Mozambique Second License Round Overview - AAPG 2006

Mozambique Second Licensing Round The Mozambique License round which was focussed on the under explored Rovuma Basin (both onshore and offshore) in the Cabo Delgado Province of Northern Mozambique, The license round used integrated geotechnical studies carried out by PGS Reservoir based on the available seismic program together with gravity, magnetic and satellite data. These studies show the offshore sector of the Rovuma Basin to be extremely prospective and identified potential for commercial hydrocarbon accumulations. The license round has been a tremendous success for Mozambique and the Institute of National Petroleum.

Introduction to Mozambique Location: South-eastern Africa Land area: approximately 800,000 Km2 Coastline: Approximately 2,700 Km Onshore sedimentary area: 290,122 Km2 Offshore sedimentary area: 282,227 Km2 Population: 19.420.036 (2005 - INE) Climate: Sub-tropical to tropical Capital: Maputo Over 60 Rivers & Lakes Official Language: Portuguese Natural Resources: Hydropower, natural gas, coal, minerals, raw wood, agriculture Export: prawn, cashew, sugar, tea, coconut oil, cotton Currency: Metical (MZM) PIB per capita: US$ 236.9 (1998) PIB growth: 9% (1999) MOZAMBIQUE MAPUTO INP_ Instituto Nacional de Petróleos

Mozambique 2nd License Round Rovuma Basin The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles). The Rovuma Basin extends from the port of Nacala in to Southern Tanzania. The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles).

Mozambique 2nd License Round Rovuma Basin The Rovuma Basin is about 400 km long and 160 km wide (250 by 100 miles). The Rovuma Basin extends from the port of Nacala in to Southern Tanzania. The basin is located both onshore and offshore and within Mozambique covers over 30,000 sq.km (12,000 sq. miles). The Rovuma basin has been divided into seven areas, one area onshore and six areas offshore

Mozambique Second License Round – Rovuma Basin Over 36,000 sq km Under explored Water depths from 0 to >2,500m Deep water never licensed Onshore - 15,122 sq km Area 1 - 10,683 sq km Area 4 - 17,646 sq km Area 3 - 6,089 sq km Area 6 - 9,161 sq km NB: Areas 2 & 5 Hydro

Contracts Available in Mozambique Petroleum Operations in Mozambique may only be conducted in accordance with either a: Reconnaissance Concession Contract Allows the holder the right to conduct preliminary work and assessment operations in the area subject to the Concession Contract. Is executed on a basis of exclusivity for a maximum two-year period and permits the drilling of wells to a depth of 100 meters below the surface or the bottom of the sea. Exploration and Production Concession Contract An Exploration and Production Concession Contract gives an exclusive right to conduct Petroleum Exploration and Production activities as well as the non-exclusive right to operate petroleum pipelines. Petroleum Pipeline Concession Contract A Petroleum Pipeline Concession Contract grants the right to construct and operate an Oil Pipeline or a Gas Pipeline for the purpose of transporting Crude Oil or Natural Gas in cases that such are not covered by an Exploration and Production Concession Contract.

Schedule – Mozambique Second Licensing Round 15th July - Second License Round Announced 14/18th Nov - Clarification Meetings 31st January - Applications submitted 6/16th February - Company Technical Presentations 15th March - Award Letters ( EPC negotiation ) May / June - Signing Ceremonies, Maputo

9/14/2018 9:02 AM TECHNICAL DATA

9/14/2018 9:02 AM Rovuma Technical Data All Technical Data was made available for the bidding round: Data Rooms London (PGS) & Maputo (INP) Landmark Project SMT Kingdom Project Data Packages include: Information CD (Application Guide & Petroleum Law)) Technical (Interpretation) Reports Digital Well Data Digital Seismic Data Potential Field Data Field Work / Field Visits

Existing Technical Work 9/14/2018 9:02 AM Existing Technical Work The technical work programme from 1998 onwards was carried out by PGS Reservoir for Lonropet. Geophysics Report Interpretation of the 1998 Marine Seismic Program (3 Volumes) Geology Reports Field Work Report I 1996 Field Work Report II 1999 Field Work Report III 1999 Field Work Report IV 2000 Field Work Interpretation Report 2000 Geology of the Rovuma Basin 2000

Mozambique Technical Data New Digital Database Index Technical Reports (new digital library) Presentations GIS (Geographic Information System) Well Data Seismic Data Potential Field Data (Gravity Magnetic) Satellite Data Field Work The round has funded the creation of modern “Digital Database” for INP

