Update on the Oil & Gas Sector

1. Update on the Oil & Gas Sector With Highlights on Logistics Services

2. Contents 1 Current Status of the Oil & Gas Sector 2 Key Projects 3 Commercial Opportunities for Logistics 4 Way Forward

3. 1.0 Current Status of the Sector

4. 1.1 Current Status of the Sector 2.3 Licenses/ Acreage • Govtshare is carried by UNOC

5. 1.2 Current Status of the Sector KEY PROJECTS Road to First Oil ~ US$ 15 - 20 Billion Investment Opportunity for National Content Development

6. 2.0 Key Projects Development and Production • Kingfisher Project • CNOOC - Kingfisher field. • Tullow – Future tie back from Kaiso Tonya (Mputa-Nzizi-Waraga) fields • Production plateau of ~40k bopd 5yr plateau • ~ 31 wells on 4 well pads in KF (20 OP, 11 WI) • ~ 20 wells on 3 well pads in KT • Kingfisher-Kabaale Feeder pipeline: 46km, 12” • RAP and ESIA studies are ongoing

7. 2.1 Key Projects Development and Production • Tilenga Project • Total: Jobi-Rii, Ngiri & Gunya fields • Tullow:Kigogole-Ngara, Nsoga, Ngege, Kasamene-Wahirindi. • Production plateau of ~190k bopd - 4yr plateau • 35 wellpads (MFNP-10 and South-25) • ~ 412 wells (190 OP/189 WI/33 Obs) • Buliisa–Kabaale Feeder pipeline: 95 km, 24” • RAP and ESIA Studies are ongoing Kingfisher CPF 3D Design 3D Design of Kingfisher Pad 2 3D Design of Kingfisher Pad 2

8. 2.2 Key Projects Uganda Refinery Project • ~US$ 3-4 billion project (includes 211km products pipeline). • GoU’s stake to be held through the Uganda Refinery Holding Company (URHC) - a subsidiary of the Uganda National Oil Company (UNOC). • 29 Sq.km of land acquired (5 sq. Km for refinery): 98.7% of PAPs compensated • AGRC- YAATRA Africa from Mauritius, Lionworks Group Limited also from Mauritius, Nuovo Pignone International SRL a subssdiary of General Electric Company located in Italy and SAIPEM SPA also from Italy. Uganda consumption approx. 32,000bbl/day; growing at a rate of 7% p.a. Feasibility of refining in Uganda confirmed Refinery of 60,000bbl/day planned to be developed located in Kabaale, Hoima to serve the local and regional market PFA with lead investor (AGRC) signed: Pre-FID activities (FEED, ESIA etc) to commence.

9. 2.3 Key Projects East Africa Crude Oil Pipeline (EACOP) Project Hoima (Uganda) - Tanga (Tanzania) 1445km long, 24-inch diameter with CAPEX US$ 3.5 billion Project partners; GoU, GoT, Upstream licensees Inter Governmental Agreement – GoU and GoT signed in May 2017 Foundation Stone laid in Tanga – Aug 2017 , Hoima and Mutukula – Nov 2017 Negotiation of Host Government Agreements ongoing GIE Engineering (USA) completed FEED in Dec 2017; Target FID; 2018 RSK Environment Limited (UK) & Eco & Partner Consult (UG) undertaking ESIA Districts: Hoima, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera RAP for construction camps (4 districts) has commenced.

10. 2.4 Key Projects Support Infrastructure • Master Plan for the Industrial Park developed by SMEC International (Australia); • 29 sq.km of land in Kabaale, Hoima to host: • A Refinery • Petroleum Products Storage, • An International Airport • A crude oil storage and transmission hub, • Logistics warehousing • Petro-chemical Industries, among others • Airport Development; SBI from Israel and Colas UK (SBC (U) Ltd. • UK Export Credit Financing – US$ 300m • Usable runway by Sept’ 2019.

11. 2.5 Key Projects Support Infrastructure: Roads • Planned network of 12 roads; 580 Kilometres at US $ 500 million • Financing by GoU, Exim Bank China and UK • Individual road lengths range from 23 kilometres to 110 Kilometres including a 3 kilometre bridge

12. 2.6 Key Projects Support Infrastructure: Roads

13. 2.7 Key Projects New Exploration Three Licenses under Exploration : Kanywataba area to Armour Energy Ltd Ngassa deep play to Oranto Petroleum Ltd Ngassa shallow play to Oranto Petroleum Ltd Planned Work Programmes (4 years) Reprocessing the existing seismic data, Acquiring new seismic data, Geological and geophysical studies Drilling of at least two exploration wells. Other Basins Monitor and participate in data acquisition over unlicensed areas in Albertine Graben, Kadam-Moroto, Lake Kyoga and Hoima Basins

14. 3.0 Project Metrics for logistics Support Project Metrics for the overall Albertine Basin Development (CNOOC, Total E&P and Tullow).

