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Signing of Heads of Agreement with Chevron Australia for the Purchase of LNG

December 08. 2005

Osaka Gas Co., Ltd (President: Hirofumi Shibano) and Chevron Australia Pty Ltd (Managing Director: James Johnson) signed the Heads of Agreement for the sales and purchase of liquefied natural gas (LNG) produced from the Gorgon Project located at North West Australia.

The Gorgon Project involves the production of natural gas consisting primarily of Gorgon gas and Jansz gas offshore North West Australia which account for approximately 1.1 trillion cubic meters of vast gas reserves, and liquefaction of the natural gas at a production facility (2 liquefaction trains, 10MTPA) to be constructed at Barrow Island in Western Australia. The LNG is planned to be supplied to Japan and other Asian Pacific markets including North America .

With this agreement as a foothold, Osaka Gas and Chevron Corporation will study collaborations in various areas of the LNG business. As part of this collaboration, our company is currently discussing the detailed conditions of equity acquisition from the Gorgon project.

◇ Basic Terms and Conditions
(1) Seller: Chevron Australia
(2) Buyer: Osaka Gas Co., Ltd
(3) Contract Term: 25 years from FY 2010
(4) Contract Volume: 1.5MTPA
(5) Delivery: FOB (Free on Board)

◇Planned location of Project

◇ Outline of Chevron Australia
Company Name: Chevron Australia Pty Ltd (Australian Corporation)
Location: Perth Australia
Managing Director: James Johnson ( Managing Director )
Stock Holder: Chevron Australia Holdings Pty Ltd, ultimately a 100% controlled subsidiary of Chevron Corporation

◇ Outline of our company
Company: Osaka Gas Co., Ltd
Location: 4-1-2, Hiranomachi, Chuo-ku, Osaka
President: Hirofumi Shibano
LNG Import by Country (2004 actual, 10,000 tons): Brunei (80), Indonesia (291), Australia 98), Malaysia (83), Qatar (42), Oman (62) Total: Approx. 6.56 million tons.

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