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

Strong Long Term Share Price Performance

WoodsideSantos

ASX 100

WTI oil

Oil Search

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Jan 06

Share price (rebased to OSH)

Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11 Jul 11

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OSH Strategies to Create Ongoing Value

Optimise current oil and gas production:Through improved efficiencies and pursuit of near field opportunities

Maximise value of PNG LNG Project (T1 & T2):By utilising in-country knowledge to assist Operator

Develop LNG and other gas expansion opportunities:Build gas resources for both PNG LNG expansion and standalone LNG project/s

Measured programme of other growth options: Optimise exploration portfolio

Ensure Oil Search’s Sustainability:Operate business in transparent and sustainable manner to ensure long term operating stability and enhance ‘social licence to operate’

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PNG LNG Project Overview

44

Kumul Terminal

Port Moresby

7°S

145°E

HidesWellsJuha

Facility

EPC3LNG Facility

Kutubu CPF

145°E 146°E144°E143°E

6°S

8°S

9°S

GorokaKundiawa

Mt. Hagan

Mendi

Kerema

EPC5BKomo

Airfield

100km

147°E

Daru

Wabag

LEGENDOil Field

Gas Field

Oil Pipeline

LNG Gas Pipeline

Oil Facility

LNG Facility

Major Road

Lae

EPC2Offshore pipeline

EPC5AOnshore pipeline

and Infrastructure

Gobe PF

Kopi Wharf

C1 Southcomplete

C2Complete

C1 HGCP

EPC4Hides Gas

Conditioning Plant

PNG LNG Project Overview

6.6 MTPA, 2 train development, operated by ExxonMobilOver its 30-year life, PNG LNG expected to produce over 9 tcf of gas and 200+ million barrels of associated liquidsInitial Equities:

ExxonMobil - 33.2% Oil Search - 29.0%Kroton2 (PNG Government) -16.8% Santos - 13.5% Nippon Oil - 4.7% MRDC (PNG Landowners) - 2.8%

Fully contracted to Asian buyers, with continuing strong market interest

Sinopec (China) ~2.0 MTPATEPCO (Japan) ~ 1.8 MTPA Osaka Gas (Japan) ~1.5 MTPACPC (Taiwan) ~ 1.2 MTPA

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Milestones achieved to 3Q11

Ground-breaking and pouring of first foundations at LNG plant site. Fabrication of process trains, tanks and jetty underway

Final delivery of line pipe to PNG for onshore pipeline, over 30km of welding and burial now completed

Construction of Caution Bay offshore pipeline support site

Continued early construction activities in Highlands (incl. earthworks at Hides plant site and Komo airfield, road and bridge upgrades)

Completion of offsite fabrication of new CALM Buoy for Oil Search PL2 Life extension project, shipped in October

Successful production tie–in for future gas facilities completed on Oil Search operated Associated Gas project

Completion of training facilities at Juni in Highlands

Ramp-up in PNG workforce and use of PNG suppliers. Total workforce at end June of 9,300, of which 6,600 were PNG nationals (71%)

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Focus items for 4Q11/early 2012

Community engagement

Working with new Government to ensure continued alignment and delivery of obligations

Wellpad and Hides spine road development

Installation of new CALM buoy for Kumul loading terminal

Continued onshore pipeline installation and commencement of offshore pipelay

Continued progress at LNG Plant site

Rig mobilisation and arrival, commencement of drilling

Strong A$ - pressures easing

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Timetable

8

2010 2011 2012 2013 2014

FinancialClose

•Complete pipe lay•Ongoing drilling•Complete Hides plant•Commission LNG plant with Kutubu gas

•Ongoing procurement and mobilisation

•Airfield construction•Drilling mobilisation•Start offshore pipeline construction

•Onshore line clearing and laying

•Start LNG equipment installation

•Continued early works•Detailed design•Order long leads and place purchase orders

