JAPEX knows that securing reserves, expanding production and generating earnings overseas are important themes for establishing a stable operating base over the long term. Based on this thinking, JAPEX continues to boost operating efficiency and identify new projects in Southeast Asia,Canada,Sakhalin in Russia the Middle East, North Africa and other regions identified as target areas. JAPEX is adopting two approaches to opening up new business opportunities. One is to acquire rights to oil and gas fields that are already on-stream or that have been discovered but not yet developed, which offer relatively low risk and early returns. The other is to acquire exploration rights that are expected to deliver relatively high returns.