Reference is made to the Flash Report for the nine-month period ended December 31, 2011 of Mitsui & Co., Ltd. (Mitsui), announced on February 2, 2012, and other relevant timely disclosure information.
Mitsui hereby announces that a settlement has been reached between its subsidiaries, MOEX Offshore 2007 LLC (MOEX Offshore) and MOEX USA Corporation (collectively, MOEX Entities), and the government of the United States of America (United States), with regard to the civil and administrative penalties related to the Gulf of Mexico oil spill incident that occurred on April 20, 2010 (Incident).
Under the settlement, the MOEX Entities will make a payment of US$45 million to the United States, as well as payments of additional amounts allocated to the five states bordering on the Gulf of Mexico. Each state will receive payment only if such state provides a written release (State Release(s)) releasing the MOEX Entities, Mitsui Oil Exploration Co., Ltd. (the parent company of the MOEX Entities), their officers, directors, shareholders, employees and agents (MOEX Released Parties) from potential state law civil and administrative penalty claims, and covenanting not to sue the MOEX Released Parties for civil and administrative penalties, relating to the Incident. If all the Gulf States supply State Releases, the amount paid to the states will total US$25 million.
When the above payments by the MOEX Entities, including the payments to each of the states that has submitted a State Release, are made, the United States will provide a covenant not to sue the MOEX Released Parties, resolving claims by the United States for civil penalties related to the Incident under the Clean Water Act in the litigation pending in the federal district court for the Eastern District of Louisiana (Court), as well as certain other potential civil and administrative penalty claims.
Pursuant to the settlement and in accordance with Environmental Protection Agency policy, the MOEX Entities will also spend an amount that it is anticipated will total US$20 million on Supplemental Environmental Projects (SEPs) located in Texas, Louisiana, Mississippi and Florida that are to provide environmental benefits.
The settlement is subject to court approval and has been lodged on February 17, 2012 (CST) with the Court as part of the approval process. The United States may withdraw from the settlement prior to the grant of final approval by the Court under limited conditions.
Mitsui does not intend to revise its consolidated forecast for the fiscal year ending March 2012.
This announcement contains forward-looking statements about Mitsui and its consolidated subsidiaries. These forward-looking statements are based on Mitsui’s current assumptions, expectations and beliefs 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 consolidated financial position, consolidated operating results or consolidated cash flows to be materially different from any future consolidated financial position, consolidated operating results or consolidated cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, among others, the risk of governmental entities not included in the hereby announced settlement imposing fines, penalties or sanctions upon the MOEX Entities, as well as the risk of being unable to implement the SEPs as stipulated, resulting in additional payments to be made.
These risks, uncertainties and other factors also involve the other factors contained in Mitsui’s Annual Securities Report and Quarterly Securities Reports or in its other public filings, press releases or website disclosures, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements. As a result, given these factors and the magnitude of the Incident, any such liability could have a material adverse effect on Mitsui’s consolidated financial position, consolidated operating results or consolidated cash flows.