2000 I I NTERIM NTERIM R R ESULTS ESULTS P P RESENTATION 2000 - - PowerPoint PPT Presentation
2000 I I NTERIM NTERIM R R ESULTS ESULTS P P RESENTATION 2000 RESENTATION 13th September 2000 Version 1.1 2000 Interim Results Presentation PRESENTATION Introduction and Overview Charles Jamieson Results John van der Welle Operations
13th September 2000
Version 1.1
2000 Interim Results Presentation
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Introduction and Overview Results Operations Asia Gas Markets Summary
Charles Jamieson John van der Welle Richard Liddell Steve Lowden Charles Jamieson
2000 Interim Results Presentation
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Delivery of major gas developments
Commercialise existing discoveries
development option
Exploration programme restarted
Improved finances
Strengthened management
OBJECTIVE OUTCOME
2000 Interim Results Presentation
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2000 Interim Results Presentation
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1999
2000
Realised oil prices ($/bbl) (post hedging) Production volume (mboepd) Turnover Operating profit / (loss) before exceptionals Profit / (loss) after tax Operating cashflow (after interest and tax) Capital expenditure (including JVs) Net debt (including JVs) Gearing (including JVs) 11.8) 29.2) 39) (3) (13) (9) 96) 399) 205) 21.4 25.9 54 18 3 4 69 359 111
£m £m
% %
2000 Interim Results Presentation
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Production (mboepd) Realised oil price ($/bbl) Turnover less: share of JVs turnover Group turnover Operating costs Amortisation Other Gross profit Administration costs Operating profit / (loss) Operating profit in JVs Total operating profit / (loss) Profit on disposal Net interest Exchange gain Profit / (loss) before tax Taxation Profit / (loss) after tax Earnings per share - basic and diluted (pence) 25.9) 21.4) 54) (5) 49) (9) (17) (3) 20) (4) 16) 2) 18)
(8) 3) 13) (10) 3) 0.2)
1999
29.2) 11.8) 39) (3) 36) (14) (18) (3) 1) (5) (4) 1) (3) 1) (7) 1) (8) (4) (13) (1.2)
£m 2000
Hedging loss - £11.4m Underlying unit opex at £3.80/boe – impact of Kyle EWT, field declines Underlying DDA unchanged at £3.59/boe Cessation of interest capitalisation on Yetagun Production down 11% due to natural field declines, Fergus shutdown, offset by Kyle EWT and Yetagun Increased PRT on Wytch Farm due to higher prices and
£m
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Net cashflow from operations Net interest Taxation Operating cashflow (after interest and tax) Capital expenditure Yetagun financing Investment in JV Net cashflow Repayment of advance from JV partner Exchange/other Movement in net debt Opening net debt Closing net debt 25) (11) (10) 4) (61)
(3) (60)
(15) (75) (171) (246) 3) (11) (1) (9) (76) 85)
(16) (14) (30) (289) (319)
1999 £m
Higher taxes on higher profits Build-up capital expenditure Increase in line with higher net revenues
Exploration Fields Excl JV £m 6 55 61 JV £m 4 4 8 Total £m 10 59 69
2000 £m
Note: excludes JVs
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2000 (incl. JVs) £m
Cash Debt Net debt Shareholders’ funds Gearing ratio 103 462 359 322 111
2000 (excl. JVs) £m
100 346 246 NA NA % %
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Drawn at 30.06.00 £m
Facilities £m
Bank credit $250m (final maturity 2003) Loan notes $280m (final maturity 2008) Convertible capital bond (maturity 2005) Yetagun financing $158m - $155m drawn (maturity 2008) Availability as at 30.06.00 Accrued Yetagun interest Total Cash Net debt (incl. JVs) 132 186 28 346 104 450 12 462 103 359 166 186 28 380 105 485
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2001 2002 2004 140 100 80 40 20
(£ million)
60
