JOGMEC REPORT
Integrated Report 2023

JOG M EC ʼ s G u idi ng Pri n ciples
Help to create more prosperous lives
by ensuring reliable supplies of natural resources and energy

Pursue sound economic developmentin harmony with the natural environment

Ensure full compliance withlaws and respect for human rights

Reflecting Our Aspirations in Our Logo Colors

Green: Nature

Consideration for the natural environment

Orange: The EarthEstablishment of a more robust foundation for societal andeconomic activities by accessing natural resources and energy

Blue: Sincerity

Legal compliance and respect for human rights

C o n t e n t s
TOP MESSAGE………………………………… 02

Value Creation Story ………………………… 08
Editorial Policy
Since fiscal 2019, the Japan Organization for Metals
and Energy Security (JOGMEC) has been publishing
the JOGMEC REPORT as an integrated version of
its customary annual and environmental reports.
This new publication is aimed at delivering useful
information to all of our stakeholders while also
clarifying our organization-specific values anddescribing how we intend to create long-term value.

April 1, 2022, to March 31, 2023
(Some activities conducted outside of this period
are also mentioned.)

Inquiries
JOGMEC REPORT Publication Office
Email: jogmec-report@jogmec.go.jp

Organizational units covered in JOGMEC REPORT 2022
Japan Organization for Metals and Energy Security

Referenced Guidelines, Etc.
Environmental Reporting Guidelines 2018, published by theJapanese Ministry of the Environment
Law Concerning the Promotion of Business Activities withEnvironmental
Consideration by Specified Corporations, etc., by Facilitating
Access to Environmental Information, and Other Measures
Guide to Descriptions Provided in Environmental Reports(Third Edition)
International Integrated Reporting Framework
The International <IR> Framework

What is the JOGMEC REPORT?
In fiscal 2019, JOGMEC began publishing the JOGMEC REPORTby integrating its customary annual and environmental
reports. We hope that this new report will serve as aneffective tool for communicating with our stakeholders andpromoting a deeper understanding of JOGMEC.

▲JOGMEC REPORTJOGMEC REPORT 2023

● Governance system● Activity briefing

JOGMEC REPORT● Introduction to our assistance● Environmental report● Social report● Financial information● Various types of data, etc.

Please note that the QR Codes are registered trademarks of DENSOWAVE INCORPORATED.

Topics……………………………………………… 18

Activity Briefing ………………………………… 22
Our Approach to SDGs…………………… 36

Financial Information ………………………… 52

Period Covered

Integrated Report 2023

Organizational Governance ……………… 10

About JOGMEC ………………………………… 56

TOP MESSAGE

The New JOGMEC will Continue to Secure
Resource and Energy Supplies to Support
Sustainable Social Development in Japan

02

The Japan Organization for Metals and Energy Security(JOGMEC) was established in February 2004 by
merging the respective roles of the Japan National Oil
Corporation (JNOC) and the Metal Mining Agency ofJapan (MMAJ) in order to secure reliable supplies of oil,natural gas, non-ferrous metals, and mineral resources.
Taking into account the experience of its predecessors,
JOGMEC has almost 60 yearsʼ experience of responding
to the changing global dynamics of the resource andenergy sector.
In recent years, the environment surrounding resourcesand energy has been undergoing major changes withthe heightening of geopolitical risks and responses tocarbon neutrality and so on. Such changes will have asignificant impact on both the price and stable supplyof energy and natural resources for Japan, which isalmost entirely dependent on imports.
In the context of these social environment changes, theamended JOGMEC Act came into effect in November
2022, and our name was changed from the “Japan Oil,Gas and Metals National Corporation” to the "Japan
Organization for Metals and Energy Security” to starta new chapter. In addition to our hitherto business
JOGMEC has started to work in the additional fieldsof financial assistance for production and storage ofhydrogen, ammonia and other decarbonized fuels,
carbon dioxide capture and storage (CCS), processing
and smelting of rare metals, geological structural
surveys for offshore wind power generation, andsupport for overseas geothermal surveys. Furthermore,pursuant to the Economic Security Promotion Act,JOGMEC is also implementing projects for the stablesupply of designated important resources such as
combustible natural gas and critical minerals.
With the Fourth Mid-Term Targets having come to an
end JOGMEC embarked upon the new (Fifth) MidTerm Targets from April 2023. Amid the unpredictableglobal and energy situation, JOGMEC will contribute torealizing a carbon-neutral society. Furthermore, in orderto ensure the stable and economical supply of energy
and resources for Japan, we will not only engage indialogue with customers and strengthen relationships
with overseas organizations, but also develop flexible
organizational management by promoting internal
cooperation and enhancing planning functions. We will
also continue to work on our business activities froma strategic and comprehensive perspective to blaze apath for the private sector and address issues that havean impact on society.
JOGMEC pursues tangible outcomes to gain accessto natural resources and energy in Japan and abroad.
Specific examples of this include the conductingof geological surveys, seabed natural resource
development, risk financing and other financial
support, technological development, technical support,

intelligence and information services, and proactive
resource diplomacy and international cooperation.
In addition, JOGMEC continues to support mine
pollution control to protect the environment in coexistence with local communities. The stockpiles ofnatural resources remain the last line of defense forenergy security for Japan.
JOGMEC pursues the efficient implementation of its
wide range of activities by not only seeking closer
internal coordination, but also promoting agile
management bolstered by close partnerships with thegovernments of natural resource exporting countries,
government agencies, and relevant companies fromJapan and other parts of the world.
In line with the gathering pace of global efforts tocomply with the Paris Agreement adopted under theUnited Nations Framework Convention on Climate
Change and the Sustainable Development Goals(SDGs), JOGMEC has recognized the necessity togive ever more consideration to the environment andsociety in its activities. To achieve its mission of securing
reliable resource and energy supplies, JOGMEC mustprioritize its efforts to address climate change, build a
recycling-oriented society, and pursue environmental
conservation in its resource development. After a series
of internal discussions on its possible contributions tomeeting the SDGs, JOGMEC established a five-pronged
code of conduct for all of its employees and officers infiscal 2018. This code of conduct is shared outside theagency as well to promote the harmonious coexistenceof human society and the environment.
Since fiscal 2019, JOGMEC has been publishing the
JOGMEC REPORT, which combines the Annual Reporton activities conducted up to the previous fiscal year
and the Environmental Report on initiatives undertakenwith due consideration given to the environment. This
new report provides detailed explanations of the targets
and value-creation initiatives that JOGMEC has pursued
over the medium to long term in line with its role as
an agency responsible for securing stable resource andenergy supplies. The JOGMEC REPORT is intended toenable not only the resource and energy industry, butalso the general public and various other stakeholders
to gain a clear understanding of our activities.
T h e J O G M E C R E P O R T a l s o p rov i d e s d e t a i l e d
explanations of how we conduct our activities withdue consideration given to the environment in synergy
with local communities and how we provide tangible
assistance for human resource development in Japanand foreign countries.
We expect this integrated report to serve as a bridge
between the Japanese public and other stakeholders
on the one side and JOGMEC as a force for sustainablesocial development through stable supplies of resourcesand energy to Japan on the other.

Secure energy and natural resource supplies tosustain livelihoods and support industrial activities
Respond to climate change and contribute to
the development of a recycling-oriented society
Pursue resource development throughsuitable environmental conservation activities
Secure partnerships with stakeholders tobuild thriving local communities
Foster an environment that is conducive toeveryone playing an active role

TAKAHARA Ichiro, Chairman & CEO

03

Our Mission

JOGMEC aims to bolster the future prosperity ofJapan by fulfilling its mission to secure reliablesupplies of resources and energy.

04

As an incorporated administrative agency, JOGMEC carries out its mission to secure reliable
and affordable supplies of resources and energy for Japan. It works with national governments,
local governments, and various companies to facilitate the on-site development of resources andenergy for the betterment of peopleʼs lives and the prosperity of Japanese industry.

People’s
lives
人々の生活

Manufacturingthat
暮らしを支えるsustains
people’s lives
ものづくりの現場

Development
資源・エネルギーのof resources
開発現場
and energy

05

Our Role

JOGMEC plays three key roles in securing reliable
and affordable supplies of resources.

1
A
leading developer of
資源・エネルギー開発のresources and energy
中心的機関としての役割
In tandem with the national policyof creating a conducive environment,
リスクマネー支援や資源外交支援の積極
JOGMEC plays a leading role in helping
的推進など、
日本企業の海外資源開発に関J ap ane s e c omp anie s t o dev el op
する環境整備といった国の政策と連携し、overseas resources independently
and meet their own needs by 資源・エoffering
企業のニーズを汲み取りながら、
various types of support throughネルギー開発の中心的機関として、日本のfinancial assistance, proactive resource
自主開発に貢献します。
diplomacy, and so forth.

06

The global energy and resource landscape is bleaker than ever before due to the ongoingcompetition for resources. Furthermore, Japan is facing the challenge of rising procurement costs
for fossil fuels. Given this, it is all the more important for Japan to secure reliable and affordable
supplies of resources by systematically adopting the requisite measures to maintain andstrengthen its industries, thrive economically, and bring prosperity to its people.
With this in mind, JOGMEC plays three essential roles.

2
A stockpilingorganization
セキュリティのservingas the last line of
最後の砦である備蓄を
defensefor Japanʼs energy
担う機関としての役割
and resource security
安全かつ効率的な運営に十分留意しつつ、
J O G M E C s t o c k p i l e s re s o u rc e s
資源備蓄を着実に運営・実施するとともに、s y s t e m at i c al l y an d s t e a dil y an dmanages them safely and efficiently.
緊急時における機動的な備蓄の放出を実行
JOGMEC also has the capability torelease them quickly in the event of an
emergency.

する体制を整備します。

3
An organization that
環境保全の一翼を担う
drivesenvironmental
機関としての役割
preservation

鉱害防止を支援する唯一の機関として、
最JOGMEC plays an exclusive role insteadily supporting mine pollutionと効率的な運営の両立を図りつつ、鉱害防control initiatives by dev el oping
止支援業務を着実に実施します。
the necessary technologies while
al so s triking a balance bet weene nv ironm en t al c o n s e r vat i o n an defficient business operations.

新の鉱害防止技術の開発を続け、
環境保全

07

Our Model

JOGMEC is working to bolster the future prosperity ofJapan in every phase involved in the securement of vital
resources and energy for peopleʼs everyday lives.

Input
Scarcedomestic
resources
Fluctuations
in resource
pricesOur

Human resources
Human resources with ahigh level of expertise

No. of Employees: 666
Percentage of graduates fromthe graduate school: 81.4%(Technical employees)

Offshore
wind
power

Technical capabilities
Geopoliticalrisk

Naturaldisaster risk

Japanʼs only organization
specializing in natural
resources and energy

Technology & Research Center (TRC)
Metals Technology Center
Kashiwazaki Test Field Office

CCS

Global business development
Global footprint

Miningpollution risk

Climatechange risk

Domestic offices: 23
Overseas offices: 13

Diverse alliances

Joint research with overseas
resource development companies
Conclusion of MOU withgovernments of resource-richcountries
Industry-university collaboration, etc.

Hydrogen &ammonia

An independent administrative
sustainable development of

08

JOGMEC offers a wide range of services, from geological surveys, financial support, andtechnological development to technical support. These services are provided in the formof seven types of projects related to oil and natural gas, metal resources, coal, geothermal
resources, hydrogen and ammonia, CCS, and offshore wind power.
The only agency to provide such a wide variety of services, JOGMEC ensures stable supplies ofresources and energy for Japan to safeguard peopleʼs lives and economic activities.

Activities

OutputOutcome

GeologicalsurveysMarineresource
development

Oil andnatural gas

FinancialassistanceMetal
resources

Technologicaldevelopment andtechnical support

Stockpiling

Coal

Geothermal
resources

institution supporting theJapan

Strategicallysecuring resources

Enhancing energy
security

Environmental
safety and mine
pollution control
Collection andprovision of
information
Resource
diplomacy andinternational
cooperation

Protecting naturalenvironment09

Organizational Governance

Priority Subjects and Achievements of the Fourth Mid-Term Targets
JOGMEC is pursuing its Fourth Mid-term (from April 2018 to March 2023) Targets between the 16th and20th years since its establishment. Investments in resource development generally take 10 to 15 years todeliver tangible results. Given this, the outcomes of activities that the agency has conducted to date is
subject to rigorous scrutiny in the upcoming phase.
Meanwhile, The current situation surrounding the business activities under the jurisdiction of JOGMEC
is becoming increasingly severe. The competition for global resources is intensifying with some emergent
economic powers acquiring resource interests in earnest. In light of this trend, the needs of resourceproducing countries and related companies are becoming ever more diverse and complex. In addition,
the advent of AI, IoT, and other innovative technologies may revolutionize the business model and lead toradical changes in the players involved in resource development.
Under these circumstances, the following are the three priority issues that JOGMEC was tasked with in the
fourth mid-term targets. We were able to achieve results over the period that exceeded the original targets.

Priority Subjects

1

2

3

B y i m p ro v i n g d i s c u s s i o n swith stakeholders and crossorganizational coordinationand planning capacity in
JOGMEC, steadily achieve
tangible outcomes through agileorganizational management thatmobilizes all available tools andinterpersonal networks.

Serve as an agent for change,
voluntarily and dauntlessly addressi s s u e s t h at h av e g re at s o c i al
impact. Such initiatives should be
implemented to change Japan ʼ snegotiating position against resourceproducing countries, a trail for
private companies, and awareness of
our resource policy among citizens,companies, and society as a whole.

Establish a system capableof enhancing nancial efciency
and soundness in response to
the increasing amount of risk
assets associated with ongoing
nancial assistance projects.
Every year, fulll the organizationʼsaccountability requirements andreport on its nancial status.

Priority Subjects of the Fifth Mid-Term Targets
Over the Fifth Mid-Term Targets period (April 2023 to March 2028), as the “new JOGMEC” we will continue
to contribute to securing the stable supply of resources and energy with the following three priority subjects.

Priority Subjects

1

2

3

Human resources/
technology

CapitalInformation

Financial assistance function for
decarbonization projects, etc.
I m p l e m e n t i n g e v e n m o rep ro a c t i v e s u p p o r t a m i d asituation in which the energy
development appetite ofcompanies is declining.

Intelligence functions
Proactively transmitting andre c o m m e n d i n g J O G M E C ʼ s
information and experience in
response to increasingly complex
and sophisticated resource andenergy technologies/policies

Incubation and consulting
functions
Generating a favorable cycle ofbusiness expansion/securing of
human resources/contributing
to society through the earlycreation of success stories in the
carbon-neutral business area

For details on the project plans, goals, reports, and other relevant
information, open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/disclosure/businessplan_001.html

10Organization Outline (as of April 2023)
Chairman & CEO

AuditorPresident●

Auditorsʼ Office

Carbon Neutral Promotion Headquarters

Executive Vice
President

Executive Vice President

Executive Vice
President

Executive Vice
President

Executive Vice
President

Executive Vice
President

Management
Division

Energy Business Unit

Metals Strategy &Exploration Unit

Stockpile Unit

Metals Environment,
Seafloor Mineral
Resources & Coal Unit

Renewable Energy
Business Unit

• Metals Environment
Management
Department• Seafloor Mineral
Resources
Department• Coal Development
Department• Coal AssetManagement
Department• Kyushu Branch Office• Geothermal Business
Department• Geothermal
Exploration andTechnology
Department• Offshore Wind
Development
Department• Internal Audit Office• General Coordination
Department• Human Resources
Department• Financial
Management& Accounting
Department• Evaluation
Department• Business Strategy Department• Energy Project Department• Exploration Department• Research and Analysis Department• Administration and Training
Department Group• Technology Department• Hydrogen and CCS Project Department• Methane Hydrate Research &Development Group• Metals Strategy
Department• Metals Exploration
Department• Metals Development
Department• Rare Metals Stockpile
Department• Stockpile Planning
Department• Petroleum &LPG Stockpile
Management
Department• Safety, Environment& Engineering
Department

Revenues and Expenses▲

Financial Results for Fiscal 2022(Million Yen)

Grants foradministrative
services 21,096
Revenues
from entrusted
activities 94,071

Operatingrevenues 7,960
Other revenues 1,894

General andadministrative
expenses 1,828
Operating expenses 41,298

Interest expense 16

Expensesfor entrusted
activities
94,864

Subsidies
142,989
National government
investment
178,500

Other expenses 225

Revenues

1,343,748million yen

Borrowings
574,867

Investments
and loans
1,155,310million yen 540,030
ExpensesLoan
redemption
477,048

Returns on investments
and loans
322,370* The abovefigures have been rounded to the nearest million yen so the totals may not be an exact match.
* The revenues and expenses provided here are the financial results indicated in JOGMECʼs financial statements as stipulated in Article 38 of the Act on General
Rules for Incorporated Administrative Agency.
For details on other financial information, open the URL below or scan the
QR Code on the right.

https://www.jogmec.go.jp/disclosure/regulation_report_001.html

11Organizational Governance

Organizational Governance

Governance System
Governance System●

Internal Control System Internal
Control
SystemRisk Management
SystemJOGMECstrives
to engagein the conscientious management of a transparent
organization with
due respect given to legal
compliance and human rights while also ensuring financial soundness.
JOGMEC strives to engage in the conscientious management ofChaired by the Chief Risk Manager, the Risk Management
Under the leadership of the Chairman & CEO, a committee was established to implement internal control measures aimed
a transparent organization with due respect given to legal compliCommittee reviews and deliberates on risk management issues
at ensuring that work is conducted appropriately.
ance and human rights while also ensuring financial soundness.
before reporting to the Internal Control Committee. Specializedcommittees are established as required to address specific risks
Under
the Management
leadership of the Chairman& CEO, a committee was●
Risk
Systemthat need to be separately managed.
established to implement internal control measures aimed at
Chaired by the Chief Risk Manager, the Risk Management Committee reviews and deliberates on risk management issues
ensuring that work is conducted appropriately.
beforereporting to the Internal Control Committee. Specialized committees are established as required to address specificrisks that need to be separately managed.
▲

Internal
Control
System Internal
Control
SystemAuditors

LegendConsultative
body

Implementation
item

Role

Unit responsible

Audit
Internal control system
Monitoring

ReportInternal Control Committee

Internal Audit OfficeInternal Control Coordination Meeting
Internal Control Unit

Chairman(Chairman & CEO)

(General Coordination Department)

Committee members(Director General, General Coordination
Department)Internal control officers(Planning director of each unit andrelevant directors of other offices)

Chief Internal Control Officer(President, executive vice presidents,and managing director)

1. Monitoring of internal controls in the organization
2. Planning and organization of training
3. Intelligence and information
4. Organization of coordination meetings
5. Reporting to directors in charge
6. Others (Secretariat of the committee, etc.)

