Skip to main content The Integrated Gas Major – BG Group Investor Presentation | Shale Experts
Loading...
Pm

The Integrated Gas Major – BG Group

BG Group · Feb 5, 2009 · 78 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. The Integrated Gas Major – BG Group – slide 1
    The Integrated Gas Major London 5 February 2009
  2. The Integrated Gas Major – BG Group – slide 2
    Welcome Sir Robert Wilson Chairman
  3. The Integrated Gas Major – BG Group – slide 3
    Introduction Frank Chapman Chief Executive
  4. The Integrated Gas Major – BG Group – slide 4
    Legal Notice Certain statements included in this presentation contain forward-looking information concerning BG Groups strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the…
  5. The Integrated Gas Major – BG Group – slide 5
    The Integrated Gas Major Key messages Record 2008 results EPS up by 74% Clear, powerful strategy Integrated Gas Major Transformational strategic success in Brazil and Australia Industry leading LNG business with sustainable…
  6. The Integrated Gas Major – BG Group – slide 6
    The Integrated Gas Major Overview Strategy 2008 results Outlook Portfolio for growth Conclusions 6
  7. The Integrated Gas Major – BG Group – slide 7
    Strategy
  8. The Integrated Gas Major – BG Group – slide 8
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure competitively high value markets priced resources Build & access markets Equity reserves Serve customers Contracted resources Skills to succeed across…
  9. The Integrated Gas Major – BG Group – slide 9
    Strategy BG Group operating profit Total operating profit ( million) 6000 CAGR 38% 1997-2008 2008 ROACE: 29% 5,355 5000 4000 3,248 3,103 3000 2,389 2000 1,520 1,287 1000 833 888 688 229 330 160 0 1997 2000 2003 2006…
  10. The Integrated Gas Major – BG Group – slide 10
    Strategy Business environment & strategic positioning Trend BG position Falling energy prices Low cost, long life portfolio Falling input costs Timing of investment Pressure on national economies Host government alignment Demand…
  11. The Integrated Gas Major – BG Group – slide 11
    Strategy Capital discipline & investment focus Rigorous investment process Focus on value creation and capital efficiency Projects screened across wide range of prices Strong low cost portfolio provides choices Cash generation &…
  12. The Integrated Gas Major – BG Group – slide 12
    2008 results Ashley Almanza Chief Financial Officer
  13. The Integrated Gas Major – BG Group – slide 13
    2008 results Group highlights Strong profit and cash flow growth EPS up 74% Underlying EPS up 28% Cash flow from operations up 70% Strong financial position Dividend up 20% Robust outlook Excellent results, robust outlook 13
  14. The Integrated Gas Major – BG Group – slide 14
    2008 results Group results Q4 Full Year Full Year 2008 2008 YOY E&P 677m 3,512m +47% LNG 456m 1,585m +204% T&D (6m) 160m -35% Power 21m 118m -9% Other (9m) (20m) -46% Total Operating Profit 1,139m 5,355m +65% Net Finance income 21m…
  15. The Integrated Gas Major – BG Group – slide 15
    2008 results E&P 2008 results Q4 Full Year Full Year 2008 2008 YOY Production Volumes (mmboe) 57.3 226.7 +3% Operating Profit pre exploration 822m 3,963m +46% Exploration Expense (145m) (451m) +34% Total Operating Profit 677m…
  16. The Integrated Gas Major – BG Group – slide 16
    2008 results 2008 proved reserve additions (mmboe) Total reserves replacement 285% (3 year total reserve replacement 141%) 273 646 Constant price total reserves replacement 165% Underlying performance Organic reserves 144…
  17. The Integrated Gas Major – BG Group – slide 17
    2008 results E&P benchmarking 3 year F&D cost trend (/boe) 35 30 25 20 18.0 14.6 15 13.2 Excluding QGC acquisition 10 5 0 2002-04 2003-05 2004-06 2005-07 2006-08 BG Top quartile Combined Companies Bottom quartile…
  18. The Integrated Gas Major – BG Group – slide 18
