Regional Oil & Gas · Lukoil to resume spot base oil supply to China starting June (ICIS news, 22 May 2014) Indonesia remains committed to oil & gas development (Upstream, 22 May

23 May 2014

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SEE PAGE 10 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Regional Oil & Gas Grease Spot – 23 May 2014 Overnight, Henry Hub price was down 2.5% while other indices we

track remained largely flat.

News Headlines China April fuel oil production volume down 8.37% MoM (ICIS C1,

21 May 2014)

China independent refiners’ capacity utilisation at five-month high (ICIS C1, 22 May 2014)

Lukoil to resume spot base oil supply to China starting June (ICIS news, 22 May 2014)

Indonesia remains committed to oil & gas development (Upstream, 22 May 2014)

India may cut urea imports (ICIS news, 22 May 2014)

Petronas Canadian LNG project in crunch mode (Upstream, 22 May 2014)

China’s Western Natural Gas breaks ground on Ulanqab LNG facility (ICIS news, 22 May 2014)

Korea’s Kumho continues to run butadiene at 50% on feedstock shortage (Platts, 21 May 2014)

Dragon Oil drilling activity at Baragatan not so smooth (Upstream, 22 May 2014)

Japan spot LNG priced at USD16/MMBtu in April (Platts, 21 May 2014)

Our Latest Reports Singapore Offshore & marine – An uninspiring first quarter

(NEUTRAL)

UMW Oil & Gas Corporation – No surprises (BUY, TP MYR5.15)

Dialog Group – Earnings shortfall (BUY, TP MYR3.90)

Analysts HK/CHINA Howard Wong (852) 2268 0648 [email protected] INDIA Jigar Shah (91) 22 6623 2601 [email protected] INDONESIA Pandu Anugrah (62) 21 2557 1137 [email protected] MALAYSIA Liaw Thong Jung (603) 2297 8688 [email protected] PHILIPPINES Bianca Solema (63) 2 849 8835 [email protected] Laura Dy-Liacco (63) 2 849 8840 [email protected] SINGAPORE Yeak Chee Keong (65) 6432 1460 [email protected] THAILAND Sutthichai Kumworachai (66) 2658 6300 x 1400 [email protected] VIETNAM Le Nguyen Nhat Chuyen (84) 8 44 55 5 888 x 8082 [email protected] Truong Quang Binh (84) 4 44 555 888 x 8087 [email protected]

Major Oil & Gas Prices and Indexes (closing as of 22 May 2014)

Dollar Change

Bloomberg Ticker Units Last price Chg. 1D 1D 1W 1M

Crude Oil (Brent) COA COMDTY USD/bbl. 110.36 -0.19 -0.2% 1.2% 1.3%

Crude Oil (WTI) CLA COMDTY USD/bbl. 103.74 -0.33 -0.3% 2.6% 2.6%

Dubai Fateh Spot PGCRDUBA Index USD/bbl. 106.84 0.36 0.3% 1.0% 0.7%

China Daqing Spot APCRDAQG Index USD/bbl. 110.83 0.27 0.2% 0.3% -0.9%

NYMEX Henry Hub NGA COMDTY USD/MMBtu 4.36 -0.11 -2.5% -2.5% -8.4%

LNG Northeast Asia CFR JKMSGM1 Index USD/MMBtu 14.40 0.00 0.0% 5.5% -3.7%

Singapore 92 RON Spot MOGFM92S Index USD/bbl. 117.96 0.10 0.1% 0.8% -0.3%

Gasoil 500 ppm SG Spot GASL500P Index USD/bbl. 122.42 -0.24 -0.2% -0.5% -2.0%

3.5% 180cst Fuel SG Spot N6SH180S Index USD/mt 617.65 4.38 0.7% 1.9% 1.8%

Gold XAU CURNCY USD/Oz 1,294.10 2.06 0.2% -0.2% 0.8%

USD-CNY USDCNY CURNCY Fx rate 6.24 0.00 0.0% 0.1% 0.0%

DJI DJI INDEX Index 16,543.08 10.02 0.1% 0.6% 0.2%

S&P 500 SPX INDEX Index 1,892.49 4.46 0.2% 1.2% 0.7%

Source: Bloomberg, Maybank Kim Eng

*LNG Northeast Asia CFR is ICAPs JKM 1-month forward price for LNG to Platts assessment of the

spot physical LNG market. Markets are assessed by Platts at 4:30 p.m. Singapore time.

May 23, 2014 2

Regional Oil & Gas Sector

News Headlines

China April fuel oil production volume down

8.37% MoM (ICIS C1, 21 May 2014) Link

China reported April fuel oil output volume 8.37%

lower MoM to 2.19m tonnes. The decline in fuel oil

output was due to lower crude throughput. Fuel oil

output ratio was 5.53% in April, down from 5.70% in

March. YTD, China refined 8.41m tonnes of fuel oil,

up 4.5% YoY.

China independent refiners’ capacity utilisation at

five-month high (ICIS C1, 22 May 2014) Link

China independent refiners in Shandong were

running at an average capacity utilisation rate of

41.3% on Thursday, according to ICIS C1. The 41.3%

rate was 2.3% higher WoW and 8.8% higher YoY.

Lukoil to resume spot base oil supply to China

starting June (ICIS news, 22 May 2014) Link

Russia’s Lukoil plans to restart its base oil supply to

China in June amid rising output and weak demand

at home. Lukoil restarted its 480ktpa Group I base

oil plant in early May, said a Chinese importer on

Thursday.

