Slide 1: ASX announcement cover note
For personal use only To Company Announcements Office Facsimile 1300 135 638 Company ASX Limited Date 30 October 2014 From Marta Kielich Pages 68 Subject Origin – Australia Pacific LNG Site Tour Presentation Please find attached a release on the above subject. Regards Marta Kielich Company Secretary
Slide 2: Origin – Australia Pacific LNG Site Tour
For personal use only Origin – Australia Pacific LNG Site Tour David Baldwin, Chief Executive Officer LNG 30-31 October 2014
Slide 3: Important Information
Important Information This presentation contains forward looking statements, including statements of current intention, statements of opinion and predictions as to possible future events. Such statements are not statements of fact and there can be no certainty of outcome For personal use only in rel
Slide 4: Safety is our first priority
Safety is our first priority For personal use only LNG TRIFR 7 2,500 6.0 6 2,000 5 Recordable Injuries / TRIFR 4.7 Man Hours (x1,000) 1,500 4 3 1,000 2 500 1 0 Total Man Hours LNG TRIFR (Rolling 12 Months) 3|
Slide 5: Operational Review and Asset Visit
Operational Review and Asset Visit CONDABRI - Day 1 For personal use only Site Tour: - Flyover of gas operations - Bus tour Condabri Central construction area - Gas processing facilities - Water treatment facilities - Landowner visit - Flyover of Curtis Island, Gladstone Presentations: Condabri
Slide 6: Australia Pacific LNG has world leading operators
Australia Pacific LNG has world leading operators For personal use only UPSTREAM – 85% complete1 DOWNSTREAM – 82% complete1 • Operated by Origin • Operated by ConocoPhillips • Over 16 years’ CSG production experience in Australia • Over 40 years’ LNG production experience • Complemented by over 25 y
Slide 7: APLNG is on track for first LNG in mid-2015
APLNG is on track for first LNG in mid-2015... For personal use only 2,000 Turndown strategies expected to deliver opportunities through the ramp period to maximise value by retaining gas for future LNG sales Train 2 1,500 TJ/Day 1,000 Train 1 500 Domestic 0 Mid-2016 Mid-2015 Production Post Turndow
Slide 8: Project progress - 84% complete at September 2014
Project progress - 84% complete at 30 September 2014 $bn For personal use only 27.0 • Project costs have been incurred Train 1 Train 2 100% ahead of project activity, with non- 24.0 22.5 operated activity and spend 21.0 21.0 91% incurred ahead of APLNG operated 90% fields (% project complete 85% 18.
Slide 9: Origin contributed $751 million to APLNG in September 2014 Quarter
Origin contributed $751 million to APLNG in September 2014 Quarter $m For personal use only 1000 100% • In Q1 FY2015, Project capital expenditure has reduced 88% 89% 89% to 75% of Origin’s $751 million contribution to APLNG. This 86% 85% proportion will continue to reduce during FY2015 as the Projec
Slide 10: Field Performance / Exploration & Appraisal
For personal use only FIELD PERFORMANCE/ EXPLORATION & APPRAISAL
Slide 11: APLNG's reserves base includes prime acreage in sweet spots
APLNG’s reserves base includes prime acreage in both known and industry accepted “sweet spots” in Queensland … For personal use only PJ 100% APLNG Reserves and Resources1 20,000 15,000 10,000 5,000 - Estimated Requirements APLNG tenure in the Surat and Bowen basins at 3P 2P 1P 30 April 2014 Ramp and
Slide 12: Strong reserve increases from recent acreage additions
Strong reserve increases from recent acreage additions, successful appraisal … For personal use only Increased data density from development drilling improves understanding Successful appraisal to fill in ‘data gaps’ Accelerated maturation in recent acreage additions with results better than expecte
Slide 13: Surat & Bowen Exploration & Appraisal Programme CY 15/16
Surat & Bowen Exploration & Appraisal Programme CY 15/16 targeting upside potential and application of new technology Bowen Low Perm Horizontal pilots to be drilled in CY2015. For personal use only Reids Dome. Follow up drilling complete. Excellent results obtained. Pilot to be accelerated into CY20
Slide 14: Maximum well deliverability considerably higher than current production
Maximum well deliverability considerably higher than current production levels indicate given current turndown strategy… For personal use only • The operated wells to be drilled for Phase 1 are expected to produce around 1,200 TJ/d1, with an additional 200 TJ/d1 from non-operated assets • The observ
Slide 15: Typical Phase Well Forecast
Typical Phase 1 Well Forecast For personal use only Dewatering Stable Production Stage Decline Stage • Typical phase 1 well forecast to Stage 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 years Water – a
Slide 16: Spring Gully Production Performance
