Financial results for the year ended March 31, 2008
Appendix1

EBIDAX(Millions of yen)
Net income

Mar. ‘07

Mar. ‘08

ChangeRecital

165,091

173,245

8,154

P/L

7,932

21,204

13,272

P/L

Depreciation equivalent amount

143,525

134,944(8,581)

Depreciation and amortization

30,59936,181

5,582

C/F Depreciation under concession agreements and G&A

Amortization of goodwill

6,977

6,616

(361)

C/F

Recovery of recoverable accounts(capital expenditure)

105,949

92,147(13,802)

Exploration cost equivalent amount

26,83757,78530,948

Exploration expenses

17,68834,095

16,407

P/L Exploration expense under concession agreements

Provision for allowance for recoverable
accounts under production sharing

6,176

20,586

14,410P/L Exploration expense under PS contracts

Provision for exploration projects

2,973

3,104

131

P/L Exploration expense under PS contracts

Material non‐cash items(21,307)(4,467)

16,840

Deferred income taxes(19,655)(5,502)

14,153

P/L

Foreign exchange (gain) loss

(1,652)

1,035

2,687

C/F

(291)

(62)

229

321,787

382,649

60,862

Minority interests

Net interest expenses (income), after
tax
EBIDAXC/F Depreciation under PS contracts

P/L After‐tax interest expense minus interest income2Analysis of Recoverable Accounts under Production Sharing(Millions of yen)Mar. ‘07

Mar. ‘08(INPEX)(Teikoku Oil)

295,075

319,149

316,894

2,255

Exploration costs

9,791

27,45925,292

2,167

Development costs

160,113183,002

182,643

358

Operating expenses

46,683

52,69750,516

2,181

16

‐

‐

‐

Cost recovery (CAPEX)

105,949

92,14791,892

255

Cost recovery (non‐CAPEX)

86,319106,047

103,836

2,211

262

951

880

71

Balance at end of period

319,149

383,162

378,738

4,424

Allowance for recoverable accounts under
production sharing at end of period

51,19071,44568,042

3,403

Balance at beginning of period
Add:

Other
Less:

Other

3

Geographical segment information
For the year ended March 31, 2008 (April 1, 2007 through March 31, 2008)
Japan

Asia/Oceania

Eurasia(Europe ‐ NIS)

MiddleEast/Africa

Americas(Millions of yen)
Total

Eliminations
and other

Consolidated

Net Sales

93,882452,542

183,878

464,5228,139

1,202,965‐

1,202,965

Operatingexpenses

61,950165,836

97,842

140,492

16,101

482,2236,530

488,754

Operatingincome(loss)

31,932286,705

86,035

324,030(7,961)

720,741(6,530)714,211

Assets212,305

360,298

363,183

299,563

60,656

1,296,006

511,893

1,807,900

Notes: 1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia ‐ Oceania･･････････Indonesia, Australia, East Timor, Vietnam(2) Eurasia (Europe ‐ NIS)･･･Azerbaijan, Kazakhstan, UK(3) Middle East ‐ Africa･････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･･････････････Venezuela, Ecuador, USA, Canada, Suriname
3. Unallocated operating expenses included in “Eliminations and other” of ¥10,345 million under the operating expenses are mainly amortization of
goodwill and general administrative expenses.
4. Of the figure for assets, ¥515,849 million included in “Eliminations and other” are mainly goodwill, cash and deposit, marketable securities andinvestment securities concerned with the administrative divisions.
5. Change of classification of region
While the classification of region until the previous fiscal year had been “Japan”, “Asia ‐ Oceania”, “NIS”, “Middle East ‐ Africa” and“Americas”, the “NIS” was changed to “Eurasia (Europe ‐ NIS)” due to acquisition of interest in UK project during the year ended March 31, 2008.

4

LPG Sales
Mar. 31, 2007
Net Sales (Billions of yen)Mar. 31, 2008

Change%change

8.8

12.1

3.2

37.1%

Sales volume (Mbbl)

1,351

1,549

198

14.7%

Average unit price of overseas
production ($/bbl)

48.76

62.00

13.24

27.2%

Average unit price of domestic
production(¥/kg)

127

130

4

2.9%

Average exchange rate (¥/$)

116.30116.260.04

0.0%

yen appreciation

yen appreciation

Change%change

Sales volume by region (Mbbl)

Mar. 31, 2007

Mar. 31, 2008

184

183

(1)

(17.5Mton)(17.4Mton)((0.1Mton))

Asia/Oceania

1,166

1,366

199

17.1%

Eurasia（Europe/ NIS ）

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas

‐

‐

‐

‐

1,351

1,549

198

14.7%
5

Japan

Total

(0.7%)

Production (By region)
Oil/Condensate/LPG
0%

2%

1 5

15%

Total

242Mbbl/day

423MBOE/day

36
Japan

3%

8%

Asia/Oceania

145

54

60%

23%

15

Eurasia32

Middle East/Africa
Americas34%

145

Natural Gas
15%

7%

82

161

177
42%

1,089MMcf/day（181MBOE/day）

54
Japan

13%

Asia/Oceania

846

AnericasJapan

Asia/Oceania

Eurasia

Middle East/Africa

Americas78%

6

INPEX CORPORATION
Highlights of the Consolidated Financial Results(Billions of yen)Mar. ‘07

Mar. ‘08

Change%change

Net sales

877.3

1,082.5

205.2

23.4%

Operating income

534.1

672.9

138.8

26.0%

Ordinary income

566.4

662.0

95.5

16.9%

Net income

159.9

162.9

3.0

1.9%

Net Sales800

Net Income（Billions of yen）

（Billions of yen）

（Billions of yen）

1,000

Ordinary Income
1,082.5

700
877.3

322.1

150

600
500

286.0

100

400

600

300

400

760.4
591.2

100

0

0
Crude OilMar.'08

Natural Gas

662.0

159.9

162.9

Mar.'07

Mar.'08

50

200

200

Mar.'07566.4

0Mar.'07

Mar.'08

7

INPEX CORPORATION
Crude Oil Sales
Mar. ‘07

ChangeMar. ‘08%change

Crude oil sales*(Billions of yen)

591.2

760.4

169.1

28.6%

Crude oil sales volume(Mbbl)

