Sebuku PSC

Overview

• Contains 2 discoveries: Ruby gas field and the small Pangkat oil deposit
• Plan of development for Ruby approved in July 2008
• incorporates two bridge-linked platforms and initially four development wells
• 312km pipeline to transport gas to new onshore receiving terminal for processing
• Gas sold to the local Kaltim fertiliser plants
• Ruby currently contracted to supply 85mmcfpd
• Production capacity of 115mmcfpd, so scope to provide more gas

Participation

• Mubadala (70%*), INPEX (15%), Total (15%)

Exploration

• 11 wells drilled to date
• Latest activity: Mubadala returned to drilling on the PSC in March 2010 - drilled NW Ruby-1 wildcat to test satellite prospect - unsuccessful
• Further exploration planned
• In March 2013, Mubadala awarded exploration block for the acreage surrounding Sebuku PSC, the West Sebuku block; 3D scheduled in 2014 with view to identifying future exploration prospects

Reserves, production and sales

• Commercial WM: 215mmcfd (gross at 1/1/2014)
• Production began in 2013 at 14mmcfpd, ramping up to 75mmcfpd in 2014
• GSA signed in June 2011 for the supply of gas for 10 years to PT Pupuk Kaltim at c.80mmcfpd
• Ruby gas to be predominantly used for fertiliser plant operations of the Kaltim V plant; however, as field declines, gas from other PSCs will be required to fulfil GSA
• Price formula reflects local pricing and international ammonia and urea costs
• Estimated USD/mcf: 2013 (7.7), 2014 (7.1), 2015 (7.0), 2016 (6.7)

Development

• Currently produces from 4 wells, with additional drilling in future depending on reservoir performance
• Installation/construction of onshore facilities finished at end 2012, offshore platforms in June 2013
• First gas in October 2013

Fiscal and NPV

• First Tranche Petroleum at 20%
• Post-tax profit gas split is 65:35 in the government's favour; 80:20 for oil
• Corporate tax of 40%
• DMO applied at 6.7% after 60-month holiday, reimbursed at 15% of export price