Indonesia remains committed to oil & gas

development (Upstream, 22 May 2014) Link

Indonesia remains committed to oil & gas

development even as the current government only

has six months before its term ends, said Vice

President Boediono.

India may cut urea imports (ICIS news, 22 May

2014) Link

India’s new government may reduce urea imports as

it awaits further rain forecast to make a final

decision, said officials in the department of

fertilizers on Thursday.

Petronas Canadian LNG project in crunch mode

(Upstream, 22 May 2014) Link

Petronas has proven about half of the 15tcf reserve

target for its Canadian LNG project and the

company plans to drill aggressively through the

summer before the FID on the USD32.9b project by

end 2014.

China’s Western Natural Gas breaks ground on

Ulanqab LNG facility (ICIS news, 22 May 2014) Link

China’s Inner Mongolia Western Natural Gas has

begun construction of a 2mmcm/d LNG plant in

Ulanqab, Inner Mongolia on Thursday, said a

company source. The project is worth USD192m and

will likely come online in 2H15.

Korea’s Kumho continues to run butadiene at 50%

on feedstock shortage (Platts, 21 May 2014) Link

South Korea’s Kumho Petrochemical will continue to

run its butadiene facility at 50% utilisation due to

crude C4 feedstock shortage, according to a

company source. Both of Kumho’s 150ktpa

butadiene plant in Yeosu and 90ktpa butadiene

plant in Ulsan are running at 50% utilisation.

Dragon Oil drilling activity at Baragatan not so

smooth (Upstream, 22 May 2014) Link

Dubai-based Dragon Oil’s JV partner Nido Petroleum

has encountered an unstable geological zone while

drilling the Baragatan-1 well. Dragon is paying over

50% of the drilling costs plus USD3.4m as a

compensation for Nido’s past exploration costs, in

exchange for a 40% stake in the project.

Japan spot LNG priced at USD16/MMBtu in April

(Platts, 21 May 2014) Link

The average spot LNG price for Japan was USD16

per MMBtu, down 12.6% MoM, according to data

released by METI.

May 23, 2014 3

Regional Oil & Gas Sector

Our Latest Reports

Offshore & Marine NEUTRAL

An uninspiring first quarter Date: 22 May 2014

Link

Post 1Q14 results, we favour OSV beneficiaries (Vard, Nam Cheong) and

those with strong niches (Ezion, Mermaid).

Is was an uninspiring quarter with only one posting positive earnings

surprise, five below and four within expectations.

Maintain NEUTRAL on the sector. We see rising near-term challenges:

Budget cuts and cost hikes.

UMW Oil & Gas Corporation BUY

No surprises Date: 20 May 2014

Target Price: MYR3.90 Link

1Q14 net profit of MYR53m tracks expectations; on target for a stronger

2H14.

Expect more contract announcements in 2014 with three new deliveries in

the pipeline (Naga 5, 6 & 7).

Reiterate BUY; TP unchanged at MYR5.15 on 23x 2015PER.

Dialog Group BUY

Earnings shortfall Date: 16 May 2014

Target Price: MYR3.90 Link

9MFY14 net profit of MYR164m made up 67%/68% of ours/consensus full

year forecasts.

Lowering FY14/15/16 earnings forecasts by 8%/4%/4%; long-term prospects

remain bright with RAPID go-ahead.

Maintain BUY and SOP-based TP of MYR3.90 which has re-rating potential.

Perisai Petroleum BUY

Losses expected Date: 16 May 2014

Target Price: MYR1.76 Link

1Q14 net loss of MYR3m was within our estimates but below consensus.

Expect earnings to pick up in 2H14, driven by maiden contribution from its

JU rig, Pacific 101.

Maintain BUY and MYR1.76 TP, pegged to 14x FY15 PER.

May 23, 2014 4

Regional Oil & Gas Sector

SapuraKencana Petroleum BUY

Contracts galore Date: 16 May 2014

Target Price: MYR5.30 Link

Secures 5 contracts worth USD312m (MYR1b).

Contracts momentum improving, signing the GSA is a catalyst.

Maintain BUY and MYR5.30 SOP TP.

Nam Cheong Ltd BUY

Strong showing as expected Date: 15 May 2014

Target Price: SGD0.41 Link

1Q14 PATMI of MYR71.1m (+98.7 YoY, +0.9% QoQ) within expectations,

buoyed by higher number of vessel deliveries.

Management exudes strong confidence in order win outlook. Expects

shipbuilding margin to meet high end of 15-20% guidance.

Maintain BUY with TP unchanged at SGD0.41, pegged to 9x FY14E P/E.

Petron Corp BUY

Less volatile 1Q14 Date: 14 May 2014

Target Price: PHP15.90 Link

1Q14 reported net income reached PHP2.23b, accounting for 29% of our

full-year 2014 forecast.

Although flattish YoY, 1Q14 is historically one of the best performing

quarters as stable oil prices boosted margins.

RMP-2 is now 98% complete and on-track for start of operations in 4Q14.

Maintain BUY with TP of PHP15.90 pending detailed FS.

Mermaid Maritime BUY

Weaker subsea a huge drag Date: 14 May 2014

Target Price: SGD0.59 Link

2QFY9/14 PATMI plunged 60.7% QoQ to USD5.2m, coming in below our

expectations.

Subsea utilisation weak due to seasonality and vessel mobilisation.

Management expects 2HF9/14 to catch up.

