2009 Summary Review. Continued progress. building three quality businesses

Transcription

1 2009 Summary Review Continued progress building three quality businesses

2 CONTINUED PROGRESS BUILDING THREE QUALITY BUSINESSES 2009 WAS A YEAR OF IMPORTANT ACQUISITIONS, INCREASING PRODUCTION, GREAT STRIDES IN OUR DEVELOPMENT PROJECTS AND SUCCESSFUL EXPLORATION DRILLING. WE HAVE A BUSY AND EXCITING PROGRAMME FOR 2010 WHICH WILL CONTINUE TO BUILD ON OUR THREE GROWING REGIONAL BUSINESSES. Simon Lockett, Chief Executive 2009 HIGHLIGHTS Production increased by 21 per cent to 44.2 kboepd (2008: 36.5 kboepd) Reserves increased by 12 per cent to 255 mmboe (2008: 228 mmboe). Reserves and resources increased to 468 mmboe (2008: 382 mmboe), an increase of 23 per cent Acquisitions completed in the UK and Vietnam now successfully integrated and outperforming expectations Ongoing material progress on the Chim Sáo and Gajah Baru development projects with first oil and gas on schedule for 2011 Five out of nine exploration and appraisal wells drilled were successful, including important discoveries in Norway and Vietnam Record profit after tax of US$113.0 million (2008: US$98.3 million), including effects of tax allowances acquired with Oilexco Operating cash flow of US$347.7 million (2008: US$352.3 million), despite a 37 per cent fall in Brent oil price year-on-year From left to right: Simon Lockett, Chief Executive Tony Durrant, Finance Director Neil Hawkings, Operations Director Andrew Lodge, Exploration Director

3 FINANCIAL STRENGTH Financing in place to fund current development and exploration programme Debt facilities expanded and maturities extended Cash on hand and in escrow and undrawn bank facilities were US$649 million at year-end (2008: US$599 million) CONSISTENT GROWTH IN A VOLATILE MARKET Production Reserves and resources Operating cash flow Profit after tax (kboepd) Reserves Resources (mmboe) ($ million) ($ million) From left to right: Robin Allan, Director Asia Stephen Huddle, Company Secretary Nigel Wilson, North Sea and West Africa Business Unit Manager Tom Clarence-Smith, Middle East-Pakistan Business Unit Manager

4 EXPANDING WORLDWIDE THROUGH THE SKILLS OF OUR PEOPLE IN THREE REGIONAL BUSINESSES. EACH BUSINESS UNIT HAS PRODUCTION, DEVELOPMENT AND EXPLORATION OPERATIONS. IN TOTAL WE MANAGE A GROWING RESERVE AND RESOURCE BASE OF 468 MMBOE PRODUCTION AND DEVELOPMENT 2009 HIGHLIGHTS AND ACHIEVEMENTS Production increased by 21 per cent to 44,200 boepd Substantial progress on 2P development projects at Chim Sáo and Gajah Baru Commercialising contingent resources targeting final sanction in 2010 FORWARD STRATEGY 75,000 boepd by end 2012 from existing projects Targeting further growth from pre-development portfolio EXPLORATION AND NEW VENTURES 2009 HIGHLIGHTS AND ACHIEVEMENTS Nine exploration and appraisal wells in 2009 with five successes Material discoveries in Norway and Vietnam New licences added in UK and Egypt FORWARD STRATEGY Targeting 200 mmboe booked reserve additions Seeking to add significant new drilling opportunities for 2012 onwards SIGNIFICANT ACQUISITIONS 2009 HIGHLIGHTS AND ACHIEVEMENTS Acquisition of Oilexco (UK North Sea) for US$505 million Acquisition of Delek Energy (Vietnam) for US$72 million FORWARD STRATEGY Selective acquisitions in core areas of the North Sea, Asia and Middle East-Pakistan Expanding the company s acreage portfolio for future drilling targets, focusing on geological plays we know well

