This document has been translated from Japanese original for reference purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the original
shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any otherforms of damages arising from the translation.

To Those Shareholders with Voting Rights:

Disclosure on the Internet accompanying
the Notice of the 11th Ordinary General Meeting of Shareholders

11th Fiscal Year (April 1, 2016 to March 31, 2017)(1) Notes to Consolidated Financial Statements(2) Notes to Non-consolidated Financial Statements

INPEX CORPORATIONThe content of this document is posted on the website of INPEX CORPORATION (“the Company”)(http://www.inpex.co.jp/english/), pursuant to laws, regulations, and Article 27 of the Articles of Incorporation of
the Company.

1

Notes to Consolidated Financial Statements[Basis of Presenting Consolidated Financial Statements]
1. Scope of consolidation(1) Number of consolidated subsidiaries and names of major consolidated subsidiaries
Number of consolidated subsidiaries: 64
Names of major subsidiaries;
Japan Oil Development Co., Ltd., INPEX Alpha, Ltd., INPEX Natuna, Ltd., INPEX Sahul, Ltd., INPEXSouthwest Caspian Sea, Ltd., INPEX Gas British Columbia Ltd., JODCO Onshore Limited, INPEX North
Caspian Sea, Ltd., INPEX Browse, Ltd., INPEX Holdings Australia Pty Ltd, INPEX Ichthys Pty Ltd,INPEX Oil & Gas Australia Pty Ltd and INPEX Masela, Ltd.
TEIKOKU OIL LIBYA UK LTD has been excluded from the scope of consolidation from this fiscal year
due to completion of liquidation.
(2) Names of major non-consolidated subsidiaries
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V. and TELNITE CO., LTD.
Reason for exclusion from the scope of consolidation
Those companies are not consolidated because their total assets, total net sales, total net income (the equity
portion) and total retained earnings (the equity portion) do not have significant impact on the consolidated
financial statements.
(3) Name of an entity that is not accounted for as our subsidiary even though the Company owns the majority
vote
Ichthys LNG Pty Ltd
Reason for not accounted for as our subsidiary
The Company owns the majority vote of Ichthys LNG Pty Ltd through INPEX Holdings Australia Pty Ltd.
However, since both parties’ affirmative votes are required for important resolutions based on theshareholders agreement between INPEX Holdings Australia Pty Ltd and TOTAL E&P Holding Ichthys,
Ichthys LNG Pty Ltd is considered to be an affiliate accounted for by the equity method.
2. Application of equity method(1) Number of non-consolidated subsidiaries and affiliates accounted for by the equity method and names ofmajor non-consolidated subsidiaries and affiliates accounted for by the equity method
Number of non-consolidated subsidiaries accounted for by the equity method: None
Number of affiliates accounted for by the equity method: 20
Names of major affiliates:
Angola Block 14 B.V., MI Berau B.V., Angola Japan Oil Co., Ltd., INPEX Offshore North Campos, Ltd.
and Ichthys LNG Pty Ltd(2) Names of non-consolidated subsidiaries and affiliates not accounted for by the equity method
Names of major non-consolidated subsidiaries and affiliates:
Sakata Natural Gas, Co., Ltd., Teikoku Oil de Burgos, S.A. de C.V., TELNITE CO., LTD. and Tangguh
project management Co., Ltd.
Reason for not applying the equity method
These subsidiaries and affiliates are not accounted for by the equity method because their total net income(the equity portion) and total retained earnings (the equity portion) do not have significant impact on the
consolidated financial statements.
(3) Procedures for application of the equity method
Regarding affiliates accounted for by the equity method having a different closing date from the consolidated
closing date, the Company used the financial statements of each affiliate prepared as of its closing date. For
certain affiliates, however, the Company used financial statements prepared for consolidation purposes as of
the consolidated closing date.
3. Closing dates for the fiscal year of consolidated subsidiaries
For the 48 companies for which the closing dates differ from the consolidated closing date, including, but notlimited to, INPEX Sahul, Ltd. and INPEX Masela, Ltd., the Company uses the financial statements for the year
ended December 31.
However, the necessary adjustments have been made to the financial statements of those companies to reflect
any significant transactions made between the Company's closing date and those of the consolidated
subsidiaries.
2

