AGENDA TOPIC PRESENTER I. Introduction and Welcome Nick Cooper II. Overview of Fortuna Project Bill Higgs III. Subsurface Simon Smith IV. Development Philip Dobson V. Midstream Solution Golar LNG Gary Smith VI. Commercial…
INTRODUCTION Nick Cooper CEO Slide 6
STRATEGY Positioned to thrive in uncertain times VALUE CREATION THROUGH EXPLORATION FOCUS ON ROCE THROUGH CAPITAL ALLOCATION AND COST MANAGEMENT ACTIVE PORTFOLIO AND RISK MANAGEMENT Capital Markets Presentation - Fortuna…
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…
WHY PROGRESS WITH FORTUNA FLNG Many other developments are not reaching FID Many options available back fill, terrestrial LNG, floating LNG World class asset delivering attractive economics - World class resource high quality clean…
FORTUNA FLNG PROJECT HIGHLIGHTS World class resource Globally Competitive Project 14.00 3.7 Tcf, shallow, high quality reservoirs FOB Cost (Breakeven) (/mmBtu) Shipping Cost (/mmBtu) Clean, dry gas 12.00 Minimal processing required…
KEY PROJECT DATAPOINTS Recoverable Base Case 3.7 Tcf Resources 720 mmcf/d plateau (120 mboe/d plateau) Wellhead Gas Production Punta Europa LNG Terminal 882 mmcf/d peak (147 mboe/d peak) LNG Production 4.4 mmtpa plateau…
WHY FLOATING LNG Biogenic Gas Resource 99.7% methane simple gas-to-LNG processing requirements Negligible water to handle Benign Metocean Conditions Side-by-side offloading High uptime Water depth Block R is located in water…
COST COMPARATORS No two FLNG projects are the same Nearshore solutions Shallow Hydrocarbon Benign Low cost vessel Proximity to 2+ reservoir composition sea state solution markets Fortuna FLNG Capital Markets Presentation -…
ADVANTAGES OF A CONVERSION Low cost, quick delivery, value enhancing Low Capex to First Gas for Upstream Participants 0.8bn of Upstream capex to first gas c.1.5bn of Midstream capex payable by Golar Speed of delivery 3 years after…
SIMPLE CONTRACTING STRATEGY EPCIC Owners Inspection, Hook-up Engineer in Detailed Fabrication / Maintenance WBS Assets / Activity FEED Procure Installation & pre- Start Up Operations support of Design Construction & Repair…
OPHIR DRILLING Proven expertise as upstream operator Senegal 2011 1 well Operated 22 deepwater wells 2,650m WD Best in basin on both sides of the continent Lykos Leading African deepwater explorer Ghana Best in Basin 2013…
MILESTONES Project delivering to schedule May 2015 Charter Term Sheet agreed with Golar for Oct 2014 provision of leased FLNG vessel Flow tested gas Surpassed threshold volumes Jun 2015 Launched offtake process Mid-2019…
SUBSURFACE Simon Smith Equatorial Guinea Asset Manager
BLOCK R Ophir 80% operated interest, GEPetrol 20% interest Block R in Equatorial Guinea is located in Entered into Block R PSC in 2006 the south-eastern part of the Niger Delta Currently covers 2,051km2 complex Close to numerous…
REGIONAL GEOLOGICAL SETTING Block R lies at the frontal toe-thrust zone and frontal deformation zone between the main Niger Delta and NW- SW trending Cameroon volcanic line Capital Markets Presentation - Fortuna FLNG…
DRILLING HISTORY AND DISCOVERIES Development includes 6 commercial discoveries Well Name Operator Year TMD WD (m) Result (mRT) Oreja Marina-1 ExxonMobil 2001 3,535 1,417 Gas Estrella de Mar-1 ExxonMobil 2002 3,202 1,433 Gas…
FORTUNA Discovered in 2008, appraised in 2012 & 2014 4 well penetrations 58m of core Fortuna Top Reservoir Depth Map 1 DST (Fortuna-2, 2014) GWC: 2561.7mTVD - 60 mmcf/d achieved on fixed 2 choke with a steady WHFP of c.2,100 psi…
