JOGMEC-TRC's Technical Business Strategy
for a Low-Carbon Society
July 1, 2020
JOGMEC
1. Introduction
In the dramatically changing environment surrounding oil and natural gas development,
there are high expectations for JOGMEC to be even more proactive in the area of technicalbusiness support. These same expectations extend to the Technology & Research Center(TRC), which handles the technical and technological support function for JOGMEC.
Above all, oil and natural gas development must consider climate change issues, as isclearly stated in the nationally enacted “New International Resource Strategy” (announced bythe Ministry of Economy, Trade and Industry on March 30, 2020).
Based on these issues, JOGMEC-TRC recently reviewed the directionality of futuretechnical and technological development, and established a new technical business strategy.
This strategy will be formulated over a period of three to five years, and will be reviewed
annually in response to changes in international trends, the needs of oil and gas companies,
revision of Japan’s energy policies, and other environment issues.
2. Technical Business Strategy
As part of our mission to provide a stable supply of hydrocarbon resources for Japan,
JOGMEC-TRC has endeavored to play the role of:• an analytical center that meets the technical needs of oil and gas development
companies; and• an R&D base for technology development in a wide range of technical fields suchas exploration, development, and production.
Meanwhile, with the greater prominence of global warming and various social issues arisingfrom the development and consumption of hydrocarbon resources, it is increasingly
necessary for JOGMEC-TRC to reduce the environmental impact on the next generation
while fulfilling its mission.
Through the following steps, JOGMEC-TRC aims to become a hub for technology,information, and human resources pertaining to oil and gas development in a low-carbon
society:① Contribute to a low-carbon society: Strengthen technology development efforts forenvironmentally friendly oil and gas development. Specific themes include carbon dioxide
capture and storage (CCS) and CCUS, as well as the creation of new resources such ashydrogen and ammonia from hydrocarbons;② Pursue new possibilities in oil and gas field development: Promote the utilization ofdigital technology and the practical application of unconventional resource development
technology ;③ Strengthen foundational technologies for technical evaluation of exploration anddevelopment projects: Strengthen JOGMEC’s project evaluation expertise, from bothscientific/engineering and business perspectives. Enhance JOGMEC’s ability to provide
technical support to oil and gas companies in Japan.
① Contribute to a low-carbon society
Utilizing the knowledge and technical capabilities that come from our long experiencein oil and gas development, we will promote the following efforts to establish new businessmodels.
Supporting the integration of CCS with resource development projects JOGMEC-TRC
will utilize CCS technologies such as CO 2 -EOR, which the organization has long
1/4

been working on, to support oil and gas development with low environmental
impact. To this end, we have established a new “CCS Group” under the Oil &Gas Upstream Technology Unit to facilitate and support projects which integrate
CCS with resource development, as well as to promote related technology
development. The CCS Group will support projects such as the development of
CO 2 -rich oil and gas fields integrated with CCS, and promote cooperation withworldwide research institutions, including joint technology development andverification.
(Ideal Direction)
In addition to strengthening technological knowledge andtechnical evaluation capabilities for the support of projects which integrate CCS andresource development, we will develop and demonstrate competitive and cost effective
CCS technologies, including geological and reservoir analysis, and apply them tospecific fields. We aim to be recognized as one of the leading organizations in thefacilitation of CCS for resource development.

R&D of low environmental impact technologies In order to develop oil and gas fields
with low environmental impact, we will promote on-site demonstrations ofexisting JOGMEC-TRC technologies, such as CO 2 separation membranes, andpromote R&D of new environmental impact reduction technologies incooperation with related companies (manufacturers, engineering companies,etc.).
(Ideal Direction)
By introducing and developing cutting-edge technologies inprocesses such as CO 2 separation, capture, and storage, we will realize our granddesign for the integrated development of oil and gas fields with low environmental impact.
This system will be established by public and private sectors working together as one.

Building future value chains by creating new resources from hydrocarbons
We willpromote the implementation of feasibility studies and technical studies toestablish a business model for the development of low-carbon energy sources
such as hydrogen and ammonia.
(Ideal Direction)
We aim to become the core organization of a low-carbon value
chain that adds new value to conventional oil and gas development, while applying CCS
technology to offset CO 2 associated with the production of ammonia and other such
substances produced from hydrocarbons.

