MOECO acquires interest in EPSA for Onshore Block 54 in the Sultanate of Oman

April 5, 2006 Project

Mitsui Oil Exploration Co., Ltd. ("MOECO", Head office: Hibiya Central Bldg. 2-9, Nishi Shimbashi 1-Chome, Minato-ku, Tokyo, JAPAN / President: Mr. Yoshiyuki Kagawa) is pleased to announce that Mitsui E&P Middle East B.V. ("MEPME"), which is owned by Mitsui & Co., Ltd. (60%) and MOECO (40%), was awarded a 15% stake in the Exploration and Production Sharing Agreement covering onshore Block 54 in Oman (Total area: approximately 5,622 square kilometers) with its partners, Occidental Petroleum Corporation as the Operator (70%) and Liwa Energy Limited (15%), the investment and development company wholly owned by the Government of the Emirate of Abu Dhabi. MEPME and its partners are proceeding with the execution of the Exploration and Production Sharing Agreement with the Oman Ministry of Oil and Gas.

MOECO, through its interest in MEPME, has been focusing on Oman and seeking to build on existing relationships and geological knowledge accumulated through its current production and exploration activity in Blocks 9 and 27 in Oman (current gross production: approx. 88,000boed) to develop new opportunities. Given the identification of several interesting leads in the block and the presence of a major oil field development and infrastructure nearby, MOECO feels the block has significant crude oil potential.

MOECO is currently active internationally, with key assets in the Gulf of Thailand with a total daily production of approximately 80,000boed. MOECO has targeted on the Middle East as an important focus area for the E&P business and is actively seeking to expand its operations through the acquisition of assets and exploration activities. The acquisition of Block 54 represents a good example of MOECO's realization of its expansion strategy.