Ichthy by East Coast Promotions

COMPANY PROFILE

2014

INPEX: Ichthys LNG Project

+61 8 6213 6000 | www.inpex.com.au

Coming up from down under Editorial: Joe Forshaw

Located about 220 kilometres of Western Australia, in the Timor Sea, the Ichthys project is currently taking shape. Representing the largest discovery of hydrocarbon liquids in Australia in 40 years, the Ichthys LNG Project is currently ranked among the most significant oil and gas projects on the planet. Effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and an 889 km pipeline uniting them for an operational life of at least 40 years, this is a project that requires articulate and precise planning. Seiya Ito, Inpex Corporation President Director Australia tells Total World Energy moreâ&#x20AC;Ś Q: What is the history of the project - Why was it first developed? When was the region first explored? Who was responsible? How did INPEX get involved? In an open bid conducted in 1998, INPEX acquired the petroleum exploration permit WA-285-P,

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located in the Browse Basin, off the north-west coast of Western

Thereafter, INPEX obtained the necessary government approvals

Australia. From 2000 to 2001, three exploratory wells resulted in the discovery of an extremely promising gas and condensate field now known as the Ichthys gas-condensate field. Front End Engineering and Design (FEED) work began in 2009.

and concluded LNG sale and purchase agreements (SPA) with gas buyers before making the Final Investment Decision (FID) in January 2012. In December of the same year, the Ichthys LNG Project finalized arrangements for US$20 billion in

INPEX: Ichthys LNG Project project finance loans including those with eight export credit agencies and 24 commercial banks, in what was at the time the biggest project financing ever arranged in the international financial market. The Ichthys LNG Project is now in the construction phase, with first production expected to commence at the end of 2016.

Q: With regard to the LNG plant, why was Darwin chosen? Why was onshore processing facilities chosen over alternative offshore processing facilities, such as FLNG for example? INPEX ultimately selected Darwin as the location for its gas liquefaction and processing facility (LNG plant) for the Ichthys LNG Project as a result of a number of factors, including the need to start up the project and deliver LNG to Japan in a stable and timely manner, and the support the company received from the governments of both the Northern

Territory and Australia. As a capital city, Darwin offered a workforce, operating harbour, an existing LNG operation, infrastructure such as transport, roads, an airport and hospital, all of which made this location very attractive and has been a key factor in the Project being able to have a high level of local employment to date. Onshore processing facilities were selected based on the determination that the Ichthys gas-condensate field would yield a quantity of hydrocarbons sufficient to ensure long-term production, which in turn would be best supported by onshore facilities from an economic standpoint.

Q: For such a complex project, consisting of construction both on and offshore, what have been the most significant challenges? Delivering a mega project safely and according to plan is not easy, especially for one like Ichthys.

Changes in design, delays in engineering, significant workloads at fabrication yards and designing for a 40-year operational life are some of the challenges we are successfully managing. The worldâ&#x20AC;&#x2122;s best contractors, financial security from our investors, highly experienced project managers and an innovative contracting strategy all play a role in addressing these challenges and minimising risk to cost and schedule.

Q: Do you strive to work in partnership with local companies compared to international companies, or is it a mixture of both? What are the benefits to working with either? Given the global nature of the Ichthys LNG Project, we work in partnership both with local companies in Australia, and international companies around the world, all of which provide the knowledge and expertise required

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to oversee the whole chain of development and production components - subsea, offshore, pipeline and onshore. Currently we have more than 30,000 people worldwide working on this US$34 billion project. Nearly 5,000 are on site in Darwin, Northern Territory and nearly 1,000 in Perth, Western Australia.

Q: At what stage is the project currently? Is it all on track to meet the estimated first production in 2016? We are currently proceeding more or less on schedule. We are confident in our schedule and expect to commence first production at the end of 2016, as initially planned.

Q: What are the operational plans once complete, production figures etc? What does the project mean for the future of Gas in Australia? How much LNG will be exported and where to?

The Ichthys LNG Project will deliver 8.4 million tonnes of LNG per annum and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak. Approximately 70% of the LNG is scheduled to be delivered to Japan, helping deliver Japan’s energy security. The project is also vitally important to Australia (and the Northern Territory), contributing to the country’s position as a top LNG supplier to the global market while making a significant contribution to the Australian economy.

Q: What will the social and economic benefits be for Australia – job opportunities, training, local business growth etc? The Ichthys LNG Project is vitally important to Australia (and the Northern Territory), contributing to the country’s position as a top LNG supplier to the global market while making a significant contribution to the Australian economy. To

date, we have committed more than AU$ 10 billion to Australian companies through a wide variety of contracts. AU$ 5.2 billion of this is for Northern Territory-based companies during construction, and approximately AU$ 50 million has been committed to Aboriginal and Torres Strait Islander businesses, almost exclusively in the Northern Territory. With an operational life of at least 40 years, thousands of jobs, training and business opportunities will be created for generations to come

“The Ichthys LNG Project will deliver 8.4 million tonnes of LNG per annum and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak”

Delivering the Difference in all fields of APAC Sea Trucks Group is pleased to come back to the Australian region for providing Accommodation Support Services to INPEX on their Ichthys project. Over the years the Sea Trucks Group have gained a good reputation for providing quality and well executed Accommodation Support projects in diverse fields and regions of the globe. In 2014 Sea Trucks Group have been breaking new grounds for the group by providing Accommodation Support services in the harsh area North of Sakhalin, Russia. The 2014 campaign in Sakhalin saw the team at Sea Trucks engineer, procure and install additional Accommodation modules onto the deck of the JASCON 34, adding an extra 224 berths to the vessel’s existing capacity, thus totaling 563 berths. Over the past years Sea Trucks Group have been dedicated to working in the APAC region. After the successful SURF installation campaign for BHP on the Pyrenees development in 2009 and the high profile West Atlas Decommissioning program in 2010, JASCON 25 executed a precision lifts campaign for the Origin Energy Yolla Mid Life Enhancement Project in 2012, where the vessel provided accommodation and heavy lift services. The vessel continued being busy executing prime examples of the vessels DP3 hybrid design concept. 2013 saw Sea Trucks Group perform in such diverse fields as Salvage of a vessel in the Philippines, Modular lifts onto FPSO in Malaysia and SURF installation in Brunei. The versatile DP3 vessels of the Sea Trucks Group can accommodate up to 469 POB in accommodation mode (more by installing extra accommodation modules) and can efficiently transfer personnel utilizing their 42,5 m heave compensated telescopic gangway. The vessels have high capacity cranes with heavy lift capability of up to 800 t and 1,800 t and have large unobstructed deck areas of up to 1,500 m2 which can accommodate large topsides modules and subsea equipment. The versatility of the vessels is further demonstrated as the large deck space allows deployment of modular rigid and flexible pipelay equipment for subsea, umbilical, risers and flowlines (SURF) projects for our clients in the Asia Pacific region.

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services in some of the worldâ&#x20AC;&#x2122;s most demanding environments. Our deck equipment solutions include industry-leading mooring systems, anchorhandling equipment and marine cranes backed by certified and warranted repair & refurbishment. Regardless of the complexity of the job, you can rely on Oil States Skagit SMATCO to provide the highest quality solution based on our extensive experience and world-class engineering solutions.

INPEX: Ichthys LNG Project

STG

S e a Tr u c k s G r o u p

Jascon 25 Yolla - Origin | Accommodation & Heavy Lift | Bass Strait, Australia

sea Trucks australia Pty Ltd Level 3, 507 Murray Street | Perth | WA 6000 T +61 8 921 858 88

www.seatrucksgroup.com

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