Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (April 2016)
12 slides from Tullow Oil's shareholder meeting presentation, Apr 28, 2016
Slide 1: Annual General Meeting
2016 Annual General Meeting Tullow Oil plc ANNUAL GENERAL MEETING 28 April 2016
Slide 2: Disclaimer
2016 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: Early actions taken to position Tullow for future growth
2016 Annual General Meeting Early actions taken to position Tullow for future growth Decisive action taken Financial flexibility Fit for the future Re-set to deal with Step change for Tullow Portfolio with major low oil prices: with TEN first oil: growth potential: Moved early and decisively; Increa
Slide 4: 2015 Full Year Results summary
2016 Annual General Meeting 2015 Full Year Results summary 2015 ($m) 2014 ($m) Sales revenue 1,607 2,213 Gross profit 591 1,096 Administrative expenses (194) (192) Restructuring costs (41) - Loss on disposal (57) (482) Goodwill impairment (54) (133) Exploration costs written off 1 (749) 2 (1,657) Im
Slide 5: Reducing capex and prioritising de-leveraging
2016 Annual General Meeting Reducing capex and prioritising de-leveraging Major reductions in Group Capex • 2016 capex guidance revised down to c.$1.0bn; work ongoing to reduce capex to $900m • Potential Group capex of c.$300m from 2017 with incremental investment options Funding supported by qualit
Slide 6: Material low-cost West Africa oil production
2016 Annual General Meeting Material low-cost West Africa oil production Strong 2015 West Africa oil production: 66,600 bopd up 1,300 bopd on 2014 Gabon Eq Guinea 66,600 Cote d'Ivoire bopd Congo (Brazz) Mauritania Ghana 2017 West Africa oil production growing to around: 100,000 bopd with TEN on stre
Slide 7: Jubilee: long-term asset with flexible investment opportunities
2016 Annual General Meeting Jubilee: long-term asset with flexible investment opportunities Strong Jubilee performance in 2015 • Average gross production: 103,000 bopd FPSO turret bearing issue • Investigation ongoing and solutions being engineered • New offtake procedures being implemented • Produc
Slide 8: TEN on schedule to deliver first oil in July/August 2016
2016 Annual General Meeting TEN on schedule to deliver first oil in July/August 2016 Project over 90% complete • FPSO conversion complete - FPSO sailed from Singapore 23 Jan 16; “zero” carry over - Arrived Ghana early March; moored by mid-March - Ongoing commissioning and connection • Subsea Fabrica
Slide 9: East Africa: Continued exploration and development decisions
2016 Annual General Meeting East Africa: Continued exploration and development decisions Kenya exploration & appraisal • South Lokichar appraisal success continued • Potential to increase most likely recoverable resources of up to 750m barrels • Potential upside of 1 bn barrels in South Lokichar Bas
Slide 10: New Ventures: High-grading our exploration portfolio
2016 Annual General Meeting New Ventures: High-grading our exploration portfolio Accessing acreage to build & rejuvenate portfolio • Focus on low-cost material oil plays in Africa & Latin America • Entry with partners for collaboration, risk-sharing & cost-sharing • Seeking better terms & extensions
Slide 11: Conclusions
2016 Annual General Meeting Conclusions Business equipped for the challenging environment • Decisive action taken to re-set the business and this process continues • Cut capex, costs, headcount and dividend • 2016 marks step change with first oil from the TEN field in July/August • Free cash-flow ge
Slide 12: Tullow Oil plc
2016 Annual General Meeting 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: ir@tullowoil.com Web: www.tullowoil.com