Together For Growth ANNUAL REPORT 2013

Airport Heights: Ghala, P.O. Box 3395, CPO, P.C. 111, Sultanate of Oman. Tel: +968 24625400, Fax: +968 24625406Shatti Al Qurum: P.O. Box 560, Mina Al Fahal, P.C. 116, Sultanate of Oman. Tel: +968 24609999, Fax: +968 24609900

Qalhat Complex: Tel: +968 25547777, Fax: +968 25547700

A N N U A L R E P O R T 2 0 1 3

His Majesty Sultan Qaboos Bin Said

Million Man Hours without Lost-Time Injury (LTI).

Of Company's Net Income After Tax (NIAT) dedicated for Social Investment Programmes.

Million US$ - amount invested in over 3,200 projects and initiatives across the country.

10

130

1.5%

Million US$, the amount allocated for staff training and development in 2014.

Number of Staff.

Information provided are as at December 2013.

Staff are undergoing professional qualifications, sponsored by the Company.

6

+60

560

Omanisation - Oman LNG has remained at the forefront of attracting and retaining the best talent. Omani nationals are occupying seven of the eight positions in the Company’s Management Team.

Pacesetting Reliability of Trains.

Staff sponsored by the Company for higher education.

www.omanlng.com

+90%

+100

+99%

At A Glance

ANNUAL REPORT 2013

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The Shareholders:

ANNUAL REPORT 2013

Oman LNG in Brief 8

Our Vision, Mission, Core Values and Strategic Objectives 9

Board of Directors 10

Chairman’s Message 12

Corporate Governance 14

Chief Executive’s Summary 16

Management Team 17

The Crew: Employing and Nurturing Talent 18

Powering the Engine: Producing LNG Safely and Reliably 20

Setting Sail: Protecting Environment and Caring for People 22

Arriving at the Destination: Global Ambassadors through LNG Cargo Sales 24

Taking Inventory: Financial Performance 26

Qalhat LNG 28

Returning Home: Social Investment Programme 30

Contents

ANNUAL REPORT 2013

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Oman Liquefied Natural Gas LLC (Oman LNG) is a joint venture company established by a Royal Decree in 1994 and operates under the laws of the Sultanate of Oman. The Company engages in the business of producing and selling Liquefied Natural Gas (LNG) and its by-product, Natural Gas Liquids (NGLs).

Oman LNG undertakes, directly or indirectly, project operations and related activities essential to liquefy, store, transport and market Oman’s natural gas and to deliver LNG to customers. The Company operates 3 liquefaction trains - at its site in Qalhat near Sur with a nameplate capacity of 10.4 million tonnes per annum (mtpa).

The Company’s activities contribute to the Government of Oman’s objectives of diversifying the economy. Oman LNG’s Liquefaction Plant is located on the coast at Qalhat near Sur in the South Sharqiyah Governorate and its head office is in Muscat.

As of September 1, 2013, Oman LNG officially integrated with Qalhat LNG. The integrated entity operates under the name of Oman LNG.

Oman LNG in brief

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Our Strategic Objectives1. Creating Value for all our Stakeholders

In an environment of no short-term upward flexibility in feed gas supply from domestic sources and continuing uncertainties in international markets, it is imperative that we continue to satisfy our customers as a dependable supplier of LNG and NGL whilst maximising the value along our entire hydrocarbon chain. We will achieve this through further minimising energy usage, hydrocarbon losses and operating costs and maximising the value creation of all our assets by seeking and exploiting conventional and non-conventional commercial and logistic opportunities.

2. Engaging Effectively with our External Stakeholders

The reputation of our Company and sustaining our licence to operate depends critically on retaining the trust of customers, suppliers and contractors and their continuing desire to do business with OLNG. This can never be taken for granted and will depend, ultimately, on the professionalism, integrity and fairness that all our employees demonstrate in their relationships with our stakeholders.

In equal measure, effective and engaging relationships with our communities and the Omani people at large are equally important for retaining our licence to operate. As we move our efforts in this area for a Social Investment Programme to a Development Foundation, it is imperative that the effectiveness and reputation of the Company's Social Investment activities increase.

