Oil Search LimitedARBN 055 079 868

2014 Annual MeetingA year of transformation

10:00am, Friday 16 May, 2014Crowne Plaza Hotel, Port Moresby, PNG

For

per

sona

l use

onl

y

Oil Search LimitedARBN 055 079 868

Peter Botten

Presentation by Managing Director

For

per

sona

l use

onl

y

Corporate Transformation UnderwayOil Search is in excellent position to build further value for shareholders. Platform of unprecedented strength» PNG LNG Project largely complete, with loading of first cargo underway

» PNG LNG transforms OSH into significant LNG exporter with steady 20+ year cash flow stream, sufficient to fund both growth opportunities and pay materially higher dividends

» Highlands and PRL 15 LNG expansion opportunities being matured. Potential involvement in two, possibly three, additional high returning LNG trains by end of decade:– Possibility of more than doubling production over next 5 – 7 years, off 2015 base

» Taza oil discovery in Kurdistan being appraised, positive results to date

» Balance sheet strengthened by recent placement to PNG Government and SPP

» Strategic Review underway. Will set direction for next five years

3

For

per

sona

l use

onl

y

Core Strategies Have Delivered Steady, Long-Term Share Price Appreciation….

4

-

1

2

3

4

5

6

7

8

9

10

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Shar

e Pr

ice

(A$) Acquisition of

ChevronTexaco’s PNG assets.

Assume Operatorship

Manage transition to PNG LNG Project PNG LNG FID

PNG LNG production commences

PRL 15 acquisition

For

per

sona

l use

onl

y

-

5

10

15

20

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

OSH vs STO vs WPL

…Significant increase in Market Capitalisation..

5

x18.5

x4.2x3.4

Santos

Woodside

Oil Search

For

per

sona

l use

onl

y

0%

500%

1000%

1500%

2000%

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

…Top Quartile TSR Performance Relative to Australian Peers

16 May 2014 6

1,720%

490%324%286%253%

Santos

Woodside

Oil Search

MSCI Energy Index

ASX 50TSR Index

For

per

sona

l use

onl

y

Safety Remains Our Top Priority

0

1

2

3

4

5

6

7

8

9

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1.761.68

1.751.851.96

1.16

6.0

5.2

2.64

4.7

1.74

Total Recordable Injury Frequency Rate of 2.47 for 2013

4.9

2.47

7

InternationalCompanies

(OGP)

Australian Companies (APPEA)

Oil Search

For

per

sona

l use

onl

y

PNG LNG Project

8

For

per

sona

l use

onl

y

Project Update» PNG LNG Project ahead of schedule and expected to

be delivered within November 2012 budget of US$19 billion

» Train 1 in production and start-up of Train 2 expected soon

» LNG loadings have commenced, first shipment to Asian markets expected shortly

» Ramp up to full capacity (6.9 MTPA) in progress

» Hides liquids being blended with oil field production and sold as Kutubu Blend

9

For

per

sona

l use

onl

y

PNG LNG Plant Site

10

Feb 2011

Feb 2014

For

per

sona

l use

onl

y

PNG LNG Plant Site and Jetty

11

Jun 2011

Nov 2013

For

per

sona

l use

onl

y

PNG LNG Spirit of Hela

12

May 2014

For

per

sona

l use

onl

y

PNG LNG Offshore Pipeline

13

Kumul Terminal

Gobe Main

Kutubu

Moran

Onshore pipelineand Infrastructure

Juha Facility

AngoreHidesJuha

Komo Airfield

Hides Gas Conditioning Plant

Agogo

Kutubu CPF

Offshore Pipelay – SEMAC I

Offshore Pipelay – SEMAC I

For

per

sona

l use

onl

y

14

AngoreHighlands section pipeline

Pipeline burial

Mar 2014

PNG LNG Onshore Pipeline

For

per

sona

l use

onl

y

PNG LNG Kutubu

15

PNG LNG Project FacilityMajor Road

Nov 2010

Feb 2013

For

per

sona

l use

onl

y

PNG LNG Komo Airfield

16

Oil PipelinePNG LNGGas PipelineOSH FacilityPNG LNG Project FacilityMajor Road

First Antonov 124, May 2013

Dec 2010

Nov 2013

For

per

sona

l use

onl

y

PNG LNG HGCP

17

Mar 2014Aug 2012

Dec 2010

For

per

sona

l use

onl

y

18

PNG LNG Project Delivery –Ahead of Schedule

» Financial» Close

» Complete pipe lay» Ongoing drilling» Construction of HGCP» 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

» Continue onshore pipe lay

» Complete offshore pipe lay» Start Hides plant

installation» Start Hides drilling» Complete key AG items

2010 2011 2012 2013 2014

» Complete construction and commissioning of HGCP

» Complete Hides production wells

» First LNG sales from Train 1 and then Train 2

For

per

sona

l use

onl

y

PNG Gas Growth

19

Seismic acquisition in PNG Highlands

For

per

sona

l use

onl

y

Gas Growth Strategy» Oil Search looking to leverage

existing LNG infrastructure and skills developed by foundation PNG LNG Project

» Upside in 1P reserves at Hides plus substantial discovered undeveloped gas resources

