The Oil Search Story UBS 2nd Annual Australian Resources Conference
Growth is a Challenging Environment Summary Fundamentals are Strong : Production : on target for growth in 2004 Earnings : significantly ahead of budget Operating Costs : below budget Development NW Moran on target for year end…
Growth is a Challenging Environment Summary Gas Commercialisation Strategy to crystallise project decision making for HGP and other gas initiatives Greater influence on development following oil operatorship change Value…
Gas Commercialisation a Platform for Growth Oil Search gas and liquids resources exceed 4.9TCF Largely brownfields development for gas, with oil production with common use of infrastructure Project integration and development…
Gas Commercialisation a Platform for Growth PNG Pipeline Project has secured (and lost) approx 150 PJ of gas markets in Australia Demonstrates competitive terms offered Buyers willing to pay a premium for gas with certainty of…
Gas Commercialisation a Platform for Growth The importance of FEED Allows full analysis of development options and optimisation Provides customers with greater project certainty delivery window PNG gets in the queue. Stakes its…
Gas Commercialisation Design Concept To be fully reviewed through FEED HIDES facilities Multiphase Total 650mmscfd Gas Production production 600mmscfd pipeline Full Condensate Recovery KUTUBU CPF Oil production & AGOGO…
Gas Commercialisation Project Costs Costs as a Screening Level to be refined through FEED Initial Capex Kutubu & Hides Development US1.0bn Pipeline and Infrastructure FEED & Project Management Costs US0.3bn US1.3bn 2nd Phase…
Gas Commercialisation Market Outlook Always various views The vested interest - maintain market share & margin : no new supplier entry The new player - aggressive pricing Market demand clearly dominated by price and availability…
SE Australian Gas Market without PNG Gas Oil Search Base Case profile (moderate growth) No northern gas connection to Moomba Large volumes of unsatisfied demand no real alternative Australia Supply by Basin 1400 1400 Potential…
SE Australian Gas Market with PNG Gas Assumes Cooper/Eromanga and Gippsland/Bass perform Includes circa 100 PJ CSM Supply Accelerated decline or under-performance anticipated by some PNG well-placed to capture market shortfall…
Gas Commercialisation FEED Decision HGP FEED decision imminent Progress on agreeing terms for gas sales with QAL Awaiting final decision All others issues for FEED Decision are positively resolved
Other Industry Development FEED for the Pipeline Project and Project Development facilitates other industry development in PNG Abundant resource Very favourable fiscal regime Developing infrastructure Oil Search Mitsubishi Gas…
Summary Oil business performing well Production on budget Operating synergies starting to come through Developments on schedule Exploration in PNG and Yemen accelerated in 2H 04
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