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The Integrated Gas Major – BG Group

BG Group · Feb 5, 2010 · 69 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 2010
  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 An exciting future Entering a new decade of high growth Underpinned by strengthened & rebalanced portfolio Key projects significantly & rapidly de-risked Already own reserves & resources to meet growth…
  6. The Integrated Gas Major – BG Group – slide 6
    The Integrated Gas Major Key messages E&P: upper end 6-8% range to 2020, LNG: 20 mtpa for 2015 Brazil: in production, 400,000 boepd net by 2020 Queensland Curtis LNG: 2010 sanction EXCO alliance: 100,000 boepd net by 2015 LNG…
  7. The Integrated Gas Major – BG Group – slide 7
    2009 results Ashley Almanza Chief Financial Officer
  8. The Integrated Gas Major – BG Group – slide 8
    2009 results Group highlights Solid profit and cash flow EPS down 27% despite weaker commodity prices Cash flow from operations of 4.9 billion Performance underpinned by integrated model Gearing 17% Dividend up 10% Resilient…
  9. The Integrated Gas Major – BG Group – slide 9
    2009 results Group performance Q4 Full Year Full Year 2009 2009 YOY Brent (/bbl) -37% Henry Hub (/mmbtu) -53% Group Total Operating Profit (m) 1 108 4 211 -21% EPS (pence) 17.6 67.3 -27% E&P: Volume growth full year +4% LNG:…
  10. The Integrated Gas Major – BG Group – slide 10
    2009 results E&P total operating profit Q4 Full Year Full Year 2009 2009 YOY Production Volumes (mmboe) 61.9 234.9 +4% Operating Profit Pre Exploration 751m 2 687m -32% Exploration Expense (172m) (600m) +33% Total Operating…
  11. The Integrated Gas Major – BG Group – slide 11
    2009 results Proved reserves replacement BG Groups reserves replacement 3 year reserves replacement 3 year total 166% proved RRR 1 year total 160% proved RRR BG 2007-2009 (1) BG 2007-2009 (2) Peer 2006-2008 3 year organic…
  12. The Integrated Gas Major – BG Group – slide 12
    2009 results E&P benchmarking 3 year unit F&D cost trend (/boe) 60 50 40 30 20 10 0 2003-05 2004-06 2005-07 2006-08 2007-09 BG Group Top quartile Combined companies Bottom quartile Source: Evaluate Energy 2009, BG…
  13. The Integrated Gas Major – BG Group – slide 13
    2009 results E&P benchmarking Annual unit opex cost trend (/boe) 16 12 8 4 0 2004 2005 2006 2007 2008 2009 BG Group Top quartile Combined companies Bottom quartile Source: Evaluate Energy 2009, BG Group Peer Group…
  14. The Integrated Gas Major – BG Group – slide 14
    2009 results LNG total operating profit Q4 Full Year Full Year 2009 2009 YOY Shipping & Marketing 332m 1 434m -6% Liquefaction 51m 211m +46% Business Development (25m) (94m) +12% Total Operating Profit 358m 1 551m -2%…
  15. The Integrated Gas Major – BG Group – slide 15
    2009 results T&D and Power total operating profit Q4 Full Year Full Year 2009 2009 YOY T&D Comgs 105m 381m +231% Other 11m 45m - T&D Total Operating Profit 116m 426m +166% Comgs RCA* 47m 162m *RCA (Comgs Regulatory Current…
  16. The Integrated Gas Major – BG Group – slide 16
    Outlook
  17. The Integrated Gas Major – BG Group – slide 17
    Outlook E&P production BG Group net production (000s boepd) 1600 1200 800 400 2009 2015 2020 At 2010 reference conditions (see appendix) Positioned for growth 17
  18. The Integrated Gas Major – BG Group – slide 18
    Outlook LNG LNG total operating profit ( million) 3000 1.8bn - 2.0bn per annum 2000 1000 0 2007 2008 2009 2010 2011 2012 Continuing operations excluding disposals, certain re-measurements and impairments Total…
  19. The Integrated Gas Major – BG Group – slide 19
    Outlook LNG segment profitability: Value secured LNG Segment Profit 100% Positioned to secure value Locked-in LNG sales 80% Stable liquefaction profile 60% Some flexibility retained 40% 20% 0% 2010 2011 2012 Fixed &…
  20. The Integrated Gas Major – BG Group – slide 20
    Outlook Capital investment 2009 Total capex of 5.2 bn Acquisition of Pure and EXCO alliance 1.1 bn 2010-2012 8 bn per year average 7.5 bn in 2010 Brazil and Australia focus Investment underpinning the next decade of growth…
