APAC Market

Asia Pacific Oil & Gas Upstream
Sector Overview and Developments
9836-14
November 2010
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9836-14 2
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9836-14 3
Table of Contents
Slide
Overview of the Upstream Oil & Gas Sector 8
1 Introduction to the Upstream Sector 9
Proved Oil & Gas Reserves in the Asia Pacific Region 11
Offshore Reserves in the Asia Pacific Region 12
Upstream Sector China 13
Upstream Sector India 14
Upstream Sector ASEAN 15
Upstream Sector Australia 16
Upstream Sector New Zealand 18
Upstream Sector Japan 19
Upstream Developments in the Asia Pacific Region 22
2 China 23
India 24
Malaysia 29
Indonesia 30
Thailand 33
Cambodia and Myanmar 34
Vietnam 35
Australia and New Zealand 39
9836-14 4
Table of Contents (Contd)
Slide
Subsea Sector 43
3 Introduction 44
Subsea Equipment Market Structure 45
Subsea Equipment Market Value Chain 46
Asia Pacific Subsea Sector Key Fields 47
Exploration & Development Trends Asia Pacific Total Subsea Expenditure 48
Exploration & Development Trends Asia Pacific Subsea Drilling and Completion Expenditure 49
Exploration & Development Trends Asia Pacific Subsea Equipment Expenditure 50
Exploration & Development Trends Asia Pacific Subsea Pipeline Expenditure 51
Exploration & Development Trends Asia Pacific Control Lines Expenditure 52
ROVs and FPSOs Markets 53
4
Global ROV Market 54
Global ROV Expenditure and ROV Units 55
FPSO Markets Introduction 56
FPSO Markets Overview 57
FPSO Markets Asia Pacific Market 58
FPSO Markets Market Drivers 60
FPSO Installations Forecast 61
FPSO Installation Capital Expenditure 62
9836-14 5
Slide
ROVs and FPSOs Markets (Contd)
4
FPSO Innovation 63
Prospective FPSO Projects in Asia Pacific 64
Upstream Oil & Gas Value Chain Mapping Companies 65
5 Activities in the Upstream Sector Value Chain 66
Companies along the Upstream Sector Value Chain 67
Overview of Asia Pacific Oil Field Drilling Equipment & Services 74
6 Introduction to Drilling 75
Jack-ups, Drillships, Semi-submersibles and Tender Rigs 76
Offshore Outlook 78
Jack-up Deployment in Asia Pacific by Key Countries 79
Jack-up Deployment in Asia Pacific by Owners 80
Jack-up Manufacturers 81
Drillship Deployment in Asia Pacific by Key Countries 82
Drillship Deployment in Asia Pacific by Owners 83
Drillship Manufacturers 84
Semi-submersible Deployment in Asia Pacific by Key Countries 85
Semi-submersible Deployment in Asia Pacific by Owners 86
Semi-submersible Manufacturers 87
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Slide
Overview of Asia Pacific Oil Field Drilling Equipment & Services (Contd)
6 Tender Rigs Deployment in Asia Pacific by Key Countries 88
Tender Rigs Deployment in Asia Pacific by Owners 89
Tender Rigs Manufacturers 90
Oil Field Drilling Equipment & Services Providers 91
Oil Field Drilling Equipment & Services Providers - Company Profiles 92
APPENDIX 103
7
Abbreviations/Terminology 104
Brief Profiles of Oil Companies 105
8 ABOUT FROST & SULLIVAN 123
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1
OVERVIEW OF THE UPSTREAM OIL & GAS SECTOR
8
1
Introduction to the Upstream Sector
The upstream oil and gas industry is involved in the exploration and production (E&P) of oil or gas from onshore or
offshore oil or gas fields. The key activities include exploration for oil & gas, appraisal of the oil & gas field, development,
production, operations and maintenance, and then abandonment.
Exploration Phase Development Phase Production Phase Abandonment Phase
Products Crude oil and

Natural Gas
Condensate
Crude oil, condensate and natural gas are extracted during the
production phase.
Source: Compiled by Frost & Sullivan
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1
Introduction to the Upstream Sector (Contd)
Exploration and appraisal involves interpreting seismic data for potential hydrocarbon deposits. Test wells are drilled
for further evaluation / assessment. The value of the reserves is estimated and if the field is found feasible, activities
shift to the development phase.
In the development stage, structures for production of oil & gas are constructed. Associated facilities are also built. All
this involves detailed engineering and project management. The duration of exploration, appraisal and development
phase may last around 5 to 7 years.
The hydrocarbons are extracted during the production phase. Operations and maintenance strategies are formulated
to meet production targets. Maintenance ensures most optimal production capability of a platform by reducing facilities
un-planned shutdown or un-planned reduction in producing capabilities. In retrofitting, the platforms are modified and
upgraded to provide for increase in production capability, expand capacity and increase the useful lives of the
platforms.
As the oil producing asset starts to age, additional maintenance, modifications and upgrade-works are carried out to
prolong the useful life of the asset and restore or expand the capacity. The typical duration of the production phase is
30 to 35 years.
Once the oil well reaches a stage where it can no longer produce hydrocarbons cost effectively, it is plugged and the
structures are dismantled.
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1
Proved Oil & Gas Reserves in the Asia Pacific Region (End 2009)
China: Oil 14.8 tmB

Gas 2.46 TCM
Includes both offshore and
onshore reserves
Pakistan: Gas 0.91 TCM
Bangladesh : Oil 0.44 tmB Myanmar: Oil 0.5 tmB
Gas 0.36 TCM Gas 0.57 TCM
India: Oil 5.8 tmB Vietnam: Oil 4.5 tmB

Gas 1.12 TCM Thailand: Oil 0.5 tmB Gas 0.68 TCM
Gas 0.36 TCM
Brunei: Oil 1.1 tmB
Malaysia: Oil 5.5 tmB Gas 0.35 TCM
Gas 2.38 TCM
PNG: Gas 0.44 TCM
Indonesia: Oil 4.4 tmB
Gas 3.18 TCM
Australia: Oil 4.2 tmB
Gas 3.08 TCM
1TCM=35.3TCF
TOTAL: Oil 42.2 Thousand Million Barrels
Gas 16.24 Trillion Cubic Meters
Source: BP
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1
Offshore Reserves in the Asia Pacific Region
The Asia Pacific (APAC) is

emerging as a significant
deepwater region
M9 Field,
Gulf of The APAC offshore has more gas
Martaban Bohai Bay 7.35
Bboe reserves than oil
1.76 TCF
Shwe Gas Phu Khanh

Field Basin
8 TCF 2.48Bboe
Gulf of Kikeh 700 mmboe

KG Basin Thailand
6.76 TCF Arthit 1.9TCF Masela 10 TCF
Bonaparte
Offshore Sabah (10 29.5 TCF
TCF) & Sarawak
(45 TCF) 4.2Bboe
Browse 30.3 TCF
proven; 8Bboe
potential
Gippsland
East Kalimantan 10.65 TCF
47 TCF
Makassar Strait Carnarvon
6 TCF 95.5 TCF Source: Compiled by Frost & Sullivan
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1
Upstream Sector - China
Around 85.0 percent of Chinese oil production capacity is located onshore. Although offshore exploration & production
(E&P) activities have increased substantially in recent years, Chinas interior provinces, particularly in the northwests
Xinjiang Province, have also received significant attention.
The onshore Junggar, Turpan-Hami, and Ordos Basins have all been the site of increasing E&P work, although the
Tarim Basin in northwestern Chinas Xinjiang Uygur Autonomous Region has been the main focus of new onshore oil
prospects. Reserve estimates for Tarim vary widely, with some estimates as high as 78 billion barrels of total in-place oil
reserves.
The basin is home to Sinopecs Tahe oil field, with an estimated 996 million tons of in-place oil and gas reserves after a
recent addition of 135 million tons in 2008.
Chinese policymakers and state-owned oil companies have embarked on a multi-pronged approach to improve oil
security by purchasing equity oil stakes abroad, diversifying suppliers, enacting new policies to lower demand, investing
in energy substitutes, building strategic oil reserves, and maximizing domestic production.
Accordingly, Chinas emerging oil companies are being recognized as significant players in international exploration and
production , oilfield services, and liquefied natural gas (LNG) projects worldwide.
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1
Upstream Sector - India
India has 26 sedimentary basins spanning 3.14 million sq. km of which 1.35 million sq. km. is deep water (more than
200m depth). A substantial part is un-explored or poorly explored, with a well density of less than 1 well per 250 sq km.
Most of Indias crude oil reserves are located offshore, in the west of the country, and onshore in the northeast.
Substantial reserves, however, are located offshore in the Bay of Bengal and in Rajasthan state.
Indias largest oil field is the offshore Mumbai High field, located north-west of Mumbai and operated by ONGC. Another
of Indias large oil fields is the Krishna-Godavari basin, located in the Bay of Bengal. Block D6 in the Krishna-Godavari
basin, operated by Reliance Industries, began oil production in September 2008.
Till late eighties, the entire upstream activity was concentrated in ONGC & OIL the two National Oil Companies
(NOCs) , and the acreage was given on a nomination basis. In 1990s some unexplored as well as discovered areas
were opened for international competitive bidding, and PSC regime was experimented with. This led to pronouncement
of New Exploration & Licensing Policy (NELP) in 1998. Since then the practice of nomination has been stopped, and
the entire acreage is given through competitive bidding under NELP rounds.
The primary mechanism through which the Indian government has promoted new E&P projects has been the NELP
framework. The latest round of auctions, NELP VIII, was launched in April 2009 and attracted nearly $1.1 billion in
investment. India currently plans to launch the NELP IX bidding round in the third quarter of 2010.
Domestic exploration and drilling activities are at an all time high. This has increased the demand for drilling services.
The domestic supply of drilling rigs is dependent on the global supply and demand. The demand from India caused a
shortage of drilling rigs in the region in 2008.
Opportunities exist for both domestic and foreign companies to explore and develop oil & gas resources.
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1
Upstream Sector - ASEAN
Hydrocarbon reserves in the ASEAN region have steadily increased in the last 5 years with significant discoveries being
made in the deepwater areas.
Exploration drilling in ASEAN remains high, indicating a positive perception towards ASEAN upstream potential
amongst the international oil companies.
Success rate and discovery size in ASEAN have been outperforming worldwide trends, indicating that great potential
still exists in the region. The size of new discoveries in maturing plays is getting smaller. To reverse the declining trend
of large discoveries, new play exploration is crucial.
The ASEAN region is perceived as a relatively mature region for hydrocarbon exploration though there exists many
unexplored areas in the region.
Significant opportunities exist in deepwater and also small (marginal) fields development.
Indonesia, Malaysia, Brunei are established players in the upstream oil & gas sector. Thailand and Vietnam are
emerging as strong areas for upstream activities. Philippines has some upstream activity. Cambodia has been in the
news for developing its offshore assets.
The ASEAN countries co-operate to develop hydrocarbon resources. Some of the co-operation area are:
Malaysia Thailand Joint Development Area
PM3 Commercial Arrangement Area (Malaysia Vietnam)
Field Unitisation (Malaysia Brunei)
Tripartite Agreement (Malaysia-Vietnam-Indonesia)
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1
Upstream Sector - Australia
Australia has 29 trillion cubic feet of proven natural gas reserves, as of January 2009 . A majority of these natural gas
reserves are located off the western coast in the Carnarvon Basin. The Bonaparte Basin off the northern coast, the
Cooper/Eromanga Basin in central Australia and the Bass/Gippsland Basin offshore southern Australia are other
important natural gas fields. Apart from these, there are smaller fields off the southern coast and central regions.
Australia has proven oil reserves of 1.6 billion barrels.
The petroleum industry is dominated by large multinational companies. Most petroleum projects are high investment
projects. Also vertically-integrated oil & gas companies have many advantages.
The Australian petroleum industry has the established presence of large global oil & gas firms such as ExxonMobil, BP,
Shell, Chevron, Talisman Energy and ConocoPhillips.
The industry also has domestic companies that operate on a global scale such as BHP Billiton, Woodside Petroleum
and Santos
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1
Upstream Sector Australia (Contd...)
Table of Proven Reserves; Australia (2009)
Crude Oil Condensate Natural Gas

