Note: This material is an English translation of the Japanese-language original.

Financial Results

for the Fiscal Year Ended March 31, 2021

May 13, 2021

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

Contents

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Future Direction of JAPEX’s Business
Ⅲ. Financial Results
for the Fiscal Year Ended March 31, 2021
Ⅳ. Financial Forecasts
for the Fiscal Year Ending March 31, 2022

Note) This material also serves as the presentation material for the financial results briefing to be held for securities analysts
on May 14, 2021.

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

2

Contents

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Future Direction of JAPEX’s Business
Ⅲ. Financial Results
for the Fiscal Year Ended March 31, 2021
Ⅳ. Financial Forecasts
for the Fiscal Year Ending March 31, 2022

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

3

I. Financial Highlights and Business Progress

Introduction: Change of Crude Oil Price Assumption[May 2018]

60USD/bbl of crude oil (JCC) price assumption for the Medium-term Business Plan 2018-2022(Base of the ROE target more than 5% in FY2022 and the economic evaluation of business in the medium to long term)

Recent Business Environment Occur the irreversible structural changes in various areas such as energy demand and environmental
issues, due to the prolonged effects of COVID-19 pandemic and global decarbonization.
 Considered the possibilities to remain demands for fossil fuels low for a while.
 Stimulating Green Recovery will be the mainstream when recovering global economics from COVID-19
pandemic.
 Recognized a probability for further acceleration of the decarbonization trend.
[March 2021]

Lowered to 50USD/bbl of the crude oil (JCC) price assumption for Medium-to-long term
Decided based on the outlook changes in our business environment and global trends for rising carbon prices.

Revaluated of the JAPEX group's assets based on the revised oil price assumption

FY2020: Recorded Impairment losses of 16.3 billion yen on domestic business assets

Shed unprofitable projects to improve capital efficiency


FY2021: Decided to sell all ownership interests of the shale gas project in Canada(expected to recognize a loss of 39.4 billion yen on the interests transfer)

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

4

I. Financial Highlights and Business Progress

Financial Highlights(Billion Yen)

FY3/20 (a)FY3/21 (a)FY3/22 (f)Operating profit

14.2

4.1

8.2

Ordinary profit

32.6

10.0

15.7

Profit (loss) attributable to owners of parent

26.8

(2.7)

(28.3)

Crude oil price (CIF)

USD/bbl

68.11

42.91

60.00

JPY

¥50.0

¥50.0

¥50.0

Cash dividends per share (full-year)
FY3/21 (FY2020) Results

E&P Business: Profit declined due to a significant drop in crude oil prices and a decline in sales volume by COVID-19 pandemicInfrastructure/Utility Business: Profit increased due to a start of electricity sales with the operation commencement of the
Fukushima Natural Gas Power Plant*

Extraordinary loss: Impairment losses on domestic business assets, provision for disaster losses, and others

FY3/22 (FY2021) Forecasts


E&P Business: Improvement in profit mainly in diluted bitumen sales due to higher oil price outlook



Infrastructure/Utility Business: Expecting marginal gain on LNG procurement despite the absence of one-time factors such as theimpact of the Japan Electric Power Exchange (JEPX) price hiked in FY3/21



Extraordinary losses: Loss on transfer of interests in the shale gas project in Canada

Dividend Policy


FY3/21 annual dividend (result):

50.0JPY per share (Interim and year-end dividend of ¥25.0 respectively)

FY3/22 annual dividend (forecast): 50.0JPY per share, based on the basic policy of maintaining stable dividends*Operated by Fukushima Gas Power Co., Ltd., which is invested by 5 companies as partners, including JAPEX
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

5

I. Financial Highlights and Business Progress

Long-term Vision and Medium-term Business Plan
Long-term Vision 2030
“Growth to the Comprehensive Energy Company Utilizing Oil and Gas E&P and its Supply Basis”
TargetRealize E&P and Non-E&P profit composition ratio to 6:4 in 2030
*Sum of Operating profit and equity method investment income

Medium-term Business Plan 2018-2022
Improve financial position and diversify business as the first five years to realize the Long-term Vision
TargetAchieve ROE of 5% or more in FY2022*Under assumed JCC price of USD60/bbl

Profit attributable to owners of parent (Billion Yen)

① Business assets revaluation

 Recorded an impairment losses of 16.3 billion
yen on business assets in domestic oil and gas
fields under extraordinary losses

26.8
14.7

② Decision to sell all ownership interest of
the shale gas project in Canada(2.7)

 Expected to recognize 39.4 billion yen of loss
on transfer of interest under extraordinary
losses(28.3)
ROE【Major Occurrences in FY2020 and FY2021】

FY2018FY2019FY2020

FY2021

3.5%

6.5%

-

-

Ordinary profit

bn.

12.5

32.6

10.0

15.7

Extraordinary income

bn.

0.5

(0.7)

(17.3) ①(39.4) ②

Net income

bn.

14.7

26.8

(2.7)

(28.3)FY2022

FY20305％ or more

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

Due to the above one-time losses,
net loss is expected for both FY2020 resultsand FY2021 forecasts

6

I. Financial Highlights and Business Progress

FY2020 Progress to the Medium-Term Target
E&P Business

Infrastructure/Utility Business

New Business Development

Maintain “RRR*1＞1”

Promote Energy Supply witha Low Environmental Impact

Generate New Businesswith Environmentally Friendly

Target and Progress

Target and Progress

Target and Progress Decreased proved reserves mainly
due to lowered oil price assumption

 1.48 million tons (LNG
equivalent) of transaction to
the 1.6 million tons of the target

 Promoting demonstration of
CCS/CCUS technology forpractical use

 3.0 billion kWh of sales volume
to the 2.8 billion kWh of theelectricity sales target

 Examining new business models
for LNG supply as new businessseeds

 Undertaking to consider additional
development and new explorationin Japan, new overseas interests
acquisition, and to optimize ourbusiness portfolio

