OIL SEARCH 2019 FULL YEAR RESULTS 25 February 2020 OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US ADR: OISHY www.oilsearch.com
EMERGENCY EVACUATION OIL SEARCH 2019 FULL YEAR RESULTS 25 FEBRUARY 2020 PAGE 3
AGENDA Result Agenda Speaker 2019 Highlights Keiran Wulff Safety Performance Keiran Wulff Social Responsibility Keiran Wulff Financial Overview & Performance Stephen Gardiner Production Keiran Wulff Gas Development and PNG…
2019 OPERATIONAL AND FINANCIAL HIGHLIGHTS 4.5 US/share US312.4 million 27.9 mmboe final dividend, taking full year NPAT in 2019 produced in 2019 dividend to 9.5 US/share, 46% payout ratio 96% US12.48/boe US35.5 million spent…
SAFETY FOCUS INITIATIVES UNDERWAY TO REFOCUS EFFORTS ON SAFETY 2019 TRIR increased due to incidents associated One Tier 1 and four Tier 2 Process Safety events in with remote seismic and marine operations within PNG PNG No Process…
RESERVES AND RESOURCES 96% INCREASE IN 2P RESERVE AND 2C LIQUIDS RESOURCES, DRIVEN BY ALASKA 2P and 2C oil reserves and resources rose 96% to End 2019 Liquids Change Gas Change Total1 Change Reserves and 497 mmbbl, while 2P and 2C…
STREAMLINED AND REFRESHED MANAGEMENT TEAM Keiran Wulff Managing Director Stephen Gardiner Beth White Bruce Dingeman Michael Drew Bart Lismont Diego Fettweis Chief Financial EVP & President EVP & President EVP Corporate & EVP…
OPERATING RESPONSIBLY IN ALASKA AND PNG CORE FOCUS FOR OIL SEARCH Operating sustainably has been part of Oil Searchs vision for the past decade Have been a major socio-economic contributor in PNG for many years and continue to provide…
FINANCIAL PERFORMANCE Net profit after tax was US312.4 million, 8% lower that in 2018, largely due to the fall in global energy prices (Peter Botten, Oil Search 2019 Full Year Results, 25 February 2020) OIL SEARCH LIMITED ARBN 055…
FINANCIAL PERFORMANCE WATERFALL NET PROFIT AFTER TAX, 2018 2019 (USM) NPAT of US312.4 million, down 8% on the prior year USm Revenue increased 3% with production increasing (+11%) 450 following the 2018 earthquake, offset by lower…
PRODUCTION COSTS (USm) 2018 2019 Higher production costs in FY19 reflect: Production costs (by unit) PNG LNG 171.0 179.9 PNG LNG: higher shared costs, including impact of PNG Oil & Gas 119.0 168.8 offshore liquids loading facility…
CASH/LIQUIDITY POSITION CASH BALANCE REFLECTS EXERCISE OF ALASKAN OPTION Cash flow waterfall (USm) 2019 year end liquidity position of US1.15 billion, USm comprising US396.2 million in cash and US755.7 million 1,600 in undrawn credit…
2020 FULL YEAR GUIDANCE Operating Costs Low High Production (mmboe) Low High Oil Search-operated 3 5 Production costs (US per boe) 11.00 12.00 PNG LNG Project 24 25 Other operating costs1 (USm) 130 150 Total Production 27.5 29.5…
PRODUCTION PNG LNG Project produced 8.5 MT (gross) during 2019, the highest annual production since the Project commenced operations in 2014. (Peter Botten, Oil Search 4Q19 results, 28 January 2020) OIL SEARCH LIMITED ARBN 055 079…
2019 PRODUCTION RECORD FULL YEAR PRODUCTION FROM PNG LNG Oil Search production (by product) 2019 production of 27.9 mmboe was 11% higher than 2018, mmboe which was impacted by the PNG earthquake 35.0 30.3 29.0 30.1 30.0 27.9 PNG…
OIL SEARCH-OPERATED FIELDS INFIELD DRILLING AND WORKOVER SUCCESS TO BOOST PRODUCTION IN 2020 Successfully completed workovers and two Moran 4, 9 development wells in the Kutubu and Moran fields: Moran 15ST2 Moran workovers (M4 gas…
2020 PRODUCTION OUTLOOK PRODUCTION EXPECTED TO BE SIMILAR TO 2019 DESPITE 2Q20 MAINTENANCE AT PNG LNG Oil Search-operated production continues to recover from Production (mmboe)1 Low High the 2018 earthquake: Oil Search-operated 3 5…
GAS DEVELOPMENT AND PNG EXPLORATION Im convinced that the PNG Government and Exxon will file an agreement. (Patrick Pouyann, TOTAL 4Q 2019 Earnings Call, 6 February 2020) OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH PNGX: OSH US…
LNG EXPANSION IN PNG DELAYED PAPUA LNG AND PNYANG JVS SUPPORT EXISTING DEVELOPMENT PLAN ExxonMobil and State Negotiating Team unable to agree an appropriate split of value and benefits for the Pnyang Gas Agreement: Suspension of…
