INPEX’S Ichthys Project Update

The centre of management activity for the Ichthys Project is the Perth offices of INPEX. Perth is the hub of a massive global effort to design the Offshore and Onshore facilities for the Ichthys Project, coordinating activity in London, Oslo, Yokohama, Tokyo and Darwin during the FEED phase of the Project.

Approximately 200-250 staff will be working in Perth on the FEED contract across INPEX and its FEED contractors.

The onshore FEED work for the Project is being undertaken by the JKC Joint Venture, comprising JGC Corporation, KBR and Chiyoda Corporation. These companies collectively comprise some of the world’s most experienced and capable LNG plant engineering and design firms. The contract involves the design of the proposed onshore LNG processing facility at Blaydin Point and associated infrastructure.

Offshore FEED work for the Ichthys Project is being undertaken by AMEC Engineering as the lead contractor with support from subcontractors Aker Solutions and JP Kenny.

The Offshore FEED contract involves engineering work for:

• Semi-submersible Central Processing Facility (CPF)
• Floating Production Storage and Offloading (FPSO) unit for condensate treatment and storage
• Umbilicals, risers and flowlines (URF)
• Export pipeline to Darwin

Both Offshore and Onshore FEED are expected to take more than a year to complete.

Once the final Financial Investment Decision (FID) is made, INPEX will move to tender and award specific work packages. It is planned that a single Engineering, Procurement and Construction (EPC) Contractor will be appointed, who will directly manage all subsequent contracting and procurement.

Whilst the offshore facilities will have a single Front End Engineering & Design Contractor, INPEX is expected to appoint multiple Engineering, Procurement and Construction Contractors, with all contracting and procurement directly managed by Inpex. Second tier contracting and procurement shall be managed by the EPC Contractors.

Upcoming on FEED packages include:

• Phase 2 Onshore Geotechnical Investigation
• Phase 2 Nearshore Geotechnical Investigation
• Vegetation Clearing Works
• Project Construction Village Studies
• Module Prequalification
• Offshore Facilities FEED Contract

In readiness, the Project joint venture partners INPEX and Total E&P Australia have recently donated $3 million for the construction of a trade training centre in Darwin.

The Larrakia Trade Training Centre will provide training and facilitate employment opportunities for youth from all sectors of the community including Larrakia, other Aboriginal and Torres Strait Islander peoples and the wider community.

The donation has been made to the Larrakia Development Corporation (LDC), who will develop the training centre in alliance with training provider Advanced Training International.

The centre will include a specialist trades workshop, classrooms and other supporting facilities and will initially provide accredited qualifications in electrical, refrigeration, automotive mechanics, metal fabrication, and plumbing trades.

In addition, the centre will provide a culturally-sensitive learning environment offering literacy and numeracy courses, work-ready skills and transition support, as well as job placement assistance and career counselling. The organisation will also provide links to counselling services for students and youth, and opportunities for further education.

The LDC expects the centre to open in September 2010