Turnaround story still intact. Maintain BUY with lower TP of SGD0.59,

pegged to 14x FY9/14E P/E.

May 23, 2014 5

Regional Oil & Gas Sector

Asia Oil & Gas Valuation Comparison

KE Price Target Mkt Cap 90D T/O P/E (X) EV/EBITDA (X) RoE % P/B (X) Yield %

Company Ticker Rating 22-May Price USDb USDm 2013 2014E 2013 2014E 2013 2013 2013

China PetroChina - H 857 HK NR 9.47 NR 224.1 96.3 10.6 10.5 6.1 5.3 11.8 1.2 4.2 Sinopec - H 386 HK NR 7.06 NR 97.7 110.3 9.8 9.0 5.3 4.8 12.2 1.1 4.3 CNOOC LTD 883 HK NR 13.62 NR 78.4 100.6 8.6 8.6 3.9 3.8 17.3 1.4 4.2 India ONGC ONGC IN NR 392.80 NR 57.6 30.3 13.9 12.8 7.6 5.8 16.8 2.2 2.4 Reliance Industries RIL IN NR 1,100.80 NR 60.9 73.7 15.5 13.3 12.8 10.2 11.9 1.8 0.8 Cairn India CAIR IN buy 346.10 443.00 11.3 15.6 5.5 4.8 3.7 3.1 25.1 1.4 3.3 BPCL BPCL IN NR 559.65 NR 6.9 14.0 21.5 18.5 8.3 9.6 11.5 2.4 2.0 HPCL HPCL IN NR 431.65 NR 2.5 10.4 29.2 15.9 13.6 11.3 3.7 1.1 2.0 Japan INPEX 1605 JT NR 1,453.00 NR 20.9 66.3 11.6 12.3 2.8 2.5 7.9 0.9 1.2 JAPEX 1662 JT NR 4,165.00 NR 2.3 11.3 n.a. 8.8 8.0 5.7 -0.2 0.6 1.0 JX Holding 5020 JT NR 523.00 NR 12.8 56.7 8.2 9.1 9.9 9.8 8.7 0.7 3.1

Showa Shell 5002 JT NR 1,034.00 NR 3.8 15.3 6.5 11.6 5.5 7.0 21.9 1.3 3.5 TonenGeneral 5012 JT NR 925.00 NR 5.1 12.5 14.7 34.2 10.6 15.4 7.9 1.1 4.1 Idemitsu 5019 JT NR 2,076.00 NR 3.3 8.6 6.6 11.6 7.5 8.5 8.1 0.5 2.4 Cosmo 5007 JT NR 196.00 NR 1.6 6.1 n.a. 10.5 10.4 9.8 -31.4 0.7 0.0 Malaysia Gas Malaysia GMB MK hold 3.60 3.80 1.4 1.0 27.0 23.5 17.1 14.4 17.0 4.6 3.7 Petronas Gas PTG MK hold 24.40 23.50 15.0 4.7 23.2 29.0 18.1 15.7 21.4 4.7 2.3 Philippines Petron Corp PCOR PM buy 12.00 15.90 2.6 2.9 26.7 15.0 14.3 10.1 6.9 1.2 0.4 Phoenix Petroleum Philippines PNX PM buy 6.10 7.22 0.2 0.1 13.9 8.4 9.4 7.3 12.7 1.4 1.3 Taiwan Formosa Petrochemical 6505 TT NR 73.80 NR 23.3 3.9 26.2 24.0 18.0 15.2 12.0 2.9 3.5 South Korea S-Oil 010950 KS NR 58,100 NR 6.4 14.0 23.4 15.9 12.9 9.8 5.2 1.2 2.3 SK Innovation 096770 KS NR 114,500 NR 10.3 37.4 45.2 10.3 19.5 8.4 1.8 0.8 2.8 GS Holdings 078930 KS NR 45,750 NR 4.1 10.2 16.9 8.9 17.5 11.7 5.4 0.9 3.0 Thailand PTT Global Chemical PCL PTTGC TB buy 68.75 87.00 9.5 22.0 9.3 8.3 7.0 7.3 14.4 1.3 2.4

PTT PCL PTT TB buy 308.00 395.00 27.0 31.9 9.3 7.4 5.8 5.5 14.7 1.3 3.9 Thai Oil PCL TOP TB sell 51.50 65.00 3.2 5.5 10.1 9.0 6.7 7.1 11.7 1.2 4.5 Vietnam PetroVietnam Gas GAS VN buy 92,000 103,000.00 8.3 1.8 15.1 13.8 9.3 8.5 40.8 5.2 6.2

Asian Oil & Gas average 12.6 11.5 7.6 6.5 13.2 1.5 3.5

CNOOC LTD 883 HK NR 13.62 NR 78.4 100.6 8.6 8.6 3.9 3.8 17.3 1.4 4.2 Cairn India CAIR IN buy 346.10 443.00 11.3 15.6 5.5 4.8 3.7 3.1 25.1 1.4 3.3 INPEX 1605 JT NR 1,453.00 NR 20.9 66.3 11.6 12.3 2.8 2.5 7.9 0.9 1.2 JAPEX 1662 JT NR 4,165.00 NR 2.3 11.3 n.a. 8.8 8.0 5.7 -0.2 0.6 1.0 Gas Malaysia GMB MK hold 3.60 3.80 1.4 1.0 27.0 23.5 17.1 14.4 17.0 4.6 3.7 Petronas Gas PTG MK hold 24.40 23.50 15.0 4.7 23.2 29.0 18.1 15.7 21.4 4.7 2.3 PTT E&P PTTEP TB buy 157.00 188.00 19.1 19.5 11.1 9.4 4.1 3.8 16.0 1.6 3.8

