Segment Overview

Asia &
Oceania

Eurasiau p. 28

u p. 20

4

16

Number of projects
In production

43

10

Under development

1,218

1,245

1,296

1,551

7

Number of countries

1

14
1

6

1

2

1

3

Preparation for development
Under exploration(oil and gas reservoirs conﬁrmed)

018

INPEX CORPORATION Annual Report 2015

68,319

197
27

191

190
26

25

188

2015

94,0502013

2014

96,341

2012

2013

85,541

2011

2012

84,325

2011

2014

2015

2010

2011

2014

2015

2012

2013

32,22842,601

41,75247,076

36,461

39,769Operating income (¥ million)

2010

25

2010

409,776
264,849

281,623

2015

2014

485,069

2013

485,275

483,187
299,599

235,814352,3832012

178,225

Net sales (¥ million)

191,070

Net sales/
Operating income

2011

406,828

2010

73,574

27

28

207

166

167

179

201

Net production (thousand boed)

195

Proved reserves (million boe)

214

Production/Reserves

210

367

Other

466

Under exploration

Middle East
& Africa

Americas

Japan

6

7

1

u p. 32

u p. 36

u p. 30

9

3

7

1

4

2013

2014

2015

2010

163

174
27

2013

2014

2015

129,522

2012

120,268

2011

25

130

138
29

28

117

126
25

2010

113,662

2015

30

74
21

65

2014

104,525

2013

20

68

36

17

18

2012

2011

2012

2013

2014

2015

2010

2011

2013

2014

16,693

22,771

118,937

2012

28,56824,60725,95932,555(15,303)

13,351

11,435(7,646)(6,089)

5,945

5,525
(5,518)(3,035)

12,673

16,692
2012

2011

333,213

1,028

2011

30

40

2010

93,9592015

524,528

621,513421,184

357,343

354,136

350,735

2014

243,113

303,819
205,5722013

520,8352012

500,033

2011

21

21

169

168

505

518
158

155

135

132

Natural gas
pipeline network(Approx. 1,400 km)
etc.

10

Project Overview

2010

2010

16

Naoetsu LNG
Terminal

583

636

857

1

Minami-Nagaoka
Gas Field

2

783

1

2015

INPEX CORPORATION Annual Report 2015019

Project Overview by Region

Asia & Oceania

In the Asia and Oceania region, INPEX holds participating interests in the Offshore
Mahakam Block in Indonesia, which is contributing signiﬁcantly to earnings, and thelarge-scale Ichthys and Abadi LNG projects, where development and preparatory
development activities are under way. The Company is also actively advancing morethan 20 exploration projects with growth potential across the region.

020

INPEX CORPORATION Annual Report 2015

1 Offshore Mahakam Block and Attaka Unit
INPEX entered into a production sharing contract (PSC) with the Indonesian
Government in October 1966, at thattime acquiring a 100% interest in the
Offshore Mahakam Block. The Attaka
Unit was established in April 1970
through the unitization of part of theadjacent blocks owned by INPEX andUnocal (now Chevron), with each company taking a 50% interest. Productionof crude oil and natural gas has continued since 1972. INPEX farmed out 50%
of its interest in the Offshore Mahakam
Block to CFP (now TOTAL) in July 1970.
Contract area
(block)Offshore Mahakam
Attaka Unit

This venture subsequently made a seriesof discoveries in the Bekapai (oil), Handil(oil), Tambora (oil and gas), Tunu (gas),
Peciko (gas), Sisi and Nubi (gas), as wellas the South Mahakam (gas), ﬁelds, eachof which has continued to produce crude
oil and natural gas. The crude oil and condensate produced from these ﬁelds areshipped mainly to oil reﬁneries and powercompanies in Japan by tanker from theSantan and Senipah terminals. Most of
the natural gas is supplied to the Bontang
LNG Plant, and then shipped as LNG tocustomers in Japan and elsewhere.

Project status(production on the basis of all fields and average rate of FY2014)
In production

Crude oil: 72 Mbbld
Natural gas: 1,257 MMcf/d
LPG: 11 Mbbld

Bontang LNG Plant

The Offshore Mahakam Block has
begun to see output decline after morethan 40 years of production. In 2012,
impediments at production wells led toa large drop in output, in addition to natural attrition. Thereafter, successful steps
were taken to control the decline in production. In addition to measures aimed
at counteracting sand problems, INPEX
accelerated the pace at which it undertook development well drilling. Production volumes have remained stable since
2013.

Venture company(established)

Interest owned(*Operator)

INPEX CORPORATION(February 21, 1966)

INPEX 50% TOTAL* 50%
INPEX 50% Chevron* 50%

Attaka Unit

Santan Terminal

Attaka Field

Badak Field
Nilam Field

Tunu Field

4

Tambora Field
Sisi Field

Handil Field
Senipah Terminal

Project Overview

Nubi Field
Bekapai Field

Balikpapan

Peciko Field

Offshore
MahakamBlock

INDONESIASouth Mahakam Field
Gas field

Oil field

Oil and gas field

1

2

1: Compression unit 2: Production facility

INPEX CORPORATION Annual Report 2015021

2 South Natuna Sea Block B

FPSO vessel

In July 1977, INPEX acquired a 17.5%
interest in the South Natuna Sea Block B in
Indonesia. Later, in January 1994, INPEX
increased its total interest in the block to
35% with the purchase of an additional
interest. Crude oil production began in
1979, and supplies of natural gas to Singapore via Indonesia’s ﬁrst international
pipeline commenced in 2001. Additionaldeliveries of natural gas from this pipeline
to Malaysia started in 2002. These supply
milestones contributed to the extensionof the PSC covering the block until 2028.
Production operations in the Belanak
oil and gas ﬁeld, which is part of SouthNatuna, utilize a world-class ﬂoating pro-duction, storage and ofﬂoading (FPSO)
system. Production of crude oil and condensate began in December 2004, with
LPG production commencing in April
2007. After 2006 at this same block, production began at the Hiu Gas, Kerisi Oiland Gas, North Belut Gas and Bawal Gas
ﬁelds. Most recently, production commenced at the South Belut Gas Field in
April 2014.

