PRESS RELEASE

JX Nippon Oil & Gas Exploration Corporation ("JX") (President and CEO: Hiroshi Hosoi) is pleased to announce that it has, in collaboration with Japan Oil, Gas and Metals National Corporation ("JOGMEC"), executed a Memorandum of Understanding ("MOU") with PT Pertamina (Persero) ("Pertamina"), an Indonesian state-owned oil and gas company, to implement a joint study and a business plan in the upstream oil and gas sector including CO2 Enhanced Oil Recovery (CO2-EOR).

Under the MOU, JX, JOGMEC and Pertamina will explore cooperation opportunities through the joint study and business plan discussions, setting a specific target on commercialization of the oil and gas assets owned by Pertamina or its affiliates, utilizing the experience, knowledge and technology of JX and JOGMEC.

The cooperation opportunity includes a CO2-EOR project. If the project is confirmed to be feasible and the parties to the MOU agree, JX intends to proceed further and contribute to increasing crude oil production as well as reducing greenhouse gas emissions in Indonesia.

JX regards EOR technology as one of its core technologies. In 2011, JX, together with PETROVIETNAM and JOGMEC, succeeded in the implementation of CO2-EOR pilot test in Vietnam. Since 2014, JX has participated in a CO2-EOR project utilizing flue gas from a thermal power plant in Texas, U.S.A.

As per the Medium-Term Management Plan, JX will allocate business resources to its focus regions such as Southeast Asia, where it can exercise its strength, pursuing a strategy of selection and concentration. JX intends to maintain and strengthen its relationships and expand business in Indonesia.