PROGRESSING LNG EXPANSION FINALISATION OF PNYANG REMAINS THE KEY HURDLE TO COMMENCEMENT OF FEED PHASE 2019 Achievements 2020 Targets Successfully executed Papua LNG Gas Agreement in April Recommence dialogue with the PNG Government…
MARKETING OF OIL SEARCH VOLUMES RICH LNG FROM PNG WELL POSITIONED IN A LEANER GLOBAL LNG MARKET Heating Value and Project / Train Size (MTPA) vs. Global LNG quality (Btu/scf) First LNG (Year) Btu/scf Weighted Average High Heating…
PNG EXPLORATION PORTFOLIO MATERIAL EXPLORATION UPSIDE, BUT SPEND SUBJECT TO CAPITAL PRIORITISATION Significant potential in Oil Searchs PNG exploration portfolio Already sufficient discovered gas to underpin PNG LNG Project and LNG…
ALASKA OVERVIEW Mitquq 1s positive results and slick execution can only boost confidence that Oil Search is becoming a reliable operator in the region. (Wood Mackenzie, February 2020) OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH…
ALASKA HIGHLIGHTS SUCCESSFULLY PROGRESSING PIKKA DEVELOPMENT & CONFIRMING EXPLORATION VALUE Quality Alaskan-based team and field performance: Successful 2018/19 Pikka Unit appraisal programme 2019/20 - two rig programme and 40 km of…
PIKKA UNIT DEVELOPMENT ENGINEERING FEED ACTIVITIES COMMENCED AND TARGETING FID IN 2H20 3.7 mi ND-A 2.8 mi ND-B 7. ND-C 9 21.9 mi mi Targeting recovery of 728 million barrels of oil within the Nanushuk 3 and Alpine…
2019/20 WINTER FIELD OPERATIONS - INFRASTRUCTURE PREPARING FOR EARLY PRODUCTION SYSTEM AND FULL FIELD DEVELOPMENT Commenced civil works (Season 1 of 2) NDA Building key infrastructure for both EPS and FFD NDB Mitquq 2019/20…
2019/20 WINTER FIELD OPERATIONS - EXPLORATION TARGETING EARLY TIE-BACK OPPORTUNITIES AND DE-RISKING RESOURCE BASE Mitquq 1 & ST1 Stirrup 1 Spudded 25 Dec 2019 Spudded 27 Jan 2020 Mitquq 1 results: Intersected the Nanushuk 0 reservoir…
MITQUQ IMPLICATIONS PROVEN RESERVOIRS AND EMERGING PLAY FAIRWAY Alaska North Slope super-basin contains three world-class oil-prone Nanushuk Nanushuk and rocks with 18 billion barrels of oil produced to date1 Alpine Fairway Milne…
STRATEGIC REVIEW With the clock ticking, finalising a deal on Oil Searchs behalf will likely fall to Wulff, Bottens successor, who is mapping out a broader strategy for the company and how it will look to develop in the coming years.…
HOW WE SEE THE WORLD Oil Search is in a Oil Search has an The robust position today industry-leading reputation world is and has an outstanding for socially responsible changing platform to deliver further operation shareholder value…
POSITIONING FOR THE FUTURE Oil Search has commenced a Company-wide strategic review The review will The review will not Strategy update Re-evaluate Oil Searchs long-term Distract from Oil Searchs focus on Strategic review will be…
OIL SEARCH IN 2020 Commercialising & advancing LNG expansion Focused on a positive outcome for all parties Targeting optimal three-train LNG expansion, welcome ongoing dialogue with PNG Government Delivering our Alaskan Pikka Unit…
FINANCIAL OVERVIEW P&L SUMMARY (US million) 2018 2019 Change (%) Production (mmboe) 25.21 27.95 11% Sales (mmboe) 25.02 27.79 11% Average realised oil & condensate price (US/boe) 70.65 62.86 (11%) Average realised LNG & gas price…
IFRS 16 (LEASES) FINANCIAL IMPACT US10.7 million negative impact on NPAT, driven by: Depreciation of right-of-use assets, US29.1 million; Interest expense on lease liabilities, US20.3 million; Impact on P&L Offset by Cost recoveries…
RESERVES AND RESOURCES1,2 AT 31 DECEMBER 2019 Licence/Field OSH Interest Proven Reserves (1P) Proven & Probable Reserves (2P) Total Total Gas4 Total Total Gas4 Oil/Condensate3 Oil/Condensate3 (mmbbls) (bcf) (mmbbls) (bcf) PDL 2…
RESERVES & RESOURCES NOTES 1) Numbers may not add due to rounding. 2) Kutubu and Moran oil fields proved Reserves (1P) and proved and probable (2P) Reserves are as certified by independent auditor Netherland, Sewell & Associates, Inc.…
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