For the 10 companies including, but not limited to, Japan Oil Development, Co., Ltd., INPEX Southwest
Caspian Sea, Ltd., INPEX North Caspian Sea, Ltd., INPEX Holdings Australia Pty Ltd and INPEX Ichthys Pty
Ltd, we use their financial statements for the year ended on the consolidated closing date even though theirclosing date is December 31.
4. Accounting policies(1) Valuation method for significant assets(a) Securities
Other securities
With a determinable market value
Other securities with a determinable market value are stated at fair value with any changes in
unrealized holding gain or loss, net of the applicable income taxes, included directly in net assets.
Cost of securities sold is determined by the moving-average method.
Without a determinable market value
Other securities without a determinable market value are stated at cost determined by themoving-average method.
(b) Derivatives
Fair value(c) Inventories
Overseas inventories
Carried mainly at cost, determined by the average cost method (balance sheet value is carried at thelower of cost or market)
Domestic inventories
Carried mainly at cost, determined by the moving-average method (balance sheet value is carried at
the lower of cost or market)(2) Depreciation method of significant depreciable assets(a) Tangible fixed assets (except leased assets)
Depreciation of overseas mining facilities is mainly computed by the unit-of-production method. For
other tangible fixed assets, straight-line method of depreciation is applied. Useful lives of significant
fixed assets are as follows:
Buildings and structures:
2-60 years
Wells:
3 years
Machinery, equipment and vehicles:
2-22 years(b) Intangible assets (except leased assets)
Exploration and development rights
Exploration and development rights at the exploration stage are fully amortized in the consolidated
fiscal year. Such rights which are at the production stage are amortized by the unit-of-production
method.
Mining rights
Mining rights are mainly amortized by the unit-of-production method.
Other
Other intangible assets are mainly amortized by the straight-line method.
Software for internal use is amortized by the straight-line method over 5 years.
(c) Leased assets
Leased assets for financing lease transactions whose ownership are not to be transferred
Depreciation of these assets is calculated based on the straight-line method over the lease period
assuming no residual value.
(3) Basis for significant allowances(a) Allowance for doubtful accounts
Allowance for doubtful accounts is provided at an amount determined based on the historical experienceof bad debt with respect to ordinary receivables, plus an estimate of uncollectible amounts determined byreference to specific doubtful receivables from customers which are experiencing financial difficulties.
(b) Allowance for recoverable accounts under production sharing
Allowance for recoverable accounts under production sharing is provided for probable losses on specificinvestments made under production sharing contracts.
(c) Allowance for investments in exploration
Allowance for investments in exploration is provided for future potential losses on investments in
exploration companies at an estimated amount based on the net assets of the investees.
(d) Provision for exploration projects
3

Provision for exploration projects is provided for future expenditures of consolidated subsidiaries at the
exploration stage based on a schedule of investments in exploration.
(e) Accrued bonuses to officers
Accrued bonuses to officers are provided at the expected payment amount for the fiscal year.
(f) Provision for loss on business
Provision for loss on business is provided for future potential losses on crude oil and natural gas
development, production and sales business individually estimated for each project.
(g) Accrued special repair and maintenanceAccrued special repair and maintenance are provided for planned major repair and maintenance activities
on tanks in certain subsidiaries at the amounts accumulated through the next activity.
(4) Accounting for retirement benefits(a) Method of attributing expected retirement benefits to proper periods
When calculating retirement benefit obligations, the benefit formula method is used for attributing
expected retirement benefits to periods through March 31, 2017. Because certain subsidiaries areclassified as small enterprises, a simplified method (the amount which would be required to be paid if allactive employees voluntarily terminated their employment as of the balance sheet date) is applied for the
calculation of the retirement benefit obligation for those subsidiaries.
(b) Method of recognizing for actuarial differences
Actuarial gains and losses are charged or credited to income as incurred.
(5) Other basis of presenting consolidated financial statements(a) Translation of consolidated subsidiaries’ significant assets and liabilities denominated in foreign
currencies into yen in preparation of the consolidated financial statements
Monetary assets and liabilities denominated in foreign currencies are translated into yen at the exchange
rates prevailing at the balance sheet date. The resulting exchange gain or loss is credited or charged toincome. The revenue and expense accounts of the overseas subsidiaries are translated into yen at the
average rates of exchange during the period. The balance sheet accounts are translated into yen at therates of exchange in effect at the balance sheet date. Translation differences are presented as a componentof translation adjustments and non-controlling interests.
(b) Accounting for major hedge transactions
1) Hedge accounting
The special treatment is applied to the interest rate swaps that meet certain criteria. For certain
equity-method affiliates, the deferred hedge accounting method is adopted.
2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest payments on borrowings
3) Hedging policy
Derivative transactions are limited to the scope of actual demand, and the Company does not engage
in speculative derivative transactions.
4) Hedge effectiveness assessment method
The Company does not perform hedge effectiveness assessment of interest rate swap transactions
since the special treatment is applied.
(c) Amortization of Goodwill
Goodwill is amortized by the straight-line method over 20 years.
(d) Consumption tax
Transactions subject to the consumption tax are recorded at amounts exclusive of the consumption tax.
(e) Recoverable accounts under production sharing
Cash investments made by the Company during exploration, development and production phases undera production sharing contract are recorded as “Recoverable accounts under production sharing” so longas they are recoverable under the terms of the relevant contract. When the Company receives crude oiland natural gas in accordance with the contract, an amount corresponding to the purchase costs of the
products (i.e., a cost recovery portion of the investments) is released from this account.
[Change in the Presentation](Consolidated Statement of Income)"Gain on sales of investment securities", previously included in "Other" in other income, is presented
separately since it has become more significant.
"Provision of allowance for doubtful accounts", previously included in "Other" in other expenses, is presented
separately since it has become more significant.
4

