Japan to Look for Oil, Gas Off Niigata Coast

Japan will carry out test drilling in the Sea of Japan off Niigata Prefecture next spring to prospect for oil and natural gas.

JX Nippon Oil & Gas Exploration Corp. will carry out the drilling, and commercial production will be considered if a large enough deposit is confirmed at the site about 30 km southwest of Sado Island, media reports said. Commercialization could begin as early as 2023.

The survey, which will cost $124 million.

The government carried out experimental drilling off Niigata in 2003 and 2004 but failed to find enough reserves to be exploited commercially.