80,734

82,826

2,092

2.6%

Average sales price($/bbl)

62.40

80.46

18.06

28.9%

Average exchange rate(¥/$)

116.90113.643.26

2.8%

yen appreciation

yen appreciation*Includes domestic supply obligations with Indonesia

Sales volume increased by 2.6% from the previous fiscal year mainly due to an increase in production
volume at ACG Oil Fields (INPEX Southwest Caspian Sea)

8

INPEX CORPORATION
Natural Gas Sales
Mar. ‘07

Natural gas sales *(Billions of yen)

Natural gas sales
volume (MMcf)
Average sales price($/Mcf)Average exchange rate(¥/$)

ChangeMar. ‘08%change

286.0

322.1

36.0

12.6%

318,413

310,458(7,956)(2.5%)

7.51

8.85

1.34

17.9%

116.91113.683.23

2.8%

yen appreciation

yen appreciation*Includes LPG

Natural gas sales volume decreased by 2.5% from the previous fiscal year due to a decrease of shippingcargos from the Bongtang LNG Plants

9

INPEX CORPORATION
Analysis of Net Profit Increase(Billions of Yen)
226.4

400

(30.6)(43.2)

300(27.0)(10.1)(29.1)

200

9.4(80.7)

100(12.1)
162.9

159.9

0
Mar. ‘07

Increase inSales Volume

Increase in
Unit PriceAppreciation of
the Yen

Cost of
Sales

Exploration
Expenses andAllowance for
Exploration*

SG&A

Other Income
and Expenses

IncomeTax

Minority
Interest
and OtherMar. ‘08

Net Sales*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

10

INPEX CORPORATIONStatements of Income
Cost of sales for(Billions of yen)Mar. ’07

Mar. ‘08

Change%change

Net sales

877.3

1,082.5

2,05.2

23.4%

Cost of sales

306.6

349.8

43.2

14.1%

Exploration expenses

14.7

27.8

13.0

88.1%

21.8

31.9

10.1

46.3%

Operating income

534.1

672.9

138.8

26.0%

Other income

58.2

24.9

(33.3)(57.2%)

Other expenses

25.8

35.8

9.9

38.2%

Ordinary income

566.4

662.0

95.5

16.9%

Income taxes

398.9

479.7

80.7

20.3%

7.5

19.3

11.7

155.2%

159.9

162.9

3.0

1.9%

Net income

277.6

Change+45.3

Cost of sales fornatural gas :72.1

Change(2.0)

Joslyn, Ichthys, Van Gogh etc.

Selling, general andadministrative expenses

Minority interests

crude oil :Personal expenses, Freight
expenses, Depreciation expenses
etc.

Mainly income taxes in
producing countries

11

INPEX CORPORATIONOther Income/Expenses(Billions of yen)Mar. ‘07

Mar. ‘08

Change%change

Other income

58.2

24.9

(33.3)(57.2%)

Interest income

12.1

10.1

(2.0)

(16.7%)

Equity in earnings of affiliates

0.9

0.8

(0.0)

(8.1%)

Gain on transfer of mining rights

33.5

‐

(33.5)(100.0%)Net gain on re‐determinationof unitized field

‐

4.0

4.0

‐

Foreign exchange gain

5.6

3.9

(1.7)

(30.3%)

Other

5.8

5.8

0.0

0.5%

Other expenses

25.8

35.8

9.9

38.2%

Interest expense

11.5

9.9

(1.6)

(13.8%)

Provision for allowance forrecoverable accounts under
production sharing

4.7

18.8

14.1

295.7%

Provision for exploration projects

1.9

1.9

(0.0)

(3.1%)

Other

7.5

5.0

(2.5)

(33.6%)

Transfer of mining rights on
Ichthys gas field in previous
year

Net gain by re‐determinationof reserves at Bayu‐Undan
gas/condensate field. Ourparticipating interest in thefield slightly increase by the re‐determination.

Increase in exploration
expenditure by appraisal wells
in Masela Block.

12

Teikoku Oil
Highlights of the Consolidated Financial Results(Billions of yen)Mar. ‘07

Mar. ‘08

Change%change

Net sales

114.8

153.0

38.1

33.2%

Operating income

31.5

48.1

16.6

52.7%

Ordinary income

29.6

52.3

22.6

76.5%

Net income

15.4

30.6

15.2

98.4%

（Billions of yen）

Net Sales

Ordinary Income
153.0

160

（Billions of yen）

120
100
80

114.8

Crude Oil

50
30.0

30

52.3

20.0
30.6

20

47.1
16.1

40.0

40
69.3

20
0

54.5

51.5

60
40

（Billions of yen）

60

140

Net Income

29.1

Mar. '07

Mar. '08

Natural Gas（Inc. LPG）

Petroleum Products

10

29.6

10.0

0

15.4

0.0
Mar. '07

Mar. '08

Mar. '07

Mar. '08

13

Teikoku Oil
Crude Oil Sales(Billions of yen)Mar. ‘07

Mar. ‘08

ChangeChange %Net sales

16.1

29.1

12.9

80.4%

Overseas Crude Oil Sales
volume (Mbbl)

2,371

3,194

823

34.7%

Sales volume after adjustment of theoil trading and storage business(Mbbl)

2,371

2,482

110

4.7%

27

65

38

139.3%

Overseas average unit
price($/bbl)

53.90

67.93

14.03

26.0%

Domestic average unit price(¥/kl)

45,69462,225

16,531

36.2%

Average exchange rate (¥/$)

116.83115.82(1.01)(0.9%)

Domestic Crude Oil Sales
volume (Mkl)・Started crude oil sales at Sakhalin I project (it is netted in consolidated financial statement of
INPEX Holdings)
14

Teikoku Oil
Natural Gas Sales
Mar. ‘07

ChangeMar. ‘08%changeNatural gas sales**(Billions of yen)

47.1

69.3

22.1

47.1%

Overseas Natural gas sales
volume (MMcf)

172

29,77729,605

17,219.4%

Domestic Natural gas sales
volume (MMNm3)

1,273

1,657

385

30.2%

Overseas average sales price($/Mcf)

6.77

2.14

(4.63)(68.4%)

Domestic average sales price(¥/Nm3)