Crossover in sight – falling capex and rising cashflow
2000 2003
Myanmar Pakistan Indonesia UK
120
2000 Interim Results Presentation
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2000 Interim Results Presentation
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2001 2002 2004 80,000 40,000 20,000
Production (BOEPD)
60,000 2000 2003
Note: Yetagun volumes are set at contracted level including Take or Pay Myanmar Pakistan Indonesia UK
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DELIVERING OPERATIONS PERFORMANCE
Production commenced 7th May 2000 Project delivered on time, on budget Well managed transition into production operations Focus on operations performance Phase II engineering contracts to be awarded in October
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Dec 99
5000 4000 3500 500 MW 2500
4500 3000 2000 1500 1000
Mar 00 Jun 00 Sep 00 Dec 00 Jun 01 Sep 01 Dec 01 Mar 02 Jun 02 Dec 02 Sep 02 Mar 01
Ratchaburi Generation Capacity
CCGTs Thermal 2 Thermal 1 TRI Energy SCGTs Plant Efficiency SCGTs – 30%; Tri Energy / EGAT CCGTs – 40%; Thermal – 40%
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DELIVERING OPERATIONS PERFORMANCE Premier’s third platform success in 3 years Top quartile development Impressive cycle time and cost Jacket installed - deck and other facilities ahead of schedule Concurrent focus on delivering operations performance
S O N D J F M A M J J A S O N D J F M A M J J A EPCI CONTRACT AWARD EARLY GAS AVAIL. CONTRACT
KEY MILESTONES
INSTALL JACKET COMMISSIONING & PIPELINE GAS AVAIL.
EPCI EXECUTION
Engineering & Procurement Jacket & Piles Fabrication Topsides Fabrication Transport & Install AGX Jacket & SA-21 P/Line Transport & Install AGX Deck & Compr. Module Hook-Up & Commission AGX Components
INTERFACES
S/D Anoa Platform Modifications Drilling Programme (SA-21 & Workovers) Early Gas Production Skid WNTS Interfaces P/LINE REPAIRS/DRYING MONSOON SEASON Description RISER TIE-IN 1999 2000 2001 10 20 30 40 50 60 70 80 90 100
O N D J F M A M J 2000 J A S O N D J F M 2001 A M J
PERCENTAG E
Plan Cum Act Cum
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Anoa Platform KF Platform Jemaja Mubur Bintan Batam
MALAYSIA INDONESIA
G A S L I N E T R U N K L I N E
DELIVERING OPERATIONS PERFORMANCE
656 km pipeline installed, on budget, 7 months ahead of schedule Premier - driven plan for early gas sales Significant acceleration secures early production
SINGAPORE
Routine weld repairs in progress
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DELIVERING OPERATIONS PERFORMANCE
Ranger operator - Premier drive Early production commenced May 2000
400,000 Premier barrels delivered to date Discussions in progress with Shell/Maersk
Preparing to test second well
S HU T T L E T A NK E R P E T R O J A R L
W e ll 2 9/2c
2Z S
th K yle Drill C e n tre V a lv e P ro tec tio n F ra m e North K y le D rill C e n tre T ee P ro te c tion F ra m e W e ll 29 /2c
Z C
tro l U m bilic a l T C
n e c tio n 8” P rod u c tio n P ip e lin e a n d C
tro l U m b ilic a l A P P R O XIMA T E L Y 12K m T O B A NF F F P S O R is ers 8” P ro d u c tio n lin e B u n dled E lec tro /H y d ra u lic C
tro ls U m b ilic a l R is e r B a s es
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DELIVERING OPERATIONS PERFORMANCE
Premier innovative development arrangement Brovig production services – FPSO Crystal Ocean Shared revenue agreement Early production March 2001
agreement
Full production November 2001 Premier driving assets through the Value chain
2000 Interim Results Presentation
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2000 Interim Results Presentation
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Premier’s focus areas in South and Southeast Asia will witness growth and evolution in their gas markets.
