National Oil Corporation Research Articles

The Relationship between Transformational Leadership and Organizational Culture in National Oil Corporation of Libya

The purpose of the study is to investigate the relationship between transformational leadership and organizational culture in National Oil Corporation of Libya. This research was carried out by measuring the data gathered from the five point likert scale. The Multifactor Leadership Questionnaire (MLQ) was used to measure transformational leadership, while the Organizational Culture Assessment Instrument (OCAI) was used to measure organizational culture. Quantitative survey method was applied and a sample of 227 employees of National Oil Corporation of Libya was selected to answer the instrument. SPSS software was used to analyze the data collected based on descriptive statistics (mean, standard deviation, percentage, Correlation and Regression). The empirical results indicate that the leaders of National Oil Corporation of Libya follow transformational leadership style to manage their organization, while the relationship between transformational leadership and organizational culture was positive significant relationship and Hierarchy culture was a dominant culture in NOC of Libya.

The Effect of Organizational Culture and the Relationship between Transformational Leadership and Job Satisfaction in Petroleum Sector of Libya

The purpose of this study is to investigate the effect of organizational culture on the relationship between transformational leadership and job satisfaction in petroleum sector with a focus on the National Oil Corporation of Libya (NOC). This research was carried out by measuring the data gathered from the five point Likert scale. The Multifactor Leadership Questionnaire (MLQ), Organizational Culture Assessment Instrument (OCAI) and Job Satisfaction Survey (JSS) were used. Quantitative survey method was applied and a sample of 50 employees from the National Oil Corporation of Libya was selected as a sample random sampling to answer the instrument of the study. SPSS software was used to analyze the data collected based on descriptive statistics (mean, standard deviation, percentage, T-test, and Pearson Correlation Coeffiecient). The findings indicate that the leaders of National Oil Corporation of Libya follow transformational leadership style to manage their organization and the dominant culture in NOC of Libya is Hierarchy culture while the relationship between transformational leadership style, job satisfaction and organizational culture is positive significant relationship.

Evaluating the Usability and Efficiency of the National Oil Corporation – Digital Library in Libya

This paper presents a preliminary discussion on some of the results from a survey aimed to explore, describe and explain some of the usability characteristics in digital library evaluation in the Libyan context. The study is framed in the evaluation of a bilingual digital library: The National Oil Corporation (NOC) – Digital Library in Libya. It is worth mentioning in this context that this study is the first of its kind to address evaluation issues in the context of Arabic language and it is limited to evaluate the effectiveness of the design of the prototype digital library which was designed using Greenstone digital library software. This paper discusses the evaluation of the prototype and reviews the analysis of the questionnaire, which was used for gathering data pertaining to the digital library that was built. The paper intends to discuss the methodology used for evaluating the prototype digital library, the framework, and the steps implemented to reach the final goal. Users’ opinions and views on the digital library are also presented in this paper. Evaluating the prototype digital library is considered an important stage towards developing a full-scale NOC digital library

ENVIRONMENT AND THE CHALLENGES OF THE NIGERIAN NATIONAL PETROLEUM CORPORATION (NNPC) IN NIGERIA

Petroleum production and export play a dominant role in Nigeria's economy and account for about 90% of her gross earnings. This dominant role has pushed agriculture, the traditional mainstay of the economy, from the early fifties and sixties, to the background. The Nigerian National Petroleum Corporation (NNPC) found in 1977 through the merger of some of the departments of the Ministry of Petroleum Resources, and the old Nigerian National Oil Corporation, is charged with the responsibility for upstream and downstream developments, regulating and supervising the oil industry on behalf of the Nigerian Government. Since the discovery of oil in Nigeria in the 1950s, the country has been faced with the negative environmental consequences of oil development. The growth of the country's oil industry, combined with population explosion and lack of environmental regulations, has led to substantial damage to Nigeria's environment, especially in the Niger Delta region, the centre of the country's oil industry. Nigeria's main environmental challenges result from oil spills, natural gas flaring and deforestation. Industrialization is vital to a nation‘s socio-economic development as well as its political structure in the comity of nations. It provides ready employment opportunities for a good percentage of the population in medium to highly developed economies. Although, industrialization is inevitable, various devastating ecological and human disasters which have continuously occurred over the last three decades or so, implicate industries as major contributors to environmental degradation and pollution problems of various magnitudes. It is therefore recommended that, nongovernmental organizations, international oil companies and well spirited individuals will have to work together to slow the degradation of Nigeria's environment and take steps to mitigate the problems that a half-century's worth of oil production already has caused.

