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Integrated Report 2023
For the period ended
December 31, 2023

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Introduction

Our Mission

We are committed to contributing to thecreation of a brighter future for society throughour efforts to develop, produce and deliver
energy in a sustainable way.
Sustainability Principles

The INPEX Group is committed to continue
fulfilling its corporate social responsibilities
through its business activities as a credible
company while increasing its corporate value
sustainably over the medium- to long-term.

Financial andOther Information

001

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

About Our Reporting
Reporting Highlights
We have incorporated information with the aim of straightforwardly conveying our business activities within the reporting period from both financial and non-financial perspectives. In editing this Integrated Report, we aimed to straightforwardly communicate ourfinancial strategy, investment strategy, and capital allocation in an integrated manner, witha focus on implementing management that is conscious of the cost of capital and shareprice and have included a dialogue between the Senior Vice President of Finance & Accounting and the Senior Vice President of Corporate Strategy & Planning on page 27. It
also provides more information on corporate governance and safety management initiatives and other ESG factors compared to previous editions. We will continue working toenhance the information covered by our Integrated Report as a communication tool contributing to dialogue with our stakeholders.

Communication Tool Map

Financial Information

Non-financial Information
Integrated Reports
Securities Reports(available in Japanese only)

Scope of Coverage
Period covered: January 1, 2023, to December 31, 2023
Organizations covered: INPEX CORPORATION on a non-consolidated basis and the INPEX
Group
Accounting Standards: International Financial Reporting Standards (IFRS) since the fiscal
year ended December 31, 2023. (Japanese Generally Accepted Accounting Principles(“Japanese GAAP”) until the year ended December 31, 2022)
Reference Guidelines
We have referred to guidelines such as the International Integrated Reporting Council’s(IIRC’s) International Integrated Reporting Framework and the Guidance for Collaborative
Value Creation issued by Japan’s Ministry of Economy, Trade and Industry (METI).
Publication
July 2024

FORWARD-LOOKING STATEMENTS
This Integrated Report includes forward-looking information that reflects the Company’s plans and expectations.
Such forward-looking information is based on the current assumptions and beliefs of the Company in light of the information currently available to it, and involves known and unknown risks, uncertainties and other factors. Such risks,
uncertainties and other factors could cause the Company’s actual results, performance, achievements or financial
position to be materially different from any future results, performance, achievements or financial position expressedor implied by such forward-looking information. Such risks and uncertainties include, without limitations, fluctuationsin the following:
the price of and demand for crude oil and natural gas;exchange rates; andthe costs associated with exploration, development, production and other related expenses.
The Company undertakes no obligation to publicly update or revise any information in this Integrated Report(including forward- looking information).

Earnings Reports

Sustainability Reports

Financial Results Investor
Meeting Materials

Corporate Governance Reports

Notice and Material of Ordinary General Meetingof Shareholders
Shareholder Newsletters(available in Japanese only)

INPEX’s Website (Investor Relations)

Corporate Brochures

002

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Contents

001 Introduction

001

Our Mission/Sustainability Principles

002

About Our Reporting

003

Contents

004 Value Creation

005
011
013

Message from the President & CEO
INPEX’s Business
A History of Value Creation

015
017
018

INPEX Strengths
Value Creation Process
Financial and Operating Highlights

022

Sustainability Highlights

024 Growth Strategy

025
026

INPEX Vision @2022 Long-term Strategy
INPEX Vision @2022 Medium-term
Business Plan
Dialogue: Senior Vice President, Finance& Accounting and Senior Vice President,
Corporate Strategy & Planning
Financial Information by Segment
Milestones and Business Policies by Business
Field: Ichthys Project and O&G Business

035

Project Overview: O&G Business

047

Project Overview:
5 Net Zero Businesses

045

Milestones and Business Policies by 051
Business Field: 5 Net Zero Businesses

Sustainability Management
Risk Management
Sustainability Material Issues:
Targets and Achievements
Climate Change

064
066
068
069

Health & Safety
Environment
Local Communities
Respect for Human Rights

070
073
074
078

Human Capital
Promotion of Diversity
Roundtable with Outside Officers
Corporate Governance

11-Year Financial Information
Management’s Analysis of Financial Condition,
Financial Results and Cash Flows099

INPEX Green Finance
Annual Report

100

Oil and Gas Reserves andProduction Volume
Corporate Information

027

033
034

053 A Company Capableof Sustainable
Development

054
055
056
060

093 Financial and Other

Information

094
096

035
037
039
041
043

Ichthys LNG Project
Abadi LNG Project
Abu Dhabi
Norway Projects
Japan

047
048
049
050

103

Hydrogen and Ammonia
CCS/CCUS/Methanation
Renewable Energy
Forest Conservation

Technical Strategies003

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

004

INPEX CORPORATION
Integrated
Report 2023 Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Message fromthe President & CEO

We will promote thesupply of energy witha long-term view tobring abouta sustainable future.
Changes in the energy landscape have clouded the direction in which we must move to realize a net zero carbon society, and we must transition while considering
the future. Takayuki Ueda spoke about the transition
INPEX plans to execute.

Takayuki Ueda
Representative Director,
President and CEO

005

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

006

Message from the President & CEO

Formulating a solution to theemerging trilemma
In recent years, the environment surrounding the energy
industry has changed dramatically. Until a few years ago,
the industry’s primary challenge was how to transition to
decarbonization in response to climate change issues.
Since Russia’s invasion of Ukraine, however, soaring oil
and gas prices and a tight supply-demand balance havecombined to spark the emergence of a trilemma: the emphasis is on ensuring energy security and affordability(stable quantities and prices), but these two factors must
be balanced against sustainability—or environmental
considerations toward decarbonization—and simultaneously addressed.
Amid these conditions, the term “transitional fuels”
was used in the final agreement document of the 28th
Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) held in
Dubai, United Arab Emirates, in November and December 2023. In terms of the transition, natural gas—particularly liquefied natural gas (LNG), which, among fossil
fuels, emits a relatively low volume of CO2 when burned
compared with oil or coal—is expected to play a key role.
This is the industrial sector’s shared understanding.
Meanwhile, perceptions have shifted regarding the path
to a net zero carbon society. There is a growing recognition
that diverse pathways need to be considered. The speed
and methods employed will have to reflect the circumstances and conditions of each country and region. Certain
countries and regions, for instance, could accelerate theshift to renewable energy sources. In countries and regionsthat rely on fossil fuels, co-firing of ammonia to reduce CO2
generation will be necessary during the transition.

In light of these changes, we at INPEX will fulfill our
responsibility to provide a stable supply of energy. First,
we will firmly expand our business with a focus on LNG. At
the same time, we will reinvest revenues into clean energy
development, with the aim of becoming a world-leading
company as a pioneer in energy transition.

LNG as transitional energy
Significant growth is forecast in global demand for LNG,
particularly in Asia. One reason for this is that althoughmany Asian countries have traditionally produced and consumed natural gas locally, economic development has resulted in demand growth outpacing production within the
Asian region. LNG imports from outside the region are expected to rise in order to satisfy this demand. The second
reason is linked to the spread of renewable energy. Demand for natural gas is likely to increase as fuel for backup
power sources to compensate for the variability of renewable energy power generation.
Since the invasion of Ukraine, European countries that
had been importing oil and gas through pipelines from
Russia are now moving to accept LNG imports with theaim of reducing their dependence on Russia.
LNG is the pillar of INPEX’s core oil and natural gas
business, whose cornerstone is the Ichthys LNG Project,
for which operations were launched in 2018 off the coastof Australia. The project generates approximately 8.9 million tons of LNG annually, more than 10% of the LNG Japan imports each year. Over 70% of this amount is
supplied to Japanese customers.
The Ichthys LNG Project serves as the foundation of
our business, generating about 70% of our profits, butfrom a management perspective, we need to shift awayfrom this overly focused approach and reduce our dependence on Ichthys. Based on this thinking, we have beenworking to launch the Abadi LNG Project in Indonesia as
the next growth driver, and we aim to begin production
around 2030. We are planning for annual LNG productionof 9.5 million tons—the same scale as Ichthys—and wewill provide it not only to Japanese customers but also tosatisfy the growing LNG demand in Asia.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

007

Message from the President & CEO

Developing, producing, anddelivering energy in a sustainableway
As stated in our Mission, “we are committed to contributing to the creation of a brighter future for society throughour efforts to develop, produce and deliver energy in asustainable way.” The operation of both the Ichthys andAbadi projects will contribute to satisfying the increasing

Despite the environmental characteristics of LNG being superior to those of oil and coal, CO2 is emitted during
the LNG combustion process. To reduce emissions, we
intend to introduce carbon capture and storage (CCS)—
one of our 5 net zero businesses—into our LNG projects
to mitigate emissions. CCS is a technology for geologicalstorage of CO2 that has been separated and captured.
The Ichthys LNG Project has been awarded a CCS assessment block by the Australian government, and we plan todrill wells and conduct a storage assessment in 2024. For
the Abadi LNG Project, our intention from the beginninghas been to introduce CCS with a view to decades-longproduction, and we will proceed while consulting with theIndonesian government.
By making LNG—which boasts excellent environmental characteristics—even cleaner through the introductionof CCS developing renewable energy, hydrogen, ammonia, and other clean energy sources as part of our 5 net
zero businesses, we hope to establish INPEX as a major
player in the energy industry today and into the future.

Advantages demonstrated by the
Abadi LNG Project
demand for LNG, which is seen as a transitional energy
source, and is nothing less than the realization of our Mission. In terms of developing, producing, and delivering
energy in a sustainable way, however, it will take further
efforts to reduce CO2 emissions and realize net zerocarbon.

The start of operations of the Abadi LNG Project is a turning point for the future of INPEX, and we have great expectations for it as a new growth pillar. With the Ichthys
LNG Project, INPEX became the first Japanese company
to serve as the operator of a large-scale LNG project, andthrough its success, we secured a tremendous reputationand trust both in Japan and abroad. Moreover, by acting
as operator of the Abadi LNG Project and effectively

doubling our supply capacity, we will be able to rapidly
strengthen our presence in the energy market and further
enhance our position. At the same time, we must beaware of our even more significant social responsibility tosatisfy the world’s energy demand and support a stablesupply.
We believe that the Abadi LNG Project will allow us todemonstrate unique advantages. One such advantage isthe ability to leverage the technological capabilities, human resources, and various experience and knowledge
that we cultivated through the Ichthys LNG Project. The
deployment and effective use of these resources will ensure the smooth launch and operation of the Abadi LNG
Project.
The other advantage lies in the operating conditions,which center on extraction and delivery work in Indonesia.
With the global situation evolving and geopolitical risk
continuing to spread, it will be necessary to avoid risks byproducing and delivering LNG in a way that is as close as
possible to a “local production for local consumption”
model. The large demand for LNG within Indonesia andthe expected concentration of other customers mainly inJapan and Asia mean that the Abadi LNG Project will be
supplying LNG within a compact area, making its value
very significant.
In the fiscal year ending December 31, 2024 (fiscal
2024), we intend to conduct a variety of offshore and onshore surveys and bid on front-end engineering design(FEED) work while pressing forward with marketing andfinancing initiatives.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

008

Message from the President & CEO

Focus themes and future
developments in our 5 net zerobusinesses
With its oil and natural gas business at the core, INPEX
delivers solutions that contribute to the reduction of CO2
emissions in five areas: CCS, renewable energy, hydrogenand ammonia, forest conservation, and carbon recycling
and new business opportunities, with a view to achievinga net zero carbon society. Our long-term strategy calls for
growth investment of up to 1 trillion yen in these 5 net
zero businesses from fiscal 2022 to fiscal 2030.
All these fields are vital for the future of the energy
business, but the CCS field requires top priority. As explained earlier, CCS has been introduced in the Ichthys
and Abadi LNG projects, and for reasons including its
connections to the hydrogen and ammonia business, it
has significant synergy with other INPEX businesses. CCS
is currently the only technology capable of large-scale
CO2 emission reduction, is being implemented in numerous countries, and has tremendous potential for growth.
For the time being, INPEX will leverage CCS to reduce
CO2 emissions from its own operations, but going forward, it intends to respond to other companies’ CO2 reduction needs by turning CCS itself into a business.
Renewable energy is the next major area of focus.
Our commercialized projects, most of which are overseas, include offshore wind power initiatives in Europe
and geothermal power activities in Indonesia and Japan.
In Australia in July 2023, we established a joint venturewith Enel Green Power, Europe’s largest renewable energy firm. We will construct a framework that is not simply a power generation business but encompasses theentire renewable energy value chain—from planning toconstruction, power generation, retail, and storage—
and is also profitable.
As true clean energy sources that do not emit CO2
when burned, hydrogen and ammonia are our focus. We
are also taking on cutting-edge initiatives. With regard
to hydrogen, we are building a plant in Kashiwazaki Cityin Japan’s Niigata Prefecture to demonstrate bluehydrogen production, which uses CCS to reduce theCO2 emitted when hydrogen is produced from naturalgas. Concerning ammonia, we are involved in a joint
project with companies overseas to commercially produce low-carbon ammonia in the US state of Texas. We
hope to be at the forefront in the market as a first moverin this domain, but this will require a certain level ofINPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

009

Message from the President & CEO

investment and risk-taking. Demand for hydrogen andammonia, however, is expected to arise among andaround existing customers of oil and natural gas, so we
believe that as a first mover, we can establish a dominantposition by launching the market together with thesecustomers while also leveraging the supply routes andvalue chains of existing businesses.
Innovation is also crucial to the future of the energy
business. We will need to develop technology to realize
cleaner energy and reduce costs. As such, in January2024, we launched the Innovation Division and established a framework to focus our efforts on acceleratingenergy transformation (EX).

Adopting management that is
conscious of cost of capital andstock price
While impairment losses caused a year-on-year decline
in profit in fiscal 2023, INPEX recorded the second highest profit in its history, buoyed by favorable oil prices
and foreign exchange rates. Judging from our current
share price, however, we recognize that the stock market’s assessment of INPEX has room for improvement
and that we need to work to increase the price bookvalue ratio (PBR), which is still under 1.0. Meanwhile, we
believe that stock market valuations do not fully reflect
all aspects of corporate value.
In response to a request from the Tokyo Stock Exchange, which asks that listed companies “implement
management that is conscious of cost of capital and stock
price,” we conducted a series of internal discussions

through which we identified the following three issues affecting stock market valuations.
The first issue is that our corporate management efficiency falls short when compared to the return on equity(ROE) and other performance indicators of supermajors(international oil supermajors). The second centers on
concerns about our future potential due to the risk of fossil fuel-related assets becoming stranded. And the third isuncertainty regarding the company’s outlook for enhanced shareholder returns.
To address these issues, we will first include return on
invested capital (ROIC) in measurement and evaluation to
improve capital efficiency and maintain a level exceeding
our weighted average cost of capital (WACC). In terms ofour business strategy, we will work to capitalize on themedium- to long-term LNG demand expansion. In parallel with this, we will clearly set forth the potential of theclean energy field—our area of focus—and, through dialogue with investors, seek to earn recognition and widespread understanding in the stock market. INPEX intends
to implement these measures in an integrated manner,
together with the increase of shareholder returns, and we
expect this to lead to an appropriate assessment of corporate value.

Financial and capital policies in thenext Medium-term Business Plan
Looking at financial and capital policies, interest-bearing
debt has increased due to our priority investment in the
Ichthys LNG Project—which we have been undertaking
for some time—and where financial soundness is concerned, this has become an issue. For this reason, our current Medium-term Business Plan 2022–2024 set forth thefollowing priorities in terms of the allocation of operating
cash flow: reducing interest-bearing debt first, strengthening shareholder returns next, and then making growthinvestments.
During the initial two years of the plan’s implementation, however, owing to rising oil prices and the steady
operation of the Ichthys LNG Project, our performance
was strong, enabling us to generate operating cash flow
surpassing initial expectations. Operating cash flow for
the three-year period of the plan—including the forecast
for fiscal 2024—is projected to total 2.85 trillion Japaneseyen, an upward revision of over 1 trillion Japanese yen.
We have succeeded in making significant progress in reducing interest-bearing debt, and due to the low net borrowings, our current net debt-to-equity (D/E) ratio is 0.3,
already healthy enough for us to be considered financiallysound.
The next Medium-term Business Plan, set to begin in
fiscal 2025, will be developed in the coming months. In
that plan, regarding future financial and capital policies,
the operating cash flow allocation policy will be adjusted
in light of these circumstances, with higher priority being
given to increasing shareholder returns and growthinvestment.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

010

Message from the President & CEO

Establishing a governancestructure that contributes toenhancing corporate value
In fiscal 2024, the INPEX Board of Directors became a10-member organization, with outside directors accounting for half (five) of the members. The Nomination andCompensation Advisory Committee, an advisory body to
the Board of Directors, had been chaired by an internal director (then Chairman). Since fiscal 2024, however, it has
been chaired by an outside director and comprises threeoutside directors and one internal director (President). The
aim of these structural changes is to enhance andstrengthen corporate governance and improve the effectiveness and vitality of the Board of Directors by reinforcing
the monitoring of management by directors with external
perspectives and effectively applying their counsel.

The Board of Directors regularly engages in frank exchanges of opinions and lively discussions. We have lunch
together following each Board meeting, but the gatherings regularly become working lunch meetings because
our discussions run beyond the scheduled time. We haveinvited people with varied backgrounds and expertise toserve as outside directors in a manner that encompasses
the Board of Directors’ skill matrix. This includes experienced management professionals with expertise in theenergy industry, internationally active attorneys, diplomats, and experts in sustainability. They have provided
very useful comments and advice regarding global business development and decisions related to major
investments.
The Nomination and Compensation Advisory Committee holds discussions, particularly regarding succession
planning. It confirms the qualifications and requirementsof candidates for Representative Director, President andCEO and the appropriateness of the candidate selection
process, among other matters, while laying the groundwork for developing the next generation of management.
Since our company’s directors serve one-year terms, I will
be serving in my current position for the next year.
In times of rapid change, checks on management basedon diverse value systems and perspectives are essential to
a company achieving sustainable growth. We will establish
a governance structure that contributes to enhancing corporate value by proactively applying the opinions of outside directors, who represent our stakeholders.

Encouraging personnel growthand success and turning them into
a company strength
Approximately 40% of INPEX employees are foreign nationals. We believe that one of the singular aspects of ourhuman capital management is that we leverage this diversity in our global business development. In addition to hiring foreign nationals locally, we also actively provide themwith the training required to excel in the global arena andgive them opportunities to participate in various projects
around the world. INPEX needs self-motivated people who
can initiate and develop projects independently regardlessof where they are in the world, and we are committed toencouraging their growth and success—what we see as thestarting point for value creation.
Meanwhile, possibly attributable to the popular perception of the energy industry as a “masculine stereotypical,”the proportion of female employees is only about one-fifthof the total workforce, and this imbalance remains a challenge. Creating a company where women can play activeroles also fosters a favorable workplace for all employees is
expected to heightened employee engagement. Basedon this recognition, we established a task force for women’s advancement in fiscal 2024, and female employees aretaking the lead in reform efforts.
We have also introduced a return-to-work program forall employees to welcome back motivated employees who
had left INPEX due to unavoidable personal reasons.
The flexibility to embrace diversity is a strength for an
enterprise and raises its corporate value. INPEX aims to be
a company where all employees are individually aware of
their roles in the supply of energy, which contributes to thecreation of a brighter future for society, while at the sametime broadening the scope of their activities.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

INPEX’s Business
INPEX is developing its oil and gas business and its net zero businesses.
In the oil and gas business, we will fulfill our responsibilities for the development and supply of energy bypromoting a more resilient and cleaner business.
In each of the 5 net zero businesses, we aim to secure our position as a major player.
CCUS

1

ExploreWe use cutting-edge technologies todiscover oil and natural gas reservoirs
deep underground.

P.048

3

Produce

The extracted oil and natural gas areprocessed for shipping.

2

Drill

Production facility

Renewable energy

P.049

We drill wells with drilling rigs to extract
oil and natural gas.

011

012

INPEX CORPORATION Integrated Report 2023

4Transport

Oil and natural gas are delivered tocustomers.

Terminal

5

Use

Energy is essential and fundamental to
our everyday lives.

LNG thermal power plant

City gas

Forest conservation

P.050

Methanation

P.048

Oil refinery

Hydrogen and ammonia

P.047

Contributing to the creation of abrighter future for society

Realizing a net zero carbon society
We provide solutions that contribute to the reduction ofgreenhouse gas emissions toward the realization of a net
zero carbon society.

INPEX CORPORATION Integrated Report 2023

Introduction

A History of Value Creation
INPEX has developed as a company built around upstream businesses consisting of the exploration, development and production of oil and natural gas.
Going forward, we will contribute to the creation of abrighter future for society through the stable supply of
diverse and clean energy sources, from oil and natural
gas to hydrogen and renewable energy-derived electricity, while sustainably increasing our corporate value.

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

1942

1941

Financial andOther Information

In production

Start of oil and natural gas production in Japan

Teikoku Oil, Co., Ltd. founded

1940

INPEX has been engaged in the exploration, development and production of oil and natural gas in Japan since 1942. At its Minami-Nagaoka Gas Field, one of the largest of its kind in Japan,
production has been continuing since 1984. In 2013, INPEX commenced operation of the Naoetsu LNG Terminal, which receives
LNG from overseas. After re-gasification and calorific value adjustment, it is transported to customers through our natural gas pipeline
network. The terminal began receiving LNG from the Ichthys LNG
Project in 2018.
P.043

1966
INPEX Corporation founded

1972

1950
Block returned in 2017

Start of production at oil and gas fields in the
Offshore Mahakam Block, Indonesia
INPEX acquired an interest in the Offshore Mahakam Block by concluding a production sharing contract with the Indonesian government in 1966. Then, production of crude oil and natural gas started
there in 1972. The produced natural gas was supplied to the Bontang LNG Plant. The Bontang LNG Plant was one of the world’s largest LNG production plants and had stably supplied LNG tocustomers in Japan and other parts of Asia over many years, while
significantly contributing to the growth of INPEX.

1960

1980

1973
Japan Oil Development
Co., Ltd. founded1982

In production

Start of production at project in Abu Dhabi,
United Arab Emirates

1970

013

INPEX acquired a participating interest in the ADMA Block offshore Abu
Dhabi in the United Arab Emirates in 1973, and in 1982, began production in the Upper Zakum Oil Field, the largest oil field in this sea area.
Production has been steadily continuing, following the launch of production at the Umm Al-Dalkh Oil Field in 1985 and the Satah Oil Field in
1987. In 2015, INPEX acquired an interest in the Abu Dhabi Onshore
Concession and has been continuing production there.
P.039

2018

In production

2008

1990

014

Founded INPEX CORPORATION

Start of production at Ichthys LNG Project, Australia

2021

In 1998, INPEX acquired an interest in the block where the project isnow located. Following development studies, INPEX announced its
final investment decision (FID) in 2012. After the completion andcommissioning of production facilities, the project started production in 2018 and has been continuing stable operation. This is thefirst large-scale LNG project for which a Japanese company serves
as the operator. The project has taken INPEX one step closer to thenext stage of growth.
P.035

Change of Japanese corporate nameto Kabushiki Kaisha INPEX

2000

2021

Announcement of strategy for 5 net zero businesses
In 2021, INPEX announced its Business Development Strategy: Towards
a Net Zero Carbon Society by 2050, outlining climate change response
goals and business strategy towards a net zero carbon society. INPEX
subsequently set out specific goals in its Medium-term Business Plan
2022–2024 and has been working towards them in the 5 net zerobusinesses.

2010
Medium- to Long-term Vision of INPEX
Ichthys and our growth over the next decade

Vision 2040 Delivering Tomorrow’s Energy Solutions
Medium-term Business Plan 2018–2022

2020

2023

Reduction of CO2
emissions from oil
and gas operations(CCUS)

Hydrogen andammonia

Production to start in the early 2030s

Approval of the revised development plan for
Abadi Gas Field, Indonesia
INPEX acquired an interest in the Masela Block in Indonesia’s Arafura Sea through an open bid in 1998. The drilling of the first exploratory well in 2000 led to the discovery of the Abadi Gas Field. This
was the first time that oil and natural gas reserves had ever been
discovered in the Arafura Sea of Indonesia. Our revised development plan was approved in 2023, and we will work on necessary
preparations for a final investment decision (FID).
P.037

5 net zerobusinesses

INPEX Vision @2022(Long-term Strategy
and Medium-term Business Plan 2022–2024)

Carbon recycling
and new business
opportunities

Renewable energy

2030

Forest conservation

Vision for 2030 and
2050
P.025

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

INPEX Strengths

Experience as the company to successfully operate
the Ichthys LNG Project
As the first Japanese operator of a large-scale LNG project, we have gained a wealth of experience and accumulated important knowledge and expertise.

Employer of Choice

Technical capabilities and project management skills

For INPEX Australia to continue being a desirable workplace, build a
corporate culture that values the spirit of continuously taking onchallenges and helps retain talented global human resources.

We completed the construction of four large-scale facilities (onshore
LNG plant, CPF, FPSO, subsea pipeline) involving 41 countries, 3,300
companies, and 30,000 people, commenced operations in 2018, andare continuing stable operations.

Australia’s labor market is fluid. In this context, INPEX Australia aims to be an Employer of
Choice. This initiative has spread and led to an increase in people who currently want to workat or continue working at INPEX Australia.

The Ichthys Gas Field is located off the northwrstern coast of Australia, and at the time, othercompanies also were discovering new gas fields in the vicinity. Therefore, we were asked tojointly develop an LNG facility, but it was challenging to make a final investment decision considering various commercial, technical, and other perspectives. Under these circumstances, theNorthern Territory government with its good business environment approached us saying thatDarwin was “Gas Ready,” which enabled us to make a sound final investment decision and a plan
to lay 890 kilometers of subsea pipeline to connect the Ichthys Gas Field to Darwin.

Partner of Choice

Building a global gas value chain

Building relationships of trust with stakeholders, including
governments, industry and local residents

With the start of LNG shipment from Ichthys to the Naoetsu LNG
Terminal in 2018, we organically linked LNG produced in Australia withnatural gas infrastructure in Japan and took a huge leap towardbuilding a global gas value chain.

INPEX Australia aims to be a Partner of Choice that others want to team up with. It is important
to cooperate with various stakeholders to address the wide range of challenges involved inpromoting business.

015

016

INPEX CORPORATION Integrated Report 2023

INPEX Strengths

Related pages

Global human resources with diverse values
We promote a range of HR policies from a global perspective todiversify our workforce and develop human resources that canshare global values. In addition, we have established a “task force
for women’s advancement” to promote women’s participationfrom 2024. We are working to maximize organizational performance by ensuring the diversity of our talent pool.

Percentage of
foreign employees

Promotingfemale employee

Close partnerships with gas- and oil-producing nations andsupport from the Japanese government
We have been participating in projects in Indonesia, Abu Dhabi and Australia since 1966, 1973 and1986, respectively, and have built long-term relationships with governments and other various
stakeholders in these countries.
In Japan, we use financial support from the Japan Organization for Metals and Energy Security(JOGMEC), the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment
Insurance (NEXI) and other organizations to promote oil and natural gas upstream projects. We
also help develop policy frameworks and provide other assistance for the sectors of our 5 net zerobusinesses and promote the appropriate use of financial support from the New Energy and Industrial Technology Development Organization (NEDO), JOGMEC and others.

Global gas value chain
The oil and natural gas that we produce worldwide accounts for about 10 percent of Japan’s annual energy consumption. INPEX sells the oil and gas it produces to customers across the globe.
We conduct our gas business using our global gas value chain (overseas production–Naoetsu LNG
Terminal–domestic pipeline–customers). LNG received from the Ichthys LNG Project and otheroverseas projects at the Naoetsu LNG Terminal, together with natural gas produced at the Minami-Nagaoka gas field, are sold to customers in Japan through a natural gas trunk pipeline network
stretching approximately 1,500 kilometers across the Kanto, Koshinetsu and Hokuriku regions.

P.070–072(2023)

41.6%

participation

Promotion ofDiversity
P.073

Technological capabilities and project management skills
We have gained experience as an operator of oil and natural gas projects in Japan since 1941.
Thereafter, since acquiring exploration acreage in Australia in 1998, we have accumulated experience in exploration, development, production and project management of a large-scale LNG
project as operator of the Ichthys LNG Project. In addition, we established the INPEX Research
Hub for Energy Transformation (I-RHEX) in 2022 and are promoting research and developmentwith the aim of increasing efficiency and achieving low-carbon operations in the oil and natural gas
business, as well as acquiring advanced technologies.

Sustainability
Human Capital

Operator
experiencein Japan
Since

1941

Operator
experience inIchthys
Since

1998

R&D activity
expenses
2024 forecast

Approximately

Technical Strategies

Milestones andBusiness Policies by
Business Field
Project Overview

Start ofparticipation inprojects in
Abu Dhabi

Start ofparticipation inprojects inAustralia

1966

1973

1986

Net oil and natural gas
production volume

Ichthys LNG
production capacity(fiscal year ended
December 31, 2023)
Equivalent to approximately 10% ofJapan’s annual energy consumption

tons
8.9permillion
year
Equivalent to more than 10
percent of Japan’s annual
LNG import volume

P.034–050

20.0 billion JPY

Start ofparticipation inprojects inIndonesia

thousand630
barrels per day

Milestones andBusiness Policies by
Business Field
Project Overview

Total length ofnatural gas pipeline
in Japan

1,500 kmP.051–052

P.034–050

Project Overview(Ichthys)P.035–036
Project Overview(Japan)P.043–044

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Value Creation Process
Our Mission

We are committed to contributing to the creation of a brighter future for society through our efforts to develop, produce and deliver energy in a sustainable way.

Global Developments

External
Environment

Risks

Energy trilemma• Energy security• Equitable access to energy• Sustainable global environment

Rising geopolitical risk
Raising of Japan’s independent
development ratio of energy

Inputs人的

Human Capital

Opportunities

Businesses

Outputs

INPEX Vision @2022
Long-term Strategy and Medium-term Business Plan

Energy supply indispensable
to people’s livelihoods

P.025–026

Products

Diverse human resources
自然

Oil, natural gas, wind,geothermal, solar

383

Economic Values
 ontinuous improvement
Cof enterprise value andprofit returns

thousandbarrels per day

社会Social Values
Stable supply of energy
Contribution to local
communities andcreation of employment
opportunities

million cubicfeet per day(Barrels of oil equivalent: 248 thousandbarrels per day)

Production and supply
facilities

Oil andNatural Gas

Total oil and natural gas

5 Net ZeroBusinesses

630

Close relationships withstakeholders

thousandbarrels per day

PowergeneratedIntellectual Capital
Technologicalcapabilities and R&D

Environmental Values

環境

Cleaner energy upply of natural gas as aScleaner source of energy• 
Cleaner oil and natural gas• 
Reduction of greenhousegas emissions• 
Conservation of biodiversity•

Renewable energy

知的

1,542,575

MWhGreenhouse gas emissions

Sustainability Material Issues

財務

Scope 1
Human
capitalGovernanceStrong financial baseCompliance
Note: Results for the fiscal year ended
December 31, 2023

経済

1,304

Manufactured Capital

Financial Capital

Outcomes

Natural gas

製造

Social and
Relationship Capital

Cleaner oil and natural gas businessDevelopment of businesses that
address society’s new needs

OilContinue to discoverand deliver energy

Natural Capital

社会関係

 isk of fluctuations in crude oil
Rprices, natural gas prices, foreignexchange and interest rates
Climate change risk
Country risks, etc.

 isk of disasters, accidents, systemRfailures, etc.
Risk of failure in exploration,
development or production

Climate change
response

HSE

Local
communities

Scope 2

6,864
55
28

Net carbon
intensity

thousandtons-CO2e
thousandtons-CO2e
KgCO2e/BOE

Contribution to achieving
the SDGs

Basicmanagement
policy towards
a net zero carbon
society by 2050
As a pioneer in energy
transformation, INPEX
will provide a stablesupply of diverse andclean energy sources
including oil and natural gas, hydrogen, andrenewable power.

Vision for around
2030
INPEX will transform net zero carbon from an ideal
to reality.

017

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

018

Financial and Operating Highlights(Five-year Comparative Graphs)

Profitability Indices
Net Income Attributable to Owners of Parent/Profit
Attributable to Owners of Parent

Net Sales/Revenue
Crude oil (¥ billion)
Natural gas (excluding LPG) (¥ billion)
LPG (¥ billion)
Other (¥ billion)

Net income attributable to owners of parent/
Profit attributable to owners of parent (¥ billion)

2,324.6 2,316.0

20.5 2,164.5
3.5
20.7
519.8
7.9
527.8

20.8
3.4
521.6

461.0

1,000.0

17.9
1.5
169.2
782.6

2019/312.8
3.1 771.0
219.9
14.9
2.7
247.8
764.0
505.5

2019/122020/12

Cash flow from operations (¥ billion)
Cash flow from operations before exploration investments(including Ichthys downstream IJV) (¥ billion)1

498.4

223.0

18.5
6.8
313.6

96.1
1,778.6

1,772.0

1,068.7

1,061.6
321.7

1,244.3
971.3

Cash Flow from Operations

788.1

751.2

782.2

2022/122022/12 2023/12

586.8

123.5

1,607.9

905.1

238.5

274.7

2019/3

2019/12

349.2

445.4

292.9

-111.62021/122022/122022/12 2023/12

JGAAP

2019/3

2019/12

IFRS

2020/122021/122022/12JGAAP

2022/12 2023/12
IFRS

2020/12JGAAP

2021/12IFRS

Stability Indices
Net Assets Excluding Non-Controlling Interests/Equity
Attributable to Owners of Parent, Equity Ratio/Ratio of
Equity Attributable to Owners of Parent to Total Assets
Net assets excluding non-controlling interests/
Equity attributable to owners of parent (¥ billion)
Equity ratio/Ratio of equity attributable to 3,760.8
owners of parent to total assets (%)

3,006.4 3,040.7
62.7

62.7

4,209.1
3,807.3

Net D/E Ratio

0.76

3,124.0
2,736.5
59.0

0.65
60.6

60.1

62.5

59.0

0.46

0.30

2019/3

2019/122020/12
JGAAP

Notes:INPEX has changed its fiscal year-end from March 31 to December 31, effectivefrom fiscal 2019.
The fiscal year ended December 31, 2019 is a transitional, nine-month accounting
period from April 1, 2019 to December 31, 2019.
The Japanese GAAP figures for the year ended December 31, 2022 were adjusted
retrospectively according to the changes in accounting policies, and the figures
after retrospective application are presented.

Net D/E ratio (based on institutional accounting practices) (Times)
Net D/E ratio (including Ichthys downstream IJV) (Times)2

2021/122022/122022/12 2023/12
IFRS

2019/30.31

2019/120.38

2020/12
JGAAP

0.46
0.31

0.31

2021/120.26

2022/12

0.28

0.20

2022/12 2023/12
IFRS

1. Cash flow from operations before exploration investments (including Ichthys
downstream IJV) includes figures of Ichthys downstream IJV (Ichthys LNG PtyLtd), a jointly controlled entity, and differs from figures on an institutional accounting basis. Data for and after FY2020/12 are disclosed. Regarding cash flowfrom operations before exploration investments(including Ichthys downstream
IJV) based on IFRS, data for FY2022 is not shown as disclosure commenced fromFY2023.
2. Net D/E ratio (including Ichthys downstream IJV) includes figures of Ichthys
downstream IJV (Ichthys LNG Pty Ltd), a jointly controlled entity, and differs fromfigures on an institutional accounting basis. Data for and after FY2020/12 aredisclosed.

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

019

Financial and Operating Highlights

Reserve/Production Indices
Net Proved Reserves1

Net Production (barrels of oil equivalents)

Crude oil (Million BOE)
Natural gas (Million BOE)

4,010

4,086

1,146

Crude oil (Thousand boe)
Natural gas (Thousand boe)

586
3,730

3,645

3,738

1,112

622

584

3,572

878

941

1,030

573

824

232

424

234

241

242

630
248

121

2,864

2019/3

2,974

2019/122,700

2020/12

2,860

2,704

2021/122,748
303

2022/122023/12

Average Production Cost per BOE Produced

2019/3

352

331

344

2019/122020/122021/123902022/12383

2023/12

Renewable Energy Generation Capacity

Average production cost per BOE produced(Excluding royalty) (US$/BOE)2

Renewable Energy Generation Capacity (MW)

601.9

290.8
5.7

5.3

5.2

5.4

5.8

5.6

2019/3

2019/122020/122021/122022/122023/122019/3

2019/122020/122021/122022/122023/12

Notes:
1. The proved reserves are evaluated internally for main projects of the Company,
its subsidiaries and affiliates, etc. The proved reserves are evaluated based on
the regulations of the U.S. Securities and Exchange Commission (SEC).
2. Average expenses per BOE produced is the production cost per barrel of oil
equivalent produced during the year.

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

020

Financial and Operating Highlights

Performance Indices
Share Price

Total Shareholder Return (TSR)

Year-end share price (Tokyo Stock Exchange closing price) (Yen)EPSTSR (%)1
TOPIX (including dividends) (%)

EPS (Yen/share)2

164.6

1,904.5
1,396
1,055.5

1,136.5

104.1

95.0

1,002

123.0

364.73248.55157.7
153.87

120.4

90.5

82.0

556

126.0

111.8

337.37

65.81

85.7

84.61

48.2
(76.50)2019/3

2019/122020/122021/122022/122023/122019/3

2019/122020/122021/122022/122023/122019/3

2019/122020/122021/122022/122022/12 2023/12

JGAAP

BPS

PER

BPS (Yen/share)

PBR

PER (Times)

3

IFRS

PBR (Times)5

4

3,345.22
2,879.68 2,915.31
2,058.95 2,082.43

16.0

2,253.17

13.4

1,874.08
7.7

6.5
4.1

2019/3

2019/122020/12JGAAP

2021/122022/122022/12 2023/12
IFRS

2019/3

2019/122020/12JGAAP

2021/122022/12

0.51

0.55

0.44

0.48

0.57

0.48

0.30

3.8

2022/12 2023/12
IFRS

2019/3 2019/12 2020/12 2021/12 2022/12 2022/12 2023/12
JGAAP

IFRS

Notes:
1. Total shareholder return (TSR) is the yield on the closing price of our common stock on the First Section of the Tokyo Stock Exchange in FY2018/3.
2. EPS is calculated by dividing profit (loss) attributable to owners of parent by the average number of shares during the year.
3. BPS is calculated by dividing the year-end total equity (excluding year-end non-controlling interests and year-end total equity related to Class A stock) by the year-end number of common shares issued (excluding the year-end number of treasury shares).
4. PER is calculated by dividing the year-end share price by basic earnings (loss) per share. No price earnings ratio (PER) is shown for FY2020/12, as a net loss was recorded in this year.
5. PBR is calculated by dividing the year-end share price by equity attributable to owners of parent per share.

