Tullow Oil – An Irish Success StoryEngineers Ireland, 06 October 2010

Slide 1Engineers Ireland

Disclaimer

This presentation contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil and gas exploration and production business and production business.

Whilst Tullow believes the expectations reflected herein to be reasonable in light of the information available to them at this time, the actual outcome may be materially different owing to factors beyond the Group’s control or within the materially different owing to factors beyond the Group s control or within the Group’s control where, for example, the Group decides on a change of plan or strategy.

Th G d t k bli ti t i h f d l ki t t t The Group undertakes no obligation to revise any such forward-looking statements to reflect any changes in the Group’s expectations or any change in circumstances, events or the Group’s plans and strategy. Accordingly no reliance may be placed on the figures contained in such forward looking statements.

Slide 2Engineers Ireland

Contents

S ti PSection Page

History of Tullow Oil 4

Company Projects 11

Tullow Culture 18

Forward Plans 21

Q & AQ & A

Slide 3Engineers Ireland

Tullow History

• Founded by Aidan Heavey in 1985

- No oil industry experience

- No money

- No local market

• Today Tullow’s market cap. is US$17 billionbillion

- Operations in 24 countries

- Production of 60,000 boepd

- 30th largest company on FTSE

Exploration Growth

Borrow and Buy

Establish Company

Start Up

Slide 4Engineers Ireland

Senegal 1986 – Tullow’s First Project

• Senegal

• Old abandoned wells

• Old abandoned pipelines

• Unavailable power station

• Challenge . . .

• Get wells on production

• Repair pipeline

• Get power station working with gasg g

• Drill and explore

Slide 5Engineers Ireland

Typical Early Asset – Suri Field Pakistan

• Dublin office managed assets in Pakistan, UK, Syria, Egypt, Romania, Bangladesh and Ivory C Coast.

• Tullow’s early focus was on low cost, onshore.

• Full cycle E&P approach:Li li ti- License applications

- Acquire geological data and seismic

- Exploration drilling

- Appraisalpp

- Development

- Production Operations

• In 1990s Tullow built a base for future growth

Slide 6Engineers Ireland

2001 – 2007 Major Acquisitions

• BP Southern North Sea Assets (£200mm)- Big step change in value and manpower

- Re-registered as a UK company in 2000

• Energy Africa ($570mm)- Increased African portfolio in 2004

- Timing was great with rise in oil prices

- Integration challenge – assets & staff

• Hardman Resources ($1.1bln)- Friendly acquisition in 2007

- Added Mauritania and Uganda acreageAdded Mauritania and Uganda acreage

Fast & Flexible Deal Maker

Slide 7Engineers Ireland

Fast & Flexible Deal Maker

Ghana programme delivering excellent results

Four fields discovered since 2007

J bil ld l il fi ld • Jubilee – world-class oil field

• Odum – potential satellite development

• Tweneboa – oil and gas-condensate field

• Owo – major new light oil field discovery

Ongoing Exploration and Development

• Jubilee 1st Oil Nov/Dec 2010

• 120,000 bopd production

• Forecast Capex - $3.35 billion

O o T eneboa & On in a ells• Owo, Tweneboa & Onyinya wells

Slide 8Engineers Ireland

Ghana – FPSO Kwame Nkruhmah

Discovery to first oil in 40 months

Slide 9Engineers Ireland

Discovery to first oil in ~ 40 months

Uganda

• 1 Billion barrels discovered

35 t f 36 ll f l • 35 out of 36 wells successful

• Purchased Heritage Oil’s share

A i h T l d • Agreement with Total and CNOOC for divestment

Discovered

Ugandan Resources (P50)

Resources

Prospective Resources

>2.5bn boe

Slide 10Engineers Ireland

Tullow offices worldwide

DublinIreland

U.K./Norwich

LondonU.K.

Netherlands

Pakistan

Mauritania

Bangladesh

KampalaUganda

Côte d’IvoireGabon

Senegal

Corporate Offices

Key Regional Offices

Tanzania

Madagascar

Uga da

Accra/TakoradiGhana

Namibia

Angola

Note: Tullow also has serviced offices in French Guiana.

y g

Local Offices

Cape TownSouth Africa

Slide 11Engineers Ireland

Resourcing Model - Contract and Outsource

• Joint Ventures – Operated v Non Operated- Industry wide model to mitigate risk

• Core Competence – Internal- Drilling design planning & controlDrilling design, planning & control

