Appropriate Waste Disposal and Development of a Circular Economy

INPEX is a member of the international industry associations IOGP and Ipieca, and we have obtained industry standards and best practices related to environmental conservation, including measures against pollution, waste management, and efficient resource utilization. In Japan, we also participate in the Working Group on Circular Economy of Global Compact Network Japan, primarily for the purpose of gathering information. The guidance and knowledge gained from these frameworks are reflected in our internal operations and target setting.

We actively practice the 3Rs of waste management—reduce, reuse, and recycle—at our projects, offices, and other business sites to reduce our environmental impacts.

We also appropriately manage, treat, and dispose of waste generated by our operations in line with the laws and regulations of countries in which we operate our projects. We create waste management plans for waste generated at our operator project sites that incorporate legal requirements, risk management methods, treatment and disposal methods, and audit plans.

When we are unable to viably reuse industrial waste generated by our operations, we appropriately treat and dispose of it via licensed waste service providers. We also verify proper treatment and disposal through regular visits to and inspections of waste service providers.

Since FY2023, for waste generated at each of our business sites, we have introduced classifications in accordance with GRI 306. We also seek to understand the detailed waste treatment process up to final disposal and the status of disposal through visits to and interviews with waste service providers and other initiatives. Through these efforts, we establish measurable quantitative targets across the INPEX Group. At the same time, we continue to further reduce the amount of waste for final disposal and promote reuse and recycling to advance appropriate waste management.

The amount of waste generated varies significantly depending on the operations at each business site, such as the presence or absence of drilling operations. To identify issues relating to waste management in our operations, as well as to advance initiatives for the efficient use of resources including reuse and recycling, we have categorized the waste generated by regular and non-regular operations^*1 and have been aggregating waste data in accordance with the GRI 306 reporting categories since FY2023. Of the approximately 18,000 tons of waste generated in regular operations, we recover approximately 16,000 tons through collection, recycling, and other operations. Waste generated in regular operations increased by approximately 6,000 tons year on year. This was due to the planned shutdown and accompanying maintenance and cleaning activities at the Ichthys LNG Project. A large portion of the waste generated is appropriately recovered, such as through collection and recycling. We generated approximately 824 tons of cuttings in drilling operations, a significant reduction from the approximately 14,000 tons generated in FY2024. This was in line with the decrease in the number of drilling operations. We carry out appropriate treatment, such as recycling, on the cuttings generated, with none being disposed of through final landfill in FY2025.

In FY2024, to further ensure the fulfillment and advancement of our commitments, we established "Maintain a final landfill rate of 1% or less for drilling cuttings" and "Maintain recovery rate of 70% or more of waste generated by regular operations" as Group-wide measurable quantitative targets. In FY2025, our landfill rate was 0% and our recovery rate was 87%. We will continue to work toward achieving and maintaining our targets.

We will actively develop a circular economy in addition to our usual appropriate waste management and further implementation of the 3Rs.

Well drilling operations in oil and natural gas development generate geologically derived drill cuttings. Such cuttings can be said to be waste unique to oil and natural gas development, and they are often sent to a landfill for final disposal. Cuttings from our projects in Japan often undergo appropriate treatment by waste service providers and are reused as improved soil, including being used as roadbed and backfill materials.

CO2-methanation, which we have been studying for commercialization since FY2013, was selected in FY2021 as a project under the theme of Development of Technologies for CO2 Reduction and Utilization (FY2021 to FY2026) by the New Energy and Industrial Technology Development Organization (NEDO). We have started constructing Japan's first and one of the world's largest test facilities that is thermally insulated and isothermal, capable of producing 400 Nm3-CH4/h. Currently, construction and commissioning of the test facility have been completed, and we have embarked on the demonstration test. CO2 recovered from the Nagaoka Field Office will be used to produce synthetic methane, which will then be introduced into our city gas pipelines and delivered to users.^*2 The CO2-methanation technology established through the demonstration test and other initiatives is expected to contribute toward the creation of a circular economy.

We implement regular education and training for new graduate engineers in Japan to ensure appropriate waste management practices. Through this education and training program, we aim to improve understanding of waste management laws, regulations, and systems, industrial waste classification and management methods, and 3Rs practices, and continuously implement related initiatives.