Origin Energy Limited · ASX:ORG
Origin Energy — Technical Presentation (September 2011)
45 slides from Origin Energy's technical presentation, Sep 20, 2011
Slide 1: APLNG Project Overview
APLNG Project Overview Presented by David Baldwin Chief Development Officer Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 2: APLNG is underpinned by a strong, aligned joint venture
APLNG is underpinned by a strong, aligned joint venture that combines Origin‟s leading position in Australian CSG development and ConocoPhillips‟ extensive LNG and CSG capabilities … • Australia‟s largest integrated • Integrated energy company • Integrated energy and chemical company energy company
Slide 3: APLNG has achieved major milestones during the year
APLNG has achieved major milestones during the year … State and Federal approvals of Environmental Impact Statement Binding agreement with Sinopec for 20-year 1-train LNG off-take agreement and Sinopec was issued 15% equity in APLNG Completion of front-end engineering and design studies Sign
Slide 4: Construction is underway on the first phase of a $20 billion project
Construction is underway on the first phase of a $20 billion project … Key Highlights • 65,000 ha of land area • 2 x 40 Ml water treatment plants • 1,200+ easements for wells and pipeline • 2 x 4.3 mT/y LNG liquefaction trains • 1,000+ production wells • 2 LNG storage tanks • 3,000 km of gas and wat
Slide 5: The APLNG project is being delivered by Origin and ConocoPhillips
The APLNG project is being delivered by Origin and ConocoPhillips UPSTREAM OPERATOR DOWNSTREAM OPERATOR 5|
Slide 6: Origin is Australia's largest CSG producer
is Australia‟s largest CSG producer • Leverages Origin‟s 14 years‟ CSG production experience • High value and high productivity fields prioritised for ramp-up period • Experience with local community, State and Federal Authorities • Non Operated interests with both Santos and QGC, good internal benc
Slide 7: ConocoPhillips has 40 years of LNG project experience
has 40 years of LNG project experience • ConocoPhillips has 25 years experience in CSG and 40 years experience in LNG production • ConocoPhillips and Bechtel formed a global LNG Collaboration in 1996 • The collaboration centre is staffed by employees from both companies and utilises ConocoPhillips‟
Slide 8: The APLNG project involves integration of 7 sub-projects
The APLNG project involves the integration of 7 sub-projects … Gas & LNG plant, Drilling Gathering Water Pipelines Electric Water tanks & Facilities terminal 8|
Slide 9: Each executed to allocate risks to the party best able to manage them
… each executed in a manner which appropriately allocates risks to the party which can best manage them … … and in so doing, optimises development flexibility Gas & LNG plant, Drilling Gathering Water Pipelines Electric Water tanks & Facilities terminal Pre-FEED & Origin Origin/ Origin Origin Engine
Slide 10: Risks allocated to and managed by the party best able
Risks have been allocated to, and are Cost/schedule risk mitigated being managed by the party best able Cost/schedule risk mostly mitigated to do so Cost/schedule risk partially mitigated Cost/schedule risk with APLNG Gas & LNG plant, Drilling Gathering Water Pipelines Electric Water tanks & Facilit
Slide 11: Wells Scouted - Cumulative
Origin is leveraging 14 years of CSG experience in executing the Upstream scope … Forecast suggests wells scouted will be more than 500 by end 120 December 2011 600 543 100 500 Wells Scouted - Cumulative Wells Scouted - Monthly Lease acquisition 80 400 400 Target of 60 400 wells 300 scouted by Drill
Slide 12: Execution risk is appropriately managed
Execution risk is appropriately managed … • Industry leaders engaged for all key contracts and services of the project Strong Management • Broad resourcing channels to obtain quality people with specialised skills and Quality Teams • Integration and interfacing team established to drive alignment •
Slide 13: APLNG Project – Upstream Project Delivery
