Skip to main content 2013 Strategy Update – BG Group Investor Presentation | Shale Experts
Loading...
Pm

2013 Strategy Update – BG Group

BG Group · May 14, 2013 · 61 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2013 Strategy Update – BG Group – slide 1
    Strategy Update 2013 Strategy Update 14 May 2013 Deepsea Metro I drill ship, Tanzania
  2. 2013 Strategy Update – BG Group – slide 2
    Strategy Update Welcome Andrew Gould Chairman Methane Shirley Elisabeth LNG vessel
  3. 2013 Strategy Update – BG Group – slide 3
    Strategy Update Introduction Chris Finlayson Chief Executive Cidade de Paraty, FPSO 3
  4. 2013 Strategy Update – BG Group – slide 4
    Strategy Update Introduction Two highly distinctive capabilities World class exploration & unique LNG model BG Group: Excellent growth assets to develop strengths to Strong growth in demand for gas and LNG build on Big enough to…
  5. 2013 Strategy Update – BG Group – slide 5
    Strategy Update Introduction Focus on early Invest 1.6-1.8 bn More active stage origination, in exploration per portfolio What we discovery & year management to will do development accelerate value delivery differently Prioritise…
  6. 2013 Strategy Update – BG Group – slide 6
    Strategy Update Introduction Strong growth in E&P and LNG volumes Proportion of production with cash margins 50/boe to triple over next 5 years Delivering Earnings to grow faster than production shareholder value Capital expenditure…
  7. 2013 Strategy Update – BG Group – slide 7
    Strategy Update Introduction What this Agenda How we How we will strategy create value deliver value delivers 8
  8. 2013 Strategy Update – BG Group – slide 8
    Strategy Update How we create value Dolphin production platform, Trinidad and Tobago
  9. 2013 Strategy Update – BG Group – slide 9
    Strategy Update How we create value What this Levers of How we How we will strategy create value deliver value value delivers creation World-class exploration Unique LNG business 10
  10. 2013 Strategy Update – BG Group – slide 10
    Strategy Update How we create value 15 giant UK Buzzard Kazakhstan Kashagan discoveries Kalamkas Aktote Egypt in 15 years Scarab & Saffron Indonesia Simian Vorwata Bolivia Margarita Brazil Tanzania Lula Australia Jodari…
  11. 2013 Strategy Update – BG Group – slide 11
    Strategy Update How we create value BG Group organic reserve and 3 year reserve replacement** Value creation*** 2002-11 (bn) resource adds* (mmboe) 2500 300% Proven industry 1500 200% leading explorer 500 100% -500 0%…
  12. 2013 Strategy Update – BG Group – slide 12
    Strategy Update How we create value Simple lean Entrepreneurial exploration culture organisation Basis of long- term success: exploration Simple screening Single integrated process portfolio 13
  13. 2013 Strategy Update – BG Group – slide 13
    Strategy Update How we create value Carbonates Proven: Brazil, Kazakhstan, Tunisia, India New: Kenya, Honduras Wide Tertiary Deltas geological Proven: Trinidad and Tobago, Egypt, Thailand technical New: Tanzania skillset HPHT…
  14. 2013 Strategy Update – BG Group – slide 14
    Strategy Update How we create value Existing hubs New basins Exploration Leverage our current positions Focus on finding new giant discoveries strategy Maximise use of existing infrastructure Build on knowledge of local geology…
  15. 2013 Strategy Update – BG Group – slide 15
    Strategy Update How we create value US (Lower 48) North Sea (UK & Norway) Thailand E&A maintaining HPHT play with 1 Tie-ins to Bongkot land position bn boe Deeper Oligocene Thailand / Cambodia OCA 400 mmboe An extensive portfolio…
  16. 2013 Strategy Update – BG Group – slide 16
    Strategy Update How we create value Year of entry: 2008/09 2010 2011 2012 2013 Australia Tanzania Kenya Uruguay Honduras Exploring & Drilled over 40 Bowen CSG Acquired over 10000 sq km 3D Acquired over 4500 sq km 3D + BGs…
