Orron Energy AB · OMXSTO:ORRON
Orron Energy AB — Lundin Petroleum — Investor Day (February 2016)
99 slides from Orron Energy AB's investor day presentation, Feb 3, 2016
Slide 1: Lundin Petroleum Capital Market Day
Lundin Petroleum Capital Market Day 3 February 2016 WF11879 03/02/16 Lundin Petroleum 1
Slide 2: Agenda
Lundin Petroleum Capital Market Day Agenda 1. Introduction Alex Schneiter - President and CEO 2. Corporate Overview - Production Nick Walker - Chief Operating Officer - Reserves and Resources Nick Walker - Chief Operating Officer - Capital Expenditure and 2016 Work Programme Teitur Poulsen - VP Corp
Slide 3: Introduction
Introduction Capital Market Day, 3 February 2016 Lundin Petroleum 3
Slide 4: Strategy
Lundin Petroleum Strategy Grow production at low cost 2016 guidance 60,000–70,000 boepd at below USD 10/boe operating costs >150,000 boepd when Johan Sverdrup on full-field plateau Operating costs at significantly below USD 10/boe Continue to pursue an organic growth strategy Finding cost in Norway
Slide 5: Financial Flexibility
Lundin Petroleum Financial Flexibility Reserve base lending (RBL) remains core to our funding. USD 5 billion RBL accordion signed Robust balance sheet with liquidity headroom of MUSD 760 (RBL + exploration refund facility) Access to additional liquidity of MUSD 900 RBL accordion option (MUSD 700) Be
Slide 6: Resources
Lundin Petroleum Resources Over 1 billion barrels of 2P reserves + contingent resources 2P reserves of 685 MMboe with 96% oil and 98% in OECD countries High quality oil selling at close to Brent parity R/P ratio ~30 based on 2016 production guidance Discovered 830 MMboe of commercial resources in No
Slide 7: Developments
Lundin Petroleum Developments Johan Sverdrup development a cornerstone for Lundin Petroleum’s valuation and financial flexibility Full field capex of USD~11/boe Full field opex of USD~5/boe – lower at plateau Reduced capex has significantly lowered the breakeven oil price Developed and brought onstr
Slide 8: Adjustment for Market Conditions
Lundin Petroleum Adjustment for Market Conditions Reduced discretionary spend to a minimum and focused spend on ongoing developments and operations E&A programme Maintain strategic activity in Southern Barents Sea, Utsira High and Sabah, Malaysia Reduced spend by 65% over 2015 Continued focus on red
Slide 9: Corporate Responsibility In Practice
Corporate Responsibility In Practice Promoting responsible business conduct through Employee awareness Internal processes Contractor management Stakeholder engagement Supporting international initiatives on Human Rights, Anti-Corruption and Climate Change Rated as Outperformer in the Sector by Susta
Slide 10: Strong HSE Performance
Corporate Responsibility Health, Safety and Environment Performance Three operated projects executed in the last year Personnel safety No serious incidents Strong Focus on continuous improvement HSE Process safety Performance No serious incidents Environmental footprint No recordable oil spill Focus
Slide 11: Corporate Overview: Production
Corporate Overview Production Capital Market Day, 3 February 2016 Lundin Petroleum 11
Slide 12: 2015 Production
Lundin Petroleum 2015 Production New projects 2015 Production Existing Asset Base 70 Malaysia, 17% Indonesia, 5%(1) 60 Netherlands, 5% E. Grieg first oil 50 28 Nov 2015 France, 9% Mboepd Bertam first oil 40 Norway, 64% Bøyla first oil April 2015 Jan 2015 30 Full year latest guidance 20 2015 producti
Slide 13: January 2016 Average Production
Lundin Petroleum January 2016 Average Production: 64,000 boepd Net January Net Production 90 90 80 80 70 70 60 60 50 50 Mboepd Edvard Grieg 40 40 30 30 Base Assets 20 20 10 10 0 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 WF12158 p09 01.16 January 2
Slide 14: 2016 Production Guidance