•Open supply routes•Contractor mobilisation•Commence AG construction

First Gas from Train 1,

then Train 2

•Complete AG •Continue onshore pipe lay

•Complete offshore pipe lay

•Start Hides plant installation

PNG LNG Plant Site

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February 2011

July 2011

PNG LNG Plant Construction

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Marine jetty piling

Process pipe rack construction

Largest OSH Drilling Programme

Embarking on one of the largest drilling programmes ever undertaken, starting 4Q11 continuing through 2012, into 2013

Multi-TCF risked potential for gas and several hundred millions of barrels of oil potential

Appraisal and development drillingHides

P’nyang

Kutubu, Moran and likely Mananda

ExplorationTrapia (PRL 11)

Near field oil exploration

Gulf Area drilling, subject to final seismic results

Taza, Kurdistan

Potential to underwrite continued gas commercialisation and short-medium term oil production

1111

Kumul Terminal

Port Moresby

7°S

Juha

PRL08

PPL240

PRL11

PDL7

PPL239 PDL1

PRL02

PDL2

PDL4PDL3

PRL09

PDL6

PDL5

PRL14

PPL260

APPL249

APPL250

233

PDL9PDL8

PPL233

APPL386

PPL219

LNG Facility

Gulf Offshore

6°S

8°S

9°S

PRL01

PPL234

PRL10

PPL244

Kiunga

Kundiawa

Mt. Hagan

Mendi

Kerema

Pandora

SE Mananda

Uramu

100km

Madang

Daru

Wabag

Gobe

PPL276

PPL338

338

338

338

PPL339

339

339

339

PPL339

339

PPL312

339 339

PPL260

Kopi Wharf

145°E 146°E144°E143°E 147°E

Kimu

PRL3

APPL385

240

240

V.

PNG LNG Expansion

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Lae

LEGEND

Oil Field

Gas Field

Prospect

Oil Pipeline

Proposed Gas Pipeline

Major Road

P’nyang

Mananda 5 Kutubu, Agogo & Moran

Gulf Onshore

Hides

ExplorationGas Resources

PNG LNG ProjectGas Resources

Non PNG LNG Gas Resources

Barikewa

AngoreKomo Airstrip

Hides GasConditioning Plant

Elk/Antelope

Trapia

PNG LNG Expansion

Integrated exploration and appraisal drilling programme in the HighlandsResults by mid/late 2012Upside in Associated Gas fields:

Detailed evaluation ongoing by Oil SearchTargeting alignment with PNG LNG Co-Venturers in 2012

Hides Gas Water Contact Well:Hides development drilling scheduled to commence in late 2011, Gas:Water Contact well planned early in drilling sequenceOptimisation with logistics and construction (Komo and HGCP)

P’nyang and Trapia (formerly Huria) wells targeted for 4Q11 and 1Q12 spud respectively

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PNG LNG Expansion

P’nyang (PRL 3) ExxonMobil 49%, Oil Search 38.5%, JX Holdings 12.5% Appraisal well scheduled for 4Q11Targeting southern fault block Aim is to move 3C to 2C and increase 1C resourcePotential 2C of ~2 tcf

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Kumul Terminal

Hides

Kutubu

P’nyang 100km

SE Gobe

7°S

6°S

8°S

145°E144°E143°E142°E

Moran

Agogo

Juha

Angore

PNG LNG Expansion

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Trapia 1 (PRL 11)Oil Search 52.5%, ExxonMobil affiliates 47.5% Exploration well scheduled for 1Q12

Series of prospects in area:

Reasonable seismic but structural uncertainty remainsMulti-tcf potential in areaPartial dependency. Exploration potential remains in event of success or failure at Trapia

Kumul Terminal

Hides

Kutubu

PRL11

10km

SE Gobe7°S

6°S

8°S

145°E144°E143°E142°E

Moran

Agogo

Juha

Angore

Gulf Area LNG Opportunity

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PPL260

Kumul Terminal

PRL01

PPL234

PRL10

9°S

145°E 146°E144°E

Pandora

Gobe

Uramu

PPL276

PPL312

PPL338

PPL339

PPL339

339

339

338

338

338

339

339

339

3398°S

7°S

339

PPL244

50km

3D Seismic Regions

3D Seismic Regions

2D Seismic Lines

2D Seismic Lines

Multi-licence, multi play type, multi well opportunity being developed

Large, modern 3D seismic dataset acquired to unlock potential of Gulf

All offshore data complete and being interpreted. Results of initial interpretation are encouraging