Proved reserves （MMBOE*2)

中*1 Reserve Replacement Ratio*2 Barrels of Oil Equivalent*3 Barrels of Oil Equivalent per Day

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

Production volume (MBOED*3）

7

I. Financial Highlights and Business Progress

FY2020 Progress and FY2021 Outlook on Main Projects■Business development：□Growth investment／●Related to demonstration or examination phase：○ Growth investment

FY2020 result

FY2021 outlook[Maintain and Increase Domestic Production][Maintain and Increase Domestic Production][Overseas Projects with Profitability Improving][Business Portfolio Examination]

 Started production in Yufutsu shallow reservoir in
Hokkaido (June 2020)

E&P Decided additional development around Katakai Gas Field
in Niigata (April 2021)

 U.K. North Sea Seagull Project: Development
 Iraq Garraf Project: Ongoing development work toincrease production•

Timing of production commencement is unforeseeable under
Covid-19 pandemic.

[Business Foundation Against Oil Price Volatility]
 Full-scale commercial operation of Fukushima Natural
Gas Power Plant (August 2020)

I/U*

Ongoing○ Joining 2 local commissions studying the carbon neutral
industry settled by Niigata Prefecture and MLIT/METI(January 2021)○ Began a contracted feasibility study aiming to realize
carbon recycling businesses in Tomakomai, Hokkaido(March 2021)○ Participated in study groups on new LNG supply models* Infrastructure/Utility
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

8

In Japan: Pursuing to maintain and increase production
volume and reserves in medium-to-long termOverseas: Examining new interests acquisition

The Renewable Energy Development

 Proceeding stably the examinations of ongoing projects
aiming for the final investment decision[Renewable Energy Development] Chofu Biomass Power Generation Project: Participatingin the feasibility study (November 2020)
 Participating in 3 study consortiums of large-scale
offshore wind power generation business in Japan[New Business Seeds Identification]

New
Buz

 Decided to sell all ownership interests in the shale gas
project in Canada (May 2021)

OngoingDeveloping new clients and increasing sale volume ofnatural gas/Competitive-price LNG procurement
Examining new opportunities to participate in or acquire
the renewable energy development projects

Reorganizing the Efforts to dateand Setting New Targets
in Line with “JAPEX 2050”,
Which is Our Direction
toward a Carbon-neutral Society

I. Financial Highlights and Business Progress

ESG Initiatives
Environment

FY2020 Result

FY2021 Outlook (Planned timing)[Contribution to the Low-carbonization]

 Established Environment Business Promotion Dept. as a
dedicated organization promoting environmentally-friendly
businesses (January 2021)[Stable Energy Supply/Contribution to Society] Full-scale commercial operation of Fukushima Natural Gas
Power Plant (August 2020)

Social[Contribution to Society] Donated oil adsorption fiber “Abura Kuraudo” for Mauritius
oil spill (August 2020)[Response to the TCFD*1 Recommendations] Established Risk Management Committee: Consolidated
the existing risk management systems comprehensively
including risks of climate change related (April 2021)
 Set GHG emission target and monitoring system (May 2021)
 Introduce third-party evaluation for disclosed information[Developing a Rewarding Work Environment] Official Introduction of the work-from-home system (April
2021)

 Strengthen our efforts to respect human rights based oninternational rules and others[Developing a Rewarding Work Environment]

 Established the “JAPEX Health Management Declaration(October 2020)

 Named “the Certified Health & Productivity Management
Outstanding Organizations Recognition Program" for 5
Years in a Row (March 2021)
 Recognized the Certification “Eruboshi” (March 2021)

Governance[Strengthen Corporate Governance Structure] The number of outside directors from 3 to 4 (June 2020)
 Changed the term of Directors from 2 to 1 year (June 2020)
 Revised remuneration plan for Directors (June 2020)[Promotion of Compliance] Participated in UN Global Compact（May 2020）[Risk Management] Strengthened BCP*2 structure under COVID-19 pandemic*1 Task Force on Climate-related Financial Disclosures, *2 Business Continuity Plan
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

9[Strengthen Corporate Governance Structure] Established Sustainability Committee: Integrated andstrengthened the existing meeting bodies for discussion of
medium-term business plan and ESG related matters (April
2021)

I. Financial Highlights and Business Progress

Financial Position and Fund Allocation Policy
FY2022 target

Consolidated
Financial Position

FY2019FY2020：￥119.9bn.

¥ 129.4bn.

Investment Securities：￥88.9bn.

¥ 105.0bn.

Interest-bearing debt*2：￥140.8bn.

¥ 118.7bn.

EBITDA*3：￥58.2bn.

¥ 37.1bn.

Debt-to-EBITDA ratio：

Approx.2.4

Approx.3.2

Reduce interest-bearing debt by approx. ￥100 to ￥120 bn.

Place equal weight on E&P and non-E&P in terms of facilitation of
growth investment, under the financial discipline of the Debt-toEBITDA ratio at less than 2.0 times

Cash and deposit *1

Further enhance shareholder returns over the mid-to-long term, inline with a basic policy of securing a long-term stable stream ofdividendsFund Allocation Policy for the FY2019-2022, results and outlook
FY2019-2022 policy
Improve the profitability of

FY2019-2020 cumulative
investment results

Allocation

FY2021-2022 outlook① existing projects

Approx. ￥60 bn.

→

Approx. ￥20 bn.

→② Reduce interest-bearing debt

Approx.￥55 bn.

→

Approx. ￥20 bn.

→

Approx.￥65 bn.

→

Approx. ￥10 bn.