ReportDiscussion items
1. Investigation of important matters,planning, and coordination
2. Monitoring of activities
3. Others

Collaboration

ReportSpecialized committees

Chief Risk Manager/Chairman

Risk management committee for oil and LPG stockpile site
Risk management committee for the Matsuo New Neutralization
plant

Risk managers/committee members

ReportRisk management committee for exploration using 3D seismic
vessels

Discussion items
Risk management committee for studies conducted by themarine resource research vessel “Hakurei”
Security committee for the electronic data and information
systems

Persons in charge of risk management(Directors general and group leaders)

12

Reporting and discussion items
1. Dissemination of items discussed by the committee
2. Investigation, planning, and coordination at
assigned units and offices
3. Monitoring of activities at assigned units and offices
4. Others(each chaired by the executive directors, director generals, or other officers in the assigned unit)(Executive Vice President in charge ofgeneral coordination)

1. Organization-wide or departmentspecific risk management
2. Risk identification
3. Risk analysis
4. Risk evaluation
5. Response to risk
6. Risk monitoring
7. Others

Assignments
1. Monitoring of internal controls at assigned
units and offices
2. Reporting to Chief Internal Control Officer
3. Others

Risk management system

Risk Management Committee(Directors general andmanaging directors)

ReportAssignments

Internal control director and members(Executive Vice President
in charge of general coordination)

Monitoring

Assignments
1. Management of task-related risks that canaffect the entire organization
2. Risk management of tasks that can affectemergency responses by Headquarters
3. Management of risks involved in tasks otherthan those specified in Assignments 1 and 2
above
4. Monitoring of risks involved in the tasks
specified in Assignments 1 through 3 above
5. Inspections and necessary repairs forfacilities and the like
6. Others(* The security committee is responsible only
for Assignments 1 through 4.)

Risk Management
Risk Management▲

Adhering to its Risk Management Regulations as a guiding
Adhering to its Risk Management Regulations as a guiding
principle, JOGMEC seeks to minimize the risks associatedprinciple, JOGMEC seeks to minimize the risks associated with
with
disrupted
operations
any associateddamagedisrupted
operations
and any andassociateddamage throughthethroughthe implementationof appropriate
responses
byimplementationof appropriate responses
by identifying,
analyzing,andevaluating
risk
factorsinadvance.
identifying, analyzing, and evaluating risk factors in advance.

Risk Management Method

 Risk Management Method(1) Create work procedures according to the various(1)assignments
Create work
proceduresto the variousof therespectiveaccording
departments

assignments of the respective departments(2) Identify the inherent risk factors for each work procedure(2) Identify the inherent risk factors for each workand analyze the associated risk factors
procedure and analyze the associated risk factors(3)(3)
Evaluate
the theidentified
risksrisks
Evaluate
identified
Establish
policies
systems
for adopting(4)(4)
Establish
policiesand andsystems
for adopting
the thenecessary
responses
and conducting
necessary
responses
and conducting
publicpublic
relationsrelationsactivities
when
any of risks
the identified
risks
activities
when
any of theidentified
are imminent
are imminent(5) Revise the abovementioned items as necessary(5) Revise the abovementioned items as necessary

Promotion of Compliance
Promotionof Compliance
Establishment of a Whistleblower Office

Establishment of a Whistleblower Office
JOGMEC maintains
maintains its
management
by by establishing
pursues the prevention,
earlyrules
detection,and correctionof compliJOGMEC
its soundsoundorganizationalorganizational
management
systems andthat enable
its employees,
establishingsystems
and
rules
that
enableits
employees,
officers,
anceviolations
through
the
JOGMEC
Compliance
Hotline,which
officers, and external stakeholders to directly consult or report on compliance violations and the like. Whistleblowers
andexternal
stakeholders
todirectly
consultorreportoncompliit
establishedforexternal
whistleblowers
and
other
stakeholders
are securely protected from reprisals. Going beyond internal measures, JOGMEC pursues the prevention, early detection,
ance correction
violations andofthe
like. Whistleblowers
are securely
protected
to reportHotline,
or consultwhichon illicititbehavior
in relation
researchandcomplianceviolations
throughthe JOGMECseeking
Complianceestablishedfortoexternal
fromreprisals.
Goingbeyondinternal
measures,
JOGMEC
and
the
like.
whistleblowers and other stakeholders seeking to report or consult on illicit behavior in relation to research and the like.

▲

Operational
Procedure
the Whistleblower
System Operational
Procedure
for the for
Whistleblower
System
内部窓口への相談・通報
Consultation
with and reporting to the internal
whistleblower office

外部窓口への相談・通報
Consultation
with and reporting to the external
whistleblower office
弁護士から倫理監督者へ報告
Reporting from lawyers to the ethics supervisor
報告

行動規範委員会で相談・通報内容の確認
Consultation and examination of reported matters by the Code of Conduct Committee

報告

Report

意見Report監

Factfinding by the Fraud Prevention Team (Examination of evidence, questioning, etc.)

No violations identified
通報者・相談者へ報告(通報・相談者が不明な場合を除く)

Reporting to whistleblowers or consulters(Except for anonymous whistleblowers or consulters)

違反行為が確認された場合

Violation identified
不正防止推進チームの是正・再発防止策検討

Validation by the Code of Conduct Committee(違反行為の事実と対応策)

Announcement of facts, if necessary(Any violations and countermeasures)

報告
意見Report
OpinionConsideration of corrective and preventive measuresby the Fraud Prevention Team
行動規範委員会で有効性の確認

必要に応じ事実の公表

Report事
Auditors

違反行為がViolation identification by the Code of Conduct Committee
確認できない場合

懲戒その他措置
Disciplinary punishment or other measures

報告
Report

処分命令

事
長 & CEO
Chairman

報告

行動規範委員会で違反の有無判定

Opinion理

不正防止推進チームの事実調査（証拠確認、事情聴取等）

報告
意見Report

Opinion
Order for necessary action

13
JOGMEC REPORT 201915

Organizational Governance

Code of Ethics, Code of Conduct, and Other Rules
JOGMEC has implemented compliance requirements stipulating that its officers and employees must always carry out theirassignments with due consideration given to upholding the expected ethical standards and avoiding any conduct that may
lead to public suspicion or distrust with respect to fairness. To retain public trust, JOGMEC has also established a code of
ethics and a code of conduct for its officers and employees.
All JOGMEC employees and officers must receive compliance cards and undergo compliance training. In addition, they must
renew their declaration on robust compliance every year to promote their commitment to compliance.

Resolute Stance Against Anti-Social Forces
JOGMEC maintains a resolute stance against anti-social forces and refuses to comply with unreasonable demands fromthem. Furthermore, JOGMEC refuses to deal or maintain relations with anti-social forces, ensures the safety of its employees
and officers, and implements other relevant policies to ensure appropriate work conduct and maintain public confidence inthe agency.

Declaration on Robust Compliance● Maintaining Public Confidence

As a public agency, JOGMEC strives to maintain and gain further public confidence in relation to the roles that it
plays in securing Japanʼs access to resources and energy. In addition to meeting legal compliance and accountability
requirements, the agency will make sure that its employees and officers are familiar with and put into practice its code of
ethics and code of conduct while maintaining proper relationships with its stakeholders.
● Compliance

In carrying out its work, JOGMEC complies with its own internal regulations as well as relevant laws in Japan and abroad.
● Accountability

Mindful of its public nature, JOGMEC discloses relevant information swiftly and appropriately to ensure that it fulfills its
accountability adequately.
● Sound Relationships with Counterparts and Stakeholders

JOGMEC deals with its counterparts fairly and conscientiously, leaving no room for collusion or any other suspicious
conduct. All of its employees and officers adhere to its code of ethics and engage in ethical conduct by paying theutmost attention to avoiding the exchanging of gifts, wining and dining, and any involvement in other prohibited practices
with stakeholders.
● Appropriate Information Management

JOGMEC manages any secrets or personal data that it obtains from its counterparts securely and appropriately to fulfill
its duty of confidentiality in line with relevant laws.
● Respect for Human Dignity

Prohibiting all forms of discrimination and harassment, JOGMEC respects the personality and dignity of not just its
employees and officers, but every individual in society. It is working to create a sound, safe, and conducive working
environment.
● Awareness Activities Aimed at Fostering a Compliance Mindset

JOGMEC conducts awareness programs, regular training, and other compliance-related activities to foster an appropriate
mindset in its employees and officers, thereby discouraging them from engaging in any illicit activities.
● Environmental Conservation

JOGMEC works tirelessly to gain a deeper understanding of environmental laws and regulations in different parts of theworld. Further to this, it duly trains its personnel and exchanges opinions with local communities to ensure environmental
conservation and compliance with these laws and regulations.
June 2, 2023
the Japan Organization for Metals and Energy Security
Chairman & CEO

14

TAKAHARA Ichiro

JOGMEC has established a management system for
health, safety, and the environment (HSEMS) by combining
the following two international standards obtained by
Headquarters and the Technology & Research Center: ISO
14001 certification for the environment and ISO 45001
certification for occupational health and safety.
JOGMEC employees and officers are joining forces to procure
environmentally friendly items, save power and paper, andimprove health and the working environment. They are also
trying to reduce the level of risk associated with health,safety, and the environment in projects related to the
exploration, development, and stockpiling of oil, natural gas,coal, geothermal energy, metals, and mineral resources, aswell as production and storage of hydrogen, carbon storage,
offshore wind power surveys and mine pollution control.

▲

Robust Management of Health,
Safety, and the Environment (HSE)

HSE Management System and Key Roles
Chairman & CEO●

Develop the HSE policy●

Arrange and assign necessary management resources (human resources,
equipment, funds, technologies, etc.)●

Revise the HSEMS based on HSE audit results

HSE auditors●

Conduct HSE audits inaccordance with theannual HSE audit plan●

Report HSE audit results
to the Chairman & CEO●

Submit recommendations to the audited
departments tocontinuously improve
the HSEMS

HSE managers●

Develop, maintain, andimplement the HSEMS●

Draft an HSEMS
manual●Conduct standard
training andcertification training●

Draft an annual HSE
audit plan

Directors general

HSE Office●

Coordinate
administrative matters
involving overall HSE
activities and auditing●

Implement a
crossorganizational
HSE project

HSE leaders●

Draft a management programfor department-specific goals
and objectives●

Implement, maintain, andmanage HSE-related activities at
assigned departments●

Approve procedure manuals for
assigned departments●

Draft relevant procedure manuals
for assigned departments●

Conduct special training●

Assist directors general on
overall HSE activities at assigned
departments

Certification obtained by Headquarters and the Technology &Research Center

Information System Security
Security Policy
JOGMEC has established a basic management policy for its electronic data and information system as part of its efforts
to comply with laws against data breaches, unauthorized access, and the like by operating and reinforcing a highly
secure electronic data and information system. An emergency manual has also been developed to provide guidelines onminimizing any damage that may be caused by incidents affecting information security.

Privacy Policy
JOGMEC takes great care in its handling of any personal data that it receives to ensure that such data is protected securely
and appropriately in accordance with its privacy policy.

Web Accessibility Policy

JOGMEC strives to ensure and further improve equal access for all to its website. In light of this, it aims to meet thestandards stipulated in JIBS X 8341-3:2016 (The guidelines of web accessibility in the Japanese Industrial Standards).

Intellectual Property
JOGMEC implements management initiatives for all stages of its research and development process, from basic researchthrough to the commercial application of its outcomes by its partners and other exit points. In this manner, it seeks tomaintain and gain access to resources while making a tangible contribution to the producing countries and honing its own
competitive edge together with that of Japanese companies.
On April 1, 2018, JOGMEC established an intellectual property policy that outlines various types of intellectual property
associated with its research and development activities and the way they are handled.
For details, open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/disclosure/informationopen_10_000013.html

15Organizational GovernanceConducive Working Environment
Resource development, which is at the heart of the activities conducted by JOGMEC, takes
a long time. In fact, it usually takes more than ten years to transition from the launch of a
project through to the start of production. Therefore, JOGMEC is striving to cultivate a
conducive and stable working environment in which the project staff feel comfortablecommitting to long-term assignments. In fiscal 2020, we became the first independentadministrative corporation (agency managed under the medium-term objectives) to beawarded both the Kurumin certification, which is recognized by the Minister of Health,
KuruminEruboshi (three stars)
Labor and Welfare as a childcare supportive organization, and the Eruboshi certification,
which is recognized as an organization that is promoting womenʼs participation and advancement in the workplace.

Work-Life Balance
In order to further enhance the work-life balance of its personnel, JOGMEC is working to reduce overtime hours by
establishing a no overtime day throughout the organization and promoting work efficiency.
JOGMEC encourages its personnel to use as much of their paid leave as possible each year by, for example, taking at least
one leave day every month and taking consecutive leave days in combination with national holidays, thereby improving thepercentage of employees taking annual paid leave. Furthermore, we have a remote work and summer holiday system, andhave established a holiday system in which personnel can carry over to the next year a maximum of ten days of paid leavethat would otherwise become invalid when not taken.

▲▲

Average number of days of paid leave taken (per employee)

Percentage of male employees taking childcare leave (%)

15.8

50.0
42.9

14.7
13.5

2020

27.3

2021

2022

2020

2021

2022

Furthermore, we are making exerted efforts in childcare support through childcare leave until children reach the age ofthree and reduced working hours while children are at elementary school. In recent years the rate of male employees
taking childcare leave has been increasing. In fiscal 2022 we also established a leave system for those undergoing infertility
treatment, and a nursing (breastfeeding) room. We also have a system that allows employees to take leave to accompany
their spouses when they are transferred overseas, as well as a leave system for self-development that allows employees toparticipate in study and volunteer activities, and are pursuing initiatives to achieve diverse ways of working.

Promotion of Diversity
In order to further promote the creation of a workplace where all employees with diverse attributes and expertise canwork comfortably, JOGMEC formulated and announced the Diversity Declaration and the Diversity Promotion Policy infiscal 2020. Under the Declaration, we continuously pursue initiatives such as the establishment of training and consultation
points for awareness education, and in fiscal 2022 we established the “Diversity Talks” as a forum at which employees
can freely exchange opinions with each other on particular themes. We will continue in the future to aim at creating aworkplace atmosphere with a high level of mental safety in which opinions can be shared freely and easily, and carry on
with such initiatives.

Diversity Declaration
The Japan Oil, Gas and Metals National Corporation (JOGMEC) believes that the eagerness and enthusiasm of each and every
employee is the driving force of our organization. With this in mind, we respect the individuality and autonomy of each employee,
always provide opportunities for capability building and education, and aim to manage our organization with human growth at thecore. Furthermore, we are also striving to achieve a good work-life balance.
Going forward, our operations are expected to change on a daily basis in response to changes in the environment surrounding
resources and energy. We need to build a resilient organization where all employees can respond quickly and flexibly to suchchanges and create new value.
To achieve this, it is necessary for us to raise awareness about diversity and build a workplace where members with diverse
attributes including gender, age, disability, beliefs and values, can freely and openly discuss issues.
We have reaffirmed this as an important issue and established the “Diversity Promotion Policy”. We aim to be an organization where
diverse people respect each other and work with a sense of fulfillment and satisfaction.
March 24, 2021
16

Securing and Fostering the Appropriate Human Resources
Based on the expansion of business following the amendment of the Act on the Japan Oil, Gas and Metals National
Corporation, and changes in the state of society, in order to secure excellent human resources appropriate to businessneeds JOGMEC recruits human resources who can approach their work with sincerity and a sense of duty as a memberof an Independent Administrative Agency, and maintain broad perspectives and the will to take on challenges.
Moreover, in order to deal with ever more sophisticated and diversied business and attempt to bolster the medium-tolong term professionalism and ability of both the personnel and the Corporation as a whole, JOGMEC is systematically
implementing a wide range of systematic training with professionalism, field experience and linguistic ability as the threepillars of human resource fostering.
Conceptual diagram of JOGMEC straining system
New employees

Medium-to-long-serving
personnel training

Young employees

Managerial training

Assistance for acquiring degrees

Professionalism

Overseas and domestic graduate school study

Field experience

Technical Center – Basic/specialist courses
On-site training

Linguistic ability

Geological excursions in Japan and overseas

CommonExternal training
Joint sector training

Three pillars of fostering
human resources

Technology-related professional skills

Internal training(as of August 2021)

Resource developmenttraining
Dispatch training(petroleum, mining, storage & related bodies)
On-site training (drilling, CCS)

Administration-related
professional skills

Internal training

Assistance for acquiring degrees

On-site training

External training

Overseas and domestic graduate school study

Personnel, accounts, intellectual property, financial analysis etc. training
Dispatch training (Relevant contact points at central government ministries andagencies, independent administrative institutions, corporations etc.)

Internal training
Appointment of mid-to-longserving personnel training

New employee
training

Business skills

OJT training

Managerial training(assignment training, evaluator training etc.)

OJT instructor training(guiding juniors)

Agreement practice training
Business skills improvement training
Self-education training/assistance for public examinations)
Language training (English, second languages)
HSE training / compliance training / data security training (including personal information)/ harassment prevention training developmenttraining / Corporate document management training

With regard to the education of young technical employees in particular, JOGMEC believes believe that from a long-term
perspective it is vital to improve their linguistic abilities and professionalism in resource fields, as well as cultivate theirsense of working in the field. With this in mind, JOGMEC implements training at mines etc. outside of Japan. Furthermore,
we are working on the eager fostering of personnel who can perform dynamically in the resources and energy business,
which relies on imports. In fiscal 2022 three of JOGMECʼs personnel attended overseas graduate schools and four attended
domestic graduate schools (a domestic graduate school training system: one; a degree support program: three). In addition,
75 underwent English language training and 13 studied second language courses.
Furthermore, with regard to our personnel system, by establishing a multiple-track occupation type system personnel areable to exercise their abilities in the fields that they themselves wish to throughout their entire careers, and it is possible forthem to aim at becoming specialists. We will continue to aim to become an organization boasting an even higher degreeof expertise while supporting the autonomous career-building of our personnel.

