Financial results for the six months ended September 30, 2011
Appendix

November 7, 2011

Subsidiaries and Affiliates
56 consolidated subsidiaries
Major subsidiaries

Country/region

OwnershipStage

Accounting term

Japan Oil Development

UAE

100%

Production

March (provisional
settlement of account)

INPEX Natuna

Indonesia

100%

Production

March

INPEX Sahul

Timor Sea Joint Petroleum
Development Area

100%

Production

December

INPEX Browse

Australia

100%

Preparation fordevelopment

March (provisional
settlement of account)

INPEX Southwest Caspian Sea

Azerbaijan

51%

Production

March (provisional
settlement of account)

INPEX North Caspian Sea

Kazakhstan

45%

Development

March (provisional
settlement of account)

OwnershipStage

Accounting term

13 equity method affiliates
Major affiliates

1Country/region

MI Berau B.V.

Indonesia

44%

Production

DecemberAngola Japan Oil

Angola19.6%

Production

December

INPEX Offshore North Campos

Brazil

37.5%

Production

DecemberSegment information

For the six months ended September 30, 2011 (April 1, 2011 through September 30, 2011)(Millions of yen)
Reportable segments
Adjustments Consolidated*1*2

Asia &
Oceania

Eurasia(Europe &NIS)

MiddleEast &
AfricaAmericas49,949231,63145,036

243,900

2,646

573,165―

573,165

―

―

―

―

―

―

―

―

Total

49,949231,63145,036

243,900

2,646

573,165―

573,165

Segment income (loss)

5,971

137,152

25,457

171,503(6,662)

333,423(5,362)

328,060

Japan
Net sales
Sales to third parties
Intercompany sales andtransfers between
segments

Total

Note: 1. Adjustments of segment income of ¥(5,362) million include elimination of inter‐segment transactions of ¥115 million and corporate expenses of ¥(5,478)
million. Corporate expenses are mainly amortization of goodwill that are not allocated to a reportable segment and general administrative expenses.
2. Segment income is reconciled with operating income on the consolidated statements of income.

2

LPG Sales
Apr.‐Sep. ‘10

Change%Change

Net Sales (Billions of yen)

10.2

4.2

(5.9)

(58.3%)

Sales volume (Mbbl)

1,645

530

(1,114)(67.8%)

Average unit price of overseas
production ($/bbl)

64.79

85.06

20.27

31.3%

Average unit price of domestic
production(¥/ kg)

118

125

7

6.1%

Average exchange rate (¥/$)

90.21

81.89

8.32
Yen appreciation

9.2%
Yen appreciation

Sales volume by region (Mbbl)

Apr.‐Sep. ‘10

Apr.‐Sep. ‘11

ChangeJapan

126(12 thousand ton)

121
(12 thousand ton)(5)(‐ 0 thousand ton)

(4.2%)

Asia/Oceania

1,518

409

(1,109)(73.0%)

Eurasia (Europe/NIS )

‐

‐

‐

‐

Middle East/Africa

‐

‐

‐

‐

Americas

‐

‐

‐

‐

1,645

530

(1,114)(67.8%)

Total

3

Apr.‐Sep. ‘11%ChangeEBIDAX
Apr.‐Sep.
‘10(Millions of yen)

Apr.‐Sep.
‘11

ChangeNet income

50,62674,396

23,770

P/L

Minority interests

2,495

8,634

6,139

P/L

Depreciation equivalent amount55,38556,197812

Depreciation and amortization

28,087

23,722(4,365)

Amortization of goodwill

3,380

3,380

0

Recovery of recoverable accounts(capital expenditure)

23,91829,095

5,177

15,986

20,525

4,539

Exploration expenses

6,461

10,535

4,074

P/L Exploration expense under concession agreements

Provision for allowance for recoverable
accounts under production sharing

7,500

9,145

1,645

P/L Exploration expense under PS contracts

Provision for exploration projects

2,025

845

(1,180)P/L Exploration expense under PS contracts

4,294

(540)

(4,834)

Deferred income taxes

6,979

4,083

(2,896)

P/L

Foreign exchange loss

(2,685)(4,623)(1,938)

C/F

(965)

(973)

(8)

127,821

158,239

30,418

Exploration cost equivalent amountMaterial non‐cash items

Net interest income, after tax
EBIDAX

4

C/F Depreciation under concession agreements and G&A
C/FC/F Depreciation under PS contracts

P/L After‐tax interest expense minus interest income

Analysis of Recoverable Accounts
under Production Sharing(Millions of yen)

Apr.‐Sep. ‘11

Balance at beginning of period

534,330

Add:

Exploration costs

15,203Development costs

63,619Operating expenses

24,816

Other

2,388

Cost recovery (CAPEX)

29,095

Cost recovery (non‐CAPEX)

50,799

Less:

Other

5

0

Balance at end of period

560,463

Allowance for recoverable accounts under production
sharing at end of period

109,586

Sales and Investment planfor the year ending March 31, 2012
【Reference】

Forecasts for the year
ending March 31, 2012

As of May 11, 2011

As of Nov. 4, 2011

Apr.‐Sep. ’11(Actual)Change83,991

81,557(2,434)

