1

2010 Annual Meeting

23 April 2010

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

2

2010 Annual Meeting Agenda

2009 Performance Summary

2009 Financial Results

PNG LNG Project

Gas Expansion

Operations Review

Outlook

3

2009 Performance Summary

Highlight of 2009 was PNG LNG Project development decision:

Less than two years from FEED to Sanction

Transformational impact on Oil Search and PNG

ExxonMobil quality operator

Foundation for major LNG industry in PNG

Seven fold increase in proven and probable reserves, increasing from 67 mmboe to 567 mmboe, with significant further potential upside

NPAT of US$133.7 million, US$99.6m excluding PNG Government back-in and tax adjustments. Satisfactory result given commodity environment, with average oil price down 35%

Strong balance sheet with US$1.3 billion cash at year end, totalliquidity of US$1.6 billion (including line of credit). Sufficient for both PNG LNG equity contribution plus funding of T3/T4 gas exploration/ appraisal programme

4

Outstanding Safety Performance

Total Recordable Incidents (TRIs) of 1.16 in 2009

TR

I /

1,0

00

,00

0 H

ou

rs

0

2

4

6

8

10

12

14

1998 1999 2000 2001 2002 2003 2004 2005 2007

Oil Search

2006

Australian Companies (APPEA)

2008

InternationalCompanies

(OGP)

12.7

9.1 9.37.8

7.0 7.3

5.2

9.4

8.2

6.3 6.8

3.9 3.1 2.9 2.7 2.1

4.0

3.6

4.9

5.76.0

2009

8.5

10.69.8 10.7

5.8

1.7

4.7

2.4 2.31 2.05 1.162.04

5

Strong Five Year Share Price Performance

Annualised TSR for five years to end 2009 of 29.5%

Jan 05 Jul 05 Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08

Share price (rebased to OSH)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Jan 09 Jan 10Jul 09

Woodside

Santos

ASX 100

WTI oil

Oil Search

6

Consistent Total Shareholder Returns (TSR)

Source: IRESS

Oil Search ranked No 1 in ASX 100 for TSR over five yearsto 31 December 2009

ASX 100 Index Median Company OSH performance# Ranking based on ASX 100 composition at the beginning of the reference period.

-5

0

10

20

30

40

1 Year 3 Year 5 Year

% T

SR

1st

3rd

OSH Ranking #

42nd

7

Future Value Growth

Driven by :-PNG LNG deliveryProject optimisationFurther LNG train developmentReserve growth and exploration success

Comprehensive programmes to delivervalue through to PNG LNG first gas

8

2009Financial Results

9

2009 Financial Performance

(US$’m)RevenueCash ExpensesEBITDAXNon-cash itemsExploration ExpenseInterest income/(expense)Pre-tax ProfitTaxNPATCore Profit

814.3(116.3)

698.1(127.2)(91.2)

6.1520.3

(206.9)313.4

240.0**

20082009

512.2(102.8)

409.4(105.4)(75.7)(3.3)

239.8(106.2)

133.799.6*

-37%

-41%

-59%

-54%

Revenue and profit impacted by 35% decline in realised oil prices to $65.40/bbl and 7% lower oil sales due to underlying field decline rates and sale of MENA producing assets

* Excludes PNG Government licence back-in adjustments and one-off tax credit** Excludes net profit sale of MENA assets/JV licence sale profit adjustment and impairment losses

10

2009 EBIT Drivers

EBIT decline driven by fall in oil prices, PNG field production decline and sale of MENA assets

0

100

200

300

500 479.6

20

08

EB

IT

228.2

20

09

E

BIT

(258.9)

15.513.5

Cash

O

pex

Exp

lora

tio

nExp

en

se

21.8

Am

ort

isati

on

(10.1)

Oth

er

US$m

400

Oil P

rice

Oil

Volu

mes

(33.2)

11

2009 Cash Flows

* Includes Company share of JV cash balances

Openi

ng

Cash*

Opera

ting

Inve

stin

g

Fina

ncin

g

Closing

Cash*

535535

284284

851851

1,2881,288

US$’m

0

250

500

750

1000

1250

1500

(382)(382)

Operating cashflow included US$79m of tax paid (inclusive of prior period tax recoveries)Investing cash outflows included US$139m on production, US$324m on exploration & evaluation, including PNG LNG expenditureFinancing included US$900m of proceeds from share placement, SPP and underwritten DRP

12

US$1.39 billion in cash at end March 2010

Cash invested with highly rated bank counterparties

US$348 million available from term revolving facility, nil drawn down

US$391 million drawn down from PNG LNG Project finance facility on 31 March (including US$303.5m debt clawback relating to past expenditures)

