Financial results for the six months ended June 30, 2020
Appendix
INPEX CORPORATION
August 7, 2020
Subsidiaries and Affiliates
65 Consolidated Subsidiaries
Major Subsidiaries | Country / Region | Ownership | Phase | Accounting Term |
Japan Oil Development Co., Ltd. | UAE | 100% | Production | December |
JODCO Onshore Limited | UAE | 51 % | Production | December |
JODCO Lower Zakum Limited | UAE | 100% | Production | December |
INPEX Sahul, Ltd. | Timor‐Leste | 100% | Production | December |
INPEX Ichthys Pty Ltd | Australia | 100% | Production | December |
INPEX Southwest Caspian Sea, Ltd. | Azerbaijan | 51% | Production | December |
INPEX North Caspian Sea, Ltd. | Kazakhstan | 51% | Production | December |
INPEX Oil & Gas Australia Pty Ltd | Australia | 100% | Production | December |
INPEX Eagle Ford, LLC | United States | 100% | Production | December |
20 Equity Method Affiliates
Major Affiliates | Country / Region | Ownership | Phase | Accounting Term |
MI Berau B.V. | Indonesia | 44% | Production | December |
Angola Block 14 B.V. | Angola | 49.99% | Production | December |
Ichthys LNG Pty Ltd | Australia | 66.245% | Production | December |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 1 |
Segment Information
- For the six months ended June 30, 2020 (January 1, 2020 to June 30, 2020)
(Millions of yen) | |||||||||
Reportable segments | |||||||||
Japan | Asia & | Eurasia | Middle East | Americas | Total | Adjustments *1 | Consolidated *2 | ||
(Europe & | |||||||||
Oceania | NIS) | & Africa | |||||||
Net sales | 63,147 | 119,527 | 29,541 | 175,029 | 7,943 | 395,190 | (3,507) | 391,683 | |
Segment income | 12,565 | 31,937 | (1,580) | 89,621 | (2,431) | 130,111 | (6,312) | 123,799 | |
(loss) | |||||||||
*1 Adjustments of segment income of ¥(6,312) million are corporate expenses. Corporate expenses are mainly amortization of goodwill that are not allocated to a reportable segment and general administrative expenses.
*2 Segment income is reconciled with operating income on the consolidated statement of income.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 2 |
LPG Sales
(Reference) | 2Q FY2020 | Change | % Change | |
Same Period Last Year | ||||
(Jan ‐ June '20) | ||||
(Jan ‐ June '19) | ||||
Net sales (Billions of yen) | 1.3 | 1.4 | 0.0 | 6.2% |
Sales volume (thousand bbl) | 152 | 160 | 9 | 5.6% |
Average unit price of overseas production | 44.86 | 35.13 | (9.73) | (21.7%) |
($/bbl) | ||||
Average unit price of domestic production | 69.79 | 61.35 | (8.44) | (12.1%) |
(¥/kg) | ||||
Average exchange rate (¥/$) | 110.14 | 108.03 | 2.11yen | 1.9% |
appreciation | appreciation | |||
Sales volume by region | (Reference) | 2Q FY2020 | ||
Same Period Last Year | Change | % Change | ||
(thousand bbl) | (Jan ‐ June '20) | |||
(Jan ‐ June '19) | ||||
Japan | 2 | 1 | (0) | (25.5%) |
(0.2 thousand ton) | (0.1 thousand ton) | (‐0.0 thousand ton) | ||
Asia & Oceania | 150 | 159 | 9 | 6.0% |
Eurasia (Europe & NIS) | ‐ | ‐ | ‐ | ‐ |
Middle East & Africa | ‐ | ‐ | ‐ | ‐ |
Americas | ‐ | ‐ | ‐ | ‐ |
Total | 152 | 160 | 9 | 5.6% |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 3 |
Other Income and Expenses
(Reference) | 2Q FY2020 | |||
Same Period Last Year | Change | % Change | ||
(Jan ‐ June '20) | ||||
(Billions of Yen) | (Jan ‐ June '19) | |||
Other income | 23.2 | 45.3 | 22.1 | 95.2% |
Interest income | 1.7 | 0.5 | (1.2) | (67.1%) |
Dividend income | 6.4 | 5.9 | (0.4) | (7.6%) |
Equity in earnings of affiliates | 9.5 | 30.7 | 21.1 | 222.8% |
Foreign exchange gain | ‐ | 3.7 | 3.7 | ‐ |
Other | 5.5 | 4.4 | (1.0) | (19.4%) |
Other expenses | 21.6 | 19.9 | (1.7) | (8.1%) |
Interest expense | 13.4 | 11.5 | (1.9) | (14.4%) |
Provision for allowance for recoverable accounts | ‐ | 2.2 | 2.2 | ‐ |
under production sharing | ||||
Provision for exploration projects | 0.2 | ‐ | (0.2) | (100.0%) |
Foreign exchange loss | 5.6 | ‐ | (5.6) | (100.0%) |
Other | 2.3 | 6.1 | 3.7 | 158.4% |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 4 | ||||
EBIDAX | |||||
2Q FY2020 | (Reference) | Note | |||
(Millions of yen) | (Jan ‐ June '20) | Apr ‐ Sep '19 | |||
Net income attributable to owners of parent | (120,799) | 69,487 | P/L | ||
Net income (loss) attributable to non‐controlling | (655) | 1,911 | P/L | ||
interests | |||||
Depreciation equivalent amount | 107,120 | 105,770 | |||
Depreciation and amortization | 88,848 | 83,047 | C/F Depreciation under concession agreements and G&A | ||
Amortization of goodwill | 3,380 | 3,380 | C/F | ||
Recovery of recoverable accounts under | 14,892 | 19,343 | C/F Depreciation under PS contracts | ||
production sharing (capital expenditures) | |||||
Exploration cost equivalent amount | 6,925 | 13,551 | |||
Exploration expenses | 4,692 | 11,642 | P/L Exploration expense under concession agreements | ||
Provision for allowance for recoverable | 2,233 | 1,909 | P/L Exploration expense under PS contracts | ||
accounts under production sharing | |||||
Material non‐cash items | 175,982 | 496 | |||
Income taxes‐deferred | (13,147) | (1,156) | P/L | ||
Foreign exchange loss (gain) | (3,320) | 1,652 | C/F | ||
Impairment loss | 192,449 | ‐ | C/F | ||
Net interest expense after tax | 7,877 | 9,070 | P/L After‐tax interest expense minus interest income | ||
EBIDAX | 176,450 | 200,285 | |||
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 5 |
Analysis of Recoverable Accounts under Production Sharing
2Q FY2020 | (Reference) | Note | ||
(Millions of yen) | (Jan ‐ June '20) | Apr ‐ Sep '19 | ||
Balance at beginning of the period | 568,377 | 568,059 | ||
Add: | Exploration costs | 2,248 | 1,950 | Mainly Iraq Block10 |
Development costs | 14,744 | 15,893 | Mainly ACG, Kashagan and Con Son | |
Operating expenses | 7,650 | 9,138 | Mainly ACG and Kashagan | |
Other | 3,997 | 5,396 | ||
Less: | Cost recovery (CAPEX) | 14,892 | 19,343 | Mainly ACG and Kashagan |
Cost recovery (non‐CAPEX) | 8,669 | 7,853 | Mainly ACG and Kashagan | |
Other | ‐ | 2,177 | ||
Balance at end of the period | 573,456 | 571,063 | Mainly Kashagan | |
Less allowance for recoverable accounts under | 69,108 | 69,765 | ||
production sharing at end of the period | ||||
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 6 |
Oil Price and Foreign Exchange Sensitivities
- Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net income attributable to owners of parent for the year ending December 31, 2020*1
(Billions of yen) | |
At the Beginning of the 1Q : +6.5 (‐6.5) | |
Brent Crude Oil Price; | The impact on net income will change in FY2020 as below; |
$1/bbl increase (decrease)*2 | At the beginning of the 2Q : +4.5 (‐4.5) |
At the beginning of the 3Q : +2.5 (‐2.5) | |
At the beginning of the 4Q : +1.0 (‐1.0) | |
Exchange Rate; ¥1 depreciation | +2.2 (‐2.2) |
(appreciation) against the U.S. dollar*3 | |
*1 The sensitivities represent the impact on net income for the year ending December 31, 2020 against a $1 /bbl increase (decrease) in the Brent crude oil price on average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial situation mainly of existing production projects at the beginning of the fiscal year. These are for reference purposes only and the actual impact may change due to fluctuations in production volumes, capital expenditures and cost recoveries, and may not be constant, depending on crude oil prices and exchange rates.