39,139Natural gas (MMcf)2

363,840

360,711(3,129)184,454

Overseas298,794

295,304(3,490)156,027

Japan

65,046(1,743 million m3)

65,407(1,753 million m3)

361(10 million m3)

28,427(762 million m3)

2,409

2,403

(6)

530

Development expenditure

275.0

209.0

(66.0)

86.1

Other capital expenditure

37.0

38.0

1.0

2.9

Exploration expenditure4

54.0

49.0

(5.0)

23.9

41.1

(4.7)

17.1

(3.1)

Sales Volume

Crude oil (Mbbl)1

LPG （Mbbl）3（Billions of yen）

Exploration expenses andProvision for explorations5

Exploration Cost 19.1

Exploration Cost 13.6
Provision for allowance for
exploration 32.2

(Minority Interest Portion)645.8

Provision for allowance for
exploration 21.9

20.2

Exploration Cost 10.5
Provision for allowance for
exploration 9.9

20.5
10.4

Note 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 Including acquisition costs
5 “Provision for allowance for recoverable accounts under production sharing” + ”Provision for exploration projects” as shown in Statements of Income
6 Capital increase from minority shareholders recorded as “Minority interests” and “Gain on change in equity”, which does not affect net income

6

Net Production* (Apr. 2011 – Sep. 2011)
Oil/Condensate/LPG
2% 1%
5
3

Total

238Mbbl/day

22%

51
26

153

11%

405MBOE/day

Japan
Asia/Oceania

4% 5%Eurasia

18 20

Middle East/Africa
Americas

64%

38%

153
188

Natural Gas
8%

10%

77 101999MMcf/day

Asia/Oceania

821

26

(167MBOE/day)Japan**

Americas

47%

Japan
Eurasia
Americas6%

Asia/Oceania
Middle East/Africa

82%

7

*

The production volume of crude oil and natural gas under the production sharing contracts entered into by INPEX Group corresponds to the net economic take of our group.

**

41.8605MJ / 1m3

Project Summary

Exploration Performance(as of the end of September 2011)*

Suriname‐ Block 31 (1) **Brazil‐BM‐C‐31 (1)‐BM‐ES‐23 (3)‐ Frade (1)Indonesia‐ Offshore Mahakam (1)‐ Semai II (1)*

Number in ( ) is the number ofdrilling wells**

Operator Project

Exploratory Well
(well)

Mar. ’12 (E)9Completion or Under
operation

Seismic Survey 2D(km)

Seismic Survey 3D
(km2)

12

504

4,653

8

292

1,536

Major Assets in Production & Development

Joslyn Oil Sands Project

Sakhalin 1

North Caspian Sea Block(Kashagan Oil Field, etc)
ACG Oil Field

Minami‐Nagaoka Gas Field

ADMA Block

Projects in the shallow waters ofthe. U.S. Gulf of Mexico

South Natuna Sea Block B
El Ouar I/II

Copa Macoya/Guarico
Oriental Blocks

Offshore Mahakam Block
Sebuku Block(Ruby Gas Field)
Berau Block (Tangguh Unit)
Abadi LNG Project

Offshore D.R.
Congo Block

WA‐35‐L(Van Gogh Field)

JPDA03‐12(Bayu‐Undan Oil & Gas Field)

WA‐43‐L(Ravensworth Field)

Offshore North Campos
Frade Block

JPDA06‐105(Kitan Oil Field)
Ichthys LNG Project

In Production

In Development

Preparation for Development

Undeveloped

10

Production Start‐up Schedule
Production Start‐up

October, 2011

Project/Oil & Gas Field

JPDA*4

Kitan Oil Field
Kashagan Oil Field

Fiscal 2012
(April ’12 ‐ March ’13)
Fiscal 2013
(April ’13 – March ’14)

Kazakhstan

Operator

ENI

Peak Production /Production Capacity

40Mbbl/d

Our Share*1

35%

NCOC*5

‐

7.56%
35%

Bawal Gas Field (South Natuna Sea Block B)

Indonesia

ConocoPhillips‐ *3South Mahakam Gas Field(Offshore Mahakam)Indonesia

TOTAL

TBD

50%

Ruby Gas Field (Sebuku Block)Indonesia

Pearl Energy

100MMscf/d

15%

South Belut Gas Field(South Natuna Sea Block B)

Indonesia

ConocoPhillips

‐ *3

35%

UAE

ADMA‐OPCO*6

‐ *3

12.0%

Nasr Oil Field

UAE

ADMA‐OPCO*6

‐ *3

12.0%

Joslyn Oil Sand Project (Mining)

CanadaTOTAL

200Mbbl/d

10%

Ichthys Project (LNG)

Australia

INPEX

8.4MMt/y

76%

Umm LuLu Oil Field

After April 2014

Country

Approx. 100Mbbl/d(Condensate)

1.6MMt/y

(LPG)

60%*2

Indonesia

INPEX

Kuda Tasi / Jahal

JPDA*4

ENI

TBD

35%

Discovered/

Coniston/Novara

Australia

ApacheTBD

41.324%

Production start‐up(TBD)