34.96

35.70

0.74

2.1%

Average exchange rate (¥/$)

116.39117.86

1.47

1.3%

・ Venezuela Gas JV is newly consolidated from current accounting period.
・ Domestic gas sales volume : Expansion to industrial users, increase in sales to Shizuoka Gas**Includes LPG

15

Teikoku Oil
Analysis of Net Profit Increase(Billions of Yen)

2.9

55

7.6

50
(0.2)

6.1

45

3.4

40

7.0

35

(13.5)

14.7

(3.8)

30

(4.4)
(4.6)

25
20

30.6

15
10
5
0

15.4

Net income
Mar. ‘07

Domestic
Gas Sales
expansion

Venezuela(Newlybooked)Other Sales Increase in Exchange Rate Petroleum
VolumeUnit Price (Yen Appreciation) products,
Increase
Other

Cost of
Sales*

Venezuela
Exploration
IncomeExpenses and (Net gain on
Tax
Allowance for taking effect ofExploration** JV contract)

Others

Net income
Mar. ‘08

Sales** Including the amount of the oil trading and storage business* * Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects (484 million yen decrease)16

Teikoku Oil
Statements of Income(Billions of yen)Mar. ‘07

Mar. ‘08

Change%change

Net sales

114.8

153.0

38.1

33.2%

Cost of sales

59.6

73.1

13.5

22.7%

Exploration expenses

2.8

6.2

3.3

116.7%

Selling, general andadministrative expenses

20.8

25.4

4.6

22.3%

Operating income

31.5

48.1

16.6

52.7%

Other income

4.7

10.1

5.4

114.8%

Other expenses

6.6

5.9

(0.6)

(9.5%)

Ordinary income

29.6

51.4

21.1

69.8%

Special income

0.6

0.0

(0.6)

(99.5%)

Special loss

‐

0.8

0.8

‐

Income taxes

14.5

18.9

4.4

30.7%

Minority interests

0.3

1.8

1.5

427.5%Net income

15.4

30.6

15.2

98.4%

Cost of sales for
crude oil :12.9

Change+8.1

Cost of sales fornatural gas :16.9

Change+4.9

Offshore North Ibaraki(Japan) etc.

Net gain by the effect of joint
venture agreement at Venezuela
project. (Revenue by adjustment
between April, 2006 andDecember, 2006. )Minority interests of gas sales in
Venezuela to PDVSA

17

Project Summary

18

Existing Interests in Major Assets
Joslyn Oil Sands Project(Cut off mining area in
Preparation for Development)

North Caspian Sea Block(Kashagan Oil Field, etc.)
Minami‐
Nagaoka
Gas Field

ACG Oil Fields

ADMA Block(Umm Shaif/Lower/Upper Zakum Oil
Fields, etc.)

Azadegan Oil Field
El Ouar I/II

Sakhalin 1

South NatunaSea Block B

Ship Shoal Block 72,
Main Pass Blocks 117/118,
West Cameron Blocks 401/402(In Development)
Cuervito/
Fronterizo Blocks

Offshore Mahakam Block/
Attaka Unit
Berau Block(Tangguh Unit)

Copa Macoya/
Guarico Oriental
BlocksABK Block
Masela Block(Abadi)West Bakr Block
Ohanet Block

WA‐10‐L Block(Grifin)
North West JavaBlock

WA‐155‐P(P1)(Van Gogh Field,
Ravensworth Field)
Offshore D.R. Congo Block

In Production

WA‐285‐P Block(Ichthys)In Development

Block 18*
Block 31*

Offshore North
CamposFrade BlockSouth East Sumatra
Block
Albacora
JPDA03‐12 Block(Bayu‐Undan)
Preparation for Development(Discovered)

Undeveloped (Discovered)* In a governmental approval process forinterests transfer

19

Production Start‐up Schedule
Project/Oil & Gas Field

Production Start‐up

Country

April ‘08

Frade Oil Field

Brazil‐ March ’09

Tangguh LNG ProjectIndonesia

April ‘09

Van Gogh Oil Field‐ March ’10
April ’10
‐ March ’11
April ‘12
‐ March ’13
After April ’13

Operator

Peak Production /Production Capacity

Our Share*1

Chevron

100Mbbl/d

6.85%

BP

7.6MMt/a

7.79%

Australia

Apache60Mbbl/d

47.499%North Belut Gas Field

Indonesia

ConocoPhillips

‐ *2

35%

Ravensworth Oil Field

Australia

BHPBP

‐ *2

28.5%

El Ouar I&II

Algeria

ENI

Joslyn Oil Sand Project (Cut off mining)

CanadaTOTAL

Ichthys LNG Project (LNG)

Australia

INPEX

TBD

10.29%

230Mbbl/d

10%Over 8MMt/a76%

Approximately 100Mbbl/d(Condensate)

Approximately 1.6MMt/a

(LPG)

TBD

100%

Abadi LNG ProjectIndonesia

INPEX

Discovered/Kashagan Oil Field

Kazakhstan

ENI

1.5MMbbl/d

Production start‐up(TBD)

Kuda Tasi / Jahal / Kitan

JPDA

ENI

TBD

35%

Kalamkas, Aktote, Kairan and Southwest Kashagan
structures

Kazakhstan

ENI

TBD

8.33% *3

Azadegan Oil Field

Iran

NICO

Phase 1 Full‐scale
production (TBD)

260Mbbl/d

8.33% *3

10%

Under initial stage production

*1
*2
*3

Our share is a working interest. In case of equity method affiliate, multiplying working interest by our controlling share.
Nondisclosure because of confidentiality agreement with project partner
Basic agreement with the Government of Republic of Kazakhstan in January 2008 (Our participating interest would be 7.56% from 8.33%)

20

Domestic Natural Gas Business

Teikoku Oil Co., Ltd.


