Presentation to the Timor-Leste International Petroleum Conference Sr. James Kernaghan Timor-Leste Area Manager Slide No: 1 Woodside Energy Ltd Dili - March 2003
Woodside Energy Ltd, the Company Formed in 1954 to explore for oil in south east Australia. Today, Australia s largest oil & gas exploration and production company. High quality producing assets: North West Shelf Venture & Laminaria / Corallina, Legendre. Strong development opportunities: Sunrise, Kuda Tasi & Jahal, Otway Basin, Enfield, Chinguetti & Blacktip. Strong exploration portfolio: Timor Sea, Australia, Mauritania, Gulf of Mexico. Active in the Timor Sea since 1963. Slide No: 2
Slide No: 3 Woodside s s North West Shelf Project
Slide No: 4 Woodside s s North West Shelf Project
Woodside s Timor Sea History Permit Interests 1963-1966 Dili Kupang OP90 (2) 1963 OP132 1965 PE238 H 1966 OP90 (1) 1963 Slide No: 5 Woodside Permit Interests 0 50 100 Kilometres
Woodside s Timor Sea History Permit Interests 1966-1975 Dili Sunrise / Troubadour 1972 Seabed Boundary NT/P12 Kupang NT/P8 WA-36 36-P NT/P11 Slide No: 6 Woodside Permit Interests 0 50 100 Kilometres
Woodside s Timor Sea History Permit Interests 1991 Dili NT/P55 Sunrise / Troubadour 1972 Seabed Boundary Kupang AC/P8 91-03 91-04 NT/P12 Zone of Co-operation operation Exclusive Economic Zone (1997) Fisheries Boundary (1981) Darwin Slide No: 7 Woodside Permit Interests 0 50 100 Kilometres
Woodside s Timor Sea History Permit Interests 2003 Dili 96-20 NT/P55 Sunrise / Troubadour NT/RL2 1972 Seabed Boundary Kupang Laminaria AC/P8 Jahal & Kuda Tasi 91-01 94-07 95-19 Evans Shoal Exclusive Economic Zone (1997) Fisheries Boundary (1981) AC/RL5 Joint Petroleum Development Area Darwin Blacktip Slide No: 8 Woodside Permit Interests 0 50 100 Kilometres
Slide No: 9 Timor Sea Gas Reserves - 2003
Slide No: 10
Slide No: 11 Project Status - March 2003 Reserves approximately 7.68 Trillion cubic feet of gas and 299 MMbbl condensate. Targeting the Asia Pacific LNG market, including west coast North America. Woodside s preferred development concept is floating LNG production facility at Sunrise field. Project requires legal and fiscal certainty and stability - Timor Sea Treaty & International Unitisation Agreement. Joint Venturers have spent US$100 million since 1974,when the first well was drilled (Sunrise #1) and Sunrise discovered. Basis of Design decision (US$100 million) due when legal, fiscal and market certainty achieved.
