Inpex Corporation · TSE:1605
Inpex — Investor Presentation (July 2009)
30 slides from Inpex's investor presentation, Jul 3, 2009
Slide 1: INPEX Business Strategy and Two LNG Projects - Ichthys and Abadi
INPEX Busin ness Strategy and d Two T LNG Project P j tst ‐ Ichthys I hth and d Abadi Ab di INPEX COR RPORATION July 3, 2009 Ageenda Mid‐to‐long Term Business B Strategies Gas Market Ichthys LNG Projecct Abadi Ab d LNG Projectt 1
Slide 2: Cautionary Statement
Cautionary y Statement This presentation includes forward‐looking forward lookingg information that reflects the plan and expectations of the Company. Such forward d‐looking information is based on the current assumptions and judgments of the Company in light of the information currently tl availabl
Slide 3: Awareness of The Business Environment / Our Strength
Awareness of The Bu usiness Environment Recent international financial crisis an nd a decrease in energy gy demand Risks of rapidly and drastically fluctuuating oil and gas prices Increasing priority of natural gas in reesponse to environmental issues Increasingly I i l intense i t competiti
Slide 4: Strong Reserve/Resource Base
Strong Reserve//Resource Base 3,348 Reserve Life** （RP Ratio） 5,000 4,774 4,500 Possible Reserves Gas + 4,000 1,823 Contingent Resources 3,500 （44%） 3,176 3,176 3,000 MMBOE 2,500 32.3 years 2,000 1 598 1,598 1,500 Liquids 484 484 484 2,651 1,000 10.8 （56%） 500 1 114 1,114 1 114 1,114 years 1 114 1,1
Slide 5: Net Production Volume Projection
Net Production Production* Volume V Projection Frade Oil Field Long term production target +4 Thousand BOED (Started in Jun. 2009) Tangguhh LNG G (800‐1 000 thousand BOED) (800‐1,000 1000 +6 Thousand BOED (Started LNG producction in Jun. 2009 and expected to ship 1st cargo soon) 900 Van Gogh O
Slide 6: World Natural Gas Demand Projection / LNG Demand Projection in Asia
World Natural Gas Demand Projection TCF Projection 180 World Naturral Gas Demand Growth CAGR（2006～2030）: 1.59% 160 Asia/Oceaniia Natural Gas Demand CAGR（2006～2030）: 3.17% 140 120 100 80 60 40 20 0 1990 2005 2006 2010 2015 2020 2025 2030 Asia/Oceania Europe （w/o Russia） North America Middlee East Rus
Slide 7: Asia Pacific New & Expanded LNG Projects
Asia Pacific New & Expa anded LNG Projects Startup from mid-2010s onward Area Project Capacity (mtpa) ( ) < Australia > Australia-Pacific LNG 7.0 Gorgon 15.0 GLNG 3.5 Gladstone LNG 15 1.5 Ichthys 8.4 Pluto Expansion 4.8 QC LNG 74 7.4 < Other Asia Pacific Area> Abadi 4.5 Donggi Senoro LNG 2.0 PNG LNG
Slide 8: LNG Supply & Demand in Japan / LNG Price Formula
LNG Supply & Demand D in Japan mtpa 90 Supply & Demand Gap 80 (approxx. 25mtpa in 2020) 70 60 50 40 30 20 10 Contracted Supply (assumption) LNG Demand 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 14 Source: Wood Mackenzie LNG Pricee Formula Asian LNG Prices are g general
Slide 9: Gas Marketing
Gas Ma arketing Japanese Electric El and dCCity GGas Companies C are favorable f bl buyers because of their longsttanding track records as LNG users andd stable t bl fi financial i l statu t tus. In I addition, dditi supply l tto Japanese domestic gas markett by utilizing our gas infrastructures c
Slide 10: Ichthys Project Location / Extent of Ichthys Field
Ichthys Projeect Location Abadi WA‐285‐P Ichthys Field WA 285 P Ichthys Field WA‐285‐P and Adjacent Area 18 Extent of Icchthys Field Long side: approx. 40km Short side: approx. 15km+ Omiya Area: approx. 600km2 Kashiwa M Minamikoshigaya M t d Matsudo Fussa Ichikawa Ikebukuro Ueno Mitaka Nakano T Tach
Slide 11: Brief Summary of Permit / Exploration History
Brief Summa ary of Permit Permit Holders: INPEX Brow wse Ltd. wse, Ltd (76%) TOTAL E&P Australia (24%) Term: 6 y years + 5 y years ((Currently y in n 1st Extension Sep.6, p 2004 ‐ Sep.5, p 2009)) * Primary Term was 6 years from 19988. Plan is to apply for 2nd Extension for 5 years. Location Bl
Slide 12: Outline for Development Concept / Overall Development Image
Outline for Devellopment Concept LNG Production: approx. 8.4 millio on ton per year Condensate Production: approx. 1000,000 barrel per day LPG Production: approx. 1.6 million n ton per year Subsea Production Wells: 30 wells at Brewster, Brewster 20 wellls at Plover Reservoir Depth: approx.