Spring Gully Production Performance Gas performance of new Phase 1 wells continues to ramp up … For personal use only Phase 1 Spring Gully Gas and Water Production Spring Gully Phase 1 Production 40000 20000 Uplift due to optimisation with 35000 fixing micro turbines 17500 30000 15000 Water Producti
Slide 17: Condabri Production Performance
Condabri Production Performance Gas performance of new Phase 1 wells tracking well … For personal use only Condabri - Average Well Performance 1200 Actual Gas Average 1000 Field turndown capability 800 • Chart shows average performance per well for the Average Gas Rate (GJ/d) online duration of each
Slide 18: Condabri Outlook
Condabri Outlook As anticipated, well deliverability has increased over the last 6 months … For personal use only Condabri field ~6 months production Condabri field ~12 months production Condabri Gas and Water Production Condabri Gas and Water Production 5000 5000 5000 5000 Maximum Well Deliverabili
Slide 19: Combabula/Reedy Creek and Orana
Combabula/Reedy Creek and Orana For personal use only For those fields with little production data, completion rig flow tests provide an early indication of well performance … Flow Test Results More Productive Water Rate (bbl/d) tested by completions rig Early data indicates Orana performance better
Slide 20: Non-operated joint ventures progress (QGC-operated)
Non-operated joint ventures progress (QGC-operated) For personal use only Bellevue (ATP 610) • 63 wells put on production* • Bellevue CPP (220 TJ/d) – 100% complete (ready for start-up and has achieved forward flow) Kenya (ATP 620) • 260 wells put on production* • Kenya CPP (180 TJ/d) - online Kenya
Slide 21: Non-operated joint ventures progress (GLNG-operated)
Non-operated joint ventures progress (GLNG-operated) Fairview (ATP 526) For personal use only • 200 wells online • Hub Compressors 4 (250 TJ/d) & 5 (160 TJ/d) under commissioning Arcadia (ATP 653) • E&A work only Hub Compressor 5 ATP(150 631, 745 TJ/d) & 804 – under • commissioning E&A work only Non
Slide 22: Upstream Project Delivery
For personal use only UPSTREAM PROJECT DELIVERY
Slide 23: Upstream Project Goals
Upstream Project Goals • Health and Safety For personal use only 1 • Zero Harm – Gathering system review underway • Environment and Land 2 • Honour our Commitments – Phase 1 essentially complete • Safe & Operable Production System 3 • Automation from the central control room is operational • Project
Slide 24: Upstream Project progress - 85% complete and on track
Upstream Project progress - 85% complete1 and on track For personal use only Upstream Operated Goals HY2015 Plan Actual Progress to 30 September 2014 Orana Train 1 mechanical completion Q1 Accomplished Reedy Creek Train 1 mechanical completion Q1 Accomplished Orana Train 2 mechanical completion Q2 A
Slide 25: Upstream development land, environmental and stakeholder management
Upstream development land, environmental and stakeholder management is progressing For personal use only Phase 1 Operated Drilling (no of wells) 1,200 6 109 Landholder 1,000 agreements 75 800 Drilling and 600 completion 1086 Gas and water 988 gathering 910 400 200 0 • Activity is focussed on Sustain
Slide 26: Upstream development implementation – Phase operated well progress
Upstream development implementation – Phase 1 operated well progress - September 2014 For personal use only Western Fields Eastern Fields Spring Gully Combabula / Reedy Creek Condabri Talinga / Orana 25 |
Slide 27: Upstream development implementation - Drilling and Completion
Upstream development implementation - Drilling and Completion For personal use only • 910 Phase 1 operated wells drilled (spudded)* • 856 Phase 1 wells completed* • 75 Sustain operated wells drilled* • 17 Sustain wells completed* • 11 drilling rigs • 7 completion rigs • 3 flush-by rigs Drilling Comp
Slide 28: Well head technology
Well head technology For personal use only Key features that enable a wellhead separator to operate under a wide range of operating conditions include the following: 1. Automated Control System – includes instrumentation, communication/Telemetry to a central control room to enable operator assisted
Slide 29: Upstream development implementation - Gathering
Upstream development implementation - Gathering For personal use only • 959 drilling lease preps • 583 diameter-kilometres of flow lines installed (988 equivalent wells) • Installation of cable, gas and water High Density Polyethylene (HDPE) pipe to wells through trenching operations is ongoing • Co
Slide 30: Upstream development implementation – Gas and Water Facilities
