Future Development Opportunities for the Offshore Industry. Richard Lunam, VP, North American Exploration

Transcription

1 Future Development Opportunities for the Offshore Industry Richard Lunam, VP, North American Exploration

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. 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 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). 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. 2

3 Overview Introduction Offshore Discoveries 2013 Key Offshore Wildcat Wells Exploration drivers ConocoPhillips Offshore Exploration Summary Q&A 3

4 Introduction Global exploration o success dominated by offshore o discoveries es and deepwater in particular a Offshore volumes of ~150 billion barrels of oil equivalent (BOE)* discovered >80 billion BOE* (>50%) in deepwater plays around the world Large oil volumes discovered in Brazil & sub-saharan Africa (South Atlantic basins) Major dry gas discoveries in East African deepwater basins Continued global exploration success in 2012, with over 25 billion BOE* discovered Aggressive offshore exploration drilling programs permitted around the globe for 2013 *Source: Wood Mackenzie 4

5 Location of Notable Recent Offshore Discoveries Norway Barents Sea US GOM Paleogene Miocene Jurassic Mexico Perdido Foldbelt French Guiana DW Brazil Ultradeep Basins North Sea Johan Sverdrup Tano Basin Tanzanian Coastal Malaysia Oil Gas Campos & Santos Basins Malvinas Basin Kwanza Basin Pre-Salt Rovuma Basin Carnarvon Basin Sources: Various 5

6 Discovered DW and Ultra DW Volumes Source: IHS 6

7 Location of Planned Offshore Wildcat Wells Faroe Is./ West Shetlands Barents Sea Flemish Pass DW Ireland Libya DW US GOM NW Africa Levant Basin S.China Sea Mexico Perdido S.America Equatorial Margin Kwanza Basin W.Africa Equatorial Margin Gabon DW India DW DW East Africa Vietnam Malaysia Namibe Basin South Africa Browse & Carnarvon Basins Indicates a well, or wells anticipated to spud in 2013/14 Sources: Various 7

8 Gulf of Mexico Growth Paleogene Play March wells drilling and 7 Exploration Plans (EP) in place Paleogene Well TD d Paleogene Active/Drilling Wells Drilling Exploration Plan/Location Nansen Deep Coral Cobra Tobago Great White Gila Ardennes North Platte Dawn Marie Shenandoah Coronado Aegean Yucatan North Kaskida Stones Leon Moccasin Bioko Buckskin Phobos Key Largo Logan Jack St Malo S Sources: BOEM, COP Scout, Internal 8

9 Gulf of Mexico Growth Mid & Lower Miocene Play March wells drilling and 2 Exploration Plans in place Miocene Well TD d Miocene Active/Drilling Wells Drilling Exploration Plan/Location Niedermeyer Dalmatian South Blackbeard West Appaloosa Boreas West SOBII Malachite Marmalard Santiago Big Bend Angel Fire Candy Bars Oasis Gunflint Innsbruck Kilchurn Kakuna Ness Deep Ligurian 2 Parmer Sources: BOEM, COP Scout, Internal 9

10 Offshore Exploration Drivers Creative geo-science and risk tolerance Consistent access to new acreage ~2.9MM sq. km* leased globally since 2009, much of it in deepwater ~0.1MM 01MMsq km* *leased din USOCS(GOM) Terms and tenure that promote effective exploration & appraisal Availability of state of the art 3D seismic data Resolving deeper and more complex targets Complex subsalt geology & subtle stratigraphic traps Rapidly evolving deepwater rig fleet Capacity to drill in ultra deep water (>10,000 ) Significant depths below sea-level (>35,000 ) Leading role by North American & European IOC s in testing plays Technical risk Surface/new country risk *Wood Mackenzie: New blocks and new rigs explorers crank up deepwater spend, March

11 ConocoPhillips Conventional Exploration Portfolio Chukchi Sea West Greenland Barents Sea & North Sea Gulf of Mexico Azerbaijan Bangladesh Indonesia Malaysia Angola Browse & Bonaparte Offshore Onshore 11

12 ConocoPhillips Deepwater Gulf of Mexico Growth on deepwater Focus on emerging Paleogene and Lower Miocene plays Position building primarily via lease sale Miles Legend COP Leases HBP / HBU Primary Term Lease Gas Pipeline Oil Pipeline Other Pipeline U Mioc, Plio, Pleist Discovery M. Miocene Discovery L. Miocene Discovery Paleogene Fields and Discoveries Paleogene L/M. Miocene Effective March

13 ConocoPhillips 2013 Gulf of Mexico Activity 2013 Drilling Plan Louisiana 5 wells planned; up to 3 additional wells possible Tiber WI: 18% Target: Paleocene/Eocene Non Operated Ardennes WI: 30% Target: Paleocene/Eocene Non Operated Exploration Appraisal Shenandoah WI: 30% Target: Paleocene/Eocene Non Operated COP Leasehold Coronado WI: 35% Target: Paleocene/Eocene Non Operated Thorn WI: 65% Target: Pliocene/Miocene Operated 13

14 ConocoPhillips Deepwater Angola Atlantic Ocean COP Leasehold Cameia Azul ANGOLA Luanda Play identified as a probable analog to Brazil pre-salt play Recent discoveries de-risk play concept in Kwanza Basin ConocoPhillips-operated 2.5 MM acre position : 3-D seismic acquisition confirms presence of multiple l promising i prospects 2014: 4+ well drilling program begins Km 0 Brazil West Marlim/ Blocks 36 & 37 Jubarte Cameia Angola East Mid Atlantic Ridge 6 Oceanic Crust 12 Campos Fault Outer Ramp Outer Ramp Atlantic Hinge 14

15 Summary Significant ifi exploration discoveries i in recent years will fuel significant new offshore developments around the world Areas to watch for new developments East Africa Mozambique, Tanzania Sub-Saharan West Africa Angola, Gabon Gulf of Mexico Paleogene, Miocene and Jurassic plays Global offshore exploration activity fueled by Geoscience creativity & risk tolerance, access to leasehold, 3D seismic data, evolving DW rig fleet and aggressive IOC s prepared to take technical/country risk ConocoPhillips has a growing global l exploration portfolio with a major focus on deepwater Gulf of Mexico and Angola 15

16 Questions 16