UBS Australasian Conference November 2015 Oil Search Limited ASX: - PDF document

UBS Australasian Conference November 2015 Oil Search Limited ASX: OSH | POMSoX: OSH US | ADR: OISHY ARBN 055 079 868 www.oilsearch.com Overview » Strong production from quality assets: – PNG LNG Project capacity increased from 6.9 MTPA to 7.3 MTPA – Mature oil assets performing well » Solid balance sheet with liquidity of ~US$1.6bn » PNG LNG has created strong platform for further growth » World class LNG growth projects advancing: – PNG LNG production optimisation/debottlenecking plus potential T3 – Papua LNG Project resource maturation underway – Major near-field exploration programme planned for 2016+ » Business optimisation and performance innovation programmes initiated: – Recalibrated cost base, with capital spend focused on attractive LNG growth opportunities – Developing continuous improvement culture » WPL one-for-four takeover proposal rejected by OSH Board: – Grossly undervalued existing assets and growth potential UBS Australasian Conference - November 2015 2

Core strategies have delivered steady long-term share price appreciation Manage 2010 Strategic PRL 15 PNG LNG 2014 Strategic transition to PNG Review acquisition production Review 12 160 LNG Project commences 140 PNG LNG 10 FID 120 2007 Strategic Brent price (US$/bbl) Review 8 Share Price (A$) 100 6 80 60 4 10 year TSR to 30 Sep 2015 1 40 OSH +116% Nameplate operating capacity 2 Median ASX200 Energy -17% reached at PNG 20 LNG plant Median ASX200 +34% 0 0 OSH Brent oil price Source: Orient Capital UBS Australasian Conference - November 2015 3 Oil Search licence interests, PNG Juha PNG LNG Project Juha North P’nyang PPL260 Gas Fields Papua New Guinea Hides PNG LNG Project Hides Kutubu Facilities Angore Port Moresby Non PNG LNG Moran Gas/Oil Fields Agogo Proposed Juha Facility Gobe Main OSH Operated Hides Gas OSH Interest Kutubu Conditioning Plant Oil Pipeline & Komo Airfield Oil Facility Oil Field Kimu Gas Pipeline Gas Facility SE Gobe Gas Field Elk/Antelope Barikewa Condensate Pipeline Uramu Hagana Flinders LNG Plant UBS Australasian Conference - November 2015 4

PNG LNG Project – producing consistently above nameplate capacity » At end 3Q 2015, >125 cargoes delivered and nearly 9 million tonnes produced since start-up in 2014 » Annualised production in 3Q15 of ~7.4 MTPA (1H15 of ~7.1 MTPA), compared to nameplate capacity of 6.9 MTPA: – ExxonMobil announced increase in gross capacity from 6.9 MTPA to 7.3 MTPA , reflecting “focus on maximising the value of installed capacity and improving profitability”* – Increase in capacity supported by strong upstream deliverability (including OSH-operated gas supply) and LNG plant reliability » Project has established excellent reputation as a reliable gas supplier » Full contractual volumes being taken, with contract ramp-up underway to plateau of 6.6 MTPA in 2Q16 » Good demand for spot volumes, >80% of spot cargoes have been sold to contract customers » Current focus on production optimisation / debottlenecking: – Already delivering substantial incremental value, with further upside potential » Final components of foundation development (Angore drilling, tie-in of Hides F1) expected to be completed in 2015 * ExxonMobil 3Q 2015 earnings conference call UBS Australasian Conference - November 2015 5 2015 Production Outlook » 2015 production expected to be at upper Net Production (mmboe) end of 27 – 29 mmboe guidance range: 30 27 - 29 PNG LNG (T1 + T2) – 6.3 – 6.9 mmboe from operated oil fields and Hides GTE Hides GTE* 25 SE Mananda – 21 – 22 mmboe from PNG LNG Project Gobe 19.27 » 2H15 focus items: 20 Moran Kutubu – Ongoing oil production optimisation initiatives, 21 - 22 with focus on process safety, reliability and well 15 integrity – Continued delivery of Kutubu, Gobe Main and 10 SE Gobe (third-party) gas to PNG LNG Project, 6.69 6.74 6.38 operation of liquids export system via Kumul 5 Marine Terminal 6.3 – 6.9 – Support operator in maximising PNG LNG production opportunities through optimisation / 0 2011 2012 2013 2014 2015F debottlenecking 1 LNG sales products at outlet of plant, post fuel, flare and shrinkage 2 Oil forecast assumes successful development drilling in 2015 * Includes SE Gobe gas sales 3 Gas:oil conversion rate used in 2014 & 2015: 5,100 scf = 1 barrel of oil equivalent (prior years 6,000 scf/boe) UBS Australasian Conference - November 2015 6

