CSR Report2009Company Overview

Financial Information

Company Name: INPEX CORPORATIONNet Sales

Established: April 3, 2006

(Million yen)

The former INPEX CORPORATIONThe current INPEX CORPORATION

1,500,000

Capital: 30 billion yen

969,712stth

Head Office: Akasaka Biz Tower 31 to 34 floors, 5-3-1 Akasaka,
Minato-ku, Tokyo 107-6332 Japan

1,000,000

Fiscal Year End: March 31
Main Businesses: Research, exploration, development,
production and sales of oil, natural gas
and other mineral resources, other related
businesses and investment and lending to thecompanies engaged in these activities, etc.

2005

Net Income

60,000
0

2006

2007

The former INPEX CORPORATIONThe current INPEX CORPORATION

180,000
120,000

1,076,164

100,7160(Million yen)

1,202,965

704,234

500,000

Telephone: +81-3-5572-0200

The former Teikoku Oil Co., Ltd.

165,091

173,245

2006

2007

2008

(Fiscal years)

The former Teikoku Oil Co., Ltd.

145,062

103,476
15,485
2005

2008(Fiscal years)

We are committed to playing our role insupporting the sustainable developmentof society through a stable and efficient
supply of energy

Editorial Policy
Let us update you on the activities that the INPEX Group
undertakes for its diverse stakeholders under our themes ofcorporate social responsibility (CSR) built around the health,safety and environment (HSE) framework.
The INPEX Group publishes its CSR Report annually to keep its
stakeholders informed of CSR initiatives and activities.
A third-party reviewer of the CSR Report 2008 commented, “the Group,with its many ongoing projects around the world, (should) provide a moredetailed report on its challenges and initiatives for CSR outside Japan,
as well as on environmental performance data for overseas projects…
the Group (should also) consider using its website more effectively tocomplement the printed Report.” We have incorporated those ideas into
the CSR Report 2009 under the following new editorial policy.
1. To discuss a host of stakeholder-relations programs and activities
initiated under each theme of CSR, in addition to activities directly
related to HSE.
2. To add a feature story section in which to discuss our activities tomaintain and promote sound community relations in oil- and gasproducing areas.
3. To discuss significant CSR activities in this report and post others in

2

INPEX Corporation CSR Report 2009

our website along with environmental performance data compiled inoverseas project sites.

Scope of Reporting and Data Compilation•INPEX CORPORATION and its 54 consolidated subsidiaries.
•Environmental performance data for the Group’s domestic operations
published in this report are a compilation of data from the Company’s
Domestic Project Division, Teiseki Pipeline Co., Ltd., and Teiseki
Topping Plant Co., Ltd.; and 50% of performance results of Offshore
Iwaki Petroleum Co., Ltd. were added to the total, in proportion to theCompany’s ownership of a working interest.

•Environmental performance data for the Group‘s overseas operations

published on pages 24, 25, 34 and 35 of this report are a compilation ofdata from Gas Guarico, S.A., West Bakr Petroleum Co., INPEX Masela, Ltd.,INPEX Browse, Ltd., INPEX Libya, Ltd., and Teikoku Oil Libya U.K. Ltd.

•The Company’s Domestic Project Division and Offshore Iwaki Petroleum
Co., Ltd. have signed on to the program to reduce greenhouse gas
emissions called for by Keidanren Voluntary Action Plan on theEnvironment. (Greenhouse gases emitted during a decarbonation
process at the Minami Nagaoka Gas Field not included.)•The Company’s Domestic Project Division, Teiseki Pipeline Co., Ltd., andOffshore Iwaki Petroleum Co., Ltd. participate in the program to reduceTable of Contents
A Message from the President
Corporate Mission, CSR Policy and Code of Conduct

Net Production by Region
Americas4%Middle East and Africa
36%

Japan
8%
Total

405
thousand
BOEPD 1

Asia and Oceania
46%

Our Themes of CSR and Stakeholders
Business Activities
Corporate GovernanceCompliance

Eurasia6%

Proven Reserves by Region 2

4
6
7
8
10
11

Feature Story

Americas
2%

Japan
9%

Eurasia13%

Maintaining and Promoting
Sound Community
12
Relations in Oil- and Gasproducing Countries

1 Barrels of oil equivalent per day

Activity 1: Cultural Exchanges to Deepen Mutual

Middle East and Africa
43%

Total

1,598

Asia and Oceania
33%

MBBOE 3

2 Proven reserves are evaluated in accordance with SEC regulations, and do
not include those that are not eligible for third-party deposit evaluation
reports, nor those undergoing related governmental approval processes,
but do include proved reserves owned by equity method affiliates.

Understanding between Japan and Host
Countries
Activity 2: Social and Economic Improvement Projects forCommunities

3 Million barrels of oil equivalent

13
14

Activity 3: Community Relations Programs

16

Activity 4: Keeping Stakeholders Informed of our Business

17

Fulfilling Commitments with
Diverse Stakeholders

18

Health, Safety and Environment (HSE)
A Message from the Representative
Director in Charge of HSE

19

HSE Management System

20

Corporate HSE Objectives

22

Environment Environmental Impact Resulting fromour Business Activities in 200824

Preventive Measures against Global
Warming

26

Conserving Biodiversity

30

Reducing Waste and Preventing Soil
Contamination

31

Controlling Chemical Emissions

32

emissions of volatile organic compounds called for by the Japan
Natural Gas Association.

Research and Development for Reducing
Environmental Loads

33•Data on freight volume was provided by the Company’s

Environmental Performance Data by Site

34

Ensuring Operational Safety

36

Emergency Response System

38

Employee Health Management

39

Domestic Project Division.

SafetyReporting Period•April 1, 2008 to March 31, 2009 (This report may containreferences to activities we undertook in April, May and June
2009.)

Forward-Looking Statements
This report includes forward-looking information that reflects the plans andestimates of INPEX CORPORATION and its affiliates (hereinafter called the
INPEX Group). Such forward-looking information is based on assumptions
and beliefs of the INPEX Group in light of information currently available, andinvolves known and unknown risks, uncertainties, and other factors. Such risks,
uncertainties and other factors may cause the INPEX Group’s actual results,
performance, achievements or financial position to be materially different fromany future results, performance, achievements or financial position expressed or
implied by such forward-looking information.
Please be advised that the INPEX Group shall assume no responsibility for suchrisks.

HealthHuman Resources Management40

Product Safety

42

Improving Supply System and Customer Service

43

Fair Trade

44

Information Disclosure

45

Community Support Economic Assistance46

Social Action Programs

47

Donations and Sponsorship

48

Third-Party Comment

49
50

List of Indicators Based on GRI G3 Guidelines

INPEX Corporation CSR Report 20093

A Message from the President

We enrich society with a stable and efficient supply of energy

INPEX Group is committed to fulfilling
its role in supporting the sustainable
development of society
INPEX Holdings Inc. merged with INPEX CORPORATION
and Teikoku Oil Co., Ltd. to become the new INPEXCORPORATION on October 1, 2008. With this merger, wehave consolidated corporate headquarters functions andfully integrated the organizational structure to facilitate
more efficient and flexible management of the company.
The INPEX Group has a mission to provide customers
with a stable and efficient supply of energy sources—
primarily oil and natural gas—so as to bring a better qualityof life to society. In carrying out this mission in 74 projects
in 26 countries (as of June 30, 2009), we firmly believe indemonstrating a sense of ethics, giving highest priority
to safety and environmental preservation in operations,and contributing to the communities where we operate.

Naoki Kuroda

Accordingly, we play our role as a good corporate citizen in

President
INPEX CORPORATION

continuing a close dialogue with diverse stakeholders andsupporting the sustainable development of society. This,
we believe, is what CSR is all about.

Helping to tackle global warming is our
responsibility as an E&P company
As the Intergovernmental Panel on Climate Change (IPCC)
has reported, global warming has become a formidable
challenge that all of mankind must work together to takeup. The 15th Conference of Parties (COP15) to the United
Nations Framework Convention on Climate Change isscheduled to be held in Copenhagen in December 2009
to establish a new global climate agreement for the period
beyond 2012 when the Kyoto Protocol expires. In June
2009, the Japanese government announced its mediumterm goal of reducing domestic greenhouse gas (GHG)
emissions by 15% by 2020 below the 2005 level. There will
be accelerated efforts in the international community toestablish a framework for achieving a low-carbon society.

4

INPEX Corporation CSR Report 2009

The INPEX Group adopts rigorous pro-environmental

and efficient supply of energy so as to bring a better

policies and practices in the E&P business, while

quality of life to society, thus fulfilling our role in supporting

attempting to improve productivity at project sites so as

the sustainable development of society.

to emit fewer GHGs. We will also commit greater resources
to developing natural gas—a clean energy source thatgenerates less CO2 when burned than oil does. In addition,

Ensuring that every officer and employee
is aligned to the CSR cause

we are stepping up our engineering efforts to implement
carbon capture and storage—an approach endorsed

In April 2006, we established the Mission, which statesby the IPCC to reduce CO2 emissions—and to generate

where the Group is going and what role the Group will playmethane using microbes found in depleted oil fields.

in social development, and the CSR Policy, which promotes
CSR initiatives and reaffirms the Group’s commitment

Going forward with three strategies

to them, both intended to lay the solid groundwork forthe group-wide CSR initiatives. When the new INPEXWhen the new, fully integrated INPEX CORPORATIONCORPORATION became operational in October 2008, we

became operational in October 2008, the Group

completely updated the Compliance Manual, in which theestablished three strategies. They are: (1) To continue to

Code of Conduct discusses how every officer and employee

expand the oil and gas upstream business; (2) To establishof the Group should perform ethically on a daily basis. We

a natural gas supply chain and diversify the gas business;ensure that all officers and employees fully understandand (3) To become a company that offers a broader range

what the Mission, the CSR Policy and the Code of Conductof energy.

represent. In addition, we have incorporated into the newFirst, in our core business of developing oil andemployee assessment system the value evaluation criteria

natural gas, we will work more closely with other leading

to appraise an employee’s behavior and attitude toward

players in the international arena to maintain or increase

the values in which the Company believes in support of the

our recoverable reserves of oil and natural gas to securesustainable development of society; the criteria state thatprimary energy sources. Second, we will set up an efficient

every one of our employees has an obligation to uphold

natural gas supply chain that links gas sources inside andstrong business ethics and to have high moral standards as

outside Japan to the domestic market with LNG receivinga member of a company that serves society. These are all

terminals and an expanded pipeline network. We will

intended to foster greater awareness and appreciation ofalso diversify the natural gas business to attract more

the CSR cause among all officers and employees.

customers to this clean energy source. Third, we will strive

In this report, we have selected subject mattersto become a company that offers customers a broader

of greater significance for inclusion so as to give you

range of energy; in an effort to make a low-carbon society

a comprehensive snapshot of our CSR initiatives anda reality, we will continue to assess the commercial viability

activities. To complement the printed report, we haveof making new application of conventional hydrocarbon

posted on our website additional reports that discuss ourfuels, such as GTL (gas-to-liquids) processing and DME

CSR activities outside Japan and provide more detailed(dimethyl-ether) processing, and commercial viability of

information and statistics. We hope that you find thealternative and renewable energy sources.

printed and online reports informative and we also

With this three strategies as a guiding framework, wewill fulfill our mission to provide customers with a stableappreciate your feedback and comments.
Thank you.

INPEX Corporation CSR Report 20095

Corporate Mission, CSR Policy and Code of Conduct

We play an active role in supporting the sustainable developmentof society, as our Corporate Mission and CSR Policy proclaim
Upon the merger of INPEX CORPORATION and Teikoku Oil Co.,

CSR initiatives and reaffirms our commitment to promoting

Ltd., the INPEX Group newly formulated the Corporate Mission,

them; and the Code of Conduct discusses how every officer and

CSR Policy, and Code of Conduct.

employee of the Group should perform ethically on a daily basis.
WEB Visit our website for the complete text of the Code of Conduct.

Our Corporate Mission reflects our objective of playing an

http://www.inpex.co.jp/english/csr/

active role in social development; the CSR Policy directs our

MissionThe mission of the INPEX Group is to provide a stable and efficient supply of energy to the customers
by exploring and developing oil and natural gas resources throughout the world.
Through its business, we aim to become an integrated energy company, which contributes to thecommunity and makes it more livable and prosperous.

Corporate Social Responsibility Policy
The INPEX Group conducts business efficiently and proactively with a long-term perspective.
Guided by the leadership of top management, we are committed to fulfilling our corporatesocial responsibilities. Our key principles include:
1 Deliver energy in a stable and efficient manner.

4 Value the individuality of employees, secure a safe,
healthy and worker-friendly environment, and provide

2 Comply with laws, rules and regulations and adhere toopportunities for career development.

ethical business conduct.
5 Recognize our responsibility to help preserve the
3 Communicate timely and openly with shareholders,environment and contribute to sustainable development.

employees, customers, business partners and otherstakeholders.

6 Contribute to the development of host countries andcommunities, based on the understanding of cultural
diversity.

Code of Conduct
Every officer and employee of the Group fully understands and strictly
follows the articles of this code of conduct to achieve appropriate
management and fulfill its responsibilities as a decent member of society.
1 Compliance with Laws and Ordinances

5 Respect for Employees

2 Respect for Human Rights

6 Approach to the Environment, Safety and Health

3 Contributions to Society

7 Securing the Soundness of Company Assets and Finances

4 Respect for Business Ethics

6

INPEX Corporation CSR Report 2009

CSR and Stakeholders Themes

We conduct our business activities always with our stakeholders
in mind
We are committed to providing society with a stable and efficient

our business. We are engaged in a host of stakeholder-relations

supply of energy in an environmentally friendly manner. To

programs built around the HSE framework.

fulfill this commitment, we find it imperative to work closely

WEB Visit our website for details of our CSR activities.
http://www.inpex.co.jp/english/csr/

with stakeholders who are directly or indirectly associated with

Sourcing policy for all purchases•fromsuppliers uP44
Ensuring
fair trade practices inside•and outside
the company uP44

Upgrading contractors’ HSE•management
uP37
Cultural exchanges to deepen•mutualunderstanding
Contractors

Suppliers

Keeping shareholders and•investors
informed uP45
Investor relations•activities
uP45

Employees

Fair and accurate employee•evaluation
uP40
Training and development•programs
for employees uP41••
Community
SupportH

Shareholders
and Investors

Human
Resources
Management•

Fair Trade

Information
Disclosure

Oil- and
Gas-Producing
Countries

HealthS

SafetyE

Environment

Improvementof Supply
System andCustomer
Service

Product
Safetybetween Japan and hostcountries uP13
Social and economic
improvement projects forcommunities uP14
Community relations
programs uP16
Keeping stakeholders
informed of our business uP17

Customers

Increasing supply capacity of•naturalgas and LNG uP43
Listening to customers so as to•provide
better service uP43

Donations
andSponsorship

Local
Communities
and NGOs

Maintaining open dialogue with•communities
uP47
InvitingaVenezuelan•perform in Japan uP48youth orchestra tofor communities devastated•byDonations
a massive wildfire in Australia uP48

INPEX Corporation CSR Report 20097

Business Activities

We are engaged in the energy-supply business on a global basis,
ranging from the acquisition of license blocks to the sale of products

Acquisition of License Blocks

Exploration and Evaluation

Activities

Activities• Collect extensive information on areas likely to contain oil andnatural gas• Conduct preliminary technical evaluations of the areas using• Collect information on potential subsurface accumulations of

•
•

•
•

documented materials publicly and commercially available,
followed by an assessment of the legislative, political and economic
stability and site requirements of the areas
Apply and bid for concession rights and/or working interest
Conclude contracts for the licensed blocks•••

oil and natural gas using terrestrial geological surveys, aerial
photographs, satellite images, and other data
Conduct geophysical surveys, including gravity, magnetic,
and seismic surveys, to extract prospects of oil and natural gas
accumulations
Determine locations of exploration wells at the prospects, and drill
wells to confirm the existence of oil and natural gas fields
Drill delineation wells to evaluate
the extent of the detected oiland natural gas fields
Analyze subsurface information
to confirm the lateral continuityof oil and gas reservoirs and to
estimate reserves
Determine the commercial
viability of developing the fields Drilling an exploration wellSigning a contract

Initiatives for Stakeholder Relations

Initiatives for Stakeholder Relations• Enforce anti-bribery and corruption policies• Respect human rights• Preserve the ecosystem • Nurture human resources• Help develop social infrastructure • Help develop industries• Manage health and safety practices • Preserve the ecosystem• Protect local cultural heritage• Ensure compliance with laws and regulations• Respect human rights • Respect local cultures and customs• Help develop industries

Minami Nagaoka
Gas Field

Offshore Mahakam Block
Abadi Gas Field
ACG Oil Fields/
Kashagan Oil Field
ADMA BlockWest Bakr Block

8

INPEX Corporation CSR Report 2009

Ichthys Gas andCondensate Field

Development and Production

Refining, Shipment and Sales

Activities

Activities• Devise development plans for oil and natural gas fields• Drill production wells to commercially recover oil and natural gas• Construct processing facilities to separate gas and liquid and to filter
out impurities, as well as loading terminals for oil and natural gas• Produce oil and natural gas

Crude Oil

• Crude oil produced in Japan is transported by tanker trucks to••
Oil platform in ADMA Block, the United
Arab Emirates

Gas-processing facility at Koshijihara Plant
in Niigata Prefecture, Japan

Initiatives for Stakeholder Relations• Keep local communities informed of the projects• Reduce environmental loads • Preserve the ecosystem• Protect local cultural heritage • Manage health and safety practices• Secure a stable supply of oil and natural gas• Help develop local economy• Ensure compliance with laws and regulations• Respect local cultures and customs• Conduct fair purchasing practices with suppliers

our refineries, where it is refined into petroleum products suchas gasoline, naphtha, kerosene, light oil, heavy oil and liquefied
petroleum gas (composed mostly of propane and butane), which
are then sold and shipped to customers on oil tankers and tanker
trucks
Crude oil produced outside Japan is sold and shipped on oil tankers
or via pipelines to refineries and/or trading companies for refining;
to power companies for use in thermal power plants; and topetrochemical companies for manufacturing of chemical products
Swap crude oil with other international oil companies to meetcustomer needs

Natural Gas• Domestic natural gas is sold to gas companies and large factories
via pipelines• Natural gas produced outside Japan is sold either to power and•gas companies primarily in Japan as liquefied natural gas (LNG,
composed mostly of methane) and LPG; or to gas-producing
countries and their neighbors via pipelines
In 2014, the Naoetsu LNG Receiving Terminal, currently underconstruction, will begin receiving LNG produced overseas for resalein Japan through the domestic gas pipeline network as part of a gas
supply chain

LNG tanker at loading terminal

Tanker truck leaving oil refinery

Copa Macoya Block

Initiatives for Stakeholder Relations• Manage health and safety practices• Reduce environmental loads• Ensure safety during transportation• Secure a stable and reliable supply of energy• Prevent unfair competition
E&P projects undertaken by INPEX Group
companies and equity-method affiliates

INPEX Corporation CSR Report 20099

Corporate GovernanceWe spare no effort to enhance corporate governance so as tomaintain greater management efficiency and soundness
Overview of Our Corporate Governance
At INPEX CORPORATION (hereinafter referred to as “thereports . They are also responsible for auditing the directors’Company”), the Board of Directors meets once a month or as

execution of their duties in day-to-day operations and individual

needed, to review and make decisions on the execution ofprojects. Three of the five statutory auditors are chosen fromimportant business operations, and to oversee the directors’

outside the Company for their wealth of experience andexecution of their duties. In addition, we hold a Management

knowledge in both the E&P business and finance.

