U Aye Kywe MYANMAR OFFSHORE LTD. 9 September 20111

2

DivisionofOilandGasIndustry:Theoilandgasindustryisusuallydividedintothreemajorcomponents: Upstream,Midstream andDownstream,thoughmidstreamoperationsare usuallyincludedinthedownstreamcategory. The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The midstream industry processes stores markets and transports processes, stores, commodities such as crude oil, natural gas, Natural Gas Liquids (NGLs), and Liquefied Natural Gas (LNGs, mainly ethane, propane and butane) and sulphur sulphur. The downstream oil sector is a term commonly used to refer to the g , g g refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil. Such products include liquified petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil, other fuel oils, asphalt and petroleum coke.3

Upstream Industry:Exploration searchofoilandgasbygeologicalandgeophysicalmeans Drilling makingaholeatthewellsitedeterminedbyexploration results Production extraction of oil and gas from underground formations to surface, separation, treatment, measurement, control and distribution

4

Exploration Methods:VisualObservationofSeepage,Outcrop Vi l Ob i fS O andtopographicfeatures GravitySurvey Gravity Survey MagneticSurvey SeismicSurvey Seismic Survey ElectromagneticSurvey

5

SeismicSurvey S i i S :

The most common technique for finding reserves is seismology which uses shock waves and interpret the waves reflected back to the surface. Seismic waves reflect off rock formations and travel back to hydrophone or geophone receivers.

MARINESEISMICSURVEY

Geologists then estimate the structure and types of formations under land by measuring travel times of the returned energy. This tells gy them where to drill. Despite all the advanced technologies, modern oil exploration methods still have a high degree of uncertainty.

3DSEISMICSECTION

6

HowSeismicSurveyworks

SeismicVibratorTrucks

Geophones

SeismicCrosssectionImage

7

OffshoreSeismic

Seismicsurveyvesselatwork Seismic survey vessel at work8

OffshoreReceiverSpreads

3DSeismicImaging

9

SeismicDataProcessing&Interpretation

10

SeismicDataProcessing&Interpretation

11

SomeServicesinSeismicIndustry:2DSeismicSurveyDataAcquisition 3DSeismicSurveyDataAcquisition SeismicDataProcessing SeismicDataInterpretation LogisticsandTransportation SupplyofConsumables

12

Drilling :1

4 8 13 10 15 11 7 16 17DRILLINGRIG

9

3

2 5

14 12

6

Drilling for oil and gas is done with a drilling rig. Componentsofadrillingrigare: 1. DerrickorMast 1 D i k M t 2. RotaryTableorTruntable 3. Drawworks 4. HoistingSystem 4 Hoisting System 5. MudPumps 6. EnginesandGenerators 7. DrillString 7 Drill String 8. Swivel 9. StandpipeandRotaryHose 10. KellyandKellyBushing 10 Kelly and Kelly Bushing 11. SlipsandSpiders 12. MudTanksandSilos 13. BlowoutPreventer 14. ShaleShaker 15. Substructures 16. DrillCollar 17. Bit13

14

15

16

SomeServicesinDrillingIndustry:DrillingRigContracting Casing,TubingSupplyandRunning Cementingandsupplyofcementandadditives d l f d dd DirectionalDrilling,MWD&LWD DrillingEquipmentandFishingToolsSupply D illi E i t d Fi hi T l S l MudLogging SupplyofDrillingFluidMaterial Supply of Drilling Fluid Material WirelineLogging&Perforating LocalLogistics Local Logistics HelicopterCharter WellTesting Well Testing Diving WellSiteCivilWorks17

Production:

ProductionPhaseconsistsofthefollowing: Selectionandinstallationofwellhead,Christmas treeanddownhole completionequipment IntegrityTestofwellheadequipmentandcasing Integrity Test of wellhead equipment and casing Perforatingthepayzone Initiationofformationinflowintowellbore Control,MonitorandProducetheincomingoil&gas Control, Monitor and Produce the incoming oil & gas InstallationofArtificialLiftequipment Measurementofproducedvolumeandproperties Storage g Transportationtorefineryorpetrochemicalplants Gascompression Wellservicingandequipmentmaintenance Workoveroperations GasTransmissionandDistribution

WELLHEADCHRISTMASTREE

OILWELLPUMPINGUNIT

18GASFILTERSATPIPELINECENTER

Production:

A Well Servicing Truck at work19

Production:

A Well Snubbing Unit at work20

Production:

Skid Mounted Natural Gas Compressor Unit21

Offshore PlatformTherearecurrentlysevendifferent varietiesofoffshoreplatforms.

