Note: The following is an English translation of the Japanese-language original
May 13, 2021
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Japan Petroleum Exploration Co., Ltd. (JAPEX)
1662 (First Section of the Tokyo Stock Exchange)
Masahiro Fujita, Representative Director and President
Corporate Communication Office+81-3-6268-7110

Formulation of “JAPEX2050” for the Realization of a Carbon-Neutral Society in 2050
Japan Petroleum Exploration Co., Ltd. (JAPEX) hereby announced that it has formulated “JAPEX2050: Toward aCarbon-Neutral Society” (hereinafter “JAPEX2050”), which sets forth JAPEX’s direction as a comprehensive energy
company in light of the government’s “Realizing Carbon-Neutral Society in 2050” initiative.
JAPEX’s mission is to provide a stable supply of energy, and to complement its longstanding core business of E&P(Exploration and Production) and supply of oil and natural gas. On top of this, it is working to transform its businessstructure to grow as a “comprehensive energy company” in light of worldwide calls for a decarbonized society. To
date, JAPEX has participated in demonstration tests aimed at the practical application of carbon dioxide (CO2) captureand storage technologies, strengthened its renewable energy business organization, and commenced operation of anatural gas power plant in which it is the lead participant, in addition to promote fuel conversion to natural gas withlower environmental impact compared to the other fossil fuels.
JAPEX2050 provides a fresh outline of the responsibilities and challenges that JAPEX must take on in order toachieve the goal of net-zero CO2 emissions by 2050 worldwide, and presents a clearer direction for JAPEX’s future
actions and business development. By steadily implementing JAPEX2050, JAPEX will pursue new possibilities forthe stable supply of energy in the carbon-neutral society, while aiming for further growth as a comprehensive energycompany.
Below is a summary of JAPEX2050. For more details, please refer to the appendix.
Outline of “JAPEX2050: Toward a Carbon-Neutral Society”[GHG emission reduction target]Achieve net-zero emissions (Scope1 + Scope2) from JAPEX operations in 2050
 As a first step, reduce the CO2 emission intensity of JAPEX operations by 40% in FY2030 compared toFY2019.

Strengthen line of business that contribute to the reduction of our supply chain emissions (Scope3)
 Contribute to establish new technologies and energy supply with lower environmental impact, for reducing
CO2 emissions in our supply chain.

Page 1 / 2

[Focused efforts to realize a carbon-neutral society]1.

Turn carbon neutral into a profitable business based on CO2 injection and storage technology
 Aim to achieve the early implementation and commercialization of CCS (Carbon dioxide Capture andStorage)/CCUS (Carbon dioxide Capture, Utilization, and Storage) as a pioneer in Japan.
 Make the most of JAPEX strengths accumulated through oil and natural gas E&P in exploring andselecting candidate deep saline aquifers* for implementations, drilling injection wells, and monitoring
stored CO2.
 Make contributions to CO2 transportation by leveraging our experience and expertise in natural gas andLNG (liquefied natural gas) supply.
 Strive to collaborate and enter into carbon-neutral businesses areas, where synergies with CCS and CCUS
can be expected.
Focus on BECCS (Bio-energy with Carbon Capture and Storage) and natural gas-fired power plants
with CCS as assumed areas of collaboration Consider entering into business areas of carbon-recycling, including blue hydrogen and methanation.

2.

Expand participation in renewable energy projects
 Aim to increase renewable energy projects in which JAPEX participates while utilizing knowledge andexperience in conventional businesses.
 Increase the business opportunities and examine commercialization, mainly in biomass power
generation leveraging experiences in natural gas power generation business and offshore wind power
generation which have an affinity with knowledge and experience of E&P.

3.

Stable supply of oil and natural gas
 Recognizing that oil and natural gas will remain as one of the major energy sources worldwide, continue
to meet the demand for them.
 As a comprehensive energy company, aim to achieve a carbon-neutral society through the use ofCCS/CCUS and other decarbonization technologies, rather than through a complete shift away from oiland natural gas.
 Participate in natural gas development projects and consider employing CCS/CCUS in them.
 Horizontally deploy various supply methods for natural gas and LNG to meet demand for fuel switchingfrom coal and heavy oil.

