1. UNFC–2009 – Purpose of Resource Classification David MacDonald Houston 21 November 2013

2. A Couple of Anecdotes A famous company misrepresents its reserves with collusion of the board of directors Application of revised rules significantly alters management’s previous estimate Risk mitigation not in-place results in revision of field reserves Management found to be trading shares prior to release of revised reserves estimates Institute of Mining and Metallurgy London, 1911

3. Stakeholders of our Resources 3 External user External Influencers Internal users Governance and Assurance Internal Stakeholders Internal preparers

4. Principles for Resource Classification Project based – Project management Classification of total volume Clear boundaries between categories – Discovered – Commercial (economic and social license) 4

5. Resources are measured against … Economic to extract (commercially feasible) Technically feasible to extract Uncertainty well defined (with high confidence) Sustainable Mining and the UNFC, India, 29-30 October 2013 5

6. Typical Deepwater Facility Design 6 Floating Facility Export Facility Well count and management Riser towers Gas injection Water injection Maximum Rate Design Subsurface –Static –Dynamic Gathering Processing Transport Commercial Sources of Uncertainty Successful development plans include contingencies and mitigations for possible outcomes.

7. Reservoir Technical Limits 7 Options –Doable now (or almost) Possibilities –Potentially economic –May require incremental technology development – 5 yr timescales Barrier opportunities –Technical or commercial barrier –Not currently doable or uneconomic –Requires step change 0 BaseOptionsPossibilitiesBarrier Recovery Factor Reservoir Technical limit Barrier RF 1

8. Resource Progression 8 Exploration Prospect Access Appraise Select Define Execute Operate Approved for Development Production On Production Development Pending Justified for Development ExplorationCommercial Potentially Commercial Key Non-Commercial

9. Resource Progression 9 Exploration Prospect Access Appraise Select Define Execute Operate Approved for Development Production On Production Development Pending Justified for Development Remaining Prospectivity Development on Hold Development Unclarified ExplorationCommercial Potentially Commercial Key Non-Commercial

10. Role of Technology 10 coil tubing drilling unit sidetracks hydraulic fractures stimulations workovers non-rig workovers incremental production mbd The improvement of hydrocarbon recovery and investment efficiency is demonstrably linked with advances in technology. The right linkage between depletion and technology plans is vital to maximising value from our assets.

11. UNFC – 2D representation Extracted Sales Production Non-sales Production Class Categories EFG Future recovery by commercial development projects or mining operations Commercial Projects 111, 2, 3 Potential future recovery by contingent development projects or mining operations Potentially Commercial Projects 221, 2, 3 Non-Commercial Projects 321, 2, 3 Additional quantities in place associated with known deposits 341, 2, 3 Potential future recovery by successful exploration activities Exploration Projects 334 Additional quantities in place associated with potential deposits 344 Total commodity initially in place 11

12. Resource Identification Aids business planning Investment decisions for individuals and corporations Allows efficient resource utilisation Principally an aid to efficient development 12

13. Sales Production Non-sales Production Class Commercial Projects Potentially Commercial Projects Non-Commercial Projects Additional quantities in place Exploration Projects Additional quantities in place Total commodity initially in place Production Class Reserves Contingent Resources Unrecoverable Prospective Resources Unrecoverable UNFC-2009PRMSCRIRSCO Extracted Class Mineral Reserves Mineral Resources Not reported Exploration Results Not reported Alignment of systems (schematic) Sustainable Mining and the UNFC, India, 29-30 October 2013 13

14. Sustainable Development for All Definition must include entire resource base – Maintain competitive advantage – Recognise the total potential Over-conservatism may lead to lost opportunity Uncertainty analysis must identify the components – Technical – Project – Commerciality and Social License UNFC-2009 with its focus on economic viability, technical feasibility and uncertainty is well placed to meet all of these needs. 14

15. Resource Classification is not finished! 15