JP Morgan 7 th annual middle east energy tour

Transcription

1 JP Morgan 7 th annual middle east energy tour Dubai, November 11 th,

2 E&P: sustainable growth Production (kboe/d) 1,737 1,770 1,736 1,797 1,562 1,624 1,472 1,369 1, Large player in fastest growing areas Strong presence in giant projects Focus on three core regions Top producer Leading Player 85% of new production breakeven <45$/bl* *At WACC adjusted for country risk 2

3 efficiency and cash generation Lifting cost $/boe E&P cash flow $/boe eni Benchmark Group* * ExxonMobil, BP, Shell, Chevron, ConocoPhillips, Total (based on company reports); eni included 3

4 reserve replacement ratio Organic All Sources ~110% ~95% 87% 71% Reported Reported 4

5 robust future cash generation Discounted net future cash flow* $/boe % % eni Peers 96 $/boe; 36.5 $/boe Peers: BP, Chevron, ConocoPhillips, eni, ExxonMobil, Shell, Total *Source: disclosure SEC according to SFAS 69 5

6 main start-ups in 2009 Up to November 2009 Peak boed Project Op. (100%) Abo Phase M'Boundi Water Inj Blacktip Longhorn Tombua Landana Tyrhians Thunderhawk Gambat Latif Saquib Awa Paloukou Tresauro Val d'agri Ph Yttergyta Leo PY North Bardawil Thekah Annamaria OECD 9 start-ups Africa 6 start-ups Asia 4 start-ups 19 start-ups up to November 2009 Peak equity contribution at plateau: approx. 180 kboed 6

7 strengthening E&P resource base 9 months 2009 added resources: over 900 mmboe NORWAY Victoria South Nona 3 Blocks Main discoveries New acreage US (GoM & Onshore) Heidelberg Longhorn Deep J.V. with Quicksilver in unconventional gas shales LIBYA A1-16/4 TUNISIA CHINA 2 Blocks PAKISTAN VENEZUELA EB-407 EGYPT Miano 12 Badhro Jabal 1 1 block Perla BRAZIL GHANA Sankofa OCTP/OCTPS blocks Satis 2 Nardine 1 ANGOLA INDONESIA GALP share in Iracema 1 Mondo 4 Punja 4 Cabaça Norte Jangkrik 1 Giant discovery in Venezuela (Perla) Significant discoveries in Angola, Ghana, U.S., Indonesia, Pakistan, Norway, Brazil (Galp) New acreages in Ghana, GoM, Norway, China, Pakistan and U.S. onshore (gas shales) 7

8 eni in Ghana Acquisition of a 47.2% share and operatorship from Vitol in 2 deepwater blocks: OCTP block: 2,080 Sqkm, water depth 10 to 1,550 m OCTPS block: 740 Sqkm, water depth 900 to 1,830 m JV: Eni 47.2 %, Vitol 37.8 %, GNPC 15% Both blocks in the prolific Tano Basin, not far from the Jubilee discovery First well (Sankofa 1A) drilled in Summer Oil & Gas discovery under evaluation Additional exploration potential, currently under evaluation Further drilling and appraisal activities planned for 2010 and

9 Venezuela Perla discovery World class gas discovery in the Venezuelan shallow water Reserve potential: > 6 TCF of gas (1 billion boe) Perla Perla 1X well encountered a hydrocarbon column of 240 meters During tests, well produced high quality gas with a capacity of 600,000 cubic meters per day (approx. 3,700 boed) and 500 bl of condensates per day Normalized gas production per well is expected to increase to over 1 million cubic meters per day (6,000 boed) 9

10 Angola Cabaça discovery The well, located in Block 15/06 in 500 m of water, was drilled at a depth of ca. 2,830 m. During tests, well produced in excess of 6,500 bbl of oil per day The results of the well exceeded predrill expectations Further wells will be drilled near Cabaça to accelerate the development of a possible second production hub The first production hub (Sangos and N Goma discoveries) is in the predevelopment phase (FID in 2010) 10

