Sojitz Corporation, thorough Frade Japao Petroleo Limitada (FJPL) a joint venture with Inpex Corporation (Inpex) and Japan Oil, Gas and Minerals National Corporation (JOGMEC) made a final investment decision related to development of Frade Oil Field Project on June 15. This decision will enable the launch of full-scale development towards the commencement of oil production in April 2009.

Development of the Frade Oil Field Project is undertaken by an international consortium consisting of FJPL, US firm Chevron (operator), and the Brazilian state-owned oil and gas company Petrobras; with interest ownership of 18.3 percent, 51.7 percent, and 30 percent respectively. The Frade Oil Field was discovered in 1986, and FJPL joined the project in July 1999, when the project was still in the exploration and evaluation phase, by the participation agreement with Petrobras.

The Frade Oil Field is located approximately 120km offshore, at a water depth of 1,050 ~ 1,300 m. The scale of peak production for the oil field, which has estimated recoverable crude oil reserves of about 300 million barrels, is expected to be 100,000 barrels per day. The project has adopted a development concept that introduces a sub-sea completion technology and the Floating Production Storage and Offloading System (FPSO). The total planned investment in the project is US$2.4 billion.

The subject investment decision will realize the first project which Japanese Companies conduct oil production in Brazil. Both the Japanese and Brazilian governments have great hopes for the project. Sojitz continue to work for successful commencement of oil production in the Frade Oil Field, and will pursue other oil projects in Brazil.