SWEDBANK SUMMIT. Det norske presentation. Oslo, 20 March 2014

Transcription

1 SWEDBANK SUMMIT Det norske presentation Oslo, 20 March 2014

2 Building a company for the future Strong production growth Current production ~4,000 boepd (Jette, Atla, Jotun, Varg) Ivar Aasen and Johan Sverdrup to transform the company Norwegian footprint Successful explorer Resources obtained through exploration activity Will continue to be an active explorer Strong financial platform USD 1,000 revolving credit facility + USD 1,000 accordion Two bonds totaling NOK 2.5 billion outstanding Only active on the Norwegian shelf Always moving forward to create value on the Norwegian shelf 2

3 Successfully grown through exploration Det norske is built on exploration success and should continue to explore, based on a focused and value-driven strategy Johan Sverdrup 2019 Ivar Aasen 2016 Jette 2013 Discovered: 2011 On-stream: 2019 Atla 2012 Discovered: 2008 On-stream: 2016 Discovered: 2009 On-stream: 2013 Discovered:2010 On-stream:

4 Significant potential on the NCS Exploration potential Access to acreage Stable framework Undiscovered resources Billion boe 5,3 4,9 6,0 1,9 0,6 19 billion barrels of oil equivalents undiscovered 43% of resources on NCS produced Recent success in Barents Sea with play openers Wisting/Gotha Opportunities in APA and ordinary rounds Opening Barents Sea South East Expected opening of Lofoten/ Vesterålen, although area closed for next four years Stable framework and fiscal regime, although recent tax change was unexpected Cash back on exploration costs and incentives such as APA rounds Source: NPD 4

5 Firm wells 12 month drilling plan* Prospect Share mmboe Operator Rig Q Q Q Q PL 102C Trell 10% Total Leiv Eriksson PL 659 Langlitinden PL 265 JS Geitungen 20%** Det norske 20% Appr. Statoil Trans. Barents Ocean Vanguard PL 550 Gotama 10% Tullow Oil PL 558 Terne 20% E.ON Borgland Dolphin Borgland Dolphin PL 494 Heimdalshøe PL 554 Garantiana 2 30% Det norske 20% Appr. Total Maersk Giant Leiv Eriksson PL 553 Kvitvola 40% Det norske PL 492 Gohta 2 40% Appr. Lundin Borgland Dolphin Island Innovator *Please note that the drilling plan is often subject to changes due to rig planning etc. ** Subject to Government approval Partner operated wells Det norske operated wells 5

6 SWEDBANK SUMMIT OPERATIONAL UPDATE

7 Det norske s position on the Utsira High Johan Sverdrup PL 265: Det norske 20% Statoil (Op) 40% Petoro 30% Lundin 10% Ivar Aasen PL 001B/028B/242 Det norske (Op) 35% Statoil 50% Bayerngas 15% Johan Sverdrup PL 501: Lundin (Op) 40% Statoil 40% Mærsk 20% Johan Sverdrup PL 502: Det norske 22% Statoil (Op) 45% Petoro 33% Utsira High area 7

8 SWEDBANK SUMMIT IVAR AASEN

9 The Ivar Aasen development project Legg inn Ivar Aasenfilmen 9

10 Ivar Aasen on schedule The Ivar Aasen project Project is on schedule and on cost first oil Q First steel cut for both topsides and the jacket Fabrication of the topsides primary structural steel members commenced First steel cut in Singapore When 1H H H H H H H H 2016 What Approval of development Detailed design of jacket and topside Start-up of construction jacket Start-up of construction topside Start-up of construction living quarters Jacket lifted into place Mærsk starts drilling of production wells Installation of pipelines Construction to leave shipyard for the North Sea Installation of topside Installation of living quarters Operations centre being prepared Production start-up 10

11 SWEDBANK SUMMIT JOHAN SVERDRUP CONCEPT

12 Johan Sverdrup Father of Norwegian modern parliamentarism ( all power to this hall ) Founder of Norways first political party (Venstre/Liberals) Instrumental in Norway s independence struggle 12

13 Another giant on the NCS Share of total NCS production Ekofisk Statfjord Oseberg Troll Johan Sverdrup on plateau Remaining production on the NCS when JS on plateau Johan Sverdrup Pictures: NPD, Statoil/Det norske 13

