Seoul FLNG Conference, 25 October 2011
Collin F Visaggio Chief Financial Officer InterOil Corporation
Philip Eystein Fjeld Chief Executive Officer FLEX LNG
Cautionary & Forward-Looking Statements This presentation includes “forward-looking statements” as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements. In particular, this presentation contains forward-looking statements pertaining to business plans, strategies and priorities; estimated characteristics of the Antelope and Elk Field, the Bwata field and other exploration prospects; exploration and development plans, including the proposed seismic and airborne geophysical programs and drilling program; operating goals, including completing FEED work, reach FID for the proposed CSP and LNG projects, securing LNG off-take arrangements; completing the sale of interest in the Elk and Antelope resources with LNG off-take, continuing the development of the Elk and Antelope fields, resuming drilling outside PRL 15; negotiation and finalization of definitive agreements in respect of, and the development and construction of, the proposed LNG plant with Energy World Corporation, the proposed CSP facility with Mitsui Group, the proposed LNG Hub Terminal and power plant in the Philippines and related arrangements with Energy World Corporation, and proposed floating LNG vessel with FLEX LNG and Samsung; ownership interests of InterOil, Pacific LNG and LNGL and each of Energy World Corporation, Mitsui Group, FLEX LNG and Samsung in the proposed LNG and CSP projects and the Elk and Antelope fields, as applicable; the cost structure of LNGL; farm-in process on the Elk and Antelope fields; capacity of the proposed LNG and CSP projects, timing of developments and commencement of commercial operations of the proposed LNG and CSP projects; other growth opportunities; future demand for and capacity of LNG; and the costs, cash flow projections and implied valuations, economics and benefits associated with the proposed LNG and CSP projects. These statements are based on the terms of the agreements with Energy World Corporation, the Mitsui Group, Pacific LNG, LNGL, FLEX LNG and Samsung and also certain assumptions made by InterOil based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. No assurances can be given however, that any of these events will occur. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of InterOil, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the inherent uncertainty of oil and gas exploration activities; the price of gas and LNG; the availability and cost of drilling rigs, oilfield equipment, and other oilfield exploration services; the ability to finance the development of the LNG facilities and CSP facilities and related projects; the ability to timely construct and commission the LNG facilities and CSP facility; turmoil in the financial and capital markets; political, legal and economic risks in Papua New Guinea; landowner claims; weather conditions and unforeseen operating hazards; the impact of legislation regulating emissions of greenhouse gases; and the risk factors discussed in InterOil's filings with the Securities and Exchange Commission and SEDAR, including but not limited to those in InterOil’s Annual Information Form in the year ended December 31, 2010 and the MD&A for the period ended December 31, 2010, available at www.sec.com and www.sedar.com. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. The forward-looking statements contained in this presentation are made as of the date hereof and InterOil does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable securities laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement. We currently have no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. InterOil includes in this presentation information that the SEC's guidelines strictly prohibit InterOil from including in filings with the SEC. Investors are urged to consider closely the disclosure in InterOil’s Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.com and Annual Information Form in the year ended December 31, 2010 on SEDAR at www.sedar.ca
Oil and Gas Disclosure All calculations converting natural gas to barrels of oil equivalent (BOE) have been made using a ratio of six mscf of natural gas to one barrel of barrel of oil equivalent. BOE’s may be misleading, particularly if used in isolation. A BOE conversion ratio of six mscf of natural gas to one barrel of crude oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Resources in this presentation are based on the report prepared by GJL Petroleum Consultants dated March 7, 2010 with an effective date of December 31, 2010 setting forth certain information regarding contingent resources of InterOil’s interests in the Elk and Antelope fields in PNG. Contingent resources are those quantities of natural gas and condensate estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The economic status of the resources is undetermined and there is no certainty that it will be commercially viable to produce any portion of the resources. The following contingencies must be met before the resources can be classified as reserves: (i) sanctioning of the facilities required to process and transport marketable natural gas to market, (ii) confirmation of a market for the marketable natural gas and condensate, and (iii) determination of economic viability. Although a final project has not yet been sanctioned, pre-FEED studies are ongoing for the LNG project and FEED studies conducted for the CSP project as options for monetization of the gas and condensate. The “low” estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. With the probabilistic methods used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. The “best” estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. With the probabilistic methods used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate. The “high” estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. With the probabilistic methods used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
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InterOil’s Vision Papua New Guinea Poised to Join the Ranks of Asian LNG Suppliers
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InterOil A Trusted PNG Partner That Delivers
InterOil is a domestic company (PNG Only) looking for long-term sustainable economic development for the nation, InterOil, and the citizens of PNG.
