Appendix : Additional Slides

1Highlights of the FY2006 Semiannual Non-consolidated Financial Results

1H ofFY2005

1H ofFY2006

Change%changeNet sales

95.2

120.2

25.0

26.3%

Operating income

50.0

75.3

25.2

50.5%

Ordinary income

50.6

77.6

27.0

53.3%

Net income

21.7

34.9

13.1

60.7%

11,587.35

18,194.20

6,606.85

57.0%(Billions of yen)

Net income per share (¥)*

*Based on averaged shares outstanding (1H of FY2006: 1,919,832 shares, 1H of FY2005: 1,876,337shares). Due to increase in shares outstanding
during the term (May 17, 2005) caused by stock exchange for acquisition of JODCO, averaged shares outstanding has increased from 1H of FY2005
to 1H of FY2006

2

Overview of Consolidated Balance Sheets
Total： 886,195(Millions of yen)
Total： 779,227

Total： 525,298 24%

30%

23%

31%

22%

23%
20%
24%

32%
9%
6%

4%

4%
69%

70%

76%

53%

51%

53%

FY2004
Cash and Deposits*+Marketable Securities**
Notes： ***Other AssetFY2005
Total Debt

Other Liabilities

1H of FY2006
Minority Interests

Shareholders’ Equity

Including collateralized fixed-term deposit of JPY 9,140 million for FY2004, of JPY 8,200 millions for FY2005, and of JPY 8,610
million for 1H of FY2006
Government Bonds, Local Government Bonds and Companies’ Bonds (with determinable value)3

Earning Before Interest, Depreciation andAmortization, and Exploration (EBIDAX)*(Millions of yen)

125,996

120,000
100,000
80,00083,05176,01460,00040,00020,000
0FY2004
Note: *FY2005

1H of FY2006

Net Income + Minority Interests + Deferred Tax + (1 – Tax Rate) x (Interest Expense – Interest Income) + (Depreciation and Amortization +Recovery of Recoverable Accounts under Production Sharing (Capital Expenditure)) + (Exploration Expenses + Provision for Allowance
for Recoverable Accounts under Production Sharing) + Amortization of Exploration and Development Right + Foreign Exchange Profitand Loss. Our EBIDAX measures may not be comparable to other similarly titled measures of other companies

4

Details of EBIDAX Calculation for the 1H of FY2006
Source(Millions of yen)
Net income
Minority interests
Depreciation equivalent amount

51,659

P/L

(27)

P/L

29,294

Depreciation and amortization
Recovery of recoverable accounts
under production sharing(capital expenditure)

6,610
22,684

Exploration cost equivalent amount

2,828

Exploration expenses
Provision for allowance forrecoverable accounts underproduction sharing

Material non-cash items
Deferred income taxes
Foreign exchange (gain) loss

2,519
309

C/F
C/F

Depreciation under concession agreements and G&A
Depreciation under PS contracts

P/L
P/L

Exploration expense under concession agreements
Exploration expense under PS contracts(366)(5,159)
4,793

Amortization of exploration anddevelopment rights

46

Net interest expenses (income),
after tax(383)

EBIDAXNotes

P/L
C/F

P/L Cash expense for acquisitions of assets underexploration phase
P/L After-tax interest expense minus interest
income83,051
5

Estimate of Exploration Cost Equivalent Amount(Billions of yen)

21.6

20.0
15.0

10.0

9.1

10.0
5.0

11.5

0.0
FY2004

5.2

2.9

2.8

0.5
2.4

3.8

0.3
2.5

FY2005

FY2006E

1H ofFY2006

Provision for allowance for recoverable accounts underproduction sharing (PS contract)
Exploration expenses (concession agreement)

6

INPEX Group Key Contracts
Field
Mahakam/Attaka
South Natuna Sea Block ‘B’Berau (Tangguh)
Masela (Abadi)*
Bayu-Undan
WA-10-L (Griffin Fields)
WA-285-P (Ichthys)*
North Caspian Sea(Kashagan, etc.)
ACG
Umm Shaif/Lower Zakum/
Upper Zakum
Azadegan*Country or Region

Contract TypeIndonesia
Indonesia
Indonesia
Indonesia
JPDA
Australia
Australia
Kazakhstan

PS Contract
PS Contract
PS Contract
PS Contract
PS Contract
Concession Agreement
Concession Agreement
PS Contract

Azerbaijan
UAE

PS Contract
Concession Agreement

Iran

Service Contract

Note: * INPEX group is the operator

7

Production Sharing Contracts

Cost Recovery Portion

Host Country Profit Oil

Host Country
Share

Contractor
Profit OilContractor
Share

1. Cost Recovery Portion Non-capital expenditures incurredfor production and recovered
during the current period
 Scheduled depreciation of thecapital expenditures for the current
period and recovered during thecurrent period Recoverable costs that have notbeen recovered in the previousperiods
2. Equity Portion (Profit Oil)

