Inpex Completes the Transfer of Interest in the Masela Block, the Arafura Sea, Indonesia

INPEX CORPORATION (INPEX) announced today that its affiliate, INPEX Masela, Ltd. (INPEX Masela) and PT EMP Energi Indonesia (EMPI), a subsidiary of PT Energi Mega Persada Tbk. (EMP), which is a leading Indonesian upstream oil and gas company, have completed the necessary procedures for the transfer of a 10% participating interest in the Masela Block in the Arafura Sea, Indonesia, where INPEX Masela is the operator for the Abadi gas field and LNG development project.

A joint operating agreement between INPEX Masela and EMPI for the Masela Block has now become effective.

As a result of the transfer, EMPI holds a 10% of the participating interest in the Block, while INPEX Masela retains a 90% interest. The project will proceed to the FEED (Front End Engineering and Design) in due course.

INPEX continues to seek support from the Indonesian Government and other stakeholders for an early commercial production of the Abadi project.

A gas field and LNG development project for the Abadi gas field located in the Masela Block in the Arafura Sea in the eastern part of Indonesia. The entire area of the Block is 3,221 km

About the Abadi Project:

INPEX Masela has explored the Block as the operator, and the field was discovered at the exploratory well Abadi-1 drilled in 2000. Subsequently, appraisal works were conducted, including the drilling of the six appraisal wells, and confirmed the sufficient volumes of gas reserves for an LNG development project. The Floating LNG method will be adopted as approved and supported by the Indonesian Government. and the water depth 300 to 1,000 m.

About EMP:

INPEX is committed to developing two large scale LNG projects: the Abadi project and the Ichthys project offshore Western Australia. From these two LNG projects, INPEX will produce LNG, the volume of which is equivalent to around 20% of Japan’s current LNG annual import volume. These two projects will greatly contribute to a stable and efficient supply of energy to Japan.

About INPEX:

INPEX has been expanding its exploration and development activities in Indonesia as one of its international core business areas. INPEX is conducting production activity in the Offshore Mahakam Block with the largest gas production in Indonesia. INPEX will proceed with the Abadi project which will further expand its exploration, development and production activities in Indonesia.

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Source:Inpex , November 25, 2010;