2D onshore in PPL 338 and 339 seismic processed, interpretation underway

Rig options and timing being assessed

Long lead item procurement process commencing

Elk/Antelope

Flinders

Gulf Area LNG Opportunity

Prospectivity:Targeting 4Q for initial assessment of prospectivity across all licencesFinal views by year end

Partnering:Discussions initiated and ongoing with potential strategic farm-in partnersInternational interest heightened by InterOil sale process

Drilling:Planning ongoing:

Well design commencedLong lead item procurement process commencedSite survey planning Rig selection and sourcing discussions ongoing

Timing:Targeting 2012. Timing dependent on:

ProspectivityRig selection and availabilityStrategy selected Status of partnering discussions

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PPL 244 – Flinders Fan

Preliminary interpretation of seismic over Flinders indicates potential hydrocarbon bearing sands

Larger areal extent than previously thought

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A

B

Flinders FanMaximum Seismic Amplitude

BAFlinders Fan

Kurdistan - Taza PSC

PSC signed after exercising Option Agreement

Oil Search entry as Operator in extremely active Kurdistan Region of Iraq

Very prospective location adjacent to three fields

Large, simple 4-way dip closure identified from 2010 seismic

Well scheduled to spud in 1H12

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TazaProspect

Kor MorGas Field

PulkhanaOil Field

JamburOil Field

Taza PSC

Tunisia

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2010 seismic evaluation complete. Infill line being conducted in 4Q11Large structures mappedProven plays present and new deep gas play developedPrime prospect in Tajerouine permit has potential for >100 mmstb oil and >400 bcf gasFiscal regime favourableProspect sizes commercially attractiveExploration well to be drilled in late 2012

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~10km

Tajerouine

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Oil Search Production

2008 2009

8.607.66

2010

8.12

2011

6.2-6.7

2012 2013 2014 2015 2016 2018

25Net Production (mmboe)

0

5

10

15

20

MENAHides GTESE ManandaSE GobeGobe MainMoranKutubu

2017

2011/12 Development & Near-Field Appraisal Drilling Activity

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PRL08

PPL240

PRL11

PRL12

PPL239 PDL1

PPL233

PPL219

PRL02

PDL2

PDL5PDL6

PRL09

PRL14

PPL260

APPL386

PDL4

PDL3

PDL4

PRL12

50km

AngoreJuha

Hides

SE Mananda

PPL240

PPL233

APPL350

6°S

143°E 144°E

7°S

Usano:2011 : 1 well, 1 workover2012 : 1 well

Kutubu:2011 : 1 well, 1 workover

Agogo:2011 : 1 well2012 : ±1 well

Moran:2012 : 1-2 wells

SE Gobe:2011 : 3-4 workovers

Gobe Main:2011 : 1 workover

Mananda 5

Near Field Exploration

Detailed review of “near field” exploration potential in and around existing producing fields as part of 2010 strategic reviewMore than 25 opportunities identified. Recent successes support new structural modelPotential:

125 mmboe net (approximately half oil, half gas)

Higher risk than historical development drilling:Difficulty imaging Untested reservoir properties Complex geology

Risk management:Integrating with existing pads and wells to reduce costFall back of safer, conventional proven targetsStep wise approach, building out from known positions

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Near Field Exploration

Focused on:Deeper Koi-Iange play:

Potentially underlies all producing reservoirsPenetrated by IDT 25, due to be tested in 4Q 2011

Forelimb play:ADT 2/Hedinia 10 lookalikes Agogo 6 due to spud shortly

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Play extensions:Based on detailed remapping and 2011 seismic Potentially SE Mananda and Kube Kabe (north of Kutubu)

