Investor Presentation January 2018
Forward-looking statements This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements. January 2018 | P1
Executive Summary
2017 – a year of strong delivery Production Cost Base Disposals Catcher 2017 2017 2017 2017 Production 75.0 Opex of $16.5/boe; Wytch Farm First oil delivered on kboepd, in line with FY capex $305m completed; Pakistan 23 December. On guidance below revised and ETS pipeline schedule and c30% guidance sales announced below budget 2018 Target 2018 Target 2018 Target 2018 Target Guidance 80-85 Complete Pakistan Deliver production FY guidance of opex kboepd (Catcher ramp and ETS sales; other ramp up to 60,000 c$17-18/boe and capex up and 2017 disposals) processes ongoing bopd; complete wells (ex-Abex) of $300m Tolmount Sea Lion Exploration Net Debt Reduction 2017 2017 2017 2017 HoT signed with Negotiating funding World class oil Positive cash flow in infrastructure packages; LOI signed discovery at Zama-1, the year; partner; draft FDP with contractors Mexico deleveraging submitted to OGA underway 2018 Target 2018 Target 2018 Target 2018 Target Progress financing, Appraise Zama in Generate positive net Progress for FID in fiscal and commercial H2/early 2019 and cash flow and target 2018 initiatives define development debt reduction to 3x plans Net Debt/EBITDA January 2018 | P3
Production overview Largest 5 fields account for c. 70% of production January 2018 | P4
Development portfolio >800 mmboe of discovered but undeveloped reserves and resources January 2018 | P5
Delivering on our strategy Acquisitions • Opportunistic acquisitions Stakeholder Returns Production Development Exploration • 75 kboepd • Operated • Proven basins • FPSO’s • Under drilled • Partner-funded Value Costs • c$16/bbl Debt Reduction Portfolio Management • Disposals – realising value January 2018 | P6
Future plans Portfolio Management – Acquisitions Portfolio Management – Disposals • Non core assets • Disposals by majors • Mitigating risk • Tax optimisation Stakeholder Returns Production Development Exploration • Continuing • Catcher • High value, growth near field • Tolmount • Reserve life >10 yrs • Material upside • Sea Lion Value in Mexico and • Zama Operating Costs Brazil • Tuna • $17-$18/bbl Debt Reduction Balance Sheet Management • Free cash flow 2018-2022 reducing debt • Net debt : EBITDA <3x January 2018 | P7
Producing Portfolio
Chim Sáo, Vietnam (53.125%, operator) 2017 • 14.9 kboepd • High operating efficiency and strong reservoir performance • $9/boe operating cost • 2 infill wells completed; 6,500 boepd (gross) production added Improved Production Profile 55 mmboe Current kboepd (gross) at sanction Previous 57 mmboe 35 produced 30 to date 25 20P 5IPST1 20 15 59 mmboe 10 5 reserves 0 remaining 2016 2017 2018 2019 2020 January 2018 | P9
Natuna Sea Block A, Indonesia (28.67%, operator) BIGP 2017 • 12.9 kboepd, above budget • Singapore demand above take or pay (49% of GSA vs 47% contractual share) • High operating efficiency • Opex of c.$8.7/boe • Lama development well (WL-5X) tied into 93 Bcf production; producing 20-25 mmscf/d $340m gross capex Outlook • Singapore demand stable • GSA1 market share increasing • BIGP first gas 2019 30% IRR Market Share GSA1 NSBA Production net to PMO (%) (kboepd) 20 100 80 15 60 10 40 5 20 0 0 2016 2017 2018 2019 2020 January 2018 | P10
Huntington, Central North Sea (100%, operator) 2017 • 13.0 kboepd, 28% above budget − High FPSO operating efficiency − Strong reservoir performance − HoT agreed on lease extension and extended Shell term deal Outlook • Maximise production Currently producing ~13 kboepd January 2018 | P11
Solan, West of Shetlands (100%, operator) 2017 • 5.9 kboepd • Central reservoir on prognosis; Eastern area of field under-performing Outlook • P1 producing steadily on free flow • P1 workover deferred • Options to improve production being evaluated; potential infill well 2019 Top Solan Sand Depth Map W1 500m P2 P1 W2 January 2018 | P12
Elgin-Franklin, Central North Sea (5.2%) 2017 • 5.4 kboepd • Low opex of c.$8/boe Outlook • Long field life; production forecast to continue until 2037 • 350 mmboe remaining reserves • Ongoing infill drilling, well intervention programme and exploration upside January 2018 | P13
