Together For Growth ANNUAL REPORT 2013

Annual Report 2013

Airport Heights: Ghala, P.O. Box 3395, CPO, P.C. 111, Sultanate of Oman. Tel: +968 24625400, Fax: +968 24625406 Shatti Al Qurum: P.O. Box 560, Mina Al Fahal, P.C. 116, Sultanate of Oman. Tel: +968 24609999, Fax: +968 24609900 Qalhat Complex: Tel: +968 25547777, Fax: +968 25547700

His Majesty Sultan Qaboos Bin Said

ANNUAL REPORT 2013

At A Glance

+90% 6 10

Omanisation - Oman LNG has Million US$, the amount Million Man Hours without remained at the forefront of allocated for staff training Lost-Time Injury (LTI). attracting and retaining the and development in 2014. best talent. Omani nationals are occupying seven of the eight positions in the Company’s Management Team.

+100 +60 13 0

Staff sponsored by the Staff are undergoing Million US$ - amount Company for higher education. professional qualifications, invested in over 3,200 sponsored by the Company. projects and initiatives across the country.

+99% 560 1.5%

Pacesetting Reliability Number of Staff. Of Company's Net Income of Trains. After Tax (NIAT) dedicated for Social Investment Programmes.

Information provided are as at December 2013.

www.omanlng.com

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ANNUAL REPORT 2013 Contents

Oman LNG in Brief 8

Our Vision, Mission, Core Values and Strategic Objectives 9

Board of Directors 10

Chairman’s Message 12

Corporate Governance 14

Chief Executive’s Summary 16

Management Team 17

The Crew: Employing and Nurturing Talent 18

Powering the Engine: Producing LNG Safely and Reliably 20

Setting Sail: Protecting Environment and Caring for People 22

Arriving at the Destination: Global Ambassadors through LNG Cargo Sales 24

Taking Inventory: Financial Performance 26

Qalhat LNG 28

Returning Home: Social Investment Programme 30

The Shareholders:

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Oman LNG in brief Oman Liquefied Natural Gas LLC (Oman LNG) is a joint venture company established by a Royal Decree in 1994 and operates under the laws of the Sultanate of Oman. The Company engages in the business of producing and selling Liquefied Natural Gas (LNG) and its by-product, Natural Gas Liquids (NGLs). Oman LNG undertakes, directly or indirectly, project operations and related activities essential to liquefy, store, transport and market Oman’s natural gas and to deliver LNG to customers. The Company operates 3 liquefaction trains - at its site in Qalhat near Sur with a nameplate capacity of 10.4 million tonnes per annum (mtpa). The Company’s activities contribute to the Government of Oman’s objectives of diversifying the economy. Oman LNG’s Liquefaction Plant is located on the coast at Qalhat near Sur in the South Sharqiyah Governorate and its head office is in Muscat. As of September 1, 2013, Oman LNG officially integrated with Qalhat LNG. The integrated entity operates under the name of Oman LNG.

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Our Vision The Best At What We Do Our Strategic Objectives 1. Creating Value for all our Stakeholders Our Mission In an environment of no short-term upward flexibility in feed • To produce, market and deliver LNG safely, reliably and profitably gas supply from domestic sources and continuing uncertainties • To develop our business and employees to their full potential in international markets, it is imperative that we continue to • To be a trusted partner in the sustainable development of Oman satisfy our customers as a dependable supplier of LNG and and its people NGL whilst maximising the value along our entire hydrocarbon chain. We will achieve this through further minimising energy usage, hydrocarbon losses and operating costs and Our Core Values maximising the value creation of all our assets by seeking and Individual Behaviour exploiting conventional and non-conventional commercial and Integrity logistic opportunities. • Living the OLNG values 2. Engaging Effectively with our External Stakeholders • Doing what is right even if no one is watching The reputation of our Company and sustaining our licence to Professionalism operate depends critically on retaining the trust of customers, • Producing quality work at all times suppliers and contractors and their continuing desire to do • Efficiency and effectiveness in carrying out assigned business with OLNG. This can never be taken for granted roles and responsibilities and will depend, ultimately, on the professionalism, integrity and fairness that all our employees demonstrate in their Accountability relationships with our stakeholders. • Delivering on promise based on agreed targets In equal measure, effective and engaging relationships • Demonstrating ownership of mandated assignments with our communities and the Omani people at large are Organisational Behaviour equally important for retaining our licence to operate. As we move our efforts in this area for a Social Investment Team Work Programme to a Development Foundation, it is imperative that • Collaborating with others to deliver on organisational objectives the effectiveness and reputation of the Company's Social • Value differences and leverage on diversity of the team Investment activities increase.