Committee meeting once a week or more to facilitate

We have the Internal Audit Unit in place, which isdecision-making on matters that are not subject to the

independent of our business divisions and reports directly toapproval of the Board of Directors, and to submit proposals

the President to ensure the appropriateness and efficiency ofand recommendations to the board for review and approval.

business activities. The Unit reviews and evaluates the status ofFurthermore, we established the Executive Officer System on

management bodies and the efficiency in business operations,

October 1, 2008, to make the management structure more

identifies problems areas, submits reports to management, andflexible and efficient so as to better deal with a rapidly changing

performs follow-up audits to ensure continuous improvements.

business environment and the expanding business domain.

The unit also consults with independent auditors and statutory

We employ a statutory auditor system under which

auditors in a timely manner to ensure sound management.

statutory auditors attend board meetings and the Management

We have selected Ernst & Young ShinNihon LLC as our

Committee sessions, interview relevant divisions and request

independent accounting auditor.

Corporate Governance Structure

Shareholders Meeting
Appoint/Dismiss

Independent Auditors

Appoint/Dismiss
Accounting Audit

Appoint/Dismiss
Audit

Board of Directors

Board of Statutory Auditors

16 Directors, including
4 from outside the Company

5 Statutory Auditors, including
3 from outside the Company
Appoint

Appoint/Supervise/Dismiss

Management Committee

President

Compliance Committee

ReportAccounting
Audit

Internal Audit Unit

Internal
Audit

Corporate Officers

Audit

11 Directors and Corporate Officers
17 Corporate Officers

DivisionsInternal Audit

Management

Subsidiaries

Internal Control System
The exposure of accounting fraud and other improper practices

10

We have established the Internal Control Promotion

committed by corporations has made it a pressing issue toCommittee, the task of which is to determine the scope andensure the reliability of corporate financial reporting. One suchprocesses subject to internal control assessment, and establish

measure is the internal control reporting system mandated byentity-wide controls, process-level controls and IT controls overthe Financial Instruments and Exchange Act in April 2008. The

financial reporting. At the end of fiscal 2009, we are scheduled

system requires the management of a corporation to assess theto assess the internal control system currently in place andeffectiveness of internal controls over its financial reporting andsubmit the findings along with a financial report to the financial

submit an internal control report on the findings.

authorities.

INPEX Corporation CSR Report 2009Compliance

We ensure that every employee maintains regulatory complianceand adheres to high standards of ethical conduct and businesspractices, so as to continue to earn the trust of society
Compliance Policy and System
In April 2006, immediately after the establishment of the former

to ensure that all employees understand that compliance is

INPEX Holdings Inc., we formed the Compliance Committee,

indispensable to securing the long-term continuity of thewhich is tasked with reviewing the Group’s basic policy and issues

company and is at the foundation of our business activities. Ourconcerning compliance, as well as monitoring and managing

employees are also expected to renew their commitment to

the implementation of compliance practices, so as to ensure

follow compliance practices.

consistency in compliance throughout the Group.
The Committee also works with statutory auditors, the Board

The new compliance manual discusses the Group’s Mission,
Corporate Social Responsibility Policy, an overview of theof Statutory Auditors, independent auditors and the Internal

Compliance Committee, the Code of Conduct, and examples

Audit Unit to: (1) develop and implement compliance programs;of compliance practices. A separate compliance FAQ document(2) monitor their implementation; (3) raise employees’ awarenessprovides a number of case studies.

of compliance policy and procedures; (4) receive reports on andWe have distributed copies of this manual to all of our officers

investigate cases of noncompliance; (5) issue warnings and takeand employees, and post revisions on a company bulletin board

measures to end any noncompliant conduct; and (6) establish

to keep them updated.

measures to prevent recurrence of noncompliant conduct.
The former INPEX CORPORATION and Teikoku Oil bothCompliance System

had compiled compliance manuals on important matters thatneeded to be addressed, such as the handling of company

Board of Directors

information and assets, fair trade practices, safe and secure

Director in Charge of Compliance(Committee Chairperson): Masatoshi Sugioka

workplace environment that values occupational safety and aCompliance Committee Members (Head of Business Divisions)high work ethic; and made the manuals available to all officers
and employees.

ReportAppoint

Compliance Committee

ReportUpon the merger of the two companies in October 2008,

External
Consultation(Lawyer)

we released a new compliance manual that incorporates theReportAnonymize

General Administration Unit
In-house
Department in Charge
Consultationof Compliance
ReportOfficers and Employees

best features of the manuals of both companies. This is intended

Help-Line System
We established the Help-Line System for our officers andare submitted to a department in charge of compliance (theemployees in April 2006, when the Whistle-blowers Protection

General Administration Unit) or an external expert designated

Act became effective.

by the Compliance Committee. When the latter receives a fraud

We have also devised our Help-Line Procedures to implement

report, it is shared with the former in a timely manner. Our officers

a fraud-reporting protocol that includes mandatory reporting ofand employees can report unethical behavior anonymously andfraud or unethical conduct, fact-finding procedures, protection

are rigorously protected against retaliatory action for filing suchof whistle-blowers, and confidentiality of reporting. Fraud reports

reports.

A Case of Noncompliance
In April 2008, a PC owned by one of our employees became infectedwith a virus and data on it was disclosed over the Internet through thefile-sharing software "Share." Most of the information was from internal
memos and no confidential information was disclosed. However, as afew documents related to our subcontractors were among the disclosed
information, we told the concerned parties what had happened, and tookurgent measures to prevent the spread of the disclosed information. After
this incident occurred, we reemphasized the importance of protecting the
integrity of information assets throughout the Group and implemented
a stricter procedure on allowing employees to take business information
outside the company to prevent a recurrence of accidental information
disclosure.

INPEX Corporation CSR Report 200911

Venezuela

Japan

UAE

Suriname

FeatureStory

Indonesia
Australia

Maintaining and Promoting
Sound Community Relations in
Oil- and Gas-producing Countries
It is critically important for an E&P company to maintain goodcommunity relations in resource-producing countries. We are engaged
in a wide range of programs and activities to build and maintain positive
community relations in the oil- and gas-producing countries in which we
operate. In this feature story, we outline what we accomplished throughfour types of activities in fiscal 2008.
WEB For more information, please visit our website.
http://www.inpex.co.jp/english/csr/

12

INPEX Corporation CSR Report 2009

1

Activity

Cultural Exchanges to Deepen Mutual
Understanding between Japan and Host Countries

We would like to help the young
people of Abu Dhabi learn more
about Japan
Nobuo Hara
Marketing Supply Manager
Abu Dhabi Regional Office
Japan Oil Development Co., Ltd.

While many people in Abu
Dhabi speak favorablyof Japan, it is important in the long run tocontinue to offer the country’s young people
opportunities, such as this tea ceremony, tolearn more about Japan and Japanese culture.
Graciously, the Crown Prince wishes that theart of tea will come to stay in Abu Dhabi, andthat more tea ceremonies will be held. In thiscontext, we need to know what exactly Abu
Dhabi is looking for and determine what we cando about it.

UAE

A Taste of the Japanese Art of Tea
Offered in Abu Dhabi
The Crown Prince of Abu Dhabi, Government
Officials and Students Invited to a Tea Ceremony

Australia

Co-sponsoredan Exhibitionof Art by an
Aboriginal
ArtistEmily Kngwarreye
Exhibition

We co-sponsored a retrospective on
Emily Kngwarreye, a leading Australian
Aboriginal abstract artist, in Tokyo andOsaka from February through July 2008.

In October 2008, we sponsored a traditional tea ceremony in Abu Dhabi hosted by
Urasenke—a prominent school of the Japanese art of tea—in honor of the Crown Princeof Abu Dhabi, who is known to have a favorable attitude toward Japan and Japaneseculture. During the event, the grand tea master of Urasenke prepared green tea for the
Crown Prince, and afterward the tea master spoke about the tradition, legacy and virtueof the art of tea to local college students. He demonstrated how to make green tea inthe traditional manner, giving the students an opportunity to have a taste of Japaneseculture. There has since been talk about building a traditional tea-room in Abu Dhabi andgiving students an opportunity to visit Urasenke in Japan to enhance cultural exchanges
between the two countries.

Hosted a Panel Discussion for ScholarshipStudents from Japan and Indonesia
Participated in Indonesia-Japan Expo 2008
When we participated in theIndonesia-Japan Expo 2008 held
in Indonesia in November 2008 tocommemorate the 50th anniversary offormal diplomatic relations between
the two countries, we hosted a panel
discussion among former scholarshipstudents from Japan and Indonesia.

UAE

Indonesia

Traditional Japanese Falconers andSwordsmiths Demonstrate their Arts
Participated in the Abu Dhabi International Hunting
and Equestrian Show

Japan Oil Development Co., Ltd, an INPEX Group Company, has been participating in
the annual Abu Dhabi International Hunting and Equestrian Show since 2004. On theshow floor, falconers and swordsmiths we invited from Japan gave a demonstration of
traditional skills to enthusiastic visitors.

INPEX Corporation CSR Report 200913

2

ActivitySocial and Economic Improvement Projects forCommunities

Venezuela

Assisting Communities
in Improving Living
Standards andDeveloping Industries
Helping to Build a WaterSupply System for Drinking
and Irrigation Water
Gas Guarico, S.A., a Venezuela-based natural gas
venture company 70% owned by the Company,
has been actively involved in projects designed
to improve living standards and develop
industries in that country. In 2007, Gas Guarico
agreed to provide municipalities with financial
assistance and become directly involved in a
project to build a water-supply system that
extends from a reservoir to the city, and which
will benefit the community. The project plan has
been approved by the regulatory authorities andthe community, and construction is scheduled
to begin in 2009.
We wish to raise living standards inthe community by improving theinfrastructure
Gabriel Rojas
Manager of Social Development Initiatives
Gas Guarico, S.A.

Gas Guarico, S.A. has participated in a
project to lay 16-inch water pipes fromthe El Pueblete reservoir to the village
of El Carlo La Negla. When the U.S.$1.1-million project iscompleted, the pipeline will supply water to 46,000 people
in 19 villages as well as to farms in neighboring areas. We
are excited that part of the construction work for which
the company is responsible will start in 2009. I am looking
forward to the day when the water supply will makethe farmlands in the area richer, and help people in thecommunity lead a better life.

Participating in the Emirates
Foundation and Proposing
Science and Technology
Programs

UAE

Working in the Emirates Foundation

UAE

Inviting Students from UAE
to Study in Japan
Hosting a Seminar for Students from
AbroadJapan Oil Development Co., Ltd. has been organizing an annual
seminar in Japan since 1993 for students majoring in geology
at UAE University and students of the Abu Dhabi Petroleum
Institute. The seminar offers classes not only in geology, butalso on topics that help students deepen their understandingof Japanese culture. Over the past 16 years, 102 students haveparticipated in the seminars.

14

INPEX Corporation CSR Report 2009

The government of the UAE established the Emirates Foundationin 2005 to raise funds and redistribute them to educational
programs for the youth of the country. Japan Oil Development
Co., Ltd. is a member of the Board of Trustees—the foundation’s
highest advisorybody—and has
been proposing
a variety of
programs inscience andtechnology
fields since 2008.

UAE

Co-Founded a College andSponsored an Engineering
Program
Providing Educational Assistanceto Local Students

Japan Oil Development Co., Ltd. is one of the founders of the
Abu Dhabi Petroleum Institute, which was established in 2000.
In January 2008 and January 2009, we offered a short-term
intensive program on remote-sensing technology that utilizes
Earth observation satellites.

Providing Financial
Assistance to Japanese andIndonesian Students througha Scholarship Program

Indonesia

Activity of the INPEX ScholarshipFoundation
The INPEX Scholarship Foundation, which we established in 1981,
offers scholarships for Indonesian university graduates with a degree
in natural science to take master courses at Japanese universities. It
also gives assistance to young Japanese researchers who wish to study
in Indonesia as part of cultural exchange programs between the twocountries.

Working with the United Nations
Development Programme in an
Environmental Preservation Initiative
Environmental Preservation Program for the
Mahakam Delta

Indonesia

We have been engaged in a five-year project since 2007 to restore andpreserve the mangrove forests in the Mahakam Delta in Indonesia,
which have been seriously damaged by the encroachment of
shrimp ponds around them. The project is also intended to assist
the local community in achieving sustainable economic and social
development.

INPEX Corporation CSR Report 200915

3

ActivityJapan

Community Relations Programs

Worked witha Community
Volunteer Group in
an Environmental
Preservation Program
Participated in the KashiwazakiKariwa Tree-Planting Ceremony

Our employees participated in the Kashiwazaki-Kariwa TreePlanting Ceremony in June 2008, organized by the Network
for Preserving Environment inSatoyama (domestic woodland),a regional volunteer group in
Kashiwazaki. In this event, theyplanted oaks and beeches, andtrimmed underbrush.

Australia

Volunteered Assistancein a Community Event
Participated in the
Kashiwazaki Shiokaze
MarathonJapan

In May 2008, our employees participated in the Kashiwazaki
Shiokaze (sea breeze) Marathon, which was organized by the
local community in Kashiwazaki, Niigata Prefecture. They also
volunteered assistance for the event.

Participated in a Community
Event in Darwin, Australia
Co-sponsored Fred’s Pass ShowIn May 2009, we co-sponsored the annual Fred’s Pass Show in
Darwin, Northern Territory, Australia, where we plan to build an
LNG plant. This event was organized by a regional organization
to raise people’s awareness of local industries. We had a boothat the show, where we gave balloons to children. We also held
dialogues with local residents who visited our booth, and raised
their understanding of our project.

Japan

Hosting Tours of Our Facilities
for Junior-High and High-SchoolStudents
Facility Tours

Teiseki Transport System Co., Ltd. and Teiseki Topping Plant Co., Ltd.—both INPEXGroup companies doing business primarily in Niigata Prefecture—host tours of theirfacilities for students from local schools on social studies programs. In fiscal 2008, the twocompanies hosted four tours fora total of 141 students, in which
they learned about the basicsof the E&P business, including
the history of oil and natural gas
production in Niigata Prefecture.
We will continue to host suchtours so as to maintain good
relations with local communities.

16

INPEX Corporation CSR Report 2009

We hope to give children an
opportunity to understand theimportance of natural resources
Takao Yoshida
Managing Director
Teiseki Transportation System
Co., Ltd.

During the tour, I briefed
students on the basics of the
E&P business, including what oil and natural gas
are made of, how to find and extract them fromunderground, based on my own experience atoil wells. I hope that the children, who will growto be tomorrow’s leaders, had an opportunity tounderstand the importance of making better useof our limited natural resources.

4

Activity

Keeping Stakeholders Informed of our Business

Delivered a Message of Harmonious
Coexistence to the People of Darwin

Australia

Participated in an Annual APPEA Plenary Meeting
We had a booth at an annual plenary meeting of the Australian Petroleum Production &Exploration Association (APPEA), held in Darwin, Northern Territory, Australia, in May andJune 2009. As Darwin is a planned construction site for an LNG plant as part of the Ichthys
Project, we chose energy, job opportunities, and community as the main themes of ourmessage and stressed how the Ichthys Project would contribute to the local economy andhow we would maintain harmonious relations with the community. In addition, we invited
local high-school students to a workshop in which we talked about the E&P industry andjob opportunities that the project would create.

