Presentation Agenda Introduction Peter Botten PNG LNG Project Update Phil Caldwell PNG Gas Growth Julian Fowles Exploration - MENA Julian Fowles PNG Production Paul Cholakos Mananda Development Beth White PNG Community Issues Gerea…
PNG LNG Project Angore Juha Hides Juha Facility Moran Hides Gas Conditioning Plant Komo Airfield Kutubu Agogo Gobe Main Onshore pipeline and Infrastructure Oil Pipeline Kumul Terminal PNG LNG Gas Pipeline OSH…
PNG LNG Plant Site Schematic 2010 7 PNG LNG Plant Site Google Earth Sept 2013 8
PNG LNG Project Overview 6.9 MTPA, 2 train development, operated by ExxonMobil Expected to produce more than 9 tcf of gas and 200+ million barrels of associated liquids over its 30 year life: OSH share: 504 mmboe of 2P reserves booked…
PNG LNG Project Status Summary Component EPC Contractor Milestones Achieved (2013 YTD) LNG Plant Chiyoda/JGC JV Commissioning activities underway on T1, common process and utilities areas, tanks and jetty Offshore Pipeline Saipem…
PNG LNG Plant Site - Progress December 2012 August August2013 2013 October 2013 13 PNG LNG Plant Site August 2013 LNG Facility Located on State Portion 2487, 20km north-west of Port Moresby 700 ha site 2 x…
PNG LNG Export Jetty 2.4km jetty Allows access for 125,000m3 220,000m3 LNG tankers, to transport LNG to international customers Four LNG ships leased from Mitsui O.S.K. Lines, Ltd. for portion of LNG sales sold on delivered…
PNG LNG Associated Gas Projects (OSH-operated) TEG Dehydration Unit at CPF Major milestone achieved in Sept 13 when commissioning gas from Kutubu was introduced into LNG plant Gas being used to commission plant site utilities and…
PNG LNG - Hides Gas Conditioning Plant September 2013 November 2012 HGCP will collect and separate gas and associated liquids from Hides, Angore and Juha fields Capacity of 960mmcf/d All major equipment received and set September…
PNG LNG Project Timetable Continued early works Continue onshore Detailed design pipe lay Complete construction Order long leads and Complete offshore pipe and commission HGCP place purchase orders lay Complete Hides Open supply…
PNG LNG Building Local Capacity Workforce: At end 3Q 2013, Project workforce totalled 18,500 (peak of 21,220 at end 2012), 40% PNG citizens Workforce numbers continue to decline as construction nears completion. Project preparing…
25 Overview Sufficient discovered gas resources in PNG for further 2-3 LNG trains: Next two years will further define development nature and timing Focused exploration, appraisal and third party negotiations ongoing Oil Search…
OSH PNG Portfolio of Opportunities Increase 1P reserves at Hides to be evaluated by drilling in 2014 Discovered undeveloped gas resources: Pnyang (38.5% equity) Kimu (60.7% Equity) Juha North (24.4% Equity) Flinders (30% Equity) Uramu…
Oil Search Resources Pnyang Key resource for underpinning potential T3: Estimated total 2C recoverable gas resources in Pnyang field of 2.5 3.0 tcf Proving additional upside may require an additional appraisal well Acquisition of…
Juha North PDL 9 PDL 9 Juha North Hides Kutubu Juha North Gobe PDL 9 WI % Juha North segment not within PNG LNG Project Exxon Mobil affiliates Gas proven with significant potential upside, but 43.4 (operator Esso PNG…
Third Party Resources PPL339 PRL 15 Elk / Antelope fields represent largest undeveloped PPL277 resource in PNG: Current resource estimates indicate 338 339 PRL 15 can underpin at least one LNG Triceratops 339 train 338 PRL 15…
Summary Key strategic focus on ensuring highly value accretive LNG expansion opportunities are crystallised Ongoing exploration and appraisal activity in the Highlands to support PNG LNG expansion Outcome of PRL 15 of key importance,…
2013 Production Production to end October of 5.6 mmboe Full year 2013 production expected to be toward higher end of guidance range (6.2 6.7 mmboe) Significant contributions from successful wells at Moran and Usano Period of major change…
