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
Talisman Energy Global Operations
Two Core Regions : The Americas and Asia-Pacific
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
•
Other areas – considering all
options
• UK – Sinopec deal lowers exposure
• Norway – sales process underway
• Kurdistan – Kurdamir and Topkhana
appraisal ongoing
2014 production guidance 350-365 mboe/d
• 2013 2P reserves ~1640 mmboe
–
Core areas 324-334 mboe/d
−
Core areas ~1480 mmboe
–
Other 26-31 mboe/d
−
Other ~160 mmboe
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Talisman Energy - Asia Pacific
A Core Talisman Region
Vietnam
HST/HSD
Malay Basin
Vietnam
Nam Con Son
Sabah Basin
Tangguh
Papua
New Guinea
South Sumatra
Kitan/LamCor
Core areas
Additional Assets
Exploration
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0
500
1,000
Km
1,500
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Talisman Energy in Malaysia
Assets Overview
TLM block
Oil field
Gas field
Vietnam
Malaysia
SB309 & SB310 (70% WI)
Gross exploration acreage 13,000 km 2
3-4 well exploration program planned in
2014
PM-3 CAA (41% WI)
Unique cross-border development
Supplying gas to two nations
Talisman’s largest operated asset
Finalizing PSC extension
Kinabalu (60% WI)
Operated effective 26 Dec 2012
Successful completion of 3 infill wells
Commencing redevelopment
Sabah
PM305 & PM314 (60% WI)
Peninsular
Malaysia
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SAA – about 85% recovery to date
Studying options to extend field life
Sarawak
5
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Sabah
New 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
Near Term
Kinabalu Transfer of
Operatorship
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Future Growth
Exploration
Success
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2012 Kinabalu Oil PSC
Overview
Kinabalu – Location Map
Kinabalu – Block Details
 Block: SB1 Kinabalu
Samarang Complex
(PCSB*)
 2012 Kinabalu Oil PSC:
 Start Date: Dec 2012 (20 years license)
 Operator: TLM (60%)
 Partner: PETRONAS Carigali (40%)
 Location
 55 km NW of Labuan
KNAG
(PCSB)
 28 km SW of Samarang
Kinabalu
KNDP-A
 2 km SE of KNAG
 Field Water Depth: 56 m
Labuan
LCOT (SHELL)
 Discovery: 1989 and First Oil: Dec 1997
 Cum. Oil Production @1/1/14 = 97 MMstb
 20 Development Wells (20 active strings)
 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
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2012 Kinabalu Oil PSC
Growth Strategy
Kinabalu
Production
Operations
 Improve the
HSE
Performance
 Improve Field
Reliability
 Existing Platform
Debottlenecking
Project to be
completed in Q4
2014.
LP Separator
Early
Rejuvenation
Redevelopment
 New Platform
 New Facilities
 Additional Infill
Drilling
 Secondary Oil
Recovery
 Well
interventions
 Six Infill wells
approved
 Double Field
Production
within one year
South Sabah
Growth & Synergies
 Exploration
Success
 Potential
Synergies with
PETRONAS
Carigali in Sabah
KN 114st
Within Talisman Corporate Responsibility Standards
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Managing Aging Infrastructure
It starts at the beginning
IDENTIFY
HAZARDS
DESIGN
CONSTRUCT
OPERAT
E
Decommission
Management of Change
INSPECT
Training & Competency
Cessation of
Production
Operations
MAINTAI
N
VERIFY
Helideck Lighting Installation
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Crane serviced and recertified for man-riding
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EMERGENCY
RESPONSE
Additional Escape Route
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Facilities Debottlenecking
Ready for Future Growth
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
Fluid Production Rate (kbpd)
2019
2017
2015
2013
2011
2009
2007
2005
2003
2001
1999
Gas Production Rate (MMscfd)
Liquid Production Increase


Remove produced water prior to export
Convert 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.
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Field Rejuvenation
Maximising use of Existing Slots
Well 4
Well 3
Well 5
Main Fault Block
East Fault Block
Well 2
#3
#4
#5
#1
#2
Well 6
Well 1
#6
Note: All Wells Are Projected
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Field Rejuvenation
20
60
Cost (US$MM)
80
NPT (%)
Days
Drilling Performance to date
50
40
15
30
40
10
20
20
5
10
0
0
Well 1
Well 2
Days Planned
Well 3
Days Actual
Well 4
0
Well 1
NPT Actual
P
 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
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Well 2
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Kinabalu Redevelopment
Maximising Recovery Factor
Consider Novel ‘Cost/Schedule Saving’ Schemes
‘No Stone Unturned’
A Team Approach : Project Success is driven by
the Integration of all Disciplines
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Kinabalu Redevelopment
Selected Concept Overview
 Two Stage Development
 Secondary Recovery Implementation
 Increase field recovery factor to ~ 40%
Stage 1
(Early Production)
• Installation of a 20
slot wellhead platform
(WHP) bridge linked
to KNDP-A.
• Maximum Use of
Existing KNDP-A
Scope
Estimated
1st Oil
4Q 2016
Stage 2
(Full Production)
• Installation of a new CPP
bridge linked to the new
WHP
• Gas Compression & Water
Injection
4Q 2017
(Estimated 1st Injection)
New Well Head Platform
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Exploration Portfolio
SB310 & SB309 Prospects and Leads




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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
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South Sabah Synergies
A way of working between Operators
KNNAG / Kinabalu
Operational
Integration







KNNAG accommodation
Helicopter Sharing
Marine Vessels
Spare Sharing
Subsurface Data Sharing
5 Year Integrated Plans
Warehousing
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Samarang / Kinabalu
Network Optimization
 Facilities optimization with KN
and Samarang
 Gas utilization
 Liquid handling
Debottlenecking
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Joint Development
Plans
 Area Development Plans
 Maximise Utilisation of
Existing Infrastructure
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Corporate Responsibility within Talisman
Supporting our Growth Plans
Our Themes
 Education
 Health
 Environment
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Thank You
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