Establishment of Subsidiary

Japan Petroleum Exploration Co., Ltd. (JAPEX) announced that its Board of Directors has resolved to establish a subsidiary at a meeting held on July 22, 2022 as follows.

1. Reason for Establishment of Subsidiary

In order to further improve the efficiency of our group's non-life insurance operations and enhance risk management, we will establish a captive insurance company (an insurance subsidiary that specializes in underwriting our group's risks).

2. Outline of the subsidiary to be established

(1) Name: JAPEX Insurance Ltd.

(2) Location: CLARENDON HOUSE, 2 Church Street, Hamilton HM 11, Bermuda

(3) Title and name of representative: YAMASHITA Michiro, Managing Director

(4) Business: Underwriting insurance related to JAPEX and its group companies

(5) Capital: 3.5 billion yen

(6) Date of Establishment: Scheduled for August 2022

(7) Investment Ratio: Wholly owned by JAPEX

(8) Relationship between JAPEX and JAPEX Insurance Ltd.:

• • Capital Relationship: Wholly owned by JAPEX
  • Personal relationship: JAPEX's Director and Senior Managing Executive Officer will concurrently serve as Managing Director of the subsidiary
  • Transaction Relationships: Underwriting insurance related to JAPEX and its group companies

3. Schedule

(1) Date of resolution by the Board of Directors: July 22, 2022

(2) Date of establishment (date of commencement of business): August 2022 (scheduled)

4. Outlook for the future

The impact of this matter on our business performance is expected to be negligible.