OREANDA-NEWS. Cosmo Oil announces the decision to spin off its petroleum exploration and production business (hereinafter E&P business) into a newly established company, as of February 28, 2014. The decision was made at the Board of Directors Meeting. The spinoff will be solely made by Cosmo Oil Co., Ltd. through a simple incorporation-type separation, and therefore this disclosure is also made on a simplified method.

The company aims to establish a solid business foothold for further expansion of the Cosmo Group as stipulated in the 5th Consolidated Medium Term Management Plan which started in April 2013. One of its measures is to make active investments in the E&P business.

The said business is a source of stable profit within the company's business portfolio under the current challenging business environment. The divestiture will allow the company to make faster business decisions in the scope of further enhancing the company's E&P business. The company will also strengthen information disclosures on its E&P business as one of the methods to further increase its business values.