11

O I L S E A R C H L I M I T E D

22

Investor Field Trip28 – 30 March 2011

OSH PARTICIPANTS

Peter Botten Managing DirectorGerea Aopi EGM, External & Govt Affairs &

SustainabilityPhil Bainbridge EGM, Gas GrowthPhil Caldwell EGM, PNG LNG ProjectRichard Robinson EGM, Operations Ann Diamant Investor Relations Manager

33

Field Trip Route

MORO

CPF

HIDES Ambua Lodge

PORTMORESBY

100km LNG Plant144°E

8°S

6°S

147°E

DAY 1DAY 2DAY 3

KOPI

MoranMananda 5

44

Key Oil and Gas Fields, PNG

Kumul Terminal

Port Moresby

7°S

Juha

Hides

Moran

Agogo

Gobe Main

HidesConditioning Plant

ProposedJuha Facility

CSG Exploration

LNGFacility

Kutubu

Moro Airport

Flinders

145°E 146°E144°E143°E

6°S

8°S

9°S

GorokaKundiawa

Mt. Hagan

Mendi

Kerema

Huria

Barikewa

Pandora

SE Mananda

Uramu

P’nyang

100km

LEGEND

Oil Field

Gas Field

Prospect

Oil Pipeline

Gas Pipeline

OSH Facility

LNG Facility

Major Road

Lead

147°E

Madang

Daru

Wabag

Angore

ExplorationGas Resources

PNG LNG ProjectGas Resources

Non PNG LNG Gas Resources

SE Gobe

Kimu

Juha North

Mananda 5

55

DAY 1 – Port Moresby

Visit POM Tech training facility Visit PNG Plant SiteMeet with PNG ministers and senior bureaucratsOvernight Airways Hotel

66

Port Moresby Technical College

Both Construction Training Facility, to train up to 1,000 worker pa, and Production Operations Training Centre, for ongoing plant and operations, are openJuni Training Centre opening in 2011

77

PNG LNG Plant Site - schematic

888

PNG LNG Plant Site - actual

99

PNG LNG Plant

LNG facility located on State Portion 152 near Port Moresby

2 x 3.3 MTPA LNG trains

LNG storage tanks at the facility

LNG loading jetty off the coast for tanker ships to berth and load

Supporting facilities and infrastructure:Large camp for construction (~7,500) and operations (~500) personnel

Upgrade of existing road between LNG facility and Port Moresby and rerouting of the road around the LNG facility to maintain traffic flow to the north (completed)

Temporary laydown areas during construction only

1010

Schematic of LNG facility site and loading terminal

LNG Facility Location

1111

DAY 2 – PNG Highlands

Visit Kopi – southern logistics baseVisit Central Processing Facility (CPF) at Kutubu

Associated Gas construction activities

Overfly MoranOvernight Ambua Lodge

121212

PNG LNG Project

131313

Kumul Terminal

Port Moresby

7°S

145°E

HidesWellsJuha

Facility

EPC3LNG Facility

Kutubu CPF

Moro Airport

145°E 146°E144°E143°E

6°S

8°S

9°S

GorokaKundiawa

Mt. Hagan

Mendi

Kerema

EPC5BKomo

Airfield

100km

147°E

Daru

Wabag

PNG LNG Project

LEGENDOil Field

Gas Field

Oil Pipeline

LNG Gas Pipeline

Oil Facility

LNG Facility

Major Road

EPC1Telecommunications

(not shown)

Lae

EPC2Offshore pipeline

EPC5AOnshore pipeline

and Infrastructure

Gobe PF

Kopi Wharf

C1Support

Infrastructure

C2Support

Infrastructure

C1

EPC4Hides Gas

Conditioning Plant

141414

PNG LNG Project Overview

6.6 MTPA, 2 train development, operated by ExxonMobilOver its 30-year life, PNG LNG expected to produce over 9 tcf of gas and 200+ million barrels of associated liquidsInitial Equities:

ExxonMobil - 33.2% Oil Search - 29.0%Kroton2 (PNG Government) -16.8% Santos - 13.5% Nippon Oil - 4.7% MRDC (PNG Landowners) - 2.8%

Fully contracted to Asian buyers, with continuing strong market interest

Sinopec (China) ~2.0 MTPATEPCO (Japan) ~ 1.8 MTPA Osaka Gas (Japan) ~1.5 MTPACPC (Taiwan) ~ 1.2 MTPA

