Final Investment Decision for the Vietnam Block B Gas Field Development

March 29, 2024 Project

Mitsui Oil Exploration Co., Ltd. ("MOECO") has made a final investment decision and concluded related contracts together

with its business partners regarding an integrated development project ("Block B Project") encompassing an upstream gas

field and a pipeline linking it to a gas-fired thermal power plant complex, on March 28 (Vietnam time). The business partners

include the Vietnam Oil and Gas Group ("PVN"), a Vietnamese national oil and gas company, PetroVietnam Exploration

Production Corporation Limited ("PVEP"), PetroVietnam Gas Joint Stock Corporation ("PV Gas"), and PTT Exploration and

Production Public Company Limited ("PTTEP"), a Thai national oil and gas company.

The Block B Project will be the next-generation core business for MOECO. MOECO has been participating in this highly

competitive project from the exploration phase and the project is expected to yield stable earnings in the long-term.

Production capacity is estimated to be 490 million cubic feet per day, with production scheduled to begin by the end of 2026.

In addition to the development of the upstream gas field, the Block B Project will also include a midstream development

for gas transportation. MOECO subsidiaries' share of development cost for the project, which mainly consists of offshore

installations and pipeline construction, will be approximately USD 740 million (approximately JPY 110 billion)*1..

MOECO has positioned the Southeast Asia area as its focus area, where it has many years of experience in the upstream

oil and natural gas business. MOECO aims to contribute to clean energy supply and energy transition in the region through

the development of gas fuel supply for power generation of the Block B project.

*¹ This cost only includes CAPEX until commencement of production. MOECO's interest in the upstream business

(approx. USD 560 mil) is through joint investment companies with JOGMEC and the midstream business (approx. 180 mil)

is through MOECO's wholly owned subsidiary.

【Upstream gas field development business interest holders】　

Name	Ratio*2
Vietnam Oil and Gas Group ("PVN", operator)	42％
PetroVietnam Exploration Production Corporation Limited ("PVEP", a subsidiary of PVN)	27％
MOECO Vietnam Petroleum Co., Ltd. ("MVP") / MOECO Southwest Vietnam Petroleum Co., Ltd. ("MSVP"), (subsidiaries of MOECO, each a joint venture with JOGMEC*3)	23％
PTTEP Southwest Vietnam Company Limited / PTTEP Kim Long Vietnam Company Limited (each a wholly owned subsidiary of PTTEP)	8％

【Midstream business interest holders】

Name	Ratio*2
PetroVietnam Gas Joint Stock Corporation ("PV Gas", a subsidiary of PVN)	51％
PVN (operator)	29％
MOECO Southwest Vietnam Pipeline B.V. ("MSPL") (a wholly owned subsidiary of MOECO)	15％
PTTEP Southwest Vietnam Pipeline Company Limited (a wholly owned subsidiary of PTTEP)	5％

*² Figures have been rounded to the nearest whole number

*³ MVP: MOECO 58.74% / JOGMEC 41.26%, MSVP: MOECO 61.28% / JOGMEC 38.72%

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