Equinor ASA · OSL:EQNR
Equinor ASA — Offshore Strategy Conference 2009
10 slides from Equinor ASA's conference presentation, Feb 10, 2009
Slide 1: Activity level going forward?
Classification: Internal Status: DraftClassification: Internal Status: DraftClassification: Internal Activity level going forward? Gunnar Myrebøe, Projects Offshore strategikonferanse 10 February 2009
Slide 2: Agenda
Agenda • Activity level in light of new business context • Procurement 2008 • Capital expenditure forecast 2009 • Large portfolio flexibility
Slide 3: A new business context
A new business context Oil price collapse1 Global market developments2 160 RIG NCS High End Steel Engineering Subsea 140 450 % 120 400 % 100 350 % USD Market Index 80 UPDATE 300 % 60 250 % 40 200 % 20 150 % 0 100 % ja ja ja ja ja ja ja ja ja ja n. n. n. n. n. n. n. n. n. n. 2000 2001 2002 2003 2004
Slide 4: Growth outlook towards 2012 maintained
Growth outlook towards 2012 maintained Capital Markets Day 2008 Guiding 2012 mmboepd mmboepd • Net sales & acquisitions 2.2 2.2 – Marcellus (US shale gas) 1.9 – Peregrino (Brazil) – GoM shelf and UK divestment • Change in contractual terms • Impact from prioritisation/decline – High-grading of explo
Slide 5: Business development to fight decline
Business development to fight decline Legacy fields replaced by increasing industrial dynamics Stylised NCS production profile Stylised growth profile Equity oil and gas production Gross additions to equity production Non-sanctioned projects/business development Sanctioned field projects Producing f
Slide 6: StatoilHydro Group - Procurement
StatoilHydro Group - Procurement Yearly Spend (BNOK) 140 123,3 120 105,5 19,2 100 90,1 14,8 13,9 80 60 104,1 90,7 40 76,2 20 0 2006 2007 2008 Norway International* * Procured by StatoilHydro, not including Partner operated procurement on NCS and internationally
Slide 7: Capital expenditure forecast 2009
Capital expenditure forecast 2009 • Strict prioritisation and high-grading Capital expenditure (USDbn) – Non-sanctioned projects – Operational investments Other ~16.0 – Downstream investments E&P NCS • Eight new projects in production in 2009 ~12.5 ~13.5 E&P INT – Avg. break-even price USD~35/boe Ot
Slide 8: Using capex flexibility
Using capex flexibility 100 % Manage portfolio to: 80 % • Ensure financial robustness 60 % • Benefit from expected softening cost environment 40 % • Improve project quality 20 % 0% 2009 2010 2011 2012 Non-sanctioned projects Sanctioned projects, including operational investments
Slide 9: Robust portfolio with optionality
Robust portfolio with optionality 80 70 60 Break-even price* (USD/boe) Low time-criticality 50 (High flexibility) Average break-even price 40 In current cost environment 30 20 10 High time-criticality 0 StatoilHydro operated Non-sanctioned projects Partner operated *Estimated project NPV equals zero
Slide 10: Summary
Summary StatoilHydro’s long term strategy remains firm Our industry to regain quality Adaptive industry – ready for new challenges