Tullow in AFRICABuilding a balanced portfolio of Exploration and Production Assets

NOT AN OFFICIAL UNCTAD RECORD

2004 - A Landmark Year for 18 year old Tullow Oil Over $1 billion on acquisitions

– Energy Africa, Schooner and Ketch (North Sea Gas Fields) New organisation structure

– COO: Production and Development, five business units– Exploration Director, enhanced exploration focus– EHS/CSR policies aligned across enlarged group

Exploration success – Discoveries in Bangladesh– “Snuggle” exploration in Gabon, Equatorial Guinea and the UK

Quality assets– Current working interest production over 56,000 boepd

Quality reserves– 326 mmboe total reserves, 173 mmboe commercial reserves

Focused growth strategy

– Africa, NW Europe, South Asia

1

The 2005 Tullow “footprint”

Africa

South Asia

NW Europe

3 core areas (operator in all 3)– Africa – NW Europe– South Asia

16 Countries, 12 in Africa

90 Licences

25 producing fields

Strategic focus on:– Oil in West Africa – Gas in the UK SNS– Growth in South Asia

Major offices London (HQ), Dublin, Cape Town. Many regional offices.

C. 200 employees

Market capitalisation c. £1.1 bn

2

Ongoing active portfolio management Focus on those assets where we can add value

through:– Material influence– Upside potential– Operational innovation

Strategic objectives:– Build strong positions in core areas– Consolidate niche positions in developing regions– Exit where we can’t achieve material influence

Continually reviewing our portfolio versus long term growth:

– Since year end disposed of Alba/Caledonia and offshore Congo– Headline consideration of US$184 m

3

SOME NUMBERS

Balanced growth is the key

Building a balanced portfolio of Exploration and Production Assets

Revenue Balance

2004: US$430 million

Production Balance

2004: 40,600 boepd

Product Balance

2004: US$430 million

Reserves Balance

2004: 326 million mmboe

5

Africa 47%

Africa 47%

2005 Development and Exploration Spending

Development Exploration Total

US$ Development Exploration Total

Africa 135.0 48.0 183.0

NW Europe 40.0 23.0 63.0

Asia 15.0 5.0 20.0

TOTAL 190.0 76.0 266.0

11

Africa Africa Africa

OPERATIONS REVIEW

Recent Highlights2004 was an exceptional year for Tullow’s production and

development businesses

Acquisitions: Energy Africa, Schooner & Ketch, Orwell, Horne & Wren Integration: Reorganisation to Business Unit structure

Africa Production increased to over 30,000 bopd Reserves: replacement 250% Developments: M’Boundi expansion, West Espoir and Okume sanction Kudu: JDA signed July; conceptual engineering completed

UK Opex: Bacton/Hewett 25% reduction, Thames export up >100% Development: CMSIII completed, Horne & Wren and Munro underway Operatorship: positioned to increase to 60% of production

South Asia Bangladesh: Bangora and Lalmai gas field discoveries Pakistan: strategic review and progress on Chachar field development

13

Tullow’s Africa Strategy

Africa

Capitalise on 18 years African experience both onshore and

offshore

Pursue opportunities that arise as majors exit non-material

assets

Target near-shore operated development projects

Extract additional value from existing assets with operational

innovation

“Snuggle” exploration balanced with higher impact/risk prospects

Selective acquisitions within our core areas

Active portfolio management

15

Tullow in GabonProduction Now over 19,000 bopd

Drilling Niungo – up to 8 further infill

wells Tchatamba – further sidetrack Etame – further development

wells Up to 3 operated exploration

wells

Developments Avouma development planned Tchatamba sour oil study

….leverage UK SNS experience and operating capability…. 0 50 100km

Exploration Licence

Back In R ights

Exploitation / ProductionLicence

L ib rev i lle

P o rt G e n t il GABON

EQUATORIALGUINEA

KIARSSEN YM ARIN

AZO BE

LIM AND E

NZIEM BO U

NIUNG O

EC HIRA

M AYON AMI VERA

TCHATAM BA

M ’P o lo

Etame Expl.

G RYPHO NM ARIN

AKO UM

TURNIX

ABLETTE

ETAM E

18

Tullow in Congo M’Boundi

Development Production now >35,000 bopd Up to 22 further development

wells Pilot water and gas injection

projects Facilities expansion to 60,000

bopd

Field Areas and Reserves

Area 1 Drilled and mapped on 3D seismic 20 mmbo 2P reserves Additional 9 mmbo 3P reserves

Area 2 Undrilled, new 3D seismic

acquired Potential to add further 27 mmbo

19

Tullow in Côte d’IvoireProduction East Espoir increase to >25,000

bopd

Drilling 4 East Espoir infill wells

underway West Espoir drilling starts Q4 05

West Espoir Development

Production 10,500bopd

First oil Q2 06

Total Capex of $190m

Modifications to FPSO underway Wellhead tower installation Q4

05

Acajou Development Review development options

CHANGE PHOTO

20

Tullow in Equatorial GuineaProduction Ceiba production 40,000

bopd

Drilling Up to 8 infill wells on Ceiba

Okume Development

Production 60,000bopd First oil end 06

Total capex of $1.1 bn 2 deepwater TLP’s, design

underway Shallow water Central

Processing Facility with 3 satellite platforms

2006 installation and drilling

CHANGE PHOTO

Design of the Okume Development

21

Tullow in Namibia (Kudu Project)Phase 1: Gas to power

800 MW power plant with c. 110 mmscfd gas supply

Net Reserves – 780bcf

First Gas - 2009 Complete FEED studies,

offshore pipeline and well surveys

Finalise GSA/PPA discussions Finalise partnering and

funding

Phase 2

Upside net reserves of 4tcf

Complete planning for 2006 appraisal drilling

Development concepts under review

– LNG, GTP Phase 2, GTL

CHANGE PHOTO

22

Exploration Review

Africa Exploration2004 Review Energy Africa / Tullow integration 24 licences in 11 countries Strong combined synergies Strategic focus on West Africa

2005 OutlookGabon 5 major licences 3 back-ins 4 wells to be drilledIvorian-Ghanaian Basin Begin work on CI-107/108 Target new ventureMauritania Further Block 2 well in 06 2 prospects in Block 1, 150

mmbbl+ each Block 1 – 1 well in 05Uganda 2x 500mmbl Albertine Basin

prospects

Na m ibia

C ongoEq. Guinea

IvoryC oa st

Egypt

M orocco

M a uritania

U ganda

C am eroon

Gabon

S enegal

ATLAN TICO C EA N

IN D IANO C EA N

MEDITERRANEAN SEA

D elta ic sa g b as in

In terio r frac tu re b as in

F o re lan d b as in

W ren c h b as in

M arg in a l sa g b as in

Tu llo w lic en c e a re a

18 years of experience in the region

27

Africa: Exploration Drilling Programme

41

Our unique characteristics Entrepreneurial spirit

– Creative and flexible approach to acquisitions and development African heritage and continued intense African focus

– First E&P project in Senegal (15 yrs), today in 12 African countries Strong relationships

– Work hard at being good employer, partner and operator Development focus

– Swift response to any development opportunities as they arise Diverse and quality portfolio

– Mix of oil and gas in mature and developing markets Active asset management

– Continually review portfolio in relation to our long term objectives Material influence

– Target material equity participation and aligned JV partnerships Financial capacity

– Conservative accounting, strong cash flow and healthy balance sheet

30

Who owns Tullow Oil?

Shareholder Analysis

Market Capitalisation ≈ US$ 2 bn

31

African 18%

African 18%