20th 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

Kuwait Petroleum Corporation – KPC Kuwait Petroleum Corporation – KPC A fully integrated operation from well-head to petrol pump Upstream Midstream/ services Downstream Domestic International Kuwait Oil Company –Domestic upstream Kuwait Gulf Oil Company –Focus on the Divided zone, offshore area between Kuwait and Saudi Arabia Oil Development Company –Award and manage the OSC (Operational Service Contracts) with the IOCs, specifically for the Northern Kuwait fields Oil Sector Services Company –Construction and security services for KPC and its subsidiaries Kuwait National Petroleum Company –Domestic downstream Kuwait Aviation Fuelling Company –Aviation fuel facilities servicing over 1,500 aircraft per month with a 30 million litre storage capacity Petrochemical Industries Company –Fertilizers and petrochemicals Kuwait Foreign Petroleum Exploration Co. (KUFPEC) –International upstream 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) KPC’s activities are carried out by 10 subsidiaries with distinct mandates. KUFPEC is the International Upstream subsidiary of KPC

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

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

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 2030 KUFPEC’s Strategy Direction

KUFPEC Production (kboe/d)

ExplorationGround-floor with partner, preferably not Deep Water Asset acquisitionsMain focus Corporate Acquisitions Looking into Corporate deals since market getting better.(seller/buyer expectation gap narrowed) Oil vs. GasNo preference. Portfolio ~ 80% gas Geographic LocationPreferably around KUFPEC producing assets, but open to new country entries (Ex: Vietnam 2009) Pro / re-activeStrong preference for pro-active opportunities Operatorship5% of production by 2015 (6 kboe/d) UnconventionalTo be reviewed. (Ex: Shale Gas) PartnersTechnically competent IOCs / NOCs Technology TransferHeavy Oil, gas, HTHP Strategic Opportunity Choices

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 ManpowerMore high quality technical staff required

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