Company Presentation - Maersk Oil
Company Presentation - Maersk Oil
Company Presentation - Maersk Oil
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Introduction to <strong>Maersk</strong> <strong>Oil</strong>
Agenda<br />
The A.P. Moller - <strong>Maersk</strong> Group<br />
<strong>Maersk</strong> <strong>Oil</strong> overview<br />
<strong>Maersk</strong> <strong>Oil</strong> operating activities<br />
<strong>Maersk</strong> <strong>Oil</strong> exploration
1904<br />
The A.P. Moller – <strong>Maersk</strong> Group was<br />
established in 1904…<br />
<strong>Company</strong><br />
established<br />
1928 1962 1964 1972 1972<br />
First gas export in<br />
Denmark<br />
First oil in<br />
Algeria<br />
<strong>Maersk</strong> Drilling<br />
established<br />
P&O Nedlloyd acquired<br />
<strong>Oil</strong> and gas interests<br />
acquired in the UK<br />
1975 1984 1994 1998 1999 2005<br />
2011<br />
First containerised<br />
vessels<br />
First liner service between<br />
US and Asia<br />
First tanker vessel added<br />
to the <strong>Maersk</strong> fleet<br />
<strong>Maersk</strong> <strong>Oil</strong> established<br />
and Danish oil and gas<br />
activities initiated<br />
Dansk Supermarked<br />
(retail business) established<br />
First oil in Qatar Safmarine and<br />
Sea-Land acquired<br />
First oil in<br />
Denmark<br />
<strong>Oil</strong> and gas interests<br />
acquired in the US<br />
Gulf of Mexico & Brazil
…and today<br />
2012<br />
The A.P. Moller - <strong>Maersk</strong> Group is a worldwide<br />
conglomerate. We operate in some 130 countries and<br />
have a workforce of some 108,000 employees.<br />
In addition to owning one of the world’s largest shipping<br />
companies, we’re involved in a wide range of activities in<br />
the energy, logistics, retail and manufacturing industries.
Annual Report 2011<br />
Revenue in USD million<br />
APMM<br />
<strong>Maersk</strong> <strong>Oil</strong><br />
Net result in USD million<br />
APMM<br />
<strong>Maersk</strong> <strong>Oil</strong><br />
2011<br />
60,230<br />
12,616<br />
2011<br />
3,377<br />
2,061<br />
2010<br />
56,090<br />
10,250<br />
2010<br />
5,018<br />
1,659<br />
<strong>Maersk</strong> <strong>Oil</strong> is a central part of the A.P. Moller – <strong>Maersk</strong><br />
Group, and has a track record of turning challenging oil<br />
and gas fields into commercial successes.<br />
<strong>Maersk</strong> <strong>Oil</strong> focuses on pioneering technologies to operate<br />
safely, creating value for partners and host governments.
Agenda<br />
The A.P. Moller - <strong>Maersk</strong> Group<br />
<strong>Maersk</strong> <strong>Oil</strong> overview<br />
<strong>Maersk</strong> <strong>Oil</strong> operating activities<br />
<strong>Maersk</strong> <strong>Oil</strong> exploration
<strong>Maersk</strong> <strong>Oil</strong> history<br />
1962 Establishment of the<br />
Dansk Undergrunds<br />
Consortium (DUC) and<br />
awarded the concession<br />
for the Danish North Sea<br />
1966 First discovery in<br />
the Danish North Sea at<br />
the Kraka field<br />
1972 First oil<br />
production in<br />
the Danish<br />
North Sea, the<br />
Dan field<br />
1975 <strong>Maersk</strong> <strong>Oil</strong> became<br />
operator of the DUC<br />
Exploration and field<br />
development in Denmark<br />
continues<br />
1984 First gas<br />
from exports<br />
from a Danish<br />
field, Tyra<br />
<strong>Maersk</strong> <strong>Oil</strong> increases oil production<br />
and expands geographically:<br />
2002 Kazakhstan<br />
2005 Angola, Norway and the UK<br />
2006 The U.S. Gulf of Mexico<br />
2007 Brazil<br />
2010 Greenland<br />
2011 Abu Dhabi<br />
1960s: 1970s: 1980s: 1990s: 2000s:<br />
1990 <strong>Maersk</strong> <strong>Oil</strong> enters Algeria<br />
as non-operator<br />
1992 <strong>Maersk</strong> <strong>Oil</strong> signs EPSA<br />
agreement with Qatar<br />
1994 First oil from Qatar’s giant<br />
Al Shaheen field<br />
1994 <strong>Maersk</strong> <strong>Oil</strong> breaks first of<br />
several horizontal well length<br />
records
<strong>Company</strong> vision<br />
<strong>Maersk</strong> <strong>Oil</strong>: The natural upstream oil and gas partner; navigating<br />
complexity, unlocking potential.
