CC Energy Development Blocks 3 & 4 Development

CC ENERGY DEVELOPMENTBLOCKS 3 & 4 DEVELOPMENT

OMAN ECONOMIC FORUMAPRIL 23RD 2012

FARHA SOUTH FIELD

SAIWAN EAST FIELD

2

Block 3

Block 4

BLOCKS 3 & 4 HISTORY• EPSA FOR BLOCKS 3 & 4 SIGNED ON

FEBRUARY 9, 2003 BY ENCANA.

• CCED TOOK OVER 50% OF THE ASSET FROM ENCANA IN NOVEMBER 2007.

• EXPLORATION COMMENCED IN 2009.

3

BLOCK 3

BLOCK 4

0 50 Km

BLOCK 51

BLOCK 42

BLOCK 6

BLOCK 64

1972-1984

1983-1986

1985-1990

1991

1992-1994

1999

2001

2005-2007

2009-2012

CCED ACHIEVEMENTS1. BUILT EARLY PRODUCTION FACILITIES TO

PRODUCE OIL WITHIN 5 MONTHS AFTER THE GREEN LIGHT FROM MOG.

2. PREPARED AND SUBMITTED THE FIELD DEVELOPMENT PLAN TO MOG.

3. IDENTIFIED FURTHER EXPLORATION OPPORTUNITIES AND INITIATED A PLAN TO EXPLORE

5

EARLY/ PERMANENT

PRODUCTION FACILITIES

2

Abandoned Alam Station

ALAM METERING

STATION

FARHA

OIL PROCESSING & MOVEMENT

SAIWAN PF

QA PDO Station

SAIWAN WIFEXISTING

Early Production

Facility

FUTUREQARN ALAM METERING

STATION

8” P

DO

16”(16 Km)

FUTURENEW

8”

6

7

DRILLING PROGRAM

NOTE: 24 WELLS WERE SUCCESSFUL OUT OF 30 DRILLED EXPLORATION/APPRAISAL/DEVELOPMENT PRODUCERS WELLS - 80% SUCCESS

WELLS DRILL AS OF FEBRUARY 2012 FURTHER WELLS TO BE DRILLED

PRODUCER INJECTOR WATER SOURCE DRYHOLE PRODUCER INJECTOR WATER

SOURCE

BLOCK 3 24 5 1 3 31 20 10

BLOCK 4 6 0 0 3 2 0 0

TOTAL 30 5 1 6 33 20 10

PRODUCTION FIGURES

8

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

160,000.00

180,000.00

200,000.00

220,000.00

240,000.00

260,000.00

280,000.00

300,000.00

320,000.00

340,000.00

360,000.00

380,000.00

400,000.00

Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12

Farha Saiwan

20112010 2012

15,865. 13,741.36

44,784.62

28,283.13

36,693.74

22,588.0513,949.93

21,006.01

32,943.75

80,500.63

104,396.39

131,692.23

151,966.82

191,862.11

215,924.17

195681.17

254,972.96

327,323.01

315,004.66

377,946.85

MMBO

CCED OMANMONTHLY OIL PRODUCTION

9

OVER 7,000,000 KM DRIVEN (CRUDE HAULAGE) WITH ONLY ONE RTA.

OPERATION STARTED WITH FOUR (4) TANKERS AND INCREASED TO THIRTY ONE (31).

HIGHEST DAILY VOLUME TRANSPORTED; 14,498 BARRELS.HIGHEST DAILY NUMBER OF TANKERS OFFLOADED IN ALAM IS

63.HIGHEST MONTHLY VOLUME TRANSPORTED; MARCH 2012

MTD 377,947 BARRELS. HIGHEST MONTHLY KM DRIVEN FEBRUARY 2012 MTD 542,174

KM.

CRUDE OIL TRUCKING OPERATION

9 9

10

PERMANENT PRODUCTION FACILITIES

11

PERMANENT PRODUCTION FACILITIES

WHY CCED IS A SUCCESS1. TEAM WORK2. TEAM EMPOWERMENT3. LEADERSHIP4. SKILLED PEOPLE5. PLANNING, PLANNING, PLANNING6. COMMUNICATION7. RELATIONSHIP8. SIMULTANEOUS APPRAISAL AND DEVELOPMENT

12

HEADCOUNT 2008-2012

13

2008 2009 2010 2011 410000

20

40

60

80

100

120

140

160

LocalsExpats

OMANIZATION PLAN 2008 - 2015

2008 2009 2010 2011 2012 2013 2014 20150

10

20

30

40

50

60

70

80

90

Local %Expat %

YEAR

PERC

ENT

(%)

14

EMPLOYEE TOTALSDescription Number of Employees

as of 21st April 2012

OMANI NATIONALS CURRENTLY WORKING IN CCED 141 (52 Muscat + 89 Field)

EXPATS CURRENTLY WORKING IN CCED 67

OMANIZATION % 68%

OMANI NATIONALS TO BE RECRUITED 2012

46Operators & Technicians

EXPATS TO BE RECRUITED IN 2012

19Managers/Technical

15

16

BLOCKS 3 & 4 INVESTMENT

INVESTMENT 2010 – 2012:

OVER $ 300 MILLION USD

PLANNED INVESTMENT 2013 – 2017:

OVER $ 500 MILLION USD

ENHANCED OIL RECOVERY1. PRIMARY

2. WATER INJECTION AS SECONDARY RECOVERY – PILOT STARTED.

3. CHEMICAL, SURFACTANT OR MICROBIAL AS TERTIARY RECOVERY

17

ENHANCED OIL RECOVERY4. VAST EXTRA HEAVY OIL

RESERVES WHICH REQUIRES THE UTILIZATION OF THERMAL RECOVERY METHODS.

18

TOTAL NEW FIELD EXPLORATION IN THE WORLD

$120

$100

$80

$60

$40

$20

$0

$/BA

RREL

IN 2

007

USD

70,000

60,000

50,000

40,000

30,000

0

NU

MBE

R O

F N

EW F

IELD

WIL

DCAT

S DR

ILLE

D IN

THE

WO

RLD

$140

20,000

10,000

Data Source – IHS

MAJOR

INDEPENDENT

NOCs

OIL PRICE

1992-1996

75%

8%24,623

17%

1987-1991

75%

8%36,062

17%

1982-1986

84%

6%63,935

10%

1977-1981

84%

6%61,943

10%

2002-2006

87%

6%35,954

7%

1997-2001

76%

10%22,299

14%

19