Jx Nippon Oil Exploration (u.s.a.) Limited

Nippon Oil Corporation and Nippon Mining Holdings which incorporated JX Holdings, Inc. on April 1st, 2010, a holding company through a share transfer, have inaugurated JX Group. Nippon Oil Exploration Limited and Japan Energy Development Co., Limited., both E&P companies of the former organizations, merged on July 1st, 2010, to become one of the three core business companies of JX Group, which will play an important role in the development strategy of the Group.
JX Nippon Oil & Gas Exploration Corporation (“NOEX”) is currently expanding its business of crude oil and natural gas development in 15 countries around the world. We are leading projects as operators in the crude oil production business in Vietnam, natural gas production business in Malaysia and exploration business in North Sea area in U.K. We are also promoting a crude oil production project for more than 30 years in the United Arab Emirates, one of the world’s largest oil producing countries in the Middle East. In terms of LNG projects, the first cargo of LNG in the Tangguh Project in Indonesia was lifted in July 2009, and we are participating in Papua New Guinea’s first time LNG project, the development operations of which we proceed along with partner companies with a target of first LNG cargo delivery in 2014.
Harmonization with the environment of the Earth is inevitable in proceeding the above mentioned business activities around the world. At the Rang Dong oil field in Vietnam, we have established a mechanism to supply the associated gas produced along with the crude oil as a fuel of power generation. The Rang Dong Project was the first to be officially approved in the oil and gas development industry by the CDM Executive Board as a Clean Development Mechanism under the Kyoto Protocol in February 2006.
NOEX has formulated the Management Plan for the three years from 2010 to 2012. In this Plan, we set the stability and expansion of production volume over mid-to-long term as our basic business strategy, and actively promote this strategy based on the exploration operation. We will discreetly select assets to acquire, while diligently strive for additional development and new technology in enhanced oil recovery in the core countries we focus on: Vietnam, Malaysia and North Sea area in U.K. Moreover, we will actively expand our business in order to maximize the asset values by preferentially distributing the finance and human resources mainly to the countries we focus on.
With the crude oil prices rising, uplifting of oil and gas producing countries’ resources nationalism, and bigger demand and emphasis on acquisition of upstream interests by the developing nations, we anticipate to be facing severer competition in acquiring resources in the future. Under these circumstances, NOEX, as one of the core business companies of JX Group which is one of the largest integrated energy, resources and materials business groups in Japan, will keep its ethics up high, build good relationship with the society and strive to harmonize with the environment while actively promote business operations. In August 2010, NOEX participated in the United Nations Global Compact and expressed its support for the Ten Principles. In addition, we aim to strengthen the relationship with the oil and gas producing countries by contributing to the countries’ development through our business activities. We would like to ask for your continuous support in the years to come.