Presentation for the fourth quarter 2012

Transcription

1 Presentation for the fourth quarter 2012

2 Disclaimer All presentations and their appendices (hereinafter referred to as Investor Presentations ) published on have been prepared by Det norske oljeselskap ASA ( Det norske oljeselskap or the Company ) exclusively for information purposes. The presentations have not been reviewed or registered with any public authority or stock exchange. Recipients of these presentations may not reproduce, redistribute or pass on, in whole or in part, these presentations to any other person. The distribution of these presentations and the offering, subscription, purchase or sale of securities issued by the Company in certain jurisdictions is restricted by law. 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An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in these presentations, including, among others, risks or uncertainties associated with the Company s business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in these documents. 2

3 Highlights since the third quarter Ivar Aasen PDO submitted 3.3 % in Dagny and PDO submitted Atla production on stream Garantiana oil discovery 8 licenses in APA 2012 Exploration facility and share issue 3

4 Ivar Aasen PDO submitted Area overview of the field development Det norske 35 pct and operator Development concept Ivar Aasen Fixed platform First stage separation at Ivar Aasen Final processing at Edvard Grieg Gas export via SAGE to St. Fergus Oil export via Grane to Sture Terminal Gross recoverable volumes 148 million boe (P50 PDO) * * Pre PL 457 discovery 4

5 Ivar Aasen contracts awarded PDO submitted on December 21 st Capex estimated at NOK 24,7 bn Topside EPC contract to SMOE and Mustang Engineering Main support module tons Processing module tons Flare boom 250 tons Living quarters to be subcontracted SMOE awarded Ivar Aasen topside contract Living Quarter Process module Main support module Flare boom 5

6 Ivar Aasen milestones PDO Contract awards Construction Well drilling Install jacket Install topside First oil Hanz on stream Discussion with PL 457 partners LOI with Saipem for Jacket, transport and installation 6

7 Ivar Aasen A two phased development Production Boepd Capex Mill NOK Phase 1 Phase Tariffs Opex Capex

8 Det norske s position on the Utsira High PL 001B/028B/ percent PL 265: Det norske 20% Statoil (Op) 40% Petoro 30% Lundin 10% PL 501: Lundin (Op) 40% Statoil 40% Mærsk 20 PL 502: Det norske 22% Statoil (Op) 45% Petoro 33% The Utsira High area 8

9 Johan Sverdrup way forward Concept studies Concept selection Unitisation PDO Construction Installation First oil Ivar Aasen 35% Distribution platform Transformer 3,3% Illustration: Statoil 9

10 Additional exploration potential in PL 265 Geitungen success 35 m oil column High quality reservoir On top of basement Cliffhanger North? Geitungen appraisal? Near Fault Margin + potential sidetrack? Cliffhanger North mboe Well in Q3? 16/ /2-16A 16/2-16 Main risk Cliffhanger prospect Presence Thickness Quality 16/5-3 16/ /3-5 Follow up potential on the high Sverdrup southern extension Major exploration potential on top of the Utsira Basement High 10

11 PDO for Dagny submitted Key development features License partners Agreement in December 2012 for a 3.3 percent interest in the Dagny unit Scheduled for start up in 1Q 2017 Det norske Statoil Total 3.3 percent 58.7 percent (O) 38.0 percent Gross recoverable volumes 225 million boe (P50) Capex NOK 31 bn Illustration: Statoil 11

12 Jette Status Production start-up in April 2013 Subsea work and wells completed Platform modifications and testing remaining critical elements Capital expenditures ~ NOKM net to Det norske ~ NOKM 450 in remaining capex for Det norske Production: ~ boepd net to Det norske Det norske is the operator Det norske 70 percent Petoro 30 percent 12

13 Less mature Mature North Sea project inventory North Sea discoveries Garantiana Krafla Fulla East Frigg Storklakken Frøy Jette Stavanger Ivar Aasen J. Sverdrup Dagny Asset portfolio 75 NCS licenses Awarded eight in APA 2012 Plans 8-10 exploration wells annually Plan significant production growth from Ivar Aasen, Johan Sverdrup and Dagny. Discovery Det norske s equity Mill boe (Gross) Net boe/day Det norske Possible concept Operator Earliest first production Ivar Aasen 35% 148 ~16-22,000 Stand alone jacket platform Det norske 2016 Dagny 3.3% 225 TBD Stand alone jacket platform Statoil 2017 Sverdrup/Geitungen 20% - TBD Stand alone, jacket platforms Statoil 2018 Krafla/Krafla West 25% ~6,000 Tie-back to Oseberg Statoil TBD Fulla 15% TBD Tie-back Heimdal or Bruce Centrica TBD Frøy 50% ~20,000 Stand alone or Area development Det norske TBD Storklakken 100% 8-12 TBD Stand alone or Area development Det norske TBD East Frigg GD 20% TBD Stand alone or Area development Centrica TBD Garantiana 20% TBD Under evaluation Total TBD

14 AGR certified reserve/resource estimates Reserves (Mboe) Contingent resources in the planning phase (Mboe) P10 (Other discoveries) P90 (Other discoveries) (Johan Sverdrup in PL 265) (Johan Sverdrup in PL 265) P50 Reserves

