FIT FOR $50

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THE STORY SO FAR

• Supply demand imbalance
• Market reactions
• LNG impacts
• Shape of recovery
• Survive, then thrive

OIL MARKETS SINCE 2011

Untitled Slide

• Cheap vs expensive oil
• Marginal supplies growth
• Cuts = share loss
• Shale potential
• Rising alternatives
• Stranded asset risk

% SHARE PRICE SHIFT 07/14 - 01/15

CUTBACKS BY THE NUMBERS

LNG HEADWINDS

• Oil-linked pricing
• Spot market collapse
• Similar cutbacks
• Ratings downgrades
• Investment alerts
• Takeover speculation

LNG OFFSETS

• Long term contracts
• Floor pricing
• Volume guarantees
• Assets to sell
• Competition eroding
• Expansion potential

LNG SURVIVAL STRATEGIES

• Price roll-backs
• Scale purchasing
• Supplier reviews
• Asset sales
• Capital reconfiguration
• Layoffs, wage freeze
• Outsourcing

RECOVERY?

GET FIT FOR $50

• Protect your revenues
• Reduce costs by 30%
• Free up underused assets
• Manage expectations
• Upgrade selectively

LOCAL CASE STUDY

THANK YOU