9/14/2018 9:02 AM Technical Summary The initial exploration of the Rovuma Basin has shown it to be a multi-play and multiple prospect area with direct HCI’s Exploration in the Rovuma is high risk but high reward The most outstanding features identified are the “Tertiary Delta” in the north and the “Ibo High” horst trend in the south Sedimentary basin extends into Mozambique Channel offering multiple play potential with evidence of effective petroleum systems in deep-water areas Source and Reservoir rocks have been sampled and identified within the Rovuma Basin The Rovuma Basin has the potential to contain a world-class hydrocarbon accumulation

NEW APPLICATION DOCUMENTS 9/14/2018 9:02 AM NEW APPLICATION DOCUMENTS

APPLICATION DOCUMENTS 9/14/2018 9:02 AM APPLICATION DOCUMENTS Appendix A - Applicant Details and Financial Information Appendix B - Technical Application Summary Appendix C - Financial Proposal Appendix D - Health Safety Environment

Technical Application Summary 9/14/2018 9:02 AM Technical Application Summary

Applicant Details and Financial Information 9/14/2018 9:02 AM Applicant Details and Financial Information APPENDIX A Appendix A contains financial information about the applicant and is required to support applications for a Reconnaissance Concession Contract, an Exploration and Production Concession Contract or a Pipeline Concession Contract. Where there are two or more companies on an application, we require an Appendix A from each company separately.

Technical Application Summary 9/14/2018 9:02 AM Technical Application Summary APPENDIX B Appendix B demonstrates the applicant’s plans to work and evaluate the acreage. Note this forms a crucial part of the application – see evaluation criteria.

Financial Proposal APPENDIX C 9/14/2018 9:02 AM Financial Proposal APPENDIX C The proposal of the applicant for work and minimum expenditure in respect of the exploration area (s) specified in the application must be stated. Definite proposal with respect to all negotiable items as contained in the Model Exploration and Production Concession Contract must be stated, including bonus payments, training, institutional support that may be applicable.

9/14/2018 9:02 AM Appendix C

9/14/2018 9:02 AM Appendix C TRAINING Annual contribution for INP staff training & development INSTITUTIONAL SUPPORT Contribution to build expertise and capacity within the whole of the Mozambique Petroleum sector SOCIAL SUPPORT Recent introduction no historical figures available

Application Guidelines 9/14/2018 9:02 AM Application Guidelines INTRODUCTION LEGAL & FISCAL DOCUMENTS APPLICATION DOCUMENTS SUBMITTING AN APPLICATION BID EVALUATION CRITERIA GEOTECHNICAL DATA

Mozambique Second License Round “may, I also take this opportunity to congratulate you on the quality of the data packages and the organisation of the data rooms for the Rovuma Licensing Round, both were first class and clearly demonstrate to the oil industry the professionalism & enthusiasm of the INP.” Nigel Hanwell Hardman Resources Ltd.

9/14/2018 9:02 AM Applications

Mozambique Second Bid Round - Applications Seven bids were received by INP

EPC – Example Work Program EXPLORATION WORK PROGRAM (maximum term of 8 years) Initial Exploration Period - 24/36/48 months 2nd Exploration Period - 12/24/36 months 3rd Exploration Period - 12/24 months DEVELOPMENT & PRODUCTION (maximum term of 30 years)

BID EVALUATION CRITERIA 9/14/2018 9:02 AM BID EVALUATION CRITERIA The technical competence and financial strength of the applicant to be able to carry out exploration and production of hydrocarbons to legal requirements and industry standards. The technical database used in making the application. Minimum work program and exploration expenditure. Preference will be given to bids that include 3D seismic over identified prospects and commitment wells. Economic terms offered by the Company. Strength of the proposed Health, Safety and environmental protection. Level of institutional support and training. INP publish final details of the evaluation criteria by the end of October 2005. Important Note: INP encouraged companies to present a technical proposal that will maximize the knowledge of the petroleum potential of the Rovuma Basin.

9/14/2018 9:02 AM Bid Evaluation The bids have been evaluated against the following criteria. Company Strength Technical Expertise Technical Work Program Financial Proposal HSE

Mozambique Second Bid Round – Results Onshore - Artumas Area 1 - Anadarko Area 4 - ENI Area 3 - Petronas Area 6 - Petronas Area 2 - Norsk Hydro * Area 5 - Norsk Hydro * * Areas previously awarded

Artumas + Petrobras + Rockover 9/14/2018 9:02 AM Onshore Area Onshore Area Artumas + Petrobras + Rockover

Onshore Area - Artumas Onshore Area - 15,122 sq km 9/14/2018 9:02 AM Onshore Area - Artumas Onshore Area Ref: Artumas Press Release – March 9th 2006 Onshore Area - 15,122 sq km Work program includes; 250 km 2D 1 well (11,500 feet) The Onshore Area offsets Artumas Mnazi Bay concession in Tanzania The Area contains the Mocimboa-1 well www.artumas.com

Well Ties Mocimboa 1 - Esso / Shell 9/14/2018 9:02 AM Mocimboa-1: the only well drilled in the Mozambican part of the basin, drilled onshore by Esso to a TD of 3,493m in 1986 with strong gas shows, and possibly condensate in Albian sands (fan complex).

