5

Project Overview

Segment Overview

Asia & Oceania

Eurasia

INPEX’s core region. INPEX has its largest number of projects and owns its
largest reserves in this region. INPEX isproceeding with large-scale LNG projects, including Ichthys and Abadi.

INPEX owns the large-scale ACG
and Kashagan oil projects and has
acquired a number of exploration
projects in recent years.

p. 48

p. 54

5

1,245

1,296

7

Number of countries

▶

1,551

▶

Other project
In production

1

13

Under exploration

21

Number of projects
Under development

42

3

3

5

3

191

190

188

2014

210

2013

207

2012

■Net production

211

2011

167

2010

201

2009

214

(million boe)

195

■Proved reserves

185

Production/Reserves

179

367

466

530

Discovered/Preparation for development

7046

INPEX CORPORATION Annual Report 2014

28

25

25

26

84,32547,07685,541
41,752

96,34142,601

2013

2014

68,31936,461

2012

27

2014

73,57439,769

2013

25

2012

2010

2009

2010

2011

485,069

485,275

2012

2011

2009

73,68834,465
2011

299,599

483,187

406,828

2010

264,8492009

281,623■Operating income (¥ million)

235,814

191,070■Net sales (¥ million)

352,383

Net sales/
Operating income

285,408435,824(thousand boed)

2013

2014

Middle East &Africa▶

p. 56

A substantial contribution is fromthe ADMA Block in the United
Arab Emirates. Oil projects are themainstay.

AmericasJapan

INPEX focuses on the potential of
shale gas in Canada. The Lucius projectin the U.S. Gulf of Mexico is planned
to start production in the latter halfof 2014.

INPEX engages in natural gas production
and sales via, for example, the MinamiNagaoka Gas Field in Niigata Prefecture,
its pipeline network, and the Naoetsu
LNG Terminal. INPEX also focuses on
unconventional types of energy, such as
geothermal development.

7

1

▶

7

1

4

10

2

6

857

2

▶

p. 62

Minami-Nagaoka
Gas Field

18

Naoetsu LNG
Terminal

11

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

1

505

518

583

636

682

1

p. 58

174

25

28

29

27

93,95932,555

130

138

30

2014

93,42333,883

117

32

2013

2009

2010

2011

2012

2013

2014

2011

126

137

65
20

68

2012

11,435(7,646)

2011

17

36

2010

5,945
(6,089)

30

18

2010

21

40

2009

2009

2013

5,525
(5,518)

2013

2014

2012

(3,035)357,3432012

21

621,513421,184

354,136

120,268

118,937

113,662

104,525

22,771

12,673

1,028

28,5682014

24,607

2011

25,9592010

2010

243,113205,572

303,819

350,735

463,151
318,691
2009

2009

16,692

2014

17
38

168

2013

10,079(1,340)158

2012

520,835

2011

155

135

2010

500,033

132

2009

Project Overview

146

5

2011

2012

2013

2014

INPEX CORPORATION Annual Report 2014047

Project Overview by Region

Asia & Oceania
INPEX is engaged in activities in the Offshore Mahakam Block in Indonesia, which is contributing significantly to earnings, and the large-scale Ichthys and Abadi LNG projects, where development and preparation for development are ongoing. In the Asia and Oceania region, theCompany is also actively advancing more than 20 exploration projects with growth potential.

048

INPEX CORPORATION Annual Report 2014

1 Offshore Mahakam Block and Attaka Unit
INPEX entered into a production sharing
contract (PSC) with the Indonesian Government in October 1966, at that timeacquiring a 100% interest in the Offshore
Mahakam Block. The Attaka Unit wasestablished in April 1970 through theunitization of part of the adjacent blocks
owned by INPEX and Unocal (now Chevron), with each company taking a 50%
interest. Production of crude oil and natural gas has continued since 1972. INPEX
farmed out 50% of its interest in the
Offshore Mahakam Block to CFP (nowTOTAL) in July 1970. This venture subsequently made a series of discoveries in
the Bekapai (oil), Handil (oil), Tambora (oiland gas), Tunu (gas), Peciko (gas), Sisi andNubi (gas), as well as the South Mahakam(gas), fields, each of 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 in Japanby tanker from the Santan and Senipah
terminals. Most of the natural gas is supplied to the Bontang LNG Plant, and thenshipped as LNG to customers in Japanand elsewhere.
The Offshore Mahakam Block has
begun to see output decline after morethan 40 years of production. In 2012,
impediments at production wells led to alarge 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.
The PSC for the Offshore Mahakam
Block expires at the end of 2017.
Together with TOTAL (the operator), we
have been engaged in negotiations with
the Indonesian authorities to secure acontract extension beyond 2018.

