Clean Energy For the MENA Region’s Tomorrow Gas Arabia Summit , Dubai Dr Patrick Allman-Ward Chief Executive Officer Dana Gas PJSC January 2015 www.danagas.com 1
Forward Looking Statement Forward-looking statements are based on certain assumptions This presentation contains forward-looking statements which may be identified by their use of words like “plans,” and expectations of future events. The Company, its subsidiaries and its affiliates (the “Companies”) referred to in “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual statements that address expectations or projections about results, performance or achievements of the Companies, could the future, including, but not limited to, statements about the thus differ materially from those projected in any such forward- strategy for growth, product development, market position, looking statements. The Companies assume no responsibility expenditures, and financial results, are forward looking to publicly amend, modify or revise any forward looking statements. statements, on the basis of any subsequent developments, information or events, or otherwise . www.danagas.com 2
Presentation Outline Middle East – Energy dynamics and growing role of gas Dana Gas – Regions leading gas independent Providing solutions to local gas market challenges Summary www.danagas.com 3
Gas is the growth fuel of the 21 st Century. It has strong environmental credentials, is cost competitive , is accessible and available in abundance Current full lifecycle costs for new-build power generation including externalities (USD per boe) 300 Fall in oil price has brought its price 250 below renewables and more into line Full Life Cycle Cost (USD / boe) with gas prices 200 ? 150 ? Subject to Not yet c. 10% supply utilisation of working at 100 price ? scale capacity uncertainty No c. 20% full c. 25% c. 35% 50 utilisation cycle utilisation utilisation of cost of of capacity capacity audit capacity 0 Solar PV Solar PV CCS Coal Offshore Biomass Nuclear Onshore New New Oil in Jul Oil in Dec (Germany) (South USA) wind Inciner. (EPR) wind (UK) Hard coal CCGT @ 2014 2014 LEA price Openness of gas industry Huge global conventional range % of 2013 gas production CO2 emissions of various fuels in power generation and unconventional gas resources Qatar 250+ years of Nigeria Latin America 5% Carbon Intensity (tCO2 per MWh) 1.2 1% Other FSU gas resources Asia Pacific 8% 3% North Save 60% today at at 2012 global 18% Other 1.0 America 15% demand levels low cost… LatAm Left 0.8 16% China, Europe other ME … or save extra 30% in 5% Algeria c. 825 13% 0.6 2% Iran uncertain future at 5% tcm 0.4 Turkmen. very high cost OECD 2% 36% 0.2 Russia Former Soviet 18% Middle East + 0.0 Union Africa Nuclear Biomass Offshore Gas / Coal Coal CCS Gas Coal 26% CCS 27% Wind www.danagas.com 4
Middle East gas demand is poised for continued growth as the region’s population and economy grows in coming decades GDP Growth of Middle East 1 Regional Gas Demand Growth in Last Decade 3,500 CAGR: 8.2% 3,000 500% 162 2013 Gas 2,500 GDP, USD bn Demand 450% 2,000 (bcm pa) 1,500 400% Total Gas Demand Growth since 2003 1,000 350% 500 Gas is 50% of regions Energy Mix in 2013 0 300% 1990 1995 2000 2005 2010 2015 2019 Primary Energy Demand of Middle East 1 250% 428 Gas Other 1 600 200% Primary Energy Demand, bcme pa 51 Gas CAGR: 4.5% 1 400 117 150% 1 200 737 438 1 000 100% 800 600 50% 400 53% 50% 0% 49% 200 50% China Middle India Japan US EU 34% - East 1990 2012 2020 2030 2040 www.danagas.com 5 Source: IEA, IMF, BP Statistical Review 2014 1. Middle East comprises: Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE, Yemen
Middle East has abundant gas resources to fulfil both domestic and international gas demand for over a century Gas Resource Holders in Middle East (incl. Egypt) (Total Reserves: c. 82 Tcm) 40 Proved Gas Reserves, tcm Access to Private Capital 35 Based on IHS estimates Open 30 60-70% of Middle Eastern Potentially Open gas resources are 25 Incl. KRI associated gas Closed/inaccessible resource 20 estimates 15 10 5 0 Iran Qatar Iraq Saudi Arabia United Arab Egypt Kuwait Oman Yemen Syria (Incl. KRI) Emirates 2013 Gas Demand in Middle East (incl. Egypt) 180 (Total Demand: c. 473 bcm pa) 2013 Gas Demand, bcm pa 160 140 120 100 80 60 40 20 0 Iran Saudi United Arab Egypt Qatar Kuwait Bahrain Oman Yemen Syria Iraq Arabia Emirates (Incl. KRI) www.danagas.com 6 Source: BP Statistical Review 2014, EIA
