Wheatstone LNG Project Ahmed Khalaf KUFPEC

Wheatstone Project Location Julimar – Brunello Gas Fields Upstream Woodside 65% and KUFPEC 35% Net Reserves – 146 MMboe Wheatstone – Iago Gas Fields Upstream (UUOA) Chevron 80.17%, KUFPEC 8%, TEPCO 10% and Kyushu 1.83% Net Reserves – 139 MMboe Wheatstone – LNG Project Downstream Platform and LNG Plant Chevron 64.14%, Woodside 13%, KUFPEC 13.4%, TEPCO 8%, and Kyushu 1.46%

Development & Status Julimar Phase 1 project progress is currently at 99% 5 wells have been drilled and will be ready for production in Oct 2017 (first cargo) - 15 more by Phase 4 in 2033 Wheatstone Project progress is currently 94.1% vs 95.1% for combined upstream and downstream 9 wells have been drilled in the Iago field (14 wells remaining to be drilled by 2040)

Major Milestones Export loading arms installed on jetty All LNG Modules completed and loaded to site Condensate tanks complete

Significance of the WST Project Started with an exploration block and discovered two fields totaling 146 MMboe in total reserves - Total expenditure in the exploration phase was approx. US$ 300MM The project took 7 years for FID, and 6 years for development – Expected production Oct 2017 – approved development budget of ~US$ 7B Look forward NPV(9)= US$ 3,173MM, IRR= 114.9% Net Cash Flow over life of project ~US$ 9B

Summary The Julimar/Wheatstone-Iago project is currently the biggest and most critical project for KUFPEC It contains the single largest reserve addition to KUFPEC’s books, with a proven addition of 285 mmboe, and will contribute 37,000 BOEPD production by 2019 Being the first LNG project in any K-Company, and working with a major global Operators, Wheatstone will provide valuable information and experience to our employees that can be transferred to the Kuwait oil sector for use in future projects. This project also reflects good practice as a significant investment in a key region with low country risk where KUFPEC is already established and active The Wheatstone project is a perfect example of the core model work within KUFPEC – starting with purchasing a block, studying the seismic, drilling exploration wells, discovery of hydrocarbons… continuing with development and production!

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Backup Slides

Knowledge Monetary KPC Project Cost Management Severe Weather Management Complex Project Management LNG Technology Knowledge Monetary Leverage Opportunity to Bridge Worldwide Natural Gas Demand : CAGR 7-8% Handling Operational Complexity Assured Cash Flow Through Secured Long Term Sales Contracts Opportunity to Bridge Kuwait’s Gas Demand Gap Support Value Primary Value Significant Reserves Base and Long Term Plateau Production

Wheatstone Iago/Julimar – Upstream KUFPEC purchased 35% of block WA-356-P in 2004, partnering with operator Woodside The Julimar/Brunello fields were discovered in 2007 146 MMboe in total reserves JV negotiated with a nearby block operator (Chevron) in order to utilize the infrastructure and downstream facilities Full project development cost, net to KUFPEC was $3.6B Wheatstone-Iago In 2004 Chevron & Shell discovered the Wheatstone and Iago and gas fields, with reserves of 9 TcF (1.55 Bboe) – Net 139 Mmboe to KUFPEC. They proceeded to develop the field and make plans for onshore tie in to an LNG facility (Chevron 65% - Operator) In 2014 KUFPEC acquired Shell’s 8% interest in the Wheatstone-Iago field The approved development budget for the project was $3.5B

Wheatstone LNG Project – Downstream The purchase of the WST-Iago field included a 6.4% share of the Wheatstone LNG Development project The WST acquisition also committed KUFPEC’s Julimar field to a 7% share of the downstream operations This gave KUFPEC a final share of 13.4% from the downstream LNG project

What is LNG? Why invest in LNG? LNG is natural gas that has been converted to liquid form for ease of storage or transport The natural gas is cooled to –162° C in order to liquefy it and shrink its volume Why invest in LNG? Global Gas demand is on the rise Significant reserves World Class Operators & Partners High expected Return on Investments

Project Overview Wheatstone & Iago Gas Fields UUOA (Iago) Project Wheatstone Platform and Trunkline Joint Venture WPT JOA Mutli-User Facilities JV – MF JOA Shared Facilities JV – SF JOA LNG Train 1 and 2 JV – LNG Train JOA Domestic Gas JV – DG JOA Downstream Project/Joint Scope Wheatstone LNG Project Joint Ventures Julimar / Brunello Julimar / Brunello Project Due to the size and complexity of the downstream LNG project, the operator had to separate the workflows under five different JOAs in order to streamline the process and ensure continuous progress