MODEC, Inc. (head office: Chiyoda-ku Tokyo; president: Nobuhiro Yaji), Mitsui & Co., Ltd. (head office: Chiyoda-ku, Tokyo; president: Masami Iijima), Mitsubishi Corporation (head office: Chiyoda-ku, Tokyo; president: Yorihiko Kojima) and Mitsui O.S.K. Lines (head office: Minato-ku, Tokyo; president: Akimitsu Ashida) have agreed to invest in the chartering of an FPSO (Floating Production, Storage & Offloading System) to the Brazilian national oil company (Petrobras). The facility is being supplied to Petrobras for use at the giant deepwater pre-salt oil field currently under development off the Brazilian coast.
Mitsui & Co., Ltd., Mitsubishi Corporation and Mitsui O.S.K. Lines finalized their capital investment in the Dutch company Tupi Pilot MV22 B.V. (hereinafter "MV22"), the subsidiary established by MODEC, Inc. to undertake this project. Further, on 30th March 2010, MV22 procured the financing for the project from the Japan Bank for International Cooperation and private Japanese banks and signed the loan agreement.
MODEC, Inc. has been converting an existing VLCC (Very Large Crude Carrier) tanker into an FPSO under the ownership of MV22 for charter to Petrobras. The FPSO is expected to be engaged in oil production for 15 years (with an annual extension option) at the pre-salt area oil field off the Brazilian coast and the operation will commence at Tupi area in the 4th quarter of 2010.
Off the Brazilian coast, the vast oil reserves lie beneath a layer of rock and salt at a depth of between 5,000 and 6,000 metres. It is estimated that more FPSOs will be required to fully develop the area. As the world's first attempt to develop oil deposited beneath a layer of rock and salt, the oil industry shows strong interest on the progress of this project.
Outline of FPSO
|Oil processing capacity
||100,000 barrels of oil per day
|Gas processing capacity
||150 million cubic feet per day
|Oil storage capacity
||approximately 1,600,000 barrels
Shareholders and investment stakes
|Mitsui & Co., Ltd.
|Mitsui O.S.K. Lines, Ltd.
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.