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Tullow: Investing in Uganda

Tullow: Investing in Uganda. Creating stakeholder value from global options. Ghana: Jubilee discovery & fast track development Uganda: commercialisation, pre-emption & farmdown Growing, high impact exploration portfolio. Consistent and repeatable strategy Sustainable long term growth

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Tullow: Investing in Uganda

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  1. Tullow: Investing in Uganda Uganda Investment Forum

  2. Creating stakeholder value from global options • Ghana: Jubilee discovery& fast track development • Uganda: commercialisation, pre-emption & farmdown • Growing, high impact exploration portfolio Consistent and repeatable strategy • Sustainable long term growth • Balance exploration, major projects & funding • Safety, environment, stakeholders & people • $2.75bn debt facilities • $2.1bn equity placings • Uganda transactions • Jubilee Phase 1 first oil Nov/Dec 2010 Underpinned by financial strategy • Strong, well funded balance sheet to enable growth • Debt and equity funding • Portfolio management • Significant future operational cash flow Uganda Investment Forum

  3. Sierra Leone 3,600 sqkm 3D PSDM Guyana 1,889 sqkm 3D PSDM Seismic Drilling Acquisition Offshore Processing Onshore Pakistan – 1 well • Shekhan-1 48 km of 2D PSDM Madagascar 720 km 2D PSTM French Guiana 94 of 2,494 sqkm 3D 171 km 2D 2,494 sqkm 3D PSDM 171 km 2D PSDM 82% global exploration success rate in 1H 2010 Netherlands Gabon – 2 wells 2,424 sqkm 3D PSDM • OMOC-N-1 • Noix de Coco-1 1,512 sqkm 3D PSDM 678 km 2D PSDM Uganda– 9 wells Côte d’Ivoire • Kasamene-2 • Kasamene-3 • Kasamene-3A • Nizizi-3 • Nsoga-5 • Ngiri-2 • Mpyo-1 • Kigogole-2 • Kigogole-5 2,307 sqkm 3D 2,307 sqkm 3D PSDM 124 km 2D AWD 97 of 145 km 2D Low frequency passive project 221 km 2D PSTM 50 sqkm 3D PSTM Ghana – 4 wells • Mahogany-5 • Tweneboa-2 • Dahoma-1 • Owo-1 Tanzania -1 well 1600 sqkm 3D PSDM 600 sqkm 3D PSTM • Likonde-1 87% success rate in 2009 77% success rate in 2008 973 km 2D PSTM Uganda Investment Forum

  4. Tullow invests in 26 countries: 18 in Africa, 3 in East Africa Uganda Investment Forum

  5. History of oil exploration in Uganda • Basin potential identified through regional geology • One previous well in 1938 intersected oil shows, but not attractive to oil companies • Area licensed to Petrofina in 1990s but no activity Lake Albert Eastern arm In late 1990s, Tullow Oil* reignited the Ugandan Oil industry and began a focused exploration campaign along the shores of Lake Albert Western arm * as Energy Africa Uganda Investment Forum

  6. Ugandan Resources (P50) Discovered Resources >2.5bn boe Prospective Resources Uganda - 1 billion barrels of oil discovered to date Milestone volume achieved • 1 Bbo discovered (P50); over 1.5 Bbo yet to find (P50) • 35 out of 36 wells successful (9 drilled in 2010) • Accelerated basin-wide E&A commenced High impact exploration success continues • Block 1 exploration re-commenced in August • Mpyo-1 well is a material new oil discovery • Jobi extensions to be drilled over coming months Appraisal wells ahead of expectations • Three Kasamene wells confirm excellent quality reservoir • Nzizi appraisal proves viability for gas-to-power • Ngiri-2 proves up resources over 100 million barrels • Kigogole-Nsoga - appraisal has proved up a significant field Uganda Investment Forum

  7. Uganda prepares to join World’s Oil Producers Uganda Global oil production ~ 82 million bbls/day Uganda could be among the top 50 producers in the world and top 10 producers in Africa Uganda Investment Forum

