Future growth
June 2016
LR5 Drilling Rig in Khazzan, Oman
1
Future Growth
Andy Hopwood, EVP, Chief Operating Officer Strategy and Regions
Hesham Mekawi, Regional President North Africa
Howard Leach, Head of Exploration
Agenda
•
Strong incumbent positions growing value
•
Examples of real growth today – Oman & Egypt
•
Focused exploration – extending positions and creating new profit centres
2
Growing value with today’s resources
…underpins production growth
800-1000mboed
of new projects
Resource Depth and Quality…
New opportunities
Prospect Inventory
15-20 bnboe
800mboed from
2020 projects
45 bnboe of discovered resources (2)
Non-Proved Resource
34.8 bn boe
Infill, extensions, imp.
recoveries 25 bn boe
Major Projects 9
bn boe
Proved Undeveloped
4.6 bn boe
2020
Producing Assets
5.8 bn boe
2025
2030
2020 Base business inc future drilling wedge activity
Post 2020 Major Project Start-ups
Progression of E&A and new opportunities
3
New Opportunities, returns focused
Strong Incumbent positions to fuel growth
Future Major Project Value accretion
Material Growth options
•
•
Drill-out of major hubs
Lower 48 growth
•
•
Existing post-FID major projects
2016 - 2020, Pre-FID major
projects
Post 2020 Major Project Start-ups
•
Mad Dog Phase2
•
ACG PSA Extension
•
West Nile Delta Phase 2
•
India Gas Projects
•
Atoll Phase 2
•
Greater Clair
•
•
Trinidad contract extension
GoM Paleogene
-45.0 -40.0 -35.0 -30.0 -25.0 -20.0 -15.0 -10.0 -5.0
60.0
0.0
5.0 10.0 15.0
Current average
unit DD&A
55.0
50.0
45.0
Accretive to Cash Margins
2020 Base business inc future drilling wedge activity
40.0
35.0
30.0
25.0
20.0
15.0
Progression of E&A and new opportunities
•
•
Azerbaijan SWAP, Shafag Asiman
China Shale
•
ILX in North Sea, Trinidad and
NWS
Egypt Exploration
•
•
GoM Miocene
Russia
•
Eastern Canada
•
10.0
5.0
0.0
2015 baseline
-5.0
pre-FID
-10.0
-15.0
Relative size of Major Project Resource
Accretive to Earnings
Average 2016-25 pre-tax Ops cash/boe at equivalent price to 2015 actuals ($52 Oil and $ 2.7HH)
4
Portfolio Balance providing resilience
Cumulative Capital (2016-20)
Gas Value
Chains
Domestic &
European Gas
LNG
Henry Hub
Flexible
(giant resources)
Stable
(non-US
Gas, LNG)
Giant
Fields
Oil
Deepwater
Resource Theme
Price Exposure
High impact
(deepwater /
offshore oil)
Cash Generation Characteristic
5
Oman – unlocking new growth
Vertical Well Performance
Cumulative
well cost $m
400
Sanction Case Average
($20m per 40mmscf/d)
Appraisal Wells
200
Actual Full Field
Development Wells
0
0
Cumulative IP30* mmscf/d
1000
*Initial Production (1st 30 days)
6
Oman – continuous improvement
Cost savings from Phase 1 effectively pays for expansion
Recoverable gas, tcf
10.5
Development capital, $bn
~16
~16
~12
7.0
Phase 1
Phase 1 & 2
Phase 1
Phase 1 Optimized
Phase 1 & 2
Integration of BP technologies illuminated reservoir quality for better well
placement, optimized well design, and ultimately better recovery per well
Well count
300
325
D-cost, $/boe
12
8
200
Phase 1
Phase 1 Optimized
Phase 1 & 2
Phase 1
Phase 1 Optimized
7
Phase 1 & 2
7
Egypt – deep portfolio
Legend
Final_Delta_Leases (Colored-Final)
Others
BPs
BP Operated Block
Existing Base
Contracted + Discovered
Exploration Potential
BP Non-Operated Block
North Leil
North El Max
Karawan
Shorouk
North Tennin
N. Port Fouad
N. El Tabya
WND Project
N. Alex
WMDW “B”
N. Alex “B”
Atoll
Baltim SW-1
EDDM
Atoll Project
N. Damietta
N. El
REB
Burg
Temsah
Baltim El Burg
Offshore
Nidocco N. Ras El Esh
NGL
N.
El Hammad
Burullus
Rosetta East
Rosetta
LNG
Nooros
Burullus
N.
Tineh
N. Thekah
N. El Arish
LNG
SEGAS
W.Harbor
Matariya
UGDC
El Gamil
Abu Madi
Wastani
El
S. Batrah
8
Egypt – unlocking new growth
400
Net production mboed
More than tripling net
production in the next
four years based on
contracted volumes
Atoll
Phase 1
Other discovered
resource
Atoll Phase 2
Exploration
potential
West Nile
Delta Phase 2
West Nile
Delta Phase 1
Existing base and drilling
wedge activity
0
2010
2015
2020 Base business- incl future drilling wedge activity
2020
Post 2020 MPs
2025
2030
Progression of E&A and new opportunities
9
Focused exploration and access
Newfoundland
/Nova Scotia
Russia
North Sea
Azerbaijan
Egypt
China
Gulf of Mexico
Mexico
Middle East
Trinidad
Indonesia
Angola
Current exploration regions
Potential new profit centre
Brazil
Australia
Argentina
1
Trinidad – extending incumbency
Seismic acquisition and imaging technology renewing drilling options in a mature play
Near Field Prospects
Location Map
Coconut Deep
2018
Ginger
2020
Jasmin
2019
Savannah
2016
Macademia
2017
3D Streamer Data
3D Ocean Bottom Cable
11
Azerbaijan – new growth opportunities – Shafag Asiman
Shafag Asiman - giant gas/condensate prospect
Shah Deniz
Shafag Asiman
12
Azerbaijan – new growth opportunities - SWAP
SWAP PSC – near shore oil potential
SWAP PSC
13
Summary
• Growing the business with the resources we have today
• New opportunities, returns focused – Oman and Egypt
• Portfolio balance providing resilience
• We are focusing our exploration activity
14