Inpex

-5.98%

1. Risk of cost overruns: Delays and cost overruns are common in any large-scale project, and the Ichthys LNG Project does not seem to be an exception. Inpex has already admitted that some costs have already risen as high as 40-50%, meaning that a carefully constructed budget may no longer be adequate.

2. Regulatory and political risks: Inpex will have to navigate a number of different regulatory and political processes during the project, such as the decisions around the exploitation of the gas field, obtaining necessary permits, and satisfying the environmental requirements.

3. Environmental risks: The company will also have to manage the potential environmental risks from underwater drilling, extraction, and shipping of the gas. It must also plan for the disposal of the drilling fluid and pipeline construction waste, and potential leakage of methane.

4. Safety risks: Ensuring the safety of personnel involved in the project appears to be a top priority. A great effort must be made to eliminate human error and protect against mechanical and other possible risks.

5. Market risks: Many variables can potentially affect the demand for LNG and the competitive environment, which can cause unexpected changes to the economic viability of the project. These risks can be considerably reduced through long-term agreements with customers.