November 2010
This presentation is the property of its rightful owner.
Sponsored Links
1 / 22

Finding Petroleum Conference PowerPoint PPT Presentation


  • 67 Views
  • Uploaded on
  • Presentation posted in: General

If you don’t grow you go!. If you don’t have the right people you don’t grow!. November 2010. Finding Petroleum Conference. Agenda. Corporate strategy, goals and exploration strategy The past is the key to the future? Benchmarking If you don’t grow you go!

Download Presentation

Finding Petroleum Conference

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


November 2010

If you don’t grow you go!

If you don’t have the right people you don’t grow!

November 2010

Finding Petroleum Conference


Agenda

Agenda

  • Corporate strategy, goals and exploration strategy

  • The past is the key to the future?

    • Benchmarking

  • If you don’t grow you go!

  • Exploration organisation in a mid cap company

  • Developing oil finders

November 2010 | Page 1


Target and strategy

Target and strategy

Exploration is a fundamental part of Premier’s growth strategy

Target

  • Build three quality businesses which deliver 100 kboepd from 400 mmbbls of reserves

    Strategy

  • Attain 75 kboepd from 2P reserves

  • Commercialise contingent resource base

  • Add 200 mmboe of 2P reserves from exploration

  • Make value-adding acquisitions in three core areas

  • Maintain a conservative financing plan

November 2010 | Page 2


Target strategy and organisation

Target ,strategy and Organisation

Exploration organisation is consistent with the business focus

Corporate (London)

  • Executive, Geoscience Technology and exploration new business

    North Sea

  • Norway based team

  • Near field primarily handled through Development

    Asia

  • NV team in Singapore

  • Exploration asset teams in Vietnam and Indonesia

    MEP

  • London based team with asset support in Pakistan

November 2010 | Page 3


Premier petroleum basin focus

Premier – petroleum basin focus

  • Premier has a competitive advantage in value creating exploration of Rifts and Fold-belts / Forelands

  • Premier will continue to explore the rift basins of SE Asia and the North Sea and will look to exploit its competitive advantages in selected rifts and fold-belt basins of Africa, the Middle East and Central Asia

  • Premier Geoscience resources have expertise in these basin types

November 2010 | Page 4


Exploration strategy

North Sea / West Africa

Asia

Middle East-Pakistan

Rifts

Frontal Fold Belts

Exploration strategy

The goal is to deliver 200 mmboe 2P reserves through the drill bitfocussing on areas where we have demonstrated skills and expertise

Longer-term programme

  • Rift Basins: new acreage in the North Sea, Asia and Middle East

  • Frontal Fold-belt plays: new acreage in the Middle East and Asia

$ spend

Near-term programme

  • Asia: Nam Con Son Basin (Vietnamand Indonesia)

  • North Sea: UK Central North Sea and Norwegian North Sea

Geography

Geology

November 2010 | Page 5


Exploration challenges

Exploration challenges

  • Access to new opportunities in themes of choice

  • Maintaining exploration focus/discipline

  • Managing the natural tension between growth ambitions and the production/development of existing resources

  • Building a geoscience organisation for the future

  • Delivering the 200 mmboe from the existing inventory

November 2010 | Page 6


Finding petroleum conference

Annual discoveries

Cumulative annual discoveries

Historic performance

Recent growth

Future target

Exploration – historic performance and future target

Premier Discoveries 1986-2009 (net mmboe)

1000

  • Premier began exploring in 1986, initially via entry into SE Asia

  • To date Premier has discovered net 800 mmboeat an overall commercial success rate of 22%

  • The commercial discoveries have been made in two basin types:

  • 1) Rifts: Southeast Asia and Norway

  • 2) Frontal Fold-belts: Pakistan

  • The success rate in these basin types is ~40%

  • Since 2000 the exploration success has been dominated by Rift Basin exploration in Asia and latterly in Norway and the UK

  • 200 mmboe net reserves additions are targetedby 2015- we are moving in the right direction

Annual discoveries

Cumulative annual discoveries

Historic performance

900

800

700

600

500

400

300

200

100

0

1985

1990

1995

2000

2005

2010

2015

November 2010 | Page 7


Finding petroleum conference

Annual discoveries

Cumulative annual discoveries

Historic performance

Recent growth

Future target

Exploration Manpower 2004

Total Geoscientists: 15

Exploration Manpower 2010

Total Geoscientists: 55

Exploration Manpower 1999

Total Geoscientists: 40

7 (47%)

