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INPEX
Northern Development Taskforce Site Evaluation Workshop
Broome, Western Australia
24 July 2008
2Ichthys is a Joint Venture between INPEX and Total
Agenda
1. Corporate Overview – who we areIchthys Project JV
2. Ichthys Gas-Condensate FieldOverview
3. Onshore Site EvaluationSite evaluation process and work undertaken
4. Maret Islands The case for Maret IslandsExpandability
3Ichthys is a Joint Venture between INPEX and Total
Energy Demand…. IN PEX INPEX BROVVSE, LTD.
TOTAL
4Ichthys is a Joint Venture between INPEX and Total
Ichthys Joint Venture
The Ichthys project relates to permit WA-285-PA Joint Venture between INPEX & Total INPEX Browse - 76% stake - OperatorTotal E&P Australia - 24% stake - technical supportPropose to develop Ichthys for LNG project2006 – Commonwealth grants Major Project Facilitation StatusLegally obliged to commercialise the Ichthys gas-condensate field (Offshore Petroleum Act)
6Ichthys is a Joint Venture between INPEX and Total
Ichthys Gas - Condensate Field
ICHTHYS FIELD
Discovered March 2000
Two reservoirsBrewster MemberPlover Formation
P50 recoverable reservesGas: 12.8 TcfLiquids: 527 mmbbls
Water depth 90 -240m
Reservoir depth~4000m
470km North of Broome0 100
kilometres
200
KUNUNURRA
BROOME
WYNDHAM
DERBY
WA-285-P
Western Australia
Territory of Ashmoreand Cartier Islands
Joint PetroleumDevelopment Area
Timor Sea
Browse Island
Indonesia
N
Ichthys (WA-285-P)
7Ichthys is a Joint Venture between INPEX and Total
Ichthys Relative to Broome
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9Ichthys is a Joint Venture between INPEX and Total
INPEX Site Evaluation – Phase 1
INPEX site evaluation – Phase 1Conducted in 2002
Initial desktop review of potential sites including offshore, mainland and island locations – identify “show-stoppers”Desktop screening & ranking exercise Site visits (aerial, marine & land investigations)Screening against site evaluation criteria
18 sites evaluated in phase 1:Adele Island*Battery Point/Sampson InletBeagle BayBigge IslandBroome*Browse IslandCape Leveque Cape VoltaireCassini Island
* Eliminated prior to detailed desktop study
Cockatoo IslandDeep Water PointEchuca ShoalsEmeriau Point/Pender BayKoolan IslandLangiiMaret IslandsTroughton Island*Wilson Point*
10Ichthys is a Joint Venture between INPEX and Total
INPEX Site Evaluation – Phase 1 (2002)
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11Ichthys is a Joint Venture between INPEX and Total
INPEX Site Evaluation Criteria
1. Environmental SensitivityDredging requirementMangrovesCoralsMarine Flora & faunaVisual amenity
2. AccessLand area (300ha minimum)Land tenureNative titleAccessibility
3. Physical EnvironmentProximity to deep water Tides & currentsGeneral terrestrial topographyExisting infrastructure
4. Development ConsiderationsProximity to Ichthys FieldHealth & Safety ConstructabilityOperabilityTechnological riskHydrocarbon Risk
5. Commercial & Marketing IssuesAccess to domestic gas marketSynergistic opportunities
Potential sites were evaluated against 5 broad areas:
June 2008 NDT Interim Report confirms process was “appropriate & comprehensive”
12Ichthys is a Joint Venture between INPEX and Total
Risk Management
Health & SafetyEnvironmental Commercial DevelopmentConstruction
Legal MarketScheduleSovereignFinancing
Industry evaluates sites with the goal of minimising as much risk as possible:
LNG project proponents are risk-averse and require certainty before committing to
invest the billions of dollars needed to advance an LNG project.
