Kinabalu Field - Nafas Baru A Journey – from No Potential to Rejuvenation Every good project needs a slogan “Nafas Baru” - Breath New Life Good in terms of Sabah which known for “land of Wind?” TML commenced operatorship in Dec 2012 This presentation looks at different aspects of that 2 year journey Other keys aspects of Kinabalu Oil PSC 1st brownfield redevelopment in Malaysia Though PM3 is also very much a brown field 1st Progressive Volume Terms PSC 1st transfer of PSC from IOC to IOC and not to PCSB

2012 Kinabalu Oil PSC Overview Location Map Block Details 2012 Kinabalu Oil PSC: Progressive PSC Terms Start Date: Dec 2012 Operator: Talisman (60%) Partner: PETRONAS Carigali (40%) Location 55 km NW of Labuan 28 km SW of Samarang 2 km SE of KNNAG Field Water Depth: 56 m Discovery: 1989 and First Oil: Dec 1997 Cum. Oil Production @1/1/15 = 101.2 MMstb Kota Kinabalu Kinabalu Kimanis SOGT Labuan LCOT & LGAS

The Journey Started with A Vision.. A New Lease of Life to an Ageing Asset Maximizes hydrocarbon recovery to > 40% Smooth transfer of operations Reduce overall costs through innovative solutions Accelerates development schedules Vision for “Nafas Baru”: which was set out in our original BID and included in key conditions of PSC Maximizes hydrocarbon recovery through major capital investment in both IOR and EOR projects Accelerates development schedules to achieve early new oil production (Phased approach) Reduces overall costs through innovations such as an integrated operations model with PCSB Improves uptime and asset integrity to deliver more consistent production Ensures a smooth transfer of operations from the existing operators Improve uptime and asset integrity

“Quintupling” Technical Potential The shared vision with PETRONAS and PCSB has progressively materialized.. After just over 18 months, we have achieved ~20,000 bopd potential through various initiatives 7,200 20,000 Asset Transfer Aug’14 Infill started Prod > 10kbd FDP Production optimisation Idle string / well restoration 6 slot recovery & infill sidetracks Improved operating efficiency No Further Action Natural decline Current production approx 1,000 bopd and ~20,000 boepd from ~7000 in Dec 2012 Achieved thru: Production optimisation Idle string / well restoration 6 slot recovery & infill sidetracks Improved operating efficiency Dec’12 Feb’13 Sep’13 Apr 14 “Quintupling” Technical Potential

Multi-phased approach to maximize production and manage mature assets Kinabalu Production Operations Early Rejuvenation Redevelopment Integrated Operations 1 2 3 4 Improve the HSE Performance Improve Field Reliability Platform Debottlenecking Project Well interventions Field Development Update Six infill wells New Platform New Facilities Additional Infill Drilling and Workover Campaign Secondary Oil Recovery Synergies with PETRONAS Carigali in Sabah The “Vision” included different Phases / Aspect for Rejuvenation of Kinabalu This presentation focuses on the Early Rejuv Well intervention & 6 infill wells At capital cost <15% less than budget Other key elements have been Prod Ops Improvement in overall OEE ~ 95% for 2014 Upgrades / major maintenance to key LP/HP/GTG machines Commenced installation of PWT with conversion of sep to 3phases / 60kbd capacity Redev MR4 in progress for next stage of redev 1st stage is WH platform with 9 wells, 2nd stage is WI Synergies with SBO (KNNAG/Samarang/Sumandak) on Ops/Dev/Subsurface LP Separator KN 114st

Flexible Approaches to Optimize and Accelerate Development & Rejuvenation Infill Schedule Innovative Approach to Modelling / Modelling Technology Subsurface Data Sharing Data Gathering Well Design Technology As part of rejuv adopted a number of different approachs To delivery the infill wells Address key issues re the future redevelopment

L2 Static Reservoir Model Rejuvenation Infill Wells Notable Milestone Achievements through innovative approach on modelling Innovative Modelling Use Pre-Existing approved models* 1st three infill well approved through TRC Additional 3 wells approved program 1st well completed Continuous drilling Jan 2013 Feb 2013 Oct 2013 Nov 2013 Dec 2012 Aug 2014 * Pre-existing approved models used to accelerate Rejuvenation MR#2/3/4 process, prior to completion of updated models L2 Static Reservoir Model First three infill wells approved through TRC within 3 months of PSC handover (Feb 2013), 3 further wells approved. 5th & 6th wells accelerated into current rig programme Very close cooperation with MPM / JV Very integrated SS / Drilling team Mixture of experience and new grad Supplement by short term consultancy Use of MPM Umbrella contract for additional consultancy support Pre-existing approved models used to accelerate MR2/3/4 process, prior to completion of updated models QC’ed existing models Identifies early wells with good potential – robust reserves / economics First well completed 25 Nov 2013, continuous drilling through to Sept 2014 Farmout to PCSB to meet joint requirements – offline abandonment Modified drill schedule to drill 6 back to back Early intervention / safety upgrades / offline abandonment

