Slide 1: ASX facsimile cover: APLNG FID2 Investor Presentation
To Company Announceme A nts Office Facsimile 1 1300 135 638 8 For personal use only Company ASX Limited Date 4 July 2012 From Helen Hard dy Pages 2 27 Subject Australia Pacific P LNG – FID2 Investo or Presentatiion Please find d attached a presentatio on to be mad de to investo ors and media today.
Slide 2: Australia Pacific LNG – FID2: Final Investment Decision on Train 2
For personal use only Australia Pacific LNG – FID2 Final Investment Decision on Train 2 Grant King, Managing Director 4 July 2012
Slide 3: 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 4: Important Notice (continued)
Important Notice (continued) All comparative data is in relation to either the year ended 30 June 2011 or the 6 months ended 31 December 2010 as indicated, unless otherwise stated. Certain comparative amounts may have been reclassified to conform with the current For personal use only year’s present
Slide 5: APLNG has approved a Final Investment Decision on the second train
Australia Pacific LNG has approved a Final Investment Decision on the second train of its CSG to LNG project … For personal use only • FID taken on the second train of the Australia Pacific LNG project (FID2) • Marketing complete for two-train project • Shareholdings following completion of Sinopec’
Slide 6: APLNG's value to Origin: breakeven oil price of US$35/bbl
APLNG’s value to Origin is demonstrated by a breakeven oil price of US$35/bbl to cover project costs and project finance debt service obligations … For personal use only OVERVIEW Project • CSG-to-LNG export project - two LNG trains approved, each with a 4.5 mtpa description: nameplate capacity Share
Slide 7: APLNG has made significant progress over the last four years
Australia Pacific LNG has made significant progress over the last four years … For personal use only Milestones Timing (CY) Origin and ConocoPhillips form APLNG incorporated JV Q4 2008 Initial Advice Statement submitted Q1 2009 Curtis Island site selected Q3 2009 Commenced FEED work Q4 2009
Slide 8: APLNG is a strong and aligned incorporated joint venture
Australia Pacific LNG is a strong and aligned incorporated joint venture, combining Origin’s Australian CSG experience with ConocoPhillips’ extensive LNG and CSG capabilities … For personal use only • Australia’s largest integrated • Integrated energy company with • Integrated energy and chemical co
Slide 9: FID2 is the final condition precedent for Sinopec's equity subscription
FID2 is the final condition precedent for Sinopec’s equity subscription in Australia Pacific LNG to increase to 25 per cent For personal use only • With the taking of FID2, Sinopec’s agreement to increase its shareholding in APLNG from 15% to 25% is now unconditional with completion due to occur sho
Slide 10: APLNG marketing is complete with contracts for 8.6 mtpa of LNG
Australia Pacific LNG marketing is complete with contracts in place for 8.6 mpta of LNG For personal use only Sinopec Kansai • 7.6 mpta LNG supply for 20 • 1.0 mtpa LNG supply for 20 years years • Largest LNG supply agreement • Commencing 2016 in Australian history by annual volume • Commencing 2015
Slide 11: Large, high quality reserves base with strong operators
The project is underpinned by a large, high quality reserves base with strong, experienced operators in CSG and LNG developments For personal use only Australia’s largest 2P reserves base Quality of the CSG resource • APLNG holds prime acreage in both of the • Large CSG reserves position Queensland’
Slide 12: APLNG has world leading operators
Australia Pacific LNG has world leading operators For personal use only UPSTREAM DOWNSTREAM • Operated by Origin • Operated by ConocoPhillips • Over 15 years’ CSG production experience in • Over 40 years’ LNG production experience Australia • Using ConocoPhillips’ Optimised Cascade® technology • Com
Slide 13: Upstream is on budget and schedule for Train start-up in mid-2015
Upstream is on budget and schedule for Train 1 start-up in mid-2015 For personal use only Milestones Date (CY) EPC pipeline contract awarded to MCJV July 2011 First Savanna hybrid coil drill rig operational July 2011 Pipeline manufacture 2011 and 2012 Second Savanna hybrid coil drill rig ope
Slide 14: Drilling rate will increase as 3rd and 4th rigs are mobilised
The drilling rate will increase as 3rd and 4th rigs are mobilised over the coming months For personal use only • Around 1,100 operated wells to be drilled by APLNG to support ramp requirements for two trains (Phase 1) • The key areas for drilling these Phase 1 operated wells are Talinga, Spring Gull