3. Managing our Business Safely, Reliably and Efficiently

The reputation of our industry and credibility of Oman LNG as a reliable and trustworthy supplier has grown to depend strongly on excellence in personal safety and asset integrity, coupled to effective management of all the business processes within the Company, plant reliability and dependable delivery of our products. Achieving top-quartile performance in these areas requires operational excellence, organisational effectiveness and passionate adherence to best practices.

4. Growing our People and our Business

After 13 years of successful operations and the development of a truly professional cadre of staff, our focus moves to transforming Oman LNG into a mature organisation with efficiency and professionalism at the core of all we do. With the employment opportunities in the 2013-2016 Business Plan, we must ensure that we remain attractive to the best talent and offer development and challenges that bring real personal growth to our employees and parallel growth in our business results in the critical areas of optimised revenues, cost efficiency and robust processes. It wins the trust of our customers, communities and other stakeholders. The case for continuous change remains compelling.

Our VisionThe Best At What We Do

Our Mission• To produce, market and deliver LNG safely, reliably and profitably• To develop our business and employees to their full potential• To be a trusted partner in the sustainable development of Oman

and its people

Our Core ValuesIndividual Behaviour

Integrity• Living the OLNG values • Doing what is right even if no one is watching

Professionalism• Producing quality work at all times• Efficiency and effectiveness in carrying out assigned

roles and responsibilities

Accountability• Delivering on promise based on agreed targets• Demonstrating ownership of mandated assignments

Organisational Behaviour

Team Work• Collaborating with others to deliver on organisational objectives• Value differences and leverage on diversity of the team

Care & Respect• Listening to concerns of stakeholders• Respecting diversity• Considering stakeholders’ needs

Empowerment• Having confidence and trust in delegated responsibilities

to staff to execute tasks competently• Coaching and mentoring to continuously develop staff

Business Behaviour

Transparency & Fairness• Engage staff/stakeholders in an open, transparent

and timely manner• Provide equal opportunity to all staff without prejudice• Impartiality in staff reward and recognition • Build courage to give objective feedback

Reputation & Loyalty• Compliance with the law and business principles in order to

maintain credibility with stakeholders and the license to operate• Uphold business interests at all times without breaching

organisational confidentiality

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Saber bin Said Al Harbi

Director General of Economic Statistics, National Centre for Statistics and Information, Government of Oman

H.E. Dr. Mohammed bin Hamad Al Rumhy

Minister of Oil & Gas,Government of Oman,

Chairman of the Board of Directors ofOman LNG L.L.C.

Bader bin Ali Al Sariri

Director of Petroleum Concessions,Ministry of Oil and Gas,

Government of Oman

Saif bin Hamad Al Salmani

Director General of Planning & Projects Evaluation,Ministry of Oil and Gas, Government of Oman

Tahir bin Salim Al Amry

Director General of Treasury and Accounts,

Ministry of Finance, Government of Oman

H.E. Dr. Abdulmalik bin Abdullah Al Hinai

Advisor to the Ministry of Finance,Government of Oman,

Deputy Chairman of the Board of Directors of

Oman LNG L.L.C.

Board of Directors

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* ITOCHU Corporation attends all Board Meetings but does not have voting rights on the Board.

Olawale Animashaun

Oman LNG’s General Counsel and Company Secretary

Takashi Yasuda

Deputy C.O.O. & General Manager,Natural Gas Business Department,Energy Division No.1,ITOCHU Corporation

Sang Hwan Park

Managing Director and Chief Executive Officer,Korea LNG Limited

Hiroshi Nakamura

Deputy General Manager,Natural Gas Division IV,Energy Business Unit II,Mitsui & Co. Ltd.