VISCATA Discovered in 2008/2012 3 well penetrations Viscata Top Reservoir Depth Map Preferred depositional model: channel levee GWC: 2748mTVD system Water Depth: 1710-1840m Reservoir Depth: 1000m Area: 70km2 (P50) Column…
TONEL Discovered in 2012 One well penetration Tonel Top Reservoir Depth Map 18m of core Preferred depositional model: Confined, erosional, Low Sinuosity Channel-fill and spill Water Depth: 1520-1630m Reservoir Depth: 1000m…
SILENUS HUB Thrust Belt Accumulations Three drilled discoveries: - Estrella de Mar-1 (2002) Silenus Hub - Lykos-1 (2008) Amplitude Map - Silenus East-1 (2014) Preferred depositional model: semi-confined laterally coalescing…
SUBSURFACE SUMMARY ERCE CERTIFIED ERCE certified numbers Tcf (100% Basis) BASE CASE Low cost and simple: Fortuna 1.52 High permeability and porosity Viscata 0.42 - Fewer wells and standard drilling techniques Tonel 0.50 High…
DEVELOPMENT Philip Dobson Project Manager
SIMPLE CONTRACTING STRATEGY Playing to Ophirs strength EPCIC Owners Inspection, Hook-up Engineer in Detailed Fabrication / Maintenance WBS Assets / Activity FEED Procure Installation & pre- Start Up Operations support of Design…
OVERALL DEFINE PHASE STRUCTURE Leveraging expertise of industry leading partners and contractors UPSTREAM Worley Parsons contracted April FEED Contractor 1 2015 Upstream FEED Owners Engineer Upstream Operator commenced July…
DEVELOPMENT OVERVIEW JUST 4 development wells for first gas - Includes contingency of 1 Well Upstream Standard subsea infrastructure Development - Manifold, Flowlines, Risers Four phase development with a total of 17 wells…
KEY PARAMETERS 4 phases of development Daily Production, mmcf/d (100% Basis) Subsea gathering system to dual risers 700 Vessel 1 600 Vessel 2 440 mmscfd design flowrate to match FLNG 500 nameplate of c2.6-2.8 mmtpa 400 360 mmscfd…
WELLS PHILOSOPHY Wells planned and executed according to Ophir's Drilling Management System (DMS) & Engineering Process Governance Wells designed in accordance with Ophir's Well Integrity Standard Use of an experienced and proven…
WELL DESIGN Drilling Strategy Equatorial Guinea Block R Development Fortuna Conceptual Well Schematic 2 and 3 string well designs proposed 5 HXT 2 String: 36 Conductor x 13-5/8 Surface Casing WD: 1,815 m All depths are mTVD BML…
SUBSEA INFRASTRUCTURE Subsea specifications subject to FEED outcomes Xmas 5-inch Horizontal Xmas Tree (HXT) Trees Pressure rating 5,000 15,000psi Simple concept SPS Manifold to individual Wells via jumpers Meg injection via…
FROM TREE TO TURRET External turret production to maximise offloading availability Capital Markets Presentation - Fortuna FLNG Resources Upstream Midstream Marketing Financials Slide 38
UPSTREAM/MIDSTREAM INTERFACE Minimum project specific ETP, External inlet facilities Turret Production Capital Markets Presentation - Fortuna FLNG Resources Upstream Midstream Marketing Financials Slide 39
PROJECT PHASING Base Case 20 Phase 1 Phase 2 Phase 3 Phase 4 2018 (pre-first gas) 2024 2027 2030 18 Four wells to be drilled pre-first gas for Phase 1 16 - Only two expected to be required to achieve 4 2.2mmtpa plateau 14…
UPSTREAM DEVELOPMENT SUMMARY Simple development Using proven technology Minimum interfaces Front end loading in accordance with AACE and industry standards Delivered by world class contracting companies Bench-marked cost and…
MIDSTREAM - GOLAR Gary Smith CEO, Golar LNG
