Idemitsu-Mitsubishi JV to Buy East Timor LPG

Tokyo, Sept 10, 2007 (Jiji Press) – A joint venture set up by Japan’s
Idemitsu Kosan Co. and Mitsubishi Corp. said Monday it
has signed an agreement to buy liquefied petroleum gas produced at a
gas field off East Timor.

The agreement, which will take effect for a one-year period starting
in January, allows the joint venture, Astomos Energy Corp., to buy
1.2 million tons of LPG from the Bayu-Undan gas project led by U.S.
oil giant ConocoPhillips.

Astomos Energy is the first Japanese LPG wholesaler that has signed a
term contract to buy LPG from the Bayu-Undan field, located about 250
kilometers off the south coast of East Timor, the company said. It
plans to extend the contract for 2009 and later.

The move is designed to lower Astomos Energy’s reliance on the Middle
East for LPG supply as over 80 pct of its annual LPG imports that
total 3.2 million tons come from the region. The contract will help
push down the ratio to some 55 pct.

Astomos Energy is 51 pct owned by Idemitsu, a top Japanese oil
refiner, and the rest by Mitsubishi, a major Japanese trading house.

By Jiji Press, (c)
Jiji Press

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