● ● Corporate Guide 2021

Japan Petroleum Exploration Co., Ltd. https://www.japex.co.jp/english/

A part of the cost of the printing paper will be Japan Petroleum Exploration Co., Ltd. FSC donated to environmental protection activities.

Printed in Japan, April 2021 ● ● Corporate Vision

● ● Contents Contribute to society through 2 Overview of Oil and Gas E&P 4 Overseas Projects 6 Domestic Projects stable supply of energy 8 Energy Development 10 Energy Supply and address social issues towards 12 Creation of New Businesses 14 Sustainability Sustainable Development Goals. 16 Corporate Profile

• Explore, develop, produce and distribute crude oil and natural gas at home and abroad.

• Further strengthen the natural gas supply chain, built on our domestic infrastructures, by combining the electric power supply business.

• Contribute to resolving energy and climate change related challenges towards a sustainable society through developing and commercializing new technologies, drawing on our expertise.

• Achieve sustainable growth and maximize corporate value, while placing top priority on maintaining trust with all stakeholders.

JAPEX Corporate Guide 2021 1 ● ● Overview of Oil and Gas E&P Oil and Gas E&P Value Chain

Since its foundation, JAPEX has been engaged in the upstream, or E&P (exploration, development and production), sector of the oil

and gas industry, as well as their transportation and supply. It also has contributed to the stable supply of energy, drawing on its S Screen

extensive track record both at home and abroad, as well as the broad range of technologies and expertise it has accumulated over E Explore

the years. P Produce

D Deliver

Screen Explore Produce Distribute

Development and Production Transportation and Supply

FEED ● Acquisition of Interests Crude oil Tank trucks, tankers, pipelines (Front-end Engineering and Design) ● Natural gas Pipelines Information gathering Onshore ● LNG LNG carriers (ocean-going carriers, coastal vessels), E geophysical survey Drilling of production wells tank trucks, tank containers on rail Preliminary survey

Construction of production facilities Acquisition of working interests Crude oil tank D Production of oil and gas truck Clients

● Gas-fired power plants D Crude oil tankers ● Local gas distributors Onshore ● Industrial users E drilling rig ● Exploration D Crude oil pipeline Oil refiners ● Others Geological survey Crude oil

Geophysical survey D Natural gas pipeline

Exploratory and Production Production appraisal drilling P P Acquisition of well facility S interests Evaluation of reserves Offshore LNG liquefaction D LNG tank truck E D drilling rig Natural gas plant

Offshore E geophysical survey D LNG carrier LNG tank containers LNG D Receiving terminal D on rail

Origin of Oil and Natural Gas Oil Natural Gas and LNG Oil and natural gas are said to be Oil is a general term for flammable liquid, composed Natural gas is a flammable gas composed mainly of meth- formed underground, over several to Cap mainly of various hydrocarbons found underground. Crude ane, which is colorless, odorless, and ligher than air. It is rock tens of millions of years, from prehis- Gas reservoir oil is a liquid extracted from oil fields underground, from considered to be an energy source with a lower environ- toric organisms decomposed by high which gas and water are removed. By applying heat, it is mental impact than other fossil fuels such as oil and coal Reservoir Oil reservoir subterranean heat and microorganisms. rock distilled and separated into fractions such as liquefied pe- given its less emissions of carbon dioxide (CO2), nitrogen These resources move upward troleum gas (LPG), naphtha (gasoline), kerosene, diesel oil, oxide (NOx), and sulfur oxide (SOx) when burned. through subterranean cracks and fuel oil, and asphalt by taking advantage of their different Natural gas is liquefied into LNG by cooling it to -162˚C collect in a stratum called source rock. boiling points. or -260˚F. LNG takes up only one six-hundredth the volume Natural They then accumulate in formations Oil gas Depending on their properties, they are used as fuel for of natural gas, allowing for long-distance transportation containing a dome-shaped, dense layer vehicles and machines, and as raw materials for chemi- and mass storage. Most of the natural gas consumed in Source rock called cap rock and reservoir rock cal products such as plastic bottles, plastic products, and Japan is imported from overseas as LNG. Mud underneath. fibers.

