Segment Overview

Asia &
Oceania

Eurasiau p. 24

In production
Under development

39
1

1

4

14

2

2

Preparation for development

6

3

1,145

1,296

Number of projects

22

1,218

7

1,245

Number of countries

1,551

u p. 16

Under exploration

14

INPEX CORPORATION Annual Report 2016

188
32
66,852
13,832

197
27

2016

94,05032,228

191
26

2015

96,34142,601

190
25

188

185

210

2014

85,541
41,752

178,225
2015

25

2014

2013

84,32547,076

2013

28
2012

2012

68,31936,461

2011

2011

2011

2012

2013

2014

2015

2016

302,871

485,069

Operating income (¥ million)

2016

97,204

166
2015

409,776167
2014

264,849179
2013

485,275201
2012

281,623

Net sales (¥ million)

235,814

Net sales/Operating income

406,828

2011

483,187

Net production (thousand boed)

299,599

Proved reserves (million boe)214

Reserves/Production

367

Other

2016

Middle East
& Africa

AmericasJapanu p. 28

u p. 30

1,742

u p. 26

6

9

7

7

5
1

15

9

1

Naoetsu LNG
Terminal

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

783

857

2

Minami-Nagaoka
Gas Field

26
109,601
12,096

153

25
129,522163

27120,268
22,771174

29
118,937
28,568130

28113,662
24,607138

25
104,525
25,959

117

23
36

2015

13,727（14,002）

74

2014

21

2013

13,351（15,303）

65

2012

20

2011

2015

11,435（7,646）

68

2016

17

2015

2014

5,945
（6,089）

2014

18
36

2013

2013

5,525
（5,518）

2012

21
30
2015

2011

2012

12,673（3,035）

2014

2016

2011

2011

2012

2013

2014

2015

2016

2016

16,693

290,866

357,3432013

333,213354,1362012

421,184

350,735
243,1132011

2016

516,513169
2015

524,528168
2014

621,513

158
2013

520,8352012

500,033

2011

155

135

248

505

518

Project Overview

583

4

2016

INPEX CORPORATION Annual Report 201615

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 the large-scale Ichthys
and Abadi LNG projects, where development and preparatory development activities areunder way. The Company is also actively advancing more than 20 exploration projects withgrowth potential across the region.

16

INPEX CORPORATION Annual Report 2016

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. 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 subseContract area
(block)Offshore Mahakam
Attaka Unit

quently made a series of discoveries
in the Bekapai (oil), Handil (oil), Tambora (oil and gas), Tunu (gas), Peciko(gas), Sisi and Nubi (gas), as well as theSouth Mahakam (gas), ﬁelds, each ofwhich has continued to produce crude
oil and natural gas. The crude oil andcondensate produced from theseﬁelds are shipped mainly to oil reﬁneries and power companies in Japanby tanker from the Santan and Senipah
terminals. Most of the natural gas issupplied to the Bontang LNG Plant,
and then shipped as LNG to customers in Japan and elsewhere.

Project status(production on the basis of all fields and average rate of FY2015)
In production

Crude oil: 73 Mbbld
Natural gas: 1,452 MMcf/d
LPG: 7 Mbbld

Bontang LNG Plant

The Offshore Mahakam Blockhas begun to see output decline after
more than 40 years of production. In
2012, impediments at production
wells led to a large drop in output, in
addition to natural attrition. Thereafter,
successful steps were taken to control
the decline in production by advancing efforts to counter sand problems
and accelerate the pace at which theCompany undertakes development
well drilling. Despite these endeavors, production is still expected todecrease gradually in the future.

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

4

Tunu Field

Tambora Field
Handil Field

Project Overview

Sisi Field
Nubi Field

Senipah Terminal

Bekapai Field

Balikpapan

Peciko Field

Offshore
MahakamBlock

INDONESIASouth Mahakam Field
Gas field

Oil field

Oil and gas field

1

2

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

INPEX CORPORATION Annual Report 201617

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 theblock to 35% with the purchase of anadditional interest. Crude oil production began in 1979, and supplies ofnatural gas to Singapore via Indonesia’s ﬁrst international pipeline commenced in 2001. Additional deliveriesof 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 ofSouth Natuna, utilize a world-classﬂoating production, storage and offloading (FPSO) system. Production of
crude oil and condensate began in
December 2004, with LPG productioncommencing in April 2007. After 2006
at this same block, production began at
the Hiu Gas, Kerisi Oil and Gas, North
Belut Gas and Bawal Gas ﬁelds. Most
recently, production commenced at
the South Belut Gas Field in April 2014.