We realized the importance of
having good relations with local
stakeholders
Keisuke Yano
Public Relations Group,
Corporate Communications Unit

As the APPEA plenary session
was held in a city where weplan to build a plant as part of the Ichthys Project,
we witnessed firsthand how strong an interest
local residents had in the project. We found they
had mixed feelings about it. On one hand, they
were positive about the investments and the job
opportunities the project would bring; on theother, they were concerned about the potential
impact the project would have on their social
environment. We realized the importance ofdeveloping and maintaining good relations withlocal residents and businesses to make this largescale project a success.

Suriname

Winning the Support of Local Residents
for Our Pro-Environment and ProCommunity Efforts
Held a Stakeholders Meeting

Before we began conducting oil exploration in the Republic of Suriname in South America,
we carried out an environmental impact assessment and devised programs for monitoring
marine life and for ensuring the safety of fishing boats in the area. In December 2008, we
briefed the environmental authorities and fishermen on the project and these programs,
and won their support.

INPEX Corporation CSR Report 200917

Fulfilling Commitments with
Diverse Stakeholders
The INPEX Group carries out E&P operations to develop energy resources in many parts of the world. It is the
responsibility of an E&P company such as ourselves to provide a stable supply of energy, while addressing
the needs and concerns of its diverse stakeholders—customers, shareholders, investors, residents inresource-rich regions, suppliers and employees. It is also necessary to ensure that operations are conductedsafely and are not harmful to the natural environment. With this in mind, we maintain a closer dialogue with
our stakeholders for the sake of smooth business operations. In addition, we have been implementing abroad range of initiatives under our own HSE Management System, which encompasses pro-environmental
efforts as well as occupational health and safety activities.

Suppliers

Contractors

Fair Trade

Community
SupportInformation
Disclosure

H

Human
Resources
Management

Oil- and
Gas-Producing
Countries

HealthShareholders
and Investors

S
SafetyE
Environment

Employees

Improvementof Supply
System andCustomer
Service

Product
SafetyDonationandSponsorship

Local
Communities
and NGOs

Customers

Environmental performance data collected in our Operational Organizations outside Japan
Pursuant to the Management Procedure for HSE Data we have established, our Operational Organizations 1 have been collecting environmental performancedata since fiscal 2008. As overseas Operational Organizations have begun to do so fairly recently, the data they collected was found to be not as complete andaccurate as those collected by domestic Operational Organizations, which have more experience in compiling data. Therefore, we have been working todevelop detailed guidelines for Operational Organizations on how to collect complete and accurate environmental performance data.
1 Operational Organization: Business unit responsible for carrying out a project

18

INPEX Corporation CSR Report 2009

Health, Safety andEnvironment

A Message from the Representative Director in chargeof HSEHSE

HSE

The INPEX Group gives top priority to implementing a series of
HSE initiatives in a concerted effort to fulfill its mission
the first full year in which we acted on the HSE Management
System, under which group-wide goals and programs weredeveloped at the corporate level and action items were plannedand executed in each Operational Organization. In the review

Masatoshi Sugioka

and assessment phase, we performed corporate-level HSE audits

Representative Director
in charge of HSE

on four Operational Organizations inside and outside Japan; thefindings of these audits as well as HSE performance results of all

The INPEX Group strives to become an integrated E&P company

Operational Organizations were reported to the Corporate HSE

committed to contributing to the development of society—aCommittee for review and assessment.

good corporate citizen that upholds high business ethics andWhile enhancing our HSE performance, a tragic incident

places ensuring safety and environmental integrity at the top of

occurred in July 2008, which killed two employees of one of ourits corporate agenda. We are also committed to following rules

contractors2 at a tunnel construction site—part of our natural gas

and standards prevailing in the international community whenpipeline construction project in Japan. Taking this tragic accident

conducting our business on a global basis to secure and provide

seriously, we reviewed and upgraded our HSE Management

a stable supply of energy for our customers.

System employed by our contractors. We will continue to

In December 2007, we developed the HSE Management
System Manual to carry out health, safety and environmental
activities in a unified manner under internationally recognized
standards.

work closely with them to prevent recurrences of work-related
incidents.
We believe that we have in place a good basis for
implementing group-wide HSE initiatives. The next step is to

Our HSE Management System is designed to ensure

ensure that ongoing HSE activities we perform on this basis arecontinuous improvement based on the PDCA1 management

relevant and effective throughout the Group so as to retain thecycle that ranges from setting goals for a fiscal year to devising

trust and respect of the society we serve.

and implementing plans for achieving them to reviewing and

1 PDCA: Plan-Do-Check-Act

assessing performance for ongoing improvement. 2008 was

2 Contractor: A company that does work or provides goods or services for anothercompany, such as in a construction project

Health, Safety and Environment Policy of the INPEX GroupINPEX Group is a global, independent energy company
and our vision is to provide a stable and efficient supply ofenergy to our customers.
We recognize our responsibility for sustainable
To accomplish this, we will:•Comply with all applicable HSE laws and regulations, and apply
our standards where laws and regulations do not exist or are
considered insufficient.

•Implement and maintain HSE management systems, andperform regular audits of legal compliance and progress of our
HSE activities to achieve continuous improvement in our HSE
performance.

•Identify and assess health and safety hazards and eliminate or, if
not possible, reduce risks to as low as reasonably practicable toprevent incidents.

development and, in this regard, we aim to protect
the health and safety of all those associated with ourbusiness activities and to minimize adverse impacts on theenvironment.

•Maintain and regularly test emergency plans to ensure a quick
and effective response in the event of emergencies.
•Provide resources that will enable our employees to meet HSE
objectives and targets.
•Provide training in HSE activities and safe driving to ensure all

employees are aware of their responsibilities and accountabilities
in these areas.

•Require contractors to manage HSE in accordance with thisPolicy, and to achieve agreed HSE targets.
•Communicate openly on HSE activities with stakeholders.

•Conduct environmental assessments and promote efficientenergy consumption to reduce adverse environmental impacts.

INPEX Corporation CSR Report 200919

Health, Safety andEnvironment

HSE

HSE Management System

HSE

We conduct health, safety and environmental practices under aunified HSE Management System
Overview of HSE Management System
A stable supply of energy can be disrupted for any number of(H), safety (S) and environmental (E) practices.

reasons. Incidents and disasters at a project site, for instance,

The HSE Management System encompasses a document

could not only pose the threat of a major disruption to thearchitecture that includes the HSE Policy, the HSE Management

energy supply, but also cause environmental pollution,

System Manual, and sets of Corporate HSE Procedures andjeopardizing our ability to continue business. In light of this, we

Guidelines; an organizational structure that comprises HSE

consider the preservation of environmental integrity and theCommittees established at headquarters and in Operational

prevention of such incidents to be inseparable from each other.

Organizations; and HSE Objectives and action plans for HSE

Therefore, we continuously enhance our HSE performance under

Programs devised for each fiscal year.

our own HSE Management System, which coordinates our health

Promoting and Implementing the HSE Management System
When the new INPEX CORPORATION became operational in

The HSE Managers Meeting2 and the Annual HSE Meeting3

October 2008, the HSE Unit was established at headquarters,

were held in February and March 2009, respectively. At bothand HSE groups were installed as needed in Operational

meetings, senior management from headquarters and theOrganizations in charge of operator1 projects.

Operational Organization Representatives met to develop a

To promote systematic group-wide HSE initiatives, we also

greater awareness and knowledge of HSE management, andestablished the Corporate HSE Committee, which is tasked withto ensure that HSE Objectives for fiscal 2009 were understoodformulating the Group’s HSE Management System Manual,in all Operational Organizations. At the Annual HSE Meeting,Corporate HSE Procedures and HSE Objectives. In fiscal 2008, therepresentatives of Operational Organizations in Japan, Australia,

Committee held 10 sessions in which it reviewed and approved

Egypt, Indonesia, Suriname and Venezuela met to give progress

18 sets of Corporate HSE Procedures.

reports on HSE Programs and HSE systems in their respective

Under our HSE Management System, a business unit

regions as well as to determine courses of action to deal within charge of an operator project is called an Operational

company-wide problems and issues.

Organization. Each Operational Organization is responsible for

1 Operator: a company that takes primary responsibility for operations for exploration,
development and production in a block.

conducting HSE activities at its operational sites, and has its own

2 HSE Managers Meeting: A meeting attended by managers of Operational
Organizations.

HSE Committee, which is tasked with ensuring that a project is

3 HSE Meeting: A meeting attended by Operational Organization Representatives.

carried out in accordance with our HSE Policy.
Diagram of Framework for Implementing HSE Management System

Corporate
Naoki Kuroda(President)

20

Corporate HSE Committee
Masatoshi Sugioka(Representative Director [in charge of HSE])

Operational Organization

Operational Organization

Operational Organization

Operational Organization

Operational
Organization
Representative

Operational
Organization
Representative

Operational
Organization
Representative

Operational
Organization
Representative

HSE Committee

HSE Committee

HSE Committee

HSE Committee

INPEX Corporation CSR Report 2009

Document Architecture for HSE Management System
The mission and binding principle described in our Group

Document Architecture for HSE Management System

Mission and Corporate Social Responsibility Policy encompass

Group Mission

a broad range of aspects. With regard to health, safety andenvironment practices, in particular, we have the HSE Policy,
the administrative framework of which is detailed in the HSE
Management System Manual and sets of Corporate HSE
Procedures to ensure their systematic implementation. Each

Corporate Social Responsibility Policy
Document
Architecture for
HSEMS

HSE Policy

Corporate HSE Management
System Manual
Procedures
Corporate HSE
Guidelines

Operational Organization develops its own HSE manuals andaction plans based on these Corporate-level documents. The

Corporate HSEMS
documents

HSE plans
Operational
Related documents such as
Organization’s HSEMS
Procedures and work Instructions
documents
Bridging documents for contractors
Documents for contractors’ HSE managementadministrative framework defined in these documents enables
headquarters and Operational Organizations to take concerted
action in HSE efforts.

HSE Auditing
During and prior to fiscal 2007, each Operational Organization

the Domestic Project Division and three overseas Operational

followed its own procedure for conducting an HSE audit. In

Organizations.

fiscal 2008, we established the Corporate HSE Procedure for

In addition to a corporate-level HSE audit, each Operational

HSE Audit at the corporate level, which every Operational

Organization and operational site is responsible for conducting its

Organization is required to follow when it conducts an HSE

own HSE audit.

audit. The standardized procedure requires each Operational
Organization to receive a corporate-level HSE audit once every
two years. In fiscal 2008, such HSE audits were conducted in theDomestic Project Division, the Pipeline Construction Division,
the Venezuela Project Site and the Egypt Project Site. Corporate
audit teams assessed the HSE performance of these organizations
and determined if it met each evaluation criterion, and offeredcomments on each item, even on those which scored high.
Audited organizations then developed and implemented plansfor corrective and preventive measures for items judged to beeither substandard or potential risks.
In fiscal 2009, corporate-level HSE audits are scheduled in

HSE audit conducted at Venezuela Project Site

HSE Training
Based on the HSE Policy, we made it one of our HSE Objectives

Seventy-two employees participated in e-learning courses onfor fiscal 2008 to raise employees’ awareness of HSE. We devised

HSE, and several regional Operational Organizations requested for

HSE training programs under the Corporate HSE Procedures

HSE seminars—an indication of employees’ growing interest in

for Competence and Training to provide a training framework

HSE training programs.

for global Operational Organizations when carrying out site-

In fiscal 2009, we plan to offer upgraded training programs

specific training programs for operational safety, environmental

to employees by adding most frequently requested items to the

management and emergency response.

curriculum based on employee feedback. We are also scheduled

Corporate-sponsored HSE training programs covered 27

to conduct an HSE awareness survey to gauge employees’

subject matters in fiscal 2008, including seminars given byawareness level of HSE. The result of the survey will be used to

speakers from inside and outside the Company and external

improve the HSE training programs and enhance employees’

emergency drills, which were attended by 464 employees.

awareness of HSE.

INPEX Corporation CSR Report 200921

Health, Safety andEnvironment

HSE

Corporate HSE Objectives

HSE

We develop our Corporate HSE Objectives and Programs each year
against which performance is reviewed for continuous improvement
Corporate HSE Objectives and Programs for the year from April 1, 2008 to March 31, 2009
Corporate HSE Objectives

HSE Programs and Targets

Description

Frequency andProgram Period

Report to the Board of Directors and Management Committeeon HSE activities on a regular basis

Once a month

Report to the Board of Directors and Management
Committee on results and analyses of environmental, health andsafety activities on a regular basis

Once every
six months

Top management to visit operational sites

The Representative Director and the Director for HSE to visit
operational sites

Twice a year perpersonEstablish and implement HSE Award System

Establish the HSE Award System and present awards at theAnnual HSE Meeting

Once a year
(between April and
September)

Conduct HSE training

Provide HSE training for line managers and staffers

From April to July
2008

Produce Corporate HSEMS documents

Review and approve documents under the Corporate HSE
Management System in the Corporate HSE Committee

Throughout the year

Conduct HSE audits

Conduct HSE audits of the Corporate and Operational
Organizations

Once a year

Hold HSE Managers Meeting and Annual HSE Meeting

Hold an HSE Managers Meeting and an Annual HSE Meetingon a regular basis

Once a year

Collect and analyze environmental data

Establish an administrative database and hold briefing sessions
on environmental data management

April and May 2008

Evaluate Operational Organizations’ achievement ofenvironmental performance indicators against numericaltargets

Report on evaluation results of Operational Organizations’achievement of environmental performance indicators at
Corporate HSE Committee meetings on a regular basis

Once every
six months

Establish system to manage health and safety data

Establish administrative database and hold briefing sessions on
safety and health data management

April and May 2008

Evaluate Operational Organizations’ achievement of healthand safety performance indicators against numerical targets

Report on evaluation results of Operational Organizations’achievement of safety and health performance indicators at
Corporate HSE Committee meetings on a regular basis

Once every
six months

Assist Operational Organizations in their efforts to reduce
human errors

Conduct training on human error prevention

From July to
September 2008

Assist Operational Organizations in their efforts to prevent
traffic accidents

Conduct training on traffic safety

Throughout the year

Assist Operational Organizations in their health management
activities

Conduct training on mental health

From October toDecember 2008

Update management on HSE activities

Raise HSE awarenessEstablish HSEManagement System

Reduce environmental
impactImprove health andsafety performance

Capital Expenditures for Environmental Control Projects and their Returns for the Fiscal Year Ended March 31, 2009
Objectives

Description

Upgrade heating furnaces to improve heat efficiency
Curb global warming and to save energy

Install a residual gas collection line from idle wells
Upgrade strippers for burning methane contained in natural gas to curb emissions of methane directly into theatmosphere
Install internal floating roofs to oil tanks to curb emission of benzene

Curb emissions of benzene and VOCs
Upgrade filling stations for tanker trucks to curb emission of VOCs
Remove impurities from natural gas

Replace adsorption agent used in purifiers that remove impurities from natural gas for sale

Other

Reduce industrial waste and waste water, maintain water quality, curb NOx-emissions, control noise, and carry out
greening projects for plant sites

During fiscal 2008, we spent ¥557 million in capital expenditures for environmental control at facilities in Japan. These investments resulted in a reduction of emissions
amounting to 8,300 tons of GHGs, 107 tons of VOCs, and 3.9 tons of benzene.

22

INPEX Corporation CSR Report 2009

We set four Corporate HSE Objectives for fiscal 2008: to raise HSE awareness; to establish the HSE Management System; to reduce
environmental impact; and to improve health and safety performance. To achieve these objectives, the Corporate and each Operational
Organization developed and implemented action programs for the year.

Rating:: Implemented as planned in fiscal 2008

Result: Partially implemented in fiscal 2008, to be continued in fiscal 2009

Rating: Not implemented in fiscal 2008, to be carried over to fiscal 2009

Performance Evaluation and Issues to be Resolved

Implemented as planned

Implemented as planned

Implemented
The system was in place, but the award
presentation was carried over to fiscal 2009.

Although the HSE Award presentation was carried over to fiscal 2009, we began making more frequent and detailed
reports on HSE activities. While we heard many comments made at the HSE Managers Meeting about employee’s greaterawareness of HSE, we still have a long way to go toward establishing a corporate culture that highly values HSE among
employees.
We will continue to carry out these programs to raise employees’ awareness of HSE in fiscal 2009, and will conduct aquestionnaire survey of employees’ HSE awareness and analyze results. We also plan to establish an HSE information
sharing system among Operational Organizations.

18 training programs were completed out of the
27 planned for 5 months.
12 Corporate HSE Procedures out of the planned
13 were produced, reviewed and approved. (92%completion rate)
4 Operational Organizations out of the planned
5 received audits, and their results were reported
to the Management Committee
Implemented as planned

We worked to establish the HSE Management System, which involved producing documents, conducting HSE audits,
and improving training based on the 2008 HSE Programs. To be more specific, we completed preparing 12 out of
13 Corporate HSE Procedures; conducted HSE audits of 4 Operational Organizations and reported their results to
the Management Committee; and provided a total of 155 hours of HSE training in addition to introducing e-leaning
programs.
In fiscal 2009, we plan to devise a mid-term plan for establishing the HSE Management System, as well as to draw up HSE
Guidelines to put HSE Corporate Procedures in practice, to continue to provide employees with training to enhance their
HSE competence, and to add HSE staff.

