Inpex-operated Ichthys LNG project remains above break-even point, despite the drop in oil prices.
According to the company’s president and CEO Toshiaki Kitamura, Inpex has full confidence in the project’s profitability.
He told Reuters in an interview that current oil prices are within the expected range and have not fallen bellow the break-even point.
The project also remains on track for 2016 startup and with 75% of the project awarded on a lump-sum basis, Ichthys LNG project is not running a risk of cost-overruns like some other LNG projects in Australia.
The US$ 34 billion project will produce 8.4 mtpa at the peak of its production. Kitamura added that with Ichthy’s startup Inpex will increase its production to 700,000 barrels of oil equivalent from the current 400,000 boepd.
LNG World News Staff; Image: Inpex