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The Integrated Gas Major Presentation – BG Group

BG Group · Feb 8, 2007 · 74 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 Presentation – BG Group – slide 1
    BG Group The Integrated Gas Major London 8th February 2007
  2. The Integrated Gas Major Presentation – BG Group – slide 2
    BG Group Welcome Sir Robert Wilson Chairman
  3. The Integrated Gas Major Presentation – BG Group – slide 3
    BG Group Introduction Frank Chapman Chief Executive
  4. The Integrated Gas Major Presentation – BG Group – slide 4
    The Integrated Gas Major Key messages: Delivery Earnings per share up 24% Strong volume growth: E&P +19% & LNG +63% LNG operating profit, up 94% Dividend increased by 20% Share buy-back 750m Delivering exceptional value to…
  5. The Integrated Gas Major Presentation – BG Group – slide 5
    The Integrated Gas Major Key messages: Growth Outstanding earnings outlook to 2009 Distinctive long-life base set of assets improved Significantly enhanced set of projects to 2012+ E&P resources up ca 1bn boe, over 13% increase…
  6. The Integrated Gas Major Presentation – BG Group – slide 6
    The Integrated Gas Major Overview Strategy 2006 results Portfolio for growth Conclusions 7
  7. The Integrated Gas Major Presentation – BG Group – slide 7
    BG Group Strategy
  8. The Integrated Gas Major Presentation – BG Group – slide 8
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure low cost high value markets resources Build & access markets Equity reserves Serve customers Contracted resources Skills to succeed across the gas…
  9. The Integrated Gas Major Presentation – BG Group – slide 9
    Strategy Business environment Trend BG response High prices, rising industry costs Low-cost portfolio Project cycles lengthening Project delivery focus Government resource priorities Stakeholder alignment IOC reserve replacement…
  10. The Integrated Gas Major Presentation – BG Group – slide 10
    Strategy E&P and LNG volumes E&P Production LNG Liquefaction CAGR 15% 1997-2006 CAGR 50% 1999-2006 000boepd mtpa 589 600 7 6.7 504 500 6 457 428 5 400 373 4.1 4 298 300 280 3.2 238 240 3 2.8 200 165 2 1.1 100 1 0.7…
  11. The Integrated Gas Major Presentation – BG Group – slide 11
    Strategy Total operating profit m 3500 CAGR 39% 1997-2006 3,103 3000 2500 2,380 2000 1,513 1500 1,279 1000 833 888 688 500 330 160 229 0 1997 2000 2003 2006 E&P T&D, LNG, Power & Other Continuing operations excluding…
  12. The Integrated Gas Major Presentation – BG Group – slide 12
    BG Group 2006 results Ashley Almanza Chief Financial Officer
  13. The Integrated Gas Major Presentation – BG Group – slide 13
    2006 results E&P 2006 performance Q4 Full Year Full Year 2006 2006 YOY Volume* (boed) 622,000 601,000 +19% Opex 4.82 4.18 +4% Exploration expense 87m 272m +50% Total operating profit 575m 2,457m +27% * Including fuel gas…
  14. The Integrated Gas Major Presentation – BG Group – slide 14
    2006 results 2006 proved reserve additions (mmboe) Underlying performance SEC reserve reserve replacement = 110% replacement = 84% 125.7 (56.4) 2006 Production 184.2 114.9 Revisions New developments Price Net & sales…
  15. The Integrated Gas Major Presentation – BG Group – slide 15
    2006 results E&P benchmarking 3 year F&D cost trend (/boe) Annual unit opex cost trend (/boe) 20 10 18 16 8 14 12 6 10 8 4 6 4 2 2 0 0 2001-03 2002-04 2003-05 2004-06 2001 2002 2003 2004 2005 2006 BG Combined…
  16. The Integrated Gas Major Presentation – BG Group – slide 16
    2006 results E&P outlook 2006-09 5 7% Volume growth 2007 ca 4.60 Opex per bbl 2007 Exploration 320m expense Good prospects 17
  17. The Integrated Gas Major Presentation – BG Group – slide 17
    2006 results LNG total operating profit Q4 Full Year Full Year 2006 2006 YOY Shipping & Marketing 118m 332m +177% Liquefaction 25m 104m -6% Business Development 28m 84m +68% LNG segment 115m 352m +94% Continuing operations…