Developing country FDI and development: The case of Chinese FDI in the Sudan

This paper examines the development implications of Chinese investment in the Sudan to enable a better understanding of the impact of foreign direct investment (FDI) from developing countries. By examining China’s early investment in the Sudan by the Chinese National Oil Corporation (CNPC) and the consequent cascade effect on the Sudan’s significant economic growth during the decade between 1997 and 2007, this paper highlights how progress was achieved through interaction between Chinese FDI and host institutions. It demonstrates that developing country FDI can make positive contributions to development particularly in developing countries, due not only to its capacity appropriate for developing countries, but also to its strategies and mindset more adaptable to the development needs and institutional environment in the host country. While extant research often emphasizes how institutions make FDI’s impact on host countries differ and how institutions in developing countries should be improved in order to attract FDI, this research indicates that proactive adaptation of strategy by transnational corporations (TNCs) to fit local needs and institutions may be more effective for improving institutions and consequently the development in host countries.

ＣＯ２攻法による増進回収とＣＯ２地中貯留への展望―ＪＮＯＣ‐ＪＯＧＭＥＣの事例―

Carbon-dioxide Capture and Storage (CCS) has been topical research since CO2 is required to reduce from atmosphere as one of greenhouse gas. CO2 geological sequestration can be learnt from the CO2 enhanced oil recovery (CO2-EOR) technologies applied to the oil industry since there are many projects and developments around the world. In this paper, the pilot tests and their related research conducted by Japan National Oil Corporation (JNOC) and Japan Oil, Gas and Metals National Corporation (JOGMEC) are reviewed in order to contribute to the CCS technologies. The pilot tests conducted in Kubiki, Ikiztepe and Sarukawa oil fields with the reservoir simulation studies, laboratory experiments and facility designs are mainly discussed. In addition, some feasibility studies for Kuwaiti, Abu Dhabi and Mexican oil fields are also reviewed. Most of the technologies reviewed in this paper are also useful to the CCS and give the shortcut to successful CCS projects.Carbon-dioxide Capture and Storage (CCS) has been topical research since CO2 is required to reduce from atmosphere as one of greenhouse gas. CO2 geological sequestration can be learnt from the CO2 enhanced oil recovery (CO2-EOR) technologies applied to the oil industry since there are many projects and developments around the world. In this paper, the pilot tests and their related research conducted by Japan National Oil Corporation (JNOC) and Japan Oil, Gas and Metals National Corporation (JOGMEC) are reviewed in order to contribute to the CCS technologies. The pilot tests conducted in Kubiki, Ikiztepe and Sarukawa oil fields with the reservoir simulation studies, laboratory experiments and facility designs are mainly discussed. In addition, some feasibility studies for Kuwaiti, Abu Dhabi and Mexican oil fields are also reviewed. Most of the technologies reviewed in this paper are also useful to the CCS and give the shortcut to successful CCS projects.

Fault configuration produced by initial arc rifting in the Parece Vela Basin as deduced from seismic reflection data

Abstract The Parece Vela Basin (PVB), which is a currently inactive back‐arc basin of the Philippine Sea Plate, was formed by separation between the Izu‐Ogasawara Arc (IOA) and the Kyushu‐Palau Ridge (KPR). Elucidating the marks of the past back‐arc opening and rifting is important for investigation of its crustal structure. To image its fault configurations and crustal deformation, pre‐stack depth migration to multichannel seismic reflection was applied and data obtained by the Japan Agency for Marine‐Earth Science and Technology and Metal Mining Agency of Japan and Japan National Oil Corporation (Japan Oil, Gas and Metals National Corporation). Salient results for the pre‐stack depth‐migrated sections are: (i) deep reflectors exist around the eastern margin of KPR and at the western margin of IOA down to 8 km depth; and (ii) normal fault zones distributed at the eastern margin of the KPR (Fault zone A) and the western margin of the IOA (Fault zone B) have a total displacement of greater than 500 m associated with synrift sediments. Additional normal faults (Fault zone C) exist 20 km east of the Fault zone B. They are covered with sediment, which indicates deposition of recent volcanic products in the IOA. According to those results: (i) the fault displacement of more than 500 m with respect to initial rifting was approximately asymmetric at 25 Ma based on PSDM profiles; and (ii) the faults had reactivated after 23 Ma, based on the age of deformed sediments obtained from past ocean drillings. The age of the base sediments corresponds to those of spreading and rotation after rifting in the PVB. Fault zone C is covered with thick and not deformed volcanogenic sediments from the IOA, which suggests that the fault is inactive.