Production* :⎯Natural gas: approximately 4.4 million m3/d⎯

Crude oil: approximately 5,000 bbl/d

Natural Gas Sales : 1.7 billion m3/y : 37% increase from previous
year (Teikoku Oil : Non Consolidated)Minami‐Nagaoka Gas Field(production commencement in 1984)⎯

Promotion of development in the northern part of the field
by Massive Hydraulic Fracturing (MHF) Technology⎯

Reinforcement of the plant processing capacity in 2006
(Output capacity : approximately 5.0 million m3/d : wholeof the field)

Domestic gasCompletion of pipeline network construction (1,400km) targeted
to expand gas sales⎯

LNG(regasified)Domestic Pipeline Network

Shin Oumi Line(71km: Approximately 17.8 billion yen:completion in 2009)⎯
Gunma Interconnection Line (Planned with Tokyo Gas)
Introduction of LNG⎯
From Shizuoka Gas Co., Ltd. in 2010
Construction of LNG Import Terminal in Joetsu‐shi (planned)⎯
Design to establish LNG Value Chain by our group
Power business : approximately 55,000 kw＊ sum of domestic crude oil and gas fields ; average daily volume (FY2007)21

Domestic Natural Gas Business

Sales Expansion
Natural Gas Sales Volume(Millions of Cubic Meters)

Pipeline Extensions(kilometers)

1,600

Sales
to
静岡ガスへの販
ShizuokaGas
売分
Natural Gas Sales Volume

1,900

Pipeline（Km）

1,700
1,500

1,300

1,300
1,100
900

1,000

700
500
300

700
2002

2003

2004

2005

2006

2007

2008
(Forecast)note： *2002‐2005 : Calendar year 2006‐ : April to March**Conversion into 1 cubic meter per 41.8605MJ (10,000kcal)***Teikoku Oil (Non Consolidated)

 Sales Volume : 1.7 billion m3 in FY2007 : 37% increase for previous year  Introduction of LNG (From 2010)(Teikoku Oil : Non Consolidated)⎯
Corresponding to our growing sales⎯

Fuel Switching to natural gas by Industrial users⎯

Sales to Shizuoka Gas through full year⎯
⇒ To over 2.0 billion m3 : mid tolong term forecast

Studying new sales price formula for
after 201022

Domestic Natural Gas BusinessPrice Environment

23

Offshore Mahakam

INPEX CORPORATION

Bontang LNG/LPG Plant

INPEX’s Working Interest: 50.0% (Operator : TOTAL)

Production*⎯

Gas: Approximately 2.7 billion cf/d



PSC: Until 2017

Attaka Field



Continue development activities to stabilize the supplyof gas to Bontang LNG plant

Badak Field

Peciko Field

Crude Oil: Approximately 73,000 bbl/dAttaka Unit
Santan Terminal

Nilam Field
Tambora Field

⎯

Tunu
Field

Handil Field

Sisi Field
Nubi Field

Senipah Terminal
Bekapai Field

Makassar Strait
Balikpapan

Offshore Mahakam⎯Phased development of Tunu / Peciko field⎯

Additional development of Tambora field⎯

Development of Sisi‐Nubi Unit

Renewal (under negotiation) of two LNG sales contracts
to be expired in December 2010 and March 2011

Gas field
Oil field
Oil and gas field＊

All field base and average of March 200824

South Natuna Sea Block ‘B’Ma

INPEX Natuna, Ltd.
 INPEX’s Working Interest: 35.0%

sia
lay

sia
one
Ind

South Natuna Sea Block B

Hiu

North Belut
South Belut

Bawal
Belida Buntal Tembang
Keong
Sembilang
Malong Production*:⎯

Crude Oil: Approximately 85,000 bbl/d⎯

LPG: Approximately 11,000 bbl/d⎯Gas: Approximately 470 million cf/d

KerisiWest Belut PSC: Until 2028

BelanakBintang LautNatuna Island

KijingOil Field

Anambas Islands

Gas Field
Oil and Gas Field
＊

sia
lay
Ma
ia
nes
Indo

Natuna Sea(Operator : ConocoPhillips)

All field base and average of March 2008

 Signed a gas sales contract for 22 years from2001 with SembCorp (Singapore) and for 20
years from 2002 with Petronas (Malaysia)
 Belanak commenced crude oil production in
December 2004 and LPG production in April
2007. Production has started at Kerisi in
December of 2007.
 Production is expected to start at North Belut in
2009.
25

Berau (Tangguh LNG Project) MI Berau B.V. / MI Berau Japan Ltd.
West Papua Province(Indonesia)

MI Berau B.V./MI Berau Japan Ltd.* : Joint venture with Mitsubishi
Corporation (INPEX 44%, Mitsubishi 56%)
*MI Berau Japan owns approximately 16.5% share of KG Berau Petroleum Ltd.



Working Interest:⎯

MI Berau : 22.9%(Tangguh Unit: 16.3%)⎯

KG Berau Petroleum : 12%(Tangguh Unit: 8.56%)(Operator : BP)

Berau Block
Kaimana

PSC: Until 2035

Development plan and extension of the PS contract were approved
by Indonesian governmentSigned loan agreements total US$3.5 billion to finance thedevelopment of the LNG project

LNG plant is scheduled to commence production in the last half of2008⎯

Scheduled to produce 7.6 million tons of LNG per year⎯

Signed long‐term LNG sales contract for Fujian⎯

Signed LNG sales contract with POSCO and K‐Power
Company of Korea⎯

Entered into LNG sales contract with Sempra of the USA

26

Masela (Abadi)

INPEX Masela, Ltd.
 INPEX’s Working Interest: 100.0%
 Operator: INPEX PSC:

Masela Block
esia
Indon
alia
A u s tr

Timor Sea
JPDA

Timor Sea⎯

10 years exploration period (until 2008)⎯

20 years development/ production
period (until 2028)

 Discovered gas in Abadi‐1 exploration wellin 2000
 Confirmed the extension of gas in the Abadi
structure by 2 appraisal wells in 2002
 4 wells appraisal drilling have been
conducted since May 2007 to evaluate
reserves
 Planning to start discussion with Indonesia
Government about Plan of Development of
the field

27

Bayu‐Undan INPEX Sahul, Ltd.
 INPEX’s Working Interest: 11.27%*1(Operator : ConocoPhillips)

East Timor
Timor Sea
Joint Petroleum
Development Area

*1 On, June 29, 2007, Timor Sea Designated Authority (TSDA) approved
the change from 10.57% to 11.27% as a result of re‐determination of thereserves between JPDA03‐12 block and JPDA03‐13 block, both of which
comprise Bayu‐Undan unit, in accordance with Bayu‐Undan Unit
Operating Agreement

