Oil and natural gas exploration, development and production

The Exploration and Production Unit, together with our subsidiary Mitsubishi Corporation Exploration Co., Ltd., is involved with the exploration, development and production of oil and natural gas projects around the world. While the price of crude oil and natural gas continues to fluctuate at very high levels, every company in the world has a strong desire to participate in exploration (upstream) rights, and MC is in a competitive environment where the acquisition of high-quality exploration assets is difficult. However, MC is adding to its existing upstream businesses in areas such as West Africa (Gabon, Angola), and the U.S. Gulf of Mexico, and acquiring new rights in the UK-administered area of the North Sea at Tristan North West Gas Field, the K2 oil field in the U.S. Gulf of Mexico and the Kangean oil & gas field in Indonesia. We have invested in Indonesian energy company P.T. Medco Energi Internasional. Also, we consider North Africa, a region with abundant reserves, an important region for the company and are in the process of acquiring exploration and development interests in oil fields in Libya and Tunisia.

The petroleum/gas exploration and production business is one of the core businesses of the medium-term management plan (INNOVATION 2009). This business unit and Mitsubishi Corporation Exploration Co., Ltd. actively expand business operations to ensure the profitability of our upstream businesses. We plan to maintain and expand production capacity through additional exploration and development activities in our existing upstream regions, such as West Africa and the U.S.Gulf of Mexico. Furthermore, it is our policy to steadily carry out exploration and development in North Africa and the UK-administered area of the North Sea, and Indonesia with the goal of beginning production in these regions. It is our policy to maintain and expand our ownership of reserves and our equity share of production such as by continuing to actively purchase production and development assets, and acquire companies.