INPEX Busin
ness Strategy and d Two LNG Project
T
LNG P j ts ‐
t Ichthys and Abadi
I hth
d Ab di
INPEX COR
RPORATION
July 3, 2009
Ageenda
„ Mid‐to‐long Term B
Business Strategies
„ Gas Market
„ Ichthys LNG Projec
Ichthys LNG Projecct
„ Abadi LNG Project
Ab d
t
1
Cautionary
y Statement
y Statement
This presentation includes forward‐looking
This
presentation includes forward looking
g information that reflects the plan and
g 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 available to it, and involves know
tl
il bl t it
di
l
k wn and unknown risk, uncertainties, and d k
i k
t i ti
d
other factors. Such risks, uncertainties and other factors may cause the Company’s performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward‐looking information. Such
h risks, uncertainties and other factors include, without limitation:
include, without limitation:
„ Price volatility and change in demand in crude oil and natural gas
„ Foreign exchange rate volatility
„ Change in costs and other expenses perrtaining to the exploration, development and production The Company undertakes no obligation to publicly update or revise the disclosure The Company undertakes no obligation to publicly update or revise the disclosure
of information in this presentation (includiing forward‐looking information) after the date of this presentation.
2
Mid‐to‐long Term B
i o o g e
Business Strategies
u i e
a egie
Katsujirro Kida Director Executiv
Director, Executiv
ve Vice President
ve Vice President
Awareness of The Bu
Awareness of The Bu
usiness Environment
usiness Environment
„ Recent international financial crisis an
nd a decrease in energy demand
gy
„ Risks of rapidly and drastically fluctu
uating oil and gas prices
„ Increasing priority of natural gas in reesponse to environmental issues „ Increasingly intense competition for r
I
i l i t
titi f resources, mainly, among the major i l
th
j
international oil and gas companies aand the state enterprises in China and India „ Rising technical and economic hurdlees as project sites shift towards frontier areas „ To replace reserves is necessary, but d
difficult to implement
„ Escalated exploration and production
Escalated exploration and production
n costs and increased risks of production
n costs and increased risks of production schedule delay „ The international business environ
nment surrounding the upstream industry has been increasingly sev
vere and uncertain
„ Stable demand for natural gas/LN
Stable demand for natural gas/LN
NG in the long term
NG in the long term
4
Our Strength
Our St
„ Strong reserve/resource ba
ase
„ Large‐scale LNG projects a
as an operator
„ Gas supply chain
„ Strong financial position
Strong financial position
„ Financial scheme by gover
Financial scheme by governmental financial nmental financial
institutions in Japan
5
Strong Reserve//Resource Base
Strong Reserve/
/Resource Base
3,348
Reserve Life**
（RP Ratio）
5,000
4,774
4,500
Gas
1,823
（44%）
4,000
3,500
3,176
MMBOE
3,000
Possible Reserves
+
Contingent Resources
3,176
32.3
years
2,500
2,000
1 598
1,598
1,500
484
484
484
1,000
1 114
1,114
500
10.8
years
1 114
1,114
Liquids
2,651
（56%）
1 114
1,114
0
Proved
Developed
Reserves
*
6
**
Proved
Undeveloped
Reserves
Proved
Reserves
Probable
Reserves
Proved +
Probable
Reserves
Proved reserve volumes are based on the reserves report (preliminary) by DeGolyeer and MacNaughton applying SEC regulations. Probable reserve volumes are based on the reserves report (preliminary) by DeGolyer and MacNaughton applying SPE/WPC/A
AAPG/SPEE guideline (SPE‐PRMS) approved in March 2007. The volumes are the sum of proved reserves and probable reserves by SPE‐PRMS after deduction of proved reserves by SEC regulations. Volumes attributable to the equity method affiliates are included.
