October 1, 2014
Company Name: Japan Petroleum Exploration Co., Ltd. (JAPEX)
President: Osamu Watanabe
Inquiries: Samdeck Nakamoto,General Manager, Media and Investor Relations Department
TEL: +81-3-6268-7110
JAPEX Invests in Japan Methane Hydrate Operating Co., Ltd.
Japan Petroleum Exploration Co., Ltd. (“JAPEX”, President: Osamu Watanabe) is pleased toannounce today it has invested in Japan Methane Hydrate Operating Co., Ltd., a joint
venture company established on October 1, 2014 aiming to participate in the Medium toLong-term Offshore Production Test of methane hydrate conducted by the Japanesegovernment.
JAPEX is committed to utilizing the technology, knowledge and experience it has
accumulated through exploration and production of oil and natural gas operations tocontribute for research and future commercialization on Japan’s methane hydrate
resources as a pioneer.
Please refer to the attachment for the October 1 announcement issued by Japan
Methane Hydrate Operating Co., Ltd.
Please see our website about JAPEX as below;
http://www.japex.co.jp/english/index.html

October 1, 2014

Company Name: Japan Methane Hydrate Operating Co., Ltd. (JMH)
President:

Shoichi Ishii

Inquiries:Masanori Abe,General Manager, Planning Department

TEL:+81-3-6268-7200

Establishment of New Company for Participation in R & D Projectof Pore-filling Type Methane Hydrate
It is pleased to announce that Japan Methane Hydrate Operating Co., Ltd. (JMH) was establishedon October 1, 2014 aiming to participate in the Medium to Long-term Offshore Production Test frompore-filling type methane hydrate which will be conducted by the Japanese government.

A substantial quantity of methane hydrate is estimated in the offshore areas around Japan. Serving
as a new domestic energy source, with the potential to make a major contribution to a stable nationalenergy supply for Japan, technological development is expected for its commercialization including
establishment of production technologies. At the end of the fiscal year 2012, the Japanese
Government carried out the first offshore production test and succeeded in the world’s first
production of gas from methane hydrate under the seabed. At the end of 2013, the Japanese
government announced the latest version of the “Plan for the Development of Marine Energy andMineral Resources”, in which the Medium to Long-term Offshore Production Test is planned.

JMH has been formed with agreement and capital participation of 11 companies engaging in oil andnatural gas development and in plant engineering. The company aims to provide contract services
efficiently, effectively and smoothly on field operations in the offshore production test of pore-fillingtype methane hydrate in “all-Japan” structure, and to share its findings among private-sector in Japan.
Optimizing this structure, participating companies will proactively offer their technologies andknowledge to the Japan’s research and development of pore-filling type methane hydrate toward its
commercialization.

Appendix: Corporate Profile of Japan Methane Hydrate Operating Co., Ltd.Company Profile

Company Name: Japan Methane Hydrate Operating Co., Ltd. (JMH)
Established Date: October 1, 2014
Head Office: Sapia Tower 12th Floor, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo 100-0005 Japan
Tel: +81-3-6268-7200
Purpose:To aim to participate in the Medium to Long-term Offshore Production Test aboutdevelopment of pore-filling type methane hydrate conducted by the Japanese
government, and to provide contract services efficiently, effectively and smoothly onfield operations and share its findings among Japanese private-sector in “all Japan”
structure

Shareholders (11 companies):
Japan Petroleum Exploration Co., Ltd. (JAPEX)

33%

Japan Drilling Co., Ltd. (JDC)

18%

INPEX CORPORATION (INPEX)

13%

Idemitsu Oil & Gas Co., Ltd.

5%

JX Nippon Oil & Gas Exploration Corporation

5%

NIPPON STEEL & SUMIKIN ENGINEERING CO., LTD. (NSENGI)

5%

Chiyoda Corporation (Chiyoda)

5%

Toyo Engineering Corporation (Toyo)

5%

JGC CORPORATION

5%

Mitsui Oil Exploration Co.,Ltd. (MOECO)

5%

Mitsubishi Gas Chemical Company, Inc. (MGC)

1%

Capital: 300 million yen (Capital: 150 million yen; Capital Reserve: 150 million yen)
President:Shoichi Ishii (Executive Vice Presidents, Japan Petroleum Exploration Co., Ltd.)
Director:Hideaki Takahashi (Executive Officer, Japan Petroleum Exploration Co., Ltd.)
Masahiro Nakamura (Executive Officer, Japan Drilling Co., Ltd.)
Tetsuro Tochikawa (Executive Officer, INPEX CORPORATION)
Kunimitsu Oba (Executive Officer, JX Nippon Oil & Gas Exploration Corporation)
Nobuaki Aoyama (Managing Director, NIPPON STEEL & SUMIKIN ENGINEERINGCO., LTD.)
Auditor: Tetsuya Higuchi (Assistant General Manager Finance Department, Japan Drilling Co.,Ltd.)
Organization:
Administration Department
Planning Department
Operations Department(As of October 1, 2014)