The Western Isles Development Project(WIDP)in the U.K. North Sea

Approval of Development of the Western Isles Development Project in the U.K. North Sea

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CIECO Exploration and Production (UK) Limited, a 100%-owned subsidiary of ITOCHU, which holds a 23.08% working interest in a block, has decided to jointly develop newly discovered oil fields in the block (Western Isles Development Project (“WIDP”)) with Dana Petroleum (E&P) Limited, the operator of the block. We received U.K. government approval of the development plan in December 2012.
Since becoming involved in the U.K. North Sea in 1993, we have been continuously engaged in the oil exploration and production business in the region, such as acquiring an interest in the Alba field in 2005 to secure a stable supply of resources. With regard to WIDP, we joined the exploration activity in 1996 to see WIDP to the development stage.
Production is expected to commence in 2015, and we estimate that it will increase our oil and gas interests by approximately 10,000 barrels per day. We plan to apply the technological and commercial expertise we have accumulated in the U.K. North Sea to see WIDP transition to production and further expansion.