November 26, 2021

Sale of UK Business

JX Nippon Oil & Gas Exploration Corporation ("JX") has signed an agreement with NEO Energy Upstream UK Limited ("NEO") for the sale of 100% share of JX Nippon Exploration and Production (U.K.) Limited, a subsidiary wholly owned by JX. The purchase price is based on the enterprise value of USD 1.655 billion as at March 31, 2021, after adjustment for debt, working capital, etc. The transaction is subject to satisfaction of certain conditions precedent, including customary regulatory approvals.

Mr. Hiroshi Hosoi, JX President and CEO said:

"This transaction is part of our ongoing global 　　portfolio management strategy to strengthen our upstream portfolio by selling projects that are no longer critical to our business. In line with this strategy, we have decided to sell our UK business to NEO which is an emerging upstream company.

JX is part of the ENEOS Group and is committed to the Group's "Long Term Vision for 2040", which includes contributing to the development of a low carbon society. In line with this Long Term Vision, we have been investing in various sustainable projects in Vietnam, Malaysia, Australia and the USA, including the Petra Nova CCUS project, one of the largest carbon capture projects in the USA.

This transaction is another step towards the Group's Long Term Vision as we continue to contribute to the development of a low carbon society."

About JX Nippon Oil & Gas Exploration Corporation: JX Nippon Oil & Gas Exploration Corporation has engaged in energy exploration and production (E&P) business around the world for over 40 years. It is a core operating company in the ENEOS Group, one of Japan's leading company groups of comprehensive energy, natural resources, and materials. JX has been continuously carrying out safe and stable operations as operator in Malaysia, Vietnam and Japan for many years. For more information, please visit https://www.nex.jx-group.co.jp/english/.