FIRE EXITS FLOORPLAN 1 Agenda Realising value through capability - - PowerPoint PPT Presentation

Turning opportunities into value by

targeting maturing assets and underdeveloped oil fields

FIRE EXITS FLOORPLAN

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▪ Realising value through capability ▪ 2017 Highlights ▪ Operations ▪ Doing business with EnQuest ▪ Indicative programme of work 2018 Agenda

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Continual Improvement Plan – SAFE Behaviours

• Embed Life Saving Rules
• Deliver new Control of Work system
• Update Operations and Maintenance

procedures

• Improve risk perception awareness
• Continue to implement HCR prevention plans
• Fully implement Environmental Management

System Awareness

• Complete ‘Play Your Part’ roll out
• Drive improved self monitoring practices
• Recognise and share positive HSE behaviours
• Continue Safety Reps and E-Reps training
• Work with our service providers to learn from

and harness industry best practice

• Use leadership visits to engage with everyone
• n Major Accident Hazards

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EnQuest Growth : from 6 to 8 hubs, a growing & increasingly diversified portfolio

The Dons Heather/Broom Greater Kittiwake Area Thistle/Deveron Kraken PM8/Seligi Alma/Galia Magnus SVT

Realising value through capability

• Field life extension
• Production efficiency
• Project delivery
• Wells delivery

Differential capability

• Supply chain excellence
• Capex discipline in projects

Low Cost Operator

• Restructuring delivered in 2016
• Targets aligned to cash generation

Financial Discipline

A relentless focus on Safe Results with no harm to people and respect for the environment

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EnQuest has delivered strong Compound Annual Growth

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* CAGR for first seven years will be 17%, based on the mid-point for our 2017 production range

EnQuest’s reserve base has also grown considerably

(68) MMboe 202 MMboe 215 MMboe +151 MMboe Contingent Resources

Net 2P reserves start 2010 Production 2010 to 2016 Additions to reserves 2010 to end 2016 Net 2P reserves at end 2016

81 MMboe

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H1 2017 ▪ Delivered Kraken first oil on schedule and under budget ▪ Agreed to acquire Magnus/Sullom Voe Terminal Outlook 2017 full year and beyond ▪ Full year production guidance at 37,015 Boepd +/- 10% ▪ To date Kraken well rates above expectations ▪ On course for gross 50,000 Boepd plateau in H1 2018 ▪ Magnus completion anticipated before year end ▪ Substantial potential in existing portfolio, net 2P 215 Mmboe

H1 highlights and latest full year outlook

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Kraken – Wells

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▪ 13 wells completed to date and a further four being completed on DC3 ▪ Total footage drilled: 200,733ft (38 miles) ▪ Gross Reservoir interval drilled: 38,719ft ▪ World record: Longest Optipac (alternate-path) gravel pack - 4,347ft (Jun 2017) ▪ Drilling programme currently 288 days ahead of April 2014 pre-drill estimate as a result of:

▪ Collaborative team approach between: wells, subsurface, subsea; onshore /

• ffshore; EnQuest / supply chain

▪ Batch drilling philosophy with focus on continuous improvement from operation to

• peration

▪ Use of appropriate ‘value-adding’ technology ▪ Continuing to drive down well cost through supply chain management and drilling performance

Acquisition of Magnus

Avenue for growth in a capital constrained world

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▪ EnQuest is a life extension expert, with the right integrated technical skills, operational scale and high level of operating efficiency ▪ Well placed to extend the lives of Magnus and SVT ▪ Will provide new opportunities for the assets and benefit to the wider UKCS basin ▪ The OGA is focused on Maximising Economic Recovery (‘MER UK’) ▪ This transaction is a very good example of this ▪ EnQuest track record of successful integration of acquisition assets: GKA, Malaysia ▪ Existing operator of three facilities adjacent to Magnus, also potential for economies of scale ▪ Innovative transaction structure aligns interests of partners and is a natural evolution of EnQuest’s business ▪ Recognises EnQuest as a natural strategic operator of maturing assets

