2000 interim presentation - v1-1 - premier oil · 2016. 6. 14. · 2000 interim results...

20002000 IINTERIMNTERIM RRESULTSESULTS PPRESENTATIONRESENTATION13th September 2000

Version 1.1

2000 Interim Results Presentation

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Introduction and Overview

Results

Operations

Asia Gas Markets

Summary

PRESENTATION

Charles Jamieson

John van der Welle

Richard Liddell

Steve Lowden

Charles Jamieson


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Delivery of major gas developments

2000 HIGHLIGHTS

- Yetagun on-stream early- WNG on track for early gas

Commercialise existing discoveries - Kyle EWT out-performing/Curlewdevelopment option

- Chestnut/Brovig EWT- Bhit GSA approved- Zamzama EWT go-ahead

Exploration programme restarted - 4 discoveries in Indonesia

Improved finances - return to profitability, refinanced debt

Strengthened management - new Operations Director

OBJECTIVE OUTCOME


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RESULTS


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1999

2000 INTERIM RESULTS SUMMARY

2000

Realised oil prices ($/bbl) (post hedging)Production volume (mboepd)

TurnoverOperating profit / (loss) before exceptionalsProfit / (loss) after taxOperating 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)

21.425.9

541834

69359 111

£m£m

% %


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PROFIT & LOSS ACCOUNT

Production (mboepd)Realised oil price ($/bbl)

Turnoverless: share of JVs turnoverGroup turnoverOperating costsAmortisationOtherGross profit Administration costsOperating profit / (loss)Operating profit in JVsTotal operating profit / (loss)Profit on disposalNet interestExchange gainProfit / (loss) before taxTaxationProfit / (loss) after taxEarnings 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)

199929.2)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 ofKyle EWT, field declines

Underlying DDA unchanged at £3.59/boe

Cessation of interestcapitalisation on Yetagun

Production down 11%due to natural field declines,Fergus shutdown, offset byKyle EWT and Yetagun

Increased PRT onWytch Farm due to higher prices and overseas taxes £2.6m

£m


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CASHFLOW

Net cashflow from operationsNet interestTaxationOperating cashflow (after interest and tax)Capital expenditureYetagun financingInvestment in JVNet cashflowRepayment of advance from JV partnerExchange/otherMovement in net debtOpening net debtClosing 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 onhigher profits

Build-up capitalexpenditure

Increase in line withhigher net revenues

Exploration

Fields

Excl JV£m6

55

61

JV£m4

4

8

Total£m10

59

69

2000£m

Note: excludes JVs


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BALANCE SHEET

2000(incl. JVs)

£m

CashDebtNet debtShareholders’ fundsGearing ratio

103462359322111

2000(excl. JVs)

£m

100346246NANA% %


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Drawn at30.06.00

£m

COMMITTED DEBT

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 30.06.00Accrued Yetagun interestTotalCashNet debt (incl. JVs)

13218628

34610445012

462103359

16618628

380105485


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2001 2002 2004

140

100

80

40

20

0

(£ m

illio

n)

60

Crossover in sight –falling capex and rising cashflow2000 2003

CAPITAL EXPENDITURE BY COUNTRY

MyanmarPakistanIndonesiaUK

120


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OPERATIONS


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2001 2002 2004

80,000

40,000

20,000

0

Prod

uctio

n (B

OEP

D)

60,000

2000 2003

PRODUCTION BY COUNTRY

Note: Yetagun volumes are set at contracted level including Take or Pay

MyanmarPakistanIndonesiaUK


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MYANMAR –YETAGUNDELIVERING 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 awardedin October


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Dec 99

5000

4000

3500

500

0

MW 2500

YETAGUN NEAR TERM DEMAND LOGISTICSRatchaburi Power Plant Set for Completion 2001

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 CapacityCCGTsThermal 2Thermal 1TRI EnergySCGTs

Plant Efficiency SCGTs –30%; Tri Energy / EGAT CCGTs –40%; Thermal –40%


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INDONESIAN - ANOA Gas Export (AGX)DELIVERING OPERATIONS PERFORMANCE

Premier’s third platform success in 3 years

Top quartile development

Impressive cycle time and cost

Jacket installed - deck and other facilitiesahead 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

E P C I C O N T R A C T A W A R D EARLY GAS AVAIL . C O N T R A C T

K E Y M I L E S T O N E SINSTALL JACKET C O M M I S S I O N I N G

& P IPEL INE GAS AVAIL .