13Ichthys is a Joint Venture between INPEX and Total
INPEX Site Evaluation Process – Phase 2
INPEX site evaluation - Phase 2 Conducted in 2004
Used 2002 results as basisAcquired satellite & aerial imagery Analysed using advanced geographic information system software
Sites evaluated in phase 2:Cassini IslandChampagny IslandCockatoo IslandKoolan IslandMaret Islands
Shortlist of sites – Cassini Island, Champagny Island, Maret IslandsTechnical analysis Site visitsStrength-Weakness-Opportunity-Threat (SWOT) analysis conducted
Selection of preferred site for further environmental assessmentMaret Islands
14Ichthys is a Joint Venture between INPEX and Total
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16Ichthys is a Joint Venture between INPEX and Total
Environmental Studies
Key Studies to inform the EIA:1. Marine Ecology2. Terrestrial Ecology (flora and fauna)3. Geography and Hydrogeology of the Maret Islands4. Geomorphic Impact Assessment (Maret Island beaches)5. Air Quality Assessment6. Marine Sediment Water Quality7. Cultural Heritage8. Light Impact9. Bulk Tanker Light Reduction Study10. Noise and Vibration Impact11. Cetacean and Other Marine Megafauna12. Oceanographic Discharge Trajectory Modelling13. Socio-Economic Assessment14. Risk Management15. Turtle Population Studies16. Visual Impact Studies17. Subterranean Fauna Studies
17Ichthys is a Joint Venture between INPEX and Total
Environmental Assessment Effort
Maret AO survey effort to date:> 4,100 person-field days
Equivalent to 15 person-years> 8,000 person-logistics days
Equivalent to 30 person-years
Traditional Owners – heritage advisors and survey assistants:> 1200 person-daysEquivalent to 4 ½ person-years
Financial Commitment
2004 – 2008 : >AUD$27Million
Scientific Support> 70 scientists
18Ichthys is a Joint Venture between INPEX and Total
Maret Islands’ Topography
Maret Islands flat topography is well-suited to development
Flat open terrain on Maret Islands:Minimises impact from construction & developmentFacilitates rehabilitation at end of projectGeotechnical conditions suitable – studies confirm
Maret Islands’ topography is perfect for LNG development
No standing fresh waterNo evidence permanently inhabitedNo land mammals or marsupials
19Ichthys is a Joint Venture between INPEX and Total
Maret Islands – Access to deep water
Immediate access to deep water (20+ metres)No dredging required to support LNG tanker shippingProtected water - no breakwater requiredRelatively short jetty –reduces environmental impactTechnical & environmental disciplines aligned30m20m
Access to deep water = no dredging
20Ichthys is a Joint Venture between INPEX and Total
Marets Away From Whale Populations
Detailed research demonstrates that the Maret Islands are a long way from the major whale calving and resting areas along the Kimberley Coast
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21Ichthys is a Joint Venture between INPEX and Total
Maret Islands Vegetation – Not Unique
No DRF
All species present on the Maret Islands have been found on the other islands and mainland surveyed in the region
2 species of priority flora (P4) have been discovered:
Pittosporum molaccanumBrachychiton xanthaphyllus
4 species of potentially significant flora identified – impacts on populations will not be significant
Vine thickets are present and primarily restricted to the island slopes - outside of the development footprint (at least 90% of vine thickets can be retained)
22Ichthys is a Joint Venture between INPEX and Total
Terrestrial Vegetation
Island Species Genera PriorityFlora
Berthier 244 163 1
East Montalivet 166 126 1
West Montalivet 127 104 2
North Maret 186 124 2
South Maret 212 142 1
Floral Diversity
23Ichthys is a Joint Venture between INPEX and Total
Terrestrial Fauna
Surveys conducted on North Maret, South Maret, East Montalivet, Prudhoe, Lamarck, West Montalivet, Walker, Albert & Bigge islands
24Ichthys is a Joint Venture between INPEX and Total
No Declared rare fauna
No terrestrial mammals (3 bat species)
Species present on Maret Islands found on other islands in the region
Short Range Endemics occur including potential new species –largely confined to vine thickets
No Declared rare fauna
No terrestrial mammals (3 bat species)
Species present on Maret Islands found on other islands in the region
Short Range Endemics occur including potential new species –largely confined to vine thickets
Terrestrial Fauna
25Ichthys is a Joint Venture between INPEX and Total
Terrestrial Fauna
Island Reptiles Amphibians Land Birds
Berthier 17 0 23
East Montalivet 17 1 23
North Maret 13 0 24
