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Participation in FPSO chartering for Guara Field in Petrobras's pre-salt area

May 25, 2011


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MODEC, Inc. (MODEC, head office: Chiyoda-ku, Tokyo; president: Toshiro Miyazaki), Mitsui & Co., Ltd. (Mitsui, head office: Chiyoda-ku, Tokyo; president: Masami Iijima) and Mitsubishi Corporation (Mitsubishi, head office: Chiyoda-ku, Tokyo; president: Ken Kobayashi) have agreed to invest in building and chartering a floating production, storage, and offloading system (FPSO) to GUARA B.V, a Dutch company belonging to BM-S-9 consortium members. The FPSO will be delivered offshore Brazil and used to develop the giant pre-salt region of the Santos Basin, in the BM-S-9 block (Guara Area) under concession to the consortium comprised of the following three companies: Petróleo Brasileiro S.A - Petrobras (45%), BG E&P Brasil Ltda - BG (30%), and Repsol Sinopec Brasil S.A - Repsol Sinopec (25%).

Mitsui and Mitsubishi shall soon finalize their capital investment in Dutch company Guara MV23 B.V. (MV23), a subsidiary established by MODEC. MODEC is currently converting the VLCC (very large crude oil carrier) Radiant Jewel into an FPSO under the ownership of MV23. Upon completion of the conversion, the system shall be named the FPSO Cidade de Sao Paulo MV23 and be deployed to the BM-S-9 (Guara) Block off the Brazilian coast, where vast oil reserves lay beneath a layer of rock and salt at a depth of 5,000 meters.

The topsides modules will be lifted and integrated on the FPSO in Brazil. The FPSO is scheduled for delivery during the 4th quarter of 2012, and is expected to be engaged in oil production for 20 years. MODEC is responsible for the engineering, procurement, construction, mobilization, and operation of the FPSO, including topsides processing equipment as well as hull and marine systems.

This is the second FPSO chartering project for the pre-salt area oil field, following the one announced in March 2010 also by us. MV23's Brazilian local partner as joint venture partner in the tender, Schahin Group, is considering the participation as a shareholder of MV23 for a certain share. Schahin Group will also take some roles in the operation of the FPSO.

Outline of FPSO

Oil processing capacity 120,000 barrels of oil per day
Gas processing capacity 180 million cubic feet per day
Oil storage capacity approximately 1,600,000 barrels
Water injection capabilities 150,000 barrels per day
Mooring Type Spread Mooring (in 2,140 meters)

Controlling stake of MV23 (after share participation)

MODEC, Inc. 34%
Mitsui & Co., Ltd. 33%
Mitsubishi Corporation 33%

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.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Media Relations Department
Takatsugu Ohki
Telephone: +81-3-3285-7562
Facsimile: +81-3-3285-9819
MODEC, Inc.
Corporate Planning Dept.
Telephone: +81-3-6203-0200
Facsimile: +81-3-5512-1600
Mitsubishi Corporation
Press Relations Office
Corporate Communications Dept.
Telephone: +81-3-3210-2171
Facsimile: +81-3-5252-7705