Note: The following report is an English translation of the Japanese-language original.

Financial Results
for the Six Months Ended September 30, 2018
November 12 , 2018

Japan Petroleum Exploration Co .,Ltd.

Cautionary Statement
This document contains future prospects such as plans, forecasts, strategies, and others which are
not historical fact and forward-looking statements about the future performance of JAPEX. Actual
results may significantly differ from those future prospects due to various factors.
This document is not intended to invite investment.
Copyright : All information contained herein is protected by copyright, and may not be copied or
reproduced without prior consent of JAPEX.

Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/19, for instance, means 12 months ending March 31, 2019)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:Investor Relations Group, Media & Investor Relations Dept.
Japan Petroleum Exploration Co., Ltd.
Tokyo, JAPANTEL: +81-3-6268-7111

2

Contents

Ⅰ. Business Overview
Hideichi Okada, Representative Director and President

Ⅱ. Actual Results for the Six Months Ended
September 30, 2018
Michiro Yamashita, Director Managing Executive Officer

Ⅲ. Forecasts for the FY3/19
Michiro Yamashita, Director Managing Executive Officer3

Ⅰ. Business Overview
Hideichi Okada
Representative Director and President

4Long-term Vision and Mid-term Business Plan
Corporate profit* composition

Long-term Vision 2030

“Growth to the Integrated Energy
Company Utilizing Our Oil and Gas E&P
and Its Supply Basis”

2030 Ratio

The profit composition JAPEX aims for in 2030
E&P Business : Non-E&P Business = 6：4

Mid-term Business Plan 2018-2022
Achieve ROE=>5% level with the assumptionof crude oil prices of USD60/bbl*Operating profit + Equity method investment income/loss basis

Mid-Term Targets
E&P BusinessLong-Term Targets
Maintain “RRR* >1”*RRR: Reserve Replacement Ratio

Infrastructure &Utility Business
Targets to 2022

New Business
Development

Business generation by
Natural gas sales volume in Japan the new business model
1.6 million tons (LNG equivalent) utilizing our competitive
Electricity sales volume
and advance resources
2.8 billion kWh5Trends in Crude Oil Price and Foreign Exchange Rate
JPY/USD¥115

USD/bbl$90
Crude Oil Price USD/bbl
Exchange Rate JPY/USD
$80

¥110

$70

$60

2018-092018-082018-072018-06

2018-05

2018-04

2018-032018-022018-012017-122017-112017-10¥105
2017-09$50

Assumption of crude oil price and exchange rate in the second half of FY3/19

USD 75.00/bbl JPY 110.00/USD
6

E&P Business
Main Project
Hokkaido: Oil Development of a Shallow
Reservoir of Yufutsu Oil and Gas Field

Iraq: Garraf ProjectIndonesia: Kangean Project

Canada: Shale Gas Project

Under development to increase of oil production volume
for 230,000 bbl/d

Under development toward gas productioncommencement in FY2020

Producing and marketing shale gas
Executing the development plan prioritizing the areawith high economics



7

Under development of the Sirasun and Batur Gas Fields
towards gas production commencement in 2Q 2019

E&P Business
Canada: Oil Sands Project Production operation: Good and stable bitumen production••

Transitioned to stable operations of 20,000 bbl/d level bitumen production in June 2018
Expecting good potential of the oil sands layer for bitumen production

 Sales of diluted bitumen: Severe condition of business surroundings••

Shortage of the pipeline transportation capacity to the United States
Widen the price differential of Western Canadian Select (WCS)* to WTI*a price index for west Canadian heavy oil→ Aiming to improve business balance by optimization of the production
and additional investment plan as well as cost reduction
Trend in WTI and WCS (September 2017 – September 2018)
USD/bbl 80.00

WTI

70.00

WCS

60.00
50.00
40.00
30.00

△Central processing facility in the Hangingstone Leases

8Infrastructure & Utility Business
Domestic Natural Gas Supply

Power Generation and Sales Develop new clients for increasing
domestic gas sales Received 4 LNG cargoes at the Soma LNG
Terminal including the commissioning
cargo.