Natuna Sea

South Natuna Sea
Block B

North Belut
BelidaKerisiBawal

NatunaIslandSouth Belut
Hiu
BelanakGas field

Oil field

Oil and gas field

Project status
Contract area
(production on the basis of all fields and(block)average rate of FY2015)

Venture company(established)

Interest owned(*Operator)

Crude oil: 22 Mbbld
South Natuna
In production Natural gas: 253 MMcf/d
Sea B
LPG: 9 Mbbld

INPEX Natuna, Ltd.
(September 1, 1978)

INPEX Natuna 35%
ConocoPhillips* 40%
Chevron 25%

3 Sebuku Block Ruby Gas Field
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.

18

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
Offshore production facility in the Ruby Gas Field

Contract area
(block)Project status(production on the basis of all fields and average rate of FY2015)

Venture company(established)

Interest owned(*Operator)

SebukuIn production (Natural gas: 91 MMcf/d)

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

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

INPEX CORPORATION Annual Report 2016

4 Abadi LNG Project
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, all ofwhich 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 also drilled three appraisal
wells between 2013 and 2014 withthe aim of expanding the volume ofrecoverable reserves. Evaluations ofthese wells resulted in the confirmationof a substantially greater volume ofnatural gas reserves, which was certified
by the Indonesian authorities. Having
considered ways to optimize a planof development centered on a largescale FLNG, for example by increasing
reserve volume and concept selection
studies, the Company submitted arevised plan for the development
based on an FLNG plant with anannual LNG processing capacity of
7.5 million tons to the Indonesianauthorities 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 remains unchanged, and
INPEX will pursue the implementationof the project in the most economicallyand technically rational way, in close
cooperation with its partner Shell andthe Indonesian authorities.

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

4
Project Overview

Contract area (block)

Tanimbar Island

INPEX Masela* 65%
Shell 35％
1

2
1: Production test 2: Drillship for the Abadi LNG Project

INPEX CORPORATION Annual Report 201619

5 The Ichthys LNG Project and Surrounding Blocks
Project Overview
In 1997, INPEX placed an open tender bid to acquire the petroleum
exploration permit WA-285-P, locatedapproximately 200 km northwest ofWestern Australia’s Kimberley coast.
This bid was accepted in August 1998.
During the initial phase of exploration, which began in March 2000, theCompany drilled three exploratory
wells that conﬁrmed the presenceof gas and condensate. As part of asecond 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 of gas and condensate to warrant commercial development. From 2009, the Company
undertook front-end engineering anddesign (FEED) operations, acquired
government approval and engaged
in LNG marketing and other related
activities. A ﬁnal investment decision(FID) was made in January 2012, triggering the start of fully ﬂedged development work.

Status of Development Work
As of March 2016, project progress
rate was approximately 84%. Looking at the status of offshore facilities,
work continues on the construction ofa central processing facility (CPF) anda ﬂoating production, storage andofﬂoading (FPSO) facility. Installationof the topside modules for both offshore facilities has been completed.
Currently, internal construction workand commissioning are under way.
The installation of the chains anchoring the CPF and FPSO on the ocean
was completed in April 2016. As
regards other offshore-related work,
the laying of the 890-km-long gas
export pipeline (GEP) that will connect the Ichthys gas-condensate ﬁeld
with onshore facilities in Darwin wascompleted in November 2015. The
drilling of production wells remains
ongoing. With regard to the onshore
facilities, the Company has ﬁnishedthe delivery and installation of all themodules of 1st train (natural gas liquefaction facilities) and is currently
carrying out connection work. As ofJune 2016, the installation of 90%of the more than 200 modules had
been completed. In moving toward
the commencement of operations ofboth the offshore and onshore facilities, the Company is paying maximum
attention to safety while making progress with a variety of tasks.
Surrounding Exploration Blocks
INPEX holds 12 exploration blocks inthe vicinity of the Ichthys gas-condensate ﬁeld and is currently engaging
in exploration activities. Of this total,
evaluation work on the gas alreadydiscovered at the three WA-56-R,
WA-281-P, and WA-274-P blocks isunder way. In the event that substantial amounts of crude oil and natural
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