- Seismic interpretation

- Geological interpretation

- Reservoir Engineering

- Planning and EHS compliance

• Outsource for Offshore Services- Drilling Rigs

- Seismic Vessels

- Design, Fabrication & Installation

- Field operations

Slide 12Engineers Ireland

In-House Drilling and Reservoir Engineering Expertise

• Drilling Engineering

- Safe environmentally compliant wells- Safe, environmentally compliant wells

- Well planning & design

- Maintain production wells

• Reservoir Engineering

- Reservoir modelling & prod forecasts

- Field well count and prod ratesp

- Reserves booking

• Development and Operations

- Safe surface facilities

- Design and project management

- Manage field operations

Slide 13Engineers Ireland

In-House Geology and Geophysical Expertise

1) Interpret seismic data2) Identify potential leads and prospects

BEFORE INTERPRETATION

13km

Top Triassic

Top Permian SaltMiddle Jurassic

Sea Bed

1 2 3

Slide 14Engineers Ireland

AFTER INTERPRETATIONTop Permian Reservoir

Jubilee subsea facilities

Subsea EquipmentQuantity

Installed Total

Umbilicals 14 14 Miles

Ri id J 2 41

WEST SIDE EAST SIDE

Rigid Jumpers 2 41

Rigid Flowlines 29 29 Miles

Trees 14 16

Electrical Flying Leads 48 110

Steel Flying Leads 37 46

Manifolds 8 8

Tether Pile 9 9

Riser Bases 2 2

Slide 15Engineers Ireland

Average water depth – 1,200m

Jubilee FPSO – Topsides Equipment

Gas compression - Singapore

Water treatment - Malaysia

Oil processing – Indonesia

Slide 16Engineers Ireland

Turret Lift - Singapore

Jubilee field – Operational scale

Initial Estimate (Phase 1)

150-160 Tullow Ghana positions

~700 in-country total

Accra-Takoradi upgraded air-bridge from Nov 09, 10-15 contractor

HQ office~130 TLW +20-30 contract + MODEC Accra

~700 in country total contractors, of which ~400 rotational positions

Total personnel ~1200

P j t i t ll 400 500 Project install +400-500 persons at any one time

Supply + port base+ port ~30 TLW + 20-30 contract persons inc MODEC+ ~25 direct labour contractor+20 stevedore etc

MPV – Bourbon Astyanax

FPSO 50-80 POB, max 120 Rig 1, 100-120

Da ghte

Upgraded helo operation10 pax + 2 crew, x2 craftLatest OGP spec; 20-25 contractor

Daughter Craft.

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Tanker handlingTug/AHT ~12

Rig 2, 100(rig share)

Marine Fleet1 MPV with ROV, 1-3 AHT/PSVs1 daughter craft, ~100 direct contractor staff

Creating Stakeholder Value

- Ghana: Jubilee discoveryGhana: Jubilee discovery& fast track development

- Uganda: commercialisation, pre-emption & farmdown

Consistent and repeatable strategy• Sustainable long term growth

• Balance exploration, major projects & funding

- High impact exploration portfolio

• Safety, environment, stakeholders & people

Underpinned by financial strategy- $2.75bn debt facilities

- $2.1bn equity placings

- Uganda transactions

Underpinned by financial strategy

• Strong, well funded balance sheet to enable growth

- Debt and equity funding

P tf li tg

- Jubilee Phase 1 first oil Nov/Dec 2010

- Portfolio management

• Significant future operational cash flow

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Tullow Values

Focus onResults

WorkIntegrity and

Respect

Work Together

EntrepreneurialSpirit

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Social Enterprise Approach and Strategy

‘Establishing a culture of success that cuts across many social sectors’

Slide 20Engineers Ireland

y

Industry Outlook

Peak Oil

• Supply & Demand

• Oil price outlook

Shale Gas

Gas p icing impact• Gas pricing impact

• LNG market

Slide 21Engineers Ireland

Competition

Chevron

Total

Gazprom

• National Oil Companies

Petronas

Shell

BP

Sinopec - Different type of Competitor

- Access to Licenses

- Overseas expansion

0 100 200 300 400

PetroChina

ExxonMobil

BHP Billiton

M k C $B

p

Market Cap $Bn

• “Drilling on Wall Street”

- Threat of Acquisition

- Premium required by shareholders

- Not in Tullow’s Plans

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Corporate Level

• Build on Success

- Add acreage, develop discoveries$1,483m2010 Forecast$1,500m

• Long term view

- Deliver on promises to shareholders

2009 $1,140m

- Company reputation and resources

• Portfolio Balance

C i i l

2008

0 400 800 1200 1600

$720m

2000

- Contingent to commercial reserves

- Finance growth and exploration

P&D E&A

Slide 23Engineers Ireland

Summary

• From small start up to FTSE 100p

• Entrepreneurial outlook

• Get right people

• Success is possible

Slide 24Engineers Ireland

Tullow Oil plc5th Floor, Block C

Central Park, LeopardstownDublin, D18

Tel: +353 01 213 7300

Slide 25Engineers Ireland

website: www.tullowoil.com