Equinor ASA · OSL:EQNR
Equinor ASA — Statoil — Investor Day (October 2017)
34 slides from Equinor ASA's investor day presentation, Oct 5, 2017
Slide 1: Offshore from onshore
Offshore from onshore Site visit Stavanger/Bergen/ Stord Statoil IR 4-5 October 2017
Slide 2: Opening remarks
Opening remarks Eldar Sætre, President and CEO 4 October 2017, Forus
Slide 3: 1H 2017: Continued operating and financial progress
1H 2017: Continued operating and financial progress Hans Jakob Hegge, EVP and CFO 4 October 2017, Forus
Slide 4: 1H17: Continued operating and financial progress
1H17: Continued operating and financial progress 1H17 Guidance FCF positive at $50/bbl Brent in 2017 Cash flow $4bn positive FCF @ $52/bbl Brent (includes scrip to Q3 2017) Reduced by 8 percentage points from Comfortable in 30s; Gearing 35.6% to 27.5% YTD 15-30% long-term target range 2017: USD ~11
Slide 5: Strong cash generation – high value reinvestment
Strong cash generation – high value reinvestment Growing cash flow with flexibility1 Managing the balance sheet2 Free cash flow positive @ USD 50/bbl in 2017 Reducing net debt at > USD 50/bbl 25 Non sanct > USD 50 BE 40% Non sanct USD 40-50 20 BE Non sanct < USD 40 BE USD 50/bbl USD 50/bbl 30% USD b
Slide 6: Continued strong operational performance and cash flow
Continued strong operational performance and cash flow Arne Sigve Nylund, EVP Development & Production Norway (DPN) 4 October 2017, Forus
Slide 7: Norwegian continental shelf
Johan Castberg Snøhvit Goliat Norwegian continental shelf Hammerfest Barents Sea Harstad Aasta Hansteen Åsgard Heidrun Njord Ormen Lange Norwegian Sea Trondheim Tampen West Tampen East Troll North Sea Oseberg Bergen Oslo Grane Johan Sverdrup Area Stavanger Sleipner Area Southern & central Southern p
Slide 8: Norwegian Continental Shelf
Norwegian Continental Shelf Safe, efficient and low carbon operations Maximise value from existing ALWAYS SAFE fields and infrastructure HIGH VALUE Identify and realise LOW CARBON new oportunities Deliver profitable projects to secure future competitiveness Open Courageous Collaborative Caring 8
Slide 9: DPN: Continued strong operational performance and cash flow
DPN: Continued strong operational performance and cash flow 2017 and 2018 Focus Progress 2017 Major NCS Projects Continued sustainable improvements: Safety improvements World class projects • Continued safety improvements • SIF 0.7 YTD Q2 2017 • Improving production efficiency • Adding new capacity
Slide 10: Global gas markets developments
Global gas markets developments Jens Økland, EVP Marketing, Midstream and Processing (MMP) 4 October 2017, Forus
Slide 11: MMP maximises value across the oil, gas and electricity value chains
MMP MAXIMISES VALUE ACROSS THE OIL, GAS AND ELECTRICITY VALUE CHAINS 11
Slide 12: Statoil's mid- and downstream business demonstrates resilience
Statoil’s mid- and downstream business demonstrates resilience 1) 2) MMP guiding 1 Marketing, Midstream & Processing (MMP). Before 2015: Marketing, Processing and Renewables (MPR) 2 Before tax 12 Source: Statoil
Slide 13: European gas
European gas Several elements are driving the market Source: Statoil 13
Slide 14: European supply factors
European supply factors Imports compensating for reduced indigenous production and LNG Bcm European gas supply Bcm EU 28 gas demand 600 500 500 400 400 300 300 200 200 100 100 0 0 2011 2012 2013 2014 2015 2016 2017E 2011 2012 2013 2014 2015 2016E 2017E Indigenous production Norway Russia North Afric
Slide 15: US LNG exports and Asian LNG demand
US LNG exports and Asian LNG demand US Gas export outlook Asian LNG demand Bcm Bcm Asian LNG demand forecasts 450 80 60 Under update 400 350 40 300 250 20 200 0 150 2012 2013 2014 2015 2016 F2017 F2020 2009 2011 2013 2015 2017 2019 2021 2023 2025 High-Low History Average LNG Mexico • Imports shifted
Slide 16: Globalizing gas – flows according to price signals
Globalizing gas – flows according to price signals US LNG currently in the money Short-run marginal cost ranges for US Winter 2017/18 LNG supply to Asia and Europe, and prices Asia North America Europe USD/MMBtu USD/MMBtu USD/MMBtu 8.03) 6.82) 4.9 - 5.6 4.2 - 4.6 1.3 – 2.0 0.8 - 1.2 4.4 - 4.8 0.5 3.