Kalamkas, Aktote, Kairan and Southwest
Kashagan structures

Kazakhstan

NCOC*5

TBD

7.56%

El Ouar I&II

Algeria

ENI

TBD

10.29%

Abadi Project (LNG)

8,400bbl/d(Condensate)

*1
*2

11

*3
*4
*5
*6

2.5MMt/y *3

Our share is a participating interest. In the case of an equity method affiliate, multiplying participating interest by our controlling share.
In July 2011, INPEX signed an agreement with Shell for transfer of a 30% participating interest from INPEX’s current 90% interest.
The transaction is subject to the satisfaction of certain conditions such as the approval of the Indonesian Government.
Nondisclosure because of confidentiality agreement with project partners
Joint Petroleum Development Area (Timor Sea)
North Caspian Operating Company
Abu Dhabi Marine Operating Company

Domestic Natural Gas Business
INPEX CORPORATION–Production* :•Natural gas : approx.3.4 million m3/d(129MMcf/d)**•Crude oil and condensate : approx. 4,000 bbl/d
LNG(from 2014 - )–Natural Gas Sales•Diversification of source of supply : LNG supply from
Shizuoka Gas Company (from January 2010)

Domestic gas•Natural Gas Sales FY 2010 : approx. 1,720 MM m3**
FY 2011(e) : approx. 1,750 MM m3**
•Expect more than 2,500‐3,000 MM m3 of natural gas
demand in the mid‐to long‐term–Gas Supply Chain

LNG(regasified)•FID on the Toyama Line in May 2011
•Construction of LNG Receiving Terminal(Start‐up
target: 2014)*sum of domestic crude oil and gas fields : average daily volume (FY2011/03)**1m3 =41,6805MJ

12

Domestic Gas Price
Price Comparison per Unit
140

120

*Conversion into unit price per 41.8605MJ (10,000kcal) by Crude Oil : 38.20MJ/L, A
Heavy : 39.10MJ/L, LNG : 54.50MJ/kg from Statistics by METI
*Refinement cost, etc. are not included in crude oil, Delivery cost, etc. are notincluded in A Heavy, Storage, Regasfied, Distribution costs, etc. are not included in
LNG(Price(¥/41.8605MJ)

100

80

60

40

20

‐
98/4
13

99/4

00/4

01/4

02/4

03/4

04/4

05/4

06/4

07/4

08/4

09/4

10/4

11/4

Offshore Mahakam
INPEX CORPORATION– Participating Interest: 50% (Operator: TOTAL)– Production*
Bontang LNG/LPG Plant• Crude Oil and Condensate: Approximately
80,000 bbl/d• Gas: Approximately 1,780 million cf/d
– PSC: Until 2017
Attaka Unit
Santan Terminal– To continue development activities to keep stable
Attaka Fieldgas supply to Bontang LNG plant
Badak Field• Phased development of the Tunu / Peciko fields
Nilam Field
Tambora Field
Tunu• Additional development of the Tambora field
Paciko Field
Field• Development of the Sisi‐Nubi fields
Handil Field
Sisi Field• Development of the South Mahakam field
Senipah Terminal
Nubi Field
Bekapai Field
Makassar Strait– HOA of Renewal for two LNG sales contracts withJapanese buyers was signed in February 2009, andBalikpapan
Offshore Mahakam
LNG sales commenced in 2011.
– HOA for the supply to the first LNG receiving
South Mahakam Gas Fields
terminal (FSRU: Floating Storage andRegasification Unit) in West Java in October 2010
– To continue negotiation on PS contract renewal withIndonesian governmental authorities in cooperation＊ on the basis of all fields and average rate of September 2011
with TOTAL
Gas field

Oil Field

Oil and Gas field

14

Sebuku Block (Ruby Gas Field)
INPEX South Makassar
Bontang LNG Plants
Santan Terminal

Feritilizer Plant
Attaka Oil Field– Participating Interest: 15%(Operator : Pearl Energy)

Tunu Gas Field

Senipah Terminal
Balikpapan– PSC: Until 2027

Peciko Gas Field– POD for Ruby Gas Field was approved byIndonesian Government in July 2008

Kalimantan
South Makaham Gas Fields

Sebuku Block

Sulaewesi– FOA (Farm Out Agreement) with Pearl Energy wasapproved by Indonesian Government in August2010 (INPEX acquired a 15% interest)– Final investment decision was made in June 2011.