Care & Respect 3. Managing our Business Safely, Reliably and Efficiently • Listening to concerns of stakeholders The reputation of our industry and credibility of Oman LNG as a • Respecting diversity reliable and trustworthy supplier has grown to depend strongly • Considering stakeholders’ needs on excellence in personal safety and asset integrity, coupled to effective management of all the business processes within Empowerment the Company, plant reliability and dependable delivery of our • Having confidence and trust in delegated responsibilities products. Achieving top-quartile performance in these areas to staff to execute tasks competently requires operational excellence, organisational effectiveness • Coaching and mentoring to continuously develop staff and passionate adherence to best practices. Business Behaviour 4. Growing our People and our Business Transparency & Fairness After 13 years of successful operations and the development • Engage staff/stakeholders in an open, transparent of a truly professional cadre of staff, our focus moves to and timely manner transforming Oman LNG into a mature organisation with • Provide equal opportunity to all staff without prejudice efficiency and professionalism at the core of all wedo. • Impartiality in staff reward and recognition With the employment opportunities in the 2013-2016 • Build courage to give objective feedback Business Plan, we must ensure that we remain attractive to the best talent and offer development and challenges that bring Reputation & Loyalty real personal growth to our employees and parallel growth in • Compliance with the law and business principles in order to our business results in the critical areas of optimised revenues, maintain credibility with stakeholders and the license to operate cost efficiency and robust processes. It wins the trust of our • Uphold business interests at all times without breaching customers, communities and other stakeholders. The case for organisational confidentiality continuous change remains compelling.

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Board of Directors

H.E. Dr. Mohammed bin Hamad Al Rumhy Minister of Oil & Gas, Government of Oman, Chairman of the Board of Directors of Oman LNG L.L.C.

H.E. Dr. Abdulmalik bin Abdullah Al Hinai Advisor to the Ministry of Finance, Government of Oman, Deputy Chairman of the Board of Directors of Oman LNG L.L.C.

Tahir bin Salim Al Amry Saif bin Hamad Al Salmani Director General of Director General of Treasury and Accounts, Planning & Projects Evaluation, Ministry of Finance, Ministry of Oil and Gas, Government of Oman Government of Oman

Bader bin Ali Al Sariri Saber bin Said Al Harbi Director of Petroleum Concessions, Director General of Economic Ministry of Oil and Gas, Statistics, National Centre for Government of Oman Statistics and Information, Government of Oman

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John Blascos Yoshinobu Satomi Shell Country Chairman and General Manager, General Manager, Middle East Natural Gas Shell Development Oman LLC Business Department, Natural Gas Business Division, Energy Business Group, Mitsubishi

Bert Christoffels Hiroshi Nakamura Vice President Production Deputy General Manager, Excellence & GDH CSU, Natural Gas Division IV, Shell Projects & Technology Energy Business Unit II, Mitsui & Co. Ltd.

Xavier Preel Sang Hwan Park Vice President Managing Director and General Affairs, Middle East Chief Executive Officer, Exploration and Production, Korea LNG Limited TOTAL

Dr. Antonio Jose Da Costa Silva Takashi Yasuda Chairman of the Deputy C.O.O. & General Manager, Management Commission, Natural Gas Business Department, Partex Oil & Gas Energy Division No.1, ITOCHU Corporation

Harib Al Kitani Olawale Animashaun Chief Executive Officer, Oman LNG’s General Counsel Oman LNG and Company Secretary

* ITOCHU Corporation attends all Board Meetings but does not have voting rights on the Board.

