Inpex Holdings Inc., Japan's biggest oil explorer, may spend 1.24 trillion yen ($11.5 billion) in the three years through March 2011 on developing oil fields, liquefied natural gas projects and making acquisitions.

Tokyo-based Inpex plans to boost production to the equivalent of 700,000 barrels of oil a day between 2015 and 2020 after starting LNG projects in Indonesia and Australia, and an oil field in Kazakhstan, said Chief Operating Officer Katsujiro Kida. Daily output is currently at 423,000 barrels of oil equivalent, Kida said today.

``We can expect stable profitability from our projects in Australia and Indonesia,'' Kida told investors at the Nomura Asia Equity Forum in Singapore. ``Ichthys and Abadi will be the main drivers to enhance corporate value.'' The company may approve this year an LNG import terminal in Naoetsu, Niigata.

Japan, the world's biggest user of the fuel, boosted LNG imports by 7.6 percent to a record last year after shutdowns at nuclear plants. Delays at the Gorgon LNG project, which will tap gas off the coast of Western Australia, falling output in Indonesia, and rising demand in China and India have reduced supplies in Asia and drove prices higher.

Inpex is seeking growth through mergers and acquisitions by purchasing companies in the oil and gas business or individual oil assets, Shuhei Miyamoto, a company spokesman, said in an interview in Singapore today. He declined to elaborate on the planned purchases.

Diversifying Portfolio

``We think our asset portfolio must be diversified,'' Miyamoto said. ``For the moment we cannot make very big acquisitions.'' The company has a ``net cash'' position, he said.

Shares of Inpex dropped 2.36 percent today in Tokyo to close at 1,240,000 yen.

Projects in Australia, Indonesia and Kazakhstan will drive the company's earnings and growth, Kida said. Inpex has delayed a final investment decision on Ichthys LNG project off Australia's northwestern coast by a year to 2009 for a targeted 2014 startup.

``We will decide the site for the LNG project this summer and then do the FEED,'' Kida said. ``Total and the Northern territory government must settle some issues before we decide the site.'' Inpex will decide between Darwin in the Northern Territory and Maret Islands in Western Australia to build an 8 million-ton-a-year LNG plant.

Rising Reserves

Inpex completed a fourth appraisal well two days ago at Abadi in Indonesia and found adequate reserves to underpin a 3.5 to 5 million-ton-a-year LNG plant, Kida said.

``We expect a further increase in reserves,'' Kida said. The company plans to approve the project by 2011 for a targeted 2016 production start-date, Kida said.

Inpex doubled its reserves estimate for the Masela gas field in Timor Sea to more than 10 trillion cubic feet, Indonesia's oil and gas regulator said in May.

``Natural gas demand in Japan is rising because of high oil prices,'' Kida said. ``The LNG supply demand will remain tight in the future.''