*2 This is a sensitivity on net income determined by fluctuations in the oil price and is subject to the average price of crude oil (Brent). As part of the sales price has been finalized at the beginning of each quarter, the sensitivity breakdown for each quarter is estimated taking into account the percentage of the finalized sales price as follows;
At the beginning of the 1Q : +6.5 billions of yen (1Q : +1.0 billions of yen, 2Q : +1.5 billions of yen, 3Q : +2.0 billions of yen , 4Q : +2.0 billions of yen)
At the beginning of the 2Q : +4.5 billions of yen (1Q : -------- , 2Q : +1.0 billions of yen, 3Q : +1.5 billions of yen , 4Q : +2.0 billions of yen)
At the beginning of the 3Q : +2.5 billions of yen (1Q : -------- , 2Q : -------- , 3Q : +1.0 billions of yen , 4Q : +1.5 billions of yen)
At the beginning of the 4Q : +1.0 billions of yen (1Q : -------- , 2Q : -------- , 3Q : -------- , 4Q : +1.0 billions of yen)
*3 This is a sensitivity on net income determined by fluctuation of the yen against the U.S. dollar and is subject to the average exchange rate. On the other hand, a | |
sensitivity related to valuation for assets and liabilities denominated in the U.S. dollar on net income incurred by foreign exchange differences between the | |
exchange rate at the end of the fiscal year and the end of the previous fiscal year is almost neutralized. | |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 7 |
Sales and Investment Forecasts
for the Year ending December 31, 2020
Forecasts for the year ending | ||||||||||||
Dec 31, 2020 | As of Feb 12, 2020 | As of Aug 6, 2020 | Change | |||||||||
Crude oil (thousand bbl) *1 | 128,712 | 115,196 | (13,516) | |||||||||
Sales | Natural gas (million cf) *2 | 493,815 | 467,000 | (26,815) | ||||||||
Overseas | 410,601 | 390,288 | (20,313) | |||||||||
Volume | ||||||||||||
(2,229 million m3) | (2,055 million m3) | ((174 million m3)) | ||||||||||
Japan | 83,214 | 76,712 | (6,502) | |||||||||
LPG (thousand bbl)*3 | 570 | 296 | (274) | |||||||||
(Billions of yen) | ||||||||||||
Development expenditure*4 | 268.0 | 177.0 | (91.0) | |||||||||
Exploration expenditure | 30.0 | 13.0 | (17.0) | |||||||||
Other capital expenditure | 3.0 | 2.0 | (1.0) | |||||||||
Exploration | Exploration | |||||||||||
Exploration expenses and | expenses 25.5 | 30.1 | expenses 11.2 | 15.1 | (15.0) | |||||||
Provision for explorations*5 | Provision for | Provision for | ||||||||||
explorations 4.5 | explorations 3.8 | |||||||||||
(Non‐controlling interest | 7.9 | 7.2 | (0.7) | |||||||||
portion)*6 | ||||||||||||
*1 | CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl | |||||||||||
*2 | CF for domestic natural gas sales : 1m3=37.32cf | |||||||||||
*3 | CF for domestic LPG sales : 1t=10.5bbl | |||||||||||
*4 | Development expenditure includes investment in Ichthys downstream and acquisition costs | |||||||||||
*5 | "Provision for allowance for recoverable accounts under production sharing" + "Provision for exploration projects", related to exploration activities | |||||||||||
*6 | Capital increase from Non‐controlling interests, etc. |
Copyright © 2020 INPEX CORPORATION. All rights reserved.
Reference
2nd half (Actual Result)
60,894
222,856
183,030
39,826
(1,067 million m3)
160
81.3
5.2
0.3
Exploration expenses 4.6
Provision for 6.9 explorations 2.2
0.3
8
Net Production (January to June 2020)
Oil, Condensate and LPG | Oil and Gas Total | |
353 thousand BOE/day
582 thousand BOE/day
2% | 1% | 12% | ||||||||
9 | 3 | 41 | 3% | |||||||
4% | ||||||||||
56 | 16% | Japan | 19 | 25 | ||||||
244 | Asia/Oceania | |||||||||
Eurasia | ||||||||||
69% | Middle East/Africa | |||||||||
Americas | ||||||||||
244 | ||||||||||
Natural Gas | ||||||||||
2% | 4% | 10% | 1,195 million cf/day | 42% | ||||||
60 | ||||||||||
27 | 53 116 | (229 thousand BOE/day) | ||||||||
11%
Japan | |||
999 | Asia/Oceania | ||
Eurasia | |||
84% | Americas | ||
- The production volume under the production sharing contracts corresponds to the net economic take of the INPEX Group.
Copyright © 2020 INPEX CORPORATION. All rights reserved.
234
40%
Japan
Asia/Oceania
Eurasia
Middle East/Africa
Americas
9
Project Summary
Major Assets in Production & Development
North Caspian Sea Block (Kashagan Oil Field, etc.)
ACG Oil Fields
Abu Dhabi Offshore Oil
Fields
Abu Dhabi Onshore
Sakhalin 1
Tight Oil Project in US (Eagle Ford shale play)
Minami‐Nagaoka
Gas Field
Lucius Field
in the U.S. Gulf of Mexico
Offshore D.R. Congo Block
Concession
Offshore Angola Block 14
WA‐35‐L
(Van Gogh Oil Field)
WA‐35‐L/WA‐55‐L
(Coniston Oil Field)
WA‐43‐L
(Ravensworth Oil Field)
05‐1b/05‐1c | |
Sebuku Block (Ruby Gas Field) | |
Berau Block (Tangguh Unit) | |
Abadi LNG Project | |
TL‐SO‐T 19‐12 | Copa Macoya & |
(Bayu‐Undan Oil & Gas Field) | |
Guarico Oriental Blocks | |
Prelude FLNG Project | |
Ichthys LNG Project |
In Production | Under Development | Preparation for Development |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 11 |
Natural Gas Business in Japan
Naoetsu LNG Terminal | Niigata | |||||||
Shin Oumi Line | Minami Nagaoka | |||||||
Gas Field | ||||||||
Toyama | Gunma | Tochigi | ||||||
Shin Tokyo Line | ||||||||
Toyama Line | ||||||||
Ryomo Line | ||||||||
Tokyo Line | ||||||||
Matsumoto Line | Iruma Line | Saitama | ||||||
Nagano | Yamanashi | |||||||
Kofu Line | Tokyo | |||||||
Shizuoka Line | ||||||||
Second Suruga Trunk Pipeline | Chiba | |||||||
MinamifuziLine | ||||||||
(Shizuoka Gas) | ||||||||
(INPEX, Shizuoka Gas, Tokyo Gas) | ||||||||
Sodeshi LNG Terminal | ||||||||
Shizuoka | ||||||||
0 | 50km | Pipeline | ||||||
Copyright © 2020 INPEX CORPORATION. All rights reserved.
- Production Volume*1
- Natural gas: approx. 3.1 million m3/d (117 million scf/d)
- Crude oil and condensate: approx. 3,000 bbl/d
- Natural Gas Sales*2
- FY 2019/12 (9 months): approx. 1.51 billion m3
- FY 2020/12 first half: approx. 1.07 billion m3
- Distribution outlook: 2.50 billion m3 per year in the first half of the 2020s, 3.00 billion m3 per year in the long‐term
- Global Gas Value Chain
- Started commercial operations at Naoetsu LNG Terminal in December 2013
- Toyama Line completed in June 2016
- First Ichthys LNG cargo arrived at Naoetsu LNG Terminal in October 2018
*1 Average daily production volume for January to June 2020 *2 1m3 =41.8605MJ
12
Sebuku Block (Ruby Gas Field)
INPEX South Makassar, Ltd.
