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MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited

Oil Search Limited · Nov 17, 2009 · 24 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. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 1
  2. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 2
    Oil Search Profile Established in Papua New Guinea (PNG) in 1929 Operates all of PNGs producing oil and gas fields. Current gross production 40,000 boepd, net share 21,000 boepd As operator, responsible for generating 22% of PNGs…
  3. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 3
    Strong 5 Year Share Price Performance TSR for five years to end 2008 of 396%, 7th out of ASX 100. Continued top quartile performance targeted 7.00 Share price (rebased to OSH) 6.00 Oil Search 5.00 4.00 Woodside 3.00 Santos…
  4. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 4
    and world class safety performance Total Recordable Incidents (TRIs) of 1.12 to date in 2009 14 12.7 12 10.6 10.7 TRI / 1,000,000 Hours 9.8 10 Australian Companies (APPEA) 9.4 9.3 8.5 9.1 8 7.8 8.2 7.0 7.3 6.3 6.8…
  5. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 5
    The Next Growth Phase PNG LNG T1 and T2 is transformational for both Oil Search and PNG 580mmboe of 2P reserves will be commercialised (pre-Govt back-in) Nearly triples OSHs production base Introduces 30 yr plus legacy cashflow…
  6. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 6
    PNG LNG Project 11 PNG LNG Update On track for a Final Investment Decision on 8 December 2009 and Financial Close in mid February 2010 Targeting first LNG sales late 2013/2014 Project Milestones: FEED preliminary…
  7. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 7
    PNG LNG Update EM Project Execution Performance Historically, ExxonMobil 2004 2008 start-ups Actual vs. Funded (%) has delivered projects 120 on time and on budget, even during the recent 100 period of high inflation 80 PNG LNG…
  8. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 8
    LNG Contract Pricing Analysis of Contracts to Japan, Korea and China (DES) 18 Crude Oil Parity RasGas to KOGAS (from 2007) 16 Dec 06 Shell (QG) to PetroChina 14 Apr 08 Bontang (Renewals) Mar 08 12 Average Australia to…
  9. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 9
    Financing OSH share of capex (2008 -2015) including financing fees, capitalised interest through construction etc is US5.3 bn Will be funded 70/30 debt:equity OSH participating in joint project finance facility for 70% debt Term…
  10. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 10
    PNG LNG Onshore Pipeline Route aims to avoid: Inhabited areas Sacred areas Archaeological sites Critical wildlife habitat 19 PNG LNG Offshore Pipeline 200,000 tonnes of steel Less than 100 metres deep Route…
  11. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 11
    PNG LNG - LNG Plant 6.6 mtpa LNG plant 2 Storage Tanks 4 Loading Arms 21 LNG Expansion PNG LNG infrastructure will provide substantial cost synergies for further LNG expansion/(s) Studies underway on third train,…
  12. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 12
    Asian LNG Markets Outlook LNG Uncontracted Demand (mmtpa) 120 100 Other New Markets India 80 China Taiwan 60 Korea 40 Japan 20 2007 2008 2009 2010 2012 2015 2020 Source: Source: FACTS GLOBAL FACTS GLOBAL ENERGY, FEB…
  13. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 13
    PNG Gas Exploration Oil Search is well placed in what is a strongly competitive environment Acreage and exploration boom, with major new entrants. Around US500m spent in acquisitions / farmin commitments in last 12 months Key…
  14. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 14
    Operations Review 27 PNG Production PRL03 Hides 5 producing oil fields PRL02 PDL1 PRL11 Kutubu Gobe Main PDL6 SE Gobe PPL239 PRL12 PDL5 Moran PPL233 SE Mananda Moran Kutubu Agogo SE Mananda PDL2 PPL219 Gobe…
  15. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 15
    Providing Cash for Growth Since Oil Search took over operatorship of PNG oil fields in 2003, fields have produced 50 mmbbl in excess of previous operators expectations and field life extended Existing oilfields are mature (decline…
  16. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 16
    Active Cost Management PNG production is highly Total cash costs per boe profitable net oil field US/boe 16 costs US10.74/bbl in 1H09, US9.97/boe 14 1.09 including gas field costs 12 1.75 2.18 0.46 Global industry cost 10…
  17. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 17
    Preliminary Forecast of PNG Gross Oil Production 80,000 70,000 60,000 Oil Production (Bopd) 50,000 40,000 P10 30,000 P50 Pre-OSH P90 20,000 Decline 10,000 0 0 8 9 2 3 1 2 3 4 5 6…
  18. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 18
    3 year forward exploration programme* Placeholders Gas Play Proven FW Play Oil Play Deep Jurassic Play Intra Pliocene Clastics Play New Concepts Near continuous exploration, seismic and drilling programme in PNG dry seasons…
  19. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 19
    MENA Exploration Le Kef Tajerouine K42 Block Tunisia Shakal 1 Area 18, Libya (testing) Iraq Caliph well (drilling ahead) Libya Dubai Office Block 7, Al Meashar 2H09 Sanaa Office Yemen Block 3, Tubba (drilling…
  20. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 20
    Tubba-1 Block 3, Yemen Block 7 Block 3 WI% Oil Search 60.00 PetOil 34.00 Yemen Oil Company 6.00 Block 3 Tubba discovered gas/condensate in basement Flowed up to 9 mmscf/d gas and 450 b/d condensate Well suspended Structure on…
  21. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 21
    Equity Raising Uncertainty on closure timing of IPIC transaction became unworkable in context of PNG LNG financing and ASX requirement for shareholder approval IPIC remains strongly supportive of OSH and PNG LNG Healthy share price…
  22. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 22
    Revenue Update at 30 September 2009 Total Revenue YTD 9 mths 9 mths 3Q09 realised oil price to Sept to Sept of US72.44/bbl, 08 09 compared to Oil & Gas US55.57/bbl in 2Q09 production 6,443 5,899 (mmboe) Crude inventory…
  23. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 23
    Summary Strategic Focus Deliver Phase I of PNG LNG Trains 1 & 2 Transformational for Oil Search Major appraisal and exploration programme 2010-2013 to deliver proven reserves for T3 and beyond Partnering early with Highlands and…
  24. MORGAN STANLEY ASIA PACIFIC SUMMIT – Oil Search Limited – slide 24
    OIL SEARCH LIMITED 47

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