Inpex mulls sale of Ichthys LNG development stake

Inpex, the Japanese operator of the proposed Ichthys LNG development, is considering the sale of some of its stake in the project.

Aug. 16, 2010

2 min read

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Aug. 16 -- Inpex, the Japanese operator of the proposed Ichthys LNG development, is considering the sale of some of its stake in the project.

Discussions have been held with a number of potential entrants to the consortium, but no agreement has been reached yet. Inpex has not released the percentage interest that might be sold.

At this stage Inpex holds a 76% interest and the operatorship. France’s Total SA holds the remaining 24%.

Inpex says, however, that a preliminary agreement is likely to be signed before the company makes a final investment decision on the project timed for fourth-quarter 2011.

In July this year Inpex announced a $46.7 billion (Aus.) global share offering aimed primarily at financing the $22 billion (Aus.) Ichthys project.

The development proposal includes a floating processing platform at the field in the Browse basin off Western Australia to strip out 100,000 b/d of condensate from the gas stream before sending the dry gas via an 850-km subsea pipeline to a two-train, 8.4 million tonne/year LNG facility at Blaydin Point near Darwin in the Northern Territory. This plant will also produce 1.6 million tpy of LPG.

The project is expected on stream in 2016.