O I L S E a R C H L I M I T E D Oil Search Profile
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O I L S E A R C H L I M I T E D 1 Oil Search Profile Established in Papua New Guinea (PNG) in 1929 Market capitalisation ~US$11bn Listed on ASX (Share Code OSH) and POMSOX, plus ADR programme (Share Code OISHY) Tunis Sulaymaniyah Tunisia Operates all PNG’s currently Iraq Dubai producing oil and gas fields Sana’a Yemen PNG Government is largest shareholder with 15%. Exchangeable bond over shares Papua New Guinea Kutubu Ridge Camp issued to IPIC of Abu Dhabi Port Moresby (Head Office) 29% interest in PNG LNG Project, world scale LNG project operated Australia Brisbane by ExxonMobil Sydney Exploration interests in PNG, Middle East/North Africa 2 The Next Transformation PNG LNG being delivered progressively and predictably – four fold increase in production with similar impact on cash flows Focus on LNG expansion: OSH a major resource and infrastructure owner Optimal development of additional trains a major objective, resource understanding paramount Attractive economics – class-leading returns Continued PNG oil upside: Mananda Ridge a new focus Solid production from existing base Significant resource confirmed at Taza in Kurdistan: Moving to appraisal and staged development Balance sheet remains solid: Able to support unprecedented growth opportunities 3 Consistent strategy and disciplined capital management deliver share price growth A$ billion OSH Market Capitalisation & Share Price History A$/share 12 9.00 • Significant share price growth (23 Oct 13) o 20 years to date 959% 8.00 o 10 years to date 764% P’nyang South 10 discovery o 3 years to date 33% 7.00 • Key milestones likely to impact share price over the next 18 months: 8 o PNG LNG Train 1 and 2 completion 6.00 o LNG expansion o Mananda and Taza development 5.00 6 4.00 PNG LNG sanctioned 4 3.00 2.00 2 1.00 Market Capitalisation Share Price 0.00 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Kutubu Buy BP Moran oil Buy Merger with Buy ChevronTexaco’s first oil Gobe discovery BP’s PNG Orogen PNG assets, assume assets assets Minerals operatorship 4 Key Oil and Gas Fields, PNG Madang Juha PPL260 Angore North P’nyang PRL3 Porgora Wabag Gold Mine Juha 260 Hides PDL8 Proposed Juha PDL9 PRL11 Facility PDL1 Mt. Hagen PPL277 Moran 6°S Kundiawa PRL02 PDL6 Goroka Kiunga PDL5 PDL7 233 Mendi 233 Agogo Hides Gas Conditioning Plant PPL219 Moro Airport & Komo Airfield Kutubu PDL2 Gobe Main PPL339 Mananda 5 PRL14 PPL277 Mananda 6 Lae 338 339 PDL4 PDL3 339 7°S SE Mananda PRL09 338 Barikewa Elk/Antelope PRL08 338 Kimu 339 Oil Field Kopi Wharf SE Gobe PPL338 Gas Field Uramu 339 Kopi Scraper PPL339 Prospect Station PRL10 Oil Pipeline Kerema 339 339 8°S Kumul Terminal PNG LNG Gas Pipeline PPL234 PNG LNG Project OSH Facility PPL385 Gas Fields PPL244 Hagana PNG LNG Project Facility PNG LNG Project Flinders LNG Facility New Facilities Major Road 9°S Non PNG LNG Daru 100km Gas/Oil Fields Port Moresby 141°E 142°E 143°E 144°E 145°E 146°E 147°E 5 PNG LNG Project Angore Hides Juha Juha Facility Moran 6°S Hides Gas Conditioning Plant Komo Airfield Agogo Kutubu Gobe Main 7°S Onshore pipeline and Infrastructure Oil Pipeline 8°S PNG LNG Kumul Terminal Gas Pipeline OSH Facility PNG LNG Project Facility Offshore pipeline LNG Facility 9°S 100km Port Moresby 141°E 142°E 143°E 144°E 145°E 146°E 147°E 6 PNG LNG Project Overview 6.9 MTPA, 2 train development, operated by ExxonMobil Expected to produce more than 9 tcf of gas and 200+ million barrels of associated liquids over its 30 year life Initial Equities: ExxonMobil (33.2%), Oil Search (29.0%), National Petroleum Company of PNG (PNG Govt) (16.8%), Santos (13.5%), Nippon Oil (4.7%), MRDC (PNG Landowners) (2.8%) 6.6 MTPA contracted to Asian buyers. Additional 0.3 MTPA to be sold either under contract or spot: Sinopec (China) ~2.0 MTPA TEPCO (Japan) ~1.8 MTPA Osaka Gas (Japan) ~1.5 MTPA CPC (Taiwan) ~1.2 MTPA 7 PNG LNG Project Status *Existing Facilities Over 90% complete Juha Gas Field Juha Production Facility 250 Mcfd 60km x 14” 60km x 8” Commissioning activities underway at gas line liquids line Hides LNG plant Gas Field Hides Gas Conditioning Plant 960 Mcfd Angore Gas Field First LNG sales window narrowed to 109 km x 8” second half of 2014 condensate line Agogo/Moran* Cost outlook of US$19bn confirmed by 292 km x 32” gas Kutubu* pipeline onshore operator, Esso Highlands Gobe* US$1.5bn (gross) supplemental project Existing 270 km x 20” crude oil export line financing secured, all funding now in LNG Facility 6.9 MTPA place to complete Project OSH forecast spend (net) in 2013: 407 km x 34” subsea gas pipeline US$1.3 – 1.4 bn (inc financing), funded Gulf