Risk of Changes in Mine Closure Costs and Asset Retirement Obligations After the End of Production
First written in FY2017. 7 of 14 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Japan Petroleum Exploration moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2018: 1 of 9 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The increase of ¥6,172 million resulting from the change in estimates has been added to the asset retirement obligation balance before the change. As a result of this change in estimates, operating income for the current consolidated fiscal year decreased by ¥5,823 million, while ordinary income and income before income taxes decreased by ¥6,138 million.」
Due to surging equipment and materials prices and labor costs and a review of the removal schedule, ¥6,172 million was added to asset retirement obligations, increasing the period-end balance to ¥4,103.9 million from ¥4,103.9 million. - FY2026-H1MitigatedAnnual report
「Asset retirement obligations 34,311 29,470」
The balance of asset retirement obligations decreased from ¥34,311 million at the end of the previous fiscal year to ¥29,470 million, reflecting a reduction in recorded obligations for well-plugging and removal costs after production ended. - FY2025WorsenedAnnual report
「During the current consolidated fiscal year, the company obtained new information concerning surging equipment and materials prices and labor costs in connection with asset retirement obligations recorded for well-plugging and facility-removal costs at domestic oil and gas fields and elsewhere. As a result, the ¥6,871 million increase arising from the change in estimates was added to the asset retirement obligation balance before the change.」
In response to surging equipment and materials prices and labor costs, ¥6,871 million was added to asset retirement obligations, increasing the period-end balance from ¥24,687 million to ¥34,327 million. Operating income decreased by ¥6,427 million, while ordinary income and other items decreased by ¥6,750 million. - FY2025-H1WorsenedAnnual report
「Asset retirement obligations 24,687 25,009」
The balance of asset retirement obligations increased from ¥24,687 million at the end of the previous fiscal year to ¥25,009 million. - FY2024WorsenedAnnual report
「The balance of asset retirement obligations at period-end increased from ¥20,043 million to ¥24,687 million.」
Asset retirement obligations increased from ¥20,043 million at the end of the previous fiscal year to ¥24,687 million. This included an increase resulting from changes in estimates for the costs of removing domestic offshore platforms and plugging wells. - FY2022MitigatedAnnual report
「Asset retirement obligations at period-end 21,436 19,539」
The balance of asset retirement obligations declined from ¥2,143.6 billion at the end of the previous fiscal year to ¥1,953.9 billion. The decrease includes the transfer of interests in Canada and the oil sands business. - FY2022-Q2MitigatedAnnual report
「Asset retirement obligations 21,262 18,996」
The balance of asset retirement obligations declined from ¥21,262 million at the end of the previous fiscal year to ¥18,996 million, reducing exposure to mine closure and asset retirement costs in connection with business transfers including JACOS. - FY2021WorsenedAnnual report
「The increase of ¥5,677 million resulting from the change in estimates was added to the balance of asset retirement obligations before the change.」
Following a change in the estimated costs of removing the offshore platform and closing the Iwafune-oki oil and gas field, asset retirement obligations increased from ¥15,660 million to ¥21,436 million, expanding the exposure to mine closure and asset retirement costs. - FY2020-Q3MitigatedAnnual report
「Asset retirement obligations 15,335 15,317」
The balance of asset retirement obligations decreased by ¥18 million, from ¥15,335 million at the end of the previous consolidated fiscal year to ¥15,317 million. - FY2019MitigatedAnnual report
「The other changes were mainly due to the reduction of asset retirement obligations in the fiscal year ended March 2019 following completion of the transfer of wells and a complete set of facilities relating to production operations.」
Asset retirement obligations were reduced following completion of the transfer of interests and facilities in the DEMO area and elsewhere, and the balance at period-end declined from ¥18,887 million to ¥15,593 million. - FY2019-Q3Decrease in Balance Due to the Reduction of Asset Retirement ObligationsAnnual report
「Fixed liabilities decreased by ¥18,178 million to ¥178,487 million, reflecting the decrease in deferred tax liabilities following the decline in the fair value of the securities held as described above, the decrease in long-term borrowings following the reclassification to current liabilities of borrowings due within one year, and the reduction of asset retirement obligations, among other factors.」
For asset retirement obligations relating to mine closure and removal after production ends, the reduction was disclosed as a factor contributing to the decrease in fixed liabilities. The balance declined from ¥18,664 million at the end of the previous consolidated fiscal year to ¥15,195 million. - FY2017First statedAnnual report
「The group's wells and mines currently in production will require mine closure work after production ends, and the group has recognized asset retirement obligations in connection with the retirement of those property, plant and equipment assets. Changes in the external environment, including new laws and regulations, contracts and market fluctuations, may affect the appropriateness of the group's asset retirement obligations.」
The company recognizes mine closure and removal costs after production ends as asset retirement obligations and indicates that estimates may fluctuate due to changes in laws and regulations, contracts and market conditions.