InterOil considers itself a partner with the country, its people, and government.
InterOil acts in good faith, using best efforts for all stakeholders.
InterOil has a proven and fair track record.
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InterOil Vertically Located and Positioned for Growth
Exploration Portfolio 3.9 million acres
Midstream Portfolio - Refinery 36, 500 bpd capacity Condensate Stripping Project Generates Early Cash Flow and Revenue to All Stakeholders Midstream LNG Project
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Downstream Domestic Distribution
The World Woke Up: A World Record Rate of Over 700 MMCF/D
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The Resource: 2010 Third Party Resource Estimate of Elk and Antelope Underpins a large LNG development with a 5% increase over 2009 Gross Contingent Resource Estimate for Gas and Condensate as of December 31, 2010 As at December 31, 2010
Case Low (C1)
Best (C2)
High (C3)
Initial Recoverable Sales Gas(Tcf)
6.47
8.59
10.44
Initial Recoverable Condensate (MMBbls)
105.3
128.9
151.4
Initial Recoverable MMBOE
1,183.6
1,560.4
1,891.1
An evaluation of the potential resources of gas and condensate for the Elk/Antelope field has been completed by GLJ Petroleum Consultants Ltd., an independent qualified reserves evaluator, as of December 31, 2010 The estimates presented are in accordance with the definitions and guidelines in the COGE Handbook and Canadian NI 51-101 Gas in place increased almost 1TCF from 2009 to 2010
C1 enough to produce 8mtpa LNG, and C2 enough to produce 11 mtpa, for 15 years
InterOil Has a Proven Track Record in Papua New Guinea InterOil was formed in 1997 - Vision to create an integrated energy company Exploration licenses signed under incentive program - 2003
Elk-1 discovery of Elk fault block – 2006 Antelope-1 discovery of Antelope reef – 2008 Third-party certified contingent resources estimate Third-party certified contingent resources estimate Third-party certified contingent resources estimate Potential for 2.5 Billion BOE
– 2009 – over 3.8 Tcfe ~ 630 mmBOE* – 2010 – over 9.1 Tcfe ~ 1.52 BBOE* – 2011 – over 9.4 Tcfe ~ 1.56 BBOE*
Refinery commissioned in 2004, Mechanical completion - 2006
Completed refinery project agreement Secured land rights - harbor rights – OPIC Financing
Distribution asset acquisitions to vertically integrate with refinery - 2003/2005
Purchased distribution assets from BP and Shell in PNG
InterOil Gulf LNG Project – Current Activity
*
Start-up configuration of: Condensate stripping plants 3 mtpa land-based, modular LNG plant 2 mtpa fixed floating LNG plant Gas and liquids pipeline to LNG plant and Jetty on the coast Ramp up LNG to 8 mtpa 8
Papua New Guinea is Now Poised to Emerge as a Global LNG Supplier Two LNG Project Agreements approved by the PNG Government
InterOil led Gulf LNG Project 5 mtpa start-up capacity Expansion to 10.8 mtpa Exxon led PNG LNG Project 6.6 mtpa Expansion to ~ 10 mtpa
Largest carbonate reef trend in Asia • • •
World-class exploration potential Active Highlands area Strong off-shore Gulf area
A number of new Potential LNG players 9
World Class Hydrocarbon Province – InterOil’s 3.9 Million Acres
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Attractive Economics Relative to Asia-Pacific LNG Projects Natural Gas Supply - InterOil High productivity reservoir >300 Mmcf/d Antelope flow tests Tests indicate 5-6% CO2 InterOil field tested over 20 Bbls/MMcf of condensate Minimal pre-LNG processing requirements
Favorable Geography Protected geographic region Onshore, near coast (115 Km) Close to largest global LNG market
Proposed Infrastructure
CSP EPC bids in, Mitsui to optimise financing Mid-size LNG plant funded by EWC Fixed-floating FLNG plant funded by Samsung and FLEX LNG InterOil LNG plant and infrastructure costs well below competitive proposals
Fiscal Policy 30% flat tax rate Major project incentives and exemptions available from the State Government resource project protection
Experienced LNG Management Team Marathon EGLNG Team Members now at InterOil and affiliates EG LNG project completed ahead of schedule11 and under budget
