David Mendelson - Total E&P Australia - Changing dynamics in the region and what it means for the Australian natural gas industry

TOTAL IN AUSTRALIA AND REGIONAL

GAS TRENDS David Mendelson

Managing Director, Total E&P Australia

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2 SEAAOC, August 20, 2014

TOTAL S.A. – A MAJOR INTERNATIONAL OIL & GAS COMPANY

3 SEAAOC, August 20, 2014

● 5th largest international oil and gas

company

● ~100,000 employees

● Operating in more than 130 countries

● Produced 2.30Mboe/d in 2013, target of

3Mboe/d capacity by 2017

● US$28B of investments in 2013, the

majority of which was in exploration and

production

● Frontier exploration program of $2.8bn

GROWING LNG AND DEEP OFFSHORE CAPACITY

SEAAOC, August 20, 2014

~20% of production, >25% of

Upstream results in 2013

Expanding Total’s LNG capacity* Mt

2007

20

10

Yamal

Qatargas 2

Yemen LNG

Angola LNG

GLNG

Ichthys

2017

Train 1

Trains

2&3

Under development in 2014

Including net supply to Bontang. Yamal trains 2&3 start up post-2017. *

Deep offshore production Mboe/d, Total’s share

2007 2017

Egina Moho Nord Laggan CLOV

Pazflor Akpo Moho

Girassol Dalia…

Under development in 2014

0.5

0.2

Kaombo

~10% of production, >25% of

Upstream results in 2013

8 FPSOs operated in 2017,

first among Majors

AUSTRALIA: A STRONG FOCUS FOR TOTAL

SEAAOC, August 20, 2014 5

Darwin

Perth

Gladstone

Melbourne

Total Exploration

& Production

Australia HQ

Ichthys LNG

(30% Total)

GLNG

(27.5% Total)

Offshore Exploration

(6 permits, 2 operated

by Total)

Onshore

exploration

(4 permits)

HQ for Total

Chemicals &

Lubricants; Bostik;

Atotech; and

SunPower (66% Total)

Offshore Exploration

(2 permits, operated by

Total)

Significant resource potential and proximity to the growing Asian

natural gas market

Activities aligned with Total’s growth strategy

A NEW DISTRIBUTION IN HYDROCARBON RESOURCES

North America

Europe

Middle East

FSU

Asia

Africa

South America

Tight oil (including NGL from shale gas)

Extra heavy oil

Conventional oil

CSG Conventional gas (including tight gas)

Shale gas

Oil & gas reserves and unrisked resources (including unconventional)

6

Source: TOTAL

A more balanced geographical distribution

SEAAOC, August 20, 2014

A STRONG GROWTH IN GLOBAL GAS DEMAND

0

1000

2000

3000

4000

5000

Shale gas

+2%

CAGR

8% 17%

2013 2030

Decline New supply

Demand

Gas supply-demand Gm3

Gas will emerge as the second biggest energy source

Source: TOTAL

7 SEAAOC, August 20, 2014

Pipe Imports

GAS MARKETS BY REGION

Regional Production LNG Exports (US+Canada) LNG Imports Domestic Demand

8

North America Bcm/y

Europe Bcm/y

Asia Bcm/y

0

400

800

2012 2020 2030

0

400

800

1,200

2012 2020 20300

400

800

1,200

2012 2020 2030

CAGR12/30

1.1% 4.5%

CAGR12/30

1.8%

CAGR12/30

Source: TOTAL

Growing Asian Gas / LNG Demand

SEAAOC, August 20, 2014

0

100

200

300

400

500

600

2000 2010 2020 2030

LNG DEMAND INCREASING AT 5% PER YEAR

9

Potential projects

Estimated demand

Existing supply

Sanctioned projects

LNG demand by geographical area Mt/y

Others

Other Asia

Europe

Japan, South

Korea, Taiwan

Bunkers

LNG supply Mt/y

Source: TOTAL

Potential projects sensitive to long-term price

SEAAOC, August 20, 2014

TOTAL - A GLOBAL LNG PLAYER

● 10

Bontang Yemen LNG Qatargas 2 Qatargas 1 Adgas Qalhat LNG Oman LNG GLNG

Ichthys

Snohvit

Angola LNG

NLNG T1-T6

Liquefaction projects under FEED or under study

Existing liquefaction projects

Liquefaction projects under construction

Existing regasification terminals

Under construction regasification terminals

South Hook

Dunkerque LNG

Fos Cavaou

Hazira Sabine Pass

Altamira

Yamal

0

5

10

15

20

25

30

35

2013 2020

Downstream

Intragroup

Upstream

Total LNG portfolio (Mt)

SEAAOC, August 20, 2014

OPPORTUNITIES & CHALLENGES FOR AUSTRALIA

11 SEAAOC, August 20, 2014

● Gas demand is growing, particularly in Asia

● LNG competition will increase in the next

10 years as multiple projects come on-

stream – cost will be a determining factor

● A key unknown is what role

unconventionals will play – time will tell

how technically and economically

successful we are

● Given increasing regional demand for gas

over the longer term, Australia is well

positioned to exploit these opportunities - if

the above challenges can be overcome

THANK YOU