Transfer of Participating Interest in Aceh Block A, Indonesia

Japan Petroleum Exploration Co., Ltd. (hereafter "JAPEX") announces that JAPEX Block A Ltd., the wholly owned subsidiary of JAPEX, has reached an agreement on April 28 to transfer its entire participating interest of Aceh Block A (16.6667%) located in Aceh, Indonesia to PT Medco E&P Malaka (hereafter "MedcoEnergi"), the operator of this block. Completion of this transaction is conditional on the approval of the Government of Indonesia and the Government of Nangroe Aceh Darussalam.

Aceh Block A is located in the northern area of Sumatra Island in Indonesia, and MedcoEnergi together with the joint venture partner companies is preparing for the development of gas fields. In this time, JAPEX has decided to divest from the block in an effort to optimize our comprehensive portfolio however, we are committed to progress our projects in Indonesia, such as Kangean.

This transfer will not affect the financial result of FY2016/3 (April 1, 2015 - March 31, 2016), and we will assess the impact on the financial result of FY 2017/3 (April 1, 2016 - March 31, 2017) upon the completion of this transaction.