Opportunities in Qatar an d Ku wait

Nasrollah Gharesifard, Country Manager Middle East

Ilustration@Aker Solutions Agenda

• COVID 19 situation Qatar and Kuwait

• Qatar status and opportunities

• Kuwait status and opportunities Qatar Qatar is currently in its 4th phase of its plan to re-open fully by September. Deaths have been low relative to cases and they have flattened the curve. Traveling is permitted with a negative Covid-19 test.

Total: 117,008 Deaths: 193

Kuwait Kuwait is also in its 4th phase of re-opening. There are partial curfews. Citizens and residents are able to travel to and from the country, starting August 1. Commercial flights are partially resumed. Total: 80,528 Deaths: 515 Qatar – Qatar Petroleum / Gas Non sanctioned offshore greenfield capex by country, 2020-2023, Nominal billion USD

• The current crisis may work to Qatar’s advantage as potential competitors, particularly in the US, delay or cancel major LNG investments.

• Lowest breakeven oil price in the region.

Qatar currently produces:

• 630,000 b oil / day. • Half of production comes from Dukhan, onshore and the rest offshore.

Rystad Energy, Qatar will be one of the strongest growing NORWEP markets between 2020 to 2024 Qatar – Qatar Petroleum / Gas

6 new LNG trains: • Currently produces 77.8 million mt/year of LNG. • ConocoPhillips, ExxonMobil, Shell and Total invited to bid for a stake. • Will increase LNG export capacity to 126 million mt/ • Chevron and Eni believed to be on the shortlist. year by 2028 / 2029 using 50 billion USD.

LNG ships

• QP entered into three agreements to reserve LNG ship (100++) in Korea booking 60% of the capacity: • Daewoo Shipbuilding & Marine Engineering (DSME) • Hyundai Heavy Industries (HHI) • Samsung Heavy Industries (SHI) Qatar projects update

EPC opportunities Offshore Wells, by Rig Type – Qatar North Field expansion • Contracting on the estimated $18bn. W ells 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Engineering work on the new trains has Jackup 80 51 52 50 61 46 52 63 80 92 already begun: Total 80 51 52 50 61 46 52 63 80 92 • Chiyoda, Technip FMC, Japan’s JGC Corporation, Saipem, McDermott, CTCI invited to bid. Sanctioned offshore capex spending in Qatar by sanctioning year • In May, QP awarded the FEED to McDermott which, includes engineering design for eight unmanned wellhead platform topsides, four 38” trunk lines and four 28” intrafield lines, and is expected to take 12 months to complete. Qatar: NORWEP Priority Projects

Dev. Start-up Project Operator Phase FID estimate Comments solution estimate • Qatar’s largest offshore oil field • JV between Total and Qatar Petroleum • Three phases, 8 offshore platforms Al Shaheen Fixed Under dev. 2018 2021 • Phase 1 awarded Expansion (Gallaf) • Phase 2 currently Tendering • The jack-up rig Gulf Drill Lovanda continuing drilling operation • Redevelopment to increase lifetime by 25 years Bul Hanine • Phase 1 A and B under construction Redevelopment Fixed Concept 2021 2024 • Phase 2, involves new offshore facilities Phase 2 • Pre-FEED awarded Wood • Qatar to increase LNG export to 126 Bcm • Four additional LNG trains planned • 8 WHPs planned, FEED McDermott • Onshore FEED Chiyoda North Field Expansion • Qatar is pushing back the start-up of the first phase Fixed FEED 2019 2024 Project of its North Field LNG Expansion Project by up to six months so that it will now enter production in 2025. Qatar has short-listed energy majors to be awarded a collective 30% share of the first phase, including Chevron, Eni, Shell and Total. Kuwait – KPC 2.81 million b/d, reduced to 2.16 million b/d Will increase to 2.29mn b/d in 2nd half of 2020

➢ Oil sales provide about 90% of Kuwait’s official revenue.

➢ KOC has 150 land rigs in operation.

➢ KPC is planning to merge some subsidiaries.

➢ KOC is drilling offshore for the first time.

➢ Halliburton has awarded contracts for offshore drilling for 6 high- pressure/high-temperature (HP/HT) exploration wells on two jack up rigs. Source: RSM, 2020. Kuwait Quarterly Newsletter Questions?