[Changes in Accounting Estimates](Change in useful life)
The Company reviewed the period of economic estimated use of structures (pipelines) considering the
progress of initiatives on strengthening our gas supply chain defined in the "Medium- to Long-Term Vision",
actual use records and others since the Toyama Line commences operation this fiscal year. It was confirmedthat they could be used longer than their conventional useful lives, which had been based on the method
prescribed in the Corporation Tax Act, and the Company has changed their useful lives from the year ended
March 31, 2017.
As a result, compared with the conventional method, operating income, ordinary income and income before
income taxes for the year ended March 31, 2017 increased by ¥7,171 million, respectively.

5[Notes to Consolidated Balance Sheet]
1. Assets provided as collateral are as follows:(Collateralized assets)
Millions of yen
Cash and deposits
222
Inventories
8,533
Land
149
Construction in progress
1,119,049
Investment securities
62,492Long-term loans receivable
131,261
Other
10,147
Total
1,331,855
The above is mainly related to Ichthys LNG Project Finance, and the others which pledged as collateral for
liabilities of affiliates excluding the Ichthys LNG Project Finance.
2. Accumulated depreciation
Accumulated depreciation of tangible fixed assets is ¥762,321 million.
3. Contingent liabilities(1) The Company and its consolidated subsidiaries are contingently liable as guarantors of indebtedness of thefollowing companies:
Millions of yen
Ichthys LNG Pty Ltd*1
562,236
Tangguh Trustee*2
18,997
Sakhalin Oil and Gas Development Co., Ltd.
2,046
Japan Canada Oil Sands Limited
1,683
Oceanic Breeze LNG Transport S. A.
216
Employees (housing loans)
51
Total
585,233*1 Debt for investment funds of the Ichthys LNG Project.
*2 Debt for investment funds of Tangguh LNG Project for which the Company participates through MI
Berau B.V. and MI Berau Japan Ltd.(Of the funds, for loans relating to the construction of Train-3, only
the portion guaranteed by the Company in accordance with the ratio of participating interest (¥4,320
million) is stated.)(2) Guarantee for derivatives
Ichthys LNG Pty Ltd¥(212) million
The aforementioned derivative transactions are utilized to hedge exchange rate fluctuation risk regarding
payments of development costs for the Ichthys LNG Project. The amount is valuation gain (loss) on thederivatives.
(3) Completion guarantee
In connection with the Ichthys LNG project financing, the Company and other project participants provide
lenders with a guarantee of liabilities during the construction phase based on each participating interest in
addition to collateralizing its assets.
The portion guaranteed by the Company at the end of this fiscal year is ¥903,862 million.

