Jurisdiction - Japan
Hogan Lovells Advises JX Nippon Oil & Gas Exploration Corporation In Joint Venture With NRG Energy.

28 July, 2014


Hogan Lovells advised JX Nippon Oil & Gas Exploration Corporation (“JX Nippon”) in its formation of a 50/50 joint venture company (“ the Company”) through its wholly owned subsidiary JX Nippon Oil Exploration (EOR) Limited1; and Petra Nova Holdings LLC, a wholly owned subsidiary of NRG Energy, Inc. (“NRG”).

The Hogan Lovells team was led by partners Jennifer Biever, David Locascio, and Mary Anne Sullivan, who assisted JX Nippon on all aspects of the transaction, including negotiating all key transactional, construction and project finance documents, conducting all contractual, environmental and regulatory due diligence and analysis, interacting with the DOE, and complying with CFIUS.


The Project has been selected by the United States Department of Energy to receive up to USD 167 m as part of the Clean Coal Power Initiative Program2. In addition to that, it has been agreed with the Japan Bank for International Cooperation and Mizuho Bank, Ltd. that they provide this Project with a project-finance type loan. Finance from Mizuho is backed by Nippon Export and Investment Insurance. The overall cost of this Project will be approximately USD 10bn.

The Company is constructing the world’s largest post-combustion CO2 capture plant at W.A. Parish power plant in Texas (the largest fossil-fueled plant in the U.S., which is located in the south-west area of Houston and is owned by a subsidiary of NRG Energy, Inc.) and plans to increase oil production by injecting the captured CO2 into the West Ranch Oil Field, approximately 130 kilometers away from W.A. Parish power plant. The Project is slated to start injection of the CO2 into the West Ranch Oil Field and commercial operation of CO2 capture plant in the fourth quarter of 2016.

End Notes:

1 a wholly owned subsidiary of JX Nippon Oil Exploration (U.S.A.) Limited, a wholly owned subsidiary of JX Nippon
2 a program to enable and accelerate the deployment of advanced technologies to promote clean, reliable, and affordable electricity for the U.S.


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