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2013)

Venture company(established)

Interest owned(*Operator)

Offshore Mahakam

Crude oil: 72 Mbbl/d
In production Natural gas: 1,391 MMcf/d
LPG: 12 Mbbl/d

INPEX CORPORATION(February 21, 1966)

INPEX 50% TOTAL* 50%

Attaka Unit

Bontang LNG Plant
Santan Terminal

INPEX 50% Chevron* 50%

Attaka Unit
Attaka Field

Badak Field
Nilam Field

Tunu Field

Tambora Field
Sisi Field

Handil Field

Nubi Field

Senipah Terminal

5

Bekapai Field

Project Overview

Balikpapan

Peciko Field

Offshore
Mahakam BlockSouth Mahakam Field

Gas field

Oil field

Oil and gas field
1

2
1, 2: Shipping terminal

INPEX CORPORATION Annual Report 2014049

2 South Natuna Sea Block B
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 theblock to 35% with the purchase of anadditional interest. Crude oil production
began in 1979, and supplies of natural
gas to Singapore via Indonesia’s firstinternational pipeline commenced in
2001. Additional deliveries of natural gas
from this pipeline to Malaysia started in
2002. These supply milestones contributed to the extension of 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 production, 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.
Contract area
(block)Project status(production on the basis of all fields andaverage rate of FY2013)

South Natuna
Sea B

In production

Crude oil: 31 Mbbl/dNatural gas: 333 MMcf/d
LPG: 12 Mbbl/dNatuna Sea

North Belut
BelidaBawal

KerisiSouth Natuna Sea
Block B

South BelutNatuna Island

Hiu
Sembilang

BelanakGas field

Oil field

Oil and gas field

Venture company(established)

Interest owned(*Operator)

INPEX Natuna, Ltd.
(September 1, 1978)

INPEX Natuna 35%
ConocoPhillips* 40%
Chevron 25%

FPSO vessel

3 Sebuku Block Ruby Gas Field
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.

050

Bontang LNG Plant
Santan Terminal

Fertilizer plant
Attaka Field

Tunu Field

Senipah Terminal
Balikpapan
Kalimantan

Peciko Field
South Mahakam Field
Makassar Strait

Sebuku BlockGas field
Oil field

Sulawesi

Ruby Gas Field

Contract area
(block)Project status(production on the basis of all fields andaverage rate of FY2013)

Venture company(established)

Interest owned(*Operator)

SebukuIn production (Natural gas: 35 MMcf/d)

INPEX South
Makassar, Ltd.

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

INPEX CORPORATION Annual Report 2014

Offshore production facility in the Ruby Gas Field

4 Abadi LNG Project
INPEX acquired a 100% interest in the
Masela Block in November 1998 throughan open bid conducted by the Indonesian Government. INPEX proceeded with
exploratory activity as the operator, andthe first exploratory well drilled in 2000
discovered the Abadi Gas Field. Subsequently, six appraisal wells were drilled(two in 2002 and four in 2007–2008), allof which confirmed the presence of gas
and condensate reservoirs.
The Indonesian Government granted
its approval to the plan of development
for Stage-I (POD-1) for a “floating LNG”
with a capacity of 2.5 million tons per yearof LNG in December 2010. Thereafter,

INPEX undertook FEED works for subsea production facilities from November
2012 to January 2014. In addition, INPEX
continues to engage in FLNG FEED work,
which began from January 2013. After
FEED work is completed, we will turn ourattention to contractor selection and LNG
marketing in preparation for making a final
investment decision.
We continue to study the feasibilityof developing the entire field based on
proven reserves of gas. Aiming to increase
the amount of exploitable reserves, INPEX
undertook the drilling of three additional
appraisal wells and one exploratory wellfrom June 2013 to June 2014.