Reprocessed – Onshore Seismic Data 9/14/2018 9:02 AM Reprocessed – Onshore Seismic Data

9/14/2018 9:02 AM Field Work Summary Sampled potential source rocks within the Cretaceous. Sampled good quality reservoir rocks with high porosity Sampled several oil seeps Sampled gas seeps Discovered Jurassic sediments within the Rovuma

Anadarko + Artumas ENI + Petrobras 9/14/2018 9:02 AM Area 1 Area 1 Anadarko + Artumas ENI + Petrobras

Area 1 - Anadarko Area 1- 10,683 sq km Water Depth - Onshore to 1,800m 9/14/2018 9:02 AM Area 1 - Anadarko Area 1 Ref: Anadarko Press Release – March 8th 2006 Area 1- 10,683 sq km Water Depth - Onshore to 1,800m Work Program Includes 7 wells 2D Seismic 3D Seismic 4 year initial period www.anadarko.com

Rovuma Basin Play Fairways 9/14/2018 9:02 AM Rovuma Basin Play Fairways Rovuma Delta Reservoirs and seals Tertiary deltaic sands Seals Tertiary marine shales Source Jurassic and Cretaceous shale Ibo High Reservoirs Karroo, Jurassic & Cretaceous Seals Karroo intraformation shale Transgressive Jurassic and Cretaceous shales Source Karroo shale Middle to Upper Jurassic Palma Embayment and Rovuma Basin shale Note: Map shows old Lonropet Permit

Play Types: Tertiary Delta Area 9/14/2018 9:02 AM Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area 9/14/2018 9:02 AM Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area 9/14/2018 9:02 AM Play Types: Tertiary Delta Area

Play Types: Tertiary Delta Area 9/14/2018 9:02 AM Play Types: Tertiary Delta Area

9/14/2018 9:02 AM Area 4 Area 4 ENI

Area 4 - ENI www.eni.it Area 4 – 17,646 sq km Deep Water Rovuma Basin 9/14/2018 9:02 AM Area 4 - ENI Area 4 Ref: ENI Press Release – 10th March 2006 Area 4 – 17,646 sq km Deep Water Rovuma Basin (> 2,600m) “This initative is part of ENI’s strategy to identify new areas with high potential. Area 4 lies in a completely unexplored and high potential geological basin” www.eni.it

Rovuma Basin Area 4 - ENI W E 9/14/2018 9:02 AM 6.0 3.0 9.0 10 km ‘DAVIE GRABEN’ OLIGO-MIOCENE UNC TOP CRETACEOUS BREAK-UP UNC BASEMENT ROVUMA SHELF ‘DAVIE HIGH’

9/14/2018 9:02 AM Area 3 6 Area 3 & 6 Hydro + Petronas

Area 3 - Petronas Area 3 - 6,089 sq km Area 6 - 9,161 sq km 9/14/2018 9:02 AM Area 3 - Petronas Area 3 6 Area 3 - 6,089 sq km Area 6 - 9,161 sq km No Petronas press release available www.petronas.com

Note: Map shows old Lonropet Permit 9/14/2018 9:02 AM Areas 3 & 6 Half Graben Leads Very limited seismic data Note: Map shows old Lonropet Permit

Area 3 & 6 – East West Seismic Line 9/14/2018 9:02 AM Area 3 & 6 – East West Seismic Line

Mozambique Second License Round Summary Mozambique Second License Round

Rovuma Basin Work Program Summary Environmental Studies Drop Core Sediment Evaluation 9 confirmed wells to be drilled in the Rovuma Basin > 4,000 sq km of 3D seismic data > 10,000 km of 2D seismic data All existing seismic data to be reprocessed Total confirmed expenditure for the first exploration period will be a minimum of 314 million dollars INP will release further details on signature of the EPC

Rovuma Basin Work Program Summary TRAINING Contribution for INP staff training & development Bids Total ~ 1 Million Dollars per year INSTITUTIONAL SUPPORT Contribution to build expertise and capacity within the whole of the Mozambique Petroleum sector Bids Total ~ 2 Million Dollars per year SOCIAL SUPPORT Recent introduction no historical figures available Bids Total ~ 5 Million Dollars over 4 years

What Next ? Mozambique 3rd License Round Mozambique 3rd License Round Under Consideration Increased interest in East Africa Focus on Southern most part of Mozambique

Thank you for your attention 9/14/2018 9:02 AM Thank you for your attention For further information please visit www.inp-rovuma.com