Oil Search Profile Established in Papua New Guinea (PNG) in 1929 Operates all of PNGs producing oil and gas fields. Current gross production 34,000 boepd, net share 19,000 boepd At December 2010, proven reserves were 337 mmboe, proven…
Oil Search Locations Tunis Iraq Tunisia Sulaymaniyah Dubai Sanaa Yemen Papua New Guinea Kutubu Ridge Camp Port Moresby (Head Office) Australia Brisbane Sydney 3
Key Oil and Gas Fields, PNG LEGEND PPL260 Pnyang Madang Porgora Gold Mine Wabag Oil Field PRL3 Hides PPL260 Proposed Juha Juha Gas Field PDL8 PRL11 Facility PDL9 PRL11 PPL239 PDL1 Mt. Hagan Prospect Moran Kundiawa 6S…
OSH Strategies to Create Value Optimise current oil and gas production: Through improved efficiencies and pursuit of near field opportunities Maximise value of PNG LNG Project (T1 & T2): By utilising in-country knowledge to assist…
Safety Performance Total Recordable Injury Frequency Rate of 1.47 in 1H11 12 10.6 10.7 9.8 10 Australian Companies (APPEA) TRI / 1,000,000 Hours 9.4 9.1 9.3 8 7.8 8.2 7.3 6.8 6.0 7.0 6.3 5.7 6.0 6 5.8 4.9 4.7 5.2…
Share Price Performance Aug 2011 9.00 Share price (rebased to OSH) 8.00 7.00 Oil 6.00 Search 5.00 WTI oil 4.00 Santos Woodside ASX 100 3.00 2.00 1.00 0.00 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10…
Treasury Update - 30 June 2011 US1.23 billion in cash at end June Cash invested and actively managed with highly rated bank counterparties US275.5 million available from term revolving facility, nil drawn down. Facility doesnt expire…
Liquidity Liquidity (cash plus undrawn bank debt) USmm 0 2011 2014 Outlook updated for first half cash generation, investment spend and forward prices Liquidity (including escrowed cash) at the end of 1H 2011 1.5 billion…
PNG LNG Project Overview Hides Wabag Juha Wells Facility EPC4 Hides Gas Conditioning Mt. Hagan 6S Plant Kundiawa C1 HGCP Mendi Goroka EPC5B Komo Kutubu CPF Airfield Gobe PF Lae 7S C1 South LEGEND complete Oil Field…
PNG LNG Project Overview 6.6 MTPA, 2 train development, operated by ExxonMobil Over its 30-year life, PNG LNG expected to produce over 9 tcf of gas and 200+ million barrels of associated liquids Initial Equities: ExxonMobil - 33.2% Oil…
PNG LNG Project Overview Main EPC contractors: LNG Plant: Chiyoda/JGC Offshore Pipeline Saipem Hides Gas Plant CBI/Clough JV Onshore Pipeline Spiecapag Infrastructure McConnell Dowell/CCC JV Early Works Clough/Curtain JV…
Milestones achieved in 1H 2011 Ground-breaking and pouring of first foundations at the LNG plant site Commencement of welding and burial of onshore pipeline, continued clearing and stringing of pipe along the route Construction of…
Latest PNG LNG news Completed fabrication of new Single Point Mooring (SPM) for Kumul loading terminal Drill rig mobilisation Working with new Government to ensure continued alignment and delivery of obligations Good progress towards…
Focus items for 2H 2011 Community engagement and downtime management Wellpad and Hides spine road development CPF shut down at Kutubu and commencement of work on Kumul rejuvenation Onshore pipeline installation Commencement of offshore…
Timetable Continued early works Complete AG Detailed design Continue onshore Order long leads and pipe lay place purchase orders Complete offshore Open supply routes pipe lay First Gas from Contractor mobilisation Start Hides…
PNG LNG Project Onshore Pipeline Construction Kopi Scraper Station First weld Pipeline stringing, onshore pipeline Completed Mubi River crossing 18
PNG LNG Plant Site July 2011 February 2011 19
Gas Growth and Exploration Key strategic priority for Oil Search is to grow gas business in PNG Pursuing two pronged strategy: PNG LNG Expansion Gulf Area LNG PNG near field oil exploration High graded exploration outside…
PNG LNG Expansion Integrated exploration and appraisal drilling programme in the Highlands Results by mid/late 2012 Upside in Associated Gas fields: Detailed evaluation ongoing by Oil Search Targeting alignment with PNG LNG…
PNG LNG Expansion Pnyang PPL260 Madang Hides Wabag LEGEND PRL3 PPL260 Benaria/Huria (PRL11) Oil Field Juha PDL9 PDL8 PRL11 PPL239 PDL1 Mt. Hagan Gas Field APPL250 Kundiawa 6S Kiunga PRL02 PDL6 APPL249 Prospect PDL7…
PNG LNG Expansion Pnyang (PRL 3) ExxonMobil 49%, Oil Search 38.5%, JX Holdings 12.5% Appraisal well scheduled for 4Q11 Targeting southern fault block Aim is to move 3C to 2C and increase 1C resource Potential 2C of 2 tcf 100km…
PNG LNG Expansion 10km PRL 11 (formerly Huria): Oil Search 52.5%, ExxonMobil affiliates 47.5% Exploration well scheduled for 1Q12 Series of prospects: Reasonable seismic but structural uncertainty remains PRL11 Hides…
Gulf Area LNG Opportunity Multi-licence, multi play type, multi PPL260 PPL339 Gobe well opportunity being developed 338 339 Large, modern 3D seismic dataset 339 7S acquired to unlock potential of Gulf 338 Elk/Antelope 338…
Gulf Area LNG Opportunity Prospectivity: Targeting 4Q for initial assessment of prospectivity across all licences Final views by year end Partnering: Discussions initiated and ongoing with potential farm-in partners Drilling:…