  18. The Integrated Gas Major Presentation – BG Group – slide 18
    2006 results Global LNG: Outlook Capital invested Return * Liquefaction 2009 0.9bn 2007 09 ca 13% Shipping Volumes EBITDA margin ** and 2007 12.3 mtpa 2007 16% Marketing 2009 13.5 mtpa Rising to 18% in 2009 * Pre-tax nominal…
  19. The Integrated Gas Major Presentation – BG Group – slide 19
    2006 results T&D total operating profit (m) 7 231 39 185 + 25% 2005 Excluding Comgas Other 2006 MetroGAS Continuing operations excluding disposals and certain re-measurements Total operating profit includes BGs share of…
  20. The Integrated Gas Major Presentation – BG Group – slide 20
    2006 results Power total operating profit Total operating profit 106m Premier Power maintenance reduced 2006 result New US assets: Dighton and Lake Road US to contribute 18m for part year 2007 NEPOOL market strengthening…
  21. The Integrated Gas Major Presentation – BG Group – slide 21
    2006 results Group financial performance Quarter Full year Q4 2006 YOY 2006 YOY 760 -12% Total operating profit (m) 3 103 +30% (17) - Finance costs (m) (43) -34% 12.0 -15% Earnings per share (pence) 47.4 +24% - - ROACE (%) 26.0…
  22. The Integrated Gas Major Presentation – BG Group – slide 22
    2006 results Capex 2007-09 On stream On stream Total 2007-09 2010-12 billion billion billion 2006 Plan 4.8 1.5 6.3 Enhanced programme 0.3 0.3 0.6 Inflation 0.4 0.2 0.6 Phasing (0.2) 0.2 - 2007 Plan 5.3 2.2 7.5 Excludes…
  23. The Integrated Gas Major Presentation – BG Group – slide 23
    2006 results Capital structure Capex for 2007 2.2 bn Acquisitions to be completed 0.5bn Substantial growth in opportunities Financial flexibility valuable Share buy-back 750m Balancing growth and returns 24
  24. The Integrated Gas Major Presentation – BG Group – slide 24
    2006 results Summary Outstanding organic growth and cost discipline Outlook for continued strong performance Increasing investment in long-term, profitable growth Dividend up 20% Share buy-back 750m Delivering exceptional value…
  25. The Integrated Gas Major Presentation – BG Group – slide 25
    BG Group Portfolio for growth
  26. The Integrated Gas Major Presentation – BG Group – slide 26
    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 2007 reference conditions…
  27. The Integrated Gas Major Presentation – BG Group – slide 27
    Portfolio for growth North Sea: Hub development Judy/Joanne hub Pelikan N Invincible And Record Judy throughput Nov 2006 Jackdaw Pelikan S Drilling success in 2005/6 J10 Gassled Courageous Magpie Five E&A wells including…
  28. The Integrated Gas Major Presentation – BG Group – slide 28
    Portfolio for growth North Sea: Jasmine Julia salt 2007 E&A well BG equity 30.5% Jasmine 30/6a-6 Ja East Prospect Gross reserves 100-176-275 mmboe Jasmine sm in e discovery well E&A well 2007 30/6a-6z Joanne salt…
  29. The Integrated Gas Major Presentation – BG Group – slide 29
    Portfolio for growth North Sea: Jackdaw UK Norway 30/2a Lower N1 Appraisal well 30/3a 30/2a-6 Lower BG expected to be operator Courageous Jackdaw BG equity 30/2a 35%, 30/2c 36% Gross reserves 20-140-250 mmboe Jade 30/2c…
  30. The Integrated Gas Major Presentation – BG Group – slide 30
    Portfolio for growth North Sea: Production BG net production 000s boepd 200 Production up 21% 2007-12 Increases from existing assets 150 Jasmine onstream 2010 100 Jackdaw onstream 2012 50 Other planned discoveries 2010+ Plateau…
  31. The Integrated Gas Major Presentation – BG Group – slide 31
    Portfolio for growth Karachaganak Rail Orenburg 0 mtpa 5.1 mtpa 8 bcm BG capital spend over 2bn 16 bcm Samara Orenburg Progress in 2006 on exports 4 mtpa 2 mtpa 3.3 mtpa 4 mtpa Atyrau/Samara started Gas re- Field injection…
  32. The Integrated Gas Major Presentation – BG Group – slide 32