17

Activity Briefing

TOPIC
1
green

H
H

H

N

H
H
blue

The “New JOGMEC” Starts
Aiming to achieve “carbon-neutrality by 2050” and the ambitious greenhouse gas reduction
goals for fiscal 2030, the Japan Oil, Gas and Metals National Corporation Act (JOGMEC Act)was revised. As a result, JOGMEC has added functions of providing financial assistance for
production and storage of hydrogen and ammonia and carbon dioxide capture and storage(CCS), as well as geological surveys for offshore wind power generation. This strengthened thefunctions of JOGMEC in addition to its hitherto business. Furthermore, with the establishment
and promulgation of the Act on the Promotion of Ensuring National Security through Integrated
Implementation of Economic Measures (Act No. 43 of 2022), guiding principles on ensuring
stable supply of combustible natural gas and important minerals designated as specified
important commodities were announced, and JOGMEC was designated as the Independent
Administrative Agency for Stable Supply Support. In order to flexibly implement these new
businesses JOGMEC has conducted fundamental organizational reforms on a hitherto unknown
scale. We will continue to contribute to the stable supply of energy and mineral resources toJapan.

The JOGMECʼs Name Has Been Changed
With the addition to our business of work related to hydrogen and wind power, JOGMECʼ
official name has been changed from “Japan Oil, Gas and Metals National Corporation” to"Japan Organization for Metals and Energy Security.” It should be noted that since the English
abbreviation of “JOGMEC” has become permeated throughout the resource-producing nations
since our establishment in 2004, it will remain unchanged.

LiNi(New) Japan

(Old)

Japan

Organization for

Oil

Metals andGas and

EnergyMetalsSecurity

National
Corporation

18

Added businesses
Here we provide a simple outline of the additional five businesses resulting from the revision of the JOGMEC Act on
November 14, 2022. For more details please look at the JOGMEC website and JOGMEC NEWS PLUS.

CCS

Hydrogen
By providing Japanese companies implementinghydrogen, ammonia and other production andstorage projects within and outside of Japan
with financial assistance, information collection,technical development and collaborating
through JOGMECʼs support functions, we will
aim to create a hydrogen (H2) and ammonia(NH3) supply chain, and promote the securingof stable supplies.

In addition to conducting geological surveys
JOGMEC provides support for the financing
and liability guarantees of Japanese companiesʼ
CCS projects. JOGMEC puts to use its hitherto
acquired knowledge to conduct geological surveys(suitable site surveys) for carbon storage on land
and at sea overseas and within Japanese waters.
In conjunction with these efforts JOGMEC also
provides support for the financing and liability
guarantees of Japanese companies that are
involved in CCS projects, preparing an environment
in which domestic companies can promote highrisk CCS projects. In addition, through collaboration
with other Japanese CCS-related organizations
we are pursuing the creation of networks and thedevelopment of international rules.
(Image courtesy of Japan CCS Co., Ltd.)JOGMEC implements surveys of wind conditions
and geological surveys for offshore wind power
projects, and by providing companies that are
seeking to conduct offshore wind power projects
in Japan with the survey results, we promote theformation of projects in this field.

Offshore Wind Power

By providing financing in the overseas geothermal

In additional to the initiatives that we have

exploration projects of Japanese companies, andhitherto pursued in the metals sector, we will also

obtaining and recirculating the technology andnewly launch financing and liability guarantees

knowhow requisite for large-scale development,for processing and smelting of rare metals ande t c., we promo t e l arg e - s c al e g e o thermal

minerals in Japan, and aim to secure the further

development projects within Japan.

stable supply of metallic mineral resources.

Overseas Geothermal Exploration

Metals19

Activity Briefing

TOPIC2

Release of National
Oil Stockpiles
On August 10, 2022, as part of theInternational Energy Agency (IEA) collective
actions* and in line with the Oil StockpilingAct, JOGMEC released part of the nationaloil stockpiles from the Shirashima Base.

The place where the release of national oil stockpiles took place: Shirashima National Petroleum Stockpiling Base
There are ten national petroleum stockpiling bases in Japan, where oil is stockpiled
with the objective of securing a stable oil supply. Shirashima National Petroleum
Stockpiling Base is one of these bases, and is situated on an island in Hibikinada,
8km offshore Kitakyushu City in Fukuoka Prefecture. As shown in the diagram to theleft, it adopts the floating tank method composed of eight large tankers in a row. It
is a facility known as the largest offshore petroleum stockpiling base in the world.
Since its completion in August 1996 the Shirashima Base has regularly conductedemergency release drills and general disaster control drills with the local fire brigade
and coast guard office, etc.
Operation surveillance

Meteorological and oceanographic surveillance

Safety, disaster control and environmental surveillance

Inert gas
Primary dike(ﬂoating type)

StoragevesselTo the crude oil
gas treatment unit

Inert gas injection

Sea berthPrimary dike(ﬂoating type)

Floating oil
fence

Crude oil
Breakwater/
secondary dike

Seawater

TankerSurveillance vessel

Floating oil fence

Breakwater/
secondary dike

There are four methods used to stockpile oil
in Japan – the on-ground tank, in-ground tank,underground rock cavern tank and floating tankmethods. As shown in the diagram to the left,
the Shirashima Base adopts the floating tankmethod.
The special characteristics of the floating tankmethod are as follows:
1. Sea spaces can be effectively used
2. The ground surface area required is small
3. The risks of leakage or dispersal of oil are low*In April 2022 the IEA announced that its member countries were set to release a total of 120 million barrels of oil fromemergency stockpiles to mitigate tensions in and stabilize the international energy market. In response to this move, theJapanese government decided to make available nine million barrels from its national stockpiles and six million barrels fromprivate sector stockpiles, a total of 15 million barrels (second only to the amount made available by the U.S.).

20

A day in the release of national oil stockpiles at the Shirashima National Petroleum Stockpiling Base
We watched closely on-site the release of national oil stockpiles implemented on August 10, 2022, at the Shirashima National
Petroleum Stockpiling Base. The work on this day involved transferring some of the national oil stockpiles to a crude oiltanker. At the frontline that is the place where the work was carried out the operation lasted for around 64 hours and was
executed while carefully checking to ensure that not the slightest error was made.

Guiding thetanker

Attachmentof oil fence

The tanker was moved using

As a precaution against thesix tugboats, which guided it

event of an oil leakage to theinto the sea berth.*sea, a floatable oil fence wasplaced around the tanker.

9:00

12:00

14:30

15:00

Work completed
W h e n a l l t h e c h e c k s w e recompleted the transfer of theoil to the tanker started. It tookaround 64 hours from the transferof the oil to the departure of thetanker from the facility.

16:30

Fixing to thesea berth

Attachment ofloading arm

The net was received from the

The work of attaching the loadingtanker, and the work of fixing

arm*** that send the oil into the tanker.

it to the quick release hook**

The most meticulous attention is paidon the sea berth conducted.

to ensure not a single drop of oil leaks.

* The place where
the tanker ismoored** The equipment
for securingmoored ships*** An arm-shaped
movable pipe

21

Activity Briefing

Oil and Natural Gas
Development

In order to promote the development of oil and natural gas resources by Japanese companies, JOGMEC
provides comprehensive support for oil and natural gas exploration and development projects conductedby Japanese companies and for the Japanese government to strengthen its resource diplomacy.

Background
Oil and natural gas, which account for more than 60% of Japanʼs primary energy consumption, are fundamental energy
sources of the countryʼs industrial infrastructure. As the world's population increases and the demand for energy increases
with economic growth, oil and natural gas will continue to be important energy sources in the future. Amid growing global
instability, maintaining a stable supply of oil and natural gas is extremely important for Japan, which relies on imports foralmost all of its oil and natural gas, from the perspective of energy security.

▲

Japanʼs Crude Oil and Natural Gas Imports by Country (2022)
Others 1.8％

US 1.5％
RussiaKuwait8.5％

Others8.2％

Indonesia 3.5％

4.0%

Qatar
6.5％

Qatar 4.0％

Saudi Arabia
39.2％

Brunei 4.5％

Japan’s Crude Oil
Imports for 2022
Approx.

156.56
million kl

Papua New Guinea
5.2％

US

5.7％

Dependence on the
Middle East:
95.2％

UAE
38.5％

Japan’s LNG
Imports for 2022
Approx.
Russia9.5％

71.99

Australia
42.7％

million tons

Dependence on the
Middle East:
9.4％

Malaysia
16.7％*Created by JOGMEC based on METIʼs Yearbook of Mineral Resources and Petroleum Products Statistics 2022

Overview of Functions
As a specialist organization for securing a stable energy supply, JOGMEC aims to ensure and improve Japanʼs energy security
by assisting Japanese companies to secure the upstream interests of oil and natural gas projects. JOGMEC engages in this byorganically combining its expertise in relation to the following: geological and geophysical surveys; financial assistance; technologicaldevelopment; support for Japanʼs resource diplomacy; information collection and provision; and human resource development.

▲

Flow of Oil and Natural Gas Development and JOGMEC Activities
Financial assistance
Geological andgeophysical surveys

Liability guarantee
Equity capital for hydrocarbon
development and natural gas liquefaction

Equity capital for exploration

Equity capital for asset acquisition

LNG storage investment*

Equity capital for M&A

Flow of Oil and Natural Gas E&P Activities
by Japanese Companies

Preparatory
survey stage

Exploration
stage

Active promotion of resource diplomacy

Development/
production stage………

Storage(transshipment/receipt)

Technological development

Technical training programs
Joint R&D

Collection, analysis, and provision of information

Oil and natural gas producing countries

Strengthening of relationships with oil
and natural gas producing countries

Japanese Government
For details on our functions, open the URL below orscan the QR Code on the right.

https://www.jogmec.go.jp/oilgas/*In June 2020, following the establishment of the Partial Amendments to the Electric Utility Industry Law in order to Establish
a Robust and Sustainable Electricity Supply System Law including the partial revision of the Act on the Japan Oil, Gas andMetals National Corporation, the obligation to invest in LNG storage projects and liability guarantee business was added.

22

GoalsJOGMEC is aiming to contribute to the “raising of the oil and natural gas independent development ratio to 50% in 2030”
cited as a governmental goal in the Sixth Strategic Energy Plan announced in 2021. In the oil and natural gas development
segment we have been pursuing initiatives with the key target stated in the Fourth Mid-term Target that “independently
developed rights equivalent to one million barrels of oil per day by 2022 will be secured with the aid of JOGMEC.”

Achievements
Financial AssistanceIn fiscal 2022, as a mid-to-long-term initiative with a view to the year 2023, JOGMEC provided enthusiastic consultation forthe screening and creation of support opportunities aimed at the adoption of several confidential talk support matters. In
addition, we started to finance a mining project in the United Arab Emirates, continuously provide financial assistance for
ongoing projects, and implemented project assistance through consultation.

Furthermore, since there is a need to respond to the diversification of business models in resource
development and the problem of climate change, our assistance system for oil and gas projects implementing
decarbonization measures was revised.

Total equity capital at ﬁscal year-end

10,000

Number of companies at ﬁscal year-end

9,000
8,000

6,000

50

5,000
4,000
3,000

29

34

38

41

53

53

55

56

58

57

60

60

100

9,000

90

8,000

80

7,000

70
60

45

50
40
30

22

Balance (100 million yen)

Balance (100 million yen)

7,000

Outstanding Balance for Liability Guarantees and Number of Companies▲▲

Accumulated Amounts of Equity Capital and Number of JOGMEC Supported Companies

5,000

0

3,600

3,985

5,118

5,464

5,888

6,363

7,299

8,304

8,719

9,461

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2,650

Fiscal Year* Accumulated number of JOGMEC supported companies at fiscal year-end (including companies that have been only adopted)* With regard to merged companies, they are counted as a single company from the fiscal year of merger.

11

12

11

10
9

9

10

9

9

9

10
8

8

8

4

0

2,454

14

13

2,000
1,000

1,594

13

6

10

1,213

13

3,000

20
942

13

16

4,000

1,000

840

18

Number of companies at ﬁscal year-end

6,000

2,000

0

Outstanding balance for liability guarantees at ﬁscal year-end

2
2,370

2,445

2,440

2,509

5,254

6,879

8,234

8,298

8,185

8,236

6,461

4,428

4,799

4,862

4,777

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0

Fiscal Year

* Number of companies subject to liability guarantees at fiscal year-end (including companies that have been only adopted)*The amounts shown are in rounded off units of 10 million yen.

Resource Diplomacy and Technological Development
By working on multiple advanced projec t s contributing todecarbonization, JOGMEC is striving to acquire new technologies andstrengthen collaboration with the relevant nations towards therealization of carbon neutrality by 2050.
For example, JOGMEC has concluded its first ever- —including the era
when it was the Japan National Oil Corporation— MOC with Saudi
Aramco, and is pursuing possibilities for cooperation in general
SludgeCentrifugal separation equipment used in verification testingenergy development fields inclusive of oil and natural gas.
Furthermore, with regard to technical development JOGMEC has succeeded in the verification testing of crude oil sludge
reduction technology by recovering useable oil content from the sludge accumulated in oil tanks in Abu Dhabi (sludge is a
mixture of oil, water and solid substances that sink and collect at the bottom of oil tanks, and is dealt with as industrial
waste) and enabling sludge reductions of over 50% the hitherto volumes.

Collection and Provision of Information
JOGMEC is conducting the provision of expert information responding to theworld energy transition including the international energy situation that haschanged dramatically since Russiaʼs invasion of Ukraine, and market trends suchas the soaring spot price of natural gas and LNG.
Specifically, at the online trend briefings we hold each month we analyze theimpact on crude oil and natural gas markets of sanctions on Russia, trends in
China that has emerged as the nation with the largest energy demand in theworld, decarbonization policies and projects in oil producer nations, and provide
in-depth information on the latest topics. On our dedicated website we also
publish reports compiled from a wide perspective and centering on factors ofgreat interest to sector stakeholders. In addition, we are continuing to increase
our LNG information content, and have started to publish weekly reports on thelatest trends in the wildly fluctuating prices of the worldʼs natural gas and LNG inboth English and Japanese.

JOGMEC provides information on oil andnatural gas resources through its Oil andN a t u r a l G a s R e s o u rc e s
Information website. To accessthe website, open the URL
below or scan the QR Code.

https://oilgas-info.jogmec.go.jp/

23Activity Briefing

Metal Resources
Development

In order to assist Japanese companies that struggle to secure interest and a stable supply of resources,
JOGMEC provides a wide range of support packages from the exploration project to the development
and production stage.

Background
Japan is heavily reliant on imports for the lionʼs share of the metal resources vital to the manufacture of cars, IT devices,and other products, which form the backbone of Japanʼs industrial competitiveness. However, some metal resources aremined and produced in a limited number of countries. The deepening and remoteness of ore deposits, the reduction of newprospective mining areas, the increase in initial investment for development, and the competition with emerging countries forresources have also made it more difficult for Japanese companies to secure the upstream interests. Moreover, critical mineralssuch as lithium, nickel and rare earths, for which demand is booming due to demand for the realization of a carbon-neutral
society, are surrounded by issues such as fierce competition between companies and countries for the acquisition of rights,
and the increasing oligopoly of certain midstream process nations. There is a rising need for Japan to bolster the supply chain
towards the stable supply of metal resources.

▲

Mineral production rates in each nation by type of mineral
Others
8.5％
Others18.5％

Australia

3.1％

China
14.6％

Lithium

Russia

Total

4.7％

130,000
Chile

tons/year(2022)

30.0％

Australia
46.9％

Russia190,000

Platinum

New Caledonia
5.8％

Australia
6.0％

Total

210,000(2022)(2022)

kg/yearRussia6.7％(2022)

Philippines
10.0％
Others5.7％

Myanmar
4.0％

Russia41.9％

190,000

tons/year

Australia

DR Congo
68.4％

Palladium

Total

Total

3,300,000

4.8％(2022)

Others12.9％
Canada7.1％

NickelCanada

3.9％

Total

tons/year

Others10.5％

CobaltIndonesia
5.3％

15.8％

Indonesia
48.5％

Others
20.3％

US
14.3％

kg/yearRare Earth
Total

300,000
tons/year(2022)

China
70.0％

South Africa

South Africa

38.1％

73.7％

Overview of Functions

Created by JOGMEC based on U.S. Geological Survey (USGS) Mineral Commodity Summaries 2023

JOGMEC provides support to maintain and bolster Japanʼs industrial competitiveness by securing access to metals.
Reliable supplies of these metals are ensured through an effective combination of the “overseas geological survey (joint
venture survey),” “financial assistance,” “technological development” and “collection and provision of information.”▲

Flow of Metal Resources Development and JOGMEC Activities
Support in gaining access to resources
Joint-venture surveys

SurveyFinancial assistance for Japanese companies

Assistance for private exploration(Grants-in-aid for geological surveys
and overseas exploration)

Prospecting

Equity capital and loans for
exploration projects

Liability guarantees for development funds and equity
capital for metal mining

Exploration

Development

Production

Marine mineral resource development
Critical minerals subsidies
Technological development
Collection and provision of information, and resource diplomacy

Japanese Government
For details on our functions, open the URL below or scan the
QR Code on the right.

https://www.jogmec.go.jp/metal/index.html

24

GoalsJOGMEC strove to achieve the key targets set for the Fourth Mid-Term Targets “to identify 750,000 tons of potential
copper reserves and 250,000 tons of potential zinc reserves” in Overseas Geological Survey, as well as “to identify apotential amount of mineral resources equal to around 50 million tons” in seafloor polymetallic sulfide deposits near Japan.

Achievements
Financial Assistance and the critical minerals subsidy system
Through additional investment in the Australian rare earth project adopted in fiscal 2022,
JOGMEC won the first supply agreement for an integrated production network outside a
specified country with regard to rare earths, about which there are concerns over supply
disruption due to the oligopoly of certain countries. In addition, the adoption of an exploration
investment in a South African platinum group project has been completed, which is expected tolead to the diversification of palladium supply sources.
Moreover, following the amendment of the JOGMEC Act in fiscal 2022, processing andsmelting businesses were added to those eligible for liability guarantees for development
funds and equity capital, representing an attempt to accelerate Japanʼs initiatives for securing
metal resources and their stable supply. In addition, with the designation of critical minerals as
specified critical products under the Economic Security Promotion Act, JOGMEC has establishedthe requisite system for work and created a stable supply securement support fund (for mattersrelating to critical minerals) in order to implement grant projects for critical minerals.

