CSR Report 2008

Taking full advantage of synergistic integration
into the new company, we are committed todeveloping energy in a safe and environmentally
responsible manner while contributing to thedevelopment of the communities.
In an increasingly competitive environment, the new INPEX CORPORATION was launched in
October 2008—setting itself on a path to build a solid business foundation characterized bystrong international competitiveness from which we can achieve sustainable growth in our
corporate value, and ensure a stable and efficient supply of energy to our customers.

April 2006

October 2008

INPEX Holdings, Inc.

Merger

The New I NPE X CORPORATI ON
The former
INPEX
CORPORATION

Overseas
Operations

Teikoku OilCo., Ltd.

Overseas
Operations

Domestic
Operations

Overseas
Operations

Domestic
Operations

New
Businesses

Table of Contents

Company Overview
Company name: INPEX CORPORATIONA Message from the President

04

Business Activities and Broader Consideration for Stakeholders

06

Corporate Governance and Internal Control

08

Compliance10

Established: April 3, 2006
Capital: 30 billion yen
Head office: Akasaka Biz Tower 31st to 34th floors, 5-3-1 Akasaka, Minato-ku
Tokyo 107-6332 Japan
Telephone: +81-3-5572-0200

Feature Story

Fiscal year end: March 31

Fulﬁlling Our Commitment toProviding a Stable Supple of Energy

11Company History

12

Round-Table Discussion

14

Going Boldly Forward with HSE Initiatives

18

Main businesses: Prospecting, exploration, development and sale of oil,natural gas and other mineral resources, and making loans and investments incompanies engaged in such operations.

Financial Information■ The former INPEX CORPORATION■ The new INPEX CORPORATION■ Teikoku Oil Co., Ltd.

Net Sales (million yen)
478,586

2004

84,032704,234

2005

100,716

2006

969,7122007

1,202,9650

300,000

600,000

900,000

1,200,000

1,500,000

76,493
9,276
103,4762005

15,485

2006

165,0912007

173,245050,000100,000

150,000

19

HSE Management System

20

Environmental Impacts of Business Activities

22

Nurturing Consideration for Regions and the Earth24

Ensuring Operational Safety

32

Employee Health Management

34

Environmental Performance Data by Site

35

Building Good Relationships with All Stakeholders

Net Income (million yen)
2004

A Message from the Director for HSE

36

Serving Our Customers

37

Working with Our Business Partners

39

Valuing Our Employees

40

Contributing to Communities

42

Communicating with Stakeholders

48

A List of Indicators Based on GRI G3 Guidelines 2006

50

Third-Party Comment

51

200,000

Editorial Policy

Net Production by Region
Americas 3%
Middle East andAfrica 34%

Japan 8%Company Names

Total

423

This report updates you on corporate social responsibility (CSR) activities
being undertaken by the INPEX Group. We will continuously seek
opportunities to improve our CSR reports.

Asia and Oceania 42%

thousand
BOEPD1)

Eurasia 13%

In this report, the new INPEX CORPORATION and the INPEX Group arereferred to as the Company and the Group, respectively, and former INPEXCORPORATION and Teikoku Oil Co., Ltd. as the former INPEXCORPORATION and Teikoku Oil, respectively.

Scope of Reporting and Data Compilation

Americas 2%
Middle East andAfrica 45%●

Japan 9%

Total

1,645

INPEX CORPORATION and its 60 consolidated subsidiaries.
Environmental performance data for the Group’s domestic operations
published in this report are a compilation of data from the Company’s
Domestic Operating Division, Teiseki Pipeline Co., Ltd., Teiseki Topping
Plant Co., Ltd. and Offshore Iwaki Petroleum Co., Ltd. Concerning
environmental performance data, 50% of actual results of Offshore Iwaki
Petroleum Co., Ltd. are added to the total, corresponding to theCompany’s ownership of a working interest.
●Environmental performance data for the Group’s overseas operations
published on pages 22, 23 and 35 of this report are a compilation of datafrom Gas Guarico, S.A., Bakr Petroleum Co., INPEX Masela, Ltd., INPEX
Browse, Ltd., INPEX Libya, Ltd., Teikoku Oil Libya U.K. Ltd.
●The Company’s Domestic Operating Division and Offshore Iwaki
Petroleum Co., Ltd. have signed on to the program to reduce greenhousegas emissions called for by Keidanren.
Voluntary Action Plan on the Environment. (Greenhouse gases emitted
during a decarbonation process at the Minami Nagaoka Gas Field notincluded.)●The Company’s Domestic Operating Division, Teiseki Pipeline Co., Ltd.
and Offshore Iwaki Petroleum
Co., Ltd. are participating in the program to reduce emissions of volatileorganic compounds called for by the Japan Natural Gas Association.
●Data on freight volume came from Teikoku Oil Co., Ltd.
●

Proved Reserves by Region2)

Asia and Oceania 32%

MMBOE3)Eurasia 12%1) Barrels of oil equivalent per day2) Proved reserves are evaluated in accordance with SEC regulations, and do not include those thatare not eligible for third-parties’ deposit evaluation reports, nor those undergoing related
governmental approval processes, but do include proved reserves owned by equity method
affiliates.
3) Million barrels of oil equivalent

Forward-Looking Statements
This report includes forward-looking information that reflects the plans and expectations of
INPEX CORPORATION and its affiliates (hereinafter called the INPEX Group). Suchforward-looking information is based on the current assumptions and beliefs of the INPEXGroup in light of information currently available to it, and involves known and unknown risks,
uncertainties, and other factors. Such risks, uncertainties and other factors may cause the
INPEX Group’s actual results, performance, achievements or financial position to bematerially different from any future results, performance, achievements or financial position
expressed or implied by such forward-looking information.
Please be advised that the INPEX Group shall assume no responsibility for such risks.

Reporting Period
April 1, 2007 to March 31, 2008
(This report may contain references to certain activities that were initiatedafter April 2008.)●

INPEX CORPORATION CSR Report 200803

A Message from the President

As a global E&P company, we strive to achieve sustainablegrowth by undertaking CSR initiatives
INPEX Group is committed to contributing to
the development of society
Effective October 1, 2008, INPEX Holdings Inc. has mergedwith its subsidiaries INPEX CORPORATION and Teikoku
Oil Co., Ltd. to become the new INPEX CORPORATION, an
operating holding company.
INPEX Group has as a corporate mission to provide
customers with a stable and efficient supply of energy by
exploring and developing oil and natural gas resources so
as to bring a better quality of life to communities. In carryingout this mission in 72 projects in 26 countries (as of October
1, 2008), we firmly believe in demonstrating a sense of
ethics, giving highest priority to safety and environmental
preservation in operations, and contributing to thecommunities in which we operate. Accordingly, we fulfill therole of a good corporate citizen by contributing to thedevelopment of society through constant communication
with a wide range of stakeholders. This is precisely what
constitutes CSR (corporate social responsibility) and, in turn,should bring sustainable growth and development to us.

Naoki Kuroda
President
INPEX CORPORATION

04

INPEX CORPORATION CSR Report 2008

As a responsible E&P company, we proactively
address the issue of climate change
In 2007, the Intergovernmental Panel on Climate Change(IPCC) reported that scientific evidence had established that
global warming was an unequivocal fact, and called for
reductions in greenhouse gas emissions to mitigate global
warming. At the G8 Hokkaido Toyako Summit held in July
2008, leaders of the world’s major economies signed adeclaration on energy security and climate change, whichstated their commitment to making a joint effort toward therealization of a “low-carbon society” to counter global
warming.
INPEX Group has been developing and producing
natural gas—a clean energy source—and conducting
technical research on the commercialization of
next-generation fuels, such as gas-to-liquids anddimethyl ether, which have lower environmental loads thanoil. We will step up our engineering efforts to implement
carbon capture and storage—an approach endorsed by the
IPCC, to reduce CO2 emissions—and to generate methane
using microbes found in depleted oil fields.

Our CSR activities are focused on theenvironment and education
It is imperative for INPEX Group to maintain good
relationship with communities around the world, in which we
carry out our E&P operations for oil and natural gas. To doso, as our CSR Policy states, we strive to contribute to thedevelopment of host countries and regions, respecting theircultures and customs.
Environmental preservation has become a global issue.
As I stated earlier, we develop and produce natural gas andare working on cleaner next-generation fuels. Furthermore,
we are engaged in community development throughparticipation in forestation programs and biodiversity
conservation programs. As we all know, human resources
development is also extremely important. It is the top of ourpriority tasks for social development to support education
programs in the communities where we operate.

We contribute to the realization of asustainable society through the execution of
our core business
INPEX Group has established a three-tiered businessMissionstrategy to become an integrated energy company. The
three tiers are: (1) To continue to expand our oil and gas
upstream business; (2) To establish a natural gas value
chain; and (3) To supply a wide range of energy in order tocontribute to a sustainable society.
Specifically, we will work more closely with other players
in the international arena to expand our oil and gas
upstream business, so as to secure energy sources. In
addition, we will build a more efficient system of supplying
natural gas by integrating our gas sources we own overseas
with our gas-supplying infrastructure in Japan. Moreover, we
will help promote a low-carbon society through thedevelopment of new alternative energy sources and inparticular renewable energy sources. In essence, we willcontribute to the realization of a sustainable society throughimproved execution of the core business, in pursuit of ourcorporate mission of securing a stable and efficient supplyof energy.
In conclusion, I would like to mention that this CSR reporthas been compiled for the first time in accordance with the
Sustainability Reporting Guidelines published by the Global
Reporting Initiative, which enable us to report on our CSR
activities in an improved manner. We hope you find thisreport informative and we would appreciate your feedback
and comments.
Thank you.

Corporate Social Responsibility Policy

The mission of INPEX CORPORATION is to provide a stable andefficient supply of energy to our customers by exploring anddeveloping oil and natural gas resources throughout the world.
Through this business, we aim to become an integrated energy
company that contributes to the community and makes it morelivable and prosperous.

INPEX Group conducts business efficiently and proactively with along-term perspective. Guided by the leadership of top
management, we are committed to fulfilling our corporate social
responsibilities. Our key principles include:

1. Deliver energy in a stable and efficient manner.

Our Stakeholders

2. Comply with laws, rules and regulations and adhere to ethicalbusiness conduct.

Shareholders
andInvestors
The
Government
and Peopleof Japan

Employees

Local
Communities
and NGOsINPEXCORPORATIONOil and Gas
ProducingCountries

3. Communicate timely and openly with shareholders, employees,
customers, business partners and other stakeholders.
4. Value the individuality of employees, secure a safe, healthy andworker-friendly environment, and provide opportunities for careerdevelopment.
5. Recognize our responsibility to help preserve the environmentand contribute to sustainable development.

Business
Partners

6. Contribute the development of our host countries andcommunities, based on an understanding of cultural diversity.

ClientCompanies

INPEX CORPORATION CSR Report 200805

Business Activities and Broader Consideration for Stakeholders

We are engaged in the energy-supply business on a global basis,
ranging from the acquisition of license blocks to the sales of
products, in which we give due consideration to the diversified
stakeholders in and around our business
Acquisition ofLicense Blocks

Exploration andAppraisal

Primary Activities

Primary Activities●Collect extensive information on areas in which oil and natural gas are●Collect basic information on potential subsurface accumulations of oil andexpected to exist.
●Conduct preliminary technical evaluations of areas using documented

materials publicly and commercially available, followed by an assessmentof the legislative and political stability and economic situation of the areasand siting conditions.
●Apply and bid for concession rights and/or working interest.

natural gas using terrestrial geological surveys, aerial photographs, satellite
images and other available data in and around the licensed blocks.
●Conduct geophysical surveys, which include gravity, magnetic and seismic

surveys, to extract prospects of oil and natural gas accumulations.
●Determine locations of exploration wells in the prospects, and drill wells to

confirm the presence of the oil and gas fields.

●Conclude contracts for the license blocks.

●Drill appraisal wells to evaluate the extent of the discovered oil and gas

fields.
●Analyze subsurface information derived from well and geophysical surveys

to confirm the lateral continuity of oil and gas reservoirs and to estimate
reserves—volume of oil and gas.
●Determine the commercial viability of developing the fields in acomprehensive manner.

Consideration for Stakeholders
Signing a contract●Implement occupational health and safety management systems in projectsites.
●Minimize ecological impacts and preserve cultural heritage in and aroundConsideration for Stakeholders

project sites.

●Develop stronger relationship with the governments of oil- and●Exercise risk assessment and safety controls to prevent incidents in projectgas-producing countries.

sites and, in cases where incidents do occur, respond to them quickly.

●Make our business absolutely free of bribery and corruption.

●Comply with the laws and regulations of host countries and communities.

●Comply with the principle of respecting human rights.

●Respect the cultures and customs of host countries and communities.

●Launch a project for the protection of nature, with due consideration for the

ecosystem.

●Stimulate local businesses, by such means as procuring materials andequipment from local suppliers and building community facilities.

Minami Nagaoka
Gas Field
Offshore Mahakam Block
Masela BlockACG Oil Fields/
BTC Pipeline/
Kashagan Oil Field
ADMA BlockE&P projects undertaken by our consolidated subsidiaries and equity method affiliates
06

INPEX CORPORATION CSR Report 2008

Ichthys Gas andCondensate Field

Development andProduction

Refining,
Shipment and Sales

Primary Activities

Primary Activities●Devise development plans for oil and gas fields.

Crude Oil

●Drill production wells to commercially recover oil and natural gas.

●Crude oil produced in Japan is transported in tankers to the Group’s●Construct processing facilities for separating oil and gas, and removing

impurities. Construct facilities to ship oil and gas.
●Produce oil and gas.

refineries, where it is converted into gasoline, naphtha, kerosene, gas oil,fuel oil and liquefied petroleum gas (LPG), which is sold and shipped tocustomers via oil tankers and tank trucks.
●Crude oil produced outside Japan is sold and shipped on oil tankers or via

pipeline to refineries or trade companies for refining, to power companies
for use in thermal power plants, and to petrochemical companies for
manufacturing of chemical products.
●Swap crude oil with international oil companies to meet customer needs.

Natural Gas●Domestic natural gas is sold to gas companies and large factories via

pipelines.
Oil production facility in ADMA Block,the United Arab Emirates

Gas-processing facility at Koshijihara Plant
in Niigata Prefecture, Japan

Consideration for Stakeholders●Preserve the environment of the project areas by such methods as making

good use of associated gas, and minimizing the ecological impact insurrounding areas.

●Natural gas produced overseas is sold either to power and gas companies

primarily in Japan as liquefied natural gas (LNG, composed mostly of
methane) and LPG (composed mostly of propane and butane), or to thegas-producing countries and their neighbors via pipelines.
●In 2014, the planned Naoetsu LNG Receiving Base is scheduled to begin

receiving LNG produced overseas for resale to the Japanese market
through the domestic gas pipeline network, establishing a gas value chain.

●Preserve cultural heritage in the project areas.
●Implement an occupational health and safety management system at the

project site.
●Exercise risk assessment and safety controls to prevent incidents in the

project area and, in cases where incidents do occur, respond to themquickly.
●Implement emergency response plans.
●Make a contribution to an economic development of oil- and gas-producing

countries and regions, such as by hiring local people and procuring
materials and equipment from local suppliers.
●Comply with the laws and regulations of host countries and communities.
●Respect the cultures and customs of host countries and communities.
●Conduct fair purchasing practices with suppliers.

Consideration for Stakeholders●Exercise risk assessment and safety controls to prevent incidents and, incases where incidents do occur, respond to them quickly.
●Minimize environmental loads by methods such as reducing CO2 emissions

and chemical releases, and preventing soil contamination as well as air andwater pollution.
●Take measures against pollution, such as reducing nitrogen oxide andsulfur oxide emissions.
●Ensure safety during transportation, such as the prevention of—andresponse to—accidents at sea and to pipelines.
●Reduce use of energy during shipments.
●Minimize ecological impacts in and around the area where pipelines arebeing constructed.
●Carry out routine maintenance of pipelines. Improve the stability andreliability of pipeline networks by reinforcing and expanding them based on
simulated predictions of supply and demand.
●Implement emergency response plans.
●Reduce environmental loads during shipments.

Joslyn Oil Sand
Project
Guarico Oriental Block/Copa Macoya Block

INPEX CORPORATION CSR Report 200807

Corporate Governance and Internal Control

We spare no effort to enhance corporate governance so as toachieve greater management efficiency and soundness
Overview of Our Corporate Governance
At INPEX CORPORATION (hereinafter referred to as “theresponsible for auditing directors’ execution of their duties with

Company”), the Board of Directors meet once a month orregard to overall operations and individual projects.

as-needed, to review and make decisions on the execution of

The Company has established the Internal Audit Unit, which isimportant business operations, and to oversee the directors’

independent from business divisions and reports directly to the

execution of their duties. In addition, the Executive Committee is in

President to ensure the appropriateness and efficiency of theplace to expedite decision-making when quick decisions need to beCompany’s business activities.

made on matters that are not subject to the approval of the Board of

The Internal Audit Unit reviews and evaluates the status of

Directors, and proposals and recommendations are formulated andmanagement bodies and the efficiency in business operations,submitted to the board for review and approval.

identifies problem areas, submits reports, and performs follow-up

The Company exercises governance over its subsidiaries inaudits to ensure ongoing improvements. The unit consults withaccordance with the “Group Regulations.” Moreover, the Company

independent auditors and statutory auditors in a timely manner to

employs a statutory auditor system; statutory auditors attend board

ensure appropriate execution of management.

meetings and the Executive Committee sessions, interview relevant
divisions and receive reports from them as needed, and are

The Company has selected Ernst & Young ShinNihon LLC as its
independent auditor to provide accounting audits.

Corporate Governance System

Shareholders Meeting

Appoint/Dismiss

Independent Auditors

Appoint/Dismiss
Accounting Audit

Appoint/Dismiss
Audit

Board of Directors
16 Directors, including
4 from outside the Company

Board of Statutory Auditors
5 Statutory Auditors, including
3 from outside the Company

Appoint
Appoint/Supervise/Dismiss

Executive Committee

President

Compliance Committee

ReportAccounting Audit

Audit
Internal Audit Unit

Internal Audit

Operating Officers
11 Director and Operating Officers
17 Operating Officers

DivisionsInternal Audit

Management

Subsidiaries

08

INPEX CORPORATION CSR Report 2008

Special Class Share
The Company’s Articles of Incorporation stipulate that certain major

managed in a manner inconsistent with its role of securing a stablecorporate decisions—the appointment and removal of directors,

energy supply for Japan as a national flag company; (2) will likely

disposition of material assets, amendments to the Articles ofadversely affect its role of efficiently securing a stable supply of

Incorporation, mergers, exchange or transfer of shares, capitalenergy for Japan as a national flag company; or (3) may affect the

reductions and dissolution—require a resolution by the holder of theexercise of voting rights of the special class share.

special class share in addition to the approval of a shareholders

With the existence of this class of share, the Company canmeeting or the Board of Directors, depending on the requirements

minimize the risk of losing management control to foreign-owned

specified for each type of decision. The Minister of Economy, Tradeconcerns and of an unsolicited takeover for speculative reasons.

and Industry is the holder of the special class share.