SOUTH ASIA SOUTHEAST ASIA Economic Development Economic Development Gas Consumption Gas Consumption Gas Sales Opportunities Gas Sales Opportunities
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Southeast Asia has rebounded from the crisis of 1997, and the short term growth outlook for countries in the region ranges from 5-7%.
GDP Growth in SE Asia (%)
15 10 5
1998 1999 2000 (forecast) 2001 (forecast) 1997 1996 Indonesia Malaysia Singapore Thailand Myanmar Pakistan
Source: World Bank, Consensus Forecasts Inc.
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Although some new projects have suffered delay… …gas production remained Steady through-out Asia downturn
Bangladesh Pakistan
BCFD
Myanmar India 0.0 1.0 2.0 3.0 4.0 Indonesia Malaysia Singapore Thailand
1997 1998 1999 2000F 2001F 2002F Data source: BP World Energy stats 2000
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2000 2010 2000 2010 2010 2000 2010 2000 2010
Indonesia Malaysia Singapore Thailand Myanmar
Projected power generation by fuel (% share)
20 40 60 80 100 Coal Oil Gas Other (primarily hydroelectric)
Pakistan
2010 2000 2000
Most countries in Southeast Asia are substituting gas and coal for oil in power generation
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Proposed pipeline Existing pipeline Resource Market
North Central India
East India
Offshore Pakistan Assam/ Tripura Basin
JDA Arun LNG Plant N.E. Sumatra Pangkah Kangean
East Java
Offshore Myanmar
Miocene Reefs Miocene Reefs West India Basin Mideast LNG Kirthar
A schematic map of key gas basins with potential markets suggests a wealth of opportunities
East Bengal
West Java
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M12 M13 M10 M14
Yadana Yetagun Bangkok Wang Noi Ratchaburi Rayong
Andaman Sea
Yangon
Gulf of Thailand
Domestic markets require 100 mmscfd by 2002 and 250 mmscfd by 2004 Thailand current demand from Myanmar 725 mmscfd by 2001 Estimated shortfall of 300-400 mmscfd by 2005 Further Myanmar gas supplies to Thailand competitive Potential NE Sumatra Markets
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Qadirpur ML
Lahore Islamabad Quetta Sukkur Karachi
Zamzama Discovery
240 mmscfd to Karachi from Bhit 240 mmscfd base load to SNGPL 100 mmscfd raw gas to SNGPL 50 mmscfd to Liberty Power 150 mmscfd required at Ghuddu 200-400 mmscfd potential demand at Multan 70 mmscfd to Karachi Up to 400 mmscfd shortfall in Karachi
Bhit & Badhra
50 mmscfd required in Quetta 100 mmscfd grid capacity
Zarghun Discovery
3.9 tcf discovered in 4 fields Significant remaining potential FOLD BELT
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Semangkok Kerteh
Sumatra Kalimantan Java Timor Sulawesi
BRUNEI JAKARTA Surabaya SINGAPORE Pagerungan Natuna ‘D’ Alpha Natuna Ujung Pangkah
Further 300-500 bcf discovered 150-300 mmscfd immediate market, 300 mmscfd for power generation 325 mmscfd supply agreed; further 300 mmscfd anticipated 150-250 mmscfd required
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Pelikan Anoa
KRA KF KH
Open Open Open Area I Duyong Igunana Open Open Ande Ande Lumut Gajah Baru Naga Area III
Ande Ande Lumut-1 Oil Discovery 360mmbbl OIP April 2000 New oil play extension Betet-1 Oil Prospect Sept-Oct 2000 Gajah Baru 50mmscfd
Naga & Iguana Discoveries H1 2000
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Opportunities to sell more gas from existing portfolio using existing infrastructure Significant opportunities within the South/South East Asia region Looking to supplement portfolio with new low entry cost - high opportunity value business Synchronise future investment with future production and income growth
2000 Interim Results Presentation
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2000 Interim Results Presentation
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Positives
But….
Focus on unlocking value for all shareholders