Tanimbar Island
INDONESIA

Abadi Gas Field Arafura Sea
AUSTRALIA
Timor Sea

DarwinContract area (block)

Project status

Venture company (established)

Interest owned (*Operator)

MaselaPreparation for development

INPEX Masela, Ltd.
(December 2, 1998)

INPEX Masela* 65% Shell 35％

Gas field

5
Project Overview

1

3

2

4
1, 3: Drillship for Abadi LNG Project 2: Production test 4: Floating LNG (rendering)

INPEX CORPORATION Annual Report 2014051

5 Prelude FLNG Project (WA-44-L Block)
In June 2012, we acquired from Shell a
17.5% interest in the Prelude FLNG Project, which is located in WA-44-L, approximately 475 km north-northeast of Broome,
off the coast of Western Australia. A production, liquefaction and shipment project using FLNG, the Prelude FLNG Project

consists of the Prelude and Concerto gas
fields and will produce approximately 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, 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 around 10
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.
Timor Sea

Concerto Gas Field

WA-44-L

Prelude Gas Field

Ichthys Gas-Condensate Field

AUSTRALIA

Gas field

FLNG vessel

Contract area (block)WA-44-L

Project status

Venture company (established)

Interest owned (*Operator)

Under development

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

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

6 Berau Block Tangguh LNG ProjectMI 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,

and the first shipments of LNG began in
July 2009.

Papua Province (Indonesia)

Kaimana

Berau BlockGas field
Shipping facility

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2013)

Venture company(established)Berau
In production
Tangguh Unit

052

Crude oil: 6 Mbbl/dNatural gas: 986 MMcf/d

INPEX CORPORATION Annual Report 2014

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

Interest owned(*Operator)
Ml Berau 22.856% BP* 48.0％
Nippon Oil Exploration (Berau) 17.144% KG Berau 12.0%
MI Berau 16.3% BP* 37.16% CNOOC 13.9%
Nippon Oil Exploration (Berau) 12.23%
KG Berau, KG Wiriagar 10.0% LNG Japan 7.35% Talisman 3.06%

7 Van Gogh Oil Field, Ravensworth Oil Field and Others

Van Gogh FPSOINPEX 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 WA-35-L andWA-43-L blocks, at which oil productioncommenced in February and August of
2010, respectively. The developmentof the Coniston Unit, which saddles
WA-35-L and WA-55-L, was started in
December 2011, and work targeting thecommencement of crude oil productionin early 2015 is under way.

Indian Ocean

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

WA-35-L
WA-155-P (Part II)
WA-155-P (Part I)
Ravensworth Oil Field

ExmouthProject status
Venture(production on the basis of allcompany
fields and average rate of FY2013) (established)

Interest owned(*Operator)

WA-35-L (Van Gogh Oil Field)

In production (Crude oil: 9 Mbbl/d)

INPEX Alpha 47.499% Apache* 52.501%

WA-43-L (Ravensworth Oil Field)

In production (Crude oil: 10 Mbbl/d)

WA-35-L & WA-55-L
Unitization area (Coniston Unit)

Under development

WA-35-L (excluding Van Gogh Oil Field)
WA-155-P (Part Ⅱ)

Under exploration

WA-155-P (Part Ⅰ)

AUSTRALIA

Oil field

Contract area
(block)INPEXAlpha, Ltd.
(February 17,
1989)

Onslow

WA-43-L

INPEX Alpha 28.5% BHPBP* 39.999% Apache 31.501%
INPEX Alpha 47.499% Apache* 52.501%
INPEX Alpha 47.499% Apache* 52.501%
INPEX Alpha 18.670% Apache* 40.665% OMV 27.110% JX 7.000% Tap 6.555%
INPEX Alpha 28.5% Apache 71.5%

8 Bayu-Undan Project (JPDA03-12 Block) and Kitan Oil Field (JPDA06-105 Block)

EAST TIMOR

Abadi Gas Field

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, weContract area
(block)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
Venture company(production on the basis of all(established)fields and average rate of FY2013)

Bayu-Undan
Unit

JPDA06-105
In production(Kitan Oil Field) (Crude oil: 12 Mbbl/d)Interest owned(*Operator)
INPEX Sahul 19.2458049%
ConocoPhillips* 61.3114766%
Santos 19.4427185%

JPDA03-12
In production
Crude oil: 36 Mbbl/dNatural gas: 572 MMcf/d
LPG: 21 Mbbl/d5
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.

INPEX Sahul, Ltd.
(March 30, 1993)

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

INPEX Timor Sea, Ltd. INPEX Timor Sea 35%(November 25, 1991) Eni* 40% Talisman 25%

INDONESIAJPDA06-105 (Kitan Oil Field)
Timor Sea
Joint Petroleum Development Area

Darwin Gas Pipeline
Bayu-Undan Gas-Condensate Field
DarwinAUSTRALIA

Gas field

Oil field
Darwin LNG

INPEX CORPORATION Annual Report 2014053

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 near Shetland Island in the United Kingdom, 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 andcommercial discoveries were announced
in 2002. After development work, theKashagan Oil Field began producing

crude oil in September 2013, but production was suspended due to gas leaks
from the pipeline.
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.

