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JOGMEC Provides Equity Financing to
Mitsui’s LNG Project in the Republic of Mozambique
- Final Investment Decision for the Mozambique LNG Project-

June 19, 2019

Japan Oil, Gas and Metals National Corporation (“JOGMEC”) announced that it will provide further equity financing to JOGMEC-assisted Mitsui E&P Mozambique Area 1 Ltd. (“MEPMOZ”), a subsidiary of Mitsui & Co., Ltd. (“Mitsui”), coinciding with the announcement of the Final Investment Decision ("FID") for the Mozambique LNG Project.
MEPMOZ holds a 20% participating interest in the Rovuma Offshore Area 1 Block (“Area 1”). The operating 26.5% interest is held by Anadarko Moçambique Área 1 Limitada, with the remainder owned by ENH Rovuma Área Um, S.A. (an affiliated company of ENH) and subsidiaries of Indian companies and a Thai company.

In 2008, MEPMOZ acquired an interest in Area 1, which is located offshore to the north of Mozambique, and through subsequent exploration and assessment activities, discovered one of the world’s biggest natural gas fields. Since the initial exploration, JOGMEC has been providing its exploration equity financing to MEPMOZ, and, following the FID, will expand its support to cover up to 50% of the development and liquefaction expenditures incurred by MEPMOZ.

With the development target of the Golfinho/Atum gas field, this project is an integrated upstream-midstream project that encompasses all stages from natural gas production and liquefaction to LNG shipment. This project is expected to accelerate the diversification of Japan’s LNG import source and secure long-term LNG supply to Japan once production commences.

Furthermore, while the energy-wise relationship between Mozambique and Japan has been established through JOGMEC’s cooperative frameworks with Mozambican organizations in various areas including human resources development in the oil and gas sector, JOGMEC’s continued support will strengthen such relationship beyond the achievement of a historic milestone of the Mozambique LNG Project.

Background Information

1. Corporate Data

Corporate Data Mitsui E&P Mozambique Area 1 Ltd.
Shareholders Mitsui & Co., Ltd (Voting rights more than 50%)
JOGMEC (Voting rights less than 50%)

2. Contract Area

Rovuma Offshore Area 1 Block

3. Participating Interest

Anadarko Moçambique Área 1 Limitada (Operator) 26.5%
Mitsui E&P Mozambique Area 1 Limited 20.0%
ENH Rovuma Área Um, S.A. (ENH 100% owned company) 15.0%
ONGC Videsh Limited 10.0%
Beas Rovuma Energy Mozambique Limited 10.0%
BPRL Ventures Mozambique B.V. 10.0%
PTTEP Mozambique Area 1 Limited 8.5%

4. JOGMEC Assistance

Date of Approval June 17, 2019
Estimated Amount of Equity Financing approximately JPY 125 Billion
Note:
Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.

Location of Area 1 Block

Artist’s Rendering

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