JDC News Release

Ultra-Deepwater Drillship Now in Operation in Petrobras Pre-Salt Oil Field off Brazil

Wed, 16 May 2012 14:00:00 +0900

Japan Drilling Co., Ltd.
Nippon Yusen Kabushiki Kaisha
Mitsui & Co., Ltd.
Kawasaki Kisen Kaisha Ltd.

Japan Drilling Co., Ltd. (head office: Chuo-ku, Tokyo; President: Minoru Murata) , Nippon Yusen Kabushiki Kaisha (head office: Chiyoda-ku, Tokyo; President: Yasumi Kudo), Mitsui & Co., Ltd. (head office: Chiyoda-ku, Tokyo; President: Masami Iijima), and Kawasaki Kisen Kaisha Ltd. (head office: Chiyoda-ku, Tokyo; President: Jiro Asakura) are participating in an ownership consortium for an ultra-deepwater drillship being used in the provision of charter services to Petroleo Brasileiro S.A. ("Petrobras"), the Brazilian state-owned petroleum company. Delivered on December 15, 2011, the vessel arrived at the drilling area in Brazil on February 4, 2012, and has been under charter to Petrobras since April 25.

Named "Etesco Takatsugu J," the drillship is the most advanced of its type in the world. It is capable of drilling in water depths of 10,000 feet (3,000 meters) and down to 30,000 feet (9,000 meters) below the seabed. The first well will be drilled in the Franco SW block in water approximately 2,000 meters deep about 200 kilometers off Rio de Janeiro. The area is located in pre-salt fields in which Petrobras holds an interest.

The drillship is owned by Etesco Drilling Services, LLC, a company that was established in the United States with the four Japanese companies holding equity stakes totaling over 85 percent. Etesco Drilling Services will provide vessel charter services to Petrobras for up to 20 years.

In recent years, there have been numerous discoveries of large oil and gas fields in pre-salt areas in Brazilian coastal waters, and there is worldwide interest in these massive deposits. The region concerned is believed to have the potential for further development and is a priority area for Petrobras. Through this business, the four Japanese companies will contribute to exploration for oil and gas in the promising fields.

The Drillship "ETESCO TAKATSUGU J" offshore Rio de Janeiro, Brazil

Reference: Press Release, June 16, 2009
Participation in project for ultra-deepwater drillship to be chartered by Petrobras for pre-salt exploration
http://www.jdc.co.jp/news/en/2009/participation-in-project-for-u.php

Notice:

This press release contains forward-looking statements. Readers should be aware that such statements are subject to risks and uncertainties, and that actual outcomes could differ because of changes in the business environment and other factors. This press release was not produced for the purpose of investment solicitation or any similar activity whatsoever, whether in Japan or overseas.

For further information:

Japan Drilling Co., Ltd.	Nippon Yusen Kabushiki Kaisha	Mitsui & Co., Ltd.	Kawasaki Kisen Kaisha, Ltd.
Kazuhiro Yoshinaga	Jiro Tanita	Kazuhisa Kawamura	Jitsuo Narita
Corporate Strategy Planning Dept.	Corporate Communications Group	Media Relations Department, Corporate Communications Division	IR & PR Group
Telephone: 03-5847-5862	Telephone: 03-3284-5188	Telephone: 03-3285-7540	Telephone: 03-3595-5083
Facsimile: 03-5644-5701	Facsimile: 03-3284-6382	Facsimile: 03-3285-9819	Facsimile: 03-3595-5001

JDC Announced the Signing of New Drilling Contract for "HAKURYU-10"

Tue, 21 Feb 2012 09:51:37 +0900

Further to JDC's flash report of a new contract award on December 28th, 2011 to its 95% owned Indonesian subsidiary P.T. Japan Drilling Indonesia by Total E&P Indonesie, JDC officially announced today that the approval from The Upstream Oil and Gas Executive Agency of Indonesia (BPMIGAS) has been obtained and the parties agreed to sign a new drilling contract for the rig "HAKURYU-10" owned by Japan Drilling (Netherlands) B.V., a consolidated subsidiary of JDC.

The contract duration is 2 years firm plus two set of 1 year option and the value is approximately US$110 million for 2 years firm period. The contract is expected to be signed around the end of February. The drilling operation will commence between April 2012 and June 2012.