Onshore facility

054

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 2014

2 ACG Oil Fields
INPEX acquired an interest of the AzeriChirag-Gunashli (ACG) Oil Fields ina region of the south Caspian Sea in
Azerbaijan in April 2003. At the ACG
Oil Fields, oil is being produced at the
Chirag Field, the Central Azeri Field,

the West Azeri Field, the East Azeri Field
and the Deepwater Gunashli Field. Additional development work on the Chirag
Oil Project since 2010 led to the start ofproduction of crude oil in January 2014.

Contract area
(block)Project status(production on
the basis of all fields
and average rate of FY2013)

Venture company(established)

Interest owned(*Operator)

ACG(Azeri, Chirag,
Gunashli)

In production(Crude oil: 651 Mbbl/d)

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

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%

Marine production facilities

3 BTC Pipeline Project
The 1,770-km BTC pipeline stretches from
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, Ltd.
(October 16, 2002)

INPEX BTC Pipeline 2.5% BP* 30.1%
Azerbaijan (BTC) Limited 25% Chevron 8.9% Statoil 8.71%
TPAO 6.53% Eni 5% TOTAL 5% Itochu 3.4%
ConocoPhillips 2.5% ONGC 2.36%

5
Project Overview

Focus in 2014
KAZAKHSTAN

AtyrauRUSSIA

Offshore
North Caspian Sea
Contract Area
Black Sea
GEORGIA

Tbilisi

Caspian Sea

Baku
ARMENIA AZERBAIJAN

TURKEYBTC Pipeline

Participation in Offshore Explorationin Greenland Sea
INPEX won exploration licenses for the exploration blocks
located in the northeastern part of offshore Greenland,
jointly with Chevron and Shell. These blocks are a frontier
region where little exploratory drilling for crude oil andnatural gas has taken place yet, drawing the attention of
the worldwide oil development industry here in recent
years. We will survey the area through exploratory work
to discover oil and natural gas fields.

ACG Oil Fields

Block 9CeyhanGreenland
Mediterranean
Sea

SYRIA
IRAN
IRAQ

Block 14
Oil field

INPEX CORPORATION Annual Report 2014055

Middle East & Africa
In the Middle East, the mainstay ADMA Block in Abu Dhabi in the United Arab Emirates
contributes substantially, accounting for more than half of net production volume. In Africa,
production volumes from Offshore Angola Block 14, acquired during the year ended March
31, 2013, are also contributing to net production volume.

Focus in 2014
Contract Extension for Upper Zakum Oil Field
and Improved Financial Conditions
The concession contract for the Upper Zakum Oil Fieldin the Abu Dhabi Sea Block of the United Arab Emirates,in which INPEX is a participant, has been extended by 15
years or more to the end of 2041. In addition, financial
conditions were improved.
The ADMA Block (Upper Zakum Oil Field)

056

INPEX CORPORATION Annual Report 2014

1 ADMA Block

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 by Japan National Oil Corporation (at that 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 five fields in the block.
In addition, a number of development
projects are under way to maintain andexpand oil output, such as redevelopmentof the Upper Zakum Oil Field involving theuse of artificial islands, as well as Phase 1

Project status

Venture company (established)

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

Zirku Island

Umm Al-Dalkh Field
Umm Lulu Field

U.A.E.

Abu Dhabi

Oil field
Oil field underdevelopment

Subsea pipeline

JODCO 12% ADNOC 60% BP 14.67% TOTAL 13.33%
In production

Umm Al-Dalkh Field

Satah Field

Interest owned

Umm Shaif, Lower Zakum Field
Upper Zakum Field

development and other work, with theaim of engaging in early production at the
Umm Lulu and Nasr oil fields.

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

Satah Field

JODCO 12% ADNOC 60% ExxonMobil 28%
JODCO 12% ADNOC 88%
JODCO 40% ADNOC 60%

Nasr Field, Umm Lulu Field

Under development

JODCO 12% ADNOC 60% BP 14.67% TOTAL 13.33%

2 Offshore Angola Block 14

Offshore Angola
Block 14The State ofCabindaCONGOANGOLA

undeveloped fields. In this manner, steps
are being taken to pursue exploration
potential within the block.

