Japan Petroleum Exploration : （訂正）Integrated Report 2021

Japan Petroleum Exploration Co., Ltd.

Integrated Report

2021

For the Year Ended March 31, 2021

Index

Mission and Purpose

Strategy

Value Creation Through

Initiatives to

Financial and Other Information

Business Activities

Support Value Creation

Corporate Vision• The JAPEX Group Code

The JAPEX Group's

E&P Business ������������ 23

Sustainability Management........................

33

Financial Highlights....................................

50

of Ethics and Conduct...............................

01

Value Creation Process..............................

09

Infrastructure/Utility Business

����� 26

Health, Safety and Environment (HSE)......

36

Non-financial Highlights

51

JAPEX's History.........................................

02

Special Feature: JAPEX2050

New Business Development ������ 29

Human Resource Development

Glossary *

52

Toward a Carbon-Neutral Society

10

JAPEX Our Strengths.................................

03

and Diversity .............................................

38

Financial Data

53

• GHG Emission Reduction Targets

11

At a Glance................................................

04

Health Management

Corporate Data

83

• Focused Efforts to Realize a

and Good Working Environment................

40

President's Message .................................

05

Carbon-Neutral Society

12

* Items marked by the book icon are explained in the

Risk Management......................................

41

"Glossary" on page 52.

• Interview with an Outside Director

14

Compliance and Respect for

Climate Change Response........................

15

Human Rights...........................................

43

• Managing Executive Officer's

Corporate Governance..............................

44

Message..............................................

15

• Outside Director's Message................

45

Long-term Vision 2030 and Medium-term

Business Plan 2018-2022..........................

18

Results and Forecasts by Business for

Disclosure Systems

Medium-term Business Plan Targets

19

Finance & Accounting Dept.

Business- and Finance-related Data

Non-financial Data

Director's Message

20

Integrated

Report

https://www.japex.co.jp/en/ir/library/integratedreport/

Editorial Policy

Organizations Covered by this Report

Note: From

this year's report forward, we will not issue a physical report,

Since the fiscal year ended

March 31, 2016, we have issued our

This report covers Japan Petroleum Exploration Co., Ltd. (JAPEX),

only a

PDF version.

Corporate Report, which integrated the previous Annual Report

and its 18 consolidated subsidiaries and other Group companies.

and CSR Report. We have positioned this report as an important

communication tool with all our stakeholders, including investors.

Reporting Period

From this year, we changed the name to the Integrated Report to

Fiscal 2020 started on April 1, 2020 and ended March 31, 2021.

Website

Website

make clear its position as an integrated report. We aim to convey

Some statements include data before March 31, 2020 or after

IR

Sustainability

in an easy to understand way information about our initiatives to

April 1, 2021.

sustainable enhance our corporate value while highlighting their

connection to our financial

and non-financial data.

Issuing Date

In Integrated Report 2021, the special feature explores our car-

October 2021 (Next issue: October 2022)

bon neutral direction and objective JAPEX2050 that was

announced in May 2021. We also enhanced explanations regard-

Disclaimer

ing the Company's mission of ensuring a stable energy supply,

This Integrated Report includes past and current facts about

risk management initiatives that support value creation, and

JAPEX and its affiliate firms, their plans and prospects as of the

corporate governance.

issuing date, as well as forecasts based on their business plans

Reference Guidelines

and corporate management policies.

These forecasts represent management's assumptions or deci-

METI, "Guidance for Collaborative Value Creation"

sions based on information currently available. Readers should be

https://www.japex.co.jp/en/ir/

https://www.japex.co.jp/en/sustainability/

The Value Reporting Foundation (VRF)

aware that actual results may differ from these forecasts due to

IIRC, "International Integrated Reporting

changes in the business environment.

Framework"

JAPEX Integ ra ted Report 2021

Index	Mission and Purpose	Strategy	Value Creation Through Business Activities	Initiatives to Support Value Creation	Financial and Other Information

Corporate Vision

Contribute to society through stable supply of

energy and address social issues towards the

Sustainable Development Goals.

Explore, develop, produce and distribute crude oil and natural gas at home and abroad.

Further strengthen the natural gas supply chain, built on our domestic infra- structure, by combining the electric power supply business.

Contribute to resolving energy and climate change related challenges towards a sustainable society through developing and commercializing new technolo- gies, drawing on our expertise.

Achieve sustainable growth and maximize corporate value, while placing top priority on maintaining trust with all stakeholders.

The JAPEX Group Code of

Ethics and Conduct

To realize our Corporate Vision and remain a company trusted by society, we hereby establish the JAPEX Group Code of

Ethics and Conduct, which provides corporate ethics standards and principles of action to be adhered to by all officers and employees.

1. Comply with applicable laws and regulations, and respect international codes of conduct.
2. Place top priority on HSE (health, safety and environment).
3. Strive to maintain trust with stakeholders and to contribute to society.
4. Respect the human rights of all people.
5. Make efforts to create a good working environment.
6. Engage in fair and free competition and maintain appropriate trading practices.
7. Maintain sound and transparent relationships with politicians, political parties and government officials/agencies.
8. Resolutely terminate any and all relationships with anti-social forces.
9. Pay careful attention to managing and protecting confidential information and personal/clients' data.

JAPEX Integ ra ted Report 2021

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Index	Mission and Purpose	Strategy	Value Creation Through Business Activities	Initiatives to Support Value Creation	Financial and Other Information

Who We Are

JAPEX's History

Since its founding, JAPEX has focused on the stable supply of oil and natural gas and the development of E&P technologies.