Yoshinobu Satomi

General Manager,Middle East Natural GasBusiness Department,Natural Gas Business Division,Energy Business Group, Mitsubishi

Harib Al Kitani

Chief Executive Officer, Oman LNG

Dr. Antonio Jose Da Costa Silva

Chairman of theManagement Commission,

Partex Oil & Gas

Xavier Preel

Vice PresidentGeneral Affairs, Middle EastExploration and Production,

TOTAL

Bert Christoffels

Vice President Production Excellence & GDH CSU,

Shell Projects & Technology

John Blascos

Shell Country Chairman and General Manager,

Shell Development Oman LLC

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In the year 2013, our LNG industry entered a new era in its development with the integration of Oman LNG and Qalhat LNG into one entity.

The many areas of similarities and indeed mutual cooperation that existed between both companies prior to the integration, present clear opportunities for growth that is expected to come from a stronger, unified establishment that has now emerged under Oman LNG.

Yet as a significant contributor to the national economy, the industry carries substantial responsibilities that go beyond revenue and into other responsibilities including safety of operations, responsiveness to the needs of society and empowering employees to effectively handle the challenges of future growth.

I am proud to note that 2013 was another remarkable year for the Company. Oman LNG successfully maintained its excellent record in safety with the achievement of almost 10 million man-hours without a Lost Time Injury (LTI).

The new integrated structure has also brought more opportunities for nationals to broaden their experience in this critical industry and work to make important contributions for its development.

The global LNG trade is forecast to grow and our country’s role as a reliable supplier for this much-in-demand fuel will be better enhanced by our people consciously taking responsibility for its efficient operations.

Oman LNG continues to be an outstanding example for other businesses in the way it supports the Government’s aspirations for developing society and improving the quality of life in the country.

Considering the average pricing for a barrel of oil stood at US$ 110 in 2013, the results of Oman LNG’s performance for the year show stewardship as seen in this report, one of the best since the inception of the Company.

In the years ahead, the culture of prudent management and careful attention to the business, ensuring the best use of resources will be the overriding task of the Company. This in turn will impact positively on the country’s progressive development for our common good.

We offer our appreciations to His Majesty Sultan Qaboos bin Said for his wisdom, guidance and support to this industry and also to the Government of Oman for its commitment to the progress of both the business and the workforce.

H.E. Dr. Mohammed bin Hamad bin Saif Al RumhyMinister of Oil & Gas and Chairman of the Board of Directors

Chairman’s Message

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Board Composition

The Board of Directors comprises a maximum of fourteen (14) non-executive members as follows: Government of the Sultanate of Oman: Seven (7) members, including the Chairman and the Vice-Chairman; Shell: Two (2) members; Other shareholders: One (1) member each. Itochu Corporation is represented at the Board meetings by an Itochu nominee who has no voting rights.

Board Activities in 2013

In 2013, the Board of Directors met in March, June and November. At the first meeting in March held at the OLNG plant in Sur, the Board reviewed/ approved the 2012 corporate performance and scorecard. It also endorsed the financial statement and final dividend for approval by Shareholders at the General Meeting. The General Meeting of the Shareholders also approved the appointment of KPMG as the Company’s external auditors for 2013. The Board also approved the budget for the Company’s Enterprise Resource Planning (ERP) project. In addition, the Board received a report on the status of the integration exercise of Oman LNG and Qalhat LNG. The summer Board meeting in June 2013 was aligned with Qalhat LNG Board at the same venue. It was a momentous and ground breaking meeting for both Boards as each of the Boards separately approved the commencement of the integration of the management of the two companies. The approvals were preceded by a presentation made by the consultants – Deloitte – to a joint sitting of the two Boards. The joint sitting enabled the directors of the two companies to get fuller insight of the proposed integration and provided opportunity for questions and issues to be addressed at the same sitting, enabling all sides to have common understanding going forward. After the joint sitting, each Board met separately to consider and approve the integration within its own governance framework. This was the

beginning of a very special journey of both companies. The Board also reviewed the Oman LNG Business Plan 2014-2018 Premises.

In the November meeting, the Board approved the Proposed Business Plan 2014–2018 and the 2014 Operating and Capital Budgets. The newly revamped Manual of Authorities reflecting necessary changes arising from the integration was approved. In addition the Integrated Assurance Plan 2014 – 2018 was reviewed and approved. The CEO presented his report for the year 2013. One of the key highlights was the successful integration of the Management of Oman LNG and Qalhat LNG.

