Newmed Energy Limited Partnership · TASE:NWMD
Newmed Energy Limited Partnership — Delek Drilling - Limited Partnership — Delek Group Investors Conference 2019
32 slides from Newmed Energy Limited Partnership's conference presentation, Mar 25, 2019
Slide 1: Energizing the Eastern Med
Energizing the Eastern Med Yossi Abu - CEO March 2019 Delek Drilling – Energizing The Eastern Med
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Delek Drilling - Limited Partnership (the “Partnership”), and may not be copied or distributed to any other person. The Data and information included in this presentation should not be interpreted as advice. Such data and information should not be copied
Slide 3: Contents
Contents ❑ Leviathan Development and Expansion Alternatives Update ❑ EMG Status Update ❑ Delek’s Regional Strategy ❑ Structural Change Considerations ❑ Delek Drilling Near Term Milestones Delek Drilling – Energizing The Eastern Med 3
Slide 4: Leviathan Development Status Update
Leviathan Development Status Update 4
Slide 5: Leviathan Development on Time on Budget
Leviathan Development on Time on Budget ❑ Phase 1a development progressing ~80% completed ❑ Jacket installation completed, Top Side mobilization mid-year ❑ Completed load out of all remaining subsea hardware and commenced transport to Israel ❑ Completed PLET installation for the infield and gatherin
Slide 6: Project Development Visuals
Project Development Visuals Source : Leviathan operator (NBL) Delek Drilling – Energizing The Eastern Med 6
Slide 7: Leviathan – Subsea Installation
Leviathan – Subsea Installation Source : Leviathan operator (NBL), as of February 2019 Delek Drilling – Energizing The Eastern Med 7
Slide 8: Leviathan – Modular Development
Leviathan – Modular Development Phase 1 of Leviathan development enable future cost efficient expansion Capacity of 1.2 bcf/d (approx. 12 bcm/y) Capacity of 2.1 bcf/d (approx. 21 bcm/y) DSM – Domestic Module REM – Regional Module Source: Leviathan operator (NBL) Delek Drilling – Energizing The Easte
Slide 9: Leviathan – Modular Development
Leviathan – Modular Development Leviathan partners approved $25mm for FEED In order to examine various expansion alternatives Capacity of 1.2 bcf/d (approx. 12 bcm/y) Capacity of 1.6 bcf/d (approx. 16 bcm/y) Capacity of 2.4 bcf/d (approx. 24 bcm/y) DSM – Domestic Modul DSMX – Domestic Modul REM – Re
Slide 10: Delek Regional Strategy
Delek Regional Strategy Israel – Domestic market Jordan - NEPCO Palestinian Authority Egypt – Domestic market Egypt – LNG Export Facilities Turkey Existing infrastructure Potential infrastructure Under construction Delek Drilling - Energizing The Eastern Med 10
Slide 11: Israel Long Term Demand Growth
Israel Long Term Demand Growth Tamar Sales 2018* 10.5 ❑ The sales of Tamar and Yam Thetys in 2018 amounted to 10.5 bcm, an increase LNG imports 2018 0.5 of 6.4% compared to 2017 (Average daily production amounted 1,029,069 2018 Consumption 11 mmbtu/day) 2018 Unfulfilled Demand 1.5 ❑ The main factor
Slide 12: Jordan NEPCO – Ideal Export Offtaker
Jordan NEPCO – Ideal Export Offtaker Imports from Leviathan will boost penetration of gas within Jordan's power and industrial sectors Source: Historical Data: IEA; Forecast: Wood Mackenzie Energy Markets Service, Country Update-Jordan, September 2018 Delek Drilling – Energizing The Eastern Med 12
Slide 13: Egypt – Long Term Supply Demand Imbalance
Egypt – Long Term Supply Demand Imbalance +20 BCM of LNG facilities* *The demand shown does not include the Egyptian LNG facilities at Damietta and Idku Source: Wood Mackenzie Various International Research Institutes Reconfirm Egypt Long-Term Gas Deficit Source: Wood Mackenzie Egypt Gas Market Stud
Slide 14: Egypt NG Demand – High Seasonality
Egypt NG Demand – High Seasonality Seasonality – high summer demand, yet domestic production could not satisfy demand ❑ Egypt –hot summer, mild winter and shoulder seasons. Seasonality play an increasing role as gas consumption recovers and more oil products are displaced in power ❑ Egypt Gas Demand
Slide 15: Transaction Overview – Pre Closing
Transaction Overview – Pre Closing Arbitrating parties Delek Drilling – Energizing The Eastern Med 15
Slide 16: Transaction Overview – Post Closing
Transaction Overview – Post Closing CLOA -“Capacity Lease Operatorship Agreement” to Ensure operational control of the pipeline and continuous flow of gas Delek Drilling – Energizing The Eastern Med 16