Natuna Sea
North Belut
BelidaBawal

SembilangSouth Natuna Sea
Block B

KerisiSouth Belut
Hiu
BelanakGas field

NatunaIslandOil field

Oil and gas field

Contract area
(block)Project status(production on the basis of all fields andaverage rate of FY2014)

Venture company(established)

Interest owned(*Operator)

South Natuna
Sea B

Crude oil: 27 Mbbld
In production Natural gas: 354 MMcf/d
LPG: 12 Mbbld

INPEX Natuna, Ltd.
(September 1, 1978)

INPEX Natuna 35%
ConocoPhillips* 40%
Chevron 25%

3 Sebuku Block Ruby Gas Field

Offshore production facility in the Ruby Gas Field

022

In September 2010, INPEX obtained a
15% interest in the Sebuku Block off theshore of South Makassar, Indonesia. Thereafter, work began to develop the Ruby
Gas Field in the block, and productionof natural gas followed in October 2013.
The natural gas produced here is transported from offshore production facilities
via undersea pipeline to onshore storage
facilities that receive products from the
Offshore Mahakam Block. The natural gas
is then mainly sent via inland pipeline to a
fertilizer plant in East Kalimantan.

Bontang LNG Plant
Santan Terminal

Fertilizer plant
Attaka Field
Tunu Field

Senipah Terminal
Balikpapan

Peciko Field

Kalimantan

South Mahakam Field
Makassar Strait

INDONESIA

Sebuku BlockGas field
Oil field

Sulaewesi

Ruby Gas Field

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2014)

Venture company(established)

Interest owned(*Operator)

SebukuIn production (Natural gas: 73 MMcf/d)

INPEX South Makassar, Ltd.
(May 17, 2010)

INPEX South Makassar 15％
PEARL OIL (Sebuku) Ltd.* 70% TOTAL 15%

INPEX CORPORATION Annual Report 2015

4 Abadi LNG Project
INPEX acquired a 100% interest in the
Masela Block in November 1998 throughan open bid conducted by the Indonesian government and subsequently went
about exploratory activities as Operator,
discovering the Abadi Gas Field throughthe ﬁrst exploratory well drilled in 2000.
The company subsequently drilled two
appraisal wells in 2002 and four in 2007–2008, all of which conﬁrmed the presence of gas and condensate reservoirs.
In December 2010, Indonesian authorities approved the initial plan of development (POD-1) deploying a ﬂoating LNG(FLNG) plant with an annual processing
capacity of 2.5 million tons, and from
November 2012 to November 2014,
INPEX undertook SURF (subsea, umbilical, riser and ﬂowline) and FLNG FEED

work. Meanwhile, INPEX also has studied
the feasibility of full ﬁeld development,
drilling three appraisal wells between
2013 and 2014 with the aim of expanding the volume of recoverable reserves.
Evaluations of these wells resulted in the
conﬁrmation of a substantially greater
volume of natural gas reserves, which
was certiﬁed by Indonesian authorities.
Taking those into consideration, INPEX isstudying ways to optimize development
plans centered on a large-scale FLNG
and is currently in discussions with theIndonesian government.

Tanimbar Island
INDONESIA

Abadi Gas Field

Timor Sea

Arafura Sea

AUSTRALIA

DarwinGas field

Contract area (block)

Project status

Venture company (established)

Interest owned (*Operator)

MaselaPreparation fordevelopment

INPEX Masela, Ltd.
(December 2, 1998)

INPEX Masela* 65%
Shell 35％

4
Project Overview

1

2

3
1: Drillship for the Abadi LNG Project 2: Production test 3: Floating LNG (rendering)

INPEX CORPORATION Annual Report 2015023

5 The Ichthys LNG Project and Surrounding Blocks
Project Overview
In 1997, INPEX placed an open tenderbid to acquire the petroleum exploration
permit WA-285-P located approximately
200 km northwest of Western Australia’s
Kimberley coast. This bid was acceptedin August 1998. During the initial phaseof exploration, which began in March
2000, the Company drilled three exploratory wells that conﬁrmed the presenceof gas and condensate. As part of a second drilling campaign, INPEX conducted
three-dimensional seismic surveys while
drilling an additional two wells. These
activities helped to identify the existence of sufﬁcient recoverable reserves
to warrant commercial development.
Thereafter, progressive steps were taken
to transition toward development. In
addition to undertaking front-end engineering and design (FEED) operations,the Company channeled its energies
toward acquiring government approvaland engaging in LNG marketing andother related activities from 2009. A ﬁnal
investment decision (FID) was madein January 2012 triggering the start offully ﬂedged development work. In the

Status of Development Work
Development work was more than half
complete as of June 2014 and is currently approaching its peak. Looking at
the status of offshore facilities, work continues on the manufacture and installation of a subsea production system aswell as the construction of a central processing facility (CPF) and a ﬂoating production, storage and ofﬂoading (FPSO)
facility. Construction of modules foronshore facilities is under way at yards
in China, the Philippines and Thailand.
Onsite work to install the ﬁrst module
was undertaken in 2014 with approximately one-third of all module installation work completed as of June 2015. In
Darwin, progress is being made on theconstruction of LNG, LPG and condensate storage tanks as well as other essential equipment and facilities including
electric power generation systems and13

jetties to accommodate module shipment. Currently, pipe-laying work for the889-km-long gas export pipeline (GEP)
that will connect the Ichthys gas-condensate ﬁeld with onshore facilities in
Darwin is in progress. Following successful completion of the shallow watersection in November 2014, open ocean
work began from February 2015 in conjunction with the drilling of production
wells.

ensuing period, INPEX has continued toengage in engineering, equipment procurement and construction work activities with respect to both onshore andoffshore production facilities.