 Production*2:(JPDA)⎯

Oil / Condensate: Approximately 70,000
bbl/d

Gas/Condensate Field⎯

Gas: Approximately 1.2 billion cf/d

Under

⎯

LPG: Approximately 39,000 bbl/dBayu‐Undan

JPDA 03‐12 block

water
gas pi
pe

line

Darwi
nÎ

 PSC: Until 2022
 As phase 1, development and production ofcondensate and LPG started in February 2004
 Phase 2 is LNG project in Darwin, theNorthern Territory, Australia. LNG sales
started in February 2006

Australia
0

＊2

50 km

All field base and average of March 2008⎯

Entered into LNG Sales Contract withTEPCO and Tokyo Gas(3 million tons per year for 17 years from
2006)
28

WA‐285‐P (Ichthys) INPEX Browse, Ltd.
INPEX’s Working Interest: 76.0%

Operator: INPEX

Concession Agreement:

PAPUA NEWGUINEA

Exploration Period until September 2009⎯

Production Period for 21 years from the grant of the production
license

Discovered gas and condensate accumulation in the Ichthys Structure by
three exploratory wells in the first drilling campaign from 2000 through2001

Confirmed gas and condensate reserves in the additional three
exploratory wells in the entire Ichthys Structure in the second drilling
campaign from 2003 through 2004

Commenced Australian federal and West Australian state government
approval processes for assessment of environmental impact of theIchthys project in May 2006

The Australian Government awards Major Project Facilitation(MPF)
status to Ichthys project in August 2006, as it provides a significant
boost to Australia’s employment and exports



Exploration Wells : Dinichthys North ‐ 1(Successfull) 2007

WA‐285‐P (Ichthys)

AUSTRALIA⎯

Ichthys West ‐1 (Drilling) 2008
Onshore locations for the LNG processing facilities are being
investigated

Plan to initially produce over 8 MMt/a of LNG and approximately 100
Mb/d of condensate and 1.6 MMt/a of LPG
29Permits Location – Ichthys(WA‐285‐P) and others

30

JPDA06‐105 Block INPEX Timor Sea, Ltd.
 INPEX’s Working Interest: 35%(Operator : Eni) PSC: Exploration phase until 2011
 Drilled 6 exploratory wells and 3 appraisal
wells since 1994. Oil flow of 6,100bbl/d on drill
stem test in Kitan‐1 (NFW*1) drilled fromJanuary to February 2008.
*1 NFW: New Field Wildcat
 Kitan discovery is currently being evaluated.

31

WA‐155‐P (Part I)(Van Gogh Oil Field/Ravensworth Oil Field )INPEX Alpha, Ltd.

 INPEX’s Working Interest: 28.5 % Concession Agreement:⎯ Exploration Period until February, 2009
⎯ Production Period for 21 years from the grant of the
production license
Ravensworth Field
 Operator :BHPBP Final investment decision was made in November 2007
 The field is to be developed by tie‐in to an FPSO in
License WA‐12‐R
Van Gogh Defined Area
 INPEX’s Working Interest:47.499%
 Operator : Apache Final investment decision was made in April 2007
 Scheduled to be put on stream in April 2009
 Daily production of approximately 60 thousand barrels
at peak production

32

ACG INPEX Southwest Caspian Sea, Ltd.
50km

The Caspian sea

Azerbaijan

ACG
ACG

Baku

ACG

Kazakhstan

Azeri
The Aral Sea
Uzbekistan

The Caspian Sea

Georgia
Armenia

Azerbaijan
Turkmenistan

Iran

＊

500km

 Production*: Approximately 770,000 bbl/d
 PSC: Until 2024
 Phase 1 : Starting oil production in the Central
Azeri area in February 2005

Deepwater portionof the Gunashli
ChiragRussia INPEX’s Working Interest: 10.0%(Operator : BP) Phase 2 : Starting oil production in the West
Azeri area in December 2005 and in the East
Azeri area in October 2006
 Phase 3 : Starting oil production in the
Deepwater Gunashli area in April 2008
 Planning to increase production level to 1
million barrels per day in 2009

All field base and average of March 200833

Kashagan, etc.

Kashagan Structure

INPEX North Caspian Sea Ltd.
INPEX’s Working Interest: 8.33% (Operator : ENI)

Basic agreement with the Government of Republic of
Kazakhstan on January 14, 2008*⎯ Construction of new operating and governance model⎯ All partners except for KazMunayGas (KMG) will diluteproportionally their participating interest allowing KMG’
stake to increase matching that of the major shareholders(Our participating interest would be 7.56% from 8.33%)⎯ Partial alternation on the financial conditions of the
production sharing agreement



PSC: Until the end of 2021**

Discovered crude oil in the Kashagan in June 2000

In addition to the Kashagan oil field, existence of hydrocarbon
was confirmed in the Kalamkas, Aktote, Kairan and Southwest
Kashagan structures

The first phase, currently in execution, is the Experimental
Program (EP), which will be followed by the Full Field
Development (FFD) program.



The full development of Kashagan field will peak to a new
production plateau of up to 1.5 million b/d, an increase of 25%compared to the initial estimates.

Kairan Structure

Caspian Sea

KashaganSouthwest Structure

Aktote Structure

RussiaKazakhstan

Kalamkas Structure

Turkey

China
Iran

India

＊

Further detail of the conditions are in process of discussion to reach settlement by theend of May, 2008**We have the options to extend the contract period by 20 years

34

BTC(Baku‐Tbilisi‐Ceyhan) Pipeline Project INPEX BTC Pipeline, Ltd.
 INPEX’s Working Interest: 2.5%

RUSSIA(Operator : BP)
Black Sea

GEORGIA

Tbilisi

BTC Pipeline

ARMENIA

CaspianSea

Baku

AZERBAIJAN
TURKEY

IRAN

SYRIA

MediterraneanSea Signed project finance contract to raise
capital for the construction of the pipeline in
February 2004
 Commenced crude oil export in June 2006
from Ceyhan terminal

CeyhanCYPRUS Obtained stock of the operating company(BTC Co.) through INPEX BTC Pipeline, Ltd.
in October 2002

IRAQ

 Complete commissioning work 1 million
bbl/d capacity in 2007 3Q
 Cumulative transportation volume reached
300 MM bbls by March 2008
 1.2 million bbl/d capacity expansion projectwill be completed in 2008 4Q

35

ADMA

Japan Oil Development Co., Ltd. (JODCO)

Production Oil Field
Underwater pipeline

ADMA Block
Umm Shaif Oil Field
Das Island

Lower/Upper Zakum
Oil Field

Satah Oil Field*Operating company established by ADNOC and other companies
including JODCO. JODCO has 12% interest in each company.

