1

O I L S E A R C H L I M I T E D

Helping to create a

sustainable future for

PNG

2

2011 Annual Meeting Agenda

Overview

2010 Financial Results

PNG LNG Project

Expansion Activities

Operations Review

Sustainability

Summary

3

Overview

4

Sustained Top Quartile Performance

Oil Search has delivered an annualised total shareholder return (capital growth & dividends) of 15% over last five years

Performance driven by delivery of FID on PNG LNG, strong underlying oil business, tight cost control and good oil prices

Recent Strategic Review highlighted potential to continue to generate top quartile growth from existing asset base

Over 40 initiatives now in place and being implemented over next three years

SantosASX 100

Woodside

WTI oil

Oil Search

Share price (rebased to OSH)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09 Jul 09 Jan 10 Jul 10 Jan 11

5

OSH Strategies to Create Value

Optimise current oil and gas production:Through improved efficiencies and pursuit of near field opportunities

Maximise value of PNG LNG Project (T1 & T2):By utilising in-country knowledge to assist Operator

Develop LNG and other gas expansion opportunities: Build gas resources for both PNG LNG expansion and standalone LNG project/s

Measured programme of other growth options:Optimise exploration portfolio

Ensure Oil Search’s Sustainability: Operate business in transparent and sustainable manner to ensure long term operating stability and ‘social licence to operate’

6

Safety is our Top Priority

Total Recordable Injury Frequency Rate (TRIFR) of 1.96 in 2010. Good relative to peers but room for improvement

TR

I /

1,0

00

,00

0 H

ou

rs

0

2

4

6

8

10

12

14

Oil Search

Australian Companies (APPEA)

InternationalCompanies

(OGP) 3.9 3.1 2.9 2.72.1

4.0

3.6

4.9

5.76.0

1.75

1998 1999 2000 2001 2002 2003 2004 2005 20072006 2008 2009 2010

8.5

10.69.8 10.7

5.8

1.7

4.7

2.4 2.31 2.051.16

2.04 1.96

5.2

12.7

9.1 9.37.8

7.0

7.3

9.4

8.2

6.36.8

6.0

7

World Class Safety Performance

TRIFR(per Million Hours Worked (All Reported Data))

Fletcher Building

BramblesFoster’s

Macarthur CoalOZ MineralsDowner EDI

United GroupOrigin

Incitec PivotBoart LongyearContact Energy

James HardieHastie Group

CSR

StocklandTransfieldNewcrest

AWEBHP Billiton

Lahir GoldAmcorSantos

OricaWoodside

Oil Search

Fletcher Building

Brambles

Foster’s

Macarthur CoalOZ Minerals

Downer EDI

United Group

Origin

Incitec Pivot

Boart Longyear

Contact Energy

James Hardie

Hastie Group

CSR

Stockland

Transfield

Newcrest

AWE

BHP Billiton

Amcor

SantosOrica

Woodside

Oil Search

0 5 10 15 20 25 300 5 10 15 20 25 30

2009 2010

Source: Company data, Citi Investment Research and Analysis. Note: TRIFR – Total Recordable Injury Frequency Rate per 1 million hoursworked; * Lihir Gold taken over by Newcrest. (September 2010); ** Citi estimate for Macarthur Coal’s Group TRIFR based on operations’weighted average coal production.

FY10YTD data

8

2010 Financial Results

9

2010 Financial Performance

(US$’m)RevenueCosts (net)EBITDAXD, D & AExploration costs expensedInterest income/expense, impairments, otherPre-tax ProfitTaxNPATSignificant itemsCore Profit

583.6(111.9)

471.7(49.9)

(131.2)(13.4)

277.2(91.6)185.6(41.5)144.1

20102009512.2

(102.8)409.4

(105.4)(75.7)

11.5

239.8(106.1)

133.7(34.1)

99.6Full year revenue benefited from 23% higher realised oil prices, partially offset by 7% lower oil salesCash costs increased 9% but non-cash charges more than halved due to PNG LNG reserves bookingExploration expense increased 73% due to unsuccessful Wasuma and Korka wells2010 NPAT impacted by one off benefit associated with restatement of deferred tax balances, partly offset by impairments

+13.9%

+15.1%

+15.6%

+38.8%

+44.7%

+8.8%

10

2010 NPAT Drivers

0

25

50

75

100

125

150

200

US$m

175

225

250

133.6

20

09

NP

AT

(9.1)

Cash

OP

EX

101.3

Reven

ue -

Pri

ce

(32.9)

