Corporate Presentation

SapuraKencana Petroleum Berhad

May 2012

INVEST MALAYSIA 2012 29 30 MAY 2012

Emergence of Integrated Global O&G Services Provider

Integrated Global O&G Services Provider

Who We Are
Integrated upstream Oil & Gas service provider with capabilities in deepwater and marginal fields Listed on the Main Market of Bursa Malaysia Equity value of RM10.76Bn (US$3.6Bn)(1)(2), among the largest 30 companies by market capitalisation on Bursa Malaysia

Capabilities Across the Oil and Gas Value Chain

Field Services EPCIC EPC IPF Geotech & Maintenance Services Development and Production
Integrated Service Offerings with full Oilfield Development & Operations Capabilities

Marine Services

Drilling

Engineering, procurement and construction services

Installation and commissioning of pipelines and facilities

Provision of supporting offshore services (e.g. support vessels, diving & underwater services, ROVs etc.)

Provision of drilling rigs and services

Turbine repair & maintenance, petrol stations, retail solutions, general maintenance

Development, operation and maintenance of oil field production facilities

Note:

(1) SapuraKencana market cap based on closing price on 25 May 2012 : RM2.15 (2) Values converted to US dollars at a rate of US$1 : RM3 throughout this presentation, unless otherwise stated

Proven Integrated O&G Services Provider

Our Scope Typical lifecycle of an oil & gas field
Exploration Exploration Stage: 1) Seismic, Geophysical Studies 2) Drilling After Oil Discovery 13 months Development Stage: Engineering & Design Engineering & Design Engineering, Procurement & Construction EPCIC

Service Offerings
Marine Services

Operations

12 24 months Development

Offshore Infrastructure / Fabrication Starts

24 36 mths

Hook-up & Commissioning of Facilities Development Drilling

Marine Services

Drilling

Production

Lifetime of a Production Field

Platform Operations / Production Marine Services Maintenance & Servicing

One-stop integrated services provider spanning the typical lifecycle of an O&G value chain with full capabilities to undertake Marginal Fields and Enhanced Oil Recovery activities
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Marginal Fields

Facilities Transport to Offshore & Installation

IPF

Covering 90% of the development stage

Providing Services Across the Value Chain

ENGINEERING / PROCUREMENT / CONSTRUCTION

DECOMMISSIONING

DRILLING

SHORE APPROACH TOPSIDE INSTALLATION / HEAVY LIFTING CONVENTIONAL / DEEPWATER RIGID PIPELAY

DEEPWATER DEVELOPMENT PROJECT FLEXIBLE PIPELAY DIVING SERVICES

GEOPHYSICAL SURVEY

ROV SERVICES

SURF RESERVOIR STUDIES

Large Asset Base to Support the Business

Total New Capex of approximately USD1.4
Development & Production EPC

Bn
IPF Marine Services Drilling

X 1 unit FPSO (Berantai Field)

Lumut Fabrication Yard

X 4 units Derrick Lay Vessels

X 1 unit Subsea Construction Vessel

X 6 units Diving/Support Vessels

X 1 unit Semi-submersible barge

X 6 units Self- Erecting Tender Rigs Under construction

Under construction X 4 units Anchor Handling Tugs

Labuan Shipyard
X 2 units Derrick Lay Vessels Est. completion: Q4 2013/Q1 2014 X 3 units PLSVs Est. completion : 2014

X 24 units Remote Operating Vehicles X 4 units Geotechnical /geophysical vessels

2 rigs Est. completion : 2014 Geotech & Maintenance Services

Engineering Centres of Excellence

*Combined output of 100,000 mtpa

Conceptual, front end engineering and detailed design capabilities

X 6 units Accommodation work boats / barges

X 2 units Mobile Offshore Production Units

GE-certified repair & maintenance centre Total Management System at more than 940 Petronas service stations

Ownership of critical assets allows efficient and timely execution of projects to meet budget & schedule
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Top Global O&G Services Player

Within Top 10 of Global OFS Peer Group by Market Capitalization (1)
(US$Bn)

Top 5 EPCIC Global Players by Market Capitalization

17.5

Saipem Keppel Corp COSL Technip Petrofac Subsea 7 Sembcorp Marine Bumi Armada SapuraKencana MMHE McDermott Kencana Sapuracrest Dialog Group STX OSV Modec Ezra Ezion Honghua Group Anton Oilfield Alam Maritim Resources Perdana Petroleum 3.9 3.6 2.6 2.4 2.2 2.1 1.8 1.4 0.8 0.7 0.5 0.5 0.3 0.1 0.1
Engineering & Construction Marine Services Driller