Makassar Strait | ||||
Jawa | West Papua | |||
Sulawesi | ||||
Kalimantan | Sebuku Block | |||
Gas Field | Ruby Gas Field | |||
Block | ||||
0 | 100km | |||
- Participating Interest: 15%
(Operator : PEARLOIL (Mubadala)) - PSC: Until September 21, 2027
- Production Volume*1
- Natural Gas*2: Approximately 91 million cf/
- Milestones
- Farmed‐in in September 2010
- Made FID in June 2011
- Production commenced in October 2013
*1 Average daily production volume for June 2020 on the basis of all fields. *2 Gas volume sold to buyers.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 13 |
Berau Block (Tangguh LNG Project) MI Berau B.V. / MI Berau Japan Ltd.
Kalimantan | West Papua | Province | |
Sulawesi | (Indonesia) | ||
Jawa | |||
Berau Block
Gas Field
Block
0 | 50km | Kaimana | ||
Copyright © 2020 INPEX CORPORATION. All rights reserved.
-
Participating Interest: 7.79% (INPEX Net)
(Tangguh Unit) (Operator: BP) - PSC: Until December 31, 2035
- Production Volume*1
- Condensate: Approximately 6,000 bbl/d
- Natural Gas*2: Approximately 1,146 million cf/d
- LNG Production Volume: 7.6 Mtpa
- Milestones
- LNG sales started in July 2009
- Made FID for an expansion project to add a third LNG train with a 3.8 million t/y production capacity in July 2016, currently under construction
*1 Average daily production volume for June 2020 on the basis of all fields. *2 Gas volume sold to buyers.
14
Blocks 05‐1b and 05‐1c (Sao Vang and Dai Nguyet Gas Field) Teikoku Oil (Con Son) Co., Ltd.
Cambodia
Thailand
Vietnam
- Participating Interest:36.92%
(Operator: Idemitsu Gas Production (Vietnam))
| PSC: Until November 17, 2034 |
| Milestones |
Sao Vang and Dai | |
Malaysia | Nguyet Gas Field |
Gas Field
February 2011: Successful exploration well | |
June 2013: Discovery of gas and condensate | |
| August 2014: Discovery of gas and condensate |
| February 2018: Final Investment Decision |
Block
Blocks 05‐1b & 05‐1c
Development work in progress to commence |
production in late 2020 |
0 10km
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 15 |
TL‐SO‐T 19‐12 Block (Bayu‐Undan Gas and Condensate Field) INPEX Sahul, Ltd.
Oil Field
Gas Field | Indonesia |
Block | Australia |
Pipeline
Australia
Kitan Oil Field
TL‐SO‐T 19‐12Block
TL‐SO‐T 19‐13Block
Bayu‐Undan Gas and
Participating Interest: 11.378120% | |
(Operator: Santos) | |
PSC: Until February 6, 2022 | |
Production volume*1 | |
| Condensate: Approximately 9,000 bbl/d |
| LPG: Approximately 4,000 bbl/d |
| Natural Gas *2 : Approximately 339 million cf/d |
Milestones | |
In February 2004, commenced sales of | |
condensate and LPG | |
In August 2005, entered into an LNG Sales | |
Contract with JERA (former TEPCO) and Tokyo | |
Gas |
Condensate Field
0 50km
Darwin
| In February 2006, commenced LNG shipments |
| In August 2019, in light of the delimitation of the |
maritime boundaries between Australia and |
The map includes provisional maritime boundaries
*1 Average daily production volume for June 2020 on the basis of all fields. *2 Gas volume sold to buyers.
Copyright © 2020 INPEX CORPORATION. All rights reserved.
Timor‐Leste, INPEX entered into a new PSC |
with the government of Timor‐Leste. The project |
will continue to be operated under terms |
equivalent to the previous arrangements. |
16
Van Gogh, Coniston and Ravensworth Oil Fields INPEX Alpha, Ltd.
WA‐55‐L | |||||||||
Block | Coniston Oil Field | Australia | |||||||
WA‐35‐L | |||||||||
Block | |||||||||
WA‐43‐L | Van Gogh Oil Field | ||||||||
Block | |||||||||
Ravensworth Oil Field | Onslow | ||||||||
Oil Field | Exmouth | Australia | |||||||
Gas Field | |||||||||
50km | |||||||||
Block | 0 | ||||||||
Van Gogh Oil Field (WA‐35‐L) and Coniston Oil Field (WA‐35‐L / WA‐55‐L)
Participating Interest: 47.499% (Operator: Santos)
Concession Agreement: Valid until end of production Milestones
In February 2010, oil production commenced at the Van Gogh Oil Field
In May 2015, oil production commenced at the Coniston Oil Fields
In July 2016, oil production commenced at the Novara Structure (Coniston Oil Field)
In January 2019, production commenced from the infill wells at the Van Gogh Oil Field
In March 2020, production temporarily halted for FPSO drydock repairs.
Ravensworth Oil Field (WA‐43‐L)
Participating Interest: 28.5% (Operator: BHP)
Concession Agreement: Valid until end of production
Production volume*: Approximately 3,000bbl/d of crude oil
Milestones
Production commenced in August 2010
* Average daily production volume for June 2020 on the basis of all fields.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 17 |
Prelude FLNG Project
INPEX Oil & Gas Australia Pty Ltd
Easttimor
Prelude Oil Field
Concerto Oil Field | |||||||
Australia | WA‐44‐L Block | ||||||
Gas Field | |||||||
Block | Ichthys | ||||||
0 | 40km | ||||||
Copyright © 2020 INPEX CORPORATION. All rights reserved.
-
Participating Interest: 17.5%
(Operator: Shell) - Concession Agreement: Valid until end of production
- Production Capacity
- LNG*: 3.6 million t/y
- LPG: 0.4 million t/y at peak
- Condensate: Approx. 1.3 million t/y at peak
- Milestones
- Made FID in May 2011
- Wells opened and initial phase of production commenced in December 2018
- 1st Condensate cargo shipped from FLNG in March 2019
- 1st LNG cargo shipped in June 2019
- 1st LPG cargo shipped in July 2019
- LNG sales and purchase agreements in place with JERA (approx. 0.56 MTPA) and Shizuoka Gas (approx. 0.07 MTPA) respectively covering INPEX's equity portion of the project's LNG output (approx. 0.63MTPA)
18
Ichthys LNG Project Overview
Participating Interest : 66.245% (Operator) Production volume*1
Upstream natural gas*2: Approximately 1,316 million cf/d
Upstream condensate: Approximately 53 thousand b/d
Shipped cargoes from production start‐up to June 2020 LNG: 171 (56 from Jan to June 2020)
Onshore condensate (LNG plant): 29 (9 from Jan to June 2020)
Offshore condensate (FPSO): 49 (16 from Jan to June 2020)
LPG: 45 (16 from Jan to June 2020)
Production overview
Project Life: Approximately 40 years
Approximately 8.9 million t/y of LNG(Production Capacity) Approximately 1.65 million t/y of LPG(Production Capacity) Approximately 100,000 bbl/d of condensate (at peak)
Proved reserves
Approximately 1,011 million BOE (based on INPEX's participating interest of 66.245%)
Participating interests in multiple exploration blocks nearby providing future development potential
Marketing
Secured LNG SPAs covering 8.4 million t/y of LNG Approx. 70% of the LNG delivered to Japanese buyers Secured LPG SPA covering INPEX share
*1 Average daily production for June 2020
*2 Gas volume sold to the downstream entity (Gas provided from upstream to the LNG plant as a raw material to make products such as LNG, LPG and plant condensate)
Copyright © 2020 INPEX CORPORATION. All rights reserved.
