Appendix

Toward a Carbon-Neutral Society

May 13, 2021
Japan Petroleum Exploration Co., Ltd.
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

Background of “JAPEX 2050” Formulation～Reorganized our responsibility and role for the Carbon-Neutral Society
JAPEX’s efforts under the mission of “stable energy supply”
Oil and gas E&P*, and natural gas supply as lower environmental impact fuel for many years

Foundedin 1955

* Exploration and Production

Exploration and production in domestic oil & gas fields/Participation in overseas E&P projects
Construction and operation of domestic natural gas supply network

Long-term visionin May 2018

Commenced a natural gas power plant/
Established organization for renewable energy,
New Business, and Environmental Business

October 2020

Target Settingby theGovernment

Growth as a “Comprehensive Energy Company”
by electricity and business with lower environmental impact

Aims to achieve net-zero GHG emission by 2050

“JAPEX2050 ~ for the Realization of a Carbon-Neutral Society ~”formulated in May 2021



Reorganized efforts to date, clarified our responsibility and focus area toward the carbon-neutral society
Pursue new possibilities as a “Comprehensive Energy Company” that contributes to realize net-zero in 2050

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1Outline of “JAPEX 2050”
Specified JAPEX’s target and focused contribution areas toward 2050



GHG Emission Reduction Target

Contribution Areas for Net-zero

Scope1+2

CCS/CCUS

Reduce by 40% in FY2030 compared to FY2019 ofCO2 emission intensity of the JAPEX group’s operations
Achieve the net-zero CO2 emission of our group’s
operation in 2050

Realize and commercialize CCS/CCUS technologies
Enter the business areas related to CCS/CCUS, such asblue hydrogen, methanation, and natural gas-fired
power plants with CCS

Renewable Energy

Scope3

 Contribute to establish new technologies andenergy supply with low environmental impact, forachieving the net-zero CO2 emission in our supply chain



BECCS (Biomass power generation with CCS/CCUS
that enables negative emissions)
Offshore wind power generation to leverage our E&P
experience and expertise

Stable Supply of Oil and Natural Gas
Natural Gas Use PromotionInterest Acquisition and Development

Respond to the demand for fuel switching from otherfossil fuel such as coal and heavy oilStrengthen our responses for meeting various future
demands to LNG

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2Recognize that oil and natural gas will remain as one of
the major energy sources
Focus on the acquisition of oil and gas interests, as wellas its development and production continuouslyAbout CCS/CCUS
Reducing CO2 emission by capture, injection, and storage underground
CCS: Carbon dioxide Capture and Storage
CCUS: Carbon dioxide apture, Utilization, and Storage
Proceeding examination and verification for implementation worldwide to achieve “net-zero” by 2050

In Japan, undertaking verifications including a large-scale governmental one at Tomakomai, Hokkaido
JAPEX has been participating in the Tomakomai CCS verification test as the top shareholder of Japan CCS Ltd.

Flowof CCS

Elements

Capture CO2
beforeemission
to the air

Transport CO2 to storage locations by pipelines and other methods

Inject CO2 from welland store it
underground

Capture CO2

Transport CO2

Inject and Store CO2

Building CO2 separation plant

Constructing
CO2 transportation pipelines

Selecting locations for CO2 storage
Drilling injection wells
Monitoring status of injection/storageCCS/CCUS has high affinities with E&P which are JAPEX’s significant strengths
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

3

Our Capabilities and Possibilities in CCS/CCUS
Aiming the early realization of CCS/CCUS as a pioneer in Japan
Subsurface investigation (Geophysical Exploration)

Well drilling from land to subseafloor

Well management/monitoring

Select candidate locations for CCS/CCUS, and execute CO2 injection, storage, and monitoring Technical capabilities to complete all elements in the JAPEX group for realization including exploration, drilling, and monitoring Utilize the data concerning deep saline aquifers*, acquired by our investigations and explorations in Japan

Capture CO2

Utilize CO2

Transport CO2

Transport separated and captured CO2

Inject and Store CO2

Collaborate and Enter Carbon-Neutral Business Apply CCS/CCUS to power generation by gas and biomass
 Consider to enter blue hydrogen and methanation business Establish CO2 transportation infrastructures leveraging
our expertize in natural gas and LNG supply

Focus on gasfired and biomass
plant, including
facility owned byother companies

Such ashigh-pressure gas pipelineand coastal vessels[Blue Hydrogen]
Discompose
natural gas,and capture CO2
after production

H2[Methanation] Produce
Methane (CH4)from H2and CO2

CH4Note) * Sandstone layer in deep underground that includes ancient sea water (salt water) which are not suitable for drinking. Its geographical distributions are broader compared to oil and natural gas reservoirs, and CO2 storage capacity is anticipated.

