JX Signs PSC with Petronas for Deepwater Block 2F off Sarawak

JX Nippon Oil & Gas Exploration Corporation (President: Shigeo Hirai) announced Thursday that JX Nippon Oil & Gas Exploration Corporation has entered into a Production Sharing Contract (PSC) for Deepwater Block 2F, Sarawak with Petroliam Nasional Berhad (Petronas), the national oil company of Malaysia, through its subsidiary, JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. (President: Hironori Wasada) to be effective from Sept. 19.

Deepwater Block 2F is located in the northwest of Sarawak, with approximately 2,123.5 square miles (5,500 square kilometers) surface area and 328-3,37 feet (100-1,200 meters) water depth. JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. holds 40 percent Participating Interest and will conduct exploration activity as the operator at Deepwater Block 2F.

Deepwater Block 2F is our 6th project (and 4th project as operator) in Malaysia.

In Malaysia, we are operator for Block SK10, offshore Sarawak which is now in the 10th year of gas production and studying further development. We are also the operator carrying out exploration activities in Block SK333 onshore Sarawak and Deepwater Block R offshore Sabah. In Block SK333, accumulation of oil and gas were confirmed at Adong Kecil West-1 well which was drilled in 2012 and we are currently conducting detailed reserves evaluation. In addition, we are participating as non-operator in gas production activities in Block SK8 and also as non-operator in exploration activities in Block PM308A offshore Peninsular Malaysia.

We consider Malaysia as one of our important core countries and will seek to increase our activities and presence in Malaysia.

Project Summary

Block: Deepwater Block 2F, Sarawak, Malaysia

Signing Date: Sept. 19, 2013

Block Acreage: Approx. 2,123.5 square miles (5,500 square kilometers)

Participating Interest:

• JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. - 40 percent
• Petronas Carigali Sdn. Bhd. - 40 percent
• GDF Suez E&P Malaysia B.V. - 20 percent

Operator: JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd.

Work Program

Exploration Period: 4 years

Planned Activities: Drilling of Wildcat Well, Acquisition and processing of new CSEM data and reprocessing of existing CSEM data, and Reprocessing of existing 3D Seismic data

Company Profifle of JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd.

Representative: Hironori Wasada

Date of Establishment: March 11, 2013

Business Activities: The exploration and development of petroleum, natural gas, other mineral resources in and around Malaysia. The recovery processing, storage, sale and purchase of petroleum, natural gas, other mineral resources and the by-products of these and to carry on related business in connection with above objects.

Shareholder: JX Nippon Oil & Gas Exploration (Offshore Malaysia) Sdn. Bhd. (100 percent)