<strong>Maersk</strong> <strong>Oil</strong>:<br />
the natural upstream oil and gas partner<br />
Exploration and appraisal Development<br />
Exploration &<br />
Lease acquisition<br />
Upstream<br />
Economic<br />
evaluation<br />
Development<br />
planning<br />
Midstream<br />
Drilling and<br />
completion<br />
Production<br />
facilities<br />
Downstream<br />
Production<br />
Field<br />
Abandonment
<strong>Maersk</strong> <strong>Oil</strong> operates around 625,000 barrels<br />
of oil and gas equivalent per day<br />
USA<br />
Greenland<br />
United Kingdom<br />
Brazil<br />
Algeria<br />
Angola<br />
Operated and Non-Operated Production<br />
Exploration and development activities only<br />
Norway<br />
Denmark<br />
Kazakhstan<br />
Iraq<br />
Qatar<br />
Abu-Dhabi<br />
Qatar<br />
Kazakhstan<br />
UK<br />
Denmark<br />
1,000 bbls oil equivalent per day<br />
Navigating complexity, unlocking potential<br />
900<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2001<br />
2003<br />
2005<br />
2007<br />
2009<br />
2011
<strong>Maersk</strong> <strong>Oil</strong> is among the top 30 independent<br />
oil and gas producing companies worldwide<br />
Majors<br />
National oil<br />
companies<br />
International<br />
independents
Values<br />
At the heart of <strong>Maersk</strong> <strong>Oil</strong> are the A.P. Moller – <strong>Maersk</strong> Group values<br />
• Constant Care<br />
Take care of today, actively prepare for tomorrow<br />
• Humbleness<br />
Listen, learn, share, give space to others<br />
• Uprightness<br />
Our word is our bond<br />
• Our employees<br />
The right environment for the right people<br />
• Our name<br />
The sum of our values, passionately striving higher
Our over 3,200 staff<br />
members benefit from:<br />
• An innovative environment with<br />
in-depth technical expertise<br />
• Room for individuality and diversity<br />
• Early responsibility and empowerment<br />
• Reward for high performance<br />
• Worldwide career opportunities<br />
• A graduate programme combining on the job<br />
training and business acumen<br />
• Over 30 years of offshore operational expertise<br />
• Over 15 years of international production<br />
operations<br />
• More than 220 geoscientists and 600 engineers<br />
Progressive technical ladders and career development plans<br />
support employee and company objectives
Core Competencies<br />
<strong>Maersk</strong> <strong>Oil</strong> is known for:<br />
• Turning marginal and challenging fields<br />
into commercial successes<br />
• Executing large and complex projects on<br />
time and budget<br />
• Extending technical and operational<br />
performance through innovation<br />
• Deployment of technology<br />
• Quick and agile decision-making thanks to<br />
a lean organisation<br />
• Financial power of a major, financial clout<br />
and global relations of a super major due<br />
to extensive <strong>Maersk</strong> Group leverage.
Innovative solutions<br />
<strong>Maersk</strong> <strong>Oil</strong> has used<br />
innovation to push its<br />
operational performance<br />
• Horizontal well drilling technology – we<br />
are the true pioneers of this expertise<br />
• Well completion and production<br />
technology has added a new dimension in<br />
cost effective reservoir management<br />
• Maximum integration and flexibility<br />
between different field developments -<br />
key in Denmark and the UK<br />
• Platform design e.g. <strong>Maersk</strong> <strong>Oil</strong> patented<br />
the unmanned Star platform reducing<br />
field development costs considerably.
