Financial results for the six months ended September 30, 2008
Appendix1

EBIDAX
Apr.‐Sep. ’07

Apr.‐Sep. ’08

ChangeNet income

81,045104,028

22,983

P/L

Minority interests

8,678

4,336

(4,342)

P/L

Depreciation equivalent amount

71,59648,295(23,301)

17,73819,675

1,937

Amortization of goodwill

3,236

3,380

144

Recovery of recoverable accounts(capital expenditure)

50,622

25,240(25,382)

Exploration cost equivalent amount

16,53032,435

15,905

Exploration expenses

8,316

15,722

7,406

P/L Exploration expense under concession agreements

Provision for allowance for recoverable
accounts under production sharing

7,527

14,192

6,665

P/L Exploration expense under PS contracts

687

2,521

1,834

P/L Exploration expense under PS contracts

Material non‐cash items(8,692)(6,376)

2,316

Deferred income taxes(7,038)(7,360)

(322)

P/L

Foreign exchange (gain) loss

(1,654)

(984)

2,638

C/F

7

(42)

(49)

P/L After‐tax interest expense minus interest income

169,164

182,676

13,512(Millions of yen)

Depreciation and amortization

Provision for exploration projects

Net interest expenses (income), after tax

EBIDAX

2

Notes

C/F Depreciation under concession agreements and G&A
C/FC/F Depreciation under PS contracts

Analysis of Recoverable Accounts under Production Sharing(Millions of yen)

Apr.‐Sep. ’08(INPEX)(Teikoku Oil)

383,162

378,738

4,424

Exploration costs

20,085

18,8491,236

Development costs

90,52789,622

904

Operating expenses

31,95630,563

1,393

―

―

―

Cost recovery (CAPEX)

25,24025,054186

Cost recovery (non‐CAPEX)

53,254

51,615

1,639

Other

551

551

―

Balance at end of period

446,686

440,552

6,133

Allowance for recoverable accounts under
production sharing at end of period

88,102

83,592

4,509

Balance at beginning of period
Add:

Other
Less:

3

Geographical segment information

For the six months ended September 31, 2008 (April 1, 2008 through September 30, 2008)
Japan

Asia/Oceania

Eurasia(Europe ‐ NIS)

MiddleEast/Africa

Americas

Total(Millions of yen)
Eliminations
and other

Net Sales

46,496

286,738

54,395

349,799

4,163

741,594‐

741,594

Operatingincome(loss)

16,108205,331

32,700254,093(1,102)

507,131(3,410)503,721

Notes: 1. Countries and areas are segmented based on their geographic proximity and their mutual operational relationships.
2. Major countries and areas that belong to segments other than Japan are as follows:(1) Asia ‐ Oceania･･････････Indonesia, Australia, East Timor, Vietnam(2) Eurasia (Europe ‐ NIS)･･･Azerbaijan, Kazakhstan, UK(3) Middle East ‐ Africa･････UAE, D.R. Congo, Iran, Libya, Egypt, Algeria, Angola(4) Americas･･････････････Venezuela, Ecuador, USA, Canada, Suriname, Brazil

4

Consolidated

Estimate of Exploration Expenses/Provision for Allowance for
Recoverable Accounts under Production Sharing(Billions of yen)

57.7

60

50.7

52.5

22.2

24.3

28.4

28.2

50
23.6
40
30
20

26.8
9.1
34.0

10

Provision for allowance forrecoverable accounts under
production shareing for Masela
Block in Indonesia will increase.
Meanwhile, exploration expenses in
INPEX Alpha, Ltd. and others willslightly decrease.

17.6

0Mar. 07

Mar. 08

Mar. 09 E（ in May 2008) Mar. 09 E（ in Nov . 2008）

Provision for allow ance for recoverable accounts under production sharing* (PS contract)
Exploration expenses (concession agreement)

5*Including Provision for exploration projects

Sales and Investment plan for the year ending March 31, 2009
【Reference】

Forecasts for the year ending
March 31, 2009

Apr.‐Sep. ’08(Actual)ChangeAs of Nov. 11, 2008

Crude oil (Mbbl)1

78,08976,034(2,055)38,301Natural gas (MMcf)2

408,146

405,758(2,388)

197,349

344,253

343,359(894)

169,048

63,89262,399(1,493)28,301(1,712 million m3)(1,672 million m3)(‐40 million m3)(758 million m3)

2,052

2,111

59

1,083

Development expenditure

297.4

264.0

(33.4)

124.2

Exploration expenditure4

55.7

59.9

4.2

35.7

Exploration expenses andProvision for explorations5

50.7

52.5

1.8

32.4

7.1

7.8

0.7

6.2

Sales Volume

As of May 14, 2008

OverseasJapan

LPG （Mbbl）3(Billions of yen)

(Minority Interest Portion)66Note 1 CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl
2 CF for domestic natural gas sales : 1m3=37.32cf
3 CF for domestic LPG sales : 1t=10.5bbl
4 Including acquisition costs
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects” in statements of income
6 JOGMEC portion in INPEX Masela, INPEX UK, and TEIKOKU OIL (SURINAME)

Production by region (Apr.‐Sep. ‘08)
Oil/Condensate/LPG
0%

2%

1 5

Total

223Mbbl/day

18%

401MBOE/day

40
Japan

3%

23

155

10%

Asia/Oceania

14

Eurasia8%31

Middle East/Africa

70%

Americas39%

155

Natural Gas
14%

7%

77

155

179
1,068MMcf/day

44%（178MBOE/day）

23

Japan

6%

Asia/Oceania

836

AmericasJapan

Asia/Oceania

Eurasia

Middle East/Africa

Americas79%7

INPEX CORPORATION*
Highlights of the Consolidated Financial Results* Before absorption merger on October 1, 2008

(Billions of yen)

