Note: The following press release is an English translation of the Japanese-language original

March 6, 2018
Company Name:
Representative:
Security Code:Inquiries:
Tel.:Japan Petroleum Exploration Co., Ltd. (JAPEX)
Hideichi Okada, President
1662 (First Section of Tokyo Stock Exchange)
Media and Investor Relations Dept.
+81-3-6268-7110

Notice of Recognition of Extraordinary Income and Extraordinary Loss
Regarding Determination of Subsidy Amount for Construction of Soma LNG Terminal
Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that it will recognize extraordinary incomeand extraordinary loss in the fourth quarter of the fiscal year ending March 31, 2018 (from January 1 toMarch 31, 2018), by the determination of subsidy amount concerning construction of Soma LNG Terminal(hereinafter "Soma project").
1. Recognition of Extraordinary Income (Subsidy income)
JAPEX received the notice of determination for the subsidy amount concerning Soma project based on“Subsidy Program for New Business Establishment in the Areas Recovering from Tsunami and Nuclear
Disaster towards Employment Creation” by the Ministry of Economy, Trade and Industry of Japan.
Following the notice, it will recognize 5,000 million yen of subsidy income to extraordinary income in thefourth quarter of the fiscal year ending March 31, 2018.
2. Recognition of Extraordinary Loss (Loss on reduction of non-current assets)
JAPEX will deduct the subsidy in calculating the carrying amount of the asset, therefore it will recognize
loss on reduction of non-current assets to extraordinary loss in the fourth quarter of the fiscal year ending
March 31, 2018.
3. Impact on the Consolidated Financial Statements
The impact of this matter on the consolidated financial forecasts for the fiscal year ending March 31, 2018is already recognized in the forecasts announced on February 9, 2018.

(Appendix) Outline of Soma LNG Terminal

1/2

(Appendix) Outline of Soma LNG Terminal
Name
Site
Applicable Law
Site Area
Receiving Facilities

Storage Facilities
Vaporizers
Shipping Facilities
Commencement ofOperation

Soma LNG Terminal
Shinchi Town, Fukushima prefecture (No.4 wharf of Soma Port)Gas Business Act
Approximately 20 hectare
1 for LNG ocean vessel (125,000 - 210,000m3 class)
1 for LPG coastal vessel (2,500m3 class: sharing with shipping by LNG coastalvessel)
1 LNG tank (ground-type PC(*)model 230,000 kiloliters)
2 LPG tanks (spherical shape 1,000 tons)
2 lines (7.0Mpa, 75 ton/h: including 1 backup line)
1 for coastal vessel (maximum 4,800 m3 class)
5 lanes for LNG tank truck (30ton/h)March, 2018 (planned)*now under commissioning and preparation process(*) PC (Pre-stressed Concrete) is a form of concrete which is "pre-stressed" by being placed under compression prior to
supporting any loads beyond its own dead weight and can prevent crack by tensile stress, and this type of concrete often
uses for a lot of ground-type LNG tanks.
(Note) In addition to the above as the first phase, the second phase to construct additional ground-type LNG storage tankwith a capacity of 230,000 kiloliters (No.2 tank) and additional LNG vaporization equipment has been started in April
2017, and those facilities of the second phase are planned to commence commercial operation in spring 2020 at the sametime on commencement of commercial operation on the Fukushima Natural Gas Power Plant.

###2/2