2013 success: UDT 14 Usano East -1750 UDT 11 UDT 14 UDT 14ST1 DT 10 -1 -1500 UDT 7ST1 UDT 4A UDT 13 UDT 6 Production & Injection Rates Successful pilot hole to appraise structure and OWC, followed by horizontal sidetrack…
AFL A : Next Development Well in Agogo Forelimb Third well on Agogo forelimb Planned to spud in 2014 Sophisticated 3D structural, geological and compositional simulation modelling being used to reduce uncertainties and optimise well…
43 Mananda Development, PNG Highlands Application for development licence submitted to PNG Government in August 2013 Base development focused on Mananda-1 the 2 well tie back of Mananda-2/3 Mananda 5 and Mananda 6 to…
Mananda 7 Appraisal Well Mananda 3XST1 Mananda 7 appraisal well scheduled to spud 4Q13 Mananda 5 Designed to target backlimb of Mananda 7 structure, to test for upside volumes and provide additional structural data for…
47 Oil discovery at Taza 1, Kurdistan Taza 1 Taza PSC (OSH 60% Operator, Total 20%, KRG SW NE 20%) Light oil proven across Jeribe/Dhiban and Euphrates/Kirkuk intervals Testing of 150m interval across Euphrates / Kirkuk sections…
Appraisal at Taza Discovery report submitted to KRG in July 2013. Proposed appraisal programme submitted September 2013 Appraisal programme includes: Taza 2, to appraise upper intervals and explore deeper Tertiary and Cretaceous…
Kurdistan Operating Environment Oil Field Resource estimate of 40 billion barrels oil and Tawke Field Oil & Gas Field 60 tcf gas (USGS, 2010) Shaikan Field Gas Field Gas/condensate KRG stated production target of 1 mmbopd by Oil…
Taza PSC Fiscal Terms Summary Fiscal Terms Taza PSC Working Interest Oil Search 60%, Total 20%, KRG 20% (fully carried) Paying Interest Oil Search 75%, Total 25% Royalty 10% of gross revenue Cost Oil Up to 40% of net revenue (post…
Dynamic operating environment Population now +7 million people with 52% aged 19 or younger Still largely family and clan based society Significant investment in PNG LNG Trains 1 and 2 nearing completion with more developments to come…
Unparalleled Commitment to Maintaining Community Relationships Successful model based around: Anna Golang (middle), OSHF Programme Officer with two nurses, Juni clinic, Hides Continual dialogue and reliable intelligence Strong…
Strong relationships with Government OSH has close working relationship with Government agencies Facilitate interaction between State agencies and impacted communities across Project footprint. Examples: Organisation of Benefits…
Increasing transparency and accountability Long term track record in transparency Aim to lead by example: Strong advocacy role in PNG EITI adoption Walking the talk OSH Payments Report Industry Payments Report In-country…
Oil Search Health Foundation Established in 2011 as a not-for-profit charity which aims to improve long term health and wellbeing of people of PNG Draws on Public Private Partnership (PPP) model and uses fundamental business principles…
Sustainability strategy Primary objective: ensure appropriate platform to support needs of growing business and changing expectations of stakeholders Focus on: governance, systems and controls, broadening capability, communication, risk…
2013 Guidance Remains Largely Unchanged Production: Towards upper end of 6.2 6.7 mmboe guidance Operating costs: Normalised opex US24 - 26/boe (incl corporate costs) Impacted by: Major workover programme to maximise oil recoveries…
Capital Management Under Review PNG LNG revenues getting closer Board recognises need to share value created by PNG LNG with shareholders: Seek to balance investment in quality high returning growth projects with dividend and other…
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