6

[Notes to Consolidated Statement of Income]
The Company groups mining area and other assets as a basic unit that generates cash inflows independently ofother groups of assets. Due to impact from deteriorating business environments based on such factors as the drop in
oil prices, the Company reduced the respective carrying amounts of the assets listed below to recoverable amounts,
posting the reductions as impairment loss.
(Millions of yen)
Impairment
Use
Location
Classification
loss
Buildings and structures
225
Wells
1,689
Assets related to the
Machinery, equipment and vehicles
421
shale gas project in the British Columbia, Canada
Mining rights
268
Horn River area
Other
27
Subtotal
2,630
Buildings and structures
650
Wells
11
Machinery, equipment and vehicles
906
Assets related to
Akita City, Akita, etc.
442
Land
Yabase Oil Field
17
Other
Subtotal
2,027
Assets related to SouthNatuna Sea Block B

Republic of Indonesia

Exploration and development rights

Other
Total

1,702
6
6,366

The recoverable amount of the assets related to the shale gas project in the Horn River area is reasonably estimatedby discounting the future cash flows at a rate of 8.3%. The recoverable amount of the assets related to South NatunaSea Block B is estimated at zero. The recoverable assets of the land related to Yabase Oil Field is estimated by the
net realized value of the assets (of which based on reasonably adjusted the valuation amount for real estate tax
purposes), and the others are estimated at zero.
[Notes to Consolidated Statement of Changes in Net Assets]
1. Type and number of shares issued and treasury stock
Balance as ofApril 1, 2016

Increase

Decrease(Shares)
Balance as ofMarch 31, 2017

Number of shares－－
Common stock
1,462,323,600
1,462,323,600－－
Class A stock
1
1
－
－
Total
1,462,323,601
1,462,323,601
Treasury stock－
Common stock
1,966,400
100
1,966,500－
Total
1,966,400
100
1,966,500(Note) The increase of 100 shares in treasury stock of common stock was due to purchase of less-than-one-voting-unit
shares.

7

2. Dividends(1) Cash dividends paid
Cash dividends
paid(Millions of yen)

Dividends
per share(Yen)

Common stock

13,143

9March 31, 2016

June 29, 2016

Class A stock

0

3,600

March 31, 2016

June 29, 2016

Board of directors’ Common stock
meetingNovember 11, 2016 Class A stock

13,1439

September 30, 2016

December 1, 2016

0

3,600

September 30, 2016

December 1, 2016

Resolution
Ordinary general
meeting ofshareholders
June 28, 2016

Type of share

Record date

Effective date(2) Dividends, whose record date was in the year ended March 31, 2017, and whose effective date will be in thenext fiscal year
Cash dividends Dividends
Source ofpaid
Resolution
Type of shareper share
Record date
Effective datedividends(Millions of yen)
(Yen)
Ordinary general
Retained
Common stock
13,143
9 March 31, 2017 June 28, 2017
meeting of
earnings
shareholders
Retained
Class A stock03,600 March 31, 2017 June 28, 2017
June 27, 2017
earnings

8

[Notes to Financial Instruments]
1. Status of financial instruments
The Company raises funds for oil and gas development and production, construction or expansion of gas
infrastructure primarily from cash flow on hand and from bank loans.
In line with the criteria for trading and credit exposure management, the Company properly analyzes the credit
status of trading partners for reduction of default risks related to accounts receivable-trade of its clients. For
marketable securities and investment securities exposed to market price fluctuation risk, analysis of market
values is regularly reported to the Executive Committee.
Although the Company generally borrows with variable interest rates, some loans are with fixed interest rates
including interest rate swap transactions depending on the nature of each project. For exchange rate fluctuation
risk related to assets and liabilities denominated in foreign currencies, the Company maintains the position
between assets and liabilities in foreign currencies, and manages exchange fluctuation risk through derivativetransactions such as foreign exchange forwards and others, as necessary, based on the Company’s policy. For
derivative transactions, the Company follows internal regulations.
2. Fair value of financial instruments
Carrying value on the consolidated balance sheet as of March 31, 2017, fair value and the difference between
them are as shown below.

(1) Cash and deposits(2) Accounts receivable-trade(3) Marketable securities andinvestment securities
Other securities
Total assets(1) Short-term loans(2) Long-term debt
Total liabilities
Derivatives*

Carrying value
652,61472,36458,801
783,780
44,252643,432
687,68443

652,696
72,364(Millions of yen)
Difference81－

58,801
783,861
43,967635,082
679,049
43

－
81
(285)
(8,349)(8,635)－

Fair value*Net claims and debts arising from derivative transactions are presented on a net basis. In case the total amountis a debt amount, the above figure is negative.