JERA (former Tokyo | |||
Electric Power | |||
Tokyo Gas | portion) 1.05 mtpa | ||
1.05 mtpa | |||
INPEX 0.90 mtpa | CPC Corporation, | ||
Kansai Electric | Taiwan 1.75 mtpa | ||
0.80 mtpa | |||
Osaka Gas 0.80 mtpa | TOTAL 0.90 | ||
mtpa | |||
JERA (former Chubu | Toho Gas 0.28 mtpa | ||
Electric Power | Kyushu | Electric Power 0.30 mtpa | |
portion) 0.49 mtpa | |||
Project Financing
US$ 20 billion project financing agreements with ECAs and major commercial banks completed in December 2012
- Major EPC contracts
- Upstream
- CPF: Samsung Heavy Industries
- FPSO: Daewoo Shipbuilding & Marine Engineering
- Subsea Production System (SPS): GE Oil & Gas
- Umbilical, Riser and Flowline (URF): McDermott
- Downstream
- Onshore LNG Plant: JGC, Chiyoda and KBR
- Gas Export Pipeline: Saipem, Mitsui Corporation, Sumitomo Corp oration and Metal One Corporation
- Dredging in Darwin Harbour: Van Oord
- Instrumentation & Control System: Yokogawa Electric
19
Ichthys LNG Project Production Facilities
Condensate | LNG, LPG, Condensate | ||
Offtake Tanker | FPSO | Central Processing Facility | Onshore LNG Plant (Darwin) |
Flexible Riser | |||
Upstream Downstream | Gas Export Pipeline | ||
Flowlines |
Subsea Production System
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 20 |
Ichthys LNG Project
Timeline from FID until Commencement of Production
Timeline since Final Investment Decision (FID)
Key Milestone | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||
FID | ● | ||||||||
(Offshore facilities / Production wells) | |||||||||
•Steel cutting ceremony for CPF and FPSO | ● | ||||||||
•Start‐up of CPF and FPSO assembly work | ● | ||||||||
•FPSO hull launch | ● | ||||||||
•Completion of gas export pipelay | ● | ||||||||
•Commencement of drilling of production wells | ● | ||||||||
•Completion of installation of subsea flowlines | ● | ||||||||
•Completion of CPF and FPSO sail away, mooring and hook‐up | ● | ||||||||
•Start‐up of CPF and FPSO commissioning | ● | ||||||||
•Completion of commissioning of all key offshore facilities | ● | ||||||||
(Onshore facilities) | |||||||||
•Groundbreaking ceremony of LNG plant in Darwin | ● | ||||||||
•Commencement of construction on modules, jetties and tanks | ● | ||||||||
•Completion of dredging in Darwin Harbour | ● | ||||||||
•Completion of production loading jetty | ● | ||||||||
•Completion of construction and delivery of LNG plant modules | ● | ||||||||
•Completion of hydrostatic testing on all product tanks | ● | ||||||||
•Start‐up of power generation facilities | ● | ||||||||
•Completion of commissioning of all key onshore facilities | ● | ||||||||
(Overall project) | |||||||||
•Acquisition of production license / project financing agreements | ● | ||||||||
•Arrangement of insurance for facilities during construction period | ● | ||||||||
•Contracts signed for construction, ownership and time charter of LNG tankers | ● | ||||||||
•50% project completion | ● | ||||||||
•LNG production capacity increased from 8.4 to 8.9 million t/y | ● | ||||||||
•Agreement in principle with Astomos Energy Corporation on sales of LPG | ● | ||||||||
•Naming ceremonies for LNG tanker to supply Naoetsu LNG Terminal and CPC Corporation | ● | ||||||||
Commencement of gas production from the wellhead | ● | ||||||||
Commencement of shipment of condensate, LNG and LPG | ● | ||||||||
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 21 |
Ichthys LNG Project
Central Processing Facility (CPF)
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 22 |
Ichthys LNG Project
Floating Production Storage and Offloading (FPSO)
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 23 |
Ichthys LNG Project
Onshore Gas Liquefaction Plant
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 24 |
Abadi LNG Project
Participating Interest: 65% (Operator) | ||||||||||||
| PSC: Until 15 November, 2055 | |||||||||||
(Signed extension in October 2019) | ||||||||||||
| Production Capacity | |||||||||||
| Total output of natural gas 10.5 million tons per | |||||||||||
year (LNG equivalent) including; | ||||||||||||
Tanimbar Islands | ||||||||||||
Saumlaki | • Approximately 9.5 million tons of LNG per year | |||||||||||
• Up to 150 million standard cubic feet of natural gas | ||||||||||||
Easttimor | Masela Block | Indonesia | per day supply via pipeline | |||||||||
Up to approximately 35,000 barrels of | ||||||||||||
condensate per day | ||||||||||||
| Milestones | |||||||||||
Abadi | Gas Field | | Between March and October 2018, conducted | |||||||||
Pre‐FEED works based on an onshore LNG | ||||||||||||
development concept with an annual LNG | ||||||||||||
production capacity of 9.5 million tons. | ||||||||||||
In July 2019, revised development plan based on | ||||||||||||
an onshore LNG development scheme was | ||||||||||||
Australia | approved by the Indonesian authorities. | |||||||||||
Gas Field | Currently conducting preparation for | |||||||||||
Darwin | commencement of FEED work that is expected to | |||||||||||
Block | 0 | 200km | take 1 to 2 years. | |||||||||
Aiming for production start‐up in the latter half | ||||||||||||
Map includes provisional maritime boundaries | ||||||||||||
of 2020s. |
10% participating interest will be transferred to an Indonesian participant to be designated by the Indonesian government in accordance with PSC conditions.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 25 |
ACG Oil Fields
INPEX Southwest Caspian Sea, Ltd.
Azerbaijan | Caspian Sea |
Baku
ACG Oil Fields
Deepwater Gunashli Field
Chirag Field | |
Kazakhstan | Azeri Field |
Russia
Uzbekistan | Oil Field | |||
Azerbaijan | Block | |||
Turkmenistan | ||||
Iran | Pipeline | |||
0 | 50km | |||
Copyright © 2020 INPEX CORPORATION. All rights reserved.
-
Participating Interest: 9.3072%*1
(Operator: BP) - PSC: Until 2049*2
- Production volume *3 : Approximately 497,000 bbl/d
- Milestones
- Started oil production in the Chirag Field in 1997
- Started oil production in the central section of the Azeri Field in February 2005
- Started oil production in the western section of the Azeri Field in December 2005
- Started oil production in the eastern section of the Azeri Field in October 2006
- Started oil production in the Deepwater Gunashli Field in April 2008
- Started oil production in the western section of the Chirag Field in January 2014
- Azeri Central East project FID was signed in April 2019.
*1 INPEX's participating interest has changed to 9.3072% as a result of the extension and amendment of the PSA effective January 1, 2018.
*2 The extension of the PSA until 2049 was agreed in 2017.
*3 Average daily production volume for January to June 2020 on the basis of all fields
26
Kashagan Oil Field and others INPEX North Caspian Sea, Ltd.
North Caspian Sea
Caspian Sea
Kazakhstan
Kairan Structure
Participating Interest: 7.56% (Operator: | |
NCOC (North Caspian Operating | |
Company)) | |
PSC: Kashagan ‐ Until 2021*1 | |
| Production volume*2 |
Crude Oil: Approximately 300,000 bbl/d | |
Milestones | |
Oil shipments at Kashagan Oil Field commenced | |
in October 2016 | |
Reached target production volume of 370,000 |
Kashagan Oil Field | Aktote Structure | |
Russia | ||
Kazakhstan | ||
Oil Field | Turkey | |
Iran | ||
Gas Field | India | |
Block | ||
bbl/d. Production operations ongoing targeting |
450,000 barrels per day |
Agreed with the Kazakhstan government on |
extending the evaluation period of the |
Aktote/Kairan structures by five years and |
continuing development scenario studies. |
*1 Current PSC provide options to extend the contract period by 10 years twice (until 2041)
*2 Average daily production volume for June 2020 on the basis of all fields
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 27 |
BTC (Baku‐Tbilisi‐Ceyhan) Pipeline Project INPEX BTC Pipeline, Ltd.
