O I L S E A R C H L I M I T E D

Citi’s 4th Australian Investment Conference

24 October 2012 1

Oil Search Profile

Established in (PNG) in 1929 Market capitalisation ~US$10 billion Listed on ASX (Share Code OSH) and POMSOX, plus ADR programme (Share Code OISHY)

Tunis Operates all PNG’s currently Sulaymaniyah Tunisia producing oil and gas fields Iraq Dubai PNG Government is largest shareholder with 15%. Sana’a Yemen Exchangeable bond over shares issued to IPIC of Papua New Guinea Kutubu Ridge Camp 29% interest in PNG LNG Project, world scale LNG (Head Office) project operated by ExxonMobil Brisbane Exploration interests in PNG, Sydney Middle East/North Africa

2 Key Oil and Gas Fields, PNG

Madang PPL260 Angore

P’nyang PRL3 Porgora Wabag Gold Mine Juha 260 Hides Tagari PDL8 Proposed Juha PDL9 PRL11 Facility PDL1 Mt. Hagan Moran PPL277 6°S Kundiawa PRL02 PDL6 Goroka Kiunga PDL5 PDL7 233 Mendi 233 Agogo Hides Conditioning Plant PPL219 Moro Airport & Komo Airfield PDL2 Kutubu Mananda 5 PPL339 PRL14 SE Mananda Gobe Main Lae 338 339 PDL4 PDL3 339 7°S PRL09 338 Barikewa Elk/Antelope PRL08 338 Kimu 339 Kopi Wharf SE Gobe PPL338 PNG LNG Project Uramu 339 Gas Resources Kopi Scraper PPL339 Station PRL10 PNG LNG Project Oil Field New Facilities

PPL312 Kerema 339 339 8°S Gas Field Non PNG LNG Kumul Terminal Prospect PPL276 Gas Resources PPL234 Oil Pipeline Exploration

PNG LNG PPL385 Gas Resources Gas Pipeline PPL244 Flinders OSH Facility LNG Facility PNG LNG 9°S Project Facility Daru Major Road PRL01 Pandora 100km Port Moresby 141°E 142°E 143°E 144°E 145°E146°E 147°E 3

OSH in Significant Growth Phase

Top quartile performer for past six years Significant growth opportunities identified, capable of driving future value Largest ever development, appraisal and exploration programme now underway Series of catalysts over next 18 months, with drilling results progressively delivered Activities supported by steady production, strong cash flows and healthy balance sheet

4 Strategy Delivery Underway

Delivery of initiatives from 2010/11 Strategic Review on track: PNG LNG Project in full construction, on track for 2014 LNG sales Resource definition for LNG growth making good progress: P’nyang South discovery Hides drilling commenced Highlands exploration ongoing PNG Gulf drilling to commence early 2013 Oil upside in PNG and overseas being tested: Increased rig capacity in PNG, Mananda 6 to be drilled in 1Q13 Taza exploration well in Kurdistan underway, Semda in Tunisia to follow Active programmes to address operating risks Balance sheet strength, with optimisation of debt structure Success in initiatives should enable continued top quartile TSR performance

5

Strong Share Price Performance

• Significant share price growth: o Jan 2007 to date  +128.4% (ASX100 = -18.1%) o Jan 2012 to date  +22.4% (ASX100 = +13.1%) • Key future share price drivers: 9 Share price o PNG LNG progress o Train 3 expansion status (rebased to OSH) o Gulf of Papua exploration / resource aggregation 8 o Other international growth Oil Search 7

Brent 6

5 Santos 4 Beach 3 Woodside ASX 100 2

1 Jan‐07 Jul‐07 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Jul‐10 Jan‐11 Jul‐11 Jan‐12 Jul‐12

6 PNG LNG Project Overview

Wabag Juha Hides Angore Juha Facility Mt. Hagan

6°S Hides Gas Conditioning Plant Kundiawa Goroka Komo Airfield MoranMendi

Agogo Kutubu CPF

Kutubu Lae Gobe PF

7°S Gobe Main

Kopi Wharf

Onshore pipeline and Infrastructure

8°S Kerema Oil Field Kumul Terminal

Gas Field Oil Pipeline PNG LNG Gas Pipeline Offshore pipeline OSH Facility

PNG LNG 9°S Project Facility Daru Major Road LNG Facility 100km Port Moresby 142°E 143°E 144°E 145°E 146°E 7

