OIL SEARCH LIMITED Oil Search UK Roadshow June 2008 1
Oil Search Location Map 2 Operating Environment 3
Profile Established in Papua New Guinea (PNG) in 1929 Operates all of PNGs producing oil and gas fields. Current gross production 46,000 boepd, net share 24,000 boepd As operator, responsible for generating 22% of PNGs export…
Total Shareholder Returns (TSR) Ranked No.5 TSR Performer amongst current ASX 100 for 5 year period to Dec 2007 (53%pa on an annualised basis) 70% 60% 53% 50% 40% CAGR 30% 20% 10% 0% Macquarie Communica.…
Setting a New Course Major Strategic Review recently Existing portfolio can deliver completed superior TSR Key Conclusion: Substantial unrealised value exists within Oil Searchs current asset portfolio, capable of generating…
PNG LNG Project A Company Transformer 10 Primary focus - PNG LNG PNG LNG Project is Oil Searchs primary focus This development will represent PNGs cornerstone gas development and will underpin Oil Searchs production and…
PNG LNG Project Integrated development of Hides, Angore and Juha gas fields plus associated gas from the Kutubu, Agogo, Gobe and Moran oil fields Upstream infrastructure including production wells, processing facilities and…
Asia-Pacific LNG Markets are Robust Regional market fundamentals 250 are robust mmtpa Steady expansion from existing markets (Japan, 200 Korea, Taiwan) Market Growth from emerging 150 opportunity markets of India & China…
Recent AsiaPac LNG deals Sept 07 - Woodside to Petrochina, 2 - 3 mmtpa, 15 - 20 years, key terms with supply ex Browse Sept 07 - Shell to Petrochina, 1 mmtpa, 20 years, binding HOA ex Gorgon Nov 07 - Woodside to CPC, 2 - 3 mmtpa,…
PNG LNG Project - Milestones Reached Commercial alignment (JOA) amongst the Project Owners Joint Operating Agreement executed in March 2008 Initial funding interests pre-Government back-in (Oil Search 34%) Unitisation and…
PNG LNG Capex Estimate EM Project Execution Performance ExxonMobil historically has delivered projects on time and 125 Actual vs. Funded (%) on budget Cost Schedule First phase capex (2008 2014) expected to be between US10…
Delivering PNG LNG FEED deliverables: Securing market off-take (2008/09) Securing debt and state equity funding (IM 4Q08, Financial Close end 09/early 2010) Award of EPC contracts (2009) Executing agreements on benefit sharing…
PNG LNG Financing Debt: Joint debt financing approach, led by a Finance Committee co-ordinated by ExxonMobil. Soc Gen appointed financial advisor OSH share of project finance around US3 billion, nominal, including fees, capitalised…
Economic Importance of PNG LNG ACIL Tasman Report 6 February 2008 Affects economy of PNG and its balance of trade situation profoundly GDP will more than double (K8.65bn (2006) to K18.2bn average during production phase) Oil & Gas…
Oil Operations Providing Cash for Growth Since Oil Search took over operatorship of PNG oil fields in 2003, fields have produced 45 mmbbl in excess of previous operators expectations and field life extended Aim is to optimise PNG…
2008 PNG Development Focus Areas Moran: 2 development wells & 1 workover Agogo: 2 workovers Kutubu: 4 workovers Usano: 4 development wells 30 PNG Gross Oil Production 80,000 Oil Search Added over P50 Hides…
PNG Net Production (Life Of Field) 10,000 NET Production 9,000 (Mstb) 8,000 7,000 6,000 5,000 Hides GTE SEM 4,000 SE Gobe 3,000 Gobe Main Moran 2,000 Kutubu 1,000 0 2008* 2009 2010 2011 2012 Activities 6 wells 6…
Cost control - Opex Cost inflation of 9 PNG Controllable Costs / Barrel 10%, higher in 8 specific areas 7 Other Focus areas for cost Marine Telecommunications Catering Services Services & Fees reduction: 6 Fuels, Chemicals,…
PNG Gas Resource Base PNG discovered gas reserves by field (Source: Wood Mackenzie Path Finder) Gobe A rea Kuru Iehi Bw ata Koko SE Mananda Technical Reserves 0.1% Technical 2% 1% 1% 0.3% Technical Gas Gas 17,000 17,000 bcf bcf…
Gas Growth Opportunities PNG LNG Project sets the stage for additional gas-based growth opportunities. OSH seeking to: Increase contractible gas Plan infrastructure for gas hubs and corridors Capture high value market opportunities…
Delivering Gas Growth Focus for OSH: Build on existing gas portfolio by acquiring/ consolidating interests in key fields Undertake further exploration & appraisal in 5 hubs: Eastern Forelands (eg Barikewa) Western Corridor Stage 1…
PNG Exploration Portfolio optimisation Data room prepared for farm down of some exploration exposures in PNG Seeking to build on gas portfolio (already outlined) Oil exploration High grade remaining prospects in close proximity to…
NW Paua PPL219 PPL233 PPL 233 WI % NW PAUA Oil Search 52.5 PDL6 PDL5 Esso Highlands 47.5% Moran Paua Highly prospective structure adjacent to SE Mananda Moran PPL219 Stacked Toro and Digimu reservoirs APF Agogo Moro PPL219 Mean…
Wasuma PDL4 PPL219 PPL219 WI % Gobe Main WASUMA Oil Search 91.25 SE Merlin Petroleum 8.75% Gobe Wasuma Near field exploration opportunity adjacent to the SE Gobe oil field PDL3 PDL4 Iagifu sandstone primary objective - proven…
MENA Exploration Le Kef Tajerouine Bina Bawi Shakal Area 18 Dubai Office Sanaa Office Block 7 Block 3 48 Area 18 Offshore Libya Area 18 WI % Oil Search 30 Petrobras 70 (Operator) Area 18 located in…
Performance in 2007 Total production of 9.78 mmboe, just 4% lower than in 2006 despite PNG oil field maturity Realised oil price of US77.78/bbl, 16% above 2006 Record revenue of US718.8 million, up 12% on 2006 Record EBITDAX of…
Treasury Review US344 million in cash at year end, no debt Current cash position of US385 million Work underway to refinance corporate facility increasing funding commitment to US400 million and group liquidity to in excess of…
Outlook 56 Oil Search The Next 5 Years The Company at a cross roads Potential to multiply value by delivering PNG LNG and other Gas Opportunities Three distinct phases over the next 5 years Phase I PNG LNG to FID 2008-09…
The Focus in 2008-2009 Reorganising management and teams for specific value delivery PNG LNG Delivery Group JV support Oil operations synergies and interface Associated gas FEED and construction In-country landowner management…
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