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In the oil and gas development business, we participated in planning the development of oil and natural gas in Azerbaijan, Russia (Sakhalin), Algeria, the North Sea and elsewhere. We hold approximately 4.3% interest in the ACG oil fields in the Caspian Sea in Azerbaijan, a large-scale oil field development with estimated reserves of 5.4 billion barrels and present production volumes exceeding 800,000 barrels a day. We are proceeding with a production expansion plan aimed at increasing production volumes to 1,000,000 barrels a day. In addition, as the largest private shareholder in Sakhalin Oil and Gas Development Co., Ltd., we are participating in the planning of the Sakhalin I Project, an oil and gas development project on Sakhalin, which is the supply source closest in range to Japan, where we have been proceeding with commercial production of crude oil and natural gas since 2005. We are planning to bolster our equity interests by expanding profitable assets through increases in existing equity interests and the exploration of new mines.
With regard to the development of natural gas, we are participating in the planning of projects of LNG, a clean source of energy likely to be in steadily growing demand in the future, in Qatar and Oman. Production and sales in these projects are holding steady. We also trade in LNG, making use of our capabilities as a trading company.
With regard to oil trading, ITOCHU Petroleum Company (IPC), which is at the core of the trade in crude oil and petroleum products, is the center for brisk trade in countries worldwide.
We trade oil globally and sell petroleum products in countries overseas with IPC Singapore being our base in Asia, IPC Europe in Europe, and IPC (USA) in North, Central, and South America, respectively. In Japan, we operate businesses related to petroleum products and LPG, which are centered on ITOCHU ENEX Co., Ltd., one of the largest trading company-affiliated oil wholesalers. We are proud of our worldwide services in energy trading, which are in the first rank among those of general trading companies.