13.9 10.5 10.4 8.5 7.4 7.2

US$Bn

1 2 3

Saipem Technip Subsea7

17.5 10.4 7.4

4
5

SapuraKencana
McDermott The ONLY Malaysian & Asian company in the top 5 EPCIC global players

3.6
2.4

Integrated Services Equipment Source: Bloomberg as at 25 May 2012

Note:

(1) Peer group consists of a universe of Asian oilfield services players plus global EPCIC players

Scale and Financial Strength

Combined Unaudited Revenue
RM$MM

Combined Unaudited Gross Profit

RM$MM % Margin

5,000 4,000 3,000 2,000 1,000 0

4,336

4,428

4,475

2010
US$1,445MM

2011
US$1,476MM

2012
US$1,492MM

US$258MM

US$288MM

US$355MM

Combined Unaudited Net Profit

RM$MM % Margin

Pro Forma Balance Sheet

As at 31 January 2012 Cash and bank balances Total assets Shareholders funds Total borrowings Gross gearing (times) (1) RM$MM 2,111 12,161 5,121 4,499 0.88 US$MM 704 4,054 1,707 1,500

600 500 400 300 200 100 0 2010

US$98MM

580 407 293 9.0% 7.0% 13.0%

16.0 13.0 10.0 7.0 4.0 1.0

Net gearing (times) (2)

0.47

2011
US$136MM

2012
US$193MM

Financial scale and width of capabilities allow SapuraKencana to undertake larger and more complex projects thereby increasing revenue growth potential and improving margins
Note: (1) Computed based on total borrowings divided by the shareholders funds, (2) Computed based on total borrowings net of cash and bank balances, divided by the shareholders funds (3) Combined numbers are based on financial year ended 31 January

Sizable Order Book

Sizeable Combined Order Book (1)
RM Bn

Order Book Geographical Breakdown (1)

International contracts > 50%

US$ Bn

4.17

0.27

0.30

0.03

Total: US$4.8 Bn

Large order book that spans the globe ensures strong base case revenue stream
Note: (1) As at May 2012

Proven Leadership Team

Board
Corporate Internal Audit President & Group CEO
Dato Seri Shahril Shamsuddin

EVC
Dato Mokhzani Mahathir

Energy & JVs

SVP Datuk Kris Azman

Drilling, Geotech and Maintenance Services

SVP Azmi Ismail

Offshore Construction and Subsea Services

SVP Reza Abdul Rahim

Fabrication / HUC
EVP Chong Hin Loon

Corporate Finance & Treasury

EVP Yeow Kheng Chew

Corporate Accounts Corporate Quality HSE Corporate Human Resources Corporate Supply Chain

Corporate Strategy & Planning

Corporate Risk Management

Legal

Corporate IT

Business Development Company Secretary

Corporate Communications

Key Milestones & Our Growth Story

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Key Milestones
Strategic Assets Acquired
LTS3000 & QP2000 Berantai FPSO(1)

TMT - ROVs

Sapura3000

Awarded the 1st Marginal Field contract

Migrated to Main Board of Bursa Malaysia Laid the 1st deepwater (1,450m) project in Malaysia Completed the largest (20,000mt) decommissioning project in Japan

Market Cap of

RM10.8
billion Order Book of

Awarder the US$1.4b Petrobras contract

RM14.3
billion 2006 2009 2010 2011 2012 Over 9,000 employees working
Listed on Main Board of Bursa Malaysia Secured 1st EPCIC contract Completed the worlds tallest (150m) selfelevating, relocatable wellhead platform Secured maiden longterm platform maintenance contract Awarded the 1st Marginal Field contract

Listing of SapuraKencana on Main Board of Bursa Malaysia

in more than 21 countries

Large asset
base to support business

Strategic Assets Acquired

Expansion of Lumut yard from 53 acres to 124acres

KM-1

Berantai FPSO(1)

From Malaysian O&G players to top 5 Global EPCIC player

(1) Berantai

Marginal Field

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Economic Transformation Program (ETP)

EPP1: Rejuvenating existing fields through EOR EPP2: Developing small fields through innovative solutions EPP3: Intensifying exploration activities
EPP6: Attracting multi-national companies to bring a sizeable share of their global operations to Malaysia EPP7: Consolidating domestic fabricators