We began developing databases that will enable us to manage environmental and safety data in a unified manner. In
Japan, the data-collection system became fully operational and each Operational Organization began to set its own
environmental targets and to work toward achieving them. In project sites outside Japan, however, data collection was
found not to be sufficient or accurate enough.
In fiscal 2010, we plan to develop the data collection and analysis system as part of an attempt to set mid- to long-term
numerical targets on the Corporate level, and also plan to provide Operational Organizations with technical assistance intheir environmental activities.

Implemented as planned

Implemented as planned

Implemented as planned

Implemented as planned
Not implemented. To be carried over to fiscal
2009.
Not implemented. To be carried over to fiscal
2009.

We began collecting and analyzing safety and health data in conjunction with establishing the required database.
However, we fell short of establishing numerical targets, unlike the case with environmental data. We did not implement
sufficient countermeasures against human errors in fiscal 2008.
In fiscal 2009, we plan to develop and begin to use a safety and health information collection and analysis system; toassess numerical targets; to develop countermeasures against human errors based on human factor engineering; and toenhance health management measures including those against 2009 H1N1 Flu.

Implemented as planned

Location/Facility

Investment Amount(Thousand yen)

TTP1

Kubiki Refinery

72,500

Nagaoka

Koshijihara Plant

5,170

Kashiwazaki

Hirai Gas Recovery Facility

300

TTP1

Kubiki Refinery

Sub-total(Thousand yen)Amount of Emissions Reduced
GHG (tons-CO2)

VOC (tons)

Benzene (kilograms)

84

180

1,600
77,9706,700

35,4002,700
413,400

Nagaoka

Koshijihara/Oyazawa Plant

378,000

23

Nagaoka

Koshijihara Plant TR-C

11,08011,08054,06554,065

Total

556,515

1,050

1 Teiseki Topping Plant Co., Ltd.

INPEX Corporation CSR Report 200923

Environmental Impact Resulting from our Business
Activities in 2008

Environment

Environment

The INPEX Group monitors how business activities in eachprocess impact the natural environment as a basis for its efforts to
reduce adverse environmental impacts
I N P U T
2007

2008

Fuel

1,087TJ

726TJ

Water

508,777KL

121,076KL

Purchased gas

00Purchased
raw materials

28,814BBL

0

2007

2008

Fuel

2,670TJ

2,645TJ

Water

977,505KL

898,631KL

Purchased gas 2,351,160k SCF 2,183,220k SCF
Purchased
raw materials

0

2007
Fuel

0

2008

313TJ

303TJ

331,132KL

228,536KL

Purchased gas

00Purchased
raw materials

242,165BBL

144,670BBL

2007

2008

Water

Exploration
andDevelopment

We search for underground structures that may containoil and natural gas, and drill exploratory wells in promisinglocations. If the existence of sufficient reserves isconfirmed, we develop oil and natural gas fields by drilling
production wells, constructing production facilities, andlaying pipelines.

•Inpex CORPORATION •INPEX Browse, Ltd. •INPEX Masela, Ltd.
•INPEX Libya, Ltd. •Teikoku Oil Libya U.K. Ltd.

Production
and Power
Generation

When crude oil and natural gas are extracted fromunderground at our oil and gas fields, impurities such as
moisture and carbon dioxide are removed from themto make them ready for transportation by tanker trucks
or pipelines. Electricity is generated at a power plant
powered by natural gas and condensate—hydrocarbon
liquids.

•Inpex CORPORATION •Offshore Iwaki Petroleum Co., Ltd.
•Gas Guarico, S.A. •West Bakr Petroleum Co.

Crude oil is transported to a refinery, where it is refined
Refining andpetroleum products such as gasoline and fuel oil
Transportation into
for sale. Natural gas is transported directly from plants tocustomers via pipelines. The Naruto Gas Field in Chiba
Prefecture processes and sells iodine—a byproduct ofnatural gas.

•Teiseki Topping Plant Co., Ltd. •Teiseki Pipeline Co., Ltd.

TOTAL
Fuel
Water

4,070TJ

3,674TJ

1,817,414KL

1,248,243KL

Purchased gas 2,351,160k SCF 2,183,220k SCF
Purchased
raw materials

270,979BBL

Environmental Impact Resulting from our Business Activities in 2008
We were successful in reducing the amount of adverse environmental impact, such as
the emission of GHGs, VOCs and PRTR-controlled substances in our business activities
in 2008. This was achieved as a result of our increased efforts to burn vented naturalgas, recover or burn VOCs contained in exhaust emissions, install VOC-recovery

144,670BBL

Consumption Petroleum products and natural gas are sold to and utilizedby factories, gas stations, power plants, utility gas companies,
hospitals, offices and homes.
The electricity we generate is wholesaled to PPSs1.
1 PPS: Power Producer and Supplier. A non-utility private company that sells
electricity.

24

INPEX Corporation CSR Report 2009

O U T P U T
2007
GHGs

Seismic survey

Exploratory well2008

84,274 ton 57,032 ton

PRTR substances3

0

1 ton

VOC

—

39 tonNOx—

455 tonSOx—

127 tonWastewater discharged 20,475KL
into public water bodies

330KL

Disposed waste

41,062 ton 31,922 ton

GHGs

500,002 ton 391,045ton

2007
PRTR substances3

The Koshijihara Power Plant

Pumping units at the Yabase Oil Field

Gas-processing facility at the
Koshijihara Plant

23 ton

14 tonVOC—

511 tonNOx—

42 tonSOx—

109 tonWastewater discharged 140,757KL 798,768KL
into public water bodies
Disposed waste

GHGs
PRTR substances3

Naoetsu Oil Terminal

Natural gas pipeline operated by Teiseki Pipeline

2008

2,219 ton

4,738 ton

2007

2008

26,324 ton 25,140 ton
14 ton

10 tonVOC—

360 tonNOx—

53 tonSOx—

75 tonWastewater discharged 488,471KL 367,456KL
into public water bodies
Disposed waste

557 ton

320 ton

2007

2008

TOTAL
GHGs

devices at filling stations for tank trucks, and add internal floating roofs to oil tanks—
all of which were in our action plan for 2008.
We will redouble our efforts in these areas, and even consider taking additional
measures to mitigate the environmental impact of our activities.

PRTR substances3

610,601ton 473,216 ton
37 ton

25 tonVOC—

911 tonNOx—

549 tonSOx—

311 tonWastewater discharged 649,703KL 1,166,554KL
into public water bodies
Disposed waste

43,838 ton 36,980 ton

2 The INPUT and OUTPUT data for 2008 shown on this page
constitute the sum of all the HSE data collected from ourdomestic and overseas operations.

Sales
2007

Natural gas cogeneration system

2008

Natural gas
87,865,306k SCF 88,790,607k SCF
Crude oil (amount sold)2,299,778BBL
2,307,887BBL
Petroleum products
1,402,125BBL
1,421,784BBL
LPG
56,281BBL
62,653BBL
Iodine490ton496tonElectricity
105,736,400kWh 108,853,000kWh

3 PRTR substance data in OUTPUT came from our domestic
operations only.
4 Numbers in tables are rounded off to the nearest whole
number.

INPEX Corporation CSR Report 200925

Environment

Preventive Measures against Global Warming

Environment

Cutting greenhouse gas emissions while increasing production ofnatural gas to meet rising demand
Reducing CO2 Emissions Based on Assessments of GHG-Emission Status
In fiscal 2008, we started collecting environmental data in

the Kubiki Refinery; 1,600 tons by switching fuel to natural gas at

Operational Organizations and setting annual environmental

the Koshijihara Power Plant; and 5,900 tons by shutting down thegoals to be achieved by each Operational Organization. The

Offshore Iwaki Field and through efforts made at all field offices.

Domestic Project Division established numerical goals for fiscal

We also achieved the fiscal 2008 goal of reducing GHG

2008, which were to bring GHG1 emissions below the previous

emissions per unit of production2 to below the 2007 level; per-year’s level and to develop measures to prevent dispersion-unit emissions due to energy use were down by 0.138 kg/GJ to

induced emissions of GHG on an ongoing basis.

1.387 kg/GJ from a year earlier; and those caused by natural gas

The result was that the Domestic Project Division reduced

emissions were down by 0.224 kg/GJ to 0.302 kg/GJ.

earlier. The breakdown of the reduction is as follows: 6,700 tons

1 GHG: Greenhouse gas. A gas that traps heat in the atmosphere, including CO2,methane, nitrous oxide and chlorofluorocarbon. The Group emits CO2 throughenergy use, and CO2 and methane associated with its operations.

by burning dispersed natural gas; 1,600 tons by saving energy at

2 Per unit of production: GHG emissions divided by oil and natural gas production
volume.

Total GHG Emissions by Sources(Domestic Operational Organizations only)

GHG Emissions per Unit of Production(Domestic Operational Organizations only)

total CO2 emissions by 23,000 tons to 411, 900 tons from a year

Energy use

CO2 removal

Natural gas emissions

Energy use

Generation of electricity(1,000 of tons of CO2)

(kg-CO2/Nm3)

500

6

64
41

400
300
200
100
0

36
29
69
70
2000

43
74
59
2001

59

45
76

82
67

73
2002

2003

26
92
73
2004

29
104

137

83

99

2005

2006

62
25

210

212

120

113

4

2

2007

2008 (Year)0

CO2 removal

0.794
1.858

1.120

1.897

1.523

1.924

2000

2001

Natural gas emissions

Generation of electricity

0.604

0.608 0.625

0.809
0.761
0.525
0.302
2.664 2.603

1.166

1.450

1.971

1.997

2.108

2.214

2.411

1.895

1.634

1.667

1.776

1.731

1.526 1.387

2002

2003

2004

2005

2006

2007

2008 (Year)

Nippon Keidanren Voluntary Action Plan on the Environment
We participate in the Nippon Keidanren Voluntary Action Plan

both to damage caused to facilities by the Niigataken Chuetsu-

on the Environment through the Japan Petroleum Development

oki Earthquake, and the increased production volume of natural

Association (JPDA). The JPDA has set a target of reducing thegas. With the restoration of damaged facilities, installation of

average GHG emissions per unit of production at oil and natural

additional emission-reducing equipment, and streamlining ofgas development facilities in Japan from 2008 through 2012

facilities completed, we are expected to meet the goal set in theby 20% below the 1990 level. Our GHG emissions per unit ofvoluntary action plan of bringing GHG emissions 20% below the

production increased in fiscal 2007 from the previous year due

1990 level.

Cargo Transportation Reporting
Under the provisions of Japan’s amended Energy Conservation

We transport around 90% of our produced oil and naturalLaw, enacted in April 2006, consigners of cargoes transported

gas by sea. Of the remaining 10%, that transported long distancein volumes exceeding 30 million ton-kilometers per year are

overland, increased sharply in fiscal 2007, necessitating us toobligated to report the volume of their transported cargoes,develop a more meticulous management plan. For this reason,

to develop energy conservation plans, and to report quantities

we set up a working group tasked with developing a policyof consumed energy. As we are designated as a specified

on controlling company-wide transportation and submitting aconsigner1 of cargoes transported in volumes exceeding 200

proposal to the Corporate HSE Committee.

million ton-kilometers, we have been measuring and reporting

1 A consigner of cargoes transported in volumes exceeding 30 million ton-kilometers
per year is designated as a specified consigner.

quantities of consumed energy since fiscal 2006.

26

INPEX Corporation CSR Report 2009

Reducing GHG Emissions in Oil and Natural Gas Business
CO2 Emissions from Energy Use
At our oil- and natural gas-processing plants and field offices,

reduce CO2 emission. In fiscal 2008, increased thermal efficiency

we rely as much as possible on natural gas we produce, which

was achieved at oil refineries of one of our Group companies

generates less CO2 than coal or oil when burned, for our energy

through the modification of its heating furnace, which resulted inneeds. In addition, greater use of energy-saving systems powereda reduction of 1,600 tons of CO2 emissions.

by natural gas and improved energy efficiency have helped us

CO2 Removal during Natural Gas Processing
At the Minami Nagaoka Gas Field in Nagaoka, Niigata Prefecture,

has been studying the commercial feasibility of a method

our major gas production base in Japan, CO2 that makes up

called carbon capture and storage (CCS), by which separated

approximately 6% of natural gas is separated and removed by

CO2 is injected into a deep underground aquifer or a depleted

a process using an amine solution and then dispersed into theoil or natural gas field, and another method called enhanced

atmosphere.

oil-recovery (EOR), by which CO2 is injected into an oil field to

While no effective methods are currently available for

improve crude oil recovery.

processing the separated CO2, the oil and natural gas industry

Reducing Unwanted Natural Gas Emissions during Operations
In the oil and natural gas business, it is inevitable to temporarily

as possible, such as by lowering pressure in pipelines prior todischarge a small amount of natural gas into the air whenrelocating them, burning dispersed natural gas into CO2, andrelocating pipelines or when conducting routine inspections ofrecovering as much dispersed natural gas as possible. As a result,equipment. As the greenhouse effect of methane—the principal

we managed to reduce CO2 emissions by more than 17,000 tons

component of natural gas—is 21 times greater than that ofin fiscal 2008 from a year earlier.

CO2, we do everything we can to disperse as little natural gas

Stable Supply of Natural Gas with Low Environmental Load
The Domestic Project Division of the Group, which pioneered E&P
operations for oil and natural gas in Japan, has been engaged indeveloping and supplying high-quality, domestically produced

Amount of CO2 Generated by Fossil Fuels when Burned(with that of coal being 100)
Fuels
Coal

100.0

sources of energy. Natural gas—our primary product in theJapanese market—is known for generating less CO2, a primary
GHG, when burned than the other fossil fuels such as oil and coalClass-B and -C heavy oil

78.9Class-A heavy oil

76.5

Crude oil

75.7

Light diesel oil

75.7

Kerosene

74.9

Gasoline

74.1

and is therefore environmentally friendly. It is considered a cleansource of energy as it generates little NOx and SOx when burned,
which can cause air pollution and acid rain, and it contains almost
no volatile organic compounds (VOCs) in it, which can cause
photochemical smog and suspended particle matters.
The Domestic Project Division has taken it upon itself toprovide a stable and efficient supply of energy for society and has

Liquefied petroleum gas

66.0

been building a pipeline network in Japan for more than 40 years.
This well-developed pipeline network enables us to transport

Natural gas(LNG not included)

56.3

environmentally friendly natural gas to our customers safely and

Liquefied natural gas
(LNG)

54.7

securely by means with a low environmental impact.

0.0

20.0

40.0

60.0

80.0

100.0

Note: This chart derives numbers from the “List of Methods of Calculation and Emission
Coefficients Used for Calculation, Reporting and Disclosure Systems” published by
the Ministry of the Environment

INPEX Corporation CSR Report 200927

Studying the Commercial Feasibility of Carbon Capture and Storage Technology
Feasibility Studies of CCS Underway around the World
Under growing pressure to reduce emissions of CO2 that canlevel on a global basis by 2050. To achieve this goal, the Ministrycause global warming, researchers around the world have beenof Economy, Trade and Industry (METI) unveiled the “Coolworking on carbon dioxide capture and storage (CCS) technology

Earth—Innovative Energy Technology Program” in March 2008, in

to capture CO2 emitted from major sources such as thermal

which CCS was listed among 21 innovative energy technologies.

power plants, and to inject it into a deep underground aquifer

Furthermore, the declaration by leaders announced at theor the ocean. In 2006, the Intergovernmental Panel on Climate

G8 Hokkaido Toyako Summit Meeting in July 2008 referred to

Change (IPCC) endorsed this technology as an effective means to

the importance of accelerating the commercialization of CCS.

reduce CO2.

Immediately after this, the Japanese cabinet approved the Action

Commercial CCS projects are already underway in Algeria,

Plan to Build a Low-Carbon Society, which includes a plan to start

Canada and Norway, capturing and storing CO2 in the range

large-scale testing of the CCS technology in fiscal 2009 or laterof 1 million tons per year. The EU has proposed an initiativewith the goal of deploying CCS on a commercial basis by 2020.

to financially support the building of 12 CCS pilot plants in

We have been working with the Research Institute of

the region by 2015. Australia has established the Global CCS

Innovative Technology for the Earth (RITE) since 2003 to test theInitiatives (GCCSI, see article on the following page, “A Founding

CCS technology at our Iwanohara Site located in the Minami

Member of the Global CCS Initiatives”) to accelerate research into

Nagaoka Gas Field in Nagaoka, Niigata Prefecture. We also

CCS on a global basis, and we are one of the founding members

provided technical expertise gained from our experience in theof the GCCSI. Large-scale tests on CCS are being either conductedunderground storage of natural gas and enhanced oil-recovery
techniques2. The injection of CO2 into the aquifer at the testingor planned in Germany and the United States.

site was carried out from July 2003 to January 2005, during which

Japanese researchers have developed one of the mostadvanced technologies in the world in the form of a chemical-

we monitored the behavior of injected CO2 in the aquifer for

absorption technique1 for CO2 removal, and are working on

possible leakage. We have continued the monitoring even after

high-efficiency CO2 separation membranes that enable low-cost

the RITE project was completed at the end of 2007.

separation and capture of CO2.

1 Chemical-absorption technique: A technique to extract and recover CO2 using an
alkaline solution such as amine solution or potassium carbonate solution.

In May 2007, then Prime Minister Shinzo Abe proposed along-term goal of reducing GHG by 50% from the then current

2 Enhanced oil-recovery technique: A generic term given to the technologies that
apply to mature oil fields to increase their recovery of oil.