Russia | ||||||||||
Russia | ||||||||||
Georgia | Caspian Sea | |||||||||
Black | Tbilisi | |||||||||
Sea | ||||||||||
Turkey | ||||||||||
Armenia | Baku | |||||||||
BTC Pipeline | Azerbaijan | |||||||||
Turkey | ||||||||||
Ceyhan | Iran | |||||||||
Mediterranean | ||||||||||
Sea | Cyprus | Syria | Iraq | |||||||
0 | 200km | Pipeline | ||||||||
- Participating Interest: 2.5%
(Operator : BP) - Oil export volume*: Approximately 644,000 bbl/d
- Milestones
- Acquired a 2.5% participating interest in the operating company (BTC Co.) through INPEX BTC Pipeline, Ltd. in October 2002
- Commenced crude oil export in June 2006 from Ceyhan terminal
- Completed 1.2 million bbl/d capacity expansion work in March 2009
- Cumulative export volume reached 1,000 million bbls on September 13, 2010
- Cumulative export volume reached 2,000 million bbls on August 11, 2014
- Cumulative export volume reached 3,000 million bbls on July 17, 2018
* Average transportation volume for 2019
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 28 |
Sakhalin‐1
Sakhalin Oil and Gas Development Co., Ltd.
Russia
Peopleʹs Republic
of China
Russia
Sakhalin Island
Peopleʹs Republic
of China
Sakhalin Oil and Gas Development Co., | |
Ltd. (SODECO)'s participating interest in | |
Sakhalin‐1: 30% | |
INPEX's share in SODECO: | |
Approximately 6.08% | |
Operator: Exxon Neftegas Limited (ENL) | |
Milestones | |
| Commenced production from Chayvo in October |
2005; commenced crude oil export in October | |
2006 | |
Commenced production from Odoptu in | |
September 2010 |
0200km
Hokkaido
| Commenced production from Arkutun‐Dagi in |
January 2015 | |
| Currently supplying natural gas to Russian |
market |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 29 |
INK Project, East Siberia
Japan South Sakha Oil Co. Limited
Russia | Russia | Yakutsk | |||||||
Zapadno‐ | |||||||||
Peopleʹs Republic | Yaraktinskiy Block | ||||||||
of China | |||||||||
Taishet | Boloshetirskiy Block | ||||||||
Skovorodino | |||||||||
Lake Baikal | |||||||||
Irkutsk | |||||||||
Daqing | |||||||||
Mongolia | Vladivostok | ||||||||
Block | Peopleʹs Republic | ||||||||
0 | 500km | of China | |||||||
- Japan South Sakha Oil Co. Limited (JASSOC)'s shares in Joint Stock Company INK‐ZAPAD: 49%
- INPEX's share in JASSOC: 24.998%
- Operator : INK‐ZAPAD
- License agreement: 25 years (Until 2031)
- Production volume*: Approximately 23,000 bbl/d of crude oil
- Milestones
- Commenced production from the Ichyodinskoye Oil Field in November 2014
* Average daily production volume for June 2020 on the basis of all fields
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 30 |
Block 10, Iraq (Eridu Oil Field)
INPEX South Iraq, Ltd.
Turkey | Iraq | |
Iran | ||
Iran | ||
Saudi Arabia | Baghdad | |
Gharraf Oil Field* | West Qurna Oil Field* | |
Saudi Arabia | Nasiriyah Oil Field* | |
Basra | ||
Oil Field | Eridu Oil Field (Block 10) | |
Block | ||
Rumaila Oil Field* |
0 100km
- INPEX does not participate in these fields
Copyright © 2020 INPEX CORPORATION. All rights reserved.
-
Participating Interest: 40%
(Operator: LUKOIL) - Block acquired: December 2012 (Republic of Iraq 4th Licensing Round)
- EDPSC*1
- Exploration Period: 9 years (Until December 2, 2021)*2
- Development and Production Period: 20years*3
- Milestones
- Oil deposits were discovered through the first exploratory drilling conducted in February 2017. Thereafter, the extent of the deposits was confirmed by appraisal wells drilled in 2017.
- As the deposits most likely extend beyond the Contract Area, an extension application for the Contract Area was submitted and approved in November 2017.
- Exploration and evaluation work is underway to study the possibility of commercial development.
*1 Exploration, Development and Production Service Contract
*2 Exploration Period has been extended by 4 years for further exploration
and appraisal works to be conducted, in accordance with the EDPSC
*3 The current service contract provides the option to extend the Development and Production Periods by 5 years
31
Norwegian Continental Shelf Projects
INPEX Norge AS
0 | 70km | |||||
Norwegian sea | ||||||
Awards in Predefined Areas (APA) | ||||||
Block | ||||||
Norwegian sea | Sweden | |||||
Awards in | ||||||
Predefined | Norway | Finland | ||||
Areas (APA) | ||||||
PL1016 | ||||||
Predefined | ||||||
Awards in |
Areas (APA)
NorwayPL1027
Norway
Sweden 0 70km
Copyright © 2020 INPEX CORPORATION. All rights reserved.
- PL1016, Northern Norwegian Sea
Participating Interest: 40%
(Operator: OMV Norge AS)
Block Acquisition: March 1, 2019
Concession Agreement
• Exploration and Appraisal Period: 7 years (to 2026)
• Development and Production Period: 25 years
License awarded in January 2019
PL1027, Western Barents Sea
Participating Interest:20%
(Operator: Lundin Norway AS)
- Block Acquisition: March 1, 2019
- Concession Agreement
- Exploration and Appraisal Period: 8 years (to 2027)
- Development and Production Period: 25 years
- License awarded in January 2019
- Exploratory well 7221/4‐1 is planned to be drilled in 2020.
32
Abu Dhabi Offshore Oil Fields
Japan Oil Development Co., Ltd. (JODCO) / JODCO Lower Zakum Limited
Das Island | ||||||
Upper / Lower Zakum Oil Fields | ||||||
Satah Oil Field | Zirku Island | |||||
Umm Al‐Dalkh Oil Field Abu Dhabi | ||||||
Iran | ||||||
Saudi Arabia | Oil Field | United Arab Emirates | ||||
Pipeline | ||||||
- Upper Zakum Oil Field (JODCO)
- Participating Interest: 12%
(Operator: ADNOC Offshore)
- Concession agreement: Until 2051
- Lower Zakum Oil Field (JODCO Lower Zakum Limited)
- Participating Interest: 10% (Operator: ADNOC Offshore)
- Concession agreement: Until 2058
- Satah/Umm Al Dalkh oil fields
(JODCO)
- Participating Interest: 40% (Operator: ADNOC Offshore)
- Concession agreement: Until 2043
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 33 |
Abu Dhabi Onshore Concession JODCO Onshore Limited
Abu Dhabi | |||||
Al Dabb'iya Field | |||||
Jumaylah Field | Shanayel Field | ||||
Uwaisa Field | Rumaitha Field | ||||
Bida Al‐Qemzan | Bab Field | Arjan Field | |||
Field | Sahil Field | ||||
Bu Hasa Field | United Arab Emirates | ||||
Huwailla Field | Asab Field | ||||
Iran | |||||
Qusahwira Field | |||||
Shah Field | |||||
Saudi Arabia | Oil Field | ||||
Pipeline | Mender Field | ||||
- Participating interest: 5%
(Operator: ADNOC Onshore*) - Concession agreement: Until 2054
- Operating company owned by companies with participating interests. JODCO Onshore Limited has a 5% share in the operating company.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 34 |
Abu Dhabi Onshore Block 4
JODCO Exploration Limited
Iraq | Iran | |||||
Saudi Arabia | ||||||
Oman | ||||||
Onshore Block 4 | ||||||
Abu Dhabi City | ||||||
Saudi Arabia | ||||||
Block | United Arab Emirates | Oman | ||||
0 | 100km | |||||
Participating interest: 100% (Operator: JODCO Exploration Limited)
- Block surface area: Approximately 6,116 square kilometers
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 35 |
Offshore D.R. Congo Block Teikoku Oil (D.R. Congo) Co., Ltd.