Kinabalu Development Studies Comprehensive re-evaluation of 30+ reservoirs Modelling Technology A comprehensive re-evaluation of 30+ reservoirs Infill well locations Pressure maintenance EOR evaluation Reservoir management plan Multiple Static Realizations Key approach was to construct Statis & Dynamic models for all Tier 1 & 2 > 10 MMbbl STOIIP – 10 10 main models with close to 30 reservoirs Iterative approach testing multiple static models Used to address Rejuv targets IOR/EOR Overall reservoir management New static models for each group of reservoirs > 10 MMbbl STOIIP – 10 models constructed

Rejuvenation – Infill Well Targets KN-114ST3 KN-106ST4 KN-110ST4 KN-116ST1 KN-109ST3 KN-117ST2 Well Type Single Selective Deviated Dual Horizontal Single Selective Objective Primary objective: L2/3/4 reservoirs K2 and J6/7/8 reservoirs Oil in X3_1 reservoir. Secondary objective Appraisal of U and W reservoirs L2 reservoirs and backup on the L3/4 reservoirs K2 reservoirs O5/6 reservoirs. Secondary objective: Tier 3 M6/7 virgin reservoirs TD 8,712 ft TVDss 11,000 ft MD 8,526 ft TVDss 11,788ft MD 10,330 ft TVDss 14,105 ft MD 8,850 ft TVDss 9,882 ft MD 7,967 ft TVDss 8,900 ft MD 10,360 ft TVDss 12,620ft MD Status Completed on L2, L3, L4 Completed on J6/7 and K2 Completed on X3 as horizontal Completed on L2 Completed on K2 Completed M6/7 and O5/6 The assessment resulted in 6 infill well targets – 6 donors Well differed in Type / completion (single dual selective / horizontal / Virgin / depleted / areal location Flexibility with DONORS owing to issues with abandonment Unitised well between Brunei / Malaysia

Field Cross-section - Rejuvenation Wells KN-117S2 KN-110S4 KN-114S3 KN-116S1 KN-106S4 KN-109S3 East Fault Block Main Fault Block Key targets Covered key main fault block in deep and shallow Development of virgin East X3 Provide value basis for input to redevelopment

Data sharing effort with PCSB’s adjacent fields improved reservoir potential assessment and infill targets Data Sharing X3 Reservoir, East Block Cross PSC data sharing for improved reservoir description Original available data Data sharing PCSM /KNNAG and ourselves share same real estate CA put in place to allow open sharing of data both raw and interpreted Close liaison owing to well trajectory X3 examples Limited by early appraisal data Access to PCSB wells provided completely different insight and potential for X Target horizontal well Prize was as well produced 2700 bopd Continue to work witth all parties for common beenfit Realization of potential of 2,700 bopd from X3 reservoir (KN-110ST3) Post data-sharing with KNNAG

Comprehensive Data Acquisition For Future Optimisation Data Gathering Comprehensive Data Acquisition For Future Optimisation Cored 90ft 100% recovery Cored 65ft KN-114ST3 KN-106ST4 KN-110ST4 KN-116ST1 KN-109ST3 KN-117ST2 Full LWD (GR / Res / Den / Neut)  Reservoir Pressures (D Reservoir Only) NMR (MRIL / CMR) (CMR Only) Sonic Scanner (Dipole) (Dipole Only) UBI Conventional Core Stages approach to data collection to target key data requirement 1st well 114 Sonic/UBI/inter sand MDT over all horizons both producing and non-producing 2nd well sand MDT Later wells targetting acquisition in unpenetrated zones Finally core in shallow as KN-2 J and deeper Improved reservoir description Extensive P measurement in 1st 2 wells Collect NOW for better optimisation TOMORROW

Sand Mitigation Solutions Well Design/Technology Comprehensive sand study Based on existing and newly acquired data from Kinabalu and KNNAG Orientated perforation to maximise allowable drawdown and minimise risk of sand production Perforated in vertical maximum stress orientation (10/350 degrees) SAND STUDY ORIENTATED PERFORATION Adopted a similar approach of managing sand at surface Comprehensive sand study completed based on existing and newly acquired data from Kinabalu and KNNAG Implementation of orientated perforation in later infill wells to maximise allowable drawdown and minimise risk of sand production. Perforated in vertical maximum stress orientation (10/350 degrees Continue to refine the models

Drivers to Success Extensive Early data Acquisition Multi-Azimuth 3D PSDM NMR/CMR Acquisition IOR/EOR Evaluation Integrated Assets Integrated Subsurface Drilling & Wells Static & Dynamic for 30+ Reservoirs Data Sharing across PSCs Core Acquisition Orientated Perforations CT Conveyed Saturation Tool Well Startup & Flow Control MPM/ JV / TLM Alignment Some of the many aspects that have allowed us achieve our TARGETS Facilities Operational Improvement Innovative Commercial Approach (PVB)

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