| ITOCHU's Activities U.K. NORTH SEA Hudson, Hutton, N.W.Hutton, Alba, Caledonia
In 1992, ITOCHU, Taiyo Oil (an independent Japanese oil refining & marketing company), and JNOC established "CIECO North Sea Limited" in Japan and its wholly-owned subsidiary "CIECO Exploration and Production (UK) Limited (CIECO E&P UK)" in the United Kingdom. Upon the dissolution of JNOC in 2005, ITOCHU bought JNOC's shares in CIECO E&P UK, which increased ITOCHU's shareholding to 80%. CIECO E&P UK has interests in three oil fields in the North Sea (Hudson, Hutton and NW Hutton), together with their respective Brent System Pipeline and Sullom Voe Terminal ownership. Commercial production from the Hudson field, in which CIECO E&P UK holds a 25.77% interest, commenced in July 1993. This constituted the first phase of a novel two-step development plan, with accelerated offshore liftings from an FPSO followed in early 1995 by the next phase in which subsea production and water injection wells were tied back to the Tern Platform allowing offtake via the Brent System to the export terminal at Sullom Voe. Development of an additional horizon and a neighboring structure in the field is also anticipated. Current production at the Hudson Field is approximately 5,300 BOPD. Hutton and NW Hutton, in which CIECO E&P UK has an 8.63 % and 25.77 % interest respectively, have already ended their productive lives. While the decommissioning process has been completed in the former, it is still underway in the latter. Through its interests in the Hutton and North West Hutton fields, CIECO E&P UK also has an ownership interest of approximately 2% in the 36" Brent System Trunk Pipeline and the associated facilities at the Sullom Voe Terminal. The Brent System facilities have a nominal capacity of one million barrels of oil per day. The ownership interest in the Brent System allows for the cost-effective transport of Hudson crude to the Sullom Voe Terminal by ITOCHU Corporation. In June 2005, ITOCHU established a wholly-owned subsidiary in the United Kingdom gCIECO Energy (UK) Limited (CIECO Energy UK)h in the United Kingdom. CIECO Energy (UK) acquired Baytrust Oil Exploration Limited and Union Oil Exploration Limited, which had an 8% interest in the Alba field and a 10.06% interest in the Caledonia field respectively, from Tullow Oil Plc. The companies were renamed CIECO Energy (UKCS) Limited and CIECO Energy (CNS) Limited. The current production from the Alba field is approximately 34,400 BOPD. In June 2009, the interest in the Caledonia field was sold to Premier Oil ONS Limited.
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