Financial results for the six months ended June 30, 2021

Appendix
INPEX CORPORATION
August 11, 2021

Subsidiaries and Affiliates

60 Consolidated Subsidiaries
Ownership

Phase

Accounting Term

INPEX Sahul, Ltd.

Major Subsidiaries

Timor‐Leste

Country / Region

100%

Production

December

INPEX Ichthys Pty Ltd

Australia

100%

Production

December

INPEX Oil & Gas Australia Pty Ltd

Australia

100%

Production

December

51%

Production

December

INPEX Southwest Caspian Sea, Ltd. Azerbaijan
INPEX North Caspian Sea, Ltd.

Kazakhstan

51%

Production

DecemberJapan Oil Development Co., Ltd.

UAE

100%

Production

December

JODCO Onshore Limited

UAE

51 %

Production

December

JODCO Lower Zakum Limited

UAE

100%

Production

December

INPEX Eagle Ford, LLC

United States

100%

Production

December

Ownership

Phase

Accounting Term

19 Equity Method Affiliates
Major Affiliates

Country / Region

Ichthys LNG Pty Ltd

Australia

66.245%

Production

December

MI Berau B.V.

Indonesia

44%

Production

DecemberAngola Block 14 B.V.

Angola49.99%

Production

December

Copyright © 2021 INPEX CORPORATION. All rights reserved.

1

Segment Information
 For the six months ended June 30, 2021 (January 1, 2021 to June 30, 2021)(Millions of yen)
Reportable segments
Japan

Asia &
Oceania

Eurasia(Europe &NIS)

Middle East
& Africa

AmericasTotal

Net sales

57,027

124,72253,910257,40910,489Segment income (loss)

10,44744,282

13,098159,275

4,656

Adjustments *1

Consolidated *2

503,558(5,160)498,397

231,760(8,086)

223,673*1 Adjustments of segment income of ¥(8,086) million are corporate expenses. Corporate expenses are mainly amortization of goodwill and generaladministrative expenses that are not allocated to a reportable segment.
*2 Segment income is reconciled with operating income on the consolidated statement of income.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

2

LPG Sales

2Q FY2020(January ‐ June ’20)

2Q FY2021(January ‐ June ’21)

Net sales (Billions of yen)

1.4

1.4

0.0

3.4%

Sales volume (thousand bbl)

160

174

14

8.5%

Average unit sales price ofoverseas production ($/bbl)

35.13

51.23

16.10

45.8%

Average unit sales price ofdomestic production (¥/kg)

61.35

78.53

17.18

28.0%

Average exchange rate (¥/$)

108.03107.730.30yenappreciation

0.3%
appreciation

2Q FY2020(January ‐ June ’20)

2Q FY2021(January ‐ June ’21)

Change% Change

Sales volume by region (thousand bbl)

Change% Change1

1

0(0.1 thousand ton)

(0.1 thousand ton)(+0.0 thousand ton)

Asia & Oceania

159

173

13

8.4%

Eurasia (Europe & NIS)

‐

‐

‐

‐

Middle East & Africa

‐

‐

‐

‐

Americas

‐

‐

‐

‐

160

174

14

8.5%

Japan

Total

Copyright © 2021 INPEX CORPORATION. All rights reserved.

19.5%

3

Other Income and Expenses

2Q FY2020(January ‐ June ’20)

2Q FY2021(January ‐ June ’21)

Other income

45.3

36.7

(8.6)

(19.1%)

Interest income

0.5

14.4

13.8

‐

Dividend income

5.9

3.4

(2.4)

(41.2%)

Equity in earnings of affiliates

30.7

‐

(30.7)(100.0%)

‐

4.3

4.3

‐

Foreign exchange gain

3.7

‐

(3.7)

(100.0%)

Other

4.4

14.3

9.9

223.1%

Other expenses

19.9

40.5

20.6

103.7%

Interest expense

11.5

6.9

(4.5)

(39.6%)

‐

12.9

12.9

‐

2.2

‐

(2.2)

(100.0%)

‐

10.6

10.6

‐

6.1

9.9

3.7

61.7%

(Billions of Yen)

Gain on reversal of allowance for recoverable
accounts under production sharing

Equity in losses of affiliates
Provision for allowance for recoverable
accounts under production sharing
Foreign exchange loss
Other

Change% Change

Copyright © 2021 INPEX CORPORATION. All rights reserved.

4

EBIDAX
2Q FY2020(January ‐ June ’20)

2Q FY2021(January ‐ June ’21)

Net income(loss) attributable to owners of parent(120,799)

51,982

P/L

Net income (loss) attributable to non‐controllinginterests(655)(8,182)

P/L

107,120

108,892

Depreciation and amortization

88,84877,249C/F Depreciation under concession agreements and G&A

Amortization of goodwill

3,380

3,380

C/F

Recovery of recoverable accounts under
production sharing (capital expenditures)

14,892

28,263C/F Depreciation under PS contracts

6,925(2,090)

4,692

2,281

Gain on reversal of allowance forrecoverable accounts under production
sharing‐(4,371)

P/L Exploration expenses under PS contracts

Provision for allowance for recoverable
accounts under production sharing

2,233

‐

P/L Exploration expenses under PS contracts

175,982

27,908

Income taxes‐deferred(13,147)

17,405

P/L

Foreign exchange loss (gain)(3,320)10,503

C/F

Impairment loss

192,449‐

C/F

Net interest expense after tax

7,877(5,420)176,450

173,090(Millions of yen)

Depreciation equivalent amount

Exploration cost equivalent amount
Exploration expenses

Material non‐cash items

EBIDAX
Copyright © 2021 INPEX CORPORATION. All rights reserved.

Note

P/L Exploration expenses under concession agreements

P/L After‐tax interest expense minus interest income5Analysis of Recoverable Accounts under Production Sharing

2Q FY2020(January ‐ June ’20)

2Q FY2021(January ‐ June ’21)

568,377

575,544

Exploration costs

2,248

553

Development costs

14,744

12,094Mainly ACG, Kashagan and Con Son

Operating expenses

7,650

7,538

Mainly ACG and Kashagan

Other

3,997

1,866

Cost recovery (CAPEX)

14,892

28,263Mainly ACG and Kashagan

Cost recovery (non‐CAPEX)

8,669

7,896

Mainly ACG and Kashagan‐‐

Balance at end of the period

573,456

561,437

Less allowance for recoverable accounts under
production sharing at end of the period

69,10865,072(Millions of yen)
Balance at beginning of the period
Add:

Less:

Other

Note

Mainly Iraq Block10

Mainly Kashagan

Copyright © 2021 INPEX CORPORATION. All rights reserved.