Moreover, since the scope of the veto is limited and guidelines have

The Ministry established in its Bulletin guidelines for the exercise

been established for exercising veto rights, the special class shareof the special class share’s veto rights, under which the Minister

is a minimum necessary measure that is highly transparent andmay veto any of the above-mentioned major corporate decisions

does not unduly interfere with the Company’s ability to operate

only to the extent that the Minister determines that a proposed

efficiently and flexibly.

action or transaction (1) will likely result in the Company being

Establishing an Internal Control System
A series of improper practices, such as accounting frauds,
committed by large corporations have been exposed, which has

findings.
The Company has established the Internal Control Promotion

made it a pressing issue to ensure the reliability of financial

Committee, which is tasked with determining the scope andreporting. One such measure is an internal control reporting systemprocesses subject to internal control assessment, and establishingstipulated by the Financial Instruments Exchange Law and put into

entity-wide controls, process-level controls and IT controls overpractice in April 2008. The system requires the management of afinancial reporting. Currently, the committee is in the process ofcompany to assess the effectiveness of internal controls over its

evaluating operational status of the control system.

financial reporting and submit an internal control report on the

Establishing an Information Security Management System
INPEX Group (hereinafter referred to as “the Group”) set up theInformation Security Working Committee in June 2007 as a

Information Security Management System

springboard for establishing an information security management

Chief Information Security Officer

system. The committee is responsible for developing the basic
information security policy for the Group and, as a first step,
published internally “Information Security Management Rules” and“Information Security Committee Procedures” in November 2007.

Information Security Committee

The Information Security Committee, created from the procedures,
looks into the system, standards and measures necessary for
maintaining information security, and carries out the PDCA
management cycle1) to ensure continuous improvement ofDivisions
Information Security Manager

Administrative OfficeInformation Security
Administrator

information security level.
1) PDCA management cycle
a four-step model for continuous process improvement, ranging from devising a plan (Plan)
through executing it (Do), monitoring its execution (Check), and applying actions for
improvement (Act).

Information Security
Administrator
Information Security
Administrator

INPEX CORPORATION CSR Report 2008

09

Compliance

We make sure that all employees maintain regulatorycompliance and adhere to high standards of
ethical conduct and business practices,to continue to earn the trust of society
Compliance Policy and System
The Company has established the Compliance Committee, which is

new compliance manual by incorporating good track records andtasked with reviewing the Group’s basic compliance policy andexperiences of both companies.

important issues, and monitoring and managing the implementation

During the fiscal year ended March 31, 2008, none of formerof compliance practices, so as to ensure consistency in compliance

INPEX Holdings, INPEX CORPORATION or Teikoku Oil failed toacross the Group.

meet the compliance requirements.

The Committee also works with statutory auditors, the Board of
Statutory Auditors, independent auditors and the Internal Audit Unit

Compliance System

in order to: (1) develop and implement compliance programs; (2)Board of Directors

monitor their implementation; (3) raise employee awareness ofcompliance policy and procedures; (4) receive reports on andAppoint

ReportCompliance Committee

investigate noncompliance; (5) put a stop to noncompliant conduct

Director in Charge of Compliance(Committee Chairperson): Masatohi Sugioka

by means of warning notices or other means; and (6) establish
measures to prevent recurrence of noncompliant conducts.

Compliance Committee Members (Head of Business Divisions)

The former INPEX CORPORATION and Teikoku Oil eachcompiled a compliance manual on important matters that needed tobe addressed, such as the handling of company information andReportExternal
Consultation(Lawyer)

General Administration Unit

Anonymize

In-house
Consultation

assets, fair trade practices, and safe and secure working
Reportenvironments, and made the manual available to all officers andDepartment in Chargeof Compliance

ReportOfficers and Employees

employees so as to ensure that compliance policy and procedures
were understood and followed. The Company plans to publish a

Help-Line System
The Company has established the Help-Line System, which is(General Administration Unit) or an external expert appointed by thecompliant with provisions of the Whistle-blowers Protection Act,

Compliance Committee receives fraud reports. In the latter’s case,which became effective in April 2006. The Company has devised

incoming reports are shared with the designated unit in a timely“Help-Line Procedures” to implement a fraud-reporting protocol thatmanner.

includes mandatory reporting of fraud or unethical conduct,

Officers and employees can report unethical behavior

fact-finding procedures, protection of whistle-blowers andanonymously and are rigorously protected against retaliatory action

confidentiality of the reports. A department in charge of compliancefor filing such reports.

Questionnaire Surveys on Compliance
We use a questionnaire survey as a tool for implementing thechanges in employees’ compliance awareness after layered training

PDCA cycle to manage compliance activities. During the fiscal year

programs were completed.

ended March 31, 2008, the former INPEX CORPORATION andCommittees at both companies and INPEX Holdings Inc. At Teikoku

effectiveness of their respective compliance programs; the former

Oil, the findings were used for updating its compliance manual.

was intended to determine how much compliance awareness wasdeveloped among its employees while the latter was to gauge the10

Findings from the surveys were reported to the Compliance

Teikoku Oil conducted employee surveys to assess the

INPEX CORPORATION CSR Report 2008

We plan to incorporate findings from surveys into developing
training programs and creating a revised compliance manual.

Feature
Story

Fulfilling Our Commitment toProviding a Stable Supply of Energy

Teikoku Oil and INPEX CORPORATION have merged to become the new INPEX CORPORATION.
In the ﬁrst part of this feature story, we walk you through how the two companies evolved over theyears before they became one. In the second part, our employees share in a round-table discussion
their dedication toward fulﬁlling our commitment to providing astable supply of energy.

INPEX CORPORATION
国際石油開発帝石 CSR
CSRReport
Report 20081111

Fulfilling Our Commitment to Providing a Stable Supply of Energy

Company
History

Leading the way in Japan’s E&P
industry for oil and natural gas

The history of INPEX CORPORATION is the history of Japan’s oil

operated on a production-sharing scheme with Indonesia—Japan’s

exploration industry. Teikoku Oil, which was founded in the prewar

first major step toward developing overseas oil resources. The

modernization period as a statutory company to carry out theformer INPEX CORPORATION expanded its business globally, andJapanese government’s policy of securing oil resources, wasin 2004, it integrated Japan Oil Development Co., Ltd. (JODCO),

privatized after World War 2. It has since been aggressively

which worked with the Abu Dhabi National Oil Company to operate

developing oil and gas fields inside and outside Japan, and has

one of the world’s largest oil fields in Abu Dhabi. Since then, INPEX

been instrumental in establishing a natural gas supply system for

CORPORATION has become Japan’s leading E&P company for oil

the Kanto Koshinetsu Region through Japan’s largest natural gas

and natural gas, and has emerged as a serious player in thepipeline network. The predecessor of the former INPEXinternational arena.

CORPORATION was established in 1966 as a company that

While coming from different historical backgrounds, both theChronology◆ Teikoku Oil’s milestones■ The former INPEX CORPORATION’s milestones

1940 〜
1941 ◆ Founded as a semigovernmental statutory company inaccordance with the Teikoku Oil Law to consolidate
several private oil exploration companies in Japan.
1947 ◆ First oil field discovered in postwar Japan.
1949 ◆ Listed in the First Section of the Tokyo Stock Exchange.
1950 ◆ Became a private company when the Teikoku Oil Law
was abolished.
1959 ◆ The Kubiki Oil and Gas Field discovered in Niigata
Prefecture.

1970 〜
1970 ■ Attaka Field discovered in Offshore Mahakam
1972 ■ Bekapai Field discovered in Offshore Mahakam
1973

JODCO founded.

1973 ◆ Japan’s first sizable offshore gas field in the Pacific
Ocean, the Iwakioki Gas Field, discovered in
Fukushima Prefecture.
1975 ◆ Initiated its first overseas oil development project in theformer Zaire (current Democratic Republic of theCongo).
1975 ■ Changed name to Indonesia Petroleum, Ltd.

1962 ◆ Built the Tokyo Line—Japan’s first long-distancehigh-pressure natural gas pipeline between Tokyo andNiigata Prefecture.

1977 ■ Acquired a working interest in the South Natuna Sea
Block B in Indonesia

1966 ■ North Sumatra Offshore Petroleum Exploration Co., Ltd.
established, the forerunner of INPEX CORPORATION.

1979 ◆ The Minami Nagaoka Gas Field with Japan’s largest
reserve of natural gas discovered in Niigata Prefecture.

1967 ■ Acquired a working interest in the Offshore Mahakam
Block in Indonesia.

■ The forerunner of the former INPEX CORPORATION founded with Indonesia as its core business area
In 1966, the forerunner of the former INPEX CORPORATION was

become the largest supplier of natural gas to the Bontang LNG Plant,

established with the task of developing oil fields in Indonesia. Since

one of the world’s largest facilities of its kind and with an annual LNG

1970, the company has discovered with Total, a French oil and gas

production of 20 million tons—70% of which is shipped to power and gas

company, many oil and gas fields off the coast of Mahakam, and has

companies in Japan.

◆ Building a natural-gas pipeline network◆ Developing and operating the Minami Nagaoka Gas Field

Teikoku Oil has established robust sales operations for natural gas

In 1979, the Minami Nagaoka Gas

under its management priority and has undertaken a series ofField was discovered in the hilly

efforts to build and expand a critically important pipeline network for

Koshijihara area in Nagaoka City,

natural gas since 1959. In 1962, it completed the 310-kilometer-long

Niigata Prefecture. The field became

Tokyo Line—Japan’s first long-distance high-pressure natural gas

operational in 1984 and has become

pipeline between Tokyo and Niigata Prefecture. Currently, thea major gas field boasting Japan’s

company has a pipeline network of 1,300 kilometers in total length

largest natural gas reserve andthat connects the Minami Nagaoka Gas Field and Tokyo throughproduction capacity.

the Kanto Koshinetsu region, supplying natural gas to customers
along and near the pipeline.

Minami Nagaoka Gas Field

12

INPEX CORPORATION CSR Report 2008

former INPEX CORPORATION and
Teikoku Oil have been advocating aculture of austerity and fortitude, andhave something fundamental in■ Discovering new gas fields and expanding E&P business
The former INPEX CORPORATION has been engaged in large
development projects in the Kashagan Oil Field and ACG Oil

common—a mission to provide a

Fields in Caspian Sea. It has also been operating LNG projects

stable supply of energy in relentlessin the Ichthys Gas and Condensate Field in Australia and in the

pursuit of bringing a better quality of

Abadi Gas Field in the Masela Block in Indonesia, both of whichlife to society.

were discovered by the company.
Abadi Gas Field

Ichthys Gas
Condensate Field

1980 〜

2000〜

1984 ◆ The Minami Nagaoka Gas Field became operational withthe establishment of the Koshijihara Plant.

2001 ■ Changed name to (the former) INPEX CORPORATION.

1986 ■ Acquired participating interest in Offshore Northwest
Java Block and Offshore Southeast Sumatra Block.
1989 ■ Acquired a working interest in WA-210-P (current
WA-10-L Griffin Fields) in offshore Western Australia.
1992 ◆ Participated in an oil development project in Venezuela.
1993 ■ Acquired a working interest in JPDA03-12 (Bayu-Undan
gas condensate field), located in the Timor Sea Joint
Petroleum Development Area.

2002 ■ Acquired a working interest in the ACG Oil Fields in the
Republic of Azerbaijian.
2003 ◆ Production began at the Algeria Ohanet Gas Field.
2004 ■ Integrated with JODCO.
2004 ■ Listed in the First Section of the Tokyo Stock Exchange.
2005 ◆ Prospecting rights approved for the East China Sea.
Started new exploration ventures in Libya.
2005

The former INPEX CORPORATION and Teikoku Oilsigned a stock transfer agreement on establishing a
joint-holding company.

2006

INPEX Holdings Inc. established and listed in the First
Section of the Tokyo Stock Exchange.

1994 ◆ Built the Oyazawa Gas Plant to increase production
capacity in the Minami Nagaoka Gas Field.
1996 ■ Acquired a working interest in the Abu Al Bukhoosh
Block in the United Arab Emirates.
1997 ◆ Phase I of building the Shin Tokyo Line completed, withthe aim of increasing the transportation capacity of theTokyo Line.
1998 ■ Acquired a working interest in the Offshore North
Caspian Block in the Republic of Kazakhstan.
1998 ■ Acquired a working interest in the WA 285-P Ichthys
Block in offshore Western Australia.

2006 ◆ Shizuoka Line and Minamifuji Line completed.
2007 ◆ The Koshijihara Power Plant completed to begin
wholesaling of electricity.
2007 ■ Participated in the Joslyn Oil Sand Project in Canada
2008

INPEX Holdings Inc., The former INPEX CORPORATION
and Teikoku Oil merged to become the new INPEXCORPORATION with its head office in Akasaka, Tokyo.

1998 ■ Acquired a working interest in the Masela Block in
offshore Indonesia.

■ Diversifying geographically from Indonesia
into Australia and into the Middle East

■ Integration with JODCOJODCO, established in 1973, has been producing crude oil in five

Steady revenues from the Mahakam Block enabled the company togo after new business opportunities and diversify into developing
midsize oil and gas fields in Indonesia and Australia, growing out ofa single-project company.

fields in the ADMA Block in offshore Abu Dhabi, the United ArabEmirates. Among the five fields is the Upper Zakum Field, one of
the largest oil fields in the world, which strarted production in 1982.
In 2004, the former INPEX CORPORATION integrated JODCO asa wholly owned subsidiary to become more competitive in theinternational arena on a solid management foundation.
After the integration, theformer INPEX CORPORATION
went public on the First
Section of the Tokyo Stock
Exchange and has since
positioned itself as a leading
oil and gas E&P company in

Gas field in Australia

Mahakam Block

Zakum Field

Japan.

INPEX CORPORATION CSR Report 200813

Fulfilling Our Commitment to Providing a Stable Supply of Energy

Round-Table
Discussion

Taking full advantage of the synergistic benefits
that integration has brought to the new company

Providing a stable supply of energy is thecommitment we have made to society

talk to reporters, I realize that the public has high expectationof us and I feel good about it.

Q. Tell us about your job and what makes it worthwhile.

Tokita: I see. Ms. Ohta, as you’re in public relations, I

Sawada: Ever since I joined JODCO, I have been in sales ofassume you’re constantly in touch with a lot of people

crude oil produced in the Abu Dhabi oil fields—one of thethroughout the Group. Do you find any difference inlargest in the world. In 1995, we sold 330,000 barrels of oil aapproaches to their jobs among INPEX,Teiseki and JODCO?

day at peak time, which accounted for 8 percent of Japan’s

Ohta: Well, there are some differences in businessdaily demand for oil at the time. The sheer volume of thisprocesses and decision-making processes, and it took me abusiness led me to realize that we were doing a very

while to get used to them. But then again, it broadened myimportant job in securing a stable supply of energy, and I

perspective. Being able to see things from different

came to feel proud to be part of it. This sense of responsibility

perspectives is one of the greatest benefits that the merger

and pride is what has kept me going to this day.

provides for us. Don’t you think?

Manabe: I agree that fulfilling our social responsibility is

Manabe: Members of the unit I work for come from different

rewarding. The Masela Unit, for which I work, is responsiblegroup companies. But the career background doesn’t meanfor developing the Abadi Gas Field in Indonesia, one of themuch as long as we have something fundamental in common,world’s largest gas fields. Sure, being in a project of thisand that’s the commitment to contributing to society throughmagnitude is a pressure, but it is a rewarding pressure.

a stable supply of energy. In a sense, the upside of the

Sawada: Whatever unit or project we work in, we are goingmerger is that we now have a larger number of like-minded

after the common goal of providing a stable supply of energy,

people.

aren’t we?

Sawada: When JODCO became an INPEX Group company, I

Tokita: Exactly. I have been working in a

got involved in sales of crude oil produced byproject in the Ichthys Gas and Condensate

INPEX CORPORATION. This gave me

Field in Australia. It is operated and managed

greater opportunities to work in different

by an international consortium of INPEX andterritories and assignments, and to travel toTotal, a French oil major. This gives me a

project sites and markets around the world.

sense of responsibility toward ensuring a

I’m sure this merger will bring similar

stable energy supply, and also toward making

opportunities to quite a number of employees.

this large-scale international project work.

14

merger will benefit the energy supply in Japan. Every time I

I hope they will take full advantage of those

Regardless of where we come from, I think the Japanese

oppotunities to broaden their horizons.

team and French team can work it out as we are all in thisTode: Yes, you’re right. Having hands-on experiences in a

together.

number of different assignments changes the way you look at

Ohta: Being in the Corporate Communications Unit, it is myyour work duties. I had worked for another oil company

job to respond to inquiries from the media about how thisbefore I joined Teikoku Oil. In that company, I was in Sales,

INPEX CORPORATION CSR Report 2008

tasked with selling and importing a large amount of crude oil

Tode: One such approach is an endeavor to establish a

produced overseas just like Mr. Sawada does. My job was tonatural-gas value chain. The demand for natural gas insell everything that was produced to keep the production

Japan has doubled over the past few years, against therunning. In other words, making a push to secure stable

backdrop of a shift from oil to alternative energy sources. We

sales was my top priority.

intend to meet the ever-increasing demand by sourcing

Sawada: Stable supply means stable sales from a sales

natural gas from outside Japan as well as in Japan.

department perspective. Right?

Ohta: That would not have been possible without the merger

Tode: Exactly. When I started working forof Teikoku Oil, which has been engaged in the

Teikoku Oil, I realized “stable supply” had adomestic natural gas business, and INPEX,

completely different meaning. It was awhich has a vast amount of natural gas

collective effort to meet Japanese customers’

reserves overseas. It is a perfect example ofneeds. It was really an eye-opening

tangible integration benefits.

experience for me. Through this merger, all of

Manabe: The demand for natural gas has

us will learn to see things from a new andbeen growing both inside and outside Japan,
as it has a lower environmental load than oil.

different perspective. No matter where wecome from, we will have a good opportunity to broaden ourOn the other hand, natural gas is difficult to handle during its

perspective.

production and transportation. In particular, managing an

Kuroda: As everyone just said, providing a stable supply of

LNG development project is extremely challenging due to its

energy is what the Group is all about. It has gained an evenscope and complexity. If the Group brings a wealth ofdeeper and broader meaning from this merger. Our mission

expertise accumulated globally over the years to the project,

now includes not only responding to the changing demand for

we will be able to successfully establish a natural-gas valueenergy in Japan, but also meeting the growing demand forchain.

energy outside Japan, especially in developing countries. To

Tokita: I agree. The team in the Ichthys Project is comprised

do so, we have to become larger and more competitive. Iof engineers with different career backgrounds, just like thewould like everyone in the Group to know that this merger isMasela Unit for which Mr. Manabe works. Engineers havea means to that end, not an end in itself. Moreover, I would

brought with them extensive professional expertise to thelike to see all employees united in pursuit of fulfilling social

project, generating considerable synergistic effects.

responsibility to provide a stable supply of energy.

Kuroda: The management integration provides a lot of
benefits for the Group. A prime example is an improved

Taking advantage of the benefits that themerger provides

portfolio balance, which is made possible by mutuallycomplementary benefits in human resources, technologies
and geographical areas that you just talked about. If we can

Q. Tell us more about the benefits that you think the

expand our business territory through diversification on amerger provides.

global scale, we will have greater opportunities for new

Sawada: This management integration is so mutually

projects and new markets. I hope to see one benefit after

complementary that it will produce synergic effects acrossanother materialize.

the full spectrum of our operations. For instance, we can gaina global perspective rather than a traditional regional
perspective, just as INPEX has been working with JODCO tomarket a mix of crude oil produced in Abu Dhabi andIndonesia.

