PRESS RELEASE

Mr. Hiroshi Hosoi, President and CEO of JX Nippon Oil & Gas Exploration Corporation is pleased to announce that its subsidiary JX Nippon Oil & Gas Exploration (Malaysia) Limited, the Operator of Block SK10 offshore Sarawak, Malaysia together with PETRONAS Carigali Sdn Bhd, commenced commercial oil production from Layang Field on 3 December, 2019.

Layang Field ("Layang"), in addition to its natural gas production since May 2017, commenced oil production by using a Floating Production, Storage and Offloading System (FPSO) named "FPSO Helang".

The production of oil from Layang is estimated at about 3,000 barrels per day, and about 10,000 barrels of oil equivalent per day (BOED) with natural gas combined.

"FPSO Helang" is also planned to be utilized for production and shipping of oil from Helang Field ("Helang") in Block SK10. The production of oil and natural gas from Layang and Helang with the use of "FPSO Helang" is estimated to reach about 20,000 BOED.

This expansion of production facilities in Block SK10 comprised of Layang, Helang and Beryl Gas Field, the company's one of main projects, will enhance the value of the asset and increase its profitability.

With the expected steady growth of oil and natural gas demand in Asia, we will continue to maintain and strengthen our long-term good relationship with Malaysia and enhance our capacity to raise revenue through our E&P business activity as Operator.