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

021

Financial and Operating Highlights

Performance IndicesTotal Dividends, Total Share Buybacks, Total Payout Ratio1,
Payout Ratio
Total dividends (¥ billion)
203.4 203.4
194.9
Total share buybacks (¥ billion)

Cash Dividend per Share (DPS)
Cash dividend per share (2nd quarter end) (Yen)
Cash dividend per share (Fiscal year-end) (Yen)74

Total payout ratio (%)1
Payout ratio (%)

62
48
30

24
15

2019/3

61.9
36.5

24
12

12

12

2019/122020/12

9

32
28

18

138.0

37

37

30

35.0

70.0

35.5
43.8

35.0

20

2021/122022/122023/12

31.2
68.0

120.0

44.1

120.0

40.8

83.4

18.4

100.0

60.6

94.9

83.4

29.8

17.0

2019/3 2019/12 2020/12 2021/12 2022/12 2022/12 2023/12
JGAAP

IFRS

Efficiency Indices
ROE2

ROIC3
ROIC (%)

ROE (%)

2

13.5

8.4
8.0

7.6
3.2

9.4

14.6

5.0

4.1
3.0
(3.9)

1.6

2019/3 2019/12 2020/12 2021/12 2022/12 2022/12 2023/12
JGAAP

IFRS

2019/122020/12JGAAP

2021/122022/122023/12
IFRS

Notes:
1. Total payout ratio has been disclosed since FY2021/12. No payout ratio is shown
for FY2020/12, as a net loss was recorded in this year. For FY2023/12, total payout
ratio and dividend payout ratio under Japanese GAAP are 52.5% and 25.8%,
respectively.
2. ROE is calculated by dividing profit (loss) attributable to owners of parent by theaverage equity attributable to owners of parent at the beginning and end of theyear.
3. Return on invested capital (ROIC) is calculated by dividing the adjusted profit (netprofit before deduction of interest payments, impairment loss etc. and non-controlling shareholder profit/loss) by the average of invested capital (the total of
capital stock, interest-bearing liabilities as recorded in consolidated financial
statements and project finance of the Ichthys downstream IJV) at the beginningand end of the year.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

022

Sustainability Highlights
Environment
Greenhouse Gas Emissions

Greenhouse Gas Emissions(Scope1+2)(Scope 3, category 11)

Net Carbon Intensity

Scope 1 emissions (thousand tons-CO2e)
Scope 2 emissions (thousand tons-CO2e)
Boundary: Equity share1

Scope 3 emissions (thousand tons-CO2e)
Boundary: Equity share1

Net carbon intensity (kg-CO2e/BOE)
Boundary: Equity share1

7,328

7,302

6,839

77,080

6,864

148

136

69

55

2020/122021/122022/122023/1284,31077,80586,19935

2020/122021/122022/122023/12• Scope 1 emissions are direct emissions from sources that the Company owns orcontrols. Scope 2 emissions are indirect emissions associated with the electricity,
steam, heat, and cooling that the Company purchases and consumes.

• Scope 3 emissions are indirect emissions that occur in the value chain of the reporting company.
• Category 11 emissions are calculated by multiplying the total sales volume ofcrude oil, natural gas and LPG by CO2/CH4/N2O emission factor under the assumption that all amounts of crude oil, natural gas and LPG are combusted. The
emissions are calculated from 2006 IPCC Guidelines for National Greenhouse Gas
Inventories emissions factors.

Methane Emissions Intensity

Freshwater Consumption

Methane emissions intensity (%)
Boundary: Operational control2

Domestic freshwater consumption (m3)Overseas freshwater consumption (m3)
Boundary: Operational control2

0.07
0.04

0.05

1,637,999

0.05

642,241995,758

2020/122021/122022/122023/122020/122,257,038

2,211,204
1,023,389

1,200,485

1,187,815

1,056,553

2021/122022/12

1,625,610
551,260
1,074,351

2023/122020/1233

2021/1228

282022/122023/12• Net carbon intensity includes offsets. Intensity indicates the volume of GHG emitted per unit of consolidated production of oil and natural gas, and electricity generated using renewable energy (converted to calorific values).

Notes:
1. The total amount of emissions corresponding to the net economic share of eachproduction project.
2. These data are reported on an operational control basis, including headquarters,
Technical Research Center, overseas offices and operational organizations in Japan and overseas.

External Evaluation
INPEX has engaged in active dialogue with stakeholders throughinformation disclosure and responded to external evaluations
by third parties. The evaluations
by external organizations and the
major ESG Indexes for which INPEX has been selected as a component stock are shown on theright.

FTSE4Good
Developed Index,
FTSE4Good Japan
Index

FTSE Blossom Japan,
FTSE Blossom Japan
Sector Relative Index

MSCI ESG Leaders
Indexes

THE INCLUSION OF INPEX CORPORATION(INPEX) IN ANY MSCI INDEX, AND THE
USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMESHEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT ORPROMOTION OF INPEX BY MSCI OR ANY
OF ITS AFFILIATES. THE MSCI INDEXESARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND
LOGOS ARE TRADEMARKS OR SERVICEMARKS OF MSCI OR ITS AFFILIATES.

MSCI Japan ESG
Select Leaders Indexes

S&P/JPX Carbon
Efficient Index

CDP Climate Change
2023 Score: A-

Selected as “Yearbook
Member” in the S&P
Global SustainabilityAward 2024

Environmental
Sustainability andProgress in the Ministryof Environment’s ESG
Finance Awards Japan

INPEX CORPORATION Integrated Report 2023

Value Creation

Introduction

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

023

Sustainability Highlights

SocialSocial Investment

Percentage of female executives

Social investment (million JPY)
Boundary: Consolidated

Percentage of female executives (%)
Boundary: Consolidated

6,043

Percentage of females among
new graduate and mid-career

KPI
2030: 10%

4,402
2,196

2020/123,013

2021/122022/122023/12KPI
2030: 30% or more

Percentage of females among
new graduate and mid-career (%)
Boundary: Consolidated

6.4

5.4

5.1

5.7

2020/122021/122022/1225.5

2023/122020/122021/122023/122022/12• Percentage of females among new graduate and mid-career is not shown as disclosure started in 2023.

Employees by nationality

Wage difference between males
and females

Percentage of non-Japanese citizens (%)
Boundary: Consolidated

Wage difference between males and females (%)
Boundary: Consolidated

39.9

2020/122021/12

LTIR, TRIR
LTIR
TRIR
Boundary: Operational control1

2.24

2.90

2022/12KPI
Zero major accidents**Major accidents: fatalities, major
leakages, serious injuries inoperator business

2.54

0.26

0.38

0.27

2.17
0.51

2020/122021/122022/122023/12• LTIR (Lost Time Injury Frequency): Rate of injury resulting in fatalities or lost time
per million hours worked• TRIR (Total Recordable Injury Rate): Rate of total fatalities, lost work day cases,
restricted work day cases, and medical treatment cases per million hours worked
Notes:
1. These data are reported on an operational control basis, including headquarters,
Technical Research Center, overseas offices and operational organizations in Japan and overseas.

KPI
Male employees taking parental leave (persons)Rate of paternity leave
Rate of paternity leave
2030: 70% or more
Female employees taking parental leave (persons)
Percentage of those returning to work (%)
Boundary: Non-consolidated
98.0

74.1

41.6

2023/12

Number and percentage of employees taking
advantage of parental leave system by gender

KPI
2030: 80% or more

2020/122021/122022/122023/12• Percentage of wage difference between males and females is calculated by (average annual wage for women) ÷ (average annual wage for men).
• Percentage of wage difference between males and females is not shown as disclosure started in 2023.

Governance

100

97.6

24 26

29 36

2020/4–2021/3

2021/4–2022/3

92.7

70.4
38
16
2022/4–2023/3

13
2023/4–2024/3• The data is a cumulative number. From 2022, the data represents the number offirst-time acquirers during the year in line with the method used to calculate theacquisition rate.
• The rate of employees returning to work is calculated by dividing the number of
employees who have returned by the number expected to return for each fiscal
year, multiplied by 100.

Number of Directors

Number of Audit & Supervisory Board Members

Directors (inside)
Directors (outside)
Percentage of female directors (%)
Percentage of outside directors (%)
Boundary: Non-consolidated

Audit & Supervisory Board members (inside)
Audit & Supervisory Board members (outside)
Percentage of female Audit & Supervisory Board members (%)
Percentage of outside Audit & Supervisory Board members (%)
Boundary: Non-consolidated

14
43

6

12
42

7

8

8

2021/3572022/3

12
42
8

50 10
5
7

2023/351052024/3

76.9

40

80

5

80
4

20

5

80
4

5

80

4

4

20

20

20

5

1

1

1

1

2021/32022/32023/32024/3• The number of Directors and Audit & Supervisory Board Members is the number as of the closing of the annual general meeting of shareholders held in March of each year.

INPEX CORPORATION Integrated Report 2023

Growth Strategy

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

024

INPEX CORPORATION Integrated Report 2023

INPEX Vision @2022

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

025

Long-term Strategy

Vision for 2030 and 2050
We are committed to transforming net zero carbon from an aspiration toreality by 2030, and then on toward a net zero carbon society by 2050. Oil andnatural gas being an essential energy source for economic and social activities,
we will work to ensure their stable supply. Natural gas, for which demand is
expected to be strong, especially in Asia, is a business that will be strengthened

5 net zerobusinesses

Shareholder
returns

Achievecommercialization andestablish a strong
position

Investment for
growthApprox.

¥3.8–4.4¥5–6 trillion

Hydrogen Ammonia

Maintain a strong
financial position

Adequateshareholder returns

Approx.

(Maximize use ofgovernment support
and collaboration withindustry, academia andgovernment, etc.)

CCUS

700t/year

Renewable power
generating capacity

Renewable energy

500MW
Domestic technology
development business

Methanation

Forest conservation

400Nm /h1.5MMttrillionfor 5 netzero
businesses

Maintain and expand
stable supply

10% or more

Strengthen and expand
the business as arevenue base while
making it cleaner
through CCUS, etc.

Investment ratio
for gas business

GHG intensity
reduction by

Approx. 50%

CO2 injection

2.5MMt per year

Scale up

Supply of approx. 10%of domestic demand

Scale upMonetization as CCUS
business

Scale up

Future production ofgreen hydrogen2

Renewable power generating
capacity
1–2GW

Approx. 25 times

Production business scale
10K Nm3/h(60Kt/year)

Expansion

Project participation

Carbon credit acquisition
2MMt per year

Expansion

Making thebusiness cleaner

Gas shift

All figures based on INPEX equity portion

Around 2035

Production business scale
60K Nm3/h (360Kt/year)
Expanded sustainable
forest conservation
business

GHG intensity reduction by
30% or more(vs. 2019)
Investment ratio for gas
business
Approx. 70%
Reinforced trading functions4
LNG handling volume
Approx. 10MMt

Sustained
efforts

Expanded stable supply
of Decarbonized
oil & gas

Maintain stable energy
supply on the basis ofthoroughly making thebusiness cleaner

Oil & gas business

Commercialization of 3 or more
projects
100Kt/year1

Approx. 2–4 times

3

Including

Oil & gas

Approx. 150 times

Kashiwazaki
demonstration project,
Approx. 400 times
etc.
6Kt/year

REDD+ project3

trillion
Promoteinvestment forsustainablegrowth

¥0.7–1clean energy sources
including oil andExpand each business at an accelerated pace andbecome recognized as a credible key player

Kashiwazaki
demonstration projectDebt
reduction

CF from
operations
beforeexploration

will provide a stablesupply of diverse and2050

Around 2030
Around 10% of operating CF5

Expenditure

Basic management
policy towards a net
zero carbon society
by 2050
As a pioneer in energy
transformation, INPEX

Medium-term Business Plan

Estimated cash allocation
2022–2030 (9 years)
Revenueand expanded as a revenue base while moving to thoroughly make it cleaner
through the introduction of CCUS and other measures. In the 5 net zerobusinesses, we will aim to achieve commercialization and establish a strong
position.

1: Ammonia volume shown in hydrogen equivalent
2: Hydrogen that is produced by splitting water using electricity generated from renewable energy
3: Concept defined at the 2010 United Nations Climate Change Conference that augments REDD (Reducing Emissions from Deforestation and forest Degradation) with the active prevention of forest degradation through forest
management and enhancement of carbon stocks through forestation
4: Inclusive of midstream and downstream business, etc.
5: Operating Cash flow before exploration (including Ichthys LNG Pty Ltd, the Ichthys Downstream Incorporated Joint Venture). Cash flow from renewable energy business is estimated based on equity operating cash flow.

natural gas, hydrogenand renewable power.

2050
Challenge fornet zero

Be a company rich invitality, creativity anddiversity, capable ofsustainable
development

INPEX CORPORATION Integrated Report 2023

INPEX Vision @2022

Introduction

A Company Capable of
Sustainable Development

Growth Strategy

Value Creation

Financial andOther Information

026

Medium-term Business Plan

Positioning and Targets of the Mediumterm Business Plan 2022–2024

Fiscal Year Ending December 31, 2024: Progress on Management and Business Targets

Gaining momentum toward realizing our Vision for around 2030

The Company expects to be able to achieve the Medium-term Plan targets for the fiscal year ending December 31, 2024
due to steady oil prices and foreign exchange rates as stable operations were carried out at the Company’s key projects
including the Ichthys LNG Project.

5 Net Zero Businesses

Oil and gas business teadfastly implementSdemonstration and research
activities
Prepare for full-scale
investment

 afely and stably operateSbusinesses
Contribute to the stablesupply of energy and securerevenue and cash flow

Strong management foundation
Build a strong financial position to prepare
for future investments and risks andimprove stakeholder returns
Strengthen R&D and reinforce organizational
structure, etc.

Shareholder
Returns

Strengthen shareholder returns in line withgrowth in financial performance, while
maintaining the basis for stable dividends

Aim for a total payout ratio of 40% or greaterImplement share buybacks based on business environment, financial
position and management conditions

Fiscal 2024 shareholder returns (as of May 14, 2024 earnings report)
Annual dividend

76 JPY/share(+2 yen year on year)

Share buybacks

50.0

billion JPY

Total payout
ratio (annual)

Approx. 40%

Consideradditional
shareholder
returns after theearnings report ofthe second quarter

Total dividends and total share buybacks (billion JPY)
Total dividends
Total share buybacks
Total payout ratio (%)

65.1
26.3

36.5

35.5

35.0

43.8
(¥30)

35.0

61.9

120.0 100.0

70.0

40.8

60.6

83.4

94.9

68.0

(¥18)

(¥24)

2018/3

2019/3 2019/12 2020/12 2021/12(¥24)

Medium-term
Business Plan period

(¥48)

(¥62)

(¥74)

40.0
94.0
(¥76)

Brent crude oil price (USD/barrel)
Exchange rate (JPY/USD)
Income attributable to owners ofparent1 (JPY)Management CF from operations before
exploration2 (JPY)targets
ROE
Net D/E ratio2
Net production volume (barrels ofoil equivalent per day)
Production cost per barrel, excl.
Businessroyalties
targets
Net carbon intensity3*Total payout ratio for FY2022/12 and onwards are based on IFRS
*Total payout ratio (JGAAP) for FY2022/12 and FY2023/12 are 44.1% and 52.5%.

Fiscal 2023
(IFRS) (Actual)

Fiscal 2024 (IFRS)(Annual Forecast) (as of May
14, 2024 earnings report)

99.04
131.6482.17
140.66

80.0
145.0

60
110

70
110

461.0 billion

321.7 billion

360.0 billion

170.0 billion

240.0 billion

1,061.6 billion 1,068.7 billion

844.0 billion

600.0 billion

700.0 billion

13.5%
0.46
622 thousand

8.0%
0.31
630 thousandbarrels

Around 8.4%
Around 0.30
645 thousandbarrels

Around 6.0%
Around 8.0%
0.5 or less
0.5 or lessLevel exceeding
700 thousand boed

USD 5.8/barrel

USD 5.6/barrel

USD 5.6/barrel

Reduction towards USD 5.0/barrel

28kg/BOE

28kg/BOE

29kg/BOE

Reduction of 10% (4.1 kg/BOE) or more
over a 3-year period toward 2030 target*4

Zero major
accidents

Zero major
accidents

Aim for zero major
accidents5

Zero major accidents5

Conditions

Safetybarrels

Fiscal 2024
(Medium-term Plan Target)

1. Profit attributable to owners of parent for the fiscal 2024 forecast
2. Includes Ichthys downstream IJV and differs from cash flows based on institutional accounting practices
3. Net carbon intensity = (equity share emissions volume (Scope 1+2) – offset) ÷ (net production volume of upstream oil and gas business + power generation volume of renewable energy business)
4. 2030 target: reduction of 30% or more in net carbon intensity from 2019 level (41.1kg/BOE)
5. Major accidents: fatalities, major leakages, serious injuries in operator business

Net production (barrels of oil
equivalent per day)Cash allocation
Expected cash allocation for the2022–2024 Medium-term Business Plan
(3-year period)

Domestic O&G
Overseas O&G (Ichthys PJ)
Overseas O&G (other projects)(Thousand boe/day)

645

630

622
395

206
21

2022/12

Conditions: includes Ichthys downstream IJV,
exchange rate: 110 JPY/USD+USD 10/barrel

USD 60/barrel220
20

2023/12+300 billion JPY

Cash flow from operations
before exploration
Approx. 1,800 billion JPY(as of May 14, 2024 earnings report)
Conditions: includes Ichthys downstream IJV,
2024 figures are forecasts
3-year average: Brent crude oil price: USD 87.1,
exchange rate: 139.1 JPY/USD

Debt reduction
Approx. 1,110 billion JPY

300 billion JPY
Debt reduction
Approx. 500 billion JPY
Shareholder returns
Approx. 200 billion JPY

Cash flow from operations
before exploration
Approx. 2,980.0 billion JPY

Revenue

Expenditure

Shareholder returns
Approx. 540 billion JPY

Investment for growth
Approx. 1,330 billion JPY

Investment for growth
Approx. 1,100 billion JPY
5 net zero businesses
Approx. 200 billion JPY

2024/12(forecast)

Cash allocation for 2022–2024 (3-year period)

Approx. 2,100 billion JPY

390

2022/12 2023/12 2024/12(forecast)Fiscal 2022
(J-GAAP) (Actual)

5 Net Zero Businesses
Approx. 180 billion JPY

Revenue

Expenditures

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

027

Dialogue: Senior Vice President,
Finance & Accounting and Senior Vice President,
Corporate Strategy & PlanningWe will support the
expansion of corporate
value through growthand financial strategies
based on a broad
perspective.

Transitioning to IFRS and looking
back at fiscal 2023
Takimoto: Beginning with the Annual Securities Reportfor fiscal 2023 submitted in March 2024, INPEX has adopted the International Financial Reporting Standards(IFRS). All future disclosures will be integrated under IFRS.
The transition to these standards has been a daunting
task for Finance & Accounting.
Yamada: We are now breathing a sigh of relief, having
just completed a major project that took over four years.
All of the global major firms and major international oil
companies (IOCs) have, of course, adopted IFRS. One of
our objectives in transitioning to IFRS is to facilitatecomparison with such groups of companies for our

Toshiaki Takimoto

Director, Senior Managing Executive Officer
Senior Vice President, Corporate Strategy & Planningshareholders, investors and stakeholders, who evaluate
our corporate value.
Another driving factor behind the transition is thatmost of the Group’s subsidiaries abroad have alreadyadopted IFRS, and it has become necessary for streamlining accounting operations and unifying standards toassess the performance of subsidiaries. Although thetransition to IFRS does not result in the loss of continuity
in financial reporting, there are aspects where differences appear on the surface from the previous accounting standard. These include the accounting treatment
relating to the capitalization, amortization, or exploration

Daisuke Yamada

Director, Senior Managing Executive Officer
Senior Vice President, Finance & Accounting

expense, the method for recording impairment losses,
the return of depreciation expenses due to the revaluation of non-current assets, and tax effect accounting andthe deferral of foreign exchange effects.
Takimoto: In that regard, we can say that we are able tocommunicate the Group’s financial situation more clearly
and accurately in a manner that is in line with actual business conditions.
Yamada: Reviewing our consolidated results for fiscal
2023, profit attributable to owners of parent was 321.7 billion Japanese yen—the second highest level in theGroup’s history—despite a year-on-year decline in profit

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

028

Dialogue: Senior Vice President, Finance & Accounting and Senior Vice President, Corporate Strategy & Planningas stable operations were carried out at the Company’s
key projects including the Ichthys LNG Project. Althoughoil prices have fallen, overall they have remained favorable throughout the year, with the external environment
such as the exchange rate situation serving as a tailwind.
The decrease in profit was impacted by impairment
losses on the Prelude FLNG Project in Australia, due tochanges in the external environment such as increasingly
stringent environmental regulations in Australia.

Outlook for fiscal 2024 and future
prospects
Takimoto: Fiscal 2024 marks the final year of the current
three-year medium-term business plan. The focus of thework of Corporate Strategy & Planning during the year
will be the formulation of the next medium-term businessplan and the devising of future growth strategies. In early
2025, we plan to present a new vision and plan, predicting

what the energy industry will look like in a decade, andemploying backcasting to determine what the Groupshould do over the next three years.
Though we will cover it in the next topic, a significant
theme for us will be how to draw up a growth strategy thatthe market will accept and appreciate, in order to improve
the stock price and price book-value ratio (PBR). Meanwhile, Corporate Strategy & Planning will take the initiative in emphasizing IR activities to accurately communicate
the Group’s growth strategy to institutional and individual
investors to gain their understanding. Investor Day, acompany information session we have held since fiscal
2023, is an example of these activities.
Yamada: For fiscal 2024, as of the first quarter financial
results announcement, we are forecasting profit of 360
billion Japanese yen on an IFRS basis. Oil prices and foreign exchange rates significantly impact the Group’s performance. The current forecast assumes an oil price of 80
US dollars per barrel and an exchange rate of 145 Japanese yen against the US dollar. We will review these assumptions every quarter, and they are reflected in ourearnings forecast. If we can reach this 360-billion-yen target, it will be the second highest profit level in the Group’s
history after fiscal 2022.
As the external environment remains favorable andproduction volume is stable, the challenge becomes investing in the future.
Takimoto: Intensive investment in the Ichthys LNG Project drove the Group’s interest-bearing debt upward significantly. During the period of the current medium-termbusiness plan, the Group has exercised a certain degreeof restraint with regard to investment with the policy ofusing free cash flow for the repayment of borrowings tothe extent possible. The repayment has progressed morethan originally anticipated, and currently, the net debt/

equity (DE) ratio has fallen to 0.3, the lower limit of our financial discipline. Now that we have achieved a sound financial position, we need to steer the company into an
investment phase to boost earnings over the duration of
the next medium-term business plan, set for launch in fiscal 2025.

Improving capital efficiency withawareness of share price and PBR
Yamada: Our PBR is currently, below 1.0 around 0.6 to 0.7.
The market’s seemingly unenthusiastic opinion of ourstock is a source of frustration for us. The Group, as a fossil fuel-related company whose core business is oil andnatural gas, is often perceived as having stranded assets,
and we may not have successfully communicated ourmanagement direction and business strategy fully toshareholders and investors. We must make a steady, continuous effort to ensure this happens.
Since PBR equals to the share price divided by net assets per share, there are ways to increase the value pershare by decreasing the denominator (net assets) throughthe purchase and cancellation of treasury stock. This will
be based on the financial discipline of keeping the net
D/E ratio in the range of 0.3 to 0.5. It requires appropriate
controls, however, as at present we are in a situation
where an excessive compression of our equity capitalshould be avoided, as we are preparing to make a major
investment in the Abadi LNG Project.
On the other hand, in terms of capital efficiency, we
intend to realize return on equity (ROE) that exceeds thecost of shareholders’ equity, and return on invested

INPEX CORPORATION Integrated Report 2023

Introduction

Growth Strategy

Value Creation

A Company Capable of
Sustainable Development

Financial andOther Information

029

Dialogue: Senior Vice President, Finance & Accounting and Senior Vice President, Corporate Strategy & Planning

capital (ROIC) that is higher than weighted average costof capital (WACC). Our cost of shareholders’ equity is in
the high 8% range. In fiscal 2023, however, our ROE on an
IFRS basis was only 8.0%—short of investor expectations—attributable primarily to the impact of foreign currency translation adjustments that expanded our equity
capital. We will strive to enhance profitability while also
managing our costs and equity capital.
The denominator of ROIC, introduced as a new management indicator, is invested capital, not equity capital,
which enables us to understand capital efficiency on amore granular basis, by department and by project. For
fiscal 2023, the ROIC was 8.4% on an IFRS basis and
WACC was 6.4%. We have just left the starting line interms of ROIC management, but we are visualizing thenumbers in a manner that breaks down elements into
project units.
Takimoto: Regarding ROE, since we completed our investment in the Ichthys LNG Project— the group’s largest
business—just a few short years ago, we have not madeprogress in the amortization of assets. Additionally, theforeign currency translation adjustment has also ballooned since the Japanese yen is weaker than it was at
the time of the investment. Consequently, we have todeal with the size of net asset portion, which we cannot
control immediately. While proceeding with the amortization of Ichthys-related assets, INPEX will limit the increasein equity capital through enhancement of shareholder returns by measures including the acquisition of treasury
stock, and acquire assets featuring high investment efficiency, thereby striving to boost ROE.
Looking at ROIC, investors have shown their high regard for disclosure by division and project, and we willkeep promoting ROIC management that contributes tothe improvement of capital efficiency.

Yamada: The key to ROIC management is to ensure thatthe meaning of ROIC is understood and accepted byeach Senior Vice President and even each employee, andto encourage a heightened awareness of ROIC improvement. We intend to work with Corporate Strategy & Planning concerning in-house outreach.
Indicators (IFRS)

dividends to meet these types of expectations. A company cannot survive without growth, however, so investment is necessary to capitalize on opportunities for
growth.

Unit (%)

ROIC

WACC1

ROE

Cost ofshareholders’equity1

FY2023 (results)

8.4

6.4

8.0

8.8

FY2024 (forecast)

7.52

6.6

8.42

8.8

1. INPEX estimate based on the capital asset pricing model calculated in January2024
2. Figures as of the fiscal 2024 first quarter financial results announcement

Stock market confidence inaggressive investment
Takimoto: Another theme on which Corporate Strategy &Planning should focus is gaining stock market confidencewith regard to the Abadi LNG Project, in which we will be
actively investing going forward. As we formulate the next
medium-term business plan and vision, we must advocate
for a business strategy with Abadi as a pillar given the
expected growth in natural gas demand beyond 2030,
and ensure the market understands that this will lead tocorporate value enhancement.
Yamada: Among shareholders and investors, there arethose who place more emphasis on the return of profit
over growth investment, and we are working to boost

Takimoto: I would agree with that. Companies that do
not grow are destined to be forced out of the market.
Yamada: The Abadi LNG Project, the Group’s second
business pillar, is a source of significant future earnings.
We will further invest the earnings generated from thisproject in our 5 net zero businesses with an eye towardrealizing a net zero carbon society, a trend that will lead to
the Group’s sustainable development. And there is no
doubt that LNG, which features low environmental impact, will bring value to energy transitions in the medium
to long term. We will do our best to accurately convey thisperception to the stock market, and we hope to gain confidence on the part of the market in the Abadi LNG
Project.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

030

Dialogue: Senior Vice President, Finance & Accounting and Senior Vice President, Corporate Strategy & Planning

Expected cash flow level going
forward
Yamada: As I noted earlier, we have prioritized cash allocation in the current medium-term business plan as follows: first, we will reduce interest-bearing debt, thenreturn profits to shareholders and finally invest in growth.
Since we have made more progress than expected andthe net D/E ratio has fallen to the lower limit, we will shift
to prioritizing shareholder returns and growth investmentin the next medium-term business plan, set to launch infiscal 2025.
We will concretely formulate the contents of the next
medium-term business plan going forward, but the main
focus of the plan will be a growth strategy that takes a longer-term perspective and expands the scale of businesswhile contributing to decarbonization. Fortunately, we arein good financial stead, as our equity capital currently sits
at over 4 trillion Japanese yen, and our stance should be to
make appropriate decisions with regard to taking risk andbe willing to make significant growth investments.

Takimoto: Looking back over the past decade, theGroup’s net sales have essentially doubled and cash flowfrom operations before exploration investments has increased fourfold. The most significant factor was thelaunch of Ichthys LNG Project operations. Over the next
10 years, we aim to augment our corporate value to matchthat of the previous decade through the operation of the
Abadi LNG Project. Indicators that capture this type ofscale expansion include capital efficiency indicators suchas ROE and ROIC and cash flow levels. We previously positioned production volume as a KPI, but it reflects neither
profitability nor capital efficiency. Our stance will be toprioritize value over volume, and from the perspective ofenhancing corporate value, we will focus on capital efficiency and cash flow over the 10 years to come.
Yamada: Our group’s cash flow from operations before
exploration investments on an IFRS basis at 1,068.7 billion
Japanese yen in fiscal 2023, and we forecast it to be 844.0
billion Japanese yen in fiscal 2024. Over the medium tolong term, we hope to maintain cash flow from operations
before exploration investments of 800 billion to 1 trillion
Japanese yen, while taking into account taxes to be incurred on the Ichthys LNG Project and increased decarbonization-related R&D expenditures.

Decision-making process regarding
investment in projects
Takimoto: Concerning investment projects in the past, inan effort to effectively utilize management resources, wehave sold or liquidated some items that had low profit
margins in spite of the manpower expended, or werelocated in remote areas that made it challenging to improve management efficiency.
For new projects, in the case of oil and natural gas, country and disaster-related risk and the possibility that the expected production volume may not be met are taken into
consideration. A projected internal rate of return (IRR) of
10% or higher is one investment decision criterion, and wehave also applied this to the Abadi LNG Project. Contrast
this with the case of solar power generation projects in renewable energy, and we see that the risks involved in reaching monetization are not significant, resulting in project
investments being executed even with expectations for single-digit IRRs. For hydrogen and ammonia and CCS/CCUS,
an IRR of 10% or higher is required because the value chain
has yet to be firmly established at this moment.
Yamada: Hydrogen and ammonia, in particular, are highcost forms of clean energy, so securing consumers will be
the key to commercialization. There are also situations
where the production technology is at a more complete
stage than the infrastructure required for transport. These
things will naturally change in the future, and we will makedecisions based on changes in the external environment.
Takimoto: When considering the acquisition of a new
project, our INPEX Value Assurance System (IVAS) Committee meets to check whether the investment is worthwhile, primarily from a technical perspective, and to verify
the technical evaluation and due diligence conducted by
the business unit side. When an existing project transitions into a new investment phase, the IVAS Committee
conducts a technical evaluation and verification in a similar manner, and the Management Committee decides
whether or not to go forward based on the recommendation of the IVAS Committee.
Meanwhile, Corporate Strategy & Planning confirms
whether the internal rate of return (IRR) of the project

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

031

Dialogue: Senior Vice President, Finance & Accounting and Senior Vice President, Corporate Strategy & Planningsatisfies the company’s internal investment criteria orwhether there is potential for synergy with other businesses—after the business division side has rendered
their evaluation and judgment—before the project is put
before the Management Committee.
Yamada: Once the IVAS Committee’s technical verification and Corporate Strategy & Planning’s confirmationof economic feasibility are complete, the final investment decision is made by the Executive Committee or,depending on investment scale, by the Board of
Directors.

Challenges related to investing in
the 5 net zero businesses
Yamada: Our policy for our 5 net zero businesses is toimplement growth investments of up to 1 trillion Japanese yen over the nine-year period from fiscal 2022 to fiscal 2030. During the three-year period from 2022 to 2024,
we expect to invest approximately 176.4 billion Japaneseyen.
Takimoto: Currently, our particularly significant investments are focused on M&A and acquiring interests in the
renewable energy sector, but for projects with large acquisition prices and goodwill, we need to be prepared to
wait for some time until we recoup our investment.

INPEX Value Assurance System (IVAS) Committee

For projects such as oil and natural gas exploration, evaluationand development, overseas energy sales promotion, renewableenergy, new business projects,
electricity and heat supply and hydrogen and CCUS, the work content is assessed chiefly from atechnical perspective. The resultsof the assessment are reported tothe senior vice president or officer
in charge of the business division
promoting the project in question
and, as necessary, to the Executive Committee.

Management Meeting
ReportIVAS Committee
Verify technical assessment and due diligence in investment decisions, with
Senior Vice President, Technical Headquarters as Chairman of the Committee
Assurance Review

Peer Review

A review performed at key project mile- A review of individual work results perstones to ensure that the project is formed mid-stage or during transition,
ready to move on to the next stage
with experts from outside the businessdivision taking part
Note: Economic feasibility is confirmed separately in advance by Corporate Strategy & Planning

Yamada: The general view seems to be that oil and natural gas investments are high risk with high return and investment in renewable energy is medium risk withmedium return. While upside returns from renewable energy are improbable, however, the oil and natural gas
business is forecast to enter a rising oil price phase as it
operates over the long term, leading to an expectation ofa significant revenue increase.
Takimoto: From this standpoint, it makes sense for theGroup to continue investing in oil and natural gas in parallel with growth investments in our 5 net zero businesses.
Yamada: Among those businesses, CCS and CCUS are
highly significant areas to focus on because of the significant synergy with existing businesses and because they
contribute to reducing CO2 emissions from their own operations. Looking at impairment risk, renewable energy
and hydrogen and ammonia are subject to this risk, depending on the project.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

032

Dialogue: Senior Vice President, Finance & Accounting and Senior Vice President, Corporate Strategy & Planning

Considering the future ofshareholder returns
Yamada: In the current medium-term business plan, weestablished a policy based on stable dividends, with a target total payout ratio of 40% or greater and a minimum
annual dividend of 30 yen per share. Based on this policy,
we paid an annual dividend of 74 yen per share in fiscal
2023—12 yen higher than the preceding year—and executed the acquisition of treasury stock totaling 100 billion
Japanese yen. This resulted in a total payout ratio of
52.5% on a Japanese GAAP basis.
For fiscal 2024, we plan to pay an annual dividend of 76
yen per share, an increase of 2 yen, based on our sufficient financial strength. Moreover, at the time of the firstquarter financial results announcement, we decided to
execute the acquisition of treasury stock totaling 50 billion Japanese yen.
Takimoto: Regarding our shareholder return policy, we
have received many comments and requests from shareholders and investors, including introducing progressive
dividends, formulating a standard based on cash flow andestablishing a dividend on equity (DOE) ratio. We are currently mulling over our ideal return policy for the upcoming medium-term business plan.

My own view is that a listed company has the responsibility to pay dividends. Moreover, the company must work
to boost profits while stressing capital efficiency, as it
wants to maintain and augment its dividend payout.
Yamada: I also believe that the continuation of dividends
is a given, and we would like to increase them if possible.
As I noted earlier, the Group will transition to an active
investment phase based on efficient investments, with the

Abadi LNG Project as the centerpiece. In doing so, we will
aim to maintain the level of shareholder returns. We will
always consider ways to return profits that will satisfy andplease INPEX shareholders and investors.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Financial Information by Segment

Oil & Gas Japan

From the first quarter of the fiscal year ended December 2023, the Company has made changes to segment profit and reportable segments as outlined on the right.
Revenue, profit attributable to owners of parent, ROIC and ROE of each segment are as below.

Consolidated
2,324.6(JGAAP)

Growth Strategy

Oil & Gas Japan

Oil & Gas
Overseas

Ichthys Project
Other Projects

Other

Oil & Gas Overseas(Ichthys Project)(Other Projects)

1,721.8(JGAAP)

Revenue
220.7
2022/122023/12(JGAAP)

239.8

2022/122023/12391.8(JGAAP)

2023/12

292.8

309.8

Other

25.1

2022/12033

1,528.2

393.6

2022/12Financial andOther Information

Minami-Nagaoka Gas Field, Naoetsu LNG Terminal
Ichthys LNG Project in Australia and exploration ofsurrounding area
Projects in Australia (excluding the Ichthys LNG Project),Southeast Asia, Europe, Abu Dhabi and other areas
Five net zero businesses, transportation and sales
business, civil engineering business, etc.

Oil & Gas Overseas

2,164.5(billion JPY)

A Company Capable of
Sustainable Development

2023/12(JGAAP)

44.1

2022/122023/12

-5.3

-18.0

2022/122023/12461.0
Profitattributableto ownersof parent(JGAAP)

321.7(JGAAP)

35.7(JGAAP)

118.3(JGAAP)

42.0

0.7(billion JPY)(JGAAP)

2022/12

ROIC
(%)

9.4

(JGAAP)

2022/12ROE(%)

2023/122022/122023/122022/122023/122022/122023/12

17.8
8.8

8.4
2023/12

13.5(JGAAP)

2022/128.0
2023/122022/122023/122022/122023/128.1
2022/122023/121.52022/122023/12

1. Revenue of Oil & Gas Overseas (Ichthys Project) does not include figures of Ichthys downstream IJV (Ichthys LNG Pty Ltd), a jointly controlled entity.
2. Return on invested capital (ROIC) is calculated by dividing the adjusted profit (net profit before deduction of interest payments, impairment loss etc. and non-controlling shareholder profit/loss)by the average of invested capital (the total of capital stock, interest-bearing liabilities as recorded in consolidated financial statements and project finance of the Ichthys downstream IJV) at the
beginning and end of the year.
3. ROIC by segment for 2022 is not shown as disclosure started in 2023.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Milestones and Business Policies by Business Field: Ichthys Project and O&G Business
Milestones in the Medium-term Business Plan 2022–2024
2022

2023

2024

Continue safe operation and increase production capacity
Confirmed an increase in capacity at facilities to produce 9.3 million tons per year; shipped 129 LNG cargoes in 2023

Aim for an annual production of 9.3 million tons

Conduct exploration activities and acquisition of interests in surrounding areas to continue plateau production

Ichthys ompleted exploratory well drilling in the WA-285-P Block, then started
C
exploratory drilling operations in the WA-343-P BlockAcquired a 74% interest in the AC/RL7 Block (Cash Maple), etc. through
INPEX Cash Maple Pty Ltd ontinue study to develop the AC/RL7 Block (Cash Maple)
C
Conduct 3D seismic data acquisition in AC/P66

Continue project evaluation for adding the third train to start operating in the 2030s
Acquire additional participating interest, etc. from Tokyo Gas Co., Ltd.

