Main

Participation of Mitsui & Co., Ltd., Marubeni Corporation and Mitsui O.S.K. Lines, Ltd. and Conclusion of Financing for Deepwater FPSO Chartering Project for TEN Oil Fields Offshore Ghana

Sep. 27, 2013


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


Main Contents

Mitsui & Co., Ltd. ("Mitsui," head office: Chiyoda-ku, Tokyo; president: Masami Iijima), MODEC, Inc. ("MODEC," head office: Chuo-ku, Tokyo; president: Toshiro Miyazaki), Marubeni Corporation ("Marubeni," head office: Chiyoda-ku, Tokyo; president: Fumiya Kokubu) and Mitsui O.S.K. Lines, Ltd. ("MOL," head office: Minato-ku, Tokyo; president: Koichi Muto) jointly announce that Mitsui, Marubeni and MOL have participated in a long-term charter business ("Project") operated by MODEC for the purpose of providing a floating production, storage, and offloading system (the "FPSO") for use in the Tweneboa, Enyenra, Ntomme ("TEN") oil fields offshore Ghana and a loan agreement for the Project was entered into today.

Mitsui, Marubeni and MOL invested in T.E.N. Ghana MV25 B.V. ("MV25"), a Dutch company established by MODEC, which will engage in FPSO leasing, operations and maintenance services. In August 2013, MV25 concluded the charter agreement with Tullow Ghana Limited ("Tullow Ghana"), the operator of TEN oil fields and a subsidiary of Tullow Oil plc. The charter contract initially runs for 10 years, with options for extension every year thereafter up to 10 additional years.

The loan agreement on a project finance basis was signed by the Japan Bank for International Cooperation ("JBIC"), Sumitomo Mitsui Banking Corporation (lead arranger), Bank of Tokyo-Mitsubishi UFJ, Ltd., Mizuho Bank, Ltd., ING Bank N.V., and ABN AMRO Bank N.V. This is JBIC's first project finance for the FPSO project in Ghana.

West Africa has seen numerous significant discoveries of expansive offshore oil fields in recent years, thereby giving rise to expectations of fresh demand for additional FPSO in the region. TEN oil fields are owned by a consortium of five companies including Tullow Ghana as operator, Anadarko Petroleum Corporation and Ghana National Petroleum Company. Construction of the FPSO through conversion of a VLCC (very large crude oil carrier) is planned to be completed and deployed in 2016 for the development of the TEN oil fields at water depths of about 1,500 meters.

Outline of FPSO

Oil processing capacity 80,000 barrels per day
Gas processing capacity 170 million cubic feet per day
Oil storage capacity 1,700,000 barrels
Mooring type External turret mooring (at a depth of 1,500 meters)

Controlling stake of MV25

Mitsui & Co., Ltd. 30.0%
Modec, Inc. 25.0%
Marubeni Corporation 25.0%
Mitsui O.S.K. Lines, Ltd. 20.0%

Map

Map

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 possessed by 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.
Corporate Communications Division
Yuki Sugiyama
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819
MODEC, Inc.
General Affairs Department
Telephone: +81-3-5290-1200
Facsimile: +81-3-5290-1505

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 Office
Telephone: +81-3-3587-6239
Facsimile: +81-3-3587-7748