 Natural Gas-Fired Power Generation
Project at Soma Port••

Under construction of Fukushima Natural Gas
Power Plant by Fukushima Gas Power Co.,
Ltd. (JAPEX’s share: 33%)
Continuing sales activities of electricity
toward the commercial operationcommencement of the power plant in 2020

 Organization Change of Soma Project
Division••△Soma LNG Terminal and Fukushima Natural Gas Power
Plant as of October, 2018

9

Changed to Soma Project & Power Business
Division on October 1, 2018.
Responsible for promoting new electricity
business development including renewableenergy in addition of electricity sales.

New Business Development
Accumulation of Technology through Commissioned Research CCS (Carbon Dioxide Capture and Storage)
 Methane hydrate Next-generation technology for ocean resources exploration

Identification of Business Seeds
 LNG overseas rail transport
 LNG bunkering CO2-EOR
 Preparation of new organization for new business development

10Transformation into a Lean and Resilient Corporation

Portfolio optimization
including sales of assets

Proactive cost reduction

Transformation into a
Lean and Resilient
Corporation

11

Ⅱ. Actual Results

for the Six Months Ended September 30, 2018

Michiro Yamashita
Director Managing Executive Officer

12Actual results

Actual Sales of Natural Gas in 2Q FY3/19 ( year-on-year )FY3/182Q (a)

Sales volume : Million M3
Net sales : Million JPY

FY3/192Q (a)

ChangeSales volume

833

813

(20)

Net sales

26,83927,835

+995

Japan

Sales volume

569

548

(20)

Gas produced in Japan

Sales volume

344

287

(56)

Overseas

Sales volume

264

264

0

Natural gas

Increase in sales priceSales volume by region

Million M3

900

600

300

-

Sales volume ofoverseas gas

264

569

264

Sales volume ofgas in Japan

Temporary demand reduction due to theclient’s reason

548
Sales volume of “Overseas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

2Q FY3/18(a)2Q FY3/19(a)13Actual results

Actual Sales of Crude Oil in 2Q FY3/19 ( year-on-year )FY3/182Q(a)FY3/192Q(a)Sales volume

1,548

1,278

(269)

Net sales

53,08654,305+1,219

Sales volume

146

131

(15)

Net sales

5,713

6,927

+1,213

Sales volume

809

185

(624)

Net sales

25,604

9,298(16,306)

Sales volume

-

496

+496

Net sales-

13,257+13,257

Sales volume : Thousand KL
Net sales : Million JPY
Crude oil

ChangeIncrease in sales price

Equity oil sales
Crude oil produced inJapan (*)
Crude oil produced inoverseas (**)
Diluted bitumen(***)

Oil price and exchange rate assumptions
JCC

USD/bbl

52.44

72.47

+20.03

Diluted bitumen (***)

USD/bbl

-

38.37

-

Exchange rate

JPY/USD

111.79109.18(2.61)

14

Decrease in crude oil sales volume ofGarraf Oil Field, Iraq
Commencement of diluted bitumen
sales of the Hangingstone lease in 3Q
of 2017(*) Sales volume and net sales of “Crude oil
produced in Japan” stated herein do not include
purchased crude oil(**) Sales volume and net sales of “Crude oil
produced in overseas” stated herein are amountsof 3 overseas subsidiaries (Japex (U.S.) Corp.,
JAPEX Montney Ltd. and Japex Garraf Ltd.)(***) Royalty is excluded in the net sales andprice of diluted bitumen

Actual Results for 2Q FY3/19 ( year-on-year )[ Million JPY]

FY3/182Q (a)

FY3/192Q (a)

ChangeNet sales

112,382

115,136+2,754Gross profit

17,884

14,126(3,757)

643

362

(280)

13,788

14,946+1,157

Operating profit (loss)

3,452(1,183)(4,635)Non-operating income(expenses)

5,435

2,476

(2,959)Ordinary income

8,888

1,293

(7,594)

(12)

618

+630

1,108

394

(714)

Exploration expenses
SG&A expenses

Extraordinary income(losses)
Income taxes
Profit (loss) attributable tonon-controlling interests

10

(915)

(926)