InterOil Gulf LNG Development Map Development Map Upstream Gas Project Petroleum Development Licence Elk and Antelope Fields Elk Antelope fields, - 8.59 tcf Recoverable Sales Gas, and 129 mmbbls Condensate (2C resource) 7 to 12 wells producing up to 200 -400mmscfpd each (initial capacity) 1 water reinjection well and 1 surveillance well Compression facilities Condensate Stripping Facilities 12-14” Infield gas gathering pipelines Fields to CSP wet gas trunk line Condensate stripping plants - up to 1.8 BCF capacity Produced water re-injection pipeline from CSP to fields injection well
PDL Elk Antelope
Pipeline Licence Condensate Condensate Pipeline ~120km buried 12 3/4” condensate pipeline from CSP to condensate storage tanks at Gulf 100,000bbl condensate storage tank at the Gulf with plans to add additional tanks when needed Condensate recovery pipeline from Liquefaction plants to condensate storage tanks Pipeline connecting condensate storage tanks to ship loading facilities Condensate ship loading facilities
Midstream LNG Project Pipeline License Gas Dry Gas Pipeline ~120km buried 32” dry gas pipeline from CSP to liquefaction plants at Gulf and a 12-20” pipeline to floating LNG at jetty export terminal facilities Petroleum Processing Facilities Licences Liquefaction Facilities Liquefaction plants land based and fixed floating of 11 mtpa capacity LNG storage tanks 180,000 m3 Pipeline connecting the LNG storage tanks to the export terminal loading facilities LNG loading facilities Return pipeline from loading facilities to liquefaction plants and LNG storage tanks (6000m x 0.5m) Export Terminal and Common Facilities ~6km breakwater, causeway, moorings and jetty Offices, warehouses and accommodation
PPFL Land PPFL Fixed Floating
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Lessons from EGLNG and Others: US$1.2 Billion in Pre-FID investments to maintain schedule 2014 LNG Start-Up
Ordering up to $100 million of:
Condensate Line Pipe
Processed gas Line Pipe
Critical long lead infrastructure
Purchased over $20 million in Construction Equipment:
Dump Trucks
Bulldozers
Excavators 13
InterOil’s Gulf LNG Project Update and Future Milestones InterOil is moving ahead to reach FID LNG facilities increased from 2mtpa to 5mtpa with Samsung & FLEX LNG fixed floating proposal, targeting 8mtpa CSP facilities re-engineered for increased production volumes are nearing completion & ready for bid Pipelines for natural gas and condensate have been designed to handle the capacities required for our target LNG volumes Site specific engineering for land based modular LNG with Energy World is almost complete
Continuing LNG pre-investment to lower bidder risks and secure lower project costs LNG off-take HOA was signed with Noble Group for 1 mtpa for 10 years, in addition to the 300,000 tonnes per annum dedicated to the Philippines Power Project
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InterOil’s #1 Priority is Achieving CSP and LNG Project FIDs Making good progress on early development requirements Increasing local employment, InterOil is already one of the largest employers in PNG
The LNG Plants: EWC LNG & FLEX LNG /Samsung Project Partnerships On February 2, 2011, InterOil and PACLNG and Energy World Corporation completed final documentation for a 3 mtpa plant. The initial 3 mtpa modular LNG plant is expected to process an estimated 2.25 Tcf of natural gas over 15 years. On April 11, 2011, InterOil and Pacific LNG Operations executed agreements with FLEX LNG LTD and Samsung Heavy Industries for a floating liquefaction project in Papua New Guinea with targeted start of LNG production in 2014. The FLNG vessel will be moored alongside the jetty and have a production nameplate capacity of up to 1.8 - 2 million tons of LNG per annum. Samsung provides the construction financing and all performance guarantees for the FLNG vessel
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EWC and FLEX LNG will receive, less agreed deductions and premiums, 14.5% of the proceeds from the sale of LNG by the upstream partners from the FLNG vessel for an initial 15-year period.