Analogue Comparison Kokomo Prospect - Gulf of Papua vs. Sequoia Field - Nile Delta Channel Sands 6 km Kokomo Prospect Gulf of Papua, PNG Oil Search High Amplitude Anomalies Sequoia Field Sediment flow-direction Nile…
Kokomo Prospect Reservoir Lower Channel L Amplitude H 6 km Map view of horizon slice 29
Kurdistan - Taza PSC PSC signed after Jambur Oil Field exercising Option Agreement Kor Mor Oil Search entry as Gas Field Operator in extremely active Kurdistan Region of Iraq Talaw Prospect Very prospective location adjacent to three…
Tunisia 2010 seismic evaluation complete Large structures mapped Proven plays present and new deep gas play developed 10km Prime prospect in Tajerouine permit has potential for 100 mmstb oil and 400 bcf gas Fiscal regime favourable…
Oil Search Production Outlook Net Production (mmboe) 25 MENA Hides GTE SE Mananda 20 SE Gobe Gobe Main Moran Kutubu 15 10 8.60 8.12 7.66 6.2-6.7 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 32
1H11 Performance World class safety performance Production Solid 1H production at 3.56 mmboe Full year estimate remains consistent with guidance (6.2 6.7 mmboe) AGRP shutdown deferred from May to August following further detailed…
2011 Production Outlook Underlying production from oil fields generally consistent with expectations 2H11 production impacted by: Two week shutdown for tie-in of Associated Gas facilities (underway) Natural decline Repairs to HP…
Near Field Exploration Detailed review of near field exploration potential in and around existing producing fields as part of 2010 strategic review More than 25 opportunities currently identified Potential: 125 mmboe net (approximately…
Near Field Exploration Deeper targets e.g. Koi-Iange Footwalls Forelimbs Focused on: Deeper Koi-Iange play: Play extensions: Potentially underlies all producing Based on detailed remapping and reservoirs 2011 seismic…
2H11 Drilling Activity Hedinia Forelimb Agogo Forelimb Hedinia 10 is targeting ADT2 lookalike forelimb structure under producing Hedinia field within Kutubu Agogo 6 is follow-up to ADT2 targeting Agogo Toro forelimb and…
2011/12 Development & Near- Field Appraisal Drilling Activity PPL260 PRL02 Hides PPL239 PDL1 PRL11 Juha Angore PRL 12 6S Moran: PRL12 PDL6 PDL5 2012 : 1-2 wells PPL233 APPL350 PPL219 PPL233 Mananda 5 Kutubu: SE Mananda…
2H11 Focus Areas Maintain OSHs industry-leading safety performance in high activity environment Strong commitment to cost effectiveness PNG LNG Project commitments driving operational developments: Deliver the Associated Gas…
Mananda 5 Discovery 25 mmboe discovery, 50:50 oil:gas Confirmed oil in Toro A, B & C Ambiguous in Imburu & Digimu Location application lodged with DPE 610'S PPL 233 APPL 350 Mananda 2SMananda 3X k Mananda 3XST1…
PNG Operating Environment PNG has built enviable investment record of fiscal stability in resources sector over past 15 years Unprecedented investment now taking place in oil, gas and mining, encouraged by attractive fiscal policy and…
PNG Operating Environment Rapidly changing economic and social landscape Changes in traditional tribal culture Increased expectations and opportunities Education and communications Focus on improving benefits distribution system,…
Managing Operating Risk Oil Search has increased its focus on managing in- country issues Seen as key way to mitigate operating risk Expanded Sustainability Group is focusing on: Government/regulatory Promoting transparency Sovereign…
Drilling Outlook Embarking on one of the largest drilling programme ever undertaken, starting 4Q11 continuing through 2012, into 2013 Multi-TCF risked potential for gas and several hundred millions of barrels of oil potential Appraisal…
Drilling Programme Pnyang PPL260 Madang Hides Wabag LEGEND PRL3 PPL260 Benaria/Huria (PRL11) Juha Oil Field PDL8 PDL9 PRL11 PPL239 PDL1 Mt. Hagan Gas Field Moran APPL250 Kundiawa 6S Kiunga PRL02 PDL6 APPL249 Prospect…
Summary Delivery of PNG LNG underway: Robust project Outside crowded Australian LNG space, conventional onshore gas, limited technical risks High quality Operator, making good progress towards first sales in 2014 Largest ever…
Appendix 47
2011 Full Year Guidance Summary Production: 6.2 6.7 mmboe Similar performance in 2012 and 2013 Operating costs US19 - 21/boe (incl corporate costs) Impacted by: Lower production volumes Major workover programme to maximise oil…
2011 Capital Outlook Update USm 1H 11 2H 11 2011 Investing : Exploration inc gas growth 54 110-130 160-180 PNG LNG 595 600-800 1,200-1,400 Production 57 70-90 130-150 Corporate (inc rigs) 3 7 10 Financing : Dividends 0* 0*…
Other Key Players in PNG Talisman Equity Participation NGE & Interoil Equity Participation NGE Juha Juha 6S Hides & 6S Hides & Interoil Angore Angore Kutubu & Agogo Kutubu & Agogo Gobe Gobe 8S 8S 100km 100km Port…
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