PetroVietnam Gas GAS VN buy 92,000 103,000 8.3 1.8 14.2 12.0 9.3 7.4 40.6 5.2 3.4

Asian E&P average 11.0 11.2 5.6 5.0 17.8 1.9 3.4

JX Holding 5020 JT NR 523.00 NR 12.8 56.7 8.2 9.1 9.9 9.8 8.7 0.7 3.1 Showa Shell 5002 JT NR 1,034.00 NR 3.8 15.3 6.5 11.6 5.5 7.0 21.9 1.3 3.5 TonenGeneral 5012 JT NR 925.00 NR 5.1 12.5 14.7 34.2 10.6 15.4 7.9 1.1 4.1 Idemitsu 5019 JT NR 2,076.00 NR 3.3 8.6 6.6 11.6 7.5 8.5 8.1 0.5 2.4 Cosmo 5007 JT NR 196.00 NR 1.6 6.1 n.a. 10.5 10.4 9.8 -31.4 0.7 0.0 BPCL BPCL IN NR 559.65 NR 6.9 14.0 21.5 18.5 8.3 9.6 11.5 2.4 2.0 HPCL HPCL IN NR 431.65 NR 2.5 10.4 29.2 15.9 13.6 11.3 3.7 1.1 2.0 Petron Corp PCOR PM buy 12.00 15.90 2.6 2.9 30.0 34.3 12.9 10.1 5.0 1.2 0.4 Phoenix Petroleum Philippines PNX PM buy 6.10 7.22 0.2 0.1 13.9 8.4 9.4 7.3 12.7 1.4 1.3 S-Oil 010950 KS NR 58,100 NR 6.4 14.0 23.4 15.9 12.9 9.8 5.2 1.2 2.3

SK Innovation 096770 KS NR 114,500 NR 10.3 37.4 45.2 10.3 19.5 8.4 1.8 0.8 2.8 GS Holdings 078930 KS NR 45,750 NR 4.1 10.2 16.9 8.9 17.5 11.7 5.4 0.9 3.0 Formosa Petrochemical 6505 TT NR 73.80 NR 23.3 3.9 26.2 24.0 18.0 15.2 12.0 2.9 3.5 Bangchak Petroleum BCP TB buy 30.25 41.00 1.3 3.2 8.9 8.4 8.5 6.2 13.9 1.2 4.5 IRPC PCL IRPC TB hold 3.60 3.74 2.3 3.5 90.0 24.0 24.0 14.0 1.1 1.0 2.8 PTT Global Chemical PCL PTTGC TB buy 68.75 87.00 9.5 22.0 9.3 8.3 7.0 7.3 14.4 1.3 2.4 Thai Oil PCL TOP TB sell 51.50 65.00 3.2 5.5 10.1 9.0 6.7 7.1 11.7 1.2 4.5

Asian Refiners average 22.1 16.4 13.1 10.9 8.7 1.5 2.9

Exxon Mobile XOM US NR 101.50 NR 435.9 1,072.8 13.8 13.1 8.0 6.0 19.2 2.5 2.4 Chevron CVX US NR 123.63 NR 235.3 717.5 11.1 11.5 5.9 4.6 15.0 1.6 3.2 ConocoPhillips COP US NR 78.46 NR 96.3 408.0 10.6 12.5 5.8 4.7 18.3 1.8 3.4

Shell RDSA LN NR 2,368.50 NR 258.3 17,478.7 14.2 11.0 5.6 4.9 9.2 1.4 4.9 BP plc BP/ LN NR 508.20 NR 158.0 23,549.4 6.4 10.6 5.8 4.7 18.9 1.2 4.6 Gazprom GAZP RX NR 144.78 NR 99.8 289.4 2.9 2.7 2.3 2.3 13.0 0.4 5.2 Rosneft Oil ROSN LI NR 6.67 NR 70.7 75.8 5.3 5.6 n.a. n.a. 20.2 n.a. n.a. LUKOIL LKOH RX NR 1,965.20 NR 48.7 86.4 5.9 4.3 3.3 2.9 10.3 0.6 6.1 MOL Hunarian O&G MOL HB NR 13,715.00 NR 6.5 4.2 85.7 9.7 4.6 4.9 1.3 0.8 3.4 Petroleo Brasileiro PETR3 BZ NR 16.56 NR 100.3 86.6 9.2 8.2 7.3 6.2 6.8 0.6 3.6 Total FP FP NR 52.05 NR 169.0 338.3 14.0 10.9 5.1 4.7 11.7 1.6 4.6 Eni S.p.A. ENI IM NR 18.38 NR 91.2 439.5 12.9 14.0 4.9 3.8 8.8 1.1 2.9 Repsol S.A. REP SM NR 20.31 NR 36.7 213.6 135.4 14.8 6.9 6.7 0.7 1.0 4.8 Stateoil ASA STL NO NR 180.40 NR 96.7 91.1 14.4 11.5 2.6 2.5 11.8 1.6 3.9 OMV AG OMV AV NR 29.72 NR 13.3 12.9 8.3 7.8 3.2 3.4 9.9 0.8 4.2 Galp Energia, SGPS, S.A. GALP PL NR 12.89 NR 14.6 23.2 56.0 35.6 14.4 11.3 3.6 2.1 2.2

Global Oil Major average 14.3 11.0 5.9 4.9 14.0 1.6 3.8

Source: Bloomberg, Maybank Kim Eng *UR = Under Review *NR = Not Rated *All forward-looking estimates and multiples for companies not under MayBank Kim Eng’s coverage, including companies currently under review, are from Bloomberg consensus. *Average multiples and yields are weighted by market capitalization.

