23 June 2010Indonesia - Gajah Baru development update

June 2010 | Page 1

Forward looking statements

This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties.

A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by

these forward-looking statements.

June 2010 | Page 2

Gajah Baru project update

Contents• Natuna Sea Block A development overview• Gajah Baru development• Project Metrics• Accomplishments and Key Achievements• Key Dates and Overall Level 1 Schedule• Execution highlights• Project Graphics & Progress Photographs • Project Management Team (PMT)• Key Events for 2H 2010

June 2010 | Page 3

Natuna A Block development plan

Anoa / AGX Complex

Gajah Baru Hub

Domestic Gas Delivery – Batam (GSA3&4)

International Gas Delivery – Singapore (GSA2)

Gajah Puteri (future)

Pelikan, Naga, Iguana & Bison (future)

June 2010 | Page 4

Gajah Baru development overview

June 2010 | Page 5

EPCI summary and split in scope of work

Engineer, Procure, Construct & Install (EPCI) Contract is a joint venture between Saipem* and SMOE

• Saipem responsible for: • Engineering and procurement of materials and packaged equipment• Load out, transportation and installation of all components

• SMOE responsible for: • CPP Topsides, living quarters, flare boom & bridge• Offshore hook-up of all components and pre-commissioning

• Nippon Steel Batam (NSB) responsible for:• Wellhead Deck• Wellhead Jacket, Piles & Conductors• CPP Jacket & Piles

• Premier Oil responsible for commissioning with Contractor’s assistance

* Saipem consortium leader

June 2010 | Page 6

Project metrics

• Design Life – 20 years for Facilities, 50 Years for Pipeline

• Integrated Float-over Deck design, minimal Hook-Up

• Fabrication Durations• CPP Topsides = 18 months• Living Quarters = 13 months

• Component Weight• CPP Topsides – 8,000 tonnes (including 800 tonne LQ module)

• Design Output• 2 Turbocompressor packages supplied each with initially HP stage only and plinth for

future supplied LP stage – Initial HP stage sized to export MR at 1750 psia ( i.e. 2x100% versus MR).– Between 2012 / 2015 LP Stage added to plinth and capacity of combined HP/LP train reduced to

50% of MR

• 1 No. Turbocompressor package supplied initially with both HP and LP stages and train sized to export 50% of MR at 1750 psia from a suction pressure of 255 psia

June 2010 | Page 7

Key schedule dates

KEY MILESTONES

CONTRACTUAL MILESTONES

2009 2010 2011

Install WHPJacket & Deck

3Q

Delivery ofCPP Compressors

2Q

InstallExport Pipeline

2Q

Install CPPJacket & Deck

2Q

Delivery ofCPP Vessels

1Q

4Q4Q 3Q

FIRST GAS01 Oct 2011

WHP FacilityReady for Drilling

01 Oct 2010

MechanicalAcceptance15 Sep 2011

June 2010 | Page 8

Execution plan highlights

•Long Lead Item (LLI) procurement• Premier pre-purchased and then transferred nine orders including WHP Steel and CPP Compressors and Generators

and large Pressure Vessels

• Initially bid project at peak steel price and an overheated market• Re-bid as prices in excess of AFE limit, relaxed single yard requirement• Revised final price ~US$ 100 million lower

•Managing delay of award of contract • Maintained engineering with short listed bidders through final negotiations

•Close Government liaison on project approvals• GOI maintains certification process, bi-annual work plan & budget reviews, quarterly progress meetings at yards

•Highest local content – new benchmark >30%• Independent verification body audits underway

•Early installation of Wellhead Platform to allow early development drilling• Premier has extensive experience working with NSB yard, viz.