Surrounding Exploration Blocks
INPEX holds 13 exploration blocks in thevicinity of the Ichthys gas-condensate field
and is currently engaging in exploration
activities. Of this total, evaluation workon the gas already discovered at thethree WA-56-R, WA-281-P, and WA-274-P
blocks is under way. In the event that
substantial amounts of crude oil andnatural gas are confirmed as a result of
this exploration and evaluation activity,
synergies and other effects with the
Ichthys LNG Project are expected tofurther expand business.

2

4

1: FPSO under construction 2: ENSCO5006 drilling rig for a production well 3: Subsea wellhead assembly 4: CPF construction at ﬂoating dock

024

INPEX CORPORATION Annual Report 2015

Contractarea(block)WA-50-L
Timor Sea

WA-51-L

WA-513-P
WA-504-P

WA-341-P

WA-343-P

WA-410-P/
WA-57-R

WA-56-R

WA-56-R

WA-514-P

AC/P36

WA-285-P

WA-494-P

INPEX
Browse, Ltd.
(September 1,
1998)

Under
exploration

IchthysWA-50-L
WA-51-L

Under
exploration

WA-410-P/
WA-57-R(Oil/gas reservoirs
conﬁrmed)

WA-502-P
AUSTRALIA

WA-504-P

Ichthys gas-condensate field

WA-513-P
WA-514-P

Under
exploration

Interest owned(*Operator)
INPEX Ichthys Pty* 62.245%
TOTAL 30.000%
CPC 2.625%
Tokyo Gas 1.575%
Osaka Gas 1.200%
Kansai Electric Power 1.200%
Chubu Electric Power 0.735%
Toho Gas 0.420%
INPEX Browse E&P Pty* 60%
TOTAL 40%
INPEX Browse E&P Pty* 60%
TOTAL 40%
INPEX Browse E&P Pty* 60%
TOTAL 40%

(Oil/gas reservoirs
conﬁrmed)

Under
WA-274-P/ exploration
INPEX Browse(Oil/gas reservoirs
WA-58-R
E&P Pty Ltd
conﬁrmed)(October 21,
Under
2013)
exploration
WA-281-P

WA-494-P
WA-281-P

Under
exploration

Venturecompany(established)
INPEX Ichthys
Pty Ltd(April 5, 2011)

WA-343-P

WA-341-P

WA-502-P

Underdevelopment

WA-285-P

AC/P36

WA-274-P/
WA-58-R

Project status

INPEX Browse E&P Pty* 50%
Murphy 50%
INPEX Browse E&P Pty* 100%
INPEX Browse E&P Pty 20%
Santos* 30% Chevron 50%
INPEX Browse E&P Pty 20.0000%
Santos* 47.8306%
Chevron 24.8300%
Beach 7.3394%
INPEX Browse E&P Pty 20%
Santos* 30% Chevron 50%
INPEX Browse E&P Pty 40%
Santos* 60%
INPEX Browse E&P Pty 40%
Santos* 60%
INPEX Browse E&P Pty 40%
Santos* 60%
INPEX Browse E&P Pty 40%
Santos* 60%

4
Project Overview

5

6

7

8

9

5: Gas export pipeline laying work 6: Onshore gas liquefaction plant under construction 7: CPF module installation work 8: Module of onshore liquefaction plant delivery work 9: Onshore gas liquefaction plant

INPEX CORPORATION Annual Report 2015025

6 Prelude FLNG Project (WA-44-L Block)
In June 2012, we acquired from Shella 17.5% interest in the Prelude FLNG
Project, which is located in WA-44-L,
approximately 475 km north-northeastof Broome, off the coast of Western
Australia. A production, liquefaction
and shipment project using FLNG, thePrelude FLNG Project consists of thePrelude and Concerto gas ﬁelds and willapproximately produce 3.6 million tons
per year of LNG, 400 thousand tons per
year of LPG at peak and approximately
36 thousand barrels per day of condensate at peak.

Shell (the operator) made the FID
on the Prelude FLNG Project, which willbe the world’s ﬁrst FLNG project, in May
2011. Development of the Prelude FLNG
Project is currently under way, with thestart of production targeted at around10 years from when the Prelude Gas

Field was ﬁrst discovered in early 2007.
Through its participation as a project partner in the Prelude FLNG Project,
INPEX is gaining experience and knowledge about FLNG, which it expects toleverage in the Abadi LNG Project inIndonesia.

Contract area (block) Project status Venture company (established)
WA-44-L

Under
development

Interest owned (*Operator)

INPEX Oil & Gas Australia 17.5%
INPEX Oil & Gas Australia Pty Ltd
Shell* 67.5% KOGAS 10.0% CPC(February 28, 2012)
5.0%

Timor Sea

Concerto Gas Field
Prelude Gas Field

WA-44-L

Ichthys Gas-Condensate Field

AUSTRALIA

Gas field
FLNG vessel

7 Tangguh LNG Project (Berau Block)
MI Berau B.V., jointly established by INPEX
and Mitsubishi Corporation, acquired aninterest in the Berau Block in October
2001. In October 2007, MI Berau Japan
Ltd., a joint venture with Mitsubishi Corporation, acquired a stake in KG Berau

Petroleum Ltd., effectively increasing theCompany’s interest to around 7.79% in
the Tangguh LNG Project.
In March 2005, the Indonesian Government approved an extension of the
production sharing contract (PSC) andproject development plans for the Tangguh LNG Project through 2035. Development work commenced thereafter, andthe ﬁrst shipments of LNG began in July
2009.

