UBS AUSTRALASIA CONFERENCE SYDNEY November 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 29% interest in PNG LNG Project (operated by ExxonMobil) 60% interest in, and operator of, all PNGs producing oil fields Pursuing major LNG growth opportunities in PNG in partnership…
PNG OPERATIONS KEY OIL AND GAS FIELDS UBS AUSTRALASIA CONFERENCE NOVEMBER 2018 PAGE 4
YEAR TO DATE OPERATIONAL HIGHLIGHTS Strong recovery in production since PNG Highlands earthquake in February, with PNG LNG achieving record production levels in 3Q18 of 8.9 MTPA Two mid-term SPAs signed with PetroChina and BP, taking…
STRONG RECOVERY IN PRODUCTION SINCE PNG HIGHLANDS EARTHQUAKE 7.5 magnitude earthquake struck PNG Highlands in late Feb-18 one in 100 year event: OIL SEARCH NET PRODUCTION (MMBOE) All operations temporarily shut in, impacting 2018 full…
PNG LNG CONTRACT VOLUMES INCREASED TO 7.5 MTPA Two mid-term SPAs signed in 2018: PNG LNG CONTRACTUAL COMMITMENTS Three-year SPA signed with PetroChina for 0.45 MTPA of LNG. Supply commenced July Tranche 3 Escrow 18 BP…
2018 FULL YEAR GUIDANCE Current Guidance1 Total production (mmboe)2 25.0 26.0 Operating Costs Production costs (US per boe) 11.50 12.50 Other operating costs3 (USm) 140 150 Depreciation and amortisation (US per boe) 12.00 13.00 Capital…
DISCUSSIONS ADVANCING ON DEVELOPMENT OF NEW LNG CAPACITY Progressing new LNG developments in PNG: Three trains, 8 MTPA total capacity Two trains supported by Papua LNG (Elk- Antelope), one by PNG LNG and Pnyang All located on…
SUBSTANTIAL GROWTH IN GLOBAL LNG DEMAND GLOBAL SUPPLY AND DEMAND Global LNG demand up 11% in 2017 and on track to grow 7-8% in 2018 550.0 LNG demand growth forecast at 4.5% pa to 2030, largely driven by Asia: 500.0 China…
OIL SEARCH EQUITY MARKETING OF EXPANSION VOLUMES Very positive response received from Tier 1 buyers CONTRACT EXPIRATIONS BY YEAR to initial OSH equity marketing from new LNG capacity in PNG 15.0 Buyers seeking LNG source…
PNG EXPLORATION AND APPRAISAL TO SUPPORT NEXT PHASE OF LNG Muruk 2 appraisal in NW Foldbelt: 11km step-out to constrain resource size, commenced drilling in on 10 November Successful Kimu 2 and Barikewa 3 appraisal wells in PNG…
PNG OIL FIELD AND ASSOCIATED GAS OPPORTUNITIES LIQUIDS ASSOCIATED GAS EXPANSION (AGX) Significant low risk opportunities identified to extend Work progressing on AGX opportunity production life of PNG oil fields Comprises…
ALASKA TIMELY ACQUISITION WITH MATERIAL RESOURCE UPSIDE US400m acquisition completed in Feb-18, operatorship assumed in Mar-18: Competitive implied acquisition cost of US3.10/bbl, based on 2C resource of 500 mmbbl Potential to…
2018/19 WORK PROGRAMME FOCUSED ON MATURING PIKKA RESOURCE ESTIMATES Two appraisal well programme to constrain continuity of Nanushuk reservoir of Pikka Unit: Approximate extent of Pikka B and Pikka C locations identified, sites…
ALASKA - INDICATIVE TIMETABLE TO FIRST OIL 2018 2019 2020 2021 2022 2023 2024 Development Appraisal FEED Production (permitted base case) 2017/18: ConocoPhillips Early works no regret identified 15 producers/injector pairs…
FOUR PHASES OF GROWTH IN ALASKA *Oil Search estimate UBS AUSTRALASIA CONFERENCE NOVEMBER 2018 PAGE 18
FUNDING ASSUMPTIONS FOR LNG EXPANSION AND ALASKA INDICATIVE PNG LNG REPAYMENT PROFILE OSH total share of development costs (including capitalised interest (NET, USM) and financing fees) for 20192023 expected to be US4.5bn: 600 LNG…
PRODUCTION FORECAST TO DOUBLE BY 2025 INDICATIVE OSH PRODUCTION BASED ON DEVELOPMENT OF EXISTING RESOURCES 70 Production, millions barrels of oil equivalent 60 50 40 30 20 10 0 2017 Existing Assets PNG…
STRONG COMMITMENT TO SOCIAL RESPONSIBILITY INITIATIVES OSH at forefront of PNG earthquake relief efforts: US5m in cash and kind donated to relief efforts, delivered 80% of food supplies to impacted areas in first four weeks, major…
SUMMARY Positive production outlook for 2H18, with profitability supported by higher oil and LNG prices: PNG LNG Project currently operating at record production levels Three train 8 MPTA development concept represents excellent…
APPENDIX 1. PRIORITISING ACTIVITY IN ALASKA TO MAXIMISE VALUE 2000 Gross Discovered & Unrisked Prospective Resources 1 Pikka CPF Resources Horseshoe CPF Resources Pikka Nan 2/3 Horseshoe North & South Alpine C & Satellites Horseshoe…
APPENDIX 2. ALASKA ECONOMIC CASE SUMMARY INDICATIVE PIKKA DEVELOPMENT WITH PERMITTED BACKFILL1 Permitted Scope Pikka Nan 2/3 Alpine C Other Satellites (2018) (DS 2&3) (DS1) (DS2) Startup 2023 2024 - 2028 2024 - 2028 Total Volume…
UBS AUSTRALASIA CONFERENCE - SYDNEY November 2018 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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