EOPS Project Media Briefing

Early Oil Pilot Scheme (EOPS) BriefingMedia Stakeholders

30th May 2018

Slide 1

EOPS Project Media Briefing

Briefing Objectives

1. To provide a brief history of the Petroleum sector in Kenya.

2. To provide information associated with the Early Oil Pilot Scheme (EOPS), and in particular:

a. Why the Government of Kenya and Kenya Joint Venture Partners (KJV) are pursuing EOPS; and

b. What comprises the EOPS project.

3. To provide media stakeholders with an opportunity to ask questions on the project.

Slide 2

EOPS Project Media Briefing

Kenya in a Regional Context

Country Hydrocarbon Resources (billion boe)

Kenya 0.56

Uganda 1.7

Mozambique 10.2

South Sudan 1.5 – 2

Tanzania 2.5

Ethiopia Exploration

DRC Exploration

It is predicted that up to US$100bn could be invested in the region’s oil and gas sector in

the next 15 years

Kenya is well placed to lead the development of oil in East Africa

East Africa is fast becoming a key player in the global oil and gas scene:

Slide 3

EOPS Project Media Briefing

Lamu Basin Area: 261,000 km2

Mandera Basin Area: 51,442 km2

Anza BasinArea: 76,108 km2

Tertiary Rift Basin Area: 117,400 km2

51.59%

10.17%

15.04%

23.20%

Slide 4

Kenya’s Basinal Area 506,000 km2

1

2

3

4

EOPS Project Media Briefing

Major Kenya Basins

Slide 5

EOPS Project Media Briefing

Brief Exploration History

Slide 6

EOPS Project Media Briefing

Results of Drilled Hydrocarbon Wells

Hol-1

Juba-1

Cherferso-1

Das Uen-1

Lach Bissigh-1

Lach Dera-1

Obbe-1

Kucha-1

Mararani-1(1962)

Dodori-1 (1964)

Pomboo-1Pate-1 (1971)

Pandagua-1(1960)

Walu-1 (1960)

Hagarso-1(1975)

Garissa-1 (1968)

Kencan-1(1986)

Wal Merer-1(1967)

Meri-1(1961)

Bahati-1(1976)

Anza-1(1976)

Endela-1(1989)

Hothori-1(1989)

Sala-1(2014)Badada-1(2015)

Elgal-1(1987)

Elgal-2(1987)

Ndovu-1 (1988)

Duma-1(1989)

Kaisut-1(1989)

Etuko-1 (2013)

Ewoi-1 (2014)

Ekunyuku-1 (2014)

Etom-1 (2014)

Engomo-1 &1A (2015)

Eliye Springs-1 (1992)

Sirius-1(1988)

Chalbi-1(1989)

Bellatrix-1 (1988)

Walu-2 (1963)

Kofia-1 (1985)

Mbawa-1(2012)

Simba-1 (1978)

Ria Kalui-1 (1962)

Sunbird-1(2014)

Maridadi-1B(1982)

Kipini-1(1971)

Kubwa-1 ( )2013

(2007)

KAKUMA

LOKICHOGGIO LOKITAUNG

LODWAR

MARSABIT

EL WAK

WAJIR

KAPENGURIA

MALINDITANZANIA

UG

AN

DA

SOUTH SUDAN

ETHIOPIA

SO

MA

LIA

Well with gas shows

Well with oil shows

Well with both gas & oil shows

Dry well

Oil Seep

Oil discovery well

Gas discovery well

Both oil & gas discovery wel

MANDERA

MOYALE

NAIROBI

EMBU

NYERINAKURU

KISUMU

KAKAMEGA

LEGEND

Wel l wi th gas shows

Wel l wi th o i l shows

Wel l wi th both gas & o i l shows

Dry well (Kenya) & (Somalia)

Oi l S eep

Oi l d iscovery wel l

Gas d iscovery wel l

B asem ent rock outcrops

B oth o i l & gas d iscovery wel l

LEGEND

0 40 80 160 240 320Kilometres

Agete-1 (2013)Twiga-1 (2012)

Ekales-1 (2013)

Ngamia-1 (2012)

Loperot-1 (1992)

Amosing-1 (2013)

Prepared and Printed by Ministry of Energy & Petroleum, Kenya Revised June 2015; after Edition 5 of Petroleum Exploration Block Map of Kenya; that was compiled by Survey of Kenya, Feb 2015

2B

Kiboko-1(2013)

