US I nvestor Presentation March 2 0 1 0 1 DI SCLAI MER W hile - PowerPoint PPT Presentation

O I L S E A R C H L I M I T E D US I nvestor Presentation March 2 0 1 0 1

DI SCLAI MER W hile every effort is m ade to provide accurate and com plete inform ation, Oil Search Lim ited does not w arrant that the inform ation in this presentation is free from errors or om issions or is suitable for its intended use. Subject to any term s im plied by law w hich cannot be excluded, Oil Search Lim ited accepts no responsibility for any loss, dam age, cost or expense ( w hether direct or indirect) incurred by you as a result of any error, om ission or m isrepresentation in inform ation in this presentation. All inform ation in this presentation is subject to change w ithout notice. This presentation also contains forw ard-looking statem ents w hich are subject to particular risks associated w ith the oil and gas industry. Oil Search Lim ited believes there are reasonable grounds for the expectations on w hich the statem ents are based. How ever actual outcom es could differ m aterially due to a range of factors including oil and gas prices, dem and for oil, currency fluctuations, drilling results, field perform ance, the tim ing of w ell w ork-overs and field developm ent, reserves depletion, progress on gas com m ercialisation and fiscal and other governm ent issues and approvals. 2

Oil Search Profile  Established in Papua New Guinea ( PNG) in 1 9 2 9  Operates all of PNG’s producing oil and gas fields. Current gross production ~ 4 0 ,0 0 0 boepd, net share ~ 2 1 ,0 0 0 boepd  PNG Governm ent is largest shareholder w ith 1 5 % . I n early 2 0 0 9 , Govt issued exchangeable bond over shares to I PI C of Abu Dhabi  2 9 % interest in PNG LNG Project, w orld scale LNG project operated by ExxonMobil. Project in construction, first LNG sales expected 2 0 1 4  Significant further gas resources still to be com m ercialised plus exploration interests in PNG and Middle East/ North Africa  Market capitalisation ~ US$ 7 billion. Listed on ASX ( Share Code OSH) and POMSOX, plus ADR program m e ( Share Code OI SHY) 3

Oil Search Locations Tunis I raq Tunisia Dubai Sana’a Yem en Papua New Guinea Kutubu Ridge Cam p Port Moresby ( Head Office) Australia Brisbane Sydney 4

2 0 0 9 Perform ance Sum m ary  Highlight of 2 0 0 9 w as PNG LNG Project developm ent decision:  Less than tw o years from FEED to Sanction  Transform ational im pact on Oil Search and PNG  ExxonMobil quality operator  Foundation for m ajor LNG industry in PNG  Seven fold increase in proven and probable reserves, increasing from 6 7 m m boe to 5 6 7 m m boe, w ith significant further potential upside  NPAT of US$ 1 3 3 .7 m illion, US$ 9 9 .6 m excluding PNG Governm ent back-in and tax adjustm ents. Satisfactory result given com m odity environm ent, w ith average oil price dow n 3 5 %  Strong balance sheet w ith US$ 1 .3 billion cash at year end, total liquidity of US$ 1 .6 billion ( including line of credit) . Sufficient for both PNG LNG equity contribution plus funding of T3 / T4 gas exploration/ appraisal program m e 5

Outstanding Safety Perform ance Total Recordable I ncidents ( TRI s) of 1 .1 6 in 2 0 0 9 1 4 12.7 1 2 10.6 TRI / 1 ,0 0 0 ,0 0 0 Hours 10.7 9.8 Australian 1 0 Com panies ( APPEA) 9.4 9.3 8.5 9 .1 8 7.8 8.2 7.0 7.3 6.3 6.8 6.0 5.7 6 5.8 5.2 4.9 I nternational 4.7 4.0 Com panies 4 ( OGP) 3.1 3.9 2.9 3.6 2.7 2.1 2.04 2 Oil Search 1.7 2 .4 2 .3 1 1.16 2.05 0 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 6

Consistent TSR perform ance over 5 years Relative TSR perform ance for period ending 3 1 Decem ber, 2 0 0 9 4 0 OSH Ranking # 4 2 nd 1 st 3 0 % TSR per annum 3 rd 2 0 1 0 0 -5 1 Year 3 Year 5 Year ASX 1 0 0 I ndex Median Com pany OSH perform ance # Ranking based on ASX 100 composition at the beginning of the reference period. Source: I RESS 7

Future Value Grow th  Driven by :-  PNG LNG delivery  Project optim isation  Further LNG train developm ent  Reserve grow th and exploration success  Com prehensive program m es to deliver value through to PNG LNG first gas 8

PNG LNG Project 9

PNG LNG Project  W orld class LNG project under construction  Aligned joint venture  ExxonMobil Operator – excellent track record  Supportive Governm ent and com m unities  Provides infrastructure for future grow th  Transform ational for Oil Search and PNG 1 0

PNG LNG Project the road to sanction  2 0 0 8  Signed JOA, aligning JV partners in March  Signed Gas Agreem ent w ith Govt in May  Com m enced FEED in May  Com m enced m arketing discussions late 2 0 0 8  Developed financing plan  2 0 0 9  Subm itted EI S in January  Signed UBSA in May  Signed HOAs  Com m enced early w orks  EI S approved in October  Com pleted FEED, LNG plant capacity increased to 6 .6 MTPA 1 1