Shareholders’ Committees

The Shareholders’ Committees were established under the Shareholders’ Agreement to assist the Board in an advisory capacity. There are four committees which address 1) Technical 2) Personnel 3) Financial and 4) Commercial matters and meet prior to each board meeting. Each shareholder has the right to be represented on each shareholder committee. To improve efficiency, the Personnel, Financial and Commercial Committees meet jointly, whilst the Technical Committee sits separately. The Shareholder Committees do not take decisions for the Company, but

*Reports directly to the Chairman of Audit Committee

Corporate Governance

Governance Structure

Chief Executive Officer

Shareholders Committees:

-Technical

-Joint (Personnel, Finance, Commercial)

Board Committees:

-Audit Committee

-Management Remuneration and Succession Committee

Deputy CEO & ChiefHuman Resources Officer

Chief Financial Officer & Deputy CEO for QLNG Affairs

Chief Commercial Officer

Chief Operating Officer

Chief IT & Investment Officer

Chief Marketing Officer

Chief Corporate Affairs Officer

Chief Internal Auditor*

Shareholders

Board of Directors

Best Company in Corporate Governance by World Finance

ANNUAL REPORT 2013

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review and endorse the management recommendations for the Board of Directors to approve. Each committee met three times during 2013. As planned, these meetings were prior to the meetings of the Board.

Board Committees

There are two Board Committees: 1) Audit Committee and 2) Management Remuneration and Succession Committee.

The Audit Committee

The purpose of the Audit Committee is to provide an independent oversight of the systems of internal controls and financial reporting processes through a review of the quality, independence and effectiveness of internal and external audits. The Audit Committee reports directly to the Board of Directors via its Chairman and comprises non-executive members as follows: Government of the Sultanate of Oman: Three (3) representatives, including the Chairman; Shell: One (1) member; Non-Shell shareholders: One (1) representative chosen in rotation; Any Shareholder: One (1) technical representative agreed by the shareholders. The Audit Committee met three times in 2013. The meetings were attended by the Acting Chief Internal Auditor and the Chief Executive Officer. The Chief Financial Officer was present

when the Statutory Financial Audit and Management Letter were presented by the Statutory External Auditor, KPMG.

To ensure independence, the Chief Internal Auditor reports directly to the Chairman of the Audit Committee. In line with best practice, the Internal Audit department adopts a risk based methodology in proposing and executing its audit programme. Several assurance audits were also carried out by external parties, including the Company’s External Auditors, Shareholders, International Standards Organisations (ISO) and the Technical Advisor. During the 2013 meetings, the audits carried out during the year were reviewed by the committee for levels of compliance with the control framework. As part of its mandate to ensure an effective control is in place, the committee also tracked the management's compliance with proper and timely closure of agreed audit actions. In addition, the Committee reviewed audit reports, the management letter and associated Financial Statements for 2012 by the Statutory External Auditors for endorsement by the Board of Directors.

Management Remuneration and Succession Committee

The Management Remuneration and Succession Committee was established

in November 2008 by a Board Resolution to ensure that Oman LNG continues to identify, and develop its leadership talent, providing it with rewards and incentives commensurate and competitive with market practices. The Committee reports directly to the Board of Directors via its Chairman and comprises non-executive members as follows: Government of the Sultanate of Oman: Three (3) representatives, including the Chairman; Shell: One (1) member; Non-Shell Shareholders: Two (2) representatives chosen in rotation. The first sitting of the Committee was held in 2009.

The Company Management

The Management of the Company implements an Enterprise-wide Risk Management (ERM) approach that provides a proactive framework of risk management and mitigates risks and their potential impacts on the achievement of the Company’s strategic objectives and goals. Each identified risk is assessed and appropriate measures are introduced to provide all reasonable assurances that threats will not materialise and in the event they do any adverse impact is minimised. The process and identified risks are reviewed annually.