0

50

100㎞

– Production is expected to commence in the second
half of 2013

Ruby Gas Field

Kalimantan

Sulavesi

West Papua– Offshore facilities will be tied‐in to the onshore
facilities of Offshore Mahakam Block by subsea
pipeline

Gas field
Oil Field

15

Jawa

– Produced gas will be mainly supplied to domestic
fertilizer plant in Indonesia

South Natuna Sea Block B
INPEX NATUNA LTD.
–

A
A

–
Natuna Sea––

South Natuna Sea Block

B
Tembang
BuntalBelidaSembllang

Keong

North Belut

Hlu

KerisiSouh Belut

Bawal

West Belut–

BelanakNatuna Island

Bintang LautMalongKijing

–
–

B

Hiu

Tembang
Kerisi
BelidaBuntalBawal–

West Belut
Keong

–

BelenakGas field

Semblang

Bintaug LautMalongKijing16

North Belut
South BelutOil field
Oil & Gas field–＊ on the basis of all fields and average rate of September 2011–

Participating Interest: 35.0%(Operator : ConocoPhillips)
Production*:• Crude Oil: Approximately 53,000 bbl/d• Gas: Approximately 340 million cf/d
PSC: Until 2028
Signed a gas sales contract for 22 years from 2001
with SembCorp (Singapore) and for 20 years from2002 with Petronas (Malaysia)
Belanak oil and gas field commenced crude oil andcondensate production in December 2004
Belanak oil and gas field commenced LPG
production in April 2007
Kerisi oil and gas field commenced oil and gas
production in December 2007
North Belut gas field commenced gas andcondensate production in November 2009
Suspension of LPG production at Belanak due torepairs needed for LPG FSO since October 2010
(LPG Production back in service in February 2012)
Production at Bawal gas field is expected tocommence in 2012
Production at South Belut gas field is expected tocommence in 2013

Berau (Tangguh LNG Project)
MI BERAU B.V. / MI BERAU JAPAN LTD.
West Papua Province(Indonesia)– MI Berau B.V./MI Berau Japan Ltd.* : Joint
venture with Mitsubishi Corporation (INPEX
44%, Mitsubishi 56%) *MI Berau Japan owns approximately
16.5% share of KG Berau Petroleum Ltd.

Berau Block17– Participating Interest in the Berau PSC:
• MI Berau : Tangguh Unit: 16.3%• KG Berau Petroleum : Tangguh Unit: 8.56%• Operator : BP
– Production*:• Condensate: Approximately 7,000 bbl/d• Gas: Approximately 1,180 million cf/d
– PSC: Until 2035
Kaimana– Scheduled Production: 7.6 million tons of LNG
per year– First cargo of Tangguh LNG delivered in JulyGas field
2009＊ on the basis of all fields and average rate of September 2011

JPDA03‐12 (Bayu‐Undan)
INPEX SAHUL, LTD.
– Participating Interest: 11.37812%(Operator: ConocoPhillips)– Production*:• Oil / Condensate: Approximately
59,000 bbl/d• LPG: Approximately 35,000 bbl/dIndonesia

Timor Sea
Joint Petroleum Development Area

Australia

Kitan Oil Field

JPDA03‐12 Block––Gas field
Oil field

50 km

Bayu‐Undan
Gas/Condensate Field

Darwin––18• Gas: Approximately 560 million cf/d
PSC: Until 2022
Sales of condensate and LPG started in
February 2004
Entered into LNG Sales Contract withTEPCO and Tokyo Gas in August 2005
(3 million t/y for 17 years from 2006)
LNG sales started in February 2006

＊ on the basis of all fields and average rate of September 2011

JPDA06‐105 (Kitan Oil Field)
INPEX TIMOR SEA, LTD.
Timor Sea
Joint Petroleum Development Area

JPDA06‐105 Block
Kitan Oil Field

Gas field
Oil field

50 km

19

Bayu‐Undan
Gas/Condensate Field– Participating Interest: 35% (Operator:
Eni)– PSC: Until April 2035 (Kitan Oil Field)– Discovered oil in Kitan‐1 in January
2008– Declaration of commercial discoveryof Kitan Oil Field in April 2008
– National Petroleum Authority
approved the Final Development Plan
for Kitan Oil Field in April 2010
– Production started in October 2011

Van Gogh Oil Field, Ravensworth Oil Field
INPEX ALPHA, LTD.
Australia

Coniston Structure

Van Gogh Oil Field

WA‐35‐L
Block

Ravensworth Oil Field
WA‐43‐L
Block
Onslow

Van Gogh Oil Field (WA‐35‐L)– Participating Interest:47.499%(Operator: Apache)– Concession Agreement:• Production License was granted in October
2008– Production started in February 2010
– Production*:
Oil: Approximately 33,000bbl/dRavensworth Oil Field (WA‐43‐L)– Participating Interest: 28.5 %Gas field
Australia(Operator :BHPBP)Oil field– Concession Agreement:• Production License was granted in November
2009– Final investment decision in November 2007
– Tie‐in development to the Production Facilities
in WA‐42‐L, next to WA‐43‐L– Production started in August 2010
– Production*:＊ on the basis of all fields and average rate of September 2011
Oil: Approximately 32,000bbl/d
20
Exmouth050km

Masela (Abadi)

INPEX Masela, Ltd.
Tanimbar Islands–

Participating Interest*: INPEX 60% (Operator),
Shell 30%, PT Energi Mega Persada 10%
 Agreed to transfer a 30% participating interest
from INPEX’s current 90% interest to a
subsidiary of Shell in July 2011–

PSC:
 10 year exploration period (until 2008) 20 year development/ production period (until
2028)

–

Plan of Development (POD‐1) was approved by
the Indonesian Government in December 2010.
 First Phase Development
Development Concept : Floating LNG
Production Volumes (expected) :2.5 MM t/y of LNG
8,400 bbl/d of condensate–

Preparations for FEED works and AMDAL(Environmental & Social Impact Assessment
Process) are ongoing–

FEED works : plan to start by the 1st half of 2012–

Further Study for Future Subsequent
Developments according to gas reserves

SaumlakiAraura Sea
EAST TIMOR

Masela Block

Abadi gas field

Timor Sea Joint Petroleum
Development Area

AUSTRALIA

Darwin0100*The transaction is subject to the satisfaction of certain conditions such as theapproval of the Indonesian Government.