Basin (Million Barrels) (Million Barrels) Tcf
Adavale 0.00 0.00 0.00
Amadeus 3.89 1.91 0.30
Bass 0.00 11.81 0.22
Bonaparte 72.85 120.41 2.67
Bowen 6.47 1.89 0.39
Canning 0.00 0.00 0.00
Carnarvon 521.18 453.21 18.52
Cooper 15.64 15.00 0.69
Eromanga 39.59 0.40 0.01
Gippsland 209.09 92.09 5.14
Gunnedah 0.00 0.00 0.01
Otway 0.00 7.65 0.93
Perth 12.29 0.03 0.01
Surat 0.55 0.13 0.03
Total 881.55 704.53 28.92
The above comprises current reserves of those fields which have been declared commercial. It includes both
proved and probable reserves.
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1
Upstream Sector - New Zealand
As at 1 January 2010, New Zealands reported oil reserves stood at 171.4 million barrels (mmbbls), down from 181.8
million barrels the previous year, while gas reserves stood at 2,076 PJs, up from 1,975 PJs the previous year. 39% of
total oil reserves come from the Maari and Tui fields which do not provide any gas to the local market. Half of reported
gas reserves lie in the Pohokura field, with a further 22% coming from the Maui and Kapuni fields, the historic
mainstays of New Zealand gas supply. The recently developed fields Kupe and Turangi provide for a further 19% of
reported gas reserves.
The costs of exploration in New Zealand have increased. With discoveries dwindling, investment in exploration is
becoming more risky.
Some of the companies operating in New Zealand are Horizon Oil, Cue Energy, Shell, BP, Mobil Exxon, OMV, Todd
corporation, Greymouth petroleum, AWE New Zealand Pty Ltd.
American company Anadarko and Brazilian Petrobras are also involved in exploration activities in New Zealand.
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Upstream Sector - Japan
Japan Reserves: Oil 40 to 50 mB Japan has very limited domestic oil & gas reserves
Gas 750 to 800 Bcf and has to rely almost totally on imports to meet its
consumption needs.
Japan is estimated to have around 40 to 50 million
Japans limited domestic oil reserves and production,
barrels of proven oil reserves and around 750 to 800
are concentrated primarily along the countrys
billion cubic feet (Bcf) of proven natural gas reserves.
western coastline
Yufutsu Oil-Gas Field
Sarukawa Oil Field
Yurihara Oil & Gas Field Ayukawa Oil & Gas Field Japans largest natural gas field Yufutsu, produces
approximately 40 million cubic feet per day (Mmcf/d)
Higashi -Niigata Gas Field and is managed by Japex.
Iwafune-oki Oil-Gas Field
The Iwafune-Oki field, operated by Japex and
Yoshii Gas Field Mitsubishi, produces around 6 Mmcf/d.
Katakai Gas Field
The East China Sea holds substantial natural gas reserves and is one possible site of future offshore development by
Japan.
However, development of hydrocarbon reserves in the region has been hindered by disagreements between Japan and
Claims overlap China over the demarcation of their maritime boundary.
with China for Japan has objected to Chinas exploration and production activities in the Chunxiao natural gas field (also known as the
oil & gas fields Shirakaba field in Japan), which is three miles west of the median line in the East China Sea, but which Japan contends
in East China may be tapping natural gas reserves that extend east of the median line. China does not recognize this median line, as
Sea it believes it falls in its exclusive economic zone.
The Japanese and Chinese governments participated in several rounds of bilateral negotiations aimed at resolving the
impasse, and in June 2008, the two countries reached an agreement on the joint development of the Chunxiao field.
The cooperative agreement broadly expressed joint development plans for oil and gas fields in the East China Sea and
specifically invites Japan to take a stake in the Chunxiao project and to jointly develop the Longjing field.
9836-14 19
1
Upstream Sector - Japan (Contd...)
Overseas Investment
In an effort to mitigate the countrys lack of domestic oil resources, Japanese oil companies have sought participation in
exploration and production projects overseas. The governments 2006 energy strategy plan urges Japanese companies
to increase energy exploration and development projects around the world to secure a stable supply of oil and natural
gas. Furthermore, the plan contains the goal of importing 40 percent of the countrys oil requirements from Japanese-
owned concessions by 2030, up from the current level of about 15 percent.
Japans overseas oil projects are primarily located in the Middle East and Southeast Asia.
Apart from Inpex, Japanese oil companies involved in exploration and production projects overseas include: Cosmo
Oil, Idemitsu Kosan Co. Ltd., Japan Energy Development Corporation, Japex, Mitsubishi, Mitsui, Nippon Oil, and
others.
Many of these companies are involved in small-scale projects that were originally set up by JNOC. However, many of
the high profile upstream projects that Japanese firms have pursued abroad have faced obstacles and other setbacks.
9836-14 20
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Upstream Sector - Japan (Contd...)
Although Japan is not a major oil producing country, it has a robust oil sector, comprised of various state-run, private,
and foreign companies. Although the country is open to foreign investment in the energy sector, government restrictions
and regulations have historically limited the involvement of international oil companies in Japan.
Until 2004, Japans oil sector was dominated by the Japan National Oil Corporation (JNOC), which was formed by
the Japanese government in 1967 and charged with leading oil exploration and production domestically and overseas.
In November 2001, the Japanese government announced the planned breakup of JNOC. The move was part of the
governments wider reform agenda, designed to spin off JNOCs profitable business units into new companies and
introduce greater competition into Japans energy sector.
Many of JNOCs activities were spun off into the Japan Oil, Gas and Metals National Corporation (JOGMEC) in
2004. JOGMEC is a state-run enterprise charged with aiding Japanese companies involved in exploration and
production overseas and the promotion of commodity stockpiling at home. Some of JNOCs most successful business
units formed new companies. Two of the largest to be formed through this process are Inpex, now Japans largest oil
company, and the Japan Petroleum Exploration Co., Ltd. (Japex). Both companies carried out successful initial
public offerings (IPOs) on the Tokyo Stock Exchange, although the Japanese government maintains an equity stake in
each firm.
As in the oil industry, Inpex and the companies created from the former Japan National Oil Company are the primary
participants in Japans upstream natural gas sector. Besides Inpex, various other Japanese companies, including
Mitsubishi and Mitsui, are actively involved in natural gas exploration and production efforts, primarily overseas.
9836-14 21
2 UPSTREAM DEVELOPMENTS IN THE ASIA PACIFIC REGION
EXPLORATION & DEVELOPMENT TRENDS:

NEW DISCOVERIES
PROJECT DEVELOPMENTS
INVESTMENT AND OFFSHORE ACTIVITY
22
2
China
Feb 2010: Husky Oil China has made its third significant gas discovery on Block 29/26 in the
South China Sea.
The Liuhua 29-1 exploration well was drilled 43 kilometers northeast of the Liwan 3-1 Gas
Field and 20 kilometers northeast of the LH 34-2 Gas Field in a water depth of 723 meters.
The new Liuhua 29-1 field, which will be appraised later this year, will utilize the Liwan field
infrastructure.
The West Hercules deepwater drilling rig is currently preparing to spud the first delineation
well on the Liuhua 34-2 discovery.
April 2010: The Penglai (PL) 9-1 well, at a depth of about 29 meters, yielded 540 barrels of crude oil a day during test
drilling.
May 2010: SINOPEC has made a new oil discovery in its flagship Shengli oil field in a test drilling conducted at the
beginning of May, the company-run news web site reported on Thursday. According to the report, the discovery was made
in Chengdong-11 oil well, which is located in Binhai Area of Shengli oil field, registering a daily crude oil output of 52.13
cubic meters during the test drill in early May. The oil field, which ranks China's second largest crude oil producing oil
field, also reported a new oil find in Luo-68 oil well in Bonan Area in April 2010.
But no details are available to ascertain whether the discoveries would be significant enough to prevent the oil field from
further production decline. After 45 years of development, Shengli oil field has lost momentum for output increase in
recent years. Its annual output maintained at about 27 million metric tonnes in the past five years.
9836-14 23
2
China (Contd)
Aug 2010: Roc Oil (China) and its partners in the Beibu Gulf project joint venture
have signed a Supplemental Development Agreement (SDA) with CNOOC for an
oilfield program offshore China.
The SDA, signed in Beijing last week, concerns development of the WZ 6-12 and
WZ 12-8 West fields in the Beibu Gulf. It outlines the commercial terms agreed in
May, and arrangements regarding facility integration and sharing of services and
personnel. The SDA also confirms that CNOOC will take a 51% participating
interest in the project.
According to Roc Oil, the development will use existing CNOOC-operated
Liwan 3-1-1 facilities to host production from the two fields. The commercial terms cover tariff
Pearl River Mouth Basin charges for use of the CNOOC pipeline and terminal facilities, and other cost-
Water Depth Average 1,300m sharing arrangements.
First Gas Planned for 2012/13 CNOOC will operate the new project's facilities on behalf of the joint venture and
Reserves estimated at 4-6Tcf will have responsibility for engineering and construction. ROC staff will be
Operator: Husky Energy seconded to a joint project team.
Partner: China National Offshore Oil
Corporation (up to 51 per cent Documentation for the Overall Development Plan (ODP) has also been
working interest) submitted to CNOOC for review and approval. Once this stage is passed, the
Contractors: China Oilfield Services joint venture will proceed to its Final Investment Decision and submit the ODP to
(3D seismic survey), Seadrill Offshore the Chinese Government.
AS (semi-submersible drill rig) Roc expects first oil production during the first half of 2012. The other partners
are Horizon and Petsec Petroleum.
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2
India
70% of offshore acreage is in deepwater
MA-D6
Bay of Bengal
Area8,100km
BlockKG-DWN-98/l (KG-D6)
Basin Krishna-Godavari basin
Water Depth700m (2,297ft) to 1,700m (5,577ft)
Total reserves about 14,000bcf of gas and about
140m barrels of oil
Total investment About $10bn
9836-14 25
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India (Contd)
KG-D6: As part of appraisal activities of 4 discoveries in the southern part of the KG-D6 block, RIL
successfully drilled 4 appraisal wells in FY 2009-10. The commerciality of these discoveries has been
submitted.
In the KG-D6 block, further to the submission of the development plan in 2008 for the 9 satellite gas
discoveries, an optimised development plan for prioritising 4 satellite gas discoveries was submitted to
the Directorate General of Hydrocarbons (DGH) in December 2009.
An integrated development plan for all gas discoveries in the block KG-D6 is being conceptualised to
maximise capital efficiency and accelerate monetisation.
Reliance Industries made four discoveries during the fiscal year 2009-2010 which are as follows:
* Well R1 in the KG-V-D3 block
* Well AA1, BF1 and AH1 in on-land CB-10 block
The Company has also submitted a proposal for commerciality for the following:
* Discoveries D28, D37 and D38 in KG-III-5 block
* Discovery D35 in CY-D5 block
* Discoveries D32 and D40 in NEC-25 block
* For discoveries D20, D30, D31, D34 in KG-D6 block
RIL has successfully drilled 4 appraisal wells in the southern and deeper parts of the NEC-25 block. Results of these are
being incorporated to generate an integrated development plan for all discoveries to maximise capital efficiency. Appraisal
activities are currently underway in KG-D4, CY-D5, KG-III-5, KG-III-6, KG-V-D3 and GS-01 blocks.

9836-14 26
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India (Contd)
Aug 2010: Cairn India announced an oil and gas discovery in an onland KG basin block.
Cairn made the discovery in the second well drilled in the block KG-ONN-2003/1 in Krishna Godavari basin.
The well flowed 75 barrels per day of oil and 0.27 million cubic feet per day of gas, Cairn said, adding that the
commercial potential of the discovery is being ascertained.
Cairn had won the block KG-ONN-2003/1 in the fifth round of bidding of New Exploration Licensing Round (NELP).
Vedanta Resources is acquiring a majority stake in Cairn India.
Aug 2010: British oil exploration firm Hardy Oil and Gas plc(HAOG.L) said on Tuesday it made another gas discovery in the Krishna
Godavari basin in India, sending its shares up as much as 11 percent.
This is the fourth successive gas discovery in the exploration block KG-DWN-2003/1 (D3), the India-focused explorer said in a
statement.
Hardy Oil said the potential commerciality of the discovery was being ascertained through more data gathering and analysis.
The Krishna Godavari basin is an emerging world class basin for India. Further exploration drilling is planned in this area and
Reliance Petroleum looks forward to continuing to participate in unlocking of the basin's exceptional energy potential.
Oil and Natural Gas Corp (ONGC) added 83 million tonnes of oil and gas reserves for Fiscal 2009-2010.
The reserve had gone up due to Kasomarigaon discovery in Assam, South Mahadevpatnam and Pennugonda in KG onland, GK-28-1
in Kutch offshore and PER-1 in Mumbai offshore.
Kasomarigaon and Pennugonda discoveries have already been put on production.
ONGC made three discoveries in April 2010 -- oil and gas in Karjan block in Gujarat, oil in Kutch offshore block and oil in an
Ahmedabad block.
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India (Contd)
Aban Offshore has signed a contract with Cairn Energy India for the deployment of the jack-up rig Aban II in Ravva
block, located offshore east coast of India, for a 5 firm well plus 2 optional well programmed. Cairn Energy India Pty
Ltd in Joint Venture with ONGC, Videocon and Ravva Oil operates the Ravva block. The estimated revenues from
the firm period of the Contract (with an estimated duration of 150 days) is USD 15 million. The deployment is likely
to commence during the fourth quarter of calendar year 2010.
Roc Oil (China) and its partners in the Beibu Gulf project joint venture have signed a Supplemental Development Agreement (SDA)
with CNOOC for an oilfield program offshore China.
The SDA, signed in Beijing last week, concerns development of the WZ 6-12 and WZ 12-8 West fields in the Beibu Gulf. It outlines
the commercial terms agreed in May, and arrangements regarding facility integration and sharing of services and personnel. The SDA
also confirms that CNOOC will take a 51% participating interest in the project.
According to Roc Oil, the development will use existing CNOOC-operated facilities to host production from the two fields. The
commercial terms cover tariff charges for use of the CNOOC pipeline and terminal facilities, and other cost-sharing arrangements.
CNOOC will operate the new project's facilities on behalf of the joint venture and will have responsibility for engineering and
construction. ROC staff will be seconded to a joint project team.
Documentation for the Overall Development Plan (ODP) has also been submitted to CNOOC for review and approval. Once this
stage is passed, the joint venture will proceed to its Final Investment Decision and submit the ODP to the Chinese Government.
Roc expects first oil production during the first half of 2012. The other partners are Horizon and Petsec Petroleum.
9836-14 28
2
Malaysia
Deepwater/Ultra Deepwater to contribute major portion of undiscovered resources 10 billion boe
Undiscovered potential: 65% of oil reserves and 45% of gas reserves in deepwater
Jangas
D30 field off Malaysia
Recoverable: 81mmboe
block SK305
Depth: >1000m
Aug 2010: Producing 4730 barrels a day.
Onstream: 2012/2013
Operator: Petrovietnam 30%, Petronas
Operator: Murphy
Carigali 40% and Pertamina 30%
Kebabangan
Recoverable: 2.2tscf Malikai
Depth: >200m Recoverable: 108mboe
Onstream: 2012/2013 Depth: 480m
Operator: KPOC Onstream: 2011/2012
Operator: Shell
Kamunsu Gumusut/Kakap
Recoverable: 2.2tscf Recoverable: 620mboe
Depth: >1000m Depth: 1,100m Pisangan
Onstream: 2014/2015 Onstream: 2011/2012 Recoverable: 56mmboe
Operator: KPOC Operator: Shell Depth: >1000m
Onstream: 2013/2014
Operator: Shell
Ubah Crest
Recoverable: 215mmboe
Depth: >1000m
Onstream: 2013/2014
Operator: Shell Source: PETRONAS; Compiled by Frost & Sullivan
9836-14 29
2
Indonesia
Deepwater Potential: Major Gas discoveries in Kutei

