Technology and Innovation to secure a sustainable future

for the E&P industry

Toshiaki Kitamura President & CEO

INPEX CORPORATION

In Development In Production In Exploration

Ichthys LNG Project (Operator)

Abadi LNG Project (Operator)

Deep Water Sabah Block S (Operator)

ADMA Block

Minami-Nagaoka Gas Field and Natural Gas Pipeline

(Operator)

E

P

D D

P

Suriname Block 31 (Operator)

E

Introduction

INPEX – working in 27 countries globally

1

Global Context • Increased Energy Use &

Continued Dependency on Fossil Fuels – The world needs 30% to 50% more in 30 years from

now

– Today's share of fossil fuels in the global mix, at around 80%, will not be much different in 30 years

• Increased Stress on Environment – The Energy Growth will increase the environmental

stress

– In approximately 30 years, energy-related CO2 emissions are expected to increase by around 20% to 40%

• Increased Difficulties to find the oil/gas and extract the oil/gas – The Age of Easy Oil is coming to an end.

3 2

Technology & Innovation

Unlock Potential

while minimizing

environmental stress

Increased Energy

Demand

Post Easy Oil Era

• Population • Living Standard • Developing Countries

• Deep Water • Arctic • Tight Reservoir • Not Easy to Find

• CO2 • Water

Technology & Innovation will enable E & P industry to realize the sustainable future

Increased Environmental

Stress

3

Three Growth Targets

INPEX Medium- to Long-Term Vision

1 2 3 Continuous

Enhancement of E&P Activities

Net production 1 MM BOEPD

Strengthening Gas Supply Chain

Supply volume in Japan

2.5 Bm3/year (240MMCFD)

Reinforcement of Renewable Energy

Initiatives

R&D activities & realization

Become a Top Class International Oil and Gas E&P Company Become a company serving an essential role in the global community

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Enhancement of

E & P Activities

Exploration

New Basins & Existing Hubs

Acquisition

Producing Assets

EOR/IOR

From Known Hydrocarbon Resources

Unconventional

Shale Gas & Tight Oil

Conventional Unconventional

Conventional Unconventional

Four Opportunities under the INPEX Vision

5

Technology Infrastructure • Develop Expert Group and Laboratory Facilities • General Specification and Technical Guidelines • Knowledge Management System

Conventional Explo

ration,

Develo

pm

ent

and

Pro

duct

ion T

ech

nolo

gie

s

Deep W

ate

r D

evelo

pm

ent

Shale

Gas

/ Tig

ht

Oil

Develo

pm

ent

New

Explo

ration C

once

pt

EO

R /

IO

R

LN

G S

upply

Chain

Arc

tic

/ O

il S

and /

Heavy O

il

Coal Bed M

eth

ane（CBM）

Meth

ane H

ydra

te

・ ・

Focused Technical Themes Information Gathering

Conventional Technologies

INPEX Technology Roadmap

6

Explore Assess Select Define Execute Operate

Operated Projects

Sabah Surinam Babar Selaru Browse

Abadi FFD Abadi Stage1 Ichthys Naoetsu Minami-Nagaoka

Non-operated Projects

Greenland Iraq Block-10 Uruguay Area15

Brazil BM ES 23 Crown Lasseter Burnside Vietnam05-1b/c

Aurora LNG Tangguh Tr. 3 Angola Blk. 14

Prelude Lucius Kashagan

ADMA ACG Mahakam Kitan Van Gough Frade

Assess Explore Select Define Execute Operate

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Deep Water

Shale gas EOR

Deep Water

Tight Reservoir

LNG LNG LNG

LNG

LNG LNG

LNG

Exp. Concept

Exp. Concept

Arctic

HPHT

HPHT/Sour/ Ice Presence Deep

Water

INPEX Project Showcase

Sources of Innovation A fundamental set of sources to meet INPEX technology development needs.

Field-based Innovation

• Pilot Test

• Field Test

R&D Center

• In-house Research Center (Laboratories)

• Access to JOGMEC – TRC

Open Innovation

• Joint industry projects

• Joint Research with universities

INPEX Technology

8

JOGMEC Initiatives and Role of INPEX Utilization of Japanese Advanced Technology

Computer/IT Network/Software

Robot Precision Machine

Superconductivity

Nanotechnology Material

Biotechnology

Environmental Technology

Sensor Technology

Seeds JOGMEC

National Oil

Company Technology

Needs

Cutting Edge Japanese Technology

INPEX

INPEX’S possible role • Acting as Catalyst • Sharpening NEEDS • Proactive User of Japanese

Advanced Technology

JOGMEC Facility

9

Example 1 – Produced Water Treatment Membrane Based Water Treatment

From Basic Research to Commercial Deployment

10

Collaborate with Japanese Industries

Pilot Test at our operated field (Akita)

Field Test at our Operated field (Akita)

Ceramic Membrane Element

Pilot Test Facilities

Photo courtesy of Chiyoda Corporation & METAWATER Co., Ltd.

Open Innovation Collaboration with Japanese Industries

Field Based Innovation Pilot Test / Field Test

R & D Center Possible Collaboration with

JOGMEC

Source: a brochure of METAWATER Co., Ltd.

Basic Research

(Nano-Technology application to CO2 EOR)

Pilot Test

(@ Domestic Fields and/or Overseas Fields)

Field Test

(@ Domestic Fields and/or Overseas Fields)

Application to Material Projects such as Abu-Dhabi Oil Fields

NEXT Generation CO2-EOR From Basic Research to Commercial Deployment

Example 2 – CO2-EOR

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Open Innovation Collaboration with

Japanese University

Field Based Innovation Pilot Test / Field Test

R & D Center Possible Collaboration with

JOGMEC

Field Tests

Nano Particle

Collaboration and Innovation While National Oil Companies are seeking to meet their future challenges,

INPEX is fully committed to support and contribute to attaining those goals

For Example : Abu-Dhabi Case

INPEX/JODCO

Technology Provider

- EOR – CO2 EOR

- Water Disposal

- IOR - Hydraulic Fracturing

ADNOC

National Interests (Economic Vision 2030)

- 3.5 million BOED

- Gas Development

12