Tassie Shoal Methanol Project. 7 th Methanol Markets & Tech, th May 2012 Shanghai, China

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1 Tassie Shoal Methanol Project 7 th Methanol Markets & Tech, th May 2012 Shanghai, China

2 MEO Australia Portfolio Overview Australia and South East Asia Focus BANGKOK THAILAND CAMBODIA ANMAR G 22 // G MANORA JASMINE BUALUANG Gulf of Thailand TERIPANG SERUWAY PSC ARUN GURAME LEMURU r SALEM kilometers S A L E M KUALA LANGSA North Sumatra Indonesia PNG OU U TT H H M MA AD DU U RR A A PP SS CC SS O Surabaja Surabaja East Java Bonaparte Basin Carnarvon (North West Shelf) W AA PP W W AA PP W ATHENA (AUSTR CAPELLA PERSEUS PER RANKIN NORT W AA PP W GOODWYN GAEA ECHO DOCKRELL Australia PUEBLO RANKIN WHEATSTONE LADY NORA DIXON DIXON WEST PLUTO IAGO ERIS (AU) XENA 2 MEO Australia Limited

3 Strong Partnerships with Global Majors Proven Ability to Attract Major Industry Players Eni (2011) Farm-in for 50% interest in NT/P68 Full carry for up to 3 wells and 3D seismic program Full carry to FID (including appraisal) plus US$75m payment to MEO for additional 25% interest Potential value to MEO:US$85-$205m Indonesia PNG Petrobras (2010) Farm-in for 50% interest in WA-360-P US$39 million payment to MEO Full carry on up to 3 wells US$31.5 million success bonus Potential value to MEO:US$81-$237m Australia 3 MEO Australia Limited

4 Tassie Shoal Projects Overview Offshore north west Australia Australia Methanol: 2 of 1.75MTA plants, built in two stages (TSMP 1 & TMSP 2 ) LNG: 3MTA LNG plant (TSLNG) Federal & State Government Environmental approvals in place Major Project Facilitation status 430 hectares with water depth <20m 14m Sonar image of submerged shoal 4 MEO Australia Limited

5 Tassie Shoal is Centrally Located A Shallow Water Development Site Methanol production provides a monetisation path for regional high CO 2 resources 5 MEO Australia Limited

6 Methanol vs LNG Production Higher CO 2, Smaller Resources Suit a Methanol Development 1. If a large resource with high CO 2, sequestration becomes an option for LNG production If smaller resource with high CO 2, methanol production is an economic alternative 3. For mid-size resources with moderate CO 2, methanol & LNG cases can be constructed to optimise the development economics 6 MEO Australia Limited

7 The Case for Methanol Assessment of Economics, Practicality, Diversity Economics Huge capex savings vs FLNG (~US$7B) ~US$2B capex savings vs an onshore methanol plant New markets for methanol, huge growth potential Practicality Avoid CO 2 separation issues Avoid CO 2 sequestration/reinjection issues Suits size of some regional resources Only 1.4 to 1.5TCF required (incl CO 2 ) Environmental Permits in place Diversity in product mix/revenue stream Methanol market correlates to oil New markets as transport fuel, MTBE, MTO 7 MEO Australia Limited

8 TSMP Concept a Practical Solution Design Issues with Floating or LNG Only Developments Avoided AVOID CO 2 separation issues SMR converts CO 2 to methanol AVOID floating vessel motion issues AVOID CO 2 offshore reinjection complexities AVOID long pipelines to onshore facilities 8 MEO Australia Limited

9 TSMP Designed Using Industry Leaders Final selections of partners will be made during FEED/EPC 9 MEO Australia Limited

10 Overall Design Concept Methanol Plants & LNG Plant Accommodation and Accommodation Control Platform and (ACP) Control Platform (ACP) LNG Plant (~3 MTA) LNG Plant (~3 MTA) MEO 100% Methanol Methanol Plant Plant (1.75 MTA Stage 1 only) (1.75 MTA Stage 1 only) LNG Tank (170,000 m 3 ) LNG Tank (170,000 m 3 ) Methanol Load-Out SPM 10 MEO Australia Limited

11 Siting on Tassie Shoal Preliminary Layout Optimizes use of Shallow Water Site 14 metre water depth Shorter pipelines 275kms closer to regional resources than a Darwin 14m onshore base Lower construction costs SE Asian construction and towing to Tassie Shoal Avoids coastal construction and environmental issues Avoids floating vessel design complexities Vessel motion issues Swivel/turret issues 11 MEO Australia Limited

12 TSMP Design uses Proven Technology Davy Process Technology & Concrete Gravity Base Structure Process plant based on Davy Process Technology plants + = Enhanced stick-build on deck in casting basin Concrete Gravity Base structure Transported as a barge to Tassie Shoal Installed by ballasting in 14m water Becomes artificial island 20 days methanol storage 12 MEO Australia Limited

13 TSMP Topsides Key Features Davy Process Technology SMR Process Optimal design to convert high CO 2 feed gas to synthesis gas 13 MEO Australia Limited

14 Accommodation and Control Platform (ACP) Separated from plant and storage Bridge connection to production/processing plant 14 MEO Australia Limited

15 TSMP Operations & Logistics Onshore Base in Darwin, NW Australia Capital City support facilities Existing offshore support base, under expansion Logistics support: supply base, supply & crew boats, helicopters Darwin, Australia TSMP primarily controlled on-site via Accommodation & Control Platform Secondary control via a Darwin on-shore base Monitoring offshore operations, administration and warehousing facilities 15 MEO Australia Limited

16 TSMP Casting Basin Site Selection South East Asia Focus Potential construction sites inspected Development costs estimated Key Criteria: Area Ground conditions Channel depth Fabrication facilities Workforce skills Tow distance and risks 16 MEO Australia Limited

17 Modular Commercial Structure Current focus on TSMP 1 Upstream JV(s) Midstream JV(s) Downstream Offtaker(s) Methanol SPA(s) Current Focus Area JV or GSA Supply LNG SPA(s) 17 MEO Australia Limited

18 Commercial Status Preliminary discussions held with key methanol market participants Expressions of Interest received for 8.3MTA methanol offtake from TSMP 1 (capacity 1.75MTA) Forward Plans Continue exploring synergies between TSMP 1 offtake sale to Foundation Buyers and midstream/upstream investment Mature commercial framework 18 MEO Australia Limited

19 Overall. Tassie Shoal Methanol Projects have distinct competitive advantages Uses CO 2 in SMR process Centrally located Shallow water design reduces costs Construct in low cost SE Asian location Environmental Approvals in place Expansion potential offers benefits for foundation investors 19 MEO Australia Limited

20 Thank you for your interest For more information. 20 MEO Australia Limited