Abadi

PT Pertamina (Persero) and Petroliam Nasional Berhad (PETRONAS) joined
as new partners
The Indonesian government approved our revised development plan
incorporating CCS

Make necessary preparations for a final investment decision (FID), including
those for various surveys and front-end engineering design (FEED) work

Abu Dhabi[Offshore oil fields and onshore concession] Continue to work on enhancement of production capacity[Block 4] Conduct evaluation activities and aim for early start of production
Conducted drilling operations for exploratory/appraisal wells

Conduct evaluation activities to determine the potential for transition to thedevelopment/production phase

Secure stable revenues on the platform of newly acquired assets, promote development of discovered assets in surrounding areas and pursue exploration opportunities in the vicinity

O&G

NorwayAcquired three blocks for new exploration

Acquired three blocks for new exploration

Acquire five blocks for new exploration

Started to supply electricity to the Snorre Project from the Hywind Tampen
floating wind farmEnhance resilience of the supply system in Japan
Completed the first stage double tracking of the natural gas trunk pipeline “Ryomo Line”

To complete the fifth stage of construction of the Shin Tokyo Line

Continue steady and safe operation
Aim to improve resistance to low oil prices by reducing cost and improving technological capabilities through optimization of plant operations and maintenance and by improving plant reliability through suitable management

Japan

Expand reserves and maintain production volume of existing oil and gas fields
 xploration offshore San’in region
EIncreased production volume through fracturing work at Minami-Nagaoka
Well No. BD-10

Exploration of Green Tuff in Niigata onshore

Naoetsu LNG Terminal
Marked its 10th anniversary of commercial operation in December 2023

034

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

035

Project Overview: O&G BusinessMessage from the
Senior Vice President

Ichthys LNG Project

In production
Under explorationOP

Operator project
Key group company
headquarters and offices

DarwinIchthys LNG Project OP
G-7-AP(GHG storage assessment permit)

OP

Hitoshi
Okawa
Director, Senior
Managing
Executive Officer,
Senior Vice
President, General
Administration,
Senior Vice
President, Oceania
Projects

AUSTRALIA

Perth

Ichthys LNG Project Overview
Contract area
(block)WA-50-L/WA-51-L

Project status

In production

Production
capacity

LNG: Approximately 8.9 million
tons per year
LPG: Approximately 16.5 million
tons per year
Condensate: Approximately 100
thousand barrels per day (atpeak)

Venture company INPEX Ichthys Pty Ltd(established)(April 5, 2011)
CPF Ichthys Explorer

The Ichthys Project shipped 129 LNG cargoes in fiscal 2023,
a record high. Since beginning operations in 2018, backed
by the consistent efforts of on-site employees and manyothers involved and their high level of attention to maintaining stable operations, we have reached a cumulative
total of 1,000 cargo shipments for all products. In 2024, we
will aim for annual production of 9.3 million tons of LNG tocontinue stably supplying energy. We will also continue
with additional development and exploration of the surrounding areas to ensure the sustained growth of the Ichthys Project. Furthermore, we will keep on withdecarbonization initiatives such as the introduction of CCS
and afforestation, as part of our responsibility of addressing climate change to continue to operate in Australia.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

036

Project Overview: O&G Business

Project History

1998

Acquired an exploration permit in the block where the project is located2012

Final investment decision

2018

Commenced production

2023

Reached cumulative total of 1,000 cargo shipments for all products

Aiming to Both Expand in Scale and Supply Clean Energy

Current Project Status
Continuing Stable Production
The project commenced production in July 2018 and later began shipping condensate,liquified natural gas (LNG) and liquified petroleum gas (LPG). Stable production has continued since the launch of production in 2018, and the number of cargo shipments has
increased steadily every year. There are no plans for any large-scale shutdown maintenance in 2024, and we expect to ship around 11 LNG cargoes per month. We have alreadyensured an increase in facility capacity for production of 9.3 million tons per year, and assuming that operations are stable, we aim to build a framework in 2024 for producing 9.3
million tons per year.
In this project, we have finalized sales and purchase agreements for 8.4 million tons per
year, and approximately 70% of the LNG is destined for Japanese buyers. We produce
LNG equivalent to over 10% of Japan’s LNG import volume, and we will strive to provide astable supply of energy maintaining a high level of safety awareness in operations.
Number of LNG cargos

LNG long-term sales agreements

Target 11 cargos per monthAchieved 550 cargoes

104

122

117

112

129

Other
(30%)

Sales andpurchaseagreements
for 8.4 million
tons
For Japan(approx. 70%)

2019

2020

INPEX holds interests in 16 exploration blocks in the vicinity of this project and has discovered gas in several of these blocks. We will accelerate participation in exploration activities
in this area as well as the development of discovered assets to further ensure a sustained
production volume in the long term, and then aim to further expand production volume
visualizing the expansion of Ichthys in the future. We will also reduce CO2 emissions
through the introduction of CCS by the late 2020s to help decarbonize the project.

 Exploration activities in the vicinity

INPEX finished exploratory drilling in Block WA-285-P in 2023 and is conducting exploratory drillingin Block WA-343-P from 2023 to 2024. A 3D seismic data acquisition in Block AC/P66 is also planned
for the first half of 2024. Our aim is to discover promising petroleum and gas structures throughthese exploration activities.
 Participation in and development of discovered assets in the vicinity

In the blocks that we hold in the vicinity of Ichthys, multiple gas structures have been discovered
including Crown, Lasseter and Burnside. We also acquired a 74% interest in Block AC/RL7 (CashMaple) in 2023. Natural gas condensate fields have already been discovered at this block, raising
expectations that this will contribute to the long-term stable output of the Ichthys LNG Project going forward.
 Train expansion

In preparation for start-up around 2030, we are considering adding a train at the LNG plant after
confirming that reserves have been secured and other requirements met.
 CCS introduction

11
2018

Future Strategy

2021

2022

2023

In 2022, INPEX acquired a 53% interest in the G-7-AP (Bonaparte) GHG assessment block off thenorthwestern coast of the Northern Territory of Australia. We aim to inject CO2 from the Ichthys LNG
Project here starting in the late 2020s, and appraisal work is currently underway. We are also consulting with involved parties and making other efforts to contribute to the realization of such initiatives
as the NT Low Emission CCUS Hub* led by Australia’s Northern Territory Government.
* Commonwealth Scientific and Industrial Research Organisation (CSIRO) is leading the Development of the Low-emissions CCUS
Hub business case, in collaboration with the Northern Territory Government, INPEX and other industry participants.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

037

Project Overview: O&G BusinessMessage from the
Senior Vice President

Abadi LNG Project
THAILAND

Preparation for development
Renewable energy projectOP

PHILIPPINES

Operator project
Key group company
headquarters and offices

VIETNAMCAMBODIA

AkihiroWatanabe
Senior Vice President,
Asia Projects

MALAYSIA

SarullaGeothermal
Power Project

PALAU
Singapore

SINGAPORE
Muara Laboh
Geothermal Power Project
Rantau Dedap
Geothermal Power Project
Rajabasa
Jakarta
Geothermal
Power Project

INDONESIA

Abadi LNG
Project OP

Abadi LNG Project Overview
Contract area
(block)MaselaProject status

Preparation for development

Venture company INPEX Masela, Ltd.
(established)(December 2, 1998)
Abadi drilling ship

The Abadi Gas Field in the Masela Block located in the
Arafura Sea southeast of Indonesia is a huge gas field thatcan provide a stable supply of natural gas and support
our business development over the long term. Since
2020, the Abadi LNG Project has needed to respond tochallenges such as improving the project’s sustainability
with an eye toward energy transition. And in 2023, solutions came into view for the main challenges through developments including the participation of new partners
and the approval of the revised development plan incorporating CCS, paving the way to mobilizing the project. In
2024, we intend to steadily implement the revised development plan with the new partners in collaboration with
the Indonesian government.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

038

Project Overview: O&G Business

Future Strategy

Project History

1998

Acquired 100% interest in Masela Block

2000

Discovered Abadi Gas Field

2019

Received approval from the Indonesian government for the development plan toproduce 9.5 million tons of LNG per year2023

Pertamina and PETRONAS joined the project as new partners
Received approval from the Indonesian government for the revised development
plan incorporating CCS

Responding to Natural Gas Demand in Asia
While closely collaborating and cooperating with our new partners, PETRONAS and Pertamina, we intend to gradually resume project activities including various on-site work, aswell as move forward with front-end engineering design (FEED) work. In conjunction with
FEED, we will work on marketing, finance and other necessary preparations.

Current Project Status
Approval of Revised Development Plan and Participation of New Partners
This is one of the largest projects in Asia, and INPEX is participating as the operator. Oncelaunched, this project will enable the stable supply of energy over the long term in the
Asian region. Specifically, by liquefying natural gas from the Abadi Gas Field at an onshore
LNG facility, the project is expected to produce approximately 9.5 million tons of LNG peryear, up to 35,000 barrels of condensate per day and approximately 150 million cubic feetof natural gas per day.
The above-mentioned development plan was approved by the Indonesian government in
2019, but aspiring to make the project cleaner from the perspectives of ensuring long-termcompetitiveness and improving sustainability, we decided to introduce CCS and submitted arevised development plan to the Indonesian government in April 2023, which was approved in
December 2023. Additionally,
Development Concept
Indonesia’s Pertamina andMalaysia’s PETRONAS joined
Floating production, storage
the project as new partners in
Onshore LNG plantand off-loading facility (FPSO)
October 2023. Both partners
are companies with extensive
Condensate Off-loadingfrom FPSO to Tanker
experience in oil and gas deGas Export Pipeline Dry Gas_from FPSO
to onshore(GEP)
velopment in Indonesia andGas from Reservoir to FPSO
LNG projects globally.
Subsea, umbilical, riser andflowline system (SURF)

Carbon Capture and Storage(CCS)

Achievement of both cleaner energy and cost competitivenessRealizing a net zero carbon society is an urgent challenge. In this project, we plan to neutralize the CO2 emitted from natural gas production at the Abadi Gas Field through the introduction of CCS. This project is the first in which CCS costs are eligible for recovery based on
the production sharing contract framework governing upstream oil and natural gas projects
in Indonesia.
Note: Cost recovery in production sharing contracts:
Production sharing contracts are agreements by which an oil and natural gas development company serves as acontractor that undertakes at their own expense exploration and development work on behalf of the governmentsof oil-producing countries and receive hydrocarbons produced from the projects as cost recovery and compensation. That is to say, when exploration and development work results in the production of oil or natural gas, the contractor recovers the exploration and development costs it incurred by means of a share in the crude oil or natural
gas produced. The remaining portion is shared between the oil-producing country and the contractor according toa fixed allocation ratios.
These production sharing contracts are used in the development and production of oil and natural gas in Indonesia, but government approval is required when determining the extent of allowable cost recovery, and a greater
extent of cost recovery leads to improved cash flow and project economics for the contractor.

Improvement of energy security in Asian countries
Demand for natural gas as one of the main sources of energy in the energy transition period
is expected to remain robust in Asian countries. Taking advantage of the superb location ofthis large-scale LNG project, which is one of the few in the Asia Pacific region, we plan towidely market its LNG to buyers in Indonesia, where demand is expected to grow, as well as
to traditional LNG buyers in East Asia and emerging buyers in Southeast Asia, South Asiaand elsewhere.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

039

Project Overview: O&G BusinessMessage from the
Senior Vice President

Abu Dhabi

Hiroshi Fujii

OMAN
In production
Undeveloped
Crude oil pipelines
OP

Zirku Island

Abu Dhabi
Offshore Oil Fields

Abu Dhabi

OMAN
Umm Al-Dalkh
Oil Field

Abu Dhabi Onshore Concession Overview
UNITED
ARAB
EMIRATESSAUDI ARABIAOperator project
Key group company
headquarters and offices

Satah Field
Das Island Upper Zakum Oil Field
Lower Zakum Oil Field

Abu Dhabi
OnshoreConcession

Contract area
(block)Project status

Abu Dhabi Onshore BlockIn production
Further increase the daily
Target production
production capacity from its
capacity
current 2.0 million barrels per day
Venture company JODCO Onshore Limited(established)(April 15, 2015)

Abu Dhabi Offshore Oil Fields Overview
Contract area
(block)(1) Lower Zakum Oil Field(2) Upper Zakum Oil Field(3) Satah Field/Umm Al-Dalkh Oil Field

Project status

In production

Targetproduction
capacity

Venturecompany(established)
Abu Dhabi Offshore Oil Fields

Senior Executive Vice
President, Senior Vice
President, Abu Dhabi
Projects(1) Approximately 450 thousandbarrels per day(2) Approximately 1 million barrels
per day(3) Approximately 25 thousandbarrels per day / Approximately
20 thousand barrels per day
JODCO Lower Zakum(1)
Limited (January 25, 2018)(2) (3) Japan Oil Development Co.,
Ltd. (JODCO)(February 22, 1973)

At the Abu Dhabi Projects, in line with the aim of the Abu
Dhabi National Oil Company (ADNOC) to reach 5.0 million barrels per day of crude oil production capacity by
the end of 2027, INPEX is cooperating in the consideration and advancement of specific additional development plans in oil fields where it holds interests and is
working toward smooth project execution. In addition, bycooperating with ADNOC’s net zero by 2045 ambition
and its target of reducing GHG intensity by 25% by 2030,
we will further reducing carbon emissions and contributeto the stable supply of crude oil. In commemoration of
the 50th anniversary of our Abu Dhabi Projects in February 2023, we held a Board of Director’s meeting in Abu
Dhabi, the United Arab Emirates (UAE), in January 2023.
We are working to develop and produce clean energy
and to strengthen social contribution activities as outlined in the UAE Commitment Statement resolved at themeeting, and we will strive to maintain and develop relations between the UAE and Japan.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

040

Project Overview: O&G Business

Project History

1973

Began participating in development and production of oil fields offshore the UAE

2014

Extended the concession agreement for the Upper Zakum Oil Field (extended
again to 2051 in 2017 with a commitment to raise capacity to 1.0 million BD)

2015

Acquired a 5% interest in the Abu Dhabi Onshore Concession (ADCO) (to 2054)

2018

Acquired an interest in the Lower Zakum Oil Field (to 2058) and extended theconcession agreement for the Satah and Umm Al-Dalkh Oil Fields (to 2043)

2019

Exclusively awarded Onshore Block 4 as the operator in a block bid round

Future Strategy
Increasing the Production Capacity of Existing Oil Fields
The UAE is a crude oil-producing country with a low rate of greenhouse gas (GHG) emissions per unit of energy produced, and ADNOC has announced that it will raise production capacity to increase flexibility in responding to expanded global energy demand.
INPEX will cooperate with ADNOC by striving to increase the production capacity of oil
fields where it holds interests.

Current Project Status
Onshore Block 4

Abu Dhabi Onshore Concession

INPEX participated in the first-ever block bid round conducted by ADNOC in Abu Dhabi in
the UAE in 2018 and was exclusively awarded Onshore Block 4 as the operator. After drilling
exploratory wells from May 2021, we have discovered multiple oil and gas reservoirs. Currently appraisal work is underway aiming for early-stage development and productioncommencement.

INPEX acquired a 5% interest in this concession in
April 2015. The concession contains one of theworld’s largest deposits of oil. Stable production of
crude oil is currently underway from 11 deposits,
and plans are being considered to further increase
the daily production capacity from its current 2.0
million barrels per day.

Energy transition

Abu Dhabi Onshore Concession (oil processing facility)

Abu Dhabi Offshore Oil Fields
INPEX has been engaged in the development andproduction of oil fields offshore Abu Dhabi in the
UAE since 1973. INPEX is now participating in thedevelopment and production of four offshore oilfields, namely the Upper Zakum Oil Field, which isone of the largest in the world, as well as the Lower
Zakum, Satah and Umm Al-Dalkh Oil Fields. INPEX
was appointed as the asset leader of the Lower Zakum Oil Field concession by ADNOC. As asset
Zirku Island
leader, INPEX plays a leading role in advancing development and is working closely with ADNOC and its partners to lift the oil field’s production capacity to 450 thousand barrels per day.

The UAE is increasing the production of oil and natural gas to fulfill its responsibility as anenergy supplier, while at the same time advancing the expansion of clean energy includinghydrogen, ammonia and renewable energy toward the realization of a net zero society. INPEX also will promote low-carbon operations in existing projects based on ADNOC’s net
zero by 2045 ambition and its target of reducing GHG intensity by 25% by 2030, and is considering collaboration on clean energy projects with ADNOC and Abu Dhabi Future Energy
Company PJSC (Masdar), a renewable energy company.

Iraq

Iran

Onshore Block 4
Abu Dhabi

Saudi Arabia

Saudi Arabia

Oman

Block
0

100km

United Arab Emirates

Oman

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

041

Project Overview: O&G BusinessMessage from the
Senior Vice President

Norway Projects

In production

Under exploration

Renewable energy project
INPEX Idemitsu Norge AS
Newly awarded license (exploration)

3

Key group company headquarters and offices3

Munehiro
HosonoExecutive Officer,
Senior Vice President,
Europe & Middle East
Projects

2
2
0

100km

FINLANDSWEDEN

1
Offshore Wind
Power Generation
Business in the UK

UNITED KINGDOM
LondonNORWAY

0

100km

1

Oslo
ESTONIALATVIA
LITHUANIAGERMANY POLAND

Offshore WindCZECH REP.
Power Generation
Business in the Netherlands

BELARUS
Snorre Oil Field

UKRAINE

Tordis Oil Field,
Vigdis Oil Field

Duva Oil and Gas Field

Vega Gas/Condensate Field
Byrding Oil and Gas Field
Fram H-Nord Oil Field
Fram Oil and Gas Field
060km

Norway Projects Overview
Contract area
(block)Snorre Oil Field and otherprojects

Project status

In production (Snorre Oil Field,etc.), under consideration for
exploration/development

Venture company INPEX Idemitsu Norge AS(established)(September 25, 1989)
Hywind Tampen Floating Wind Farm Project

In our Norway Projects, INPEX promotes exploration, development and production in 34 blocks on the Norwegiancontinental shelf through its Norwegian subsidiary INPEX
Idemitsu Norge AS, and has achieved stable operations.
We intend to continue pursuing low-carbon operations inexisting oil and gas projects, while striving to acquire new
exploration blocks through bidding and build resiliency
through asset purchases and M&A, and also contribute toa stable energy supply. Norway is a global leader in renewable energy development including offshore windfarms and in carbon-reduction and decarbonization initiatives including CCS projects, in which CO2 is separated
and stored underground. In addition to the Hywind
Tampen floating wind farm in which we currently participate, we will continue to promote decarbonization, clean
energy and other initiatives by pursuing opportunities toparticipate in decarbonization and other projects.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

042

Project Overview: O&G Business

Project History

2021

Joined the Snorre Project2022

Acquired 50.5% of shares in Idemitsu Snorre Oil Development (new corporate
name: INPEX Norway)

2023

Commenced power supply from the floating wind farm to the Snorre production
facilitiesof the electricity needed for production at the projects, which had
previously been powered solely
by offshore gas turbines.

Current Project Status
Central Hub for Business in Europe
INPEX operates multiple projects through INPEX Idemitsu Norge AS (IIN), a wholly owned
local subsidiary of INPEX Norway. IIN owns interests in many oil and natural gas productionand exploration blocks in the northern North Sea, northern Norwegian Sea and Barents
Sea. The largest producer among these is the Snorre Oil Field, which commenced production in 1992. Production is underway at eight other oil fields including the Fram Oil Field,
Vega Gas/Condensate Field and Duva Oil and Gas Field. A large portion of the crude oiland natural gas produced is sold to the European market, making INPEX an integral partof the energy supply in Europe.

The World’s First Floating Wind Farm Starts Power Supply to Oil and Gas
Installations in Production
In May 2023, INPEX started supplying power to the Snorre Project from the Hywind Tampen
floating wind farm built nearby. To reduce CO2 emissions associated with production operations, the floating wind farm was built in collaboration with the Gullfaks oil field project
located nearby, and it supplies approximately 35% of the electricity required for the production operations of both projects. This is the world’s first floating wind farm to power oil
and gas installations in production.
The Hywind Tampen floating wind farm is one of the largest of its kind in the world
and consists of 11 wind turbines with a combined power generation capacity of 88
megawatts. It began supplying electricity to the Gullfaks oil field project in November
2022. The supply of offshore wind power to the Gullfaks and Snorre projects is expected
to reduce approximately 200,000 tons of CO2 emissions per year by replacing a portion

Hywind Tampen floating wind farm project concept

Future Strategy
Aiming to Develop Multiple Discovered and Undeveloped Oil and Gas Fields
INPEX participated in Norway’s Awards in Predefined Areas (APA) 2023 licensing roundthrough IIN and was awarded five production licenses in blocks located in the northern
North Sea, southern Norwegian Sea and northern Norwegian Sea. IIN is involved in stableproduction operations at the existing Fram and Snorre Oil Fields while actively promoting
exploration activities. The awarded licenses are expected to contribute to the further expansion of INPEX’s business portfolio. INPEX will continue to consider development ofmultiple discovered yet undeveloped oil and gas fields and aim for the stable supply ofenergy in this region.

INPEX’s Endeavors in Leading CCS Countries
Norway counts oil and gas development as a key business, but it is also a developed country in terms of initiatives in renewable energy development including offshore wind farms
and low carbonization and decarbonization initiatives including CCS projects which separate CO2 and inject and store it underground. Going forward, INPEX also will pursue opportunities to participate in decarbonization projects in this region and promote cleaner
business.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

043

Project Overview: O&G BusinessMessage from the
Senior Vice President

Yabase Oil Field

Japan

HiromiSugiyama

Oil and gas fields
Other project
Natural gas pipeline network

Managing Executive
Officer, Senior Vice
President, Domestic
Exploration &Production

Sekihara Gas Field(underground storage)

Toyama Line

Naoetsu LNG Terminal

Minami-Aga Oil Field
Minami-Kuwayama Oil Field
0

100km

Minami-Nagaoka Gas Field

Shin Oumi Line

Tokyo Line

Domestic natural gas
Domestic natural gas/
Regasified LNG

Sea of Japan

Echigo Line

Sekihara
Gas Field(underground storage)

Shin Tokyo Line

Shinetsu Honsen

Matsumoto Line
Ryomo Line

JoetsuShinkansen Line

Kofu Line
Iruma Line
Second Suruga
Shizuoka Line
Trunk Line
Sodeshi LNG Terminal[Shizuoka Gas]

Minamifuji Line
[Shizuoka Gas]

Koshijihara Plant

Minami-Nagaoka
Gas Field
Regasified LNG

Naruto LineGas field
Naruto Gas Field

Naoetsu LNG Terminal

Joetsu LineINPEX has conducted domestic natural gas and crude oil
exploration and development since the 1950s and has
supplied our products to local customers. The MinamiNagaoka Gas Field (Nagaoka City, Niigata Prefecture) is
one of the largest gas fields in Japan, and the gas
produced there, together with gas from the Naoetsu LNG
Terminal, which receives and regasifies LNG shipped fromthe Ichthys Project, is used by customers through apipeline network approximately 1,500 kilometers long.
The development of oil and gas fields in Japan ischaracterized by low country risk, and INPEX will continue
working to maintain and expand reserves and production
volume. Meanwhile, we are also boosting our initiatives
related to our 5 net zero businesses. We are proceeding
to build a methanation facility that uses CO2 emitted
along with gas from the Minami-Nagaoka Gas Field and ablue hydrogen and ammonia demonstration plant thatuses domestic gas, while constructing a framework for
operating these plants.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

044

Project Overview: O&G Business

Project History

1950s

Commenced natural gas exploration, development and production activities in Japan

1984

Commenced production at the Minami-Nagaoka Gas Field

2013

Started operation of the Naoetsu LNG Terminal

2018

Arrival of first carrier ship from Ichthys to the Naoetsu LNG Terminal

2023

100th ocean-going vessel, counting both LNG and LPG ships, arrived at Naoetsu
LNG Terminal

Current Project Status
Domestic Natural Gas Business

Future Strategy
Serving as a Key Player in Ensuring Stable Supply and ResilienceAs a leading Japanese energy development company, INPEX believes it is our mission tosecure domestic oil and natural gas. To supplement and expand reserves going forward,
we will perform an integrated appraisal of sea and land in core areas including Niigata, as
well as narrow down focus areas based on residual potential. As part of our global exploration strategy, we will also actively pursue an exploration strategy in Japan, one of ourcore areas. Of course, it is important to maintain a stable supply system in existing oil andnatural gas fields, but we are also striving to improve our resistance to low oil prices
through enhanced operational efficiency. We will reduce costs and improve technologicalcapabilities by centralizing plants and conducting in-house maintenance, and also improve plant reliability through suitable management.

Minami-Nagaoka Gas Field, Koshijihara/Oyazawa Plants
INPEX discovered the Minami-Nagaoka Gas Field in 1979. Offering great potential as a domesticenergy source, the Koshijihara Plant commenced gas production operations in 1984 (current processing capacity: 4.2 million normal cubic meters per day). The Oyazawa Plant has been operating
since 1994 (current processing capacity 1.66 million normal cubic meters per day). In December
2023, a pipeline was connected from the Oyazawa Plant to the Koshijihara Plant to allow processingof oil and gas from the Oyazawa Plant at the Koshijihara Plant.

Naoetsu LNG Terminal
The Naoetsu LNG Terminal (two 180,000-kiloliter LNG tanks) commenced operations in December
2013 at the Naoetsu Port, which is located in Niigata Prefecture’s Joetsu City and is a strategic placein INPEX’s natural gas pipeline network. The terminal regasifies LNG received from overseas, combines it with domestic natural gas produced in the Minami-Nagaoka Gas Field and adjusts the calorific value before delivering it to customers. Its maximum gas production capacity is 7.5 million
normal cubic meters per day (8.25 million cubic meters per day from April 1, 2024, due to capacity
revision of existing vaporizers), and the terminal began receiving LNG from the Ichthys LNG Projectin October 2018. Having celebrated the terminal’s 10th anniversary in December 2023, INPEX will
strive to continue stable operations there.

Natural gas pipeline
INPEX has maintained a pipeline network for the transport of natural gas since the 1960s. To provide
a stable supply of gas daily, INPEX works to operate, maintain and manage the pipeline, including
monitoring 24 hours a day and establishing emergency countermeasures. The natural gas from the
Naoetsu LNG Terminal is supplied to city gas companies and industrial customers through a natural
gas trunk pipeline network stretching across the Kanto, Koshinetsu and Hokuriku regions. This natural gas trunk pipeline is approximately 1,500 kilometers long, which is equivalent to the length of
Honshu, Japan’s largest island.

Responding to Diversified Customer Needs
In the Japanese market, customers now have diverse needs, including those for solutions
to deal with soaring energy prices, initiatives conducive to a net zero carbon society andmeasures to strengthen their resilience. INPEX addresses such needs by making proposals
for the introduction of carbon neutral gas, e-methane (synthetic methane) and renewablediesel (fuel derived from renewable resources), in addition to conversion from other fuels
to gas. Efforts are also made to help city gas providers serving as gas wholesalers by supporting their initiatives to respond to local expectations and needs through our INPEX 4U
Challenge Lab and partnerships with local governments. At the Naruto Gas Field in Chiba
Prefecture, natural gas is being
produced from water-soluble gas
Natural Gas Sales Volume in Japan
fields, and after extraction of the(100 million Nm3 per year)
3
natural gas from underground waNote: 41.86 MJ per 1 m
ter (brine water), the brine water is22.0 22.0
21.2 21.7
20.7
20.4
19.1
used to produce iodine, which is
18.0
17.9 17.5
17.5
exported to Europe, the United
15.1
States and elsewhere. The uses ofiodine are expected to expand anddiversify in the future, for example,
as a raw material for perovskite solar cells, which are attracting attention as next-generation solar cells.
2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2019/12 2020/12 2021/12 2022/12 2023/12(9 months)

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Milestones and Business Policies by Business Field: 5 Net Zero Businesses
Milestones in the Medium-term Business Plan 2022–2024
2022

2023

2024

Hydrogen and ammonia

Japan: Commenced construction of integrated demonstration and testing facility for blue hydrogen and ammonia project; completion targeted for 2025
Overseas: Promoted business expansion through feasibility studies and collaboration, aiming for development of large-scale business[United States] • Commenced pre-FEED for a large-scale low-carbon ammonia project on the Houston Ship Channel in Texas, progressing toward completion by the end of 2024
• Concluded a joint initial study for a green hydrogen project in South Texas; now considering transition to pre-FEED[Abu Dhabi] Concluded a joint study agreement for the verification of GHG emissions at an ammonia production project implemented by ADNOC[Australia] Concluded a memorandum of understanding to conduct a joint feasibility study for a hydrogen hub project in New South Wales, South Australia and the Northern Territory, and a commercial viability assessment is underway

CO2EOR demonstration (Agano City, Niigata Prefecture): Finished drilling and CO2 injection test in 2023; consider shifting to the next phase

CCUS

Ichthys LNG Project CCS (Australia): New 3D seismic survey and drilling work is planned in 2024 in the Bonaparte Basin off the coast of the Northern Territory of Australia
Aim to inject 2.0 million tons or more CO2 per year as the first step in the second half of the 2020sJapan: Two projects selected for survey commissioned by JOGMEC; aim to commence CO2 injection in 2030

Building a renewable energy-based power supply value chain:
Acquired 50% of the shares of Enel Green Power Australia (EGPA).

Steady operation and development activities in existing assets.
Planning to make FID on Quorn Park solar & battery project and other projects.

Acquired a 16.7% stake in the Moray East offshore wind farm

Identify new projects

Started participation in the Rajabasa Geothermal Power Project

Aim to reach FID for the Phase 2 expansion of the Muara Laboh Geothermal
Power Project

European offshore wind farms

Renewable energy

5 Net Zero Businesses

CO2EOR business (Abu Dhabi): Aim to increase CCUS capacity of Abu Dhabi onshore block with ADNOC from the current 800 thousand tons per year

Acquired a 50% stake in the Luchterduinen offshore wind farm and a 15%
stake in the Borssele III/IV offshore wind farm
Geothermal projects
Joined the Rantau Dedap Geothermal Power Project

Domestic geothermal projects
Decided to shift to power plant
construction stage at Katatsumuri
Yama Power Plant egin land development in preparation for geothermal drilling survey in
B
Senpo, Hokkaido

ForestMethanation conservation

Nagaoka City, Niigata Prefecture: Commenced construction of the world’s largest methanation demonstration facility, aiming for commissioning in 2025
Abu Dhabi: Complete commercialization studies of e-methane business in Abu Dhabi, and decide whether to shift to pre-FEED
Started collaborating with ANZ Bank and Qantas Airways on carbon farming and biomass fuel business in Australia
Consider participation in projects in addition to acquiring credits from leading forest conservation projects

045

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

046

Milestones and Business Policies by Business Field: 5 Net Zero Businesses

Message from the Senior Vice
President of the Renewable
Energy Division

Message from the Senior Vice
President of the Hydrogen &CCUS Development Division

INPEX is working to accelerate various renewable energy projects, including the operationof existing offshore wind farms and geothermal power projects in Europe and Indonesia,
as well as the appraisal of geothermal resources in Shibetsu District, Hokkaido Prefecture, the construction of a geothermal power
plant in Yuzawa City, Akita Prefecture and afloating wind farm project offshore Goto, Nagasaki Prefecture, and a strategic partnershipwith Enel Green Power S.p. A. We achieved
renewable power generating capacity of 500
MW as targeted in INPEX Vision @2022, but
we will continue to pursue the development
and stable operation of domestic and overseas projects, further expand M&A projects,
and work to realize a net zero carbon society
by 2050.

This Division is responsible for the areas of hydrogen, CCUS and methanation, in which great
progress was achieved during 2023 includingcommencing construction of a demonstrationand test facility and conducting commissioned
surveys. These areas have not yet been established as businesses, and there are various challenges such as how to put together andcommercialize projects. Other issues include
technological innovation, value chain building,social acceptance, the strengthening of public-private partnerships, legislation and support
systems. Considering this rapidly changing
business environment as a business opportunity, as a pioneer in energy transformation, we
will continue to work toward achieving the targets in INPEX VISION @2022 and to promote
initiatives toward realization of a net zero carbon society by 2050.

Main projects in 5 net zero businesses

Kenji Kawano
Representative Director, Senior Executive
Vice President, Senior Vice President,
Renewable Energy

Responsibilities
Renewable energy

Indonesia
 eothermal powerG
generation (Muara
Laboh, Rantau Dedap,
Sarulla, Rajabasa)

UK and the Netherlands
Luchterduinen offshore wind farm
Borssele III/IV offshore wind farm
Moray East offshore wind farm

P.049

Australia
Bonaparte CCS assessment joint venture
Renewable energy joint venture with EGPA
Carbon farming

Shoichi Kaganoi
Executive Officer, Senior Vice President,
Hydrogen & CCUS Development

Responsibilities
Hydrogen and ammonia

P.047

CCS/CCUS

P.048

Methanation

P.048

United States

Japan

Blue ammonia businessGreen Hydrogen Project

Methanation in Niigata PrefectureBlue hydrogen/ammonia in Niigata PrefectureTokyo metropolitan area CCS project and the
Tohoku region west coast CCS project
Geothermal power plant in Akita Prefecture
Floating offshore wind farm in Nagasaki Prefecture

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

047

Project Overview: 5 Net Zero Businesses

Hydrogen and Ammonia
Japan’s First Integrated Demonstration of Hydrogen and Ammonia
Production and Usage: Surface Plant
2025

Schedule

Complete construction and commence commissioning

Hydrogen production
CO2 capture

Injection/observation/production wells
CO2 compression

Ammonia
production

Control room

Blue Ammonia Project on the Houston Ship Channel, Texas
Schedule

Aim for commercial production of 1.1 million tons of blue
ammonia per year

INPEX, Air Liquide Group (AL), LSB Industries (LSB) and Vopak Moda Houston (VMH) commenced the pre-FEED for the development of a blue ammonia project using an existing
ammonia terminal on the Houston Ship Channel in Texas. The Port of Houston is in the
Gulf of Mexico but close to the open ocean, and there are natural gas, hydrogen, CO2 andother pipelines nearby, leaving room to expand production in the future at the secured
site. Currently sales discussions are underway with potential off-takers in East Asia including Japan.

Hydrogen power
generation

Feed gas receiving

INPEX’s integrated demonstration of blue hydrogen and ammonia production and usageis the first project in Japan to build an integrated hydrogen and ammonia value chain fromproduction to usage. Hydrogen and ammonia are forms of clean energy that do not generate CO2 when used. INPEX commenced construction of surface plant facilities in 2023.
Natural gas produced at the Minami-Nagaoka Gas Field that INPEX operates in Niigata
Prefecture will be used as raw material. The CO2 generated during the production process
will be separated, pressurized and injected in a subsurface gas reservoir in the Hirai areaof the Higashi-Kashiwazaki Gas Field, where gas production has already been terminated,
as a carbon dioxide capture, utilization and storage (CCUS) effort to reduce emissions into
the atmosphere. Hydrogen produced in this manner is referred to as blue hydrogen. Blue
hydrogen produced in the demonstration test will be converted into electricity through ahydrogen power generation system and supplied to end users in Niigata Prefecture. Someof the blue hydrogen will be used to produce blue ammonia with the aim of supplying it
to customers in Niigata Prefecture.

2027

Houston ship channel in Texas

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

048

Project Overview: 5 Net Zero Businesses

CCS/CCUS

Methanation

Awarded GHG Assessment Permit (G-7-AP) Off the coast of
Northern Territory, Australia
Schedule

2024

Commence new 3D seismic data acquisition and drilling ofassessment well

INPEX was awarded a GHG assessment
permit (G-7-AP) in August 2022 with TotalEnergies CCS Australia and Woodside Energy. We are currently conducting
appraisal work, and considering this as
an opportunity for underground injection and storage of CO2 emitted fromthe Ichthys LNG Project, we aim to start
injecting more than 2.0 million tons of
CO2 per year as the first step in the late
2020s.
We believe this will also contributeto such efforts as the NT low emission
CCUS hub* project led by the government of the Northern Territory ofAustralia.

Technical Development Initiative for CO2 Emissions Reduction and Practical Applicationof Effective CO2 Use through One of World’s Largest Methanation Operations
2025

Schedule

Commence
commissioning

2026

Completeconstruction

INPEX and Osaka Gas launched a joint technical development initiative targeting thepractical application of a CO2-methanation system aimed at the carbon neutralization ofnatural gas, based on a subsidized project commissioned to INPEX by the New Energy
and Industrial Technology Development Organization (NEDO).
An engineering, procurement and construction (EPC) contract was signed with Chiyoda
Corporation and construction commenced in 2023 on a test facility capable of producing
400 normal cubic meters of methane per hour, equivalent to the amount of methane consumed by about 10,000 households in Japan per day. The test facility will consist of methanation, raw material supply, utility equipment and other components, and is planned tobe connected to the Koshijihara Plant at INPEX’s Nagaoka Field Office in Nagaoka City,
Niigata Prefecture. The project is scheduled to consist of a demonstration test involving
the production of synthetic methane using CO2 extracted from INPEX’s Nagaoka Field
Office beginning in fiscal 2025 and introduction of the produced synthetic methane into
INPEX’s natural gas trunk pipeline for delivery to customers.
G7-AP block location*Commonwealth Scientific and Industrial Research Organisation (CSIRO) is leading the Yevelopment of the Low-emissions CCUS
Hub business case, in collaboration with the Northern Territory Government, INPEX and other industry participants.

Rendering of completed plant

Reactor area

Liquified H2 storage & supply area

Ground flare

CO2 compressor

Awarding of “Survey on Implementation of Advanced CCS Projects”
Contract
The Tokyo metropolitan area CCS project and the Tohoku region west coast CCS project
were officially selected by the Japan Organization for Metals and Energy Security (JOGMEC) in a public offering for the “Survey on the implementation of advanced CCS projects.” With a view to being selected in the next phase as advanced CCS projects, we willproceed to consider commercialization and aim to commence operations in 2030.

Utility area

Admin building

Southern gate
Liquified CO2 storage & supply area

Termination of connecting piping(4m x 6m)

Regulating
reservoir

Northern gate

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

049

Project Overview: 5 Net Zero Businesses

Renewable Energy
Renewable Energy Business in Australia with Enel Green Power S.p.A.
Schedule

By 2030

Offshore Wind Farm in Europe

Aim for development of one to two gigawatts in net power
generation capacity

INPEX acquired 50% of shares in Enel Green Power Australia Pty. Ltd (EGPA) from Enel
Green Power S.p.A. (EGP), a subsidiary of Italian utility company Enel S.p.A. and one of theworld’s largest renewable energy companies, and agreed as 50:50 strategic partners totarget business expansion throughout Australia. While engaging in the management of
EGPA’s current portfolio, we will proceed to select and develop excellent, highly profitable
new power generation assets with the target of further increasing power generation capacity. Additionally, EGPA promotes a value chain business model to maximize businessvalue by supplying clean electricity in response to customer needs through storage batteries and retail electricity trade. Taking advantage of this partnership, INPEX will seek tocontinue building a multi-layered renewable energy revenue stream.

Luchterduinen offshore wind farm project

Bungala 1&2 PV projectIn addition to our 50% stake in the Luchterduinen offshore wind farm off the coast of theNetherlands in 2022, INPEX acquired a 15% stake in the Borssele III/IV offshore wind farm.
The Luchterduinen offshore wind farm has been in commercial operation since September
2015 with an output scale of 129 megawatts produced by 43 3-megawatt units. The Borssele III/IV offshore wind farm has been in commercial operation since January 2021 with an
output scale of 731.5 megawatts produced by 77 9.5-megawatt units. In March 2023, INPEX also acquired a 16.7% stake in the Moray East offshore windfarm currently in operation
off the coast of Scotland. The Moray East offshore wind farm has been in commercial operation since April 2022 with an output scale of 950 megawatts produced by 100 9.5-megawatt units. We will continue striving to expand our wind power business to realize a net
zero carbon society by 2050.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

050

Project Overview: 5 Net Zero Businesses

Geothermal Power Projects in Indonesia
Schedule

By the endof 2024

Aim to reach FID for the Phase 2 expansion of the Muara Laboh
Geothermal Power Project

INPEX has joined four geothermal power projects (Muara Laboh, Rantau Dedap, Sarulla andRajabasa) located on Sumatra Island, Indonesia. Among these, the Muara Laboh Geothermal Power Project, Rantau Dedap Geothermal Power Project and Sarulla Geothermal Power
Project are in commercial operation. Combined, these three projects provide a power generation capacity of approximately 513 megawatts, an output equivalent to what is consumed
annually by the approximately 2.9 million households in Sumatra. Electricity generated by
the plants using geothermal resources is planned to be marketed to the Indonesian national
power company over the period of about 30 years from the start of commercial operation.
For the Rajabasa Geothermal Power Project, which is still in the exploration stage, surface
and geophysical surveys have indicated a certain potential for geothermal resources. If sufficient geothermal resources are locatedthrough exploration activities to warrant thedevelopment of the project, this is expected
to contribute to the further expansion of INPEX’s geothermal business in Indonesia. We
will strive to expand our geothermal business in Indonesia through new explorationand other activities.
Muara Laboh Geothermal project

Promotion of Geothermal Power Generation Projects in JapanIn June 2022, INPEX decided to enter into the construction phase of a geothermal power
plant (Katatsumuri Yama Power Plant, output: 14,990 kilowatts) in Yuzawa City, Akita Prefecture, and is currently progressing construction of said plant. The power plant will be built
halfway up Katatsumuri Yama Mountain, and operation will be carried out by Oyasu Geothermal Co., Ltd. (established in September 2018), which is owned by three companies,
Idemitsu Kosan Co., Ltd. and TEPCO Renewable Power, Incorporated, in addition to
INPEX. The plant is scheduled to commence operations in March 2027.

