Japan Petroleum Exploration Co.,Ltd. [1662.T]
TOKYO, Apr 17 (Pulse News Wire) – Japan Petroleum Exploration CO.,LTD. (1662.T) reported the potential impacts of escalating Middle East tensions on its operations.
The company sources liquefied natural gas (LNG) through term contracts for fuel supply and power generation purposes. Due to ongoing blockades in Hormuz Kaikyou, two cargo shipments planned for the first quarter of fiscal 2026 had to be substituted from alternative regions via spot purchases, leading to significantly higher procurement costs compared to pre-tension levels. Additionally, the Garraf oil field operation in southern Iraq, managed through its subsidiary JAPEX Gulf, remains halted due to force majeure declarations from Iraq Seifu. This suspension poses challenges to revenue forecasts from the project.
While supply disruptions are mitigated by alternative sourcing methods, increased operational costs and halted production could result in substantial losses. Domestic oil and gas fields also face tight supplies of chemicals used in operations, potentially driving up costs further if conditions persist long-term. Japan Petroleum Exploration stated it would incorporate estimated impacts into its fiscal 2027 earnings forecast, scheduled for release on May 13. The company noted that the effects on the fiscal 2026 performance are expected to be minor.
It continues to monitor developments closely and strives to ensure stable energy supply.
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