No oil hedging undertaken during 2009 or currently in place

Treasury Update

13

PNG LNG Project

14

PNG LNG Project

World class ProjectAligned joint venture ExxonMobil Operator –excellent track recordSupportive Government and communitiesProvides infrastructure for future growthTransformational for Oil Search and PNG

15

PNG LNG Projectthe road to sanction

2008Signed JOA, aligning JV partners in MarchSigned Gas Agreement with Govt in MayCommenced FEED in MayCommenced marketing discussions late 2008Developed financing plan

2009Submitted EIS in JanuarySigned UBSA in MaySigned HOAsCommenced early worksEIS approved in OctoberCompleted FEED, LNG plant capacity increased to 6.6 MTPA

16

PNG LNG Projectthe road to sanction

December 2009Completed LBSAs Signed 3 SPAs with TEPCO, Osaka Gas and SinopecDevelopment approval 8 December 2009EPC contracts awarded 9 December 2009Financing documents signed 15 December 2009 with ECAs, Commercial Banks and ExxonMobil for $14 billion – world’s largest project financingGovernment offered and Project accepted all development licencesGovernment paid past costs for equity back-in to new development licences

March 2010Signed final SPA with CPC – fully contractedLNG vessel charter contracts signed with Mitsui OSK LinesMinor legislation amendments12 March – Financial Close

17

PNG LNG Project

Construction has commenced (roads, bridges, camps, site preparation and training facilities). First LNG sales expected 2014

Investment for initial phase estimated at US$15 billion

Mobilisation by key contractors of people and equipment underway

Mix of fixed price/variable price contracts

Operator ExxonMobil has excellent record of delivering projects on time, on budget

18

Proposed PNG LNG Future Activities

2010 2011 2012 2013 2014

FinancialClose

• Continued early works• Detailed design

• Order long leads and place purchase orders• Open supply routes

• Contractor mobilisation• Commence Associated Gas

(AG) construction

• Pipe lay (Kutubu to Hides)

• Ongoing drilling• Complete Hides plant• Commission LNG plant

with Kutubu gas

• Ongoing procurement and mobilisation

• Airfield construction• Drilling mobilisation

• Start offshore pipeline construction

•Onshore line clearing• Start LNG equipment

installation

First Gas from Train 1,

then Train 2

• Complete AG • Commence

onshore pipe lay (Kutubu to Omati)

• Complete offshore pipe lay

• Start Hides plant installation

19

GasGrowth

20

PNG Gas Growth

Key strategic priority for Oil Search is to grow gas business in PNGLNG remains optimum commercialisation route for additional gas PNG LNG will provide infrastructure and capacity to facilitate expansion and provide excellent cost structure:

Use of capacity in pipeline, jetty, tanks and servicesTrained local work force

Government is supportive of future gas growthPace of gas growth will be determined by:

Resource aggregation/explorationJoint Venture alignmentMarket access

21

PNG Gas Growth Activities

Two largely independent core gas development streams:

PNG LNG dedicated fieldsMaterial core reserves

Proven (1P) 300 mmboe (OSH share) – all sold Proven & probable (2P) 500 mmboe (OSH share)

Focus on moving 2P into 1P contractible category through field development optimisation and further appraisalStrong partner alignment

Other fields and explorationExisting proven & probable resources (2C) of 281 mmboe (OSH share), still to be commercialised Programme to appraise these discoveries and explore for new gas underwayDeveloping material portfolio ex PNG LNG

Objective is to prove up sufficient proven contractible reserves to underwrite Trains 3 and 4

22

Requirements for LNG train growth in PNG

OSH Operated LicenceOSH Interest LicencePetroleum Development LicencePetroleum Retention LicenceLicence ApplicationOil FieldGas FieldOil & Gas FieldOil PipelineProposed Gas Pipeline

Kumul Terminal

PRL01

PPL234

PRL08PPL240

PRL03

PRL11

PRL12

PPL239

PDL1

PPL233

PPL190

PPL219

PRL10

PRL02

PDL2

PDL5PDL6

PDL4

PDL3

PRL09

142°E

9°S

7°S

145°E50km

APDL14

PPL260

AngoreJuhaHides

Moran

Agogo Kutubu

Gobe Main

PNG LNG ProjectGas Resources

Mananda Attic

Flinders

Barikewa Deep

Huria

Hedinia FW

Lead 7

Korka

Gobe Deep

Hides FW

Pasca B

ExplorationGas Resources

Pandora

Barikewa

Uramu

P’nyang

Kimu

Juha North

SE Gobe

Non PNG LNG Gas Resources

3rd Train Threshold

0

5

10

15

20

25tcf

PNG LNG3C

Upside

PNG LNG

Base Volume

2C

3C

Other Highlands JV Partner Resources

4th Train Threshold

2C

3C

Forelands &

Offshore Resources

Exploration

23

Circle areas proportional to reserves potential. Outer circle unrisked potential, inner circle risked potential

