July 12, 2004

MOL to Participate in Ownership of Four New LNG Carriers

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL, President: Akimitsu Ashida) today announced that the company is signing contracts for joint ownership of four additional new LNG carriers with Oman Shipping Company. In January, the company announced contracts for two new carriers. Contracts covering all four ships will be signed today and tomorrow. All four of the new vessels will be chartered by Oman Shipping Company. As a result, MOL will have joint ownership in a total of six LNG carriers, including two already in service.

Itochu Corporation and Mitsubishi Corporation, which recently signed an LNG sale and purchase agreement with Oman, decided to participate in the vessel ownership joint venture and will also sub-charter the LNG carrier respectively.

Oman is now concentrating on the development of its LNG production. It has had two production trains with 6.6 million tons per year capacity in operation since 2000. The third train, called the Qalhat LNG, is under construction and will start production in 2006. With the third train, Oman will have a total capacity of 10 million tons per year. The four new LNG tankers will transport LNG produced by Qalhat LNG.

Developing the shipping industry is another important goal for the Omani government, which established the Oman shipping Company. The new national shipping arm will own vessels and enlarge its business scope to cover ship management, manning, and voyage operation.

The relationship between MOL and the Omani government started with the joint ownership of the Sohar LNG, which sails under a long-term charter with Oman LNG L..L..C.

MOL also opened a ship management office in Muscat, staffed by four technical and marine experts who provide technical support to the government’s shipping activities. In July 2002, another joint venture ship ownership program called Muscat LNG was formed. In May 2003, MOL and the Omani government concluded a services agreement under which MOL will provide technical support in every aspect of shipping. Pre-delivery work, ship management, and voyage operation of these four new ships will be handled by Oman Shipping Co., with technical support and assistance from MOL..






(Particulars of Newbuilding LNG Carriers)