Inpex Corporation · TSE:1605
Inpex — FY2023 Earnings Presentation
44 slides from Inpex's earnings presentation, Feb 13, 2024
Slide 1: Financial results for the year ended December 31, 2023 - Appendix
Financial results for the year ended December 31, 2023 Appendix February 13, 2024
Slide 2: Subsidiaries and Affiliates
Subsidiaries and Affiliates 68 Consolidated Subsidiaries Major Subsidiaries Country / Region Ownership Phase Accounting Term INPEX Ichthys Pty Ltd Australia 100% Production December INPEX Oil & Gas Australia Pty Ltd Australia 100% Production December Japan Oil Development Co., Ltd. UAE 100% Producti
Slide 3: Segment Information
FY2023 Segment Information*1 Oil and Gas Overseas Oil and Gas Other*2 Total Adjustments*3 Consolidated*4 Japan Ichthys Other Projects Projects (Millions of yen) Net sales 239,872 393,619 1,529,555 44,052 2,207,099 (41,396) 2,165,702 Segment income (loss) 41,938 302,651 43,594 (10,240) 377,943 (6,412
Slide 4: Net Production Volume (January to December 2023)
Net Production Volume (January to December 2023) Crude Oil, Condensate and LPG （383 thousand BOE/day） 2 O&G Japan 9 3 2 （1%） O&G Overseas 380 （99%） Crude Oil 9 2 and Gas Total Ichthys PJ (630 thousand 3 BOE/day) 253 278 34 （9%） O&G Japan Other PJ 347 （91%） 20 （3%） 253 O&G Overseas 278 Natural Gas 61
Slide 5: Electric Power Generation Capacity for Interest & Electric Power Generated
Electric Power Generation Capacity for Interest & Electric Power Generated Power Generation Capacity for INPEX’s share Power Generation Capacity Country Status INPEX’s share Power Generation Capacity for INPEX’s share Koshijihara Gas fired Power Plant Japan 100% 55MW 55.0MW Total gas fired power 55M
Slide 6: Sales Volume (Forecast)
FY2024 Sales Volume (Forecast) FY2023 FY2024 Change % Change (actual) (forecast) Crude oil (thousand bbl) *1 138,024 135,344 (2,680) (1.9)% Natural gas (million cf) *2 479,814 524,061 44,246 9.2% Sales Volume Overseas 387,974 427,717 39,743 10.2% 91,840 96,343 4,503 Japan 4.9% (2,461 million m3) (2,
Slide 7: Shareholder Returns
Shareholder Returns DPS Dividends, Share Buybacks and Total Payout Ratio (Unit:¥) ■ Dividends (billion yen) ■ Share Buybacks (billion yen) △ Payout Ratio (Dividends) ○ Total Payout Ratio * The total payout ratio for FY2020/12 is NA due to net loss. Copyright © 2024 INPEX CORPORATION. All rights rese
Slide 8: Reserves & Production Indices
Reserves & Production Indices Production Cost per BOE Produced*1 Reserve Replacement Ratio (3-year average)*2 (US$/boe) (%) Incl. royalty Excl. royality 15.2 76% 13.3 11.3 46% 37% 5.4 5.8 5.6 FY2021 FY2022 FY2023 FY2021 FY2022 FY2023 *1 Production cost per boe produced: Production cost divided by bo
Slide 9: Reserves
Reserves Reserves *1 Proved Reserves by Region (MM boe) （%） 6,706 6,505 6,311 6,213 6,233 3 2,620 2,775 2,666 2,476 2,661 22 27.1 years *4 FY2023/12 4,086 3,730 3,645 3,738 3,572 15.5*4 Years 75 FY2019/12 FY2020/12 FY2021/12 FY2022/12 FY2023/12 Japan Australia & Southeast Asia Europe, Abu Dhabi & ot
Slide 10: Upside Potential from Proved & Probable Reserves
Upside Potential from Proved & Probable Reserves (MM boe) Probable Reserves Lower Zakum, Abadi, Proved Undeveloped Reserves Ichthys, etc. Proved Developed Reserves Abadi, Ichthys, etc. 2,661 27.1 1,148 1,148 Years*1 15.5 Years*1 2,424 2,424 Proved Developed Proved Undeveloped Proved Reserves Probabl
Slide 11: Factor Analysis of Change
Factor Analysis of Change * Factor Analysis of Change in Proved Reserves*1 Factor Analysis of Change in Probable Reserves*2 (MM boe) （MM boe） 62 14 177 8 0.1 (12) (230 ) 3,738 2,661 3,572 2,476 December 2022 Extensions and Revisions of Impact of Production December 2023 December 2022 Extensions and