May 23, 2014 6

Regional Oil & Gas Sector

Asia Oil Service Valuation Comparison

KE Price Target Mkt Cap 90D T/O P/E (X) EV/EBITDA (X) RoE % P/B (X) Yield %

Company Ticker Rating 22-May Price USDb USDm 2013 2014E 2013 2014E 2013 2013 2013

China

Anton Oilfield Services 3337 HK NR 5.90 NR 1.7 5.5 26.3 22.9 13.0 10.5 18.0 4.4 1.2

China Oilfield Services-H 2883 HK NR 19.06 NR 12.3 25.1 10.1 9.8 7.7 7.1 19.3 1.8 2.8

Chu Kong Petroleum 1938 HK NR 2.75 NR 0.4 0.5 54.5 16.9 20.7 14.0 1.4 0.6 0.0

Hilong Holding 1623 HK NR 4.58 NR 1.0 4.8 17.5 12.3 8.1 6.8 14.4 2.3 2.1

Honghua Group 196 HK NR 1.84 NR 0.8 2.7 8.6 7.1 6.2 5.4 11.7 1.0 3.3

Sinopec Engineering-H 2386 HK NR 8.81 NR 5.0 7.5 7.5 7.4 3.6 3.3 26.1 1.5 4.6

SPT Energy 1251 HK NR 4.47 NR 0.9 3.1 18.0 14.8 8.5 6.4 17.8 3.0 1.4

Malaysia

Alam Maritim AMRB MK buy 1.52 1.90 0.4 2.0 15.0 12.5 14.4 15.1 14.1 2.0 0.2

Barakah Petroleum BARAKAH MK buy 1.64 1.90 0.3 1.6 19.3 19.8 12.0 9.4 27.0 4.6 0.0

Bumi Armada BAB MK buy 3.90 5.00 3.6 2.7 26.5 24.2 10.9 13.1 10.6 2.6 0.8

Coastal Contracts COCO MK NR 4.85 NR 0.8 1.2 15.5 12.6 9.7 7.0 16.4 2.3 1.3

Daya Materials DAYA MK NR 0.32 NR 0.1 2.4 118.5 10.0 7.5 6.1 1.4 1.7 0.8

Dayang Enterprise DEHB MK NR 3.58 NR 0.9 1.1 29.7 13.9 9.5 8.7 23.6 4.4 1.6

Dialog DLG MK buy 3.70 3.90 2.8 5.0 45.8 31.4 30.8 27.8 15.2 6.6 0.9

KNM KNMG MK NR 0.74 NR 0.3 6.9 45.1 20.4 n.a. n.a. 1.2 0.5 0.0

MMHE MMHE MK buy 3.90 4.20 1.9 0.5 26.4 35.8 20.1 22.0 9.3 2.4 1.3

Muhibbah Engineering MUHI MK NR 2.77 NR 0.4 1.5 13.4 10.3 8.6 7.7 16.8 2.1 1.6

Perdana Petroleum PETR MK buy 1.82 2.55 0.4 0.9 21.0 14.0 10.8 10.7 12.1 2.4 0.0

Perisai Petroleum PPT MK buy 1.63 1.76 0.6 1.4 22.4 27.6 17.8 27.8 10.4 2.0 0.0

Petra Energy PENB MK NR 2.56 NR 0.3 0.1 70.1 19.7 9.0 7.8 2.8 1.7 0.4

SapuraKencana SAKP MK buy 4.19 5.30 7.8 11.4 40.0 23.1 31.9 19.0 13.8 3.3 0.0

TH Heavy Engineering RH MK NR 0.91 NR 0.3 1.8 109.0 18.9 11.5 7.1 2.4 2.4 0.0

UMW O&G UMWOG MK buy 3.99 5.15 2.7 4.3 35.0 30.7 18.4 18.9 12.4 3.0 0.2

UZMA UZMA MK NR 5.89 NR 0.2 0.4 23.1 16.9 11.7 9.9 29.6 6.0 0.3

Wah Seong WSC MK hold 1.97 1.33 0.5 0.6 47.2 18.2 9.3 10.9 3.3 1.6 2.0

Yinson YNS MK buy 5.10 6.44 0.8 0.9 46.2 23.2 53.0 17.1 15.4 5.7 0.3

Singapore

Cosco Corp COS SP sell 0.72 0.68 1.3 0.7 52.6 27.7 11.0 10.9 2.3 1.2 1.4

Dyna-Mac DMHL SP NR 0.39 NR 0.3 0.4 13.8 12.4 7.6 6.1 15.2 2.0 5.2

Ezion EZI SP buy 2.17 2.70 2.3 12.6 10.6 13.1 10.7 15.1 28.6 3.0 0.0

Ezra EZRA SP NR 1.05 NR 0.8 2.2 15.3 17.0 14.1 10.4 5.4 0.8 0.6

Keppel KEP SP hold 10.67 10.74 15.5 27.5 10.4 11.8 11.5 10.4 19.5 2.0 3.7

Mermaid Maritime MMT SP buy 0.47 0.59 0.5 1.0 18.9 9.7 6.3 6.6 3.4 1.0 0.2

Nam Cheong NCL SP buy 0.38 0.45 0.6 1.7 9.6 8.2 8.5 8.3 26.9 2.2 1.4

SembCorp Marine SMM SP hold 4.01 4.04 6.7 8.8 15.1 12.2 8.4 7.0 21.7 3.1 2.7

Swiber SWIB SP hold 0.56 0.59 0.3 0.7 4.4 5.2 14.9 8.2 15.2 0.6 0.0

Vard Holdings VARD SP buy 1.01 1.27 0.9 3.1 15.7 9.2 11.1 10.7 10.4 1.5 0.0

Yangzijiang Shipbuilding YZJSGD SP hold 1.13 1.19 3.5 8.0 6.9 9.0 7.7 8.0 18.6 1.2 4.4

