OIL SEARCH STEPPING UP TO THE CHALLENGE 15 TH PNG MINING & PETROLEUM INVESTMENT CONFERENCE. December

Transcription

1 OIL SEARCH STEPPING UP TO THE CHALLENGE 15 TH PNG MINING & PETROLEUM INVESTMENT CONFERENCE December 2018 OIL SEARCH LIMITED ARBN ASX: OSH POMSoX: OSH US ADR: OISHY

2 HOW DID WE STEP UP TO THE CHALLENGE FOLLOWING THE EARTHQUAKE? Relief efforts: first responder role Operated facilities: managing the road to recovery Respond Recover Operate Business as usual Without incurring a single recordable incident. STEPPING UP TO THE CHALLENGE PAGE 2

3 EARTHQUAKE REMINDER 7.5 magnitude earthquake in February Moran / Agogo / APF complex Last earthquake of similar magnitude more than 100 years ago. More than 200 aftershocks many >4.0 and some >6.0 Gobe / GPF complex Occurred in the Oil Search and ExxonMobil area of operation. Kutubu / CPF complex No fatalities or serious injuries sustained by our employees or contractors STEPPING UP TO THE CHALLENGE PAGE 3

4 SOCIAL IMPACTS RIVERS, CROPS AND VILLAGES DAMAGED Mountain sides collapsed filling rivers Villages and homes slid off the edge of mountains Communities significantly affected: Many deaths and injuries Destruction of homes, gardens and livelihood Destruction of social infrastructure including schools, roads, bridges Loss of basic necessities o Food, water, shelter Survival was the first priority Oil Search First Responder STEPPING UP TO THE CHALLENGE PAGE 4

5 HIGHLANDS EARTHQUAKE OIL SEARCH AT FOREFRONT OF RELIEF EFFORTS Oil Search relief efforts: First Responder role (one of few organisations in PNG with ability to provide rapid on-the-ground assistance) Our Moro logistical base coordination point for delivery and distribution of aid Oil Search Foundation (OSF), in partnership with Oil Search and other companies that donated funds, played a leading role in aid delivery to impacted communities UN estimates that we delivered almost 80 per cent of total food supplies to impacted areas in first four weeks after earthquake STEPPING UP TO THE CHALLENGE PAGE 5

6 HIGHLANDS EARTHQUAKE VISUALISING THE IMPACT OSH Earthquake Response Video (PNG Field) OSH Earthquake Response Video (Port Moresby) STEPPING UP TO THE CHALLENGE PAGE 6

7 DEVASTATION IN PERSPECTIVE OUR OPERATIONS, PRODUCTION Short term human impact loss of basic life support systems (water, power, sewage) Destruction of, or damage to, accommodation, messing, power, water and sanitation at camps. Access to Kutubu and Hides lost as Highlands Highway and Southern logistics routes blocked by landslides and bridge damage. Infield roads also blocked. Agogo Processing Facility (APF) and Refinery damaged. Limited damage to Central Processing Facility (CPF) and Hides GTE. STEPPING UP TO THE CHALLENGE PAGE 7

8 OIL FACILITIES DAMAGE THIS IS WHAT WE FACED. Clockwise from top left: APF HP Compressor cable trays Refinery Control Room APF compressor pipework misalignment Refinery Firewater Pump STEPPING UP TO THE CHALLENGE PAGE 8

9 OPERATING FACILITIES MANAGING THE ROAD TO RECOVERY Initial response: Ensure all people and plant were safe Respond Recover Operate People evacuated to sustainable level Camp, electricity, water, sanitation unavailable Supply chain disrupted A second dedicated team put in place to execute the our First Responder social programme Export system, Gobe, CPF 26-Feb-18 Mid March End March (export system) Recovery Phase New team created reporting to EGM to manage operational recovery phase Prioritisation and detailed plan put in place STEPPING UP TO THE CHALLENGE PAGE 9

10 ROAD TO RECOVERY PROGRESSIVE RAMP UP IN PRODUCTION Immediate priority was to reestablish gas supply to PNG LNG GAS SUPPLY TO PNGLNG Kutubu Gobe Main SEG Unit Associated Gas (AG) fields supply ~20 per cent of PNG LNG gas Export system, Gobe, Kutubu brought on-line before HGCP Worked together with PNG LNG to optimise start-up OIL PRODUCTION Hides SEG Unit Gobe Main Kutubu Agogo Moran Oil production has progressively increased based on facility rebuild, commissioning: Gobe fields and Kutubu Progressive start-up at Agogo and Moran Moran since start-up: o Initial flush production o Two plant upsets STEPPING UP TO THE CHALLENGE PAGE 10

11 BUSINESS AS USUAL WE CONTINUE TO CHASE OPPORTUNITIES STEPPING UP TO THE CHALLENGE PAGE 11

12 PNG OIL FIELD OPPORTUNITIES Further to our LNG expansion projects, significant low risk opportunities identified to extend production life of the PNG oil fields Potential to extend plateau oil production until and add > 30mmbbl net to OSH Subject to final technical and commercial review, programme commences with workover and drilling activity at Moran and Kutubu in 2019 Moran X M15 M5ST2 M7ST1 M3XST1 Moran X well trajectory STEPPING UP TO THE CHALLENGE PAGE 12

13 OIL OPPORTUNITIES A MIX OF IN-WELLBORE, IN-FIELD AND NEAR-FIELD Development Moran 4, 9 Wells & Work Overs Moran X, O, Q, P IDT 21 Work Overs (2018/19) M4 M9 IDT 21 Wells (2018/19) UDT S UDT H Agogo Forelimb Appraisal UDT S, H Moran C Block Agogo Forelimb Hedinia Forelimb ( ) ( ) ( ) Hedinia Forelimb Moran X Moran O Moran Q Moran P 2 new pads 1-7 producers Huff/puff strategy 1-2 new pads 1-6 producers Huff/puff strategy Increasing Risk STEPPING UP TO THE CHALLENGE PAGE 13

14 KEY LEARNINGS FROM 2018 Splitting the workload (relief efforts, operated facilities, BAU) helped greatly. Leadership and organisational behaviour: Staff, contractors, suppliers adjusted to total change in the operating environment Separated the operations versus development so as not to lose growth focus Executives and senior management led from the front Adaptability People asked to do activities outside of their experiences and knowledge Clear goals, people stepped up, worked as a team, found solutions to problems, outcomes were beyond expectation Values and culture Strength of Oil Search culture shone through Though things were turned upside down, Oil Search achieved no TRI in its operations. Can do attitude permeated organisation with amazing achievements STEPPING UP TO THE CHALLENGE PAGE 14

15 THANK YOU THANK YOU OIL SEARCH LIMITED ARBN ASX: OSH POMSoX: OSH US ADR: OISHY