Idemitsu Kosan Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President: Akihiko Tembo) announced today that its subsidiary, Idemitsu Snorre Oil Development, Co., Ltd.* (Head office: Minato-ku, Tokyo; President: Osamu Kamimae), 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 (IPN; President: Kosuke Tsuji).

* Shareholders: Idemitsu Oil and Gas Co., Ltd. 50.5%, Osaka Gas Summit Resources Co., Ltd. 49.5%

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 Gjøa gas field, which is located about 30 kilometers east of Vega South. Gjøa 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.

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Overview of gas field

Name Vega South field
Location 15 kilometers northwest of the Fram East field
Participating Interests Idemitsu Petroleum Norge (IPN) 15%
Norsk Hydro (Operator) 25%
Revus 25%
Statoil 20%
Gaz de France 15%
Block and area Fram/PL090C block, approx. 22km2
Water depth Approx. 370m
Date of acquisition May 2002

New Window Open<Reference> Location map of the Vega South field (PDF: 401KB)

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For inquiries regarding this press release, please contact

Mr. Nishira
PR Dept.
Idemitsu Kosan Co., Ltd.
Tel: +81-3-3213-3115