1. Kinabalu Field - Nafas Baru A Journey – from No Potential to Rejuvenation
Every good project needs a slogan “Nafas Baru” - Breath New Life
Good in terms of Sabah which known for “land of Wind?”
TML commenced operatorship in Dec 2012
This presentation looks at different aspects of that 2 year journey
Other keys aspects of Kinabalu Oil PSC
1st brownfield redevelopment in Malaysia
Though PM3 is also very much a brown field
1st Progressive Volume Terms PSC
1st transfer of PSC from IOC to IOC and not to PCSB

2. 2012 Kinabalu Oil PSC Overview
Location Map
Block Details
2012 Kinabalu Oil PSC:
Progressive PSC Terms
Start Date: Dec 2012
Operator: Talisman (60%)
Partner: PETRONAS Carigali (40%)
Location
55 km NW of Labuan
28 km SW of Samarang
2 km SE of KNNAG
Field Water Depth: 56 m
Discovery: 1989 and First Oil: Dec 1997
Cum. Oil = MMstb
Kota Kinabalu
Kinabalu
Kimanis
SOGT
Labuan
LCOT & LGAS

3. The Journey Started with A Vision..
A New Lease of Life to an Ageing Asset
Maximizes hydrocarbon recovery to > 40%
Smooth transfer of operations
Reduce overall costs through innovative solutions
Accelerates development schedules
Vision for “Nafas Baru”: which was set out in our original BID and included in key conditions of PSC
Maximizes hydrocarbon recovery through major capital investment in both IOR and EOR projects
Accelerates development schedules to achieve early new oil production (Phased approach)
Reduces overall costs through innovations such as an integrated operations model with PCSB
Improves uptime and asset integrity to deliver more consistent production
Ensures a smooth transfer of operations from the existing operators
Improve uptime and asset integrity

4. “Quintupling” Technical Potential
The shared vision with PETRONAS and PCSB has progressively materialized..
After just over 18 months, we have achieved ~20,000 bopd potential through various initiatives
7,200
20,000
Asset Transfer
Aug’14
Infill started
Prod > 10kbd
FDP
Production optimisation
Idle string / well restoration
6 slot recovery & infill sidetracks
Improved operating efficiency
No Further Action
Natural decline
Current production approx 1,000 bopd and ~20,000 boepd from ~7000 in Dec 2012
Achieved thru:
Production optimisation
Idle string / well restoration
6 slot recovery & infill sidetracks
Improved operating efficiency
Dec’12
Feb’13
Sep’13
Apr 14
“Quintupling” Technical Potential

5. Multi-phased approach to maximize production and manage mature assets
Kinabalu
Production Operations
Early
Rejuvenation
Redevelopment
Integrated Operations 1 2 3 4
Improve the HSE Performance
Improve Field Reliability
Platform Debottlenecking Project
Well interventions
Field Development Update
Six infill wells
New Platform
New Facilities
Additional Infill Drilling and Workover Campaign
Secondary Oil Recovery
Synergies with PETRONAS Carigali in Sabah
The “Vision” included different Phases / Aspect for Rejuvenation of Kinabalu
This presentation focuses on the Early Rejuv
Well intervention & 6 infill wells
At capital cost <15% less than budget
Other key elements have been
Prod Ops
Improvement in overall OEE ~ 95% for 2014
Upgrades / major maintenance to key LP/HP/GTG machines
Commenced installation of PWT with conversion of sep to 3phases / 60kbd capacity
Redev
MR4 in progress for next stage of redev
1st stage is WH platform with 9 wells, 2nd stage is WI
Synergies with SBO (KNNAG/Samarang/Sumandak) on Ops/Dev/Subsurface
LP Separator
KN 114st

6. Flexible Approaches to Optimize and Accelerate Development & Rejuvenation Infill Schedule
Innovative Approach to Modelling / Modelling Technology
Subsurface Data Sharing
Data Gathering
Well Design Technology
As part of rejuv adopted a number of different approachs
To delivery the infill wells
Address key issues re the future redevelopment

7. L2 Static Reservoir Model
Rejuvenation Infill Wells
Notable Milestone Achievements through innovative approach on modelling
Innovative Modelling
Use Pre-Existing approved models*
1st three infill well approved through TRC
Additional 3 wells approved
program
1st well completed
Continuous drilling
Jan 2013
Feb 2013
Oct 2013
Nov 2013
Dec 2012
Aug 2014
* Pre-existing approved models used to accelerate Rejuvenation MR#2/3/4 process, prior to completion of updated models
L2 Static Reservoir Model
First three infill wells approved through TRC within 3 months of PSC handover (Feb 2013), 3 further wells approved. 5th & 6th wells accelerated into current rig programme
Very close cooperation with MPM / JV
Very integrated SS / Drilling team
Mixture of experience and new grad
Supplement by short term consultancy
Use of MPM Umbrella contract for additional consultancy support
Pre-existing approved models used to accelerate MR2/3/4 process, prior to completion of updated models
QC’ed existing models
Identifies early wells with good potential – robust reserves / economics
First well completed 25 Nov 2013, continuous drilling through to Sept 2014
Farmout to PCSB to meet joint requirements – offline abandonment
Modified drill schedule to drill 6 back to back
Early intervention / safety upgrades / offline abandonment