Slide 17: EMG – Status Update
EMG – Status Update ❑ East Gas / Noble Delek team integrated and working as single unit. Good momentum ❑ Significant engineering progress at Ashkelon and Sheikh Zuweid ❑ ROV inspection complete – no significant findings ❑ Given pipeline history, high confidence level of integrity ❑ DNV actively enga
Slide 18: EMG – Status Update
EMG – Status Update Reverse Flow Schedule - Path to EMG Closing 2018 2019 Activity September October November December January February March April May June ROV Ashkelon Reverse Flow Design Ashkelon Modifications Pipeline Grid Repair SZ Reverse Flow Design SZ LLI Procurement SZ Modifications ILI (Pi
Slide 19: Gas Flow to Egypt - Current Infrastructure
Gas Flow to Egypt - Current Infrastructure Leviathan Tamar 6.0 - 7.0 bcm/y Ashdod Ashqelon 4.0 - 4.5 bcm/y 2.0 - 2.5 bcm/y Delek Drilling – Energizing The Eastern Med 19
Slide 20: Gas Flow to Egypt - Debottlenecking INGL
Gas Flow to Egypt - Debottlenecking INGL Leviathan Tamar ~ 8.0 bcm/y Ashdod Ashqelon INGL Looping Delek Drilling – Energizing The Eastern Med 20
Slide 21: Gas Flow to Egypt – Debottlenecking Hot-Tap
Gas Flow to Egypt – Debottlenecking Hot-Tap Leviathan Tamar ~ 10.0 bcm/y Ashdod Ashqelon Delek Drilling – Energizing The Eastern Med 21
Slide 22: New Licenses Potential
New Licenses Potential Delek Drilling – Energizing The Eastern Med 22
Slide 23: Potential Spin Off of Business
Potential Spin Off of Business Examining a plan for the spin-off of the Partnership’s non-Tamar assets and liabilities. The main purposes of which is to reside in a more suitable venue and to unlock value ❑ In terms of the strategic objectives of the partnership, which are related to the corporate s
Slide 24: Current Structure
Current Structure Delek Group Ltd Public 60% 40% Delek Drilling LP All Other licenses Aphrodite Leviathan Tamar(+TP**) & Assets * * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include, inter alia: Yam Tethys, Alon license, EMED, Karish-Tannin royalties
Slide 25: Spin Off Process
Spin Off Process Delek Group Ltd Public 60% 40% Delek Drilling LP Distribution in kind to Delek Drilling Unit holders 100% London NewCo. Tamar (+ TP) All Other licenses & Aphrodite Leviathan Assets* * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include
Slide 26: Final Structure
Final Structure Delek Group Ltd Public Delek Group Ltd Public 60% 40% 60% 40% London NewCo. Delek Drilling LP All Other licenses & Leviathan Aphrodite Tamar (+TP) Assets* * Represents all other licenses and assets not related to Tamar, Leviathan and Aphrodite, and include, inter alia: Yam Tethys, Al
Slide 27: Delek NewCo. – London Comparable
Delek NewCo. – London Comparable 2P & 2C reserves (mmboe) 2P reserves 845 2C resources 876 1,083 80 673 0 58 500 481 347 277 215 194 37 56 47 Delek Drilling Kosmos Seplat Energean Tullow Oil Premier Oil Cairn Energy Soco Revenue ($,m) 888.6 746.1 90.3 1,946.0 1,397.5 418.1 175.1 Mkt. Cap ($, bn) 2.3
Slide 28: Delek NewCo. – London Comparable
Delek NewCo. – London Comparable 2020E 2P + 2C Production (kboe/d) 102 89 81 70 56 21 17 9 Delek NewCo Kosmos Seplat Energean Tullow Oil Premier Oil Cairn Energy Soco Source: Company information, equity research and FactSet as of March 2019. Delek NewCo Include Leviathan 2p+2C production of BCM 11.4
Slide 29: Delek NewCo. – London Comparable
Delek NewCo. – London Comparable R/P (based on 2P+2C production)1 39.4 26.4 21.1 17.7 NA 8.8 6.6 N.M Delek NewCo Kosmos Seplat Energean Tullow Premier Oil Cairn Energy Soco Source: Company information, equity research and FactSet as of March 2019 1 Reflects LTM 2P production over 2P reserves. For De
Slide 30: Advantages to Unit Holders in London Listing
Advantages to Unit Holders in London Listing 1. Potentially unlocking value for the participation unit holders by providing a more suitable platform for listing a large cap oil & gas business 2. Increased liquidity for participation unit holders, through a higher volume trading platform 3. Enhanced
Slide 31: Near Term Milestones
Near Term Milestones Leviathan Leviathan First Gas : Leviathan Activity & Tamar – Platform Israel + Jordan + Refinancing Dolphinus Installation Operation : Flow Test & Egypt (Potential Bond issuance) Sales Leviathan Leviathan Expansion Aphrodite EMG Deep DSMX + REM Marketing + FID Transaction Closin
Slide 32: Thank you
Thank you Delek Drilling – Energizing The Eastern Med 32
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