APLNG Project – Upstream Project Delivery Presented by Janet Hann General Manager, APLNG Delivery Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 14: Upstream Project Goals
Upstream Project Goals 1 • Health and Safety • Zero Harm 2 • Environment and Land • Honour our Commitments 3 • Safe & Operable Production System > 1,900 TJ/d 14 |
Slide 15: Upstream Project Goals
Upstream Project Goals 4 • Project within schedule and budget • PMO has developed estimating, planning, measuring and forecasting tools and scorecards 5 • Team effectiveness • Indicator of future project performance 15 |
Slide 16: Drilling
Drilling • Drilling and completions managed like a manufacturing process • Small improvements make large impacts due to large well count • Leverage cost reduction through technology and scale • Hybrid coiled tubing and automated drilling rigs • Zero to minimal lease construction • Rapid deployment •
Slide 17: Phased Development
Phased Development • Phase 1: 5 years of gas plant and pipeline construction, drilling and completion of ~1,000 wells • Phase 2 : ~20 years of ongoing drilling ~8,000-9,000 wells, well completion and construction of gathering networks (2 trains, over 30 years, excluding technology improvement consid
Slide 18: Completion Rigs
Rig Requirements Total Drilling Rigs Requirements 5.0 1200 4.0 1000 Drilling Rigs 800 3.0 600 2.0 400 1.0 200 0.0 0 Total Completion Rigs Requirements 6.0 1200 5.0 1000 Completion Rigs 4.0 800 3.0 600 2.0 400 1.0 200 0.0 0 18 |
Slide 19: Gathering Opportunities
Gathering Opportunities • Budget estimate based on Contractor Involvement (design competition) • Wellhead separators from Offshore Module Yard (competitively tendered unit rates) • Opportunities to learn from improved construction techniques and design : • APLNG assumes 100% trench opportunities to
Slide 20: Gas Plant: Simple and Repeatable
Gas Plant: Simple and Repeatable 85 TJ/d Gas Processing Facility Train • Improved design has significantly reduced footprint • >90% offsite fabricated/pre-assembled (based on tonnage) 20 |
Slide 21: Condabri Development
Condabri Development Camps Water Camps Camps Treatment Facility & Gas Plant Feed Pond Vegetation Switchyard Buffer Brine Ponds Q100 Flood Limit 21 |
Slide 22: Electrification
Electrification 132 kV Network Data pack submitted to Powerlink 275 kV NRP Stage 1 & 2 Project approved by Minister and Board of Powerlink. Committed project status. Stage 2 final EIS Terms Of Reference published Roma 132 kV to Tarong ` 132kV Load Management Scheme Load support agreement discussion
Slide 23: Pipelines Development
Pipelines Development • Mainline Pipeline Contract (MPC) - Large diameter High Pressure Gas Network (HPGN) (~120 km of the HPGN) - EPC (including HPGN Design) - Awarded to MCJV on Early Contractor Involvement (ECI) basis - Sequential construction plan - Final price submission 31 March 2011 - Fully n
Slide 24: Water Solutions - Base Case
Water Solutions - Base Case • Treatment of 100% of produced water through Reverse Osmosis (RO) and brine concentration (using Multiple Effects Distillation (MED) technology) • Pulsed discharge to rivers to match natural flow patterns • Irrigation (as parallel option to river pulsing or where river d
Slide 25: Land Access
Land Access • Land Purchase for Major Facilities • Of the 10 properties required, APLNG owns 9 • Final property (Combabula Gas Plant) to have access via lease arrangement, initial negotiations have commenced – awaiting final constraints analysis and site selection. This property includes 164 wells •
Slide 26: Compressors in Germany
Compressors in Germany O J origin 26 |
Slide 27: Fabrication Yards in Thailand
Fabrication Yards in Thailand 27 |
Slide 28: Summary
Summary • Reserves certainty • Great deliverability from sweet spots • Drilling and well design • Low & high pressure, gas and water pipelines • Gas and water treatment plant designs • Power supply • Focus on modular, repeatable, flexible, safe and economic solutions • Focus on project team effectiv