E P C I E X E C U T I O NEngineer ing & Procurement

Jacket & Pi les Fabr icat ion

Topsides Fabr icat ion

Transport & Insta l l AGX Jacket & SA-21 P/L ine

Transpor t & Insta l l AGX Deck & Compr. Module

Hook-Up & Commiss ion AGX Componen ts

I N T E R F A C E S S / DAnoa Plat form Modi f icat ions

Dr i l l ing Programme (SA-21 & Workovers)

Ear ly Gas Product ion Sk id

WNTS In ter faces P/LINE REPAIRS/DRYING

M O N S O O N S E A S O N

Descript ion

RISER TIE-IN

1999 2000 2001

0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

8 0

9 0

1 0 0

O N D J F M A M J2000

J A S O N D J F M2001

A M J

PERC

ENTA

GE

Plan Cum

A c t C u m


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Anoa Platform

KF Platform

Jemaja

Mubur

BintanBatam

MAL

AYSIA

INDO

NESIA

GA

S LI

NE

TRU

NKL

INE

INDONESIA –WEST NATUNA GAS PIPELINEDELIVERING OPERATIONS PERFORMANCE

656 km pipeline installed, on budget,7 months ahead of schedule

Premier - driven plan for early gas sales

Significant acceleration secures earlyproduction

- December 2000

SINGAPORE

Routine weld repairs in progress


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UNITED KINGDOM - KYLEDELIVERING OPERATIONS PERFORMANCE

Ranger operator - Premier drive

Early production commenced May 2000- Production to PGS Petrojarl FPSO

400,000 Premier barrels delivered to date

Discussions in progress with Shell/Maersk- Full field development via Curlew- Oil production via shuttle tanker- Gas production via St. Fergus terminal

Preparing to test second well

SHUTTLE TANKER

PETROJARL-1

Well 29/2c-12Z

South KyleDrill Centre

Valve ProtectionFrame

North KyleDrill Centre

Tee ProtectionFrame

Well 29/2c-TZ

Control UmbilicalT Connection

8” Production Pipelineand Control Umbilical

APPROXIMATELY 12Km TO BANFF FPSO

Risers8” Production line Bundled

Electro/HydraulicControls Umbilical

Riser Bases


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UNITED KINGDOM - CHESTNUTDELIVERING OPERATIONS PERFORMANCE

Premier innovative development arrangement

Brovig production services –FPSO Crystal Ocean

Shared revenue agreement

Early production March 2001- Only 6 months after developmentagreement

Full production November 2001

Premier driving assets through theValue chain


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ASIA GAS MARKETS& OPPORTUNITIES


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ASIA FOCUS AREAS

Premier’s focus areas in South and Southeast Asia will witness growth and evolutionin their gas markets.

SOUTHASIA

SOUTHEASTASIA

Economic DevelopmentEconomic Development

Gas ConsumptionGas Consumption

Gas Sales OpportunitiesGas Sales Opportunities


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ASIAN GAS MARKET OUTLOOK

Southeast Asia has rebounded from the crisis of 1997, and the short termgrowth outlook for countries in the region ranges from 5-7%.

GD

P G

row

th in

SE

Asi

a (%

)

15

10

5

0

-5

-10

-15

1998 1999 2000 (forecast) 2001 (forecast)19971996

IndonesiaMalaysiaSingaporeThailandMyanmarPakistan

Source: World Bank, Consensus Forecasts Inc.


