News Release 2018

NEWS

News Release 2018

2018-07-19 "HAKURYU-11" started its drilling operation offshore Vietnam.

The jack-up rig "HAKURYU-11" has started the drilling operation based on the contract with Hoang Long Joint Operating Company and Hoan Vu Joint Operating Company on June 19 at offshore Vung Tau, Socialist Republic of Vietnam.

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Jack-up rig
「HAKURYU-11」
Location: Offshore Vung Tau,
Socialist Republic of Vietnam

2018-06-22 Regarding our filing of a petition for the commencement of corporate reorganization proceedings

We appreciate your continued support and guidance to our business.

This notice is to inform you that our company, Japan Drilling Co., Ltd., has filed a petition with the Tokyo District Court today for the commencement of corporate reorganization proceedings under the Corporate Reorganization Act of Japan. Accordingly, the Court has issued a temporary restraining order to prohibit repayments as well as a supervision/prohibition order and a comprehensive prohibition order.

1. Background to the Filing of the Petition for Corporate Reorganization

In the midst of the long stagnate offshore drilling market, our company has continued to improve our business through independent efforts such as cost reduction and receiving orders for new drilling projects. However, our company became insolvent after recording operating losses for 3 consecutive terms as of the term ending in March 2018 as well as recognizing the impairment losses concerning the offshore drilling rig, "HAKURYU-14", transferring the loss provision for the "HAKURYU-15" construction project and so forth during the term ending in March 2018. This made the business environment surrounding our company even more severe, leading to our decision this time to file a petition for legal proceedings to reconstruct the business of our company.

Our company intends to continue the offshore drilling business in the future and make our best effort to offer our clients service in the same manner as we have done so far. Your understanding is highly appreciated.

2. Regarding Corporate Reorganization Proceedings

A corporate reorganization proceeding is a proceeding to maintain and rehabilitate the business of a company experiencing difficulties at the same time as coordinating the interests among the creditors, shareholders and other interested parties, by way of establishing and performing a reorganization plan under the supervision of a court. Therefore, a corporate reorganization proceeding is a process to reconstruct the business of a company. Our company is continuing its business just as we did before filing the petition, in cooperation with our subsidiaries and affiliates in and outside Japan.

In the upcoming corporate reorganization proceedings for our company, payment of debts to the business partners who are necessary for the continued operation of the offshore drilling rig is permitted even after the filing of the petition for the commencement of reorganization proceedings, subject to the condition that performance of business transactions will be continued under the terms and conditions similar to those before the petition. Our company intends to make every possible effort to continue the rig operation in the future as we have done so far.

3.Inquiries

For any questions regarding this matter, please contact the person inside our company who has been the contact point with your company.

Sincerely,

Yuichiro Ichikawa
President and Representative Director
Japan Drilling Co., Ltd.

2018-05-01 JDC started the drilling operation utilizing "HAKURYU-5" in Vietnam.

The semi-submersible rig "HAKURYU-5" arrived at offshore Vung-tau in Vietnam on April 28th, and started the drilling operation on May 1st.

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Semi-submersible rig
「HAKURYU-5」

2018-03-28 JDC started its operation utilizing "CHIKYU"

Based on the contract with JMH, JDC started its operation relative to the Second Offshore Methane Hydrate Production Test finished on June 2017, by utilizing Deep-sea Drilling Vessel "CHIKYU" (Owner : JAMSTEC) off the coast of Aichi and Mie Prefectures.

JMH : Japan Methane Hydrate Operating Co., Ltd.
JAMSTEC : Japan Agency for Marine-Earth Science and Technology

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Deep-sea Drilling Vessel "CHIKYU"
(Owner: JAMSTEC)

2018-02-28 The winding-up process commences for Malaysian Joint Venture, UMW JDC Drilling Sdn. Bhd. (JDC's Affiliate)

A joint venture was entered into between UMW Corporation Sdn. Bhd. (currently UMW Oil & Gas Corporation Berhad, and hereinafter "UMW") and JDC based on the co-ownership of the semi-submersible drilling rig "NAGA 1" (formerly "HAKURYU-3"). In order to promote this joint venture business in Malaysia, in April 2005, UMW JDC Drilling Sdn. Bhd. (hereinafter "UJD") was established in Malaysia by the two parties. However, by following the termination of this joint venture, on 26 February 2018, UMW and JDC have commenced the process of voluntary winding-up.

2018-02-12 JDC has started the drilling operation utilizing "HAKURYU-10" based on the contract with North Oil Company ("NOC").

The jack-up rig "HAKURYU-10" has started the drilling operation based on the contract with NOC on February 12 at Al-Shaheen Oil Field, offshore Qatar.

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Jack-up rig
「HAKURYU-10」
Location: Al-Shaheen
Oil Field, offshore Qatar

2018-01-01 "SAGADRIL-1" started the drilling operation

The jack-up rig "SAGADRIL-1" started the drilling operation in the Middle East.

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Jack-up rig
「SAGADRIL-1」