UBS Global Oil & Gas conference Martin Houston Executive Vice President and Managing Director Americas & Global LNG Rio de Janeiro 23 September 2008
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…
The Integrated Gas Major Agenda BG Group overview Brazil Comgas Santos Basin Global LNG Trends in LNG markets Industry developments Summary Delivering value to shareholders 3
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…
Strategy Countries of current operation Norway Canada UK Kazakhstan Italy Israel / PA USA Oman India Tunisia China Algeria Thailand Libya Philippines Trinidad & Tobago Malaysia Egypt Nigeria Brazil Singapore Australia…
Strategy BG Group in South America Brazil - 60.1% stake in Comgas gas distribution company in So Paulo Bolivia - 7 offshore & 1 onshore licences - Tupi, Carioca, Guar, Iara discoveries - LNG agreement with Petrobras - 6…
BG Group in Brazil Comgas Acquired at the privatisation auction 1999 Brazils largest gas distributor 2007 gas sales 13.8 mmcm/d Over 570k customers connected Good economic outlook Legend Gs Natural da Bolivia Potential to grow…
BG Group in Brazil Comgas Total volume (billion m) 5.0 Fast growth with significant 4.3 increase in volume and client base 3.4 2.2 Volume CAGR 18% pa 1999-2007 1.3 Customer CAGR 8% pa 1999-2007 1999 2001 2003 2005 2007…
BG Group in Brazil Santos Basin: drilling and key prospects BM-S- 52 BG 40% Corcovado (2), (3) BM-S- 13 BG 60% BM-S- 10 BM-S- 11 BM-S- 50 BG 25% BG 25% BG 20% Iara (1) Parati Tupi Carioca BM-S- 47 BG 50% Saleta (1)…
BG Group in Brazil Santos Basin: Tupi notional development EWT to assess long term deliverability & producibility e.g. 1 or 2 wells initially, then further use for appraisal Gross production up to 20,000 bopd; Date March 2009…
BG Group in Brazil Main challenges in pre-salt discoveries Water depth 2,000 metres Location 200 km offshore Technology Not beyond existing technology Oil & gas composition Gas infrastructure needed Access to resource capacity…
BG Group in Brazil Summary Brazil - a core country for BG Group Comgas a material and growing business E&P - material discoveries in Santos Basin Santos Basin - a new exploration frontier in Brazil 100% drilling success rate Tupi…
LNG
Global LNG LNG trade growth Wood Mackenzie 2007 500 demand forecast Other North America hiatus 400 Europe LNG growth 2005 2010 Asia Pacific (CAGR 11%) 300 mtpa Industry inflection point 200 LNG growth 1980 2004…
Global LNG Global gas trade the recent past Algeria Middle East Trinidad W. Africa S.E. Asia Markets Australia LNG Pipe Source: BG Group Industry evolving from three main regions 17
Global LNG Global gas trade evolution Norway / Russia Sakhalin Middle East N.Africa Egypt W. Africa Trin / Ven S.E. Asia S. America Australia Markets LNG Existing & proposed Primary (20 mtpa) Pipe LNG trade routes…
Global LNG LNG importing countries Germany Holland Denmark UK Lithuania Ireland Poland Canada Belgium Croatia Albania France Ukraine S. Korea Portugal Turkey Italy Kuwait Japan US Canary Is. (Sp) Spain Jamaica Greece…
Global LNG Global LNG: Markets UK Belgium France USA S. Korea Spain Japan Turkey Italy Taiwan Puerto Rico India Mexico Egypt China Trinidad Singapore** Nigeria EG Australia Brazil Chile Argentina In 2007, BG supplied…
Global LNG BG Groups LNG profitability m 1 400 LNG total operating profit (m) % of Group profit (%) (RHS) 30 % 1 200 24 1 000 18 800 600 12 400 6 200 0 0 2001 2002 2003 2004 2005 2006 2007 H1 2008 FY 2008 Shipping &…
Industry developments LNG in South America Caracas Mxico/EUA VENEZUELA First imports in 2008 Atlntico Five import locations in three COLOMBIA ECUADOR Bogot Manaus countries (Brazil, Argentia, Chile) Urucu Fortaleza by 2009…
Industry developments BG Groups LNG presence in South America Argentina BG Group sold commissioning cargo FOB Trinidad Brazil 2 LNG agreements with Petrobras Supplied Pecem commissioning cargo Supplying the 1st DES sale to Petrobrs…
Industry developments Floating liquefaction Why floating liquefaction Remote or stranded gas Reserves too small for conventional liquefaction Potential locations West coast of Africa (associated gas) Northern Australian waters…
Industry developments CSG a new source of LNG supply CSG to LNG is an opportunity to: Realise world market gas prices Monetise greater volumes of gas CSG to LNG firmly on the global radar Australia leading the way Challenges to…
BG Group LNG summary LNG industry is globalising BG Group a world leader in LNG Significant growth in LNG profitability A world leader in LNG 26
Summary
BG Group Summary BG Groups distinction Gas focused Downstream gas assets Industry-leading performance Extensive investment in South America Santos Basin offers significant growth potential A leader in global LNG Delivering…
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