Vietnam

PetroVietnam Drilling & Well PVD VN NR 80,500.00 NR 1.0 1.9 10.6 11.1 6.6 5.5 22.4 2.2 2.8

PetroVietnam Technical Serivices PVS VN NR 26,100.00 NR 0.6 4.0 7.1 7.0 3.3 3.0 21.6 1.4 7.7

Asian Oil Service average 19.7 15.5 13.2 11.2 17.5 2.5 2.3

Halliburton HAL US NR 63.41 NR 53.6 455.9 26.8 16.0 8.2 6.8 14.5 4.0 0.8

Schlumberger SLB US NR 101.60 NR 132.1 566.8 20.0 17.9 9.9 8.8 18.1 3.4 1.2

Weatherford Int'l WFT US NR 21.15 NR 16.3 168.3 n.a. 19.7 7.9 6.6 -4.1 2.0 0.0

Transocean RIG US NR 42.61 NR 15.4 224.3 11.0 10.1 6.8 7.1 8.6 0.9 5.8

Global Oil Service Average 21.1 17.0 9.1 8.0 14.9 3.2 1.4

Source: Bloomberg, Maybank Kim Eng *UR = Under Review *NR = Not Rated * All forward-looking estimates and multiples for companies not under MayBank Kim Eng’s coverage, including companies currently under review, are from Bloomberg consensus. *Average multiples and yields are weighted by market capitalization.

May 23, 2014 7

Regional Oil & Gas Sector

Figure 1: Brent & Brent-WTI Spread Figure 2: Gross Refining Margin – Singapore & China

Source: Bloomberg, Maybank Kim Eng Source: Singapore GRM: Bloomberg; China GRM: Maybank Kim Eng estimates

Figure 3: Singapore Gasoline & Gasoline-Dubai Spread Figure 4: Singapore Gasoil & Gasoil-Dubai Spread

Source: Bloomberg, Maybank Kim Eng Source: Bloomberg, Maybank Kim Eng

Figure 5: Singapore Jet Kerosene & Jet-Dubai Spread Figure 6: Singapore 180cst Fuel Oil & Fuel Oil-Dubai Spread

Source: Bloomberg, Maybank Kim Eng Source: Bloomberg, Maybank Kim Eng

*Volatility in Singapore GRM is typically due to the volatile nature of spot Minas crude price

90

95

100

105

110

115

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

3

5

7

9

11

13

15

17

19

USD/bbl USD/bbl Brent-WTI Spread (RHS)

Brent active contract (LHS)

0

2

4

6

8

10

12

14

16

18

20

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

USD/bbl GRM - Singapore

GRM - China

100

105

110

115

120

125

130

135

140

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

0

5

10

15

20

25

USD/bbl USD/bbl Gasoline-Dubai Spread (RHS)

Singapore Gasoline Spot (LHS)

105

110

115

120

125

130

135

140

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

10

12

14

16

18

20

22

24

USD/bbl USD/bbl Gasoil-Dubai Spread (RHS)

Singapore Gasoil Spot (LHS)

100

105

110

115

120

125

130

135

140

145

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

10

12

14

16

18

20

22

24

26

USD/bbl USD/bbl Jet-Dubai Spread (RHS)

Singapore Jet Kerosene Spot (LHS)

-25

-20

-15

-10

-5

0

85

87

89

91

93

95

97

99

101

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

USD/bbl USD/bbl Singapore 180cst Fuel Oil Spot (LHS)

Fuel Oil-Dubai Spread (RHS)

May 23, 2014 8

Regional Oil & Gas Sector

Figure 7: Jackup Day Rates Figure 8: Semisub Day Rates

Source: Bloomberg, Maybank Kim Eng Source: Bloomberg, Maybank Kim Eng

Figure 9: Drillship Day Rates Figure 10: Jackup Utilisation

Source: Bloomberg, Maybank Kim Eng Source: Bloomberg, Maybank Kim Eng

Figure 11: Semisub Utilisation Figure 12: Drillship Utilisation

Source: Bloomberg, Maybank Kim Eng Source: Bloomberg, Maybank Kim Eng

50

70

90

110

130

150

170

190

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

USD/day <250 WD 250 WD

300 WD 300+ WD

200

250

300

350

400

450

500

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

USD/day <1,500 WD 1,500+ WD 4,000 WD

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

USD/day <4,000 WD 4,000+ WD

40

50

60

70

80

90

100

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

% <250 WD 250 WD

300 WD 300+ WD

40

50

60

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80

90

100

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

% <1,500 WD 1,500+ WD 4,000 WD

50

60

70

80

90

100

110

Feb 10 Aug 10 Feb 11 Aug 11 Feb 12 Aug 12 Feb 13 Aug 13 Feb 14

% <4,000 WD 4,000+ WD

May 23, 2014 9

Regional Oil & Gas Sector

Research Offices

REGIONAL

WONG Chew Hann, CA

Regional Head of Institutional Research

(603) 2297 8686 [email protected]