Slide 13: Offshore Facility Layout / Subsea Well and Infield Flowline
Offshore Faccility Layout CPF OFFTAKE TANKER FPSO SUBSEA CONDENSSATE TRANSFER LIN NE Image 24 Subsea Well and Infield Flowline CPF FPSO Drill Cen nter Flow Line Development Well Water Depth: approx. 250m Image 25
Slide 14: CPF/FPSO / Gas Export Pipeline
CPF/F FPSO Flare Stack Flexible Riser • 100m x 100m. 1 100m One of the biggest size in the world (similar size to GOM Thunder Horse) Image • Living Quarter Q (150 personnel capacity) will be installed in South sid de • Flexible Riser will be installed in North side. • 3500mx58m • Liq quid from CPF w
Slide 15: LNG Plant Site Location I and II
LNG Plant Siite Location I Decided Onshore LNG Plant Site at Darwin D – Announcement was issued at Darwin datte of 26th Sep. Sep 2008 – Messrs. Martin Ferguson, Minister for Ressources and Energy CW, Minister for Tourism and Paul Henderson Chief Minisster NT attended 28 LNG Plant Site Location II
Slide 16: LNG Plant Layout / Module Offloading Facility
LNG Plan nt Layout Image 30 Module Offloading Facility Image 31
Slide 17: GHG (Greenhouse Gas) Management I and II
GHG (Greenhouse Gas) G Management I Situation in Australia ‐ Carbon Capture and Storage (CC CS) Law (Offshore Petroleum Amendment (Greenhouse Gas Storage)) S became effective in Nov. 2008 ‐ CCS acreages released in Mar. 2009 ‐ Carbon Pollution Reduction Sch heme ((CPRS: emissions trading g scheme)
Slide 18: Contribution to Local Community / Development Schedule
Contribution to Local L Community Fred’s Pass Rural Show (May y 2009) Djarindjin Signing Ceremony (April 2009) 34 Developmen nt Schedule Submission of FID First LNG Application A l off additional Environmental Approval information Government Approval Public Comments To obtain Environm ment Approval
Slide 19: Project Organization Chart
Project Organ nization Chart 24% 76% TOTAL E&P Australia WA‐285‐P INPEX Brow wse, Ltd. Joint Venture (Operato or) Tokyo Head Office Ichthys Project Committee Managing Director Perth H d off P Head Project j t Deputy Head of Project Offshore Onshore Project Corporate Coordination Coordination Coordin
Slide 20: Masela PSC Block / Exploration Milestones
Masela PSC P Block Kai Banda Banda Sea Sea a Islands Aru 0 200km Islands Tanimbar Islands Saumlaki Indonesia Masela Is Dili Massela PSC Block East Timor Abadi Timor Sunrise Evaans Shoal Barossa Caldita C ldit Timor Sea Kupang Laminaria E Evans Shoal South Australia Corallina Buffalo Elang-Kakatua Ba
Slide 21: Abadi Gas Field I and II
Abadi Gaas Field I Abadi Gas/Condensate Field d North - Water Depth: 400 ‐ 800m m 4 5 West - Reservoir Depth: 3,700 ‐ 3,900m 6 2 7 SW - Areal closure: more than 000km2 n 11,000km 3 1 South Discovered gas and condenssate in Abadi‐1 exploration well in 2000 Drilled 6 additional appraisaal wells,
Slide 22: Production Sharing Contract / Plan of Development
