Tullow Oil Plc · LSE:TLW
Tullow Oil — Shareholder Meeting (May 2012)
26 slides from Tullow Oil's shareholder meeting presentation, May 16, 2012
Slide 1: Annual General Meeting
2012 Annual General Meeting Tullow Oil plc ANNUAL GENERAL MEETING 16 May 2012
Slide 2: Disclaimer
2012 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: Positioned to deliver next phase of growth
2012 Annual General Meeting Positioned to deliver next phase of growth • Record financial results • Jubilee drives up production • Uganda farm-down transforms the balance sheet • Exploration opens two major new basins in French Guiana and Kenya • Material new acreage positions acquired • Best safety
Slide 4: Introduction
2012 Annual General Meeting Tullow Oil plc – 2012 Annual General Meeting Introduction
Slide 5: Tullow's global footprint
2012 Annual General Meeting Tullow’s global footprint • 7 countries • 47 licences • 57,793 sq km acreage • 20,800 boepd • 120.8 mmboe • 6 countries • 9 countries • 18 licences • 42 licences • 151,677 sq km • 66,425 sq km acreage acreage • 57,400 boepd • 964 mmboe • 657.8 mmboe Slide 5
Slide 6: 2011 full year results summary
2012 Annual General Meeting 2011 full year results summary 2011 2010 Change Sales revenue ($m) 2,304 1,090 +111% Operating profit ($m) 1,132 262 +332% Net profit ($m) 689 90 +670% Basic earnings per share (cents) 72.5 8.1 +795% Dividend per share (pence) 12.0 6.0 +100% Capital investment1 ($m) 1,432
Slide 7: Capital expenditure of $2 billion forecast for 2012
2012 Annual General Meeting Capital expenditure of $2 billion forecast for 2012 • $1,990m for 2012 – Ghana: Jubilee remediation and phase 1A & 2012 $700m $300m $990m $1,990m TEN developments – Uganda: Lake Albert – Other Africa: WATM, Kenya – ROW: South America, Europe 2011 $701m $335m $396m $1,432m
Slide 8: 74% global E&A success ratio in 2011
2012 Annual General Meeting 74% global E&A success ratio in 2011 NETHERLANDS – 1 well 67% success rate in 2012 YTD UK – 2 wells Seismic Key 74% success rate in 2011 Cameron (44/19b-7) Foxtrot (49/30b-10) 1,660 sq km 3D PSDM Muscovite-1 (E16-5) 83% success rate in 2010 Acquisition Airborne Surv
Slide 9: Reserves and Resources
2012 Annual General Meeting Reserves and Resources 2000 Reserves and Resources 1,743 mmboe 1800 Contingent Resources 1600 • Commercial reserves - 298 mmboe Commercialised 1400 Commercial Reserves • Contingent resources - 841 mmboe − 2011 additions - 235 mmboe mmboe 1200 1000 • Uganda resources comme
Slide 10: Strong production growth in 2011
2012 Annual General Meeting Strong production growth in 2011 Group working interest production North Sea Current production Oil production boepd (x000) 100 20 Future production Africa Ghana Asia Europe 16 Other licence areas Gas production 12 80 8 Pakistan Bangladesh 4 boepd (x000) boepd (x000) 16 1
Slide 11: West & North Africa
2012 Annual General Meeting West & North Africa Strong production growth and high impact exploration West & North Africa (WNA) • 57,400 boepd production • 675.8 mmboe total reserves and resources • $1,944 million sales revenue • $768 million investment - 16 successful E&A wells - 29 Development well
Slide 12: Ghana – high levels of activity continue
2012 Annual General Meeting Ghana – high levels of activity continue Development and Production • Jubilee production drives record results • 2012 production to average of 70 - 90,000 bopd • Phase 1A development commenced in Feb 2012 • E&A activity on TEN confirms commerciality • TEN Plan of Developm
Slide 13: South & East Africa
2012 Annual General Meeting South & East Africa Significant milestones reached & new South & East basins opened Africa (SEA) • 964 mmboe total reserves and resources • $418 million investment in 2011 • 8 successful E&A wells • Multiple East African exploration campaigns in 2012 Uganda • $2.9 billion
Slide 14: Significant acreage position in East Africa
2012 Annual General Meeting Significant acreage position in East Africa East African Rift Basins • Uganda -Lake Albert Rift Basin − 1.1 billion barrels oil discovered − Accelerated appraisal in support of basin development • Kenya – Ethiopia Rift Basins − Seven rift basins analogous to the Lake Albe
Slide 15: Europe, South America & Asia
2012 Annual General Meeting Europe, South America & Asia Europe, South America Opening of a major new basin & Asia (ESAA) 2 1 & valuable cash flow 1 Netherlands EDP 2 United Kingdom EDP 3 French Guiana E • 20,800 boepd production 4 Guyana E 5 Suriname E 7 6 Bangladesh EDP • 120.8 mmboe total reserve
Slide 16: Transatlantic nature of Jubilee play proven
2012 Annual General Meeting Transatlantic nature of Jubilee play proven • Success in West Africa leads to testing of Jubilee play across the Atlantic • Zaedyus-1 makes significant discovery in French Guiana proving the Atlantic twin basin theory • Exploration campaigns now targeting prospects in Fre
Slide 17: Corporate Responsibility
2012 Annual General Meeting Tullow Oil plc – 2012 Annual General Meeting Corporate Responsibility
Slide 18: How we do business
2012 Annual General Meeting How we do business Financial performance People Governance CREATING Stakeholder SHARED Sustainable supply chain engagement PROSPERITY Local content Environment, health & safety Social enterprise Slide 18
Slide 19: Social Enterprise Investments
2012 Annual General Meeting Social Enterprise Investments • Building capacity for the oil & gas industry and associated sectors • Encouraging economic diversification to avoid overreliance on oil & gas • Contributing to a positive operating environment • Social Enterprise guidelines in place for com
Slide 20: Employing local people
2012 Annual General Meeting Employing local people Local employees Local nationals 80% Expatriates 20% Five-year growth in employees 1400 1200 1000 800 600 400 200 0 2007 2008 2009 2010 2011 Slide 20
Slide 21: Contributing to national skills base
2012 Annual General Meeting Contributing to national skills base Tullow Scholarship Scheme – Ghana, 2011 Group Well Engineering Manager with Trainee from the Well Engineering Development Programme Tullow Uganda staff at TTE, UK Slide 21
Slide 22: Supporting local business
2012 Annual General Meeting Supporting local business • Direct contribution to a country’s prosperity • Meetings and events to build pathways to enter our supply chain • Closing the Gap sessions to bring up standards • €2bn forecast capital expenditure in 2012 Slide 22
Slide 23: Conclusions
2012 Annual General Meeting Tullow Oil plc – 2012 Annual General Meeting Conclusions
Slide 24: Financially strong and opportunity rich
2012 Annual General Meeting Financially strong and opportunity rich • Jubilee production delivers record financial results • Uganda farmdown transforms the balance sheet • Exploration opens fourth major new basin • Material new acreage positions acquired • Clear vision to be the leading global explo
Slide 25: Questions and Answers
2012 Annual General Meeting Tullow Oil plc – 2012 Annual General Meeting Questions and Answers
Slide 26: Tullow Oil plc
2012 Annual General Meeting Tullow Oil plc 9 Chiswick Park 566 Chiswick High Road London, W4 5XT United Kingdom Tel: +44 (0)20 3249 9000 Follow Tullow on: Fax: +44 (0)20 3249 8801 Email: chris.perry@tullowoil.com