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Mitsui to Participate in Ibri, Sohar-3 Power Projects in Oman

Jan. 4, 2016


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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), together with the Saudi Arabian power company ACWA Power ("ACWA") and Dhofar International Development and Investment Holding Co. SAOG ("DIDIC") of Oman, as a consortium ("Consortium"), submitted a bid on August 30, 2015 for the contract for the Ibri, Sohar-3 power generation projects in response to a call for bids by Oman Power and Water Procurement Company SAOC ("OPWP"). Subsequent to this, the Consortium has now received a letter of award from OPWP to develop the Ibri, Sohar-3 power generation projects.

Demand for electric power in Oman is increasing rapidly because of the economic growth driven by the oil and gas sector. Mitsui, as the lead investor with a 50.1% shareholding and the managing member of the Consortium, will help to meet that demand by newly constructing two natural gas-fired combined cycle power plants with a total capacity of 3,150MW. The sites will be in Ibri (1,450MW), and Sohar (1,700MW), which are both located in northern Oman. Mitsui will operate both plants and sell electric power under a 15-year power purchase agreement with OPWP. The power plants will be supplying approximately 30% of the electricity that will be consumed in the Muscat area once the commercial operation is achieved.

Mitsui has a notable track record in the upstream oil and gas sector in Oman through its participation in onshore oil and gas production and development projects, as well as the Oman LNG project. The Ibri, Sohar-3 power generation projects mark Mitsui's further involvement in developing one of the largest power plants in the Middle East region, together with key downstream infrastructure in Oman, after being awarded the Salalah-2 power project in March 2015, and the Liwa Plastic Industries Complex project in December 2015. Mitsui will use its extensive business operation management know-how gained through its considerable experience in the operation of overseas power generation projects and its track record in Oman to contribute to the successful development and operation of the projects. These power generation projects represent one of the primary focuses of Mitsui's infrastructure business, and Mitsui will continue to strive to win contracts for quality projects in this area.

Project Overview

Investors Mitsui (50.1%), ACWA (44.9%), DIDIC (5%)
Description Construction, maintenance and operation of power plants (BOO system)
Plant capacity 3,150MW (Ibri: 1,450MW, Sohar: 1,700MW)
Buyer of electric power OPWP
Total project costs Approx. USD 2.3 billion (approx. ¥276 billion)
Schedule Feb. 2016: Signing of project agreements, including electric power sales contract
Jan. 2019: Sohar-3 power plant operational
Apr. 2019: Ibri power plant operational
Construction site Ibri Industrial Area, Sohar Industrial Area (both in the northern Oman)

ACWA

Company name International Company for Water and Power Projects
(ACWA Power International)
Headquarter location Riyadh, Saudi Arabia
Representative Mohammad Abdullah Abunayyan (Chairman)
Main business Power, Water
Establishment 2004

DIDIC

Company name Dhofar International Development & Investment
Holding Company S.A.O.G (DIDIC)
Headquarter location Salalah, Oman
Representative Sheikh Khalid bin Mustahail Ahmed Al Mashani(Chairman)
Main business Bank, Insurance, Port operation, Basic industry
Establishment 1987

Location Map

Location 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.
Investor Relations Division
Telephone: +81-3-3285-7910
Facsimile: +81-3-3285-9821
infoTKADZ@mitsui.com
Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-3-3285-7596
Facsimile: +81-3-3285-9819