Ichthys LNG Project Yoshiki Maeda, INPEX Insurance Manager 24 October 2013 Commercial-in-Confidence 1
Agenda Introduction to INPEX Corporation Flythrough video of the Ichthys Project Introduction to the Ichthys Project Ichthys Project insurance Insurance placement - challenges Key to successful insurance placement 2
INPEX Corporation INPEX is a global oil and gas company headquartered in Tokyo Listed on the Tokyo Stock Exchange. Ranked in the top 100 global energy companies Market capitalisation equivalent to AUD$18 billion More than 70 projects across 28 countries Interests in large LNG projects Ichthys LNG, Prelude FLNG, Tangguh LNG, Abadi FLNG and Darwin LNG 3
Major assets 4
Proved Reserves* 5
Production Volume* 6
Ichthys Project location Gas Field 7
Development concept Central Processing Facility LNG, LPG, Condensate Floating Production, (CPF) Storage and Offloading Condensate (FPSO) Darwin Onshore LNG Plant Offtake Tanker Flowline Flexible Riser UpstreamDownstream Gas Export Pipeline(GEP) Subsea Production System 8
Subsea wells and infield flowlines 9
CPF and FPSO Hull size approx. 110m x110m. World s largest semi-submersible, similar in size to GOM Thunder Horse. Living quarters: 150 people Flexible Riser will be installed on North side. Turr et Approx. 333m x 56m Liquid from CPF will be transferred through Turret Storage capacity: More than 1 million barrels Gas will be backed to CPF after re-pressurisation Living quarters: 150 people Ima ge 10
Onshore facilities location 11
Onshore facilities Ground Flare Condensate Stabilisation LPG Tanks LPG & condensate jetty LNG jetty Power Plant LNG Trains LNG Tanks Condensate Tanks Module Offloading Facility (MOF) 12
Project highlights Final investment decision: 13 January 2012 First production target by end of 2016 Production rates o LNG : approx. 8.4 million tonnes per year o LPG : approx. 1.6 million tonnes per year o Condensate : approx. 100,000 barrels per day at peak. Project share: 13
Project highlights CAPEX: US$34 billion Financing: Arrangement for US$20 Billion of project financing with ECAs and major commercial banks were completed in December, 2012 Insurance: Construction All Risks Insurance for both Offshore and Onshore for construction works completed February, 2013 14
Strengths of the Ichthys Project Wet gas with rich Condensate and LPG Characteristics / strengths of the Project Good coordination and relationship with TOTAL Sufficient period of FEED prior to FID o Thorough review on engineering + works to minimize scope change o More accurate cost estimation Major/reliable EPC contractors involved High degree of lump-sum for EPC contracts (approx. 75 per cent of the price) LNG SPAs with major/reliable buyers Large-scale project finance secured Insurance arrangements for project facilities during the construction period 15
Project Schedule 16
EPC contractors Upstream o CPF: Samsung Heavy Industries o FPSO : Daewoo Shipbuilding & Marine Engineering o Subsea Production System (SPS): GE Oil & Gas o Umbilical, Riser and Flowline (URF): McDermott Downstream o Onshore LNG Plant : JGC Corporation, Chiyoda Corporation and KBR (JKC) o Gas Export Pipeline(GEP): Saipem S.p.A, Mitsui Corporation, Sumitomo Corporation and Metal One Corporation o Dredging in Darwin Harbor: Van Oord 17
Key locations of EPC works 18
Marketing 19
Project Insurances Construction Phase main policies o Construction All Risks Insurance (Replacement Value Basis) o Third Party Liability Insurance (incl. Pollution Liability) o Operators Extra Expense Insurance o Protection and Indemnity Insurance o Marine Cargo Insurance Operation Phase - main policies (planned) o Property All Risks Insurance o Third Party Liability Insurance (incl. Pollution Liability) o Operators Extra Expense Insurance o Protection and Indemnity Insurance 20
Various stakeholders of Insurance DSME SHI External Saipem EPC Contractors Lenders Technical Consultants McDermott Insurance Consultants JKC Lenders Insurance Markets Brokers Lawyers Internal Ichthys Project Project Controls Team Offshore Project Team Onshore Project Team INPEX TOTAL Chubu Electric Toho Gas Osaka Gas Tokyo GAS Joint Venture Partners Risk Manager 21
Insurance Placement challenges Placement of Capacity Risk Complying with Lenders requirement Local Fronting Arrangement Issues Onshore LNG facilities site, Darwin (September 2013) Cooperating with Insurance Broker Manigurr-ma Village, Darwin (August 2013) 22
Key to successful Insurance Placement Good communication with stakeholders Consistent approach in contractual relationships Selection of well experienced insurance brokers Gas Export Pipeline coating 23
Thank you 24