» Oil Search well positioned to realise value from future phases of development:

– Significant resource and infrastructure owner

– Proven operator (manage ~ 20% of PNG LNG Project gas supply and all condensate export)

20

Port Moresby

Kumul Terminal

PRL08

PDL7

PDL4PDL3

PRL09

PDL6 PDL5

PRL14

260

233

PPL234

PRL10

PPL244

PPL339

339

339

339

PPL339

339

339 339

PPL260

PRL3

PPL385

PDL1

233

PPL277

PPL277

Juha

Moran

Agogo

Kutubu

Proposed JuhaFacility

Hides

Angore

LNG Facility

Gobe Main

Hides GasConditioning Plant

& Komo Airfield

PPL219APDL11

PDL9PDL8

PDL2

PRL15

Undeveloped GasFields

Uramu (100%)

P’nyang (38.5%)

Kimu (60.7%)

SE Gobe (25.6%)

Hagana (40%)

Flinders (40%)

Juha North (24.4%)

Barikewa (45.1%)

Elk/Antelope (22.8%)

For

per

sona

l use

onl

y

Hides Drilling»Six wells at three wellpads

(B,C and D) complete

»Drilling ongoing at wellpad G (NW Hides) and PWD well. Will help constrain gas volume in Hides field

»Hides 5, to explore deeper Koi-Iange reservoir, scheduled to spud 4Q14, subject to JV approval

PDL 1/7 – Hides Field8 New Production Wells

PDL 8 – Angore Field2 New Wells

21

Hides GasConditioning Plant

Komo Airfield

Hides Nogoli Camp

Hides GTE Plant

PWD Well

Hides Well Pad G

Hides 5

/APDL11For

per

sona

l use

onl

y

P’nyang - PRL 3» Key resource to support potential growth from

PNG LNG:– Total 2C recoverable gas resources in P’nyang

field of 2.5 tcf

» Concept selection work well advanced –engineering, environmental and social mapping

» Development work to continue through to submission of PDL application in early 2015

PRL 3 WI %

ExxonMobil affiliates (operator Esso PNG P’nyang Ltd) 49.0

Oil Search 38.5

JX Nippon 12.5

22

For

per

sona

l use

onl

y

Elk/Antelope – PRL 15

23

» Acquired 22.8% gross interest in PRL 15, containing Elk/Antelope gas fields, for US$900 million

» Up to three appraisal wells to be drilled, to prove up sufficient gas resources to support LNG development. First well expected to spud in July

» Substantial exploration and appraisal upside in PRL 15

» Dispute resolution process underway relating to sale of interest in PRL 15 from InterOil to Total SA. Negotiations to achieve commercial resolution ongoing

Port Moresby

Kumul Terminal

PRL08

PDL7

PDL4PDL3

PRL09

PDL6 PDL5

PRL14

260

233

PPL234

PRL10

PPL244

PPL339

339

339

339

PPL339

339

339 339

PPL260

PRL3

PPL385

PDL1

233

PPL277

PPL277

Juha

Moran

Agogo

SE Mananda

Uramu

P’nyang

Kimu

Kutubu

Proposed JuhaFacility

Hides

Angore

LNG Facility

SE Gobe

Mananda 6,7

Gobe Main

PNG LNG ProjectGas Fields

Hagana

Flinders

Juha North

Barikewa

Hides GasConditioning Plant

& Komo Airfield

PPL219APDL11

PDL9PDL8

PDL2

PRL15

Elk/Antelope

PNG LNG ProjectFacilities

Non PNG LNG Gas/Oil Fields

Triceratops

For

per

sona

l use

onl

y

PNG Oil Production

24

Operator of all PNG’s oil fields since 2003

For

per

sona

l use

onl

y

Strong production from PNG oil fields» 2013 production of 6.74 mmboe,

6% higher than in 2012

» Continued success of development drilling and field management activities

» Commissioning gas successfully delivered from Kutubu to PNG LNG Plant (September) and HGCP (December)

» PNG LNG liquids being blended with oil production and sold as Kutubu Blend

2525

PRL8

PRL11

PDL7

PDL1

PPL233

PPL219

PDL2

PDL5PDL6

PRL9

PRL14

PPL260

PDL4

PDL3

PDL4

PDL7

PPL233

PPL277PDL8

PDL9

PRL11

Kutubu

Moran

Cobra

Iehi

BarikewaKimu

SE Gobe

Gobe Main

Agogo

SE Mananda

Mananda 5,6 & 7

Juha

HidesAngore

Juha North

Oil FieldGas Field

Oil PipelinePNG LNGGas Pipeline

OSH FacilityPNG LNG Project Facility

Proposed PNG LNGGas Pipeline

For

per

sona

l use

onl

y

Production Outlook» Production guidance for 2014

increased from 13 – 16 mmboe to 14.5 – 17.5 mmboe due to early delivery of PNG LNG

