Japan's Itochu to Exit Namibian Gas Venture

Japanese trading house Itochu will exit a Namibian natural gas development venture as it moves to cut exposure in resource business, Nikkei reported Saturday.

Through a joint venture, Itochu and Japan Oil, Gas and Metals National (JOGMEC) together held 15 percent share in a gas field off Namibia's southern coast since 2007. Itochu, which had 34 percent share in the joint venture, has transferred its share National Petroleum Corp. of Namibia at no cost, Nikkei said.

The Namibian state-run company already holds a majority interest in the field.

According to Nikkei, the plan was to build an undersea pipeline to bring the gas ashore, but Itochu thought that the field would not be productive enough to offset the costs.

Recently, Itochu pulled out of US shale oil space when it sold its 25 percent stake in Samson Resources Corp. back to Samson for $1. The Japanese company make the purchase in 2011 for close to $1 billion.