S e g m e n t O v e r v ie w

A s ia &O c e a n ia
22

3 7

Preparation for development

1

6

1
2
1

1,218

1,245

1,296

Under development

4

12

N u m b e r o f p r o je c t s
In production. 2 2

Under exploration

4

1,117

5
1,551

N u m b e r o f c o u n t r ie s

up

. 1 6

1,145

up

E u r a s ia

14

INPEX CORPORATA ION Annual Report 2017
AT

33
60,192
12,113188
32
66,852
13,832

197
27

191

2017

2012

2013

2014

2015

218,099

94,05032,228

2017

26

2016

2014

96,34142,601

190

188

162

2016

25

2015

2017

2013

85,541
41,752

2014

2016

25
2013

2015

2012

84,32547,076

2012

178,225

Operating income (¥ million)

2017

51,566

485,069

Net sales (¥ million)

185

485,275
281,623

299,599

N e t s a le s / O p e r a t in g in c o m e

2016302,8712015

97,204166

2014

409,776

167

2013

Net production (thousand BOED)

264,849179

2012

483,187

Proved reserves (million BOE)

201

R e s e r v e s / P r o d u c t io n

242

Other

M id d le E a s t&A f r ic a

up

. 2 6

. 2 8

9

6

5

7

1

1

1 5

Minami-Nagaoka
Gas Field
Naoetsu LNG
Terminal
Natural gas
pipeline network(Approx. 1,500 km)
etc.

9

783

857

2

1,778

6

up

. 2 4

1,742

up

J a p a n

A m e r ic a s

28

140

26

153

163
25

2014

2015

2016

2017

129,522

174
27

2016

2013

120,268
22,771

2015

29

11,290（9,361）

2014

2012

118,937
28,56813,727（14,002）2013

28

13,351（15,303）

2012

2017

113,662
24,607

23
36
2016

28
27

21
2015

11,435（7,646）

74

20
2014

5,945
（6,089）

65

17
2013

5,525
（5,518）

68

18
36
2012

2012

2013

2014

2015

2017

2016

102,660
18,034

109,6012017

12,096

2016

16,693482,182

516,513276,870

524,52820152017

290,866

2014

333,213357,3432013

421,184

354,136
2012

2016

130

2015

138

169

2014

621,513

168

248

270

505
158
2013

520,835155
2012

500,033

Project Overview

518

4

2017

INPEX CORPORATA ION Annual Report 2017AT

15

P r o je c t O v e r v ie w

b y R e g io n

A s ia &O c e a n ia
In the Asia and Oceania region, INPEX holds participating interests in the Offf shore Mahakam
ff
Block in Indonesia, which is contributing signiﬁcantly to earnings, and the large-scale Ichthys
and Abadi LNG projects, where development and preparatory development activities areunder way as the operator. The Company is also actively advancing more than 20 exploration
projects with growth potential across the region.

16

INPEX CORPORATA ION Annual Report 2017AT

1

O ﬀ s h o re M a h a k a m

B lo c k a n d A t t a k a U n it

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. Production of crude oil and natural gas has
continued since 1972. INPEX farmedout 50% of its interest in the Offshore
Mahakam Block to CFP (now TOTAL) in
July 1970. This venture subsequently
made a series of discoveries in theContract area
(block)Offshore Mahakam
Attaka Unit

Bekapai (oil), Handil (oil), Tambora (oiland gas), Tunu (gas), Peciko (gas), Sisi
and Nubi (gas) ﬁelds, as well as theSouth Mahakam Gas Fields (gas), eachof which has continued to produce
crude oil and natural gas. The crude
oil and condensate produced fromthese ﬁelds are shipped mainly to oil
reﬁneries and power companies inJapan by tanker from the Santan andSenipah terminals. Most of the natural
gas is supplied to the Bontang LNG
Plant, and then shipped as LNG to customers in Japan and elsewhere.
The Offshore Mahakam Block has
begun to see output decline after more

Project status(production on the basis of all fields and average rate of FY2016)
In production

Crude oil: 68 Mbbld
Natural gas: 1,362 MMcf/d
LPG: 7 Mbbld

than 40 years of production. In 2012,
impediments at production wells led
to a large drop in output, in addition tonatural attrition. Thereafter, successful
steps were taken to control the decline
in production by advancing efforts tocounter sand problems and accelerate the pace at which the Company
undertakes development well drilling.
Despite these endeavors, production
is still expected to decrease graduallyin the future. INPEX has been in discussions with Pertamina and TOTAL
concerning Participation in the block
after 2018.

