Equinor Asa · OSL:EQNR
Equinor Asa — Statoil — Q4 2006 Earnings Presentation
26 slides from Equinor Asa's earnings presentation, Feb 12, 2007
Slide 1: Return on average capital employed after tax (ROACE) for 12 months ended 31 December 2006
Return on average capital employed after tax (ROACE) (1) for the 12 months ended 31 December 2006 was 27.1%, compared to 27.6% for the 12 months ended 31 December 2005. The decrease in ROACE was mainly due to the increase in capital employed partly offset by higher net income. ROACE is defined as a
Slide 2: Return on average capital employed after tax (ROACE) for 12 months ended 31 December 2006
Return on average capital employed after tax (ROACE) (*) for the 12 months ended 31 December 2006 was 27.1%, compared to 27.6% for the 12 months ended 31 December 2005. The decrease in ROACE was mainly due to the increase in capital employed partly offset by higher net income. ROACE is defined as a
Slide 3: Consistent performance since the IPO
Consistent performance since the IPO
Slide 4: Sources and uses of cash
Sources and uses of cash YTD December 31, 2006
Slide 5: NOK bn
NOK bn ory Dividend 17.8 tines Net cash increase 0.3
Slide 6: High-quality portfolio for continued growth
High-quality portfolio for continued growth Type of field Peak plateau in boepd1 Production start In Amenas2 Gas 28 000 2006 Dalia Oil 27 000 ACG East Azeri Oil 20 000 Fram East Oil 9 000 Shah Deniz, phase I Gas 37 000 Ormen Lange Gas 50 000 2007 Statfjord late-life Gas 43 000 Snøhvit Gas 40 000 Vol
Slide 7: Building blocks for more cost-efficient developments
Building blocks for more cost-efficient developments Improved oil and gas recovery
Slide 8: Sanctioned
Sanctioned Handling increasing complexity Subsea field development •Challenges: –Low pressure reservoirs –Longer distances –Greater water depths •Toolbox: –Processing and compression –Well stream transport –All-electric systems
Slide 9: High pressure, high temperature (HPHT) fields Development in complexity
High pressure, high temperature (HPHT) fields Development in complexity New developments internationally • Gulf of Mexico • Venezuela New projects NCS • Valemon • Gudrun • Morvin
Slide 10: World Class on IOR
World Class on IOR . . . due to strong capabilities in reservoir management Expected ultimate recovery factors 1986 1996 2004 Current ambition Statfjord 49% 61% 68% 70% Gullfaks 46% 49% 61% 70%
Slide 11: Exploration wells 2006
Exploration wells 2006 Completed or ongoing wells: •17 wells was completed –11 Statoil operated –6 partner operated • 6 wells ongoing at year-end –2 Statoil operated –4 Partner operated •4 exploration extensions have been drilled in 2006 * Ongoing wells
Slide 12: INT Exploration drilling 2006
INT Exploration drilling 2006
Slide 13: Secured rig capacity
Secured rig capacity Added 10 rig years for the period •2008 – 2012 during 4q –Well covered for production drilling through 2q 2009 –Most of needed capacity for international operations covered through 2010 Aker newbuild
Slide 14: APA (Awards in Predefined Areas) 2006
APA (Awards in Predefined Areas) 2006 •Announcement was January 21, 2006 –192 blocks or part of blocks were announced –11 more blocks were announced compared to APA2005 •UPN LET has evaluated the announced blocks to find new opportunities, and to secure new resources to existing infrastructure •Appl
Slide 15: High activity level projects on stream in 2005, 2006 and 2007
High activity level 19 projects on stream in 2005, 2006 and 2007
Slide 16: Kristin – status 4Q
* Osbeberg Sør J-structure, Oseberg western flank and Oseberg delta Kristin – status 4Q •Completed new well January 28th 2007 –8 out 12 wells completed •Limitations on pressure depletion gives restrictions on production until all wells are completed –New schedule for plateau production expected summ
Slide 17: Accelerated international production growth
Accelerated international production growth
Slide 18: International production
International production mboepd 300 asp 240* 28% annual 200 growth 20% 150 annual growth iat 100 67 50 2001 2004 2007 Target * Based on new oil price assumption of USD 60/bbI
Slide 19: Strong production growth in Angola
Strong production growth in Angola •Current entitlement production above 70,000 boepd •Several developments in progress •Continued exploration success •13.33% ownership in blocks 15, 17 and 31
Slide 20: Building a strong position in Algeria
Building a strong position in Algeria •In Salah –Algeria’s third largest gas development –Production started July 2004 •In Amenas –Algeria’s fourth largest gas development –Production started June 2006 •Hassi Mouina - exploration licence –Drilling started November 2006 •Cooperation with Sonatrach –L
Slide 21: Strengthening the Gulf of Mexico portfolio
Strengthening the Gulf of Mexico portfolio Partner in eleven high quality discoveries in deepwater US GoM
Slide 22: Statoil's activities in Venezuela
Statoil’s activities in Venezuela
Slide 23: A major gas player in Europe
A major gas player in Europe Estimated market position in 2007 based on current contracts* Statoil of total (%) Country ~20% Germany France Belgium Ireland 10-15% Austria Czech Rep Netherlands 5-10% Spain UK <5% Italy Turkey * Based on current contracts; Statoil including SDFI
Slide 24: Natural gas prices
Natural gas prices Forward curve as of January 30, 2007 Source: German statistical office, P. Heren, IPE, Platts, NYMEX
Slide 25: Indigenous gas production
Indigenous gas production OECD Europe gas production 1995 - 2020 •Norway: largest producer in OECD Europe; and growing •UK: uncertainty related to pace of reduction •Netherlands, other OECD Europe on modest decline Sources: Norway (MPE), otherwise Wood Mackenzie
Slide 26: Cove Point expansion approved
Cove Point expansion approved •FERC approval received 15 June, official ground-breaking took place on 5 October •Agreement between Statoil and Dominion involves annual terminal capacity rights of approx 7.7 bcm of gas for a 20-year period •Expansion expected to be in operation 1Q 2009 Statoil capaci