Footwall targets:Hedinia, Moran, Mananda

FootwallsForelimbs

Deeper targets e.g.Koi Iange

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Hedinia 10 ST3 Discovery

Kutubu oil field

Sub-thrust forelimb

Hedinia 10 drilled beneath Kutubu oil field to test structure analogous to Agogoforelimb discovery (ADT 2ST3)

Hedinia 10ST2 & 3 confirmed oil in Toro reservoir

Preparations underway to complete Hedinia 10 ST3 well as an oil producer, tied in to existing PDL 2 surface facilities

First oil by end of November

Full extent of discovery will be assessed following post-well analysis and early production performance

ST1

ST2ST3

%,

1

1

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k

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1ª

ª '

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k

1 '

''

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'

PDL 2

PDL 6 PDL 5

AHT 2

AHT 1ADT 2

ADT 1ADD 3

ADD 1

Moran 9

Moran 8Moran 6X

Moran 4X

Moran 13

Moran 10

Moran 14

Moran 12

ADD 1ST1

Moran 12A

Moran 14A

Mananda 5

Mananda 3X

Mananda 4X

Mananda 2S

SE Mananda 5SE Mananda 3SE Mananda 4SE Mananda 2X

Mananda 3XST1

SE Mananda 1X

PPL 219

PPL 287

PPL 233 PPL 378

APF

143°5'E143°0'E142°55'E

6°10'S

6°15'S

6°20'S

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Mananda 5 Discovery

25 mmboe discovery, ~50:50 oil:gasConfirmed oil in Toro A, B & C Ambiguous in Imburu & Digimu 3 year Licence Extension offered by DPE. Declaration of Location gazetted

Subsurface, engineering and in-country issues evaluation ongoingDecision made to acquire new grid of 2D seismic lines. Acquisition to start late 2011

PotentialPipeline Route

0 2 4 61 Km

SE MANANDA

MORAN

AGOGO

2011-12 Seismic Survey

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2011/12 Focus Areas

Maintain OSH’s industry-leading safety performance in high activity environment

Strong commitment to cost effectiveness

PNG LNG Project commitments driving operational developments:

Deliver the Associated Gas Project as planned

Improved reliability and long term integrity

Life extension programmes for facilities

Upgrade of key systems and processes

Enhanced development of personnel

Continued focus on capturing additional in-field and near field reserve opportunities

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PNG Operating Environment

PNG has built enviable investment record of fiscal stability in resources sector over past 15 years

Unprecedented investment now taking place in oil, gas and mining, encouraged by attractive fiscal policy and stability

History of constructive dialogue between industry and Government to manage issues and expectations

Anticipate that this will continue with new Government, led by Prime Minister Peter O’Neill

Rapidly changing economic and social landscapeChanges in traditional tribal culture

Increased expectations and opportunities

Education and communications

Focus on improving benefits distribution system, transparency and service delivery

Strong support from landowner leaders and key institutions

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Managing Operating Risk

Oil Search has increased its focus on managing in-country issues

Seen as key way to mitigate operating risk

Expanded Sustainability Group is focusing on:Government/regulatory

Promoting transparencySovereign wealth funds Supporting benefits distribution processProviding support to PNG Government bodies, when appropriate

Relationship building between Government, Landowners and other businesses

Oil Search Health Foundation:Expanding the successful OSH model for health programmes to other areas of PNGNominated as Principal Recipient for grants from The Global Fund to deliver HIV and malaria programmes

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Summary

Delivery of PNG LNG underway:

Robust project

Outside crowded Australian LNG space, conventional onshore gas, limited technical risks

High quality Operator, making good progress towards first sales in 2014

Largest ever drilling programme

Oil fields generating strong cash flows. Production impacted by associated gas construction in 2H, but expect production to remain flat in 2012/13 despite field maturity

PNG challenging environment, increased focus on managing risk

Balance sheet remains strong, ample liquidity to meet LNG obligations and to mature expansion activities

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

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