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MODEC, Inc., Mitsui & Co., Ltd., Mitsui O.S.K. Lines, Ltd. and Marubeni Corporation to Proceed with the Ultra-Deepwater FPSO Chartering Project for Carioca Area of Brazilian Offshore Pre-Salt Oil Field

Dec. 18, 2013


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


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MODEC, Inc. ("MODEC," head office: Chuo-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: Fumiya Kokubu) have agreed that Mitsui, MOL and Marubeni will invest in a long-term charter business ("Project") currently promoted by MODEC for the purpose of providing a floating production, storage, and offloading system ("the FPSO") for use in the Carioca area of a pre-salt oil field off the coast of Brazil. The above 4 companies ("Companies") have entered into definitive agreements today.

Based on these agreements, Mitsui, MOL and Marubeni will invest in Carioca MV27 B.V. ("MV27"), a Dutch company established by MODEC, and the Companies will proceed with the Project jointly. MV27 has signed a long-term chartering agreement for the deployment of the vessel by the BM-S-9 Consortium - Petrobras (45%), BG Group (30%) and Repsol Sinopec Brasil S.A. (25%). The FPSO will be chartered for 20 years under this chartering agreement signed in December 2013.

The FPSO will be named "FPSO Cidade de Caraguatatuba MV27" and will be deployed to the Carioca area of the BM-S-9 block off the coast of Brazil in the third quarter of 2016. The area is part of a deepwater oil field located approximately 300 km south of Rio de Janeiro, Brazil. The oil is contained in the pre-salt layer approximately 5,000 m beneath the seabed.

The Project is the third occasion under which the Companies have collaborated to operate FPSOs for pre-salt oil fields.
The Schahin Group, the joint bidder with MODEC for this Project as the local partner in Brazil, has the option to invest up to 15% in MV27 prior to the commencement of the FPSO charter.

Outline of the FPSO

Oil processing capacity 100,000 barrels per day
Gas processing capacity 177 million cubic feet per day
Oil storage capacity 1,600,000 barrels
Mooring type Spread mooring (at a depth of 2,100 meters)

Shareholders of MV27

  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%

* Schahin Group has the option to invest up to 15% in MV27. If Schahin Group invests less than 15%, the ratio of the other shareholders will be adjusted on a pro-rata basis.

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.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
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
Media Relations Section
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