Oil Search Limited ARBN 055 079 868 Macquarie Australia Conference Oil Search Update May 2015 ASX: OSH | POMSoX: OSH | US ADR: OISHY www.oilsearch.com
2014 ? transformational year for Oil Search ? 2014 marked successful delivery of landmark PNG LNG Project: ? Smooth Project commissioning and start-up ? Ramp-up to full capacity completed ahead of expectations, now consistently…
2015 onwards ? adapting to the new oil price environment ? Size and speed of oil price fall was unexpected ? Led to a reassessment of 2014 major Strategic Review. Key conclusions: ? OSH is in strong position to manage lower oil…
2015 onwards ? adapting to the new oil price environment ? Size and speed of oil price fall was unexpected ? Led to a reassessment of 2014 major Strategic Review. Key conclusions: ? OSH is in strong position to manage lower oil…
Adapting to the new oil price environment ? ?Plan for the worst, hope for the best?: ? Lower for longer approach ? Planning on basis that oil prices will be materially lower than over past five years ? 2015 work programmes…
PNG LNG Project ? performing ahead of expectations ? PNG LNG Project ? a major success story: ? Delivered ahead of expectations and within revised US$19bn budget: ? Condensate production commenced late March 2014, with first sales…
5 0 10 15 20 25 30 2011 2012 2013 2014 2015F Net Production (mmboe) PNG LNG (T1 + T2) Hides GTE SE Mananda Gobe Moran Kutubu 19.27 26 - 28 20 - 21 6 - 7 2015 production outlook 6 1 LNG sales products at outlet of…
Key focus for OSH is commercialising PNG?s undeveloped gas ? PNG LNG Project has delivered strong platform for growth ? PNG can deliver at least two more LNG trains underpinned by existing undeveloped resources and third train with…
Ample market potential: global LNG demand forecast to nearly double over next decade 8 Global Gas Demand by Region and Supply Type Source: ExxonMobil, The Outlook for Energy, Dec 2014 Macquarie Australia Conference Oil Search Update…
Many LNG projects have been proposed to satisfy this growth, but?. 9 Source: Wood Mackenzie, 4Q 2014 ? Many proposed greenfield LNG projects are not economic at US$50/bbl without reductions in capital costs ? LNG from PNG may find…
NW Hub: LNG expansion and power MoU signed ? ExxonMobil PNG Limited (as operator of PNG LNG and PRL 3) and PNG Government signed MoU in January 2015: ? P?nyang to provide long-term gas resources to support domestic power and…
Gulf Hub: PRL 15 (Elk/Antelope) appraisal 11 ? Comprehensive appraisal programme underway, with initial results encouraging: ? Antelope 4: ? Located ~1 km south of Antelope 2, testing southern part of structure ? Within reservoir,…
Antelope 5 initial well test Oil Search Update - April 2015 12 Photos Source: InterOil
PNG gas exploration activities ? Focus of 2015 PNG exploration and evaluation programme will be: ? Addressing material gas prospects to support PNG LNG expansion or additional trains: ? Attractive gas opportunities in areas around…
Appraisal of Taza in Kurdistan ongoing ? Continued focus on defining field size and maximising value ? Appraisal programme underway: ? 630km2 of 3D seismic completed late 2014, processing nearly finalised ? Taza 2 ? 10km NW of Taza…
Contributing to long-term sustainability in PNG ? Government cash flows impacted by oil price fall. However, landowners and community expectations have not changed ? Partnership between Government and private sector vitally important,…
Cash Flow Priorities 16 Available Cashflows After scheduled debt servicing, expenditure required to sustain business operations and commitments Dividends Payment in accordance with new dividend policy (35 ? 50% payout ratio on core…
Summary ? PNG LNG Project delivered ahead of schedule and within revised budget: ? Major impact on production and cash flows, even in lower oil price environment ? Successful delivery demonstrates major capital projects can be…
? Established in Papua New Guinea (PNG) in 1929 ? Market capitalisation ~A$12bn (US$10bn) ? Listed on ASX (Share Code: OSH) and POMSOX, plus US ADR programme (Share Code: OISHY) ? Operates all PNG?s currently producing oil…
Appendix 2: Oil Search Licence Interests, PNG 19 PNG LNG Project Gas Fields PNG LNG Project Facilities Non PNG LNG Gas/Oil Fields Oil Field Gas Field Oil Pipeline Gas Pipeline Oil Facility Gas Facility OSH Operated OSH…
Loading...