FixedPlatform Fi d Pl f CompliantTower SeaStar FloatingProductionSystems Floating Production Systems TensionLeg SubseaSystem SPARPlatform. SPAR Platform.22

ROV (Remotely Operated Vehicle)Tetheredunderwatervehiclecommon indeepwaterindustries Unoccupied,highlymaneuverableand operatedbyapersonaboardavessel Linkedtotheshipbyatether (sometimesreferredtoasanumbilical cable) Equippedwithatleastavideocamera andlights and lights Mayincludesonars,magnetometers,a stillcamera,amanipulatororcuttingarm, still camera, a manipulator or cutting arm, watersamplers,andinstrumentsthat measurewaterclarity,lightpenetration andtemperature. p23

Jacketed Production Platform

24

Semi-submersible Platform

ThunderHorse,asemisubmersibleplatformownedbyBP,wasfoundlisting , p y , g afterthecrewreturned.TherigwasevacuatedforHurricaneDennis.25

FPSO (Floating Production Storage & Offloading Unit)Used for the processing hydrocarbons and for storage of oil. of

Designed to receive hydrocarbons produced from nearby platforms or subsea template, process them, and store oil Offload onto a tanker or transport through a pipeline. Used only to store oil (without processing it)

26

SomeServicesinProduction:SupplyofDownholeandWellheadEquipment SupplyofOilCountryTubularGoods(OCTG)andlinepipes SupplyofGasSeparation,Control,MeteringandTransportation Equipment E i t SupplyofWellServicingTrucks SupplyofGasCompressors Supply of Gas Compressors SupplyofAcidizingandFracturingMaterial

27

MYANMAR OIL & GAS UPSTREAM IN USTRY INDUSTRY INFORMATION

28

OIL&GASFIELDSOFMYANMAR (ONSHORE)SRNO. OIL&GASFIELDS YEAROFDISCOVERY SR NO OIL & GAS FIELDS YEAR OF DISCOVERY REMARKS 1 YENANGYAUNG 1887 PRODUCING 2 3 4 5SHWE

AYADAW CHAUK PAYAGON GO MYANAUNG PYAY SHWEPYITHA 1967 PYALO MANN LETPANDO PEPPI HTAUKSHABIN HTANTABIN KANNI APYAUK SHWEGU KYAUKKWET/ 1995 / LETPANDO INDAING NYAUNGDON 1999 THARGYITAUNG/SABE PRODUCING MAUBIN KANHTOO

1893 1902 1959 9 9 1964 1965 PRODUCING 1969 1970

PRODUCING PRODUCING SUSPENDED S S PRODUCING PRODUCING SUSPENDED PRODUCING 2YEARS&SUSPENDED 2 YEARS & SUSPENDED

6 7 8 9 10 11 12 13 14 15 16 17 18M9

1974PRODUCEDFOR 1976 1978 1980 1985 1991 1994 PRODUCING 1996 PRODUCING 2001 2001 2006 2007 PRODUCING 29 PRODUCING SUSPENDED PRODUCING PRODUCING SUSPENDED PRODUCING PRODUCING SUSPENDED

19 20 21 22

MyanmarCurrentOilandGas ProductionOnshore(MOGE) Onshore (MOGE) Oil:7,500barrel/day Gas:70millioncuft/day Offshore(PSC) Oil:12,000barrel/day(condensate) y Gas:1300millioncuft/day

MyanmarPipelineNetworkOnshore(MOGE) Onshore (MOGE) Length: 1966miles Size: 6to20inchdiameter Offshore(PSCExportline) Length:216+39miles(Yadana) 126+42miles(Yetagun) 95+87miles(Daw Nyein) Size: 36 diameter (Yadana) 36diameter(Yadana) 24diameter(Yetagun) 24diameter(Daw Nyein)

30

CrudeOiland NaturalGasReserves NaturalGasReserves

RecoverableReserves(asat112009)

