KEY FACTS

The Ichthys Field represents the largest discovery

of hydrocarbon liquids in Australia in 40 years,
estimated at more than 500 million barrels
(or 80 billion litres).
The onshore Ichthys LNG plant in Darwin will
be like a giant refrigeration unit, cooling the
gas to its liquid form (liqueed natural gas or
LNG) which occupies just one 600th of the space
occupied by the gaseous form, making it easier to
transport.
Australia is expected to become the worlds rst
or second ranked LNG exporting country by 2020.
The Ichthys Project is expected to produce 8.4
million tonnes of LNG and 1.6 million tonnes of
liqueed petroleum gas (LPG) per annum, along
with approximately 100 000 barrels of condensate
per day at peak.
The Ichthys Project is a world-class project
to develop the gas and condensate eld
discovered in the Browse Basin approximately
220 kilometres off the north-west coast of
Western Australia.
It is being steered forward by the Ichthys Joint
Venture of INPEX with major participant Total
and Tokyo Gas, Osaka Gas, Chubu Electric and
Toho Gas. This multi-billion dollar project will
be ranked among the largest gas processing
developments in the world.
The Project will deliver signicant social and
economic benets to the Northern Territory
and wider Australia.
Ichthys onshore facilities plan
Ichthys Project
Ichthys Project Securing the Future
The Browse Basin contains some
of Australias largest gas and
condensate elds and covers
approximately 140 000 square
kilometres.
The Ichthys Field is located in
the Browse Basin approximately
220 km off the coast of Western
Australia and 820 kilometres
south-west of Darwin.
It covers an area of around 800
square kilometres and is made
up of two reservoirs, Brewster
and Plover. The water depth in
the eld is relatively shallow,
averaging 250 metres.
The Ichthys Field contains
resource estimates of more than
12 trillion cubic feet of gas.
The eld also contains the
largest discovery of hydrocarbon
liquid in Australia in 40 years,
estimated at more than 500
million barrels of condensate.
Ichthys Project
The Ichthys Project had its origins in 1998
when INPEX acquired the exploration permit
covering what is now known as the Ichthys
Field in the Browse Basin off the coast of
Western Australia.
In 2000 and 2001 INPEX drilled three exploratory wells
and conrmed that the eld had promising resources of
natural gas and condensate. In September 2008, Darwin
was announced as the preferred onshore location for the
Ichthys LNG plant.
INPEX made its nal investment decision on the
Ichthys Project in January 2012. In March of the same year,
two production licences were granted over Ichthys Field.
The Ichthys LNG plant at Blaydin Point on Middle Arm
Peninsula in Darwin Harbour is expected to produce
8.4 million tonnes of LNG and 1.6 million tonnes of LPGs
(propane and butane) per annum, along with 15 000 barrels
of condensate per day at peak. The greater part of the
condensate, some 85 000 barrels per day at peak, will be
processed offshore and exported directly from the eld.
Biggest liquids nd since Bass Strait
Massive steel chains will secure the oating CPF to the seabed
The CPF will be the biggest semi-submersible platform ever built
Central processing facility
The Projects central processing facility (CPF) will gather
the natural gas and condensate from the elds subsea
wells in accordance with the strictest environmental and
safety conditions.
The gas will undergo initial processing at the CPF to extract
condensate and water, making the gas suitable for transmission
through the gas export pipeline. A proportion of the condensate
will be pumped with the gas to Darwin but the bulk of it will
be transferred from the CPF to the oating production, storage
and offtake vessel (FPSO) for offshore processing.
At 110 by 110 metres, the Ichthys CPF will be the biggest
semi-submersible platform ever built and the rst in
Australian waters. It will include accommodation for 150
personnel and a helipad. It will be permanently secured
by 28 massive steel chains to moorings in the seabed to
withstand the extreme weather conditions often experienced
in Australias tropical north.
The subsea production system, which will require
approximately 50 wells over the 40 year life of the eld,
will be connected to the CPF by a network of owlines.
Offshore Facilities
Plan of the offshore facilities at the Ichthys Field
PIPELINE FACTS
1.2 million tonnes of concrete coated pipeline
(690 000 tonnes of steel).
Two years to manufacture 75 000 joints and coat
with concrete and one year to install.
More than 600 personnel will be required on the
pipelay barge during the pipeline construction
phase.
It will be the longest offshore gas pipeline
in the southern hemisphere.
It will be the fth longest offshore gas pipeline in
the world.
Floating production, storage
and offtake vessel
The oating production, storage and offtake
(FPSO) vessel is an offshore facility, stationed about
3.5 kilometres from the CPF, that further processes
the condensate, ensuring that water and other
impurities are removed.