8. Kinabalu Development Studies
Comprehensive re-evaluation of 30+ reservoirs
Modelling Technology
A comprehensive re-evaluation of 30+ reservoirs
Infill well locations
Pressure maintenance
EOR evaluation
Reservoir management plan
Multiple Static Realizations
Key approach was to construct Statis & Dynamic models for all Tier 1 & 2 > 10 MMbbl STOIIP – 10
10 main models with close to 30 reservoirs
Iterative approach testing multiple static models
Used to address
Rejuv targets
IOR/EOR
Overall reservoir management
New static models for each group of reservoirs > 10 MMbbl STOIIP – 10 models constructed

9. Rejuvenation – Infill Well Targets
KN-114ST3
KN-106ST4
KN-110ST4
KN-116ST1
KN-109ST3
KN-117ST2
Well Type
Single
Selective
Deviated
Dual
Horizontal
Single Selective
Objective
Primary objective:
L2/3/4 reservoirs
K2 and J6/7/8 reservoirs
Oil in X3_1 reservoir.
Secondary objective
Appraisal of U and W reservoirs
L2 reservoirs and backup on the L3/4 reservoirs
K2 reservoirs
O5/6 reservoirs.
Secondary objective:
Tier 3 M6/7 virgin reservoirs TD
8,712 ft TVDss
11,000 ft MD
8,526 ft TVDss
11,788ft MD
10,330 ft TVDss
14,105 ft MD
8,850 ft TVDss
9,882 ft MD
7,967 ft TVDss
8,900 ft MD
10,360 ft TVDss
12,620ft MD
Status
Completed on L2, L3, L4
Completed on J6/7 and K2
Completed on X3 as horizontal
Completed on L2
Completed on K2
Completed M6/7 and O5/6
The assessment resulted in 6 infill well targets – 6 donors
Well differed in
Type / completion (single dual selective / horizontal / Virgin / depleted / areal location
Flexibility with DONORS owing to issues with abandonment
Unitised well between Brunei / Malaysia

10. Field Cross-section - Rejuvenation Wells
KN-117S2
KN-110S4
KN-114S3
KN-116S1
KN-106S4
KN-109S3
East Fault Block
Main Fault Block
Key targets
Covered key main fault block in deep and shallow
Development of virgin East X3
Provide value basis for input to redevelopment

11. Data sharing effort with PCSB’s adjacent fields improved reservoir potential assessment and infill targets
Data Sharing
X3 Reservoir, East Block
Cross PSC data sharing for improved reservoir description
Original available data
Data sharing
PCSM /KNNAG and ourselves share same real estate
CA put in place to allow open sharing of data both raw and interpreted
Close liaison owing to well trajectory
X3 examples
Limited by early appraisal data
Access to PCSB wells provided completely different insight and potential for X
Target horizontal well
Prize was as well produced 2700 bopd
Continue to work witth all parties for common beenfit
Realization of potential of 2,700 bopd from X3 reservoir (KN-110ST3)
Post data-sharing with KNNAG

12. Comprehensive Data Acquisition For Future Optimisation
Data Gathering
Comprehensive Data Acquisition For Future Optimisation
Cored 90ft
100% recovery
Cored 65ft
KN-114ST3
KN-106ST4
KN-110ST4
KN-116ST1
KN-109ST3
KN-117ST2
Full LWD
(GR / Res / Den / Neut) 
Reservoir
Pressures
(D Reservoir Only)
NMR
(MRIL / CMR)
(CMR Only)
Sonic Scanner
(Dipole)
(Dipole Only)
UBI
Conventional Core
Stages approach to data collection to target key data requirement
1st well 114 Sonic/UBI/inter sand MDT over all horizons both producing and non-producing
2nd well sand MDT
Later wells targetting acquisition in unpenetrated zones
Finally core in shallow as KN-2 J and deeper
Improved reservoir description
Extensive P measurement in 1st 2 wells
Collect NOW for better optimisation TOMORROW

13. Sand Mitigation Solutions
Well Design/Technology
Comprehensive sand study
Based on existing and newly acquired data from Kinabalu and KNNAG
Orientated perforation to maximise allowable drawdown and minimise risk of sand production
Perforated in vertical maximum stress orientation (10/350 degrees)
SAND STUDY
ORIENTATED PERFORATION
Adopted a similar approach of managing sand at surface
Comprehensive sand study completed based on existing and newly acquired data from Kinabalu and KNNAG
Implementation of orientated perforation in later infill wells to maximise allowable drawdown and minimise risk of sand production. Perforated in vertical maximum stress orientation (10/350 degrees
Continue to refine the models

14. Drivers to Success
Extensive Early data Acquisition
Multi-Azimuth 3D PSDM
NMR/CMR Acquisition
IOR/EOR
Evaluation
Integrated Assets
Integrated Subsurface Drilling & Wells
Static & Dynamic for 30+ Reservoirs
Data Sharing across PSCs
Core Acquisition
Orientated
Perforations
CT Conveyed Saturation Tool
Well Startup & Flow Control
MPM/ JV / TLM Alignment
Some of the many aspects that have allowed us achieve our TARGETS
Facilities Operational Improvement
Innovative Commercial Approach (PVB)

15. Thank you