BP plc · LSE:BP.
BP — Investor Presentation (May 2002)
25 slides from BP's investor presentation, May 30, 2002
Slide 1: BP in Angola
BP in Angola Greg Coleman Vice-President, Investor Relations Paris, 30 May 2002
Slide 2: Forward-looking statements disclaimer
This presentation and the associated slides and discussion contain statements, particularly those regarding capital employed, capital expenditure, cashflows, costs, savings, debt, demand, disposals, dividends, earnings, efficiency, gearing, growth, investment, margins, performance, prices, productio
Slide 3: Outline
outline • Upstream growth strategy • Angola context • BP in Angola • Technology implementation • Conclusion
Slide 4: Strategic delivery since 1999
strategic delivery since 1999 costs down 20% returns ~ _ 15% disposals $10 bn + Alaska+ Arco + Veba accretive sustainable $7.7 to 8.5 bn at profitability mid-cycle in 2001
Slide 5: Delivering group strategy
delivering group strategy organic investment high grade portfolio capital efficiency operating efficiency increase mid-cycle returns grow capital employed grow dividend …within a disciplined financial framework
Slide 6: Future outlook
future outlook Production (mboed) Production cost ($/boe) 5000 4 5.5% 4000 3 Base 3000 2 Total 2000 1 Growth 0 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '98 '99 '00 '01 '02 '03 '04 '05 Base New Projects Like for Like adjustment Source: BP Data Source: BP Data As of February 2001
Slide 7: New projects
No exploration required new projects No technology step-out All teams in place Northstar Shearwater Alligin Tambar Rhum Mad Dog Skarv Horn Mtn. Holstein Clair Princess Na Kika Devenick King’s Peak Atlantis ACG King Thunder Horse Shah Deniz Europa Trin. Marlin Atlas Methanol Karous/Temsah Diana
Slide 8: New project production
new project production mboed resources 1750 1500 18% 21% 1250 12% 1000 49% 750 500 250 0 1999 2000 2001 2002 2003 2004 2005 2006 producing under construction 02 sanctions pre-sanction engineering source: BP dataBP forecast 2002 - 06
Slide 9: The deepwater prize
the deepwater prize NW Europe Mediterranean Gulf of Mexico Asia Pacific W. Africa Gas Gas Oil Oil S.America Source: WoodMacKenzie Global Deepwater Markets June Global distribution of volumes discovered in deepwater (500m+) drilling to
Slide 10: New project production (as of Feb '01)
new project production (as of Feb ’01) Production (mboed) 1400 1200 1000 800 600 400 200 0 '99 '00 '01 '02 '03 '04 '05 RoW North Sea / Alaska Trinidad Deepwater Source: BP Data BP forecast 2002-2005
Slide 11: Oil cost of supply
oil cost of supply Cumulative production increase 2000-2010 mil bbl/d 14 Canada Heavy 12 Venezuela Heavy OPEC Mexico 10 Cost of Supply $/bbl* Other Kazakhstan FSU Venezuela Azerbaijan Nigeria UAE 8 Brazil Angola Libya 6 S.Arabia Iran New Saudi Kuwait Iraq 4 Arabia Shut-In 2 0 *includes F,D & L, 0 2
Slide 12: Angola: an exciting deepwater future
Angola: an exciting deepwater future Deepwater oil resources • Under development: 1.3 bn • Discovered: 7 – 8 bn Production potential • Yet to find: 7 – 12 bn? Total: 15 – 20 bn
Slide 13: NPV10 ($ per bbl)
NPV10 ($ per bbl) * $11 bbl $16 bbl 2.5 5 4.5 2 4 3.5 1.5 3 2.5 1 2 0.5 1.5 1 0 0.5 NOR BRA NIG ANG AZ GOM UK 0 -0.5 NOR BRA NIG ANG AZ GOM UK $30 bbl 14 Contractor group 12 10 take 8 Government take 6 4 Full Cycle, Model: Woodmac GEM 2 As of 2001 0 NOR BRA NIG ANG AZ GOM UK * Net Present Value disc
Slide 14: BP in Angola: deepwater blocks
BP in Angola: deepwater blocks Block 15 Block 31 2000m • 26.67% interest 26.67% interest • Exxon/Mobil operator 1000m and operator • Area 4,200 km2 Area 5,349 km2 14 • 12 discoveries Water depth 15 • Kizomba development in 1500-2800m 15 1 PSA signed May 1999 31 2 execution 16 First well in
Slide 15: Block 18 overview
Block 18 overview • Water depths between Platina Galio ca 1,200 & 1,500 metres Plutonio • 6 discoveries • Distances determine the development economics 1250 100 15 750 175 00 • Significant range of 0 0 m m m m m concepts evaluated across ‘single’ and ‘multiple’ fields • ‘Greater Plutonio’ is first d
Slide 16: Block 18 – Greater Plutonio
Block 18 – Greater Plutonio • Selected development Platina Galio concept comprises: Plutonio single, large FPSO subsea wells across ‘multiple’ fields extensive seabed flowline system 125 100 150 75 175 0 0 0m 0 0m m m m • Front End Engineering (FEED) in 1Q02 • Development offers infrastructure
Slide 17: GoM learnings applied to Angola
GoM learnings applied to Angola Drilling completion design for depths exceeding 1,500 metres; sand control in poorly consolidated reservoirs State-of-the-art processing of 3-D data 'Intelligent well systems' which transmit data and enable us to make better reservoir management decisions Rise
Slide 18: Greater Plutonio implementation
Greater Plutonio implementation • Long distance tiebacks (lay costs, insulation systems) • Flow assurance (slug management, hydrates, operability) • Well and subsea reliability (well sand control, subsea equipment) • Riser systems (maturity, operability, cost) • Environmental focus; targets for CO2
Slide 19: Technology: seismic interpretation
technology: seismic interpretation Angola - Spectral decomposition Conventional Spectral decomposition image image
Slide 20: Balancing costs and margins
balancing costs and margins $11 bbl $16 bbl 12 18 16 10 14 8 12 10 6 8 4 6 4 2 2 0 0 NOR BRA NIG ANG AZ GOM UK NOR BRA NIG ANG AZ GOM UK $30 bbl 35 30 Contractor take 25 20 Government take 15 10 Opex 5 Capex 0 NOR BRA NIG ANG AZ GOM UK Full Cycle, Model: Woodmac GEM As of 2001
Slide 21: Conclusions
conclusions • Angola fits within BP’s upstream growth strategy • Deepwater Angola - A world class producer, sustainable and long-term future for BP - Portfolio uniquely positioned; interest in all the key offshore blocks • Implementation with best practice • Application of technology from GoM Deepwa
Slide 22: Qs and As
Qs and As
Slide 23: Slide 23
Slide 24: BACK UP
BACK UP
Slide 25: Building an Angolan organisation
building an Angolan organisation • Build Angolan business, run by Angolans • Initiatives to recruit, train and develop local staff • Economic participation • Foster capacity building, civil society and industrial development • Sustainable social projects led by Angolans