MOL signs Memorandum of Understanding with Oman Shipping Company
- Establishing New JV for Co-Owned Product Tanker -

May 28, 2007

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL, President: Akimitsu Ashida) today announced a memorandum of understanding with Oman Shipping S.A.O.C. (OSC), the national shipping company wholly owned by the government of Oman. The move will help both companies respond to increased demand for shipping service as Oman's economy grows. OSC Chairman and Minister of National Economy Ahmed bin Abdulnabi Macki and MOL President Akimitsu Ashida signed the agreement on May 25 at the MOL Head Office.

The government of Oman continues to develop new petrochemical and gas related projects, generating new demand for shipping services and transport of raw materials. To jointly meet this expanding demand, the memorandum between MOL and OSC covers the dry bulker business, in addition to LNG carriers and oil tankers. With this memorandum, MOL will become more deeply involved in Oman's ocean shipping business, and will contribute to the nation's economic growth.

MOL and OSC also agreed to establish a new company that will own a new LR2-type* product tanker on the same day. Each company will hold a 50% share.

[Background]

Oman's government established OSC to enhance development of the nation's ocean shipping industry, focusing on transport of exported resources and energy. MOL and OSC established joint companies when they moved into the tanker business. Two companies (one for a VLCC, another for an LR1-type product tanker) were launched in June 2005, and two more (one for an LR2-type product tanker, another for an LPG carrier) were started in June 2006. Since then, MOL has worked closely with OSC, sharing its extensive experience and know-how. The latest JV is the fifth tanker project for MOL and OSC.

Establishing a new joint company for an LR2 product tanker enhances the partnership with OSC, and MOL will continue its proactive approach to resource and energy transport.

= Reference 1 =

*LR2-type: Large Range 2 type, the 110,000 ton class product tanker.
(LR1-type: 75,000 ton class.)

= Reference 2 =

MOL and OSC jointly own six LNG carriers already in service and five in all tankers and large LPG carriers that have been ordered, and concluded a comprehensive business tie-up regarding support for the growth of Oman's ocean shipping industry in 2003.

With this tie-up, MOL offers support and advice concerning new vessel construction, shipowner operation, ship management, ship operation, and company management, and will help develop the personnel necessary for Oman's ocean shipping industry and other related operations, including seafarers.