INPEX has also been investigating geothermal potential in the Mt. Sempo area of Shibetsu Town in the Shibetsu County of Hokkaido Prefecture (hereafter referred to as the Mt.
Sempo area), and has begun preparatory work for drilling of exploratory wells in this area.
Based on the evaluation through surface and geophysical surveys, etc. in the past, as well as
results from other wells nearby, the existence of some degree of geothermal resources has
been confirmed in the Mt. Sempo area. If exploratory well drilling confirms sufficient geothermal resources to move toward development, we expect this area will help further expansion of domestic power generation projects that contribute to net zero led by INPEX.

Forest Conservation
Forest Conservation Projects
Schedule

By 2030

Aim to acquire about 2.0 million tons of forestation credits
per year

In August 2023, INPEX started planting trees in collaboration with the Bank of Australia
and New Zealand and Qantas Airways under the carbon farming and biomass fuel projectin Australia.
We will continue to consider
participation in other projects inaddition to acquiring credits
from leading forest conservation
projects.

Preparation for tree planting

Preparation for tree planting

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Technical Strategies
Research and Development System

Message from the Senior Vice President

Hideki KurimuraManaging Executive Officer,
Senior Vice President, Technical
Headquarters and Senior Vice
President, Innovation, HSE

To continue providing a stable supply of energy while pursuing decarbonization, it is essential that we acquire technology to achieve cleaner
outputs and more cost-competitive results. That is to say, we must improve our technological prowess in oil and natural gas development
and apply these technologies to underground CO2 storage and geothermal power generation, while also vigorously promoting the development of competitively advantageous energy transformation (EX)technologies including CO2 capture and transport, hydrogen production and transport, clean fuel production and carbon recycling and energy storage. To this end, INPEX formed the Innovation Division in
addition to our Technical Division as a base for our EX-related technological research and development. While pursuing our own researchand development and strengthening our industry-government-academia partnerships including collaboration with start-ups, we will aim toaccelerate research and development, acquire technologies that can be
implemented in society at an early stage and create businesses.

INPEX established the Innovation Division in
January 2024 to organically link technological R&D, collaboration with start-ups andbusiness exploration, and accelerate the implementation of EX.
The Innovation Division’s I-RHEX Unit will
use the commercial affairs function of the
New Venture Unit to develop clean energy
technologies with commercialization inmind from the initial stages of research anddevelopment.

Technical Division

Technical Planning &Coordination Unit
Projects Support Unit
Technical Lead Unit
Well Engineering Unit
Research Unit

Innovation Division

New Venture Unit
I-RHEX Unit

Basic Policies of Technical Strategies
About I-RHEX

To further promote these points, we will work to strengthen the INPEX Research Hub forEnergy Transformation, or I-RHEX for short, enhance our digital infrastructure and bolster
the capabilities of our human resources.
2022

New
Technology

1 
We will focus on gaining more cost-​

competitive results with cleaner outputs, shifting to gas as the mainenergy source and realizing early project development.

2 We will use the cutting-edge technol-

ogy acquired via our oil and gas development business for environmentallyfriendly projects including CO2 captureand storage, geothermal power generation and offshore wind power.

(R&D)

E&P
Technology

SAF
Methanation

RenewableenergyCO2
capturing
DAC(geothermal,wind)

Oil andGas E&P

CCS
Realize
decarbonization
technology

3 We will recognize and generate innova-

tive and practical technologies that
support decarbonization, such as thoselinked to hydrogen and ammonia
generation and methanation.

HydrogenAmmonia

Streamline anddecarbonize
Oil and Gas E&P

Establish competitive
advantage in the areaof renewable energy
and CCS

2030

I-RHEX was established within the Technical Research Center in April 2022 as an R&D hub
for networks involved in the development and advancement of clean energy technologies,
with the aim of strengthening the functionality of our organizational framework to pursue
the strategies and plans outlined in INPEX Vision @2022. I-RHEX was elevated to the unit
level upon establishment of the Innovation Division and the unit aims to accelerate R&D inclean energy technology, which it has pursued since its inception, and achieve early social
implementation.
Reduce cost of hydrogen
The main areas of our R&D
production technology
Systematize and enhance CO
are (1) CO2 capture technologies;
Combine hydrogen production
capture and storage technology
and CCUS technology(2) CO2 transport technologies;(3) transport technologies for hyE&P
drogen, ammonia and other subCCS
Hydrogencore
CarbonRenewable
CCUS
Ammoniastances; (4) next generation fuels
recyclingenergytechnology
and clean technologies.
2

Develop technology through R&D

051

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Technical Strategies

R&D Themes
Oil and Natural Gas Business
Case 1Investigative research on geophysical exploration to improve the accuracy ofunderground imaging and reduce the time and costs involved

To efficiently develop oil and gas fields, as well as safely monitor underground CO2 storage, INPEX
is working to improve the accuracy of underground imaging using geophysical exploration and to
shorten the time and lower the cost of geophysical exploration operations. We are proceeding withfield-scale demonstration tests of advanced geophysical exploration techniques including blending/deblending, dispersed source array and compressive seismic imaging, as well as high-density
data recording and processing techniques using low-cost optic fiber cable that is resistant to hightemperature and high pressure environments, with the aim of applying these to our oil and gas fielddevelopment projects and underground CO2 storage projects.
Case 2  CO2EOR

CO2 enhanced oil recovery (CO2EOR), which involves the injection of CO2 into oil reservoirs, is aremarkable technology that helps increase oil recovery and can contribute to resolving environmental issues through the storage of CO2 underground. But because CO2 has low fluid density and viscosity compared to oil, it selectively penetrates the upper areas and highly permeable areas of theoil reservoir, and this sometimes results in large amounts of unrecovered oil. We are researching anddeveloping special technologies to recover underground oil more efficiently by mixing CO2 andwater to create foam or by mixing CO2 and a thickener to increase viscosity, resulting in a substancethat flows more slowly than CO2 alone.
Case 3

 pplication of advanced completion techniques to the development of tightA
reservoirs

In general, most natural gas fields in Japan have tight reservoirs, which may cause trouble when gas
is produced from these reservoirs and when CO2 is injected into water layers in the vicinity of the gas
field. INPEX will pursue additional R&D on tight reservoir completion techniques acquired throughprevious domestic gas field development projects, aiming to implement demonstration projects at
our existing gas fields for advanced completion techniques including CO2 fracturing and thermal
fracturing.
Case 4

Application of robot technology to production facility maintenance

INPEX is actively working to apply robot technology to production facility maintenance on a trial
basis. We are developing efficient and highly reliable maintenance methods by combining innovative ideas with the latest technologies. Applying robot technology will make it possible to collect
maintenance data relatively quickly from places that are difficult for humans to directly access. Our
aim is to minimize production facility shutdown time and improve the accuracy of accident andtrouble prevention maintenance.

5 Net Zero Businesses
Case 1

Evaluation of potential reservoir for CO2 capture and storage

Carbon dioxide capture and storage technology (CCS) involves injecting CO2 into the ground. For
the effective storage of CO2 underground, a suitable distribution of both permeable and impermeable rocks is necessary. One such example is a combination of sandstone that enables the injectionof CO2 and mudstone that seals the injected CO2 and prevents leakage to the surface. Overall, thiscombination of sandstone and mudstone is crucial for the formation of certain oil and gas fields.
Therefore, expertise in geology and geophysics, which is necessary for exploring hydrocarbons, isalso used to choose suitable sites for CO2 injection. INPEX has conducted exercises to select CCS
sites both in Japan and abroad.
Case 2

Hydrogen and ammonia

One initiative in our hydrogen and ammonia business has involved building a blue hydrogen* andammonia production demonstration plant in Kashiwazaki City, Niigata Prefecture, and we plan tostart its operation in 2024. INPEX is also examining sites for the construction of a large-scale cleanammonia production plant in Abu Dhabi, UAE. We will explore transport and storage technologies,
both essential elements of the hydrogen supply chain, as part of I-RHEX’s technical research.
*Blue hydrogen is a type of clean hydrogen produced through the steam methane reforming of natural gas, combinedwith the capture and underground storage of CO2 produced during the process, and it contributes to preventing global
warming.
Case 3

Methanation

Methanation is a technology involving the reaction of CO2 and hydrogen to synthesize methane, themain component of city gas. Synthetic methane can be supplied to customers through existing gas
infrastructure so it can help promote the decarbonization of society, including sectors in which electrification is difficult, without requiring large infrastructure costs. From 2017 to 2021, INPEX undertook basic technical development of CO2 methanation at its Koshijihara Plant, Nagaoka City, Niigata
Prefecture. The plant has been conducting a demonstration test including methanation at a rate of
400 normal cubic meters per hour since 2021.
Case 4 DAC

As a negative emissions technology,* direct air capture (DAC) is essential for a net zero carbon society. With DAC, CO2 is captured directly from the atmosphere and, in combination with underground storage, the technology enables the reduction of CO2 from the atmosphere. I-RHEX isdeveloping a DAC system that uses a special absorbent amine solution that solidifies when it absorbs CO2.
*Technology that contributes to the removal of CO2 from the atmosphere by capturing, absorbing, storing and fixing atmospheric CO2.

DX Strategy The utilization of digital technology is a key pillar of our activities. See the following for details

052

INPEX CORPORATION Integrated Report 2023

A Company
Capable of
Sustainable
Development

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

053

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

054

Sustainability Management
INPEX’s basic approach to sustainability management is to promote both a stable supply of energy and energy transition initiatives, while addressing climate change and other sustainability issues through its business and value chains.
Our sustainability management activities focus on the six Sustainability Material Issues of greatest importance to our business and our stakeholders. They are governance, compliance, climate change, health, safety and environment, local communities, and human capital.

Sustainability Governance Structure

Sustainability Material Issues

General Meeting of Shareholders
Nomination and Compensation
Advisory Committee
INPEX Advisory Committee

Board of Directors

Audit & Supervisory Board

Executive Committee

Sustainability Committee
Compliance Committee

Information Security
Committee

Corporate HSE Committee

INPEX Value Assurance
System (IVAS) Committee

Sustainability Working
Group
Climate Change Strategy
Working Group

Chaired by our Representative Director, President & CEO, our Sustainability Committee
was established to clearly communicate our senior management executives’ vision for sustainability, discuss basic policies for sustainability, and promote Group-wide and systematic sustainability practices. The members include Representative Directors, the SeniorVice President of the General Administration Division, and the Senior Vice President of the
Corporate Strategy & Planning Division (Vice-chair of the Sustainability Committee). The
Chairs of our Compliance Committee and Corporate HSE Committee also attend themeetings to facilitate collaboration with their respective committees. The Sustainability
Committee met three times in FY2023, and the matters addressed at those meetings werealso discussed at Executive Committee and Board of Director meetings.
Under the Sustainability Committee, we have established a Sustainability Working
Group and Climate Change Strategy Working Group, which comprise operational-level
members from various divisions to support Group-wide, cross-sectional consultation.
To support our business and sustainability objectives, we participate various organizations.
Please click here for more information.

We have identified six of the seven core sustainability themes in ISO 26000 as areas of highimportance for the Company and our stakeholders, and these form our Material Issues.
We have also identified priority actions (Key Tasks) for each Material Issue area and embedded these Key Tasks into our PDCA cycle to enable continuous improvement. In 2017,
we reviewed and revised each Key Task through a four-step prioritization process (1. Issue
identification and gap analysis; 2. Stakeholder dialogue; 3. Issue prioritization; and 4. Management review). This review also incorporated the perspective of the United Nations Sustainable Development Goals (SDGs).
In March 2022, we reviewed our Key Tasks following dialogues with major stakeholders
which were conducted concurrently with the announcement of our Long-term Strategy
and Medium-term Business Plan (INPEX Vision @2022) during the previous month. Our
Material Issues and Key Tasks are reviewed annually through engagement with internaland external stakeholders. The results are approved by the Sustainability Committee
chaired by the Representative Director, President & CEO and reported to the Board of
Directors.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

055

Risk Management
INPEX is committed to accurately identifying and assessing the complex and diverse risks inherent in its business environment, while establishing appropriate risk prevention and mitigation measures to help minimize risks. In addition to preparing for largescale natural disasters and epidemics, we also address risks related to the business environment such aschanges to economic and social conditions or laws and regulations, as well as risks that exist in each process of our business. This includes exploration, production, transportation, andsales. We have established internal controls under Japan’s Financial Instruments and Exchange Act—nown as “JSOX”—based on the Committee of Sponsoring Organizations of theTreadway Commission (COSO) framework, and each business division also conducts risk management related to occupational health, safety, and environmental protection using our
HSE* Management System. Additionally, we analyze the impact of fluctuations in crude oil prices and foreign exchange rates on our net income and disclose this information at every
financial result briefing.
*HSE: Health, safety, and environment

Risk Management Structure

Main Business Risks

We strive to continuously improve our risk management structure, which is designed toappropriately identify and manage the risks associated with our business operations. We
have established a structure to prevent, or otherwise mitigate, adverse impact. This helps
us to maintain and reinforce the trust of our customers, business partners, investors, andother stakeholders, and maximize our corporate value.

The main risks in our business operations are outlined below, and basic measures for dealing with each are defined. Furthermore, we utilize risk maps to analyze specific and current
risks affecting our business strategies, including risks that have already manifested themselves, from the perspectives of impact and likelihood affecting the business and financial
performance. We define our response policies based on the urgency and impact of theserisks, and promptly implement countermeasures.

Risk Governance Structure
Major

Nomination and Compensation Advisory Committee
INPEX Advisory Committee

ImpactFeedback

ReportingExecutive Committee
Compliance Committee
Sustainability Committee
Corporate HSE Committee
Information Security Committee
IVAS (INPEX Value Assurance System) Committee

Department Level Action Plans andFiscal Year Plans & Targets

J oint Venture (Risks related tocooperation with partners) ependence of production volume on
D
specific regions and mining areas
Contract period (Risks related to contract
renewal, contractual terms, etc.)
Risk of change in reserves of crude oil,condensate, LPG, and natural gas
Operatorship (Risks related to securing
talent, cost sharing, etc.)
Risks attributable to a large capital investment
and lengthy period of recovery of funds forthe oil and natural gas development businessImpact on financial results from fluctuationsin oil prices and natural gas prices*Country risks in overseas businessPhysical risks related to climate changeImpact on financial results fromfluctuations in foreign exchange rates*
Impact on financial results fromfluctuations in interest rates*
Risk of failure in exploration
Risks related to future abandonment

Minor

Corporate Level Action Plans

Approval

Discuss and decide plans for comprehensive management andactions for material risks

Moderate

Long-term Strategy andMedium-term Management PlanINPEX Vision @2022

Exercise adequate supervisory functions and ensure fairness
and transparency in management

Approval

Board of Directors

Transition risks related to climate changeRisk of disasters, accidents, system failures isk of failure in development or production
R

Low

High

Likelihood

Departments and subsidiaries
Organize risk management system/documents

MediumRisk identifcation* Depending on market conditions, there may also be a positive effect on the Company’s financial results

Plan

Do
Check

Risk action/management
Risk monitoring/reporting

ActionRisk analysis/assessment

Key control measures for managing various risks
Climate change-related transition risks
control measures

Project risks control measuresIntroduction of clean energy and CO2 emission
reduction measures ross-organizational technical evaluationC(IVAS Committee)• 
Periodical economic and risk evaluation

Market risks control measures

Operational risks control measures

•

•

•

Financial risk management

Country risk control measures• etting a maximum target of accumulated investS
ments in high-risk countries•

 ormulation of Emergency and Crisis ReF
sponse Plan, regular drills
Formulation of Business Continuity Plan (BCP)• 
Information Security Committee, educationand training• isks related to the characteristics
Rof the oil and natural gas
development business isks related to oil prices, naturalRgas prices, foreign exchange
rates, and interest rates
Climate-related risks
Overseas business andcountry risks

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Sustainability Material Issues: Targets and Achievements
Material issues

Key tasks

FY2024 targets

Medium- to long-term targets,
initiatives, and directions

Enhanced the corporate governance structure through appropriate operation of theBoard of Directors, evaluated the effectiveness of the Board of Directors using athird-party evaluation organization, and continued implementing the PDCA cycle
Built relationships between the Board of Directors and local stakeholders, such as
partners and local communities (held Board of Directors meetings in countries inwhich we operate)Responded to revisions of the Companies Act and the Corporate Governance Code,and to Tokyo Stock Exchange reforms

Enhance the corporate governance structure through appropriate operation of theBoard of Directors, and evaluate the effectiveness of the Board of Directors and continue implementing the PDCA cycle
Continue holding comprehensive discussions in Board of Directors meetings (in particular, active discussions that contribute to formulation of the next Medium-term
Business Plan)

Published a skill matrix for Directors and Audit & Supervisory Board Members
Conducted a site visit to the Ichthys LNG plant in Darwin, Australia, for Outside Directors and Audit & Supervisory Board Members
Discussed the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee

 xpand disclosure of skill matrix details
EFurther enhance the governance structure for the nomination and compensation of
Directors
Discuss the nomination and compensation of Directors with the appropriate involvement of the Nomination and Compensation Advisory Committee
Appoint an Outside Director as the Chairman of the Nomination and Compensation
Advisory Committee to strengthen the independence of the Committee

 ssessed state of tax compliance in each country through centralized management ofA
tax information

Enhance the global tax governance structure through close communication with overseas sites

 eld 28 INPEX Value Assurance System (IVAS) Committee meetingsHProvided the Board of Directors with an executive summary of risk assessment results
for major projects

Hold IVAS Committee meetings as neededReport progress and action plans for each of our projects, including the net zerobusinesses, at the monthly Board of Directors meetings eld two Information Security Committee meetings
HHeld one training session on targeted email attacks
Conducted one e-learning lesson on information security
Conducted a security assessment of operating systems

Hold two Information Security Committee meetings
Hold two training sessions on targeted email attacks
Conduct one e-learning lesson on information security
Conduct a security assessment of operating systems

 romoted head office-based business continuity management (BCM) activities forPearthquake scenarios, and provided BCM education and training for employees
Revised the head office business continuity plan (BCP) for infectious disease scenarios
based on verification and assessment of COVID-19 responses

 romote head office-based BCM activities for earthquake scenarios, and provideP
BCM education and training for employees

 ontinue self-assessment surveys (including questions on human rights and ABC
Cmeasures) by major domestic suppliers and contractors
Continue risk assessment of major suppliers and contractors (including with regard tohuman rights and ABC measures), and improve the methods used for risk
assessment
Participate in the supply chain subcommittee of the Global Compact Network Japan
Conduct CSR audit to suppliers (paper and on-site audits)
Hold a Supplier Forumtrengthen supply chain risk assessS
ment and compliance

Supply Chain Risk
Management

 ublished the Supplier Code of Conduct GuidelinesPContinued self-assessment surveys (including questions on human rights and anti-bribery and anti-corruption (ABC) measures) by major domestic suppliers andcontractors
Continued risk assessment of major suppliers and contractors (including with regard
to human rights and ABC measures), and improved the methods used for risk
assessment
Participated in the supply chain subcommittee of the Global Compact Network
JapanHeld a Supplier ForumAcquired SA8000 Basic Auditor Training Course Completion Certificate (two people)

Respect forhuman rights

 ublished respective FY2022 statements pursuant to the United Kingdom Modern
P
Slavery Act 2015 and the Australian Modern Slavery Act
Continued to conduct human rights training
Worked with external human rights specialists to identify important human rights
challenges (10 issues in the oil and natural gas exploration business and 11 issues in
the renewable energy business)

 ublish respective FY2023 statements pursuant to the United Kingdom Modern SlavP
ery Act 2015 and the Australian Modern Slavery Act
Continue to conduct human rights trainingImprove the methods used for risk assessment of major suppliers and contractors(including with regard to human rights)

Compliance withlaws and prevention of bribery
and corruption

 nsured awareness of compliance and enhanced education and training programs
E(monthly publication of compliance news, e-learning lessons, officer and manager
compliance training, compliance assessments, etc.)
Bolstered Group-wide compliance cooperation (continued operation of the INPEXGlobal Hotline, held a global compliance meeting, etc.)
Ensured awareness and enhanced operation of ABC regulations (continued training,
due diligence, risk assessments of ABC practices at domestic and overseas offices,etc.) nsure awareness of compliance and enhance education and training programs
E(monthly publication of compliance news, officer and executive compliance training,
compliance assessments, whistleblower response personnel training, etc.)
Bolster Group-wide compliance cooperation (structure development, continuing operation of the INPEX Global Hotline, etc.)
Ensure awareness and enhance operation of ABC regulations (continue training, due
diligence, risk assessments of ABC practices at domestic and overseas offices andsubsidiaries, etc.)

Fully comply with and appropriately
respond to the laws and regulations,
including ABC laws, of the areas inwhich we operate, judicial/ administrative sanctions, international norms andethics, and full respect for humanrightsContinue human rights due diligence

Improvement ofour governancestructure

GovernanceImprovement of
our risk management structure

Compliance

FY2023 achievements

Strengthen the corporate governancestructure, including enhancement of
the supervisory role of the Board of
Directors
Deepen discussions by the Nomination and Compensation Advisory
Committee about achieving further
diversity in the Board of Directors andabout a succession plan for the President & CEO, and provide feedback on
those discussions to the Board
Continue efforts to achieve the Longterm Strategy and Medium-term Business Plan of INPEX Vision @2022 torealize a net zero carbon society by2050

 ontinue to monitor mitigation/manC
agement plans for material risks andissues identified by each division under the Medium-term Business Plan
and their implementation

056

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Sustainability Material Issues: Targets and Achievements

Material issues

Key tasks
Promotion ofclimate change
response goals
and disclosures
based on TCFD
recommendations

Climate Change

Promotion of five
net zerobusinesses

FY2023 achievements
Continued to achieve a CDP Climate Change A- score
Achieved net carbon intensity of 28 kg-CO2e/boe in FY2023
Achieved methane emissions intensity (methane emissions/natural gas production) of
0.05%

FY2024 targets
 ontinue to achieve a CDP Climate Change A- score
C
Reduce net carbon intensity by 10% (4.1 kg-CO2e/boe) or more between FY2022 andFY2024
Check details of emissions reduction measures in individual projects for achieving theFY2030 target for net carbon intensity

Medium- to long-term targets,
initiatives, and directions
 educe net carbon intensity by 30% orRmore by FY2030
Achieve zero routine flaring by FY2030
Maintain methane emissions intensity(methane emissions/natural gas production) at its current low level (about 0.1%)

FY2023 achievements

FY2024 targets

Targets to FY2030

Hydrogen and ammonia
Began construction of aboveground facilities for the integrated demonstration testing of hydrogen and ammonia production and utilization in Kashiwazaki City, Niigata
Prefecture, Japan
Signed a memorandum of understanding for a joint study with the Abu Dhabi National Oil Company (ADNOC), Japan Organization for Metals and Energy Security(JOGMEC), and Mitsui & Co., Ltd. for the verification of GHG emissions at a cleanammonia production project in Abu Dhabi
Began pre-FEED work for a large-scale, low-carbon ammonia production project at
the Port of Houston, Texas, USA
Signed a joint study agreement for a green hydrogen project in South Texas, USA

Hydrogen and ammonia
With the aim of beginning operations in 2025, complete construction of abovegroundfacilities and drill three wells for CO2 injection, production, and observation for thedemonstration project of hydrogen and ammonia production in Kashiwazaki City, Niigata Prefecture, Japan
Pursue opportunities to participate in clean ammonia project in Abu Dhabi
With the aim of beginning commercial production between the late 2020s and around2030, promote the clean hydrogen and ammonia project in Japan and overseas, starting with the large-scale, low-carbon ammonia production project at the Port of Houston, Texas, USA

Hydrogen and ammonia
Commercialize three or more projects
Aim for hydrogen and ammonia production and supply of 100,000 tons/
year or more

CCUS
Conducted Huff & Puff tests for the CO2 EOR demonstration testing in the Minamiaga
Field OfficeConducted reservoir evaluations, acquired new 3D seismic data, and conducted preparatory work for drilling in the G-7-AP GHG assessment block in Australia
The Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS Initiative Project, in which we participate, were adopted under the 2023 Survey on Implementation of Advanced CCS Projects commissioned by JOGMEC

CCUS
Investigate moving to the next phase of the CO2 EOR demonstration testing in the
Minamiaga Field OfficeAcquire new 3D seismic data, drill two evaluation wells, and conduct investigations
into updating reservoir evaluations and evaluating CCS feasibility, in the G-7-AP GHG
assessment block in Australia
Conduct evaluations into CCS adoption at the Ichthys LNG ProjectConsider and launch new projects in Japan and overseas

CCUSAchieve annual CO2 injection volumeof 2.5 million tons or more
Become a leading company in CCUS
by promoting technical development
and commercialization

Renewable energy cquired a 50% stake in Enel Green Power Australia Pty Ltd,A
through which we began a collaboration with Enel Green Power
S.p.A. for a renewable energy business in Australia
Achieved the renewable energy generation capacity target (500MW) in the Medium-term Business Plan Made the final investment decision (FID) for a floating offshore
Wind power
generation
wind power project off Goto City, Nagasaki Prefecture, Japan
Began investigations into domestic offshore wind power project
tenders from next fiscal year
Geothermal power  
Established and enhanced a project promotion structure in
generation
Indonesia
Began construction for the Oyasu Geothermal Power Project in
Akita Prefecture, Japan Develop a domestic offshore wind power project
Ensure stable operations and expand business at Europeanwind power projects
Generate business opportunities in Southeast Asia, Australia,
and the Americas
Geothermal power  Carry out additional development at Muara Laboh Geothermal
generation
Power Project in Indonesia
Progress construction for Oyasu Geothermal Power ProjectProgress geothermal exploration activities in Indonesia, Japan,
and other regions

 ecure 1–2 gigawatt-scale installedS
capacity, mainly in the offshore windand geothermal power generation
businessAccelerate business expansion using
assets acquired through M&A andother means as a platform

Carbon recycling and new businessBegan construction of a methanation test facility (400 Nm3/h) in Nagaoka City, Niigata
Prefecture, Japan
Currently working with Masdar, Tokyo Gas Co., Ltd., and Osaka Gas Co., Ltd. on a joint
feasibility study to produce e-methane in Abu Dhabi
Signed a joint feasibility study agreement with Masdar for a carbon recycle chemicals
production project in Abu Dhabi
Conducted 14 drone demonstration testing flights to inspect our facilities
Invested in TeraWatt Technology Inc. (developing next-generation lithium-ion batteries), Kyoto Fusioneering Ltd. (accelerating development of fusion energy), and OCOchem (developing green formic acid production technologies)

Carbon recycling and new businessConstruct a plant as a methanation technology development project with the aim of
beginning operation during 2026
Complete the business feasibility study for an e-methane project in Abu Dhabi, anddecide whether to move to the pre-FEED stage
Pursue further R&D in artificial photosynthesis
Use drones to inspect our facilities
Promote collaborations with venture companies in which we have invested

Carbon recycling and new businessPromote the adoption of methanation
in societySupply about 60,000 tons of synthetic
methane annually via our pipeline
network

Wind power
generation

057

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Sustainability Material Issues: Targets and Achievements

Material issues

Key tasks

Promotion of five
net zerobusinesses

FY2023 achievements

FY2024 targets

Medium- to long-term targets,
initiatives, and directions

FY2023 achievements

FY2024 targets

Targets to FY2030

Forest conservation
Acquired credits for outstanding forest conservation projects and investigated participating in the projects
Began planting trees for a carbon farming and renewable biofuel project in Australia
in conjunction with Australia and New Zealand Banking Group Limited (ANZ) andQantas Airways Limited

Forest conservation
Participate in and pursue development opportunities for forest conservation
projects
Acquire about 1.5 million tons of forestation credits per year from leading forest conservation projects

Forest conservation
Secure about 2 million tons of forestation credits per year from forest conservation projects by FY2030 throughproject participation, development,
etc.

FY2023 achievements

FY2024 targets

Targets to FY2030

 ustralia
A
Confirmed that the Ichthys LNG Project has increased the capacity of the facility to
produce 9.3 million tons per year. In addition, promoted low-carbon operations byminimizing flaring and fuel gas emissions during production
Indonesia
Received approval from the Indonesian government for a revised plan of development for the Abadi LNG Project to incorporate a CCS component (plan to eliminate
all CO2 emissions associated with natural gas from the gas field)
Norway
Began power provision from the Hywind Tampen floating wind farm to the Snorre oilfield, and converted a portion of the electricity required for production and operationof the oil and natural gas production plant to clean power by using electricity supplied
from the wind farmAbu Dhabi
In addition to using 100% clean power at onshore facilities, worked with ADNOC to adopt
clean power, including using onshore clean power to supply offshore facility power needs ustraliaA
Aim to produce 9.3 million tons per year at the Ichthys LNG Project through safe operations and improved facility utilization rates. Also, continue promoting low-carbon
operations
Indonesia
Promote various surveys, studies related to CCS, preparation of basic design work
(FEED), and other necessary preparations for final investment decision (FID)Abu Dhabi
Aim to further reduce production costs by optimizing personnel allocation and introducing new technologies, and supply offshore facilities with clean power
Norway• Gain knowledge through stable operation and continuous monitoring of the Hywind
Tampen floating wind farm, and consider low-carbon projects based on the information gathered on renewable energy, hydrogen, and CCUS projects• 
Expand the volume of carbon neutral gas soldIncrease natural gas ratio of portfolio
by raising natural gas investment ratio
to about 70%
Make our projects cleaner by achieving zero routine flaring, introducing
CCUS and renewable electricity, conserving energy, utilizing forestationcredits, etc.

Prevention ofmajor incidents

Reduced the number of incidents by: issuing incident bulletins; drawing lessons fromincidents; statistically analyzing and benchmarking incidents; strengthening incident
cause investigation; and planning and implementing a Group-wide “safety month”
campaign from September to October 2023
Steadily implemented the process safety management roadmap (identified necessaryGroup-wide process safety management-related competencies, published change
control requirements, etc.); held process safety workshops with ADNOC; and provided support for the Hirai Blue Hydrogen project and addressed challenges throughthird-party committees
Began implementing HSE management for the five net zero businesses, including thegeothermal businessStrengthen incident prevention efforts by: issuing incident bulletins; drawing lessons
from incidents; strengthening contractor HSE management; implementing a “safetymonth” campaign; and implementing LSRs, PSFs, and other internal campaigns
Formulate and implement management methods for achieving Group-wide process
safety management-related competencies, confirm process safety risks associatedwith the Ichthys LNG Project, and adopt process safety management in design andoperational readiness in the hydrogen and CCUS fields
Continue implementing HSE risk management and HSE management for the five net
zero businesses

Securing ofoccupational
health and safety emonstrated HSE leadership by: coordinating between corporate divisions and opD
erator projects; holding an HSE Forum; and conducting 11 management site visits
Strengthened health management by: standardizing health management activities;
strengthening mental health management; and standardizing infectious disease
management

Demonstrate HSE leadership by: reinforcing coordination between corporate divisions
and operator projects; holding an HSE Forum; and conducting management site visits
Strengthen health management by: standardizing health management activities;strengthening mental health management; and standardizing infectious disease
management

Biodiversity conservation
Conducted nature readiness self-assessments and identified challenges with our nature-related initiatives
Conducted trial evaluations at our domestic projects based on TNFD’s LEAP approachUpdated the database of protected areas for our project areas

Biodiversity conservation
Conduct evaluations based on TNFD’s LEAP approach for all operator projects
Identify impacts and dependencies, and risks and opportunities, related to biodiversity
Establish quantitative targets for biodiversity
Implement biodiversity conservation initiatives in our project areas

Water risk management
Updated water stress assessments in our project areas
Assessed the current state of water balance and aggregated/analyzed data on thevolume of freshwater/seawater intake and use in our projects
Considered quantitative targets for water management

Water risk management
Conduct evaluations based on TNFD’s LEAP approach for all operator projects
Identify impacts and dependencies, and risks and opportunities, related to water
management
Establish quantitative targets for water management

Ensure compliance with LSRs for safetyin high-risk operations, strengthen
process safety management, andcompletely eliminate major incidents
Carry out the following actions that
further improve HSE management:
1. Strengthen incident prevention
efforts
2. Further improve process safety
management through systemic
programs
3. Help to address global environmental challenges and create environmental value
4. Prepare for emerging threats
5. Reinforce health management andmeasures for infectious diseases
6. Demonstrate HSE leadership andimprove effectiveness of the HSEMS
7. Enhance HSE competency andsecure personnel
8. Implement HSE management for
the five net zero businesses

Climate Change

Cleaner oil andgas business andtransition tonatural gas

HSE

Biodiversity
conservation andwater risk
management058

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

Sustainability Material Issues: Targets and Achievements

Material issues

Key tasks

Local
Communities

Implementationof assessmentsof impact on
local andindigenous
communities andmeasures toreduce impact

Contribution to
local economies

Human Capital
Making INPEX
the best place towork

FY2023 achievements

FY2024 targetsJapanMaintained positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of
newslettersJapan
Maintain positive relationships with stakeholders through continuous dialogue, including appropriate response to inquiries from local communities and publication of
newsletters

Australia
Maintained positive relationships with government agencies, industry groups, andlocal stakeholders through more than 300 dialogues

Australia
Maintain positive relationships with stakeholders through proactive dialogue

GlobalInvested approximately 4.4 billion yen in social contribution initiatives

GlobalContinue investment in social contribution initiatives in response to the needs of local
communities

Australia
Developed and started to execute Reconciliation Action Plan (RAP) 2023–2025
Directly employed 52 Aboriginal and/or Torres Strait Islander people and indirectly
employed about 130 people on average through contractors, as of the end of FY2023
Procured more than A$ 8.2 million of goods/services from 16 Aboriginal and/or Torres
Strait Islander businesses, as of the end of FY2023

Australia
Achieve targets set in Reconciliation Action Plan (RAP) 2023–2025
Continue to implement our social contribution strategy

GlobalHeld a symposium with past recipients of the Value Awards as part of efforts to promote INPEX Values
Provided opportunities for overseas office employees to be assigned to our headquarters (seven employees from Australia)

GlobalContinue promoting INPEX Values (Value Awards Symposium)
Provide opportunities for overseas office employees to be assigned to our headquarters (expand the number of applicable overseas offices)JapanAdopted a job- and role-focused personnel system for regular employees and employees working under reemployment contracts
Secured human resources by increasing recruitment of new employees
Overhauled the employee benefit program (introduced Cafeteria Plan)Japan
Continue promoting specific measures tied to the human resources strategy
Promote measures to advance female employees as part of efforts to promote diversity, equity, and inclusion (DE&I)
Adopt a talent management system (personnel evaluation, succession planning, etc.)

Medium- to long-term targets,
initiatives, and directions
Contribute to local development andthe addressing of social issues throughour business activities, while respecting human rights and the cultures andcustoms of the areas in which we
operateUnderstand and respond to community needs through dialogue withstakeholders in the areas in which we
operateImplement programs and establish a
corporate culture that cultivates employee satisfaction and engagement
Expand support for employee careerdevelopment
Create a workplace environment that
supports needs for diverse workstyles
and employee well-being

059

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

060

Climate Change
In line with the long-term goals of the Paris Agreement, INPEX is committed to addressing climate change and established a target in January 2021 to achieve net zero emissions by
2050 (Scope 1 and 2). In February 2022, we announced INPEX Vision @2022 as part of efforts to reform our energy structure towards the realization of a net zero carbon society by
2050, while still meeting the energy demands of Japan and the world.
Climate change forms one of our Material Issues. As such, we are working to address climate change by reducing our net carbon intensity and driving our five net zero businesses
which include hydrogen and renewable energy.

Message from the Officer in Charge of
Climate Change Response

Toshiaki Takimoto
Director, Senior Managing Executive
Officer, and Senior Vice
President in charge of the Corporate
Strategy & Planning DivisionThis is the final year of our Long-term Strategy and Medium-term
Business Plan of INPEX Vision @2022, which lays out our pathto achieving the target of net zero emissions by 2050 as announced in 2022. This plan states that net carbon intensity
shold be reduced by 10% (4.1 kg-CO2-e/boe) or more overthree years from 2022, and we have made good progress in
2023. We will continue to work towards achieving our targets.
In 2023, we also joined OGMP 2.0*, which is an international
reporting framework for reducing methane emissions. This
framework enables us to share technological innovation andinformation on specific initiatives among members of the partnership, while working to reduce greenhouse gas (GHG) emissions across the industry as a whole. We plan to release a new
vision and Medium-term Business Plan at the start of 2025, including a roadmap to achieving our target of net zero emissions by 2050. As part of that, I would like to share our
medium- to long-term climate change response policy, which
will include strengthening of our efforts to achieve low-carbon
energy, solutions to be provided, and how we address the energy trilemma.
* The Oil & Gas Methane Partnership 2.0

INPEX Climate Change Response Milestones
2020

2021

2022

2023

2024

Made the Climate
Change Strategy Working
Group an advisory bodyto the Sustainability
Committee

Announced our Business
Development Strategy
and set climate change
response goals

Announced our Longterm
Strategy and Medium-term Business Plan
(INPEX Vision @2022)

Implemented the financial
impact assessment basedon the NZE scenario

Updated our Current
Initiatives based on
INPEX Vision @2022

Established our Guidelines for Assessment andManagement of Climate-related Risks andOpportunities

Revised our Corporate
Position on Climate
ChangeRevised our Corporate
Position on Climate
ChangeUpdated our Current
Initiatives based on
INPEX Vision @2022

Joined the Oil and Gas
Decarbonization Charter

Obtained a CDP Climate
Change A- score

Established our Guidelines for Transactions andManagement of VCUs1

Participated in the CCS+
initiative3

Joined the Oil & Gas
Methane Partnership 2.0

Disclosed greenhousegas emissions on an
equity share basis

Established our Guidelines for Climate Change
Response Goals

Created a forestationcredit screening form
(improved the process)Obtained a CDP Climate
Change A- score

Obtained a CDP Climate
Change A- score

Obtained a CDP Climate
Change A- score

Join the GX League

Participated in the
ICVCM2 consultationgroup
1. VCUs: Verified Carbon Units
2. IC-VCM: Integrity Council for Voluntary Carbon Markets, an organization promoting the development of global standards for the quality of voluntary carbon credits
3. CCS+ initiative: An international initiative to develop a methodology for creating credits from projects related to CCUSINPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

061

Climate Change

Ongoing Initiatives to Address TCFD Recommendations

Goals for Addressing Climate Change

At INPEX, we recognize that addressing climate change is an important management issue.Our Board of Directors maintains a supervisory role and is expanding its involvementin this area.In addition, we have established a Sustainability Committee which is chaired by
the President & CEO. The Committee’s advisory body, the Climate Change Strategy Working Group, assesses climate-related risks and opportunities. Matters assessed and discussed by the working group are reported to and deliberated by the Sustainability
Committee, after which they are approved by the President & CEO, and then reported to
the Executive Committee and the Board of Directors. Our governance structure for climate change response has been highly evaluated both in Japan and overseas, and waslisted in the TCFD’s 2022 Status Report as a case study.
And in FY2022, we revised our compensation system for all of our internal Directors, including Representative Directors. We adopted net carbon intensity—the indicator used in
our Long-term Strategy and Medium-term Business Plan (INPEX Vision @2022)—as a key
performance indicator for stock-based compensation. For the officer in charge of climatechange response, qualitative targets are set each year to promote climate change response, including goals for addressing climate change, risk management, and information
disclosure. The degree to which these targets have been achieved is evaluated and reflected in their compensation.