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Chairman’s Message

In the year 2013, our LNG industry entered a new era in its development with the integration of Oman LNG and Qalhat LNG into one entity. The many areas of similarities and indeed mutual cooperation that existed between both companies prior to the integration, present clear opportunities for growth that is expected to come from a stronger, unified establishment that has now emerged under Oman LNG. Yet as a significant contributor to the national economy, the industry carries substantial responsibilities that go beyond revenue and into other responsibilities including safety of operations, responsiveness to the needs of society and empowering employees to effectively handle the challenges of future growth. I am proud to note that 2013 was another remarkable year for the Company. Oman LNG successfully maintained its excellent record in safety with the achievement of almost 10 million man-hours without a Lost Time Injury (LTI). The new integrated structure has also brought more opportunities for nationals to broaden their experience in this critical industry and work to make important contributions for its development. The global LNG trade is forecast to grow and our country’s role as a reliable supplier for this much-in-demand fuel will be better enhanced by our people consciously taking responsibility for its efficient operations. Oman LNG continues to be an outstanding example for other businesses in the way it supports the Government’s aspirations for developing society and improving the quality of life in the country. Considering the average pricing for a barrel of oil stood at US$ 110 in 2013, the results of Oman LNG’s performance for the year show stewardship as seen in this report, one of the best since the inception of the Company. In the years ahead, the culture of prudent management and careful attention to the business, ensuring the best use of resources will be the overriding task of the Company. This in turn will impact positively on the country’s progressive development for our common good. We offer our appreciations to His Majesty Sultan Qaboos bin Said for his wisdom, guidance and support to this industry and also to the Government of Oman for its commitment to the progress of both the business and the workforce.

H.E. Dr. Mohammed bin Hamad bin Saif Al Rumhy Minister of Oil & Gas and Chairman of the Board of Directors

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Corporate Governance

Board Composition The Board of Directors comprises Governance a maximum of fourteen (14) non-executive members as follows: Structure Government of the Sultanate of Oman: Seven (7) members, including Shareholders the Chairman and the Vice-Chairman; Shell: Two (2) members; Other Board of Directors shareholders: One (1) member each. Itochu Corporation is represented at the Board meetings by an Itochu Shareholders Board Committees: Committees: nominee who has no voting rights. -Audit Committee -Technical Board Activities in 2013 -Management -Joint Remuneration and In 2013, the Board of Directors met in (Personnel, Succession Committee March, June and November. At the first Finance, Commercial) meeting in March held at the OLNG plant in Sur, the Board reviewed/ approved Best Company in Corporate Governance the 2012 corporate performance by World Finance and scorecard. It also endorsed the beginning of a very special journey financial statement and final dividend of both companies. The Board also Chief Executive Officer for approval by Shareholders at reviewed the Oman LNG Business Plan the General Meeting. The General 2014-2018 Premises. Meeting of the Shareholders also Deputy CEO & Chief In the November meeting, the Board Human Resources Officer approved the appointment of KPMG approved the Proposed Business Plan as the Company’s external auditors for 2014–2018 and the 2014 Operating 2013. The Board also approved the and Capital Budgets. The newly Chief Financial Officer & budget for the Company’s Enterprise Deputy CEO for QLNG Affairs revamped Manual of Authorities Resource Planning (ERP) project. reflecting necessary changes arising In addition, the Board received from the integration was approved. a report on the status of the Chief Commercial Officer In addition the Integrated Assurance integration exercise of Oman LNG and Plan 2014 – 2018 was reviewed and Qalhat LNG. The summer Board approved. The CEO presented his meeting in June 2013 was aligned report for the year 2013. One of the Chief Operating Officer with Qalhat LNG Board at the same key highlights was the successful venue. It was a momentous and ground integration of the Management of breaking meeting for both Boards Oman LNG and Qalhat LNG. as each of the Boards separately Chief IT & Investment Officer approved the commencement of the Shareholders’ Committees integration of the management of the The Shareholders’ Committees were two companies. The approvals were established under the Shareholders’ Chief Marketing Officer preceded by a presentation made by Agreement to assist the Board in the consultants – Deloitte – to a joint an advisory capacity. There are sitting of the two Boards. The joint four committees which address sitting enabled the directors of the 1) Technical 2) Personnel 3) Financial Chief Corporate Affairs Officer two companies to get fuller insight and 4) Commercial matters and of the proposed integration and meet prior to each board meeting. provided opportunity for questions Each shareholder has the right to Chief Internal Auditor* and issues to be addressed at the be represented on each shareholder same sitting, enabling all sides to committee. To improve efficiency, the have common understanding going Personnel, Financial and Commercial forward. After the joint sitting, each Committees meet jointly, whilst the *Reports directly to the Chairman of Audit Committee Board met separately to consider and Technical Committee sits separately. approve the integration within its own The Shareholder Committees do not governance framework. This was the take decisions for the Company, but