Slide 12: Definition of Proved Reserves and Probable Reserves
Definition of Proved Reserves and Probable Reserves Proved Reserves Our definition of proved reserves is in accordance with the SEC Regulation S-X, Rule 4-10, which defines proved reserves as the estimated quantities of oil and gas, which, by analysis of geoscience and engineering data, can be est
Slide 13: Climate Change Response Goals and GHG Emissions
Climate Change Response Goals and GHG Emissions 2050 2030 Scope 3 Our Climate Change NET ZERO* 30% OR MORE* Work together with Response Goals reduction of all relevant stakeholders to in absolute emissions net carbon intensity address challenges (Scope 1+2) across the value chains * on INPEX equity
Slide 14: Project Data
Project Data
Slide 15: List of Main Projects (1/3)
List of Main Projects (1/3) Crude oil LPG production Participating production Gas production Fields / Projects name Contract Type (Thousand Phase Interest (Thousand (MMcf/day)*2 bbl/day)*2 bbl/day)*2 Australia WA-285-P*2 and others*1 Concession 93.820 - - - Exploration Upstream Upstream natural WA-5
Slide 16: List of Main Projects (2/3)
List of Main Projects (2/3) Crude oil production LPG production Gas production Fields / Projects name Contract Type Participating Interest Phase (Thousand bbl/day)*2 (Thousand bbl/day)*2 (MMcf/day)*2*3 Middle East Upper Zakum Oil Field etc. Concession 12 Production Lower Zakum Oil Field Concession 1
Slide 17: List of Main Projects (3/3)
List of Main Projects (3/3) LPG production Crude oil production Fields / Projects name Contract Type Participating Interest (Thousand Gas production*2 Phase (Thousand bbl/day)*2 bbl/day)*2 Japan Crude oil & condensate: Approx.2.5 million Minami-Nagaoka Gas Field, etc.*1 Concession - - Production App
Slide 18: Project Highlights – Ichthys LNG Project
Project Highlights – Oil and gas business – CORE AREA #1 Australia Ichthys LNG Project Overview of the Project Exploration Blocks in the Vicinity of the Project Drilling of Production Wells INPEX holds participating interests in 16 exploration blocks in the vicinity of the Currently drilling t
Slide 19: Project Highlights – Prelude FLNG and Australian Oil Fields
Project Highlights – Oil and gas business – CORE AREA #1 Australia Prelude FLNG Project INPEX Oil & Gas Australia Pty Ltd Operator: Shell Milestones Concession Agreement: Valid until end of production Made FID in May 2011 Wells opened and initial phase of production commenced in December 2
Slide 20: Project Highlights – Bayu-Undan
Project Highlights – Oil and gas business – CORE AREA #1 Australia TL-SO-T 19-12 Block (Bayu-Undan Gas and Condensate Field) INPEX Sahul, Ltd. Operator: Santos PSC: Until June 30, 2024 Milestones In February 2004, commenced sales of condensate and LPG In August 2005, entered into an LNG Sa
Slide 21: Project Highlights – Abu Dhabi
Project Highlights – Oil and gas business – CORE AREA #2 Abu Dhabi Abu Dhabi Onshore Concession Operator：ADNOC Onshore* Concession agreement：Until 2054 * Operating company owned by companies with participating interests. JODCO Onshore Limited has a 5% share in Further development study is ongo
Slide 22: Project Highlights – Abadi LNG Project
Project Highlights – Oil and gas business – CORE AREA #3 Southeast Asia Abadi LNG Project INPEX Masela, Ltd. Operator : INPEX PSC : Until November 15, 2055 (Signed extension in October 2019) Production Capacity Total output of natural gas 10.5 million tons per year (LNG equivalent) including
Slide 23: Project Highlights – Vietnam and Sebuku Blocks