  17. 2013 Strategy Update – BG Group – slide 17
    Strategy Update How we create value Existing hubs Norway New basin entry UK Exploration USA Egypt 2013-2015 Honduras Trinidad &Tobago Kenya Thailand activity Bolivia Brazil Tanzania Australia Madagascar Uruguay…
  18. 2013 Strategy Update – BG Group – slide 18
    Strategy Update BG Groups LNG business QCLNG Terminal, Curtis Island, Australia
  19. 2013 Strategy Update – BG Group – slide 19
    Strategy Update How we create value Global gas supply (bcma) 5000 CAGR 2.6% Other CAGR 8.8% Far East Middle Strong 4000 Russia & East 100% demand for Decline Central Asia of 3000 current gas Americas supply 2000…
  20. 2013 Strategy Update – BG Group – slide 20
    Strategy Update How we create value Global LNG supply (mtpa) 500 External LNG trade forecasts* 400 Emerging Supply gap: LNG supply 150 mtpa 300 gap Under construction 200 Supply: existing and under Existing construction…
  21. 2013 Strategy Update – BG Group – slide 21
    Strategy Update How we create value Highly differentiated gas markets Market Linking gas Resource BG has knowledge to markets development distinctive skills for gas Knowledge, skills and capability across whole gas chain & LNG…
  22. 2013 Strategy Update – BG Group – slide 22
    Strategy Update How we create value Global reach 2017 Sales position Hub linked Uncontracted BG Groups Oil linked LNG business Regasification Long-term supply Long-term sales LNG Shipping & Marketing operating profit (m) 2012…
  23. 2013 Strategy Update – BG Group – slide 23
    Strategy Update How we create value Supply* Flexible portfolio Markets* Spot Europe USA Short- Flexible LNG Owned South term America Equity portfolio 3rd- party Shipping* Long- term Asia Flexibility to supply markets…
  24. 2013 Strategy Update – BG Group – slide 24
    Strategy Update How we create value Supply facilitates markets Supply Markets Using our flexibility to grow Markets pull supply Pre-capture new markets Customer relationships give confidence to: Marketing advantage (de-risks…
  25. 2013 Strategy Update – BG Group – slide 25
    Strategy Update How we create value AB supply Singapore Sanction QCLNG: Commercialising equity gas portfolio sale QCLNG 2008 Identified large under-developed resource near growth markets LNG portfolio de-risked CSG-LNG for buyers…
  26. 2013 Strategy Update – BG Group – slide 26
    Strategy Update How we create value AB supply Singapore Sanction CNOOC & Commit Sabine Pass: Commercialising portfolio sale QCLNG Tokyo Gas Sabine 3rd-party gas 2008 sales Pass Identified potential for US exports Signed first US…
  27. 2013 Strategy Update – BG Group – slide 27
    Strategy Update How we create value AB supply Singapore Sanction CNOOC & Commit CNOOC 2 portfolio sale QCLNG Tokyo Gas Sabine & GSPC 2008 sales Pass sales Flexible model in practice Supply Contracted Uncontracted 28
  28. 2013 Strategy Update – BG Group – slide 28
    Strategy Update How we create value Multiple new LNG supply Prince Rupert: 14 mtpa Lake Charles: 15 mtpa Tanzania: 10 mtpa QCLNG: 4.25 mtpa options Attractive plant site No BG capital BG operated blocks 1, 3 and 4 Third train…
  29. 2013 Strategy Update – BG Group – slide 29
    Strategy Update How we create value Access Explore Execute Entry Bolivia Sanction Huacareta Australia Bowen CSG Strong Kenya Egypt Lake Charles LNG Lula further development WDDM pipeline of Oligocene Karachaganak expansion…
  30. 2013 Strategy Update – BG Group – slide 30
    Strategy Update How we will deliver value Miskar production platform, Tunisia
  31. 2013 Strategy Update – BG Group – slide 31
    Strategy Update How we will deliver value What this Levers of How we How we will strategy value create value deliver value delivers creation Active portfolio management Capability in projects & operations Lean & agile…
  32. 2013 Strategy Update – BG Group – slide 32
