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Abu Dhabi's IPIC acquires 20.85% stake in Japan's Cosmo Oil for $780m

Abu Dhabi, Sep. 18th, 2007 (WAM)---Abu Dhabi's International PetroleumInvestment Company ( IPIC ) announced Tuesday the launch of itsfirst investment into the Japanese downstream sector by agreeingto acquire a 20.85% stake in Cosmo Oil Co. Limited of Japan (CosmoOil) in a deal valued at 89.8 billion Yen (approx 780 millionUSD), according to a press release by IPIC .

" IPIC wishes to gratefully acknowledge the support and guidanceof the President H.H. Sheikh Khalifa Bin Zayed Al Nahyan, andCrown Prince H. H. Sheikh Mohamed Bin Zayed Al Nahyan in providingthe resources for IPIC to realize its investment objectives",said. IPIC 's Managing Director Khadem Al Qubaisi.

"Under the dynamic leadership of its Chairman, Sheikh MansourBin Zayed Al Nahyan, IPIC has adopted an aggressive policy ofexpansion. The investment in Cosmo Oil is part of this expansionprogram which began in 2004. Moreover the investment in Cosmoincreases IPIC 's investment in global refining capacity by 40%to 2.1 million bbl/d. The company plans to continue to activelypursue attractive investment opportunities in the hydrocarbonsector in order to achieve the ambitious targets set by the Chairman.""This is a critical time for the industry and we are excitedand very pleased to be embarking on this strategic partnershipwith Cosmo Oil", Al Qubaisi said.

The creation of this strategic partnership with Cosmo Oil- whichis one of Japan's leading energy companies with activitiesacross the value chain from exploration and production to refiningand marketing to petrochemicals- also representsone of the largest UAE investments into Japan, the largest importerof hydrocarbon products from the UAE accounting for approximately40% of the UAE oil exports.

"The long standing history between Cosmo Oil, the Emirate ofAbu Dhabi and the UAE was instrumental in making this transactiona success. We see many opportunities for additional investmentwith Cosmo in the Asia-Pacific region and elsewhere and lookforward to a long lasting and value creating relationship", he added.

---Following are the major highlights of the transaction:* The acquisition of newly issued shares equivalent to 20.85%of the outstanding total share capital of Cosmo Oil.

* Subject to approval by its shareholders, Cosmo Oil will accepttwo directors from IPIC to the board of directors.

* The creation of a strategic steering committee to manage therelationship and evaluate joint business opportunities.

---About Cosmo Oil: Cosmo Oil's refining capacity consists of four refineries witha total refining capacity of 635,000 bbl/d or 13% of Japan'stotal refining capacity. It is also a leading player in theretailing of petroleum products with a service station networkof over 4,400 stations accounting for an 11% market share.

Cosmo Oil produces approximately 27,000bbl/d mainly throughvarious working interest in projects located in Abu Dhabi andQatar. Through its investment in Maruzen Petrochemicals the companyproduces over 710,000 tons of ethylene annually. For the fiscalyear ended March 31st 2007, the company reportednet income of 26.5 billion Yen on sales of 3,062.7 billion Yen.

---About IPIC : IPIC is wholly owned by the Government of the Emirate of AbuDhabi and "its mandate is to invest in the hydrocarbon sectoroutside the Emirate of Abu Dhabi." IPIC 's current investmentportfolio includes stakes in Hyundai Oilbank Co. in South Korea,Gulf Energy Maritime in Dubai, CEPSA in Spain, Pak-Arab RefineryLtd. and Pak-Arab Fertilizers Ltd. in Pakistan and Oman Polypropylene ,and SUMED in Egypt. IPIC 's investment portfolio is currentlyvalued in excess of USD $10 billion.