Apr.‐Sep. ’07

Apr.‐Sep. ’08

Change%Change

Net sales

498.4

676.6

178.1

35.7%

Operating income

307.9

479.6

171.7

55.8%

Ordinary income

306.4

460.5

154.1

50.3%

Net income

74.2

95.9

21.6

29.1%

Net Sales

Ordinary Income(Billions of yen)

676.6

700
600

498.4

215.6

Net Income(Billions of yen)(Billions of yen)

500

100

400

500
400

152.1

300

300
200

460.9
346.2

0
Crude Oil

8

200

50

95.9
74.2

306.4
100

100
Apr.-Sep. '07

460.5

Apr.-Sep. '08

Natural Gas

00
Apr.-Sep. '07

Apr.-Sep. '08

Apr.-Sep. '07

Apr.-Sep. '08

INPEX CORPORATION*
Crude Oil Sales* Before absorption merger on October 1, 2008

Apr.‐Sep. ‘07

Apr.‐Sep. ‘08

Change%Change

Crude oil sales**(Billions of yen)

346.2

460.9

114.6

33.1%

Crude oil sales volume(Mbbl)

41,41036,719(4,691)(11.3%)

Average sales price($/bbl)69.78

117.41

47.63

68.3%

Average exchange rate(¥/$)

119.45105.87

13.58

11.4%

yen appreciation

yen appreciation**Includes domestic supply obligations with Indonesia

Sales volume decrease 11.3% from the corresponding period of previous fiscal year mainly due to sales
volume decrease from ACG Oil Fields (INPEX Southwest Caspian Sea)

9

INPEX CORPORATION*
Natural Gas Sales* Before absorption merger on October 1, 2008

Apr.‐Sep. ’07

Natural gas sales**(Billions of yen)

Apr.‐Sep. ‘08

Change%Change

152.1

215.6

63.4

41.7%

159,073

154,546(4,527)(2.8%)

7.80

12.62

4.82

61.8%

119.30106.27

13.03

10.9%

yen appreciation

yen appreciation**Including LPG

Natural gas sales
volume (MMcf)
Average sales price($/Mcf)Average exchange rate(¥/$)

Natural gas sales volume decreased by 2.8% from the corresponding period of the previous fiscal year
mainly due to a decrease of shipping cargos from the Bontang LNG Plants

10

INPEX CORPORATION*
Analysis of Net Profit Increase* Before absorption merger on October 1, 2008

(Billions of Yen)
400
305.0

300
3.4
(85.6)(16.0)

200(0.8)(10.6)

3.4

100(135.9)95.9

74.2(41.2)

0Apr.‐Sep. ‘07

Decrease in Increase in Appreciation
Sales Volume Unit Priceof YenNet Sales

Exploration
Other Income
Expenses
SG & A and Expenses
and Allowance
for Exploration**

Cost of
Sales

IncomeTaxes

Minority
Interest
Apr.‐Sep. ‘08
and Others**Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects (+ 0.4 billion yen)

11

INPEX CORPORATION*
Statements of Income* Before absorption merger on October 1, 2008

(Billions of yen)

12

Apr.‐Sep. ‘07

Apr.‐Sep. ‘08

Change%Change

Net sales

498.4

676.6

178.1

35.7%

Cost of sales

171.2

167.7

(3.4)

(2.0%)

Exploration expenses

3.8

12.9

9.0

233%

Selling, general andadministrative expenses

15.3

16.2

0.8

5.7%

Operating income

307.9

479.6

171.7

55.8%

Other income

16.1

7.8

(8.3)

(51.7%)

Other expenses

17.6

26.9

9.2

52.3%

Ordinary income

306.4

460.5

154.1

50.3%

Income taxes

224.7

360.9

135.9

60.5%

Minority interests

7.4

3.9

(3.4)

(46.4%)Net income

74.2

95.9

21.6

29.1%

Cost of sales for
Crude oil : 132.9
Change : +3.7
Cost of sales for
Natural Gas : 34.7
Change :(7.2)

INPEX Browse, INPEX Timor
Sea etc.

Mainly income taxes in foreigncountries

INPEX CORPORATION*
Other Income/Expenses* Before absorption merger on October 1, 2008

(Billions of yen)

Apr.‐Sep. ‘07

Apr.‐Sep. ‘08

Change%Change

16.1

7.8

(8.3)

(51.7%)

Interest income

5.4

3.0

(2.4)

(44.2%)

Equity in earnings of affiliates

0.4

1.0

0.5

114.2%Net gain on re‐determinationof unitized field

3.8

‐

(3.8)

(100%)

Foreign exchange gain

4.7

‐

(4.7)

(100%)

Other

1.5

3.6

2.1

137.9%

17.6

26.9

9.2

52.3%

Interest expense

5.4

3.0

(2.3)

(43.5%)

Provision for allowance forrecoverable accounts under
production sharing

6.6

13.2

6.5

97.3%

Foreign exchange loss

‐

5.0

5.0

‐

5.5

5.6

0.0

1.4%

Other income

Other expenses

Other

13

Net gain in the corresponding
period of previous year by re‐determination of reserves atBayu‐Undan gas/condensate
field.

Increase in exploration
investments for Abadi and
INPEX Libya

Difference of exchange rate is
3.43 yen depreciation between
the beginning and end of theperiod. Meanwhile, thedifference of the corresponding
period of previous year was 2.66
yen appreciation.

