Receipt of BP's invoice regarding the oil spill incident in the Gulf of Mexico

February 2, 2011 Project

In connection with the oil spill incident at the Deepwater Horizon rig in the Gulf of Mexico that began in April 2010 (the "Incident"), MOEX Offshore 2007 LLC ("MOEX Offshore"), a wholly owned subsidiary of MOEX USA Corporation, which in turn is wholly owned by Mitsui Oil Exploration Co., Ltd. ("MOECO"), has received 9 invoices for reimbursement of costs associated with the Incident, as of the end of December, 2010, from BP Exploration and Production Inc. ("BP"), which is the operator of the relevant project. MOEX Offshore assumes on the basis of the invoices that, with respect to the costs paid in connection with the Incident through the end of December, 2010, the amount corresponding to MOEX Offshore's 10% interest would be approximately US$ 1,600 million.

Given there are numerous ongoing investigations to determine the facts and circumstances surrounding the Incident and given there is uncertainty at this time as to whether MOEX Offshore will have an obligation to make payment, MOEX Offshore has withheld payment of the invoices. It is expected that MOEX Offshore will continue to receive invoices from BP. MOEX Offshore expects to continue to withhold payment while it continues to examine the situation.

MOEX Offshore has informed MOECO that, given MOEX Offshore's 10% non-operating interest in the relevant lease, in light of the ongoing investigations referenced above, MOEX Offshore is currently unable to estimate its potential liability for the costs associated with the Incident or to determine how its affiliates might be affected. Thus, at this time MOECO is unable to determine the impact, if any, the Incident might have on its financial position or cash flow.