Oil Search : Strategy Update and Investor Briefing 2020

ASX Announcement

19 November 2020

ASX: OSH | PNGX: OSH | ADR: OISHY

STRATEGY UPDATE AND INVESTOR BRIEFING 2020

Oil Search has responded to a uniquely challenging backdrop in 2020 by enhancing its resilience through sustained cost improvements and a focus on commercialising growth at a highly competitive breakeven cost of supply. Today, Oil Search announces a refreshed ambition to deliver an exciting future built on a proud heritage and clarity on its strategy to meet that ambition.

At the Company's investor briefing, Managing Director, Dr Keiran Wulff, said:

"The challenges posed by the pandemic and oil price downturn, combined with global trends and societal expectations, have been the catalyst for us to review our past performance and make sustained improvements to position Oil Search for long term success.

We now have a lower cost base, are more resilient and are in a strong position to commercialise our world class resource base. Most importantly, these changes have been achieved while delivering a record safety performance and stable production, as well as enhancing employee engagement and maintaining our commitment to our communities.

Together with the structural changes in our industry as the energy transition builds pace, these challenges have highlighted our need to focus on low cost projects, measurable action on sustainability and disciplined capital management. Oil Search has a very strong oil and gas resource base and our focus is to commercialise our resources at the lowest possible cost, aligned with societal and investor expectations. We firmly believe oil and gas produced safely, responsibly and at low cost will continue to play a critical role during the transition to a renewable energy future.

Today we are outlining our renewed purpose and ambition. We will deliver low cost, low greenhouse gas (GHG) intensity, high value energy that meets society's needs with the ambition of being the preferred energy company for all stakeholders.

Our strategy to meet this ambition comprises three disciplined phases:

• We will Focus our business and resources on the assets that matter, driving sustained low costs and simplification of our PNG operations;
• We will Deliver our world class resources, starting with commercialising the Pikka development at a breakeven cost of supply of less than US$40/bbl and prioritising the delivery of Papua LNG; and
• We will Evolve by focusing on maximising shareholder returns and free cashflow, achieving full potential from Alaska and considering targeted complementary energy investments.

Oil Search Limited	Australian Office	oilsearch.com	1
Incorporated in Papua New Guinea	1 Bligh Street, Sydney NSW 2000, Australia	P. [phone]
ARBN 055 079 868	GPO Box 2442, Sydney NSW 2001, Australia	F. [phone]

Critically, sustainability will be embedded in everything we do, building on our strong heritage of commitment to community to include new targets for operated emissions intensity, minimising our environmental footprint and ensuring our developments and operations are aligned with our commitment to be the preferred energy company for all stakeholders. We are now aiming to reduce operated GHG emissions intensity by in excess of 30% by 2030.

We have learned some hard lessons this year. We are focused on delivering near term operating cash flow and strong returns underpinned by resilient operations and disciplined capital management.

We have a clear hierarchy for allocating capital, prioritising sustaining capital and a strong, flexible balance sheet. We have stress tested our portfolio, instilled a disciplined approach to investment decisions and are well progressed in pursuing multiple options to ensure funding readiness for delivering Pikka and Papua LNG.

The quality of our portfolio and the discipline being applied will underpin the delivery of our strategy. We are excited by the future and look forward to providing regular updates on our progress against clearly stated milestones. We are committed to delivering major production growth, lower breakeven costs, lower emissions intensity and a material increase in free cash flow over the next decade."

To access the live webcast of the Investor Briefing, please follow the link that can be found at www.oilsearch.com. The webcast will commence at 09:00 AEDT.

A copy of Oil Search's Investor Briefing 2020 is attached.

Contacts:

Investors Ann Diamant

Senior Vice President - Investor Relations [phone]

[phone] [e-mail]

Media Matthew Park

Vice President - Communications and Media [phone]

[phone] [e-mail]

This ASX announcement was authorised for release by Oil Search's Disclosure Committee.

2

ABSOLUTE

Investor Briefing

19 November 2020

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

www.oilsearch.com

Disclaimer and risks

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 well work-overs and 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.

BCC

Graphics request - inves ... tion 6

2