    Portfolio for growth Karachaganak: Successful field enhancement Facilities de-bottlenecking achieved Western export up 10% to 7.7 mtpa Phase IIM - progressing Enhancing liquids plateau Multi-lateral Well 5887 16 wells, 480m gross…
  33. The Integrated Gas Major Presentation – BG Group – slide 33
    Portfolio for growth Karachaganak: 4th stabilisation train project Expanded project sanctioned 2006 Train capacity 2.6 mtpa Includes rail capacity 3.8 mtpa Includes 13 wells Western export up to 10.3 mtpa Gross capex 1bn Gross…
  34. The Integrated Gas Major Presentation – BG Group – slide 34
    Portfolio for growth Karachaganak: Phase III & full potential BG net production 000s boepd 250 Expanded Phase III plans 200 Liquids sales up to 16.5 mtpa 150 Gas sales 16 bcma Up to 120 additional wells 100 Increased gas injection…
  35. The Integrated Gas Major Presentation – BG Group – slide 35
    Portfolio for growth Tunisia: Miskar Miskar North Mago Supplies ca 50% of Tunisias gas Well Miskar Miskar Infill Drilling Gross reserves 247 mmboe Central Well Six infill wells Gas condensate field Prospect Extension Lead…
  36. The Integrated Gas Major Presentation – BG Group – slide 36
    Portfolio for growth Tunisia: Hasdrubal BG equity 50% Gross reserves 78 mmboe Includes LPG processing facility On stream 2009 BG net production 000s boepd Further near field potential 15 Near field potential Hasdrubal Deep &…
  37. The Integrated Gas Major Presentation – BG Group – slide 37
    Portfolio for growth India Panna/Mukta & Tapti Planned production up 60% 2006-09 Incremental projects Existing T&D assets Expansion into adjoining areas Growth from new supplies 2010+ First LNG cargos delivered Operating…
  38. The Integrated Gas Major Presentation – BG Group – slide 38
    Portfolio for growth India: Panna/Mukta expansion Panna schematic Mukta schematic Panna Gross HIIP of 1700 mmboe Successful expansion underway = Platform Oil recovery to date 105 mmbbl (9%) Existing Expansion Existing Plan Full…
  39. The Integrated Gas Major Presentation – BG Group – slide 39
    Portfolio for growth Egypt Peak production 2600 mmscfd Targeting increased production Domestic demand 2008-12 ELNG de-bottlenecking (5-10%) Incremental sales of 500-700 bcf WDDM Securing additional WDDM leases El Manzala El…
  40. The Integrated Gas Major Presentation – BG Group – slide 40
    Portfolio for growth Nigeria: OKLNG 50km OKLNG Four train project, 5.5 mtpa each Nigeria Plant buys gas sells LNG Initial development of two trains OPL 332 FEED largely completed BG equity 13.5% Sanction 2007 OPL 286-DO BG…
  41. The Integrated Gas Major Presentation – BG Group – slide 41
    Portfolio for growth Nigeria: Upstream OPL 286-DO Bonga OPL 286-DO (BG 66% & operator) 15 km Analogous plays to Bonga field Beribe Ago Boi ca 100 mmboe gross reserves Boi Apaapa ca 800 mmboe unrisked potential Discovery Lead…
  42. The Integrated Gas Major Presentation – BG Group – slide 42
    Portfolio for growth Trinidad Dolphin Deep & ALNG 4 onstream New Dolphin domestic gas sales Start January 2009, 220 mmscfd Term up to 15 years 4 new infill wells, 2 having deeper exploration targets Infrastructure led…
  43. The Integrated Gas Major Presentation – BG Group – slide 43
    Portfolio for growth Global LNG: Industry context Rapid industry growth Demand outpacing supply Supply project delays Shipping & regasification growing rapidly Rising industry costs Developing global gas market 44
  44. The Integrated Gas Major Presentation – BG Group – slide 44
    Portfolio for growth Global LNG: Supply & optimisation UK Belgium France S. Korea USA Italy Spain Japan India Taiwan Mexico Egypt Trinidad Nigeria In 2006, BG supplied 18 cargoes*, or 25%** of all Atlantic Basin volumes,…
  45. The Integrated Gas Major Presentation – BG Group – slide 45
    Portfolio for growth Global LNG: A unique competitive position Flexible LNG Multiple markets Long term supply with destination Delivery to 12 countries in 2006 flexibility Flexible US backstop People and skills Proven delivery…
