COMPANY UPDATE October 2017 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
INTRODUCTION OIL SEARCH LICENCE INTERESTS Established in PNG in 1929 29% interest in PNG LNG Project, operated by ExxonMobil, 60% interest in PNGs producing oil fields, operated by Oil Search Pursuing major LNG growth…
PNG PRODUCTION PNG LNG PROJECT PERFORMING WELL ABOVE EXPECTATIONS Outstanding performance by PNG LNG since it came onstream in mid-2014: Hides Record annualised production rate Angore achieved in 3Q17 of 8.6 MTPA (25% above…
PNG PRODUCTION MARKETING OF UP TO 1.3 MTPA PROPOSALS UNDER EVALUATION 6.6 MTPA sold under 20 year take-or-pay contracts EXISTING MARKETS FOR CONTRACTED with JERA, Osaka Gas, Sinopec and CPC, with LNG VOLUMES balance of production…
PNG PRODUCTION OPPORTUNITIES BEING MATURED TO MITIGATE OIL FIELD DECLINE Juha North Muruk Production from mature Papua New Guinea oil fields being actively Juha Hides Hides Kutubu managed Angore Port Moresby In-field…
PNG PRODUCTION ON TRACK TO DELIVER 2017 PRODUCTION AT UPPER END OF GUIDANCE RANGE 2017 FY production forecast of 29.0 30.5 mmboe: OIL SEARCH NET PRODUCTION (MMBOE)1,2 35 PNG LNG (T1 + T2) Production 2017 Guidance1 Hides GTE…
GAS DEVELOPMENT ROBUST PLATFORM FOR LNG EXPANSION PROVEN SOURCES OF GAS FOR EXPANSION THROUGH PNG LNG PLANT SITE 10 tcf undeveloped gas from On-trend prospects Elk-Antelope and Pnyang plus potential additional low cost gas Muruk…
GAS DEVELOPMENT STRONG LONG-TERM GLOBAL LNG MARKET FUNDAMENTALS ASIAN DEMAND (MTPA) LNG importing countries/LNG buyers expected to grow to 100 by 2020: 364 Traditional exporters as buyers for domestic requirements eg 243 Indonesia…
GAS DEVELOPMENT MARKET FOR GLOBAL LNG SUPPLY FROM 2023, POSSIBLY EARLIER GLOBAL LNG SUPPLY DEMAND BALANCE Entering into period when LNG capacity exceeds demand 600 Operational LNG Projects However, only 7.2 MTPA of new LNG New…
GAS DEVELOPMENT SUBSTANTIAL RESOURCE BASE TO UNDERPIN 8 MTPA NEW CAPACITY AT PNG LNG PLANT SITE Final appraisal well, Antelope 7/7ST1, completed in February. No change to Resource 1C 2C OSH resource estimate of 6.5 tcf in Elk-Antelope…
GAS DEVELOPMENT US2-3BN COST AND US125M ANNUAL OPEX SAVINGS FROM COOPERATIVE LNG EXPANSION Discussions on LNG expansion progressing Key issues being discussed: between ExxonMobil, Total and OSH. Confirmed intent to pursue integrated…
GAS DEVELOPMENT MATERIAL PROGRESS ON KEY LNG EXPANSION WORK STREAMS 2017 2018 Commence technical Finalise location of Elk- Spud Pnyang S2 well studies and commercial Antelope CPF (4Q17) discussions on integration Completion…
EXPLORATION / APPRAISAL WORLD CLASS ACREAGE, WITH MULTIPLE MATERIAL PLAYS TO SUPPORT LNG GROWTH Pnyang Muruk Focused licence acquisition programme: 16+ licences and manageable programme NW Highlands Trend capture and high-graded…
EXPLORATION / APPRAISAL MATERIAL GAS DISCOVERY AT MURUK, BETWEEN HIDES AND PNYANG Muruk 1 and sidetracks have discovered two new SW Muruk NE hydrocarbon pools (Muruk A & B) with 1 3 tcf potential: 780 metres highest to lowest known…
EXPLORATION / APPRAISAL MURUK DISCOVERY MATERIALLY UPGRADES HIDES PNYANG TREND PPL Four additional multi- tcf prospects being matured, each 1- 3+ tcf mean unrisked Koki Blucher NaDia Karoma 10 tcf+ unrisked potential along…
EXPLORATION / APPRAISAL DIVERSITY OF HIGH POTENTIAL PLAYS IN EASTERN FOLDBELT AND OFFSHORE Eastern foldbelt Eastern Fold Belt opens up potential for multiple Antelope look-alikes and diversity of plays: Multiple Antelope…
PNG ISSUES PNG GOVERNMENT UPDATE In August, Hon. Peter ONeill returned as Prime Minister, leading coalition government Governments 100 Day Economic Stimulus Plan focused on ensuring sound macroeconomic and fiscal management,…
PNG ISSUES SOCIAL RESPONSIBILITY AND MAINTAINING A STABLE OPERATING ENVIRONMENT Long-standing commitment to operating responsibly and to sustainable development in PNG, both directly and through Oil Search Foundation, with focus on…
SUMMARY CONCLUSION Excellent performance from operations: INDICATIVE LNG PRODUCTION PROFILE WITH PNG LNG operating 25% above nameplate EXPANSION (MTPA) 18 Additional capacity supported by significant 1P and 2P reserve 16…
APPENDIX 2017 FULL YEAR GUIDANCE 2017 CAPITAL COST GUIDANCE (US295 340M) Production 2017 Guidance1 2,000 Oil Search operated 5.5 6.2 mmboe2,3 1,750 PNG LNG Project: 1,500 LNG 102 105 bcf Power 0.62 0.65 bcf 1,250 Liquids 3.3 3.6…
COMPANY UPDATE OCTOBER 2017 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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