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Mitsui, NYK Line subsidiary and Teekay Corporation in 3 companies consortium receive a letter of intent for long term charter of 4 new LNG vessels from Angola LNG Project.

Aug. 3, 2007


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Three companies consortium comprising Mitsui & Co., Ltd, NYK Bulkship (Europe) Ltd (the 100% owned subsidiary of NYK Line) and Teekay Corporation has received a letter of intent from the Angola LNG Project for the long term charter (20 years) of 4 new LNG (liquefied natural gas) vessels.  Final award of the charter contract is still subject to certain conditions.  The consortium will work out the detailed terms of contracts with the Angola LNG Project and plans to place the order for 4 new LNG vessels once the certain conditions are met which are expected around the end of September.

The major US oil company Chevron is the operator of the development of the Angola LNG Project, which is the first LNG production project in Angola and was set up together with the Angolan national oil company Sonangol, BP and Total, and plans to export approximately 5m tonnes of LNG per year, principally to the US from 2011.

Angola produced about 1.4m barrels of oil a day in 2006, making it the second largest petroleum exporting country in sub-Saharan Africa after Nigeria. In recent years environmental problems stemming from flaring on board of associated gas that leaches out during oil production have been closing in on Angola, and the Angola LNG Project is an innovative project to produce liquefied natural gas using this associated gas as feed gas. It is a highly significant project for its efforts to be considerate towards the environment through the efficient utilization of limited resources and use of the clean energy source that is natural gas.

Mitsui has been involved in LNG production, transportation and marketing projects around the world since the 1980s and, through this project, as well as further strengthening our long-standing business partnerships with oil majors, we are the first trading company to have taken the largest share in and served as a leader of an LNG transportation company consortium.
We will continue to work to build an environmentally-friendly LNG transportation business around the world.

Outline of agreement

Angola LNG Project

Investors Subsidiaries of Chevron, Sonangol, BP, Total
Location Zaire Province, near Soya in north western Angola
Expected reserves 10.5 trillion cubic feet
Supply quantity 5m tonnes per year
Supply to commence 2011

Outline of transportation contract

Ship 4 newly built membrane type LNG ships with a carrying capacity of 160,400 m3
Intended Ship-Owner Overseas special purpose company owned by Mitsui 34%, NYK Bulkship (Europe) Ltd 33% and Teekay 33%
Charter period 20 years from 2011

Notice:
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819