Oil & Gas Development Co. Ltd. · PSX:OGDC
Oil & Gas Development — Investor Presentation (September 2013)
24 slides from Oil & Gas Development's investor presentation, Sep 12, 2013
Slide 1: OGDCL – An Overview
OGDCL – An Overview PRESENTATION TO LAHORE STOCK EXCHANGE September 12, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements During the course of this presentation we may make forward-looking statements regarding future events or the future performance of the Company. Company By their very nature, nature forward looking statements involve inherent risks and uncertainties, both general and specif
Slide 3: Contents
Contents Country Overview Investment Case Pakistan Energy Dynamics o Energy Supply Mix o Oil & Gas Demand/Supply Gap Pakistan Oil & Gas sector OGDCL Profile o Historical Milestones o C Current S Standing o Reserve Replacement Ratio o Exploration Licences OGDCL’s Market Leadership p ((Oil & Gas
Slide 4: Country Overview
Country Overview – As of June 30- 30-2013 (or as indicated below) Location South Asia Total Area of Pakistan 796,095 Sq. kms Population 184.35 million India (East), (East) Afghanistan (West), (West) China (North) (North), Neighboring Countries Iran (Southwest), Arabian Sea (South) Sea Ports (Interna
Slide 5: Investment Case
Investment Case Largest g upstream player in Pakistan Strong Excellent production and financial exploration position Favourable prospects O Operating ti Environment Proven Attractive costs exploration and returns track record 5
Slide 6: Pakistan Energy Dynamics - Energy Supply Mix
Pakistan Energy Dynamics - Energy Supply Mix Primary Energy Supplies as of 2011-12 = 64.7 *MTOE Oil LPG Gas Coal Electricity 12.6% 30.8% 6 6% 6.6% 0 5% 0.5% 49.5% * MTOE = Metric Tonne Oil Equivalent Source: Pakistan Energy Year Book 2012 6
Slide 7: Pakistan Energy Dynamics - Oil & Gas Demand/Supply Gap
Pakistan Energy Dynamics - Oil & Gas Demand/Supply Gap 120 Local Supply Oil & Gas Demand 100 80 60 OEs Million TO 40 20 0 012-13 013-14 014-15 015-16 016-17 017-18 018-19 019-20 020-21 021-22 022-23 023-24 024-25 025-26 20 20 20 20 20 20 20 20 20 20 20 20 20 20 1 TOE (Tonne of Oil Equivalent ) = 7.4
Slide 8: Pakistan Oil & Gas Sector
Pakistan Oil & Gas Sector Upstream Midstream Downstream Oil Refineries Exploration & Marketing & and Gas Production Distribution Transportation C Companies C Companies Companies Exploration & Production Oil Refineries & Gas Marketing & Distribution Companies Transportation Companies Companies OGDCL,
Slide 9: OGDCL Profile – Historical Milestones
OGDCL Profile P fil – Historical Milestones… 20 September 1961 July 1989 Established as a Statutory Made Self-Financing No longer funded Milestones s Corporation (loan of 27Million Roubles Corporate from USSR equivalent to Rs 143 Million) from Federal Budget To undertake exploratory program and
Slide 10: OGDCL Profile – Historical Milestones
OGDCL Profile P fil – Historical Milestones… October 1997 November 2003 December 2006 August 2009 September 2011 Converted to Initial Public Offering Company listed GoP transfers around OGDCL Celebrated its Public GoP divested 5% on London Stock 10% of its holding to Golden Jubilee on Milestones
Slide 11: OGDCL Profile – Current Standing
OGDCL Profile – Current Standing… Incorporated as a Corporation in August 1961 and converted into public limited Company in October 1997 Largest E&P Company with presence in all the four provinces of Pakistan; Government of Pakistan holds 74.97% interest 667 wells drilled since inception & 97
Slide 12: OGDCL Profile – Current Standing
OGDCL Profile – Current Standing… As of June 30, 2013 (or as indicated below) Largest exploration and production company in Pakistan’s oil and gas sector. Presence in and knowledge of all the 4 provinces Largest exploration acreage in Pakistan, covering 21% of the total acreage awarded Largest
