Financial results for the six months ended June 30, 2023

Appendix
August 10, 2023

Subsidiaries and Affiliates

67 Consolidated Subsidiaries
Major Subsidiaries

Country / Region

Ownership

Phase

Accounting Term

INPEX Sahul, Ltd.

Timor-Leste

100%

Production

December

INPEX Ichthys Pty Ltd

Australia

100%

Production

December

INPEX Oil & Gas Australia Pty Ltd

Australia

100%

Production

December

INPEX Southwest Caspian Sea, Ltd.

Azerbaijan

51%

Production

December

INPEX North Caspian Sea, Ltd.

Kazakhstan

51%

Production

DecemberJapan Oil Development Co., Ltd.

UAE

100%

Production

December

JODCO Onshore Limited

UAE

65.76%

Production

December

JODCO Lower Zakum Limited

UAE

100%

Production

December

INPEX Idemitsu Norge AS

Norway50.51%

Production

December

INPEX Masela, Ltd.

Indonesia

51.93%

Preparation fordevelopment

December

Ownership

Phase

Accounting Term

25 Equity Method Affiliates
Major Equity Method Affiliates

Country / Region

Ichthys LNG Pty Ltd

Australia

66.245%

Production

December

MI Berau B.V.

Indonesia

44%

Production

December

Copyright © 2023 INPEX CORPORATION. All rights reserved.

1

2Q FY2023
Segment Information*1

Oil and Gas Overseas
Oil and Gas
Japan(Millions of yen)Ichthys
Projects

Other
Projects

Other*2

Total

Adjustments*3

Consolidated*4

Net sales

141,787

193,210742,281

18,171

1,095,451(16,661)

1,078,789

Segment income (loss)

28,484

152,997

76,481

2,692

260,655(6,400)254,255*1 Reportable segments have been changed from the first quarter of the fiscal year ending December 31, 2023.
In addition, the segment income has been changed from operating income to net income attributable to owners of parent.
*2 The “Other” category consists of the operating segments that are not included in the reportable segments, and includes the five net-zero businesses, etc.
*3 Adjustments of segment income (loss) of ¥(6,400) million consist of elimination of inter-segment transactions of ¥48 million and corporate expenses of ¥(6,448) million
that are not allocated to reportable segments or the “Other” category. Corporate expenses are mainly amortization of goodwill and general administrative expenses thatare not allocated to a reportable segment and “Other” category.

*4 Segment income (loss) is reconciled with net income attributable to owners of parent on the consolidated statement of income.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

2

Net Production Volume (January to June 2023)
Crude Oil, Condensate and LPG（388 thousand BOE/day）O&G Japan 9 23
3 （1%）O&G Overseas
386 （99%）
253

Ichthys PJ

Crude 9Oil23
and Gas Total(647 thousand BOE/day)278

35 （9%）

O&G Japan

Other PJ

20 （3%）

351 （91%）

253

O&G Overseas278
627 （97%）

Natural Gas
1,364 million cf/day (259 thousand BOE/day)O&G Japan
97 （7%）O&G Overseas
1,267 （93%）

Ichthys PJ

Other PJ

987 （79%）280 （21%）

Ichthys PJ

Other PJ

225 （37%）402 （63%）* The production volume under the production sharing contracts corresponds to the net economic take of the INPEX Group.
Copyright © 2023 INPEX CORPORATION. All rights reserved.

3

Electric Power Generation Capacity for Interest & Electric Power Generated

Power Generation Capacity for INPEX’s share

Koshijihara Gas fired Power Plant

Power Generation
Capacity for INPEX’s
share
55.0MW

Country

INPEX’s share

Power Generation Capacity

Japan

100%

55MW

55.0MW

Total gas fired power
INPEX Mega Solar Joetsu

Japan

100%

Sarulla Geothermal Power ProjectIndonesia

18.2525%

55MW
4WM(2MW×2)
330MW

Muara Laboh Geothermal Power ProjectIndonesia

30%*

85MW

25.5MW

Rantau Dedap Geothermal Power ProjectIndonesia

27.4%

26.9MW

Luchterduinen Offshore Wind Farm

Netherlands

50%

Borssele III/IV Offshore Wind Farm

Netherlands

15%

Moray East Offshore Wind Farm

UK

16.7%

Total renewable energy

98.4MW
129MW(3MW×43 units）
731.5MW(9.5MW x 77 units)
950MW（9.5MW× 100 units）
2,327.9MW

Total

2,382.9MW

4.0MW

60.2MW

64.5MW109.7MW
158.65MW
449.45MW
504.45MW*INPEX holds 33.333% shares in PT Supreme Energy Sumatera which holds 30% interest of the Project and also 20% shares directly.

Electric Power Generated (million kWh)
2Q FY2022(January - June ’22)

2Q FY2023(January - June ’23)
320.3

Copyright © 2023 INPEX CORPORATION. All rights reserved.

826.8
4

FY2023 Sales Volume (Forecast)

FY2023 (forecasts as ofFebruary 10, 2023)

FY2023 (forecasts as ofAugust 10, 2023)

Change% Change

Sales Volume

Crude oil (thousand bbl) *1

139,642

136,314(3,327)(2.4%)Natural gas (million cf) *2

524,197498,848(25,349)(4.8%)

Overseas438,249

420,085(18,164)(4.1%)

Japan

85,948(2,303 million m3)

78,763(2,110 million m3)(7,185)((193) million m3)(8.4%)

514

443

(72)

(13.9%)LPG (thousand bbl) *3*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

Copyright © 2023 INPEX CORPORATION. All rights reserved.