Conceptual Diagram of CCS
Inject CO2

Transport CO2

Separate andcapture CO2

Transport CO2

Ground injection well

Inject CO2

Off-shore injection well

Transportation via pipeline
Major source of CO2

Transportation
via pipeline

Impermeable layer

CO2

CO2
Underground Aquifer beneathaquiferthe ocean floor

28

INPEX Corporation CSR Report 2009

A Founding Member of the Global CCS Initiatives
Responding to Australian Prime Minister Kevin Rudd’s proposal

The GCCSI aims to launch 20 commercial CCS projects by 2020,

in September 2008 that Australia should lead other nations inand held its inaugural Foundation Members Meeting in April

CCS research and development, the GCCSI was established2009. Its immediate activities include defining areas in whichto accelerate the commercialization of CCS technology. We

to conduct the CCS business, calling for legislative support toresponded to the call of the Australian government by becoming

legalize the CCS business, and raising awareness of CCS in theone of the founding members of the GCCSI on February 15, 2009.

international community.

Helped to Establish Japan CCS Co., Ltd.
Thirty-one leading Japanese companies in the electricity,

working on a three-year feasibility study on a total CCS system1

petroleum refining, oil and natural gas development andsince fiscal 2008, using testing equipment for an integrated coalengineering industries joined forces to establish Japan CCS

gasification combined cycle located in Iwaki City in FukushimaCo., Ltd. in May 2008. Its mission is to carry out research andPrefecture and our old Offshore Iwaki Gas Field. In addition, with

development projects for CCS technology, and to conduct a

the support of and under the contract with the METI, Japan CCS

feasibility study on its commercialization in an effort to achieve

has also been performing a technical assessment of a number ofJapan’s stated goal of beginning large-scale testing of CCS

proposed testing sites for CCS in Japan to narrow them down totechnology at the earliest time, and of deploying CCS on aa couple, for which to prepare conceptual design and conduct

commercial basis by 2020. Among the major shareholders

on-site inspections, while working with research institutions

besides ourselves are Japan Petroleum Exploration Co., Ltd.,and universities to assess CCS technology in terms of safety,

Tokyo Electric Power Company, Kansai Electric Power Company,

environmental impact and economic viability.

Nippon Oil Company, Idemitsu Kosan, and JGC Corporation.

1 Feasibility study on the total CCS system: A study to evaluate the feasibility of theentire system that ranges from separating and recovering CO2 to transportingpressurized CO2 to injecting and storing CO2 underground.

Under the contract with Japan’s New Energy and Industrial
Technology Development Organization, Japan CCS has been

Achieved our Target in a Prototype Project for Voluntary Domestic Emissions
Trading Scheme
We are in agreement with the Japanese government’s goal of

fiscal 2008, we succeeded in meeting this target. We will strive toestablishing a policy and system for helping to prevent global

reduce emissions of CO2 and other GHGs in fiscal 2009 throughwarming, and participated in the government-backed Prototype

the use of natural gas we produce as fuel in our domestic project

Project of Voluntary Domestic Emissions Trading Scheme1. In ansites, the installment of energy-saving systems powered byapplication of the project, we set our own target of reducing thenatural gas for greater energy efficiency, and better operational

average emissions of CO2 and other GHGs per unit of production

control at oil and natural gas fields.

on a calorie basis from fiscal 2008 through 2012 by 30% below

1 Prototype Project of Voluntary Domestic Emissions Trading Scheme: A trial program
initiated by the Ministry of Economy, Trade and Industry and the Ministry of theEnvironment in 2008 for emissions trading among businesses to reduce CO2
emissions.

the fiscal 1990 level. This is in line with the target that the JPDA,
of which we are a member, has set in its voluntary action plan. In

To p i c s
Forestation Project in Australia
Through INPEX Browse, Ltd., an INPEX Group company, we
have been running a five-year test forestation project inAustralia since April 2008. We signed a contract with CO2Australia Ltd. and acquired land in June 2008, in which weplanted mallee eucalypts. We plan to check the growth of themallees in 2009 and will decide whether to launch a largescale forestation project to offset GHG emissions in Australia.

Planting mallee eucalypts

Test forestation site

INPEX Corporation CSR Report 200929

Environment

Conserving Biodiversity

Environment

Protecting ecosystems to ensure coexistence with the naturalenvironment around project sites
Our Ecological Conservation Initiatives
Before we start to develop project sites or construct pipelines, we

We also provide financial and material assistance to research

conduct environmental impact assessments of those projects

institutions and international organizations in their surveys of theto ensure that the ecosystems where we operate are preserved.

environment in the surrounding areas.

Ecological Approaches in the Shin Oumi Pipeline Construction Project
We contracted with a consulting firm to perform an

We have also been closely monitoring the river-water quality

environmental impact assessment before starting theand the ecosystem in the surrounding area to ensure that theconstruction of the Shin Oumi Pipeline.

construction has a minimal effect on them.

The assessment determined that runoff from theconstruction site might slightly affect the river-water quality
in the area and that construction noise might be of minor
disturbance to birds of prey, such as oriental honey buzzards,

We plan to conduct a post-construction assessment when
the project is completed.
Small animals found near the pipeline construction site

golden eagles, and falcons. Since the construction began,
we have been carrying out stringent quality management of
the runoff from the site to ensure that it is well within quality
standards; and we have been monitoring the noise level at andnear the site, ready to take action to reduce noise immediately if it
is found to be too annoying to birds of prey.

Japanese White-eyeBlack-spotted Pond Frog

Japanese Squirrel

Fish habitat survey

Biodiversity Protection in Kazakhstan
INPEX North Caspian Sea, Ltd., an INPEX Group company, has

The project will continue to conduct surveys to efficiently andbeen working as a member of an international consortium in

effectively protect and preserve biodiversity in the area.

the development of the Offshore North Caspian Sea Block—discovered in the North Caspian Sea PSA contract Area in
Kazakhstan—with the goal of beginning production in 2012 or
2013.
In this project, co-ventures developed an action plan in
September 2007, based on the country’s biodiversity strategy.
Since then, we have been monitoring the breeding habits ofseals and the habits of sturgeon in the Ural River through ID tags
attached to them, and conducting regular surveys of wild birds.

30

INPEX Corporation CSR Report 2009

Survey on breeding habits of seals
Attaching an ID tag to a sturgeon

Environment

Reducing Waste and Preventing Soil
Contamination

Environment

We strive to reduce industrial waste, including drilling andwaste mud
Recycling Drilling and Waste Mud Generated in Domestic Operations
The industrial waste we generate is composed primarily of well-

Other industrial waste in Japan, such as waste oil and metal

drilling and waste mud. In fiscal 2008, drilling and waste mud

scrap, amounted to 5,500 tons in fiscal 2008, of which 67%, or

accounted for 88% of the total amount of industrial waste we

3,700 tons, was recycled. Globally, 88% of all industrial waste,

generated globally.

amounting to 32,000 tons, was recycled.

The drilling and waste mud we generate in Japan is treated as
sludge; if it is found to contain more heavy metals than permitted
by the standards, it is disposed of as landfill; if heavy metals arefound to be below the permissible level, the sludge is recycled asmaterial for roadbeds. 29,000 tons of drilling and waste mud—or
84% of the total amount of industrial waste we generated—wasrecycled in 2008.

Industrial waste generated in domestic operations in 2008
Amount of disposed drilling waste
and waste mud
0%

Amount of other disposed waste
5.3%

Amount of otherrecycled waste
10.7%
Total

34,223

Mud fluids used for drilling contain varying concentrations

tonof heavy metals, depending on where the mud fluids are

Amount of recycled
drilling waste
and waste mud
84.0%

collected. We have taken a precautionary step against potential
soil contamination by working with a supplier of drilling fluids toanalyze and control the concentration of heavy metals in the fluids.

Soil Surveys to Determine Measures against Soil Contamination by Heavy Metals
and Benzene
Under the policy we have on voluntary soil surveys, we conduct abeing sanitized by a bioremediation process2. In May 2008, thesoil survey when we return a closed project site to its landownercontaminated area was cleaned and converted into a park at theor sell our land property.

request of local residents.

In fiscal 2008, we conducted soil surveys when we returned

An HSE audit conducted in the West Bakr Oil Field in Egypt

the oil production base in Akita City to its landowner, and when

discovered in January 2009 the presence of a large amount of

we sold the land and the building of one of our employee welfare

sand contaminated with crude oil produced in a drilling test

facilities in Shibuya-ku, Tokyo. When the survey found no soil

performed more than 20 years ago. We have separated thecontamination in either case, we returned and sold the land withcontaminated sand and have temporarily stored it while working

the survey results disclosed.

out the optimum treatment process for sand contaminated with

As a follow-up to an incident that occurred in December

heavy oil.

2005 where heavy naphtha leaked at Teiseki Topping Plant (TTP)1,

1 At TTP’s oil refinery in Joetsu Niiigata Prefecure, heavy naphtha leaked from a tankand contaminated the soil in a riverside park near the site and groundwater.

contaminated soil was removed and replaced with clean soil in

2 Bioremediation process: A process that uses microorganisms to clean up pollution.

2008. The contaminated soil is stored on TTP’s premises and is

Measures against an Environmental Incident Taken as
Part of HSE Enhancement
In fiscal 2008, human error and aging pipelines caused a series

and covered the affectedof oil leaks in the West Bakr Oil Field in Egypt. In March 2009,

area with plastic sheets to

30 barrels of crude oil leaked from a loosely closed, clogged

prevent the leaked oil fromvalve . We took emergency measures as specified in the HSEMS,

spreading. Additional steps

while investigating the cause of the incident and working out

are being taken to upgrade

measures for preventing a recurrence. We replaced old pipelines

HSE activities at the site.

Treating oil leak in Egypt

INPEX Corporation CSR Report 200931

Environment

Controlling Chemical Emissions

Environment

We control emissions of VOCs and other environmentally harmful
substances
Controlling Chemical Substances
In Australia, Europe, Japan and the United States, controllingrecovery device in crude-oil offloading units at the Nagaoka Field

chemical substances is required by law, and each one of our

Office, and burned or recovered VOCs contained in emissions

Operational Organizations reports and controls its emissions infrom dehumidifiers located in other Operational Organizations,accordance with the law of the country in which it operates.

which resulted in a reduction of nine tons, or 37%, of benzene

Pursuant to Japan’s PRTR Act1, our domestic Operationalemissions in Japan from a year earlier.

compound used for drilling they emit and transfer. Even after

1 The PRTR Act requires companies to report the volume of specific chemical
substances released into the environment and to improve their management of
those substances. This system measures the amount of chemicals potentially harmful
to humans or the environment that are released into the air, water or soil, as well as
the amount of waste transported from business premises

we succeeded in reducing the emissions of benzene by 90% in

Amount of Emissions as Reported under PRTR

Organizations report the amount of benzene, toluene, andxylene—contained in crude oil—and trivalent chrome

Benzene2001—the first year for which the PRTR Act mandated reporting,
we have continued to monitor the environment surrounding

XyleneToluene(Emissions in tons)

Operational Organizations by measuring the concentration

200

of benzene on a monthly basis. To further reduce benzene

150

emissions, we installed VOC-removal equipment, added internal

100

floating roofs to oil tanks, and controlled the dispersing of natural50

gas into the atmosphere. In fiscal 2008, we installed a VOC-

0

171

83
27 24 14
2002

6

2003

28 16

6

18 11

2004

2005

3

19 9

3

2006

24

9 3 15 6 22007

2008 (Year)

Curbing Emissions of VOCs
The VOCs that we emit in our business activities aretanker trucks with oil in the Nagaoka district. In November 2005,

hydrocarbons—methane not included—and our Operational

the Japan Natural Gas Association, of which we are a member,

Organizations track them globally.

formulated a voluntary action plan that sets a target of reducing

In fiscal 2008, we emitted 516 tons of VOCs in Japan, a

VOC emissions to 45% below the 2000 level by 2010. We havedecrease of 150 tons from the previous year. The reduction

already reduced our VOC emissions by half from the 2000 level,

resulted from burning vented natural gas in the Kashiwazaki

which is more than enough to meet the industry target.

district and by operating VOCs recovery equipment when filling

Monitoring Emissions into the Atmosphere
In fiscal 2008, we began to keep track of the amount of emissions

designate one of our boiler facilities as a facility that generates

of SOx, NOx and VOCs into the atmosphere in our Operational

industrial smoke as required by the Air Pollution Control Law

Organizations.

when the Mine Safety Law was amended. Upon discovery of

In Japan, we observe relevant laws that require us to measure

this oversight, we measured the amount of emissions, verified

the amount of emissions into the air and to meet emissionthat they were well within the standards, and so notified thestandards. We found, however, that we had unwittingly failed toauthorities.

Monitoring Wastewater Discharged into Public Water Bodies
Each of our Operational Organizations controls wastewater

discharged wastewater be measured, we have a measurement

discharged into public water bodies in accordance with the law

certification institution analyze our wastewater periodically toof the country in which it operates.

verify that we meet the legal standards. We began to measure the

In several Operational Organizations in Japan, where
the Water Pollution Control Law requires that the quality of

32

INPEX Corporation CSR Report 2009quality of drainage from mines regularly in accordance with theMine Safety Law, which was amended in April 2005.

Environment

Research and Development for Reducing
Environmental Loads

Environment

We continue R&D efforts to ensure a stable supply of energy andenvironmental integrity
Developing Technologies for Producing GTL and DME
As the energy industry is under mounting pressure to develop

completion of which the association will go to the next phase ofnext-generation energy systems, we are gearing up for therefining the technology for commercial use.

development of next-generation fuels with lower environmentalloads than coal or oil.
One such approach we are working on is to develop gas-toliquid (GTL)1 technology to convert natural gas into diesel oil andWe are also working on dimethyl ether (DME), an alternative
clean fuel made from natural gas, which does not generate toxic
substances when burned.
1 GTL technology: In a narrow sense, a technology to synthesize liquid fuel using the
Fischer-Tropsch process.

kerosene. Benefits of GTL oil are that it is made from natural gas
whose reserve-to-production ratio is larger than that of crude oil,that it can be stored and transported in its liquid form at normal
temperature, and that it generates a cleaner exhaust whenburned. In September 2007, construction of a pilot plant began at
a demonstration center of the Nippon GTL Technology Research
Association, which was established by six companies including
us. The pilot plant became operational on April 17, 2009 andbegan producing 500 barrels of GTL oil per day in June 2009.

GTL demonstraion plant

The plant is scheduled to run for two years to collect data, upon

Producing Methane Using Microbes
We have been researching technology to produce methane

another experiment in a rock core closer to an oil reservoir, andusing microbes that live underground in depleted oil fields in ancontrol the habitat and symbiosis environment of responsible

effort to address the challenging issues of global warming andmicrobes in an attempt to develop a technique to artificiallythe depletion of fossil energy. This technology is about using

control and stimulate a methane-generating reaction.

methane-producing bacteria to convert hydrogen—whichhydrogen-producing bacteria make from residual crude oil left inConceptual diagram of a methane-generating reaction
CO2

Oil or gas field

the reservoir of a depleted oil field—and CO2, which is injected

Natural gas

underground for carbon capture and storage, into methane.
If successful, it will be a big step toward building a sustainablecarbon-cycle system in which residual oil in depleted oil fields
and injected CO2 will be converted into methane.
In June 2008, in an attempt to step up the research effort, we

Cap rock(Impermeable layer)

Methanecosponsored a research program named “Sustainable Carbon-

Gas reservoir

Cycle System Engineering” with the Frontier Research Center

Oil reservoir

for Energy and Resources at the School of Engineering, Tokyo

Aquifer

University; both parties share each other’s research laboratories toachieve greater efficiency in conducting analysis and experiment.
We have conducted experiments in the Yabase Oil Field
we operate in Akita Prefecture, in which we have successfully
produced methane by injecting CO2 into the ground wherehydrogen-producing and methane-producing bacteria live under

CO2

Methane-producing
bacteria

H2

Bacteria that producehydrogen fromorganic substanceshigh pressure and temperature conditions. We plan to conduct

INPEX Corporation CSR Report 200933

Environment

Environmental Performance Data by Site

Environment

We keep track of our environmental impacts on a global basis bycollecting environmental performance data from projects sitesaround the world
INPEX Group’s Environmental Performance Data by Site for Fiscal 2008
Australia

Indonesia

Ichthys 1

Masela 2

1,000s of SCF

00

Crude Oil

BBL

0

0

Petroleum Products

BBL

—

—

LPG

BBL

—

—

Iodineton——Electricity

1,000s of kWh——

Purchased Gas

1,000s of SCF

0

0

BBL

0

0

Consumed Energy

GJ

216,141

143,026

Consumed Water

KL

15,783

6,277

CO2

ton

19,012

10,524

N2 O

ton-CO2

337

0

CH4

ton-CO2

164

0

ton-CO2

19,513

10,524Item

Unit

Natural Gas

Production and Processing Volume

Purchased Volume
Purchased Raw Materials

GHG Emissions

Total GHG Emissions
VOC

ton

34

0

NOx

ton

257

0

SOx

ton

0

0

Wastewater Discharged into Public Water Bodies

KL

0

0

Hazardous Waste8

ton

33

0

Non-hazardous Waste9

ton

79

0

Recycled, Reused and Reclaimed Materials10

ton

29

0

instance

0

0

BBL

0

0

instance

0

0

BBL

0

0

Total Instances of Oil Spills

instance00

Total Amount of Oil Spills

BBL

0

0

Emissions into the AtmosphereIndustrial Waste

No. of Instances
At SeaAmountOil Spills
No. of Instances
On Land
AmountTotal Oil Spills

1 Ichthys: INPEX Browse, Ltd.
2 Masela: INPEX Masela, Ltd.
3 INPEX Libya: INPEX Libya, Ltd.
4 Teikoku Oil Libya: Teikoku Oil U.K., Ltd.
5 Gas Guarico: Gas Guarico, S.A.
6 West Bakr: West Bakr Petroleum Co.
7 The volume the Company consumed in its operations is deducted from domestic
production and processing volume.