Lundin Petroleum 2016 Production Guidance 2016 production guidance: 60 – 70,000 boepd Production guidance reflects the ramp up of Edvard Grieg 2016 Net Production Guidance (Mboepd) 2016 Forecast 100 100 High Low Malaysia 13% Alvheim hub 21% 80 Jan Actual 80 France 4% 64 Mboepd Netherlands 2% 60 60 B
Slide 15: Production Forecast from Ongoing Development
Lundin Petroleum Johan Sverdrup Other existing Production Forecast from Ongoing Development Phase 2 contingent and prospective resources not included in 4 projects delivered in last 14 months production forecast 150,000 boepd Johan Sverdrup Phase 1 Ivar Aasen E Grieg, 28.11.15 Bertam, 05.04.15 Bøyla
Slide 16: Norway - Greater Alvheim Area
Norway - Greater Alvheim Area 2015 Net Production 14,800 boepd Continued strong operating (uptime 94%) and subsurface performance Low cost of operations < 6 USD/boe Viper/Kobra project progressing to plan Portfolio of good in-fill drilling opportunities supported by 4D seismic New rig contract award
Slide 17: Greater Alvheim Area Continued Sub-Surface Success
Viper / Kobra Norway – Greater Alvheim Area Viper Continued Sub-Surface Success 25/4-10S 2015 Wells L4 – 1,500 bopd gross 25/7-5 Kneler KA5 – 4,400 bopd gross 2016 Wells/Projects Boa Kam North - first oil June 2016 2 successful pilots set-up future infill wells 25/7-6 Kobra 3 branch producer with 5,
Slide 18: Norway - Brynhild
Norway - Brynhild (WI 90%) Brynhild field 2015 Net Production 4,200 boepd Injector (A4) Haewene Brim FPSO performance improving Water handling constraints resolved Integrity issues being resolved Water injection commenced - remains a challenge Producer (A1) Facilities uptime expectations reduced Res
Slide 19: Norway - Edvard Grieg
Norway - Edvard Grieg (WI 50%) Production Commenced - Well Potential >90,000 boepd gross Edvard Grieg actual gross production (boepd) Strong initial facilities and reservoir performance Facility capacity: 100,000 boepd 1 3 wells on line – total well capacity >90,000 boepd 100,000 Significantly excee
Slide 20: Malaysia - Bertam
Malaysia - Bertam (WI 75%) Bertam field 2015 Net Production 5,480 boepd Bertam-3 A-15 Strong facilities performance – 98% uptime Initially planned drilling programme complete A15 infill well drilling Q2 0 KM 1 Good reservoir performance – decline slower than expected 2015 Bertam production 10,000 Co
Slide 21: Corporate Overview: Reserves and Resources
Corporate Overview Reserves and Resources Capital Market Day, 3 February 2016 Lundin Petroleum 21
Slide 22: 2P Reserves 31 December 2015
2P Reserves 31 December 2015 Norway 95% of total reserves Total 685.3 MMboe MMboe Netherlands, 1.9 Malaysia, 10.7 End 2014 187.5 France, 19.1 Aquitaine, 2.6 Paris Basin, 16.5 Edvard Grieg, 102.9 - 2015 Production -11.8 - Asset Sales -0.8 Alvheim, 17.9 + Reserve Additions (excl. Sales/Acquisitions) +
Slide 23: 2P Reserves Changes
2P Reserves Changes Produced in 2015 Revisions Sales / Acquisitions Malaysia -3.1 Norway -7.6 +512.5 Netherlands +0.1 Indonesia -1.4 France -1.1 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 500.0 550.0 MMboe Norway: + Johan Sverdrup matured from Indonesia: Sale of assets contingent resources to reserves + Volund
Slide 24: 2P Reserves History
2P Reserves History 900 800 700 Cumulative Production 600 Malaysia 500 Norway MMboe Tunisia 400 Netherlands 300 France 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 WF12164 p03 01.16 Year End Excluding discontinued operations Lundin Petroleum 24
Slide 25: Contingent Resources 31 December 2015
Contingent Resources 31 December 2015 End 2015 Total 386 MMboe Norway other, 25.5 Greater Alvheim Area, 1.8 Luno II North discovery 12 – 26 MMboe gross Luno II North, 8.9 Contingent Resources Luno II, 25.7 Russia, 110.1 Rolvsnes oil discovery 3 – 16 MMboe gross Gohta, 51.3 Contingent Resources. Incl
Slide 26: Contingent Resources Changes
