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2005 ANNUAL GENERAL MEETING – Oil Search Limited

Oil Search Limited · May 18, 2005 · 59 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. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 1
    OIL SEARCH LIMITED Port Moresby, May 2005
  2. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 2
    Achievements in 2004 Outstanding safety performance across our operations Record level of production Record profit, driven by increased production, high oil prices and lower cost base Committed to the development of NW Moran and SE…
  3. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 3
    Achievements in 2004 Progress on commercialising gas: -PNG Pipeline Project into FEED -Full feasibility study on world scale petrochemical plant Delivered top quartile shareholder returns of 81% in 2004. Best performing oil and gas stock…
  4. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 4
    2004 Highlight Excellent HSES Performance 4.0 3.5 3.4 3.1 LTI / 1,000,000 Hours 3.0 2.6 2.6 2.6 2.5 2.5 2.1 2.2 2.2 2.1 2.0 1.9 1.5 1.2 1.1 1.2 1.2 1.0 0.7 0.5 0.4 0.3 0.2 0 1998 1999 2000 2001 2002 2003…
  5. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 5
    Net Profit After Tax USm US cents 160 16 Net Profit 140 EPS 150.5 14 13.5 120 12 100 10 80 7.7 8 2H 60 90.4 6 5.0 1H 4.5 40 85.7 60.1 4 1.4 47 20 33.1 2 12.1 0 0 2000 2001 2002 2003 2004 = 46% CAGR in net profit…
  6. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 6
    2004 Net Production A Record for the company 35 Nabrajah 30 SE Mananda Hides 25 SE Gobe MBOEPD 20 Gobe Main Moran 15 Kutubu 10 5 0 2000 2001 2002 2003 2004 2005(F) Positive impact of field optimisation initiatives
  7. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 7
    Share Price Comparison 3.5 3.0 OSH ELECTED GAS OPERATOR OF PROJECT 2.5 ASSUMPTION OF OPERATORSHIP PNG OIL FIELDS FEED & ACQUISITION OF CT ASSETS CPS 2.0 CONVERSION Index STRATEGIC 1.5 REVIEW COMPLETED 1.0 0.5…
  8. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 8
    Financial Summary
  9. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 9
    2004 Full Year Performance 2002 2003 2004 Oil Sales (mmbbl) 7.30 9.16 9.39 Realised oil price (US/bbl) 24.87 29.80 41.65 Revenue (USm) 242.2 350.8 19% 417.1 Operating Expenses 81.5 111.7 86.3 EBITDA (USm) 160.7 239.1 38% 330.8 EBIT…
  10. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 10
    Half-on-Half Performance 1st Half 2nd Half 2004 2004 Oil Price (US) 36.18 28% 46.37 Liftings (mmbbls) 4.34 16% 5.05 Revenue (USm) 170.1 45% 247.0 EBITDA (USm) 127.3 60% 203.5 Core Profit (USm) 52.1 82% 94.9 Reported Profit (USm)…
  11. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 11
    2004 Profit Drivers 300 USm 10.3 -51.1 25.4 8.6 200 6.7 -53.7 111.3 7.1 100 150.5 85.7 0 A e x es er es x s lt lt c em Ta & pe u u th ri al al D es es…
  12. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 12
    Operating Expenses 2003 2004 Costs per Barrel USm US/bbl USm US/bbl US Field Costs 9 Corp Corp Costs Costs - Oil Other 51.3 5.60 42.7 4.55 8 1.16 1.10 - Tariffs 10.5 1.15 15.9 1.68 Direct 7 Opex 0.83 Direct 61.8 6.75 58.5 6.23…
  13. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 13
    Operating Cash Flows 400 USm USM 2003 2004 350 -103.9 Receipts 326.1 423.4 300 Payments (92.6) (72.8) 276.7 250 -65.1 Tax Paid (36.8) (69.4) 200 Net Interest (6.4) (5.4) Other 1.0 0.9 150 USM 191.3 276.7 210.4 100 AM…
  14. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 14
    Treasury Review 250 Gearing USm % Cash 200 40 Debt 150 30 Gearing 100 20 50 10 0 2001 2002 2003 2004 US210m in cash at end December, debt at US168m Zero gearing based on net positive cash position at end December US 1…
  15. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 15
    2005 Capital Outlook USM 2004 2005 Actual Outlook Investing : Exploration 71.5 60.0 Development/Plant 42.8 125.0 Gas (including FEED) 9.1 60.0 Financing : Dividends 33.4 33.4* Debt Repayments 32.0 42.0 *2004 final dividend…
  16. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 16
    Operations Review
  17. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 17
    Production Summary PNG oil production in April 2005 was consistently above 52,000 bopd for the first time since Oct 2001 Over the past two years, Oil Search has added 10,000 bopd to Kutubu production levels added 5,000 to 8,000…
  18. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 18
    Average Monthly Oil Rate (stbopd) Ja 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 0 n- Ap 9 9 r- 9 Ju 9 l- O 99 ct - J a 99 n- Ap 0 0 r- 0 Ju 0 l- Saunders Kutubu SE…
  19. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 19
    Kutubu Highlights Drilling 3 successful producers 1 probable gas injector 1 unsuccessful well Workovers 3 major successes Resurrection of Old Wells 4 major successes Wireline Work & Zone Changes Intensive successful ongoing…
  20. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 20
    Kutubu Improvement Reservoir History Plot - Kutubu including Agogo 50,000 Before Oil Search After 45,000 40,000 IDT-20 IDT-18 IHT-2 35,000 IDT-21 IDT-11 IHT-1A IDT-10 IDT-9ST2 IDT-22 30,000 Rate (bopd) IDT-4ST1…