Note)
*Deep saline aquifer: Sandstone layer in deep underground that includes ancient sea water (salt water) which are not suitable for drinking.
Its geographical distributions are broader compared to oil and natural gas reservoirs, and CO2 storage capacity is anticipated.

Appendix: “JAPEX2050: Toward a Carbon-Neutral Society as a Comprehensive Energy Company”

Page 2 / 2Appendix

Toward a Carbon-Neutral Society

May 13, 2021
Japan Petroleum Exploration Co., Ltd.
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Background of “JAPEX 2050” Formulation～Reorganized our responsibility and role for the Carbon-Neutral Society
JAPEX’s efforts under the mission of “stable energy supply”
Oil and gas E&P*, and natural gas supply as lower environmental impact fuel for many years

Foundedin 1955

* Exploration and Production

Exploration and production in domestic oil & gas fields/
Participation in overseas E&P projects
Construction and operation of domestic natural gas supply network

Long-term visionin May 2018

Commenced a natural gas power plant/
Established organization for renewable energy,
New Business, and Environmental Business

October 2020

Target Settingby theGovernment

Growth as a “Comprehensive Energy Company”
by electricity and business with lower environmental impact

Aims to achieve net-zero GHG emission by 2050

“JAPEX2050 ~ for the Realization of a Carbon-Neutral Society ~”formulated in May 2021



Reorganized efforts to date, clarified our responsibility and focus area toward the carbon-neutral society
Pursue new possibilities as a “Comprehensive Energy Company” that contributes to realize net-zero in 2050

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1Outline of “JAPEX 2050”
Specified JAPEX’s target and focused contribution areas toward 2050



GHG Emission Reduction Target

Contribution Areas for Net-zero

Scope1+2CCS/CCUS

Reduce by 40% in FY2030 compared to FY2019 ofCO2 emission intensity of the JAPEX group’s operations
Achieve the net-zero CO2 emission of our group’s
operation in 2050

Realize and commercialize CCS/CCUS technologies
Enter the business areas related to CCS/CCUS, such as
blue hydrogen, methanation, and natural gas-fired
power plants with CCS

Renewable Energy

Scope3 Contribute to establish new technologies andenergy supply with low environmental impact, forachieving the net-zero CO2 emission in our supply chain



BECCS (Biomass power generation with CCS/CCUS
that enables negative emissions)
Offshore wind power generation to leverage our E&P
experience and expertise

Stable Supply of Oil and Natural Gas
Natural Gas Use PromotionInterest Acquisition and Development

Respond to the demand for fuel switching from otherfossil fuel such as coal and heavy oil
Strengthen our responses for meeting various future
demands to LNG

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

2Recognize that oil and natural gas will remain as one ofthe major energy sources
Focus on the acquisition of oil and gas interests, as wellas its development and production continuouslyAbout CCS/CCUS
Reducing CO2 emission by capture, injection, and storage underground
CCS: Carbon dioxide Capture and Storage
CCUS: Carbon dioxide apture, Utilization, and Storage
Proceeding examination and verification for implementation worldwide to achieve “net-zero” by 2050



In Japan, undertaking verifications including a large-scale governmental one at Tomakomai, Hokkaido
JAPEX has been participating in the Tomakomai CCS verification test as the top shareholder of Japan CCS Ltd.

Flowof CCS

Elements

Capture CO2
beforeemission
to the air

Transport CO2 to storage locations by pipelines and other methods

Inject CO2 from welland store itunderground

Capture CO2

Transport CO2

Inject and Store CO2

Building CO2 separation plant

Constructing
CO2 transportation pipelines

Selecting locations for CO2 storage
Drilling injection wells
Monitoring status of injection/storage

CCS/CCUS has high affinities with E&P which are JAPEX’s significant strengths
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3Our Capabilities and Possibilities in CCS/CCUSAiming the early realization of CCS/CCUS as a pioneer in Japan
Subsurface investigation (Geophysical Exploration)

Well drilling from land to subseafloor

Well management/monitoring

Select candidate locations for CCS/CCUS, and execute CO2 injection, storage, and monitoring Technical capabilities to complete all elements in the JAPEX group for realization including exploration, drilling, and monitoring Utilize the data concerning deep saline aquifers*, acquired by our investigations and explorations in Japan