Venture company(established)

Interest owned(*Operator)

INPEX CORPORATIONINPEX 50% TOTAL* 50%(February 21, 1966)

Bontang LNG Plant

INPEX 50% Chevron* 50%

Attaka Unit

Santan Terminal

Attaka Field

Badak Field
Nilam Field

4

Tunu Field

Project Overview

Tambora Field

Sisi Field

Handil Field

Nubi Field

Senipah Terminal

Bekapai Field

Balikpapan

Peciko Field

Offshore
MahakamBlock

INDONESIASouth Mahakam Fields
Gas field

Oil field

Oil and gas field

1

2

1: Booster station 2: Offshore platform during well drilling work

INPEX CORPORATION Annual Report 201717

S e b u k u B lo c k R u b y G a s F ie ld

2Offshore production facility in the Ruby Gas Field

3

In September 2010, INPEX obtained
a 15% interest in the Sebuku Block off
the shore of South Makassar, Indonesia. Thereafter, work began to develop
the Ruby Gas Field in the block, andproduction of 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 thenmainly sent via inland pipeline to a fertilizer plant in East Kalimantan.

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2016)

SebukuIn production (Natural gas: 77 MMcf/d)

A b a d i L N G

Bontang LNG Plant
Santan Terminal

Fertilizer plant
Attaka Field
Tunu Field

Senipah Terminal
Peciko Field

Balikpapan

South Mahakam Field

Kalimantan

Makassar Strait

INDONESIA

Sebuku BlockGas field
Oil field

Sulaewesi

Ruby Gas Field

Venture company(established)

Interest owned(*Operator)

INPEX South Makassar, Ltd.

INPEX South Makassar 15％
PEARL OIL (Sebuku) Ltd.* 70% TOTAL 15%(May 17, 2010)

P r o je c t

INPEX acquired a 100% interest in
the Masela Block in November 1998
through an open bid conducted by theIndonesian government and subsequently went about exploratory activities as the operator, discovering theAbadi Gas Field through the ﬁrst exploratory well drilled in 2000. The Company
subsequently drilled two appraisal
wells in 2002 and four in 2007–2008, allof which conﬁrmed the presence of gas
and condensate reservoirs.
In December 2010, Indonesianauthorities approved the initial planof development (POD-1) deploying
a floating LNG (FLNG) plant with anannual processing capacity of 2.5
million tons, and from November 2012
to November 2014, INPEX undertook
SURF (subsea, umbilical, riser andflowline) and FLNG FEED work.
INPEX drilled three more appraisal
wells in 2013 and 2014 with theaim of expanding the volume ofrecoverable reserves, confirming agreater volume of natural gas reserves
that were certified by the Indonesianauthorities. Having revised its concept

selection studies to factor in thisincreased volume of reserves, INPEX
decided it would be optimal to center
development on a large-scale FLNG.
The Company submitted a revisedplan for the development based on
an FLNG plant with an annual LNG
processing capacity of 7.5 million
tons to the Indonesian authorities
in September 2015. In April 2016,
however, the Company received
a notification from the Indonesianauthorities instructing it to re-proposea plan of development based on
onshore LNG. The Company‘s policyof aiming for the early start-up of
development and implementing the
project in the most economically andtechnically rational way in alignment
with the policies of the Indonesian
government remains unchanged. In
accordance with this policy, based on
the constructive discussions with theIndonesian government regarding thedevelopment of the project based on
an onshore LNG development scheme,
INPEX has begun preparations for thecommencement of Pre-FEED work.

Contract area (block)

Project status

Venture company (established) Interest owned (*Operator)

MaselaPreparation fordevelopment

INPEX Masela, Ltd.
(December 2, 1998)

INDONESIA

Abadi Gas Field

Arafura Sea

AUSTRALIA

Timor Sea

DarwinGas field

INPEX Masela* 65%
Shell 35％
Drillship for the Abadi LNG Project

18

INPEX CORPORATION Annual Report 2017

4

T h e Ic h th y s L N G

P r o je c t a n d S u r r o u n d in g B lo c k s

Status of Development WorkRegarding the status of offshore facilities, construction work has ﬁnished
on a oating central processing facility(CPF) and a oating production, storage and of oading (FPSO) facility. A
naming ceremony for the facilities washeld in the South Korean shipyards in
February 2017, naming the CPF “Ichthys Explorer” and the FPSO “Ichthys
Venturer.” At the end of April 2017, the
CPF sailed away from the South Korean
shipyard following the completion ofcommissioning and preparation work,
arrived at the Ichthys gas-condensate
ﬁeld at the end of May, and mooring
was completed in late June. Plans callfor the FPSO to set sail for the projectsite soon. In other offshore-related
work, installation work was ﬁnishedin January 2017 on almost all of thesubsea infrastructure and equipment
needed to produce natural gas andcondensate. The drilling of production
wells is ongoing. With regard to theonshore LNG plant, INPEX has basically ﬁnished construction work on themain facilities and is currently carryingout connection work for the delivered
and installed modules, as well as ismaking steady progress with commissioning. Looking ahead at the production schedule, installation and commissioning work will be undertaken
and production from the wellhead
will commence. Thereafter, the Ichthys
LNG Project will, during the current
ﬁscal year (ending March 31, 2018),
begin production of condensate, liqueﬁed natural gas (LNG) and liqueﬁed
Interest owned(*Operator)