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4

Lower Environmental Impact Energies
Strengthen our response to increasing demands for specific energiesParticipation in Renewable Energy Projects
Increase and examine candidates mainly biomass and offshore wind power while utilizing our conventional capabilities

Biomass Power GenerationOffshore Wind Power Utilize expertise in natural gas power project• Process management of plant construction• Procurement of fuel LNG, and others＋CCUS/CCS
Collaboration

 Utilize expertise in oil and natural gas E&P• Offshore platform operation and management• Subsurface examination of installation location

 Consider to apply BECCS* in biomass power generation plants* Bioenergy with Carbon Capture and StorageRespond to Demands for Natural Gas with Lower Environmental Impact
Expand gas utilization as well as conduct natural gas E&P and LNG procurement, with assumption of its long-term gas demands

Stable Natural Gas Production and Supply

Respond to Increasing Natural Gas Demand Acquire new overseas interests/
new and additional development in Japan Flexible and competitive LNG marketing• Consider carbon-free LNG procurement Demand for switching from coal and heavy oil• Such as power plants and large scale facilities• Horizontal expanding various supply methods
including overseas＋CCS/CCUS
Collaboration

 Consider to apply CCS/CCUS to natural gas power plant Challenge to enter blue hydrogen and methanation business areas

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5Business Assumptions toward 2050
CCS/CCUS centered business cycle toward the carbon-neutral society
Clients: Achieve the CO2 Net-zero by various energy utilization and CCS/CCUS
Oil and Natural Gas

Promotefuel shift
to naturalgas

HydrogenChallenge areas
to expand/collaborate/enter

Blue Hydrogen
Production

CO2
Separationand Capture
VenueElectricity

Carbonrecycling
Production
Venue

CO2Transportation

Methanation

Capture before emitted into the airfrom plants and large facilities

Gas PowerGenerationGas Power
Generationwith CCS

CO2Transportation

As a raw materialof the carbon-neutral products

Renewable Energy
BiomassOffshore
Wind Power

BECCS(with CCS)

CO2Injectionand Storage
Venue
CCUS: Improve Oil/Gas Recovery
CCS: Injection and Storage

Oil and Natural Gas Exploration, production, and Supply

JAPEX’s significant strengths
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Including new oil and gas interests acquisitionand efforts to reduce CO2 emission basic unit in our operation

6Roadmap toward 2050
Reduce Scope1+2 emission intensity and implement CCS/CCUS in 2030
GHG Emission
Reduction Target

Reduce Scope1+2 emission intensity by 40%
compared to FY2019

Achieve the net-zero emissions by 2050

Consider to implement CCS/CCUS
at JAPEX’s domestic oil and gas fields

CCS/CCUS

Commercialize CCS/CCUS in Japan
Location surveys and implement examinationof CCS/CCUS in deep saline aquifers* in Japan
Commercialize carbon-recycling businesses

Consider and verify carbon-recycling projects

Other Areasto Contributetoward Net-zero(by own and/or cooperation for supplying raw material)

Increase renewable energy source and supply

Power plants with CCS

Stable electricity supply from the natural gas power plant

Stable Supplyof Oiland Natural Gas(Natural gas-fired and BECCS)

Enhance natural gas and LNG utilization, including carbon-neutral LNG supply
Acquire new overseas interests with focus to natural gas and including CCUS,
Continue development and production aiming the demands

2030

2021

2040

Note) * Sandstone layer in deep underground that includes ancient sea water (salt water) which are not suitable for drinking. Its geographical distributions are broader compared to oil and natural gas reservoirs, and CO2 storage capacity is anticipated.

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