Origin Energy Limited · ASX:ORG
Origin Energy — Corporate Update (November 2012)
84 slides from Origin Energy's corporate update, Nov 8, 2012
Slide 1: ASX cover note: Presentations
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 8 November 2012 From Helen Hardy Pages 84 Subject PRESENTATIONS Attached for your information are presentations being made at Origin’s Operational Review and Asset Visit from 8-9 November 2012. A co
Slide 2: Origin Operational Review and Asset Visit
For personal use only Origin Operational Review and Asset Visit Presented by Karen Moses Executive Director, Finance and Strategy 8-9 November 2012
Slide 3: Operational Review and Asset Visit
Operational Review and Asset Visit TALINGA For personal use only • Site Tour: - Gas Well, walking tour of Reverse Osmosis Plant and Ponds, bus tour of Talinga Gas Plant • Presentations: - Welcome and Tour Overview – Karen Moses - APLNG CSG Production – Paul Zealand, Bill McKenzie, Ross Evans CONDABR
Slide 4: The Origin Management Team & Site Tour Representatives
The Origin Management Team & Site Tour Representatives Managing Director For personal use only Grant King Executive Chief Executive Chief Chief Executive Director, Finance Officer, Energy Development Officer, Upstream and Strategy Markets Officer Paul Zealand Karen Moses Frank Calabria David Baldwin
Slide 5: APLNG is a strong and aligned incorporated joint venture
APLNG 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 • Energy company with global • Integrated energy and chemical company energy company
Slide 6: APLNG – CSG Production
For personal use only APLNG – CSG Production Presented by: Paul Zealand - Chief Executive Officer, Upstream Bill McKenzie - General Manager, QLD CSG Ross Evans – Group Manager Development & Appraisal, QLD CSG Origin Operational Review and Asset Visit 8-9 November 2012
Slide 7: Origin is responsible for the upstream program for Australia Pacific LNG
Origin is responsible for the upstream program for Australia Pacific LNG, leveraging over 15 years of CSG production experience... For personal use only APLNG tenure in the Surat and Bowen basins at 30 June 2012 … with APLNG having a dominant position in Queensland's premium CSG 2| acreage
Slide 8: APLNG's reserves base continues to expand
APLNG‟s reserves base continues to expand, with 3P reserves of 16,047 PJ and an additional 9,829 PJ of contingent resources … For personal use only APLNG Reserves and Resources Upstream Gas Production Costs PJe APLNG's Reserves & Resources Upstream Production Costs 28,000 2 Phase 1 Phase 2 24,000 3C
Slide 9: Regional Geology
Regional Geology For personal use only APLNG permit Permian Fairways Permian permeability Sweetspot Permian CSG fields Conventional & CSG Denison Trough fields Walloon CSG fields Permeability & net coal Sweetspot Regional Seismic Section Walloon Fairway 4|
Slide 10: Regional Geology
Regional Geology Combabula Condabri Talinga Tipton Western Platform Balonne Nose Taroom Trough Undulla Nose Moonie High For personal use only Present Day Walloon Springbok Moolayember Hutton Base Jurassic Seismic travel time Base mid Triassic Bandanna/Tinowon/Baralaba Key features • Major structural
Slide 11: To the north…
To the north…. Fairview Scotia Spring Gully Peat Western Platform Balonne Nose Taroom Trough Undulla Nose Moonie High For personal use only Present Day Deeper erosion of section Surface Seismic travel time Base mid Triassic Bandanna/Tinowon/Baralaba Key features • Major structural elements • Major u
Slide 12: Regional Geology: Depositional history creates key differences
Regional Geology Depositional history creates key differences For personal use only Spring Gully Coal Continuity Walloon Coal Variability Spring Gully coal seams are Walloons coal seams are thinner and the continuous over many 10‟s or packages which contain the seams vary in possibly 100‟s of kilome
Slide 13: Sweet spots arise from greater coal thickness and higher permeability
“Sweet spots” arise from the combination of greater coal West thickness and higher permeability East Thickening of Walloons section For personal use only Increasing net coal thickness Undulla Nose Walloon net coal thickness High net coal Walloon Fairway Permeability thickness “Sweetspot” Walloon dep
Slide 14: APLNG has a dominant position in Queensland's premium CSG acreage
APLNG has a dominant position in Queensland‟s premium CSG acreage For personal use only • APLNG is the only company that has prime acreage in both of the Queensland CSG “sweet spots” • APLNG Phase 1 targets those sweet spots for initial development and ramp up to first LNG • APLNG has both diversity