    2008 results E&P benchmarking Annual unit opex cost trend (/boe) 14 12 10 8 8.2 6.4 6 4 2 0 2003 2004 2005 2006 2007 2008 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2008, BG Group Peer…
  19. The Integrated Gas Major – BG Group – slide 19
    2008 results LNG total operating profit Q4 Full Year Full Year 2008 2008 YOY Shipping & Marketing 445m 1,524m +229% Liquefaction 46m 145m +14% Business Development (35m) (84m) +22% Total 456m 1,585m +204% Continuing…
  20. The Integrated Gas Major – BG Group – slide 20
    2008 results T&D total operating profit Q4 Full Year Full Year 2008 2008 YOY Comgas 69m 283m +36% Other 9m 45m +25% Total Excluding RCA* 78m 328m +34% Regulatory Current Account (84m) (168m) Total Operating Profit (6m) 160m…
  21. The Integrated Gas Major – BG Group – slide 21
    Outlook
  22. The Integrated Gas Major – BG Group – slide 22
    Outlook Key reference conditions: 2009 sensitivities Reference Change Operating Profit E&P: 55 Brent +/- 1/bbl +/- 55m Group: 1.50 / +/- 10 cents +/- 300m Material impact of US Dollar exchange rate 22
  23. The Integrated Gas Major – BG Group – slide 23
    Outlook Production BG net production (000s boepd) 2005-12 1000 CAGR 6-8% 2009 800 680,000 boepd 600 Key projects 2008-12 400 Karachaganak Dolphin Miskar Panna/Mukta/Tapti QGC upstream Tupi 200 Jasmine Margarita Guara…
  24. The Integrated Gas Major – BG Group – slide 24
    Outlook LNG outlook Capital invested Liquefaction 2009 1.1bn 2010 1.1bn Segment PBIT * 2009 1.4bn - 1.5bn Shipping Volumes 2010 1.2bn - 1.3bn and 2009 13 mtpa Marketing 2010 13 mtpa * PBIT based on 2009 reference…
  25. The Integrated Gas Major – BG Group – slide 25
    Outlook LNG total operating profit LNG total operating profit ( million) CAGR 141% 2002-2008 1750 1,585 1.4 to 1.5bn 1500 1.2 to 1.3bn 1250 1000 750 521 500 352 250 181 77 99 8 0 2002 2005 2008 2009 2010…
  26. The Integrated Gas Major – BG Group – slide 26
    Outlook Capital investment 2008 Organic 3.0 bn QGC 2.4 bn 2009-2012 16 bn over 4 years Brazil & Australia focus 4.0 bn in 2009 Maintaining capital discipline 26
  27. The Integrated Gas Major – BG Group – slide 27
    Outlook Capital structure and dividend Strongly funded Low cost base Strong cash conversion Dividend increased to 11.2 pence, up 20% Dividend growth in line with long-term underlying earnings 2009 reference conditions, Oil…
  28. The Integrated Gas Major – BG Group – slide 28
    Outlook Summary Strong profit growth EPS up 74% E&P competitive position strengthened Production growth plans confirmed LNG performance extended Strong financial position Dividend up 20% Delivering value to shareholders 28
  29. The Integrated Gas Major – BG Group – slide 29
    Portfolio for growth Frank Chapman Chief Executive
  30. The Integrated Gas Major – BG Group – slide 30
    Portfolio for growth Key country portfolio Norway UK Kazakhstan USA Tunisia India Trinidad & Tobago Egypt Oman Nigeria Brazil Australia Core countries Potential core countries Focusing on developing material…
  31. The Integrated Gas Major – BG Group – slide 31
    Portfolio for growth E&P asset base BG net production (000s boepd) of assets on stream at end 2006 only 700 600 500 400 Assets in production in 2006 only 300 200 100 0 2006A 2009 2012 2015 At 2009 reference conditions…
  32. The Integrated Gas Major – BG Group – slide 32
    Portfolio for growth LNG contracted volumes BG contracted volumes (mtpa) 15 10 Contracted volumes only Contracted volumes only 5 0 2006A 2009 2012 2015 2018 LNG business underpinned by contracted volumes 32
  33. The Integrated Gas Major – BG Group – slide 33
    Portfolio for growth LNG: Global LNG portfolio UK USA Italy Trinidad & Tobago Egypt Singapore* Nigeria EG Australia Chile Current and future equity positions Existing liquefaction Future liquefaction Long-term…
  34. The Integrated Gas Major – BG Group – slide 34
    Portfolio for growth LNG: Business environment 70 mtpa of new LNG by 2011 Recession reducing demand LNG remains attractive Additional ca 150 mtpa of LNG supply needed by 2020 New supply required by 2013-14 LNG market outlook 34