We have set three goals to help realize a net zero carbon society in accordance with theobjectives of the Paris Agreement.
The first goal is to achieve net zero emissions by 2050 pursuant to the Paris Agreement.
The second is to achieve a reduction of at least 30% in net carbon intensity (compared to2019) by 2030 in the process of fulfilling the first goal. The third is to cooperate with all
relevant stakeholders across the value chain to reduce the Scope 3 emissions fromcombustion of the oil and gas we sell.
In our 2022–2024 Medium-term Business Plan, we added one further goal to reduce ournet carbon intensity by 10% (4.1 kg-CO2-e/boe) over that three-year time frame, in pursuitof our 2030 target.

INPEX’s Emissions

Direct GHG Emissions(Scope 1)1

Board of Directors1

Executive Committee2
Representative Director,
President & CEO

Sustainability
Committee3

Corporate
HSE
Committee5

Director, Senior Managing
Executive Officer in charge ofCorporate Strategy & Planning
Climate Change
Strategy Group

Climate Change
Strategy
Working Group4

Divisions andsubsidiaries

FY2022,
Jan–Dec

FY2023,
Jan–Dec

7,302

6,839

6,864

136

69

55

77,80584,31086,19933

28

28(thousand tons CO2e)

Indirect GHG Emissions(Scope 2)1

Governance Structure for Climate Change Response

FY2021,
Jan–Dec(thousand tons CO2e)
1. Board of Directors: Decisions on Corporate Position on Climate Change,and supervision of climate change
responses
Executive Committee: Decisions on
2. 
assessments of climate-related risks
and opportunities, and decisions onimportant goals relating to climatechange responses
3. 
Sustainability Committee: Deliberation of basic policies on sustainability
and promotion of Group-wide, systematic sustainability activities
4. 
Climate Change Strategy Working
Group: An advisory body to the Sustainability Committee, comprising about 30
cross-organizational members and responsible for assessing climate-relatedrisks and opportunities
5. Corporate HSE Committee: Aggregation, analysis, and reporting of GHG
emissions according to the Health,
Safety and Environmental Policy (HSE
Policy)Scope3 Category 111(thousand tons CO2e)

Net carbon intensity2(kg CO2e/boe)Target
2050
NET ZERO*1
in absolute emissions(Scope 1+2)
*1 On INPEX equity share basis

Work together with all relevant
stakeholders to address challenges across the value chain2030
30% OR MORE*2
reduction in net carbon intensity(Scope 1+2)
*2 In comparison with 2019

Methane emissions
intensity3

0.04
(%)

0.05

0.05

Maintain methane emissions intensity (methane emissions/natural gas production) at its current
low level (approx. 0.1%)*3

1. INPEX’s equity share emissions
2. Net carbon intensity including offsets
3. Methane emissions intensity on operational control basis: Calculated as methane emissions/gas production (%), the formulaused by the Oil and Gas Climate InitiativeINPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

062

Climate Change

Financial Assessment of Transition Risks
We use two methods to assess the potential financial impact of climate-related risks using
scenarios in the International Energy Agency (IEA) World Energy Outlook (WEO) report.
Two Approaches to Financial Assessment
Assessment using internalcarbon price

Assessment under various
scenarios

Financial impact assessment method

Financial impact assessment ofcarbon pricing policies on projects

Financial impact assessment basedon oil and carbon prices under thefollowing scenarios:
Stated Policies Scenario (STEPS)
Announced Pledges Scenario(APS)
Net Zero Emissions by 2050
Scenario (NZE)

MetricIRR based on internal carbon price(base case)

The percentage of change from
NPV based on application of therelevant index price (sensitivity
analysis)

StatusAdopted as base case since
FY2021

Implemented since FY2018; NZE
scenario added from FY2022

The second method is to assess the financial impact on our business portfolio. This is anevaluation of the impact on our portfolio from the oil and carbon prices in the STEPS, Announced Pledges Scenario (APS), and Net Zero Emissions Scenario (NZE). We apply the oiland carbon prices under these three scenarios to the net present value (NPV) calculation
for projects, and calculate the percentage of change from the NPV for the base case toassess the impact on our portfolio. We will continue to refine the implementation standards for this method to improve the competitiveness of our business portfolio as we
factor in changes in the business environment.

INPEX’s Low-carbon Society Scenarios
In considering the outlook for the business environment, including energy demand andsupply toward a low-carbon society by 2050*, we refer to the STEPS, APS, and NZE of the
IEA WEO as well as the Reference Scenario and Advanced Technologies Scenario of The
Institute of Energy Economics, Japan (IEEJ).
Our Long-term Strategy and Medium-term Business Plan (INPEX Vision @2022) was
developed based on these scenarios. We will continue to conduct scenario reviews topromptly identify changes in the business environment, and review management strategies
and plans in line with social trends.
*The IEA WEO sets out a panoramic view of the international energy situation through 2050.

Please click here to see more information about Assessment and Management of Climaterelated Risks and Opportunities

The first method is an economic assessment of our projects using our internal carbon
price. We employ this method because more than 150 countries and regions have alreadydeclared net zero targets by 2050, anticipating a growing number of countries to introduce
carbon pricing as they bolster policies to tackle climate change. Each year, we update ourinternal carbon price with reference to the carbon prices in the Stated Policies Scenario(IEA-STEPS) in the WEO. Starting in FY2023, we reflect the IEA WEO carbon price forecast
and, if there is a carbon price system in the country in which we operate, reference ourquoted price based on factors such as estimates provided by external experts. If there isno carbon price system in the country in which we operate, we reference variable prices
linked to the IEA-STEPS EU prices (2030: US$120/tCO2e; 2040: US$129/tCO2e; 2050:
US$135/ tCO2e).

Referenced Scenarios
Stated Policies Scenario (STEPS)International Energy Agency (IEA)
World Energy Outlook (WEO)

Announced Pledges Scenario (APS)Net Zero Emissions by 2050 Scenario (NZE)

Institute of Energy Economics, Japan(IEEJ)

Reference Scenario
Advanced Technologies Scenario

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

063

Climate Change

Efforts to Reduce Fugitive Methane Emissions

Efforts to Reduce Flaring

Our target is to maintain our methane emissions intensity
at its existing low level (about 0.1%). In FY2023, our methane emissions intensity was 0.05%, which is below our target level.
In FY2023, we joined the Oil & Gas Methane Partnership 2.0 (OGMP 2.0), a reporting
framework for methane reductions by oil and gas companies. OGMP 2.0 was established
as an international reporting framework under the United Nations Environment Programme (UNEP), providing member companies with a framework for comprehensive,measurement-based reporting to promote methane reductions. By reporting methane
emission reductions through the OGMP 2.0 framework, we are improving the accuracy andtransparency of our methane emissions reporting. We are also actively sharing technological innovation and information on specific initiatives with other member companies withthe aim of measuring and reducing methane emissions.
To manage and reduce methane emissions, we have been aggregating and reporting
data on fugitive methane emissions based on international methods since FY2018.
In FY2019, we surveyed and identified fugitive emission inspection locations for equipment and facilities at our projects in Japan. We also established a structure for data aggregation and reporting. In FY2020, we brought in a laser methane detector to enable
inspections at almost all applicable points. We also introduced vehicle-mounted methane
detectors and drones with which we are able to inspect all 1,500 kilometers of our domestic gas pipelines. Fugitive emissions detected through this inspection process are rectified
immediately.
For our overseas projects, we carried out fugitive emission inspections through a leakdetection and repair (LDAR) program using infrared cameras. At the Ichthys LNG Project,
we inspected the central processing facility (CPF) and floating production, storage, andoffloading (FPSO) facility in FY2022, and the onshore gas liquefaction plant in FY2023. We
are now investigating how to achieve the level of methane emission management requiredby OGMP 2.0 by using drones and other methods going forward.
We are exploring the possibility of implementing similar inspections at additional projects, and will continue to take further action to reduce fugitive methane emissions acrossthe entire Group.

Having set a goal of zero routine flaring in our operator projects by 2030, relevant departments across the Company have been working together to study measures to reduce
flaring.
In Japan, as part of our research and development of flaring reduction measures, we are
studying the introduction of initiatives to reduce atmospheric CO2 emissions by fixing carbon in flare gases through the use of methane pyrolysis technology (see the diagram
below).
Pyrolysis gas
For fuel

Flare gas

Pyrolysis

Production Facility
Solidification

Solid Carbon

Since FY2022, we have also been managing our flaring along two lines—routine andnon-routine flaring—in line with the Flaring Management Guidance for the Oil and Gas
Industry developed by Ipieca, IOGP, and the Global Gas Flaring Reduction Partnership(GGFR).
As small quantities of non-condensable gas from oil production fields encounter challenges in feasible utilization, such gas is often incinerated in the flare system with CO2emissions. The application of methane pyrolysis technology enables the extraction of solidcarbon from flare gases and consequently, reduce CO2 emissions by flaring.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

064

Health & Safety
Through a resolution by the Board of Directors, INPEX has defined a Group-wide Health, Safety and Environmental Policy (HSE Policy) that aims to ensure the health and safety of its
employees, contractors, project partners, local community members, and all other stakeholders while addressing global environmental issues and generating environmental value. The
policy is applied to all employees and contractors who engage in Group activities, including our operational sites.
The HSE Policy is implemented through the combined efforts of the corporate HSE Unit—comprising the Planning, Health & Safety, Process Safety, and Environment groups—andby way of our robust HSE Management System.
Ele mMessage from the Officer in Charge of HSE

Hideki KurimuraManaging Executive Officer, SeniorVice President, Technical Headquarters
and in charge of HSE

To realize the sustainable energy development, we advocate aspart of our Mission, we are required to conform to high ethicalstandards as a member of society and foster a corporate culturethat prioritizes safety and environmental conservation. To maintain a stable energy supply, we must conduct our business internationally in search of natural resources. To this end, we havedeveloped our HSE Management System (HSEMS) and conduct our activities in accordance with global standards.
To achieve a rate of zero major incidents*, we will ensurecompliance with the fundamental Life-Saving Rules andstrengthen our process safety management. Through thesemeasures and other efforts outlined in the Plan, these and otherefforts, we will ensure implementation of the eight initiatives tofurther improve our HSE management. Going forward, throughour relentless pursuit of HSE excellence, we will contribute tosociety by improving our resilience in the oil and gas businessand fulfilling our responsibility to ensure a stable supply of clean
energy.
*Major accidents: Fatalities, major leaks, or serious injuries occurring in an operator
project

HSE Management System (HSEMS)
To ensure the successful implementation of the HSE Policy in its businessactivities, in FY2007 INPEX developed the HSEMS Manual, referencing
standards such as ISO 9001 and ISO 14001. This manual was revised in
FY2017 based on the international standard OMS510*1, issued by the International Association of Oil & Gas Producers (IOGP). OMS510 is a system
whose fundamental principles are leadership, risk management, continuous
improvement, and implementation. This system forms the foundation bywhich we improve the performance and effectiveness of our HSEMS. Basedon these fundamentals, the HSEMS Manual defines the structural elements
vital to the implementation of our HSEMS. These include: the preparation
and revision of key HSE documents such as corporate manuals, procedures,and guidelines; the establishment of HSE organizations; HSE technical support for each division; HSE education and training; HSE communication activities; and periodic HSE audits and reviews.

HSE Management Structure
The Board of Directors and the Executive Committee oversee HSE. Our Corporate HSE Committee comprises the Senior Vice Presidents of our operational organizations that implement and manage operator projects, and head
office divisions that manage non-operator projects and subsidiaries, and theGeneral Managers of corporate divisions. The Committee meets regularly topropose and implement the Group’s initiatives for tackling HSE challenges,
analyze risks and opportunities, and monitor the operating status and effectiveness of the HSEMS. Important Group-wide matters resolved by the Committee are then discussed by the Executive Committee and the Board of
Directors.

1

ent

s

Assurance,
review and Commitment
improvement
andaccountability

10
9

Monitoring,
reportingand learning

Execution ofactivities

8

2

Policies,
standards
and objectives

Implementation

Leadership

The
Fundamentals

Continuous
Improvement

3
Organization,
resources andcapabilities

Risk Management
Stakeholders
andcustomers

Plans andprocedures

7

4

Asset design Risk assessment
and integrity
andcontrol

56*1 OMS510: IOGP Report No. 510: “Operating Management
System Framework for controlling risk and delivering highperformance in the oil and gas industry”

HSE Management Structure
Board of Directors

Auditing

ReportingAppointment

Executive Committee
Reporting

Audit & Supervisory
Board Members(Audit & Supervisory Board)

Auditing

Auditing

Corporate HSE Committee
Instruction

Reporting
Quarterly Environmental
Management Working
Group meetings

Environmental Group,
Corporate HSE Unit
Discuss/
Collaboration

Person(s) in chargeof environmentof Operationalorganization

Person(s) in chargeof environmentof Operationalorganization

Person(s) in chargeof environmentof Operationalorganization

Person(s) in chargeof environmentof Operationalorganization

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

065

Health & Safety

Promotion of Health and Productivity Management
INPEX Group Health Statement
INPEX believes the mental and physical health of all employees is the foundation of theCompany, therefore regard health management as a material management issue. The INPEX Group Health Statement issued in September 2018 sets out our position to supportand improve the health of employees and their families, with the President & CEO appointed as Chief Health Officer.
The statement declares that: the Company will maintain and improve the physical andmental health of employees as well as their families; the Company aims to build a vibrantcorporate culture by creating a work environment to maximize the potential of all employees; and employees should recognize their own responsibility in improving their lifestyles
and proactively strive to maintain physical and mental health.

Health Management Promotion System
Chief Health Officer
Collaboration

Health Management Committee
Secretariat
Each office
Health management
department

Medical officer

Collaboration

Collaboration

Industrial healthstaff

 eadquarters medicalH
officerLabor union
Health insurance union ealth Management
H
Department at head officeIndustrial health staff athead office
Affiliated medical institutions
Each office
Health and safety committee/
HSE committee

Employees and their families

Health Management Committee
Health Management Committee

Approach to Health and Productivity Management
Under the leadership of the President & CEO as Chief Health Officer, we are working with
our labor union, health insurance union,and medical officers to maintain and improve thehealth of our employees and their families and to create a healthy workplace.
For this purpose, we have set up Health Management Committee (Committee inauguration date: September 26, 2018). The Committee meets regularly, at least once a year to
identify employee health issues and consider relevant solutions, while implementing ongoing improvements through the PDCA cycle. To improve the expertise of the Committee,
our head office medical officers are also members.

Members(Vice-chair)(Chair)(Vice-chair)Director in Chargeof HSE

Head of General
Administration
Division

Head of Corporate
Strategy &Planning Division

Head of Domestic
Energy Supply &Marketing Division

Head of Domestic
Exploration and
Production
Division

General Manager,
HSE Unit

General Manager,
Human Resources
Unit

General Manager,
Corporate
Strategy &Planning Unit

General Manager,
Administration
Unit, Domestic
Energy Supply &Marketing Division

General Manager,
Planning &Coordination
Administration
Unit

Labor union

Health insurance
union

Headquarters
medical officer

HR UnitPublic health nurse

Secretariat

Agenda items:
1. Issues relating to employee health and required countermeasures
2. Groundwork for health and productivity management, steps to improve the workplace environment
3. Specific measures to address employee mental and physical health
4. Review of effectiveness of measures to maintain and improve health
5. Other important matters relating to maintaining and improving healthINPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

066

Environment
We recognize the importance of addressing the increasingly diverse global environmental issues emerging in recent years connected to our business activities, including climate change,
biodiversity, and water management and waste. We have therefore incorporated initiatives to address such issues and to create environmental value as part of our HSE management
enhancements.
With this in mind, in FY2022, we revised our HSE Policy and published the policies and commitments on biodiversity conservation, water management, and waste management.
In this way, in addition to our traditional management initiatives to avoid, mitigate, or compensate for negative impacts on the environment surrounding our projects, we can contributeto the new creation of environmental value by working to promote a net positive approach to biodiversity and help create a circular economy through appropriate management of waste.

Policy and Commitments on Biodiversity Conservation

Promotion of Biodiversity Conservation Activities

Recognizing biodiversity conservation as another significant global environmental issue,
we have positioned this as one of our Key Tasks. We established and published our Policy
and Commitments on Biodiversity Conservation in December 2022, following resolution
by the Board of Directors.

The type and degree of impact that our operations have on biodiversity differ dependingon the scale, activities, or location of each project. Accordingly, the biodiversity conservation efforts required for each project also differ. Therefore, we assess the importance of
biodiversity in the areas in which we operate, and the risks and impacts on biodiversity thateach project brings. We then apply a mitigation hierarchy to plan strategies for avoiding,mitigating, and compensating for those risks and impacts, and to conserve biodiversity, inenvironmentally sensitive areas that are particularly important (protected areas, critical
habitats of threatened species, forests, mangroves, coral reefs, wetlands, and tidal flats,etc.).

Our Policy

We identify biodiversity related risks and opportunities in our businesses and actively promote initiatives for the conservation and sustainable use of biodiversity
based on the mitigation hierarchy1.

Commitments

1. Identify Biodiversity Related Risks and Opportunities
We will identify risks and opportunities for biodiversity in our business andpromote initiatives for sustainable use.
We will promote disclosure of information on biodiversity conservation
activities.
2. Set Exclusion Zones for Our BusinessesWe will not operate our businesses inside UNESCO World Natural Heritagesite boundaries.
3. Promote a Net Positive Approach
For our businesses located in critical habitats2, we will develop and implement
Biodiversity Action Plans (BAP), including creating net positive impacts.
4. Enhance Biodiversity Conservation Activities
For new businesses, we will identify impacts on biodiversity and develop andimplement measures to avoid or reduce impacts based on the mitigation
hierarchy.
For existing businesses, we will reduce negative impacts on biodiversity to
the extent possible and promote initiatives to create positive impacts on
biodiversity.

Biodiversity Conservation Activities in Japan(Efforts at “Kitsunedaira Donguri-no-mori”)
As part of an ongoing forestation support program launched by
Niigata Prefecture in FY2010, the Kitsunedaira Donguri-no-mori(Acorn Forest) project is being conducted in Nagaoka City’s Fudosawa district, adjacent to the Nagaoka Field Office. In addition tothis forestation efforts, since FY2019, we have been conducting
biodiversity surveys in Kitsunedaira Donguri-no-mori to investigate
the species that are using and inhabiting the forest. As a result of
the surveys conducted in FY2019 and FY2022, a wide variety of species have been observed, including antelopes and foxes.

1. Mitigation hierarchy: The idea that after avoiding, minimizing, or taking steps to remedy negative impacts on the environment,
the final measure should be an offset to compensate for any remaining impacts
2. Areas of high biodiversity value as defined in IFC Performance Standard 6.

At INPEX, we are enhancing our biodiversity and nature-related initiatives in line with global trends. We have participated in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum since
FY2022, and gathered information related to the TNFD framework* as well as conducting internal assessment on a trial basis. For more details, please refer to the Sustainability Report 2023.
*TNFD framework: A framework established by the Taskforce on Nature-related Financial Disclosures (TNFD) to assess nature-related risks and opportunities, and to disclose that information.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

067

Environment

Policy and Commitments on Water Management

Water Risk Assessment and Identification of High-water Stress Areas

With water management and water risk management1 being internationally recognizedissues, we have prioritized proper water management as one of our Key Tasks.
Additionally, we have established and published our Policy and Commitments on Water
Management through a resolution of the Board of Directors in December 2022.

We annually check the water risk in the areas where our operator projects are located using AQUEDUCT, a water risk mapping tool developed by the World Resources Institute(WRI). As of the end of 2023, among the 26 production assets and one development project in which we have an interest, both the Abu Dhabi project and the Abadi project underdevelopment are located in areas with high water stress. However, in Abu Dhabi, no freshwater is being withdrawn due to the installation of seawater desalination equipment. For
the Abadi project, we plan to install a seawater desalination plant as well, so that no freshwater will be taken from the project area.
Since local water risks are influenced by various factors and change over time, going
forward we will continue to identify water risks. If we find water risk to be too high, we willplan and implement additional measures according to the mitigation hierarchy.

Our Policy

We consider the impact of our business on water resources and sustainability inlocal communities and promote efforts on impact mitigation and value creation.

Commitments

1. Assess water-related risks in areas around operational sites
We strive to understand the water-related risks at operating sites using internationally recognized risk assessment tools.
We will develop and implement additional measures based on mitigation hierarchy for areas evaluated as high water-related risk areas.
2. Restrict freshwater intake in high water stress2 areas
We will limit freshwater intake where significant impact is expected on local
water resources as a result of freshwater intake by our operating sites.
3. Implement appropriate water management (water intake, usage, and drainage)We will strive to understand the status of water usage (water intake, drainage,
usage) at our operating sites and implement the 3Rs (reuse, reduce, recycle).
We will implement appropriate treatment and wastewater management for
produced water and other associated wastewater.
4. Collaborate with stakeholders
We will collaborate with stakeholders to promote sustainable use of local water resources.

1. Water risks: Water risks related to water supply necessary for current and future business continuity and the increasing rate ofoccurrence from abnormal weather associated with climate change
2. Ratio of water demand to available and renewable surfacewater/groundwater

Wastewater Management
Water produced from our oil and natural gas projects is reinjected underground, or discharged as wastewater, after being confirmed to comply with the effluent standards in local and international guidelines. In FY2023, 28% of the total produced water (approximately
0.81 million cubic meters) was reinjected, while the remainder was discharged into rivers orseas after treatment.

Use of freshwater
As one of the resources we utilize in our business operations, we recognize freshwater intake to be a major issue in our water management. We have been working to reduce our
impact on water resources by managing the water intake of our operator projects in Japanand overseas, and the discharge of produced water arising from oil and natural gas production. Our operator project sites use freshwater (tap water, industrial water, and groundwater) as coolants, for power generation and excavation work. In FY2023, the volume of
freshwater used across the Group totaled 1,625 thousand cubic meters. In addition to using groundwater for normal cooling and drilling operations in Japan, we also use it for
melting snow in winter. We are also taking action to reduce our freshwater consumption,
including by adopting a circulating system for cooling water, and equipping snow-melting
systems with automatic start and shutoff mechanisms. Within the Ichthys LNG Project, we
conduct investigations into freshwater use with the aim of reducing consumption in its facilities. The findings of these investigations are being used to consider the feasibility of
cost-effective approaches for reducing freshwater consumption by reusing water, such astreated wastewater from processing as well as wastewater and condensed steam frompower generation facilities.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

068

Local Communities
The support INPEX receives from local communities—underpinned by strong and trusted relationships—forms the basis of our social license to operate, and is therefore integral to thesuccess of our business activities.
Our engagement with local communities is guided by commitments within our Sustainability Principles. We are committed to engaging with, and fairly and proactively disclosing
Company information to, a wide range of stakeholders, including the communities in which we operate. We seek to build and maintain relationships with our stakeholders through open
and transparent engagement.

Site tour for members of the local community

Engagement with Indigenous Communities

When constructing gas pipelines in Japan, we ensure free prior and informed consent(FPIC) is received from local governments, and residents and companies along the route.
To do this, we offer preconstruction briefings, circulate notices about the work and provide
worksite tours.
As a standard practice, we typically select pipeline routes that pass under public land,such as public roads, thereby minimizing the need for residents to relocate. As an exception, when conducting shield tunneling and jacking work, we negotiate with landowners
along the route to lease the minimum area of land required for construction period. Wethen pay a fee to lease the land for the duration of work. When leasing agricultural land,such as rice paddies and vegetable gardens, we financially compensate farmers for theduration of our work and according to the crops being grown. Based on the construction
plan, we invite landowners to briefings and site visits before work commences. After theconstruction is completed, we promptly restore and return land to farmers.

In Australia, our commitment to working with Aboriginal and Torres Strait Islander peoples
to build sustainable and mutually beneficial relationships is underpinned by our Reconciliation Action Plan (RAP).
A RAP sets out practical actions and deliverables to help advancing reconciliation in thecommunities in which we operate. In 2023, we launched our third INPEX Stretch Reconciliation Action Plan (RAP) 2023–2025 which includes various actions and deliverables that are
further stretching our targets, building on achievements under our previous RAPs. The
implementation of actions and deliverables contained in the RAP are facilitated by a RAP
Working Group with oversight from a RAP Steering Committee. Progress of the RAP implementation is shared regularly internal and externally.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

069

Respect for Human Rights
INPEX supports international norms such as the International Bill of Human Rights, the International Labour Standards of the International Labour Organization, the United Nations
Guiding Principles on Business and Human Rights, and the human rights principles of the United Nations Global Compact. In FY2017, we issued the INPEX Group Human Rights Policy
to clearly define our commitment to respecting human rights and fulfill our responsibilities in this regard. In accordance with that policy, we implement measures to address the humanrights of all stakeholders in each country and region where we operate, including stakeholders in our supply chains. The policy prohibits all forced labor and child labor and affirms ourrespect for the protection of freedom of association and right to collective bargaining.
To comply with the United Kingdom Modern Slavery Act act, Australian Modern Slavery Act and Norwegian Transparency Act, we have annually issued a statement on our website
to disclose the policies, structure, and measures that we have in place to prevent slave labor and human trafficking within the Company and throughout our supply chain.
In FY2023, to enhance our supply chain management we formulated Supplier Code of Conduct Guidelines. Additionally, we reviewed our human rights due diligence assessment
sheets with the aim of reassessing the risks we face in our business.
In FY2023, we plan to conduct surveys and interviews regarding human rights issues that are particularly relevant based on benchmark studies and trends across the oil, gas andrenewable energy industries.

Human Rights Due Diligence

Compliance with the UK Modern Slavery Act

Since FY2016, we have been conducting human rights due diligence with the assistance of outsidehuman rights experts at our sites in Japan and overseas to enhance our human rights management. Conducted in line with the INPEX Group Human Rights Policy, we have applied this due
diligence to all seven of our operational sites in three countries as of the end of FY2023.
In FY2024, we added renewable energy business risks to our oil and gas industry risks and reassess human rights risks through our value chain with the cooperation of third-party organization.
These reassessments will extend to all of the stakeholders in our value chain—our employees,
indigenous peoples, migrant workers, suppliers and contractors, and local communities.

The INPEX Group implements measures to address the human rights of all stakeholders in eachcountry and region where it operates, including stakeholders in its supply chains.
As part of these efforts, we issued a Modern Slavery Act Statement based on the Modern Slavery Act 2015*, which was enacted in October 2015.
As a global company involved in the oil and gas development and renewable energy-related
business with sites around the world, including the United Kingdom, this statement indicates ourpolicies, structures, and specific initiatives related to the prevention of slavery and human trafficking in the management of the Group’s supply chain.
In addition, since FY2020, INPEX Australia has annually prepared and issued the INPEX Australia Modern Slavery Statement pursuant to the Australian Modern Slavery Act 2018. Furthermore,
to comply with the Norwegian Transparency Act, INPEX Idemitsu Norge performs due diligence
regarding human rights and working conditions and has disclosed Transparency Act Due Diligence Report since FY2022.
The Group will continue to strive to enhance its human rights management. Through this, wewill steadily live up to our social responsibility to the local communities in which we operate andwe will contribute to the creation of a sustainable society.
*Modern Slavery Act 2015: Under this act, companies that do business in the United Kingdom and meet specific conditions are
required to disclose details regarding the initiatives they implement in their own supply chain to prevent modern slavery on theirwebsite.

FY2023 Statement Pursuant to the United Kingdom Modern Slavery Act
FY2023 Statement Pursuant to the Australian Modern Slavery Act
INPEX Idemitsu Norge Transparency Act Due Diligence Report 2023

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

070

Human Capital
Embodying the management philosophy of the INPEX Group, it is essential for INPEX to build an organizational structure and cultivate a workplace capable of amplifying its strengths
in fieldwork, technology, and internationalism, and respond flexibly even in a rapidly changing business environment. Our objective is to build an organizational culture in which people
feel empowered to voice their ideas without constraint fostering an environment for growth and innovation. We seek individuals who create business value through embracing diversity,
a commitment to personal growth, and demonstrate autonomy. To achieve this, we are working on various key measures based on our Basic Policy on INPEX Human Resources
Strategy.

Message from the Officer in Charge of
Human Capital

Hitoshi Okawa
Director, Senior Managing Executive
Officer, Senior Vice President, General
Administration and Senior Vice
President, Oceania Projects

INPEX implements various human resource (HR) initiatives tomake INPEX the “Employer of Choice,” the best place towork. In December 2023, we redefined the organizational culture we strive for and the human resources we seek, established the Basic Policy of Our Human Resources Strategy toachieve those ideals, and are working on various focused measures. We are pursuing new initiatives such as establishing atask force for women’s advancement, in addition to implementing a range of measures that are more challenging thanever before, such as organizational vitalization, advancementof diverse personnel and support of autonomous career development. Furthermore, we continue to implement initiatives tocreate a workplace environment that allows flexible workstyles,
promotes psychological safety and encourages the uninhibited exchange of opinions and ideas.
To realize further growth for INPEX and to have employees
break away from conventional thinking and behavior and excel
at each place of business, we will actively promote human resources development and other forms of investment in humancapital.

Basic Policy of Our Human Resources Strategy
To become the “Employer of Choice,” the most rewarding company to work for, by creating an organization, workplace and culture that encourages employees to take on challenges and act autonomouslyFoster a corporate culture that encourages innovation by endorsing ideas and changes that are not bound by precedentBuild a culture that encourages individual performance and collaboration to achieve goals with a “Safety Number One” mindset
To assign the right people to the right positions and conduct appropriate evaluations and compensation in order toenable diverse human resources to play an active role
Develop and deploy leaders at a global level to adapt to business speed and create value by integrating human resources
with diverse backgrounds
Enhance motivation through highly transparent evaluations and competitive compensation based on such evaluations
To secure and develop human resources capable of continuously creating value in a changing business environment andimprove their engagement
Establish recruitment branding to build understanding and empathy for the Company’s businesses
Provide practical growth opportunities to increase on-site and technological capabilities

INPEX HR VISIONAs a company operating across the world, we view workforce diversity andcommon values shared by our global workforce as essential for sustainable andresponsible business management. To achieve these goals, our Human Resources (HR) Unit developed the INPEX HR Vision, comprising four key pillars
as a common vision for our Group human resources departments. This vision
has been developed in consultation with the heads of HR departments in eachcountry. With these four core pillars, we are working to create an internationallycompetitive organization by applying a global perspective as we implement
HR initiatives to improve the capabilities of our employees and teamperformance.

Organization
Effectiveness

Focus on People
Development

Maximize teamperformance throughHR management
process

Develop future
leaders and global
workforce capability

INPEX HR Vision
Talent Attraction
and Engagement

HR
Excellence

Make INPEX the bestplace to work:“Employer of choice”

Support businessstrategy withworld-class
functional expertiseINPEX CORPORATION Integrated Report 2023

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071

Human Capital

Development of INPEX Values to Become the Employer of Choice

Promoting INPEX Values

At INPEX, we recognize that for each employee to demonstrate their full potential—regardless of age, gender, nationality, or other characteristics—it is important to adhere to
the shared INPEX Group Values for both Group officers and employees to live andchampion.
In addition, we regularly host psychological safety seminars for officers and employees,
Open Offices (Dialogue with President & CEO, Senior Executive Vice Presidents, SeniorVice Presidents) and town hall meetings. We also foster communications through activities
like team building exercises. Our aim is to create an organizational culture where people
feel empowered to be themselves and contribute to innovation, ultimately striving to become the “employer of choice” at a global level.

We are pursuing various measures to promote INPEX Values, including INPEX Values
Awards, INPEX Values Interviews and creation of an intranet focusing on INPEX Values.
One new measure for promoting INPEX Values involves holding a symposium that features
the winners of INPEX Values Awards. In fiscal 2023, the five winners of the award for safety
made presentations and talked with symposium attendees about the specific safety actions that they put into practice. We will continue to promote INPEX Values and holdsymposiums featuring past winners to further raise awareness of INPEX Values and sharevalues.

INPEX Values

Collaboration

SafetyWe rely on unity and team spirit
to bulld strong professional
working relationships within
INPEX as well as within thecommunities in which we
operate.

Anzen dai ichi – ‘Safety
Number One’ – is the way
we think, act and promote
safety at INPEX that forms
the core of a strong HSE
culture.

Integrity

Ingenuity
We embrace initiative andinnovative proplem-solving
at every level of INPEX andcelebrate our successes
at every opportunity.

We are ethical, honest andtrustworthy in our business
relationships andprofessional in our conduct
at all times.

Diversity

We proactively embrace our individual
differences which is central to who we areat INPEX and what makes a unique andwelcoming workplace environment.

Enhancement of Group Collaboration
To achieve sustainable growth for the Group in a rapidly changing business environment,
we believe it is important for our foreign employees (who account for approximately 40%
of our workforce) to collaborate. We encourage teamwork to cultivate growth andinnovation, by leveraging shared knowledge and individual experiences and integrating
strengths and capabilities. Specifically, we are building an organization where our
employees from both local and overseas subsidiaries can collaborate and support
individual projects. This involves holding regular global workshop meetings andtechnology exchange meetings across various divisions, as well as ongoing efforts toshare knowledge, experience and pursue best practices across the Group.
We support HR development by providing leadership programs and skills-related
training tailored to the circumstances of each country. Our head office leadership training

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Human Capital

program, designed for emerging leaders across local and overseas subsidiaries, aims tobroaden their horizons and strengthen unity within the Group. While temporarilysuspended during the COVID-19 pandemic, the program resumed in FY2023, with sevenemployees from Australia working at our head office.

Human Resource Development
In line with its Basic Policy on human resources (HR), INPEX implements initiatives aimed
at developing employees who embody the Company’s desired qualities, support positive
organizational culture, and contribute to the medium- to long-term growth of its workforce. In addition to providing training on the knowledge and skills required for each job
grade and managerial position, we also offer business training for personnel to acquire
specialized knowledge and business skills for the energy industry. Specific leadershiptraining has also been developed to strengthen management skills of global-level leaders. This includes programs focused on cultivating internationalism, strengthening leadership and management capabilities, as well as diversity, equity, and inclusion (DE&I)
training to enable participants to work and produce results with diverse workforce. We
also conduct age-specific career workshops and implement a fast-track selective programfor chosen employees, to support early career development. Through these training programs, we can not only provide employees with the necessary business knowledge andskills, but to also cultivate an awareness of their own growth. In this way, we aim to support the performance and growth of program participants and contribute to long-term
success and development of the organization as a whole. In FY2023, a total of 564 employees participated in our leadership development and related programs, including
next-generation leader selection and development.
Approach to HR Development (extract from the employees’ guidebook)
Support based on a midto long-term perspective

The Company provides support to employees from a mid- to long-term
perspective, so that they can achieve self-actualization through their work.

Support for developmentwith an emphasis on
independence

The Company actively supports those who think and keep making efforts
independently. In order to help employees to demonstrate their abilities
at a higher level, the Company provides employees with opportunities toacquire human, conceptual, and technical skills.

Support for autonomous
career development

The Company supports all employees to have a career ownership mindset
that allows them to choose their career based on their own values. The
Company provides them with opportunities to think proactively and findtheir own role.

HR Evaluation and Allocation
At the core of INPEX’s approach to HR management, is a commitment to fairness in its
personnel system. This approach is based on three concepts: a fair job-based grading
system, a pay-for-job/performance compensation system, and a transparent evaluation
system.
We conduct HR evaluations along two axes: work target evaluations (target management) and work behavior evaluations (competencies). Accordingly, we disclose the evaluation process and criteria to those being evaluated to ensure transparency and fairness,and connect achievement of performance targets for the organization with the growth ofindividuals. We do this by (1) setting targets linked to high-level targets and work responsibilities, (2) providing real-time feedback and progress confirmation,and (3) ensuringwell-balanced evaluations and treatment. To fully implement this evaluation system fornon-managerial employees from FY2024, we are providing briefings on HR evaluations
for both those being evaluated and those conducting the evaluations.
We are also striving to set appropriate targets in line with work responsibilities, andimprove understanding and awareness of thee valuation system. To support the continued development of our personnel, we are working to prevent rigidity in personnel assignment, the dependency on individuals, and reduction in opportunity for promotion.
We do this by regularly reviewing the position, succession plan, and talent of executives
in each division. A tenure system has also been introduced for line management positions. Each year, employees are encouraged to declare their job and division preferences,to help management better understand their career outlook. We also provide regular
one-on-one meetings between employees and their supervisors, where dialogue canlead to medium- to long-term career development. In addition, we provide opportunities
for employees to pursue their own career paths through an internal job posting system.
This leads to more appropriate personnel allocation and assignment while motivating
employees. Concurrently, we run a return-to-work program to welcome back motivatedemployees who had resigned from the Company due to unavoidable personal reasons.

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Promotion of Diversity
INPEX respects international norms on human rights in accordance with the INPEX Group Code of Conduct. We do not discriminate based on factors such as race, skin color, gender,
sexual orientation, gender identity, age, creed, religion, birth, nationality, disabilities, or educational background. We mutually respect and utilize the individuality and diversity of every
employee, and strive to ensure employees have fair and equitable access to opportunities for self-fulfillment and career development. We do not tolerate harassment or behavior that
could be misconstrued as harassment.
We want all personnel to fully understand the importance of DE&I. We aim to create an organization in which people can freely and openly express their opinions without beingbound by preconceived notions, continue to try new things, and innovate. Therefore, we aim to build a workforce that creates business value based on acceptance of diversity, willingness to grow, and autonomous behavior.
We consider promotion of DE&I to be an essential element of INPEX becoming the employer of choice. Through this approach, we will create an active and diverse workforce to help
us achieve sustainable growth even in a rapidly changing business environment.
We aim to become a company that is valued for its contributions in creating a more prosperous society.

