Mitsui to Participate in Subsea Support Vessel Business for Petrobras

Nov. 24, 2016

Main Contents

Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga), Mitsui O.S.K. Lines, Ltd. ("MOL", Head Office: Tokyo, President: Junichiro Ikeda), and AKOFS Offshore AS ("AKOFS", Head Office: Norway, President & CEO: Geir Sjøberg) have acquired a subsea support vessel, the Skandi Santos, from its previous owner, through Avium Subsea AS, a joint venture established by the three companies in Norway. The vessel operation under the new ownership launched on November 23.

Since 2010, AKOFS had been chartering the vessel to Petróleo Brasileiro S.A. ("Petrobras"), the Brazilian state-run oil company, for use in the installation of subsea facilities required for production in deepwater oil and gas fields off Brazil. At a time when there is a global need for the reduction of development and production costs in oil and gas fields, the highly efficient methods enabled by the Skandi Santos have helped Petrobras to reduce its development costs.

AKOFS is owned by Akastor ASA ("Akastor", Head Office: Norway, CEO: Kristian Røkke), one of the core companies of the Aker Group, a major Norway-based company engaged in various offshore activities. Mitsui and MOL have agreed with Akastor and AKOFS to pursue opportunities for increased collaboration based on a long-term perspective.

For production in deepwater oil and gas fields, in addition to Floating Production, Storage and Offloading (FPSO) unit—an existing area of business for Mitsui— subsea facilities are essential. Mitsui intends to use this project as a stepping stone to deeper involvement in this area, including subsea support vessels and subsea facilities. Together with the FPSO and drillship businesses, the subsea business will become another core component of Mitsui's activities in the field of offshore business, also envisioning the exploration opportunities to contribute to the development in Japan's exclusive economic zone.

1. Profile of Avium Subsea AS

Head office Oslo, Norway
Shareholders Mitsui: 25%
MOL: 25%
AKOFS: 50%
Business activities Ownership and leasing of subsea support vessel

2. Profile of AKOFS

Head office Oslo, Norway
Shareholders Akastor: 100%
Business activities Provision of vessel-based subsea well construction and intervention services to the oil and gas industry

3. Profile of Subsea Support Vessel, the Skandi Santos

Year built December, 2009
Area of operation Brazilian offshore oil and gas fields
Main types of operations Installation and maintenance of subsea facilities in deepwater oil and gas fields

Subsea support vessel: Skandi Santos

Subsea support vessel: Skandi Santos

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.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819
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