Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (May 2010)
24 slides from Tullow Oil's shareholder meeting presentation, May 12, 2010
Slide 1: Tullow Oil plc – 2010 Annual General Meeting
Tullow Oil plc – 2010 Annual General Meeting 12 May 2010 2008 Full year results Slide 1
Slide 2: Business highlights
Business highlights • 87% exploration and appraisal success rate in 2009 • Significant g p progress g made on Ugandan g p pre-emption p and farmdown • World-class Jubilee development on track for first oil in Q4 2010 • 2009 Dividend of 6p/share • Successful equity placing strengthens balance sheet •
Slide 3: Tullow is well positioned for further growth
Tullow is well positioned for further growth Consistent and repeatable strategy - Ghana: Jubilee discovery & fast track development • Sustainable long term growth - Uganda: commercialisation, • Balance exploration, major projects & funding pre-emption & farmdown • Safety, environment, stakeholders &
Slide 4: Business Overview
Business Overview 2010 Annual General Meeting Slide 4
Slide 5: The Tullow footprint
The Tullow footprint Africa Rest of the World 2 1 2 3 1 2 10 1 12 4 7 13 14 8 5 6 2 3 Europe South Asia South America 15 1 Netherlands E 1 Bangladesh EDP 1 French Guiana E 1 2 United Kingdom EDP 2 Pakistan EDP 2 Guyana E 3 Suriname E 9 11 G Group hi highlights hli ht Africa South Asia • 38,500 boepd
Slide 6: 2009 Full year results summary
2009 Full year results summary • hfghfghfhfg 2009 2008 Change Sales revenue £582m £692m - 16% Operating profit £95m £300m - 68% Net profit £19m £226m - 92% Basic earnings g pper share 1.9p p 30.9p p - 94% Dividend per share 6.0p 6.0p 0% Capital investment £758m £480m + 58% Cash generated from operat
Slide 7: Significant 2010 capital expenditure
Significant 2010 capital expenditure • £990m forecast for 2010 Forecast 2010 - Ghana: Jubilee phase 1 development £990m & Tweneboa appraisal - Uganda: exploration and basin 2009 £760m development - High-impact exploration: Africa & South America 2008 £480m • 2010 capital p split: p 0 200 400 600 800
Slide 8: 87% global exploration success rate in 2009
87% global exploration success rate in 2009 Senegal Mauritania Netherlands Seismic Drilling 620 sqkm 1,064 sqkm 3D PSDM 1,140 sqkm 3D PSTM Acquisition Offshore PSDM 1,880 sqkm PSDM 1,164 sqkm Processing PSDM Onshore G Guyana 1,260 sqkm FTG / Grav. / Mag. PSDM 93 sqkm of 3D Sierra Leone 1,889 sqkm su
Slide 9: 2009 Group Production – 58,300 boepd
2009 Group Production – 58,300 boepd 100 90 Oil production 80 Gas production 70 UK U.K. 14,450 boepd Current production 60 Future production boepd Other licence areas 50 40 30 Pakistan 20 E.Guinea 300 boepd Mauritania 15,100 boepd 10 2,050 boepd 0 Gabon 12,000 boepd 2009 2010 2011 actual guidance es
Slide 10: End 2009 Reserves and Resources - mmboe
End 2009 Reserves and Resources - 894 mmboe 1000 Contingent Reserves and Resources 894 mmboe 900 Resources Commercial - Commercial reserves 300 mmboe 800 Reserves - Co Contingent t ge t resources esou ces 594 59 mmboe boe 00 700 600 • Potential to migrate significant Ghana & Uganda resources to Comm
Slide 11: Africa – transformational growth opportunities
Africa – transformational growth opportunities 2010 Annual General Meeting Slide 11
Slide 12: High quality pan-African portfolio of E&P assets
High quality pan-African portfolio of E&P assets Strong Portfolio • 38,500 boepd • 15 countries • 50 licences • 18 producing fields Gh Ghana Ghana • World-class discoveries Uganda - Jubilee - Tweneboa • First o oil Q4 Q 2010 0 0 • Major follow-on potential Uganda • 29 successful wells • >2 billion b
Slide 13: Ghana: Exploration & appraisal continues to deliver
Ghana: Exploration & appraisal continues to deliver Fields discovered since 2007 • Jubilee, Odum & Tweneboa 2009 Appraisal – 100% Success • Mahogany-4, Mahogany Deep-2, Odum-2 • Confirms extension of Upper Cretaceous oil plays 2010 Activity • Tweneboa-2 finds major oil & gas-condensate field • Twene
Slide 14: Jubilee Phase 1 – a new deepwater benchmark
Jubilee Phase 1 – a new deepwater benchmark On schedule and within budget • First oil on schedule for Q4 2010 • Costs remain within original budget of $3.1bn • EIA approved in December 2009 • EHS performance exceeding targets Production ramp up • Production expected to start in Q4 2010 • Ramp up to
Slide 15: Uganda: next steps in basinwide exploration & appraisal
Uganda: next steps in basinwide exploration & appraisal World-class basin discovered • Over 800 mmbo discovered; over 1.5 Bbo yet to find • 29 out of 30 wells successful (7 drilled in 2009) • New p partnership p for accelerated basinwide E&A Nearshore oil has material potential • High-flow rate King
Slide 16: The next phase for Lake Albert now under way
The next phase for Lake Albert now under way Requirement for new partnership identified early • Focus on a basin exploration strategy has delivered world-class results • Transparent farmdown process pursued with GoU support (Oct 09) • Heritage sale delivered opportunity to align new basin partners (
Slide 17: Developing a significant asset base worldwide
Developing a significant asset base worldwide 2010 Annual General Meeting Slide 17
Slide 18: Rest of the World
Rest of the World Europe South Asia South America • 14,450 boepd b d • 5,350 boepd • 3 countries • 2 countries • 2 countries • 4 licences • 28 licences • 8 licences • 16 producing fields • 2 producing fields • On-going development drilling • Production from Bangora field • Targeting Jubilee-type pla
Slide 19: Corporate Responsibility
Corporate Responsibility 2010 Annual General Meeting Slide 19
Slide 20: Corporate responsibility - creating shared prosperity
Corporate responsibility - creating shared prosperity • Corporate Responsibility influences all aspects of our operations - Environment - Health and Safety - People - Society • Working g closely y in partnership p p with all stakeholders • Ensuring that oil and gas are the catalyst for new opportuni
Slide 21: Social Enterprise projects
Social Enterprise projects Enterprise Development • Tullow Schools of Entrepreneurship • Supporting local businesses to become part of supply chain • Enterprise Hubs Education/Skills Training • Schools • Vocational and Professional Training Health • Local hospitals/health p / centres • Focus on ‘neg
Slide 22: Conclusion
Conclusion 2010 Annual General Meeting Slide 22
Slide 23: Continuing to create shareholder value
Continuing to create shareholder value • World class developments in Ghana and Uganda - Jubilee Phase 1 on track; first oil Q4 2010 - Uganda farmdown and accelerated development • Focus remains on material exploration and resources upside • Strengthened balance sheet; debt and equity placings • High
Slide 24: Tullow Oil plc
Tullow Oil plc 3rd Floor, Building 11 Chiswick Park, 566 Chiswick High Road London, W4 5YS Tel: +44 20 8996 1000 Fax+44 20 8994 5332 Investor Relations Contact Chris Perry: chris.perry@tullowoil.com 2010 Annual General Meeting Slide 24