Promotion of Women’s Empowerment
In line with our policy on DE&I, we are intent on creating an environment that enables
women to showcase their full potential. We recognize there is uneven representation of
females across job categories and their underrepresentation in managerial roles. To address these issues, we are actively recruiting mid-career women with management capabilities. Similarly, our graduate recruitment efforts focus on boosting female representation
by participating in targeted events for female students. In this and other ways, we areworking to achieve recruitment of at least 30% females in each year’s new employee
cohort.
Our previous target was for women to fill 4% of management positions (as defined byour grading system*) by December 31, 2023. We were pleased to achieve this target, withwomen filling 4.3% of management positions by the end of 2023. Going forward, we aim
to increase our target to 6% during FY2025 through more intensive mid-career recruitmentof women across management roles.
When promoting or appointing personnel, we also evaluate employees who are temporarily restricted from performing their work duties due to life events in an appropriatemanner to avoid impeding on their career advancement.
In FY2021 and FY2022, we held unconscious bias seminars for all personnel. In FY2023,
we also held internal seminars on the subjects of gender bias and women’s empowerment,with a total of 387 males and females attending. In efforts to develop greater female leadership, we selected six females from within the Company to attend an external training
program. Through these initiatives, we are promoting greater diversity in the workplaceand building a foundation for more active participation of female employees.
*Non-consolidated employees including seconded employees but excluding the employees who are temporary transfer to INPEXOther Initiatives to Promote DE & I
In addition to the above initiatives, we are implementing the followings to achieve DE & I.
In the area of childcare support, we are actively disseminating information and details of
the system regarding paternity leave for male employees, and the rate of male employees
taking paternity leave is on the rise. We are also focusing on creating an environment where
employees can obtain support from those around them through training for supervisors
who have employees who are in the child-rearing generation.
To promote understanding towards LGBTQ+, we have conducted internal training andevents in cooperation with LGBT ALLY*. We have also worked to establish internal systems
that allow employees to refuse business travel orders for the reason that they are LGBTQ+,
and treat same-sex partners of employees and their children as family members.
We are also actively hiring foreign employees, and we are working to create an environment where employees can be comfortable by providing relocation support and Japanese
language lessons when they come to Japan.
As an initiative to encourage autonomous activities by seniors, we offer career consultation to employees aged 55 with qualified personnel, and many of our employees who reachthe retirement age are transferred to INPEX Solutions,LTD. a fully owned subsidiary, where
they can make use of their expertise.
In promoting the employment of people with disabilities, we are providing appropriate
support tailored to their disability status and workplace environment, while maintaining an
employment rate that exceeds the legally required rate in Japan.
By continuing to promote these initiatives, we will create a work environment in which all
employees can enjoy their full potential.
*Ally: A supporter and person who understands related issues

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Roundtable with Outside Officers

We will monitor theprospects and growthstrategies depicted in
INPEX’s long-term
vision from an
independent,
external perspective.
Growth strategies of energy
companies must gain theconfidence of the market
Morimoto: As the Tokyo Stock Exchange requires listedcompanies to “implement management that is consciousof cost of capital and stock price,” INPEX announced“Sustainable Growth of Corporate Value” in August 2023
and has been making efforts accordingly. I commend
company president Takayuki Ueda for leading INPEX toward its objective of improving the price book-value ratio(PBR). I believe that the market has taken a favorable viewof INPEX’s clear policies, including carbon neutrality.
Nishimura: For INPEX, which bears the social responsibility of serving as an energy supplier, it is extremely important that it gains the confidence of the market in its growthstrategy. INPEX analyzed the reasons why the market’s

Hideka Morimoto
Director (Outside)

Jun Yanai

Director (Outside)

evaluation of the company’s performance was not commensurate with its reasonably strong financial results, andsummarized them into three core themes of “improving
capital efficiency,” “growth initiatives to gain market confidence” and “stronger shareholder returns and deeper
dialogue with investors.” I feel we can say the company
has taken a significant step forward with this integrated
approach, and it is now steadily implementing each ofthese initiatives.
Yanai: Looking at shareholder returns, the announcementof INPEX’s share buyback has been well received. This willcontribute to enhanced capital efficiency, and with regard
to market confidence, the role of the Ichthys LNG Project

Atsuko Nishimura
Director (Outside)

is attracting renewed attention as geopolitical instability
poses a threat to the stable supply of energy. I am confident that the company is in good shape with regard to
the three core themes. And I think the fact that the company is expanding its business in large-scale, low-environmental-impact LNG projects from Ichthys to Abadi whilesteadily laying the groundwork for the future by determining the feasibility of its 5 net zero businesses is being
viewed favorably from the perspective of ESG.
Morimoto: At Investor Day, an information session designed to reinforce dialogue with investors, many analysts
inquired about ESG and the 5 net zero businesses, and I
sensed a growing interest in these areas. INPEX plans to

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Roundtable with Outside Officers

make a significant, long-term investment in the Abadi LNG
Project. It will be incumbent on the company to continue tocommunicate to the market its stance of promoting investments in smooth energy transition while minimizing risk byachieving synergy between the LNG business and the 5 net
zero businesses, including making energy cleaner throughcarbon capture and storage (CCS).
Nishimura: INPEX’s business is highly specialized, and its
operation sites are in some ways distant and difficult to understand, but at Investor Day, the project’s field staff andmanagers provided a frank explanation of progress and issues, and I felt it was a meaningful and effective way toshare information on the project. I hope that, as an energy
company that accepts the challenge of an exciting future,
INPEX is able to secure the confidence of the market.

Direction of long-term vision
based on decarbonization andclimate change response
Morimoto: In May 2023, the Japanese government enacted the GX Promotion Act and launched a policy to promote decarbonization investment in the public and private
sectors combined of at least 150 trillion yen over 10 years
with the aim of achieving net zero emissions by 2050. The
direction that the company is taking through INPEX Vision@2022 is consistent with these developments. I believethat the integrated promotion of transitional energy supply
from the LNG projects and initiatives in the 5 net zero businesses in particular is contributing significantly to bringing
about a net zero carbon society in Japan.

Nishimura: In addressing decarbonization and climatechange, companies are required to produce concrete results over an extremely long period of time, and their efforts will continue to grow in importance. For energy
companies, while there is the risk of fossil fuels becoming
stranded assets, if they can deliver clean, diverse energy
supplies, they should be able to capitalize on significant
growth opportunities given the constant expansion in energy demand. Being aware of these risks and opportunities, INPEX has clarified the fundamental principles of its
long-term vision through a series of revisions to its Corporate Position on Climate Change established in 2015,
identifying the upstream energy business and 5 net zerobusinesses as its two focus areas. To continue the upstream energy business, it will be essential to make energy cleaner, and the synergy with the 5 net zerobusinesses that Mr. Morimoto alluded to earlier will bevery important. I also believe that the challenge in capturing opportunities in the 5 net zero businesses is to carefully evaluate the economics and profitability over time,

including such factors as working with partners, constructing supply chains and securing demand.
Yanai: As damage from extreme weather events owing to
global warming spreads, the world’s demand for energy
companies, such as majors in Europe and the US—which
are enjoying unprecedented profits on the back of risingresource prices—to proactively work to combat climatechange and move toward net zero emissions is growing
even stronger. INPEX’s goal of achieving net zero emissions represents a challenge to leverage the knowledge it
already possesses in discovering possibilities from projects with business potential. I think this is an excellent initiative and hope it will continue. Meanwhile, despite themany innovations that have been created worldwide,
however, the demand for climate change solutions andnet zero emissions technologies has not yet been significantly tapped into. In line with what Mr. Nishimura justsaid, we need to establish businesses while evaluating
their economic potential and profitability in a manner thatinvolves customers, and to link social value provision to
INPEX’s own corporate value enhancement.

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Roundtable with Outside Officers

Evolution of the Board of Directors
and findings from theeffectiveness assessment
Yanai: Of the three of us, I have the longest tenure as an
outside director of INPEX, having served since 2016.
Looking back at the past eight years, I feel that the Boardof Directors has evolved considerably since that time as
discussions are more active and higher in quality. One element that may have helped facilitate this evolution is theannual evaluation of the Board of Directors’ effectiveness.
I believe that opinions being expressed so frankly andopenly and the implementation of a series of remedial
measures in response to those points greatly enhanced

members with a wider range of attributes and backgrounds to ensure diversity. At meetings of the current
Board, such people are raising opinions and questions
from a host of different perspectives, leading to deeper
discussion.
Nishimura: Corporate governance is the basic foundation for a company’s sustainable growth. My view is that
INPEX has firmly established its basic policy and is constantly working to improve it. The company also shares a
lot of information with us as outside directors, such as byproviding explanations and materials ahead of time,
which is evidence of the company’s commitment to theproactive incorporation of outside opinions.
Moreover, as Mr. Yanai noted, the company has continued to be proactive in its efforts to ensure diversity as a
key theme, and I hope that this will bear fruit and lead tofurther progress.
Morimoto: I became an outside director in 2022, and I
feel that company president Ueda and the other members of the Board want me to speak out, as I have been

involved in Japan’s environmental administration—adifferent field, so to speak—and they respond to mycomments with sincerity, allowing me to share my views
without trepidation. I receive explanations from the executives, and have discovered many things in the process. In our interactions, which resemble playing catch,
I am always considering how to contribute while deepening my understanding of the business.
Yanai: In the previous effectiveness assessment, it was indicated that the Nomination and Compensation Advisory
Committee should provide more extensive feedback to
the Board on the content of the committee’s discussions.
The way I see it, as I am chairing the committee from2024, many people attend INPEX Board meetings, including members of the Secretariat, and given the nature of
the committee, which is involved in nominations andcompensation, not all of the specifics of our discussions
can be disclosed. I do believe, however, that areas related
to the foundation of management, such as the process of
selecting directors and the compensation system, should
be shared at Board meetings as needed.

Future challenges related togovernancethe Board’s effectiveness. Previously, many of INPEX’s outside directors and outside Audit & Supervisory Board
members were from the energy industry, but we now haveYanai: I think the public is taking a hard look at our business as it is directly related to the prices they pay at thepump and other aspects of their lives. As such, in terms ofcorporate defense, I believe that ensuring compliancewith the law remains a top priority of governance.
Moreover, risks such as geopolitics, oil prices, environmental issues and climate change facing the company are

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Roundtable with Outside Officers

increasing. As an outside director, I intend to constantly
monitor INPEX’s risk inventory.
Nishimura: I believe that governance is not only about
defense—serving a check-and-balance function to monitor and supervise management execution and ensuring
compliance and risk management—but also about offense, which encourages risk-taking and accepting challenges as appropriate, thereby contributing to corporate
value enhancement. I would like to be more aware of thisand contribute to the further growth of INPEX.

The role of outside directors in thelead-up to the next medium-termbusiness plan
Morimoto: INPEX is a company with the meaningful mission of providing Japan and the rest of the world with astable supply of energy. And I believe that it can achieve
this mission through the collective, parallel efforts of its
many stakeholders. My intent is to view issues and act
from the varied perspectives of this diverse group of
stakeholders. In this sense, I believe there are three roles
that outside directors must play. One is to firmly support
efforts in the 5 net zero businesses, which have finally entered the implementation phase. Initiatives in these businesses will require institutional framework developmentin tandem with corporate efforts. I will keep abreast of
government developments while pointing things out andoffering advice that will align the company’s path with thegovernment’s. Secondly, the net zero businesses are newareas, so INPEX may be somewhat lacking in aspects suchas technology and human resources. I will address thosevision. The upcoming medium-term business plan will
move on to the key phase of giving shape to the vision
which, given the significant changes in the external environment, will be quite a challenging task. I believe that mystrong familiarity with energy security and the international order structure, which I have cultivated as a diplomat, can be put to good use in discussions on the form
INPEX should take going forward as a global energy company. With regard to our mission to communicate anddisseminate this vision to the younger generation, I will
apply my experience as a university educator to help
make an exciting future for INPEX.

areas in particular and contribute to strengthening thecompany’s internal systems. Thirdly, I am focusing on thevalue of INPEX’s many infrastructures and its technological expertise—including its domestic pipeline—and oneof my key themes is to see this utilized in the energy
transition.
Yanai: I think what should be emphasized in formulating
the next medium-term business plan is the communication of the company’s vision to all stakeholders—including shareholders and investors—in an easy-to-understandmanner. As INPEX is a company with the social responsibility of supplying energy, there are many areas in which
its vision overlaps with its mission, so all employees
should share that vision. While monitoring the process ofdrawing up such a vision, I intend to offer my thoughts as
an outside director.
Nishimura: INPEX has steadily produced results with thecurrent medium-term business plan by executing growthstrategies based on the direction set forth in its long-term

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Corporate GovernancePursuit of Stronger Governance
History of Efforts to Strengthen Corporate GovernanceOctober 2008

June 2012

Business integration
Introduces Audit & Supervisory Board Member organizational structure and Executive Officer System
Appoints 4 outside directors
Strengthens governance concerning directors and executive officers
Reduces the term of office for directors and executive officers from 2
years to 1
Appoints an additional independent outside director (from 4 to 5 in total)Establishes the INPEX Advisory Committee (to obtain multifaceted andobjective recommendations from domestic and international experts)
Establishes a guideline for the purchase of INPEX shares by directors
and executive officers
Begins early mailing of notices of general meetings of shareholders(3 weeks ahead of the meeting date)June 2015

Starts to apply the Tokyo Stock Exchange’s Corporate Governance
Code (CG Code)November 2015

Formulates the Corporate Governance Guidelines

March–April 2016

Evaluates the effectiveness of the Board of Directors (for fiscal 2015)
Note: Evaluation conducted every year thereafter

May 2016

Establishes the Audit & Supervisory Board Members’ Office

Introduces a stock-based remuneration system for directors and executive officers (excluding outside directors and non-residents in Japan)
June 2018
Changes the composition of the Nomination and Compensation Advisory Committee so that a majority of its members are outside officers
Newly appoints a female Audit & Supervisory Board member
June 2019
Establishes a Corporate Governance Strategy group
Evaluates the effectiveness of the Board of Directors (by hiring a
November–December third-party evaluation organization for the first time, and doing so at
2020
intervals of about 3 years thereafter)
Establishes the Sustainability Principles
November 2021
Formulates and publishes a skill matrix
Newly appoints an independent outside director who has knowledge
in the sustainability field

March 2022
January 2017

Establishes the Nomination and Compensation Advisory Committee

Increases the number of independent outside directors (from 5 to 6)
June 2017

March 2024
Newly appoints a female director

Revises the officer compensation system
Compensation for directors and executive officers consists of basic
compensation, bonuses (short-term incentive) and stock-based remuneration (medium- to long-term incentive)
Compensation for outside directors and Audit & Supervisory Board
member consists only of basic compensation
Appoints an independent outside director to chair the Nomination andCompensation Advisory Committee

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Corporate Governance

Overview of the Corporate Governance Structure

Corporate Governance Guidelines

INPEX has adopted an Audit & Supervisory Board Member organizational structure, under
The mission of the Company is to contribute to the creation of a brighter future for society
which Audit & Supervisory Board members audit the execution of operations, which are inthrough our efforts to develop, produce and deliver energy in a sustainable way. Throughturn carried out by directors well versed in their field. In addition, the Company has introour business, we aim to become an integrated energy company that contributes to the
duced an Executive Officer System to pursue management with agility and efficiency. INPEX
community and makes it more agreeable and prosperous. Based on this mission, tofrequently engages in negotiations with the governments of oil-producing countries andachieve sustainable growth and increase corporate value over the medium to long term,
overseas oil companies. This necessarily requires internal directors and executive officers who
the Company fulfills its social responsibilities in cooperation with its shareholders andhave knowledge, expertise and international experience relating to the Company’s businessother stakeholders, and works to enhance its corporate governance for the purpose ofand both a sound knowledge of the Company and their particular field of expertise.
conducting transparent, fair, timely and decisive decision making. The INPEX Group madeInternal directors, in principle, hold the concurrent position of executive officers. By
clear its basic views and policies on corporate governance and, with the aim of ensuring
adopting this concurrent organizational structure, the Company’s Board of Directors is bettransparency and fairness in the Company’s decision making, as well as realizing effective
ter placed to execute operations in an efficient manner. At the same time, this structure
corporate governance by carrying out the proactive dissemination of information, formulated its Corporate Governance Guidelines. Please refer to our Web site for details.
helps to ensure effective operating oversight. In addition to enhancing the transparency ofmanagement and bolstering the ability of the Board of Directors to carry out its supervisory
function, INPEX has appointed five of its 10-member Board of Directors from outside theCompany. Through this initiative, steps have been taken to ensure that management issues
are considered and deliberated with a greater degree of objectivity from an independent
standpoint.
Moreover, four of the Company’s five Audit & SuperCorporate Governance Framework
visory Board members are also appointed from external sources. In addition to putting in place an Audit &General Meeting of Shareholders
Supervisory Board, INPEX has set up the Audit & SuAppointment/Dismissal/
pervisory Board Members’ Office and deployed dediAppointment/Dismissal/
Appointment/
Setting of range of
Setting of range of compensation
Dismissal
compensationcated staff and is reinforcing collaboration between
Reporting
Nomination and Compensation
Auditing
Audit & Supervisory Board members and the Audit
Audit & Supervisory
Advisory Committee
Recommendation/
Board of Directors
Board (Member)
Advice/Reporting
Unit, as well as independent auditors.
INPEX Advisory Committee
Audit & Supervisory
Outside Directors

Overview of the Corporate Governance Structure
Organizational structure

Directors

Audit &
Supervisory Board
members
Number of independent
directors and auditors
Other

Company with Audit & Supervisory Board Members
Number of directors as stipulatedby the Articles of Incorporation............. up to 16
Number of directors(number of outside directors)................. 10 (5)Term of office................................................ 1 year
Number of Audit & Supervisory Board
members as stipulated by the Articles ofIncorporation........................................... up to 5
Number of Audit & Supervisory Board
members (number of outside Audit &Supervisory Board members)................. 5 (4)Term of office................................................ 4 years
9 (5 outside directors, 4 outside Audit &Supervisory Board members)
Issuance of a Class A Stock to the Minister of
Economy, Trade and Industry

Appointment/
Dismissal/
Supervision

ReportingBusiness
Operation
SystemCompliance Committee
Sustainability Committee
Corporate HSE Committee

Collaboration

Collaboration

ReportingBoard Member (full-time)

Audit & Supervisory
Board Members’ Office

Collaboration

Auditing

Accounting audit

Reporting

Collaboration
ReportingExecutive
Committee

ReportingAppointment/
Dismissal/
Supervision

President & CEO

Information Security Committee

Executive Officers

INPEX Value Assurance System Committee

Divisions and Subsidiaries

ReportingInternal audit

Collaboration

Audit Unit

Collaboration

Accounting
audit

Accounting
Auditor

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

080

Corporate Governance

Overview of Each Committee

Evaluation of the Effectiveness of the Board of Directors

Directors and the Board of Directors

With the aims of regularly verifying that the Board of Directors is functioning appropriately
and identifying issues to be resolved for continuous improvement, the Company undertakes an evaluation of the effectiveness of the Board of Directors each year, and discloses
a summary of the evaluation results. Based on this policy, theninth evaluation was conducted in
Surveyfiscal 2023. The evaluation method
and summary of the results are as
follows. Based on these evaluation
Tabulation/
results, the Company will continue
Process of
Action on
analysis of
to strive to improve the effectiveeffectivenessissuesresults
ness of the Board of Directors.
evaluation

The responsibilities of the Board of Directors shall be to fully exercise its supervisory function, secure fairness and transparency in management, and ensure sustainable growth andincrease corporate value over the medium to long term through implementation of effective corporate governance, with recognition of its fiduciary responsibility to shareholders.
The Company’s Board of Directors comprises 10 members, five of whom are outside directors. The Representative Director,President & CEO, who is the most well versed in ouroperations, serves as the Chair of the Board to ensure efficient discussions.
In addition to a monthly meeting, the Board of Directors meets as necessary to discussand determine matters concerning management strategy and important business execution, and to supervise the execution of duties by directors. The term of office for directors
is set at one year. In addition to enhancing the ability of directors to respond to changes in
the Company’s global operating environment in a timely manner, this initiative helps tofurther clarify management responsibilities.
Composition of Board of Directors
Skill item

Board ofDirectors
Audit & Supervisory
Board Members
Total

NumberOutside(Female)Percentage of
Independent Independent
Directors
Directors

10

5 (1)

5

50%

5

4 (1)

4

80%

15

9 (2)

9

60%

Ratio of Independent Outside
Directors Among All Directors

Independent
OutsideDirectors

50%

Number ofdeliberations

Individual projects (oil and gas business)

41

Corporate GovernanceManagement Strategy, Business Strategy, andDialogue with the Market
Finance & Accounting

23

HSE

10

Individual projects (5 net zero businesses)

10

General Meeting of Shareholders

8Compliance

7

17

5

Sustainability
Total

Evaluation
method

10%

144

1/10

FemaleDirectors

 pdates on issues from last year and the effectiveness evaluation method
Ufor fiscal 2023 were discussed at a meeting with outside directors and Audit& Supervisory Board members. The method of self-evaluation by the Boardof Directors (an anonymous questionnaire survey) was adopted.
 major law firm was appointed as a third-party evaluation organization toAvalidate the survey content and composition, the consolidation and analysis method used by the Board of Directors secretariat and the draft action plan.

Ratio of Female Directors Among
All Directors

23

Discussion among
outside directors,
Audit and Supervisory
Board members andrepresentative
directors

Evaluation of the Effectiveness of the Board of Directors

5/10

The details of specific discussions and number ofdeliberations at the Board of Directors meetings infiscal year 2023 are as follows.
Details of specific discussions

Review of evaluation
results and identification of issues by the
Board of Directors

Surveyitems

Self-evaluation
Composition of the Boardof Directors
Operation of the Board of
Directors
Support system for the
Board of Directors

 oles and responsibilities of the Board ofR
Directors
Nomination and Compensation Advisory
Committee
Actions on the previously prepared action
planComments

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

081

Corporate GovernanceDiscussions at Board of Directors Meetings

Summary of fiscal 2023 evaluation results
 egarding the composition of the Board of Directors, the knowledge and experience ofR
its members are sufficiently diverse. Although generally there is no problem with the sizeof the Board of Directors and the ratio of outside directors under the current circumstances, going forward, discussions regarding the desired state of the Board of Directors,
including ensuring further diversity, should be deepened.
Initiatives to stimulate discussion at Board of Directors meetings, such as holding pre-meeting briefings, sharing discussions at Executive Committee meetings, etc., and explaining
and annotating technical terms, are all effective and should be continued.
The holding of lectures by outside experts, tours of operation sites in Japan and overseas,and other measures adequately ensured that non-executive officers were provided with
opportunities to improve their knowledge and understanding, and these efforts should
be continued.
The Nomination and Compensation Advisory Committee has played a necessary role indeliberations in the fields of both nomination and compensation, etc. Going forward, theindependence of the Nomination and Compensation Advisory Committee should be further enhanced, and the efforts to strengthen cooperation with the Board of Directors
should also be continued and deepened.
As a result of the summary of the individual evaluation results including the above, theBoard of Directors as a whole was evaluated as being sufficiently effective overall in FY2023
as in the previous fiscal year.

Efforts towards further evaluation of effectiveness
The following action plans have been established to further ensure the effectiveness of the Boardof Directors going forward.

Actionplans

	Enhance discussions regarding strategies
	Stimulate discussion at
Board of Directors meetings	Enhancement of the function of theNomination and Compensation Advisory
Committee
	Deeper discussions regarding thedesired state of the Board of Directors

The third-party evaluation organization has concluded that the Board of Directors secretariat has
appropriately consolidated and analyzed the results of the evaluation, and that the action planspresented above, drawn from these results and analysis, have been suitably established.
Based on these evaluation results, the Company will continue striving to improve the effectivenessof the Board of Directors.
More information on the summary of the effectiveness evaluation results for the
Board of Directors is available on our website.

The following activities were conducted in fiscal 2023 in light of the results of the fiscal 2022
evaluation of the effectiveness of the Board of Directors and other factors.

1. Expand discussions on management strategy
Regularly reported on the progress of INPEX Vision @2022 to the Board of Directors.
 or matters that would have a particularly large impact on achieving the plan, set up
Findividual deliberation items and held multiple discussions.
2. Further revitalize discussions at Board of Directors meetings
 rovided a fuller introduction to the issues discussed at Executive Committee meetingsPand earlier in the Company.
In the process of reaching a resolution on new matters, clarified the background circumstances of the matters and held multiple deliberations as needed.
 eld lectures by outside experts and exchanges of opinions with the Board of Directors
H
on timely topics such as the situation in the Middle East. Secured opportunities forexchange such as social gatherings for officers and organized tours of major operationsites in Japan and overseas for outside officers.
 ontinued to provide materials and briefings in advance and implemented new initiaC
tives, such as the presentation of matters for intensive deliberation, for ensuring thatthe meeting was conducted in a smooth and effective manner even within the limited
time available.
3. Hold in-depth discussions on the desired state of the Board of Directors
 eld more in-depth discussions through the Nomination and Compensation Advisory
H
Committee on further expanding the diversity of Board of Directors members and on
the appropriate size and composition of the Board of Directors, and provided the contents of these discussions as feedback to the Board of Directors.
4. Continue strengthening portfolio management
 iscussed the concept of fund allocation and other topics based on the status of eachDbusiness in the 5 net zero fields.
 rganized information on net present value (NPV) and risks by core area and reportedO
to the Board of Directors on an ongoing basis.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

082

Corporate Governance

INPEX Advisory Committee

Nomination and Compensation Advisory Committee
Number of meetings held in FY2023: 6

Members’ attendance: 100%

The Nomination and Compensation Advisory Committee was established in January 2017 as
an advisory body to the Board of Directors with the aim of strengthening the functional independence and objectivity as well as accountability of the Board of Directors in connection with
the nomination and compensation of directors. It deliberates on the nomination and compensation of directors, etc. and submits reports to the Board of Directors.
One inside director and three independent outside directors (including one to serve as thechair of the committee) were appointed during the extraordinary meeting of the Board of Directors held on March 26, 2024, and they assumed their positions on the same day.
Chair: Jun Yanai (Independent Outside
Director)
Member: Norinao Iio (Independent Outside Director)

Member: Atsuko Nishimura (Independent
Outside Director)
Member: Takayuki Ueda (Representative
Director, President & CEO)

Issues discussed (Nomination)

 rogress of the Medium-term Business Plan, status of major busiP
ness issues and restructuring of the execution organization
New team of executive officers for fiscal 2024
		Requirements for inside/outside directors (redefinition)
		Candidates for directors and representative directors
		
Skill matrix for directors and Audit & Supervisory Board members
		(Compensation) Validation of compensation levels (comparison with a peer group)
The Company’s performance, management indicator results and		division-level performance in fiscal 2023
Performance-based compensation (bonuses and stock-based re		muneration) KPI results
Proposal of bonuses and stock-based remuneration to be paid to		directors for fiscal 2023
(Nomination & Compensation) Annual discussion schedule
Revision of the regulations on the Nomination and Compensation Ad		visory Committee, reelection of the committee’s members and chair

I am Jun Yanai, chair of the Nomination and Compensation Advisory
Committee. As the management environment surrounding energy
companies becomes more complex, INPEX’s mission is to continuously
increase corporate value while both providing a stable energy supply
and addressing climate change. To this end, our president and management team are required to have highly developed capabilities. The
Nomination and Compensation Advisory Committee will steadfastly
lead discussions based on extensive consideration with the understanding that the appointment of board members and an appropriatecompensation system are extremely important management topics.

Jun Yanai

Chair of the Nomination
and Compensation
Advisory Committee

Number of meetings held in FY2023: 2

Members’ attendance: 100%

The INPEX Advisory Committee was established in October 2012 with the aim of enhancing
corporate value and the corporate governance function. Its external experts provide the Boardof Directors with multifaceted and objective advice and recommendations across a wide rangeof areas, including international political and economic conditions, outlook on energy conditions, management strategy suitable for a global company and ways to bolster corporate governance. The committee comprises external experts from Japan and abroad, such as auniversity professor, with extensive knowledge in these areas. The Company’s executives, including representative directors and the head of the Corporate Strategy & Planning Division,
also attend the meetings.
Issues discussed

How to address the 2050 net zero carbon world
Evaluation of the Basic Policy for the Realization of GX and challenges ahead,with a focus on carbon pricing
An outlook for and challenges in the international energy situation, with a focus
on IEEJ Outlook 2024 of the Institute of Energy Economics, Japan
Background and overview of the GX Implementation Council and associatedinternational developments

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

083

Corporate Governance

Executive Committee

Compliance Committee

To expedite decision making related to the execution of business, we have established an
Executive Committee, which flexibly decides on matters outside the scope of issues to beresolved by the Board of Directors and holds deliberations to contribute to decision making by the Board of Directors. The Executive Committee meets weekly and as necessary.
INPEX’s Executive Committee consists of full-time directors, executive officers who aresenior vice presidents and executive officers deemed necessary by the chair and appointed through the committee’s resolution. As of the date of submission of this document, there are 15 members. For efficient proceedings of meetings, the Executive
Committee is chaired by the Representative Director, President & CEO, who is most conversant in INPEX’s business.

The Compliance Committee was established in April 2006 with the aim of promoting compliance initiatives across the entire Group. The committee is chaired by the director in charge ofcompliance and consists of the heads of and directors in charge of standing organizations.

Executive Officer System
We have introduced an Executive Officer System to respond accurately and quickly to a
rapidly changing management environment and to the expansion of our business activities. By delegating authority to executive officers, we are clarifying our structure for business execution and making our management system more agile and efficient. The term ofoffice for executive officers is set to one year to clarify operational accountability for eachbusiness year.

Issues discussed

Number of meetings held in FY2023: 4

 he Group’s basic policies and important matters related to complianceTManagement of the compliance implementation status

Sustainability Committee

Number of meetings held in FY2023: 3

In April 2012, the INPEX Group established the CSR Committee with the aim of better fulfillingits corporate social responsibility and promoting activities that contribute to the sustainable
development of society. The CSR Committee was renamed the Sustainability Committee in
November 2021. The committee is chaired by the Representative Director, President & CEO,and consists of representative directors, the head of the General Administration Division, thehead of the Corporate Strategy & Planning Division and the chairs of the Compliance Committee and Corporate HSE Committee.

Issues discussed

 asic policies on sustainability matters, including corporate governance and cliBmate change response
Important matters related to the implementation of the basic policies

Various committees related to business execution
Various committees related to business execution have been established. Establishedcommittees are Compliance Committee, Sustainability Committee, Corporate HSE Committee, Information Security Committee, and INPEX Value Assurance System (IVAS)
Committee.

Compliance Committee
Sustainability Committee
Corporate HSE Committee
Executive Committee

Information Security Committee
INPEX Value Assurance System Committee

Corporate HSE Committee

Number of meetings held in FY2023: 10

In accordance with the rules on the HSE Management System formulated by INPEX, the Corporate HSE Committee was established on September 17, 2008, with the aim of promoting
health, safety and environmental initiatives. The committee is chaired by the director in chargeof HSE and consists of the heads of and directors in charge of standing organizations.
Issues discussed

Policies and important matters related to HSE

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

084

Corporate Governance

Information Security Committee

Number of meetings held in FY2023: 2

The Information Security Committee was established in November 2007 with the aim of considering and determining all appropriate measures necessary to maintain, manage andstrengthen information security. The committee is chaired by the director in charge of information systems.
Issues discussed Basic policies and important matters related to information security Responses to information security incidents and management of preventive
measures, etc.

INPEX Value Assurance System Committee

Number of meetings held in FY2023: 28

The INPEX Value Assurance System Committee was established in May 2014 with the aim ofcontributing to the Company’s decision-making process with respect to confirmation of thestatus of preparations in connection with important milestones of major projects in which
INPEX participates, and the improvement and promotion of projects. The committee is chairedby the head of the Technical Division.
Issues discussed

 ross-organizational technical evaluations and other activities in different phasesCof new and existing projects, such as exploration, evaluation and development

Audit & Supervisory Board Members and the Audit & Supervisory Board
The Audit & Supervisory Board is composed of five Audit & Supervisory Board members,
four of which come from outside. In addition to attending meetings of the Board of Directors and the Executive Committee, the Audit & Supervisory Board members review theexecution of business duties by directors and executive officers through reports from andinterviews with related departments. Furthermore, the Audit & Supervisory Board members meet on a regular and as needed basis with the Independent Auditors to receive reports on audits from them and exchange views on key audit issues.
The Audit & Supervisory Board members also exchange views with the internal audit
department (Audit Unit) as it develops annual audit plans and receive quarterly reports on
internal audits conducted by the Audit Unit. In addition, the full-time Audit & Supervisory
Board members are informed by the Audit Unit about internal audits and the evaluation ofinternal controls, as necessary. To strengthen the auditing function and ensure effective
corporate governance, the Audit & Supervisory Board Members’ Office has been set up
with full-time staff assigned to it. In this manner, efforts are being made to promote collaboration between the Audit & Supervisory Board members, the Audit Unit and the Independent Auditors.
Moreover, we have constructed a system to strengthen the monitoring function throughperiodic meetings with representative directors and directors.

Major resolutions and deliberation items at the Audit & Supervisory Board
Resolutions and Deliberation Items
Policy for deciding dismissal or non-reappointment of accounting auditor, preparation of audit report, reappointment of accounting auditor,
consent to election of Audit & Supervisory Board Member, selection ofchairman and board member (full-time) of Audit & Supervisory Board,
audit plan for the current fiscal year, consent to accounting auditor remuneration, discussion with accounting auditor regarding KAM (key audit
matters), implementation procedures of accounting auditor’s non-assurance service etc.
Reports on internal audit, reports on accounting audits and reports conReporting Items
taining reviews of quarterly results by accounting auditors, reports onfieldwork and business trip by Audit & Supervisory Board Members, internal control audit report related to financial reporting etc.

Situation of Internal Audit
The Audit Unit was established under the direct supervision of the President & CEO as aninternal audit department independent of the divisions involved in the execution of theCompany’s business. In developing annual audit plans, the Audit Unit discusses and exchanges opinions with the Audit & Supervisory Board Members, and after obtaining thePresident & CEO’s approval, makes reports to the Board of Directors. Additionally, the results of the internal audits are reported at meetings of the Board of Directors / Audit &Supervisory Board and to the President & CEO, full-time Audit & Supervisory Board Members, and are shared with accounting auditors. We endeavor to ensure the expertise of
those involved in internal audits. Furthermore, to continuously improve the quality of internal audits, it is stipulated that an external quality assessment by an independent assessor
is to be conducted at least once every five years.

Accounting Audit and Auditor Compensation
In accordance with the Companies Act and the Financial Instruments and Exchange Act,
we accept accounting audits from Ernst & Young ShinNihon LLC. The amount of auditor
compensation is determined in total based on the audit plan and the number of auditing
dates, after obtaining approval from the Audit & Supervisory Board.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

085

Corporate GovernanceManagement
Directors (As of April 1, 2024)
Name

Takayuki
Ueda
Inside Director
Member of theNomination andCompensation
Advisory Committee

Kenji
KawanoInside Director

Hitoshi
Okawa
Inside Director

Title and
PositionTermofofficeNumberof shares
held

Career summary and concurrently held
positions
Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
July 2010
Director-General, Minister’s Secretariat
August 2011
Director-General, Manufacturing Industries Bureau, METI
September 2012 Director-General, Trade Policy Bureau, METI
June 2013
Commissioner, Agency for Natural Resources and Energy
July 2015
Vice-Minister for International Affairs, METI
April 2017
Councilor (part-time), INPEX Corporation
August 2017
Senior Executive Vice President
June 2018
Representative Director, President & CEO (incumbent)

Inside Director

Representative
Director,
President &CEO

Director, Senior
Executive Vice
President,
Renewable Energy& New Business,
Americas Projects
Unit and Strategic
Projects Office,Compliance, Headof Overseas
Projects
Director, Senior
Managing
Executive Officer,
Senior Vice
President,
GeneralAdministration,
Senior Vice
President,
Oceania Projects

5 years
and 9months32,455

April 1980
March 2006
October 2008
June 2012
March 2020
January 2022

2 years

44,269March 2022
January 2023
January 2024
March 2024

April 1984
May 1994
October 2008
June 2018—

11,844

February 2019
June 2019
January 2022
January 2023
January 2024
March 2024

Director,
Managing
Executive
Officer, SeniorVice President,
Finance &Accounting

April 2013
July 2013
April 2014

4 years

23,514

April 2018
May 2019
June 2019
March 2020
January 2024

ToshiakiTakimoto
Inside Director

Skill matrix
Reason for appointment

April 1980

April 1984
April 2011

Daisuke
YamadaAttendance Attendance at
at Board of Nomination andCompensation
Directors
Advisorymeetings
Committee

Director,
Managing
Executive
Officer, SeniorVice President,
Hydrogen &CCUS
Development

April 1987
January 2004
October 2008

1 year

26,736

June 2013
June 2016
June 2018
June 2019
March 2023
January 2024

Joined Teikoku Oil Co., Ltd.
General Manager, Business Development Department,International Project Division & Domestic Offshore Division
Executive Officer, Vice President, Asia & Australasia, General Manager ofPlanning & Coordination Unit and Offshore Japan Unit of the Company
Managing Executive Officer, Senior Vice President, Asia & Australasia
Senior Managing Executive Officer, Senior Vice President, Asia Projects
Senior Executive Vice President, Americas Projects Unit andStrategic Projects Office, Head of Overseas Projects
Director, Senior Executive Vice President, Americas Projects Unit
and Strategic Projects Office, Head of Overseas Projects
Director, Senior Executive Vice President, Renewable Energy & New Business,
Americas Projects Unit and Strategic Projects Office, Head of Overseas Projects
Director, Senior Executive Vice President Senior Vice President, Renewable
Energy Strategic Projects Office, Compliance, Head of Overseas Projects
Representative Director, Senior Executive Vice President,
Renewable Energy & New Business, Americas Projects Unit andStrategic Projects Office, Head of Overseas Projects (incumbent)
Joined Japan China Oil Development Co., Ltd.
Joined Indonesia Petroleum, Ltd. (INPEX Corporation)
Deputy General Manager, Perth Office of Operation Unit, Ichthys
Project and Planning & Coordination Unit, Asia & Australasia
Executive Officer, Vice President, Ichthys Project, Deputy
General Manager, Perth Office
Executive Officer, Vice President, Ichthys Project, General Manager, Perth Office
Managing Executive Officer, Vice President, Oceania
Projects, General Manager, Perth Office
Managing Executive Officer, Senior Vice President,
Oceania Projects, General Manager, Perth OfficeSenior Managing Executive Officer, Senior Vice President,
Oceania Projects, General Manager, Perth OfficeSenior Managing Executive Officer, Senior Vice President, General
Administration, Senior Vice President, Oceania Projects
Director, Senior Managing Executive Officer, Senior Vice President,
Oceania Projects, General Manager, Perth Office (incumbent)
Joined The Industrial Bank of Japan, Ltd. (currently Mizuho Bank, Ltd.)
Executive Officer, General Manager of Industry Research
Division, Mizuho Corporate Bank, Ltd.
Managing Executive Officer, Deputy in charge of BranchBanking Group, Mizuho Bank, Ltd., Managing Executive Officer
in charge of Corporate Banking, Mizuho Corporate Bank, Ltd.
Managing Executive Officer in charge of Branch Banking Group, Mizuho Bank, Ltd.
Managing Executive Officer, Head of Corporate Banking
Unit (Large Corporations), Mizuho Financial Group, Inc.
Senior Managing Executive Officer in charge of Digital Innovation,
Mizuho Financial Group, Inc. (resigned in March 2019)
Councilor, INPEX Corporation
Managing Executive Officer, Vice President, Finance & Accounting,General Manager, Finance Unit, Finance & Accounting Division
Director, Managing Executive Officer, Senior Vice
President, Finance & Accounting (incumbent)
Director, Senior Managing Executive Officer, Senior Vice
President, Finance & Accounting (incumbent)
Joined Teikoku Oil Co., Ltd.
General Manager, Caracas OfficeSenior Coordinator, South America Unit, America & Africa
Project Division
General Manager, London Office
General Manager, Global Exploration Unit, New Ventures Division
Executive Officer, Vice President, The Americas & Africa
Managing Executive Officer, Senior Vice President, New
Ventures & Global Exploration
Director, Managing Executive Officer, Senior Vice
President, Hydrogen & CCUS Development (incumbent)
Director, Senior Managing Executive Officer, Senior Vice
President, Corporate Strategy & Planning, Legal Affairs,
Head of Net Zero Business (incumbent)

100%

100%

(16/16)

(6/6)

100%
(16/16)—100%(16/16)100%(12/12)

Has abundant operational experience in the Company and also
has insights regarding management of energy development
companies and global business
management as well as administrative/operational affairs.

