Loan for Acquisition of Interests in Browse Gas and Condensate Fields in Australia
Contributing to Securing the Medium and Long-Term Stable Supply of LNG to Japan

• Region: Oceania
• Energy and Natural Resources
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on March 30, a loan agreement totaling up to USD604 million (JBIC portion) with MITSUI & CO., Ltd. (Mitsui & Co.). The loan is cofinanced with private financial institutions, bringing the overall cofinancing amount to USD1,007 million.
    
2. The loan is intended to finance the acquisition by Japan Australia LNG (MIMI Browse) Pty Ltd (MIMI Browse)^*1, an Australian company invested in by Mitsui & Co., of a 16% interest in East Browse and an 8% interest in West Browse, which make up the Browse Gas and Condensate Fields^*2 off the coast of Western Australia owned by Woodside Petroleum Ltd (Woodside) through its subsidiary. MIMI Browse plans to develop the gas-condensate field with Woodside, which is an operator, together with other partners, and offtake the products in accordance with participating interests, and sell mostly to Japan.
    
3. Although the importance of LNG remains high following the Great East Japan Earthquake, the existing long term LNG purchase contracts with major LNG supply countries such as Indonesia are sequentially facing their renewal times. Under these circumstances, the importance of Australia, a politically and economically stable country with abundant resource reserves, is increasing more and more as a LNG supplier, and thereby this loan will contribute to securing the stable supply of LNG to Japan through supporting the acquisition of interests in energy by Japanese companies.
    
4. As Japan's policy-based financial institution, JBIC will continue to financially support the promotion of acquisition and development of energy resources by Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
    

Note

1. *1 A wholly owned subsidiary of Japan Australia LNG (MIMI) Pty. Ltd., an Australian company 50-50 (or equally) invested in by Endeavour Resources Limited, which is a wholly owned British subsidiary of Mitsui & Co., and Pinnacle Resources Limited, a wholly owned British subsidiary of Mitsubishi Corporation.
2. *2 Condensate is a hydrocarbon liquid at room temperature and atmospheric pressure obtained in the process of collection and purification of natural gas; in general lighter than oil, it is intended to be refined into gasoline, diesel, jet fuel or naphtha.
3.