9

Note 1: Methods of calculating the fair value of financial instruments
Assets(1) Cash and deposits
The fair value of current portion of long-term time deposits included in cash and deposits, is calculated
by applying a discount rate to the total of principal and interest. The discount rate is based on theassumed interest rate if a similar new deposit is entered into. For the other cash and deposits, the relevant
carrying value is used since the item is settled in a short period of time and its market value is almost thesame as the carrying value.
(2) Accounts receivable-trade
Since the item is settled in a short period of time and its fair value is almost the same as the carrying
value, the relevant carrying value is used.
(3) Marketable securities and investment securities
The fair value of shares is determined by the market prices of exchanges, and the fair value of bonds isdetermined by market prices of exchanges or the prices presented by financial institutions.
Liabilities(1) Short-term loans
The estimated fair value of current portion of long-term debt included in short-term loans, is calculatedby the same method as (2) Long-term debt. For the other short-term loans, the relevant carrying value isused since the item is settled in a short period of time and its market value is almost the same as the
carrying value.
(2) Long-term debt
The estimated fair value of long-term debt is calculated by applying a discount rate to the total ofprincipal and interest. The discount rate is based on the assumed interest rate if a similar new loan isentered into.
Derivative Transactions
Fair value is the price obtained from the counterparty financial institutions.
Fair value of derivatives for which special treatment of interest rate swaps is applied is included in theestimated fair value of the long-term debt since the interest rate swap is treated together with long-term
debt subject to hedging (refer to Liabilities (2) above).
Note 2: Unlisted securities (carrying value on the consolidated balance sheet: ¥29,260 million), and stocks ofsubsidiaries and affiliates (carrying value on the consolidated balance sheet: ¥163,526 million) are
assumed to have no quoted market prices and it is extremely difficult to determine their fair value.
Accordingly, these financial instruments are not included in “Assets (3) Marketable securities andinvestment securities.” For shares of exploration companies, an allowance for investments in
exploration is provided at an estimated amount based on the financial position of the investees.
[Notes to Per Share Information]
1. Net assets excluding non-controlling interests per share:
2. Net income per share:

10¥2,015.38¥31.61

Notes to Non-Consolidated Financial Statements[Significant Accounting Policies]

1. Valuation method for assets(1)
Valuation method for securities
Shares of subsidiaries and affiliates
Other securities
With a determinable market value

Without a determinable market value(2)

Valuation method for derivatives
Derivatives(3)

Valuation method for inventories
Finished goods, raw materials and supplies
Work in process and partly-finishedconstruction

2. Depreciation method of fixed assets
Tangible fixed assets (except leased assets)

Intangible assets (except leased assets)
Leased assets

3. Basis for allowances
Allowance for doubtful accounts

Allowance for recoverable accounts under
production sharing
Allowance for investments in exploration
Accrued bonuses to officers
Accrued retirement benefits to employees

Provision for loss on business
Provision for loss on business of subsidiaries
and affiliates

Stated at cost determined by the moving-average method
Stated at fair value with any changes in unrealized holding gain or
loss, net of the applicable income taxes, included directly in net
assets. Cost of securities sold is determined by themoving-average method.
Stated at cost determined by the moving-average method
Fair value
Carried at cost (balance sheet value is carried at the lower of costor market)
Determined by the moving-average method
Stated at identified cost method

Straight-line method of depreciation is applied.
Useful lives of significant fixed assets are as follows:
Buildings
2-50 years
Structures
3-60 years
Wells
3 years
Machinery and equipment
2-22 years
Straight-line method of amortization is applied.
Goodwill is amortized over 20 years.
Software for internal use is amortized over 5 years.
Depreciation of leased assets for financing lease transactions
whose ownership are not to be transferred is calculated based on
the straight-line method over the lease period assuming noresidual value.
Allowance for doubtful accounts is provided at an amountdetermined based on the historical experience of bad debt withrespect to ordinary receivables, plus an estimate of uncollectible
amounts determined by reference to specific doubtful receivablesfrom customers which are experiencing financial difficulties.
Allowance for recoverable accounts under production sharing isprovided for probable losses on specific investments made under
production sharing contracts.
Allowance for investments in exploration is provided for future
potential losses on investments in exploration companies at an
estimated amount based on the net assets of the investees.
Accrued bonuses to officers are provided at expected payment
amount for the fiscal year.
Accrued retirement benefits to employees are provided at theamount calculated based on the expected retirement benefit
obligation and the estimated value of pension plan assets at theend of this period.
Actuarial gains and losses are charged or credited to income as
incurred.
Provision for loss on business is provided for future potential
losses on crude oil and natural gas development, production andsales business individually estimated for each project.
Provision for loss on business of subsidiaries and affiliates isprovided for future potential losses on business operations ofsubsidiaries and affiliates at an estimated amount based on thefinancial positions of these companies.

