EURASIA DRILLING COMPANY LTD Cowens Ultimate Energy Services Conference New York, USA 3-4 December, 2013 1
Agenda 1. Russian Drilling Market 2. History 3. Results 4. Outlook 3
Steady Market Oil & gas industry is ca. 50% Country revenues 7-10% drilling growth to sustain oil production Growth of Horizontal wells (2012: 12% 2013 YTD: 19%) Greenfield sites: complex operations, logistics and geology Offshore…
Aging Rigs Deeper Wells 60% rigs 20 years (dead at 25) Russian Rig Fleet by Age EDC Total Russian Fleet Avg Age 12 16 20y…
Whats different in Russia Russia Rest of World Long Term contract model Spot market Lower volatility of pricing and margins Higher pricing & demand volatility Historically Turnkey Dayrate Optimal for simple drilling solutions…
Agenda 1. Russian Drilling Market 2. History 3. Results 4. Outlook 7
EDCs History 2004 Lukoils Drilling Department Russia 2006 Lukoils ASTRA Jackup Caspian Sea Schlumberger 28 Workover rigs Russia 2007 IPO on London Stock Exchange Lukoils 213 Workover rigs Siberia 2009 Drilling…
EDCs Business 9M 2013 Russia Land Drilling & Sidetracking (255 rigs) Russia Land Workover (415 rigs) Caspian Sea (3 jackups & 1 platform) Northern Iraq (4 rigs) 9
Agenda 1. Russian Drilling Market 2. History 3. Results 4. Outlook 10
Russian Drilling Market Growth Drilling Volumes in Russia mn m CAGR +11% 30 CAGR +7% 25.9 25 24.2 22.6 21.1 20 19.2 18.1 16.2 15.1 15.4 15 12.9 10.2 10 5 0 2005 2007 2009 2011 2013F 2015F West Siberia…
Russian Drilling Market 3Q 2013 Total metres drilled 16.5 million +5.5% Horizontal metres 3 million +61.5% Rosneft (27% market): Total metres drilled 4.4 million -1.1% Horizontal Metres 0.98 million +45.2% SurgutNeft (24% market):…
EDC Results 9M 2013 The largest drilling company in Russia and the CIS 9M 2013 Change Revenues* US 2.6 billion +9.5% EBITDA margin* 26.9% +1.3 pp Market share c. 29% by meters drilled (Russia onshore) no change Operating…
Agenda 1. Russian Drilling Market 2. History 3. Results 4. Outlook 15
2013 Guidance Revenue US 3.55 billion EBITDA margin 26.9% Capital Expenditure US 550 million 16
Offshore developments - Caspian Sea LUKOIL 8 discoveries Russian Kazakh Turkmen Exploration 3% of world oil reserves Potentially 7-8 Russian Turkmen JUs Development ASTRA SATURN 4x JU rigs currently operating Barriers to…
Rig Fleet EDC is to maintain a competitive drilling fleet EDC Drilling Rig Fleet EDC Rig Fleet by Type Type Draw works Total % of total Mechanical 44 17.0% Mobile Electric 2 0.8% All types 46 17.8% Mechanical 39 15.1% Stationary…
EDC Rig Strategy EDC fleet spread now . And expected in the future EDC Rig Fleet by age (current) EDC Rig Fleet by age (by 2015) 19% 33% Up to 5 years 34% Up to 5 years 5-10 years 38% 3% 5-10 years 10-15 years 10-15 years…
Capital Expenditures Capex program focused on evolving fleet to meet the most demanding and complex customer needs apex, mn EDCs CAPEX programme: Capex/ 21% 16% 8% 16% 14% 19% 11% revenues 1. Acquisition of new rigs both Russian…
Northern Iraq (Kurdistan) Pipeline & metering in place, 1st oil Q1 2014 Potential to double number of rigs 21
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