Teikoku Oil
Highlights of the Consolidated Financial Results(Billions of yen)

Apr.‐Sep. ‘07

Apr.‐Sep. ‘08

Change%Change

Net sales

75.4

86.7

11.2

14.9%

Operating income

21.2

27.4

6.1

29.1%

Ordinary income

25.6

25.0

(0.5)

(2.1%)Net income

14.7

13.3

(1.3)

(9.3%)Net Sales(Billions of Yen)
100
80

86.7

Net Income(Billions of Yen)

(Billions of Yen)

30

15.0

20

10.0

75.4
28.0

60

Ordinary Income

26.3

25.6

33.3

40

10

31.5

14.7

25.0

13.3

5.0

20

17.5

25.3

0

0
Apr.-Sep. '07
Crude Oil

14

Natural Gas（Inc. LPG）

Apr.-Sep. '08
Petroleum Products

Apr.-Sep. '07

Apr.-Sep. '08

0.0

Apr.-Sep. '07

Apr.-Sep. '08

Teikoku Oil
Crude Oil Sales(Billions of yen)

ChangeApr.‐Sep. ‘08%Change

Net sales

17.5

25.3

7.8

44.5%

Overseas Crude Oil Sales
volume (Mbbl)

2,123

2,140

17

0.8%

1,411

1,421

10

0.7%

24

26

2

7.0%

Overseas average unit
price($/bbl)

63.74

102.97

39.23

61.5%

Domestic average unit price(¥/kl)

55,004

81,78926,785

48.7%

Average exchange rate (¥/$)

120.05105.63

14.42

12.0%

yen appreciation

yen appreciation

Sales volume after adjustment of theoil trading and storage business(Mbbl)

Domestic Crude Oil Sales
volume (thousand kl)

15

Apr.‐Sep. ‘07

Teikoku Oil
Natural Gas Sales

Apr.‐Sep. ‘07
Natural gas sales*(Billions of yen)

Apr.‐Sep. ‘08

Change%Change

31.5

33.3

1.8

5.7%

Overseas Natural gas sales
volume (MMcf)

14,78814,502(286)(1.9%)

Domestic Natural gas sales
volume (MMNm3)

756

758

2

0.3%

Overseas average sales price($/Mcf)

2.13

2.30

0.17

8.0%

Domestic average sales price(¥/Nm3)

34.92

37.25

2.33

6.7%

Average exchange rate (¥/$)

120.15104.90

15.25

12.7%

yen appreciation

yen appreciation*Includes LPG

16

Teikoku Oil
Analysis of Net Profit Increase(Billions of yen)

30

13.0
1.7

25
0.1

(3.6)
(4.3)

20

(2.4)
0.3

15

0.6
(5.1)
(1.7)

10
14.7

13.3

5
0
Apr.‐Sep. ‘07

Increase in Increase in Appreciation
Sales Volume Unit Priceof YenNet Sales*

17

Other

Exploration
Expenses
SG & Aand Allowance
for Exploration**

Cost of
Sales

Other Income Income
and Expenses Taxes

Minority
Interest
and Others*Including the amount of the oil trading and storage business. Adjusting the amount in the consolidated net sales**Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects (+ 1.3 billion yen)

Apr.‐Sep. ‘08

Teikoku Oil
Statements of Income(Billions of yen)

Apr.‐Sep. ‘07 Apr.‐Sep. ‘08

Change%Change

Net sales

75.4

86.7

11.2

14.9%

Cost of sales

38.1

42.4

4.3

11.3%

Exploration expenses

4.4

2.7

(1.6)

(37.4%)

Selling, general andadministrative expenses

11.6

14.0

2.4

21.0%

Operating income

21.2

27.4

6.1

29.1%

Other income

6.4

3.1

(3.2)

(51.0%)

Other expenses

2.0

5.5

3.4

164.4%

Ordinary income

25.6

25.0

(0.5)

(2.1%)

Income taxes

9.5

11.2

1.7

18.2%

Minority interests

1.2

0.3

(0.9)

(71.3%)Net income

14.7

13.3

(1.3)

(9.3%)

18

Cost of sales for
Crude oil :12.7
Change :+3.4
Cost of sales for
Natural Gas : 8.1
Change+0.5

Net gain by the effect of joint
venture agreement at Venezuela
project in the corresponding
period of previous year.

Increase of provision for theabandonment costs for theoffshore Iwaki production
facilities.

Project Summary

19

Existing Interests in Major Assets
Joslyn Oil Sands Project(Cut off mining area in
Preparation for Development)

North Caspian Sea Block(Kashagan Oil Field, etc.)
Minami‐
Nagaoka
Gas Field

ACG Oil Fields
Azadegan Oil Field

Sakhalin 1
South NatunaSea Block B

ADMA Block(Umm Shaif/Lower/Upper Zakum Oil
Fields, etc.)

El Ouar I/II

West Bakr Block
Ohanet Block

20

Cuervito/
Fronterizo
BlocksCopa Macoya/
Guarico Oriental
Blocks

Masela Block(Abadi)

ABK Block

Block 18

North West Java BlockSouth East Sumatra Block

WA‐155‐P(P1)(Van Gogh Field,
Ravensworth Field)

In Production

Offshore Mahakam Block/
Attaka Unit
Berau Block(Tangguh Unit)

WA‐10‐L Block(Griffin)

Offshore D.R. Congo Block

Ship Shoal 72
Main Pass 117/118
West Cameron 401/402
LSL 19320/19372/19421/19574

JPDA03‐12 Block(Bayu‐Undan)
WA‐285‐P Block(Ichthys)In Development

Offshore North
CamposFrade Block

Albacora

JPDA06‐105 Block(Kitan)Preparation for Development(Discovered)

Undeveloped (Discovered)

Production Start‐up Schedule
Project/Oil & Gas Field

Production Start‐up

April ‘08

Country

Tangguh LNG ProjectIndonesia

April ‘09

Frade Oil Field

Brazil‐ March ’10

Van Gogh Oil Field

Operator

Peak Production /Production Capacity

Our Share*1

BP

7.6MMt/a

7.79%

Chevron

100Mbbl/d

6.85%

Australia

Apache60Mbbl/d

47.499%North Belut Gas Field

Indonesia

ConocoPhillips

‐ *2

35%

Ravensworth Oil Field

Australia

BHPBP

‐ *2

28.5%

April ‘12

El Ouar I&II

Algeria

ENI

TBD

10.29%‐ March ’13

Kashagan Oil Field

Kazakhstan

ENI

1.5MMbbl/d

7.56%

After April ’13

Joslyn Oil Sand Project (Cut off mining)

