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

June 24, 2013
Company Name: Japan Petroleum Exploration Co., Ltd. (JAPEX)
President:

Osamu Watanabe

Inquiries:

Media and Investor Relations Department

TEL.:+81-3-6268-7110
JAPEX Announces Signing of Memorandum of Understanding
for Vladivostok LNG ProjectJapan Far East Gas Co., Ltd. (hereinafter “JFG”), a company established by Japan
Petroleum Exploration Co., Ltd. (headquartered in Chiyoda-ku, Tokyo; Osamu
Watanabe, President & CEO; hereinafter “JAPEX”), ITOCHU Corporation (hereinafter“ITOCHU”), Marubeni Corporation (hereinafter “Marubeni”), INPEX Corporation(hereinafter “INPEX”) and ITOCHU Oil Exploration Co., Ltd. (hereinafter “CIECO”)
has signed a Memorandum of Understanding (“MOU”) regarding the natural gas
liquefaction project in the Vladivostok area with Russia’s state-own gas company
Gazprom (hereinafter “Gazprom”). The MOU was signed on June 22, 2013 in St.
Petersburg, Russia.
JFG and Gazprom conducted the joint feasibility study (FS) for the natural gas
utilization project in the Vladivostok area during year 2011 and 2012. Following theresult of the above-mentioned study, this MOU was signed between JFG and Gazprom
regarding discussions on foundation of a joint project company as well as joint
marketing activity in Japan, which would contribute to the realization of Vladivostok
LNG project.
Realization of this project is considered to be very important for the stable LNG supply
to not only Japan but also to the other Asian countries, and will contribute to thediversification of Russia’s gas (LNG) export sources.
[Outline of Japan Far East Gas Co., Ltd.]
Company name:

Japan Far East Gas Co., Ltd.

Representative:

Masanori Toyoshima, President and CEOHead office:5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo, Japan

Shareholder composition:

JAPEX (32.5%), ITOCHU (32.5%), Marubeni (20%),INPEX (10%), CIECO (5%)

Date of establishment:

December 6, 2010

Capital:

335 million yen

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[Reference]
Gazprom is Russian state-own gas company and the largest gas producer in the world.
Its annual natural gas production in 2012 was 487.0 billion cubic meters, and its 2012
exports were 203.2 billion cubic meters.
On May 12, 2009, when Prime Minister of the Russian Federation Vladimir Putin
visited Japan, Gazprom, the Agency for Natural Resources and Energy of Japan’s
Ministry of Economy, Trade and Industry (hereinafter the “Agency”), JAPEX andITOCHU signed a MOU regarding a preliminary feasibility study (Pre-FS) for LNG andCNG projects in the Vladivostok area. The results of the Pre-FS were reported at theFifth Joint Coordination Committee Meeting between the Agency and Gazprom in St.
Petersburg in July 2010. In 2011, JFG and Gazprom implemented joint FS for naturalgas utilization in the Vladivostok area, as well as transportation and sale of natural gasand gas-chemical products from the Vladivostok are to potential buyers in countries ofAsia-pacific region. On June 24, 2012, Ministry of Economy, Trade and Industry ofJapan and Energy Ministry of the Russian Federation signed on Memorandum
regarding cooperation in Vladivostok LNG Project. On September 8, 2012, the Agency
and Gazprom signed a MOU recognizing further cooperation in promotion of theVladivostok LNG Project. On February 21, 2013, Gazprom took the investment decision
on Vladivostok LNG Project.
The MOU signed between JFG and Gazprom is based on the above-mentioned chain ofevents.

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