Announcement of Strategic PartnershipBetween Cosmo Oil Company, Limited and International Petroleum Investment Company

Announcement of Strategic Partnership

Between Cosmo Oil Company,

Limited and International Petroleum Investment Company

Cosmo Oil Company, Limited (the "Company") has approved, by board meeting held on September 18, 2007, and International Petroleum Investment Company ("IPIC") has approved, by board meeting held on September 16, 2007, a strategic partnership between the Company and IPIC to promote energy business in the Asia Pacific region including Japan. Set forth below are the background and summary of the agreement.

1. Background The United Arab Emirates ("UAE") is the second largest and one of the most reliable oil suppliers to Japan. Equally Japan is the largest oil importer from the UAE. Both countries have developed strong and mutually beneficial ties through stable oil trade for several decades. The Company has developed a very close and unique relationship with the UAE, especially with the Emirate of Abu Dhabi, through mutual cooperation in the field of culture, education and environmental issues, trade in crude oil and petroleum products, and, particularly, nearly 40 years of E&P operation, which began prior to the founding of the UAE. IPIC is an investment company, 100% owned by the Government of the Emirate of Abu Dhabi. It is a long-term strategic investor focused on developing strategic partnerships through minority investments exclusively in the hydrocarbon sector. It views these investments as long-term partnerships that can be used as a platform to grow and add value to its strategic partners, IPIC's portfolio and the Emirate of Abu Dhabi. IPIC's investment portfolio currently exceeds USD10 billion and consist of investments throughout Europe, Asia and the Middle East. The parties recognize that energy demand in the Asia-Pacific region is continuing to grow. In addition, Japan remains a key strategic market for the UAE, and the UAE will continue to be one of the most important suppliers of oil to Japan. This investment will further serve to strengthen the bilateral relationship between Japan and the UAE and create valuable business opportunities to aid the Company in its growth. 2. Summary of Agreement Date of agreement