basin; exploration in the Tarakan and Papalang basin.
Thrust from Government for faster development of gas

projects for meeting domestic and export gas demand.
East Kalimantan
Masela Block
10 TCF Reserves at depth of
4000 m.
Inpex to invest $14.5 billion.
Proposal for floating LNG plant
with production start-up in 2016.
Makassar Strait
Gehem, Gendalo, Gandang, Maha and Bangka fields.
Chevron committed to developing East Kalimantan
deepwater fields, Gehem and Gendalo.
Source: Planning Dept, Govt of Indonesia; Compiled by Frost & Sullivan
9836-14 30
2
Indonesia (Contd)
Historically, discovery rates in Indonesia have been high both

onshore and offshore, with the success ratio, including exploration
and appraisal wells, being close to 50%. By far, the most important
onshore fields are the two giant oil fields of Central Sumatra, Duri,
and Minas. Offshore, the largest oil fields are the "B", "E", Cinta,
and Widuri fields off Northwest Java, and the giant Attaka and
Handil oil fields, off East Kalimantan. Recently the deepwater oil
plays became prominent in the Makassar Strait with a series of
successes in stacked distal Miocene sands.
Indonesias two largest oil fields Minas and Duri are located along the eastern coast in Sumatra and operated by Chevron.
However, the Minas and Duri fields are mature and production at these locations has been on the decline. Various oil
exploration projects are underway in Indonesia. However, to date, these projects have not brought sufficient new oil
resources onstream to offset the declining production levels at older fields.
BP Migas and the Indonesian government have introduced policies aimed at increasing investment in the countrys
upstream sector. BP Migas set up various incentive programs for firms to develop marginal oil resources throughout the
country that would not otherwise be attractive to international companies.
9836-14 31
2
Indonesia (Contd)
2010: BP MIGAS announced that they are starting 5 projects that will produce a total of 25,000 barrels of oil per day,
745 mm cf of gas per day, and 6000 barrels of LPG per day. The five projects are Tunu Phase 11 and 12 of the
contractor Total E&P Indonesie in Mahakam Delta, East Kalimantan. The two projects have been projected to produce
630mm cfpd of gas with an investment of $663 million. Then other projects include Seturian Surface Facilities in East
Kalimantan being managed by Chevron Indonesia with a designed gas output of 35 mm cfpd and an investment of
$22.2million. Oyong Phase 2 in the Madura Strait and Pasuruan, East Java, owned by Santos has started production.
With an investment of $58million, Santos expects to produce 80 mm cfd gas. The Oil Treating Facilities and LNG
Facilities being managed by Hess in Gresnik, East Java worth $165.7million is expected to produce 25,000bpd and
6000 barrels of LPG per day.
Aug 2010: In the Natuna Sea block A offshore Indonesia, Premier announced that Gajah Baru project is progressing
well. This is the first of various fields which will be developed to supply additional gas to Singapore and Batam under
three new gas sales agreements signed in 2008.
Fabrication continues at two yards in Batam of the wellhead platform and the central processing platform. By end-July,
the overall Engineering, Procurement, Construction, and Installation contract was over 63% complete. The wellhead
platform currently is being installed, with development drilling due to start in September. Premier adds that the project
remains on track to deliver first gas in October 2011.
With demand for gas in the area increasing, Premier has drawn up a five-year exploration plan for the block, with a
prospect inventory review in progress to determine the remaining risked resource potential. Two exploration wells
could be drilled next spring on the Anoa Deep and Biawak Besar prospects.
9836-14 32
2
Thailand
Arthit (Blocks Coastal Energy has approval for

B15A & B16A) development of the Songkhla field
in the Gulf of Thailand.
Bongkot North field in the Gulf
of Thailand is entering another The approval also covers several
development phase. Production surrounding satellite features. The
planned in 2010. extended production area is
significant in that it enables the
company to fully exploit the
prospects surrounding the primary
Songkhla development.
Chevron Corp. and its partners
will construct the Platong Gas II
natural gas project in the Gulf of
Thailand.
Total development cost of the
field is $3.1 billion with startup Malaysia Thailand Joint Development Area
Ongoing projects from the Malaysia-Thailand Joint Development Area
scheduled for 1Q 2011.
(JDA), located in the lower part of the Gulf of Thailand, will increase
natural gas supplies to Thailand. The area is divided into three blocks A-
The Platong Gas II
development, located in shallow 18, B-17 and C-19, and is administered by the Malaysia-Thailand Joint
water, 120 mi (200 km) Authority (MTJA), with each country owning 50 percent of the JDAs
offshore, is designed to add 420 hydrocarbon resources. Sources estimate that the JDA holds 9.5 Tcf of
MMcf/d of natural gas proved plus probable natural gas reserves, and some analysts speculate
that the area could hold as much as 24 Tcf total inplace reserves.
processing capacity.
Source: News reports; PTT PLC; Compiled by Frost & Sullivan
9836-14 33
2
Cambodia and Myanmar
Cambodia Potential Reserves: 2 Bboe
Chevron to delay development of Cambodia field due to weak oil prices. Chevron will delay the development
of Block A offshore southwest Cambodia due to weak oil prices, according to the countrys Secretary General
of Economy and Finance.
Chevron has completed exploration work on the acreage and could kick off first production in 2012 if it started
development work now. Production will most likely start in 2014 or 2015 if Chevron decided to wait until the
global economy recovers fully.
As the demand for oil & gas soars, Myanmar has been
Shwe Gas Field trying to catch up by exploring new areas and taking a
Myanmar closer look at old fields. The government is also working
Reserves: 8 TCF. together with foreign oil companies to increase production
Gas Supply to China in both oil & gas. The development of the oil & gas sector in
through pipeline. Myanmar is very much a work in progress and many
The project is expected to projects are in the pipeline. In September 2009, Daewoo
start supplying gas in 2013. International company announced that it would invest
$1.7billion in gas exploration and production projects in
western Myanmar, in which two Indian companies have a
combined stake of 25 percent. The money is to be used for
the development of infrastructure at gas fields Shwe and
Shew Pyu in Block A-1 and gas field Mya in Block A-3,
from where China would buy the gas for 30 years. Official
statistics reveal that foreign investment in Myanmars oil &
gas sector reached $3.4billion in 89 projects at the end of
May 2009.
Source: News reports; Compiled by Frost & Sullivan
9836-14 34
2
Vietnam
The government of Vietnam has opened its petroleum sector to more categories of
businesses and relaxed restrictions with an amended decree that allows enterprises as
well as all foreign and Vietnamese organizations and individuals to participate effective
from Feb 2010.
Under the new decree, with all exploration and drilling activities required to be carried
out through PetroVietnam, exploration contacts can be extended if the work is not
completed on schedule. The decree also supplements some regulations related to
bidding, permitting companies and individuals involved in petroleum exploration and
drilling to hire sub-contractors
Vietnams oil & gas exploration activities stepped up and gained a lot of success in
2009. In 2009, the Vietnam Oil & Gas group had 6 domestic oil & gas discoveries,
increasing the countrys domestic oil & gas reserves to 34 million tonnes. Vietnam is
promoting the domestic industry to support the oil & gas industry. In 2009, building a
new 60 meter oil rig was commenced to replace the oil rig that had been hire from a
foreign country.
9836-14 35
2
Vietnam (Contd)
Producing fields: Bach Ho, Rong, Rang Dong, Ruby, Su tu den (Cuu long), Dai hung, Lan Tay (Nam Con Son),
Bunga Kekwa - Cai Nuoc, Bunga Raya v Bunga Seroja (Malay), Su Tu Vang.
Appraising and developing fields: Hai Thach, Rong Doi, Su Tu Trang (Cuu Long), Rong oi Tay (Nam Con Son),
Kim Long, Ca Voi, Ac Quy (Malay).
Song Hong Basin:

covers about 126,000km2
Water depth in the area: 20-800m. Cuu Long Basin is now considered to be
Drilled:>50wells (25 wells offshore) mature, with greater than 50.0 percent
Estimated reserves: 5.76 Bboe probability that more than 50.0 percent of
the total petroleum in the region has been
discovered, generally covered by extensive
Tu Chinh- Vung May Basin seismic grid and high drilling density.
covers about approximately 28 000km2 Submature regions such as Song Hong,
Water depth: 1000-1500m. Nam Con Son and Malay-Tho Chu Basins
Drilled: 1well have a greater than 50.0 percent probability
Estimated reserves: 6.3 Bboe that less than 50.0 percent of the region's
total petroleum resources has been
discovered with medium seismic and
drilling density. Phu Khanh Basin and
frontier areas are those without petroleum
Phu Khanh Basin discoveries, where seismic coverage is
covers about 56,000km2. sparse and with few wells drilled.
Water depth
in the area: 50-2500m.
Drilled: 2wells
Estimated reserves: 2.48 Bboe
Source: PETROVIETNAM; Compiled by Frost & Sullivan
9836-14 36
2
Vietnam (Contd)
Aug 2010: Development of the Chim So field off southern Vietnam remains on
schedule, according to Premier Oil.
During the first half of 2010, installation was completed of the production platform
jacket and the 100-km (62-mi) pipeline which will transport gas from Chim So to the
Nam Con Son trunkline.
Development drilling started in mid-June, with eight wells to be drilled ahead of first
oil. The topsides for the wellhead platform have been installed offshore. At end-July,
conversion of the Lewek Emas FPSO in Singapore was 60.0 percent complete. The
finished floater will be moved out to the field during the first half of 2011.
Aug 2010: Premier says work has continued on the C Rong Do oil discovery in the
Nam Con Son basin block 07/03 ahead of a planned appraisal well early in 2111.
During July, 3D seismic data acquisition started over the central area of the block and
over block 104-109/05 offshore northern Vietnam, ahead of exploration drilling
planned during mid-2011.
March 2010: The Vietsovpetro joint venture enterprise and the Vietnam-Russia-Japan
company (VRJ) produced first oil from the Nam Rong-Doi Moi oil field
Source: PETROVIETNAM; Compiled by Frost & Sullivan
9836-14 37
2
Vietnam (Contd)
Chim Sao Oilfield, Vietnam

Key Data
Location Block 12W and 12E, South east of offshore Vietnam
Project Type FPSO
Discovery 2006
Water Depth 377ft
Production July 2011
Operator Premier Oil
Ownership Premier Oil (53.12%), Santos (31.88%) and PVEP (15%)
The Chim Sao field is located in Blocks 12W and 12E, which lie at a water depth
of around 377ft, 400km offshore Vietnam.
The Chim Sao field development plan was approved in 2008. The first phase of
development involved two wellhead platforms planned to be tied back to the
FPSO Nexus 1 of Nexus Floating Production. Later, however, the FPSO lease
arrangements were made with a joint venture of Ezra Holding, EOC,
PetroVietnam and KSI Production in February 2010.
9836-14 38
2
Australia and New Zealand
The table below highlights approximate revenues from upstream operations in Australia for some
of the major oil and gas companies.
Revenues from Upstream Operations in Australia