  35. The Integrated Gas Major – BG Group – slide 35
    Portfolio for growth LNG: Termed out volumes Breakdown of LNG volumes (mtpa) Contracted volumes 15 US, primarily Elba Island Chile 10 Brazil, Europe and Asia Flexibility allows value capture 5 Balanced price exposure 0 2009…
  36. The Integrated Gas Major – BG Group – slide 36
    Portfolio for growth LNG: Cost evolution Liquefaction EPC costs (2009 US/tpa) 1,400 BGs portfolio is low cost 1,200 Sustainable advantage Greenfield projects 1,000 Expansion projects Cost BG liquefaction projects* trend Focus on…
  37. The Integrated Gas Major – BG Group – slide 37
    Portfolio for growth LNG: Volume outlook mtpa 30 T&T & OKLNG Other & Brass 25 NLNG Train 7 Australia 20 15 Other term supply 10 Nigerian LNG T4/5 Equatorial Guinea Contracted Egyptian LNG T2 5 Atlantic LNG T4 Atlantic…
  38. The Integrated Gas Major – BG Group – slide 38
    Portfolio for growth LNG: Global position Liquefaction capacity 2015 (mtpa) Contracted LNG supply 2015 (mtpa) Shell KOGAS ExxonMobil BG BG TEPCO Total GDF Suez BP Shell Chevron Tokyo Gas Eni Total Mitsubishi Chubu…
  39. The Integrated Gas Major – BG Group – slide 39
    Portfolio for growth LNG: Conclusions BG: Global LNG player Portfolio has longevity and scale Highly flexible portfolio Growth secured Low cost base/contracts give sustainable advantage Sustainable competitive advantages create…
  40. The Integrated Gas Major – BG Group – slide 40
    Portfolio for growth Australia: QGC Proposed LNG plant Integration with BG nearly complete Curtis Island Gladstone Strategically transformational move Existing pipeline QCLNG Acquisition cost 2.4 bn (4.1 bn) proposed pipeline…
  41. The Integrated Gas Major – BG Group – slide 41
    Portfolio for growth Australia: QGC business Upstream Trunkline Production 225 kboepd by 2015 380 km trunkline ca 2000 wells to end 2014 42 diameter 9 processing plants Expandable with compression 28 compressor stations QCLNG…
  42. The Integrated Gas Major – BG Group – slide 42
    Portfolio for growth Australia: QGC upstream/trunkline progress Upstream 2P reserves now ca 3.7 tcf up 100% Reserves/resources now over 11 tcf Additional exploration upside Currently drilling ca 200 wells/year Facilities…
  43. The Integrated Gas Major – BG Group – slide 43
    Portfolio for growth Australia: QCLNG plant/marketing progress Curtis Island, Queensland Environmental Management Precinct LNG plant Curtis Island Industry Precinct Two 3.7 mtpa trains in Phase 1 Graham Creek Site acquisition…
  44. The Integrated Gas Major – BG Group – slide 44
    Portfolio for growth Australia: Production BG net production (000s boepd) Substantial E&P growth driven by: 250 Two trains of LNG 200 Increased domestic sales 150 Further growth potential 100 50 0 2009 2014 2019 At 2009…
  45. The Integrated Gas Major – BG Group – slide 45
    Portfolio for growth Brazil: Comgs Comgs concession area GDP (2007) 333 bn Brazils largest gas distributor Population 29.2 million 2008 gas sales 14.6 mmcmd Number of households 7.7 million Gas % of energy consumption* 9% Over…
  46. The Integrated Gas Major – BG Group – slide 46
    Portfolio for growth Brazil: Santos Basin overview 50 km Rio de Janeiro Major new discoveries: Guara & Iara BM-S-52 Initial developments proposed BG 40% BM-S-10 Corcovado-1 BG 25% BM-S-11 Corcovado-2 BG 25% BG discovered resources…
  47. The Integrated Gas Major – BG Group – slide 47
    Portfolio for growth Brazil: Tupi 20 km Appraisal wells* Discovered 2006, production 2009 Iracema Extended well test Tupi-Sul re-entry underway Vessel conversion completed First production Q2 2009 Tupi-1 Up to 15 months, ca…
  48. The Integrated Gas Major – BG Group – slide 48
    Portfolio for growth Brazil: Tupi 50 km Rio de Janeiro Processing & Initial development sanctioned Gathering Terminal Gross capex 3.7 bn* Existing gas pipeline Major contracts awarded 145 km Mexilho Oil 100,000 bopd & gas 175…