Naoki Kuroda

Takahiko Sawada

Kazuhito Tokita

Ryo Manabe

Yuriko Ohta

Shigeru Tode

President and CEO

Oil Marketing Unit

Browse Unit

Masela Unit

Corporate
Communications Unit

Corporate Strategy &Planning Unit

(Representative Director)(The departments were where participants worked in July 2008.)

INPEX CORPORATION CSR Report 200815

Fulfilling Our Commitment to Providing a Stable Supply of Energy
Round-Table
Discussion

Taking full advantage of the synergistic benefits that integration has brought to the new company

Providing a stable supply of energy while
promoting environmental stewardshipprojects. In the offshore Western Australia, where the Ichthys
Project is under way, nature is kept intact and it is home tovaluable species, such as whales and sea turtles. With this in

Q. How do you practice environmental stewardship as amind, we give the highest priority to preserving themember of an E&P company?

environment during the project. We have been performing an

Tode: When an E&P company increases its production toenvironmental impact assessment (EIA) of the area in

effectively meet growing demand for energy, it inevitably has

accordance with the guidelines established by the Australianan adverse side effect of increasing CO 2 emissions.

government.

However, I’d like to point out that supplying

Ohta: We made a press announcement thatnatural gas, which generates less CO 2 when

the local authorities recognized our EIA effort

burned than oil, helps reduce CO 2 emissions

in Ichthys.

in society at large.

Tokita: That’s right. Simply conducting an

Manabe: Let me remind you that with a

EIA analysis is no longer enough these days.

growing awareness of environment among the

Even the potential impact that an assessment

public, the day is over when we could say weitself may have on the natural environment issubject to heightened scrutiny. Therefore, wewere environmentally conscious simply
because we were in the natural gas business. This businessensured that our EIA analysis had a minimum impact on theis expected to take its fair share of responsibility to reduce

environment. For that, we received an environmental award

environmental loads. That is the growing demand of thefrom APPEA 1) . (See page. 27 for details)

times. I know this is not easy, but as production of natural

Tode: Let me tell you about our new project. In 2007, we

gas from gas fields normally runs for 20 or 30 years, it isbuilt a 50,000 kilowatt-capacity power plant powered byimportant to envision what society will be like in the future.

natural gas and condensate right next to the Koshijihara

Tode: You made a good point. We have been working on the

Plant to get into the power-generating business. (See thecarbon-capture-and-storage (CCS) technology in the Minami

boxed article on page. 17) It’s our first step toward gaining

Nagaoka Gas Field. It’s an approach to mitigating global

expertise in generating electricity. We expect this will allow

warming by capturing CO 2 and storing it deep underground.

us to have a fresh new idea for supplying energy with fewer(See p. 26 for details) It is our mission to keep acquiring newenvironmental loads.

technologies and expertise and use them to make our natural

Kuroda: When I met with the prime minister of Canada thegas business even more environmentallyother day, we talked about the definite needfriendly.

to ensure environmental protection when

Ohta: We received a lot of inquiries from thedeveloping resources. For a company

media about the CCS scheme. I think that wasdeveloping the natural resources that the

partly because of the G8 Hokkaido Toyako

Earth provides for us, pursuing business in

Summit held in July 2008. Anyway, it showedharmony with the environment is one of the

how interested the public is in environmental

most important social responsibilities weissues. Environmental stewardship will

have to fulfill. In addition to making ongoing

become one of the most important elements of corporate

efforts to reduce CO 2 emissions—which has become a global

value. Therefore, it is our job to make the media and theissue—we have to exercise environmental stewardship thatpublic better informed about what the Group is trying toaccommodates specific needs of each region in which we

accomplish in environmental preservation.

undertake our projects. To do so, everyone in the Group

Sawada: I agree that curbing our environmental loads in themust make a tangible and conscious effort to tackle thisproduction phase is important. However, not only ourpressing issue.

production but also development activities have an impact on1) APPEA
Australian Petroleum Production and Exploration Association

the environment. In our Abu Dhabi project, we were among
the first to begin studying an enhanced oil-recovery
technique that injects CO 2 captured from power plants into oil
reservoirs. If proved effective, this will reduce environmentalloads during development. We also have been proactive in

16

Building good relationships withall stakeholders

assisting the local government in environmental causes, such

Q. What is the most important consideration you have for

as a mangrove forestation project and a marine ecosystem

your stakeholders in your job?

restoration program (See p. 26 for details) which was

Ohta: As a PR specialist, my priority is to respond promptly

evolved from the mangroves.

and accurately to inquiries from the media. Another thing is

Tokita: As Mr. Sawada just said, caring about communities

that I keep abreast of what’s going on within and outside ofis extremely important when we carry out development

the Group by attending IR briefing sessions and exhibitions

INPEX CORPORATION CSR Report 2008

held for our shareholders and investors. This helps me
collect information that I can proactively disseminate to the

At the conclusion of the session

media.

Q. Before we end this session, could you share yourTokita: In the Ichthys Project, we recognize the value ofaspiration and determination for the future of the company?

maintaining dialogues with local communities. For instance,

Kuroda: To be effective in accomplishing our mission to

we hire local people and sponsor cultural events. Not all

provide a stable supply of energy, we need to retain the trust

stakeholders in the communities share common interestsof society that we have built up over the years. A good way

among them. Therefore, we try to treat all of them equally by

to do so is to have a 360-degree perspective in taking

engaging them in direct dialogue so that everyone has ameticulous care of environment, safety and community

better understanding of what we do.

development. That’s why we have been stepping up ourTode: That’s good. When we build pipelines or relocate

group-wide efforts to upgrade our HSE management system.

them, we have to care about people in the

The trust we have won from society is ourcommunities that the pipelines go through.

valuable asset. To ensure that this asset will

They don’t necessarily benefit directly fromstay with us for years to come, we need tothe pipelines. That’s why we need to keep

keep raising the bar for our HSE

briefing them on the social aspect of a project

performance. In addition, we need to build

beforehand until they come to understand why

the business foundation that is solid enoughit has to be done.

to withstand the challenges of changing

Sawada: It’s important to understand where

economic environment and to sustain our

stakeholders stand. And it’s equally important to find what

ongoing efforts to achieve our mission. This is exactly what

they are really looking for, since what interests people thewe are trying to accomplish from this merger. We have a goal

most varies from region to region. For instance,of raising our daily production output to 0.8-1.0 million

diesel-powered cars outsell gasoline-powered cars inbarrels per day during the five years from 2015 to 2020, from

Europe, which is pushing demand for diesel oil. In thethe current 0.42 million barrels per day. If the projects in

European oil market, expectation is high for us, as we have a

Ichthys and Masela go as planned, that will take us to theworking interest in the ACG Oil Field in Azerbaijan, which

production level of 0.7 million barrels per day, but that is still

produces a relatively high yield of low-sulfur diesel oil. Thisnot enough. We need to do more. I am quite confident thatis just an example, but we need to provide information that

we can achieve this goal on a path to sustainable growthaccommodates specific needs of a region.

while helping society with its sustainable development, if

Manabe: In the Masela Project, we were drilling appraisal

everyone in the company works together toward that goal.

wells in the gas field for the past 12 months. It was extremely
challenging from the safety perspective. Our own internalsafety requirements and those established by the local
government were both demanding, but we were relieved
when we managed to meet them throughout the work.

Koshijihara Power Plant becomes
operational

Kuroda: Today, we are under constant pressure from the

The Koshijihara Power Plant, under construction since July 2004

rise of resource nationalism and intense competition in thenext to the Koshijihara Plant in the Minami Nagaoka Gas Field, wasindustry. In order for us to remain on the growth path in thiscompleted and began commercial operation on May 7, 2008. The

challenging business environment, building good

power plant has embodied our new business model thereby to sellrelationships with all of our stakeholders, such as

electricity̶secondary energy̶generated from primary energy

shareholders, resource-producing countries, business
partners, customers and communities in which we operate, issources such as oil and natural gas, whose development, production
and sales have been our core business for years. Generating andselling electricity represents a step toward realizing the Group s visionvital. As everyone just said, listen carefully to what people inof becoming an integrated energy

the communities have to say, identify their needs, andcompany. The power plant supplies

respond to them. What is expected of an E&P company today

all electricity it generates to Poweris not only bringing economic benefit to communities throughProducers and Suppliers, which

oil and gas development but also supporting their social
development in education, culture and infrastructure. I don’tmean to say we have to do it all by ourselves, but taking
community needs seriously is the good way to start toward

then distribute it to oﬃce buildings
and department stores in the Tokyoarea.
Koshijihara Power Plant

building a lasting relationship with them.

INPEX CORPORATION CSR Report 200817

Going Boldly Forward withHSE Initiatives
INPEX CORPORATION carries out E&P operations around the globe.
Conducting E&P business imposes us wide-ranging responsibilities ofmaintaining harmony with communities and natural environments, as wellas preventing incidents, while working toward the goal of ensuring astable supply of energy.
To fulfill the responsibilities, we have integrated
environmental-preservation activities and occupational safety and healthactivities into our own HSE (Health, Safety and Environment) Management
System—a guiding framework for undertaking a series of HSE initiatives.

18

INPEX CORPORATION CSR Report 2008

A Message from Director

The INPEX Group gives top priority to
implementing a series of HSE initiatives throughout
the Group with the goal of fulfilling our mission
Masatoshi Sugioka
Representative Director, HSE
The Group, based on a solid core E&P business for oil and naturalgas, has a strategic vision of becoming a more diversified E&P
company with a much higher production volume by late 2010. To
realize this vision, we need to go after not only volume, but also toenhance the quality of our business. Maintaining harmony with
communities and the environment, and preventing incidents arepressing issues we must address.
As a first step toward conducting occupational safety and healthactivities as well as environmental preservation activities under aconsistent management system, we instituted the group-wide HSE
Policy in June 2006, and then established a Corporate HSE

Health, Safety and Environment Policyof the INPEX GroupINPEX Group is a global, independent energy company andour vision is to provide a stable and efficient supply of energy
to our customers.
We recognize our responsibility for sustainable
development and, in this regard, we aim to protect the healthand safety of all those associated with our business activities
and to minimize adverse impacts on the environment.

Committee, tasked with implementing the HSE Policy, in October
2007. The HSE Committee has since formulated Corporate
Guidelines for HSE Management System and other procedures,
HSE Objectives, and HSE programs for 2008, all of which aredesigned to ensure that our group-wide HSE activities are carriedout in a coherent and consistent manner. When establishing theprocedures, we referred to the standards developed by OHSAS1),
ISO and OGP2) to ensure that our HSE efforts and performance areon par with international standards.
While we were working hard to step up our HSE initiatives, afatal incident occurred in July 2008 at a tunnel construction
site—part of our natural-gas pipeline construction project inJapan—being carried out by one of our contractors. We have taken
this tragic incident seriously and will do everything we can, including
asking our contractors to upgrade their HSE management system,
to prevent a recurrence of such an incident.
To continue to be effective in accomplishing our mission toprovide a stable supply of energy, we need to retain the trust ofsociety that we have built up over the years. It takes many years tobuild public trust but, once it is lost, it is very difficult for us to restore
this trust. As such, the trust that the society has placed in us is anasset. To ensure that this valuable asset will stay with us for years
to come, the Group is fully committed to stepping up its HSE
activities.
1) OHSAS
Occupational Health and Safety Advisory Services. An organization that assists public andprivate organizations with identifying and controlling risks associated with occupational healthand safety.
2) OGPInternational Association of Oil & Gas Producers. The Association helps member companies
achieve continuous improvements in safety, health and environmental performance. INPEX
as the first Japanese company joined OGP in October 2007.

To accomplish this, we will:●Comply with all applicable HSE laws and regulations, andapply our standards where laws and regulations do not exist
or are considered insufficient.
●Implement and maintain HSE management systems, andperform regular audits of legal compliance and progress of
our HSE activities to achieve continuous improvement in our
HSE performance.
●Identify and assess health and safety hazards and eliminate

or, if not possible, reduce risks to as low as reasonably
practicable to prevent incidents.
●Conduct environmental assessments and promote efficientenergy consumption to reduce adverse environmental
impacts.
●Maintain and regularly test emergency plans to ensure aquick and effective response in the event of emergencies.
●Provide resources that will enable our employees to meet

HSE objectives and targets.
●Provide training in HSE activities and safe driving to ensure

all employees are aware of their responsibilities andaccountabilities in these areas.
●Require contractors to manage HSE in accordance with thisPolicy, and to achieve agreed HSE targets.
●Communicate openly on HSE activities with stakeholders.

INPEX CORPORATION CSR Report 200819

HSE Management System

In order to fulfill our mission, we have a unified management
system for occupational health and safety and environmental
conservation initiatives in place
HSE Management System
Overview of HSE Management System
A stable supply of energy can be disrupted for any number ofand the prevention of such incidents to be inseparable from eachreasons. Of most concern to us is the risk of incidents that not only

other. With the aim of improving health (H), safety (S) and the

could interrupt the energy supply, but also could cause

environment (E), we operate our own HSE Management System,

environmental pollution, jeopardizing our business continuity.

which enables us to continuously enhance our HSE performance.

In light of this, the Group considers environmental conservation

Implementation Framework for HSE Management System
In October 2007, in an effort to promote systematic group-wide HSE

In addition, each office in Japan has a Safety Committee chaired

initiatives, we established the Corporate HSE Committee, whichby an HSE Managing Supervisor, which comprises HSE Field

was tasked with formulating guidelines and procedures, andSupervisors (Safety Administrators) and safety personnel. The

objectives regarding HSE. The implementation framework for HSE

Safety Committee at each office is responsible for setting HSE

Management System has been taking shape to achieve HSE

objectives for the office, devising an implementation plan, andobjectives.

monitoring and reviewing progress made toward these objectives,

Under the Group’s HSE Management System, a business unitthat is in charge of an operator1) project is called an Operational
Organization. Each Operational Organization has its own HSE

based on the decisions made by the Safety Steering Committee.
1) Operator
A company that takes primary responsibility for operations for exploration, development andproduction in a block.

Committee, which is responsible for promoting HSE activities inaccordance with the HSE Policy for the project that the Organization

Diagram of HSE Management System Implementation Framework

undertakes inside and outside Japan.
Corporate

Since 2008, we have started to take another step toward
establishing a management system in which each Operational

Naoki Kuroda（President）

Organization collaborates with the Head Office to ensure the healthand safety of workers engaged in the projects in the event of an

Masatoshi Sugioka（Director for HSE）

emergency.
In May 2008, we held our 1st Annual HSE Meeting, in which

Corporate HSE Committee

senior management from the Head Office and heads of Operational
Organizations met to develop a greater awareness and knowledgeof HSE management, and to ensure that HSE objectives for 2008

Operational
Organization

Operational
Organization

Operational
Organization

Operational
Organization

Operational
Organization
Representative

Operational
Organization
Representative

Operational
Organization
Representative

Operational
Organization
Representative

HSE
Committee

HSE
Committee

HSE
Committee

HSE
Committee

were understood throughout all Organizations. Representatives of
all Operational Organizations in Japan, Australia, Egypt, Indonesia,
Libya and Venezuela attended the meeting.
In Japan, the head of Domestic Project Division and HSE
Managing Supervisors (Safety Officers) convene a Safety Steering
Committee to set specific HSE objectives, and monitor and review
their achievement.

20

INPEX CORPORATION CSR Report 2008

HSE Auditing
The Domestic Project Division, an Operational Organization forresults.

domestic business, has been conducting first-party audits2) carriedOverseas Operational Organizations conduct second-partyout by an audit team comprising members of the Division and Head

audits of important contract work, such as drilling. Auditors of an

Office, as well as third-party audits2) for renewal of ISO14001

Operational Organization audit the efforts of contractors with regard

certification since 2004. The Division organizes an audit team forto their HSE activities, the status of their HSE Management System,

each office to perform frequent audits. The audit team is tasked withand their planned and actual HSE performance.

monitoring compliance with laws, regulations and internal rules, andWe have been making progress in training internal auditors

the execution of HSE activities. If the audit team finds any

responsible for conducting first-party audits2).

incompliance or issues, it instructs persons in charge to take2) A first-party audit is an internal audit. A second-party audit is conducted by another, but
related organization. A third-party audit is conducted by an independent, outside auditor.

corrective action, monitors their implementation, and reviews the

TTP’s Efforts to Obtain Eco Action 21 Certification
In 2005, a leak of crude gasoline (heavy naphtha) occurred at

produced an environmental activity report

the Kubiki Refinery in Joetsu City, Niigata Prefecture, at theto verify and evaluate its performance.

Teiseki Topping Plant (TTP), an INPEX Group company.

When the fourth stage wasThis incident prompted TTP to begin efforts to obtain Ecocompleted, TTP was inspected and, in

Action 21 certification of the Kubiki Oil Refinery and the Naoetsu

June 2008, it obtained Eco Action 21

Oil Terminal in January 2007, in vigorous pursuit ofcertification. The company is continuingenvironmentally friendly business practices.

its efforts in preparation for the renewal

Eco Action 21 is a program for the certification andinspections conducted every two years.

registration of environmental management systems, based on

In addition, TTP has been distributing

guidelines formulated by Japan’s Ministry of the Environment.

“the TTP Environmental Newsletter” to all

Small to midsize businesses find the program relatively easy toemployees since February 2007. The newsletter, which is also

tackle, as it is not costly or time-consuming. The guidelines areavailable via an intranet, discusses activities and their progress

Eco Action 21 certificate

divided into four parts, and TTP went through them as specified.

that the company has been

In the first stage, TTP formulated an environmental education

making in its Eco Action 21

plan for its employees. In the second stage it implemented theprogram, and has proved

education plan, and developed an environmental policy, goals

itself an effective tool forand action plans, based on theraising employees’ sense

findings from the assessmentof participation in theperformed of its environmental

program and for sharing

loads and environmental

environment-related
TTP Environmental
Newsletter

initiatives. In the third stage,

information.

the company implemented its
environmental action plans,
and finally in the forth stage, it

On-site workshop

INPEX CORPORATION CSR Report 200821

Environmental Impacts of Business Activities

Business Processes and Environmental Impacts of the INPEX GroupThe INPEX Group monitors how business activities in each process impact the natural environment as a basis for its efforts to reduce

Exploration and Development
INPUT TOTAL

INPUT
2006
1,559TJ

4,070TJ

Water

736,000KL

1,817,413KL

Water

76millionNm3

63millionNm3

70,000KL

43,081KL

Purchased gas
Purchased raw materials

INPUT
2006

2007

Fuel

Production and

2007

138TJ

1,087TJ

Fuel

57,000KL

508,777KL

Water

Purchased gas

00Purchased raw materials

04,581KL

Fuel

Purchased gas
Purchased raw materials

Business Activities and Their
Environmental Impacts during
2007
Increased production to meet the growing
demand for natural gas has raised the
Seismic
surveyGroup’s environmental impacts for two

Gas-processing facility at the Koshijihara Plant

consecutive fiscal years since 2006. To
improve this trend, we will implement allplanned countermeasures and consider
taking further additional steps.
Exploratory well

In 2007, the Koshijihara Power Plant
became operational and its environmental
performance data were added to the Group’s
total. We also began to collect HSE datafrom our overseas operator projects. The
INPUT and OUTPUT data for 2007 shown on
this page are the sum of those from ourdomestic operations and from overseas
projects.