Profit (loss) attributable toowners of parent

7,756

2,433

(5,322)
15

Actual results

Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit
Domestic business(¥2.6 billion)
Overseas consolidated subsidiaries(¥1.0 billion)
SG & A expenses
Increase in transportation cost at the
Hangingstone lease(¥1.1 billion)

Non-operating income (expenses)
Equity in earnings+ ¥2.1 billion
Foreign currency translation adjustments on debt,
foreign currency exchange gains and losses(FY3/18 2Q)Gains of ¥0.9 billion→ (FY3/19 2Q)Loss of ¥2.9 billion(¥ 3.9 billion)

Increase in interest expenses(¥ 1.1 billion)

Ⅲ. Forecasts for the FY3/19
Michiro Yamashita
Director Managing Executive Officer

16

Revised forecasts

Price Assumptions for Revised Forecasts for FY3/19
2018
2019
Full year
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. Jan.-Mar.
JCC

USD/bblExchange rate JPY/USD
JACOS
Diluted bitumen

JML
Gas

1.
2.

USD/bbl
CAD/mcf

Previous forecasts

67.95
70.00
70.00
70.00
69.50
67.95 76.64 75.00 75.00 73.75
107.42 110.00 110.00 110.00 109.39
107.42 110.61 110.00 110.00 109.60

Revised forecasts
Previous forecasts
Revised forecasts
Previous forecasts
Revised forecasts
Previous forecasts
Revised forecasts

33.48
33.48
2.04
2.04

43.19
43.05
1.35
1.21

39.48
41.16
1.40
1.64

38.04
30.23
1.40
1.90

“JACOS Diluted bitumen” stated herein is the diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty).
“JML Gas” stated herein is the gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

17

38.64
37.59
1.56
1.65

Revised forecasts

Revised Forecasts Natural Gas Sales for FY3/19(vs Previous Forecasts)

FY3/19FY3/19Previous forecasts Full (f)August 8, 2018

Revised forecasts Full (f)November 9, 2018

Sales volume

1,762

1,731

(30)

Net sales

66,604

66,113(490)

Sales volume

1,261

1,231

(30)

Sales volume

632

614

(17)

Sales volume

501

501

0

Sales volume : Million M3
Net sales : Million JPY
Natural gas

ChangeDecrease in sales volume

Sales volume by regionJapan
Gas produced in Japan

Overseas
Million M3

2,000
1,600

Sales volume ofoverseas gas

501

501

1,200
800
400
-

Sales volume ofdomestic gas

1,261

1,231

Previous (f)Revised (f)Reduction in sales to large clients

Sales volume of “Overseas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.

18

Revised Forecasts Crude Oil Sales for FY3/19

Revised forecasts(vs Previous Forecasts)

FY3/19Previous forecasts
Full (f)August 8, 2018

FY3/19
Revised forecasts
Full (f)November 9, 2018

Sales volume

3,310

3,240

(69)

Net sales

133,476

138,320+4,843

Crude oil produced inJapan (*)

Sales volume

258

264

+6

Net sales

12,986

14,093+1,107

Crude oil produced inoverseas (**)

Sales volume

720

528

(191)

Net sales

33,447

26,149(7,297)

Sales volume

1,284

1,183

(100)

Net sales

34,33530,792(3,542)

Sales volume : Thousand KL
Net sales : Million JPY

Crude oil

ChangeIncrease in sales price

Equity oil sales

Diluted bitumen (***)

Decrease in crude oil sales volumeof Garraf Oil Field, Iraq
Decrease in sales volume due toreview of JACOS production plan/
Review sales price

Oil price and exchange rate assumptions
JCC

USD/bbl

69.50

73.75

+4.25

Diluted bitumen (***)

USD/bbl

38.64

37.59

(1.05)

Exchange rate

JPY/USD

109.39109.60+0.21(*) Sales volume and net sales of “Crude oil produced in Japan” stated herein do not include purchased crude oil.
(**) Sales volume and net sales of “Crude oil produced in overseas” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. and Japex
Garraf Ltd.).
(***) Royalty is excluded in the net sales and price of diluted bitumen.