Slide 15: The Sweetspots demonstrate world-class reservoir properties
The Sweetspots demonstrate world-class reservoir properties For personal use only What makes a good CSG producer 1. High net effective coal thickness 4. High permeability 2. Laterally extensive coals 5. Shallow depth (low cost to drill) 3. High gas content saturation 6. Low CO2 content Source: Journ
Slide 16: Production History
Production History APLNG Production History For personal use only APLNG share (PJ/yr equivalent) 120.0 Spring Gully Spring Gully Spring Gully Ph1 & 2 Talinga Ph1 Talinga Ph3 & 4 Ph5 & 6 100.0 Kenya Spring Gully 80.0 Fairview PJ / yr 60.0 Denison Trough Denison, Peat and Moura Peat Since 1990s 40.0 M
Slide 17: Well Production, Deliverability & Turn-down
Well Production, Deliverability & Turn-down Dewatering For personal use only Stable Production Stage Stage Decline Stage • Typical phase 1 well forecast to have: – peak gas rate 1-2 TJ/d Production Rate – peak water rate 500-1000 Gas bbl/d – approx 50-70% of well‟s reserves produced within first 5 y
Slide 18: Maximum well deliverability considerably higher than current production
Maximum well deliverability considerably higher than current production levels indicate... For personal use only • The 1,100 operated wells to be drilled for Phase 1 are expected to produce 1,200 TJ/d1, with an additional 200 TJ/d1 from non-operated assets • Current operated well production is over
Slide 19: Upstream Operations are like a factory
Upstream Operations are like a factory For personal use only Optimise PJ / yr Produce Plan Scale & continuous improvement applied to repeatable Land Operate processes reduces Access execution risk and drives costs lower Connect Drill Complete 14 |
Slide 20: Design Evolution – Compressors
Design Evolution – Compressors Spring Gully Talinga Condabri For personal use only • Spring Gully has a 4 stage • Talinga has a combination of • Condabri has centrifugal reciprocating compressors screw & reciprocating compression and will be and gas fired engines: compressors: electrified. - Recip.
Slide 21: Design Evolution – Wellheads
Design Evolution – Wellheads Spring Gully Talinga Condabri For personal use only Spring Gully • Condabri wellheads have: • Spring Gully’s wellheads have: • Talinga’s wellheads have: - Full automation - 1 operator per 15 wells - 1 operator per 35 wells - Controlled remotely so less - Slow install (6
Slide 22: A comprehensive regulatory regime underpins CSG to LNG projects
A comprehensive regulatory regime underpins CSG to LNG projects For personal use only EIS Environmental, social and economic impact assessment State Federal Coordinator General Report Gas Fields Pipeline LNG Facility Environmental and social impacts LNG Facility Approval Approval Approval Conditions
Slide 23: Regulatory Framework in Action
Regulatory Framework in Action Key Stakeholders For personal use only Lenders Shareholders Regulators Public NGOs APLNG HSE & SD Management Plan (HSEMP) Standards & HSE & SD Plan Guidelines Elements Strategic Planning Parent Company APLNG Environmental & Social Mgmt Plan (ESMP) Policies & Systems Ri
Slide 24: Assuring the Community
Assuring the Community Water Management For personal use only Change in land use and social impact Aquifer drawdown & contamination 19 |
Slide 25: CSG to LNG industry operates in a small proportion of the Great Artesian Basin
The CSG to LNG industry operates in a small proportion of the overall Great Artesian Basin (GAB) For personal use only Location of CSG projects The Surat Basin is a sub basin of the Great Artesian Basin 20 | Source: After Radke et al, 2000
Slide 26: Water produced by the industry compared with other users and GAB recharge
Water produced by the industry (on average over 40 years) will be about half the amount taken by other users (in perpetuity) and is small compared to the annual recharge of the GAB For personal use only GAB and Surat Basin water figures Estimated annual water levels (ML) Typical annual water product
Slide 27: Coal seams are separated from aquifers by hard rock
The coal seams are separated from the aquifers by layers of hard rock - and the aquifers are monitored comprehensively In our operating areas: For personal use only • We take water from the coal measures Water bore – typically 50-100 • Others take it mainly from the shallow aquifers metres deep • Th
Slide 28: Fraccing may be used to enhance flow of fluids
In some areas where permeability of the coals is low, the process of fraccing may be used to enhance the flow of fluids … For personal use only • Hydraulic Fracture stimulation or „fraccing‟ is a method to increase flow of gas and extract gas more efficiently from the coal seam • „Fracs‟ are placed
