Implementation of Second Exploratory Drilling for CCS Project in the Tomakomai Area

Japan Petroleum Exploration Co., Ltd. (JAPEX) announces that it began drilling its second exploratory well on August 15 to confirm the existence of formations suitable for CO₂ storage within the specified area, to advance the Tomakomai CCS^(*1)Project.

The exploratory well drilling is conducted pursuant to the exploratory drilling permit^(*2) obtained by JAPEX from the Minister of Economy, Trade and Industry. The second exploratory well utilizes Extended Reach Drilling from a drilling rig (drilling equipment) installed in Masago-cho, Tomakomai City, Hokkaido Prefecture, toward the seabed to confirm the existence of formations suitable for CO₂ storage. Based on the results, and data from the first^(*3) exploratory well, JAPEX intends to make a final investment decision for CCS project in the Tomakomai Area.

Prior to the start of drilling, the Spud-in ceremony was held on August 6 to pray for the safety and success of the exploratory drilling, and was attended by 27 people, including government officials, local representatives, and project stakeholders.

Tomakomai CCS Project is the business considering to separate and capture CO₂ from 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 storage commencement by fiscal year 2030 in the "Engineering Design Work for Advanced CCS Projects^(*4) commissioned by the Japan Organization for Metals and Energy Security (JOGMEC).
　
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, including those in the fishing industry, as well as relevant municipalities and organizations.