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1 O I L S E A R C H L I M I T E D 1 Changing Face of Oil Search PNG LNG Project over 85% complete (end April), material 20+ year cash flow stream approaching LNG expansion opportunities being matured, with new resources available New gas play confirmed in Gulf of Papua, with gas discovery at Flinders and further wells to come Oil discovery at Mananda 6, testing underway. Results to date encouraging for trend, detailed development optimisation studies taking place Taza oil discovery in Kurdistan moving to appraisal phase, with extended well test being planned Active drilling and development programme still to come through 2013 and

2 Core Strategies Have Delivered Steady Share Price Appreciation More to Come Share price (A$) 8 7 Merger of Oil Search & Orogen Acquisition of Chevron Texaco s PNG assets Assume Operatorship Manage transition to PNG LNG Project PNG LNG FID Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 2 January June Operating Safely Is Our First Priority Brambles Wesfarmers Qantas Bendigo and Adelaide Bank Asciano CSR Boral Ridley Corp. Stockland Treasury Wine Est. AWE Leighton OZ Minerals Iluka Resources SP AusNet Fortescue Metals Fletcher Building James Hardie Transfield Origin Energy Boart Longyear UGL Incitec Pivot AGL Energy Downer EDI Monadelphous Lynas Corp. Transurban Santos BHP Billiton Woodside Newcrest Amcor Nufarm Caltex Oil Search Orica ResMed PanAust WorleyParsons Total Recordable Injury Frequency Rate Data for 2012 per Million Hours Worked (All Reported Data) Source: Company data, Citi Investment Research and Analysis Note: TRIFR Total Recordable Injury Frequency Rate per million hours worked Jun YE Dec YE Mar/Sep YE 4

3 Key Oil and Gas Fields, PNG PPL260 Angore Madang 6 S 7 S 8 S 9 S P nyang Juha Proposed Juha Facility Kiunga PRL3 Hides Gas Conditioning Plant & Komo Airfield 260 PRL02 PDL9 Mananda 5 Mananda 6 PNG LNG Project Gas Resources PNG LNG Project New Facilities Non PNG LNG Gas Resources Exploration Gas Resources PDL7 PDL8 SE Mananda Kimu Hides PDL1 233 PPL219 Porgora Gold Mine PRL11 PPL277 PDL6 PDL5 PRL08 Moran 233 PDL2 SE Gobe Kopi Scraper Station Daru Wabag Mendi Agogo PDL4 PDL3 PRL09 Moro Airport Kutubu PRL14 PPL276 Mt. Hagen Gobe Main PPL277 Barikewa PPL Uramu Kidukidu PRL10 Kumul Terminal PPL385 PPL234 PPL244 Kundiawa PPL Kopi Wharf Goroka Elk/Antelope PPL PPL312 Kerema Hagana Flinders Lae LNG Facility Oil Field Gas Field Prospect Oil Pipeline PNG LNG Gas Pipeline OSH Facility PNG LNG Project Facility Major Road 100km 141 E 142 E Port Moresby 143 E 144 E 145 E 146 E 147 E 5 PNG LNG Project Overview Over 85% complete Project remains on track for first LNG sales in 2014 Have passed peak for logistics and workforce Revised budget of US$19.0 bn Juha Gas Field 60km x 14 gas line Hides Gas Field Angore Gas Field 292 km x 32 gas pipeline onshore Juha Production Facility 250 Mcfd 60km x 8 liquids line Hides Gas Conditioning Plant 960 Mcfd 109 km x 8 condensate line Agogo/Moran* Kutubu* Gobe* *Existing Facilities Existing 270 km x 20 crude oil export line LNG Facility 6.9 MTPA 407 km x 34 subsea gas pipeline Gulf of Papua Port Moresby 6

4 PNG LNG Plant Site Preparations underway for receipt of commissioning gas LNG Facility PNG LNG Trains 1&2 Storage tank Jetty 7 PNG LNG Offshore and Onshore Pipelines Offshore pipelay Offshore pipeline completed and hydrotested Onshore pipeline clearing, laying and welding underway between Kutubu and Hides Onshore Pipeline Offshore Pipeline Pipeline Transportation 8

5 Associated Gas/PL 2 Life Extension Associated Gas (oil fields) readying for supply of commissioning gas in 2013 Kutubu Kumul TEG Dehydration Unit commissioning at CPF Kumul Marine Terminal New CALM Buoy at Kumul 9 PNG LNG Project - Upstream Hides Gas Conditioning Plant (HGCP) HGCP April 2013 HGCP foundations completed and erection of structural steel substantially complete 10

