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- Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima) approved the accelerated expansion of the Eagle Ford Shale development in Texas, USA ("the Project"), which is currently owned through Mitsui's 100% subsidiary Mitsui E&P Texas LP ("MEPTX"), as well as the participation of Mitsui Oil Exploration Co. Ltd. ("MOECO") in the Project.
Mitsui initially acquired the interest in the Project in December 2011 and since then has participated in the development and production, approving its expansion in November 2012. Based on the high profitability outlook of shale oil production assisted by the recent firm oil prices, as well as the ability to focus the development on high productivity areas based on the expertise accumulated to date, Mitsui approved a further accelerated expansion of the Project as outlined below. It is expected that the total production and recoverable reserves throughout the project life will increase as a result of increase in peak production levels and extension of peak production period. Capital will be spent as drilling activities and facility expansion progress.
Peak Production | approx. 24,000 - 30,000 boed (barrels of oil equivalent per day) |
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Total Production | approx. 110 million boe |
Total Development Cost | USD 1.8 billion plus |
Life of Production | approx. 30 years |
Peak Production | approx. 26,000 - 32,000 boed |
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Total Production | approx. 135 million boe |
Total Development Cost | USD 2.2 Billion plus |
Life of Production | approx. 30 years |
Above figures are based on Mitsui's latest estimate
In addition, Mitsui has approved that MOECO, a subsidiary of Mitsui, will acquire 40 percent of MEPTX's equity and participate in the Project in October 2013. Mitsui aims to further enhance the value of the Project, leveraging MOECO's expertise and experience in the E&P business.
The Eagle Ford Shale area is located in Texas, USA, which is one of the major oil & gas consuming areas. Mitsui will aim to maximize the value and profitability of the Project through the accelerated expansion as well as the participation by MOECO, and expects the Project will continue to be one of its core businesses, contributing to its cash flow and net income over the long term.
Name of Company | Mitsui E&P Texas LP |
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Head Office | Houston, Texas, USA |
Establishment | June 24, 2011 |
Shareholders | As of September 2013 Mitsui & Co., Ltd: 100% October 2013 onwards Mitsui & Co., Ltd: 60% Mitsui Oil Exploration Co. Ltd: 40% |
Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.