Message from the President ITOCHU Oil Exploration Co., Ltd. (CIECO) was established in 1972 for the purpose of exploring and developing an E & P block in Irian Jaya, Indonesia. The first exploratory well we invested in successfully encountered oil, which subsequently resulted in commercial production a year later. CIECO has since then played a central role in upstream energy businesses in ITOCHU Group, thereby prompting expansion of the Group's business area and profits. Through participation in a number of E & P projects worldwide, our activities have contributed to secure stable and continuous energy resources for Japan. In March 2004, CIECO divested its upstream oil & gas assets to its parent company ITOCHU Corporation to facilitate potential large-scale investment opportunities and to effectively manage and operate the Group's upstream oil & gas assets. This strategic reorganization has enabled CIECO to develop and enhance its technical and management expertise in close consort with ITOCHU's Energy Division. Our business encompasses managing the Group's upstream oil & gas assets as well as seeking and evaluating new opportunities by fully utilizing the Group's global business network. The ITOCHU Group currently invests in a diversified portfolio of producing assets in the U.K. North Sea, Algeria, Azerbaijan, Qatar, Oman, Russia, U.S., and Australia. In addition, we strive to acquire further prime energy assets to achieve our objective to double the Group's current total net production by 2015. In recent years, reducing the consumption of fossil fuels to suppress the emissions of greenhouse gases has been a center of attention. In the meantime, the economic growth in developing countries would lead to a gradual increase in the global consumption of oil and gas. We consider that securing inexpensive, stable energy supplies while minimizing the burden on the environment is an imminent issue to improve the quality of life in developing countries and to maintain sustainable growth of the global economy. We aim to tackle this challenge and will continue to actively promote the Group's business on the development of hydrocarbon energy resources to meet expectations of our stakeholders. President & C.E.O. July, 2010