114. Accounting for hedge transactions
Hedge accounting
Hedging instruments and hedged items
Hedging policy
Hedge effectiveness assessment method

The special treatment is applied to interest rate swaps.
Hedging instruments: Interest rate swap transactions
Hedged items:
Interest payments on borrowings
The nominal amount of the derivative transaction is limited towithin the scope of actual demand, and the Company does notengage in speculative derivative transactions.
The Company does not perform hedge effectiveness assessmentof interest rate swap transactions since the special treatment isapplied.

5. Other basis of presenting non-consolidated financial statements
Consumption tax
Transactions subject to the consumption tax are recorded at
amounts exclusive of the consumption tax.
Recoverable accounts under production
Cash investments made by the Company during exploration,
sharingdevelopment and production phases under a production sharing
contract are recorded as “Recoverable accounts under production
sharing” so long as they are recoverable under the terms of therelevant contract. When the Company receives crude oil andnatural gas in accordance with the contract, an amountcorresponding to the purchase costs of the products (i.e., a cost
recovery portion of the investments) is released from this account.

12[Changes in Accounting Estimates](Change in useful life)
The Company reviewed the period of economic estimated use of structures (pipelines) considering the progress of
initiatives on strengthening our gas supply chain defined in the "Medium- to Long-Term Vision", actual use records
and others since the Toyama Line commences operation this fiscal year. It was confirmed that they could be used
longer than their conventional useful lives, which had been based on the method prescribed in the Corporation Tax
Act, and the Company has changed their useful lives from this fiscal year. As a result, compared with theconventional method, operating income, ordinary income, and income before income taxes for this fiscal year
increased by ¥7,171 million, respectively.

13

[Notes to Non-Consolidated Balance Sheet]
1. Assets provided as collateral are as follows:
Investment in stock of subsidiaries and affiliates is ¥4,880 million.
The above is pledged as collateral for liabilities of affiliates.
The above is pledged as collateral for liabilities of affiliates.
2. Accumulated depreciation:
Accumulated depreciation of tangible fixed assets is ¥275,107 million.
3. Contingent liabilities(1) The Company is contingently liable as guarantors of indebtedness of the following companies:
Ichthys LNG Pty Ltd*1
INPEX North Caspian Sea, Ltd.
Tangguh Trustee*2
INPEX Trading, Ltd.
Sakhalin Oil and Gas Development Co., Ltd.
Japan Canada Oil Sands Limited
Oceanic Breeze LNG Transport S. A.
Employees (housing loans)
Teikoku Oil (North America) Co., Ltd.
Total

Millions of yen
562,236
95,42018,997
2,576
2,046
1,683
309
51
14
683,338*1 Debt for investment funds of the Ichthys LNG project*2 Debt for investment funds of Tangguh LNG Project for which the Company participates through MI Berau
B.V. and MI Berau Japan Ltd. (Of the funds, for loans relating to the construction of Train 3, only the
portion guaranteed by the Company in accordance with the ratio of participating interest (¥4,320 million) is
stated.)(2) Guarantee for derivatives
Ichthys LNG Pty Ltd¥(212) million
The aforementioned derivative transactions are utilized to hedge exchange rate fluctuation risk regarding
payments of development costs for the Ichthys LNG Project. The amount is valuation gain (loss) on thederivatives.
(3) Completion guarantee
In connection with the Ichthys LNG project financing, the Company and other project participants provide
lenders with a guarantee of liabilities during the construction phase based on each participating interest.
The portion guaranteed by the Company at the end of this consolidated fiscal year was ¥903,862 million.
4. Monetary assets and liabilities from/to subsidiaries and affiliates
Short-term monetary assets from subsidiaries and affiliates
Long-term monetary assets from subsidiaries and affiliates
Short-term monetary liabilities to subsidiaries and affiliates
Long-term monetary liabilities to subsidiaries and affiliates

Millions of yen
429,975
210,091
338,36530[Notes to Non-Consolidated Statement of Income]1. Transactions with subsidiaries and affiliates
Operating transactions
Net sales
Purchases
Other operating transactions
Transactions other than operating transactions

Millions of yen
36,2901,400
18,484
117,058

14

2. Impairment loss
The Company groups mining areas and other assets as a basic unit that generates cash inflows independentlyof other groups of assets. Due to impact from deteriorating business environments based on such factors as thedrop in oil prices, the Company reduced the respective carrying amounts of the assets listed below torecoverable amounts, posting the reductions as impairment loss.