中東アブダビ海域における坑井作業の変遷‐坑井管理と新技術の適用‐

Japan Oil Development Company (JODCO) has been operating several offshore oil fields jointly with Abu Dhabi National Oil Corporation (ADNOC) in the U.A.E. since the 1970's. A lot of new drilling technologies have been introduced to contribute in assisting maximize economic oil recovery through innovative horizontal hole drilling techniques and to rectify drilling problems such as shale instability and well integrity issues. This paper describes the progress of horizontal drilling technique including multi-laterals tie-back system and casing window opening technology, operation guidelines for shale instability problem based on chemical and mechanical analysis, and applications related to well integrity security. In addition, approaches for the integrated drilling program and the objective evaluation of drilling performance are briefly introduced.

Stratigraphy and sedimentology of the Middle Ordovician Hawaz Formation (Murzuq Basin, Libya)

The Middle Ordovician Hawaz Formation is a 200-m (660-ft)-thick succession made up of fine-grained quartzarenites displaying a variable degree of bioturbation. It records the deposition in a large-scale, low-gradient estuary, which was partially controlled by tectonic extension. The upper boundary of the formation is marked by two erosion surfaces (unconformities U1 and U2), related to the Late Ordovician glaciation. The U1 and U2 erosion surfaces generated a pronounced paleotopography that controlled the deposition of the Upper Ordovician sequences. Tectonism influenced the paleogeography, although faults were unimportant from the point of view of sedimentary thickness. Tectonic subsidence was moderate, and accumulation rates were low. Physiography favored tidal power, especially during transgressive episodes, when the coastal embayment was flooded. We defined 11 lithofacies, forming 6 facies associations. These associations are subtidal sandstones; storm-reworked, shoreface sandstones; shoreface-to-beach sandstones; channel-sandstone bodies; nearshore to inner-platform sandstones; and K-bentonites. Trace-fossil assemblages match Skolithos and Cruziana archetypal ichnofacies. On the basis of the dominant facies associations and ichnofacies, we divided the formation into three informal units, from base to top: HW.1, HW.2 and HW.3. Periodically, volcanic ash was supplied to the basin from distal eruptive centers and was preserved as thin beds of K-bentonite interstratified with the shoreface sandstones, but not with the tidal-dominated sandstones. We divided the Hawaz Formation into five third-order depositional sequences. Lowstand deposits were not identified. The lower boundaries of transgressive systems tracts are tidal ravinement surfaces or sequence boundaries, whereas the upper boundaries are flooding surfaces. The transgressive systems tracts are constituted by early transgressive tidal deposits separated by a wave ravinement surface from the late transgressive storm-dominated deposits. Highstand systems tracts consist of bioturbated shoreface-to-beach sandstones, which record seaward, shoreline progradation. Emilio obtained his Ph.D. in geology from the Universitat de Barcelona in 1988. Since then, he has been a lecturer in basin analysis and petroleum geology. He has been involved in several research projects on sedimentology and basin analysis in Spain, northern Africa, Antarctica and South America. His present-day research interests include three-dimensional modeling of sedimentary bodies and reservoirs. A professor of stratigraphy at the Universitat de Barcelona, M. Marzo's research interest focuses on the application of clastic sedimentology, sequence stratigraphy, reservoir modeling, and basin analysis to the exploration and production of hydrocarbons. He has been involved in several research projects funded by oil companies in southern Europe, the North Sea, South America, and northern Africa. Jordi M. de Gibert received his Ph.D. from the Universitat de Barcelona in 1996. After a period at the University of Utah, he returned to Barcelona in 1999, where he currently holds a position as a tenure-track lecturer. His interests and areas of expertise include trace fossils, their paleobiological significance, and their implications for understanding ancient depositional environments. K. Tawengi received a B.Sc. degree in geology from Alfateh University, Libya, in 1984, and an M.Sc. degree in sedimentology and stratigraphy from Durham University, England, in 1996. He worked as an explorationist with Agip Oil Company in Libya from 1985 to 2000 and since then has worked as a senior exploration member with REPSOL Exploration in Murzuq S.A. His main fields of interest are sedimentology, stratigraphy, and subsurface geology. A. Khoja graduated in 1972 from the University of Libya. He received a diploma in petroleum geosciences from Oxford Polytechnic (1991) and an M.Sc. degree from Oxford Brookes University (1993). He joined the National Oil Corporation of Libya in 1972 and is presently the regional studies superintendent in the National Oil Exploration Department. Nestor obtained his degree in geology from Cordoba University (Argentina) in 1982 and his postgraduate in petroleum geology in the University of Cuyo, Argentina. He joined YPF in 1984 and worked in their exploratory department in Mendoza, Plaza Huincul, and Neuquen until the year 2000. Subsequently, he became Libya team leader for REPSOL- YPF in Madrid. He is currently director of exploration and production in Brazil.

