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November 2017 Company Update – Oil Search Limited

Oil Search Limited · Nov 14, 2017 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2017 Company Update – Oil Search Limited – slide 1
    COMPANY UPDATE November 2017 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
  2. November 2017 Company Update – Oil Search Limited – slide 2
    INTRODUCTION OIL SEARCH PNG 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…
  3. November 2017 Company Update – Oil Search Limited – slide 3
    PNG PRODUCTION PNG LNG PROJECT PERFORMING WELL ABOVE EXPECTATIONS Outstanding performance by PNG LNG since it came onstream in Hides mid-2014: Angore Record annualised production rate in 3Q17 of 8.6 MTPA (25% Juha above…
  4. November 2017 Company Update – Oil Search Limited – slide 4
    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…
  5. November 2017 Company Update – Oil Search Limited – slide 5
    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 development…
  6. November 2017 Company Update – Oil Search Limited – slide 6
    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…
  7. November 2017 Company Update – Oil Search Limited – slide 7
    GAS DEVELOPMENT ROBUST PLATFORM FOR LNG EXPANSION PROVEN SOURCES OF GAS FOR EXPANSION THROUGH PNG LNG PLANT SITE On-trend prospects 10 tcf undeveloped gas from Elk-Antelope and Pnyang plus Muruk potential additional low cost gas…
  8. November 2017 Company Update – Oil Search Limited – slide 8
    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…
  9. November 2017 Company Update – Oil Search Limited – slide 9
    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…
  10. November 2017 Company Update – Oil Search Limited – slide 10
    GAS DEVELOPMENT SUBSTANTIAL RESOURCE BASE TO UNDERPIN 8 MTPA NEW CAPACITY AT PNG LNG PLANT SITE 6.5 tcf (OSH resource estimate) in Elk-Antelope fields Resource 1C 2C (tcf) OSH-operated Pnyang South 2 well commenced drilling on 22 Oct…
  11. November 2017 Company Update – Oil Search Limited – slide 11
    GAS DEVELOPMENT US2-3BN COST AND US125M ANNUAL OPEX SAVINGS FROM COOPERATIVE LNG EXPANSION Discussions on LNG expansion progressing between Key issues being discussed/decided: ExxonMobil, Total and OSH. Confirmed intent to pursue…
  12. November 2017 Company Update – Oil Search Limited – slide 12
    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…
  13. November 2017 Company Update – Oil Search Limited – slide 13
    EXPLORATION / APPRAISAL WORLD CLASS ACREAGE, WITH MULTIPLE PLAYS TO SUPPORT LNG GROWTH Pnyang Muruk Focused licence acquisition programme: 16+ licences and manageable programme NW Highlands Trend capture and high-graded drilling…
  14. November 2017 Company Update – Oil Search Limited – slide 14
    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. Located 21 km from closest…
  15. November 2017 Company Update – Oil Search Limited – slide 15
    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…
  16. November 2017 Company Update – Oil Search Limited – slide 16
    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,…
  17. November 2017 Company Update – Oil Search Limited – slide 17
    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…
  18. November 2017 Company Update – Oil Search Limited – slide 18
    NEW VENTURES ACQUISITION OF TIER 1 OIL ASSETS IN ALASKA NORTH SLOPE AT ATTRACTIVE POINT IN COMMODITY CYCLE Deadhorse Oil Search to acquire 25.5% interest in Pikka Unit and adjacent Pikka exploration acreage and 37.5% in Horseshoe…
  19. November 2017 Company Update – Oil Search Limited – slide 19
    NEW VENTURES ALASKA NORTH SLOPE ACQUISITION KEY ACQUISITION METRICS POTENTIAL DISCOVERED RESOURCES PRECEDENT TRANSACTION MULTIPLES (US/BBL)(2) Gross OSH acquisition estimate of discovered 5.5 Nanushuk & satellites fields resources…
  20. November 2017 Company Update – Oil Search Limited – slide 20
    NEW VENTURES 2018 APPRAISAL OF NANUSHUK FIELD NANUSHUK FIELD TO BE APPRAISED BY 3 WELLS IN 1Q18: 2 ConocoPhillips wells and 1 Armstrong well (6 boreholes) Well data trade in place Objectives: Confirm Nanushuk field extension…
  21. November 2017 Company Update – Oil Search Limited – slide 21
    NEW VENTURES KEY EVENTS IN ALASKA 2017/2018 4Q2017 1Q2018 2Q2018 3Q2018 4Q2018 14 December Pikka 2 appraisal Complete well EIS decision Preparation for Alaskan Strategy well plus Pikka testing of Pikka 2 Pikka appraisal Seminar,…
  22. November 2017 Company Update – Oil Search Limited – slide 22
    NEW VENTURES INDICATIVE TIMETABLE TO FIRST OIL 2018 2019 2020 2021 2022 2023 2024 Appraisal FEED Development Production 2017/18: 1 appraisal Contracting Drilling 60+ producers & 60+ injectors from 3 drill Target 80,000-120,000…
  23. November 2017 Company Update – Oil Search Limited – slide 23
    NEW VENTURES FUNDING OF ALASKA NORTH SLOPE ACQUISITION Initial acquisition cost of US400m funded from surplus cash OSH expected licence equity 25 30% 2018 capital expenditure for Alaska of US50m Development cost estimated at…
  24. November 2017 Company Update – Oil Search Limited – slide 24
    NEW VENTURES ALASKA NORTH SLOPE ACQUISITION SUMMARY Combined with world class PNG assets, Alaska provide OSH with unprecedented platform for growth: Highly complementary to OSHs low-cost, Tier 1 PNG portfolio Acquired at a highly…
  25. November 2017 Company Update – Oil Search Limited – slide 25
    FINANCIAL STRONG BALANCE SHEET Strong existing free cash flow generation from producing assets 3Q17 liquidity of US2 billion, comprising US1.2 billion of cash and US850 million of undrawn corporate facilities Sufficient financing…
  26. November 2017 Company Update – Oil Search Limited – slide 26
    SUMMARY CONCLUSION Excellent performance from operations: PNG LNG operating 25% above nameplate Additional capacity supported by significant 1P and 2P reserve upgrade in Foundation fields Mitigating decline from mature…
  27. November 2017 Company Update – Oil Search Limited – slide 27
    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…
  28. November 2017 Company Update – Oil Search Limited – slide 28
    APPENDIX ALASKA NORTH SLOPE ACQUISITION BUILDS ON OSHS CAPABILITY Replicate success of Papua New Guinea Alaska Halliburton agreement post (Papuan Basin) (North Slope) acquisition of Chevrons PNG assets 5 bnboe discovered(1) Proven…
  29. November 2017 Company Update – Oil Search Limited – slide 29
    APPENDIX ALASKA NORTH SLOPE ACQUISITION INVESTMENT HIGHLIGHTS World class, Tier 1 oil asset One of the largest conventional oil fields discovered in the US in more than 30 years with material growth 500 mmbbls(1) 1.2 bnbbls(2) with…
  30. November 2017 Company Update – Oil Search Limited – slide 30
    COMPANY UPDATE NOVEMBER 2017 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com

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