Financial Results
for the six months ended September 30, 2008

November 13, 20081

Agenda1. At the Start of new INPEX CORPORATION‐ Update of Corporate Activities ‐Kunihiko Matsuo
Representative Director, Chairman

2. Financial Results for the year ended September 30, 2008
Mutsuhisa Fujii
Director, Executive Vice President
Head of Finance & Accounting Division2

Cautionary Statement
This presentation includes forward‐looking information that reflects the planand expectations of the Company. Such forward‐looking information is basedon the current assumptions and judgments of the Company in light of theinformation currently available to it, and involves known and unknown risk,
uncertainties, and other factors. Such risks, uncertainties and other factors may
cause the Company’s performance, achievements or financial position to bematerially different from any future results, performance, achievements orfinancial position expressed or implied by such forward‐looking information.
Such risks, uncertainties and other factors include, without limitation:
 Price volatility and change in demand in crude oil and natural gas
 Foreign exchange rate volatility
 Change in costs and other expenses pertaining to the exploration,
development and production
The Company undertakes no obligation to publicly update or revise thedisclosure of information in this presentation (including forward‐looking
information) after the date of this presentation3

At the Start of new INPEX CORPORATION‐ Update of Corporate Activities ‐Kunihiko Matsuo
Representative Director, Chairman

4Long‐term Growth Target & Strategies for Corporate GrowthLong‐term Growth Target INPEX CORPORATION Group expands oil and natural gas exploration and development activities ina sustainable manner and aims to become a global energy company with the daily production of 800
thousand to one million barrels of oil equivalent in the late 2010s.
 While holding upstream oil and gas business as the core business, INPEX CORPORATION Group aims
to become a company which provides diversified energies through establishing a natural gas supply
chain and working proactively towards the development of unconventional hydrocarbon resources andnew energies.

Three Strategies for Corporate GrowthBased on a well‐balanced asset portfolio, further strengthened operational and technical capabilities andreinforced management, all of which have been formed as the result of business integration, INPEXCORPORATION pursues the following three strategies:
 Sustainable expansion of oil and gas Exploration and Production ventures
 Establishment of gas supply chain and enhancement of Gas Business Growing into a company which provides diversified energies

5Ichthys LNG Project Selected the designated industrial site on Blaydin Point on Middle Arm Peninsula inDarwin as the location for LNG facility
 FEED will follow shortly
 FID target: The end of 2009 or early 2010
 Production start target: late 2014 or early 2015
 CAPEX: More than US$20 billion
 Production volume: More than 8 MM t/a of LNG (2 trains)
100,000 bbl/d of condensate
1.6 MM t/a of LPG
 Reserves: 12.8 Tcf of natural gas and 527 MM bbl of condensate(2.28 billion boe for our net reserves of 3 billion boe in total)* Drilled the exploration well (Mimia‐1), made a discovery of gas and condensate in WA‐
344‐P Block near Ichthys and scheduled to evaluate the gas reserves
 Currently drilling the exploration well (Ichthys North‐1) in WA‐274‐P Block6* Total reserves of the Ichthys gas and condensate field reported to Australian government. The above reserves are recoverable
reserves in accordance with an in‐house evaluation standard, which is different from probable reserves based on SPE standard
released on 16th May, 2008

Ichthys LNG Project (Con’t)

Proposed site
Wickham Point(Darwin LNG)
Middle Arm Peninsula

7

Ichthys LNG Project (Con’t)* As of May 2008 (Source: Referral of Proposed Action – Browse Basin and Blaydin Point, Darwin)

8

Abadi LNG Project Drilled 4 additional appraisal wells since
May 2007 to confirm the reserves
 Conducted Pre‐FEED for Floating LNG
 Submitted the plan of development(POD) in May 2008 and started
discussions with Indonesian Government(BPMIGAS) Discussing POD with Floating LNG as apreferable option, while assuming a
number of development options
 Proceed to development and production
period (20 years) upon approval of POD
 FID target: 2011
Drilling Rig (Masela Bolck)9 Production start target: 2016

LNG receiving terminal at Naoetsu, Japan
Landfill Situation (July 2008)

 FID to construct a LNG receiving terminal in the port of
Naoetsu in Joetsu city, Niigata Prefecture in August
2008
 Reinforce our setup for a stable supply of natural gas,
together with the introduction of re‐gasified LNG from
Shizuoka Gas Company, Ltd. (scheduled in January2010) Strive for the sustained growth of our natural gas
business by making optimal utilization of natural gas
sources both domestic and overseas, and supply
infrastructure in Japan