「南極地域石油天然ガス基礎地質調査」（FY1980-1999）によって 得られた海底堆積物コアの古地磁気・岩石磁気測定

「南極地域石油天然ガス基礎地質調査」（FY1980-1999）によって 得られた海底堆積物コアの古地磁気・岩石磁気測定

イラクの石油ポテンシャル―石油地質概要と南部の大規模未開発油田―

Geological Survey Department of Japan National Oil Corporation has been conducting in-house studies on petroleum geology and undeveloped giant fields of Iraq, and this paper gives an outline of the results of the studies. Iraqi oil fields have the following characteristics: i) Main reservoirs are the Cretaceous carbonate and sandstone rocks in southern oil fields and the Tertiary carbonate rocks in northern oil fields, ii) Typical structures are gentle anticline in southern oil fields and steep anticline with reverse fault in northern oil fields, iii) Oil fields have multiple reservoirs. In southern Iraq, there are many undeveloped giant fields including Majnoon, West Qurna and Bin Omar fields, which have reserves of more than 5 billion barrels. Main reservoirs of the fields are the early Cretaceous Yamama formation, Zubair formation, Nahr Umr formation and the late Cretaceous Mishrif formation. The area where each formation shows good reservoir properties are restricted and this can be explained by the difference of depositional environment of the formation in the area. Development costs of the undeveloped fields in southern Iraq are estimated to be from hundreds of millions of dollars to billions of dollars although unit costs($/bbl) for the development are fairly low. Difference in productive formations and/or operation environments(desert or swamp) affect the development costs.

ポストオーディット導入によるプロジェクト評価精度向上

JNOC (Japan National Oil Corporation) has been evaluating chance of success (i. e. probability of finding oil or gas) and probabilistic reserves distribution for exploration prospects since 1997 and has been carrying out post audit to compare the results with predictions to improve qualities of the evaluation since 1999.This paper introduces the overview of results of the JNOC's geologic risk evaluation over more than five years. Post audit has been recognized as an important process to monitor and improve evaluation accuracy in the prediction of geologic risk. Four main factors/indicators have been compared between predictions and results in JNOC's post audit: (i) predicted versus actual success ratios, (ii) predicted critical risk versus actual failure reason for dry holes, (iii) expected reserves for each prospect versus size of discovery, and (iv) expected reserves for the portfolio versus actual amount of discoveries.

Catalyst developed by SCERI is awarded

The Japan National Oil Corporation (JNOC) has promoted research and development of oil shale under the guidance of the Ministry of International Trade and Industry (MITI) in cooperation with 35 Japanese companies in various industrial fields including iron and steel, heavy machinery and mining. Three types of plant (vertical shaft, circular grate and cross flow) were constructed to promote oil shale research and development on a 3 ton per day bench scale. These were designed and constructed in 1982 and operated through 1983. On the basis of the experimental results, the process of the 300 ton per day pilot plant for research of commercial plants consisted mainly of a vertical shaft type retort. In addition to a vertical shaft type retort, as a retorting/gasifying unit, crushing, screening, oil recovery and heat recovery units were installed. The individual units, installation work and trial runs were completed by the end of 1986. The formal programme of research started in 1987 and totalled 270 days (including 100 days continuous operation) by the end of 1988. The pilot plant operated smoothly and stably. JNOC dismantled the pilot plant at the end of March 1989 and the research and development activities of the pilot plant operations were successfully completed as scheduled. Based on the results of the pilot plant operations, JNOC conducted the conceptual study of a 50 000 ton per day commercial plant for processing Condor shale in Australia and Maoming shale in China.

Sealing assessment of normal faults in clastic reservoirs: Modeling the petrophysical and stress attributes of faults.