Slide 29: Over 97% of fraccing fluid is water and sand
Over 97% of the fraccing fluid used is water and sand with a further 2% salt and minor concentrations of other common household additives For personal use only 24 |
Slide 30: CSG to LNG industry will produce broadly the same amount of salt as other users
The CSG to LNG industry will produce broadly the same amount of salt produced by other users • All our produced water will be treated For personal use only with Reverse Osmosis (RO) • Currently more than 90% of the water treated by RO becomes clean and usable - expected to rise to 97.5% as the Indic
Slide 31: Substantial investment in infrastructure and community programs
We will invest substantially through a mix of infrastructure investment and long running community programs For personal use only Operational Social impact Community investment - $50m 2011-2015 management needs spending with direct i.e. as required community by conditions impact (make good Social im
Slide 32: The 'Working Together' Program has been welcomed by landowners
The „Working Together‟ Program has been welcomed by landowners participating in the pilot For personal use only 27 |
Slide 33: Thank you
For personal use only Thank you
Slide 34: Talinga - Gas Processing Plant and Water Treatment Facility
For personal use only Talinga - Gas Processing Plant and Water Treatment Facility Presented by Bill McKenzie, General Manager, QLD CSG Origin Operational Review and Asset Visit 8-9 November 2012
Slide 35: Talinga Gas Well
Talinga Gas Well For personal use only • CSG is produced by extracting groundwater from the coal seams which reduces the pressure and releases the gas from the coal • Both the gas and associated water are extracted via the CSG well, and once on the surface, are separated and pumped to relevant treat
Slide 36: The Talinga water treatment facility process
The Talinga water treatment facility process For personal use only 3|
Slide 37: The Talinga Gas Processing Plant
The Talinga Gas Processing Plant For personal use only 4|
Slide 38: Talinga coal seam gas processing flow chart
Talinga coal seam gas processing flow chart For personal use only 5|
Slide 39: Thank you
For personal use only Thank you
Slide 40: APLNG Project – Overview
For personal use only APLNG Project – Overview Presented by Adrian Lang Project Director Origin Operational Review and Asset Visit 8-9 November 2012
Slide 41: APLNG project developed by Origin, ConocoPhillips and Sinopec
The APLNG project is being developed by Origin, ConocoPhillips and Sinopec For personal use only • Australia’s largest integrated • Energy company with global • Integrated energy and chemical company energy company operations • One of China’s largest petroleum products • Listed in S&P/ASX 20 index •
Slide 42: Australia Pacific LNG has world leading operators
Australia Pacific LNG has world leading operators For personal use only UPSTREAM – 20% complete DOWNSTREAM – 23% complete • Operated by Origin • Operated by ConocoPhillips • Over 15 years’ CSG production experience in • Over 40 years’ LNG production experience Australia • Using ConocoPhillips’ Optim
Slide 43: Origin is Australia's largest CSG producer
Origin is Australia’s largest CSG producer For personal use only • Leverages Origin’s 15 years’ CSG production experience • High value and high productivity fields prioritised for ramp-up period • Experience with local community, State and Federal Authorities • EIS approvals for new assets establish
Slide 44: APLNG execution risks appropriately allocated and mitigated
APLNG execution risks have been appropriately allocated and mitigated For personal use only Drilling & LNG plant, Gas & Water Electri- Gathering Pipelines Water tanks & Completions Facilities fication terminal Lump sum Eng’ng Eng’ng Eng’ng Unit rates Proc’mt APLNG managed Proc’mt Proc’mt Const’n Pow
Slide 45: Execution risk is managed through…
Execution risk is managed through … For personal use only • Industry leaders engaged for all key contracts and services of the project Strong Management • Broad resourcing channels to obtain quality people with specialised skills and Quality Teams • Integration and interfacing team established to dr
Slide 46: APLNG Project – Upstream Delivery
For personal use only APLNG Project – Upstream Delivery Presented by Adrian Lang Project Director Origin Operational Review and Asset Visit 8-9 November 2012
Slide 47: Upstream Project Goals