6

Net Income Sensitivities
 Sensitivities of crude oil price and foreign exchange fluctuation on consolidated net
income attributable to owners of parent for the year ending December 31, 2021*1(Billions of yen)

At Beginning of 1Q : +6.6 (‐6.6)
Brent Crude Oil Price;$1/bbl increase (decrease)*2
Exchange Rate; ¥1 depreciation (appreciation)
against the U.S. dollar*3

The impact on net income will change in FY2021 as below;
At beginning of 2Q : +4.6 (‐4.6)
At beginning of 3Q : +2.4 (‐2.4)
At beginning of 4Q : +1.0 (‐1.0)+2.0 (‐2.0)*1 The sensitivities calculated at the beginning of the fiscal year (January 2021) represent the impact on net income for the year ending December 31, 2021 against a$1/bbl increase (decrease) in the Brent crude oil price on average and a ¥ 1 depreciation (appreciation) against the U.S. dollar. These are based on the financial
situation at the beginning of the fiscal year and are for reference purposes only. The actual impact may change due to fluctuations in production volumes, capital
expenditures and cost recoveries, and may not be constant, depending on crude oil prices and exchange rates.
*2 Net income sensitivity is determined by fluctuations in the oil price and is subject to the average price of crude oil (Brent). A breakdown of quarterly sensitivity
figures is listed below taking into consideration certain natural gas sales applying oil prices on a delayed basis; At beginning of 1Q : +6.6 billions of yen (1Q : +1.0 billions of yen, 2Q : +1.2 billions of yen, 3Q : +2.2 billions of yen , 4Q : +2.2 billions of yen)
 At beginning of 2Q : +4.6 billions of yen (1Q : －－－－－－－－ , 2Q : +1.0 billions of yen, 3Q : +1.4 billions of yen , 4Q : +2.2 billions of yen)
 At beginning of 3Q : +2.4 billions of yen (1Q : －－－－－－－－ , 2Q : －－－－－－－－ , 3Q : +1.0 billions of yen , 4Q : +1.4 billions of yen)
 At beginning of 4Q : +1.0 billions of yen (1Q : －－－－－－－－, 2Q : －－－－－－－－ , 3Q : －－－－－－－－ , 4Q : +1.0 billions of yen)
*3 This is a sensitivity on net income determined by fluctuation of the yen against the U.S. dollar and is subject to the average exchange rate. On the other hand,sensitivity related to the valuation of assets and liabilities denominated in the U.S. dollar on net income incurred by foreign exchange differences between theexchange rate at the end of the fiscal year and the end of the previous fiscal year is largely neutralized.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

7

Sales and Investment Forecasts
for the Year ending December 31, 2021
Forecasts as ofFebruary 10, 2021

Forecasts for the year ending
December 31, 2021

Forecasts as ofAugust 10, 2021

(Reference)

ChangeHalf‐year results

111,732

117,415

5,683

55,454Natural gas (million cf) *2

481,431473,018(8,412)203,293(Sales outside of Japan)

402,758

392,758(9,999)160,631(Sales in Japan)

78,673(2,108 million m3)

80,260(2,151 million m3)

1,587(43 million m3)

42,663(1,143 million m3)

511

785

274

174

Development expenditure*4

231.0

235.0

4.0

81.9

Exploration expenditure

16.0

15.0

(1.0)

2.8

8.0

7.0

(1.0)

Sales Volume

Crude oil (thousand bbl) *1

LPG (thousand bbl)*3(Billions of yen)

Other capital expenditure
Exploration expenses
14.0

Exploration expenses and Provision for
explorations*5

Provision for explorations
2.4(Non‐controlling interest portion)*6

16.5

Exploration expenses
12.6
Provision for explorations
2.5

6.8

15.2

(1.3)

5.3

(1.5)

2.7
Exploration expenses
2.2
Provision for explorations
0.5

2.7
0.0

*1 CF for domestic crude oil sales and petroleum products : 1kl=6.29bbl*2 CF for domestic natural gas sales : 1m3=37.32cf*3 CF for domestic LPG sales : 1t=10.5bbl*4 Development expenditure includes investment in Ichthys downstream and acquisition costs*5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects”, related to exploration activities*6 Capital increase from Non‐controlling interests, etc.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

8

Net Production (January to June 2021)
Oil, Condensate and LPG
2% 1%

7

14%

528 thousand BOE/day

316 thousand BOE/day

3
44

3%

Japan

16%

Asia/Oceania

50
67%

Oil and Gas Total

5%

15 24

Eurasia
Middle East/Africa

212

Americas212

Natural Gas
2%

25

4%

42

10%

112

223

1,101 million cf/day(212 thousand BOE/day)

42%
Japan
Asia/Oceania

40%

54

Eurasia
Middle East/Africa

Japan

10%

AmericasAsia/Oceania

922
84%

Eurasia
Americas* The production volume under the production sharing contracts corresponds to the net economic take of the INPEX Group.
* Revised net production volume outlook for FY2021: 571 thousand BOE/day(Outlook at the beginning of FY2021: 559 thousand BOE/day, outlook at the end of Q1: 570 thousand BOE/day)
Copyright © 2021 INPEX CORPORATION. All rights reserved.

9

Project Information

Major Assets in Production & Development

Sakhalin 1
North Caspian Sea Block(Kashagan Oil Field, etc.)
ACG Oil Fields
Abu Dhabi Offshore Oil
FieldsAbu Dhabi Onshore
Concession
Offshore D.R.
Congo BlockTight Oil Project in US(Eagle Ford shale play)
Minami‐Nagaoka
Gas Field

Lucius/Hadrian North Fields
in the U.S. Gulf of Mexico

05‐1b/05‐1c (Sao Vang and Dai
Nguyet Gas Field)
Sebuku Block (Ruby Gas Field)
Berau Block (Tangguh Unit)

Offshore Angola Block 14

Abadi LNG Project

WA‐35‐L(Van Gogh Oil Field)

TL‐SO‐T 19‐12(Bayu‐Undan Oil & Gas Field)

WA‐35‐L/WA‐55‐L(Coniston Oil Field)

Prelude FLNG Project
Ichthys LNG Project

WA‐43‐L(Ravensworth Oil Field)

In Production
Copyright © 2021 INPEX CORPORATION. All rights reserved.

Preparation for Development
11Natural Gas Business in Japan
 Production Volume*1Natural gas: approx. 2.8 million m3/d(106 million scf/d)Crude oil & condensate: approx. 3 thousand bbl/d

 Natural Gas Sales*2
Niigata

Naoetsu LNG Terminal
Minami Nagaoka
Gas Field

Shin Oumi Line

Gunma

Toyama

FY 2020/12: 2.07 billion m3



FY 2021/12 first half: 1.14 billion m3

Distribution outlook: 2.50 billion m3 per year in
the first half of the 2020s, 3.00 billion m3 per year
in the long‐term

Tochigi

Shin Tokyo Line

Toyama Line

Ryomo Line

Tokyo Line Global Gas Value Chain

Matsumoto Line

Saitama

Iruma Line

NaganoYamanashi

Kofu Line(Shizuoka Gas)

Started commercial operations at Naoetsu LNG
Terminal in December 2013

Toyama Line completed in June 2016

First Ichthys LNG cargo arrived at Naoetsu LNG
Terminal in October 2018

Tokyo

Shizuoka Line
Second Suruga Trunk Pipeline



Chiba

Minamifuzi Line
(INPEX, Shizuoka Gas, Tokyo Gas)

Sodeshi LNG Terminal
Shizuoka

50km

0*1 Average daily production volume for April to June 2021

Pipeline*2 1m3 =41.8605MJ

Copyright © 2021 INPEX CORPORATION. All rights reserved.

12

Sebuku Block (Ruby Gas Field)
INPEX South Makassar, Ltd.

 Participating Interest: 15%(Operator : PEARLOIL (Mubadala)) PSC: Until September 21, 2027

Makassar Strait Production Volume*1

West Papua
Jawa
Kalimantan

Gas Field

Sebuku Block

Sulawesi

Ruby Gas Field

Natural Gas*2: approx. 96 million cf/d

 Milestones


Farmed‐in in September 2010

Made FID in June 2011

Production commenced in October 2013

Block
0

100km

*1 Average daily production volume for June 2021 on the basis of all fields.
*2 Gas volume sold to buyers.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

13

Berau Block (Tangguh LNG Project)
MI Berau B.V. / MI Berau Japan Ltd.