151515

PNG LNG Project Overview

Main EPC contractors:LNG Plant: Chiyoda/JGCOffshore Pipeline SaipemHides Gas Plant CBI/Clough JVOnshore Pipeline SpiecapagInfrastructure McConnell Dowell/CCC JVEarly Works Clough/Curtain JVAssociated Gas (OSH only) Aker Solutions (Jacob)

Different labour environment to Australian LNG projectsFour-year construction period. First LNG sales date of 2014 and capital cost estimate of US$15 billion unchanged

1616161616

Milestones achieved in 2010

Mobilisation by major engineering, procurement and construction contractors and procurement of long lead equipment and materials Construction of training facilities in Port Moresby and HighlandsContinued early construction activities both in Highlands (incl. earthworks, resettlement, clearing, road and bridge upgrades) and at PNG plant site near Port Moresby (accommodation camp, road bypass)Completion of LNG Plant site camp, earthworks started at Hides plant site and Komo airfield and delivery of pipe to Kopi wharf commencedAssociated Gas (AG) construction in oil fieldsand PL 2 Life Extension underwayGenerally in line with Operator’s plan for schedule and cost

1717171717

Activities in 2011

LNG plant Procurement, earthworks, foundationsCommencement of structural steelwork, pipe racksJetty works, tank foundations

Offshore pipelineContinued procurement and mobilisation of pipePreparations for pipe lay

Onshore pipelineContinued procurement, coating and mobilisationRoute clearance and commencement of pipe lay

Associated Gas work at Kutubu and on the liquids export systemHGCP and Komo Airfield

Earthworks, foundations and start of constructionMobilisation of drill rigs

1818

Associated Gas & Related Projects (AGRP)

Oil Search, as Oilfield Operator, is responsible for development and operation of facilities required to deliver oilfield gas into PNG LNG Project and receive Project Condensate

Key objectives of AGRP are to deliver safely and within budget/schedule:

Commissioning gas to PNG LNG Project

Receipt, storage and export condensate from LNG Project HGCP with high reliability

Delivery of associated gas from oil production systems at CPF and GPF into LNG Project gas pipeline to LNG Plant

191919

CPF Scope Of Work

Associated Gas DeliveryEnhanced dehydration by replacing existing gas driers to improvegas quality and reduce emissionsEnhanced gas cooling for spec commissioning gas to LNG PlantAG Gas Management System by automating various wells for remote operation and upgrading plant inlet gas management systemNew and upgraded metering to manage gas reserves

Condensate StorageUpgrading of pipework to allow inline mixing, loss prevention (particularly fire management) and control systems

Commissioning GasInstallation of skids to deliver early commissioning gas to LNG Plant

UtilitiesImprovements to ESD system and new control roomTie ins for new equipment into existing and improved utilities

2020

20

Facilities Basis - CPF

2121

Construction Progress

New Ridge accommodation units – handed over and partially occupiedEPCM Contractor, Aker Solutions, on site and undertaking pre-mobilisation activitiesMajority of key Construction Management personnel in placeEarly works programme has commenced (Control Room civil works)

2222

PNG LNG Project Focus areas

Ramp up of logistics and resourcingOnshore pipeline installation – terrain, multiple work frontsContinued work with project area communitiesEfficient use of landowner companies to deliver maximum local content (over K1.5bn to date)Engagement with Government during National Election build up

23232323

Timetable

2010 2011 2012 2013 2014

FinancialClose

•Continued early works•Detailed design•Order long leads and place purchase orders

•Open supply routes•Contractor mobilisation•Commence AG construction

•Complete pipe lay•Ongoing drilling•Complete Hides plant•Commission LNG plant with Kutubu gas

•Ongoing procurement and mobilisation

•Airfield construction•Drilling mobilisation•Start offshore pipeline construction

•Onshore line clearing and laying

•Start LNG equipment installation

First Gas from Train 1,

then Train 2

•Complete AG •Continue onshore pipe lay

•Complete offshore pipe lay

•Start Hides plant installation

242424

PNG LNG Project – Highlands, Kopi

Aerial view of HGCP site Juni Training Camp construction

Pipeline stringing, onshore pipeline Kopi Shore Base

2525

GrowthOpportunities

2626

PNG Gas Growth

Key strategic priority for Oil Search is to grow gas business in PNG, with LNG the optimum commercialisation route PNG LNG will provide infrastructure, workforce capability and provide a competitive cost structure:Government is very supportive of, and expects, future gas growthOil Search is pursuing a two pronged strategy:

PNG LNG ExpansionGulf Area LNG

Competitive and positive position in the LNG marketFocus on broad reserves maturation programme

2727

Source:�FACTS GLOBAL ENERGY,�Feb�2009

Asian LNG Markets Outlook

Multiple potential suppliers of LNG post 2015 Economically robust brownfield expansions with quality operatorswill have advantage when seeking offtake agreementsLNG outlook very dynamic

Source: Wood Mackenzie and Deutsche Bank, February 2011

MMTPA

JapanJapan

South KoreaSouth KoreaTaiwanTaiwanIndiaIndia

ChinaChina

0

50

100

150

200

250

300

2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

OtherOtherMalaysiaMalaysia

SingaporeSingapore

ThailandThailand

ChileChileMexico WestMexico West

2828

PNG LNG Resource Maturation

PNG LNG dedicated fields:Associated Gas Fields:

Oil Search as Operator undertaking detailed evaluation on additional resource potentialSeeking PNG LNG Co-Venturers (CoV) alignment on additional resource

Hides GWC well:Targeting 4Q 2011.

Issue being considered is impact on Project logistics plan

Hides Northern Well:Timing still being discussed

2929

PNG LNG Resource Maturation

Existing discoveries outside PNG LNG dedicated fields with high equity alignment:

P'nyang: Seismic in 2011 scheduled to be completed in MayTargeting drilling of commitment well in 1Q 2012

Exploration licences with high equity alignment:Huria:

Seismic in 2010/11 complete and being evaluated Subject to final technical review, targeting drilling in 4Q 2011

Existing discoveries in “catchment area”Pandora (PRL 01):

Pandora JV progressing development studies and initial discussions with PNG LNG

Barikewa (PRL09):Oil Search have assumed Operatorship Commencing development studies and initial discussions with PNG LNG

Uramu (PRL10)Commencing development studies and initial discussions with PNG LNG

30

Huria Prospect

Located adjacent to Angore and Hides gas fields

Large, broad anticline

Multi tcf potential

Seismic completed and being interpretedTarget drilling 4Q11 subject to final decision.

PRL 11 WI %

Oil Search 52.50

Exxon 47.50

MSL

-1000

-2000

-3000

-4000

1000

-5000

SW

Ieru

Darai

ImburuToro

Strickland

Huria

NE

metres

PRL11

PDL7

PPL239

PDL1

PRL02

PPL260

PDL7

Huria Prospect

PPL219 PPL233

PDL6 PDL5

PDL9

PRL11

PDL8

PDL8

PRL02

PRL02

3131

Gulf Area LNG Strategy

Selected Gulf Area licences high graded:Proven hydrocarbon areaMultiple play typesRelatively untested

Strategy:Secure broad licence position De risk with seismic and then potentially:

Farmout to a credible LNG player with development aspirations aligned with OSH Targeting OSH equity of ~30-35%

Target multi well drilling programme in 2011/12

Steps completed so far:Increased equity in Pandora (PRL 01) to 24%Increased equity in PPL 244 as a result of the swap with Talisman for PPL239Completed farmins to four additional licences in Gulf AreaCompleted initial phase of large 3D seismic surveyRemaining seismic underway

3232

Gulf Area Licences

PRL03

PRL11

PRL12PPL239

PDL1

233

PRL02

PDL5PDL6

PPL260

PNG LNG ProjectGas Resources

Non PNG LNG Gas Resources

ExplorationGas Resources

OSH Operated LicenceOSH Interest LicencePetroleum Development LicencePetroleum Retention LicenceLicence Application“Farm in” LicenceOil FieldGas FieldOil & Gas FieldOil PipelineProposed Gas Pipeline

KumulTerminal

PRL01

PPL234

PRL10

9°S

145°E 146°E 147°E144°E143°E142°E

Pandora

PRL08

PPL240

PPL233

PPL190

PPL219PDL2

PDL4

PDL3

APDL14

AngoreJuha

Hides

Agogo

Kutubu

Gobe Main

Uramu

Moran

PPL276

PPL312

PPL338

PPL339

PPL339

339

339

338

338

338339

339

339

339

9°S

8°S

7°S

6°S

339

PPL244

PPL 276

PPL 339

PPL 312

PPL 338

50km

Flinders

PPL 339

PPL 244

PPL 234

PRL 1

3333

PPL 234 & PPL 24480% equityArea of 3D seismic ~4700km2

144°E

9°S

8°S

50km

8°S

7°S

145°E

PANDORA

PASCA

URAMU

GOBE

ELK

PNG LNG Pipeline

146°E

PPL 312Partner: Hillsborough Energy Ltd.30% equity for carry on 3D seismic45% equity for carry on well