D.R. Congo | ||||||||||||
Motoba | Lukami | |||||||||||
Mibale | ||||||||||||
Mwanbe | ||||||||||||
Misato | ||||||||||||
Moko | Libwa | |||||||||||
Lubi | ||||||||||||
Muanda | ||||||||||||
Tshiala | ||||||||||||
GCO | Banana | |||||||||||
- Participating Interest: 32.28%
(Operator: Perenco) - Concession Agreement: 1969‐2043
- Production started in 1975
- Production volume*: Approximately 14,000 bbl/d of crude oil
Offshore D.R. Congo Block
Oil Field | * Average daily production volume for June 2020 on the basis of all fields | |
Block | Atlantic Ocean | Soyo |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 36 |
Offshore Angola Block 14
INPEX Angola Block 14 Ltd.
Rep. of
Congo
D.R. Congo
Offshore Angola Block 14 | Republic of |
Angola |
Oil Field | Atlantic Ocean | |||
Block | ||||
0 | 100km | |||
- Participating Interest: 9.998%
(Operator: Chevron) - PSC:
- Kuito DA: Until 2023
- BBLT DA: Until 2027
- TL DA: Until 2028
- Lianzi: Until 2031
- Production volume*: Approximately 55,000 bbl/d of crude oil
* Average daily production volume for June 2020 on the basis of all fields
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 37 |
Copa Macoya and Guarico Oriental Blocks, Venezuela
Teikoku Oil & Gas Venezuela, C.A., other
INPEX's share in joint ventures
Gas JV (Copa Macoya): 70% (Operator)
Oil JV (Guarico Oriental): 30%
Brazil | Atlantic Ocean | |||||||
Caracas | ||||||||
Copa Macoya and | ||||||||
Guarico Oriental Blocks | ||||||||
Venezuela | ||||||||
Block | Columbia | |||||||
0 | 200km | |||||||
Brazil | ||||||||
- Joint Venture Agreement: 2006‐2026
- Production volume*1:
- Natural Gas*2: Approximately 47 million cf/d
*1 Average daily production volume for June 2020 on the basis of all fields. *2 Gas volume sold to buyers.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 38 |
Gulf of Mexico Projects
INPEX Americas, Inc. / INPEX E&P Mexico, S.A. de C.V., other
Texas Louisiana
Keathley Canyon Blocks
874/875/918/919
(Lucius Field and Hadrian North Field)
R1.4 Block 3 (Perdido)
Lucius Oil Field & Hadrian North Field (INPEX Americas, Inc. )
Lease Agreement
Participating Interest: 7.75309%
(Operator : Occidental) Production volume*1
• Crude Oil: Approximately 30,000bbl/d
• Natural Gas*2: Approximately 31 million cf/d Milestones
• Production of crude oil and natural gas started in January 2015
• Revised Unit Participating Agreement (UPA) on unitization reached in September 2017 between project partners of Lucius Oil Field and Hadrian North Oil Field located south of Lucius
• Production from Hadrian North started in April 2019
• Buckskin tie‐in to Lucius SPAR started in June 2019
Mexico
Cuba
Block 3, Perdido Fold Belt, Mexican Gulf of Mexico
R2.4 Block 22 (Salina)
0 | 1,000km | ||
(INPEX E&P Mexico PB‐03, S.A. de C.V.)
License Agreement
Participating interest: 33.3333% (Operator: Chevron)
- Block 22, Salina Basin, Mexican Gulf of Mexico (INPEX E&P Mexico, S.A. de C.V.)
- License Agreement
- Participating interest: 35% (Operator: Chevron)
Copyright © 2020 INPEX CORPORATION. All rights reserved.
*1 Average daily production volume for June 2020 on the basis of all fields. *2 Gas volume sold to buyers.
39
Tight Oil Project in Texas, US
INPEX Eagle Ford, LLC
Dallas | San Antonio | Gonzales | |
Houston | |||
Wilson | |||
Atascos | Karnes | ||
a | |||
La Salle | Block | ||
0 | 40km | ||
Eagle Ford Shale play | |||
- Participating Interest: 100% (Operator*1)
- Lease Agreement
- Acreage: Approximately 9,800 net acres (Approximately 40 square kilometers)
- Production volume*2:
- Crude Oil: Approximately 12,000bbl/d
- Natural Gas: Approximately 13 million cf/d
- Milestones
- Reached an agreement with GulfTex Energy to acquire multiple development and production assets in the Eagle Ford play in the State of Texas, the United States in March 2019.
*1 INPEX is the Operator except for a portion of project assets
*2 INPEX Net production volume (Average daily production volume forDrilling Site June 2020)
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 40 |
Key Companies and Petroleum Contracts (1/2)
- Key Companies and Petroleum Contracts*1
Company | Field / Project Name | Country | Contract Type | Ownership | Phase |
Japan | |||||
INPEX CORPORATION | Minami‐Nagaoka Gas Field, etc.*2 | Japan | Concession | ‐ | Producing |
Asia and Oceania | |||||
INPEX South Makassar, Ltd. | Sebuku Block(Ruby Gas Field) | Indonesia | PS | 100% | Producing |
MI Berau B.V. | Berau Block (Tangguh LNG Project) | Indonesia | PS | 44% | Producing / Development |
INPEX Masela, Ltd. | Masela Block (Abadi LNG)*2 | Indonesia | PS | 51.9% | Preparation for Development |
Teikoku Oil (Con Son) Co., Ltd. | 05‐1b / 05‐1c Blocks | Vietnam | PS | 100% | Development |
(Sao Vang and Dai Nguyet Gas Fields) | |||||
INPEX Sahul, Ltd. | Bayu‐Undan Gas Condensate Field | Timor‐Leste | PS | 100% | Producing |
INPEX Browse E&P Pty Ltd | WA‐285‐P*2and others | Australia | Concession | 100% | Exploration |
INPEX Ichthys Pty Ltd | WA‐50‐L and WA‐51‐L (Ichthys)*2 | Australia | Concession | 100% | Producing |
Ichthys LNG Pty Ltd | Ichthys Downstream Business*2 | Australia | ‐ | 66.245% | Producing |
INPEX Oil & Gas Australia Pty Ltd | Prelude FLNG Project | Australia | Concession | 100% | Producing |
INPEX Alpha, Ltd. | Van Gogh Oil Field/Coniston Oil Field | Australia | Concession | 100% | Producing |
INPEX Alpha, Ltd. | Ravensworth Oil Field | Australia | Concession | 100% | Producing |
*1 As of the end of June 2020
*2 INPEX operated projects
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 41 |
Key Companies and Petroleum Contracts (2/2)
- Key Companies and Petroleum Contracts*1
Company | Field / Project Name | Country | Contract Type | Ownership | Phase |
Eurasia (Europe ‐ NIS) | |||||
INPEX Southwest Caspian Sea, Ltd. | ACG Oil Fields | Azerbaijan | PS | 51% | Producing |
INPEX North Caspian Sea, Ltd. | Kashagan Oil Field | Kazakhstan | PS | 51% | Producing |
Middle East and Africa | |||||
JODCO | Upper Zakum Oil Field, etc. | UAE | Concession | 100% | Producing |
JODCO Lower Zakum Limited | Lower Zakum Oil Field | UAE | Concession | 100% | Producing |
JODCO Onshore Limited | Onshore Concession | UAE | Concession | 51% | Producing |
Teikoku Oil (D.R. Congo) Co., Ltd. | Offshore D.R.Congo | D.R.Congo | Concession | 100% | Producing |
INPEX Angola Block14 | Offshore Angola Block 14 | Angola | PS | 100% | Producing |
Americas | |||||
Teikoku Oil & Gas Venezuela | Copa Macoya*2 and Guarico Oriental | Venezuela | Concession | 100% | Producing |
INPEX Americas, Inc | Lucius Field and Hadrian North Field | USA | Concession | 100% | Producing |
INPEX Eagle Ford, LLC | Eagle Ford Tight Oil Project*3 | USA | Concession | 100%*3 | Producing |
*1 As of the end of June 2020
*2 INPEX operated projects
*3 INPEX operated projects except for a portion of project assets
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 42 |
Other data and information
Valuation Indices
EV/Proved Reserves*1 | PBR*2 | |||||||||||
20 | ||||||||||||
1 | ||||||||||||
15 | 0.8 | |||||||||||
0.6 | ||||||||||||
10 | ||||||||||||
0.4 | ||||||||||||
5 | 0.2 | |||||||||||
0 | 0 | |||||||||||
INPEX | Median of | Median of Oil Majors | INPEX | Median of | Median of Oil Majors | |||||||
Independents | Independents |
*1 EV (Enterprise Value) / Proved Reserves = (Total market value + Total debt ‐ Cash and cash equivalent + Non‐controlling interests) / Proved Reserves. Total market value as of June 30, 2020. Financial data as of March 31, 2020 (partly as of December 31, 2019). Proved Reserves as of December 31, 2019. Sources based on public data.
