2012 analyst east med

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Noble EnergyAnalyst Conference

December 6, 2012


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Eastern Mediterranean

Rodney Cook

Senior Vice President International


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Eastern MediterraneanGrowing domestic demand driving near-term value

Tamar to have Significant Impactfor All Stakeholders

Natural Gas the Fuel of Choice for Israel

Total demand grows at 15% CAGR 2012 2017

Leviathan Expected to SupplyDomestic Markets in 2016

Advancing Export Options withTarget Start-Up around 2018

Strategic Partner Selected for Leviathan

102


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Eastern MediterraneanExisting asset position

Six Consecutive Discoveries

Over 35 Tcf gross resources

12 Tcf net, 2.2 Tcf net booked reserves

Noa and Pinnacles BridgingSupplies Until Tamar Start-Up

Tamar on Scheduleand on Budget

Positioning LeviathanDevelopment

Appraising Cyprus A

Mesozoic Oil ExplorationTargeted for 4Q 2013

103

Leviathan40% WI

Dolphin40% WI

Mari-B47% WI

Cyprus70% WI

Tamar36% WI

Dalit36% WI

Noa47% WI

AOT47% WI

Tanin47% WI

Pinnacles47% WI


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0

500

1,000

1,500

2,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MMcf/d

Electricity Industrials Announced Coal Conversion

Israel Natural Gas DemandSupports faster and earlier development of discovered resources

Gas is The Fuel of Choice

Shift to base load with less swing

Strong electricity and industrial demand

Potential for converting coal-fired electricity generation

104

Annual Average Natural Gas Demand

Demand Swing(lower swing % over time)

15% CAGR

2012 2017

Source: Poten and Partners, Noble Energy estimates


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Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

System Capacity

Historical Avg. Sales

Historical Seasonal

Future Curve

Future Avg. Sales

Israel Gas Demand ShiftGrowing base load increases system uti lization

Growth from Industrial Customers and Coal ReplacementCreates a Flatter Demand Profile with Less Swing

Higher Sales per Unit of Installed System Capacity

105

HigherSales

Base Demand Increasing, Higher Sales Evolving Demand Mix*

* Excludes coal conversion, which further

flattens of gas demand swing

100%90%

60%

2004 2010 2020Electricity Industrial

Source: Economics Models Ltd, Noble Energy estimates


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6.6

14.5

Israel Texas

Electricity Market in IsraelNatural gas fueling Israel s future

All New Generation Capacity is Gas-Fired

Economic and environmental benefits

Per Capita Use of Electricity in Israel is Lower than Average

OECD Countries

With Israels Economic Growth, Electricity ConsumptionShould Reach Current per Capita Texas Levels

106

2010

56TWh

2020

85TWh

Electricity GenerationGrowth Forecast

4.3% CAGR 2010 2020

2011 Electricity Consumption(KWh per capita)

Israels GDP9% CAGR 2004 2012

0

75

150

225

300

2004 2006 2008 2010 2012

Source: Electricity Forecast Economics Models Ltd, GDP World Bank


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Industrial Market in IsraelFast growing base load demand

Current Customers have Switched from Liquid Fuelto Natural Gas

Segment Enabled by Growing Natural Gas Supply

By 2020 New Projects will Make Up ~30% of Industrial Demand

107

0

200

400

600

2009 2011 2013 2015 2017 2019 2021

MMcf/d Annual Industrial Natural Gas Demand

Source: Poten and Partners

Note: Industrial sectors include refining, chemicals, desalination, paper mill, cement, among others


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Coal Conversion in IsraelStrong incentives to convert to natural gas

Coal ~40% of Israel Electric Installed GenerationCapacity and ~60% of Actual Generation

Coal Plants Required to Reduce NOx and SOx

Emissions by 2016 Significantly Cheaper to Convert Coal Boilers to

Burn Natural Gas

10:1 cost difference

Hadera A Coal Unit Conversion Already Announced

Multiple Benefits of Gas Over Coal State GasRevenues, Energy Security, EnvironmentalEmissions Reduction

Coal Conversion Shifts Gas Demand to Base Load

108

Source: Israel Electric, Noble Energy estimates


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Tamar ProjectOnline four years from discovery

On Schedule and on Budget

Start-up expected April 2013

$3.25 B gross investment

Industry Leading Cycle Time

2.5 years from sanction

Worlds Longest Subsea Tieback

93 miles tieback, 5,505 ft. water depth Excellent Safety Record

Initial Capacity Already Contracted

109

Topsides in YardTopsides in Yard

Jacket in PlaceJacket in Place


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Tamar in PicturesWorld-class execution

110

Jacket SailawayJacket Sailaway Topsides SailawayTopsides Sailaway

Subsea Manifold InstallationSubsea Manifold Installation Flowback TestFlowback Test


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Tamar Timeline to Start-UpIn the final stages