Nasrollah Gharesifard, Country Manager Middle East

Ilustration@Aker Solutions Innovation for Excellence

Our approach is simple; either fill existing technological gaps through strategic agreements with innovative technology providers OR penetrate markets, dominated by international companies through establishing a local company providing similar services at competitive prices and quality.

www.meofs.com Agenda

Kuwait Overview •Geographic location •Facts on Kuwait

•Introduce the K Companies O&G Industry •Differentiate between Upstream, Downstream & Midstream •Explain hierarchy and reporting

•Statistics on Kuwait Oil Company •Major focus of KOC Kuwait Oil Company •Innovation & Technology Group •Prequalification and Contracting

•Thank you for the time •Any Questions are welcome Q&A

www.meofs.com SECTION ONE The State of Kuwait

5th Largest oil reserve

3.27 USD to KWD

17,818 sq km

4.137 M population

101,500 M bbls

1,784 B cu m

1938 First Discovery

1946 First Shipment

www.meofs.com S E C T I O N TWO The K Companies

www.meofs.com S E C T I O N THREE Rig Count 2015-2021 Kuwait Oil Company Deep Drilling & WO Deveopment Drilling & WO Total

180 160 140 120 100 80 60 40 20 0 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

North Kuwait 5 year Well Plan # Exploration & Technology All activities in Sabriya, Bahrah, Rawdatain, All exploration, seismic, Drilling H Oil Workover Total Umm Nigga, Ratqa, Abdali prospect evaluation, gas 4500 West Kuwait 4000 All activities in Umm Gudair, 3500 Directorates Minaguish, Abduliyah, Dharif 3000 South & East Kuwait 2500 All activities in Ahmadi, 2000 Burgan, Magwa 1500

Drilling & Technical Support 1000 Major projects All Drilling & WO and 500 All projects exceeding Well Services $100m 0 2020-21 2021-22 2022-23 2023-24 2024-25 www.meofs.com S E C T I O N THREE Hot topics in KOC today - Macro

Offshore Project Heavy Oil Project Unconventional & Non Associated Gas EOR

KOC has embarked on the execution With billions of dollars in vested in wells EOR is a direction KOC is moving to, As a upstream strategic objective KOC phase of the Project. An IDS contractor and processing KOC has embarked on identifying new reserves in has put a target on achieving has been awarded the scope to drill and an aggressive plan to exploit the heavy unconventional and highly challenging sustainable non-associated gas complete 6 HPHT well offshore in oil reserves of North Kuwait. Thousands areas, their commercial viability production. This is achieved through Kuwait. KOC claim the offshore area of wells have been drilling and initially becomes more difficult. Optimizing and challenging drilling and completion will as estimated 100,000 barrels to daily the production will be obtained through enhancing reservoir performance using operations and the production side. production steam soaking primary and secondary methods gives a Early production facilities are required to baseline for future tertiary/EOR methods handle the gas until the production is developed to full capacity.

www.meofs.com S E C T I O N THREE Surface Team Innovation & Technology From the well to export technologies Subsurface Team Deals with all subsurface technologies

Information Management I&T teams are the gateway for new technology implementation Provides the integrated E&P database services, systems and solutions to support users within KOC. Aside from piloting technologies, I&T has evolved towards becoming a professional service provider within the Information Solutions organization. Provides and tests new software for the upstream business

Solutions Contractual Mechanism Technologies are evaluated I&T then enters through an to a pilot eProposal contract with the system to solution ensure the provider and Challenges technology is Introduction has success Success viable for the criteria for the technology I&T discuss with challenges at The technology Once the value the various hand providers of the asset owners in presents the technology is KOC on the solution to I&T deemed challenges they and asset successful a full are facing and owners to field how technology demonstrate the implantation can help benefits and recommendatio candidate wells n is given to the are chosen assets by I&T

www.meofs.com S E C T I O N THREE Technologies sample Energy Efficiency & Renewables Gas Technologies • Solar Thermal, Solar Electric • Mapping the architecture of Intra- Gotnia • Smart Energy Controllers EOR Technologies • Mapping thin beds • CO2 reduction technologies • EOR Fit for purpose simulator • Formation Evaluation – low porosity • Injectants for efficiency and cost carbonates Drilling & Completion effectiveness • Radial Drilling, Casing Drilling • Well Stability issue • Water treatment for EOR • ICD • Advanced EOR screening • Tight Carbonate stimulation technologies • Fluid loss during circulation Process Safety • Drilling Performance Management