Reserve Life = Proved (+Probable) Reserves as of March 31, 2009 / Production for thee year ended March 31, 2009 (RP Ratio: Reserve Production Ratio)
Mid‐to‐Long Term Objectiives for Corporate Growth and Fundamen
dF d
ntal Strategies
t l St t i
Mid‐to‐Long Term Objectiv
g
j
ves for Corporate Growth
p
„ Raise the daily production level up
p to 800,000 to 1 million barrels (crude oil equivalent) by 2020, and establish a
a firm position as a global independent upstream company with global com
upstream company with global com
mpetitiveness
„ Maintain RRR to be over 100% in m
mid‐to‐long term
„ E
Establish a gas supply chain with t
bli h
l h i
i h the upstream business of oil and natural h
b i
f il d
l
gas remaining as our core businesss, as well as evolve into a company with other fortes besides oil and naturall gas, supplying diversified energies
g
pp y g
g
„ Maintain financial health, empoweer corporate vitality, and increase corporate value
Fundamentaal Strategies
7
„
Sustainable expansion of our upst
p
p tream business
„
Establishment of a gas supply cha
ain and proactive expansion of the gas business
„
Evolvement into a company that o
offers diversified forms of energy
Net Production* V
Net Production
V
Volume
Volume Projection
Projection
„ Frade Oil Field
Long term production target
+4 Thousand BOED (Started in Jun. 2009)
(800‐1 000 thousand BOED)
(800‐1,000 thousand BOED)
„ Tangguh LNG
h
G
+6 Thousand BOED (Started LNG producction in Jun. 2009 and expected to ship 1st cargo soon)
„ Van Gogh Oil Field
+4 Thousand BOED (Expected to start in O
Oct.‐Dec. 2009)
New Projects
1000
900
800
(Thousa
and BOED)
700
Year ended March 31, 2009‐2011 CAGR: 6.9%
600
500
462
405
424
454
452
454
5%
„ Kashagan Oil Field
(Expected to start in 2012)
400
4%
300
36%
200
6%
11%
„ Abadi LNG Project
100
46%
35%
(Expected to start in 2016)
0
43%
„ Ichthys LNG Project
Existing Projects
(Expected to start in 2015)
(Expected to start in 2015)
8%
Mar. '09
6%
Mar. '10(E)
Japan
Mar. '11(E)
Mar. '12(E)
Asia/Oceania
Mar. '13(E)
Eurasia
2020
Mar. '14(E)
Miiddle East/Africa
Americas
Note: Assuming oil prices (Brent) of $52.5 in the year ending March 31, 2010 and $660 in the March 31, 2011 or later in the light of the recent market conditions. 8 * The production volume of crude oil and natural gas under the production sharing ccontracts entered into by INPEX Group corresponds to the net economic take of our group.
Gas M
a Market
a e
Katsujirro Kida Director Executiv
Director, Executiv
ve Vice President
ve Vice President
World Natural Gas Demand Projection
World Natural Gas Demand Projection
Projection
TCF
180
World Naturral Gas Demand Growth CAGR（2006～2030）: 1.59%
Asia/Oceaniia Natural Gas Demand CAGR（2006～2030）: 3.17%
160
140
120
100
80
60
40
20
0
1990
2005
2006
Asia/Oceania Europe （w/o Russia）
2010
North America
2015
Middlee East
2020
Russia
Latin America
2025
2030
Africa
Source: EIA International Energy Outlook 2009
10
LNG Demand Prrojection in Asia
LNG Demand Pr
rojection in Asia
mtpa
200
Sup
pply & Demand Gap
(apprrox. 75mtpa in 2020)
180
160
140
120
100
80
60
40
20
0
2007
11
Japan Demand
Korea Demand
Taiwan Demand
China Demand
India Demand
D
Others Demand
Contractual Supply
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Wood Mackenzie
Asia Pacific New & Expa
Asia Pacific New & Expa
anded LNG Projects
anded LNG Projects
Startup from mid-2010s onward
Area
< Australia >
Project
Capacity (mtpa)
(
)
Australia-Pacific LNG
Gorgon
GLNG
Gladstone LNG
Ichthys
Pluto Expansion
QC LNG
7.0
15.0
3.5
15
1.5
8.4
4.8
74
7.4
< Other Asia Pacific Area>
Abadi
Donggi Senoro LNG
PNG LNG
Sakhalin Expansion
4.5
2.0
63
6.3
4.8
Total
65 2
65.2
Source: Wood Mackenzie
12
LNG M
Market i th Middl East & the Atlantic
in the Middle Ea
t & th Atl ti
New LNG Supply for European & North America
an Market
Shtokman
Kitimat LNG
Skikda Rebuild
Arzew LNG (GL3-Z)
Damietta Exp.
Libya
a Exp.
Qatargas-3
Qatargas-4
Venezuela LNG
Rasgas-3
Bra
ass LNG
NLN
NG VII Plus
Eq
quatorial Guinea LNG 2
A
Angola
LNG
Peru LNG
LNG Market
13
LNG Flow
New & expanded LNG Projects in the Middle East & the Atlantic
LNG Supply & Demand in Japan
LNG Supply & D
Demand
D
in Japan
mtpa
90
Supply & Demand Gap
(approxx. 25mtpa in 2020)
80
70
60
50
40
30
20
Contracted Supply (assumption)
10
LNG Demand
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Wood Mackenzie
14
LNG Pricee Formula
LNG Price
e Formula
„ Asian LNG Prices are generally li
g
y inked to JCC (Japan Crude Cocktail)
( p
)
„ Indonesian LNG Prices are linked
d to ICP (Indonesian Crude Price)
„ There
There is a time lag between the m
is a time lag between the m
movement of crude oil and LNG
movement of crude oil and LNG prices: LNG prices are normally llinked to JCC a few months before the date of LNG sale.