300
250

38

200
150

29

31

43

41

41

60
50

38

37

40
28

28

26

23

100
50
0

30

22
10

239 257 269 224 186 164 159 137 108

86

80

62

51

31

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

20
10
0

Balance of Equity Capital Outstanding

800

6

600

5

500

4

400

300

0

8

8 1600700

100Balance in units of 100 million yen
Number of companies subject to liability guarantees at ﬁscal year-end
99Balance (exploration and asset acquisition) in units of 100 million yen
Accumulated number of JOGMEC supported companies at ﬁscal year-end
9 1800900

200

Balance of Liability Guarantees Outstanding▲

Balance in units of 100 million yen
No. of loans Balance in units▲▲

Balance of Loans Outstanding for Overseas Exploration

Signing ceremony for the rare earth project inAustralia

4

5

6

6

6

6

6

5

4

1

3

2

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0

Fiscal Year

600

200

0

7
6

5

800

400

8

7

5 1000188 430 430 430 434 438 441 575 575 575 575 575 734 1

Fiscal Year7

6

6 120042
1

77 1400

3

5

3

3

3

4

3

3

2
1
227 317 574 889 1,025 1,243 1,107 1,025 571 179 167 205 255 209
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2

1

0

Fiscal Year

*Including supported companies taken over from the Metal Mining Agency of Japan (except for Deep Ocean Resources Development Co., Ltd.)*The amounts shown are in rounded off units of 10 million yen.

Strengthening of Relationships with Resource-producing Countries
In order to contribute to the continuous development of resource-producing countries, encourage investment by Japanese companies andacquire interests, JOGMEC is striving to strengthen relationships with these resource-producing countries.
In fiscal 2022 JOGMEC strove to strengthen its relations with African nations, and with the objective of further bolstering cooperation with
the Republic Of Namibia in the fields of metal and carbon-neutrals (hydrogen and ammonia) we concluded an MOU with the Ministry ofMines and Energy. Furthermore, in order to strengthen our relationship with the Democratic Republic of Congo, JOGMEC joined with the
Ministry of Economy, Trade and Industry (METI) to invite the Congolese Minister of Mining to Japan, and hosted a round table session
involving figures in Japanese business and government.
JOGMEC also joined with METI in participating in the Conference on Critical Materials and Minerals (held twice), an inter-governmental
meeting involving Japan, the United States, Europe, Canada and Australia with the objective of exchanging information on policy and R&D
related to critical materials and minerals. JOGMEC is thereby eagerly involving itself
in strengthening relationships across a range of multiple frameworks.

JV surveys and technological development
As an initiative towards the diversification of metal and mineral resources aimed atachieving a carbon-neutral society, JOGMEC has newly launched a joint venture nickel
survey in Canadaʼs British Columbia with the objective of securing stable supplies of thenickel required in battery materials.
In addition, with the objective of securing copper concentrates with a low arsenic
content, we have launched research into the flotation separation of copper concentrates
both including and free of arsenic pursuant to a cooperative agreement with a Chilean
mining company, while in Australia we have since fiscal 2021 been conducting joint
research with the Queensland Government and the University of Queensland and aresteadily pursuing research into the recovery of cobalt from copper mine tailings.

JOGMEC provides information on metals
through its Metal Resources Development
website. To access the website, open the
URL below or scan the QR Code.

https://mric.jogmec.go.jp/

25Activity Briefing

Coal Mining
Development

JOGMEC is working to secure supply sources of coal, which is a baseload power source with stablesupply and economic efficiency and is expected to serve as a regulating power source.

Background
In Japan, almost all of the coal that is consumed by the steel and cement industry, industrial boilers, and so on is imported.
Though global demand for coal peaked in 2013 and has remained flat, the demand is rising in China, India, and Southeast
Asian countries due to increased energy demand driven by economic growth. Regarding international trends in climatechange, the environment surrounding upstream investment in fossil fuels that emit CO2 is becoming more challenging as ESG
investment progresses in developed countries, mainly in Europe and the United States.Due to stricter investment and financing
policies for coal investment (divestment), oil production has reached a plateau, and concerns are growing that supply anddemand will tighten along with the demand increase in emerging economies. While some resource companies and trading
houses are swiftly divesting away from coal, the domination of the prime upstream interests by other resource companies is
accelerating. In addition, European countries are changing their coal policies due to energy supply concerns triggered by thesituation in Russia and Ukraine. The coal market environment has thus been destabilized.

Overview of Functions
JOGMEC supports Japanese companies in the exploration, development, production and other stages of the overseas
development of coalmines to diversify coal sources and increase Japanʼs independent development ratio for coal. Toward
this end, it supports a combination of geological surveys, financial assistance to Japanese companies, technical support andtransfers, and intelligence and information services, resource diplomacy, and human resource fostering.

▲

Flow of Coal Mining Development and JOGMEC Activities

Flow of Coal Mining Development by Japanese Companies

Preparation

Exploration

Development

Preliminary surveys

Basic surveys

Detailed surveys

Development● Assess geological potential● Assess the geological structure● Conduct detailed geological surveys,● Prepare the necessary

for coal by collecting
available geological dataand conducting surface
surveys, geophysicalsurveys, drilling surveys,
and the like.

by conducting surface surveys,
geophysical surveys, anddrilling surveys. Evaluate
available resources based on
actions such as examining thecoal quality and properties.

calculate the expected profits, andmake a decision on whether toundertake commercial production
by taking into account factors suchas the expected production and thenecessary infrastructure and personnel.

infrastructure andconstruct production
facilities for coaldevelopment.

Production
Production● Construct facilities

for expanding thescale of production
and acquire
new interests insurrounding mines.

Overseas Geological Survey

Support to secure rights andinterest

Development feasibility surveys

Financial assistance
Equity capital for exploration

Liability guarantees

Intelligence and information services, technical support
Training programs (human resource fostering), resource diplomacy

Coal-producing
countries
For details on the assistance provided by JOGMEC,
open the URL below or scan the QR code on the right.

https://www.jogmec.go.jp/coal/index.html

26

GoalsIn order to achieve the government target of maintaining Japanʼs independent development ratio of 60% for coal in
2030 as stated in the Basic Energy Plan approved at a Japanese Cabinet meeting in October 2021, JOGMEC set anincrease of the annual coal offtake amount under Japanese companiesʼ control by 3 million tons as one of our key
targets in the Forth Mid-Term Targets, and strove to achieve it.

Achievements
Support for Securing Interests
In the midst of the difficult investment environment surrounding coal, the importanceof general coal as an energy source remain unchanged and coking coal is difficult
to replace as a raw material for steelmaking in the foreseeable future, Therefore,
JOGMEC is pursuing initiatives to diversify supply by mainly focusing on securing
interests of coking coal.

Amid this situation, as an initiative aimed at the stable supply of coal resources toOpen pit mining at Isaac Plains
Japan and the diversification of supply sources, JOGMEC transferred two offtakerights to the Japanese user companies derived from the Isaac Plains coking coal projectin Australia, which we acquired through overseas geological surveys. We also transferred one transaction right to a
Japanese company from the Bac Suoi Lai anthracite project in Vietnam.
Moreover, through financial assistance JOGMECʼs first ever coal project liability guarantees project was implemented. This
project is a coking coal development project in West Virginia in the U.S. Trial production started in fiscal 2022, and it isexpected that in the future it will lead to an independently developed coal offtake amount increase of around one million tons.
Elsewhere, JOGMEC has concluded an MOU with the Colombian government and launched a survey of the nationʼs coalpotential. In addition, we are implementing ten JV survey projects including general coal with the aim of transferring them toJapanese companies. We are also conducting assistance through our subsidies system for mining projects carried out by
Japanese companies, and expect that the annual coal offtake amount under their control will increase due to the rise in resource
volumes. We will continue to work to increase the independently developed coal offtake amount even under the severe
environment surrounding coal, accurately grasp the rapid changes in social conditions, and expand our business to ensure anaffordable and stable supply of coal to Japan.

Initiatives in Environmental Responses Aimed at Low Carbonization
Towards a society equipped with low-carbon technologies, with the theme ofenvironmental countermeasures at mines and in an attempt to reduce the amountof CO2 emissions by the mining industry and related businesses, JOGMEC has
Herbaceous biomass (napier grass)
implemented joint studies with Japanese companies on quantitative evaluations of
CO2 reduction effects of projects to cultivate herbaceous plants at closed mine sites,, and the consideration of the use of biomass is steel making processes and thermal
power co-combustion. In addition to contributing to therehabilitation of closed mine sites, they also advancecarbon neutrality by encouraging the cheap and stablesupply of combustion agents and CO2 reductions at theconsumption point.
With regard to the commercial-size CCS project(CarbonNet) in the Australian state of Victoria that wasplanned with the effective utilization of coal resources inmind, we jointly held a seminar for Japanese companies
with the state government and are providing the latest
information.
Conceptual diagram of the CarbonNet project
Furthermore, in our training programs with Vietnam,
Indonesia, Colombia and Mozambique, we were
JOGMEC provides information on coals throughable to implement face-to-face training for the first
its Coal Resources Information website.
time in three years, pursue initiatives in strengthening
relationships with resource nations, and are seeking to
For details, open the URL
distribute information about coal prices every month
below or scan the QR Codeon the right.
and collect and relay information regarding changes in
the coal policy of each nation.
https://coal.jogmec.go.jp/

27

Activity Briefing

Geothermal Resource
Development

JOGMEC provides comprehensive assistance for the development of geothermal energy
sources in harmony with local communities and the natural environment.

Background
Geothermal power generation is an inexpensive, reliable, and clean source ofbaseload power with low carbon emissions. It has vast symbiotic potential,
especially if the residual heat and hot water from a geothermal power plantcan subsequently be harnessed for local communities. However, Japan does
not utilize this energy source as effectively as is expected due to the long leadtime required for its development and other reasons.

Geothermal resources around the world
Ranking
1

Country
US

Amount of resources(10,000 kW)
3,000

2

Indonesia

2,779

3

Japan

2,347

4

Kenya

700

5

Philippines

600

6

Mexico600

7Iceland580

8

New Zealand

365

9

Italy

327

10

Peru

300

Source: Created by JOGMEC based on the material from theAdvisory Committee for Natural Resources and Energy, Agency
for Natural Resources and Energy (June 2016)

Overview of Functions

JOGMEC promotes the development of geothermal resources by offering a wide range of support from the investigation andexploration stages to the development and construction stages.
For instance, JOGMEC provides Grants-in-aid for surface, drilling and other initial surveys for resources exploration to cover
the high resource risks during the initial stage. JOGMEC also provides support for monitoring, preliminary environmental
assessments, and other development activities to ensure environmentally friendly development. It invests in exploration
drilling and other exploration surveys and provides liability guarantees for development projects such as drilling of production
and injection wells and power generation facility development, thus offering a wide range of financial support.
Besides assistance to geothermal developers, JOGMEC also promotes the discovery of prospective sources by conducting its
own geothermal potential surveys, such as airborne geophysical surveys, surface surveys, heat-flow drilling surveys and boring
surveys, mainly in natural park regions.
In addition, JOGMEC promotes the development of new technologies for the exploration, evaluation, drilling and managementof geothermal reservoirs as well as innovative technologies for geothermal power generation, and organizes training programs,
mainly for junior engineers who are engaged in geothermal resource development.

▲

Flow of Geothermal Resource Development and JOGMEC Activities
Flow of Geothermal Resource Development by Geothermal Developers

SurveyExploration● Subsurface structures● Boreholes are drilled

are assessed by ageological survey,
gravity survey, etc.

to assess subsurface
structures in detail.

Exploration(exploration drilling, etc.)● Small and large

exploration boreholes
are drilled to assess
the steam production
rate to evaluate thefeasibility of sustainable
power generation.

Environmental assessment

Drilling survey

Decision on commercial
development

Geothermal Potential Surveys

Surface survey

Development

Construction

Drilling of production
and injection wells

Installation of power
generation system● Large boreholes are● Pipelines anddrilled to produce
steam for power
generation.

equipment are
installed and a power
plant is constructedaccording to theenvironmental
assessment findings.

Awareness projects
Grants-in-aid for geothermal assessment

Providing financial assistance
Investment in exploration

Liability guarantee for development

Technological development
For details on our functions, open the URL below or scan the
QR Code on the right.

https://www.jogmec.go.jp/geothermal/index.html

28

TargetThe Japanese Government has adopted a policy aimed at tripling the installed capacity for geothermal power
generation by 2030 in line with the Long-Term Energy Supply and Demand Outlook developed in July 2015.
Accordingly, in its Fourth Midterm Targets, JOGMEC has set a key target of establishing at least 65 geothermal survey
projects, including 35 new ones, and worked towards these.

Achievements
Promoting Corporate Support
JOGMEC is enthusiastically providing assistance through a variety of schemes
aimed at contributing to the attainment of the fiscal 2030 energy mix goals.
In March 2023 the Minami-aso Yunotani Geothermal Power Plant in Kumamoto
Prefecture, a JOGMEC subsidy program, went into operation. Furthermore, in fiscal
2022, in response to the project needs of the subsidy programs we implemented
revisions to the system such as reviews of the project timescales, and provided
assistance in 19 regions including three new ones. Among these, surveys advanced
to the stage of confirming fumaroles in five regions including the southern part ofMount Ohmatsukura (Iwate Prefecture), and it is expected that the surveys will now

The now operating Minami-aso Yunotani
Geothermal Power Plant
Source: RENOVA, Inc.

move to the exploratory stage with the aim to evaluate the volume of resources.
In addition, following the adoption of the Mount Katatsumuri Power Plant construction project (Akita Prefecture) as a liability
guarantees project, the operators have officially started on construction work.

Geothermal Potential Surveys
It is said that around 80% of Japanʼs geothermal resources lie within natural parks. JOGMEC has built up a relationship of trustwith the organizations related to the Ministry of Environment and local stakeholders including nature conservation bodies, andis accelerating surveys on the potential within natural parks. In particular, we conducted surface surveys in 30 locations over
the two years from fiscal 2021 (three locations in fiscal 2020), and started boring surveys in eight locations including theDaisetsuzan National Park.
In addition, with regard to the results of previous yearsʼ airborne geophysical surveys and boring surveys we have as of fiscal
2022 provided a total of 390 reports and data to geothermal power developers. The results of these surveys and the effortsof businesses to promote encouraging understanding at the local level are bearing fruit, and three new subsidized projects
have been established.

Technological Development Support
Aiming to address the issues facing geothermal power, namely shortening lead times
and reducing development costs, JOGMEC is conducting technical development. With
regard to the PDC bits* used for geothermal well drilling we enabled a reduction in
the manufacturing costs that had been an issue in their introduction at drilling sites,
achieving a market price, and the devices were first used at drilling sites this fiscal
year. Their ability to exercise the anticipated performance has been confirmed.
Furthermore, the well area DAS-VSP exploration technology** developed with the断層

aim of improving exploration success rates has been implemented for the first time
at a private sector companyʼs worksite.
*Polycrystalline Diamond Compact (PDC) bit fitted as a cutter

断層**Distributed acoustic sensing vertical seismic profile (DAS-VSP) well area exploration technology method:
through the analysis of distributed acoustic sensing vertical seismic profiling using optical fibers, thistechnology the visualization of underground fissure distribution with a resolution in the order of ten meters,

Image diagram of DAS-VSP analysis

which is around ten times the hitherto capability.

29

Activity Briefing

Activity Briefing

Stockpiling

JOGMEC is unfailing in its commitment to acting as the last line of defense for Japanʼs energy andresource security and ensuring a reliable supply of these assets.

Stockpiling

JOGMEC is unfailing in its commitment to acting as the last line of defense for Japan’s energy and resource
security and ensuring a reliable supply of these assets.

Background
Background

Petroleum and LPG are vital sources of energy for our daily lives and the economy. However, the prices and supply of theseresources are easily affected by international politics, economic conditions, natural disasters, and other such factors. Hence,
it is essential that we maintain efcient stockpiling and an agile release capacity.
2
Petroleum
andareLPalwaysgas arepresent
vital sourcesof essential
energy forrare
our metals
daily
Supplyrisks
for thethat1 are used as additives for steel
and special steel as well
lives
and
the
economy.
However,thepricesandsupplyofthese
as for materials used in the manufacture of high-tech products. Metals tend to be distributed throughout regions unevenly.
resources
are ofeasilyaffected
politics, countries
economic or their production may be dominated by a limited number of
Many
types
metalscan bybeinternationalfound in specificconditions,naturaldisasters,
and
other
such
factors.
Hence,
it is countries is also affecting their supply.
companies. The rise of resource nationalism in the producing
essential that we maintain efficient stockpiling and an agile releasecapacity.
Supply risks are always present for the essential rare metals thatare used as additives for steel and special steel as well as formaterials used in the manufacture of high-tech products. Metals
tend to be distributed throughout regions unevenly. Many typesof metals can be found in specific countries or their production
may be dominated by a limited number of companies. The rise ofresource nationalism in the producing countries is also affecting
their supply.
Kamisu National Petroleum Stockpiling Base3

1. Nanao National LPG StockpilingBase
2. Shirashima National Petroleum
Stockpiling Base
3. Stockpiled rare metals

Underground rock cavern tanks of Namikata National LPG
Stockpiling Base

Overview
Overview of Functions
JOGMEC stores and manages strategic rare metals in national
JOGMEC has been commissioned by the Japanese government tostockpilingwarehouses
to prepare
for anybases
emergency
release thatmaintain national
stockpilingbases for petroleum(ten bases)government
andJOGMEChas beencommissionedby the Japanese
to maintainnational
stockpilingfor petroleum(tenbases)and LPG
bases) safely
anda reliable
efficiently
to ensurea reliableenergysupplyin the event
an foremergency.
may
be required
to address
short-term
supplyofrisks
Japanese
LP gas(five bases)
safely(fiveand efficiently
to ensureenergyFurthermore,
JOGMECvarioussurveys,engages in technologicaldevelopment,
and promotesinternational
industry. It also sells
some of its stockpiled
rare metals
to adjust its
supply in the eventof anconducts
emergency.
Furthermore,
JOGMEC
cooperation
andsurveys,
contributions.
addition, it provides
loans to private
for stockpilingsoneeds,
that theyholdings,companies
switch itemsresponsible
and forms according
to market
andconducts various
engages In
in technologicaldevelopment,can
LP gas in orderto ensure proper
stockpiling.
replace old stock.
and purchasepromotes petroleum
internationalandcooperationand contributions.
In
JOGMEC
andloans
managesmineraltypes thatare essential
to Japanese industry, highly susceptible to geographical risks
addition, itstoresprovidesto privatecompanies
responsibleforandof industrial
in national
stockpilingto prepare for any emergency release that may be required
stockpilingso thatimportancethey can purchasepetroleumand LPwarehouses
gas intoaddress
short-term
supplydisruptionsSomeofitsstockpiled
rare
metals are released to adjust its holdings, switch items
order to ensure proper stockpiling.
and forms according to market needs, and replace old stock.