Contingent Resources Changes Year end 2014 to Year end 2015 Luno II Rolvsnes Singa Disposition SE Tor SB303 -20 -15 -10 -5 0 5 10 15 MMboe Revision net to Lundin Norway: - Luno II and Rolvsnes discoveries - Disposition of SE Tor Malaysia: - Disposition of Singa WF12164 p05 01.16 - Farm down SB303 Lu
Slide 27: 2016 Remaining Prospective Resources
2016 Remaining Prospective Resources 2016 net unrisked prospective resources 400 Norway SE Asia Unrisked 300 Million boe Target Unrisked 200 ~320 MMboe1 100 0 n an di en se icu lig id Fo Ne Ma Fil 2016 net risked prospective resources 100 Norway SE Asia 75 Risked Million boe Target Risked 50 ~87 MMb
Slide 28: Drilling Schedule 2016
Drilling Schedule 2016 Well LUPE 2016 Country Licence - Prospect type Operator WI % NUPR(1) CoGS(2) NRPR(3) Q1 Q2 Q3 Q4 1 Norway PL544 - Fosen exp Lundin 40.00 77 22% 17 Ongoing 2 Norway PL609 - Alta-3 test app Lundin 40.00 – – – 3 Norway PL609 - Neiden re-entry exp Lundin 40.00 82 30% 25 4 Norway P
Slide 29: Expenditure and 2016 Work Programme
Corporate Overview Expenditure and 2016 Work Programme Capital Market Day, 3 February 2016 Lundin Petroleum 29
Slide 30: Capital Expenditure 2015/2016
2015/2016 Capital Expenditure 2015 Guidance vs Actual 2016 Guidance 16% reduction on guidance 26% reduction on 2015 capital expenditure 2015 2016 2,000 2,000 2,000 Exploration 1,800 1,800 1,800 Appraisal 1,600 1,600 1,600 Development -16% 1,400 1,400 1,400 Million USD Million USD 1,200 -26% 1,200 1,
Slide 31: 2015 Development Activity
Lundin Petroleum 2015 Development: 1,060 MUSD 2015 Development Activity Continental Europe, 20 Malaysia, 160 Norway, 880 Norway - USD 880 million Edvard Grieg - Topside Construction and Installation - Pipeline Installation - Development Drilling Johan Sverdrup - Subsea drilling template - Jacket & T
Slide 32: CAPEX 2015 Guidance vs Actual
CAPEX 2015 Guidance vs Actual Capex - 2015 Guidance vs Actual 1,300 1,300 1,250 1,250 1,200 1,200 Million USD Million USD 1,150 1,150 1,100 1,100 1,050 1,050 1,000 1,000 0 0 2015 Edvard Grieg Brynhild Johan Other Bertam Other 2015 Guidance Field & Sverdrup Norway International Actual WF12152 p01 12.
Slide 33: 2016 Development Activity
2016 Budget: 936 MUSD Lundin Petroleum 2016 Development Activity Continental Europe, 5 Malaysia, 28 Norway, 903 Norway - USD 903 million Alvheim Hub - USD 55 million - Development Drilling Edvard Grieg - USD 130 million - Development Drilling Johan Sverdrup - USD 705 million - Phase 1 Construction w
Slide 34: Exploration & Appraisal Activity 2016
2016 Budget 145 MUSD 2016 Exploration & Appraisal Activity Other, 4 Norway, 115 Malaysia, 26 Norway Exploration - 1 re-entry & 1 well Barents Sea - 1 well Utsira High Appraisal Johan Sverdrup Netherlands - Phase 2 Concept Selection - 2 onshore exploration wells Luno II - Development Feasibility Stud
Slide 35: Financials and Funding
Corporate Overview Financials and Funding Capital Market Day, 3 February 2016 Lundin Petroleum 35
Slide 36: Funding Status and Guidance: Cash Flow Generation
Funding Status and Guidance Cash Flow Generation Production set to double in 2016 Low cash operating costs (<10 USD/boe); no cash taxes in Norway Strong cash flow generation down to very low oil prices WF12168 p1 01.16 Lundin Petroleum 36
Slide 37: 2016 Forecast Netback
2016 Forecast Netback (USD/boe) Forecast Actual 2016 2015 Average Brent oil price USD/boe 30.00 40.00 50.00 52.39 Revenue 31.70 40.65 49.55 48.28 Cost of operations - Base -6.60 -6.60 -6.60 -8.71 - Projects -1.00 -1.00 -1.00 -1.56 Tariff & transportation -1.50 -1.50 -1.50 -1.00 Production taxes -0.1
Slide 38: 2016 Forecast Cost of Operations
2016 Forecast Cost of Operations (including projects) 2016 Forecast 2015 Actual Malaysia, 15% 40 40 Netherlands, 6% Norway, 68% France, 11% 30 30 24.00 USD/boe USD/boe 20 (1) 20 20.63 20.25 (FPSO sale) 18.40 (1) 9.10 (FPSO sale) 14.78 10 10 10.27 9.67 8.60 7.60 7.45 6.82 6.40 (2) 0.0 WF12061 p23 01.
