Appendix : Additional Slides

1Highlights of Non-Consolidated Financial
Results for FY2005(Billions of yen)

% ofchange

FY2004

FY2005

ChangeNet sales

168.2

202.7

34.4

20.5%

Operating income

92.6

113.5

20.9

22.6%

Ordinary income

76.2

112.5

36.3

47.7%

Net income

28.3

50.7

22.4

79.1%

*15,986.65

26,717.47

10,730.82

67.1%

5.8

7.6

1.7

30.3%

*3,3334,000667

20.0%

Net income per share (¥)
Cash dividends paid
Dividends per share (¥)

Note: * Adjusted for a three for one stock split in May 20042

Overview of Consolidated Balance Sheets(Millions of Yen)
Total： 779,227

30%

23%

Total： 525,298
20%
Total： 338,747

46%

14%
11%

54%

75%

11%

24%

32%
9%
6%

0%

4%
70%

76%

53%
53%

FY2003
Cash and Deposits*+Marketable Securities**
Notes: ***Other AssetFY2004
Total Debt

Other Liabilities

FY2005
Minority Interests

Including collateralized fixed-term deposit of JPY 9,140 million for FY2004 and of JPY 8,200 millions for FY2005
Government bonds, government agency bonds and corporate bonds (with market value)

Shareholders’ Equity

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

140,000

125,996

120,000
100,000
76,01480,00061,81860,00040,00020,0000
FY2003
Note: *FY2004

FY2005Net Income + Minority Interests + Deferred Tax + (1 – Tax Rate) x (Interest Expense – Interest Income) + (Depreciation andAmortization + 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 +Exchange Profit and Loss. Our EBIDAX measures may not be comparable to other similarly titled measures of other companies

4

Details of EBIDAX Calculation for FY2005(Millions of Yen)

INPEX

SourceNet income

76,493

P/L(468)

P/L

Minority interests

Notes

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

51,335
12,96038,375C/F Depreciation under concession agreements and G&A
C/F Depreciation under PS contracts

Exploration cost equivalent amount
Exploration expenses
Provision for allowance forrecoverable accounts underproduction sharing

2,991
2,473
518

P/L Exploration expense under concession agreements
P/L Exploration expense under PS contracts

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

(5,272)(4,798)
(474)

P/L
C/F

Amortization of exploration andDevelopment rights

1,606

P/L Cash expense for acquisitions of assets underexploration phase

Net interest expenses (income), after tax(689)

P/L After-tax interest expense minus interest income

EBIDAX

125,9965

Exploration and Development Investments in FY2006
Exploration Expenditures

Development Expenditures Asia / Oceania
 Middle East Caspian sea / Other

2.4

48.2
76.110.1

24.6

Exploration Expenditures: 12.6
(Billions of yen)
Development Expenditures: 149.0(Billions of yen)6

Estimate of Exploration Cost Equivalent Amount(Billions of yen)



21.6
20


10.0
15

9.1

105

5.2

11.50
F2004

2.9
0.5
2.4

3.8

F2005

F2006E

Provision for allowance for recoverable accounts
under production sharing (PS contract)
Exploration expenses (concession agreement)

The bar chart shows expensed portion oftotal exploration expenditures(“Exploration cost equivalent amount”)
Exploration cost equivalent amount in
FY2004 were mainly consist of exploratory
drilling costs at the WA-285-P (Ichthys)
Block in Australia (exploration expenses)
and exploration cost in the North CaspianSea region (provision for allowance forrecoverable accounts under productionsharing)
Exploration cost equivalent amountdeclined sharply in FY2005 because there
was no exploratory drilling activity as an
operation in the WA-285-P (Ichthys) andMasela, and additional provision forallowance was not required since a
development plan was approved by theKazakhstan government
Estimate of exploration cost equivalentamount in FY2006 will increase sharplyyear-over-year due to the scheduleddrilling activity at the Masela Block
7

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
UAEPS Contract
Concession Agreement

Iran

Service Contract

Note: * INPEX group is the operator

8Production Sharing Contracts

Cost Recovery Portion

Host Country Profit Oil

Host Country
ShareContractor
Profit Oil

Contractor
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 previous
periods
2. Equity Portion (Profit Oil)

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

Contractor Take9Accounting on Production Sharing ContractCash Out

Assets on Balance Sheet

Income Statement

Project under exploration phase
Exploration Expenditures

Recoverable accounts under
production sharing
Project under development andproduction phase

