REG-Mitsui & Co Ltd Final Investment Decision for the Waitsia Gas Project Stage 2 Development

Mitsui & CoAnnouncement

23/12/2020 08:30

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Final Investment Decision for the Waitsia Gas Project Stage 2 Development

 

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note
Programme

Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO:
Tatsuo Yasunaga), together with its partner Beach Energy Limited has made a
final investment decision subject to necessary government approvals, as the
operator of a gas development project relating to the Waitsia gas field
(“Waitsia”) in the state of Western Australia, called the Waitsia Gas
Project Stage 2 Development (“Stage 2 Development”). Mitsui holds a 50%
interest in the Waitsia through AWE Pty Ltd (“AWE”).

In 2018, Mitsui acquired AWE which has an interest in Waitsia, located onshore
approximately 350 km north of Perth, Western Australia. The acquisition was
primarily to expand Mitsui’s competitive oil and gas portfolio in Australia
and to gain operatorship capabilities.

The Waitsia discovery is one of the largest onshore natural gas fields in
Australia. In addition to the increase of reserves confirmed after Mitsui’s
acquisition of AWE, securing access to LNG markets, through the LNG facilities
owned by the North West Shelf Joint Venture (“NWS JV”)(1) in which Mitsui
participates, enabled the Stage 2 development to progress.(2)

The aim of the Stage 2 Development is to contribute to the stable supply of
LNG to meet increasing global demand as well as to continue supplying domestic
gas for use by Western Australian manufacturers and consumers. It will also
contribute to a low-carbon society by promoting fuel conversion to gas in the
medium term.

Through the Stage 2 Development, gas production capacity of 250 TJ/day will be
added to the current Stage 1 capacity of 20 TJ/day. The Stage 2 Development
involves the drilling of additional wells and the construction of a new gas
plant with a gross capital expenditure of A$768mil (JPY59.3 billion), of which
A$384mil (JPY 29.7 billion) net to Mitsui. The commencement of production from
the Stage 2 Development is planned in the 2(nd) half of 2023.

Waitsia creates strategic value by enhancing Mitsui’s function as an
operator in the broad range of energy business. The project utilizes
Mitsui’s comprehensive strengths, and takes a lead in creating value across
the gas supply chain. It also enables Mitsui to develop further business
opportunities by utilizing its accumulated knowledge and expertise in areas
such as gas value chain and carbon management.

The impact of this decision on Mitsui’s profit for the year ending March
2021 is expected to be minor.

[Participating Interest Holders of Waitsia]
 AWE Pty Ltd (operator)  50%  
 Beach Energy Limited    50%  


For inquiries on this matter, please contact:

Mitsui & Co., Ltd.

IR Div. TEL: +81-3-3285-7657

Corporate Communications Div. TEL: +81-80-5912-0321

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.


(1) Mitsui has a 50% equity interest in Japan Australia LNG (MIMI) Pty Ltd,
which holds a 16.67% participating interest in the NWS JV.

(2) A Gas Processing Agreement between NWS JV and the Waitsia Joint Venture
with a parent company guarantee made by Mitsui in favor of NWS JV was signed
to secure the right to use the LNG plant to liquefy and export Waitsia gas.



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