Asset Visibility and Profitability 12 November 2008

Improving reservoir management through improved data accuracy Optimizing well uptime Managing joint venture operations Optimizing hydrocarbon accounting workflows Objectives

FINANCIALS LAND ASSET MANAGEMENT REVENUE BASE: Agreements Parties ReportCentersOwnershipCodes GIS Enterprise Land AFE JVA Production Sharing Contracts Asset Profitability Statement PRODUCTION Sampling & Analysis Field Operations APM Terminal Management First Purchaser Production Management Planning & Forecasting Allocation Process Modeling Assets Inventory WellInfo Partner Balancing Revenue Acctg Regulatory Reporting GL AP AR HR Procurement ICM UPK O&GHierarchies Dual Acctg EDV Transactional Reporting Management Reporting Variance Reporting DBI Portal Production Reporting Operational Intelligence Projects BUSINESS INTELLIGENCE, ANAYLITICS AND REPORTING Fully Integrated Solution for Optimized Oil & Gas Workflows ERP

Integrated Joint Venture Accounting Efficient Distribution Processing & Invoicing Seamless Integration w/ Financials Integrated Processes (Source Data) Multi – Level Cost Allocations Multi – Level Cost Allocations Data Consistency and Accuracy Effective Dating APIs Process Workflows Process Workflows Data Management JVA Agreements JVA Agreements Overhead Cash Calls Cash Calls Processing Efficiency Across Multiple Disciplines Operational Insight LOS DBI Financial Results SBVs KPIs JVA DataMartA dHoc Reporting Financial Integration Financial Integration Mid-Month Distributions Mid-Month Distributions PO INV AP GL

JVA & Financials Integration Automatic Issuance of PO JIB Accounting Info Automatically Available in GL GL PO Electronically Sent to Supplier Asset Automatically Available in Fixed Assets FA JVA/AFE AP Billable Transactions are transferred to JIB for Distributions Asset reduced by Joint Interest Ownership Joint Interest Distributions transferred to GL Requisition Entry Goods Received in Inventory & Accrued INV Invoice Automatically Generated & Sent to AR Automatic Generation of Invoice AR Receipts Matched to PO PROJECTS Cutback Entries Reclassification Material Transfers

Joint Venture Accounting:  Agreement Driven  Overhead  Allocations  Payouts  Cash Calls  Utilization  JIB Invoices and Statements  Re-bill  Workflow enabled  Integrated with AP, Projects, AR, GL, FA  APIs for Third Party Applications

Data Collection Imported Manual Input Sales Allocations Sales Allocations Data Consistency Effective Dating APIs Integrated Workflows Integrated Workflows Data Management Cash Management Cash Management Online Sourcing Agreement Based Agreement Based Processing Efficiency Across Multiple Disciplines Operational Insight Regulatory Compliance Financial Results SBVs KPIs AdHoc Reporting Integrated Revenue Processing Efficient and Precise Distribution Processing and Reporting Integrated Data Financial Integration Financial Integration Funds Distribution Funds Distribution

Revenue Accounting:  Agreement Based  Process Driven  API Facilitated  Seamless Integration  Sales Allocations  Well Balancing  Accruals  Cash Matching

Data Collection API Import Volume Allocations Volume Allocations Cost Allocations Cost Allocations Agreement Requirements Agreement Requirements Auditability Version Control Agreement Management Visibility Category Management Online Sourcing Production Analysis Processing Efficiency Across Disciplines Operational Insight Forecasting Statements Compliance Process Output Integrated Exploration-to-Entitlement Workflow for Production Sharing Agreements Efficiently Process, Analyze and Settle Production and Costs Native Integration Manual Input Calculation Flexibility Calculation Flexibility AdHoc Reporting Record History