▲

Stockpile
Types
and JOGMEC
Activities
u Stockpile
Types
and Summaryof JOGMEC
Activities
Integrated management of
national stockpiles, etc.

National
petroleumstockpilingbases(10 locations)Tanks leased
from privatecompanies(10 locations)

Grants for joint stockpiling projects
with oil-producing countries(Grants-in-aid)

National stockpiling projects

Private oil companies,
etc.

Private oil companies

National stockpilingwarehouses

National LPG
stockpilingbases(5 locations)

National stockpiles
Petroleum: Target of 90 days of imports(Including half of the petroleum stockpiled
jointly with oil-producing countries)

LPG:

Financial assistance toprivate stockpiling companies(Including loans for consortiums)

Target of 50 days of imports

National stockpiles
Private-sector
Stockpiles
Petroleum: Target of 70 days of
consumption
LPG:

Target of 40 days of imports

Petroleum and LP Gas

Joint stockpiling with
oil-producing countries

National stockpiles(Stockpilingtarget:
Based(Stockpiling target:
Based
on 60
on 60
setgoalsbalanceddays,
setdays,balanced
for eachgoalsresourcefor eachandresource)
item)

Rare metals
For details
ondetails
our functions,open theprovided
URL below
or scan theForon the assistanceby JOGMEC,QR Codeopenon thetheright.
URL below or scan the QR code on the right.

https://www.jogmec.go.jp/stockpiling/index.html
http://www.jogmec.go.jp/stockpiling/30
32

GoalsJOGMEC releases stockpiled petroleum and LPG quickly during an emergency to ensure a stable supply. Furthermore,
it constantly prepares for the prompt purchase, release, and sale of rare metals to address any short-term supply risks.

Achievements▲

Stockpiling of Petroleum and LPG

Stockpiling Bases for Petroleum and LPG in Japan

National petroleum
stockpiling bases

In Japan, about 31.0 million kL of petroleum is stockpiledat ten bases (ca. 42.6 million kL if additional tanks leased
from private companies are included; equivalent to about
137 days of imports). Approximately 1.4 million tons of LP
gas is stockpiled at five bases, which amounts to about 51
days of imports (as of the end of March, 2023).
At each base, safety awareness and skills are enhanced
through the conducting of on-site inspections, training
programs, disaster management drills, and so forth. To
date, these 15 bases have maintained stable and safe
operations with no severe accidents having occurred.

Aboveground andunderground tanks
Underground rockcavern tanks
Floating tanks

National LPG
stockpiling bases

Tomakomai-Tobu
National Petroleum
Stockpiling Base

Aboveground cryogenic
tanks
Underground rockcavern tanks

Kuji National
Petroleum
Stockpiling Base

Nanao National LPG
Stockpiling Base
Fukui National Petroleum
Stockpiling Base
Shirashima National
Petroleum Stockpiling Base

Stockpiling of Rare Metals

Mutsu-Ogawara
National Petroleum
Stockpiling Base

Akita National
Petroleum
Stockpiling Base

Kamisu National LPG
Stockpiling Base

Fukushima
National LPG
Stockpiling BaseRegarding the national stockpiling project for rare metals,
the national basic policy for the stockpiling of metalminerals was established, the target number of days forstockpiling was reviewed, the division of roles between thegovernment and JOGMEC was clarified in determining thetarget number of days for stockpiling, and the requirements
for release were sorted out. Based on the policy, we
purchased and released stockpiled materials in order toachieve the stockpile target. In addition, the stockpilingsystem was adjusted to ensure a better fit with Japanʼs
industrial needs and reinforce the necessary networks.
Through these measures, we have established and maintaina system that enables flexible stockpiling operations.

Namikata National LPG
Stockpiling Base

Kurashiki National LPG
Stockpiling Base

Kikuma National Petroleum
Stockpiling Base
Kushikino National
Petroleum Stockpiling Base

Kamigotou National
Petroleum Stockpiling Base

Shibushi National Petroleum
Stockpiling Base

Steady release of national oil stockpiles pursuant to the Petroleum Stockpiling Act, Etc.
In coordination with the U.S. and other nations, with regard to theearly sell off (oil type switch) planned for national oil stockpiles
and the release of national oil stockpiles through an accord
with the IEA member countries, JOGMEC implemented the safe
and systematic loading and unloading of around 2.16 million klof oil. The release of national oil stockpiles was the first to be
conducted since the stockpiling system started in 1978.

Loading and unloading at Tomakomai-Tobu National Petroleum
Stockpiling Base

31

Activity Briefing

Support for Mine
Pollution Control

Building on its technical expertise and frameworks for mine pollution control, JOGMEC is supporting
environmental conservation in Japan and resource-producing countries.

Background
Abandoned or inactive mines are scattered through Japan.
Projects to prevent mine pollution are underway in someareas, and such measures are still required elsewhere.
Wastewater from these abandoned mines may containhazardous substances that can cause water pollution andadverse effects on the surrounding environment, so they
may require treatment almost indefinitely.
Japan has some of the worldʼs leading expertise andframeworks for mine pollution control. JOGMEC promotes
environmentally friendly measures to prevent suchpollution in resource-producing countries by sharing usefultips and information.

The new neutralization facility at the abandoned Matsuo Mine

Overview of Functions

32▲

In order to ensure reliable mine pollution control
measures by local governments and businesses,
JOGMEC provides consulting services at the requestof these project partners. It also conducts research
into and provides guidance on the development ofrelevant control policies. Additional technical support
is provided for the conducting of pre-construction
surveys, design development, and construction work toprevent mine pollution. In addition, it strives to maintainand upgrade its mine pollution control technologies
through various initiatives, including effective measuresagainst the sources of mining pollution to reduce
the overall costs of preventive projects, research anddevelopment into mine wastewater treatment and the
conducting of training programs and exchange sessions
for its project partners.
JOGMEC also provides loans as financial support
for these project partners to ensure the reliable
implementation of mine pollution control activities. It
manages the reserves of private companies to facilitate
construction work aimed at preventing pollution
as well as funds for continuing mine wastewater
treatment.

Mine Pollution Control Framework and JOGMEC Activities

Grants-in-aid (3/4)*

Japanese Government
Technical supportand information

Reserve funds

Grants-in-aid (3/4)

Operational
subsidies, etc.

JOGMECTechnical
supportFunds

Operationalmines

FinancialsupportTechnical
supportAbandoned orinactive mines

Assigned responsibilities
for mine Pollution Control

Local governments (1/4)
Mine pollution
control

Abandoned mines
No assigned responsibilities
for mine Pollution Control*Covering the treatment of mine wastewater from abandoned mines that are
naturally polluted or polluted by parties other than project partners. One-fourth of
the grant-in aid will be provided by the local government.
For details on our functions, open the URL below or scan the
QR Code on the right.

https://www.jogmec.go.jp/mp_control/index.html

GoalsWith the aim of protecting the health of citizens and preserving their living environment, JOGMEC is offering technicalsupport to local governments and developing technologies to reliably operate and manage the new neutralization
facility at the abandoned Matsuo Mine, eliminate accidents, and significantly reduce the costs involved in treating
mine wastewater. JOGMEC also runs training programs for its project partners to maintain and upgrade the skills
needed to prevent mine pollution in Japan.

Achievements
Initiatives at the New Neutralization Facility at the Abandoned Matsuo Mine
JOGMEC manages the operation of the new neutralization facility at the abandoned
Matsuo Mine on behalf of Iwate Prefecture.
In fiscal 2022, JOGMEC followed initiatives towards lowering operational outage
risks at aging facilities and reducing costs through the introduction of highly efficientequipment. Through appropriate responses to increases in untreated water due tothe impact of snow and long precipitation etc. (in early September 2022 an incident
occurred in which the increase in the volume of water treated rose from the usual
two-line operation (12 tones/min and 9 tons/min) had to be treated with the three-line
operation)), even during the COVID-19 pandemic, we worked
around the clock 365 days a year and continued to maintainour record of incident-free operation since operations started.
As a result, we made a huge contribution to the purification of
the Kitakami River and the protection of the living environment
along its downstream areas.

The New Neutralization Facility at the Abandoned Matsuo Mine in WinterConfluence of the Matsu River and the Kitakami River in 1974 (left) and 2009 (right)

Technological Development
Cost is a significant issue in treating mine wastewater containing heavy
metals. To reduce this cost, JOGMEC is developing technologies fornatural wastewater treatment (passive treatment) using sulfate-reducing
bacteria, and we have obtained a patent for a process using rice bran andrice husks. At the abandoned mine site, an actual size verification test set
at a water treatment volume of 100L/min started in July 2020, and it wasdemonstrated over the space of several years that even including theharsh winter periods it is possible to stably remove metal using sulfatereducing bacteria. Furthermore, aiming at horizontal deployment in otherabandoned mines JOGMEC is promoting study and research regarding
the development of processing technologies suited to the characteristics
of each type of wastewater, and steadily pushing ahead towards thecommercialization of this technology.

Discharge
Anaerobic
reaction tank

Iron oxidation tankMine wastewater
Passive treatment demonstration test equipment

Technical Support for Resource-producing Countries
Based on the MOU concluded with the Peruvian Ministry of Energy and
Mines, JOGMEC developed a cooperative project for the prevention ofmining pollution in Peru over a 12-year period from 2008 to 2019. As
a result, the Peruvian government has made significant progress in theprevention of mining pollution, including the implementation of mining
pollution prevention works by the Peruvian government itself. In fiscal
2022 we horizontally deployed our support experiences in Peru to thePhilippines, a resource-rich nation of importance to Japan, providing
government employees involved in mine pollution with on-the-job (OJT)
training regarding the drainage survey methods that form the basis ofmining pollution countermeasures formulation, and seminars on mining
pollution in the Philippines and Japan, thereby contributing to improved
knowledge among those working on-site.

The local OJT in the Philippines

33

Activity Briefing

Transitional Functions
Related to the Coal Industry

JOGMEC carries out transitional functions related
to the coal mining industry, which is positioned as atransitional measure for domestic coal policy.

Background
By the Act on the Rearrangement of Relevant Acts Upon Completion of the Structural
Subsidence
Adjustment of the Coal Mining Industry, the rationalization of the coal mining industry
through the Act on Temporary Measures Concerning the Structural Adjustment of
the Coal Mining Industry and so on, and the abolition of the Act on Restoration andCompensation for Mining Pollution at the end of 2001 were stipulated, along withtransitional measures. Of these, the work related to the restoration and compensationof mining pollution was continuously carried out by the New Energy and Industrial
Drift
Technology Development Organization (NEDO).
Conceptual diagram of mining pollution phenomenon
By the Act for Partial Amendment of the Act Concerning Securing Oil Reserves, etc.
for Dealing with Oil Supply Shortages in the Event of a Disaster, which came into effect in September 2012, the remaining
transitional functions related to the coal mining industry has been handed over to JOGMEC from April 2013.

Overview of Functions
JOGMEC is engaged in the following transitional functions related to the coal mining industry, which are positioned astransitional measures under the domestic coal policy that ended in 2001.
1. Management of formerly
owned mining areas●Restoration and compensation forshallow subsidence; slag heap
disaster prevention work and mine
wastewater countermeasuresfrom the perspective of preventing
mining pollution

2. Loan redemption●Operations related to redemptionof loans such as past modernization(Loan operations ended in fiscal
2001)

3. Management of mining pollution
compensation collateral

4. Supervision ofdesignated entities●Management and payment ofmining pollution compensation
reserves and deposits (deposits
held by a depository) accumulated
by mining rights holders as
collateral for mining pollution
compensation● Supervision related to fundwithdrawal approval work basedon the conditions for granting
subsidies for fund creation issued
in fiscal 2001

Achievements
Management of Formerly Owned Mining Areas
Through the effective and efficient
implementation of the management offormerly owned mining areas JOGMEC
is striving to protect the assets of thoseliving in the formerly owned areas andconserve their local living environment.
With regard to the shallow subsidence
occurring in the formerly owned mining
are a s, JO G M E C ha s t aken s a f e t y(Fukuoka Prefecture)(Fukuoka Prefecture)(Fukushima Prefecture)countermeasures to prevent falls andDamage due to shallow subsidence
swiftly responded by carrying out repair
work. In addition, with regard to the responses against the shallow subsidence occurring around residential districts, with theuse of fluidization treatment materials that were successfully used during the road collapse incident in front of Hakata Stationin Fukuoka Prefecture, we have in a short time completed the restoration treatment of housing located even on small landplots without any need to dismantle houses.
With regard to the slag heaps on formerly owned mining areas, in an attempt to prevent mine pollution and swiftly andappropriately respond in the event that mine pollution occurs JOGMEC implemented surveys including those of the slag
heaps that were regarded as having the minimal risk of collapse, conducted the renewal of basic information on the local
environment and changes in the shape of slag heaps, and has strived to conserve the local living environment. Furthermore,with regard to the facility treating the wastewater of the abandoned Matsuoka Coal Mine, in order to reduce the sludge
that becomes attached to conduits we have held study groups with external organizations, and compiled cheap and stable
methods and a verification test plan.

Loan redemption
With regard to JOGMECʼs loan redemption business,finance agreements have been concluded and we aresystematically pursuing initiatives towards the steadyrecovery of funds. In fiscal 2022 the five-yearly review ofthe finance agreements was conducted to optimize thepayback plans and recovered funds.
Slug heap survey (Fukushima Prefecture) Abandoned Matsuoka Coal Mine wastewater
treatment facility (Fukuoka Prefecture)34

History〈Metal Mining Agency of Japan〉
May 1963:
May 1964:
July 1973:

Established the Metallic Minerals Exploration Financing Agency of Japan
Renamed the Metallic Minerals Exploration Agency due to the addition of domestic geological surveying
Renamed the Metal Mining Agency of Japan due to the addition of mining pollution prevention〈Japan National Oil Corporation〉
October 1967:
June 1978:
February 2004:

Established the Japan Petroleum Development Corporation
Renamed the Japan National Oil Corporation due to the addition of national petroleum stockpiling
The work of the Japan National Oil Corporation was limited to operations such as asset disposal.
Other exploration and development support operations (financial assistance operations are limited
to investment), technology development operations and stockpiling operations (national stockpiling
integrated management) succeeded to JOGMEC when it became an independent administrative agency.

〈JOGMEC〉
July 2002:

The Act Concerning the Abolition of the Japan National Oil Corporation Act and the Metal Mining
Agency of Japan Act and Act on the Japan Oil, Gas and Metals National Corporation were enacted andpromulgatedFebruary 2004:
Established the Japan Oil, Gas and Metals National Corporation
2005:
The Nanao National LPG Stockpiling Base (July), Fukushima Namikata National LPG Stockpiling Base
(September) and Kamisu Namikata National LPG Stockpiling Base (December) were completed insequence.
April 2007:
Regarding investment and loan guarantees related to oil development, the upper limit for support was
raised to a maximum of 75% for projects that meet certain conditions, and a project for supporting
uranium exploration was started.
As above:
Reorganized the headquarters into departments
April 2008:
Start of the 2nd mid-term target period
July 2008:
Opened the Geological Remote Sensing Center in Botswana
February 2009:
Started financial support for iron ore exploration and development
May 2010:
Enactment of the Act for Partial Amendment of the Japan Oil, Gas and Metals National Corporation
Act, related to the addition of investment for asset acquisition of metal minerals and the addition ofoperations covered by government-guaranteed long-term loans (Promulgated in June, and enforced inJuly)
May 2011:
Moved our main office to Tokyo
January 2012:
Completion of the ocean resources survey vessel Hakurei
August 2012:
Enactment of the Act for Partial Amendment of the Act Concerning Securing Oil Reserves, etc. for
Dealing with Oil Supply Shortages in the Event of a Disaster(Promulgated and enforced in September)
September 2012: Started coal development and geothermal development projects
March 2013:
Completed the Kurashiki National LPG Stockpiling Base and Namikata National LPG Stockpiling Base
April 2013:
Start of the 3rd mid-term target period
As above:
Established the Coal Asset Management Department and Kyushu Branch due to relocation of thetransitional functions related to the coal mining industry
April 2014:
Reorganized the Management Department and Technology Department and established theAdministration and Training Department and Methane Hydrate Research and Development Group.
November 2016: Enactment of the Partial Amendment of the Japan Oil, Gas and Metals National Corporation Act,
related to the addition of support functions for corporate acquisitions by upstream oil and natural gas
development corporations (Promulgated and enforced in November)
April 2018:
Start of the 4th mid-term target period
February 2019:
Opened the Johannesburg Office in South Africa
October 2019:
Completion of the 3-D seismic survey vessel TANSA
June 2020:
Enactment of the Act for Partial Amendment of the Electricity Business Act, etc. for the Purpose of
Establishing a Robust and Sustainable Electricity Supply System (Promulgated and enforced in June)
April 2021:
Established Carbon Neutral Promotion Headquarters
May 2022:
Enactment of the Economic Security Promotion Act (Promulgated in May and enforced in August)May 2022:
Enactment of the Partial Amendment of Act on Rationalizing Energy Use and Other Acts in Order toEstablish Stable Energy Supply and Demand Structure (Promulgated in May and partially enforced in
November)November 2022: Addition of expanded financial assistance functions for the production and storage of hydrogen andammonia and CCS, and geological structure survey work for offshore wind power.
Based on the addition of work etc. JOGMEC changed its official name.
It also changed its English name to “the Japan Organization for Metals and Energy Security.”
January 2023:
Addition of emergency LNG procurement business and stable supply securement support business inaccordance with the Economic Security Promotion Act.