5 NORTH SEA NORWAY UNITED KINGDOM MIDDLE EAST-PAKISTAN SADR PAKISTAN ASIA EGYPT VIETNAM MAURITANIA INDONESIA CONGO

6 TRANSFORMING OUR ASSET BASE IN THE NORTH SEA FOCUS ON EXTENDING EXISTING POSITIONS TO DELIVER GROWTH

7 Drilling success Bream and Grosbeak 16,200 boepd 2009 production in the North Sea The Oilexco acquisition enhanced reserves, production and cash flow in the North Sea providing the operatorship capability and resources to play a much larger role in the exploitation of resources in the area. Nigel Wilson North Sea and West Africa Business Unit Manager > STRATEGY We seek to maximise output from our current production base and commercialise undeveloped discoveries already held in the portfolio. We will build on our existing position in the North Sea through an active exploration programme in Norway and the UK, participation in new licensing rounds and acquisition of additional assets in the areas which we know well. > 2009 HIGHLIGHTS AND ACHIEVEMENTS US$505m Completed acquisition of Oilexco North Sea Ltd Operatorship in the North Sea was successfully transferred to Premier on acquisition of Oilexco, following recognition by the UK Health and Safety Executive of the high standard of Premier s safety management systems Integration of significant acquired UK assets and human resources into the business Production 16,200 boepd, 74 per cent increase on 2008 Material progress on the Huntington development project in the UK Exploration and appraisal success on Bream and Grosbeak in Norway > OUTLOOK Project sanction on Huntington expected before year-end 2010 Progression of Bream, Bugle/Blackhorse, Frøy and Fife area towards development sanction Eight wells Exploring in the North Sea in 2010 Eight exploration and appraisal wells to be drilled five in Norway, three in the UK, including recent farm-in to Oates prospect

8 UTILISING THE FULL RANGE OF OUR TECHNICAL SKILLS IN ASIA CAPITALISING ON WELL-ESTABLISHED POSITION Activity in Asia is multi-faceted; we are committed to delivering the anticipated production increase from our three development projects, optimising our exploration activity ascertaining the size of the potential resource as efficiently as possible and forging stronger relationships in the region to help us in the execution of all of the above % Acquisition of additional equity in Block 12W, Vietnam Robin Allan Director Asia > STRATEGY We seek to explore and develop the potential of our portfolio of assets in the Natuna Sea, North Sumatra and the Nam Con Son Basin, bringing relationships, knowledge and technical skills to bear and developing new business opportunities in related technical or geographical areas. > 2009 HIGHLIGHTS AND ACHIEVEMENTS No significant health and safety incidents reported during 2009 Material progress ahead of schedule on Chim Sáo and Gajah Baru projects, at reduced cost following retender and re-design Acquisition of additional equity in Chim Sáo for US$72 million Exploration drilling success at Cá Rô`ng Do? -, proving a new hydrocarbon play in the Nam Con Son Basin 83% Chim Sáo jacket completion at year-end > OUTLOOK Development drilling on Chim Sáo from mid-year and Gajah Baru from October 2010 Exploration focus on the Tuna Block in Indonesia; seismic acquisition across new areas of potential in Vietnam

9 US$100m Approximate gross cost saving on Gajah Baru project in First production from Chim Sáo and Gajah Baru scheduled

10 EXPANDING OUR PRESENCE ACROSS THE MIDDLE EAST-PAKISTAN REGION LOOKING TO CAPITALISE ON OUR EXISTING GEOLOGICAL SKILLS IN RIFT BASINS AND FRONTIER FOLD-BELTS

11 8% Increase in production in Pakistan from 2008 to Extension of Kadanwari lease expiry date Our gas production in Pakistan has grown steadily in the past few years, providing a very solid base to the business. We are intent on extending our presence across the Middle East region through acquisition. The recent award, subject to government approval, of a new block in Egypt fits with our exploration strategy of pursuing opportunities of a rift basin or fold-belt nature which will continue across the region in Tom Clarence-Smith Middle East-Pakistan Business Unit Manager > STRATEGY We seek to maximise the value of our Pakistan producing gas fields and extend our technical skills to new regional opportunities. > 2009 HIGHLIGHTS AND ACHIEVEMENTS Record 2009 production in Pakistan exceeding 15,700 boepd Eight new production wells on Qadirpur and three on Zamzama successfully drilled and brought on production Q Compression project at Qadirpur New gas discovered on Kadanwari; 10-year lease extension to 2022 negotiated > OUTLOOK Additional stand-by permeate compressors to be installed on Qadirpur during 2010 Modifications to increase capacity of Phase-2 plant on Zamzama to 150 mmscfd Seeking opportunities across the region, including with our strategic regional partner EIIC