Company (for latest reporting periods available)
BHP Billiton A$5.9 billion for the period 2008-2009
Woodside Petroleum A$4.35 billion for the period 2009
ExxonMobil Australia A$2.43 billion for the period 2007
Shell Australia A$2.35 billion for the period 2008
Santos Limited A$2.34 billion for the period 2009
Origin Energy A$516 million for the period 2008-2009
9836-14 39
2
Australia and New Zealand (Contd)
FALLING oil prices raised the interest in Australia's liquefied natural gas sector as oil majors look to
boost vital reserves they can no longer secure in areas like Canada's oil sands.
Van Gogh
Exmouth Sub-Basin, WA
Pluto
Water depth340-370m
Northern Carnarvon Basin,
First oil: 2Q, 2009
Water depth85m (platform);
No of wells: 10
1,000-400m (field)
Capital expenditure: About $560m.
First Gas Late 2010
Estimated reserves in excess of 50Mmbbl
No of wells: Initially 5
Capital expenditure: A$12bn
Recoverable reserves: 5Tcf
Angel Gas Project
North West Shelf, WA
Water depth80m
Capital expenditureA$1.6bn
No of wells: 3
Recoverable reserves1.85Tcf
of gas, 84Mmbbls of Ichthys
condensate Operator: IPEX
First gas: October 2008 Start-up: 2012
A$8 billion
Source: Dept of Industry & Resources; Compiled by Frost & Sullivan
9836-14 40
2
Kipper Gas Field
Location: in 100m of water, 45km from Ninety Mile Beach in the Gippsland
Basin
Discovery: 1986
Project Cost: A$1.4bn
Operator: ExxonMobil
Shareholders: Santos, ExxonMobil, BHP Billiton
Completion: 2011
Recoverable Reserves: 620Bcf (Gas) estimated 610 Petajoules of sales
gas; 30MMboe (Condensate and LPG)
Kitan Oilfield, Australia
Key Data: Discovered 2008
Sunrise Gas Field Water depth 1,000ft (approximately)
Project Type: Gas Project First production 2011
Location: Timor Sea Owners Eni (40%), INPEX Timor Sea (35%), Talisman Resources (25%)
Field: Greater Sunrise Contractors Bluewater, FMC Technologies
Operator: Woodside Energy
Shareholders: Woodside Energy, Philips The Kitan oilfield lies in permit 06-105 of the Joint Petroleum Development
Petroleum, Shell and Osaka Gas Area (JPDA), 170km offshore the Timor-Leste coast and 500km from the
Completion: 2013 Australian coast.
Production: 9Tcf (Natural Gas), 300MMb
(Condensate) JPDA is jointly administered by Timor-Leste and Australia, and is
regulated by Petroleum Safety Authorities (PSA).
Kitan's reserves are estimated to be in the range of 30-40 million barrels
of oil.
The field development started in April 2010. It is being developed as three
Source: Compiled by Frost & Sullivan subsea wells connected to FPSO Bluewater.
9836-14 41
2
Browse Maari
Operator: Woodside Taranaki Basin
Start-up: 2012 First oil announced in March 2009.
A$11.2 billion Number of Wells: 5
Expected Production: 50 MMboe
Capital expenditure: $600 million
Kupe Project
Taranaki Basin, North Island,
New Zealand
Water depth35m
First GasMid-2009
No of wells: 6
Capital expenditure about
$730m
Gorgon Field Development: Reinga Basin Opened for Exploration

The long-delayed A$50 billion Gorgon LNG
project, potentially the nation's biggest Q1, 2010: New Zealand announced the opening of six new petroleum
development yet, is picking up steam, with exploration blocks across the Reinga Basin off the northwest coast of
operator Chevron labeling it the company's top New Zealand. The block offer covers 105,230 sq km, and neighbours the
priority. Northland Basin also currently open for bidding. This is the first time
Project start-up: 2014 blocks have been offered over the Reinga Basin. The current block offer
keeps up the momentum generated by previous block offer releases
such as onshore Tarnaki, offshore Raukumara and offshore Northland.
9836-14 42
3 OVERVIEW OF THE SUBSEA SECTOR
43
3
Introduction
`Subsea` is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill,
and develop oil and gas fields that exist below the ocean floors. This may be in `shallow` or `deepwater` or ultra
deepwater. `Deepwater` is a term often used to refer to subsea projects in water depths below 3,000 - 7,000 feet.
Ultra deepwater is below depths of 7,000 feet.
1) Survey: Swathe bathymetry data
showing exposed pipeline
2) Acoustics: sonar, etc.
4
3) AUVs, ROVs: diverless field
1 installation, and inspection/ integrity
4 4
4 management
4) Platforms, Vessels: FPSO, Rigs,

2
5 Offshore Support Vessels
2 5) Drilling & Downwhole: drilling and well

completion
3
3
6) Subsea Hardware: manifolds, actuators
6
and controls, christmas trees, umbilicals
7
6
7) Pipelines: pipelines
9836-14 44
3
Subsea Equipment Market Structure
Inspection
Exxon Mobil Contract Agency
Chevron, etc
Engineering
Field Operator
Sub-contractors
Sub-sea
Project Diving
Sub-contracts
Project Support
Main Contract Execution
Offshore
Project Supply Vessel
Sub-contracts Execution Supplier
EPC (Main Contractor) Sub-contractors

Drilling Support Floating Structure Supply Installation and
subcontractor Commissioning
Halliburton, Weatherford,
Schlumberger, Baker Sub-contracts Sub-contracts
Sub-contracts
Hughes, Aker Kvaerner,
Vetco, Wood Group,
Material Manpower
AMEC, Petrofac Equipment Material (Steel Equipment Equipment
(Pipes, Support
Supplier A Plates, etc) Supplier D Supplier E
Drilling Fluids Providers
Suppliers
Suppliers
Tier I & II Companies Tier II & Tier III Companies and subsidiaries of Tier I companies
9836-14 45
3
Subsea Equipment Market - Value Chain
Contract
Sub-sea contractor executes the job
Field Operator
Plans the sub-sea job Contract
Execution
Contract
Support Vessel hired from a vessel supplier or
Contract Sub-sea Job owned by contractor
Field Survey
Contract Contract
Supply
Inspection
Technical Consultant for job planning and scope Equipment Supplier
Inspection Agency
Tier II Subsea Service Providers to the oil & gas
industry (examples, non-exhaustive)
Tier I Subsea Service Providers to the oil & gas
industry Acteon, Acergy, AGR Group ASA, Aker Kvaerner, All
Oceans, BPP Technical Services, Cameron, Cormon,
Halliburton, Baker Huges, Schlumberger and Weatherford DES Operations, DOF Subsea, Fisher Offshore, FMC,
are the top four global equipment and service providers to Furmanite International Limited, Heerema Group,
the oil & gas industry including Subsea applications. All the Lewis Ltd, MCS Advanced Subsea Engineering,
four have a very strong presence in North America and Nautronix, Poseidon Group, Subsea Solutions,
Europe. Subsea7, Technip (Technip Offshore), TSMarine.
The above four are classified as Tier I based on their global
presence, revenues, wide product and services portfolio.
9836-14 46
3
Asia Pacific Subsea Sector - Key Fields
Key fields on Indian East Coast

China PRC
D6 (Dhirubhai): 900 meters water depth Peng Lai 19-3 (Main Phase)
Key Fields on Indian West Coast
M Field (Padmavati): 500 meters
Mukta: 80 meters water depth Krishna-Godavari G-1 AA: 200 to 490 meters
Mumbai D-18: 90 meters Tapti South: 20 meters
Mumbai EC: 90 meters
Mumbai CA 1: 55 meters
Key fields in Australia
Heera (B-38 & B-37-B): 50 meters Myanmar
Shwe (Block A-1)
Montara, Puffin SW, Vincent, Van Gogh, Pyrenees
and Crux.
Key fields in Malaysian Waters: Thailand
Arthit (Block B15A Jansz, Jansz SE, Gorgon, Longtom, Maitland and
Kikeh: 1330 meters water depth & B16A) Sole
Kikeh Kecil: 1359 meters
Gumusut/Kakap: 1000 meters
Kebabangan (SB-J) (Gas): 300 meters
Key fields in Indonesian Waters:

Deepwater Definition
Terang/Sirasun: 150 300 meters water depth Deepwater: + 3000 ft (900 m)
Gendalo: 1,425 meters Ultra Deepwater: + 7000 ft (2100 m)
West Seno expansion: 953 meters
Aton: 1,150 meters
9836-14 47
3
Exploration & Development Trends - Asia Pacific Total Subsea Expenditure
2008-12 US$ Million

US$ Million
China (PRC) 474.0

India 2,212.0
Indonesia 2,386.0
Malaysia 1,826.0
Philippines 485.0
Australia 6,805.0
New Zealand 111.0
Grand Total 14,300.0
Total Subsea Expenditure (US $ Million) by Country 2008-2012

The subsea sector in Asia is relatively smaller compared to other subsea regions such as Africa, GOM,
Latin America and Europe.
Definition: Subsea expenditure includes the drilling and completion of wells and its associated equipment (trees,
manifolds and templates), pipelines and control lines.
The total subsea sector expenditure is the total of the four following sectors:
Subsea Drilling and Completion
Subsea Equipment
Subsea Pipelines
Subsea Control Lines
9836-14 48
3
Exploration & Development Trends - Asia Pacific Subsea Drilling and
Completion Expenditure
2008-12 US$ Million

China (PRC) 132.0
US$ Million
India 909.0
Indonesia 735.0
Malaysia 932.0
Philippines 223.0
Australia 1,586.0
New Zealand 24.0
Grand Total 4,541.0
Subsea Drilling and Completion Expenditure (US$ Million) by Country 2008-2012
Definition: Drilling and Completion refers to the drilling and completion of wells in the seabed. In terms of expenditure it
also includes the cost of a tree.
9836-14 49
3
Exploration & Development Trends - Asia Pacific Subsea Equipment
Expenditure
Asia is expected to become a more important player in terms of subsea equipment. The expenditure on manifolds is
expected to grow substantially. Deep water plays will require a shift in installation equipment and expertise to these
areas.
2008-12 US$ Million

Manifold 1,390.0
Tree 1,381.0
US$ Million
Grand Total 2,771.0
Subsea Equipment Expenditure (US$ m) by type 2008-2012
Definition: Subsea equipment expenditure is the procurement, installation and hook-up of manifolds, PLEMs, Templates
and Christmas trees.
9836-14 50
3
Exploration & Development Trends - Asia Pacific Subsea Pipeline
Expenditure
2008-12 US$ Million

US$ Million China (PRC) 203.0
India 992.0
Indonesia 1,158.0
Malaysia 590.0
Philippines 166.0
Australia 4,125.0
New Zealand 41.0
Grand Total 7,275
Subsea Pipeline Expenditure (US$ Million) by Country 2008-2012
Definition: Pipelines refer to all lines which are directly connected to a subsea unit and include those flying leads and
jumpers which would not necessarily be laid by pipeline installation vessels. Trunk lines are not considered.
9836-14 51
3
Exploration & Development Trends - Asia Pacific Subsea Control Lines
Expenditure
2008-12 US$ Million

China (PRC) 62.0
US$ Million
India 117.0
Indonesia 260.0
Malaysia 110.0
Philippines 18.0
Australia 525.0
New Zealand 2.0
Grand Total 1,094.0
Subsea Control Lines Expenditure (US$ Million) by Country 2008-2012
Definition: Control lines are various external electrical lines or fluid tubes which connect one portion of a system to
another. A control line attached to a piece of equipment, usually a subsea wellhead, to provide hydraulic or electrical
control, or inject small amounts of chemicals.
9836-14 52
4 ROVs AND FPSO MARKETS
53
4
Global ROV Market
Remotely Operated Vehicle (ROV)
ROVs are unoccupied, highly maneuverable and operated by a person aboard

a vessel. They are linked to the ship by a tether (alsoreferred to as an umbilical
cable), a group of cables that carry electrical power, video and data signals
back and forth between the operator and the vehicle.
Oil & Gas Applications
Applications:
Jack-up and Semi-
The oil & gas industry uses the majority of ROVs Used for surveys, submersible site surveys
commissioning, Support and decommissioning activities.
Autonomous Underwater Vehicle (AUV) Pipeline route Surveys
An AUV is a robot which travels underwater. Sometimes called Unmanned

Underwater Vehicles, these devices are powered by batteries or fuel cells and
Drilling and Well head
can operate in water as deep as 6000 meters. Advances in propulsion systems
support
and power source technology give these robotic submarines extended
endurance in both time and distance.
Template installation
Applications:
The oil and gas industry uses AUVs to make detailed maps of the seafloor Pipelines inspection
before they start building subsea infrastructure. The detailed maps from the
AUVs allows the oil companies to install pipelines and sub sea completions in
the most cost effective manner with the minimum disruption to the environment. Platform
Source: Compiled by Frost & Sullivan decommissioning
9836-14 54
4
Global ROV Expenditure and ROV Units
Global ROV Expenditure (US$ Million)
US$ Million 2010 2011 2012

Drill Support 685 745 800
Field Support 555 600 650
Total 1,240 1,345 1,450
Global ROV Units (Global)
Units 2010 2011 2012

