Act on Japan Oil, Gas and Metals National Corporation (Act No. 94 of July 26, 2002)

Country / jurisdiction: Japan · Year: 2002 · Status: In force · Level: National · Type: Voluntary

This act establishes the Japan Oil, Gas and Metals National Corporation (JOGMEC) as an independent governmental body, known as an "Incorporated Administrative Agency." JOGMEC integrates the functions of the Japan National Oil Corporation and the Metal Mining Agency of Japan.

Under the Act, the agency is authorised provide the necessary funds to ensure the security of energy (oil, gas, coal) and minerals supply to Japan (Article 3, Chapter I), support exploration activities, promote development of extractives project and administer the national stockpiling systems for both oil and metals. Its aim is to contribute a stable and affordable price of hydrocarbons and minerals, as well as to provide funds to ensure that operations are conducted in a way that minimises pollution and protects human health.

JOGMEC shall employ a number of actions to achieve these goals (Article 11, Chapter III), including: investment for exploration and extraction of petroleum/gas/coal/minerals both overseas and in Japan (both offshore and onshore); providing guarantees relating to the necessary funds for extracting hydrocarbons overseas, refining, liquefying and storing natural gas; providing guidance on techniques for the exploration and extraction of petroleum, coal and minerals; stockpiling metallic and other mineral products; providing loans for measures to control mine pollution; among others.

Article 14 (Chapter III) indicates JOGMEC may, with the approval of the Minister of Economy, Trade and Industry, obtain long-term borrowings or issue petroleum, natural gas, and metallic mineral resource bonds in order to fund the expenses mentioned above. Article 15 (Chapter III) states the government may provide a guarantee for the obligations of JOGMEC under long term borrowings or bonds.

Official source: https://www.jogmec.go.jp/content/300052290.pdf