Slide 15: Gathering construction camp at Condabri now occupied
The gathering construction camp at Condabri is now occupied by contractors For personal use only Gathering • Leighton Contractors and East Coast Pipelines contracted to deliver gathering system • Gathering construction camp is now occupied by contractors, as scheduled Condabri Gathering Camp Gazebo
Slide 16: APLNG's gas and water facilities are simple and repeatable
APLNG’s gas and water facilities are simple and repeatable Gas processing facilities Water treatment plants 7 new gas processing facilities required for project 2 new water treatment facilities required For personal use only • • • Modularisation and improved design has significantly for project redu
Slide 17: Pipeline welding due to commence in the September 2012 quarter
Pipeline welding is due to commence in the September 2012 quarter … Pipelines Electrification For personal use only • EPC pipeline contract awarded to McConnell • Train 1 electrification contracts awarded to Dowell, Consolidated Contracting Co. joint Powerlink and on schedule venture (MCJV) in July
Slide 18: Downstream is on budget and schedule for Train start-up in mid-2015
Downstream is on budget and schedule for Train 1 start-up in mid-2015 For personal use only Milestones Date (CY) Commenced Curtis Island works mid-2011 Awarded EPC contract to Bechtel mid-2011 1st concrete LNG Tanks April 2012 1st concrete Train 1 compression June 2012 Roll-on roll-off fac
Slide 19: Downstream operations on mainland and Curtis Island progressing as planned
Downstream operations on the mainland and Curtis Island are progressing as planned For personal use only Mainland – temporary materials offloading Mainland – aggregate loading onto barge facility April 2012 Curtis Island Camp LNG tank foundations Curtis Island – Material Offloading Facility Curtis I
Slide 20: Bechtel responsible for all activity on Curtis Island
Bechtel is responsible for all activity on Curtis Island (engineering, procurement, construction) under a fixed price contract … Engineering and Procurement Construction For personal use only • Engineering and procurement remain on • Pouring of the Train 1 foundations commenced in schedule June 2012
Slide 21: APLNG making a significant economic contribution to Queensland
Australia Pacific LNG is making a significant economic contribution to Queensland and creating thousands of new jobs … For personal use only • Currently creating employment for around 4,000 Queenslanders and will create 6,000 construction jobs and a further 1,000 jobs for ongoing operations • More t
Slide 22: Risk mitigation plans and controls are in place
Risk mitigation plans and controls are in place … Risk Response For personal use only • Project operators are world class operators in their fields • Industry leaders engaged for all key contracts and services of the project Execution risk • Integration and interfacing team established to drive alig
Slide 23: Project capital costs remain in line with FID1 estimates
Project capital costs remain in line with FID1 estimates … • Estimated capital expenditure (project and non-project costs) from July 2011 until start of up For personal use only Train 2 in early 2016 includes: - A$23 billion(1) project costs – in line with US dollar estimates at FID1(2) - non-projec
Slide 24: APLNG has secured US$8.5 billion of project finance
Australia Pacific LNG has secured US$8.5 billion of project finance Project finance • In May 2012, Australia Pacific LNG successfully secured a US$8.5 billion Project Finance Facility For personal use only for the downstream parts of the project, including the LNG plant on Curtis Island • The Projec
Slide 25: Origin has sufficient liquidity to fund its share of APLNG
Origin has sufficient liquidity to fund its share of APLNG • Origin's remaining funding requirement(1) for its 37.5% share of APLNG for the period from 1 July For personal use only 2012 to first production of both LNG trains is approximately A$3.6 billion Origin Debt & Bank Guarantee Maturity Profil
Slide 26: APLNG is on track to deliver first LNG by 2015
Australia Pacific LNG is on track to deliver first LNG by 2015 … For personal use only Commercialisation of Australia’s largest 2P CSG reserves at international oil-linked prices Strong and aligned shareholder group each with strong funding capacity ConocoPhillips-Bechtel experience in develop
Slide 27: Thank you
For personal use only Thank you For more information Kylie Springall Group Manager, Investor Relations Email: kylie.springall@originenergy.com.au Office: +61 2 8345 5288 Mobile: + 61 400 477 393 www.originenergy.com.au 26 |