5

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, 2023*1(Billions of yen)

At Beginning of 1Q : +6.0 (-6.0)
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 FY2023 as below;
At beginning of 2Q : +4.0 (-4.0)
At beginning of 3Q : +2.0 (-2.0)
At beginning of 4Q : +0.8 (-0.8)+3.2 (-3.2)*1 The sensitivities calculated at the beginning of the fiscal year (January 2023) represent the impact on net income for the year ending December 31, 2023 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 : +6.0 billions of yen (1Q : +0.8 billions of yen, 2Q : +1.2 billions of yen, 3Q : +2.0 billions of yen , 4Q : +2.0 billions of yen)
◼ At beginning of 2Q : +4.0 billions of yen (1Q : －－－－－－－－ , 2Q : +0.8 billions of yen, 3Q : +1.2 billions of yen , 4Q : +2.0 billions of yen)
◼ At beginning of 3Q : +2.0 billions of yen (1Q : －－－－－－－－ , 2Q : －－－－－－－－ , 3Q : +0.8 billions of yen , 4Q : +1.2 billions of yen)
◼ At beginning of 4Q : +0.8 billions of yen (1Q : －－－－－－－－, 2Q : －－－－－－－－ , 3Q : －－－－－－－－ , 4Q : +0.8 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 the exchange rate at the endof the fiscal year and the end of the previous fiscal year is largely neutralized.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

6

Shareholder Returns
DPS

Dividends, Share Buybacks and Total Payout Ratio
250

70.0%
65.1%

(Unit:¥)

Around
61% 60.0%

61.9%
200

50.0%
44.1%

150
120
36.5%

74

100

35.5%
31.2%

100

30.0%

70

62

20.0%

48
50
30
24

40.0%

68

24

18
26

44

35

83

Around
95
10.0%

35

0

0.0%

Dividends (billion yen)

Share Buybacks (billion yen)

Payout Ratio (Dividends)

Total Payout Ratio* The total payout ratio for FY2020/12 is NA due to net loss.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

7

Reserves & Production Indices

18.0
15.0
12.0
9.0
6.0
3.0
0.0

SG&A Cost per BOE Produced
5.0

15.2

4.0

11.3

8.6
5.2

5.4

5.8
Incl. royalty
Excl. royality

FY2020

FY2021

FY2022＊Production cost per boe produced: Production cost divided by boe produced in the fiscal year

US$/boe

US$/boe

Production Cost per BOE Produced

3.0

2.3

2.4

2.5

FY2020

FY2021

FY2022

2.0
1.0
0.0

＊SG&A cost per boe produced: SG&A cost divided by boe produced in the fiscal year

Finding & Development Cost per BOE (3-year average)

US$/boe

30.0
20.0

400%

22.9
18.1

16.4

Reserve Replacement Ratio (3-year average)

300%
200%

10.0

100%

0.0

76%

37%

46%

FY2021

FY20220%
FY2020

FY2021

FY2022* Finding and development cost per boe (3-year average): Sum of total costs incurred for explorationand development of oil and gas fields and total costs incurred for acquisitions divided by the sum of
proved reserve extensions, acquisitions and revisions (3-year average)

Copyright © 2023 INPEX CORPORATION. All rights reserved.

FY2020＊ Reserve replacement ratio (3-year average): Proved reserves increase including acquisition
divided by production volume (3-year average)

8Reserves*1

6,706

7,000

6,505

6,311

6,213

2,666

2,476

6,000
5,212

2,620

2,775

5,000

Million BOE

1,202
4,000
27.4
years*4

3,000
2,000

4,010

4,086

3,730

3,645

3,738

FY2019/3

FY2019/12

FY2020/12

FY2021/12

FY2022/12

16.5
years*41,000
0Proved Reserves *2

*1
*2

*3

*4

Probable Reserves *3

The reserves cover most of the INPEX Group projects including the portion attributable to non-controlling interests. The reserves of the large capital investment projects which should materiallyaffect the company’s future results are evaluated by DeGolyer & MacNaughton, while the others are evaluated internally.
The proved reserves are evaluated in accordance with the SEC regulations. When probabilistic methods are employed, there should be at least a 90% probability that the quantities actually
recovered will equal to or exceed the estimated proved reserves.
The probable reserves are evaluated in accordance with the Petroleum Resources Management System (PRMS) of SPE etc. When probabilistic methods are employed, there should be at least a
50% probability that the quantities actually recovered will equal to or exceed the sum of estimated proved and probable reserves. Probable reserves do not guarantee production of the totalreserves during a future production period with the same certainty as proved reserves.
Reserves to production ratio = Reserves as of December 31, 2022 / Production for the year ended December 31, 2022

Copyright © 2023 INPEX CORPORATION. All rights reserved.

9

Proved Reserves by Region
4,500
4,000

4,010
0.1%

4,086
1.2%

3,730

1.1%

3,500

3,738
0.3%

3,645
1.0%

3,000

MMBOE

58.6%

59.2%
58.1%

2,500

61.2%

73.8%
*1

2,000
1,500

8.2%

8.6%

9.7%

8.9%

1,000
29.3%

27.2%

27.4%

25.3%

22.5%

3.8%

3.8%

3.7%

3.6%

3.4%

2019/3

2019/122020/122021/122022/12

500
0

Japan

Asia/Oceania

Eurasia (Europe/NIS)

Middle East/Africa

Americas*1 For FY2022/12, proved reserves for Eurasia (Europe/NIS) and for Middle East/Africa regions are added up and shown as a total.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

10Upside Potential from Proved & Probable Reserves(MM BOE)

11,00010,0009,000

Probable Reserves
Ichthys, Upper Zakum,
Abu Dhabi Onshore, etc.

Proved Undeveloped Reserves
Proved Developed Reserves

8,000
Abadi, Ichthys, etc.