111

First Production

Hookup and Commissioning

Mari-B Brownfield

Drilling and Completions

AOT Modifications

Subsea Field

Project Sanction

2011 2012 2013Project Phase 2010

Platform

NOW


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0

400

800

1,200

1,600

Phase 1 Compression SystemOptimization or

Storage

MMcf/d

Tamar ExpansionsSignificant capacity expansion targeted for 2015

Phase 1 Onshore Capacity985 MMcf/d

Future Expansion Phases

Increase Capacity to 1.5 Bcf/d Compression at onshore terminal

Existing system optimization orstorage at Mari-B*

Evaluating Tamar FloatingLNG Export Project

112

Tamar Capacity Progression

+25%

+22%

* Pending regulatory approvals


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Israel Blended Pricing 2013-2015Tamar to meet remaining Mari-B contractual commitments

113

Tamar Sales ($5.75)

Tamar

Start Up

2013 2014

Tamar Sales ($5.95)

Blended Price $5.20/Mcf Blended Price $5.50/Mcf

2015

Tamar Sales ($5.90)

Blended Price $5.60/Mcf

Note: Arrow size represents relative sales volume

Mari-BSales

($5.10)

Mari-B Sales($3.35 using Tamar gas)




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Tamar ImpactSignificant long-term value for all stakeholders

Long Plateau Asset

Condensate Gross Revenue ~$50 Million per Year

Condensate yield 1.2 1.5 Bbl/MMcf

Israel Energy Savings and Revenue ~$130 Billion*

CO2 Emissions Reduction ~195 Million Metric Tons*

Equivalent to CO2 emissions from all cars in Israel for ~14 years

114

Tamar Domestic Sales Outlook

Assumes sales at 70% of peak 1.5 Bcf/d capacity

0

300

600

900

1,200

2013 2015 2017 2019 2021

MMcf/d

* Life of field

Note: Assumes sales at 70% of peak 1.5 Bcf/d capacity


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Leviathan DevelopmentIncreasing security and reliability of supply

Resource Estimated at 17 TcfGross, 6 Tcf Net

Flow Back Test Confirms High

Quality Reservoir Single well capable of 250 MMcf/d

Condensate yield 1.8 2.0 Bbl/MMcf

Appraisal Well #4 Drilling

Screening Multiple DevelopmentConcepts

Targeting Initial Production toSupply Domestic Market in 2016

115

#5 Planning

#3 Drilledand Evaluated

GOM OCSBlock Outline,

24 Blocks

#1 Drilledand Evaluated

#4 Drilling

#2Plugged

+


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Leviathan Phase 1 Development ConceptOffshore processing with northern entry point

116


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Leviathan Full Field DevelopmentField scale requires multiple development phases

Phased Development Accelerates Value Delivery

Phase 1 to Include Pre-Investment in Upstream Facilitiesfor LNG Export Project

1.6 Bcf/d facility: 750 MMcf/d domestic, 850 MMcf/d export

Multiple Downstream Export Options 2018 2020 Range

Onshore LNG

FLNG

Pipeline export

Second Phase Includes a Second Deepwater HubSupplying Additional Domestic and Export Markets

Potentially serves other fields

117


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Woodside Strategic Partner for LeviathanLNG expertise, financial capacity and access to markets

Australias Largest Producer of LNGwith Over 25 Years of Experience

Designed, constructed and commissioned 5 LNG trains

Pluto worlds fastest at 7 years discovery to production

Deliver 3,200 LNG cargos

$28 Billion Market Cap

$2.2 B in annual operating cash flow

Baa1 / BBB+ credit rating

Strong Working Relations with Many Potential Customers

Including China, Japan, Korea and other Asian markets

Best Practice Focus on Safety, Integrity and Reliability

Good relationships with its host regulators and governments

118


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Leviathan Sell Down ProposalIncreasing market value recognition

NBL Selling 9.66% Interest

Continue as upstream operator with 30% working interest

Cash Payments Totaling $464 Million

$287 MM at closing

$64 MM when Israel gas export regulations enacted

$113 MM when FID made on export project

LNG Revenue Sharing Up to $322 Million

Proportionate share of 11.5% of Woodsides annual LNG revenues aboveprice parameters

Drilling Carry of $16 Million on Mesozoic Oil Test

$802 Million Total Implied Price Including Revenue Sharing

Finalize Definitive Agreements During 1Q 2013

119


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Cyprus-A DiscoveryTransforming Cyprus to an energy export ing country

Resource Estimated at5 8 Tcf Gross

Targeting Appraisal Well

and Test in 2013Working with Government

on LNG Project Agreement

Paves the way for LNGdevelopment

Progressing DevelopmentConcept Evaluation

Domestic market supply

LNG export

120

A-1 DiscoveryDST Pending

Proposed Appraisal

Locations

GOM OCSBlock Outline,24 Blocks


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Global LNG Demand and Cost StructureEastern Med projects well positioned to supply a growing market

