ITOCHU approval of development of the Western Isles Development Project

12/18/2012

ITOCHU approval of development of the Western Isles Development Project

HOUSTON -- CIECO E&P subsidiary of ITOCHU, with the working interest of Block 210/24a  rest of block with Dana Petroleum E&P, operator of the block and subsidiary of Dana Petroleum has decided to jointly develop the newly discovered Harris and Barra oil fields in the afore mentioned block Western Isles Development Project (WIDP), and announced that the development plan was approved by the Department of Energy & Climate Change (DECC).

ITOCHU entered into oil and gas upstream business in North Sea by acquiring the working interests in the Hudson, Hutton and North West Hutton fields, followed by an acquisition of an interest in the Alba field in 2005. Managing those assets we have been continuously engaged in oil exploration and production business in North Sea.

With regard to WIDP, CIECO joined the exploration activity in 1996 and it has contributed its technical and commercial knowledge accumulated working in the North Sea to see WIDP to the development stage. CIECO will continue to use its experience to bring WIDP to production and, moreover, expand its upstream business.

Recoverable oil reserves of WIDP is estimated over 45 MMbbl and the cost to develop the Harris and Barra fields is expected to be at $1.6 billion. First oil is expected in 2015 and CIECO estimates that it will increase ITOCHU’s net production approximately 10,000 bopd. In the first half of 2012, ITOCHU’s production rate was approximately 60,000 bopd.

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