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Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation to Participate in Ultra-Deepwater FPSO Chartering Project for Cernambi Sul Area of Brazilian Offshore Pre-Salt Oil Field

Mar. 22, 2012


MODEC, Inc.
Mitsui & Co., Ltd.
Mitsui O.S.K. Lines, Ltd.
Marubeni Corporation


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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), Mitsui O.S.K. Lines, Ltd. ("MOL," head office: Minato-ku, Tokyo; president: Koichi Muto) and Marubeni Corporation ("Marubeni," head office: Chiyoda-ku, Tokyo; president: Teruo Asada) have agreed that Mitsui, MOL and Marubeni will invest in a long-term charter business operated by MODEC for the purpose of providing a floating production, storage, and offloading system ("the FPSO,") for use in the Cernambi Sul area of a pre-salt oil field off the coast of Brazil. Documents to this effect were signed today.

Under this agreement, Mitsui, MOL and Marubeni will invest in Cernambi Sul MV24 B.V. (MV24), a Dutch company established by MODEC. MV24 has signed a long-term chartering agreement with Tupi B.V., a Dutch company owned by PETROBRAS NETHERLANDS B.V. (65%), BG OVERSEAS HOLDING LTD. (25%), and GALP ENERGIA E&P BRASIL B.V. (10%). The FPSO will be chartered to Tupi B.V. for 20 years.

Construction of the FPSO will involve the conversion of a VLCC (very large crude oil carrier), which will be renamed "FPSO Cidade de Mangaratiba MV24." It will be deployed to the Cernambi Sul area of the BM-S-11 block off the coast of Brazil in the third quarter of 2014. The area is part of a deepwater oil field located about 300 km south of Rio de Janeiro, Brazil. The oil is contained in the pre-salt layer about 5,000 m beneath the seabed.

MODEC and Mitsui have already provided two FPSOs for the pre-salt oil field, and this will be their third pre-salt related FPSO chartering project. It is the second project of its type for MOL and the first for Marubeni. The Schahin Group, which was the joint bidder for the projects as the local partner in Brazil, will have a 15% stake in MV24 after the commencement of the FPSO charter.

Outline of FPSO

Oil processing capacity 150,000 barrels per day
Gas processing capacity 280 million cubic feet per day
Oil storage capacity 1,600,000 barrels
Mooring type Spread mooring (at a depth of 2,300 meters)

Controlling stake of MV24

  Before the investment by the Schahin Group After the investment by the Schahin Group
MODEC, Inc. 29.4% 25.0%
Mitsui & Co., Ltd. 32.4% 27.5%
Mitsui O.S.K. Lines, Ltd. 20.6% 17.5%
Marubeni Corporation 17.6% 15.0%
Schahin Group - 15.0%

Notice:
This announcement contains forward-looking statements. 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 results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement 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
Kazuhisa Kawamura
Telephone: +81-3-3285-7540
Facsimile: +81-3-3285-9819
MODEC, Inc.
Corporate Planning Department
Telephone: +81-3-6203-0200
Facsimile: +81-3-5512-1600

Marubeni Corporation
Corporate Communications Department
Telephone: +81-3-3282-4260
Facsimile: +81-3-3282-2331
Mitsui O.S.K. Lines, Ltd.
LNG Carrier Division
Offshore Business Group
Telephone: +81-3-3587-6239
Facsimile: +81-3-3587-7748