Lundin Petroleum in Norway WF11515

Transcription

1 Lundin Petroleum in Norway WF11515 Press Presentation - ONS 2012

2 2 Lundin Petroleum in Norway Lundin Petroleum Strategy To grow a Norwegian independent E&P company through proactive exploration, production and growth Norway WF11515 p

3 3 Norway - Successful Organic Growth LICENCES PEOPLE PRODUCTION RESERVES CONTINGENT boepd MMboe RESOURCES MMboe (1) , (2) 56 WF11515 p end 2004 end 2011 end 2004 end 2011 Finding cost, after tax, <1 USD/bbl in Norway (1) Includes Statoil estimate (120 MMboe net Lundin) for Johan Sverdrup PL265 (2) Includes updated Brynhild equity interest (WI: 100%)

4 4 Norway Capital Investment - Net to Lundin CAPEX NOK 10.2 billion DEVELOPMENT NOK 15 billion Edvard Grieg Brynhild Bøyla EXPLORATION & APPRAISAL NOK 2.5 Billion per year WF11515 p => > NOK 25 billion over the next four years

5 5 Norway Production Growth Future Exploration Success Bøyla Edvard Grieg Johan Sverdrup Apollo Skalle Caterpillar boepd Brynhild +100% increase in production Discoveries not included in production forecast WF11515 p ,000 23, H

6 6 Exploration in Norway - Organic Growth Major position built through organic growth 60 Norway number of licences

7 7 Norway - A Successful Organic Growth Story 865 MMboe of Reserves (1) and Contingent Resources (2) After tax finding cost of less than USD 1/bbl WF11415 p (1) Includes updated Brynhild equity interest (WI: 100%) (2) Statoil estimate (120 MMboe net Lundin) for Johan Sverdrup PL265

8 8 Norway Exploration Drilling Programme Barents Sea North Sea Norway North Sea Møre 208 Basin 209Area PL519 - Albert Lundin Petroleum Licences Operated Non-operated Hydrocarbon fields/discoveries Oil Gas Condensate WF11383 p PL533 - Salina 7117 Barents Sea 7219 PL PL492 PL Exploration (Drilling) Appraisal (Drilling) KM PL PL609B PL PL438 Snøhvit Barents Sea Lundin Petroleum 156 Licences 201 Operated Non-operated Hydrocarbon fields/discoveries Oil Gas Condensate PL PL Juksa Glasgow 7124 Hammerfest Aberdeen Kingdom United Southern NCS Area Edinburgh PL359 - Luno II PL265 - Geitungen North Sea Bergen Stavanger Utsira High Area Norway Kristiansand KM De 5

9 9 The Southern Utsira High - A Sleeping Giant 0 KM 20 Oil Gas APA 2012 PL625 A 4 th generation exploration and a major oil province 45 years after the first award: PL001 in 1965 APA 2010 PL546 PL501 APA 2009 Major acreage position built by Lundin Petroleum since 2004 APA 2004 PL338 PL410 APA 2007 PL265 PL501B APA PL544 APA 2010 APA 2006 PL Utsira High Southern Utsira High Area > over 900km 2 Lundin Petroleum Operator Lundin Petroleum Partner WF11366 p

10 10 Johan Sverdrup - A New Giant in Norway Edvard Grieg PL338 PL265 Geitungen - new exploration discovery PL A 16/2-13S sidetrack currently drilling 7 7A OWC -1922m PL501 4A 4 WF11497 p wells drilled to date on Johan Sverdrup

11 11 PL501-16/2-13S Johan Sverdrup Appraisal PL546 PL501 PL501 licence: Lundin Petroleum 40% operator Partners: Statoil 40%, Maersk 20% 25 oil meter gross oil column in Upper and Middle Jurassic sandstone reservoir in an oil-down-to situation 16/2-2 Aldous Major North 16/2-9S 16/2-12 The reservoir was encountered 10 m shallow to the depth prognosis Good reservoir properties 16/2-8 16/ /2-13S sidetrack 16/2-6 16/2-11 & 11A 16/2-13S 16/3-4 & 4A The well was drilled to 2060 m vertically below MSL The well will now be side-tracked 1200 m towards the north PL338 PL359 Johan Sverdrup (PL265) PL265 PL410 16/5-2 16/2-7 & 7A 16/3-2 WF11522 p Purpose of sidetrack 16/2-13A: Investigate the top and the lateral thickness and property variations of the Jurassic reservoir Establish an oil water contact PL502 Lundin operated block Lundin non-operated block Johan Sverdrup (PL501)

