Oil Search Limited, Company Intelligence Report


#43415

75pages

GlobalData

$ 1000

In Stock


Oil Search Limited is an independent company engaged in the exploration and development of crude oil and natural gas mainly in the Papua New Guinea (PNG) region. It is the largest oil and gas producer in the country and operates all of the PNG’s currently producing oil and gas fields. The company’s shares are listed on the Australian and the Port Moresby Stock Exchanges with a market capitalization of around $9 billion at the end of 2010. The company’s producing assets are located in PNG region and its exploration assets are located in Yemen, Iraq and Tunisia. The company’s major producing areas in the PNG region are Kutubu and Moran Oil Projects, both located in the Southern Highlands Provinces of PNG. These projects account for more than 80% of the its total production and the company has been operating these fields for the past 15-20 years. These fields are mature now and hence, showing a declining trend in the production. As a result of this natural decline, the company reported a total oil and gas production of around 7.7 MMboe in 2010, around 5.7% decline over the previous year’s volume. However, the company is undertaking several redevelopment programmes in these projects to offset this decline and obtain a steady stream of cash flows which can be further invested in the upcoming projects.

Scope
  • Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations.
  • Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
  • SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
  • Key Events for 2011: This section provides the company’s expected operational and financial activities in 2011. This section maps the company’s focus for 2011 in nut shell.
  • Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets.
  • Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities.
  • M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period.
  • Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
  • Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
  • Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.
Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to -
  • Provide detailed analysis to those who are interested in knowing the companies’ existing and future business strategies.
  • Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
  • Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
  • Use the analysis for strategy and planning, M&A identifications, and competitor analysis.
Table of Contents

1 Table of Contents

1 Table of Contents 3
1.1 List of Tables 5
1.2 List of Figures 6

2 Oil Search Limited, Company Overview 7


3 Oil Search Limited, Key Events for 2011 12


4 Oil Search Limited, Key Highlights 13

4.1 Offsetting Decline from Oilfields through Redevelopment Programs; High Realized Oil Prices Increasing Cashflows 13
4.2 PNG LNG Project Transforming Companys Production Profile from Oil to Gas 14

5 Oil Search Limited, SWOT Analysis 16
5.1 Strength 16
5.1.1 Strong Liquidity Position 16
5.1.2 Consistent Rise in Reserve Replacement Ratio 17
5.2 Weakness 17
5.2.1 Continual Production Declines 17
5.2.2 Limited Geographic Presence 18
5.3 Opportunities 18
5.3.1 The PNG LNG Project 18
5.3.2 Exploration Activities in the Middle East and North Africa 19
5.4 Threats 19
5.4.1 Delay in the Execution of the PNG LNG Project 19

6 Oil Search Limited, Goals and Strategies 20
6.1 Optimization of Production Through New Field Developments and PNG Projects 20
6.2 Exploring New Growth Hubs Outside PNG 21

7 Oil Search Limited, Production Overview 22
7.1 Production Profile 22
7.2 PNG 23
7.2.1 Kutubu 23
7.2.2 Moran 24
7.2.3 SE Mananda 25
7.2.4 Gobe 26
7.2.5 Hides GTE 27

8 Oil Search Limited, Exploration Activities 29

9 Oil Search Limited, Forecast Production and Financial Statements 31
9.1 Income Statement (20082015) 33
9.2 Balance Sheet (20082015) 34
9.3 Cash Flow Statement (20082015) 35
9.4 Financial Ratios 36

10 Oil Search Limited, Valuation 39
10.1 Net Asset Value 39

11 Oil Search Limited , Peer Comparision 42
11.1 Share Price Performance 42
11.2 Operational and Financial Performance 43
11.3 Key Financial and Operational Ratio 45

12 Oil Search Limited, Detailed Operational and Financial Metrics 46
12.1 Oil Search Limited, Reserves and Production 46
12.1.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 20062010 46
12.1.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 20062010 47
12.1.3 Total Crude Oil and Natural Gas Reserve Changes, 20062010 49
12.2 Oil Search Limited, Crude Oil/Liquids Production and Reserve 50
12.2.1 Crude Oil/Liquids Production and Reserve Trend, 20062010 50
12.2.2 Crude Oil Production and Reserves By Country/Region, 20062010 51
12.2.3 Crude Oil/Liquids Reserve Changes, 20062010 53
12.3 Oil Search Limited, Natural Gas Production and Reserve 54
12.3.1 Natural Gas Production and Reserve Trend, 20062010 54
12.3.2 Natural Gas Production and Reserves, By Country/Region, 20062010 55
12.3.3 Natural Gas Reserve Changes, 20062010 57
12.4 Oil Search Limited, Total Crude Oil and Natural Gas Reserves Life Index 58
12.4.1 Total Crude Oil and Natural Gas Reserves Life Index, 20062010 58
12.4.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 20062010 59
12.5 Oil Search Limited, Allocation of the Upstream Capital Expenditure 61
12.5.1 Upstream Capital Expenditure, 20062010 61
12.5.2 Exploration and Development Costs, By Country/Region, 20062010 62
12.6 Oil Search Limited, Oil and Gas Cost Per boe, $/boe 63
12.6.1 Oil and Gas Cost Per boe, $/boe, 20062010 63
12.6.2 Oil and Gas Cost Per boe, $/boe, By Country/Region, 20062010 65
12.7 Oil Search Limited, Oil and Gas Production Replacement Ratio 66
12.7.1 Oil and Gas Production Replacement Ratio, 20062010 66
12.7.2 Oil and Gas Production Replacement Ratio, By Country/Region, 20062010 67
12.8 Oil Search Limited, Oil and Gas Revenue and Expenses 69
12.8.1 Oil and Gas Revenue and Expenses, 20062010 69
12.8.2 Oil and Gas Revenue and Expenses, By Country/Region, 20062010 70
12.9 Oil Search Limited, Oil and Gas Revenue and Expenses, Per boe 71
12.9.1 Oil and Gas Revenue and Expenses, By boe, 20062010 71
12.9.2 Oil and Gas Revenue and Expenses Per boe, By Country/Region, 20062010 72