Slide 13: Significant Reserves Position
OGDCL Profile – Current Standing Significant Reserves Position OGDCL (1P & 2P) reserves as at June 30, 2013 Reserve Life 1,200 (* RP R Ratio) ti ) 1,017 1,000 398 455 800 455 mmboe 600 510 562 57 m 15 yrs 400 562 8 200 yrs y 52 - Proved Oil Reserves Proved Gas Reserves Proved Reserves Probable Oil R
Slide 14: Reserves Replacement Ratio
OGDCL Profile – Current Standing Reserves Replacement Ratio Reserves Replacement Ratio 140% 124% 120% 99% 100% 80% 65% 67% 60% 40% 34% 20% 13% 0% 2008‐09 2008 09 2009‐10 2009 10 2010‐11 2010 11 2011‐12 2011 12 2012‐13 2012 13 5 yrs Average 14
Slide 15: OGDCL Profile – Exploration Licenses
OGDCL Profile – Exploration Licenses Status as on June 30, 2013 LEGEND PROVINCE OGDCL NON OGDCL acquired OPERATED OPERATED twenty nine (29) new exploration p blocks Punjab 07 - by participating in Sindh 09 - the competitive Balochistan 10 01 bidding of Petroleum KPK 05 02 Exploration Rights on March
Slide 16: OGDCL’s Market Leadership – Acreage
OGDCL’s OGDCL s Market Leadership – Acreage Acreage* Total Area of Pakistan - 796,095 Sq. kms Area under Exploration – 247,246 Sq. kms (31.1% of Total Area) OGDCL Share - 51,807 Sq. kms OGDCL, 21% Other E&P Co. Share - 195,439 Sq. kms Other E&P Companies, 79% OGDCL Other E&P Companies * As of June 3
Slide 17: OGDCL’s Market Leadership – Production (Oil)
OGDCL’ M OGDCL’s Market k tLLeadership d hi – Production*... OIL Country’s Total 76,277 BPD OGDCL’s Share 54% 41,400 BPD Oth E&P Companies Other C i Share Sh 46% 34 877 BPD 34,877 OGDCL 54% Other E&P Oth Companies 46% * During FY 2012-13 Source: Pakistan Petroleum Information Services (PPIS) 17
Slide 18: OGDCL’s Market Leadership – Production (Gas)
OGDCL’ M OGDCL’s Market k tLLeadership d hi – Production* GAS Country's Total 4,126 MMCFD OGDCL's Share 26% 1,089 MMCFD Other E&P Companies 74% 3 036 MMCFD 3,036 OGDCL 26% Other E&P Companies 74% * During FY 2012-13 Source: Pakistan Petroleum Information Services (PPIS) 18
Slide 19: Total Oil & Gas Production in Equivalent Barrels
Total Oil & Gas Production in Equivalent q Barrels Products Average Daily Production (BOE*) July 2013 to date Crude Oil 41,300 Gas (1,050 MMCFD) 184,211 Total 225,511 * Barrels of Oil Equivalent, 1 barrel of oil = 5.7 Mscf 19
Slide 20: Production Growth – Development Projects
P d ti Growth Production G th – Development Projects Working Interest Expected Projects Location Ownership (%) Production KPD Gas Oil LPG OGDCL - 100% (MMCFD) (BPD) (MTD) KPD-TAY Integrated TAY Hyderabad Sindh Current: 100 1,500 120 Development Project OGDCL - 77.5% 77 5% Incremental: 130 3,600 290
Slide 21: Financial Strength – Net Sales & Profit after Tax
Fi Financial i l Strength St th – Net Sales & Profit after Tax Rs in billion 250 223 200 198 CAGR (11%) 150 156 143 131 126 100 CAGR (10%) 97 91 64 50 56 59 44 - 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Net Sales PAT 21
Slide 22: Financial Strength
Fi Financial i l Strength St th Rs in Million 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Net Sales 125,908 130,830 142,575 155,631 197,839 223,365 O Operating ti profit fit margin i (%) 59 59 60 56 62 58 EBITDA margin (%) 69 70 71 71 74 69 Net profit margin (%) 3 35 42 42 41 49 41 Profit after
Slide 23: Investment Case
Investment Case Largest g upstream player in Pakistan Strong Excellent production and financial exploration position Favourable prospects O Operating ti Environment Proven Attractive costs exploration and returns track record 23
Slide 24: Thank You
THANK YOU
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