PPL 276Partner: Rockwell Energy Ltd.30% equity for carry on 3D seismic50% equity for carry on well

Gulf Area LNG Licences

Port Moresby

PPL 338Partner: Dabajodi Int. Energy Ltd.30% equity for carry on 2D seismic40% equity for partial carry on well

PPL339Partner: Dabajodi Int. Energy Ltd.30% equity for carry on 2D seismic40% equity for partial carry on well

PPL 339Partner: Dabajodi Int. Energy Ltd.30% equity for carry on 2D seismic40% equity for partial carry on well

3434

Gulf Area Seismic Surveys

Seismic surveys:PPL 234 and PPL 244 3D complete

PPL 276 and PPL 312 3D commenced

PPL 338/339 contracts awarded and being mobilised

All acquisition and processing complete by July ‘11

Interpretation and evaluation complete at end 3Q11

35

PNG Oil Exploration

PPL 219 WI %

Oil Search 71.25

JX Nippon Oil & Gas 28.75

APF

SE ManandaMoran

Agogo

MANANDA 5

PDL6

PPL219

PPL233

PDL5

PDL210km

PPL233

PPL219

219

APPL349

APPL350

KutubuCPFRidge Camp

Moro 2C resource of 25 mmbboe booked

Currently completing extensive testing programme

Results have been encouraging

Considering options for appraisal/development

36

Mananda-5: Toro C Flare

36

3737

Toro A:

Main Flow: 800 – 1100 bopd, GOR 650 scf/bbl, maximum of 20/64” choke

Extended Flow: 1000 – 1200 bopd, GOR 900-1000 scf/bbl, choke 20-24/64”. Maximum flow 1900 bopd, GOR 900 scf/stb, choke size of 32/64”

Toro BL:

Main flow: 1150 bopd, GOR 600 scf/bbl, 20/64”choke

Maximum flow of 2085 bopd during multi rate testing

Toro C:

Main flow: 800-1200 bopd, GOR 1200 scf/bbl, 28/64” choke.

Maximum rate of 1885 bopd on 32/64” choke.

Imburu A:

Initial Flow: 500-700 bopd, GOR 1350 scf/bbl, 30% BS&W. Testing curtailed due behind pipe influx of water from Digimu.

Digimu:

Initial Flow: 500-1400 bwpd, 0.2 MMscfg/d.

Mananda 5 Production Testing Update

3838

CSG Exploration

OSH holds seven MELs, each approximately2,400 to 2,550 sq km. Total area 17,500 sq kmLow cost wells, high risk, potentially large prize Drimgas intersected coals and cores being testedSmipen 3 currently drilling

6°S

142°E20km

141°E

EL 1725

EL 1726EL 1720

EL 1721

EL 1722

EL 1723

EL 1724

Ningerum 1

Drimgas 2

Smipen 3

3939

MENA Exploration

Dubai Office

Tunis OfficeTajerouine + Le Kef- Recently completed 600km 2D- 2 commitment wells by 2Q 2012

K42 & Shakal- Recently completed 200km of

2D in K42 and 50km of 2D in Shakal

- Interpretation underway

Block 3 & 7- Tubb’a gas condensate discovery in

Block 3- Al Meashar 2 completed- Exploration/production options will be

reviewed post Al Meashar 2

4040

DAY 3 – PNG Highlands

Overfly HGCP, Komo AirfieldVisit Hides camp at NogoliOverfly Mananda 5, SE ManandaTo Port Moresby

4141

ProductionSummary

4242

World Class Safety Performance

Total Recordable Injury Frequency Rate Data(per Million Hours Worked (All Reported Data))