7,000
6,000

5,000

2,476

4,000

1,148

3,000

1,148

2,000
1,000

2,590

2,590

16.5
Years*1

27.4
Years*1

0
Proved Developed
Reserves*1*2

ProvedUndeveloped
Reserves

Proved Reserves

Probable Reserves Possible Reserves
and Contingent
Resources *2

Reserves to production ratio = (Reserves as of December 31, 2022) / (Production for the year ended December 31, 2022)
Contingent Resources are estimated by INPEX. Under the PRMS standard, contingent resources are quantities of hydrocarbons which are estimated to be potentially recoverablefrom known accumulations, but which are not currently considered to be commercially recoverable due to one or more contingencies.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

11

Factor Analysis of Change in Proved Reserves(MM BOE)
4,500

4,000

44

286

3,500

(11)

(227 )

3,000
2,500
2,000
1,500

3,738

3,645

1,000
500
0
December 2021
Proved Reserves

Extensions andRevisions of*1
Discoveries
previous estimates

Impact of
Change in
Oil Prices

Production
during FY2021

December 2022
Proved Reserves*1 Including acquisitions and sales

Copyright © 2023 INPEX CORPORATION. All rights reserved.

12Factor Analysis of Change in Probable Reserves(MM BOE)

3,000

7

2,500

(168)

2,000
1,500

(29)

2,666

2,476

1,000
500
0
December 2021
Probable Reserves

Extensions andDiscoveries*1

Revisions ofprevious
estimates

Impact of
Change in
Oil Prices

December 2022
Probable Reserves*1 Including acquisitions and sales.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

13

Definition of Proved Reserves and Probable Reserves
Proved Reserves◼

Our definition of proved reserves is in accordance with the SEC Regulation S-X, Rule 4-10, which defines proved reserves as theestimated quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonablecertainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic
conditions, operating methods, and government regulations—prior to the time at which relevant petroleum contracts
providing the right to operate expire.

◼

To be classified as a proved reserve, the SEC rule requires that extraction of the hydrocarbons must have commenced or theoperator must be reasonably certain that it will commence extraction within a reasonable time . This definition is known to beconservative among the various definitions of reserves used in the oil and gas industry.

◼

When probabilistic methods are employed, there should be at least a 90% probability that the quantities actually recovered
will equal or exceed the estimated proved reserves.

◼

The SEC rule separates proved reserves into two categories; proved developed reserves which can be recovered by existingwells, infrastructure and operational methods, and proved undeveloped reserves which require future development of wells
and infrastructure to be recovered.

Probable Reserves◼

Probable Reserves, as defined by SPE/WPC/AAPG/SPEE, are those unproved reserves which analysis of geological andengineering data suggests are more likely to be commercially recoverable after the Proved Reserves.

◼

In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually
recovered will equal or exceed the sum of estimated Proved plus Probable Reserves.

*Probable Reserves are not necessarily expected to be developed and produced at the same level of certainty as Proved Reserves.
Copyright © 2023 INPEX CORPORATION. All rights reserved.

14

Climate Change Response Goals and GHG Emissions
Our Climate Change Response Goals

2050

2030

Scope 3NET ZERO*

30% OR MORE*

REDUCTION

in absolute emissions(Scope 1+2)

reduction of net carbon intensity(Scope 1+2)

work together withall relevant stakeholders toaddress challenges
across the value chains* on INPEX equity share basis* in comparison with 2019

Target set in the Medium-term Business Plan 2022-2024 (Net Carbon Intensity)
Target for FY2024
Net carbon intensity *1

Reduction of 10% (4.1kg/boe) or more
over a 3-year period towards 2030 target *2

GHG Emissions and Net Carbon Intensity Actuals
2020

2021

2022

Scope1 (thousand tons-CO2e)

7,328

7,302

6,839

Scope2 (thousand tons-CO2e)

148

136

69

Net carbon intensity (kg-CO2e/boe)

35

33

28

0.07%

0.04%

0.05%

Methane Emissions Intensity*1 Net carbon intensity = (equity share emissions volume (Scope 1＋2) ‐ offset) / (net production volume of upstream oil & gas business + electricity generated using renewable energy)*2 Reduction of 2019 net carbon intensity (41.1kg/boe) by 30% or more

Copyright © 2023 INPEX CORPORATION. All rights reserved.

15

Project Data

List of Main Projects (1/3)

Contract TypeParticipating
Interest

Crude oilproduction(Thousandbbl/day)*2

LPG production(Thousandbbl/day)*2

Gas production(MMcf/day)*2

Phase

WA-285-P*2and others*1

Concession

100

-

-

-

Exploration

WA-50-L and WA-51-L (Ichthys)*1

Concession

66.245

Upstream
condensate:
Approx.53-

Upstreamnatural gas:
Approx.1,490*3

Production

Prelude FLNG Project

Concession

17.5

Van Gogh Oil Field/Coniston Oil Field

Concession

47.499Approx.9--

Production

Ravensworth Oil Field

Concession

28.5

Approx.3--

Production

PS

11.378120

condensate:
Approx.5

Approx.2

Approx.99*4

Production

Fields / Projects name

Australia

Bayu-Undan Gas Condensate Field(Timor-Leste)

Production*1 INPEX operated projects.
*2 Average daily production volume for the six months ended June 30, 2023 on the basis of 100% interest of projects.
*3 Gas volume sold to the downstream entity (Gas supplied from upstream to the LNG plant as a raw material to make products such as LNG, LPG and plant condensate.
*4 Gas volume sold to buyers.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

17

List of Main Projects (2/3)
Crude oilproduction(Thousandbbl/day)*2

LPG production(Thousandbbl/day)*2

Gas production(MMcf/day)*2*3

Contract TypeParticipating
InterestUpper Zakum Oil Field etc.