 Participating Interest: 7.79% (INPEX net)
(Tangguh Unit) (Operator: BP) PSC: Until December 31, 2035
 Production Volume*1

Kalimantan

West Papua Province(Indonesia)

Sulawesi
Jawa

Condensate: approx. 6 thousand bbl/d

Natural Gas*2: approx. 1,153 million cf/d

 LNG Production Capacity: 7.6 Mtpa
 Milestones
Berau Block

LNG sales commenced in July 2009

Made FID for an expansion project to add a third

Gas Field

LNG train with a 3.8 million ton per year

Block

production capacity in July 2016, currently underconstruction

Kaimana50km

0*1 Average daily production volume for June 2021 on the basis of all fields.
*2 Gas volume sold to buyers.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

14

Blocks 05‐1b and 05‐1c (Sao Vang and Dai Nguyet Gas Field)
INPEX Con Son Co., Ltd.

 Participating Interest: 36.92%(Operator: Idemitsu Gas Production(Vietnam)) PSC: Until November 17, 2034
 Expected Production Volume

Cambodia
VietnamThailand

Malaysia

Sao Vang and Dai
Nguyet Gas Field

Gas: approx. 1.5 billion m3 per annum

Crude oil & condensate: approx. 2.8 million
barrels per annum Milestones
February 2011: Successful drilling of exploration
well

Gas Field
Block

Blocks 05‐1b & 05‐1c0June 2013: Discovery of gas and condensateAugust 2014: Further discovery of gas andcondensate

10km



February 2018: Final Investment DecisionNovember 2020: First sales gas delivered topipeline from Sao Vang Gas Field
Copyright © 2021 INPEX CORPORATION. All rights reserved.

Dai Nguyet Gas Field under development
15

TL‐SO‐T 19‐12 Block (Bayu‐Undan Gas and Condensate Field)
INPEX Sahul, Ltd.

 Participating Interest: 11.378120%(Operator: Santos)
 PSC: Until February 6, 2022*1
 Production volume*2Oil Field
Indonesia

Gas Field

Australia

Block Milestones

PipelineAustralia

Kitan Oil Field

TL‐SO‐T 19‐12 Block
TL‐SO‐T 19‐13 BlockBayu‐Undan Gas andCondensate Field
Darwin0

Condensate: approx. 8 thousand bbl/d
LPG: approx. 5 thousand bbl/dNatural Gas *3 : approx. 513 million cf/d

50km



The map includes provisional maritime boundaries

In February 2004, commenced sales ofcondensate and LPG
In August 2005, entered into an LNG Sales
Contract with JERA (former TEPCO) and Tokyo
Gas
In February 2006, commenced LNG shipments
In August 2019, in light of the delimitation of themaritime boundaries between Australia andTimor‐Leste, INPEX entered into a new PSC
with the government of Timor‐Leste. The projectwill continue to be operated under terms
equivalent to the previous arrangements.
Three Infill Phase 3C wells commenced drillingfrom 2Q 2021 and commenced production from
3Q 2021.

*1 PSC will be automatically extended until the end of 2022 under the right circumstances.
*2 Average daily production volume for June 2021 on the basis of all fields.
*3 Gas volume sold to buyers.
Copyright © 2021 INPEX CORPORATION. All rights reserved.

16

Van Gogh, Coniston and Ravensworth Oil Fields
INPEX Alpha, Ltd.
Van Gogh Oil Field (WA‐35‐L) andConiston Oil Field (WA‐35‐L / WA‐55‐L)
WA‐55‐L BlockAustralia

Coniston Oil Field
WA‐35‐L Block

Van Gogh Oil Field
Ravensworth Oil Field

WA‐43‐L Block

Onslow

Note: Production temporarily suspended for scheduled
maintenance from March 2020 to March 2021

Australia
Oil Field
Block

Exmouth050km

Ravensworth Oil Field (WA‐43‐L)* Average daily production volume for June 2021 on the basis of all fields.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

Participating Interest: 47.499% (Operator: Santos)
Concession Agreement: Valid until end of production
Production volume*: Crude oil: approx. 5 thousand bbl/dMilestones
 In February 2010, oil production commenced at
the Van Gogh Oil Field In May 2015, oil production commenced at theConiston Oil Fields
 In July 2016, oil production commenced at theNovara Structure within Coniston Oil Fields
 In January 2019, production commenced fromthe Infill wells at the Van Gogh Oil Field Three Infill phase 2 wells at the Van Goghcommenced drilling from 2Q 2021 andcommenced production from 3Q 2021.

Participating Interest: 28.5% (Operator: BHP)
Concession Agreement: Valid until end of production
Production volume*: Crude oil: approx. 3 thousand bbl/dMilestones
 Production commenced in August 201017

Prelude FLNG Project
INPEX Oil & Gas Australia Pty Ltd

EasttimorParticipating Interest: 17.5%(Operator: Shell)Concession Agreement: Valid until end of production

Production Capacity
 LNG*: 3.6 million ton per year
 LPG: 0.4 million ton per year at peak
 Condensate: Approx. 1.3 million ton per year atpeak

Milestones
 Made FID in May 2011
 Wells opened and initial phase of productioncommenced in December 2018
 1st Condensate cargo shipped from FLNG in
March 2019 1st LNG cargo shipped in June 2019 1st LPG cargo shipped in July 2019

Prelude Gas Field
Concerto Gas Field
Australia

WA‐44‐L Block

Gas Field
Ichthys

Block
40km

0

Note: Production was temporarily suspended for maintenance inFebruary 2020. Cargo shipments resumed in January 2021.

* LNG sales and purchase agreements in place with JERA (approx. 0.56 MTPA)
and Shizuoka Gas (approx. 0.07 MTPA) respectively covering INPEX’s equity
portion of the project’s LNG output (approx. 0.63MTPA)
Copyright © 2021 INPEX CORPORATION. All rights reserved.

18

Ichthys LNG Project Overview
JERA (former Tokyo
Electric Power
portion) 1.05 mtpa

 Participating Interest : 66.245% (Operator)
Tokyo Gas
1.05 mtpa

 Production volume*1 Upstream condensate: approx. 36 thousand b/dUpstream natural gas*2: approx. 853 million cf/d

 Shipped cargoes from production start‐up to June 2021

INPEX 0.90 mtpa






Kansai Electric0.80 mtpa

LNG: 284 (47 in first half of 2021)
Onshore condensate (LNG plant): 51 (9 in first half of 2021)
Offshore condensate (FPSO): 80 (13 in first half of 2021)
LPG: 76 (13 in first half of 2021)

CPC Corporation,
Taiwan 1.75 mtpa

TOTAL 0.90
mtpa

Osaka Gas 0.80 mtpa

 Production overviewProject Life: Approx. 40 years
Approx. 8.9 million ton per year of LNG(Production Capacity)
Approx. 1.65 million ton per year of LPG(Production Capacity)
Approx. 100,000 bbl/d of condensate (at peak) Proved reserves
 Approx. 1,011 million BOE (based on INPEX’s participatinginterest of 66.245%)

 Participating interests in multiple exploration blocks
nearby providing future development potential
 Marketing Secured LNG SPAs covering 8.4 million ton per year of LNG
 Approx. 70% of the LNG delivered to Japanese buyers
 Secured LPG SPA covering INPEX share*1 Average daily production for April to June 2021
*2 Gas volume sold to the downstream entity (Gas provided from upstream to the
LNG plant as a raw material to make products such as LNG, LPG and plantcondensate)
Copyright © 2021 INPEX CORPORATION. All rights reserved.

