Origin Energy Limited · ASX:ORG
Origin Energy — Investor Presentation (July 2012)
26 slides from Origin Energy's investor presentation, Jul 4, 2012
Slide 1: Australia Pacific LNG – FID2: Final Investment Decision on Train 2
Australia Pacific LNG – FID2 Final Investment Decision on Train 2 Grant King, Managing Director 4 July 2012
Slide 2: Important Notice
Important Notice This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose of any securities in Origin, in any jurisdiction (including the USA). This presentation is for information purposes only, is in a summary form, and does not purport to b
Slide 3: Important Notice (continued)
Important Notice (continued) All comparative data is in relation to either the year ended 30 June 2011 or the 6 months ended 31 December 2010 as indicated, unless otherwise stated. Certain comparative amounts may have been reclassified to conform with the current year’s presentation. Reserves The st
Slide 4: Australia Pacific LNG has approved a Final Investment Decision on the second train
Australia Pacific LNG has approved a Final Investment Decision on the second train of its CSG to LNG project … • FID taken on the second train of the Australia Pacific LNG project (FID2) • Marketing complete for two-train project • Shareholdings following completion of Sinopec’s additional equity su
Slide 5: APLNG's value to Origin is demonstrated by a breakeven oil price of US$35/bbl
APLNG’s value to Origin is demonstrated by a breakeven oil price of US$35/bbl to cover project costs and project finance debt service obligations … OVERVIEW Project • CSG-to-LNG export project - two LNG trains approved, each with a 4.5 mtpa description: nameplate capacity Shareholdings(1): • Origin
Slide 6: Australia Pacific LNG has made significant progress over the last four years
Australia Pacific LNG has made significant progress over the last four years … Milestones Timing (CY) Origin and ConocoPhillips form APLNG incorporated JV Q4 2008 Initial Advice Statement submitted Q1 2009 Curtis Island site selected Q3 2009 Commenced FEED work Q4 2009 Environmental approv
Slide 7: Australia Pacific LNG is a strong and aligned incorporated joint venture
Australia Pacific LNG is a strong and aligned incorporated joint venture, combining Origin’s Australian CSG experience with ConocoPhillips’ extensive LNG and CSG capabilities … • Australia’s largest integrated • Integrated energy company with • Integrated energy and chemical company energy company g
Slide 8: FID2 is the final condition precedent for Sinopec's equity subscription
FID2 is the final condition precedent for Sinopec’s equity subscription in Australia Pacific LNG to increase to 25 per cent • With the taking of FID2, Sinopec’s agreement to increase its shareholding in APLNG from 15% to 25% is now unconditional with completion due to occur shortly • Origin and Cono
Slide 9: Australia Pacific LNG marketing is complete with contracts in place for 8.6 mtpa of LNG
Australia Pacific LNG marketing is complete with contracts in place for 8.6 mpta of LNG Sinopec Kansai • 7.6 mpta LNG supply for 20 • 1.0 mtpa LNG supply for 20 years years • Largest LNG supply agreement • Commencing 2016 in Australian history by annual volume • Commencing 2015 for 4.3 mtpa and 2016
Slide 10: The project is underpinned by a large, high quality reserves base
The project is underpinned by a large, high quality reserves base with strong, experienced operators in CSG and LNG developments Australia’s largest 2P reserves base Quality of the CSG resource • APLNG holds prime acreage in both of the • Large CSG reserves position Queensland’s CSG “sweet spots” –
Slide 11: Australia Pacific LNG has world leading operators
Australia Pacific LNG has world leading operators UPSTREAM DOWNSTREAM • Operated by Origin • Operated by ConocoPhillips • Over 15 years’ CSG production experience in • Over 40 years’ LNG production experience Australia • Using ConocoPhillips’ Optimised Cascade® technology • Complemented by ConocoPhi
Slide 12: Upstream is on budget and schedule for Train 1 start-up in mid-2015
Upstream is on budget and schedule for Train 1 start-up in mid-2015 Milestones Date (CY) EPC pipeline contract awarded to MCJV July 2011 First Savanna hybrid coil drill rig operational July 2011 Pipeline manufacture 2011 and 2012 Second Savanna hybrid coil drill rig operational early 2012
Slide 13: The drilling rate will increase as 3rd and 4th rigs are mobilised
The drilling rate will increase as 3rd and 4th rigs are mobilised over the coming months • Around 1,100 operated wells to be drilled by APLNG to support ramp requirements for two trains (Phase 1) • The key areas for drilling these Phase 1 operated wells are Talinga, Spring Gully, Condabri and Combab
