Todd Creeger
President Australia-West
SEAAOC, 20 August 2014
Leveraging our
LNG advantage
in a global market
Cautionary Statement
The following presentation includes forward-looking statements. These
statements relate to future eve...
Project
Overview
3
ConocoPhillips Australia & Timor-Leste Portfolio
4
Australia Pacific LNG
 CSG to LNG project in Queensland
 Constructing 2 x 4.5 MTPA trains, first LNG mid-2015
 ConocoPh...
Bayu-Undan & Darwin LNG Operated by ConocoPhillips
6
ConocoPhillips Exploration & Appraisal Programs
 Understanding reservoir
& assessing commerciality
 Greater Poseidon fie...
Potential Development Options
 Offshore processing facilities and back-fill Darwin LNG
 Floating LNG
 Offshore processi...
Setting the
Scene
9
Australian LNG Projects
 Existing projects: 24.3 MTPA
 North West Shelf (WA), 1989, 16.3 MTPA
 Darwin LNG (NT), 2006, 3...
Australia’s LNG
Advantage
11
Potential in Northern Australia
 Significant discovery volumes, with further appraisal/exploration
12
Source: Wood Macken...
Source: WA Department of Mines & Petroleum and EnergyQuest (July 2013)
*Source: EIA World Shale Gas and Oil Resource Asses...
Liquefaction Capacity v LNG Demand (Source: Wood Mackenzie 2014)
14
If probable, possible and speculative capacity is bui...
Diverging Trends: Evolution Capacity Costs Global LNG Projects
15
“I think two years ago I said there wouldn’t be another...
Leveraging our
Advantage
16
Brownfield Development
 Use existing infrastructure to reduce capital costs
 Leverage operations best practice e.g. expe...
ConocoPhillips Example of Brownfields Advantage
 Darwin LNG
 Cost advantage of tying into
existing infrastructure
 Perm...
Technological Innovation
 Complement not replace existing options
 One Australian project committed: Shell Prelude Proje...
Potential Business Risk: External Influencers
 Environmental groups/NGOs
 Ideologically oppose non-renewable energy sour...
Resources Do Not Equal Development
 Policy makers must think big
 Stable fiscal regimes attract global
investment
 Cutt...
Resources Do Not Equal Development
 Industry must act responsibly
 Continuously improve safety and
environmental perform...
Summary
 Australia has delivered world class LNG projects
 Australia’s advantage
 Close to LNG customers
 Existing inf...
Follow ConocoPhillips at:
Conventional Gas Resources, Proven Basins & Infrastructure
25
Source: Geoscience Australia, 2014 Australian Energy Resourc...
Analysis suggests that multiple LNG supply sources could be
competitive into Asian markets
“I think two years ago I said...
Upcoming SlideShare
Loading in …5
×

Todd Creeger - ConocoPhillips - Leveraging Australia’s LNG advantage in a competitive global marketplace

1,648 views

Published on

Todd Creeger delivered the presentation at the 2014 South East Asia Australia Offshore and Onshore Conference (SEAAOC).

SEAAOC is Northern Australia's largest and longest established petroleum conference and brings together major players involved within Australasia's oil, gas and petroleum industries. The event is run as a partnership between Informa Australia and the Department of the Chief Minister - Northern Territory Government of Australia.

For more information about the event, please visit: http://bit.ly/SEAAOC2014

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,648
On SlideShare
0
From Embeds
0
Number of Embeds
190
Actions
Shares
0
Downloads
85
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Todd Creeger - ConocoPhillips - Leveraging Australia’s LNG advantage in a competitive global marketplace

