1

Petroleum Overview

Philip CaldwellEGM LNG – Oil Search

2

Health, Safety &Environment

3

Safety FirstTR

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Oil Search

Australian Companies (APPEA)

InternationalCompanies

(OGP)

8.5

10.69.8 10.7

5.8

1.7

4.7

2.4 2.31 2.05

1.162.04

3.9 3.1 2.92.7

2.1

4.0

3.6

4.9

5.76.0

1.75

12.7

9.1 9.37.8

7.0

7.3

5.2

9.4

8.2

6.36.8

6.0

1998 1999 2000 2001 2002 2003 2004 2005 20072006 2008 2009 1H 10

1.71

4

Protecting the Environment

Oil Search is committed to conducting its activities in an environmentally responsible way, in all areas

Recognising the trend toward higher environmental standards, thecompany decided in 2007 to base its environmental system on the ISO 14001 standard

Full compliance with ISO 14001 achieved in early 2009 Site Specific Environmental Management Plans have been completed for approved Camps, Oil & Gas Facilities and the Marine Terminal.2 surveillance audits have been completed with good outcomes. Several opportunities for improvement are being pursued.

The company is preparing a number of proposals for submission tothe European Carbon Emissions Reduction (CER) market in 2011

The company continues to engage with project area communities to manage potential environmental impacts.

5

Flare Reduction

66

Production

7

PDL1

PPL219

PDL2

PDL5PDL6

PPL219

PDL4

PDL3

50km

Angore

Juha Hides

6°S

143°E 144°E

7°S

Oil Search Oil FieldsDevelopment Wells drilled By OSL

31 development wells, no dry holes !

Usano:6 wells

SE Gobe:4 wells

Kutubu:7 wells

Agogo:2 wells

Moran:8 wells

Gobe Main1 well

SE Mananda:3 wells

8

OSL Production Performance

0

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Pro

du

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(B

op

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OSL Operator

Kutubu SEG Wedge,Moran

UsanoKutubuMoran

AgogoMoran

UsanoKutubuMoran

Previous Operator, 2P EUR : 449 million stbOSL 2009, 2P EUR : 546 million stb

9

What Has Worked

Methodical reassessment of zones and wells that had been shut in

Bolder steps – unperforated zones in mature fields –test legacy view on zone quality – discovered that high radioactive mineral content negatively impacted reservoir quality analysis in Gobe Iagifu

Turning around injectors to produce

Challenging the geological model in areas where data is hard to explain

search for new geological interpretations

Redevelopment of poorly performing fields and blocks

10

Initial Assumptions-1000

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Hedinia 7X

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IDD 3

IDD 4

IDT 1

IDT 11

IDT 12

IDT 13

IDT 14

IDT 15

IDT 16

IDT 17

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IDT 19ST1

IDT 2

IDT 20

IDT 21

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IDT 8

IDT 8ST1

IDT 9

IHT 1IHT 1A

IHT 2

IHT 3

IHT 4

IHT 5

IST 1

IST 2

IST 3A

IST 4

IST 5

IWT 1

Iagifu 4X

Iagifu 6X

Iagifu 6XST1

Iagifu 7X

UDT 1

Gas in Centre

Top

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IHT 1IHT 1A

IHT 2

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IHT 5

IST 1

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IWT 1

Iagifu 4X

Iagifu 6X

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UDT 1

Gas in Centre

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Hedinia 1X

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IDD 1

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IDT 1

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IDT 12

IDT 13

IDT 14

IDT 15

IDT 16

IDT 17

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IDT 19ST1

IDT 2

IDT 20

IDT 21

IDT 3

IDT 4

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IDT 7

IDT 8

IDT 8ST1

IDT 9

IHT 1IHT 1A

IHT 2

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Iagifu 4X

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UDT 1

Water in Centre

Base

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IDD 1

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IDT 1

IDT 11

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IDT 14

IDT 15

IDT 16

IDT 17

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IDT 19ST1

IDT 2

IDT 20

IDT 21

IDT 3

IDT 4

IDT 5

IDT 6

IDT 7

IDT 8

IDT 8ST1

IDT 9

IHT 1IHT 1A

IHT 2

IHT 3

IHT 4

IHT 5

IST 1

IST 2

IST 3A

IST 4

IST 5

IWT 1

Iagifu 4X

Iagifu 6X

Iagifu 6XST1

Iagifu 7X

UDT 1

Water in Centre

Base

Static Oil

Moving WaterStatic Oil

Moving Water

Strong aquiferTilted contact

Conceptual map

First years of production - dynamic aquifer model preferredDynamic aquifers have been seen elsewhereNot an unreasonable interpretation for Kutubu at that time, based on available data