35

Our Approach to SDGs

Our Approach to

SDGs

Environmental
Conservation Activities
Related to Resource Business

JOGMECʼs business activities in the field of energy
and resource development involve environmental risks
and industrial health and safety risks.
With the global circumstances surrounding resourcesand energy having changed greatly, there is a growing
social momentum for the creation of a sustainable
society. In 2015, the United Nations adopted 17
Sustainable Development Goals (SDGs) that are to
be worked on globally with the aim of realizing asustainable society worldwide.
JOGMEC will set out principles that underpin its
actions based on the SDGs, which all of its directors
and employees should be aware of, to develop an
organizational climate that encourages constantimprovement and growth by accurately responding to
the changing environment and circumstances.

As an institution that carries out its business using natural resources,
JOGMEC has been actively disclosing environmental information since theprevious fiscal year to fulfill its accountability responsibilities and provide
useful information to all stakeholders. To report its initiatives for realizing
a sustainable society in a future-oriented manner, JOGMEC publishes its
environmental reports in accordance with the Environmental Reporting
Guidelines (2018 version).

For information on JOGMECʼs initiatives for achieving the SDGs, open
the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/about/about_jogmec_01_000018.html

36

Empowermentof All People

JOGMECʼs Approach to
SDGs

Measures Aimed at
Tackling Climate Change andContributing to the Establishmentof a Recycling-Based Society

Ensuring a Stable Supplyof Energy and Resources
to Support Industry andEveryday Life

Regional Revitalization
through Partnerships
with Stakeholders

37

Our Approach to SDGs

TOPIC 3

Amazing
CCS

Japan CCS Co., Ltd.

What Is CCS Technology?
CCS is the abbreviation for “carbon dioxide capture and storage,” a technology for separating, capturing and storing CO2.
By separating, capturing and storing the CO2 emitted at facilities where decarbonization is difficult such as thermal power
stations, oil refineries, steelworks, chemical plants and garbage disposal facilities, and storing this CO2 underground in astable geologic stratum called a “reservoir,” this technology attempts to greatly reduce the CO2 emitted into the atmosphere.
As a technology that is essential in the attainment of carbon neutrality, R&D, testing and operation of CCS is being carriedout all over the world.
The utilization of the separated and collected CO2 is called “CCU.” It is also known as “carbon recycling” and if, for example,
chemical materials such as methane are created by causing a chemical reaction between the hydrogen obtained fromrenewable energies and the separated and captured CO2, this process be used to manufacture chemical products. It is atechnology that prevents atmospheric emissions of CO2 by recycling it as a raw material.
Furthermore, CCU is not limited to the separation and capture of CO2 and its storage in reservoirs; it also includes theconcept of effectively utilizing through injection. In the area of renewable energies, by injecting separated and captured CO2
into the oil productive strata of oil fields it can be used in technologies that make the recovery of oil easier such as CO2enhanced oil recovery (CO2-EOR).

▶ Definitions of CCS, CCU and CCUS

38

CCS

The separation and capture of CO2, and its stable trapping in underground reservoirs

CCU

The separation and capture of CO2, and its use as a raw material in the production of chemical
products and fuels, and effective utilization using CO2-EOR. Also known as ʻcarbon recycling.ʼ

CCUS

A term combining CCS and CCU

Initiatives in Japan too! The start of technical developments for blue ammonia production
In 2022, together with INPEX Corporation, JOGMEC launched

Hydrogen power generation

Minami-Nagaoka
Gas Field

integrated demonstration experiments on the use of CO2 injection inclean hydrogen and ammonia production and depleted gas fields inalturThis is the first initiative in Japan in clean hydrogen and ammonia

Na

Hydrogenproduction

eli

tur

Kashiwazaki City, Niigata Prefecture.
production. In addition, since this demonstration experiment uses

Pip

Na

al

ne

ga

s

Ammonia
production

asgHigashi-Kashiwazaki
Gas Field
Hirai areaclean hydrogen and ammonia from domestically produced natural
gas it is important from the perspective of Japanese energy security,and heighten the significance of domestic natural gas fields.

l gas

Natura▶ Demonstration experiment image

The start of CO2 injection in Indonesia
In October 2022 JOGMEC teamed up with PT Pertamina

increased recovery of oil from the Jatibarang onshore(Persero) and PT Pertamina EP (PEP) to conduct CO2

oil field in Indonesiaʼs West Java, and implementing

injection with the twin objectives of implementing

underground storage of CO2. This project is the firsteffort by Pertamina and PEP to inject CO2 in a depleted
gas field in Indonesia. From the perspective of Indonesia
it will be a major step in increasing oil production andreducing CO2 emissions using the CO2-EPR technology,
one of the CCUS techniques. The project is underway as
a part of the METI-led Asian Energy Transition Initiative(AETI), and is an effort to contribute to the creation of a

▶ CO2 injection site at the Jatibarang onshore oil field in Indonesiaʼs

CCUS network across Asia at large.

West JavaA world-first! JOGMEC published the Handbook for CCS Carbon Credits
With the objective of encouraging the diffusion of carbon credit
creation, which improves the economic viability of CCS projects,
JOGMEC has created and published the Handbook for CCS Carbon

Please take a look

Credits: Workshop report on “Global Carbon Market and CCS:

using the images or

Towards ASEAN Decarbonization.” The handbook is based on the

QR code.

content of the international workshop on Global Carbon Market
and CCS: Towards ASEAN Decarbonization that was jointly held on
January 25-26, 2023 by METI and the International Emissions Trading
Association (IETA). It is the first publication in the world to compile
basic information on CCS carbon credits to the latest international
trends, and will contribute to the construction of an systematic▶ Handbook for CCS
Carbon Credits

infrastructure for the social implementation of CCS.

39

Our Approach to SDGs

Environment
JOGMEC sets specic targets and steadily achieves them with the aim of realizing a sustainable
society by responding to climate change.

JOGMECʼs Most Signicant Environmental Challenge: Climate Change
In promoting the transition to a sustainable society, the international community is experiencing rapidly changing trends in
its initiatives to address climate change, such as the creation of the Oil and Gas Climate Initiative (OGCI) in 2014 and theenactment of the Paris Agreement in November 2016. JOGMEC, whose mission is to secure a stable supply of oil, naturalgas, coal and other fossil fuels, is required to continue to comply with enhanced international environmental regulations aswell as various frameworks and regulations.
JOGMEC has recognized climate change as its most significant environmental challenge. In light of this, we will provide
useful information to all stakeholders by assessing the importance and priority of information in environmental information
disclosure.

Materiality Identification Process
To determine which environmental challenges should be considered significant, JOGMEC will clearly identify the importanceand priority of environmental information and actively disclose such information according to the following process.

Examination of how JOGMEC is involved in SDGs
Formulating JOGMECʼs initiatives for achieving the SDGs
Reviewing the environmental impacts of business activities
Identifying significant environmental challenges

40Commitment to Climate Change
Organizational Structure
Establish Energy Management Regulations within the organization and assign an Energy Management Control Officer
and an Energy Management Planning Promotion Officer. Continue to monitor energy consumption concerning energy
conservation activities and CO2 emissions.

Overview of Energy Management Organization
Chairman & CEO
Energy Management
Control Officer
Energy Management Planning
Promotion Officer
General Coordination
Department
Petroleum & LPG Stockpile
Management Department
Safety, Environment &Engineering Department

Rare Metals Stockpile
Department

Metals Environment
Management Department

Metals Development
Department

Technology &Research Center

Kyushu Branch
OfficeOrganizations Subject to Environmental Data Monitoring

Petroleumstockpiling bases(Business Category 1)＋

LPG stockpiling bases(Business Category 2)＋

Headquarters,
offices, etc.

(Business Category 3)

JOGMEC quantitatively captures environmental data such as energy usage for all domestic offices.

Environmental Management
JOGMEC implements environmentally friendly initiatives while focusing on cooperation between the Management Unitsand each of its business departments to conduct environmental management as below.

Management Department, Petroleum &LPG Stockpile Management Department

・Formulation of various action policies and plans

Whole organization(Management department & each business division)・Promotion of environmental management

Energy management supervisor &energy planning advocate

Management Department, Petroleum &LPG Stockpile Management Department

・Review of various energy usage records of the entire organization

・Monitor the energy usage of the entire organization

41

Our Approach to SDGs

Environment

Rationalizing Energy Consumption
Energy Consumption
Based on the Act on Rationalizing Energy Use and Transition to Non-Fossil Energies, Etc. JOGMEC has been designated asa “Specified Business” because the annual energy consumption of all of its domestic offices and national stockpiling bases(petroleum and LPG) whose operations are outsourced by the Ministry of Economy, Trade and Industry totals more than 1,500
kL of crude oil equivalent. Having developed its “Policy on JOGMEC Energy Saving Initiatives,” JOGMEC is promoting rationalenergy use.

Trends in Energy Consumption (Crude Oil Equivalent kl)
26,50026,00025,50025,00024,50024,00024,15023,922

23,50023,497

23,761

23,00022,97722,500

2018

2019

2020

2021

2022

Environmental Performance
Under the Act on Rationalizing Energy Use, a goal of reducing energy intensity by aimed at reducing the total amount ofgreenhouse gas emissions an annual average of more than 1% over a five-year period has been set. JOGMEC reduced its
energy intensity by more than 1% in fiscal 2022. In addition, its energy intensity was reduced to 99.8% year-on-year (estimate).
Going forward, JOGMEC will continue its efforts to rationalize its energy use across the entire organization, as well.

Year-on-Year Trends in Energy Intensity (%)
Fiscal2017年度
2018

92.7%
95.3%

Fiscal 2019

97.5%

Fiscal 2020

98.8%

Fiscal 2021

97.1%

Fiscal 2022

99.8%

The Business Operator Classification Evaluation System divides reduction plan. business operators who submit periodical
reports to the government into four classes (S, A, B, or C), and JOGMEC has been classified as Class S for fifth consecutive
years due to its promotion of energy-saving activities at stockpiling bases and other facilities. JOGMEC is expected to win aClass S rating again for its fiscal 2022 results.

Fiscal 2018 results

Fiscal 2019 results

Fiscal 2020 results

Fiscal 2021 results

Fiscal 2022 results (estimate)

S

S

S

S

S

For details on the business classification evaluation system, please see the website of the Agency for Natural Resources and Energy of
the Ministry of Economy, Trade and Industry.

（https://www.enecho.meti.go.jp/category/saving_and_new/saving/enterprise/overview/institution/）42

Global Rationalizing Energy Consumption Warming Countermeasures
CO2 Emissions
The CO2 generated from business activities is calculated based on the actual energy consumption of each organization
subject to environmental data monitoring. In fiscal 2022, JOGMEC successfully reduced its overall CO2 emissions̶including
those from petroleum stockpiling bases (Business Category 1) and LPG stockpiling bases (Business Category 2)̶to about
94% year-on-year.

JOGMECʼs Overall CO2 Emissions (t-CO2)
65,00060,00055,03955,00052,11250,00049,48649,733

46,69445,000

2018

2019

2020

2021

2022

Greenhouse Gas Emission Reduction Plan
To address the ongoing challenge of reducing greenhouse gas emissions, JOGMEC developed an “Action Plan forGreenhouse Gas Emission Reduction in JOGMEC Operations.” This plan is Under the Energy Saving Act, a goal of reducing
energy intensity by aimed at reducing the total amount of greenhouse gas emissions generated directly from JOGMECʼ
s administrative and business activities by 10% compared to the fiscal 2013 level by fiscal 2030. In fiscal 2018, JOGMEC
achieved the target value of the emission.

Trends in CO2 Emissions (Compared to Fiscal 2013)％
110

JOGMECʼs fiscal 2030 target(10% reduction)
100

★

90

80

70

60

2013

2014

JOGMEC (Overall)

2015

2016

2017

Petroleum stockpiling bases

2018

2019

LPG stockpiling bases

2020

2021

2022

Domestic offices

For details on the Action Plan, open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/disclosure/others_announcement_001.html

43

Our Approach to SDGs

Environment

Environmental Performance Report
Example Standards● Standards for turning off unnecessary power supplies

JOGMEC reduces the power consumption of officeautomation equipment by requiring its staff to turn off
their PCs when they leave the office or go out, turn off
their PC monitors when they leave their desk, and avoid
using screen savers.
In addition, it saves energy by adopting measures suchas turning off lights during lunch breaks and using theminimum necessary lighting during overtime hours.
● Standards for air conditioning temperatures

Copy Paper Consumption
40,00030,00020,00010,00014,732

18,274㎏㎏

17,882㎏

0

Fiscal 2020
Fiscal 2021
Fiscal 2022
In summer and winter, JOGMEC frequently adjusts theoffice space temperature to maintain it at an appropriate
level based on the indoor temperature recommended
by the Cabinet Meeting on Promoting Energy and Resources Conservation while also requiring its staff to adjust theirclothes appropriately.

● Standards for garbage separation

JOGMEC is working to reduce the amount of garbage generated at its offices by promoting garbage separation andrecycling.
● Standards for paper use

JOGMEC manages the amount of paper used for meetings and other work appropriately and strives to reduce theamount of paper that it consumes by using projectors and tablet devices instead.
In principle, it uses double-sided printing or the reverse side of used paper for internal or personal documents.
● Standards for keeping the office tidy and well organized

In addition to keeping its office space well organized, JOGMEC prohibits the use of multi-outlet adapter connections toprevent accidents and places waste paper recycling boxes near photocopiers to encourage staff to use the reverse sideof used paper.

Green Purchasing Report
The following provides a summary of the purchasing results for eco-friendly goods in fiscal 2022.
1. Purchasing status of designated procurement items
Most set targets for designated procurement items have been achieved, but some have not hit 100%.
2. Purchasing status of eco-friendly goods other than designated procurement items
For eco-friendly goods other than designated procurement items, JOGMEC has achieved 100% procurement that meetsthe following criteria when, for example, procuring tape cartridges for label makers: recycled plastic accounts for no lessthan 50% of the weight of the total plastic used or systems have been established for the collection of used cartridges.
3. Other environmental considerations
In addition to encouraging businesses that deliver goods, services, and public works contractors to promote green
purchasing in accordance with the procurement policy, we also encouraged businesses to use the vehicles specifieed in
the procurement policy when delivering goods. In addition to meeting the evaluation criteria specied in the Basic Policy,
JOGMEC has endeavored to procure products with a low environmental impact wherever possible by using existing
information, such as Eco-Marks, depending on the items procured.
4. Evaluation
Some of the designated procurement items that JOGMEC procured failed to achieve 100% of the targets because it
was sometimes unable to purchase eco-friendly goods taking into account the business performance specications. In
general, however, it achieved favorable results. Regarding the procurement of eco-friendly goods other than designatedprocurement items, it is being steadily implemented in accordance with the procurement policy.
In fiscal 2023, JOGMEC will make further efforts to achieve these targets.

44

Fiscal 2022 Results
Examples items

Total number of
items

Items procured
from itemson the left

Paper

Copier paper, coated printerpaper, color printing paper

7

6

2

1

Stationery

Mechanical pencils, ballpoint
pens, erasers, adhesive tape

85

52

46

24

Office furniture, etc.

Chairs, Desks, shelves, storage
furniture, whiteboards

10

7

6

0

Imaging equipment,
etc.

Copiers, multifunction copiers,
printers, ink cartridges

10

5

5

0

Computers, etc.

Computers, magnetic disk
drive units, displays

4

4

2

1

Office equipment,
etc.

Paper shredders, digital
duplicators, electronic calculators

5

4

4

0

Mobile telephones,
etc.

Cellular phones, PHS,smartphones

3

2

1

0

Electronic home
appliances

Electric refrigerators, etc., television
receivers, microwave ovens

6

4

4

0

Air conditioner, etc.

Air conditioners, gas heatpump air conditioners

3

1

1

0

Water warmers, etc.

Heat pump electric water heaters,
gas water heaters, oil water heaters

4

0

0

0

Lighting

LED lighting equipment,
fluorescent lamps

4

2

1

0

VehiclesPassenger cars

8

1

1

0

Fire extinguishers

Fire extinguishers

1

1

1

0

Uniforms and work
clothes, etc.

Uniforms, work clothes,
shoes

4

4

2

1

Interior fixtures andbedding

Curtains, woven carpets,
blankets, comforters

11

1

1

0

Work gloves

Work gloves

1

1

1

0

Other fiber products

Tents for gatherings, blue
poly tarps, mops

7

2

1

0

Equipment

Solar power generation systems, telework
licenses, online conferencing systems

10

1

1

0

Disaster preparedness
stockpiles

Food and drink emergency
reserves, pregelatinized rice

10

6

6

0

Public-works
projects

Embankment materials, asphalt
compounds, roadbed materials

70

13

13

−

Services

Energy-saving diagnoses, printing, transportationand delivery, laundry and dry cleaning

21

9

6

1

Garbage bags andothersPlastic garbage bags

1

1

0

0

285

127

105

28

Field

Total

Number of items that fully Number of procured items that
achieved the targets for themeet higher criteria than thedesignated procurement items specified evaluation criteria

・In principle, the procurement targets for each of the designated procurement items were set to 100%.
・Any failure to meet the relevant targets was due to there being no products that met the required specifications, etc.

45

Our Approach to SDGs

SafetyEnsuring Safety in Resource Stockpiling Projects
Disaster Drills
Disaster drills are conducted continuously at 15 national petroleum and
LPG stockpiling bases that JOGMEC has been commissioned to manage.
Based on local residentsʼ understanding of emergency response measures,
JOGMEC is working to improve its disaster prevention technologies byconducting firefighting training and offshore oil-spill response training incooperation with the national government, local governments, local fire
departments, and specialist agencies both at home and abroad. In fiscal
2022, JOGMEC conducted 63 disaster drills at stockpiling bases nationwide.
Comprehensive disaster drill (Discharging of water
into tanks)

Emergency Release Drills
The national stockpiling bases conduct drills to maintain its structure and system with which they can complete the release of
the required quantity quickly and smoothly in the event that the Minister of Economy, Trade and Industry issues a release order.
To prepare for emergencies in the Middle East or other areas, JOGMEC continuously conducts emergency release drills (e.g.,
petroleum and LPG load and release drills conducted by docking tankers and simulations) at national stockpiling bases. In
fiscal 2022, JOGMEC conducted emergency release drills, including actual exercises, simulations and on-the-job training (OJT),at 21 bases in total.