Concession

12

Production

Lower Zakum Oil Field

Concession

10

Production

Onshore Concession

Concession

5

Production

Onshore Block 4*1

Concession

100

Fields / Projects namePhase

Middle East

Fields / Projects nameCountry---

Exploration

Contract
Type

Participating
Interest

Crude oilproduction(Thousandbbl/day)*2LPG
production(Thousandbbl/day)*2

Gas
production(MMcf/day)
*2*3

Phase

South East Asia
Sebuku Block(Ruby Gas Field)

Indonesia

PS

13.5

Approx.0-

Arrpxo.52

Production

Berau Block (Tangguh LNG Project)

Indonesia

PS

7.79
(net)

Condensate:
Approx.5-

Approx.1,055

Production /Development

Masela Block (Abadi LNG)*1

Indonesia

PS

65

-

-

-

Preparation for
Development

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

VietnamPS

36.92

Block 4E (deep water block)

Malaysia

PS

52.5

-

-

-

Exploration

Block SK418 (shallow water block)

Malaysia

PS

40.0

-

-

-

Exploration

Production /Development*1 INPEX operated projects.
*2 Average daily production volume for the six months ended June 30, 2023 on the basis of 100% interest of projects.
*3 Gas volume sold to buyers.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

18

List of Main Projects (3/3)

Fields / Projects nameContract TypeParticipating Interest

Crude oilproduction(Thousandbbl/day)*2LPG
production(Thousandbbl/day)*2

Gas production*2

Phase

-

Crude oil &
condensate:approx. 3-

Approx.2.6
million m3/d
(97 million
scf/d)

Production

Crude oilproduction(Thousandbbl/day)*2

LPG production(Thousandbbl/day)*2

Gas production(MMcf/day)
*2*3

Phase

Approx.375--

Production

Japan
Minami-Nagaoka Gas Field, etc.*1

Concession

Country

Contract TypeParticipating
Interest

ACG Oil Fields

AzerbaijanPS

9.3072

Kashagan Oil Field

Kazakhstan

PS

7.56

Snorre Oil Field etc.

NorwayConcession

3.3-30％(Production
fields)Fields / Projects nameEurope / NIS

Production
Approx.178

-

408*4

Production /Development /Exploration*1 INPEX operated projects.
*2 Average daily production volume for the six months ended June 30, 2023 on the basis of 100% interest of projects.
*3 Gas volume sold to buyers.
*4 Including Natural Gas Liquids.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

19

Project Highlights – Oil and gas business –CORE AREA #1 Australia
Ichthys LNG Project

Overview of the Project◼
◼

Cargoes shipped by product type

Drilling of Production Wells➢ Currently drilling the 25th production well
OPEX (Operating Expenditure)➢ Competitive OPEX compared to INPEX’s other assets in production◼ Production capacity➢ LNG: Approx. 8.9million ton per year
➢ LPG: Approx. 1.65 million ton per year
➢ Condensate: Approx. 1000,000bbl/d (at peak)◼

LNG

OnshoreCondensate

Offshore
Condensate

LPG

October 2018 toMarch 2019

31

4

10

6

April to December 2019

84

16

23

23

2020

122

22

34

34

2021

117

21

32

32

2022

112

21

29

30

Jan to June 2023

65

11

15

17

Project Life: Approx. 40 years◼ 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◼

PeriodProject Financing➢ US$ 20 billion project financing agreements with ECAs and majorcommercial banks completed in December 2012
➢ Concluded a refinancing of approx. 8.3 billion US dollars in June
2020

Copyright © 2023 INPEX CORPORATION. All rights reserved.

Exploration Blocks in the Vicinity of the Project◼

◼
◼

INPEX holds participating interests in 16 exploration blocks in thevicinity of the Ichthys LNG Project. To date, multiple gas reservoirs
have been discovered including Crown, Lasseter, Mimia andBurnside. These gas reservoirs extend across at least 9 blocks.
Land secured for possible additional LNG processing trains in
Darwin.
Completed 2D-seismic data acquisition for WA-533-P and WA532-P in May 2022. 3D-seismic data acquisition for AC/P66 andexploratory drillings at WA-285-P planned during 2nd half of 2023.

20

Project Highlights – Oil and gas business –CORE AREA #1 Australia
Prelude FLNG Project
INPEX Oil & Gas Australia Pty Ltd◼
◼

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 at peak◼

Milestones➢ Made FID in May 2011
➢ Wells opened and initial phase of production commenced 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
* 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)

Van Gogh, Coniston and Ravensworth Oil Fields
INPEX Alpha, Ltd.
Van Gogh Oil Field (WA-35-L) and Coniston Oil Field (WA-35-L / WA-55-L)◼ Operator: Santos◼
Concession Agreement: Valid until end of production◼
Milestones➢ In February 2010, oil production commenced at the Van Gogh Oil Field➢ In May 2015, oil production commenced at the Coniston Oil Fields➢ In July 2016, oil production commenced at the Novara Structure within Coniston Oil Fields➢ In January 2019, production commenced from the Infill wells at the Van Gogh Oil Field➢ Three Infill phase 2 wells at the Van Gogh commenced drilling from 2Q 2021 and commenced production from 3Q 2021.
Ravensworth Oil Field (WA-43-L)◼ Operator: Woodside◼
Concession Agreement: Valid until end of production◼
Milestones➢ Production commenced in August 2010
Copyright © 2023 INPEX CORPORATION. All rights reserved.