Slide 39: Cost of Operations – Quarterly
2016 Forecast Cost of Operations – Quarterly Including Projects (FPSO sale) Base (FPSO sale) Including Projects Base USD/boe USD/boe 11 11 Forecast 2016 Including Projects 10 10 (FPSO sale) USD 9.10/boe Base Forecast 2016 9 9 (FPSO sale) USD 8.10/boe Forecast 2016 8 8 Including Projects USD 7.60/boe
Slide 40: 2016 Forecast Depletion
2016 Forecast Depletion Malaysia, 14% 2016 Forecast Netherlands, 2% 2015 Actual France, 3% Norway, 81% 35 35 33.20 30 30 25 25 21.88 20 20 20.63 USD/boe USD/boe 19.40 17.85 17.60 17.55 16.79 15 15 15.72 15.53 12.45 10 10 5 5 0.00 WF12168 p5 01.16 0 0 Total (1) Norway France Netherlands Indonesia Mal
Slide 41: 2016 Forecast Tax
2016 Forecast Tax Forecast 2016 Average Brent oil price USD/boe 30.00 40.00 50.00 Current tax credit -3.65 -3.65 -0.50 Deferred tax credit/charge -0.70 5.25 8.00 Total -4.35 1.60 7.50 WF12061 p10 07.15 Lundin Petroleum 41
Slide 42: Norway Tax Value
Norway Tax Value ~ USD 2 billion(1) of tax assets in Norway Undiscounted Norwegian Tax Value from historic capex spend as at 1 Jan 2016 (MNOK) 18,000 925 16,000 16,776 (1) 3,408 14,000 257 12,000 1,217 7,453 Million NOK 10,000 8,000 6,000 4,000 3,516 2,000 0 WF12168 p7 01.16 CT Historic Capex SPT Hi
Slide 43: 2016 Forecast Profit Netback
2016 Forecast Profit Netback (USD/boe) Forecast 2016 Average Brent oil price USD/boe 30.00 40.00 50.00 Cash Margin 21.30 30.25 39.15 Depletion/Depreciation -18.95 -18.95 -18.95 G&A -1.15 -1.15 -1.15 Financial items, net -8.60 -8.50 -8.40 Profit/loss Before Tax -7.40 1.65 10.65 Tax 4.35 -1.60 -7.50 P
Slide 44: 2016 Forecast EBITDA Netback
2016 Forecast EBITDA Netback (USD/boe) Forecast 2016 Average Brent oil price USD/boe 30.00 40.00 50.00 Cash Margin Netback 21.30 30.25 39.15 General & Administration (1) -1.00 -1.00 -1.00 EBITDA Netback 20.30 29.25 38.15 WF12061 p26 01.16 (1) Adjusted for depreciation Lundin Petroleum 44
Slide 45: 2016 Forecast Operating Cash Flow Netback
2016 Forecast Operating Cash Flow Netback (USD/boe) Forecast 2016 Average Brent oil price USD/boe 30.00 40.00 50.00 Cash Margin Netback 21.30 30.25 39.15 Cash Taxes 3.65 3.65 0.50 Operating Cash Flow Netback 24.95 33.90 39.65 Strong cash flow generation down to USD 30/boe WF12061 p27 01.16 Lundin Pe
Slide 46: Liquidity and Balance Sheet
Funding Status and Guidance Liquidity and Balance Sheet Robust balance sheet with strong access to liquidity Reserve based lending remains core to our funding: USD 5.0 billion accordion signed Exploration refund facility Secured against 2015 cash tax credit receivable December 2016: MUSD 250 facilit
Slide 47: Year End 2015 Liquidity – RBL
Year End 2015 Liquidity – RBL New 7 year facility signed Supported by 23 international banks USD 5.0 billion accordion facility Johan Sverdrup included as a borrowing base asset Initial commitments > USD 4.3 billion Optionality to bring in additional commitments Designed to fund Johan Sverdrup throu
Slide 48: 2016 Funding Liquidity
2016 Funding Liquidity MUSD 6,000 200 700 5,000 250 4,300 4,000 3,858 3,786 72 760 million 1.65 billion (committed) (committed 3,000 plus optional) Available Liquidity Headroom 2,000 1,000 0 RBL ERF RBL Bertam RBL Cash Net Debt Accordion FPSO sale 31/12 Sources of Liquidity WF12168 p13 01.16 Lundin
Slide 49: 2016 Forecast Funding & Liquidity
2016 Forecast Funding & Liquidity (USD/boe) Forecast 2016 Forecast 2016 Brent oil price (USD) 30.00 40.00 50.00 Operating Cash Flow Netback 24.95 33.90 39.65 Cash, General & Administrative / Financial Items -8.70 -8.55 -8.40 Cash Flow Available for Investment 16.25 25.35 31.25 MUSD Development Capex
Slide 50: Liquidity and Balance Sheet