Global Access: Visibility, Control, Efficiency Automate Processes National Oil Company Foreign Oil Company Identify issues early Enable real-time information access & agreement mgmt. Consolidate global requirements Unify corporate reporting Consolidate and reconcile information rapidly Automate business processes and broaden data reusability Simplify obligation processing while utilizing calculation flexibility Leverage best practices from different groups / regions Visibility Efficiency Improve Transparency of Business Centrally Manage Policies and Procedures Integrate and centralize business operations Document processes and support compliance View, test and certify internal controls Manage corporate communications Control Entitlement Expenses Production

Production Sharing Agreements Volume details and summaries received from Production Source Booking and Summary level expenses from Cost Module Lifting Data Production Sharing Agreement Process CONTEXT_NAMECONTEXT_VALUE GROSS_PRODUCTION PRICE_PER_UNIT65 GROSS_REVENUE OUTPUT TABLE Production Sharing Agreement Statement User defined equations Entered into the PSA module

Production Sharing Statement (English Version)

Production Sharing Statement (Arabic Version)

Audit Reporting

Key Features and Benefits of EU Production Sharing Agreements:  Agreement Based  Process Driven  Native Integration  API Facilitated  Auditable - Visibility of Data and Equations  Flexible Calculations  Helper Functions  Reusable Equation Management  Estimation, Forecasting and Actuals  Version control  Historical Data

 Leverage Existing Components  Security, Parties, Agreements, Report Centers, Codes  Fully productized and supported by P2ES  Documentation / On-Line Help  Allows Internal Specialists to focus value-added tasks  Uses standards and addresses dependencies  Automatic upgrades to ensure software is compatible with newer releases of Oracle Applications and Database  Common code set used by multiple clients  Receive enhancements funded by other clients  SIG participation Additional Benefits

OIL & GAS HIERARCHY

Asset Profitability Statement (APS)

Benefits Flexible report layout definition customizable by each client Multiple Layouts for LOS and OPR reports Flexible grouping, cross referencing, and roll up of financial accounts Flexible roll up providing options for using multiple Report Center (RC) Hierarchies Summary or Detail Reports at any RC hierarchy level within a chosen hierarchy Trend capabilities (Activity versus GL dates; Operated, Non- Operated or Both) Historical reporting Fast response times

WORKFLOWS & BUSINESS INTELLIGENCE

PROCESS WORKFLOWS

BUSINESS INTELLIGENCE

Comprehensive Business Intelligence Pre packaged Reporting Advanced Analytics Ad Hoc Query & Reporting Performance Dashboards Information Consumers Managers and Executives Line of Business Analysts Financial Analysts

August 27, 2006: ESM007: Welcome Operations Petroleum Place Energy Advisors The Oil & Gas Asset Clearinghouse Bloomberg.com: Energy Oracle Production Data Production LAND Joint Interest AFE Revenue Regulatory OP Performance ED’s Reports Reporting Financial Intelligence Operational Intelligence Human Resources Help Desk Services I Procurement Workflow Personal Workbench AFE Approval Workflow Ownership Portal I-Expenses Preferences Welcome to Upstream Dashboard Oracle Financials Enterprise Upstream: BASE Enterprise Upstream: LAND Enterprise Upstream: JVA Enterprise Upstream: AFE Enterprise Upstream: REVENUE Enterprise Upstream: REGULATORY REPORTING Links

Daily Business Intelligence

DBI: KPIs – Asset Profitability Analysis Tied to Oil & Gas Hierarchy Production, Revenue and Expense Views

DBI: Drill Down - Production Level Detail Grouped by Selected Completions Production Trend Analysis

DBI: Drill Down - Production Level Detail – by Product Grouped by Selected Completions Production Comparison

DBI: LOE Analysis by Well for All Expense Categories

DBI: Drill Down to Expense Category Detail

DBI: Drill Down to Supplier level information.

Oil & Gas Analytics

Intervention Details shows Contractor, Equipment used And cost breakdown

Shows contractors used in the past Equipment variance Labor Variance

OFS C has lowest cost and has a Good variance history

OFS F and C both rank The best for Labor performance

There is no contract with OFS F

OFS C has a contract and good performance