OIL SEARCH LIMITED Macquarie Conference Sydney, May 2006 1
Oil Search - Profile Established in PNG in 1929 Operates all of PNGs producing oil and gas fields In 2005, generated approx 22% of PNGs export revenue and 10% of its GDP. Largest investor and taxpayer Has major interest in…
Oil Search Where We Operate 3
Oil Search in PNG 6 producing oil fields (Kutubu, Moran, NW Moran, Gobe Main, SE Gobe & SE Mananda) 1 producing gas field (Hides) Major gas development opportunities Extensive exploration 4 acreage
Oil Search in Yemen 1 producing oil field (Nabrajah, Block 43) Nabrajah Basement development 6 concession areas (5 as Operator) 5
Oil Search in Egypt East Ras Qattara Area A - comprises 2 development leases (5 small oil fields) and four exploration leases Umm El Yusr Area A Exploration Kareem, Yusr, Kheir & Shukheir Development Also: Wadi Dara…
Core Expertise Developing country specialist Ability to work co-operatively with host governments and local communities Culturally sensitive and diverse Experienced in operating in challenging environments Low cost, innovative,…
Achievements - Production Growth 40,000 Kutubu Moran Gobe Main SE Gobe +17% Pre AGL Hides Nabrajah SEM 35,000 +10% -8% Post +6% AGL 30,000 +25% sale 25,000 +23% stb/d 20,000 15,000 10,000 5,000 0 2000 2001 2002…
Achievements Growth in Net Profit After Tax 240 20 17.9 220 Net Profit 18 200 EPS 16 180 14 160 200.2 140 12 US cents USm 9.6 120 10 100 7.7 2H 8 80 136.3 4.5 6 60 107.3 85.7 1H 4 40 1.8 47.0 63.9 20 2…
Achievements - Top Quartile Total Shareholder Returns 4th out of % 120 ASX 150 5th out of 100 ASX 150 8th out of 80 ASX 150 107% 60 81% 40 67% 20 0 2003 2004 2005 10
How Do We Maintain Growth Deliver value: Continue to optimise performance of PNG oil fields, with tight control over costs Extract value: commercialise our very significant PNG gas resources, through a variety of projects Create…
DELIVER VALUE 12
PNG Oil Production Outlook 80,000 STB/D Summary PNG Gross Production History 2000-2005 Programmes post- and Forecast 2006 operatorship change 70,000 have been successful Current gross PNG 60,000 production At 2001 levels…
PNG Oil Production Oil Production (stb/d) Oil Production (stb/d) 50,000 35,000 History Forecast History Forecast 45,000 KUTUBU 30,000 40,000 GOBE 25,000 35,000 30,000 20,000 25,000 15,000 20,000 15,000 10,000 Trend…
SE Mananda Development First Oil on 26 March with production currently on ramp up to 7,000 bopd Significantly more complex geology and reservoirs NW Moran intersected, leading to reduced SE Mananda oil in place, lower reserves…
SE Mananda Bridge 17
SE Mananda Bridge 18
EXTRACT VALUE 19
Gas Commercialisation Significant change in global gas markets over past few years Australia an anomaly in the developed world World prices continue to climb Considerable new interest in PNGs static gas resources Focus to turn…
Gas Commercialisation Oil Search has over 1 billion boe of proven and probable uncontracted gas and associated liquids Resource is of considerable potential value, approximately 40% of resource dedicated to PNG Gas Project…
Gas Resource Status (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…
Gas Commercialisation Phase 1 : PNG Gas Project Delivery Significant progress, with markets largely underwritten Likely to be close to or at initial build plant capacity Commercialises significant volume of reserves Delivers…
PNG Gas Project Sale of gas from PNG Highlands to Australia through over 4,000 km of pipeline Conditional & firm contracts signed for total gas sales of 155- 229 PJ pa Major buyers: AGL, Alcan, Comalco, QAL, CS Energy…
PNG Gas Project Focus on Delivery Substantial activities in PNG to finalise regulatory and landowner agreements Oil Project commitments and agreements being finalised Developing environment for Landowner Benefits distribution…
Requirements for a Project Sanction decision Conversion of remaining indicative terms agreements into gas sales agreements Finalisation of local business development plan (NECL) and benefits distribution (GPCSA) Conclusion of…
Gas Commercialisation Phase 2 : Gas for PNG Industry Development and Further Exports New initiative recognising world market realities Significant interest for petrochemicals, GtL, fertiliser and new LNG developments Requires…
Phase 2 Gas Strategy Targeting 2010-12 In-Country Industry Development Requires more contractable reserves Strong interest from industry developers Petrochemical GtL Fertiliser LNG CNG local and export use Expanded exploration,…
Phase 2 Gas Strategy Aiming for 150 PJ pa initial market load in Port Moresby, growing to over 300 PJ pa Flexible gas supply options but to include potential development of Juha Barikewa Kimu Uramu Subject to further appraisal…
Phase 2 Gas Strategy Programme designed to target 4 to 8 tcf of contractable gas over 3 years Expanded exploration and appraisal drilling programme FEED on pipeline from Kopi to Port Moresby Potentially 3 new field developments…
Current Oil Production and PNG Gas Project 32
Current Oil Production and PNG Gas Project Including Phase 2 Gas 33
New Appraisal and Development Programme Dedicated exploration / drilling resources Juha drilling programme 06-07 Barikewa seismic acquisition then appraisal drilling Kimu / Korobesea seismic then drilling Engineering and FEED…
Juha Engineering feasibility study on Juha gas and liquids cycling plant completed Juha 3 Juha 2 Juha 1 Juha cycling looks attractive, particularly in high oil price environment Planning to drill two Juha wells, with activity…
CREATE VALUE 36
2006 PNG Exploration PNG up to 5 Mananda Attic exploration wells Juha planned for 2006 Mix of low risk/near NW Paua field opportunities Arakubi and higher Damami risk/large potential River seismic wells (Mogulu) Foldbelt…
Yemen 2006 Appraisal/Exploration Complete appraisal programme on Nabrajah: Nab-10 underway, Nab- 11 to follow Complete acquisition/processing of Block 43 seismic NABRAJAH Up to six exploration wells planned 06/early 07 2 Block…
Egypt & Libya Egypt - East Ras Qattara 3D has substantially increased block potential 2 wells commencing 3Q06 Two Wells Egypt - Area A 15 well/3 years committed development /exploration programme Exploration commences early…
Summary Production outlook remains unchanged: 2006 production forecast at 11.0 11.5 mmboe, +10% in 2007 Gas priority is to deliver PNG Gas Project and progress next phase of gas developments Exploration PNG range of low risk/near…
Loading...