• In light of changing structural energy demands, we will continue with our aim of growing into the Comprehensive Energy Company by promoting the creation of electric power and environmentally friendly businesses.

Started as a national policy concern to promote domestic oil and gas exploration

Put its business on track by		Expanded business regions		Aiming to grow as an
successively discovering oil		and promoted business		comprehensive energy company
fields in Japan		diversification

1950s-	1970s-	1990s-	2010s-
1960s	1980s	2000s

1955	Founded as a government-owned company by the	1972	Discovered the Aga-oki oil and gas field in Niigata,
	Law of Japan Petroleum Exploration Co., Ltd.		the first ever offshore oil field discovered since the
1956	Discovered the Biratori oil field in Hokkaido, the		establishment of Japex Offshore Ltd.
	first oil field discovered by JAPEX (in production	1989	Discovered Yufutsu Oil and Gas Field in Hokkaido
	from 1956 to 1961)		(In production from 1996)

2003 Commenced commercial production of bitumen by the SAGD method in Hangingstone leases in Canada (Ended our operation in 2021)

2007 Participated in the Kangean Project in Indonesia

1996 Commenced operation of the Niigata-Sendai Gas Pipeline

2000 Commenced transportation of LNG tank containers on rail

1999 Contracted by the government for the Nankai Trough exploratory drilling business, the world's first marine methane hydrate survey

2008 Participated in funding Japan CCS Co., Ltd., which was established with the aim of creating practical applications for CCS technologies in Japan

2013 Participated in the Shale Gas Project in Canada (Ended our participation in 2021)

2013 Commenced production of crude oil at the Garraf project in Iraq

2014 Participated in the Seagull Project in the United	E&P
Kingdom's North Sea	Business

2014 Commenced operation of the mega solar project at the Hokkaido District Office

2018 Commenced operation of the Soma LNG Terminal

2020 Commenced commercial operation of the

Fukushima Natural Gas Power PlantInfrastructure/

Utility Business

2014	Participated in funding Japan Methane Hydrate
	Operating Co., Ltd., which was funded with the
	aim of participating in offshore drilling tests of
	pore-filling type methane hydrate
2019	Achieved our target of injecting 300,000 tons of	New Business
	CO2 in the Tomakomai CCS pilot test conducted
	through Japan CCS Co., Ltd.	Development

	JAPEX foundation ceremony		Aga-oki Platform		Niigata-Sendai Gas Pipeline		Bitumen produced through the steam-assisted		Fukushima Natural Gas Power
								gravity drainage process		Plant of the Fukushima Gas Power Co., Ltd.

JAPEX Integ ra ted Report 2021

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Index	Mission and Purpose	Strategy	Value Creation Through Business Activities	Initiatives to Support Value Creation	Financial and Other Information

Who We Are

JAPEX Our Strengths

JAPEX's three strengths comprise the JAPEX Group's comprehensive technical capabilities related to oil and gas exploration, development, production, transportation and sales; domestic infrastructure that undergirds the stable supply of natural gas; and trusted relationships with stakeholders that serve as the foundation of our business.

Technical capabilities		Application of technical capabilities in new
in the E&P Business		business development centered on CCS

Diverse gas supply network

• We provide a stable supply of LNG and natural gas, which offer low

environmental burden, using diverse transportation methods, such

• We possess comprehensive technical	• We are working to create environmentally friendly
capabilities that can fully augment	renewable energy and other electric power
the entire E&P Business.	CCS technology that contributes to society's
		leveraging the technologies and expertise
		E&P Business.
For more information, see	P.25	For more information, see	P.31

Operator capabilities in the entire oil and gas supply chain

• We possess operator capabilities that span the Group's entire supply chain, including the E&P Business, transportation, regasification of imported LNG, and natural gas power generation.

Operator capabilities in the entire oil and gas supply chain

The JAPEX

Group's

comprehensive

technical

capabilities

as JAPEX's own natural gas pipeline network and railway tank

containers.

Resilient domestic

infrastructure Resilient system for stable operation of infrastructure

• In the Shiunji Gas Field in Niigata Prefecture, we are storing domestic natural gas underground to help meet variable demand and ensure a stable supply of gas for emergencies.
• We are building a system for stable operation of infrastructure with- out major accidents or injuries. We have been able to ensure safety during crises, such as the Great East Japan Earthquake, achieving quick recovery and the restart of supply.

For more information, see P.28

Thorough safety and quality management

Exploration

Production

Delivery

Geology

Imaging

Drilling

Surveys

Reservoir

Planning

Production

Transportationand

into

Supply

Covert Electricity

Seismic

Engineering

Borehole

Engineering

Facility

Engineering

Japan Petroleum Exploration Co., Ltd.

Fukushima Gas

Power Co., Ltd.

JGI, Inc.

Geophysical Surveying Co., Ltd.

Japex Offshore Ltd.

Japex Pipeline Ltd.

SK ENGINEERING CO., Ltd.

North Japan Security Service

Akita Natural Gas Pipeline

Co., Ltd.

Co., Ltd.

GEOSYS, Inc.

JAPEX SKS Corporation

Shirone Gas Co., Ltd.

Group

Relationships of

trust with

stakeholders

Environmental conservation initiatives

Contributing to local communities

Attractive workplaces of choice

• Since our founding, we have been able to build relationships of trust by contributing to local communities and holding dialogue with vari- ous stakeholders. These relationships have become the foundation of our business.

For more information, see P.33-40

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