InterOil Engages Advisors on Sale of Interest in Resource and Exploration InterOil has retained Morgan Stanley, Macquarie and UBS as joint financial advisors to assist InterOil with its evaluation of proposals from potential strategic partners in the liquefied natural gas project Obtain an internationally recognized LNG operating partner Accelerate the LNG capacity to 7.6 mtpa or more Partial sale of an interest in the Elk and Antelope fields Possible LNG off-take Possible participation in InterOil’s exploration tenements in Papua New Guinea
The timing is right for engaging in partnering process Strengthening Asian LNG market, >$17/mcf spot prices Company has received proposals from internationally recognized LNG operators Increased interest in exploration and investment in PNG Third annual Elk and Antelope resourse estimate supports LNG project Substantial progress in LNG project engineering and design Opportunity to book proven reserves on declaration of FID Spudding of Triceratops 2 well this quarter. 17
In Summary
Papua New Guinea was an under-discovered frontier, with world class assets strategically located on the doorstep of LNG Asia: Ignored and bushed aside by most majors
The world awoke to PNG’s LNG Value as Spot Prices near US$19/mmbtu – Quality gas for the Asian LNG Buyers, with diversification from Qatar and Australia – Vast exploration and resources to ensure reserves for all stakeholders – Modular LNG can build 20 to 30 mtpa of LNG capacity in PNG – PNG could be 2nd largest Asian supplier of LNG in 10 years, behind Australia
InterOil has a significant F&D advantage, and early cashflow with Modular and FLNG development −
15 years in PNG with the best track record in PNG Exploration
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The only PNG refinery operator providing operator advantages for LNG
Bottom line: PNG passed the turning point for LNG; and is now on the path to being a Major Supplier of clean energy – as a portfolio including FLNG with Korea
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InterOil: Working with all stakeholders and the future of Papua New Guinea
“An Energy Company With Innovated LNG Development and Loyalty to PNG” 19
Gulf LNG Project The World’s First FLNG Project
London, 30th July 2010
9th May 2011
FLEX LNG Ltd – Brief introduction Pure FLNG Provider
Firm orders
Strong SHI support
Strong shareholder base
Mature FLNG concept
Large adaptability
Delivery in 2014
FLEX LNG is a pure-play developer of floating liquefaction projects
Lump-sum, turnkey EPCIC for entire unit (hull and topsides)
Long-standing partnership with Samsung Heavy Industries
Strong shareholder base (”K”-Line and InterOil among the largest shareholders)
Offering an advanced and mature FLNG design
LNG Producer offers great adaptability for different applications
Gulf LNG project being developed together with InterOil Corp. and partners for an at-shore FLNG project in Papua New Guinea
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Gulf LNG Project – FLNG Scope and Interfaces Samsung Heavy Industries FLNG FEED for Gulf LNG Project FLNG vs Onshore Development Costs Summary
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Gulf LNG Project - FLEX LNG interfaces and battery limits
FLEX LNG Scope Includes the LNG FPSO + LNG offloading-arms. Excludes breakwater, FSU, LNGC
Battery limits: -Feed gas loading arms -LNG jettyhead manifold -Mooring lines & fender dolphins
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Main Particulars LNG FPSO Gulf LNG Project
Main particulars (preliminary) Length overall (approx) Breadth, moulded (approx) Depth to upper deck, moulded (approx) Full load draught (approx) LNG Storage Capacity (approx) Condensate Storage Capacity (approx) LNG Production Capacity (approx)
276 50.0 32 13 170 000 5 000 2 24
m m m m m3 m3 mtpa
Offshore Marine Infrastructure
The offshore marine infrastructure will be located 6-7 km from the shoreline in approximately 15 m water depth
The offshore marine infrastructure will consist of the following:
A breakwater A single LNG FPSO jetty berth consisting of a single jetty head, and an arrangement of mooring dolphins, fender dolphins and a HP feed gas transfer system A dual berth for the LNG offtake vessel and a Floating Storage Unit comprising of a dual jetty head and an arrangement of mooring dolphins, fender dolphins and LNG loading arms Tug berth
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LNG FPSO Mooring to Jetty - Top view and side view
The LNG FPSO mooring system will be designed according to offshore rules DNV-OS-E301 Position Mooring
The mooring system is to be designed for the site specific 100 year return wind, wave, current conditions (resulting wave and current conditions behind the breakwater)