We search for underground structures that
may contain oil or natural gas, and drill
exploratory wells in promising locations. If
the existence of sufficient reserves isconfirmed, we develop oil or gas fields bydrilling production wells, constructing
production facilities, and laying pipelines.

Pumping units at the Yabase Oil Field

Teikoku Oil Co., Ltd.
INPEX Browse, Ltd.
INPEX Masela, Ltd.
INPEX Libya, Ltd.
Teikoku Oil Libya U.K. Ltd.
Platform at the Offshore Iwaki Gas Field

OUTPUT TOTALOUTPUT
2006

2007

271,700ton-CO2 610,601ton-CO2

2007

9,789ton-CO2

84,274ton-CO2

PRTR substances

33ton

37ton

PRTR substances

2ton

0ton

Wastewater discharged
into public water bodies

506,940KL

649,703KL

Wastewater discharged
into public water bodies

330KL

20,475KL

Wastewater discharged
into public water bodies

Disposed waste

21,512ton

43,838ton

Disposed waste

19,776ton

41,062ton

Disposed waste

GHGs

GHGs

GHGs
PRTR substances

Capital Investment for Reducing Environmental
Impacts

Co., Ltd, an INPEX Group company, to install self-contained

In 2007, the Group spent a total of 70 million yen in capitaldischarged into the air—on two of its 42 gas-powered governors

investment to reduce adverse environmental impacts in Japan.

as part of its conversion project being undertaken since 2002.

Of the 70 million yen, 5 million yen was spent by Teiseki Pipeline

22

OUTPUT2006

INPEX CORPORATION CSR Report 2008

control valves—designed to prevent natural gas from being

Teiseki Topping Plant Co., Ltd, another INPEX Groupadverse environmental impacts. For details of these efforts, refer to “Helping to Prevent Global Warming,” “Caring about
Biodiversity,” “Curbing Chemical Emissions,” and “Reducing Waste and Preventing Soil Contamination” on the pages that follow.

Power Generation

Refining and Transportation

Consumption

INPUT
2006

2007

1,277TJ

2,670TJ

Fuel

342,000KL

977,505KL

Water

76millionNm3

63millionNm3

0

0

2006

313TJ

338,000KL

331,132KL

0070,000KL

38,500KL

Purchased gas
Purchased raw materials

Utilizing the natural gas andcondensate we produce

2007

144TJ

Utilizing the natural gas
we produce

Naoetsu Oil
Terminal

Natural gas cogeneration system

Petroleum products and natural gas are
sold to and utilized by factories, gas
stations, power plants, utility gas
companies, hospitals, offices and homes.
The electricity we generate is wholesaled
to PPSs1).

The Koshijihara Power Plant

When crude oil and natural gas are
extracted from underground at ouroil and gas fields, impurities suchas moisture and carbon dioxide areremoved from them to make themready for transportation by tanker
trucks or pipelines. Electricity is
generated at a power plant
powered by natural gas andcondensate—hydrocarbon liquids.
Teikoku Oil Co., Ltd.
Koshijihara Power Plant added
Offshore Iwaki Petroleum Co., Ltd.
Gas Guarico, S.A.
West Bakr Petroleum Co.

Natural gas pipeline operated by
Teiseki Pipeline

Crude oil is transported to a refinery, where
it is refined into petroleum products suchas gasoline and fuel oil for sale. Natural
gas is transported directly from plants tocustomers via pipelines. The Naruto Gas
Field in Chiba Prefecture also processes
and sells iodine—a byproduct of natural
gas.
Teiseki Topping Plant Co., Ltd.
Teiseki Pipeline Co., Ltd.

OUTPUT
2006

2007

239,835ton-CO2

500,002ton-CO2

GHGs

2006

2007

22,076ton-CO2

26,324ton-CO2

16ton

23ton

PRTR substances

15ton

14ton

75,075KL

140,757KL

Wastewater discharged
into public water bodies

431,535KL

488,471KL

1,183ton

2,219ton

553ton557ton

Disposed waste

1) PPSPower Producer and Supplier. A non-utility privatecompany that sells electricity.

Sales
2006
Natural gas

2007

1,164millionNm3 1,712.7millionNm3

Crude oil (amount sold)

12,000KL

177,900KL

Petroleum products

654,000KL

608,400KL

LPG

12,000ton

11,500ton

Iodine506ton490ton●PRTR substance data in OUTPUT came from ourdomestic operations only.
●INPUT/OUTPUT data for 2006 came from ourdomestic operations only.

company, spent 15 million yen to install an internal floating roof

wastewater discharged from electrocleaners for kerosene, whichon one of its fixed-roof oil tanks to eliminate a potential gaseousbrought the company’s total spending to 65 million yen.

zone above the stored oil in accordance with the Group’s VOC
emission reduction plan. The company spent an additional 50
million yen to install an effluent-treatment facility that purifies

INPEX CORPORATION CSR Report 200823

Preserving the Environment

Helping to Prevent Global Warming 1

Cutting greenhouse gas emissions while increasing production ofnatural gas to meet rising demand
Goal/Performance/
Assessment（Domestic Projects）

Limiting GHG Emissions

2007 Goal

To reduce greenhouse gas (GHG) emissions per unit of production to below the 2006 level by setting numerical targets for each
office to control GHG emissions on both an absolute and per-unit basis.

2007 Performance

The Group’s total GHG emissions increased by 60% to 43.5 tons from the previous year. This was because the Koshijihara Power
Plant started its operation became operational during that year, and total production volume increased. Total per-unit emissions were0.227 kg-CO2/Nm3 (5.55 kg-CO2/GJ), a 16% increase from 0.196 kg-CO2/Nm3 (4.79 kg-CO2/GJ) for 2006.
Per-unit emissions as defined by the medium- to long-term Voluntary Action Plan developed by the Japan Petroleum Development
Association (JPDA) amounted to 1.78 kg-CO2/GJ, 0.37kg-CO2/GJ reduction from 2006.

Assessment

We were unable to meet the goal of reducing per-unit GHG emissions to below the 2006 level, due to the fact that the startup of the
Koshijihara Power Plant and the rising demand for natural gas increased the volume of natural gas processing and energy
consumption, and therefore raised the Group’s per-unit emissions by 16% over 2006.
On the other hand, per-unit emissions as defined by the medium- to long-term Voluntary Action Plan developed by JPDA,
decreased by 17% from 2006. This was achieved by closing old gas fields to limit GHG emissions from energy use and thedispersion of natural gas.
To reduce GHG emissions per unit of production to below the 2007 level and, in particular, to develop measures to prevent
dispersion-induced (non-combustion) emissions of GHG on an ongoing basis.

2008 Goal

Nippon Keidanren Voluntary Action Plan on the Environment-Section on Global Warming Measures
The Group participates in the Nippon Keidanren Voluntary Action

below the level of 1990.”

Plan on the Environment—Section on Global Warming Measures,

1) GHG
Greenhouse gas. A gas that traps heat in the atmosphere, including CO2, methane andchlorofluorocarbons. The Group emits primarily CO2 and methane through its operations.
2) Per unit of production
GHG emissions divided by oil and natural gas production volume.

through JPDA. JPDA has set the target of “reducing the averageGHG1) emissions per unit of production2) at oil and natural gas
development facilities in Japan from 2008 through 2012 by 20%

GHG Emissions
When natural gas burns, it emits less CO2 per unit of heat output

dispersion of natural gas for operational reasons, and 64,000 tons

than other fuels—25% less than oil and 40% less than coal, whichof CO2 from the Koshijihara Power Plant, which became operational

makes it environmentally friendly and explains the rapidly risingin 2007. As the demand for natural gas has grown in recent years,

demand. While this trend will help lower GHG emissions at the

GHG emissions from each of these sources have been rising. The

consumption stage, it will inevitably result in higher GHG emissions

Domestic Operating Division has been tightly controlling theat the production stage.

quantity of GHG emissions per unit of production, which has been

Sources of GHG emissions for 2007 in our domestic operations
are 120,000 tons of CO2 from energy use, 210,000 tons of CO2

one of its priority policies since 2004, in order to reduce GHG
emissions.

removal from natural gas, 41,000 tons of CO2 associated with theTrend in GHG Emissions by Sources(Domestic Projects)

Trend in per-unit GHG Emissions(Domestic Projects)■ Energy use ■CO2 removal■Natural gas emissions ■ Generation of electricity■Energy use ■CO2 removal■ Natural gas emissions ■ Generation of electricity（×1,000 of tons of CO2）

（kg-CO2/Nm3）

400

64

300

41
210

200
100
0

24

29
69

43
74

45
76

70

59

73

2000

2001

2002

59
82

26
92

29
104

67

73

83

2003

2004

2005

INPEX CORPORATION CSR Report 2008

0.25

0.033

0.15

36
137

0.033

0.20
0.076

0.046
0.079

0.048

0.060

0.025
0.091

0.026
0.099

0.081

0.082

0.025
0.087

0.078

0.067

0.069

0.073

0.071

2002

2003

2004

2005

2006

0.022
0.110

0.10
99

2006

120

2007（Year）

0.05
0

0.078

2000

0.063

2001

0.063

2007
（Year）

GHG Emission Reduction Initiatives
Reducing Emissions from Oil and Gas Business●CO2 emissions from energy use

underground aquifer or into a depleted oil or gas field; and an

At all our oil- and gas-processing plants and field offices, we use theenhanced oil-recovery method, by which CO2 is injected into
（EOR）

environmentally friendly natural gas we produce as fuel as far asan oil field to improve crude oil recovery.

reasonably possible. Greater use of energy-saving systems
powered by natural gas, and the closure of old oil and gas fields●Natural gas emissions for operational reasons

have helped us improve energy efficiency and reduce CO2

In the oil and natural gas business, when relocating pipelines, whileemissions.

maintaining and restoring the artesian capacity of oil and gas wellsof reduced pressure, or when conducting routine inspections ofequipment, there is no choice but to discharge natural gas into the●CO2 removal during natural gas processing

atmosphere. As the greenhouse effect of methane—the principal

At the Minami Nagaoka Gas Field in Nagaoka City, Niigata
Prefecture—our major gas production base in Japan—CO2 thatmakes up approximately 6% of natural gas is separated andremoved by a process using an amine solution and then dispersed
into the atmosphere.
The oil and natural gas industry has been studying the feasibilityof a method called carbon capture and storage (CCS)（seecomponent of natural gas—is 21 times more than that of CO2, we
do everything we can to recover as much of this dispersed natural
gas as possible.
In addition, we are working to reduce GHG emissions by meansof lowering pipeline pressure before construction begins, and ofburning natural gas to convert it into CO2 before releasing it into theatmosphere.

Page.26）, by which separated CO2 is injected into a deep

Energy Use for Business Activities (Domestic Projects)

Own natural gas/refinery gas
Gas oil and other liquid fuels
Purchased electricity
Purchased city gas
LPG

VolumeHeat value
VolumeHeat value
VolumeHeat value
VolumeHeat value
VolumeHeat value

1,000s of Nm3
TJ
KL
TJ
1,000s of kWh
TJ
1,000s of Nm3
TJ
tons
TJ

2001
18,399
759
3,126
120
34,175
123
ー
ー
ー
ー

2002
18,457
762
6,020
230
50,200
181
ー
ー
0
0

2003
19,415802
3,917"
150
41,263
149
268
11
1
0

2004
24,357
1,003
2,818
107
38,456
138
241
10
1
0

2005
26,179
1,078
3,708
141
40,808
147
251
10
2
0

2006
30,360
1,248
4,075
155
40,106
144
279
11
1
0

2007
42,8001,911
27,382987
40,949
147
274
11
1
0
（TJ:Tera joule）

Cargo Transportation Reportin
Under the provisions of Japan’s amended Energy Conservation

The total quantity of cargoes transported by the Group inside

Law, enacted in April 2006, owners of cargoes transported inJapan in 2007 was approximately 220 million ton-kilometers. As

volumes exceeding 30 million ton-kilometers per year are obligated

crude oil and petroleum products transported by sea accounted forto report the volume of their transported cargoes, to formulate

around 90% of the volume, we used large tankers for pursuingenergy conservation plans, and to report quantities of energy

greater efficiency.

consumed.

Developing Environmentally Friendly Next-Generation Fuels
As the energy industry is under mounting pressure to address

plant is scheduled to become

environmental issues, the Company is gearing up for theoperational by the end of Marchdevelopment of next-generation fuels that have a lower

2009 and will run for two years

environmental load than coal and oil.

to collect research data.

One is gas-to-liquid (GTL) technology to convert natural gas

We are also working on

into diesel oil and kerosene. In September 2007, construction of

DME, a new alternative clean

a demonstration plant began at the Nippon GTL Technology

fuel made from natural gas,

Research Association’s demonstration center in Niigata City. The

which does not generate toxic substances.

GTL demonstration plant under construction

INPEX CORPORATION CSR Report 200825

Preserving the Environment

Helping to Prevent Global Warming 2

CCS, a Promising Technology to Combat Global Warming
Under growing pressure to reduce emissions of CO2 that may

Gas Field. The Group also provides technical expertise gained

cause global warming, researchers around the world have beenfrom experiences in underground storage of natural gas andworking on CCS technology to capture CO2 emitted from aenhanced oil recovery（EOR）techniques1). The injection of CO2

source, and inject it into a deep underground aquifer. In 2006,

into the aquifer at the test site was completed in January 2005

the IPCC（Intergovernmental Panel on Climate Change）

and we have been closely monitoring its behavior even after theendorsed this technology as an effective means to reduce CO2.

RITE project was completed at the end of 2007.

In May 2007, then Prime Minister Shinzo Abe proposed along-term goal of reducing GHG by 50% from the current level on1) Enhanced oil recovery technique
A generic term given to the technologies that apply to mature oil fields to increase theirrecovery of oil.

a global basis by 2050. To achieve this goal, the Ministry of
Economy, Trade and Industry unveiled the “CoolConceptual diagram of geological storage ofcarbon dioxide shown in section

Earth-Innovative Energy Technology Program” in March 2008, in
which CCS was listed among 21 innovative energy technologies.
Furthermore, at the G8 Hokkaido Toyako Summit Meeting heldin July 2008, the International Energy Agency and the WorldBank reported on CCS technology.
The Group has been working with the Research Institute of

Injection wellObservation well
Ground surface

CO2

Observation well
CO2

Cap rock
150 meters thick

1,100 meters
below groundReservoir
60 meters thick

Innovative Technology for the Earth (RITE) to test the CCS
12 meters thicktechnology at our Iwanohara Site located in the Minami Nagaoka

Building a Sustainable Carbon-Cycle System Using Underground Microbes
The Group has been working to apply CCS to anothertechnology that converts residual crude oil left in the reservoir ofa depleted oil field into methane, using CO2 injectedunderground for CCS, and microbes that live underground. We
have conducted experiments under pressure and temperature
conditions equivalent to those underground and succeeded incontinuously generating methane.
If we can successfully establish this technology, it will be a

Methane-producing bacteria collectedfrom the Yabase Oil Field

big step toward building a carbon-cycle system in which residual

Culture experiment vessels undersimulated underground pressure andtemperature conditions

oil in depleted oil fields and injected CO2 will turn intomethane—a primary component of natural gas.

Mangrove Forestation Project in Abu Dhabi

26

Since 1999, Japan Oil Development Co., Ltd. (JODCO), an

forestation and fish farming;

INPEX Group company, has been engaged in a joint mangrove

mangrove leaves that fall into

forestation project with the Environment Agency Abu Dhabi

the water decompose into(EAD) in Abu Dhabi City and on Zirku Island, offshore Abu

organic matter, which in turn

Dhabi. This project was originally intended to green the arid

enriches the living environment

coastal areas through the planting of mangroves. It has evolved

for fish, while biological waste

into a marine ecosystem restoration program called Agro-Fishfrom fish fertilizes the

Project conducted on Ariyam Island, which combines mangrove

mangroves.

INPEX CORPORATION CSR Report 2008

Agro-Fish Project on Ariyam Island

Preserving the Environment

Caring about Biodiversity

Protecting ecosystems to ensure coexistence with the naturalenvironment around project sites
Ecological Conservation Initiatives
Before we start to develop project sites or to construct pipelines, we

activities include those for protecting local environments and for

conduct environmental impact assessments of those projects toraising environmental awareness in local communities as well.

ensure that ecosystems of where we operate are preserved. Our

Ecological Approaches in the Shin Oumi Pipeline Construction
We take ecological approaches in pipeline construction projects.

water-quality survey. During a survey of the natural habitat of rare

For instance, a consulting firm performs an environmental impact

animals and plants in theassessment on our behalf before commencing construction. The

surrounding area, we spotted afirm carries out on-site monitoring during construction and conducts

golden eagle. Under thea post-construction assessment. In the tunnel construction

guidance of the Wildlife

conducted in March 2007 as part of the Shin Oumi Line

Protection Committee of Niigata

Construction Project, we carried out an ecological survey into thePrefecture, we erectedflora, insects and birds of prey near the entrance to the tunnel. We

noise-blocking walls near the

performed stringent quality management of the water spilling out of

entrance to the tunnel under

the tunnel in accordance with our own voluntary guidelines based

construction.

Surveying birds of preyon the Water Pollution Prevention Law, and conducted an extensive

Biodiversity Protection at the Kashagan Oil Field
INPEX North Caspian Sea, Ltd., an INPEX Group company, hasbeen working as a member of an international consortium in the
Kashagan Oil Field Development, discovered in the North CaspianSea PSA contract Area in Kazakhstan.
In this project, co-ventures formulate an action plan based on
the country’s biodiversity strategy, monitor the breeding habits ofseals and the habits of sturgeon in the Ural River through ID tags
attached to them, and are making a regular survey of wild birds.

Conservation of sturgeon

Survey on breeding pattern of seals

The project also assists the country’s biodiversity experts andinternational institutions with their surveys.

APPEA Environment Award
INPEX Browse, Ltd., an INPEX Group company, received thesurvey had on the environment.

2007 Environment Award (Category B: Exploration) from theWhen conducting a ground and soil survey on the Maret

Australian Petroleum Production & Exploration Association

Islands, offshore of Western Australia—a proposed site for a(APPEA) at its annual conference in Perth, Western Australia, innatural gas location plant, the company made the drilling

April 2008. This was the third APPEA award that the company

equipment small and light enough to be transported by areceived, following the Safety Award in 2003 and 2004.

helicopter directly to the drilling site, minimizing the land space

The Environment Award was given to the company for workin minimizing the impact of drilling during a ground and soil

needed for drilling. As a result, drilling conducted on the islands
took up less than 1 percent of the land space normally needed.

INPEX CORPORATION CSR Report 200827

Preserving the Environment

Limiting Chemical Emissions

We control environmentally harmful substances andlimit their emissions in accordance with our voluntary guidelines
and action plans
Goal/Performance/
Assessment（Domestic Projects）

Limiting emissions of PRTR substances（Domestic Projects）

Limiting emissions of VOCs
（Domestic Projects）

2007 Goal

To monitor and control the emissions of PRTR substance in theenvironment.

To implement VOC-control measures by defining specifictargets for each operation site, with the aim of reducing thetotal amount of emitted VOCs to below 2006 level.

2007 Performance

The emitted amount of benzene during 2007 increased by 5.3 tons
from 2006, and that of Toluene and Xylene also increased slightly
from 2006. The quality of benzene in the environment did not
improve, except for it, the improvement of the quality of PRTR
substance in the environment achieved the goal.