JERA (former Chubu
Electric Power
portion) 0.49 mtpa

Toho Gas 0.28 mtpa
Kyushu Electric Power 0.30 mtpa

 Project Financing
 US$ 20 billion project financing agreements with ECAs andmajor commercial banks completed in December 2012
 Concluded a refinancing of approx. 8.3 billion US dollars inJune 2020

 Major EPC contracts
 Upstream••••

CPF: Samsung Heavy Industries
FPSO: Daewoo Shipbuilding & Marine Engineering
Subsea Production System (SPS): GE Oil & Gas
Umbilical, Riser and Flowline (URF): McDermott Downstream••••

Onshore LNG Plant: JGC, Chiyoda and KBR
Gas Export Pipeline: Saipem, Mitsui Corporation, Sumitomo Corp
oration and Metal One Corporation
Dredging in Darwin Harbour: Van Oord
Instrumentation & Control System: Yokogawa Electric19Ichthys LNG Project Production Facilities

LNG, LPG, Condensate

Condensate

Offtake Tanker

Central Processing Facility

Onshore LNG Plant (Darwin)

FPSO

Flexible Riser
Upstream

Downstream

Gas Export Pipeline

Flowlines

Subsea Production System

Copyright © 2021 INPEX CORPORATION. All rights reserved.

20

Ichthys LNG Project
Timeline from FID until Commencement of Production

 Timeline since Final Investment Decision (FID)Key Milestone
FID(Offshore facilities / Production wells)•Steel cutting ceremony for CPF and FPSO•Start‐up of CPF and FPSO assembly work
•FPSO hull launch•Completion of gas export pipelay•Commencement of drilling of production wells•Completion of installation of subsea flowlines•Completion of CPF and FPSO sail away, mooring and hook‐up•Start‐up of CPF and FPSO commissioning•Completion of commissioning of all key offshore facilities(Onshore facilities)•Groundbreaking ceremony of LNG plant in Darwin•Commencement of construction on modules, jetties and tanks•Completion of dredging in Darwin Harbour•Completion of production loading jetty•Completion of construction and delivery of LNG plant modules•Completion of hydrostatic testing on all product tanks•Start‐up of power generation facilities•Completion of commissioning of all key onshore facilities(Overall project)•Acquisition of production license / project financing agreements•Arrangement of insurance for facilities during construction period•Contracts signed for construction, ownership and time charter of LNG tankers•50% project completion•LNG production capacity increased from 8.4 to 8.9 million ton per year
•Agreement in principle with Astomos Energy Corporation on sales of LPG•Naming ceremonies for LNG tanker to supply Naoetsu LNG Terminal and CPC Corporation
Commencement of gas production from the wellhead
Commencement of shipment of condensate, LNG and LPG
Copyright © 2021 INPEX CORPORATION. All rights reserved.

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Ichthys LNG ProjectCentral Processing Facility (CPF)

Copyright © 2021 INPEX CORPORATION. All rights reserved.

22

Ichthys LNG Project
Floating Production Storage and Offloading (FPSO)

Copyright © 2021 INPEX CORPORATION. All rights reserved.

23

Ichthys LNG Project
Onshore Gas Liquefaction Plant

Copyright © 2021 INPEX CORPORATION. All rights reserved.

24

Exploration Blocks in the Vicinity of Ichthys LNG Project
As of July 2021

 INPEX holds participating interests in 17 exploration blocks in the vicinity of the Ichthys
LNG Project. To date, multiple gas reservoirs have been discovered including Crown,
Lasseter, Mimia and Burnside. These gas reservoirs extend across at least 9 blocks.
 Land secured for possible additional LNG processing trains in Darwin.
Copyright © 2021 INPEX CORPORATION. All rights reserved.

25

Abadi LNG Project Participating Interest: 65% (Operator)
 PSC: Until 15 November, 2055
（Signed extension in October 2019)
 Production Capacity
Tanimbar Islands
Abadi Gas Field
Australia

Block

Darwin0

Approx. 9.5 million tons of LNG per year
Up to 150 million standard cubic feet of natural gas
per day supply via pipeline

Up to approx. 35,000 barrels of condensate perday MilestonesGas Field

Total output of natural gas 10.5 million tons per
year (LNG equivalent) including；••Indonesia

Masela Block

Easttimor



Saumlaki200km



Map includes provisional maritime boundaries

The project was listed as a national strategic
project in June 2017 and as a priority
infrastructure project in September 2017 by theIndonesian government.
In July 2019, Indonesian authorities approved therevised plan of development based on an
onshore LNG development scheme.
In February 2020, INPEX signed an MoU with PT
PLN and with PT Pupuk Indonesia, eachconcerning long‐term domestic gas supply.
In December 2020, INPEX signed an MoU withPT Perusahaan Gas Negara Tbk (PGN)
concerning domestic LNG supply.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

26

Abadi LNG Project Term of the Production Sharing Contract (PSC)

From November 16, 1998 to November 15, 2055
PSC amendment and extension agreements signed in
October 2019, extending the PSC from 2028 to 2055

Sufficiently Strong Project Economics








PSC term secured until 2055
Excellent reservoir productivity enabling efficientdevelopment
Confirmed sufficient reserves enabling production of 9.5
million tons of LNG per year and local gas supply via
pipeline for more than 20 years
Sufficient financial conditions secured through three
economic incentives (exemption of indirect tax, applicationof investment credits and introduction of incremental profit
sharing after tax.)

Schedule








Suspension of detailed survey work at and around theplanned plant construction site due to the spread of
COVID‐19
Plans to consider ways to realize the project in line with thechanging external environment through initiatives
including introduction of CCS/CCUS
10% participating interest will be transferred to an
Indonesian participant to be designated by the Indonesian
government in accordance with PSC conditions
Pursuing efficient development leveraging the expertiseand experience acquired through the Ichthys LNG Project

Copyright © 2021 INPEX CORPORATION. All rights reserved.

Abadi LNG Project Development Concept27

ACG Oil Fields
INPEX Southwest Caspian Sea, Ltd.

 Participating Interest: 9.3072%*1(Operator: BP) PSA: Until 2049*2
 Production volume*3 :Caspian Sea

Azerbaijan

Crude oil: approx. 484 thousand bbl/d

 Milestones

Baku

ACG Oil Fields



Deepwater Gunashli Field
Chirag Field



Azeri Field

Kazakhstan
RussiaUzbekistan

Oil Field

Azerbaijan

Block

Turkmenistan



Pipeline
Iran

50km

0



Started oil production in the Chirag Field in 1997
Started oil production in the central section of
the Azeri Field in February 2005
Started oil production in the western section of
the Azeri Field in December 2005
Started oil production in the eastern section of
the Azeri Field in October 2006
Started oil production in the Deepwater
Gunashli Field in April 2008
Started oil production in the western section of
the Chirag Field in January 2014
Azeri Central East project FID was signed in
April 2019.

*1 INPEX’s participating interest has changed to 9.3072% as a result of theextension and amendment of the PSA effective January 1, 2018.
*2 The extension of the PSA until 2049 was agreed in 2017.
*3 Average daily production volume for January to March 2021 on the basisof all fields
Copyright © 2021 INPEX CORPORATION. All rights reserved.

28

Kashagan Oil Field and others
INPEX North Caspian Sea, Ltd.

Kazakhstan

Kairan Structure

North Caspian Sea
Caspian Sea

 Participating Interest: 7.56% (Operator:
NCOC (North Caspian Operating
Company)) PSA: Until the end of 2031* (Kashagan) Milestones

Oil shipments at Kashagan Oil Field commencedin October 2016



Reached target production volume of 370,000
bbl/d. Production operations ongoing targeting
450,000 barrels per day
Agreed with the Kazakhstan government on
extending the evaluation period of the

Aktote Structure

Kashagan Oil Field
Russia

Kazakhstan

TurkeyOil Field

China
Iran

Gas Field

India

Aktote/Kairan structures by five years andcontinuing development scenario studies.

