Sanford C. Bernstein Strategic Decisions Conference Chris Finlayson, Chief Executive 1 October 2013
Key messages BG committed to delivering industry leading growth in shareholder value Strategy is clear and being executed Delivery of growth projects is on track and on budget Will deliver improved margins, cash flow and returns…
Our strategy BG Group High growth E&P and LNG company World class Actively manage exploration & Prioritise value our portfolio to unique LNG over production reinvest in growth business Focus on areas Focused portfolio…
Strategy to deliver shareholder value Strong growth in E&P and LNG volumes Proportion of production with cash margins 50/boe to triple over next 5 years Earnings to grow faster than production Capital expenditure to fall to 8-10bn…
Strong financial outlook: current programme* 2015 volumes at current equity levels % of production by EBITDA**/boe Group E&P production: 775-825 kboed Total LNG offtake: 17-20 mtpa Financial outlook Cash margins of 50/boe to triple to…
Higher margins, lower capex lead to free cash flow 2012-2014 cash flow 2015-2017 cash flow Maintain strong balance sheet Invest in further growth Return cash to shareholders Includes Base assets, Brazil 15 FPSO programme, QCLNG…
Strategy in action Delivery of milestones and key growth projects Exploration and LNG strategies significant progress being made Committed to active portfolio management Sell-down of QCLNG, Cotton Valley Capital discipline…
Delivering 2013 milestones: progress to date Brazil FPSO 2 onstream Everest East expansion onstream Elgin/Franklin production re-start Brazil FPSO 3 onstream Karachaganak planned shutdown Bongkot North Phase 3K…
Australia: QCLNG Train 1 & LNG tanks 10
Australia: QCLNG milestones being delivered 2013 2014 Q1 Q2 Q3 Q4 H1 H2 Wells: 1290 1450 1600 1750 2000 wells Q1: 1286 Q2: 1499 Q3: 1700 Upstream First major water facility (Kenya) Central processing plant (Ruby) Six Field…
Brazil: FPSOs on track
Brazil: excellent flow rates on FPSOs 1-3 FPSO 1 production: 4 wells FPSO 1 producing close to capacity kboed 100 80 105 kboed from just 4 wells 60 FPSOs 2 and 3: 40 1 well producing on each FPSO 20 Flow rates of 30 kboed 0…
Brazil development programme 15 FPSO programme (BM-S-9 & 11) Operators 15 FPSO programme Schedule & gross capacity (kboed) FPSOs 4 and 5 on track; onstream in 2014 70% and 65% complete, respectively FPSO 5 in Brazil for topsides…
Lula & Iara development plan growth FPSO capacity (mmboed) Lula: potential further development (BM-S-9 & 11) Studies on-going for additional FPSOs Northern & southern wells and EWT data in 2013/14 Iara: potential further development…
Exploration: levers for success Wide geological People Robust screening expertise & culture process Fast decision Speed in execution Active portfolio making; of E&A programme management commercial agility 16
Wide geological technical expertise Carbonates Proven: Brazil, Kazakhstan, Tunisia, India New: Kenya, Honduras Tertiary Deltas Proven: Trinidad and Tobago, Egypt, Thailand New: Tanzania HPHT Proven: UK, Kazakhstan New:…
Substantial exploration progress in 2013 Tanzania Brazil Successful E & A programme Sagitrio discovery Highly successful DSTs Iara-4 appraisal well New basin entry Barreirinhas Honduras Uruguay Honduras licence approved 80%…
Exploration 2013-15 activity Norway Existing hubs UK New basin entry USA Egypt Honduras Thailand Trinidad &Tobago Kenya Bolivia Tanzania Australia Brazil Madagascar Uruguay Exploration spend: Drill 50-60 conventional…
LNG strategy Competitively Flexible High value priced resources portfolio markets Deep knowledge & relationships in high value markets Portfolio of competitively priced resources Flexibility to supply markets from multiple…
Continued progress in LNG Long-term sale to Gujarat State Petroleum Corporation First commercial cargo delivered to Singapore Now delivered to 25 of 27 LNG import markets Sabine Pass progressing towards start-up Non-FTA approval…
Conclusions BG committed to delivering industry leading growth in shareholder value Strategy is clear and being executed Delivery of growth projects is on track and on budget Will deliver improved margins, cash flow and returns…
Sanford C. Bernstein Strategic Decisions Conference Chris Finlayson, Chief Executive 1 October 2013
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