In November 2007, INPEX acquired a 10% interest in the Joslyn Oil Sands Upstream Project in Alberta, Canada.

The Joslyn project plans to conduct a multiphase mining development, with a production plan of 100,000 bbl/d by the second half of 2010 as Phase1 development. The development framework is currently under investigation.

In regard to the oil sand upgrader (synthetic crude oil manufacturing) project in which we participate, alternatives to the plant planned by TOTAL in Edmonton are under consideration.

INPEX was awarded a 100% working interest in a central onshore area, the East Guarico Block in Venezuela in July 1992. INPEX participated in oil and natural gas field rehabilitation and exploration and development activities as an operator under the operating service agreement (OSA) terms.

The existing OSAs were changed to joint venture agreements in 2006 after a change of policy by the Venezuelan Government. Based on the new policy, INPEX established gas and crude oil venture companies jointly with Petroleos de Venezuela, S.A. (PDVSA), the Venezuelan national petroleum company, and from April 2006 continued the gas business in the Copa Macoya Block and the crude oil business in the Guarico Oriental Block. The new joint venture agreement also features contract extensions until 2026 for both blocks.

Frade Japão Petróleo Limitada (FJPL), a joint venture established by INPEX and Sojitz Corporation, acquired a 12.75% working interest in the Frade Block in Brazil’s offshore Northern Campos basin in July 1999, and acquired an additional 2.25% in July 2001. As a result of the change in interest ownership due to arrangements determined under contract, FJPL’s working interest amounted to 18.3% in June 2006.

After its initial discovery in 1986, the reserves of the Frade Oil Field were first estimated in 2001 with the drilling of two appraisal wells after FJPL acquired a participating interest in the block. A final investment decision to develop Frade was made in June 2006 after subsequent feasibility studies. Commercial production started in June 2009, marking the first crude oil to be produced in Brazil by an enterprise with a significant Japanese equity interest.

INPEX has participated in oil and gas development projects in the shallow waters of the U.S. Gulf of Mexico since April 2006. Following production startup from Ship Shoal 72 in July 2006, Main Pass 118, West Cameron 401/402, Louisiana SL19372 and SL20183 started production.

We participated in deepwater exploration blocks of Walker Ridge 95/96/139/140 in the Gulf of Mexico in February 2011.

INPEX’s affiliate, Teikoku Oil de Burgos S.A. de C.V., has participated in gas development and production operations in the Cuervito and Fronterizo blocks located in the Burgos basin of Mexico since 2004. This project has been conducted under the multiple service contract with PEMEX, and INPEX’s affiliate holds a 40% working share of this project.