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Mitsui & Co., Ltd. ("Mitsui", Head Office: Chiyoda-ku, Tokyo, President and CEO: Masami Iijima) has reached an agreement with BP p.l.c. ("BP"), concerning the acquisition of the British oil major`s working interest in the Alba oil field and the Britannia gas and condensate field in the UK North Sea area. The sale and purchase agreement was signed on Jun 22, 2012. The completion of the transaction is subject to regulatory and other licensee approvals. This is Mitsui's first entry into producing assets in this area, adjacent to the massive European oil and gas market.
The Alba oil field and Britannia gas and condensate field are located approximately 200km northeast of Aberdeen, Scotland, in the UK North Sea area. Both fields have continued stable and safe operations since starting production in 1994 and 1998 respectively, and are expected to make a contribution to earnings by joint operation with technically and financially sound operators and partners. Mitsui will work to maximize the value of both assets together with its partners and expand its energy business portfolio in the region.
Energy and mineral resources business is one of Mitsui's core business areas. Mitsui will continue to acquire oil and natural gas assets in order to establish a well-balanced business portfolio and to contribute to the stable supply of energy resources in the region.
|Buyer||Mitsui E&P UK Limited (100% subsidiary of Mitsui)|
|Seller||Arco British Limited (100% subsidiary of BP)|
|Acquired Assets||Alba oil field 13.30%
Britannia gas and condensate field 8.97%
|Purchase Price||Approx. US$280million(Note) (Approx. J¥22.4bil.)|
Note: Under the UK tax regime, approximately 60% of the purchase price can be allocated to UK tax allowances.
|Concession||Alba oil field||Britannia gas and condensate field|
|Operator||Chevron||Chevron and ConocoPhillips|
|Location||Approx. 200km northeast of Aberdeen, Scotland|
Note: barrels of oil equivalent
|Company Name||BP p.l.c.|
|Listed Stock Exchange||London Stock Exchange, NY Stock Exchange|
|Business Activities||Oil and gas exploration and production, refinery, retail, etc.|
|Consolidated Assets*||Approx. US$111billion|
|Daily Production*||Approx. 2352thousand barrels|
* Financial year 2011
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.