14 The development concept is decided Resources: Between 1,800 and 2,900 mmboe Ambition to increase the recovery rate from ~60% to to ~70% Capacity: Production capacity in the first phase will be between 315,000 and 380,000 boepd More than 70% of the total resources from the first phase facilities Plateau production level of 550, ,000 boepd Costs: NOK billion for the first phase Includes also contingencies and provisions for market adjustments Includes the field centre, wells, export solutions and power supply, subsea templates and infield pipelines Field centre location 14

15 First phase field centre Riser platform: Centre for export and incoming volumes from future tie-backs and satellite wells risers and J-tubes Size: 125x30m, 19k tonnes Drilling platform: 48 slots, well intervention deck and manifolds Size: 83x40m, 15k tonnes Pre-drilling by semi-sub Process platform: 315k-380k boepd Size: 100x23m, 23k tonnes Separation and injection systems Living quarter: 450 cabins, control room, utility and control system Size: 85x28m, 17k tonnes Wells: Three subsea water injection templates planned production and water injection wells planned for phase 1, of which wells will be pre-drilled from

16 Geitungen appraisal well planned Geitungen appraisal Geitungen appraisal well in PL 265 planned for Q Objective: Oil water contact and down flank properties Concludes the appraisal programme in PL 265 Geitungen appraisal Programme ~30 wells drilled PL /3-8 S PL 502

17 Milestones December 2013 FEED contract for phase 1 awarded to Aker Solutions February 2014 Decision Gate 2 passed Q Phase 1 PDO submittal to the authorities and unitisation process finalised Q Phase 1 PDO approval Construction & Installation Q First oil production 17

18 Always moving forward Towards a leading independent oil company on the NCS 18

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20 Fiscal regime protects downside Exploration Field development 100 % 90 % 80 % Company 22% Equity 26% 100 % 90 % 80 % Company 11% Uplift 11% (4y depreciation) Equity 70 % 70 % 60 % 50 % 40 % 30 % Tax refund 78% Debt 74% 60 % 50 % 40 % 30 % SPT 51% (6 year depreciation) Debt 20 % 10 % 20 % 10 % Corp. tax 27% (6 year depreciation) 0 % Costs Tax position Typical funding 0 % Investment Tax position Possible funding Tax refund instantly monetized Cash tax refund for exploration drilling irrespective outcome of well 78% of cost Cash tax refund pledged to bank, LTV of 90 95% of claim Tax refund as value build-up on balance Tax credits effectively 89% of field investments Tax balance built in parallel with investment No field ring-fencing The tax value of the tax balance and tax deprecation carried forward will be refunded if petroleum activities are discontinued 20

21 Oil and gas production last 12 months Jette Varg Glitne Jotun Atla Average production in Q of 4,328 boepd Total production in Q of 398,000 boe jan. 13 feb. 13 mar. 13 apr. 13 mai. 13 jun. 13 jul. 13 aug. 13 sep. 13 okt. 13 nov. 13 des

22 Key financials Production (boepd) net to Det norske Q Q Production (boepd) Jette Atla Varg Jotun Unit Glitne - 75 Total production per day Total production in period (Kboe) Atla 24 % Varg 9 % Jotun 3 % Jette 63 % Cash flow from production Q Q Realised oil price (USD/bbl)) Revenues (MNOK) Cash flow from production (MNOK)

23 Statement of income Income statement (NOK mill) Q Q Q Revenues Production costs EBITDAX Exploration expenses Payroll and payroll-related expenses 4-4 Other operating expenses EBITDA (400) (174) (348) Depreciation Impairment losses Operating profit/loss (EBIT) (1 182) (358) (518) Net financial items (106) (14) (131) Profit/loss before taxes (1 288) (372) (649) Tax income Net profit/loss (329) (47) (158) 23

24 Statement of financial position Assets (NOK mill) Intangible assets Property, plant and equipment Calculated tax receivables (long) Deferred tax asset 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 incl. P&A (long) Bonds Revolving credit facility Exploration facility Creditors, other current liabilities incl. P&A (short) Total Equity and Liabilities

25 Debt funding Committed and uncommitted debt financing end of period (excluding the exploration facility) - MNOK RCF uncommitted accordion RCF committed Bond DETNOR01 Bond DETNOR Ivar Aasen production start Johan Sverdrup production start 25

26 Strong liquidity position going forward Net debt Liquidity position Cash Tax refund 2014 RCF EFF Bonds Working Capital Net debt MNOK Cash and tax refund Debt and working capital Net debt Add back bond/rcf RCF available Accordion new RCF Liquidity 26