Red = GasOrange = CondensateGreen = Oil

Proposed 2010/11 PNG Gas Exploration

PRL01

PPL234

PRL08PPL240

PRL03

PRL11

PDL7

PPL239

PDL1

PPL190

PPL219

PRL10

PRL02

PDL2

PDL4

PDL3

PRL09

PPL244

9°S

6°S

145°E50km

Kumul Terminal

PDL6PDL5

APRL14

PPL260

APPL249

APPL250

PPL

233

PDL9PDL8

142°E

Flinders

Barikewa Deep

KorkaHuria (PDL 8)

Mananda FW

Mananda Attic

CBM test

24

Operations Review

25

PNG Oil Production (gross)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Oil P

rod

uct

ion

(B

op

d)

P10

P50

P90

Pre-OSHDecline

Added over55mmstbcompared

to Chevron

26

2009 Production Performance

Excellent safety performance2009 production of 8.12 mmboe

Strong underlying performance in all fieldsTwo new rigs (103 and 104) operating throughout year with significant performance improvements

Total cash costs (inc corporate costs, FX) of US$12.99/boe, down 7% from 2008

Achieved despite 4% reduction in saleable oil volumes and inflationary environment in PNG

Production impact of recent drilling at Usano

0

2,000

4,000

6,000

8,000

10,000

12,000

1992

1994

1996

1998

2000

2002

2004

2006

2009

Oil Rate (bopd)

Usano Main Block

Usano East Block

UDT 7

UDT 11

UDT 8,9

UDT 10,12

27

Oil development drilling continues to add value

Since 2003, gross PNG proven (1P) oil reserves have increased by 51 mmbbl and proven and probable (2P) reserves by 37 mmbblDevelopment drilling has added 2P reserves at average cost of US$11.72/bbl Further opportunities exist to add reserves within field areas

PNG Oil Fields – Gross Ultimate Recoverable Reserves (pre-LNG)

1P

2P

440

460

480

500

520

540

560

Millio

ns

of

Barr

els

2003 2004 2005 2006 2007 2008 2009

28

ADT 2 – Opens up new play

ADT 2 Well Results:Proved new forelimb play in AgogoDigimu in fault compartment 1 is on production, flowing oil at 1,500-2,000 bopd3 zones in fault compartments 2 and 3 have flowed water and traces of oil3 sands in 2 deepest zones yet to be testedA second well in Agogo forelimb is being assessedSimilar plays along trend are being mapped

7”

ST3

ST1

2400

2600

2800

3200

OverturnedForelimb

Hangingwall

mTVD

Alene

Flowed oil

5”

ST23000 Yet to be tested

DigimuToro A

SW NE

Hedinia Sand

Toro B/C

Flowed water and traces of oil

29

Reserves & Resources31 December 2009

Six-fold increase in proven (1P) reserves, from 50 mmboe at end 2008 to 344 mmboe:

PNG LNG Project reserve booking of 301 mmboe2009 production of 8.1 mmboe Oil reserve additions at Kutubu, Gobe and SE Gobe of 2.4 mmboe

Seven-fold increase in proven & probable (2P) reserves, from 67 mmboe to 567 mmboe:

PNG LNG Project reserve booking of 505 mmboe2009 production of 8.1 mmboe Oil reserve additions at Kutubu, Gobe and SE Gobe of 2.8 mmboe

2C resources, comprising gas and associated liquids, of 281 mmboe at end 2009, compared to 886 mmboe at end 2008:

Adjustment of 79 mmboe, due to Government back-in, to PNG LNG, initial equity determination and field reserve changesPNG LNG Project reserves booking of 505 mmboeDecrease of 21 mmboe for revisions to certain fields’ 2C estimates and Government back-in

Total 2P and 2C reserves and resources of 848 mmboe

30

2010 Operations Outlook

Gas value driving revised operating framework:

Field reliability management

Gas conservation with minor oil production impact

Value-adding PNG production activities will continue in 2010, including 1 – 2 wells at Moran, appraisal of Agogo ADT 2 deep play and workover campaign in Kutubu, Moran, SE GobeOngoing focus on costs and capital efficiency following 2009 Operations ReviewAligning and maximising use of infrastructure to support LNG ProjectProduction outlook for 2010 of 7.2 – 7.4 mmboe, with incremental activity expected to flatten decline curve in 2011 -2013

31

Exploration Outlook

PNG:Exploration for gas – key to driving LNG expansion

Korka – 1.3 tcf mean, drilling ahead in PPL 260

Huria – seismic underway – PDL 8 / PRL 11

Additional oil focused exploration in 2010:Wasuma – discovered hydrocarbons in footwall. Discovery sub-commercial but confirms footwall play