—

Has abundant business experience in the Company as wellas knowledge and experience
about the business management and administrative/operational matters of energy
development companies.

—

Has abundant business experience in the Company as wellas knowledge and experience
about global business management and administrative/
operational matters of energy
development companies.

—

Has abundant business experience in the Company as wellas knowledge and experience
concerning administrative/operational matters of energy
development companies.

—

Has abundant business experience in the Company as well as
knowledge and experience about
the business management andadministrative/operational matters of oil & natural gas development and development of various
clean energy such as hydrogenand CCUS.

Corporate
management/
Business
administration

GlobalFinance/
Legal/Risk
Technology/
Sustainability
Accounting management
DX

EnergyHR
Sales/
development/
MarketingDiversity

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

086

Corporate Governance

Name

Title and
PositionTermofofficeNumberof shares
held

April 1973
April 2004

Jun Yanai

April 2005

Outside Director
Independent Director

Director

Chair of theNomination andCompensation
Advisory Committee

7 years
and 9monthsApril 2008

0

Independent Director

April 2011
April 2013
June 2013
April 2014
June 2016
June 2016
June 1973
April 2005

Norinao
Iio
Outside Director

Career summary and concurrently held
positions

April 2008

Director

6 years
and 9months

October 2008

0June 2009
August 2009

Joined Mitsubishi Corporation
Senior Vice President, Senior Assistant to Group CEO,
Energy Business Group, Mitsubishi Corporation
Senior Vice President, Division COO, Petroleum Business
Division, Mitsubishi Corporation
Executive Vice President, Group COO, Energy BusinessGroup, Mitsubishi Corporation
Executive Vice President, Group CEO, Energy BusinessGroup, Mitsubishi Corporation
Senior Executive Vice President, Group CEO, Energy
Business Group, Mitsubishi Corporation
Member of the Board, Senior Executive Vice President, Group
CEO, Energy Business Group, Mitsubishi Corporation
Member of the Board, Senior Executive Vice President, Group CEO
and CCO, Energy Business Group, Mitsubishi Corporation
Corporate Advisor, Mitsubishi Corporation (incumbent)
Director (Outside), INPEX Corporation (incumbent)
Joined Mitsui & Co., Ltd.
Managing Officer, Chief Operating Officer, Energy
Business Unit, Mitsui & Co., Ltd.
Executive Managing Officer, Chief Operating Officer,
Europe Middle East and Africa Unit, Mitsui & Co., Ltd.
Senior Executive Managing Officer, Chief Operating Officer,
Europe Middle East and Africa Unit, Mitsui & Co., Ltd.
Representative Director, Senior Executive Managing
Officer, Mitsui & Co., Ltd.
Representative Director, Senior Executive Managing
Officer, Chief Compliance Officer, Mitsui & Co., Ltd.
Representative Director, Senior Executive Managing
Officer, Mitsui & Co., Ltd.
Director, Mitsui & Co., Ltd.
Counselor, Mitsui & Co., Ltd.
Director (Outside), INPEX Corporation (incumbent)

Member of theNomination andCompensation
Advisory Committee

April 2010

AtsukoNishimura

April 1979
Joined Ministry of Foreign Affairs
June 1997
Director, First Africa Division, Middle Eastern and African Affairs Bureau
August 1999
Counselor/Minister, Permanent Mission of Japan to the United Nations
June 2001
Minister, Embassy of Japan in Belgium
September 2004 Professor, School of Law, Tohoku University
Administrative Vice President, Japan Foundation
June 2008
April 2012
Senior Councilor, Japan Oil, Gas and Metals National Corporation(currently Japan Organization for Metals and Energy Security)
April 2014
Ambassador Extraordinary and Plenipotentiary to theGrand Duchy of Luxembourg
Ambassador Extraordinary and Plenipotentiary in charge
July 2016of Women, Human Rights and Humanitarian Affairs
June 2017
Director (Outside), INPEX Corporation (incumbent)(Concurrently held positions)
Outside Director, TAISEI CORPORATION

Outside Director
Independent Director

April 2011
June 2011
June 2017

Director

6 years
and 9months0Member of theNomination andCompensation
Advisory Committee

Joined the Ministry of Construction (currently the Ministry ofLand, Infrastructure, Transport and Tourism)
Attorney at Law admitted to practice in Japan; joinedAnderson Mori & Rabinowitz (currently Anderson Mori &Tomotsune), and later served as Partner
June 1979
Completed a Master of Laws (LL.M.) at Harvard Law School
August 1995
Partner, Komatsu, Koma & Nishikawa (currently Asahi Law Offices)
October 1996
Member of House of Representatives (for one term,
Kanagawa 3rd district)
Managing Partner, Sidley Austin Nishikawa Foreign Law
October 2002
Joint Enterprise
November 2006 Auditor-Secretary, Tohoku University
April 2008
Visiting Professor, Tohoku University
January 2020
Partner, Sidley Austin Nishikawa Foreign Law Joint Enterprise
March 2020
Director (Outside), INPEX Corporation (incumbent)

Attendance Attendance at
at Board of Nomination andCompensation
Directors
Advisorymeetings
Committee

100%

100%

(16/16)

(6/6)

100%

100%

(16/16)

(6/6)

100%

100%

(16/16)(6/6)

Director

4 years0

Independent Director

HidekaMorimoto
Outside Director
Independent Director

Director

2 years0

April 1981
Joined Environment Agency (currently Ministry of the Environment)
September 1997 Private Secretary, Director General of Environment Agency
Private Secretary, Minister of the Environment
February 2002
Director, General Affairs Division, Ministry’s Secretariat
July 2008
Director, Personnel Division, Ministry’s Secretariat
July 2009
August 2011
Councilor, Cabinet Secretariat and Director, Cabinet Secretariat
Nuclear Safety Regulation Organizational Reform Office
September 2012 Deputy Director General, Nuclear Regulation Agency
July 2014
Ministry’s Secretariat, Ministry of the Environment
July 2017
Administrative Vice-Minister, Ministry of the Environment(resigned in July 2019)
Professor, Faculty of Law, Waseda University (incumbent)
April 2020
Chief Director, Institute for Promoting Sustainable
June 2020Societies (incumbent)
March 2022
Director (Outside), INPEX Corporation (incumbent)(Concurrently held positions)
Outside Director, Takasago Thermal Engineering Co., Ltd.

100%
(16/16)100%(16/16)

Expected to provide supervision of
the execution of business from an international perspective and the necessary comments and suggestions,etc. in the meetings of the Board of
Directors, etc. primarily by utilizing his
experience as a corporate executive
and abundant experience and insightin the resource and energy industry.
Expected to provide supervision of
the execution of business from a diverse and global perspective and thenecessary comments and suggestions, etc. in the meetings of the Boardof Directors, etc. by utilizing her abundant experience as a diplomat andextensive insight on international conditions, in addition to expert knowledge as a university professor.

——

Expected to provide supervision of
the execution of business from a sustainability perspective and the necessary comments and suggestions,etc. in the meetings of the Board of
Directors, etc. by utilizing his abundant experience and insight on theenvironment and energy policy developed at the Ministry of the Environment, in addition to expert
knowledge as a university professor.

April 1977

Outside Director

Expected to provide supervision of
the execution of business from an international perspective and the necessary comments and suggestions,etc. in the meetings of the Board of
Directors, etc. primarily by utilizing his
experience as a corporate executive
and abundant experience and insightin the resource and energy industry.

Expected to provide supervision of
the execution of business from a diverse and global perspective andthe necessary comments and suggestions, etc. in the meetings of theBoard of Directors, etc. by utilizing
his abundant experience and insightas an international attorney, in addition to knowledge in a variety offields such as expert knowledge as auniversity professor.

April 1972

Tomoo
Nishikawa

Skill matrix
Reason for appointment

Corporate
management/
Business
administration

GlobalFinance/
Legal/Risk
Technology/
Sustainability
Accounting management
DX

EnergyHR
Sales/
development/
MarketingDiversity

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

087

Corporate Governance

Audit & Supervisory Board Members (As of April 1, 2024)
Name

PositionTermofofficeAttendance Attendance at
NumberAudit &
at Board ofof shares Career summary and concurrently held positions
Supervisory
Directors
Board
held
meetings
meetings
April 1987
June 2010

Akio
Kawamura
InsideToshiyaTone
OutsideIndependent

Audit &
Supervisory
Board Member(full-time)

June 2018

1 year10,359March 2020
April 2021
March 2023

Audit &
Supervisory
Board Member(full-time)

Joined Ministry of Finance
Deputy Commissioner (Planning, Information System
Management, Liquor Tax and Industry), National Tax Agency
Regional Commissioner, Sendai Regional Taxation Bureau
Deputy Director General, Office for the Promotion ofRegulatory Reform, Cabinet Office
July 2017
Regional Commissioner, Kantoshinetsu Regional Taxation Bureau
July 2018
Deputy Director-General for Cybersecurity andInformation Technology Management, Ministry of FinanceJuly 2019
Director-General for Policy Planning, Ministry of Land,
Infrastructure, Transport and Tourism (resigned in July 2020)
November 2020 Executive Advisor, NEC Corporation (resigned in March 2023)
March 2023
Audit & Supervisory Board Member (outside) (incumbent)

OutsideIndependent

100%

100%

(12/12)(13/13)

100%

100%

(12/12)(13/13)

100%

100%

(12/12)(13/13)

100%

100%

(16/16)(17/17)

Reason for appointment

Has abundant business experience in the Company as well as
knowledge and experience
about administration, financeand accounting for oil & natural
gas development companies.

April 1984
July 2012

June 2013
July 2014

1 year0

March 1997

KenichiAsoJoined Indonesia Petroleum, Ltd. (INPEX Corporation)
General Manager, Secretarial Unit, General
Administration Division
General Manager, Accounting Unit 1, Finance &Accounting Division
Executive Officer, Vice President, Finance & Accounting
General Manager, Accounting Unit 1, Finance &Accounting Division
Executive Officer, Vice President, Finance & Accounting
Audit & Supervisory Board Member (incumbent)

Skill matrix

Audit &
Supervisory
Board Member(full-time)

October 2014
June 2016
June 2017

1 year0

June 2018
June 2021
January 2022
March 2023

Joined The Export-Import Bank of Japan (currently Japan
Bank for International Cooperation)
Chief Representative of Representative Office in Beijing
Director General, Credit Department, Credit Assessment
and Systems Group
Director General, Oil and Natural Gas Department,
Energy and Natural Resources Group
Resident Executive Officer, Regional Head for the Asia-PacificManaging Executive Officer, Global Head of Industry
Finance Group, Director General of Marine and Aviation
Finance Department
Managing Executive Officer, Global Head of Industry
Finance Group (resigned in March 2023)
Audit & Supervisory Board Member (outside) (incumbent)

Joined Marubeni Corporation
Executive Officer, General Manager of Finance
Department, Marubeni Corporation
Managing Executive Officer
Representative Director, Managing Executive Officer
Representative Director, Senior Managing Executive Officer
Representative Director, Senior Executive Vice President
Director, Senior Consultant
Consultant
Representative Director and President, MG Leasing
Corporation (currently Mizuho Marubeni Leasing
Corporation)
June 2019
Audit & Supervisory Board Member, INPEX Corporation(incumbent)
Senior Adviser, Mizuho Marubeni Leasing Corporation
April 2022
(resigned in March 2024)(Concurrently held positions)
Outside Director, Concordia Financial Group, Ltd.

Has abundant experience and extensive knowledge in the areas offinance and taxation, etc.

Has abundant experience and extensive knowledge in the areas ofinternational financing and finance, etc.

April 1978
April 2007

MitsuruAkiyoshi
OutsideAudit &
Supervisory
Board Member

4 years
and 9months0

Independent

April 2009
June 2010
April 2012
April 2014
April 2018
June 2018
April 2019

Joined Tokyo Broadcasting System, Inc. (currently Tokyo
Broadcasting System Television, Inc.)
Part-time Lecturer, Faculty of Education, Chiba University
Member of the Council for Regulatory Reform (PMO)
Member of the Ministry of Economy, Trade and Industry’s
Advisory Committee for Natural Resources and Energy(incumbent)
Member of the Education Rebuilding Council (PMO)
February 2008
Member of the Ministry of Land, Infrastructure, Transport
March 2009
and Tourism’s Council for Transport Policy
April 2013
Visiting Professor, Chiba University (incumbent)
January 2016
Policy advisor for the Japan Coast Guard (incumbent)
November 2017 Member of the Ministry of Health, Labour and Welfare’s
Medical Ethics Council (incumbent)
Member of the Ministry of Education, Culture, Sports,
February 2019
Science and Technology’s Central Council of Education
June 2019
Audit & Supervisory Board Member, INPEX Corporation(incumbent)
November 2022 Member, Advisory Committee on Corporate Sound Water
Cycle Efforts, Prime Minister’s Office of Japan (incumbent)(Concurrently held position)
Outside Director, Central Japan Railway Company

Has abundant experience and extensive knowledge in the areas offinance and management, etc.

April 1987

April 2001
January 2007
July 2007

HirokoKiba
OutsideIndependent

Audit &
Supervisory
Board Member

4 years
and 9months

0

100%

100%

(16/16)(17/17)

Has a wide and diverse range ofknowledge gained as a member of the Advisory Committee
for Natural Resources and Energy and the Council for Transport Policy, as well as abundant
experience and knowledge as afreelance newscaster and university instructor.

Corporate
management/
Business
administration

GlobalFinance/
Legal/Risk
Technology/
Sustainability
Accounting management
DX

EnergyHR
Sales/
development/
MarketingDiversity

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

088

Corporate GovernanceReason for the selection of each skill matrix item
Skill item
Corporate management/
Business administration

GlobalFinance/Accounting

Legal/Risk management

Sustainability

Technology/DX

EnergyReason for selection
Under the complex management environment surrounding energy businesses,
broad knowledge and experience in general management and organizational
operation are required in order to formulate and implement medium- to longterm management strategies and management plans based on the Company’s
management philosophy, and supervise effectiveness thereof.
Knowledge and experience in geopolitics, policies, etc. are required in order toadequately carry out global businesses developed by the Company, and exercise appropriate supervision thereof.
Knowledge and experience in finance, accounting and tax affairs are required inorder to plan and implement strategies for the achievement of targets, such as
financial indicators and effectiveness indicators, called for in the Company’s medium-term business plan, and exercise appropriate supervision thereof.
Knowledge and experience in legal affairs, compliance, corporate government,risk management, etc. are required in order to implement appropriate risk management including observance of domestic and overseas laws and regulations,etc. related to the Company’s management and businesses, and exercise supervision thereof.
Knowledge and experience in health, safety and environment (HSE) and sustainability management are required in the promotion of actions on various issues
through the Company’s businesses and value chain as well as the supervision ofprogress of these actions in accordance with the Sustainability Principles and
HSE Policy.
Technical insight on the overall E&P businesses, and broad knowledge and experience in development and innovation of diverse energies and decarbonization solutions utilizing digital and expertise are required in order to plan andimplement strategies for technologies and DX, and exercise appropriate supervision thereof, contributing to the realization of a stable energy supply and decarbonization of business.
Broad knowledge and experience in not only the Company’s core businesses but
also commercialization, development, production and operation of diverse energies including renewable energy and hydrogen and ammonia are required inorder to plan and implement energy business strategies aimed at the realizationof a net-zero society in 2050, and exercise appropriate supervision thereof.

Sales/Marketing

Knowledge and experience in marketing and sales of diverse energies are required in order to provide optimal products/services and added value to all customers in Japan and overseas, plan and implement marketing strategies
targeting new customers aimed at expanding customers, and exercise appropriate supervision thereof.

HR development/Diversity

Based on the belief that diversification of human resources and cultivation ofhuman resources with whom values can be shared are important to sustainably
promote responsible management as a global company, diverse knowledge andexperience in the fields of human resources, education, promotion of empowerment of women, etc. are required in order to plan and implement strategies related to human resources development and diversity, and exercise appropriate
supervision thereof.

Executive Officers (As of April 1, 2024)
Name

Position

Title

Takayuki Ueda

President & CEO

Kenji Kawano

Senior Executive Vice
President

Senior Vice President, Renewable Energy, Strategic Projects Office, Compliance, Headof Overseas Projects

Hiroshi Fujii

Senior Executive Vice
President

Senior Vice President, Abu Dhabi Projects

Hitoshi Okawa

Senior Managing Executive
Officer

Senior Vice President, General Administration and Senior Vice President, Oceania
Projects

Daisuke Yamada

Senior Managing Executive
Officer

Senior Vice President, Finance & Accounting

Toshiaki Takimoto

Senior Managing Executive
Officer

Senior Vice President, Corporate Strategy & Planning, Legal Affairs, Head of Net ZeroBusiness

Yuzo Sengoku
Yosuke HappoManaging Executive Officer

Senior Vice President, New Ventures & Global Exploration

Managing Executive Officer

Senior Vice President, Logistics & IMT

Hideki KurimuraManaging Executive Officer

Senior Vice President, Technical Headquarters, and Senior Vice President, Innovation,
HSE

Hiromi Sugiyama
Hiroshi Kato
Akihiro Watanabe
Masaru Miyanaga
Munehiro Hosono

Managing Executive Officer

Senior Vice President, Domestic Exploration & Production

Managing Executive Officer

Senior Vice President, Global Energy Marketing

Managing Executive Officer

Senior Vice President, Asia Projects

Managing Executive Officer

Senior Vice President, Domestic Energy Supply & Marketing

Executive Officer

Senior Vice President, Europe & Middle East Projects

Yukiyo Ikeda

Executive Officer

Vice President, Europe & Middle East Projects
Managing Director, INPEX Idemitsu Norge AS (Oslo)

Shinichi Takada

Executive Officer

Vice President, Oceania Projects, Senior Vice President Development Director, INPEX
Holdings Australia Pty Ltd (Perth)

Shoichi Kaganoi
Tetsuhiro
Murayama
Wataru Nojiri

Executive Officer

Senior Vice President, Hydrogen & CCUS Development

Executive Officer

Vice President, Oceania Projects, President Director Australia Director, INPEX
Holdings Australia Pty Ltd (Perth)Executive Officer

Vice President, Domestic Energy Supply & Marketing

Kei Fukui

Executive Officer

Vice President, General Administration General Manager, General Administration
Unit, General Administration Division

Koichi Okamoto

Executive Officer

Vice President, Global Energy Marketing

Isao Takahashi

Executive Officer

Vice President, Technical Headquarters and Vice President, Innovation General
Manager, I-RHEX Unit, Innovation Division

Kenji Hasegawa

Executive Officer

Vice President, Asia Projects President Director Indonesia, Director, INPEX Masela,
Ltd. (Jakarta)

Koji Ochiai

Executive Officer

Vice President, Europe & Middle East Projects, Deputy Managing Director, INPEX
Idemitsu Norge AS (Oslo)

Yoshiro Konda

Executive Officer

Vice President, Renewable Energy, Managing Director, INPEX Europe Ltd. (London)

Shinichi Ogawa

Executive Officer

Vice President, General Administration General, Manager, Human Resources Unit,
General Administration Division

Shigeru Tode
Shinya Tauchi

Executive Officer

Vice President, Innovation, General Manager, New Venture Unit, Innovation Division

Executive Officer

Vice President, Europe & Middle East Projects, Director, INPEX South Iraq, Ltd. (Dubai)

Hirohide Yabuki

Executive Officer

Vice President, Abu Dhabi Projects, General Manager, Commercial Coordination Unit,
Abu Dhabi Projects Division

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

089

Corporate GovernanceMonitoring of Management by Outside Directors and Audit &Supervisory Board Members
Outside Directors
Regarding the appointment of outside directors, we believe that it is important to comprehensively consider a variety of factors. These factors include the validity of business decisions and consideration of their effectiveness, expertise and objectiveness in the oversightfunction in addition to the perspective of independence. As corporate managers, academics or other specialists, the Company’s five outside directors possess broad knowledge and many years of experience in such fields as resource/energy industry, finance andlegal matters.
INPEX considers it important for all its directors to carry out their management duties
while maintaining a high level of awareness at all times on matters including the obligation
to prohibit competition under the Companies Act, the appropriate handling of transactions with conflicts of interest and the prevention of information leakage. The Company
has therefore obtained pledges confirming these points from all directors including theoutside director referred to above.

Outside Audit & Supervisory Board Members
When appointing outside Audit & Supervisory Board members, we believe that it is important
to comprehensively consider factors such as independence, efficacy in the oversight function
and professionalism. Four of the Company’s five Audit & Supervisory Board members areappointed from external sources. Audit & Supervisory Board members possess a rich knowledge and experience in the Company’s business as well as in such fields as finance, legal affairs and management, which they use when performing auditing activities for the Company.

Independence of Outside Directors and Outside Audit & Supervisory Board Members
The Company has reported all outside directors and outside Audit & Supervisory Board
members as independent directors as defined by Tokyo Stock Exchange, Inc. As a part ofefforts to comply with the Corporate Governance Code, INPEX has formulated independence standards for outside directors and outside Audit & Supervisory Board members
taking into consideration the independence standards and qualifications for independent
directors issued by the Tokyo Stock Exchange. The Company determines the independence of outside directors, including major shareholders and business partners that do
not fall within the scope of these standards.

Composition of Directors
Inside (persons)Outside (persons)

16

16
4

12

16
4

12

16

15
4

12

4

16
5

16
5

15
5

15

14
5

5

15
6

14

13
6

5

14
6

12
6

12
5

5

10
5

11

11

11

11

10

9

9

9

8

8

8

7

7

5

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Independence Standards for Outside Directors and Outside Audit & Supervisory Board Members
The Company shall, based on the independence criteria set forth by the Tokyo Stock Exchange,
determine that an Outside Director or an Outside Audit & Supervisory Board Member is independent from the Company if he or she falls under none of the following items.
1 A major shareholder of the Company (who directly or indirectly holds 10% or more of the Company’s voting rights) or an executive thereof
2 A person whose major business partner is the Company (*1) or an executive thereof
3 A major business partner of the Company (*2) or an executive thereof
4 A legal professional, accountant, or consultant who receives money or other properties of morethan ¥10 million per year on average over the past three (3) years from the Company or its subsidiary, excluding compensation for Directors or Audit & Supervisory Board Members (if the person receiving such properties is an organization such as a legal entity or a partnership, a person
who belongs to such organization)
5	An accounting auditor of the Company or its subsidiary (if such accounting auditor is an accounting firm, a person who belongs to such accounting firm)
6 A person who receives donations or subsidies of more than ¥10 million per year on average overthe past three (3) years from the Company or its subsidiary (however, if the person receiving the
donation or subsidies is an organization such as a legal entity or a partnership, a director or otherofficer managing the business of the organization to which the amount of such donations or
subsidies exceeds the greater of ¥10 million per year or 30% of the total expenses per year ofsuch organization, on average over the past three (3) years)
7 A person who fell under any of items 1 through 6 above in the past three (3) years
8 A relative within the second degree of kinship of a person who falls under any of (a) through (d)below (excluding persons who are not material (*3))(a) A person who falls under any of items 1 through 7 above(b) An executive of a subsidiary of the Company

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

090

Corporate Governance(c) A non-executive Director or an accounting advisor of a subsidiary of the Company (limited tocases where said Outside Audit & Supervisory Board Member is to be designated as an Independent Audit & Supervisory Board Member)(d) A person who fell under item (b) or (c) above or an executive of the Company in the most recent three (3) years (including a non-executive Director, if said Outside Audit & Supervisory
Board Member is to be designated as an Independent Audit & Supervisory Board Member)
9 Other than each of the preceding items, a person who is substantially judged by the Company topossibly cause a conflict of interest with ordinary shareholders of the Company*1 “A person whose major business partner is the Company” refers to a business partner whose business relationship with
the Company may have an influence on decision-making of business, etc. of said business partner to the same extent
as said business partner’s parent company, subsidiary or affiliate. Specifically, this could be a so-called subcontractor
whose consolidated net sales from transactions with the Company account for a considerable part of the said subcontractor’s consolidated net sales, etc.
*2 “A major business partner of the Company” refers to a business partner whose business relationship with the Company
may have an influence on decision-making of business, etc. of the Company to the same extent as the Company’s parent company, subsidiary or affiliate. Specifically, this could be the counterparty in transactions with the Company whose
consolidated net sales from the transactions account for a considerable part of the Company’s consolidated net sales,or a supplier who provides merchandise and services which are essential to the business activities of the Company.
*3 Specifically, a “material” person is assumed to be an officer, general manager or equivalent of each company/business
partner in case of the persons referred to in items 1 through 3, and a certified public accountant who belongs to eachaccounting firm or a lawyer who belongs to each law firm (including so-called associates) in case of the persons who
belong to organizations referred to in items 4 and 5.

Director Compensation
Compensation for directors (excluding outside directors) consists of basic compensation,
which is paid according to the duties of each director; bonuses, which serve as a shortterm incentive; and stock-based remuneration, which gives a medium- to long-term incentive. Compensation for outside directors is limited to basic compensation only from theperspective of independence of their duties.
Bonuses as a short-term incentive is linked to the Company’s profit attributable to owners of parent (hereinafter “net income”) and cash flows from operating activities before
exploration, which are our major financial indices, as well as a safety index (zero major accidents) that serves as a non-financial index. The amount of compensation is calculated
based on the evaluation weights in the table below according to the degree of achievement of these targets, and the final amount of compensation fluctuates within the range of
0% to 200%.
KPIs used to calculate bonuses for directors (excluding outside directors)
Bonus KPI

Support System for Outside Directors and Outside Audit & Supervisory Board Members
To support outside directors in their exercise of supervision over management, the Company ensures that they receive materials to be used at Board of Directors meetings at least
three days in advance as a rule, and that they are briefed on important matters on theagenda before meetings.
The Company has also assigned four dedicated audit assistants to the Audit & Supervisory Board Members’ Office, an organization that supports Audit & Supervisory Board
members, including outside members. These assistants perform their duties as instructedby Audit & Supervisory Board members.
Moreover, the Company regularly organizes meetings of outside directors, Audit & Supervisory Board members and representative directors several times a year as opportunities for them to broadly exchange opinions on important management topics.

Evaluation weight

Net income

45%

Financial indices

Cash flows from operating activities before
exploration45%

Non-financial index

Safety index (zero major accidents)

10%

Stock-based remuneration as a medium- to long-term incentive is paid to directors (excluding outside directors and non-residents of Japan) and executive officers (excluding
non-residents of Japan) (hereinafter collectively the “eligible directors and officers”). This
remuneration system is called the Board Incentive Plan Trust, and it combines performance-based elements aimed at raising the awareness among the eligible directors andofficers of their contribution to the Company’s medium- to long-term business performance and enhancement of corporate value, and fixed elements aimed at strengthening
the awareness among the eligible directors and officers of sharing interests with shareholders through the ownership of the Company’s shares. The performance-based portionof the stock-based remuneration is linked to the Company’s key financial indices set forthin the Medium-term Business Plan, namely, net income, cash flows from operating activities before exploration, ROE and total payout ratio, as well as to the production cost per
barrel and net carbon intensity, which are our major non-financial indices. The amount ofcompensation is calculated based on the evaluation weights in the table below according
to the degree of achievement of these targets, and the final amount of compensation

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

091

Corporate Governancefluctuates within the range of 0% to 200%. In the event that any of the eligible directors andofficers commit a significantly improper or violating act, the Company may cancel or forfeit
their right to receive the Company’s shares or other forms of compensation under thesystem (malus) and demand the return of cash corresponding to the Company’s shares orother forms of compensation already delivered to them (clawback).
KPIs used to calculate performance-linked stock-based remuneration for directors(excluding outside directors) and executive officers
Stock-based remuneration KPINet income
Financial indicesNon-financial indices

Evaluation weight
30%

Cash flows from operating activities before
exploration

30%

ROE

10%

Total payout ratio

10%

Production cost per barrel

10%

Net carbon intensity

10%

Regarding the compensation for directors, the Nomination and Compensation Advisory
Committee deliberates on major matters in accordance with the policy for determining
the amount and calculation method of compensation, etc. for directors and the details ofcompensation, etc. for individual directors, and submits a report to the Board of Directors.
Based on the report from the Committee, the Board of Directors decides on the compensation for directors within the limits and terms approved at the general meeting of shareholders. The amount of compensation to be paid to each director by type is decided by
the Representative Director, President & CEO, who shall be entrusted to do so by a resolution of the Board of Directors, in accordance with the deliberation by the Nomination
and Compensation Advisory Committee, a majority of whose members are outside officers, including independent outside directors.
Considering the external environment, social and economic trends, and other factors
surrounding the Company, the Nomination and Compensation Advisory Committee will
carefully deliberate on the appropriateness of the target values and calculation method forcompensation and issue a report, based on which necessary adjustments may be made to
the amount of compensation for each director by a resolution of the Board of Directors.
The adequacy of compensation for directors is verified by the Nomination and Compensation Advisory Committee after an external compensation research organization examines and analyzes the level of compensation for each position in a peer group ofcompanies of the same size and similar industries.

The ratios of the basic compensation, bonuses and stock-based remuneration for insidedirectors are generally balanced to follow the principle that the higher the position held bya director is, the higher the weight of his or her performance-based compensation (bonuses and stock-based remuneration) is.
Compensation for Directors and Audit & Supervisory Board Members in FY2023
Total compensation by typeClassification

Total amountofcompensation
paid(millions of yen)(millions of yen)

Basiccompensation

Bonus

Stock-based
remuneration

Number of
eligible
directors andAudit &
Supervisory
Board
members(persons)

Directors(excluding outside
directors)

Audit & Supervisory
Board members(excluding outside
Audit & Supervisory
Board members)

Outside directors
and outside Audit &Supervisory Board
members

544

350

141

52

8

34

34

-

-

2

166

166

-

-

11

Notes:
1. The above table includes one Director and three Audit & Supervisory Board Members (including two Outside Audit & Supervisory Board Members) who retired at the conclusion of the 17th Ordinary General Meeting of Shareholders held on March 28,2023.
2. The basic compensation for directors was resolved to be an annual amount, including bonuses, of not more than 900 million yen(including an amount not more than 100 million yen for outside directors) at the 16th Ordinary General Meeting of Shareholders
held on March 25, 2022. The number of directors as of the date of this resolution was 12 (including five outside directors).
3. The basic compensation for Audit & Supervisory Board members was resolved to be an annual amount of not more than 140
million yen at the 16th Ordinary General Meeting of Shareholders held on March 25, 2022. The number of Audit & Supervisory
Board members as of the date of this resolution was five.
4. Bonuses and stock-based remuneration are regarded as performance-based compensation. Stock-based remuneration is also
regarded as non-monetary compensation.
5. At the 12th Ordinary General Meeting of Shareholders held on June 26, 2018, it was resolved that a stock-based remuneration
system be introduced for directors and executive officers (the BIP Trust). The amount of the stock-based remuneration presented
in the table represents the fees incurred regarding the stock-based points granted during the business year under review concerning the BIP Trust for directors. At the 16th Ordinary General Meeting of Shareholders held on March 25, 2022, the maximum
amount of money to be contributed per business year by the Company was revised to 434 million yen, and the maximum points
granted per business year to those eligible for the system was revised to 806,000 points (equivalent to 806,000 shares of theCompany). The number of directors (excluding outside directors and nonresidents of Japan) as of the date of this resolution wasseven.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

092

Corporate Governance

Policy Concerning Cross-shareholdings

Class A Stock

For the purpose of achieving sustainable growth and increasing corporate value over the
medium to long term, when it is deemed necessary to hold shares in corporations in orderto maintain good relationships, and to promote business smoothly and generate business
opportunities, the Company will hold shares in such corporations to the extent necessary.
Each year, the Company will, at the Board of Directors meeting, assess whether or not
to hold each individual cross-shareholding, specifically examining whether the purpose isappropriate and whether the benefits and risks from each holding accord with the Company’s cost of capital. As a result of the assessment, if it is determined that the necessity of
any cross-shareholdings has decreased, such cross-shareholdings will be reduced.
With respect to the voting rights as to the cross-shareholdings, the Company will determine the matters to be confirmed for each proposal to shareholders, such as appropriationof surplus, election and compensation of officers and company reorganization. Decisions
whether or not to approve proposals will be made after full consideration of the appropriateness of the proposals and whether they will contribute to the purpose of the cross-shareholdings and the sustainable growth and increased corporate value over the medium tolong term of the companies invested in.

According to the stipulations of the Articles of Incorporation, INPEX issues a Class A Stockto the Minister of Economy, Trade and Industry. Unless otherwise provided by laws or ordinances, the Class A Stock does not possess voting rights at shareholders’ meetings. However, it is possible for the holder of the Class A Stock to exercise veto rights for certain
major corporate decisions. We believe the holding of Class A Stock by the Minister of
Economy, Trade and Industry will help prevent any incidence of unusual management, allow INPEX to stably supply energy as a core company for Japan’s oil & gas E&P and ensurethat the Company does not incur any negative impact from a speculative acquisition or an
attempt at management control through foreign capital. On this basis, INPEX’s role is assured. Furthermore, we expect positive results in terms of external negotiation and credits
as a national flagship company efficiently contributing to the stable supply of energy inJapan.

Cross-shareholdings (excluding deemed holdings of equity securities)
Shares other than unlisted
sharesEnd of fiscal
2020

End of fiscal
2021

End of fiscal
2022

End of fiscal
2023

15

10

8

5

Total carrying amount onbalance sheet

23,368 million
JPY

22,866 million
JPY

11,953 million
JPY

11,928 million
JPY

Unlisted shares

End of fiscal
2020

End of fiscal
2021

End of fiscal
2022

End of fiscal
2023

Number of issues

31

31

31

34

14,980 million
JPY

11,136 million
JPY

10,938 million
JPY

11,823 million
JPY

Number of issues

Total carrying amount onbalance sheet

INPEX CORPORATION Integrated Report 2023

Financial and
Other
Information

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

093

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

094

11-Year Financial Information INPEX CORPORATION and Subsidiaries
JGAAP
Millions of yen

2014/3

2015/3

2016/32017/3

2018/3

2019/3

2019/121

2020/122021/122022/123¥2,324,660

Results of operations
Net sales¥1,334,625¥1,171,226¥1,009,564¥874,423¥933,701¥971,388¥1,000,005¥771,046¥1,244,369

Cost of sales

490,416

525,443526,757

453,846

498,039

413,300

424,702439,852

568,921

943,414Gross profit

844,209645,782

482,806

420,576435,662

558,088575,303

331,194

675,448

1,381,245

Operating income

733,610534,886

390,139

336,452

357,363474,281498,641

248,471590,657

1,246,408

Income before income taxes

750,077

540,022

328,887

327,525

307,299

494,042510,292

67,394643,457

1,416,196¥183,690¥77,820¥16,777¥46,168¥40,362¥96,106¥123,550¥(111,699 )¥223,048¥461,069

Total assets¥4,038,139¥4,499,153¥4,369,841¥4,312,174¥4,252,386¥4,793,545¥4,849,995¥4,634,518¥5,158,196¥6,259,853

Total liabilities

1,042,102

1,210,450

1,191,038

1,104,631

1,093,517

1,535,961

1,552,818

1,633,178

1,811,786

2,237,483¥2,996,036¥3,288,703¥3,178,803¥3,207,542¥3,158,868¥3,257,584¥3,297,176¥3,001,339¥3,346,409¥4,022,370

Cash flows from operating activities¥213,513¥216,749¥183,707¥275,810¥278,539¥238,566¥274,730¥292,915¥445,457¥751,284

Cash flows from investing activities(395,555 )(81,086 )(543,534 )

53,483(351,908 )(682,005 )(288,740 )(417,189 )(130,727 )(525,574 )Cash flows from financing activities

48,961(4,177 )

156,726(65,428 )

34,742405,184(48,615 )

126,747(315,215 )(241,928 )¥117,530¥260,978¥53,813¥316,790¥276,079¥239,652¥173,774¥172,405¥191,213¥211,656¥1,911.25¥2,099.95¥2,008.34¥2,015.38¥1,997.24¥2,058.95¥2,082.43¥1,874.08¥2,253.17¥2,879.68

18.00

18.00

18.00

18.00

18.00

24.00

30.00

24.00

48.00

62.00

¥125.78¥53.29¥11.49¥31.61¥27.64¥65.81¥84.61¥(76.50 )¥153.87¥337.37

Equity ratio (based on institutional accounting
practices) (%)

69.1

68.2

67.1

68.3

68.6

62.7

62.7

59.0

60.6

60.1

Net D/E ratio (based on institutional accounting
practices) (%)(0.26 )

(0.15 )

(0.08 )

0.01

0.15

0.30

0.31

0.38

0.31

0.26

—

—

—

—

—

—

—

0.76

0.65

0.46

Net income (loss) attributable to owners of parent
Financial position

Net assets
Cash flows

Cash and cash equivalents at end of the period
Per share data2
Net assets per share (Yen)
Cash dividends per share (Yen)
Earnings (loss) per share (EPS) (Yen)
Financial indicators

Net D/E ratio (including Ichthys downstream IJV) (%)

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

095

11-Year Financial Information

IFRS

The translation of yen amounts into U.S. dollar amounts is included solely for convenience, as a matter of arithmetic
computation only, at ¥141.82=US$1.00, the approximate exchange rate in effect as of December 31, 2023.
Millions of yen

Millions of yen

Thousands of U.S. dollars

2022/122023/122023/12$15,262,417

Results of operations
Revenue¥2,316,086¥2,164,516

Cost of sales

818,130

848,080

5,979,974

Gross profit

1,497,956

1,316,435

9,282,435

Operating income

1,503,667

1,114,189

7,856,360

Profit before tax

1,445,382

1,253,384

8,837,850¥498,452¥321,708$2,268,424¥6,448,414¥6,739,476$47,521,336

2,379,854

2,240,442

15,797,785¥4,068,560¥4,499,033$31,723,543

Cash flows from operating activities¥782,274¥788,130$5,557,255

Cash flows from investing activities(535,123 )(320,116 )(2,257,199 )Profit attributable to owners of parent
Financial position
Total assets
Total liabilities
Total equity
Cash flows

Cash flows from financing activities
Cash and cash equivalents at end of the period(246,597 )(487,272 )(3,435,848 )¥208,238¥201,149$1,418,340¥2,915.31¥3,345.22$23.59

Per share data
Equity attributable to owners of parent per share (Yen)4
Cash dividends per share (Yen)

62.00

74.00

0.52

Basic earnings per share (Yen)5¥364.73¥248.55$1.75

Notes:
1. Effective from the year ended December 31, 2019, the Company changed its
consolidated fiscal year-end from March 31 to December 31. As a result of thischange, the year ended December 31, 2019 was a period of nine months from
April 1 to December 31, 2019.
2. The amounts for the years ended March 31, 2014 are retrospectively adjusted fora stock split at a ratio of 1:400 of common stock on October 1, 2013.
3. The Japanese GAAP figures for the year ended December 31, 2022 were adjusted retrospectively according to the changes in accounting policies, and thefigures after retrospective application are presented.
4. Equity attributable to owners of parent per share = (Year-end total assets−Yearend non-controlling interest−Year-end total equity related to Class A stock) /(Year-end number of common shares issued−Year-end number of treasury shares)
5. Basic earnings per share (loss) = Profit attributable to owners of parent (loss) /Average number of shares

Financial indicators
Ratio of equity attributable to owners of parent to total
assets (%)6

59.0

62.5

62.5

6. Ratio of equity attributable to owners of parent to total assets = Equity attributable to owners of parent / Total assets

Net D/E ratio (based on institutional accounting
practices) (%)7

0.28

0.20

0.20

7. Net D/E ratio (based on institutional accounting practices) = (Interest-bearing
debts - Cash and cash equivalents) / Total equity attributable to owners of parent

Net D/E ratio (including Ichthys downstream IJV) (%)8

0.46

0.31

0.31

8. Net D/E ratio (including Ichthys downstream IJV) includes Ichthys downstream
IJV, a jointly controlled entity (Ichthys LNG Pty Ltd), and differs from institutional
accounting basis. Data for and after FY2020/12 are disclosed.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

096

Management’s Analysis of Financial Condition, Financial Results and Cash FlowsThe following is an overview of the Group’s financial condition, financial results, and cash
flows (hereinafter “financial results and other”) in the year ended December 31, 2023, andthe content of the recognition, analysis, and discussion of the Group’s financial results andother from the perspective of management.
In addition, from the year ended December 31, 2023, the Group has adopted IFRS insteadof accounting principles generally accepted in Japan (Japanese GAAP). The figures for theyear ended December 31, 2022, have been reclassified to IFRS for comparative analysis.
Forward-looking statements contained in this report are the judgement as of December
31, 2023.

