Donggi Senoro LNG Project

IndoPIPE 2014

5th International Indonesia Gas Infrastructure Conference & Exhibition

Royal Ambarrukmo Hotel, Yogyakarta - Indonesia

Patumpu Simamora, Commercial Director

18 June 2014

Table of Contents 1. Introduction of Donggi Senoro LNG Project

2. Donggi Senoro LNG Project Update

3. DSLNG’s effort for project integration

2 Strictly Confidential

Project Location Central Sulawesi

1. Introduction of Donggi Senoro LNG Project

Arun NGL Badak NGL

Tangguh LNG

4th LNG Project in Indonesia

DSLNG

1862 km from Jakarta to Luwuk

3 Strictly Confidential

Aerial Photo at LNG Plant Site As of 12 November 2013

Material Offloading Facility LNG Jetty Air Fin Coolers Firewater Tank Main Control Room

Gas Turbine Generators Main Substation MCHE

Flare LNG Tank Refrigerant Storage

4 Strictly Confidential

Business Structure Indonesia’s first down stream LNG Business model to produce LNG

MGDP/ Matindok

DES

Upstream

JOB PMTS/ Senoro

DSLNG LNG Buyers

FOB

KOGAS

Kyushu Electric

Chubu Electric

Gas Sales Agreement

LNG SPA

LNG SPA

LNG SPA

TCA

85 mmscfd

250 mmscfd

1 mtpa

0.3 mtpa

0.7 mtpa

2 mtpa

Gas Sales Agreement

1. Introduction of Donggi Senoro LNG Project

5 Strictly Confidential

1. A good example of “Development of Stranded Natural Resources”

• Best-mix development provides an opportunity for development of natural resources which left undeveloped for more than decades.

2. “Front Runner” project in Eastern Indonesia (Sulawesi EC)

• One of the biggest projects in Sulawesi Economic corridor of which development is one of the objectives under “ACCELERATION AND EXPANSION OF INDONESIAN ECONOMIC DEVELOPMENT 2011-2015 MASTERPLAN”.

3. First downstream LNG project in Indonesia

• “Downstream” business model reduces “cost-recovery (government’s expense)”.

4. Collaboration amongst Indonesia, Korea, Japan

• The first LNG project which stakeholders from upstream, midstream (LNG Plant Operator) up to LNG buyers are all Asian companies.

Highlights of Donggi Senoro LNG

1. Introduction of Donggi Senoro LNG Project

6 Strictly Confidential

Schedule Management and Cost Control Good management of schedule and cost by progress measurement agreed by DSLNG and EPC contractor

2. Donggi Senoro LNG Project Update

As of 25 May 2014

8 Strictly Confidential

Physical Construction Progress

(25 May 2014)

Cumulative %

Plan Act. Var.

E 100 100 0.00

P 100 100 0.00

C 96.28 97.03 0.75

OVERALL 98.37 98.69 0.32

Cumulative %

Plan Act. Var.

94.7 95.8 1.1

QHSE Performance

36.5 million hours worked

without DAFWC

LNG Jetty Area

Dehydration & Mercury Removal

HP/LP MR Compressor

QHSE Management

High quality of QHSE management following international standard “OSHA” and “ANSI”.

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2. Donggi Senoro LNG Project Update

Days Away From Work 0

Fatality 0

Restricted Work Days / Medical Treatment

35

FA, NM, Illness, Malaria, Property Damage, Traffic Accident, Fire, etc.

341

STARRT Conducted (hours of participants)

304,178

Leading Indicator Unit Project to

Date

Man Hours (all) hours 36,580,347

%, Training Hours % 0.62% STARRT (Safety Task Analysis Risk Reduction Talk)

hours 304,178 As of May 2014

No. Lagging Indicators Unit Up to

Dec 2013 2014 YTD

Project to Date

1 People

1.a First Aid Case Cases 69 3 72

1.b Medical Treatment Cases 21 1 22

1.c Restricted Work Day Case Cases 11 2 13

1.d DAFW Case Cases 0 0 0

1.e Fatality Cases 0 0 0

1.f RIF (Recordable Injury Frequency) Ratio 0.21 0.10 0.19

2 Environment

2.a Minor Spill (< 0.16m3) Cases 73 9 64 2.b Serious Spill (16m3 > _ > 0.16m3) Cases 0 0 0