LNG Price
LNG Price
Crude Oil Paritty
Crude Oil Price
ＬＮＧ Pric
ce Formula
P（LNG Price） = A（Slope）×IIndex（ex. JCC） + B（constant）
15
Gas Ma
Gas Ma
arketing
„ Japanese Electric and City Ga
El
d C G s Companies are favorable C
f
bl
buyers because of their longsttanding track records as LNG users and stable financial statu
d t bl fi
i l t tus. In addition, supply to I dditi
l t
Japanese domestic gas markett by utilizing our gas infrastructures consisting of Naoetsu LNG Receiving infrastructures consisting of N
Naoetsu
N
LNG Receiving
Terminal and pipeline networrks and other Asian markets are also taken into consideration
also taken into consideration.
„ Long‐term LNG SPAs still hav
ve been predominant in Asia‐
Pacific LNG Market.
f
k
„ IINPEX leads the marketing ac
E ea
e a e i g activities for its operator LNG i i ie o i ope a o
projects. Generally LNG is maarketed to buyers jointly by project partners, unlike equity
p
j
p
q y
y lifting in oil sales.
g
16
I
Ichthys LN
y NG Project
oje
Seiya Ito
Director Managiing Executive Officer
Director, Managi
ing Executive Officer
Senior General Manageer, Ichthys Project Division
Ichthys Projeect Location
Ichthys Proje
ect Location
Abadi
WA‐285‐P
Ichthys Field
WA 285 P Ichthys Field WA‐285‐P
Ichthys Field
and Adjacent Area
18
Extent of Icchthys Field
Extent of Ic
chthys Field
Long side: approx. 40km
Short side: approx. 15km+
Area: approx. 600km2
Omiya
M
Minamikoshigaya
Kashiwa
M t d
Matsudo
Fussa
Ichikawa
Ikebukuro
Mitaka
T
Tachikawa
hik
Nakano
Hachioji
Ueno
S
Shinjuku
Tokyo
Tsudanuma
Shibuya
Noborito
Chiba
Machida
Kawasaki
Yokohama
k h
0 10km
19
Brief Summa
Brief Summa
ary of Permit
ary of Permit
„ Permit Holders:
Permit Holders:
INPEX Brow
INPEX
Brow
wse Ltd
wse, Ltd.
(76%)
TOTAL E&P Australia (24%)
y
y
((Currently in
y n 1st Extension Sep.6, 2004 ‐
p
Sep.5, 2009)
p
)
„ Term: 6 years + 5 years
* Primary Term was 6 years from 19988. Plan is to apply for 2nd Extension for 5 years.
„ Location Block: 11 graticular blockss May 25, 2004 – May 24, 2008
(Retention Lease ap
(Retention Lease ap
pplication is currently under
pplication is currently under government evaluaation.)
„ Permit Area: 3,041km2(5,049km2 att commencement in 1998)
„ Minimum Work Obligations:
1st Extension Period
Extension Period
Primary Term
Primary Term
Year
Minimum Work O
Obligations
Year
Minimum Work Obligations
1
4500km 2D Seismic/G
G&G 1
G&G
2
2 wells/G&G
2
G&G 3
1 well/G&G
3
250km2 3D Seismic/G&G
2
4
Seismic/G&G 1 well/1,200ｋｍ 3D S
4
G&G
5
1 well/G&G
5
1 Well/G&G
6
G&G
G&G: Geological and Geophysical Studies 20
Exploratio
on History
on History
1998
Mar.: WA‐285‐P offered in the Australian Government’s 1997 Offshore Exploration acreage gazette.
WA‐285‐P (Share 100%).
Aug.: Obtained Exploration Permit for the W
Dec.: Acquired 2D seismic with line length approx. 4,700km.
Mar. 2000 – Feb. 2001
1st Drilling Campaign of 3 wells (Dinichthys‐
Drilling Campaign of 3 wells (Dinichthys‐‐1, Gorgonichthys‐1, Titanichthys‐1) ‐1 Gorgonichthys‐1 Titanichthys‐1)
encountered gas and condensate pools in eacch well. May‐Oct. 2001:
Th
The structure was named ‘ICHTHYS GAS A
d ‘ICHTHYS GAS AND CONDENSATE FIELD’ after the 3D Seismic AND
A
CONDENSATE FIELD’ f
h 3D S i i
data acquisition / processing / interpretation
n.
Jun. 2003 ‐ Feb. 2004:
2nd Drilling Campaign, 3 wells (Ichthys‐1A, Ichthys Deep‐1, Ichthys‐2A/ST1) confirmed areal extension of the reservoir and its hydro
ocarbon pool. Apr.2007 ‐ Jun. 2008:
Apr.2007 Jun. 2008:
Drilled Dinichthys North‐1、Ichthys West‐1 aand examined further areal extension of the Ichthys Gas and Condensate pool.
