INPEX resolved to issue new shares and conduct a secondary offering of its shares, as set forth below.
In order to fulfill our social responsibility of contributing to the community and making it more livable and prosperous through realization of a stable and efficient supply of energy, which we have stated as our corporate mission, as well as enhancing our corporate value through the ongoing maintenance and enlargement of our reserves and production in the mid-to-long term, we have drawn up our basic strategies to pursue and challenges we have to address in mid-to-long term as "Mid-to-Long Term Business Challenges," and are presently pursuing these strategies.
As part of the "Mid-to-Long Term Business Challenges," our mid-to-long-term goal is to achieve net production in the range of 800 thousand to 1 million barrels-of-oil-equivalent per day from both existing and new projects by the fiscal year ending March 31, 2020, so as to establish a firm position as a global independent upstream company with global competitiveness.
In order to achieve this goal, we have identified the sustainable expansion of our upstream business, the establishment of a gas supply chain and proactive expansion of the gas business, and the evolvement into a company that offers diversified forms of energy as our basic strategies. As of March 31, 2010, we are involved in a total of 74 upstream projects located in 26 countries around the world, and engaged in supplying energy on a global scale. For the sustainable expansion of our upstream business, it is crucial to make continuous exploration and development investment in order to increase reserves.
Currently, our key priorities are the Ichthys LNG Project in Australia and the Abadi LNG Project in Indonesia, two large-scale LNG (liquefied natural gas) projects where we are acting as operator, and the Kashagan Project in Kazakhstan, which is among the largest discoveries in the history of oil exploration. We have identified these projects as our three major projects for their contribution to our corporate value, and are focusing our efforts into them.
As a result of further development and commencement of full-scale production of our three major projects, we aim to significantly increase our current levels of proved reserves (approximately 1.47 billion barrels-of-oil-equivalent as of March 31, 2010) and net production (approximately 400 thousand barrels-of-oil-equivalent per day for the fiscal year ended March 31, 2010) by the fiscal year ending March 31, 2020. Especially for the Ichthys LNG Project, after commencement of commercial production which is scheduled for the fourth quarter of 2016, approximately 8.4 million metric tons per annum of LNG production, approximately 100 thousand barrels of condensate production per day at its peak, and approximately 1.6 million metric tons per annum of LPG production are expected from this project.
During the period from April 1, 2010 to March 31, 2017, we currently expect aggregate expenditure and investments for new and existing projects of approximately ¥4 trillion, the majority of which will be used for the three major projects.
We intend to use the proceeds from the issuance of new shares in particular to fund the development expenditures of the Ichthys LNG Project, which is expected to account for approximately half of the aggregate expenditures and investments as mentioned above. Specifically, we intend to use the proceeds as investment and funding mainly for INPEX Browse, Ltd., which promotes the Ichthys LNG Project, as well as in connection with our major projects.
The Ichthys LNG Project is expected to require full-scale investment after the final investment decision (FID), scheduled for the fourth quarter of 2011. In addition to the proceeds from the issuance of new shares, we are considering funding our expected development expenditures for the three major projects, including the Ichthys LNG Project, with cash on hand, bank loans and other methods (including project financing at our project companies, debt financing from the Japan Bank for International Cooperation, and syndicate loans from commercial banks combined with guarantees by the Japan Oil, Gas and Metals National Corporation).
We believe that by establishing a stable financial condition in advance through conducting this issuance of new shares, negotiations will proceed smoothly not only with financial institutions acting as debt financing providers, but also with project partners, customers, contractors and other parties, thereby allowing us to promote our future projects at more favorable conditions.
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