11

Challenging the model

Highest producing well on structure hadn’t seen gas in a gas drive system – difficult to explainThere was no water production in centre of field near where dynamic aquifer might beOther fields were demonstrating compartmentalisation – Gobe Main, SE GobeNew mapping and seismic interpretation was identifying more faulting across the fieldSimulation suggested oil in the centre of the fieldNew model emerging - untapped pool of oil in centre of field, probably compartmentalised

Drill some wells………

12

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IDD 1

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IDT 11

IDT 12

IDT 13

IDT 14

IDT 15

IDT 16

IDT 17 IDT 19ST1

IDT 2

IDT 20

IDT 21

IDT 3

IDT 4

IDT 5

IDT 6

IDT 7IDT 7ST1

IDT 8

IDT 8ST1

IDT 9

IDT 9ST2

IHT 1IHT 1A

IHT 2

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IHT 4

IHT 5

IST 1

IST 2

IST 3A

IST 4

IST 5

IWT 1

Iagifu 4X

Iagifu 6X

Iagifu 6XST1

Iagifu 7X

UDT

IDT 23IDT 23

IDT 22IDT 22IDT 4ST1IDT 4ST1

Oil in Centre

IDT 23ST2IDT 23ST2

Toro C Structure

Existing Well - Toro C PenetrationExisting Well - Toro C Penetration

NN

New Well (Oil) - Toro C PenetrationNew Well (Gas) - Toro C Penetration

Proving the new model

Drilled IDT 4ST1, IDT 22, IDT23 and IDT 23ST2New model proved correct –untapped oil pool in separate compartmentsOne well found gas – IDT23 – but subsequently sidetracked to oil filled compartmentDynamic aquifer model looking increasingly unlikely

Compartmentalised System

OWCOWC

OWC

Compartmentalised System

OWCOWC

OWC

Compartmentalised

IDT 24

13

Usano Redevelopment

Pre-OSL Usano had a poor production historyLow recovery factor (12% in main block)History of collapsed casingHistory of fractures and early gas breakthroughStructurally complex overburden

Production well, offline

Production well, online

Gas injection well, online

14

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Hedinia 2X

UDT 3AST1

UDT 3A

UDT 12

Arakubi 1A ST1

UDT 2

UHT 1

UDT 1

Arakubi 1A

UDT 4A

UDT 8

UDT 10

UDT 9

UDT 6

UDT 7 ST1

UDT 7

UDT 11

746000 746500 747000 747500 748000 748500 749000 749500 750000 750500 751000 751500 752000 752500 753000

746000 746500 747000 747500 748000 748500 749000 749500 750000 750500 751000 751500 752000 752500 753000

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Country

Datum/Projection

Elev. ref.

License

Contour inc

Date

PNG

AGD66, ANS, SUTM Z54

CPD (18.5m amsl)

PDL2

100

22/10/2009

Toro A Structure - Original Contacts

OSL Development Well

Injection

Overcoming uncertainty

Full field remap and simulationDevelopment strategy encompassed 6 additional production wells, and conversion of one well to injection5 wells are horizontal using intelligent completions to optimisestand-off from contacts and reduce structural uncertaintyHigher grade casing with liner lap extending over high risk interval

15

Usano: a rejuvenated field

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Oil

Rate

(b

op

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Usano Main BlockUsano East Block

UDT 7

UDT 8, 9

UDT 10,12

UDT 11

16

Maximising Remaining Oil

Many Subsurface Opportunities Still ExistNew Sub-Thrust Pools (Agogo / Kutubu?)Workovers of existing wells – new zonesBlock extensions (Moran)Secondary Targets (Kutubu)

Available target pool sizes for new wells are reducing: ~ 1mmstbTarget objectives have increasing riskCommercial thresholds are increasingly dependent on costs andoil priceFurther improvement in drilling performance will assist

As pool size decreases for wells and workovers, there is an increasing need for simulation with higher resolution