Zirku Island

Umm Al‐Dalkh Oil Field Umm Shaif / Lower Zakum− INPEX’s Working Interest: 12.0%(Operator : ADMA‐OPCO*) Upper Zakum / Umm Al‐Dalkh / Satah− INPEX’s Working Interest:
Upper Zakum / Umm Al‐Dalkh: 12.0%
Satah: 40.0% (Operator : ZADCO*)

Abu Dhabi

 Concession Agreement: Until 2018
(Contract of Upper Zakum extended from 2018
to 2026)
 Continuous development to keep andincrease the production level by− Water injection to all the fields− Gas injection to Umm Shaif / Lower
Zakum fields

36

Azadegan

Azadegan Petroleum Development, Ltd INPEX’s Working Interest: 10%(Continuing discussions in detail with Iranian side) Service Contract (Buyback Contract)
Tehran Two Phase Oil Field Development Project*

BaghdadAzadegan Oil Field
Iraq−

In phase 1, planned to reach 150,000
bbl/d in 2012−

In case we move onto phase 2, planned
to reach 260,000 bbl/d after 2015

Ahwaz

Kuwait

Iran
100km*All field base; timing of production start based on the premise that thedevelopment work start within 200837

Venezuela

Teikoku Oil & Gas Venezuela, C.A.
PT Moruy II, S.A.

Teikoku Oil & Gas Venezuela, C.A.
Copa Macoya / Guarico Oriental Blocks

Copa Macoya / Guarico Oriental Blocks
 Gas and Oil exploration and development
project

Caracas Joint Venture Agreement (2006‐2026)
 Teikoku’s Share*

PT Moruy II, S.A. **⎯Moruy II Block

Gas JV : 70%

Oil JV : 30%

 Production volume*
Venezuela⎯

Gas ： Approximately 74 million cf/d⎯

Crude oil ： Approximately 2,000bbl/dMoruy II Block Gas exploration project＊

All field base and average of March 2008**Joint venture company with PETROBRAS (50:50)

 Teikoku’s interest：50%(Operator PETROBRAS)
 Conducting G & G study
38

Mexico

Teikoku Oil de Burgos, S.A. de C.V.*

Cuervito / Fronterizo Blocks
 Gas development project Multiple Service Contract
 Teikoku’s interest：40%(Operator： PETROBRAS)
Teikoku Oil de Burgos*
Cuervito / Fronterizo Blocks

 Production volume** ：⎯Gas ： Approximately 31 million cf/d⎯

Crude oil ： Approximately 500bbl/d

Cuervito

Fronterizo＊

Teikoku’s share 75％＊＊

All field base and average of March 200839

Gulf of Mexico (USA)

Teikoku Oil (North America) Co., Ltd.

 Gas and Oil exploration and development
project
 Concession Agreement
 Teikoku’s interest：⎯

Ship Shoal 72 ： 25%⎯

West Cameron 401/402 ： 25%⎯

Main Pass 117/118 ： 10%

 Production volume*＊⎯Gas ： Approximately 24 million cf/d⎯

Crude oil ： Approximately 600bbl/d

All field base and average of March 200840

D.R. Congo

Teikoku Oil (D.R. Congo) Co., Ltd.

Offshore D.R. Congo Block

Offshore D.R. Congo Block Oil exploration and development
project
 Concession Agreement (1969‐2023)
 Teikoku’s interest：32.28%(Operator：Perenco)
 Production Commencement：1975
 Production volume*： Approximately
13,000 bbl/d＊

All field base and average of March 2008

41

The Egyptian Petroleum Development Co., Ltd.
Teikoku Oil Suez SOB Co., Ltd.
Teikoku Oil Nile NQR Co., Ltd.

Egypt

West Bakr Block
Cairo

River Nile

The Egyptian Petroleum
Development Co., Ltd. (EPEDECO)*West Bakr Block

Cairo

Teikoku Oil Suez SOBSouth October Block
Teikoku Oil Nile NQR
North Qarun Block

Oil and Gas exploration and development project

PSC： 1975‐ 2020+5years option



EPEDECO’s interest：100%(Operator)

Production commencement ：1980

Production volume**： Approximately 4,000bbl/dSouth October Block

Oil and Gas Exploration projectTeikoku’s interest：35% (Operator： Dana Petroleum)Conducting G & G study

North Qarun Block

Oil and Gas Exploration projectTeikoku’s interest：25% (Operator： Dana Petroleum)Preparing 3D seismic survey work＊

Teikoku’s share 52.7％＊＊

All field base and average of March 200842

Algeria

Japan Ohanet Oil & Gas Co., Ltd.
Teikoku Oil (Algeria) Co., Ltd.
Ohanet Block Gas development project Risk Service Contract(2000‐2011)
 JOOG’s interest：30%(Operator：BHPB)

Algeria Production commencement：Oct, 2003
 Production volume**

Japan Ohanet Oil & Gas (JOOG)*
Ohanet Block⎯

Dry Gas： Approximately 569million cf/d⎯

Condensate： Approximately 24,000bbl/d⎯

LPG： Approximately 2,200 bbl/d

El Ouar I/II Blocks
 Oil and Gas exploration and development
project

Teikoku Oil (Algeria)
El Ouar I/II Blocks

 Concession Agreement
 Preparing development of discovered oil andgas/condensate fields
 Teikoku’s interest：10.29%(Operator：ENI)＊

Teikoku’s share 15％＊＊

All field base and average of March 200843

LibyaTeikoku Oil Libya UK Ltd (81‐2, 82‐3 )INPEX Libya, Ltd. (42‐2 & 4, 113‐3 & 4)
 Oil and Gas exploration project