11 growing exposure to giant projects Giant projects equity production kboe/d ~1, ~ Start-ups & growth Producing Operated production 69% 74% 81% Present in 38 giant projects (>0.5 bln boe), of which 19 operated Source: Goldman Sachs - Top 230 projects and eni elaboration 11

12 Iraq Zubair redevelopment project Contract Technical Contract Service awarded in October 2009 following competitive tender process Eni operator of IOC consortium (~40% stake) which includes Oxy and Kogas Contract subject to ratification, expected by YE2009 Service Contract structure with State-owned company SOC (South Oil Company) Main project data Over 15 billion bl original oil-in-place (Iraqi source), >90% still in-place Production increase target: from ~200 to 1,200 kboe/d Conventional reservoir with very competitive technical opex and development capex Giant project with organic growth potential 12

13 Zubair Project Background Location 20 km south-west of Basrah city Distance to the coast: approx. 100km Reservoirs First discovery in 1949 Production start-up in 1951 Mishrif carbonate reservoir and Zubair sandstone reservoir 178 wells and surface facilities Formations depth range between 2,300 and 3,300 m Included in Iraq s 1st Petroleum Licensing Round On October 12, 2009 consortium led by Eni, Occidental Petroleum Corp. & Korea Gas Corp. was declared the winner of this field with a Plateau Production Target of 1,125kboed (revised to 1,200kboed) and 2.0 US$/bbl as Remuneration Fee 13

14 Zubair facilities Field area is 65 km long and 18 km wide API gravity 26.4 (Mishrif), 32.3 (Third Pay) 77 existing production wells First step: security evaluation ongoing Field area km 2 14

15 Zubair Service Contract Flow Chart INCREMENTAL PRODUCTION (I.P.) Remuneration Fee (R.F.)*I.P. + Petroleum Costs (P.C.) Service Fee Due (P.C.+R.F.) Service Fee Cap (S.F.C.) (1) Source: Wood Mackenzie Service Fee + Suppl. Fee (2) minus Capital Cost + Opex + Suppl. costs CIT (35% on R.F.) = CONTRACTOR NET CASH FLOW The contract term is twenty years with an optional fiveyear extension (1) Extent of a maximum of 50% of the I.P. revenues (2) Max 10% of Baseline Production revenues 15

16 Kashagan Total area: 75 km x 45 km Reservoir average depth 4,300 m High pressure, high H 2 S content Oil in place: 34.5 billion barrels Exploration and appraisal success rate 100% Largest discovery in past 40 years Recoverable reserves ~ 13 billion boe Physical progress of project overall: 66% progress in line with Kashagan Commercial Production by end

17 M Boundi project overview Field production increase through EOR projects (W.I. and artificial lift optimization) M Boundi (80.1%) M Boundi Field (83%) Main development activities: revamping of the currently producing oil train to match increased production profiles oil and gas gathering network and water injection network at M Boundi; realization of a water injection system for BWPD drilling of 110 new producers and 86 injectors gas valorization through feeding of the CEC (centrale electrique du Congo) power plant and re-injection of excess associated gas Expected Production Plateau: over 55 kboepd (100%) Hydrocarbon Type: Oil (37-38 API) & associated Gas 17

18 Samburgsky project overview Eni E&P W.I.: 29.4% Operator: Arcticgas Partners: Enel 19.6%, Gazprom 51% Start-up: June 2011 Ph Ph.2 & Ph.3 Production rate: > 130 kboe/d in two years from the start-up Key features drilling: 6 wells + 16 workover procurement: LLI Contracts Awarded inspection for critical items completed PDP approval gas and condensate commercial agreements Project development on schedule 18

19 Goliat project overview Eni W.I.: 65% Operator: Eni Norge Partners: Statoil Hydro (35%) FID taken in October 2009 Start-up: Peak production (100%): > 90 kboed Development Case wells: 22 (11 producers, 9 WI, 2 gas injection) geostationary FPSO where the fluids will be treated to the export specification, subsea templates and relevant flowlines, risers and umbelical interconnecting the system power supply from shore via underwater cable, integrated with power generation in FPSO 19