CanadaTOTAL

200Mbbl/d

10%

Ichthys LNG Project (LNG)

Australia

INPEX

Over 8MMt/a76%‐ March ’09

April ’10
‐ March ’11(Condensate)

Approximately 100Mbbl/d(LPG)

Approximately 1.6MMt/a

Abadi LNG ProjectIndonesia

INPEX

TBD

100%

Discovered/

Kuda Tasi / Jahal / Kitan

JPDA

ENI

TBD

35%

Production start‐up(TBD)

Kalamkas, Aktote, Kairan and Southwest Kashagan
structures

Kazakhstan

ENI

TBD

7.56%

Phase 1 Full‐scale
production (TBD)

Azadegan Oil Field

Iran

NICO

Under initial stage production
*1
*2

21

Our share is a participating interest. In the case of an equity method affiliate, multiplying participating interest by our controlling share.
Nondisclosure because of confidentiality agreement with project partners

260Mbbl/d

10%

Domestic Natural Gas Business INPEX CORPORATION


Production* :Natural gas: approximately 4.4 million m3/d

Crude oil: approximately 5,000 bbl/d

Natural Gas Sales : 1.7 billion m3/y : 37% increase from previous
yearMinami‐Nagaoka Gas Field (production commenced in 1984)

Domestic gasPromotion of development in the northern part of the field
by Massive Hydraulic Fracturing (MHF) Technology

Enhanced the plant processing capacity in 2006 (Output
capacity of the whole field: approximately 5.0 million m3/d)

Extension of pipeline network to meet increased gas expansion(approximately 1,400km in total)

LNG(regasified)Domestic Pipeline Network

22

Shin Oumi Line(71km/Approximately 17.8 billion yen/completion in 2009)
Gunma Interconnection Line (Planned with Tokyo Gas)
Introduction of LNG
From Shizuoka Gas Co., Ltd. in 2010
Construction of LNG receiving terminal in Joetsu City (Start‐up
target: 2014)
Design to establish Gas Supply Chain in our group
Electric power business: approximately 55,000 kw＊ sum of domestic crude oil and gas fields ; average daily volume (FY2007)

Domestic Natural Gas Business Sales Expansion
Natural Gas Sales Volume(Millions of Cubic Meters)

Pipeline Extensions(kilometers)

1,600

Sales
to
静岡ガスへの販
ShizuokaGas
売分
Natural Gas Sales Volume

1,900

Pipeline（Km）

1,700
1,500

1,300

1,300
1,100
900

1,000

700
500
300

700
2002

2003

2004

2005

2006

2007

2008
(Forecast)note： *2002‐2005 : Calendar year 2006‐ : April to March**Conversion into 1 cubic meter per 41.8605MJ (10,000kcal)***Teikoku Oil (Non Consolidated)

 Sales Volume : 1.7 billion m3 in FY2007 : 37% increase from previous year  Introduction of LNG (From 2010)23



Fuel Switching to natural gas by industrial users

Corresponding to our growing sales

Sales to Shizuoka Gas through full year ⇒ To over 2.0 billion m3 : mid tolong term forecast

Under discussion of new sales priceformula after introduction of LNG

Domestic Gas Price Price Environment
Price comparison per a unit
140

Crude Oil CIF Japan
Low Sulfur A Heavy

LNG-CIF Japan
Teikoku's Domestic Gas (Weighted Average)120* Conversion into unit price per 41.8605MJ (10,000kcal) by Crude Oil : 38.20MJ/L, A Heavy : 39.10MJ/L,
LNG : 54.60MJ/kg from Statistics by METI
* Refinement cost, etc. are not included in crude oil, Delivery cost, etc. are not included in A Heavy, Storage,
Regasfied, Distribution costs, etc. are not included in LNG

Price[\／41.8605MJ]

100

80

60

40

20

98/4

24

99/4

00/4

01/4

02/4

03/4

04/4

05/4

06/4

07/4

08/4

09/4

Offshore Mahakam INPEX CORPORATION

Bontang LNG/LPG Plant



Production*
Crude Oil: Approximately 76,000 bbl/d

Gas: Approximately 2.6 billion cf/d

PSC: Until 2017

Attaka Field



Continue development activities to stabilize the gas
supply to Bontang LNG plant

Tunu
Field

Handil Field

Sisi Field
Nubi Field

Senipah Terminal
Bekapai Field

Makassar Strait
Balikpapan

Offshore MahakamGas field
Oil field
Oil and gas field＊ All field base and average of September 2008

25





Badak Field

Peciko Field

Participating Interest: 50.0% (Operator: TOTAL)

Attaka Unit
Santan Terminal

Nilam Field
Tambora Field







Phased development of the Tunu / Peciko fieldAdditional development of the Tambora fieldDevelopment of the Sisi‐Nubi Unit

Renewal of two LNG sales contracts to be expired in
December 2010 and March 2011 (under negotiation)South Natuna Sea Block ‘B’ INPEX Natuna, Ltd.
 Participating Interest: 35.0%(Operator : ConocoPhillips)
Natuna Sea

South Natuna Sea Block B

North Belut

Hiu

South Belut
Bawal
Belida Buntal Tembang
Keong
Sembilang
Malong Production*:

Crude Oil: Approximately 81,000 bbl/d

LPG: Approximately 9,000 bbl/d

Gas: Approximately 600 million cf/d

KerisiWest Belut PSC: Until 2028

BelanakBintang LautNatuna Island

KijingOil Field

Anambas Islands

Gas Field
Oil and Gas Field＊ All field base and average of September 2008

 Signed a gas sales contract for 22 years from2001 with SembCorp (Singapore) and for 20
years from 2002 with Petronas (Malaysia)
 Belanak commenced crude oil production in
December 2004 and LPG production in April
2007. Production started at Kerisi in December
2007.
 Production is expected to start at North Belut in
2009.

