Formulation of the “JAPEX Management Plan 2026-2035”

Japan Petroleum Exploration Co., Ltd. (JAPEX) announces that it has formulated the "JAPEX Management Plan 2026-2035" (the "Plan"), a medium- to long-term growth strategy for JAPEX that extends through 2035.

Based on the "JAPEX Management Plan 2022-2030" formulated in March 2022, JAPEX has been working to strengthen profitability and to build a business foundation with a view to growth 2030 and beyond. As a result, JAPEX has achieved certain results, such as increased profits from continuous investment in U.S. tight oil development and an achievement of profit targets for non-E&P ^(*1) field with the progress of building assets such as renewable energy and overseas LNG supply infrastructure. However, from the perspective of building business assets that contribute to sustainable growth, the goal has not been fully achieved.

Meanwhile, in the global energy landscape, while decarbonization targets remain in place, the importance of stable supply of energy is being reaffirmed, and a more realistic transition is being sought. Furthermore, capital markets are placing even stronger demands on "management that is mindful of the cost of capital."

In light of our current situation and changes in the external environment, JAPEX has determined that a new management plan is essential to build a resilient portfolio and strengthen our execution capabilities.

The Plan is a new initiative covering ten years from FY 2026 to FY 2035. A period from FY 2026 to FY 2030 is considered as a phase for building "core assets" by focusing on overseas E&P and CCUS ^(*2), and a period from FY 2031 to FY 2035 is regarded as a phase when revenue contributions from the "core assets" will begin in full-scale. JAPEX will pursue overseas E&P and CCUS as core revenue drivers and will work on these initiatives - strengthening human capital, transforming organizational culture, and digital transformation - as part of corporate transformation efforts, by which support aforesaid objects.