PNG LNG Project Overview

6.6 MTPA, 2 train development, operated by ExxonMobil Over its 30-year life, PNG LNG expected to produce more than 9 tcf of gas and 200+ million barrels of associated liquids Initial Equities: ExxonMobil 33.2% Oil Search 29.0% National Petroleum Company of PNG (PNG Govt) 16.8% Santos 13.5% Nippon Oil 4.7% MRDC (PNG Landowners) 2.8% Fully contracted to Asian buyers, with continuing strong market interest (China) ~2.0 MTPA TEPCO (Japan) ~1.8 MTPA Osaka Gas (Japan) ~1.5 MTPA CPC (Taiwan) ~1.2 MTPA

8 PNG LNG Project Overview

Main EPC contractors: LNG Plant: Chiyoda/JGC Offshore Pipeline Saipem Hides Gas Plant CBI/Clough JV Onshore Pipeline Spiecapag Infrastructure McConnell Dowell/CCC JV Early Works Clough/Curtain JV Associated Gas (OSH only) Jacobs

Different labour environment to Australian LNG projects. Workforce of ~17,600 including 8,500 PNG nationals, plus many other different nationalities

First LNG sales on track for 2014, capital cost US$15.7 billion

9

Milestones achieved in 2012

Completed 407 kilometre offshore pipelay Commenced installation of pipe racks and vessels on both LNG process trains. Completed LNG tank shells and roofs and jetty trestle Onshore pipeline completed to Kutubu Good progress on Komo airfield, Antonov contract awarded HGCP process area handed over to construction contractor Hides development drilling commenced Completed first phase of PL 2 Life Extension Project Associated Gas (AG) Project: First gas drying unit (TEG) operational, performance testing of commissioning gas unit (CGU) Good progress towards Operator’s planned start-up window in 2014

10 Focus Areas for 2012/13

Komo and HGCP work-front productivity post recent bad weather/flooding Continued progress on onshore pipeline through challenging terrain and social environment Development drilling at Hides AG: Complete commissioning gas availability from Kutubu, finalise Gobe construction and Kumul works Following uneventful election process, engage with new Government on benefits delivery structures Progress towards Operator’s planned start-up window in 2014

11 Hides Development and Appraisal Drilling

PDL 1 – Hides Field 8 New Production Wells Drilling 2012+ GTE PL 1 Hides GTE Plant

Hides Nogoli Camp

PDL 8 – Angore Field 2 New Wells

PDL 7 – South Hides

Hides Gas Conditioning Plant Construction 2012/13

10km Komo Airstrip

PNG LNG development drilling programme commenced in July with Rig 702 Second rig, Rig 703, on site and expected to start drilling shortly Produced Water Disposal (PWD) well to be drilled in 2013. Will target water leg and provide important data on gas water contact and potential gas resource upside

12 Timetable

» Continue onshore » Continued early works pipe lay » Detailed design » Complete offshore » Order long leads and pipe lay place purchase orders » Start Hides plant » Open supply routes installation First Gas from » Contractor mobilisation » Start Hides drilling Train 1, » Commence AG » Complete key AG then Train 2 construction items

2010 2011 2012 2013 2014

» Ongoing procurement Financial » Complete pipe lay Close and mobilisation » Airfield construction » Ongoing drilling » Drilling mobilisation » Complete Hides plant » Start offshore pipeline » Commission LNG plant construction with Kutubu gas » Onshore line clearing and laying » Start LNG equipment installation

13 PNG LNG – Trains 1 & 2, Storage Tanks

14 PNG LNG – Installation of Amine Absorber, T2

15

PNG LNG – Export Jetty

16 PNG LNG – Offshore and Onshore Pipelines

Offshore pipeline (completed)

Onshore pipeline welding Onshore pipeline

17

PNG LNG - AG Projects

TEG Dehydration Unit installation

Upgrade of Kumul Marine Terminal

New CALM Buoy at Kumul

18 PNG LNG – Hides Gas Conditioning Plant

19

PNG LNG – Rig 702

20 PNG LNG – Komo Airfield

21 Growing PNG Gas Business: Key Strategic Priority

PPL260 PRL3 Juha North Hides Angore Wabag PNG LNG Project Pursuing two- Gas Resources 260 Juha PDL8 Tagari Non PNG LNG pronged LNG PDL9 PRL11 PDL1 Mt. Hagan Gas Resources P’nyang Moran PPL277 expansion strategy 6°S PRL02 PDL6 Exploration PDL7 233 PDL5 Mendi for PNG gas 233 Agogo Gas Resources Hides Gas PPL219 Conditioning Plant growth: & Komo Airfield Kutubu PDL2 Gobe Main PPL339 Potential PNG LNG PRL14 PNG LNG SE Gobe Elk/Antelope Expansion: Highlands 338 339 Expansion PDL4 PDL3 339 7°S /onshore resources PRL09 338 close to PNG LNG PRL08 338 339 infrastructure PPL338 Uramu 339 PNG Gulf of Papua PPL339 PRL10 LNG: Explore for gas to support new LNG PPL312 Kerema 339 8°S Kumul Terminal 2012 3D PPL276 hub. Other options Seismic Region PPL234 include floating LNG