21

Project Highlights – Oil and gas business –CORE AREA #1 Australia
TL-SO-T 19-12 Block (Bayu-Undan Gas and Condensate Field)
INPEX Sahul, Ltd.
◼
◼
◼

Operator: Santos
PSC: Until December 31, 2023
Milestones➢ In February 2004, commenced sales of condensate 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 the maritime boundaries between Australia and Timor-Leste, INPEX enteredinto a new PSC with the government of Timor-Leste. The project will continue to be operated under terms equivalent to
the previous arrangements.
➢ Three Infill Phase 3C wells commenced drilling from 2Q 2021 and commenced production from 3Q 2021.
➢ In March 2022, commenced FEED for Bayu-Undan CCS with aim to store CO2 emitted by utilizing the Bayu-Undan facilities
and Darwin LNG facilities.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

22

Project Highlights – Oil and gas business –CORE AREA #2 Abu Dhabi
Abu Dhabi Onshore Concession◼
◼
◼

Operator：ADNOC Onshore*
Concession agreement：Until 2054
Further development study is ongoing to increase production capacity.

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

Abu Dhabi Offshore Oil Fields◼

Operator➢ Upper Zakum Oil Field : ADNOC Offshore➢ Lower Zakum Oil Field : ADNOC Offshore➢ Satah/Umm Al Dalkh oil fields：ADNOC Offshore◼ Development work is ongoing to increase the combined production capacity of the four fields to approximately 1.5 million bbl/d◼ Target Production Capacity➢ Upper Zakum (12% INPEX interest): 1 million bbl/d➢ Lower Zakum (10% INPEX interest): 0.45 million bbl/d➢ Satah (40% INPEX interest): 25 thousand bbl/d➢ Umm Al Dalkh (40% INPEX interest): 20 thousand bbl/d◼ Concession agreement➢ Upper Zakum Oil Field :2051➢ Lower Zakum Oil Field :2058➢ Satah/Umm Al Dalkh oil fields：2043◼ As the asset leader of the Lower Zakum Oil Field, INPEX is currently playing a leading role in advancing development and working closely with ADNOC
and its partners.
◼ Working on making operations cleaner in cooperation with ADNOC by supplying offshore facilities with clean power from onshore, etc.
◼ Further development study is ongoing to increase production capacity.
Abu Dhabi Onshore Block 4◼
◼
◼
◼

In 2019, exclusively awarded Onshore Block 4 as operator.
In May 2021, commenced exploratory drilling works
Multiple oil and gas deposits discovered, conducting appraisal works aiming for early production
Block surface area: approx. 6,116 square kilometers

Copyright © 2023 INPEX CORPORATION. All rights reserved.

23

Project Highlights – Oil and gas business –CORE AREA #3 Southeast Asia

Abadi LNG Project
INPEX Masela, Ltd.
◼
◼
◼

Operator : INPEX
PSC : Until November 15, 2055 (Signed extension in October 2019)
Production Capacity➢
Total output of natural gas 10.5 million tons per year (LNG equivalent) including；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 per day◼ Milestones➢ Listed as a national strategic project in June 2017 and as a priority infrastructure project in September 2017 by the Indonesian government.
➢ In July 2019, Indonesian authorities approved the revised plan of development based on an onshore LNG development scheme.
➢ In 2020, INPEX signed MoUs with PT PLN, PT Pupuk Indonesia and PT Perusahaan Gas Negara Tbk respectively each concerning the long-term domestic gas
supply from Abadi LNG Project.
➢ In December 2020, INPEX signed a MOU with with Indonesia's state-owned gas company for the supply of LNG to the Indonesian domestic market.
➢ Submitted a revised POD for the project incorporating a CCS component to made the project competitive and clean.
◼ Upcoming plan
➢ Aiming for early FID and production start-up in close coordination and cooperation with new partners Pertamina and Petronas

Tangguh LNG ProjectMI Berau B.V. / MI Berau Japan Ltd.
◼
◼
◼
◼

Operator : BP
PSC: Until December 31, 2055
LNG Production Capacity: 7.6 Mtpa
Milestones➢
LNG sales commenced in July 2009➢
Made FID for an expansion project to add a third LNG train with a 3.8 million ton per year production capacity in July 2016, currently under construction➢
Plan of Development (POD) for Ubadari Field and Vorwata CCUS approved by SKK Migas in August 2021➢
In December 2022, extended the PSC by 20 years➢
During 2023, expected to start production from a third LNG train➢
In December 2022, a 20‐year extension of the PSC to 2055 was approved by the Indonesian government. Considering development inclusive of CCUS

Copyright © 2023 INPEX CORPORATION. All rights reserved.

24

Project Highlights – Oil and gas business –CORE AREA #3 Southeast Asia
Blocks 05-1b and 05-1c (Sao Vang and Dai Nguyet Gas Field)
INPEX Con Son Co., Ltd.
◼
◼
◼
◼

Operator:Idemitsu Gas Production (Vietnam)
PSC: Until November 17, 2034
Expected Production Volume➢ 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
➢ June 2013: Discovery of gas and condensate➢ August 2014: Further discovery of gas and condensate➢ February 2018: Final Investment Decision➢ November 2020: First sales gas delivered to pipeline from Sao Vang Gas Field➢ August 2022: Completed development of Dai Nguyet Gas Field

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

Operator : PEARLOIL (Mubadala)
PSC: Until September 21, 2027
Milestones➢ Farmed-in in September 2010
➢ Made FID in June 2011
➢ Production commenced in October 2013

Copyright © 2023 INPEX CORPORATION. All rights reserved.

25

Project Highlights – Oil and gas business –CORE AREA #3 Southeast Asia
Block 4E (deep water block)
INPEX Malaysia E&P 4E Sdn. Bhd.
◼
◼
◼

Operator : INPEX Malaysia E&P 4E Sdn. Bhd.
PSC : Until February 14, 2059（1st exploration period: three years until February 14, 2026, 2nd exploration period: two years until February 14,
2028）
Milestones➢ In December 2022, awarded exploration licenses for Block 4E.
➢ In February 2023, signed PSC➢ In July 2023, first year budget approved by the authorities and exploration work commenced.