Overview and Analysis of Financial Results
Millions of yen

Revenue(Of which, revenue from crude oil)(Of which, revenue from natural gas)
Operating income
Profit before tax
Profit attributable to owners of parent

2022/122023/12¥2,316,086
1,772,080
523,427
1,503,667
1,445,382
498,452¥2,164,516
1,607,968
535,834
1,114,189
1,253,384
321,708%
ChangeChange¥(151,569 )(164,111 )12,406(389,477 )(191,998 )(176,744 )(6.5 ) %(9.3 )
2.4(25.9 )
(13.3 )
(35.5 )

ChangeChangeMillions of yen

Sales volume of crude oil (thousand bbl)
Average sales price of crude oil(U.S. dollar/bbl)

Sales volume of natural gas  (million cf)
Sales volume of overseas natural gas
(million cf)

Unit sales price of overseas natural gas
(U.S. dollar/thousand cf)

Sales volume of domestic natural gas
(million m3)

Average unit sales price of domestic
natural gas (Yen/m3)
Average exchange rate on revenue
(Yen/U.S. dollar)%

2022/122023/12138,118

138,024

(94 )

97.64

82.83

(14.81 )(15.2 )

442,389

479,81437,4258.5

351,122387,974

36,852

10.5

6.87

5.62

(1.25 )

(18.2 )

2,436

2,452

16

0.6

81.98

90.08

8.10

9.9

131.37140.539.16

7.0(0.1 ) %Notes:
1. Sales volume of natural gas, sales volume of overseas natural gas and sales volume of domestic natural gas exclude LPG sales volume.
2. Unit sales price of overseas natural gas and average unit sales price of domestic natural gas exclude LPG.

During the year ended December 31, 2023, the Japanese economy has recovered moderatelyfrom the impact of the novel coronavirus (COVID-19). With improvements in the employment andincome environments, further recovery is expected to continue. However, the downturn of overseas economies, such as the impact of global monetary tightening and concerns about the futureof China’s economy, creates a risk of downward pressure on Japan’s economy. In addition, there
are continuing concerns about the impacts of rising prices, the Russia-Ukraine situation and theIsrael-Palestine conflict, and fluctuations in financial and capital markets.
Of the international crude oil price indices, which significantly influence the financial performance of the Group, Brent crude (on a near-term closing price basis), considered a benchmark
index for crude oil, started the current fiscal year at US$82.10 per barrel, and in January, crude oil
prices continued to rise against the backdrop of expectations for recovery in crude oil demand
due to the end of China’s zero-COVID policy, and other factors. Thereafter, crude oil prices generally remained at around US$70 to US$75 per barrel in early spring due to concerns that financial
difficulties of several financial institutions in the U.S. and Europe would exert downward pressure
on the global economy, but crude oil prices trended upward and temporarily reached a high ofover US$95 per barrel in late September. In October, with the Israel-Palestine conflict, there wasan unstable period of temporary volatile fluctuation in crude oil prices. As a result of the decisionat the December OPEC+ meeting to postpone the reduction of crude oil production targets(strengthening production cuts) by oil-producing countries, coupled with increased market uncertainty regarding these cuts, crude oil prices remained weak, ending the fiscal year at US$77.04.
The Group’s average crude oil sales price for the year ended December 31, 2023 reflected thisshift and fell to US$82.83 per barrel, down US$14.81 from the previous fiscal year.
The foreign exchange market, another important factor that affects the business of the Group,
began to trade at ¥131 level against the U.S. dollar. During the first half of the year, there washeightened speculation about policy adjustments by the Bank of Japan, leading to a narrowing of
the Japan-U.S. interest rate gap, temporarily strengthening the yen to the ¥127 level. However,the Bank of Japan’s decision to maintain its policy interest rate coupled with favorable U.S. economic indicators resulted in increased interest in the dollar and a consistent depreciation of theyen. During the second half of the year, concerns about a slowdown in inflation in the U.S. andspeculation about corrective measures in the Bank of Japan’s monetary policy led to a temporary
weakening of the dollar to the ¥138 level, but due to robust economic indicators in the U.S. andprolonged monetary easing by the Bank of Japan, the yen depreciated again, rising to the upper¥151 level in November. Toward the end of the fiscal year, the yen appreciated slightly due to hints
at rate cuts by the U.S. Federal Reserve Board and downward revisions of U.S. economic indicators, resulting in TTM closing at ¥141.82 against the U.S. dollar, ¥9.12 less than that of the end of
the previous fiscal year. Reflecting these situations, the average exchange rate of the Japanese
yen against the U.S. dollar on consolidated revenue depreciated by ¥9.16 to ¥140.53 per U.S.
dollar from the previous fiscal year.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

097

Management’s Analysis of Financial Condition, Results of Operations and Cash Flows

Under this business environment, consolidated revenue for the year ended December 31, 2023
decreased by ¥151.5 billion, or 6.5%, to ¥2,164.5 billion from the previous fiscal year due to a decrease in sales price of crude oil. Revenue from crude oil decreased by ¥164.1 billion, or 9.3%, to¥1,607.9 billion, and revenue from natural gas increased by ¥12.4 billion, or 2.4%, to ¥535.8 billion.
Sales volume of crude oil decreased by 94 thousand barrels, or 0.1%, to 138,024 thousand barrels,
and sales volume of natural gas increased by 37,425 million cf, or 8.5%, to 479,814 million cf. Sales
volume of overseas natural gas increased by 36,852 million cf, or 10.5%, to 387,974 million cf, andsales volume of domestic natural gas increased by 16 million m3, or 0.6%, to 2,452 million m3(91,502 million cf). The average sales price of overseas crude oil decreased by US$14.81, or 15.2%,
to US$82.83 per barrel. The average sales price of overseas natural gas decreased by US$1.25, or
18.2%, to US$5.62 per thousand cf, and the average sales price of domestic natural gas increasedby ¥8.10, or 9.9%, to ¥90.08 per m3. The average exchange rate of the Japanese yen against the
U.S. dollar on consolidated revenue depreciated by ¥9.16, or 7.0%, to ¥140.53 per U.S. dollar.
The decrease of ¥151.5 billion in revenue was mainly derived from the following factors: regarding revenue from crude oil and natural gas, an increase in sales volume contributing ¥36.5 billion
to the increase, a decrease in unit sales price pushing sales down of ¥316.7 billion, the depreciation of the Japanese yen against the U.S. dollar contributing ¥128.4 billion to the increase, and anincrease in revenue excluding crude oil and natural gas of ¥0.1 billion to the increase.
Meanwhile, cost of sales increased by ¥29.9 billion, or 3.7%, to ¥848.0 billion. Exploration expenses increased by ¥13.1 billion, or 103.9%, to ¥25.9 billion. Selling, general and administrative
expenses increased by ¥3.7 billion, or 4.1%, to ¥95.7 billion. Other operating income decreasedby ¥70.8 billion, or 73.9%, to ¥25.0 billion, while other operating expenses decreased by ¥27.7
billion, or 18.3%, to ¥124.0 billion, and share of profit (loss) of investments accounted for using theequity method decreased by ¥147.8 billion, or 88.9%, to ¥18.3 billion. As a result, operating income decreased by ¥389.4 billion, or 25.9%, to ¥1,114.1 billion.
Finance income increased by ¥143.4 billion, or 194.4%, to ¥217.3 billion. Finance costs decreased by ¥53.9 billion, or 40.9%, to ¥78.1 billion. As a result, profit before tax decreased by¥191.9 billion, or 13.3%, to ¥1,253.3 billion.
Income tax expense decreased by ¥38.6 billion, or 4.0%, to ¥920.8 billion, and profit attributable to non-controlling interests was ¥10.8 billion, compared with loss attributable to non-controlling interests of ¥12.4 billion in the previous fiscal year. As a result of the above effects, profit
attributable to owners of parent decreased by ¥176.7 billion, or 35.5%, to ¥321.7 billion.

Financial results by segment are as follows:
Oil & Gas Japan
Revenue increased by ¥18.2 billion, or 8.5%, to ¥232.8 billion due to an increase in sales
price of natural gas. However, profit attributable to owners of parent decreased by ¥3.1
billion, or 7.0%, to ¥42.0 billion mainly due to increases in cost of sales and exploration
expenses.
Oil & Gas Overseas—Ichthys Project
Revenue increased by ¥4.6 billion, or 1.3%, to ¥373.1 billion due to an increase in sales
volume. Profit attributable to owners of parent increased by ¥21.5 billion, or 7.5%, to ¥309.8
billion.
Oil & Gas Overseas—Other Projects
Revenue decreased by ¥184.4 billion, or 10.8%, to ¥1,528.2 billion due to a decrease in sales
price of crude oil. Profit attributable to owners of parent decreased by ¥117.0 billion, or
99.4%, to ¥0.7 billion.

Overview and Analysis of Financial Condition
Total assets as of December 31, 2023 increased by ¥291.0 billion to ¥6,739.4 billion from December 31, 2022. Assets increased by ¥79.8 billion to ¥838.4 billion, mainly due to an increase in otherfinancial assets. Non-current assets increased by ¥211.2 billion to ¥5,901.0 billion, mainly due toincreases in investments accounted for using the equity method and oil and gas assets.
Meanwhile, total liabilities decreased by ¥139.4 billion to ¥2,240.4 billion from December 31,
2022. Current liabilities increased by ¥31.4 billion to ¥572.2 billion and non-current liabilities decreased by ¥170.8 billion to ¥1,668.2 billion.
Total equity increased by ¥430.4 billion to ¥4,499.0 billion from December 31, 2022. Total equity
attributable to owners of parent increased by ¥401.7 billion to ¥4,209.1 billion, while non-controlling interests increased by ¥28.7 billion to ¥289.9 billion.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

098

Management’s Analysis of Financial Condition, Results of Operations and Cash Flows

Overview and Analysis of Cash Flows and Information on Capital
Sources and Funding Liquidity
Overview and analysis of cash flows
The Group’s cash and cash equivalents (hereinafter “cash”) amounted to ¥201.1 billion as of December 31, 2023, reflecting a net decrease of ¥19.2 billion from ¥208.2 billion as of December 31,
2022, and the effect of exchange rate changes of ¥12.1 billion.
Cash flows from operating, investing, and financing activities for the year ended December 31,
2023 and their factors are as follows.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥788.1 billion, up ¥5.8 billion fromthe previous fiscal year. This was mainly due to a decrease in trade and other receivables
and a decrease in share of profit of investments accounted for using the equity method,which is a non-cash item, despite a decrease in profit before tax due to a decline in crude
oil sales prices and an increase in finance income, which is a non-cash item.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥320.1 billion, down ¥215.0 billion fromthe previous fiscal year. This was mainly due to an increase in proceeds from sale and redemption of investments and a decrease in long-term loans made, despite an increase inpayments for purchases of investments.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥487.2 billion, up ¥240.6 billion from theprevious fiscal year. This was mainly due to an increase in repayments of long-termborrowings.

Information on capital sources and funding liquidity
Acquisition, exploration and development projects of oil, natural gas, renewable energy and others, as well as the construction of natural gas infrastructure, require significant funding. The Grouprelies on cash flow on hand derived from internal reserves, together with external sources, toprocure funds. The Group’s basic policy is to utilize cash flow on hand and external equity financing to fund exploration projects and to utilize cash flow on hand, bank loans and issuance ofbonds to fund the acquisition and development projects as well as the construction of the natural
gas infrastructure. The acquisition and development projects of oil and natural gas are primarily
funded from long-term loans that the Group has secured from Japan Bank for International Cooperation, Japanese commercial banks and others. Japan Organization for Metals and Energy Security has provided guarantees for the principal on certain outstanding amounts of the Group’s
long-term loans. Development Bank of Japan Inc, Japanese commercial banks and others haveprovided long-term loans for the construction of domestic gas infrastructure. For the acquisitionand development projects of renewable energy, the Group procures funds through project financing and green financing. The Ichthys downstream entity (Ichthys LNG Pty Ltd, which is a joint
venture), as the borrower, has utilized external loans from export credit agencies and commercial
banks for project financing and others.
During the year ended December 31, 2023, the Group carried out funding aimed at development expenditures, etc., while also working on reducing interest-bearing liabilities in line with its
medium-term business plan. Additionally, the Group received financing from Japan Organization
for Metals and Energy Security for development expenditures, exploration expenditures, etc.
The Group’s basic liquidity policy is to maintain sufficient cash flow on hand to provide forsteep falls in oil and gas prices. In addition, the Group has concluded commitment line contracts
with multiple financial institutions to secure the line of credit.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

099

INPEX Green Finance Annual Report (Period: January 2023–December 2023)
30 June 2024 INPEX CORPORATION

1. Annual report summary

3. Project eligibility assessment results

INPEX has issued its inaugural INPEX Green Bond on 15 October 2021 and concluded the loan agreement for the first INPEX Green Loan on March 31, 2023 (Hereinafter, green bonds and green loans arecollectively referred to as “INPEX Green Finance”). It is designed to promote the reduction of CO2
based on the “Business Development Strategy—Towards a Net Zero Carbon Society by 2050,” which
formulated a long-term management policy envisioning a net zero carbon society by 2050.
All the funds from the INPEX Green Finance have been allocated to the following green projects
that were verified against the Climate Bond Standard version 3.0 (CBSv3.0) and other technical standards set by the Climate Bond Initiative (CBI) by December 31, 2023.
All projects are under construction or in operation as originally planned or scheduled as of December 31, 2023 and have achieved environmental benefits (CO2 reductions).

INPEX has confirmed the continued compliance of the INPEX Green Projects listed in Table-1, 2
against CBSv3.0 and the relevant technical standards (see section 1. (2) by the INPEX Renewable Energy Division, the INPEX Corporate Strategy & Planning Division and the INPEX Finance & Accounting Division. The INPEX Green Projects that were eligible for fund allocation have been alreadyqualified by a CBI approved verifier in a pre-funding verification of the Green Finance.

Renewable energy: Business related to the development, construction, operation and refurbishment of renewable energy of wind and geothermal(2) Verification criteria
Common:CBSv3.0 and the following technical standard
The Marine Renewable Energy Sector Eligibility
Criteria of the Climate Bonds Standard (July 2020)• 
Geothermal Energy and the Climate bond Standard(version1.0)•

Green Bond Principles 2021, ICMA (GBP)Green Bond Guidelines 2020, Ministry of the Environment(GBGL)

Amount of funds allocated(Refinancing amount)

10.00 billion JPY(5.24 billion JPY)

Amount of funds
unallocated

0 JPY

Note: Unallocated amount (0.05 billion JPY) of funds as of December 2022 has been fully allocated in August 2023 in accordance with the proceeds management procedures.

1

Project category

INPEX Green Loan eligible projects

Environmental
improvement effects(CO2 Reductions)415MW(68.7 MW)329,518 t-CO *2 1

Project category

INPEX Green Loan eligible projects

Facility capacity(for INPEX share)

860.5MW(174.2 MW)

Environmental
improvement effects(CO2 Reductions)

105,604 t-CO *2 2

All projects are under construction or in operation as planned or scheduled as of December 31, 2023.

Amount of funds allocated(Refinancing amount)

250 million USD(250 million USD)

*1 : Estimated CO2 reductions based on actual power generation from geothermal power
CO2 Reduction = Actual power generation (MWh) x CO2 Emission factor (t-CO2 /MWh)
CO2 Emission factor is calculated from the difference between the average CO2 emission factor of the country where
the project is operated and the CO2 emission factor of the project.
*2 : Estimated CO2 reductions based on actual power generation from wind power
CO2 Reduction = Actual power generation (MWh) x CO2 Emission factor (t-CO2 /MWh)
CO2 Emission factor is calculated based on the average CO2 emission factor of the country where the project is
operated.

5. Post-funding verification

Table-2: INPEX Green Loan fund allocation (as of December 2023)
No.

INPEX Green Bond eligible projects

Facility capacity(for INPEX share)

Calculation method for environmental benefit

Table-1: INPEX Green Bond fund allocation (as of December 2023)

INPEX Green Bond eligible projects

No.

1

INPEX Green Loan #1:

2. Allocation status
Project category

1

Project category

Table-4: INPEX Green Loan environmental improvement benefits (Period: April 2023–December 2023)

INPEX Green Bond #1:

Green Loan Principles 2021, LMA, APLMA, LSTA (GLP)Green Loan Guidelines 2022, Ministry of the Environment(GLGL)

1

Table-3: INPEX Green Bond environmental improvement benefits (Period: January 2023–December 2023)
No.

(1) Green projectNo.

4. Environmental benefit

Amount of funds
unallocated

0 USD

INPEX Green Finance has been confirmed that it conforms with CBSv3.0 and other related criteria by
DNV Business Assurance Japan Co., Ltd., a CBI approved verifier, in accordance with the requirements of CBSv3.0. The result of the post-funding verification for INPEX Green Finance by the CBIapproved verifier is publicly available on our website.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

100

Oil and Gas Reserves and Production Volume
1. Oil and Gas Reserves
Proved reserves

Japan
Crude oil(MMbbls)

Proved developed and undeveloped reserves
INPEX CORPORATION and its subsidiaries
As of December 31, 2021
15
Extensions and discoveries—
Acquisitions and sales—
Revisions of previous estimates
1
Interim production(1)
As of December 31, 2022
15
Associates , etc.
As of December 31, 2021—
Extensions and discoveries—
Acquisitions and sales—
Revisions of previous estimates—Interim production—
As of December 31, 2022—
Proved developed and undeveloped reserves
As of December 31, 2022
15
INPEX CORPORATION and its subsidiaries
As of December 31, 2022
15
Extensions and discoveries—
Acquisitions and sales—
Revisions of previous estimates
0Interim production(1)
As of December 31, 2023
14
Associates, etc.
As of December 31, 2022—
Extensions and discoveries—
Acquisitions and sales—
Revisions of previous estimates—Interim production—
As of December 31, 2023—
Proved developed and undeveloped reserves
As of December 31, 2023
14
Proved developed reserves
INPEX CORPORATION and its subsidiaries
As of December 31, 2023
14
Associates, etc.
As of December 31, 2023—
Proved undeveloped reserves
INPEX CORPORATION and its subsidiaries
As of December 31, 2023
1

Australia & Southeast Asia
Gas
(Bcf)

Crude oil(MMbbls)

Europe, Abu Dhabi and others

Gas
(Bcf)

Crude oil(MMbbls)

Gas
(Bcf)

Total
Crude oil(MMbbls)

Gas
(Bcf)

610
—
—
27
(37)
600

133
—
—
(3)
(16)
114

3,983
—
—
10
(362)
3,632

2,538
—
42
265
(121)
2,723

208
—
51
(8)
(15)
235

2,686
—
42
263
(138)
2,853

4,801
—
51
30
(414)
4,467

—
—
—
—
—
—

1
—
—
(0)
(0)
1

318
—
—
(24)
(21)
273

17
—
(6)
(2)
(3)
6

—
—
—
—
—
—

18
—
(6)
(2)
(3)
7

318
—
—
(24)
(21)
273

600

115

3,905

2,729

235

2,860

4,740

600
—
—
9
(33)
576

114
—
—
11
(17)
109

3,632
—
—
123
(394)
3,360

2,723
—
(10)
29
(121)
2,622

235
—
(12)
33
(25)
232

2,853
—
(10)
40
(138)
2,745

4,467
—
(12)
165
(452)
4,168

—
—
—
—
—
—

1
—
—
(0)
(0)
1

273
—
—
(16)
(23)
234

6
—
—
(3)
(1)
1

—
—
—
—
—
—

7
—
—
(3)
(1)
3

273
—
—
(16)
(23)
234

576

110

3,594

2,623

232

2,748

4,402

540

77

2,676

1,642

231

1,732

3,448

—

1

234

1

—

3

234

35

32

685

980

0

1,013

720

—

—

—

—

—

—

—

Associates, etc.
As of December 31, 2023—

The table on the left lists the proved reserves of crude oil,condensate, LPG and natural gas of INPEX CORPORATION and its subsidiaries and associates, etc. on main
projects. Disclosure contents for proved reserves are determined in accordance with the rules and regulations of
the U.S. Financial Accounting Standards Board (the“FASB”), and are presented by region in accordance with
the Accounting Standards Codification Topic 932 “Extractive Activities—Oil and Gas.”
The Group’s proved reserves as of December 31, 2023,
were 2,748 million barrels for crude oil, condensate andLPG, and 4,402 billion cubic feet for natural gas, for a totalof 3,572 million boe.
Notes: 1.	Based on SEC disclosure standards, the Group discloses proved reservesin each country containing 15% or more of its proved reserves. As of December 31, 2023, the Group held proved reserves in Australia of approximately 105 million barrels for crude oil and approximately 3,245 billion
cubic feet for natural gas, for a total of approximately 717 million BOE.
2.	Proved reserves (as of December 31, 2023) of the following blocks andfields include the portion attributable to non-controlling interests.
		Europe, Abu Dhabi and others, ACG Oil Field (49.00%), Kashagan Oil
Field (49.00%), Snorre Oil Field, etc. (49.49%), Abu Dhabi Onshore Concession (34.24%)
3. MMbbl: Million barrels
4. Bcf: Billion cubic feet
5. Crude oil includes condensate and LPG
6. Oil and gas reserves are rounded to the nearest whole number.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

101

Oil and Gas Reserves and Production Volume

Standardized measure of discounted future net cash flows and their changes relating to proved oil andgas reserves for the year ended December 31, 2023
Millions of yen
December 31, 2022

INPEX CORPORATION and its subsidiaries
Future cash inflows
Future production and development costs
Future income tax expenses
Future net cash flows
10% annual discount for estimated timing of cash flows
Standardized measure of discounted future net cash flows
Associates, etc.
Future cash inflows
Future production and development costs
Future income tax expenses
Future net cash flows
10% annual discount for estimated timing of cash flows
Share of equity-method investees’ standardized measureof discounted future net cash flows
Total consolidated and equity-method affiliates instandardized measure of discounted future net cash flows

Total

Japan

Australia & Southeast
Asia

Europe, Abu Dhabi andothers¥ 40,247,501(12,123,550)(21,996,683)
6,127,269(2,867,983)
3,259,286¥ 1,356,592(370,071)(301,187)
685,334(395,319)
290,014¥ 4,084,837(1,255,646)(746,640)
2,082,551(633,382)
1,449,169¥ 34,806,073(10,497,833)(20,948,855)
3,359,384(1,839,282)
1,520,103

494,544(103,176)(148,026)
243,342(92,012)

—
—
—
—
—

436,632(89,726)(112,762)
234,145(90,243)

57,912(13,450)(35,265)
9,198(1,769)151,330—

143,9027,429¥ 3,410,616¥ 290,014¥ 1,593,071¥ 1,527,531

Notes: 1	Reserves of the following blocks and fields include the portion attributable to non-controlling interests: Europe, Abu Dhabi and others, ACG Oil Field (49.00%),
Kashagan (49.00%), Snorre, etc. (49.49%), Abu Dhabi Onshore Concession (34.24%)
2	Amounts are basically rounded to the nearest million.
Millions of yen
December 31, 2023

INPEX CORPORATION and its subsidiaries
Future cash inflows
Future production and development costs
Future income tax expenses
Future net cash flows
10% annual discount for estimated timing of cash flows
Standardized measure of discounted future net cash flows
Associates, etc.
Future cash inflows
Future production and development costs
Future income tax expenses
Future net cash flows
10% annual discount for estimated timing of cash flows
Share of equity-method investees’ standardized measureof discounted future net cash flows
Total consolidated and equity-method affiliates instandardized measure of discounted future net cash flows

Total

Japan

Australia & Southeast
Asia

Europe, Abu Dhabi andothers¥ 35,886,906(11,870,083)(18,569,006)
5,447,817(2,598,632)
2,849,185¥ 1,620,747(436,929)(356,649)
827,169(495,595)
331,574¥ 3,608,516(1,326,599)(611,294)
1,670,623(499,901)
1,170,723¥ 30,657,644(10,106,556)(17,601,064)
2,950,024(1,603,136)
1,346,888

384,446(99,307)(90,481)
194,657(62,349)

—
—
—
—
—

373,168(94,586)(84,675)
193,906(62,305)

11,278(4,721)(5,806)751(45)132,308—

131,601706¥ 2,981,493¥ 331,574¥ 1,302,324¥ 1,347,594

Notes: 1	Reserves of the following blocks and fields include the portion attributable to non-controlling interests. Europe, Abu Dhabi and others, ACG Oil Field (49.00%),
Kashagan (49.00%), Snorre, etc. (49.49%), Abu Dhabi Onshore Concession (34.24%)
2 Amounts are basically rounded to the nearest million.

Disclosure contents for the standardized measure of discounted future net cash flows and their changes relating
to proved reserves for the year ended December 31, 2023
are determined in accordance with the rules and regulations of the FASB, and are presented by region in accordance with the Accounting Standards Codification Topic
932 “Extractive Activities—Oil and Gas.”
In calculating the standardized measure of discounted
future cash inflows, the arithmetic average of oil and gas
prices at the first day of each month during the current
fiscal year is applied to the estimated annual future production from proved reserves. Future development andproduction costs are estimated based upon the assumptions of constant oil and gas prices and the continuationof existing economic, operating and regulatory conditions. Future income tax expenses are calculated by applying the year-end statutory tax rates to estimated future
pretax cash flows less the tax basis of the properties involved based upon laws and regulations already legislated at year-end. The discount is computed by applying
a prescribed discount rate of 10% to the estimated future
net cash flows.
The translation of U.S. dollar amounts into yen amounts
is computed by applying the year-end exchange rates(TTM) of ¥132.70 and ¥141.82 to the U.S. dollar as of December 31, 2022 and December 31, 2023, respectively.
Since these figures are calculated in accordance withthe rules set forth by the FASB, which have the following
aspects, they do not represent the fair market value nor
the Group’s estimation for the present value of the cash
flows of reserves of crude oil, condensate, LPG and natural gas.
• No economic value is attributed to potential reserves.
• A prescribed discount rate of 10% is applied.
• 
Oil and gas prices are subject to constant fluctuations
despite the assumptions of constant oil and gas prices
of Topic 932.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

102

Oil and Gas Reserves and Production Volume

Millions of yen
Japan

Australia &Southeast Asia

Europe, Abu Dhabi
and others¥ 3,410,616¥290,014¥ 1,449,169¥ 1,520,103¥151,330

—

—

—

—

—

(1,832,805)(62,879)(495,844)(1,247,559)(26,523)(2,132,111)

79,214(411,321)(1,751,892)(48,112)168,334(72,852)
368,083
326,104
2,540,270(28,545)
234,400

4,950
620(32,937)
26,942
5,718—
19,93275,20867,733
141,278
145,996
98,908—99,596

85,662(133,942)
271,949
138,0712,388,570(28,545)
104,471

2,513(7,262)(12,207)
15,09547,074—
10,400¥ 2,981,493¥331,574¥1,170,723¥ 1,346,888¥132,308

Total

Standardized measure at beginning of the period,
as of January 1, 2023
Changes resulting from:
Sales and transfers of oil and gas produced, net of
production costs
Net changes in oil and gas prices and production
costs
Development costs incurred
Changes in estimated future development costs
Revisions of previous quantity estimates
Accretion of discountNet change in income taxes
Extensions, discoveries and improved recoveries
OtherStandardized measure at end of the period, as ofDecember 31, 2023

Associates, etc.

Notes: 1.	Reserves of the following blocks and fields include the portion attributable to non-controlling interests:
		Europe, Abu Dhabi and others, ACG Oil Field (49.00%), Kashagan(49.00%), Snorre, etc. (49.49%), Abu Dhabi Onshore Concession (34.24%)
2. Amounts are basically rounded to the nearest million.

2. Oil and Gas Production
2019/3

2019/122020/122021/122022/122023/12

3.5
12.3
287.5

3.1
35.5
313.8

3.0
39.5
288.6

2.9
37.0
303.6

2.6
34.0
353.6

2.5
33.7
346.6

303.3

352.4

331.1

343.5

390.3

382.8

131.6
293.7
223.7

118.6
889.9
217.9

110.5
950.9
203.2

110.2
910.5
230.6

100.9
883.9
226.7

94.3
970.5
239.4

649.0

1,226.4

1,264.6

1,251.3

1,211.5

1,304.3

28.2
68.7
327.4

25.4
207.3
353.5

23.7
224.6
325.1

23.6
214.5
346.2

21.0
205.8
395.4

19.7
220.2
390.4

424.3

586.2

573.4

584.3

622.2

630.3

Oil (Thousand bbl/day):Oil & Gas Japan
Oil & Gas Overseas Ichthys Project
Oil & Gas Overseas Other Projects
Total
Natural gas (MMcf/day):Oil & Gas Japan
Oil & Gas Overseas Ichthys Project
Oil & Gas Overseas Other Projects
Total
Crude oil and natural gas (Thousand BOE/day):Oil & Gas Japan
Oil & Gas Overseas Ichthys Project
Oil & Gas Overseas Other Projects

Total

The table on the left show the Group’s production by
segment.
Notes: 1.	Changes has been made in the segment income and reportable segments from the first quarter of the fiscal year ending December 2023.
These data are based on new segments, and the segment income is
profit attributable to owners of parent in the consolidated statement ofincome. The reportable segments are divided into “Oil & Gas Japan” and“Oil & Gas Overseas.” The “Oil & Gas Overseas” segment is further classified as “Ichthys Project,” which is a major operator project of the Group,and “Other Projects,” which is comprised of other overseas projects.
2. LPG produced outside Japan is included in crude oil.
3	The production volumes include the equity of associates, etc.
4	The quantities are rounded to the first decimal place.

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

Growth Strategy

A Company Capable of
Sustainable Development

Financial andOther Information

103

Corporate Information
Information Disclosure and Activities for Shareholders and Investors
INPEX IR Activities
INPEX is committed to timely and appropriate disclosure of information to shareholders
and investors and to close communication with them. Feedback received from shareholders and investors is regularly reported to management as part of our efforts to enhance
corporate value.

Overview of IR Activities
Starting from the fiscal year 2024, we have fully resumed face-to-face IR activities, such as
overseas road shows and facility tours for institutional investors, analysts, and individual
investors. INPEX’s spokespersons include the Representative Director and Chairman; Representative Director, President and CEO; Senior Vice President, Corporate Strategy &Planning; and Senior Vice President, Finance & Accounting. Our Corporate Communications Unit is in charge of practical matters related to IR activities.
Over the last three fiscal years, the following meetings were held to actively exchange
views on INPEX’s Long-term Strategy and Medium-term Business Plan, financial forecasts,
cash allocation, shareholder returns, the situation of Ichthys and other projects, climatechange actions, corporate governance, and other topics. In fiscal 2023, INPEX also held its
first Investor Day.Opinions and concerns raised by shareholders and investors throughsuch dialogue have been fed back to INPEX’s management and Board of Directors in principle four times a year. They are receiving such feedback about four times a year from fiscal
2023 onward.
Activities
One-on-one meetings with Japanese institutional
investors and analysts
One-on-one meetings with overseas institutional
investors and analysts
Financial results briefings for institutional
investors and analysts (live streaming provided
since 2022 with Japanese-English simultaneousinterpretation)
Business briefings for institutional investors andanalysts
Overseas road shows
Conferences organized by securities companies
Briefings for individual investors

Events in fiscal Events in fiscal Events in fiscal
2021
2022
2023
140

128

149

89

100

119

2

2

2

0

0

1

0
5
2

1
5
5

1
6
4

General Meetings of Shareholders
The Notice of the Ordinary General Meeting of Shareholders held on March 26, which included information on how to access the materials for the meeting, was mailed to shareholders on March 4, 2024, three weeks before the Ordinary General Meeting (Forshareholders who requested delivery of documents, Material of the 17th Ordinary General
Meeting of Shareholders was mailed). Prior to the dispatch of the above materials, theelectronic convocation of this General Meeting of Shareholders were posted on the Company’s website on February 26. In addition, the proceedings of the Ordinary General Meeting of Shareholders were streamed live via the internet.
Year of Ordinary General Meeting of Shareholders

2022

2023

2024

Total number of shareholders

136,935

220,536

292,163

130

205

288

Number of attending shareholders at general
meeting

Credit Rating (As of June 30, 2024)
Credit Rating Agency

Long-Term Credit
Ratings

Short-Term Credit
Ratings

Moody’s

A2 (stable)—

Standard & Poor’s

A (stabel)

A-1

Rating & Investment Information (R&I)

AA (stable)a-1+

Rating & Japan Credit Rating Agency

AA+ (stable)—

Status of Inclusion in Major Indexes (As of June 2024)
 ikkei Stock Average (Nikkei 225)
NTOPIX
JPX-Nikkei Index 400
FTSE4Good Developed Index/
FTSE4Good Japan Index
FTSE Blossom Japan Index/
FTSE Blossom Japan Sector Relative Index
MSCI Nihonkabu ESG Select Leaders Index/
MSCI Japan ESG Select Leaders Indexes

 &P/JPX Carbon Efficient Index
SSOMPO Sustainability Index
iSTOXX MUTB Japan Platinum Career 150
Index
CDP Climate Change 2023
Selected as Yearbook Member in the

S&P Global Sustainability Award 2024
Environmental Sustainability andProgress in the Ministry of Environment’s
ESG Finance Awards Japan

INPEX CORPORATION Integrated Report 2023

Introduction

Value Creation

A Company Capable of
Sustainable Development

Growth Strategy

Financial andOther Information

104

Corporate Information

Corporate Data (As of December 31, 2023)

Stock Information (As of December 31, 2023)

Company Name

INPEX CORPORATION

Established

April 3, 2006

Capital¥290,809,835,000

Company
Headquarters
Number of
Employees(Consolidated)
Main Business

Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku, Tokyo 107-6332,
Japan
3,531

Securities Code
Listed Stock Exchange
Business Year
Ordinary General
Meeting of Shareholders
Shareholder Registry
Administrator
Contact

Research, exploration, development, production and sales of oil,natural gas and other mineral resources, other related businesses
and investment and lending to the companies engaged in these
activities, etc.

1605
Tokyo Stock Exchange (Prime Market)
From January 1 to December 31 every year
Every March
Mizuho Trust & Banking Co., Ltd.
3-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Stock Transfer Agency Department of the Head
Office of Mizuho Trust & Banking Co., Ltd.

Share Unit
100 shares
Authorized Shares
3,600,000,000 common stocks
1 Class A Stock
Total Number of Shareholders and Issued Shares
Common Stock
292,163 / 1,386,667,167 sharesClass A Stock*
1 shareholder (Minister of Economy,
Trade and Industry) / 1 share2
1. As a result of the cancellation of treasury stock on January 31, 2024,
the total number of issued shares has changed to 1,259,136,067.
2. The Company’s Articles of Incorporation stipulate that certain major corporate decisions require a resolution by the holder of theClass A Stock in addition to the approval of the shareholders’meetings or the Board of Directors.

Stock Chart (January 2014–June 2024)
(Yen)
2,500

Organization Chart (As of April 1, 2024)

Closing price 2,367
on June 28

2,000

General Meeting of Shareholders

1,500
Audit & Supervisory Board(members)

Board of Directors

Nomination and Compensation
Advisory Committee

Audit & Supervisory
Board Members’ Office

Executive Committee

INPEX Advisory Committee

President & CEO

Compliance Committee

1,000

1,220

500
0

Sustainability Committee
Corporate HSE Committee

2014/1

2015/1

2016/1

2017/1

2018/1

2019/1

Major Shareholders (Common Stock)

Information Security Committee

Name

INPEX Value Assurance
System Committee

Audit Unit

HSE Unit

Legal Unit

Strategic Projects Office

General Administration DivisionCorporate Strategy & Planning Division

Finance & Accounting Division

Logistics & IMT Division

Technical Division

Innovation Division

Global Energy Marketing Division

Domestic Energy Supply & Marketing Division

New Ventures & Global Exploration Division

Hydrogen & CCUS Development Division

Renewable Energy Division

Asia Projects Division

Oceania Projects Division

Europe & Middle East Projects Division

Abu Dhabi Projects Division

Domestic Exploration & Production Division

Minister of Economy, Trade and Industry
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Custody Bank of Japan (Trust Account)
Japan Petroleum Exploration Co., Ltd.
JAPAN SECURITIES FINANCE CO., LTD.
SMBC Nikko Securities Inc.
STATE STREET BANK WEST
CLIENT - TREATY 505234
JPMorgan Securities Japan Co., Ltd.
Mitsubishi Corporation
The Nomura Trust and Banking Co., Ltd.
(Trust Account)2020/12021/12022/12023/12024/1

Shareholding by Shareholder Type

Percentage of
Number of
total common
common sharesshares* (%)

276,922,800

21.99

176,384,000

14.01

71,213,390
53,446,600
33,911,300
33,709,210

5.66
4.24
2.69
2.68

20,028,243

1.59

17,545,677
14,623,200

1.39
1.16

14,304,100

1.14*T he shareholder ratio is calculated after subtracting treasury shares(127,531,146 shares).
The shareholder ratio is rounded off to the nearest whole number.

Shareholder type

Financial Institutions(Including Trust
Accounts)
Securities Companies
Other Domestic
Corporations
Treasury Shares
Minister of Economy,
Trade and Industry1
Foreign Corporations
Individuals and Other

Number ofshareholders

Number ofcommonsharesPercentage of
total commonshares2 (%)

104

320,697,950

23.13

70

86,912,266

6.27

1,605

88,711,516

6.40

1

127,531,146

9.20

1

276,922,800

19.97

1,580
288,802352,252,996
133,638,493

25.40
9.64

1. Excludes one Class A Stock
2. The shareholder ratio is rounded off to the nearest whole number.

Akasaka Biz Tower
5-3-1 Akasaka, Minato-ku, Tokyo 107-6332, Japan

https://www.inpex.co.jp/english/

Inquiries
For IR inquiries, as well as to offer comments and opinions about this report, please contact below.
Corporate Strategy & Planning Division Corporate Communications Unit Investor Relations Groupwww.inpex.co.jp/english/ir/inquiries.html