Country Risks and Political and Economic Conditions Affecting Overseas Businesses
First written in FY2016. 3 of 11 entries say "Materialised", first in 2026-04-17. Latest entry: 2026-08-06.
Japan Petroleum Exploration moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 47 of 94 companies on the "Worse" side.
27 other companies' latest entry also says "Materialised".
- 2026-08-06MaterialisedEarnings
「The main reasons for the decline in revenue and earnings from the same period of the previous year were lower crude oil sales volumes and higher LNG procurement costs resulting from the spot procurement of replacement LNG cargoes from other production regions instead of the cargoes planned to be procured from within the Persian Gulf because of the blockade of the Strait of Hormuz.」
The blockade of the Strait of Hormuz caused LNG cargoes planned from the original procurement source to be procured on the spot market from other production regions, and the geopolitical risk associated with overseas operations materialized as a specific increase in costs. - FY2026MaterialisedAnnual report
「For the LNG procured by the Company, we assume higher costs from alternative procurement. For the Garraf oil field in Iraq in which the Group holds an interest, there was no prospect of when operations would resume as of the date of the announcement, and therefore we assume that production and shipments will be suspended for the full year.」
Heightened tensions in the Middle East have led to specific business impacts, including higher alternative LNG procurement costs and uncertainty over the resumption of operations at the Garraf oil field, with a full-year suspension assumed. - FY2023Increasing difficulty in obtaining information for reserves evaluationAnnual report
「Because it is difficult for the Company to obtain the information necessary to evaluate reserves, SODECO's reserves have been excluded.」
Following the succession of rights and obligations to the new company for Sakhalin 1 and the approval to subscribe for an interest, it was disclosed that the necessary information for reserves evaluation could not be obtained and that the reserves would therefore be excluded from proved reserves. - FY2023-Q3Confirmation of approval to subscribe for an LLC interestAnnual report
「SODECO obtained permission from the Russian federal government to subscribe for an interest in the LLC corresponding to its 30% interest in the Sakhalin 1 project. The amount of the impact on the financial position, operating results and cash flows from the following quarter onward is currently under review.」
Following the succession of rights and obligations to the new company, it was confirmed that SODECO had obtained permission to subscribe for an LLC interest corresponding to its 30% interest. Meanwhile, the amount of the impact on the financial position and other matters remains under review. - FY2023-Q2Succession of rights and obligations to the new companyAnnual report
「With respect to the crude oil and natural gas development project offshore Sakhalin Island, Russia, in which the Company participates through Sakhalin Oil and Gas Development Co., Ltd., an equity-method affiliate, the Russian federal government established a new company, and the contractual rights and obligations under the production sharing agreement were succeeded by the new company.」
The establishment of a new company by the Russian government and the succession of contractual rights and obligations occurred, adding the need to assess the impact on the Sakhalin-1 project. - FY2022WorsenedAnnual report
「Some overseas E&P operations may be conducted in regions with relatively high country risk. Political, economic or social turmoil in these countries, including significant deterioration in public security, or changes in laws, tax systems, policies and other matters, may adversely affect the smooth execution of the Group's overseas operations.」
In addition to general country risks, including political, economic and social conditions affecting overseas operations, the potential specific impact of the situation involving Russia and Ukraine and economic sanctions was identified during the fiscal year. - FY2020RestatedAnnual report
「Some overseas E&P operations may be conducted in regions with relatively high country risk. Political, economic or social turmoil in these countries, including significant deterioration in public security, or changes in laws, tax systems, policies and other matters, may adversely affect the smooth execution of the Group's overseas operations.」
The risks of political, economic and social conditions and changes in laws, tax systems and policies affecting overseas operations have continued. - FY2017RestatedAnnual report
「Furthermore, as a general trend in oil development, some overseas operations may be conducted in regions with relatively high country risk. Political or economic turmoil in these countries, or changes in laws, tax systems, policies and other matters, may adversely affect the smooth execution of the Group's overseas operations.」
The risks of political, economic, legal, tax and policy changes affecting overseas operations have continued. - FY2016First statedAnnual report
「Furthermore, as a general trend in oil development, some overseas operations may be conducted in regions with relatively high country risk. Political or economic turmoil in these countries, or changes in laws, tax systems, policies and other matters, may adversely affect the smooth execution of the Group's overseas operations.」
Regional conditions and changes in laws, tax systems and policies affecting overseas projects were organized as cross-cutting risks.