Bahrain: Overview & Future Opportunities Dr Bahrain: Overview & Future Opportunities Dr. Mustafa Al Sayed Chief Executive – The Bahrain Petroleum Company APPEX March 2007

First Discovery Well in Arabian Gulf – Bahrain 1932

Location of Bahrain Offshore Blocks within Petroliferous Gulf Basin BERRI ABU SAFAH SOUTH PARS SAMIN QATIF Block –1 NORTH FIELD DAMMAM Block –2 ABQAIQ Block –3 Block –4 SAUDI ARABIA QATAR AL KARKARA GHAWAR DUKHAN

Current Prospectivity Map Block – 1 Block – 1 2858 km2 Exploration & Production Sharing Agreement (EPSA) Block – 2 2228 km2 Block – 2 Block – 3 1088 km2 Block –4 1478 km2 Prospective Areas

Oil & Gas Zones IOIP MMSTB API TYPE 1300 1103 2905 661 120 6089 5 - 25 20 - 30 32 - 33 36 46 Heavy oil Heavy to Medium oil Medium oil Light oil Gas Cond. Khuff Gas Zones Arab & Minor Zones Shallow Zones Bahrain Zones 1,200 1,700 2,200 4,500 10,000 Average Depth (ft) Aruma & Rubble

Offshore and Onshore Opportunities Recent analysis brought out several new prospects and leads in the blocks Deep gas targets in onshore and offshore are unexplored, but hold significant hydrocarbon resource potential. For Further information visit: www.bahrainoffshorebid.com

Bahrain: Prime Location for Exploration, Why? Strategic location at the heart of the petroleum rich Arabian Gulf Basin. Highly favourable tax environment, with no personal, value-added or withholding tax No restriction on repatriation of capital, profits or dividends Cost-efficient, trained and bilingual human capital Full customs duty exemption on capital goods and goods destined for re-export, raw materials for manufacturing, semi-finished commodities imported for further processing, imports required for development projects, and initial import of capital goods by a manufacturing company Modern high standard of living with a cosmopolitan family atmosphere World class international airport and regional air traffic hub Causeway connection to Saudi Arabia, the largest single market in the region, with new causeway connection to Qatar planned Stable legal and administrative infrastructure, with highly respected National Tender Board emphasizing contractual transparency and fairness. ‘One-stop’ facility for all information and applicant processing needs of investors.

The Way Forward Registeration on www.bahrainoffshorebid.com Shortlisting of applicants Data Room Review – End June 2007 Technical and Financial Bid Submission – End September 2007 Blocks Award – Year End 2007

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