OIL SEARCH

COMPANY

UPDATE

MACQUARIE AUSTRALIA CONFERENCE - APRIL 2019

OIL SEARCH LIMITED | ARBN 055 079 868 | ASX: OSH | POMSoX: OSH | US ADR: OISHY

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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.

OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 2

SIGNIFICANT PROGRESS MADE IN 2018/19 ON VALUE-ADDING INITIATIVES

❖Landmark Papua LNG Gas Agreement signed in April 2019:

-Commercial agreements close to completion

-P'nyang Gas Agreement expected to be finalised 2Q19, enabling downstream FEED to commence

❖Inaugural drilling campaign in Alaska successfully completed:

-Material upgrade in 2C oil resource expected

-Expect to enter FEED for first phase Pikka Unit development in 2H19

-Progressing opportunities to optimise development

-Work ongoing to maximise value of Armstrong Option through exercising and partial divestment, at appropriate time

❖Gas encountered at Muruk 2. Data indicates reservoir continuity from Muruk 1 ST3

❖Strong liquidity position of US$1.5bn at end March 2019 providing funds for growth project investment

OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 3

LANDMARK PAPUA LNG GAS

AGREEMENT SIGNED IN APRIL 2019

❖Significant step forward for Papua LNG Project, following Nov 2018 Memorandum of Understanding

❖Fair split of expected Project returns between State, Project participants and other stakeholders:

-5% Domestic Market Obligation

-New production levy

-Deferred mechanism for State's payment of past costs

-National Content plan to support local workforce development

❖Upstream FEED-related activities on Papua LNG have commenced

❖Commercial agreements governing integration of Papua LNG and PNG LNG nearing completion

❖P'nyang Gas Agreement expected to be finalised 2Q19, enabling downstream FEED entry in 2H19

OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 4

PROPOSED CONFIGURATION AT PNG LNG PLANT SITE

Condensate/

LNG Export

Naphtha

PNG LNG Onshore

Export

site boundary

LNG LNG

LNG

LIQUIDS LIQUIDS

Utilities,

power

1

2

3

4

5

generation

Train

Train

Train

Train

Train

New Utilities,

power

generation

Field Condensate

Elk-Antelope

AGRU

AGRU

AGRU

Gas

Elk-Antelope

PNG LNG

Gas

Existing PNG LNG facilities

P'nyang

Proposed new infrastructure

Note: AGRU - Acid Gas Removal

Unit

New LNG capacity underpinned by gas resources from Elk/Antelope (PRL 15), PNG LNG Project and P'nyang (PRL 3) fields

OIL SEARCH COMPANY UPDATE - APRIL 2019 | PAGE 5

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Oil Search Limited published this content on 30 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 30 April 2019 00:07:12 UTC