Segment Overview Asia & Eurasia Oceania u p. 24 u p. 16 1 Number of countries 22 14 7 1,551 4 3 39 2 6 2 Number of projects 1 ,296 In production 1 1,245 Under development 1,218 Preparation for development 1,145 Under exploration Other 367 Reserves/Production Proved reserves (million boe) 214 210 88 85 90 88 201 197 79 191 1 1 1 1 1 167 Net production (thousand boed) 166 32 28 27 26 25 25 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 485,275 485,069 483,187 409,776 406,828 Net sales/Operating income 302,871 299,599 281,623 Net sales (¥ million) 264,849 235,814 Operating income (¥ million) 178,225 94,050 97,204 85,541 96,341 84,325 68,319 66,852 47,076 42,601 41,752 36,461 32,228 13,832 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 14 INPEX CORPORATION Annual Report 2016 Middle East 6 2011 2011 350,735 135 & Africa 243,113 583 2012 2012 500,033 155 354,136 518 2 u 20 20 p. 26 13 13 520,835 158 357,343 505 9 2014 2014 621,513 168 421,184 857 2015 2015 524,528 169 333,213 783 7 2016 2016 516,513 248 290,866 1,742 4 Project Overview Project 2011 2011 7 12,673 21 Americas （3,035） 30 2012 2012 5,525 18 （5,518） 36 20 20 u 5 13 13 5,945 17 p. 28 （6,089） 68 1 15 2014 2014 11,435 20 （7,646） 65 2015 2015 13,351 21 （15,303） 74 9 2016 2016 13,727 23 （14,002） 36 2011 2011 104,525 25 1 25,959 117 2012 2012 113,662 28 Japan 24,607 138 20 20 u ( Approx. 1,400km Approx. 13 13 Minami-Nagaoka Minami-Nagaoka 118,937 29 pipeline network p. 30 28,568 130 Naoetsu LNG Natural gas Natural Gas Field Terminal 2014 2014 27 120,268 etc. 22,771 174 2015 2015 129,522 25 16,693 163 2016 2016 ) 109,601 26 12,096 153 15 INPEX CORPORATION Annual Report 2016 Project Overview by Region Asia & Oceania In the Asia and Oceania region, INPEX holds participating interests in the Offshore Mahakam Block in Indonesia, which is contributing significantly to earnings, and the large-scale Ichthys and Abadi LNG projects, where development and preparatory development activities are under way. The Company is also actively advancing more than 20 exploration projects with growth potential across the region. 16 INPEX CORPORATION Annual Report 2016 1 Offshore Mahakam Block and Attaka Unit INPEX entered into a production shar- quently made a series of discoveries The Offshore Mahakam Block ing contract (PSC) with the Indonesian in the Bekapai (oil), Handil (oil), Tam- has begun to see output decline after Government in October 1966, at that bora (oil and gas), Tunu (gas), Peciko more than 40 years of production. In time acquiring a 100% interest in the (gas), Sisi and Nubi (gas), as well as the 2012, impediments at production Offshore Mahakam Block. The Attaka South Mahakam (gas), fields, each of wells led to a large drop in output, in Unit was established in April 1970 which has continued to produce crude addition to natural attrition. Thereafter, through the unitization of part of the oil and natural gas. The crude oil and successful steps were taken to control adjacent blocks owned by INPEX and condensate produced from these the decline in production by advanc- Unocal (now Chevron), with each com- fields are shipped mainly to oil refin- ing efforts to counter sand problems pany taking a 50% interest. Produc- eries and power companies in Japan and accelerate the pace at which the tion of crude oil and natural gas has by tanker from the Santan and Senipah Company undertakes development continued since 1972. INPEX farmed terminals. Most of the natural gas is well drilling. Despite these endeav- out 50% of its interest in the Offshore supplied to the Bontang LNG Plant, ors, production is still expected to Mahakam Block to CFP (now TOTAL) and then shipped as LNG to custom- decrease gradually in the future. in July 1970. This venture subse- ers in Japan and elsewhere. Contract area Project status Venture company Interest owned (block) (production on the basis of all fields and average rate of FY2015) (established) (*Operator) Crude oil: 73 Mbbld Offshore Mahakam INPEX CORPORATION INPEX 50% TOTAL* 50% In production Natural gas: 1,452 MMcf/d (February 21, 1966) Attaka Unit LPG: 7 Mbbld INPEX 50% Chevron* 50% Bontang LNG Plant Attaka Unit Santan Terminal Attaka Field Badak Field Nilam Field Tunu Field Tambora Field 4 Sisi Field Overview Project Handil Field Nubi Field Senipah Terminal Bekapai Field Balikpapan Peciko Field Offshore INDONESIA Mahakam Block South Mahakam Field Gas field Oil field Oil and gas field 1 2 1: Booster station 2: Offshore platform during well drilling work INPEX CORPORATION Annual Report 2016 17 2 South Natuna Sea Block B FPSO vessel In July 1977, INPEX acquired a 17.5% South Natuna, utilize a world-class interest in the South Natuna