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

Exploration anddevelopment rights
Project under exploration phase

Provision for allowance forrecoverable accounts under
production sharing

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

10Accounting on Concession Agreement
Cash Out

Assets on Balance Sheet

Income Statement

All exploration costs are
expensed as incurred
Exploration Expenditures

Development Expenditures

Production Costs(Operating expenses)

Acquisition Costs

Exploration expenses

Tangible Fixed Assets

All production costs are
expensed as incurred

Mining Rights

Cost of sales(Depreciation and amortization)

Cost of sales(Operating expenses)

Cost of sales(Depreciation and amortization)

11

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.
12Geographical Area for the Key Assets

North Caspian Sea Field(Kashagan, etc)
ADMA Field(Umm Shaif /Upper Zakum /Lower Zakum,etc.)

ACG Field

Sakhalin 1*

Mahakam /Attaka Unit

South Natuna Sea
Block ‘B’ Field

Berau(Tangguh Unit)

Azadegan Field
Abu Al Bukhoosh
Field (ABK)Offshore
Northwest Java
WA-10-L Field（Griffin Fields）
WA-285-P Field(Ichthys)
ProducingDevelopment

Offshore Southeast
SumatraMasela(Abadi)
NorthCampos,Frade

JPDA03-12
Albacora(Bayu Undan Unit)
Under discussion for Development（Discovered）

Note: *Currently under discussion on the acquisition of JNOC holding shares of SODECO13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

JODCOUmm Shaif / Upper Zakum /Lower Zakum

UAE100%Producing

Azadegan

Azadegan*

Iran

100%

Development

INPEX Southwest Caspian Sea ACG

Azerbaijan

51%

Producing

INPEX North Caspian Sea

Kazakhstan

45%

Development

CompanyStage

Asia / Oceania

The Middle East

The Caspian Sea / Other

Note: *INPEX group is the operator

Kashagan14

Mahakam

INPEX Our Working Interest: 50%
 Production*

Bontang LNG/LPG plant
East Kalimantan Block⎯ Gas: Approximately 2.7 Bscfd

Attaka Unit
Santan Terminal
Badak Unit

Attaka Field

 Contract Period: Until 2017

Badak Field

Saliki Block

Nilam Unit
Nilam Field
Tambora Field Tunu Field
Peciko Field

Tengah Block
Sisi Nubi Unit

Handil Field

Sisi Field
Nubi Field

Senipah Terminal⎯ Crude Oil: Approximately 65,000
BOPD

 Continue development activities tostabilize the supply of gas to Bontang
LNG plant⎯ Gradual development of Tunu /Peciko fieldBekapa Field

Balikpapan

Offshore Mahakam Block⎯ Additional development ofTambora field

Gas Field
Oil Field

Makassar Strait

Oil and Gas Field

Note:* All field base and average of March 2005

⎯ Development of Sisi-Nubi Unit15

South Natuna Sea Block ‘B’ INPEX Our Working Interest: 35.0%sia
lay
MasiaoneInd Production*:South Natuna Sea Block ‘B’sia
lay
MaianesIndo

Natuna Sea⎯

Crude Oil: Approximately 54,000
BOPD⎯

Gas: Approximately 380MMscfd

 Contract period: Until 2028
North Beult

Hiu

South Beult
Bawal
Belida Buntal Tembang
Keong
Sembilang
MalongKijingKerisiWest Belut
BelanakB.LautNatuna Island

Oil Field

Anambus 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 in2004/12 Planned to produce sequentially inHiu (2006), Kerisi (2007)

Note:* All field base and average of March 2005

16

Berau (Tangguh LNG Project) MI Berau: JV with Mitsubishi Corporation

Papua Province(Indonesia)

Wiriagar

MI Berau B.V.