  8. Uganda – Block 2 Development (Phase 1) • Extended Well Tests • On track for delivery by end 2010 • EWT equipment is in country, construction in 2H 2010 • Crude sales agreements to local industry progressing • EWT data will guide Kasamene and future developments Nzizi Gas Field development (IPP) • 50 MW Power Plant planned for Hoima Region • Nzizi-3 well confirmed expected gas volumes • FEED studies nearing completion • First gas and power remains on-track for late 2011 Kasamene Field Development • Successful Kasamene-2 & 3 appraisal wells • Results support development concept and volumes • FEED studies optimised to minimise environmental footprint • First oil end 2011 • Development focused on local and regional needs Kasamene Central Processing Facility Kasamene Gravel road upgrade to Hoima for trucking Nzizi Integrated Power Project (IPP) -Nzizi Road Uganda Investment Forum

  9. Significant progress commercialising Ugandan resources • E&A activity delivering material resources (9 successful wells YTD) • Tullow: CNOOC: Total (1/3:1/3:1/3) partnership agreed with GoU • Heritage Oil assets in Blocks 1&3A acquired • Finalisation of acquisition and farm-down awaiting Heritage Oil CGT dispute resolution • Nzizi/Kasamene developments and basin-wide development plan well advanced Block 1/2/3A partnership will now target Accelerated exploration and appraisal programme Ongoing Commitment to offshore drilling infrastructure 2H 2010 Deliver JV basin-wide development plan 1H 2011 First commercial gas production – Nzizi Field Q42011 First commercial oil production – Kasamene Field Q42011 First locally refined oil products 2014 Greater than 200,000 bopd and export pipeline 2014/2015 Uganda Investment Forum

  10. Development of Local Skills & Employment Opportunities • Currently 800 jobs in the field and 100 in Kampala • It is estimated that the industry will create 10,000 jobs • Ugandan entrepreneurs must step up to the challenge of establishing oilfield service companies • Training must be made available (through public and private ventures) so that all Ugandans can participate • White collar workers • Technical: Qualified engineers, geologists etc • Business: Lawyers, accountants, managers etc • Artisans (Technicians) • Pipefitters, welders, masons, carpenters • Drillers, Operators • Labourers • Rig workers, security guards, helpers Development of Local Content capabilities, appropriate for all levels of the industry, is key to the success of the industry Uganda Investment Forum

  11. Social Enterprise Approach and Strategy • Focus on long-term integrated and sustainable social and community investments • Oil and gas resources act as a catalyst for socio-economic opportunities and economic development – Creating Shared Prosperity • Focus on creating a culture which encourages: • Enterprise Development • strong links to developing local content in supply chain • Access to good health • Education • including building capacity for the oil and gas industry • Environment • Relevant to business strategy and makes a difference to real local needs Uganda Investment Forum

  12. Tullow will continue to invest in Uganda • Uganda is at the dawn of its oil era • Exploration activity has been exceptionally successful • Tullow has invested >$2.5 Billion • Tullow/Total/CNOOC about to start $10 Billion new investment • Government revenues from oil production will exceed $50 Billion • Creating major opportunities for new and existing businesses in Uganda • Building a highly effective organisation to deliver the business • Encouraging & supporting regulatory capacity for a new industry • Developing a business and in-country infrastructure for the long-term • Development planning is well underway, but there is a lot still to do • Successful and collaborative partnerships will be a key success factor • We have a strong platform for future growth in Uganda Uganda Investment Forum

  13. Conclusion We are here because it makes sense to be here there's a compelling business case we intend to stay and we intend to grow We are optimistic that Uganda will build its capacity to join the World’s Oil Producers Uganda Investment Forum

  14. Tullow Oil plc 3rd Floor, Building 11Chiswick Park, 566 Chiswick High RoadLondon, W4 5YS Tel: +44 20 8996 1000 Fax: +44 20 8994 5332 Investor Relations Contact Chris Perry: chris.perry@tullowoil.com Uganda Investment Forum

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