Reven

ue -

Volu

me

14.6

Tax

185.6

20

10

NP

ATP

rofi

t/Lo

ss o

n

Invest

men

ts &

Oth

er

(6.3)

Exp

lora

tio

n &

Im

pair

men

t

(71.3)

DD

&A

55.5

11

Active Cost Management

2010 2009US$’m US$’m

Field Costs- Oil: PNG- Hides

73.38.0

73.75.9

Other Prod’nOpex

81.3 79.6

- Oil- Hides

15.40.6

14.40.4

16.0 14.8

Net Corp Costs 16.6 10.7

FX gains (2.1) (2.5)

Total 111.8 102.8

Field Costs Other Opex Corp Costs/FX

US$/boe Total cash costs per boe

10.68

2.18

1.09

1.88

1.75

9.13

0

2

4

6

8

10

12

14

16

2007 2008 2009 2010

10.08

1.87

1.04

11.00

1.97

2.16

Cost focus to counter localised inflation and adverse FX movementsUnit costs impacted by declining volumes ~$1.00/boeHigher corporate costs due to strong A$ and LNG bonus

12

Liquidity

US$1.23 billion in cash at end March 2011. US$290 million available from term revolving facility, nil drawn down, resulting in liquidity of ~US$1.5 billion US$1.07 billion drawn down under PNG LNG project finance facility, US$2.99 billion remaining (OSH share) under present facilityCompany is well placed to meet existing commitments / base business plan with sufficient liquidity to deliver on strategic plan initiatives

2014

US

$m

m Liquidity (cash plus undrawn bank debt)

2011

13

PNG LNG Project

14

Kumul Terminal

Port Moresby

7°S

145°E

HidesWellsJuha

Facility

EPC3LNG Facility

Kutubu CPF

Moro Airport

145°E 146°E144°E143°E

6°S

8°S

9°S

GorokaKundiawa

Mt. Hagan

Mendi

Kerema

EPC5BKomo

Airfield

147°E

Daru

Wabag

PNG LNG Project

EPC1Telecommunications

(not shown)

Lae

EPC2Offshore pipeline

EPC5AOnshore pipeline

and Infrastructure

Gobe PF

Kopi Wharf

C1Support

Infrastructure

C2Support

Infrastructure

C1

EPC4Hides Gas

Conditioning Plant

Oil Field

Gas Field

Prospect

Oil Pipeline

Gas Pipeline

OSH Facility

LNG Facility

Major Road

Lead

100km

15

PNG LNG Plant Site, Port Moresby

2010 Activities :Early construction activities including accommodation camp, road bypass

2011 Activities :Procurement, earthworks, foundations (first foundation poured end March)Commencement of structural steelwork, pipe racksJetty works, tank foundations

16

Kopi Shore Base and Onshore/Offshore Pipelines

2010 Activities:Construction of Kopi wharfCommencement of delivery of pipe to Kopi

2011 Activities :Continued procurement and mobilisation of onshore/offshore pipeRoute clearance and commencement of onshore pipe layPreparations for offshore pipe lay

17

PNG LNG Upstream

2010 Activities:Opening supply routesEarly construction activities in Highlands including clearing, road and bridge upgradesEarthworks at Hides plant site and Komo airfield

2011 Activities :HGCP and Komo Airfield

Earthworks, foundations and start of construction

Mobilisation of drill rigs

18

Associated Gas (AG) Project

2010 Activities:Planning activities for AG work and PL Extension Project

2011 Activities :Commencement of construction

19

Training Facilities

2010 Activities:Construction of training facilities at POM Tech in Port Moresby (operational) and Juni

2011 Activities :Complete Juni training facility

20

2011 PNG LNG Project Focus Areas

Ramp up of logistics and resourcingOnshore pipeline installation –terrain, multiple work frontsContinued work with project area communitiesEfficient use of landowner companies to deliver maximum local content (over K1.5bn to date)Engagement with Government during National Election build up

2121

Timetable

2010 2011 2012 2013 2014

FinancialClose

•Continued early works•Detailed design•Order long leads and place purchase orders

•Open supply routes•Contractor mobilisation•Commence AG construction

•Complete pipe lay•Ongoing drilling•Complete Hides plant•Commission LNG plant with Kutubu gas

•Ongoing procurement and mobilisation

•Airfield construction•Drilling mobilisation•Start offshore pipeline construction

•Onshore line clearing and laying

•Start LNG construction

First Gas from Train 1,

then Train 2

•Complete AG •Continue onshore pipe lay

•Complete offshore pipe lay

•Start Hides plant installation

22

Expansion Activities

23

Strong Asian LNG Markets Outlook

Strong long term demand outlook for LNG, particularly post JapanearthquakeMultiple potential suppliers of LNG post 2015 Economically robust brownfield expansions with quality operators will have advantage when seeking offtake agreements