Block SK418 (shallow water block)
INPEX Malaysia E&P SK418 Sdn. Bhd.
◼
◼
◼

Operator : PETRONAS Carigali Sdn. Bhd.
PSC : Until February 14, 2051（Exploration period until February 14, 2027）
Milestones➢ In December 2022, awarded exploration licenses for Block SK418.
➢ In February 2023, signed PSC.
➢ In July 2023, first year budget approved by the authorities and exploration work commenced.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

26

Project Highlights – Oil and gas business –CORE AREA #4 Japan
Natural Gas Business in Japan◼

Natural Gas Sales Volume (1m3 =41.8605MJ)➢ FY2022 (actual): 2.20 billion m3➢ FY2023 (forecast): 2.11 billion m3➢ Distribution outlook: 2.70 billion m3 in 2030◼

Naoetsu LNG Terminal➢ Commenced commercial operations in December 2013
➢ First Ichthys LNG cargo arrived in October 2018 (Pacific Breeze)➢ First LNG cargo carried by Oceanic Breeze from the Ichthys LNG Project arrived in February 2019
➢ The 60th LNG cargo arrived in July 2023◼

Natural Gas Pipeline Network➢ Natural gas trunk pipeline network stretching approximately 1,500km across the Kanto, Koshinetsu and Hokuriku regions➢ Construction of new pipelines• Commenced the 5th stage extension of the Shin Tokyo Line in March 2022（Fujioka City in Gunma Prefecture to Honjo City in Saitama Prefecture,
15.9km, scheduled completion in end 2024）• Completed the first stage double tracking of Ryomo Line in February 2023 (Sano City in Tochigi Prefecture to Tatebayashi City in Gunma
Prefecture, 5.3km）◼

Supply of Carbon Neutral Products➢ Started supplying carbon neutral gas to wholesalers since 2021

Copyright © 2023 INPEX CORPORATION. All rights reserved.

27

Project Highlights – Oil and gas business –CORE AREA #5 Europe
Snorre Project etc. in Norway

◼

◼
◼
◼

◼
◼
◼
◼
◼

Snorre Oil Field➢ Operator: Equinor➢ Production Start-up: 1992
➢ Milestones•
2022: Completed Snorre Expansion Development Construction Project•May, 2023: Hywind Tampen (floating offshore wind power) started supplying power to Snorre production facilities
Fram Oil Field➢ Operator: Equinor➢ Production Start-up: 2003
Vega Oil and Gas Field➢ Operator: Wintershall Dea➢ Production Start-up: 2010
Duva Oil Field➢ Operator: Equinor➢ Production Start-up: 2021
In addition, 6 oil fields (Tordis, Vigdis, Statfjord East, Sygna, Fram H-North, Byrding) are in production

In January 2022, completed acquisition of 50.5% shares in Idemitsu Snorre Oil Development Co., Ltd. (New company name: INPEX Norway Co., Ltd.)
that owns 10 oil & gas assets in production or under development, including the Snorre Project, as well as interests in multiple promising discovered
but undeveloped oil & gas fields and exploration licenses.
Conducting exploration activities mainly in the area in the vicinity of existing oil and gas fields including PL1130 where INPEX is the Operator with
60% participating interest.
In April 2022, discovered oil and gas deposits at Offshore Block PL293B (10% INPEX Idemitsu Norge interest)
Development solutions for several discovered oil and gas fields are under consideration.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

28

Project Highlights – Oil and gas business –OTHER AREAS
Kashagan Oil Field and others
INPEX North Caspian Sea, Ltd.
◼
◼
◼

Operator: North Caspian Operating Company(NCOC)
PSA: Until the end of 2031* (Kashagan)
Milestones➢
Oil shipments at Kashagan Oil Field commenced in October 2016➢
Operations ongoing targeting 450,000 barrels per day* Current PSC provides an option to extend the contract period by 10 years (until 2041)

ACG Oil Fields
INPEX Southwest Caspian Sea, Ltd.
◼
◼

Operator : BP
PSA: Until 2049*◼

* The extension of the PSA until 2049 was agreed
in 2017.

Milestones➢
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.
➢
In September 2021, achieved 4 billion barrels in cumulative oil production

Sakhalin-1
Sakhalin Oil and Gas Development Co., Ltd.
◼
◼
◼
◼

Participating in Sakhalin-1 Project through SODECO (Sakhalin Oil and Gas Development Co., Ltd.)INPEX’s share in SODECO: approx. 6.08%
Operator: SMNG-Shelf
Milestones➢
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 in January 2015➢
Currently supplying natural gas to Russian market➢
Rights and obligations in accordance with the PSA were transferred to the Sakhalin-1 limited liability company newly established by the Russian president’s
decree and Russian government decree signed in October 2022

Copyright © 2023 INPEX CORPORATION. All rights reserved.

29

Project Highlights – Oil and gas business –OTHER AREAS
BTC (Baku-Tbilisi-Ceyhan) Pipeline Project
INPEX BTC Pipeline, Ltd.
◼
◼
◼

Operator : BP
Oil export volume*:➢ approx. 643 thousand bbl/dMilestones➢ Acquired a 2.5% participating interest in the operating company (BTC Co.) through INPEX BTC 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
➢ Cumulative export volume reached 4,000 million bbls on January 18, 2023
*Average transportation volume for May 2023

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

Operator: LUKOIL*1 Exploration, Development and Production Service Contract*2 Exploration Period has been extended by 4 years for further exploration
Block acquired: December 2012
and appraisal works to be conducted, in accordance with the EDPSC(Republic of Iraq 4th Licensing Round)*3 The current service contract provides the option to extend theDevelopment and Production Periods by 5 years
EDPSC*1➢ Exploration Period: 9 years (Until December 2, 2021)*2➢ Development and Production Period: 20years*3
Milestones➢ 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 the Contract Area, an extension application for the Contract Area was submitted and approved in
November 2017.
➢ Exploration and evaluation work is underway to study the possibility of commercial development.
➢ Commercial declaration and outline development plan were approved by Iraqi authorities in March 2023.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