34

INPEX Corporation CSR Report 20098 Hazardous Waste is equivalent to “specified hazardous waste” as defined underJapanese law.
9 Non-hazardous Waste is equivalent to “other waste” as defined under Japanese law.
10 Recycled, Reused and Reclaimed Materials are equivalent to “recycled materials” asdefined under Japanese law.
11 Numbers in the table are rounded off to the nearest whole number. Thus the sum of
the numbers in each line may not be the same as the total number.
— : NA

LibyaINPEX Libya 3

Teikoku Oil Libya 4

Venezuela

Egypt

Japan

Gas Guarico 5

West Bakr 6

Domestic Operations 7

Total

0

0

28,584,000

060,206,607

88,790,607

0

0

0

517,107

1,790,779

2,307,887

—

—

—

—

1,421,784

1,421,784

—

—

—

—

62,65362,653

—

—

—

—

496

496

—

—

—

—

108,853

108,853

0

0

0

0

2,183,220

2,183,220

0

0

0

0

144,670

144,670

49,764

123,739

19,069226,418

2,895,508

3,673,666

8,640

31,0287,479

18,3901,160,646

1,248,243

3,762

9,176

2,701

14,690392,751452,616

0

20

3

4

274

638

0

7

3

956

18,833

19,963

3,762

9,203

2,707

15,650411,857

473,216

0

5

24

0

848

911

0

196

36

0

58

549

0

21

3

24

263

311

0

0

0

640,426

526,128

1,166,554

11

0

8

0

81

133

53

2,358

85

38

1,724

4,337

7

0

56

0

32,41832,510

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

36

0

37

0

0

0

133

0

133

1

0

0

36

0

37

0

0

0

133

0

133

INPEX Corporation CSR Report 200935

Safety

Ensuring Operational Safety

SafetyWe ensure safe operations and have an emergency response plan
as a company responsible for supplying the energy to our society
Safety Initiatives
We have implemented a wide range of precautionary measures

Operational Organization has translated these materials into

to ensure safe operations at headquarters and in Operational

its own HSE Management System Manual to meet its specificOrganizations around the world.

operational needs, and follows this manual in its safety activities.

Headquarters has prepared the HSE Management

Moreover, each Operational Organization is preparing to take

System Manual, which directs our HSE efforts, and Corporate

additional measures to prevent incidents induced by human

HSE Procedures, which deal with safety management. Eacherror.

Near-miss Prevention Activities to Raise Employees’ Level of Alertness
Our Operational Organizations in Japan have identified high-each equipment and location, created from submitted near-missrisk factors associated with their operations and their possible

reports, internal rules, and case studies on incidents. We encourageconsequences through near-miss prevention activities1. Some

employees to refer to these maps in meetings both before

Operational Organizations upload reports on to a shared databaseand during operations so as to raise their safety awareness andso that others will have access to the information.
These Operational Organizations also create their own nearmiss maps, which aptly illustrate high-risk elements of operations

alertness, as well as to share recognition of potential safety risks.
1 Near-miss prevention activity: Employees are encouraged to record small incidents
that do not involve human and material damage, but scare or startle them at projectsites to share their experiences with fellow workers so as to prevent a small incident
from become a serious one.

with graphics and photographs on a single sheet of paper for

Workplace Safety Education and Training
Our Operational Organizations in Japan devise an annual training

seminars on risk assessment, which are intended to raise theirplan for each of their operational sites and provide OJT-based

safety awareness and prevent errors in equipment handling.

training for employees to gain not only technical skills but also

1 Simulation training: Training through simulations on procedures for operating
equipment and for responding to a variety of situations.

knowledge and expertise in safety. In addition, they keep recordsof the training that each employee receives in order to provide
additional training that matches the level of understanding andproficiency that they have accumulated.
Staffers at operational sites receive hands-on training withequipment, including simulation training1, risk prediction
training, auditor training for ISO14001 and OHSAS, and off-site

Pipeline safety training session

Firefighting drill at Nagaoka Field OfficeVolunteer Firefighting TeamIn October 2008, when we relocated our headquarters to theproperty maintenance company, all of which helped to raise their

Akasaka Biz Tower in Tokyo, we formed a 70-member volunteer

awareness and knowledge of disaster-prevention.

firefighting team as required by the Fire Defense Law, to maintain

In May 2009, we conducted a fire drill at the Akasaka Biz

firefighting readiness in the event of a fire, earthquake or otherTower, in which all participants, wearing hard hats, evacuateddisaster.

the building using stairs to a designated evacuation space

Members of the team received a briefing on a disaster-outside. At the end of the drill, we received a briefing from a Fireprevention manual that we prepared for the new headquarters,

Department official and learned how to use fire extinguishers.

and on the use of a safety control system from the building’s

36

INPEX Corporation CSR Report 2009

Preventing Work-Related Incidents for Greater Safety
In fiscal 2008, we began collecting HSE-related data in

met the contractor to work out preventive measures, including

accordance with the Corporate HSE Procedure for HSE

adding more safety officers at the site who maintain day-to-day

Performance Data. In reporting our safety performance, we haveoperational safety and provide safety guidance to the workers,

redefined incidents as shown below to be consistent with theand installing additional gas-sensing devices. We also changed

safety performance indicators used by International Association

drilling methods to one that constructed the tunnel from theof Oil and Gas Producers, of which we are a member.

other side using an unmanned explosion-resistant excavation
machine. With these enhanced safety measures in place, theFatal incident: Incident involving a fatality.
Lost workday case: An incident involving a non-fatal injury
that results in at least one day off work.
Restricted workday case: Incident involving a non-fatal
injury that is not severe enough to prevent a person fromperforming lighter duties.
Medical treatment case: Incident involving a non-fatal injury
that requires a treatment by a medical professional.

tunnel got through on March 26, 2009.
We will continue to work closely with our contractors to stepup HSE management to prevent work-related incidents based on
the Contractors’ HSE Management Procedure.
Total Recordable Injury Rate in Domestic Operations
Company

Contractor

Overall

7.32

8.00

In fiscal 2008, 11 incidents occurred that involved non-fatal
injuries to our employees during our global operations: three lost

5.26

6.00

workday cases, one restricted workday case and seven medical
treatment cases. In addition, 32 incidents occurred that involved
contractor employees: one fatal case, four lost workday cases, five

4.00

2.00

restricted workday cases and 23 medical treatment cases.
In the early hours of July 15, 2008, a fatal incident occurred
at a construction site where one of our contractors had beenbuilding natural-gas pipelines for our Shin Oumi Line in Joetsu
City, Niigata Prefecture since 2007; an explosion killed two

2.85

0.78

0

1.11 0.96
LTIF

TRIR

Lost time injury frequency (LTIF): Number of injuries resulting in lost time (cases offatalities + lost workdays) per million hours worked
Total recordable injury rate (TRIR): Number of recordable injuries (cases of fatalities andlost workdays + cases of restricted workdays + cases requiring medical treatment) per
million hours worked

contractor employees during the tunneling. We immediately

Upgrading Contractors’ HSE Management
We require all our contractors to manage their HSE practices

associated with a contract work. Furthermore, we monitor andin accordance with our HSE Policy; we work closely with themevaluate contractors’ HSE performance against agreed-uponin an effort to prevent work-related incidents and reduce

criteria during the course of a contract work, and we ask them toenvironmental loads.

improve performance as necessary.

Accordingly, we have asked our contractors to upgrade their

In fiscal 2009, we will continue to have our contractors

HSE management practices. Each Operational Organization has

conduct better HSE management practices by making suretranslated the Corporate HSE Procedure for Contractors’ HSE

that they follow the Corporate HSE Procedure for Contractors’Management into its own Contractors’ HSE Management Manual

HSE Management and working out measures against incidents

that meets regional requirements and specific needs of theinduced by human error based on analyses of their root causes. In

project.

addition, we plan to prepare the Guidelines for HSE Requirements

In a competitive bid, we evaluate not only contractors’for Contractors—a set of more practical guidelines that areengineering expertise and cost estimates, but also their HSE

derived from the Corporate HSE Procedure for Contractors’ HSE

competence to select a winner. We also ask contractors toManagement and are intended to standardize HSE requirements

develop and implement their own HSE plans and manuals in an

for contractors.

effort to share with them HSE risks and management processes

INPEX Corporation CSR Report 200937

Safety

Emergency Response System

SafetyWe have an emergency response system in place to ensure
employee safety in the event of a disaster or emergency
Emergency Response Manual for Earthquakes
In October 2008, when we settled into our new headquartersin Akasaka, Minato-ku, Tokyo, we developed an Emergency
Response Manual for Earthquakes, and our employees werefamiliarized with it through briefings held in February 2009. In
the briefings, we provided every employee with an emergency
response card that contains information on an evacuation route,safety precautions during evacuation, the name and address ofthe company, and personal information of the cardholder, which
can be referred to in the event of an emergency.

A briefing session on the Emergency Response Manual

Emergency Response System to Deal with Deteriorating Security Situations andFires
In an effort to maintain preparedness for an emergency thatIn the second drill, conducted on March 5, 2009, 25 members

could impact our operations, we have developed the Corporateof the Corporate Crisis Management Team and members of theEmergency Response Procedure that outlines action to be taken

Crisis Management Team—set up within the Domestic Projectby headquarters and Operational Organizations in the event ofDivision—participated on the assumption that an oil tank had

an emergency.

caught fire at one of the refineries managed by the Domestic

We conducted two emergency response drills under mockemergency situations in fiscal 2008.

Project Division. In this drill, the team members followed theprocedures for notifying the news media, local residents, andThe first exercise was conducted on November 4, 2008, in

regulatory authorities of an incident, confirmed what assistancewhich 14 members of the Corporate Crisis Management Team

headquarters would provide to an Operational Organization in an

participated under the direction of the Director in charge of HSE,

emergency, and prepared a list of equipment necessary for theassuming that a riot had broken out in an overseas city in which

Corporate Crisis Management Team.

we operate. This drill provided the Team with an opportunity
to walk through the procedures described in the Corporate

We plan to conduct three emergency response drills in fiscal
2009.

Emergency Response Manual.

Employee Safety Confirmation System Introduced in Japan for Use in a
Devastating DisasterIn 2007, we introduced a texting-based safety confirmation

their safety if such a major crisis as pandemic flu erupts. Uponsystem designed to ascertain the safety of employees and assist

receipt of such a message, employees are required to report their

the quick recovery of business operations in the event of a large-

status via email. The system enables managers to keep check onscale disaster in Japan.

whether employees and their families are safe via a dedicatedIn this system, if an earthquake with an intensity of greaterthan 5 strikes, a text message will be automatically sent to all38

web page.
Since its introduction, we have conducted an exercise once

employees in the affected area; a text message will be sent toevery quarter, and the response rate in the May 2009 exercise

all employees around the country to ask for the verification ofreached 96%.

INPEX Corporation CSR Report 2009

Health

Employee Health Management

Health

We care about the physical and mental well-being of employees
working in various environments
Health and Welfare
Health Management for Employees Working in Project Sites
In some cases, our employees are posted to project sites inhelicopter to the nearest available medical facility to provide

remote locations or where a supporting infrastructure is not fully

appropriate treatment.

developed. We ensure that such sites are staffed with doctors
and medical personnel, who provide medical care for employees
involved in a work-related incident, regularly monitor their health,and maintain good hygienic management to prevent foodpoisoning and the outbreak of infectious diseases.
In the event of an emergency, we place the highest priority
on saving human lives. As a contingency for employees’ illness
or injuries on site, we have contracted a 24-hour emergency
medical service provider to transport emergency cases by

Helicopter landing at an offshore operation site

Operator’s Health Management
Health Management Plan for 2008

•Provide employees with health check-ups•Give flu shots to employees
employees with mental health care through seminars•Provideand stress checks
Raise
preparedness
for avian flu•
an emergency medical transportation system at•Establish
project sites
regular hygiene inspections of dining and housing•Conduct
facilities
contractors’ health management practices and•Monitorrecommend improvements

Review of Health Management Performance in 2008
Every Operational Organization executed almost all
health management items as planned for 2008. Items
that were insufficiently implemented in 2008, suchas providing employees with mental health care, andmeasures against pandemic flu need to be addressedand dealt with in a stepped-up manner in 2009.

Health Management Policy for 2009

•Prepare or update a health management manual
closely monitor contractors’ health•Moremanagement practices
the existing emergency medical•Upgradetransportation system
employees in overseas assignments with
•Provide
better mental health care
preparedness against pandemic flu: Establish•Raisea response system, prepare a manual, provide
employees with training, and stock up on necessary
peripheral items

Raising Preparedness against Pandemic Flu
Since 2007, we have been collecting information about

operating overseas, other E&P companies, the governments andpandemic flu (H1N5) through multiple sources including

health and medical organizations in the affected countries.

information service providers, to raise our preparedness against
the epidemic.
In fiscal 2008, all employees received a briefing on the flu

In due consideration of the information obtained, the Team
worked out a policy and countermeasures that apply to domestic
and international business travels and employees posted toto better understand protective measures, and were given aoverseas project sites and their families, as well as the prevention

protective kit including masks. In addition, we began devisingof infection or the spread of the flu.

a contingency plan for each pandemic phase1 that the World

We will continue to closely monitor the spread of Pandemic

Health Organization defined in an attempt to ensure employee(H1N1) 2009 and obtain the most up-to-date information on

safety and business continuity.

measures taken by other businesses, government authorities, and

Immediately after Pandemic (H1N1) 2009 broke out,

health and medical organizations as we attempt to prevent our

we mobilized the Corporate Crisis Management Team at

employees from contracting the flu.

headquarters and began collecting information on the spread of

1 Pandemic phase: A pandemic is a worldwide epidemic of an infectious disease. The
pandemic phase is based on a scale of 1 to 6, with Phase 6 being the pandemic
stage.

the flu and on the measures taken by other Japanese companies

INPEX Corporation CSR Report 200939

Human Resources
Management

Human Resources Management

To build a company capable of competing in the global arena, weevaluate and reward employees fairly and train them proactively
Basic Policy on Human Resources Management System
It is imperative to create an environment in which employees are

Basic Policy on Human Resources Management System

encouraged to reach their fullest potential, especially when two

1. A system that encourages all employees to play their part and work
as a team to achieve higher organizational goals, contributing to thegrowth of the company.

companies with different histories and policies are merged. We
have established the following basic policy based on a humanresources management system that contributes to a sustainable
development of the company in an attempt to create anorganization capable of competing in the global arena.

2. A system that encourages all employees to gain a broader perspective
on work duties so as to identify issues, come up with solutions on
their own initiatives, and act responsibly.
3. A system that assists all employees in their determined efforts tocontinue to pursue self-development through work over an extended
period of time.
4. A system that is transparent and straightforward in recognizing
the individual contribution of employees to achieving corporate
objectives and in making them feel that they are rewarded fairly.

Fair and Accurate Employee Evaluation
It is important to establish a credible employee evaluation systemevaluation meeting, a supervisor shares with a subordinate how

in order to reward employees fairly based upon the basic policy

the former evaluates the latter, and the employee discusses how

on human resources management system.

he or she evaluates himself/herself; through this process, both

Therefore, in our human resources management system,

parties can identify any gap between the two evaluations so that

we evaluate employees from the following three perspectives:

they can work out a plan to develop and improve the employee’s(1) Performance evaluation to evaluate an employee’s goalskills and knowledge.

achievement, including the means and methods used, and theUnder this employee evaluation system, employees cantime spent; (2) Competency evaluation to evaluate an employee’s

submit requests for new assignments and transfers. Althoughutilization of her/his ability in setting out and achieving individual

we cannot accommodate all requests, this gives the company

performance objectives; and (3) Value evaluation to evaluate

a better understanding as to what extent employees think they

an employee’s behavior and attitude toward the values that theare fit for their current assignments, and what career path they

Company strives to instill. In fiscal 2008, we added business ethics

wish to pursue, both of which are helpful for the company into the criteria for value evaluation, and stated that an employee

developing plans for recruiting and allocating human resources.

has a moral obligation to carry out the Company’s Corporate

To ensure that these systems perform as intended within

Social Responsibility Policy and HSE Policy, and to have highthe company, we first provided line managers with training on

moral standards as a member of the Company that contributes

corporate standards of value in September 2008, immediately

to society. This, coupled with the Compliance Manual, is intended

preceding the inception of the new company; managers with

to foster greater awareness and appreciation of CSR among ourevaluation roles received practical training on the evaluation

employees.

process in January 2009, immediately prior to its implementation.

The three-tiered evaluation is not simply something thatsupervisors perform on subordinates; it is a self-evaluation by an
employee that constitutes an integral part of the system. At an

40

INPEX Corporation CSR Report 2009

Finally, all employees received a briefing on how the new
evaluation system works in February 2009.

