2018 FULL YEAR

RESULTS

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.

2018 FULL YEAR RESULTS 19 FEBRUARY 2019

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2018 HIGHLIGHTS

  • 2018 was one of the most challenging years in OSH's history: - 1H dominated by Highlands earthquake in February and subsequent activities to restore operations and deliver relief to impacted communities

-

2H strong recovery, with PNG LNG achieving record half-year production rate of 8.8 MTPA and progressive recovery in operated production

  • 13% increase in NPAT to US$341 million, despite 17% lower production

  • Strong capital management: - Liquidity at end 2018 of US$1.5 billion

  • 2018 final dividend of 8.5 US cents, taking full year dividend to 10.5 US cents (47% pay-out ratio)

  • Significant growth in Reserves and Resources:

    - 2P and 2C liquids Reserves and Resources more than doubled to 253.5 mmbbl, with gas up 6% to 6.7 tcf

-

Underscores tangible growth developments

Oil Search won the 2018 Platts Global Energy Award for Corporate Social Responsibility and the PNG Chamber of Mines and Petroleum Outstanding Humanitarian Initiative Award following our response to the 2018 earthquake.

The UN estimates that Oil Search delivered ~80% of total food supplies to affected areas in the first four weeks following the earthquake

2018 HIGHLIGHTS (CONT.)

  • Good progress on LNG development in PNG:

    - Papua LNG and downstream pre-FEED studies matured and Memorandum of Understanding signed between Papua LNG and PNG Government in November

  • Muruk 2 reached target Toro in January 2019. Preliminary indications of likely hydrocarbons - wireline logging and pressure testing underway

  • Material upside in oil fields identified, with potential to add ~30mmbbl (net) to reserves

  • Significant progress in Alaska after assuming operatorship in March 2018:

    Pikka B well located on the Alaska North Slope

    • - 2018/19 appraisal drilling programme underway, with potential for material resource upgrade

    • - Initial results encouraging

    • - Discussions underway with several parties on potential exercise of Armstrong Option and partial divestment

IMPROVED SAFETY AND ENVIRONMENTAL PERFORMANCE

TOTAL RECORDABLE INCIDENT RATE (TRIR)

Permillionhours worked

3

2.6

2

1

OSHIOGP

0

  • Zero Tier 1 and three Tier 2 process

2012

2013

2014

LOST TIME INJURY FREQUENCY

Permillionhours worked

0.75 0.59

0.50

2015

2016

2017

2018

0.25

0.00

0.19

  • TRIR of 1.6 per million hours worked: - No injuries to OSH staff and contractors due to earthquake and aftershocks

    - PNG operations celebrated TRI-free year in November

  • LTI improved despite challenging work activities conducted during 2018

    safety events - none directly related to earthquake

    • No major environmental incidents: - No loss of hydrocarbon containment as a result of earthquake

      2013

      2014

      2015

      2016

      2017

      2018

    • Further focus on driving improved safety and environmental performance, together with social programmes to support operating stability

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Oil Search Limited published this content on 19 February 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 February 2019 00:02:06 UTC