RESULTS OF DRILLED PETROLEUM EXPLORATION WELLS

IN VARIOUS BASINS & EXPLORATION BLOCKS OF KENYA

TurkanaDiscovery

Anza Discovery

MbawaDiscovery

Sunbird Discovery

EOPS Project Media Briefing Slide 8

Project Oil Kenya Video

EOPS Project Media Briefing

Kenya Joint-Venture (KJV) Partners in Blocks 10BB & 13T

Slide 9

• Global independent oil and gas company

• Publicly listed on the London,

Irish and Ghana Stock Exchanges

• The Group has interests in over 100 exploration and production licences in 18 countries globally - with 56 licences in 10 countries in Africa

• Canadian oil and gas company with assets in Kenya and Ethiopia

• East African holdings cover total gross land package in excess of 250,000 square kilometres

• Publicly listed on the Toronto and Stockholm stock exchanges

• Total, an international oil and gas company headquartered in France is the world’s 4th largest oil and gas company with operated production of 2.5 million barrels of oil equivalent per day.

• Operations in more than 130

countries

GOVERNMENT OF KENYA

GoK is the Project sponsor, while Tullow (on behalf of KJV) is project operator

EOPS Project Media Briefing

Oil & Gas Life Cycle

Decommissioning

5 – 10 years 5 – 10 years 20 – 50 years 5 years

Exploration & Appraisal Development & ConstructionCommissioning & Production

End of

Project

Oi l

Production

Marine

Terminal

Crude Oi l

Pipeline

Centra l

Processing Facility

Exploration

Dri l ling/Testing

Seismic

Activi ty

Early Oi l Pi lot Scheme

Slide 10

EOPS Project Media Briefing

EARLY OIL PILOT SCHEME

EOPS Project Media Briefing Slide 12

• Pilot production phase of~2,000 bpd from five existingwells in the Amosing and Ngamia fields

• A single Early Production Facility (EPF) at Amosing-1 well pad

• Crude trucked from Amosingto Mombasa using insulated tanktainers

• Transport by road to Mombasa: 1,107 km

• Oil transferred into large storage tanks at refinery for onward export to market

• Commencing 2018 - expected operating period ~2 years

• Production into local storage tanks at Ngamia already underway

INSTALLED WELL HEAD & PCP

CRUDE TRANSPORTED VIA TRUCK USING TANKTAINERS

STORAGE TANKS AND PIPING AT KPRL MOMBASA

EOPS Route: The project has already been a catalyst for significant road upgrades that will support future development

Early Oil Pilot Scheme: A First for Kenya

EOPS Project Media Briefing Slide 13

EOPS Strategic Rationale

WELLPAD WITH MOBILE EPF & EXISTING WELLS

STORAGE AND LOADING

UPSTREAM

A1 ROAD

MOMBASA

UNLOADING

EOPS CONCEPT

WELLPADS WITH DEGASSING UNITS

An important step towards Development, EOPS will help by:

• Establishing logistical infrastructure (e.g. roads) and otherkey arrangements

• Providing important technical data on the wellperformance over time

• Allowing National and County Governments to gainenabling technical experience and capability as KJVtransitions from Exploration and Appraisal intoDevelopment and Production

• Creating scalable employment and business opportunitiesthat will assist in building capability

• Establishing Kenya as a crude oil exporter and providingvaluable information on the international market forKenyan crude

EOPS Project Media Briefing Slide 14

• A key enabler for Full Field Development

• Enhances the credibility of oil production in Kenya (locally, nationally and internationally)

• Creates scalable local employment and business opportunities (small initially but core to full field development)

• Establishing enabling commercial, infrastructure and logistical arrangements that will facilitate future full field development

• Providing important reservoir information that will assist planning for the future full field development

• Establish an international market place for Kenya’s crude oil at a relatively low cost with a scope for more preferential price discounts in the future.

Important NB: This is not a replacement of FFD

KEY MESSAGES

EOPS Project Media Briefing

INTERACTIVE SESSION

EOPS Project Media Briefing

Catering Security Warehousing

Freight forwarding and logistics Civil works

EOPS: Business/Job Opportunities

Slide 16

EOPS Project Media Briefing

EOPS: Vocational Training Opportunities

Infrastructure

Skills to grow the capacity of local communities and Kenyans to participate in the oil & gas industry

Slide 17

EOPS Project Media Briefing

EOPS: KeNHA Accelerating FFD Infrastructure Delivery

Infrastructure

Kainuk bridge

Example of typical double seal finish that KeNHA will be implementing on the A1 highway (including the Kainuk bridge)

A section of the A1 highway

Slide 18

EOPS Project Media Briefing

EOPS: Kenya Power Accelerating FFD Infrastructure Delivery

Infrastructure

Kenya Power is currently undertaking several projects that will increase connectivity to more households in Turkana.

Slide 19