Inpex to Sell Stake in Masela Block

- Inpex to Sell Stake in Masela Block

Friday, July 22, 2011
Inpex Corp.

Inpex announced that its affiliate Inpex Masela has signed an agreement with Shell Upstream Overseas Services (I) Limited a subsidiary of Royal Dutch Shell plc (Shell), to transfer a 30% participating interest in the Masela Block, the Arafura Sea, Indonesia (Abadi Project). This transaction is subject to approval of the Indonesian Government and satisfaction of certain other conditions.

Inpex Masela is the operator with a 90% participating interest in the Masela Block, which measures 3,221km2 in a water depth ranging from 300m to 1,000m. The Abadi gas field was discovered in 2000, and the subsequent six appraisal wells and the study results confirmed the sufficient gas reserves for LNG development. In December 2010, the plan of development was approved by the Indonesian Government that the Abadi gas field will be developed in phases and a Floating LNG (FLNG) plant will be constructed and utilized for an annual production of 2.5 million tonnes for the first phase development.

Inpex Masela is currently preparing to award Front-End Engineering and Design (FEED) contracts, which is scheduled for the 1st half of 2012.

Based on the technical characteristics of the Abadi Project, which is a large-scale offshore LNG project, Inpex considers it vital to invite a strategic partner among major oil companies, which has sufficient expertise and experiences of LNG business and, in particular, of large scale offshore gas development activities. As a result, Inpex decided to invite Shell as the strategic partner for Abadi Project. Shell is a world leader of LNG projects and has a particular capability in FLNG technology which will be very valuable to the Abadi Project. In particular, Shell has just demonstrated its leadership and delivery in FLNG activities by reaching a final investment decision on the Prelude FLNG project made in May 2011, the first FLNG project globally to reach development level.

While Inpex Masela will continue to be the Operator of the Abadi Project holding a 60% participating interest, it is expected that the participation of Shell with its extensive expertise and experiences in offshore production, gas liquefaction, LNG shipping and, in particular, its FLNG experiences will help ensure the timely delivery of the Abadi project. It will also contributes largely to promote a wider collaborative relationship between Inpex and Shell on the Abadi project and other projects.

Inpex continues to seek support from the Indonesian Government and other stakeholders for a successful commercial production from the Abadi project.

Inpex has a 50% working interest in the Offshore Mahakam Block with the largest gas production in Indonesia. Inpex will be expanding its exploration and development activities in Indonesia as one of the company’s core business areas.

• Participating Interests
  • Inpex Masela (Operator) : 60%
  • Shell Upstream Overseas Services Limited : 30%
  • PT EMP Energi Indonesia(EMPI) : 10%
• Planned Schedule
  • FEED: Planned to start by the 1st half of 2012
  • Abadi Project FLNG

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Inpex Gets AU Govt OK for Ichthys Project

- Inpex Gets AU Govt OK for Ichthys Project

Tuesday, June 28, 2011
Inpex Corp.

The Australian Government's decision to grant environmental approval to the Ichthys Project is a welcome step forward and helps pave the way for a final investment decision in the fourth quarter of 2011.

INPEX President Director Australia Seiya Ito said Federal environmental approval represents a significant milestone for the project following a rigorous three year assessment process, comprehensive environmental studies and extensive engagement with the community and other stakeholders.

"We are committed to developing and operating the Ichthys Project in an environmentally and socially responsible manner and will continue to work closely with the government and community as we progress the project," Mr. Ito said.

The decision today by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke, follows the Northern Territory Government's announcement in May that the environmental impacts of the planned Ichthys development in Darwin can be managed within acceptable limits.

"I would like to acknowledge both the Australian and Northern Territory governments for their thorough environmental assessment process," Mr. Ito said. "The input we received from government and the community during the process resulted in improved outcomes for all stakeholders."

The proposed Ichthys Project includes a subsea production system, semi-submersible central processing facility, a floating production, storage and offtake vessel located at the Ichthys Field in the Browse Basin, approximately 200 kilometers off the northwest coast of Western Australia, and onshore gas processing facilities at Blaydin Point, Darwin, Northern Territory. An 885km subsea gas pipeline will link the offshore and onshore facilities.

