imo oil sands presentatio 103100022

7/30/2019 Imo Oil Sands Presentatio 103100022

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Canadas Oil Sands

Eddie Lui

VP, Oil Sands Development & Research

November 27, 2012


2/23

Cautionary Statement

This presentation may contain forward-lookinginformation on future production, project start-ups

and future capital spending. Actual results coulddiffer materially due to changes in project schedules,operating performance, demand for oil and gas,commercial negotiations or other technical andeconomic factors.


3/23

Discussion topics

Alberta Oil Sands

Oil sands Challenges and Solutions

Oil Sands Technologies (Past, Present & Future)

Company Performance

Q&As


4/23

Canada has thirdlargest reserves inthe world

97% associated withoil sands

Vital & secure energy

supply to Canada &the world

Canadas Oil Reserves

Source: U.S. Energy Information Administration


5/23

Key Bitumen Established

Recovery In-Place Reserves

Area API Technology (GB) (GB)

Athabasca 7 - 9 Mining 131 34SAGD 1393

Cold Lake 10 - 11 CSS 183 135

Peace River 8 - 9 CSS 136

1,844 169

Source: ERCB ST98-2012

Calgary

Edmonton

PEACE

RIVER

COLD LAKE

ATHABASCA

100 mile

125 km

SAGD

CSS

Mining

CSS

Alberta Oil Sands


6/23

Simply, sand saturated with oil

Bitumen is thick

Heat and water used to produce it

What are oil sands?


7/23

Depth of resourcedetermines recovery method

Closer to surface:

Mining


8/23

Depth of resourcedetermines recovery method

Deeper below surface: In-situ (in place)


9/23

What it takes to produce bitumen?

Deeper below surface: In-situ (in place)Water& Steam

Heat

Chart 9


10/23

GHG emissions from oil sands: just over 1/1000th of global GHG emissions

6.9% of Canadas GHG emissions

26% reduction in intensity from 1990

Global Emissions Canadas 2%

Chart 10

Sources:1. U.S. Dept. of Energy/EIA

2. Environment Canada

Global Energy Related Emissions


11/23

0-15 mtonnes

16-50 mtonnes

51-100+ mtonnes GATX

NC

MI

AL

MO

KY

IN OH

NE

NM

ND

CO

SC

KS

IA

TN

WY

VA

MN

UT

OK

WI

AZ AR

AK

LA

IL

NV

OR

MT

SD

NJ

NY NH

MS

Legend

U.S. Coal fired power

generating plants

Canadian coal-fired powergenerating plants

Canadian oil sands

Sources: U.S. DOE/EIA & Environment Canada FL

WV

North America GHG Emissions (2010)Oil Sands and Power Generation

Chart 11


12/23

Tailings

Tailings: the water, clay, sand and

residual bitumen that remain after the

bitumen extraction process

Tailings ponds: used to clarify and recycle

water used for mined oil sands


13/23

>95%of produced water

recycled at Cold Lake

~3%of the Athabasca Riverflow is allocated; less

than half used

88%of water recycled at

Syncrude

Through more than 40 years oftechnical innovation, Imperial haspioneered state-of-the-art waterrecycling technology

We are steadily reducing theamount of water we need

Non thermalprocess

Reducedenergy

Cyclic Solvent Process technology

Water use

Oil sands operations require large amountsof water for processingIssue:


14/23

Steamflood, CSP

SA-SAGD, VSEP

NAE

19903D seismic

steamanalysis

1995Passiveseismic

monitoring

1995Infill

recoveryprocesses

20001966CSS

patent1978

Producedwater

recycling

1978 1979First

horizontalwell

1979 1982SAGDpatent

1982 20052005LASERpatent

PilotsLEP

Limited Entry

Perforations

2003patent

Liquid Addition

to Steam for

Enhanced RecoveryCyclic Steam

Stimulation

2007HT-PFT

patents

2007

Hi-Temp

Paraffinic Froth

Treatment

CSP Cyclic Solvent Process

Solvent Assisted SAGD

VSEP Vibratory Shear

Enhanced Process

NAE Non-Aqueous

Extraction

Integrated

Research

Program that

Builds on Each

Organizations

Strengths

Simulation Laboratories Pilots / Operations Leveraging

Fundamental Physics Analytical Models Specialized Laboratories

Upgrading Refining Specialized Laboratories

Simulation Breadth of Expertise Specialized Laboratories

IOLImperial Oil Limited(Calgary, Alberta)

URCUpstream ResearchCompany(Houston, Texas)

EMREEM Research &Engineering(Fairfax, Virginia)

CSRCorporate StrategicResearch(Clinton, New Jersey)

