February 25, 2004
Concerning the Approval of Development Plans for the Kashagan Oil Field in theKazakh Offshore of the North Caspian Sea in the Republic of Kazakhstan
INPEX CORPORATION (INPEX), through its subsidiary INPEX North Caspian Sea,
Ltd., is participating in a seven-company consortium of Japanese, European and U.S.
companies that are exploring and appraising sites in the Kashagan oil field in theKazakh offshore of the North Caspian Sea in the Republic of Kazakhstan. Today,
February 25, 2004, approval to pursue the development of this oil field was given by thegovernment of Kazakhstan in the capital city of Astana.
With this approval, the international consortium will pursue the phased development of
the Kashagan oil field. In 2008, daily production of 75,000 barrels per day will beinitiated, to be increased to 450,000 barrels per day by 2010. Subsequently, thedevelopment area will be widened, with a phased increase to a daily production level of
1,200,000 barrels. Meanwhile, gas that is produced concomitantly with the oil will beinjected into the reservoir in order to maximize oil recovery and reduce sulfur
production.
The Kashagan oil field is the largest oil field that has been discovered in the last 30years. By maximizing oil production through gas injection, it is estimated that a total
production amount of 13 billion barrels can be achieved. The total cost of fielddevelopment is expected to be US$29 billion.
Using the most advanced technology and expertise in the world today, the international
consortium will work in harsh natural conditions while paying close attention toprotecting the surrounding environment. It is also expected that this development
project will increase Kazakhstan’s revenues from crude oil exports and create jobs, thus
contributing greatly to the national economy.
The partners of the North Caspian Sea PSA are: Eni (operator, 16.67%, Italy); British
Gas (16.67%, Great Britain); ExxonMobil (16.67%, U.S.); Shell (16.67%, British/Dutch);
Total (16.67%, France); ConocoPhillips (8.33%, U.S.) and INPEX (8.33%, Japan).

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* Supplemental Information
1. The North Caspian Sea contract area is comprised of two blocks: the eastern block(approximately 4,300 km2) and the western block (approximately 1,275 km2) with acombined area of approximately 5,575 km2. The approval issued by the Republic ofKazakhstan applies to the Kashagan oil field, which is located in the eastern block, 70
km southeast of Atyrau, Kazakhstan at a depth of 3-5 m.
2. After the Kashagan oil field was discovered with the first exploratory well drilled inJune 2000, further exploratory and appraisal wells were drilled, leading to anannouncement of commercial viability in June 2002. The development plan wasformulated on the basis of exploratory work implemented up until the present time.
3. It has been confirmed that the Kalamkas structure, Kashagan Southwest structure,
and Aktote structure located in the region are impregnated with hydrocarbons.
Exploratory work is currently being pursued on a fourth structure, the Kairanstructure.
4. In September 1998, INPEX, through its subsidiary INPEX North Caspian Sea, Ltd.,acquired a one-fourteenth interest in the oil field from the Kazakhstan Caspian Shelf
Co. and became a member of the European-American consortium. Subsequently, it
further increased its interest through agreements signed with BP and Statoil in
September 2001.
5. INPEX North Caspian Sea, Ltd. was founded in August 1998. It was capitalized bythe Japan National Oil Corporation, Japan Petroleum Exploration Co., Ltd., andMitsubishi Corporation. (As of the end of January 2004, total capitalization was ¥41.66
billion, divided as follows: Japan National Oil Corporation, 50%; INPEX, 45%; JapanPetroleum Exploration Co. and Mitsubishi Corporation, 2.5% each.)2