Like the CPF, the FPSO is secured by moorings chains
to the seabed to withstand extreme weather conditions.
The Ichthys FPSO is designed to hold more than one
million barrels of condensate, which will be periodically
ofoaded to shuttle tankers that take the fuel direct
to market. Like the CPF, it will have the capacity to
accommodate around 150 personnel.
Pipeline to Darwin
Subsea gas pipelines are of high quality carbon-steel,
coated externally with anti-corrosion materials and
concrete to provide stability.
They lie on the seabed and in areas of high ship trafc are
protected by rock armour or buried. The Ichthys pipeline will
deliver the gas from the CPF to the onshore processing plant
at Blaydin Point in Darwin. It will be marked clearly on all
navigation maps.
With an offshore component of 883 kilometres (and a further
6 kilometres onshore), the Ichthys pipeline will be the largest
offshore pipeline in the southern hemisphere, and one of the
longest subsea pipelines ever built. The pipeline will use
690 000 tonnes of steel.
In Darwin Harbour, from approximately 15 kilometres from
the shore crossing near Blaydin Point, the pipeline will be
placed in a trench and covered with rock for added protection.
This part of the pipeline will become an articial reef just like
the existing BayuUndan pipeline which carries gas from the
BayuUndan Field to the Darwin LNG plant at Wickham Point.
The pipeline in Darwin Harbour will become an articial reef
The Ichthys FPSO will be built to hold more than one million
barrels of condensate
STEP 3 STEP 5 STEP 1 STEP 2 STEP 4
Business ow (image)
Oil and Natural Gas Business
The business activities of the oil industry can be envisioned as the ow of a river. The
upstream consists of the development and production of oil and natural gas. The midstream
is where products are transported. The downstream refers to rening and sales. Our
mainstay business is to handle operations in the upstream including discovery, drilling,
collecting and selling crude oil and natural gas, which exists underground. As shown in the
business ow below, business activities in the upstream can be further classied into the
acquisition of blocks, exploration, appraisal, development and production and sales.
Acquisition of
Blocks
Exploration Appraisal Development
Production and
Sales
Investment for
further exploration,
purchase of assets,
etc.
(Expansion of reserves and
production volume)
We collect extensive information
on laws and country risks related to
areas in which oil and natural gas are
expected to exist. We then apply and
bid for mining rights and/or exploration
and development rights, and entered
into a contract for exploration and
development.
In addition to terrestrial geological
surveys, we utilize geophysical surveys
conducted through aerial photographs,
satellite images and seismic waves in
order to assess the potential subsurface
accumulations of oil and natural gas.
Furthermore, we drill exploratory wells
in order to conrm the presence of oil
and gas elds.
Once the presence of oil and natural gas
has been conrmed through exploration
activities, we drill an appraisal well to
assess the extent of the oil and gas elds.
We conduct a production test and evaluate
the amount of reserves. In addition, we
make comprehensive judgments regarding
the commercial viability of the elds. For
example, we examine protability and
create development plans.
We drill production wells for the
production of oil and natural gas. We
also construct processing facilities
to separate oil and gas, and remove
impurities and production, and shipping
facilities such as a pipeline to transport
oil and gas.
We perform production and operation
management such as rening/
treatment to create products from the
oil and natural gas excavated from
the production wells. We also perform
marketing and sales for the produced
crude oil, condensate, LPG, natural gas
and LNG.
Offshore geophysical survey
Satellite
Offshore drilling rig (platform) Onshore rig
LNG tanker LNG receiving terminal
Consumer
demand
What is oil and natural gas?
Both oil and natural gas are types of organic matter (hydrocarbons) formed from a combination of carbon and
hydrogen. Oil is a chemical compound in which large numbers of carbon molecules and hydrogen molecules are
joined together. Under normal conditions (one atmosphere, which is about 15 pounds per square inch; conditions
suitable for human life), oil is a liquid. Conversely, natural gas is a gas under normal conditions. Although there
are differences between the properties of liquid and gas, both burn well.
The oil and gas generated deep underground have a lighter specic
gravity than the water and soil in geological layers and therefore rise upward
over a period of many years. However, when contacting high-density
geological layers through which they cannot pass, the oil and gas stop rising
and form an oil eld or a gas eld.
Depending on the excavation site, crude oil and natural gas exhibit
a variety of differences in terms of color (from colorless and transparent to
black), specic gravity, viscosity and amount of impurities. Samples of crude oil and condensate
Source rock
Reservoir
rock
Cap rock
Oil/gas
Thermoforming of organic matter
Heat/pressure
Contracts with government of
oil-producing countries
Contracts can mainly be divided into concession
agreements and production sharing contracts.
Both contracts normally contain a commitment
for required exploration work in order to locate
oil and natural gas.
