SLB Limited · NYSE:SLB
SLB — SIS Global Forum 2019
13 slides from SLB's conference presentation, September 2019
Slide 1: Research on Operation Strategy and Method of West Africa integration project
SIS Global Forum 2019 Research on Operation Strategy and Method of West Africa integration project Guo Xiaofei Sep. 2019 1
Slide 2: Introduction, Analyze, Case Study, Conclusion
SIS Global Forum 2019 Introduction Analyze Case Study Conclusion 2
Slide 3: Introduction
Introduction SIS Global Forum 2019 Integration project Upstream • the West African oil and gas resources project - located in the inland project domestic sales of the host country of the resources to establish a long pipeline to the international market. Refinery Pipeline project project • Interna
Slide 4: Pipeline integration project
Analyze SIS Global Forum 2019 Upstream and Pipeline integration project When the cost recovery pool is sufficient, Production Sale Price • Contractor’s Cash Inflows = Cost Recovery + Profit Sharing= Cost Transportation cost Recovery + (Revenue - Cost Recovery) ×Profit Sharing Rate=CR(1- Sales Ne
Slide 5: Pipeline integration project
Analyze SIS Global Forum 2019 Upstream and Pipeline integration project If the unrecovered investment is huge, the real recoverable cost per year Production Sale Price is the cost recovery ceiling (CRC), Transportation cost • Contractor’s Cash Inflows = Cost Recovery + Profit Sharing= CRC× Sales
Slide 6: Pipeline integration project
Analyze SIS Global Forum 2019 Upstream and Pipeline integration project Transportation Contractor’s Net Cash flows = Revenue- Capex- Opex- Income Tax Volume cost If the annual profit is positive, Revenue • Income Tax = Profit × Income Tax Rate= (Revenue – Opex – Depreciation) ×ITR Capex, Opex
Slide 7: Refinery integration project
Analyze SIS Global Forum 2019 Upstream and Refinery integration project When the cost recovery pool is sufficient, Production Sale Price • Contractor’s Cash Inflows = Cost Recovery + Profit Sharing= Cost Recovery + (Revenue - Cost Recovery) ×Profit Sharing Rate=CR(1- Sales Net Back Price PSR) +O
Slide 8: Refinery integration project
Analyze SIS Global Forum 2019 Upstream and Refinery integration project Production Sale Price If the unrecovered investment is huge, the real recoverable cost per year is the cost recovery ceiling (CRC), Sales Net Back Price • Contractor’s Cash Inflows = Cost Recovery + Profit Sharing= CRC× Reve
Slide 9: Refinery integration project
Analyze SIS Global Forum 2019 Upstream and Refinery integration project Contractor’s Net Cash flows = Revenue- Crude Oil Purchase - Capex- Refined Refined Oil Oil price Volume Opex- Income Tax= Revenue- Crude Oil Purchase - Capex- Opex- (Revenue- Crude Oil Purchase - Depreciation- Opex) ×Income
Slide 10: Analysis and Generalize
Analyze SIS Global Forum 2019 Analysis and Generalize The influence from the link variable has the following common to both integration projects, "upstream + pipeline", "upstream + refinery" • Upstream and pipeline or refinery have reverse changes, that is, when upstream net cash flow increases,
Slide 11: Analysis and Generalize
Analyze SIS Global Forum 2019 Analysis and Generalize PSR × WI the cost pool is sufficient ＞ (1-ITR) × WI improving upstream economics (CRC-CRC × PSR) × WI the cost pool is insufficient PSR × WI the cost pool is sufficient ＜ (1-ITR) × WI improving downstream economics (CRC-CRC × PSR) × WI the cost
Slide 12: Case Study
Case Study SIS Global Forum 2019 PSR × WI upstream＞(1-ITR) × WIdownstream PSR × WI upstream＜(1-ITR) × WIdownstream Cumulative Cashflows Changes with different Cumulative Cashflows Changes with different Transportation Fee Transportation Fee 80.0 100.0 Cumulative Cashflows Cumulative Cashflows 60
Slide 13: Conclusions
Conclusions SIS Global Forum 2019 Whether it is the "upstream and pipeline" integration project or the "upstream and refinery" integration project, the influence from the link variable has the following common: • Upstream and pipeline or refinery have reverse changes. • Change Rate of the internat