12 12 PL265 - Geitungen Discovery (16/2-12) PL546 PL501 PL265 licence: Lundin Petroleum 10% Partners: Statoil (40%) operator, Petoro 30%, Det norske 20%, Estimated resources: 140 to 270 MMboe 16/2-2 Aldous Major North 16/2-9S Geitungen discovery (16/2-12) 16/ meter gross oil column in Jurassic sandstone reservoir 16/ /2-13S sidetrack Well results indicate communication with Johan Sverdrup Geitungen Core PL338 PL359 16/2-8 Johan Sverdrup (PL265) PL265 16/2-13S 16/2-6 16/2-11 & 11A 16/3-4 & 4A 16/2-7 & 7A 16/3-2 16/5-2 WF11521 p PL502 PL410 Lundin operated block Lundin non-operated block Johan Sverdrup (PL501)

13 13 Utsira High Exploration Area 2012 Exploration Drilling PL359 (Lundin 40% operated) Luno II prospect Johan Sverdrup play type Reservoir: Upper Jurassic N Edvard Grieg discovery Johan Sverdrup discovery Southern Utsira High Gross unrisked prospective resources: 139 MMboe 0 4 KM Apollo discovery Edvard Grieg Luno South discovery Biotitt prospect Drilling: Q PL544 Lundin (40%) 0016! Jorvik prospect Lundin (50%) Lundin (10%) PL338 PL265 PL359 PL410 Lundin (40%) Lundin (70%) Johan Sverdrup PL265 discovery PL409 Lundin (70%) Luno II prospect Lundin Petroleum Operator Lundin Petroleum Partner Aldous Major North discovery Johan Sverdrup PL501discovery Lundin (40%) PL501 PL501B Lundin (40%) Upper Jurassic sandstone PL338 Luno II prospect PL359 WF

14 14 Southern Utsira High - Broadband 3D Seismic 0 2 KM 8 Lundin operated 3D on the Haugaland High : D OBC 40 km 2 over (Edvard Grieg) D Geostreamer 1650 km 2 regional P625 PL167&167B PL546 PL D Broadseis test 300 km 2 J. Sverdrup D Broadsesis 2500 km 2 regional Edvar Grieg Johan Sverdrup Discovery PL338 PL359 PL265 PL km WF11523 p PL409 PL544 Broadband 3D Seismic Lundin operated block Lundin non-operated block

15 15 Møre Basin Area - A New Core Area 2012 Exploration Drilling PL519 (Lundin 40% operated) Albert prospect Gross unrisked prospective resources: 177 MMboe Drilling ongoing Further prospectivity identified for 2013 drilling campaign Storm prospect Albert Well Location PL519 PL555 PL579 PL631 PL639 0 KM 20 Lundin operated block Lundin non-operated block Lundin 40% (Operator) Lundin 60% (Operator) Lundin 50% (Operator) Lundin 60% (Operator) - APA2011 Lundin 20% (Partner) - APA2011 UK PL639 Tybalt Discovery PL519 Storm PL555 PL579 Møre Basin Albert Norway Norway Knarr Discovery Knarr Albert Prospect Storm Prospect Tybalt Magnus Penguin West Penguin Beta Blåbær Beta Discovery Snorre Thistle Visund Statfjord Gullfaks WF11277 p N Hutton Brent PL631

16 WF9900 p Barents Sea Area Exploration Drilling PL533 (Lundin 20%) Salina prospect On trend with Skrugard and Havis discoveries PL490 (Lundin 50%) Juksa/Snurrevad prospect Late Jurassic/Cretaceous 7215 stratigraphic play Gross unrisked prospective resources: 335 MMboe Drilling Q Tromso play type Gross unrisked prospective resources: 500 MMboe Drilling ongoing April 2011 Skrugard Discovery MMboe January 2012 Havis Discovery MMboe 7219 PL533 PL ) PL PL PL PL609 PL609B ~25 km PL Snøhvit Area 7219 PL532 Lead Prospect Oil field Gas field Rauto Salina Gohta Licenced Area (NPD) Lundin Norway Licences Operated 7223 Non-Operated APA Barents Sea 7122 PL659 Goliat PL SWEDEN PL492 Lavvo PL609 Bieksu & Geres PL609B Skalle discovery 7226 PL PL PL438 Snurrevad 7125 Hammerfest NORWAY KM 20 Rein Juksa Snøhvit Area