Papua Province (Indonesia)

Kaimana

Berau BlockGas field
Shipping facility

Contract area
(block)Berau
Tangguh Unit

026

Project status
Venture company(production on the basis of all fields and average rate of FY2014) (established)
Crude oil: 6 Mbbld
In production
Natural gas: 1,027 MMcf/d

INPEX CORPORATION Annual Report 2015

MI Berau B.V.
(August 14, 2001)

Interest owned(*Operator)
Ml Berau 22.856% BP* 48.000％
Nippon Oil Exploration (Berau) 17.144% KG Berau 12.000%

MI Berau 16.30% BP* 37.16% CNOOC 13.90%
Nippon Oil Exploration (Berau) 12.23%
KG Berau, KG Wiriagar 10.00% LNG Japan 7.35% Repsol 3.06%

8 Van Gogh Oil Field, Ravensworth Oil Field and Others
INPEX acquired interests in offshore
Western Australia WA-155-P (Part I) in
July 1999, after which the Van Gogh andRavensworth oil ﬁelds were discovered.
The Australian Government granted production licenses for the above oil ﬁelds as
the WA-35-L and WA-43-L blocks, at which
oil production commenced in Februaryand August of 2010, respectively. The
development of the Coniston Oil Field,
which saddles WA-35-L and WA-55-L, wasstarted in December 2011, and crude oil
production commenced in May 2015.

Indian Ocean

WA-35-L & WA-55-L
Barrow Island
Unitization(Coniston Oil Field)
Van Gogh Oil Field

WA-35-L

WA-155-P（Part II）
WA-155-P（Part I）
Ravensworth Oil Field

WA-43-L

Onslow

AUSTRALIA
ExmouthOil ﬁeld
Van Gogh FPSO vessel

Contract area (block)

Project status(production on the basis of all
fields and average rate of FY2014)

WA-35-L (Van Gogh Oil Field)

In production (Resumed since April 2015)

INPEX Alpha 47.499% Quadrant* 52.501%

In production (Crude oil: 10 Mbbld)

INPEX Alpha 28.500% BHPBP* 39.999% Quadrant 31.501%

WA-43-L (Ravensworth Oil Field)

VentureInterest owned
company(established) (*Operator)

WA-155-P (PartⅠ)

INPEX
Alpha, Ltd.
Under exploration (Oil/gas reservoirs conﬁrmed) (February
Under exploration (Oil/gas reservoirs conﬁrmed) 17, 1989)

WA-155-P (PartⅡ)

Under exploration

WA-35-L & WA-55-L Unitization area (Coniston Oil Field) In production (Since May 2015)
WA-35-L (excluding Van Gogh Oil Field)

INPEX Alpha 47.499% Quadrant* 52.501%
INPEX Alpha 47.499% Quadrant* 52.501%
INPEX Alpha 28.5% Quadrant* 71.5%
INPEX Alpha 18.670% Quadrant* 40.665%
OMV 27.110% JX 7.000% Tap 6.555%

9 Bayu-Undan Project (JPDA03-12 Block) and Kitan Oil Field (JPDA06-105 Block)
The presence of oil was conﬁrmed
through exploration drilling of the Kitan-1
and Kitan-2 wells in March 2008 in the
JPDA06-105 contract area, which INPEX
acquired in January 1992. Thereafter, we

obtained approval for the ﬁnal development plan from the Timor Sea JPDA
authorities in April 2010. After development work, production at the Kitan Oil
Field commenced in October 2011.

Project status
Contract area
Venture company(production on the basis of all(block)(established)fields and average rate of FY2014)

Interest owned(*Operator)

JPDA03-12

INPEX Sahul 19.2458049%
ConocoPhillips* 61.3114766%
Santos 19.4427185%

Bayu-Undan
Unit

In production
Crude oil: 24 Mbbld
Natural gas: 519 MMcf/d
LPG: 14 Mbbld

INPEX Sahul, Ltd.
(March 30, 1993)

Project Overview

In April 1993, INPEX acquired an interestin JPDA03-12, a contract area located in
the Timor Sea JPDA, which is jointly managed by Australia and East Timor. Exploration within this contract area resulted
in the discovery of oil and gas ﬁelds. Of
these, studies revealed that the Undan
structure and the Bayu structure in theadjacent JPDA03-13 contract area were asingle structure. The interest holders unitized both contract areas in 1999, allowing
joint development of the Bayu-Undan
Gas-Condensate Field to proceed. The
commercial production and shipment ofcondensate and LPG started in 2004, and
LNG in February 2006.

4

INPEX Sahul 11.378120%
ConocoPhillips* 56.943372%
Eni 10.985973% Santos 11.494535%
Tokyo Timor Sea Resources(TEPCO/Tokyo Gas) 9.198000%

JPDA06-105
INPEX Timor Sea, Ltd. INPEX Timor Sea 35%
In production (Crude oil: 6 Mbbld)
Repsol 25%(Kitan Oil Field)(November 25, 1991) Eni* 40% Talisman
25%

EAST TIMORINDONESIA
Abadi Gas Field

JPDA06-105 (Kitan Oil Field)
Timor Sea
Joint Petroleum Development Area

Darwin Gas Pipeline
Bayu-Undan Gas-Condensate Field
DarwinAUSTRALIA

Gas field

Oil field

Kitan Oil Field (Production test)

INPEX CORPORATION Annual Report 2015027

Eurasia

The Company’s activities in this region revolve mainly around the ACG projects in Azerbaijan and the Kashagan project in Kazakhstan, large-scale oil projects. The Company
has been aggressively exploring for resources with the acquisition of exploration projects in Greenland and the Far East region of Russia.