Block* Current PSC provide options to extend the contract period by 10 years twice(until 2041)

Copyright © 2021 INPEX CORPORATION. All rights reserved.

29

BTC (Baku‐Tbilisi‐Ceyhan) Pipeline Project
INPEX BTC Pipeline, Ltd.

 Participating Interest: 2.5%
(Operator : BP) Oil export volume*:

Russia

RussiaBlack
SeaTurkeyCaspian Sea

Georgia
Tbilisi MilestonesBaku
Armenia
Azerbaijan

BTC Pipeline

Turkey
Iran

CeyhanMediterranean
Sea
Cyprus

Syria



200km

0



Iraq
Pipelineapprox. 570 thousand bbl/dAcquired a 2.5% participating interest in theoperating company (BTC Co.) through INPEXBTC Pipeline, Ltd. in October 2002
Commenced crude oil export in June 2006 from
Ceyhan terminal
Completed 1.2 million bbl/d capacity expansion
work in March 2009
Cumulative export volume reached 1,000 million
bbls on September 13, 2010
Cumulative export volume reached 2,000 million
bbls on August 11, 2014
Cumulative export volume reached 3,000 million
bbls on July 17, 2018

* Average transportation volume for January to March 2021

Copyright © 2021 INPEX CORPORATION. All rights reserved.

30

Sakhalin‐1
Sakhalin Oil and Gas Development Co., Ltd.

 Sakhalin Oil and Gas Development Co.,
Ltd. (SODECO)’s participating interest in
Sakhalin‐1: 30%

RussiaPeopleʹs Republicof China

 INPEX’s share in SODECO: approx. 6.08%
Russia Operator: Exxon Neftegas Limited (ENL)
Sakhalin Island Milestones

Peopleʹs Republicof China
Hokkaido
0200km

Copyright © 2021 INPEX CORPORATION. All rights reserved.

Commenced production from Chayvo in October
2005; commenced crude oil export in October 2006
Commenced production from Odoptu in
September 2010
Commenced production from Arkutun‐Dagi inJanuary 2015
Currently supplying natural gas to Russian
market31

INK Project, East Siberia
Japan South Sakha Oil Co. Limited

 Japan South Sakha Oil Co. Limited(JASSOC)’s shares held in Joint Stock
Company INK‐ZAPAD: 49%

RussiaRussiaYakutsk INPEX’s share in JASSOC: 24.998%

Zapadno‐Yaraktinskiy Block

Peopleʹs Republicof China

 Operator : INK‐ZAPAD
 License agreement: 25 years (Until 2031)

Boloshetirskiy Block
Taishet Production volume*:

Skovorodino
Lake Baikal



Irkutsk

Crude oil: approx. 54 thousand bbl/d

 Milestones
Daqing

Mongolia
Vladivostok
Block

Commenced production from the Ichyodinskoye
Oil Field in November 2014

Peopleʹs Republicof China
500km

0* Average daily production volume for June 2021 on the basis of all fields

Copyright © 2021 INPEX CORPORATION. All rights reserved.

32

Block 10, Iraq (Eridu Oil Field)
INPEX South Iraq, Ltd.

 Participating Interest: 40%(Operator: LUKOIL)
 Block acquired: December 2012
(Republic of Iraq 4th Licensing Round)
Turkey EDPSC*1

Iraq



Iran

Iran


Saudi Arabia

 Milestones

BaghdadWest Qurna Oil Field*
Gharraf Oil Field*
Saudi Arabia

Nasiriyah Oil Field*
Basra

Oil Field
Block

Eridu Oil Field (Block 10)
Rumaila Oil Field*

0

100km

Exploration Period: 9 years (Until December 2,2021)*2
Development and Production Period: 20years*3



Oil deposits were discovered through the first
exploratory drilling conducted in February 2017.
Thereafter, the extent of the deposits was
confirmed by appraisal wells drilled in 2017.
As the deposits most likely extend beyond theContract Area, an extension application for theContract Area was submitted and approved in
November 2017.
Exploration and evaluation work is underway to
study the possibility of commercial development.

* INPEX does not participate in these fields*1 Exploration, Development and Production Service Contract*2 Exploration Period has been extended by 4 years for further exploration
and appraisal works to be conducted, in accordance with the EDPSC*3 The current service contract provides the option to extend theDevelopment and Production Periods by 5 years
Copyright © 2021 INPEX CORPORATION. All rights reserved.

33

Norwegian Continental Shelf Projects
INPEX Norge ASPL1016, Northern Norwegian Sea
 Participating Interest: 40%(Operator: OMV Norge AS)
 Block Acquisition: March 1, 2019
 Concession Agreement•
Exploration and Appraisal Period: 7 years (to 2026)•
Development and Production Period: 25 years
 License awarded in January 2019
 Completed 3D‐seismic data processing, and conducting
interpretation for DoD (Drill or Drop)

PL1027, Western Barents Sea
 Participating Interest:20%(Operator: Lundin Norway AS)
 Block Acquisition: March 1, 2019
 Concession Agreement•
Exploration and Appraisal Period: 8 years (to 2027)•
Development and Production Period: 25 years
 License awarded in January 2019
 Exploratory well 7221/4‐1 in 2020.
 Conducting post‐drilling evaluation.



PL1129, North‐western Norwegian Sea
 Participating Interest:30%(Operator: Wintershall Dea Norge) Block Acquisition: January 19, 2021
 License awarded in January 2021



PL1130, Northern Norwegian Sea
 Participating Interest:60%(Operator)
 Block Acquisition: January 19, 2021
 License awarded in January 2021

Awards in Predefined Areas (APA)
Barents sea

Block

Norwegian sea

PL1129

PL1130SwedenFinland
NorwayRussiaPL1016
Awards inPredefined
Areas (APA)

Norwegiansea
Awards inPredefined
Areas (APA)

Barentssea

PL1027

NorwayNorway0200km

Sweden

0200km

FinlandCopyright © 2021 INPEX CORPORATION. All rights reserved.

34

Abu Dhabi Offshore Oil Fields
Japan Oil Development Co., Ltd. (JODCO) / JODCO Lower Zakum Limited

 Upper Zakum Oil Field (JODCO)Participating Interest: 12%(Operator: ADNOC Offshore)
Das Island

Upper / Lower Zakum Oil Fields
Satah Oil Field Lower Zakum Oil Field(JODCO Lower Zakum Limited)

Zirku Island

Concession agreement: Until 2051

Participating Interest: 10%(Operator: ADNOC Offshore)

Abu Dhabi

Umm Al‐Dalkh Oil Field

Iran



Concession agreement: Until 2058

 Satah/Umm Al Dalkh oil fields
Saudi Arabia

Oil Field
Pipeline

United Arab Emirates(JODCO)Participating Interest: 40%(Operator: ADNOC Offshore)Copyright © 2021 INPEX CORPORATION. All rights reserved.

Concession agreement: Until 2043

35

Abu Dhabi Onshore Concession
JODCO Onshore Limited

Abu Dhabi
Al Dabb‘iya Field

Jumaylah Field
Uwaisa Field

Shanayel Field

Arjan Field

Bab Field

Bida Al‐Qemzan Participating interest: 5%(Operator: ADNOC Onshore*)

Rumaitha Field

Sahil Field

Field
Bu Hasa Field

United Arab Emirates

 Concession agreement: Until 2054

Asab Field

Huwailla Field* Operating company owned by companies with participating interests.
JODCO Onshore Limited has a 5% share in the operating company.