The goal was not achieved as total amount of VOCs emitted
in 2007 was 807 tons, with an increase of 96 tons from 2006.

Assessment

The emissions of benzene during 2007 increased due to that fact that:
operations of VOC removal equipment were temporarily suspended
during an upgrade of the plant; the volume of natural gas shipped bytank trucks and of emissions of natural gas stored undergroundincreased due to increased production; and natural gas was released
as a result of the Chuetsu-oki Earthquake in Niigata prefecture.

Of 807 tons of VOC emissions in 2007, 135 tons were ofunavoidable dispersion of natural gas caused by the
Chuetsu-oki Earthquake in Niigata prefecture. Excludingthese dispersion, VOC emissions in 2007 was 671 tons,
smaller than in 2006 level. Reduction of VOC emissions is
included in a priority policy for 2008.

（As our control measures proved effective for PRTR substances
except for benzene, we will focus on reducing the emissions ofbenzene and make it part of priority policy for reducing VOC
emissions.）

To implement VOC-control measures by defining specifictargets for each operation site, with the aim of reducing thetotal amount of VOCs emitted to below 2007 level.

2008 Goal

Measures to Limit Emissions into the Atmosphere
The Company has verified through regular analyses that exhaust

Japan’s Air Pollution Control Law, meets the legal emission

gas from our facilities that generate smoke, as designated bystandards.

Emissions of Exhaust Gas Measurement Results in 2007 (average values)
Sources

Item

Effluent standard

Oyazawa Plant

Koshijihara Plant

Gas turbines
for generators
Gas turbines forgas compression
Diesel for
generators

Soot and dust
NOx
Soot and dust
NOx
Soot and dust
NOx
Soot and dust
NOx
Soot and dust
NOx

＜ 0.05 g/Nm3
ー＜ 70〜90 ppm
ー<0.01 g/Nm3
24 ppm<0.01 g/Nm3
39 ppmKoshijihara
Power Plant<0.01 g/Nm3
29 ppm

＜ 0.05 g/Nm3ー＜ 90 ppm
ー

NA

NA

NA

NA

＜ 0.1 g/Nm3
ー＜ 950 ppm
ー

NA

NA

NA

NA

<0.01 g/Nm3<0.01 g/Nm3<0.01 g/Nm3

47 ppm35 ppm32 ppmNA

NA

NA<0.01 g/Nm3
81 ppm<0.01 g/Nm3
64 ppmBoilers
Heating furnaces＜ 0.1 g/Nm3ー＜ 150 ppm
ー＜ 0.15 g/Nm3ー＜ 180 ppm
ーKubiki Refinery

Platform<0.01 g/Nm3
50 ppm<0.01 g/Nm3
49 ppm<0.01 g/Nm3
580 ppm

NA1)

NA
NA

1) Not applicable

Limiting Emissions of VOCs
Japan’s amended Air Pollution Control Law, which became effective

VOC Emissions（Domestic Projects）

in May 2004, states the government’s policy to reduce emissions of■ Tanks ■Trucks loading/unloading ■Reboiler vents ■Emitted gas ■CO2 vents（Emissions in tons）

VOC to 30% below the 2000 level by 2010. In response to this

1,200

policy, in November 2005, the Japan Natural Gas Association, of
which the Company is a member, formulated a voluntary action plan
to set an even more aggressive target—to reduce VOC emissions
to 45% below the 2000 level. For us, this means the Domestic
Project Division must reduce our emissions of hydrocarbons
including BTX, but excepting for methane contained in oil andnatural gas, to 580 tons by 2012. By burning vented natural gas,
and with proposed measures to limit VOC emissions during theloading of crude oil into tanker trucks, we expect to meet the
reduction target.
28

INPEX CORPORATION CSR Report 2008

1,000

462

800
600

258

0

8
210

400
200

338

259

241

97
241
2001

49

100
244
2002

29
101
188
2003

17

116
178
2004

8

258

16
120

17

62

355

153

24

51

444

44

355

153
182

27

119

129

129
111

2005

2006

2007（Year）

Limiting Emissions of PRTR Substances
Japan’s PRTR Law (Pollutant Release and Transfer Register Law),

we have managed to cut benzene emissions down to less than 30

which became effective in April 2001, requires all domestic field

tons since 2003.

offices of the Company to report the volume of benzene, toluene,
Emissions of Benzene, Toluene and Xylene（Domestic Projects）

and xylene (known collectively as BTX) and trivalent chrome■ Benzene ■ Toluene ■ Xylene

compound they emit and transfer.
With regard to limiting the emissions of benzene, we have beenmonitoring the environment around field offices once a month since2004, and in 2005, we established internal emission standards—if（Emissions in tons）

300

an office exceeds the standards, countermeasures are taken and200

continuously reviewed to limit emissions. Furthermore, in 2007 we

150

begun to reduce emissions by burning or recovering benzene. We
emitted about 280 tons of benzene in 2001—the first full year that

273

250
171
132

100

the PRTR Law was in effect. With the installation of VOC (volatile50

organic compounds)-removal equipment, the remodeling of internal

0

83
42
2001

floating roofs to oil tanks, and the control of dispersed natural gas,

27 24
14 6
2002

2003

28

16 6

18 11

2004

2005

3

19 9

3

2006

24

9 3
2007（Year）

Monitoring Wastewater Discharged into Public Water Bodies
At the six project sites in Japan (see the table below), where it isdefined by relevant laws are being met.

mandatory to measure the quality of discharged wastewater inAs the amended Mine Safety Law, which became effective inaccordance with Japan’s Mine Safety Law and Water Pollution

April 2005, now requires that the quality of drainage from mines beControl Law, released water is periodically analyzed by ameasured, we measure the quality of well water.

measurement certification institution to verify that the standards
Water-release Measurement Results in 2007 (average values)
Item

Effluent standard

Discharged
wastewater in 2007
pH

5.8〜8.6

Oyazawa Plant

Koshijihara
Plant/Power
Plant

Kubiki Refinery

Platform

Kashiwazaki
MaintenanceCenterNaruto Water
Collection Plant

25,507 KL

84,949 KL

488,471 KL

305 KL

330KL

4,727 KL

7.3

7.8

7.7

7.7

6.5

7.7

4 mg/L

63 mg/L

BOD/COD＜160 mg/Lー

1 mg/L

2 mg/L

7 mg/L

NA1)

Suspended solids＜200 mg/L
ー

NA

NA

2 mg/LNA

20 mg/L

9 mg/Ln-Hexane Extracts＜5 mg/Lー＜1 mg/L＜1 mg/L＜0.5 mg/L

NA＜0.01 mg/L

＜2.5 mg/L

Benzene＜0.1 mg/Lー＜0.01 mg/L

＜0.01 mg/L

＜0.01 mg/L

＜0.01 mg/L

＜0.05 mg/L

＜0.01 mg/L

Fluorine＜15 mg/L
ー

NA

NA

NA

＜0.01 mg/L

NA

NA

Boron (land)＜10 mg/Lー＜1 mg/L

1 mg/L

NA

NA

NA

NA

Boron (sea)＜230 mg/L
ー

NA

NA

NA

2 mg/LNA

NA

Nitrogen compounds＜100 mg/Lー＜1 mg/L

3 mg/LNA

23 mg/LNA

69 mg/LNA

Copper content＜3 mg/L
ー

NA

NA

NA

NA

＜0.1 mg/L3)

Arsenic

0.1 mg/L＜0.01 mg/L

＜0.01 mg/L

NA

NA

NA

NA

＜0.005 mg/L

＜0.005 mg/L

＜0.005 mg/L

NA

NA

NA

NA

＜0.01 mg/L

0.06 mg/L2)

NA

NA

NA

Total mercury
Phenols＜5 mg/Lー＜0.01 mg/L

1) Not applicable: Either these items are not subject to regulations or a quality measurement of wastewater or processed water has confirmed that the presence of these items
is no more than 1/10th of the effluent standards.
＜1 mg/L."
2) The extra standard stipulated by an ordinance of Niigata Prefecture is : ー＜2 mg/L."
3) The extra standard stipulated by an ordinance of Niigata Prefecture is : ー

INPEX CORPORATION CSR Report 200829

Preserving the Environment

Reducing Waste and Preventing Soil Contamination

We strive to reduce industrial waste,counter soil contamination and asbestos risks,and control PCBs
Goal/Performance/
Assessment（Domestic Projects）
2007 Goal

Preventing soil contamination in Domestic Projects
Take extensive measures to prevent soil contamination.
(1) Prevent soil contamination during operations; and, if contamination occurs, remedial action is promtly taken.
(2) Conduct soil contamination surveys during land rehabilitation and, if contamination is confirmed, remedial action is taken.

2007 Performance

There were two cases of returning lands, soil surveys for which were started in 2006 and completed in 2007. In each of the voluntary
surveys, no contamination was found that exceeded the standards stipulated by Japan's Soil Contamination Countermeasures Law.
There were three instances of oil leaks; we promptly recovered the leaked oil and cleaned the contaminated soil. Concerning thecontamination of soil and ground water caused by leaked heavy naphtha at TTP in December 2005, we were in the process ofcleaning the soil and groundwater inside and outside the TTP premises by pumping up groundwater, and were preparing to clean thesoil of public land outside the premise.

Assessment

In 2007, there were no instances of soil contamination that exceeded the standards stipulated by the Soil Contamination
Countermeasures Law. However, there were instances of pollution caused by sprayed oil and of leaked fluorine. Although we needto continue our effort to prevent such incidents, our guidelines for preventing soil contamination are well understood and followed in
the field. Therefore, we will make it part of ongoing HSE activities to strive to prevent soil contamination in 2008, instead of having aseparate goal.

2008 Goal（Surveys and Countermeasures are followed in the field in accordance with our guidelines for preventing soil contamination. We
conduct to prevent the soil contamination in our operations thorough ongoing HSE activities.）

Controlling Disposed Waste
Industrial waste we generate is primarily composed of well drilling

amounted to 3,051 tons, of which 48.8%, or 1,490 tons, waswaste and waste mud. In 2007, the total amount of industrial waste

recycled. Overall, 92.4% of all industrial waste, amounting to 40,089

we generated was 43,384 tons, of which 40,333 tons, or 93%, wastons, was recycled.

drilling waste and waste mud. This waste is treated as sludge; if thesludge contains more naturally derived heavy metals than thestandards permit, it is disposed of as landfill; if heavy metals arefound to be below the permissible level, the sludge is dewateredand recycled as materials for roadbeds. The total amount of drilling

Waste Disposal in 2007
（Domestic Projects）

Recycling Rate for 2007
（Domestic Projects）

Other
7%

Final Disposal
8%

waste and waste mud recycled in 2007 was 38,599 tons, or 89%.
Although the mud fluids we use for drilling are mainly made fromnaturally derived components, we have taken the precautionary
step against potential soil contamination by working with the
supplier of drilling fluids to control the concentration of heavy metals
in them.
Other industrial waste, such as waste oil and metal scrap,

Drilling waste andwaste mud93%

Recycled
92%

Total waste
43,384 tons

Total waste
43,384 tons

Soil Contamination Countermeasures
To date, the Domestic Project Division have not used any of the

TTP in December 2005, the company drove sheet piles into thehazardous substances specified under Japan’s Soil Contamination

ground around the boundary of the site to prevent contamination

Countermeasures Law. However, there is a risk that benzene

from spreading. In 2007, the company conducted an extensive

contained in crude oil may leak during production operations or

survey on contamination of the soil in the river-bed park near theheavy metals contained in drilling fluids may contaminate soil.

site and of groundwater to determine the geographical extent of

Therefore, we voluntarily conduct soil surveys at closed project sites,

contamination. In 2008, the company plans to either sanitize or

and replace soil if necessary before returning the land to its owners.

replace contaminated soil in the affected area.

When there was a leak of crude gasoline (heavy naphtha) at

30

INPEX CORPORATION CSR Report 2008

Controlling PCBs
Japan’s Law Concerning Special Measures Against PCB Waste,enacted in July 2001, introduced tougher regulations on the waste

Number of Stored
PCB-Containing Products

processing of products containing PCB (polychlorinated biphenyl).

High-voltage capacitors

95

Low-voltage capacitor

1

in use any longer. All our facilities take special care regarding theFluorescent light ballasts

435

storage of waste containing PCB, and have registered the storage

Mercury lamp ballasts

3

Switch1

In response, we replaced products containing PCB in use at all ourplants and offices in Japan over the years and no such products arewith municipal authorities. All such PCB waste is scheduled to beprocessed by July 2016 as the Law requires.

The storage of Fluorescent light ballasts

Addressing Asbestos Risks
In 2005, we contracted experts to make an assessment of the risk

three more types of asbestos to its surveillance list in Februaryof exposure to asbestos in all company buildings. Following the2008, we plan to conduct further analyses of building materials inassessment, we removed sprayed-on materials that had a highour buildings and take the necessary measures.

probability of asbestos emission, and initiated six-monthly

As we used asbestos at our drilling sites in the past, we carryinspections of insulating materials to verify that there is no risk ofout medical checkups to current or former employees who wish to

exposure to asbestos.

be checked for asbestos-induced health problems.

As Japan’s Ministry of Land, Infrastructure and Transport added

Environmental Accidents
In May 2007, an error in valve operation at the Shinbori Oil Tank ofwithered some of the rice plants. Some of the oil found its way into

Akita District Office in Sakata City, Yamagata Prefecture, resulted in

two rivers through drainage ditches. A total of 11.3 kiloliters of crude

five to ten liters of crude oil being sprayed over five paddy fields

oil was accidentally released, of which 7.8 kiloliters were recovered

west of the oil tank. After recovering the oil and surface water with

with oil mats and by a tanker truck with a vacuum hose in an areaabsorbent mats and a tanker truck with a vacuum hose, weclosed off with oil fences.

replaced water in the fields and processed contaminated soil on the

In August 2007, at the Hirai Plant of the Kashiwazaki District

farm roads. None of the rivers and public water bodies nearby were

Office, while preparing to resume operations following theaffected.

earthquake, an error in valve operation caused 34 kiloliters of crude

In July 2007, the Chuetsu-oki Earthquake in Niigata prefecture

oil to flow into an area inside oil-retaining walls. Leaked oil anddamaged part of the oil pipeline between the Hirai Plant and thecontaminated soil were immediately recovered. The erection of oil

Nakadouri Plant operated by Kashiwazaki District Office infences along rivers nearby prevented the oil leak from spreading

Kashiawazaki City, Niigata Prefecture, resulting in crude oil beingoutside the plants.

sprayed over four paddy fields. In the affected fields, sprayed oil

EPEDECO’s HSE Activities
West Bakr Petroleum Co., an oil development operating

fire incidents had occurred in thecompany,,engaged in operating activities in the eastern desert

company since it beganon the coast of the Gulf of Suez, gives high priority to its HSE

production in 1980. To raise

activities. For instance, in 2006, an investigation into the use of

employees’ awareness ofasbestos found that materials used for lagging an oil tankincident prevention, the company

contained asbestos. The company contracted an

has been conducting firefighting

asbestos-removal operator and a waste disposer in accordance

exercises once a month sincewith an Egyptian environmental law, and had them remove the

February 2008.

Asbestos-free pipe

asbestos in the closed-off area in June and July 2007. Also, No

INPEX CORPORATION CSR Report 200831

Ensuring Operational Safety

As a company that supplies the energy that fuels our society,we ensure uninterrupted safe operations andhave emergency response plans
Safety Initiatives
We have implemented a variety of precautionary measures toensure safe operations.
At the base is risk management performed in accordance withthe risk management procedures for identifying, assessing,
mitigating and controlling HSE-related risks, which are posed toproject sites and to human resources, machine and equipment

working in them, and which are defined for each business process.
In addition, we have formulated an emergency response plan foreach type of foreseeable operational emergency and conduct
exercises regularly so as to maintain a high level of preparedness.
Furthermore, we are working to develop security measuresagainst natural disasters, terrorists attacks and accidental explosions.

Safety Activities in Domestic Operations
Under the priority policy of eliminating human errors, the Domestic●Safety Education and Training

Project Division implements a series of measures to ensure safe

Following an annual training plan, we conduct a wide range of

operations, which include a near-miss activity1), hazard prediction,

safety education and training programs designed to help employees

preparation and revision of standard operational manuals, andgain knowledge and expertise in safety. In addition, we keep track“pointing and naming” and “calling out” activities. Many of theseof training history of each employee in an effort to provide the rightactivities are carried out by small groups of shift employees and day

guidance according to the individual level of understanding andworkers. Each office and employee set their own goals to achieve

proficiency. Field workers receive hands-on training with equipment,

and they report on their performance at HSE meetings for review

including simulation training2), which is intended to raise their safety

and further improvement of safety initiatives.

awareness and prevent errors in equipment operation.

1) Near-miss activity
Employees are asked to record small incidents that scare or startle them at project sites andshare them with fellow employees so as to prevent them from becoming serious incidents,
though they do not involve human and material damages.

2) Simulation training
Training through simulations on procedures for operating equipment and for responding to avariety of situations.

●Near-Miss Maps

●Disaster and Flood Measures Training
The Domestic Project Division regularly conducts a disaster training

The Domestic Project Division creates and utilizes a near-miss map

for main facilities including its main pipelines, assuming a naturalthat lists high-risk factors associated with its operations, along with theirdisaster and an accident occur. During exercises, emergency

possible consequences, which have been identified through near-missheadquarters are set up both in the field and at Head Office.

activities. This is another effort to eliminate any chance of incidents.

In 2007, we conducted disaster trainings at the Shin Nagaoka

A near-miss map clearly illustrates high-risk elements ofLine in Kashiwazaki City in June, at the Oumi Line in Itoigawa City

operations with graphics and photographs, created from internalin October, and at the Kubiki Refinery in Joetsu City in November,rules, near-miss reports and case studies on incidents. Employees

all in Niigata Prefecture. In these trainings, different offices, andare encouraged to refer to it in meetings before and duringsections and groups worked together.

operations so as to raise their safety awareness and preparedness,
as well as to share recognition of safety risks.

Introducing an Employee Safety Confirmation System
In 2007, the Group introduced an email-based safety confirmation

whether to activate the safety confirmation system, based on thesystem designed to ascertain the safety of employees and assist

extent of damages in the area. If it is an earthquake with an

the quick recovery of business operations in the event of aintensity of more than five upper, an email will be automatically sent

large-scale disaster in Japan.

to all employees at once in the affected area at their registered

In this system, an email will be automatically sent to a disaster

The system allows managers to check whether employees and theirearthquake measured intensity of more than five lower on thefamilies are safe via a dedicated web page.

Japanese scale strikes the region. The manager will determine

32

email addresses; employees will then report their status via email.

response manager of an operational area in the event that an

INPEX CORPORATION CSR Report 2008

Ensuring Operational Safety in Area 113 Block 3 & 4 in Ghadames, Libya
INPEX Libya, Ltd., an INPEX Group company, has been

HSE audit to ensure operational safety.

collecting new 2D seismic survey data as an operator in Area

From February through August 2008, the project went

113 Block 3 & 4 (4,272 km2) in Ghadames, 600 kilometers

smoothly without serious incidents. The company will likewisesouth-southwest of Tripoli from February through August 2008.

ensure operational safety during the drilling operation scheduledThis block is located in the middle of the hard-to-accessto begin in 2009.