  21. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 21
    Previous Maps of Top and Base Toro 300 -1 400 60 -1 IDT 9 IDT 11 0 70 -120 0 -1 0 -1 90 50 0 0 -110 0 -1 Iagifu 6XST1 300 - 14 00 Iagifu 4X -1200 -1 - Iagifu 6X1200 80…
  22. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 22
    Previous Maps of Top and Base Toro - 1400 5 00 IDT 9 IDT 11 -2 -130 - 1 00 -1 00 -12000 -1 70 80 0 6 0 0 Iagifu 6XST1 -14 00 Iagifu 4X -15 00 -13 0 0 Iagifu 6X IDT- 8ST1 -1400…
  23. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 23
    New Original Top Toro C Structure -14 -140 00 IDT 9 0 IDT 11 IDT 9ST2 -1 -15 10 Iagifu 6XST1 00 0 00 -13 - 13 00 Iagifu 4X -1200 -1-16 -1 40 0 -1 20 0 0 700 Iagifu 6X 0 IDT 8ST1 -1300 IHT 3 -1…
  24. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 24
    Moran Highlights Drilling 2 successful producers 1 successful appraisal well NWM Temporary Production System Unloaded M6 well after 2 years shut-in Provided incremental production from M9 well APF Optimisation initiatives…
  25. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 25
    Moran Field Recent & Future Activities 728000 730000 732000 734000 736000 738000 Top Digimu Structure 740000 9314000 9314000 M6 well Kicked off NW Moran 1 st4 with TPS in 2004 K Block -20 st3 NW Moran1 00 NW Moran 1 st5…
  26. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 26
    Gobe Highlights Drilling 1 successful appraisal well Workovers 2 successes Water Injection Improved management of produced water Gas Optimisation Swing well management and facilities optimisation
  27. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 27
    Gobe Field 2004-2005 Production Optimisation Activities G6X ST2 U. Iagifu WO G8X ST3 Water injector G2X ST1 Tie-in G7X ST3 CT WO SEG6 ST1 Performance SEG11 SEG5 ST1 New production Sand cleanout Optimisation of gas…
  28. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 28
    Gobe Field Production Improvements 40,000 35,000 Natural Field SEG 6ST1 Decline improved 30,000 performance Rate (bopd) 25,000 SEG 5ST1 SEG 11 online & appraisal 20,000 G6XST2 WO 15,000 10,000 5,000 Repair to…
  29. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 29
    SEG 11 Well Results SEG 11 Saunders 1 SEG 6ST1 61m oil column in Upper and Lower Iagifu Excellent reservoir quality Completion underway first oil June 05 Significant potential for additional wells
  30. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 30
    New Developments SE Mananda: will come on production 3Q/2005 - year end 9,000 bopd gross NW Moran: will come on production in 3Q/2005 at around 3,000 bopd gross Yemen: will come on stream in mid 2005 at around 5,000 bopd gross,…
  31. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 31
    SE Mananda Schedule Moran SE Mananda Agogo Processing Facility Hegigio Bridge construction underway Facilities and pipeline construction underway Spud first well June 05 First oil 3Q 2005 Final well on stream 4Q 2005
  32. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 32
    SE Mananda Development Hegigio Gorge Bridge Site North Abutment South Abutment
  33. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 33
    SE Mananda Development Hegigio Gorge Bridge Site North Abutment South Abutment
  34. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 34
    SE Mananda Development SE Mananda 2X SE Mananda 1X SEM 4 SEM 5 SEM 3 3 new development wells SE Mananda 1X workover Ramp up to 9,000 bopd Potential for secondary recovery Further exploration potential
  35. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 35
    Nabrajah Field Development Block 43 Yemen Oil bearing Qishn Sandstones being bought on production in June Oil and gas discovery in Basement Flowed up to 5,800bopd with no pressure dip Kohlan flowed 4,180bopd as third production…
  36. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 36
    Block 43 - Location Nabrajah EPT in Yemen Oil Searchs First Non- PNG Oil Production
  37. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 37
    Nabrajah Field Qishn Development Nabrajah-5 defined southern limit of main Qishn closure N-5 drilled into down-thrown fault block not imaged by seismic Development of Qishn ongoing with first oil from EPF anticipated end June 05 Initial…
  38. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 38
    Nabrajah Field Basement/Kohlan Nabrajah-5 has confirmed oil in the Fractured Basement and Kohlan Formation carbonates Basement well test data from N-2 well (gas) and N-5 (oil) wells imply they are in pressure communication with no…
  39. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 39
    Nabrajah Field Basement/Kohlan Possible Closure in this area 600m oil column is unconstrained by mapping 250m oil column Nabrajah 2 Nabrajah 5
  40. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 40
    Nabrajah Basement Discovery Nab-2 Nab-2 Nab Nab-1 Nab Nab-5 AlAl Haglah-1 Haglah -1 N-2 gas test 15 Mscfg/d 2000 m SRD Gas/oil contact N-5 2225 m SRD DST 1B oil 5,800 210m Gas column bopd 250m oil column N-5 TD…
