Idemitsu Kosan : Petroleum Norge to sell part of participating interests of Production Licenses in Barents Sea,Norway（PDF：254KB）

October 20, 2020

Press Release

Company Name: Idemitsu Kosan Co.,Ltd.

Representative Director & Chief Executive Officer: Shunichi Kito

(Company Code: 5019, TSE, First Sect.) Contact person:

Munehiro Sekine, General Manager,

Investor Relations Office, Finance Department (TEL: [phone])

Idemitsu Petroleum Norge to sell part of participating interests of Production Licenses

in Barents Sea, Norway

Idemitsu Kosan Co.,Ltd. (the "Company") is pleased to announce that Idemitsu Petroleum Norge AS*1 (Head Office: Oslo Norway; Managing Director: Futoshi Tsuneyama), a wholly owned subsidiary of Idemitsu Snorre Oil Development Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Jun Miki)*2, has entered into an agreement with Lundin Energy Norway AS (Head Office: Oslo Norway), to sell a 10% participating interest in production licenses PL 537 & PL 537B including Wisting discovery and a 15% participating interest in production licenses PL 609, PL 609B, PL 609C, PL 609D and PL 851 including Alta discovery in the Barents Sea, Norway.

*1: Shareholder: Idemitsu Snorre Oil Development Co., Ltd. (100 %)

*2: Shareholders: Idemitsu Kosan Co.,Ltd. (50.5 %), Osakagas Summit Resources Co., Ltd. (49.5 %)

1. Overview

Idemitsu Petroleum Norge AS acquired a 20% participating interest in PL537 & PL537B, and a 30% participating interest in PL 609, PL 609B, PL 609C, PL 609D and PL 851 through the Norwegian licensing rounds. The Wisting and Alta discoveries were made in PL 537 in 2013 and PL 609 in 2014 respectively. Studies are ongoing with a view to progressing these discoveries to development.

The transaction is part of the Company's long-term business strategy, and capital and cash management plan. It will reduce development cost exposure in future. A cash consideration of 125 MUSD is to be paid on completion of the transaction.

Change of license share in the production licenses in Barents Sea

PL 537・PL 537B

		License Shares
Company Name	Before Transaction	After completion of
	Transaction
Idemitsu Petroleum Norge AS	20％		10%
Lundin Energy Norway AS	-		10%
PL 609・PL 609B・PL 609C・PL 609D・PL 851
		License Shares
Company Name
Before Transaction	After completion of
	Transaction
Idemitsu Petroleum Norge AS	30％		15%
Lundin Energy Norway AS	40％		55%

2. Summary of Lundin Energy Norway AS

(1)	Name	Lundin Energy Norway AS
(2)	Location	Strandveien 4, 1366 Lysaker, Oslo, Norway
(3)	Main Business Activities	Exploration, production and sale of petroleum in Norway
(4)	Date established	24 October 2003
(5)	Parent Company	Lundin Energy AB (Listed on the Stockholm Exchange Market)
			Capital relations	There is no relevant information.
	Relationship between the	Personal relations	There is no relevant information.
	Business relations	There is no relevant information.
(6)	listed company and the
Related parties to	There is no relevant information.
	concerned company
	the relevant
			situation
3. Schedule
	Date of contract		October 2, 2020 (Subject to approval of the board of Idemitsu Kosan
(1)
			Co.,Ltd.)
(2)	Date of board of directors'		October 20, 2020
	decision
(3)	Date of completion of the		Undecided*
	transaction

*Note: Completion of the transaction is subject to the approval of the Norwegian authorities.

4. Forecasts

Due to the date of completion of the transaction being subject to the approval of the Norwegian authorities, the impact on the Company's consolidated performance for this financial year is pending at the present time. Any further information concerning this matter that ought to be released, will be promptly disclosed.