Slide 29: APLNG Project – Curtis Island (Downstream Project)
APLNG Project – Curtis Island (Downstream Project) Presented by David Baldwin Chief Development Officer Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 30: Gladstone and Curtis Island
Gladstone and Curtis Island 30 |
Slide 31: Gladstone and Curtis Island
Gladstone and Curtis Island 31 |
Slide 32: APLNG Facility Site
32 | APLNG Facility Site TShIZE Reclaimation Area 35.7 ha B55 China Lease Area 104.1 ha Part of Seabed \ \ North Passage \ Island South Passage [ears & bsten Fishermans Landing Curtis origin
Slide 33: APLNG Community Centre
APLNG Community Centre 33 |
Slide 34: Thank you
Thank you 34 |
Slide 35: APLNG, Phase 1 Implementation – Downstream
APLNG, Phase 1 Implementation – Downstream Presented by David Hayter Deputy Project Director, Downstream Project Origin Operational Review and Asset Visit 19-20 September, 2011
Slide 36: Curtis Island designated as an LNG precinct
Curtis Island has been designated as an LNG precinct with the full support of the State and Federal governments 36 |
Slide 37: Liquefaction of natural gas is an established technology
Liquefaction of natural gas is an established technology, with project design based on the Darwin LNG project which has operated since 2006 • In an LNG plant, CSG is cooled to -161oC causing it to condense and liquefy, ready for transportation by ship 37 |
Slide 38: ConocoPhillips Optimized Cascade technology used across the world
ConocoPhillips Optimized Cascade® technology has already been utilized extensively across the world … Kenai Egyptian Sabine Pass Atlantic (Trinidad) Brass (Nigeria) All 3 East Coast LNG plants Under Development Equatorial Guinea are on Curtis Island Angola Darwin Queensland Curtis (2011) GLNG Wheats
Slide 39: APLNG's contracting strategy provides flexibility and cost management
APLNG‟s contracting strategy provides the optimum level of flexibility and cost management APLNG Project Contracting Development Phase Execution Phase Operations Contractable Packages Engineering/ Site Engineering Procurement Modularization Fabrication Transportation Commissioning Start-Up Procureme
Slide 40: APLNG will leverage ConocoPhillips and Bechtel technology and experience
APLNG will leverage the technology and experience of ConocoPhillips and Bechtel in project delivery and design • ConocoPhillips and Bechtel Global formed a Global LNG Collaboration in 1996 • The collaboration centre is staffed by employees from both companies and utilises ConocoPhillips‟ proprietary
Slide 41: Modularisation Strategy
Modularisation Strategy • Development of the Gladstone LNG Industry precinct will have many projects competing for limited Australian labour • A significant modularisation program is planned to move labour offshore, reducing risks in the Downstream project • Fabrication yards have been shortlisted w
Slide 42: Dredging Works by Gladstone Port Corp (GPC)
Dredging Works by Gladstone Port Corp (GPC) • Two Work Packages: o Early Works (Civil – quarry, haul road, and bund wall to build reclamation area) o Main Works (Dredging and Disposal for LNG) • GPC will be the counterparty to both EPC contracts • LNG Proponents will fund the programs via separate a
Slide 43: Shipping
Shipping • The delivery point for the LNG sales contract with Sinopec is at APLNG‟s wharf (i.e. sales are on a FOB basis). As such, all shipping risk remains with Sinopec to transport the LNG from Gladstone to the re- gasification facilities in China • LNG from APLNG will be directed to 3 proposed S
Slide 44: Origin assurance processes around the LNG Downstream Project Execution
Origin assurance processes around the LNG Downstream Project Execution • Working with shareholders through the APLNG JV structure and its various sub-committees to provide direction and support to the Strategise project team • Continuous engagement between operator and shareholders functioning as on
Slide 45: Thank you
Thank you 45 |
Origin Energy — Technical Presentation (September 2011) on 6ix