15. 3.1 Commercial Opportunities (Logistics) • Supply Chain Management Services • Freight forwarding, • customs, • warehousing, • transport of goods • Lifting Services • Vehicle Fleet Management • People Transportation, • Logistics in-country (Car, truck rentals and other vehicles) • Accommodation for Expatriates • Evacuation Services • In-country flight Services

16. 3.2 HSE Requirements for Logistics HSE Policy & Goal

17. 3.3 Transport & Lifting Services The Multi-Modal logistics Approach for the projects Road + Rail + Air + Marine The Main road routes that have also been identified are: • Mombasa- Malaba-Kampala to Hoima • Mombasa- Busia- Kampala to Hoima Alternative routes • Dares salaam – Mutukula- Masaka- Hoima • Tanga – Mutukula- Masaka- Hoima

18. 3.4 Transport & Lifting Services • Rail Transport • Over 95% of the goods in & out of Uganda pass through the port of Mombasa. • 90% of the cargo on the route travels by road and only 10% moves by rail. • Our plan is to use rail transport, given the nature of equipment expected to be moved, Into the country, however there is no assurance on RVRs lead time reliability • Rail could facilitate transport from Mombasa to the Container Depot in Mukono which was completed in 2015. From Mukono, equipment would be transshipped to the field by Road

19. 3.5 Transport & Lifting Services • Marine Transport Marine transport is not currently considered as a major option in-country, however it could be considered in the future on a contingency.

20. 3.6 Transport & Lifting Services • Aviation Services . Aviation • While air transport carries only a small proportion of passengers and cargo, it provides a major specialist service in high-speed carriage of time. • These services are contracted out to a credible service provider to move rotation staff, Medical evacuations and emergency light cargo deliveries. • The Aviation service provider is required to maintain the highest levels of safety and quality demanded of in Oil and Gas, and should also be open to routine Audits to mitigate risks.

21. 3.7 Transport & Lifting Services Lifting Services • Lifting operations may put individuals at risk of injury, as well as great expenses when they make a mistake. • Its therefore crucial to properly resource, plan as well as organize lifting operations to make sure they are performed in a safe manner. • Lifting operation includes structures or equipment that can’t be broken down into smaller pieces. Some of these items may include: Containers, Oil rig parts, generators among others. • What to Consider: Plan ahead, Strength and Stability, Positioning & Installations, Supervision.

22. 3.8Materials and Warehouse Management Each of the camps (Mbegu and Bugoma camps) are supported by an open materials yard and a warehousing Because our operations are executed in remote locations with undeveloped infrastructure and multiple cross border transfers. Its prudent to set up a storage facility at the site to mitigate on the risk of delays and costs of compromising availability.

23. 3.9 Freight & Forwarding Services These services are contracted out to a competent global forwarder that can deliver within the required lead-times. Major imports include drilling items like pipes, rig and accessories, Dangerous goods items (Classes 1 & 7), chemicals, camps etc. Customs Clearance is guided by the EACCMA 2004 Services May Include: • Customs clearance • Road transport from entry or exit Ports • Door to door sea & air freight forwarding • Consolidation services • Project & heavy lift shipment • Processing OOG transit permits • Processing temporary import bonds • Etc.

24. 3.10 Challenges • Major Logistical challenges • Lack of product knowledge on most of the imports for customs • Poor cargo handling Techniques • High Transportation costs, because of the distance and poor infrastructure • Cost of disposing off expired chemicals in the warehouse • Infrastructure challenges- the Kampala- Hoima road under construction with entire project taking Long, Malaba –Kampala not in a good state as well. The narrow and bumpy infield access road roads from Hoima to Kingfisher. • Poor communication and lack of honesty in updating client on project status

25. 3.11 Logistics HSE Requirements and JMP Journey Management Plan

26. 3.12 Challenge of Capacity for Multiple project Developments • The CPFs for Kingfisher & Tilenga, EACOP pipeline, refinery, feeder lines, Buloba facility, critical oil roads, Kabaale airport are all to be developed within the same period of time (in addition to other constructing works) • This will cause a strain on Ugandan local capacity, especially for the services like Logistics that are gazetted for Ugandan suppliers under NC-Regulation 10. Recommendations • It is important to be aware that the country has limited capacity and draw a contingent plan to mitigate this well in advance

27. 4. Way forward Register in the National Supplier Database to be eligible for award of O&G Contracts Upstream NC-R11(2) “a company shall not be contracted for petroleum activities unless it is in the National Supplier Database (NSD)” Log onto http://pau.go.ug/to register or update your information. Registration is now open Participate in the Supplier Development training programs organized by IOCs to sensitize stakeholders and potential suppliers Engage Government of Uganda on policy and regulatory framework with respect to your sector needs Leverage on Ugandan/international presence and network to further tap into potential opportunities especially for partnerships Invest time in study, knowledge seeking and internal capacity building in order to understand the industry better.

28. For God and my Country Thank You!