5
Project Overview

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

CONGO
Atlantic Ocean

Production facility

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2013)

Venture company(established)

Interest owned(*Operator)

Offshore Angola Block 14

In production (Crude oil: 131 Mbbl/d)Angola Block 14 B.V.
(April 19, 2012)

Angola Block 14 B.V. 20% (including 9.99% of
INPEX’s interest) Chevron* 31%
Sonangol 20% Eni 20% Galp 9%3 Offshore D.R. Congo Block
INPEX has participated in oil exploration and development projects offshore
the Democratic Republic of the Congo(DRC) since July 1970. Oil productioncommenced in 1975. The contract covering this block was extended until 2023 in
May 1995.

MibaleMotobaLukamiMoko

MwambeMisatoLibwa
The Democratic
Republic of the Congo

MuandaTshialaContract
area (block)

Project status
Venture company(production on the basis of all(established)fields and average rate of FY2013)

Offshore D.R. In production
Congo Block (Crude oil: 13 Mbbl/d)

Teikoku Oil (D.R. Congo)
Co., Ltd. (August 1, 1970)

Interest owned(*Operator)
Teikoku Oil (D.R. Congo) 32.28%
Perenco* 50% Chevron 17.72%

BananaGCO
Soyo
Atlantic Ocean

INPEX CORPORATION Annual Report 2014057

Americas
In Canada, INPEX participates in shale gas projects and oil sand projects. The Company isalso engaged in a major deepwater exploration project in the Gulf of Mexico (Lucius) that isslated to commence production in the latter half of 2014. The Company has a track recordthat spans more than 20 years as a development and production operator in Venezuela.
Moreover, INPEX has been advancing offshore oil field projects in Brazil.

058

INPEX CORPORATION Annual Report 2014

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 full-scale development and are aiming for combined production at the Horn River and Cordova
projects 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. In November 2013, INPEX
and its project partners, Nexen Energy

and its project partners will continue toexplore the feasibility of a shale gas LNG
business fully aligned with the Government of British Columbia, local communities and other stakeholders.

ULC and JGC Corporation, were jointly
awarded the sole proponent right at
Grassy Point, British Columbia, Canada,by the Government of British Columbia
for the purpose of examining the viability of constructing an LNG plant. INPEX
Yukon Territories

Northwest Territories
British Columbia

Acquired area
Highway
Major pipelines

Cordova Area

Horn River Area

Liard Area

Contract area
(block)Project status

Venture company(established)

Interest owned(*Operator)

Horn River,
Cordova and Liard areas

In production (partly)

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

INPEX Gas British Columbia 40%
NEXEN* 60%

5Project Overview

1

2

3
1: Completion 2: Drilling site 3: Hydraulic fracturing site

INPEX CORPORATION Annual Report 2014059

2 Joslyn Oil Sands Project
In November 2007, INPEX acquired a
10% interest in the Joslyn Oil Sands
Upstream Project in Alberta, Canada.
Stage 1 development plans call for daily
Contract area
(block)OSL 7280060T24
OSL 7405070799
OSL 7404110452

Project status
Discovered/Preparation fordevelopment

production of 157 thousand barrels ofbitumen using open-cut mining. Currently, we are taking preliminary steps toconsider a development plan.

Venture company(established)

Interest owned(*Operator)

INPEX Canada, Ltd.
(November 28, 2006)

INPEX Canada 10%
TOTAL* 38.25％
Suncor 36.75% Occidental 15%

OSL7405070799
OSL 7280060T24

OSL
7404110452

Athabasca
River

Joslyn Oil Sands
Lease Block
Province of Alberta
Fort McMurray

3 U.S. Gulf of Mexico Projects
INPEX has participated in oil and gas
development projects in the shallow
waters of the U.S. Gulf of Mexico sinceApril 2006, producing crude oil from various blocks.
We participated in deepwater exploration blocks of Walker Ridge 95/96/139
in the Gulf of Mexico in February 2011. In
exploratory work since then, the Yucatan
North-1 exploratory well was drilled andencountered an oil bearing zone withapproximately 36 m net pay. We are anaContract area
(block)Ship Shoal Block 72
West Cameron Blocks 401/402
Main Pass Block 118
Louisiana Block SL20183
Blocks 874/875/918/919 (Lucius Oil Field)
Walker Ridge
Blocks 95/96/139

アメリカ合衆国

lyzing data obtained thus far and are working with our partners on more exploration
and appraisal activities.
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. Development of the Lucius Oil Field has been
under way with the aim of commencing
production of crude oil and natural gas in
the latter half of 2014.

