1. Wheatstone LNG Project Ahmed Khalaf KUFPEC

2. Wheatstone Project Location
Julimar – Brunello Gas Fields Upstream
Woodside 65% and KUFPEC 35%
Net Reserves – 146 MMboe
Wheatstone – Iago Gas Fields Upstream (UUOA)
Chevron 80.17%, KUFPEC 8%, TEPCO 10% and Kyushu 1.83%
Net Reserves – 139 MMboe
Wheatstone – LNG Project Downstream Platform and LNG Plant
Chevron 64.14%, Woodside 13%, KUFPEC 13.4%, TEPCO 8%, and Kyushu 1.46%

3. Development & Status Julimar
Phase 1 project progress is currently at 99%
5 wells have been drilled and will be ready for production in Oct 2017 (first cargo) - 15 more by Phase 4 in 2033
Wheatstone
Project progress is currently 94.1% vs 95.1% for combined upstream and downstream
9 wells have been drilled in the Iago field (14 wells remaining to be drilled by 2040)

4. Major Milestones Export loading arms installed on jetty
All LNG Modules completed and loaded to site
Condensate tanks complete

5. Significance of the WST Project
Started with an exploration block and discovered two fields totaling 146 MMboe in total reserves - Total expenditure in the exploration phase was approx. US$ 300MM
The project took 7 years for FID, and 6 years for development – Expected production Oct 2017 – approved development budget of ~US$ 7B
Look forward NPV(9)= US$ 3,173MM, IRR= %
Net Cash Flow over life of project ~US$ 9B

6. Summary
The Julimar/Wheatstone-Iago project is currently the biggest and most critical project for KUFPEC
It contains the single largest reserve addition to KUFPEC’s books, with a proven addition of 285 mmboe, and will contribute 37,000 BOEPD production by 2019
Being the first LNG project in any K-Company, and working with a major global Operators, Wheatstone will provide valuable information and experience to our employees that can be transferred to the Kuwait oil sector for use in future projects.
This project also reflects good practice as a significant investment in a key region with low country risk where KUFPEC is already established and active
The Wheatstone project is a perfect example of the core model work within KUFPEC – starting with purchasing a block, studying the seismic, drilling exploration wells, discovery of hydrocarbons… continuing with development and production!

7. Thank You

8. Backup Slides

9. Knowledge Monetary KPC Project Cost Management
Severe Weather Management
Complex Project Management
LNG Technology
Knowledge
Monetary
Leverage Opportunity to Bridge Worldwide Natural Gas Demand : CAGR 7-8%
Handling Operational
Complexity
Assured Cash Flow Through Secured Long Term Sales Contracts
Opportunity to Bridge Kuwait’s Gas Demand Gap
Support Value
Primary Value
Significant Reserves Base and Long Term Plateau Production

10. Wheatstone Iago/Julimar – Upstream
KUFPEC purchased 35% of block WA-356-P in 2004, partnering with operator Woodside
The Julimar/Brunello fields were discovered in 2007
146 MMboe in total reserves
JV negotiated with a nearby block operator (Chevron) in order to utilize the infrastructure and downstream facilities
Full project development cost, net to KUFPEC was $3.6B
Wheatstone-Iago
In 2004 Chevron & Shell discovered the Wheatstone and Iago and gas fields, with reserves of 9 TcF (1.55 Bboe) – Net 139 Mmboe to KUFPEC.
They proceeded to develop the field and make plans for onshore tie in to an LNG facility (Chevron 65% - Operator)
In 2014 KUFPEC acquired Shell’s 8% interest in the Wheatstone-Iago field
The approved development budget for the project was $3.5B

11. Wheatstone LNG Project – Downstream
The purchase of the WST-Iago field included a 6.4% share of the Wheatstone LNG Development project
The WST acquisition also committed KUFPEC’s Julimar field to a 7% share of the downstream operations
This gave KUFPEC a final share of 13.4% from the downstream LNG project

14. What is LNG? Why invest in LNG?
LNG is natural gas that has been converted to liquid form for ease of storage or transport
The natural gas is cooled to –162° C in order to liquefy it and shrink its volume
Why invest in LNG?
Global Gas demand is on the rise
Significant reserves
World Class Operators & Partners
High expected Return on Investments

15. Project Overview
Wheatstone & Iago
Gas Fields
UUOA (Iago) Project
Wheatstone Platform and Trunkline Joint Venture
WPT JOA
Mutli-User Facilities JV – MF JOA
Shared Facilities JV – SF JOA
LNG Train 1 and 2 JV – LNG Train JOA
Domestic Gas JV – DG JOA
Downstream Project/Joint Scope
Wheatstone LNG Project Joint Ventures
Julimar / Brunello
Julimar / Brunello Project
Due to the size and complexity of the downstream LNG project, the operator had to separate the workflows under five different JOAs in order to streamline the process and ensure continuous progress