Upstream Project Goals 1 • Health and Safety For personal use only • Zero Harm 2 • Environment and Land • Honour our Commitments 3 • Safe & Operable Production System • Project on schedule and budget • Project within schedule and budget 4 • PMO has developed estimating, planning, measuring and forec
Slide 48: Upstream Progress – 20% complete
Upstream Progress – 20% complete For personal use only Measure of Progress: • Typically follows an ‘S’ curve • Measures physical progress in all six sub projects • Aggregates ramp phase of First pre-assembled unit delivery to Condabri Upstream CSG to LNG engineering, procurement, construction and co
Slide 49: Land access is progressing, and tracking to expectations
Land access is progressing, and tracking to expectations For personal use only Lease acquisition • Landholder compensation relationship Drilling & completion modified to reflect ‘partner’ status Gas & water gathering Gathering progress 30 June 2012 30 September 2012 Status Wells scouted 595 788 On t
Slide 50: Drilling
Drilling For personal use only • Drilling and completions managed as a manufacturing process • Small improvements make big impacts due to large well count • Cost reductions leveraged through technology and scale • Hybrid coiled tubing and automated drilling rigs • Minimal disturbance leases • Rapid
Slide 51: Drilling rates are a function of rigs and time per well
Drilling rates are a function of number of rigs in operation and the time to drill each well … For personal use only Development rigs and Max Wells per Max new wells days/well year2 by mid-2015 3 rigs at 5.2 days/well 210 630 4 rigs at 5.2 days/well 280 842 4 rigs at 4.6 days/well 320 952 4 rigs at
Slide 52: Gathering
Gathering • Installation of cable, gas and water High Density Polyethylene (HDPE) pipe to wells through trenching operations is underway For personal use only • Wellhead separators from the Offshore Module Yard are being delivered • Improved construction techniques applied: • Separator optimisation
Slide 53: Gas and Water Facilities
Gas and Water Facilities For personal use only 7 gas processing plants will be constructed • Improved design has significantly reduced • 15 compression trains, each 85 TJ/day footprint • Powered from electricity grid • >90% offsite fabricated/pre-assembled (based on tonnage) • Includes dehydration f
Slide 54: Pipelines Development
Pipelines Development For personal use only • Mainline Pipeline Contract - Large diameter 42” High Pressure Gas Network - EPC including design awarded to MCJV - Sequential construction plan • Infield Pipeline Works - Balance of gas network and water pipelines - Construct only schedule of unit rates
Slide 55: Pipelines Development
Pipelines Development Progress Update (September) Bulk of pipe in country For personal use only • • Pipeline construction commenced in July 2012; welding commenced in September 2012 • Narrows Crossing (QCLNG) on track to compete by mid-2014 The first of more than 530 km of pipe being laid, south of
Slide 56: Electrification kV Network
Electrification 132 kV Network Powerlink contract executed, project planning well underway. “Wandoan South to Eurombah Transmission Project” For personal use only 275 kV Powerlink Network on schedule and well advanced. “Columboola to Wandoan South” “Columboola to Western Downs” West Early power sche
Slide 57: Water Solutions
Water Solutions For personal use only • Treatment of 100% of produced water through Reverse Osmosis (RO) and brine concentration • Enhanced Recovery Technology to minimise brine volume • Clean water to local irrigation • Potential river discharge where environmental values not impaired • Aquifer inj
Slide 58: Condabri Development
Condabri Development Camps Water Camps Camps For personal use only Treatment Facility & Gas Plant Feed Pond Vegetation Switchyard Buffer Brine Ponds Q100 Flood Limit 13 |
Slide 59: Thank you
For personal use only Thank you
Slide 60: APLNG Project – Downstream Delivery
For personal use only APLNG Project – Downstream Delivery Presented by David Hayter Deputy Project Director, Downstream Project Origin Operational Review and Asset Visit 8-9 November 2012
Slide 61: Curtis Island designated as an LNG precinct
Curtis Island has been designated as an LNG precinct with the full support of the State and Federal governments For personal use only 2|
Slide 62: APLNG Downstream Facilities
APLNG Downstream Facilities Liquefaction of natural gas is an established technology, with project design based For personal use only on the Darwin LNG project which has operated since 2006 • Two Trains at 4.5 MTPA: – Optimized Cascade® Process technology – 6 GE LM2500 G4 DLE Drivers – Turbine Inlet