6 PNG LNG Project - Drilling PDL 1/7 Hides Field 8 New Production Wells Hides GTE Plant Hides Nogoli Camp PDL 8 Angore Field 2 New Wells Hides Gas Conditioning Plant 10km Komo Airfield Two new build rigs (Rigs 702 and 703) both operational Rig 702 at well pad B development well B1 complete, B2 drilling ahead Rig 703 at well pad C top hole section of both wells complete, drilling ahead on C1 Access roads and wellpad construction complete 11 PNG LNG Project Timetable Unchanged» Continued early works» Detailed design» Order long leads and place purchase orders» Open supply routes» Contractor mobilisation» Commence AG construction» Continue onshore pipe lay» Complete offshore pipe lay» Start Hides plant installation» Start Hides drilling» Complete key AG items First Gas from Train 1, then Train Financial Close» Ongoing procurement and mobilisation» Airfield construction» Drilling mobilisation» Start offshore pipeline construction» Onshore line clearing and laying» Start LNG equipment installation» Complete pipe lay» Ongoing drilling» Construction of HGCP» Commission LNG plant with Kutubu gas 12

7 Gas Growth - PNG Highlands 6 S PRL3 P nyang Juha North Juha Hides Gas Conditioning Plant & Komo Airfield PPL PDL9 PRL02 PDL1 PDL7 Hides Wabag Agogo PDL8 PRL11 PDL6 PPL233 PPL219 PDL2 Angore Moran PDL5 Mendi PPL233 PPL277 Kutubu PNG LNG Project Gas Resources Non PNG LNG Gas Resources PDL4 Gobe Main Mt. Hagen SE Gobe PPL277 Comprehensive exploration and appraisal in PNG Highlands, to fully understand gas resource picture Significant progress in 2012 with discovery of gas at P nyang South Drilling ongoing at Hides PRL14 7 S Kimu PRL08 PDL3 Barikewa PRL09 Iehi/Cobra Seismic underway at P nyang and Juha North 100km 8 S 142 E 143 E 144 E Kumul Terminal 13 P nyang Gas Field PRL 3 JV (OSH 38.5%, ExxonMobil 49.0%, JX Nippon 12.5%) concept selection studies expected to be finalised in 2013 Oil Search estimates total 2C gas resources in P nyang field of tcf Additional seismic in PRL 3 underway, to support potential development To maintain PRL 3, production development licence application must be submitted to PNG Government in km 6 S Juha P nyang Hides Angore Moran Kutubu 100km Agogo Gobe 8 S 142 E 144 E 14

8 7 S 8 S PPL277 PPL Kumul Terminal PRL10 Triceratops PPL312 PPL InterOil ExxonMobil Proposed Development of PRL 15 PPL 50km PRL 15 Elk / Antelope Kerema 145 E 146 E InterOil and JV partner, Pacific LNG Group, have entered exclusive negotiations with ExxonMobil on development of PRL 15 PRL 15 comprises Elk and Antelope fields in PNG Gulf Province Any agreement is subject to Government approval Items under consideration include: InterOil and Pacific LNG selling ExxonMobil interest in PRL 15 sufficient to supply gas to develop additional LNG train at Konebada (PNG LNG) site ExxonMobil will fund drilling of additional delineation wells in Elk and Antelope fields, followed by recertification of resource 15 Gas discovered in Flinders 1 in PPL 244 (OSH 40%, Total 40%, Nippon 20%), first well in new OSH-operated offshore PNG Gulf programme 5-10 metre gas column at top of thick, high net:gross, Pliocene age turbidite sandstone package, with substantial updip potential Results de-risk key uncertainties of offshore Gulf play: Gulf of Papua Flinders 1 gas discovery 7 S 8 S 9 S D Seismic Region 144 E Uramu Kumul Terminal Triceratpps 2D Seismic 2011 Lines Elk/Antelope Kerema D Seismic Regions Flinders LNG Facility 145 E 146 E 100km Port Moresby Flinders 1 Hagana 1 Good quality reservoir Hydrocarbon charge present Pleistocene Pliocene Miocene Flinders Hagana Jurassic & Cretaceous Triassic & older 50km Pasca Ridge 16

9 Offshore Gulf Forward Programme Flinders result will be used to recalibrate seismic data and update Gulf prospect portfolio, with over 30 opportunities identified across multiple play types Kidukidu Prospect Pleistocene Kidukidu 1 Flinders Gas Discovery Hagana 1 Hagana Prospect Second well, Hagana 1 in PPL 244, recently commenced drilling. Stacked objectives, mean prospective resource 1.1 tcf Possible third well, Kidukidu, in PPL 244/PPL 385. Mean prospective resource of 1.3 tcf Pliocene Miocene Jurassic & Cretaceous Triassic & older 50km Pasca Ridge 17 Onshore Gulf of Papua 7 S PPL277 PPL 2D Seismic 2013 Lines PRL10 Triceratops PPL Elk/Antelope Seismic programme in PPL underway as part of Oil Search farm-in option, covering potential extension of Triceratops discovery Follows acquisition of gravity gradiometry data Subject to results of seismic, OSH will decide whether to take up equity and drill well PPL 8 S PPL312 50km Kumul Terminal 145 E 146 E 18

