Ichthys Lng Securing the Future

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1 Ichthys LNG Project Ichthys LNG onshore facilities plan Ichthys Lng Securing the Future 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 gas processing plant in Darwin will be like a giant refrigeration unit, cooling the gas to its liquid form (liquefied 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 world s first or second ranked LNG exporting country by The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of liquefied petroleum gas (LPG) per annum, along with approximately 100,000 barrels of condensate per day at peak. The Ichthys LNG Project is a world-class project to develop the gas and condensate field discovered by INPEX in the Browse Basin approximately 220 kilometres off the northwest coast of Western Australia. It is being steered forward by the Ichthys Joint Venture of INPEX of Japan and Total of France. This multi-billion dollar project will be ranked among the largest gas processing developments in the world. The Ichthys Field contains resource estimates of more than 12 trillion cubic feet of gas. This is around 13 times the amount of gas Australia uses each year. The Field also contains the largest discovery of hydrocarbon liquid in Australia in 40 years, estimated at more than 500 million barrels of condensate.

2 nd Natural Gas Business The LNG Cycle ness activities of the oil industry can be envisioned as the flow of a river. The consists of the development and production of oil and natural gas. The midstream products are transported. The downstream refers to refining and sales. Our business is to handle operations in the upstream including discovery, drilling, g and selling crude oil and natural gas, which exists underground. As shown in the flow below, business activities in the upstream can be further classified into the on of blocks, exploration, appraisal, development and production and sales. 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 Oil/gas are differences between the properties of liquid and gas, both burn well. The oil and gas generated deep underground have a lighter specific Cap rock gravity than the water and soil in geological layers and therefore rise upward over a period of many years. However, when contacting high-density Reservoir rock Heat/pressure geological layers through which they cannot pass, the oil and gas stop rising Thermoforming of organic matter and form an oil field or a gas field. Depending on the excavation site, crude oil and natural gas exhibit a variety of differences in terms of color (from colorless and transparent to Source rock black), specific gravity, viscosity and amount of impurities. Samples of crude oil and condensate Satellite Offshore drilling rig (platform) Onshore rig LNG tanker LNG receiving terminal Consumer demand Business Overview ss flow (image) Offshore geophysical survey isition of s t extensive information d country risks related to hich oil and natural gas are to exist. We then apply and ning rights and/or exploration opment rights, and entered tract for exploration and ent. with government of cing countries n mainly be divided into concession and production sharing contracts. cts normally contain a commitment exploration work in order to locate ral gas. STEP 2 STEP 3 STEP 4 STEP 5 Exploration Appraisal 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 confirm the presence of oil and gas fields. Geophysical surveys We investigate underground tectonics such as the hardness and concentration of rocks that form the layers of geophysical exploration. Once the presence of oil and natural gas has been confirmed through exploration activities, we drill an appraisal well to assess the extent of the oil and gas fields. We conduct a production test and evaluate the amount of reserves. In addition, we make comprehensive judgments regarding the commercial viability of the fields. For example, we examine profitability and create development plans. Liquefied Natural Gas Liquefied 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. Production test Oil or natural gas is produced in a test to It is increasingly used as a domestic fuel and provides confirm if there is a sufficient amount for commercialization. cleaner energy than that produced by coal fired power stations as it emits less carbon dioxide over its life cycle from production to end use. Liquefied Petroleum Gas 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. Condensate 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. Production and Sales We perform production and operation management such as refining/ 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. Investment for further exploration, purchase of assets, etc. (Expansion of reserves and production volume) Subsurface gas reservoirs contain hydrocarbon fluids at very high pressures and temperatures. When this pressure is released through the drilling of wells, these Refining/treatment of natural gas After separating oil and removing impurities fluids are brought to the surface with the gas through (e.g., carbon gas, hydrogen), we ship natural gas that can be used as a product. production wells. Christmas tree To pipeline High separator pressure Refrigeration unit The fluids then naturally condense into CO ² a liquid called separator Water, sand oil, CO ² Water, oil condensate which is a light oil that can be refined into petroleum products. The Ichthys Project will produce an estimated 100,000 barrels of condensate a day at peak. PORATION Annual Report 2011 INPEX CORPORATION Annual Report LPG, or liquefied 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. 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 (70 80%) would evaporate within the first day of release. 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.

3 Ichthys LNG Project The Ichthys LNG 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 confirmed that the Field had promising resources of natural gas and condensate. In 2006 INPEX transferred a 24% participating interest in the Project to Total, forming a strong joint venture to make the Ichthys Project a reality. INPEX has had a long-standing relationship with Total elsewhere in the world. Total has a wealth of experience and expertise in LNG plant design, construction and operation. In September 2008, Darwin was announced as the preferred onshore location for the Ichthys gas processing plant. 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 barrels of condensate per day at peak. The greater part of the condensate, some barrels per day at peak, will be processed offshore and exported directly from the Field. Biggest liquids find since Bass Strait The Browse Basin contains some of Australia s largest gas and condensate fields 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 Field is relatively shallow, averaging 250 metres. The Ichthys Field contains resource estimates of more than 12 trillion cubic feet of gas. This is around 13 times the amount of gas Australia uses each year. The Field also contains the largest discovery of hydrocarbon liquid in Australia in 40 years, estimated at more than 500 million barrels of condensate.

4 Plan of the offshore facilities at the Ichthys Field Offshore Facilities Central processing facility The Project s central processing facility (CPF) will gather the natural gas and condensate from the field s 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 floating production, storage and offtake vessel (FPSO) for offshore processing. The CPF will be the biggest semi-submersible platform ever built At 110 by 110 metres, the Ichthys CPF will be the biggest semi-submersible platform ever built and the first 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 Australia s tropical north. The subsea production system, which will require approximately 50 wells over the 40 year life of the Field, will be connected to the CPF by a network of flowlines. Massive steel chains will secure the floating CPF to the seabed

5 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 traffic 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 750,000 tonnes of steel, which is the equivalent of 15 Sydney Harbour Bridges or 93 Eiffel Towers. 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 artificial reef just like the existing Bayu Undan pipeline which carries gas from the Bayu Undan Field to the Darwin LNG plant at Wickham Point. The pipeline in Darwin Harbour will become an artificial reef Pipeline Facts 1.5 million tonnes of concrete coated pipeline ( tonnes of steel). Two years to manufacture 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 fourth longest offshore gas pipeline in the world. Floating production, storage and offtake vessel The floating 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 offloaded to shuttle tankers that take the fuel direct to market. Like the CPF, it will have the capacity to accommodate around 150 personnel. The Ichthys FPSO will be built to hold more than one million barrels of condensate

6 Onshore Facilities 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. Shipping LNG ships are large clean tankers, with heavily insulated tanks to keep the LNG cool. The tankers 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. An illustration of a LNG tanker Gas buyers At present, Australia s major LNG customers are Japan, China and South Korea, although India is an emerging market. About 70% of Ichthys LNG will be exported to the Japanese market. Ichthys condensate and LPGs will be sold on the world market. Australia is currently the world s fifth largest LNG exporter. Australia is poised to become the world s first or second leading LNG exporter over the next decade. 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 3000 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 700 permanent positions will be created during the Project s 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. At INPEX our motto 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. Level St Georges Tce Perth WA 6000 Level 8, Mitchell Centre 59 Mitchell Street Darwin NT 0800 Phone: enquiries@inpex.com.au The Ichthys Project is operated by INPEX in joint venture with TOTAL