Commercialising PNG’s undeveloped gas » PNG LNG Project has delivered strong platform for OSH Operated growth: OSH Interest Oil Pipeline » Major infrastructure Oil Field Gas Pipeline » Government and landowner support Gas Field P’nyang Hides » Tier 1 LNG customers Angore Moran » Financier confidence Agogo » Kutubu PNG can deliver at least two more LNG trains, Juha PNG LNG FIELDS NW HUB underpinned by existing undeveloped gas resources in Mananda Gobe Main SE Mananda NW Highlands and Gulf areas, and third train with GULF HUB modest drilling success SE Gobe Kimu Elk-Antelope » Barikewa Unprecedented opportunity to participate in PNG LNG expansion and Papuan LNG development: Uramu - Both world-class projects » Major appraisal and exploration programme underway, Gulf Hagana multiple opportunities to provide gas for expansion, of Flinders Papua additional trains and industrial development PNG LNG facility » Delivery of near-term additional trains is common objective for industry, communities and Government UBS Australasian Conference - November 2015 7 NW Hub: PNG LNG expansion, potential third train and domestic power » MoU signed in January 2015 by ExxonMobil (as operator of PNG LNG and PRL 3) and PNG P’nyang Government sets schedule to develop P’nyang gas field, to underpin: – PNG LNG Project expansion (high-value production optimisation/debottlenecking and potential third LNG train – Muruk FID targeting end 2017) – Delivery of domestic power to PNG » Delivery of up to 25MW of interruptible electricity Strickland from PNG LNG plant to PNG Power in Port Moresby Juha commenced in July: Hides Angore – Satisfied key commitment of MoU » Landowner development forum planning progressing PRL 3 WI % Papua New Guinea » PNG LNG expansion identified by ExxonMobil as ExxonMobil affiliates Hides 49.0 Kutubu (operator Esso PNG P’nyang Ltd) “very well positioned to compete” globally* Port Moresby Oil Search 38.5 – Supported by successful delivery and performance of JX Nippon 12.5 foundation Project, competitive cost structure, stable and transparent fiscal terms * ExxonMobil 2Q 2015 earnings conference call UBS Australasian Conference - November 2015 8

Up to two P’nyang wells planned to further constrain 1C and 2C resource APPL 507 P’nyang 1X P’nyang 2X P’nyang South 2 PPL 269 PRL 3 P’nyang 1X P’nyang 2X P’nyang South 1 P’nyang South 2 PPL 464 PPL 395 0 4Km » Preparatory work underway for P’nyang South 2 well: – Location in SE of structure agreed by PRL 3 JV, to be drilled 2Q/3Q 2016 » Potential second well » Assuming success, OSH expects material increase in current 1C and 2C resources » Once PDL awarded, P’nyang to be integrated into PNG LNG Project UBS Australasian Conference - November 2015 9 Muruk 1 well to target multi-tcf exploration prospect » NE Muruk 1 – PPL 402 (OSH 50%). Operated by SW Muruk OSH in co-venture with ExxonMobil Darai Formation » Potential multi-tcf structure on-trend with Hides, located north-east of Juha and Juha North » Potential new source of gas for PNG LNG expansion, if successful 0 2 Km » Expected to spud in 1Q16 » Part of coordinated 2016 Highlands drilling P’nyang campaign to source gas for PNG LNG expansion Muruk PPL 402 WI % Oil Search 50.0 Juha Esso PNG Wren Ltd Hides Angore 50.0 (ExxonMobil affiliate) UBS Australasian Conference - November 2015 10