JDC's Indonesian Subsidiary was Announced as a Tender Winner by Total E&P Indonesie

Wed, 28 Dec 2011 10:00:50 +0900

Total E&P Indonesie, Indonesian Subsidiary of the Paris based Total Group, has recently announced on its corporate website that JDC's Indonesian Subsidiary, P.T. Japan Drilling Indonesia, became a winner of their forthcoming drilling campaign in Indonesia. The duration of contract is 2 years firm plus 2 x 1 year option.

Execution of the formal drilling contract between Total E&P Indonesie and P.T. Japan Drilling Indonesia is subject to the authorization from the Indonesian Government.

Further information will be provided as and when they become available.

Update of President's Message

Fri, 09 Dec 2011 14:07:43 +0900

We, first of all, would like to express our deepest sympathies to all those affected by Tohoku Earthquake and Tsunami occurred in the past March. We sincerely hope for the earliest recovery of the afflicted areas.

As for any impact caused by this disaster to our JDC Group, the deep sea drilling vessel "CHIKYU", operated by our subsidiary Mantle Quest Japan Company Ltd., sustained some damages by the Tsunami while berthed at the Port of Hachinohe, Aomori. However, we were successful in commencing the drilling operations by "CHIKYU" offshore Sri Lanka from the early August with only a slightest delay as a result of the intense and devoted repair work effort.

Consolidated Financial Results for the Six Months Ended September 30th, 2011

During the first half period of this fiscal year (April 1st —September 30th, 2011), drilling operations by the Group's rigs underwent smoothly, and the utilization of the five offshore drilling rigs owned by our subsidiaries attained 100.0% compared to 92.7% recorded for the same half-year period in the last fiscal year.

Net sales therefore reached ¥16,923 million for this six months period (up 18.7% year-to-year). However, ordinary income was ¥3,936 million (down 11.2% year-to-year) and net income was ¥2,606 million (down 25.6% year-to-year) mainly due to a decline in equity in earnings of affiliates and foreign exchange losses by the rapid and drastic changes in Yen value.

Future Business Environment and Management Policy

Whilst the global economic outlook still remains uncertain, research organizations specialized in the energy sector such as the International Energy Agency (IEA) forecasts that overall global demand for crude oil will continue to grow. Steady increases in both rig utilization and dayrates for offshore drilling rigs are generally expected in the industry on such basis.

With the prospect of positive business environment, we are concentrating our resources on the following three growth strategies.

- Enhancing our offshore drilling rig fleet
- Full-scale entry into a deepwater market
- Active participation in the Methane Hydrate R&D Project conducted by the Japanese Government.

For our rig fleet enhancement, we have placed an order for a construction of a new premium-class jack-up drilling rig (provisionally named "HAKURYU-11") at Singapore in this spring and it is scheduled to be completed in March 2013.

"NAGA 1", a semi-submersible drilling rig operated by UMW JDC Drilling Sdn. Bhd., our Malaysian joint venture company, will be placed in a drydock in Japan next year to carry out a major upgrade/maintenance program called "Deepdish" conversion which is similar to the one applied to "HAKURYU-5" in 2009.

In addition, two new jack-up drilling rigs are now being constructed by Gulf Drilling International Limited, our Qatari joint venture company, to increase the number of their jack-up drilling rigs to a total of seven.

Also, a new ultra deepwater drillship, in which we participate as a minor equity holder, will be completed in December in a Korean shipyard and it will be immediately mobilized to Brazilian waters for its maiden operations.

For participating in the Methane Hydrate Project, "CHIKYU" will return to Japan after executing the current drilling program offshore Sri Lanka and will start drilling observation/test wells in the Nankai Trough early next year as a preparatory work for methane hydrate production test scheduled for the next fiscal year.

By implementing our growth strategies as above, JDC Group is determined to further strengthen its corporate value. We would sincerely hope to receive the continued understanding and support from all shareholders and other stakeholders.

December 2011
Minoru Murata
President and Representative Director

Announcement of Department name change

Thu, 29 Sep 2011 10:32:50 +0900

The Applied Technology Department, specialized in civil engineering with HDD method adopting experience and expertise of offshore drilling business, is called the "Horizontal Drilling Department" from October 1st, 2011.

