BPRL’s Joint Ventures with Russia & Brazil National Oil companies BRICS Forum on SOE Reforms and Governance Chennai 19th Nov 2016

Russia

Vankor & Taas locations Moscow Vankor Taas

Taas & Vankor acquisitions BPRL, OIL and IOC have purchased 29.9% participatory stake in Taas-Yuryakh and 23.9% stake in JSC Vankorneft from Rosneft. BPRL indirectly owns 33% of the stake, and OIL and IOC each indirectly own 33.5% and of the Indian consortium’s total stake. TAAS Producing asset and one of the largest green fields located in Eastern Siberia Other stakeholders : subsidiary of Rosneft (50.1%) and British Petroleum (20%) Definitive documents for the acquisition of TAAS were signed on 16 Mar 2016 Vankorneft Producing giant oil & gas field, located in Eastern Siberia, contributes to about 10% of Rosneft’s entire oil production - largest field commissioned in Russia in the last 25 years, Other stakeholders : Rosneft (61.1%) and ONGC Videsh Limited (15%) Definitive documents for the acquisition of Vankorneft on 17 Jun 2016 Speaker Notes: Senior management to provide background on JWG / G2G interactions leading up to the transaction as voiceover Both transaction closed on 5th October 2016 3

Field Teams Report… Both the assets are professionally managed. Vankor is a giant field with huge infrastructure in place. All the facilities are well maintained with minimal staff. Both the assets are located in very remote locations with very difficult logistics & harsh climate. However adequate alternates plans for resource mobilization based on weather conditions is appreciable. HSE Policies are in place and followed meticulously. Production : Vankor : 21 MMT/yr ; Taas : 1 MMT/yr (more than half of India’s production)

Vankor Field Central Processing Facility (132 MMbpa Processing Capacity)

Vankor Facilities Free Water Knock Off Facility -South (Capacity of 98 Mmbpa of Oil)

Taas Field Facilities Central Processing Facility

Taas Field Facilities Well PAD

Russia – Dispensations to retain/Increase business partnerships Access to Power of Siberia Gas pipeline (Taas has significant gas resources, which can be monetized if Taas project is given access to the under construction Power of Siberia gas pipeline) MET relief extension (seek time extension beyond 2021 to 2023, till cum production of 25MMT is reached in Taas) Export duty relief (Nil export duty on 6.6 MMT of crude oil (2016-19 production) in Taas, would encourage additional investment in such difficult & complex projects) Reduced rate of Corporate Tax (Current rate : 20%, in Vankor, reduced rate of 15.5% for 4 yrs; request reduced rate beyond 4 yrs)

Brazil

BPRL’s Presence in Latin America BPRL entered Brazil in 2008. Currently PI in 6 deepwater blocks held through a 50:50 JV, IBV Brasil. 7 major discoveries till date. 6 Appraisal Plans approved. Blocks in advanced appraisal and pre-development stages. IBV’s investment is the highest in Brazil’s oil and gas sector by a Indian company.

BPRL’s Assessment and Experience Transparent and fair bid rounds. Attractive and Stable Fiscal regime with ~50% Govt. take. Petrobras is a world class deepwater operator with state of art in-house facilities and expertise. All major fields are located in deep waters. Complex Legal system with pro labour laws. Environmental approvals take time. Local content requirement is difficult to meet. Complex Tax Regime. ANP approvals with regard to PI transfer can take time. New PSC regime had given privileged access to Petrobras ; minimum 30% stake and operator of Pre- salt blocks, although it is being done away with. JVs working very effectively : information sharing & decision making enabled through seamless communication channels like V.Cs and Teleconf , in addition to physical meetings (despite huge geographically distances) – significant cost optimization

Brazil – Dispensations to retain/Increase business partnerships Govt agencies may facilitate Petrobras and consortium in expediting SEAL development Time bound environmental clearance Waiver off the oil circulation tax for deepwater blocks to make the development financially viable Balanced Local content requirement requested. Preferential allotment of Discovered / Producing blocks” to consortium of Indian government held companies

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