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- Mitsui & Co., Ltd.
Investor Relations Division - Contact form
- Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819 - Contact form
Main Contents
Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Kenichi Hori) has decided to divest all of its interests owned through MOEX North America LLC ("MOEX NA"), a wholly owned subsidiary of Mitsui, which currently holds 20% of the interest in the Kaikias field in the US Gulf of Mexico, to Shell Offshore Inc. ("Shell", wholly owned subsidiary of Shell plc), operator of the Kaikias field, as of December 13 (US time), and has signed an asset purchase and sale agreement (the "Transaction"). Mitsui has also decided that MOEX NA shall be dissolved and liquidated accordingly and will no longer be a designated consolidated subsidiary of Mitsui.
MOEX NA acquired 20% of the interest in the Kaikias field in December 2016 and has been continuing production activities together with Shell since May 2018. This divestment is to be carried out as part of Mitsui's strategy to reconfigure its business portfolio.
Mitsui is proactively improving its business portfolio to achieve both stable energy supply and climate change response. We will continue to strengthen the competitiveness of our earning base and contribute to enhanced quality of life, and sustainable development of society by further promoting upstream energy business as one of our main business domains.
1. Overview of Kaikias project
| (1) Location | Offshore approx. 100km south-south-east from New Orleans, Louisiana |
|---|---|
| (2) Shareholding Structure | Shell (operator): 80% MOEX NA: 20% |
| (3) Net Reserves | approx. 12.7 MMBoe |
2. Overview of the buyer
| (1) Name | Shell Offshore Inc. | |
|---|---|---|
| (2) Location | New Orleans, Louisiana, U.S.A. | |
| (3) Description of business | Subsidiary of Shell plc, an international energy company | |
| (4) Major shareholders and ownership ratio | Shell plc: 100% | |
| (5) Relationship between Mitsui and the said company | Capital relationship | None |
| Personnel relationship | None | |
| Business relationship | None | |
3. Overview of the Transaction
| (1) Seller | MOEX NA |
|---|---|
| (2) Buyer | Shell |
| (3) Upstream assets | 20% of 4 offshore lease blocks in the US Gulf of Mexico |
| (4) Sale price | The price is not disclosed based on an agreement between the parties. |
| (5) Execution date | December 13, 2023 (US time) |
| (6) Closing date | December 13, 2023 (US time) |
4. Overview of change to Mitsui's designated consolidated subsidiary
Please scroll horizontally to look at table below.
| (1) Name | MOEX NA | ||
|---|---|---|---|
| (2) Location | Houston, Texas, U.S.A. | ||
| (3) Title and name of representative | Tomohiro Sunada (CEO) | ||
| (4) Description of business | Investment and asset management in Kaikias field | ||
| (5) Share capital | USD 132,145 thousand (approx. JPY 19,161 million converted at a USD/JPY rate of 145) | ||
| (6) Date of establishment | August 5, 2016 | ||
| (7) Major shareholders and ownership ratio | Mitsui: 100% | ||
| (8) Relationship between Mitsui and the said company | Capital relationship | MOEX NA is 100% owned by Mitsui | |
| Personnel relationship | Mitsui dispatches directors and employees to MOEX NA | ||
| Business relationship | Mitsui grants guarantees for MOEX NA's contract performance | ||
| (9) Operating results and financial positions of the said company for the last three years Converted at a USD/JPY rate of 145 |
|||
| Fiscal year ended | December 2020 | December 2021 | December 2022 |
| Total assets | USD 346 mil JPY 50,141 mil |
USD 375 mil JPY 54,347 mil |
USD 451 mil JPY 65,379 mil |
| Total shareholder's equity | USD 291 mil JPY 42,232 mil |
USD 299 mil JPY 43,302 mil |
USD 355 mil JPY 51,532 mil |
| Revenue | USD 28 mil JPY 3,996 mil |
USD 114 mil JPY 16,590 mil |
USD 149 mil JPY 21,578 mil |
| Operating income | USD (4) mil JPY (511) mil |
USD 33 mil JPY 4,821 mil |
USD 82 mil JPY 11,920 mil |
| Net income | USD (4) mil JPY (565) mil |
USD 7 mil JPY 1,070 mil |
USD 57 mil JPY 8,230 mil |
5. Outlook
Mitsui will record a profit through the Transaction, which has been reflected in Mitsui's forecast for the fiscal year ending March 2024 announced on October 31, 2023. It is planned that MOEX NA will be dissolved and liquidated after completing the required procedures in compliance with local laws following the completion of the Transaction.