Note: The following is an English translation of the Japanese-language original[Press Release]

September 21, 2023
Japan Petroleum Exploration Co., Ltd.
+81-3-6268-7110 (Media Relations)

https://www.japex.co.jp/en/contact/

JAPEX Signed MOU with SKK Migas on Joint Collaboration toward
Realization of CCS/CCUS Hub & Clusters in Indonesia
Japan Petroleum Exploration Co., Ltd. (JAPEX) signed a memorandum of understanding (MOU) with SKK
Migas (Special Task Force for Upstream Oil and Gas Business Activities, established by the Government of theRepublic of Indonesia) on September 21, 2023, regarding joint collaboration toward development andimplementation of CCS (Carbon dioxide Capture and Storage)/CCUS (Carbon dioxide Capture, Utilization, andStorage) hub and clusters in the Republic of Indonesia (hereinafter “Indonesia”).
The Government of Indonesia has formulated and unveiled its targets to reduce greenhouse gas (GHG) emissions
by 43.2%*1 by 2030 and to achieve net-zero CO2 emissions by 2060, in light of the accelerating requirement for energy
transition associated with the global trend towards decarbonization. To achieve these targets, SKK Migas, thegovernmental organization that supervises upstream oil and gas operations in Indonesia, is expected to play aleading role in GHG reduction as well as in expanding oil and gas production for sustainable economic growth.
With the aim of contributing to the realization of a carbon-neutral society by 2050, JAPEX has been proceedingwith studies for early commercialization of CCS/CCUS by leveraging our expertise in survey, drilling, monitoring,and others, which we have accumulated in oil and gas E&P*2 in Japan and overseas. Particularly in Indonesia, wehave over 30 years of experience in oil and gas E&P projects. In addition, as the decarbonization-related initiatives,
we have been working on the studies on the realization of CCUS since 2017 and have started a feasibility study of
the CCUS project in 2021, utilizing the Joint Crediting Mechanism (JCM), at the Sukowati oil field in East Java
Province of Indonesia, with Pertamina group and LEMIGAS, the Research and Development Center of Oil and Gas
Technology of Indonesia.
In light of these backgrounds and the perspective of further cooperation between the two countries based on the“Memorandum of Cooperation between The Ministry of Economy, Trade and Industry of Japan and The Ministryof Energy and Mineral Resources of Republic of Indonesia on the Realization of Energy Transitions”, which wassigned on January 10, 2022, we confirmed the consistency of each other’s future direction and reached the consensus
in the MOU this time.
Based on the MOU, with a view to launching future CCUS projects by utilizing CO2-EOR (Enhanced OilRecovery) method and establishing the CCS/CCUS hubs and clusters*3 in Indonesia that can accept CO2 from othercountries including Japan, SKK Migas and JAPEX will share their respective information and support each otherin technical and business aspects. Furthermore, JAPEX will discuss and coordinate with related parties on required
institutional designs and formulation of outreach activity*4 plans, in cooperation with SKK Migas.
Through solving social problems and realizing businesses towards carbon-neutrality in Japan and abroad, JAPEX
will continue to aim for growth and further enhancement of corporate value as a "Comprehensive Energy Company",
which supplies a variety of energy sources that meet the needs of the era.
1 / 2Notes)*1: Comparison with the case where no additional measures are taken and the current status is maintained (BAU: Business AsUsual). The reduction target of 43.2% is based on the condition of using international support. The reduction target without
international support is 31.89%.
*2: Abbreviation of Exploration and Production.
*3: A kind of network in which multiple CO2 emitting sites and storage sites are connected with pipelines.
*4: Activities to obtain social acceptance from the local communities, such as providing information on safety and CSR activities,
including education and provision of medical care.

(Reference Photo)

MOU Signing Ceremony(Reference: Signers related in the above photo)
Right: Dr. Tomomi Yamada, Executive Management Officer, President of Overseas Business Division II, JAPEX
Third from right: Dwi Soetjipto, Chairman, SKK Migas###2 / 2