2 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 3 ● ● Overseas Projects

海外事務所

03 Canada Maximizing Value Shale Gas Project Natural Gas Block North Montney (Province of British Columbia) of Overseas Projects Project Company JAPEX Montney Ltd. JAPEX has been engaged in the shale gas development and production project in North Montney in the JAPEX aims to maximize the value of existing E&P projects and explore opportunities to participate in new projects. Province of British Columbia, Canada since April 2013, which is a project operated by the subsidiary of Also, our Singapore Branch plays a central role in seeking opportunities for more flexible sourcing of LNG. PETRONAS, the Malaysian state-owned oil company. A significant volume of shale gas assets has been confirmed in the area. To enhance the asset value, the project currently prioritizes the development of areas with high economic potential, considering U.K. North Sea A the prevailing market conditions in Canada. U.K. North Sea Offshore Block Russia/Sakhalin Canada 04 B Sakhalin-1 Project Oil Sands Project See: Tight/Shale Formation Development Technology on page 9 Aberdeen Representative Office Canada 03 Shale Gas Project 04 Canada Oil Sands Project Bitumen United States C Iraq Tight Oil Project Block Hangingstone (Province of Alberta) 01 Garraf Project オイルサンド Headquarters Japan (see page 6) Project Company Canada Oil Sands Co., Ltd. Houston Representative Office The project is led by Japan Canada Oil Sands Ltd. (JACOS), a local subsidiary. Dubai Representative Office

Jakarta Representative Office

Singapore Representative Office 01 Iraq Indonesia 02 Garraf Project Crude Oil Kangean Project Block Garraf Oil Field 02 Indonesia (northern region of Dhi Qar Governorate) Natural Gas Project Company Japex Garraf Ltd. Kangean Project Block Kangean Block (offshore East Java) JAPEX has been engaged in the crude oil development and pro- Project Company Energi Mega Pratama Inc. duction project in Garraf Oil Field in Iraq since it acquired pro- JAPEX has been engaged in oil sands development in the duction and development rights in the project in 2009 jointly with JAPEX has been engaged in the natural gas develop- East Java of Indonesia since 2007. Province of Alberta, Canada for more than 40 years since the operator PETRONAS, a Malaysia’s state-owned oil company. ment and production project in Kangean Block offshore The project develops and produces natural gas from it founded JACOS, a local project company, in 1978. Commercial several gas fields scattered in the block with a view to We pioneered the establishment of the Steam- production com- securing a stable supply over the medium to long term. Assisted Gravity Drainage (SAGD) method, a method menced in 2013, Current production is mainly from the Sirasun and using steam to extract bitumen (ultra-heavy oil) from and further devel- Batur Gas Fields of the TSB Gas Fields offshore north the oil sands layer; succeeded in test production using opment is under- of Bali island, which began production of natural gas in the method at 3.75 Section of the Hangingstone leases way to increase the March 2019. in 1999; and launched commercial production in 2003. production volume The natural gas is processed at a floating production Currently, JACOS produces bitumen in the area where to 230,000 barrels unit (FPU) and supplied through the East Java Gas Pipeline production commenced in August 2017 and transitioned per day. to a state-owned electric power company and fertilizer to stable production at the end of June 2018. Under the factories in the suburbs of Surabaya City, East Java. basis of stable production rate of 20,000 barrels per day, the production volume is adjusted flexibly in line with market conditions. United Kingdom Russia United States A B C See: Oil Sands Development by SAGD Method on page 8 U.K. North Sea Offshore Block Crude Oil and Natural Gas Sakhalin-1 Project Crude Oil and Natural Gas Tight Oil Project Crude Oil Block Seagull Discovery Block Chayvo, Odoptu and Arkutun-Dagi fields Block Middle McCowen (southern Texas) (300 km offshore from Aberdeen) (offshore Sakhalin Island) Project Company Japex (U.S.) Corp. Project Company JAPEX UK E&P Ltd. Project Company Sakhalin Oil and Gas Development Co., Ltd. (SODECO) This is a tight oil development and production project in Eagle This is an offshore crude oil and natural gas development project off the coast Ford, Texas. JAPEX has been engaged in the project since it ac- of Aberdeen, UK. JAPEX participated in the project during the exploration phase This is a project to develop and produce primarily crude oil in quired part of interests in the block in August 2012. three oil and gas fields, led by ExxonMobil, the operator. JAPEX in 2014. Subsequently, in March 2019, a decision was made to start developing See: Tight/Shale Formation Development Technology on page 9 the block. Further development for production is currently underway. participates in the project as a shareholder of SODECO. 4 JAPEX Corporate Guide 2021 5 ● ● Domestic Projects Asahikawa

