MOECO signed a Heads of Agreement for gas to power project in Vietnam

July 23, 2009 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 MOECO, Vietnam Oil and Gas Group (PetroVietnam), PetroVietnam Exploration & Production Company (PVEP), Chevron Vietnam Ltd. (Chevron) and PTT Exploration and Production Limited (PTTEP) today signed a Heads of Agreement (HOA) regarding Front End Engineering and Design (FEED) for natural gas development in Blocks B & 48/95 and Block 52/95 offshore southwestern Vietnam.

Offshore southwestern Vietnam, MOECO has interests in the blocks through its two subsidiaries. Moeco Vietnam Petroleum Co., Ltd. (MVP) holds a 25.62% interest in the blocks B & 48/95 and Moeco Southwest Vietnam Petroleum Co., Ltd. (MSVP) holds a 19.6% interest in the block 52/97.

Under the terms of the agreement, the partners reached alignment on the key commercial and technical principles required to allow the project to enter the Front End Engineering and Design (FEED) phase. Principal design work will be commenced mainly by the operator, Chevron. Total cost for the gas to power project is estimated at around US$ 4 billion.

The natural gas produced from the area is to be delivered through PetroVietnam to power complexes at O Mon in the Municipality of Can Tho. Maxium total natural-gas production is expected to be 500 million cubit feet per day within the first five years, which has a potential to increase Vietnam's current electricity-generating capacity by up to 20%. Thus the project is expected to provide a major boost for electricity generation in Vietnam.