Slide No: 12 Floating LNG Development Concept
Slide No: 13 Sunrise Gas - Floating LNG Option
Project Needs - March 2003 Ratification of the Timor Sea Treaty Agreement and ratification of an International Unitisation Agreement (IUA) on Sunrise - certainty of jurisdiction and regulatory regime - certainty and stability for life of Project - fair and equitable, between Governments and between Governments and the Project - without prejudice to future settlement of seabed borders Re-issue of Production Sharing Contracts Slide No: 14 Signing of Gas Sales Contracts with Asia Pacific LNG Customer
Global LNG Supply - Two Regions Snøhvit USA Alaska Kenai Libya Qatar North Field Egypt Iran Russia Sakhalin Pacific LNG Venezuela Trinidad Atlantic Algeria Arzew,Skikda Nigeria Bonny Marsa-el-Brega Angola Yemen Abu Dhabi Das Island Oman Arun Indonesia Bayu Undan Gorgon Brunei - Lumut Malaysia - Bintulu Indonesia Bontang Indonesia Tangguh East Timor (Sunrise) Atlantic LNG Australia- North West Shelf Existing LNG Plants/Expansions Planned Greenfield Projects Possible Greenfield Projects Pacific LNG Source: WoodMackenzie 2001 Slide No: 15
International Unitisation Agreement An International Unitisation Agreement is an agreement about how two countries share a petroleum resource across an international boundary and how the commercialisation of the resource is regulated. In this case, where the Greater Sunrise reserves straddle the boundary of the Joint Petroleum Development Area. NT/P55 Sunrise 96-20 95-19 NT/RL2 Slide No: 16 Joint Petroleum Development Area Troubadour
Future (?) of Sunrise Year *approx. 2003 2003-04 2004-05 2005-08 2008-09 Project Status Resolution of Legal, Fiscal and Regulatory uncertainty. Signing of agreements with Asia Pacific LNG Customer? Basis of Design (BOD) decision on preferred development concept & secure markets for LNG. Final Investment Decision (FID) Construction and installation Phase. Commissioning and first gas. Slide No: 17 Total investment US$3 billion
Kuda Tasi & Jahal 40% Operator 35% 25% INPEX Slide No: 18
Kuda Tasi & Jahal JPDA Permit 91-01 0 25 50 Kilometres 96-20 NT/P55 Sunrise / Troubadour 1972 Seabed Boundary 96-20 NT/RL2 95-19 Woodside Permit Interests Laminaria AC/P8 AC/RL5 91-01 Kuda Tasi & Jahal JPDA 94-07 Slide No: 19 Fisheries Boundary (1981) Exclusive Economic Zone (1997)
Kuda Tasi & Jahal Oil Reserves Kuda Tasi & Jahal are small oil discoveries in the JPDA PSC 91-01 that could be developed. Commercialisation of these opportunities relies heavily on the use of existing facilities in the region as they are not economic to develop on their own. There is a limited time-frame for to capture this opportunity Kuda Tasi & Jahal - mid 2003 for Final Investment Decision. Commercialisation of Kuda Tasi and Jahal will require fiscal and regulatory certainty and stability in the JPDA. Slide No: 20 Kuda Tasi & Jahal is an opportunity for Timor-Leste that could provide first oil and revenues as early as 2005-6.
Slide No: 21 Northern Endeavour FPSO
Slide No: 22 Woodside and Society
Woodside and Society Corporate Giving Philosophy: Making a difference for young people While Woodside has developing and production interests in Timor-Leste, we will continue to work with government and the community in seeking ways in which we can assist communities to pursue their aspirations for youth and community development. Slide No: 23
Woodside and Society Community Based Activities to date: Emergency assistance in food packs, field medical kits, Darwin storage facilities and donation of bedding (Woodside Corporate, Darwin Office and Laminaria) Financial assistance for the retrieval, cataloguing and storage of the collection from the Dili Museum (with the NT Museum- Woodside / Shell) Financial assistance to the community in Comoro in rebuilding houses (with the NGO Project Timor - Woodside / Shell) Slide No: 24 Provision of buses to Universidade Nacionale de Timor Loro Sae for student transport (directly between Woodside, UNATIL and Education Department - Sunrise Gas).
Woodside and Society Founding Member and contributor to Steering Committee for the Petroleum Related, Education, Training and Employment for the people of Timor Leste - in the oil and gas industry and related ET government administration (Sunrise Gas). Provision of second hand computers to schools in Timor- Leste (Woodside Shared Services). Provision of Sunrise Gas Project soccer balls (550) to schools and emerging soccer clubs in Timor-Leste (Sunrise Gas Project / AFAP / Timor Aid). Major sponsor of the Timor-Leste Independence Ceremony (Woodside, Shell and Osaka Gas). Slide No: 25
Woodside and Society Sustainable Development Program Woodside and Shell (as FLNG proponent) are undertaking a series of studies to measure and manage the social and economic impact of the Project in Timor-Leste and the Northern Territory of Australia. These include: Phase 1 (2002-3): Phase 2 (200?): Phase 3 (200?): Social and Health Baseline Studies Social and Health Impact Studies Sustainable Development Plan Slide No: 26
Obrigado Any Questions? Woodside Energy Ltd March 2003 Slide No: 27