Notable Awards Won US$800mil Berantai marginal oilfield awarded to Kencana-SapuraCrest-Petrofac Energy consortium US$38mil MOPU & Wellhead Support Structure for the Sepat early production system from Petrofac US$72mil EPC works for Cendor Phase 2 from Petrofac US$69mil contract to fabricate Kebabangan deepwater cluster US$71mil contract for the fabrication of Compression Modules for Sarawak Shell Berhad

EPP 8: Developing engineering, procurement and installation capabilities and capacity through strategic partnerships and JVs

US$34m contract for the provision of engineering, procurement and construction of substructures, template and related services for Completing SapuraKencanas capabilities with the involvement Murphy Sarawak Oil in development & operation of oilfield

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Global Player with Strong Track Record

Southeast Asia
RM2.4 Bn (US$0.7 Bn) CHESS:EPCIC of offshore platform Brownfield services CPOC: EPC of offshore platform Malaysia & Thailand CPOC, Carigali Hess: Provision of tender rig

CPOC: Transportation & installation of offshore facilities

Thailand PTT & Chevron: Provision of tender rig Indonesia Conoco Phillips: Hook-up & commissioning Myanmar PCML: Transportation & installation offshore facilities Vietnam

MALAYSIA

PTSC: Vessel charter and subsea services

Petrovietnam & PTTEP: Provisions of ROVs & barges

Australia
RM2.4 Bn (US$0.7 Bn)

Brazil
RM 4.2 BN (US$1.4 BN)

Russia
RM 20 MM (US$6 MM)

India
RM 1BN (US$0.3 BN) L&T: Transportation & installation of platform jackets Allseas: Site survey & support work L&T: Fabrication of platform Punj Lloyd: Fabrication of platform Apache: Transportation & installation of offshore facilities PTTEP Australasia: Offshore transportation & construction activities OMV/Clough: Fabrication of self-installed relocation platform Chevron, Shell, Santos, BHPP & Sinopec: Provision of ROVS Bechtel: EPC contract for Wheatstone LNG plant Chevron: Installation & construction of upstream facilities

Petrobras: Chartering and operation of PLSVs

Romona-BP: Survey & positioning work

Middle East
RM 45 MM (US$14 MM) EPC of equipment module in Iraq

Japan
RM 190 MM (US$57 MM) Nippon: Iwaki platform decommissioning

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Growing Global Presence

From Malaysia ASEAN to the rest of the world SE Asia Australasia Others in Asia Pacific Region

South America Gulf of Mexico West Africa

UK
Middle East

USA India

Kuala Lumpur

Australia Brazil

India Ocean North Africa

Middle East East Africa

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Well Positioned for Growth & Opportunities

Competitive Strengths
INTEGRATED services provider with full-fledged EPCIC capabilities LARGE INTERNATIONAL ESTABLISHED EXPERIENCED management and skilled engineering and technical team HSE

asset base to support our businesses

partnerships to support our businesses

track record and financial strength

track record and quality control

Ready for the future with new asset fleet

Employees
Over 9,000 Operations & projects in over

21 countries
Order Book of

RM14.3
billion

2 DLVs
Delivery 2013/14

2 Rigs

3 PLSVs
Delivery 2014

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Thank You

16

Appendices

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Board of Directors
Dato Hamzah Bakar Chairman & Independent NonExecutive Director

Appointed to the Board of SapuraCrest on 4 July 2003 Served 20 years in various senior management and board positions in Petroliam Nasional Bhd (PETRONAS) and 12 years in the Economic Planning Unit (EPU) of the Prime Ministers Department Currently serves on the Board of CIMB Group Holdings Bhd and CIMB Investment Bank Bhd

Dato Mokhzani Mahathir Non-Independent Executive Director & Executive ViceChairman

Appointed to the Board of Kencana on 25 November 2004 and currently serves as the NonIndependent Group CEO of Kencana Currently also serves on the Board of Opcom Holdings Bhd, Maxis Bhd, Sime Darby Auto Performance Sdn Bhd and Kencana Capital Sdn Bhd, amongst others Began his career as a Wellsite Operations Engineer with Sarawak Shell in 1987 Graduated with a Bachelor of Science in Petroleum Engineering from the University of Tulsa, Oklahoma in 1987 Joined the Sapura Group in 1985, taking over the leadership as President and CEO in 1997 Led key strategic growth areas resulting in strengthened asset base & enhanced capabilities which enabled the first deepwater installation and marginal field development in Malaysia, and the largest decommissioning project in Japan

Dato Seri Shahril Shamsuddin Non-Independent Executive Director & President and Group CEO