PPL385 or integration with Gulf - potential PPL244 new LNG hub Flinders existing infrastructure 2011 3D Seismic 9°S Daru Regions PRL01 100km Pandora

142°E 143°E 144°E 145°E146°E 22 P’nyang South

P’nyang South 1 and ST1 discovered ~380 metre gas zone in southern fault block in PRL 3, with additional up-dip potential to >650 metres Result materially increases total estimated 2C gas resources in P’nyang field Potential key underpinning volume for LNG expansion, particularly together with gas reserves upside in AG fields Now in pre-FEED concept selection stage, preliminary studies on potential design concepts and costs underway PRL 3: ExxonMobil 49%, Oil Search 38.5%, JX Holdings 12.5%

Juha 100km Hides

P’nyang 6°S South Moran P’nyang 1X P’nyang 2X Angore Kutubu

Agogo Gobe P’nyang South 1 ST1

SW P’nyang 1X NE P’nyang South 1 & ST1 0 10km

144°E Toro

23

Highlands Drilling

First exploration well in programme, Trapia 1, unsuccessful, but other prospects and leads, on trend with Angore, remain prospective 2D seismic programme being undertaken to further mature Tagari and NW Angore leads: Phase 1 – 30 km completed 2Q12 Phase 2 – 120 km recently commenced Acquiring interest in adjacent licence, PPL 277, 50:50 with ExxonMobil (subject to Ministerial approval)

Juha Hides

Tagari NW Angore P’nyang Huria 6°S Moran Angore Kutubu

Agogo Trapia 1 Gobe

Tagari 2012 Seismic

10km 8°S 100km

142°E 144°E

24 Gulf of Papua Expansion Opportunity

OSH holds equity positions in nine licences (recent offer of 100km PPL 385) in PNG Gulf area Elk/Antelope Significant resource potential 2D Seismic identified in proven 2011 Lines hydrocarbon (gas & condensate) province: Uramu Major offshore 3D seismic survey Kerema 8°S acquired in 2011 & additional 3D Kumul Terminal

in 2012 2012 3D Seismic Over 30 opportunities across Region 2011 3D multiple play types Seismic Regions Range in size from 0.5 - 1.5 tcf Unexplored potential in large onshore licence areas adjoining 9°S InterOil exploration acreage Pandora

Stena Clyde semi sub due on-site LNG Facility early 2013 to drill up to 4 Port Moresby offshore wells 144°E 145°E 146°E

Recently announced farm-down to TOTAL: Will hold equal interests in five licences – PPLs 234, 244, 338 & 339 and PRL 10 Transaction terms include firm and contingent components Have also formed strategic partnership to look at other licences in PNG Culmination of competitively bid selection process

25

Offshore Leads and Prospects

Chauka

Dima Tadiva

Hagana

Kidukidu Flinders

26 Oil Appraisal - Mananda 6

90 km 2D seismic programme over Mananda 5 discovery completed in 2Q12 Interpretation of seismic has confirmed structure Appraisal well, Mananda 6, planned for 1Q13 PPL 219: Oil Search 71.25%, JX Holdings 28.75%

Mananda 6 Mananda 5 Proposed Location

MORAN

2012 SE MANANDA Seismic

5km

AGOGO Testing Mananda 5 – 1Q11

27

MENA Exploration

28 Kurdistan: Taza-1

Taza-1 well spudded early July Oil and gas shows encountered, expected to drill into primary objective and reach its target depth by end October Large structure, simple 4-way dip closure, with potential for 250-500 mmbbls Target structure sits in very prospective location on-trend and adjacent to existing fields Taza PSC: Oil Search 60%, Total 20% (following ShaMaran sale), KRG 20% back-in

Khor Mor Kurdamir 2-3tcf ~400mmboe

Jambur ~800 mmbbl

Sarqala discovery Taza 9600bpod

Qamar ~200 mmbbl

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Kurdistan Operating Environment

