Oil Development Co., Ltd. has agreed to sell its gas manufacturing and pipeline operations in Hokkaido to Hokkaido Electric Power Co., Inc. for 31 billion yen as part of a strategic portfolio realignment.

Target Information

The target of this transaction is the gas manufacturing and sales operation, along with the gas pipeline services, owned by Oil Development Co., Ltd. (1662). This business is based in Hokkaido, Japan, and has reported revenue of approximately 9.86 billion yen for the fiscal year ending March 2025. The divestiture of these assets is part of a strategic initiative by the company to streamline its portfolio and enhance revenue generation by focusing on its core competencies.

While the gas production and sales activities are being sold, Oil Development Co., Ltd. will continue to engage in exploration, development, and production of crude oil and natural gas in the region. This indicates the company's intention to concentrate on more profitable and less competitive areas of operation while divesting less strategic assets.

Industry Overview in Japan

The natural gas industry in Japan has been experiencing significant transformation in recent years, driven by a combination of regulatory changes, technological advancements, and shifts

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Disclosed details

Transaction Size: $2M

Revenue: $1M

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