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The integration of Oman LNG and Qalhat LNG, without doubt made 2013 a defining year for the country’s LNG industry. With steadfast support from the Government of Oman and other shareholders, the complete integration of the two companies on 1st September has paved the way for the LNG industry in Oman to provide a more efficient delivery of supply to our buyers and the wider energy market, in a manner that is reliable, yet flexible in responding to rising global demand for energy. The binding together of the two companies into one stronger entity under Oman LNG brought to actualisation many months of careful, detailed planning, to make capital of diverse strengths, and minimise any potential risks or competition they posed as separate companies.As a result, we are now better positioned to optimise our resources for the benefit of the Government, other shareholders, the market and all our other stakeholders.Our focus in the years ahead will be to maintain the integrity of our plant assets, continue to place a premium on health, safety and the environment (HSE) that safeguards our people and operations, and through a robust training and development programme, equip ourselves to efficiently meet the challenges in the industry.

HSEBuilding on past records of excellence in safety, we were able to close 2013 with a strong record, achieving almost 10 million man-hours without a single Lost Time Injury (LTI). With all hands on deck, we aim to sustain this performance.Although the integration resulted in an overall increase in staff requiring greater HSE consciousness, this level of attainment in our HSE was also against a backdrop of shutdown activities that drew high numbers of personnel to the plant to execute necessary maintenance/repair work and return the train to production in time to meet our obligations.We remain strongly committed to our emphasis on safety. A commitment that makes us chronically uneasy about taking any activity for granted and to avoid complacency with our achievements in this area. Further, in 2013, we continued to involve resident contractors in our HSE programmes, engaging all staff with personal commitments of “I will” statements and thus promoting our culture of safety with all our stakeholders.

OmanisationAnother consequence of the integration exercise was an increase in levels of Omanisation at Oman LNG, which at the end of 2013 stood at just over 90%. This figure is in line with recently released government target for Omanisation in the country’s energy industry.Across the Company, the integration has opened up new positions to adequately cater for an expanded portfolio of business activities in different areas. These positions are being filled by capable Omani hands to drive the business forward and present our people with valuable learning that prepares them for leadership in many aspects of our business.

Social ResponsibilityAs a responsible value-adding corporate citizen, Oman LNG supported a number of welfare programmes under its social investment programme in the country.The programmes undertaken by the Company in the course of the year included:

• The building of a state-of-the-ar t Sailing School in Sur, in partnership with Oman Sail.

• With Oman Road Safety Association (ORSA), the Company launched a Road Safety Mascot to drive home the message of safety on our roads through artfully crafted communication messages.

• Vehicles for the Omani Women’s Association (OWA) to aid transportation of children and women for the association’s activities.

• Provision of modern health equipment to Sur Hospital.

Our support, for which we have received a number of recognitions in the past, remains a vital contribution to the development of Oman and its people.

With plans for the establishment of an Oman LNG Foundation, the Company will have a dedicated team to further execute its carefully tailored social investment programmes.

Our ResultsIn this annual report, I am happy to present you with some of the highlights of our financial performance and operations in 2013. A year which saw record breaking achievements in different areas of the business.These results are an unfolding manifestation of our vision of being the “Best At What We Do” so we maintain our position as a trusted partner throughout the LNG value chain and in the growth, development and diversification of the economy of the Sultanate and its people.The management and staff of Oman LNG who strived and worked quite hard throughout the year are extremely grateful for the continuing guidance of our shareholders, and the Board of Directors and its Chairman for their support throughout 2013.We also recognise the opportunities that have been created for all of us through the continuing success of Oman, made possible by the vision and leadership of His Majesty Sultan Qaboos bin Said and the Government of Oman.