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

Contractor Take8

Accounting on Production Sharing Contract
Cash Out

Assets on Balance Sheet

Income Statement

Project under exploration phase
Exploration Expenditures

Recoverable accounts under
production sharing
Project under development andproduction phase

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

Exploration anddevelopment rights
Project under exploration phase

Provision for allowance forrecoverable accounts underproduction sharing

Cost of sales Recovery of recoverable
accounts under production
sharing (Capital expenditures)
Cost of sales Recovery of recoverable
accounts under production
sharing (Non-Capitalexpenditures)
SG&A Depreciation and amortization
Other Expenses
 Amortization of explorationand development rights

9Accounting on Concession Agreement
Cash Out

Assets on Balance Sheet

Income Statement

All exploration costs are
expensed as incurredExploration Expenditures

Development Expenditures

Production Costs(Operating expenses)

Acquisition Costs

Exploration expenses

Tangible Fixed Assets

All production costs areexpensed as incurred

Mining Rights

Cost of sales(Depreciation and amortization)

Cost of sales(Operating expenses)

Cost of sales(Depreciation and amortization)

10Change in Fiscal Regime of JODCO The government of the United Arab Emirates has decided
that the fiscal regime for tax rates, royalty rates anddepreciation periods applicable to the Upper Zakum field
will be changed from January 2004.
 A fixed margin regime will be applied from January 2006.
 The change to a fixed margin regime have no impact on netsales, but net income decline.
 The Umm Shaif and Lower Zakum fields have been applied
for a fixed margin since JODCO participated.
 Net sales and net income changes in relation to crude oil
prices on the Umm Al-Dalhk and Satah fields where a fixedmargin is not applied.
11

Geographical Area for the Key Assets

North Caspian Sea Field(Kashagan, etc)
ACG Field

ADMA Field(Umm Shaif /Upper Zakum /Lower Zakum,etc.)

Sakhalin 1*Mahakam /Attaka Unit

South Natuna Sea
Block ‘B’ Field

Berau(Tangguh Unit)

Azadegan Field
Abu Al Bukhoosh
Field (ABK)

WA-10-L Field（Griffin Fields）
WA-285-P Field(Ichthys)
Producing

Development

Offshore
Northwest Java
Offshore Southeast
Sumatra
JPDA03-12(Bayu Undan Unit)

Masela(Abadi)
North
Campos,Frade
Albacora

Under discussion for Development（Discovered）

Note: *Currently under discussion on the acquisition of METI holding shares of SODECO12INPEX Group Key Investments
Field / Project NameCountry

INPEX
Ownership

INPEX

MahakamIndonesia―Producing

INPEX Natuna

South Natuna Block ‘B‘Indonesia

100%

Producing

MI Berau B.V.

Berau (Tangguh LNG Project)

Indonesia

44%

Development

INPEX Masela

Masela (Abadi)*Indonesia

50%

Under Discussion
for Development

INPEX Sahul

Bayu-Undan

JPDA

100%

Producing

INPEX Browse

WA-285-P (Ichthys)*

Australia

100%

Under Discussion
for Development

JODCO

Umm Shaif / Upper Zakum /Lower Zakum

UAE

100%

Producing

Azadegan

Azadegan*

Iran

100%

Development

INPEX Southwest Caspian Sea

ACG

Azerbaijan

51%

Producing

INPEX North Caspian Sea

Kashagan

Kazakhstan

45%

Development

CompanyStage

Asia / OceaniaThe Middle East

The Caspian Sea / Other

Note: *INPEX group is the operator

13Mahakam INPEX INPEX’s Working Interest: 50.0%

Bontang LNG/LPG Plant
East Kalimantan Block Production*− Crude Oil: Approximately 64,000
bbl/d− Gas: Approximately 2.6 billion cf/d

Attaka Unit
Santan Terminal
Attaka Field

Badak Unit

 PSC: Until 2017

Badak Field

Saliki Block

Nilam Unit
Nilam Field
Tambora Field
Peciko Field

TunuField

Handil Field

Tengah Block
Sisi-Nubi Unit
Sisi Field
Nubi Field

Senipah Terminal
Bekapa FieldBalikpapan

Makassar Strait

Offshore Mahakam BlockGas field
Oil field

 Continue development activities tostabilize the supply of gas to Bontang LNG
plant− Gradual development of Tunu / Peciko
field− Additional development of Tambora
field− Development of Sisi-Nubi Unit

Oil and gas field

Note: * Based on all blocks; average daily volume 4/2005 – 6/2005

14

South Natuna Sea Block ‘B’Ma INPEX’s Working Interest: 35.0%

sialaysiaone
IndSouth Natuna Sea Block BKerisi
West BelutBelanakBintang LautSembilangMalongKijingOil Field Production*:− Crude Oil: Approximately
54,000 bbl/d− Gas: Approximately 360 million
cf/d PSC: Until 2028

North Belut
South BelutBawal
Belida Buntal Tembang
Keongsialay
MaianesIndo

Natuna Sea

Hiu

INPEX Natuna, Ltd.

