Petrofac Limited · OTC:POFCY
Petrofac — Investor Presentation (June 2007)
24 slides from Petrofac's investor presentation, June 2007
Slide 1: Petrofac Energy Developments: presentation to analysts
Petrofac Energy Developments: presentation to analysts June 2007 1
Slide 2: Agenda
Agenda Name Change Petrofac Energy Developments Team Strategy Strengths Industry Context Petrofac Energy Developments Chronology Assets Future Focus Glossary 2
Slide 3: Name Change
Name Change Today, Petrofac’s Resources division changed its name to Petrofac Energy Developments Confusion about the name “Resources” Petrofac Energy Developments is active in two sectors: Upstream and Energy Infrastructure; the new name was chosen to reflect both business streams The chang
Slide 4: Petrofac Energy Developments Team
Petrofac Energy Developments Team Amjad Bseisu: Chief Executive Rory Edwards: VP Business Development Mike Clonts: Technical Director Jeanne-Marie de Larrazabal: Commercial Director Brock Tuppeny: Director Africa Ian Beck: Don Area Subsurface Manager Maurice Jenkins: Don Area Asset Man
Slide 5: Strategy
Strategy Petrofac Energy Developments: Invests alongside the Group’s partners in oil and gas upstream developments and energy infrastructure, offering differentiated risk/reward models Has the requisite commercial and technical capabilities for asset management and development Has unique acces
Slide 6: Strategy
Strategy Our people: entrepreneurial with technical, operational, commercial and asset management backgrounds Upstream: identifies and develops opportunities in producing or undeveloped reserves; investment areas include: − marginal field developments − late life assets and redevelopments Ener
Slide 7: Strengths
Strengths Experienced team which provides rapid evaluation of opportunities and innovative execution of projects Synergistic and unique access to engineering and operations skills Successful track record in challenging countries and developing markets Combination of oil company skills to man
Slide 8: Industry Context
Industry Context The emergence of partnership models Spiralling development costs and NOCs’ reduction of partner stakes; NOCs seeking alignment with service sector Strategic relationships give Service providers’ access to further Partnerships participation in commercial opportunities alignment arran
Slide 9: Industry Context
Industry Context Challenges Cost inflation − cost of execution − project economics Experienced people − access − cost Competition for opportunities − high prices − fewer undeveloped discoveries 9
Slide 10: Petrofac Energy Developments Chronology
Petrofac Energy Developments Chronology 2007 PED completes acquisition of interest in Chergui gas field, 2005 PED signs Tunisia and farms into interest in West permit NT/P68, Don field, UKCS Australia 2003 PED 2000 PED acquires acquires interest stake in Ohanet field in Elke asset, development and U
Slide 11: Current Assets
Current Assets Asset Country Petrofac working Partners Year interest acquired KPC Refinery Facility Kyrgyzstan 50% and Operator KyrgyzNefteGaz 1997 Ohanet gas field Algeria 10% BHP Billiton, Japan Ohanet 2000 development Oil & Gas Co, Woodside Energy Elke field development UK 100% and Operator 2003
Slide 12: KPC, Kyrgyzstan
KPC, Kyrgyzstan Acquisition date: 1997 Partners: JV with the National Oil Co KyrgyzNefteGaz Petrofac working interest: 50% interest and Operator Production and refining of crude oil and marketing and sale of products in Kyrgyzstan The only integrated oil refiner and producer in the Kyrgyz
Slide 13: Ohanet, Algeria
Ohanet, Algeria Acquisition date: 2000 Partners: Risk Services Contract (RSC) with Sonatrach. BHP Billiton (Operator), Japan Ohanet Oil & Gas Co and Woodside Energy Petrofac working interest: 10% Field description − Location: Illizi province, Algeria − Formation: Devonian and Ordovician − De
Slide 14: Ohanet Commercial Structure and Highlights
Ohanet Commercial Structure and Highlights Risk Sharing Contract terms Cash flow FE = Financial Envelope Remaining plan to drill 4 wells Total Production Project highlights Pioneered the partnership business model for Petrofac Investing in the project made the contractor Reimbursement of FE
Slide 15: Cendor, Malaysia
Cendor, Malaysia 100°E 102°E 104°E 106°E A E Acquisition date: 2004 South China Sea 8°N 8°N Malaysia-Thailand JDA Partners: Petronas Carigali, Kufpec, PetroVietnam 1 Malaysia-Vietnam CAA Petrofac working interest: 30% and Operator THAILAND B A 6°N 6°N Field description: A B D A B D C F A C −
Slide 16: Cendor Commercial Structure and Highlights
Cendor Commercial Structure and Highlights Production Sharing Contract terms R/C = revenue/cost Cash flow Oil price limit set when $25/bbl with annual escalation of 4% (Oil price limit 2007: $35.58/bbl); Royalty 10% 30% of actual difference in price realised accrues to Contractor Project budge
Slide 17: Don Southwest, UKCS
Don Southwest, UKCS Acquisition date: 2006 Partner: Valiant Petroleum Petrofac working interest: 60% and Operator Field description: − Location: NE Shetland basin − Formation: Brent sandstone − Reservoir depth: 3,400- 3,500 metres − Reserves: circa 20 MMBO gross (Petrofac P50 est.) Develop
Slide 18: West Don, UKCS
West Don, UKCS Acquisition date: 2006 Partners: Valiant Petroleum, First Oil, Stratic Energy, Nippon Petroleum Working interest: 40% of block 211/18a (contains 64.25% of field) and Operator Field description: − Location: NE Shetland basin − Formation: Brent sandstone − Reservoir depth: 3,200
Slide 19: Don Assets Commercial Structure
Don Assets Commercial Structure Project Highlights Cash flow Don fields to be developed as subsea tiebacks to an existing offshore platform; such tie-backs require modifications to be made to the Host Platform Revenue Petrofac has assembled an integrated project team, consisting of specialists w
Slide 20: Chergui, Tunisia
Chergui, Tunisia Acquisition date: 2007 Partner: Entreprise Tunisienne d’Activités Pétrolières – Tunisian state oil company Working interest: 45% and Operator Field description − Location: 30 km offshore Sfax − Formation: Upper Reineche limestones and Nummelites − Depth: 1,300 metres − Reser
Slide 21: Chergui Commercial Structure
Chergui Commercial Structure Terms Cash flow The depreciation schedule for corporate tax is 20% straight line for 5 years from commencement of production Revenue Project highlights Royalty The field was discovered in the early 1990s, and 2-12% development of the project commenced in 1999, (R fac
Slide 22: NT/P68, Australia
NT/P68, Australia Acquisition date: farmin agreement signed 2007 Partners: MEO Australia Petrofac working interest: 10% and Operator Field description − Location: offshore 300 km Darwin − Formation: Darwin formation − Depth: 3000 metres − Contingent resources: >3 TCF gas; 400 MMB condensate
Slide 23: Future Focus
Future Focus To balance the portfolio by developing Energy Infrastructure projects; various projects under consideration Execution of Don, Cendor further phases and Chergui projects Future opportunities for business development seen in North Sea (Norway), Africa, Southeast Asia 23
Slide 24: Glossary
Glossary AVO: amplitude versus offset DTI: Department of Trade & Industry FDP: field development plan FSO: floating, storage and offloading unit HSFO: heavy sulphur fuel oil LPG: liquid petroleum gas MD: measured depth MMB: million barrels MMBO: million barrels oil MMbtu: million