30

Project Highlights – 5 net zero businesses businesses –Net Zero Businesses #1 Hydrogen & Ammonia
Integrated Demonstration of Hydrogen & Ammonia Production(Kashiwazaki City, Niigata Prefecture, Japan)◼
◼

In October 2022, took a final investment decision (FID) on drilling operations and the construction of facilities associated with a demonstration of abusiness model to produce carbon-free hydrogen & ammonia through a natural gas reforming process.
Completed landscaping work of oa blue hydrogen & ammonia production plant in May 2023 and held groundbreaking ceremony to commence
construction of surface plant facilities. Aim to start operation in 2025.

Blue Hydrogen Project (Niigata Prefecture, Japan)◼

Based on the results of the above initiative, aim to construct a blue hydrogen production plant utilizing INPEX natural gas fields and existing
infrastructure and produce hydrogen on a commercial scale by around 2030 (100-thousand-ton scale).

Clean Ammonia Business (Abu Dhabi)◼

Conducted a joint study with ADNOC, JERA and JOGMEC on exploring the commercial potential of a clean ammonia production business in the UAE.

Clean Hydrogen Business Overseas (Australia, Abu Dhabi, Indonesia etc.)◼
◼

Promote business expansion through feasibility studies and collaboration, aiming at large-scale project development overseas. Now pursuing
opportunities in the hydrogen production, liquefaction, offloading and shipping business.
A feasibility study to establish a Darwin Clean Hydrogen Hub for the Australian and international hydrogen supply chain, to be conducted byAustralian oil and gas giant Santos, together with UK consultancy Xodus and the Commonwealth Scientific and Industrial Research Organization(CSIRO), has been selected for an Australian government grant program.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

31

Project Highlights – 5 net zero businesses businesses –Net Zero Businesses #2 CCUS
(Reduction of CO2 emissions from upstream operations)
CO2EOR Demonstration (Agano City, Niigata Prefecture, Japan)◼
◼
◼

In April 2021, commenced a joint study with JOGMEC for a CO2 enhanced oil recovery pilot test.
Commenced drilling in preparation for a pilot test in June 2022, completed in January 2023.
Aiming to commence CO₂ injection tests by the end of 2023.

CO2EOR (Abu Dhabi)◼

Aiming to increase CCUS capacity of ADNOC Onshore CO2EOR activities from the current 0.8 million tons per year with ADNOC.

Ichthys LNG Project CCS (Australia)◼
◼

◼

Aiming to sequester CO2 separated from natural gas and captured at the INPEX-operated Ichthys LNG plant.
In August 2022, began joint research with JOGMEC for CCS business opportunity assessment at Australian LNG operation, and awarded a GHG
assessment permit (G-7-AP) at offshore Northern Territory, Australia. 3D-seismic data acquisition and evaluation work including well drilling for thisarea planned in 2023-24.
Introduce CCS to Ichthys in the late-2020s and begin injecting 2 million tons or more of CO₂ per year as a first step.

Promotion of CCS/CCUS business development in Japan & overseas◼
◼
◼

Conduct surveys of suitable CCS/CCUS locations and technical development in Japan and overseas. Make full use of knowledge, experience andassets in the oil and natural gas sector with the aim of commercializing the CCS/CCUS business.
In February 2023, signed a joint collaboration agreement (JCA) with Petroleum Sarawak Berhad (PETROS) concerning the potential development of acarbon capture and storage (CCS) project targeting CO₂ emitted from gas fields with high concentrations of CO₂, petrochemical industries, power
plants, manufacturing industries and other sources in Sarawak, Malaysia.
Officially Awarded both Tokyo Metropolitan Area CCS Project and Tohoku Region West Coast CCS initiative Project as a part of FY2023 “Survey on
Implementation of Advanced CCS Projects” commissioned by JOGMEC.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

32

Project Highlights – 5 net zero businesses businesses –Net Zero Businesses #3 Renewable Energy
Offshore Wind Power Project （Europe）
Luchterduinen Offshore Wind Farm
◼ Year of participation : 2022
◼ Design: Fixed-bottom➢ Milestones:• Commercial operations started in September 2015
Borssele III/IV Offshore Wind Farm
◼ Year of participation : 2022
◼ Design: Fixed-bottom◼ Milestones:• Commercial operations started in January 2021

Moray East Offshore Wind Farm
◼ Year of participation : 2023
◼ Design: Fixed-bottom◼ Milestones:• Commercial operations started in April 2022

Offshore Wind Power Project (Nagasaki Prefecture, Japan) (Floating)◼
◼

INPEX joined the consortium of the Goto Floating Wind Farm project in Nagasaki prefecutre.
In April 2022, was awarded Japan’s first public offering plan certification by the Ministry of Economy, Trade and Industry (METI) and the Ministry ofLand, Infrastructure, Transport and Tourism (MLIT) of Japan. Construction work began in the same year.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

33

Project Highlights – 5 net zero businesses businesses –Net Zero Businesses #3 Renewable Energy
Geothermal Power Projects in Indonesia
Muara Laboh Geothernal Power Project◼
Year of participation : 2021◼
Operator:PT Supreme Energy Muara Laboh◼
Milestones➢ Commenced operation in December 2019
➢ Considering further expansion (Phase 2)

Rantau Dedap Geothermal Power Project◼
Year of participation: 2022◼
Operator : PT Supreme Energy Rantau Dedap◼
Milestones:➢ Commenced operation in December 2021

Rajabasa Geothermal Power Project◼
Year of participation : 2022◼
Operator:PT Supreme Energy Rajabasa◼
Milestones➢ Conducting exploration activities
Sarulla Geothermal Power Project◼ Year of participation : 2015◼
Operator: Sarulla Operations Ltd.
◼
Milestones:➢ In 2014, commenced construction➢ In March 2017, commenced commercial operations of the firstunit➢ In October 2017, commenced commercial operations of thesecond unit
➢ In May 2018, commenced commercial operations of the thirdunit

Geothermal Power Projects in Japan◼

◼

In June 2022, resolved to enter the construction phase of the Geothermal Power Project in the Oyasu area, Yuzawa City, Akita Prefecture, Japan.
Conducting preparations toward commencement of operations in March 2027.
Continuing geothermal surveys at Amemasudake (Hokkaido).