21

200km

WA‐37‐R (Ichthys) / WA‐285‐P (1/2)
INPEX Browse, Ltd./ INPEX Ichthys Pty Ltd/ Ichthys LNG Pty Ltd
INDONESIAJava Sea

Arafura Sea

Timor Sea

WA‐37‐R

IndianOcean

A

A

Ichthys Gas‐
condensate field

AUSTRALIA
WA‐285‐P– Participating Interest: 76.0%– Operator: INPEX– Concession Agreement:• WA‐37‐R (Retention Lease) until September
2014

WA‐285‐P

Gas field

JPDA03‐13

WA‐274‐P
SANTOS 30%
CHEVRON 50%
INPEX
20%

DARWIN

WA‐343‐P
INPEX 60%
TOTAL 40%

WA‐341‐P

B

INPEX 60%
TOTAL 40%

WA‐410‐P
SANTOS 30%
CHEVRON 50%
INPEX
20%

• WA‐285‐P(Exploration permit) until July2015

WA‐344‐P
INPEX 60%
TOTAL 40%

WA‐411‐P
SANTOS 63.6299%
INPEX
26.6064%
BEACH 9.7637%

 Production period: from the grant of the
production license, to the termination of the
production
 Plan to initially produce approximately 8.4
million t/y of LNG and approximately 100
thousand bbl/d (Peak Rate) of condensate and1.6 million t/y year of LPG

NORTHERNTERRITORYICHTHYS

WA‐281‐P

WA‐37‐R / WA‐285‐P

SANTOS
47.83%CHEVRON 24.83%
INPEX
20%
BEACH
7.34%

INPEX 76%
TOTAL 24%

B
Darwin CBD
Wikham Point(Darwin LNG)

WESTERN
AUSTRALIA

Blaydin Point(Proposed Site)

Gas field
BROOME

0

100

200km
0

2

4km

Middle Arm22

WA‐37‐R (Ichthys) / WA‐285‐P (2/2)
INPEX Browse, Ltd./ INPEX Ichthys Pty Ltd/ Ichthys LNG Pty Ltd■Development Works– Confirmed a large‐scale gas and condensate field in total six exploratory wells from 2000 and called “Ichthys”––

The Australian Government awards Major Project Facilitation(MPF) status to Ichthys project in August 2006, as it provides a significant boost
to Australia’s employment and exports
Drilled the exploration wells (Dinichthys North‐1 since April 2007 and Ichthys West‐1 since April 2008) with the aim of expansion of the gas
reserves (8 exploration wells in total)––

Selected Darwin, Northern Territory as liquefied natural gas plant site in September 2008
Onshore FEED work: Commencement in January 2009. Completed Engineering work of LNG plant in March 2011. Preparation work for EPC
in progress– Offshore FEED work: Commencement in April 2009. Completed Engineering work in July 2011. Preparation work for EPC in progress.
■EIA– Commenced Australian federal and West Australian government approval processes for assessment of environmental impact of the Ichthys
project in May 2006
– Commenced Australian federal and Northern Territory government approval processes for assessment of environmental impact of the Ichthys
project in May 2008
– Draft EIS (Environmental Impact Statement) was submitted to Northern Territory and Commonwealth Governments in April 2010. Public
review of draft EIS was conducted during July 15 – September 10, 2010.
– Submitted EIS supplement in April 2011 for approval from the Governments taking public comments into account.
––

The NT(Northern Territory) Government has granted the environmental approval in May 2011.
The Australian Government has granted the environmental approval in June 2011.

■Production License– Retention Lease(WA‐37‐R) was granted for area of the Ichthys field in September 2009. (Exploration work in ongoing at WA‐285‐P)– Application for production license : Submitted Field Development Plan to the authority in April 2011.
– Necessary information has been submitted to the Authority in June 2011 (Statement of Receipt issued)■Others– Opened Darwin office in April 2009–23

Strengthened the organizational structures in Perth Office in October 2010

ACG

INPEX Southwest Caspian Sea, Ltd.
50km
The Caspian sea

Azerbaijan
Baku

ＡＣＧ

Deepwater portionof Gunashli
ChiragKazakhstan

RussiaAzeri
The Aral Sea
Uzbekistan
The Caspian Sea

Georgia

Armenia

Azerbaijan
Turkmenistan

Iran

24

500km
Oil field＊ on the basis of all fields and average rate of September 2011

– Participating Interest: 10.9644%(Operator: BP)– Production *: Approximately 716,000
bbl/d– PSC: Until 2024
– Phase 1 : Starting oil production in theCentral Azeri area in February 2005
– Phase 2 : Starting oil production in theWest Azeri area in December 2005 andin the East Azeri area in October 2006
– Phase 3 : Starting oil production in the
Deepwater portion of Gunashli area in
April 2008
– Additional Development:
Governmental Approval for Chirag Oil
Project (COP) in March 2010 (Startingoil production is scheduled in
December 2013)