Funding Status and Guidance Liquidity and Balance Sheet Strong cash flow generation at very low prices Enhanced liquidity position with 760 MUSD of committed liquidity headroom Options to increase by a further 900 MUSD through RBL accordion and FPSO sale Full optionality to utilise additional debt i
Slide 51: Norway Overview
Norway Overview Capital Market Day, 3 February 2016 Lundin Petroleum 51
Slide 52: Norway Strategy
Barents Sea Norway Strategy Loppa High Southern Barents Sea Area Focus on organic growth 2 key areas for exploration Utsira High Norwegian Sea Southern Barents Sea 3 key areas for development/production Alvheim Area: 3 fields Norway Utsira High: E. Grieg, Luno II, J. Sverdrup North Sea Loppa High: A
Slide 53: Norway: An Organic Growth Success Story
Norway An Organic Growth Success Story x3 Production growth since start of 2015 6 0.7 Fields currently on production. Johan Sverdrup 856 under development USD per barrel finding cost 81 post tax 2003–2015 Million barrels of reserves and resources at end 2015 Exploration & Appraisal wells WF12160 p09
Slide 54: Utsira High Resources and Upside Potential
Norway Utsira High Resources and Upside Potential Lundin Petroleum major operated acreage position ~2.7 billion boe of gross reserves under development – 3 PDO approved Edvard Grieg, Ivar Aasen and Johan Sverdrup 44 MMboe of net contingent resources – high margin PL779 PL501 barrels to existing infr
Slide 55: Southern Barents Sea
Southern Barents Sea Area Norway Southern Barents Sea Norway Southern Barents Sea Lundin Petroleum licences Underexplored ~ 100 wells Operator Oil Partner Gas Prospect Licenced Area 5 recent oil discoveries 23rd Round Blocks + 2 gas discoveries Industry Broadband 3D Seismic Hoop Area Southeast Baren
Slide 56: Norway Organisational Capability
Norway Gross discovered resources as operator, source NPD Organisational Capability Others 28% Lundin Petroleum 46% (2) Exploration Statoil 26% Exploration wells 50 Drilling 35% commercial success 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Edvard Grieg Development Development Edvard Grieg Uptime
Slide 57: Norway – Development Projects
Norway – Development Projects Capital Market Day, 3 February 2016 Lundin Petroleum 57
Slide 58: Norway Development Projects
Southern Barents Sea Area Norway (Alta/Gohta) Development Projects Norway Ongoing Norwegian developments Utsira High Area Edvard Grieg (Lundin 50% operator) Ivar Aasen Unit (Lundin 1.385%) Johan Sverdrup (Lundin 22.60%) Appraisal projects: Luno II (Lundin 50.0%, operator) Alta/Gohta (Lundin 40.0%, o
Slide 59: Edvard Grieg Development
Edvard Grieg Schematic Norway Ivar Aasen Platform Edvard Grieg Development Edvard Grieg Platform Gas Export to SAGE Oil Export to Grane Lundin interest: 50% (operator) OMV 20%, Wintershall 15%, Statoil 15% Ivar Aasen 2P reserves: 206 MMboe gross Luno South Plateau production: 100,000 boepd gross Edv
Slide 60: Edvard Grieg Project Update
Edvard Grieg Project Update Edvard Grieg CAPEX1 Latest Historic 2016 Future 26.0 PDO Facilities Drilling Pipelines Other 26.2 Project delivered on schedule and on budget 0 5 10 15 20 25 30 Gross (billion NOK) 1 Nominal 3 wells online, drilling performance on schedule Project is 96% complete, project
Slide 61: Edvard Grieg Production Performance
Edvard Grieg Production Performance Edvard Grieg gross production (boepd) Facility capacity: 100,000 boepd1 Production 100,000 OP3 online Gross Production [boepd] Strong initial facilities and reservoir performance 80,000 OP2 online Facilities uptime outperforming – 95% to date 60,000 Anticipated to
Slide 62: Edvard Grieg Positive Appraisal and Development Drilling Results
