sabah oil and gas conference 2014
DESCRIPTION
Sabah Oil and Gas Conference 2014. Talisman Malaysia Increasing Growth Opportunities for Sabah May 26 th , 2014. Content. Overview of Talisman Energy Sabah Growth Strategy Securing a Foundation Maximising Asset Recovery Expanding through Exploration Working with other Operators. - PowerPoint PPT PresentationTRANSCRIPT
Sabah Oil and Gas Conference 2014
Talisman Malaysia
Increasing Growth Opportunities for Sabah
May 26th, 2014
Content
Overview of Talisman Energy
Sabah Growth Strategy
Securing a Foundation
Maximising Asset Recovery
Expanding through Exploration
Working with other Operators
3NYSE : TLM | TSX : TLM www.talisman-energy.com
Talisman Energy Global OperationsTwo Core Regions : The Americas and Asia-Pacific
• 2014 production guidance 350-365 mboe/d
– Core areas 324-334 mboe/d
– Other 26-31 mboe/d
Other areas – considering alloptions
• UK – Sinopec deal lowers exposure• Norway – sales process underway• Kurdistan – Kurdamir and Topkhana
appraisal ongoing
Other areas – considering alloptions
• UK – Sinopec deal lowers exposure• Norway – sales process underway• Kurdistan – Kurdamir and Topkhana
appraisal ongoing
Core: Asia-Pacific• Generating free cash flow,
near-term exploration potential• Long life assets with high
netbacks
Core: Asia-Pacific• Generating free cash flow,
near-term exploration potential• Long life assets with high
netbacks
Core: Americas• Resource plays provide
long-term growth• Colombia – exploration and
development underway
Core: Americas• Resource plays provide
long-term growth• Colombia – exploration and
development underway
• 2013 2P reserves ~1640 mmboe
− Core areas ~1480 mmboe
− Other ~160 mmboe
4NYSE : TLM | TSX : TLM www.talisman-energy.com
Talisman Energy - Asia PacificA Core Talisman Region
Core areas
Additional Assets
Exploration
South SumatraSouth Sumatra
Malay BasinMalay Basin Sabah Basin
TangguhTangguh
0 500 1,000 1,500Km
Kitan/LamCorKitan/LamCor
VietnamNam Con Son
VietnamNam Con Son
VietnamHST/HSD
VietnamHST/HSD
Papua New Guinea
5NYSE : TLM | TSX : TLM www.talisman-energy.com
Vietnam
PeninsularMalaysia
Sarawak
Sabah
Talisman Energy in MalaysiaAssets Overview
Malaysia
TLM block
Oil field
Gas field
SB309 & SB310 (70% WI)Gross exploration acreage 13,000 km2
3-4 well exploration program planned in 2014
Kinabalu (60% WI)Operated effective 26 Dec 2012
Successful completion of 3 infill wellsCommencing redevelopment
PM-3 CAA (41% WI)Unique cross-border development
Supplying gas to two nationsTalisman’s largest operated asset
Finalizing PSC extension
PM305 & PM314 (60% WI)SAA – about 85% recovery to dateStudying options to extend field life
6NYSE : TLM | TSX : TLM www.talisman-energy.com
SabahNew Core Area anchored by Kinabalu
Kinabalu is a secure base with upside recovery opportunities
Significant acreage in a prolific and proven hydrocarbon province
Extensive infrastructure enhances exploration monetization opportunities for oil and gas
Potential Synergies with other operators to optimise operation and Development Plans
7NYSE : TLM | TSX : TLM www.talisman-energy.com
Block: SB1 Kinabalu
2012 Kinabalu Oil PSC:
Start Date: Dec 2012 (20 years license)
Operator: TLM (60%)
Partner: PETRONAS Carigali (40%)
Location
55 km NW of Labuan
28 km SW of Samarang
2 km SE of KNAG
Field Water Depth: 56 m
Discovery: 1989 and First Oil: Dec 1997
Cum. Oil Production @1/1/14 = 97 MMstb
20 Development Wells (20 active strings)
Kinabalu – Location Map Kinabalu – Block Details
LabuanLCOT (SHELL)
Samarang Complex (PCSB*)
Kinabalu KNDP-A
KNAG(PCSB)
2012 Kinabalu Oil PSC Overview
First PSC handover to International Operator
First progressive volume PSC to encourage brownfield redevelopment
First infill well : 9 months following transfer of operatorship
Redevelopment project, Concept Selection : 10 months following transfer of operatorship
8NYSE : TLM | TSX : TLM www.talisman-energy.com
Well interventions
Six Infill wells approved
Double Field Production within one year
New Platform New Facilities Additional Infill
Drilling Secondary Oil
Recovery
Exploration Success
Potential Synergies with PETRONAS Carigali in Sabah
Improve the HSE Performance
Improve Field Reliability
Existing Platform Debottlenecking Project to be completed in Q4 2014.