Kurdistan attracting Chevron – 2 Blocksblocks significant global attention: from Reliance Recent entrants include Chevron, Total, ExxonMobil, Total – 2 Blocks Gazprom, Genel from Marathon KRG building closer ties to Turkey, providing long term alternative export route Current production is 150,000 bopd (100,000 export), expected to rise to 300,000 bopd in 2013: Export oil either trucked or transported through Kirkuk – Ceyhan Pipeline Taza-1 Strong local market, priced at discount If successful, Taza development options are initial 5 – 15,000 bopd Gazprom Extended Well Test within 12 –2 Blocks months of discovery, upsizing to 40-60,000 bopd 2-3 years XOM – 6 Blocks Genel – 8 Blocks later (shown in red) 30 Tunisia: Tajerouine Permit

Semda-1 Location

Semda

Semda-1 exploration well to spud late 2012 Targeting proven oil plays and new deep gas play Potential for >150 mmbbls oil and >400 bcf gas Excellent PSC terms Additional follow-on potential if Semda successful Tajerouine: Oil Search 100%

31 Activities Underpinned by Profitable Oil Production

10

Gobe Main Hides GTE 9 Moran SE Mananda 8.12 Kutubu SE Gobe 8 7.66

7 6.69 6.2-6.7

6

5

4

3

2

1

0 2009 2010 2011 2012 2013 2014

(Forecast)

32 2012/13 Development & Near- Field Appraisal Drilling Activity

PPL260 PRL PDL9 02 Hides PDL1 PRL Angore PPL277 11 Juha PDL PDL8 PRL 7 11 6°S PDL6 PDL5 PDL7 PPL233 Moran: PPL219 PPL233 2012 : 1 well Mananda 5 2013 : 1 well, ± 1 workover SE Mananda Kutubu: Agogo: 2012 : 3 workovers 2012 : 1 well, 2 workovers 2013 : ± 1 well, 3 workovers 2013 : 1-2 wells PDL2 Gobe Main: Usano: 2013 : ± 1-2 workovers 2012 : 1 workover 2013 : 1 well Oil Field PDL 4 Gas Field PRL Cobra Prospect SE Gobe: 14 2012 : 2 well interventions PDL PDL Oil Pipeline 2013 : ± 1-2 workovers 3 4 Iehi PNG LNG Gas Pipeline 7°S PRL09 OSH Facility Barikewa PNG LNG PRL08 Project Facility Kimu Major Road

40km

143°E 144°E 33

2012 Production Outlook

Production to end September of 4.6 mmboe Production for 2012 full year expected to be within previous guidance of 6.2 – 6.7 mmboe. Significant contributions from successful 2011 and 2012 wells and workovers, offset by: Precautionary shutdown of Kumul loading operations in July/August. Impact ~0.4 mmbbls, including delay in reinstating full production Major flooding - impact on logistical and operational activities Natural decline Two week Gobe shutdown for tie-in of PNG LNG Associated Gas facilities in October Two development wells being spudded in 4Q12, will help maintain production out to first LNG broadly flat Continued focus on maturing near-field portfolio and appraising new pools identified following recent success Rig 103 being mobilised back to Kutubu/Moran to provide optionality to pursue exploration and appraisal opportunities without potential adverse impact on development programme

34 Treasury Update

US$573 million in cash at end September. Cash invested and actively managed with highly rated bank counterparties Refinancing of existing corporate facility concluded with bank syndicate, awaiting Bank of PNG approvals. US$500m five year, non amortising revolving facility Issue was oversubscribed with strong support from banks. New facility secures funding to past first cash flows from PNG LNG No oil hedging undertaken during YTD12 or currently in place US$2.63 billion drawn down under PNG LNG project finance facility at end September

35

PNG Operating Environment

PNG general election went smoothly Expect period of stability under newly elected Government led by Prime Minister Peter O’Neill History of constructive dialogue between industry and Government to manage issues and expectations expected to continue Key areas of focus remain: Improving benefits distribution system, transparency and service delivery Providing support to PNG Government bodies, where appropriate Continue working with Government and community to manage and mitigate operating and investment risks: Oil Search Health Foundation fully operational Ongoing community programmes

36 PNG LNG Transforms Production Outlook

Net Production (mmboe) 25 MENA Hides GTE SE Mananda 20 SE Gobe Gobe Main Moran Kutubu

15 PNG LNG T1/2 start-up

10 8.60 8.12 7.66 6.69 6.2-6.7

5

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Forecast)

37

Conclusion

Oil Search very well placed to generate ongoing value growth First PNG LNG Project sales on schedule for 2014 Increasing probability of LNG expansion following gas drilling success Ongoing programme to further expand gas resources High potential oil drilling underway Activities underwritten by strong cash flows, solid balance sheet and new funding facility

38 O I L S E A R C H L I M I T E D

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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.

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