Contract area Project status(block)Venture company(established)

WA-50-L
WA-51-L

INPEX Ichthys Pty. Ltd. INPEX Ichthys Pty* 62.245%
TOTAL 30.000% CPC 2.625%(April 5, 2011)
Tokyo Gas 1.575% Osaka Gas 1.200%
Kansai Electric Power 1.200%
JERA 0.735%
Toho Gas 0.420%
INPEX Browse E&P Pty* 60% TOTAL 40%

WA-285-P

Under development

Under exploration

WA-343-P

AC/P36
WA-494-P
WA-274-P
WA-58-R
WA-74-R
WA-281-P

Under exploration(Oil/gas reservoirs conﬁrmed)

Under exploration

Under exploration(Oil/gas reservoirs conﬁrmed)

WA-57-R
WA-502-P
WA-504-P
WA-513-P
WA-514-P

Under exploration
Under exploration(Oil/gas reservoirs conﬁrmed)

INPEX Browse
E&P Pty. Ltd.
(October 21, 2013)

Surrounding Exploration Blocks
INPEX holds 14 exploration blocks inthe vicinity of the Ichthys gas-condensate ﬁeld and is currently engaging
in exploration activities. Of this total,
exploration work has led to the discovery of gas at eight blocks (WA-56-R,
WA-57-R, WA-58-R, WA-74-R, WA-281-P,
WA-274-P, WA-513-P, and WA-514-P).
Evaluation work is now being performed on these discoveries. In theevent that substantial amounts of crude
oil and natural gas are conﬁrmed as aresult of this exploration and evaluation
activity, synergies and other effects with
the Ichthys LNG Project are expected tofurther expand business.

Timor Sea

WA-513-P
WA-504-P

WA-274-P

WA-502-P

INPEX Browse E&P Pty* 50% Murphy 50%
INPEX Browse E&P Pty* 100%

WA-514-P

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%

Naming ceremony of FPSO Ichthys Venturer

WA-343-P

WA-57-R

INPEX Browse E&P Pty* 60% TOTAL 40%

INPEX Browse E&P Pty 20%
Santos* 30%
Chevron 50%

AC/P36

WA-58-R

WA-281-P

4

WA-74-R
WA-56-R

Project Overview

WA-56-R

petroleum gas (LPG) in sequence andthen ship these products.

WA-285-P
WA-494-P
IchthysWA-50-L
WA-51-L

Ichthys gas-condensate field

AUSTRALIACPF Ichthys Explorer after arriving at Ichthys gas-condensate ﬁeld

INPEX CORPORATION Annual Report 201719

P r e lu d e F L N G

5

P r o je c t (W A - 4 4 - L )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 andwill approximately produce 3.6 million tons per year of LNG, 400 thousand tons per year of LPG at peak andapproximately 36 thousand barrels
per day of condensate at peak.

Shell (the operator) made the FID
on the Prelude FLNG Project in May
2011. Development of the Prelude
FLNG Project is currently under way. The
Project is expected to begin contributing to the campany’s ﬁnancial performance, including its cash ow, in 2018.

Timor Sea

Concerto Gas Field

WA-44-L

Prelude Gas Field

Ichthys
Gas-Condensate Field

AUSTRALIA

Gas field

The Prelude FLNG sail away

Contract area (block) Project status
WA-44-L

6

Under development

T a n g g u h L N G

Venture company (established)

Interest owned (*Operator)

INPEX Oil & Gas Australia Pty. Ltd. (February 28, 2012)

INPEX Oil & Gas Australia 17.5%
Shell* 67.5% KOGAS 10.0% OPIC 5.0%

P r o je c t (B e r a u B lo c k )MI Berau B.V., jointly established by
INPEX and Mitsubishi Corporation,acquired an interest in the Berau Blockin October 2001. In October 2007, MI
Berau Japan Ltd., a joint venture with
Mitsubishi Corporation, acquired astake in KG Berau Petroleum Ltd., effectively increasing the Company’s interest to around 7.79% in the Tangguh

LNG Project.
In March 2005, the Indonesian
Government approved an extensionof the production sharing contract(PSC) and project development plans
for the Tangguh LNG Project through2035. Development work commenced
thereafter, and the first shipments of
LNG began in July 2009.