ONG Seng Yeow

Regional Head of Retail Research

(65) 6432 1453

[email protected]

Alexander GARTHOFF

Institutional Product Manager

(852) 2268 0638

[email protected]

ECONOMICS

Suhaimi ILIAS

Chief Economist

Singapore | Malaysia

(603) 2297 8682

[email protected]

Luz LORENZO

Philippines

(63) 2 849 8836

[email protected]

Tim LEELAHAPHAN

Thailand

(662) 658 1420 [email protected]

JUNIMAN

Chief Economist, BII

Indonesia

(62) 21 29228888 ext 29682

[email protected]

Josua PARDEDE

Economist / Industry Analyst, BII

Indonesia

(62) 21 29228888 ext 29695

[email protected]

MALAYSIA

WONG Chew Hann, CA Head of Research (603) 2297 8686 [email protected] • Strategy • Construction & Infrastructure

Desmond CH’NG, ACA (603) 2297 8680 [email protected] • Banking & Finance

LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas - Regional • Shipping

ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional

Mohshin AZIZ (603) 2297 8692 [email protected] • Aviation - Regional • Petrochem

YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media

TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos

WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property & REITs

LEE Yen Ling (603) 2297 8691 [email protected] • Building Materials • Glove Producers

CHAI Li Shin (603) 2297 8684 [email protected] • Plantation • Construction & Infrastructure

KANG Chun Ee (603) 2297 8675 [email protected] • Consumer

Ivan YAP (603) 2297 8612 [email protected] • Automotive

LEE Cheng Hooi Regional Chartist (603) 2297 8694 [email protected]

Tee Sze Chiah Head of Retail Research

(603) 2297 6858 [email protected]

HONG KONG / CHINA

Howard WONG Head of Research (852) 2268 0648 [email protected] • Oil & Gas - Regional

Alexander LATZER (852) 2268 0647 [email protected] • Metals & Mining - Regional

Jacqueline KO, CFA (852) 2268 0633 [email protected] • Consumer

Karen KWAN (852) 2268 0640 [email protected] • Property & REITs

Osbert TK TANG, CFA (86) 21 5096 8370 [email protected] • Transport & Industrials

Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy

Simon QIAN, CFA (852) 2268 0634 [email protected] • Telecom & Internet

Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials - Regional

Warren LAU (852) 2268 0644 [email protected] • Technology – Regional

William YANG (852) 2268 0675 [email protected] • Technology – Regional

INDIA

Jigar SHAH Head of Research

(91) 22 6623 2601

[email protected]

• Oil & Gas • Automobile • Cement

Anubhav GUPTA

(91) 22 6623 2605

[email protected]

• Metal & Mining • Capital Goods • Property

Urmil SHAH

(91) 22 6623 2606 [email protected]

• Technology • Media

SINGAPORE

NG Wee Siang Head of Research (65) 6432 1467 [email protected] • Banking & Finance

Gregory YAP (65) 6432 1450 [email protected] • SMID Caps – Regional • Technology & Manufacturing • Telcos

Wilson LIEW

(65) 6432 1454 [email protected] • Property Developers

ONG Kian Lin (65) 6432 1470 [email protected] • S-REITs

James KOH (65) 6432 1431 [email protected] • Consumer - Regional

YEAK Chee Keong, CFA (65) 6432 1460 [email protected] • Offshore & Marine

Derrick HENG (65) 6432 1446 [email protected] • Transport (Land, Shipping & Aviation)

WEI Bin (65) 6432 1455 [email protected] • Commodity • Logistics • S-chips

John CHEONG (65) 6432 1461 [email protected] • Small & Mid Caps • Healthcare

TRUONG Thanh Hang (65) 6432 1451 [email protected] • Small & Mid Caps

INDONESIA

Wilianto IE Head of Research (62) 21 2557 1125 [email protected] • Strategy

Rahmi MARINA (62) 21 2557 1128 [email protected] • Banking & Finance

Aurellia SETIABUDI (62) 21 2953 0785 [email protected] • Property

Anthony YUNUS (62) 21 2557 1136 [email protected] • Consumer • Poultry

Isnaputra ISKANDAR (62) 21 2557 1129 [email protected] • Metals & Mining • Cement

Pandu ANUGRAH (62) 21 2557 1137 [email protected] • Infrastructure • Construction • Transport

Janni ASMAN (62) 21 2953 0784 [email protected] • Cigarette • Healthcare • Retail

PHILIPPINES

Luz LORENZO Head of Research (63) 2 849 8836 [email protected] • Strategy

Laura DY-LIACCO (63) 2 849 8840 [email protected] • Utilities • Conglomerates • Telcos

Lovell SARREAL (63) 2 849 8841 [email protected] • Consumer • Media • Cement

Rommel RODRIGO (63) 2 849 8839 [email protected] • Conglomerates • Property • Gaming • Ports/ Logistics

Katherine TAN (63) 2 849 8843 [email protected] • Banks • Construction

Ramon ADVIENTO (63) 2 849 8845 [email protected] • Mining

THAILAND

Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Consumer / Materials

Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 [email protected] • Financial Services

Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 [email protected] • Real Estate

Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 [email protected] • Services Sector

Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090 [email protected]

Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 [email protected] • Strategy

