Uganda operational logistics INTERIM RESULTS Tullow Oil plc Uganda Analyst Visit October 2007 Slide 1

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1 Uganda operational logistics INTERIM RESULTS - 06 Tullow Oil plc Uganda Analyst Visit October 2007 Slide 1

2 Lake Albert Remote Location Remote from oil industry services Equipment mobilisation Availability of backup Oilfield skill pool small Nearest sea port is Mombasa 1200 kms to Lake Albert Road conditions Border congestion Weather Rain, storms, lightning Tullow Oil plc Uganda Analyst Visit October 2007 Slide 2

3 Lake Albert Local Challenges Physical Setting Local infrastructure Escarpment descent Lake operations Environmental sensitivities EHS standards Local communities Tullow Oil plc Uganda Analyst Visit October 2007 Slide 3

4 Local Challenges - Physical Setting Lake Albert 140km SW-NE and 40 km wide Max water depth 60 metres Albert Nile Victoria Nile D.R.C. Butiaba Lake Albert Kaiso-Tonya UGANDA Semliki River Kingfisher-1 well Tullow Oil plc Uganda Analyst Visit October 2007 Slide 4

5 Local Challenges Local Infrastructure Local Airstrips Kyehoro, Waraga Suitable for light aircraft Access roads Clear back topsoil for re-use Fill with laterite and compact Build culverts/bridges Drilling pad Clear back topsoil Fill with laterite and compact Additional foundations for rig support Steel cellar box Flare pit Concrete bowl Fencing/shuttering Tullow Oil plc Uganda Analyst Visit October 2007 Slide 5

6 Local Challenges - Upgrading the escarpment road Escarpment top 1000 ft above operational area Was unsuitable for heavy vehicles Narrow Steep New route cut with improved grade and width Old road Tullow Oil plc Uganda Analyst Visit October 2007 Slide 6

7 Local Challenges - Support services established Camps Senior - Nzizi-1 Junior - Mputa-1 Seismic Kyehoro, Bulissa Security DSC Rig - Kisinja Medical Paramedics at all main camps Shared ambulances Support Doctor in Kampala Nzizi-1 Camp Nzizi-1 Camp Air Transport Cessna Caravan full time Back-up Islander Materials Pipe yards Magazines Explosives magazine at Bulissa Main airstrip at Kaiso Tullow Oil plc Uganda Analyst Visit October 2007 Slide 7

8 Local Challenges Offshore Operations Activities Lakebed survey 3D seismic Offshore drilling (next year) Shortage of vessels Security DRC Border uncertainty Uncontrolled elements Fishing / trading traffic Planning Training Swimming Boat handling S/E plan implementation Weather Generally benign Unpredictable squalls Tullow Oil plc Uganda Analyst Visit October 2007 Slide 8

9 Local Challenges - Environmental sensitivities KT Operational area Kabwoya wildlife reserve Flora, fauna, animals KT community wildlife reserve People, animals Environmental impact assessments General area / specific location depending on sensitivity International and local consultants Specialist studies (some firsts in area) of potential impacts: Terrestrial Aquatic Socio-economic Tradition/culture Others (e.g. air, noise, visual) Approval by NEMA Environmental management plans Tullow Oil plc Uganda Analyst Visit October 2007 Slide 9

10 Local Challenges EHS Culture & Standards Getting the message across EHS culture Communicating Tullow aspirations Change from Hardman to Tullow Bringing contractors on board Inducting local personnel Environmental challenges Waste generated Land surface Spillage Health challenges Malaria Cholera Safety challenges Vehicles Lifting equipment Spraying for mosquitos Rig emergency drill Tullow Oil plc Uganda Analyst Visit October 2007 Slide 10

11 Local Challenges Local Communities Relatively undeveloped area Traditionally fishing, cattle, small farms Early signs of development Mobile phones Fuel stations Needs Health Education Employment Tullow CSR programmes Tullow Oil plc Uganda Analyst Visit October 2007 Slide 11

12 Mobilising a Rig Rig Selection Past & present rigs EagleDrill HS150 Small Complicated Move time - 25 days Dafora F200 Medium capacity Old rig Move time 15 days Nabors 221 Medium capacity Industry standard Move time 10 days EagleDrill Future rigs Light rig for Buitaba Small Industry standard Move time 3 days Offshore rig 60-metre max. water depth Barge or jack-up options Tender process ongoing Nabors Dafora Tullow Oil plc Uganda Analyst Visit October 2007 Slide 12

13 Mobilising a Rig moving to site Some roads are better than others Tullow Oil plc Uganda Analyst Visit October 2007 Slide 13

14 Mobilising a Rig - Rigging up Mobility Choice of rig Cranes Number of loads Dafora F-200 Trucking Numbers of trucks Condition of roads Erection Crane assisted Self-erect Tullow Oil plc Uganda Analyst Visit October 2007 Slide 14

15 Mobilising a Rig - Wells locations Waraga-1 N Gassa-1A Mputa-2 Mputa-1 Mputa-4 Pad Nzizi-1 Mputa-3 Nzizi-2 North Tullow Oil plc Uganda Analyst Visit October 2007 Slide 15

16 Drilling success Mputa-1, Jan 2006, 1195m Tested 1,040 BOPD, suspended Waraga-1, Jan-Mar 2006, 2010m, Tested 11,873 BOPD, suspended Mputa-2, May 2006, 1344m Oil discovery, suspended Nzizi-1, November 2006, 1065m, Oil shows, P&A Nzizi-2, November 2006, 982m, Tested 12.5 MMSCF/d, suspended Mputa-3, August 2007, Tested 1,600 BOPD, suspended Mputa-4, September 2007, be tested To Tullow Oil plc Uganda Analyst Visit October 2007 Slide 16

17 Cleaner testing of the wells Conventional burner Waraga-1, 2006 Green burner Mputa-3, 2007 Tullow Oil plc Uganda Analyst Visit October 2007 Slide 17

18 Rehabilitate well site Suspend well bore Bridge plugs Cement plugs Waste fluids In-situ neutralisation Trucking to GOU disposal destination Break up & remove flare and mud pits concrete lining Mputa-1 Return top soil Replant with local grasses Fence off wellhead Waraga-1 Tullow Oil plc Uganda Analyst Visit October 2007 Slide 18

19 Summary Effective operations Environment sustained Wildlife unaffected Tullow Oil plc Uganda Analyst Visit October 2007 Slide 19

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