Business Development StrategyTowards a Net Zero Carbon Society by 2050
January 27, 2021

Copyright© 2021 INPEX CORPORATION. All rights reserved.

1

Basic Policy on Management
Towards a Net Zero Carbon Society by 2050

1

INPEX will proactively engage in energy structure reforms towards the realization of a net zerocarbon society by 2050, while responding to the growing energy demands of Japan and the world
and fulfilling its responsibility for the development and stable supply of energy over the long-term.

2The company will set climate change response goals to achieve its own net zero carbon emissions
by 2050, to contribute to the realization of the Paris Agreement objectives in relation to climatechange.

3INPEX will actively promote five business pillars through the following three initiatives, in order tooffer solutions responding to the needs of society in an age of transformation towards a net zerocarbon society.
ReduceCO2 emissions
from upstream
operations(CCUS*)

1. Leverage the company’s strengths (knowledge and experience)
INPEX will make the most of its strengths such as its management,
technical and operational experience gained in Japan and around theworld to select business targets and apply its management resources
including human resources, finances and business knowledge.

2. Strengthen collaboration with industry, academia and government
Responding to changing times requires innovation and the realizationof new business models. INPEX will promote long-term ties andcollaboration with industry, academia and government in a broad
spectrum of business fields.

3. Utilize policy support measures
The company will collaborate on the improvement of policy
frameworks and promote rapid and efficient initiatives making use ofpolicy incentives.
* Carbon dioxide Capture, Utilization and Storage
Copyright© 2021 INPEX CORPORATION. All rights reserved.

Enhance andemphasize
renewableenergyinitiatives

Becominga Pioneer ofEnergy
Transformation

Promotecarbon recycling
and cultivate newbusiness opportunities

Promoteforestconservation

Develop ahydrogenbusiness2

Climate Change Goals
INPEX has set its own goals to contribute to realizing a net zero carbon society as outlined inthe Paris Agreement.*1*1: International treaty with the goal of keeping average global warming to well below 2 degrees Celsius

2050

2030

Scope 3NET ZERO*2

30% OR MORE*3

REDUCTIONin absolute emissions(Scope 1+2)

reduction of net carbon intensity(Scope 1+2)

*2: on INPEX equity share basis*3: in comparison with 2019

work together withall relevant stakeholders toaddress challenges
across the value chains

TO ACHIEVE THESE GOALS INPEX WILL…
Promote CCUS;
Strengthen renewable energy initiatives;
Promote forest conservation for CO2 absorption;
Maintain current low methane emissions intensity of approximately 0.1%*4 (calculated by methaneemissions / natural gas production); andAim to eliminate routine flaring by 2030.*4*4: in INPEX-operated projects

PROMOTE THE ONGOING DISCLOSURE OF CLIMATE-RELATED INFORMATION IN LINE WITH TCFD RECOMMENDATIONS.
Copyright© 2021 INPEX CORPORATION. All rights reserved.

3Upstream CO2 Reduction (Promotion of CCUS) – Cleaner Use of Natural Gas –Taking advantage of its track record and technical expertise in CCUS (Japan’s first CCUS projectcommenced at INPEX’s Kubiki Oil field in Niigata in 1988), INPEX seeks to apply CCUS toachieve safe storage and efficient utilization of CO2 in Japan and overseas including the Ichthys
LNG Project in Australia.

INPEX promotes a shift to natural gas and carbon neutral LNG in conjunction with efficient useof energy and implementation of energy saving measures across its entire business including
exploration, development and production.
CO2 EOR Demonstration Tests in Niigata, Japan• INPEX plans to conduct CCUS (CO2 EOR) demonstration tests at one of its onshore oil fields in Niigata, Japan, applying
EOR recovery improvement technology (CO2 foam technology) being developed by the company.
• The demonstration tests will consist of drilling two new wells in 2022, analyzing reservoir core samples and conducting
CO2 injection tests. The tests are expected to boost the application of CCUS technologies in Japan as well as CO2 EOR
technologies at INPEX’s upstream assets overseas.