→￥9 bn. or more *4→￥50.0 per share ofannual dividend→

Continue stable payoutof dividends-→

Partially sold→Continue to verify③ Facilitate growth investment④

Stable streamline of dividends andenhance shareholders return

Verify the propriety of its⑤ cross-shareholdings(Increased 10.0 yen from initial forecast)

Follow the initial policy(Planned ￥50.0 per share ofdividend in FY2021)*1 Cash and deposits and investment in existing projects do not include remaining funds set aside for the Garraf Project (FY2019 approx. ¥40.1 bn. / FY2020 approx.32.9 bn.) as well as additional investment to beallocated to achieve the daily production of 230,000 barrels.
*2 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities.
*3 EBITDA is the total of operating income, depreciation and interest and dividends received on investment cash flow
*4 Funds to be allocated for shareholder returns are based on the premise that amount of dividends being paid remain unchanged from the dividend forecasts for FY2019
annual dividends. (￥40.0 or more per share of annual dividends)

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

10

Contents

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Future Direction of JAPEX’s Business
Ⅲ. Financial Results
for the Fiscal Year Ended March 31, 2021
Ⅳ. Financial Forecasts
for the Fiscal Year Ending March 31, 2022

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

11

Ⅱ. Future Direction of JAPEX's Business

Review of Current Medium-term Business Plan
Medium-term Business Plan 2018 - 2022 (formulated in May 2018)
Revaluation of the existing businesses
due to change of business environment

Creating environmentally friendly businesses
for a sustainable society

 Lowered our medium-to-long term crude oil priceassumptions (revised JCC 60 to 50 USD/bbl)• Based on the outlook changes in our businessenvironment and upward trend in carbon prices

 Established Renewable Energy Business Dept.
 Established Environmental Business Promotion Dept.
and New Business Promotion Dept. for investigationof new environmentally friendly businesses.

Revaluated major business assets
and divested the unprofitable projectto improve the capital efficiency

Clear requirement to companies
to achieve the Net-zero in 2050
by the Governmental direction and others

Recorded Impairment
losses on domestic
business assets
in FY2020

Decision to sell
all ownership interestof Shale Gas project inCanada in May 2021

Formulation of “JAPEX2050”
toward the realization of a carbon-neutral society
in May 2021

The business environment surrounding JAPEX has changed significantly
compared to the time formulated the current medium-term business plan

Planning to revise the Medium-term business plan within FY2021
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12

Ⅱ. Future Direction of JAPEX's Business

Outline of “JAPEX 2050” -1
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 of
CO2 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 as
blue 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 oil
Strengthen our responses for meeting various future
demands to LNG

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


13

Recognize 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

Ⅱ. Future Direction of JAPEX's Business

Outline of “JAPEX 2050” -2: 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 Areas
to 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

* 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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14

2050

Contents

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Future Direction of JAPEX’s Business
Ⅲ. Financial Results
for the Fiscal Year Ended March 31, 2021
Ⅳ. Financial Forecasts
for the Fiscal Year Ending March 31, 2022

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

15

Ⅲ. Financial Results for the Fiscal Year Ended March 31, 2021

E&P Business Sales (Year-on-Year)
FY3/20(a)Net sales：Million Yen

Sales volume

FY3/21(a)Net sales

Sales volume

ChangeNet sales

Sales volume- ① (77,960)

(44%)

(21%)

(55,235)

(43%)

(16)

(5%)

(5,965)

(40%)

(584)

(52%)

(27,104)

(60%)

(9)

(1%)

③ (22,166)

(33%)

(319)

(20%)

(23,330)

(52%)

+39

+9%

+605

+27%

-

175,443-

97,482-

2,924

128,152

2,313

72,916(610)

304

14,800

287

8,835

1,123

45,372538

18,268 ②Purchased crude oil

1,496

67,9791,486

45,812

Diluted bitumen*2

1,639

45,025

1,319

21,695 ④

431

2,265

470

2,870

E&P Business-Net sales

Breakdown
Crude oil
Crude oil
- Japan
Crude oilThousand KL*1- overseas

Natural Gas- Overseas＊3

Million M3

Main factors for change① Decrease in sales volume and price of crude oil (overseas), purchased crude oil and diluted bitumen② Decrease in sales volume and price of crude oil from Garraf Oil Field in Iraq
③ Decrease in sales price of purchased crude oil from SODECO④ Decrease in sales price and volume due to the reduction in production of diluted bitumen at the Hangingstone
Lease in Canada*1 Including the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Including the volume of 2 overseas subsidiaries (JAPEX Montney Ltd. and Japex (U.S.) Corp.)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

16

Ⅲ. Financial Results for the Fiscal Year Ended March 31, 2021

I/U Business Sales (Year-on-Year)
FY3/20(a)Net sales：Million Yen

Infrastructure / Utility

Sales volume

FY3/21(a)Net sales

Sales volume

Net sales-

88,688-

1,268

64,965

1,183

582

-

528

Thousand Ton

273

19,395284

Electricity

Million kWh

110

974

3,016

Others*1

-

-

3,353

-

Business-

Change101,301

Net sales

Sales volume-- ①+12,612+14%

Breakdown
Natural Gas- JapanMillion M3- Produced in Japan

LNG

51,291 ②

(85)

(7%)

(13,674)

(21%)

(54)

(9%)

-

-

+10

+4%

③ (3,803)(20%)

30,087 ④+2,906+2,638%+29,113+2,989%

-

+977

+29%

-

15,591

4,331-

Main factors for change① Increase in electricity sales volume and revenue of commissioned regasification of LNG② Decrease in sales price, decrease in sales volume mainly due to the economic stagnation by COVID-19③ Decrease in sales price④ Increase in electricity sales volume due to the commercial operation commencement of the Fukushima
Natural Gas Power Plant*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

17

Ⅲ. Financial Results for the Fiscal Year Ended March 31, 2021

FY3/21 Results (Year-on-Year)
Million Yen

FY3/20(a)FY3/21(a)ChangeNet sales

318,822240,078(78,744)(25%)

Gross profit

47,04236,534(10,507)(22%)

Operating profit

14,283

4,192(10,091)(71%)

Ordinary profit

32,635

10,001(22,633)(69%)

Profit attributable to owners of parent (loss)