Edvard Grieg Positive Appraisal and Development Drilling Results Drilled Producer Planned Water injectors Planned Producer Tellus 16/1-15&15A - 7 new wells since the PDO 16/1-18 appraisal (2014) Proved a back basin in the eastern part of the field 16/1-23SE appraisal (2015) (A02) WI-1 OP1 (A11AT2 )
Slide 63: Edvard Grieg First Three Producers
Edvard Grieg First Three Producers OP1 (A11AT2 ) All three wells are high rate producers with petrophysical properties in line with, or better than, expectation Reservoir pressure decline trends more favorable than expected OP2 (A06) OP3 (A10A) WF12165 p06 01.16 Lundin Petroleum 63
Slide 64: Edvard Grieg 2016 Drilling Programme
Edvard Grieg 2016 Drilling Programme (A02) WI-1 Injectors WI-1 currently drilling (A01) WI-2 OP1 (A11AT2 ) WI-2 and WI-3 to be drilled in 2016 Production capacity will be constrained while OP4 (A20) water injection capacity builds 16/1-13 16/1-10 Oil producers 4th producer (OP4) is planned as high O
Slide 65: Ivar Aasen Project
Norway - Southern Utsira High Norway 0024 0025 0 KM 10 PL779 Ivar Aasen PL501 Lundin Petroleum Operator Ivar Aasen Project Lundin Petroleum Partner PL673 PL265 Johan Sverdrup PL338 Apollo Johan Sverdrup Unit PL338BS unitisation Lundin working interest 1.385% Edvard Grieg PL674 PL338C PL501B Ivar Aas
Slide 66: Johan Sverdrup Development
Norway Johan Sverdrup Development PDO Submitted – Phase I PDO Approval – Phase I PDO Submission – Phase II First Oil – Phase I First Oil – Phase II Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 2020 2021 2022 to Mongstad to Kårstø Phase 1 oil terminal gas termi
Slide 67: Johan Sverdrup Key Points
Norway Johan Sverdrup Key Points Largest Phase 1 development on the NCS Major importance to all stakeholders This project attracts the A-team from all companies and suppliers involved Up to 40% of NCS oil production at plateau PDO approved and full field reserves are booked 513.2 million boe (2P net
Slide 68: Johan Sverdrup Development
Norway Johan Sverdrup core Johan Sverdrup Development Sheet-like sand with large-scale lateral continuity (200 km2) Extremely high permeability – average 21 Darcy to >50 Darcy Connectivity over the entire structure High recovery factor and high well rates Johan Sverdrup Unit Norway Working Interest
Slide 69: Johan Sverdrup – Phase 1 Development
Norway Johan Sverdrup – Phase 1 Development Project is progressing to schedule: PDO approved by MPE in August 2015 Major contracts awarded Pre-drilling to commence Q1 2016 Production start-up Q4 2019 Costs are coming down: Phase 1 gross CAPEX reduced from NOK 123 billion to NOK 108.5 billion1 (12% s
Slide 70: Johan Sverdrup – Full field (Phase 2) Development
Norway Johan Sverdrup – Full field (Phase 2) Development Phase 2 - Final Concept Select Q4 2016: Full field process capacity 550–650 Mbopd Production start-up 2022 Full field CAPEX significantly reduced to NOK 160–190 billion (including Phase 1)1 Due to market conditions and optimised facilities sco
Slide 71: Utsira High - Luno II Discovery
Top Basement (base reservoir) map Norway Utsira High - Luno II Discovery D PL359 Luno II (Lundin 50% operated) Luno II North oil discovery well 16/4-9S drilled in 2015 16/4-6S 16/4-9S Well encountered a 23 metre oil column in a separate C segment to the Luno II discovery and tested at 1,000 bopd Lun
Slide 72: Southern Barents Sea: An Emerging Major Production Area
Southern Barents Sea Area Norway - Southern Barents Sea An Emerging Major Production Area Norway Johan Castberg discoveries 550 MMboe (1) Significant discovered resources Pipeline of developments Alta & Gohta discoveries Snøhvit online since 2007 216 - 584 MMboe (2) Goliat start-up 2016 Johan Castbe
Slide 73: Norway – Exploration
Norway – Exploration Capital Market Day, 3 February 2016 Lundin Petroleum 73