Use

Assets related to
Yabase Oil Field(Millions of yen)
Impairment
Classification
loss
Buildings
118
Structures
532
Wells
11
Machinery, equipment and vehicles
906
Land
442
Other
17
Subtotal
2,027
6
2,033

Location

Akita City, Akita, etc.

Other
Total

The recoverable assets of the land related to Yabase Oil Field is estimated by the net realized value of theassets (of which based on reasonably adjusted the valuation amount for real estate tax purposes), and theothers are estimated at zero.

[Notes to Non-Consolidated Statement of Changes in Net Assets]
Type and number of treasury stock at end of this period
Shares
1,966,500

Common stock

15

[Notes to Tax Effect Accounting]Significant components of deferred tax assets and liabilities
Deferred tax assets
Allowance for investments in exploration
Loss on valuation of investment in stocks of subsidiaries and affiliates
Loss on valuation of investment securities
Accrued retirement benefits to employees
Provision for loss on business
Provision for loss on business of subsidiaries and affiliates
Asset retirement obligations
Accrued bonuses to employees
Allowance for doubtful accounts
Allowance for recoverable accounts under production sharing
Other
Total deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax liabilities
Unrealized holding gain on securities
Translation differences due to an application of purchase accounting method
Mine prospecting reserve
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax assets

16

Millions of yen
32,58831,819
2,382
1,860
824
2,119
882
604
11,548
1,045
3,482
89,158(70,696)
18,461
2,023
6,693
3,903
1,769
1,231
15,621
2,839

[Notes to Transactions with Related Parties]
Type

Name of related
party

Voting interest(Owned)INPEX Trading,Ltd.
INPEX North
Caspian Sea,
Ltd.

Directly 100.00%(Owned)-%Directly 45.00%(Owned)-%Description of
the business
relationship
Capitalsubscription
Serve theofficer
concurrently,
capitalsubscription

Transaction
detailSales of crude
oil (*1)
Loans of funds(*2)

Amounts(Millions ofyen)
35,065—Loans of funds(*2)—

Loans of funds(*3)—

Loans of funds(denominatedin US$)(*4)—

Accounts
Accounts
receivable-tradeLong-term loans
receivable fromsubsidiaries andaffiliates
Short-term loans
receivable fromsubsidiaries andaffiliates
Long-term loans
receivable fromsubsidiaries andaffiliates
Short-term loans
receivable fromsubsidiaries andaffiliates
Long-term loans
receivable fromsubsidiaries andaffiliates

Subsidiary

Loans of funds(denominatedin US$)(*5)

2,218(in millions
of US$)
20

Long-term loans
receivable fromsubsidiaries andaffiliates

Loans of funds(denominatedin US$)(*6)—

Long-term loans
receivable fromsubsidiaries andaffiliates

Loans of funds(denominatedin US$)(*7)
Debt guarantee
(*8)

17

93,801 Short-term loans(in millions receivable fromof US$) subsidiaries andaffiliates
856
95,420—

Balance(Millionsof yen)
4,070
35,367

2,242

7,400

5,204
(in
millionsof US$)
46
10,408(inmillionsof US$)
92
60,221(inmillionsof US$)
536
38,877(inmillionsof US$)
346
126,901(inmillionsof US$)
1,131
—

Type

Name of related
party

Voting interest(Owned)Japan Oil
Development
Co., Ltd

Directly 100.00%(Owned)-%INPEXSouthwest
Caspian Sea,
Ltd.

Directly 51.00%(Owned)-%INPEX Gas
BritishColumbia Ltd.

Directly 45.09%(Owned)-%Description of
the business
relationship
Serve theofficer
concurrently,
capitalsubscription
Serve theofficer
concurrently,
capitalsubscription
Capitalsubscription

Transaction
detailCashmanagement(*9)

Deposits
received fromsubsidiaries andaffiliates

Balance(Millionsof yen)55,913

191,890—

Loans of funds(denominatedin CA$)(*11)

2,485 Short-term loans(in millions receivable fromof CA$) subsidiaries andaffiliates
31
22,381 Short-term loans(in millions receivable fromof CA$) subsidiaries andaffiliates
255

Loans of funds(denominatedin CA$)(*12)

19,287 Short-term loans(in millions receivable fromof CA$) subsidiaries andaffiliates
220

Directly 100.00% Capital(Owned)-% subscription

Loans of funds(denominatedin US$)(*13)— Short-term loans
receivable fromsubsidiaries andaffiliates

Serve theINPEX Holdings Indirectly
Australia
100.00% officer
Pty Ltd.
(Owned)-% concurrently,
capitalsubscription

Loans of funds(denominatedin US$)(*13)― Short-term loans
receivable fromsubsidiaries andaffiliates

INPEX Oil &Gas Australia
Pty Ltd.

