Worley Limited · ASX:WOR
Worley — WorleyParsons — Macquarie Equities Investor Update (May 2005)
21 slides from Worley's conference presentation, May 2, 2005
Slide 1: Investor Update - Macquarie Equities
WorleyParsons Investor Update —- Macquarie Equities John Grill, Chief Executive Officer William E Hall, Managing Director, Americas and Europe 2 May 2005 HYDROCARBONS | 5 STRUCTURE | POWER
Slide 2: Hydrocarbons Update
WorleyParsons Hydrocarbons Update Major oil growth Shift to gas National oil companies and major independent oil companies OPEX expansion and asset management Technology developments — Gas to liquid (GTL) — LNG — Deepwater — Oil sands (case study) @ Resource challenge — High value engineering — Loca
Slide 3: Major Oil Growth
WorleyParsons Major Oil Growth & Growing at about 1.5% per annum - amounts to an increase of between 40 and 50 million BPD over current production levels by 2030 @ Driven by demand from Asia/transportation sector @ Significant shifts occurring within this growth envelope: — Output from mature fields
Slide 4: & _ x co] 60% 4
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Slide 5: By Region By Sector
WorleyParsons By Region By Sector Transportation America 4 i ; 0 fe 1990 2000 2010 2020 2030 1980 1990
Slide 6: Shift to Gas
WorleyParsons Shift to Gas @ Production is growing faster than oil at just over 2% per annum, and gas reserves are growing even faster @ 58% of the world’s gas reserves are in Qatar, Iran and Russia @ Remote location of many gas reserves has lead to high growth in LNG production and re-gasification
Slide 7: Oil and gas supply chart
WorleyParsons 100 4 90 80 70 60 50 40 30 20 10 ~~ Oil bpd ——~ gas boepd supply - million barrels oil equiv. per day Cerri reer ree een RARER ACRE BARE ASRRSCAS ERA TLSTAAERLERL ULL 1930 1950 1970 1990 2010 2030 2050 ©
Slide 8: NOCs and IOCs
WorleyParsons NOCs and lOCs @ Major independent oil companies (lIOCs) are having difficulty replacing reserves and are consolidating to provide growth @ National oil companies (NOCs) dominate oil and gas reserves and are taking a more prominent role in production, pushing the l|OCs to a more subserv
Slide 9: OPEX Expansion
WorleyParsons OPEX Expansion @ CAPEX and OPEX spend increasing — 2003 $US148b Global spend — 2004 $US159b Global spend + 8% — 2005+ 8%-10% @ Long term trend +2% (10 year) m Economic assessment approximately $US23+ barrel @ Offshore OPEX overtake CAPEX by 2010 => More projects » More brownfields
Slide 10: Technology Development
WorleyParsons Technology Development @ Gas to liquids ~— Natural gas to high quality and ultra clear fuels, lubricants and chemical product — Convert stranded gas into usable product @ LNG technology ~— Cover whole LNG supply chain ~— Lower costs of delivered LNG >20% reduction @ Deepwater Developme
Slide 11: Billions of Oil-Equivalent Barrels
WorleyParsons Billions of Oil-Equivalent Barrels 80 4920 1940 Seeps, surface exploration 2D Seismic Visualization 3D Seismic
Slide 12: Resource Challenge
WorleyParsons Resource Challenge = Increased reliance on concept selection and FEED @ For detailed design, effective use of high value engineering (HVE) — China / India /SEA/ Eastern Europe — Systems and process to operate @ Transfer of skills and knowledge to local workforce is critical @ Knowledge
Slide 13: Outlook
WorleyParsons Outlook “It is likely that the market for WorleyParsons’ services will continue to be very strong. Our key markets and sectors continue to experience positive conditions. “We indicated our expectation that the acquisition of Parsons E&C would be earnings per share accretive (pre amorti
Slide 14: Oil Sands
WorleyParsons Oil Sands
Slide 15: Heavy Oil and Oil Sands
WorleyParsons Heavy Oil and Oil Sands @ Estimated to be as much as the world’s discovered light and medium crude @ 90% of world’s total located in Canada and Venezuela @ 90% of Canada’s estimated reserves require insitu operations & Most promising recovery technology — Steam Assisted Gravity Drainag
Slide 16: InN
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Slide 17: a esis
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Slide 18: SAGD
WorleyParsons SAGD Steam Assisted Gravity Drainage (SAGD) @ Conceptually simple Drill two vertical wells into the reservoir, one above the other Inject steam through top well Steam rises to top of reservoir, melts thick crude in the process Gravity drains molten crude towards production well and out
Slide 19: SAGD
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Slide 20: SAGD
WorleyParsons SAGD @ Challenging — New technologies and fuels required to reduce steam generation costs ~— New technologies increasing Oil to Steam Ratios (OSR) — Water source availability for life of asset operations (15 years or more)
Slide 21: Canadian Oil Sands
WorleyParsons Canadian Oil Sands 174 to 250 billion barrels of oil in place 300 billion barrels “probable” recoverable 174.5 billion barrels “proven” recoverable Currently producing over 1 million BPD Plans to increase to low of 2.5 million and high of 4 million BPD by 2015 Capital intensive
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