Receiving Terminal Image‐ Outline of the Naoetsu LNG receiving terminal ‐Construction site: Arahama Pier zone, Port of Naoetsu, Joetsu
city, Niigata Prefecture, Japan
Lot area: approximately 25 ha
Major facilities: berth, tanks (aboveground 180,000‐kl tank x 2:
workable quantity 1.5 MM t/a, expansion
capacity for 1 tank), re‐gasifying, and calorificvalue adjustment facilities
Investment cost: approximately 100 billion yen (including the costof land acquisition)
Start‐up target of construction: 2009
Start‐up target of operation: 201410

Leading to Gas Supply Chain

Exploration
Exploration&&Production
Production(DST in Masela Block) Earlycommercialization of
discovered oil & gas
fields overseas
 Active explorationand production
overseas

11

Liquefaction
Liquefaction(Bontang LNG Plant)

 Steady progress oflarge-scale LNG
projects (Ichthys andAbadi)

Shipping
Shipping&&vaporization
vaporization(Shipping Berth of Darwin) Diversifying sourceof feed gas for
expansion ofdomestic natural gas
business
 Construction of ourown LNG receiving
terminal

Distribution
Distribution(Shizuoka Line) Optimal utilization ofdomestic gas andoverseas LNG
 Connect domestic
pipeline network withoverseas assets

ACG Oil Fields / Kashagan Oil Field
ACG Oil Fields (Azerbaijan)
 The fire of BTC pipeline occurred on August 6, located close to a valve
station in Turkey. BTC shutdown resulting from the fire limited the
production volume from ACG Oil Fields. On August 26, Operation wasback to normal after the repairs.

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

Kashagan Oil Field (Kazakhstan) Concluded a final agreement on 31 October, 2008 with Kazakhstan
authority within the framework of the basic agreement reached in
January 2008
 Participating Interest: reduced to 7.56% from 8.33%
 Established a new joint operating company (North Caspian Operating
Company). NCOC will take over the operatorship from Agip KCO in
January 2009
 Production start target: 2012
Offshore Production Facilities(Kashagan Oil Field)

12 Plateau production will be 300 thousand bbl/d and further increase to
450 thousand bbl/d at the Experimental Program stage. At the Kashaganfull field development stage, a plateau of 1.5 million bbl/d is planned
towards the end of the next dacade.

Production Start‐up Projects in 2009
Van Gogh Oil Field (Van Gogh Defined Area) (Australia)
Production start: April 2009



Oil production volume: Approximately 60,000 bbl/d (peak rate)Participating Interest: 47.499%

Drilling Rig (Van Gogh Oil Field)

Tangguh LNG Project (Indonesia)

LNG construction under construction

Production start: 1Q 2009



LNG production: 7.6 MM t/a

Our net interest: Approximately 7.79%

Tangguh LNG Plant

Frade Block (Brazil)

13

Frade FPSO



Production start: April 2009



Oil production volume: Approximately 100,000 bbl/d (peak rate)

Our net interest: Approximately 6.85%

Production Start‐up Schedule
Australia / Timor Sea JPDA

Indonesia

IchthysRavensworth

2016

Abadi

Australia

2015

Australia

Van Gogh

2014

Australia

North Belut

Kuda Tasi / Jahal / Kitan

Eurasia

2013

JPDA

Tangguh2012

Bayu‐Undan
JPDA）

Sisi Nubi

Kashagan

2011

Kazakhstan

Hiu

Kerisi2010

kairanAktoteKazakhstan

Kazakhstan

Kashagan southwest

APN

Kazakhstan

2009

Middle East / Africa
Kalamkas
Kazakhstan

2008

Belanak

Americas
2007

Frade

2006

JoslynAzadegan(Cut Off Mining Area)

Iran

CanadaGunashili (deepwater)
Azerbaijan

Brazil

2005
2004

14

Ship
Shoal 72
USA

Development Phase(Production plan is settled)

Main
Pass
117/118
USA

West
Cameron401/402

Azeri
El Ouar I/II

Azerbaijan

Algeria

USA

Project under establishment ofdevelopment plan

Gas

Oil/Condensate

New Exploration Project / Exploration Performance
Block BM‐C‐31 (Brazil)
 Acquired a new exploration block in November 2008:
Block BM‐C‐31 in Campos Basin, Offshore Brazil
 Participating Interest: 20% (Operator: Petrobras) Deepwater project with a water depth ranging from1,750m to 1,950m

Exploration Performance (as of the end of September 2008)
Completion or Under operation

Exploratory wells

Seismic Survey

Completion

Japan

1

(1)

2D (km)

1,700

Indonesia

7(1)

3D (km2)

766

Australia

5

(2)

Libya

1

(1)

Egypt

2

(1)

U.K.

