OIL SEARCH COMPANY UPDATE March 2019 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 Major LNG growth opportunities in PNG: Proposed development…
PNG OPERATIONS KEY FIELDS OIL SEARCH COMPANY UPDATE MARCH 2019 PAGE 4
ALASKA OPERATIONS KEY FIELDS OIL SEARCH COMPANY UPDATE MARCH 2019 PAGE 5
2018 HIGHLIGHTS Net profit of US341 million, 13% higher than 2017 despite lower production due to PNG Highlands earthquake in February 2018 Strong recovery in production in 2H18, with PNG LNG achieving record half-year production…
2018 PRODUCTION STRONG RECOVERY IN 2H18 2018 production of 25.2 mmboe, 17% lower than NET PRODUCTION (MMBOE) 2017, reflecting temporary shutdown of operations due to February earthquake 16 15.35 15.50 14.93 14.89 14.81 14.97 14.32…
7.5 MTPA OF PNG LNG PRODUCTION CONTRACTED 7.5 MTPA of PNG LNG production PNG LNG CONTRACTUAL COMMITMENTS contracted under long and mid-term agreements: Tranche Escrow3 under negotiation 6.6 MTPA under 20-year contracts with…
SIGNIFICANT GROWTH IN RESERVES AND RESOURCES OIL SEARCH 2P + 2C GROWTH At end Oil and % Gas % condensate Dec 2018 Change (bscf) change (mmbbl) +15% 1,600 +3% 1P Reserves 54.1 8% 1,937 5% -3% +4% 2P Reserves 68.0 7% 2,209 5%…
PNG OIL FIELD OPPORTUNITIES Commenced oil field optimisation programme in Jan-19 with workover of IDT 21. To be followed by workovers of M4 and M9 wells Moran 4, 9 Moran X and UDT S wells to be drilled in Moran X, O, Q, P 2H19…
2019 PRODUCTION OUTLOOK Production 2019 Guidance1 OIL SEARCH NET PRODUCTION (MMBOE)1,2 2,3 35 OSH-operated Oil Search-operated 4.0 5.5 mmboe PNG LNG 28.0 31.5 PNG LNG Project . 30.25 30.31 LNG 106 113 bcf 29.25 30 Power 0.7…
DEVELOPMENT OF NEW LNG CAPACITY IN PNG Good progress made in 2018 on pre-FEED downstream studies for new LNG capacity (3 x 2.7 MTPA trains): Downstream concept agreed, with two new trains dedicated to, and owned by, Papua LNG and…
PROPOSED CONFIGURATION AT PNG LNG PLANT SITE LNG Export Condensate/ Naphtha Export PNG LNG Onshore Boundary LNG LNG LNG Utilities, Train 1 Train 2 Train 3 Train 4 Train 5 power generation New Utilities,…
AGREEMENTS BEING FINALISED Memorandum of Understanding signed between Papua LNG and Government in November 2018, setting key terms and conditions for Gas Agreement: Equitable split of value between State and Developers Fiscal…
LNG DEVELOPMENT TIMELINE ROAD TO FIRST PRODUCTION IN 2024 2019 - 2024 Licencing and Approvals Gas Agreements Construction: - Complete infrastructure Early Works Tendering - Complete site clearing PNG LNG Access Commence -…
SUBSTANTIAL GROWTH IN GLOBAL LNG DEMAND Global LNG demand grew 6% in 2018 to 320 MT GLOBAL SUPPLY AND DEMAND 550 4.5% pa global LNG demand growth forecast 500 increased to 2030: SUPPLY 450 SHORTFALL Driven by government policies,…
COMPETITIVE ADVANTAGES OF LNG FROM PNG Provides buyers with security of supply from proven project, highly reliable technology, with high uptime Globally competitive production costs: Cooperative brownfield expansion with shared…
PNG PORTFOLIO HAS MULTI-TCF GAS POTENTIAL Strategic studies completed on prioritising exploration/appraisal activities to ensure optimal use of capital In NW Foldbelt, will continue to pursue opportunities for PNG LNG backfill and…
MURUK 2 UPDATE Muruk 2 appraisal well operations ongoing Success at Muruk will provide field phasing optionality Provisional results indicate objective Toro reservoir likely to be hydrocarbon bearing Further seismic acquisition being…
OIL SEARCH ALASKA - FULLY ESTABLISHED AND OPERATIONAL Alaska acquisition completed in Feb 18, operatorship assumed in Mar 18 Highly experienced team in Anchorage (300 years of combined North Slope experience), including senior…
2018/19 DRILLING PROGRAMME Two-well appraisal programme (Pikka B and Pikka C). Objectives include: Approximate extent of Nanushuk reservoir Pikka B/B ST1: Add 1C resource around DS 3. Flow test planned, to establish reservoir…
PIKKA UNIT DEVELOPMENT TIMELINE PATHWAY TO FIRST OIL IN 2024 2019 2020 2021 2022 2023 2024 Development Appraisal FEED Production (permitted base case) Two-rig appraisal programme Pikka B & C 15 producers/injector pairs drilled…
EXPANDED LEASE POSITION PROVIDES MATERIAL EXPLORATION UPSIDE Expanded portfolio position with recent acquisition of interests in leases covering more than 215,000 acres Material exploration upside: Aiming to drill up to three wells…
STRATEGIC OBJECTIVES FOR 2019 Progress high-value projects to FEED: Enter into aligned FEED for Papua LNG and PNG LNG/Pnyang expansion, including FEED for OSH- operated AGX project Enter into FEED on Pikka Unit development in…
FUNDING FOR LNG DEVELOPMENTS AND ALASKA Dependent on oil prices, expect to generate annual INDICATIVE GEARING (%) AND INTEREST COVER (X) operating cash flow of US1bn over 20192024 OSH total share of development costs from 2019 until…
MAINTAINING OPERATING STABILITY THROUGH SOCIAL INITIATIVES Ongoing social programmes, directly and through Oil Search Foundation, including: Continued earthquake relief (public health, infrastructure) Support of Hela Provincial…
2019 FULL YEAR GUIDANCE Capital costs 2019 Guidance Production 2019 Guidance 1,2 Exploration & Evaluation US235 285m Oil Search-operated 4.0 5.5 mmboe Development US145 170m PNG LNG Project 24.0 26.0 mmboe1 Production US95 115m…
SUMMARY Strong production outlook for 2019 Steady progress on LNG expansion in PNG: On target to sign PRL15 Gas Agreement by end 1Q19 Gas Agreement for PNG LNG Expansion (Pnyang) to occur shortly after, allowing contractor bidding…
APPENDIX 1: 2018 FINANCIAL PERFORMANCE USm 2018 2017 % Change Sales volume (mmboe) 25.02 30.04 -17% Revenue 1,535.8 1,446.0 +6% Production costs (290.0) (262.8) +10% Other operating costs (145.4) (141.1) +3% Other income 9.6…
APPENDIX 2: POSITIVE OPERATING CASH FLOW DESPITE EARTHQUAKE CASH FLOW WATERFALL, 2017 - 2018 (USM) Positive operating cash flow, despite 2,000 (811) earthquake impact on sales volumes, 855 buoyed by strong oil and gas prices 1,500…
Loading...