• Gotnia isolation • DH Scale mitigation • Wirelines SSSV • Automated injection skids Heavy Oil • On Line inspection tank bottoms Technologies • Sludge treatment • Steam Front movement • Ground deformation non seismic • Facility integrity management Reservoir • Leak detection in sour pipelines Technologies • Thermal simulation • Productivity enhancement • Sand Production management

Smart Field • Reservoir scaling and souring Technologies • Rock & Fluid properties • Roadmap for Digital & Well Productivity Intelligence solution Technologies 0 • Tight reservoir development • Enhanced reservoir monitoring • ESP Failure, sand, emulsion, power • Ground deformation non seismic

• Downhole monitoring • OH Fracturing • Thermal simulation technologies • Asphaltene Management • Productivity enhancement • Integrated asset optimization • Heavy Oil Production technologies • Smart Energy Controllers • CO2 reduction technologies SURFACE SUB-SURFACE www.meofs.com S E C T I O N THREE Conventional Contracts Contracting Prequalification Competitive Tenders •Tender issued single or 2 envelope (Mumarasa/Negotiable) •May include Technical/Commercial Negotiations

•Single envelope basis Competitive Tenders •No price negotiation allowed (Non-Negotiable) •Lowest Price to technically capable bidder

Single Source •Specialized services (Direct Contracting) •Such tenders are Mumarasa type

•Tender is less than 75,000 KD approval is 01 •KOC Procurement Committee •Otherwise to stage 2

•Tender is between 75,000 KD and 5,000,000 KD approval is •KPC Higher Procurement committee 02 •Otherwise to stage 3 (unless exempted tenders)

Commercially Technically Financially HSE •Tenders exceeding 5,000,000 KD 03 •Central Authority for Public Tenders

www.meofs.com Summary

Kuwait Overview •Geographic location •Facts on Kuwait

•Introduce the K Companies O&G Industry •Differentiate between Upstream, Downstream & Midstream •Explain hierarchy and reporting

•Statistics on Kuwait Oil Company •Major focus of KOC Kuwait Oil Company •Innovation & Technology Group •Prequalification and Contracting

•Thank you for the time •Any Questions are welcome Q&A

www.meofs.com SECTION ONE The Team & Legal

This document may contain some forward-looking statements. The statements and information are based on the market information at the time of creating this document and from sources within Kuwait. . As with any projection or forecast, forward-look statements are Mohammad J Alfawaz Abdulrazaq H Ali inherently susceptible to uncertainty and changes in circumstances. Chief Executive Officer Executive Director

All information in this document is to be considered confidential. The With a Computer Engineering Over the last 20 years established a information, or part of the information, contained may not be background and solid technical number of successful businesses and forwarded to persons without the prior permission of Norwep or MEOFS knowledge, Mohammad’s international driven by connecting the O&G clients to experience spans from Indonesia to technology to help improve efficiency. Managing a business segment in Passionate about smarter workflows to Norway for Schlumberger. Co-founded yield superior results. Abdulrazaq’s MEOFS to focus on New Technology international experience and local implementation. Mohammad holds a knowledge enables businesses very strong connection with Oil & Gas expanding to the Middle East to do so business owners and executives in the with ease. region. www.meofs.com Q&A

Get In Touch

[email protected] ✉ Innovation for Excellence

 +965 22279311 Sun – Thu 8am to 5pm Equinor Equinor in Qatar and Kuwait

Ahmed Osman Business Development Manager for Equinor

Ahmed Osman is the Business Development Manager for Equinor in Qatar and Kuwait. He has 20 years of experience in the energy industry, and worked in the Middle East, USA and the UK. He is currently based in Qatar after spending the last 10 years in Equinor USA . His previous roles included managing the HSE and Regulatory Affairs team in Egypt and afterwards in Alaska, USA. Afterwards, he moved to Houston and was a project manager for business development in the US, Canada and Mexico. Before joining Equinor in 2008, he was heading the HSE department for British Gas in Egypt. Ahmed has a MSc in Chemical Engineering and executive courses from Harvard and Oxford universities.

