Managing Director of NAMCOR NAMCOR ‘s participation in the oil and gas sector in Namibia and beyond Presented by Mr Sam E. Beukes Managing Director of NAMCOR March 22, 2007 Exploring & Fuelling Namibia Robert Mwanachilenga - National Petroleum Corp of Namibia

Presentation Outline Location Map Country Background Information Vision and Mission Statements What are the drivers of this strategy? Oil and Gas Exploration History Upstream Business Activities Current Licensing Situation Acreages with NAMCOR shareholding New Strategic Direction (i) New Government Mandate (ii) License Under Application Joint Acquisition of new Spec seismic Support for expansion drive Robert Mwanachilenga - National Petroleum Corp of Namibia

1. Location Map Namibia Key Figures Land Area: 825 418 km2 Population: 2.03 million (2005 est.) GDP per capita: $2000 Coastline: 1572 km Life Expectancy: 44 years Robert Mwanachilenga - National Petroleum Corp of Namibia

2. Country Information Country Information Robert Mwanachilenga - National Petroleum Corp of Namibia

3. Vision and Mission Statements Our Vision To be a world-class petroleum organisation providing sustainable benefits to all stakeholders. Our Mission By * ensuring Security of Supply, through upstream and downstream operations; * harnessing innovative industry best practices; * proactively embracing international safety, health and environmental protocols; * recruiting and retaining high performing, passionate and competent people. Robert Mwanachilenga - National Petroleum Corp of Namibia

4. What are the drivers of this strategy? A strong drive and support from the principal shareholder for the company to become a fully fledged exploration and production institution Volatility of prices of crude oil on the international market Increasing importance of the security of supply of both crude oil and refined petroleum products for the country A new and a compelling mandate from the principal shareholder for the company to seek E & P and Downstream business both locally, regionally and internationally A strong growth of the company’s portfolio of businesses Strong advocacy from the shareholder for financial self sufficiency and commercialisation Robert Mwanachilenga - National Petroleum Corp of Namibia

5. Oil and Gas Exploration History Initial Oil & Gas exploration started in the 1970’s Kudu Gas Field Discovery 1974 is a direct result of exploration activities in the 1970’s Discovery was made by Chevron Oil Co., Regent Petroleum & Soekor (PetroSA) With independence in 1990 several licensing rounds were held 1st, 2nd , 3rd and 4th Licensing Rounds were Rounds produced a mixed mixture of results, i.e. success and failure A total of 14 wells were drilled in this period offshore alone Country has coastal length of 1572 km An extensive 2D and 3D database been build over the years Country is hugely underexplored Robert Mwanachilenga - National Petroleum Corp of Namibia

Cont’d E&P laws in Namibia do not enforce the participation of the national oil company NAMCOR’s participation (carried basis) has been purely a matter of business discussions between the operator and ourselves Robert Mwanachilenga - National Petroleum Corp of Namibia

6. Upstream Exploration Activities (a) Current Licensing Situation - 13 licenses 05/06 Robert Mwanachilenga - National Petroleum Corp of Namibia

(b) Acreages were NAMCOR has shareholding Block 2814A (Kudu Gas Field) Hunt License Area (Luderitz Basin) Block 1711 (SinteznefteGAs) Owambo Basin License (Circle Oil) Blocks 2813A, 2824B, 2914A (BHP Billiton) Blocks 2416B, 2417 (INA Industrija Nafte) Robert Mwanachilenga - National Petroleum Corp of Namibia

Tullow Oil – Kudu Gas Field (Block 2814A) NAMCOR has 10% working interest NAMCOR will participate in drilling campaign 2 Exploration Wells to be drilled end of Q1,2007 Robert Mwanachilenga - National Petroleum Corp of Namibia

Seismic interpretation being done in London, UK offices Hunt Oil Company NAMCOR 10% carried Seismic interpretation being done in London, UK offices Robert Mwanachilenga - National Petroleum Corp of Namibia

Sintezneftegas – Block 1711 Acreage with highest potential both oil and gas NAMCOR has 7% carried Partners in Block are: SinteznefteGaz 70% PetroSA 10% EnerGulf 10% NAMCOR 7% BEE 3% Drilling of 1st well is planned for 2007 Robert Mwanachilenga - National Petroleum Corp of Namibia

Circle Oil – Owambo Basin FAOC assigned its interest to Circle Oil Namibia NAMCOR has 10% carried interest EnviroDynamics presented Draft EIA report to MME & NAMCOR Seismic survey is planned to start after the rainy season (end of May 07 through to Nov 07) Robert Mwanachilenga - National Petroleum Corp of Namibia

BHP Billiton – Blocks 2813A, 2824B, 2914A Completed 3D Seismic Survey in April 2006 Acquired 1492 sq. km survey BHP Billiton completed Farm Out process New partners: Mitsui Corporation of Japan and PetroSA of South Africa Currently interpreting acquired seismic Potential carried participation for NAMCOR Robert Mwanachilenga - National Petroleum Corp of Namibia

INA Industrija Nafte – Blocks 2416B, 2417 EIA has been completed NAMCOR is discussing participation in the license Hungarian NOC expressed interest in license Seismic acquisition is to start mid April 2007 Robert Mwanachilenga - National Petroleum Corp of Namibia

(c) New Strategic Direction New Government Mandate (ii) New License under application Robert Mwanachilenga - National Petroleum Corp of Namibia

(i) New Government Mandate NAMCOR must actively seek ways and means to become a fully fledged Exploration and Production company NAMCOR must become involved in oil and gas exploration activities in the country (hence the application for the Ondjou Block) NAMCOR must venture outside the country and get involved in joint venture exploration and production activities, be it exploration and/or acquisition of equity in producing assets and so on Company signed MoU with PetroSA (RSA) & ENH (Moz): joint exploration and development of oil & gas opportunities in region Planning visits to Tanzania and Kenya to explore further business opportunities in East Africa Robert Mwanachilenga - National Petroleum Corp of Namibia

(ii) New License under application Ondjou Prospect – Block 2011B and 2111A NAMCOR submitted application for the block March 26-27, 2007 license negotiation meeting with Ministry Proposed Work program Desktop studies of existing data Reinterpretation of existing 2D data AVO analysis: evaluation of lithology and fluids Electromagnetic Survey to determine source maturity and presence of reservoir Acquire 3D data if required Looking for technical partnership to share drilling risks Robert Mwanachilenga - National Petroleum Corp of Namibia

(d) Planning acquisition of new Spec Seismic In order to keep the exploration momentum of 2005/2006 the company is planning: An extensive review of the of the exploration potential of the Namibian margin An expansion of the demarcation of the blocks further into the deepwater section A spec seismic acquisition program in areas with potential but previously not covered by existing surveys. A consolidation and packaging of all datasets with the view to enhance and keep exploration interest high. Robert Mwanachilenga - National Petroleum Corp of Namibia

7. Support for this expansion drive NAMCOR Downstream Business Healthy Balance Sheet Through Strategic Partnership Robert Mwanachilenga - National Petroleum Corp of Namibia

Exploring & Fuelling Namibia WWW.NAMCOR.COM.NA Exploring & Fuelling Namibia Thank you Robert Mwanachilenga - National Petroleum Corp of Namibia