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Acquisition of Equity Interest in Qalhat LNG

May 24. 2006

Itochu Corporation, Mitsubishi Corporation, and Osaka Gas reached an agreement today with the Government of the Sultanate of Oman for their partial equity acquisition of Qalhat LNG S.A.O.C.. According to the Share Transfer Agreement which was signed today by the parties concerned, each of the three companies will acquire 3% of the equity shareholding of Qalhat LNG.

Qalhat LNG, a company incorporated in Muscat , Oman , is the promoter of the second LNG project in Oman , following the Oman LNG project in the country. With the production capacity of 3.3 million tons of LNG per annum, the company has shipped LNG since December 2005. The three Japanese companies have already entered into respective long-term LNG supply agreements with Oman .

With the acquisition of equity interests in Qalhat LNG, the three Japanese companies expect that they would be positioned to build stronger relationship with Oman, thereby strengthening their business involvement in the LNG upstream business and subsequently, to achieving greater stability in their LNG procurement activities.

About Qalhat LNG S.A.O.C.
The company is headquartered in Muscat in the Sultanate of Oman. The share-holding of the company after the acquisition will be composed of the following parties;
Oman Government (46.84%), Oman LNG (36.8%), Union Fenosa Gas (7.36%), Itochu Corporation (3%), Mitsubishi Corporation (3%), Osaka Gas Australia Pty., (3%).*

(*) A wholly-owned subsidiary of Osaka Gas incorporated in Australia.

Long-term LNG supply contracts with Oman
Delivery since
Volume (tons p.a.)
Contract term
Qalhat LNG
Mitsubishi Corp. 2006 800,000 15 years
(5 year extension optional)
Osaka Gas 2009 800,000 17 years
Oman LNG
Osaka Gas 2000 660,000 25 years
Itochu Corp. 2006 700,000 20 years

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