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The A.P. Moller – Maersk Group was established in 1904… First liner service between US and Asia First tanker vessel added Dansk Supermarked First oil in to the Maersk fleet (retail business) established Denmark1904 1928 1962 1964 1972 1972 Maersk DrillingCompany Maersk Oil established establishedestablished and Danish oil and gas activities initiated P&O Nedlloyd acquired First gas export in First oil in Oil and gas interests Denmark Algeria acquired in the UK1975 1984 1994 1998 1999 2005 2011First containerised First oil in Qatar Safmarine and Oil and gas interestsvessels Sea-Land acquired acquired in the US Gulf of Mexico & Brazil
…and today The A.P. Moller - Maersk Group is a worldwide conglomerate. We operate in some 130 countries and have a workforce of some 108,000 employees. In addition to owning one of the world’s largest shipping companies, we’re involved in a wide range of activities in the energy, logistics, retail and manufacturing industries.2012
Annual Report 2011 Revenue in USD million 2011 2010 APMM 60,230 56,090 Maersk Oil 12,616 10,250 Net result in USD million 2011 2010 APMM 3,377 5,018 Maersk Oil 2,061 1,659 Maersk Oil is a central part of the A.P. Moller – Maersk Group, and has a track record of turning challenging oil and gas fields into commercial successes. Maersk Oil focuses on pioneering technologies to operate safely, creating value for partners and host governments.
Maersk Oil history Maersk Oil increases oil production1962 Establishment of the and expands geographically:Dansk Undergrunds 2002 KazakhstanConsortium (DUC) and 2005 Angola, Norway and the UKawarded the concession 1972 First oil 2006 The U.S. Gulf of Mexicofor the Danish North Sea production in 1984 First gas the Danish 2007 Brazil1966 First discovery in from exports North Sea, the from a Danish 2010 Greenlandthe Danish North Sea at Dan field field, Tyra 2011 Abu Dhabithe Kraka field1960s: 1970s: 1980s: 1990s: 2000s: 1975 Maersk Oil became 1990 Maersk Oil enters Algeria operator of the DUC as non-operator Exploration and field 1992 Maersk Oil signs EPSA development in Denmark agreement with Qatar continues 1994 First oil from Qatar’s giant Al Shaheen field 1994 Maersk Oil breaks first of several horizontal well length records
Company visionMaersk Oil: The natural upstream oil and gas partner; navigatingcomplexity, unlocking potential.
Maersk Oil: the natural upstream oil and gas partner Downstream Midstream Upstream Exploration and appraisal Development Field Production Abandonment Exploration & Economic Development Drilling and ProductionLease acquisition evaluation planning completion facilities
Maersk Oil operates around 625,000 barrelsof oil and gas equivalent per day Greenland Norway 1,000 bbls oil equivalent per day United Kingdom Denmark Kazakhstan 900 Iraq Algeria 800 USA Qatar Abu-Dhabi 700 600 500 Angola 400 Brazil 300 200 100 Qatar 0Operated and Non-Operated Production Kazakhstan 2001 2003 2005 2007 2009 2011Exploration and development activities only UK DenmarkNavigating complexity, unlocking potential
Maersk Oil is among the top 30 independentoil and gas producing companies worldwide National oil International Majors companies independents
ValuesAt the heart of Maersk Oil are the A.P. Moller – Maersk Group values• Constant Care Take care of today, actively prepare for tomorrow• Humbleness Listen, learn, share, give space to others• Uprightness Our word is our bond• Our employees The right environment for the right people• Our name The sum of our values, passionately striving higher
Our over 3,200 staff members benefit from: • An innovative environment with in-depth technical expertise • Room for individuality and diversity • Early responsibility and empowerment • Reward for high performance • Worldwide career opportunities • A graduate programme combining on the job training and business acumen • Over 30 years of offshore operational expertise • Over 15 years of international production operations • More than 220 geoscientists and 600 engineersProgressive technical ladders and career development planssupport employee and company objectives
Maersk Oil is known for: • Turning marginal and challenging fields into commercial successes • Executing large and complex projects on time and budget • Extending technical and operational performance through innovation • Deployment of technology • Quick and agile decision-making thanks to a lean organisation • Financial power of a major, financial clout and global relations of a super major due to extensive Maersk Group leverage.Core Competencies
Maersk Oil has used innovation to push its operational performance • Horizontal well drilling technology – we are the true pioneers of this expertise • Well completion and production technology has added a new dimension in cost effective reservoir management • Maximum integration and flexibility between different field developments - key in Denmark and the UK • Platform design e.g. Maersk Oil patented the unmanned Star platform reducing field development costs considerably.Innovative solutions