Geophysical surveys
We investigate underground tectonics such as
the hardness and concentration of rocks that
form the layers of geophysical exploration.
Production test
Oil or natural gas is produced in a test to
conrm if there is a sufcient amount for
commercialization.
Rening/treatment of natural gas
After separating oil and removing impurities
(e.g., carbon gas, hydrogen), we ship natural
gas that can be used as a product.
Drilling of production wells
We drill a well deep into the ground while
joining individual pipes of about 10 meters in
length. The tip of the pipe is equipped with
a special drill known as a bit. The bit drills
through hard rock and digs into the ground.
High pressure
separator Refrigeration unit
To pipeline
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028 INPEX CORPORATION Annual Report 2011 029 INPEX CORPORATION Annual Report 2011
Liqueed Natural Gas
Liqueed natural gas (LNG) is gas that has been cooled
to liquid form, reducing its volume and making it easier
to transport. LNG is clear, odourless and non-toxic.
It is increasingly used as a domestic fuel and provides
cleaner energy than that produced by coal red power
stations as it emits less carbon dioxide over its life cycle
from production to end use.
Liqueed Petroleum Gas
LPG, or liqueed petroleum gas, is extracted from
natural gas. It consists predominantly of propane
and butane but may contain small amounts of other
related compounds.
LPG is colourless and odourless. At normal
temperature, LPG is a gas. When subjected to modest
pressure or cooling, it transforms into a liquid so it can
be easily transported.
LPG is used domestically as a gas to cook with
(e.g. for barbecues), to heat water, and to run cars.
Its main commercial uses are in agriculture, industry,
transportation and power generation.
The Ichthys Project is expected to produce 1.6 million
tonnes of LPGs per annum. They will be produced
separately as propane and butane.
Condensate
Subsurface gas reservoirs contain hydrocarbon uids
at very high pressures and temperatures. When this
pressure is released through the drilling of wells, these
uids are brought to the surface with the gas through
production wells.
The uids then naturally condense into a liquid called
condensate which is a light oil that can be rened into
petroleum products. The Ichthys Project will produce an
estimated 100 000 barrels of condensate a day at peak.
Ichthys condensate is a low-density fuel with similar
qualities to light diesel and is generally straw coloured.
Because Ichthys condensate is a light product, if released
into water a high proportion of the condensate (7080%)
would evaporate within the rst day of release.
The LNG Cycle
Employment opportunities
A small army of personnel is needed
to construct and operate major gas
development projects. Such projects drive
local economies and attract oil and gas
workers from all over the world.
The Ichthys Project is no exception and
is expected to create more than 4000
direct jobs at the peak of the onshore
construction phase. Many more jobs will
be created indirectly in the Australian
community as the economy expands
to meet the demand generated by this
massive construction effort.
Approximately 740 permanent positions
will be created during the Projects
operations phase to operate and maintain
the offshore and onshore facilities.
Personnel will include project managers,
plant operators, engineers, a range of oil
and gas specialists, as well as providers
of catering, laundry and cleaning services.
Gas buyers
About 70% of Ichthys LNG will be exported to the Japanese
market. Gas will also be sold to Taiwan.
Ichthys condensate and LPGs will be sold on the world market.
Australia is currently the worlds fth largest LNG exporter.
Australia is poised to become the worlds rst or second
leading LNG exporter over the next decade.
At INPEX one of our values is Anzen Dai Ichi Safety Number One.
This helps guide the way we think, act and promote safety.
We look out for the safety of ourselves, the people we work
with and the communities in which we operate.
An illustration of a LNG carrier
LNG plant in Darwin
The LNG plant is like a giant refrigerator for natural gas.
Its two processing trains will cool the gas to around minus
160 degrees Celsius, transforming it into liquid to reduce its
volume to one 600th of the space taken up by the gaseous form.
This makes it economical to transport the LNG to market.
The Ichthys LNG plant will be more than twice the size of the
existing Darwin LNG plant at Wickham Point.
Onshore Facilities
Shipping
LNG carriers are large clean ships, with heavily insulated
tanks to keep the LNG cool. The carriers will use a
combination of boil-off gas from the LNG cargo
and diesel fuel to power through international waters.
The Ichthys Project will require three LNG tankers and one
LPG tanker to export product through Darwin Harbour each
week as well as one or two condensate tankers each month.
INPEX
Level 22, 100 St Georges Tce
Perth WA 6000
Phone: 1800 705 010
Email: info
@
ichthysproject.com
www.inpex.com.au
The Ichthys Project is operated by INPEX in joint
venture with major participant Total and Tokyo
Gas, Osaka Gas, Chubu Electric and Toho Gas
Level 8, Mitchell Centre
59 Mitchell Street
Darwin NT 0800