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Tullow in AFRICA

NOT AN OFFICIAL UNCTAD RECORD. Tullow in AFRICA. Building a balanced portfolio of Exploration and Production Assets. 2004 - A Landmark Year for 18 year old Tullow Oil. Over $1 billion on acquisitions Energy Africa, Schooner and Ketch (North Sea Gas Fields) New organisation structure

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Tullow in AFRICA

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  1. NOT AN OFFICIAL UNCTAD RECORD Tullow in AFRICA Building a balanced portfolio of Exploration and Production Assets

  2. 2004 - A Landmark Year for 18 year old Tullow Oil • Over $1 billion on acquisitions • Energy Africa, Schooner and Ketch (North Sea Gas Fields) • New organisation structure • COO: Production and Development, five business units • Exploration Director, enhanced exploration focus • EHS/CSR policies aligned across enlarged group • Exploration success • Discoveries in Bangladesh • “Snuggle” exploration in Gabon, Equatorial Guinea and the UK • Quality assets • Current working interest production over 56,000 boepd • Quality reserves • 326 mmboe total reserves, 173 mmboe commercial reserves • Focused growth strategy • Africa, NW Europe, South Asia 1

  3. The 2005 Tullow “footprint” • 3 core areas (operator in all 3) • Africa • NW Europe • South Asia • 16 Countries, 12 in Africa • 90 Licences • 25 producing fields • Strategic focus on: • Oil in West Africa • Gas in the UK SNS • Growth in South Asia • Major offices London (HQ), Dublin, Cape Town. Many regional offices. • C. 200 employees • Market capitalisation c. £1.1 bn NW Europe South Asia Africa 2

  4. Ongoing active portfolio management • Focus on those assets where we can add value through: • Material influence • Upside potential • Operational innovation • Strategic objectives: • Build strong positions in core areas • Consolidate niche positions in developing regions • Exit where we can’t achieve material influence • Continually reviewing our portfolio versus long term growth: • Since year end disposed of Alba/Caledonia and offshore Congo • Headline consideration of US$184 m 3

  5. SOME NUMBERS

  6. Balanced growth is the key Revenue Balance Production Balance Africa 47% Africa 47% 2004: US$430 million 2004: 40,600 boepd Product Balance Reserves Balance 2004: US$430 million 2004: 326 million mmboe Building a balanced portfolio of Exploration and Production Assets 5

  7. 2005 Development and Exploration Spending Total Exploration Development Africa Africa Africa 11

  8. OPERATIONS REVIEW

  9. Recent Highlights 2004 was an exceptional year for Tullow’s production and development businesses • Acquisitions: Energy Africa, Schooner & Ketch, Orwell, Horne & Wren • Integration: Reorganisation to Business Unit structure Africa • Production increased to over 30,000 bopd • Reserves: replacement 250% • Developments: M’Boundi expansion, West Espoir and Okume sanction • Kudu: JDA signed July; conceptual engineering completed UK • Opex: Bacton/Hewett 25% reduction, Thames export up >100% • Development: CMSIII completed, Horne & Wren and Munro underway • Operatorship: positioned to increase to 60% of production South Asia • Bangladesh: Bangora and Lalmai gas field discoveries • Pakistan: strategic review and progress on Chachar field development 13

  10. Tullow’s Africa Strategy Africa • Capitalise on 18 years African experience both onshore and offshore • Pursue opportunities that arise as majors exit non-material assets • Target near-shore operated development projects • Extract additional value from existing assets with operational innovation • “Snuggle” exploration balanced with higher impact/risk prospects • Selective acquisitions within our core areas • Active portfolio management 15

  11. Tullow in Gabon Production • Now over 19,000 bopd Drilling • Niungo – up to 8 further infill wells • Tchatamba – further sidetrack • Etame – further development wells • Up to 3 operated exploration wells Developments • Avouma development planned • Tchatamba sour oil study ….leverage UK SNS experience and operating capability…. 18

  12. Tullow in Congo M’Boundi Development • Production now >35,000 bopd • Up to 22 further development wells • Pilot water and gas injection projects • Facilities expansion to 60,000 bopd Field Areas and Reserves Area 1 • Drilled and mapped on 3D seismic • 20 mmbo 2P reserves • Additional 9 mmbo 3P reserves Area 2 • Undrilled, new 3D seismic acquired • Potential to add further 27 mmbo 19

  13. Tullow in Côte d’Ivoire Production • East Espoir increase to >25,000 bopd Drilling • 4 East Espoir infill wells underway • West Espoir drilling starts Q4 05 West Espoir Development • Production 10,500bopd • First oil Q2 06 • Total Capex of $190m • Modifications to FPSO underway • Wellhead tower installation Q4 05 Acajou Development • Review development options CHANGE PHOTO 20

  14. Tullow in Equatorial Guinea Production • Ceiba production 40,000 bopd Drilling • Up to 8 infill wells on Ceiba Okume Development • Production 60,000bopd • First oil end 06 • Total capex of $1.1 bn • 2 deepwater TLP’s, design underway • Shallow water Central Processing Facility with 3 satellite platforms • 2006 installation and drilling CHANGE PHOTO Design of the Okume Development 21

  15. Tullow in Namibia (Kudu Project) Phase 1: Gas to power • 800 MW power plant with c. 110 mmscfd gas supply • Net Reserves – 780bcf • First Gas - 2009 • Complete FEED studies, offshore pipeline and well surveys • Finalise GSA/PPA discussions • Finalise partnering and funding Phase 2 • Upside net reserves of 4tcf • Complete planning for 2006 appraisal drilling • Development concepts under review • LNG, GTP Phase 2, GTL CHANGE PHOTO 22

  16. Exploration Review

  17. Africa Exploration 2004 Review • Energy Africa / Tullow integration • 24 licences in 11 countries • Strong combined synergies • Strategic focus on West Africa 2005 Outlook Gabon • 5 major licences • 3 back-ins • 4 wells to be drilled Ivorian-Ghanaian Basin • Begin work on CI-107/108 • Target new venture Mauritania • Further Block 2 well in 06 • 2 prospects in Block 1, 150 mmbbl+ each • Block 1 – 1 well in 05 Uganda • 2x 500mmbl Albertine Basin prospects 18 years of experience in the region 27

  18. Africa: Exploration Drilling Programme 41

  19. Our unique characteristics • Entrepreneurial spirit • Creative and flexible approach to acquisitions and development • African heritage and continued intense African focus • First E&P project in Senegal (15 yrs), today in 12 African countries • Strong relationships • Work hard at being good employer, partner and operator • Development focus • Swift response to any development opportunities as they arise • Diverse and quality portfolio • Mix of oil and gas in mature and developing markets • Active asset management • Continually review portfolio in relation to our long term objectives • Material influence • Target material equity participation and aligned JV partnerships • Financial capacity • Conservative accounting, strong cash flow and healthy balance sheet 30

  20. Who owns Tullow Oil?

  21. Shareholder Analysis African 18% African 18% Market Capitalisation ≈ US$ 2 bn 31

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