Transcript Glencore - Developing Markets Associates Limited

UK – Cameroon
Trade & Investment
Forum
May 7th 2014
Glencore
At a glance
• leading integrated producer and marketer of
commodities, with worldwide activities in the
production, refinement, processing, third party
procurement, storage and transport of those products
• more than 90 offices in over 50 countries; operations
comprise over 150 mining and metallurgical sites, oil
production assets, farms and agricultural facilities. We
employ approximately 200,000 people, including
contractors
• listed on London, Hong Kong and Johannesburg
Stock Exchanges
• current rating BBB (stable) / Baa2 (stable)
Key financials
Metals and
Minerals
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• Coal
• Oil
Agricultural
Products
Grains
Oils/Oilseeds
Sugar
Cotton
Key competitive strengths
• scale and commodity diversity
• unique business model, fully-integrated along the supply
(US$ m)
236,236 239,673
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•
13,086 13,071
8,591 7,434
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•
Revenue
Copper
Zinc/Lead
Aluminium
Ferroalloys
Nickel
Iron Ore
Energy Products
Adjusted EBITDA
2012
2013
Adjusted EBIT
•
chain to capture value in an evolving competitive
landscape
ability to respond to changing industry dynamics
core competence in commodity marketing, logistics, risk
management and financing
leading industrial asset portfolio of diversified operations
with strong growth prospects
diversified position across multiple commodities,
suppliers and customers
world-class management team, entrepreneurial culture
and track record of value creation
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Where we operate
More than 90 offices in over 50 countries, over 150 industrial sites and facilities
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A high value, liquids-based strategy…with trading synergies
Attractive and
balanced portfolio
of exploration,
development and
production assets
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West and Central
African focus
primarily
targeting oil plays
Strong in-house
technical and
financial
capabilities
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4
Significant production
growth from EG (Alen)
and Chad in 2013 to
add to existing Aseng
production
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Demonstrated ability
to source attractive
opportunities and
prove up
resources
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A growing Exploration and Production Portfolio
E&P Portfolio Location
Asset Participation
Equatorial
Guinea
Participating
Interest
Cost Bearing
Interest
Block I
23.75%
25.00%
Block O
25.00%
28.57%
Block X
37.50%
44.10%
Block V *
80.00%
100.00%
Block EG 05 *
60.00%
75.00%
Participating
Interest
Cost Bearing
Interest
Matanda *
90.00%
90.00%
Bolongo *
100.00%
100.00%
Tilapia
33.33%
33.33%
Cameroon
Participating
Interest
Cost Bearing
Interest
33.33%
33.33%
Mangara Field
35.00%
41.17%
Badila Field
35.00%
41.17%
DOH
33.33%
33.33%
Doseo/Borogop
33.33%
33.33%
Morocco
Participating
Interest
Cost Bearing
Interest
Boujdour
Offshore*
38.25%
51.00%
Foum Ognit
Offshore
18.75%
25%
Chad
DOB/DOI
* Glencore operated
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A track record of success
• A strategy started in the early 2000’s, now translating into reserves and production
2004
2005
2006
2007
2008
2009
2010
Diega Discovery
EG Block I Farm-In
2011
Carla Discovery
2012
2013
2014
2015
2016
Oak Discovery
EG05
PSC Matanda Drilling
Ratified
Cameroon Bolongo
PSC Signed
Exploration
EG Block O
PSC Signed
Alen
Discovery
Aseng
Discovery
EG Block V
Cameroon
Morocco
Farm-in
Tilapia Farm-in
Farm-in
Krim Exploration Well
EG Block X
Chad
PSC Signed
Farm-in
Cameroon
Matanda PSC Signed
Oak Appraisal
Aseng First Oil
Carla Appraisal
Development and Production
Drilling History:
• 52 wells drilled since 2004
• 17 exploration wells
• 21 appraisal wells
• and 14 development wells
• 5 dry holes
Aseng POD Approval
Alen POD Approval
Badila First Oil
Alen First Oil
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Growing upstream production
Gross production 2011 - 2014
120
110
100
90
Prodcution (KBPD)
80
70
Badila
60
50
Alen
Aseng
40
30
20
10
0
Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14
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Cameroon – Matanda
Matanda (Glencore 90% Operator, AFEX 10%)
• NM-3x well confirms
significant wet gas play in
Cretaceous
• Well results currently being
evaluated
• Further drilling
opportunities in the license
with total potential of >1tcf
• Gas monetisation feasibility
study on going
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Cameroon – Bolongo
Bolongo (Glencore 100% & Operator)
• Oak oil field discovered
in 2012
• Resource potential in the
development area of
30 – 100mmbbls oil
• Current appraisal
drilling programme
nearing completion
• Development feasibility
study set to commence
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Conclusions
• Cameroon is a core area for Glencore upstream investment
• Exploration investment to date in the Bolongo and Matanda licenses
exceeds US$460mm
• Appraisal results from the Oak discovery may lead to a development
requiring significant investment.
• Future potential for significant gas development exists in the Matanda
license
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QUESTIONS?
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