Magnum forms Gulf of Mexico joint venture with Japanese group

Petroleum News

Texas-based independent Magnum Hunter Resources said Sept. 9 that it had formed a joint venture with NI Energy Venture, an affiliate of Japanese trading company Nissho Iwai American Corp., to develop and explore five Magnum blocks on the Gulf of Mexico's outer continental shelf.

Under terms of the deal, Nissho Iwai will provide financial assistance and participate in the drilling, completion and further development of wells in exchange for a share of production. But Magnum provided no further details about its deal with Nissho Iwai. Magnum said only that "the total consideration on Nissho Iwai's account will be about $11 million."

Gary Evans, Magnum's chief executive officer, said that with 171 Gulf blocks in Magnum's inventory, "we need to continue to seek industry partners who can participate in our projects and can assist us in funding the capital requirements to sufficiently develop them."

The joint venture covers South Timbalier block 264 and Ship Shoal blocks 278 and 358 offshore Louisiana, and High Island blocks A-153 and A-154 offshore Texas. Magnum operates two of the blocks.