Drill Support 260 280 300
Field Support 210 225 245
Total 470 505 545
9836-14 55
4
FPSO Markets - Introduction
Introduction to FPSO
A floating production, storage and offloading (FPSO)

unit is a floating vessel used by the offshore industry for
the processing and storage of oil and gas.
A FPSO vessel is designed to receive oil or gas produced

from nearby platforms or subsea template, process it, and
store it until oil or gas can be offloaded onto a tanker or
transported through a pipeline.
FPSOs are preferred in frontier offshore regions as they

are easy to install, and do not require a local pipeline
infrastructure to export oil and gas.
FPSOs can be a conversion of an oil tanker or can be a

vessel built specially for the application.
A vessel used to store oil only is referred to as a floating

storage and offloading vessel (FSO). Source: Compiled by Frost & Sullivan
9836-14 56
4
FPSO Markets - Overview
One of the hardest hit sectors in 2009's global energy industry downturn was the floating production, storage and
offloading vessel (FPSO) market.
The FPSO market was adversely affected by concerns over weakening oil demand and a reduction in available
investment capital, which undermined the stable market conditions required to initiate FPSO projects-typically long-term
and capital-intensive in nature.
As a result, there were no new FPSO contracts awarded in 2009 during the first half of 2009; a stark contrast to the
record activity from 2004 to 2008.
However, as the last quarter of 2009 showed early signs of recovery in the wider economy, there was activity for new
units to be ordered.
Looking forward into 2010, the stage is now set for the FPSO market to recover, with strong long-term market
fundamentals being complemented by more stable commodity price movements and the emerging prospects of global
economic recovery.
New dynamics in the global FPSO market, such as demand growth in Asia, the greater role of smaller independent oil
companies and the increased importance of smaller offshore oil fields will drive market growth.
The FPSO market has risen to prominence recently as the offshore oil industry has delved into ever deeper and more
remote locations, and the market is entering a mature phase.
9836-14 57
4
FPSO Markets - Asia Pacific Market
FPSO Deployment in the Asia Pacific, 2010 Leased Versus Owned
Total 61 FPSOs deployed in APAC waters Total: 61
Vietnam, 8
Australia, 16
Leased, 32
Thailand, 5
Philippines, 1
New Zealand, 2
Malaysia, 3
Owned, 29
Indonesia, 8 China, 17
Source: World Fleet Data
India, 1
The FPSO market has grown as the offshore oil industry has ventured into deeper and more remote
locations. The market is in entering the maturity phase.
FPSO projects are mostly long-term and need large capital outlay. Stable market conditions are
necessary for the FPSO projects to take-off. The FPSO was negatively impacted by the 2009
economic recession.
The FPSO market is on the road to recovery. Good prospects indicated for 2011 and beyond.
9836-14 58
4
FPSO Markets - Asia Pacific Market (Contd)
Oceaneering, 1 Premuda, 1
SBMO, 1 SembCorp Marine, 1
Premier Oil, 1
M3nergy, 1 Maersk, 1 Tanker Pacific, 1
FVSB, 1
Bumi Armada, 1 CNOOC, 10
Bluewater, 1
BLT, 1
MODEC, 8
BHP, 1
Anadarko, 1
Aibel, 1
AGR, 1
Vietsovpetro, 2
ConocoPhillips, 5
Rubicon Offshore , 2
Woodside, 4
PTSC, 2
Prosafe, 2 Emas, 3 Aker BO, 3

Chevron, 2
Coogee, 2
FPSO Operators in the Asia Pacific, 2010

Total 61 FPSOs deployed in APAC waters.
9836-14 59
4
FPSO Markets - Market Drivers
Market Drivers National oil

companies in Viability of
the Asia Pacific offshore
region marginal fields
More Emergence of Fast track

deepwater smaller projects/Phased
plays globally independent oil & developments
Asia is gas companies

emerging as a
major market
for FPSOs
APAC Installations
FPSOs deployment favorable in Asia Pacific benign and shallow waters.
Most past deployments have been tanker conversions.
The proportion of new builds is expected to increase in the forecast.
9836-14 60
4
FPSO Markets - FPSO Installations Forecast
20
18
16
14
12
10
8
6
4
2
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Number of FPSO
10 11 12 11 12 16 19 9 9 10
Installations
Source: Mustang Engineering, Frost & Sullivan
9836-14 61
4
FPSO Markets - FPS Installation Capital Expenditure
ANZ Western Europe
South Asia, SEA, 8% 15%
North Asia
14%
Africa
26%
North America
Latin America 6%
30% Middle East
1%
Global FPS Installation Capital Expenditure, 2010-2014

Total: US$ 37.00 Billion
Lower Capital Outlay Required for APAC Installations.

Most of the planned installations in Asia will be redeployments. These require minimal capital outlay for upgrades
and modifications.
Asia Pacific has benign and shallow waters, thus allowing simpler, cost effective FPS solutions to be implemented.
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4
FPSO Markets - Innovation
Innovation is important but tough sell with major oil & gas companies
Smaller independent operators more open to selecting new innovative designs compared to large multi-national
operators.
The primary aim of innovation is to reduce costs of the vessels, other development components and project
operations.
New design concepts are proposed by engineering companies, contractors and fabricators.
An innovative new FPS design can reduce the capital and operating costs.
An unproven concept must have cost advantage over other rival field proven solutions if it is to compete.
A minimum savings of 10-20% on capital expenditure and or operation expenditure relative to proven solutions
are required to justify for an operator to choose a new FPS design.
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4
Prospective FPSO Projects in Asia Pacific
THAILAND
INDIA PTTEP Block B6/27 Nang Nuan FPSO
KG-DWN-98/2 ONGC
VIETNAM
Lam Son JOC FPSO
Chevron Block 48/95 & 52/97 FSO
Bien Dong Hai Thach & Moc Tinh FSO
MALAYSIA
Petronas FLNG FEED
Shell Mallikai TLWP
Petronas/MISC FSRU INDONESIA- Shallow Water
Terang/Sisarun FPSO (TSB), AUSTRALIA
Pagerungan, INPEX Ichthys FPSO
Madura, Woodside Browse LNG Development
Kakap Natuna
Bukit Tua
INDONESIA- Deep Water

Gehem
Gendalo
INDONESIA
INPEX Masela FLNG
Petramina FSRU
Source: MODEC, Industry
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5 UPSTREAM OIL & GAS VALUE CHAIN - MAPPING COMPANIES
65
5
Activities in the Upstream Sector Value Chain
Greenfield Brownfield
Exploration Phase Development Phase Production Phase Abandonment Phase
Engineering and
Seismic activities Operations and Well plugging
project
Drilling services maintenance services Dismantling of
management
Marine support Field review and structures
Hook-up and optimisation Decommission
commissioning Retrofit work machinery and
Drilling rigs and Structural maintenance equipment
services and upgrade Marine support
Construction and Equipment maintenance
fabrication of and upgrade
structures Marine support
Marine support FPSOs supply and
FPSOs supply and operation
operation ROVs supply and
ROVs supply and operation
operation
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5
Companies along the Upstream Sector Value Chain
National Oil International Oil Other Oil & Gas

Project Companies; Companies; Companies and
Development Petronas, Chevron, Shell, Project Investment
Pertamina, etc etc Firms
Engineering and Halliburton Weatherford Schlumberger National Oil

Project Companies
Management
Aker Kvaerner Fluor Foster Wheeler
International Oil
Companies
Technip Acergy Baker Hughes
9836-14 67
5
Companies along the Upstream Sector Value Chain (Contd)
Halliburton Weatherford Schlumberger Baker Hughes

Drilling Services
Diamond Offshore Noble Corporation Transocean Rowan Companies
Pride International Maersk Drilling Services GE Oil & Gas: VetcoGray
SapuraCrest Petroleum ELNUSA Hunt Energy Atwood Oceanics
Aban Offshore AGR Drilling Services Saipem Seadrill
Jindal & Drilling Industries Ltd SAAG Consolidated (M) Ltd
CNPC Great Wall Drilling Company Japan Drilling Company
Tier I Schlumberger, Baker Hughes. Halliburton and Weatherford BV.

Drilling Equipment
Suppliers Tier II Aberdeen Global Drilling Supplies, Ace Tricone, Andergauge, Bentec Drilling, BILCO
Tools, Cameron, Crown Energy, Derrick Services, Diamond Air Drilling, Dril-Quip, Inc., Expro
Group, Hydra Group, JSC Trust, Kandle Oilfield, National Oilwell, Romar Oilfield, Shenkai,
Varel International, Water International, Wilson Energy, Woodco USA, etc.
Source: Industry sources; Compiled by Frost & Sullivan
9836-14 68
5
Subsea Equipment
(Trees, Manifolds,
Templates and
Valves) Suppliers
Subsea Trees FMC Technologies, Cameron, Aker Kvaerner, VetcoGray (GE Oil & Gas), Azura Energy
Systems, etc.
Manifolds, Templates FMC Technologies, AKD Engineering, Cameron, Hex Valve, Vetco Gray, etc.
Tyco, Vetco Gray, FMC Technologies, Azura Energy Systems, BEL Valves, Technor Valves
Valves and Automation, Alco Valves, Weir Valves, Dublok, Pacson Valves, BuTech, LB Bently,
Bjorge, Norwegian Valve Technology A/S, SkoFlo, etc.
Manufacturers Snapshot:
FMC Technologies, Inc. designs and manufactures flowline products, pumps and valves used in well completion and
stimulation activities by oilfield service companies, such as Schlumberger Limited, BJ Services Company, Halliburton
Company and Weatherford.
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5
Seismic Activities Halliburton Fugro Weatherford Baker Hughes

(Surveying)
Petroleum Geo- Bergen Oilfield SHIVani Schlumberger

Services Services
Construction and Sembcorp

Keppel Hyundai Daewoo
Fabrication of Marine
Structures
IHI PPL Shipyard STX Samsung
Mitsui Aker Kvaerner Ramunia MMC
Mitsubishi
9836-14 70
5
Support Services: Halliburton Schlumberger Proserv Offshore TS Marine

Structural
Maintenance,
Operations &
Maintenance Weatherford Scomi BJ Services ELNUSA
Services, Hook-up,
Decommissioning
Fugro Petra Energy PetroUsaha SapuraCrest
Baker Hughes Tetratec
Aker Kvaerner
AF Decom
Offshore
Note: List of companies is not exhaustive
9836-14 71
5
ROV Hitec Subsea (National- SMD Hydrovision ISE,

Perry Slingsby
Manufacture Oilwell Varco) Ltd International
Systems
Submarine
(Triton
SAAB Underwater Systems engineering
Schilling Robotics Group)
AB
AUV Konsberg Maritime MacArtney A/S Bluefin Robotics

Manufacture
ISE, International Submarine Hydriod, Inc.
Perry Slingsby Systems
engineering
(Triton Group)
Atlas Maridan
ROV & AUV Deep Marine

Fugro Subsea 7 Helix
Operations Technology
Oceaneering Advanced Subsea

Saipem Deep Ocean
International SAS
Acergy Heerema Cybernetix
9836-14 72
5
FPSO General Technip, Prosafe, Bumi Armada, Aker Kvaerner, SBMO, MODEC, Saipem, M3nergy,
Contractor (EPCI) Fluor/AMEC, Sevan Marine, Oceaneering International.
FPSO Fabrication/
Keppel, Jurong, Mitsubishi, IHI, Sembawang, Dalian, Shanghai, Jiangan, Hudong,
Conversion
Samsung, COSCO, Aker Yards, Mitsui, Malaysia Shipyard, MMHE, Hitachi Zosen.
Shipyards
FPSO Operators AGR, Aibel, Aker BO, Anadarko, BHP, BLT, Bluewater, Bumi Armada, Chevron,
CNOOC, ConocoPhillips, Coogee, Emas, FVSB, M3nergy, Maersk, MODEC,
Oil Companies and Oceaneering, Premier Oil, Premuda, Prosafe, PTSC, Rubicon Offshore , SBMO,
Contractors SembCorp Marine, Tanker Pacific, Vietsovpetro, Woodside.
9836-14 73
6 OVERVIEW OF ASIA PACIFIC OIL FIELD DRILLING
EQUIPMENT & SERVICES
74
6
Introduction to Drilling
In a broad sense, operators drill two basic types of wellsexploratory (to find new oil or gas deposits) and
development (to prepare the discovery for production). Water depths range from 20 to 400 feet for jack-up rigs to up to
10,000 feet for semisubmersibles and drillships.
Offshore exploration and development wells are often drilled from mobile offshore drilling units (MODUs). Depending
on the water depth and remoteness of the location, these rigs may be jack-ups (up to 400 feet of water), or
semisubmersibles, or drillships (up to 10,000 feet of water). Jack-ups are bottom-supported units; semisubmersibles
and drillships are floating units (floaters).
In terms of numbers, jack-up rigs drill most offshore wells. Semisubmersibles run a distant second, and drillships come
in third, though most of the major new discoveries today are being made by the floaters in deep water. Oil companies
(operators) select rigs that are specifically suited for a particular job, because each rig and each well has its own
specifications and the rig must be matched to the well.
Source: Diamond Offshore
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6
Jack-ups, Drillships, Semi-submersibles and Tender Rigs
Jack-up drilling units are used in shallow water areas. Jack-ups

are floated into place and the "legs" are lowered to the sea floor.
The body of the structure is then "jacked" above the water surface
to provide a stable platform for drilling operations.
A drillship is a maritime vessel that has been fitted with drilling

apparatus. It is most often used for exploratory offshore drilling of
new oil or gas wells in deep water or for scientific drilling. The drillship
can also be used as a platform to carry out well maintenance or
completion work such as casing and tubing installation or subsea tree
installations.
The greatest advantages of modern drillships is their ability to drill in

water depths of more than 2500 meters and the time saved sailing
between oilfields worldwide. Drillships are completely independent, in
contrast to semi-submersibles and jackup barges.
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6
Jack-ups, Drillships, Semi-submersibles and Tender Rigs (Contd)
Semi-submersible drilling units are used in open ocean areas. They can drill
in very deep water.
These structures are called semi-submersibles because their legs are flooded
with water for extra stability in the open ocean.
Semi-submersibles float on the water and utilize a series of anchors and

winches to maintain their position over the drilling location.
Self-Erecting Tender Rigs (SETR's) have been used in South East Asia,
West Africa and the Middle East for 40 years for drilling development wells
from fixed platforms.
Inherent in the SETR concept is that equipment required to support the

drilling operation such as power, living quarters, etc, is located on the tender,
while only equipment actually needed for drilling such as the derrick,
topdrive, BOP, etc are installed on the platform.
However, with focus on use of dry completions in deep water with the Xmas
trees installed on a floating platform like a TLP or SPAR - the self-erecting
tender rig concept presents many benefits for field development also in deep
water, particularly for marginal field development, where the field economics
may depend on solutions using small, remote controlled wellhead TLP's.
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6
Offshore Outlook
Offshore Outlook
Utilization is strong in the deepwater segment, near 90% currently. A total of 22 newly constructed and uncommitted
deepwater rigs were entering the market over the next two years, including five in 2010. Currently four deepwater
semisubmersibles are idle, with another 12 with contracts expiring during the year.
The mid water segment has a utilization of only 80%, with 14 rigs idle and another 33 ending contracts in 2010. Another
problem here is that with all the idle capacity in the deepwater segment, rigs here sometimes compete with mid water rigs.
The jack up market is faring badly. Fifty rigs will be completed over the next two years, with 33 entering the market in
2010 and 17 in 2011. Most of this capacity was built on speculation without signed contracts. To add to this surplus, 47%
of all jack up rigs have contracts expiring during 2010.
Analysts are however optimistic that demand will exceed supply in the jack up market by the end of 2010.
The Bottom Line
The offshore rig market is still suffering the impact of rabid overbuilding at the peak of the last cycle, and a rush into
onshore plays due to the shale gas boom. These obstacles to recovery may hurt the industry for quite some time.
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6
Jack-up Deployment in Asia Pacific by Key Countries
Jack-up Deployment -2010
Australia 2
Brunei 3
China 21
India 35
Indonesia 5
Malaysia 12
Vietnam 12
Jack-up Deployment in Asia Pacific by Key Total 90