New Drilling Contract Signed for Deep-Sea Drilling Vessel CHIKYU

Tue, 02 Aug 2011 16:27:06 +0900

JDC and Japan Petroleum Exploration Co., Ltd. (JAPEX) have signed a 1 billion yen contract to drill wells in deep-water off the coast of western Japan as a preparation work of the methane hydrate test production program for MITI's Agency for Natural Resources and Energy. The deep-sea drilling vessel CHIKYU, owned by Japan Agency for Marine-Earth Science and Technology and operated by JDC Group, will drill three observation wells and one test well. The drilling operation will commence in January/February 2012.

JDC Announced its New Contract for "HAKURYU-5"

Fri, 29 Jul 2011 15:24:36 +0900

JDC announced that its equity-method affiliate UMW JDC Drilling Sdn. Bhd. (UJD) and Petronas Carigari Sdn. Bhd. (PCSB) agreed to sign a new drilling contract for the rig "HAKURYU-5" owned by Hakuryu 5, Inc., a consolidated subsidiary of JDC.

The contract has a duration of one year with an option to extend the contract for one more year. It will commence upon the termination of the current drilling operation offshore Myanmar, followed by the mobilization to PCSB's designated location in Malaysia.

The contract value is approximately US$ 72 million.

Update of President's Message

Mon, 27 Jun 2011 14:16:08 +0900

I would like to express our sincere appreciation to all our shareholders and investors for the continuing support and understanding for JDC Group.

Before briefing our corporate activities for the year ended March 31, 2011, may I take this opportunity to convey our deepest condolences for all those affected by Tohoku Pacific Ocean Earthquake in March early this year. We sincerely hope for the earliest recovery of the afflicted areas.

Highlights of the Year Ended March 31, 2011

During the year, the market demand for offshore rigs saw a moderate increase due mainly caused by a gradual rebound of crude oil prices. On the other hand, however, factors such as an increase in rig supply caused by the addition of newly built rigs and the moratorium in the U.S. as a result of the oil spill of Gulf of Mexico have led to a marginal decline in the average global rig utilization to 75.4% from 77.1% of the same recorded in the previous year.

Despite of such general weakness in the market environment, JDC Group rigs continued to perform their optimal level operations overall throughout the entire year. Five rigs directly owned by JDC Group achieved 94.1% rig utilization. This is far above the average global rig utilization level, but less than 98.6% of the same recorded in the previous year.

As a result, JDC Group's consolidated net sales for the year was ¥28,290 million (down 22.7% from the previous year), with ordinary income of ¥7,234 million (down 48.8%), and net income of ¥5,609 million (down 44.1%).

Construction of New Premium Class Jack-up Rig

We are determined to further expand our operations globally and strengthen our offshore rig fleet to address the diverse needs of our customers. In this regard, JDC has placed an order for the construction of one new premium class jack-up rig with Keppel FELS Limited of Singapore on March 15th of this year. This new rig, provisionally named HAKURYU-11, is designed and built pursuant to the industry's most advanced concept and technology. It will be equipped with the latest drilling equipment and various new service packages. We believe the rig will demonstrate our ability to perform more safely, more efficiently and more cost effectively. HAKURYU-11 is now scheduled for completion and delivery at the end of March 2013.

Deepwater Drillship CHIKYU

Mantle Quest Japan Company Ltd. (JDC Group) manages and operates CHIKYU for Japan Agency for Marine-Earth Science and Technology (JAMSTEC) since the year 2008. From this August, a new exploration drilling campaign for CHIKYU will start at deepwater offshore area of the Democratic Socialist Republic of Sri Lanka for three firm wells plus two optional wells for Cairn Lanka Pvt. Ltd. As CHIKYU has mainly been engaged in scientific research activities, this forthcoming Sri Lanka operations will open a new business frontier for JDC Group's deepwater operations for commercial purpose.

CHIKYU was berthed in Hachinohe Port of Aomori Prefecture, Japan when a massive tsunami triggered by the Tohoku Pacific Ocean Earthquake hit the area, causing some damages to one of her thruster units. It is very fortunate that we have been able to complete the repair works successfully in a short period of time and CHIKYU is ready to sail out to Sri Lanka after the sea trial. We are working in full cooperation with JAMSTEC to make this forthcoming deepwater operations fruitful and successful.