Sea Block floating production, storage and off- Natuna Sea B in Indonesia. Later, in January 1994, loading (FPSO) system. Production of North Belut South Natuna Sea Belida Kerisi Block B INPEX increased its total interest in the crude oil and condensate began in Bawal block to 35% with the purchase of an December 2004, with LPG production additional interest. Crude oil produc- commencing in April 2007. After 2006 tion began in 1979, and supplies of at this same block, production began at South Belut Natuna Island natural gas to Singapore via Indone- the Hiu Gas, Kerisi Oil and Gas, North Hiu Belanak sia’s first international pipeline com- Belut Gas and Bawal Gas fields. Most Gas field Oil field Oil and gas field menced in 2001. Additional deliveries recently, production commenced at of natural gas from this pipeline to the South Belut Gas Field in April 2014. Malaysia started in 2002. These supply Project status milestones contributed to the exten- Contract area Venture company Interest owned (production on the basis of all fields and (block) (established) (*Operator) sion of the PSC covering the block average rate of FY2015) until 2028. Crude oil: 22 Mbbld INPEX Natuna 35% South Natuna INPEX Natuna, Ltd. Production operations in the Bela- In production Natural gas: 253 MMcf/d ConocoPhillips* 40% Sea B (September 1, 1978) nak oil and gas field, which is part of LPG: 9 Mbbld Chevron 25% 3 Sebuku Block Ruby Gas Field In September 2010, INPEX obtained Bontang LNG Plant Fertilizer plant a 15% interest in the Sebuku Block off Attaka Field Santan Terminal the shore of South Makassar, Indone- Tunu Field sia. Thereafter, work began to develop Senipah Terminal the Ruby Gas Field in the block, and Balikpapan Peciko Field production of natural gas followed in South Mahakam Field October 2013. The natural gas pro- Kalimantan duced here is transported from off- Makassar Strait shore production facilities via undersea INDONESIA pipeline to onshore storage facilities Sebuku Block that receive products from the Offshore Sulaewesi Mahakam Block. The natural gas is then Gas field mainly sent via inland pipeline to a fer- Oil field Ruby Gas Field tilizer plant in East Kalimantan. Offshore production facility in the Ruby Gas Field Contract area Project status Venture company Interest owned (block) (production on the basis of all fields and average rate of FY2015) (established) (*Operator) INPEX South Makassar, Ltd. INPEX South Makassar 15％ Sebuku In production (Natural gas: 91 MMcf/d) (May 17, 2010) PEARL OIL (Sebuku) Ltd.* 70% TOTAL 15% 18 INPEX CORPORATION Annual Report 2016 4 Abadi LNG Project INPEX acquired a 100% interest in of a substantially greater volume of the Masela Block in November 1998 natural gas reserves, which was certified through an open bid conducted by the by the Indonesian authorities. Having Tanimbar Island INDONESIA Indonesian government and subse- considered ways to optimize a plan Abadi Gas Field Arafura Sea quently went about exploratory activ- of development centered on a large- ities as the operator, discovering the scale FLNG, for example by increasing Abadi Gas Field through the first explor- reserve volume and concept selection AUSTRALIA atory well drilled in 2000. The Company studies, the Company submitted a Timor Sea subsequently drilled two appraisal wells revised plan for the development in 2002 and four in 2007–2008, all of based on an FLNG plant with an which confirmed the presence of gas annual LNG processing capacity of Darwin and condensate reservoirs. 7.5 million tons to the Indonesian In December 2010, Indonesian authorities in September 2015. In April Gas field authorities approved the initial plan 2016, however, the Company received of development (POD-1) deploying a notification from the Indonesian a floating LNG (FLNG) plant with an authorities instructing it to re-propose annual processing capacity of 2.5 a plan of development based on million tons, and from November 2012 onshore LNG. The Company's policy to November 2014, INPEX undertook of aiming for the early start-up of SURF (subsea, umbilical, riser and development remains unchanged, and flowline) and FLNG FEED work. INPEX will pursue the implementation INPEX also drilled three appraisal of the project in the most economically wells between 2013 and 2014 with and technically rational way, in close the aim of expanding the volume of cooperation with its partner Shell and recoverable reserves. Evaluations of the Indonesian authorities. these wells resulted in the confirmation Contract area (block) Project status Venture company (established) Interest owned (*Operator) 4 Project Overview Project Preparation for INPEX Masela, Ltd.