Inpex says profit forecast remains achievable

* Inpex says FY09 profit forecast of 177 bln yen achievable

* Expects FY09 production to be fairly flat

* Ichthys project remains economically viable

PERTH, Oct 15 - Inpex Holdings Inc <1605.T>, Japan's biggest oil and gas explorer, said it was on track to meet its full-year profit forecast of 177 billion yen ($1.74 billion) despite falling oil prices predicted fairly flat production growth next year.

Inpex, which has proposed to build a liquefied natural gas (LNG) plant in Australia's northern city of Darwin estimated at more than $20 billion, said the project remains economically viable despite the global financial crisis and that the firm was determined to move ahead on the massive gas project.

Katsujiro Kida, director and executive vice-chairman of Inpex told Reuters in an interview late on Tuesday that the firm's profit guidance of 177 billion yen for the 2008/2009 year, issued in August, was based on oil price assumptions of about $95 a barrel.

"The target is achievable unless there are drastic changes in oil prices and exchange rates," Kida said.

Oil prices have skidded to around $78 now from a record high of over $140 in July on worries that a global economic slowdown will slash demand.

Kida did not specify the exchange rate assumptions used for its guidance in August, when Inpex raise its profit outlook by about 48 percent, but he said that a weaker yen <JPY=> would help boost the firm's earnings.

Kida also said Inpex's production was expected to be relatively flat in fiscal 2009, with new gas output from the BP Plc-led <BP.L> Tangguh LNG development and Apache's Van Gogh oil field in Australia offset by disruptions in the BP-led Baku-Tbilisi-Ceyhan oil pipeline last month.

The firm's total production in fiscal 2008 was 423 million barrels of oil equivalent (boe).

COMMITTED TO DEVELOP ICHTHYS

Inpex last month more than doubled its cost estimate of building the Ichthys LNG plant in Australia to more than $20 billion.

The recent fall in energy prices and high borrowing costs have sparked speculations that some oil and gas firms may be forced to delay multi-billion dollar LNG projects on financing concerns, a move which could worsen forecast LNG supply tightness in the next decade.

But Kida said the Ichthys project, in which France's Total SA <TOTF.PA> has a 24 percent stake, remained economically viable and Inpex is "determined to focus its resources" on the development.

Asked if Inpex was on a lookout for potential acquisition opportunities emerging from the current financial turmoil, Kida said: "No. We would like to concentrate on the Ichthys project."

Kida said financing for the Ichthys LNG project, which is targetted to reach a final investment decision in late 2009 or early 2010, is expected to come from its internal cash flow and borrowings.

The Ichthys LNG plant, to be built in Australia's northern city of Darwin, is expected to produce more than 8 million tonnes of LNG a year, equivalent to more than a tenth of Japan's imports. The plant will also produce about 1.6 million tonnes of liquefied petroleum gas and up to 100,000 barrels a day of condensate. ($1=101.67 Yen)