Sahara Desert. In winter, the temperature plunges to sub-zero atnight, and rises to over 30° Celsius (86° Fahrenheit) during theday. In summer, the mercury soars above 50° Celsius (122°
Fahrenheit). Some dunes are 100 meters high and driving overthem is challenging. Under these severe working conditions, thecompany liaised with contractors prior to the project to conduct
an HSE risk assessment including an environmental impact
assessment, based on which they prepared an HSE plan. During

Seismic survey in the desert

the project, an HSE manager was on site, who performed an

Incident Report
In 2007, three operation-related incidents occurred in our domestic

Incident Rate in Domestic Operations
Average for oil, gas and mining industry in Japan
Average for oil and gas E&P industry in Japan
Teikoku Oil

operations; one was a crude oil leak from an oil pipeline damagedby the Chuetsu-oki Earthquake in Niigata Prefecture; and two
involved crude oil being leaked and sprayed over surrounding areas
due to operational errors.

Incident rate (number of incidents per million workers)
20
17.57

15

We did not have any cases of slight or more serious on-the-job
injuries, maintaining a zero-incident record from 2006. While none

12.29

of our employees suffered any work-related injuries, our contractors
had 12 work-related incidents.

8.43
8.2

10.36

10.76

10.95

6.13

8.09

8.76

5

Considering the above situation, we will work harder with ourcontractors to ensure greater operational safety.

11.14

10.18

10

2.88

3.03
0

0

0

2003

2004

2005

2006

0

0
2001

2002

0

2007（Year）

Passing on Knowledge and Skills
In our field offices, experienced employees pass on theirevents were replaced with new ones. This proved effective inaccumulated knowledge and skills to younger engineers.

achieving better average scores than in 2006.

One example of such efforts is the Five Senses & Skills

The Kashiwazaki Maintenance Center continues to review andTournament (F-1 Grand Prix) held at the Kashiwazaki Maintenanceimprove the administration of the tournament so as to make it

Center since 2006. The objective of this competition is to honesomething that employees look forward to every year.

employees’ five senses without relying solely on measuring
equipment, and, by competing young engineers against
experienced and senior employees, to provide an effective andenjoyable opportunities to transmit technical expertise acrossgenerations.
The second tournament was held in April 2007, with 36
competitors participating. As a result of being based on the
feedback from the first tournament and its improvement,

Sledgehammer contest

Applying the correct torque to bolts

participants were divided into teams for team competition and some

INPEX CORPORATION CSR Report 200833

Employee Health Management

Caring about the physical and mental well-being of
employees who work in a variety of environment
Health and Welfare
Each office of the INPEX Group has a Health Committee that meetsonce a month to review and upgrade the health management

to passive smoking.
The Group invites nutrition

system and to improve the working environment. With the guidance

specialists to give healthof occupational physicians and health supervisors, we promote swift

seminars once a year in eachand appropriate health care for employees. In 2007, we added

workplace. The seminar in 2007

metabolic syndrome to a list of to-be-checked items in healthwas held in October.

examination. In addition, we have separate smoking rooms in each
Heath seminar

workplace to prevent nonsmoking employees from being exposed

Efforts to Maintain and Improve Employee Health
To help prevent diseases among employees and enhance their

In 2007, we began to collect information concerning pandemic

awareness of health management, the Group implements a variety offlu through multiple sources including information service providers,measures such as providing regular health checks, support for

to raise our preparedness against the epidemic. In addition, we

complete medical checkups, and vaccinations against influenza. In

began contingency planning for each pandemic phase1) that the2007, nearly 100% of our employees received regular health checks.

World Health Organization has defined, so as to ensure employees’

Based on the results of health checks, we arrange for employees tosafety. In Jakarta Office, we began to stockpile medicines and food,consult with occupational physicians in an effort to ensureand gave briefing seminars to local employees, and Japaneseemployees’ health on a daily basis. Employees who work longer thanemployees and their families.

a specified number of hours are asked to take additional health

1) Pandemic phase
A pandemic is a worldwide epidemic of an infectious disease. The pandemic phase is basedon a scale of 1-6, with phase 6 being the pandemic stage.

checks as required. Employees posted to overseas positions are
given physical examinations and vaccinations before leaving Japan.

Health Management for Employees Working in Operation Sites
In some cases, our employees are posted to project sites in remoteconsultants to transport

overseas locations or where a sophisticated infrastructure is

emergency cases by helicopter

unavailable. We ensure that such sites are staffed with company

to the nearest available medical

doctors and medical staff to monitor employees’ health and to

facility that is equipped toprevent the outbreak or spread of infectious diseases. In addition,

provide appropriate treatment.

as contingency for employees’ illness or injuries at the site, we
contract with 24-hour medical emergency service providers as our
Helicopter landing at an offshore
operation site

Mental Health Initiatives
In recent years, an increasing number of workers in general arefound to be having mental health problems. In view of this, the Grouphas recognized that mental health is an important issue requiringof them received diagnosis. An expert on mental health care wasserious attention.

invited to provide both general managers and managers with training

We have made mental health consultations, both within andon the basics of mental health and on how to pick up an indication

outside the company, readily available to employees. Employees canthat something is wrong with their staff members throughreceive counseling by telephone, email and face-to-face consultation,communication.

with confidentiality of personal information strictly preserved.

34

In addition, we introduced a self-diagnostic tool for stress andencouraged employees to give it a try in January 2008; nearly 90%

INPEX CORPORATION CSR Report 2008

Environmental Performance Data by Site

Production and processing volume

Unit

Crude oil

Natural gas

Petroleumproducts

LPG

IodineKL

1,000s of Nm3

KL

ton

ton

Head Office
Akita

1,000s of kWh 1,000s of Nm3

KL

GJ

–––

–––

–––

–––

–––

–––

–––

–––

14,023

16,464

9,760

–––

–––

–––

–––

–––

–––

12,23237,492

11,874

–––

–––

–––

–––

–––

–––

15,287

Nagaoka

234,950

1,576,122

–––

–––

–––

–––

63,000–––1,268,819

Power Plant

–––

–––

–––

–––

–––

116,504––––––

999,838

Kashiwazaki

2,271

12,606

–––

–––

–––

–––

–––

–––

18,501

Chiba–––

20,571

–––

–––

490

–––

–––

–––

86,922

Drilling

–––

–––

–––

–––

–––

–––

–––

–––

216,652

TPC

–––

–––

–––

–––

–––

–––

–––

–––

37,859

TTP

–––

–––

222,446

5,360

–––

–––

–––

38,500274,891

OIP

156

10,982

–––

–––

–––

–––

–––

–––

112,369

Total(Domestic Operations)

Overseas
operations 2)

Purchased
Purchased Consumedgas
raw materials
fuelElectricity

Minami Aga
NiigataDomestic
operations 1)

ConsumedenergyPurchased volume291,333

1,641,915

222,446

5,360

490

116,504

63,00038,5003,057,393

Ichthys

–––

–––

–––

–––

–––

–––

–––

4,581

176,547

Masela

–––

–––

–––

–––

–––

–––

–––

–––

557,408

INPEX Libya

–––

–––

–––

–––

–––

–––

–––

–––

21,383Venezuela

19,364

782,560

–––

–––

–––

–––

–––

–––

8,488

Egypt

264,020

–––

–––

–––

–––

–––

–––

–––

147,304

Teikoku Oil Libya

–––

–––

–––

–––

–––

–––

–––

–––

101,400

Total(Overseas Operations)

283,384

782,560

–––

–––

–––

–––

–––

4,581

1,012,530

Sea water,
Tap water Ground river water
water
and others
KL

Unit

KL

Disposed waste 3)
Wastewater Final disposal volume
Industrial
Recycled
waste
Discharged
volumesubject toOthersinto public
specialwater bodies control

GHG emissions
from flare andfrom energy use
dispersion

Consumed water

KL

CO2

CH4

ton

ton-CO2eCO2Head Office

20,988

180

0

1,134

0

Akita

7,079

0

0

1,137

Minami Aga

5,922

0

0

1,165

Nagaoka

115,246

399,451

0

CH4

ton

ton-CO2e

ton

KL

ton

0

0

330

0

5

0

2,769

0

0

3,285

1,002

0

66,027641

212,002

682

ton
6

3

5

17

0

0

218

5

110,456

0

411

770

NiigataDomestic
operations 1)

Power Plant

0409,738

0

63,5936

0

39

25,269000Kashiwazaki

20,834

0

0

1,934

0

0

21,110

0

0

81

307

Chiba

7,029

6,501

0

8,016

0

0

2,026

4,727

0

265

0

Drilling

6,864

32,602406,228

15,016

0

0

0

0

0

1,993

38,627

TPC

3,314

0

0

2,381

1

152

7,557

0

0

8

1

TTP

2,658

325,160

016,23400

0488,471

4

219

326

2,935

0

0

6,332

0

0

369

305

0

69

49

192,869 1,173,632

406,228

182,969652

215,439

35,555629,5588

3,286

40,089OIP
Total(Domestic Operations)

Overseas
operations 2)

Ichthys

9,509

0

0

12,330

22

5,323

0

0

12

75

25

Masela20,1450041,30400

020,145NA

NA

NA

INPEX Libya

0

2,460

0

1,619

0

0

0

0

2

4

0

Venezuela

2,770

0

0

788

6

60,906

3,358

0

0

22

0

Egypt

NA

NA

NA

8,685

0

16,02818,090

0

NA

NA

NA

Teikoku Oil Libya

0

9,801

0

7,521

6

0

0

0

4

310

0

Total(Overseas Operations)

32,424

12,261

072,24634

82,257

21,44820,145

18

411

25

NA: Not applicable –––: Outside the reporting scope
1) TPC: Teiseki Pipeline Co., Ltd. / TTP: Teiseki Topping Co., Ltd. / OIP: Offshore Iwaki Petroleum Co., Ltd.
2) Ichthys: INPEX Browse, Ltd. / Masela: INPEX Masela, Ltd. / INPEX Libya: INPEX Libya, Ltd. / Venezuela: Gas Guarico, S.A. / Egypt: West Bakr Petroleum Co. /Teikoku Oil Libya: Teikoku Oil Libya U.K. Ltd.
3) Only industrial waste is reported for domestic operations.
INPEX CORPORATION CSR Report 2008

35

Stakeholder Relations

Building Good Relationships
with All Stakeholders

Our stakeholders include customers, shareholders, investors,
communities in which we operate, business partners and employees.
Through a stable supply of energy, sharing of information,and community development initiatives,
we maintain close communication with all our stakeholders.

36

INPEX CORPORATION CSR Report 2008

Stakeholder Relations

For Our Customers

To meet the growing demand for natural gas, we are increasinggas production and expanding our gas transportation networkwith an eye to upgrading a supply system that is both safe andenvironmentally friendly
Expanding the Natural Gas Pipeline Network
Since INPEX Group began operating the Tokyo Line—the firstterminal on the Pacific Coast. In 2007, work on an extension to thelong-distance high-pressure pipeline built in Japan—between

Shin Tokyo Line was completed, which dramatically increased the

Niigata Prefecture and Tokyo in 1962, we have made a series ofsupply capacity of natural gas to the northern Kanto region—which

extensions and upgrades to the pipeline network to broaden its

has huge market potential.

geographical coverage while providing a reliable supply of natural

As global warming is

gas for customers in the region along the pipeline.

becoming a pressing issue, we

In particular, we have intensified our efforts to expand the

expect the demand for natural

pipeline network to satisfy expected growing demand, since wegas to remain steady and strong,started the first phase of the construction project for the Shin Tokyoand have been working on

Line in 1996. In 2006, a reliable network with broader regional

another construction project forcoverage was realized when our own Shizuoka Line and thethe Shin Oumi Line in Niigata

partially-owned Minamifuji Pipeline were completed, which connect

Prefecture.

Construction of gas pipeline

domestic gas fields on the Sea of Japan side and an LNG import

Maintaining Pipelines
Keeping the pipelines, which run for a total length of more thanstable operations at construction sites on an ongoing basis while

1,300 kilometers, in good working condition is a critical duty we

preserving the environment; it is based on “HSE Policy,” “HSEhave to fulfill in order to supply natural gas to customers in a secure

Policy Guidance,” “HSE Management System Manual” andand stable manner.

“Corporate Contractors HSE Management Procedure,” andTo accomplish this, our Domestic Project Division routinely

provides for the Company’s role and responsibility, HSE

makes visual inspections of the pipelines to check that they are

requirements for contractors, and criteria for evaluating contractors’safe, and also conducts physical diagnostics, such as looking for

HSE performance.

leaks or signs of corrosion. In addition, to prevent incidents during
construction projects that the Company and its affiliates undertake,we brief all staffers and workers at construction sites on health andsafety matters and case studies on incidents that have occurred atother exploration sites. We also compile case studies on pasttroubles to learn from them.
In fiscal 2008, we began to apply the “Procedure for Contractors’
HSE Management” to contractors working on our pipeline

Leakage detection with FID gas detector

construction projects. The procedure is intended to ensure safe andData transmission through portable satellite
communication devices

Increasing Production at Gas Fields
The Minami Nagaoka Gas Field, which is located in Nagaoka city,

Minami Asahihara Base, which is

Niigata Prefecture, has been continuously increasing its production

located in the southern Minami

capacity to meet the growing demand for natural gas. During fiscal

Nagaoka Gas Field and becameyear ended March 31, 2008, the addition of a new processing train

operational in December 2007.

to the Koshijihara Plant raised the gas field’s total daily output to

Another backup well is now

5.26 million normal cubic meters.

being drilled in the base since

We are also developing a backup system against the failure of
production wells in the gas field. We drilled a backup well in the

March 2008.
New processing train at a gas plant

INPEX CORPORATION CSR Report 2008

37

Stakeholder Relations

For Our Customers

Providing a Reliable and Flexible Supply of Gas with a Built-in Underground Storage System
Natural gas can be injected into a depleted gas or oil reservoirs for

either the Koshijihara Plant or the Oyazawa Plant is shut down in anstorage. This storage method utilizes a natural undergroundemergency, or during the peak demand period, allowing us to

structure, and its advantage over an artificial subsurface facility isprovide an uninterrupted and flexible supply of gas.

that it has higher survivability when earthquakes occur, and issimple to operate for long-term storage.
Our Domestic Project Division converted the Sekihara Gas Field

As of December 2007, 195.74 million normal cubic meters ofgas (equivalent of about 11% of our domestic annual gas sales) isstored underground.

in Nagaoka City, Niigata Prefecture, into an underground storagesite for natural gas to respond to seasonal fluctuations in demand.
We upgraded the facility at the Sekihara Plant in January 2008,

Conceptual diagram of storing natural gas in a depleted oil
and gas field shown in section

which increased the daily output of gas to 2.4 million normal cubic
meters from 1.6 million normal cubic meters. In addition, an

Injection/withdrawal wellextension to the Shin Nagaoka
Line connecting the Sekihara
Plant and the Oyazawa Plant in
Nagaoka city was completed in
December 2007, contributing to
the continued expansion of the

Cap rock (impermeable layer)

pipeline network. As a result, weGas (reservoir)

have the Sekihara Plant as aneffective backup system when

Injection/withdrawal well at Seikihara
Gas Field

Removing Hazardous Substances
Crude oil and natural gas produced from underground reservoir
may contain minute quantities of substances that fall under thecontrol of Japan’s PRTR Law, such as mercury and arsenic. Oil andgas containing such substances may cause risk of affecting thesurrounding environment.
Therefore, our Domestic Project Division removes these
impurities by means of an absorbent at its natural gas processing
plants and oil refineries.

Hazardous substance removal equipment
for gas for sale

Hazardous substance removal equipment
for gas condensate

Publishing GHS-compliant SDSs
In accordance with the amendment of the Japan’s Occupational

December 2006, and for natural gas and oil products since May

Health and Safety Law, the Company has decided to start SDSs1) in2008.

compliance with GHS2) for natural gas, crude oil and iodine

1) SDS
Safety Data Sheet. A document providing information regarding chemical substances
contained in a product.
2) GHS
Globally Harmonized System of Classification and Labeling of Chemicals. A system forstandardizing the classification of hazardous chemicals, and specifying what information
should be included on their labels and safety data sheets.
3) JIS-Z 7250 (2005 version)
Japan’s MSDS standard. The 2005 version complies with GHS.

products. The Company prepares SDS based on JIS-Z 7250 (2005version)3) in compliance not only with GHS but also with the PRTR
Law for our natural gas and crude oil customers, and has been
providing customers with compliant SDSs for iodine products since

38

INPEX CORPORATION CSR Report 2008

Stakeholder Relations

Working with Our Business Partners

We are striving to build a good and sound relationship with ourbusiness partners, while working with them to prevent incidents
and reduce adverse environmental impacts
Procurement Policy
The Group has been carrying out procurement in a transparent, fairand hiring contractors, has its staffers revisit the guidelines and theand unbiased manner, and pursuant to that, our Domestic Projectcompliance manual periodically to refresh their awareness of these

Division established the “Guidelines for Fair Business Conducts

rules when conducting procurement practices. At all-handswith Suppliers and Contractors” in April 2006.

departmental meetings held twice a year, staffers are reminded of

The guidelines prohibit practices that would unlawfully impede

the importance of following the guidelines.

fair and free competition, abuse dominant bargaining positions, andinappropriately bestow or receive benefits; in addition, they stipulate
respecting intellectual properties owned by suppliers andcontractors, and protecting confidentiality of information andtechnologies owned by suppliers and contractors.
Copies of the guidelines are distributed to relevant departments
to ensure compliance. In particular, the Procurement Department,
which is directly responsible for procuring materials and equipment

Guidelines for Fair Business Conducts with Suppliers and Contractors

Promoting Green Procurement
The Guidelines state, “We adopt an environmental perspective

We installed Eco Mark3)-certified office furniture in our new

when selecting and procuring materials, equipment and services,

Akasaka Office in Minato-ku, Tokyo. We selectedbased on the Company’s HSE Policy.”

environmentally-friendly office furniture, such as those made of

For example, we have been working with a supplier of mud

recyclable materials and/or with reduced size and weight.
3) Eco MarkA label attached to a product determined to
be environmentally friendly over its entire
life cycle from production to disposal by
Japan Environment Association.

fluids we use for drilling wells to control both naturally resident andartificially-added heavy-metal components contained in the drilling
fluids with the aim of preventing them from contaminating soil
around the wells. The supplier reported to us that it was ready to
begin analyzing components by the end of March 2008, which is a
critical element of control. It also plans to be ready to produce
GHS-compliant SDSs by 2010, as the amended Occupational
Health and Safety Law requires.

Barite made of natural resident, drilling fluid
chemical (Photo provided by Telnite Co., Ltd.)

Implementing Contractors’ HSE Management
As our HSE Policy requires contractors to manage their HSE in

is intended to standardize business projects commissioned toaccordance with our policy, and to achieve agreed HSE targets, we

contractors, and requires them to submit to us their HSE plans,

invite contractors to our HSE meetings and training sessions.

which must be consistent with our HSE management system. We

Despite this effort, there have been an increasing number ofalso plan to incorporate an assessment to determine the HSE

incidents involving contractors and to reverse this trend, we

competency of contractors participating in the bidding—a process

formulated the “Corporate Contractors’ HSE Management

we have been following in our overseas projects—into our domestic

Procedure” during fiscal year ended March 31, 2008. The procedurebidding process.

