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NYK Concludes Long-Term Charter Agreement for Two Newly Built LNG Carriers for the Tangguh LNG Project

July 28, 2005

Nippon Yusen Kabushiki Kaisha (NYK) has recently concluded a long-term charter agreement with The Tangguh Production Sharing Contractors to utilize two newly built liquefied natural gas (LNG) carriers for the Tangguh LNG Project. This agreement will take affect from 2008.

The Tangguh Production Sharing Contractors is a consortium led by BP Berau Ltd. The Tangguh LNG Project aims to liquefy natural gas obtained from the offshore Berau, Wiriagar, and Muturi blocks in the province of Papua in Indonesia, and to export this LNG to Mexico or South Korea. The proven reserves of natural gas in this project amount to 14.4 trillion cubic feet, or approximately 290 million tons of LNG. The production of LNG is expected to begin at the end of 2008 with an annual capacity of about 7.6 million tons.

Following the conclusion of the above agreement, NYK consented to the terms of a joint-venture agreement with JSC Sovcomflot, a Russian state-owned shipping company, and PT Samudera Shipping Services of Indonesia. In collaboration with these two companies, NYK will be engaged in the ownership and ship management of the LNG carriers assigned to transport this LNG. This is the second joint venture between NYK and JSC Sovcomflot, both of which are presently involved in the Sakhalin II Project. NYK will proactively promote future participation in LNG business projects through these closer ties with JSC Sovcomflot.