Operational Excellence Dr. Ties Tiessen Member of the Board of Wintershall

Transcription

1 Operational Excellence Dr. Ties Tiessen Member of the Board of Wintershall

2 Disclaimer This presentation contains forward-looking statements under the U.S. Private Securities Litigation Reform Act of These statements are based on current expectations, estimates and projections of BASF management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of BASF to be materially different from those that may be expressed or implied by such statements. Such factors include those discussed in BASF s Form 20-F filed with the Securities and Exchange Commission. We do not assume any obligation to update the forward-looking statements contained in this presentation. 2

3 The Wintershall value chain Exploration & Development Production Gas Trading 3

4 Strong foundation for future growth Exploration & Development Production Gas Trading 4

5 Wintershall Major player in core regions Germany Largest oil producer Proving ground for EOR/ Tight Gas/mature fields Netherlands Russia Major gas producer Major exploration acreage holder in the Southern North Sea: NL, UK, DK, D Libya Core region Established independent major operator Plateau production until 2008 at least high discovery rate due to excellent regional expertise OPCO Production and / or Exploration Argentina Major established gas player Excellent growth potential in existing concessions and new exploration acreage 5

6 Wintershall Germany Mittelplate/Dieksand Production in million boe Leer 30 Emlichheim Germany E E Gas Oil 6

7 Field life extension through technological breakthroughs Emlichheim 7

8 Field life extension through technological breakthroughs Production in million boe 2 1 Emlichheim 55 years on plateau Application of improved and enhanced oil recovery technologies Plateau extension for another decade with steam flooding in combination with horizontal drilling Primary (incl. artificial lift) Tertiary (hot water) Secondary (cold water) Tertiary (steam) 8

9 Leer Tight gas development unlocking the future of gas production Recovery of gas trapped in extremely low permeable (tight) formations Combination of horizontal drilling with multiple hydraulic fracs Fraccing of reservoir improves gas flow 9

10 Leer Tight gas development unlocking the future of gas production 10

11 Mittelplate Drill for oil, care for nature Mittelplate New pipeline connection Dieksand Balancing oil production and environmental protection in the national park Schleswig- Holsteinisches Wattenmeer (no emissions) Application of proven technologies in an innovative manner Triplication of drilling radius with new rig from 2,000 to 6,000 m Büsum salt dome Mittelplate Büsum salt dome 6000 m : 2000 m Dieksand 0 5 km 11

12 Wintershall Netherlands F16-E, E18 Development Denmark Production in million boe 20 UK Germany L5-C: Field Development Netherlands E E Gas Oil 12

13 Fast track to commercial success E18-6 F16 platform F16-E Operator of choice in the Southern North Sea (currently operating 26 offshore platforms) Developments near existing infrastructure, latest example E18: - E18-6 finder well successfully tested - E18 development via F16 platform facilities F16-P F16 13

14 Platform re-use K10-V to L5-C Environmentally preferred solution Saving on capex Fast project realisation Highly economical due to accelerated development 14

15 Wintershall Libya C137 Production in million boe C96, As Sarah, GUP * Libya E E C97 Gas Oil *C96/97 100% 15

16 Satellite view of As Sarah & Jakhira fields As Sarah B5-96 B2-96 B32-96 B17-96 B8-96 B9-96 B36-96 B38-96 A4-96 A8-96 A7-96 A1-96 B6-96 B4-96 B1-96 B35-96 Jakhira Production wells B33-96 B28-96 B16-96 B26-96 B10-96 B3-96 B30-96 B25-96 B14-96 B12-96 B11-96 B41-96 B19-96 B13-96 B39-96 B21-96 B37-96 B27-96 B22-96 B31-96 B20-96 B15-96 B24-96 B23-96 B29-96 B Operator of eight onshore fields Frontrunner in HSE and technology, e.g: - World s largest onshore 3D Seismic anisotropic Pre-Stack- Depth Migration (> 2100 km²) - Multi component seismic A10-96 A6-96 A3-96 A Innovative drilling mud systems A5-96 A

17 As Sarah field paid off: - Four new discoveries since 2002 (N, P, Q, T) - Three new fields already on stream (N, P, Q) - Extension of plateau production and >60% ultimate recovery factor of As Sarah, Wintershall s largest oil field - Implementation of zero flaring policy 17

18 Gas utilization plant Major investment in environmental protection Utilization of associated gas Mutual benefits for Libya and BASF Reduction of CO 2 emission by approximately 2.6 million tons yearly* 18 * No emissions trading because Libya is outside Kyoto protocol

19 Wintershall Argentina Production in million boe 33 Argentina Cuenca Marina Austral with Carina and Aries fields E E Gas Oil 19

20 Carina and Aries World s southernmost platforms SAN MARTIN PIPELINE To date the largest offshore project for the recovery of hydrocarbons in Argentina MAGALLANES STRAIT CANADON ALFA RIO CULLEN ARIES CARINA Onshore processing through enhancement of existing facilities including turboexpansion FENIX VEGA PLEYADE Argentina 20

21 Cuenca Marina Austral Production profile Gas Gas production production (100%) (100%) in million m 3 /d million m3/d ARIES VEGA PLEYADE FENIX CARINA CARINA PHASE 1 PHASE 2 CAÑADON ALFA RIO CULLEN CMA development contributes significantly to the security of supply of the Southern Cone Sequential field development secures long-term utilization of the San Martin pipeline capacity 21

22 Wintershall E&P Our license to operate Five year average Lost Time Injury Frequency* [LTI/million working hours] Wintershall Peers Average Range Peers Production growth [% p.a.] Production/Employee [ 000boe/employee] Production costs [USD/boe] Peer Group: ExxonMobil, Shell, BP, Total, Hydro, BG, Amerada Hess, OMV, Apache, Marathon, Occidental, Talisman, Woodside Source: CERA, Herolds, Woodmac, SEC * WEG-Unfallstatistik 2005 / 2006 Wintershall worldwide 22

23 Operatorship Our specific strength N.W.Europe North Africa Southern Cone Russia / Caspian Operated World class operational excellence Maximum efficiency Minimum downtime Non operated Highest possible involvement Knowledge platform/ sharing Long term partnerships Wintershall operates 60% of its total production Core regions / partners 60% 23

24 The pipeline is full Major development projects Germany Mittelplate Infill Drilling Leer Tight Gas Development Emlichheim Steam Injection Netherlands E18-7 Development Q2-A Development P9-A Development Russia Achimgaz (Phase I) Achimgaz (Phase II) Yuzhno Russkoye Core region OPCO Production and / or Exploration Argentina Aguada Pichana Inf. Drill. Aguada Pichana North Rincon Chico North Libya Al Jurf (Phase II) C97 Water Injection As Sarah (Phase VI) 24

25 Project developments will drive production to new level Production in million boe 150 5% CAGR ~ E 25

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