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Inpex Briefs Final Investment Decision for Ruby Field

- Inpex Briefs Final Investment Decision for Ruby Field

Tuesday, June 21, 2011
Inpex Corp.

Inpex announced that through its wholly owned subsidiary, INPEX South Makassar, Ltd. the final investment decision was made for the Ruby gas field in the Sebuku Block. Upon this decision, development activities will start towards the commencement of gas production in the field in the second half of 2013.

The Block is located 300km south of the Offshore Mahakam Block, where TOTAL and INPEX are producing oil and gas since 1974. The Block covers 2,345km2 with a water depth ranging from 50m to 200m. With the Ruby gas field having obtained the approval of the plan of development from the Government of Indonesia in July 2008, and following this final investment decision, four development wells are planned to be drilled from an offshore platform. The gas production will flow to and be processed at the onshore production facilities of Offshore Mahakam Block with certain synergy effects expected. The gas production rate is estimated at 100MMscf per day with sales principally to a fertilizer plant located in North Bontang, East Kalimantan. The total capital investment is projected at 500MM US dollars.
Pearl Oil (Sebuku) Limited operates with a 70% participating interest, TOTAL and INPEX each holds a remaining 15% participating interest in the Block.

INPEX has been expanding its exploration and development activities in Indonesia as one of its international core business areas. INPEX is conducting production activity in the Offshore Mahakam Block with the largest gas production in Indonesia. INPEX is also in the process of developing the large scale Abadi LNG project in the Masela Block, the Arafura Sea, for which INPEX is now preparing for the Front End Engineering and Design (FEED) as the Operator. INPEX will further endeavor to explore for and develop oil and gas resources in Indonesia.

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Inpex: Agreement Signed for Vladivostok LNG Joint Study

Inpex: Agreement Signed for Vladivostok LNG Joint Study

Wednesday, April 27, 2011

Inpex Corp.

Inpex announced that the Company Japan Far East Gas Co., Ltd., newly established by INPEX, ITOCHU, Japan Petroleum Exploration Co., Ltd. (hereinafter JAPEX), Marubeni and ITOCHU (hereinafter CIECO), has signed an agreement on the implementation of a joint study for the natural gas utilization project in Vladivostok area with Russia's Gazprom. The Agreement was signed on April 25, 2011 in Moscow, Russia.

The Joint Study consists of a Pre-FEED for the construction of a liquefied natural gas (LNG) plant with production capacity of 10 million tons per year, a preliminary feasibility study on the compressed natural gas (CNG) pilot project and a preliminary study on gas-chemical complex project. The Joint Study is scheduled to be completed by the end of 2011.

The Agency for Natural Resources and Energy of Japan's Ministry of Economy, Trade and Industry, ITOCHU, JAPEX and Gazprom implemented a preliminary feasibility study (Pre-FS) from May 2009 to July 2010. Following the result on the Pre-FS as well as the discussions between the related parties, an agreement was signed between the Agency and Gazprom in January 2011 on the framework and cooperation for the Joint Study. This Agreement was hereby signed on the details of the Joint Study in furtherance of the above-mentioned agreement between the Agency and Gazprom.

On March 19, 2011 at the meeting on the comprehensive development of the fuel and energy industry in Eastern Siberia and the Far East held in Sakhalin Oblast, Prime Minister Putin revealed his intentions to increase LNG supply to Japan and alluded to the construction of a new LNG plant in that area. This Joint Study and realization of its future potential projects are considered to be very important for Russia-Japan relations, as well as for the stable LNG supply to not only Japan but also to the Far East and other Asian countries, and will contribute to the diversification of Russia's gas (LNG) export sources.

Inpex to Open New Overseas Office

Inpex to Open New Overseas Office

Monday, April 25, 2011

Inpex Corp.

Inpex announced that it will open its newest overseas office in Rio de Janeiro, Brazil.

In Brazil, INPEX is participating and operating in the Frade oil field development project, which began production in 2009, and also in the Block BM-C-31 and the Block BM-ES-23 as exploration projects. INPEX will further expand its exploration, development and production activities in Brazil.