OIL SEARCH LIMITED Oil Search Update Macquarie Australia Conference 5 May 2010 1
2009 Highlights PNG LNG Project sanctioned on 8 December: Less than two years from FEED to Sanction Transformational impact on Oil Search and PNG ExxonMobil quality operator Foundation for major LNG industry in PNG Seven fold…
Strategic priorities in 2010 and beyond Assist Operator, ExxonMobil, to deliver PNG LNG Project on time and on budget Priority focus on further LNG development, to capture maximum synergy value: Gas exploration and appraisal…
PNG LNG Project Overview Fully contracted to quality Asian customers: Sinopec (China) 2.0 MTPA TEPCO (Japan) 1.8 MTPA Osaka Gas (Japan) 1.5 MTPA CPC (Taiwan) 1.2 MTPA 20 year contracts 6
PNG LNG Project Overview Engineering, Procurement and Construction (EPC) contracts awarded Contracts mix of fixed and variable price Construction underway, first LNG sales targeted for 2014 Investment for initial phase estimated at US15…
2010 PNG LNG Project Activities Continued early works: Roads, bridges, camps, site preparation and training facilities Order remaining long lead items and place purchase orders Open supply routes Mobilisation of people and equipment by…
Proposed PNG LNG Timetable Continued early works Complete AG Detailed design Commence Order long leads and onshore pipe lay First Gas from place purchase orders (Kutubu to Omati) Train 1, Complete offshore then Train 2 Open supply…
Gas Growth 10
PNG Gas Growth Key strategic priority for Oil Search is to grow gas business in PNG LNG remains optimum commercialisation route for additional gas Significant pre-investment - PNG LNG will provide infrastructure and capacity to…
Two-Pronged Gas Growth Strategy PNG LNG dedicated fields: Proven (1P) 301 mmboe (OSH share) all sold Proven & probable (2P) 505 mmboe (OSH share) Focus on moving 2P (& 3P) into 1P contractible category through field development…
Requirements for LNG train growth in PNG PNG LNG Project PPL260 Forelands Pnyang tcf & Korka Gas Resources 25 Offshore Juha North PRL03 Resources Hides Non PNG LNG Gas 3C Exploration Juha PRL02 Angore Resources PDL1…
Oil Search Reserves & Resources Six-fold increase in proven (1P) reserves, from 50 mmboe at end 2008 to 344 mmboe Seven-fold increase in proven & probable (2P) reserves, from 67 mmboe to 567 mmboe PNG LNG Project reserve booking of 505…
PNG Oil Production (gross) 80,000 70,000 Added over 60,000 Oil Production (Bopd) 55 mmstb compared to Chevron 50,000 P10 40,000 P50 30,000 Pre-OSH Decline 20,000 P90 10,000 0 00 01 03 05 06 07…
Oil development drilling continues to add value PNG Oil Fields Gross Ultimate Recoverable Reserves (pre-LNG) 560 540 1P Millions of Barrels 520 2P 500 480 460 440 2003 2004 2005 2006 2007 2008 2009 Since 2003,…
Operational Outlook Gas value driving revised operating framework: Field reliability management Gas conservation with minor oil production impact Value-adding PNG production activities to continue in 2010 & 2011, winding back as first…
MENA 2010 Exploration Summary Le Kef Taj. + Le Kef 600km K42 Shakal 50km Tajerouine Shakal K42 200km Dubai Office Al Meashar (20%) Well Types 20 mmstb Commitment Jebel Milh (17%) Future Commitment 28 mmstb…
Outlook 23
Production Outlook PNG LNG adds 18 mmboe pa to OSH at plateau in 2015 onwards. 30 year Project life T3 could add an additional 9 mmboe pa, with T4 of similar magnitude 90,000 80,000 Net Production (boepd) Potential T3 LNG…
Summary PNG LNG Project construction underway Company and country transformational Active programmes to deliver more value in 2010/2011 Appraisal and exploration to prove up gas for T3/T4 has commenced Core oil production remains…
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