19

Revised forecasts

Revised Forecasts for FY3/19 (vs Previous Forecasts)
Previous forecasts
Full (f)August 8, 2018

Revised forecasts
Full (f)November 9, 2018

Net sales

284,019

288,330+4,310Gross profit

34,08332,089(1,993)

Exploration expenses

1,055

907

(148)

SG&A expenses

30,90230,656(246)

Operating income (loss)

2,125

526

(1,599)Non-operating income(expenses)

7,878

11,864+3,985

Ordinary income

10,003

12,390+2,387Extraordinary income(losses)

660

613

(46)

Income taxes

968

1,454

+486

Profit (loss) attributable tonon-controlling interests(1,311)

(843)

+468

Profit (loss) attributable toowners of parent

11,007

12,393+1,386[Million JPY]

20

ChangeMain factors for change
Increase factor “+” / Decrease factor “( )”Gross profit
Domestic business+ ¥0.2billion
Overseas consolidated subsidiaries(¥2.2billion)

Non-operating income(expenses)
Equity on earnings+ ¥2.4billion
Foreign currency translation
adjustments on debt, foreignexchange gains and losses(Previous) Loss of ¥3.6billion→(Current) Loss of ¥1.9billion+ ¥1.6billion

Revised forecasts

Revised Forecasts Natural Gas Sales for FY3/19(year-on-year)
Sales volume : Million M3
Net sales : Million JPY

Natural gas

FY3/18

FY3/19ChangeFull (a)Revised forecasts Full (f)November 9, 2018

Full

Sales volume

1,773

1,731

(41)

Net sales

60,431

66,113+5,682

Sales volume

1,284

1,231

(54)

Sales volume

739

614

(124)

Sales volume

488

501

+12

Increase in sales priceof gas in Japan

Sales volume by regionJapan
Gas produced in Japan

Overseas
Million M3

2,000
1,600

Sales volume ofoverseas gas

488

501

1,200
800

Sales volume ofgas in Japan

1,284

400
-

1,231

Increase in shale gas sales volume
in Canada・Temporary demand reduction
due to the client’s reason
・Recoil reduction of increase intemporary demand from local
distribution companies inprevious year

Sales volume of “Overseas” stated herein are amounts of Japex (U.S.)
Corp. and JAPEX Montney Ltd., overseas consolidated subsidiaries.
FY3/18(a)FY3/19(f)21Revised forecasts

Revised Forecasts Crude Oil Sales for FY3/19(year-on-year)
Sales volume : Thousand KL
Net sales : Million JPY

FY3/18

FY3/19ChangeFull (a)Revised forecasts
Full (f) November 9,
2018

Full

Sales volume

2,506

3,240

+734

Net sales

93,685

138,320+44,634

Sales volume

291

264

(27)

Net sales

12,265

14,093+1,829Crude oil produced inoverseas (**)

Sales volume

991

528

(464)

Net sales

33,74926,149(7,600)

Diluted bitumen(***)

Sales volume

160

1,183

+1,023

Net sales

4,512

30,792+26,280

Crude oil
Equity oil sales
Crude oil produced inJapan (*)

Oil price and exchange rate assumptions
JCC

USD/bbl

56.20

73.75

+17.55

Diluted bitumen(***)

USD/bbl

39.63

37.59

(2.04)

Exchange rate

JPY/USD

111.67109.60(2.07)

Increase in sales volume,
increase in sales priceDecrease in crude oil sales
volume of Garraf Oil Field, Iraq
Increase in sales volume of theHangingstone lease due to fullyear production andachievement of plateau
production(*)Sales volume and net sales of “Crude oil produced in Japan” stated herein do not include purchased crude oil.
(**)Sales volume and net sales of “Crude oil produced in overseas” stated herein are amounts of 3 overseas subsidiaries (Japex (U.S.) Corp., JAPEX Montney Ltd. andJapex Garraf Ltd.).
(***)Royalty is excluded in the net sales and price of diluted bitumen.