13 Appendix 73
13.1 Abbreviations 73
13.2 Methodology 73
13.2.1 Coverage 73
13.2.2 Secondary Research 74
13.2.3 Primary Research 74
13.2.4 Expert Panel Validation 74
13.3 Methodology for Company Valuation 74
13.4 Contact Us 75
13.5 Disclaimer 75
Table 1: Oil Search Limited, Key Events, January 2010January 2011 11
Table 2: Oil Search Limited, PNG LNG Gas Sales Agreements 15
Table 3: Oil Search Limited, Upstream Growth Profile, MMboe, 20102015 28
Table 4: Oil Search Limited, Forecast Production, 20072015 31
Table 5: GlobalData, Price Forecasts, 20112015 31
Table 6: Oil Search Limited, Income Statement ($m), 20082015 33
Table 7: Oil Search Limited, Balance Sheet ($m), 20082015 34
Table 8: Oil Search Limited, Cash Flow Statement ($m), 20082015 35
Table 9: Oil Search Limited, Profitability Ratios, 20082015 36
Table 10: Oil Search Limited, Other Financial Ratios, 20082015 37
Table 11: Oil Search Limited, Capital Market Ratios, 20092011 38
Table 12: GlobalData, Price Forecasts, 20112015 39
Table 13: Oil Search Limited, Net Asset Value, 2011 40
Table 14: Oil Search Limited, Prospective Acreage, 2011 40
Table 15: Oil Search Limited, NPV of Natural Gas Reserves, $/Mcf, 2011 41
Table 16: Oil Search Limited, NPV of Oil/NGL Reserves, $/bbl, 2011 41
Table 17: Oil Search Limited, NPV of Total Oil and Natural Gas Reserves , $/boe, 2011 41
Table 18: Oil Search Limited, Sensitivity Analysis on Fair Value (AUD per share), 2011 41
Table 19: Oil Search Limited Vs. Peer Group, Operational and Financial Performance, 2010 43
Table 20: Oil Search Limited and Peer Group Comparison, Financial Ratios, 2010 45
Table 21: Oil Search Limited, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 20062010 46
Table 22: Oil Search Limited, Total Crude Oil & Natural Gas Production and Reserves, By Country/Region, MMboe, 20062010 48
Table 23: Oil Search Limited, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 20062010 49
Table 24: Oil Search Limited, Crude Oil Production and Reserves Metrics, MMbbl, 20062010 50
Table 25: Oil Search Limited, Crude Oil Production and Reserves, By Country/Region, MMbbl, 20062010 52
Table 26: Oil Search Limited, Crude Oil Reserve Changes, MMbbl, 20062010 53
Table 27: Oil Search Limited, Natural Gas Production and Reserves Metrics, Bcf, 20062010 54
Table 28: Oil Search Limited, Natural Gas Production and Reserves, By Country/Region, Bcf, 20062010 56
Table 29: Oil Search Limited, Natural Gas Reserve Changes, Bcf, 20062010 57
Table 30: Oil Search Limited, Oil and Gas Reserves Life Index, Years, 20062010 58
Table 31: Oil Search Limited, Oil and Gas Reserves Life Index, By Country/Region, Years, 20062010 60
Table 32: Oil Search Limited, Upstream Capital Expenditure, $m, 20062010 61
Table 33: Oil Search Limited, Exploration and Development Costs, By Country/Region, $m, 20062010 62
Table 34: Oil Search Limited, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 20062010 64
Table 35: Oil Search Limited, Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, By Country/Region, 2006-2010 65
Table 36: Oil Search Limited, Oil and Gas Production Replacement Ratio, %, 20062010 66
Table 37: Oil Search Limited, 3-Year Wt.Avg. Oil and Gas Production Replacement Ratio, By Country/Region, %, 20062010 68
Table 38: Oil Search Limited, Revenue and Expenses, $m, 20062010 69
Table 39: Oil Search Limited, Revenue and Expenses, By Country/Region, $m, 20062010 70
Table 40: Oil Search Limited, Oil and Gas Revenue and Expenses, $/boe, 20062010 71
Table 41: Oil Search Limited, Oil and Gas Revenue and Expenses, $/boe, By Country/Region, 20062010 72
Figure 1: Oil Search Limited, Global Operations, 2011 7