*2 PBR = Share price / Net asset per share. Total market value as of June 30, 2020. Financial data as of March 31, 2020 (partly as of December 31, 2019). Sources based on public data.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 44 |
Vision 2040
エネルギーの未来に応えるThree Business Objectives
Sustainable Growth of Oil and | Development of Global Gas | Reinforcement of |
Natural Gas E&P Activities | Value Chain Business | Renewable Energy Initiatives |
A top 10 | A key player | 10% |
international oil company | in natural gas development and | of project portfolio |
supply in Asia & Oceania |
- Growth in both volume and value
- Volume: Aspire to achieve a production volume of 1 million BOED, continuously expand reserves
- Value: Significantly increase net income and cash flow from operations, improve capital efficiency
- Develop gas demand in Asia and other growing markets
- Increase domestic gas supply volume over 3 billion m3
- Maximize value of the upstream gas interests
- Maintain / strengthen supply and demand management and trading functions
- Proactively address climate change
- Expand participation in wind power generation and other areas in addition to geothermal power, which draws on synergies with E&P activities
- Conduct R&D in renewables to reduce greenhouse gas emissions
Develop a foundation by conducting CSR management,
particularly accelerating response to climate change and utilizing INPEX's strengths
Reduce carbon footprint, strengthen ESG initiatives and contribute to the realization of SDGs
Allocate cash generated from projects to shareholder returns and investments for growth
Continuously and sustainably increase corporate value
Note: Announced on May 11, 2018
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 45 |
Medium‐term Business Plan 2018‐2022
Cash Allocation during the 5‐Year Period*1
Cash In | Cash Out | |
Cash flow | Investment | |
from | for growth | |
operations | ||
before | ¥1.7 trillion*2* | |
exploration | ||
(70% for existing | ||
expenditure | ||
projects, 30% for | ||
new projects) | ||
¥2.5 trillion | Shareholder | |
returns | ||
Debt | ||
Others | reduction | |
*1 Assumes | price (Brent) of US$60/bbl and an exchange rate of ¥110/US$. |
Includes Ichthys downstream JV.
*2 All expenditures for "Main Business Initiatives" as addressed from (1) to (3)
Main Business Initiatives
(1) Oil & Natural Gas | (2) Global Gas Value Chain | ||||||||||||||
Upstream | | Achieve annual gas supply volume of 2.5 billion m3 | in Japan | ||||||||||||
| Conduct LNG/gas marketing for Abadi, create gas demand in | ||||||||||||||
Major assets & projects | Asia, etc. | ||||||||||||||
Core business areas | (3) Renewable Energy | ||||||||||||||
Kashagan Oil Field | |||||||||||||||
| Promote geothermal power generation business and enter wind | ||||||||||||||
ACG Oil Fields | Priority exploration | power generation business | |||||||||||||
areas | | Enhance R&D of renewable energy technologies | |||||||||||||
Eridu Oil Field (Block 10 in Iraq) | |||||||||||||||
Minami‐Nagaoka Gas Field | |||||||||||||||
Abu Dhabi Offshore and | Abadi LNG Project | ||||||||||||||
Onshore Oil Fields | |||||||||||||||
Prelude FLNG | |||||||||||||||
Upstream Business Targets for FY2022 | |||||||||||||||
Ichthys LNG | Net production | 700 KBOED | |||||||||||||
RRR | Maintain 100% or higher | ||||||||||||||
Production cost | Reduce to US$5/BOE |
Note: BOE stands for barrels of oil equivalent.
RRR is the 3‐year average. RRR stands for Reserve Replacement Ratio (Proved reserves increase including acquisition / Production). Production cost is the production cost per barrel, excluding royalty.
Enhancing Shareholder Returns
- In FY2018, plan to issue a commemorative dividend following the Ichthys LNG Project's start‐up and shipment of cargo
- Shareholder return policy during FY2018‐2022
- Maintain base dividends not falling below ¥18 per share plus the commemorative dividend as above
- Enhance annual dividends in stages by increasing the dividend per share in accordance with the growth of the Company's financial results
Payout ratio : 30% or higher
Commemorative
dividend
Annual
¥18 per share
FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 |
Period of the Medium‐term Business Plan |
Copyright © 2020 INPEX CORPORATION. All rights reserved.
Financial Targets
FY2022 | FY2017 Results | |
Crude oil price/exchange rate assumptions | US$60 / ¥110 | US$57.85 / ¥110.86 |
Net sales | Around ¥1,300 bn | ¥933.7 bn |
Net income attributable to owners of parent | Around ¥150 bn | ¥40.3 bn |
Cash flow from operations | Around ¥450 bn | ¥278.5 bn |
Return on equity (ROE) | 5% or higher | 1.4% |
- Maintain financial strength (expecting an equity ratio of 50% or higher)
- Maintain financial and corporate resilience even if the crude oil prices drop to US$50/bbl
Note:
Crude oil price assumption is per one barrel of Brent crude oil; the exchange rate assumption is per U.S. dollar.
Targets are on a financial accounting basis.
Sensitivity of FY2022 net income attributable to owners of parent to the crude oil price and exchange rate is approximately +¥8.0 billion (‐¥8.0 billion) from a US$1/bbl increase (decrease) in the Brent crude oil price and approximately +¥2.0 billion (‐¥2.0 billion) from a ¥1/US$ depreciation (appreciation).
See page 5 of "Medium‐term Business Plan 2018‐2022" (URL: https://www.inpex.co.jp/english/company/pdf/business_plan.pdf) for other notes.