Response to the Spread of COVID-19
Amid the worsening COVID-19 pandemic, we are collaborating with the service companies
at all of the national oil and gas reserves, and implementing various preventive measures
for all personnel involved, including construction workers. Thus we maintain safe and stable
operation at the 15 bases, ensuring a flexible emergency release system.

Te mp e ra t u re t a k in g b e f o referrying to an offshore baseUtilization of New Technologies
JOGMEC has been actively using new technologies. It conducted studies
and testing to apply the phased array ultrasonic testing technology,
which has been used in medical image processing and industrial use nondestructive testing, to tank release examinations. Notifications related tofire prevention ordinances have been announced, and regulatory relaxations
contributing to the rationalization of testing have been achieved.

Phased array ultrasonic flaw experiment46

Mine Pollution Control Projects
Emergency Preparedness
As a part of our wide-ranging assistance in environmental protection and so on for enterprises involved in mining pollution
prevention work, we are continuing to pursue initiatives that will contribute to emergency preparedness.

Large-scale Disaster Management Drills
With Iwate Prefecture outsourcing the operation and management of the new neutralization facility at the abandoned
Matsuo Mine in Hachimantai, JOGMEC has been conducting annual disaster drills to prepare for large-scale disasters suchas major earthquakes and typhoons since fiscal 1998. In the drills, JOGMEC confirms emergency responses in the event of
a disaster and to ensure prompt and smooth communication with related organizations and strives to improve the crisis
management skills and awareness of the staff and other related personnel.
In fiscal 2022 we set up an emergency response headquarters using an online system and implemented a safety drill basedon a scenario in which there was a more or less simultaneous disaster at the site (the Matsuo Mine in Iwate) and the Tokyo
headquarters (and it was difficult for executive staff to come to work).
JOGMEC will continue to encourage improvements in adaptability through the implementation of drills envisaging a rangeof scenarios, and make our preparations for disasters and accidents foolproof. In addition, by supporting the reliable
maintenance and management of this facility, we will contribute to the permanent clarification of the Kitakami River.

On-site response headquarters (new neutralization

Disaster Response HQ (online; Toranomon

facility)

Headquarters)

Mock explanation of damaged places at online

OJT training (installation of temporary piping)meeting
For details on this large-scale disaster drill, open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/news/release/news_10_00075.html

Response to the Spread of COVID-19
In response to the spread of COVID-19, we strengthened our preparedness for operational management risks, such as
formulating a BCP that assumes that staff and other related parties have become infected.

47

Our Approach to SDGs

Cooperation with Local Communities

Resource Stockpiling
Promotion of Regional Understanding
The national stockpiling bases can only function with the understanding of local communities, and so we work tostrengthen our cooperation with local governments and other related organizations in the region.

Exhibition Facilities
At each stockpiling base, we conduct tours as needed to convey the importance of resource stockpiling in simple terms.
We also continue to provide information on the necessity and safety of resource stockpiling at exhibition facilities adjacentto the stockpiling bases as a place to engage with local residents.

Kuji Underground Aquarium Science Museum, Moguranpia (Mugio, Samuraihama, Kuji, Iwate)
Reopened in April 2016. A work tunnel at the underground petroleum reserve wasrepurposed as an aquarium science museum and an exhibition facility related to oilstockpiling.
For details, open the URL below or scan the QR Code on the left.

https://www.moguranpia.com/

Shirashima Exhibition Hall
(Hibikimachi, Wakamatsu-ku, Kitakyushu, Fukuoka)
A showroom that introduces the facilities and functions of the petroleum stockpiling base.
For details, open the URL below or scan the QR Code on the left.

https://museum.shirashima.jp/

Energy Discovery Hall Kappy Plaza(Shinkamigoto, Minamimatsuura, Nagasaki)
A showroom that introduces the facilities and functions of the petroleum stockpilingbase. An exhibition facility related to energy other than petroleum, and the history,
culture, and traditions of Kamigoto.
For details, open the URL below or scan the QR Code on the left.

https://www.kamigoto.co.jp/kappi/

Chikabi Exhibition Hall (Ichikikushikino, Kagoshima)
An exhibition hall created by utilizing the entrance of the work tunnel used when
excavating the bedrock tank.
For details, open the URL below or scan the QR Code on the left.

https://www.kagoshima-kankou.com/guide/10888/

48

Geothermal Resource Development
Promotion of Regional Understanding
With regard to the use of geothermal resources that are a clean and renewable energy emitting hardly any CO2 during power generation,in order to deepen the understanding of local residents we are providing assistance to local governments through the hosting geothermal
symposiums, local municipality geothermal study groups, and setting up the Geothermal Resource Development Advisory Committee.

Geothermal Symposium in Tokyo
On October 7, 2022, we held the Geothermal Symposium in Tokyo in a hybrid format of in-person and online. The total number of inperson participants and online viewers was 2,468 people, and the symposium drew a wide range of people across Japan.
The mountaineer Ken Noguchi and actress Kou Shibasaki, who are interested in geothermal, were appointed as new Geothermal
Ambassadors and were requested to help transmit information related to geothermal issues.
At the symposium, in addition to two keynote addresses we welcomed guests who sense the attractions and future of geothermal
power, and held three talk sessions on different themes.
Adjacent to the symposium venue we staged booth exhibitions for 12 companies and geothermal model districts involved ingeothermal power generation and related matters. In addition, concurrently with the symposium we held an event in the Yaesu
concourse of Tokyo Station called “Kidsʼ Geothermal College,” which enabled mainly children to come into contact with geothermal
and was participated in by 659 people,

For event details, open the URL below or scan the QR
Code on the right.
Geothermal Symposium in Tokyo

Geothermal Power Day poster

https://www.jogmec.go.jp/content/300380290.pdf

Geothermal Model District Project
Based on the policies in the Strategic Energy Plan, JOGMEC has recruited local governments that makeeffective use of geothermal resources and actively promote industries such as agriculture, forestry,
fisheries, and tourism as model districts.
From among the applications, we recognized three municipalities as “geothermal model districts”:
Mori-machi in Hokkaido, Hachimantai in Iwate, and Yuzawa in Akita. We are supporting the nationwide
progress of “sustainable development of geothermal resources in harmony with local communities”
through the launch of a website presenting topics related to the geothermal model districts, thereby
disseminating the exemplary efforts of them throughout the county.
From September 27 to 29, 2022, the Local Government Geothermal Study Group was held in Morimachi in Hokkaido, and participated in by 27 municipal governments from around Japan. Members fromthe Geothermal Resource Development Advisory Committee mentioned below were invited and group work about problem-solving in
geothermal development was held, in addition to which opportunities were provided for experiencing secondary use etc. in Mori-machi.
We also held an inspection visit to the drilling site and contributed to the horizontal expansion of co-existence with the community.

Geothermal Resource Development Advisory Committee
In order to support the municipal governments whose role as the coordinator of appropriate geothermal resources management
is growing, the Geothermal Resource Development Advisory Committee was established and came into operation in 2016. The
Committee is composed of 22 members who are experts in the varied fields of geology, geochemistry, geophysical surveying,simulations, drilling, balneological science, the environment, regional symbiosis, regional economics, hydrology and EGS.
In fiscal 2022 the Committee continued with its hitherto initiatives of responding to requests for advice from Yuzawa City in
Akita Prefecture, and on July 26 and August 1 explained to 44 local governments involved in geothermal the importance of local
government-led community councils. On October 18, at the request of Hachimantai City in Iwate Prefecture committee members weredispatched to the Audi Sustainable Future Tour, and the Committee was operated in a flexible manner.
Contact for inquiries: geothermal_advisory@jogmec.go.jp

49

Our Approach to SDGs

Responses to Climate Change

Toward achieving a carbon-neutral society

Amid a situation in which international movements regarding climate change issues and decarbonization are accelerating,
the Japanese government has raised the twin targets of carbon neutrality in 2050 and ambitious reductions in greenhousegas emissions in 2030. Towards the realization of these targets JOGMEC is contributing to the realization of a carbon-neutral
society through projects in line with the Sixth Strategic Energy Plan and other Japanese government policies.
In fiscal 2022, following the amendments to the JOGMEC Act (seep P.18), we started financial assistance projects regarding
decarbonized fuels such as hydrogen and ammonia, and renewable energy projects such as seabed geological surveys foroffshore wind power, and are accelerating our initiatives towards carbon neutrality at an even greater pace.
In addition, in May 2023 we announced our support for the Task Force on Climate-related Financial Disclosures (TCFD).
Based on the four TCFD Recommendations of governance, strategy, risk management, and metrics and targets, which it
recommends as a framework for information disclosure, JOGMEC will examine the appropriate disclosure of information andpursue responses to climate change.

GovernanceIn order that JOGMEC as an organization fully promote climates change responses it has established the Carbon Neutral
Promotion Headquarters under the direct control of our Executive Managing Director. The Headquarters will prepare asystem to conduct the planning, implementation and improvement of the carbon neutrality-related projects undertaken by
JOGMECʼs various units. Furthermore, as an incorporated administrative agency, business management will be implemented
according to the processes stated in the Act on General Rules for Incorporated Administrative Agencies (instructions
on medium-term objectives by the competent minister, formulation of plans and self-evaluation, and evaluations by thecompetent minister).

Guidelines for evaluation, etc.

Minister of Economy, Trade and Industry
Medium-term
objectives

Ministry of Internal Aﬀairs
and Communications

Evaluations
Opinions

Instruction on medium-term objectives
Authorization of medium-term objectives
Implementation of business evaluations

Submission/
announcement

Consultation and reportingon objective proposals

Committee on the System of Evaluating
Incorporated Administrative Agencies

Chairman & CEO

Medium-term
objectives

Self-evaluation

JOGMEC

President(Director of Carbon Neutral Promotion Headquarters)
establishment of six teams to collaborate with each unit

Risk Management
As part of the internal control system including the Managing Director and junior members the Risk Management Committee
has been established, and it is pursuing risk management initiatives. In response to changes in the internal and external
environment such as the addition of carbon neutral-related business, etc. due to the revisions to the JOGMEC Act, we will
aim to maintain appropriate risk management at all times.

50

Strategy
We have formulated and published the JOGMEC Carbon Neutral Initiative in order to gain an awareness of the impact ofclimate change on our organization and business, and promote carbon neutral-related business on an organizational-widebasis. This initiative stipulates the basic policy for initiatives aimed at achieving carbon neutrality, and concrete action plans.
Through the provision of financial assistance to the projects of Japanese companies contributing to carbon neutrality anddiverse initiatives such as technological problem solving and the development of systems, JOGMEC is steadily promoting
both the stable supply of resources an energy to Japan and decarbonization.

JOGMECʼs initiatives aiming for a carbon-neutral society

All the initiatives canbe found here

Li
Ni
Decarbonization of fossil
fuels development

green

H
H

Geothermal resource
development

Offshore wind power

Metal and mineral resources essential
for storage batteries and renewableenergy generation facilities

Creation of a decarbonizedfuel supply chain

Systematic developments including
carbon pricing and CO2 volume
reduction evaluations

H

N

H
H
blue

Decarbonized fuels such ashydrogen and ammonia

CCS

Metrics and Objectives
Medium-term objectives aimed to be achieved through the period fiscal 2023 to 2027＊
green

Involvement in projects
H for anwithH
the potential
aggregate one million
H
N of hydrogen
tons per year
(equivalent
to sixH millionHtons blueof ammonia)

Support for the mining
and development of
1.06 million kW ofgeothermal resources

Li

Support to secure rights
for an annual 107,000
tons of lithium, nickel
and rare earths

Ni

In line with Japanese government policies, and in order to contribute to the realization of a carbon-neutral society throughthe assistance in the stable supply of resources and energy, JOGMEC aims to achieve the above objectives. With regard to
the results of initiatives towards the attainment of targets, these are published in our self-evaluation report. Furthermore,
JOGMEC is designated as a specified business operator under the Act on Rationalizing Energy Use and Shifting to Non-fossil
Energy, and pursuant to the Act calculates and publishes its CO2 emissions. For more details of the various figures based on
the Energy Conservation Act please refer to p.42-43.
*Details on how to consider target level
JOGMEC Fifth Mid-Term Targets

51About Us

Highlight of Financial Statements
For financial information,
open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/disclosure/regulation_report_001.html(1) Balance Sheet
AssetsCurrent assets(Million yen)AmountLiabilities

1,060,611

Current liabilities

Amount673,408

Cash on hand and in banks

288,158

Loans payable for funding privatesector stockpiling activities

449,198

Loans receivable for funding
private sector stockpiling activities

449,198

Other

224,210Other323,255

Fixed assets

1,346,886

Tangible fixed assets

79,142Rare metals

56,942Other

22,200Intangible fixed assets

135

Investments and other assets

1,267,609

Investments in subsidiaries
and affiliates

1,148,226

Other

119,383

Long-term liabilities
Long-term guarantee deposits

129,400

Other

56,941

Total liabilities

2,407,497

859,750

Net assets
CapitalNational government investments
Capital surplus
Accumulated deficits

1,300,534
1,300,534
11,973−422,015

Accumulated reserve carriedover from the previous mid-termtarget period

5,527

Undisposed accumulated deficits

3,801

Valuation/translation difference, etc.

−431,342

Total net assets

Total assets

186,341

657,255

Total liabilities and net assets

1,547,748

Total liabilities and net assets

2,407,497(Assets)
Total assets as of the end of fiscal 2022 were 2,407,497 million yen, a year-on-year increase of 317,746 million yen (+15.2%).
This was mainly attributable to an increase of 130,503 million yen (+40.9%) in loans receivable for funding private sector
stockpiling activities.

(Liabilities)
Total liabilities as of the end of fiscal 2022 were 859,750 million yen, a year-on-year increase of 253,921 million yen (+41.9%).
This was mainly attributable to an increase of 130,503 million yen (+40.9%) in loans payable for funding private-sector
stockpiling activities.

(Capital)
In fiscal 2022, national government investment eventually increased by 178,500 million yen (+15.9%) following the additionof 178,500 million yen as funding for financial assistance operations in oil and other natural resources.

52

(2) Administrative Cost Statement(Million yen)AmountⅠ Expenses on the income statement
Ⅱ Other administrative costs
Ⅲ Administrative costs

282,164
3,302
285,466(Administrative Cost Statement)
Administrative costs are related to the provision of services of the Independent Administrative Agency, the delivery or
production of goods, or other operations of the Agency, resulting in a decrease in assets or an increase in liabilities. This
excludes transactions that reduce the financial basis of accounting caused by returns to a contributor of the Agency.
In fiscal 2022, of the expenses on the Statement of Operations, operating expenses increased by 106,223 million yen(+143.5%) and commissioned expenses increased by 24,887 million yen (+33.2%). Consequently, expenses on theStatement of Operations increased by 130,235 million yen (+85.7%) from the previous fiscal year.

53About Us(3) Statement of Operations(Million yen)AmountOrdinary expenses (A)282,071

Operating expenses

180,255

Operating expenses

27,745

Operating and administrative
expenses

6,818
103,660

Other

42,032

General and administrative expenses

1,618
17

Other

247
152,174

Revenue from grants foradministrative services

28,377

Operating revenues

7,960

Revenues from other grants received

13,541

Revenues from entrusted activities

99,702

Other

2,595

Extraordinary income (loss) (C)Net profit (loss) for the year
(B − A + C)

54

99,935

Finance costs

Ordinary revenues (B)Ordinary expenses for fiscal 2022 were 282,071 million
yen, a year-on-year increase of 130,266 million yen(+85.8%). This was mainly attributable to an increase of
24,886 million yen in the expenses for entrusted activities
due to carryover of business and an increase of 61,820
million yen in the loss on write-offs of investments in
subsidiaries and affiliates associated with development
and liquefaction investment projects.

(Ordinary revenues)

Loss on write-offs of investments
in subsidiaries

Expenses for entrusted activities(Ordinary expenses)

80−129,817

Ordinary revenues for fiscal 2022 were 152,174 million
yen, a year-on-year increase of 12,234 million (+8.7%). Thiswas mainly attributable to an increase in revenues from
entrusted activities of 26,953 million yen due to carry-overof business.

(Net profit (total loss) for the year)
In addition to the above ordinary revenues and expenses,
an extraordinary loss of 92 million yen in the loss onretirement of fixed assets and an extraordinary income of
173 million yen including the reversal of assets funded byoperational grans-per contra were recorded. As a result,a net loss of 129,817 million yen was recorded for fiscal
2022.
The net loss for the fiscal year was attributable to the factthat loss on write-offs of investments in subsidiaries andaffiliates to the sum of 103,660 million yen were recorded,
which exceeded self-generated income including liability
guarantee fee income (4,037 million yen) and dividend
income (3,787 million yen).

(4) Statement of Changes in Net Assets
Capital(Million yen)

Capital surplus

Retainedearnings

Valuation andtranslation
adjustments

Total net assets

Balance at beginning ofcurrent period (A)1,122,034

15,275−292,197

638,811

1,483,922

Changes of items during
period (B)178,500−3,302−129,817

18,44563,825

Other administrative
costs

0

−3,30200−3,302Current gross income

00−129,8170−129,817

178,5000018,445

196,945

1,300,534

11,973−422,015

657,255

1,547,748

Other
Balance at end ofcurrent period (A+B)(5) Statement of Cash Flows(Million yen)AmountⅠ Cash flows from operating activities (A)Payroll expenses
Loans receivable made−85,799−5,520−449,974

Revenues received from entrusted
activities

92,294

Collection of loans receivable322,370

Other income/expenses−44,969

Ⅱ Cash flows from investing activities (B)33,247

Ⅲ Cash flows from financing activities (C)276,209

Ⅳ Effect of exchange rate changes oncash and cash equivalents (D)Ⅴ Net increase/decrease in cash andcash equivalents(E = A + B + C + D)

Ⅵ Cash and cash equivalents at
beginning of year (F)Ⅶ Cash and cash equivalents at
end of year (G = F + E)

−27
223,62954,805
278,434(Cash flows from operating activities)
Cash flows from operating activities in fiscal 2022
amounted to an outflow of 85,799 million yen, a yearon-year decrease of 220,434 million yen. This was mainly
due to an increase of 129,589 million yen (+40.4%) in
loans receivable made, an increase of 48,568 million yen(+117.1%) in investments in oil and other natural resource
exploration projects, and a decrease of 35,464 million yen
in the sale of shares in related companies.