  1. 1. Todd Creeger President Australia-West SEAAOC, 20 August 2014 Leveraging our LNG advantage in a global market
  2. 2. Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results or the industries or markets in which we operate or participate in general. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict such as oil and gas prices; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations or from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips’ business and other economic, business, competitive and/or regulatory factors affecting ConocoPhillips’ business generally as set forth in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC). We caution you not to place undue reliance on our forward-looking statements, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information. Use of non-GAAP financial information – This presentation may include non- GAAP financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any non- GAAP measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure in an appendix. Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term "resource" in this presentation that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.
  3. 3. Project Overview 3
  4. 4. ConocoPhillips Australia & Timor-Leste Portfolio 4
  5. 5. Australia Pacific LNG  CSG to LNG project in Queensland  Constructing 2 x 4.5 MTPA trains, first LNG mid-2015  ConocoPhillips operator of downstream LNG facility on Curtis Island 5
  6. 6. Bayu-Undan & Darwin LNG Operated by ConocoPhillips 6
  7. 7. ConocoPhillips Exploration & Appraisal Programs  Understanding reservoir & assessing commerciality  Greater Poseidon fields  Exploration, Browse Basin  Ten wells since 2001  Caldita-Barossa fields  Appraisal, Bonaparte Basin  Three wells 2014/15 7
  8. 8. Potential Development Options  Offshore processing facilities and back-fill Darwin LNG  Floating LNG  Offshore processing facilities and expansion Darwin LNG  JV partners appraising/exploring across northern Australia 8
  9. 9. Setting the Scene 9
  10. 10. Australian LNG Projects  Existing projects: 24.3 MTPA  North West Shelf (WA), 1989, 16.3 MTPA  Darwin LNG (NT), 2006, 3.7 MTPA  Pluto (WA), 2012, 4.3 MTPA  Under construction: 61.8 MTPA  > $200 billion  Seven large LNG projects by 2020  Gorgon (WA), 15.6 MTPA  Prelude (WA, FLNG), 3.6 MTPA  Wheatstone (WA), 8.9 MTPA  Ichthys (NT), 8.4 MTPA  Queensland Curtis LNG (QLD), 8.5 MTPA  Gladstone LNG (QLD), 7.8 MTPA  Australia Pacific LNG (QLD), 9 MTPA  Next wave in doubt 10 Source: APPEA
  11. 11. Australia’s LNG Advantage 11
  12. 12. Potential in Northern Australia  Significant discovery volumes, with further appraisal/exploration 12 Source: Wood Mackenzie data Acreage
  13. 13. Source: WA Department of Mines & Petroleum and EnergyQuest (July 2013) *Source: EIA World Shale Gas and Oil Resource Assessment 2013 Australia’s Advantage  Stable fiscal and regulatory regime  Close to LNG customers  Skilled and experienced workforce  Existing infrastructure  Abundant discovered and proved resources 13
  14. 14. Liquefaction Capacity v LNG Demand (Source: Wood Mackenzie 2014) 14 If probable, possible and speculative capacity is built, we may see potential LNG oversupply (affecting Australia)
  15. 15. Diverging Trends: Evolution Capacity Costs Global LNG Projects 15 “I think two years ago I said there wouldn’t be another greenfields (project) in Australia for LNG; I’m starting to wonder if there’ll be a brownfield in the next decade.” Federal Industry Minister Ian Macfarlane, APPEA Conference, April 2014 2/3rd Australian projects US projects
  16. 16. Leveraging our Advantage 16
  17. 17. Brownfield Development  Use existing infrastructure to reduce capital costs  Leverage operations best practice e.g. experienced operator, skilled workforce, existing construction and operator relationships 17
  18. 18. ConocoPhillips Example of Brownfields Advantage  Darwin LNG  Cost advantage of tying into existing infrastructure  Permitted for 10 MTPA  Expansion land available  Australia Pacific LNG  Cost advantage of tying into existing infrastructure  Permitted for 18 MTPA  Land available for 2 additional trains  Leverage Operations Best Practice  Strong relationships with train construction companies  Experienced operator ConocoPhillips Optimized Cascade© Process  Regional Infrastructure 18
  19. 19. Technological Innovation  Complement not replace existing options  One Australian project committed: Shell Prelude Project  Preferred development option: Woodside Browse & Sunrise Projects  Opportunity to position Australia as a global FLNG hub  Centre of excellence: operations, maintenance, supply chain and support 19
  20. 20. Potential Business Risk: External Influencers  Environmental groups/NGOs  Ideologically oppose non-renewable energy sources  Influence policy setting by public opinion: NSW and VIC moratoriums  Case Study: Queensland  Genuine community engagement  4,000+ signed access agreements  Peak petroleum industry body estimates economic benefits  30,000+ new jobs  Private sector investment $60b+ 20 Source: Ruth Alice White, via ClimateHoward
  21. 21. Resources Do Not Equal Development  Policy makers must think big  Stable fiscal regimes attract global investment  Cutting approval timelines  Sound regulation based on prudent scientific fact is vital  Remain open to innovative technology such as FLNG  Laws should promote investment  Domestic gas reservation policies deter investment  Support industry investment in training 21
  22. 22. Resources Do Not Equal Development  Industry must act responsibly  Continuously improve safety and environmental performance  Continuously improve technologies, processes and safeguards  Better inform & engage stakeholders  Commit to local content that builds capacity & economic participation  Collaborative training approach  Commitment to an industry-wide skills training and development  Work together to increase skill pool including diversity 22
  23. 23. Summary  Australia has delivered world class LNG projects  Australia’s advantage  Close to LNG customers  Existing infrastructure  Highly experienced workforce  Abundant resources  Challenged to remain cost competitive in a global marketplace  Addressing challenges  Brownfield developments  Innovative technology – FLNG  Investment decisions need certainty  Stable fiscal settings  Sound regulatory policy  Industry must remain committed to transparency and sustainability 23
  24. 24. Follow ConocoPhillips at:
  25. 25. Conventional Gas Resources, Proven Basins & Infrastructure 25 Source: Geoscience Australia, 2014 Australian Energy Resource Assessment (Second Edition)
  26. 26. Analysis suggests that multiple LNG supply sources could be competitive into Asian markets “I think two years ago I said there wouldn’t be another greenfields (project) in Australia for LNG; I’m starting to wonder if there’ll be a brownfield in the next decade.” Federal Industry Minister Ian Macfarlane, APPEA Conference, April 2014. Delivered Cost of LNG to Japan 26 Source: Wood Mackenzie, LNG Tool H1 ’14

×