The offshore design philosophy requires redundancy in the mooring lines and fenders at the 100 year return metocean conditions
Top View
Side View
The mooring arrangement will consist of between 18 to 20 mooring lines deployed from the LNG FPSO to mooring dolphins
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Ship to Jetty LNG and Gas Transfer
Four 16” marine loading arms will be installed on the LNG FPSO midships
Gas transfer from the jetty head to the LNGP will be performed by CNG gas loading arms
Two loading arms will be dedicated for LNG, one loading arm will be a hybrid arm (capable of either LNG or vapour return transfer) and one will be dedicated for vapour return
This method of CNG transfer is proven from a number of operating jetty moored FSRU/Gas Port projects ie Pecem, Guanabara Bay (Brazil), Bahai Blanca (Argentina), Teeside (UK), Mina Al-Ahmadi (Kuwait)
The total LNG transfer flowrate will be 10,000 m3/hr
A single CNG loading can provide a gas flowrate equivalent to the maximum LNG Production rate (310 mscfd) at 65 barg.
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Gulf LNG Project – FLNG Scope and Interfaces Samsung Heavy Industries FLNG FEED for Gulf LNG Project FLNG vs Onshore Development Costs Summary
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Benefits of Constructing in a Controlled Environment - SHI is arguably the best qualified yard to construct an LNG FPSO
The FLNG unit is constructed in a highly efficient shipyard, utilizing existing production facilities and infrastructire. This results in better control over factors such as:
Construction Schedule Quality Control HSE Performance CAPEX
-known workshop capacity / production rates -constructed in a clean, sheltered environment -mainly using the yards regular workforce -benefits from existing, highly efficient infrastructure
Samsung Marine
Samsung Offshore
FLEX LNG Producer scope
Hull and Marine systems
Topsides and Integration
Production Capacity
5,400,000 GT/yr
160,000 mt/yr
Products
Production (2009)
Crude Oil Tankers, Container Vessels, Cruiser & Ferries, Gas Carriers (LNG,LPG), FPSO, Drill ships, etc.
61 Vessels
Offshore Platforms, Drill ship, FPSO, FLNG Topsides, TLP, Semi Rig, Material Handling Equipment, Desalination Plant
12 Offshore Units Samsung Heavy Industries, Geoje - Korea 29
EPCIC Contract With Samsung Heavy Industries - SHI takes the single-point responsibility for the entire LNG FPSO Contract Particulars Contract Structure Single, lump-sum, turnkey EPCIC Hull and Topsides aligned under Umbrella contract Final lump-sum conversion after field-specific FEED Performance Guarantees and LDs Production capacity Fuel efficiency Plant reliability Defect rectification liability Optimised to Satisfy Lenders & LNG Offtaker Interests/Requirements Contract structure (i.e. single, lump-sum, turnkey) Risk allocation (Cost, Schedule, Performance, Integration) Alignment of interests Owner & Contractor
Project Benefits: Favourable Risk Profile and Risk Allocation Technology risk mitigation Minimise risk for cost overruns Minimise risk for delays
Minimise integration risks Favourable performance guarantees & LDs Engineering flexibility to adapt the design
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Gulf LNG Project – FLNG Scope and Interfaces Samsung Heavy Industries FLNG FEED for Gulf LNG Project FLNG vs Onshore Development Costs Summary
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Gulf LNG FEED Contract
FEED period and resources
Main objectives
Adapt the generic hull and topside design to match the field-specific requirements of the Gulf LNG project Provide a sound basis for lump sum based execution contracts (EPCIC contract and SBC) Prepare to start EPCIC works immediately following Final Investment Decision in December 2011
Hull FEED scope is executed by SHI shipbuilding division, Geoje, S. Korea
May 2011 – Nov 2011 Currently more than 150 engineers mobilised to complete FEED for Gulf LNG project
Subcontractor IHI undertaking SPB tank design in Japan
Topside FEED scope is subcontracted to WorleyParsons (WP) and is carried out at WP’s office in London
WP has teamed up with Kanfa Aragon, Costain Group, and NLI Engineering, which were all involved in the development of the generic design SHI is present at the WP office with a resident engineering team to control the FEED works
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Project Execution - Contractor structure FLEX LNG technical and commercial team manages SHI - Provide design basis and project specifications - Interface management towards InterOil (jetty, feed gas, etc.)