Source: Wood Mackenzie and Deutsche Bank, February 2011

MMTPA

JapanJapan

South KoreaSouth KoreaTaiwanTaiwanIndiaIndia

ChinaChina

0

50

100

150

200

250

300

2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

OtherOtherMalaysiaMalaysia

SingaporeSingapore

ThailandThailand

ChileChileMexico WestMexico West

24

PNG Gas Growth Hubs

Oil Search pursuing two-pronged LNG expansion strategy

Highlands-based resources close to PNG LNG infrastructure

Gulf region gas, integrated with existing gas infrastructure or stand alone

Core development infrastructure being built by PNG LNG

Government pushing for further development

LNG expansion highest returns but power opportunities also attractive

Kumul Terminal

Juha

Hides

Moran

Agogo

Gobe Main

HidesConditioning Plant

CSG Exploration

Kutubu

Flinders

Huria

Barikewa

Pandora

Uramu

P’nyang100km

Angore

ExplorationGas Resources

PNG LNG ProjectGas Resources

Non PNG LNG Gas Resources

SE Gobe

Kimu

Juha North

PNG LNG Expansion

PotentialLNG hub

3D Seismic Regions

3D Seismic Regions

7°S

6°S

8°S

145°E144°E143°E142°E 146°E

9°S

25

PNG LNG Expansion

PNG LNG co-venturers working constructively to implement resource maturation programme in Highlands

Integrated exploration and appraisal programme includes:

Hides appraisal

Evaluation of additional resource potential of Associated Gas fields

Appraisal of 1.5 tcf P’nyang gas field in PRL 3

Exploration well on Huria

Reviewing existing discoveries in “catchment area” (Pandora PRL 01, Barikewa PRL 09 and UramuPRL 10)

Kumul Terminal

Hides

Gobe Main

Kutubu

Huria

Barikewa

Pandora

Uramu

P’nyang100km

ExplorationGas Resources

PNG LNG ProjectGas Resources

Non PNG LNG Gas Resources

SE Gobe

7°S

6°S

8°S

145°E144°E143°E142°E

9°S

Moran

Agogo

26

Gulf Area LNG

PPL260

Kumul Terminal

PRL01

PPL234

PRL10

9°S

145°E 146°E144°E

Pandora

Gobe

Uramu

PPL276

PPL312

PPL338

PPL339

PPL339

339

339

338

338

338

339

339

339

3398°S

7°S

339

PPL244Flinders

3D Seismic Regions

3D Seismic Regions

50km

2D Seismic Lines

2D Seismic Lines

Oil Search believes Gulf Area has best potential for finding significant new gas accumulations

Over past year, OSH has:

Secured broad licence position

Completed major 3D seismic survey and commenced new 2D seismic onshore

Interpretation of offshore 3D seismic underway, initial results encouraging with a number of leads and prospects identified

Potential partner discussions underway

Targeting equity of ~30-35%

Commence multi well drilling programme in 2011 through 2012

27

Operations Review

2828

2011/12 Development / Appraisal Drilling Activity

PRL08

PPL240

PRL11

PDL7

PPL233

PDL2

PDL5PDL6

PRL09

PRL14

PPL260

PPL219

PDL4

PPL219

PDL3

PDL4

50km

Angore

Hides

SE Mananda

BarikewaKimu

Iehi

PPL240

PPL233

APPL350

6°S

143°E 144°E

7°S

Usano:2011 : 1 well, 1 workover

2012 : 1 well

Kutubu:2011 : 1 well, 1 workover

Agogo:2011 : 1 well2012 : ±1 well

Moran:2012 : 1-2 wells

SE Gobe:2011 : 4-5 workovers

Gobe Main:2011 : 1 workover

Mananda 5

PPL219

190

190PPL240

240

PRL11

PDL8PDL8

PDL8

Despite maturity, PNG oil fields continue to be solid performers

2011 production will be impacted by:

Natural decline, being addressed by development and workover programme

Two week shutdown for tie-in of Associated Gas facilities

Production guidance for 2011 unchanged at 6.2 – 6.7 mmboe, with production out to first LNG broadly flat, subject to success of work programmes