Project Highlights – Oil and gas business – CORE AREA #3 Southeast Asia Blocks 05-1b and 05-1c (Sao Vang and Dai Nguyet Gas Field) INPEX Con Son Co., Ltd. Operator:Idemitsu Gas Production (Vietnam) PSC: Until November 17, 2034 Expected Production Volume Gas: approx. 1.5 billion m3 per annum
Slide 24: Project Highlights – Malaysia Blocks
Project Highlights – Oil and gas business – CORE AREA #3 Southeast Asia Block 4E (deep water block) INPEX Malaysia E&P 4E Sdn. Bhd. Operator : INPEX Malaysia E&P 4E Sdn. Bhd. PSC : Until February 14, 2059（1st exploration period: three years until February 14, 2026, 2nd exploration period: two ye
Slide 25: Project Highlights – Natural Gas Business in Japan
Project Highlights – Oil and gas business – CORE AREA #4 Japan Natural Gas Business in Japan Natural Gas Sales Volume (1m3 =41.8605MJ) FY2023 (actual): 2.04 billion m3 FY2024 (forecast): 2.22 billion m3 Distribution outlook: 2.70 billion m3 in 2030 Naoetsu LNG Terminal Commenced commerci
Slide 26: Project Highlights – Snorre Project in Norway
Project Highlights – Oil and gas business – CORE AREA #5 Europe Snorre Project etc. in Norway Snorre Oil Field Operator: Equinor Production Start-up: 1992 Milestones • 2022: Completed Snorre Expansion Development Construction Project • May 2023: Hywind Tampen (floating offshore wind power) s
Slide 27: Project Highlights – Kashagan and ACG Oil Fields
Project Highlights – Oil and gas business – OTHER AREAS Kashagan Oil Field and others INPEX North Caspian Sea, Ltd. Operator: North Caspian Operating Company (NCOC) PSA: Until the end of 2031* (Kashagan) Milestones Oil shipments at Kashagan Oil Field commenced in October 2016 Operations on
Slide 28: Project Highlights – BTC Pipeline and Iraq Block 10
Project Highlights – Oil and gas business – OTHER AREAS BTC (Baku-Tbilisi-Ceyhan) Pipeline Project INPEX BTC Pipeline, Ltd. Operator : BP Oil export volume*: approx. 623 thousand bbl/d *Average transportation volume for Nov 2023 Milestones Acquired a 2.5% participating interest in the oper
Slide 29: Net Zero Businesses #1 Hydrogen & Ammonia
Project Highlights – 5 net zero businesses – Net Zero Businesses #1 Hydrogen & Ammonia Integrated Demonstration of Hydrogen & Ammonia Production (Kashiwazaki City, Niigata Prefecture, Japan) In October 2022, took a final investment decision (FID) on drilling operations and the construction of faci
Slide 30: Net Zero Businesses #2 CCUS
Project Highlights – 5 net zero businesses – Net Zero Businesses #2 CCUS (Reduction of CO2 emissions from upstream operations) CO2EOR Demonstration (Agano City, Niigata Prefecture, Japan) In April 2021, commenced a joint study with JOGMEC for a CO2 enhanced oil recovery pilot test. Commenced dri
Slide 31: Net Zero Businesses #3 Renewable Energy
Project Highlights – 5 net zero businesses – Net Zero Businesses #3 Renewable Energy Offshore Wind Power Project （Europe） Luchterduinen Offshore Wind Farm Moray East Offshore Wind Farm Borssele III/IV Offshore Wind Farm Year of participation : 2022 Year of participation : 2023 Year of particip
Slide 32: Geothermal Power Projects in Indonesia
Project Highlights – 5 net zero businesses – Net Zero Businesses #3 Renewable Energy Geothermal Power Projects in Indonesia Muara Laboh Geothernal Power Project Rajabasa Geothermal Power Project Year of participation : 2021 Year of participation : 2022 Operator:PT Supreme Energy Muara Laboh
Slide 33: Net Zero Businesses #4 Carbon Recycling & New Business