Note: Current reserve volume of Ichthys Fielld is estimated to be 12.8TCF Gas and 527 MM Note: Current reserve volume of Ichthys
ld is estimated to be 12 8TCF Gas and 527 MM
barrels of Condensate
21
Outline for Devellopment Concept
Outline for Devel
lopment 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 Subsea Production Wells:
30 wells at Brewster, 20 wellls at Plover
at Brewster 20 wellls at Plover
4
Reservoir Depth: approx. 3,900m ‐ 4,600m
Subsea Production Facilities: Flow L
Subsea Production Facilities: Flow L
Line, Flexible Riser
Line, Flexible Riser
Offshore Production Facilities: CPF
F (Semi‐submersible Type) + FPSO (Condensate Storage and shipping))
Gas Export Pipeline: 42 inch
Design Life: 40 years
At Darwin Onshore Facilities produce, storage, and ship LPG and LNG
At Darwin Onshore Facilities, prod
uce storage and ship LPG and LNG
Storage Tank capacity:
LNG Tank
:2 x 175,000m
:2 x 175,000m
m3(approx. 160,000 ton)
(approx. 160,000 ton)
– LNG Tank
– C3 Tank
:1 x 90,000m3 (approx. 40,000 ton)
– C4 Tank
:1 x 90,000m3 (approx. 50,000 ton)
– Condensate Tank :2 x 60,000m3 (approx. 760,000 barrel)
22
Overall Develo
Overall Develo
opment Image
opment Image
Condensa
ate
85,000 bpd
d (peak)
CPF
FPSO
LNG 8.4 million ton/year
LPG 1.6 million ton/year
y
Condensate 15,000 bpd
15,000 bd (peak)
Flexible
Risers
L
Future Plover
Future
Plover
Subsea Wells
23
Brewster
Subsea Wells
N
G
Gas Export Pipeline
Gas
Export Pipeline
Darwin Onshore Plant
O h
l
42” x approx. 885km
Inage
Offshore Faccility Layout
Offshore Fac
cility Layout
CPF
OFFTAKE
TANKER
FPSO
SUBSEA CONDENS
SUBSEA
CONDENS
SATE
TRANSFER LIN
NE
Image
24
Subsea Well and Infield Flowline
Subsea Well and
Infield Flowline
CPF
FPSO
Drill Cen
nter
Flow Line
Development Well
25
Water Depth: approx. 250m
Image
CPF/F
FPSO
Flare Stack
Flexible Riser
Image
• 100m x 1
100m x 100m. One of the biggest size in the world (similar size 100m
1
One of the biggest size in the world (similar size
to GOM Thunder Horse)
• Living Q
Quarter (150 personnel capacity) will be installed in South sid
de
• Flexible Riser will be installed in North side.
• 3500mx58m
• Liq
quid from CPF will be transferred through Turret
• Sto
orage Capacity : 1.2 million barrel
• Gaas will be backed to CPF upon re‐pressurized
• Liv
ving Quarter (150 capacity) will be installed
ving Quarter (150 capacity) will be installed
Turret
Image
26
Gas Exporrt Pipeline
Gas Expor
rt Pipeline
„ Specification
–
–
–
–
–
–
Size and Thickness
Si
d Thi k
Length
Allowable Pressure
Material
Total Weight
Wate Depth at Routee
Water Depth at Route
: 42”x33.5 mm
42” 33 5
: approx. 885 km
: 200 Bara
: X65
: approx. 800,000 ton
: approx. 250m ‐
app o 250
0
0m
Image
27
LNG Plant Siite Location I
LNG Plant Si
ite Location I
„
Decided Onshore LNG Plant Site at D
Darwin
–
–
Announcement was issued at Darwin dat
Announcement
was issued at Darwin datte of 26
te of 26th Sep. 2008
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
LNG Plant Si
te Location II
D
Darwin Airport
Darwin
East Arm Port
East Arm Port
Darwin LNG
Channel Island
Power Station
Plant Site
Blaydin Point
5km
29
LNG Plan
LNG Plan
nt Layout
nt Layout
Image
30
Module Offloading Facility
Module Offlo
ading Facility
Image
31
GHG (Greenhouse Gas) Management I
GHG (Greenhouse G
Gas)
G
Management I
„ Situation
Situation in Australia
in Australia
‐ Carbon Capture and Storage (CC
CS) Law (Offshore Petroleum Amendment (Greenhouse Gas Storage)) became effective in Nov. 2008
Amendment (Greenhouse Gas S
Storage))
S
became effective in Nov. 2008
‐ CCS acreages released in Mar. 2009
heme (CPRS: emissions trading scheme) (
g
)
‐ Carbon Pollution Reduction Sch
bill passed House of Representaatives on Jun. 4, 2009 and sent to Senate.
‐ CPRS bill to be voted in Senate iin Aug. 2009
‐ Government expects CPRS to co
ommence in Jul. 2011
„ INPEX Efforts
‐ Reduce GHG emissions from On
nshore Liquefaction Plant
‐ Study measures to offset GHG eemissions • Biosequestration, Geosequestration, Australian Emissions Units A
E
U
(emission permits) etc.