Received a Master of Science in Management of Technology from MIT Sloan School of Management
Conferred the Legion d Honneur from the Republic of France in November 2007 & awarded the Malaysias Ernst & Young Entrepreneur Of The Year for 2009 Appointed to the Board of Kencana on 16 September 2008 Served as the Group Chief Executive of Sime Darby Berhad from 1993 until his retirement in June 2004 and during this period, he also served on the Boards of the Sime Darby group of companies Other Malaysian public companies in which he is a director are Scomi Group Berhad, GuocoLand (Malaysia) Berhad, and Bolton Berhad

Tan Sri Nik Mohamed Independent Non-Executive Director

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Board of Directors (contd)

Tan Sri Datuk Amar (Dr.) Hamid Bugo

Appointed to the Board of SapuraCrest on 25 July 2003 Experience includes Administration Manager, Malaysia LNG Sdn. Bhd. (a joint venture of Petronas, Shell, and Mitsubishi), the first General Manager of Land Custody and Development Authority, Sarawak, Permanent Secretary, Ministry of Resource Planning, Sarawak, and State Secretary of Sarawak

Independent NonExecutive Director

Tan Sri Ibrahim Menudin Independent NonExecutive Director)

Appointed to the Board of SapuraCrest on 22 November 2007

Experience includes Accountant General of Sabah, CEO of Bumiputra Investment Fund of Sabah, Chairman of Sabah Gas, Deputy Chairman of Sabah Forest Industries, Group CEO of Malaysia Mining Corporation Berhad and as the Special Advisor to the Chief Minister of Sabah

Chong Hin Loon

Non-Independent Executive Director

Appointed to the Board of Kencana on 15 September 2005, and is currently responsible for the operations, project management and yard operations of Kencana More than 40 years of experience in the oil and gas and shipbuilding and ship repair industries including establishing Kencana HL in 1982, and being engaged as Construction Supervisor with Keppel FELS, and Project Engineer with Promet Pte Ltd

Shahriman Shamsuddin Non-Independent Non-Executive Director

Appointed to the Board of SapuraCrest on 1 August 2008 Joined the Sapura Group in 1991, and currently holds a number of key senior positions within the Group including Managing Director of Sapura Resources Bhd, Executive Director of Sapura Industrial Bhd, and Director of Sapura Technology Sdn Bhd as well as Sapura Holdings Sdn Bhd Graduated from Warwick University with a Master of Science in Engineering Business Management and a Bachelor of Science in Industrial Technology from Purdue University, USA

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Board of Directors (contd)

Yeow Kheng Chew Non-Independent Executive Director

Appointed to the Board of Kencana on 15 September 2005 and is currently the Director of Kencana Capital Sdn Bhd and several private limited companies Experience includes being engaged as an Accountant/Financial Controller of Kuan Wah Group of Companies for 6 years, Executive Director of Sinpen Investment Pte Ltd, Executive Director of Tongkah Holdings Bhd, and member of the Board of Pantai Holdings Bhd

YM Tunku Dato Mahmood Fawzy Tunku Muhiyiddin Independent NonExecutive Director Mohamed Rashdi Mohamed Ghazali Independent NonExecutive Director

Appointed to the Board of Kencana on 29 September 2010, and has more than 20 years of international work experience in companies spanning various industries, from banking, IT and investment holdings to shipping, and oil and gas Serves on the Board of Telekom Malaysia Bhd and Hong Leong Islamic Bank Bhd Previously engaged as Executive Director of Investments at Khazanah Nasional Bhd

Appointed to the Board of SapuraCrest on 14 November 2003, and currently acts as a consultant for a number of organisations and serves on the Board of MIMOS Bhd Joined the Sapura Group in 1983, and has over 30 years working experience in the IT industry and consulting Experience includes being Partner of IBM Business Consulting Services, and Advisor for IT and Consulting Services with PwC Malaysia

Mohd Adzahar Bin Abdul Wahid

Independent NonExecutive Director

Appointed to the Board of Kencana on 3 January 2006

Experience in the areas of accounting, auditing, finance, and corporate services Joined PMCare Sdn Bhd in 1995 as the General Manager of Finance and was appointed as the Executive Director in April 1996. As the Executive Director, he is responsible for the overall management of the company which includes strategic planning, business development, finance, and operations

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Executive Committee

Dato Seri Shahril Shamsuddin Yeow Kheng Chew

Dato Mokhzani Mahathir

Chong Hin Loon

Datuk Kris Azman Abdullah

Azmi Ismail

Chow Mei Mei

Reza Abdul Rahim

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Prospects of Target Markets

Well Positioned to Expand our Global Reach

North America The Gulf of Mexico: Potential for offshore E&P activity, increasingly in deeper waters