1 Offshore North Caspian Sea Contract Area (Kashagan Oil Field and Others)
In September 1998, INPEX acquired aninterest in the Offshore North Caspian
Sea Contract Area in Kazakhstan’s territorial waters. The Offshore North Caspian
Sea Contract Area consists of two blocks:
the East Block is about 4,300 km2 and theWest Block is about 1,275 km2 in area (fora total of about 5,575 km2). The Kashagan Oil Field, which is in the East Block,is located in the Caspian Sea at depths of
3–5 m and is approximately 75 km southeast of Atyrau, Kazakhstan.
Since the ﬁrst exploratory well was
drilled in September 1999, the Kashagan
Oil Field was conﬁrmed in 2000 and commercial discoveries were announced in
2002. After development work, the Kashagan Oil Field began producing crude oilin September 2013, but production was028

suspended due to gas leaks from thepipeline.
Besides the Kashagan ﬁeld, hydrocarbon reserves were also conﬁrmed in fourother structures: Kalamkas, Aktote, Kairan

and Kashagan Southwest. Appraisal ofthese structures is continuing in parallelwith the development of the main Kashagan ﬁeld with a view to expanding thetotal production of the contract area.

Offshore facility

Contract area (block)

Project status

Venture company (established)

Interest owned

Offshore
North Caspian Sea

Production undersuspension

INPEX North Caspian Sea, Ltd.
(August 6, 1998)

INPEX North Caspian Sea 7.56% Eni 16.81% ExxonMobil 16.81%
KMG 16.87% Shell 16.81% TOTAL 16.81% CNPC 8.33%

INPEX CORPORATION Annual Report 2015

2 ACG Oil Fields
INPEX acquired an interest in the
Azeri-Chirag-Gunashli (ACG) Oil Fields
in a region of the south Caspian Sea in
Azerbaijan in April 2003. At the ACG Oil

Offshore production facilities

Fields, oil is being produced at the Chirag, the Central Azeri, the West Azeri, theEast Azeri, the Deepwater Gunashli and
the West Chirag.

Contract
area(block)Project status(production on
Venture company
the basis of all fields(established)
and average rate of FY2014)

ACG

In production(Crude oil: 642 Mbbld)

INPEX Southwest
Caspian Sea, Ltd.
(January 29, 1999)

Interest owned(*Operator)
INPEX Southwest Caspian Sea 10.96%
BP* 35.78% Chevron 11.27% SOCAR 11.65%
Statoil 8.56% ExxonMobil 8.00% TPAO 6.75%
Itochu 4.30% ONGC 2.72%

KAZAKHSTAN
AtyrauRUSSIA

Offshore
North Caspian Sea
Contract Area

Black Sea

4

Caspian Sea

Project Overview

GEORGIA Tbilisi
Baku

ARMENIA
TURKEYAZERBAIJANBTC Pipeline

ACG Oil Fields

CeyhanMediterranean
Sea

IRAN

IRAQ

SYRIA

Oil ﬁeld

3 BTC Pipeline Project
The 1,770-km BTC pipeline stretchesfrom Baku in Azerbaijan on the coast of
the Caspian Sea to Ceyhan in Turkey.
Full-scale operation commenced in June

2006. Total transportation capacity stands
at 1.2 million barrels per day, mainly for
crude oil produced in the ACG Oil Fields
in Azerbaijan.

Contract area
(block)Venture company(established)

Interest owned(*Operator)

BTC Pipeline

INPEX BTC Pipeline 2.50% BP* 30.10%
INPEX BTC Pipeline, Ltd. Azerbaijan (BTC) Limited 25.00% Chevron 8.90% Statoil 8.71%(October 16, 2002)
TPAO 6.53% Eni 5.00% TOTAL 5.00% Itochu 3.40%
ConocoPhillips 2.50% ONGC 2.36%
Shipping terminal

INPEX CORPORATION Annual Report 2015029

Middle East & Africa

In the Middle East, the ADMA Block in Abu Dhabi in the United Arab Emirates and theADCO Block, in which INPEX took up a participating interest from April 2015, are contributing substantially to the Company’s oil production capacity. In Africa, oil production is ongoing at various locations including the Offshore Angola Block 14.

1ADMA Block

Zirku Island

Contract area (block)Umm Shaif, Lower Zakum, Umm Lulu Field, Nasr Field
Upper Zakum Field
Umm Al-Dalkh Field
Satah Field

030

INPEX CORPORATION Annual Report 2015

In May 2004, INPEX made Japan Oil
Development Co., Ltd. (JODCO), a wholly
owned subsidiary by acquiring all of the
JODCO shares held by Japan National Oil
Corporation (at that time) through a shareexchange. JODCO owns an interest in the
ADMA Block located offshore Abu Dhabi
in the United Arab Emirates. Oil production currently spans seven ﬁelds in theblock.
In addition, a number of development
projects are under way to maintain andexpand oil output, such as redevelopmentof the Upper Zakum Oil Field involving the
Project status

Venture company (established)Japan Oil Development Co., Ltd.
In production (JODCO)(February 22, 1973)

use of artiﬁcial islands, as well as Phase 2
development and other work, with theaim of engaging in early production at the
Umm Lulu and Nasr oil ﬁelds.

Satah Field
Das
IslandNasr Field
Umm Shaif Field
Upper Zakum/
Lower Zakum
Field

Zirku Island

Umm Al-Dalkh Field
Umm Lulu Field
Abu Dhabi

U.A.E.