Project Highlights – 5 net zero businesses – Net Zero Businesses #4 Carbon Recycling & New Business Methanation (Nagaoka City, Niigata, Japan) Commenced construction of CO2-methanation test facilities capable of producing 400 normal cubic meters of methane per hour, one of the world’s largest prod
Slide 34: Progress Updating Clean Hydrogen/Ammonia Production Plant
Progress Updating Clean Hydrogen/Ammonia Production Plant Injection/Observation/Production Wells Rig 110-ME Copyright © 2024 INPEX CORPORATION. All rights reserved. 33
Slide 35: Progress Updating Clean Hydrogen/Ammonia Production Plant
Progress Updating Clean Hydrogen/Ammonia Production Plant CO2 CO2 Capture Compression Hydrogen Production Ammonia Production Control Hydrogen Room Power Feed Gas Receiving Generation Copyright © 2024 INPEX CORPORATION. All rights reserved. 34
Slide 36: Renewable Energy Business in Australia Enel Green Power Australia
Renewable Energy Business in Australia Enel Green Power Australia EGPA Assets Enel Green Power Australia has a total of 309 MW Flat Rocks Solar Project of solar power projects in operation. Also (Under construction) Capacity: 75.6MW Wind Project constructing 76 MW of wind farm and 93 MW of solar fa
Slide 37: Other Data and Information
Other Data and Information INPEX
Slide 38: Production Sharing Contracts
Production Sharing Contracts 1. Cost Recovery Portion Non-capital expenditures recovered during the current period Cost Recovery Portion capital expenditures recovered during the current period Recoverable costs that have not been recovered in the previous periods Host Country Profit Oil Contr
Slide 39: Accounting on Production Sharing Contracts (JGAAP)
Accounting on Production Sharing Contracts (JGAAP) Cash Out Assets on Balance Sheet Income Statement Project under exploration phase Exploration Recoverable accounts Provision for allowance for recoverable Expenditures under production sharing accounts under production sharing Project under developm
Slide 40: Accounting on Concession Agreements (JGAAP)
Accounting on Concession Agreements (JGAAP) Cash Out Assets on Balance Sheet Income Statement All exploration costs are expensed as incurred Exploration Expenditures Exploration expenses Cost of sales Development Expenditures Tangible Fixed Assets (Depreciation and amortization) Production Costs All
Slide 41: Accounting based on IFRS
Accounting based on IFRS Cash Out Assets on Balance Sheet Income Statement Other Exploration Costs E&E Well drilling costs etc Dry hole Exploration Expenditures Exploration expenses Oil & Gas assets Commercialized Development Expenditures Cost of sales Oil & Gas assets Acquisition Costs (Depreciatio
Slide 42: Ichthys LNG Project Structure Overview
Ichthys LNG Project Structure Overview INPEX Holdings Australia Pty Ltd (Holding company) 100% owned Subsidiary 100% owned Subsidiary 66.245% owned Equity-method affiliate INPEX Operations Australia Pty Ltd INPEX Ichthys Pty Ltd Ichthys LNG Pty Ltd (Operating company) (Upstream entity) (Downstream e
Slide 43: Ichthys LNG Project Accounting Process Overview
Ichthys LNG Project Accounting Process Overview Ichthys Upstream Permit Holding Assets on Consolidated Consolidated Income entity (UJV) Balance Sheet Statement Sales Revenue Net Sales All production costs are Production Costs expensed as incurred Cost of sales (Operating Expenses) (Operating expense
Slide 44: Summary of Australian Taxation
Summary of Australian Taxation Sales ⇒(Oil & Gas sales price)×(Sales volume) …………..(1) Operating expense ⇒OPEX incurred in relevant year (+Exploration cost)+CAPEX tax depreciation …………..(2) PRRT (Petroleum Resource Rent Tax) = (Upstream Revenue - Upstream CAPEX & OPEX - Exploration Cost - Abandonmen