Countries, 2010.
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6
Jack-up Deployment in Asia Pacific by Owners
Total: 90
Jack-up Deployment in Asia Pacific by Owners, 2010.
9836-14 80
6
Jack-up Manufacturers
Jack-ups Manufacturers Market Share in Asia Pacific, 2010
From Data available for 90 Jack-ups

deployed in Asia Pacific.
LeTourneau is
owned by Rowan
Companies.
Ingalls is part of
Northrop Grumman.
Far East Levingston
is now Keppel FELs.
Note: Others include Mitsubishi, PPL Shipyard, Rauma Repola, Italcanteiri Shipyard, Nippon Kokan, Levingston Shipbuilding,
Mazagon Dock, CFEM, Astilleros Corrientes, U.E.I Clydebank, China Shipbuilding, Alabama Drydock, Jurong Shipyard and
Daewoo Shipbuilding.
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6
Drillship Deployment in Asia Pacific by Key Countries
Drillship Deployment -2010
Australia 1
Malaysia 1
Vietnam 1
India 7
Total 10
Drillship Deployment in Asia Pacific by Key

Countries, 2010.
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6
Drillship Deployment in Asia Pacific by Owners
Total: 10
Drillship Deployment in Asia Pacific by Owners, 2010.
9836-14 83
6
Drill Ships Manufacturers
Drill Ships Manufacturers Market Share in Asia Pacific, 2010
From Data available for 10 Drillships

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6
Semi-submersible Deployment in Asia Pacific by Key Countries
Semi-submersible Deployment
2010
Australia 9
China 4
India 3
Malaysia 4
Vietnam 2
Total 22
Semi-submersible Deployment in Asia Pacific by

Key Countries, 2010.
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6
Semi-submersible Deployment in Asia Pacific by Owners
Total: 22
Semi-submersible Deployment in Asia Pacific by Owners, 2010.
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6
Semi-submersible Manufacturers
Semi-submersible Manufacturers Market Share in Asia Pacific, 2010
From Data available for 22 Semi-subs

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6
Tender Rigs Deployment in Asia Pacific by Key Countries
Semi-Sub Deployment 2010
Brunei 2
Indonesia 4
Malaysia 6
Thailand 5
Total 17
Tender Rigs Deployment in Asia Pacific by Key

Countries, 2010.
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6
Tender Rigs Deployment in Asia Pacific by Owners
Total: 17
Tender Rigs Deployment in Asia Pacific by Owners, 2010.
9836-14 89
6
Tender Rigs Manufacturers
Tender Rigs Manufacturers Market Share in Asia Pacific, 2010
From Data available for 17 Tender

Rigs deployed in Asia Pacific.
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6
Oil Field Drilling Equipment & Services Providers
The global top 4 oil field drilling equipment and services providers are:
Schlumberger Limited
Halliburton
Baker Hughes
Weatherford
Prominent global drilling service providers include Noble Corporation, Diamond International, Transocean, Pride
International, Rowan Companies, AGR Drilling Services, Maersk Drilling Services, CNPCs Great Wall Drilling
Company, Atwood Oceanics, SeaDrill, Saipem and GE Oil & Gas VetcoGray.
Regional players include companies such as Hunt Energy (Australia), SAAG Consolidated (Malaysia and
ASEAN), Aban Offshore (India), Jindal Drilling (India), SapuraCrest Petroleum (Malaysia) and ELNUSA
(Indonesia).
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6
Oil Field Drilling Equipment & Services Providers Company Profiles
Schlumberger Limited
Schlumberger Limited (NYSE: SLB) is the world's largest oilfield services company. Founded in 1926, Schlumberger supplies the petroleum
industry with services such as seismic acquisition and processing, formation evaluation, well testing and directional drilling, well cementing and
stimulation, artificial lift, well completions and consulting, and software and information management. The company is also involved in the
groundwater extraction and carbon capture and storage industries. Acquired Smith International.
Halliburton
The Global Top Four
Halliburton, founded in 1919, is one of the worlds largest providers of products and services to the energy industry. With over 50,000
employees in approximately 70 countries, the company serves the upstream oil and gas industry throughout the life cycle of the reservoir - from
locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing
production through the life of the field.
Halliburton consists of two divisions: Drilling and Evaluation and Completion and Production. As of December 31, 2009, these two divisions
accounted for over 14 billion dollars in Revenue.
Baker Hughes
Baker Hughes (NYSE: BHI) is the world's third-largest oilfield services company behind Schlumberger and Halliburton, its main competitors.
Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion, production and
reservoir consulting. Baker Hughes operates in over 90 countries worldwide mainly based in countries with a mature petroleum industry as is
the case with most oil & gas service companies. Baker Hughes has its headquarters at Houston, Texas, USA. Acquired BJ Services in April
2010.
Weatherford
Weatherford International Oil Field Services Ltd (NYSE: WFT) is one of the largest international oil and natural gas service companies. The
company provides products and services for drilling, evaluation, completion, production and intervention of oil and natural gas wells, along with
pipeline construction and commissioning. Headquartered in Switzerland, Weatherford currently operates in more than 100 countries across the
globe and employ more than 50,000 people.
9836-14 92
6
Oil Field Drilling Equipment & Services Providers - Company Profiles
(Contd)
Noble Corporation
Noble is a leading offshore drilling contractor for the oil and gas industry. Noble
performs, through its subsidiaries, contract drilling services with a fleet of 69 offshore
drilling units (including five drilling rigs currently under construction or to be
constructed), located worldwide, including in the Middle East, India, the U.S. Gulf of
Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and Asian
Pacific. Noble also owns and operates a dynamically positioned floating production,
storage, offloading vessel. Noble's shares are traded on the New York Stock Exchange
under the symbol "NE.
Noble Corporation celebrated its 88th anniversary in 2009. Very few companies, and
even fewer drilling contractors, can claim this milestone. The Company's proactive style
of management has guided it from a one rig operation in 1921 to one of the largest
offshore drilling contractors in the world today. The Company's growth since the time of
its spin-off from Noble Affiliates in 1985 has come about through a series of strategic
acquisitions of offshore drilling assets and ancillary, non-capital intensive businesses
around the world.
These acquisitions follow the goals originally set forth in 1985 - to gain a strong position
in foreign drilling markets, to expand marine drilling operations and to move into new
markets and segments of the industry, preparing the Company to take advantage of an
improved marketplace.
9836-14 93
6
(Contd)
Diamond Offshore
Diamond Offshore Drilling, Inc., a leading deepwater drilling contractor, owns and operates one
of the largest fleets of offshore drilling units in the world. The company's diverse fleet consists of
32 semisubmersibles, 13 jack-ups and one dynamically positioned drillship.
Diamond Offshore provides contract drilling services to the energy industry around the globe
and is a leader in deepwater drilling. Configured to achieve the optimum balance of flexibility and
performance, Diamond Offshore's fleet has built its reputation on more than four decades of real-
world global drilling experience. Its crews have honed their skills in the harshest environments.
From the North Sea, the Gulf of Alaska, the Straits of Magellan, the south China Sea and
Australia's Bass Strait, Diamond Offshore's industry veterans know how to meet the most
formidable challenges.
Diamond Offshore employs approximately 5,500 men and women worldwide to offer a complete
spectrum of offshore drilling services tailored to our customers' needs. Headquartered in
Houston, Texas, the Company also maintains primary regional offices in Australia, Brazil, and
Scotland, with local offices in other countries as required to support operations.
Diamond Offshore's common stock trades on the New York Stock Exchange under the ticker
symbol "DO.
9836-14 94
6
(Contd)
Transocean
Transocean, the worlds largest offshore drilling contractor, provides the most versatile fleet of
mobile offshore drilling units to help clients find and develop oil and natural gas reserves.
Building on more than 50 years of experience with the highest specification rigs, the companys
18,000 employees are focused on safety and premier offshore drilling performance.
The company is the:
Largest offshore driller with 138 mobile offshore drilling units, plus an additional eight newbuild
rigs.
Largest jackup rig driller with 65 units.
Largest floating rig driller with 70 drillships and semisubmersible rigs.
Largest deepwater driller with 36 rigs that can operate in water depths of 4,500 feet or greater.
Largest offshore driller by equity market capitalization.
9836-14 95
6
(Contd)
Pride International
Headquartered in Houston, Texas, Pride International, Inc. is one of the world's largest offshore drilling contractors. Pride
provides contract drilling and related services to oil and gas companies worldwide.
With approximately 4,000 employees, Pride offers a multinational workforce with offices in the United States, Angola,
Brazil, and Saudi Arabia. We have positioned our fleet in some of the world's largest and most active exploration and
production basins.
Our fleet and operations currently consists of the following:
* 3 Deepwater drillships
* 3 Deepwater drillships under construction
* 6 Deepwater Semisubmersible
* 6 Midwater Semisubmersible
* 7 Jackups
* 2 Managed deepwater units
Rowan Companies, Inc.

Rowan Companies, Inc. is a major provider of international contract drilling services. Rowan also owns and operates a
manufacturing division that produces equipment for the drilling, mining and timber industries. The companys
manufacturing division built the first jack-up drilling rig in 1955 and has designed or built more than 200 rigs since,
including all 23 in the companys fleet.
9836-14 96
6
(Contd)
Atwood Oceanics
Atwood Oceanics, Inc., its international operating subsidiary, Atwood Oceanics Pacific Limited and related subsidiaries
(the Atwood Group), are engaged in the business of international offshore drilling, as well as the completion of
exploratory and developmental oil and gas wells, plus related support, management, and consulting services.
Saipem
Saipem S.p.A. (BIT: SPM) is an Italian oil and gas industry contractor. It is a subsidiary of Italian energy company Eni,
which owns approximately 43% of Saipem's shares. Saipem provides offshore and onshore drilling services.
SeaDrill
Seadrill is a leading offshore deepwater drilling company. The company operates a versatile fleet of 48 units that
comprises drillships, jack-up rigs, semi-submersible rigs and tender rigs for operations in shallow to ultra-deepwater areas
in harsh environment and benign environments.
Seadrill has some 7,500 skilled and highly competent employees, representing some 50 nationalities, operating in 15
countries on five continents.
Seadrill is listed on the New York Stock Exchange and the Oslo Stock Exchange
9836-14 97
6
(Contd)
GE Oil & Gas - VetcoGray

