PNG The Renaissance is Coming Major changes are taking place in the petroleum sector in PNG Change of oil field operator Refocus on development activity Reinvigoration of investment in exploration Step change in cost structure and…
PNG The Renaissance is Coming Oil Search is undergoing unprecedented growth Record production with growth Record profitability Strong Balance Sheet A key catalyst for change
The Petroleum Sector The Oil Search Role Long history of exploration in PNG Oil Search in 1992 Immaterial interests Reliant on major oil companies 7% of business in PNG Substantial cashflow for first time Review of Company…
The Petroleum Sector The Oil Search Role Growth through discovery and acquisition in mid to late nineties Acquisition of BPs interests Larger interests but dependant on investment profile of majors Merger with Orogen Minerals…
The Petroleum Sector The Oil Search Role Major strategic review in 2002 identified areas of value: THE PRIZE It is possible to almost double the value of the PNG Oil and Gas Business in five years. Requires: Commercialisation of some…
The Petroleum Sector The Oil Search Role Value must come predominantly from existing discovered resources Existing oil and gas fields Fundamental changes to the way we do business Sustained investment from a lower cost base…
The Petroleum Sector The Oil Search Role Oil Search now owns 55% of the oil business in PNG and 40% of the gas reserves 250 staff Strong balance sheet Unprecedented influence on the direction of the Petroleum Sector in PNG The CT…
Oil Search Operations 2003
Highlights - Financial Reported profit after tax was a record US36.5m (A59.5m), 104% higher than in 2002, reflecting a full 6 months contribution from the Orogen assets and high oil and gas prices Earnings per share increased by 79% to…
Highlights - Operational Excellent operational performance - production of oil and gas up 21%, and gold production from Porgera up 130% Election as new Operator of PNG oil fields highly significant, providing lever for future growth.…
Production Summary Six months Gross Net Gross Net to June productio productio productio productio n 2002 n 2002 n 2003 n 2003 bopd mmbbl bopd mmbbl Kutubu 21,907 1.554 20,674 1.967 Gobe Main 5,662 0.453 5,015 0.520 SE Gobe 10,310…
Average Monthly Rate (BOPD) Average Monthly Rate (BOPD) Ja n- 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 00 Ja n- 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 M 00 ay -0 M 0…
NW Moran-1
Growth Opportunities NW Moran & SE Mananda Elevation (m) Kondari River NW Moran-1 Moran 4, 6, 9 Mananda-4 Moran 8 Moran 1, 2 Moran 5, 7 SE Mananda-2 SE Mananda-1 Moran 3 SE Moran AGOGO PRODUCTION FACILITIES…
NW Moran Forward Program Updip Downdip S - SW sidetrack sidetrack N - NE NW M oran Toro ST3 Potential down-dip Toro oil Digim ODT 1902mss u OWC 1962mss Updip extent of reservoirs and volume better constrained after…
Development - Saunders Planned Extended Well Test (EPT) has been delayed Pipeline integrity being addressed Existing line likely to be replaced with permanent 6 flow line Well expected to come into production October 2003 at between…
Development SE Mananda Technical and engineering studies show SE Mananda development is potentially commercial Conceptual development plan is being completed and will be presented to JV by end 2003 Exploration/appraisal program of…
Development - Gas Highlands Gas Project Technical work indicates a liquids stripping and gas cycling project can be commercially attractive and may provide complementary or additional gas related development for PNG From work to date,…
Development - Gas Hides Cycling Project New HOA consolidates interests of those parties who have a commitment to progress work on gas exports to Australia. Oil Search's purchase of CTs assets allows for additional streamlining of the…
Development - Gas Other Options Efforts to commercialise gas within PNG recognise the need for developing an environment conducive to attract industry and to utilise the natural resources in PNG in- country. Oil Search is committed and…
What does Operatorship mean to us Able to provide leadership in investment Lower cost structure and extended field life Opportunities to increase profitability and deliver a range of value initiatives 2004 program and budget being…
Value Optimisation Budgets and work plans to be submitted to various joint ventures in September/October 2003 Key focus is on drilling cost reductions and production maximisation Range of initiatives being actively addressed
Value Optimisation DRILLING SE MANANDA FIELD OPERATIONS PRODUCTIONS GAS COSTS DEVELOPMENT & LOGISTICS ENHANCEMENTS COMMERCIALISATION Workforce Enhance Field Export Pipeline Rig Optimisation Moran Optimisation Optimisation…
Outlook Production short term Decline rates at Kutubu and Gobe partially arrested by actions of asset teams Moran Central ramp up to continue as reservoir re- pressures and Moran-9 brought into full production, likely drilling of…
Outlook Production medium/long term If Saunders EPT performs as expected, further development planned Moran optimisation SE Mananda development NW Moran tie-in Hides Cycle project Export Pipeline Project and in country gas…
Outlook Exploration SE Moran, Kapul Well planning for 2004 part of Value Optimisation Team brief New Venture activity measured approach Exploration budget for 2003: US45 million
Outlook Corporate Chevron Niugini purchase completes October 2003 Re-financing expected to complete October 2003 Sale of minerals assets expected by year end Share buy-back on-going, once cash inflow/outflow stabilises…
The New Oil Search By end 2003 PNG Company will control 70% of a major resource business in this country Will have unprecedented control and influence to ensure initiatives to optimise value are vigorously pursued Value potential…
Wrap Up Acquisitions and new developments delivering production growth Excellent financial performance, impacted by high commodity prices Strong balance sheet low gearing Operatorship gives unprecedented leadership to control investment,…
OIL SEARCH LIMITED Please visit our new website www.oilsearch.com
Loading...
