Newmed Energy Limited Partnership · TASE:NWMD
Newmed Energy Limited Partnership — Delek Drilling – Limited Partnership — JP Morgan 2018 Global Emerging Markets Corporate Conference
22 slides from Newmed Energy Limited Partnership's conference presentation, Feb 25, 2018
Slide 1: Energizing The Eastern Med
Energizing The Eastern Med February 2018 Delek Drilling – Energizing The Eastern Med
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Delek Drilling – Limited Partnership (the “Partnership”), and is given to you only for the provision of concise information for the sake of convenience, and may not be copied or distributed to any other person. This presentation does not purport to be com
Slide 3: Delek Drilling – East Mediterranean E&P Operation
Delek Drilling – East Mediterranean E&P Operation Transforming the Levant Basin into a Natural Gas Export Hub Top Tel-Aviv- 35 index listed LP with a market cap of c. $3.2 billion World class E&P assets portfolio, from exploration through development and producing assets Senior partner in all major
Slide 4: Israeli and Cypriot EEZ – Over 42 TCF Discovered
Israeli and Cypriot EEZ – Over 42 TCF Discovered 2012 2013 2011 1.2 tcf 1.8 tcf 4.5 tcf 2009 11.2 tcf 2 2010 2009 21.4 tcf 2011 0.5 tcf 0.1 tcf 1999 0.1 tcf 1 2000 1 tcf 1 Resources: 2P + 2C + Prospective (2U), based on NSAI reports. ¹ Estimated ultimate recoverable; Now almost depleted and classifi
Slide 5: Government 'Gas Framework' – Regulatory Certainty
Government ‘Gas Framework’–Regulatory Certainty Resolutions regards three main topics: Structural Changes Pricing & Contracts Development ▪ Tanin and Karish: Delek and ▪ No change to existing contracts ▪ Time table and milestones Noble will sell their entire for investments in ▪ Defined pricing alte
Slide 6: Tamar – World Class Deepwater Project
Tamar – World Class Deepwater Project Ownership Delek Drilling 22%, Isramco 28.7%, Dor Gas 4%, Everest 3.5%, Tamar Petroleum 9.25%, Noble Energy (operator) 32.5% 2P Reserves* 11.2 tcf (318 bcm); / 14.6 mmbbl condensate First gas End of Q1 2013 Development budget: $3.1 Billion (100%) Overall Tamar co
Slide 7: Tamar – Contracts and Sales Breakdown
Tamar – Contracts and Sales Breakdown Tamar contractual structure – low exposure to commodity risk Israel Electric IPP & Electricity Industry & Other Corp. Related TCQ : 87 bcm (~3.07 tcf) TCQ : 72 bcm (~2.54 tcf) TCQ : 8.5 bcm (0.3 tcf) + Condensate 15-17 years 15-19 years 5-8 years Pri
Slide 8: Tamar Divestment Process
Tamar Divestment Process After examining various alternatives, Delek Drilling decided to sell a 9.25% stake of its Working Interest in the project through the Capital Market A special purpose vehicle – “Tamar Petroleum” was established in order to acquire the WI Debt and equity issuances on th
Slide 9: Tamar Divestment – Recent Sell of 9.25% WI
Tamar Divestment – Recent Sell of 9.25% WI Pre IPO Structure Post IPO Structure Delek Drilling Delek Drilling 31.2% WI 22% WI 9.25%% WI Tamar Tamar Field Tamar Field Petroleum 100% Delek 100% Delek Tamar Bond Tamar Bond Bond Debt $650mm LTD. LTD. $1.6 B $1.28 B Senior Secured Note Senior Secured Not
Slide 10: Leviathan – A Regional Energy Game Changer
Leviathan – A Regional Energy Game Changer Ownership Delek Drilling 45.3%, Ratio 15%, Noble Energy (operator) 39.7% 2P+2C Resources* 21.9 tcf (613 bcm), 39.4 mmbbl condensate Estimated First Gas 4Q 2019 Production Capacity (to be built in 2 stages) 1.2 bcf/d (~12 bcm/y) – for Domestic, Jordan and PA
Slide 11: Leviathan – Modular Development
Leviathan – Modular Development Phase 1A of Leviathan development sanctioned, future cost efficient expansion Capacity of 1.2 bcf/d (approx. 438 bcf/y) Capacity of 2.1 bcf/d (approx. 766 bcf/y) Development plan for phase 1A includes construction of an offshore fixed platform with a 1.2 bcf/d (appr
Slide 12: Project Development on Time on Budget
Project Development on Time on Budget Phase I development progressing- ~35% complete Fabrication has started on the platform topsides, jacket, and the subsea equipment All building permits received or submitted More than 500 people currently working on the Project. 1500people by the end of 2
Slide 13: Leviathan Drilling Campaign
Leviathan Drilling Campaign Leviathan Phase 1-A consist of 4 producing wells Ensco DS-7 The drilling & Completion works was split into two Drilling ▪ All 4 wells had been drilled to depth by the Atwood Advantage drilling rig Leviathan production wells Completion ▪ Leviathan partners ended th
Slide 14: Cyprus – Aphrodite Field
Cyprus – Aphrodite Field Ownership Delek Drilling 15%, Avner 15%, Shell 35%, Noble Energy (operator) 15% Discovered Contingent Resources (2C) * 3.5 tcf (100 bcm) Additional Prospective Resources (P50) 1.0 tcf (29 bcm) Location 168 km south of Limassol 1,700m water depth Target markets Cyprus - Domes
Slide 15: The Levant Basin Geology
The Levant Basin Geology Leviathan Deep Delek Drilling – Energizing The Eastern Med 15
Slide 16: Growing Regional Markets Demand
Growing Regional Markets Demand 16
Slide 17: Domestic Long Term Gas Demand Forecast Growth
Domestic Long Term Gas Demand Forecast Growth Gas Demand Forecast (BCM) Electricity generated by gas is expected 40.0 to triple by 2040 and will represent 85% of total electricity generated 35.0 according to Ministry of Energy and 30.0 Water 25.0 Electricity generation by fuel type (%) Gas Coal Oi
Slide 18: Egypt – Supply Demand Imbalance
Egypt – Supply Demand Imbalance ▪ Significant consumption of over 50 bcm/y, and Egyptian Domestic Supply-Demand Balance 90 increasing by Approx. 8% year on year +20 BCM of LNG facilities* 80 ▪ Additional gas is required for two existing LNG 70 facilities, consuming approx. 17 to 20 bcm/y 60 bcm 50 ▪
Slide 19: GSPA's For the Sale of Gas to Egypt
GSPA’s For the Sale of Gas to Egypt Leviathan : Annual supply of 3.5 BCM/y (with TOP level agreed) Total contract quantities : 32 BCM Estimated revenue income: $7.5 Billion Tamar : Contract price based on a Annual supply begin on an Interruptible base with Delek and Noble Brent linked option
Slide 20: Fast Developing Region
Fast Developing Region Israel – Domestic market Jordan - NEPCO Palestinian Authority Egypt – Domestic market Egypt – LNG Facilities Turkey Delek Drilling – Energizing The Eastern Med 20
Slide 21: Strong Financial Position
Strong Financial Position Strong balance sheet Long-term, limited recourse-type debt based on significant revenues from the Tamar reservoir only Attractive dividend policy- 20% dividend yield in LTM High cash reserves Well-established and stable cash flow Substantial economic value of as
Slide 22: Thank You
Thank You Delek Drilling – Energizing The Eastern Med 22