ITOCHU's Activities Oman LNG L.L.C. (OLNG) ITOCHU Corporation is participating in this LNG project in Oman as a shareholder of Oman LNG L.L.C. (OLNG), together with the Government of the Sultanate of Oman, Shell, Total Oil, Partex Gas Company, Mitsubishi Corporation, Mitsui & Co., Ltd. and Korea LNG. The liquefaction plants started production in December 1999 and currently have a capacity of approximately 6.6 million tons per annum in total. Pursuant to long-term contracts, the delivery to Kogas (from April 2000) and Osaka Gas Co., Ltd. (from November 2000) has been carried out smoothly since the first loading. OLNG also has short-term contracts with several customers in the Far East, Europe, and the United States in addition to its long-term contracts. In addition, OLNG has opted to participate in the third train expansion project (Qalhat LNG) led by the Government of the Sultanate of Oman. ITOCHU expects that the activity of OLNG will continue to expand significantly in the future. ITOCHU's Activities Qalhat LNG On 30th of June 2004, ITOCHU Corporation and Qalhat LNG signed a long-term LNG supply agreement (which has since been novated to Oman LNG). Qalhat LNG has a production capacity of nearly 3.7 million tonnes of LNG per year. The plant started operations in December 2005 and currently supplies LNG to Europe and Asia. The Qalhat LNG project is mainly owned by the Government of the Sultanate of Oman. It is the second LNG project in Oman, with the first LNG project being Oman LNG, which started LNG production in 2000. Under the agreement, Qalhat LNG will supply ITOCHU Corporation with about 700,000 tonnes of LNG per year starting from 2006 for a period of 20 years. Under this agreement, which is on an FOB basis, ITOCHU Corporation is responsible for arranging for an LNG vessel to lift the LNG cargoes. Through this agreement, ITOCHU will be able to utlize its trading capabilities to participate in the trading of LNG, thus contributing to the stable supply of LNG around the world. ITOCHU's Activities Ras Laffan LNG Project ITOCHU Corporation is a shareholder of Ras Laffan LNG Co. Ltd. (RasGas), together with Qatar Petroleum, ExxonMobil and LNG Japan Corporation. RasGas started delivering LNG to Korea Gas Corporation (KOGAS) in August 1999 pursuant to a Sale and Purchase Agreement signed in October 1995 (and amended in June 1997). As construction of the RasGas second train was completed in March 2000, RasGas can now deliver around 4.8 million LNG to KOGAS each year. RasGas is able to expand its production capacity based on the giant gas reserve of North Field. RasGas continues to use its best endeavors to satisfy its LNG customers around the world. ITOCHU's Activities Development of Clean New Fuel DME (Di Methyl Ether) DME has a wide range of applications such as use as power generation fuel, a general heat source (boiler fuel etc.), diesel engine automobile fuel, and use in fuel cells etc. As DME emits no SOx, soot, PM (Particulate Matters) and little NOx at combustion, DME is highly expected to become widely used in Japan as a clean new fuel. In order to introduce this promising DME into Japan, overall and integrated activities covering DME production, logistics (transportation and storage) and application technology development are required. ITOCHU Corporation established Japan DME Ltd. in June 2001 together with Mitsubishi Gas Chemical Company, Inc., JGC Corporation and Mitsubishi Heavy Industries, Ltd. and is promoting the development of the above activities. Through Japan DME, ITOCHU Corporation also established DME Promotion Center in April 2004 with other DME promoting corporations for DME promotion activities. ITOCHU Corporation formed a corporate alliance with National Institute of Advanced Industrial Science and Technology etc. backed by Japan Oil, Gas and Metals National Corporation (JOGMEC)'s supports and succeeded in a development of an 8 ton DME truck in May 2004. The truck successfully traveled 10,000km on public roads on a test drive. DME fuel cell (1kW) and diesel power generator (50kW) which run on biomass-DME mixed fuel are also under development. ITOCHU's Activities Namibia CIECO E&P (Namibia) Co.,Ltd.(�gCIECO Namibia�h) was established in April 2007 for the purpose of the development of natural gas reserves in the Kudu Fields in Namibia. The Kudu Fields are located in the Kudu province of Namibia approximately 130 km Offshore Distance, 160-200m water depth, 4,475 km2 License Area. In June 2007, CIECO Namibia became a party to the Petroleum Agreement and Production License in the Kudu Fields upon Namibian government�fs approval. Kudu-8 appraisal well had been drilled from May 2007, however it was abandoned in September 2007 according to the unsuccessful result. The next appraisal well (Kudu-9) is going to be drilled in 1Q-2Q 2009. CIECO Namibia share holders ITOCHU Corporation 25% Japan Oil, Gas and Metals National Corporation (JOGMEC) 75% Kudu Fields equity holders CIECO E&P (Namibia) Co.,Ltd 20% Tullow Kudu Limited 70% Namcor (National Petroleum Corporation of Namibia) 10%