  41. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 41
    Exploration - PNG Major seismic programme to mature prospects for 05 & 06 drilling Drilling in 2005 - Mananda Attic (100 mmstb) - Arakubi (35 mmstb) - Wasuma (80 mmstb) Development/Appraisal Drilling - Up to 3 rig operations MANANDA…
  42. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 42
    Gas Commercialisation
  43. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 43
    Gas Commercialisation The Momentum is Building PNG Gas Project FEED decision has started the clock Project participants committed to bring project to an investment decision Key Australian east and south coast energy stakeholders…
  44. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 44
    Gas Commercialisation The Momentum is Building Range of other opportunities being matured Petrochemical plant in Port Moresby Detailed feasibility studies well advanced Pipeline to Port Moresby FEED about to commence Gas supply…
  45. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 45
    PNG Gas Project The Importance of FEED Decision Alignment of Joint Venture Announced in October 2004 Followed signing of conditional sales agreements with QAL and CS Energy Heightening market interest in Queensland and Southern States…
  46. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 46
    Project - Scope Joint Venture between ExxonMobil (39.4%, Operator), Juha Oil Search (54.2%), Hides Nippon Oil (3.4%), MRDC (3%) Gas sales only, condensate Moran exported with existing crude Kutubu Conversion of existing Kutubu oil…
  47. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 47
    Australian Pipeline Planned Pipeline route, but subject to change Abundant competitively PNG priced gas Hides Kutubu Gobe Competitive advantage for Port Moresby major industrial Torres Strait Existing expansions Cape York Marine…
  48. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 48
    So What is Different Now: Simple design configuration optimises oil facilities, whilst accelerating liquids production Capital efficient Lower market thresholds especially with in country gas based industry development Economics impacted…
  49. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 49
    Gas Commercialisation Design Concept Total 650mmscfd Gas Production HIDES facilities production Multiphase Full Condensate Recovery pipeline 600mmscfd KUTUBU CPF Oil production & AGOGO 165mmscfd gas CPF Additional condensate…
  50. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 50
    Gas Market Status Project targeting major gas offtakers Resource projects Comalco, WMC Natural contract replacements Other conversions power etc. Significant proportion in market growth Major interest from large gas aggregators
  51. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 51
    Implications for Eastern Australia Wood Mackenzie analysis suggests even with PNG, CBM & Yet-to-Find (YTF) gas a clear need for new sources of gas supply to meet demand arises from 2015 Eastern Australia - Supply & Demand Base Case
  52. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 52
    In Country Developments Oil Search wishes to be a leader in PNG In Country developments Recent conditional agreement to sell 86PJ/yr for 20 years for world scale petrochemical plant in final feasibility stage Other potential…
  53. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 53
    In Country Developments Establishing Cornerstone Demand in PNG Petrochemical Plant at Napa Napa (Port Moresby) to produce methanol/DME Joint Venture with MGC/Itochu In detailed feasibility Pipeline at FEED decision DME marketing in…
  54. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 54
    Gas Commercialisation Unprecedented interest in gas developments in PNG Fundamentals for successful sequence of developments coming together Next 12-18 months critical for delivery
  55. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 55
    Production Outlook Existing Fields 45,000 40,000 Net Oil Production (stb/d) 35,000 30,000 25,000 Existing Fields 20,000 Planned field maintenance 15,000 accelerated to Feb 05 10,000 5,000 0 Jan-04 Jul-04 Jan-05…
  56. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 56
    Production Outlook New Development 45,000 40,000 Net Oil Production (stb/d) 35,000 New Developments 30,000 25,000 Existing Fields 20,000 15,000 10,000 5,000 0 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 NW Moran…
  57. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 57
    Social Responsibility Oil Search taking a business approach based on sustainable developments: Extending production and facilities life Pro-active maintenance programmes Building core expertise of staff OSH Academy Skills…
  58. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 58
    Summary Since assuming operatorship of its core business in PNG, Oil Search has: Added production capacity to all field areas extending field life Reduced operating costs and improved profitability Commenced development of three…
  59. 2005 ANNUAL GENERAL MEETING – Oil Search Limited – slide 59

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