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review and endorse the management when the Statutory Financial Audit and in November 2008 by a Board recommendations for the Board of Management Letter were presented by Resolution to ensure that Oman LNG Directors to approve. Each committee the Statutory External Auditor, KPMG. continues to identify, and develop its met three times during 2013. To ensure independence, the Chief leadership talent, providing it with As planned, these meetings were prior Internal Auditor reports directly to rewards and incentives commensurate to the meetings of the Board. the Chairman of the Audit Committee. and competitive with market practices. Board Committees In line with best practice, the Internal The Committee reports directly to the There are two Board Committees: Audit department adopts a risk based Board of Directors via its Chairman and 1) Audit Committee and 2) Management methodology in proposing and executing comprises non-executive members as Remuneration and Succession Committee. its audit programme. Several assurance follows: Government of the Sultanate audits were also carried out by external The Audit Committee of Oman: Three (3) representatives, parties, including the Company’s including the Chairman; Shell: One The purpose of the Audit Committee External Auditors, Shareholders, is to provide an independent oversight (1) member; Non-Shell Shareholders: International Standards Organisations Two (2) representatives chosen of the systems of internal controls (ISO) and the Technical Advisor. During and financial reporting processes in rotation. The first sitting of the the 2013 meetings, the audits carried Committee was held in 2009. through a review of the quality, out during the year were reviewed by independence and effectiveness of the committee for levels of compliance The Company Management internal and external audits. The Audit with the control framework. As part The Management of the Company Committee reports directly to the of its mandate to ensure an effective implements an Enterprise-wide Risk Board of Directors via its Chairman and control is in place, the committee also Management (ERM) approach that comprises non-executive members as tracked the management's compliance provides a proactive framework of follows: Government of the Sultanate with proper and timely closure of risk management and mitigates risks of Oman: Three (3) representatives, agreed audit actions. In addition, the and their potential impacts on the including the Chairman; Shell: One Committee reviewed audit reports, (1) member; Non-Shell shareholders: achievement of the Company’s strategic the management letter and associated One (1) representative chosen in objectives and goals. Each identified Financial Statements for 2012 by rotation; Any Shareholder: One (1) risk is assessed and appropriate the Statutory External Auditors for technical representative agreed by the measures are introduced to provide all endorsement by the Board of Directors. shareholders. The Audit Committee met reasonable assurances that threats will three times in 2013. The meetings were Management Remuneration and not materialise and in the event they attended by the Acting Chief Internal Succession Committee do any adverse impact is minimised. Auditor and the Chief Executive Officer. The Management Remuneration and The process and identified risks are The Chief Financial Officer was present Succession Committee was established reviewed annually.

