Mitsubishi Corporation

Press Room

January 31, 2011

Acquisition of Working Interest in Senoro-Toili Natural Gas Field in Indonesia

Mitsubishi Corporation (MC) is pleased to announce that it has acquired all the shares of Tomori E&P Limited, which owns a 20% working interest in the Senoro-Toili natural gas field, from PT. Medco Energi Internasional Tbk, Indonesia’s largest private-sector energy company. The purchase price is US$260 million (approx. 21.5 billion yen). The Senoro-Toili natural gas field is located in Central Sulawesi Province, Indonesia.
 
 
1. Reason for Share Purchase
 
The Senoro-Toili field is owned 50:50 by wholly owned subsidiaries of PT. Pertamina (Persero), Indonesia’s state-owned oil and gas company, and PT. Medco Energi Internasional Tbk. MC acquired a 20% working interest from PT. Medco Energi International Tbk through the acquisition of Tomori E&P Limited. As a result, ownership of the field is now split as follows: PT. Pertamina (Persero) subsidiary (50%), PT. Medco Energi Internasional Tbk subsidiary (30%), and MC subsidiary Tomori E&P Limited (20%).
 
The field began producing crude oil (approx. 1,900 B/D) in 2005, and will commence development work with the aim of commencing natural gas production in 2014. Natural gas produced at the field will be partially supplied within Indonesia. The remaining amount of the natural gas (approx. 250 million standard cubic feet per day, approx. 1.5 million tons/year LNG equivalent) will be supplied to PT. Donggi-Senoro LNG (PT DSLNG) and contribute to approx. 75% of the required volume for producing LNG that will be exported from the second half of 2014 to Japan and South Korea. PT DSLNG, an LNG production and sales company (approx. 2.0 million tons/year), is 59.9% owned by Sulawesi LNG Development Limited (MC 75%, Korea Gas Corporation 25%), with a PT. Pertamina subsidiary and a PT. Medco Energi International Tbk subsidiary owning the remaining 29% and 11.1%, respectively.
 
With the acquisition of this working interest, MC will create synergies through the activities of the Donggi-Senoro LNG Project, by being involved in the LNG value chain extending from upstream to downstream. MC and its partners in PT Donggi-Senoro LNG recently made the final investment decision regarding the Donggi-Senoro LNG Project. This will help to ensure stable LNG supplies and raise the value of the entire project. Together with development of the Kangean oil and gas field and operation of Tangguh LNG Project, which MC is also participating in, this move will contribute even further to Indonesia’s fast-growing economy.
 
 
2. Outline of Company Acquired (Tomori E&P Limited)
 
(1) Company name
Tomori E&P Limited
(2) Location
London, United Kingdom
(3) Representative
Before acquisition
Lukman Ahmad Mahfoed, Director
Eka Satria, Director
After
acquisition
Takanobu Shimura, Director
Makoto Tsurusaki, Director
(4) Business
Development, production and sales of crude oil and natural gas
(5) Capital
US$260 million
(6) Established
13 November 2009
(7) Shareholder and shareholding
Before acquisition
PT. Medco Energi Internasional Tbk 100%
After
acquisition
Mitsubishi Corporation 100%
(8) Relationship between MC and Tomori E&P Limited
There were no capital, personnel or trading relationships.
(9) Consolidated operating results and consolidated financial position for the most recent three years of Tomori E&P Limited
(‘000US$:As of end of December 2009)
 
1. Consolidated net assets : 0
2. Consolidated gross assets : 0
3. Consolidated net assets per share : 0
4. Consolidated sales 0
5. Consolidated operating profits : 0
6. Consolidated current profits or ordinary profits : 0
7. Consolidated net profits : 0
8. Consolidated net profits per share : 0
9. Dividend per share : 0
 
 
 
3. Outline of Seller (PT. Medco Energi International Tbk) (As of 31 December 2009)
 
(1) Company name
PT. Medco Energi International Tbk
(2) Location
Jakarta, Indonesia
(3) Representative
Darmoyo Doyoatmojo, President Director
(4) Business
Exploration & production of oil and gas
(5) Capital
Approx. US$0.1 billion
(6) Established
9 June 1980
(7) Net assets
Approx. US$0.7 billion
(8) Total assets
Approx. US$2.0 billion
(9) Shareholders and shareholdings
Encore Energy 50.7%, general shareholders 37.6%, treasury stock 11.7%
(10) Relationship between MC and PT. Medco Energi International Tbk
Capital
Mitsubishi Corporation owns a 39.4% equity interest in Encore Energy, which owns a 50.7% stake in PT Medco Energi International Tbk
Personnel
Mitsubishi Corporation has one representative on the Board of Commissioners
Business
Purchase of crude oil produced from the fields owned by PT Medco Energi International Tbk and joint operating through the Donggi-Senoro LNG Project.
 
 
 
4. Outlook
 
This transaction will have a negligible impact on MC’s consolidated operating results for the year ending March 2011. MC will make a further announcement regarding the impact on consolidated performance from next fiscal year as soon as details are determined.
[Project Schematic]
[Project Schematic]

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