1

3

4

1: FPSO under construction 2: ENSCO5006 drilling rig for a production well 3: Subsea wellhead assembly installation operations 4: CPF under construction

20

INPEX CORPORATION Annual Report 2016

Contractarea(block)WA-50-L
Timor Sea

WA-51-L

WA-513-P
WA-504-P

WA-285-P

AC/P36

WA-274-P/
WA-58-R

Under
development

INPEX Ichthys
Pty. Ltd.
(April 5, 2011)

Under
exploration

WA-343-P

WA-343-P

WA-57-R

WA-56-R

WA-502-P

WA-56-R

WA-514-P

AC/P36
WA-494-P

Under
exploration

WA-281-P

IchthysWA-50-L
WA-51-L

Under
exploration(Oil/gas reservoirs conﬁrmed)

WA-57-R
WA-502-P
WA-504-P
AUSTRALIA

WA-513-P

Ichthys gas-condensate field

WA-514-P

Under
exploration

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

Under
exploration

voirs conﬁrmed)

Interest owned(*Operator)

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

(Oil/gas reservoirs conﬁrmed)

Under
WA-274-P/ exploration(Oil/gas reserWA-58-R

WA-285-P
WA-494-P

WA-281-P

VentureProject status company(established)

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

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: Operations to install an FPSO’s ﬂare tower
8: Onshore liquefaction plant module installation operations 9: Onshore gas liquefaction plant

INPEX CORPORATION Annual Report 201621

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 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, which is

the world’s ﬁrst FLNG project, in May
2011. Development of the Prelude
FLNG Project is currently under way,with the start of production targetedat around 10 years from when the Prelude Gas Field was ﬁrst discovered inearly 2007.

Timor Sea

Concerto Gas Field

WA-44-L

Prelude Gas Field

Ichthys
Gas-Condensate Field

AUSTRALIA

Gas field

FLNG vessel

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

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%

7 Tangguh LNG Project (Berau Block)
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 venturewith Mitsubishi Corporation, acquireda stake 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.
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 FY2015) (established)(*Operator)
Berau
TangguhUnit

22

In production

Crude oil: 6 Mbbld
Natural gas: 1,035 MMcf/d

INPEX CORPORATION Annual Report 2016

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

MI Berau B.V.
(August 14, 2001) MI Berau 16.3% *BP 37.16% CNOOC 13.9%
Nippon Oil Exploration (Berau) 12.23% KG Berau 8.56%
LNG Japan 7.35% Talisman 3.06% KG Wiriagar 1.44%

8 Van Gogh Oil Field, Ravensworth Oil Field and Others
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.

Indian Ocean

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

Barrow Island

Van Gogh Oil Field

WA-155-P（Part II）

Ravensworth Oil Field
Onslow

WA-43-L
Exmouth

AUSTRALIA

Van Gogh FPSO vessel

Project status(production on the basis of all
fields and average rate of FY2015)

Contract area (block)WA-35-L (Van Gogh Oil Field)
WA-35-L & WA-55-L Unitization area

Oil ﬁeld

In production (Crude oil: 15 Mbbld)

WA-43-L (Ravensworth Oil Field)

In production (Crude oil: 11 Mbbld)

WA-155-P (PartⅡ)

Under exploration

Venturecompany(established)

Interest owned(*Operator)
INPEX Alpha 47.499% Quadrant* 52.501%

INPEX
Alpha, Ltd.
(February17, 1989)

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%

4

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 discoveryof 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

Project Overview

9 Bayu-Undan Project (JPDA03-12 Block)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.

EAST TIMORINDONESIA
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 FY2015)
JPDA03-12
Bayu-Undan
Unit

In production

Crude oil: 21 Mbbld
Natural gas: 586 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 (TEPCO/Tokyo Gas) 9.198000%

INPEX CORPORATION Annual Report 201623

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
an interest in the Offshore North Caspian Sea Contract Area in Kazakhstan’s
territorial waters. The Offshore North
Caspian Sea Contract Area consistsof 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 locatedin the Caspian Sea at depths of 3–5 m
and is approximately 75 km southeastof Atyrau, Kazakhstan.
Since the ﬁrst exploratory well
was drilled in September 1999, theKashagan Oil Field was conﬁrmed
in 2000 and commercial discoveries were announced in 2002. Afterdevelopment work, the Kashagan Oil
Field began producing crude oil in
September 2013, but production was
suspended due to gas leaks from thepipeline.
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 thedevelopment of the main Kashaganﬁeld with a view to expanding the total
production of the contract area.

