Deepwater Oil and Gas Malaysia

Bergen

24 April 2007

2

Contents

1. PETRONAS – What it is

2. Activities & Opportunities in Deepwater Oil & Gas Malaysia

3. Planned events during 2007

4. Business Culture

3

PETRONAS – National Oil Company

• 100% government owned

• Holds exclusive ownership and control over

all petroleum resources in Malaysia

• Regulates E & P activities through Production

Sharing Contract. To date 62 PSCs awarded.

• All companies providing services/ products

in upstream sector need to be licenced by PETRONAS

4

PETRONAS – International oil company

• A fully integrated & International oil company with more than 63

international ventures in 33 countries

• Involves in upstream sector in 24 countries with recoverable

reserves of 5.94 BBOE

• Ranked as one of Fortune 500 largest corporations & recorded a

profit of USD11.566 billion as at 31/03/06 on turnover of

USD44.282 billion

5

Deepwater areas

Major Deepwater Opportunities in SEA

Indonesia: Major natural gas discoveries in the deepwater KuteiBasin, deepwater exploration in the Tarakan and Papalang Basin

Thailand: Several significant offshore discoveries in the Gulf of Thailand recently

India: Active E&P activity, 70% of offshore acreage is deepwater

Vietnam: Considerable deepwater potential

Malaysia: Offshore Sabahis the region’s exploration hot spot, 20 PSCs in deepwater & 16 discoveries

6

• 71 Exploration Blocks – 44 awarded and 27 still open

• 22 Deepwater/ Ultra DW blocks – 20 awarded to 8 PSC contractors

• 146 oil & 195 gas fields discovered – only 53 oil & 23 gas fields

producing

• Oil reserves incl. condensate 5.25 bb and gas 87.95 tscf, Jan 2006

Exploration acreages – 565,500 km2

7

Source: Petronas

Malaysia has 5.25 billion barrels of oil reserves and 87.95 trillion cubic ft of gas reserves

Deepwater gas4%

Shefal gas96%

Shelfal oil74%

Deepwater oil26%

5.25 billion barrels of oil and condensate

87.95 trillion cubic feet of gas

8

Shelfal Oil, 35%

Deepwater Oil, 65%

Deepwater Gas, 43%

Shelfal Gas, 57%

Deepwater/Ultra Deepwater to contribute major portion of undiscovered resources – 10 billion boe

Source: Petronas

9

Positive results in Malaysia deepwater the past years

1993 1994 1995 1998 2002 2003 2004 2005Malaysia as Deepwater Regional

Hub

Deepwater PSC

Introduced

KebabanganGas

Discovered

First Deepwater Exploration

Well (1170m)

Kamunsu East (Gas)

Discovery

Kikeh Oil Discovery

Limbayong Gas Discovery

Gumusut/KakapOil Discovery

Ubah, Pisanganand Jangas Oil & Gas Discoveries

Kikeh FDP ApprovedFirst SPAR in Malaysia

First GAP Application in the World

Malikai Oil DiscoveryFirst SBL Application in

Malikai

Source: Petronas

10

Deepwater/ Ultra Deepwater Discoveries

ShellQ2 2013>1000 m2.2 tscfKamunsu

ShellQ3 2012>1000 m56 mmboePisangan

ShellQ2 2012>1000 m215 mmboeUbah Crest

Murphy OilQ4 2011>1000 m81 mmboeJangas

ConocoPhillipsQ3 2011> 200 m2.2 tscfKebabangan

ShellQ2 2011480 m108 mmboeMalikai

ShellQ4 2010/

Q1 2011

1,100 m620 mmboeGumusut/ Kakap

Murphy OilQ2/Q3 2007

1,300 m536 mmboeKikeh

OperatorOnstream Date

Water Depth

RecoverableField name

11

Fast Track Implementation of Deepwater Projects

Kikeh

Gumusut/Kakap

Malikai

Kebabangan

Jangas

Ubah Crest

Pisangan

Kamunsu

2007 2008 2009 2010 2011 2012 2013

Exploration Strategy

Exploration

Appraisal & Reservoir Evaluation

Field Development Studies

Preliminary Engineering

Project Implementation

Indicative first oil

Legend

12

43 Deepwater Exploration Wells Planned 2007-2010

10 1011 11 11

0

5

10

15

2006 2007 2008 2009 2010

13

Malaysia: Total expenditure: USD35,683 million Expenditure Breakdown 2007-2010

430

1136,299

9722,953

65628983

915,868

10,053

8,5582,110

438

- 2,000 4,000 6,000 8,000 10,000 12,000

US$ million

Seismic Data AcquisitionReservoir Management

Offshore DrillingSubsea Technologies and Equipment

Fixed PlatformsFloating Platforms

Platform Design & Project ManagementE, I & T

Marine Systems & EquipmentMaintenanceModifications

OperationsDownhole & Well Services

Decommissioning

Source: Infield/INTSOK

14

Malaysia is looking for companies to establish strong bases in Malaysia

Pipeline installationInstallation

Subsea Modules

Umbilical/Fluid Transfer Lines (FTL)

Flowline & Risers

Design, Engineering & Manufacturing

Fabrication – Topside & HullSupport Structure Fabrication

Hull Design – Floating Vessels/Wet Tree Units

Hull Design – Dry Tree units (DTU)

Topside Design

Support Structure Engineering

FEED & Feasibility StudiesDevelopment Concept

Key ActivitiesKey Areas

Source: Petronas

15

Other Areas of Opportunities/ challenges

• Strategic alliance with Petronas – capacity building

• Small or marginal fields Development

• Brown Fields development

• High CO2 content

• Enhanced Oil Recovery in matured fields

• Demand for rigs/ semi-sub

• Marine vessels

16

Norwegian companies in O&G sector

17

Planned Events 2007

• Jan: Resource Management by Petronas/Petrad

• June 6-7: Pipeline Integrity workshop by Petronas/Intsok/

Petrad

• June 13-15: Norwegian Pavilion at Oil & Gas Asia Exhibition

• June 25-29: PETRONAS Delegation to Norway by IN KL/Intsok

• Nov 26-28: Deepwater Technology workshop by Petronas/

Intsok/ Petrad

18

Malaysia: Business Culture

• Multi-racial & multi-cultural society - 3 major distinct races. Advantage to differentiate races for business and social reasons

• Personal relations are important for business. Building trust takes time

• Consciousness in social hierarchy

• Reflected in hierarchical structures of Malaysian companies

• Honorific Titles- Datuk, Dato, Datuk Seri, Tan Sri & Tun.

• Importance of Designation

• Face Value – has a lot of significance in workplace and business relations. Once a person loses face, he/she may withdraw from the interactions of business negotiation altogether.

19

Malaysia: Business Culture

• Respect for elders by the way one speaks, addresses or behaves towards one’s elder.

• Managers or leaders are considered “elders” and wise. Decisions of leaders hardly challenged.

• Understand the Decision Making Process of the organization you are dealing with – crucial for business success

20