Iwamizawa

Ensuring Stable Supply Kushiro Obihiro Coastal vessel Sapporo of Diverse Energies Kitahiroshima A Chitose 01 B LNG Receiving Tomakomai to Clients in Japan Terminal Muroran Yufutsu LNG Plant/ Hokkaido Gas Co., Ltd. Ishikari LNG Base Yufutsu LNG JAPEX currently produces oil and natural gas at oil and gas fields in 10 locations around Receiving Terminal Japan, and transports and distribute them to domestic clients through various methods. We Tomakomai City, Hokkaido also have been widening the range of energies we can access, including LNG (liquefied natu- ral gas) from overseas and electricity.

Coastal vessel

01 02 03 06 07 08

Yufutsu Oil and Gas Sarukawa Oil Field Ayukawa Oil and Gas Iwafune-oki Oil and Gas Shiunji Gas Field Higashi-Niigata Gas Field Oil and Gas Oil Field Oil and Gas Field Oil and Gas Gas Field Gas

Tomakomai City, Hokkaido Oga City, Akita Prefecture Yurihonjo City, Akita Prefecture 02 Approximately 4 km offshore Shibata City, Niigata Prefecture Niigata City, Niigata Prefecture Discovered in 1989 Discovered in 1958 Discovered in 1989 from the mouth of the Tainai River, Discovered in 1962 Discovered in 1959 In production from 1996 In production from 1959 In production from 1995 Oga Tainai City, Niigata Prefecture In production from 1963 In production from 1959 Discovered in 1983 Akita In production from 1990

03 Yurihonjo 04 Nikaho 04 05 09 10

Sakata 05 LNG tank truck Amarume Tsuruoka Yamagata Gas Pipeline Tohoku Natural Gas Co., Ltd. Yurihara Oil and Gas Amarume Oil Field Yoshii Gas Field Katakai Gas Field Murakami Sendai Oil and Gas Oil Gas Gas Field Yamagata Iw anuma LNG from overseas Yurihonjo City, Akita Prefecture Shonai Town, Yamagata Prefecture Soma-Iwanuma Kashiwazaki City, Niigata Prefecture Ojiya City, Niigata Prefecture Discovered in 1976 Discovered in 1960 Shiroishi C Discovered in 1968 Discovered in 1960 06 Gas Pipeline In production from 1984 In production from 1960 In production from 1968 In production from 1960 07 Soma LNG Terminal Niigata-Sendai Shinchi Town, E 08 Gas Pipeline Soma County, Fukushima Prefecture Fukushima LNG Receiving LNG from overseas Terminal Aizuwakamatsu LNG terminal Nihonkai LNG Co., Ltd. Power plant 10 D Niigata Terminal Koriyama Natural gas pipeline 09 Kawaguchi LNG tank truck Fukushima Natural LNG tank containers on rail Gas Power Plant Coastal LNG vessel LNG tank truck Shiroishi-Koriyama Gas Pipeline Fukushima Gas Power Co., Ltd. Shinchi Town, Soma County, Fukushima Prefecture

