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Occurring Fact1662Japan Petroleum Exploration Co.,Ltd.Energy Resources

Impact of Escalating Tensions in the Middle East on Our Business Performance

Because of the de facto blockade of the Strait of Hormuz, the Company procured on the spot market from other producing regions the equivalent of 2 LNG cargoes scheduled for the first quarter of fiscal 2026, and procurement costs are expected to rise significantly. Production operations and shipments have also been suspended at the Garraf oil field in Iraq, making it impossible to forecast revenue from this project.

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Impact of Escalating Tensions in the Middle East on Our Business Performance

Subject Entity

Japan Petroleum Exploration Co.,Ltd. (the Company) and its consolidated subsidiary ㈱ジャペックスガラフ

Target Locations / Products

The equivalent of 2 LNG cargoes scheduled for procurement in the first quarter of fiscal 2026, Fukushima Natural Gas Power Plant, the Garraf oil field in southern Iraq, and domestic oil and gas fields

This disclosure04/17/2026
Cause

Escalating tensions in the Middle East, the continued de facto blockade of the Strait of Hormuz, the Iraqi government's declaration of force majeure, and tight supply and demand for chemical products and other materials used in domestic oil and gas field operations

Accounting period in which recognized

The impact is expected to be reflected in the earnings forecast for the fiscal year ending March 2027. The impact on results for the fiscal year ended March 2026 is minor.

Impact on Earnings Forecast

The specific impact is currently under review. The impact based on certain assumptions regarding future developments is expected to be reflected in the earnings forecast for the fiscal year ending March 2027, which is scheduled to be announced on 13 May. The impact on results for the fiscal year ended March 2026 is minor.

Related procedures

Type

Declaration of force majeure by the Iraqi government

Court or authority

Iraqi government

Company response

Suspended operations

Production operations and shipments at the Garraf oil field in southern Iraq

Outlook

The Company will closely monitor the latest developments on the ground and make every effort to ensure a stable energy supply. The impact is expected to be reflected in the earnings forecast for the fiscal year ending March 2027.

Planned follow-up disclosure

The Company is scheduled to announce on 13 May its earnings forecast for the fiscal year ending March 2027, incorporating the impact.

Event that occurred
ItemDetails
Event nameImpact of Escalating Tensions in the Middle East on Our Business Performance
Subject EntityJapan Petroleum Exploration Co.,Ltd. (the Company) and its consolidated subsidiary ㈱ジャペックスガラフ
Target Locations / ProductsThe equivalent of 2 LNG cargoes scheduled for procurement in the first quarter of fiscal 2026, Fukushima Natural Gas Power Plant, the Garraf oil field in southern Iraq, and domestic oil and gas fields
CauseEscalating tensions in the Middle East, the continued de facto blockade of the Strait of Hormuz, the Iraqi government's declaration of force majeure, and tight supply and demand for chemical products and other materials used in domestic oil and gas field operations
Accounting period in which recognizedThe impact is expected to be reflected in the earnings forecast for the fiscal year ending March 2027. The impact on results for the fiscal year ended March 2026 is minor.
Impact on Earnings ForecastThe specific impact is currently under review. The impact based on certain assumptions regarding future developments is expected to be reflected in the earnings forecast for the fiscal year ending March 2027, which is scheduled to be announced on 13 May. The impact on results for the fiscal year ended March 2026 is minor.
Type of litigation or proceedingDeclaration of force majeure by the Iraqi government
Court or authorityIraqi government
Suspended operationsProduction operations and shipments at the Garraf oil field in southern Iraq
OutlookThe Company will closely monitor the latest developments on the ground and make every effort to ensure a stable energy supply. The impact is expected to be reflected in the earnings forecast for the fiscal year ending March 2027.
Planned follow-up disclosureThe Company is scheduled to announce on 13 May its earnings forecast for the fiscal year ending March 2027, incorporating the impact.
Items this document does not state (14)
Date of occurrenceDate recognized / date notice receivedAmount of Impact on Business PerformancePlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The Company cited escalating tensions in the Middle East, the de facto blockade of the Strait of Hormuz, the Iraqi government's declaration of force majeure, and tight supply and demand for chemical products and other materials used in domestic oil and gas field operations.

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Impact of Escalating Tensions in the Middle East on Our Business Performance | Japan Petroleum Exploration Co.,Ltd. (1662) timely disclosure | Komori