Idemitsu Development Plan for Vega South Field in Norwegian North Sea Approved by Government.

Tokyo, Japan, July 11, 2007 - (JCN) - Idemitsu Kosan announced July 2 that its subsidiary, Idemitsu Snorre Oil Development, Co., Ltd. has obtained approval of the plan for development of the Vega South field in which Idemitsu owns 15% interest, from the Norwegian government through its Norwegian subsidiary Idemitsu Petroleum Norge AS.

Idemitsu Snorre is held 50.5% by Idemitsu Oil and Gas Co., Ltd. 50.5%, and 49.5% by Osaka Gas  Summit Resources Co., Ltd.

On December 15, 2006, the plan for development of the Vega South fields was submitted to the Norwegian government. The development entails investments valued at 7 billion Yen for IPN interests in subsea facilities, production wells and pipeline for the Gj? gas field, which is located about 30 kilometers east of Vega South. Gjoa gas field is to be developed at the same time as the Vega South development.

The Vega South field is located 135 kilometers northwest of Bergen in western Norway, and 15 kilometers northwest of the Fram East field which started crude oil production in October 2006.

The recoverable reserves are estimated at 7.9 billion cubic meters for gas and 15 million barrels for condensate. At its peak, production is expected to reach 28,000 barrels of oil equivalent per day.

JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K.