Held the Spud-In Ceremony of Exploratory Drilling for CCS Project in the Tomakomai Area

Japan Petroleum Exploration Co., Ltd. (JAPEX) held the spud-in ceremony for its first exploratory well which is part of the CCS ^(*1) project in the Tomakomai area and aims to confirm the existence of formations suitable for CO₂ storage within the specified area, on December 15, 2025.

The ceremony was attended by a total of approximately 80 guests, including members of the Diet, officials from the Ministry of Economy, Trade and Industry, the Japan Organization for Metals and Energy Security (JOGMEC), government officials and local officials from Hokkaido Prefecture and Tomakomai City, and parties jointly promoting CCS projects in the Tomakomai area: Idemitsu Kosan Co., Ltd. and Hokkaido Electric Power Co., Inc.

Tomakomai CCS Project is the business considering to separate and capture CO₂ at Idemitsu Kosan Co., Ltd.'s Hokkaido refinery and Hokkaido Electric Power Co., Inc.'s Tomato Atsuma power station by each company and to inject and storage the CO₂ underground by JAPEX. We are advancing efforts toward start storage by 2030 fiscal year in the "Engineering Design Work for Advanced CCS Projects"^(*2) commissioned by JOGMEC.
The Minister of Economy, Trade and Industry designated a specific area off the coast of Tomakomai City, Hokkaido Prefecture, pursuant to the Act on Carbon Dioxide Storage Business (CCS Business Act) in February of this year. JAPEX will implement the exploration drilling in the specified area under the permission granted, which was applied by JAPEX following the commencement of the acceptance of applications for the drilling. JAPEX plans to drill a total of two test wells using drilling rig (drilling equipment) ^(*3). Based on the results, JAPEX intends to make a final investment decision within 2026 fiscal year.

JAPEX will proceed with the exploratory drilling with safety as its top priority, working towards commercialization while seeking the understanding and cooperation of local stakeholders, as well as relevant municipalities and organizations.