32
GHG (Greenhouse Gas) Management II
GHG (Greenhouse G
Gas)
G
Management II
„ Total emission of GHG : 280MMt///40years, 7MMt/year
y
,
/y
„ Below shows CO2 emission in kg per 1MWh electric generation
33
* H
Historical Aus LNG : NWS, Darwin LNG
Contribution to Local Community
Contribution to L
Local
L
Community
Fred’s Pass Rural Show (May 2009)
y
Djarindjin Signing Ceremony (April 2009) 34
Developmen
nt Schedule
nt Schedule
Application of A
l
f
Environmental Approval
Government Approval
Submission of additional information
Public Comments
Public Comments
Application of Production Licence
FID
To obtain Environm
To obtain Environm
ment Approval
ment Approval
To obtain Productiion Licence
FEED
Onshore & Onshore
&
Offshore Facilities
Gas Marketing
D
Detailed Engineering
EPC D i i
Decision
Procurement
Construction
LNG purchase commitmeent from buyers
2010
35
First LNG
2015
Project Organ
Project Organ
nization Chart
nization Chart
24%
TOTAL E&P Australia
TOTAL E&P Australia
WA‐285‐P
Joint Venture
76%
INPEX Brow
wse, Ltd.
(Operato
or)
Perth
Tokyo Head Office
Ichthys Project Committee
Managing Director
H d fP j t
Head of Project
Deputy Head of Project
Offshore
Coordination
Onshore Coordination
Project Coordination
Corporate
Coordination
Onshore Facility
QHSE
External Affairs
& JV
Subsurface
Civil
Environment
HR
Drilling & Completion
Yokohama
Office
GHG
Fi
Finance & &
Administration
Project Services
Commercial
& Legal
Contracts &
Procurement
IT
Logistics
Darwin
Office
E l ti
Exploration
Offshore Facility
London / Oslo
Office
O
Operations
ti
36
A a i NG Project
Abadi LN
oje
Shunich
hiro Sugaya
Director Managin
Director, Managin
ng Executive Officer
ng Executive Officer
Senior General Manageer, Masela Project Division
Masela PSC Block
Masela P
PSC
P Block
Banda
Banda
Sea
0
Kai
Islands
Seaa
200km
Tanimbar
Islands
Saumlaki
Masela Is
Indonesia
Massela PSC Block
Dili
East Timor
Abadi
Timor
Barossa
Caldita
C
ldit
E
Evans
Shoal South
Evaans Shoal
Sunrise
Kupang
Laminaria
Corallina
Buffalo
Elang-Kakatua
Timor Sea
BayuｰUndan
Jabiru
Challis
Cassini
Skua
Aru
Islands
Talbot
Petrel
Crux
Australia
Darwin
Tern
Cornea
Ichthys
WA 285P
Blacktip
38
Exploration
n Milestones
n Milestones
Nov. 16, 1998
Feb. – Mar. 1999
Oct. – Dec. 2000
Jul. – Sep. 2001
Mar. – Oct. 2002
2003 – 2007
May 2007 – Jul. 2008 Sep 2007 – Nov. 2008
Sep. 2007 Nov 2008
PSC signed
SC
d
2D seismic survey (2,9948km) by Marine Vessel Geco Rho
Drilling of Abadi‐1 by
y rig Energy Searcher
3D seismic survey (2,0060km2) by Marine Vessel PGS Ramform Challenger
1st appraisal drilling b
pp
g by rig Energy Searcher (2 wells)
y g
gy
(
)
Subsurface studies and
d development concept selection studies
2nd appraisal drilling by rig Ocean General (4 wells)
Pre‐FEED
Pre
FEED of Floating of Floating LNG
M/V Geco Rho
M/V PGS Ramform Challenger
Energy Searcher
39
Ocean General
Abadi Gaas Field I
Abadi Ga
as Field I
„ Abadi Gas/Condensate Field
d
North
- Water Depth:
Water Depth: 400 400 ‐ 800m
m
4 5
West
- Reservoir Depth: 3,700 ‐‐ 3,900m
6 2 7
SW
- Areal closure: more than
Areal closure: more than
n 1 000km2
n 1,000km
3
1
South
„ Discovered gas and condenssate in Abadi‐1 exploration well in 2000
„ Drilled 6 additional appraisaal wells, and confirmed the extension of gas and conden
g
nsate in the Abadi structure
„ The gas reservoir pressures are plotted on the same line in the pressure vs depth plot w
p
p p which demonstrate the communication of the pressu
ure between wells
40
Abadi Gaas Field II
Abadi Ga
as Field II
Omiya
Minamikoshigaya
Kashiwa
North
Matsudo
Fussa
Ikebukuro
Mitaka
Tachikawa
Hachioji
Ichikawa
Ueno
Nakano
Tsudanuma
Shinjuku
West
Shibuya
Tokyo
South
Noborito
Chiba
South
West
Machida
Kaw
wasaki
Yokohama
0
41
10km
Production Sha
Production Sha
aring Contract
aring Contract
„
„
„
„
Contractor: Effective Date: Contract Period:
Exploration Period:
INPEX Masella, Ltd. (100%)
Nov. 16, 19988
30 years
oceed to Development and Production 10 years (pro
Period in case of commercial discovery)
„ Contract Area : 3,221.3km2 (aalready had done twice partial relinquishmeent from 5,725km
ent from 5 725km2)
„ Indonesian Participation:
Obligation to
Obligation to
o propose the transfer of 10% interest to
o propose the transfer of 10% interest to Indonesian co
ompany, which Indonesian Government designates after the discovery of commercial o
oil and gas field
42
Plan of Dev
Plan of Dev
velopment
„ In Sep. 2008, INPEX submitted the POD of the A
Abadi gas field, and BPMigas approved it in principle
gas field, and BPMigas approved it
in principlee.