Subscription ofshares(*14)

Teikoku Oil(North America)
Co., Ltd.

Directly 100.00% Capital(Owned)-% subscription

Loans of funds(denominatedin CA$)(*10)

Loans of funds(denominatedin US$)
(*13)

18

—

Accounts

Deposits
received fromsubsidiaries andaffiliates

SubsidiaryCashmanagement(*9)

Amounts(Millions ofyen)—

37,535(in millions
of US$)
346――

Long-term loans
receivable fromsubsidiaries andaffiliates

21,464(inmillionsof CA$)
255
18,516(inmillionsof CA$)
220
42,036(inmillionsof US$)
374
137,457(inmillionsof US$)
1,225—

38,078(inmillionsof US$)
339

Type

Name of related
party
Ichthys LNG Pty
Ltd

Affiliate

Description ofAmounts
Transaction
the business(Millions ofdetailyen)
relationship
Serve
the
officer
562,236
Indirectly 62.25%
Debt guarantee(Owned)-% concurrently(*8)
903,862
Debt guarantee
(*15)
(212)
Debt guarantee(*16)
Voting interest(Owned)―Balance(Millionsof yen)
―

―

―

―

―

Accounts

Note 1: The Company sells crude oil to INPEX Trading, Ltd. based on its market price, in accordance with thesales of crude oil contract.
Note 2: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in JPY) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 17, 2024. The Company did not accept any collateral.
Note 3: The Company determines the interest rate based on its market interest rates and other contracts upon loansof funds (denominated in JPY) in a reasonable and appropriate manner. The contract due date and thepayment due date are December 31, 2024. The Company did not accept any collateral.
Note 4: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in US$) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 17, 2019. The Company did not accept any collateral.
Note 5: The Company determines the interest rate based on its market interest rates and other contracts upon loansof funds (denominated in US$) in a reasonable and appropriate manner. The contract due date and thepayment due date are December 31, 2024. The Company did not accept any collateral.
Note 6: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in US$) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 17, 2028. The Company did not accept any collateral.
Note 7: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in US$) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 31, 2017. The Company did not accept any collateral.
Note 8: This refers to the guarantee that was set against the loans from financial institutions as a fund for businessdevelopment. Amount of transactions represents the balance of guarantees at the end of this period.
Note 9: The Company adopts a cash management system (hereinafter “CMS”) for the purpose of efficient fundmanagement within the Group. The amount of funds transactions through the CMS are not stated above
because it is difficult to identify the amounts by transaction details. The Company determines the interest
rate based on its market interest rate.
Note 10: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in CA$) in a reasonable and appropriate manner. There is no loan balance as of the end of
this period because the loan was repaid on December 31, 2016. The Company did not accept any
collateral.
Note 11: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in CA$) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 31, 2017. The Company did not accept any collateral.
Note 12: The Company determines the interest rate based on its market interest rates upon loans of funds(denominated in CA$) in a reasonable and appropriate manner. The contract due date and the payment due
date are December 31, 2017. The Company did not accept any collateral.
Note 13: With regard to loans of funds (denominated in US$), the Company adopts CMS. The amount of funds
transactions through the CMS are not stated above because it is difficult to identify the amounts bytransaction details. The Company determines the interest rate based on its market interest rates upon loansof funds in a reasonable and appropriate manner. The Company did not accept any collateral.
Note 14: When INPEX Oil & Gas Australia Pty Ltd. made a capital increase through shareholder allocation, theCompany undertook it at US$1 per share.
Note 15: This refers to the completion guarantee provided to lenders based on each participating interest of theCompany in connection with the Ichthys LNG project financing. Amount of transactions represents thebalance of guarantees provided by the Company at the end of this period.

19Note 16: This refers to the guarantee of derivatives provided for derivative transactions which are utilized to hedge
exchange rate fluctuation risk regarding payments of development costs for the Ichthys LNG Project.
Amount of transactions represents valuation gain (loss) on the derivatives.
[Notes to “Per Share” information]
1.
Net assets per share: ¥1,646.22
2.
Net income per share: ¥60.89

20