Focus is on capturing additional in-field and near field reserve opportunities

Strong commitment to cost effectiveness

29

Near Field Exploration and Appraisal

Major review undertaken as part of Strategic ReviewVery high historical success rate, with excellent returns achieved26 near field appraisal and exploration prospects and leads identifiedRisked net recoverable potential resource estimated to be over 125 mmboeMajor programme planned to further evaluate this potential over next three years

6°30’S

143°E

MANANDA & SE MANANDA

MORAN

KUTUBUSE HEDINIA

Risked mean recoverable oil

Risked mean recoverable gas

20km

Prospect & Lead

30

Early social mapping and survey work in progressTargeting development decision in 4Q11

Oil and gas discovered in four zones at Mananda 5 in PPL 219 (OSH 71.25%, JX Nippon 28.75%)Mananda 5 well now suspended and assessment of conceptual development options is underway

18km flowline tie-back to SE ManandaFurther development drilling

Mananda 5 Discovery and Conceptual Development

0 2 4 61 Km %,''''

1''''

ª

ª'ªª'''

ªªk

k

µY

ª'

ª''ªª'

''''' 'ªªªª'

ªªª'1'

11 '''

PDL 2

PDL 6 PDL 5

APPL 350

PPL 219

PPL 287

PPL 233

APFAHT 2

AHT 1ADT 2

ADT 1ADD 3

Moran 9

Moran 8Moran 6X

Moran 4X

Moran 14Moran 13 Moran 12

Moran 10

Moran 14AMoran 12A

Mananda 5

NW Moran 1

Mananda 4X

Mananda 3XMananda 2S

SE Mananda 5SE Mananda 4SE Mananda 3SE Mananda 2X

SE Mananda 1X

Mananda 3XST1

143°5'E143°0'E142°55'E

6°10'S

6°15'S

6°20'S

PotentialPipeline Route

0 2 4 61 Km

SE MANANDA

MORAN

AGOGO

31

Oil Search Production Outlook

10 Net Production (mmboe)

0

2

4

6

8

2008 2009

8.60

7.66

2010

8.12

2011

6.2-6.7

2012 2013Forecast (excluding Mananda-5)

MENAHides GTESE ManandaSE GobeGobe MainMoranKutubu

32

MENA Exploration

Dubai Office

Tunis OfficeTajerouine + Le Kef- Recently completed 600km 2D- 2 commitment wells by 2Q 2012

K42 & Shakal- Completed 200km of 2D in

K42 and 50km of 2D in Shakal- Discussions underway to

convert K42 seismic option into PSC

Block 3 & 7- Tubb’a gas condensate discovery in

Block 3- Al Meashar 2 completed- Exploration/production options will be

reviewed post Al Meashar 2

33

Sustainability

34

Focus on Sustainability

In light of increasing value of PNG assets going forward, Oil Search is seeking to further enhance its focus on managing PNG sustainability issues (traditionally an area of strength)

New Sustainability Group has been formed:

Focus on communities, government/regulatory and in-country business relationships

Specific initiatives involve:

Relationship building, Government, Landowners etc

Facilitating transparency and equity in benefits distribution

Enhancing capacity to capture growth opportunities

New Health Foundation also being established

Expansion of existing health programmes (Malaria, HIV/AIDS etc)

35

Oil Search supports many social programmes…

36

Summary

37

Summary

Fully focused on delivery of major Strategic Initiatives:

PNG LNG Project delivery underway:Commencing construction at PNG LNG plant site, HGCP and Komo Associated gas and life extension projects Focus on management of in-country issues

Further pursuit of gas expansion and gas resource accumulation:Hides evaluation, P’nyang appraisal and Huria exploration Gulf area seismic and prospect maturation

Continued strong oil field production performance:Optimisation of current oil and gas production Evaluation of Mananda 5 developmentInfield and near field exploration/appraisal opportunities

Optimisation of value of MENA assetsOperate business in transparent and sustainable mannerActivities all underwritten by strong balance sheet and ample liquidity to meet LNG obligations and expansion focused activities

38

O I L S E A R C H L I M I T E D

39

DISCLAIMER

While every effort is made to provide accurate and complete information, Oil Search Limited does not warrant that the information in this presentation is free from errors or omissions or is suitable for its intended use. Subject to any terms implied by law which cannot be excluded, Oil Search Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.

This presentation also contains forward-looking statements which are subject to particular risks associated with the oil and gas industry. Oil Search Limited believes there are reasonable grounds for the expectations on which the statements are based. However actual outcomes could differ materially due to a range of factors including oil and gas prices, demand for oil, currency fluctuations, drilling results, field performance, the timing of well work-overs and field development, reserves depletion, progress on gas commercialisation and fiscal and other government issues and approvals.