Padon VANNARAT (66) 2658 6300 ext 1450 [email protected] • Strategy

Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 [email protected] • Auto • Conmat • Contractor • Steel

Suttatip PEERASUB (66) 2658 6300 ext 1430 [email protected] • Media • Commerce

Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 [email protected] • Energy • Petrochem

Termporn TANTIVIVAT (66) 2658 6300 ext 1520 [email protected] • Property

Woraphon WIROONSRI (66) 2658 6300 ext 1560

[email protected] • Banking & Finance

Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 [email protected] • Transportation • Small cap

Chatchai JINDARAT (66) 2658 6300 ext 1401 [email protected] • Electronics

VIETNAM

LE Hong Lien, ACCA Head of Institutional Research (84) 844 55 58 88 x 8181 [email protected] • Strategy • Consumer • Diversified • Utilities

THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 844 55 58 88 x 8180 [email protected] • Real Estate • Construction • Materials

Le Nguyen Nhat Chuyen (84) 844 55 58 88 x 8082 [email protected] • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research (84) 8 44 555 888 x 8081 [email protected] • Food & Beverage • Oil&Gas • Banking

NGUYEN Trung Hoa, Dy Head of Retail Research (84) 8 44 555 888 x 8088 [email protected] • Macro • Steel • Real estate

TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 [email protected] • Technology • Utilities • Construction

TRUONG Quang Binh (84) 4 44 555 888 x 8087 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas

PHAM Nhat Bich (84) 8 44 555 888 x 8083 [email protected] • Consumer • Manufacturing • Fishery

NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical • Food & Beverage

May 23, 2014 10

Regional Oil & Gas Sector

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS

This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.

This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

Malaysia

Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.

Singapore

This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

Thailand

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.

Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect.

US

This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations.

UK

This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

May 23, 2014 11

Regional Oil & Gas Sector

Disclosure of Interest

Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies.

Singapore: As of 23 May 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.

Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.

Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.

As of 23 May 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS

Analyst Certification of Independence

The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings

Maybank Kim Eng Research uses the following rating system

BUY Return is expected to be above 10% in the next 12 months (excluding dividends)

HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)

SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

May 23, 2014 12

Regional Oil & Gas Sector

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

33rd Floor, Menara Maybank,

100 Jalan Tun Perak,

50050 Kuala Lumpur

Tel: (603) 2059 1888;

Fax: (603) 2078 4194

Singapore Maybank Kim Eng Securities Pte Ltd

Maybank Kim Eng Research Pte Ltd

9 Temasek Boulevard

#39-00 Suntec Tower 2

Singapore 038989

Tel: (65) 6336 9090

Fax: (65) 6339 6003

London Maybank Kim Eng Securities

(London) Ltd

6/F, 20 St. Dunstan’s Hill

London EC3R 8HY, UK

Tel: (44) 20 7621 9298

Dealers’ Tel: (44) 20 7626 2828

Fax: (44) 20 7283 6674

New York Maybank Kim Eng Securities USA

Inc

777 Third Avenue, 21st Floor

New York, NY 10017, U.S.A.

Tel: (212) 688 8886

Fax: (212) 688 3500

Stockbroking Business:

Level 8, Tower C, Dataran Maybank,

No.1, Jalan Maarof

59000 Kuala Lumpur

Tel: (603) 2297 8888

Fax: (603) 2282 5136

Hong Kong Kim Eng Securities (HK) Ltd

Level 30,

Three Pacific Place,

1 Queen’s Road East,

Hong Kong

Tel: (852) 2268 0800

Fax: (852) 2877 0104

Indonesia PT Maybank Kim Eng Securities

Plaza Bapindo

Citibank Tower 17th Floor

Jl Jend. Sudirman Kav. 54-55

Jakarta 12190, Indonesia

Tel: (62) 21 2557 1188

Fax: (62) 21 2557 1189

India Kim Eng Securities India Pvt Ltd

2nd Floor, The International 16,

Maharishi Karve Road,

Churchgate Station,

Mumbai City - 400 020, India

Tel: (91).22.6623.2600

Fax: (91).22.6623.2604

Philippines Maybank ATR Kim Eng Securities Inc.

17/F, Tower One & Exchange Plaza

Ayala Triangle, Ayala Avenue

Makati City, Philippines 1200

Tel: (63) 2 849 8888

Fax: (63) 2 848 5738

Thailand Maybank Kim Eng Securities

(Thailand) Public Company Limited

999/9 The Offices at Central World,

20th - 21st Floor,

Rama 1 Road Pathumwan,

Bangkok 10330, Thailand

Tel: (66) 2 658 6817 (sales)

Tel: (66) 2 658 6801 (research)

Vietnam Maybank Kim Eng Securities Limited

4A-15+16 Floor Vincom Center Dong

Khoi, 72 Le Thanh Ton St. District 1

Ho Chi Minh City, Vietnam

Tel : (84) 844 555 888

Fax : (84) 8 38 271 030

Saudi Arabia In association with

Anfaal Capital

Villa 47, Tujjar Jeddah

Prince Mohammed bin Abdulaziz

Street P.O. Box 126575

Jeddah 21352

Tel: (966) 2 6068686

Fax: (966) 26068787

South Asia Sales Trading Kevin FOY

[email protected]

Tel: (65) 6336-5157

US Toll Free: 1-866-406-7447

North Asia Sales Trading Alex TSUN

[email protected]

Tel: (852) 2268 0228

US Toll Free: 1 877 837 7635

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