ConocoPhillips Indonesian Assets Acquisition

PT Medco Energi Internasional Tbk

Jakarta, 8/12/2021
 Acquisition Rationale
• The assets fit Medco’s acquisition criteria having significant credit strengths and the potential for future
growth.
• Corridor PSC is a gas focused asset, in line with Medco’s Climate Change Strategy. Medco production
will be 78% gas post Corridor with a larger fixed price gas portfolio.
• The acquisition will be accretive and credit positive, and the scope for significant synergies will represent
an upside.
• Successful experience of integrating organization and processes of ex-ConocoPhillips South Natuna Sea
Block B will facilitate smooth transition and integration of Corridor.
• Corridor brings world class HSE & operating practices, and access to suitable reservoirs for Carbon
Capture/Utilization & Storage (CCS/CCUS) opportunities.

Credit Strengths:
• The acquisition consolidates Medco as the main piped gas supplier to Singapore.
• Improved operating scale with long-term offtake and Take or Pay backed contracts with high quality
counterparties (PGN, Pertamina and GSPL).
• Corridor’s cash cost of US$4-5/boe will support Medco’s cash cost sub US$10/boe commitment.
• Corridor is adjacent to Medco’s existing operations in South Sumatra and the combined portfolio will
generate operational, procurement and commercial synergies.
• Regular dividends from Transasia.
• Restricted Group and Total Debt will increase post acquisition, but the 37% equity contribution and strong
cash generation will enable our leverage to come back to pre acquisition levels by 2023-24.
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 Target Overview

ConocoPhillips Indonesia Holding Ltd.

(“CIHL”)

100% interest 35% interest

ConocoPhillips (Grissik) Ltd. Transasia Pipeline Company Pvt. Ltd.

(“CPGL”) (“Transasia”)

54% WI until 19 Dec 2023

46% WI from 20 Dec 2023 - Dec 2043 40% interest

Corridor Block PSC PT Transportasi Gas Indonesia

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 Medco Portfolio – Post Transaction
Sinphuhorm
Tanzania Yemen

Thailand Laos
Bualuang

Vietnam
Cambodia

Chim Sao and Dua

Malaysia Bengara
PM322
Bangkanai

Block A South Natuna

Sea Block B North Tarakan
Sokang

Simenggaris Mexico Libya Oman

Geothermal
Sarulla South Sokang Donggi Senoro
West Bangkanai LNG
Singapore
Riau IPP
Corridor & Batam IPP
TGI Pipeline Kalimantan

Sulawesi
South
Sumatra
Region Senoro-Toili Papua Papua
Sumatra IPP Sampang Madura New
Batu Hijau Guinea

Java Elang

Mini Hydro Energy Mini Hydro

Building Cluster
(HQ) Geothermal
Ijen

Production
Production Development Mining Production Mining Development
Power Installed Power Development
4 Exploration Mining Exploration
 Corridor Block PSC – Asset Overview

Block awarded in 1983, PSC cost recovery will expire in December 2023.
Block extended from Dec 2023 - Dec 2043 under PSC gross split terms.
To Pertamina Rokan GSA with Pertamina Current Partnership:
and PGN Dumai o CPGL 54% (Operator)
o Repsol (Corridor) Ltd. 36%
o Pertamina Hulu Energi Corridor 10%

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 PT Transportasi Gas Indonesia (TGI) – Asset Overview

ConocoPhillips
Petronas Repsol SPC
Indonesia Holding Ltd

35% 35% 15% 15%

PT Perusahaan Gas Transasia Pipeline

YKPP Gas Negara
Negara (PGN) Company Pvt. Ltd.

59.87% 40% 0.13%

PT Transportasi
Gas Indonesia

Pipelines
• Grissik – Duri: 28” pipeline 536 km onshore, 427 mmscfd
• Grissik – Singapore: 28” pipeline 220 km onshore, 248 km offshore, 465 mmscfd

Financial
• TGI has consistently paid dividends to Shareholders since 2011

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 Acquisition Timeline
EGMS EGMS Invitation EGMS
Announcement Early Feb 22 End Feb 22
Mid Jan 22
Full payment to Seller
Agreement Signing Rights Issue
SPA Closing Date
Date Proceeds
Early Mar 22
Early Dec 21 End Mar 22

The Transaction is expected to complete in March 2022, subject to customary conditions and shareholders’ approval at an Extraordinary
General Meeting of Shareholders (“EGMS”).
Shareholders approved a Rights Issue in August 2021 to fund an acquisition. This is expected to be executed Q1 2022 subject to regulatory
approvals.