Fletcher Building

BramblesFoster’s

Macarthur CoalOZ MineralsDowner EDI

United GroupOrigin

Incitec PivotBoart LongyearContact Energy

James HardieHastie Group

CSR

StocklandTransfieldNewcrest

AWEBHP Billiton

Lahir GoldAmcorSantos

OricaWoodside

Oil Search

Fletcher Building

Brambles

Foster’s

Macarthur CoalOZ Minerals

Downer EDI

United Group

Origin

Incitec Pivot

Boart Longyear

Contact Energy

James Hardie

Hastie Group

CSR

Stockland

Transfield

Newcrest

AWE

BHP Billiton

Amcor

SantosOrica

Woodside

Oil Search

0 5 10 15 20 25 300 5 10 15 20 25 30

2009 2010

Source: Company data, Citi Investment Research and Analysis. Note: TRIFR – Total Recordable Injury Frequency Rate per 1 million hoursworked; * Lihir Gold taken over by Newcrest. (September 2010); ** Citi estimate for Macarthur Coal’s Group TRIFR based on operations’weighted average coal production.

FY10YTD data

434343

Oil Search Production

10 Net Production (mmboe)

0

2

4

6

8

2008 2009

8.60

7.66

2010

8.12

2011(Forecast)

6.2-6.7

2012 2013

MENAHides GTESE ManandaSE GobeGobe MainMoranKutubu

444444

FY10 Performance

World class safety performanceProduction

Strong production performance of 7.66 mmboe, above guidanceGas conservation exceeded targets with lower than expected impact on oil production

~20 bcf conserved in 2010

Kutubu and AgogoADT 2 ST3 well continued to contribute strongly ~1,500 bopd

Moran 15 ST1 proved field extension to the south eastMoran and Gobe Main – base production exceeded forecastsSE Gobe underperformed in 1H10 but improvement in 2H10

45454545

Reserves at 31 December 2010

No external reserves audit was completed this year:Field production performance consistent with predictions through 2010Following sanction of PNG LNG Project, 301 mmboe (1P) and 505 (2P) mmboe were booked in 2009, no significant changes since

2010 production of 7.7 mmboe led to:Proven (1P) net remaining oil and gas reserves decrease from 344.5 mmboe to 336.8 mmboeProven and Probable (2P) net remaining oil and gas reserves decrease from 566.9 mmboe to 559.3 mmboe

Oil reserves cover of 7 years, based on 2010 production, gas reserves cover of more than 25 years

46464646

Resources at 31 December 2010

2C contingent resources increased to 318 mmboe at end 2010, from 281 mmboe at end 2009, reflecting:

PPL 219 Mananda 5 and Yemen Block 7 Al Meashar-1 discoveries6.4% increase in PRL 1 (Pandora) following purchase of Twinza’s equity2.5% increase in PRL 9 (Barikewa) as result of farm-in with Santos

Total 2P and 2C reserves and resources of 877 mmboe, up from 848 mmboe in 2009

474747

2011/12 Development & Near-Field Appraisal Drilling Activity

PRL08

PPL240

PRL11

PRL12

PPL239 PDL1

PPL233

PPL190

PPL219

PRL02

PDL2

PDL5PDL6

PRL09

APRL14

PPL260

PPL219

PDL4

PPL219

PDL3

PDL4

PRL12

50km

AngoreJuha

Hides

SE Mananda

Barikewa

Kimu

Cobra

Iehi

PPL240

PPL233

APPL350

142°E

6°S

143°E 144°E

7°S

Usano:2011 : 1 well, 1 workover2012 : 1 well

Kutubu:2011 : 1 well, 1 workover

Agogo:2011 : 1 well2012 : ±1 well

Moran:2011 : 1 well2012 : 1-2 wells

SE Gobe:2011 : 4-5 workovers

Gobe Main:2011 : 1 workover

484848

2011 Production Outlook

Underlying production from oil fields expected to remain strong,with 2011 production impacted by:

Production from Moran 15 for full yearNatural decline Two week shutdown for tie-in of Associated Gas facilities

Production guidance for 2011 of 6.2 – 6.7 mmboe, with production out to first LNG broadly flat, subject to success of work programmes

Robust workover and development drilling programme in 2011Reservoir models for major PNG oilfields being comprehensively updated to ensure gas blowdown maximises value

Rig strategy:One rig focused primarily on development and near-field appraisal through 2011Second rig currently being utilised on third party opportunities

49494949

Key 2011 Focus Areas

Maintain OSH’s industry-leading safety performance in a high activity environment