22

Revised Forecasts for FY3/19 (year-on-year)[Million JPY]

FY3/18Full (a)FY3/19
Revised forecasts
Full (f)November 9,
2018

ChangeNet sales

230,629

288,330+57,700

Gross profit

39,26332,089(7,174)

Exploration expenses

1,324

907

(418)

SG&A expenses

29,17330,656+1,482

Operating income(loss)

8,764

526(8,238)(4,936)

11,864+16,800

Non-operating income(expenses)
Ordinary income
Extraordinary income(losses)
Income taxes

3,828

12,390+8,562(73,231)613+73,845

239

1,454

+1,215

Revised forecasts

Main factors for change
Increase factor “+” / Decrease factor “( )”Gross profit
Domestic business (¥6.3 billion)
Overseas consolidated subsidiaries (¥0.8 billion)

SG&A expenses
Increase in transportation cost at the
Hangingstone lease due to full year production(¥2.3 billion)

Non-operating income (expenses)
Equity in earnings of affiliates+ ¥12.9 billion

Foreign currency translation adjustments on debt,
foreign currency exchange gains and losses(FY3/18)Gains of ¥2.7 billion→(FY3/19)Gains of¥1.9 billion(¥4.6 billion)(FY3/18) Decrease in amortization expenses
related to the Hangingstone DEMO area
+ ¥7.8 billion

Extraordinary income (losses)

Profit (loss) attributable
to non-controllinginterests(38,683)(843)+37,841(FY3/18) Impairment loss spikes due to notproceeding LNG Project in Canada + ¥72.9 billion

Profit (loss) attributableto owners of parent(30,958)

12,393+43,352(FY3/19) Gains on sales of real estate+ ¥0.7 billion

23

Assumptions and Impact on Profits [3Q-4Q]
FY3/18Full(a)

Revised forecasts

FY3/19
1Q(a)

2Q(a)

3Q(f)

4Q(f)

Full(f)JCC

USD/bbl

56.20

67.95

76.64

75.00

75.00

73.75

Exchange rate

JPY/USD

111.67107.42110.61110.00110.00109.60

Canadian gas

CAD/mcf

2.07

2.04

1.21

1.64

1.90

1.65

Assumptions

JCC(3Q-4Q)

Exchange rate
(3Q-4Q)

USD75.00/bbl

JPY110.00/USD

Canadian gas(4Q)
CAD1.90/mcf
JPY85/CAD

Impact on Profit

USD1/bbl increase in JCC
would push profits up by...

A weakening in JPY1/USD
exchange rates would pushprofits up by…

CAD 0.5/mcf increase in
Canadian gas prices would
push profits up by…

Operating income(loss)

JPY 100million

JPY 130million

JPY 70million

Profit (loss) attributableto owners of parent

JPY 80million

JPY 70million

JPY 60million

Note: In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currencydenominated receivables and payables also occur. Actual profits are influenced by a variety of other factors besides crude
oil prices and exchange rates.

24

＜Appendix＞
E&P Business (1) Projects in Japan and Overseas
Canada Oil Sands Project(Production)

Canada Shale Gas Project
U.K. North Sea Offshore Block(Planned to Development)

Russia Sakhalin-1 Project(Production)(Production & Development)

Oil and Gas Fields in Japan
Iraq Garraf Project(Production)

United States Tight Oil Project(Production)(Production & Development)Indonesia Kangean Project(Production & Development)

Blocks owned by our consolidated subsidiaries or equity-method affiliates

25

＜Appendix＞
E&P Business (2) Activities in Japan Operating 10 domestic oil and gas field Pursuing compensation of reserves inJapan and maintenance of the production
volume Pursuing additional E&P potential
including utilizing government basic
surveys

Yurihara
Oil and Gas Field

Yufutsu
Oil and Gas Field■Major projects in progress
Development of ashallow reservoir of
the Yufutsu Oil and
Gas Field

In process ofdevelopment toward
productioncommencement in
FY2020Exploratory Drilling at
Offshore Hidaka Area

In preparation for
exploratory drilling
operation scheduled in
2019

Katakai Gas Field

Iwafune-oki
Oil and Gas Field

Yoshii Gas Field

26

＜Appendix＞
E&P Business (3) Canada: Oil Sands Project
Project

Canada Oil Sands Co., Ltd. (CANOS)

Company

Operator ： Japan Canada Oil Sands Ltd. (JACOS)