Kashagan, etc.
INPEX North Caspian Sea, Ltd.
Kashagan Structure

–
–
–
–

Kairan Structure

Caspian Sea

KashaganSouthwest Structure

Aktote Structure

RussiaKazakhstan

TurkeyKalamkas Structure

China
Iran

India

Participating Interest: 7.56%
PSC: Until the end of 2021*
Discovered crude oil in Kashagan in June 2000
In addition to Kashagan structure, existence ofhydrocarbon was confirmed in Kalamkas,
Aktote, Kairan and Southwest Kashagan
structures– Established a new joint operating company(North Caspian Operating Company). NCOC
took over the operatorship from Agip KCO in
January 2009
– Production start target: end of 2012
– At the Experimental Program stage, production
rate will be 370 thousand bbl/d and further
increase to 450 thousand bbl/d.

*We have the options to extend the contract period by 20 years

25

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

Black Sea

BTC Pipeline

TbilisiGEORGIAARMENIA

CaspianSea

Baku

AZERBAIJAN

TURKEY

CeyhanCYPRUS

IRAN

SYRIA
IRAQ

Mediterranean
Sea– Participating Interest: 2.5%
(Operator : BP)– Obtained stock of the operating company(BTC Co.) through INPEX BTC Pipeline, Ltd.
in October 2002
– Commenced crude oil export in June 2006
from Ceyhan terminal– Complete commissioning work 1.2 million
bbl/d capacity expansion in March 2009
– Cumulative export volume reached 1,000
MM bbls on September 13, 2010

26

ADMA
Japan Oil Development Co., Ltd. (JODCO)
Production Oil Field
Underwater pipeline

ADMA Block

Undeveloped Oil
FieldsNasr Oil Field

Umm Shaif Oil Field
Das Island

Lower/Upper Zakum
Oil Field

Satah Oil Field
Zirku Island

Umm Al‐Dalkh Oil Field

Umm Lulu Oil Field
Abu Dhabi

27– Umm Shaif / Lower Zakum• Participating Interest: 12.0% (Operator :ADMA‐OPCO*)– Upper Zakum / Umm Al‐Dalkh / Satah• Participating Interest:
Upper Zakum / Umm Al‐Dalkh: 12.0%
Satah: 40.0% (Operator : ZADCO*)*Operating company established by ADNOC and other companies
including JODCO. JODCO has 12% interest in each company.

– Concession Agreement: Until 2018
(Contract of Upper Zakum : Until 2026)– Continuous development to keep and increase
the production level by Water injection to all the fields
 Gas injection to Umm Shaif / Lower Zakum
fields Making development plans of promising
undeveloped oil fields
 New gas injection facility (Umm Shaif) andadditional gas processing facility (Lower
Zakum) in operation
 Making redevelopment plan using artificial
islands (Upper Zakum)

Venezuela Projects
Teikoku Oil & Gas Venezuela, C.A., etc
Teikoku Oil & Gas Venezuela, C.A.

Copa Macoya / Guarico Oriental Blocks– INPEX’s Share• Gas JV : 70%
Oil JV : 30%– Joint Venture Agreement: 2006‐2026– Production volume*• Gas: Approximately 73 million cf/d
• Crude oil: Approximately 1,000 bbl/d

Copa Macoya / Guarico Oriental Blocks

A T R A N T I C
O C E A N

CaracasVenezuela

BRAZIL＊ on the basis of all fields and average rate of September 2011

28

Brazil Projects
Frade Japão Petróleo Limitada (FJPL) etc
Frade Japão Petróleo Limitada (FJPL)– FJPL’s Participating Interest: 18.3%(Operator : Chevron)

BrazilVitória

BM‐ES‐23*FJPL is an equity method affiliate of INPEX.
(INPEX owns 37.5% shares of FJPL through a subsidiary)
Atlantic Ocean –BrazilFrade Block
Campos

Production*:• Crude Oil: Approximately 75,000 bbl/d• Gas: Approximately 20 million cf/d
– Concession Agreement: Until 2025

BM‐C‐31

Macaé
Rio de Janeiro

BM‐C‐31– Participating Interest: 20%– Under Exploration
BM‐ES‐23
Participating Interest: 15%100km –– Under Exploration

Oil and Gas field

029＊ on the basis of all fields and average rate of September 2011

Gulf of Mexico (USA) Projects
Teikoku Oil (North America) Co., Ltd. / INPEX Gulf of Mexico Co., Ltd.
Shallow Water Project(Teikoku Oil (North America) Co., Ltd. )LSI 19372
Louisiana

Texas

MexicoMain
Main Pass
118

West Cameron
401/402
0500

Ship Shoal
72

1,000km

CUBA

WR95/96/139/140– Concession Agreement– Participating Interest:•Ship Shoal 72: 25%•West Cameron 401/402: 25%•Main Pass 118: 10%•LSL 19372: 17.5%•LSL 20183: 25%– Production volume*•Gas: Approximately 17 million cf/d
•Crude oil: Approximately 300 bbl/d