10 Adding Value to PNG s Oil Fields Since Oil Search assumed operatorship of all PNG s producing oil fields in 2003: Reserves increased by 100 million barrels to 550 million barrels (+22%) Kutubu previously expected to shut down by Life of oil fields extended by 30+ years 80,000 70,000 Kutubu SEG Wedge Moran Usano Kutubu Moran Agogo Moran Oil Rate (bopd) For personal use only 60,000 50,000 40,000 30,000 Oil Search takes over operatorship 20,000 10,000 Decline under previous operator Oil Search Added Value operatorship Production Outlook (ex-png LNG) Active workover and development drilling programme planned for 2013 and 2014, designed to minimise production decline profile Expect 2013 production to be similar to Guidance range of mmboe. Production out to first LNG in 2014 also expected to remain largely flat Focus on getting ready to deliver commissioning gas from Associated Gas fields into PNG LNG Project Delivery of commissioning gas will not impact production performance 6 S 7 S PRL 02 Juha Net Production (mmboe) PDL PDL1 PDL 7 Mananda 6 PPL260 Juha North PDL7 SE Mananda Kimu PRL 11 PDL8 PRL 11 PPL233 PPL219 PRL08 Angore PDL2 PDL6 PPL277 PDL5 PPL233 (Forecast) Iehi PDL 4 Barikewa Forecast Hides GTE SE Mananda PRL 14 PDL PDL 3 4 PRL09 Cobra 143 E 144 E 20

11 Mananda 6 Oil Discovery PPL 219, PNG Mananda 6 appraisal well, located ~10km from SE Mananda in PPL 219 (OSH 71.25%, JX Nippon 28.75%) discovered gross oil column of ~18 metres in Toro A and ~40 metres in Imburu A and Digimu sandstones Preliminary indications suggest series of compartments along Mananda Ridge, with potential for significant resources Test on Digimu underway to determine flow rates and possible presence of gas cap Subject to final testing and evaluation, aim to apply for development licence 2H13, FID 2014, with field to be tied-in to SE Mananda facilities. First oil targeted for 2015/16 Mananda 5 NE Mananda 6 Mananda 6 Darai Ieru SW 5km 21 MENA Exploration Existing Middle East/North Africa licences focused on exploration opportunities that have material oil potential Long term strategy is to leverage existing strong relationships and skills base to develop international portfolio. Pace dependent on availability of suitable value-add opportunities, PNG capital commitments 22

12 Taza 1 Oil Discovery, Taza PSC, Kurdistan Oil discovered in Taza 1 well (OSH 60%, Total 20%, KRG 20% back-in), with continuous shows over 250 metre section, covering three reservoir intervals Jeribe, Dhiban and Euphrates Test of 150 metre open hole section below Jeribe underway. Flow rates of >4,000 bbls of fluid per day achieved, including 1,100 bbls per day of oil. Subsequent test flowed 800 bopd oil, 400 bpd water, trending to zero water Pre-drill estimate of potential resource unchanged at mmbbls Follow-up drilling programme in 2H13, to further appraise Jeribe, Dhiban and Euphrates Formations and drill Cretaceous Shiranish and possible deeper targets Jambur Oil discovery 1953 by IOC. Reserves in excess of 1BBL Export via Kirkuk Euphrates & Qamchuqa Kor Mor 300mscfd gas/condensate to Local power stations Taza 1 Oil Discovery by IOC Tested max 2180bopd from Euphrates And 700bopd Shiranish Taza Kurdamir Gas condensate discovery Kirkuk & Jaddala Shiranish Shakal Oil discovery. Tested 2700bopd from Jaddala Chia Surkh Tested 11,950 bopd from Oligo-Miocene Open hole test of lower zone of Taza 1 well, Kurdistan Sarqala Gas/Oil discovery 9000bopd from Jeribe Qamar Oil Discovery by IOC 1980 Tested 2000bopd from Jeribe Euphrates 3km 23 Strong Financial Position Cash (US$m) 1,289 1,265 1,047 Strong balance sheet, able to fund remaining equity share of PNG LNG Project as well as active exploration and development programme US$3.06 billion drawn down under PNG LNG project finance facility Corporate Facility (US$m) PNG LNG 2012 cost increase : To be funded 70:30, debt:equity. Discussions progressing well to secure US$1.5bn supplemental debt available under existing project finance agreement Large component of exploration spend is discretionary, ability to reduce if necessary Capacity to raise additional debt funding at corporate level, should need arise 24

13 Outlook Progressive delivery of PNG LNG, in line with schedule and revised budget. Value steadily increases as cashflows get nearer Progress on LNG expansion plans, underpinned by P nyang resource, augmented by other Highlands gas Potential third party gas could result in further LNG expansion Ongoing drilling in Gulf of Papua to follow up Flinders discovery Test of Mananda oil discovery and possible FID in 2014 Appraisal of Taza oil discovery 2013 &14 oil production expected to be similar to 2012, with natural decline mitigated by active workover and drilling programme 25 Production Outlook (excl. possible LNG expansion, Mananda) Net Production (mmboe) PNG LNG (T1+T2) Base oil production Hides GTE SE Mananda SE Gobe Gobe Main Moran Kutubu (Forecast) 26

14 O I L S E A R C H L I M I T E D 27 Appendix 1. Investment Outlook 2,500 US$m Other PP&E 2013 Guidance US$ bn 2,000 1,500 Production PNG LNG Exploration & Evaluation 1,364 1,568 1,861 US$20 30m US$ m 1,000 US1,500 1,600m US$ m F 28

15 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. 29