GE Oil & Gas offers VetcoGray equipment and services for onshore and offshore drilling and production. With over a
century of experience in the oil and gas industry, VetcoGray can offer, through a single interface, customized or
standardized solutions to meet the needs of any drilling and production project from concept to full production. The
product offering covers the spectrum from single well onshore drilling projects to multiple well deepwater facilities and
subsea production systems.
SapuraCrest Petroleum
The companys subsidiary Tioman Drilling Company Sdn Bhd provides drilling services. The Group's joint venture
initiative with Seadrill has seen the arrival of a new self-erecting tender rig known as the T-10 in the third quarter of
2007. The addition of the T-10 and modernization of the existing fleet will further enhance the existing fleet will further
enhance the division's competitiveness to secure additional contracts. The company now has 5 self-erecting tender rigs
and is the leader in Malaysias offshore oil and gas drilling business.
ELNUSA
A national company that possesses combined competencies in upstream oil and gas services, namely seismic, drilling to
oilfield.
The company is a leader in integrated upstream oil and gas services sector possessing strategic global alliances
established with world-class oil and gas companies, in compliance with global standards in work safety and
environment. The company owns a full-electric rig named Elnusa Modular Rig 1 which is the first and modern rig in
Asia Pacific region.
9836-14 98
6
(Contd)
AGR Drilling Services
AGR Group have three operating divisions: Petroleum Services, Drilling Services and Field Operations.
As a European-based group, the company has also established two geographical hubs to carry our business forward in
these important regions: Asia Pacific and Americas.
Maersk Drilling Services
Maersk Drilling provides high-efficiency drilling services to oil companies around the world. The companys modern fleet of
deepwater semi-submersibles, 375 & 350 ft jack-up rigs and cantilevered drilling barges ensures the highest level of
safety and drilling efficiency.
Maersk Drilling formerly named Maersk Contractors was established in 1972.
SAAG CONSOLIDATED (M) BHD
SAAG CONSOLIDATED (M) BHD "SAAG" is a key player in the oil and gas sector in Malaysia and the region for nearly
25 years, since its inception in 1982. As a company principally involved in providing management services, equipment
sales and services and undertaking contracts, SAAG and its group of companies some through strategic partnerships, is
involved in upstream and downstream activities in the oil and gas industry.
SAAG's core competencies include providing oil and gas pipelaying and Horizontal Direct Drilling (HDD) services. The
company is the owner/operator of Telaga Usaha a conventional electric modular workover rig.
9836-14 99
6
(Contd)
Aban Offshore
Aban is India's largest offshore drilling contractor in the private sector, offering world-class drilling and oil field services for
offshore exploration and production of hydrocarbons to the oil industry in India and abroad. This company was formerly
known as Aban Loyd Chiles.
Jindal Drilling & Industries Limited
Jindal Drilling & Industries Ltd. an ISO 9001:2008 company, is a part of D. P. Jindal Group, one of India's most respected,
diversified and leading Industrial House with revenues exceeding US$ 750 Million, employing more than 3000 people.
Incorporated in the year 1983 with a focus on providing quality Offshore Drilling and allied services.
Jindal is among the pioneers in India who ventured into the high technology area of Offshore Drilling and over the last two
decades have emerged as one of the major players in Indian Oil & Gas industry providing highest quality services and
performance to the entire satisfaction of clients. Currently the company is operating five jackup rigs all on long term
contract with ONGC.
Jindal Group is providing a wide spectrum services to Oil & Gas industry in India, such as Offshore Drilling services,
Directional and Horizontal Drilling services, Mud Logging services, manufacturing of API grade ERW Pipes up to 21" OD
and API grade Seamless Pipes and Tubes up to 13.3/8" OD etc.
9836-14 100
6
(Contd)
CNPC - Great Wall Drilling Company
CNPC has actively tapped the overseas drilling markets, making further progress in overseas drilling activities. The
companys Great Wall Drilling Company deploys its drilling and workover rigs for drilling operations in countries including
Sudan, Venezuela, Kazakhstan, Egypt, Indonesia, Qatar, Nigeria among others. Apart from drilling engineering, the
service scope has widened gradually to embrace drilling fluid, top drive, coring, cementing and directional wells services.
Hunt Energy
Hunt Energy & Mineral Co Australia Pty Ltd was founded in 1996 to drill a program of wells for Nelson Bunker Hunt from
Texas in the USA. The company imported a Drilling Rig (Rig #2) into Australia specifically for this purpose. Hunt Energy
drilled wells in South Australia 400 klms west of Moomba and in Queensland in the Winton area.
In 1999 ownership of the Company changed and with it brought a new sense of planning and direction. The Company
tendered for and won contracts to drill in the Fairview area in Queensland. A second Drilling Rig, (Rig #3) was purchased
and went to work to complete an extensive drilling project in tandem with Rig #2 at Fairview in Queensland.
Hunt has also drilled Wells in the Eromanga Basin in Queensland, the Cooper Basin and Stansbury Basin in South
Australia, the Gippsland Basin in Victoria and NSW.
Hunt Energy's commitment to the Oil & Gas Industry has seen the company grow over the past 10 years into a
competitive and efficient drilling Contractor.
9836-14 101
6
(Contd)
Japan Drilling Co., Ltd
Japan Drilling Co., Ltd. (JDC) is Japan's sole offshore drilling contractor, and has been providing quality drilling
services for more than 40 years. In addition to offshore drilling services, JDC provides Engineering Services, and R&D
in relation to offshore drilling as well as oil and gas exploration and development, and also Horizontal Directional
Drilling (HDD) services.
JDC provides quality offshore drilling services to oil and gas companies all over the world. JDC now operates three
jack-ups, two semi-submersible and one drillship.
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7 APPENDIX
ABBREVIATIONS/TERMINOLOGY
BRIEF PROFILES OF OIL COMPANIES
103
7
Abbreviations/Terminology
Abbreviation
Bboe Billion Barrels of Oil Equivalent
BCM Billion Cubic Meter
boe Barrels of Oil Equivalent
E&P Exploration & Production
FPSO Floating Production Storage & Offloading (Vessel)
IOC International Oil Company
mmboe Million Barrels of Oil Equivalent
NOC National Oil Company
ROV Remote Operated Vehicle
TCF Trillion Cubic Feet
tmB Thousand Million Barrels
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7
Brief Profiles of Oil Companies
Oil Companies in China

China National Petroleum Company (CNPC)
China National Petroleum Corporation was created from the former Ministry of Petroleum, and is the largest
of the state-owned oil companies. The company was established in July 1998, in accordance with Plan for
the Organizations Structure Reform of the State Council. CNPC is a large state-owned enterprise managed
by the investment organs authorized by the state and State-owned Assets Supervision and Administration
Commission.
CNPC is China's largest oil and gas producer and supplier, as well as one of the world's major oilfield
service providers and a globally reputed contractor in engineering construction. With a presence in almost
70 countries, the company is seeking an even greater international role. We provide energy in a profitable
manner, and always attach great importance to our social and environmental responsibilities.
PetroChina Company Limited

PetroChina is the largest oil and gas producer and distributor, playing a dominant role in the oil and gas
industry in China. It is not only one of the companies with the biggest sales revenue in China, but also one of
the largest oil companies in the world. PetroChina was established as a joint stock company with limited
liabilities by China National Petroleum Corporation under the Company Law and the Special Regulations on
the Overseas Offering and Listing of Shares by Joint Stock Limited Companies on November 5th, 1999.
PetroChina is the world's second most valuable company by market value as of June 30, 2010.
China National Petroleum Corporation (CNPC) is the sole sponsor and controlling shareholder of
PetroChina.
PetroChina is the PetroChinas subsidiaries include Jinzhou Petrochemical Co. Ltd., Liaohe Jinma Oilfield
Co. Ltd., and Jinlin Chemical Industry Co. Ltd.
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7
Brief Profiles of Oil Companies (Contd)

China Petroleum & Chemical Corporation (Sinopec) is the second largest of the Chinese state-
owned oil companies. The company is an integrated energy and chemical Company with principal
businesses of exploration production and trading of petroleum and natural gas, refining and sales of
petroleum products sales of chemical products. Sinopec Corp. is listed in Hong Kong, New York,
London and Shanghai.
Sinopec Corp. is the second largest producer of crude oil and natural gas in China. We produced
296.8 million barrels of crude oil and 293.06 billion cubic feet of natural gas in 2008. By the end of
2008, its proved reserves of crude oil and natural gas were 4,001 million barrels of oil.
equivalent. The exploration and production segment achieved steady growth in its oil and gas
production in 2008, generating an operating profit of RMB 66.6 billion, an increase of 36.5% year on
year.
China National Offshore Oil Corporation (CNOOC)
The Group is China's largest producer of offshore crude oil and natural gas and one of the largest
independent oil and gas exploration and production companies in the world. The Group mainly
engages in oil and natural gas exploration, development, production and sales.
CNOOC was established in 1982 for the purpose of administering offshore petroleum operations with
foreign entities. Today CNOOC maintains exclusive rights to offshore petroleum exploration and
production, although in 2002 it spun off oilfield services to China Oilfield Service, Ltd. (COSL). While
the spin-off is now listed on the Hong Kong stock exchange, the Chinese government maintains
majority control of COSL.
The Group has four major production areas in offshore China, which are Bohai Bay, Western South
China Sea, Eastern South China Sea and East China Sea. In addition, it is one of the largest offshore
crude oil producers in Indonesia. The Group also has upstream assets in Nigeria, Australia and some
other countries.

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7

China Zhenhua Oil Co., Ltd, (ZhenHua Oil)
ZhenHua Oil is a wholly owned subsidiary of North China Industrial Group (NORINCO). The
company is an international oil company incorporated in China. Since its establishment,
ZhenHua Oil has devoted itself to meeting the growing domestic demand for crude oil and
oil products. Over the years, ZhenHua Oil has acquired and operated several overseas
assets in oil and gas exploration and production and provided relevant services to its
domestic clients. The company is supported by the Chinese Government to engage in the
overseas investment, oil and gas exploration & production, as well as international oil trade
and petrochemical sector.
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7
National Oil Companies in India
Oil & Natural Gas Commission (ONGC)

Oil and Natural Gas Corporation Limited (ONGC) (incorporated on 23 June 1993) is a state-
owned oil and gas company in India. It is a Fortune Global 500 company ranked 152nd, and
contributes 77% of India's crude oil production and 81% of India's natural gas production. It
is the highest profit making corporation in India.
ONGC is one of Asia's largest and most active companies involved in exploration and
production of oil. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary
basins of India. It produces about 30% of India's crude oil requirement. It owns and operates
more than 11,000 kilometres of pipelines in India.
Indian Oil Corporation (IOC)

Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs.
271,074 crore and profit of Rs. 10,221 crore for the year 2009-10.
IndianOil is the highest ranked Indian company in the latest Fortune Global 500 listings,
ranked at the 125th position. The company mainly participates in the downstream sector. It
is now expanding its presence in the exploration and production sector by investing in oil &
gas fields worldwide.
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7
National Oil Companies in India
Hindustan Petroleum Corporation Limited (HPCL)

HPCL participates mainly in the downstream sector. Opportunities are being explored to
access new revenue streams, and augment downstream businesses. Accordingly, HPCL
has ventured in Upstream activities (Exploration and Production).
HPCL, in partnership with ICICI and HDFC, formed Prize Petroleum, a Joint Venture E&P
Company for participating in exploration and production of hydrocarbons.
Bharat Petroleum Corporation Limited (BPCL)
Bharat Petroleum main business activities are in the downstream sector. Considering the
need for a focused approach for E&P activities and implementation of the investment plans
of BPCL at a quicker pace, a wholly owned subsidiary company of BPCL, by the name
Bharat PetroResources Limited (BPRL) was incorporated in October 2006, with the
objective of carrying out Exploration and Production activities.
Oil India Limited (OIL)
OIL is a large state-owned oil and gas company in India under the administrative control of
the Ministry of Petroleum and Natural Gas of the Government of India. OIL is engaged in the
business of exploration, development and production of crude oil and natural gas,
transportation of crude oil and production of liquid petroleum gas.
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7
Privately Owned Oil Companies

Reliance Industries Limited (RIL)
The Reliance Group is India's largest private sector enterprise, with businesses in the
energy and materials value chain. Group's annual revenues are in excess of US$ 44
billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India.
The Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and
chemicals), textiles, retail and special economic zones.
RILs portfolio consists of 29 exploration blocks. Also, RIL holds 30% interest in PMT
fields. Total domestic oil and gas exploration and production acreage amounts to
290,633 sq. kms.
Essar Oil
Essar Oils Exploration and Production business has participating interests in several
hydrocarbon blocks for exploration and production of oil and gas. This includes the
Ratna and R-Series blocks on Bombay High, and an E&P block in Mehsana, Gujarat,
which has currently started commercial production. It has also been awarded a Coal
Bed Methane (CBM) block at Raniganj in West Bengal, and two more E&P blocks in
Assam, India. The overseas E&P assets include three onshore oil and gas blocks in
Madagascar, Africa, and one offshore block each in Vietnam and Nigeria.
9836-14 110
7
National oil companies (NOCs) dominate the ASEAN upstream sector. International oil companies (OICs) have production
sharing contracts (PSCs) and partner with the NOCs to explore and develop oil & gas resources in the region.
National Oil Companies in ASEAN
Petroleum Nasional Berhad (PETRONAS)

PETRONAS is a Malaysian government -owned oil and gas company that was founded on August
17, 1974. Wholly owned by the Government, the corporation is vested with the entire oil and gas
resources in Malaysia and is entrusted with the responsibility of developing and adding value to
these resources. Petronas is ranked among Fortune Global 500's largest corporations in the
world. Petronas ranks high amongst the most profitable companies in Asia and the world.
Since its incorporation, Petronas has grown to be an integrated international oil and gas company
with business interests in more than 31 countries. The Petronas Group comprises of 103 wholly
owned subsidiaries, 19 partly owned outfits and 57 associated companies. The Financial Times
has identified Petronas as one of the "new seven sisters - the most influential and mainly state-
owned national oil and gas companies from countries outside the OECD.
The Group is engaged in a wide spectrum of petroleum activities, including upstream exploration
and production of oil and gas to downstream oil refining; marketing and distribution of petroleum
products; trading; gas processing and liquefaction; gas transmission pipeline network operations;
marketing of liquefied natural gas; petrochemical manufacturing and marketing; shipping;
automotive engineering; and property investment.
9836-14 111
7
Perusahaan Tambang Minyak Negara (PERTAMINA)

Pertamina is an Indonesian government-owned corporation which extracts and refines the
country's oil and gas reserves. It was created in August 1968 by the merger of Pertamin
(established 1961) and Permina (established 1957).
Pertamina is the world's largest producer and exporter of Liquefied Natural Gas (LNG).
In 2003 Pertamina legally became PT. Pertamina (Persero), as per the enactment of
Government Regulation No.31/2003. Pertamina is now under the coordinator of the State
Minister of State-owned Enterprises.
Like other contractors, Pertamina holds Cooperation Contract to Oil and Gas Regulatory
Body. With its transformation into a limited liability company, Pertamina has become a
business entity with the main target of making a profit.
9836-14 112
7
PTT Exploration and Production Public Company Ltd