 MI Berau’s Working Interest:Muturi⎯

Berau: 22.9%（Tangguh Unit: 16.3%）

 Contract Period: 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 tonsof LNG per year⎯

Signed long-term LNG sales contractfor Fujian⎯

Signed LNG sales contract withPOSCO and K-Power Company ofKorea⎯

Reached an agreement for sales of
LNG with Sempra Energy of the USA

BerauKaimana

17

Masela (Abadi) INPEX Masela
 Our Working Interest: 100.0%
 Operator: INPEX
MaselaMasela Contract Period:
Inia
dones

ali
AustrJPDA

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 twoappraisal wells in 2002
 Additional drilling of appraisal
wells are planned

18Bayu・Undan INPEX Our Working Interest: 10.53%
East Timor
Timor Sea

 Production*:⎯Oil / Condensate: Approximately
67,000 BOPD⎯

LPG: Approximately 29,000 BPD

JPDA

JPDA03-01

Bayu Undan
gas-condensate Field
Submarine
Gas Pi pi

 Contract Period: Until 2022
 Carrying out phase 1 development forproduction of condensate and LPG⎯lene

JPDA03-12DarwinÎProduction of condensate andLPG started in February andApril 2004 respectively

 Phase 2 development is for LNG(starting in 2006)⎯Reached agreement with TEPCO
and Tokyo Gas for a long term
sale of LNG (3 million tons peryear for 17 years)

Australia
050 kmNote: * All field base in JPDA03-12 including Elang Kakatua. Average of March 200519

WA-285-P (Ichthys) INPEX Browse
 Our Working Interest: 100.0%
 Operator: INPEX Contract Period:
PAPUA NEWGUINEA⎯ Exploration Period until September 2009
⎯ Production Period for 21 years from thegrant of the production license

WAWA-285285-P (Ichthys(Ichthys))

AUSTRALIA

Ichthys gas and condensate field 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
and condensate throughout the Ichthys
structure by the second drilling program ofthree exploration wells conducted from2003 to 2004
 Pursuing commencement of gas production
targeting at early period from 201020

ACG INPEX Southwest Caspian

50km

The Caspian sea

Azerbaijan

ACGACGBaku

Our Working Interest: 10.0%

Production*: Approximately 214,000 BOPD



Contract Period: Until 2024

Carrying out an early stage oil production inthe Chirag oil field⎯

Deepwater portionof the Gunashili
ChiragKazakhstan
AzeriRussia
The Aral Sea

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

In Phase 1 (Central Azeri area
development), production is scheduled
to start sequentially in February 2005⎯

In Phase 2 (West and East Azeri
development), production is scheduled
to start in 2006⎯

Phase 3 (deepwater portion of Gunashli /West Chirag) , production is scheduled
to start in 2008

Uzbekistan
The Caspian Sea

Georgia

Armenia

Azerbaijan
Turkmenistan

Iran500km

Note: * All field base and average of March 2005

BTC pipeline is scheduled to becompleted in 2005

21

Kashagan, etc. INPEX North Caspian Our Working Interest: 8.33%

Offshore
OffshoreNorth
NorthCaspian
CaspianSea
SeaBlock
Block

Kashagan Structure

Kairan Structure Discovered crude oil in the Kashagan inJune 2000, then confirmed crude oil /gas in 7 additional exploratory wells byApril 2004

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

The Caspian Sea

Southwest Kashagan
Structure Kashagan development plan wasapproved by the Kazakhstan
government in February 2004

RussiaKazakhstan
Kamlamkas
Structure Contract Period: Until the end of 2021

TurkeyChina
IranIndia⎯

Scheduled to start production of 75
thousand barrels per day in 2008,
then increase the production levelto 1.2 million barrels per day inphases by expanding thedevelopment area22

BTC（BakuTbilisiCeyhan）Pipeline Project INPEX BTC Pipeline, Ltd.
 Our Working Interest: 2.5%RUSSIA

TheBlackSea

GEORGIA

Tbilisi

BTC Pipeline

ARMENIA

TheCaspian
Sea

Baku

AZERBAIJAN
TURKEY

CeyhanIRAN

SYRIA
CYPRUS

The
Mediterranean
Sea

IRAQ

 Obtained stock of the operatingcompany (BTC Co.) through
INPEX BTC Pipeline, Ltd. in
October 2002
 Participated to secure path for
crude oil produced in CaspianSea in future Signed project finance contract
to raise capital for theconstruction of the pipeline inFebruary 2004
⎯ Currently in construction ofthe pipeline⎯ The pipeline is scheduled tostart operation in 2H 2005
23