Looking Ahead

With regard to the global trend for oil and natural gas demand, the International Energy Agency (IEA) and other specialized institutions have forecasted that such demand would continue to be forward-driven by the growing needs of China, India and other emerging countries and also by the recovery of world economy. It is therefore reasonably expected that exploration and development activities by oil and natural gas exploration companies in various offshore areas of the world will continue to be firmly sustained.

As such, we will maintain our commitment for global operations while reinforcing and fortifying our rig fleet, increasing profitability, implementing safer operations and further strengthening our management foundation. We will continuously improve and enhance our corporate value for the benefits of all concerned.

June 2011

Minoru Murata
President and Representative Director

Gulf Drilling International Ltd. is to build two new high-specification jack-up rigs

Wed, 11 May 2011 15:47:54 +0900

Gulf Drilling International Ltd. (GDI) of Qatar, an equity-method affiliate of Japan Drilling Co., Ltd. (JDC), has announced the award on May 11, 2011 to Keppel FELS Limited of Singapore (Keppel FELS) to build two high-specification KFELS B Class Bigfoot jack-up rigs, worth about US$393 million.

Scheduled for delivery in the third quarters of 2013 and 2014, the two latest rigs mark GDI's first new orders in six years, and will increase the company's jack-up rig fleet count to seven units.

These contracts of GDI follow closely after JDC's award of a new build contract for one high-specification KFELS Super B Class jack-up drilling rig with Keppel FELS on March 15, 2011 with the delivery slated for the end of March, 2013.

Announcement for "The 2011 off the Pacific coast of Tohoku Earthquake"

Thu, 17 Mar 2011 14:03:05 +0900

We would like to express our deepest sympathy and condolences to the victims of the earthquake and tsunami that struck the Pacific coast of the Tohoku region of Japan on March 11, and our sincere hope for the earliest relief and recovery of affected areas.

A summary of the impact of the disaster on our Group operations is provided below, along with details of the donation for the relief efforts.

Employees

The safety of all employees and staff of the Group has been confirmed.

Facilities and equipment

There has been no damage to rigs, offices or other equipment and facilities owned by the Group.

Information about the deep-sea drilling vessel "CHIKYU" (owned by the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) and our Group company Mantle Quest Japan Company Ltd. provides the management/drilling services), berthed at the Port of Hachinohe in Aomori prefecture at the time of the earthquake, is announced on the JAMSTEC website.

Business performance

In the event that it is deemed that the disaster may have a substantive impact on the business performance of the Group in any form, details will be released.

Donation

We will donate five million yen for supporting the relief efforts for those affected by the disaster.

JDC announces construction of new High Specification Jack-Up Rig

Tue, 15 Mar 2011 14:01:23 +0900

Japan Drilling Co., Ltd. today announced that the Company has entered into an agreement for the construction of one new high-specification jack-up drilling rig with Keppel FELS Limited as a solid part of the expansion of the Company's rig fleet pursuant to its growth strategy.

The KFELS Super B Class design is one of the world's deepest drilling rigs with drilling depth of 35,000 ft. This rig's leg structure is uniquely designed to provide enhanced robustness for operations at 425 ft water depth. The rig is engineered to operate in high ambient temperatures and can accommodate 150 personnel onboard. It features an offline stand building capability to handle drill pipes efficiently, a combined drilling load of up to 2,700 kips and a high capacity hook load of 2 million pounds, boosting overall rig performance and productivity.

Yuichiro Ichikawa, Representative Director and Senior Managing Executive Officer said, "We plan to further expand our business operations globally and strengthen our offshore fleet to address the diverse needs of our customers. The utilization of our existing rigs is currently at an optimal level and we believe that the KFELS Super B class will be an important addition to boost our capabilities and offerings to customers."

Update of President's Message

Fri, 24 Dec 2010 11:52:32 +0900

On December 17, 2009, Japan Drilling Co., Ltd.(JDC) was listed on the first section of the Tokyo Stock Exchange, thereby enabling us to embark on a new journey as a listed company.

Looking back over the last year since our listing, I am truly grateful for the abundance of support that we have received from all of our shareholders and other stakeholders.