26,815(2,725)(29,541)-

Oil Price, Exchange Rate and Sales Price
FY3/20(a)FY3/21(a)ChangeWTI

USD/bbl

57.14

40.87

(16.27)

Crude oil price (CIF)

USD/bbl

68.11

42.91

(25.20)Exchange rate

JPY/USD

109.15105.86(3.29)JACOS Diluted bitumen ＊1

USD/bbl

39.85

25.06

(14.79)JML Natural gas*2

CAD/mcf

1.77

2.14

+0.37

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

18

Ⅲ. Financial Results for the Fiscal Year Ended March 31, 2021

Operating Profit Result (Year-on-Year)
E&P BusinessBillion Yen

Overseas：(13.3 bn.)
2.6 bn. → (10.7 bn.)•
Decrease in profit of diluted bitumen sales due to falling
crude oil prices and deteriorated WCS differential
Domestic：(14.2 bn.)
22.6 bn. → 8.4 bn.
•
Decrease in profit due to falling crude oil prices•
Decrease in sales volume due to natural decline inproduction and decline in price* for domestic gas* Internal transaction price from E&P Business to Infrastructure/Utilities
Business for the relevant internal control

Infrastructure/Utility Business+17.4 bn.
•••

(5.2 bn.) →12.2 bn.

Increase in electricity sales volume due to thecommercial operation commencement of the Fukushima
Natural Gas Power Plant and increase in revenue ofcommissioned regasification of LNG
Increase in marginal gain on procurement of LNG forgas business and power generation fuelRecording of one-time gains due to the hike in the JEPX
spot market price

Others*(5.7 bn.) →(5.7 bn.)*Operating income (contracting, petroleum products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

19

Ⅲ. Financial Results for the Fiscal Year Ended March 31, 2021

Net Income Result (Year-on-Year)
Billion Yen

SODECO
EMPI(6.2 bn.)+1.3 bn.
Impairment losses (15.8 bn.)
Disaster losses(0.9 bn.)

JACOS(12.8 bn.)
Japex Garraf (0.4 bn.)

Net
incomeJML
Japex Garraf(1.8 bn.)(1.2 bn.)Non-operating income(loss) (12.5 bn.)

Operating profit (loss) *(10.0 bn.)

OthersExtraordinary
incomeIncometaxes

Profitattributable
to noncontrollinginterest

11.9

3.9

(0.7)

4.7

0.2

5.8

0.6

(17.3)

(1.9)

(2.6)

OthersForeignexchange
gains andloss

Equity on
earnings

(5.2)

(5.7)

2.4

12.2

(5.7)

(0.6)

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

20

FY3/20(a)

E&P
overseas

E&P
Japan

I/U

FY3/20(a)

2.6

22.6

FY3/21(a)(10.7)

8.4

Net
incomeFY3/21(a)Contents

Ⅰ. Financial Highlights and Business Progress
Ⅱ. Future Direction of JAPEX’s Business
Ⅲ. Financial Results
for the Fiscal Year Ended March 31, 2021
Ⅳ. Financial Forecasts
for the Fiscal Year Ending March 31, 2022

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

21

Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

E&P Business Sales Forecasts
FY3/21(a)Net sales：Million Yen

Sales volume

FY3/22(f)Net sales

Sales volume

ChangeNet sales

Sales volume

Net sales-

97,482-70,034

2,313

72,916818

32,397(1,494)(65%)(40,519)

(56%)

287

8,835

281

11,405(6)(2%)+2,570+29%

538

18,268512

19,928(26)(5%)+1,660+9%Purchased crude oil

1,486

45,812

24

1,063

②

(1,462)(98%)(44,749)(98%)

Diluted bitumen*2

1,319

21,695

1,444

36,661

③

+124

+9%

+14,966

+69%

470

2,870

127

975

④

(342)

(73%)

(1,894)(66%)

E&P Business

-

-

-

① (27,447)(28%)

Breakdown
Crude oil
Crude oil
- Japan
Crude oilThousand KL- overseas*1

Natural Gas- Overseas＊3

Million M3

Main factors for change① Decrease in sales volume due to a reevaluation of the criteria for recording net sales resulting from theapplication of the “Accounting Standard for Revenue Recognition”, and increase in sales price② Decrease in sales volume of purchased crude oil from SODECO due to application of the “Accounting Standard
for Revenue Recognition”③ Increase in sales price, improvement in WCS differential, and increase in sales volume due to the reduction in
production of diluted bitumen in FY3/21 at the Hangingstone Lease in Canada④ Decrease in sales volume due to the interests transfer of the Canadian shale gas project*1 Include the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Include the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

22

Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

I/U Business Sales Forecasts
FY3/21(a)Net sales：Million Yen
Infrastructure/Utility
Business

Sales volume-

FY3/22(f)Net sales

Sales volume- 101,301

ChangeNet sales

Sales volume

Net sales- 101,706

-

-

+405

+0%

48,194 ① (164)(14%)(3,097)

(6%)

(36)

(7%)

-

-

+25

+9%

+4,470+29%

28,944 ③ +138

+5%

(1,142)

(4%)

-

+174

+4%

Breakdown
Natural Gas- Japan

1,183

51,291

1,018

528

-

491

Thousand Ton

284

15,591

310

Million kWh

3,016

30,087

3,154

-

4,331

-

Million M3- Produced in Japan

LNG
Electricity
Others*1--

20,061 ②
4,505-

Main factors for change① Decrease in sales volume due to application of the “Accounting Standard for Revenue Recognition”, and sales
volume for the commissioning of the Fukushima Natural Gas Power Plant in the FY3/21② Increase in sales volume and sales price③ Despite the increase in electricity sales volume due to the year round operation of the Fukushima Natural Gas
Power Plant, sales are expected to decline due to the absence of one-time gains from the hike in the JEPX
spot market price in FY3/21*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

23

Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

FY3/22 Forecasts
Million Yen

FY3/21 (a)FY3/22 (f)ChangeNet sales

240,078

211,153(28,924)(12%)

