Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (April 2014)
26 slides from Tullow Oil's shareholder meeting presentation, Apr 30, 2014
Slide 1: 2014 Annual General Meeting
2014 Annual General Meeting 30th April 2014
Slide 2: Disclaimer
2014 Annual General Meeting Disclaimer This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business. Whilst Tullow believes the expectations reflected herein to be reason
Slide 3: 2014 Annual General Meeting
2014 Annual General Meeting 2014 ANNUAL GENERAL MEETING
Slide 4: 2013 full year results summary
2014 Annual General Meeting 2013 full year results summary 2013 2012 Change Sales revenue $2,647m $2,344m +13% Gross profit $1,440m $1,345m +7% Administrative Expenses ($219m) ($191m) Profit on disposal $30m $702m Exploration costs written off1 ($871m) ($671m) Operating profit $381m $1,185m -68% Pro
Slide 5: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 6: High margin production cash flow
2014 Annual General Meeting High margin production cash flow 2013 Group actual production: 84,200 boepd 2014 Group production guidance: 79-85,000 boepd 2013 West African Revenue Eq Guinea 14% Gabon 19% Mauritania/ Congo Côte d’Ivoire West Africa Ghana – Jubilee field (Brazz) $2.25 4% non-operated pr
Slide 7: Cash flow growth from a pipeline of future projects
2014 Annual General Meeting Cash flow growth from a pipeline of future projects Material growth potential 2016+ KENYA - South Lokichar Basin • Development studies underway; • Single basin has potential to produce Future Development Projects in excess of 100,000 bopd gross. Countries with ongoing ope
Slide 8: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 9: Strong record of resource additions & reserves replacement
2014 Annual General Meeting Strong record of resource additions & reserves replacement 2P Commercial Reserves and 2C Contingent Resources Total Resource Potential as of 31 December 2013 as of 31 December 2013 South & East Africa 2P Commercial Reserves 41% 382.4 mmboe 1,409 Europe, South America & As
Slide 10: Net contingent resource additions from E&A
2014 Annual General Meeting Net contingent resource additions from E&A 900 Ekales-1 & Agete-1 • 200mmboe / year, steady performance 800 • Strong run of success in Uganda & Ghana Twiga-1 & Etuko-1 • New basins campaigns deliver continuity Ngamia-1 700 • Low cost Kenya & Norway extend the trends Jobi-
Slide 11: 2014+ exploration programme - targeting 200mmboe p.a.
2014 Annual General Meeting 2014+ exploration programme - targeting 200mmboe p.a. Key exploration wells in the next 18 months EAST AFRICAN NORWEGIAN CONTINENTAL SHELF RIFT BASINS Norway: Ethiopia: Hanssen Q2 2014 Shimela in progress Lupus Q2 2014 Kenya: Hagar Q1 2015 Dyepa Q2 2014 Aze Q1 2015 Tasui
Slide 12: East Africa: Multiple basins with new oil province potential
2014 Annual General Meeting East Africa: Multiple basins with new oil province potential Possible campaign scenarios 8/12 basins successful 12 • Pioneering basins: - Lake Albert, Uganda (1.7Bbo) Gross Potential in Billion Barrels 10 - South Lokichar, Kenya, 7/8 (>600mmbo) 8 - Oil shows in South Omo,
Slide 13: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 14: Monetisation options & portfolio management
2014 Annual General Meeting Monetisation options & portfolio management Southern North Sea Assests UK & The Netherlands Bangladesh • S&K sale agreed for $75.6m interests • Marketing of remaining assets • Sale of Bangladesh is ongoing assets to Kris Energy completed in December 2013 TEN farm-down Pak
Slide 15: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 16: TEN – next operated deepwater project underway
2014 Annual General Meeting TEN – next operated deepwater project underway Project execution underway and on track • West Leo rig secured and first two development wells drilled • Centennial Jewel tanker-FPSO conversion underway in Singapore • All subsea contracts awarded and major equipment ordered
Slide 17: East Africa – major onshore Tertiary Rift Basin projects
2014 Annual General Meeting East Africa – major onshore Tertiary Rift Basin projects Kenya – Operated world-class onshore oil project • Favourable conditions allowing for rapid progress • Clear plan towards 2015/16 development sanction • Pipeline leadership offers regional benefits Uganda – Focus on
Slide 18: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 19: Funding: Strong balance sheet & financial flexibility
2014 Annual General Meeting Funding: Strong balance sheet & financial flexibility Highly diversified funding strategy • Balance sheet substantially strengthened through $650 million Funding Strategy debut bond issue in November 2013 Successful offering of second $650 million Corporate Bond, • comple
Slide 20: 2014 Annual General Meeting
2014 Annual General Meeting 2014 ANNUAL GENERAL MEETING
Slide 21: How we do business
2014 Annual General Meeting How we do business Creating Shared Prosperity • We manage our business in a responsible way to maximise sustainable development opportunities for host nations. • We are committed to ensuring long-term benefits to local people and economies where we operate. • The foundati
Slide 22: Open, transparent disclosure
2014 Annual General Meeting Open, transparent disclosure Economic contribution • We are committed to transparent disclosure of payments to governments and other stakeholders in the countries in which we operate • Revenue transparency and disclosure enables a country’s citizens to hold their governme
Slide 23: 2014 Annual General Meeting
2014 Annual General Meeting 2014 ANNUAL GENERAL MEETING
Slide 24: Delivering against our strategy
2014 Annual General Meeting Delivering against our strategy 2013 2014 + High Margin $1.9 billion Cash flow growth Production Cash flow 2013 Cash Flow Ghana – 2016 East Africa – 2018 Exploration & Appraisal 220mmboe Targeting 200mmboe p.a. 2013 Resource Adds Opening a new basin every 2-3 years Moneti
Slide 25: 2014 Annual General Meeting
2014 Annual General Meeting 2014 ANNUAL GENERAL MEETING
Slide 26: Tullow Oil plc
2014 Annual General Meeting Download the Tullow Investor Relations and Media App from the Apple and Android stores: Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Follow Tullow on: Tel: +44 (0)20 3249 9000 Fax: +44 (0)20 3249 8801 Email: chris.perry@tullowoil.com