Acquisition of the interest in 8 LNG Vessels

Oct. 14. 2010
Marubeni Corporation

Marubeni Corporation (“Marubeni”) has agreed with BW Gas Limited, Bermuda (“BWG”) to acquire 49% interest of 8 LNG carriers (“8 LNGCs”) presently owned by BWG under long-term time charter to Nigeria LNG Limited (“NLNG”). Marubeni’s acquisition cost is about US$ 700 million (equivalent to JPY about 60 billion). This is Marubeni’s first participation in owning LNG vessels.

Marubeni and BWG established a 49%/51% joint venture company (“JVC”) in Bermuda and the JVC acquires SPCs owning the 8 LNG vessels. The JVC arranges the project finance for the acquisition of the SPCs.

The 8 LNG vessels have been, since the deliveries from the shipyard in between 2004-2008, chartered by NLNG (a joint venture consisting of Nigeria National Petroleum Corp. 49%, Shell Gas BV 25.6%, Total LNG Nigeria Ltd 15% and Eni International NA NV 10.4%) and been engaged in LNG transportation from Nigeria to Europe and USA under the long-term  LNG sales contracts. The charter contracts of 8 LNG vessels are for the period of maximum 22.5 years.

Marubeni and BWG wishes to take the opportunity afforded by this partnership to expand their cooperative ties in LNG and other energy transportation businesses.

Marubeni envisions energy supply chain including LNG transportation as one of the core growing business fields and does hope to expand its activities in energy transportation and other related marine business fields aggressively.

Outline of BWG
BW Gas Limited
Registered Office: Clarendon House, 2 Church Street, Hamilton HM11, Bermuda
Incorporation Date: 24 March 2008
Outline of Business: Gas Marine Transportation Services

Outline of 8 LNG Vessels
Name of Vessel      built in     Capacity (cub.m)
LNG River Orashi    2004        145,914
LNG Enugu            2005        145,926
LNG Oyo               2005        145,842
LNG Benue            2006        145,952
LNG Lokoja            2006        148,471
LNG Kano              2007        148,565
LNG Ondo              2007        148,478
LNG Imo                 2008        148,437