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Total Announces Sell-Off of 4% Stake in Ichthys LNG Project
= Decides to sell to INPEX on the background of cost increase =
France's Total on 13th announced it has agreed with Japan's INPEX to sell off 4% share in the Australia-based Ichthys LNG project. As the project cost has become higher than the initial estimate due to construction delays, Total decided to lower, optimize the share rate aimed at reducing risks.

The sell-off price is estimated at about US$1.6 billion. The deal is finalized after Australia's related authorities approve it. After completion, Total's share will drop to 26% from 30%, while INPEX will raise its share from 62.245% to 66.245%.

At the time when a final investment decision (FID) was made in January 2012, the INPEX-led Ichthys project was estimated to cost about US$34 billion, and production start-up had been set in December 2016. Total had acquired an additional 6% share in the project from INPEX in July 2012.

However, the first LNG shipment was actually done in October 2018, below two years later than the initial plan because of natural disasters such as cyclone etc. Reflecting increase in construction cost, INPEX in 2017 revised up the total investment amount to about US$40 billion, and after that, due to further project delays, the cost has been expanded to about US$45 billion.

Other than two companies, the Ichthys project is invested by five Japanese companies Tokyo Gas (1.575%), Osaka Gas (1.2%), Kansai Electric Power Company (1.2%), JERA (0.735%), Toho Gas (0.42%), and Taiwan's CPC (2.625%).
last modified : Tue 25 Dec, 2018 [10:36]
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