Project status(production on the basis of all
fields and average rate of FY2013)
In production
Crude oil: 0.5 Mbbl/dNatural gas: 7 MMcf/d

Venture company(established)

Main Pass
Block 118

MEXICO

Ship Shoal
Block 72
Walker Ridge
95/96/139

Blocks 874/875/918/919(Lucius Oil Field)
West Cameron Blocks 401/402

Interest owned(*Operator)
Teikoku Oil (North America) 25% PetroQuest* 42.5% Other 32.5%

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

Teikoku Oil (North America) 16.66667% Fieldwood* 83.33333%

INPEX Gulf of
Mexico Co., Ltd.
(April 28, 2010)

INPEX Gulf of Mexico 15% Shell* 70% Other 15%

Under development
Under exploration

Louisiana Block SL20183
Cuervito/
Fronterizo Blocks

Teikoku Oil (North America) 25% PetroQuest* 38% Other 37%
Teikoku Oil (North America) 25％ PetroQuest* 55% Other 20％
Teikoku Oil (North America) 7.2％ Anadarko* 27.8％ Other 65％

Towing the building frame of a production facility to the development site

060

INPEX CORPORATION Annual Report 2014

4 Copa Macoya and Guarico Oriental Blocks
INPEX was awarded a 100% interest ina central onshore area, the East Guarico
Block in Venezuela, in July 1992. INPEX
participated in oil and natural gas fieldrehabilitation, 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 asa result of the change to joint ventureagreements.

Copa Macoya andGuarico Oriental Blocks
Georgetown
CaracasGUYANAVENEZUELA
BogotaCOLOMBIA

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2013)

Venture company(established)

Interest owned(*Operator)

Copa Macoya

In production
Crude oil: 1 Mbbl/dNatural gas: 58 MMcf/dTeikoku Oiland Gas Venezuela,
C.A. (June 7, 2006)

Teikoku Oil and Gas Venezuela* 70% PDVSA Gas 30%

Guarico Oriental

1

Teikoku Oil and Gas Venezuela 30% PDVSA CVP* 70%

2

1, 2: Gas plant

5 Frade Block
After its initial discovery in 1986, a
final investment decision was made forthe development of the Frade Oil Field in
June 2006. Following development work,commercial production started in June
2009, marking the first crude oil to be

produced in Brazil by an enterprise witha significant Japanese equity interest.
Production was temporarily suspended
in March 2012 due to the presence of asmall oil sheen but safely resumed at theend of April 2013.

Contract area
(block)Project status(production on the basis of
all fields and average rate of FY2013)

Venture company(established)

Interest owned(*Operator)

Frade Project

In production
Crude oil: 16 Mbbl/dNatural gas: 0.1 MMcf/d

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

Frade Japão Petróleo 18.2609%
Chevron* 51.7391% Petrobras 30%

BM-ES-23

Under exploration

INPEX Petróleo Santos Ltda. (January 19, 2007)

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

Vitoria

Project Overview

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.

5

BM-ES-23

BRAZIL
Atlantic Ocean

CamposFrade Project

Macae

Oil field

FPSO vessel

INPEX CORPORATION Annual Report 2014061

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 of approximately 1,400 km. INPEX was also involvedin the construction of the Naoetsu LNG Terminal, which began operations in December 2013.

Yabase Oil Field
Akita
District Off
f ice
ff

Akita Prefecture

Naoetsu LNG Terminal
Higashi-Kashiwazaki Gas Field
Sekihara Gas Field (underground storage)
Niigata Marketing
OfficeNiigata City

Toyama Line (Under construction)
T
Kashiwazaki
City

Itoigawa
City

Toyama City

Minami-Kuwayama Oil Field
Nagaoka City

Joetsu City

ToyamaPrefecture

Shin Oumi Line

Natural Gas Business in Japan

Domestic Natural Gas /Regasified LNG

Nagano City

(Minami-Nagaoka Gas Field, etc.))

Tomi BS*

Matsumoto City

Fujioka BS*

Shin Tokyo Line

Chino City
Tomioka City

Kofu Line

Second Suruga Trunk Line
Sodeshi LNG Terminal[Shizuoka Gas]

Showa Town

Minamifuji Line

Fuji City

Sano City

Iruma LineOme City

Konosu City

Oil and gas fields

SaitamaPrefecture

Other project

Adachi-ku, Tokyo
Metropolitan
Tokyo

GotembaCity(INPEX, Shizuoka Gas, Tokyo Gas)

Tochigi
Prefecture

Ryomo Line

Honjo City
Yamanashi
Prefecture
Kofu City

Shizuoka Line

Shizuoka
Shizuoka
City
Prefecture

Isesaki Power Control Center

Gunma
Prefecture

Karuizawa
Town

NaganoPrefecture

Niigata
Prefecture

Domestic Natural Gas

Tokyo LineT

Matsumoto Line

Niigata District Office
Minami-Aga Oil Field

Natural gas
pipeline network

Head Office (Akasaka, Minato-ku)