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Chief Executive’s Summary

The integration of Oman LNG and Qalhat LNG, without doubt Social Responsibility made 2013 a defining year for the country’s LNG industry. As a responsible value- With steadfast support from the Government of Oman and adding corporate citizen, other shareholders, the complete integration of the two Oman LNG supported companies on 1st September has paved the way for the LNG a number of welfare industry in Oman to provide a more efficient delivery of supply programmes under to our buyers and the wider energy market, in a manner that is its social investment reliable, yet flexible in responding to rising global demand for programme in the country. energy. The programmes undertaken by the The binding together of the two companies into one stronger Company in the course of entity under Oman LNG brought to actualisation many the year included: months of careful, detailed planning, to make capital of diverse strengths, and minimise any potential risks or competition they • The building of a posed as separate companies. state-of-the-art Sailing School in Sur, As a result, we are now better positioned to optimise in partnership with our resources for the benefit of the Government, other Oman Sail. shareholders, the market and all our other stakeholders. • With Oman Road Our focus in the years ahead will be to maintain the integrity Safety Association of our plant assets, continue to place a premium on health, (ORSA), the Company launched a Road Safety Mascot to safety and the environment (HSE) that safeguards our people drive home the message of safety on our roads through and operations, and through a robust training and development artfully crafted communication messages. programme, equip ourselves to efficiently meet the challenges • Vehicles for the Omani Women’s Association (OWA) in the industry. to aid transportation of children and women for the HSE association’s activities. Building on past records of excellence in safety, we were able • Provision of modern health equipment to Sur Hospital. to close 2013 with a strong record, achieving almost 10 million Our support, for which we have received a number of man-hours without a single Lost Time Injury (LTI). With all recognitions in the past, remains a vital contribution to the hands on deck, we aim to sustain this performance. development of Oman and its people. Although the integration resulted in an overall increase in staff With plans for the establishment of an Oman LNG Foundation, requiring greater HSE consciousness, this level of attainment the Company will have a dedicated team to further execute its in our HSE was also against a backdrop of shutdown activities carefully tailored social investment programmes. that drew high numbers of personnel to the plant to execute Our Results necessary maintenance/repair work and return the train to production in time to meet our obligations. In this annual report, I am happy to present you with some of the highlights of our financial performance and operations We remain strongly committed to our emphasis on safety. in 2013. A year which saw record breaking achievements in A commitment that makes us chronically uneasy about taking different areas of the business. any activity for granted and to avoid complacency with our These results are an unfolding manifestation of our vision of achievements in this area. being the “Best At What We Do” so we maintain our position Further, in 2013, we continued to involve resident contractors as a trusted partner throughout the LNG value chain and in the in our HSE programmes, engaging all staff with personal growth, development and diversification of the economy of the commitments of “I will” statements and thus promoting our Sultanate and its people. culture of safety with all our stakeholders. The management and staff of Oman LNG who strived and Omanisation worked quite hard throughout the year are extremely grateful for the continuing guidance of our shareholders, and the Another consequence of the integration exercise was an Board of Directors and its Chairman for their support increase in levels of Omanisation at Oman LNG, which at the throughout 2013. end of 2013 stood at just over 90%. This figure is in line with We also recognise the opportunities that have been created recently released government target for Omanisation in the for all of us through the continuing success of Oman, country’s energy industry. made possible by the vision and leadership of His Majesty Across the Company, the integration has opened up new Sultan Qaboos bin Said and the Government of Oman. positions to adequately cater for an expanded portfolio of business activities in different areas. These positions are being filled by capable Omani hands to drive the business forward and present our people with valuable learning that prepares them Harib Al Kitani for leadership in many aspects of our business. Chief Executive Officer

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Management Team

Harib Al Kitani Chief Executive Officer

Amor Al Matani Hafidh Al Harthy Deputy Chief Executive Officer & Chief Human Chief Financial Officer & Deputy CEO for QLNG Affairs Resources Officer

