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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. (hereinafter "Mitsui"), together with Marubeni Corporation (hereinafter "Marubeni"), made and entered into an agreement with Petróleos de Venezuela, S.A. ("PDVSA"), a company which is involved in Venezuelan crude oil and petroleum products transactions, to jointly purchase 2 million barrels of Venezuelan crude oil for Japan based on the Master Offtake Agreement which was announced on February 23, 2007.
The Master Offtake Agreement was concluded between Mitsui/Marubeni and PDVSA, together with the Loan Agreement, which is supported by Japan Bank of International Cooperation, with an advanced loan amount of US$3.5 billion over a period of 15 years for PDVSA. This agreement was made based on the Master Offtake Agreement which allowed Marubeni and Mitsui to have the sole right to negotiate offtake terms for crude oil and petroleum products. The Loan Agreement and Master Offtake Agreement will contribute to the diversification of crude oil importers. Proceeds from the sale of Venezuelan crude oil will be appropriated to the repayment of the loan.
The VLCC carrying the crude oil will leave the loading port in Venezuela around mid- August, and the cargo will be delivered to Nippon Oil Corporation, Idemitsu Kosan Co., Ltd., and Kyokuto Petroleum Industries Co., Ltd., which is a Mitsui subsidiary company, and others in early October. The crude oil is known as Santa Barbara, a high-quality, light sweet crude oil which consists of high value-added light products, such as gasoline and naphtha. Although Japan imported crude oil from Venezuela during the second oil crisis, this will be the first time for Japan to import petroleum products based on a Master Offtake Agreement.
Venezuela is the world's 8th largest crude oil producer, and PDVSA is a 100% government-owned oil company which produces 2.4 million barrels of crude oil a day. Mitsui and Marubeni will try to offtake crude oil and petroleum products steadily from Venezuela.
|Name||Petróleos de Venezuela, S.A.|
|Business||Exploration, development, production, refining, transportation, and sales of crude oil and gas and production and sales of petroleum products.|
|Sales Amount||US$85,730 million|
|Net Income||US$6,483 million|
|Total Assets||US$70,365 million|
|Stockholder Equity||US$47,095 million|
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.
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