Capture CO2

Utilize CO2

Transport CO2

Transport separated and captured CO2

Inject and Store CO2Collaborate and Enter Carbon-Neutral Business Apply CCS/CCUS to power generation by gas and biomass
 Consider to enter blue hydrogen and methanation business Establish CO2 transportation infrastructures leveraging
our expertize in natural gas and LNG supply

Focus on gasfired and biomass
plant, including
facility owned byother companies

Such ashigh-pressure gas pipeline
and coastal vessels[Blue Hydrogen]
Discompose
natural gas,and capture CO2
after production

H2[Methanation] Produce
Methane (CH4)from H2and CO2

CH4Note) * Sandstone layer in deep underground that includes ancient sea water (salt water) which are not suitable for drinking. Its geographical distributions are broader compared to oil and natural gas reservoirs, and CO2 storage capacity is anticipated.

Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

4

Lower Environmental Impact Energies
Strengthen our response to increasing demands for specific energies
Participation in Renewable Energy Projects
Increase and examine candidates mainly biomass and offshore wind power while utilizing our conventional capabilities

Biomass Power GenerationOffshore Wind Power Utilize expertise in natural gas power project• Process management of plant construction• Procurement of fuel LNG, and others＋CCUS/CCSCollaboration

 Utilize expertise in oil and natural gas E&P• Offshore platform operation and management• Subsurface examination of installation location

 Consider to apply BECCS* in biomass power generation plants* Bioenergy with Carbon Capture and Storage

Respond to Demands for Natural Gas with Lower Environmental Impact
Expand gas utilization as well as conduct natural gas E&P and LNG procurement, with assumption of its long-term gas demands

Stable Natural Gas Production and Supply

Respond to Increasing Natural Gas Demand Acquire new overseas interests/
new and additional development in Japan Flexible and competitive LNG marketing• Consider carbon-free LNG procurement Demand for switching from coal and heavy oil• Such as power plants and large scale facilities• Horizontal expanding various supply methods
including overseas＋CCS/CCUSCollaboration

 Consider to apply CCS/CCUS to natural gas power plant Challenge to enter blue hydrogen and methanation business areas

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5Business Assumptions toward 2050
CCS/CCUS centered business cycle toward the carbon-neutral society
Clients: Achieve the CO2 Net-zero by various energy utilization and CCS/CCUS
Oil and Natural Gas

Promotefuel shift
to naturalgas

HydrogenChallenge areas
to expand/collaborate/enter

Blue Hydrogen
Production

CO2
Separation
and Capture
Venue

Electricity

Carbonrecycling
Production
Venue

CO2
Transportation

Methanation

Capture before emitted into the airfrom plants and large facilities

Gas Power
Generation
Gas Power
Generationwith CCS

CO2Transportation

As a raw materialof the carbon-neutral products

Renewable Energy
BiomassOffshore
Wind Power

BECCS(with CCS)

CO2Injectionand Storage
Venue
CCUS: Improve Oil/Gas Recovery
CCS: Injection and Storage

Oil and Natural Gas Exploration, production, and Supply

JAPEX’s significant strengths
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Including new oil and gas interests acquisitionand efforts to reduce CO2 emission basic unit in our operation

6

Roadmap toward 2050
Reduce Scope1+2 emission intensity and implement CCS/CCUS in 2030
GHG Emission
Reduction Target

Reduce Scope1+2 emission intensity by 40%
compared to FY2019

Achieve the net-zero emissions by 2050

Consider to implement CCS/CCUS
at JAPEX’s domestic oil and gas fields

CCS/CCUS

Commercialize CCS/CCUS in Japan
Location surveys and implement examinationof CCS/CCUS in deep saline aquifers* in Japan
Commercialize carbon-recycling businesses

Consider and verify carbon-recycling projects

Other Areas
to Contributetoward Net-zero(by own and/or cooperation for supplying raw material)

Increase renewable energy source and supply

Power plants with CCS

Stable electricity supply from the natural gas power plant

Stable Supplyof Oiland Natural Gas(Natural gas-fired and BECCS)Enhance natural gas and LNG utilization, including carbon-neutral LNG supply
Acquire new overseas interests with focus to natural gas and including CCUS,
Continue development and production aiming the demands

2030

2021

2040Note) * Sandstone layer in deep underground that includes ancient sea water (salt water) which are not suitable for drinking. Its geographical distributions are broader compared to oil and natural gas reservoirs, and CO2 storage capacity is anticipated.

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