Ichthys LNG Project CCS• INPEX is evaluating the feasibility of sequestration of
CO2 captured at the INPEX-operated Ichthys LNG
plant in Darwin, Australia.
• An appropriate injection site is to be selected based on
detailed evaluation.

* Enhanced Oil Recovery. In this document EOR includes Enhanced Gas Recovery.
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4Hydrogen Business (1)Envisioning the advent of a hydrogen era, INPEX aims to expand its energy business to include
the production and supply of hydrogen.
Utilize natural gas from INPEX assets to produce “carbon-free hydrogen” through a natural gas reforming
process and conducting CCUS with the CO2 emitted from this reforming process.
Enhance R&D activities to establish a hydrogen value chain in collaboration with external companies andorganizations.
Aim to create a hydrogen society at an early stage through collaborative cross-sector projects on the social
implementation of hydrogen as a member of the Japan Hydrogen Association.
Concept of Integrated Hydrogen Business Test Project in Kashiwazaki, Niigata, Japan• An integrated “all-in-one” demonstration test is planned in Niigata, Japan, taking advantage of INPEX’s upstream
technologies and domestic natural gas supply infrastructure. INPEX will demonstrate a hydrogen business model
delivering hydrogen produced at INPEX's overseas natural gas assets to Japan.
Production

Pipeline

Production

Generation

H₂GAS
Minami-Nagaoka Gas FieldHEATCO₂GASDAC*EOROILCO₂Sales
CO₂H₂H₂CO₂Market Development
AdvancedTechnologies

CoreAdvancedCopyright© 2021 INPEX CORPORATION. All rights reserved.

INPEX’s Depleting Gas Field* Direct Air Capture

5Hydrogen Business (2)INPEX is evaluating ammonia production and liquified hydrogen business opportunities as ways to transport
and import hydrogen produced at INPEX upstream assets overseas to Japan.
These opportunities are expected to eventually lead to a carbon-free energy business leveraging INPEX’s naturalgas assets outside of Japan.
Clean Ammonia Business in Abu Dhabi• INPEX is evaluating opportunities to produce hydrogen and ammonia from natural gas produced in Abu Dhabi. CO2from the gas reforming process will be utilized in CCUS / EOR at an onshore Abu Dhabi oil field in which INPEX has aparticipating interest, with the objective of realizing clean ammonia.
• The ammonia is to be imported to Japan using marine vessels and supplied to Japanese utilities as clean fuel for power
plants, contributing to the reduction of CO2 emissions.
• A feasibility study is being proposed to ADNOC (UAE) and discussions with ADNOC and domestic partners are ongoing(as of 2021).

Carbon-Free Hydrogen Business outside Japan• INPEX is examining ways to participate in a hydrogen liquefaction and offloading business to develop its own hydrogenbusiness abroad.
• The company is making use of knowledge and experience in natural gas liquefaction (LNG).

Hydrogen Production
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Liquefaction

Marine Transportation

Use

6

Enhance and Emphasize Renewable Energy Initiatives
INPEX will accelerate its initiatives both in Japan and around the world relating to geothermal
power generation applying oil and gas development technologies, as well as offshore windleveraging experience in the construction and operation of offshore floating facilities gained atoperations sites overseas.
Geothermal• High potential in Japan and Indonesia where INPEX has
considerable business experience.
• Applying oil and gas development technologies such as
geological / geophysical surveys and drilling.
• Planning further development of Sarulla in Indonesia,
one of the world’s largest geothermal projects.
• Domestic track record of conducting development
studies, exploratory drilling and flow tests in the Oyasu
area of Akita Prefecture and the Amemasu area in
Hokkaido, Japan.

Sarulla Geothermal Independent Power Producer (IPP) Project
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Offshore Wind
• Plans to realize fixed-bottom wind project offshore
Noshiro, Mitane and Oga in Akita Prefecture, Japan.
• Ability to apply business management experience ofdesigning and operating floating structures for crude oiland gas production at Ichthys and elsewhere.
• Plans to create a floating offshore wind business, which
has advantages for first movers, making particular useof INPEX’s strengths.