8 (20%)

8 (15%)

32 (80%)

8 (53%)

47 (85%)

Consultants

ExplorationGeoscientists (staff)

Exploration – people performance

Premier Discoveries 1986-2009 (net mmboe)

1000

  • Premier in the 90’s

  • In the peak episode of exploration success Premier had 40 geoscientists, in Asia and London

  • A few key consultants were employed

  • Premier in 2003/2004

  • In the period of restructuring and low oil prices this number significantly reduced with reliance on consultants

  • Premier today

  • In 2010 the organisation has now grown (London, Norway and Asia)

  • Long term consultants have largely been replaced by Premier employees - primarily through recruitment from major oil companies with Play and Basin focused experience plus lateral transfers

  • Key “long term" consultants have been retained -specialist knowledge and Premier history

Annual discoveries

Cumulative annual discoveries

Historic performance

900

800

700

600

500

400

300

200

100

0

1985

1990

1995

2000

2005

2010

2015

November 2010 | Page 8


Exploration scenarios for the future portfolio

Exploration scenarios for the future portfolio

  • Scenarios identified has two key drivers and four potential worlds

  • All four worlds have existed over the last 10 years of the industry and volatility will continue

  • The current world is one where only the fittest will survive

    • Companies with a portfolio of low cost “big” assets can afford to cherry pick and survive in a low oil price world

  • Individual companies, dependent on their asset base, capital structure, talent and influence can either ride the wave or deal with choppy waters

x

X 2010 environment

November 2010 | Page 9


Exploration growth strategy key factors ideal exploration company woodmac

Exploration growth strategy:key factors – ideal exploration company (Woodmac)

0

50

100

CORPORATE ALIGNMENT

Organisation aligned behind the role of Exploration but offers enough challenge

CORE COMPETENCIES

Playing to strengths key, but mustn’t stifle innovation

GEOGRAPHICAL FOCUS AND CONSISTENCY

Consistent focus on core geographies, to learn and evolve ideas

FOLLOW ON GROWTH OPPORTUNITIES

Ideally follow on but must be a balanced portfolio of options

ABOVE GROUND RISK

Can be used to create competitive space

Too much high risk can limit value

PARTNERING / RELATIONSHIPS

Leveraging relationships into opportunities can be key

TALENT MANAGEMENT

Skills and knowledge development

SUCCESSFUL TECHNOLOGY APPLICATION

Less key given multiple providers, unless cutting edge

FIRST MOVER / FAST FOLLOWER

Key to establishing value and headroom, but you can’t change the rocks

WILLINGNESS TO EXIT

Must allow time to test the play, but recognise irretrievable value destruction

Source: Woodmac

Ideal explorer

November 2010 | Page 10


Exploration growth strategy key factors minding the gap

Exploration growth strategy:key factors – minding the gap

0

50

100

CORPORATE ALIGNMENT

Exploration Director appointment

Board and Exco alignment

CORE COMPETENCIES

Thematic approach

GEOGRAPHICAL FOCUS AND CONSISTENCY

Core BU’s and thematic approach

FOLLOW ON GROWTH OPPORTUNITIES

Pay based approach

ABOVE GROUND RISK

PARTNERING / RELATIONSHIPS

Partner alignment

Improved regional data

TALENT MANAGEMENT

Recruitmentand career development

Less reliance on consultants

SUCCESSFUL TECHNOLOGY APPLICATION

FIRST MOVER / FAST FOLLOWER

WILLINGNESS TO EXIT

Exit non strategic arease.g. Philippines

Ideal explorer

Premier (EMF assessment 2009)

November 2010 | Page 11


Benchmarking lessons

Benchmarking lessons

  • Material exploration success creates value

  • Stay focussed to areas of expertise (Cairn model) and don’t give up!