The FID for expanding the Tangguh
LNG Project was announced in July
2016. The Tangguh Expansion Projectwill add a third LNG process train with
3.8 million tons per annum (mtpa) ofproduction capacity to the existing
two trains with 7.6 mtpa of production
capacity. Plans call for production tocommence in 2020.
Papua Province (Indonesia)

Berau BlockGas field
Shipping facility

Venture company Interest owned
Contract area Project status(block)(production on the basis of all fields and average rate of FY2016) (established)(*Operator)
Berau
Tangguh
Unit

20

Crude oil: 6 Mbbld
In production
Natural gas: 1,023 MMcf/d

INPEX CORPORATION Annual Report 2017

Ml Berau 22.856% BP* 48.000％
Nippon Oil Exploration (Berau) 17.144% KG Berau 12.000%
MI Berau B.V.
MI Berau 16.30％ *BP 40.22% CNOOC 13.90％(August 14, 2001)
Nippon Oil Exploration (Berau) 12.23% KG Berau 8.56%
LNG Japan 7.35% KG Wiriagar 1.44%

V a n G o g h O il F ie ld , R a v e n s w o r t h O il F ie ld a n d O t h e r s

7

INPEX acquired interests in offshore
Western Australia WA-155-P (PartI) in July 1999, after which the Van
Gogh and Ravensworth oil fields werediscovered. The Australian Government
granted production licenses for theabove oil fields as the WA-35-L andWA-43-L blocks, at which oil productioncommenced in February and August of
2010, respectively. The development of
the Coniston Oil Field, which saddles
WA-35-L and WA-55-L, was started
in December 2011, and crude oil
production commenced in May 2015.
Van Gogh FPSO vessel

Project status
Venture(production on the basis of allcompany
fields and average rate of FY2016) (established)

Contract area (block)WA-35-L(Van Gogh Oil Field)

WA-43-L(Ravensworth Oil Field)

In production (Crude oil: 6 Mbbld)

INPEX
Alpha, Ltd.
(February17, 1989)

Under exploration

Indian Ocean

WA-35-L & WA-55-L
Unitization
Van Gogh Oil Field

INPEX Alpha 47.499%
Quadrant* 52.501%
INPEX Alpha 28.500%
BHPBP* 39.999%
Quadrant 31.501%
INPEX Alpha 18.670%
Quadrant* 40.665%
OMV 27.110% JX 7.000%
Tap 6.555%

Barrow Island

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

WA-43-L
Exmouth

Onslow

AUSTRALIA

Oil ﬁeld

4
Project Overview

8

WA-155-P (PartⅡ)

INPEX Alpha 47.499%
Quadrant* 52.501%

In production (Crude oil: 10 Mbbld)

WA-35-L & WA-55-L
Unitization area

Interest owned(*Operator)

B a y u - U n d a n P r o je c t (J P D A 0 3 - 1 2 )In April 1993, INPEX acquired aninterest in JPDA03-12, a contract area
located in the Timor Sea JPDA, which
is jointly managed by Australia andEast Timor. Exploration within thiscontract area resulted in the discovery

EAST TIMOR

of oil and gas ﬁelds. Of these, studies revealed that the Undan structure
and the Bayu structure in the adjacent
JPDA03-13 contract area were a single
structure. The interest holders unitizedboth contract areas in 1999, allowing

joint development of the Bayu-Undan
Gas-Condensate Field to proceed.
The commercial production and shipment of condensate and LPG started
in 2004 and LNG in February 2006.

INDONESIA
Abadi Gas Field
Timor Sea
Joint Petroleum Development Area

Darwin Gas Pipeline
Bayu-Undan
Gas-Condensate Field

DarwinAUSTRALIA

Gas field

Oil field
Bayu-Undan offshore facility

Project status
Contract area
(production on the basis of all(block)fields and average rate of FY2016)
JPDA03-12
Bayu-Undan
Unit

In production

Crude oil: 20 Mbbld
Natural gas: 561 MMcf/d
LPG: 13 Mbbld

Venture company Interest owned(established)(*Operator)
INPEX Sahul, Ltd.
(March 30, 1993)

INPEX Sahul 19.2458049% ConocoPhillips* 61.3114766% Santos 19.4427185%
INPEX Sahul 11.378120% ConocoPhillips* 56.943372% Eni 10.985973%
Santos 11.494535% Tokyo Timor Sea Resources (JERA / Tokyo Gas) 9.198000%

INPEX CORPORATION Annual Report 201721

E u r a s ia
In the Eurasia region, INPEX has large-scale crude oil projects in Azerbaijan (ACG) andKazakhstan (Kashagan). Having acquired exploration projects in the Far East region of Russia,
the Company has partially transitioned to the development and production stages.

