uk – cameroon trade & investment forum may 7 th 2014
TRANSCRIPT
UK – CameroonTrade & Investment
ForumMay 7th 2014
Glencore
• leading integrated producer and marketer of commodities, with worldwide activities in the production, refinement, processing, third party procurement, storage and transport of those products
• more than 90 offices in over 50 countries; operations comprise over 150 mining and metallurgical sites, oil production assets, farms and agricultural facilities. We employ approximately 200,000 people, including contractors
• listed on London, Hong Kong and Johannesburg Stock Exchanges
• current rating BBB (stable) / Baa2 (stable)
• scale and commodity diversity• unique business model, fully-integrated along the supply
chain to capture value in an evolving competitive landscape
• ability to respond to changing industry dynamics• core competence in commodity marketing, logistics, risk
management and financing• leading industrial asset portfolio of diversified operations
with strong growth prospects• diversified position across multiple commodities,
suppliers and customers• world-class management team, entrepreneurial culture
and track record of value creation
At a glance
Key competitive strengths
Metals and Minerals
Energy ProductsAgricultural
Products
• Copper• Zinc/Lead• Aluminium• Ferroalloys• Nickel• Iron Ore
• Coal
• Oil
Grains
Oils/Oilseeds
Sugar
Cotton
Key financials
Revenue Adjusted EBITDA Adjusted EBIT
236,236
13,086
8,591
239,673
13,071
7,434
(US$ m)
2012 2013
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3
Where we operate
More than 90 offices in over 50 countries, over 150 industrial sites and facilities
A high value, liquids-based strategy…with trading synergies
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Attractive and balanced portfolio of exploration, development and production assets
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West and Central African focus primarily targeting oil plays
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Significant production growth from EG (Alen) and Chad in 2013 to add to existing Aseng production
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Demonstrated ability to source attractive opportunities and prove up resources
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Strong in-house technical and financial capabilities
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A growing Exploration and Production Portfolio
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E&P Portfolio Location Asset Participation
Equatorial Guinea
Participating Interest
Cost Bearing Interest
Block I 23.75% 25.00%
Block O 25.00% 28.57%
Block X 37.50% 44.10%
Block V * 80.00% 100.00%
Block EG 05 * 60.00% 75.00%
CameroonParticipating
InterestCost Bearing
Interest
Matanda * 90.00% 90.00%
Bolongo * 100.00% 100.00%
Tilapia 33.33% 33.33%
ChadParticipating
InterestCost Bearing
Interest
DOB/DOI 33.33% 33.33%
Mangara Field 35.00% 41.17%
Badila Field 35.00% 41.17%
DOH 33.33% 33.33%
Doseo/Borogop 33.33% 33.33%
* Glencore operated
MoroccoParticipating
InterestCost Bearing
Interest
Boujdour Offshore*
38.25% 51.00%
Foum Ognit Offshore
18.75% 25%
EG05 PSC
Ratified
A track record of success
Exploration
2004 2005 2006 2007 2008 2009 20112010 2012 2013 2014 2015 2016
EG Block O PSC Signed
Alen Discovery
EG Block I Farm-In
Aseng Discovery
Cameroon Matanda PSC Signed
Diega Discovery
EG Block X PSC Signed
Cameroon Bolongo PSC Signed
EG Block V Farm-in
Cameroon Tilapia Farm-in
ChadFarm-in
Carla Appraisal
Oak Appraisal
Development and Production
Aseng POD Approval Alen POD Approval
Aseng First Oil
Badila First Oil
Alen First Oil
Matanda Drilling
• A strategy started in the early 2000’s, now translating into reserves and production
Morocco Farm-in
Krim Exploration Well
Drilling History:
• 52 wells drilled since 2004
• 17 exploration wells
• 21 appraisal wells
• and 14 development wells
• 5 dry holes
Carla Discovery Oak Discovery
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Growing upstream production
Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-140
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20
30
40
50
60
70
80
90
100
110
120
Gross production 2011 - 2014
Badila
Alen
Aseng
Pro
dcu
tio
n (
KB
PD
)
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• NM-3x well confirms significant wet gas play in Cretaceous
• Well results currently being evaluated
• Further drilling opportunities in the license with total potential of >1tcf
• Gas monetisation feasibility study on going
Cameroon – Matanda
Matanda (Glencore 90% Operator, AFEX 10%)
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• Oak oil field discovered in 2012
• Resource potential in the development area of 30 – 100mmbbls oil
• Current appraisal drilling programme nearing completion
• Development feasibility study set to commence
Bolongo (Glencore 100% & Operator)
Cameroon – Bolongo
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Conclusions
• Cameroon is a core area for Glencore upstream investment
• Exploration investment to date in the Bolongo and Matanda licenses exceeds US$460mm
• Appraisal results from the Oak discovery may lead to a development requiring significant investment.
• Future potential for significant gas development exists in the Matanda license
QUESTIONS?
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