  21. The Integrated Gas Major – BG Group – slide 21
    Outlook Annual capital expenditure guidance Annual organic capital expenditure 2010-12 ( bn) 0.4 (0.3) 0.3 8.0 0.6 7.0 6.0 Rebased 09 EXCO Australia Kazakhstan Other 2010 Guidance guidance* * 6.0bn 2009 guidance; 0.4bn…
  22. The Integrated Gas Major – BG Group – slide 22
    Outlook Capital structure and dividend Strongly funded Gearing 17% Dividend increased to 12.35 pence, up 10% Dividend growth in line with long term underlying earnings Strongly funded 22
  23. The Integrated Gas Major – BG Group – slide 23
    Outlook Summary Solid profits and cash flow Strong E&P growth from 2011 LNG guidance extended Strong financial position Dividend up 10% Delivering value to shareholders 23
  24. The Integrated Gas Major – BG Group – slide 24
    Strategy Frank Chapman Chief Executive
  25. The Integrated Gas Major – BG Group – slide 25
    Strategy BG Group performance BG Group net production (000s boepd) 1600 CAGR 10% 1997-2020 1.6 million boepd CAGR 12% 1997-2009 1.2 million 1200 boepd 8% 6% 800 400 0 1997 2003 2009 2015 2020 Future production…
  26. The Integrated Gas Major – BG Group – slide 26
    Strategy BG Group performance Contracted LNG supply (mtpa) 20 CAGR 37% 2003-2009 15 10 5 0 2003 2006 2009 2015 Goal of 20 mtpa by 2015 26
  27. The Integrated Gas Major – BG Group – slide 27
    Strategy BG Group performance Total operating profit ( million) 6000 CAGR 31% 1997-2009 5000 4,211 4000 3,103 3000 2000 1,287 1000 688 160 0 1997 2000 2003 2006 2009 Continuing operations excluding disposals, certain…
  28. The Integrated Gas Major – BG Group – slide 28
  29. The Integrated Gas Major – BG Group – slide 29
    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…
  30. The Integrated Gas Major – BG Group – slide 30
    Strategy Business context: Markets Economic recovery underway Recovery to rebalance market Medium term: gas demand growth returns Gas: a component of lower carbon future BG Group well positioned 30
  31. The Integrated Gas Major – BG Group – slide 31
    Global portfolio
  32. The Integrated Gas Major – BG Group – slide 32
    Global portfolio Global markets supplied by BG Group Canada Russia UK Belgium France Italy Kazakhstan Spain Greece USA Korea Portugal Turkey China Kuwait Japan Tunisia Puerto Rico Taiwan Mexico Trinidad & Egypt Thailand…
  33. The Integrated Gas Major – BG Group – slide 33
    Global portfolio Portfolio development UK Kazakhstan USA Tunisia Trinidad & Tobago Egypt India Brazil Australia Core countries Portfolio strengthened and rebalanced 33
  34. The Integrated Gas Major – BG Group – slide 34
    Portfolio for growth Brazil: Santos Basin activity overview Rio de Janeiro Seismic, wells, cores & DSTs BG Group Operated BG Group Non Operated Exploration Wells Appraisal/Development Wells EWT produced 3.5 mmboe gross BG net…
  35. The Integrated Gas Major – BG Group – slide 35
    Portfolio for growth Brazil: Tupi-Iracema EWT Gross reserves & resources 5-8 bn boe Iracema up to 50,000 bopd per well Tupi Sul EWT 20,000 bopd Constrained by facilities Potential for higher recovery factors FPSO conversion…
  36. The Integrated Gas Major – BG Group – slide 36
    Portfolio for growth Brazil: Tupi-Iracema full field development Rio de Janeiro Processing & Up to 10 FPSO modules gathering terminal 200-300 producer and injection wells Existing gas pipeline 145 km Mexilho Optimising drilling…
  37. The Integrated Gas Major – BG Group – slide 37
    Portfolio for growth Brazil: Guar Outstanding potential Up to 50,000 bopd per well Guar-Norte Gross reserves/resources 1.1-2.0 bn boe EWT later in 2010 Guar-Sela 120,000 bopd FPSO: LOI signed Guar-1 First production early…
  38. The Integrated Gas Major – BG Group – slide 38
    Portfolio for growth Brazil: Iara and Carioca Iara Gross reserves & resources 3-4 bn boe New well in 2010, DST in 2011 3D seismic 2010 & 2011 EWT in 2013 Carioca Carioca NE appraisal Q3 2010 Carioca EWT 1st production Q4…
  39. The Integrated Gas Major – BG Group – slide 39