Natuna Island

Anambas Islands

Gas Field
Oil and Gas Field Signed a gas sales contract for 22years from 2001 with SembCorp(Singapore) and for 20 years from2002 with Petronas (Malaysia)
 Belanak commenced production in
2004/12
 Planned to produce sequentially in
Hiu (2006), Kerisi (2007)

Note: * Based on all blocks; average daily volume 4/2005 – 6/2005

15

Berau (Tangguh LNG Project) MI Berau B.V.
Papua Province(Indonesia)

Wiriagar Block

MI Berau: JV with Mitsubishi Corporation



MI Berau’s Working Interest:− Berau: 22.9%（Tangguh Unit: 16.3%）

Muturi Block

PSC: Until 2035

Development plan and extension of the PS
contract were approved by Indonesian
governmentLNG plant is scheduled to commence
production in the last half of 2008
− Scheduled to produce 7.6 million tons of
LNG per year

Berau Block− Signed long-term LNG sales contract forFujian
Kaimana− Signed LNG sales contract with POSCO
and K-Power Company of Korea− Entered into LNG sales contract withSempra Energy of the USA16

Masela (Abadi)

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

Masela Block
Inia
dones

ali
Austr

Timor Sea
JPDA

Timor Seaa

− 10 years exploration period(until 2008)− 30 years development/production period (until 2028)
 Discovered gas in Abadi-1
exploration well in 2000
 Confirmed the extension of gas inthe Abadi structure by 2 appraisal
wells in 2002
 Plan to drill 4 appraisal wells in2006

17

Bayu-Undan INPEX Sahul, Ltd.
East Timor
Timor Sea

 INPEX’s Working Interest: 10.53%
 Production*:

JPDA03-01 Block− Oil / Condensate: Approximately
39,000 bbl/d

Timor Sea
JPDA PSC: Until 2022

Underw

 Carrying out phase 1 development for
production of condensate and LPG

ater Gas Pipeline

JPDA03-12 BlockDarwinÎAustralia0− LPG: Approximately 16,000 bbl/dBayu-Undan
Gas/Condensate Field− Production of condensate and LPG
started in February and April 2004
respectively
 Phase 2 development is for LNG(starting in 2006)− Entered into LNG Sales Contract
with TEPCO and Tokyo Gas(3 million tons per year for 17 years)

50 km

Note: * All field base in JPDA03-12 including Elang Kakatua ; average daily volume 4/2005 – 6/2005

18

WA-285-P (Ichthys) INPEX Browse, Ltd.
 INPEX’s Working Interest: 100.0%
 Operator: INPEX Concession Contract:
PAPUA NEWGUINEA− Exploration Period until September 2009
− Production Period for 21 years from the
grant of the production license

WA-285-P (Ichthys)

AUSTRALIA Discovered major gas-condensate field,named Ichthys structure, during the firstdrilling program of three exploration wells
conducted from 2000 to 2001
 Confirmed continuous distribution of gas andcondensate throughout the Ichthys structureby the second drilling program of threeexploration wells conducted from 2003 to 2004
 Pursuing commencement of gas production
targeting at early period from 201019

ACG INPEX Southwest Caspian Sea, Ltd.

50km

The Caspian sea

Azerbaijan

ACGACG

Baku

ACG
Deepwater portionof the Gunashili
ChiragKazakhstan

INPEX’s Working Interest: 10.0%

Production*: Approximately 244,000 bbl/d

PSC: Until 2024

Carrying out an early stage oil production in theChirag oil field and starting oil production inthe Central Azeri area in February 2005 (Phase1)

BTC pipeline is scheduled to be completed in2005

Planning to increase production level to 1
million barrels per day in stages

AzeriRussia
The Aral Sea
Uzbekistan
The Caspian Sea

Georgia

Armenia

Azerbaijan
Turkmenistan

Iran

500km

− In Phase 2 (West and East Azeri
development), production is scheduled tostart in 2006
− In Phase 3 (deepwater portion of Gunashli/ West Chirag) , production is scheduled tostart in 2008

Note: * Based on all blocks; average daily volume 4/2005 – 6/2005

20

Kashagan, etc.

