V COLOMBIA INVESTMENT CONFERENCE
OIL & GAS - ANH
Infraestructura para el Desarrollo de la Industria de los Hidrocarburos
Richard Bird, Vicepresidente Ejecutivo
Octubre 18 de 2012
Enbridge
 Assets: $43 billion
 Net Income: $1.3 billion
 Employees: 10,100
Core Business Segments
Norman
Wells
Zama
Fort McMurray
Edmonton
Hardisty
Quebec City
Clearbrook
Montreal
Superior
Portland
Toronto
Casper
Chicago
Salt Lake City
Patoka
2011
Adjusted
Earnings
Toronto
Cushing
2011
Adjusted
Earnings
15%
16%
63% 65%
Houston
Liquids Pipelines
Gas Distribution
Edmonton
Fort St. John
Wind Power Generation
Solar Power Generation
Waste Heat Recovery
Geothermal Power Generation
Power Transmission
Edmonton
Toronto
Sarnia
Chicago
2011
Adjusted
Earnings
3%
2011
Adjusted
Earnings
19%
Houston
Gas Pipelines
17%
Renewable Energy
3
Priority One – Operational Excellence
 Pipeline Integrity
– 4th-Generation medical
imaging crack detection
technology
 Pipeline Control
– State-of-the-art automated
proprietary systems
GE UltraScanTM
Duo with Phased
Array Ultrasound
Priority One – Operational Excellence
 Leak Detection
– Advanced technology
– Negative Wave
– Acoustic
– Temperature Sensing
– Vapour Detection
 Hydraulic Optimization
– Operating pressure
– Drag reducing agent
– Diluent
– Pump design
Multipath Ultrasonic
Flow Meter
Priority Two – Project Execution Capability
 Cost/Schedule Management
– State-of-the-art estimating,
monitoring and remediation processes
 Materials/Services Procurement
– Global sourcing capability supporting
$35 billion, five-year construction
program
 Deep Technical/Executive
Leadership Experience
– Major Projects Management
department of 1,150 executed $11
billion 2009 – 2011 program
Project Status
15
8
1
1
Better than
Budget &
On-Time
2
On Budget
& On-Time
3
Over
Budget
& Delayed
6
Priority Three – Environmental Sustainability
 Neutral Footprint Policy
– Acquisition and set aside of natural habitat
acreage equivalent to area of right of way
disturbance
 Renewable Energy Development
– 1,000 megawatts of wind and solar power;
technology development investment
 Greenhouse Gases
– 21% reduction from 1990 to 2010
Energy 4 Everyone Foundation – Ghana, Africa
Enbridge International Focus
 Energy Infrastructure
– Crude Oil
Focus Regions/Countries
– Refined Products
Latin America
Asia Pacific
– Natural Gas Pipeline and
Storage Facilities
• Colombia
• Australia
• Peru
 Country Criteria
– Stable sociopolitical environment
– Favourable fiscal, legal and
regulatory climate
– Strong energy supply
fundamentals
9
Colombia Investment Climate
Colombia Crude Oil Market Balance (kb/d)
1,600
 Supportive
economic/regulatory and
royalty structure
1,400
1,200
1,000
800
600
400
200
2010 2011e 2012f 2013f 2014f 2015f 2016f 2017f 2018f
Production
Consumption
Exports
Source: Business Monitor International
Asian Demand Growth (Quadrillion BTU)
350
300
250
200
150
100
50
OECD Asia
China
India
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
0
2013
 Asian demand growth
2009
2012
 Transportation
constraints
0
2011
 Crude production growth;
increasing heavy slate
Other Non-OECD Asia
Source: EIA
10
Oleoducto al Pacífico (OAP)
Buenaventura
CPO 9
CPE 6
Tumaco
OMBU
11
OAP Attributes
 An independently-operated
Colombian solution to crude
transport constraints
 Flexibility to serve large and small
producers
 Improved netbacks for producers
facing high costs and limited
transport options
 Separation of capital investment
requirements from shipping
contracts
 Benefits to the national interest,
stimulating the upstream sector and
economy as a whole
US$ millions
 Direct access to alternative / high
growth Pacific markets
Significant Potential Savings
US$500 mm per year
Lower cost
600
to transport
diluent, if a
500
91
return
diluent line
400
300
282
Lower costs
related to
lower diluent
requirements
200
100
0
165
Lower
estimated
transportatio
n cost
12
Main Benefits for Colombia
 Reduce reliance on one port
 Diversify markets
 Higher netbacks on its royalty
oil
 Increased income for
municipalities
 Supporting infrastructure development for
undeveloped regions
 Opportunity for the government to consolidate
governability in difficult access areas.
13
Key Conclusions
• Changing crude oil fundamentals
• Unique opportunity for Colombia
• OAP is a viable project with many benefits to the country and
to producers
• Government support is key
14