2012 Kinabalu Oil PSCGrowth Strategy
LP Separator KN 114st
Within Talisman Corporate Responsibility Standards
9NYSE : TLM | TSX : TLM www.talisman-energy.com
Managing Aging InfrastructureIt starts at the beginning
Additional Escape RouteCrane serviced and recertified for man-ridingHelideck Lighting Installation
Management of Change
Training & Competency
DESIGN CONSTRUCT
INSPECT
EMERGENCY RESPONSE
IDENTIFY HAZARDS
OPERATE
MAINTAIN
Cessation of Production Operations
Decommission
VERIFY
10NYSE : TLM | TSX : TLM www.talisman-energy.com
Facilities Debottlenecking
Initial Infill Drilling programme and well interventions increasing fluids throughput
Restrictions in liquid export rates
Preparation for additional offtake rates once the full field redevelopment project is implemented
Facilities DebottleneckingReady for Future Growth
Liquid Production Increase
Remove produced water prior to exportConvert LP Separator to 3 Phases
Equipment Integrity Improvement
Install Online Sand Removal System
Gas Production Increase
Modify LP Compressor to increase its capacity to minimize flaring.
11NYSE : TLM | TSX : TLM www.talisman-energy.com
Field RejuvenationMaximising use of Existing Slots
Well 6 Well 1
Well 2
Well 4Well 3
Well 5
# 4
# 3
# 5
# 1
# 6# 2
East Fault Block
Main Fault Block
Note: All Wells Are Projected
12NYSE : TLM | TSX : TLM www.talisman-energy.com
Field RejuvenationDrilling Performance to date
No Recordable Incidents (LTI, RWI, MTI)
Excellent operational performance - benefit of established Rig Contractor (20+ years in Malaysia)
Continuity of activity in Sabah – Key to Performance
0
5
10
15
20
0
20
40
60
80
Well 1 Well 2 Well 3 Well 4
NP
T (
%)
Day
s
Days Planned Days Actual NPT Actual
0
10
20
30
40
50
Well 1 Well 2 Well 3 Well 4
Co
st (
US
$MM
)
Planned Costs Actual Costs
13NYSE : TLM | TSX : TLM www.talisman-energy.com
Kinabalu RedevelopmentMaximising Recovery Factor
A Team Approach : Project Success is driven by the Integration of all Disciplines
Consider Novel ‘Cost/Schedule Saving’ Schemes ‘No Stone Unturned’
14NYSE : TLM | TSX : TLM www.talisman-energy.com
Kinabalu RedevelopmentSelected Concept Overview
Stage 1 (Early Production)
Stage 2 (Full Production)
Scope
• Installation of a 20 slot wellhead platform (WHP) bridge linked to KNDP-A.
• Maximum Use of Existing KNDP-A
• Installation of a new CPP bridge linked to the new WHP
• Gas Compression & Water Injection
Estimated 1st Oil
4Q 20164Q 2017
(Estimated 1st Injection)
Two Stage Development Secondary Recovery Implementation Increase field recovery factor to ~ 40%
New Well Head Platform
15NYSE : TLM | TSX : TLM www.talisman-energy.com
Exploration PortfolioSB310 & SB309 Prospects and Leads
Partners: TML (70%), PCSB (30%) PSC Signed; Effective Date - 26th
October 2009 Exploration period: 6 years 5 Commitment wells in SB310; 3 wells
in SB309
16NYSE : TLM | TSX : TLM www.talisman-energy.com
South Sabah SynergiesA way of working between Operators
KNNAG accommodation Helicopter Sharing Marine Vessels Spare Sharing Subsurface Data Sharing 5 Year Integrated Plans Warehousing
Facilities optimization with KN and Samarang
Gas utilization Liquid handling
Debottlenecking
Area Development Plans Maximise Utilisation of
Existing Infrastructure
17NYSE : TLM | TSX : TLM www.talisman-energy.com
Our ThemesEducationHealth Environment
Corporate Responsibility within TalismanSupporting our Growth Plans
18NYSE : TLM | TSX : TLM www.talisman-energy.com
Thank You