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Participation in project for ultra-deepwater drillship to be chartered by Petrobras for pre-salt exploration

Jun. 16, 2009


Nippon Yusen Kabushiki Kaisha
Mitsui & Co., Ltd.
Kawasaki Kisen Kaisha, Ltd.
Japan Drilling Co., Ltd.


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Nippon Yusen Kabushiki Kaisha, Mitsui & Co., Ltd., Kawasaki Kisen Kaisha, Ltd., and Japan Drilling Co., Ltd. ("J4") announced today that J4 has agreed to participate in a project for an ultra-deepwater drillship to be chartered by Petroleo Brasileiro S.A. ("Petrobras") for pre-salt exploration. J4's aggregate participation accounts for the majority share of the project company, Etesco Drilling Services, LLC. ("EDS") of the United States, which was established by Etesco Construções e Comércio Ltda. ("Etesco") of Brazil, and the capital contribution was completed on June 12th with another foreign company.

In August 2008, EDS concluded, with Samsung Heavy Industries Co., Ltd. of South Korea, a construction contract for one drillship. After its delivery, scheduled for the end of January in 2012, EDS will start to provide charter service to Petrobras for a maximum of 20 years.

Total investment in the project amounts to approximately US$820 million, and EDS concluded a loan agreement for US$650 million on June 12th. The drillship will be chartered by Petrobras for ultra-deepwater exploration in pre-salt fields with a water depth of up to 10,000 feet (approximately 3,000 meters).

J4 seeks to contribute to Petrobras by participating in this drillship charter project for exploration for oil and gas in pre-salt fields in Brazil.

EDS

Please scroll horizontally to look at table below.

Company Name Etesco Drilling Services, LLC
Establishment 7 April, 2008
Location United States
Maximum Equity US$170 million
Shareholders(*) Nippon Yusen Kabushiki Kaisha 33.70% J4 share in total
76.48%
Mitsui & Co., Ltd 21.78%
Kawasaki Kisen Kaisha, Ltd. 20.00%
Japan Drilling Co., Ltd. 1.00%
Etesco Construções e Comércio Ltda. 11.76%
Mike Mullen Energy Equipment Resource Inc. 11.76%

*: Each shareholder's investment is made through its 100% SPC.

Overview

Total Investment Amount Approximately US$820 million
Overview Charter service of ultra-deepwater drillship for Petrobras S.A.
Term Firm 10 years + Optional 10 years
Equipment Drillship for ultra-deepwater exploration; up to 10,000 feet water depth
(Length: 228 m, Width: 42 m)
Operation & Maintenance Etesco group company

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

Nippon Yusen Kabushiki Kaisha
Jun Katayama
Telephone: +81-3-3284-5188
Facsimile: +81-3-3284-6382
Mitsui & Co., Ltd.
Mikako Sachigai
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819
Kawasaki Kisen Kaisha, Ltd.,
Toshiaki Takasaki
Telephone: +81-3-3595-5083
Facsimile: +81-3-3595-5001
Japan Drilling Co., Ltd.
Kazuhiro Yoshinaga
Telephone: +81-3-5847-5862
Facsimile: +81-3-5644-5701