EMERGING MARKET GAS Numis Conference 5th October 2015
CONTENTS 1. Portfolio Overiew 2. LNG Market Overview 3. Overview of Fortuna FLNG and Tanzania LNG projects 4. Fortuna FLNG development plan and gas sales strategy 5. Funding strategy 6. Summary Emerging Market Gas - Numis…
LARGE RESERVES AND RESOURCE BASE Focus: Commercialising our gas resources Reserves (MMboe) 1P 2P 3P Significant 2P reserves base from Thai and Indonesian assets Bualuang 17.6 24.9 31.1 60 MMboe 2P over 10 years of production at…
GLOBAL LNG SUPPLY DEMAND Scope for new capacity to be absorbed Estimated LNG Supply v Demand 2000-2024 700 Unsanctioned projects suggest a potential Supply - operational projects oversupply this is always the case Supply -…
TANZANIA LNG World class resource with major partners Basin opening exploration success Resource supports 2 train LNG project Mark to market from Pavilion deal Strong JV partners Cost Competitive Realised Return on Capital…
EQUATORIAL GUINEA Resource underpins FLNG development concept Oreja 3.4Tcf (2C and P50 PR) Marina Underpins 2.2mtpa for 20 years Tonel 330 mmcf/d at plateau Estrella Del Mar Fortuna well test flowed at 60 Silenus East…
COST COMPETITIVE ON A GLOBAL BASIS Ophirs projects relative to other unsanctioned LNG projects 14.00 FOB Cost (Breakeven) (US/mmBtu) 12.00 Shipping Cost (US/mmBtu) 10.00 NPV 10% Break Even DES Japan 8.00 6.00…
LNG OVERVIEW Four key things required to make an LNG project work EQUATORIAL GUINEA TANZANIA 1 RESOURCES 3.4 TCF 2.2 Mtpa project 15 TCF 3 trains of LNG 2 FISCAL TERMS Agreed Agreed 3 JV PARTNER ALIGNMENT Ophir &…
FLNG IS RIGHT SOLUTION IN EG Upstream component within Ophirs ability to operate Why FLNG appropriate solution Fortuna Gas Field DST Biogenic gas, 99.7% methane clean and simple Benign meta-oceanic conditions Why Ophir can be the…
FORTUNA LNG - PROJECT PRINCIPLES Prerequisites for successful Fortuna FLNG project Establish and Upstream demonstrate full Midstream support & alignment Investor Buyer (Ophir/ confidence (Golar) confidence GEPetrol)…
GOLAR LNG Simple solution, proven technology Heads of Terms concluded Lower cost conversion for Phase 1 development Golar FLNG Conversion Proven concept - Cameroon FLNG project has taken FID - Golar Hilli conversion (Cameroon) 60%…
EUROPEAN SINK CONTRACTING STRATEGY (PRICES INDICATIVE) UPSTREAM LNG BUYERS SHIPPING MIDSTREAM PSC PRICE: COST: COST: NETBACK 7/mmbtu 1.8/mmbtu 3.0/mmbtu 2.2/mmbtu BASE CASE EUROPE REGAS & LIQUEFACTION NETBACK SHIPPING…
FUNDING FORTUNA FLNG Up to 40% W.I. farm-out EQUITY C.300MM back costs 40% W.I. 320MM COST TO FIRST GAS European Sink targets pre- MID 2015 purchase 700MM cash BALANCE GAS 1 year of gas sales at 40% W.I. 400MM net…
SUMMARY AND OUTLOOK Emerging market gas is a positive story for Ophir Finding costs can be cheap; require a clear path to monetisation Tanzanian LNG project we are ahead of the game and plan to realise further value Fortuna project…
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