    Portfolio for growth Brazil: Santos Basin gas management Rio de Janeiro Material gas resources Large and developing gas market Existing gas pipeline 145 km BG Group Comgs interests Mexilho Gas pipeline under construction…
  40. The Integrated Gas Major – BG Group – slide 40
    Portfolio for growth Brazil: Production BG Group net production (000s boepd) Play rapidly de-risked 450 Reserves base confidence Excellent productive reservoirs 300 Production today Rising to 400,000 boepd net by 2020 150 0…
  41. The Integrated Gas Major – BG Group – slide 41
    Portfolio for growth LNG: Portfolio UK Italy USA Trinidad & Tobago Egypt Singapore* Nigeria EG Brazil Australia Chile Current and future equity positions Existing liquefaction Future liquefaction Long term purchases…
  42. The Integrated Gas Major – BG Group – slide 42
    Portfolio for growth Australia: Overview Curtis Island, Queensland Environmental Management Precinct Attractive investment setting QCLNG two-train plant Graham Creek Capacity increased to 8.5 mtpa Laird Point First LNG 2014…
  43. The Integrated Gas Major – BG Group – slide 43
    Portfolio for growth Australia: QGC upstream Proposed LNG plant QCLNG fed by low cost CSG resources Curtis Island Gladstone 120,000 sq kms of licences Existing pipeline QCLNG BG discovered reserve/resource 17.3 tcf* proposed…
  44. The Integrated Gas Major – BG Group – slide 44
    Portfolio for growth Australia: QGC progress Upstream 1800 wells by end 2014 300 wells drilled already 6000 wells over life of two-trains 340 km trunk-line Land access agreements Tenders for supply & construction Plant EPC…
  45. The Integrated Gas Major – BG Group – slide 45
    Portfolio for growth Australia: QCLNG cost Upstream: FEED continues Competitive with E&P developments Plant EPC at low end of current unit cost CSG supplied LNG project to be competitive 45
  46. The Integrated Gas Major – BG Group – slide 46
    Portfolio for growth Australia: QGC economics information Drilling 2009 Seismic 2009 P/I Capital Efficiency/Profitability Index* (P/I) for QGC P/I 3 2 1 30 50 70 90 110 Brent Oil Price (/bbl) *Profitability Index is…
  47. The Integrated Gas Major – BG Group – slide 47
    Portfolio for growth Australia: Production BG Group net production (000s boepd) Partner/Other Net plateau production of 225 kboepd* 250 gas supplying QCLNG Domestic production ca 28 kboepd 200 Material upside: Net BG Group 150…
  48. The Integrated Gas Major – BG Group – slide 48
    Portfolio for growth US E&P: BG Group-EXCO alliance Shale gas set to transform US supply High quality assets Competitive cost Skilled & fully aligned partner Midstream interests Access to markets Complements BG US…
  49. The Integrated Gas Major – BG Group – slide 49
    Portfolio for growth US E&P: Haynesville performance Top 20 wells initial production rate (mmcfd) 30 Excellent IP* rates (20-30 mmcfd) 20 Operating 16 rigs in 2010 10 Drilling times halved over first 30 wells 0 Source: EXCO EXCO…
  50. The Integrated Gas Major – BG Group – slide 50
    Portfolio for growth US E&P: BG Group-EXCO alliance growth BG Group net production (000s boepd) Net BG reserves/resources now 3.2 tcf* 125 Acquisition cost now below 0.4/mcf 100 Existing further Existing further potential…
  51. The Integrated Gas Major – BG Group – slide 51
    Portfolio for growth US E&P: BG Group-EXCO alliance economics information Drilling 2009 Seismic 2009 P/I Capital Efficiency/Profitability Index* (P/I) for BG-EXCO alliance P/I 3 2 1 3 5 7 9 Henry Hub Price (/mmbtu)…
  52. The Integrated Gas Major – BG Group – slide 52
    Portfolio for growth Kazakhstan: Karachaganak Total investment almost 10 bn Fourth train due on stream 2011 Total of 10.3 mtpa export specification oil Only 7% of HIIP produced to date Phase III multi-stage approach: Partners…
  53. The Integrated Gas Major – BG Group – slide 53
    Portfolio for growth UK BG Group net production (000s boepd) 200 Everest & Lomond operatorship Further potential Consolidated UK upstream in Aberdeen 150 50 mmboe Net production 56 mmboe in 2009 100 Jasmine on stream 2012 50…