Oil field

Subsea pipeline

Interest owned
JODCO 12.00% ADNOC 60.00% BP 14.67% TOTAL 13.33%
JODCO 12.00% ADNOC 60.00% ExxonMobil 28.00%
JODCO 12.00% ADNOC 88.00%
JODCO 40.00% ADNOC 60.00%

2 ADCO Onshore Concession
Through its wholly owned subsidiary,
Japan Oil Development Co., Ltd.
(JODCO), INPEX acquired a 5% interestin the ADCO Onshore Concession in
Abu Dhabi in April 2015 following its
participation bid. The Company also
concluded a 40-year agreement with
the Supreme Petroleum Council of the
Emirate of Abu Dhabi and Abu Dhabi
National Oil Company (ADNOC) thatcame into effect on January 1, 2015. The

Abu Dhabi

United Arab Emirates

Crude oil pipelines
Oil field in production

Undeveloped oil fields

concession is made up to 15 principal
onshore oil fields in Abu Dhabi of which
11 are currently in production and four
remain undeveloped. Combined, thesefields make up one of the world’s largest
deposits of oil producing 1.6 million
barrels per day. Steps are being taken
to pursue development work with theaim of increasing oil production to 1.8
million barrels per day by 2017.

Contract area (block)

Project status

Venture company (established)

Interest owned

ADCO

In production

JODCO Onshore Limited (April 15, 2015)

JODCO 5%, etc.

Concession agreement signing ceremony held in April 2015

4

Onshore pipeline

Project Overview

3 Offshore Angola Block 14
Participating through a joint venture company with TOTAL S.A., INPEX acquired a
9.99% indirect interest in the oil producing Angola Block 14 in February 2013.
Block 14 is located approximately 100
km offshore from Cabinda, Angola. It isan oil-producing block that includes discovered undeveloped ﬁelds. Crude oil
is currently being produced from threedevelopment areas. At the same time,energies are being channeled toward
the development of certain discovered
undeveloped ﬁelds. In this manner, steps
are being taken to pursue exploration
potential within the block.
CONGO

Offshore Atlantic
Ocean
AngolaThe State ofBlock 14
CabindaProduction facility

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2014)

Offshore Angola
In production (Crude oil: 118 Mbbld)
Block 14

Democratic
Republic of
Congo

ANGOLA

Venture company(established)

Interest owned(*Operator)

Angola Block 14 B.V.
(April 19, 2012)

Angola Block 14 B.V. 20.00% (including 9.99% of INPEX’s interest)
Chevron* 31.00% Sonangol 20.00% Eni 20.00% Galp 9.00%

INPEX CORPORATION Annual Report 2015031

Americas

In Canada, INPEX participates in shale gas projects and others. The Company is also
engaged in a major deepwater exploration project in the U.S. Gulf of Mexico (Lucius),
projects in Venezuela and offshore oil projects in Brazil.

032

INPEX CORPORATION Annual Report 2015

1 Shale Gas Project in Canada
In August 2012, INPEX acquired a 40%
interest in the shale gas projects in theHorn River, Cordova and Liard basins in
British Columbia, Canada, from Nexen Inc.
The shale gas projects in the Horn
River, Cordova and Liard basins containdiscovered and undeveloped shale gas.
We will proceed with development workand are aiming for production of a maximum of 1,250 million cubic feet per day(approximately 200 thousand boed).
The shale gas that is produced will
be converted into LNG with studies
under way to consider commercialization through exports from the Canadianwest coast.

Yukon Territories

Northwest Territories

Acquired area
British Columbia

Highway
Major pipelines

Cordova Area

CANADA

Horn River Area

Liard Area

Project status

Venture company (established)

Interest owned (*Operator)

Horn River,
In production
Cordova and Liard areas (partly)

Contract area (block)

INPEX Gas British Columbia Ltd.
(November 28, 2011)

INPEX Gas British Columbia 40%
Nexen* 60%

4
Project Overview

2

1

3

1: Drilling site 2: Finishing operation 3: Hydraulic fracturing site

INPEX CORPORATION Annual Report 2015033

2 U.S. Gulf of Mexico Projects and Others
In August 2012, INPEX acquired a 7.2%
interest from Anadarko Petroleum Corporation in the Lucius Oil Field in the
deepwater of the Gulf of Mexico. Oiland gas production commenced at the
Lucius Oil Field in January 2015.
We participated in the deepwater exploration blocks of Walker Ridge
95/139 in the Gulf of Mexico in February
2011. In exploratory work since then, theYucatan North-1 exploratory well was
drilled and conﬁrmed the presence of
crude oil in an about 36-m thick sandstone bed formation. We are analyzing
data obtained thus far and are working
with our partners on more exploration
and appraisal activities.

Contract area
(block)Project status
Venture company(production on the basis of all fields and(established)average rate of FY2014)

Blocks 874/875/918/919(Lucius Oil Field)

In production

Ship Shoal Block 72
West Cameron Blocks 401/402
Walker Ridge Blocks 95/139

Crude oil: 6 Mbbld
Natural gas: 5 MMcf/d

In production (Natural gas: 3 MMcf/d)Under exploration(Oil/gas reservoirs conﬁrmed)

Teikoku Oil(North America) Co.,
Ltd. (May 30, 2003)

Cuervito/
Fronterizo
BlocksUNITED STATES

Ship Shoal
Block 72
Walker Ridge
MEXICO
95/139West Cameron Blocks 874/875/918/919
Blocks 401/402 (Lucius Oil Field)

Interest owned(*Operator)
Teikoku Oil (North America) 7.8％ Anadarko* 23.8％ Other 68.4％
Teikoku Oil (North America) 25.0% PetroQuest* 42.5% Other 32.5%
Teikoku Oil (North America) 25.0% PetroQuest* 38.0% Other 37.0%