② Pursue new possibilities in oil and gas field development
Taking into account low oil prices, the importance of low carbon emissions, and otherchanges in the external environment, we will make the following efforts to provide
technical support, improve productivity, and increase reserves in oil and gas fielddevelopment.
Pursue opportunities in digital technology and create new business areas We will
support the improvement of operational efficiency and productivity at oil and gas fielddevelopment sites by promoting digital technology PoC (Proof of Concepts), internaland external human resource development, and the utilization of data. PoC’s will beperformed in cooperation with AI/IoT companies. We will establish a function as adigital knowledge center with integrating knowledge, capability, and humanresources. We will propose the ideal form of oil and gas field development based on
new ideas and viewpoints in accordance with the directionality of the digitaltransformation that is referred to as the JOGMEC Digital E&P Platform 1.
(Ideal Direction)
JOGMEC-TRC will become an information hub linking oil and gas
development companies in Japan with other organizations worldwide. Our aim is tostrengthen international competitiveness by promoting the implementation oftechnologies in each company’s business area.

Tight oil and gas development The results of our research in the area of shale gas and1JOGMEC News Release related to Digital E&P Platform (March 15, 2019)http://www.jogmec.go.jp/news/release/news_03_000018.html [Japanese]

2/4oil development are widely adopted in the fields in which Japanese E&P
companies operate and participate. Specifically, we carry out R&D on subjects
such as IOR/EOR, well completion, and hydraulic fracturing design. In order toachieve asset value improvement for Japanese E&P companies, our R&D
results reduce the uncertainty associated with shale development, reduce
drilling costs, and improve well productivity.
(Ideal Direction)
JOGMEC-TRC supports efforts by Japanese oil and gas
companies to gain high expertise as major players in tight oil and gas development andtheir business development thereof.

Commercialization of methane hydrate We will promote Japan’s methane hydrate
development plan, which has graduated to a new phase of R&D in which we areconducting long-term onshore production tests in Alaska (in joint research withthe US) and identifying promising areas of resource concentration in the seasaround Japan. We will also contribute to the realization of the commercial useof methane hydrates produced from beneath the seas around Japan.
(Ideal Direction)
As a global leader in the field of methane hydrate, Japan willcontinue to promote R&D, with the aim of establishing a technological foundation tosupport the commercialization of methane hydrate, which is expected to serve as adomestic resource.

③ Strengthen the foundational technologies for technical evaluation of explorationand development projects
As an organization that integrates human resources and knowledge in specialized
fields throughout oil & gas exploration and development, and as a national organizationthat provides technological support and technical evaluation on oil & gas projects,
JOGMEC-TRC will make the following efforts in order to fulfill these roles more than everbefore.
R&D and applied technological support thereof Through R&D focused on solving thechallenges faced by Japanese oil and gas development companies, we willaccumulate and utilize new knowledge. To this end, we will strengthen efforts tounderstand the needs of oil and gas development companies and to further
utilize the knowledge of intellectuals outside the organization for futureapplication.
Challenge beyond oil & gas We will expand the scope of our R&D beyond oil andgas field development, and engage in new research issues arising fromgeothermal, metal, and other adjacent fields.

3. Flagship R&D projects and other important actions
The core R&D projects that JOGMEC-TRC should promote independently and proactively
in the future will be positioned as ‘flagship projects’ and strongly promoted. Examples ofstrong candidates for flagship projects would be those which integrate CCS and resource
development, and those related to tight oil and gas development. In the future, theseprojects will be reviewed in accordance with changes in the surrounding environment andthe needs of oil and gas development companies. In order to provide value-added solutions
for Japanese oil and gas development companies JOGMEC-TRC aims to accumulateknowledge and experience in technical areas that will be important for the realization of alow-carbon society in the future.
These efforts will be carried out through cooperation and collaboration between JOGMECTRC and outside organizations. In order to further enhance these functions, TRC will
enhance its transparency as a public organization by promoting information disclosure
online and through the use of various media such as TRC Week and annual reports. We
will also utilize our management resources to actively promote the implementation ofhuman resource development programs for the improvement of technical capabilities,
3/4

pursue the expansion of joint research using our research facilities, and proactively
introduce new workflows to enhance the efficiency and potential of the business. We will
also break free of stereotypes, and will create a better environment that allows researchersand engineers to dedicate themselves to their work.
We will keep working to make social contributions in the field of energy resources, in which
the results of JOGMEC-TRC’s activities and businesses will be communicated in an easily
comprehensible way, the people of Japan and other worldwide oil and gas development
stakeholders will clearly understand the status of our activities, and see that JOGMEC-TRC
is a research organization that attracts excellent researchers and engineers.
-END-4/4