2019 ANNUAL MEETING Rising to the challenge 10 MAY, 2019 Hilton Hotel, Port Moresby, PNG OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
PRESENTATION BY THE MANAGING DIRECTOR Peter Botten Rick Lee OIL SEARCH 2019 ANNUAL MEETING 10 MAY 2019 PAGE 3
IMPROVED SAFETY AND ENVIRONMENTAL PERFORMANCE DESPITE HIGHLANDS EARTHQUAKE TOTAL RECORDABLE INCIDENT RATE (TRIR) 3 2.6 Per million hours 2.5 2.0 1.9 worked 2 1.9 1.7 1.6 1.5 1.6 NO INJURIES, NO LOSS 1.5 OF HYDROCARBON…
2018 PRODUCTION A TALE OF TWO HALVES NET PRODUCTION (MMBOE) 2018 full year production of 25.2 mmboe, 17% lower than 2017, reflecting 16 15.50 14.93 14.89 15.35 14.81 14.97 temporary shutdown of operations 14 14.32 following Feb 2018…
END 2018 STRONG RESERVES AND RESOURCES POSITION SUPPORTS GROWTH PROJECTS OIL SEARCH 2P + 2C GROWTH Oil and At end % Gas % condensate Dec 2018 Change (bscf) change +15% (mmbbl) 1,600 +3% -3% +4% 1P Reserves 54.1 8% 1,937 5% 2P…
SOLID DEMAND FOR PNG LNG PROJECT GAS PNG LNG has established reputation as reliable exporter of high heating value LNG since commencing exports in 2014 During 2018/19, three new mid-term contracts signed with PetroChina, BP and…
PNG OIL FIELD OPTIMISATION Significant value remaining in operated oil fields: Moran 4, 9 Extensive programme over next five years Moran X, O, Q, P to extend plateau oil production until 2023- 24 Potential to add 30 mmbbl (net) to…
2019 PRODUCTION FORECAST OIL SEARCH NET PRODUCTION (MMBOE)1,2 Production impacted 35 OSH-operated PNG LNG by Feb-18 earthquake 28.0 31.5 30.25 30.31 29.25 30 25.21 25 19.28 20 15 10 5 0 2014 2015 2016 2017 2018 2019F 1.…
THREE MAJOR PROJECTS DRIVE HIGH VALUE PRODUCTION GROWTH 1. Development of Papua LNG: Based on Elk-Antelope field 2. Expansion of PNG LNG: Third train using gas initially from PNG LNG fields and then Pnyang 3. Development of Pikka Unit…
MATERIAL PROGRESS ON NEW LNG FOLLOWING LANDMARK PAPUA LNG GAS AGREEMENT Significant step forward for Papua LNG Project, following Nov 2018 Memorandum of Understanding Fair split of expected Project returns between State, Project…
PROPOSED CONFIGURATION AT PNG LNG PLANT SITE Sources of gas for 1C 2C LNG expansion (tcf) Elk-Antelope (OSH 5.2 6.7 2017) Pnyang (NSAI 2018) 3.5 4.4 Total 8 11 OIL SEARCH 2019 ANNUAL MEETING 10 MAY 2019 PAGE 12
FIRST SHIPMENTS FROM NEW LNG CAPACITY TARGETED IN 2024 2019 - 2024 Licencing and Approvals Construction: Gas Agreements - Complete infrastructure - Complete site clearing Early Works Tendering - Construction camps PNG LNG Commence…
LNG EXPANSION WELL POSITIONED FOR GROWTH IN GLOBAL LNG DEMAND GLOBAL SUPPLY AND DEMAND Global LNG demand grew 6% in 2018 to 320 550 MT and expected to grow at 4.5% p.a. to 2030: 500 Driven by government policies, NE Asia markets…
COMPETITIVE ADVANTAGES OF PAPUA LNG AND PNG LNG/ PNYANG Strong partners, with LNG a corporate focus and strong commitment by all parties in progressing to FEED and reaching FID Existing infrastructure in proven project minimises…
OIL SEARCH PNGS MOST ACTIVE EXPLORER IN 2018 Muruk OSH drilled four successful gas appraisal NW Highlands wells in PNG in 2018: Pnyang Pnyang South 2 ST1, Kimu 2, Barikewa 3, Elk-Antelope and Muruk 2 Farmed into four highly…
SIGNIFICANT GAS DISCOVERY AT MURUK 2, NW HIGHLANDS Muruk 2 confirmed gas in pressure communication with Muruk 1, located 12 kilometres away, indicating reservoir continuity Extended well shut-in and pressure build-up phase…
WHY ALASKA OSH has two world class LNG projects in PNG and substantial uncommitted gas resources to underpin growth When developed, will provide significant cash flow for many years Also recognise: Complex projects, requiring…
OIL SEARCH ALASKA NOW FULLY ESTABLISHED AND OPERATIONAL Alaska acquisition completed Feb 2018, highly experienced team recruited with extensive operating capability Successful first drilling campaign recently completed: Pikka B/ST1…
ALASKA FORWARD PLAN Integration of well and test results into development plan Evaluating opportunities to optimise development: Sharing of production facilities, especially in the north Early production opportunities being…
PIKKA UNIT BASE CASE TIMELINE, WITH OPPORTUNITIES TO OPTIMISE 2019 - 2023 Two-rig appraisal Construction: programme First production Contracting strategy Pikka B & C 15 producers/injector pairs complete drilled from two drill sites…
FACILITATING SOCIO-ECONOMIC DEVELOPMENT KEY TO SUSTAINABLE OPERATIONS Ongoing social programmes directly and through Oil Search Foundation, including earthquake recovery (public health, infrastructure and support of Hela Provincial…
FUNDING FOR LNG AND ALASKAN DEVELOPMENTS OSH share of LNG expansion and Alaskan oil development costs from 2019 until first production (including capitalised interest and financing fees) estimated at US4.5bn, subject to FEED outcome…
SUMMARY Major milestone reached on LNG expansion in PNG: Pnyang Gas Agreement targeted for 2Q19 FEED entry for downstream development expected mid- year, FID targeted for 2020 and first gas in 2024 Non Positive results from…
THANK YOU 2019 Annual Meeting 10 May, 2019 Rising to the challenge OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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