Safety is our number one priority<br />
<strong>Maersk</strong> <strong>Oil</strong> is committed to Incident<br />
Free operations. This commitment<br />
is underpinned by two initiatives:<br />
• Leading Safety targets the human element<br />
in safety issues, looking at the culture and<br />
behaviour of the workforce and training people<br />
to be more safety aware.<br />
• Process Safety targets the process<br />
element of operations and includes management<br />
of safety systems, design and engineering of<br />
facilities and equipment and hazard identification<br />
and assessment.<br />
Incident-Free <strong>Maersk</strong> <strong>Oil</strong><br />
Key elements in <strong>Maersk</strong> <strong>Oil</strong>’s HSE policy:<br />
�An incident-free operation<br />
�Safety prioritised over oil production or<br />
economic efficiency<br />
�Safety training emphasised<br />
�Constant review of safety procedures<br />
�Promote an open culture where people feel<br />
free to express themselves on HSE issues<br />
�Reward people for intervening when they<br />
see a safety hazard.
Responsible approach to the environment<br />
CO2 emission reduction<br />
•Member of World Bank's Gas Flaring<br />
Reduction Partnership since 2009.<br />
•Significant cut in flaring in past years,<br />
being on target for 50% reduction by 2012<br />
compared with 2007 levels.<br />
•Between 2009 and 2010 CO2 emissions<br />
per unit of production went down by 20%.<br />
•<strong>Maersk</strong> <strong>Oil</strong> is currently discussing with<br />
potential partners opportunities for storing<br />
CO2 emissions from power plants<br />
underground (CCS), both onshore and<br />
offshore.<br />
Environment<br />
Managing our impacts: Systems and<br />
Preparedness<br />
�Main operating units adhere to the<br />
international ISO 14001 standard for<br />
Environmental Management.<br />
�<strong>Oil</strong> Spill Preparedness: New enhanced risk<br />
assessments on all new wells,<br />
strengthening of critical standards for well<br />
barriers and specifications for well control<br />
equipment in response to the lessons<br />
learned with the GOM Macondo incident.
Our challenges<br />
• Strong demand for oil and gas<br />
• Operational environment more<br />
challenging<br />
• Increased drive for sound<br />
environmental performance<br />
• Battle for talent<br />
Our solutions<br />
• Strategic partnerships with<br />
a clear value proposition<br />
• Innovation<br />
• Focus on running a safe and<br />
environmentally responsible operation<br />
• Early responsibility in an agile<br />
organisation<br />
We believe that we have a significant role to play in<br />
the future security of energy supply to the world
Agenda<br />
The A.P. Moller - <strong>Maersk</strong> Group<br />
<strong>Maersk</strong> <strong>Oil</strong> general overview<br />
<strong>Maersk</strong> <strong>Oil</strong> operating activities<br />
<strong>Maersk</strong> <strong>Oil</strong> exploration
Denmark<br />
• Entered in 1962, first oil in 1972<br />
• Partners: Shell and Chevron,<br />
<strong>Maersk</strong> <strong>Oil</strong> is the operator<br />
• Production of approx. 200,000<br />
barrels of oil/day and up to 700<br />
million cubic feet export gas/day<br />
• 15 fields and 50 platforms<br />
• 2-3 drilling rigs in operation<br />
• More than 1,000 people employed.
Qatar<br />
• Entered in 1992, first oil in 1994<br />
• Partner: Qatar Petroleum, 100%<br />
equity stake by <strong>Maersk</strong> <strong>Oil</strong><br />
• Production of 300,000 barrels of<br />
oil/day<br />
• Some 30 platforms<br />
• 2-4 drilling rigs in operation<br />
• More than 600 people<br />
employed.
United<br />
Kingdom<br />
• Entered in 2005<br />
• Multiple partnerships<br />
• Production of some 40,000 barrels of<br />
oil/day<br />
• 14 oil and gas fields in production<br />
• <strong>Maersk</strong> <strong>Oil</strong> operator of 7 producing<br />
fields and involved in 50 exploration<br />
licences<br />
• Several discoveries under evaluation<br />
including Golden Eagle, Culzean and<br />
Flyndre<br />
• About 350 people employed.
