GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM Petroleum Unit

GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM Petroleum Unit Global LNG Summit 17 – 18 December 2003 km BRUNEI DARUSSALAM Washington D. C Slide 1

PRESENTATION OUTLINE GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM – ABODE OF PEACE OIL & GAS INDUSTRY CONTRIBUTIONS KEY PLAYERS IN GAS INDUSTRY KEY MILESTONES OF GAS INDUSTRY NATURAL GAS PRODUCTION NATURAL GAS DEMAND BRUNEI LNG GAS INDUSTRY ASPIRATION OFFERED ACRAEGE Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 2

BRUNEI DARUSSALAM – ABODE OF PEACE • Politically & Economically Stable. • Well-positioned and has proximity to existing & potential Asia-Pacific markets. • More than 70 years experience in upstream E&P activities. BRUNEI DARUSSALAM • More than 30 years in LNG Business. Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 3

OIL & GAS INDUSTRY CONTRIBUTIONS • Country revenue • Direct employment of 3, 500 staffs. • Indirect employment of large part of workforce. • Local business development. • Technology development. • Promotion of technical and HSEQ Standards. • Promotion of Bruneian interest. Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 4

KEY PLAYERS IN BRUNEI GAS INDUSTRY § Brunei Shell Petroleum (BSP) § Block B Joint Venture (BBJV) § Brunei LNG (BLNG) § Brunei Shell Tankers (BST) § Brunei Gas Carrier (BGC) Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 5

PRESENT DAY BRUNEI HC INFRASTRUCTURE Maharaja Lela Gannet Fairley Ampa Fairley Rationalization Project Magpie Champion Iron Duke Amp Tali OPP Gadong Berakas Jerudong BLNG Lumut Terminal Seria ( SCOT ) Rasau Muara Port Refinery 10, 000 bpd CPP Lumut BANDAR SERI BEGAWAN Crude Oil or Condensate pipeline Natural Gas pipeline Offshore facilities Onshore facilities Power facilities Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 6

EXISTING CONCESSIONS • Offshore Concessions 8, 618 sq km - Block A & CD (Shell Deepwater Borneo Ltd. , New. Co) - Block B (Total. Fina. Elf, Shell Deepwater Borneo ltd. , New. Co) - Others (BSP) • Land concession 2, 624 sq km - BSP Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 1

NATURAL GAS PRODUCTION 2002 - Highest in recorded production history 1999 – Block B Joint Venture start producing & become 2 nd gas producer Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 8

KEY MILESTONES OF GAS INDUSTRY IN BRUNEI 1929 Seria Field 1969 1972 – 1 st LNG cargo 1980 – 1000 th LNG cargo 1987 – 2000 th LNG cargo 1993 – 3000 th LNG cargo 1999 – 4000 th LNG cargo Brunei LNG Ltd/Cold Gas Trading 1 st LNG cargo e 1972 Brunei Shell Tankers 1986 Japan 1 st Contract Extension 1993 Long-term contract with KOGAS r 1997 Brunei Gas Carrier 1998 BBJV 1999 ABADI - 8 th LNG Tanker Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 2002 17 – 18 December 2003 Slide 9

GAS DEMAND - 2002 Total Gas Demand = 0. 4173 TCF § LNG – 0. 3533 TCF, 85% § Power generation – 0. 0396 TCF, 9% § Petroleum operator own use – 0. 0244 TCF, 6% Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 10

FUTURE GAS DEMAND • LNG. • Power generation. • Petroleum operator own use. • Downstream industry. • LNG plant extension opportunity. • LNG plant (6 th train) expansion opportunity. Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 11

INLAND GAS DEMAND Inland Demand 2006 – Downstream projects start Power Generation Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 12

EXISTING LNG PLANT – BRUNEI LNG • First production in 1972. • Delivered more than 4, 000 B Class Cargoes. • Production capacity 7. 2 MTPA • Five trains with each capacity of processing 5. 3 million m 3/day of gas. • Three storage tanks with total capacity of 176, 000 m 3. • Long term contract with Japan (6. 01 MTPA) and Korea (0. 7 MTPA). • Spot sales to Europe and United States. Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 13

BRUNEI LNG EXPORT 2002 - Highest in recorded export history 1997 - KOGAS 1993 – 1 st contract extension Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 14

BRUNEI LNG - 2002 2001 – Record: first time 200. 3 cargoes delivered 2002 – New Record: 203. 5 cargoes delivered Year 2002 Achievement Deliverable Through: � More reliable gas supply from gas producers � Continuous growth of LNG deliveries over the last 4 years � New outlets: 2 spot cargoes to Spain; 1 spot cargo to U. S. � No shipping disruptions Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 15

BRUNEI LNG – 2003 OUTLOOK � Absolute top production compares with previous years. � Stretching gas suppliers; maximum delivery. � Firm plans for 207+ B Class Cargoes. Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 16

BRUNEI GAS INDUSTRY GROWTH ASPIRATION BLNG PLANT EXTENSION = Assets Rejuvenation Plan (ARP) � Maintain current 7. 2 million ton / annum capacity � Gas require: ~ 7. 5 TCF BLNG PLANT EXPANSION – 6 th Train � 6 th Train: world scale capacity: 4 million ton per annum � First cargo delivery: after 2010 � Gas require: ~ 4. 2 TCF Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 17

BLNG PLANT EXTENSION & EXPANSION 330 300 EXPANSION 4. 2 TCF 210~215 LNG B- Cargo/a 200 Existing Contracts 0 Petroleum Unit BRUNEI DARUSSALAM 2006 EXTENSION 7. 5 TCF 2013 2020 Global LNG Summit Washington D. C 2026 2033 17 – 18 December 2003 Slide 18

RECENT DEEPWATER ACREAGE …the next deepwater activity and opportunities in Brunei Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 19

OUTCOME OF BIDDING ROUND BLOCK J Total. Fina. Elf (60%) BHP Billiton (25%) Amerada Hess (15%) BLOCK K Shell (50%) Conoco(25%) Mitsubishi Corp. (25%) Petroleum Unit BRUNEI DARUSSALAM Global LNG Summit Washington D. C 17 – 18 December 2003 Slide 20

GAS INDUSTRY DEVELOPMENT IN BRUNEI DARUSSALAM THANK YOU FOR YOUR ATTENTION Petroleum Unit Global LNG Summit 17 – 18 – 13 December 2003 km BRUNEI DARUSSALAM Washington D. C Slide 21 1