17 17 PL533 Salina PL659 April 2011 Skrugard Discovery MMboe PL609 Januray 2012 Havis Discovery MMboe Salina PL609B PL492 PL438 Skalle PL490 PL533 Juksa/Snurrevad PL563 WF11421 p

18 18 Bridging Enviromental Knowledge in the Barents Sea Ship wrecks and disposal sites Oil seep Gas hydrate Plow mark Gas seep Deep water reefs Pock mark Bottom trawling tracks Shallow gas Gas migration along fault Oil migration along fault WF11515 p Gas reservoir Oil reservoir

19 19 Environmental Seabottom Mapping Oil slicks from satellite data Regional and high resolution 2D data Hugin Photos Released data and data bought from several Vendors PCable high resolution seismic Multibeam Echosounder and TOPAZ data Sponges from Hugin Photo ROV photo inspection and Sampling Gravity cores and grab samples Rock Fish (Uer) from Hugin Photo 3D data Hugin Side scan sonar, sub bottom profiler salinity, temperature CH4 sniffer, and photo WF11515 p Lundin and partner license seismic Additional released seismic Methods Whale skeleton from Hugin Photo Results

20 PL292 PL Brynhild - Development Lundin Petroleum interest: 70% (operator) PDO approved in November 2011 Tie-back to Haewene Brim FPSO located at Shell Pierce field in the UK 2P reserves 20.4 MMbo Plateau production: 12,000 boepd First oil end KM 20 HOWE SHELLEY MONTROSE 022/08 (Area 2) MARIA MALLORY 022/14 (Area 3) 022 SEYMOUR PL495B EVEREST N;S AND CATS 022/15 (Area 2) BANKS PL292B Gaupe PL292 PHYLLIS MORTIMER PL495 Brynhild Lundin Petroleum Operator Lundin Petroleum Partner PL148 NORWAY 07 ARBROATH WOOD CARNOUSTIE FIDDICH ARKWRIGHT BRECHIN MONAN MIRREN COLUMBUS 38 km MILLBURN KATE UK Marnock SKUA EGRET MERGANSER SEAGULL HERON LOMOND 023 Pierce COD PL301 Ula 022/28 (Area 2) WF11292 p

21 21 Brynhild - Development Lundin Petroleum s main contractors: Aker (SPS) Technip (pipelines and installation) Maersk Drilling (jack-up) WF11515 p Pierce topside modifications: Shell

22 22 Utsira High Area - Edvard Grieg Development 0 KM 20 Lundin Petroleum interest: 50% (operator) Wintershall 30%, RWE Dea 20% Plan of Development approved PL036c PL203 PL150B PL150 PL340 PL505 Alvheim Area PL505BS P reserves: 186 MMboe gross Plateau production: 100,000 boepd gross Commercial agreement for coordinated development with Draupne Lundin Petroleum to join the club of fixed asset installation operators on the Norwegian North Sea 015 UK 016 PL340BS 0024 Edvard Grieg 0015 PL570 PL544 PL625 PL167 & PL167B PL338 PL359 PL409 PL265 PL Utsira High Area PL546 Draupne PL501 PL501B Norway 0017 WF11387p Lundin Petroleum Operator Lundin Petroleum Partner

23 23 Edvard Grieg Development Project Production startup Oct 2015 Capital costs: 24 NOK billion Drilling 15 wells from jack-up rig 11 producers and 4 water injectors Contract award to Rowan companies Platform PdQ Jacket and Topsides - contracts awarded to Kværner Marine installations - contract awarded to Saipem Design capacity - Oil: bopd (with Draupne: > bopd) - Gas: 2 MSm³/d (with Draupne: 4 MSm³/d) Designed for coordinated development with a Draupne platform development Export pipelines WF11430 p Oil export pipeline to Grane Gas export pipeline Jacket: Topsides: 13,000 tonnes 21,000 tonnes

