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JOGMEC Provides Equity Financing to
JX and INPEX's Exploration Project offshore Malaysia

February 20, 2015

 JOGMEC (President: Hirobumi Kawano) announced today that it will provide equity financing to JX Nippon Oil & Gas Exploration (Deepwater Sabah) Limited and INPEX Offshore South West Sabah Limited, established by JX Nippon Oil & Gas Exploration Corporation (“JX”) and INPEX CORPORATION (“INPEX”) respectively, which acquired participating interests in the exploration Deepwater Block R offshore East Malaysia .
 In January 2012, JX and INPEX announced they have entered into a Production Sharing Contract and commenced the exploration activities for the block through their subsidiaries, namely JX Nippon Oil & Gas Exploration (Deepwater Sabah) Limited (Operator) and INPEX Offshore South West Sabah Limited. The subsidiaries hold 27.5% interest respectively and the remaining 45% interest is held by SANTOS SABAH BLOCK R LIMITED (20%) and PETRONAS CARIGALI SDN. BHD (25%), the exploration and production subsidiary of PETRONAS, the national oil company of Malaysia.

 JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the subsidiaries of JX and INPEX for the project.

 A number of oil and gas fields have been discovered offshore East Malaysia, and this Block is also considered to have large potential. Through the support of JOGMEC, it is expected to enhance upstream activities for JX and INPEX in Malaysia being one of their focusing areas as well as reinforce Japan’s energy security when successful.

Background Information

Corporate Data JX Nippon Oil & Gas Exploration (Deepwater Sabah) Limited
Date of Establishment November 4, 2011
President Mr. Hironori Wasada
Shareholders after JOGMEC's funding JX (Voting rights more than 50%)
JOGMEC (Voting rights less than 50%)
Corporate Data INPEX Offshore South West Sabah Limited
Date of Establishment January 4, 2012
President Mr. Kenji Kawano
Shareholders after JOGMEC's funding INPEX (Voting rights more than 50%)
JOGMEC (Voting rights less than 50%)

Participating Interest

JX Nippon Oil & Gas Exploration (Deepwater Sabah) Limited * 27.5%
INPEX Offshore South West Sabah Limited 27.5%
SANTOS SABAH BLOCK R LIMITED 20.0%
PETRONAS CARIGALI SDN. BHD 25.0%
* Operator

JOGMEC Assistance

Date of Approval Jan 14, 2015
Estimated Amount of Equity Financing (JX and INPEX combined) approximately JPY 22.6Billion
Note Approval has been made in accordance with JOGMEC’s technical, economic, and business-environment criteria and the consent from the Minister of Economy, Trade and Industry has been obtained.

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