Tullow Oil Plc · LSE:TLW
Tullow Oil — 2014 Ghana Investor Forum
24 slides from Tullow Oil's conference presentation, May 7, 2014
Slide 1: 2014 Ghana Investor Forum
2014 GHANA INVESTOR FORUM 7 May 2014
Slide 2: 2014 Ghana Investor Forum
2014 GHANA INVESTOR FORUM 2014 GHANA INVESTOR FORUM
Slide 3: 2013 full year results summary
2014 GHANA INVESTOR FORUM 2013 full year results summary 2013 2012 Change Sales revenue $2,647m $2,344m +13% Gross profit $1,440m $1,345m +7% Administrative Expenses ($219m) ($191m) Profit on disposal $30m $702m Exploration costs written off1 ($871m) ($671m) Operating profit $381m $1,185m -68% Profi
Slide 4: Delivering against our strategy
2014 GHANA INVESTOR FORUM Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Monetisa
Slide 5: High margin production cash flow
2014 GHANA INVESTOR FORUM High margin production cash flow High Margin Production Cash flow 2013 Group actual production: 84,200 boepd 2013 West African Revenue 2014 Group production guidance: Eq Guinea 79-85,000 boepd 14% Gabon 19% Mauritania/ Congo Côte d’Ivoire (Brazz) $2.25 4% West Africa Ghana
Slide 6: Jubilee – world class asset delivering long term cash flow
2014 GHANA INVESTOR FORUM Jubilee – world class asset delivering long term cash flow High Margin Production Cash flow Strong reservoir performance • Existing well production capacity >130mbd • Final Phase 1A wells to be completed as required Production increase awaiting Gas export • Gas export facil
Slide 7: Jubilee – 100 cargo offtakes, 100 million barrels
2014 GHANA INVESTOR FORUM Jubilee – 100 cargo offtakes, 100 million barrels High Margin Production Cash flow Milestone production • On 14 April, the FPSO Kwame Nkrumah completed the 100th off-take from the Jubilee Field • Closely followed by the production of the 100 millionth barrel from the facili
Slide 8: Cash flow growth from a pipeline of future projects
2014 GHANA INVESTOR FORUM Cash flow growth from a pipeline of future projects High Margin Production Cash flow KENYA - South Lokichar Basin • Development studies underway; Material growth • Single basin has potential to produce in excess of 100,000 bopd gross. potential 2016+ UGANDA - Lake Albert Ri
Slide 9: Exploration & Appraisal
2014 GHANA INVESTOR FORUM Exploration & Appraisal Exploration & Appraisal 900 Ekales-1 & Agete-1 • 200mmboe / year, steady performance 800 • Strong run of success in Uganda & Ghana Twiga-1 & Etuko-1 • New basins campaigns deliver continuity Ngamia-1 700 • Low cost Kenya & Norway extend the trends •
Slide 10: 2014+ exploration programme - targeting 200mmboe p.a.
2014 GHANA INVESTOR FORUM 2014+ exploration programme - targeting 200mmboe p.a. Exploration & Appraisal Key exploration wells in the next 18 months EAST AFRICAN NORWEGIAN CONTINENTAL SHELF RIFT BASINS Norway: Ethiopia: Hanssen Q2 2014 Shimela in progress Lupus Q2 2014 Kenya: Hagar Q1 2015 Dyepa Q2 2
Slide 11: Strong record of resource additions & reserves replacement
2014 GHANA INVESTOR FORUM Strong record of resource additions & reserves replacement Exploration & Appraisal 2P Commercial Reserves and 2C Contingent Resources Total Resource Potential as of 31 December 2013 as of 31 December 2013 South & East Africa 2P Commercial Reserves 41% 382.4 mmboe 1,409 Euro
Slide 12: East Africa: Multiple basins with new oil province potential
2014 GHANA INVESTOR FORUM East Africa: Multiple basins with new oil province potential Exploration & Appraisal Possible campaign scenarios 8/12 basins successful 12 Gross Potential in Billion Barrels 10 • Pioneering basins: - Lake Albert, Uganda (1.7Bbo) 8 - South Lokichar, Kenya, 7/8 (>600mmbo) 4/1
Slide 13: Monetisation options & portfolio management
2014 GHANA INVESTOR FORUM Monetisation options & portfolio management Monetisation Options & Portfolio Management Southern North Sea Assets Bangladesh UK & The Netherlands interests • Schooner & Ketch sale agreed • Sale of Bangladesh for $75.6m assets to Kris Energy completed in • Marketing of remai
Slide 14: Selective Developments: TEN project
2014 GHANA INVESTOR FORUM Selective Developments Selective Developments TEN PROJECT Project execution underway and on track • West Leo rig secured and first two development wells drilled • Centennial Jewel tanker-FPSO conversion underway in Singapore • All subsea contracts awarded and major equipmen
Slide 15: East Africa – major onshore Tertiary Rift Basin projects
2014 GHANA INVESTOR FORUM East Africa – major onshore Tertiary Rift Basin projects Selective Developments Kenya – Operated world-class onshore oil project • Favourable conditions allowing for rapid progress • Clear plan towards 2015/16 development sanction • Pipeline leadership offers regional benef
Slide 16: Funding: Strong balance sheet & financial flexibility
2014 GHANA INVESTOR FORUM Funding: Strong balance sheet & financial flexibility Funding Business Strategy Funding Strategy Financing Initiatives Additional cash flow from new production Commercial Bank ~$4bn debt facilities Facilities Operating Cash High Monetisation Exploration Flow Margin and Appr
Slide 17: 2014 Ghana Investor Forum
2014 GHANA INVESTOR FORUM 2014 GHANA INVESTOR FORUM
Slide 18: How we do business
2014 GHANA INVESTOR FORUM How we do business Creating Shared Prosperity • We manage our business in a responsible way to maximise sustainable development opportunities for host nations. • We are committed to ensuring long-term benefits to local people and economies where we operate. • The foundation
Slide 19: Open, transparent disclosure
2014 GHANA INVESTOR FORUM Open, transparent disclosure Economic contribution • We are committed to transparent disclosure of payments to governments and other stakeholders in the countries in which we operate • Revenue transparency and disclosure enables a country’s citizens to hold their government
Slide 20: Socio-economic contribution in Ghana
2014 GHANA INVESTOR FORUM Socio-economic contribution in Ghana 2013 • $500+ million: Total socio-economic contribution SOCIO-ECONOMIC CONTRIBUTION • $130 million spent with local suppliers – over 40% of Tullow Ghana contracts under $100,000 were awarded to local businesses – 24% of contracts between
Slide 21: 2014 Investor Forum
2014 GHANA INVESTOR FORUM 2014 INVESTOR FORUM
Slide 22: Delivering against our strategy
2014 GHANA INVESTOR FORUM Delivering against our strategy 2013 2014 + High Margin Production $1.9 billion Cash flow growth Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Monetisa
Slide 23: 2014 Investor Forum
2014 GHANA INVESTOR FORUM 2014 INVESTOR FORUM
Slide 24: Tullow Oil plc
2014 GHANA INVESTOR FORUM Download the Tullow Investor Relations and Media App from the Apple and Android stores: Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Follow Tullow on: Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: chris.perry@tullowoil.com