Financial Results for the year ended March 31, 2014 May 12, 2014 0 - PowerPoint PPT Presentation

INPEX CORPORATION Financial Results for the year ended March 31, 2014 May 12, 2014 0

Agenda  Corporate Overview  Outlook  Financial Results for the year ended March 31, 2014  Consolidated Financial Forecasts for the year ending March 31, 2015 1

Cautionary Statement This presentation includes forward ‐ looking information that reflects the plan and expectations of the Company. Such forward ‐ looking information is based on the current assumptions and judgments of the Company in light of the information currently available to it, and involves known and unknown risk, uncertainties, and other factors. Such risks, uncertainties and other factors may cause the Company’s performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by such forward ‐ looking information. Such risks, uncertainties and other factors include, without limitation:  Price volatility and change in demand in crude oil and natural gas  Foreign exchange rate volatility  Change in costs and other expenses pertaining to the exploration, development and production The Company undertakes no obligation to publicly update or revise the disclosure of information in this presentation (including forward ‐ looking information) after the date of this presentation. 2

Corporate Overview Toshiaki Kitamura Representative Director, President & CEO

FY 2014/03 Corporate Highlights (1/3) ■ Proved Increased by 16% YoY to 2.53 billion BOE Reserves ■ Net Production 409 thousand BOED ■ Financial Results ‐ Net sales ¥1,334.6 billion (9.7% increase YoY) (Mar.2014) ‐ Net profit ¥183.6 billion (0.4% increase YoY) ■ Ichthys ‐ Development works (Engineering, Procurement and Construction) progressing in line with the scheduled start ‐ up by the end of 2016 ‐ Project progress rate: Approx.44% ‐ Agreement on the transfer of the Ichthys LNG Project equity interest (2.625%) to CPC ■ Abadi ‐ FEED (Front End Engineering Design) work of SURF (Subsea Production Facilities) completed, FLNG (Floating LNG) FEED work to be completed around the middle of 2014 ‐ Delineation and exploratory drilling works ongoing from June 2013 ■ ADMA block ‐ Extension of the Concession Agreement for the Upper Zakum Oil Field for 15 years (from March 2026 to December 2041) ‐ Fiscal terms and conditions on the Agreement improved 4

FY 2014/03 Corporate Highlights (2/3) Continuous Enhancement of E&P Activities (Medium to Long Term Vision of INPEX ‐ Growth Target No.1) Acquisition of New Exploration Blocks  JPDA11 ‐ 106 contract area in the Joint Petroleum Development Area between East Timor and Australia  Area 15, Oriental Republic of Uruguay  Exploration Block WA ‐ 494 ‐ P, Offshore Western Australia  Zapadno ‐ Yaraktinsky block and Bolshetirsky block, Irkutsk, Russia  Offshore Exploration Licence, P2019 in the northwest of Shetland Island, UK  Offshore Exploration Licenses, Block 9 and Block 14, in the Kanumas Area, northeastern part of offshore Greenland Progress of existing projects  Encountered oil pay in Walker Ridge 95/96/139/140 Blocks, U.S. Gulf of Mexico  The Ruby Gas Field started production in the Makassar Strait, Indonesia  ACG Oil Fields started additional production, Chirag Oil Project, in the Caspian Sea, Azerbaijan 5

FY 2014/03 Corporate Highlights (3/3) Strengthening Gas Supply Chain (Medium to Long Term Vision of INPEX ‐ Growth Target No.2)  Naoetsu LNG Terminal brought on stream Secured New Shipping Vessels for Ichthys LNG Project • Completed construction of “Naoetsu Line” and “Shin Nagaoka Line” in Japan • (Natural Gas Trunk Pipelines) Concluded LNG SPA with Chubu Electric for INPEX’s Naoetsu LNG Terminal • ‐ First LNG carrier arrived at Naoetsu LNG Terminal Opened Singapore Office to strengthen marketing function • Reinforcement of Renewable Energy Initiatives (Medium to Long Term Vision of INPEX ‐ Growth Target No.3 )  Photovoltaic Power Generation “INPEX Mega Solar Joetsu” started power generation. In addition, decision for • Construction of the Second Mega Solar has been made.  Geothermal Energy Development Exploration wells were drilled in Hokkaido and Akita, Japan • Field survey started in Fukushima, Japan • 6

