Kuwait Foreign Petroleum Exploration Company K S C

Kuwait Foreign Petroleum Exploration Company K. S. C ﻙ. ﻡ. ﺍﻟﺸﺮﻛﺔ ﺍﻟﻜﻮﻳﺘﻴﺔ ﻟﻼﺳﺘﻜﺸﺎﻓﺎﺕ ﺍﻟﺒﺘﺮﻭﻟﻴﺔ ﺍﻟﺨﺎﺭﺟﻴﺔ ﺵ A Subsidiary of Kuwait Petroleum Corporation ﺇﺣﺪﻯ ﺷﺮﻛﺎﺕ ﻣﺆﺴﺴﺔ ﺍﻟﺒﺘﺮﻭﻝ ﺍﻟﻜﻮﻳﺘﻴﺔ 20 th World Petroleum Congress Kuwait Ministerial Sessions KUFPEC Long-Term Strategy and Projects 6 th December 2011 KUFPEC Deputy Chairman and Deputy Managing Director (Operations East) Mr. Ali D. Al-Shammari December 2011

Kuwait Petroleum Corporation – KPC A fully integrated operation from well-head to petrol pump KPC’s activities are carried out by 10 subsidiaries with distinct mandates. KUFPEC is the International Upstream subsidiary of KPC Domestic International • Kuwait Oil Company – Domestic upstream • Kuwait Gulf Oil Company Upstream – Focus on the Divided zone, offshore area between Kuwait and Saudi Arabia • Oil Development Company • Kuwait Foreign Petroleum Exploration Co. (KUFPEC) – International upstream – Award and manage the OSC (Operational Service Contracts) with the IOCs, specifically for the Northern Kuwait fields Midstream/ services • Oil Sector Services Company – Construction and security services for KPC and its subsidiaries • Kuwait National Petroleum Company – Domestic downstream • Kuwait Aviation Fuelling Company Downstream – Aviation fuel facilities servicing over 1, 500 aircraft per month with a 30 million litre storage capacity • Petrochemical Industries Company – Fertilizers and petrochemicals • Kuwait Oil Tanker Company – One of the largest fleets for marine transportation fuel in the Arab world • Kuwait Petroleum International Ltd – International downstream – Refining and marketing in 7 European countries – Aviation fuel sales network in Asia – In Sweden it is the largest petrol station operator (28% market share)

KUFPEC Overview • KUFPEC: Kuwait Foreign Petroleum Exploration Company, a wholly owned subsidiary of KPC • 30 Years of expertise in E&P activities (Established in 1981) • An international company engaged in exploration, development & production of crude oil and natural gas out side Kuwait • Participates in joint ventures with similar companies in E&P of Oil and Gas both as an operator and partner • 2010 Net profit : 143 MMUS$ • 2010 revenue exceeded 1000 MMUS$ KUFPEC

KUFPEC Assets Portfolio China UK – North Sea Philippines Tunisia Malaysia Egypt Indonesia Mauritania Australia Congo Sudan Yemen Pakistan Vietnam Total Projects: 50 Projects in 14 Countries Project Type: 22 Production 5 Development 23 Exploration

KUFPEC Area Offices Five Regional Offices Egypt: Cairo Tunisia: Tunis Pakistan: Islamabad Indonesia: Jakarta Australia: Perth

2030 KUFPEC’s Strategy Direction • Preference for investments which facilitate technology and capability transfer between domestic and international upstream businesses • Achieve and maintain optimal ratio of oil & gas in international upstream portfolio • Become operator of international upstream assets

KUFPEC Production (kboe/d)

Strategic Opportunity Choices Exploration Ground-floor with partner, preferably not Deep Water Asset acquisitions Main focus Corporate Acquisitions Looking into Corporate deals since market getting better. (seller/buyer expectation gap narrowed) Oil vs. Gas No preference. Portfolio ~ 80% gas Geographic Location Preferably around KUFPEC producing assets, but open to new country entries (Ex: Vietnam 2009) Pro / re-active Strong preference for pro-active opportunities Operatorship 5% of production by 2015 (6 kboe/d) Unconventional To be reviewed. (Ex: Shale Gas) Partners Technically competent IOCs / NOCs Technology Transfer Heavy Oil, gas, HTHP

Opportunity workflow Model

Business Development Challenges External Strong Competition Especially from Asian NOCs. Public Bidding processes generally attract 4 -8 serious bidders. Oil Price Instability Leads to an “expectation gap” between sellers and buyers. Slows down M&A activity (2009). Opportunity availability KUFPEC to use the K-strengths and relationships to generate pro-active opportunities. Limited Exploration opportunities Either small or expensive (Deep Water). Internal Manpower More high quality technical staff required

Current & Potential BD “K” Corporation Think K – Grow K Oil Ministry help in relationships with other NOCs & Ministries (Exs: Pertamina, Petronas, ONGC, EGPC) KPC Excellent help through Shell ETSA relationship. Potential to “use” Marketing relationships KPI Excellent ongoing co-operation on Vietnam, Indonesia, China and Egypt (ongoing) KOC Excellent ongoing cooperation. Used Shell ETSA relationship to get access to an Asset Acquisition in Pakistan. Scope for more with other IOCs KGOC Potential to build on Chevron relationship (ongoing) PIC Potential for co-operation KIA Potential for co-operation