Committed to Delivery and Sustainable Development

PDO MEDIA BRIEFMarch 3rd 2014

Ministry of Oil and Gas

Our Vision Our Vision

Strategic Priorities “Stay the Course”

Top Quartile ultimate recovery & EOR

Unconventionals

Lean & continuous business improvement

In-country value commitment

STRATEGIC PRIORITIES

Increasing complexity

Creamed plays

Regional gas shortfall

Regional competition

Commodity costs

Local Employment

CHALLENGES RESPONSES

• 10 year oil production plateau of 550,000+ bbls/d

• Reserves and scope replacement ratios >1

• Support government gas demand & strong revenue generation

• Sustainability and HSE

• Development of Omani talent & businesses

Safety in Everything We Do

Lost Time Injury Frequency

Total Recordable Case Frequency

TRCF LTIF

0

0.2

0.4

0.6

0.8

1

0

1

2

3

4

5

2006 2007 2008 2009 2010 2011 2012 2013

Re-defining the “Home Commute”

Over 170 mln manhours of exposure

525

550

575

2009 2010 2011 2012 2013

2013: A Record Production YearProduction (kboe/d)

-

250

500

750

1,000

1,250

1,500

1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

2013 Production: 1,254 mln boe/d• Black oil: 569.7 kb/d• Condensate: 85.9 kb/d• Non-Associated Gas: 510.7 kboe/d• Associated Gas: 87.7 kboe/d

550

Oil Production (kbbl/d) Non Associated Gas Production (mln m3/d)

Associated Gas

Non Associated Gas

Condensate

Black Oil

60

70

80

2009 2010 2011 2012 2013

PDO Project Funnel

HaburTAGOGD

KarimW.WF

Fahud EOR

Greater BirbaMGI & EOR

NimrG WF

Yibal ShuaibaEOR

Amal SEThermal

DG 2DG 3

DG 4 / FID

DG 1

Exploration Depletion

Nimr BInfill

Al GubarCold GOGD

GN TAGOGD

Karim WestPolymer

AGS EOR

GreaterTaliah

MafraqTAGOGD

Habhab(Pilot)

TibrWF

Al BurjAK

Haima WestPoly

Habhab EOR

Nimr PolymerFull-Field

ExplorationWater-Flood

AqeeqWF Amin Stm

(pilot)

RHIP

Nimr ARedevelop

YibalAttic

MarmulAK ASP

Conventional EORSour

Al Noor MGIPh. 3A

Rima EOR

NimrGharif Rim

EOR

Al NoorMGI

Recovery

Harweel 2AB

MML ASP(pilot)

AmalSteam

HarweelPhase 3

ThayfutPolymer

Greater RimaDev.

YibalKhuff

AminEOR

Dafiq

Nimr Poly.(pilot)

BudourNE WF

AmalSteam Ph.2

GN GOGD

MarmulAK Poly

Ph.3

AminEORFlank

Saih RawlPolymer

QASlate-life

AGEOR

Amal2nd Cogen

Amal Solar(pilot)

(Key Projects)

AminInfill & WF

Haima WestWF

Burhaan

LekhwairUpper Shuaiba

Hanya

Lek DME(pilot)

Al Noor MGIPhase 3B

Operate

SOLAR STEAM TRIAL – AMAL WEST• First solar steam produced on

December 12 2012

• Over 1 year operation, produced 13,000 tons steam saving:

• 1 mln m3 of fuel gas

• 1,800 tons CO2 emissions

• Phase 2 scope progressing (incl. ICV)

Leadership in Environmental Sustainability

• Successful reed bed treatment of up to 660,000 bbls/d produced water. Expansion underway to 720,000 bbls/d by mid year

• Covers an area of 10.5 km2

• 98% reduced energy requirements and GHG emissions

• Creation of an eco-system with over 100 species of birds and fish

• Winner of 10 national and international awards

REED BEDS – PRODUCED WATER TREATMENT

Phase 1

Phase 2

Productivity increase:-60%: Frac unit moves (from 5.5 to 2 days )

-83%: Permit To Work validation (from 90to 15 mins)

Cost savings and cost avoidance:-45%: Well Chemical Consumption

(~US$2.35mln saving /year – Nimr)

Inventory reduction-70%: Local Spares Inventory reduction(~US$1 mln saving - Marmul)

WRM Production gainsGas Lift - Early Breakthrough System: Rapidresponse yields production gains

LEAN – “Doing more with what we have”

4000

5000

6000

2011 2012 2013

People make it happen

Well engineering is staffing up

Resourcing the Business

• 827 Omanis recruited, incl. Graduates and Tops

• 220 young Omanis joined the Technician Omanisation Programme (TOP)

• 712 Scholarships (home and abroad)

• ADIPEC Award: Empowerment of Women

(Omanis)

(Round 1, 2 & CWI Graduates)

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013

Graduates

TOPs

ICV: Delivering Training & Employment

> 10,000 Jobs and

Opportunities

0

5000

10000

2011 2012 2013

Social Investment Projects 2013

13 major projects completed

8 MoUs:

• Darsait breakwater• Pottery workshop• Livestock-Al-Jazer• 3 Majlises-Shaleem• Multi-purpose Hall-Ibri• Camel race track-Ghaba• Vet Clinic-Hamra Duru• Bus for elderly friends

600 beneficiaries from water haulage program

570km graded roads in the community

Completed the socio-economic study of the

concession area

GCC Ministerial Council Award in social programmes

2013: A Landmark Year New safety and production records

Robust reserves additionsPromising unconventional oil and tight gas opportunities

New milestones in project delivery and asset integrityStep changes in In-Country Value and business efficiency

Ramped up social investment programme

PDO Managing Director’s Committee