Slide 14: The gathering construction camp at Condabri is now occupied by contractors
The gathering construction camp at Condabri is now occupied by contractors Gathering • Leighton Contractors and East Coast Pipelines contracted to deliver gathering system • Gathering construction camp is now occupied by contractors, as scheduled Condabri Gathering Camp Gazebo at Condabri Gathering
Slide 15: APLNG's gas and water facilities are simple and repeatable
APLNG’s gas and water facilities are simple and repeatable Gas processing facilities Water treatment plants • 7 new gas processing facilities required for project • 2 new water treatment facilities required • Modularisation and improved design has significantly for project reduced footprint • Leight
Slide 16: Pipeline welding is due to commence in the September 2012 quarter
Pipeline welding is due to commence in the September 2012 quarter … Pipelines Electrification • EPC pipeline contract awarded to McConnell • Train 1 electrification contracts awarded to Dowell, Consolidated Contracting Co. joint Powerlink and on schedule venture (MCJV) in July 2011 • Powerlink to de
Slide 17: Downstream is on budget and schedule for Train 1 start-up in mid-2015
Downstream is on budget and schedule for Train 1 start-up in mid-2015 Milestones Date (CY) Commenced Curtis Island works mid-2011 Awarded EPC contract to Bechtel mid-2011 1st concrete LNG Tanks April 2012 1st concrete Train 1 compression June 2012 Roll-on roll-off facility fully operationa
Slide 18: Downstream operations on the mainland and Curtis Island are progressing as planned
Downstream operations on the mainland and Curtis Island are progressing as planned Mainland – temporary materials offloading Mainland – aggregate loading onto barge facility April 2012 Curtis Island Camp LNG tank foundations Curtis Island – Material Offloading Facility Curtis Island – cement batch p
Slide 19: Bechtel is responsible for all activity on Curtis Island under a fixed price contract
Bechtel is responsible for all activity on Curtis Island (engineering, procurement, construction) under a fixed price contract … Engineering and Procurement Construction • Engineering and procurement remain on • Pouring of the Train 1 foundations commenced in schedule June 2012 • The module yard is
Slide 20: Australia Pacific LNG is making a significant economic contribution to Queensland
Australia Pacific LNG is making a significant economic contribution to Queensland and creating thousands of new jobs … • Currently creating employment for around 4,000 Queenslanders and will create 6,000 construction jobs and a further 1,000 jobs for ongoing operations • More than 650 land access ag
Slide 21: Risk mitigation plans and controls are in place
Risk mitigation plans and controls are in place … Risk Response • Project operators are world class operators in their fields • Industry leaders engaged for all key contracts and services of the project Execution risk • Integration and interfacing team established to drive alignment between differen
Slide 22: Project capital costs remain in line with FID1 estimates
Project capital costs remain in line with FID1 estimates … • Estimated capital expenditure (project and non-project costs) from July 2011 until start of up Train 2 in early 2016 includes: - A$23 billion(1) project costs – in line with US dollar estimates at FID1(2) - non-project related costs(3), wh
Slide 23: Australia Pacific LNG has secured US$8.5 billion of project finance
Australia Pacific LNG has secured US$8.5 billion of project finance Project finance • In May 2012, Australia Pacific LNG successfully secured a US$8.5 billion Project Finance Facility for the downstream parts of the project, including the LNG plant on Curtis Island • The Project Finance Facility com
Slide 24: Origin has sufficient liquidity to fund its share of APLNG
Origin has sufficient liquidity to fund its share of APLNG • Origin's remaining funding requirement(1) for its 37.5% share of APLNG for the period from 1 July 2012 to first production of both LNG trains is approximately A$3.6 billion Origin Debt & Bank Guarantee Maturity Profile as at 31 May 2012 •
Slide 25: Australia Pacific LNG is on track to deliver first LNG by 2015
Australia Pacific LNG is on track to deliver first LNG by 2015 … Commercialisation of Australia’s largest 2P CSG reserves at international oil-linked prices Strong and aligned shareholder group each with strong funding capacity ConocoPhillips-Bechtel experience in developing LNG facilities usi
Slide 26: Thank you
Thank you For more information Kylie Springall Group Manager, Investor Relations Email: [email protected] Office: +61 2 8345 5288 Mobile: + 61 400 477 393 www.originenergy.com.au 26 |