26

Berau (Tangguh LNG Project) MI Berau B.V. / MI Berau Japan Ltd.
West Papua Province(Indonesia)

MI Berau B.V./MI Berau Japan Ltd.* : Joint venture with Mitsubishi
Corporation (INPEX 44%, Mitsubishi 56%)
*MI Berau Japan owns approximately 16.5% share of KG Berau Petroleum Ltd.

Participating Interest:

MI Berau : 22.9%(Tangguh Unit: 16.3%)



KG Berau Petroleum : 12%(Tangguh Unit: 8.56%)(Operator : BP)

Berau Block
Kaimana27



PSC: Until 2035

Development plan and extension of the PS contract were approved
by Indonesian GovernmentSigned loan agreements for total US$3.5 billion to finance thedevelopment of the LNG project

LNG plant (under construction) is scheduled to commence
production in 1Q 2009


Scheduled to produce 7.6 million tons of LNG per year

Signed long‐term LNG sales contract for Fujian

Signed LNG sales contract with POSCO and K‐Power
CompanyEntered into LNG sales contract with Sempra

Masela (Abadi) INPEX Masela, Ltd.
 Participating Interest: 100.0%
 Operator: INPEX
Masela Block

Timor Sea
JPDA

Timor Sea

 PSC:


10 year exploration period (until 2008)

20 year development/ production period(until 2028)

 Discovered gas in Abadi‐1 exploration well in
2000
 Confirmed the extension of gas in the Abadi
structure by 2 appraisal wells in 2002
 Drilled 4 appraisal wells from May 2007 toevaluate reserves
 Submitted Plan of Development (POD) to
Indonesia Government (BPMIGAS) in May
2008 and discussions going with BPMIGAS

28

Bayu‐Undan INPEX Sahul, Ltd.
 Participating Interest: 11.27%*(Operator: ConocoPhillips)
East Timor
Timor Sea
Joint Petroleum
Development Area
(JPDA)

Bayu‐Undan
Gas/Condensate Field

 Production*:

Oil / Condensate: Approximately 65,000
bbl/d



Gas: Approximately 1.1 billion cf/d

LPG: Approximately 38,000 bbl/d

 PSC: Until 2022
 As phase 1 for development and production ofcondensate and LPG, sales of condensate and
LPG started in February 2004

JPDA 03‐12 block Phase 2 is LNG project in Darwin, Northern
Territory, Australia. LNG sales started in
February 2006
Australia

0

50 km

＊2 All field base and average of September 2008

29

Entered into LNG Sales Contract withTEPCO and Tokyo Gas(3 million t/a for 17 years from 2006)

WA‐285‐P (Ichthys) INPEX Browse, Ltd.

PAPUA NEWGUINEA

Participating Interest: 76.0%

Operator: INPEX

Concession Agreement:

Exploration Period until September 2009Production Period for 21 years from the grant of the production
license (with the option to extend the contract period)

Confirmed a large‐scale gas and condensate field in total six exploratory
wells from 2000 and called “Ichthys”

Commenced Australian federal and West Australian state government
approval processes for assessment of environmental impact of theIchthys project in May 2006

The Australian Government awards Major Project Facilitation(MPF)
status to Ichthys project in August 2006, as it provides a significant
boost to Australia’s employment and exportsDrilled the exploration wells (Dinichthys North‐1 since April 2007 andIchthys West‐1 since April 2008) with the aim of expansion of the gas
reserves (8 exploration wells in total)Commenced Australian federal and Northern Territory government
approval processes for assessment of environmental impact of theIchthys project in May 2008



Selected Darwin, Northern Territory as onshore LNG liquefaction plantsiteMore than US$ 20 billion in CAPEXPlan to initially produce over 8 million t/a of LNG and approximately
100 thousand bbl/d of condensate and 1.6 million t/a year of LPG

WA‐285‐P (Ichthys)

AUSTRALIA

30

Permits Location – Ichthys(WA‐285‐P) and others

Proposed site
Wickham Point(Darwin LNG)
Middle Arm Peninsula

31

JPDA06‐105 INPEX Timor Sea, Ltd.

 Participating Interest: 35% (Operator: Eni) PSC: Exploration phase until 2011
 Drilled 6 exploration wells and 3 appraisal
wells since 1994 (9 wells in total)
 Discovered oil in Kitan‐1 and Kitan‐2 in March2008 Received approval of the Development Area
for the Kitan oil field by the Timor Sea
Designated Authority (TSDA) in May 2008
 Reviewing the development of the Kitan oil
field Plan to submit the Development Plan to the
TSDA in May 200932

WA‐155‐P (Part I) (Van Gogh Oil Field / Ravensworth Oil Field) INPEX Alpha, Ltd.

 Participating Interest: 28.5 % Concession Agreement: Exploration Period until February, 2009Production Period for 21 years from the grant of the
production license

Ravensworth Field
 Operator :BHPBP Final investment decision was made in November 2007
 The field is to be developed by tie‐in to an FPSO in
License WA‐12‐R, with a plan to start production in July2010
Van Gogh Defined Area
 Participating Interest:47.499%
 Operator : Apache Final investment decision was made in April 2007
 Scheduled to start production in April 2009
 Daily production of approximately 60 thousand barrels
at peak production
33

ACG INPEX Southwest Caspian Sea, Ltd.

50km

The Caspian sea

 Production*1,2: Approximately 610,000 bbl/dAzerbaijan

ACG

Baku

ACG

Azeri

RussiaThe Aral Sea
Uzbekistan
The Caspian Sea

Georgia
Armenia

Azerbaijan
Turkmenistan

Iran

500km

＊1 All field base and average of September 200834

*2Gas release occurring at the Central Azeri Platform on September 17.
Temporarily shut down the platform and continuing activities towards
identifying the source of the gas release. The production is being curtailed.

 PSC: Until 2024

Deepwater portionof the Gunashli
ChiragKazakhstan Participating Interest: 10.0%(Operator: BP) Phase 1 : Starting oil production in the Central
Azeri area in February 2005
 Phase 2 : Starting oil production in the West
Azeri area in December 2005 and in the East
Azeri area in October 2006
 Phase 3 : Starting oil production in the
Deepwater Gunashli area in April 2008

Kashagan, etc. INPEX North Caspian Sea Ltd.