Labor-Management Council
Company management meets regularly with representatives ofmanagement council, during which both sides went over thethe INPEX Labor Union to exchange views and ideas on a broad

Company’s financial performance and an overview of eachrange of issues including the challenges that the Company faces

project, and discussed what could be done to curb excessive

and the business outlook.

overtime.

In December 2008, the new Company held the first labor-

Employee Training and Development
We provide a variety of training programs to employees withparticipate in on-the-job training programs at our overseas

leadership potential to develop global perspectives and learn tooffices such as those in Perth and Libya, and to continue higher

contribute to greater corporate values as well as to employees on

education abroad. We also encourage employees to pursue self-

the whole, to improve their competency.

learning through correspondence courses.

The training programs are tailored to each rank of employees
within the company—senior management, middle management
and new employees. For instance, we have a mentor system for
new employees, where a senior member of a section is assigned
to provide one-on-one, on-the-job training and mental support
to a new employee for the first 12 months of employment. We
also provide employees with compliance training to foster higher
business ethics among them. In addition, to enable employees
to improve their international communication skills, we provide
them with opportunities to study English in Great Britain to

Employee training program

Employment Opportunities for the Physically Challenged
As our CSR policy states, we strive to provide our employees witha worker-friendly work environment and opportunities for themto develop competencies as we value the diversity of employees,

Percentage of Physically Challenged Employees in Total
Employment
Number of physically challenged employees

their individualities, and their personal qualities Accordingly,40

we have been proactive in hiring the physically challenged. As

30

of March 31, 2009, 24 physically challenged employees, which

20

represents 1.72% of the total number of employees, are engaged

10

in clerical and support work.

0

1.50
18

Percentage in total employment

1.70

1.72

2.00

22

24

1.50

1.44
18

1.00
0.50

2005

2006

2007

2008 (Fiscal Year)

Providing Generous Childcare Support
We have instituted more generous childcare-leave programs

per day until their children reach the fourth grade; a program

than required by law, in an ongoing effort to provide childcare

to subsidize such employees with some of the expenses forassistance to our employees. In addition to allowing employees

nurseries, day-care centers and babysitters; and a flextime

to take childcare leave until their children are 18 months old, wearrangement that allows them to set their own schedule until

partially exempt employees with small children from overtime

their children reach school age. We will develop a general action

and night shifts. We also pay employees on childcare leave 20%

plan as an employer as required by Japan’s Law for Measures toof their salaries on top of the statutory childcare leave benefit.

Support the Development of the Next Generation in an effort

Furthermore, we have the following programs toaccommodate employees who have childcare challenges:

to help employees maintain a balance between their work andchildcare.

Reduced work hours that permit them to work two hours less

INPEX Corporation CSR Report 200941

Product Safety

Product Safety

We are upgrading our natural-gas production and supply
system to meet growing demand, while meeting safety andenvironmental requirements
Keeping Pipelines in Good Condition
Keeping our pipelines--which run for a total length of morestudies on incidents that have occurred at other exploration sites.

than 1,300 kilometers in Japan—in good working condition is a

We also compile case studies on past troubles to learn from them.

critical duty we have to fulfill in order to supply natural gas to our

In fiscal 2008, we began to apply the Manual for Contractors’

customers safely and securely. To accomplish this, Teiseki Pipeline,

HSE Management to contractors working on our pipelinean INPEX Group company, conducts visual inspections of theconstruction projects. The manual discusses our role andpipelines twice a week or more, and carries out routine physicalresponsibilities, our HSE requirements for contractors, and criteria

diagnostics to look for leaks or signs of corrosion.

for evaluating contractors’ HSE performance, and is based on

In addition, to prevent incidents during construction projects

our HSE Policy, Guidance on HSE Policy, HSE Managementthat the Company and its affiliates undertake, we brief all staffers

System Manual, and Corporate Procedure for Contractors HSE

and workers at construction sites on safety precautions and caseManagement.

A Reliable and Flexible Supply of Gas Using an Underground Storage System
Natural gas can be injected into a depleted gas or oil reservoir

when either the Koshijihara Plant or the Oyazawa Plant is closed,

for storage. The advantages of storing natural gas undergroundor during the peak demand period, allowing us to provide ancompared to storage in an artificial subsurface facility are that it

uninterrupted and flexible supply of gas. As of March 2009, we

has higher survivability when earthquakes occur, and is simple tohad 230 million normal cubic meters of gas stored underground.

operate for long-term storage. This method also makes it easier to
respond to seasonal fluctuations or a spike in demand.
Our Domestic Project Division has been storing natural
gas underground in the Sekihara Gas Field in Nagaoka, Niigata
Prefecture, since July 1968 to better respond to seasonal
fluctuations in demand. We upgraded the facility at the Sekihara
Plant in January 2008 to increase the daily output of gas from 1.6
million normal cubic meters to 2.4 million normal cubic meters.
Our pipeline network expanded when an extension to
the Shin Nagaoka Line was completed in December 2007,
connecting the Sekihara Plant and the Oyazawa Plant. This has
strengthened the function of the Sekihara Plant as a backup

Gas injection/ejection well at Sekihara Plant

Publishing GHS-Compliant MSDSs
In accordance with United Nations’ recommendations

MSDSs to our customers in July 2008. We will also incorporate

concerning GHS1, we will complete the revision and update of

into an MSDS the results of new component analyses of ourour MSDSs2 for natural gas, crude oil, petroleum products andcrude oil and petroleum products.

iodine products by December 31, 2010.

1 GHS: Globally Harmonized System of Classification and Labeling of Chemicals, A
system for standardizing the classification of hazardous chemicals.

When we began increasing production of natural gas in
the Minami Nagaoka Gas Field in 2007, emissions of benzene
exceeded the reporting requirements specified in the PRTR Law
and the Industrial Safety and Health Law; we provided updated

42

INPEX Corporation CSR Report 2009

2 MSDS: Material Safety Data Sheet. A document providing information regarding
chemical substances contained in a product.
The PRTR (Pollutant Release and Transfer Register, see p.32) Law comprises the PRTR
system for measuring, tabulating and reporting the amount of regulated chemicals
emitted into the environment, and the MSDS system mentioned above.

Improving Supply
System andCustomer Service

Improving Supply System and Customer Service

We seek increased production capacity and diversified sources ofnatural gas, while striving to offer better customer service
Increasing Production and Supply of Natural Gas
Establishing a More Stable Supply System of Natural Gas and LNG
The Minami Nagaoka Gas Field, our primary gas field located in

We have also been seeking diversified sources of natural

Nagaoka, Niigata Prefecture, has been increasing its productiongas, and will begin sourcing LNG from Shizuoka Gas Company

capacity to meet the growing demand for natural gas since thein January 2010. In July 2009, we began construction of the

Koshijihara Plant became operational in 1984. The Oyazawa Plant,

Naoetsu LNG Receiving Terminal in Naoetsu, Niigata Prefecture.

the second plant in the gas field, began production in 1994, andUpon completion of the terminal in 2014, we will begin receiving

additional capacity has since been added to both plants, resulting

LNG on the Sea of Japan side, which, coupled with LNG coming

in a combined daily output of more than 5 million normal cubic

through the Pacific coast and domestic natural gas production

meters.

sites, will give us secure and expanded sources of natural gas.

Expanding the Natural Gas Pipeline Network
Since we began operating the Tokyo Line—the first long-venture project among Shizuoka Gas Company, Tokyo Gas

distance high-pressure pipeline built in Japan—between Niigata

Company and us, connecting Gotenba and Fuji, also in 2006;

and Tokyo in 1962, we have applied a series of extensions andand finally the third phase of the Shin Tokyo Line, connecting

upgrades to the pipeline network, which now boasts a total

Karuizawa and Tomioka, in 2007. Looking ahead, the Shin Oumi

length of more than 1,300 kilometers running from the Sea ofLine, connecting Joetsu and Itoigawa, is scheduled to become

Japan to the Pacific coast.

operational in autumn 2009. We will continue to expand ourMore recently, we completed the Shizuoka Line, connecting

pipeline network to meet the growing demand for natural gas.

Kofu and Gotenba, in 2006; the Minamifuji Pipeline, a joint

Educational Seminar for Gas Station Managers
We have held an annual educational seminar for managers ofpresentation, and participants engage in a free discussion about

our gas stations since 2002. The seminar is held in Joetsu, Niigata

subjects related to the gas station business. This event gives a

Prefecture, and is attended by 15 gas station managers every year,

good opportunity for gas station managers to interact with each

who learn about the latest on the retail gas station industry andother and exchange ideas, which leads to better operations at

about workplace improvement.

gas stations. We incorporate feedback from participants into the

At this seminar, a speaker from outside the company gives aplanning of future seminars.

Listening to Customers
Our gas stations have been running a summer campaign every

the station, their thoughts on prices of petroleum products,

year since 2005. In this campaign, we ask customers to fill in

and requests for services we offered—were collected andquestionnaires in exchange for a chance to win awards, in ananalyzed. By sharing the findings with our franchisees andeffort to raise the brand awareness among drivers, attract new

relevant departments within the Company, each gas station was

customers, and retain repeat customers for increased sales ofable to understand what attracted customers the most and wepetroleum products.

were able to upgrade our customer service and provide better

In 2008, we ran a campaign from mid-July through August.
Information and feedback that participating customers
provided—about themselves, how often and why they usedmanagement assistance to our franchise partners.
We will continue to run this campaign to learn whatcustomers look for and deliver effective sales strategies.

INPEX Corporation CSR Report 200943

Fair Trade

Fair Trade

Our procurement policy is to do business with our suppliers in afair, responsible and compliant manner
Procurement Policy for all Purchases from Suppliers
Our procurement policy is to conduct business with our suppliersand contractors, and protecting the confidentiality of information

in a transparent, fair and responsible manner. The Domestic

and technologies owned by suppliers and contractors.

Project Division established the Guidelines for Fair Business

In April 2009, we formulated the Procedure for Handling

Conducts with Suppliers and Contractors in April 2006. The

Procurement, which defines the procurement process andguidelines prohibit practices that would unlawfully impede fair

procedures, and documents to be prepared, as well as delegationand free competition, abuse dominant bargaining positions,of authority in the procurement process, to ensure thator inappropriately bestow or receive benefits; in addition, theyprocurement practices are strictly enforced.

stipulate respecting intellectual properties owned by suppliers

Material storage
Guidelines for Fair Business Conduct with Suppliers
and Contractors

Ensuring Fair Trade Practices
We publish via intranet a rulebook that contains the Guidelines

as the primary binding principle for our procurement practices.

for Fair Business Conduct with Suppliers and Contractors, and

The Logistics Groups in the Domestic Project Division, thethe Procedure for Handling Procurement to familiarize every

Construction & Service Contract Group, the Material Control &employee with our fair trade practices. In the Logistics & IT

Purchasing Group, and the Project Services & Insurance Group at

System Division, which is directly responsible for sourcing

headquarters all hold internal meetings regularly to ensure thatmaterials and equipment, all employees refer to the guidelines

fair trade practices are followed in their sections.

and the procedure along with a compliance manual to refresh
their understanding of these rules, which call for transparent, fair

more vendors to take part in large bids to ensure greaterand responsible procurement practices.

competition and to reduce the number of discretionary

The Guidelines for Fair Business Conduct with Suppliers andContractors, and the Procedure for Handling Procurement serve44

We will continue to promote fair trade practices by inviting

INPEX Corporation CSR Report 2009

contracts.

Information
Disclosure

Information Disclosure

We keep shareholders and investors informed of our business toenable them to make an objective assessment of our corporate value
Keeping Shareholders and Investors Informed
The Company discloses corporate information in a timely

Disclosure as a basis forand appropriate manner through investor relations activities,

establishing an internal

general shareholders meetings, the company Web site, andsystem for disclosing

public relations outreach. This practice enables us to look at

information, and theour company from the perspective of our shareholders andrules define the Group-

investors, thus

wide management

further ensuringof information andtransparency,

the process offairness andcommunicating andcontinuity.

disclosing information.

We have

We post our disclosure

formulated thepolicy derived from theseRules for Corporate

rules on our Web site.

Information

Brochure for individual investors

General shareholders meeting

Investor Relations Activities
We are proactive in maintaining a dialogue with shareholders
and investors, by which we ensure greater transparency inmanagement and incorporate their feedback into decisionmaking.
In fiscal 2008, we gave two briefing sessions to financial
analysts and institutional investors to report financial results; held
624 investor relations (IR) meetings for them; and offered them
two tours to project sites. In addition, we held briefing sessions
for individual investors in eight cities in Japan, and participated in
two IR exhibitions.
We have conducted a shareholder survey once a year since2006 to collect feedback from shareholders and incorporate it
into management and IR activities. In fiscal 2008, we conducteda CSR-incentive questionnaire survey; the number of responses
from shareholders determined how much we would donate toa nature conservation group. This project yielded 295,700 yen,which we donated to the Keidanren Nature Conservation Fund.

INPEX booth at an IR exhibition

INPEX Corporation CSR Report 200945

Community
SupportEconomic AssistanceCommunity Support

Through a wide range of activities, we play a part in the sustainable
development of the local communities where we operate
Contributing Economically and Socially to Regional Development along the BTC
Pipeline RouteThe Group has participated in the BTC (Baku-Tbilisi-Ceyhan)term economic and social development in a wider geographical

Pipeline Project; a 1,768-kilometer-long pipeline that transports

area. In 2008, project members contributed U.S. $6.09 million to

crude oil from the Caspian Sea city of Baku in Azerbaijan, via Tbilisi

activities undertaken in Azerbaijan, Georgia and Turkey.

in Georgia, to the Mediterranean Sea port of Ceyhan in Turkey.

Our financial assistance is intended to: (1) improve living

As part of this project, we and our partners are engaged instandards and create business opportunities; (2) provide better

community investment programs to improve living standards

access to the social infrastructure; (3) provide better educationin the communities through which the pipeline passes, and weand medical care; andare implementing a regional development initiative for long-(4) revive agriculturein the region. We
liaise with state andlocal governments
and NGOs in working
out the details of
implementing these
programs.

A Farm to which we provided financial assistanceTextile mill run by female workers

Dredging Project in Venezuelan Harbor
In Zazarida, near the Moruy II Block in Venezuela, the great

phase of the project, we interviewed residents and met withmajority of residents live by fishing. For years, a steady stream ofthe mayor of the city and with local administrative authorities tosand flowing from the Zazarida River to the northeast of the city

ensure that the project will meet their needs. We also conductedhas been deposited on the bottom of Zazarida Harbor, which

an environmental impact assessment and consulted with theis so silted up that only small fishing boats can leave it for the

Venezuelan Ministry of Environment to ensure that the project

ocean. Residents have attempted to dredge the harbor several

would not damage the environment in the area.

times without much success, and so much sand flows into theWe have developed a basic plan for the project and will work

harbor that it becomes unusable again only a few years after thisout details with dredging contractors. We will begin construction

limited dredging is carried out.

in 2009, and the canal and dike are expected to become

To solve this problem, we are planning to conduct a large-

operational in 2010.

scale dredging operation in the harbor through PT Moruy II, an
operating company we partially own. The project will construct
a 40-meter-wide, 2-kilometer-long canal that will connect the
harbor and the
Moruy II Blockouter sea, along
which a dike will
be constructed toprevent sand from

Maracaibo

Zazarida

flowing into thecanal, and to ensure

Venezuela

the unobstructedpassage of fishingboats through thecanal. In the planning

46

Location of the Moruy II Block

INPEX Corporation CSR Report 2009

Briefing session for residentsCommunity
SupportSocial Action Programs

Community Support

We maintain constant communication with local communities
and participate in social action programs in the international
community
Maintaining Open Dialogue with Communities
We are building an LNG receiving terminal at Arahama Wharf

residents on the findings of an environmental impact assessment,

at Naoetsu Port in Joetsu, Niigata Prefecture, to respond toand on an outline of the construction to begin in fiscal 2009. We

the growing demand for natural gas in Japan and to secure awill proceed with construction while addressing concerns raisedsufficient supply over an extended term. When completed inby residents during the2014, the 25-hectare (62-acre) terminal will have two 180,000-

briefings.

kiloliter tanks with a capacity to add another tank. In March 2008,

When construction

the Niigata Prefectural Assembly approved the proposal to sell

begins in 2009, we will

the 18-hectare (44-acre) land developed for the terminal byprovide residents withreclaiming the foreshore under a revised harbor development

newsletters periodicallyplan, and we acquired the land in early fiscal 2009.

to keep them updated

By February 2008, we had given two briefings to local

on the project's progress.

Public relations newsletter for local residents

Donating Used Uniforms as International Aid Supplies
When we ceased asking female employees to wear company-of used uniforms were sent to the country with freight prepaid

supplied uniforms in fiscal 2008, we donated the used uniforms

by us. As Mali is in serious need of food, clothing and medical

to the Republic of Mali in Africa as part of an international aid

supplies, international aid supplies are a great help to its people.

program through the Motherland Academy. Twenty-four boxes

Participating in the Ecocap Movement
The Corporate HSE Committee decided to participate in the
Ecocap Movement, and the General Administration Unit has
taken the initiative in this activity since June 2009.
In the Ecocap Movement program, we collect PET bottle
caps from our offices and employees’ homes, and donate themto the Japan Committee of Vaccines for the World’s Children, an
NPO engaged in selling collected PET bottle caps to recycling
contractors and buying vaccines with proceeds from the sales.
This innovative program meets the dual purposes of helping
prevent children in the world from becoming ill and of recycling
resources.
We will raise employees’ awareness of and participation inthis humanitarian, eco-conscious program.