Focus / Strengths

Imperial Technology Innovations


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Cold Lake Technology Innovations


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Other Mining Projects

Kearl Mining ProjectBitumen Froth

Refinery

ParaffinicFroth

Treatment

Diluent

0.04%

8%

92%

X Asphaltenes

Bitumen

Sediment& water

Upgrader

NaphthenicFrothTreatment

Refinery

3.5%

96.5% Bitumen

Sediment& water

2007HT-PFT

patents

2007

Hi-Temp

Paraffinic Froth

Treatment

Kearl Technology Innovation

Process bitumen once, not twice Lower GHG intensity (~2 to 4% > average US crude refined*)

* Source: IHS CERA Oil Sands, Greenhouse Gases, and US Oil Supply Report (Nov, 2012)


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Develop thermal-solvent and solvent-based technologies leading tosustainable & profitable development of oil sands resources with a

step change environmental performance

GHG Emissions

Water Use

Tailings

Surface Footprint

Technology Vision

0.1

1

10

100

1000

0 50 100 150 200 250Temperature, C

Viscosity,cp

100% Bitumen

27.5 vol% C7

53.4 vol% C7

100% C7

15.0 vol% C7

3.45 MPag data

0.1

1

10

100

1000

0 50 100 150 200 250Temperature, C

Viscosity,cp

100% Bitumen

27.5 vol% C7

53.4 vol% C7

100% C7

15.0 vol% C7

3.45 MPag data

Water + Heat

Solvent

Chart 17


18/23

Key Emerging Technologies

Cyclic Solvent Process

Steam and

Solvent

Heat

Water

Solvent

Solventand

Bitumen

Steam and

Solvent

Heat

Water

Solvent

Solventand

Bitumen

Solvent AssistedSteam Assisted Gravity Drainage

Tailings Solvent RecoveryDry Tailings

Low-Solids Filtrate(Bitumen/Solvent)

Recycle Solvent

Solids Filtration

Solvent-wetSolids

FiltrateSolvent

Recovery

Product

SolventRecovery

Bitumen Product

RecycleSolvent Bitumen

Water

Product Cleaning (HT PFT)

Bitumen/Solvent

WashSolvent

Agglomerates

Oil Sands Ore

Bitumen Dissolution &Solids Agglomeration

SlurryPreparation

Tailings Solvent RecoveryTailings Solvent RecoveryDry TailingsDry Tailings

Low-Solids Filtrate(Bitumen/Solvent)

Recycle Solvent

Solids Filtration

Solvent-wetSolids

FiltrateSolvent

Recovery

Product

SolventRecovery

Bitumen ProductBitumen Product

RecycleSolvent Bitumen

Water

Product Cleaning (HT PFT)Product Cleaning (HT PFT)

Bitumen/Solvent

WashSolvent

AgglomeratesAgglomerates

Oil Sands OreOil Sands Ore

Bitumen Dissolution &Solids Agglomeration

SlurryPreparationNon-Aqueous Extraction

Topography indicates fines glued on surface

coarse particles

fines

PolymerPolymer


coarse particles

fines


coarse particles

fines

PolymerPolymerPolymerPolymer

Tailings Dewatering


19/23

Process: Cyclic injection of propane and production

Targets resource not currently viable (thick lean, thin clean)

~ 90% reduction in direct GHG intensity

No water requirement, non thermal

100 M$ pilot under construction in Cold Lake - start-up 2013

est

ManoCSP,

>20m,

10wt%Nabiye

(CSS)

Mano

(CSS)

CLPP

CSS, >20m, >10wt%

CSP Mulit-Cycle

Pilot

CSP Single

Cycle Pilot

Chart 19

Cyclic Solvent Process


20/23

Canadas oil sands:

- major global energy supply; NA energy security

- engine of economic growth for North America

- have been, can & will be developed responsibly

Research and development focuses:

- lower GHG emissions

- continued reduction of water use

- minimizing footprint

- tailings reclamation / elimination

Final thoughts


21/23

Exciting Growth Opportunities

development gas

Conventional

other opportunities

Syncrude

Kearl

Athabasca

Cold Lake

* Imperial Oil interest before royalties

kboed*

oil sands

oil sands

Conventional

Double production over the next decade!


22/23

Company performance

Strong SHE performance

2011 financials:

Net income $3.4 billion

ROCE 25 %

Capex & exploration $4.1 billion

Strong balance sheet

2012 first 9 months:

Net income $ 2.7 billion

ROCE 24 %

Capex & exploration $3.9 billion

Source: Reuters


23/23

Thank you !

Questions??

imo oil sands presentatio 103100022

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