1

O ﬀ s h o r e N o r t h C a s p ia n S e a C o n t r a c t A r e a (K a s h a g a n O il F ie ld a n d O t h e r s )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 the West Block is about 1,275 km2
in area (for a 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, theKashagan Oil Field was conﬁrmed in2000 and commercial discoveries wereannounced in 2002. After development
work, the Kashagan Oil Field began

22

producing crude oil in September 2013.
Production was temporarily halted due
to a pipeline gas leak, but production
resumed shortly thereafter. Shipmentsof crude oil commenced in October
2016. Besides the Kashagan ﬁeld, thepresence of hydrocarbon reserves

was also conﬁrmed in the surrounding
Kalamkas, Aktote and Kairan structures.
Appraisal of these three structures is
continuing in parallel with the development of the main Kashagan ﬁeld with aview to expanding the total productionof the contract area.

Offshore facility

Contract area (block)

Project status (production on the basis of
Venture company (established) Interest owned
all fields and average rate of FY2016)

Offshore
North Caspian Sea

In production

Crude oil: 55 Mbbld
Natural gas: 96 MMcf/d

INPEX CORPORATION Annual Report 2017

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%

A C G2

O il F ie ld s
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 Fields, oil is being produced at
the Chirag, the Central Azeri, the West
Azeri, the East Azeri, the Deepwater
Gunashli and the West Chirag.

Contract
area(block)Project status(production on
Venture company(established)
the basis of all fields
and average rate of FY2016)

ACG

In production(Crude oil: 609 Mbbld)

Offshore production facilities

Interest owned(*Operator)

INPEX Southwest Caspian Sea 10.96%
INPEX Southwest
BP* 35.78% Chevron 11.27% SOCAR 11.65%
Caspian Sea, Ltd.
Statoil 8.56% ExxonMobil 8.00% TPAO 6.75%(January 29, 1999)
Itochu 4.30% ONGC 2.72%

KAZAKHSTAN
AtyrauRUSSIA

Offshore
North Caspian Sea
Contract Area

GEORGIA

Project Overview

Black Sea

4

Caspian Sea

Tbilisi

Baku

ARMENIA
TURKEYAZERBAIJANBTC Pipeline

ACG Oil Fields

Ceyhan3

Mediterranean
Sea

SYRIA

IRAN

IRAQ

Oil ﬁeld

B T C P ip e lin e P r o je c t
The 1,770-km BTC pipeline stretchesfrom Baku in Azerbaijan on the coastof the Caspian Sea to Ceyhan in Turkey.
Full-scale operation commenced inJune 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, Ltd.
(October 16, 2002)

INPEX BTC Pipeline 2.50% BP* 30.10%
Azerbaijan (BTC) Limited 25.00% Chevron 8.90%
Statoil 8.71% TPAO 6.53% Eni 5.00% TOTAL 5.00%
Itochu 3.40% CIECO 2.50% ONGC 2.36%

Shipping terminal

INPEX CORPORATION Annual Report 201723

M id d le E a s t &A f r ic a
In the Middle East, the ADMA Block offshore Abu Dhabi in the United Arab Emirates and theonshore ADCO Block, in which INPEX acquired a participating interest from April 2015, arecontributing substantially to the Company’s oil production capacity. In Africa, oil production
is ongoing at various locations including the Offshore Angola Block 14.

1

A D M A B lo c k

Zirku Island

Contract area (block)

In May 2004, INPEX made Japan Oil
Development Co., Ltd. (JODCO), a
wholly owned subsidiary by acquiring all of the JODCO shares held byJapan National Oil Corporation (atthat time) through a share exchange.
JODCO owns an interest in the ADMA
Block located offshore Abu Dhabi in the
United Arab Emirates. Oil production
currently spans seven ﬁelds in the block.
In addition, a number ofdevelopment projects are under way
to maintain and expand oil output,
such as redevelopment of the Upper
Zakum Oil Field involving the use of

Project status

Venture company (established)

In production

Japan Oil Development Co., Ltd.
(JODCO)(February 22, 1973)

Umm Shaif Field, Lower Zakum Field,
Umm Lulu Field, Nasr Field
Upper Zakum Field
Umm Al-Dalkh Field
Satah Field

24

INPEX CORPORATION Annual Report 2017

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

Satah Field
Das
IslandNasr Field
Umm Shaif Field

Zirku Island

Upper Zakum/
Lower Zakum
Field

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%

A D C O

2

O n s h o r e C o n c e s s io n
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)

Abu Dhabi

United Arab Emirates

Crude oil pipelines
Oil fields in production

Undeveloped oil fields

that came into effect on January 1,
2015. The concession is one of theworld’s largest deposits of oil and ismade up of 15 principal onshore oilfields in Abu Dhabi of which 11 arecurrently in production and four remain
undeveloped. Steps are being taken to
pursue development work with the aimof increasing oil production capacity to
1.8 million barrels per day.