Continue to build sustainable combined oil and gas business

Strong commitment to cost effectiveness

PNG LNG Project commitments driving operational developments:Improved reliability and long term integrityLife extension programmes for facilitiesUpgrade of key systems and processesEnhanced development of personnel

Continued focus on capturing additional in-field and near field reserve opportunities, particularly forelimb opportunity opened up by ADT 2 ST3Support ongoing LNG Project development with access to infrastructure and in-country expertise

505050

Strategic Review

Substantial broad based Strategic Review was completed in 4Q10

Review of all major assets and options to continue to deliver top quartile shareholder returns for the next 5+ yearsProvided key work programmes and required resourcing to achieve this goalPerformance management programme to drive delivery

Review provides the template for material continued value growth

515151

Strategic Review

Key Conclusions of Review:Past reinvestment in PNG has created significant value (more than 30 fold increase in market cap since 1992, 4 fold increase since 2005)OSH has asset base and primary skills to deliver top quartile returns for 5+ yearsKey value drivers will be major project delivery, continued resource build and enhancing oil and gas operating synergiesMaximum value is achieved by remaining a focussed oil and gas growth company, driven primarily from PNGOil business will continue to provide excellent platform supporting LNG delivery and growthLNG expansion, Trains 3 & 4 are catalysts for material growth

525252

Strategic Review

Major Strategies have been defined to deliver growth:1. Oil and Gas Production Optimisation

Near field production opportunitiesRigorous cost controlNew developmentsBuilding long term operating capacity

2. Maximising value from PNG LNG Project (T1 and T2)Project delivery on time, on budgetEnhance reserve portfolioActively manage in country issues, including benefits distribution

3. Development of Gas Expansion LNG OpportunitiesResource build for T3 underwritingOptimisation of cost structure

535353

Strategic Review

4. Gas Resource Accumulation for LNG OpportunitiesDevelop third party gas strategyResource build for T4 underwritingIncludes Offshore Gulf exploration and appraisalMeasured acquisitions and aggregations

5. Ensure Oil Search’s SustainabilityMajor enhanced focus on managing operating risks, as large projects are deliveredPromoting transparency in benefits distribution and sustainability“Social Licence to Operate” – new community initiativesImproved reporting

545454

Strategic Review

6. Evaluate New Growth OpportunitiesMeasured programme to identify future growth options within and outside core areasOptimisation of value of MENA asset values

7. Optimising Financial and Capital StructureThrough to and beyond first LNG production

8. Align Organisation to Deliver StrategySkills development, succession planning

55

Sustainability Group

In light of increasing value of PNG assets going forward, OSH seeking to further enhance its focus on managing PNG sustainability issues (traditionally an area of strength)New Sustainability Group has been formed:

Focus on communities, government/regulatory and in-country business relationships

Group will be multi-facetedSpecific initiatives involve:

Relationship building, Government, Landowners etc Facilitating transparency and equity in benefits distributionEnhancing capacity to capture growth opportunities

New Health Foundation also being establishedExpansion of existing health programmes

56

Comprehensive Approach to Sustainability

Project Benefits to Government and Landowners include:

Tax Payments to GovernmentDirect Project Royalties – an essential componentRoyalties and development leviesLandowner company development and contract ownershipEmployment, training and educationCommunity Area ProjectsTax Credit InfrastructureCommunity Programmes (MDG’s)Sustainable Community Development InitiativesEnvironmental Sustainability

57

Comprehensive Approach to Sustainability

Oil Search Enhanced FocusPNG Stakeholder Engagement

GovernmentLandowner Leaders and Community EngagementBureaucracy capability enhancementFrom village to Port Moresby – outside the fence and dealing in the village

Transparency in Benefits Distribution Public payment, contract awardsPromote governance

Independent Sovereign Wealth and Funds

58

Comprehensive Approach to Sustainability

Transparency in ManagementSustainability ReportStakeholder Engagement

OSH Commitment to PNGOil Search Health FoundationExpand world class HIV/Aids and malaria management programmesExpand Health of the Nation Programme

Child and Women's healthSupported by Global Fund (Primary Recipient) AusAid and ADB

Environmental SustainabilityISO 14001 accreditationPartnership with WWFEnvironmental EducationWild Life Management Areas

A Major Corporate Focus to Deliver Value

595959

2011 Outlook

PNG LNG Project delivery underway:Project ramp up continues at accelerating pace:

