JAPAN - INPEX CORPORATION ('INPEX') announced today it has reached an agreement with Idemitsu Kosan Co., Ltd. and Osaka Gas Summit Resources Co., Ltd. (OSR), a joint venture between Osaka Gas Co., Ltd. and Sumitomo Corporation, to acquire 50.5 percent (50.5%) of shares in Idemitsu Snorre Oil Development Co., Ltd. (ISD) held by Idemitsu and OSR.

INPEX will acquire one percent (1%) of the 50.5 percent (50.5%) of shares held by Idemitsu and all the shares held by OSR, amounting to 49.5 percent (49.5%), for a total share ownership of 50.5 percent (50.5%).

This share acquisition is expected to be concluded at the beginning of next year, subject to the approval of the government of Norway and other conditions.

INPEX and Idemitsu have built a positive business partnership to date as collaborators on a gas field development project offshore Vietnam and a geothermal power generation business in Japan. The implementation of the joint business (announced today) is expected to further strengthen the business relationship between the two companies. Through its wholly owned Norwegian subsidiary Idemitsu Petroleum Norge AS (IPN), ISD currently owns 11 oil and natural gas assets in production and/or under development, including the Snorre Project, as well as interests in multiple promising discovered but undeveloped oil and gas fields and exploration licenses.

Norway is a pioneer of low-carbonization and decarbonatization through the development of renewable energies such as offshore wind power generation and CCS (carbon capture and storage) operations involving sequestering and storing CO2 below ground. The country is also behind proactive initiatives to introduce low-carbonization technologies in oil and gas field operations. For example, the Snorre Project, IPN's flagship asset, is expected to draw 35 percent (35%) of its entire power from the Hywind Tampen floating wind farm currently under construction. Furthermore, projects being evaluated for development are considering reducing CO2 emissions from oil and gas field production plants by using Power from Shore solutions based on onshore hydropower generation. By acquiring shares in ISD, INPEX will access valuable assets that will help the company establish a stable revenue base and secure business growth opportunities while at the same time introducing assets with low greenhouse gas emissions per unit and pursuing the low-carbonization of its existing operations.

INPEX has up to now conducted oil and natural gas exploration activities in Norway through its wholly owned Norwegian subsidiary INPEX Norge AS (INOR). Following its acquisition of ISD shares, INPEX plans to carry out the integration between IPN and INOR, which will strengthen its operational base in Norway, and lay out a policy of further bolstering its business activities in the country. By acquiring IPN's well balanced portfolio, INPEX expects its corporate value to further improve.

Additionally, the acquisition is expected to contribute to making INPEX's core upstream business more resilient, which is one of the objectives outlined in the company's 'Business Development Strategy - Towards a Net Zero Carbon Society by 2050' announced in January 2021. INPEX will also fulfill its two social responsibilities of providing a stable supply of energy while mounting a response to climate change, in addition to making its upstream business cleaner, by proactively pursuing decarbonization efforts in Norway and around Europe. Following the acquisition, ISD and IPN are expected to become consolidated subsidiaries of INPEX. While the impact of this acquisition on INPEX's consolidated financial results for the current fiscal year is expected to be minimal, the acquisition is expected to contribute to INPEX's consolidated financial performance over the medium- to long-term.

About INPEX

INPEX CORPORATION is Japan's largest exploration and production (E&P) company, and is currently involved in projects across multiple continents, including the Ichthys LNG Project in Australia as Operator. Through building a cleaner upstream business and advancing hydrogen and renewables solutions, INPEX aims to become a leading energy company and continue providing a stable and efficient supply of energy to its customers while pioneering energy transformation towards a net zero carbon society by 2050.

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