e. „ Approved Development Concept
‐ Floating LNG
‐ Initial development focusing on the North block
‐ The LNG production of 4.5MTPA for moree than 30 years
y
‐ Condensate production of 13,000 bpd
‐ Subsea production System
„ Advantages of the FLNG development Option
FLNG 3D Imaga Hull Size: 500m length × 82m width
‐ Minimum Environmental Impact
‐ Reduction
Reduction in CAPEX, OPEX and abandonm
in CAPEX OPEX and abandonm
ment
ment work & cost
‐ Possibility to reduce project lead time
„ Schedule
‐ Currently, working on the preparation for FEED
‐ Production start‐up expected in 2016
43
SUBSEA Image
Floatin
ng LNG
ng LNG
Development Facilities
p
:
Development Scheme
Development Well
:
Floating LNG
:
Subsea Production System + Floating LNG
y
g
18 production wellls (Directional Wells from 5 Drilling Center)
Loading LNG Plan
nt, LNG Storage Tank, and Loading facility on conventional FPSO
ti
l FPSO
O
Flare Stack
Accommodation
Utility
Process
Stern
Swivel
Bow
LNG Loading
Arm
Turret
Tank
44
FLNG Layout
FLNG L
L
Living
Quarter
Utility
Area
Process
Area
Flare
St k
Stack
Turret
Stern
500m
Bow
82m
45
Condensate
Offloading
Hose Reel
LNG Loading
g Arm
Developmen
nt Schedule
nt Schedule
Final Investment Decisio
on（FID）
First LNG
Public Announcement
Local hearing
Environmental & Environmental
& Environmental Environmental
Social Impact Permit
Assessment
Government Go
ernment
Approval
Detailed Engineering
l dE
FEED
Procurement
EPC Decision
Floating LNG
oa i g NG
Subsea Production System
Construction
LNG purchase commitmeent from buyers
Gas Marketing
g
2016
2011
46
Organization of Projject Implementation
Organization of Proj
ject Implementation
Old Organization (Jun. 2009)
(Jun.
2009)
ADM
FIN
GM
G&O
EXPL
PE
New Organization
((FEED phase)
p
)
OPE
Total Manpower
Total
Manpower (as of Jun. 2009)
(as of Jun 2009)
Expat:
27 (16)
National: 64 (36)
Figure in parenthesis is current manpower
* Figure in parenthesis is current manpower
President
Director
Indonesia
Assets
Director
GA&HR
Legal &
Insurance
Finance
G&O
Masela
Asset
Director
PE
Supporting function & Non Operator Project
47
EXPL
HSE
Project
Service
Masela Project
Subsurface
Drilling
Facility
Engineering
Pre-Pro
O&M
Strategic
Planning
Appe
endix
i
Cost Calculattion Accuracy
Cost Calculat
tion Accuracy
From FEED Phase to Development Phase
Phase/Class and Cost Calculation Accuracy
Estimate Accuracy vs Phase/Class
90/10
Concept Select
CS
Class 1
Assess
(S
(Screening)
i )
Final Investment
Final Investment
Decision
EED Decision
FE
FID
FEED
FEED Engineering
Accuracy
+40%
Class 2
Select
(Study)
Accuraccy
+30%
Class 3
Develop
(Budget)
A
Accuracy
+15%
Detailed Engineering
Class 4
Execute
(Control)
Accuracy
+10%
Allowance &
Contingency
Accuracy
‐10%
10%
50/50
Allowance &
Contingency
Accuracy
‐40%
Allowance &
Contingency
25%
Accuraccy
‐30%
Allowance &
Contingency
A
Accuracy
‐15%
30%
10/90
49
Base
Base Estimate
Base Estimate
Base Estimate
Base Estimate
Price Trends of Mateerials & Machineries
Price Trends of Mate
erials & Machineries
„ Monitoring price trends of materials
d f
ls, machineries, labor wages and h
l b
d
various services based on the analyssis of various cost data.
„ Development budget which reflects D
l
t b d t hi h fl t the characteristics of the Project th h
t i ti
f th P j t
(statutory requirements, environmen
ntal requirements, etc.) will be calculated based on the optimization
n of the plant specification in line with the o e of ba i de i (FEED) , and, efficient tendering process of the progress of basic design (FEED) a d effi ie t te de i
o e of
machineries, materials and services u
utilizing the contract strategy which matches the fixed specification.