  46. The Integrated Gas Major Presentation – BG Group – slide 46
    Portfolio for growth Global LNG: Supply BG supply (mtpa) CAGR 16-20% 2005-12 20 Supply subject to SPA* NLNG T7 CAGR 21-24% 2005-09 Brass LNG OKLNG equity lifting 10 Other opportunities Supply subject to SPA Spot (potential…
  47. The Integrated Gas Major Presentation – BG Group – slide 47
    Portfolio for growth Global LNG: Growing a global business UK USA Future purchases Italy Asia and other opportunities Egypt Trinidad PNG Nigeria EG Term sales: 1 to 2 mtpa Chile Current and future equity positions…
  48. The Integrated Gas Major Presentation – BG Group – slide 48
    Portfolio for growth Global LNG: Key messages Global marketing delivering superior returns Flexible portfolio is a continuing advantage Long term supplies on stream and ramping up Future supplies post 2010 firming up Building a…
  49. The Integrated Gas Major Presentation – BG Group – slide 49
    Portfolio for growth Integrated US gas strategy Supply Assets BG Portfolio Assets Customer Assets LNG LNG Natural Gas Transportation NGLs Input Output Options Options Production Storage NGLs Power Power Supply…
  50. The Integrated Gas Major Presentation – BG Group – slide 50
    Portfolio for growth Integrated US gas business Lake Road NSTAR Boston BG Dighton New York Washington DC Atlanta Elba Island Lake Charles Houston Regas Cypress LNG Transport Salt storage Miami Power LNG…
  51. The Integrated Gas Major Presentation – BG Group – slide 51
    Portfolio for growth US power Power part of an integrated gas business Selective market entry Northeast market attractiveness Constrained gas and power supply Liquid and mature market Growing demand Forward capacity market Good…
  52. The Integrated Gas Major Presentation – BG Group – slide 52
    Portfolio for growth E&P: E&A progress Drilling 2006 New licences 2006 Completed 42 wells, 22 successes US (Alaska) UK Canada Norway Key successes Jasmine (UK) Tupi (Brazil) Oman Algeria China WDDM (Egypt) Thailand Nigeria…
  53. The Integrated Gas Major Presentation – BG Group – slide 53
    Portfolio for growth E&P: 2007 E&A preview UK Canada 1 well 10-11 wells 1 well Norway 2 wells 1 well 2 wells Tunisia Alaska Tunisia 1 well 1 well Tunisia 1 well Trinidad Thailand Algeria 1 well 1 well 0-1 well 1 well…
  54. The Integrated Gas Major Presentation – BG Group – slide 54
    Portfolio for growth E&P: Brazil So Francisco Braslia onshore 8 licences, 2 BG operated Santos deep-water 3D seismic 1,400 sq km in 2007 Belo Horizonte 3 E&A wells in 2007 Santos shallow-water Santos shallow-water 3D seismic…
  55. The Integrated Gas Major Presentation – BG Group – slide 55
    Portfolio for growth E&P: Brazil Tupi discovery Tupi discovery (BG 25%) Iracema Tested 300 API oil, 4900 bopd Gross HIIP 1.7 to 10+ billion boe Appraisal in 2007 (Tupi Sul) Evaluating development options Exploration Iracema well…
  56. The Integrated Gas Major Presentation – BG Group – slide 56
    Portfolio for growth E&P: Oman Block 60 : Abu Butabul EPSA for 30 years signed 2006 Exploration area BG 100% One well discovery, tight reservoir Abu Butabul discovery Gross GIIP 2-11-17 tcf Iran 3D seismic, 1,000 sq km in 2007…
  57. The Integrated Gas Major Presentation – BG Group – slide 57
    Portfolio for growth E&P: Norway Barents Sea Fifth largest acreage holder Mid-Norway 23 licences, 14 operated 19th Licence round (2006) Tromso 8 new awards, 5 operated APA 2006 Licence round 2 new awards, 1 operated Trondheim…
  58. The Integrated Gas Major Presentation – BG Group – slide 58
    Portfolio for growth E&P: Norway Bream-Norwegian Southern North Sea Awarded January 2007 2300 BG equity 40% & operator 17/12-3 Gross reserves 46-83-93 mmboe 2240 17/12-1/1R Bream appraisal well 2008 Pilot Hole…
  59. The Integrated Gas Major Presentation – BG Group – slide 59