Upstream development implementation – Gas and Water Facilities For personal use only • All remaining modules in laydown or on site ready for construction • Construction of all facilities to support gas production for the start of up LNG Train 1 is complete • Condabri Central Gas Processing Facility
Slide 31: Upstream development implementation - Pipeline
Upstream development implementation - Pipeline For personal use only • Pipeline design features: 360 km 42-inch main trunk line and 160 km lateral pipelines to gas fields • The main pipeline construction is complete and commissioned on the mainland • First gas (for commissioning) to Curtis Island ex
Slide 32: Upstream development implementation - Electrification
Upstream development implementation - Electrification • Power operational in the East • Western region progressing supported by temporary power stations For personal use only Western Region Electrification 275kV/132 kV Network Power Stations: “Wandoan South to Eurombah Transmission Project” EC 1 (27
Slide 33: Upstream development implementation - Water
Upstream development implementation - Water For personal use only • Eastern water management systems are in place and operating: - Produced water connections between Condabri, Talinga, Orana and QGC Kenya facility are operational - Treated water connection between Talinga and Condabri completed with
Slide 34: Commissioning & Operational Readiness
For personal use only COMMISSIONING & OPERATIONAL READINESS
Slide 35: Well Commissioning Overview
Well Commissioning Overview For personal use only 1. Well Commissioning Team now delivering 70+ wells per month across the development 2. First well commissioned at Reedy Creek in late May 2014, at Orana in early July 2014 and at Combabula in October 2014 3. Phase 1 Well Delivery status (30 Sept 201
Slide 36: Gas and Water Facilities Commissioning Overview
Gas and Water Facilities Commissioning Overview Eastern Region For personal use only 1. Condabri - Condabri Central Train 1 commissioned during June 2014 - Condabri Central Train 2 commissioned in mid October 2014 - Condabri South Train 1 pre-commissioning activities underway. Commissioning expected
Slide 37: Pipelines Commissioning Overview
Pipelines Commissioning Overview For personal use only 1. Pipelines a) Ruby spur line and Condabri/Talinga pipeline commissioning complete b) Gas received into Main Pipeline South in October 2014 c) Condabri Lateral North commissioning complete and line packed d) Woleebee Lateral pre-commissioning i
Slide 38: Operations Readiness Key Focus Areas
Operations Readiness Key Focus Areas Current Focus Areas For personal use only • Safe Start Up of Orana T1 and Reedy Creek T1 • Managing defects impacting production and safety from the Phase 1 project • Handover to operations for Condabri Central T1 – critical documentation and commissioning close
Slide 39: Sustain Phase
For personal use only SUSTAIN PHASE
Slide 40: Drilling continues in the Walloons and Spring Gully areas through to 2020
Drilling continues in the Walloons and Spring Gully areas through to 2020 … For personal use only Development focused on Walloons and Spring Gully in period to 2020: • Moving out from, and infill drilling in, initial development areas • ~75% of wells in the Walloons • Focus on reducing drill & conne
Slide 41: Targeting a 30% decrease in drill and connect costs
APLNG is targeting a 30% decrease in drill and connect costs through improved execution & design improvements… For personal use only • Seeking a significant decrease in drill and Average drill and connect cost / well connect costs through: ($m/single vertical well) - Changed market dynamics on resou
Slide 42: Targeting decreases in cost/GJ through new well concepts
APLNG is targeting decreases in cost/GJ and increased productivity through application of new well concepts… For personal use only 1 Horizontal wells in Spring Gully deliver increased production/well. Increased drill costs offset by reduced connections 2 Multi-well pad & deviated drilling trials und
Slide 43: Focus on increasing well availability to drive down costs
In addition to operational readiness, the focus is on increasing well availability to drive down costs and increase production efficiency For personal use only As more wells come online, we aim to realise scale benefits, driving down operating costs, with specific areas of focus to optimise activiti
Slide 44: Downstream Project Delivery
For personal use only DOWNSTREAM PROJECT DELIVERY
Slide 45: Curtis Island designated as an LNG precinct
Curtis Island has been designated as an LNG precinct by the State and Federal governments For personal use only 44 |
Slide 46: APLNG Downstream Facilities
APLNG Downstream Facilities Liquefaction of natural gas is an established technology. The project utilises the Optimised Cascade Technology similar to the Darwin LNG project which has operated since 2006 For personal use only • Two trains of 4.5 mtpa capacity and each train has: - 6 General Electric