1

Total*
15(as operator)

17

(6)

* We planned total 30 wells in our exploration plan
during FY2009/03 as of 16 May, 2008 and have changed
to 27 wells through revision of plan (10 wells scheduled
in 2nd half)Financial Results
for the six months ended September 30, 2008

Mutsuhisa Fujii
Director, Executive Vice President
Head of Finance & Accounting Division

16

Subsidiaries and Affiliates
58 consolidated subsidiaries
Major subsidiaries

Country/region

OwnershipStage

Accounting term

INPEX CORPORATION

Indonesia

100%

Production

March

Teikoku Oil

Japan

100%

Production

MarchJapan Oil Development

UAE

100%

Production

March (provisional
settlement of account)

INPEX Natuna

Indonesia

100%

Production

March

INPEX Sahul

Timor Sea Joint Petroleum
Development Area

100%

Production

December

INPEX Browse

Australia

100%

Preparation fordevelopment

March (provisional
settlement of account)

INPEX Southwest Caspian Sea

Azerbaijian

51%

Production

March (provisional
settlement of account)

INPEX North Caspian Sea

Kazakhstan

45%

Development

March (provisional
settlement of account)

OwnershipStage

Accounting term

14 equity method affiliates
Major affiliates

17Country/region

MI Berau B.V.

Indonesia

44%

Development

DecemberAngola Japan Oil

Angola19.6%

Production

December

INPEX Offshore North Campos

Brazil37.5%

Development

DecemberHighlights of the Consolidated Financial Results
for the six months ended September 30, 2008

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

Change

554.1

741.5

187.4

33.8%

Crude Oil Sales

357.7

478.0

120.3

33.6%

Natural Gas Sales (Including LPG)

183.5

248.8

65.3

35.6%

Others

12.8

14.6

1.7

13.7%

Operating Income (Billions of yen)

325.9

503.7

177.7

54.5%

Ordinary Income (Billions of yen)

321.6

479.4

157.7

49.1%

Net Income

81.0

104.0

22.9

28.4%

34,385.24

44,155.91

9,770.67

28.4%

Net Sales(Billions of yen)(Billions of yen)

Net income per share(Yen)

Average number of shares issued and outstanding during the six months ended September 30, 2008(consolidated): 2,355,673

18%ChangeCrude Oil Sales
Apr.‐Sep. ’07

Change%Change

Net Sales (Billions of yen)

357.7

478.0

120.3

33.6%

Sales volume (Mbbl)

42,97138,301(4,670)(10.9%)

Average unit price ofoverseas production ($/bbl)

69.47

116.73

47.26

68.0%

Average unit price ofdomestic production(¥/kl)

55,004

81,78926,785

48.7%

Average exchange rate(¥/$)

119.44105.89

13.55

11.3%

yen appreciation

yen appreciation

Change%Change

Sales volume by region(Mbbl)

Apr.‐Sep. ‘08

Apr.‐Sep. ’07

151

161

11

(24 thousand kl)(26 thousand kl)(2 thousand kl)

Asia/Oceania

5,917

5,436

(481)

(8.1%)

Eurasia (Europe/NIS )

9,573

4,316

(5,257)(54.9%)

Middle East/Africa

27,281

28,306

1,025

3.8%

Americas

50

82

32

63.7%

42,97138,301(4,670)(10.9%)

Japan

Total

19

Apr.‐Sep. ‘08

7.0%

Natural Gas Sales (Excluding LPG)
Apr.‐Sep. ’07

Change%Change

178.1

239.0

60.8

34.2%

202,083

197,349(4,733)(2.3%)

Average unit price of overseas
production ($/Mcf)

7.32

11.73

4.41

60.2%

Average unit price of domestic
production(¥/ m3)

34.92

37.25

2.33

6.7%

Average exchange rate (¥/$)

119.32106.24

13.08

11.0%

yen appreciation

yen appreciation

Net Sales (Billions of yen)
Sales volume (MMcf)

Sales volume by region (MMcf)