LNG tank truck Kanazawa

Komatsu 6 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 7 ● ● Energy Development Unlocking New Energy Resources Through Technological Evolution FOCUS 02 Tight/Shale Formation Development Technology Crude oil and natural gas contained in low-permeability JAPEX has consistently sought to establish and enhance development and production technologies for unconventional tight/shale formations is called tight/shale oil and gas. Horizontal well resources such as oil sands and tight/shale oil and gas. We also aim to establish production technologies for next-gen- The development and production used to be extremely eration energy resources such as methane hydrate, which is a potential domestic energy resource for the future. challenging with conventional methods. However, since Hydraulic fracturing the first decade of 2000, full-scale commercial produc- tion has been enabled by commoditization of the horizon- tal well drilling technology and the hydraulic fracturing technology, which uses high-pressure water to crack the formations to improve productivity. JAPEX has been involved in developing and producing Approx. 2,000 –

tight/shale oil and gas at home and abroad. Specifically, it has participated in a tight oil development project in 3,000 m FOCUS 01 Oil Sands Development by SAGD Method Texas, US, and a shale gas development project in the Province of British Columbia, Canada. In Japan, JAPEX succeeded in the first commercial production of tight oil The Steam Assisted Gravity Drainage (SAGD) method in 2014 at the Ayukawa Oil Field in Akita Prefecture, and is a method to extract bitumen from the oil sands layer, conducted a verification test for tight oil development Approx. 1,500 m or more using high-temperature, high-pressure steam to heat using multistage fracturing at the Fukumezawa Oil Field the oil sands layer and providing liquidity to the bitumen. Illustrative Diagram of Shale Gas and Tight Oil Development in Akita Prefecture. △ JACOS, our local project company, launched efforts to commercialize the method in the Province of Alberta, Canada, in 1992; succeeded in test production at the Hangingstone leases of the same province in 1999; and commenced commercial production in 2003. We have continued to use the SAGD method at the same block.

Process flow of the SAGD method FOCUS 03 Methane Hydrate 1 Drill a pair of horizontal wells 2 Heat the oil sands layer by injecting steam into upper well △ Oil sands production facility at the Hangingstone leases in Canada 3 Let bitumen in the oil sands layer flow downward Methane hydrate is an ice-like mixture of water and 4 Recover the bitumen that flowed down in the lower well methane, the principal component of natural gas. It is typically formed under the seabed over 500 meters deep at low temperature and high pressure. It has been con- firmed to exist abundantly in the sea near Japan, rais- 300 m 1 ing expectation as one of the potential domestic energy Horizontal well injector Oil sands layer resources going forward. 2 Currently, the government-led project towards com- mercialization is under way to develop stable production Horizontal well producer 5 m technology and prepare for the next offshore production 3 4 test. JAPEX contributes to developing technology for the sand-layer type methane hydrate as one of the share- holders of Japan Methane Hydrate Operating Co., Ltd. △ Combustion of artificial methane hydrate 500-1,000 m (JMH) established jointly by private companies engaged (photo courtesy of the MH21-S Research △ Schematic of the SAGD Method mainly in oil and gas E&P or plant engineering. Consortium)

8 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 9 ● ● Energy Supply Network Built

for Stable Supply FOCUS 02 LNG Satellite System

of Lower Environmental The LNG Satellite System, which supplies LNG to remote We ship LNG by tank trucks to areas around our LNG places beyond the reach of our gas pipelines, also is an receiving terminals, and by LNG tank containers on rail integral part of our natural gas supply network. to more distant locations. Shipment using the LNG tank Impact Energies containers on rail is a break-through LNG transportation method which has attracted attention from around the JAPEX has built a natural gas supply chain that incorporates various infrastructure and methods to supply natural world. gas combined with LNG from overseas̶energy sources with lower environmental impact. JAPEX is also involved in Recently, new initiatives to satisfy environmental natural gas power generation fueled by environmentally friendly LNG. regulations have gained momentum both at home and abroad. Such initiatives include the deployment of LNG trucks which use LNG as fuel, and LNG bunkering which enables direct supply of LNG fuel to vessels. To facilitate these initiatives, JAPEX has also worked on efforts to create a new supply model leveraging its LNG facilities and expertise in LNG. FOCUS 01 Domestic Natural Gas Supply Network △ LNG shipping facility for tank trucks at the Soma LNG Terminal

