Oil Search - Profile Established in PNG in 1929 Operates all of PNGs producing oil and gas fields and in 2004 generated 24% of PNGs export revenue and 14% of its GDP Has major interest in substantial undeveloped PNG gas resource Growing…
Asset Portfolio PNG 4 producing oil fields (Kutubu, Moran, Gobe Main & SE Gobe) 1 producing gas field (Hides) NW Moran and SE Mananda oil fields under development Extensive exploration acreage Yemen Nabrajah oil field under…
PNG Licence Map Oil Search now owns over 70% of oil reserves and over 50% of discovered gas
PNG Licence Map Oil Search is the largest investor in PNG responsible for over 20% of export revenues and 14% of GDP
PNG Licence Map Oil Reserves 170mmbbls - OSH 70% - EM 18% - MRDC 3% Gas Reserves 12 TCF - OSH 54% - EM 30% - MRDC 3% (PNG Govnt Back in to Hides)
Areas of Operational Expertise Developing country specialist Ability to work co-operatively with host governments and local communities Culturally sensitive Experienced in operating in challenging environments Low cost, flexible and…
Recent Corporate History 2002 merged with Orogen Minerals, which increased Oil Searchs interest in PNGs oil fields from approx 20% to 50% 2003 ChevronTexaco (CT) resigned operatorship of PNG oil fields and Oil Search elected to take…
Three-pronged Growth Strategy Optimise operating performance of the PNG oil fields Commercialise the substantial PNG gas resources Build up a production and exploration portfolio in Middle East/North Africa
Coming from a position of strength. USm US cents Rising production 160 Net Profit 16 and profitability 140 EPS 150.5 14 13.5 120 12 100 10 80 7.7 8 Strong cashflow and 60 40 5.0 4.5 85.7 6 4 ungeared balance 20…
Share Price Comparison 3.5 3.0 OSH ELECTED GAS OPERATOR OF PROJECT 2.5 ASSUMPTION OF OPERATORSHIP PNG OIL FIELDS FEED & ACQUISITION OF CT ASSETS CPS 2.0 CONVERSION Index STRATEGIC 1.5 REVIEW COMPLETED 1.0 0.5…
PNG Oil Field Optimisation Despite largely mature asset base, over the past two years, Oil Search has: Added 10,000 bopd to Kutubu, 5,000 to 8,000 bopd to Moran and over 3,000 bopd to Gobe fields production levels through new…
Kutubu Improvement Reservoir History Plot - Kutubu including Agogo 50,000 Before Oil Search After 45,000 40,000 35,000 30,000 Rate (bopd) 25,000 20,000 Oil Search has added 15,000 10,000 bopd to Kutubu…
Average Monthly Oil Rate (stbopd) Ja 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 0 n- Ap 9 9 r- 9 Ju 9 l- O 99 ct - J a 99 n- Ap 0 0 r- 0 Ju 0 l- Saunders Kutubu SE…
SE Mananda Development Moran SE Mananda Agogo Processing Facility Field was discovered in 1991, deemed uncommercial by previous operator Oil Search developed innovative plan to bring SEM into production and negotiated…
SE Mananda Development Hegigio Gorge Bridge Site Hegigio Bridge North construction Abutment underway Facilities and pipeline construction South underway Abutment Spud first well July 2005 (subject to weather) First oil end 3Q 2005…
NW Moran Development NW Moran 1X well Successful appraisal of the NW extension to Moran Will be fully appraised by Moran 10 Extended Production Test (EPT) NW Moran 1X Moran Field ST5 M ST4 ai n Th ru M4/6/9 Pad st…
PNG Exploration Major seismic programme to mature prospects for drilling Drilling activity currently focused on pursuing development opportunities given the high oil price environment Exploration prospects - Mananda Attic (100 mmbbl) -…
2. Gas Commercialisation
Gas Commercialisation Unprecedented interest in gas developments in PNG Fundamentals for successful sequence of developments coming together Next 12-18 months critical for delivery