Contract area (block)

Project status

Venture company (established) Interest owned

ADCO

In production

JODCO Onshore Limited(April 15, 2015)

JODCO 5% ADNOC 60%
TOTAL 10% BP 10% CNPC 8%
CEFC 4 % GS 3%

4
Onshore pipeline

Project Overview

3

Concession agreement signing ceremony held in April 2015

A n g o la B lo c k 1 4
Participating through a joint venturecompany with TOTAL S.A., INPEX
acquired a 9.99% indirect interest in
the oil-producing Angola Block 14 in
February 2013. Located approximately
100 km offshore from Cabinda,
Angola, Block 14 includes discovered
and undeveloped fields. Crude oil iscurrently being produced from fourdevelopment areas, and steps arebeing taken to pursue exploration
potential within the block.
CONGO

AngolaBlock 14

Production facility

Contract area
(block)Project status
Venture company(production on the basis of all fields and average rate of FY2016) (established)

Offshore
In production (Crude oil: 104 Mbbld)
Angola Block 14

Atlantic
Ocean
The State ofCabinda

Democratic
Republic of
Congo

ANGOLA

Interest owned(*Operator)

Angola Block 14 B.V. Angola Block 14 B.V. 20.00% (including 9.99% of INPEX’s interest)(April 19, 2012)
Chevron* 31.00% Sonangol 20.00% Eni 20.00% Galp 9.00%

INPEX CORPORATION Annual Report 201725

A m e r ic a s
In Canada, INPEX participates in shale gas projects and others. The Company is also engaged
in projects including a major deepwater exploration project in the U.S. Gulf of Mexico (Lucius)and off
f shore oil projects in Brazil.
ff

26

INPEX CORPORATA ION Annual Report 2017ATS h a le G a s P r o je c t in C a n a d a

1

In August 2012, INPEX acquired a 40%
interest in the shale gas projects in theHorn River, Cordova and Liard basinsin British Columbia, Canada, from
Nexen Inc.
Some production is under way,and INPEX is examining whether toperform more development work andimplement studies to consider commercialization to export shale gas as
LNG from the Canadian west coast.

Shale Gas Project
British Columbia
CANADA
Prince Rupert

Edmonton

Calgary

VancouverInterest owned (*Operator)

Contract area (block)

Project status

VentureV
Ve
nture company (estaestablished)

Horn River,r Cordova and Liard areasr,

In production (partpartlyr ly)rt

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

Oil field
INPEX Gas British Columbia 40% Nexen*
60%

G u lf o f M e x ic o P r o je c t s a n d O t h e r s

2

Energía de Mexico, S de R.L. de C.V.

In August 2012, INPEX joined the
deepwater Lucius Oil Field in the Gulf
of Mexico and acquired a 7.2% interest
from U.S.-based Anadarko Petroleum
Corporation. Oil and gas production
at the Lucius Oil Field has proceeded
steadily since its commencement inJanuary 2015.
In December 2016, INPEX, Chevron(Chevron) and Pemex Exploración yProducción (Pemex) made a successful

joint bid for the first round of deepwater
exploration of Block 3 located in the
Perdido Fold Belt in the Mexican sectorof the northern Gulf of Mexico. INPEX
holds a 33.3333% participating interest,and is conducting exploration activities.

Contract area
(block)Project status(production on the basis of all fields andaverage rate of FY2016)

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

In production

Mexican sector of the northern
Gulf of Mexico Block 3

Under exploration

Crude oil: 73 Mbbld
Natural gas: 75 MMcf/d

Cuervito/
Fronterizo
BlocksUNITED STATES

Ship Shoal
Block 72
Walker Ridge 95

MEXICO

Block 3Blocks 874/875/918/919(Lucius Oil Field)

VentureVVe
ntu company(esta
established)

Interest owned(*Operator)

TeikokuTTe
iko Oil (North America)
Co., L
Ltd. (May 30, 2003)

Teikoku Oil (North America) 7.8％
Anadarko* 23.8％ Other 68.4％

INPEX
INPE E&P Mexico S.A. de C.V.