Harib Al KitaniChief Executive Officer

Chief Executive’s Summary

ANNUAL REPORT 2013

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Amor Al Matani

Deputy Chief Executive Officer & Chief Human

Resources Officer

Management Team

Hamood Al Sinaidi

Chief Marketing Officer

(QLNG)

Harib Al KitaniChief Executive Officer

Adnan RajabChief Commercial Officer

Saif Al Harthy

Chief IT & Investment Officer

Hafidh Al Harthy Chief Financial Officer & Deputy CEO for QLNG Affairs

Khalid Al Massan Chief Corporate Affairs Officer

Rene de NierChief Operating Officer

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Employing and Nurturing Talent

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Omani Joiners Omani Leavers Net Intake/Exit

Expatriate Joiners Expatriate Leavers Net Intake/Exit

Omanis Expatriates

Omani Joiners & Leavers

Expatriate Joiners & Leavers

Employment Profile

2012

2012

2011 2012

2011

2011

2010

2010

2009

2009

20102009

2013

2013

2013

Key Highlights• Following the integration exercise, more

opportunities became available to Omani nationals to develop leadership skills as well as transfer knowledge across different areas of the LNG business through internal postings to other departments in the Company.

• We continue to emphasise training for all staff as a way of empowering our people to remain the best equipped in the oil and gas industry.

In Numbers

• Total Staff: 560.

• Omani Staff: 501.

• Omanisation: 90.3% against a target of 90%.• 11 Omani staff on cross-posting.

• 1000 courses delivered to staff.

-9 9

5

-10

15

-13

60 73

-9 -11

1324

22 35

-9

18

9

-17

-1

16

7

-3

10

-3 3

-11 -12

8 15

55

343 348 409 421 501

56 55 5954

ANNUAL REPORT 2013

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Safe and Reliable Production

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LNG Production in Million Tonnes

Key Highlights• During the year, our Company executed a major

shutdown on Train 2, the biggest shutdown since construction. The high integrity of the plant in 2013 furthered our key business goals of producing liquefied natural gas reliably.

In Numbers• LNG production & capacity: 8.9 mtpa

against 10.4 mtpa capacity.• Reliability: 98.3%.• Utilisation: 87.9%.• NGL production: 267,969 tonnes.

2009 2010 2011 2012 2013

8.6

8.8

8.7

8.4

8.9

Plant Reliability (%)

2009 2010 2011 2012 2013

98.80

95.80

96.10

96.90

98.30

NGL Production in Tonnes

2009 2010 2011 2012 2013

248,602

251,334

251,397

251,468

267,969

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Protecting Environment and Caring for People

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12 Life Saving Rules

Verify isolation before work begins and use

the specified life protecting equipment

While driving, do not useyour mobile and do not

exceed speed limits

No alcohol or drugs while working

or driving

Conduct gas testswhen required

Do not smoke outside designated

smoking areas

Do not walk undera suspended load

Obtain authorisation before overriding or disabling safetycritical equipment

Work with a valid WorkPermit when required

Wear your seat beltProtect yourself against a fall when working

at height

Follow prescribed journey Management Plan

Obtain authorisation before entering a confined space

Key Highlights

• In 2013, we began adopting a “Chronic Unease” Health, Safety and Environment (HSE) policy to ensure the Company stays alert in matters of safety at all times, irrespective of past achievements and milestones.

• During the year, we also achieved a reduction of our hazardous waste inventory through proper disposal in accordance with regulatory guidelines.

In Numbers

• Achieved almost 10 Million Man-hours and 1,301 days without LTI.

• Growing HSE involvement of resident contractors.

• Successfully executed major shutdowns without recordable HSE cases.

• Zero overdue inspections of safety critical equipment.

Key Performance Indicators

2013

2013

2013

152013

62

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Global Ambassadors through LNG Cargo Sales

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Commercial Activities

Key Highlights

• Participated in major international conferences and exhibitions.

• The integration offers greater opportunities to serve the market by deploying swaps and diversions of cargoes.

• Kept our reliability to supply markets with clean energy.

In Numbers

• 139 cargoes were loaded from Oman LNG’s plant in Sur; 90 for Oman LNG and 49 for Qalhat LNG.

• 40 NGL cargoes were lifted.

• Sohar LNG was utilised for 283 days being sub-chartered to various customers and partners.

• Achieved a Shipping Utilisation of 78%.