Slide 74: Norway Strategy
Barents Sea Norway Strategy Loppa High Southern Barents Sea Area Focus on organic growth Inverted highs 2 key areas for exploration Norwegian Sea Utsira High Southern Barents Sea Application of latest technology Norway North Sea Alvheim Area Utsira High Area WF12160 p04 01.16 UK Lundin Petroleum 74
Slide 75: Finding Cost and Value Creation
Norway Finding Cost and Value Creation Lundin Petroleum most successful exploration company in Norway during the last decade Continue to pursue value creation through exploration – organic growth Norway Big Fields tend to get Bigger Finding Costs (USD/boe) (1) Factor Change in Total Oil Reserves sin
Slide 76: Lundin Petroleum - The Most Successful Explorer
Norway Lundin Petroleum - The Most Successful Explorer Licence Acreage History Largest resources discovered on NCS 2007–2015 (1) Licence acreage 25,000 BG ENI Repsol Cumulative km2 20,000 Esso Suncor Centrica APA 2015 VNG 15,000 OMV Shell 10,000 DEA 5,000 Det norske Lundin 0 Petroleum Total 2003 200
Slide 77: Utsira High Area Evolution 2004-2015
Norway - Utsira High Area Evolution 2004-2015 Lundin Petroleum Operator Lundin Petroleum Partner Oil Gas Prospect Lead NGL 2004 - 2007 2008 - 2010 2011 - 2015 024 025 024 PL546 (2010) 025 PL625 024 (2012) 025 I. Aasen Unit PL674 Ivar Aasen PL546 (001b,242,338BS,457) PL625 Discovery 2008 PL501 PL501
Slide 78: Utsira High Exploration
0024 0025 0 KM 10 Norway - Utsira High PL779 Lundin Petroleum Operator PL501 Ivar Aasen Lundin Petroleum Partner Exploration Prospect/lead PL673 Johan Sverdrup Unit Apollo PL338 Edvard Grieg Johan Sverdrup Edvard Grieg South Multiple drill ready prospects PL338C Rolvsnes discovery 16/1-25 PL265 PL67
Slide 79: Southern Barents Sea Resources
Norway - Southern Barents Sea Net Acreage (km2) Southern Barents Sea Resources 6,000 4,000 Yet-to-find resources - Norway 2,000 North Sea: 5.0 bn boe Norwegian Sea: 5.2 bn boe 0 Barents Sea: 8.0 bn boe in nd Lu Recent southern Barents Sea discoveries Johan Castberg: 550 MMboe Sentralbanken High Alta
Slide 80: Loppa High Exploration & Appraisal
Loppa High Area Norway – Southern Barents Sea Loppa High Exploration & Appraisal Norway Lundin Petroleum licences Operator Partner 609 Børselv Oil Gas Kramsnø Prospect Gohta/Alta discoveries opens up the area for significant new discoveries Neiden Prospect Johan Castberg Drivis Skavl Barents Alta ap
Slide 81: Loppa High Existing Discoveries
Norway – Southern Barents Sea Loppa High Existing Discoveries Alta total resources: 125 – 400 MMboe Alta Discovery: 125–400 MMboe (1) Development feasibility study ongoing PL609 (Lundin 40% operated) Discovery well (2014): 57m gross HC column – tested 3,300 bopd First appraisal Alta -2 (2015): Teste
Slide 82: Alta Appraisal
Norway - Southern Barents Sea Alta Appraisal Significant discovery – Alta wells 1, 2 and 3 in communication Alta Field Alta saddle app. well Alta-3 re-entry and test in 2016 PL609 OWC Further appraisal drilling in 2017 GOC Alta-1 Cross section over Alta Alta-2 Alta-1 Alta-3 Alta-2 Alta-3 Re-entry Vo
Slide 83: Neiden Prospect – Re-entry 2016
Børselv Tana Norway - Southern Barents Sea Neiden Prospect – Re-entry 2016 PL609 (Lundin 40% operated) Neiden Carbonate prospect on trend with Alta/ Gohta Alta Updip of Obelix well with oil shows in carbonate reservoirs Gross unrisked prospective resources 204 MMboe, CoS 30% During 2015 drilled to j
Slide 84: Filicudi Prospect – 2016 Well
Norway - Southern Barents Sea Filicudi Prospect – 2016 Well PL533 (Lundin 35% operated) Multiple prospects on trend with large Johan Castberg discovery “Double flat spot” on seismic reduces risk – similar response at Johan Castberg Gross unrisked prospective resources 258 MMboe, CoS 25% Prospect tre