PNG LNG Project the road to sanction  Decem ber 2 0 0 9  Com pleted LBSAs  Signed 3 SPAs w ith TEPCO, Osaka Gas and Sinopec  Developm ent approval 8 Decem ber 2 0 0 9  EPC contracts aw arded 9 Decem ber 2 0 0 9  Financing docum ents signed 1 5 Decem ber 2 0 0 9 w ith ECAs, Com m ercial Banks and ExxonMobil for $ 1 4 billion – w orld’s largest project financing  Governm ent offered and Project accepted all developm ent licences  Governm ent paid past costs for equity back-in to new developm ent licences  March 2 0 1 0  Signed final SPA w ith CPC – now fully contracted  LNG vessel charter contracts signed w ith Mitsui OSK Lines  Minor legislation am endm ents  1 2 March – Financial Close 1 2

PNG LNG Project  Construction has com m enced ( roads, bridges, cam ps, site preparation and training facilities) . First LNG sales expected 2 0 1 4  First phase CAPEX, including FEED and early w orks estim ated at US$ 1 5 billion  Contracts:  LNG Plant: Chiyoda/ JGC  Offshore Pipeline Saipem  Hides Gas Plant CBI / Clough JV  Onshore Pipeline Spiecapag  I nfrastructure McConnell Dow ell/ CCC JV  Early W orks Clough/ Curtain JV  Associated Gas ( OSH only) Aker Solutions  Mix of fixed price/ variable price contracts  Resourcing by contractors underw ay now  Operator ExxonMobil has excellent record of delivering projects on tim e, on budget 1 3

Proposed PNG LNG Future Activities Continued early w orks. AG com plete. First Gas from Detailed design. Pipe laying Train 1 , Order long leads and ( Kutubu to Om ati) . then Train 2 place purchase orders. Offshore pipe lay Opening supply routes. com plete. Contractor m obilisation. Start Hides plant Com m ence Associated installation. Gas ( AG) construction. 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 Financial Ongoing procurem ent Pipe laying Kutubu and m obilisation. to Hides. Close Airfield construction. Ongoing drilling. Drilling m obilisation. Com plete Hides plant. Offshore pipeline Com m ission LNG plant construction start. w ith Kutubu gas. Onshore line clearing. Start LNG equipm ent installation. 1 4

PNG LNG Ranking ( Macquarie Equities)  I ndustry observers rank PNG LNG highly on returns 3 5 3 0 2 5 2 0 % 1 5 1 0 5 0 I chthys PNG LNG Poseidon APLNG Sunrise Gorgon Brow se QatarGas3 PNG LNG T3 Pluto T3 T1 / T2 GLNG T2 T1 / T2 W heatstone GLNG T1 Pluto T1 Source: Australian Energy Sector , Macquarie Equities Research, 1 2 January 2 0 1 0 1 5

Grow th Gas 1 6

PNG Gas Grow th  Key strategic priority for Oil Search is to grow gas business in PNG  LNG rem ains optim um com m ercialisation route for additional gas  PNG LNG w ill provide infrastructure and capacity to facilitate expansion and provide excellent cost structure:  Use of capacity in pipeline, jetty, tanks and services  Trained local w ork force  Governm ent is supportive of future gas grow th  Pace of gas grow th w ill be determ ined by:  Resource aggregation/ exploration  Joint Venture alignm ent  Market access 1 7

Existing Gas Discoveries P’nyang PPL2 60 Hides/ Juha/ Angore PRL0 3 PDL8 PDL9 PRL1 1 PDL1 APPL25 0 PDL6 6 °S PRL0 2 APPL24 9 PDL5 PDL7 PPL Kutubu/ Agogo/ SEM 2 33 PPL2 39 Elk/ Antelope Gobe/ SEG PPL2 19 PDL2 APRL14 PPL1 90 PDL4 PDL3 PPL2 40 PRL0 8 PRL0 9 Barikew a Uram u PRL1 0 Distribution of discovered 2 P reserve/ resource  Kum ul Significant discovered oil & gas reserves/ resources Term inal in Papuan Basin ( predom inantly in Fold Belt) PPL2 34  Basin is predom inantly gas prone PPL2 44  8 5 % of basin’s resources by boe are gas 9 °S Pandora A 5 0 km PRL0 1 1 4 2 °E 1 4 5 °E 1 8

PNG Gas Grow th Activities  Tw o largely independent core gas developm ent stream s:  PNG LNG dedicated fields  Material core reserves  Proven 3 0 0 m m boe ( OSH share) sold  Proven & probable 5 0 0 m m boe ( OSH share) – significant upside  Field developm ent optim isation  Future appraisal  Strong partner alignm ent  Other fields and exploration  Material resources still to be com m ercialised  Proven & probable 2 8 1 m m boe ( OSH share)  Future appraisal and exploration underw ay  Developing m aterial portfolio ex PNG LNG  Objective is to prove up sufficient proven contractible reserves to underw rite Trains 3 and 4 1 9