JAPEX has built and operated a proprietary gas supply LNG terminals, which serves as hubs for ocean-going LNG network to ensure stable supply of natural gas, both pro- carriers from overseas and domestic LNG coastal vessels, duced in Japan and procured from abroad, to its clients. also are an integral part of our natural gas supply network. The network is made up of high-pressure gas pipelines The Soma LNG Terminal ( see page 7- C ) with that connect gas fields in production and LNG terminals. two 230,000 kl LNG tanks, the largest class ground type The network, consisting mainly of the Niigata-Sendai tanks in Japan, is central to our gas supply network. The Gas Pipeline and extending more than 800 km, combines terminal receives and stores LNG from abroad, supplies and supplies the gas produced in the Niigata area and the LNG vaporized gas to pipelines, ships LNG in its original FOCUS 03 LNG vaporized gas stored at LNG terminals on the Sea liquefied form to clients, and transports LNG to other Natural Gas Power Generation of Japan side and the Pacific Ocean side. As a means to locations by coastal vessels. adapt flexibly to seasonable fluctuations in demand, we At the Yufutsu LNG Receiving Terminal and the Yufutsu Natural gas power generation is fueled by LNG, which equivalent to that of the Great East Japan Earthquake. store natural gas, produced in other gas fields, in the un- LNG Plant ( see page 7- B ) , LNG vaporized gas, pro- has the lowest emission and thus the lowest environ- Under the consignment from Fukushima Gas Pow- derground gas storage at the Shiunji Gas Field in Niigata duced from LNG received via coastal LNG vessels, and mental impact of all fossil fuels. As a cleaner energy er Co., Ltd., an entity responsible for operation of the Prefecture ( see page 7- 07 ) during summer, and then natural gas produced at the Yufutsu Oil and Gas Field, source, it is expected to serve energy demand in Japan plant, the Soma LNG Terminal receives and stores reproduce and supply it during winter. are combined and supplied to the Hokkaido area. over the medium- to long-term. LNG, and supplies LNG vaporized gas to the plant. The Fukushima Natural Gas Power Plant, adjacent to the Soma LNG Terminal, is capable of generating a maximum of 1.18 million kWh of electricity using LNG vaporized gas as fuel. The plant has achieved world- class efficiency by adding innovative technology com- ponents to the well-tested facilities which have adopted the gas turbine combined cycle (GTCC) method. The main facilities are designed to withstand the level of disasters

△ Fukushima Natural Gas Power Plant (Fukushima Gas Power Co., Ltd.) △ Niigata-Sendai Gas Pipeline △ Soma LNG Terminal

10 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 11 ● ●Creation of New Businesses Creating New

Energy Businesses FOCUS 02 Renewable Energy and Developing Environmentally JAPEX is promoting renewable energy business as one of the key contributors to its growth as an integrated energy company, bringing the 2050 carbon neutral goal into view. Friendly Technologies We are exploring and specifically examining projects that will contribute to increasing worldwide output of a JAPEX is developing renewable energy and new technologies utilizing its E&P experience to contribute to the goal of broad range of renewable energies, including biomass zero emissions and carbon-neutral society by 2050. We are also working on creating new environmentally friendly and wind power, geothermal energy we have already businesses in areas around the existing business domains. developed and operated, and solar energy we are gen- erating at two mega-solar power plants in Hokkaido. We leverage in new projects our oil and gas E&P technologies such as surveying subsurface structure and drilling, experience in building good relations △ Mega-solar power plant in Hokkaido with local communities, expertise in constructing and operating natural gas power plants, and know-how to manage mega-solar facilities. FOCUS 01 CCS and CCUS

