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 Study Agreement ("SA") with Petroliam Nasional Berahad (PETRONAS), a national oil company, to implement a joint study on the development of gas fields using CCS technology.

This study focuses on the development of high CO₂ gas fields in Malaysia, which are currently assumed difficult to develop from economical point of view due to associated carbon dioxide management cost. We will conduct the study by leveraging both JX and JOGMEC's knowledge and experiences to pursue possibility of commercialization of the project in the future and aim to develop environment friendly gas fields development method by capturing CO₂ contained in the produced gas and reinjecting them to the nearby mature gas fields.

If development of such high CO₂ gas fields is confirmed by the study to be feasible and the parties to the SA agree, JX intends to move forward to the gas production with low environmental impact by CCS technology.
This study also covers to see the feasibility of supply chain construction of hydrogen made from the gas produced from the high CO₂ fields.

JX regards enhanced oil recovery ("EOR") as one of its core technologies, and the relating technologies namely carbon capture, utilization and storage ("CCUS") including CCS and CO₂-EOR to be the keys for the ecofriendly and efficient recourse development.
JX has successfully established proven track records in several CCUS projects. In 2011, JX and JOGMEC succeeded in the implementation of CO₂-EOR pilot test in Vietnam. Also, since 2014, JX has been engaged in a CO₂-EOR project (Petra Nova CCUS Project) utilizing CO₂ captured from a thermal power plant in Texas, U.S.A.

JX has been applied the CCUS solution obtained through those projects in the Southeast Asian countries, where it can exercise its strength, such as a joint study on CO₂-EOR in Indonesia commenced in 2019. This has been conducted in corporation with Pertamina, an Indonesian state-owned oil and gas company, and we are now to implement the CCS joint study in Malaysia.

JX intends by this study to maintain and strengthen its relationships with Malaysia, and to expand its business in the country while contributing to realize the low carbon emission and recycling-oriented world.