  49. The Integrated Gas Major – BG Group – slide 49
    Portfolio for growth Brazil: Guara Discovered June 2008 Material resources High quality reservoir Outline forward plans Re-entry/test of Guara-1, 2009 Guara-1 Full field development studies Appraisal wells 2010/11 Possible EWT in…
  50. The Integrated Gas Major – BG Group – slide 50
    Portfolio for growth Brazil: Iara Discovered August 2008 Gross resources 3-4 bn boe Thick reservoir section Oil 25-27o API Outline forward plans Re-entry/test of Iara-1 in Q1/2 2009 Full field development studies Appraisal wells…
  51. The Integrated Gas Major – BG Group – slide 51
    Portfolio for growth Brazil: Santos Basin exploration 50 km Rio de Janeiro Five exploration wells in 2009 BMS-9 (BG 30%) Iguacu complex BM-S-52 BG 40% Two wells Corcovado-1 Corcovado-2 First well spudded 27th Jan 2009…
  52. The Integrated Gas Major – BG Group – slide 52
    Portfolio for growth Brazil: Production BG net production (000s boepd) 450 Three major new developments Establish infrastructure for area 300 Economic breakeven below 40/ bbl* Scope for improved economics 150 0 2009 2012…
  53. The Integrated Gas Major – BG Group – slide 53
    Portfolio for growth Kazakhstan: Karachaganak Record production in 2008 Gross production 136 mmboe Production CAGR 18% 1998-2008 Maintenance shutdown completed Fourth stabilisation train Production start up in 2010 Western…
  54. The Integrated Gas Major – BG Group – slide 54
    Portfolio for growth Kazakhstan: Karachaganak field expansion Phase III development stages Karachaganak field Stage 1 Further stages Increased oil export Increased capacity High value markets Increased oil recovery World class…
  55. The Integrated Gas Major – BG Group – slide 55
    Portfolio for growth Kazakhstan: Karachaganak outlook BG net production 000s boepd 200 Phase III, stage 1 Drilling, compression & gas sales 150 Fully utilise existing facilities Optimise cost 100 Phase III, further stages Scope…
  56. The Integrated Gas Major – BG Group – slide 56
    Portfolio for growth UK: Hub development Armada, Everest & Lomond Hubs CATS Rev (Third party field) Maria Forties Pi North Asset swap between BG & BP Armada Armada Prospects Seymour BG will operate Everest & Lomond Third party…
  57. The Integrated Gas Major – BG Group – slide 57
    Portfolio for growth UK: Production BG net production 000s boepd 200 Exceptional record over last 5 years Further Plateau extended by 6 years potential 150 Net reserves added ca 300 mmboe 50 mmboe 2008 strong performance 100 Buzzard…
  58. The Integrated Gas Major – BG Group – slide 58
    Portfolio for growth Egypt Successful project delivery Rosetta Phase 3 completed WDDM Phase 4 completed WDDM Phase 5 on track Sequoia on track Production records in 2008 Improved gas prices Consistent delivery and value…
  59. The Integrated Gas Major – BG Group – slide 59
    Portfolio for growth Tunisia BG net production (000s boepd) 60 Miskar (BG 100%) Further potential Four infill wells in 2008/09 50 Hasdrubal De-bottlenecking (+5%) complete 40 Additional exploration potential Miskar infill/ 30…
  60. The Integrated Gas Major – BG Group – slide 60
    Portfolio for growth India BG in0 India Panna Gujarat Gas (GGCL) Panna, Mukta, Tapti (BG 30%) Record production in Panna & Tapti Secured higher gas prices Panna: New WHPs/wells in progress Mukta: Optimisation ongoing Panna…
  61. The Integrated Gas Major – BG Group – slide 61
    Portfolio for growth Trinidad & Tobago NCMA 3c/d Poinsettia project First gas January 2009 ECMA Dolphin Increased domestic sales Greater Dolphin Area Uncontracted gas ca 4 tcf gross Block 5c (BG 30%) 3 successful wells;…
  62. The Integrated Gas Major – BG Group – slide 62
    Portfolio for growth Norway 2009 drilling Dalsnuten Jordbaer Trondheim 2008 Exploration success discovery Jordbaer & Pi North, BG operated North Sea Bergen Oslo Jordbaer Central discovery Bream Pi North appraisal discovery…