INPEX E&P Mexico 33.3333% Chevron* 33.3334%
Pemex 33.3333%(Janu
January 25, 2017)

4
Project Overview

3

アメリカ合衆国B r a z il (F r a d e P r o je c t a n d O t h e r s )A joint venture established by INPEXand Sojitz Corporation, Frade Japão
Petróleo Limitada (FJPL) acquired aninterest in the Frade Project in Brazil’s
offshore Northern Campos basin in July
1999. Commercial production started
in June 2009. Crude oil production
was temporarily suspended in March2012 due to the presence of a small oil
sheen but safely resumed at the endof April 2013.
Having also acquired a 15% inter-

est in the BM-ES-23 concession in the
Espírito Santo Basin off the southeast
coast of Brazil in February 2010, theCompany is advancing exploration
activities together with other companies, including the operator, Petrobras.
The presence of quality oil and gas
deposits has been conﬁrmed at thesame concession as a result of exploratory and appraisal well drilling. Evaluation work continues.

Contract
area (block)

Project status
Venture company(production on the basis of all fields and average rate of FY2016) (established)

Frade
Project

In production

BM-ES-23

Under exploration (Oil/gas reservoirs conﬁrmed)

Crude oil: 22 Mbbld
Natural gas: 2 MMcf/d

Vitoria

BM-ES-23

BRAZIL
Atlantic Ocean

CamposFrade Project

Macae

Oil field

Interest 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 201727

J a p a n

Y a b a s e O il F ie ld

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

S e k ih a r a G a s F ie ld(u n d e rg ro u n d s to ra g e )N a o e ts u L N G

T o y a m a L in e

M in a m i-N a g a o k a G a s F ie ld

S h in O u m i L in e

D o m e s t ic
N a t u r a l G a s

T o m i B S *M a t s u m o t o C it y

C h in o C it y

N a g a n o
P re fe c tu re
K o f u L in e

T e r m in a l[S h iz u o k a G a s ]S h iz u o k a
P re fe c tu re

S h iz u o k a C it y

M in a m if u ji L in e

G u n m a P re fe c tu reS

T o m io k a
C it yY a m a n a s h i
P re fe c tu re
K o f u C it y

T o w n

H o n jo C it y

S a n o C it y

Ir u m a L in e
O m e C it y

K o n o s u C it y

O il a n d g a s ﬁ e ld s

S a ita m a
P re fe c tu re

A d a c h i- k u , T o k y o

M e tr o p o lita n
T o k y oG o te m b a
C it y(IN P E X , S h iz u o k a G a s , T o k y o G a s )T o c h ig i
P re fe c tu re

R y o m o L in e

S h iz u o k a L in e

F u ji C it y

F u jio k a B S *S h in T o k y o L in e

K a r u iz a w a
T o w nM a t s u m o t o L in e

N iig a ta
P re fe c tu re

D o m e s t ic N a t u r a l G a s /R e g a s iﬁ e d L N G

T o k y o L in e

S e c o n d S u r u g a T r u n k L in e

M in a m i-K u w a y a m a O il F ie ld
N a g a o k a C it y

N a g a n o C it y

S o d e s h i L N G

M in a m i-A g a O il F ie ld

J o e t s u C it y

T o y a m a
P re fe c tu reEast Japan Station

N iig a t a C it y

K a s h iw a z a k i
C it yIt o ig a w a
C it yT o y a m a
C it yT e r m in a l

A k ita P r e fe c tu r e

R e g a s iﬁ e d
L N G

C h ib a C it yT e c h n ic a l R e s e a r c h C e n te r

O th e r p r o je c t
N a tu ra l g a s
p ip e lin e n e tw o r k

H e a d O fﬁ c e(A k a s a k a , M in a to -k u )* B S ・・・B o o s t e r s t a t i o n

N a r it a L in e

(K ita k a r a s u y a m a , S e ta g a y a -k u )S a m m u C it y

M a jo r o fﬁ c e

N a r u to G a s F ie ld

C h ib a
P re fe c tu re0

1 0 0 k m

N a t u r a l G a s B u s in e s s in J a p a n
In the 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 Prefecture), which commenced operations in
December 2013, is transported througha trunk pipeline network of approximately 1,500 km stretching across the
Kanto, Koshinetsu and Hokuriku regions,