of Papua Port Moresby 70:30 debt:equity 8 Commissioning of key equipment at LNG plant site underway PNG LNG Plant LNG Facility Gas Flare at LNG Plant 9 Land access for entire onshore pipeline complete Onshore Pipeline Offshore Pipeline Work underway on mainline between Kutubu and Hides and spineline between Hides and wellpads Pipeline Installation 10 Oil fields are now supplying commissioning gas to LNG plant Kutubu Kumul Major milestone achieved in September when commissioning gas from Kutubu was introduced into LNG plant Gas will be used to commission plant site utilities and process trains TEG Dehydration Unit at CPF 11 All Antonov cargoes into Komo completed, major equipment on foundations at HGCP Hides Gas Conditioning Plant (HGCP) HGCP 12 Drilling at Hides progressing with two rigs operating Drilling rig 703 Hides GTE Plant PDL 1/7 – Hides Field 8 New Production Wells Hides Nogoli Camp PDL 8 – Angore Field 2 New Wells Hides Gas Conditioning Plant 10km Komo Airfield 3 wells (B1, B2, C2) completed Rig 703 drilling bottom hole section of C1 at well pad C Rig 702 has commenced drilling at well pad D (D1 & D2) 13 PNG LNG Project Timetable » Continued early works » Continue onshore » Detailed design pipe lay » Order long leads and » Complete offshore pipe place purchase orders lay » Open supply routes » Start Hides plant » Contractor mobilisation installation First Gas from » Commence AG » Start Hides drilling Train 1, construction » Complete key AG items then Train 2 2010 2011 2012 2013 2014 » Financial » Ongoing procurement » Complete pipe lay » Close and mobilisation » Ongoing drilling » Airfield construction » Construction of » Drilling mobilisation HGCP » Start offshore » Commission LNG pipeline plant with Kutubu construction gas » Onshore line clearing and laying » Start LNG equipment installation 14 Potential expansion of PNG LNG using Highlands gas PNG LNG Project PPL260 With PNG LNG construction Gas Resources Hides Non PNG LNG Gas approaching completion, PRL3 Juha North Wabag Resources focus is moving to potential 260 PDL8 PRL11 Angore Juha PDL9 expansion opportunities P’nyang PDL1 Mt. Hagen Moran 6°S PRL02 PDL6 PDL5 Possible gas for expansion Hides Gas PPL233 PDL7 Mendi Conditioning Plant PPL233 & Komo Airfield includes P’nyang, Juha North PPL219 PPL277 Gobe Main and other Highlands Agogo PDL2 Kutubu SE Gobe opportunities PDL4 PPL277 PRL14 Exploration and appraisal PDL3 Iehi/Cobra 7°S PRL09 338 activity in PNG Highlands PRL08 Kimu Barikewa underway, to help better 338 understand gas resource picture 100km 8°S Kumul Terminal 142°E 143°E 144°E 15 Scoping on potential development of P’nyang ongoing Resource definition, engineering, environmental and social impact studies on P’nyang Gas Field in PRL 3 JV (OSH 38.5%, ExxonMobil 49.0%, JX Nippon 12.5%) progressing Development work expected to continue through 2013 and into 2014, to support submission of production development licence application in 2015 Oil Search estimates total 2C gas resources in P’nyang field of 2.5 – 3.0 tcf, with possible upside Acquisition of second phase of additional seismic in PRL 3 underway, to support potential development 5km Juha 100km Hides Angore 6°S P’nyang Moran Kutubu Agogo Gobe 8°S 142°E 144°E 16 Proposed sale of PRL 15 PPL339 InterOil (IOC) seeking to bring experienced LNG operator into PRL15, which contains Elk and PPL277 Antelope gas fields, located in PNG 338 339 Gulf Province Triceratops 7°S 339 338 Sale process ongoing PRL 15 OSH watching with interest and 338 Elk / Antelope 339 engaged with key players on potential development options PPL338 339 PRL10 PPL339 Kerema 8°S 50km Kumul Terminal 145°E 146°E 17 Gas discoveries in Gulf of Papua Gas discovered at both Flinders and Hagana wells in PPL 244 Good quality sand discovered at 8°S Kidukidu in PPL 385, but water Kumul Terminal wet PPL234 Drill results prove Plio- Pleistocene turbidite play PPL385 fairway in Gulf of Papua PPL244 Hagana Drilling data being used to Flinders calibrate seismic and geological Kidukidu models, allowing full evaluation of other prospective targets in 9°S Gulf 50km 145°E 18 Onshore Gulf of Papua: seismic being acquired 2D Seismic 2013 Lines PPL339 Seismic programme in PPL 338 underway as part of Oil Search farm- PPL277 in option, covering potential extension of Triceratops discovery 338 Evaluation of gravity gradiometry 338 Triceratops 7°S data underway 338 Elk/Antelope Subject to results of seismic, OSH will decide whether to take up equity and drill well PPL338 30km 145°E 19 Mananda development, PNG Highlands Application for development licence PPL219 PDL1 PPL277 submitted to PNG Government in August 2013 Mananda 5 PDL6 PDL5 Mananda 6 Phased development.