PTTEP is a national petroleum exploration and production company dedicating to provide a sustainable petroleum
supply to Thailand and the countries we operate as well to bring in foreign exchange earnings to our country.
A top-ten publicly-listed company in the Stock Exchange of Thailand, PTTEP operates more than 40 projects around
the world and has a workforce of over 3,000.
PTTEP has invested in 44 E&P activities and 4 investments in Thailand, Malaysia, Indonesia, Cambodia, Myanmar,
Vietnam, Oman, Iran, Egypt, Algeria, Bahrain, Bangladesh, Australia and New Zealand.
Vietnam Oil & Gas Group (PetroVietnam )

The Vietnam Oil and Gas Group is the state-run National Oil and Gas Group under the management of Ministry of
Industry and Trade and assigned to undertake all activities related to the discovery, exploitation and value-generation
of the oil and gas resources of Vietnam. The group has the international trading name PetroVietnam.
Petro Vietnam currently includes many member companies and joint-venture companies with their trading activities
covering all fields of the oil and gas industry of Vietnam, such as exploration, exploitation, storage, transportation,
processing and delivery of oil and gas products, as well as commercial, financial and oil insurance.
Besides its domestic operations, PetroVietnam also is involved in some exploration and exploitation projects of oil and
gas in Malaysia, Indonesia, Algeria, and Iraq.
9836-14 113
7
Cambodia National Petroleum Authority
Oversees exploration activities in Cambodia.
Philippines National Oil Company (PNOC)

PNOC serves as the key institution in the exploration development and utilization of
indigenous energy sources. Developments in the country as well as the global front make it
imperative for the company to get more involved in new and renewable energy activities and
projects.
The Philippine National Oil Company is back in the geothermal energy business, as it was
awarded a geothermal exploration contract in Feb 2010 by the Department of Energy to
develop the Mount Isarog volcanic chain in Camarines Sur.
PNOC Exploration Corporation (PNOC-EC) is the upstream oil and gas subsidiary of PNOC.
Its nature of operations include exploration, development, utilization, and marketing of oil
and gas and other viable energy resources.
9836-14 114
7

Brunei National Petroleum Company Sdn Bhd - A Private Limited Company, wholly-owned by
the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam through the
Prime Ministers Corporation.
Petroleum Brunei has all mineral rights in four blocks with Brunei. The four blocks jointly comprise a
total area of approximately 15,300 sq kms. Petroleum Brunei is also tasked with supervising and
regulating petroleum operations within these areas.
MOGE Myanma Oil & Gas Enterprise (MOGE)

Myanmar is one of the world's oldest oil producers, exporting its first barrel in 1853. Rangoon Oil
Company, the first foreign oil company to drill in the country, was created in 1871. Between 1886
and 1963, the country's oil industry was dominated by Burmah Oil Company (BOC), which
discovered the Ychaugyaung field in 1887 and the Chauk field in 1902. Both are still in production.
The oil and gas industry was nationalized after a socialist-leaning military regime seized power in
1962.
Myanma Oil and Gas Enterprise (MOGE), created in 1963, is responsible for oil and gas exploration
and production, as well as domestic gas transmission through a 1,200-mile onshore pipeline grid.
Myanmars oil output is small and gas is taking over from oil. Myanmar produces around 180, 000
barrels of oil equivalent per day, of which 90% is accounted for by gas.
9836-14 115
7
Oil Companies in ASEAN
Brunei Shell Petroleum (BSP), a joint venture owned in equal shares by the Brunei Government
and the Royal Dutch/Shell group of companies, is the chief oil and gas production company in
Brunei.
Vietsovpetro: Joint venture between Petrovietnam and Russian OAO Zarubezhneft Vietsovpetro
has produced more185 million tons of crude oil from White Tiger, Dragon and Big Bear oilfields;
more 21 billion m3 of associated gas and LPG has been gathered and transported ashore. 80% of
Vietnams produced oil & gas comes from Vietsovpetros operations.
9836-14 116
7
Oil Companies in Australia

BHP Billiton (ASX code: BHP) is the world's largest mining company. It is also the largest
company in Australia by market capitalisation.
The company began petroleum exploration in the 1960s with discoveries in Bass Strait. BHP
Billiton Petroleum produced more than 376,000 barrels per day of oil equivalent (boe) in 2009,
maintaining a 9 percent annual growth rate for production for every year since fiscal year 2007.
Over the next several years, BHP Billiton Petroleum exploration will focus on drilling high-impact
wells across a global portfolio, including the Gulf of Mexico, Malaysia, Australia, the Falklands,
and Canada, while continuing to target new opportunities
Santos Limited (ASX code: STO) is one of the Australias leading gas producers. The company
today is the largest producer of natural gas to the Australian domestic market, supplying 18
percent of the nations gas needs. Santos has also developed major oil and liquids businesses in
Australia and operates in all mainland Australian States and the Northern Territory.
From this base, Santos is pursuing a transformational LNG strategy with interests in four LNG
projects. This strategy is led by the cornerstone GLNG project in Queensland a leading project
in converting CSG into LNG.
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7

Woodside Petroleum Ltd (ASX code: WPL) is Australias largest publicly traded oil & gas
exploration and production company and one of the worlds leading producers of LNG. Woodside
operates the A$27 billion North West Shelf project, which in 2009 completed 25 years of natural
gas production and 20 years of LNG production.
Woodsides production of LNG continues to grow, with the Pluto foundation project on track for
first gas by end 2010, with first LNG in early 2011 contingent on a productive industrial relations
environment.
Woodside is planning for an expansion of the Pluto project, and is seeking to develop a further
two LNG projects Browse in Australias Kimberley region and Sunrise off the northern coast.
Woodside also maintains a portfolio of non-LNG projects (natural gas, LPG, condensate and oil
for customers in Australia and elsewhere).
BP Australias current exploration and production activities are predominantly focused on the
North West Shelf Venture, which accounts for 80 percent of Australias LNG production and
almost 25 percent of Australias crude oil production. Exploration of the North West Shelf Venture
(NWSV) leases began in 1963. The joint venture includes some of the world's largest oil
companies, such as BP, Shell and Chevron and is operated by Woodside Energy. Significant gas
and oil discoveries have made the NWSV Australias largest resource project with three main
areas of activity; LNG, domestic gas (or domgas) and oil production. BP has approximately a one-
sixth equity share interest in the NWS joint venture.
9836-14 118
7

Shell is the world's largest producer of LNG. Shells Australian LNG projects contribute
substantially to Shell's global LNG capacity which has more than doubled since 1989. Shell's
vision for its gas business in Australia is to substantially grow its equity in LNG production which is
currently around 2 million tonnes per annum (mtpa).
At present, Shell is involved in a number of major gas projects, mainly off the north-west coast of
Australia, between Dampier, Western Australia, and Darwin, Northern Territory. These include
interests in the North West Shelf project, the Gorgon joint venture, the Sunrise joint venture, the
Evans Shoal joint venture and the Browse (Brecknock Calliance Torosa - BCT) joint venture. Shell
also has a number of company-operated exploration interests in the Browse Basin.
ExxonMobil Australia has had a significant role in the development of Australias oil and gas
resources and has a business history in this country stretching back more than 110 years.
ExxonMobil is one of Australias largest oil and gas producers. The companys activities cover
exploration and production of oil and gas, petroleum refining and marketing of fuels (including
natural gas), lubricants, bitumen and chemical products. Since 1969, ExxonMobil subsidiary Esso
Australia has operated the Bass Strait offshore oil and gas fields and associated production and
processing facilities. ExxonMobil's activities in Western Australia include the Gorgon LNG Project
and Scarborough gas field.
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Oil Companies in New Zealand

New Zealand Oil & Gas Limited (NZOG) is an independent, Wellington-based exploration and
production company listed on both the New Zealand and Australian stock exchanges.
NZOG has two key assets (Tui and Kupe), two significant investments (Pike River and Pan
Pacific), a promising exploration portfolio and is pursuing an ambitious growth strategy.
Horizon Oil Limited (Horizon Oil) is an Australia-based company, engaged in exploration,

development and production of petroleum. It operates in four segments: New Zealand
development, which produces crude oil from the Maari field, located offshore New Zealand; New
Zealand exploration, which involves exploration and evaluation of hydrocarbons in two offshore
permit areas, PEP 38413 and PEP 51313; China exploration, which is involved in the exploration
and evaluation of hydrocarbons in one permit area, Block 22/12, and Papua New Guinea (PNG)
exploration, which is involved in the exploration and evaluation of hydrocarbons in two onshore
permit areas, PRL 4 and PRL 5.
9836-14 120
7

OMV New Zealand Limited is a wholly owned subsidiary of OMV Aktiengesellschaft, Austrias
largest individual listed company and the leading oil and gas group in Central and Eastern
Europe. OMV has been present in the New Zealand oil and gas industry since 2002 and is
committed to a long-term investment in the region.
OMV New Zealand owns a 10% interest in the Maui gas field, a 26% interest in the Pohokura
gas/condensate field, a 69% interest in the Maari oil field and interests in a further seven offshore
exploration/appraisal permits, including the Great South Basin. OMV New Zealand is the Operator
of the Maari offshore oil field development project in Petroleum Mining Permit 38160.
Cue Energy Resources Limited is an oil and gas exploration and production company with a focus
on SE Asia and Australasia. The company has petroleum assets in Papua New Guinea,
Indonesia, New Zealand and Australia. In New Zealand, the company has interests in the Maari
field.
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7
Established in 2000, Greymouth Petroleum is one of the few fully integrated New Zealand owned and
operated oil and gas production and exploration companies in New Zealand.
Greymouth holds a significant suite of oil and gas development and exploration properties in New
Zealand (the Taranaki Basin and Great South Basins).
In New Zealand, Greymouth (and its operating company affiliates, Bridge Petroleum and Petrochem)
engages in the production, development, and exploration for oil and gas reserves.
The Greymouth Group ranks second amongst New Zealand owned, privately held petroleum
production companies when measured in barrels of oil equivalent produced per day (the largest is a
subsidy of the Todd Corporation); and in the top ten amongst New Zealand and foreign-owned oil
production companies with New Zealand oil and gas production.
AWE Limited is an Australian based oil and gas exploration and production company. AWE currently
has oil and gas interests in Australia, New Zealand, Indonesia, Yemen and Argentina, and is actively
reviewing additional growth opportunities.
AWE producing asset in New Zealand are the Tui oil fields, offshore Taranaki basin.
In early 2006, AWE acquired 42.5% in the Tui Area oil project and some additional oil exploration
acreage in the offshore Taranaki basin. The Tui Area oil project started producing in July 2007 and by
June 2009 had produced approximately 28 million barrels of oil.
Exploration opportunities in New Zealand in the Taranaki basin are being pursued with a view to
adding to the reserves base of the Tui project or to discover and develop separate, stand alone fields.
9836-14 122
8 ABOUT FROST & SULLIVAN
123
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Who is Frost & Sullivan
The Growth Consulting Company
Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making
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Developers of the Growth Excellence Matrix industry leading growth positioning tool for corporate
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Asia Pacific Oil & Gas Upstream

Sector Overview and Developments

Asia Pacific Sales Manager

Frost & Sullivan

100 Beach Road

#29-01/11, Shaw Tower

8 ABOUT FROST & SULLIVAN 123

Exploration Phase Development Phase Production Phase Abandonment Phase

Products Crude oil and

Source: Compiled by Frost & Sullivan

China: Oil 14.8 tmB

India: Oil 5.8 tmB Vietnam: Oil 4.5 tmB

The Asia Pacific (APAC) is

Shwe Gas Phu Khanh

Gulf of Kikeh 700 mmboe

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Malaysia Thailand Joint Development Area

PM3 Commercial Arrangement Area (Malaysia Vietnam)

Field Unitisation (Malaysia Brunei)

Tripartite Agreement (Malaysia-Vietnam-Indonesia)

Source: Compiled by Frost & Sullivan

Australia has proven oil reserves of 1.6 billion barrels.

Source: Compiled by Frost & Sullivan

Table of Proven Reserves; Australia (2009)

Crude Oil Condensate Natural Gas

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Katakai Gas Field

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

EXPLORATION & DEVELOPMENT TRENDS:

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

70% of offshore acreage is in deepwater

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Deepwater Potential: Major Gas discoveries in Kutei

Thrust from Government for faster development of gas

Source: Planning Dept, Govt of Indonesia; Compiled by Frost & Sullivan

Historically, discovery rates in Indonesia have been high both

Source: Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Arthit (Blocks Coastal Energy has approval for

Source: News reports; Compiled by Frost & Sullivan

Source: Compiled by Frost & Sullivan

Song Hong Basin:

Source: PETROVIETNAM; Compiled by Frost & Sullivan

Chim Sao Oilfield, Vietnam

Source: Compiled by Frost & Sullivan

Revenues from Upstream Operations in Australia

BHP Billiton A$5.9 billion for the period 2008-2009

Woodside Petroleum A$4.35 billion for the period 2009

ExxonMobil Australia A$2.43 billion for the period 2007

Shell Australia A$2.35 billion for the period 2008

Santos Limited A$2.34 billion for the period 2009

Origin Energy A$516 million for the period 2008-2009

Source: Compiled by Frost & Sullivan

Source: Dept of Industry & Resources; Compiled by Frost & Sullivan

Gorgon Field Development: Reinga Basin Opened for Exploration

Source: Compiled by Frost & Sullivan