Ophir Capital Markets Day Midstream Solution GoFLNG Gandria 43
Transitioning to Integrated LNG Mid-Stream Player Our strategy and investment proposition from 2015 and beyond Golars strategic intent: integrated LNG mid-stream services Developed GoFLNG floating liquefaction concept. provider:…
Golars Portfolio Slide 45
Four Successful FSRU Conversions Golar Spirit Golar Winter Golar Freeze Nusantara Regas Satu Operational Operational Operational Operational 1981 Built / 129,000 m3 2004 Built / 138,000 m3 1976 Built / 125,000 m3 1977 Built /…
Perencos FLNG project in Cameroon Sanaga gas fields: 500 bcf of natural gas reserved for export. Benign, shallow water, offshore Kribi. Lean associated feedgas. Potential for extension of feedgas volumes and project life. Project:…
GoFLNG Concept & Key Philosophies Conversion of Moss type LNG carrier. Sponson structures added to the sides as integral structural sections providing space and deck area for process and utility systems. Extensive refurbishing and…
Process Overview Slide 49
Liquefaction Technology Prico Technology is based on a Single Mixed Nameplate liquefaction capacity from 0.5-0.7 mtpa Refrigerant liquefaction technology. (depending mainly on inlet pressure, feedgas Proven at 25 plants world wide and…
Four Train FLNG Vessel Starboard View Refrigerant make-up, boil-off compression, endflash Dehydration and mercury removal Marine Loading Arms Amine absorption for acid gas removal Slide 51
Four Train FLNG Vessel Port View Accommodation for max 118 POB Transverse pipebridges 4 Prico SMR trains with waste heat steam generator Alternative mooring concepts, e.g. submerged yoke Slide 52
Sponson Structures Design and functionality: Fully welded and integral part of the hull. Structural alignment with existing hull applied where possible (i.e. flush and continuations). Providing footprint area for process systems,…
FLNG Hilli Sponson Integration Ongoing Sponson Block S4 arriving to DryDock Sponson Block P4 in Dry Dock Sponson block P4 integration to hull Sponson block P4 & S4 integration Slide 54
Project / Field specific modifications Main topics for modification of project specific verification: Mooring. Riser system. Metocean conditions. Feedgas compositions. Inlet systems and conditions (pressure, temperature,…
LNG Offloading Max rate: 10,000 m3/h Ship-to-ship LNG transfer at Golar FRSU projects Vapour return handled by FLNG vessel 4 Marine Loading Arms (2 x liquid, 1 x vapour, 1 x dual/spare) LNG Offloading Side-by-side mooring Yokohama…
Hilli Peer Review October 2015 Terms of Reference: evaluate the design, layout, interconnections with existing ship systems, documentation, and governance of the project with particular reference to the operability, maintainability…
BREAK Slide 58
COMMERCIAL & MARKETING Andy Arnold Director - Commercial
GLOBAL LNG SUPPLY DEMAND Scope for new capacity to be absorbed Estimated LNG Supply v Demand 2000-2024 700 Unsanctioned projects suggest a potential oversupply this is always the case Supply - operational projects Supply -…
GLOBAL LNG SUPPLY RESPONSE IN 2015 Scale, sponsorship and commercial simplicity Larger projects planning to take FID in 2015 are delayed, struggling to find buyers or reengineering to smaller scale Douglas Channel 0.6 mmtpa FID in…
FORTUNA FLNG - OPHIR RESPONSE TO THE MARKET Commodity price slump creates challenging conditions for LNG projects Sharp decline in global oil prices and LNG prices Reduction in Asian growth coupled with corresponding price…