121

Global LNG Supply and Demand (MMtpa)

0

100

200

300

400

2012 YEDemand

Plants UnderConstruction

2022Demand

Newprojectsramp-up

partly

offset bydecline inexistingplants

Source: Poten and Partners

LNG Cost of Supply ($/MMBtu)

1 US Gulf Coast assumes projects purchase feed gasat Henry Hub prices ($5.50/MMbtu assumed)2 Shipping to Far East

1

2

0

2

4

6

8

10

12

14

Israel Cyprus Mozambique US Gulf Coast Australia

Upstream Liquefaction Shipping

SupplyGap

Israel Cyprus Mozambique U.S.Gulf Coast* Australia

Shipping**

* U.S.Gulf Coast assumes projects feed gasat Henry Hub prices ($5.50/MMBtu assumed)

** Shipping to Far East


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Eastern Mediterranean ExportsProgressing multiple options

Onshore LNG

Sites in 3 different countries have been evaluated (Israel, Cyprus and Jordan)

Plan to complete Pre-FEED by 2Q 2013 and competitively bid FEED and EPC stages

Floating LNG Tamar FLNG being evaluated 3.4 MMtpa capacity, target start-up ~2018

Leviathan FLNG preparations underway to commence pre-FEED; providesalternative to onshore LNG

Pipeline Export Options

Strategic Partner to Provide Additional Resources andExperience in Developing Export Project(s)

122


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31% CAGR Over Next Decade

Significant Exploration Potential Remains

0

400

800

1,200

1,600

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

MMcf/d

Mari-B/Noa/Pinnacles Domestic Tamar Domestic

Leviathan Domestic Cyprus A Domestic

Leviathan Export Cyprus A Export

Eastern Mediterranean Production OutlookSignificant growth underpinned by Tamar, Leviathan and Cyprus A

123

10-Year CAGR of31%

Net Production

5-YearCAGR of 40%


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Eastern MediterraneanDomestic demand driving near-term value

Tamar Online in April 2013 withCapacity of 1 Bcf/d Gross

Sales average 700 MMcf/d after start-up

With Expansion Average GrossSales Reach 1 Bcf/d for 2015

Israel Domestic Natural Gas Demand Growsat 15% CAGR 2012 2017

Leviathan Phased Development AcceleratesValue Delivery

Targeting capacity of 750 MMcf/d for domestic market in 2016

Cyprus Discovery Supports Long-Term Growth Profile

Strategic Partner Adds Substantial Value to Leviathan

10-Year Production CAGR of 31% Underpinnedby Tamar, Leviathan and Cyprus A

124


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Appendix


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Period WTI ($/Bbl) Brent ($/Bbl) Henry Hub ($/Mcf)

2012 $90.00 $100.00 $3.00

2013 $90.00 $100.00 $3.50

2014 $90.00 $100.00 $4.00

2015 $90.00 $100.00 $4.25

2016 $90.00 $100.00 $4.50

2017 +

$90 through2019 then

+ 2% / yr

$100 through2019 then

+ 2% / yr

+ $0.25 / yrthrough 2022 then

+ 2% / yr

Price Assumptions


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Defined Terms

Term Definition

All-in Reserve Replacement Reserve changes from all sources divided by total production for a given time period

Cash Flow at Risk (CFAR) The difference between NBL's base plan Cash Flow from Operations and NBL's Cash Flowfrom Operations at the 95% worst case scenario based on a simulation of commodity pricesusing a mean reversion model

Debt Adjusted per ShareCalculations Normalizes growth funded through debt by converting the change in debt into an equivalentamount of equity shares using an average stock price. The equivalent shares are netted withtotal shares outstanding which impacts the per share calculations of reserves, production andcash flow.

Discretionary Cash Flow Cash Flow from Operations excluding working capital changes plus cash exploration expense

Free Cash Flow Operating Cash Flow less Organic Cash Capital

Funds from Operations (FFO) Cash Flow from Operations excluding working capital changes

Liquidity Cash and unused revolver capacity

Net Risked Resources Estimated gross resources multiplied by the probability of geologic success and NBLs netrevenue interest

Operating Cash Flow Revenue less lease operating expenses, production taxes, transportation, and income taxes

Organic Capital Capital less acquisitions

Organic Cash Capital Capital less capitalized interest, capital lease payments, and acquisitions

Peers Investment Grade Non-Investment Grade

APA, APC, DVN, EOG, MRO, MUR, PXD, SWNCHK, CLR, COG, NFX, PXP, RRC

Return on Average CapitalEmployed (ROACE)

Earnings before interest and tax (EBIT) plus asset impairments and unrealized mark tomarket derivatives divided by average total assets plus impairments less current liabilities

Total Debt Long term debt including current maturities, FPSO lease and JV installment payments

2012 analyst east med

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