Rene de Nier Hamood Al Sinaidi Chief Operating Chief Marketing Officer Officer (QLNG)

Adnan Rajab Chief Commercial Officer

Saif Al Harthy Khalid Al Massan Chief IT & Investment Officer Chief Corporate Affairs Officer

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Employing and Nurturing Talent

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Key Highlights In Numbers • Following the integration exercise, more • Total Staff: 560. opportunities became available to Omani nationals to develop leadership skills as well as • Omani Staff: 501. transfer knowledge across different areas of the • Omanisation: 90.3% against a target of 90%. LNG business through internal postings to other • 11 Omani staff on cross-posting. departments in the Company. • 1000 courses delivered to staff. • We continue to emphasise training for all staff as a way of empowering our people to remain the best equipped in the oil and gas industry.

Omani Joiners & Leavers 2009 2010 2011 2012 2013

5 24 13 -9 9 15 60 73 22 35 -10 -9 -11 -13

Omani Joiners Omani Leavers Net Intake/Exit

Expatriate Joiners & Leavers 2009 2010 2011 2012 2013

-1 9 -3 3 7 18 8 15 10 -17 16 -9 -11 -12 -3

Expatriate Joiners Expatriate Leavers Net Intake/Exit

Employment Profile

2009 2010 2011 2012 2013

55 54 56 55 59

343 348 409 421 501

Omanis Expatriates

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Safe and Reliable Production

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Key Highlights In Numbers • During the year, our Company executed a major • LNG production & capacity: 8.9 mtpa shutdown on Train 2, the biggest shutdown since against 10.4 mtpa capacity. construction. The high integrity of the plant in • Reliability: 98.3%. 2013 furthered our key business goals of producing • Utilisation: 87.9 liquefied natural gas reliably. %. • NGL production: 267,969 tonnes.

LNG Production in Million Tonnes

8.9 8.6

8.4 8.8

8.7

2009 2010 2011 2012 2013

NGL Production in Tonnes Plant Reliability (%)

267,969 248,602 98.30 98.80

251,468 251,334 96.90 95.80

251,397 96.10

2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

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Protecting Environment and Caring for People

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Key Highlights In Numbers • In 2013, we began adopting a “Chronic Unease” • Achieved almost 10 Million Man-hours and 1,301 Health, Safety and Environment (HSE) policy to days without LTI. ensure the Company stays alert in matters of safety • Growing HSE involvement of resident contractors. at all times, irrespective of past achievements • Successfully executed major shutdowns without and milestones. recordable HSE cases. • During the year, we also achieved a reduction of our • Zero overdue inspections of safety critical equipment. hazardous waste inventory through proper disposal in accordance with regulatory guidelines.

12 Life Saving Rules

Do not walk under Do not smoke No alcohol or drugs While driving, do not use Conduct gas tests Obtain authorisation a suspended load outside designated while working your mobile and do not when required before entering smoking areas or driving exceed speed limits a confined space

Follow prescribed journey Protect yourself against Wear your seat belt Work with a valid Work Verify isolation before Obtain authorisation Management Plan a fall when working Permit when required work begins and use before overriding at height the specified life or disabling safety protecting equipment critical equipment

Key Performance Indicators

2013

2013

2013 15

2013 62

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Global Ambassadors through LNG Cargo Sales

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Key Highlights In Numbers • Participated in major international conferences • 139 cargoes were loaded from Oman LNG’s plant in and exhibitions. Sur; 90 for Oman LNG and 49 for Qalhat LNG. • The integration offers greater opportunities to • 40 NGL cargoes were lifted. serve the market by deploying swaps and diversions • Sohar LNG was utilised for 283 days being of cargoes. sub-chartered to various customers and partners. • Kept our reliability to supply markets with • Achieved a Shipping Utilisation of 78%. clean energy.