12 BEHIND THE SUCCESS GREAT PEOPLE WORK FOR PREMIER PREMIER S GROWTH AND SUCCESS IS A DIRECT CONSEQUENCE OF THE DYNAMISM, PROFESSIONALISM, CREATIVITY AND TENACITY OF THE PEOPLE WHO WORK FOR US. THEY THRIVE ON NEW CHALLENGES AND IDEAS, AND THE RELATIONSHIPS THEY INSPIRE ARE THE FOUNDATION OF THE BUSINESS. Lee Johnson, Group HR Manager Left to right Suyono, Record Management Co-ordinator Muchlis Yuska, Graphics Assistant Left to right Deddy Wahyudi, Roustabout Muchyi, Deck Foreman Charlyon Paeli, Cargo Technician Left to right Nguyen Tan Cuong, Safety Operation Specialist Tran Thi Van Khanh, Vietnam HR Manager > PREMIER SEEKS TO BE THE EMPLOYER OF CHOICE IN ALL AREAS OF OPERATION. IT PRIDES ITSELF ON A DIVERSE, HIGH-ACHIEVING WORKFORCE, WHICH IS CURRENTLY EXPANDING RAPIDLY TO REFLECT PREMIER S GROWING OPERATIONAL PRESENCE ESPECIALLY IN ASIA. THE COMPANY WILL CONTINUE TO EVOLVE ITS EMPLOYMENT PRACTICES AND POLICIES TO ATTRACT AND RETAIN THE BEST TALENT AND TO DEVELOP ALL STAFF TO THEIR FULL POTENTIAL.

13 Left to right Donnyanto T. Abram, Senior Authorised Electrical Engineer Saeful Muchlis, Instrument & Engineering Technician Sidney Sams, Receptionist Phil Cruickshank, Balmoral Offshore Installations Manager Left to right Welly Ahmad Ramadan, Geologist Abdurahman, Senior Geophysicist Richard Hounsell, Drilling HSE Co-ordinator Mehran I. Mirza, Pakistan Finance Manager

14 AWARENESS AND RESPONSIBILITY IN OUR ACTIONS ONGOING SUCCESS Premier is committed to applying the high ethical standards necessary to maintain our reputation as a world-class operator in oil and gas. Our reputation for doing the right thing enables us to access new licences, enter new countries, build lasting relationships with the local communities and ultimately secure the licence to operate. We recognise that we have a corporate social responsibility towards a diverse group of stakeholders including shareholders, customers, employees, business partners, local communities and society at large, including special interest groups that represent public interest concerns. We also recognise our responsibility to operate with proper regard for the environment and for the health and safety of people who may be affected directly or indirectly by our operations. We are committed to achieving ISO and OHSAS certifications for all our operated activities. > 2009 HIGHLIGHTS We delivered outstanding drilling safety performance groupwide during 2009 and we expect our overall safety performance to be upper quartile according to the International Association of Oil and Gas Producers We retained ISO and OHSAS in both drilling and production functions Since acquiring the operated Balmoral facility in May 2009, we have thoroughly reviewed its environmental performance, and invested in engineering solutions which improved oil in water discharge concentrations by 35 per cent On the operated Anoa platform, we achieved a 15 per cent reduction in greenhouse gas emissions compared to 2008, as a result of our continued efforts to improve compressor reliability and reduce associated gas flaring We have continued to invest in social and community projects in all our countries of operation, including student scholarships, school construction and turtle habitat preservation in Indonesia, health initiatives in Pakistan, and bridge building and bicycle donations in Vietnam

15 BEING AN OIL AND GAS COMPANY BRINGS A SPECIFIC SET OF CHALLENGES TO DOING THE RIGHT THING BUT IT IS PREMIER S PRIORITY TO OPERATE SAFELY, TO MINIMISE OUR IMPACT ON THE ENVIRONMENT AND TO BUILD MUTUALLY BENEFICIAL RELATIONSHIPS WITH COMMUNITIES AND COUNTRIES. THE COMPANY IS AN INDUSTRY LEADER IN THESE MATTERS. Paul Dennis, Group HSES Manager Designed and produced by MAGEE Printed by Fulmar Colour Fulmar Colour is FSC certified, PEFC certified and ISO certified showing that it is committed to all round excellence and improving environmental performance is an important part of this strategy. We aim to reduce at source the effect our operations have on the environment, and are committed to continual improvement, prevention of pollution and compliance with any legislation or industry standards. Fulmar Colour is a Carbon Neutral Printing Company. Cert no. TT-COC The paper in this report contains material sourced from responsibly managed forests, certified in accordance with the FSC (Forest Stewardship Council) and is manufactured to ISO and EMAS (Eco-Management and Audit Scheme) international standards, minimising negative impacts on the environment. ISO REGISTERED DNV Certification BV 013

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