Exploration & Production

Oil and Gas Upstream
Business Activities

Financial Assistance
JOGMEC provides equity capital and liability guarantees forJapanese special purpose companies (SPCs) as shown in thefollowing table. These financial assistances are subject to
JOGMEC’s evaluation in terms of technical and commercialrisks.

At the time JOGMEC succeeded Japan National Oil Corporation (JNOC) in 2004, it provided fi nancial assistance for about
20 SPCs. Today the number has increased to about 50, withsome projects coming into commercial production in the nearfuture.

Percentage Limit of Amount of Financial AssistanceJapanese Government

Equity Capital
Private-Sector Companies

Liabilityguarantee

Equitycapital

JOGMECLoans
Liability guarantee

Equitycapital

BanksSPC
EquitycapitalSpecial Purpose Company(SPC)

Private-sector Companies

Liability Guarantee

Exploration

50%/75%*-Development

50%50%/75%*

Natural Gas
Liquefaction

50%50%/75%*

Asset Acquisition

50%/75%*50%/75%*

M&A

50%

50%

* Subject to fulfi lling requirements

Map of Projects that JOGMEC is Financially Supporting

Total Equity Capital

JPY 546.4 billion(= $ 4.6 billion)

Liability Guarantee Balance

JPY 818.5 billion(= $ 6.8 billion)$1= 120

Equity Capital

Liability Guarantees(Mar. 2017)

Greenland : Equity Capital (Exploration)
JOGMEC-assisted Greenland Petroleum Exploration Co., Ltd (GreenPeX), a SPC of Japanese upstream companies, wassuccessfully awarded two exploration licenses in partnership with Chevron and Shell, in December 2013, as a result of theLicensing Round 2012/2013 held for the Northeastern Greenland Sea Area.
Since 1989, JOGMEC, formerly known as JNOC, has been a member of the KANUMAS project, a regional-seismic programfor developing the hydrocarbon potential of offshore Greenland. The KANUMAS project was conducted by Statoil, BP, ExxonMobil, Chevron, Shell, JNOC and Nunaoil (National Oil Company of Greenland), and in return, each participant wasgranted preferential consideration for exploration and exploitation licenses of the area. In February 2012, JOGMEC approved equity fi nancing to GreenPeX.

Block 9Chevron(U.S.)
29.1667%

GreenPeX(Japan)29.1667%

Shell(U.K./Netherlands)
29.1667%

Nunaoil(Greenland)
12.5%

Greenland
Block 14

EquityCapital

JOGMECUp to 75%
INPEX, JX,JAPEX, MOECO(Japan)Exploration & Production

Oil and Gas Upstream
Business Activities

Geological and Geophysical Surveys
JOGMEC conducts geological and geophysical surveys inclose cooperation with host countries to assess explorationand production potentials. JOGMEC’s technical survey reports have been benefi cial to, and used by, host countries forpromoting new E&P opportunities. Since 1979, JOGMEC andits predecessor, Japan National Oil Corporation (JNOC), haveconducted 64 geological and geophysical surveys in 28 coun-tries (including surveys currently in progress).
JOGMEC’s surveys have been applied to investigating: western onshore Kenya, offshore Seychelles, onshore Cambodia,southern offshore Vietnam, northeastern offshore Greenland,Banda Outer Arc offshore East Indonesia, onshore Iraq, southern and northwestern areas (deep sea) in the Gulf of Mexico,and the Orinoco heavy oil belt in Venezuela.

Map of JOGMEC’s G&G Survey Projects
64 projects in 28 countries since 1979

23 49

2340
51
55
3457 4739

3638 3144

JNOC (1979-2003): 1980s: 1990s: 2000s

(23)
(21)
(1)

13
18

352643

21

27

16

28
4252

14

JOGMEC (since 2004): solo project(15): w/Japanese Co (4)

6460
11 45
20 9 4876163104111525 283024
5 4 56375964662 585035329173329 54
12193222Survey category: G&G study: Seismic acquisition: Exploratory drilling(Mar. 2016)

Framework for JOGMEC’s G&G Survey Program

JOGMECOperating Committee
Submit Data and Tech Report

Survey Contract
Conduct the Survey
Participation from NOC/Gov.

End of the Survey
Commercial Petroleum Contract
Further Exploration & Production by Japanese Oil Company(ies)JapaneseOilCompany(ies)

NOC/Government

Exclusive Right of the Survey

Contractors

All costs paid by JOGMEC

Basic Agreement

Kenya
In April 2012, JOGMEC signed a Joint Survey Agreement with the National Oil Corporation of Kenya (NOCK) for geological and geophysical evaluation in wester n Kenya. Together, JOGMEC and NOCK are conducting
gravity, magnetic and seismic surveys.
Joint Geological Survey with NOCKSeychelles
In August 2013, JOGMEC signed a Joint Survey Agreement with the Ministry Responsible for Hydrocarbons and PetroSeychelles, for the evaluation of hydrocarbon potential in offshore Seychelles under the Exploration
License granted by the Government of Seychelles.
Seismic Survey in Offshore Seychelles