Gross profit

36,53440,038+3,503+10%

Operating profit

4,192

8,215

+4,023+96%

Ordinary profit

10,001

15,740+5,739+57%

Profit attributable to owners of parent (loss)(2,725)(28,317)(25,591)-

Oil Price, Exchange Rate and Sales Price
FY3/21(a)FY3/22(f)ChangeWTI

USD/bbl

40.87

54.74

+13.87

Crude oil price (CIF)

USD/bbl

42.91

60.00

+17.09Exchange rate

JPY/USD

105.86105.00(0.86)JACOS Diluted bitumen＊1

USD/bbl

25.06

38.44

+13.38JML Natural gas*2

CAD/mcf

2.14

2.68

+0.54

*1 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*2 Natural gas sales price of JAPEX Montney Ltd. (Excl. Royalty)
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

24

Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

Operation Profit Forecasts
E&P Business
Overseas: +8.6 bn.
(10.7 bn.) → (2.0 bn.)•
Improvement in the diluted bitumen sales due to a riseof crude oil prices and WCS differential
Domestic: +2.8 bn.
8.4 bn. → 11.2 bn.
•
Decrease in profit due to falling crude oil prices

Infrastructure/Utility Business(6.5 bn.) 12.2 bn. → 5.7 bn.
•
Absence of one-time gains due to the hike in the JEPX
spot market price in FY3/21•
Decrease in marginal gain on procurement of LNG forgas business and power generation fuel•
Increase in electricity sales volume due to the year
round operation of the Fukushima Natural Gas Power
Plant

Others*(0.9 bn.)(5.7 bn.) → (6.6 bn.)•
Decrease in profit of contract services, and others*Operating income (contracting, petroleum products and commodities, andothers) not belonging to the above business units, less headquarters
administrative expenses* The amounts in the operating income breakdown by business segment are the figures for the Group’s internal management
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

25

Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

Net Income Forecasts
Billion Yen

Losses on JML’s interests transfer（FY3/21）Impairment losses（FY3/21）Disaster losses

JACOS
JML

＋7.0 bn.
＋1.4 bn.

Japex Garraf ＋1.7 bn.
JML(1.1 bn.)
SODECO
DGN

Net
income(39.4 bn.)
＋16.3 bn.
＋0.9 bn.

(＋1.8 bn.)(+0.5 bn.)Non-operating income(loss) +1.7 bn.

Operating profit (loss)＊+4.0 bn.

Net
incomeFY3/21(a)E&P
overseas

E&P
Japan

I/U

OthersForeignexchange
gains andloss

Equity on
earnings

OthersExtraordinary
incomeIncometaxes

Profitattributabl
e to noncontrollinginterest

FY3/21(a)(10.7)

8.4

12.2

(5.7)

0.6

5.8

0.6

(17.3)

(1.9)

(2.6)

FY3/22(f)

(2.0)

11.2

5.7

(6.6)

0.0

8.2

(0.6)

(39.4)

4.5

0.0

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

26

FY3/22(f)Ⅳ. Financial Forecasts for the Fiscal Year Ending March 31, 2022

Cash Flows and Debt
Million Yen

FY3/20(a)FY3/21(a)Full year

Full year

Cash flows from operating activities

FY3/22(f)Full year
May 1369,89543,26334,919Depreciation

25,19022,59921,001

Recoverable cost (Recovery)

41,04015,196

17,972

Cash flows from investing activities(18,701)(6,453)(22,304)

Purchase of property, plant andequipment(7,566)(15,153)(13,959)

Recoverable cost (Payments)(30,226)(14,971)(22,863)

Cash flows from financing activities(13,743)(15,626)(40,158)

Interest-bearing debt*1

140,848

118,71082,500EBITDA*2

58,295

37,15040,870

2.4

3.2

2.0

Debt-to-EBITDA ratio*1 Interest-bearing debt includes lease obligations, retirement benefit liabilities and contingent liabilities*2 EBITDA is the total of operating profit, depreciation, interest and dividends received on investment cash flow
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

27

Appendix

1. Net Sales

2. Financial Results
3. Segment Profit

4. Price Assumptions for FY3/22 Forecasts

5. Sensitivities Analysis on FY3/22 Forecasts Basis
6. Main Business and Major Assets
7. Glossary

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

28

1. Net Sales - E&P BusinessMillion Yen FY3/20(a)Full year
Sales

Full year

1Q-4Q

5.13

97,48270,034

2,924

687

438

321

865

2,313

818

128,152

15,936

12,515

9,670

34,793

72,91632,397

304

60

78

72

76

287

281

14,800

1,800

1,926

2,263

2,845

8,835

11,405

1,123

168

18

17

334

538

512

45,372

4,393

307

524

13,042

18,26819,928

1,496

458

341

231

454

1,486

24

67,979

9,742

10,281

6,882

18,90545,812

1,063

1,639

410

203

324

381

1,319

1,444

45,025

6,258

1,499

6,313

7,623

21,69536,661

431

111

118

111

129

470

127

2,265

709

627

592

941

2,870

975

57.14

46.17

27.94

41.02

42.77

40.87

54.74

68.11

44.41

33.34

44.51

49.99

42.91

60.00

109.15108.04106.88105.46104.03105.86105.00

Sales volume of Crude oil - overseas *1(Thousand KL)
Net sales
Sales volume of Purchased crude oil(Thousand KL)
Net sales

Sales volume of Diluted bitumen(Thousand KL)
Sales volume of Natural gas(Million M3)

Net sales
WTI（USD/bbl）
Exchange rate (JPY/USD)

Full year

43,358Net sales*44Q

16,576(Thousand KL)

Crude oil price (CIF) (USD/bbl)

3Q

14,642

Sales volume of Crude oil - Japan-overseas *3

2Q

22,904(Thousand KL)

Net sales *2

1Q

175,443
Sales volume of Crude oil
Net sales

FY3/22(f)FY3/21(a)*4Diluted bitumen*2(USD/bbl)