Ichthys LNG Project (1/3)  Proved reserves: Approx. 1,030 million BOE (Based on INPEX’s Participating interest of 66.07%*)  Production volume (expected): ‐ 8.4 million t/y of LNG ‐ Approx. 1.6 million t/y of LPG ‐ Approx. 100,000 bbl/d of condensate (at peak)  CAPEX: US$34.0 billion Ceremony for FPSO Keel Laying (Feb. 2014 in Korea)  Participating Interest: INPEX (Operator) 66.07%*, TOTAL 30%, Tokyo Gas 1.575%, Osaka Gas 1.200%, Chubu Electric Power 0.735%, Toho Gas 0.420%  FID in January 2012  Production start : By the end of 2016  Project progress: Approx. 44% Ceremony for CPF Hull Block Erection (Apr. 2014 in Korea) *Including a 2.625% equity interest in the process of transfer to CPC 7

Ichthys LNG Project (2/3) Offshore Facilities Construction of Riser Support Construction of FPSO Hull (Feb. 2014 in Structure (Jan. 2014 in Indonesia) Korea) Major works for Offshore Facilities done since FID and plans for 2014 2012 2013 2014 Detailed engineering /procurement Fabrication/coating of linepipes for the 890km Gas Export Pipeline (GEP) Fabrication and setup of umbilical, riser & flowline (URF) Fabrication of subsea production system Construction of CPF and FPSO Laying GEP Drilling production wells 8

Ichthys LNG Project (3/3) Onshore Facilities Bird ʹ s ‐ eye view of Onshore LNG Plant Site in Darwin Jun. 2009 Feb. 2014 Construction of LNG storage tanks in Darwin May 2012 Major works for Onshore Facilities done since FID and plans for 2014 2012 2013 2014 Detailed engineering /procurement Accommodation Village for workers Site preparation works Dredging in Darwin Harbour Construction of LNG plant modules Construction of Module Offload Facility for unloading modules Moving LNG plant modules and installation at site Construction of LNG tanks, power plant and production 9 loading Jetty

Abadi LNG Project Comparison Abadi structure and Kanto region ‐  SURF (Subsea Production Facilities) FEED (Front End Engineering Design) work Massive potential reserves commenced in November 2012 and completed in January 2014  FLNG (Floating LNG) FEED work commenced in January 2013 is ongoing  AMDAL (Environmental & Social Impact Assessment) process Submitted the AMDAL report and • application of environmental approval to Indonesian Ministry of Environment in December 2013 to obtain final approval  Further approach for future subsequent development utilizing the gas reserves 3 delineation wells drilled and currently1 • exploratory well drilling is ongoing from June 2013 ■ Plan of Development (POD ‐ 1) ‐ Stage 1 Development ‐ Development Concept : Floating LNG ‐ Production Volumes : 2.5 million t/y of LNG 8,400 bbl/d of condensate ■ Participating Interest ‐ INPEX(Operator) : 65%, Shell :35% 10 FLNG at Abadi (image)

Progress in Enhancing Gas Supply Chain Naoetsu LNG Terminal Indigenous gas source  Start ‐ up of Naoetsu LNG Terminal ‐ Naoetsu LNG Terminal brought on stream in December 2013. Planed to receive LNG cargoes from Ichthys and other LNG projects in the future  Enhancing marketing activities and trading function for crude oil, condensate and LNG ‐ Opened Singapore Office in January 2014  Expansion of Natural Gas Pipeline Network ‐ Started feasibility study on the extension of “Shin Tokyo Line” (the 5 th extension) in February 2014 ‐ “Toyama Line” to start its operation in 2016 11

Topics for FY 2014/03 Upper Zakum Oil Field in ADMA Block Participating Interest: ‐ INPEX(JODCO) 12%, Abu Dhabi National Oil Company 60%, Exxon Mobil 28% Production Facility (artificial island)  Extension of the Concession Agreement for the Upper Zakum Oil Field for 15 years (from 2026 to 2041) / Fiscal terms and conditions on the Agreement for the Upper Zakum Oil Field improved  Development works ongoing to achieve the production capacity at 750 thousand bbl/d and to conduct a study to further raise the production capacity to 1 million bbl/d 12

Net Production* (FY 2014/03) 500 Main increase factor 409 408 ・ Increase in production in Middle East / 400 4% 5% Africa Region due mainly to new line ‐ up of the Angora Block 14 and expansion of the ADMA Block (+9 thousand BOED) 39% (Thousand BOED) 300 41% Main decrease factor ・ Decrease in production in the Kitan Oil Field due to natural decline ( ‐ 6 thousand BOED) 6% 6% 200 44% 41% 100 7% 7% 0 Mar. 13 Mar. 14 Japan Asia/Oceania Eurasia Middle East/Africa Americas * 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 INPEX Group. 13