Slide 17: Concluding remarks
Concluding remarks Gas markets are globalizing $/MMBtu • European winter could be 20 HH-Europe band Coal Switching Range EU tighter than expected 18 Japan - Korea Spot LNG 16 Asia LNG Contract NBP spot (UK) 14 Henry Hub (US) • Firm global LNG demand 12 short term 10 8 6 • Chinese environmental polic
Slide 18: Thank you
Thank you LV 18 HF statoil
Slide 19: Continuous improvement
Continuous improvement Jannicke Nilsson, EVP and COO 5 October 2017, Sandsli
Slide 20: COO | enabling safe and efficient operations
COO | enabling safe and efficient operations Step-change in Continuous Simplification, Future fit governance Digital safety & security improvement standardisation & & organisation transformation performance industrialisation Ensuring always safe, high value & low carbon 20
Slide 21: From programme to culture
From programme to culture Unlocking further efficiency potential Continuous improvement [USD billion] Drilling cost per offshore well1 35% cost 1.0 US onshore cost 64% cost per boe 3.2 Unit production 18% cost 2.5 cost Sales, general & 1.3 administration 40% cost Production efficiency2 >6.5 p.p. Ori
Slide 22: The ambition is to become a digital leader within our core areas
The ambition is to become a digital leader within our core areas Safety, security and sustainability Productivity Always safe | High value | Low carbon Cost Efficiency Capabilities and culture 22
Slide 23: Statoil's digital roadmap
Statoil’s digital roadmap 1. Digital safety, 6. Process digitalisation security & sustainability & insight 2. Subsurface 5. Data driven analytics Statoil data operations platform 3. Next generation 4. Field of the well delivery future 23
Slide 24: Ambitious plans-strong delivery
Ambitious plans-strong delivery Margareth Øvrum, EVP Technology, Projects & Drilling (TPD) 5 October 2017, Sandsli
Slide 25: Lifting weights all summer!
Lifting weights all summer! Aasta Hansteen Njord Cat J Oseberg Vestflanken Hywind Johan Sverdrup Mariner 25
Slide 26: World class project portfolio and exploration plan
World class project portfolio and exploration plan Statoil projects Project Long term opportunities sanctioned in 2016/17 opportunities Oseberg Peregrino II Johan Sverdrup Johan Castberg Barents Subsea Bay du Nord Brazil Tanzania Wind Vestflanken II Future tie-backs 2017 Exploration Drilling Plan By
Slide 27: The Troll Projects
The Troll Projects TROLL PHASE 3 • Subsea development with 8 gas wells. Tie-back to Troll A • Sanction June 2018 • Planned start up: 2Q 2021 TROLL B GAS MODULE • IOR development by adding new gas handling capacity at Troll B • Sanctioned August 2016 • Planned start up: 4Q 2018 TROLL C GAS MODULE • I
Slide 28: Johan Sverdrup
Johan Sverdrup Phase 1 - Capex Project status 140 improvements1 Project Carbon Recovery 120 Completion Intensity Ambition (Phase 1) (CO2 kg / bbl) 100 80 ~60% ~0,5 70% NOK billion 123 60 Production Production Resources 109 Capacity Horizon (bbl) 40 97 (bopd) (yrs) 92 20 660 000 50+ 2-3bn 0 At PDO CM
Slide 29: Johan Sverdrup – the digital flagship
Joh an S v e rd ru p – th e d ig ita l f la g s h ip Digital Field Development Data-driven Operations and Digital Subsurface Automated Drilling Maintenance Data Platform, Data Quality, Data Science, Competence and Software 29
Slide 30: Driven by innovation and technology
Driven by innovation and technology Future projects Statoil Remotely Operated Factory1 Development roadmap Early phase projects Oseberg Vestflanken 2 Ongoing Åsgard In operation Stand alone Unmanned Production Unmanned Production Platform Platform (UPPTM ) (UPPTM) supported by host Unmanned Wellhead
Slide 31: Thank you
Thank you LV 31 HF statoil
Slide 32: www.statoil.com
www.statoil.com © Statoil ASA This presentation, including the contents and arrangement of the contents of each individual page or the collection of the pages, are owned by Statoil. Copyright to all material including, but not limited to, written material, photographs, drawings, images, tables and d
Slide 33: Forward-looking statements
Forward-looking statements This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, adverse changes in tax regimes; the development and use of new technology; geological or technical we use words such as "ambition", "continue", "could", "estimate",
Slide 34: Investor Relations in Statoil
Investor Relations in Statoil E-mail: irpost@statoil.com Investor Relations Europe Peter Hutton Senior Vice President phutt@statoil.com +44 7881 918792 Lars Valdresbråten IR Officer lava@statoil.com +47 40 28 17 89 Erik Gonder IR Officer ergon@statoil.com +47 99 56 26 11 Anca Jalba IR Officer ancj@s