23 Equinor in Qatar and Kuwait

Ahmed Osman, Business Development Manager Qatar and Kuwait

Open 16 June 2020 Disclaimer

• Neither Equinor nor any other company or person presently affiliated or associated with Equinor nor any of their respective advisors, agents, directors, officers, or employees will render any advice to the Recipient or make any representation or warranty, expressed or implied, as to the fairness, accuracy or completeness of the information contained in this Presentation. Accordingly, neither Equinor nor any other company or person referred to above or their respective advisors, associates, agents, directors, officers or employees accepts any liability whatsoever for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. No person has nor is held out as having any authority to give any statement, warranty, representation or undertaking on behalf of Equinor in connection with this Presentation.

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Open MelkøyaTheProvidingPartnersGrowing world’s ,world colleagues,naturalenergy first populations floating forgas 170,000plant,and wind friends and households. farm. increasing energy demand. We are Equinor Hammerfest,HywindApodiatRio Peregrino de Solar,Janeiro, Scotland. BrazilFPSO, Norway Brazil. Brazil.

Our purpose Turning natural resources into energy for people and progress for society

Our vision Shaping the future of energy

Our values Open, courageous, collaborative and caring

Our strategy Always safe, high value, low carbon

Open Equinor : Leading Global Energy Company

2.1 2.8 >30 Million barrels Giga watts Countries of oil equivalent per day Renewables in development • Established in Norway nearly 50 years as the National Oil average in 2019 Company (Statoil)

• One of the largest offshore oil and gas developers in the world

• Leading company in technology and digitilization

• World leader in CCS and offshore wind

• Leading company in enhanced oil recovery (EOR)

Equinor operations Equinor main offices

27 | Shaping the future of energy Open Shaping the future of energy

Strategic principles A future-fit portfolio Enablers

Cash generation New energy solutions Norwegian continental shelf Safe and secure capacity at all times Create a material new Build on our unique position operations industrial position to maximise and develop long-term value

Technology Capex flexibility Always safe and innovation High value Capture value Low carbon Empowered from cycles people

Midstream and marketing International oil & gas Secure premium market access Deepen core areas and Low-carbon Stakeholder and grow value creation through develop growth options advantage engagement cycles

28 | Shaping the future of energy Open Future value creation in CCUS and Hydrogen

• Hydrogen plays a key role in a low carbon future • Blue hydrogen technology is available at scale today

• H2 enables solutions for the hard-to-decarbonisation sectors

H2 /Ammonia shipping Northern Lights H2Demo Norway H2H Saltend Clean steel Replacing diesel/fuel oil in the A Norwegian full-scale CCS Demonstration of natural gas Aim to build the world’s first Decarbonisation of the steel shipping sector value chain, including capture based hydrogen production zero carbon industrial cluster industry - replacing coal with of CO2 from industrial sources with CO2 removal and storage in the North of UK hydrogen

29 | Equinor's Climate Roadmap Open 19 February 2020 The Middle East: Strong impacts from Covid-19 but still opportunities exist

ME Investments outlook Mega projects coming beyond 2020

30 | Open Strong Interest in the region

31 | Open Qatar: Largest LNG projects coming up between 2020-2022

• Qatar currently produce 77 million tons per annum (mmtpa) and plan LNG projects B/E price in USD/MMBTU * to expand the LNG production to 126 mmtpa by 2027 Tanzania LNG Coral FLNG • The North Field is the largest gas field with 1760 tcf reserves Driftwood LNG Freeport Train 3 Golden Pass Export • Low Breakeven (B/E) prices Rovuma LNG (Area 4) Sabine Pass Export Train 5 • Opportunities to collaborate with Qatari stakeholders in trading, Cameron LNG Export Sabine Pass Export Train 6 technology, digitalization and CCS Corpus Christi LNG Train 3 Mozambique LNG (Area 1) Yamal LNG Qatar New Megatrains Qatargas-1 The Opportunity 0 1 2 3 4 5 6 7 Becoming a partner in the LNG projects in Qatar LNG output (mmtpa) of top 5 LNG producers in 2030

32 | * Data from Woodmac LNG tool Open Kuwait: Untapped reserves and opportunities for IOCs

• One of the lowest production cost/barrel in the world (below $10) • KOC will now move into the highly under-explored offshore sector • Ambition is to grow production from 2.7mm bbl to 4 mmbbl by 2030 • Equinor experience suited to support KOC ambitions for offshore and onshore developments

The Ambition Become a partner of choice with KOC in offshore and onshore greenfield projects

KOC: Kuwait Oil Company Internal 24 February 0202 Thank you

Equinor in Qatar and Kuwait Ahmed Osman Business Development Manager Email: [email protected]

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