„ The international prices for engineerring, materials, machineries, labor, steel, logistics, pipeline construction
n vessels, rigs and so on, are showing a declining trend since 3Q of last year up to now. Nonferrous metal prices declining trend since 3Q of last year up to now Nonferrous metal prices
declined by the end of last year but aare currently showing a tendency to rise from the beginning of this year.
„ According to CERA’s statistics, the u
upstream development costs in the Asia‐Pacific region for 1Q of 2009 haas reduced 11% compared with half a year ago.
year ago.
50
Price Trends of Materiaals & Machineries, Rigs
, g
<Prices for Materials & Machineries, Labor W
Wages> g
((1Q/2009))
„ Engineering, Machineries, Bulk Materialss, Logistics: fallen 4 to 10% compared with 4Q/2008.
„ On the other hand, lack of skilled labor in
,
n Australia is continuing and labor wages g
g
are on a rising trend.
<Steel Prices> (Spot price for 1Q/2009. Approx. 30% of Jappanese steel mill products are dealt in the spot market.)
„ All kinds of steel: fallen 30 to 40% compa
All ki d f t l f ll 30 t 40%
ared with 3Q/2008.
d ith 3Q/2008
„ Hot Rolled Plates required for the Ichthys Pipeline: fallen over 40% from the peak period.
<Nonferrous Metal Prices> (LME forward price for 22Q/2009)
„ Nonferrous metal prices have reached prrice bottom around the end of 2008 and come back to recovery trend to some exteent now. Nickel, Copper, Aluminum are half come back to recovery trend to some exte
ent now. Nickel, Copper, Aluminum are half
of price range of 3Q/2008.
<Rig Rates> (1Q/2009)
„ Rig rates are maintained in a high level p
d
h hl
l position or rising trend . Especially, it is d E
ll
remarkable for floaters in West African sh
hallow waters (0 ‐ 3000ft) and mid/deep water.
„ On the other hand, floater rates for Asia‐P
O th th h d fl t
t f A i Pacific shallow waters (0 ‐
P ifi h ll
t
(0 3000ft) which will 3000ft) hi h ill
be related to Ichthys, are exceptionally po
ositioned in declining trend.
51
Markett Trend
t Trend
M a r k e t Tr
rend
( 2 0 0 6 / 3 Q - 2 0 09
0 /1Q)
Price Ind
dex (2006/3
3Q = 100)
140
135
130
125
120
Engineering
115
110
105
100
95
Materials &
Machineries
Bulk Materials
Logistics Expenses
Labour Rates
2009-1Q
2008-4Q
2008-3Q
2008-2Q
2008-1Q
2007-4Q
2007-3Q
2007-2Q
2007-1Q
2006-4Q
2006-3Q
90
52
Condensatee Marketing
e Marketing
„ Market:
– Condensate production of 1.85 milllion barrels per day and consumption of 1.07 million barrels per day in total Asia (Year 2007)
– Condensate production of 670 thou
usand barrels per day and consumption of 450 th
450 thousand barrels per day in As
db
l
d i Asia except the Middle East (Year 2007)
i
t th Middl E t (Y
2007)
– 200 thousand barrels per day impo
orted to Japan (Year 2008)
– Surplus condensate is mainly expo
orted to U.S.A and Europe.
„ Buyers: Japan, South Korea, China, Taiiwan, Singapore, Thailand, Indonesia etc.
„ Use: Petrochemical material, Refinery m
material
„ Price:
Price: Linked to price of Dated Brent, D
Linked to price of Dated Brent Dubai, and similar crude producing in the Dubai
D
and similar crude producing in the
surrounding area
„ Contract Type: FOB or CFR
Contract Type: FOB or CFR
„ Contract Term: Annual term and Spot
53
LPG Ma
LPG Ma
arketing
„ Market
– U.S. is the largest LPG consumer in
U S i the la e t LPG o u e in the world, while in Asia‐Pacific, China, the o ld hile i A ia Pa ifi Chi 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 ton per year It accounts for approx
ton per year. It accounts for approx
ximately 80% of total consumption in
ximately 80% of total consumption in Japan. (2008)
– Main exporters are countries in thee Middle East, while main importers are countries in the East Asia including
countries in the East Asia including
g Japan. About 30 million ton of LPG is
g Japan. About 30 million ton of LPG is supplied to East Asian countries, w
which corresponds to a half of world sea traded LPG volumes. (2008)
„ Buyers
– LPG wholesalers and some of Electric/City Gas companies are directly i po i g
importing LPG in Japan.
i Japa
„ Price
– Saudi CP (Contract Price) is the ext
Saudi CP (Contract Price) is the exttensively‐used benchmark for world tensively‐used benchmark for world
exported LPG Prices, made availab
ble in the beginning of each month by Saudi Aramco, national oil compan
ny of Saudi Arabia. Argus FEI (Far East Index, the averaged spot price in F
g
p p
Far East) monthly announced by Argus is )
y
y g
becoming another benchmark price for LPG in East‐Asian market.