Total number of LNG cargoes

delivered

9589

8785

90

Percentage of shipping utilisation

87%47%

88%95%

78%Total number

of NGL cargoes produced

3536

3745

40

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Financial Performance

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Key Highlights

• Through a combination of relatively stable energy prices averaging US$ 110.72 in 2013 and strict control over Operating Expenditure Budget, Oman LNG achieved higher revenues and profits in 2013.

Financial Highlights of Oman LNG for 2013

• Revenue: US$ 4.49 billion, US$ 149 million higher than 2012.

• Net Income After Tax (NIAT): US$ 2,018 million, an increase of US$ 68 million from 2012.

• Cost Savings: US$ 6.4 million.

Opex 2013 (Actual)

Corporate

Manufacturing

Manpower

Shutdown

Financing

SIP

19%

14%

29%

15%

7%

15%

Historical Opex 2009-2013

020406080100120140160180200

20132012201120102009

US

$ m

illio

n

US

$ m

illio

n

172

150160

173

199

Revenue vs. Net Income After Tax 2009-2013

0

1,000

2,000

3,000

4,000

5,000

2009 2010 2011 2012 2013

Revenue

Net IncomeAfter Tax (NIAT)

2611

1137 13871782 1950 2018

3131

39634342 4491

ANNUAL REPORT 2013

27

Qalhat LNG

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Shareholders

Government of Oman 46.84%; Oman LNG 36.8%; Union Fenosa 7.36%; Itochu Corporation 3%; Osaka Gas Australia Pty 3%; Mitsubishi Corporation 3%.

History

Qalhat LNG began operations in 2005 with a single train that made up the third liquefied natural gas production unit at Qalhat in Sur. The train is operated by Oman LNG on behalf of Qalhat LNG.

Qalhat LNG has three long-term sale and purchase agreements (SPAs) for a total contracted volume of approximately 3.3 million metric tonnes per annum (mmtpa).

The agreements to supply LNG include a 20-year SPA with Spain’s Union Fenosa Gas (1.65 mmtpa), a 17-year SPA with Japan’s Osaka Gas (0.85 mmtpa) and a 15-year SPA with Mitsubishi Japan (0.8 mmtpa).

On 1st September 2013, Qalhat LNG became completely integrated with Oman LNG.

Financial Highlights of Qalhat LNG for 2013

• Revenue amounted to US$ 1.04 billion. More than a third of this generated via diversion transactions.

• Our investments are performing extremely well. As at the end of the year, we have invested in five entities with an average yield of 13% in 2013. Taking capital appreciation into perspective the total return would be 53%. We will continue our mission of

carefully scouting for more opportunities without getting exposed to undue risk.

• In spite of challenges, we are pleased to report that we, along with our long term partners, successfully diverted 30 cargoes from 2013 ADP.

Shareholders

Union Fenosa

Mitsubishi Corporation

Itochu Corporation

Oman LNG

Osaka Gas Australia Pty

Government of Oman

3%

3%3%7.36%

36.8%

46.84%

Union Fenosa Gas

Mitsubishi Corporation

Senboku Power Fuel Co. Ltd.

Long-Term Buyers

24.5%

24.5%

51.0%

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Social Investment Programme

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Key Sustainability Indicators(US$ Million)

Key Highlights

• Social Investment is an important part of both

Oman LNG and Qalhat LNG business. It provides an

opportunity for the Company to give back to the society

from the revenues generated from the sale of LNG.

• Our Social Investment Programme (SIP) is thus a

commitment to the prosperity of the Sultanate that

goes beyond income generated from the Government’s

shareholding in the Company and the taxes the

company pays as a responsible corporate citizen.

In Numbers

• Support for the Oman Road Safety Association (ORSA) to launch mascots in communication that further the message of safety on the roads.

• 100 diploma/degree scholarships for low-income families and special cases.

• New ENT and ultrasound equipment for Sur Hospital.• Establishing an Oman Sail School in Sur. • Purchase of buses for the Omani Women’s

Association in Al Mudhaibi (Sharqiyah, North) and Izki (Ad Dakhiliya).

2013

2013

2013

2013

3.9

3.93.2

1.90.9

1.91.3

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