Offshore facility

24

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 2016

2 ACG Oil Fields
INPEX acquired an interest in the Azeri-Chirag-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, the Central Azeri, the West
Azeri, the East Azeri, the Deepwater
Gunashli and the West Chirag.

Project status
Contract(production on
Venture company
area
the basis of all fields(established)(block)and average rate of FY2015)
ACG

In production(Crude oil: 632 Mbbld)

Offshore production facilities

KAZAKHSTANInterest 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%

AtyrauRUSSIA

Offshore
North Caspian Sea
Contract Area

GEORGIA

Project Overview

Black Sea

4

Caspian Sea

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 producedin 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 201625

Middle East & Africa

In the Middle East, the ADMA Block in Abu Dhabi in the United Arab Emirates and the ADCO
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.

1 ADMA Block

Zirku Island

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

26

INPEX CORPORATION Annual Report 2016

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 statusartificial 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

Venture company (established) Interest owned

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

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)

Abu Dhabi

United Arab Emirates

Crude oil pipelines
Oil field 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 to 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%, etc.

4

Onshore pipeline

Project Overview

Concession agreement signing ceremony held in April 2015

3 Offshore Angola Block 14
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

Offshore
AngolaBlock 14

Production facility

Contract area
(block)Project status
Venture company(production on the basis of all fields and average rate of FY2015) (established)

Offshore
In production (Crude oil: 109 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 201627

Americas

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 offshore oil projects in Brazil.

28

INPEX CORPORATION Annual Report 2016

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 basinsin British Columbia, Canada, from
Nexen Inc.
In the coming years, the Company will proceed with development
work in the basins, which are currently
partly in production, and implement
studies to consider commercialization
to export shale gas as LNG from the
Canadian west coast.

Shale Gas Project

CANADA

British Columbia
Prince Rupert

Edmonton

Calgary

Contract area (block)

Project status

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

Venture company (established)
VancouverInterest owned (*Operator)

INPEX Gas British Columbia Ltd. INPEX Gas British Columbia40%
Oil field
Victoria(November 28, 2011)
Nexen* 60%

2 U.S. Gulf of Mexico Projects and Others
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.

The Company first participated in
the deepwater Walker Ridge 95/139
exploration block project in the Gulf
of Mexico in February 2011. Having
confirmed the presence of crude oilin an exploratory well, the Company isdrilling a follow-up appraisal well.

Project status(production on the basis of all fields andaverage rate of FY2015)

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

In production

Walker Ridge Blocks
95/139Crude oil: 71 Mbbld
Natural gas: 74 MMcf/d

Ship Shoal
Block 72
Walker Ridge 95/139

MEXICO

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

4

Venture company(established)

Interest owned(*Operator)

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

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

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

Under exploration(Oil/gas reservoirs conﬁrmed)

UNITED STATES

Cuervito/
Fronterizo
Blocks

Project Overview

Contract area
(block)アメリカ合衆国

INPEX Gulf of Mexico 12.29% Shell* 42.37%
Anadarko* 25％ Other 6.34%(Operator: Anadarko (Block 95); Shell (Block 139))

3 Brazil (Frade Block, Other)
A joint venture established by INPEXand Sojitz Corporation, Frade Japão
Petróleo Limitada (FJPL) acquired aninterest in the Frade Block 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% interest 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. Up to now, the presence ofquality oil and gas deposits has been
conﬁrmed at the same concession asa result of exploratory and appraisal
well drilling. In 2015, the Company
drilled two appraisal wells and is conﬁrming the presence of oil deposits at
one of them.

Contract
area (block)

Project status
Venture company(production on the basis of all fields and average rate of FY2015) (established)

Frade
Project

In production

BM-ES-23

Under exploration (Oil/gas reservoirs conﬁrmed)

Crude oil: 23 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 201629

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.
INPEX also commenced operation at Naoetsu LNG Terminal in December 2013.