Source: Poten & Partners
54
Taxation Schem
Taxation Schem
me in Australia
me in Australia
Sales
Cost of Goods Sold
⇒（Oil/Gas sales price）×（Salles volume）
⇒OPEX incurred in relevant years（+Exploration cost）+CAPEX depreciation
・・・・・・・・・・・①
・・・・・・・・・・②
・Depreciation ⇒ Straight‐line Meth
hod (effective life: 15 years for Production Facilities; 20 years for Pipelines)
The majority of the expenditu
The majority of the expenditu
ure constitute PRRT（Petroleum Resource Rent Tax) payments
ure constitute PRRT（Petroleum Resource Rent Tax) payments Selling, General and
Administrative Expenses
A
i is a i e E pe ses
Corporate Tax
(In Australia)
55
PRRT=（Upstream Revenue－Upsttream Capex & Opex－ Expl. Cost－Abandonment Cost－ undeducted carried forward PRRT expenditure
e)×40%
・・・・・・・・・・・・・・③
・PRRT deductions are made in
n the following order: Upstream Capex, Opex, Expl. Cost, Ab d
Abandonment Cost.
tC t
Note: Exploration cost is subjecct to mandatory transfer between Projects/members of same group of entities.
・Upstream Revenue = Revenu
p
ue from Oil and Gas sales or GTP×Sales volume
※GTP (Gas Transfer Price) →Aveerage of “Cost Plus Price” and “Net Back Price”
※Cost Plus Price → identify valu
ue based on Upstream costs
※Net Back Price → identify valuee based on LNG FOB sales price less Downstream costs
・Undeducted
Undeducted PRRT Expenditure: PRRT Expenditure: non‐utilised PRRT deductible expenditure can be carried forward to the non‐utilised PRRT deductible expenditure can be carried forward to the
following year(s), which is subject to augmentation at the rates set out below;
Development cost: LTBR+5%; Exp
pl. Cost: LTBR+15%; Abandonment cost: LTBR *GDP Factor applies to all expend
diture incurred more than 5 years before the Production Licence application is made.
app
i a io i
a e
*LTBR = Long Term Bond Rate
ustralia
*GDP Factor = GDP Deflator of Au
＝ （①－②－③－Interest paiid）×30％
Note: Gas Transfer Price
“Gas Transfer Pricing” rules prevent taxpayers from setting arbiitrary upstream gas sales price where both upstream and downstream interests are held by the same entity (or entities).
Ichthys Projject History
Ichthys Proj
ject 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
1RY1
1RY2
1RY3
1RY4
1RY5
2RY1
WA‐285‐P / Ichthys
Permit　Effective Date
(1998/8/19)
Geophysics Activities
Location Blo
ock Approval
2D seismic data
acquisition
1st renewal ,
partial relinquishment
2nd renewal,
partial relinquishment
3D seismic data acquiisition
(multi‐client data:
Dinichthys 1
Dinichthys‐1
Drilling
(Ichthys/WA‐285‐P)
Dinichthys North 1
Dinichthys North‐1
Ichthys 1A
Ichthys‐1A
Ichthys Deep‐1
Gorgonichthys‐1
Ichthys West‐1
Ichthys‐2A/ST2
Titanichthys‐1
Commencement Onshore FEED
Development Engineering
Commencement Offshore FEED
56
Abadi Projeect History
ect History
PSC Sign: Nov. 16, 98
2
25%
Partial Relinquishment
PSC
Area Enlargement (362km2)
25% Partial Relinquishment
Seismic
Geco Rho
PGS Ramform Challenge
er
3D 2
2,060km
060km2
2D 2
2,948km
948km
Site Survey
Drilling
g
Abadi-1
Rig Energy Searcher
57
Site Survey
Abadi-2
Ab
b di 3
badi-3
Abadi-4
Ab di 5
Abadi-5
Abadi-7
Abadi-6
Rig Ocean General
2
Current Status of otheer Companies
Current Status of othe
er Companies’ FLNG
„ FLEX LNG: LNG Producer (LNG
EX
G
G
d
( GP)
G ) (1.7 ‐
(1
1
1.95 MTPA)
A)
– Awarded Samsung a contract to build 4 Hulls
– Complete FEED of Generic Design o p e e EE o e e i e ig LNGP in the Q1 of 2009
i
eQ o
– Reviewing the projects in Nigeria, P
PNG, Trinidad and Tobago, Brazil etc. „ Shell: Generic LNG‐FPSO (3.5 MT
Shell: Generic LNG FPSO (3 5 MT
TPA)
– Reviewing to apply FLNG in Prelud
de Gas Field and Greater Sunrise Gas Fields
„ SBM: SBM’s FLNG (2.5 MTPA)
– Complete FEED of Generic LNG‐FP
PSO in the 2H of 2008
„ Höegh LNG: Höegh LNG FPSO (1.6 MTPA)
– FEED (May, 2008 – March, 2009), reeviewing applicable gas field
58