Deep Water Project(INPEX Gulf of Mexico Co., Ltd.)– Concession Agreement– Participating Interest:•Walker Ridge 95/96/139/140 : 15%＊ Ship Shoal 72, West Cameron 401/402, Main Pass 118, LSL 19372/20183 on the basis of all fields and average rate of September 201130

Joslyn Oil Sands Project
INPEX Canada, Ltd.
– Participating Interest:
7405070799

Fort McMurray

CanadaEdmonton
Calgary

7280060T24
7404110452

Joslyn Oilsand Lease(217km²)

Alberta– Concession Agreement (Lease)• 7280060T24 : Indefinite• 7404110452 : 15 year primary lease from
November 2004*• 7405070799 : 15 year primary lease from July
2005*
*Will be extended

Athabasca River– Oil Sands Upstream Project:

Fort McMurray0• Upstream project: 10% (operator: TOTAL)

20km

Joslyn OilSand Lease Location• SAGD operation has been suspended.
• Mining project will commence operations in late
2010s and will reach a production rate of 100,000
barrels of bitumen per day, followed byadditional 100 ,000 barrels of bitumen per day as
the second phase– Upgrader Project:• Alternatives to Edmonton Upgrader are underconsideration.

31

Offshore D.R. Congo
Teikoku Oil (D.R. Congo) Co., Ltd.
Offshore D.R. Congo Block– Participating Interest: 32.28%(Operator: Perenco)

CABINDA– Concession Agreement: 1969‐2023

D.R. CONGO– Production Commencement: 1975
– Production volume*: Approximately
15,000 bbl/d

MuandaBananaSoyo

ANGOLAOil field

32

0

5

10km

＊ on the basis of all fields and average rate of September 2011

Algeria Projects
Teikoku Oil (Algeria) Co., Ltd.
SPAIN

Maditerranean Sea

El Ouar I/II Blocks– Participating Interest: 10.29%(Operator: ENI)
– Concession Agreement– Finalizing a development plan (oil andgas/condensate) for approval of the Algerianauthority

ＴＵＮＩＳＩＡ

MOROCCOEl Ouer
ＯｈａｎｅｔAlgeria

LIBYA

0

250

500km

Ｌｉｂｙａ

Teikoku Oil (Algeria)
El Ouar I/II Blocks

Ａｌｇｅｒｉａ
Gas field
Oil Field
Oil and Gas field

0

33

100km

ＤＩＭＥＴＡＷ．

Sakhalin I
Sakhalin Oil and Gas Development Co.
0

5

10km

Gas field
Oil Field

OdoptuStructure

Sakhalin
IslandVal

ChayvoStructure
Arkutun‐Dagi
Structure– Sakhalin Oil and Gas Development Co. (SODECO):INPEX owns 5.75% of the total share– SODECO’s Participating Interest: 30.0%– Production*:• Crude Oil : Approximately 135,000 bbl/d• Gas: Approximately 737 million cf/d
– Operator: ExxonMobil– PSC: In December 2001, the project moved intodevelopment phase for 20 years– Commenced production from Chayvo Structure in
October 2005; commenced crude oil export in
October 2006
– Commenced production from Odoptu Structure in
September 2010
– Commenced natural gas supply to Russian
domestic market, and considering natural gas
supply to Chinese and other markets＊ on the basis of all fields and average rate of September 201134

East China Sea
INPEX CORPORATION– 1969: Application for exploration rights– 1981, 1984: Seismic survey– 1992: Discovery of Pinghu by CNOOC,
Production commencement in 1998
– 1997~1999: Seismic survey by JNOC
– 2004~2005: Seismic survey by JOGMEC– April 2005: Starting a procedure for granting
exploration rights by METI, we submitted arequest to accelerate the procedure on 3 Areas(Approximately 400km2) in the application
Areas (42,000km2) to Kyushu Bureau of METI
– August 2005: Granted exploration rights of 3
Areas by MITI
– June 2008：Japan and China reached a politicalagreement on how and where to conduct joint
exploration in the East China Sea.
– We are monitoring the outcome of the talks
between the Governments of Japan and China,
and preparing to begin work for exploration on
consultation with Japanese local authorities.
Based on MTI press release on April 13th, 2005

35

Key Investments and Contracts I*
Company

Field / Project NameCountry

Minami‐Nagaoka, etc. **Japan•INPEX CORPORATION

MahakamContract Type Ownership StageJapan
ConcessionｰIndonesia

PSｰ•INPEX South Makassar

Sebuku Block(Ruby Gas Field) Indonesia

PS

100%

•INPEX Natuna

South Natuna Block ‘B‘Indonesia

PS

100%

•MI Berau B.V.

Berau(Tangguh LNG Project) Indonesia

PS

44%

•INPEX Masela

Masela(Abadi)**Indonesia

PS

51.9%

•INPEX Sahul

Bayu‐Undan

JPDA

PS

100%

•INPEX Browse

WA‐285‐P **Australia

Concession

100%•INPEX Ichthys Pty Ltd.