Acquisition Funding Plan (effective date 1.1.2021)

Sources of Cash (US$mn) Uses of Cash (US$mn)

Bond – 2028 Note 400 Acquisition Consideration 1,355
Amortizing Loan – 2 years 450
Medco Cash + Equity + Asset Cash1 505
Total 1,355 Total 1,355
1) With a 1 January 2021 effective date the asset has generated significant cash which can be retained by the Seller as part of the consideration
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 Post Corridor Debt Maturity Profile
Restricted Group Debt Maturity Profile

Recently raised IDR Bonds (3 and 5 year) to cover 2022

maturity

Previous IDR Bonds with full repayment amount in escrow

Corridor amortizing bank loan

690
645
525
382 369 400

142

55
2021 2022 2023 2024 2025 2026 2027 2028

Installments Bullet Payment

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 2022 Guidance: Production
9M-2021 Actual 2019-2021 (mboepd) 2021-2022 Guidance (mboepd)
• Production 93 mboepd following extended
155 100%
downtime (Aceh, Vietnam, Tomori) and weak gas
demand (East Java, Aceh, Singapore-LNG
22%
Competition)
• 2020 & 2021 gas demand below pre-COVID-19 levels
• Brent hedge of ~14.5% 2021 production, 2H-2021 103 100
~9% at ~US$51/bbl, 1H-2022 10.3% production at ~ 93 95 100%
121
US$51/bbl, 2H-2022 5.6% production at ~US$51/bbl 25%
56%
64 60
58 57
2022 Pro forma Guidance 35%

• Fixed price gas contracts are a natural hedge

• 2022 Pro forma production guidance 155 mboepd
39 40 35 38 40% 34 22%
• Company expects domestic gas demand in
Indonesia will continue to recover in 2022
2019 2020 9M21 2021 Indexed & 2022 Indexed &
Guidance Fixed Gas Pro forma Fixed Gas
Composition Guidance Composition

Liquids Gas Fixed Priced Gas Indexed Priced Gas

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 2022 Guidance: Expenditure
9M-2021 Actual
Cash Cost/Unit(2), US$/boe
• Oil & Gas Capex US$31mn. Activities ramping up but
155
will be under full year guidance of US$150mn
103 100
• Power1 US$22mn, to progress Riau Project 87 85 93
66
commissioning. Expect to be under full year 56 56
guidance of US$65mn due to project re-phasing 15.4
12.3
9.1 9.9 9.1 9.3 <10
• Oil & Gas cash costs US$9.3/boe, notwithstanding 8.8 8.4
extended shutdowns in Q2.
2014 2015 2016 2017 2018 2019 2020 9M21 2022
Pro forma
guidance
Cash Cost Production (mboepd)

2022 Pro forma Guidance Capex , US$ mn

329 313 325
• Oil & Gas Capex US$275mn, Power1 US$50mn
61 50
• Remain disciplined on expenditure but retain 119 207 215
flexibility as demand recovers 63 65
268 275
• Oil and Gas cash costs below $10/boe 194
144 150

2018 2019 2020 2021 2022 Pro forma

Guidance Guidance
Oil and gas Power1

1) Power capex is working interest Riau (51%) and Ijen (51%)

10 2) Unit cash cost excludes production and expenditure on Oman KSF service contract
 OIL AND GAS STATISTICS
YoY
Metrics 9M-20 9M-21 ∆%
Net 2P Reserves, MMBOE Net Contingent Resources, MMBOE

Production1
1,125 1,171
Oil, MBOPD 40.6 35.0 (13.7)
Gas, MMSCFD 319.3 311.3 (2.5)
Lifting/Sales
Oil Lifting1, MBOPD 38.9 33.8 (13.2)
Gas Sales, BBTUPD 299.8 288.7 (3.7) 1,015 1,058
475
Oman Service Contract, MBOPD 7.6 7.2 (4.5)
310
Average Realized Price 321
163
Oil, USD/barrel 39.5 64.1 62.3
147 154 110 113
Gas, USD/MMBTU 5.1 6.3 23.2
ESG Indicators 1 Jan 2021 Pro forma Corridor 1 Jan 2021 Pro forma Corridor
2
Scope-1 Intensity (tCO2 eq/1,000 TOE Production) 216.7 212.9 (1.8) 1 Jan 2021 1 Jan 2021
Scope-1 Energy Consumption3 (in million GJ) 13.31 12.90 (3.1)
E&P Recordable Incident Rate (TRIR) 0.43 0.35 (18.6) Net Hydrocarbon Production1, MBOEPD Net Hydrocarbon Production1, MBOEPD

Nine Months 2021 155 155 155

• 2020 5-year average 2P RRR 1.2x, 2020 2P RLI3 9.9 Years 22%

• 9M21 Proved Developed Reserves are 82% of 1P Reserves 93 100%

103 100 95
121 121
• 2020 5-year avg. 2P F&D3 cost US$10.1/boe 26% 56%
64 60 57
Corridor Acquisition 58
36%
• 1P Reserves4 134mmboe
• 2P Reserves4 purchase price is US$8.2/boe 35 38% 34 22% 39 40 38 34
• Medco post Corridor Proved Developed Reserves are 84% of 1P Reserves. 9M-2021 Indexed & 2022 Pro Indexed & 2019 2020 2021 2022 Pro
• Medco post Corridor 5-year avg. 2P F&D cost is US$9.2/boe Fixed Gas forma Fixed Gas Guidance forma
Composition Guidance Composition Guidance
Liquids Gas Fixed Price Gas Indexed Price Gas

1) Includes Oman Service Contract

11 2) Energy consumption numbers and 9M-21 Scope-1 Intensity number are not audited
3) 5-year average 2P Reserves Replacement Ratio (RRR), Reserves Life Index (RLI) and F&D cost/boe as of 31 Dec 2020
4) As at 1 January 2021
PT Medco Energi Internasional Tbk
The Energy Building 53rd Floor
SCBD Lot 11A
Jl. Jend. Sudirman, Jakarta 12190
Indonesia
P. +62-21 2995 3000
F. +62-21 2995 3001

Website : www.medcoenergi.com