Commercial Activities

85 87

Total number of LNG cargoes delivered 90

89 95

45 95% 37 88%

Total number Percentage of of NGL cargoes shipping utilisation produced 40 78%

36 47% 35 87%

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Financial Performance

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Key Highlights Financial Highlights of Oman LNG for 2013 • Through a combination of relatively stable energy • Revenue: US$ 4.49 billion, US$ 149 million higher prices averaging US$ 110.72 in 2013 and strict than 2012. control over Operating Expenditure Budget, Oman LNG achieved higher revenues and profits • Net Income After Tax (NIAT): US$ 2,018 million, in 2013. an increase of US$ 68 million from 2012. • Cost Savings: US$ 6.4 million.

Revenue vs. Net Income After Tax 2009-2013

5,000 4342 4491 3963 4,000 3131 3,000 2611 Revenue 2018 1782 1950 2,000 Net Income

US$ million 1387 1137 After Tax (NIAT) 1,000

0 2009 2010 2011 2012 2013

Historical Opex 2009-2013 Opex 2013 (Actual)

199 200 172 173 180 160 15% 150 160 19% 140 Corporate 120 7% Manufacturing 100 Manpower

80 14% Shutdown 60 15% Financing US$ million 40 SIP 20 29% 0

2009 2010 2011 2012 2013

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Qalhat LNG

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Shareholders On 1st September 2013, Qalhat LNG became Government of Oman 46.84%; Oman LNG 36.8%; completely integrated with Oman LNG. Union Fenosa 7.36%; Itochu Corporation 3%; Osaka Gas Australia Pty 3%; Mitsubishi Financial Highlights of Qalhat LNG Corporation 3%. for 2013 History • Revenue amounted to US$ 1.04 billion. Qalhat LNG began operations in 2005 More than a third of this generated via with a single train that made up the third diversion transactions. liquefied natural gas production unit at • Our investments are performing extremely Qalhat in Sur. The train is operated by well. As at the end of the year, we have Oman LNG on behalf of Qalhat LNG. invested in five entities with an average yield Qalhat LNG has three long-term sale and of 13% in 2013. Taking capital appreciation purchase agreements (SPAs) for a total into perspective the total return would contracted volume of approximately be 53%. We will continue our mission of 3.3 million metric tonnes per annum (mmtpa). carefully scouting for more opportunities without getting exposed to undue risk. The agreements to supply LNG include a 20-year SPA with Spain’s Union Fenosa Gas (1.65 mmtpa), • In spite of challenges, we are pleased to report that a 17-year SPA with Japan’s Osaka Gas (0.85 mmtpa) we, along with our long term partners, successfully and a 15-year SPA with Mitsubishi Japan (0.8 mmtpa). diverted 30 cargoes from 2013 ADP.

Shareholders Long-Term Buyers

7.36% 3% 3% 24.5%

46.84% 51.0% 36.8%

24.5%

3%

Union Fenosa Gas Government of Oman Mitsubishi Corporation Oman LNG Senboku Power Fuel Co. Ltd. Union Fenosa

Mitsubishi Corporation

Itochu Corporation

Osaka Gas Australia Pty

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Social Investment Programme

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Key Highlights In Numbers • Social Investment is an important part of both • Support for the Oman Road Safety Association (ORSA) Oman LNG and Qalhat LNG business. It provides an to launch mascots in communication that further the opportunity for the Company to give back to the society message of safety on the roads. from the revenues generated from the sale of LNG. • 100 diploma/degree scholarships for low-income families and special cases. • Our Social Investment Programme (SIP) is thus a • New ENT and ultrasound equipment for Sur Hospital. commitment to the prosperity of the Sultanate that • Establishing an Oman Sail School in Sur. goes beyond income generated from the Government’s • Purchase of buses for the Omani Women’s shareholding in the Company and the taxes the Association in Al Mudhaibi (Sharqiyah, North) and company pays as a responsible corporate citizen. Izki (Ad Dakhiliya).

Key Sustainability Indicators (US$ Million)

2013 3.9

2013 1.3 1.9

2013 3.2 3.9

2013 0.9 1.9

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