Generic image of offshore wind7

Promote Carbon Recycling andCultivate New Business Opportunities

INPEX will promote carbon recycling with the aim of setting up business operations at an early stage,
leveraging synergies with its oil and gas business operations.
Acceleration of Methanation Business

Artificial Photosynthesis(towards the supply of carbon-free methane)•Plans to complete basic technicaldevelopment in 2021, scale up thetest facility in stages while
implementing cost reduction
measures and achievecommercialization beyond 2030.

•Commenced joint studies with theAustralian Federal Institute for
Scientific and Industrial Research(CSIRO) in July 2020 towardspractical application in Australia,
based on the Japan-Australia
Carbon Recycling Cooperation
Memorandum.

Test facility within Koshijihara Plant(a NEDO* project)(towards the supply of hydrogen derived from renewables)•

Participating in the Japan
Technological Research Association of
Artificial Photosynthetic Chemical
Process (ARPChem) and in charge oftechnical development for productionof solar hydrogen through catalyticreaction.

•Steady implementation of R&D withaims to ultimately achieve 10% solar
energy conversion efficiency; plans toevaluate practical application.

•Installation of artificial photosynthesis
panels in Darwin, Australia, thelocation of the Ichthys onshore plant.

Artificial photosynthesis panels
installed in Darwin, Australia

As a member of the “Challenge Net Zero Carbon Innovation” initiative led by the Japan Business Federation (Keidanren), INPEX is implementing the two initiatives listed above.
(INPEX Joins Keidanren's "Challenge Zero" Decarbonization Initiative: https://www.inpex.co.jp/english/csr/topics/20210118.html)

INPEX will swiftly pursue initiatives in new business fields showing signs of growth.

The company will accelerate the startup of businesses in new fields through proactive tie-ups with external R&D venturesand research institutions, etc., in addition to internal ventures leveraging in-house resources to the maximum extent.

Specific business prospects●Improved operational stability and security through pipeline management utilizing drones ●Introduction of DX relating to energy
businesses ●Development of methane direct cracking technologies; development of technologies to directly crack methane intohydrogen and carbon ●Carbon materials business; effective use of carbon extracted from the direct cracking of CO2 ●Development of
CO2 extraction, processing and utilization technologies
Copyright© 2021 INPEX CORPORATION. All rights reserved.

* New Energy and Industrial Technology Development Organization, Japan

8CO2 Absorption through Forest Conservation
INPEX will promote CO2 absorption through forest conservation.

The company will contribute to forest conservation activities in Indonesia and other countries, mainly bysupporting distinguished REDD+* projects, which contribute to climate change response, biodiversity
conservation and improved living standards of the local communities.
Future Projects

Future Projects• Starting in 2021, INPEX will support forest conservation mainly through REDD+.

Current Projects in Australia• CO2 absorption through eucalyptus tree
planting and management and savanna
fire management projects.

Eucalyptus trees grown in plantations
in southwestern Australia

Biodiversity conservation ▶

◀Educational supportfor local communities* Reducing Emissions from Deforestation and forest Degradation – a concept defined in the Cancun Agreements (2010) aiming at reduction of CO 2emissions by controlling deforestation and deterioration through forest management and actively increasing carbon stock through afforestation.
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9Business Milestones2050

Present
Business implementation

GeothermalWind

Reinforcement of earning power
Hydrogen business expansion

Power fromrenewables＋
Hydrogenproduction
utilizing surplus
powerOperations
start-up at
Oyasu, etc.

Additional
development ofSarulla ProjectBusinessexpansionExperiencebuilding in
offshore fixedbottom sector

Entry intooffshore
floating sector

Business
expansion

Reduction of CO2 from INPEX assets

Ichthys
CCUS

Active business expansion

Integrated
demonstration
tests in Japan

Renewable
fields

CCUS andhydrogen
Business establishment

Reinforcement of earning power as core business

Commercialization(Processing CO2 emitted byother companies)

Business expansion
efficiency andlow-cost realization

Commercialization
Hydrogen

Abu Dhabi

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(Developing hydrogenvalue chain)

Upstreamfields10Implementation Structure
Organization
Establishment of Hydrogen & CCUS Development Office

New office set up to promote the clean development and supply of crude oil and natural gas as well as a hydrogenbusiness.