WA‐37‐R(Ichthys) **Australia

Concession

100%•Ichthys LNG Pty Ltd.

Ichthys Down Stream **Australia‐

76%•INPEX Timor Sea

JPDA 06‐105(Kitan)

JPDA

PS

100%

•INPEX Alpha

Van Gogh

Australia

Concession

100%•INPEX Alpha

Ravensworth

Australia

Concession

100%•INPEX CORPORATION

Asia/Oceania

Exploration

Note： * As of the end of October 2011**Operator project36

Key Investments and Contracts II*
Company

Field / Project NameCountry Contract Type Ownership Stage

Eurasia (Europe – NIS)•INPEX Southwest Caspian Sea

ACG

Azerbaijan

PS

51%

•INPEX North Caspian Sea

Kashagan

Kazakhstan

PS

45%

ADMA(Upper Zakum, etc.)

UAE

Concession

100%•Teikoku Oil (D.R. Congo)

Offshore D.R.Congo

D.R.Congo

Concession

100%•Teikoku Oil (Algeria)

El Ouar I/II Blocks

Algeria

Concession

100%•INPEX Canada

Joslyn Oilsand

CanadaConcession

100%•Teikoku Oil & Gas Venezuela

Copa Macoya** / Guarico Oriental

Venezuela

JV

100%

USA

Concession

100%

BrazilConcession

37.5%***The Middle East
•JODCO

AfricaAmericas•Teikoku Oil (North America) Ship Shoal 72etc.
•Frade Japão Petróleo Limitada

Frade

Note： * As of the end of October 2011.
**Operator project***Frade Japão Petróleo Limitada is subsidiary of INPEX Offshore North Campos (INPEX’s equity method affiliate). 37.5% of ownership means indirect investment from INPEX through
INPEX Offshore North Campos.

37

Others

Investment Plan and Funding Sources
Approximately 3.5 trillion yen
For Ichthys, Abadi and other E&P projects etc.
from Fiscal 2010 to Fiscal 2016

EquityProceeds from equity
offering (August 2010.
Approx. 520 billion yen)

CashFlowOperating cash flow
(241.4 billion yen in
the fiscal year 2009)Cash and other liquid
investments on hand

39

*
**

JBIC : Japan Bank for International Cooperation
JOGMEC : Japan Oil, Gas and Metals National Corporation

Bank Loans
Sizeable lending fromJBIC* together withcommercial banks
Guarantee by
JOGMEC** for a certain
portion of loans fromcommercial banks
Project financeCore Finance Strategies
Advantage of low‐cost funding
Maintain strong balance sheet
to achieve financial stability
and secure further debt capacity

Leverage relationships withgovernmental financial
institutions, such as JBIC andJOGMEC, to fund developmentcosts Maintain funding capability to ensure necessary investments,
which are for major projects such as Ichthys and Abadi
 Further strengthen balance sheet to enable continuous
investments in potential projects in the future Long‐term target financial leverage Equity Ratio : 50% or higher
 Net Debt / Total Capital Employed Ratio: 20% or less40

Production Sharing Contracts

Cost Recovery Portion

1. Cost Recovery Portion Non‐capital expenditures incurred for
production and recovered during thecurrent period
 Scheduled depreciation of the capital
expenditures for the current period andrecovered during the current period Recoverable costs that have not been
recovered in the previous periods

Host Country Profit Oil

Contractor
Profit Oil

2. Equity Portion (Profit Oil)

Host Country
Share

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

41

Contractor Take

Accounting on Production Sharing Contract
Cash Out

Assets on Balance Sheet

Income Statement

Project under exploration phase
Exploration Expenditures

Recoverable accounts under
production sharing
Project under development andproduction phase

Development Expenditures
Recoverable accounts under
production sharing
Production Costs(Operating expenses)
Project under development andproduction phase
Acquisition Costs

Exploration and development
rightsProvision for allowance forrecoverable accounts under
production sharing

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

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

SG&A Depreciation and amortization
Other Expenses
 Amortization of exploration anddevelopment rights

42

Accounting on Concession Agreement
Cash Out

Assets on Balance Sheet

Income Statement

All exploration costs are
expensed as incurred
Exploration Expenditures

Development Expenditures

Production Costs(Operating expenses)

Acquisition Costs

43

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)

Crude Oil Price
125.00120.00115.00110.00105.00100.00
95.00
90.00
85.00
80.00
75.00
70.00
(US$/bbl)

44

Brent

Apr.

May

Jun.

WTI

Jul.

Aug.

Dubai

Sep.

Oct.

Nov.

Dec.

2010

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

2011
Apr.‐Sep.
‘10

Apr.’10‐Mar. ’11

Apr.‐Sep.
‘11

Average

Average

Apr.

May

Jun.

Jul.

Aug.

Sep.

Average

Brent

64.37

87.24

123.09114.52113.90116.75109.93109.91114.68

WTI

63.96

83.38

110.04101.36

96.29

97.34

86.34

85.61

96.16

Dubai

63.53

84.20

116.00108.38107.77109.99105.02106.30108.91

2011

Sep.