MOECO participates in an ultra-deep gas exploration project in the Gulf of Mexico

July 24, 2007 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 it has entered into Acquisition and Participation Agreement with BP Exploration & Production Inc. ("BP") on the 29th of June 2007 to participate in an ultra-deep gas exploration project in the Gulf of Mexico ("GOM") which is being actively pursued by BP.

The offshore blocks are located in the High Island Area in GOM shallow water. MOECO decided to participate in the project based upon its evaluation of the prospect which BP's GOM technical team has conducted extensive study and research.

Japan Oil, Gas and Metals National Corporation ("JOGMEC") has agreed to provide equity capital finance for MOECO's share of the drilling costs payable under the Acquisition and Participation Agreement. An exploratory well is scheduled to be drilled from September 2007 by BP as the operator and as a result of the participation in such well, interests in the project will be BP (75%), MOECO (15%) and other (10%).

MOECO's Participation in this project provides an excellent opportunity to further expand its business in the U.S. Additionally, a successful discovery of a significant gas field in the ultra deep zone would create a strategic core business for future expansion.