INPEX CORPORATION CSR Report 2008

39

Stakeholder Relations

Valuing Our Employees

Under the human resources system designed to build anorganization capable of competing in the global arena,
we evaluate and treat employees fairly and train them proactively
Human Resources System
INPEX CORPORATION, as a leading Japanese E&P company, hasa corporate vision to become an integrated energy company that
performs in the global arena. In order to establish a humanresources system that will help make this vision into reality, we set

2. A system that encourages all employees to gain a broader
perspective on work duties so as to identify issues, come up withsolutions on their own initiative, and act responsibly.
3. A system that assists all employees in their efforts to pursue andforth the following basic policy in October 2006.

challenge self-development over an extended period of time.

Basic Policy on Human Resources System

4. A system that is transparent and straightforward in recognizing

1. A system that encourages all employees to play their part andwork as a team to achieve higher organizational goals,

employees’ individual contribution to achieving corporate
objectives and making them feel rewarded fairly.

contributing to the growth of the company.

Human Resources System Created for the New Company
The Group has worked to create a new human resources system into develop their own skills and to motivate them to perform better.

preparation for the completion of the merger between INPEX andAt the same time, it is designed to build an organization capable of

Teikoku Oil. The findings from an employee awareness survey

competing in the global arena, in the belief that a team of highly

conducted in 2006 and interviews with management proved usefulskilled individuals can continuously perform well.

in working out the specifics and details of the system, such as
working terms and conditions.
The Human Resources Department first identified the differences

To promote the ideas behind the new human resources systemthroughout the Group, officers in charge of human resources and ateam of human resources and labor management staff gave 39

in working terms and conditions among group companies and in

briefing sessions to 1,150 employees at 29 locations inside andculture and history behind them. Then the department worked withoutside Japan in January and February 2008.

officers and the labor union to define each of the wide-ranging

During the fiscal year ended March 31, 2008, we published aworking terms and conditions with the aim of establishing the mostbooklet titled “Departure from Mining Mura” so as to begin fostering

appropriate human resources system for the new company.

unified values and awareness among all employees prior to the

The new human resources system is a natural and logicalcompletion of the merger. The booklet promoted mutual

evolution of policies adopted by the group companies prior to theunderstanding among employees of the three companies, namely

merger, characterized by the wage and promotion system which

INPEX, Teikoku Oil and Japan Oil Development, and, whilereflects individual employees’ competency and job performanceacknowledging their differences in culture, discusses therather than personal qualifications, such as age, academic career

importance of identifying something in common and striving toand seniority. The new system is intended to encourage employees

create a new common culture.

Personnel Evaluation
The Company’s basic policy on personnel treatment states that

employees themselves, so that they can look back on their own

they should be compensated on an equal level as long as they

performance and identify the gap between supervisors’ evaluation

receive the same performance ratings. To make this policy work, aand their own to determine what to improve. Management byfair and accurate system of personnel evaluation needs to be

objectives and interviews between supervisors and staffers, which

established.

were adopted by the two companies, remain in place after the

Accordingly, the new human resources system adopted by the
new company evaluates employees from three perspectives—(1)Evaluation of an employee’s goal achievement and its process; (2)merger. In addition, we have begun to permit employees to submit
preferences concerning work duties and transfers.
We will promote employee’s self-development and achievement

Evaluation of utilization of an employee’s ability in setting out andof organizational objectives by ensuring that these personnel

achieving individual performance objectives; and (3) Evaluation ofevaluation systems will come to stay in place throughout thean employee’s behavior and attitude toward the values that theworkplaces.

Company holds.

40

The evaluation is carried out not only by supervisors but also by

when employees with the same job grades, roles and work duties

INPEX CORPORATION CSR Report 2008

Employment Opportunities for the Handicapped People
The Group has been proactive in hiring handicapped people. As ofand provide opportunities for career development,” we are

March 31, 2008, 22 employees with disabilities are engaged incommitted to contributing to communities and society by continuing

clerical and support work.

to offer employment opportunities to handicapped people in

As our CSR Policy states, “Value the individuality of ourdifferent workplaces within the company.

employees, secure a safe, healthy and worker-friendly environment,

Providing Childcare Support
The Group has instituted broader childcare-leave programs thanare ready for primary school. We also subsidize the part of nursery,

required by the law. In addition to allowing employees with children

day-care center and babysitting costs, and employ a flextime

up to 18 months old to take childcare leave, we free employees withsystem for employees until their children reach school age.

young children from overtime and night shifts. We also pay 20% of
their salaries on top of the statutory childcare leave benefit.
In addition to the programs described above, the Company
allows employees to work two hours less per day until their children

Furthermore, we are formulating a general action plan as an
employer as required by the Law for Measures to Support theDevelopment of the Next Generation so as to help employees
balance their work and childcare.

Stepping up Human Resources Development Programs
Joint Hiring of New Recruits
Prior to the merger, former INPEX Holdings Inc. worked with INPEX

pool of applicants. We hired 45 new graduates in 2007 and 58 inand Teikoku Oil to begin jointly hiring college graduates in April

2008.

2007.
This practice raised the efficiency in the hiring process andallowed us to pick and choose talented human resources from a

We implement a training session for new recruits on the oil andnatural gas E&P business so that they can begin their assigned jobs
in different departments.

Employee Training
The Group provides training programs with the aim of cultivating

communication skills, the Group provides opportunities for them tocore human resources that contribute to enhancing corporate value

take language-training courses, to participate in on-the-job training

in the context of the Group’s global business development. We areprograms at our overseas offices, to continue studying at

also committed to improving the overall level of employee

universities and institutions in Japan or abroad, and to pursue

competency.

self-learning through distance learning.

The Group runs training programs tailored to each layer of
employees within the company—senior management, middle
management and new employees—and promotes education oncompliance to ensure not only employees’ conformance with allapplicable laws and regulations, but also their adherence to ethicalbusiness conducts. We also implement a mentor system to provide
on-the-job training and psychological support for new employees.
To enable employees to improve their international

Visiting a project site as part of on-the-job
training at an overseas office

New employee orientation

INPEX CORPORATION CSR Report 2008

41

Stakeholder Relations

Contributing to Communities

We carry out a wide range of activities that contribute to thesound and sustainable development of the local communities inwhich we operate
Regional and Community Development
The Group conducts a social impact assessment when it begins athis process, information concerning the project is disclosed to theproject; it reviews the economic and social effects the project willcommunity so that the community can be aware of the project

have on a community, and takes action to mitigate any potential

activities. We also listen to the community to understand its needs,

adverse impacts of the project. Measures taken to mitigate suchand this information is used to formulate community development

impacts are continuously monitored for their effectiveness. During

programs.

Participating in the Environmental Conservation Program for the Mahakam Delta
The Company participates in the Community Empowerment

In pursuit of these objectives, we are undertaking thePrograms Delta Mahakam in the Republic of Indonesia, which

following support initiatives: (1) Deploying a community

runs from 2007 through 2012, in collaboration with the United

development model called Silvo Fisheries, intended to

Nations Development Programme and others.

concurrently pursue the community’s environmental preservation

This program is intended to restore and conserve theand economic development in agriculture and fishery. Under thismangrove forests in the Mahakam Delta, that were severely

model, the area will be lined with alternating shrimp ponds anddamaged by the development of shrimp ponds in the area, andmangrove forests; (2) Assisting municipal authorities into help the local economy and community achieve sustainable

developing and implementing a policy on resolving issues overdevelopment.

land-use rights; (3) Helping municipal authorities become better

The delta surrounding the offshore Mahakam Block, in which
the Company has a working interest and which has become oneof the Group’s major blocks, has a prominent area of mangroveorganized and carry out human resources development; and (4)Enlightening local residents on environmental preservation.
In 2007, we conducted surveys on the pilot farm, engaged invegetation that plays an important role of maintaining the

public relations activities at wide-ranging international

biodiversity of the surrounding areas and of absorbing CO2. It

conferences, published newsletters, and provided environmental

also provides a source of drinking water and serves as a

education and enlightenment for government agencies,

transportation route for natural resources.

municipal authorities and educational institutions.

Following the Asian financial crisis of 1997, shrimp ponds

Our plans for 2008 include analyzing and assessing themushroomed everywhere in the area, as the shrimp businessecosystem in the Mahakam Delta, and identifying the area in

was seen as a lucrative source of foreign currency. As a result,which mangrove forests were most severely damaged. We also

the majority of the mangrove forests vanished from the delta, up

plan to devise specific plans to implement the Silvo Fisheries

to 80% of which was turned into shrimp farms. Worse yet,method and look into local restrictions and governmentchemicals used in the farms to protect shrimp from diseases

ordinances.

polluted the delta.

The Group is committed to contributing a total of U.S. $1

The objectives of this program are not only to restore andmillion to the program over five years. We will continue toprotect the mangrove forests, but ultimately to assist the local

support the program by working within the Executive

community and municipal authorities in restoring and protecting

Committee—the project’s highest decision-making body—tothe environment of the entire Mahakam Delta on their own, andwork out action plans and monitor their implementation.

to help the local economy achieve sustainable development.

Mangrove forest in the Mahakam Delta

42

INPEX CORPORATION CSR Report 2008

The Mahakam Delta turning into
shrimp ponds

Silvo Fisheries

Meeting with government officials and UNDP

Contributing to Social Development along the BTC Pipeline RouteThe Group has participated in the BTC (Baku-Tbilisi-Ceyhan)

implemented in cooperation with International Finance

Pipeline Project. The 1,768-kilometer-long pipeline transports

Corporation —a member of the World Bank Group— to widen

crude oil from the Caspian Sea city of Baku (B) in Azerbaijan, viaaccess to finance for micro and small enterprises in Azerbaijan’s

Tbilisi (T) in Georgia, to the Mediterranean Sea port of Ceyhan

western regions. This project will enable the Micro Finance Bank(C) in Turkey.

of Azerbaijan to expand its branch network to the towns of

As part of this project we and our partners are implementing
community and environment investment programs to bring

Mingechevir and Gazakh by opening one new branch in eachtown as well as improving the services of its Ganja branch.

benefits to the communities through which the pipeline passes,

The other examples include vocational training programs andand are implementing the regional development initiative forbusiness schools that were offered to young people in Azerbaijan

long-term economic growth and socioeconomic development in aand Georgia so that they could have greater employment

wider geographical area. In 2007, we and our BTC partners

opportunities; installation of solar-powered water-purification

contributed U.S. $12.8million to the social initiatives undertaken

systems in Azerbaijan; assistance in improving quality of honeyin Azerbaijan, Georgia and Turkey.

and in development of new markets for the bee keeping industry

Our social contributions have a number of objectives

in Georgia.

including: enhancement of local enterprise development,
provision of access to energy, support for effective governance,
positive social and community development for people living near
our facilities, protection of biodiversity and environment around
our assets and in the regions where we are represented. The
social investment is implemented in close collaboration with stateand local governments, international financial institutions,international and local NGOs.
For example, one of our social investment projects is

Solar-powered water-purification facility

Supporting a beekeeper

Participating in EITIThe Extractive Industries Transparency Initiative (EITI) is a global

As of May 2008, EITI is implemented in 23 countries, including

initiative aimed at preventing corruption and bribery often

East Timor, Ghana, Nigeria and Kyrgyzstan. The Group participatesassociated with extractive industries—such as oil, gas andin the EITI programs in Kazakhstan and Azerbaijan, where we carrymining—and at seeking greater transparency in financial flows andout projects, and provides financial information.

greater accountability given by resource-producing countries. The
initiative was proposed by then-British Prime Minister Tony Blair at
the World Summit on Sustainable Development in September 2002

EITI Diagram

held in Johannesburg, South Africa.
Under this initiative, a company that develops natural resources,
and the host country that owns them, each disclose details of the

NaturalResources

Resource-Producing
Country

Resource-Development
Company

Payments

money and the products transferred between them. This information(1) Report ofPayments(2) Report of
Revenue

is audited by a third-party auditing firm, and the results are(3) Audit

published periodically as an EITI report by the host country. EITI is

Third-Party Auditing Firm

intended to improve the standard of governance inresource-producing countries through objective verification offinancial transactions, as well as to ensure that the revenue from

(4) EITI Report
Monitoring

resource development contributes to sustainable economic growthand poverty reduction in those countries.

Stakeholders

INPEX CORPORATION CSR Report 2008

43

Stakeholder Relations

Contributing to Communities

We consider educational support an important componentof our CSR initiatives, and offer education programs in many partsof the world
Educational Support
Inviting University Students from UAE to Study in Japan
Since 1993, Japan Oil Development Co., Ltd. (JODCO), an INPEX

seminars. In fiscal 2007, weGroup company, has been organizing a seminar in Japan forreceived five students from theuniversity students from the United Arab Emirates (UAE) majoring

UAE University and another fivein geology, with the support of the Abu Dhabi Oil Co., Ltd. The

from the Petroleum Institute inseminar is held in summer for three weeks, offering classes not only

Abu Dhabi. In fiscal 2008, we areon geology, but also on topics that help students deepen their

hosting five students each fromunderstanding of Japanese culture and tradition.

those institutions.

Over the past 15 years, 83 students have participated in theWith university students from UAE

Supporting the Petroleum Institute in Abu Dhabi
The Petroleum Institute is a college established principally by theenergy issues that were given by Japanese experts in 2007. In

Abu Dhabi National Oil Company in line with a decree issued by theJanuary 2008, the company ran a short-term intensive program on

government of Abu Dhabi in December 2000. The institute’s

remote-sensing technology that utilizes earth observation satellite

mission is to develop the human resources equipped with special

images for geoscience /engineering and management skills necessary for the oil and gas

petroleum industry applications.

upstream and downstream business—Abu Dhabi’s key industry.

It was so well received by the

JODCO, one of the founders of the institute and a member of its

participants that the company

governing board, makes a financial contribution to the instituteplans to continue and upgrade

together with some other international oil companies that havethis program in fiscal 2008 andworking interests in Abu Dhabi. In addition, the company assists the

beyond.

institute in upgrading its education and R&D programs. For

Students of the Petroleum Instituteinstance, JODCO sponsored three lectures on environmental andEngaged in Social Development in Venezuela
Since 1993, the Company has been engaged in E&P operationsin the area around the city of Valle de La Pascua in northern

quality of life to the community and assisting in its industrial

Venezuela. Recognizing the importance of the socioeconomic

development. In 2007, it offered to help municipalities build adevelopment of local communities, we have since undertaken awater-supply system that extended from a lake to the city. When

number of initiatives, such as providing health checks forcompleted, it will provide drinking and irrigation water—amembers of local communities, repairing and renovating schools,

tremendous contribution to the community.

and donating PCs, desks and bookcases to the community’ssocial development projects.
Since 2006, Gas Guarico, S.A. a natural gas venture

44

The oil company is particularly interested in bringing a better

In 2007, the company also offered support to culturalactivities; it donated a floor-to-ceiling mirror to a dancing studio at
an elementary school; it offered financial support to groups ofcompany 70% owned by the Company has been engaged inhousewives who make traditional dolls so that the tradition of folksocial development activities in the region.

art would be carried over to the next generation.

INPEX CORPORATION CSR Report 2008

Participating in the Emirates Foundation
The Emirates Foundation was founded in 2005 by the government

program—a reputed program created in Japan, designed toof the UAE, with a task of providing financial support for educational

encourage children to develop self-learning habits—in Abu Dhabi

and research projects by public-private patnership ; its mission is tosince 1998. In October 2007, the company co-founded the Abu

upgrade the country’s educational and research institutions so as toDhabi Educational Fund with the Emirates Foundation tobring up leaders for the next generation, through the management

commemorate the accomplishments of the program that contributedand disbursement of the endowment fund.

to improving academic abilities of

JODCO is participating in the foundation to solidify the goodthe country’s young people. The

relationship it has maintained with the government of Abu Dhabi.

fund is intended to enhance

The company is a member of the Board of Trustees—thechildren’s learning motivation by

foundation’s highest advisory body, which comprises government

providing scholarship to

officials and representatives of donor companies—in which thehigh-achieving students.

implementation of many support programs are reviewed andapproved.

Award Presentation Ceremony

In addition, JODCO has offered the Kumon educational

Receiving Overseas Trainees through IAESTE
Since 2003, the Company has been hosting trainees from overseas

provides trainees with opportunities not only to learn practical skills,

as part of a program by the International Association for the

but also to experience Japanese culture through exchanges with

Exchange of Students for Technical Experience (IAESTE) Japan. In

our employees. We received five

June and July, trainees receive practical training in oil and naturaltrainees from Oman up to Marchgas development projects at the Niigata District Office and its

31, 2008, and provided themassociated production sites.

with tours and training sessions

The goals of IASTE are to provide opportunities for trainees toin our development anddevelop advanced knowledge and expertise in specialized fields

production departments.

through practical training in foreign countries, and to promoteinternational exchange. The Company, in support of these ideas,

Hosting a trainee from Oman

Supporting Mutual Exchange between Japan and Indonesia
In March 1981, the Company established the INPEX ScholarshipFoundation to promote the development of education and science in2008.
In 2008, commemorating the 50th anniversary of Japan andIndonesia and in Japan, and foster mutual understanding andIndonesia establishing diplomaticfriendship between the two countries.

relations, the foundation offered

The principal activity of the foundation is to offer scholarships forscholarships to a greater number

Indonesian university graduates with a degree in natural science toof students than normal andtake masters course programs at Japanese universities. The

plans to sponsor a panel

foundation also assists young Japanese researchers who wish to

discussion in Jakarta between

study in Indonesia. The foundation has provided scholarships to aformer scholarship students fromtotal of 131 Japanese and Indonesian students up to March 31,

Japan and Indonesia.

An Indonesian student withJapanese schoolchildren

Sponsoring an Emily Kngwarreye Exhibition
The Company co-sponsored a retrospective exhibition on Emily

The Company continues to

Kngwarreye, a leading abstract artist of Australian Aborigine

provide support for cultural

origin. It was the first retrospective on her held outside Australia,

activities related to the regions inand was presented in Tokyo and Osaka from February throughwhich we operate.

July 2008.
Exhibition

INPEX CORPORATION CSR Report 2008

45

Stakeholder Relations

Contributing to Communities
Feature Story

Ensuring the safety of natural-gas pipelines in earthquake-hit
areas and providing assistance for recovery

Following the earthquake, we inspected thepipelines to ensure their safety and prevent
damage-induced incidents

We offered assistance to hard-hit
communities in their recovery efforts

Inspecting Pipelines in Earthquake-Hit Areas

Donating Disaster Relief Monies and Supplies

In the immediate wake of the

On July 20, the fourth day after the earthquake, the Company

earthquake, Teiseki Pipeline

donated 10 million yen to a disaster relief fund set up by Niigata

Maintenance Service Co.

Prefecture, 10 million yen to Kashiwazaki City, 5 million yen to

performed an emergency

Joetsu City, and 5 million to Nagaoka City. The Company also

inspection of the natural-gas

provided emergency relief supplies to Kashiwazaki City, which

pipelines in the affected areas.

included 5,200 two-liter bottles of water, 7,000 blue plastic sheets,

No damage was found in theimmediate inspection or in

Inspecting damages to a road underwhich pipelines run

follow-up inspections made at high-risk spots; and the supply of

6,500 portable toilets, and 26,000 plastic bags. In addition, officers
and employees in the Group raised 1.2 million yen to donate it to
Niigata Prefecture.

natural gas went uninterrupted.