Note: Announced on May 11, 2018
46
Annual Dividends and Payout Ratio
36 yen | 180% | ||||||||||||||
30 yen | |||||||||||||||
33 yen | 157% | 6 yen | 160% | ||||||||||||
30 yen | |||||||||||||||
24 yen | 140% | ||||||||||||||
27 yen | 6 yen | ||||||||||||||
24 yen | 120% | ||||||||||||||
24 yen | |||||||||||||||
24 yen | |||||||||||||||
21 yen | |||||||||||||||
100% | |||||||||||||||
18 yen | |||||||||||||||
18 yen | 18 yen | ||||||||||||||
18 yen | 18 yen | 18 yen | 18 yen | 80% | |||||||||||
15 yen | |||||||||||||||
12 yen | 57% | 65% | 36% | 35% | 60% | ||||||||||
9 yen | 34% | 40% | |||||||||||||
Payout Ratio | |||||||||||||||
6 yen | |||||||||||||||
14% | is N/A due to | 20% | |||||||||||||
3 yen | net loss | ||||||||||||||
0% | |||||||||||||||
0 yen | |||||||||||||||
2014/3 | 2015/3 | 2016/3 | 2017/3 | 2018/3 | 2019/3 | 2019/12 | 2020/12 | ||||||||
(Forecast) |
Dividends Dividends (commemorative dividend) Dividends (increased dividend) Payout Ratio (right axis)
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 47 |
CSR Topics
- INPEX engages in a variety of ESG activities focused on the following 6 material issues
| Strengthen governance structure | |
Governance | Upgrade risk management system | |
| Prevent of major incidents | |
| Secure occupational health and safety | |
HSE | | Conserve biodiversity, manage water resource |
appropriately |
- Promote renewable energy business
-
Develop natural gas as a cleaner source of energy Climate Change Strengthen climate‐related risk management
Response
Compliance
Local Communities
Employees
Respect human right
Comply with laws, prevent bribery and corruptions Conduct Environmental and Social Impact Assessment (ESIA) in supply chain
Assess and take measures to reduce impact on local and indigenous communities
Contribute to local economies
Develop personnel and enhance the motivation of the workforce Promote diversity
Environment | Social | Governance |
- INPEX is included in major ESG indexes
INPEX has been included in the FTSE4Good Global Index, FTSE4Good Japan Index, and in the FTSE Blossom Japan | ||||
FTSE | Index. The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong | |||
Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index was adopted as comprehensive | ||||
indices incorporating ESG factors by the | Government Pension Investment Fund for Japan (GPIF), one of the world's | |||
largest pension funds. | ||||
INPEX is constituent of the MSCI ESG Leaders Indexes, MSCI Japan ESG Select Leaders Index and MSCI Japan | ||||
MSCI | Empowering Women Index (WIN) , a leading set of indexes in the selection of outstanding companies in ESG | |||
developed by Morgan Stanley Capital International (MSCI). MSCI Japan ESG Select Leaders Index and MSCI Japan | ||||
Empowering Women Index (WIN) have been adopted by the Government Pension Investment Fund for Japan (GPIF) | ||||
as indices incorporating ESG factors. | ||||
S&P/JPX Carbon | INPEX has been included in the S&P/JPX Carbon Efficient Index, which has been adopted by the Government Pension | |||
Efficient Index | Investment Fund for Japan (GPIF) as environmental indices incorporating carbon efficiency and disclosure. | |||
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 48 |
Production Sharing Contracts
Cost Recovery
Portion
Host Country Profit Oil | Contractor |
Profit Oil | |
1. Cost Recovery Portion
Non‐capital expenditures recovered during the current period
capital expenditures recovered during the current period
Recoverable costs that have not been recovered in the previous periods
2. Equity Portion (Profit Oil)
Host Country | Contractor |
Share | Share |
: Host Country Take | |
: Subject to Tax | Contractor Take |
: Not Subject to Tax | |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 49 |
Accounting on Production Sharing Contracts
Cash Out | Assets on Balance Sheet | ||
Project under | |||
exploration phase | |||
Exploration | Recoverable accounts | ||
Expenditures | under production sharing | ||
Project under development | |||
and production phase | |||
Development | |||
Expenditures | |||
Recoverable accounts | |||
under production sharing | |||
Production Costs | |||
(Operating expenses) | |||
Project under | |||
development and production phase | |||
Acquisition Costs | Exploration and | ||
development rights | |||
Income Statement
Provision for allowance for recoverable accounts under production sharing
Cost of sales
Recovery of recoverable accounts under production sharing (Capital expenditures)
Cost of sales
Recovery of recoverable accounts under production sharing (Non‐ Capital expenditures)
SG&A
Depreciation and amortization
Other Expenses
Amortization of exploration and development rights
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 50 |
Accounting on Concession Agreements
Cash Out | Assets on Balance Sheet | Income Statement |
All exploration costs are
Explorationexpensed as incurredExploration expenses
Expenditures
Development | Cost of sales | |||
Tangible Fixed Assets | (Depreciation and | |||
Expenditures | ||||
amortization) | ||||
All production costs are | ||||
Production Costs | Cost of sales | |||
expensed as incurred | ||||
(Operating expenses) | (Operating expenses) | |||
Acquisition Costs | Mining Rights | Cost of sales | ||
(Depreciation and | ||||
amortization) |
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 51 |
Ichthys LNG Project Accounting Process Overview
Ichthys Upstream Permit
Holding entity (UJV)
Sales Revenue
Production Costs
(Operating Expenses)
Development Expenditures
(Depreciation and Amortization)
Ichthys Downstream entity
(IJV)
Sales Revenue
Raw Material Costs
(Purchase of Feed Gas from UJV)
Production Costs
(Operating Expenses)
Development Expenditures
(Depreciation and Amortization)
Interest Expense
Assets on Consolidated
Balance Sheet
All production costs are expensed as incurred
Tangible Fixed Assets
- INPEX share of IJV's net income/loss are reflected as "equity in earnings/losses of affiliates". Depreciation is calculated on a straight line basis over the life of the project.
Consolidated Income
Statement
Net Sales
Cost of sales
(Operating expenses)
Cost of sales
(Depreciation and amortization)
- Depreciation is calculated on an units of production basis over the life of the project
Other Income/Expenses (Equity in earnings/losses of affiliates)
- Ichthys Downstream entity (IJV) is an equity‐method affiliate and its cash flow does not appear on the consolidated cash flow statement
- Only major cost and expenditure items are shown.
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 52 |
Summary of Australian Taxation
⇒(Oil & Gas sales price)×(Sales volume) | …………..(1) | ||
Sales | |||
⇒OPEX incurred in relevant year (+Exploration cost)+CAPEX tax depreciation | …………..(2) | ||
Operating expense |
PRRT (Petroleum Resource Rent Tax) | |
= (Upstream Revenue ‐ Upstream CAPEX & OPEX ‐ Exploration Cost ‐ Abandonment Cost ‐ | |
Undeducted PRRT expenditure carried forward) x 40% | …………..(3) |
- PRRT deductions are made in the following order: Upstream CAPEX, OPEX, Exploration Cost, Abandonment Cost.
Note: Exploration cost is subject to mandatory transfer between Projects/members of the same group of entities.
Corporate Tax (In Australia)
-
Undeducted PRRT Expenditure: non‐utilized deductible PRRT expenditure can be carried forward to the following year(s), subject to augmentation at the rates set out below;
o Development cost: LTBR+5% or LTBR or GDP deflator
o Exploration cost: LTBR+15% or LTBR+5% or GDP deflator
Note: The interest rate to be applied varies depending on the timing of application for a production license, the timing of exploration/development expenses and the number of years elapsed from the payment of expenses. LTBR = Long Term Bond Rate, GDP deflator = GDP deflator of Australia.
Corporate Tax = {(1) - (2) - (3) ‐ Interest paid) x 30%*
- The legal tax rate of Australian corporate tax may differ from the accounting burden of corporate tax etc. on INPEX's subsidiaries in Australia. In addition, the amount of corporate tax etc. in accounting may differ from the amount of corporate tax paid in Australia.
Note: Content may change due to tax revisions
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 53 |
Historical Crude Oil Prices
(US$/bbl) 90
80
70
60
50 40 30 20 10 0
Brent WTI Dubai
2017 | 2018 | 2019 | 2020 |
Jan to June 2019 | FY2019/12 | 2020 | Jan to June 2020 | |||||||||
(Apr to Dec 2019) | ||||||||||||
Average | Average | Jan | Feb | Mar | Apr | May | Jun | Average | ||||
Brent | 66.11 | 64.27 | 63.67 | 55.48 | 33.73 | 26.63 | 32.41 | 40.77 | 42.12 | |||
WTI | 57.36 | 57.74 | 57.53 | 50.54 | 30.45 | 16.70 | 28.53 | 38.31 | 37.01 | |||
Dubai | 65.45 | 63.53 | 64.29 | 54.22 | 33.70 | 20.39 | 30.47 | 40.79 | 40.64 | |||
Copyright © 2020 INPEX CORPORATION. All rights reserved. | 54 |
Attachments
- Original document
- Permalink
Disclaimer
Inpex Corporation published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 06:08:15 UTC