OIL SEARCH COMPANY UPDATE MACQUARIE AUSTRALIA CONFERENCE APRIL 2019 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
SIGNIFICANT PROGRESS MADE IN 2018/19 ON VALUE-ADDING INITIATIVES Landmark Papua LNG Gas Agreement signed in April 2019: Commercial agreements close to completion Pnyang Gas Agreement expected to be finalised 2Q19, enabling…
LANDMARK PAPUA LNG GAS AGREEMENT SIGNED IN APRIL 2019 Significant step forward for Papua LNG Project, following Nov 2018 Memorandum of Understanding Fair split of expected Project returns between State, Project participants and other…
PROPOSED CONFIGURATION AT PNG LNG PLANT SITE Condensate/ LNG Export Naphtha PNG LNG Onshore Export site boundary LNG LNG LNG LIQUIDS LIQUIDS Utilities, power Train 1 Train 2 Train 3 Train 4 Train 5…
LNG DEVELOPMENT TIMELINE 2019 - 2024 Licencing and Approvals Gas Agreements Construction: - Complete infrastructure Early Works Tendering - Complete site clearing PNG LNG Access Commence - Construction camps Agreements FIDs on: -…
GROWTH IN GLOBAL LNG DEMAND FORECAST TO CONTINUE Global LNG demand grew 6% in 2018 to 320 MT, GLOBAL SUPPLY AND DEMAND expected to grow at 4.5% pa to 2030: 550 500 Driven by government policies, with NE Asia SUPPLY markets…
COMPETITIVE ADVANTAGES OF LNG FROM PNG PAPUA LNG DEVELOPMENT AND PNG LNG/PNYANG EXPANSION Strong partners, with LNG a corporate focus Existing infrastructure minimises capital costs, with savings as expected Strong financing base,…
SIGNIFICANT GAS DISCOVERY AT MURUK 2 Testing has confirmed gas in pressure Success at Muruk will provide field phasing communication with Muruk 1 ST3 optionality, given proximity to existing Hides infrastructure Indicates reservoir…
PNG EXPLORATION PORTFOLIO HAS MULTI-TCF GAS POTENTIAL Strategic studies completed on prioritising exploration/appraisal activities to ensure optimal use of capital Following successful Muruk appraisal, will continue to pursue…
PNG OIL FIELD OPPORTUNITIES Oil field optimisation programme commenced in Jan 19: Workover of IDT 21 at Kutubu completed Moran 4, 9 1Q19, to be brought online 2Q19 Moran X, O, Q, P At Moran, workover of M4 complete, M9 underway…
ALASKA - SUCCESSFUL INAUGURAL DRILLING PROGRAMME Two-well appraisal programme met/exceeded OSH expectations Approximate extent of Nanushuk reservoir Pikka B intersected thickest Nanushuk reservoir section to date Pikka C Pikka B…
ALASKA FORWARD PLAN Full integration of well and test results into development plan Record of Decision for Pikka Unit Development Statement (FEIS) expected shortly Evaluating opportunities to optimise development: Sharing of…
PIKKA UNIT BASE CASE TIMELINE, WITH OPPORTUNITIES TO OPTIMISE 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 UNDERWRITES LONG-TERM GROWTH Expanded portfolio position with acquisition of interests in leases covering 215,000 acres Work underway on Horseshoe area Nanushuk reservoir model finalisation and well location…
FUNDING FOR LNG AND ALASKAN DEVELOPMENTS Dependent on oil prices, expect to generate operating cash flow of US1bn p.a. over 20192024 OSH total share of development costs from 2019 until first production (including capitalised interest…
FACILITATING SOCIAL AND ECONOMIC DEVELOPMENT KEY TO SUSTAINABLY OPERATING Ongoing social programmes, directly and through Oil Search Foundation, including: Long-term earthquake recovery (public health, infrastructure) Support of Hela…
SUMMARY Major milestone reached on LNG expansion in PNG: Pnyang Gas Agreement targeted for 2Q19 FEED entry for the downstream development expected to occur shortly after FID targeted for 2020 and first gas in 2024 Market appetite…
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: 2019 PRODUCTION OUTLOOK Production 2019 Guidance1 OIL SEARCH NET PRODUCTION (MMBOE)1,2 Impacted by 2,3 35 OSH-operated Oil Search-operated 4.0 5.5 mmboe Feb-18 PNG LNG earthquake 28.0 31.5 PNG LNG Project . 30.25…
APPENDIX 3: 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…
APPENDIX 4: PNG LNG PROJECT CONTRACTS 7.9 MTPA of PNG LNG production PNG LNG CONTRACTUAL COMMITMENTS contracted under long and mid-term agreements: Escrow Unipec 0.45 MTPA 6.6 MTPA under 20-year contracts with JERA, Escrow BP 0.45…
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