Exploration & Production

Transcription

1 Exploration & Production Stefano Cao COO

2 Disclaimer This presentation contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations, estimates, forecasts, and projections about the industries in which Eni operates and the beliefs and assumptions of the management of Eni. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management and competition are forward-looking in nature. Words such as expects, anticipates, targets, goals, projects, intends, plans, believes, seeks, estimates, variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Eni s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which Eni operates, regulatory developments in Italy and internationally and changes in oil prices and in the margins for Eni products. Any forward-looking statements made by or on behalf of Eni speak only as of the date they are made. Eni does not undertake to update forward-looking statements to reflect any changes in Eni s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures Eni may make in documents it files with the US Securities and Exchange Commission. 2

3 2005 Highlights Production Trend Reserves Capex Exploration and Development 3

4 Production Growth kboe/d +7.5% +8.9% ,704 1, ,624 1, Stronger growth in higher price scenario Brent $/bl +6.0% +7.0% 4Q 04 4Q Reported PSA effect 1$/bl: ~ 2 kboe/d Excluding Psa effect 4

5 2005 Production Contribution kboe/d Gross Operated 2,466 1, , PSA Hurricane GoM 2004 Depletion Growth Start-ups

6 Main Start-ups and Exploration Discoveries Exploration discoveries ALGERIA ROM 6 (100% Op.) AUSTRALIA Vesta 1 (40% Op.) BRAZIL Belmonte 1 (100% Op.) CHINA HZ (100% Op.) HZ (33% Op.) EGYPT Belaym L SW 1 (100% Op.) Port Fouad MD 1 (100% Op.) INDONESIA Aster 2&3 (62% Op.) LIBYA T1-NC 41 (100% Op.) NIGERIA Abo 8 (50% Op.) Bolia 3X (12.5%) Bonga N2 (12.5%) NORWAY Goliat/Barents Sea (65% Op.) PAKISTAN Dujan 1 (32%) TUNISIA Nour 1 (50%) USA Allegheny South (100% Op.) Total exploration reserves 730 Mboe 2006 production contribution 220 kboe/d Start ups ALGERIA Rod 403 D (1Q05 - Op.) ANGOLA Bomboco/Sanha Cond. (2Q05) Kizomba B (3Q05) Belize Benguela (1Q06) AUSTRALIA LNG Bayu Undan (1Q06) CHINA HZ 19-2 (1Q05) CROAZIA Ika/Ida (1Q06 - Op.) EGYPT Barboni (2Q05 - Op.) LIBYA Bahr Essalam (3Q05 - Op.) NIGERIA Bonga (4Q05) 4&5 Train LNG (4Q05) NORWAY Kristin (4Q05) Svale/Staer (4Q05) PAKISTAN Rehmat (1Q05) USA K-2 (2Q05 - Op). 6

7 Organic Production Growth (kboe/d) 2008 TARGET Plan 2,000 kboe/d at 25 $/bl Plan 2,025 kboe/d proforma at 25 $/bl CAGR ~4% >2,000 ~3% 1,737 >1, Brent: 54.5 $/bl 2006, 45 $/bl 2007, 34 $/bl 2008, 32 $/bl 2009, $/bl r.t. 7

8 Production Renewal (kboe/d) >2,000 1,737 New production 19% Main fields Bahr-Essalam Bonga Elephant Kizomba B Kristin South Pars 4&5 Temsah Main fields BBLT Blacktip Block 208 Corocoro Kashagan Mondo Nikaitchuq & Oooguruk North Bardawil Saxi-Batuque 2005 Depletion Growth New 2009 Production 8

9 Proved Reserves Year-end Brent ($/bl) at 40 $/bl 40 Reserves replacement (%) Proved reserves (Billion boe) SEC rules Reported 2003 Reported 2004 Proforma 2005 Proforma 2005 Reported 9

10 Proved Reserves (cont.) 11.5 at 30 $/bl Life index (year) Proved reserves (Billion boe) Gas Liquids SEC rules % 58% 60% 63% RRR Proved dev. 100% at 58 $/bl 160% at 30 $/bl Proved developed as % proved 10

11 Capex (Bln euro) Bln euro Opportunities Gas Projects Integrated LNG Projects Access to large oil reserves Non conventional Yearly Avg $/euro: 1.29 (average ) 11

12 Total Capex 25.3 Bln euro * 25.3 Opportunities 10% Transport System 5% LNG 4% Exploration 12% Capex increase 7.9 Bln euro Activities 5.1 Cost Inflation 2.8 Development 69% Plan Plan Plan Transport LNG Opportunities Expl. Devel Plan (*) Including not consolidated investment of 0.9 Bln euro, mainly LNG 12

13 Exploration Strategy Capex (Million euro) Renewal of Portfolio New acreage in core areas Access to high potential areas 760 M$ M$ 720 Selective exploration More funds avg (02-05) avg (06-09) 13