Slide 63: ConocoPhillips Optimized Cascade Process technology plants
ConocoPhillips Optimized Cascade® Process technology plants For personal use only Kenai Egyptian Cheniere Atlantic (Trinidad) Brass (Nigeria) Equatorial Guinea Darwin Angola (2011) APLNG QCLNG Wheatstone GLNG Operating Under Construction Under Development 4|
Slide 64: Advantages of Optimized Cascade Process technology for CSG
Advantages of Optimized Cascade® Process technology for CSG • Over four decades of liquefaction design and operating experience with low-BTU gas For personal use only • Only liquefaction technology proven for low-BTU, high-methane gas • Proven capacity to efficiently remove nitrogen – Raises specifi
Slide 65: Origin assurance processes around the LNG Downstream Project
Origin assurance processes around the LNG Downstream Project Execution For personal use only • Working with shareholders through the APLNG joint venture structure and its various sub-committees to provide direction and Strategise support to the project team • Continuous engagement between operator a
Slide 66: Resourcing
Resourcing • >1,800 people on site For personal use only • Total site peak approximately 3,500 personnel (two trains) starting mid 2013 • Curtis Island man-hours: – Direct 8.3 million – Indirect 6.2 million – Sub-contract 4.8 million • Module yard – Direct 8.4 million – Indirect 2.5 million • Indust
Slide 67: Project Highlights
Project Highlights For personal use only • Engineering progress is ahead of plan • Procurement is on plan • Construction access dredging is complete • Site embarkation points are operational • Site accommodation village is operational and expanding monthly • First module construction has started ahe
Slide 68: Milestones – Downstream Project 23% at September 2012
Milestones – Downstream Project 23% at September 2012 For personal use only Downstream Milestones Date (CY) 1st concrete LNG Tanks April 2012 1st concrete Train 1 foundations June 2012 Roll-on roll-off facility fully operational June 2012 1st occupancy of Curtis Island camp Q3 2012 Module
Slide 69: Port of Gladstone Overview
Port of Gladstone Overview For personal use only APLNG CURTIS ISLAND Gladstone Brisbane FLNE CELL 3 MARINA & RG TANNA GOONDOON STREET BENSTED ROAD 10 |
Slide 70: Bensted Road
Bensted Road For personal use only Location of: • Bechtel Central Office • APLNG Client Office 11 |
Slide 71: Fishermans Landing
Fishermans Landing For personal use only APLNG Cell 3 area APLNG Aggregate Conveyor APLNG FLNE Platform APLNG FLNE Passenger Terminal APLNG FLNE RO/RO 12 |
Slide 72: Fishermans Landing Northern Expansion (FLNE)
Fishermans Landing Northern Expansion (FLNE) For personal use only 13 |
Slide 73: FLNE – Ferry & Roll-On/Roll-Off
Fishermans Landing Northern Expansion (FLNE) – Ferry & Roll-On/Roll-Off For personal use only Ferry Ro/Ro 14 |
Slide 74: Curtis Island
For personal use only Curtis Island Curtis Island Site, October 2012 Curtis Island Site, at completion 15 |
Slide 75: Curtis Island – In Construction – October 2012
Curtis Island – In Construction – October 2012 For personal use only Utilities Train 2 Train 1 Flares Tank 2 Tank 1 Construction Facilities LNG Control & Jetty Maintenance MOF RO/RO Ferry & Rock Ramp Causeway 16 |
Slide 76: LNG Tanks
For personal use only LNG Tanks LNG Tank A, September 2012 LNG Tanks, September 2012 17 |
Slide 77: LNG Tanks – September 2012
LNG Tanks – September 2012 For personal use only Stick welding of vertical joints Outer shell erection 18 |
Slide 78: Material Offloading Facility – September 2012
Material Offloading Facility – September 2012 Installation of Dolphin Heads For personal use only 19 |
Slide 79: Compressor Foundations – August 2012
Compressor Foundations – August 2012 For personal use only Train 1 – Refrigeration compressor mats 20 |
Slide 80: Compressor Foundations – September 2012
Compressor Foundations – September 2012 For personal use only Train 1 – Refrigeration compressor concrete pours 21 |
Slide 81: Compressor Foundations – September 2012
Compressor Foundations – September 2012 For personal use only Train 1 – Refrigeration compressor column concrete pour 22 |
Slide 82: Compressor Foundations – October 2012
Compressor Foundations – October 2012 For personal use only Train 1 – Refrigeration compressor columns 23 |
Slide 83: Modularisation Yard in Indonesia
Modularisation Yard in Indonesia • Steel deliveries to the facility commence in July 2012 For personal use only • Module assembly commenced as expected in September 2012 Modules steel erection Piping material laydown 24 |
Slide 84: Thank you
25 | For personal use only Thank you