FLEX LNG
Lump sum turn key contract Overall project mgm. and interface mgm.
Samsung Heavy Industries
Offshore Division SHI’s specialised organisations & yard, Geoje, S. Korea
Topside EPC Topside & Hull Integration Topside Commissioning
SHI resident engineering team to manage subcontractor Subcontractor to be nominated Option: WorleyParsons
Engineering & Procurement Subcontrractor
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Shipbuilding Division Hull EPC Hull Commissioning Gas & Sea Trials
Gulf LNG Project – FLNG Scope and Interfaces Samsung Heavy Industries FLNG FEED for Gulf LNG Project FLNG vs Onshore Development Costs Summary
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The Benefits of the FLNG are Numerous Low cost, early LNG, construction risk mitigation, and flexibility
Maximize LNG production capacity within a standard LNG hull-size Minimize CAPEX Work closely with the yard to ensure constructability of design
Develop a generic concept with field-specific adaptability
Modularisation
Maximise use of proven technology and existing equipment ranges. Simplify the design and complexity
Select inherently safe and robust technologies. Design for safety
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Minimize project execution schedule
Minimize technology and operational risks
LNG Projects Are More Costly Than Ever to Develop - FLNG reduces CAPEX and has significant schedule advantages
Onshore LNG Development Costs Continue to Increase
CAPEX/ton of installed liquefaction capacity has during the last decade made a permanent shift from an average figure below 500 USD/ton to a typical range of range of 1500 – 3000 USD/ton
240
230
220
210
210
201 UCCI Index
200
The IHS CERA Upstream Capital Costs Index (UCCI) shows more than a doubling of costs in the oil and gas industry. However, due to the uniqueness often attributed to developing LNG projects, current LNG development costs exceed the average for the oil and gas industry
207
202
180 160 140 120 100 Nov May Nov May Nov May Nov May Nov May Nov 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010
Source: IHS Cambridge Energy Research Associates (IHS CERA)
2000 USD/ton liquefaction capacity
Traditional onshore liquefaction projects continue to overshoot on schedule and cost
PNG LNG (2014) Angola (late 2012)
1800 1600 1400 1200
GLNG (2014) Gorgon LNG (late 2014)
QCLNG (2014)
Pluto LNG (2011)
1000 800 600
FLEX LNG (2014)
400
ALNG (Trinidad 2003)
200 0 0
2
4
6
8
10
12
Annual LNG liquefaction capacity (mtpa)
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Source: FLEX LNG, Tri-Zen, Industry Reports
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Gulf LNG Project – FLNG Scope and Interfaces Samsung Heavy Industries FLNG FEED for Gulf LNG Project FLNG vs Onshore Development Costs Summary
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FLNG is Revolutionising the LNG Industry….. ….. and combined with the Gulf LNG Project offers an unique value proposition for PNG
LNG FPSOs offer compelling arguments.....
Lead time less than 50% of a traditional liquefaction project Unit CAPEX of less than 50% of cost of traditional onshore liquefaction capacity Strategic and commercial independence Increased revenue/taxation for host governments compared to traditional onshore developments Considerably reduced environmental impact compared to a traditional onshore development
.....and as the first FLNG units are deployed the industry will see the following changes:
LNG supply projects can be developed in 2-3 years LNG supply projects will appear in locations unimaginable today (i.e. liquefying pipeline gas supplied from existing grid) Onshore liquefaction projects will have to innovate and become more cost effective to remain competitive Traditional end-users of LNG will integrate upstream and take control over their own LNG supply destiny Companies with no previous affiliation to the LNG industry will become substantial LNG suppliers 38
Questions?
Collin F Visaggio Chief Financial Officer InterOil Corporation
Philip Eystein Fjeld Chief Executive Officer FLEX LNG 39