Kashagan Structure

Kairan StructureParticipating Interest: 7.56%



PSC: Until the end of 2021*

Discovered crude oil in the Kashagan in June 2000

In addition to the Kashagan oil field, existence ofhydrocarbon was confirmed in the Kalamkas,
Aktote, Kairan and Southwest Kashagan structuresConcluded a final agreement on 31 October, 2008
on 31 October, 2008 with Kazakhstan authority

Established a new joint operating company (North
Caspian Operating Company). NCOC will takeover the operatorship from Agip KCO in January2009Production start target: 2012

Plateau production will be 300 thousand bbl/d andfurther increase to 450 thousand bbl/d at theExperimental Program stage. At the Kashagan full
field development stage, a plateau of 1.5 million
bbl/d is planned towards the end of the next
dacadeCaspian Sea

KashaganSouthwest Structure

Aktote Structure

RussiaKazakhstan

Kalamkas Structure

Turkey

China
Iran

India

*We have the options to extend the contract period by 20 years

35BTC(Baku‐Tbilisi‐Ceyhan) Pipeline Project INPEX BTC Pipeline, Ltd.
 Participating Interest: 2.5%

RUSSIA(Operator : BP)
Black Sea

GEORGIA

Tbilisi

BTC Pipeline

ARMENIA

CaspianSea

Baku

AZERBAIJAN
TURKEY

IRAN

SYRIA

MediterraneanSea Signed project finance contract to raise
capital for the construction of the pipeline in
February 2004
 Commenced crude oil export in June 2006
from Ceyhan terminal

CeyhanCYPRUS Obtained stock of the operating company(BTC Co.) through INPEX BTC Pipeline, Ltd.
in October 2002

IRAQ

 Complete commissioning work 1 million
bbl/d capacity in 2007 2Q
 Cumulative transportation volume reached
470 MM bbls by September 2008
 1.2 million bbl/d capacity expansion projectwill be completed by the end of 2008 or early
2009

36

ADMA Japan Oil Development Co., Ltd. (JODCO)

Production Oil Field
Underwater pipeline

ADMA Block
Umm Shaif Oil Field
Das Island

Lower/Upper Zakum
Oil Field

Satah Oil Field
Zirku Island

Umm Al‐Dalkh Oil Field

37

Abu Dhabi Umm Shaif / Lower Zakum
 Participating Interest: 12.0% (Operator :ADMA‐OPCO*) Upper Zakum / Umm Al‐Dalkh / Satah Participating Interest:
Upper Zakum / Umm Al‐Dalkh: 12.0%
Satah: 40.0% (Operator : ZADCO*)*Operating company established by ADNOC and other companies
including JODCO. JODCO has 12% interest in each company.

 Concession Agreement: Until 2018
(Contract of Upper Zakum extended from 2018
to 2026)
 Continuous development to keep andincrease the production level by Water injection to all the fields
 Gas injection to Umm Shaif / Lower
Zakum fields

Azadegan Azadegan Petroleum Development, Ltd
 Participating Interest: 10%(Continuing discussions in detail with Iranian side) Service Contract (Buyback Contract)
Tehran Two Phase Oil Field Development Project*

BaghdadAzadegan Oil Field
Iraq

Ahwaz

Kuwait

Iran
100km

38

*All field base; timing of production start based on the premise that thedevelopment work start within 2009

In phase 1, planned to reach 150,000
bbl/d in 2012

In case we move onto phase 2, planned
to reach 260,000 bbl/d after 2016

Venezuela Projects Teikoku Oil & Gas Venezuela, C.A., etc
Copa Macoya / Guarico Oriental Blocks
Teikoku Oil & Gas Venezuela, C.A.
Copa Macoya / Guarico Oriental Blocks

 Gas and oil exploration and development
project Joint Venture Agreement: 2006‐2026
 INPEX’s Share

Caracas

Gas JV : 70%

Oil JV : 30%

 Production volume*

PT Moruy II, S.A. **

Moruy II Block

Gas: Approximately 71 million cf/d
(limiting production volume by therequest from the government)

Venezuela



Crude oil: Approximately 2,000bbl/dMoruy II Block Gas exploration project Participating Interest: 50%＊All field base and average of September 2008**Joint venture company with PETROBRAS (50:50)

39(Operator: PETROBRAS)
 Preparing to drill the 1st exploration well

Frade Frade Japão Petróleo Limitada (FJPL)FJPL’s Participating Interest: 18.3%(Operator : Chevron)*FJPL is an equity method affiliate of INPEX. (INPEX owns 37.5%
shares of FJPL through a subsidiary.)

Frade BlockConcession Agreement: Until 2025
Frade

Final investment decision was made in June2006

RoncadorScheduled to start production in April 2009
Daily production of approximately 100
thousand bbl/d at peak production

Albacora Leste

Albacora

CamposMacae
Rio deJaneiroMarim

40

Frade FPSO

Cuervito / Fronterizo Teikoku Oil de Burgos, S.A. de C.V.*

Cuervito / Fronterizo Blocks
 Gas development project Multiple Service Contract
 Participating Interest: 40%(Operator: PETROBRAS)
Teikoku Oil de Burgos*
Cuervito / Fronterizo Blocks

 Production volume**:

Gas: Approximately 36 million cf/dCrude oil: Approximately 700bbl/d

Cuervito

Fronterizo＊ INPEX’s share 75％＊＊ All field base and average of September 200841

Gulf of Mexico (USA) Projects Teikoku Oil (North America) Co., Ltd.

