Norway BU presentation to investors (ppt, 2009KB)

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  • CONCLUSIONS: BP sees many new opportunities in Norway as we have positioned ourselves for profitability and growth, and as the Norwegian government is positioning the NCS and Norw. industry for a global, liberalised and more competitive environment – both in Norway and abroad. The way politics seems to be moving in Norway is likely to create opportunities for further growth – such as the state’s plan to provatise Statoil and sell parts of its own assets (SDFI). Today we do not hold interest in the major N orwegian gas pipelines. More open access would be good for us. and also the proposal to open up the gas infrastructure for equal access.
  • March shape update
  • March shape update
  • Norway BU presentation to investors (ppt, 2009KB)

    1. 1. Norway BU presentation to investors bp
    2. 2. Growing from a firm foundation 1998 1999 2000 2001 Marginal operations Moderate position and influence in Norway Gained scale Cut costs Getting the basics right Installed fiber optic cable Step change license awards Royalty relief Sanction Tambar <ul><li>Sanctioned projects </li></ul><ul><li>Valhall drilling </li></ul><ul><li>Ula drilling </li></ul><ul><li>Gyda drilling </li></ul><ul><li>Valhall WIP </li></ul><ul><li>Initiated power cable </li></ul><ul><li>study </li></ul><ul><li>Positioned for gas </li></ul><ul><li>Purchased Ulapipe </li></ul>Positioned for environmental changes Confirming Skarv Driiling Havsule Sanction Valhall Flank project
    3. 3. A changing business environment Focus on politics =suboptimal solutions? = cost overruns Too much Statoil = SDFI Huge t-o-p gas deals by Statoil, = later GFU 1986 price fall = tax cut = new investments Majors complain, .....but remain MARKET OPPORTUNITIES KNOCKS Little awareness in Norway ” Let the foreigners do this” Industry boom by private enterprise but then.... State takes control through Statoil, NPD, regulati-ons and the taxman Send in the state 1960’s 1970’s 1980’s 1990’s 2000’s New areas opens =competition for capital and people Improved t&c Norw. industry sees need to compete abroad BP Statoil alliance wins strong positions Gov. accpets EU liberalisation of licensing and purchasing Further t&c improvements royalty, CO2 tax Parliament cuts red tape SDFI sale, Statoil privatisation Gov. accept EU gas liberalisation GFU will go Cuts Statoil dom- inance in gas transport NEW MARKET OPPORTUNITIES Level of liberal business environment Time Oklahoma pioneers Politics before value? Commercial thinking Global positioning
    4. 4. Strategy: Growth and profitability <ul><li>Build on merger synergies </li></ul><ul><li>Maximise base value and recovery </li></ul><ul><li>Monetise discoveries </li></ul><ul><li>Become a leading player in Norwegian gas </li></ul>
    5. 5. BP global u pstream p roduction 0 2000 3000 4000 5000 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 7% 5.5% Production mboed Source: BP d ata Base Like for l ike adjustment New p rojects
    6. 6. Valhall – growing a mature asset 0 5 10 15 20 25 30 35 40 45 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 mboed Base Water injection Flank development VALHALL PRODUCTION PROFILE VALHALL RESERVES GROWTH 0 50 100 150 200 250 300 350 Ultimate r eserves (mmstb) BP Net Reserves (BP - 28.1%) 67 +50 +35 +10 +30 +75 267 Original r eserves Horizontal w ells Seismic Advanced c ompletions ERD (Drilling) IOR Current r eserves
    7. 7. New projects B P N 0 0 4 1 6 . f h 8 2 / 1 1 / 3 8 / 1 0 7 / 1 2 P L 0 6 5 ( T a m b a r ) B P A m o c o : 5 5 % S D F I ( S t a t e ) : 3 0 % 1 5 % T A M B A R 0 10 20 30 40 50 60 70 80 90 100 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 mboed Base Tambar Ula wag PRODUCTION PROFILE Shell P L 0 1 9 C P L 0 1 9 C P L 0 1 9 A P L 0 1 9 B P L 0 1 9 B P L 0 1 9 C P L 0 6 5 P L 0 6 5 G Y D A T o E K O F I S K U L A T a m b a r - U l a : 1 6 k m T a m b a r - G y d a : 1 1 . 5 k m T a m b a r - E k o f i s k : 5 0 k m O i l e x p o r t G a s e x p o r t M u l t i p h a s e
    8. 8. Gas demand growth 74 104 1999 2010 CAGR = 3.2% Americas 44 68 CAGR = 4.1% Asia & Middle East 1999 2010 Source: DRI, 4th quarter 1999 Bcf/d 38 52 CAGR = 2.8% Europe 1999 2010 0 2 4 6 8 10 12 14 UK Germany France Netherlands Belgium Poland Austria Czech Hungary bcf/d 2000 2010
    9. 9. UK supply-demand Undiscovered Discoveries Existing f ields (BCM/year) Source: Wood Mackenzie 0 25 50 75 100 125 150 175 1990 1995 2000 2005 2010 2015 2020 High d emand plus e xports Low d emand plus e xports
    10. 10. Norwegian gas reserves Total: 200 Tcf Shell 2,8 % Statoil 9,5 % TFE 3,9 % Others 2,5 % YTF 42,6 % SDFI 27,3 % BP 1,2 % Norsk Hydro 6,9 % ExxonMobil 2,7 % Phillips 0,5 % Source: WoodMac and NPD 11% of YTF is licensed, whereof BP holds 18%
    11. 11. BP – Positioned to grow in gas Exploration Discoveries Production Non BP acreage
    12. 12. Skarv development 400 m <ul><li>Plan for development and operation 1Q/02 </li></ul><ul><li>First production 4Q/04 </li></ul>Development cost NOK 11-13 billion FPSO 48 % Subsea 2 6 % Drilling 26 %
    13. 13. <ul><li>World-class potential 10- 15+ TCF </li></ul><ul><li>Currently determining most optimal development plan </li></ul><ul><li>Additional 1 or 2 appraisal wells required </li></ul><ul><li>Field will likely be developed with Spar or Semi </li></ul><ul><li>Production start-up in 2007 +/- 1 year </li></ul><ul><li>BP supports early positioning of OL in gas market </li></ul><ul><li>Forecast plateau rate of 15 BCMA </li></ul><ul><li>BP net interest of circa 10% anticipated </li></ul>Ormen Lange
    14. 14. Summary <ul><li>Used the opportunity of the merger to reshape our business </li></ul><ul><ul><li>Profitability enhanced </li></ul></ul><ul><ul><li>Foundation for growth </li></ul></ul><ul><li>We are growing </li></ul><ul><li>Positioned to seize the opportunities coming from a changing Norwegian business environment </li></ul><ul><li>En route to being a leading gas player in Norway </li></ul>

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