Block

Hangingstone Leases

75％ interests

Calgary
Ongoing Production
FORT McMURRAY Area

Gradual increase from 20,000 bbl/dCorner JV Lease

12％ interests

Undergoing appraisal

Other bitumen leases(includes Corner & Chard)

Considering future
activities

Current status
January 2018; Relinquished Thornbury & Chard North (25% interests)
April 2018; Sold the Hangingstone DEMO area (100% interests)

Hangingstone
LeasesCorner JV Lease■Schedule of Hangingstone ProjectFebruary 2013

Commenced development works (early civil work)

February 2017

Completed construction of facilities

April 2017

Commenced steam injection to horizontal well pairs

August 2017

Commenced production

June 2018

Transition to stable 20,000 bbl/d level bitumen production

27△Rachel Notley, Premier of Alberta (second
from the left) celebrating the opening ceremonyof production startup

＜Appendix＞
E&P Business (4) Canada: Shale Gas Project
Upstream: Shale gas project

Midstream: LNG project

Block

North Montney Area, British
Columbia, Canada

Lelu Island,
The Port of Prince Rupert,
British Columbia, Canada

Interest

10% Interest

10% Equity

Operator

PETRONAS(Including subsidiaries)

PETRONAS(Including subsidiaries)

Current
status・Production and marketing gas
approx. 500 mmcf/d・Executing the development
plan prioritizing the area withhigh economics

Calgary

The North Montney Area
(Production & Development)

Vancouver Calgary
Decided not to proceedwith the LNG project on
July 25,2017■Schedule
April 2013

Signed a contract

July 2017

Decided not to proceed with the LNG projectCurrent status

Executing upstream development plan and working
on to maximize the value and economics of the
project

28

Shale gas drilling site＜Appendix＞
E&P Business (5) Iraq : Garraf Project
Project
company
Interest

Japex Garraf Ltd.

30％

(cost share 40%)
Operator ： PETRONAS

BaghdadGarraf Oil Field
Field

Garraf Oil Field

In Production

SamawahNasiriyah■Schedule
20132014 -2020

2020 4Q

First oil production in August 2013
Average daily production: approx. 64,000 bbl/d
Average daily production
September 2018: approx. 90,000 bbl/d*Gradual increase the production rate to 230,000
bbl/d
Achievement of plateau production target of
230,000 bbl/d

29

Basrah＜Appendix＞

E&P Business (6) Indonesia: Kangean Project
Project
Company

Pagerungan Gas Field (Production)

Interest

Kangean Energy
Indonesia Ltd. (KEI)+ 2 others, Equity-method
affiliate

25％ (Operator : KEI)TSB Gas Field（Production-partly）
Sirasun Gas Field
Terang Gas Field

Batur Gas Field

FPU (Floating production unit) in the
Terang Gas Field

Production volume 150 million cf/d (approx.26,000 boe/d) as of September 2018
□ the TSB Gas Field(Phase1: Terang): Production started in May 2012
Production rate 140 million cf/d (approx.24,000 boe/d)(Phase2: Sirasun, Batur): Under development towards gas productioncommencement in 2Q 201930

＜Appendix＞

E&P Business (7) Russia: Sakhalin-1 Project

Project
Company

Sakhalin Oil and Gas Development
Co., Ltd. (SODECO)
Equity-method affiliate

OdoptuInterest
Sakhalin 1 Consortium

SODECO
Arktun-Dagi

Exxon Neftegas Ltd.
30％
Others40%

Chayvo,Odoptu,Arkutun-Dagi

SODECO

30％

METI50.00%

JAPEX
15.29％
Others
34.71%

ChayvoIn Production at each fields*In 2017, the Chayvo Oil and Gas Field
achieved a new world-record of extended
reach drilling, at a measured depth of
15,000m

The Arkutun-Dagi Offshore Field
Provided by Exxon Neftegas Limited,
Sakhalin-1 project operator

31

＜Appendix＞ Infrastructure & Utility Business (1)the Soma LNG Terminal■Soma LNG Terminal
Site

Shinchi-Town, Fukushima Pref. (No.4 wharf areaof Soma Port)

Storage Tank

One LNG Tank of Aboveground Style/PC typecontaining 230,000kl

Receiving
Facilities

LNG ocean-going vessel ：Full set (maximum
210,000m3 class)
LPG domestic vessel ：Full set (maximum
2,500m3 class)

