Nippon Mining Co Ltd president Yukio Kasahara said the state-owned Japanese firm hoped to find additional joint venture partners to explore for U.S. oil reserves. We have to secure the stability of oil for Japan Kasahara told reporters at the World Petroleum Congress. In the exploration area I think Japanese companies are interested in joint ventures. Nippon Mining for example last September signed an agreement with Dupont Cos &lt;DD> Conoco Inc to participate in a 135 mln dlr exploration venture that includes six wells on land and 14 offshore Louisiana. The first joint well drilled is in the Gulf of Mexicos Green Canyon Block 182 a deepwater lease that Conoco was almost forced to return to the federal government undrilled because of low oil prices. At this moment we have no success but we will proceed with Conoco. Maybe by the end of the year we will find oil there Kasahara said. He said that similar kinds of joint ventures would be best for Nippon Minings oil exploration efforts in the future. Kasahara also said Nippon Mining was not planning to acquire any U.S. refining or marketing outlets. Retail sales in general do not interest the Japanese oil companies he said. When asked whether he believed world oil prices might strengthen later this year Kasahara said he expected prices to hold steady at todays level. Within this year I think the 18 dlrs a barrel will continue. But next year I dont know he said. For the refining business stability is important. Whether the price is 18 dlrs or 20 dlrs we dont care. But encouraging additional upstream efforts may require modestly higher oil prices Kasahara added. For exploration I think 20 dlrs a barrel or 22 dlrs a barrel would be reasonable he said. The key factor in determining whether the Organization of Petroleum Exporting Countries (OPEC) would raise its 18 dlr a barrel benchmark price is the ongoing war between Iran and Iraq Kasahara said. Saudi Arabia he added was an uncertain element in the OPEC equation because of its need to maintain revenues at the same time the weakened U.S. dollar has reduced oil profits. Nippon Mining which like all Japanese crude buyers is benefitting from the drop in the value of the dollar favors continuing to price OPEC crude oil according to U.S. currency regardless of the dollar-yen relationship Kasahara said. I hope the dollar would strengthen eventually and continue to improve. I would prefer to see the (OPEC) pricing remain in dollars he said.
NIPPON MINING PLANS MORE U.S. JOINT VENTURES