Thin layers separated by hard streaks are controlling how gas and water move through the reservoir

17

Facilities Optimisation

CPF to GPF crude oil transferBy transferring oil from CPF to GPF storage prior to a ship arriving, existing storage is maximisedReduced risk of tank tops and associated well shut-ins, maximise productionFewer well issues related to shut-in and start upReduced demurrage due to higher pumping rates

APF OptimisationSecond lower pressure flowline, reduces slugging, maximises production from low GOR, lower pressure wellsDebottlenecking Moran HP compressionIncrease peak injection rates and maximise injection to optimise voidage and provide flexibility to inject gas on block by block basisAPF optimisation (dehydration, CO2, inlet de-bottlenecking).Exploring options to reduce SEM flowing pressure to enhance production and reserves

Gobe & Kutubu OptimisationUpgraded LP and HP compressor capacityDebottlenecked gas injection lines

18

Integrity, Life Extension &

Preparing For Gas

19

Integrity & Life Extension

Introduction of Process Safety / Well Integrity ProgrammesManage corrosion and pressure integrityImprove integrity monitoring, test and inspection programmesAdditional Non-destructive testing of pipeworkHigh Profile reporting requirements

Corrosion & SRB ManagementInstall new pigging facilities and run intelligent pigs on export lines to KumulplatformReplace corroded water injection lines at CPFNew line provides for pigging and improved SRB controlImproved SRB monitoring and treatment has reduced SRB corrosion risk

Closer Monitoring Of Maintenance Effort / Downtime / Production Loss

Facilities & Support Infrastructure going beyond initial design lifeOngoing management of obsolete equipment Support infrastructure, camps, industrial park, warehouses overhauled

20

Associated Gas Scope

Associated Gas DeliveryEnhanced dehydration by replacing existing gas driers to improve gas quality and reduce emissionsEnhanced gas cooling for spec commissioning gas to LNG PlantAG Gas Management System by automating various wells for remote operation and upgrading plant inlet gas management systemNew and upgraded metering to manage gas reserves

Condensate StorageAdd value to the LNG Project by the Receipt, storage and export condensate from LNG Project HGCP with high reliabilityUpgrading of pipework to allow inline mixing, loss prevention (particularly fire management) and control systems

Commissioning GasInstallation of skids to allow early commissioning gas for the LNG Plant

UtilitiesImprovements to ESD system and new control roomTie ins for new equipment into existing and improved utilities

21

AGRP Changes to the - CPF

22

PL2 Life Extension Scope

Objective is to provide a highly reliable export route for oil and gas condensate liquids for the next 30 years

Installation of a new CALM buoy, tanker loading line and PLEM ata new location 7.7km south of the platform in a water depth of 35m

Allows uninterrupted tanker loading whilst the new facilities are installed

Major life extension work on Kumul platformReplacement of most of the major equipmentRepair / replacement of piping and some structural steel

Inspection, engineering assessment and maintenance to existing export line from CPF to Kumul

Primarily for fatigue life management

23

A View of The Future

PNG LNG transforms production profile, adding ~18 mmboe pa to OSH at plateau in 2015 onwards. 30 year Project life

T3 could add an additional ~9 mmboe pa, with T4 of similar magnitude

Net

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bo

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40,000

50,000

60,000

2010 2012 2014 2016 2018 2020 20262022 20282024 2030

LNG GasLNG Gas

PNG DevelopmentPNG Development

70,000

80,000

Potential T3 LNG GasPotential T3 LNG Gas

LNG CondensateLNG Condensate

90,000

Potential T3 LNG CondensatePotential T3 LNG Condensate

2424

Questions

25

Disclaimer

DISCLAIMER

While every effort is made to provide accurate and complete information, Oil Search Limited does not warrant that the information in this presentation is free from errors or omissions or is suitable for its intended use. Subject to any terms implied by law which cannot be excluded, Oil Search Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.

This presentation also contains forward-looking statements which are subject to particular risks associated with the oil and gas industry. Oil Search Limited believes there are reasonable grounds for the expectations on which the statements are based. However actual outcomes could differ materially due to a range of factors including oil and gas prices, demand for oil, currency fluctuations, drilling results, field performance, the timing of well work-overs and field development, reserves depletion, progress on gas commercialisation and fiscal and other government issues and approvals.