2.c Major Spill (> 16m3) Cases 0 0 0

3 Others

3.a Near Miss Cases 68 14 82

3.b Property Damage Cases 54 6 60

3.c Trafic Incident Cases 9 0 9

3.d Fire Incident Cases 13 5 18

3.e Security Cases 0 0 0

3.f Illness (inc. Food Poisoning) Cases 5 5 0

3.g Malaria Cases 20 20 0

3.h Others (inc. Marine, Fighting etc) Cases 9 9 0

1000

1

10

100

Industrial Standard

Sulawesi LNG Development

59.9%

Pertamina Hulu Energi

29.0%

Medco LNG

11.1%

Donggi Senoro LNG

SENORO

MATINDOK

PHE Tomori

50%

Medco Tomori

30%i

Tomori EP UK

20%

Pertamina EP 100%

PERTAMINA MITSUBISHI MEDCO KOGAS

3. DSLNG’s effort for the project integration

Coordination between upstream parties and DSLNG Steering Committee is established amongst Ultimate Shareholders to monitor overall progress

Upstream Downstream Coordination Forum Coordination & Collaboration for interface matters by management level

Upstream Downstream Working Groups Technical Working Group/Commercial Working Group

CSR Working Group/QHSE Working Group

Tomori EP UK: MITSUBISHI 51%/ KOGAS 49%, Sulawesi LNG Development: MITSUBISHI 75%/KOGAS 25%

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Preparation for start-up and Operation Readiness

3. DSLNG’s effort for the project integration

Preparation for hand-over from EPC contractor and readiness for DSLNG’s independent operation

O&M Phase

First LNG Feed Gas

Operation Readiness

Mechanical completion

2011～2013 2014 2015

EPC Phase Start-Up

• Operation Organization • Process Safety Management • Production and Marine • Maintenance and Inspection • Technical Services • Operations Support • Gas & LNG Delivery Procedure • QHSE • ICT • Security • Assurance • Business Continuity

Commercial Operation Commissioning

11 Strictly Confidential

Thank you

Key Challenges of Donggi Senoro LNG

MISSION

DSLNG is a joint venture with cross-culture, various backgrounds

To be a safe and reliable provider of LNG

• Build and operate a reliable LNG project • Ensure all stakeholders benefit from the LNG value chain • Be a socially and environmentally responsible LNG company

VISION

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LNG Process Flow Diagram

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LNG Plant Specifications

• Feed Gas Supply 335 million standard cubic feet per day

• LNG Sales 2 million tonnes per year

• Process Technology APCI – propane pre-cooled mixed refrigerant

• LNG Tank Capacity 170,000 cubic meters x 1 tank

• Refrigeration Compressor Driver

Gas Turbine (Frame 5)

• Generating Capacity 3 x 22.6 Mega Watts

• Cooling Media Air

• Loading Arms 2 LNG Loading, 1 Vapor Return

• LNG Loading Pumps 2 x 2,000 cubic meters per hour

• Jetties LNG Loading (Max. 155,000 m3) and MOF

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LNG Specifications

• Gross Heating Value 1,060 – 1,170 BTUs /scf

• Methane 85 mol % minimum

• Butane 2 mol % maximum

• Pentane 0.1 mol % maximum

• Nitrogen 1 mol % maximum

• Hydrogen Sulphide 0.25 grain /100scf

• Total Sulphur 1.3 grain/100scf

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Additional Information

• Feed Gas

371,374 MMBTUD

335 MMSCFD

1,108.579 BTU/SCF

• LNG

319,634 MMBTUD

1,100.48 BTU/SCF

4,144 tons/day

• Condensate 2,313 bbl/day

• Own Utilities 40,850 MMTUD

41.9 MMSCFD

• Flare 176 MMBTUD

0.15 MMSCFD

• Plant Thermal Efficiency 88.95%

• Cargo Per Voyage

Hyundai Utopia

56,865 tons

126,086 m3

2,949,588 MMBTU

Northwest Swallow

56,660 tons

125,632 m3

2,938,954 MMBTU

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Upstream Wells

Strictly Confidential