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

Change%Change

28,22228,30179(756 million m3)(758 million m3)(2 million m3)

Asia/Oceania

159,073

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

Eurasia (Europe/NIS)

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas14,78814,502(286)(1.9%)

202,083

197,349(4,734)(2.3%)

Japan

Total

20

Apr.‐Sep. ‘08

0.3%

LPG Sales
Apr.‐Sep. ’07

Change%Change

Net Sales (Billions of yen)

5.4

9.8

4.4

83.0%

Sales volume (Mbbl)

755

1,083

329

43.6%

Average unit price of overseas
production ($/bbl)

53.47

81.30

27.83

52.0%

Average unit price of domestic
production(¥/ kg)

126

147

21

16.3%

119.99105.65

14.33

11.9%

yen appreciation

yen appreciation

Average exchange rate (¥/$)
Sales volume by region (Mbbl)

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

Change%Change

100

106

7

(9 thousand t)(10 thousand t)(1 thousand t)

Asia/Oceania

655

977

322

49.2%

Eurasia (Europe/NIS )

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas

‐

‐

‐

‐

755

1,083

329

43.6%

Japan

Total

21

Apr.‐Sep. ‘08

6.8%

Analysis of Net Sales Increase(Billions of Yen)
314.3
800

1.7
(88.0)

600(40.7)
400

741.5
554.1

200

0

Net Sales
Apr.‐Sep. ‘07

22

Sales Volume
Decrease

Increase in
Unit Price

Exchange rate
(Yen appreciation)

OthersNet Sales
Apr.‐Sep. ‘08

Statements of Income(Billions of Yen)
Net Sales

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

554.1

741.5

Change187.4%Change

33.8%

Crude oil sales :478.0(Change)+120.3Natural Gas sales* : 248.8(Change)

189.6

188.4

(1.2)

(0.6%)

Exploration expenses

8.3

15.7

7.4

89.1%

Selling, general andadministrative expenses

30.2

33.6

3.4

11.5%

Operating Income

325.9

503.7

177.7

54.5%

Other income

22.0

10.7

(11.3)(51.4%)

Other expenses

26.3

34.9

8.6

32.7%

Ordinary Income

321.6

479.4

157.7

49.1%

Cost of Sales

Income taxes

231.9

371.0

139.1

60.0%

Minority interests

8.6

4.3

(4.3)

(50.0%)Net Income

81.0

104.0

22.9

28.4%

＊Including LPG

23

+65.3

Cost of sales for
crude oil :137.3(Change)+5.0

Cost of sales fornatural gas* : 42.8
(Change)(6.6)

INPEX Browse, INPEX Timor
Sea, etc.

Mainly income taxes in foreigncountries

Other Income/Expenses(Billions of Yen)

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

Other income

22.0

10.7

(11.3)(51.4%)

Interest income

5.9

3.4

(2.4)

(41.2%)

Dividend income

1.2

3.7

2.5

198.1%

Equity in earnings of affiliates

1.0

1.3

0.2

24.2%

Net gain on re‐determination of unitized field

3.8

‐

(3.8)

(100%)Net gain on taking effect of exploration andproduction agreement

3.5

‐

(3.5)

(100%)

Foreign exchange gain

4.5

‐

(4.5)

(100%)

Other

1.8

2.1

0.2

15.9%

Other expenses

26.3

34.9

8.6

32.7%

Interest expense

5.9

3.4

(2.5)

(42.5%)

Provision for allowance for recoverable accounts
under production sharing

7.5

14.1

6.6

88.5%

Provision for exploration projects

0.6

2.5

1.8

266.7%

Loss on valuation of investment securities

6.8

5.1

(1.7)

(25.1%)

‐

5.2

5.2

‐

5.4

4.5

(0.8)

(16.3%)

Foreign exchange loss
Other
24

Change%Change

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

Net gain by the effect of
joint venture agreement at
Venezuela project inprevious year

Increase in exploration
expenditure in Abadi and
INPEX Libya

3.43 yen depreciation fromthe beginning of this termand 2.66 yen appreciationfrom the beginning of theterm in previous year

Analysis of Net Profit Increase
Main Factor‐ Decrease of the amount of cost recovery in ACG

Main Factor‐ Increase of royalty resulted from sales increase(JODCO)‐ Increase in exploration expenditure in INPEX
Browse, Abadi and INPEX Libya‐ Decrease from appreciation of yen(Billions of yen)