Emerging Market - Brazil Driven by prolific deepwater frontiers and pre-salt plays Offshore market has entered a significant and prolonged growth phase

Middle East, Caspian Sea & Australasia Australia: Majority of offshore capex in water depths of < 500 metres with significant deepwater potential

Malaysia Capex driven by significant increase in number of fields for E&P (73 project developments expected over the next 5 years) Increasingly complex field developments

Regional Markets Growth opportunity in development of subsea production market, which is forecast to increase dramatically in the near term

Middle East: Shallow water region with large reserve discoveries

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Region of Focus: Malaysia

Petronas Focus on Domestic Exploration & Production Program

Committed to a 5-year US$100 billion capex to boost domestic oil and gas production and reserves and support its growth agenda Target to extract 1.7 bn barrels of oil via: Marginal Fields 106 available, 90 hotspots identified 25 marginal fields lined up, 10 ready for development Enhanced Oil Recovery (EOR) 6 fields* identified for EOR Potential recovery of almost 1 billion barrels Other initiatives include: Shallow Fields 22 new shallow water blocks Deepwater development 6 fields identified for future development, e.g Malikai, Jangas, Kamunsu Maintenance & HUC jobs RM 3bn allocation

Malaysias Implementation of Deepwater Projects

2008 2009 2010 2011 2012 2013 2014 Field Reserves Type Estimated Estiimated reserves Water (mbbl) depth (m) Type of rigs required

Kikeh

Oil

400

1326

Floating production unit Semi-submersible floating production system Tension leg platform

GumusutKakap Malikai

Oil Oil

400 - 900 108

1000 800

Kebabangan

Oil

100 - 300 100 - 400

Production platform*

Jangas Ubah Crest

Oil & gas

81

>1000

NA (field study)

Oil & gas

215

1430

NA (field study)

Pisangan

Oil & gas

56

1485

NA (field study)

Kamunsu
Exploration strategy Field Development Studies Project implementation Exploration

Gas

401

737

NA (field study)

Preliminary engineering Indicative first oil

Appraisal & reservoir evaluation

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Region of Focus: Brazil

Petrobras 2011 - 2015 Business Plan Highlights 65% of Capex allocated to production development Implementation of 19 large projects, adding capacity of 2.3 mmboe/d Drilling of more than 1,000 offshore wells, of these 40% is exploratory and 60% is production development
Exploration & Production Investments in Brazil: US$117.7Bn

Total E&P Investments in Brazil (1)

Exploration

Other Areas 68%

Pre-Salt 26%

Transfer of Rights 6%

In 2020, the pre-salt production will correspond to 40.5% of the oil production in Brazil

Historical Production from Offshore Projects in Brazil

mboe/d

Production Development

Source 2020 Petrobras Strategic Plan Note: (1) Pre-salt includes basins in Santos, Campos and Esprito Santo

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Other Regions of Focus: Australia & North America

Australia
Primarily comprises projects and prospects based off the coast of Western Australia and the Northern Territory Majority of capex is expected for projects in water depths of less than 500 metres Significant long-term deepwater potential, with activity expected to peak in 2015 at almost US$2.1 billion Gas demand continues to support LNG projects, beyond those already under construction. Sanctioned LNG projects will elevate Australia to the worlds largest LNG exporter shortly after 2015
Total Offshore Field Development Capex (US$bn)

9.7

Activity Continues as LNG Development Advances

3.6

2011

2015F

North America
Expect Permit Approval for 4 RDS wells in 2012

The North American market, dominated by the Gulf of Mexico (GoM), still holds considerable potential for offshore E&P activity. Growth is forecast to become increasingly focused on deeper waters in GoM Deep water (more than 500 metres) activity is expected to account for over 76% of total North American offshore infrastructure investment to 2015, with pipelines, subsea equipment, and floating platforms forecasted to assume 94% of this spending

Total Offshore Capex (US$bn)

12.5 9.0

GoM Reopens with Lower Tertiary wells and Bahamas & Cuba Exploration to Commence Major 2011 Discovery

2011
Upcoming High Impact Well Through 2012

2015F

Source Morgan Stanley Research, ISL

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Disclaimer
Information contained in this presentation is intended solely for your personal reference and is strictly confidential. Such information is subject to change without notice and it may not contain all material information concerning the Company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. In addition, the information contains projections and forward-looking statements that reflect the Companys current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the Companys assumptions are correct. Actual results may differ materially from those projected. This presentation is strictly not to be distributed without the explicit written consent of the Company under any circumstance.

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