    Strategy Update How we will deliver value Our goal Track record Active Realise value from E&P and LNG assets Balanced portfolio of 10-15 high quality assets Exited non-core T&D and power businesses Release 8 bn capital by end…
  33. 2013 Strategy Update – BG Group – slide 33
    Strategy Update How we will deliver value Disciplined capital allocation is key to successful portfolio management Rich opportunity set Disciplined More projects than investment capacity capital Investment decisions to maximise…
  34. 2013 Strategy Update – BG Group – slide 34
    Strategy Update How we will deliver value New project Production / Development opportunities LNG sales Value creation Preferred entry point: early stage Manage risk and capital allocation Capture attractive opportunities…
  35. 2013 Strategy Update – BG Group – slide 35
    Strategy Update How we will deliver value Discovered resources Deliver value to shareholders quicker Production Additions Accelerate monetisation of existing resources Accelerating Strong production growth: 25% of discovered…
  36. 2013 Strategy Update – BG Group – slide 36
    Strategy Update How we will deliver value Deliver value from Capability spans opportunities & across project ensure reliable types & size Project production execution & operations: Influence with Attractive partner key to value…
  37. 2013 Strategy Update – BG Group – slide 37
    Strategy Update How we will deliver value Average per Benchmarking boe cost Average schedule Strong schedule performance overrun Weak performance Weak 80% performance Cost performance comparable with performer Large capital on…
  38. 2013 Strategy Update – BG Group – slide 38
    Strategy Update How we will deliver value Annual unit opex (/boe)* Production efficiency (2009-12) 20 Egypt Proven 15 Karachaganak operational Bolivia capability 10 Trinidad and Tobago India 5 Thailand 0 Tunisia 2008…
  39. 2013 Strategy Update – BG Group – slide 39
    Strategy Update How we will deliver value CEO Lean & agile Functions Commercial CFO COO Exploration Global Energy Marketing* organisation /Technical Assets Simplifying our organisation Created new slimmer operating…
  40. 2013 Strategy Update – BG Group – slide 40
    Strategy Update What we expect this strategy to deliver Karachaganak processing complex, Kazakhstan
  41. 2013 Strategy Update – BG Group – slide 41
    Strategy Update What this strategy delivers What this Levers of How we How we will strategy value create value deliver value delivers creation High quality portfolio Value creating growth Attractive shareholder returns…
  42. 2013 Strategy Update – BG Group – slide 42
    Strategy Update What this strategy delivers Base assets & growth How portfolio will Group level guidance Increased projects evolve portfolio Outlook for production Cash margins/boe as % of total production 12 month ahead…
  43. 2013 Strategy Update – BG Group – slide 43
    Strategy Update What this strategy delivers (kboed) 2008-12 performance 600 1.1 bn boe produced 20 bn operating profit; funding growth Base E&P 2013 production lower than 2012 assets* 400 Lower rig count in US & reservoir decline…
  44. 2013 Strategy Update – BG Group – slide 44
    Strategy Update What this strategy delivers Onstream dates Base assets 2013 2014 2015 production milestones East Everest expansion Knarr WDDM Phase 9b Elgin Franklin re-start WDDM Phase 9a Jackdaw sanction Bongkot North Phase…
  45. 2013 Strategy Update – BG Group – slide 45
    Strategy Update What this strategy delivers (mtpa) 2008-12 performance 15 67 million tonnes lifted 12 bn operating profit Existing LNG 10 2013-15 sources Trinidad & Tobago and W Africa 9.2 mtpa contracted offtake 5 Egypt offtake…
  46. 2013 Strategy Update – BG Group – slide 46
    Strategy Update What this strategy delivers LNG production (mtpa) Initial development well advanced 10 250 kboed gross production on plateau QCLNG: 8 LNG and domestic supply Mainly QGC* production strongly 6 3rd-party gas…
