Centrica Plc · LSE:CNA
Centrica — Investor Day (March 2010)
13 slides from Centrica's investor day presentation, Mar 12, 2010
Slide 1: Centrica Energy Upstream is well positioned to deliver strong returns
Centrica Energy Upstream is well positioned to deliver strong returns Norway Scale Norway • 7th largest producer in the UKCS • 3rd largest owner of net acreage in UKCS Aberdeen • 5 locations and over 50 producing assets Stavanger NNS/ • Strategic positions in Norway, The Netherlands and Trinidad CNS
Slide 2: Centrica Energy Upstream is a full service operator with required capabilities
Centrica Energy Upstream is a full service operator with the required capabilities to continue to build on our strategy Business Project Development Subsurface Management Operations • Good relationships with • Experienced teams • Industry leading drilling • Strong HSE record the key players • Extens
Slide 3: Capability Case Study: Greater Kittiwake Area (GKA) rejuvenation
Capability Case Study: Greater Kittiwake Area (GKA) rejuvenation • Acquired a 50% operated interest in the GKA in 2003 – at that time production was c. 5 mboepd (gross) with abandonment in 2005 • The GKA area has been regionally mapped using 3D seismic data in order to better define and identify orp
Slide 4: Capability Case Study: Cygnus Field appraisal
Capability Case Study: Cygnus Field appraisal • Discovered in 1988 • Acquired a 35% non operated interest in the Cygnus field from Tullow and a further 12.5 % interest from EON in 2008 • Drilled two successful appraisal wells in 2009, confirming the eastern field potential and unlocking this 20 year
Slide 5: Capability Case Study: Chiswick field development
Capability Case Study: Chiswick field development • Discovered in 1984 • Acquired in August 2006 • Chiswick drilling relied on understanding of complex carboniferous reservoir geometries and required a new technical solution for fraccing the wells • New industry project execution capability was also
Slide 6: Our execution of the CE Upstream strategy has had a transformational impact
Our execution of the CE Upstream strategy has had a transformational impact on the business Key Elements of the Upstream Strategy Progress UK, Netherlands Offshore • Transformed CE Upstream business from ‘blow down’ Be the leading consolidator and operator of to sustainable production mature and orp
Slide 7: Capability Case Study: Chestnut field development
Capability Case Study: Chestnut field development • Discovered in 1986 • Acquired in 2003 • Orphaned small oil field without access to nearby infrastructure • Chestnut drilling relied on complex 3D seismic inversion in order to identify oil-bearing sands • Brought on stream in 2008 with first use of
Slide 8: Capability Case Study: Trinidad and Tobago – international growth
Capability Case Study: Trinidad and Tobago – international growth • Deal announced in February 2010 to acquire Suncor Energy’s Trinidad and Tobago gas asset base Suncor 90% Block 22 • Provides Centrica with its first producing LNG position Petrotrin 10% and equity interests in 3 significant developm
Slide 9: Centrica has a diverse generation portfolio with significant growth potential
Centrica has a diverse generation portfolio with significant growth potential 2010e Generation (TWh) Generation Portfolio 50 40 CCGT Turnup Existing CCGT 4.9 GW Wind 30 Nuclear Future CCGT ~2.0 GW 20 Existing Wind 0.4 GW CCGT 10 economic Future Wind ~5.4 GW dispatch 0 Existing Nuclear 1.8 GW Lowest c
Slide 10: Our distinctive capabilities are key to delivering value from our growing business
Our distinctive capabilities are key to delivering value from our growing business Gas Wind Nuclear Langage Lynn & Inner Dowsing Sizewell • Optionality to capture value from: • In-house turnkey capability • Prime UK sites at Hinkley Point – Turn up/down due to spark – Long-term access to installatio
Slide 11: Nuclear
British Energy Fleet Performance Heysham 1 Output (TWh) 2004-06: 3km of cast iron CW Nuclear New Build Development Key future decision is new build final investment decision 9.0 pipework repaired 8.0 New build development 7.0 2009 2010 2011 2012 6.0 Output (TWh) 5.0 Government 4.0 activity EDF sites
Slide 12: Renewables: Lynn & Inner Dowsing: a case study
Lynn & Inner Dowsing: a case study • Delivered project on time and on budget Renewables Lincs Offshore Wind Farm • Retained experienced project management team to progress Lincs • Project completed with an excellent safety record • Similar location and ground conditions to Lynn and • Successful exec
Slide 13: Centrica Storage
Storage Performance Storage Projects 300 Rough six year operating profit history 60 Centrica Storage Shaping the future through flexible and reliable gas storage Caythorpe Baird Bains Rough Average SBU price for calendar year (p) Average SBU price 250 50 Onshore depleted Offshore existing Offshore e