Vietnam

On October 28, 2004, Idemitsu, as an Operator, entered into a Production Sharing Contract together with Nippon Oil Exploration Limited (now JX Nippon Oil & Gas Exploration Corporation) and Teikoku Oil (Con Son) Co., Ltd. with Vietnam Oil and Gas Group (Petrovietnam) for the Blocks 05-1b and 05-1c offshore Vietnam. After the official approval from the Vietnamese government as of November 18, we established an operation office in Ho Chi Minh City in January 2005 and commenced the exploration activities.

These blocks are located 350 km southeast of Ho Chi Minh City and under the same basin as the Dai Hung field and the Lan Tay/Lan Do gas fields in highly potential gas and oil producing basins. A 3D seismic survey covering 598 km2 and a 2D seismic survey covering approximately 500 km, were acquired in 2005. The first exploratory well was drilled in 2007. An additional 2D seismic survey covering approximately 1,800 km was acquired in 2007 and 2008. As the results of evaluation of geological potential based on 2D seismic data acquired in 2007 and 2008, the decision was made to proceeding into Phase Two. As a result of the second exploratory well which was drilled in 2010, accumulations of oil and gas were confirmed. A 3D seismic survey covering 814 km2 was acquired in order to evaluate oil and gas discovered structure and other potential prospects in these blocks. As the results of detailed evaluation, the decision was made to proceeding into Phase Three and the third exploratory well is being drilled.