South Maret 21 0 24
Fauna Diversity
26Ichthys is a Joint Venture between INPEX and Total
Turtle Studies
Aerial surveys
DNA sampling
Satellite tracking
Ground surveys of nesting turtles and hatchling emergence
Sand temperature variability
27Ichthys is a Joint Venture between INPEX and Total
Turtle Nesting
A 2007 aerial survey through most of the West Kimberley has shown:
Low - trace density nesting on nearly all islands supporting suitable beach habitat
Moderate density nesting activity on Albert, Lamarck, and Prudhoe Islands
Highest density nesting activity on Lacepedes, (Browse*, Adele*), Cassini, Maret Islands, East and West Montalivet Islands
28Ichthys is a Joint Venture between INPEX and Total
Turtle Nesting
Genetic studies have shown that green turtles in the Maret Island area are genetically linked to the NWS management unit
NWS female green turtle stock estimate 34,500-162,500
Maret Island represent 3-14% of NWS reproductive effort based on 2006/7 data
Flatbacks are considered part of the Bonaparte management unit, some exchange with the NWS unit
29Ichthys is a Joint Venture between INPEX and Total
Turtle Management
Turtles are present on the Maret Islands and can be appropriately managed
This can be achieved by:– Avoiding heavy disturbance during turtle nesting
– Designing plant for minimum lighting
– Enclosing flare system
– Modifying lighting on offtake vessels
– Restricting tanker operations to daylight hours
– Implementing light management plans
– Restricting vessel speeds
The topography of the islands provides natural shielding for the turtle nesting beaches from onshore infrastructure
30Ichthys is a Joint Venture between INPEX and Total
Marine Habitats
Subtidal marine surveys have been undertaken at a number of locations:
Maret Islands, Albert, Turban, Prudhoe, Berthier, East and West Montalivets, RobroyReef, Lamarck, Champagny, Corvisart.
Detailed coral taxonomy work undertaken on:
Maret Islands,Berthier IslandEast and West Montalivets
31Ichthys is a Joint Venture between INPEX and Total
Coral Habitats – Regional Context
Coral reefs well developed around Islands in Bonaparte Archipelago and generally have high cover
Extensive biogenic reef platforms form on the high energy coasts
Estimated 1,170 Km2 of coral reefs in Kimberley bioregion
32Ichthys is a Joint Venture between INPEX and Total
Coral Habitats - Diversity
Island Species Genera
Maret 225 53
Berthier 191 55
Montalivets 183 55
Marsh, 1992 identified 181 species
INPEX studies have increased this to 280 species making the Kimberley bioregion the most coral diverse area in WA
2 species new to Australia
33Ichthys is a Joint Venture between INPEX and Total
Coral ReefsCoral reefs are present on the Maret Islands (and on many other islands in the Kimberley) and need to be managed
This can be achieved by:– Minimising nearshore infrastructure footprint on corals
– Avoiding / minimising nearshore dredging
– Disposing of spoil at an appropriate location
– Establishing coral protection triggers for and management response
– Maintaining natural hydrodynamics by using open trestle jetties & bridges
– Separating produced formation water offshore
– Treating effluent to minimise contaminants
– Discharging through diffuser at safe location
– Avoiding spills through high integrity design, bunding etc.
– Implementing an oil spill response capability
Coral losses will be restricted to less than 5% consistent with the EPA Guidance document No. 29
34Ichthys is a Joint Venture between INPEX and Total
Kimberley TourismNDT Interim Report identified a number of concerns relating to tourism:
Accommodation availability
Marets independent of Kimberley tourism infrastructure – self-contained
Airline prices to BroomeMarets fly-in/fly-out unlikely to go via Broome – no impact
Labour shortage for tourismIsolated LNG facility not competing directly with tourism for labour
Shipping movementsOfftake tankers do not transit coastal waters
Housing Availability
Marets are self-contained and independent – no real estate impact
36Ichthys is a Joint Venture between INPEX and Total
Maret Islands Relative to Browse Permits Maret Islands ideally situated to capture present & future Browse gas
Central site fundamental to ensuring “competitive neutrality”
When selecting a hub site, important to plan for future exploration success
37Ichthys is a Joint Venture between INPEX and Total
Maret Islands Relative to Browse Permits Southern Kimberley Sites Place Severe Constraints on Development
Inequity in distances from fields is not “competitively neutral”