39.85

22.30

11.29

29.77

31.25

25.06

38.44

JML natural gas*5(CAD/mcf)

1.77

2.36

1.85

1.89

2.43

2.14

2.68

*1 Including the amounts of 3 overseas subsidiaries (Japex Garraf Ltd., JAPEX Montney Ltd. and Japex (U.S.) Corp.)*2 Royalty is excluded in the net sales and price of diluted bitumen*3 Including the volume of 2 overseas subsidiaries (JAPEX Montney Ltd., and Japex (U.S.) Corp.)*4 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*5 Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

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

29

1. Net Sales - I/U BusinessMillion Yen FY3/20(a)Full year

Sales

FY3/22(f)FY3/21(a)
1Q

2Q

3Q

4Q

Full year

Full year

1Q-4Q

5.13

88,68820,99722,98523,70933,609101,301

101,706

1,268

248

271

292

369

1,183

1,018

64,965

12,79812,26011,59914,63351,291

48,194

582

109

106

139

172

528

491

273

53

41

118

70

284

310

19,395

3,597

2,878

4,583

4,531

15,591

20,061

110

448

825

806

935

3,016

3,154

Net sales

974

3,493

6,548

6,612

13,43230,08728,944

Others*1

3,353

1,108

1,297

914

1,011

4,331

4,505

Sales volume of Natural gas– Japan (Million M3)
Net sales
Sales volume of Natural gas
Produced in Japan (Million M3)

Sales volume of LNG(Thousand ton)
Net sales
Sales volume of Electricity(Million kWh)

*1 Including the revenue from contracted transportation of natural gas and commissioned regasification of LNG

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

30

2. Financial Results
Million Yen

FY3/20(a)Full year

Net sales

FY3/21(a)
1Q

2Q

3Q

FY3/22(f)4Q

Full year

Full year

1Q-4Q

5.13

318,82251,01847,10851,972

89,978240,078

211,153

175,443

22,904

14,642

16,57643,35897,48270,034

Infrastructure/Utility Business

88,68820,99722,98523,70933,609101,301

101,706

Others54,690

7,116

9,480

11,687

13,00941,294

39,412

Cost of sales

271,780

48,61940,623

42,11672,184

203,543

171,115Gross profit

47,042

2,399

6,485

9,856

17,79336,53440,038

893

206

180

319

283

989

784

SG&A expenses

31,864

7,443

7,325

7,713

8,869

31,352

31,037

Operating profit

14,283(5,250)(1,021)

1,823

8,640

4,192

8,215

Non-operation income

18,351(4,325)

3,759

2,065

4,309

5,809

7,525

1,096

216

117

36

40

412

160

Interest expenses(4,641)

(972)

(809)

(379)

(366)

(2,529)(868)

Dividend income

5,618

49

1,283

107

1,384

2,823

2,994

11,960

2,116

1,250

1,945

495

5,808

8,210

Provision for overseas investment

342

85

85

85

85

342

246

Foreign exchange gains and loss

2,425

(5,809)

1,837

319

3,012

(639)

-

Other

1,550

(10)

(6)

(49)

(341)

(408)

(3,218)32,635(9,575)

2,737

3,889

12,95010,001

15,740

(731)

(3)

(11)

(6)

(17,302)(17,324)(39,460)

31,903(9,578)

2,725

3,882

(4,352)(7,322)(23,719)

4,788

173

463

1,223

(3,783)(1,923)

4,586

299

(215)

(298)

(539)

(1,619)(2,673)

10

26,815(9,536)

2,561

3,198

1,050

(2,725)(28,317)

E&P Business

Exploration expenses

Interest income

Share of profit of entities accounted forusing equity method

Ordinary profit
Extraordinary income
Profit before income taxes
Income taxes
Profit attributable to non-controlling interests
Profit attributable to owners of parent

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

31

3. Segment Profit
Million Yen

FY3/20(a)Full year

Operating profit

Japan

Share of profit (loss) of entities
accounted for using equity
methodOperating profit (loss)

North America

Share of profit of entities
accounted for using equity
methodOperating loss

EuropeShare of profit of entities
accounted for using equity
methodOperating profit (loss)

Middle East

Share of loss of entities
accounted for using equity
methodOperating loss

Others*1

Share of profit of entities
accounted for using equity
methodAdjustments andEliminations*2
Amounts on consolidated
statement of income *3
*1
*2
*3

Operating profit (loss)

FY3/22(f)FY3/21(a)
1Q

2Q

3Q

4Q

Full year

Full year

1Q-4Q

5.13

18,834

790

4,558

4,426

12,212

21,98817,964

152

157

27

351

(856)

(319)

(214)

3,422

(4,223)(3,268)(554)(1,327)(9,374)

(828)

-

-

-

-

-

-

-

(164)

(42)

(18)

(35)

(35)

(132)

(196)

-

-

-

-

-

-

-

612

301

(83)

23

(76)

165

336

(8)

(2)

0

(2)

(4)

(10)

(11)

(1)

-

-

-

-

-

-

11,816

1,961

1,223

1,596

1,357

6,138

8,436

(8,419)(2,075)(2,207)(2,037)(2,132)(8,453)(9,060)14,283(5,250)(1,021)

1,823

8,640

4,192

8,215

Include the Sakhalin Oil and Gas Development Co., Ltd., Energi Mega Pratama Inc., and others
Mainly intersegment elimination and corporate expense.
Furthermore, Corporate expense represents mainly general and administrative expenses and experiment and research expense that are not allocated to reporting segments.
Segment profit (loss) is reconciled to operating profit in the consolidated statements of income.

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

32

4. Price Assumptions for FY3/22 Forecasts
Upper: from January 2020 to March 2021

Full year

Lower: from January 2021 to March 2022

WTI

USD/bblCrude oil price (CIF) *2

USD/bblExchange rate*2

JPY/USD

Jan.-Mar.

Apr.-Jun.

Jul.-Sep.