Vaporizer

Sending power ： 7.0MPa 75t/h x2

Shipping
Facilities

LNG domestic vessel ：maximum 4,800 m3 class
Tanker truck ：5 lanes, 30t/h

Commencementof Operation

March 2018

*In addition to the above, construction for another LNG tank (230,000kl) and
LNG vaporization equipment is ongoing■Soma-Iwanuma Gas Pipeline

Starting / End
point

Starting point ：the Soma LNG Terminal
End point ：the Iwanuma Valve station

Gauge

20B

Design Pressure

6.86Mpa

Distance

Approx. 39km

Commencement of
Operation from theSoma LNG Terminal

February 2018

△Bird view of the Soma LNG Terminal

32

＜Appendix＞ Infrastructure & Utility Business (2)Natural Gas-Fired Power Generation Project■The overview of Fukushima Natural Gas Power Plant
Head Office

Fukushima Gas Power Co., Ltd.* (Founded April 2015)

MethodGas Turbine and Steam Power (Gas Turbine Combinedcycle)

Capacity

1.18 million kW (2 units of 0.59 million kW)

FuelNatural Gas (Vaporized LNG)
Amount 700,000-1,000,000t/y (Utilization Ratio 60%90%)

Thermal Efficiency

Sending End 60.64% (LHV, Temperature 15°C)

Gas Turbine

1,500°C Class

Steam Turbine

Steam Condition (High-pressure/ Medium-pressure/Low-pressure)
600/600/284°C 15.6/3.34/0.5MPa
Steam Flow 370/85/50t/h
NOx Emission concentration Less than 5ppm

Heat Recovery Boiler△Rendering of the Soma LNG Terminal and the
Fukushima Natural Gas Power Plant

Revitalization of
local area

■Schedule

e.g. Job creation, Enterpriseattractions

Inexpensive
and stableelectric power
supplyOctober 2016

FID

June 2017

Approved Environmental Assessment

October 2017

Commencement of construction

2020

Commencement of commercial operations (planned)*Investment ratio: JAPEX 33%, Mitsui & Co., Ltd. 29%, Osaka Gas Co., Ltd. 20%,
Mitsubishi Gas Chemical Co., Inc. 9%, Hokkaido Electric Power Co., Inc. 9%33

＜Appendix＞
New Business Development
CCS (Carbon Dioxide Capture and Storage)
Implementing a CCS demonstration project in the Tomakomai areaof Hokkaido since April 2012, through Japan CCS Co., Ltd. (JCCS).
Cumulative Co2 injection was 207,000 tons as of the end of
October 2018.

Methane Hydrate

Photo provided by Japan CCS Co., Ltd

Implementing the second offshore methane hydrate production testfrom 2017, through Japan Methane Hydrate Operating Co., Ltd.
Currently, working on investigating, researching and developing
technology for resource recovery, exploration and other areas
related to shallow-type methane hydrate.

△Ground facilities of CCS Demonstration
Project at Tomakomai

Next-Generation Technology for Ocean
Resources Exploration
Developing the technology of research on mineral resources andtoward creating private industries from 2014, through the Researchand Development Partnership for Next-Generation Technology ofMarine Resources Survey (J-MARES).

34△Chimney (sulphide structure) formed by theeruption of hot water＜Appendix＞
Abbreviation
BOE(/D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CIF

Cost, Insurance and Freight

COP

Conference Of the Parties

CSR

Corporate Social Responsibility



E&P

Exploration and Production



FID

Final Investment Decision



GHG

Greenhouse Gas

HE

Hangingstone Expansion



HSE

Health, Safety and EnvironmentIOR (EOR)

Improved (Enhanced) Oil Recovery



JCC

Japan Crude Cocktail



JOGMECJapan Oil, Gas and Minerals National Corporation



LNG

Liquefied Natural Gas

MH

Methane HydrateP/L

Pipeline

PNWL

Pacific North West LNGROE

Return on Equity

RRR

Reserves Replacement Ratio

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

TSB

Terang, Sirasun, Batur



WTI

West Texas Intermediate35