Preventing Damage-Induced Incidents during
Repair Work

200 Employees Volunteered Assistance inHard-Hit Areas
From July 24, 2007 throughThis earthquake caused severe damage to essential lifelines in

September 14, 2007, 200 INPEX

Kashiwazaki City and the surrounding areas for a substantial

Group employees volunteered

distance. Gas and water utility companies from other regions intheir assistance in theJapan came and assisted in the restoration of utilities in the region.

earthquake-hit areas.

The Shin Nagaoka Line—an important major pipeline, which

They worked primarily on

connects Nagaoka City and Joetsu City in Niigata Prefecture—runs

weekdays when there were

through Kashiawazaki City. There was a concern that those helpers

fewer other volunteers, helping

from utilities companies of other parts of Japan, unfamiliar with theunload and sort relief supplies delivered to Kashiwazaki City, collectgeography of the area and the location of buried objects, might

garbage, and remove debris from the collapsed fences.

Our employees working as volunteers

accidentally damage our pipelines while performing their work,
Teiseki Pipeline Maintenance Service Co. obtained daily updates on

Making Idle Land Available in which to Build
Temporary Housing

repair works, and its employees were present at every repair site to

The Company made 5,700

monitor repairing works. These efforts proved effective in preventing

square meters (1.4 acres) of

the pipelines from being

land it owned in Kashiwazaki

damaged caused by repair

City available to Niigata

works done on other utilities, andPrefecture free of charge, on

helped ensure an uninterrupted

which to build temporary

supply of natural gas. In addition,

housing.

which would seriously affect the community. To help prevent this,the company carried out

Kashiwazaki City constructedtemporary repairs to the

Temporary houses

temporary houses for 50 families on the land.

damaged roads under which theShin Nagaoka Line runs.

Damage assessment of gas pipes

Opening the Company’s Shower Facilities to
the Public
The Company made the shower rooms in its Okubo Dormitory in
Kashiwazaki City available to the public from July 20, 2007 throughAugust 16, 2007. A total of 2,520 residents used the facilities, manyof whom sent heart-felt thank-you notes by e-mail.

46

INPEX CORPORATION CSR Report 2008

Immediately after the powerful Niigataken Chuetsu-oki Earthquake hit Kashiwazaki City,
Kariwa Village and surrounding areas in Niigata Prefecture in July 2007, we ensured the safety ofnatural gas pipelines in the heavily damaged areas so as to maintain an uninterrupted supply of gas.
Employees from district offices in Niigata Prefecture and from Tokyo headquarters volunteered toaid recovery efforts in the earthquake-hit areas.

Rescuing People Trapped under a Collapsed
Gate

Employee’s Comment

Immediately following the earthquake, the gate to Fukoji Temple

Hardships andUnforgettable
Experiencescollapsed, which is near a company-owned apartment building in
Kashiwazaki City. Three people were trapped under the gatepost,
and three children and another adult were hurt by flying debris.
When our employee saw what had happened, he asked forassistance from a passing truck driver and other employees who

Atsushi Kuga

gathered in a parking lot next to the apartment building. They took

Administrative Section, Kashiwazaki District Officecare of the injured and cleared away debris so that a rescue team

It was 10:13 on the morning of July 16, 2007. I had just arrived

and an ambulance could get to the scene. A rescue team arrived anat the Kashiwazaki District Office when the Niigataken

hour after the earthquake and rescued all seven casualties.

Chuetsu-oki Earthquake struck. I had never felt anything like it.
The office quickly turned out a complete mess with things

Donating a Bell of Rehabilitation

scattered all over the floor. Fortunately we still had power; and I

In Kariwa Village, where the damage was the most severe, thewas astonished when a newsflash reported that the epicenter

Committee for Rehabilitation of Kariwa Village, which wasof the shock was Kashiwazaki, which was exactly where I was.

organized by community volunteers, planned a

In the aftermath of the earthquake, I experienced all kinds

prayer-for-rehabilitation event called Cheer Up Kariwa Festival.

of trouble. When water and gas were cut off to the Okubo

After reviewing many suggestions for attractions during the festival,

Dormitory, the day of taking those critical lifelines for granted

committee members decided to erect a Bell of Rehabilitation at thewas over; we no longer had the luxury of leading a normal life.

event site in the hopes that the village would make a quick recovery

Nevertheless, as we still had power, we were slightly better off

from the earthquake. Our Kashiwazaki

than those in the surrounding areas where power, water andironworks in Kashiwasaki City shared thegas were all cut off. I could only imagine how miserable theyidea and donated a handmade bell to themust have felt. Now that all utilities and lifelines have beencommittee; the bell—20 inches in diameter

restored, everyone is trying hard to get their lives back to normal.

and 24 inches tall—was made from a

After a while, I took part in volunteer work that thepiece of steel pipe used usually for drillingcompany initiated to help community residents restore theiroil wells, which was cut short and capped

lives. Requests for volunteers came primarily from older

at one end. It was a marvel of the welding,people living by themselves who were not strong enough to liftmachining and copper-plating

up furniture that had toppled over during the earthquake. I

technologies for which our Kashiwazaki
ironworks is noted.

volunteered to help these people clean up their homes. When
Donated Bell of Rehabilitation

When the Cheer Up Kariwa Festival was held on March 23,

some of them thanked me with tears in their eyes, I realized
they must have gone through a lot. At one time, an old lady

2008, people of all ages in the community rang the Bell of

who had been in a daze seemed to brighten up a bit after the

Rehabilitation, and they were full of emotion and so was everyone

cleanup was completed. To know that I was able to help her

else at the event, including those from the ironworks, who all

regain her strength made me happy.

listened to the rich sound of the bell.

I got to know a lot of people through this volunteer work.
The earthquake-hit area has been slowly, but steadily gettingback to what it used to be. But it is still not the same. I really
hope that our volunteer work made a difference in bringing
happy faces back to many people in Kashiawazaki.

INPEX CORPORATION CSR Report 2008

47

Stakeholder Relations

Communicating with Stakeholders

We keep our stakeholders informed of our business in aneffort to maintain trusting relationships with them
Investor Relations Activities
The Company ensures that we accommodate the perspective of ourshareholders and investors, by which we increase management

shareholders and investors, based on transparency, fairness andtransparency and incorporate their feedback into management.

continuity, by disclosing corporate information in a timely andDuring fiscal 2007, we gave two briefing sessions on financial

appropriate manner. We are committed to disclosing what isresults to financial analysts and institutional investors in Japan, held

required by the Financial Instruments Exchange Law and the Tokyo479 investor relations (IR) meetings inside and outside Japan, andStock Exchange Regulation, as well as other information that weoffered five tours to project sites in Japan and overseas for them. In

consider useful to investors when they make investment decisions,addition, we held briefing sessions for individual investors at six

in a timely and proactive manner. In 2006, the Company formulated

locations in Japan, and participated in three IR exhibitions.

rules for corporate information disclosure as a basis for establishingan internal system for managing and disclosing information, with theaim of ensuring that our listed securities are fairly evaluated andappropriately priced on the market. In addition, we have been
publishing our disclosure policy on our website since October 2008,
which describes our system for and policy on information disclosure
conceived from the internal rules.
Moreover, we are proactive in maintaining dialogues with

Project site tour in Japan

Briefing session for private investors

Keeping Stakeholders Well-Informed
Listening to Customers
Gas stations operated by our Domestic Project Division ran aprices, and requests for services we offered—was collected andsummer campaign from July 14, 2008 through August 31, 2008, in

analyzed. By sharing the findings with our franchisees and relevant

which customers were asked to fill in questionnaires in exchange fordepartments within the Company, we were able to upgrade oura chance to win small awards.

customer service and provide management assistance to ourInformation that customers provided—about themselves, howfranchise partners.

often and why they used the station, what they thought about gas

Participating in Conferences and Exhibitions
The Company participates in many international oil and natural gas

trade shows in Japan, including the Wide-Area Industry Festival inconferences and exhibitions held in oil- and gas-producing countries

Matsumoto held in Matsumoto City, Nagano Prefecture.

and elsewhere in the world in order to raise awareness amongindustry insiders and citizens in the regions.
At these conferences and exhibitions, we showcase ourbusiness activities in a visually appealing manner by displaying
photographs and illustrations on panels, and answer questions
about our management policy and ongoing projects.
During fiscal 2007, we attended 13 conferences and exhibitions
outside Japan, including the 15th International Conference &Exhibition on Liquefied Natural Gas (LNG15) held in Spain, and six

48

INPEX CORPORATION CSR Report 2008

INPEX booth at LNG15 in Spain

INPEX booth at Wide-Area Industry Festival
in MatsumotoCommunicating with Communities
Deepening Exchanges with Communities
The Group considers it important to maintain active exchanges with

communities for our business initiatives, operational policies, andcommunity residents and offers variety of programs for thatcare for the environment through those programs.

purpose. We are making efforts to gain support of local

In August 2007, 116 employees performed a
traditional folk dance at the Niigata Festival

In August 2007, we donated fireworks named“Brilliant Energy” for the fireworks show at the
Nagaoka Festival.

In September 2007, cumulative of 38 employees
volunteered their services in cleaning and donation
activities for the Akita National Athletic Meet.

In October 2007, four employees planted trees asvolunteers for the 6th Kashiwazaki-Kariwa
Tree-Planting Ceremony.

In October 2007, our employee gave a lecture at ajunior high school in Gunma Prefecture on the
global warming and environmental competitivenessof natural gas.

In November 2007, a Teiseki Drilling employee, aqualified advisor for incidents, giving a lecture on
safety measures on hot-spring fires.

Maintaining Dialogue with Communities●Keeping Communities Informed●Communicating with Municipalities

To respond to the growing demand for natural gas in Japan and to

Teiseki Topping Plant, an INPEX Group company, updates the

secure a sufficient supply capacity over an extended term, themunicipal authorities of Oogata District in Joetsu City on its

Company is building an LNG receiving terminal at Arahama Warf inenvironmental preservation activities twice a year, in accordance

Naoetsu Port in Joetsu City, Niigata Prefecture. When completed inwith an environmental preservation agreement that the company

2014, the 22-hectare (54-acre) terminal will have twosigned with Joetsu City in September 2006.

180,000-kiloliter tanks (capable of one additional tank).
In September 2007, the Company, Niigata Prefecture andJoetsu City signed a letter of intent, which stated that Niigata
Prefecture would revise its harbor planning in order to develop asite for the terminal by reclamation of the foreshore, and we would
work with Joetsu City to begin construction on the reclaimed land
the company would acquire from Niigata Prefecture.
Following the signing, we met five times with community
residents, the Joetsu Chamber of Commerce and Industry, and the
local fishermen’s cooperative to brief them on the construction plan.
We will continue to keep them informed.

Reporting session held in accordance with an environmental
preservation agreement with Joetsu CityINPEX CORPORATION CSR Report 200849

List of Indicators Based on GRI G3 Guidelines 2006

In preparing this report, we referred to the G3 Sustainability Reporting Guidelines published by the GRI in 2006. Below is a list of indicators,
based on the G3 Guidelines, that are covered in this report. For each indicator we provide the page of the report in which the corresponding information is discussed.
Item

Indicator

Relevant Page in
CSR Report 2008

1 Strategy and Analysis
Statement from the most senior decision-maker of theorganization about the relevance of sustainability to theorganization and its strategy

4,5

1.2

Description of key impacts, risks, and opportunities

6,7

2 Organizational ProﬁleRelevant Page in
CSR Report 2008

Economic Performance Indicators
EC1

Direct economic value generated and distributed,
including revenues, operating costs, employeecompensation, donations and other community
investments, retained earnings, and payments to capitalproviders and governments

AnnualReportEC2

Financial implications and other risks and opportunities forthe organization’s activities due to climate changes

4,5,19EC6Policy, practices, and proportion of spending on
locally-based suppliers at significant locations of operation

39

EC8

Development and impact of infrastructure investments
and services provided primarily for public benefit throughcommercial, in-kind, or pro bono engagement

43,45

EC9

Understanding and describing significant indirect
economic impacts, including the extent of impacts

Name of the organization

3

2.2

Name of the organization3

2.3

Operational structure of the organization, including main
divisions, operating companies, subsidiaries, and joint ventures2

2.4

Location of organization’s headquarters3

2.5

Number of countries where the organization operates,
and names of countries with either major operations orthat are specifically relevant to the sustainability issues
covered in the report3

2.6

Nature of ownership and legal form

3

EN1

Materials used by weight or volume

2.7

Markets served (including geographic breakdown, sectors
served, and types of customers/beneficiaries)

3

EN3

Direct energy consumption by primary source

22,23
22,23

2.8

Scale of the reporting organization

3

2.9

Significant changes during the reporting period regarding
size, structure, or ownership

2,3

2.10

Awards received in the reporting period

27

Reporting period (e.g., fiscal/calendar year) for
information provided

3

3.2

Date of most recent previous report (if any)3

3.3

Reporting cycle (annual, biennial, etc.)

3.4

Contact point for questions regarding the report or its
contents

3
Back cover

Report Scope and Boundary

22

EN8

Total water withdrawal by source

EN11

Location and size of land owned, leased, managed in, or
adjacent to, areas of high biodiversity value

27

EN12

Description of significant impacts of activities, products, andservices on biodiversity in areas of high biodiversity value

27

EN13

Habitats protected or restored

27

EN14

Strategies, current actions, and future plans for managing
impacts on biodiversity

27

EN16

Total direct and indirect greenhouse gas emissions by weight

EN18

Initiatives to reduce greenhouse gas emissions andreductions achieved

24,25

EN20

NOx, SOx, and other significant air emissions by type andweight

28,29

EN21

Total water discharge by quality and destination

EN22

Total weight of waste by type and disposal method

Report Proﬁle3.1

42,43,45

Environmental Performance Indicators

3 Report Parameters

24

29
30
30,31

3.5

Process for defining reporting content

5

EN23

Total number and volume of significant spills

3.6

Boundary of the report (e.g., countries, divisions,subsidiaries, leased facilities, joint ventures, suppliers)

3

EN24

31

3.7

State any specific limitations on the scope or boundary of
the report3

Weight of transported, imported, exported, or treatedwaste deemed hazardous under the terms of the Basel
Convention Annex I, II, III, and VII, and percentage oftransported waste shipped internationally

3.11

Significant changes from previous reporting periods in thescope, boundary, or measurement methods applied in thereport3

EN26

Initiatives to mitigate environmental impacts of products
and services, and extent of impact mitigation

25,26

EN28

Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance withenvironmental laws and regulations

23

EN29

Significant environmental impacts of transporting products
and other goods and materials used for the organization’s
operations, and transporting members of the workforce

25

EN30

Total environmental protection expenditures andinvestments by type

GRI Content Index
3.12

Table identifying the location of the Standard Disclosuresin the report50

Assurance
4 Governance, Commitment, and Engagement
4.1

Governance structure of the organization

4.3

For organizations that have a unitary board structure, state
the number of members of the highest governance bodythat are independent and/or non-exclusive members

AnnualReport4.5

Linkage between compensation for members of thehighest governance body, senior managers, andexecutives, and the organization’s performance

AnnualReport4.8

Internally developed statements of mission or values,
codes of conduct, and principles relevant to economic,
environmental, and social performance and the status of
their implementation

4,5,198

Externally developed economic, environmental, and social
charters, principles, or other initiatives to which theorganization subscribes or endorses

43

4.13

Membership in associations (such as industry associations)
and/or national/international advocacy organizations

19

Stakeholder Engagement

INPEX CORPORATION CSR Report 2008

Education, training, counseling, prevention, andrisk-control programs in place to assist workforce
members, their families, or community members
regarding serious diseases

34

Social Performance Indicators
SO1

PR5

4.12

List of stakeholder groups engaged by the organization

LA8

Nature, scope, and effectiveness of any programs andpractices that assess and manage the impacts ofoperations on communities, including entering, operating,and exiting

42

Product Responsibility and Performance Indicators

Commitments to External Initiatives

4.14

22,23

Social Performance Indicators

Governance50

Indicator

5 Management Approach and Performance Indicators

1.1

2.1

Item

6,7

Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction46Third-Party Comment

Third-Party Comment on
CSR Report 2008

One Akiyama
President
Integrex Inc.
A CSR report is designed not only to give an update on a

2. Things about the Report that Need Improving

company’s CSR activities, but also to reaffirm its commitment to

I can see that the PDCA cycle is working for the HSEcarrying out a PDCA (“Plan-Do-Check-Act”) management cycle tomanagement system, and suggest that the Group applies theaccomplish its corporate mission. I kept this perspective in mind

cycle to other CSR components by giving reviews of them andwhen making comments on the CSR Report 2008 of INPEX

future actions in the Report. For instance, the Human Resources

CORPORATION (referred to as the “Report” below).

System discussed in the “Valuing Our Employees” chapter
sounds impressive. But the Group needs to review how the

1. Positive Things about the Reportsystem is being utilized and contributes to the realization of theThis is the first CSR report that the newly integrated INPEX“worker-friendly environment” mentioned in the Corporate Social

CORPORATION has published. It is worthy of note that the

Responsibility Policy, and to publish its quantitative findings in the

President delivers a strong message and commitment at theReport. I would also like to see in the Report reviews of

beginning of the Report as to what the Group must do toengagements with other stakeholders, and how to make themaccomplish its corporate mission—providing customers with amore effective, so that we will have a better idea of the progress

stable and efficient supply of energy so as to bring a better quality

they make based on the PDCA cycle for continuous improvement.

of life to communities.

I hear that the Group has already begun to work on it, and I hope

The chapter “Business Activities and Broader Considerationfor Stakeholders” signifies that the Group’s CSR activities are an

to see results in the CSR Report 2009.
Another thing is that, as the CSR activities that Japanese

integral part of its business operations by illustrating how it

companies conduct overseas have become increasingly

engages stakeholders in each phase of an operation.

important, I would like the Group, with its many ongoing projects

The idea of including in the Report a transcript of a round-tablearound the world, to provide a more detailed report on its

discussion among employees is a very good one, as it shows how

challenges and initiatives for CSR outside Japan, as well as on

employees look at CSR. In particular, when one employee said:

environmental performance data for overseas projects.

“We have something fundamental in common, and that’s the

In addition, I suggest that the Group consider using its Web

commitment to contributing to society through a stable supply ofsite more effectively to complement the printed Report by making

energy. In a sense, the upside of the merger is that we now havedetailed environmental performance data and in-depth reports

a larger number of like-minded people.” This is a positive

available online to those who are interested in them.

indication that employees of the merged company have embraced
the all-important corporate mission.

3. Expectations for the GroupI also give high marks to the Group for implementing systems

As we face risks of a global magnitude—such as climate changethat support collective CSR efforts, such as a compliance systemcaused by global warming—business activities by a company thatand an update on the human resources management system.
I can tell from the activity reports that outline HSE goals,

contribute to a sustainable society play an increasingly importantrole for the sustainable growth of the company itself. As an

performance, evaluation and goals for the next fiscal year that the“integrated energy company that brings a better quality of life to

PDCA cycle is working for the HSE management system. It is

communities,” I expect the Group to continue to make a tangible

also good to disclose negative information about environmental

contribution to addressing global issues through diversified

incidents and to give a faithful update on follow-ups to pastbusiness activities.

incidents.

INPEX CORPORATION CSR Report 200851

Corporate Strategy & Planning Unit
Research & CSR Group
32th Floor, Akasaka Biz Tower,
5-3-1 Akasaka, Minato-ku, Tokyo, 107-6332, Japan
Tel: +81-3-5572-0231
http://www.inpex.co.jp/english/index.html

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