Oil and Gas Glossary

Corporate Information(As of March 31, 2011)■ Brent crude
A type of crude oil that holds a major positionin the mar ket for cr ude oil prices. Brent
crude is a light oil with low sulfur content
and is mainly extracted from the Brent oilfield located in the North Sea of the United
Kingdom.
■ Concession contract
A contract that directly grants mining rights(including mining rights in Japan and permits,licenses and leases in other countries) to oilcompanies through a contract or approval
from the government of oil-producing
countries or from national oil companies.
The oil company itself makes investment andholds the right for disposition for the acquired
oil and gas. Oil-producing countries receive
taxes or royalties from sales.
■ Condensate
Generally, a type of crude oil extracted as aliquid from gas fields. Liquid (oil) that exists
as a gas underground but that condenses
when extracted to the surface is referred to ascondensate oil or simply as condensate.
■ International Energy Agency (IEA)
A joint ac tion agency for energy, the IEA
is composed of the major oil- consumingcountries. The agency was founded in 1974
as an independent organization af filiatedwith the OECD. The agency has 28 member
countries.
■ LNG (Liqueﬁed Natural Gas)LNG s t ands for liquid natur al gas. Af ter
removing impurities such as moisture, sulfur
compounds and carbon dioxide from natural
gas with a chief cons tituent of methane,
the gas is liquefied by cooling to ultra-low
temperatures (-162°Celsius). This process
compresses the volume of the gas to 1/600,
thus making it possible to transpor t large
quantities in a single shipment.
■ LPG (Liqueﬁed Petroleum Gas)
LPG stands for liquid petroleum gas, an oil
product that is a mixture of hydrocarbon gaseswith a carbon number of 3 or 4, for example,
propane, propylene, butane, but ylene ora mix ture of these as main cons tituent s.
Although LPG is a gas at ambient temperatureand normal pressure, it is liquefied throughexposure to low pressures or temperatures(cooling).
■ Oil majors
Oil majors are also known as majorinternational oil companies. ExxonMobil (U.S.),Royal Dutch Shell (U.K./Netherlands), BP (U.K.),

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INPEX CORPORATION Annual Report 2011

Chevron (U.S.) and TOTAL (France) are famousas the ﬁve oil majors. Each of these companies
possesses an integrated system including
departments for conducting both upstream
and downstream business.
■ Oil sands
Sandstone beds that contain an extremely
viscous tar-like crude oil which has no ﬂuidity
in it s initial s t ate. This is as opposed toconventional crude oil which can be easily
pumped upward using a well. Depending on
the level of viscosity, crude oil extracted fromoil sand is referred to as bitumen or extra
heavy crude oil.
■ Operator
In the case of multiple parties to a contract
regarding blocks of oil/gas and associatedE&P work, a joint operating agreement isentered into bet ween the par ties and itis necessar y to achieve agreement on therights and obligations for all items required
when conducting operations. At that time,
the party responsible for the execution andmanagement of the operations is referred toas the operator. In contrast, parties other thanthe operator are referred to as non-operators.
■ Probable reserves (our company)
The definition of probable reser ves is inaccordance with regulations (2007 PRMS)
for mulate d by t he Societ y of Pet roleum
Engineers (SPE) through suppor t from theWorld Petroleum Council (WPC), the American
Association of Petroleum Geologists (AAPG)
and the Societ y of Petroleum Evaluation
Engineers (SPEE). The rule defines probablereserves as the estimated quantities of crude
oil and natural gas that can be added toproved reserves and commercially collectedbased on geological and engineering data.
■ Production sharing contract (PSC)
A contract in which one or more companies
i nvo l ve d i n t h e d eve l o p m e nt of oil a n dnatural gas acts as a contractor andunder takes operations for exploration anddevelopment on behalf of the governmentsof oil-producing countries or national oilcompanies. The contrac tor is responsible
for the costs associated with the operations.
Corresponding amounts for cost recovery andcompensation are received from production
by a contractor.
■ Proved reserves
T h e d e f i n i t i o n o f p r ove d r e s e r ve s i s i naccordance with SEC Regulation S-X Rule
4-10, a rule that is well-known among investors
in the United States. The rule deﬁnes proved
reserves as the estimated quantities of crude
oil and natural gas that can, with reasonable
cer tainty and under current economic andoperating conditions, be collected from agiven date forward based on geological andengineering data.
■ Reserves to production ratio
The reserves to production ratio (R/P ratio)
is calculated by subtracting the production
for a given year from the reserves at the endof that year. The resulting ﬁgure is applied tothat particular oil field or region and shows
how many years production can be continued
if annual production continues at the amountfor that year.
■ Rig
Machinery for drilling a well that is used tosearch for and produce oil and natural gas.
■ Royalty
Royalty refers to a speciﬁc share of productionr e s e r ve d by t h e o w n e r of u n d e r g r o u n dminer als (e.g., a s t ate or a municipalit y)when granting mining rights, without taking
responsibility for production costs. In somec as es, t he s hare inc reas es according toincreases in production. Royalties may be paidin kind or in cash.
■ Shale gas
A type of unconventional natural gas that iscontained in mudstone. It is referred to as
shale gas because it is contained in shale
within the mudstone. Shale is particularly hard
and tends to peel into ﬂakes.

