Delivering commercial insight to the global energy industry Wood MackenzieEnergy Oil in Sudan and Potential Revenues to GOSS Stewart Williams Wood Mackenzie

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Presentation Overview Upstream Licence and Oil Reserve Positions Capital Investment and Production Outlook Basic Structure of EPSAs in Producing Areas Structure of Revenue Sharing and Potential Future Revenues to GOSS from Existing Contracts

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Sudan Licensing Overview Sudan has more licensed exploration acreage than any other African country (more than 1.1 million km 2 ) There are, however, relatively few blocks making the average block size massive at around 54,000 km 2 Other key producing countries have much lower average block sizes: Nigeria - 1,500 km 2 Angola - 3,500 km 2 Algeria – 4,500 km 2 Libya – 5,500 km 2 Egypt – 4,000 km 2 Despite having a drilling density much lower than other countries, exploration success has been very high and now Sudan ranks as the sixth largest producer in Africa

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Net Reserves and Acreage – A range of exploration players but reserves dominated by only a few companies Includes Total-Marathon-Kufpec/White Nile disputed blocks, Lundin, Express, Hi Tech Group, Cliveden, Khartoum State, Heglig, Gahtani, Ansan Wikfs, Dinder Group, All African Investment, Ascom

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Capital Investment Source: Wood Mackenzie Estimates. Excludes E & A costs.

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Oil Producing Areas Block 6 – Fula field plus 18 other fields CNPC (95%, operator), Sudapet (5%) Production (Al Fula Blend) is NOT subject to revenue sharing (production entirely from northern areas) Block 3/7 – Palogue plus 20 other fields Petrodar Operated CNPC (41%), Petronas (40%), Sinopec (6%), Al Thani (5%), Sudapet (8%) Production (Dar Blend) is subject to revenue sharing (100% of production is from southern areas) Blocks 1/2/4 Greater Nile Oil Project – Unity, Heglig plus 34 other fields GNPOC Operated CNPC (40%), Petronas (30%), ONGC (25%), Sudapet (5%) Production (Nile Blend) is subject to revenue sharing (mixture of production from the northern and southern areas) Block 5A – Thar Jath plus 2 other fields WNPOC Operated Petronas (68.88%), ONGC (24.13%), Sudapet (7%) Production (Nile Blend) is subject to revenue sharing (100% of production is from southern areas)

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Production Outlook and the Sources of Production

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Cost Recovery, to contractor Profit Oil/Gas Excess Cost Recovery Govt. Share of excess Contractor Profit Share Govt. Profit Share Gross Revenue 100% Pre-Jan 2005 Post-Jan 2005 Contractor Profit Share (Unchanged) EPSA Production Sharing Mechanism – Existing Developments Govt. share subject to wealth sharing between Govt. and GOSS Contractor Costs (Unchanged) Note: Contractor denotes non-Sudanese Government company e.g. CNPC, Petronas, ONGC etc

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Revenue sharing provisions between National Government and GOSS, post-Jan 2005 (1) Gross Govt. Share Volumes Refinery Exports Price Gross Revenues Costs *=- = = = Refining Revenues Export Revenues Excess Export Revenues Administration fees for refining and exports - - Transportation costs for exports and refining = Net Revenues Net Refining Revenues Net Export Revenues = = >$45/bbl <$45/bbl $/bbl * * * US$45 is the ORSA Reference price for 2006 and 2007 ORSA = Oil Revenue Stabilization Account ORSA

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Scale: = US$500 million/SDD100 billion Revenue sharing provisions between National Government and GOSS, post-Jan 2005 (2) Refining Revenues Export Revenues ORSA Allocated to Prod. States (2%) Excess Export Revenues Chart shows to scale the estimated revenues and costs in 2007 Northern Area Production Southern Area Production

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Forecast Revenue Splits for 2007 Source: Wood Mackenzie, based on its view on production, fiscal terms, oil price and understanding of the wealth-sharing provisions

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Potential Future Revenues From Blocks 1/2/4, 3/7 and 5A Source: Wood Mackenzie

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Overall ‘Split of the Barrel’ from Blocks 1/2/4, 3/7 and 5A Based of flat US$40/bbl ORSA Reference Price Wood Mackenzie Brent price assumption is US$62.00/bbl in 2007, US$55.00/bbl in 2008, US$49.00/bbl in 2009, US$43.08/bbl in 2010 remaining flat in real terms thereafter.

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Future GOSS Revenue Sensitivities Revenues to GOSS will be sensitive to a number of factors Oil Price There is a strong relationship between global oil prices and GOSS revenues If the Dar Blend could be sold at a higher price this would also directly benefit all parties in Sudan Oil Production Has a direct impact on revenues. A positive investment climate is required to sustain investment and production Transportation/Marketing Administration Costs These costs could potentially use up a significant part of the revenues. Reducing costs would benefit all parties.

Delivering commercial insight to the global energy industry Wood MackenzieEnergy Stewart Williams Senior Analyst, Africa Energy Research T: E: Contacts

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