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North West Shelf Project: Final Investment Decision Reached on Greater Western Flank Phase 2 Project

Dec. 11, 2015


Mitsui & Co., Ltd.
Mitsubishi Corporation


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo; President and CEO: Tatsuo Yasunaga) and Mitsubishi Corporation ("Mitsubishi", Head Office: Tokyo; President and CEO: Ken Kobayashi) are pleased to announce that the North West Shelf Project (NWS Project), in which Japan Australia LNG (MIMI) Pty. Ltd. ("MIMI", a Mitsubishi and Mitsui fifty-fifty joint venture) has a capital participation, has made a final investment decision on the Greater Western Flank Phase 2 (GWF-2) gas fields development project off the north-west coast of Australia.

The GWF-2 Project will involve the drilling of eight natural gas production wells in the six gas fields within the development area. The plan calls for connecting these wells to the existing Goodwyn A platform via a 35-kilometer subsea pipeline. The natural gas produced by the project will be transported to the Karratha Gas Plant, where it will be converted into liquefied natural gas for shipment and sale to customers or will be provided as domestic gas.

Total investment for the project is expected to be approximately US$2.0 billion (Operator's estimate; 100% cost), with MIMI's equity share amounting to approximately US$330 million. Recoverable reserves are estimated at 1.6 trillion cubic feet (Tcf) of natural gas and 43 million barrels of condensate. Production is scheduled to begin in the second half of 2019.

Over 25 years have passed since the NWS Project began to produce LNG in 1989. The development of previously discovered but undeveloped gas fields, such as the GWF-2 Project, will make a major contribution to enhancing the value of the NWS Project.

Mitsui and Mitsubishi will continue to work through MIMI to ensure the safe and reliable operation of the NWS Project, while also contributing to the stable supply of energy through the diversification of energy supply sources and the reinforcement of both companies' LNG marketing capabilities.

NWS JV Shareholdings

MIMI 16.67%
BHP Billiton Petroleum (North West Shelf) Pty. Ltd. 16.67%
BP Developments Australia Pty. Ltd. 16.67%
Chevron Australia Pty. Ltd. 16.67%
Shell Australia Pty. Ltd. 16.67%
Woodside Energy Ltd. (Operator) 16.67%

Profile of MIMI

Name Japan Australia LNG (MIMI) Pty., Ltd
Founded 1985
Capital structure Mitsui : 50%
Mitsubishi : 50%
Business outline Gas and oil exploration, development and production, and the liquefaction, transportation and marketing of natural gas
Head office Perth, Western Australia
Directors CEO Motohiro Desaki (seconded from Mitsui ),
Deputy CEO Gen Kunihiro (seconded from Mitsubishi)
Eight directors (four each from Mitsui and Mitsubishi)
Employees Approx. 50

Location of development area

Location of development area

Goodwyn A Platform

Goodwyn A Platform

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
Miyuki Shiga
Telephone: +81-3-3285-7540
Facsimile: +81-3-3285-9819