Corporate Data
Company Name
INPEX CORPORATION
Established
April 3, 2006
Capital¥290,809,835,000
Company Headquarters
Akasaka Biz Tower 5-3-1 Akasaka, Minato-ku,
Tokyo 107-6332, Japan

Number of Employees (Consolidated) 1,854
Main BusinessResearch, ex plor ation, development,p ro d u c t io n a n d s ale s of oil, nat ur al g as
and other mineral resources, other related
businesses and investment and lending tocompanies engaged in these activities.

Organization Chart (As of June 30, 2011)
Shareholders’ Meeting

Abu Dhabi Project Division

Audit Unit

Technical Division

HSE Unit

Oil & Gas Business Division 1

Masela Project Division

General Administration Division

Oil & Gas Business Division 2Ichthys Project DivisionCorporate Strategy &Planning Division

Asia, Oceania & Offshore Japan
Project Division

Domestic Project Division

Finance & Accounting Division

America & Africa Project Division

Pipeline Construction Division

Logistics & IT System Division

Eurasia & Middle East Project Division

LNG Receiving Terminal
Construction Division

Board of Auditors

Board of Directors

Compliance Committee
Management Committee

President

Stock Data
Authorized Shares: 9,000,000 common shares

Total Number of Shareholders and Issued Shares
Common shares: 38,753 shareholders/3,655,809 shares
Special-class share*: 1 shareholder (Minister of Economy, Trade andIndustry)/1 share

1 special class share* The Company’s Articles of Incorporation stipulate that certain major corporate
decisions require a resolution by the holder of the special-class share inaddition to the approval of the shareholders’ meetings or Board of Directors.

Major Shareholders (Common Shares)

Unit Conversion
Crude oil1 kl 㲈 6.29 barrels
1 ton 㲈 7.4 barrels
1 barrel 㲈 6,000cf (natural gas)100,000 barrels/day 㲈 4 million tons/year (LNG)
Natural gas
1 cf 㲈 1,000 Btu*
1 billion m3 㲈 700,000 tons (LNG)
100 million cf/day 㲈 700,000 tons/year (LNG)
1 trillion cf 㲈 1 million tons 20 years (LNG)(20 million tons)
Sale gas
1 m3 㲈 37.32 cf
LPG
1 ton 㲈 10.5 barrels (crude oil)
LNG
1 ton 㲈 8.8 barrels (crude oil)
㲈 1,400 m3 (natural gas)
㲈 53 million Btu*

Shareholding by Shareholder Type

Name

Number ofshares

Percentageof total
shares*(%)

Minister of Economy, Trade and Industr y692,307

18.9

Japan Petroleum Exploration Co., Ltd.

267,233

7.3

Mitsui Oil Exploration Co., Ltd.

176,760

4.8

Mitsubishi Corporation

134,500

3.7

JX Holdings, Inc.

134,432

The Master Trust Bank of Japan, Ltd.
(Trust Account)
Japan Trustee Ser vices Bank, Ltd.
(Trust Account)

Percentageof total
shares* 1(%)

Number ofshareholders

Number ofsharesFinancial Institutions (IncludingTrust Accounts)

112

529,646

14.5

Securities Companies

4725,738

0.7

Other Domestic Corporations

430

826,752

22.6

3.7

Minister of Economy, Tradeand Industry* 2

1692,30718.9

130,362

3.6

Foreign Corporations andOther

673 1,468,447

40.2

124,404

3.4

Individuals and Other

State Street Bank and Trust Company

99,989

2.7

JP Morgan Chase Bank 380055

95,2392.6State Street Bank and Trust Company
50522359,362

1.6

Shareholder type

Treasury Stock

37,489108,003

3.014,916

0.1*1 Percentage of total shares are for all issued and outstanding shares.
*2 Excludes one special class share.

Financial /Corporate Information■ BarrelIn the case of oil, 1 barrel is equal to 42gallons (approx. 159 liters).

* Percentage of total shares are for all issued and outstanding shares.

*British thermal unit

Home PageInquiries

Note: Unit-equivalent figures are estimates. We
cannot guarantee those ﬁguresʼ accuracy as applied
to dealing or veriﬁcation.

The Company’s Web site provides investors with the most up-todate IR information, including ﬁnancial statements.
http://www.inpex.co.jp/

Please contact us at:
INPEX CORPORATION
Corporate Strategy & Planning DivisionCorporate Communications Unit
Investor Relations Group
Phone: +81-3-5572-0234, Fax: +81-3-5572-0235

INPEX CORPORATION Annual Report 2011

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