PET bottle caps

Pharmacist preparing a vaccine

INPEX Corporation CSR Report 200947

Donations andSponsorship

Donations and Sponsorship

We contribute to the social development of the areas where we
operate through relationship-building efforts, donations, andsponsorship
Inviting a Venezuelan Youth Orchestra to Perform in Japan
Venezuela has a youth-enlightenment program intended to

We received a letter of appreciation from the embassy for thegive the country’s underprivileged youth opportunities to playsponsorship.

classical music. This program was initiated by Dr. Jose Antonio
Abreu, the former Minister of Culture, in 1975, and has sinceorganized youth orchestras around the country, some of which
took members abroad to give public performances. One 250piece orchestra staged concerts in Tokyo and two other cities inJapan in December 2008 after performing in South Korea andChina.
We have been assisting the Venezuelan Embassy in Japanin its cultural events since 1992, when we began operatingin Venezuela; this is intended to foster and solidify good
relationships between the oil-producing country and the oilimporting country. Sponsoring the orchestra’s performances inJapan was part of this long-running relationship-building effort.

A performance in Japan

Donating Iodine to Cambodia
The Japan Iodine Industry Association, of which we are amember, has joined forces with Chiba Prefecture–known as oneof the leading producers of iodine in the world and the centerof the iodine industry in Japan—and UNICEF to donate 850
kilograms of potassium iodate to Cambodia on four occasions
since 2006.
The donations were part of an international humanitarian
aid program and a public health campaign to combat iodine
deficiency1 among people in Cambodia. The donated iodine wasadded to salt and made available to the Cambodian people. The
Cambodian Embassy in Japan expressed its gratitude by sayingthat the aid would help eradicate iodine deficiency in Cambodia.
1 Iodine deficiency: Hypothyroidism caused by the insufficient intake of iodine, which
is an essential element for the growth of a human body. Often found in people living
in an inland states or regions where iodine-rich marine foods are hard to get.

Iodine presentation ceremony

Donations for Communities Devastated by a Massive Wildfire in Australia
A massive wildfire burned through forests the size of Tokyo andand thank-you notes

killed 200 people in Victoria, Australia, in February 2009.

from Australia’s Minister

As a responsible corporate citizen carrying out an operator

and the Australianthrough the Australian Red Cross Society to communities hit by

Embassy in Japan.

the bushfire. We received a letter of appreciation from the Society

48

of Resources and Energy

project in Australia, we donated 200,000 Australian dollars

INPEX Corporation CSR Report 2009

Raging wildfire in Victoria

Third-Party Comment

Third-Party Comment on CSR Report 2009
Dr. Junichi Mizuo (Business Administration)
Professor at Surugadai University, Director of the Institute of Economic Research
Visiting Lecturer at Tokyo Institute of Technology Graduate School
Dr. Junichi Mizuo graduated from Kobe University of Commerce in 1970. Following a career at Shiseido Co., Ltd., he has been afaculty member at Surugadai University since 1999. While at Shiseido, through his experience in CSR management, he helped toestablish a business ethics policy and program ahead of any other company in Japan, and promoted its implementation in thecompany. He served in a variety of prominent positions, including: guest researcher at the Research Institute of Business Ethics at
Waseda University, a standing director at the Japan Society for Business Ethics, a director of the Nippon Academy of Management
Education, and a director of the Japan Management Diagnosis Association. He authored books titled “Seven Principles on
Management during Rough Ride” (Asahi Shinsho) and “Use CSR to Your Advantage” (Toyo Keizai), to name just a few.

INPEX CORPORATION (hereinafter referred to as “the Company”)

story about cultural exchange programs in which the Company

has a mission statement that expresses its commitment to playis engaged in many parts of the world, and about social andits part in supporting the sustainable development of society

economic development projects it undertakes in oil- and gas-through a stable and efficient supply of energy, and disclosed

producing countries. Moreover, I find the report’s discussion

what it accomplished toward fulfilling that mission in its CSR

about the Company’s involvement in community relations

Report 2009. I would like to comment on the report from theprograms and about its ongoing efforts to keep communities

perspective that combines theoretical and practical implications

informed of its business to be effective in helping stakeholders

of CSR, adopted from my own real-world experience in CSR

see the Company in a positive light.

implementation and my ongoing academic interests in CSR.

What I found that needs to be improved
What I found positive about the Report
The Report discusses in detail how the Company undertook
CSR initiatives and activities built around the HSE framework
to fulfill its corporate mission—both high-profile, aggressive
approaches to CSR and low-profile, behind-the-scenes
approaches

Recruit HSE Point Persons from throughout the company
to encourage more active involvement of field personnel in
HSE activities for diverse stakeholders
I would suggest that the Company clarify and prioritize
approaches to engage each group of stakeholders. This may

What I found positive about the Report upon close examination

become a basis for defining HSE Objectives for the followingof the high-profile and low-profile approaches discussed in it isfiscal year. More specifically, identify what needs each groupdetailed below.

of stakeholders has of the Company and what distinctive

Let me begin with the low-profile, behind-the-scenes

competencies the Company has; then compare them against

approaches to CSR. The Report gives us a clear idea of how theeach other to determine which competency can meet which

Company—from top management to front-line employees—isneeds. It would also be a good idea to disclose the process of thiscommitted to CSR based on the distinctive HSE Management

exercise in a future report.

System; it discusses how vigorously the Company pursues the

The key is to encourage employees to become more actively“3Ss”—safety, security and stability, three essential ingredients

involved in the entire process. This is because employees areof an energy company—in the areas of corporate governance,

not only an important group of stakeholders, but also are key

environment preservation, human rights and labor. It also gives

people who keep these programs running. I would suggest thata detailed account of the Company’s oil and gas business that

the Company increase HSE Point Persons from each division andranges from acquisition of license blocks to development andorganize them into teams that drive grassroots HSE activities.

production to refining, shipment and sales.

It would be perfect if the Company could take a top-downWith regard to high-profile, aggressive approaches to CSR,

approach to HSE and a bottom-up approach to HSE with middle

the Company discloses in a feature story how it maintains andmanagers working as glue to bridge them together. I sincerely

promotes good community relations in oil- and gas-producing

hope the Company will continuously improve its CSR initiatives

countries. In particular, we can see that the Company is playing its

and performances to achieve sustainable growth.

role as a global company in its support of social causes from the

INPEX Corporation CSR Report 200949

List of Indicators Based on GRI G3 Guidelines
In preparing this report, we referred to the G3 Sustainability Reporting Guidelines published by the GRI in 2006. Below is a list of indicators based on the G3
Guidelines. For each indicator that is covered in this report, we provide the page of the report in which the corresponding information is discussed.

Item

Indicator

Relevant
Page in CSR
Report 2009

1. Strategy and Analysis

Item
4.11

Explanation of whether and how the precautionary approach or
principle is addressed by the organization

1.1

Statement from the most senior decision-maker of the organization
about the relevance of sustainability to the organization and its
strategy

4, 5

1.2

Description of key impacts, risks, and opportunities

8, 9

4.12

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses

4.13

Memberships in associations (such as industry associations) and/or
national/international advocacy organizations

2.1

Name of the organization2

2.2

Primary brands, products, and/or services

2

2.3

Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures

2.4

Location of organization’s headquarters

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevantto the sustainability issues covered in the report

2.6

Nature of ownership and legal form

2

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries)2

2.8

Scale of the reporting organization

2

2.9

Significant changes during the reporting period regarding size,
structure, or ownership

4

2.10

Awards received in the reporting period—

Relevant
Page in CSR
Report 2009—

Commitments to External Initiatives

2. Organizational Profile

Web site37

Stakeholder Engagement

AnnualReport4.14

List of stakeholder groups engaged by the organization

—

2

4.15

Basis for identification and selection of stakeholders with whom toengage—2, 4, 12

4.16

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group

—

4.17

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key
topics and concerns, including through its reporting—

5. Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
EC

Goals and Performance—

3. Report Parameters

EC

Policy—Report Profile

EC

Additional Contextual Information—

3.1

Reporting period (e.g., fiscal/calendar year) for information provided

3

3.2

Date of most recent previous report (if any)—

3.3

Reporting cycle (annual, biennial, etc.)—

3.4

Contact point for questions regarding the report or its contents

Process for defining report content

2, 5

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers)2

3.7

Any specific limitations on the scope or boundary of the report2

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations—

3.9

Data measurement techniques and the bases of calculations,
including assumptions and techniques underlying estimations applied
to the compilation of the Indicators and other information in thereport—3.10

Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement

—

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report

2

Table identifying the location of the Standard Disclosures in the report50

Assurance
3.13

Policy and current practice with regard to seeking external assurance
for the report—

4. Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization

10

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer—

4.3

For organizations that have a unitary board structure, state thenumber of members of the highest governance body that are
independent and/or non-executive members

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and othercommunity investments, retained earnings, and payments to capitalproviders and governments

EC2

Financial implications and other risks and opportunities for theorganization’s activities due to climate change

EC3

Coverage of the organization’s defined benefit plan obligations—

EC4

Significant financial assistance received from the government—

EC5Range of ratios of standard entry level wage compared to local
minimum wage at significant locations of operation—

EC6

Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation

44

EC7

Procedures for local hiring and proportion of senior management
hired from the local community at locations of significant operation—

EC8

Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in- kind, or
pro bono engagement

14, 15, 45, 46,
47, 48EC9Understanding and describing significant indirect economic impacts,
including the extent of impacts—

AnnualReport—Disclosure on Management Approach
EN

Goals and Performance

EN

Policy22, 23
19

EN

Organizational Responsibility

20

EN

Training and AwarenessEN

Monitoring and Follow-up

21

EN

Additional Contextual Information—

20, 21

Environmental Performance Indicators
EN1

Materials used by weight or volume

24

EN2

Percentage of materials used that are recycled input materials—

EN3

Direct energy consumption by primary energy source

24

EN4

Indirect energy consumption by primary source—

EN5

Energy saved due to conservation and efficiency improvements

22, 23—

EN6

Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements as aresult of these initiatives—

EN7

Initiatives to reduce indirect energy consumption and reductions
achieved—

EN8

Total water withdrawal by source

24

EN9

Water sources significantly affected by withdrawal of water—

EN10 Percentage and total volume of water recycled and reused—

Location and size of land owned, leased, managed in, or adjacent to,
EN11 protected areas and areas of high biodiversity value outside protected
areas

—

Description of significant impacts of activities, products, and services
EN12 on biodiversity in protected areas and areas of high biodiversity value
outside protected areas

30

10

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body

4.5

Linkage between compensation for members of the highest
governance body, senior managers, and executives, and theorganization’s performance

4.6

Processes in place for the highest governance body to ensure conflictsof interest are avoided

AnnualReport4.7

Process for determining the qualifications and expertise of
the members of the highest governance body for guiding theorganization’s strategy on economic, environmental, and social topics

AnnualReport4.8

Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental, andsocial performance and the status of their implementation

4, 5, 6, 19

4.9

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationallyagreed standards, codes of conduct, and principles

20

4.10

Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental,
and social performance—

INPEX Corporation CSR Report 2009

EC1

Environmental

GRI Content Index
3.12

Economic Performance Indicators

Back cover

Report Scope and Boundary
3.5

50

Indicator

41

EN13 Habitats protected or restored

30

Strategies, current actions, and future plans for managing impacts on
EN14 biodiversity

—

Item

Indicator

Relevant
Page in CSR
Report 2009

Number of IUCN Red List species and national conservation list species
EN15 with habitats in areas affected by operations, by level of extinction risk—

EN16 Total direct and indirect greenhouse gas emissions by weight

26

EN17 Other relevant indirect greenhouse gas emissions by weight

26

Initiatives to reduce greenhouse gas emissions and reductions
EN18 achieved

26-29

EN19 Emissions of ozone-depleting substances by weight—

EN20 NO, SO, and other significant air emissions by type and weight

32

EN21 Total water discharge by quality and destination—

EN22 Total weight of waste by type and disposal method

31

EN23 Total number and volume of significant spills

31, 34, 35

Item

Relevant
Page in CSR
Report 2009

Indicator

Human Rights Performance Indicators
HR1

Percentage and total number of significant investment agreementsthat include human rights clauses or that have undergone humanrights screening—

HR2

Percentage of significant suppliers and contractors that haveundergone screening on human rights and actions taken—

HR3

Total hours of employee training on policies and procedures
concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained—

HR4

Total number of incidents of discrimination and actions taken—

HR5

Operations identified in which the right to exercise freedom of
association and collective bargaining may be at significant risk, andactions taken to support these rights—

Weight of transported, imported, exported, or treated waste deemed
EN24 hazardous under the terms of the Basel Convention Annex I, II, III, and
VIII, and percentage of transported waste shipped internationally—

HR6

Operations identified as having significant risk for incidents of childlabor, and measures taken to contribute to the elimination of child
labor

—

Identity, size, protected status, and biodiversity value of water
EN25 bodies and related habitats significantly affected by the reportingorganization’s discharges of water and runoff—

HR7

Operations identified as having significant risk for incidents of forced
or compulsory labor, and measures to contribute to the elimination offorced or compulsory labor—26, 27, 28,
29, 33HR8

Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant
to operations

—

—

HR9

Total number of incidents of violations involving rights of indigenous
people and actions taken—

Initiatives to mitigate environmental impacts of products and services,
EN26 and extent of impact mitigation
Percentage of products sold and their packaging materials that are
EN27 reclaimed by category
Monetary value of significant fines and total number of nonEN28 monetary sanctions for non-compliance with environmental laws andregulations—

Society
Disclosure on Management Approach

Significant environmental impacts of transporting products andEN29 other goods and materials used for the organization’s operations, andtransporting members of the workforce

24, 25, 26

EN30 Total environmental protection expenditures and investments by type22, 23

Labor Practices and Decent Work
Disclosure on Management Approach
LA

Goals and Performance—

LA

Policy40

LAOrganizational Responsibility—

LATraining and AwarenessSO

Goals and Performance

SO

PolicySO

Organizational Responsibility

SO

Training and Awareness44

SO

Monitoring and Follow-up—

SO

Additional Contextual Information—

Monitoring and Follow-up—

LA

Additional Contextual Information—

Labor Practices and Decent Work Performance Indicators—

Society Performance Indicators
SO1

Nature, scope, and effectiveness of any programs and practices thatassess and manage the impacts of operations on communities,
including entering, operating, and exiting—

SO2

Percentage and total number of business units analyzed for risks
related to corruption—

SO3

Percentage of employees trained in organization’s anti-corruption
policies and procedures—

SO4

Actions taken in response to incidents of corruption—

SO5

Public policy positions and participation in public policy development
and lobbying—

SO6

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country—

SO7

Total number of legal actions for anti-competitive behavior, anti-trust,and monopoly practices and their outcomes—

SO8

Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations—

40, 41LA—11, 44

Total workforce by employment type, employment contract, andregion—LA2

Total number and rate of employee turnover by age group, gender,and region—

LA3

Benefits provided to full-time employees that are not provided totemporary or part-time employees, by major operations—

LA4

Percentage of employees covered by collective bargaining
agreements—

LA5

Minimum notice period(s) regarding operational changes, including
whether it is specified in collective agreements—

Product Responsibility

LA6

Percentage of total workforce represented in formal joint
management–worker health and safety committees that help monitor
and advise on occupational health and safety programs—

PR

Goals and Performance

PR

Policy—PR

Organizational Responsibility—

PR

Training and Awareness

43

PR

Monitoring and Follow-up

43

PR

Additional Contextual Information—

LA1

Disclosure on Management Approach

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, andnumber of work-related fatalities by region—

LA8

Education, training, counseling, prevention, and risk-control programsin place to assist workforce members, their families, or community
members regarding serious diseases

39

LA9

Health and safety topics covered in formal agreements with tradeunions—

LA10

Average hours of training per year per employee by employee
category—

LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing
career endings

—

LA12

Percentage of employees receiving regular performance and careerdevelopment reviews

—

LA13

Composition of governance bodies and breakdown of employees
per category according to gender, age group, minority groupmembership, and other indicators of diversity

—

LA14

Ratio of basic salary of men to women by employee category—

Product Responsibility Performance Indicators
PR1

PR2

PR3

PR4
PR5

Human Rights
Disclosure on Management Approach

PR6

HR

Goals and PerformanceHR

Policy—HR

Organizational Responsibility—

HRTraining and Awareness—HR

Monitoring and Follow-up—

HR

Additional Contextual Information

—

—

—
PR7

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures
Total number of incidents of non-compliance with regulations andvoluntary codes concerning health and safety impacts of products
and services during their life cycle, by type of outcomesType of product and service information required by procedures,and percentage of significant products and services subject to suchinformation requirements
Total number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information andlabeling, by type of outcomes
Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising,promotion, and sponsorship
Total number of incidents of non-compliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes

—

—

—

—
43
—

—

PR8

Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data—

PR9

Monetary value of significant fines for non-compliance with laws andregulations concerning the provision and use of products and services—

INPEX Corporation CSR Report 200951

Corporate Strategy & Planning Unit
Research & CSR Group
32th Floor, Akasaka Biz Tower,
5-3-1 Akasaka, Minato-ku, Tokyo, 107-6332, Japan
Telephone: +81-3-5572-0231
http://www.inpex.co.jp/english/index.html

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