Regasified
LNG
Technical Research Center* BS・・・Booster station

Chiba City

(Kitakarasuyama, Setagaya-ku)

Itazuma Power Control Center

Sammu City
Chiba
Prefecture

Major office or
district officeNaruto Gas Field
Chiba District Office0

Focus in 2014
Methane Hydrate Resource Development in Japan
A type of unconventional natural gas, methane hydrate is a solid crystal structurewith methane trapped inside. Deposits of methane hydrate have been confirmed
along the coastline of Japan, but extracting it from low-temperature, high-pressure
geological formations is technologically challenging. Experts have said that moretime is needed to develop economically viable technologies.
INPEX participates in research and survey activities led by the national government and is a member on the exploratory committee. Leveraging its technologies
accumulated in upstream operations, INPEX has been contributing to solving thetechnological challenges for extracting methane hydrate, especially in the field of
subsea production equipment.

062

INPEX CORPORATION Annual Report 2014

Methane hydrate (combustible ice)

100 km1 Natural Gas Business in JapanAt the Naruto Gas Field in Chiba Prefecture, natural gas is being produced fromwater-soluble gas fields. After extracting
natural gas from underground water (brinewater), the brine water is used to produce
iodine, which is exported to Europe, theUnited States and elsewhere.

Echigo Line

Sekihara Gas Field(underground storage)

Sea ofJapan

Minami-Nagaoka
Gas Field
Gas field(100 million Nm /year) Note: 41.86MJ per 1m

15

Ojiya City

Joetsu Line

18.0

16.5

17.2

17.6

17.5

2010/3

2011/3

2012/3

2013/3 2014/3

JoetsuShinkansen
Line

Kashiwazaki City

3

20

Shinetsu
HonsenNagaokaCity

HigashiKashiwazaki
Gas Field

Natural Gas Sales Volume in Japan3

Mitsuke
City

10
5
0

Breakdown of Natural Gas Sales by
End Purchasing Prefecture

1(Year ended March 31, 2014)
Chiba Prefecture 2.9%
Yamanashi Prefecture 3.8%
Tochigi Prefecture
4.0%

NaganoPrefecture
16.9%

Tokyo 1.2%
Akita Prefecture 0.8%
Shizuoka Prefecture
0.4%

Niigata
Prefecture
28.9%

Saitama
Gunma
Prefecture
Prefecture
17.7%
23.4%

5
2

Project Overview

Discovered in 1979 and in production
since 1984, the Minami-Nagaoka Gas
Field is one of the largest in Japan. After
processing, the natural gas is transported
through an about 1,400-km trunk pipeline network stretching across the Kanto
and Koshinetsu regions that surroundthe greater Tokyo metropolitan areaand delivered to city gas companies
and industrial customers along this network. Most users of the natural gas are in
Niigata Prefecture, due to its proximity to
the Minami-Nagaoka Gas Field, followedby customers in Gunma, Saitama andNagano prefectures.
INPEX has experienced steady growthin sales of natural gas volume due to sharp
rises in the prices of competing fuels, aswell 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 a wide
variety of applications, such as a fuel for
onsite power generation and co-generation, as well as a raw material for chemical products. INPEX targets annual salesof 2.5 billion m3 by the early 2020s and asmuch as 3.0 billion m3 over the long term,reflecting further capacity increases for our
Shin Tokyo Line and development of the
Toyama Line (extending from Itoigawa City,
Niigata Prefecture, to Toyama City, Toyama
Prefecture), construction of which began in
April 2012.

1: Natural gas pipeline that crosses a river(Shibumi River, Niigata Prefecture)
2: Drilling work at the Minami-Nagaoka Gas Field(Nagaoka City, Niigata Prefecture)

2 Construction of the Naoetsu LNG Terminal
The Sea of Japan

Naoetsu LNG Terminal

Naoetsu Oil Terminal

Thermalpower
stationTo

Saigata
Station▼With the commencement of Naoetsu
supply operations, we will be able toenhance the domestic capacity and stability of our supply structure by receiving LNG from our overseas projects, andby combining that supply with existing
domestic supplies from Minami-Nagaoka
and other fields.

az

iw

sh

Ka

i
ak

Naoetsu
Port
R8
Kuroi
StationHokuriku
Expressway
R253

Naoetsu Station
To Toyama▼

To Toyama▼

We expect domestic demand for natural gas to rise steadily and continue tobe firm due to factors such as the shift
to natural gas from oil as consciousness
about the environment and energy conservation increases, as well as rising oil
prices. To ensure stable supply to thedomestic natural gas market over thelong term, INPEX began constructing an
LNG terminal in Joetsu City in Niigata
Prefecture in July 2009. Construction wascompleted on schedule, and the terminal
received its first LNG carrier in August
2013. Key facilities finished their trial
runs faster than planned, leading to thecommencement of operations ahead ofschedule in December 2013.