Yabase Oil Field

Akita Prefecture

Higashi-Kashiwazaki Gas Field

Naoetsu
LNG Terminal

Sekihara Gas Field(underground storage)
Niigata Cityy

Niigata Marketing
OfficeToyama Line

ToyamaCity

Minami-Aga Oil Field

Kashiwazaki
City

Itoigawa
City

Minami-Kuwayama Oil Field
Nagaoka City

Minami-Nagaoka Gas Field

Joetsu City

ToyamaPrefecture

Shin Oumi Line

Domestic
Natural Gas

Niigata
Prefecture

Domestic Natural Gas /Regasified LNG

Nagano City

Tokyo LineTomi BS*

Matsumoto City

Gunma Prefecture

Fujioka BS*

Shin Tokyo Line
Karuizawa
Town

Matsumoto Line

NaganoPrefecture

Chino City

Kofu Line

Second Suruga Trunk Line
Sodeshi LNG Terminal[Shizuoka Gas]

Shizuoka Shizuoka City
Prefecture
Minamifuji Line

Isesaki Power Control Center

Tomiokam
City
Honjo City

Yamanashi
Prefecture

Showa
S
Town

Ome City

Shizuoka Line

(INPEX, Shizuoka Gas, Tokyo Gas)

Konosuno Cityy

Oil and gas fields

SaitamaPrefecture

Regasified
LNG

Technical Research Center

Natural gas
pipeline network

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

Chiba City

(Kitakarasuyama, Setagaya-ku)
Sam u City
Samm
Sa

Itazuma Power Control Center

Other project

Adachi-ku, Tokyo

Metropolitan
Tokyo

Gotembamb
City
Fuji Ci
City
Cit

Sano City

Iruma Line

Kofu City

Tochigi
Prefecture

Ryomo Line

Major officeNaruto Gas Field

Chiba
Prefecture0

100 kmNatural Gas Business in Japan
In its natural gas business in Japan, thenatural gas produced from the Companyheld Minami-Nagaoka Gas Field (Niigata
Prefecture) as well as the LNG and otherproducts received at the Naoetsu LNG

30

INPEX CORPORATION Annual Report 2016

Terminal (Niigata Prefecture), which
commenced operations in December
2013, are transported through a trunk
pipeline network of approximately
1,400 km stretching across the Kanto

and Koshinetsu regions, and sold tocustomers 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 sharp rises in the prices of competing fuels, as well as the highly environmentally friendly attributes of natural 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 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 over the 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 begin
operations in mid-2016. Also, in thelead-up to the full deregulation of electric power retail sales in April 2016, theCompany commenced electric power
supplies to city gas companies along
its network through Diamond Corpo-

ration, a subsidiary of Chubu ElectricPower Co., Inc., and implemented innovative initiatives relating to its electric
power business.
At the Naruto Gas Field in Chiba
Prefecture, natural gas is being produced from water-soluble gas ﬁelds. In
addition, after extracting the natural gas
from underground water (brine water),the brine water is used to produce
iodine, which is exported to Europe,
the United States and elsewhere.

Echigo LineSea ofJapan

Sekihara Gas Field(underground storage)

MitsukeCity

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

2015/3 2016/ 3

17.5

Natural gas pipeline crossing a river(Shibumi River, Niigata Prefecture)

4

Power Generation Business in JapanIn 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.

Geothermal Development

Geothermal power is the generationof electricity with turbines poweredby steam produced from the thermalenergy of magma underground.
With a view toward geothermal
power generation, INPEX and Idemitsu
Kosan Co., Ltd., commenced jointly
conducting geothermal surveys in the
Amemasudake region of Hokkaido Prefecture and the Oyasu region of Akita
Prefecture in 2011. Joined by Mitsui
Oil Exploration Co., Ltd., in 2012, andthe companies undertook geothermal
resource surveys by drilling of a total offour survey wells in the Amemasudake
region and four more survey wells in
the Oyasu region from 2013 to 2015.
In ﬁscal 2016, we plan to continue
conducting geothermal resource surveys by drilling at one of the Amemasudake survey wells and at two 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, the plan is for the

Project Overview

Renewable Energy and Other Initiatives
Company to drill two survey wells in the
Bandai region in 2016.
Moreover, INPEX took steps toparticipate in the Sarulla Geothermal
Independent Power Producer (IPP)
Project in Indonesia from June 2015.
The project involves constructing aworld-class geothermal power plant,with a capacity of around 330 MW, in
the Sarulla Geothermal Field locatedin the island province of North Sumatra, 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. The Company is aiming for the progressive startof commercial operations from 2016.

Sarulla Geothermal IPP Project

INPEX CORPORATION Annual Report 201631