Selecting a suboptimal site location has the potential to make projects sub-economic or technically unviable
38Ichthys is a Joint Venture between INPEX and Total
Maret Islands LNGMaret Island location preferable to mainland site
“Footprint” is contained– no creep/expansion beyond island boundaries– no new overland infrastructure required– no permanent long-term human presence – no offtake tanker traffic through coastal watersClose to discovered gas fields & central to Browse Basin– ~180 km to Ichthys– ~320 km to nearest known gas viable reserveEnvironmental Management– Away from major whale mating and resting areas– No terrestrial mammals or marsupials on islands– No unique species on islands– Turtle population – can be managed with minimal riskFavourable Topography– Flat terrain reduces need for land disturbance and minimises long-term
impact
39Ichthys is a Joint Venture between INPEX and Total
Maret Islands LNGFavourable bathymetry– Deep water immediately offshore means little to no dredging requiredLand Tenure– Unallocated Crown Land facilitates development– Native Title applies Heritage– No evidence Marets permanently occupied by humans (Heritage) Size– Maret Islands can accommodate > 30 mtpa LNG production using
proven technology– Suitable for single operator multi-user LNG hub development Additionality– Maret Islands could be used to provide 24/7 air & sea rescue support
to region (as well as law enforcement/border patrol)Remote– Maret Islands’ remoteness means all the benefit with few of the hassles
40Ichthys is a Joint Venture between INPEX and Total
Maret Islands as a Hub
INPEX site evaluation based on standalone Ichthys project and extensively investigated
Hub concepts have been modelled, but to a lesser degree
30+ mtpa LNG possible using existing technology
Maret Islands appear viable and attractive as single operator LNG hub location
2007 Max Capacity Study Concludes Marets Suitable for > 30 mtpa LNG
Ichthys proposal for 2 train development can be expanded to accommodate hub
41Ichthys is a Joint Venture between INPEX and Total
Conclusion
LNG developments are highly complex and very difficult to develop – sensitive to risk
The Maret Islands are the best option for an LNG development in the Kimberley
No co-dependant industries opportunity – it’s a clear gas processing Hub only.
All planning for development is respectful of the Environment, Indigenous issues and the Region.
44Ichthys is a Joint Venture between INPEX and Total
Maret Island Hub – Draft Layout
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IN PEX INPEX BROVVSE, LTD.
FOR !PRESENTATION PUIRPOSES ONLY
TOTAL
45Ichthys is a Joint Venture between INPEX and Total
INPEX & Total Activity in Region
We are keen to ensure that hub accommodates future discoveries beyond Ichthys
IN PEX INPEX BROVVSE, LTD.
TOTAL
46Ichthys is a Joint Venture between INPEX and Total
INPEX & Total Activity in Region
We are keen to ensure that hub accommodates future discoveries beyond Ichthys
IN PEX INPEX BROVVSE, LTD.
N
A
TOTAL
47Ichthys is a Joint Venture between INPEX and Total
INPEX – Global Assets
INPEX currently participates in 72 projects in 26 countries
48Ichthys is a Joint Venture between INPEX and Total
Largest Japanese Oil & Gas Company
Engaged in the exploration & production of oil & gas since 1966
Head office in Tokyo with branch offices in Perth, Jakarta, London, Houston and elsewhere
Over 1,700 staff globally (~250 employees in Australia)
Supply gas for about 40% of all Indonesian LNG production exported to Japan
Operator of Ichthys gas-condensate field
Active in Australia (Griffin, Bayu Undan/DLNG, exploration)
Net proved reserves - 1,645 MMboe
Net Probable Reserves - 2,721 MMboe
Participate in Bontang LNG, Bayu Undan/DLNG, Tangguh
INPEX Holdings - Overview
49Ichthys is a Joint Venture between INPEX and Total
World’s 4th largest publicly-traded integrated international oil & gas company
2nd largest capitalisation on the Euronext Paris and the Euro zone
2007 sales: €158.7 billion (A$260 billion)
96,400 employees worldwide
Operations in more than 130 countries
Producer of oil and/or gas in 30 countries
Exploration & production operations in 40+ countries
Has cooperated with INPEX for more than 4 decades
Total Corporation - Overview
50Ichthys is a Joint Venture between INPEX and Total
Total – LNG
Operational
BontangSnohvitOman LNGAdgasQatargasNigeria LNGQalahat
Under construction or planned
Yemen LNG Qatargas IIAngola LNGNLNG T7Brass LNGShtockmanIchthys
Total is a leader in LNG and a partner in the following projects:
LNG accounted for 20% of Total’s upstream capital employed in 2007