Consolidated Financial Results for the six months ended September 30, 2010

The six months ended September 30, 2010 (April 1, 2010-September 30, 2010) saw early trends toward recovery in the offshore drilling rig market. From June 2010, however, that upward momentum began to reverse after the Gulf of Mexico Oil Spill, in the wake of the April 20 Deepwater Horizon rig incident, which led to a US government moratorium in latter May suspending new deepwater drilling operations.

Despite such conditions facing the market, JDC Group rigs continued optimal operations overall, and during the six months ended September 30, 2010, JDC-owned five rigs were operating at an average 92.7% rig utilization. These operations resulted in net sales of ¥14,253 million for the six-month period (down 26.4% year-on-year), ordinary income of ¥4,432 million (down 45.7% year-on-year), and net income of ¥3,504 million (down 39.8% year-on-year). This is mainly due to the result of declining rig utilization in comparison to the 100% rig utilization recorded for the same period of the last fiscal year ended March 31, 2010.

Looking ahead

The scale of the Gulf of Mexico Oil Spill was unprecedented, and an official declaration of the permanent sealing of the well was not issued until September 19, 2010, five months after the initial disaster. Despite the grave nature of this incident, none of the operations of JDC Group were directly impacted by this unfortunate event. That said, however, following the US government's lifting of its moratorium on October 12, it announced new safety management rules pertaining to deepwater drilling and is tightening regulation. Although the new rules apply only to operations within the US, there may be some impact on other offshore sites, and therefore, we would like to continue keep a close eye on such developments. In that regard, JDC's Health, Safety, Quality and Environmental (HSQE) Management System, which we have been implementing since 2008, mirrors the content of the Safety and Environmental Management System (SEMS) that the new US government rules stipulate must be drafted and implemented to reduce the potential for human and organizational error.

In regard to global trends concerning petroleum and natural gas, the International Energy Agency (IEA) and other specialized organizations predict that such demand will continue to be driven by growing needs of China and other Asian countries, which is thereby likely to spur exploration and development activities of petroleum and natural gas exploration companies. Given this outlook, and because the entire JDC Group stands committed to redoubling our efforts toward making our corporate group even more appealing to shareholders, we plan to further expand business operations globally, and enhance corporate value, by strengthening our fleet of offshore drilling rigs in a manner that better addresses the diverse needs of our customers.

Going forward, we sincerely appreciate the continued support of all JDC shareholders and other stakeholders.

December 2010
Minoru Murata
President and Representative Director

Drilling Contract with Cairn Lanka Pvt. Ltd. for "CHIKYU"

Fri, 12 Nov 2010 14:09:24 +0900

JDC signed a drilling contract with Cairn Lanka Pvt. Ltd., a subsidiary company of Cairn India Ltd. on November 12, 2010 for the deepwater drillship "CHIKYU". The contract is to drill three (3) firm wells and two (2) optional wells in offshore Sri Lanka, and is scheduled to commence in early July, 2011.

*"CHIKYU" is owned by Japan Agency for Marine-Earth Science and Technology("JAMSTEC").

Contract Extension for "NAGA 1" from Petronas Carigali

Mon, 04 Oct 2010 13:07:15 +0900

The Semi-submersible rig "NAGA 1", operated by UMW JDC Drilling Sdn. Bhd., an affiliate company of JDC based in Malaysia, has been awarded a modified five-year contract by PETRONAS Carigali Sdn. Bhd., a Malaysian state running oil and gas company.

The original contract of twenty wells extension option has been modified to a new five-year contract effective from late November 2010, after the completing drilling works of firm twenty wells.

The drilling works with modified contract commence in direct continuation of the rig's current contract. The contract value is approximately US$ 250 million.

Drilling Contract with Salamander Energy (Bontang) Pte. Ltd. for "HAKURYU-5"

Tue, 07 Sep 2010 14:31:08 +0900

JDC signed a drilling contract with Salamander Energy (Bontang) Pte. Ltd. on September 7, 2010 for the semi-submersible rig "HAKURYU-5". The contract is to drill one (1) firm well in offshore Indonesia. After completing the maintenance work of the rig in Singapore, "Hakuryu-5" will start its drilling operations from around early October 2010.