We describe procedures for estimation of the petrophysical properties of fault rocks and the stress regime in normal faults as incorporated in the PC software (FAULTAP) developed at the Technology Research Center of Japan National Oil Corporation (JNOC/TRC). A quantitative appraisal of the petrophysical properties of fault rocks provides key information for fault sealing assessment and reservoir management. Empirical evidence shows that the permeability of fault rocks appears to be approximately two orders of magnitude lower than that of the host reservoir rocks. Among the deformation processes in clastic rocks, shale smear by faulting seems to be a most efficient mechanism of permeability reduction in fault rocks. The permeability of fault rocks has an inverse relationship with the clay content incorporated from the host rock as well as with the depth of fault rock and fault displacement. The relationship between clay content and pore throat radius in fault rock forms a basis for calculation of the capillary pressure of fault rock and the hydrocarbon column height that a fault can laterally support. The integrity or the failure of fault seals is crucially dependent upon how various portions of the fault surface are subjected to stress accumulation in the recent geological time. Simple methods for calculation of in-situ stresses on normal faults are presented for evaluation of fault failure by slip tendency or dilation tendency. An integration of fault failure and shale smear parameters provides a better assessment of fault sealing or potential leakage in response to the recent stress regime or changes in the pressure regime during field production.

米国カリフォルニア州ロストヒルズ油田で実施した，坑井間電磁および弾性波トモグラフィーによる貯留層モニタリングの試み

Reservoir monitoring is the key issue to design the optimum plan for recovery enhancements of hydrocarbon production. The Technology Research Center of Japan National Oil Corporation has conducted extensive field measurements to validate the current cross-hole technologies at the Lost Hills Oil Field, California in the first quarter of 2000. The experiments were composed of cross-hole electromagnetic surveys between fiberglass cased boreholes in both frequency domain and time domain methods together with seismic tomography. The time domain electromagnetic survey was designed to test the newly developed time domain down-hole transducer. However, the tool was broken down during the measurement. For the frequency domain electromagnetic method, we conducted three kinds of experiments, which are time lapse analysis with previously measured data, multi-frequency survey for higher resolution analysis, and measurement with setting up transducer in a steel cased hole. Multi-stage multi-disk borehole seismic source, which has been developed in collaboration between JNOC and OYO corporation was employed for seismic tomography.The subsurface velocity profile from seismic tomog raphy was utilized to calculate the formation porosity. Since the standard calculation procedure of sonic porosity is not adequate to apply for the diatomite reservoir because of its nature of high porosity despite very low permeability, a correction function was developed and employed. Then the resistivity profile was incorporated into estimation of fluid saturation in the reservoir by Archie's equation. The resultant values of porosity and water saturation are quite reasonable in comparison with reported ranges for this field.Assuming that the regional compaction being related to reduction of reservoir porosity has not been significant from 1997 to 2000 based on the ground subsidence in the area, we calculated a fluid saturation profile since the beginning of water flooding. We revealed the manners of fluid saturation change in the reservoir during water flooding through the time lapse analysis.

メタンハイドレート層からの生産へ向けた極地での挑戦 カナダマッケンジーデルタにおける国際共同プロジェクトの紹介

The first production test of natural methane hydrate formation was carried out at Mackenzie Delta in the Arctic Canada. Three wells were drilled through the hydrate formation beneath permafrost on a line at 40m distance, where coring, logging, various science experiments and production testing were performed over an 79 day period, from December 25, 2001 to March 14, 2002.This research project was organized and funded by participants from five (5) countries of Japan, Canada, US, Germany and India. Japan National Oil Corporation (JNOC) and Japan Petroleum Exploration Co., Ltd. (JAPER) undertook its operation while the Geological Survey of Canada (GSC) coordinated the science program.The production test was executed at the center well in two methods. One was depressurizing test using Modular Dynamic Formation Tester (MDT), and the other was heating test by circulating hot fluid against a hydrate layer. Post-test wireline log data was obtained and compared with pre-test log data. Down hole temperatures were continuously monitored using fiber optic cables. During the test, cross well tomography survey was run in two adjacent wells at both sides.This paper describes the field operation of the project. All data will be open in August 2004 after a full study and analysis by the project participants.