2018/19 Indicative Activities*

Central North Sea and Quad 9 ▪ Continued drilling of Kraken wells (DC4) ▪ DC4 Subsea Installation ▪ Optimising Scolty/Crathes production (Chemical treatments & new pipeline, 2019 execution) ▪ Targeting completion of Eagle development planning ▪ Alma Galia workovers ▪ GKA scale squeeze

Subject to budget approval

2018/19 Indicative Activities*

Northern North Sea ▪ Thistle and Heather well abandonments ▪ Heather development well ▪ Thistle ESP workover ▪ Dunlin bypass contract award for 2019 execution ▪ Magnus drilling, 3 wells ▪ Thistle Gas Compressor project ▪ £10million of licence to operate capital brownfield project scopes

Subject to budget approval

Doing business with EnQuest

Doing Business with EnQuest

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Supply Chain Code of Practice

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Committed to full compliance with the Supply Chain Code of Practice to:- In support of the Code, our preferred suppliers are registered with FPAL. For more information or to register your company go to www.FPAL.com ▪ Improve performance ▪ Eliminate unnecessary costs ▪ Add value and boost competitiveness

Becoming a Supplier Performance Reviews Audits

Institutionalising low cost base – Internal & External

H2 H1 H2 H2 H1 H1 H2 H1

2017 2016 2015

Centralised Procurement

2018

Integrated Logistics Operators Inventory Sharing Operations Excellence Supplier Forum Aviation Hub Inventory Assurance Plan Open Book Contracts Alternate Sourcing Fixed Price Catalogues Shared Services Org Should Cost' Modelling Completed In Progress Planned Vendor Managed Inventory Marine Hubs

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2017/2018 challenges and EnQuest expectations Long term contracts

Transparency through open book contracts Manage entire Supply Chain Post Award Contract Management Eliminate Waste

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Reduce current OPEX, CAPEX & ABEX To allow future for investment

Doing business with EnQuest

Description Estimated Tender Date Area

Lifeboat Maintenance Q1 2018 Operations / HSE Battery Maintenance/Supply Q1 2018 Operations Diesel Engines Q1 2018 Operations Nitrogen and Maintenance Gases Q2 2018 Operations Safety Consumables Q2 2018 HSE Subsea IRM Review Strategy Subsea Liner Hangers Q1 2018 Wells Bridge Plugs Review Strategy Wells Wellhead Maintenance Q1 2018 Wells Suspension Plugs H1 2018 Wells Offshore Solids Control Equipment/Onshore Processing H1 2018 Wells ESPs Strategy Q4 2017 Wells Dons NE Well Service contracts Strategy Q4 2017 Wells

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Indicative programme - 17/2018

Doing business with EnQuest

Description Estimated Tender Date Area

Investigatory services incl. Engineering Services, HSE, integrity etc. Ongoing – RFQ’s to be issued as and when required Operations Production Chemicals Q1 2018 Operations Pumps Strategy Q1 2018 Operations Platform ROVs Ongoing, RFQs issued on an ad hoc basis Operations

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Indicative programme 17/2018

Summary

EnQuest expects suppliers to: ▪ Take initiatives and come up with ideas ▪ Simplify service delivery processes ▪ Reduce cost base through sustainable structural changes ▪ Challenge entire supply chain ▪ Transportation costs Suppliers should expect EnQuest to: ▪ Continue to grow and keep activity levels high ▪ Maintain a leading industry position ▪ Open to suggestions for changing cost base and improving quality ▪ Commit to longer term contracts with suppliers who deliver best quality at lower cost

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Contracts & Procurement Contacts

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Sachli Zare, Manager Purchase to Pay (Dubai) DD: +971 4 550 7129 E: Sachli.zare@enquest.com Barry Bremner, Contracts Team Lead DD: +44(0)1224 975136 E: barry.bremner@enquest.com Neil Imrie, Senior Contracts Engineer, Subsea DD: +44(0)1224 975275 E: Neil.Imrie@enquest.com Craig MacPhee, Senior Contracts Engineer, Maintenance DD: + 44 (0) 1224 975327 E: Craig.MacPhee@enquest.com

Lesley Thomson, Contracts Manager DD: +44(0)1224 975350 E: lesley.thomson@enquest.com Nikki Stevenson, Contracts Engineer, Operations DD: +44(0)1224 975484 E: Nikki.Stevenson@enquest.com