| June 16, 2009 |
| |
| Nippon Yusen Kabushiki Kaisha |
| Mitsui & Co., Ltd. |
| Kawasaki Kisen Kaisha, Ltd. |
| Japan Drilling Co., Ltd. |
| |
| |
| Participation in project for ultra-deepwater drillship to be chartered by Petrobras for |
| pre-salt exploration |
| |
| |
| Nippon Yusen Kabushiki Kaisha, Mitsui & Co., Ltd., Kawasaki Kisen Kaisha, Ltd., and Japan Drilling Co., Ltd. ("J4") announced today that J4 has agreed to participate in a project for an ultra-deepwater drillship to be chartered by Petroleo Brasileiro S.A. ("Petrobras") for pre-salt exploration. J4’s aggregate participation accounts for the majority share of the project company, Etesco Drilling Services, LLC. ("EDS") of the United States, which was established by Etesco Construções e Comércio Ltda. ("Etesco") of Brazil, and the capital contribution was completed on June 12th with another foreign company. |
| |
| In August 2008, EDS concluded, with Samsung Heavy Industries Co., Ltd. of South Korea, a construction contract for one drillship. After its delivery, scheduled for the end of January in 2012, EDS will start to provide charter service to Petrobras for a maximum of 20 years. |
| |
| Total investment in the project amounts to approximately US$820 million, and EDS concluded a loan agreement for US$650 million on June 12th. The drillship will be chartered by Petrobras for ultra-deepwater exploration in pre-salt fields with a water depth of up to 10,000 feet (approximately 3,000 meters). |
| |
| J4 seeks to contribute to Petrobras by participating in this drillship charter project for exploration for pre-salt oil and gas in pre-salt fields in Brazil. |
| |
| |
| Notice: |
| This press release includes forward-looking statements about K Line. These forward-looking statements are based on the current assumptions and beliefs of K Line in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors.
Such risks, uncertainties and other factors may cause K Line's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. This press release 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. |
| |
| |
| For inquiries on this matter, please contact |
Nippon Yusen
Kabushiki Kaisha |
Mitsui & Co., Ltd. |
Kawasaki Kisen
Kaisha, Ltd., |
Japan Drilling Co.,
Ltd. |
| Jun Katayama |
Mikako Sachigai |
Toshiaki Takasaki |
Kazuhiro Yoshinaga |
| TEL: +81-3-3284-5188 |
TEL: +81-3-3285-7596 |
TEL: +81-3-3595-5083 |
TEL: +81-3-5847-5862 |
| FAX: +81-3-3284-6382 |
FAX: +81-3-3285-9819 |
FAX: +81-3-3595-5001 |
FAX: +81-3-5644-5701 |
|
| |
| |
| EDS |
| Company Name |
Etesco Drilling Services, LLC |
| Establishment |
7 April, 2008 |
| Location |
United States |
| Maximum Equity |
US$170 million |
| Shareholders(*) |
| Nippon Yusen Kabushiki Kaisha |
33.70% |
 |
J4 share in total
76.48% |
| Mitsui & Co., Ltd |
21.78% |
| Kawasaki Kisen Kaisha, Ltd. |
20.00% |
| Japan Drilling Co., Ltd. |
1.00% |
| Etesco Construções e Comércio Ltda. |
|
|
11.76% |
| Mike Mullen Energy Equipment Resource Inc. |
|
|
11.76% |
|
|
| *: Each shareholder's investment is made through its 100% SPC. |
| |
| |
| Overview |
| Total Investment Amount |
Approximately US$820 million |
| Overview |
Charter service of ultra-deepwater drillship for Petrobras S.A. |
| Term |
Firm 10 years + Optional 10 years |
| Equipment |
Drillship for ultra-deepwater exploration; up to 10,000 feet water depth
(Length: 228 m, Width: 42 m) |
| Oeration & Maintenance |
Etesco group company |
|
| |
| |
 |