メタンハイドレートの資源化に向けた研究開発プロジェクトの現状について―掘削仕上技術課題は何か―

In order to increase the share of primary energy supplied by natural gas and to augment the supply of domestically produced natural gas, Japan became active in the R&D area of Methane Hydrate Resource in the mid-1990s. Under the leadership of the METI, the “Nankai Trough” METI Exploratory Test Well, the “Collaborative R&D Studies on Methane Hydrate” and the drilling experiment in the Mackenzie Delta were conducted. Based on the results of these efforts, the “Methane Hydrate Exploitation Program” was newly announced in 2001, with establishment of the “Research for Methane Hydrate Resources in Japan” project as a means of putting that program into force.The “Research for Methane Hydrate Resources in Japan” is being conducted by the “Research Consortium for Methane Hydrate Resources in Japan”an organization comprised of the Japan National Oil Corporation (JNOC), the National Institute of Advanced Industrial Science and Technology (AIST) and the Engineering Advancement Association of Japan (ENAA) and the Japanese Industry. Under this arrangement, JNOC conducts resource assessment R& D, AIST advances production method R&D, and ENAA handles environmental impact assessment R&D.Since then, the first round of onshore production testing in the Mackenzie Delta, Canada was implemented as the joint international collaborative research in 2002.In the beginning of 2004, comprehensive drilling campaign is planned to clarify the accumulations of the resources in the Nankai Trough offshore Japan. The second onshore production testing in Alaska is also under planning.These undertakings have gradually clarified the issues in the area of drilling and completion technology that we should face and handle for further exploration and future development. Top-hole drilling technology in the deep water, horizontal well drilling and completion technology in the unconsolidated formation, offshore production testing methods specific to methane hydrate development are the issues to be investigated.

低浸透性火山岩貯留層への挑戦 大深度火山岩貯留層生産性向上技術開発について

The first multi-stage completion in a deep, hot, and low permeability volcanic rock of the Minami-Nagaoka Field, Niigata Prefecture, Japan, was successfully completed using six propped fracture treatment stages in 2001. This concept was introduced through the joint research program, “Productivity Improvement in a Deep Volcanic Rock Reservoir”, between Japan National Oil Corporation and Teikoku Oil Co., Ltd. started in 1997. The history and current status of Minami-Nagaoka Field is briefly reviewed and the outline of this project including the background of project initiation is discussed.

ガスハイドレート メタンハイドレート層の掘削 基礎試錐「南海トラフ」掘削実績

Exploration for natural methane hydrate was carried out in the Nankai-Trough offshore Japan at a water depth of 945 m over an 88-day period, from November 1999 to February 2000. This was a national project led by the Ministry of International Trade and Industry (MITI) to seek a new energy source. It was organized by Japan National Oil Corporation (JNOC) in collaboration with Japan Petroleum Exploration Co., Ltd. as the drilling operator. The Nankai-Trough wells were drilled with a deepwater semisubmersible rig. The location was selected where BSR (Bottom Simulating Reflector) is the clearest on the seismic section. Six wells were drilled through the BSR horizon and the hydrate rich formation was confirmed between 1135 m to 1213 m BMSL (below mean sea level) by LWD data, core samples and electric logging data.

我が国原油自主開発の未来像

Now, Japanese oil exploration companies face an unprecedented crisis. To begin with the abolishment of Japan National Oil Corporation (JNOC) which played the most important role in the oil exploration activities in foreign countries, there are many problems such as the lost of oil development interest in Saudi Arabia and the accumulated loss of some Japanese oil companies. On the other hand, the dependence on Middle East in the field of oil import of Japan is approaching the critical level i.e. more than 85%. The act of abolishment of Japan National Oil Corporation could be regarded as the model case of the reformation of a public corporation in Japan.The main functions of JNOC include (1) to provide oil exploration activities with risk money, (2) research and development in the field of oil exploration, (3) to manage the national petroleum reserve. And, these important functions will be succeed to a newly established independent administrative entity, which means the Government recognizes the importance of national aid in oil exploration.Of course, there are some problems to be solved in the past JNOC's activities. Since the establishment of JNOC 34 years ago, it has lent and invested about 2 trillion Japanese Yen and has had the accumulated loss of 0.9 trillion Yen. This is mainly why the Japanese oil exploration policy was unsuccessful in strengthening the Japanese oil companies and unexpected changes of international economy such as the rapid appreciation of Japanese Yen occurred.In the 21st century, in order to compete equally with Western Super Oil Majors which have the advantage of capital and technology, it is to some extent essential for the Government to assist the Japanese oil companies. Japan, as the second largest oil consuming country, is responsible for the development of upstream business which gives us a large amount of benefit. In addition, it is necessary for us to establish a core oil exploration company including electric companies, gas companies and sogoshousha together with the Governmental aid, because big projects such as the developments of oil and gas fields amount to 1 trillion yen.