Carbon dioxide Capture and Storage (CCS) and Carbon CCS (Carbon dioxide Capture and Storage)

dioxide Capture, Utilization and Storage (CCUS) have CCS is a technology to capture CO2 emitted from plants, FOCUS 03 grabbed attention as technologies for“ carbon neutrality,” power plants and other facilities and inject it deep New Business Seeds which refers to achieving net zero carbon dioxide (CO2) underground. Practical use of this technology requires emission. survey for geological formations suitable for injecting JAPEX aims to establish new business models in areas We aim at early practical application of CCS and CO2, drilling of injection wells, and establishment of around the existing business domains, explore and CCUS by using our technologies and know-how to technologies to store CO2 stably for a long term. commercialize new business seeds not bound by the develop and produce crude oil and natural gas that we JAPEX has joined a large-scale CCS demonstration existing business domains, and among others create have accumulated. project at Tomakomai, Hokkaido as one of the members “ environmentally friendly ” businesses. Such endeavors

of Japan CCS Co., Ltd. established by private companies. include building a supply chain in Japan for sustainable aviation fuel (SAF) derived from used cooking oil, es- CCUS (Carbon dioxide Capture, Utilization and tablishing an LNG supply model for LNG-fueled vessels Storage) and vehicles through the LNG bunkering system and

CCUS is a technology to capture and utilize CO2 before deployment of LNG-fueled trucks, and providing vari- storing it underground. ous energy services utilizing geothermal energy.

We are implementing research and verification test △ Screen capture of hot spring monitoring system“ Oyureco” We are also working with venture companies and of the Enhanced Oil Recovery (CO2-EOR) technology at our group companies for new business seeds. So far

home and abroad, which is a method to inject CO2 into a we have expanded the scope of solutions we provide by production-declined well to push out its remaining crude getting into full swing of distribution of an oil absorp-

oil or natural gas before storing CO2 underground. tion fiber“ Abura Kuraudo ” (which literally means“ oil We also aim to establish and commercialize a tech- eating cloud ”) developed by a venture company OLX nology for blue hydrogen derived from natural gas, LTD. and by expanding distribution channels for a hot

△ CCS Demonstration Project ground facilities at Tomakomai including capturing of CO2 generated in a blue hydrogen spring monitoring system“ Oyureco” developed with (photo courtesy of Japan CCS Co., Ltd.) production process. our subsidiary Geophysical Surveying Co., Ltd.

12 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 13 ● ● Sustainability FOCUS 02 Protection and Preservation of Environment Achieving Sustainable We are striving to reduce greenhouse gas (GHG) emissions by saving energy at our operation sites across the world. We also identify risks of soil, water and air pollution to take pre- Growth and Enhancing ventive measures against them. Among others, we ensure to reuse water we heavily depend on for our business activities and to protect environment when discharging water. Corporate Value through We are also mitigating environmental impact, including conserving ecosystems. We asses environmental impact at the feasibility study stage and take necessary measures based on the assessment results, and continue to monitor Trusted Relationships with △ Planting trees of native species at the Stakeholders the surrounding environment after the business is launched. Fukushima Natural Gas Power Plant

For JAPEX to achieve sustainable growth and enhance its corporate value through its mission of“ supplying stable energy,” it is essential to build trusted relationships with local communities where JAPEX operates, related parties and employees. We are working to manage environment and human resources with a view to contributing towards a sustainable society as FOCUS 03 well as ensuring safety and security and involving in community activities to be a company trusted by stakeholders. Good Relations with Communities

JAPEX strives to remain a trusted company in the regions around the world where we operate through dialogue and communication with various stakeholders and contribution to local communities. In Japan, we join or otherwise support events and lec-