Copyright © 2023 INPEX CORPORATION. All rights reserved.

34

Project Highlights – 5 net zero businesses businesses –Net Zero Businesses #4 Carbon Recycling & New Business
Methanation (Nagaoka City, Niigata, Japan)◼

As a NEDO-sanctioned project, promoting technical development by constructing to launch a methane production capacity of 400 normal cubic
meters per hour, and selling it through our gas pipeline. Transitioning to EPC(Engineering, Procurement, Design) work.

Artificial Photosynthesis (Australia)◼
◼

Participated in ARPChem (Japan Technological Research Association of Artificial Photosynthetic Chemical Process) since 2012. Have been
participating in phase 2 since March 2022.
In December 2022, the joint team of INPEX and the University of Tokyo, supported by ARPChem, won fist place at international artificial
photosynthesis competition (out of 22 teams).

Drone Business◼
◼
◼

In February 2021, made an investment in Terra Drone Corp and commenced joint studies on the INPEX-Terra Drone Intelligent Drone Plan.
In 2022, conducted a drone flight demonstration test using LTE communications together with Mitsubishi Heavy Industries, Ltd., Mitsubishi Heavy
Industries Machinery Technology Corporation, and INPEX Pipeline Co., Ltd., in Kashiwazaki City in Niigata Prefecture, Japan.
Studying implementation of inspection by drones of plant and long-distance pipeline networks.

Net Zero Businesses #5 Forest Conservation

Forest Conservation◼
◼

In February 2021, entered into an agreement with regards to Rimba Raya Biodiversity Reserve REDD+ managed by infiniteEARTH for the purpose oflong-term carbon credits acquisition. Currently working to support the project.
Project evaluation is underway to select suitable sites for acquiring new forest credits.

Evaluation of Carbon Farming and Renewable Biofuels (Australia)◼

In March 2022, commenced collaboration with ANZ and Qantas to evaluate a carbon farming and renewable biofuels project.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

35

Other Data and Information

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 thecurrent period
capital expenditures recovered during the current
periodRecoverable 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 © 2023 INPEX CORPORATION. All rights reserved.

Contractor Take37

Accounting on Production Sharing Contracts

Cash Out

Assets on Balance Sheet

Income Statement

Project under
exploration phase

Exploration
Expenditures

Recoverable accounts
under production sharing

Provision for allowance for recoverable accounts
under production sharing

Project under development
and production phase
Cost of sales

Development
Expenditures◼ Recovery of recoverable accounts under production
sharing (Capital expenditures)

Recoverable accounts
under production sharing
Production Costs(Operating expenses)
Project underdevelopment and production phase

Acquisition Costs

Cost of sales◼ Recovery of recoverable accounts under production
sharing (Non-Capital expenditures)

Exploration anddevelopment rights

SG&A◼ Depreciation and amortization

Other Expenses◼ Amortization of exploration and development rights

Copyright © 2023 INPEX CORPORATION. All rights reserved.

38

Accounting on Concession Agreements

Cash Out

Assets on Balance Sheet

Exploration Expenditures

Development
Expenditures

Production Costs(Operating expenses)

Acquisition Costs

Copyright © 2023 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 and amortization)

Cost of sales(Operating expenses)
Cost of sales(Depreciation and amortization)

39

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

Assets on Consolidated
Balance Sheet

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

Consolidated Income
Statement
Net Sales

All production costs are
expensed as incurred

Tangible Fixed Assets

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

Ichthys Downstream entity (IJV)
Sales Revenue
Raw Material Costs(Purchase of Feed Gas from UJV)
Production Costs(Operating Expenses)
Development Expenditures(Depreciation and Amortization)
Interest Expense

Other Income/Expenses(Equity in earnings/losses
of affiliates)
INPEX share of IJV’s net income/loss are reflected as“equity in earnings/losses of affiliates“. Depreciation is
calculated on a straight line basis over the life of the
project.

Note: 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 © 2023 INPEX CORPORATION. All rights reserved.

40

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 and downstream
businesses in Australia, including
the Ichthys LNG Project’s
upstream and downstream
businesses.

Scope of Business
Holds the titles covering the
Ichthys Field and ownership of
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 andthe onshore LNG plant andstorage and offloading facilities.
Purchases feed gas from theIchthys upstream entity andmarkets processed products
including LNG, LPG andcondensate.

Copyright © 2023 INPEX CORPORATION. All rights reserved.

41

Summary of Australian Taxation
Sales
Operating expense⇒(Oil & Gas sales price)×(Sales volume)…………..(1)⇒OPEX incurred in relevant year (+Exploration cost)+CAPEX tax depreciation…………..(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.

Corporate Tax(In Australia)• Undeducted PRRT Expenditure: non-utilized deductible PRRT expenditure can be carried forward to thefollowing year(s), subject to Long Term Bond Rate.
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 of corporate tax paid inAustralia.

Note: Content may change due to tax revisions
Copyright © 2023 INPEX CORPORATION. All rights reserved.

42