  54. The Integrated Gas Major – BG Group – slide 54
    Portfolio for growth Norway Exploration drilling Discoveries Progressing discoveries Trondheim Pi, Bream & Jordbr Jordbr Jordbr Blabr New play concept Bergen Oslo Well currently drilling on Blabr Bream Further analogous…
  55. The Integrated Gas Major – BG Group – slide 55
    Portfolio for growth E&P: E&A progress Drilling 2009 Seismic 2009 Completed 28 conventional wells, 17 successes Norway Key successes Tupi-Iracema (Brazil) Algeria Guar test (Brazil) Abu Butabul (Oman) Brazil Australia CSG India…
  56. The Integrated Gas Major – BG Group – slide 56
    Portfolio for growth E&P: 2010 E&A preview UK Norway Summary of well completions 1 well 1 well New plays 3 1 well USA Play extenders 4 140 wells Appraisal/near term 11 - 15 production Unconventional wells* ca 440 India 1…
  57. The Integrated Gas Major – BG Group – slide 57
    Portfolio for growth E&P: Reserves and resources CAGR 20% mmboe Reserves & resources/ 14,494 production* 15000 13,126 3,433 62 years 12000 10,046 3,562 9000 8,017 47 years 4,931 7,071 3,356 3,722 2,713 6000 2,440 3,122…
  58. The Integrated Gas Major – BG Group – slide 58
    The Integrated Gas Major E&P: Production BG Group net production (000s boepd) 1.6 million 1600 boepd Exploration 1.2 million 1200 Australia boepd Brazil 800 400 All other countries 0 2010 2015 2020 At 2010…
  59. The Integrated Gas Major – BG Group – slide 59
    The Integrated Gas Major Key messages Resilient 2009 results E&P: upper end 6-8% range to 2020, LNG: 20 mtpa for 2015 Brazil: in production, 400,000 boepd net by 2020 Queensland Curtis LNG: 2010 sanction EXCO alliance: 100,000…
  60. The Integrated Gas Major – BG Group – slide 60
  61. The Integrated Gas Major – BG Group – slide 61
    Appendix
  62. The Integrated Gas Major – BG Group – slide 62
    Appendix Brazil: Santos Basin overview Rio de Janeiro BM-S-11 (Tupi-Iracema) 2009: Iracema, Tupi NE, Tupi-P1, new 3D seismic, EWT 2010: Up to 6 appraisal wells, up to 3 development wells, Tupi NE BG Group Operated EWT, Module 1 1st…
  63. The Integrated Gas Major – BG Group – slide 63
    Appendix Brazil: Comgs Brazils largest gas distributor 2009 gas sales 11.6 mmcmd Over 700,000 customers connected Customer growth 9% pa 2003-09 Potential to grow market New tariff in effect to 2014 Good potential for…
  64. The Integrated Gas Major – BG Group – slide 64
    Appendix India BG BGGroup GroupIndia 0Indiaportfolio portfolio Panna-Mukta & Tapti Gujarat Gas Panna, Mukta, Tapti (BG 30%) Optimising production Panna: Added 1 WHP/ 10 infill wells Planning 1 WHP/ 6-8 infill wells Mukta:…
  65. The Integrated Gas Major – BG Group – slide 65
    Appendix Egypt Project delivery WDDM Phase V WDDM Phase VI / Rosetta unitised area Launched WDDM Phase VII WDDM Phase VIII drilling commenced N Gamasa offshore (BG 100%) Concession awarded Project delivery and continuing…
  66. The Integrated Gas Major – BG Group – slide 66
    Appendix Tunisia Miskar (BG 100%) Four infill wells drilled in 2008/09 Further development potential Hasdrubal (BG 50%) Offshore platform / up to 6 wells On stream end 2009 Gross platform/plant rate: 37,000 boepd Plant…
  67. The Integrated Gas Major – BG Group – slide 67
    Appendix Trinidad & Tobago Deliverability expanding Markets sustained in downturn NCMA Poinsettia drilling continuing ECMA increased domestic sales Block 5c (BG 75%, operator) Additional 45% acquired in 2009 Appraisal in 2011…
  68. The Integrated Gas Major – BG Group – slide 68
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US 70/bbl US Henry Hub 7/mmbtu US/UK exchange rates of 1.7:1 US/AUD exchange rates of 1: A1.35 Prepared under International Financial Reporting Standards All production…
  69. The Integrated Gas Major – BG Group – slide 69
    Appendix Definitions Increase or (decrease) IP Initial Production United States dollar kboepd Thousand barrels of oil equivalent per day UK pounds sterling km Kilometres 000s Thousands LNG Liquefied Natural Gas 2D Two dimensional…

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