Oct.-Dec.

Jan.-Mar.

2020 (a)

45.10

28.54

41.02

42.77

-

40.87

2021 (f)54.00*1

55.00

55.00

55.00

-

54.74

2020 (a)

-

44.41

33.34

44.51

49.99

42.91

2021 (f)

-

60.00

60.00

60.00

60.00

60.00

2020 (a)-108.04106.88105.46104.03105.862021 (f)-105.00105.00105.00105.00105.002020 (a)

22.30

11.29

29.77

31.25

-

25.06

2021 (f)

39.06

38.24

38.19

38.23

-

38.44

2020 (a)

2.36

1.85

1.89

2.43

-

2.14

2021 (f)

2.68

-

-

-

-

2.68

Sales Price
JACOS
Diluted bitumen*3

USD/bblJML
Natural gas*4

CAD/mcf*1 Actual*2 Domestic sales price average of crude oil referring to crude oil (CIF) price and its conversion exchange rate
*3 Diluted bitumen sales price of Japan Canada Oil Sands Ltd. (Excl. Royalty)*4 Natural Gas sales price of JAPEX Montney Ltd. (Excl. Royalty)

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

33

5. Sensitivities Analysis on FY3/22 Forecasts Basis
FY3/22
Assumptions

Crude oil price

Crude oil price(CIF)
USD 60.00/bbl
WTI
USD 55.00/bbl

Exchange rate

JPY 105.00/USD

Natural gas
price in
CanadaCAD 2.68/mcf
JPY 80.00/CAD

Impacts on profit（Million Yen）
Fluctuation

OperatingprofitProfitattributable toowners ofparentMain factors for change

Increase factor “+” / Decrease factor “( )”+ Sales of oil and gas

560

450

(Increase in LNG procurement cost)

380

350

+ Sales of diluted bitumen

1 weaker
JPY against
USD

220

110

Increase by
1CAD/mcf

(280)

(260)

Increase by
1USD/bbl+ Sales of oil and gas(Increase in LNG procurement cost)(Increase in operation cost of theHangingstone lease)【Assumptions】
・Changes in equity method investment gain are not included in the above amount.
・In addition to the impact of exchange rate fluctuations shown on the above, translation adjustments of foreign-currency-denominated receivables and payables also occur.
Actual profits are influenced by various other factors besides crude oil prices and exchange rates.

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

34

6. E&P Business - Major E&P Projects
Canada Oil Sands Project
U.K. North Sea Seagull Project(Development)(Production)

Russia Sakhalin-1 Project(Production / Development)

Canada Shale Gas Project(Production / Development)

Oil and Gas Fields in Japan
Iraq Garraf Project(Production)

United States Tight Oil Project(Production / Development)(Production / Development)Indonesia Kangean Project(Production)● Block, lease or projects in which the JAPEX Group participates
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

35

6. E&P Business - North America
Canada Oil Sands Project
Project

Canada Shale Gas Project

Canada Oil Sands Co., Ltd. (CANOS)

company

JAPEX‘s share 94.58%
Overseas subsidiary：
Japan Canada Oil Sands Ltd. (JACOS)

Block

Hangingstone Leases (Operator)

Interest

75％ (JAPEX net 70.935%)

Project
company

JAPEX Montney Ltd. (JML)

Block

North Montney Area

Interest

10% (JAPEX net 5.5％ )Status

Production
StatusContinuing flexible operation in line with market

Operator

conditions with 20,000bbl/d level bitumen
productionGrossproduction
rate

Production/Development*JAPEX decided to sell all its ownership interest to
the operator in May 2021

Petronas Energy Canada Ltd.

Gross production 12,880,000M3/d, (Approx. 75,000boe/d)rate
as average for Jan.-Dec. 2020

20,000bbl/d

as average for Jan.-Dec. 2020

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

JAPEX’s share 55％

36

6. E&P Business - Europe/Middle East
U.K. North Sea Seagull Project

Iraq Garraf Project

Project
company

JAPEX UK E&P Ltd.

Project
company

Japex Garraf Ltd. JAPEX’s share 55%

Field

Garraf Oil Field

Block

Seagull Field

Interest

30% (JAPEX Net 16.5%)

Interest

15％ (JAPEX Net 15％)

JAPEX’s share 100％

StatusDevelopment

StatusOperator

Development work in progress to commencement
production at the end of 2021(Timing ofachievement is unforeseeable under Covid-19
pandemic situation)

Neptune E&P UK Limited

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

37

Production*1 and Development toward
Plateau production target of 230,000
bbl/d*2*1 Resumed production from mid-July 2020 aftersuspension of operations since mid-March 2020
*2 Reviewing the development plan in response to Covid19 pandemic situation

Operator

PETRONAS Carigali Iraq Holding B.V. (PCIHBV)

Gross
production rate

Approx. 56,000bbl/d (Average for Jan.-Dec. 2020,excl.126 days of production suspension period)6. E&P Business - Other Areas
Indonesia Kangean Project
Project
company

Energi Mega Pratama Inc.

Block

Kangean Block

Interest

100％ (JAPEX net 25%)

Status

Production

Operator

Kangean Energy Indonesia Ltd.

Gross
production
rate

5,210,000M3/d

Russia Sakhalin-1 Project

JAPEX’s share 25%
2 other affiliates(Approx. 32,000boe/d)
as average for Jan.- Dec. 2020

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

38

Project
company

Sakhalin Oil and Gas Development
Co., Ltd. (SODECO)

Block

Chayvo, Odoptu and Arkutun-Dagi
FieldsInterest

30%（JAPEX net 4.59%）

StatusDevelopment/ Production

Operator

Exxon Neftegas Ltd.

