Activities Through Equity Shares SAKHALIN, RUSSIA (Sakhalin-1) Chayvo, Odoptu, Arukutun/Dagi SODECO (Sakhalin Oil and Gas Development Co., Ltd.), ExxonMobil, two Russian partners (SMNG, RN-Astra) and ONGC-Videsh have executed a Production Sharing Agreement on June 30, 1995 to develop three large oil fields (Chayvo, Odoptu, Arkutun-Dagi) in an offshore area north of Sakhalin Island. Total recoverable reserves of these fields are estimated to be 2.3 billion barrels of oil (307 million tons) and 17 trillion cubic feet of natural gas(485 billion cubic meters). Oil and gas production from Chayvo field started in October 2005 for the domestic market. Oil will be exported from Dekastri terminal in 3Q 2006. ITOCHU Group is the largest private share holder of SODECO, in which CIECO and ITOCHU Corporation have the shares of 3.66% and 14.456% (total 18.116%) respectively.