Gas Commercialisation Overview Significant resource base discovered in PNG, with material further potential Appraisal of existing discoveries Exploration potential Proven and probable discovered resource 14TCF Oil Search share…
Gas Commercialisation Overview Resource commercialisation under active review PNG Pipeline Project Petrochemical Developments LNG (multi phase) Cycling Projects Focus on optimising value of oil and gas integrated business and…
Gas Commercialisation Overview Significant changes in markets over past 3 years Unprecedented interest in ownership and participation Strengthening of world gas pricing following oil price appreciation Growing disconnect in…
Gas Resources (Gross PNG) Recoverable Gas (bcf) Elevala 30,000 Ketu Pandora Recoverable Gas (bcf) 25,000 Uramu Kimu Barikewa 20,000 P'nyang Yet to Find Angore 15,000 Juha Hides 10,000 SE Gobe Gobe Main 5,000…
Juha Angore Pnyang Honinabi Major Oil and Gas Fields with Mogulu North Mogulu South Exploration Iehi Kimu Uramu Barikewa Pandora 98
Gas Commercialisation Maximum Value to Oil Search Staged growth of gas business Optimises usage and value of resource (gas and oil) Leverages oil infrastructure Staged development PNG Gas Project : Utilising Kutubu and Hides…
PNG Gas Commercialisation 1st Phase Development 80.0 70.0 Production Net to OSH 60.0 (000 boed) 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP Liquids PNGGP Gas…
PNG Gas Commercialisation 2nd Phase Development 100.0 90.0 Production Net to OSH 80.0 70.0 (000 boed) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP…
PNG Gas Commercialisation 3rd Phase Development Significant production increase over 4 years 120.0 Production Net to OSH 100.0 (000 boed) 80.0 60.0 40.0 20.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil…
PNG Gas Commercialisation Excluding PNG Gas Project Able to double production through petrochemical developments 80.0 70.0 Production Net to OSH 60.0 (000 boed) 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018…
Gas Commercialisation Overview Intense Commercial review being undertaken to further mature development options Carried out involving total value approach Reserve commitment and schedule alignment important Exploration and…
PNG Pipeline Project 105
PNG Pipeline Project Overview Project remains fundamentally sound: Major Issues: - Australian pipeline ownership - Confirmation of final market loads - Capex of new configuration Revised configuration being studied: Phased…
PNG Gas Project Overview Strong customer interest, especially given recent price indications Strong interest from various potential pipeline owners/builders Work to Year End: Formal submissions/due diligence for new pipeline…
PNG Gas Project Possible Pipeline Configurations 108
Revised Pipeline Scenario Hides Kutubu Gobe PAPUA Revised pipeline route miximises use of existing Kopi NEW GUINEA infrastructure Long term alignment with existing asset holders Port Torres Strait Moresby Strong Interest from…
Australian Pipeline Maximise use of existing infrastructure Leverage on sunk capital Secure loads for asset owners Opportunity to stage Isa lateral Isa gas contracts expire 2012 2014 Manage impact with Ballera/Moomba offtakers…
Petrochemicals Methanol/DME and Ammonia/Urea 111
Status Opportunity for major in country gas use for value-adding export plants World scale methanol and ammonia/urea plants Plant proponents with successful track record Planning to co-locate plants near Port Moresby and coordinate…
Petrochemical Supply and Infrastructure Cornerstone developments require pipeline infrastructure to Port Moresby, and the infrastructure build is common for other potential gas uses if appropriately sized Oil Search work forms the…
Methanol/DME Project Status Indicative Terms Agreement (ITA) Executed Principle commercial terms & conditions facilitating project development Conditional GSA negotiations to commence in near future & complete early 2007 Needs…
Methanol/DME Proponents Mitsubishi Gas Chemical (MGC) One of the Largest Methanol Suppliers / Marketers in the world Over 15% of global production capacity with additional trains in the planning process Total Assets USD 4.6 Bn…
Methanol Price Outlook 450 Spot Methanol Prices in Asia (CIF Main Ports) Positive 400 outlook on Ammonia and US per Metric Ton Urea prices 350 300 Gas Prices 250 linked to 200 product prices 150 to capture the…
Ammonia/Urea Project Current Status MOU executed with Oswal Group Incorporates general commercial terms Progressing more detailed documentation Oswal progressing critical path activities Front End Loading (FEL) study commenced by…
PNG Ammonia/Urea Plant World Scale: 2600 tpd (900,000 tpa) Ammonia/4500 tpd (1.6million tpa) Urea Oswals Burrup ammonia plant 2200 tpd Power generation and water desalination for the Plant and for Port Moresby Plant needs 35 Mw…
Ammonia/Urea Plant Proponents Oswal Projects, part of Indias Oswal Group. Done three fertilizer plants before Approx USD 4 Bn group Burrup in Western Australia Successfully commissioned this year, first shipment loaded in June.…
Urea Overview A Globally traded commodity Priced at various hubs 30% of the trade in spot balance firm and long term, priced by reference to spot China and India 50% of the worlds urea demand, US next CIS and Middle East 50% of…
Ammonia/Urea prices 350 Positive Historical Ammonia & Urea Prices (FOB Middle East) 300 outlook on Methanol 250 prices US per MT 200 Gas Prices 150 linked to product prices 100 to capture the Ammonia upside 50 Urea…
Oswals Burrup Fertilizer Plant 122
LNG Development Options Strong market conditions for supply into Asia and North America ExxonMobil reviewing LNG potential Oil search recently signed an MOU with BG to explore LNG options: Focus on areas away from Hides / Kutubu…
BG-Oil Search Alliance Goal to align corporate cultures and drivers to deliver an LNG project to PNG Focus is on gas outside PNG Gas Project licences Credible LNG partner with a good cultural and operating fit with Oil Search…
From FACTS presentation mtpa LNG Demand in the Asia Pacific Region: 2000-2015 180 160 140 120 100 80 60 40 20 0 2000 2004 2005 2006 2010 2015 South Korea Japan Taiwan India China Other New Markets* Commited supply…
LNG Market LNG market is short of supply 2010-2014. Potential to extend with project delays (Gorgon etc) Indonesian and other supply concerns Asian markets likely to feature in any LNG planning. Japan, Korea, Taiwan & China…
LNG Plant Typical Schedule Task Name Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Feasibility Studies Definition Phase Bid and Award FEED FEED EPC Bid Evaluation EPC Award EPC Contract First LNG Shipment Plant…
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