Oil Search Limited ARBN 055 079 868 ASX: OSH | POMSoX: OSH | US ADR: OISHY www.oilsearch.com Social Responsibility Investor Roundtable June 2015
Social Responsibility Investor Roundtable Agenda 2 Introduction Rick Lee 2014 Performance Gerea Aopi Maintaining a stable operating environment in PNG ? Managing social and political risks ? Role of key partnerships ? Sustainable…
Social responsibility embedded in our vision and strategies Social Responsibility Investor Roundtable - June 2015 3
? Safety: ? 20% reduction in TRIR to 1.97 (from 2.47 in 2013) ? 3 Tier 1, 4 Tier 2 process safety incidents (compared to 3 Tier 1, 9 Tier 2 in 2013) ? One fatality ? Environment: ? 1 spill >1bbl (compared to 8 in 2013) ? 8%…
2014 Performance cont?d Social Responsibility Investor Roundtable - June 2015 5 ? Sustainable development: ? US$69m paid for work contracted with Lancos in PNG ? US$8m invested in sustainable development programmes (including US$6m on…
2014 Strategic Review highlighted? Social Responsibility Investor Roundtable - June 2015 7 ? Majority of OSH value growth over next 5-7 years will come from assets in PNG ? Social responsibility, in particular strong government and…
Social Responsibility Investor Roundtable - June 2015 8 Transformational impact of PNG LNG ? expectations in PNG never been higher ? PNG LNG Project has transformational impact on PNG: ? GDP growth, long-term recurring revenue stream…
Working collaboratively with Government to lead development of PNG?s oil and gas sector ? Given constrained capacity of National and Provincial Governments, important that OSH plays a role to facilitate and augment Government to…
? Delivery of PNG LNG benefits commitments, as agreed in Umbrella Benefits Sharing Agreement, critical for project stability, to avoid social unrest and operational disruptions ? OSH assisting operator, ExxonMobil PNG, using its…
A political reality and social priority ? delivery of power solutions Social Responsibility Investor Roundtable - June 2015 ? Provision of competitively priced, reliable power is a political and social priority, particularly since…
Delivery of power solutions cont?d Social Responsibility Investor Roundtable - June 2015 ? Power initiatives: ? Power sale agreement between ExxonMobil and PNG Power for PNG LNG Project to supply up to 25MW electricity for local use…
Delivery of power solutions cont?d Social Responsibility Investor Roundtable - June 2015 ? Power initiatives: ? Power sale agreement between ExxonMobil and PNG Power for PNG LNG Project to supply up to 25MW electricity for local use…
Ramu Power Project ? potential reach Social Responsibility Investor Roundtable - June 2015 13
Biomass: large-scale impact with landowners Plantations are growing, intercropping trials ongoing, substantial local impact Social Responsibility Investor Roundtable - June 2015 14 Plantation after 12 months Intercropping Plantation…
Biomass: potential major benefits for Morobe Region, PPL and PNG Emphasis on social, economic, environmental and employment impact Social Responsibility Investor Roundtable - June 2015 15 Parameter Approx. benefit (first 30-40 MW)…
Facilitate delivery of key infrastructure projects ? OSH manages >US$200m of infrastructure projects on behalf of PNG Government, largely through Infrastructure Tax Credit Scheme (ITCS) ? Government-nominated projects funded by State…
Local content approach delivers important shared value outcomes ? OSH committed to employing and developing local people and businesses ? OSH employment strategy is to build capability through recruitment, development and retention…
Diversity & Inclusion Strategy focused on improving representation, development & retention ? OSH committed to promoting diversity at all levels, reflected in OSH Diversity Policy and Diversity and Inclusion Strategy, endorsed by…
Sustainable development is important pillar to generating social licence ? OSH sustainable development approach in PNG targeted towards: ? Local content ? Public health ? Food security and agriculture ? Women?s empowerment ?…
Sustainable development is important pillar to generating social licence cont?d ? OSH involved in range of agricultural sustainability initiatives that promote food security and empower women: ? Business for Millennium Development ?…
Oil Search Health Foundation (OSHF) ? Non-profit organisation that builds PNG Government?s capacity to deliver safe and effective healthcare in PNG ? Major provider of healthcare across operating areas in PNG ? Draws on…
OSHF cont?d ? OSH reviewing expansion of Foundation, with long term commitment seeking transformational change: ? New Foundation to be announced later in 2015 ? Projects under review include: ? Further health programmes addressing…
Strong environmental management ? All operations certified to ISO14001: ? Recent recertification audit of EMS ? Demonstrate our processes to identify and manage environmental risks and impacts are robust and effectively implemented…
Adapting to the new oil price environment ? Size and speed of oil price fall was unexpected ? Led to a reassessment of 2014 major Strategic Review recommendations. Key conclusions: ? OSH is in strong position to manage lower oil…
Business Optimisation Programme initiated ? Strategic, measured and reasoned approach across all aspects of OSH business to reduce operating costs, improve efficiency and build value, without compromising safety or long-term…
Addressing emerging areas of stakeholder interest Social Responsibility Investor Roundtable - June 2015 26 Area of interest OSH Response Stranded assets ? Working to analyse and develop clear position. However, portfolio does not…
Summary ? OSH?s present and future value tied to preserving a stable operating environment in PNG ? Social responsibility and sustainable development remain embedded in our core values ? OSH has a comprehensive series of social…
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