INPEX Gulf of Mexico
Teikoku Oil (North America) 12.29% Shell* 57.37% Other 30.34%
Co., Ltd. (April 28, 2010)

1

2

3

1,3: Lucius Oil Field 2: Cuervito Block in Mexico034

INPEX CORPORATION Annual Report 2015

3 Copa Macoya and Guarico Oriental Blocks
INPEX was awarded a 100% interest in acentral onshore area, the East Guarico
Block in Venezuela, in July 1992. INPEX
participated in oil and natural gas ﬁeld
rehabilitation, exploration and development activities as an operator. Thereafter,
the existing operational service agreements were changed to joint ventureagreements in 2006. Around the sametime, the East Guarico Block was newly
reconﬁgured into a gas business in the
Copa Macoya Block and a crude oil business in the Guarico Oriental Block. In addition, the agreement period of both agreements was extended to 2026 as a result of
the change to joint venture agreements.
Copa Macoya andGuarico Oriental Blocks

Gas plant

Contract area
(block)Project status
Venture company(production on the basis of all(established)fields and average rate of FY2014)

Copa Macoya

In production
Crude oil: 1 Mbbld
Guarico Oriental Natural gas: 52 MMcf/d

Georgetown

Interest owned(*Operator)

Teikoku Oil and Gas Venezuela*
Teikoku Oil and
70% PDVSA Gas 30%
Gas Venezuela,
C.A. (June 7, 2006) Teikoku Oil and Gas Venezuela 30%
PDVSA CVP* 70%

CaracasBogotaVENEZUELAGUYANA

COLOMBIA

4
Project Overview

4 Brazil (Frade Block, Other)
Frade Japão Petróleo Limitada (FJPL), a
joint venture established by INPEX andSojitz Corporation, acquired an interestin the Frade Block in Brazil’s offshore
Northern Campos basin in July 1999.
Commercial production started inJune 2009. Production was temporarilysuspended in March 2012 due to thepresence of a small oil sheen but safely
resumed at the end of April 2013.

Vitoria

In addition, INPEX is engaging in
joint exploration activities with various
entities including Petróleo Brasileiro
S.A., which serves as project operator, at
the BM-ES-23 concession in the Espírito
Santo Basin offshore Brazil. As a result of

appraisal well drilling conducted from2014 and over 2015, quality oil deposits were discovered at shallower anddeeper depths. Plans are in place toconsider the potential for commercial
production.

BM-ES-23

BRAZIL
Atlantic Ocean

CamposFrade Project

Macae

Oil field

FPSO vessel in the Frade BlockContract
area (block)

Project status
Venture company(production on the basis of all fields and average rate of FY2014) (established)

Frade
Project

In production

BM-ES-23

Under exploration (Oil/gas reservoirs conﬁrmed)

Crude oil: 27 Mbbld
Natural gas: 3 MMcf/dInterest owned(*Operator)

Frade Japão Petróleo
Limitada (FJPL) (July 5, 1999)

Frade Japão Petróleo 18.2609%
Chevron* 51.7391% Petrobras 30.0000%

INPEX Petróleo Santos Ltda. (January 19, 2007)

INPEX Petróleo Santos 15%
Petrobras* 65% PTTEP 20%

INPEX CORPORATION Annual Report 2015035

JapanINPEX is active in the Minami-Nagaoka Gas Field in Niigata Prefecture, one of the largest of its kind in Japan, and participates in other oil and natural gas projects. In addition, the Company operates a domestic trunk pipeline network of approximately 1,400
km. INPEX also commenced operation at Naoetsu LNG Terminal in December 2013.

Yabase Oil Field
Akita Mining Site

Akita Prefecture

Naoetsu
LNG Terminal

Sekihara Gas Field(underground storage)
Niigatat CityyNiigata Marketing
OfficeToyama Line (Under construction)

T y ma
Toya
Citty
C

Minami-Aga Oil Field

Kashiwazaki
Cityy
Ci

ItoigawagCityy

Minami-Kuwayama Oil Field
Naga
ga
aok
oka Ci
City

Joe
Joet
oet
ettsu
uC
City
ity
y

ToyamaPrefecture

Shin Oumi Line

Domestic
Natural Gas

Niigata
Prefecture

Tokyo Line

Gunma Prefecture

Fujioka BS*

Shin Tokyo Line
Karu
Ka
ru
uiz
izaw
zawa
To
Town

NaganoPrefecture

Chino
Chin
oC
Ciity
ty

Kofu Line

ShizuokaPrefecture

Second Suruga Trunk Line
Sodeshi LNG Terminal[Shizuoka Gas]San
no City
City
Kono
onosu
n
Cityy

Iruma Line

Show
Sho
S
how
ho
wa
Town
Town
ow
w
Ome
Om
e Cityityty

Shizuoka Line

Fuji Cit
Ci y

Oil and gas fields

SaitamaPrefecture

Regasified
LNG

Technical Research Center

Chiba
Prefecture

Natural gas
pipeline network

Head Office(Akasaka, Minato-ku)* BS・・・Booster station

Chiba Ciity(Kitakarasuyama, Setagaya-ku)
S
Samm
Sam
Sa
uC
City

Itazuma Power Control Center

Other projectO

Adachi-ku,
u, Tokyo
T kyo

Metropolitan
Tokyo(INPEX, Shizuoka Gas, Tokyo Gas)

Tochigi
Prefecture

Ryomo Line

H oC
Honj
Hon
Cityy

Gotemb
Gotemba
Got
Gote
mba
ba
City
t

Minamifuji Line

Isesaki Power Control CenterTomiTom oka
a
City
Cit
C
ity

Yamanashi
PrefectureShizSh
h zuokaok Cittyoka(Minami-Nagaoka Gas Field, etc.)