15 Financials 15

16 Share issue and new exploration facility Det norske in Q4 issued million new shares at price NOK Gross proceeds from the private placement was NOK 1,029 million The private placement was carried out as an accelerated book building process without discount to the previous day closing price New NOK 3,500 million exploration facility Available up to Final repayment in December bps margin to NIBOR + utilization fees 2013 Budget for Capex and Exploration spending Capex NOK 1,700 million, mainly related to Ivar Aasen and Jette Pre tax exploration spending, including Johan Sverdrup ~ NOK 2,000 million 16

17 Production and operating cash flow Production (boe/day left scale) Price (USD/boe right scale) Ownership position boe/day Q Q Q Q Q Q Q Q Q Varg Enoch Jotun Glitne Atla Realised oil price Varg 5% Jotun Unit 7% Glitne 10% Enoch 2% Atla 10% Net back margin Q Q Q Q Q Basis for calculation Petroleum price, $/boe ,8 Lifted volumes 3rd party tariff income, $/boe Produced volumes Operating cost, $/boe Produced volumes Op CF, $/boe

18 Atla high initial production rates Commenced production on October 7th Deferred payment from Atla Good initial production with high condensate content Atla details Gas volume 75% Gas revenues 60% Partly deferred payment due to tariff agreement with Byggve / Skirne Det norske 10 percent Total (Op) 40 percent Petoro 30 percent Centrica 20 percent Physical oil Commercial oil Physical gas commercial gas 18

19 Income statement Income statement (NOK mill) Q Q Q Revenues Production cost, G&A EBITDAX Exploration expenses Depreciation Impairment charge Other operating expenses Operating profit/loss (EBIT) Net financial items Profit/loss before taxes Tax income Net profit/loss

20 Balance Sheet Assets (NOK mill) Intangible assets Property, plant and equipment Calculated tax receivables (long) Receivables and other assets Calculated tax receivables (short) Cash and cash equivalents Total Assets Equity and Liabilities (NOK mill) Equity Deferred taxes Other provisions for liabilities Bonds Revolving credit facility Exploration facility Creditors and other current liabilities Total Equity and Liabilities

21 Net cash & liquidity Net cash and liquidity position as of (NOK mill) Balance Sheet Credit * ,700* , ,154 1, ,889* * Assumed USD/NOK 6.0 and book value of debt 21

22 Financials Exploration Photo: Testing at Garantiana 22

23 Drilling plan through 2013 PL Prospect Net % Start mmboe Operator Rig 453S Ogna 25 Ongoing Lundin M.Guardian 502 JS Extension 22 1Q Statoil O. Vanguard 531 Darwin 10 1Q Repsol T. Barents 265 JS Near Fault 20 2Q13 App. Statoil O. Vanguard 265 Possible sidetrack 20 2Q13 Statoil O. Vanguard 535 Norvarg Extension 20 2Q13 App. Total Leiv Eriksson 265 Cliffhanger 20 3Q Statoil TBA 551 Mantra/Kuro 20 3Q Spring T. Barents 542 Augunshaug 60 3Q Det norske M. Giant 265 Possible Geitungen 20 Q3 13 App. Statoil TBA 659 Caurus 30 4Q Det norske T. Barents 035 Askja West/East 25 4Q Statoil O. Vanguard 23

24 Barents Sea exploration campaign PL 531 Darwin PL 659 Caurus PL 535 Norvarg R km Melkøya/Hammerfest 24

25 North Sea exploration program PL 542 Augunshaug PL 453S Ogna PL 265/502 JS Extension Near Fault well Cliffhanger PL 035 Askja PL 551 Mantra Stavanger 25

26 APA 2012 Eight new exploration licences PL Companies (%) 542 B Det norske oljeselskap (O) Spring Energy Norge Det norske oljeselskap (O) Bayerngas Norge Fortis Petroleum Norway Premier Oil Norge Petoro Total E&P Norge (O) Det norske oljeselskap Spring Energy Norway Talisman Energy Norge (O) Det norske oljeselskap Fortis Petroleum Norway PL677 (o) 60% PL676s (p) 20% Awarded areas PL681 (p) 16% PL678s (p) 25% 676 S Faroe Petroleum Norge (O) Det norske oljeselskap Total E&P Norge Petoro PL672 (p) 25% 677 Det norske oljeselskap (O) Fortis Petroleum Norway 678 S 681 Wintershall Norge (O) Det norske oljeselskap Lundin Norway Fortis Petroleum Norway Spring Energy Norge (O) Det norske oljeselskap Petoro PL667 (p) 30% PL542 (o) 60% PL663 (o) 30% 26

27 Outlook Exploration 3-4 wells in PL 265 / 502, including new prospect Cliffhanger Barents Sea campaign to test large structures on Norvarg, Caurus and Darwin Field developments Expect parliament to approve PDO for Ivar Aasen and Dagny before summer 2013 Jette to come on stream in April, adding significant volumes to Det norske Financial Strengthened funding with 10 percent equity issue New NOK 3,500 million exploration facility in place 27

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