    • Premier has successfully explored rifts and frontal fold belts

  • Acquisitions can jump start exploration success, but keep the people not just the assets (Tullow)

    • Consider acquisitions in focus areas, for both subsurface and human resources

    • Oilexco was a success in this respect

  • Taking above ground risk with low geologic risk can create share value (Heritage model)

    • Premier has a proven track record in this type of exploration (Vietnam and historically, Pakistan and Myanmar)

  • Improvement is required in Premiers performance to ensure value creation and investor recognition-People and process

November 2010 | Page 12


Functional charter exploration

Functional charter: exploration

November 2010 | Page 13


Geoscience technology team structure

Geoscience technology team structure

Exploration

Director

ChiefGeoscientist

Group Exploration

Coordinator

Licence

Administrator

ChiefGeophysicist

Chief Development

Geologist

Special Projects

Specialist

OperationsGeophysicist

Direct

Indirect

November 2010 | Page 14


Exploration team structure asia and north sea

Exploration team structure – Asia and North Sea

Exploration

Director

Business Unit

Manager

Exploration

Manager

Licence

Administrator

Business Plan

BD

Support

Exploration New

Venture Leader

Lead Geoscientist

(in either group)

Current Assets

Leader

Operations

Team

Regional Basin Master

Evaluation Team

Evaluation Team

Direct

Indirect

Functional

  • NB. Exploration Manager is primarily focused to license, people and external stake holder management

    • Not internal Coaching / leadership

  • Lead Geoscientist can be NV or existing asset focussed, subject to business plan requirements

    • Coaching and technical leadership role

November 2010 | Page 15


Finding petroleum conference

Percentage man hours spentper key exploration activity

November 2010 | Page 16


Developing the oil finders

Developing the oil finders

  • Nautilus Program

  • Annual field trips- Global involvement

  • Training junior geoscientists

    • Overseas staff- UK MSc’s

    • ExploHub

  • Specialised internal courses ( with external expert support)

    • Play analysis

    • Seismic attributes- Geophysical Forum formed

  • Learning on the job

    • The fundamental way to learn

    • Requires coaches and mentors

November 2010 | Page 17


Finding petroleum conference

ExploHub

Mission statement:

To provide a unique exploration training environment that will prepare exploration geoscientists for the challenge of discovering the Earth’s remaining hydrocarbon resources.

November 2010 | Page 18


To develop oil finders take time

To develop oil finders take time

Andrew Lodge – a career in exploration!

(Cum mmboe)

1600

  • 1978 to 1990

    • Geophysicist in BP

    • Learning to explore

    • Specialising in Sequence Stratigraphy

  • 1990 to 2000

    • Exploration manager in BHP

    • Significant discoveries in Pakistan

  • 2000 to 2009

    • VP Exploration in Hess

    • Discoveries in Europe, North Africa and Australia/Asia

  • 2009 to Present

    • Exploration Director Premier

1400

1200

1000

800

600

400

Premier recuits a samml number graduates

200

0

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Africa

Africa

Africa

Africa

Africa

Africa

Europe

Europe

Europe

Europe

Europe

S. America

1978

1990

2000

2009

November 2010 | Page 19


Premier recruits people with various experience levels

Premier recruits people with various experience levels

  • Graduate recruitment

    • Occasional recruitment, primarily to nationals in existing Business units

    • Primarily external training development

  • Lead Geoscientists

    • 10 to 12 year major company experience

    • People primed to turn learning's to reality

    • Coaches and Leaders of the futures

  • 20 year Plus+ geoscientists

    • Employed in key expert or functional roles- Premier employees and long term consultants- have had success in multiple plays or basins

  • Premier seeks to develop all exploration geoscientists to contribute to organic growth of the company

Andrew Lodge – a career in exploration!

(Cum mmboe)

1600

1400

1200

1000

800

*

600

400

*

200

*

0

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Asia

Africa

Africa

Africa

Africa

Africa

Africa

Europe

Europe

Europe

Europe

Europe

S. America

1978

1990

2000

2009

November 2010 | Page 20


Exploration strategy1

North Sea / West Africa

Asia

Middle East-Pakistan

Rifts

Frontal Fold Belts

Exploration strategy

The goal is to deliver 200 mmboe of reserves through the drill bitfocussing on areas where we have demonstrated skills and expertise

Longer-term programme

  • Rift Basins: new acreage in the North Sea, Asia and Middle East

  • Frontal Fold-belt plays: new acreage in the Middle East and Asia

Near-term programme

  • Asia: Nam Con Son Basin (Vietnamand Indonesia)

  • North Sea: UK Central North Sea and Norwegian North Sea

$ spend

Geography

Geology

Talent management is afundamental to success

  • Premier is focussed to growth of reserves, value AND its people

    ……but it will time and effort to succeed

November 2010 | Page 21


  • Login