Mananda Attic - 30 mmbbl mean in PPL 219, plus gas play to be drilled 4Q 2010

MENA:Focus on finding material oil and maximising asset value:

Evaluate commerciality of Shakal (Iraq), appraisal of Tubb’a & Al Meashar (Yemen) discoveries

Oil–focused drilling ongoing within Blocks 3 and 7 in Yemen, targeting 3D defined structuresSeismic in Kurdistan (K42 world class exploration province) and Tunisia to define drillable large structures

32

PNG 2010 Exploration Summary

PRL01

PPL234

PRL08PPL240

PRL03

PRL11

PDL7

PPL239

PDL1

PPL190

PPL219

PRL10

PRL02

PDL2

PDL4

PDL3

PRL09

PPL244

142°E

9°S

6°S

145°E50km

Kumul Terminal

PDL6PDL5

APRL14

PPL260

APPL249

APPL250

PPL

233

PDL9PDL8

Commitment

Discretionary

Future Commitment

Well Types

Prospect/Lead (POS%)Mean Oil Gross (mmstb)Mean Gas Gross (tcf)

Seismic

CommitmentDiscretionary

Permit 2D(distance)/3D(area)

Flinders (12.5%)1.0 tcf+

Korka (15%)1.3 tcf +

Mananda Attic (45%)30 mmstb

Mananda FW (10%)1.2 tcf +

PPL 234 3,000+km2

PDL 8/PRL 11 80km

PPL 233 55km

PDL 2 70km

33

MENA 2010 Exploration Summary

Commitment

Discretionary

Future Commitment

Well Types

Prospect/Lead (POS%)Mean Oil Gross (mmstb)Mean Gas Gross (bscf)

Seismic

CommitmentDiscretionary

Permit 2D(distance)/3D(area)

Sana’a Office

Dubai Office

Tajerouine

Le Kef

K42

Shakal

Block 7

Block 3

Taj. + Le Kef 600km

K42 200km

Shakal 50km

Jebel Milh (17%)28 mmstb

Block 3 & 7 400km

Al Meashar (20%)20 mmstb

Block 3/7 well,late 2010

34

Outlook

35

Outlook

Oil Search’s core business in excellent shape to drive further value growth over next 3 years

PNG LNG Project construction underwayExxonMobil quality operator for delivery

Contractors mobilising

Buyers secured, with pricing locked in

Finance secured, excellent package

Significant impact on PNG already being felt

PNG LNG is country and Company transformational

36

Active programmes to deliver in 2010/2011

PNG LNG field and development optimisation

Seismic acquisition over Angore, Huria

Future drilling

Onshore accelerated appraisal and exploration

Seismic over Barikewa,

Drilling of Korka, Mananda Attic, Huria, Barikewa Deep

CBM test in 2010

Gulf of Papua

3D seismic

Drill Flinders

Appraise Pandora

Selected acquisitions (PRL 1, PPL 244 and others)

Partner alignment (PNG LNG and others)

Oil Search has the financial strength to fund all activities

37

2010 Guidance Summary

Production: 7.2 – 7.4 mmboe. Incremental activity in 2011 – 2013 expected to flatten decline curve

Opex: US$16-18/boe Increase due to FX, PNG inflation, increased spend to improve reliability & extend life and relatively fixed cost base on lower production. In addition, accelerated focus on workovers to maximise oil recovery prior to gas blow downLikely to stabilise/decline in 2011

D,D & A: US$6-8/boe Decrease due to recognition of LNG reserves

Capex:Exploration – US$210m (80% in PNG, 20% in MENA)Production/Other – US$85m (inc corporate & other gas)PNG LNG – US$1,000 - 1,350m (inc capitalised interest & upfront fees)

38

Production Outlook

PNG LNG adds ~18 mmboe pa to OSH at plateau in 2015 onwards. 30 year Project life

T3 could add an additional ~9 mmboe pa, with T4 of similar magnitude

Net

Pro

du

ctio

n (

bo

ep

d)

0

10,000

20,000

30,000

40,000

50,000

60,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

LNG GasLNG Gas

PNG DevelopmentPNG Development

70,000

80,000

Potential T3 LNG GasPotential T3 LNG Gas

LNG CondensateLNG Condensate

90,000

Potential T3 LNG CondensatePotential T3 LNG Condensate

39

Summary

PNG LNG Project sanctioned and construction underway

Appraisal and exploration activity programme to prove up gas for T3/T4 commenced

Core oil production remains solid. Focus on life extension, reliability and gas conservation

A new value equation

Measured oil and gas exploration in PNG and MENA

Activities underwritten by strong balance sheet and liquidity to meet LNG obligations, T3/T4

40

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