» Production from oil fields of 6.4 –6.9 mmboe (unchanged), up slightly from 2013

» In first full year (2015), PNG LNG will add ~21 mmboe net to Oil Search production

26

0

5

10

15

20

25

30

2011 2012 2013 2014F 2015F

Kutubu(2)Moran(2)

GobeSE ManandaHides GTE(3)PNG LNG (T1+T2)(1,3)

Net Production (mmboe)

6.386.69

14.5 – 17.5

6.74 6.4 – 6.9

1 LNG sales products at outlet of plant, post fuel and flare2 Oil forecast assumes planned new development wells beyond 20133 Gas:oil conversion rate used in 2014/15: 5,100 scf = 1 barrel of oil equivalent (prior years 6,000 scf/boe)

For

per

sona

l use

onl

y

Oil Exploration

27

Taza 1 well, Kurdistan

For

per

sona

l use

onl

y

Oil Discovery at Taza, Kurdistan:Appraisal Underway

28

IRAN

TURKEY

SYRIA

IRAQJORDAN

SAUDI ARABIA

CaspianSea

PersianGulf

RedSea

KURDISTAN REGIONOF IRAQ

Taza PSC

Erbil OfficeSulimaniyah Office

Taza 2 well, Kurdistan

For

per

sona

l use

onl

y

SE Jambur Lead

Pulkhana

Jambur Kor Mor

Taza 3 Proposed

Taza 2

Taza 5 ProposedTaza 4 Proposed Taza

Taza 1ST2

Oil Discovery at Taza, Kurdistan:Appraisal Underway» Taza 1, drilled in 2013, discovered light oil. Appraisal

programme now underway

» Taza 2 currently drilling to appraise upper intervals and explore deeper targets. Encouraging results to date, with oil found in first reservoir

» Taza 3, to appraise southern part of field, planned for 3Q14, plus two more wells and 3D seismic

» Plan to install Early Production Facility (EPF) on one well in 2015

» 3D seismic acquisition underway, including over SE Jambur lead

» New export pipeline through Kurdistan to Turkey complete. Fiscal issues between Kurdistan and Iraq being steadily resolved

NOTE: Proposed well locations subject to change

29

For

per

sona

l use

onl

y

30

Sustainability Focus

For

per

sona

l use

onl

y

31

PNG Operating Environment» New era of political stability with O’Neill Government

» With transformational PNG LNG cash flows imminent, increased transparency and accountability is key to future stability of PNG:– Adoption of EITI, formation of ICAC represent positive developments

» Good progress made by new Minister for Petroleum and Energy since taking office, but further work to be done on ensuring Project benefits are delivered

» Maintaining fiscal stability vital for future sustained investment in energy sector

» PNG Government shareholding in OSH:– Represents an investment in high returning company with proven track record

– Ongoing alignment between Company and the Government

– Ombudsman enquiry into PNG Government loan welcomedFor

per

sona

l use

onl

y

32

Oil Search’s Commitment to PNG» Oil Search was PNG’s largest single

investor and largest tax payer in 2013:

– ~US$1.6bn spent on development, appraisal, exploration and operations

» Capacity building in 2013:

– 83% of PNG workforce comprised PNG citizens

– US$10.7m spent on delivery of Government infrastructure through tax credit scheme

» Entering a period of heightened expectations from communities in PNG F

or p

erso

nal u

se o

nly

Oil Search’s Commitment to PNG

33

» Comprehensive programme of benefits and social contribution

» Project-related benefits include:– Equity, royalties, development levies, employment, business

development, education, training, health and agriculture

– Delivery of benefits to the whole country

» Other major contributions:– Oil Search Health Foundation

– Tax credit projects (focus on efficient delivery and capacity building)

• Road construction

• Refurbishment of Marea Haus, Lloyd Robson Oval

• Tari Hospital

– Power generation

» Establishment of Public Private Partnerships with National and Provincial GovernmentsF

or p

erso

nal u

se o

nly

Positioning for Next Phase of Growth

» Major Strategic Review underway to set objectives and programmes for Oil Search over next five years

» Review will analyse:

– Asset values and ways to capture full value

– Balance of asset portfolio to deliver growth projects and capital management initiatives

– Company structure, cost base and operating model

– Development of our people and organisation to deliver continued top quartile returns

» Results to be communicated to shareholders in 4Q14

34

For

per

sona

l use

onl

y

Summary

Oil Search has unprecedented platform for further growth:– Delivery of PNG LNG will more than quadruple production 2013 – 2015

– Delivers material cash flow to invest in high returning projects and fund higher dividends

– Assets have potential to underwrite at least two further LNG trains and expansions

– Taza oil discovery has significant potential. Appraisal taking place

– Oil business remains strong

» Balance sheet will strengthen rapidly with LNG revenues

» Strategic Review will provide programme to deliver continued superior returns

35

For

per

sona

l use

onl

y

DisclaimerWhile 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 othergovernment issues and approvals.

36

For

per

sona

l use

onl

y

Oil Search LimitedARBN 055 079 868 www.oilsearch.com

For

per

sona

l use

onl

y