CLSA INVESTORS FORUM HONG KONG September 2018 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
OIL SEARCH OVERVIEW Established in PNG in 1929 Muruk Angore 29% interest in PNG LNG Project, Pnyang Moran operated by ExxonMobil, 60% interest Juha Kutubu Triceratops in, and operator of, PNGs producing oil Hides Gobe Main…
STRONG RECOVERY FOLLOWING MAJOR EARTHQUAKE IN PNG HIGHLANDS 7.5 magnitude earthquake struck PNG Highlands in OIL SEARCH NET PRODUCTION (MMBOE)1,2 late Feb-18 one in 100 year event: 35 OSH-operated Fortunately no major injuries among…
MID-TERM SALES AGREEMENTS SIGNED BY PNG LNG Three-year SPA signed with PetroChina for PNG LNG CONTRACTUAL COMMITMENTS 0.45 MTPA of LNG. Supply commenced Non July 18 Escrow Five-year SPA signed with BP. 0.45 MTPA Tranche 3…
PNG OIL FIELD AND ASSOCIATED GAS OPPORTUNITIES LIQUIDS ASSOCIATED GAS EXPANSION (AGX) Significant low risk opportunities identified to Work progressing on AGX opportunity extend production life of PNG oil fields Comprises accelerating…
DISCUSSIONS ADVANCING ON DEVELOPMENT OF NEW LNG CAPACITY Steady progress on new LNG developments in PNG following alignment on downstream concept: Hides Juha Three trains, 8 MTPA total capacity, two Kutubu Elk-Antelope supported…
SUBSTANTIAL GROWTH IN GLOBAL LNG DEMAND GLOBAL SUPPLY AND DEMAND Global LNG demand grew 11% in 2017 and 7% higher in 1H18 than 550 in 1H17 LNG demand growth expected to be 500 4.5% p.a. to 2030 New supply required from 2021-2023…
POTENTIAL GLOBAL LNG SUPPLY SHORTFALL COMMENCING IN EARLY 2020S LNG LIQUEFACTION CAPACITYCapacity LNG Liquefaction BY FID by YEAR FID Year Significant fall in new LNG capacity sanctioned: 30 Only 8.8 MTPA sanctioned since 2016…
OIL SEARCH EQUITY MARKETING OF EXPANSION VOLUMES Very positive response received from Tier 1 CONTRACT EXPIRATIONS BY YEAR buyers to initial OSH equity marketing from new LNG capacity in PNG 15 Buyers seeking LNG source…
PNG EXPLORATION AND APPRAISAL TO SUPPORT NEXT PHASE OF DEVELOPMENT Successful Kimu 2 and Barikewa 3 appraisal wells in PNG Forelands: Evaluation of well results underway to define resource volume and determine optimal…
ALASKA ACQUISITION COMPLETED, 2018 BUSINESS PRIORITIES SET US400m acquisition completed Feb 18, operatorship assumed March 18: Quality oil resource with significant upside Compelling entry price at right time in development and oil…
2018/19 WORK PROGRAMME FOCUSED ON MATURING PIKKA RESOURCE ESTIMATES Planning to drill two appraisal wells to constrain continuity of Nanushuk reservoir of Pikka Unit: Approximate extent of Pikka B and Pikka C locations identified,…
ALASKA BALANCED PORTFOLIO WITH FOUR STAGES OF GROWTH Pikka Unit 25.5% W.I with 80-120,000 b/d at 500 option for mmbbl with 250 mmbbl+ additional equity Short Term Pikka Unit upside potential Key milestones: Oooguruk…
BALANCE SHEET CAPACITY TO SUPPORT LNG EXPANSION AND ALASKA INDICATIVE PNG LNG REPAYMENT PROFILE Liquidity of US1.26bn (as at end June 18): (NET, USM) US850m corporate facilities, US412m cash 600 Operating cashflow benefiting from…
FUNDING ASSUMPTIONS FOR LNG EXPANSION AND ALASKA OSH total share of development costs (including capitalised interest and financing fees) for 20182023 expected to be US4bn comprising LNG expansion US3bn and Alaska North Slope (Pikka)…
ONGOING RELIEF ACTIVITIES FOLLOWING HIGHLANDS EARTHQUAKE Following 7.5 magnitude earthquake in Feb 18, OSH and Oil Search Foundation (OSF) played critical First Responder role: UN estimates OSH delivered 80% of total food supplies to…
OTHER PNG INITIATIVES Providing support to Government to resolve remaining issues related to PNG LNG benefits distribution to landowners Construction of 58MW power station in Port Moresby, due onstream early 2019 Construction of APEC…
SUMMARY Strong recovery following devastating earthquake in PNG in February Positive production outlook for 2H18, with profitability supported by higher oil and LNG prices Three train development concept represents excellent…
THANK YOU COMPANY UPDATE September 2018 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
APPENDIX 1: SAFETY AND ENVIRONMENTAL PERFORMANCE TOTAL RECORDABLE INCIDENT RATE (TRIR) No major injuries to OSH staff and contractors due to earthquake and 3 2.7 aftershocks 2.6 Per million hours 2.5 2.0 1.9 However, TRIR…
APPENDIX 2: 2018 FIRST HALF FINANCIAL PERFORMANCE USm 1H 2018 1H 2017 Sales volume (mmboe) 9.77 14.18 Revenue 557.8 676.2 Production costs (143.8) (126.2) Other operating costs (55.0) (55.0) Other income 4.7 5.6 1 EBITDAX…
APPENDIX 3: 2018 FULL YEAR GUIDANCE1 Production (mmboe) Current Guidance Oil Search-operated PNG oil and gas2,3 34 Total PNG LNG Project2 21 22 Total production 24 26 Operating Costs Production costs US11.0 13.0 / boe Other operating…
COMPANY UPDATE September 2018 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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