    Portfolio for growth E&P: Algeria Spain BG equity 36.7% & operator Algiers Hassi Ba Hamou field Morocco Algeria Tunisia 3 earlier wells drilled by Sonatrach Discovery 570 bcf gross reserves Libya 3D seismic Q1 2007 Hassi Ba…
  60. The Integrated Gas Major Presentation – BG Group – slide 60
    Portfolio for growth E&P: US (Alaska) Eastern North Pt. Barrow Slope Prudhoe 1,000 sq km Pt. Eastern North Slope (BG 40%) Bay Thomson Oil play North Slope Jacobs Ladder well 2007 Jacobs Foothills Ladder Well 9,200 sq km…
  61. The Integrated Gas Major Presentation – BG Group – slide 61
    Portfolio for growth E&P: China Guangzhou China Hong Kong Husky Three blocks awarded 2006 Discovery Pearl River Mouth Basin BG 100% equity 41/06 Deepwater frontier basins 53/16 100 km 64/11 Qiongdongnan Basin 25,800 sq km…
  62. The Integrated Gas Major Presentation – BG Group – slide 62
    Portfolio for growth E&P: Reserves and resources CAGR 10% 2006 Reserves/ mmboe 8,017 Production* 8000 7,071 6,595 2,713 37 years 6000 2,440 2,109 1,772 24 years 4000 869 1,211 1,470 1,236 1,383 16 years 2000 2,147 2,184 2,149…
  63. The Integrated Gas Major Presentation – BG Group – slide 63
    Portfolio for growth E&P: Production BG net production 000s boepd CAGR 6-10% 2005-12 1000 800 CAGR 5-7% 2006-09 612 600 Medium term 2007-09 Long term 2010-12 Key projects: Key opportunities: 400 Buzzard Karachaganak Gaza…
  64. The Integrated Gas Major Presentation – BG Group – slide 64
    Portfolio for growth Key projects & opportunities to 2012 Key projects on stream 2007-09 2007 2008 2009 Buzzard WDDM Phase IV Karachaganak 4th Train Equatorial Guinea LNG supply Lake Charles (fuel savings/NGLs) Dolphin expansion…
  65. The Integrated Gas Major Presentation – BG Group – slide 65
    Portfolio for growth Key opportunities beyond 2012 Alaska exploration UK exploration Norway exploration Canada exploration Egypt exploration Karachaganak Libya exploration full potential Algeria ELNG T3 Elba Island expansion…
  66. The Integrated Gas Major Presentation – BG Group – slide 66
    BG Group Conclusions
  67. The Integrated Gas Major Presentation – BG Group – slide 67
    The Integrated Gas Major Framework for growth EPS Based on firm projects In BG plans** Energy growth* Zero growth Key growth projects Karachaganak Buzzard US LNG Trinidad E&P/ LNG Hasdrubal 2006 2009 Schematic…
  68. The Integrated Gas Major Presentation – BG Group – slide 68
    The Integrated Gas Major Key messages: 2006 Delivery Earnings per share up 24% Strong volume growth: E&P +19% & LNG +63% LNG operating profit, up 94% Dividend increased by 20% Share buy-back 750m Delivering exceptional value to…
  69. The Integrated Gas Major Presentation – BG Group – slide 69
    The Integrated Gas Major Key messages: Future growth Outstanding earnings outlook to 2009 Distinctive long-life base set of assets improved Significantly enhanced set of projects to 2012+ E&P resources up ca 1bn boe, over 13%…
  70. The Integrated Gas Major Presentation – BG Group – slide 70
    71
  71. The Integrated Gas Major Presentation – BG Group – slide 71
    BG Group Appendix
  72. The Integrated Gas Major Presentation – BG Group – slide 72
    Legal Notice Cautionary Note to US investors The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by…
  73. The Integrated Gas Major Presentation – BG Group – slide 73
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US40/bbl US Henry Hub 6/mmBtu US/UK exchange rates of 1.80:1 UKCS upstream tax 40% 2003-05; 50% 2006 forward Prepared under International Financial Reporting Standards…
  74. The Integrated Gas Major Presentation – BG Group – slide 74
    Appendix Glossary Increase or (decrease) GAAP Generally Accepted Accounting Principles United States dollar GIIP Gas Initially In Place UK pounds sterling HIIP Hydrocarbons initially in place m Million UK pounds sterling HPHT High…

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