Overview presentation Tullow Oil plc September 2016
Overview presentation OVERVIEW PRESENTATION
Overview presentation A leading global independent exploration & production company 21 319mmboe 951mmboe 305,634 2C Contingent Sq km acreage Countries 2P Reserves Resources Figures at HY 2016 Established record of delivering…
Overview presentation The Tullow strategy Additional cash flow from new production Monetisation High Margin Exploration Selective Options & Production and Development Portfolio Cash flow Appraisal Management Costs &…
Overview presentation A sustainable future production base Key production and development Countries with ongoing operations Key oil producing countries TEN field East Africa First oil achieved in August 2016 Development…
Overview presentation Well-positioned for growth Decisive action taken Financially robust Fit for new oil era Re-set to deal with Step change for Tullow Flexible portfolio with low oil prices: with TEN first oil: major growth…
Overview presentation OVERVIEW PRESENTATION
Overview presentation Proactive financial management Realising the benefits of early actions Significant cost savings Gross G&A of 215m, down 32% from 1H 2015 Net admin expenses of 69m, down 31% from 1H 2015 Good progress on…
Overview presentation Generated first half profit in a challenging environment 200 115 100 85 53 30 30 0 (68) 49 -100 63 29 m (144) 18 32 -200 IMPACT OF JUBILEE m Lower volumes (175) 109 (196) -300 30 Higher…
Overview presentation Jubilee turret insurance expectations Spread moor Install Claims Loss Root Cause FPSO Deepwater notified to adjusters Analysis Temporary Permanent Offloading insurers appointed commenced heading heading…
Overview presentation Industry leading hedge position Hedge strategy unchanged Tullow has proactively hedged production to protect revenues over the last 10 years Significant liquidity benefit through protecting future revenues and…
Overview presentation Managing balance sheet, debt diversification and liquidity Committed Debt Facilities Drawings bn Overall 1.0bn facility headroom plus free cash at mid-year 1.3bn 6 0.3 liquidity 2016 (1.3bn including the 300m…
Overview presentation Significant Capex reduction in 2017 post TEN project 2500 Jubilee Turret 2016 Capex of c.1bn Exploration Includes Jubilee turret project c.35m East Africa 2000 Final year of TEN first oil capex of c.600m…
Overview presentation Financial strategy provides flexibility for future growth Continuing to drive down Opex and G&A Significant hedging in place for 2H 2016 and 2017 Financial Capex flexibility post TEN; 2017 potential below…
Overview presentation OVERVIEW PRESENTATION
Overview presentation Significant West African oil production growth post TEN 1H 2016 West Africa oil production: 51,800 bopd FY 2016 guidance: 62-68,000 bopd Jubilee turret project impacting physical production West Africa Oil…
Overview presentation West Africa portfolio: low underlying opex and flexible capex Ghana underlying operated Opex/bbl 15 Strong underlying opex performance in Ghana Underlying Ghana opex reduced to 9/bbl in 1H 2016 10 - Contract…
Overview presentation Jubilee turret project under way Spread moor Install Identification Revised Long-term FPSO Deepwater of operating solution Temporary Permanent Offloading issue procedures designed heading heading Buoy Feb…
Overview presentation Jubilee long-term asset with flexible investment opportunities Performance in 2016 1H 2016 average gross production: 63 kbopd FY 2016 guidance: 74 kbopd (2H 2016: 85 kbopd) Gas exports continue to onshore…
Overview presentation TEN Project industry leading project execution First Oil achieved on 18 August 2016 Production steadily ramping up Project delivered on time and within budget Exceptional project delivery Focused and…
Overview presentation Firming-up Kenyas oil resources ahead of development Appraisal to continue South Lokichar resource - 750 mmbo; 1 bnbo upside Successful extended well tests in Amosing & Ngamia Water injection testing 3Q 2016 3D…
Overview presentation Progressing Ugandas Lake Albert basin development Upstream developments progressing towards FEED 30% Annual percentage life of field capex of 25% Project definition is mature; de-risked resource of 1.7 billion…
Overview presentation Portfolio with significant future production potential TEN Project delivery Industry leading project execution, first oil on 18 August 2016 Significant resource upside, low cost incremental Ghana upside…
Overview presentation OVERVIEW PRESENTATION
Overview presentation Exploring in the current environment Strategy steadily evolves Exploration continues to be central to Tullows value growth strategy Strong portfolio & attractive programmes adapted for current environment &…
Overview presentation Guyana-Suriname: excellent position in new oil province Liza-1 deepwater oil discovery significantly de-risks the basin & Tullows regional acreage Araku: 500mmbo prospect in four-way closure, good seismic…
Overview presentation Guyana: prospects up-dip of Liza-1 discovery, in shallow water Exploration activity commenced Preparing to acquire 3D seismic Jubilee-like setting up-dip of Liza oil discovery Kaieteur estimated well cost of…
Overview presentation Onshore East Africa: exploring regional oil play Location Activity Uganda Lake Albert 17+ oil fields discovered (90% success) Basin 1.7 billion barrels of oil discovered Kenya North Basin margin play…
Overview presentation Kenya: E&A drilling programme in South Lokichar Basin Material proven oil basin 9 oil accumulations discovered 750mmbo resource base confirmed by tests Significant upside potential Billion barrel basin…
Overview presentation Africa: Long-term future upside & portfolio replenishment LAKE MWERU WANTIPA BASIN Mauritania: exploration shifted to low-cost shelf-edge oil plays Zambia: extension of East African Rift Basin Play;…
Overview presentation Latin America: Significant positions in under-explored region Jamaica: early stage of frontier exploration, interpreting new 2D seismic data Guyana: attractive acreage up-dip of material Liza-1 oil discovery…
Overview presentation Exploration is central to our growth Game-changing opportunities Guyana-Suriname: low-cost, multiple prospect potential Africa: Growth options Oil prone acreage in Namibia, Mauritania and Zambia Kenya:…
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