January 6, 2004

MOL to Co-Own two additional LNG carriers
with Oman Government

TOKYO, JAPAN - Mitsui O.S.K. Lines, Ltd. (MOL; President: Kunio Suzuki) today announced MOL's participation in a project with The Government of the Sultanate of Oman (GOSO), which will give MOL part ownership in two newbuilding LNG carriers for the transportation of liquefied natural gas (LNG) for Oman's third LNG liquefaction plant (production capacity 3.3 million tons per annum, to be completed by 2006).

With the addition of these two carriers, GOSO and MOL now jointly own four LNG carriers. This will increase MOL's involvement in the Oman shipping industry and related business activities. MOL will continue to strongly emphasize high standards of service, safety, and professionalism in this project, qualities the company endeavours to bring to all its business activities.

Oman, more commonly known as an oil-producing nation, has seen the production of liquefied natural gas (LNG) grow significantly since 2000, when Oman's first and second LNG liquefaction plants were completed with a production capacity of 6.6 million tons per annum. Oman will soon be able to produce around 10 million tons of LNG per annum, once the third LNG liquefaction plant is completed.

In October, 2002, GOSO invited international bidding for the newbuilding of LNG carriers, and GOSO placed a firm order in July, 2003. MOL assisted GOSO during the bidding process, in the capacity of technical advisor in the evaluation of bidding documents, negotiation with shipyards, etc. These vessels will be the first LNG carriers for which the Oman Shipping Company, a national shipping company established May, 2003, will handle the full responsibilities of an ocean shipping business, namely construction supervision, ownership, ship management, and voyage operation.

Since January, 2002, when GOSO participated in the joint venture of the S/S "Sohar LNG", MOL has built a close and strategic relationship with GOSO. Major milestones include:
April, 2002: MOL opened Muscat office and dispatched 4 staff to work with GOSO in the marine, technical, and commercial fields of shipping.
July, 2002: MOL concluded a joint venture for a 2nd newbuilding LNG carrier (to be launched in April, 2004).
May, 2003: MOL and GOSO concluded a comprehensive service support contract, the Services Agreement, with the aim of providing professional support in the development of the ocean shipping industry in Oman.

MOL has been using its extensive knowledge of the LNG transport business, together with its considerable experience in the shipping industry, to help and support GOSO in a wide range of services, including, vessel ownership, ship management and voyage operation, supervision of newbuilding LNG carriers, crew training, consultation and advice in contract negotiation, and the establishment of a national shipping company.

MOL is a worldwide leader in the safe and reliable seaborne transportation of LNG. LNG is gaining increasing attention as a source of clean energy, and MOL has experience in the transportation of LNG dating back to 1983, when it launched a project to supply customers in Japan with LNG from Indonesia. Since then, MOL has steadily increased its presence in the LNG trade, and is now involved in 22 transportation projects. MOL participates in the ownership or operation of 56 LNG carriers, including several under construction, of a total of around 200 carriers worldwide.


(Particular of Newbuilding LNG Carriers)