PROSPECTS AND INVESTMENT OPPORTUNITIES IN MALAYSIA

TALK PROFILE
Malaysia and PETRONAS New play discoveries and opportunities Data review and petroleum

arrangements

NAPE, Houston, USA 5-6th 2009

MALAYSIA IN PERSPECTIVE MALAYSIA IN PERSPECTIVE

CHINA

MYANMAR

LAOS

THAILAND CAMBODIA VIETNAM PHILIPPINES

NAPE 2006 MALAYSIA

MALAYSIA
Singapore INDONESIA

Located in the heart of South East Asia. It is multicultural population of about 24 million. The country is politically stable with well developed infrastructures. Comprises Peninsular Malaysia and two states of Sabah & Sarawak in Borneo with total land area of 330,000 sq. km.

PETRONAS is an integrated oil and gas company, operating in more than 30 countries world wide

Logistics & Maritime Business

Oil and gas exploration and production

Refining

Petrochemical Business

Marketing

Gas Business

Domestic E&P: Sustained investment and activities with a total of USD 22.4bil. spent for E&P sector in FY07/08
Malaysia Exploration Acreage

Sabah Peninsular Malaysia Sarawak

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Exxon Mobil Shell PETRONAS Carigali Murphy Oil ConocoPhillips TOTAL Nippon Oil Amerada Hess Talisman Newfield BHP Billiton PCPP Petrofac PIDC Kufpec Lundin

Number of PSCs in operations : 30 PSC Blocks under exploration : 41 Open Blocks : 43 ( Including 7 deepwater blocks) Producing fields : 61 oil fields and 27 gas fields Production (2008): Oil 552.7 kb/d Gas 6.7 bscf/d Condensate 134k b/d

MALAYSIAN BASINS

Sabah Basin Malay Basin Strait of Melaka Basin

Sandakan Basin

Penyu Basin

Sarawak Basin Tarakan Basin

There are 7 Tertiary Sedimentary Basins Sediment Thickness of > 1000m

New Exploration Play-types resulted in new discoveries

E K D F

M S

O
H B L C R G I

J P N

A Q

Proven Successful Play-types A Fractured Basement in Malay Basin (Anding Utara) B Turbidite Play in Central Luconia (Kumang) C Deep-seated Pinnacle Reef Play in Central Luconia (Kanowit, PC4, Anjung) D Malay Basin Centre HPHT Gas Play (Guling Deep) E Malay Basin Centre Oil Play (Sepat Deep) F Malay Basin Synrift Play (Kecubung) G Sarawak Basin Synrift Play (KT) H DW Sarawak Fault Block Play (Talang) I DW Sabah Turbidite Play (Kikeh, Gumusut,) I DW Sabah Foldbelt Play (Rotan, Biris)

On going studies K Malay Basin Channel Play L Channel play in Balingian Province M Turbidite play in Rajang Delta N Turbidite Play in Sandakan Basin O Synrift Play in UDW Sabah P Turbidite Play in Sabah Shelf Q - Fractured Basement in Penyu Basin R - HPHT Play in Baram Delta S - Low CO2 Gas Play in Rajang Delta

Exploration Focus Blocks FY09/10

PM325

SK317 DW2D

PM326 SK301

PM316 SK318 SB306

Focal Blocks Open Blocks

PENINSULAR MALAYSIA BLOCK PM325 & PM326

Gas Prone Area Established petroleum system production province

NE-SW 2D seismic regional cross section . Our Basin Study team already identified new play types such as synrift play, Fractured basement play and deeper play basin centre to enhance the prospectivity of the area.

A new deeper exploration target that was identified by PMU basin study opens new frontier for exploration in this Matured basin. In this case, the lead is in the older sequences below the Bergading Deep-1 well.

SARAWAK BARAM DELTA & CENTRAL LUCONIA PROVINCE BLOCK SK317 & SK318
SK317 - Baram Delta Province
Established Petroleum System Proven Oil & Gas Tertiary Delta Province

SK318 - Central Luconia Province

Proven Gas Play for Mid to Late Miocene Carbonate Province

Central Luconia Carbonate Play

Leads & Prospects Map for SK317 Remaining Cycle IV/V Carbonate in SK318 for exploration

SARAWAK DEEPWATER BLOCK 2D

DW 2D North Luconia Province

G10 Analogue Line 96MSK141

Downflank G10
Carbonate Platform

Hem

Play-types that are available in Deep Water Block 2D. The main potential objective will be the pre-Mid-Miocene Unconformity (MMU) section
ipe lag ite

Hemipelagite
Base-of-Slope Facies MMU Equiv. to Carbonates

MMU Pre-MMU Oligo-Miocene

Talang-1

MMU

MMU From the drilling result, Talang-1 discovered some gas in the Middle Miocene (pre MMU objective) section.

SABAH BLOCK SB306

SB306 SE Sabah Basin
SW NE

Platform carbonate

Pinnacle carbonate

3.5km

Potential untested Carbonate Play

A sequence stratigraphy study has been conducted by PETRONAS to establish a regional understanding of the area. Potential plays were identified from the study

NE

SW

SW

NE

Potential untested Turbidites Play

Leads & Prospects Map for SB306

DATA REVIEW & BLOCK AWARD PROCESS

EOIM
Establish Contact Courtesy visit and review of current opportunities Conditional Award

Data Review

Bidding

Negotiation

PSC Signing

Companies established contact with PMU and assessed for interest

Data are available for review upon request and companies are requested to sign a confidentiality agreement. Companies to submit report on findings and interest within 3 month

Short listed companies are invited for a closed tender process for selected blocks

PSC negotiation and award to successful company

PRODUCTION SHARING CONTRACT

Companies that are interested to explore and exploit hydrocarbon resources in Malaysia are required to enter into a PSC with PETRONAS Each PSC obligates the PSC Contractor to provide all the financing and bear all the risk of exploration, development and production activities in exchange for a share of the total production 3 Types of Exploration PSC. 1. R/C PSC below 200m water depth 2. Deepwater PSC 200m to 1000m water depth 3. Ultra Deepwater PSC beyond 1000m

Contact: Petroleum Resource Exploration Petroleum Management Unit (PMU) PRTRONAS Level 22, Tower 2, PETRONAS Twin Towers KLCC, 50088 Kuala Lumpur 1. Mr. Effendy Cheng Abdullah Senior General Manager Tel: +603 - 2331 4678 Fax: +603 - 2331 4004 E-mail : effendy@petronas.com.my Mr. Robert Wong General Manager Basin Assessment & Promotion Tel: +603 - 2331 3135 Fax: +603 - 2331 3238 E-mail : wonghf@petronas.com.my Ms. Salina Safiullah Manager Block Promotion & Marketing Tel: +603 - 2331 1593 Fax: +603 - 2331 3238 E-mail : salinaf@petronas.com.my

Data rooms are open th-13th 9th-13th Feb 9am-5pm 9am-5pm Schlumberger Breakthrough Performance Centre 5599, San Felipe, Suite 1100 Houston, TX 77056

2.

We are at booth 625

3.

THANK YOU