OIL SEARCH LIMITED Continued Growth in the New World Order The Good Oil Conference 5-6 September 2006 1
Managing the New World Order Business in a New Environment Sustained oil prices US50/bbl and above Unprecedented demand for gas (especially in Asia Pacific) delivering a new price environment Increasing disconnect with East Coast…
Four Years of Strong Performance Strategic Review in 2002 Four year plan to double company value, and to generate top quartile returns All key objectives have been achieved Delivered : operating control of core business :…
Achievements Net Production Growth 40,000 Kutubu Moran Gobe Main SE Gobe Hides Nabrajah SEM 35,000 +10% Post AGL +6% sale 30,000 +25% 25,000 +23% stb/d 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 1H…
Achievements Growth in Net Profit After Tax 240 20 17.9 220 Net Profit 18 200 EPS 16 180 14 160 140 12 US cents USm 9.6 120 10 100 7.7 8 80 4.5 6 60 4 40 1.8 20 2 0 0 2001 2002 2003 2004 2005 1H 2006…
Control of Costs 1H05 1H06 Normalised PNG Oilfield US Costs per Barrel USm USm 8 Kumul Field Costs 1.31 7 - Oil: PNG 33.1 22.2 Tariffs - Oil: Yemen - 5.9 6 1.49 - Hides 1.4 2.3 Tariffs 5 0.75 Other Prodn Opex 4 Net - Oil…
Strong Balance Sheet US537 million in cash at 600 end June, no debt Cash Debt Gearing US126 million of debt % outstanding repaid in first 500 quarter 2006. US term 40 loan commitment converted to a revolver 400 Liquidity of…
Growth - The Next Phase New Strategic Review underway Objective to more than double company value by 2010 Starting from a position of strength Excellent asset base, with large discovered gas resource and quality exploration…
1992 9
2002 Smaller bus frustrated passengers 10
2003 11
2006 Bigger bus Lots of gas, New assets 12
2010 A fleet of buses 13
Growth - The Next Phase Oil Search positioning itself to take advantage of opportunities created by new fundamentals: Key part of new Strategic Review Targeted value extraction in producing fields Commercialisation of discovered…
Growth - The Next Phase Control of the main value drivers and operational levers: Equipment ownership Drilling equipment Procurement and services alliancing Operations optimisation with tight cost controls People development and…
Growth - The Next Phase Focus for Growth Deliver Value Substantial remaining potential in PNG oil fields Further Yemen developments Cost controls and improved profitability Extract Value Commercialise our 1 billion boe gas and…
DELIVERING VALUE 17
PNG Oil Production Outlook Summary 80,000 PNG (Gross) Strong performance from Moran and 70,000 SE Gobe, SE Mananda Trend Before Potential Oil Search still to peak 60,000 Significant Oil Production (stb/d) opportunities…
SE Mananda Bridge Innovative engineering opens up new exploration/development trend 19
EXTRACT VALUE 20
Gas Commercialisation Substantial change in oil and gas markets over past 3 years: Sustained high oil price Strong interest in gas development options Growing gap between world export pricing vs Australian East Coast energy…
Gas Commercialisation The Foundations for Value Extraction Oil Search gas resources and associated liquids total 4.5TCF and 200mmbbls (1 billion boe) Core resources at : Kutubu Hides / Angore Other fields Kimu / Uramu / Barikewa…
Juha Angore Pnyang Honinabi Major Oil and Gas Fields with Mogulu North Mogulu South Exploration Iehi Kimu Uramu Barikewa Pandora 23
Gas Resources (Gross PNG) Recoverable Gas (bcf) Elevala 30,000 Ketu Pandora Recoverable Gas (bcf) 25,000 Uramu Kimu Barikewa 20,000 P'nyang Yet to Find Angore 15,000 Juha Hides 10,000 SE Gobe Gobe Main 5,000…
Gas Commercialisation Maximum Value to Oil Search Three stage growth to gas business over next 6 years Optimises value of resource (gas and oil) Leverages oil infrastructure Incrementalises build through unitisation of main…
PNG Gas Project 1st Phase Development 80.0 70.0 Production Net to OSH 60.0 50.0 (mboed) 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP Liquids PNGGP Gas 26
PNG Gas Project 2nd Phase Development 100.0 90.0 Production Net to OSH 80.0 70.0 (mboed) 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP Liquids PNGGP Gas…
PNG Gas Project 3rd Phase Development Significant production increase over 4 years 120.0 Production Net to OSH 100.0 80.0 (mboed) 60.0 40.0 20.0 0.0 2006 2010 2014 2018 2022 2026 2030 PNG Oil MENA Oil PNGGP…
Gas Development Potential Excluding PNG Gas Project Able to double production through petrochemical developments 80.0 70.0 Production Net to OSH 60.0 (mboed) 50.0 40.0 30.0 20.0 10.0 0.0 2006 2010 2014 2018…
Gas Commercialisation PNG Gas Project Robust economic project can be achieved based on alignment of stakeholders, Capex outlook and likely gas pricing Endeavouring to close a range of issues in the short term Confirmation of…
Gas Commercialisation Preference to secure PNG Gas Project as first development Provides optimal base for sequential development 2009/10 Provides leverage of existing infrastructure and oil and gas integration The Kutubu / Hides…
In-Country Development Options Petrochemicals (Methanol / DME) Mitsubishi / Itochu seeking to convert existing ITA for 86 PJ/yr to GSA In final feasibility Sanction 2007 Delivery 2010 Fertiliser / Ammonia Oswal Industries…
In-Country Development Options LNG based on Hides / Angore / Juha 2013 development Possible early liquids cycling LNG MOU with BG Focussed on areas away from Hides / Kutubu World class LNG participant 33
PNG Drilling Activity 3 rigs running continuously 4th rig in country 2H 2007, 5th rig 1Q 2008 Oil production, oil exploration, gas appraisal and gas exploration activities 17 wells planned in 2006/2007, including: Arakubi Two Juha…
Yemen Prospects Proposed Prospect B Proposed East Wadi Sana-1 Nov 2006 Jan 2007 NABRAJAH Proposed Shaibah-1 Nov 2006 Proposed Al Harsh-2 3Q 2007 Proposed Ataq-1 3Q 2007 Proposed Riyan-1 Jan 2007 Proposed Suad-1…
Egyptian Prospects 49.50% Umm El Yusr Area A Exploration 100.00% Kareem, Yusr, Kheir & Shukheir Development Wadi Dara Exploration 38
Kurdistan TURKEY Bina Bawi EPSA Zakhu Kurdistan Region Mosul Kirkuk SYRIA Tikrit IRAN Baghdad IRAQ SAUDI ARABIA Oil Field Basrah Gas Field Oil & Gas Field Gas Pipeline 0 200km Oil Pipeline KUWAIT…
MENA Drilling Activity 18 wells planned for Yemen in 2006/2007, including: Two exploration wells in Block 3 Two exploration wells in Block 35 Two exploration wells in a new block through farm-in Exploration and development drilling…
SUMMARY 41
Growth in the New World Order Oil Search well situated to deliver real value to shareholders in the New World Order Large discovered gas and liquids resource Range of commercialisation options Importance of alignment and control…
Loading...
