Microsoft PowerPoint - 1511 Investor Field Trip FINAL v1
November 2015
Oil Search Limited
ARBN 055 079 868
ASX: OSH | POMSoX: OSH | US ADR: OISHY
Disclaimer
While every effort is made to provide accurate and complete information, Oil Search Limited does not warrant that the information in this presentation is free from errors or omissions or is suitable for its intended use. Subject to any terms implied by law which cannot be excluded, Oil Search Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.
This presentation also contains forward-looking statements which are subject to particular risks associated with the oil and gas industry. Oil Search Limited believes there are reasonable grounds for the expectations on which the statements are based. However actual outcomes could differ materially due to a range of factors including oil and gas prices, demand for oil, currency fluctuations, drilling results, field performance, the timing of well work-overs and field development, reserves depletion, progress on gas commercialisation and fiscal and other government issues and approvals.
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Presentation Agenda
Welcome
PNG Production Gas Development Exploration
Operating in a US$50/bbl world Social responsibility
Wrap up
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Field Trip Route
Muruk 1
(time/weather permitting)
Hela
Nogoli
Enga
Western
Highlands Jiwaka
Madang
Hides
Ambua Lodge
Kutubu CPF Ridge Camp
Moro Airstrip
Southern Highlands
Gobe
Chimbu
Eastern Highlands
Morobe
Western
Oil Field Gas Field Oil Pipeline
PNG LNG
Pipelines
Purari Airstrip
Elk / Antelope
Antelope 3 Base Camp
Gulf
Day 2 Route
Northern
O PNG
Proposed PNG LNG Gas Pipeline
SH Facility
LNG Facility Main Roads
Day 3 Route
LNG Facility Day 1 - Port Moresby
Central
NCD
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Oil Search - the National Champion
» Four-fold increase in production achieved over past two years:
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Highly profitable production, with low cost base
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Low ongoing maintenance capex requirements
» OSH has unique and specialised operating expertise in PNG:
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OSH has operated >70% of all wells drilled in PNG since 2003
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Oil fields - have not missed a cargo loading in 24 years of operations
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Provide 20% of gas for PNG LNG Project and manage all liquids exports:
» Undertake work on behalf of Majors, including drilling, seismic
» Well developed logistics/supply chain in challenging environment
» Cultural awareness of landowner management/interactions and business development
» >83% of PNG workforce are PNG nationals
» Range of social programmes to manage operating and social risks
» Work with Government and public service to ensure stable operating environment
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PNG LNG Project - a major success story
» Annualised production in 3Q15 of ~7.4 MTPA (1H15 of ~7.1 MTPA), vs nameplate capacity of 6.9 MTPA:
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ExxonMobil stated increase in gross capacity from
6.9 MTPA to 7.3 MTPA, reflecting 'focus on maximising the value of installed capacity and improving profitability'*
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Supported by strong upstream deliverability (including OSH-operated gas supply) and LNG plant reliability
Juha Future Juha
Facility
Hides Gas Conditioning Plant
& Komo Airfield
HGCP
Hides
Angore
Hides development drilling complete
Moran Agogo
Kutubu Gobe Main
PNG LNG Project Gas Fields
OSH Operated OSH Interest Oil Pipeline Oil Facility
Oil Field Gas Pipeline Gas Facility Gas Field
Condensate Pipeline
» Current focus on production optimisation / debottlenecking:
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Already delivering substantial incremental value, with further upside potential
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Debottlenecking opportunity in 2017 coincident with scheduled compressor maintenance
» Project has delivered major infrastructure, Government and landowner support, Tier 1 LNG customers, financier confidence
TEG unit
Gas Pipeline
LNG shipped to Asian buyers
LNG Plant
LNG Facility
* ExxonMobil 3Q 2015 earnings conference call
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PNG LNG's competitive advantages
» Conventional LNG project
» Substantial proven reserves base
» High heating value, suitable for Asian reticulation networks
» High liquids, enhancing economics
» Onshore location with existing oil infrastructure base
» Located close to Asian LNG markets
CHINA
Qingdao LNG Terminal
TAIWAN
Senboku LNG
Terminal
JAPAN
Futtsu LNG Terminal
» Stable fiscal regime with strong Government support
» Top tier operator, ExxonMobil, augmented by OSH's 86 years of in-country experience:
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OSH's in-country role highly valued by partners (including Government and landowners) and financiers
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OSH operations (responsible for 20% of gas for LNG, all PNG LNG liquids handling) meets all ExxonMobil's standards
» Provides attractive returns and extremely robust to product price movements
Yung-An LNG Terminal
Located close to Asian LNG markets
PNG
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