Location

Crude Natural Oil Gas (MMBBL)(TCF) 0.97

Onshore502

Offshore8110.630 Offshore 81 10 630

31

CURRENTONSHOREOPERATINGCOMPANIESCOMPANY BLOCK FIELD/AREA FIELD / AREA

MPRLE&PLtdMOGE2 MannField GoldPetrol G ldP l MOGE1 IOR2 ChaukField IOR 2 Ch k Fi ld YenangyaungField

FocusEnergyLtdMOGE2 Htaukshabin/KanniField ChinneryAssetsLtdIOR4 PyayField CNOOC PSCM PSCC1 PSC C1 PSCC2 PSCDMahudaung PSCL Sittwe Kyaukphyu Indaw ShweboMonywa

SINOPEC ESSAR

SilverWaveEnergyPSCB2Zepyutaung NobelOil PSCA Hukaung PSCB1

Uyu

Note:9oilcompaniesareworkingin13onshoreblocks: 32

CURRENTOFFSHOREOPERATINGCOMPANIESCOMPANY Daewoo TOTALE&PMyanmar PetronasCarigali PTTEP M9 CNOOC ESSAR A2 NgweOil&GasLtd MPRL E&PLtd. SilverWaveEnergy CNPC Rimbunan/UNOG ONGCVideshLtd TwinzaOil PetroVietnem/EDIN BLOCK A1/A3 AD7 M5,M6 FIELD/AREA ShweProject DeepWater YadanaProject

M12,M13,M14 YetagunProject ZawtikaProject M3,M4,M9,M11 A4 M10 M8 A6 A7 AD1,AD6,AD8 M1 AD2,AD3,AD9 , , YEB M2

DeepWater DeepWater p

Note:14oilcompaniesareworkingin28offshoreblocks. Note : 14 oil companies are working in 28 offshore blocks.

33

YADANAGASPROJECTSUMMARYLOCATION BLOCKS SELLERS : MOATTAMAOFFSHORE MOATTAMA OFFSHORE : M5/M6 5/M : TOTAL 31.24% 31.24% UNOCAL 28.26% 28.26% PTTEP 25.50% 25.50% MOGE 15.00% 15.00% : PTTPlc 6.5TCF 5TCF : 565MMCFD/565MMCFD 565MMCFD/565MMCFD : 125MMCFD 125MMCFD WellheadPlatform1(7WELLS) WellheadPlatform1(7WELLS) Wellhead Platform 1 ( 7 WELLS ) WellheadPlatform 2(7WELLS) 2(7WELLS) WellheadPlatform3(2WELLS) WellheadPlatform3(2WELLS) ProcessPlatform Process Platform AccommodationPlatform FlaredPlatform MediumCompressorPlatform(underconstruction) PipelineCentre MeteringStation 216Miles36Pipeline(Offshore) 216Miles36Pipeline(Offshore) 39Miles36 39Miles36 Pi li ( O h 39 Mil 36Pipeline(Onshore) 36Pipeline(Onshore) ) 1998 : 1200MM$ 1200MM$

BUYER RESERVES EXPORTDCQ DOMESTICGAS OFFSHOREFACILITIES OFFSHORE FACILITIES

:

:

ONSHOREFACILITIES PIPELINES

: :

STARTOFGASEXPORT : PROJECTCOST

34

YETAGUNGASPROJECTSUMMARYLOCATION BLOCKS SELLERS TANINTHARYIOFFSHORE TANINTHARYI OFFSHORE : M12/M13/M14 12/M13/M : PETRONAS40.75% PETRONAS40.75% NIPPON 19.40% 19 40 % PTTEP 19.40% MOGE 20.45% BUYER : PTTPlc PTT Pl RESERVES : 4.16TCF EXPORTDCQ : 400MMCFD (Produceabout30bl condensate/mmscf (Produceabout30bl condensate/mmscf ) (P d b 30 d / f OFFSHOREFACILITIES : DrillingPlatform(10Wells+4infillwells) ProductionPlatform FSO ONSHOREFACILITIES : PipelineCentre MeteringStation PIPELINES : 126Miles24Pipeline(Offshore) 126 Mil 24 Pi li ( Off h ) 42Miles24Pipeline(Onshore) STARTOFGASEXPORT : 2000 INITIALPROJECTCOST : About700MM$ $35

:

36