INPEX North Caspian Sea Ltd.

Offshore North Caspian Sea Block INPEX’s Working Interest: 8.33%
 PSC: Until the end of 2021

Kashagan Structure Discovered crude oil in the Kashagan inJune 2000, then confirmed crude oil / gasin 7 additional exploratory wells by April
2004

Kairan Structure

Caspian Sea

KashaganSouthwest Structure In addition to the Kashagan structure,
existence of hydrocarbon was confirmedin the Kalamkas, Aktote, Kairan andSouthwest Kashagan structures

Aktote Structure

RussiaKazakhstan

Kalamkas Structure

TurkeyChina
IranIndia

 Kashagan development plan wasapproved by the Kazakhstan government
in February 2004
− Scheduled to start production of75,000 bbl/d in 2008, then increase theproduction level to 1.2 million bbl/din phases by expanding thedevelopment area21

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

BTC Pipeline

ARMENIACaspian
SeaBaku

AZERBAIJAN
TURKEYCeyhanIRANSYRIACYPRUS

Mediterranean
Sea

IRAQ

 Obtained stock of the operatingcompany (BTC Co.) through INPEXBTC Pipeline, Ltd. in October 2002
 Participated to secure path for crude
oil produced in Caspian Sea in future Signed project finance contract toraise capital for the construction ofthe pipeline in February 2004
− Currently in construction of thepipeline− The pipeline is scheduled to start
operation in December 2005

22

ADMA Japan Oil Development Co., Ltd. (JODCO)

Production Oil Field
Underwater pipeline

ADMA BlockUmm Shaif Oil Field
Das Island

Lower/Upper ZakumOil Field

Satah Oil Field
Zirku Island

Umm Al-Dalkh Oil Field

Abu Dhabi Umm Shaif / Lower Zakum− INPEX’s Working Interest:
12.0%
 Upper Zakum / Umm Al-Dalkh /Satah− INPEX’s Working Interest:
Upper Zakum / Umm Al-Dalkh:
12.0%− Satah: 40.0%
 Concession Contract: Until 2018
 Continuous development to keep theproduction level− Water injections to the main
three oil fields (Umm Shaif,Upper / Lower Zakum) havestarted− Gas injection to Umm Shaif field
has started
23

Azadegan INPEX’s Working Interest: 75.0%
 Target Production*: 150,000 bbl/d(Phase 1)

Tehran Joined as the operator
BaghdadAzadegan Oil Field
IraqAhwaz

Kuwait Service Contract (Buyback Contract) Two Phase Oil Field Development
Project−In phase 1, planned to reach 150
thousand barrels per day in 2008-09

Iran100km−If we decide to move onto phase 2,planned to reach 260,000 bbl/d withadditional 110,000 bbl/d in 2012-13

Note: * Based on all blocks; projections at current point in time24

Project-Sakhalin I Sakhalin Oil and Gas Development Co.
0510Sakhalin Oil and Gas Development Co.
（SODECO）:
INPEX owns 4.3% of the total share(INPEX is in the process to purchase tomaximum 33% of the SODECO’s share from theMinistry of Economy, Trade and Industry
which has inherited a 50% of the SODECO’s
shares from JNOC)SODECO’s Working Interest

Kilometers

Gas Field
Oil Field

OdoptoStructure− Sakhalin I: 30.0%

Sakhalin
IslandVal

ChaivoStructure Arktun-DaginskoyeOperator: ExxonMobil

Partners: ONGC Videsh, SakhalinmorneftegasShelf, RN-Astra

PSC: In Dec. 2001, “CommercializedDeclaration” of the project was authorized by
Russian government and the project moved intodevelopment phase for twenty years

Commenced production in 10/2005; full-scale
production expected in 2006 (Phase 1)

Performing marketing activity assuming natural
gas supply to Japanese, Chinese, and othermarkets through international pipeline (Phase2)

Structure25

Crude Oil Prices($/bbl)

6555
45
35
25
A pr

May

JunJul

A ug

2004

Sep

Oc tNov

Dec

Averagethrough 1Hof FY2005

Feb2005

Brent
FY2005JanWTIMarA prMayJunJulA ug

SepDubai

FY2006

AveragethroughFY2005

AprMayJunJulAug

Sep

Averagethrough 1H ofFY2006

Brent

39.97

42.14

53.31

49.67

55.42

57.95

63.80

63.80

57.32

WTI

41.10

45.07

53.22

49.87

56.42

59.03

64.99

65.55

58.18

Dubai

34.77

36.57

47.20

45.40

51.08

52.83

56.60

56.54

51.61

*Brent is from IPE, WTI is from NYMEX and Dubai is from Platt’s

26