Origin Energy Limited · ASX:ORG
Origin Energy — Investor Presentation (July 2011)
18 slides from Origin Energy's investor presentation, Jul 28, 2011
Slide 1: Australia Pacific LNG: Final Investment Decision
Australia Pacific LNG: Final Investment Decision First Phase CSG to LNG Project 28 July 2011
Slide 2: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 3: APLNG has approved a Final Investment Decision on the first phase
APLNG has approved a Final Investment Decision on the first phase of its CSG to LNG project … Monetises large domestic gas reserves through international oil-linked energy prices Leverages strong growth in Asian energy markets Initiates development of first LNG train and infrastructure to supp
Slide 4: Joint venture to commence development of a 9 mtpa, US$20 billion CSG to LNG project
The joint venture has agreed to commence the development of a 9 mtpa, US$20 billion CSG to LNG project … PROJECT OVERVIEW Description: • CSG to LNG project based on Australia’s largest 2P CSG reserves base Size: • Two trains, each with a nominal production capacity of 4.5 mtpa • Initial commitment t
Slide 5: The joint venture has successfully reached this milestone
The joint venture has successfully reached this milestone following a methodical and considered approach Timing Completed Milestones (Cal Yr) Compelling Project Benefits • Leverages strong growth in Asian energy Origin and ConocoPhillips form APLNG JV Q4 2008 markets Initial Advice Statement sub
Slide 6: APLNG is well placed to successfully execute all components of the project
APLNG is well placed to successfully execute all components of the project Strong and aligned joint venture Australia’s largest 2P CSG reserves base Australia’s largest, and world’s largest CSG operators ConocoPhillips owner of Optimised Cascade® Process ConocoPhillips-Bechtel experience i
Slide 7: APLNG is underpinned by a strong, aligned joint venture
APLNG is underpinned by a strong, aligned joint venture that combines Origin’s leading position in Australian CSG development and ConocoPhillips’ extensive LNG and CSG capabilities … • Australia’s largest integrated • Integrated energy company • Integrated energy and chemical company energy company
Slide 8: APLNG has sufficient gas to underpin two trains
APLNG has sufficient gas to underpin two trains, with 3P reserves of 14,742 PJ and an additional 10,050 PJ of contingent resources … APLNG Reserves and Resources Upstream Gas Production Costs Upstream Production Costs Train 1 Train 2 3C = 10,050 Lower unit 2C = 4,041 Ramp and Tail cost gas Gas1 prod
Slide 9: With Australia's longest history of CSG exploration and production
With Australia’s longest history of CSG exploration and production … • Leverages Origin’s 14 years’ CSG production experience • High value and high productivity fields prioritised for ramp-up period • Key upstream contracts include: - Supply and operation of drilling rigs - Upstream facilities - Com
Slide 10: Downstream facility will utilise ConocoPhillips' Optimised Cascade Process
The downstream facility will utilise ConocoPhillips’ proprietary Optimised Cascade® Process LNG technology … • Bechtel, as part of their Global LNG Collaboration with ConocoPhillips, will be EPC contractor for the downstream program • The project will utilise ConocoPhillips’ Optimised Cascade® Proce
Slide 11: APLNG continues its commitment to local communities and the environment
APLNG continues its commitment to local communities and the environment to operate sustainably … Supporting the Community • Social Impact Management Plan to identify community needs and direct investment • Boosting local skills via apprenticeships, scholarships and training • Regional Community Cons
Slide 12: Asian LNG markets are robust, with opportunities for long term contracting
Asian LNG markets are robust, with opportunities for long term contracting Asian LNG Supply and Demand LNG Contracts by project and buyer Mtpa mmtpa Tokyo Gas Pluto 1 160 Kansai Electric Gorgon Osaka Gas PNG LNG TEPCO 140 QCLNG Chubu Electric Uncontracted LNG Supply1 120 GLNG Kyushu Electric Uncontr
Slide 13: Estimated capital costs for a 2-train project are US$20 billion
Estimated capital costs for a 2-train project are US$20 billion from FID until start-up of the second train … • Full 2-Train development: • US$20 billion, including US$2.5 billion of contingencies • First phase development (one train and infrastructure to support a second train): • US$14 billion, in
Slide 14: Appropriate controls and risk mitigation plans are in place
Appropriate controls and risk mitigation plans are in place … Strong Management and •• Industry leaders engaged for all key contracts and services of the project Broad resourcing channels to obtain quality people with specialised skills Quality Teams • Integration and interfacing team established to
Slide 15: Origin will contribute to its share of project costs using existing and new funding
Origin will contribute to its share of project costs using a range of existing and new funding facilities … • Initial funding requirement will be reduced by Sinopec’s gross contribution of $US1.8 billion for its 15% interest in APLNG (net US$1.5 billion benefit to ConocoPhillips and Origin) • Origin
Slide 16: Origin had cash and committed undrawn facilities of $3.6 billion
Origin had cash and committed undrawn facilities of $3.6 billion1 as at 30 June 2011 … Origin Debt and Bank Guarantee Maturity Profile as at 30 June 2011 • $2.3 billion was raised 2,500 through equity markets via a 1 for 5 pro rata renounceable 2,000 institutional and retail entitlement offer during
Slide 17: A final investment decision will deliver significant value to Origin shareholders
A final investment decision on the APLNG project will deliver significant value to Origin shareholders, underpinned by robust economics … Commercialisation of Australia’s largest 2P CSG reserves through international oil-linked energy prices Leverages strong growth in Asian energy markets Stro
Slide 18: Thank you
Thank you Further Information Angus Guthrie Group Manager, Investor Relations Email: angus.guthrie@originenergy.com.au Office: +61 2 8345 5558 Mobile: + 61 417 864 255 Website www.originenergy.com.au 18 |