Investor Presentation November 2017
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. November 2017 | P1
Executive Summary
2017 – a year of strong delivery Production Cost Base Disposals Catcher YTD YTD YTD YTD Production average Opex of $15.9/boe; Wytch Farm and FPSO arrived in the ytd 76.6 kboepd FY capex guidance Pakistan sales field - commissioning reduced to $300- announced; other underway; positive 310m processes ongoing drilling results Full Year Target Full Year Target Full Year Target Full Year Target FY Guidance remains Completion of Wytch Deliver first oil by year Deliver FY guidance of to 75-80 kboepd Farm and Pakistan end opex c$16/boe and capex of $300-310m Tolmount Sea Lion Exploration Net Debt Reduction YTD YTD YTD YTD HoT signed with Negotiating funding World class oil Positive cash flow in infrastructure packages discovery at Zama-1, H1; ytd in line with partner; draft FDP Mexico forecast submitted to OGA Full Year Target Full Year Target Full Year Target Full Year Target Progress financing and Define appraisal and Generate positive net Progress for FID in H1 commercial initiatives development plans for cash flow post 2018 Zama disposals and debt reduction November 2017 | P3
Production overview Largest 5 fields account for c. 70% of production November 2017 | P4
Development portfolio >800 mmboe of discovered but undeveloped reserves and resources November 2017 | P5
Delivering on our strategy Acquisitions • Opportunistic acquisitions Stakeholder Returns Production Development Exploration • 77 kboepd • Operated • Proven basins • FPSO’s • Under drilled • Partner-funded Value Costs • $16/bbl Debt Reduction Portfolio Management • Disposals – realising value November 2017 | 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 • $15-$17/bbl Debt Reduction Balance Sheet Management • Free cash flow 2018-2022 reducing debt • Net debt : EBITDA <3x November 2017 | P7
Producing Portfolio
Chim Sáo, Vietnam (53.125%, operator) 2017 ytd • 15.0 kboepd • High operating efficiency and strong • Strong reservoir performance • $9/boe operating cost • 1 st infill well completed and tied-in Outlook • Further infill well planned before year end 55 mmboe at sanction Improved Production Profile 57 mmboe Current kboepd (gross) produced Previous 35 to date 20P 30 5IPST1 25 20 59 mmboe 15 reserves 10 remaining 5 0 2016 2017 2018 2019 2020 November 2017 | P9
Natuna Sea Block A, Indonesia (28.67%, operator) BIGP 2017 ytd • 12.7 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 November 2017 | P10
Huntington, Central North Sea (100%, operator) 2017 ytd • 13.5 kboepd, 23% above budget − High FPSO operating efficiency − Strong reservoir performance − HoT agreed on lease extension and extended Shell term deal Outlook • Maximise production Currently producing ~15 kboepd November 2017 | P11
Solan, West of Shetlands (100%, operator) 2017 ytd • 6.2 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 November 2017 | P12
Elgin-Franklin, Central North Sea (5.2%) 2017 ytd • 5.5 kboepd, currently >7 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 November 2017 | P13
Portfolio Potential
Catcher – on schedule for start up by year end • All 12 wells planned pre-first oil now • Arrived in North Sea in October complete confirming good quality oil • Hook up and Commissioning • Subsea activities complete; short campaign programme progressing well to support hook-up and commissioning • On schedule for 2017 first oil operations post arrival of FPSO • Important cornerstone of Premier’s debt reduction Project capex down 29% on sanction September 2017 | P15 November 2017 | P15
Catcher Commissioning Arrival in the UK and Hook-Up Commissioning 4-6 Weeks 3-4 Weeks Harbour On location Cone Plug Buoy Swivel Reinstate- Pre-Commiss- Commiss- ESDV’s * Risers Umbilical's Removal Hook-Up Stack ment ioning ioning • Where possible equipment was leak tested, commissioned and Gas export line – commissioned systems accepted by operations in Singapore prior to sail away prior to start up • The voyage and movement of the vessel and equipment requires them to be re-tested ahead of the introduction of hydrocarbons • Tanker activities – Testing of offloading hose connection – Final rotation test • Topsides activities: – Pipework: Nitrogen/helium testing; and Deluge testing – Tubing: Leak testing – Electrical & Instrumentation: Pig tail termination & tests; and Removed equipment reinstated and tested • Subsea activities – Completion of umbilical core flushing – Gas export riser dewatering – Tree & manifold valve function testing • Ready for the introduction of hydrocarbons from Catcher field Teekay shuttle tanker November 2017 | P16
Catcher 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 November 2017 | P17
Catcher – continuing positive drilling results • 13 wells completed to date Varadero – 4 on each of Catcher, Varadero and Burgman fields planned pre first oil – Phase 2 first well on Catcher • 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 November 2017 | P18
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 November 2017 | P19
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