14 Renewal of Exploration Portfolio New Acreage Core areas ALGERIA 1 block onshore ANGOLA 1 block offshore EGYPT 3 blocks onshore 2 blocks offshore IRELAND 4 blocks offshore LIBYA 4 blocks onshore NIGERIA 2 blocks offshore PAKISTAN 4 blocks onshore 2 blocks offshore USA 30 blocks deepwater New areas ALASKA 77 blocks onshore 27 blocks offshore BRAZIL 1 block offshore INDIA 1 block onshore 1 block deepwater SAUDI ARABIA 1 block onshore 2005 net new acreage ~ 44,000 kmq 93% operated 45% of total acreage renewed in the last three years 14

15 New Projects BBLT Bl. 14 LNG - Bayu Undan Oooguruk Angola Australia Alaska Eni 20% Eni 12% Eni 30% Start-up Jan 2006 Jan

16 AFP TAF 2 TC FP TAT TAP TA F1 LAF 1 LAF 2 PPN1 PPN2 EMVF MAHIA EMVU PPC New Projects (cont.) Mondo Bl. 15 Awa-Paloukou Bonny LNG 6 th train Angola Congo Nigeria DJENO TERMINAL Kitina DJENO o N Kossa TERMINAL Blend? PUNTA NERA DJENO EMERAUDE K OUALA AWAWA A & PALOUKOU Eni 20% Eni 100% Op. Eni 10.4% Start-up

17 New Projects (cont.) Block 208 North Bardawil Kashagan Algeria Egypt Kazakhstan Riser Island Algeria West Barrier HBN/HBNS B404-B403a Condensate export to Gassi Touill B405a EKT EMN B208 D Island MLSE EMK EME B212 EOR IAN South Barrier Eni 12.3% Eni 60% Op. Eni 18.5% Op. Start-up

18 New Projects (cont.) Landana Tombua Bl. 14 Blacktip Goliath Angola Australia Norway - Barents Sea Existing PWC Plant in Darwin Existing gas line from Amadeus Basin SnØhvit Albatross Askeladden Goliat Goliat Central/Main New PWC onshore gas 340 line km BLACKTIP Platform WADAYE Gas Treatment Plant HAMMERFEST 16 x 108 km offshore line 6916 Goliat South Eni 20% Eni 100% Op. Eni 65% Op. Start-up New Production >350 kboe/d 18

19 North Caspian Sea PSA Russia Kazakhstan KALAMKAS KASHAGAN SW Caspian Sea KASHAGAN KAIRAN AKTOTE Kashagan Experimental Program 40% of development completed Costs review in progress Weakening of US dollar Increased costs for material and services Lack of benchmark for offshore Reconfiguration of wells and offshore facilities Production start up: late 2008 D Island Appraisal campaign Kashagan: one well in East area, 4 wells in Neck and West area in Kalamkas: 2 wells in Kairan: 1 well in 2006 Aktote: studies to appraise discovery 19

20 Transportation System Existing In progress Planned alternatives Future alternatives New terminal/infrastructures Russia Samara Kazakhstan To China Shuttle vessels To Baltic Sea Atyrau Moldavia Ukraine CPC (Eni 2%) Bolashak Novorossiysk KASHAGAN Georgia Makhachkala Caspian Sea Aktau Kuryk Uzbekistan Samsun Tbilisi Azerbaijan Turkey BTC (Eni 5%) Baku Ceyhan Iraq 1.1 Bln euro capex in

21 LNG Expansion for Long Term Growth (bcm) Equity Gas Supply >12 Liquefaction Capacity > CAMEROON REGANOSA SINES SAGUNTO PANIGAGLIA DAMIETTA E Regassification Capacity T&T BRASS BONNY OMAN BONTANG E LNG Sales 11.5 ~15 DARWIN > Liquefaction Regassification ~13 In association Direct E Equity production Main LNG routes E 21

22 Appendix

23 PSA - Price Effect Brent price 30 $/bl 58 $/bl (kboe/d) PRODUCTION Revenues Bln $ 250 Payout time: 3.9 years IRR +5% Payout time: 1.9 years Reserves (Bln boe) Payout time -2 years Referred to Proved Reserves of key projects in three core areas; 5 bln $ of capex to be recovered 23

24 Performance Index Reserves Replac. (organic) (%) Discovery Cost ($/bl) F&D Cost ($/bl) Reported Proforma Brent 30 $/bl Discovery and F&D costs net of Lasmo and Fortum acquisitions; F&D costs net of Buy Back (Iran) 24

25 Focus on Unit Costs Eni Benchmark Group Lifting Costs ($/boe) Cash Flow ($/boe) Opex '01-03 '02-04 '03-05 Cash Flow = Net Income + Exploration expenses + DD&A Benchmark Group includes BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Shell, Total '01-03 '02-04 '

26 HR - Technology - HSE Human Resources Technoloy HSE Talent Management Knowledge and Professional skill International approach Organization flexibility Depth Drilling time Target depth Access to possible deeper targets Reduced time, costs and wastes Lean Profile CRS Stack Safety Environment Health CONVENTIONAL WELL TESTING UNCONVENTIONAL WELL TESTING To sustain growth EMISSIONS (HC-GAS GAS-CO 2 - H 2S) Risk of Environmental impact ZERO EMISSIONS No Risk of Environmental impact Zero Emission Well Testing ENI s Technology In compliance with most advanced International Standards 26