Dana Gas is a gas focused regional independent E&P company and is listed on the ADX Dana Gas is operating at the heart of the Dana Gas is a MENASA focused gas World’s Largest Hydrocarbon region independent headquartered in the UAE Dana Gas is quoted in the UAE stock exchange (Abu Dhabi Securities Exchange). Bloomberg: DANA:UH Shares outstanding: ca. 6,960 million Market capitalisation: approx. $ 1.2 billion Enterprise value: $ 1.8 billion Net Debt/(Cash) 1 : $ 602 million (end 2014 Q3) Current Production: 70.5 kboed (2014 9M) 2P Reserves 2 : 150 mmboe Strong Corporate Governance structure and a unique pan-MENA Board of Directors access to business opportunities in the world’s largest hydrocarbon region www.danagas.com 7 1.Total interest bearing debt less cash 2.Includes Egypt & UAE reserves only at end of 2013
Given strong gas demand fundamentals and resource potential, Dana Gas is uniquely positioned to grow across the region Reserve & Resources Dana Gas is operating at the heart of the world’s largest hydrocarbon bearing region Production Profile CAGR 14% Business Model across the gas value chain Mid Stream and Downstream asset EBGDCo – Liquid Extraction plant (LPG) UGTC & SajGas - Gas Transportation and Processing 35% in Crescent Natural Gas Corporation Limited (CNGCL) – Gas marketing www.danagas.com 8
Dana Gas is a leading reserve holder and producer in its core areas in MENA region 2014 Production Ranking of Independents in Dana Gas’ Region of Operation 1 80 2014 WI Production, kboepd 70 60 50 40 30 20 10 0 Reserve Ranking of Independents in Dana Gas’ Region of Operation 1 1,600 Gas 1,400 2P Reserves, mmboe 1,200 Oil 1,000 800 600 400 200 0 www.danagas.com 9 Source: Wood Mackenzie 1. Dana Gas Region of Operations: Egypt, Iraq, UAE
To meet its growing gas demand, the UAE needs to tap into its domestic resources and create greater connectivity to global LNG markets. As Dana Gas, we are focused on developing gas resources in the region for local needs UAE Gas Demand Balance Map of UAE with major oil and gas infrastructure Zora Dolphin Pipeline UAE Gas Production UAE Gas Demand 56 bcmpa 68.7 bcmpa Imported Gas Export 16.4 (Qatar) 24% 7 12% Imported 1.5 LNG 2% 49 49 Domestic Domestic 88% 74% www.danagas.com Source: BP Statistical Review 2014 10
UAE: Zora Project Update Overall project progress is in line with plans for first gas in 1H 2015 with a capacity of 40 mmscfd (6,650 boepd ) All major facilities contracts now awarded Offshore platform fabrication progress 70% Line Pipe manufactured and transported to Abu Dhabi and coating in progress All onshore and offshore major procurement items ordered Onshore plant site work started Offshore platform under fabrication www.danagas.com 11
Despite a challenging business environment; Egypt gas fundamentals are robust Egypt Primary Energy Supply (mln toe pa) Egypt GDP (USD bln) 100 Primary Energy Demand (mln toe pa) Other Renewables 90 Coal 80 Hydro electric Oil 70 Natural Gas 60 50 40 30 20 10 0 Onshore Nile Delta steady and Gas consumption in Egypt to exceed critical gas supply source production for first time since 1995 www.danagas.com 12 Source: BP Statistical Review 2013, IMF, Morgan Stanley
Dana Gas is the largest independent gas producer and 4 th largest onshore producer in Egypt 2014 Gas Production Ranking in Egypt 2014 WI Production, mmcfpd 1,000 (* denotes company is an operator) 800 Dana Gas Egypt Credentials: 9 th largest producer 600 6 th largest operator 4 th largest onshore producer 400 200 0 EBGDCO LPG Plant Gas Reserve Ranking of Independents in Egypt (Dana Gas holds 26.4% of the project) 700 600 Gas Reserves, bcf 500 400 300 200 100 0 www.danagas.com 13 Source: Wood Mackenzie 1.Edison holds 100% operating interest in Abu Qir, but the development is operated by a 50:50 JV with EGPC – Edison not designated as operator
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