Macquarie US Roadshow September 2015 Oil Search Limited ASX: OSH POMSoX: OSH US ADR: OISHY ARBN 055 079 868 www.oilsearch.com
Oil Search Profile Established in Papua New Guinea (PNG) in 1929 29% interest in world class PNG LNG Project, operated by ExxonMobil, and 60% interest in all PNGs producing oil fields, operated by OSH Tunis Erbil TUNISIA IRAQ…
Oil Search licence interests, PNG Juha Pnyang JuhaPPL260 North PNG LNG Project Gas Fields Papua New Guinea Hides Hides PNG LNG Project Kutubu Facilities Angore Port Moresby Moran Non PNG LNG Agogo Gas/Oil Fields Proposed…
2015 Half Year Highlights Net profit up 49% to US227.5 million, driven by 1H15 1H14 near tripling of production Operating cash flow more than double 1H14 Production (mmboe) 14.3 5.4 Interim ordinary dividend tripled, from 2 US cents…
PNG LNG Project producing consistently above nameplate capacity 52 LNG cargoes exported in 1H15, 120 cargoes loaded to date since Project start-up in 2014 Annualised production in 1H15 of 7.1 MTPA, Qingdao LNG compared to nameplate…
Solid demand for PNG LNG spot cargoes Full contractual volumes being taken, with ramp-up underway to plateau of 6.6 MTPA in 2Q16 Good demand for spot volumes, 85% of spot cargoes have been sold to contract customers PNG LNG product…
2015 Production Outlook 2015 production guidance increased to Net Production (mmboe) 27 29 mmboe, comprising: 30 PNG LNG (T1 + T2) 27 - 29 6.3 6.9 mmboe from operated oil fields and Hides Hides GTE GTE* 25 SE Mananda 21 22 mmboe…
Next phase of LNG development in PNG OSH holds material positions in NW Hub OSH Operated OSH Interest (Pnyang field) and Gulf Hub (Elk-Antelope Oil Pipeline Oil Field field), likely sources of gas for next phase of Gas Pipeline…
NW Hub: PNG LNG expansion and domestic power MoU signed by ExxonMobil PNG Limited (as operator Pnyang of PNG LNG and PRL 3) and PNG Government in January 2015 MoU sets schedule to develop Pnyang gas field, to underpin: Muruk PNG…
Pnyang South 2 appraisal well to further constrain 1C and 2C resource Pnyang 1X PPL 421 PPL 294/APPL 507 Pnyang 2X Pnyang South 2 PPL 269 PRL 3 Pnyang 1X Pnyang 2X Pnyang South 1 Pnyang South 2 PPL 464 PPL 395 0 4…
Gulf Hub: Papua LNG Project facilities site locations agreed, operator transition to Total SA completed Potential second world-scale LNG development in PNG Papua New Guinea CPF Kutubu Hides Elk/Antelope Significant progress…
Elk-Antelope appraisal programme to be completed 2H15, certification 2Q16 Results of appraisal programme to date have been at upper end of OSHs expectations: Antelope 4 extended good quality reservoir to south Antelope 5 testing…
Window for uncontracted LNG demand expected to re-emerge early next decade Global LNG contracted 120 Delta between forecast demand and supply and demand balance long-term contracts East of Suez 500 Mideast 100 Global Demand India…
LNG projects from PNG competitive versus Australian and global alternatives (WoodMac) 20 LNG project break-even comparison 15 US/mmBtu 10 5 0 FOB Shipping Source: Wood Mackenzie, full-life breakeven, 12% discount…
Oil Search exploration: Revitalising acreage and drilling programmes OSH estimates Yet-to-Find potential of 5 bnboe in PNG Potential PNG resource base* Focus on building PNG acreage to support: Producing LNG expansion and potential…
Active 2H15/16 PNG exploration/appraisal programme proposed PPL 402 Muruk 1* PRL 3 Pnyang reserves evaluation Pnyang South 2* PPL 269 Strickland 1* Well 2* PRL 15 Antelope 4 ST1 Antelope 6* Antelope South* PPL 339…
Measured appraisal of Taza in Kurdistan Taza 3D Seismic Cube Taza 1, 2 & 3 Three wells and 680km2 3D seismic survey completed unfractured Currently evaluating field size and economics based on well region and seismic results Taza 2…
2H15/16 Exploration and Appraisal Programme 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 PNG Highlands Activity PRL 3 (OSH - 38.5%) P'nyang South 2 and other possible appraisal activities* ** PPL 269 (OSH - 10%) Strickland 1 PPL 269 Well 2* PPL…
Business environment outlook Oil market appears oversupplied into 2016, inventories Brent Oil Price Forecasts to 2025 remain at record levels 120 Falling oil prices impacting LNG prices and markets 110 Lower for longer pervasive in…
Business Optimisation Key focus areas Refocus organisation on core strategic priorities and value creation Ensure we make best use of resources, including our people, to deliver priority projects Take advantage of current business…
Summary of expected outcomes Targeting US17 - 23m net reduction in annual operating costs from 2016 onwards*. Equivalent to US2.50-3.50/boe on operated costs (US16/boe in 1H15) or US0.70-0.80/boe incl LNG OSH-controlled spend reduced…
Key milestones* 2015 2016 2017 PNG LNG Project/Expansion PNG LNG Project/Expansion PNG LNG Project/Expansion Continued operation above nameplate Drill Pnyang South 2 Resource certification of Pnyang and capacity of 6.9 MTPA Target…
Summary Strong production, with excellent performance from PNG LNG Project and steady output from operated PNG fields: PNG LNG performing above nameplate capacity with further upside potential to create material additional value High…
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