Portfolio Potential
Catcher – first oil achieved 23 December • All 12 wells planned pre-first oil completed • Arrived in North Sea in October confirming good quality oil • Hook up and Commissioning • Subsea activities complete including short programme executed in c. 2 months campaign to support hook-up and commissioning • First Oil from Catcher field operations post arrival of FPSO achieved 23 December and from Varadero on 12 January • Phased ramp up of production underway • Important cornerstone of Premier’s debt reduction Project capex down 29% on sanction September 2017 | P15 January 2018 | P15
Catcher Final Commissioning & Production Profile Fuel Gas Primary Flash Catcher Oil Stabili- Produced Fuel Varadero Permeat. Gas Burgman Water Gas Export Gas Gas First Oil sation Water Gas First Oil Comp Lift First Oil Injection Import Comm. Handling Comp 70,000 60,000 Daily Oil Potential (stb/d) 50,000 40,000 30,000 20,000 10,000 0 Catcher Varadero Burgman • Catcher is the initial field on production due to it’s ability to produce oil in a stable fashion for the first stages of the FPSO plant commissioning • Each field will be brought on in the following manner – Well clean up (initial clean up restricted by rig surface equipment) – Well test through the subsea multi-phase meters – Restricted rate to manage gas rates through commissioning period • Following gas train commissioning completion and the introduction of Burgman fluids the plant will be run at 60 kbopd January 2018 | P16
Catcher – continuing positive drilling results • 14 wells completed to date Varadero – 4 on each of Catcher, Varadero and Burgman fields planned pre first oil – Phase 2 drilling on Catcher underway • Good test results: – Net pay encountered by the 8 production wells > 30 % longer than forecast Catcher – Initial production delivery rate per well >40% higher than predicted on average • Improved production profiles anticipated of Burgman c.60 kboepd • Review of FPSO capacity underway Improved production profile anticipated Plateau production up 20% on sanction January 2018 | P17
Tolmount – infrastructure partnership • Partnership with Dana Petroleum and CATS Management Ltd (1) PMO • Dana and CML will jointly own: CML 19% 31% – platform Capex – export pipeline Split • Tolmount gas will use the facilities Dana – LoF tariff 50% • Premier’s share of project capex $100m • Premier retains 50% equity interest in the licence • Excellent project economics – IRR >50% at gas price of 30p/therm Estimated Tolmount Capex (Gross) $m % pre 1 st gas Development Scope Gross Capex (Real, $mm) 100% Platform 90 100% High return SURF (20” pipeline to beach) 100 project robust 85% Host Terminal modifications 150 down to low Drilling (2) 64% 140 gas prices 92% PMT 70 - Total 550 (1) an Antin Infrastructure Partners portfolio company (2) Based on plan where one well is on-stream pre-1 st gas January 2018 | P18
Tolmount – progressing on schedule for FID in 1H 2018 • Initial phase: targeting 540 Bcf resources Dimlington Terminal >1 bcf gas processing capacity, 600 mmscfd installed compression capacity • Peak production capacity 300 MMscfd plus additional condensate processing • FEED contracts awarded; engineering Tolmount underway • Evaluation of proposals received for major project scopes (including platform and Perenco Dimlington pipeline) underway SNSPS (Cleeton / • Draft FDP submitted to OGA Ravenspurn) Centrica Easington West Sole Rough & York (connected to • Timing: Perenco Easington) Gassco Langeled – FID 2018 Tolmount Ormen Lange – First gas 2020 Subsurface Depletion Plan • 4 initial development wells in Tolmount • Future phases TE , TFE & Mongour Offshore Facilities • NUI platform with 6 slots / 4 wells • Offshore PWT treatment • Riser / J-tube pre-investment for area development • 20” x 48kn Gas Export pipeline • 3” MeOH (and CI) import pipeline Host Terminal • Dimlington host • New reception & condensate processing • Shared gas processing & compression January 2018 | P19
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