Production Sha aring Contract Contractor: INPEX Masella, Ltd. (100%) Effective Date: Nov. 16, 19988 Contract Period: 30 years Exploration Period: oceed to Development and Production 10 years (pro Period in case of commercial discovery) Contract Area : 3,221.3km2 (aalready had done twice pa
Slide 23: Floating LNG / FLNG Layout
Floatin ng LNG Development Facilities p Development Scheme : Subsea Production System y + Floating g LNG Development Well : 18 production wellls (Directional Wells from 5 Drilling Center) Floating LNG : Loading LNG Plan nt, LNG Storage Tank, and Loading facility on conventional ti l FPSO O Flare Sta
Slide 24: Development Schedule / Organization of Project Implementation
Developmen nt Schedule Final Investment Decisio on（FID） First LNG Public Announcement Local hearing Government Go ernment Environmental & Environmental Social Impact Permit Approval Assessment FEED Detailed l d Engineering E EPC Procurement Floating oa i g LNG NG Decision Subsea Production Construct
Slide 25: Appendix: Cost Calculation Accuracy
Appe endix i Cost Calculattion Accuracy From FEED Phase to Development Phase Phase/Class and Cost Calculation Accuracy Estimate Accuracy vs Phase/Class Final Investment 90/10 Concept Select EED Decision FE Decision CS FEED FID Class 1 FEED Engineering Detailed Engineering Assess (S (Screening) i ) C
Slide 26: Price Trends of Materials & Machineries
Price Trends of Mateerials & Machineries Monitoring price trends d off materials ls, machineries, h llabor b wages and d various services based on the analyssis of various cost data. Development D l t budget b d t which hi h reflects fl t the th characteristics h t i ti off the th Project P j t
Slide 27: Market Trend / Condensate Marketing
Markett Trend M a r k e t Tr rend ( 2 0 0 6 / 3 Q - 2 0 09 0 /1Q) 140 3Q = 100) 135 130 125 dex (2006/3 120 Engineering 115 Materials & 110 Machineries Bulk Materials Price Ind 105 100 Logistics Expenses 95 Labour Rates 90 2006-3Q 2006-4Q 2007-1Q 2007-2Q 2007-3Q 2007-4Q 2008-1Q 2008-2Q 2008-3Q 2008-
Slide 28: LPG Marketing / Taxation Scheme
LPG Ma arketing Market – U.S. U S iis the largest la e t LPG consumer o u e in in the world, o ld while hile in i Asia‐Pacific, A ia Pa ifi Chi China, a Japan and India are the main consu umers in the order of consumption. – Japan is the world largest LPG imp porter importing with about 14 million
Slide 29: Ichthys Project History / Abadi Project History
Ichthys Projject History INPEX Browse, Ltd. 1998 1999 2000 2001 2002 20 003 2004 2005 2006 2007 2008 2009 2010 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Contract Year Y1 Y2 Y3 Y4 Y5 Y6
Slide 30: Current Status of other Companies' FLNG
Current Status of otheer Companies Companies’ FLNG FLEX EX LNG: G LNG G Producer d (LNG ( GP) G ) (1.7 (1 ‐ 1.95 1 MTPA) A) – Awarded Samsung a contract to build 4 Hulls – Complete o p e e FEED EE o of Generic e ig LNGP iin thee Q1 e e i Design Q oof 2009 – Reviewing the projects in Nigeria, PNG,