Iran

Qusahwira Field
Shah Field
Oil Field

Saudi Arabia

Pipeline

Mender Field

Copyright © 2021 INPEX CORPORATION. All rights reserved.

36

Abu Dhabi Onshore Block 4
JODCO Exploration Limited

Iraq

Iran

Saudi Arabia
Oman Participating interest: 100%
(Operator: JODCO Exploration Limited)Onshore Block 4
Abu Dhabi City Block surface area: approx. 6,116 square
kilometers

Saudi Arabia

United Arab Emirates

Block
0

Oman

100km

Copyright © 2021 INPEX CORPORATION. All rights reserved.

37

Offshore D.R. Congo Block
Teikoku Oil (D.R. Congo) Co., Ltd.

D.R. Congo

Motoba Participating Interest: 32.28%(Operator: Perenco)

Lukami Concession Agreement: 1969‐2043

MibaleMwanbe Production started in 1975

Misato
Moko

Libwa

Lubi

Muanda Production volume*:

TshialaGCO

Crude oil: approx. 15 thousand bbl/dBananaOffshore D.R. Congo Block
Oil Field
Block* Average daily production volume for June 2021 on the basis of all fields
Soyo

Atlantic Ocean

Copyright © 2021 INPEX CORPORATION. All rights reserved.

38

Offshore Angola Block 14
INPEX Angola Block 14 Ltd.

 Participating Interest: 9.998%(Operator: Chevron)Rep. of
Congo

D.R. Congo PSC:

TL DA: Until 2028
(Kuito DA and BBLT DA were merged into TL DA)Offshore Angola Block 14

Oil Field

Republic ofAngolaLianzi: Until 2031

 Production volume*:

Crude oil: approx. 54 thousand bbl/dAtlantic Ocean

Block
0

100km

* Average daily production volume for June 2021 on the basis of all fields

Copyright © 2021 INPEX CORPORATION. All rights reserved.

39

Gulf of Mexico Projects
INPEX Americas, Inc. / INPEX E&P Mexico, S.A. de C.V., otherLucius & Hadrian North Oil Fields(INPEX Americas, Inc. )




Texas



Louisiana

Keathley Canyon Blocks
874/875/918/919(Lucius Field and Hadrian
North Field)
R1.4 Block 3 (Perdido)
Cuba
MexicoR2.4 Block 22 (Salina)R1.4 Block 3 (Perdido), Mexican Gulf of Mexico（INPEX E&P Mexico PB‐03, S.A. de C.V.）

1,000km0

License Agreement (In Exploration)
Participating interest: 33.3333%(Operator: Chevron)R2.4 Block 22 (Salina), Mexican Gulf of Mexico（INPEX E&P Mexico, S.A. de C.V.）*1 Average daily production volume for June 2021 on the basis of all fields.
*2 Gas volume sold to buyers.

Lease Agreement
Participating Interest: 10.10769%(Operator : Occidental)
Production volume*1•
Crude Oil: approx. 41 thousand bbl/d•Natural Gas*2: approx. 35 million cf/d
Milestones•
Production of crude oil and natural gas started in
January 2015•
Revised Unit Participating Agreement (UPA) on
unitization reached in September 2017 between
project partners of Lucius Oil Field and Hadrian
North Oil Field located south of Lucius•
Production from Hadrian North started in April
2019•
Buckskin tie‐in to Lucius SPAR started in June 2019•
Acquired a portion of the Participating Interest
held by ExxonMobil in February 2021

License Agreement (In Exploration)
Participating interest: 35% (Operator: Chevron)

Copyright © 2021 INPEX CORPORATION. All rights reserved.

40

Tight Oil Project in Texas, US
INPEX Eagle Ford, LLC

DallasSan Antonio

GonzalesHoustonWilsonAtascosaKarnesParticipating Interest: 100% (Operator*1)
Lease Agreement
Acreage: approx. 9,000 net acres(approx. 36 square kilometers)
Production volume*2:
 Crude Oil: approx. 3 thousand bbl/d
 Natural Gas: approx. 5 million cf/d
Milestones
 Acquired multiple development and production
assets in the Eagle Ford play in the State of Texas,
the United States operated by GulfTex Energy in
April 2019.
 Completed transfer of operations from GulfTex
in January 2020.

La Salle
Block
0

40km

Eagle Ford Shale play

*1 INPEX is the Operator except for a portion of project assets*2 Net production volume for INPEX interest. Average daily production
volume for June 2021.
Copyright © 2021 INPEX CORPORATION. All rights reserved.

Drilling Site
41

Key Companies and Petroleum Contracts (1/2)
 Key Companies and Petroleum Contracts*1
Company

Field / Project NameCountry

Contract Type

Ownership

Phase

Minami‐Nagaoka Gas Field, etc.*2

Japan

Concession‐

Producing

INPEX South Makassar, Ltd.

Sebuku Block(Ruby Gas Field)

Indonesia

PS

100%

Producing

MI Berau B.V.

Berau Block (Tangguh LNG Project)

IndonesiaPS

44%

Producing / Development

INPEX Masela, Ltd.

Masela Block (Abadi LNG)*2

Indonesia

PS

51.9%

Preparation for Development

INPEX Con Son Co., Ltd.

05‐1b / 05‐1c Blocks(Sao Vang and Dai Nguyet Gas Fields)

Vietnam

PS

100%

Producing / DevelopmentJapan
INPEX CORPORATION
Asia and Oceania

INPEX Sahul, Ltd.

Bayu‐Undan Gas Condensate Field

Timor‐Leste

PS

100%

Producing

INPEX Browse E&P Pty Ltd

WA‐285‐P*2and others

Australia

Concession

100%

Exploration

INPEX Ichthys Pty Ltd

WA‐50‐L and WA‐51‐L (Ichthys)*2

Australia

Concession

100%

Producing

Ichthys LNG Pty Ltd

Ichthys Downstream Business*2

Australia‐

66.245%

Producing

INPEX Oil & Gas Australia Pty Ltd

Prelude FLNG Project

Australia

Concession

100%

Producing

INPEX Alpha, Ltd.

Van Gogh Oil Field/Coniston Oil Field

Australia

Concession

100%

Producing

INPEX Alpha, Ltd.

Ravensworth Oil Field

Australia

Concession

100%

Producing*1 As of the end of June 2021
*2 INPEX operated projects
Copyright © 2021 INPEX CORPORATION. All rights reserved.

42

Key Companies and Petroleum Contracts (2/2)
 Key Companies and Petroleum Contracts*1
Company

Field / Project NameCountry

Contract Type

Ownership

Phase

Eurasia (Europe ‐ NIS)INPEX Southwest Caspian Sea, Ltd.

ACG Oil Fields

Azerbaijan

PS

51%

Producing

INPEX North Caspian Sea, Ltd.

Kashagan Oil Field

Kazakhstan

PS

51%

Producing

Upper Zakum Oil Field, etc.

UAE

Concession

100%

Producing

JODCO Lower Zakum Limited

Lower Zakum Oil Field

UAE

Concession

100%

Producing

JODCO Onshore Limited

Onshore Concession

UAE

Concession

51%

Producing

Teikoku Oil (D.R. Congo) Co., Ltd.

Offshore D.R.Congo

D.R.Congo

Concession

100%

Producing

INPEX Angola Block14

Offshore Angola Block 14

AngolaPS

100%

Producing

INPEX Americas, Inc.