FOCUS 01 tures hosted by local governments and offer facility tours HSE and Crisis Management and work experience programs to local school students. We also join local events and volunteer activities in the With health, safety and environment (HSE) as a top ness sites and employees and to manage crisis under regions where we operate. priority agenda in business activities, JAPEX has estab- a policy for health, safety, security and environment Overseas, we help develop social infrastructure for, pro- lished the JAPEX HSE Policy. We have also established (HSSE). The basic policy and key issues on HSSE are vide donations and support to, and cooperate and interact the HSE management system (HSE-MS) deployed wide- deliberated and determined by the HSSE Committee △ Supporting the Shinchi Town product fair in Tokyo with, local communities where we participate. ly at our business, including projects overseas in which consisting of the officer in charge of the HSE Dept. as we serve as an operator. chairperson and other relevant officers. Under the HSE-MS, we are working on to properly We pays particular attention to HSSE for our over- control and reduce HSE-related risks, comply with seas operations. Specifically, we are working on to relevant laws and regulations, and manage employee raise awareness of crisis management even in normal

health. The operational status of HSE-MS is appropri- times by conducting emergency contact drills and over- FOCUS 04 ately audited and improved as necessary. seas emergency response drills with overseas bases, Fair and Employee Friendly Workplace JAPEX provides all employees with educational pro- as well as providing overseas safety information to all grams and lectures by outside lecturers to make them employees and overseas safety seminars to those to be JAPEX has improved systems and environment for its fully understand HSE and improve its HSE culture. dispatched or assigned as an expatriate abroad. employees with diverse backgrounds in terms of gender, We are also working on to ensure the safety of busi- We have also formulated a business continuity plan nationality, age, career and workstyle to continue working (BCP) against emergencies such as a large earthquake vigorously and growing as self-directed professionals. and a pandemic. Moreover, we regularly develop and Our career development program offers educational put in place initial response procedures; and conduct programs to facilitate employees’ proactive career devel- emergency drills at business sites, employee safety opment as well as to develop their competency and skill set. confirmations and walk-home (from work) drills for We also provide a career support program for employees to emergencies. We have applied the BCP during the manage their life events such as child-rearing, nursing care spread of COVID-19 to continue business activities at and career advancement and to keep a good work-life bal- the same level as usual while ensuring the safety of ance. On top of these supports, we have introduced flexible

employees by taking thorough infection prevention and remote working systems that allow for flexible handling △ Having a remote meeting △ Providing safety training at the Soma District Office measures and having employees work from home. of operations even at the time of emergencies.

14 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 15 ● ● Corporate Profile ● ● Corporate History

Company Name: Japan Petroleum Exploration Co., Ltd. Number of Employees: 2,239 (consolidated basis) 1950s to 1960s Started as a national policy concern to promote domestic oil and gas exploration Established: April 1, 1970 (as of September 30, 2020) December 1955 Founded as a government-owned company by the Main Businesses: Exploration, development, production Paid-in Capital: JPY14,288,694,000 Law of Japan Petroleum Exploration Co., Ltd. and sales of oil, natural gas, and other Representative: Representative Director and President resources and contract service-related July 1956 Discovered the Biratori oil field in Hokkaido, the Chief Executive Officer operations, such as drilling first oil field discovered by JAPEX (in production Masahiro Fujita from 1956 to 1961)

May 1965 Expanded the business regions to overseas by revision to the Law of Japan Petroleum Exploration Co., Ltd. Main Offices △ JAPEX foundation ceremony October 1967 Integrated into a newly established Japan Headquarters: Hokkaido District Office: Houston Representative Office: Petroleum Development Corporation (JPDC) SAPIA Tower, 1-7-12, Marunouchi, 134-648, Numanohata, 5051, Westheimer, Suite 425 Houston TX Chiyoda-ku, Tokyo Tomakomai City, Hokkaido 77056, U.S.A. 1970s to 1980s Put its business on track by successively discovering oil fields in Japan 100-0005, Japan 059-1364, Japan TEL: +1-713-334-9800 April 1970 Reorganized as a private company by separating TEL: +81-144-51-2205 TEL: +81-3-6268-7000 from JPDC Jakarta Representative Office: Akita District Office: Gama Tower 19th Floor, May 1971 Established Japex Offshore Ltd. 85-2, Hirune, Terauchi, Akita City, Jl. H.R. Rasuna Said Kav. C-22, Jakarta March 1972 Discovered the Agaoki oil and gas field in Niigata, Akita 011-0901, Japan 12940 Indonesia the first ever offshore oil field discovered since the TEL: +81-18-866-9511 TEL: +62-21-2519-9938 establishment of Japex Offshore Ltd. (in production from 1976 to 1998)