R18
JoetsuInterchange▼ To Nagano

Full view of the Naoetsu LNG Terminal

INPEX CORPORATION Annual Report 2014063

3 Natural Gas Pipeline in JapanINPEX owns a natural gas pipeline in Japanthat stretches approximately 1,400 km,
connecting seven prefectures and one
metropolitan area in the Kanto and Koshinetsu regions.
INPEX has been updating its pipeline
network for transporting natural gas sincethe 1960s. The Company started constructing this pipeline network in 1959,
when it discovered the Kubiki Oil and Gas
Field in the Joetsu area of Niigata Prefecture, to supply natural gas from the Kubiki
Oil and Gas Field to city gas companies.
In 1962, we completed the pipeline (theTokyo Line), a long-distance, high-pressure pipeline that is the first of this kindin Japan. The pipeline runs from the Sea

of Japan to the Pacific Ocean, connecting
Joetsu City, Niigata Prefecture, to Adachi
Ward, Tokyo. With the discovery of the
Minami-Nagaoka Gas Field and subsequent start of production, together withefforts to address the resulting increase innatural gas demand, INPEX commenced
construction of the Shin Tokyo Line, whichruns parallel to the Tokyo Line, from themid-1990s. As of the end of June 2014,
the total high-pressure pipeline network
stretched over a length of approximately
1,400 km, roughly equivalent to the direct
distance from Sapporo to Fukuoka. Looking ahead, plans are in place for the completion of construction on the Toyama Line(about 102 km in length from Itoigawa

City in Niigata Prefecture to Toyama Cityin Toyama Prefecture) in mid-2016. INPEX
will continue to expand its network inorder to reliably and efficiently deliver
natural gas to customers who reside along
the pipeline. The Company will also work
diligently to increase its supply capabilities.

1

2

1: The Tokyo Line at the time of construction
2: Construction of the Toyama Line

4 Renewable Energy and Other Initiatives
Power Generation Businessin Japan
1. Koshijihara Electric Power Plant
INPEX constructed a high-efficiency gas
turbine combined cycle thermal power
plant with an output of about 55,000 kw
next to its Koshijihara plant in Niigata Prefecture, and began supplying electricity
on a wholesale basis to power producers and suppliers (PPS) in May 2007. Thispower plant uses natural gas and condensate produced from the Minami-Nagaoka
Gas Field as fuel to generate electricity.
Our strengths in this business are the ability to reliably procure fuel and the ability
to flexibly choose fuels based on energy
market conditions. By switching fuels in
response to seasonal fluctuations in gas
demand, we are able to increase the operating rate of the gas plant.
2. Solar Power Plant
In March 2013, the Company began
generating electricity at INPEX Mega
Solar Joetsu, a solar power plant with amaximum output of 2 MW, located on
the former site of an oil refinery that it
shut down in Joetsu City, Niigata Prefecture. In March 2014, INPEX decided
to construct a new solar power plantwith an output of 2 MW next to this site.
We estimate that these two solar power
plants will generate around 5,330,000
kWh annually, enough electricity topower 1,600 homes.

064

INPEX CORPORATION Annual Report 2014

INPEX
Mega Solar Joetsu,
Niigata Prefecture

Oyasu region,
Akita Prefecture

Koshijihara
Power Plant,
Niigata Prefecturre

Amemasuddake
region,Hokkaido
Prefecture

Power plant
Geothermal development
Solar power generation(mega solar)

Geothermal DevelopmentAreeas surrounding
thee Bandaisan region,
Fukushima Prefecture

Fumarolic testing at a geothermal well
(Teiseki Drilling Co., Ltd.)

Geothermal power is the generation ofelectricity with turbines powered by steam
produced from the thermal energy ofmagma 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 were joined by Mitsui
Oil Exploration Co., Ltd., in 2012 and drilling of one survey well in the Amemasudake region and two survey wells in the
Oyasu region commenced during 2013.
We plan to continue conducting geothermal resource surveys by drilling survey
wells in both of these regions in 2014. 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.