(Cash flows from investing activities)
Cash flows from investing activities in fiscal 2022
amounted to an inflow of 33,247 million yen, a year-onyear increase of 101,544 million yen. This was mainly due
to an increase of 70,828 million yen (+15.2%) in proceedsfrom securities upon maturity, and a year-on-year decreaseof 34,489 million yen (-6.4%) in the payment for theacquisition of securities.

(Cash flows from financing activities)
Cash flows from financing activities in fiscal 2022
amounted to an inflow of 276,209 million yen, a year-onyear increase of 366,641 million yen. This was mainly due
to an increase of 130,503 million yen (+40.9%) in proceedsfrom loans payable for the funding of private-sector
stockpiling activities and an increase of 103,000 million
yen (+136.4%) in proceeds from the receipt of national
government investments.

55

About Us

Overview of JOGMEC▲

Overview

Official name：Japan Organization for Metals and Energy Security
Date of establishment：February 29, 2004
Purposes：The purposes of JOGMEC are to supply the necessary funds for exploring for petroleum, combustible natural gas
and coal, hydrogen production, geothermal energy as well as metallic minerals or others and to conduct windcondition surveys requisite for the use of wind power, other operations necessary for promoting the developmentof petroleum, combustible natural gas resources, coal resources, hydrogen resources, geothermal resources, wind
power and metallic mineral resources as well as operations necessary for stockpiling petroleum and metallic
mineral products, thereby contributing to a stable and low-price supply of petroleum, etc., coal, geothermalenergy and metallic mineral products, as well as to loan the necessary funds for controlling mine damages causedby metal mining, etc. and other operations, thereby contributing to the protection of the nationʼs health, thepreservation of the living environment and the sound development of metal mining, etc.
Competent minister：Minister of Economy, Trade and Industry
No. of employees：665 people (as of June 1, 2023)
Capital：1,348.4 billion yen (as of May 15, 2023)
Annual budget：1,696 billion yen (fiscal 2022)
Officers：Chairman & CEO：TAKAHARA Ichiro

President：

WAKUDA Hajime

Executive Vice Presidents：NISHIKAWA Nobuyasu, SHIMOTORI Hiroshi, ISHIDA Shuichi, IGARASHI Yoshiaki,
TAKAHASHI Kenichi
Auditors：

MOCHIZUKI Takahiro and KOSHIKAWA Shiho▲

Headquarters

Address： Toranomon-twin-buildings, 2-10-1 Toranomon, Minato-ku,
Tokyo 105-0001, JapanE

L： 03-6758-8000

F A

X：03-6758-8008

T▲

Technology & Research Center

Address：1-2-2 Hamada, Mihama-ku, Chiba-shi,
Chiba 261-0025 JapanE

L： 043-276-9212

F A

X：043-276-4061

T

56

Officers

Chairman & CEO

President●

Director-General, Kanto Bureau of Economy Trade and Industry, METI
Commissioner, Small and Medium Enterprise Agency● Commissioner, Agency for Natural Resources and Energy● Managing Executive Officer, Member of the Board, Marubeni
Corporation● Senior Executive Vice President, Marubeni Corporation● Vice Chairman, Member of the Board, Marubeni Corporation● Vice Chairman, Marubeni Corporation

●

●

●

TAKAHARA Ichiro

Executive Vice President(Internal Audit Office, General Coordination, Human Resources,
Financial Management & Accounting and Evaluation Departments)

WAKUDA Hajime
Information Technology (IT) Office, Cabinet Secretariat
Deputy Executive Director, JETRO Brussels Center● Director for Defense Industry, Aerospace and Defense Industry Division,
Manufacturing Industries Bureau, METI
● Director General, Business Strategy Department, JOGMEC● Director, Policy Planning Division, Natural Resources and Fuel
Department, Agency for Natural Resources and Energy

Executive Vice President(Energy Business Unit)NISHIKAWA Nobuyasu

ASAWA Satoshi●

Deputy Director General, Metals Finance Department
Deputy Director General, General Coordination Department andDirector, Public Relations Division, General Coordination Department● Director General, Geothermal Department● Managing Director, Geothermal Unit

●

●

●

Executive Vice President

Executive Vice President(Metals Strategy & Exploration Unit)(Stockpile Unit)

SHIMOTORI Hiroshi

ISHIDA Shuichi

Director, Exploration Division 2, Metals Exploration Department
Director, Planning Division, Metals Exploration Department● Deputy Director General, Metals Finance Department● Director General, Metals Finance Department●

Executive Vice President

Executive Vice President(Metals Environment, Seafloor Mineral Resources & Coal Unit)(Renewable Energy Business Unit)

IGARASHI Yoshiaki

TAKAHASHI Kenichi●

Director, International Affairs Division, Metals Strategy Department
Director, Seafloor Mineral Resources Research & Development Division,
Metals Mining Technology Department● Director General, Metals Mining Technology Department● Director, Seafloor Mineral Resources Department

●

●

●

●
●

Auditor

General Manager, Middle East Office (U.A.E.)
Deputy Director General, Project Department● Director General, Project Department● Director General, Exploration Department

Director, LPG Site Operation Division, LPG Stockpile Management
Department● General Manager, Kurashiki Project Management Office● Director General, Safety, Environment & Engineering Department● Director, Petroleum & LPG Stockpile Management Department

Deputy General Manager, Jakarta OfficeDirector, Human Resources Division, General Coordination Department● Director, Human Resources Department● Managing Director, Geothermal Unit

Auditor

MOCHIZUKI Takahiro

KOSHIKAWA Shiho

Director of Corporate Assessment Division, Evaluation Department andDirector of Internal Audit Office● Director, Coal Development Division, Coal Development Department● General Manager, London Office● Director General of Coal Development Department and Team Leaderof Carbon Neutral Promotion Group●●

General Manager, Reinsurance Department, Sompo Japan Insurance Inc.
General Manager, Europe & South America Department, Sompo Japan
Nipponkoa Insurance Inc. (Deputy CEO, Sompo Japan Nipponkoa
Insurance Company of Europe (London))● General Manager, CSR Department, Sompo Japan Nipponkoa Insurance
and Sompo Holdings● General Manager, Research Department, Sompo Japan Insurance●57About Us

Overseas Network▲

Overseas Offices (As of April 1, 2023)

Moscow OfficeLondon Office

Vancouver Office
Washington Office

Beijing Office

Houston Office
Middle East
OfficeJakarta Office

Lima Office /Oficina en Lima
Santiago Office/Oficina en Santiago

Sydney OfficeJohannesburg Office
Botswana Geologic Remote
Sensing Centre

OfficeTEL

FAX

Beijing Office3001 Chang Fu Gong Office Building, Jia-26, Jian Guo Men Wai
Street, Beijing CHINA 100022+86-10-6590-9520+86-10-6590-8366

Jakarta Office

5th Floor, SUMMITMAS II, Jl.Jend.Sudirman Kav.61-62,
Jakarta, 12190, INDONESIA+62-21-522-6640+62-21-522-6650

Sydney Office

Level 23, BT Tower, 1 Market Street,
Sydney, NSW 2000, AUSTRALIA+61-2-9264-2493+61-2-9264-4914

Washington Office1233 20th Street, N.W. Suite 206 Washington, D.C. 20036, U.S.A.

+1-202-775-0602+1-202-775-0605

One Riverway, Suite 450, Houston, Texas 77056, U.S.A.

+1-713-622-0204+1-713-622-1330(North, Central America and Caribbean
Regional Headquarters (Metals))

1710-400 Burrard Street, Vancouver, B.C. V6C 3A6, CANADA+1-604-685-1282+1-604-685-4123

Lima Office /Oficina en Lima

Av. Camino Real 348, Torre El Pilar, Piso 7, Offcina 704,
San Isidro Lima-27, PERU

+51-1-221-5088

ーSantiago Office/Oficina en Santiago

World Trade Center, Torre Norte 1005, Av. Nueva Tajamar 481,
Las Condes, Santiago, CHILE+56-2-2203-6130+56-2-2203-6121

Moscow Office

Office 748, Hotel Mezhdunarodnaya Krasnopresnenskaya Nab.12
Moscow 123610, RUSSIAN FEDERATION+7-495-967-0405+7-495-967-0407

London Office

Carrington House, 126-130 Regent Street, London W1B 5SE, U.K.

Oil & Gas : +44-20-7287-7915
Metals : +44-20-7287-7916+44-20-7287-7917

Middle East Office

P.O. BOX 6270 Al-Masaood Tower #904, Sheikh Hamdan Street,
Abu Dhabi, U.A.E.

+971-2-6330366 ／+971-2-6217704+971-2-6330280

Johannesburg Office

3rd Floor West Tower of Nelson Mandela Square, Sandton City,
Johannesburg, 2146, SOUTH AFRICA+27-10-226-9555

ー

Botswana Geologic
Remote Sensing Centre

Plot 54353, 5th Floor Office B, Masa Centre, P.O.Box 773 AAH,
Gaborone, BOTSWANA+267-390-2878

Huston Office(Americas Regional Headquarters(Oil and Gas))

Vancouver Office

58

Location+267-390-2879

▲Domestic Offices (As of April 1, 2023)

Tomakomai Site Management Office
Hokkaido Metals Environment Support OfficeMutsu-Ogawara Site Management Office

Kashiwazaki Test Field Office
Nanao Site Management Office

Metals Technology Center

Fukui Site Management OfficeKuji Site Management Office
Matsuo Mine Pollution Control Project
Support Office
Akita Site Management Office
Tohoku Metals Environment Support Office

Shirashima Site Management Office
Kyushu Branch Office
Fukushima Site Management Office
Kamigotou Site Management Office

Kamisu Site Management Office
Technology & Research Center
Head Office

Kurashiki Site Management Office
Kushikino Site Management Office

Namikata Site Management Office

Shibushi Site Management Office

Kikuma Site Management Office

Head Office

Technology & Research Center

Petroleum Stockpile Site Management Office

LPG Stockpile Site Management Office

Metals Environment & Geothermal Resource Support Office, Kyushu Branch Office

OfficeKashiwazaki Test Field Office

Metals Technology Center

Location

TEL

FAX

Technology & Research Center

1-2-2 Hamada, Mihama-ku, Chiba-shi, Chiba 261-0025 Japan043-276-9212

043-276-4061

Mutsu-Ogawara Site Management Office525-2 Aza-Futamata, Oaza-Obuchi, Rokkasho-mura Kamikita-gun, Aomori 039-3212 Japan

0175-73-3611

0175-73-3612

Tomakomai Site Management Office

308 Aza-Shizukawa, Tomakomai-shi, Hokkaido 059-1363 Japan

0144-56-2466

0144-56-1513

Akita Site Management Office

219 Aza-Ashizawa, Funakawa, Funakawa Minato, Oga-shi, Akita 010-0511 Japan

0185-24-6121

0185-24-4555

Kuji Site Management Office8-105-2 Heinokuchi, Natsui-cho, Kuji-shi, Iwate 028-0001 Japan

0194-52-2215

0194-52-2216

Fukui Site Management Office

1 Aza-Rinkai, 38 Ishishinbo-cho, Fukui-shi, Fukui 910-3133 Japan

0776-85-1229

0776-85-1220

Kikuma Site Management Office4642-1 Tane, Kikuma-cho, Imabari-shi, Ehime 799-2302 Japan

0898-54-2929

0898-54-2928

Shirashima Site Management Office

1-108 Hibiki-machi, Wakamatsu-ku, Kitakyushu-shi, Fukuoka 808-0021 Japan093-761-1411

093-761-1454

Kamigotou Site Management Office818-411 Aza-Orishima, Tsuzukihamanouragou, Shinkamigoto-cho, Minamimatsuura-gun,Nagasaki 857-4415 Japan

0959-52-4610

0959-52-4617

Kushikino Site Management Office

1 Seisatsu-cho, Ichikikushikino-shi, Kagoshima 896-0046 Japan

0996-33-1182

0996-33-1189

Shibushi Site Management Office5024-1 Aza-Shinsuzaki, Kawahigashi, Higashi-Kushira-cho, Kimotsuki-gun, Kagoshima893-1615 Japan

0994-63-6993

0994-63-6905

Kamisu Site Management Office6225-40 Okunoya, Kamisu-shi, Ibaraki 314-0116 Japan

0299-97-3020

0299-97-3021

Nanao Site Management Office165-1 Mimuro-machi, Nanao-shi, Ishikawa 926-0007 Japan

0767-58-8787

0767-58-8789

Kurashiki Site Management Office2-1-2 Shio-dori, Kurashiki-shi, Okayama 712-8054 Japan086-455-6111

086-455-6110

Namikata Site Management Office

600 Ko, Miyazaki, Namikata-cho, Imabari-shi, Ehime 799-2104 Japan

0898-36-4051

0898-36-4061

Fukushima Site Management Office58-2 Shiohamamen, Fukushima-cho, Matsuura-shi, Nagasaki 848-0403 Japan

0955-41-3030

0955-41-3033

Hokkaido Metals Environment Support Office30-7 Moto-machi, Date-shi, Hokkaido 052-0022 Japan

0142-25-1113

0142-23-1259

Tohoku Metals Environment Support Office2-5-17 Matsunami, Yamagata-shi, Yamagata 990-0023 Japan023-626-4631

023-626-4632

Kashiwazaki Test Field Office

690 Oaza-Hirai, Kashiwazaki-shi, Niigata 945-1353 Japan

0257-21-5420

0257-21-5443

Matsuo Mine Pollution Control Project
Support Office

1-3-1 Kashiwadai, Hachimantai-shi, Iwate 028-7303 Japan

0195-78-3156

0195-78-3076

Metals Technology Center

9-3 Furudate, Kosakakozan, Kosaka, Akita 017-0202 Japan

0186-29-3829

0186-29-3849

Kyushu Branch Office

2-19-24 Hakata-ekimae, Hakata-ku, Fukuoka-shi, Fukuoka 812-0011 Japan092-411-7831

092-471-6975

59

Providing Current Resource and Energy Information

JOGMEC uses the website as a vehicle for publishing a wide range of information, from organizational and operational
information to the latest news, as well as content unique to each field. We also hold various events, monthly briefings, andpresentations to report the findings of information analysis and research. We strive to provide a wide range of information
to meet the needs of both the general public and experts.

Publications
JOGMEC produces its Public Relations Magazine JOGMEC NEWS and other regular publications to provide stakeholders
with the latest information about its business, news, and events in relation to resources and energy.
JOGMEC will continue to disseminate information to promote understanding of the stable supply of resources and energy.

▲

飯

エネ

nergy foods

働くJOGMEC職員。
仕事内容はさまざまです。

ルギーをチャージするための大切な時間。
C職員の「エネルギー飯」
を紹介します。

vol.

私が担当している広報誌「JOGMEC NEWS」の制作中は、

くあります。タイトなスケジュールの中でも、移動中にそ楽しみのひとつ。束の間の休息後は、次の行程の段取り

い出すなど、
頭をまた動かし始めます。忙しい出張中で資源之国﹁秋田﹂今 昔 物語

◎特集

“駅弁”

vol.

2022 june

◎特集

69

dango

資源エネルギー業界全体の活性化

JOGMEC NEWS 69

dengaku

tori noshioyakiPublic Relations Magazine “JOGMEC NEWS”

資源之国
﹁秋田﹂
今昔物語

JOGMEC NEWSのAbout Us

Story
Energyin
Akita

エネルギーの源です。

鉱物資源機構）は日本のエネルギー・鉱物資源活の向上に貢献する独立行政法人です。

分野において、
地質構造調査や金融支援、技術います。近年は、
カーボンニュートラル社会の実

回収貯留）の活用促進のための取り組み強化等

一の機関として、これからも日本のエネルギー・

JOGMEC

本誌に関するご質問は、
左記広報課まで

2022 june▲▲

CORPORATE PROFILEJOGMEC Oil &Gas Business Tool List▲▲

What is JOGMEC?

JOGMEC Business Tool List
Metals Related Activities

Various publications are available on JOGMECʼs website.
For details, open the URL below or scan the QR Code on the right.

https://www.jogmec.go.jp/publish/index.html

60

JOGMECʼs MediaJOGMEC also publishes information on YouTube and Twitter. Many videos and interviews about our resource development
projects are posted on YouTube. We use Twitter to provide the latest information on resource development and market reviewson a daily basis.

Websites for Different Resources
We have established specialized sites in the four fields of oil and natural gas, metals, coal, and geothermal energy. Informationcollected by JOGMECʼs Research and Analysis Department and overseas offices, analyzed reports, research reports, and so on
are posted for each field. We also provide information on various seminars, lectures, and presentations.

Geothermal Resources
Information▲

Metal Resources
Information▲

Coal Resources
Information▲▲

Oil and Natural Gas
Resources Information

Postscript
Thank you very much for reading the JOGMEC REPORT through to the end.
Since fiscal 2019 JOGMEC has started to publish this integrated report as an information provision media to replace the Annual
Report and the Environmental Report. In this fifth edition of the report JOGMEC has, with regard to the medium-to-long-termtargets it pursues and the value-creation initiatives implemented for that purpose, taken care to highlight points that make itreadable to a wide range of people and edit it in a readily understood manner.
However, JOGMEC still feels that the report is inadequate in order to obtain an understanding of its highly diverse businesselds and the many initiatives pursued towards the future. The opinions and requests of everybody who has read the report are
key to its evolution, and JOGMEC would very much like to hear its readershipʼs frank and candid opinions. JOGMEC would be
most grateful if, as a result of everybody who kindly supports us sharing their opinions, it becomes possible to create a usefulintegrated report.
JOGMEC REPORT Publication OfficeIncorporated Administrative Agencies
Incorporated administrative agencies are establishedto handle certain tasks and activities involving theimplementation of administrative activities andpolicies on behalf of government-based ministries
and agencies. This transfer of roles to autonomous
agencies is expected to reinvigorate and streamline
activities while also enhancing their quality andtransparency. Whenever an agencyʼs mid-term targets
are due for completion, the competent ministermust take requisite measures based on their overall
assessment of the agency and the work that it carriesout, taking into consideration matters such as theneed for the agency to continue its operations androles that it may be required to play in the future.

Japan Organization for Metals and Energy Security
Toranomon-twin-buildings, 2-10-1 Toranomon,
Minato-ku, Tokyo 105-0001, Japan
TEL: 03-6758-8000 FAX: 03-6758-8008

Certification obtained by Headquarters
and the Technology & Research Center

Certification obtained by Headquarters
and the Technology & Research Center