Medium-term Business Plan 2018-2022

INPEX Growth Strategy to 2040

  1. *1For VISION 2040


Crude Oil Price (Brent)
A moderate upward trend toward US$70/bbl within the US$50 - 70/bbl range
Exchange Rate
Around ¥110/US$

Cash Allocation

  • Cash allocation for the 5-year period of the Medium-term Business Plan*2 (US$60/bbl and ¥110/US$)
  • Allocate cash flow from operations and others in the following order of priority
    (1) Debt Reduction, (2) Shareholder Returns, (3) Investment for Growth
(1)Debt Reduction
Scheduled repayment of Ichthys project finance loans, etc.
(2)Shareholder Returns
Enhance shareholder returns
(See "Shareholder Returns"for details)
(3)Investment for Growth
  • About ¥1.7 trillion for upstream, global gas value chain and renewable energy
  • About 30% for new projects including exploration
  • Disciplined investment, emphasizing value and volume as well as strategic fit while monitoring oil prices and ramp-up of the Ichthys LNG project
  1. *2Figures are for guidance only and are inclusive of the Company's equity share (62.245%) of Ichthys downstream JV. Subject to adjustment as necessary based on external factors such as crude oil prices, investment opportunities, allocation to shareholder returns, others.

Financial Targets

Net sales
Net income
Cash flow from operations
FY2022 Targets
Around ¥1,300 billion
Around ¥150 billion
Around ¥450 billion
5% or higher
FY2017 Results(Ref.)
¥933.7 billion
¥40.3 billion
¥278.5 billion
  • Financial targets*3 (US$60/bbl and ¥110/US$)
  • Achieve steady growth from stable production at the Ichthys LNG project
  • Net Income Sensitivity in FY2022
    Brent crude oil price; US$1/bbl increase (decrease) : +¥8.0 billion (-¥8.0 billion)
    Exchange rate; ¥1/US$ depreciation (appreciation) : +¥2.0 billion (-¥2.0 billion)
  • Maintain financial strength while expecting an equity ratio of 50% or higher
  • Maintain financial and corporate resilience even if the crude oil prices drop to US$50/bbl
Business Targets (1)

Oil and Natural Gas Upstream

Quantitative Targets

Sustain growth to approach top 10 IOCs

Net production volume
RRR(3-year average)
Production cost per BOE
FY2022 Targets
700 KBOED in FY2022
Maintain 100% or higher during the 5 years
Reduce to US$5/bbl
FY2017 Results(Ref.)

Specific Initiatives


  • Pursue organic growth targeting a solid returns
  • Continue exploration activities in the priority exploration areas
    Note: Priority exploration areas include the northwest shelf of Australia, the Gulf of Mexico and Norway
  • Increase exploration inventory through continuous exploration activities


  • Seek greater operational efficiency and increase reserves and production volume through additional development
  • Increase project value using existing facilities
    e.g. Leverage existing Ichthys infrastructure to commercialize undeveloped gas discoveries, etc.

3.Asset Acquisition/M&A

  • Strategically pursue asset acquisitions and M&A
  • Expand existing core business areas, move into new areas and businesses, generate synergies with existing exploration activities, etc.

4.Core Business Areas

  • Implement measures to expand core business areas


  • Apply experience and expertise as operator to other projects effectively
  • Implement projects in line with corporate strategies
  • Ensure flexibility in adapting to changes in business environment including crude oil price fluctuations
  • Secure opportunities for developing personnel and improving technical capabilities

Key Project Milestones

Ichthys LNG Project

Start production
Quickly achieve and maintain stable operations

Abadi LNG Project

Conduct pre-FEED and FEED works targeting FID at an early stage

Abu Dhabi Offshore and Onshore Oil Fields

Increase production through additional development

Minami-Nagaoka Gas Field

Maintain production as a stable source of natural gas to the domestic market

Kashagan Oil Field

Increase production through additional development

ACG Oil Fields

Promote initiatives for additional development

Eridu Oil Field
(Block 10 in Iraq)

Prepare for development

Prelude FLNG Project

Start production
Quickly achieve and maintain stable operations

Business Targets(2)

Global Gas Value Chain

Achieve top-level LNG entitlement in Asia and Oceania

Domestic (Japan)
Achieve annual natural gas supply volume of 2.5 Bm3
Continue marketing activities to further increase annual natural gas supply volume to 3 Bm3
LNG/Gas marketing for FID on Abadi LNG project
Create natural gas demand in Asia and other growing markets
Establish a flexible supply system by effectively deploying LNG fleet and strengthening capabilities to adapt to changing markets
Business Targets(3)

Renewable Energy

Develop renewable energy to comprise 10% of the project portfolio as targeted in VISION 2040

Promote geothermal power generation business
Pursue synergies with oil and gas E&P activities
Domestic : FID on ongoing projects in Oyasu (Akita Pref.) and Amemasudake (Hokkaido Pref.)
Overseas : Stable operation of Phase 1 at Sarulla Geothermal IPP Project in Indonesia Pursue new business opportunities
Proactively enter wind power generation business
Steadily conduct and expand the domestic onshore wind power business,with a view toward pursuing offshore wind power business opportunities
Enhance R&D of renewable energy technologies
Develop technologies for an electricity-hydrogen-methane value chain

Shareholder Returns

  • In FY2018, plan to issue a commemorative dividend following the Ichthys LNG Project's start-up and shipment of cargo
  • Shareholder return policy during FY2018-2022

Maintain base dividends not falling below ¥18 per share plus the commemorative dividend as above
Enhance annual dividends in stages by increasing the dividend per share in accordance with the growth of the Company's financial results

Payout ratio: 30% or higher