MOECO Participates in Joint Geothermal Energy Development Study at Matsuo Hachimantai area in Iwate Prefecture, Japan

June 28, 2013 Project

Mitsui Oil Exploration Co., Ltd. (MOECO) is pleased to announce that it will participate in a joint geothermal energy exploration project at the Matsuo Hachimantai area in Iwate Prefecture in cooperation with Japan Metals & Chemicals Co., Ltd. (JMC), JMC Geothermal Engineering Co., Ltd.(Geo-E) and JFE Engineering Corporation (JFE Engineering).

MC, Geo-E, JFE Engineering and Hachimantai City conducted initial surveys which were then followed by New Energy and Industrial Technology Development Organization (NEDO) and have discovered the existence of a geothermal reservoir of over 250 degree Celsius in the area which is considered sufficient for the purposes of power generation.

In October 2011, JMC, Geo-E and JFE Engineering established a joint holding company, Iwate Geothermal Power Co., Ltd. (Iwate Geothermal) and launched a geothermal energy development study in cooperation with Hachimantai City. The study has been supported with a funding grant from the Japan Oil, Gas and Metals National Corporation (JOGMEC). MOECO will invest in Iwate Geothermal as a new project partner and jointly conduct further surveys and evaluation for geothermal development.

This year's activities include the drilling of an exploration well and the project aims to deliver electricity through a power plant with an approximate capacity of 7,000 kW. In parallel, administrative procedures are being undertaken to secure the necessary approvals from governmental and local authorities.

MOECO has been engaged in oil and gas exploration, development and production since its foundation in 1969. The Iwate Geothermal project is MOECO's third geothermal project following projects in the Amemasudake area of Hokkaido and the Oyasu area of Akita. MOECO will continue to focus on the development of geothermal energy as an important potential source of renewable energy and endeavor to expand its geothermal business both in Japan and internationally with its paramount consideration for the protection of the environment and with the consensus of affected local communities.

■ Shareholders of Iwate Geothermal Power Co., Ltd.

Company	Investment Ratio (%)
Japan Metals & Chemicals Co., Ltd.	16.675%
JMC Geothermal Engineering Co., Ltd.	16.665%
JFE Engineering Corporation	33.33%
Mitsui Oil Exploration Co., Ltd.	33.33%
TOTAL	100%

■ Location