Figure 2: Oil Search Limited, Production Mix, MMboe, 20072010 8
Figure 3: Oil Search Limited, Share Price Movement, June 2010June 2011 10
Figure 4: Oil Search Limited, Total Production, MMboe, 20072013 13
Figure 5: Oil Search Limited, Oil and Gas Mix (%), 20072015 14
Figure 6: Oil Search Limited, Operating Cash Flows ($m), 20062010 16
Figure 7: Oil Search Limited, Cash and Cash Equivalents and Capex ($m), 20062010 17
Figure 8: Oil Search Limited, Total Production (MMboe), 20072010 18
Figure 9: Oil Search Limited, Total Production, MMboe, 20072015 22
Figure 10: Oil Search Limited, Production Mix 20072015 23
Figure 11: Oil Search Limited, Kutubu Oil Project, Total Production, MMbbl, 20042015 24
Figure 12: Oil Search Limited, Moran Oil Project Production, MMbbl, 20072015 25
Figure 13: Oil Search Limited, SE Mananda Oil Project Production, MMbbl, 20072015 26
Figure 14: Oil Search Limited, Gobe Oil Project Production, MMbbl, 20072015 27
Figure 15: Oil Search Limited, Hides Oil Project Production, MMboe, 20072015 28
Figure 16: Oil Search Limited, Exploration Expenditure as Percentage of Total Capital Expenditure (%), 20082010 30
Figure 17: Oil Search Limited and Peer Group, Relative Share Price Performance Index, May 2010May 2011 42
Figure 18: Oil Search Limited and its Peers, Per Boe Parameters, 2010 44
Figure 19: Oil Search Limited, Total Reserves and Production, MMboe, 2010 44
Figure 20: Oil Search Limited, Total Crude Oil and Natural Gas, Production and Reserves, MMboe, 2006-2010 46
Figure 21: Oil Search Limited, Total Oil & Gas Reserves, End of Period, By Country/Region, MMboe, 20062010 47
Figure 22: Oil Search Limited, Total Oil & Gas Production, By Country/Region, MMboe, 20062010 47
Figure 23: Oil Search Limited, Total Crude Oil and Natural Gas Reserve Changes, MMboe, 2010 49
Figure 24: Oil Search Limited, Crude Oil Production and Reserves Metrics, MMbbl, 2006-2010 50
Figure 25: Oil Search Limited, Oil Reserves, End of Period, By Country/Region, MMbbl, 20062010 51
Figure 26: Oil Search Limited, Oil Production, By Country/Region, MMbbl, 20062010 51
Figure 27: Oil Search Limited, Crude Oil Reserve Changes, MMbbl, 2010 53
Figure 28: Oil Search Limited, Natural Gas Production and Reserves Metrics, Bcf, 20062010 54
Figure 29: Oil Search Limited, Gas Reserves, End of Period, By Country/Region, Bcf, 20062010 55
Figure 30: Oil Search Limited, Gas Production, By Country/Region, Bcf, 20062010 55
Figure 31: Oil Search Limited, Natural Gas Reserve Changes, Bcf, 2010 57
Figure 32: Oil Search Limited, Oil and Gas Reserves Life Index, Years, 20062010 58
Figure 33: Oil Search Limited, Gas Reserve Life Index, By Country/Region, Years, 20062010 59
Figure 34: Oil Search Limited, Oil & Gas Reserve Life Index, By Country/Region, Years, 20062010 59
Figure 35: Oil Search Limited, Oil Reserve Life Index, By Country/Region, Years, 20062010 60
Figure 36: Oil Search Limited, Upstream Capital Expenditure, $m, 20062010 61
Figure 37: Oil Search Limited, 3Year Wt.Avg., Reserves Replacement, Finding and Development Costs, Finding Cost and Proved Acquisition Costs Per boe, $/boe, 20062010 63
Figure 38: Oil Search Limited, 3-Year Wt.Avg., Oil and Gas Production Replacement Ratio, %, 20062010 66
Figure 39: Oil Search Limited, 3-Year Wt. Avg. Oil & Gas F&D Production Replacement, By Country/Region, %, 20062010 67
Figure 40: Oil Search Limited, 3Year Wt. Avg. Oil & Gas RRC Production Replacement, By Country/Region, %, 20062010 67
Figure 41: Oil Search Limited, Revenue and Expenses, $m, 20062010 69
Figure 42: Oil Search Limited, Oil and Gas Revenue and Expenses, $/boe, 20062010 71