Tunisia Exploration and Production Sharing
Agreement : EPSA (Exploration period :5years)Mediterranean

Tripoli

Benghazi Working Interest

81-2, 82-3
42-2/42-4
Egypt

Algeria

Libya⎯ 81‐2, 82‐3：73%(Operator)⎯ 42‐2 & 4：40%(Operator：TOTAL)⎯ 113‐3 & 4 : 85% (Operator)

113-3 & 4

 Exploratory well drilling (81‐2, 82‐3)
 2D seismic survey in operation(42‐2 & 4)

Chad
Sudan

 Currently preparing for 2D seismic
survey(113‐3 & 4 )44

Joslyn Oil Sands Project

INPEX Canada, Ltd.
INPEX’s Working Interest: 10%

Operator：TOTALConcession Agreement (Lease)⎯7280060T24 : Indefinite⎯

7404110452 : 15 years primary lease from Nov 2004*⎯

7405070799 : 15 years primary lease from Jul 2005**Will be extended

7405070799



7280060T24

Oil Sands Upstream Project：⎯

Started production in late 2006 using SAGD
technology and expected to reach 10,000 barrels ofbitumen per day at plateau by 2009.

⎯

Large scale development by cutting off mining
development: Around 100 thousand barrels ofbitumen per day in the beginning of 2010’s (firstphase), to around 230 thousand barrels of bitumen perday (second phase)

7404110452(220km2)

Upgrader Project：⎯

Construction of upgrader plant in Edmonton, Alberta,
and producing 130 thousand barrels per day of lightsweet synthetic crude. The plant could becommissioned before 2015 (first phase)

45

Sakhalin I Sakhalin Oil and Gas Development Co.
05Sakhalin Oil and Gas Development Co. （SODECO）:
INPEX Holdings owns 5.75% of the total share(In the process to purchase to maximum 33% of the
SODECO’s share from the Ministry of Economy,
Trade and Industry which has inherited a 50% of the
SODECO’s shares from JNOC)SODECO’s Working Interest

10

Kilometers

Gas Field
Oil Field− Sakhalin I: 30.0%

OdoptuStructureProduction*:⎯ Crude Oil : Approximately 220,000 bbl/d⎯ Gas: Approximately 840 million cf/d

Sakhalin
IslandVal

ChayvoStructure＊

All field base and average of March 2008

Arkutun‐Dagi
Structure

Operator: ExxonMobil

Partners: ONGC Videsh, Sakhalinmorneftegas‐Shelf,
RN‐Astra

PSC: In Dec. 2001, “Commerciality Declaration” of the
project was authorized by the Russian government
and the project moved into development phase for 20
years



Commenced production in Oct. 2005; commenced
crude oil export in 2006

Commenced natural gas supply to Russian domestic
market, and considering natural gas supply to
Chinese and other markets
46

East China Sea

Teikoku Oil Co., Ltd.
 1969: Application of exploration rights
 1981, 1984: Seismic survey
 1992: Discovery of Pinghu by CNOOC,
Production commencement in 1998
 1997~1999: Seismic survey by JNOC
 2004~2005: Seismic survey by JOGMEC

Tianwaitian Field Apr. 2005: Starting a procedure of setting
exploration rights by METI, → We submit
promotion to set the rights of 3 Areas(Approximately 400km2) in application Areas(42,000km2) to Kyushu Bureau of METI
 Aug. 2005: Setting exploration rights of 3 Areas We have top priority and we watch a trend ofgovernment‐to‐government talks, in future work
realization, judge safe security after having
discussed it with the authorities.
47

Key Investments
INPEX HD
OwnershipCompanyJapan

Field / Project NameCountry

Stage

TEIKOKU OIL

Minami‐Nagaoka, etc. *

Japan

100%

Producing

INPEX

MahakamIndonesia

100%

Producing

INPEX Natuna

South Natuna Block ‘B‘Indonesia

100%

Producing

MI Berau B.V.

Berau(Tangguh LNG Project)

Indonesia

44%

Development

INPEX Masela

Masela(Abadi)*Indonesia

55.37%

Under discussion for Development

INPEX Sahul

Bayu‐Undan

JPDA

100%

Producing

INPEX Browse

WA‐285‐P(Ichthys)*

Australia

100%

JODCO

ADMA(Upper Zakum, etc.)

UAE

100%

Producing

Azadegan

Azadegan

Iran

100%

Development

INPEX Southwest Caspian Sea

ACG

Azerbaijan

51%

Producing

INPEX North Caspian Sea

Kashagan

Kazakhstan

45%

Development

Teikoku Oil & Gas Venezuela

Copa Macoya* / Guarico Oriental

Venezuela

100%

Producing

Teikoku Oil de Burgos

Cuervito / Fronterizo

Mexico75%

Producing

Teikoku Oil (North America)

Ship Shoal 72、West Cameron 401/402、Main Pass 117/118

USA

100%

Producing

Teikoku Oil (D.R. Congo)

Offshore D.R.Congo

D.R.Congo

100%

Producing

The Egyptian Petroleum Development

West Bakr*

Egypt

52.7%

Producing

Japan Ohanet Oil & Gas

OhanetAlgeria

15%

Producing

Teikoku Oil (Algeria)

El Ouar I/ II

Algeria100%

Under discussion for Development

Asia/Oceania

Preparation for Development

The Middle East

NIS

Americas

AfricaNote： *Operator project48

Key Contracts (1)FieldCountry or Region

Contract TypeMahakam/Attaka

Indonesia

Production Sharing Contract

South Natuna Sea Block ‘B’Indonesia

Production Sharing Contract

Berau（Tangguh）

Indonesia

Production Sharing Contract

Masela（Abadi）

Indonesia

Production Sharing Contract

JPDA03‐12 (Bayu‐Undan)

JPDA

Production Sharing Contract

WA‐10‐L (Griffin Fields)

Australia

Concession Agreement

WA‐285‐P(Ichthys)

Australia

Concession Agreement

North Caspian Sea(Kashagan, etc.)