 Gas and oil exploration and development
project
 Concession Agreement
 Participating Interest:

Ship Shoal 72: 25%

West Cameron 401/402: 25%

Main Pass 117/118: 10%

LSL 19320/19372/19421/19574: 25％

 Production volume*

LSL 19320 / 19372/ 19421 / 19574＊ All field base and average of August 2008 (Production stopped in September because of Hurricane in September)42Gas: Approximately 21 million cf/dCrude oil: Approximately 1,200bbl/d

Offshore D.R. Congo Teikoku Oil (D.R. Congo) Co., Ltd.

Offshore D.R. Congo Block

Offshore D.R. Congo Block Oil exploration and development
project
 Concession Agreement: 1969‐2023
 Participating Interest: 32.28%(Operator: Perenco)
 Production Commencement: 1975
 Production volume*: Approximately
12,000 bbl/d＊ All field base and average of September 200843

Egypt Projects The Egyptian Petroleum Development Co., Ltd.*, etc.
West Bakr Block

Cairo



Oil and gas exploration and development project

PSC: 1975‐ 2020+5years optionParticipating Interest: 100%(Operator)

Production commencement: 1980

Production volume**: Approximately 4,000bbl/dSouth October BlockRiver Nile

The Egyptian Petroleum
Development Co., Ltd. (EPEDECO)*West Bakr Block

Cairo

Teikoku Oil Suez SOBSouth October Block
Teikoku Oil Nile NQR
North Qarun Block* INPEX’s share 52.7％

44** All field base and average of September 2008



Oil and gas exploration project

PSC: 2005‐2009Participating Interest: 35% (Operator: Dana Petroleum)

Drilling exploration well

North Qarun Block

Oil and gas exploration project

PSC: 2005‐2009Participating Interest: 25% (Operator： Dana Petroleum)Interpretation of seismic survey

Algeria Projects Japan Ohanet Oil & Gas Co., Ltd. / Teikoku Oil (Algeria) Co., Ltd.
Ohanet Block Gas development project Risk Service Contract: 2000‐2011
 JOOG’s interest: 30% (Operator: BHPB)

Algeria Production commencement：Oct 2003
 Production volume**

Japan Ohanet Oil & Gas (JOOG)*
Ohanet Block

Dry Gas: Approximately 564 million cf/dCondensate: Approximately 23,000 bbl/d

LPG: Approximately 22,000 bbl/d

El Ouar I/II Blocks
 Oil and gas exploration and development
project

Teikoku Oil (Algeria)
El Ouar I/II Blocks

 Concession Agreement
 Preparing development of oil andgas/condensate fields
 Participating Interest: 10.29%(Operator: ENI)

＊ INPEX’s share 15％45＊＊ All field base and average of September 2008

Libya Projects Teikoku Oil Libya UK Ltd / IPEX Libya, Ltd.

 Oil and gas exploration project
Tunisia

 PSA:‐ 81‐2/82‐3/42‐2&4 ： 2005‐2010‐ 113‐3&4 ： 2007‐2012

Mediterranean

Tripoli

Benghazi Participating Interest

81-2, 82-3
42-2/42-4
Egypt

Algeria

Libya‐ 81‐2, 82‐3: 73%(Operator)‐ 42‐2&4: 40%(Operator: TOTAL)‐ 113‐3&4: 85% (Operator)

113-3 & 4

 Drilling Exploratory wells (81‐2/82‐3)
 Interpretation of 2D seismic survey data
(42‐2&4)

Chad
Sudan

46

 Processing of 2D seismic survey data
(113‐3&4 )Joslyn Oil Sands Project INPEX Canada, Ltd.
Participating Interest: 10%

Operator：TOTALConcession Agreement (Lease)

7280060T24 : Indefinite



7404110452 : 15 years primary lease from Nov 2004*



7405070799 : 15 years primary lease from Jul 2005**Will be extended

7405070799

7280060T24

Production*: Approximately 3,000 bbl/d

Oil Sands Upstream Project:

7404110452(220km2)Started production in late 2006 using SAGD
technology and expected to reach 10,000 barrels ofbitumen per day at plateau by 2009.



Large scale development by cutting off mining
development: Around 100 thousand barrels ofbitumen per day in the beginning of 2010’s (firstphase), to around 200 thousand barrels of bitumen perday (second phase)

Upgrader Project:

47

Construction of upgrader plant in Edmonton, Alberta,
and producing 130 thousand barrels per day of lightsweet synthetic crude. The plant could becommissioned in the beginning of 2010’s (first phase)＊ All field base and average of September 2008

Sakhalin I Sakhalin Oil and Gas Development Co.

0

5



Sakhalin Oil and Gas Development Co. （SODECO）:
INPEX Holdings owns 5.75% of the total share(In the process to purchase to maximum 33% of the
SODECO’s share from the Ministry of Economy, Tradeand Industry which has inherited a 50% of the
SODECO’s shares from JNOC)SODECO’s Participating Interest: 30.0%

Production*:

10

Kilometers

Gas Field
Oil Field

OdoptuStructure Crude Oil : Approximately 180,000 bbl/d
 Gas: Approximately 718 million cf/dOperator: ExxonMobil

Partners: ONGC Videsh, Sakhalinmorneftegas‐Shelf,
RN‐Astra

PSC: In Dec. 2001, “Commerciality Declaration” of the
project was authorized by the Russian government
and the project moved into development phase for 20
years



Commenced production in Oct. 2005; commenced
crude oil export in 2006

Commenced natural gas supply to Russian domestic
market, and considering natural gas supply to
Chinese and other markets

Sakhalin
IslandVal

ChayvoStructure48＊ All field base and average of September 2008

Arkutun‐Dagi
StructureEast China Sea INPEX CORPORATION 1969: Application of exploration rights
 1981, 1984: Seismic survey
Pinghu Field
Kashi Field(Chinese name:Tianwaitian Field)
Shirakaba Field(Chinese name:
Chunxiao Field)

 1992: Discovery of Pinghu by CNOOC,
Production commencement in 1998

Japan‐Korea
JDZ 1997~1999: Seismic survey by JNOC
 2004~2005: Seismic survey by JOGMEC

 Apr. 2005: Starting a procedure of setting
exploration rights by METI, → We submit
promotion to set the rights of 3 Areas(Approximately 400km2) in application
This map is based on the METI press release on April 13th 2005
Areas (42,000km2) to Kyushu Bureau of
METI
Area with Exploitation

Gas field

Oil and Gas field Aug. 2005: Setting exploration rights of 3
Areas
 We watch a progress of government‐to‐government talks
49

Key Investments and Contracts I
Company

Field / Project NameCountry

Contract Type

OwnershipStage

Minami‐Nagaoka, etc. *JapanConcessionｰ

INPEX CORPORATION

MahakamIndonesia

PSｰ

INPEX Natuna

South Natuna Block ‘B‘Indonesia

PS

100%

MI Berau B.V.