400
314.3

300

1.7

1.2

(88.0)

200(15.9)(3.4)(11.4)

Main Factor‐ Net gain by re‐determination of reserves inprevious year
(3.8)
‐ Net gain by the effect of joint venture agreementin previous year
(3.5)

100

4.3
(139.1)‐ Foreign exchange gain and loss
(9.8)

104.0

81.0
(40.7)

0Apr.‐Sep. ‘07

Decrease in Increase in Appreciation
Sales Volume Unit Priceof the Yen

OthersCost of
Sales

Exploration
Expenses andAllowance for
Exploration*

SG&A

Other Income
and Expenses

Net Sales

25*Provision for allowance for recoverable accounts under production sharing and Provision for exploration projects

IncomeTax

Minority
Interest Apr.‐Sep. ‘08
and Other

Balance Sheets(Billions of yen)Sep. 30 ‘08

Change%Change

Current assets

565.1

511.2

(53.9)(9.5%)

Tangible fixed assets

254.4

277.8

23.3

9.2%

Intangible assets

265.4

259.3

(6.1)

(2.3%)

Recoverable accounts under
production sharing

383.1

446.5

63.3

16.5%

Other investments

411.1

481.2

70.1

17.1%

Less allowance for recoverable
accounts under production
sharing(71.4)(88.1)(16.6)

23.3%

Total assets

1,807.9

1,888.0

80.1

4.4%

Current liabilities

325.2

347.5

22.3

6.9%

Long‐term liabilities

243.8

208.0

(35.8)(14.7%)

1,238.8

1,332.4

93.6

7.6%

81.4

91.9

10.5

12.9%

Total liabilities and net assets

1,807.9

1,888.0

80.1

4.4%

Net assets per share (Yen)491,168

526,70235,534

7.2%

Total net assets(Minority interests)

26

Mar. 31 ‘08

Statements of Cash Flows(Billions of Yen)

Apr.‐Sep. ’07

Apr.‐Sep. ‘08

Income before income taxes and minority interests

321.6

479.4

157.7

49.1%

Depreciation and amortization

17.7

19.6

1.9

10.9%

Recovery of recoverable accounts under production
sharing (capital expenditures)

50.6

25.2

(25.3)(50.1%)

Recoverable accounts under production sharing(operating expenditures)(14.4)(25.2)(10.7)

74.5%

Income taxes paid

(213.2)(314.7)(101.5)

47.6%

8.9

27.0

18.1

202.6%Net cash provided by operating activities

171.2

211.3

40.1

23.4%

Purchase of tangible fixed assets(25.0)(40.2)(15.2)

61.0%

Purchases of marketable securities/investment securities
and proceed from sales of marketablesecurities/investment securities (Net)(43.7)(74.8)(31.0)

70.9%

Investment in recoverable accounts under production
sharing (capital expenditures)(58.6)(64.0)

(5.4)

9.3%

47.3

0.0

(47.2)(99.9%)Net cash used in investing activities(80.1)(179.0)(98.9)

123.6%Net cash used in financing activities(24.9)(50.6)(25.6)

102.5%Cash and cash equivalents at end of the period

252.1

210.2

(41.8)(16.6%)

Other

Other

27

Change%ChangeRevision of Financial Forecasts for the year ending March 31, 2009
‐ Assumptions
1Q(actual)

2Q

2nd half

Full year

Crude oil price (Brent)($/bbl)

123.0

115.0

95.0

107.0

Exchange rate (yen/US$)

104.6

105.0

100.0

102.4

(Nov. 11, 2008)

1st half (actual)

2nd half

Full year

Crude oil price (Brent)($/bbl)

119.9

65.0

92.5

Exchange rate (yen/US$)

106.1

95.0

100.6

(Aug. 8 , 2008)‐ Financial Forecasts for the year ending March 31, 2009
Previous forecasts

Revised forecasts(Aug. 8, 2008)(Nov. 11, 2008)% Change

1,314.0

1,153.0(161.0)(12.3%)

Operating income (billions of yen)

850.0

723.0

(127.0)(14.9%)

Ordinary income (billions of yen)

819.0

692.0

(127.0)(15.5%)Net income (billions of yen)

177.0

150.0

(27.0)(15.3%)Net Sales (billions of yen)

‐ Dividend per share
End of 2Q

28

ChangeYear ended March 31, 2009 (yen)

4,000

End of fiscal
year (forecast)

Toal (forecast)

4,000

8,000