Kazakhstan

Production Sharing Contract

ACG

Azerbaijan

Production Sharing Contract

Umm Shaif/Lower Zakum/
Zakum

UAE

Concession Agreement Upper

Azadegan

Iran

Service Contract

49

Key Contracts (2)FieldCountry or Region

Contract TypeCopa Macoya / Guarico Oriental

Venezuela

Concession Agreement(Joint Venture Agreement)

Cuervito / Fronterizo

MexicoService Contract

Ship Shoal 72,
West Cameron 401/402,
Main Pass 117/118

USA

Concession Agreement

Offshore D.R. Congo

D.R. Congo

Concession Agreement

West Bakr

Egypt

Production Sharing Contract

OhanetAlgeria

Service Contract(Risk Service Contract)

El Ouar I / II

Algeria

Concession Agreement

50

Others51

Production Sharing Contracts
1. Cost Recovery Portion Non‐capital expenditures incurred for
production and recovered during thecurrent period
 Scheduled depreciation of the capital
expenditures for the current period andrecovered during the current period Recoverable costs that have not been
recovered in the previous periods

Cost Recovery Portion

Host Country Profit Oil

Host Country
Share

Contractor
Profit Oil

Contractor
Share

2. Equity Portion (Profit Oil)

: Host Country Take
: Subject to Tax: Not Subject to Tax

Contractor Take52

Accounting on Production Sharing Contract
Cash Out

Assets on Balance Sheet

Income Statement

Project under exploration phase
Exploration Expenditures

Recoverable accounts under
production sharing
Project under development andproduction phase

Development Expenditures
Recoverable accounts under
production sharing
Production Costs(Operating expenses)
Project under development andproduction phase
Acquisition Costs

Exploration and development
rightsProvision for allowance forrecoverable accounts under
production sharing

Cost of sales Recovery of recoverable accounts
under production sharing (Capital
expenditures)

Cost of sales Recovery of recoverable accounts
under production sharing (Non‐Capital expenditures)
SG&A Depreciation and amortization
Other Expenses
 Amortization of exploration anddevelopment rights

53

Accounting on Concession Agreement
Cash Out

Assets on Balance Sheet

Income Statement

All exploration costs are
expensed as incurred
Exploration Expenditures

Development Expenditures

Production Costs(Operating expenses)

Acquisition Costs

Exploration expenses

Tangible Fixed Assets

All production costs are
expensed as incurred

Mining Rights

Cost of sales(Depreciation and amortization)

Cost of sales(Operating expenses)

Cost of sales(Depreciation and amortization)

54

Crude Oil Price($) 110
105
100
95
90
85
80
75
70
65
60
Apr.

May

Jun.

Jul.

2007

Aug.

Sep.

Brent

Oct.

WTI

Nov.

Dec.

Jan.

Feb.

Mar.

2008

Dubai

FY07.3

2007

2008

Ave.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Brent

65.08

67.60

67.86

70.54

75.82

71.24

76.94

82.60

92.20

91.44

91.91

94.66

102.87

82.14

WTI

64.89

64.04

63.53

67.53

74.15

72.36

79.63

85.66

94.63

91.74

92.93

95.35

105.42

82.25

Dubai

60.85

63.97

64.61

65.79

69.49

67.38

73.36

77.12

86.87

85.58

87.37

90.02

96.76

77.36

FY08.3Ave.

55

Factor Analysis of Change in Proved Reserves*(MMBOE)
2,000
1,800

29

28

19
△ 13

1,600

△ 34
△ 154

1,400
1,200
1,000
800

1,770

1,645

600
400
200
0
Mar. ‘07

Upgrade from
Probable
Reserves

Extensions andDiscoveries**(+)(-)
Revisions of previous
estimates

Impact of
Change in
Oil Prices

Productionin the Year
ended
March 31, 2008

Mar. ‘08* Proved reserve volumes are based on the reserve reports by DeGolyer and MacNaughton applying SEC regulation. Volumes attributable to the equity affiliates areincluded.
** Including acquisitions and sales

56

Definition of Proved Reserves Our definition of proved reserves is in accordance with the SEC Regulation
S‐X, Rule 4‐10, which defines proved reserves as the estimated quantities ofoil/gas which can be recovered with reasonable certainty in future years
under current economic and operational conditions based on geographicaland engineering data To be classified as a proved reserve, the SEC rule requires a market andmeans of economical production/processing/shipping to exist already or to
become available in near future. Thus, this definition is known to be themost conservative among the various definitions of reserves used in the oiland gas industry
 The SEC rule separates proved reserves into two categories; proved
developed reserves which can be recovered by existing wells andinfrastructure, and proved undeveloped reserves which require future
development of wells and infrastructure to be recovered57

Definition of Probable Reserves

 Probable reserves, which term is defined by SPE/WPC/AAPG/SPEE, are those
unproved reserves which analysis of geological and engineering datasuggests are more likely than not to be recoverable
 In this context, when probabilistic methods are used, there should be at least
a 50% probability that the quantities actually recovered will equal or exceed
the sum of estimated proved plus probable reserves
 The difference from the definition of proved reserves based on the SEC rule iswhether oil/gas can be commercially recovered with reasonable certainty.
Some part of the probable reserves are expected to be upgraded to proved
reserves by the progress of project maturity (commitment of financing,establishment of sales agreements etc.) and reduction in technical uncertainty
by addition of new technical data.

58

Estimate of Exploration Expenses/Provision for Allowance for Recoverable
Accounts under Production Sharing(Billions of yen)

57.7

60

50.7
50
23.6
40
30
20

22.2

26.8
9.1
34.0

10

The amount will decrease by 7.0 billion yen
in the year ending March 31, 2009 mainly
due to the decrease of exploration costs in
Joslyn and Abadi project.

28.4

17.6

0
Mar. '07

Mar. '08

Mar. '09 (E)for allowance
for recoverable
accounts
sharing* (PS contract)
ProvProvision
ision f or allowancef or recov erable
accounts under
productionundersharingproduction(PS
contract)
Exploration
expenses(concessionagreement)
agreement)
Exploration
expenses(concession*Including Provision for exploration projects

59Four companies (INPEX Holdings, INPEXCORPORATION, Teikoku Oil and Japan Oil
Development Company) will move to thefollowing address in late September.
New Address：
5‐3‐1, Akasaka, Minato‐ku, Tokyo 107‐6301, Japan
Akasaka Biz Tower 31‐34 Floor

60