Focus - Deliver - Evolve

Macquarie Conference

4 May 2021

Oil Search Limited - ARBN 055 079 868 - ASX: OSH - PNGX: OSH - US ADR: OISHY

www.oilsearch.com

Disclaimer

This presentation is in summary form and does not purport to be complete. It should be read in conjunction with Oil Search's periodic reporting including but not limited to its Quarterly Reports, Half Year Report, Annual Report and other ASX announcements.

This presentation contains forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of Oil Search. Actual outcomes may differ materially from those expressed in such statements, due to a variety of factors, including: oil and gas prices, the extent and duration of the impact of current market conditions including but not limited to currency fluctuations, the demand for oil, the impact of Covid-19, overall global economic and business conditions impacting our business; development and use of new technology; drilling results, field performance, the timing of field development, reserves depletion, progress on gas commercialisation; the actions of third parties including our competitors, partners, contractors, subcontractors, and others; regulatory and governmental issues and approvals; and other factors discussed elsewhere in this presentation, and also under the "Material business risks" section (and elsewhere) in our Annual Report.

While every effort is made to provide accurate and complete information, Oil Search 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 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.

2

2020 - a year of absolute Focus

Protecting operations, building resilience, rightsizing and preparing for growth

PNG

LNG

Pikka

Corporate

operations

expansion

development

  • Enhanced liquidity and refinanced corporate debt
  • Rightsized organisation and held a major strategic review
  • Enhanced our commitment to sustainability
  • Committed to capital discipline and enhancing balance sheet strength
  • Declared final dividend indicating increased confidence
  • Protected our people and operations through strict testing, quarantine and family support
  • Strongest safety record of 0.78 TRIFR since taking operatorship
  • Record PNG LNG production of 8.8MTPA
  • Unit production cost of US$9.97 per barrel, down US$2.50 per barrel
  • Stopped low value, long dated and non-key activities
  • Increasing alignment for Papua LNG two-train development
  • Fiscal Stability Agreement signed and PRL 15 licence extension granted
  • Targeting FEED entry in 2022 and 1st gas 2027
  • P'nyang1 discussions ongoing with joint venture and PNG Government
  • 33% 2C resource upgrade to 968mmbbl2
  • Successful civils program
  • Halved development costs and lowered breakeven costs
  • Pikka Phase 1 FEED entry based on modular design targeting FID in Q4 20213
  • Joint venture equity selldown program underway
  • Progressing discussions with lenders

(1)

PRL3

(3) Subject to market conditions

3

(2)

Gross, see ASX announcement from 19th November 2020 titled "Alaska Update". Oil Search is not aware of any new

information or data that materially affects the information included in its 2020 Reserves and Resources Statement.

Deliver: LNG Expansion

PNG ideally located and positioned to support growing Asian demand

  • High priority within supermajor portfolios
    • "And for Papua New Guinea, that's clear that considering the Mozambique LNG project situation, we'll give priority to Cameron LNG expansion and to Papua LNG project" (Total SA CFO, Apr-21)
  • Strong demand outlook
    • Net zero ambitions by large North Asian economies will likely drive material LNG demand growth
    • Increasing signs of global economic strengthening and commodity demand recovery
    • Liquefaction outages in the face of demand surge in 4Q20 reinforced need for regional supply

MT

LNG Demand Outlook1

600

Papua First Gas

500

target

400

300

200

2015

2020

2025

2030

2035

Non-US Supply

US Supply

Qatar Exp. Ph1

Demand

Pre-FID LNG Projects - Breakeven2

  • Papua LNG has advantaged supply
    • Low cost of supply and experienced LNG operator(s)
    • Ideally positioned with proximity to market, away from pinch-points
    • Asian buyers continue to seek high heating value LNG
  • Oil Search to contract full equity share for FID

US$/mmBtu

Papua

Russia

Asia

LNG

ME&A

Australia

(1)

Oil Search interpretation of IHS Markit data

4

(2)

Breakeven LNG price including 10% WACC. Source: Woodmac Q1 2021 Pre-FID upstream project tracker

DELIVER lowest breakeven Pikka Oil Development

Low breakeven, high ROR, low GHG intensity with expansion funded from production

Where We Were

Where We Are

Full Field Scenario C:

Phase 1: NDB Through NPF:

• 3 drill sites, sealift NPF

• Single drill site, truckable NPF

•

CAPEX >$6Bn

•

CAPEX ~$3Bn

•

~750mmbbl,

• Target 400mmbbl,(full field potential of 750mmbbl captured in Ph.2)

•

106 producer/injectors

•

Phase 1 - 43 producer/injectors

•

120,000 bopd (nameplate)

• 80,000 bopd (future add-ons via 40,000bopd modules)

• BCoS: >$45 US$/bbl Brent

• BCoS: <$40 US$/bbl Brent

• Control on pace of growth and investment

PIKKA PHASE 1: BOD UPDATE DECEMBER 2020

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Oil Search Limited published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 00:08:03 UTC.