  63. The Integrated Gas Major – BG Group – slide 63
    Portfolio for growth E&P: E&A progress Drilling 2008 Seismic 2008 Completed 43 wells*, 22 successes UK Canada Norway Key successes Guara and Iara (Brazil) Block 5c (Trinidad) Jordbaer (Norway) China India CSG (Australia) Brazil…
  64. The Integrated Gas Major – BG Group – slide 64
    Portfolio for growth E&P: 2009 E&A preview Summary of well completions* Alaska Canada UK Norway New plays 3 1 well 7 wells 1 well 1 well Play extenders 7 - 10 10-16 wells 1 well Appraisal/near term 23 - 24 production CSG wells ca…
  65. The Integrated Gas Major – BG Group – slide 65
    Portfolio for growth E&P: Reserves and resources CAGR 28% Reserves Reserves/ & Resources/ mmboe Production* Production* 14000 13,126 12000 10,046 3,562 58 years 10000 8,017 8000 3,356 3,722 42 years 2,713 6000 3,122…
  66. The Integrated Gas Major – BG Group – slide 66
    Portfolio for growth E&P: Discovered reserves & resources Total discovered reserves/resources*: 9,564 mmboe Brazil Other Deepwater** Onshore UK Egypt Trinidad Australia Kazakhstan Offshore Conventional * 2P reserves…
  67. The Integrated Gas Major – BG Group – slide 67
    Portfolio for growth E&P: Production outlook 2000 13,126 2000 1.6 million boepd 3,562 3,562 CAGR 8% 1500 1500 1.2 million boepd CAGR 6% 3,722 3,722 1000 1000 3,383 3,384 500 500 2,459 2,459 00 2005 2005A 2020 2020 SEC…
  68. The Integrated Gas Major – BG Group – slide 68
    Portfolio for growth E&P: Production scenario BG net production (000s boepd) 1600 1.6 million boepd Exploration 1.2 million 1200 boepd Australia 800 Brazil 400 All other countries 0 2008 2008 2012 2012 2016 2016…
  69. The Integrated Gas Major – BG Group – slide 69
    Portfolio for growth E&P: Key projects and opportunities BG net production (000s boepd) 2020 1,200-1,600,000 2008-20 boepd 1600 CAGR 6-8% 1200 800 Medium term 2008-12 Long term 2013-20 Key projects: Key…
  70. The Integrated Gas Major – BG Group – slide 70
    Portfolio for growth BG Group performance summary BG performance summary Total Resources 10.0 bn boe 13.1 bn boe 2P Reserves 3.6 bn boe 5.8 bn boe Earnings 3.6 bn 5.8 bn Strong BG performance Cash Flow (3) 5.5 bn 8.3 bn over…
  71. The Integrated Gas Major – BG Group – slide 71
    Conclusions
  72. The Integrated Gas Major – BG Group – slide 72
    The Integrated Gas Major Key messages Record 2008 results EPS up by 74% Clear, powerful strategy Integrated Gas Major Transformational strategic success in Brazil and Australia Industry leading LNG business with sustainable…
  73. The Integrated Gas Major – BG Group – slide 73
  74. The Integrated Gas Major – BG Group – slide 74
    Appendix
  75. The Integrated Gas Major – BG Group – slide 75
    Appendix Other countries Thailand: Bongkot Oman: Abu Butabul BG net production (000s boepd) Bongkot North Five wells drilled in 2008 40 Full potential Further plateau extension achieved CGR 70-120 bbl/mmscf Three discoveries in 2008…
  76. The Integrated Gas Major – BG Group – slide 76
    Appendix Other countries Bolivia Algeria Hassi Ba Hamou (BG 36.75%*) Margarita BG 100% BG net resources ca 450 mmboe Fields and La Field Vertiente Six wells drilled, 4 successful Plant BG 100% fields One new discovery Small…
  77. The Integrated Gas Major – BG Group – slide 77
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US 55/bbl US Henry Hub 7.25/mmbtu US/UK exchange rates of 1.5:1 Prepared under International Financial Reporting Standards All production includes fuel gas PRINCIPAL…
  78. The Integrated Gas Major – BG Group – slide 78
    Appendix Definitions Increase or (decrease) GGCL Gujarat Gas Company Ltd United States dollar HH Henry Hub UK pounds sterling HIIP Hydrocarbons initially in place 000s Thousands HOA Heads of Agreement 2D Two dimensional seismic kboepd…

From the store

Browse maps, data & reports in the Shale Experts store