Slide 85: 23rd Licence Round
Norway - Southern Barents Sea 23rd Licence Round Lundin Petroleum licences 23rd Round Blocks Operator Industry Broadband 3D Seismic Partner Haapet High Sentralbanken High New acreage not previously open to exploration Veslekari Dome Svalis Dome Fedynsky High The largest structures seen in Nordkapp B
Slide 86: Norway Exploration Summary
Norway Exploration Summary Leading acreage position Utsira High Loppa High Continuing to build portfolio Licence rounds Business development Continuing programme focussed on core areas WF12160 p03 01.16 Lundin Petroleum 86
Slide 87: Malaysia Overview
Malaysia Overview Capital Market Day, 3 February 2016 Lundin Petroleum 87
Slide 88: Malaysia 2016 Block Summary
Malaysia 2016 Block Summary Core positions in Peninsular Malaysia and Sabah Total acreage is 28,000 km2, second largest after Petronas 14.3 MMboe gross 2P reserves 96 MMboe gross contingent resources Broad strategic farm-down to Dyas - Strong technical non-operated partner - Spread risk in high equi
Slide 89: Bertam Overview
Malaysia Bertam Development Facilities Bertam Overview PM307 - Lundin Petroleum 75% (operator), Petronas Carigali 25% 2P gross ultimate recoverable reserves: 16.4 MMboe 14.3 MMboe remaining as at 31 Dec 2015 Bertam Location Map 0 KM 20 First oil: 5 April 2015 PM319 PM307 Sotong Field Project deliver
Slide 90: Bertam Field Reservoir Development
Malaysia Bertam Field Reservoir Development PDO development drilling programme completed Field Extension Bertam-3 appraisal well Bertam-3 appraisal well identified eastern extension of the field A15 infill development well to be drilled Q2 A15 infill well Infill drilling opportunities being reviewed
Slide 91: Malaysia Organic Growth Potential
Malaysia Organic Growth Potential Low costs - low commitment opportunities PM328 Potentially material new channel plays PM328 SB307/308 Maligan 110 MMbbls(1) - currently drilling PM307 New high impact plays identified in Miocene Sarawak channel systems Malaysia Negotiating new high Natuna Sea Malays
Slide 92: Other Assets
Other Assets Capital Market Day, 3 February 2016 Lundin Petroleum 92
Slide 93: Overview France & Netherlands
Overview France & Netherlands " Long life steady production and cash flow Low capital requirement Offshore Netherlands France Netherlands Onshore Hydrocarbon Type Oil Gas 2015 Production Net, boepd 2,730 1,746 " 2P Reserves Net , MMboe (1) 19.1 2.0 " Best Estimates Contingent Paris Basin Resources N
Slide 94: France: Steady Value Creation
France Steady Value Creation Aquitaine Basin End Year Contingent Resources Paris Basin 14.0 2015 Production: 2,730 boepd 12.0 10.0 2P Reserves: 19.1 MMboe 8.0 MMboe 6.0 Contingent Resources: 13.1 MMboe 4.0 2.0 Operating cash flow MUSD 27 in 2015 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 95: Netherlands: Mature Gas Production
Netherlands Mature Gas Production Cumulative Production Netherlands 2P reserves history (MMboe) Reserves 16 2015 Production: 1,746 boepd 14 12 2P Reserves: 2.0 MMboe 10 MMboe 8 Operating cash flow MUSD 13 in 2015 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Netherlan
Slide 96: Conclusion
Conclusion Capital Market Day, 3 February 2016 Lundin Petroleum 96
Slide 97: Key Messages
Lundin Petroleum Key Messages Europe’s largest independent E&P company Consistent sustainable organic growth strategy going forward Strong production growth with low unit operating costs Strong balance sheet and liquidity position Strong value creation track record Continued strong focus on cost dis
Slide 98: Disclaimer
Disclaimer This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (with
Slide 99: Thank You
Thank You www.lundin-petroleum.com