PNG Gas Project - Scope Joint Venture between: ExxonMobil (39.4%, Operator), Juha Oil Search (54.2%), Hides Nippon Oil (3.4%), MRDC (3%) Gas sales only, condensate Moran exported with existing crude Kutubu Conversion of existing…
Australian Pipeline Planned Pipeline route, but subject to change 50:50 joint venture between AGL and Petronas PNG Hides (APC). APC is responsible for Kutubu Gobe Port Moresby building, owning and Torres Strait Existing…
So What is Different Now Simple design configuration optimises oil facilities, while accelerating liquids production Capital efficient Lower market thresholds especially with in- country gas based industry development Economics…
Gas Commercialisation Design Concept Total 650 mmscfd Gas Production HIDES facilities production Multiphase Full Condensate Recovery pipeline 600mmscfd KUTUBU CPF Oil production & AGOGO 165mmscfd gas CPF Additional…
FEED decision has started the clock: Project participants are committed to completing FEED by end 2005 and making an investment decision in mid-2006 Key Australian east and south coast energy stakeholders must take a position Will PNG…
Clear need for gas in Eastern Australia Wood Mackenzie analysis suggests even with PNG, Coal Bed Methane & Yet-to-Find (YTF) gas there is a clear need for new sources of gas supply to meet demand Eastern Australia - Supply & Demand…
Other Gas Commercialisation Options Petrochemical plant in Port Moresby ITA signed with Mitsubishi Gas Chemical/Itochu to sell 86 PJ pa gas to petrochemical plant in Port Moresby MGC/ITCs detailed feasibility studies well advanced…
3. Building Middle East/North Africa portfolio
MENA Licence Interests Area 18 Libya Dubai East Ras Qattara Office Egypt BLK 35 BLK 43 Yemen Yemen Sanaa BLK 15 Office Yemen
Nabrajah Field, Block 43, Yemen Nabrajah field discovered in early 2004 Following successful appraisal programme of shallower Qishn sandstone, development activity commenced in late 2004 Nabrajah-5 appraisal well discovered oil…
Nabrajah Field Basement/Kohlan Nabrajah-5 has confirmed oil in the Fractured Basement and Kohlan Formation carbonates Basement well test data from N-2 well (gas) and N-5 (oil) wells imply they are in pressure communication with no…
Nabrajah Field Nab5 Nab1 Nab4 Nab6 (projected) SE NW HARSHIYAT FM. Qishn OWC 1554m SRD QISHN CARB. Basement GWC QISHN SST. 2025m SRD Kohlan ODT 2224m SRD SAAR CARB. KH O LAN DOL O MIT E Nab5 TD 2568m…
Nabrajah Field Basement/Kohlan Closure in this area Possible is unconstrained by 600 m oil column mapping 250 m oil column Nabrajah 2 Nabrajah 5
Nabrajah Nearby Basement Fields KHARIR FIELD Block 10 producing 30,000bopd: 80% comes from the Basement Kharir Sunah Recent KH A210 well flowed 7,000bopd; 500m oil column Depth of deepest open fractures has not yet been found in…
Continued Measured Expansion In addition to Block 43 drilling, two well exploration programme in Block 15, offshore Yemen (Oil Search-operated) will commence in late 2005 Egypt. First well on East Ras Qattara Block in 2006. Operator -…
Social Responsibility Oil Search taking a business approach based on sustainable developments: Extending production and facilities life Pro-active maintenance programmes Building core expertise of staff through Oil Search Academy…
Production Outlook Oil Search production forecast (mmboe) 25.0 20.0 15.0 PNG Gas Project New Developments 10.0 Existing Fields 5.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Existing fields include…
Summary Growing oil production base, with three new developments (NW Moran, SE Mananda & Nabrajah) commencing production in 2005 Improved profitability through value optimisation initiatives Unhedged exposure to oil prices Tangible…
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