Berau(Tangguh LNG Project)

IndonesiaPS

44%

INPEX Masela

Masela(Abadi)*IndonesiaPS

51.63%INPEX Sahul

Bayu‐Undan

JPDA

PS

100%

INPEX Browse

WA‐285‐P(Ichthys)* etc.

Australia

Concession

100%

Preparation for Development

INPEX Timor Sea

JPDA 06‐105(Kitan)

JPDA

PS

100%

Under discussion for Development

INPEX Alpha

WA‐155‐P(Part 1)(Van Gogh) etc.

Australia

Concession

100%

INPEX Southwest Caspian Sea

ACG

Azerbaijan

PS

51%

INPEX North Caspian Sea

Kashagan

Kazakhstan

PS

45%

Japan
INPEX CORPORATION

Asia/Oceania

Eurasia (Europe ‐ NIS)

Note： *Operator project50

Preparation for Development

Key Investments and Contracts II
Company

Field / Project NameCountry

Contract Type

Ownership

Stage

The Middle East
JODCO

ADMA(Upper Zakum, etc.)

UAE

Concession

100%

Azadegan

Azadegan

Iran

Service100%

Teikoku Oil (D.R. Congo)

Offshore D.R.Congo

D.R.Congo

Concession

100%

The Egyptian Petroleum Development

West Bakr*

Egypt

PS

52.7%

Teikoku Oil Suez SOBSouth October

Egypt

PS

100%

Teikoku Oil Nile NQR

North Qarun

Egypt

PS

100%

Japan Ohanet Oil & Gas

OhanetAlgeria

Service15%

Teikoku Oil (Algeria)

El Ouar I/II Blocks

Algeria

Concession

Teikoku Oil Libya UK Ltd

81‐2/82‐3

Libya

PS

100%

INPEX Libya

42‐2&4/113‐3&4

Libya

PS

100%

Joslyn Oilsand

CanadaConcession

100%

Africa

100% Under discussion for Development

Americas
INPEX Canada（Open cut mining：Preparation for Development）

Teikoku Oil & Gas Venezuela

Copa Macoya* / Guarico Oriental

Venezuela

JV

100%

Teikoku Oil de Burgos

Cuervito / Fronterizo

MexicoService75%

Teikoku Oil (North America)

Ship Shoal 7 2etc.

USA

Concession

100%

Frade Japão Petróleo Limitada

Frade

BrazilConcession

37.5%**

Note： *Operator project** Frade Japão Petróleo Limitada is subsidiary of INPEX Offshore North Campos (INPEX’s equity method affiliate). 37.5 of ownership means indirect investment from INPEX through
INPEX Offshore North Campos.

51

Others52

Production Sharing Contracts

1. Cost Recovery Portion Non‐capital expenditures incurred for
production and recovered during thecurrent period
 Scheduled depreciation of the capital
expenditures for the current period andrecovered during the current period Recoverable costs that have not been
recovered in the previous periods

Cost Recovery Portion

Host Country Profit Oil

Host Country
Share

Contractor
Profit Oil

Contractor
Share

2. Equity Portion (Profit Oil)

: Host Country Take
: Subject to Tax: Not Subject to Tax

53

Contractor Take

Accounting on Production Sharing Contract
Cash Out

Assets on Balance Sheet

Income Statement

Project under exploration phase
Exploration Expenditures

Recoverable accounts under
production sharing
Project under development andproduction phase

Development Expenditures
Recoverable accounts under
production sharing
Production Costs(Operating expenses)
Project under development andproduction phase
Acquisition Costs

54

Exploration and development
rightsProvision for allowance forrecoverable accounts under
production sharing

Cost of sales Recovery of recoverable accounts
under production sharing (Capital
expenditures)

Cost of sales Recovery of recoverable accounts
under production sharing (Non‐Capital expenditures)
SG&A Depreciation and amortization
Other Expenses
 Amortization of exploration anddevelopment rights

Accounting on Concession Agreement

Cash Out

Assets on Balance Sheet

Income Statement

All exploration costs are
expensed as incurred
Exploration Expenditures

Development Expenditures

Production Costs(Operating expenses)

Acquisition Costs

55

Exploration expenses

Tangible Fixed Assets

All production costs are
expensed as incurred

Mining Rights

Cost of sales(Depreciation and amortization)

Cost of sales(Operating expenses)

Cost of sales(Depreciation and amortization)

Crude Oil Price($) 150
Brent

140
130
120
110
100
90
80
70
60
50
Apr.

May

Jun.

WTI

Jul.

Aug. Sep.

Dubai

Oct.

Nov. Dec.

Jan.

2007

56

Feb.

Mar.

Apr. May. Jun.

Jul.

Aug. Sep.

Oct.

2008

Apr.‐Sep.
‘07

Apr. ’07‐
Mar. ‘08

2008

Apr.‐Sep.
‘08

Average

Average

Apr.

Mar

Jun.

Jul.

Aug.

Sep.

Average

Brent

71.67

82.14

110.48124.69133.73134.56115.24100.79119.91

WTI

70.21

82.25

112.46125.46134.02133.48116.69103.76120.98

Dubai

67.43

77.36

103.41119.50127.82131.27112.8695.90

115.13