  47. 2013 Strategy Update – BG Group – slide 47
    Strategy Update What this strategy delivers LNG offtake (mtpa) Only permitted & sanctioned US LNG export project 6 Expected first LNG end 2015 Sabine Pass: 5.5 mtpa offtake Train 1: 3.5 mtpa (115% HH + 2.25) first LNG in 4…
  48. 2013 Strategy Update – BG Group – slide 48
    Strategy Update What this strategy delivers BG Group total LNG sales* (mtpa) Robust portfolio of high value sales contracts 30 Strong position in oil indexed contracts High value Asian markets 25 LNG sales: Maintain exposure to…
  49. 2013 Strategy Update – BG Group – slide 49
    Strategy Update What this strategy delivers 15 FPSO programme (BM-S-9 & 11) 4 additional leased FPSOs Schedule & gross capacity (kboed) 2 substitute purchased FPSOs (to be 3000 released) Brazil current 2 additional Lula FPSOs…
  50. 2013 Strategy Update – BG Group – slide 50
    Strategy Update What this strategy delivers FPSO capacity (mmboed) Lula: potential further development (BM-S-9 & 11) Studies on-going for additional FPSOs 4 Northern & southern wells and EWT data Lula and Iara 3 in 2013/14 Iara:…
  51. 2013 Strategy Update – BG Group – slide 51
    Strategy Update What this strategy delivers 2013 2014 2015 2016 2017 2018 Committed Current programme programme Brazil Cumulative FPSOs onstream 3 5 6 11 14 15 Growth QCLNG Train 1 (4.25 mtpa) LNG Sales milestones Train 2 (4.25…
  52. 2013 Strategy Update – BG Group – slide 52
    Strategy Update What this strategy delivers Total reserves and resources* (mmboe) Strong discovered resource base of 14 bn boe 20000 Current programme produces 8 bn boe** Defined future projects produces 4 bn boe** Assets & Risked…
  53. 2013 Strategy Update – BG Group – slide 53
    Strategy Update What this strategy delivers 2015 volumes at current equity levels: % of production by EBITDA**/boe Group E&P production: 775-825 kboed 100% Total LNG offtake: 17-20 mtpa Strong Financial outlook financial Cash…
  54. 2013 Strategy Update – BG Group – slide 54
    Strategy Update What this strategy delivers 2012-2014 cashflow 2015-2017 cashflow Maintain strong balance sheet Disposals Strong Invest in further growth Return cash to shareholders cashflow: Dividends & interest Dividends…
  55. 2013 Strategy Update – BG Group – slide 55
    Strategy Update What this strategy delivers Cash from operations and portfolio rationalisation Capital and funding Safe & reliable operations Maintain strong balance sheet Grow dividends priorities Grow exploration Return cash…
  56. 2013 Strategy Update – BG Group – slide 56
    Strategy Update Conclusions Dragon LNG import terminal, UK
  57. 2013 Strategy Update – BG Group – slide 57
    Strategy Update Conclusions BG Group High growth E&P & LNG company Our Strategy World class Actively manage Prioritise value exploration & our portfolio to over production unique LNG reinvest in growth business Focused…
  58. 2013 Strategy Update – BG Group – slide 58
    Strategy Update Conclusions Strong growth in E&P and LNG volumes Proportion of production with cash margins 50/boe to triple over next 5 years What we Earnings to grow faster than production expect this strategy to Capital…
  59. 2013 Strategy Update – BG Group – slide 59
    Strategy Update 2013 Strategy Update 14 May 2013 Deepsea Metro I drill ship, Tanzania
  60. 2013 Strategy Update – BG Group – slide 60
    Strategy Update British pound E&P Exploration and production United States dollar EBITDA Earnings before interest, taxes, A Australian dollar depreciation and amortisation < Less than eg for example Glossary Greater than…
  61. 2013 Strategy Update – BG Group – slide 61
    Strategy Update mmbtu Million British thermal units mtpa Million tonnes per annum NPV Net present value OCA Overlapping Claims Area Glossary Opex pa Operating expenditure per annum QCLNG Queensland Curtis LNG QGC QGC Pty…

From the store

Browse maps, data & reports in the Shale Experts store