2018 ANNUAL MEETING When the pieces come together 11 May, 2018 Crowne Plaza Hotel, Port Moresby, PNG OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
PRESENTATION BY THE MANAGING DIRECTOR PETER BOTTEN OIL SEARCH 2018 ANNUAL MEETING 11 MAY 2018 PAGE 3
FOCUS ON SAFETY TOTAL RECORDABLE INCIDENT RATE 3 2018 INITIATIVE FOCUSED 2.6 ON BASICS: 2.5 Per million hours 2.0 2 1.9 1.9 PLAN, DO, CHECK worked 1.5 FOCUS ON LEADERSHIP 1 PROCESS SAFETY PERFORMANCE IMPROVED: 0…
SIGNIFICANT PROGRESS MADE ON VALUE-CREATING INITIATIVES LNG Expansion and development in PNG: Optimal, three train development concept agreed: One PNG LNG expansion train, two Papua LNG trains Bottom quartile costs, simplified…
OIL SEARCH AT FOREFRONT OF RELIEF EFFORTS OSH and OSH Foundation played critical First Responder role: Ideally located and appropriately skilled to provide rapid on-the- K16M (US5M) ground assistance COMMITTED IN CASH AND KIND TO…
OSH RELIEF EFFORTS PARTNERSHIPS AND IN-COUNTRY EXPERTISE IN ACTION OIL SEARCH 2018 ANNUAL MEETING 11 MAY 2018 PAGE 7
PNG LNG PROJECT RECOMMENCED PRODUCTION IN MID-APRIL LNG production resumed in April, ahead of operators previously estimated eight week timeframe: Both LNG trains at Plant site operational LNG exports have resumed Operator expects…
PNG LNG ECONOMIC BENEFITS DISTRIBUTION Since Project commenced production in mid-2014, PNG has received K14bn from PNG LNG Project, with K3.9bn paid to State and landowner entities in royalties, development levies and equity…
PROGRESSIVE RESUMPTION OF OSH-OPERATED PRODUCTION Central Processing Facility resumed operations in late March: Oil production progressively reinstated from Kutubu Gobe Processing Facility back online in late April, following…
2018 PRODUCTION FORECAST REVISED TO 23 26 MMBOE OIL SEARCH NET PRODUCTION (MMBOE)1,2 35 OSH-operated PNG LNG 29.25 30.25 30.31 30 23 - 26 25 19.28 20 15 10 6.74 5 0 2013 2014 2015 2016 2017 2018F 2018 Production Guidance…
LNG EXPANSION TARGETING 2H18 ENTRY INTO FEED Alignment reached on optimal downstream development concept: Three 2.7 MTPA trains, two supported by Hides Papua LNG (Elk-Antelope), one by PNG Juha Elk-Antelope Kutubu LNG and…
OPPORTUNITIES FOR SHARING AT PNG LNG PLANT SITE Sharing of shipping channel and, if necessary, construction of spur instead of new jetty Reduction of additional tank storage requirements Sharing of utilities, Proposed power…
EXPANSION UNDERPINNED BY STRONG RESOURCE POSITION Recertification of Pnyang field completed in 1Q18: Incorporated results of successful Pnyang South 2 well Resulted in tripling of gross 1C certified resource to 3.51 tcf, 2C…
LNG EXPANSION WELL POSITIONED FOR GROWTH IN GLOBAL LNG DEMAND Global LNG Supply Demand Balance Global LNG demand grew 600 11% in 2017. Global LNG growth expected to be 5% 500 p.a. to 2030 NE Asian markets prioritising 400 gas…
KEY EXPLORATION ACTIVITIES IN 2018 Muruk OSH drilling three appraisal wells in 2018: Kimu 2, Forelands (2Q18) NW Foldbelt Barikewa 3, Forelands (2Q/3Q18) Muruk 2, NW Highlands (4Q18) Undertaking largest operated onshore seismic…
OPTIMISING FUTURE PNG EXPLORATION Substantial discovered resource with material exploration upside: Highlands: Hides, Muruk, Pnyang trend Gulf Onshore: Elk-Antelope look-alikes Gulf Offshore: Reef and Clastic Plays Deepwater…
ALASKA ACQUISITION COMPLETED US400m acquisition of assets in North Slope Alaska completed Feb 2018, operatorship assumed Mar 2018 Includes discovered, undeveloped Nanushuk oil field: Acquisition based on estimated resource of 500…
MATERIAL PRODUCTION PLUS EXPLORATION UPSIDE Recent ConocoPhillips drilling adjacent to Nanushuk has verified play: Discussions underway to determine areas of potential cooperation OSH 2018/19 drilling programme to focus on…
OTHER PNG FOCUS AREAS Construction of power station in Port Moresby Completion of APEC Haus FEED decision on Biomass project Development of Papua New Guinean workforce and support of new diversity goals Ongoing social…
KEY PRIORITIES FOR 2018 Safe ramp up of production from OSH operations and PNG LNG Project following Highlands earthquake FEED entry decision in 2H18 for PNG LNG expansion and Papua LNG Define future exploration and appraisal…
THANK YOU 2018 Annual Meeting When the pieces come together OIL SEARCH LIMITED ARBN 055 079 868 ASX: OSH POMSoX: OSH US ADR: OISHY www.oilsearch.com
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