Lucius Field and Hadrian North Field

USA

Concession

100%

Producing

INPEX Eagle Ford, LLC

Eagle Ford Tight Oil Project*2

Concession

100%*2

Producing

Middle East and Africa
JODCO

AmericasUSA*1 As of the end of June 2021
*2 INPEX operated projects except for a portion of project assets
Copyright © 2021 INPEX CORPORATION. All rights reserved.

43

Other Data and Information

Valuation Indices

EV/Proved Reserves*1

PBR*2

30.0

1.6
1.4

25.0

1.2
20.0

1.0

15.0

0.8

24.2

10.0
5.0

1.5

0.6

13.9

0.2

6.1

0.0

1.2

0.4

0.4

0.0
INPEX

Median of
Independents

Median of
Oil Majors

INPEXMedian of
Independents

Median of
Oil Majors*1 EV (Enterprise Value) / Proved Reserves = (Total market value + Total debt ‐ Cash and cash equivalent + Non‐controlling interests) / Proved Reserves. Total
market value as of June 30, 2021. Financial data as of March 31, 2021 (partly as of December 31, 2020). Proved Reserves as of December 31, 2020. Sources
based on public data.
*2 PBR = Share price / Net asset per share. Total market value as of June 30, 2021. Financial data as of March 31, 2021 (partly as of December 31, 2020). Sources
based on public data.
Copyright © 2021 INPEX CORPORATION. All rights reserved.

45

Annual Dividends and Payout Ratio
24 yen42 yen30 yen24 yen40 yen200%

39 yen180%

36 yen157%

16 yen33 yen

160%

6 yen

30 yen140%

27 yen6 yen

24 yen21 yen120%
100%

18 yen18 yen18 yen18 yen18 yen18 yen24 yen36%

35%

24 yen24 yen15 yen80%
60%

12 yen
9 yen

65%

57%

6 yen

34%

N/A due to
net loss

40%

34%

3 yen

20%
0%

0 yen
2015/3

Dividends

2016/32017/3

2018/3

2019/3

Dividends（a commemorative dividend）

2019/122020/12Dividends（increased dividend）

2021/12(Forecast)

Payout Ratio (right axis)

Copyright © 2021 INPEX CORPORATION. All rights reserved.

46

Medium‐term Business Plan 2018‐2022
Cash Allocation during the 5‐Year Period*1
Cash In

Cash OutCash flowfromoperations

Investment
for growth

beforeexploration
expenditure¥1.7 trillion*2*

Main Business Initiatives(1) Oil & Natural Gas
Upstream(70% for existing
projects, 30% for
new projects)

Core business areas(3) Renewable Energy

ACG Oil Fields

Priority exploration
areas



Eridu Oil Field (Block 10 in Iraq)

Abadi LNG ProjectPrelude FLNG
Ichthys LNG

Debt
reduction

Upstream Business Targets for FY2022
Net production
700 KBOED
RRR
Maintain 100％ or higher
Production cost
Reduce to US$5/BOE
Note: BOE stands for barrels of oil equivalent.
RRR is the 3‐year average. RRR stands for Reserve Replacement Ratio(Proved reserves increase including acquisition / Production).
Production cost is the production cost per barrel, excluding royalty.

Others*1 Assumes a crude oil price (Brent) of US$60/bbl and an exchange rate of ¥110/US$.
Includes Ichthys downstream JV.
*2 All expenditures for “Main Business Initiatives” as addressed from (1) to (3)Financial Targets

Enhancing Shareholder Returns


In FY2018, plan to issue a commemorative dividend following the Ichthys
LNG Project’s start‐up and shipment of cargo Shareholder return policy during FY2018‐2022
 Maintain base dividends not falling below ¥18 per share plus thecommemorative dividend as above
 Enhance annual dividends in stages by increasing the dividend per sharein accordance with the growth of the Company’s financial results
 Payout ratio : 30% or higher
Commemorative
dividend

FY2022

Annual
¥18
per
share
FY2021

FY2022

Period of the Medium‐term Business Plan

Copyright © 2021 INPEX CORPORATION. All rights reserved.

FY2017 Results

Crude oil price/exchange rate assumptions

US$60 / ¥110

Net sales

Around ¥1,300 bn¥933.7 bn

Around ¥150 bn
Around ¥450 bn
5% or higher¥278.5 bn

Net income attributable to owners of parent
Cash flow from operations
Return on equity (ROE)

FY2020

Promote geothermal power generation business and enter wind
power generation business
Enhance R&D of renewable energy technologies

Minami‐Nagaoka Gas Field

Abu Dhabi Offshore andOnshore Oil Fields

FY2019

Achieve annual gas supply volume of 2.5 billion m3 in Japan
Conduct LNG/gas marketing for Abadi, create gas demand in
Asia, etc.

Kashagan Oil Field

Shareholder
returns

FY2018

Major assets & projects¥2.5 trillion

FY2017(2) Global Gas Value Chain

US$57.85 / ¥110.86¥40.3 bn

1.4%

Maintain financial strength (expecting an equity ratio of 50% or higher)
Maintain financial and corporate resilience even if the crude oil prices drop to US$50/bbl

Note:
Crude oil price assumption is per one barrel of Brent crude oil; the exchange rate assumption is per U.S. dollar.
Targets are on a financial accounting basis.
Sensitivity of FY2022 net income attributable to owners of parent to the crude oil price and exchange rate is approximately +¥8.0 billion (‐¥8.0
billion) from a US$1/bbl increase (decrease) in the Brent crude oil price and approximately +¥2.0 billion (‐¥2.0 billion) from a ¥1/US$
depreciation (appreciation).
See page 5 of “Medium‐term Business Plan 2018‐2022” (URL: https://www.inpex.co.jp/english/company/pdf/business_plan.pdf) for other notes.

Note: Announced on May 11, 201847

Business Development Strategy‐ Towards a Net Zero Carbon Society by 2050 (1)Basic Policy on Management
INPEX will proactively engage in energy structure reforms towards the realization of a net zerocarbon society by 2050, while responding to the growing energy demands of Japan and the world andfulfilling its responsibility for the development and stable supply of energy over the long‐term.

1.

Stable supply of energy The company will continue to position its upstream
business as a core business and will work to fulfill its
two social responsibilities of providing a stablesupply of energy and responding to climate change
by strengthening its upstream business and making it
cleaner.
 INPEX will accelerate its shift to natural gas andcontinue enhancing initiatives to expand its Global
Gas Value Chain in Japan and growing markets in
Asia, while promoting carbon neutral LNG.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

48

Business Development Strategy‐ Towards a Net Zero Carbon Society by 2050 (2)2.

Goals and Initiatives Towards a Net Zero Carbon Society

 INPEX will set its climate change response goals to contribute to the realization of the Paris
Agreement objectives in relation to climate change.

2050

2030

NET ZERO in absolute emissions
30% OR MORE reduction of net*2
1(Scope1+2)*
carbon intensity (Scope1+2)※ Carbon dioxide Capture, Utilization and Storage、 CO2回収・有効利⽤・貯留

Scope 3 Reduction
work together with all relevant
stakeholders to address challenges
across the value chains The company will actively promote five business pillars in order to offer solutions responding to
the needs of society.
● Geothermal: Japan & Indonesia● Wind: Fixed‐bottom offshore project in
Akita, Japan, Creation of floating offshore
wind business● CO2 EOR Demonstration Tests in Niigata,Japan etc.
● Ichthys LNG Project CCS●Concept of Integrated Hydrogen
Business Test Project in Kashiwazaki,
Niigata, Japan● Clean Ammonia Business in Abu Dhabi● Carbon‐Free Hydrogen Businessoutside Japan●Methanation: Scale‐up of test facilities
in Niigata● Artificial Photosynthesis● New Fields: Drones, Methane cracking,
Carbon material business● Contribution to forest conservation
activities in Indonesia and other countries*1 on INPEX equity share basis*2 in comparison with 2019

*3 Carbon dioxide Capture, Utilization and Storage

Copyright © 2021 INPEX CORPORATION. All rights reserved.