Commencing construction at PNG LNG plant site, HGCP and KomoAssociated gas and life extension projects Focus on management of in country issues

Further pursuit of gas expansion and resource underwriting

Hides evaluationHuria and P’nyang exploration and appraisalGulf area seismic and prospect maturation

Continued strong oil field production performanceTesting and evaluation of Mananda 5 discoveryComprehensive development and workover programme

Optimise value of MENA Assets

606060

2011 Guidance Summary

Continued good field performance Oil and gas production: 6.2 – 6.7 mmboeSimilar performance in 2012 and 2013

Operating costs ex corporate costs: US$16-18/boe Impacted by:

Lower production volumesMajor workover programme to maximise oil recoveries before gas productionExpected PNG inflation, including currency impactsAssociated Gas activitiesCost sharing opportunities

Corporate Costs~ US$3/boe from ~US$2.16/boe

Stronger A$ exchange ratesFocus on sustainability initiatives

D,D & A: US$7-9/boe

616161

2011 Investment Outlook

US$’m

Investing :Exploration inc gas growthPNG LNGProductionCorporate (inc rigs)

Financing :Dividends

2010 (A)

1761139

427

0*

* Dividend fully underwritten

# 35-40% of spend in MENA

2011 (F)

180 – 200# 1,150 – 1,400

110 – 13010

0*

626262

Liquidity Outlook

Funding in place to meet existing commitments and base business plan:US$1.26 billion in cash at end December, US$304.5 million available from term revolving facility, nil drawn down = Group liquidity ~US$1.56 billion

Discretion over timing of non commitment activitiesSufficient liquidity to deliver on strategic plan initiatives

Key Assumptions:1. Brent Forward curve pricing as at 3 February 20112. PNG LNG Project on schedule and budget3. Train 3 FEED costs included, Train 3 construction costs excluded4. Production profiles, other Capex / Exploration based on strategic review business plan5. Existing oil facility refinanced

Time

US

$m

Liquidity (cash plus undrawn bank debt)

31 Dec 2010

636363

Summary

Company fully focused on delivery of Major Strategic Initiatives

Oil field performance remains strong, costs are tightly controlled. Impacted by associated gas constructionPNG LNG T1/2 construction underway

Timing and budget unchanged

LNG expansion and gas resource accumulation programmes matured. Seismic underway and drilling planned for 2H11Testing and appraisal activities planned for Mananda 5Activities underwritten by strong balance sheet and ample liquidity to meet LNG obligations and expansion focussed activities

646464

Long Term Production Outlook

PNG LNG transforms production profile, adding ~18 mmboe pa to OSH at plateau in 2015 onwards. 30 year Project life

T3 could add an additional ~9 mmboe pa, with T4 of similar magnitude

Net

Pro

du

ctio

n (

bo

ep

d)

0

10,000

20,000

30,000

40,000

50,000

60,000

LNG GasLNG Gas

PNG DevelopmentPNG Development

70,000

80,000

Potential T3 LNG GasPotential T3 LNG Gas

LNG CondensateLNG Condensate

90,000

Potential T3 LNG CondensatePotential T3 LNG Condensate

2012 2014 2016 2018 2020 20262022 20282024 2030

656565

O I L S E A R C H L I M I T E D

666666

Appendix

Oil Search began selling production off a Dated Brent marker in July 2010Positive impact on revenue since this dateChange driven by liquidity in the Brent market compared to Tapis

Brent Premium over Tapis - July to December 2010

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Jul Aug Sep Oct Nov Dec

US

$b

oe

Lifting dates

676767

Port Moresby

8°S

6°S

146°E142°E

Juha

100km

Hides & Angore

Gobe

Kutubu & Agogo

PNG Attracting Growing Interest

Petroleum Licences

CSG Licences

Oil Search Equity ParticipationTalisman and Sasol have acquired significant acreage in Western Forelands. Interoil has strong position in Eastern ForelandsOSH strategy focused on enhancing position in core PNG LNG Foldbelt acreage and Gulf - viewed as offering greatest potential for large gas discoveries

Port Moresby100km

Juha

Gobe

Kutubu & Agogo

Hides & Angore

8°S

6°S

146°E142°E

Talisman Equity Participation

Port Moresby

Juha

Gobe

Kutubu & Agogo

Hides & Angore

8°S

6°S

146°E142°E

NGE & Interoil Equity Participation

NGE

Interoil

100km

686868

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