Kazakhstan<br />
• Entered in 2000, production<br />
in 2002<br />
• Partners: Arawak, Partex<br />
and Oman <strong>Oil</strong><br />
• Production of some 7,000 barrels<br />
of oil/day<br />
• Embarking on Field Development<br />
Plan which will increase production<br />
to 30,000 boepd<br />
• About 270 people employed.
Algeria<br />
• Entered in 1990<br />
• Anadarko operator with Sonatrach,<br />
Eni and <strong>Maersk</strong> <strong>Oil</strong> as non-operating<br />
partners<br />
• <strong>Maersk</strong> <strong>Oil</strong> has a production share of<br />
23,000 barrels of oil per day<br />
• 15 producing fields<br />
• <strong>Maersk</strong> <strong>Oil</strong> has been involved in 33<br />
exploration wells and 19 discoveries<br />
• Development of the El Merk project<br />
is in progress with production<br />
planned to start in 2012 and an<br />
expected 11,000 boepd.
Agenda<br />
The A.P. Moller - <strong>Maersk</strong> Group<br />
<strong>Maersk</strong> <strong>Oil</strong> general overview<br />
<strong>Maersk</strong> <strong>Oil</strong> operating activities<br />
<strong>Maersk</strong> <strong>Oil</strong> exploration
Deepwater exploration<br />
activities in Angola<br />
• Entered in 2005<br />
• Partners: Sonangol, Devon,<br />
Odebrecht and Svenska<br />
• Block 16: Field Development Plan<br />
being prepared for Chissonga<br />
• Block 23: Azul 1 well makes<br />
discovery, analysis ongoing<br />
• 3D seismic surveys in Blocks 8 and<br />
exploration drilling underway in<br />
Block 23<br />
• Exploration and appraisal drilling<br />
planned for 2012-2013 on blocks<br />
8, 16, 23.
Exploration activities<br />
in Brazil taking off<br />
• Entered in 2001<br />
• Partners: Petrobras, BP, OGX,<br />
Anadarko, Videocon and Bharat<br />
• In 2010, bought Brazilian assets of<br />
SK Energy including 3 licences<br />
• 2 operated and 6 non-operated<br />
licences<br />
• 2 operated and up to 6<br />
non-operated exploration<br />
wells to be drilled in 2011-2012<br />
• Polvo production: non-operated with<br />
<strong>Maersk</strong> <strong>Oil</strong>’s entitlement at 8,000<br />
boepd out of a total 20,000 boepd.
Greenland – harsh<br />
environment, big<br />
potential<br />
• Entered in 2010<br />
• Partner: Nunaoil with a 12.5% share<br />
• Exploration activities in offshore<br />
block 9, Baffin Bay<br />
• Ice studies and environmental<br />
assessments to be carried out<br />
including establishment of a shorebased<br />
environmental field laboratory<br />
• Drilling activities expected to start in<br />
3 years at the earliest<br />
• Office in Nuuk.
Developing deepwater<br />
capabilities in US GoM<br />
• Entered in 2006<br />
• Exploration agreement with 3<br />
deepwater operators: Chevron,<br />
ExxonMobil and Hess<br />
• Will participate in 10 exploration<br />
wells as non-operator in 2011<br />
• Deepwater discovery (Buckskin) to<br />
be appraised<br />
• Acquired 25% interest in the Jack<br />
development project in 2010 with<br />
production start in 2014; expected<br />
9,000 boepd<br />
• In 2010, <strong>Maersk</strong> <strong>Oil</strong> acquired 62<br />
leases in the Central US GoM and<br />
participates in some 200 leases in<br />
the US Gulf in total.
Growth in<br />
Norway continues<br />
• Established in 2003<br />
• 19 licenses including 6 operated<br />
• 3 discoveries to be developed:<br />
Flyndre, Avaldsnes and Zidane<br />
• First operated well in 2012 (T-rex)<br />
• Partners: Bridge, Dana, Edison,<br />
Faroe, Lundin, Noreco, Petoro, RWE,<br />
Statoil, VNG and Wintershall<br />
• 6 wells planned for drilling in 2012<br />
including the second operated Albert<br />
well.
Thank you
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