Norway BU presentation to investors (ppt, 2009KB)
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Transcript of Norway BU presentation to investors (ppt, 2009KB)
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Norway BU presentation to investors
bp
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Growing from a firm foundation
1998 1999 2000 2001
Marginal operations
Moderate positionand influence inNorway
Gained scale
Cut costs
Getting the basicsright
Installed fiber opticcable
Step change licenseawards
Royalty relief
Sanction Tambar
Sanctioned projects-Valhall drilling- Ula drilling- Gyda drilling- Valhall WIP
Initiated power cablestudy
Positioned for gas
Purchased Ulapipe
Positioned for environmentalchanges
Confirming Skarv
Driiling Havsule
Sanction Valhall Flankproject
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Focus on politics =suboptimalsolutions?
= cost overruns
Too much Statoil = SDFI
Huge t-o-p gas deals by Statoil,
= later GFU
1986 price fall = tax cut
= new investments
Majors complain, .....but remain
A changing business environment
MARKETOPPORTUNITIES
KNOCKS
Little awarenessin Norway
”Let the foreigners
do this”
Oklahoma pioneers
Industry boomby private enterprisebut then....
State takes control through Statoil,
NPD, regulati-ons and the
taxman
Send inthe state
1960’s 1970’s 1980’s 1990’s 2000’s
Politics before value?
New areas opens=competition for
capital and people
Improved t&c
Norw. industry sees need to
compete abroad
BP Statoil alliancewins strong positions
Gov. accpets EU liberalisation
of licensing and purchasing
Commercial thinking
Further t&c improvements
royalty, CO2 tax
Parliament cutsred tape
SDFI sale, Statoil privatisation
Gov. accept EUgas liberalisation
GFU will go
Cuts Statoil dom-inance in gas
transport
NEW MARKET OPPORTUNITIES
Global positioning
Lev
el o
f lib
eral
bu
sin
ess
envi
ron
men
t
Time
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Strategy: Growth and profitability
Build on merger synergies
Maximise base value and recovery
Monetise discoveries
Become a leading player in Norwegian gas
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BP global upstream production
0
2000
3000
4000
5000
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05
7%
5.5%
Productionmboed
Base Like for like adjustmentNew projects
Source: BP data
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Valhall – growing a mature asset
VALHALL RESERVES GROWTH
0
50
100
150
200
250
300
350
Ult
ima
te r
es
erv
es
(m
ms
tb)
BP Net Reserves (BP - 28.1%)
67+50
+35
+10 +30+75
267
Ori
gin
al r
eser
ves
Ho
rizo
nta
l w
ells S
eism
ic
Ad
van
ced
com
ple
tio
ns
ER
D(D
rill
ing
) IOR
Cu
rren
tre
serv
es
0
5
10
15
20
25
30
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40
45
1982
1984
1986
1988
1990
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2006
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2010
2012
2014
mb
oe
d
Base Water injection Flank development
VALHALL PRODUCTION PROFILE
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New projects
BPN00416.fh8
2/11/3
8/107/12PL019C
PL019C
PL019A
PL019B
PL019B
PL019C
PL065
PL065
GYDA
To EKOFISK
PL 065 (Tambar)BP Amoco: 55%SDFI (State): 30%
15%
ULATambar - Ula: 16kmTambar - Gyda: 11.5kmTambar - Ekofisk: 50km
Oil exportGas export
Multiphase
TAMBAR
0
10
20
30
40
5060
70
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90
100
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
mb
oed
Base Tambar Ula wag
PRODUCTION PROFILE
Shell
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Gas demand growth
74
104
1999 2010
CAGR = 3.2%
Americas
44
68
CAGR = 4.1%
Asia & Middle East
1999 2010
Source:DRI, 4th quarter 1999
Bcf/d
3852
CAGR = 2.8%
Europe
1999 2010
0
2
4
6
8
10
12
14
UK
Germ
any
France
Nether
lands
Belgiu
m
Poland
Austria
Czech
Hungary
bcf/d
20002010
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UK supply-demand
0
25
50
75
100
125
150
175
1990 1995 2000 2005 2010 2015 2020
Undiscovered
Discoveries
Existing fields
High demandplus exports
Low demandplus exports
(BCM/year)
Source: Wood Mackenzie
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Shell2,8 %
Statoil9,5 %
TFE3,9 %
Others2,5 %
YTF42,6 %
SDFI27,3 %
BP1,2 %
Norsk Hydro6,9 %ExxonMobil
2,7 % Phillips0,5 %
Source: WoodMac and NPD
11% of YTF is licensed, whereof BPholds 18%
Norwegian gas reservesTotal: 200 Tcf
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BP – Positioned to grow in gas
Exploration
Discoveries
Production
65°
PL 212
PL 216
PL 093PL 158
PL 208 PL 250
2°
66°
64°
PL 251
PL 254
PL 260
PL 262PL 261
PL 200
PL 210
PL 217 PL 218
Draugen
OrmenLange
Skarv&Snadd
Luva
63°
4°
6° 8°
Kristiansund
Trondheim
10°
Non BP acreage
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Skarv development
400m
Development cost NOK 11-13 billion
FPSO
48%
Subsea
26%
Drilling
26%
• Plan for development and operation 1Q/02
• First production 4Q/04
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World-class potential 10- 15+ TCF
Currently determining most optimal development plan
Additional 1 or 2 appraisal wells required
Field will likely be developed with Spar or Semi
Production start-up in 2007 +/- 1 year
BP supports early positioning of OL in gas market
Forecast plateau rate of 15 BCMA
BP net interest of circa 10% anticipated
Ormen Lange
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Summary
Used the opportunity of the merger to reshape our business
– Profitability enhanced
– Foundation for growth
We are growing
Positioned to seize the opportunities coming from a changing Norwegian business environment
En route to being a leading gas player in Norway