28

INPEX CORPORATION Annual Report 2017

and sold to customers including city gas
companies and large-scale plants along
the aforementioned network.
INPEX has experienced steady
growth in sales of natural gas volume
due to efforts to expand its supply
infrastructure, as well as the highly
environmentally friendly attributes ofnatural gas. Natural gas is expected to be
used for a wide variety of applications,
not only as a fuel for thermal energy

but also as a fuel for onsite power
generation and co-generation, as well
as a fuel for natural gas electric power
plants and a raw material for chemical
products. INPEX is targeting annual
sales of 2.5 billion m3 by the early 2020s
and as much as 3.0 billion m3 overthe long term. In October 2016, theCompany marked the full-scale openingof the Toyama Line, a natural gas trunk
pipeline stretching from Itoigawa City,

Niigata Prefecture, to Toyama City,
Toyama Prefecture, that had been underconstruction since 2012.
Alongside the full deregulation of
the electric power market since April
2016, INPEX has responded to growing
demand from gas-fired electric power
plants and is engaged in the electric
power wholesale business with partner
Chubu Electric Power Co., Inc., for the
supply of electric power to city gas

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

17.5

19.1

2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3

companies. Moreover, in light of the fullderegulation of the gas retail market
from April 2017, INPEX undertook areorganization of relevant areas withthe objective of enhancing marketing
capabilities and advancing businessstrategies suited for the entire domesticgas business, in order to precisely
address changes in the businessenvironment, including changes in thecompetitive landscape in the domesticgas market, as well as the creation andstrengthening of demand as companies
shift to natural gas in the Company’s gas
wholesale service areas.
At the Naruto Gas Field in Chiba
Prefecture, natural gas is being
produced from water-soluble gas
fields. In addition, after extracting thenatural gas from underground water(brine water), the brine water is used
to produce iodine, which is exported
to Europe, the United States andelsewhere.

Sea ofJapan

Echigo Line

Sekihara Gas Field(underground storage)

MitsukeCity

Shinetsu
HonsenNagaokaCity

JoetsuShinkansen
Line

Kashiwazaki City

Minami-Nagaoka
Gas Field
Gas ﬁeld

Ojiya City
Joetsu Line

Natural gas pipeline crossing a river(Shibumi River, Niigata Prefecture)R e n e w a b le E n e r g y a n d O t h e r In it ia t iv e sPower Generation Business in Japan

Geothermal Development

Geothermal power is the generationof electricity with turbines poweredby steam produced from the thermal

4

Moreover, INPEX took steps to participate in the Sarulla Geothermal Independent Power Producer (IPP) Project inIndonesia from June 2015. The project
involves constructing a world-class geothermal power plant in the Sarulla Geothermal Field located in the island province of North Sumatra, and plans callfor providing generated power to Indonesia’s government-owned electricity
company over a period of 30 years.
Construction of the power generation
plant began in 2014. In March 2017,
commercial operations were launchedwith 110 MW of electricity being generated by the ﬁrst unit. We are proceeding with construction and other workon the plant’s second and third units
with the aim of commencing commercial operations in sequence, and expect
the amount of power generated to be
increased to 330 MW in stages.

Project Overview

In March 2013, the Company began
generating electricity at INPEX Mega
Solar Joetsu, a solar power plantwith 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,
through cooperation between Group
companies, a new 2MW solar power
plant was built next to the original site.
Power generation began in July 2015. Itis estimated that these two solar power
plants will generate around 5,330,000
kWh annually, enough electricity topower 1,600 homes.
In addition, INPEX constructed ahigh-efﬁciency gas turbine combined
cycle thermal power plant with an
output of about 55,000 kW next to its
Koshijihara plant in Niigata Prefectureand has been supplying electricity on
a wholesale basis to power producers
and suppliers (now retail electricity providers) since May 2007.

energy of magma underground.
With a view toward geothermal
power generation, INPEX and Idemitsu
Kosan Co., Ltd., have jointly conducted
geothermal surveys in the Amemasudake region of Hokkaido Prefecture
and the Oyasu region of Akita Prefecture since 2011. Joined by Mitsui Oil
Exploration Co., Ltd., in 2012, the companies undertook geothermal resource
surveys by drilling a total of ﬁve survey
wells in the Amemasudake region andsix more survey wells in the Oyasu
region from 2013 to 2016.
In ﬁscal 2017, we plan to continue
conducting geothermal resource surveys by drilling at one of the Amemasudake survey wells and at one of the
Oyasu wells.
Also a member of the geothermal
resource survey group in Fukushima
Prefecture, INPEX has been conducting land surveys in areas surrounding
Mt. Bandaisan since September 2013.
Having conducted geophysical surveys from 2014 to 2015, two survey
wells were drilled in the Bandai regionin 2016. We plan to continue evaluation work based on the results of thedrillings.

Sarulla Geothermal IPP Project

INPEX CORPORATION Annual Report 201729