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Although some new projectshave suffered delay…… gas production remainedSteady through-out Asia downturn

NATURAL GAS CONSUMPTION

Bangladesh Pakistan

BCFD

MyanmarIndia0.0

1.0

2.0

3.0

4.0

Indonesia Malaysia Singapore Thailand

1997199819992000F2001F2002F

Data source: BP World Energy stats 2000


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ASIAN GAS MARKET OUTLOOKGas Demand for Power Generation

20000

2010 2000 2010 2010 2000 2010 2000 2010

Indonesia Malaysia Singapore Thailand Myanmar

Proj

ecte

d po

wer

gen

erat

ion

by fu

el (%

sha

re)

20

40

60

80

100

Coal Oil Gas Other (primarily hydroelectric)

Pakistan

201020002000

Most countries in Southeast Asia are substituting gas and coal for oil inpower generation


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Proposed pipel ine

Exist ing pipel ine

Resource

M arket

NorthCentralIndia

EastIndiaOffshore

Pakistan

Assam/ Tripura Basin

W. NatunaJDA

Arun LNG Plant

N.E. Sumatra

Pangkah Kangean

EastJava

OffshoreMyanmar

S. China Sea Miocene Reefs

Miocene Reefs

West India Basin

MideastLNG

Kirthar

GAS RESOURCE DEVELOPMENT IN SOUTH AND S.E. ASIAA schematic map of key gas basins with potential markets suggests a wealth of opportunities

East Bengal

WestJava


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M12 M13M10

M14

Yadana

Yetagun

Bangkok

Wang Noi

Ratchaburi

Rayong

AndamanSea

Yangon

Gulf ofThailand

MYANMAR –Gas Sales and Markets

Domestic markets require100 mmscfd by 2002 and250 mmscfd by 2004

Thailand current demandfrom Myanmar 725 mmscfdby 2001

Estimated shortfall of300-400 mmscfd by 2005

Further Myanmar gas suppliesto Thailand competitive

Potential NESumatra Markets


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PAKISTAN - Future Gas Market Opportunities

Qadirpur ML

Lahore

Islamabad

Quetta

Sukkur

Karachi

ZamzamaDiscovery

240 mmscfd toKarachi from Bhit

240 mmscfd baseload to SNGPL

100 mmscfd raw gas to SNGPL

50 mmscfd to Liberty Power

150 mmscfdrequired atGhuddu

200-400 mmscfdpotential demandat Multan

70 mmscfdto Karachi

Up to 400 mmscfdshortfall in Karachi

Bhit & Badhra

50 mmscfd requiredin Quetta

100 mmscfd gridcapacity

ZarghunDiscovery

3.9 tcf discovered in4 fieldsSignificant remainingpotential

FOLD BELT


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Semangkok

Kerteh

Sumatra

Kalimantan

JavaTimor

Sulawesi

BRUNEI

JAKARTA

Surabaya

SINGAPORE

Pagerungan

Natuna ‘D’Alpha

Natuna

Ujung Pangkah

INDONESIA - Future Gas Market PotentialFurther 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

INDONESIA –NATUNA SEA: DISCOVERIES

Ande Ande Lumut-1Oil Discovery

360mmbbl OIPApril 2000

New oil playextension

Betet-1Oil Prospect

Sept-Oct 2000

Gajah Baru50mmscfd

on test

Naga & IguanaDiscoveries

H1 2000


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ASIA GAS STRATEGY

Opportunities to sell more gas from existing portfoliousing 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 andincome growth


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SUMMARY


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Positives- Exploration success- Commercial performance- Cashflow/capex crossover next 12 months- Upsides : portfolio, experience, NAV

SUMMARY

But… .- Continuing market concerns : countries, finances- Alliance : shareholding structure, evidence of added value- Largest discount in sector

Focus on unlocking value for all shareholders

2000 interim presentation - v1-1 - premier oil · 2016. 6. 14. · 2000 interim results...

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