ADMAJODCO Umm Shaif / Lower Zakum⎯
Producing Field
Submarine Pipeline

ADMAADMA Upper Zakum / Umm Al-Dalkh / Satah⎯

Umm Shaif
Upper Zakum,Lower Zakum

 Continuous development to keep theproduction level

Zirku Island

Umm Al-Dalkh

Our Working Interest:
Upper Zakum / Umm Al-Dalkh:
12.0%
Satah: 40%

 Contract Period: Until 2018

Das Island

Satah

Our Working Interest: 12.0%⎯Water injections to the main threeoil fields (Umm Shaif, Upper /Lower Zakum) have started⎯

Gas injection to Umm Shaif field
has started

Abu Dhabi24Azadegan Our Working Interest: 75.0%
 Production*: 150,000 BOPD
(Phase 1)

Tehran Joined as the operator

BaghdadAzadegan
Azadegan
Iraq⎯ In phase 1, planned to reach
150 thousand barrels per dayin 2008

Ahwaz

KuwaitIran
100km

Note: All field base

 Two Phase Oil Field DevelopmentProject⎯ If we decide to move onto
phase 2, planned to reach 260
thousand barrels per day withadditional 110 thousandbarrels per day in 201225

Project-Sakhalin I Sakhalin Oil and Gas Development Co.
05



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’sshares from JNOC)SODECO’s Working Interest

10km-Gas Field-Oil Field

OdoptuStructure

ValChayuo
Structure
Arkutun Dagi Structure⎯

Sakhalin I: 30.0%Operator: ExxonMobil

Partners: ONGC Videsh, SakhalinmorneftegasShelf, RN-AstraContract Period: In Dec. 2001, “CommercializedDeclaration” of the project was authorized byRussian government and the project moved
into development phase for twenty years

Carrying out the first development phase(Phase 1), which is aimed at an early stage oilproduction. Scheduled to start the production
in 3Q 2005 and start the full production in 2006

Marketing in the works under the assumptionthat natural gas would be supplied to Japanand China, etc. through the international
pipeline

26

Factor Analysis of Change in Proved Reserves（MMBOE）
2,000
133

1,800
1,600(101)1,400( 120)

1,200
1,000800

1,634

1,545600
4002000End ofFY2004
Pro Forma*
Notes: ***Expansion andDiscovery**Impact ofChange in
Oil Prices

Assumes JODCO became fully-owned subsidiary of INPEX in FY2004
Includes acquisition and sales, and revision to technology assessment

Production
in FY2005

End ofFY2005

27

Crude Oil Prices
($)
55
50
45
40
3530
25
Apr

May

Jun

Jul

Aug

Sep

Brent

Oct
WTI

Nov

Dec

JanFeb

Mar

Dubai

2004

2005

AprMay

Jun

Jul

Aug

Sep

Oct

Nov

Dec

JanFebMar

Average

Brent

32.98

37.20

35.50

37.64

41.75

42.79

49.34

44.57

40.28

44.48

45.86

53.27

42.14

WTI

36.56

40.28

37.99

40.81

44.88

45.94

53.09

48.48

43.26

46.85

48.05

54.63

45.07

Dubai

31.68

34.74

33.43

34.65

38.55

35.55

37.54

34.87

34.20

37.92

39.87

45.84

36.57

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

28

Definition of Proved Reserves Our definition of proved reserves is in accordance with the SEC
Regulation S-X, Rule 4-10, which defines proved reserves as theestimated quantities of oil/gas which can be recovered with reasonablecertainty in future years under current economic and operational
conditions based on geographical and engineering data To be classified as a proved reserve, the SEC rule requires a market
and means of economical production/processing/shipping to exist
already or to become available in near future. Thus, this definition isknown to be the most conservative among the various definitions ofreserves used in the oil and gas industry
 The SEC rule separates proved reserves into two categories; proved
developed reserves which can be recovered by existing wells andinfrastructure, and proved undeveloped reserves which require future
development of wells and infrastructure to be recovered29

Definition of Probable Reserves
 Probable reserves, which term is defined by SPE/WPC, are those
unproved reserves which analysis of geological and engineering datasuggests are more likely than not to be recoverable
 In this context, when probabilistic methods are used, there should be atleast a 50% probability that the quantities actually recovered will equalor exceed the sum of estimated proved plus probable reserves
 The difference from the definition of proved reserves based on the SEC
rule is whether oil/gas can be recovered with high certainty. Probablereserves will be upgraded to proved reserves with addition of newtechnical data, under different economical conditions, and with advancein operational conditions

30