Slide 47: Optimised Cascade Process
Optimised Cascade Process For personal use only 46 |
Slide 48: Downstream Project progress – 82% complete and on track
Downstream Project progress – 82% complete1 and on track For personal use only HY2015 Downstream Operated Goals Actual Progress to 30 September 2014 Plan Accomplished: September 2014 Complete loading platform for LNG jetty Q4 FY14 (no consequential impact to critical path) Inlet Air Chiller Package
Slide 49: Project Highlights
Project Highlights For personal use only • Downstream project completion at 82% at 30 September 2014 – Engineering and Procurement are both >99% complete – All materials needed for Train 1 start-up are now available with no impediments to construction – Construction manning is at peak and will remai
Slide 50: Downstream project current status - Construction
Downstream project current status - Construction For personal use only LNG TRAINS MARINE FACILITIES • Train 1 construction 77% complete (at 30 • All concrete pours are complete. Electrical works September 2014). All modules and major are complete on the loading platform and dolphins equipment have b
Slide 51: Construction
Construction For personal use only Pipe and Cable Installation Progressing Hydro testing complete on both LNG Tanks 50 |
Slide 52: Full operations
Full operations For personal use only • Key data 4.5 mtpa per LNG train ~730TJ/day gas rate per train ~30,000m3/day of LNG per train ~6 days to fill a Tank when one train running, ~3 days to fill a tank when two trains running Ship every 6 days with one train & every 3 days with two trains
Slide 53: Curtis Island - August 2014
Curtis Island - August 2014 For personal use only 52 |
Slide 54: Trains & Inside Battery Limits (ISBL) – August 2014
Trains 1 & 2 Inside Battery Limits (ISBL) – August 2014 For personal use only 53 |
Slide 55: Train – August 2014
Train 1 – August 2014 For personal use only Train 1 Pipe connections between Compressor Building and Module 101D (Cryo Coolers) 54 |
Slide 56: Train Area – August 2014
Train 2 Area – August 2014 For personal use only 55 |
Slide 57: Train – August 2014
Train 2 – August 2014 For personal use only Large-Bore Spools Ready for Pneumatic Testing Setting Module 202NB (Propane Condenser) 56 |
Slide 58: LNG Tanks – August 2014
LNG Tanks – August 2014 For personal use only 57 |
Slide 59: Permanent Buildings – August 2014
Permanent Buildings – August 2014 For personal use only Train 1 Compressor Control Building, Cable Pulling under Floor 58 |
Slide 60: LNG Jetty – August 2014
LNG Jetty – August 2014 For personal use only 59 |
Slide 61: Module Yard – August / September 2014
Module Yard – August / September 2014 For personal use only Shipment of Propane Condenser Module 202NA – 9 August Cryo/AGRU Rack 202EA Shipped 19 September 60 |
Slide 62: Module Yard – October 2014
Module Yard – October 2014 For personal use only Shipment of Inlet Air Chiller Loose Spools 3 October 2014 Cryo/AGRU Rack (202DB) & Methane/NRU Cold Box Rack (202GA) Sailed away 6 October 2014 61 |
Slide 63: Appendix - Metrics
For personal use only APPENDIX 1 - METRICS 62 |
Slide 64: First full year of earnings and cash flows from both trains expected FY2017
The first full year of earnings and cash flows from both APLNG trains is expected to be FY2017… For personal use only • With the phased start up of Train 1 and Train 2, APLNG’s FY2016 financial results will be subject to the following factors: • The rate at which LNG production ramps up from ready f
Slide 65: APLNG Reference Information – Sales
APLNG Reference Information Reference information in respect of the APLNG project and operations For personal use only Sales Reference Metric Source LNG Train Capacity 9.0 mtpa FID2 Presentation 4 July 2012 Contract LNG Export Volumes 8.6 mtpa FID2 Presentation 4 July 2012 LNG Export Contracts Terms
Slide 66: APLNG Reference Information – Operating Expenditure and Project Finance
APLNG Reference Information Operating Expenditure For personal use only Reference Metric Source Operating expenditure Key components comprise May 2014 site tour presentation • Downstream liquefaction costs • Upstream operating expenditure includes: • Upstream well & facilities maintenance and reliab
Slide 67: APLNG Reference Information – Upstream Sustaining Capital Expenditure
APLNG Reference Information Upstream Sustaining Capital Expenditure For personal use only Reference Metric Source Upstream sustaining capital • Expect around 300 operated wells drilled per May 2014 site tour presentation expenditure year in near term • Drill, complete, connect cost approximately $3m
Slide 68: Thank You
For personal use only THANK YOU