Reorganization as Renewable Energy & New Business Division

Renewable Energy & Power Business Division renamed as Renewable Energy & New Business Division, with theestablishment of New Business Development Unit to promote activities in new areas of business.

Funds

Human Resources

Internal venture funds

In-house recruitment,
multiple roles

Leverage company-wide humanresources through in-house
recruitment and assigning multiple
roles to promote initiatives including
CCUS, hydrogen, renewable energies
and businesses in new fields.

Organization

Green bonds

External HR
Utilize external HR and knowledge
by proactively pursuing collaborative
efforts with R&D ventures andstartups, etc.

Reinforcement ofindustry, academia
and government ties

Promote cross-sector corporate
partnerships and industry, academia
and government joint research.

Establish systems such as
internal venture funds torapidly and flexibly promote
new business activities.

HumanResourcesFunds

Proactively consider theissuance of green bonds topromote initiatives towards
a net zero carbon society.

Government support
Utilize government subsidies
provided by NEDO,JOGMEC* and others.
* Japan Oil, Gas and Metals National Corporation

Copyright© 2021 INPEX CORPORATION. All rights reserved.

11Towards a More Resilient & Cleaner Upstream Business
INPEX continues to position crude oil and natural gas as important sources of energy, for which
demand is expected to remain strong over the medium- to long-term. Meanwhile, it is possiblethat pressure from the net zero carbon movement to curtail this demand may grow.
INPEX will continue to position its upstream business as a core business and will work to fulfill
its two social responsibilities of providing a stable supply of energy and responding to climatechange by strengthening its upstream business and making it cleaner.

Early-stage
development&production

Resistance tolowoil prices

A MoreResilient &Cleaner
UpstreamBusinessGas shiftCopyright© 2021 INPEX CORPORATION. All rights reserved.

Energysaving&efficiency

12Cash Allocation Concept

Average annual scale of investment
over the next five years*Scale of investment based on US$50~60 oil price assumption

Annual investment outlook ofapproximately 20~30 billion yen
in the medium-term
for the five initiatives
Appx. 20~30
billion yen

Appx.

250~300
billion yen

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13

Change of Corporate Name

To implement its business development as a unified group, the company willchange its Japanese name from Kokusai Sekiyu Kaihatsu Teiseki Kabushiki Kaisha toKabushiki Kaisha INPEX, effective April 1, 2021.*
INPEX's English name, INPEX CORPORATION, will remain unchanged.
INPEX will contribute to the SDGs including energy, the environment, economic growthand social development by continuing to supply Japan and countries around the world
over the long-term with diverse energy in a stable and cleaner way.

Copyright© 2021 INPEX CORPORATION. All rights reserved.

* Subject to approval at the 15th Ordinary General Meeting of Shareholders.

Disclaimer and Cautionary Statement
Disclaimer
Information contained in the Business Development Strategy – Towards a Net Zero Carbon Society by
2050 is not an offer or a solicitation of an offer to buy or sell securities. You are requested to makeinvestment decisions using your own judgment. Although the company has made sufficient effort toensure the accuracy of information provided herein, the company assumes no responsibility for any
damages or liabilities including, but not limited to, those due to incorrect information or any otherreason.

Cautionary Statement
The Business Development Strategy – Towards a Net Zero Carbon Society by 2050 includes forwardlooking information that reflects the company’s plans and expectations. Such forward-looking
information is based on the current assumptions and judgments of the company in light of theinformation currently available to it, and involves known and unknown risks, uncertainties and otherfactors. Such risks, uncertainties and other factors may cause the company’s performance,achievements or financial position to be materially different from any future results, performance,achievements or financial position expressed or implied by such forward-looking information.
The company undertakes no obligation to publicly update or revise the disclosure of information in
the Business Development Strategy – Towards a Net Zero Carbon Society by 2050 (including forwardlooking information).

Copyright© 2021 INPEX CORPORATION. All rights reserved.