24 24 Edvard Grieg Development - Main Contracts Jacket Contract - value 1 BNOK The jacket will be built by Kværner Verdal under an EPC contract awarded in May 2012, delivery March 2014 Topside Contract - value 8 BNOK An EPC contract for the whole topside has been awarded to Kværner Stord in May 2012, with delivery in April 2015 fully tested and commissioned. Jacket/Topside Transport and Installation Contract - value 505 MNOK A contract for transport and installation of the jacket in 2014, and the topside in 2015, has been awarded to Saipem Flotel Contract - value 380 MNOK A contract has been awarded to Prosafe for supply of a new-built flotel in the summer 2015 Export pipelines Contract - PDO budget 3 BNOK The export pipelines will be installed by Statoil, no contract awarded so far WF11515 p Drilling Contract - value 2 BNOK A contract has been awarded to Rowan companies, starting in Q2 2014

25 25 Edvard Grieg - Project Schedule Edvard Grieg Discovery Delineation Drilling Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 16/1-8 ( ) 16/ /1-8R 16/ / Q3 Q1 Q2 J F M A M J J A S Q4 0 N D 2013 Q3 Q1 Q2 J F M A M J J A S Q4 0 N D 2014 Q3 Q1 Q2 J F M A M J J A S Q4 0 N D 2015 Q2 Q3 J F M A M J J A S Q4 0 N D Decision Gate / PDO Jacket Execution Topside Execution DG1 DG2 DG3 PDO Approved to Authorities Installation Oil & Gas Export Pipeline Pre Drilling & Drilling First Oil WF11515 p Engineering/Procurement Construction/Assembly Load out/seafastning & Marine Operations Pipelaying Offshore Hook-up/Commissioning Drilling Contract Award

26 26 Organic Growth Strategy Find oil with the drill bit - organic growth Leverage on organisational knowledge Loppa High Area Portfolio synergy in relation to improved exploration and development Design yearly balanced exploration drilling portfolios in relation to Frontier breakthrough Growth Mature tie-in Norway Maintain production from existing and emerging developments WF11515 p Applying and developing data and fact driven subsurface models, based on appreciation of the limitations of data, tools, methods and theories available at any time Applying new emerging technology and methods Jæren High Area Manet High Area Greater Alvheim Area Haugaland High Area Sørvestlandet High Area

27 27 Norway Drilling Schedule Licence - Prospect Operator LUPE% (1) NUPR CoS % NRPR (2) 1 PL501 - Johan Sverdrup 16/2-11 App. Lundin PL265 - Geitungen 16/2-12 Statoil PL265 - Johan Sverdrup App.1 Statoil PL265 - Johan Sverdrup App.2 Statoil PL501 - Johan Sverdrup 16/2-13 App. Lundin PL490 - Juksa Lundin % 41 7 PL519 - Albert 6201/11-3 Lundin % 18 8 PL501 - Johan Sverdrup 16/5-3 App. Lundin PL359 - Luno II Lundin % PL544 - Biotitt Lundin % PL338 - Jorvik Lundin % PL501 - Johan Sverdrup App.8 Lundin PL453 - Ogna Lundin % PL495 - Carlsberg Lundin % 9 15 PL338 - Apollo App. Lundin PL440S - Clapton Faroe % 3 17 PL533 - Salina ENI % 15 operated non operated 2012 Q1 Q2 Q3 Q4 Discovery Temp Suspension Discovery Ongoing Ongoing P&A dry Ongoing moved to 2013 moved to 2013 moved to 2013 moved to 2013 moved to 2013 WF11117 p (1) Net Unrisked Prospective Resources (MMboe) (2) Net Risked Prospective Resources (MMboe)

28 28 Disclaimer This information has been made public in accordance with the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Forward-Looking Statements Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading Risks and Risk Management and elsewhere in the Company s annual report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement. Reserves and Resources Unless otherwise stated, Lundin Petroleum s reserve and resource estimates are as at 31 December 2011, and have been prepared and audited in accordance with National Instrument Standards of Disclosure for Oil and Gas Activities ("NI ") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless otherwise stated, all reserves estimates contained herein are the aggregate of Proved Reserves and Probable Reserves, together also known as 2P Reserves. For further information on reserve and resource classifications, see Reserves and Resources in the Company s annual report. Contingent Resources Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. There is no certainty that it will be commercially viable for the Company to produce any portion of the Contingent Resources. Prospective Resources Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources. BOEs BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. WF8278

29 29 VISIT US AT