49

ESG (Environment, Social and Governance) Initiatives
 INPEX engages in a variety of ESG activities focused on the six CSR material issues

 INPEX is included in global ESG indices and its performance is highly evaluated by major
ESG ratings organizations.
FTSE 4Good Developed Index
FTSE 4Good Japan Index
FTSE Blossom Japan Index

MSCI ESG Leaders Indexes
MSCI Japan ESG Select Leaders Indexes
MSCI Japan Empowering Women Index (WIN)S&P/JPX Carbon Efficient Index

SOMPO Sustainability Index

CDP Climate Change 2020 score︓A‐

S&P Sustainability Yearbook Member

Copyright © 2021 INPEX CORPORATION. All rights reserved.

50

Production Sharing Contracts

1. Cost Recovery Portion

Cost Recovery
Portion

Host Country Profit Oil

Contractor
Profit Oil

Host Country
Share

Contractor
Share

Non‐capital expenditures recovered during
the current period
capital expenditures recovered during thecurrent period
Recoverable costs that have not been
recovered in the previous periods

2. Equity Portion (Profit Oil)

: Host Country Take
: Subject to Tax: Not Subject to Tax

Copyright © 2021 INPEX CORPORATION. All rights reserved.

Contractor Take51

Accounting on Production Sharing Contracts

Cash Out

Assets on Balance Sheet

Income Statement

Project under
exploration phase

Exploration
Expenditures

Recoverable accounts
under production sharing
Project under development
and production phase

Provision for allowance forrecoverable accounts under
production sharing

Cost of sales Recovery of recoverable accounts
under production sharing (Capital
expenditures)

Development
Expenditures
Recoverable accounts
under production sharing

Cost of sales Recovery of recoverable accounts
under production sharing (Non‐Capital expenditures)

Production Costs(Operating expenses)
Project underdevelopment and production phase

Exploration anddevelopment rights

Acquisition Costs

SG&A Depreciation and amortization

Other Expenses
 Amortization of exploration anddevelopment rights

Copyright © 2021 INPEX CORPORATION. All rights reserved.

52

Accounting on Concession Agreements

Cash Out

Assets on Balance Sheet

Exploration
Expenditures

Development
Expenditures

Production Costs(Operating expenses)

Acquisition Costs

Copyright © 2021 INPEX CORPORATION. All rights reserved.

Income Statement

All exploration costs are
expensed as incurred

Exploration expenses

Tangible Fixed Assets

All production costs are
expensed as incurred

Mining Rights

Cost of sales(Depreciation andamortization)

Cost of sales(Operating expenses)
Cost of sales(Depreciation andamortization)

53

Ichthys LNG Project Accounting Process Overview
Ichthys Upstream Permit
Holding entity (UJV)

Assets on Consolidated
Balance Sheet

Sales Revenue

Net Sales
All production costs are
expensed as incurred

Production Costs(Operating Expenses)
Development Expenditures(Depreciation and Amortization)

Tangible Fixed Assets

Raw Material Costs(Purchase of Feed Gas from UJV)

Cost of sales(Operating expenses)
Cost of sales(Depreciation and amortization)* Depreciation is calculated on an units ofproduction basis over the life of the
project

Ichthys Downstream entity(IJV)
Sales Revenue

Consolidated Income
Statement* INPEX share of IJV’s net income/loss arereflected as “equity in earnings/losses ofaffiliates“. Depreciation is calculated ona straight line basis over the life of the
project.

Production Costs(Operating Expenses)

Other Income/Expenses(Equity in earnings/losses
of affiliates)

Development Expenditures(Depreciation and Amortization)
Interest Expense* Ichthys Downstream entity (IJV) is an equity‐method affiliate and its cash flow does not appear on the consolidated cash flow statement* Only major cost and expenditure items are shown.
Copyright © 2021 INPEX CORPORATION. All rights reserved.

54

Ichthys LNG Project Structure Overview
INPEX Holdings Australia Pty Ltd(Holding company)

100% owned
Subsidiary

100% owned
Subsidiary

66.245% owned
Equity‐method affiliate

INPEX Operations Australia Pty Ltd(Operating company)

INPEX Ichthys Pty Ltd(Upstream entity)

Ichthys LNG Pty Ltd(Downstream entity)

Scope of Business
Undertakes operations etc. of
INPEX upstream anddownstream businesses inAustralia, including the
Ichthys LNG Project’s
upstream and downstream
businesses.

Scope of Business
Holds the titles covering the
Ichthys Field and ownershipof the offshore production
facilities etc. Also markets feed
gas to the Ichthys downstream
entity. Markets condensate as
well.

Scope of Business
Owns the gas export pipeline
and the onshore LNG plantand storage and offloading
facilities. Purchases feed gas
from the Ichthys upstream
entity and markets processed
products including LNG, LPG
and condensate.

Copyright © 2021 INPEX CORPORATION. All rights reserved.

55

Summary of Australian Taxation⇒(Oil & Gas sales price)×(Sales volume)

Sales…………..(1)⇒OPEX incurred in relevant year (+Exploration cost)+CAPEX tax depreciation

Operating expense…………..(2)

PRRT (Petroleum Resource Rent Tax)
= (Upstream Revenue ‐ Upstream CAPEX & OPEX ‐ Exploration Cost ‐ Abandonment Cost ‐Undeducted PRRT expenditure carried forward) x 40%…………..(3)• PRRT deductions are made in the following order: Upstream CAPEX, OPEX, Exploration Cost,
Abandonment Cost.
Note: Exploration cost is subject to mandatory transfer between Projects/members of the same group of entities.
• Undeducted PRRT Expenditure: non‐utilized deductible PRRT expenditure can be carried forward
to the following year(s), subject to augmentation at the rates set out below;
o Development cost: LTBR+5% or LTBR or GDP deflator
o Exploration cost: LTBR+15% or LTBR+5% or GDP deflator

Corporate Tax(In Australia)

Note: The interest rate to be applied varies depending on the timing of application for a production license, thetiming of exploration/development expenses and the number of years elapsed from the payment of expenses. LTBR =Long Term Bond Rate, GDP deflator = GDP deflator of Australia.
Corporate Tax = {(1) – (2) – (3) ‐ Interest paid) x 30%*
* The legal tax rate of Australian corporate tax may differ from the accounting burden of corporate tax etc. on INPEX’s

subsidiaries in Australia. In addition, the amount of corporate tax etc. in accounting may differ from the amount ofcorporate tax paid in Australia.

Note: Content may change due to tax revisions
Copyright © 2021 INPEX CORPORATION. All rights reserved.

56

Historical Crude Oil Prices(US$/bbl)

Brent

80

WTI

Dubai

70
60
50
40
30
20
10
0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

2019

Brent
WTI
Dubai

Jan to June 2020 Jan to Dec 2020
(Average)(Average)
42.12
43.21
37.01
39.40
40.64
42.21

Copyright © 2021 INPEX CORPORATION. All rights reserved.

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

2020

Jan
55.32
52.10
54.77

Feb
62.28
59.06
60.86

2021
Mar
Apr
65.70 65.33
62.36 61.70
64.41 62.89

Feb

Mar

Apr

May

Jun

2021

May
68.31
65.16
66.31

Jun
73.41
71.35
71.57

Jan to June 2021
(Average)
65.06
61.96
63.47
57