ROBUST COMMERCIAL STRUCTURE UPSTREAM PSC MIDSTREAM LNG BUYERS LEASE AND OPERATE EUROPE/ASIA TOLLING MODEL NETBACK DES FOB CASHFLOW GAS / LNG FLOW Capital Markets Presentation - Fortuna FLNG Resources Upstream Midstream…
STRAIGHTFORWARD AGREEMENTS FRAMEWORK Existing agreements: PSC gas terms agreed Upstream EPCIC EPCIC Agreement Contractor JOA PSC New agreements: State Long Term Umbrella Agreement JOA LNG Sale & Buyer 1 Purchase - Fiscal…
FOCUSED MARKETING STRATEGY European Market (NBP/TTF) with diversion profit sharing Conventional oil indexation End Users Traders Aggregators Hold European Value driven Access to New Secure investment capacity - oil…
EUROPEAN SINK CONTRACTING STRATEGY (INDICATIVE PRICES) UPSTREAM LNG BUYERS SHIPPING MIDSTREAM PSC PRICE: BASE CASE 7/mmBtu COST: COST: NETBACK 1.9/mmBtu 2.8/mmBtu 2.3/mmBtu EUROPE REGAS & LIQUEFACTION NETBACK…
COST COMPARISON: US V EG 8 Fortuna will be a low cost supplier into FOB Breakeven into Europe (NPV10) European market 7 Liquefaction costs are comparable Liquefaction 6 Fortuna is cheaper at the well-head v Henry Hub Upstream…
TARGETED MARKETING PROCESS Selected Negotiation Sept 2015 Final SPA Negotiations Finalising Market Scoping Heads of Agreement Full draft discussion From June 2015 Jan 2016 Traders 10 Traders - 3 Engagement End Users End Users…
MARKETING SUMMARY Fortuna FLNG attractive to LNG buyers FORTUNA FLNG Speed of execution Right project partners means marketing can break the mould Cost competitiveness Low upfront costs combined with phased development…
PROJECT FINANCIALS Tony Rouse CFO
KEY FIGURES Robust at current commodity prices; highly levered to upside in commodity prices Gross upstream capex to 1st gas 800 million Life of field opex (upstream) 476 million / 0.14 per mcf / 0.80 per boe Plateau production…
CAPEX 201618 Subsea capex relates to the EPCIC contract to be awarded to the successful FEED partnership Drilling CAPEX assumptions reflect conservative estimates based on forecasted 2017-18 rig rates Ophir expects final drilling…
UPSTREAM OPEX Opex of 0.14/mmBtu (0.80/boe) million (100% Basis, 2015 real, phases 1 4) BASE CASE Well replacement(s) 132.2 Well workover(s) 162.3 Planned inspections 83.9 Planned maintenance and contingent repairs 98.0 Total…
FINANCIAL FLEXIBILITY Low level of commitment spend, robust production base Strong cash position Guidance of 650 million of cash on balance sheet at YE 15 Reducing capex to maintain balance sheet strength 2016 capex guidance of 175…
FUNDING FORTUNA FLNG Multiple options, not reliant on any one source Up to 40% W.I. farm-out: PROJECT reduces capex by 320 million EQUITY contribution against past costs of 600 million 640 MM net cost to first gas (expect…
FUNDING SUMMARY Balance sheet strength Drive to reduce capex and cost across the business Financial flexibility in a low oil price environment Incremental debt finance Fortuna offers robust project economics Low capex to first gas…
SUMMARY Bill Higgs COO
SELF FUNDING DEVELOPMENT ASSETS No fresh capital deployed to development Not all barrels are equal We explore for high quality barrels that generate cash in a low price environment Project equity is a source of capital SELF FUND…
MILESTONES Project delivering to schedule May 2015 Charter Term Sheet agreed with Golar for Oct 2014 provision of leased FLNG vessel Flow tested gas Surpassed threshold volumes Jun 2015 Launched offtake process Mid-2019…
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