Project History

Approval of Revised Development Plan and Participation of New Partners

This is one of the largest projects in Asia, and INPEX is participating as the operator. Once launched, this project will enable the stable supply of energy over the long term in the Asian region. Specifically, by liquefying natural gas from the Abadi Gas Field at an onshore LNG facility, the project is expected to produce approximately 9.5 million tons of LNG per year, up to 35,000 barrels of condensate per day and approximately 150 million cubic feet of natural gas per day.
The above-mentioned development plan was approved by the Indonesian government in 2019, but aspiring to make the project cleaner from the perspectives of ensuring long-term competitiveness and improving sustainability, we decided to introduce CCS and submitted a revised development plan to the Indonesian government in April 2023, which was approved in December 2023. Additionally, Indonesia’s Pertamina and Malaysia’s PETRONAS joined the project as new partners in October 2023. Both partners are companies with extensive experience in oil and gas development in Indonesia and LNG projects globally.

Responding to Natural Gas Demand in Asia

We will continue to carry out the necessary development preparations, including front-end engineering design (FEED), obtaining environmental permits, project site acquisition, marketing and project financing, in close collaboration and cooperation with our partners, Pertamina and Petronas.

Achievement of both cleaner energy and cost competitiveness

Realizing a net zero carbon society is an urgent challenge. In this project, we plan to neutralize the CO₂ emitted from natural gas production at the Abadi Gas Field through the intro-duction of CCS. This project is the first in which CCS costs are eligible for recovery based on the production sharing contract (PSC) framework governing upstream oil and natural gas projects in Indonesia.

1. Note: Cost recovery in production sharing contracts:
   Production sharing contracts are agreements by which an oil and natural gas development company serves as a contractor that undertakes at their own expense exploration and development work on behalf of the governments of oil-producing countries and receive hydrocarbons produced from the projects as cost recovery and compensation. That is to say, when exploration and development work results in the production of oil or natural gas, the contractor recovers the exploration and development costs it incurred by means of a share in the crude oil or natural gas produced. The remaining portion is shared between the oil-producing country and the contractor according to a fixed allocation ratios.
   These production sharing contracts are used in the development and production of oil and natural gas in Indonesia, but government approval is required when determining the extent of allowable cost recovery, and a greater extent of cost recovery leads to improved cash flow and project economics for the contractor.

Improvement of energy security in Asian countries

Demand for natural gas as one of the main sources of energy in the energy transition period is expected to remain robust in Asian countries. Taking advantage of the superb location of this large-scale LNG project, which is one of the few in the Asia Pacific region, we plan to widely market its LNG to buyers in Indonesia, where demand is expected to grow, as well as to traditional LNG buyers in East Asia and emerging buyers in Southeast Asia, South Asia and elsewhere.

MI Berau B.V., jointly established by INPEX and Mitsubishi Corporation, acquired an interest in the Berau Block in October 2001. In October 2007, MI Berau Japan Ltd., also a joint venture with Mitsubishi Corporation, acquired a stake in KG Berau Petroleum Ltd., effectively increasing INPEX’s interest in the Tangguh LNG Project to around 7.79%. In March 2005, Indonesian authorities approved an extension of the PSC and project development plans for the Tangguh LNG Project until 2035. Following development work, the first shipments of LNG began in July 2009. The FID to expand the Tangguh LNG Project was made in July 2016. In December 2022, the project obtained government approval for the 20-year extension of its production sharing contract until 2055. Currently, the project produces about 11.4 million tons of LNG per year via three gas liquefaction trains. Additionally, in November 2024 the parties reached a final investment decision on the Tangguh UCC Project, an expansion project incorporating CCUS based on a development plan approved by SKK Migas in 2021.

1. **Production on the basis of all fields

In 2004, INPEX acquired Blocks 05-1b and 05-1c, located 350 kilometers southeast of Ho Chi Minh City, Vietnam. In 2010, an exploration well was drilled in the Dai Nguyet (DN) structure leading to the discovery of gas and condensate accumulations. In 2014, another exploration well was drilled in the Sao Vang (SV) structure, which also led to the discovery of gas and condensate accumulations. In 2017, a development plan for the SV/DN gas field was approved by the Vietnamese government, and production commenced at the Sao Vang Gas Field in 2020, followed by the Dai Nguyet Gas Field in 2022.

INPEX has joined four geothermal power projects (Muara Laboh, Rantau Dedap, Sarulla and Rajabasa) located on Sumatra Island, Indonesia. Among these, the Muara Laboh Geothermal Power Project, Rantau Dedap Geothermal Power Project and Sarulla Geothermal Power Project are in commercial operation. Combined, these three projects provide a power generation capacity of approximately 513 megawatts, an output equivalent to what is consumed annually by the approximately 2.9 million households in Sumatra. Electricity generated by the plants using geothermal resources is planned to be marketed to the Indonesian national power company over the period of about 30 years from the start of commercial operation. For the Rajabasa Geothermal Power Project, which is still in the exploration stage, surface and geophysical surveys have indicated a certain potential for geothermal resources. If sufficient geothermal resources are located through exploration activities to warrant the development of the project, this is expected to contribute to the further expansion of INPEX’s geothermal business in Indonesia. We will strive to expand our geothermal business in Indonesia through new exploration and other activities.