Nagaoka District Office: Aberdeen Representative Office: △ Aga-oki Platform 2-2-83, Higashi-Zao, Nagaoka City, One Marischal Square centre 5083, 1990s to 2000s Expanded business regions and promoted business diversification Niigata 940-8555, Japan Aberdeen, AB1O 1BL, U.K. March 1996 Commenced operation of the Niigata-Sendai Gas TEL: +81-258-31-1401 TEL: +44-12-2484-1358 Pipeline

Soma District Office: Dubai Representative Office: March 2000 Commenced transportation of LNG tank container 159-2, Imagami, Komagamine, 203 Spectrum Building, Al Qutaeyat Road, on rail Shinchi Town, Soma County, Oud Metha, P.O. Box 121620, Dubai, U.A.E. January 2003 Commenced commercial production of bitumen Fukushima 979-2611, Japan TEL: +971-4-334-4248 by the SAGD method in Hangingstone leases in TEL: +81-244-26-9846 Canada Singapore Branch: December 2003 Listed on the First Section of the Tokyo Stock Sendai Liaison Office: 10 Collyer Quay, Exchange △ LNG tank containers on rail △ Headquarters Kakyoin Square Building 5F, Level 40 Ocean Financial Centre, May 2007 Participated in the Kangean project in Indonesia 1-1-20, Kakyoin, Aoba-ku, Sendai City, Singapore 049315 Miyagi 980-0013, Japan TEL: +65-6808-6050 TEL: +81-22-224-0731 2010s and thereafter Aiming to grow as an integrated energy company November 2011 Commenced operation of the Yufutsu LNG JAPEX Research Center: Receiving Terminal 1-2-1, Hamada, Mihama-ku, April 2013 Participated in the shale gas project in Canada Chiba City, Chiba 261-0025, Japan TEL: +81-43-275-9311 August 2013 Commenced production of crude oil of the Garraf project in Iraq

August 2014 Commenced operation of the mega-solar power station located at the Hokkaido District Office ● ● Main Group Companies March 2018 Commenced operation of the Soma LNG Terminal

Akita Natural Gas Pipeline Co., Ltd. Japan Canada Oil Sands Limited TOHOKU NATURAL GAS CO., INC. April 2020 Commenced commercial operation of the JAPEX SKS Corporation North Japan Security Service Co., Ltd. TELNITE CO., LTD. Fukushima Natural Gas Power Plant SK Engineering Co., Ltd. Canada Oil Sands Co., Ltd. Energi Mega Pratama Inc. North Japan Oil Co., Ltd. Japex Offshore Ltd. Kangean Energy Indonesia Ltd. Shirone Gas Co., Ltd. GEOSYS, Inc. EMP Exploration (Kangean) Ltd. Japex Pipeline Ltd. Japex Energy Co., Ltd. Diamond Gas Netherlands B.V. JGI, Inc. Japex Garraf Ltd. Sakhalin Oil and Gas Development Co., Ltd. Geophysical Surveying Co., Ltd. JAPEX Montney Ltd. Fukushima Gas Power Co., Ltd. Japex (U.S.) Corp. JAPEX UK E&P Ltd. ● ● For detailed and updated information, please visit our website. https://www.japex.co.jp/english/

16 JAPEX Corporate Guide 2021 JAPEX Corporate Guide 2021 17