JAPEX’s share 15.29%

6. E&P Business – Japan | I/U Business
E&P Business – Oil and Gas Fields in Japan Operating 10 oil and gas fields in Japan•

Started crude oil production from shallow reservoir of the Yufutsu Oil and Gas Field in Hokkaido in June 2020

 Efforts to maintain and increase domestic oil and gas production volume and reserves••

Considering developments around the existing fields to maintain and increase the short-term production volume and reserves
Considering additional E&P potential leveraging national surveys aiming to increase reserves over the mid-long term

I/U Business - Domestic Natural Gas Supply
 Supplying domestic-produced natural gas along with LNG by our domestic natural gas supply network•••

Total length over 800 km of high-pressure gas pipeline network mainly consisting of Niigata-Sendai Gas Pipeline
LNG handling sites such as the Yufutsu LNG Receiving Terminal in Hokkaido, the Soma LNG Terminal at Fukushima, and Nihonkai
LNG Co., Ltd. Niigata Terminal in Niigata
LNG satellite system for supplying LNG in liquid form, utilizing various methods such as tank trucks, tanks on the rail, and coastal
vessel Commissioned works concerning the fuel LNG of the Fukushima Natural Gas Power Plant*1 such as receiving,storing, regasifying LNG, and supplying the regasified LNG to the power plant

I/U Business – Electric Power Fukushima Natural Gas Power Plant：in commercial operation (No.1: April 2020, No.2: August 2020)
 Renewable energy：Running 2 mega solar projects in Hokkaido, and examining development projects andbusiness participation opportunities, particularly in biomass power generation and large-scale offshore wind
power
●Currently ongoing projects of renewable energy• Biomass
 Chofu Biomass Power Generation Project：Participating in the feasibility study in December 2020
• Participatiing in consortiums to study to realize large-scale offshore wind power generation projects
 A project at Noshiro-town, Mitane-town, Oga-town offshore in Akita Prefecture (North Akita) A project at Akita central sea offshore A project offshore Yuza-town, Yamagata Prefecture*1

Executing operation and management work by Fukushima Gas Power Co., Ltd., invested 5 companies including JAPEX.

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

39

6. New Business Development
Next-generation Technology Development Methane hydrate development•

Participating in offshore production test of sand-layer type methane hydrate, as a member of Japan Methane Hydrate Operating Co., Ltd.

 Deep-sea mineral resources survey•

Participating in “Developing Innovative Technologies for Exploration of Deep Sea Resources” led by JAMSTEC, which is one of the Crossministerial Strategic Innovation Promotion Program (SIP) Phase 2 of Cabinet Office, as a member of the Research and Development
Partnership for Next-Generation Technology of Marine Resources Survey (J-MARES)

New Business Model Development
 CCS / CCUS••

CCS demonstration project in the Tomakomai area conducted by Japan CCS Co., Ltd.(JCCS): Conducting monitoring after
completing 300,000 tons (cumulative amount) of CO2 injection
Participating in “Research and development of CO2 storage technology for safe CCS implementation” of NEDO’s CCS demonstration
project, as a member of the Geological Carbon dioxide Storage Technology Research Association

 Considering new business opportunities, utilizing environmental technologies such as hydrogen and carbon
recycling•••

Established the “Environmental Business Promotion Dept.,” a division dedicated to the creation of environmental technology-related
businesses in January 2021
Participating in “Niigata Carbon Neutral base and Hydrogen Utilization Promotion Council” and the “Niigata Port Carbon Neutral Port
Study Group” in January 2021
Started a feasibility study of the carbon recycling project with the sector-coupling in Tomakomai with the Deloitte Tohmatsu
Consulting LLC, as a commissioned project of NEDO's Feasibility Study on Carbon Recycling Business Utilizing Inter-industrial
Collaboration in Complexes, and others in March 2021

New Business Seeds
 Creating new LNG midstream and downstream businesses in Japan and overseas••

Considering the new applications of LNG: LNG bunkering, and others
Aiming to participate in LNG related businesses, including LNG receiving terminal, satellite station, and container filling equipment inoverseas

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

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7. Glossary■Abbreviations
BOE(D)

Barrels of Oil Equivalent (per Day)

CCS

Carbon dioxide Capture and Storage

CCUS

Carbon dioxide Capture, Utilization and Storage

CIF

Cost, Insurance and Freight

FID

Final Investment Decision

GHG

Greenhouse Gas

HSE

Health, Safety and Environment

JCC

Japan Crude Cocktail

MH

Methane Hydrate

RRR

Reserve Replacement Ratio

SAF

Sustainable Aviation Fuel

WTIWest Texas Intermediate■Main Subsidiaries and Affiliates
JACOS

Japex Canada Oil Sands Limited

Canada / Oil Sands Project

JML

JAPEX Montney Ltd.

Canada / Shale Gas Project

Japex Garraf

Japex Garraf Ltd.

Iraq / Garraf Project

EMPI

Energi Mega Pratama Inc.

Indonesia / Kangean Project

SODECO

Sakhalin Oil & Gas Development Co., Ltd.

Russia / Sakhalin-1 Project

DGN

Diamond Gas Nethelands B.V.

Malaysia LNG Project 3（Tiga）

FGP

Fukushima Gas Power Co., Ltd.

Natural gas-fired electric power generation Business

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

41

Cautionary Statement
This document contains future outlooks such as plans, forecasts, strategies, and others
which are not historical fact and these are made by the management’s judgement basedon the obtainable information at the time of the disclosure. Actual results may significantly
differ from those future outlooks due to various factors.
This document is not intended to invite investment.
Copyright : All information contained herein is protected by copyright, and may not be
copied or reproduced without prior consent of JAPEX.
Note: Abbreviations used herein are as follows:(a) = Actual results(f) = Forecasts
FY = Fiscal Year (FY3/22, for instance, means 12 months ending March 31, 2022)
Any inquiries about the information contained herein or other Investor Relations questions
are requested to be directed to:
Corporate Communication Office
Japan Petroleum Exploration Co., Ltd. (JAPEX)Tokyo, JAPANTEL: +81-3-6268-7111
Copyright © 2021 Japan Petroleum Exploration Co., Ltd. All rights reserved.

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