Safety is our number one priorityMaersk Oil is committed to Incident Key elements in Maersk Oil’s HSE policy:Free operations. This commitmentis underpinned by two initiatives: An incident-free operation Safety prioritised over oil production or economic efficiency• Leading Safety targets the human elementin safety issues, looking at the culture and Safety training emphasisedbehaviour of the workforce and training people Constant review of safety proceduresto be more safety aware. Promote an open culture where people feel• Process Safety targets the process free to express themselves on HSE issueselement of operations and includes managementof safety systems, design and engineering of Reward people for intervening when theyfacilities and equipment and hazard identification see a safety hazard.and assessment.Incident-Free Maersk Oil
Responsible approach to the environmentCO2 emission reduction Managing our impacts: Systems and•Member of World Banks Gas FlaringReduction Partnership since 2009. Preparedness•Significant cut in flaring in past years, Main operating units adhere to thebeing on target for 50% reduction by 2012 international ISO 14001 standard forcompared with 2007 levels. Environmental Management.•Between 2009 and 2010 CO2 emissionsper unit of production went down by 20%. Oil Spill Preparedness: New enhanced risk assessments on all new wells,•Maersk Oil is currently discussing with strengthening of critical standards for wellpotential partners opportunities for storing barriers and specifications for well controlCO2 emissions from power plants equipment in response to the lessonsunderground (CCS), both onshore and learned with the GOM Macondo incident.offshore.Environment
Our challenges • Strong demand for oil and gas • Operational environment more challenging • Increased drive for sound environmental performance • Battle for talent Our solutions • Strategic partnerships with a clear value proposition • Innovation • Focus on running a safe and environmentally responsible operation • Early responsibility in an agile organisationWe believe that we have a significant role to play inthe future security of energy supply to the world
Denmark• Entered in 1962, first oil in 1972• Partners: Shell and Chevron, Maersk Oil is the operator• Production of approx. 200,000 barrels of oil/day and up to 700 million cubic feet export gas/day• 15 fields and 50 platforms• 2-3 drilling rigs in operation• More than 1,000 people employed.
Qatar• Entered in 1992, first oil in 1994• Partner: Qatar Petroleum, 100% equity stake by Maersk Oil• Production of 300,000 barrels of oil/day• Some 30 platforms• 2-4 drilling rigs in operation• More than 600 people employed.
UnitedKingdom• Entered in 2005• Multiple partnerships• Production of some 40,000 barrels of oil/day• 14 oil and gas fields in production• Maersk Oil operator of 7 producing fields and involved in 50 exploration licences• Several discoveries under evaluation including Golden Eagle, Culzean and Flyndre• About 350 people employed.
Kazakhstan• Entered in 2000, production in 2002• Partners: Arawak, Partex and Oman Oil• Production of some 7,000 barrels of oil/day• Embarking on Field Development Plan which will increase production to 30,000 boepd• About 270 people employed.
Algeria• Entered in 1990• Anadarko operator with Sonatrach, Eni and Maersk Oil as non-operating partners• Maersk Oil has a production share of 23,000 barrels of oil per day• 15 producing fields• Maersk Oil has been involved in 33 exploration wells and 19 discoveries• Development of the El Merk project is in progress with production planned to start in 2012 and an expected 11,000 boepd.
Deepwater explorationactivities in Angola• Entered in 2005• Partners: Sonangol, Devon, Odebrecht and Svenska• Block 16: Field Development Plan being prepared for Chissonga• Block 23: Azul 1 well makes discovery, analysis ongoing• 3D seismic surveys in Blocks 8 and exploration drilling underway in Block 23• Exploration and appraisal drilling planned for 2012-2013 on blocks 8, 16, 23.
Exploration activitiesin Brazil taking off• Entered in 2001• Partners: Petrobras, BP, OGX, Anadarko, Videocon and Bharat• In 2010, bought Brazilian assets of SK Energy including 3 licences• 2 operated and 6 non-operated licences• 2 operated and up to 6 non-operated exploration wells to be drilled in 2011-2012• Polvo production: non-operated with Maersk Oil’s entitlement at 8,000 boepd out of a total 20,000 boepd.
Greenland – harshenvironment, bigpotential• Entered in 2010• Partner: Nunaoil with a 12.5% share• Exploration activities in offshore block 9, Baffin Bay• Ice studies and environmental assessments to be carried out including establishment of a shore- based environmental field laboratory• Drilling activities expected to start in 3 years at the earliest• Office in Nuuk.
Developing deepwatercapabilities in US GoM• Entered in 2006• Exploration agreement with 3 deepwater operators: Chevron, ExxonMobil and Hess• Will participate in 10 exploration wells as non-operator in 2011• Deepwater discovery (Buckskin) to be appraised• Acquired 25% interest in the Jack development project in 2010 with production start in 2014; expected 9,000 boepd• In 2010, Maersk Oil acquired 62 leases in the Central US GoM and participates in some 200 leases in the US Gulf in total.
Growth inNorway continues • Established in 2003 • 19 licenses including 6 operated • 3 discoveries to be developed: Flyndre, Avaldsnes and Zidane • First operated well in 2012 (T-rex) • Partners: Bridge, Dana, Edison, Faroe, Lundin, Noreco, Petoro, RWE, Statoil, VNG and Wintershall • 6 wells planned for drilling in 2012 including the second operated Albert well.