Inpex adds exploration blocks near Ichthys

OREANDA-NEWS. Japan's upstream developer Inpex has won additional exploration blocks offshore Western Australia near its Ichthys gas and condensate development, adding to its global upstream oil and gas asset portfolio.

Inpex said today it has won exploration permits for two offshore blocks, WA-513-P and WA-514-P, in the Browse basin jointly with Australian independent Santos. The blocks are located about 500km north-northeast off Broome and near large gas reserves including the Inpex-operated Ichthys and Shell-operated Prelude and Concerto. Inpex will hold a 40pc participating interest in the two blocks, while operator Santos will own 60pc. Inpex and Santos are also partners in deepwater exploration off Malaysia.

The latest acquisition will increase the number of the Japanese firm's exploration permits or retention leases to 13 in the vicinity of Ichthys, in line with its strategy to maximise the potential value of the Inpex-operated Ichthys LNG development project. The 8.4mn t/yr Ichthys is scheduled to begin LNG shipments by late 2016.

Inpex has been stepping up the hunt for upstream assets, while continuing efforts to optimise its global upstream portfolio. The company this month was awarded an onshore exploration permit in Australia's Northern Territory but parted with its interests in an onshore US gas block. Inpex is targeting to boost its oil and gas equity output to above 1mn b/d of oil equivalent (boe/d) in the early 2020s compared with the current level of around 400,000 boe/d.

Japan's trade and industry ministry (Meti), prompted by the current oil's price slump, has also been encouraging Japanese firms to bargain hunt for additional upstream assets overseas as part of its efforts to increase oil and gas output and improve energy security. Meti has secured ?49bn (\$418mn) for state energy agency Jogmec's upstream financing for the 2015-16 fiscal year starting 1 April, compared with a 2014-15 budget of ?47bn and a supplementary budget of ?9.8bn. Jogmec this month provided about ?24bn in equity financing for Inpex' two exploration ventures offshore Malaysia.