– AGX Compression Platform (2000-2001) and West Lobe WHP (2005-2006)– Both facilities delivered and installed on schedule

June 2010 | Page 9

Execution plan highlights

•Export Pipeline Tie-In to WNTS• To be undertaken to avoid interruption of gas export from Anoa

•PMT influenced EPCI contractors’ decision to proceed with Integrated Deck Float-over design as opposed to conventional module design

• Maximizes onshore pre-commissioning and consequently greatly reduces offshore Hook-Up duration

•PMT actively involved in initial equipment layout concepts• Including positioning of major pieces of equipment on Cellar and Mezzanine Decks

•PMT planning efforts have included the following:• Sequence of equipment erection including early identification of critical pieces required to be delivered before stacking

of deck panels• Thorough reviews of planned construction and outfitting of Technical Buildings• Providing assistance in defining pipe spool erection sequence on an area basis

•Premier stationed a Living Quarters specialist in Singapore to liaise with SM0E on 60 man LQ design

• Also reviewed procurement recommendations and • Ensured clash free interfaces between LQ and CPP Topsides

June 2010 | Page 10

Wellhead platform (WHP) 3D CADD model

Cellar Deck

Main Deck

Wellhead Control Panel Well Bay

June 2010 | Page 11

Wellhead platform (WHP) 3D CADD model

Well Bay Area (Plan) Well Bay Area (Elevation looking South)

June 2010 | Page 12

Gajah Baru – Wellhead platform (WHP)

Wellhead Deck~800 tonnes

Wellhead Jacket~1,500 tonnes

Piles & Conductors~1,200 tonnes

June 2010 | Page 13

Gajah Baru – Central processing platform (CPP)

CPP Topsides - ~8,000 tonnes• 3 x MAN Turbo Gas Compressors c/w Solar

Turbine drivers (GTCs)

• 2 x Solar Gas Turbine Generators (GTGs)

• 60 man Living Quarters

• Bridge linked to Wellhead Platform

Cellar Deck

Main Deck Flare Boom

Bridge toWHP

GTGs

GTCs

ACHEs

June 2010 | Page 14

Gajah Baru – Central processing platform (CPP)

Main Deck frame(to be stacked on Cellar Deck July 2010)

CPP Topsides ~8,000 tonnes

Cellar Deck frame and support columns

June 2010 | Page 15

Gajah Baru – Central processing platform (CPP)

CPP Jacket~4,800 tonnes

Piles~1,200 tonnes

June 2010 | Page 16

Gajah Baru – Central processing platform (CPP)

60 man living quarters

June 2010 | Page 17

Gajah Baru – Central processing platform (CPP)

60 man living quarters(~800 tonnes)

June 2010 | Page 18

Asian Hercules II heavy lift derrick barge

Lifting Capacity:3,200 tonnes

June 2010 | Page 19

“West Callisto” drill rig in Keppel FELS, Singapore

June 2010 | Page 20

Jack-Up rig drilling through wellhead platform

June 2010 | Page 21

Onshore receiving facilities (ORF) modifications status

• COPI supervised FEED with PT. WorleyParsons Indonesia (WPI) complete

• Long Lead Item (LLI) procurement orders ready to place• Two sole source vendors, Cameron & Mokveld for various valve & control

requirements (on hold - pending to results of SDP discussion)• EPCI Execution

• EPCI contract for the implementation of the ORF modification has been awarded to Punj Lloyd

• Surveillance Plan• Premier Oil has established a surveillance team to over view COPI progress,

cost control and schedule

June 2010 | Page 22

Incoming gas

June 2010 | Page 23

Overall ORF process facility

June 2010 | Page 24

Key events on Gajah Baru for 2H 2010

• Engineering will reach 90% in August• Procurement

• All WHP equipment & materials to be delivered by end of June• Majority of CPP major equipment will be delivered by July/August

• Fabrication• WHP Jacket will load out in July and sail away early September• WHP Deck will load out in August and sail away mid September• CPP Jacket fabrication – start Elevation Panel assembly/erection 25 June• CPP Topsides Main Deck stack 01 July• Transport and stacking of 60 man LQ on 15 December

• Installation• WHP Jacket installed 10 September and piled with conductors by 24 September• WHP Deck installed and ready for drilling 30 September

• Drilling – West Callisto drill rig mobilizing to field in October• Development drilling of five wells will take place over the monsoon season

June 2010 | Page 25www.premier-oil.com June 2010