Tomi BS*

Mats
M
ats
t umot
ts
umo
um
u
mo
moto Ciity

Matsumoto Line

Natural Gas Businessin JapanDomestic Natural Gas /Regasified LNG

Nagan
Nagan
Naga
no
o Cityy

Major office or mining site

Naruto Gas Field
Chiba Mining Site

0

100 kmNatural Gas Business in Japan
In its natural gas business in Japan, thenatural gas produced from the Company-held Minami-Nagaoka Gas Field(Niigata Prefecture) as well as the LNG
and other products received at the
Naoetsu LNG Terminal (Niigata Prefec-

036

INPEX CORPORATION Annual Report 2015ture), which commenced operations in
December 2013, are transported througha trunk pipeline network of approximately 1,400 km stretching across the
Kanto and Koshinetsu regions, and soldto customers including city gas compa-

nies and large-scale plants along the
aforementioned network.
INPEX has experienced steady
growth in sales of natural gas volume due
to sharp rises in the prices of competing
fuels, as well as the highly environmentallyfriendly attributes of natural gas. In addition to its role as a fuel for thermal energy,
natural gas is expected to be used for awide variety of applications, such as afuel for onsite power generation andco-generation, as well as a raw material
for chemical products. INPEX targets
annual sales of 2.5 billion m3 by the early2020s and as much as 3.0 billion m3 overthe long term.
To achieve these targets, INPEX
is advancing construction work on the
Toyama Line (extending from Itoigawa
City, Niigata Prefecture, to Toyama City,
Toyama Prefecture) with a view to completion in mid-2016. In the lead-up to
the full deregulation of electric power
retail sales in April 2016, the Company
has at the same time commenced steps
to consider new initiatives with respect toelectric power business activities with theaim of collaborating with various parties

including city gas companies along its
network.
At the Naruto Gas Field in Chiba
Prefecture, natural gas is being produced from water-soluble gas ﬁelds.
After extracting natural gas from underground water (brine water), the brinewater is used to produce iodine, whichis exported to Europe, the United Statesand elsewhere.

MitsukeCity

Echigo Line

Sekihara Gas Field(underground(underground storage)
storage)
Sea ofJapan

Shinetsu
HonsenNagaokaCity

JoetsuShinkansen
Line

Kashiwazaki City

Minami-Nagaoka
Gas Field
Gas ﬁeld

Ojiya City

Joetsu Line

Natural Gas Sales Volume in Japan(100 million Nm3/year) Note: 41.86MJ per 1m3

17.2

17.6

17.5

18.0

17.9

2011/3

2012/3

2013/3

2014/3

2015/3Natural gas pipeline that crosses a river(Shibumi River, Niigata Prefecture)

Renewable Energy and Other Initiatives
Power Generation Business in Japan

Geothermal Development
Geothermal power is the generationof electricity with turbines poweredby steam produced from the thermalenergy of magma underground.
Since 2011, INPEX and Idemitsu
Kosan Co., Ltd., have been jointly conducting geothermal surveys in the
Amemasudake region of Hokkaido Prefecture and the Oyasu region of Akita

Prefecture. The two companies werejoined by Mitsui Oil Exploration Co., Ltd.,in 2012, and drilling of one survey wellin the Amemasudake region and two
survey wells in the Oyasu region commenced during 2013. In 2014, the drilling of three survey wells was undertaken
across the two regions. We plan to continue conducting geothermal resource
surveys by drilling survey wells of a similar scale in both of these regions going
forward. In addition, INPEX is a member of the geothermal resource survey
group in Fukushima Prefecture and has
been conducting land surveys in areas
surrounding Mt. Bandaisan since September 2013.
Moreover, INPEX took steps to participate in the Sarulla Geothermal Independent Power Producer (IPP) Projectin Indonesia from June 2015. The project involves constructing a geothermal
power plant with a maximum capacityof 330 MW in the Sarulla Geothermal
Field located in North Sumatra Province, and providing generated power toIndonesia’s government-owned electricity company over a period of 30 years.
Construction of the power generation
plant began in 2014. Energies are being
channeled toward the progressive startof commercial operations from 2016.

4
Project Overview

In March 2013, the Company began generating electricity at INPEX Mega Solar
Joetsu, a solar power plant with a maximum output of 2 MW, located on the former site of an oil reﬁnery that it shut down
in Joetsu City, Niigata Prefecture. In 2014,
steps were taken to construct a new solar
power plant with output of 2 MW next tothis site. Power generation began from
July 2015. We estimate that these twosolar power plants will generate around
5,330,000 kWh annually, enough electricity to power 1,600 homes.
In addition, INPEX constructed ahigh-efﬁciency gas turbine combined
cycle thermal power plant with output of
about 55,000 kW next to its Koshijihara
plant in Niigata Prefecture, and has been
supplying electricity on a wholesalebasis to power producers and suppliers(PPS) since May 2007.

Sarulla Geothermal Independent Power Producer (IPP) Project

Research of Methane Hydrate
Resource in Japan

A type of unconventional natural gas,methane hydrate is a solid crystal structure with methane trapped inside.
Deposits of methane hydrate have been
conﬁrmed along the coastline of Japan,
but its extraction is technologically challenging. Experts have said that moretime is needed to develop economically
viable technologies.
INPEX participates in research andsurvey activities as do related committees led by the national government.
Leveraging its technologies accumulated
in upstream operations, INPEX has been
contributing to solving the technological challenges for extracting methane
hydrate, especially in the ﬁeld of subsea
production equipment.

INPEX CORPORATION Annual Report 2015037