6 April, 2017 | Gastech Exhibition & Conference 2017

Juro Baba

General Manager, Indonesia Oil & Gas Business Dept.

A New Prototype for LNG Development

Table of contents

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 2

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 3

Brunei

(25.0%)

Sakhalin II(10.0%)

Tangguh(9.1%)

MLNG 1/2/3

(4-10%)

LNG Canada

(15.0%)

Browse

(7.2%)Wheatstone

(3.2%)

NWS

(8.3%)

DSLNG

4

Under ConstructionOperating

Planning

First LNG project for Mitsubishi as the operator

MC：44.9%

Cameron LNG

(11.6%)OLNG

(2.8%)

45% ownership of Mitsubishi Corporation in DSLNG is the largest project

participation in Mitsubishi’s global LNG portfolio.

Iraq SGU

(5.0%)

QLNG

(3.0%)

Plant and CPP at a glance Proprietary & confidential 5

Senoro

CPP

Matindok

CPP

Donggi CPP

DSLNG Plant located in Luwuk, Central Sulawesi Province, Indonesia,

producing and supplying 2mtpa of LNG with only 1 train, 1 tank and 1 jetty.

Ring Road

Patrol Road

MCHE FlareLNG Tank

LNG JettyUtility Area

FW Tank

AFC

Construction Office

Admin Bldg

Construction Camp

Refrigerant StorageProcess Train

Laydown Area

Matindok PSC 0.61tcf

Senoro- Toili PSC 1.73tcf

Proprietary & confidential 6Proprietary & confidential 6Joint venture and contractual framework

Ultimate shareholder Mitsubishi Corporation 44.9%, Pertamina 29.0%,

KOGAS 15.0%, Medco 11.1%

Upstream Senoro Gas Field

Pertamina 50.0%,Medco 30.0%,

Mitsubishi Corporation 10.2%,

KOGAS 9.8%

Matindok Field

Pertamina 100.0%

Donggi Gas Field

Pertamina 100.0%

Midstream EPC contract

JGC

Maintenance Contract Service Agreement

GE

Downstream (SPA) JERA

1.0mtpa

KOGAS

0.7mtpa

Kyushu Electric

0.3mtpa

Shipping (TCA) LNG Maleo

MOL, NYK, K-LINE

Hyundai Utopia

Hyundai LNG Shipping

Finance Project Finance

JBIC, Korea Eximbank, etc

DSLNG’s core competency deriving from a full contribution by various first

class stakeholders.

Proprietary & confidential 7

2015 Aug

DSLNG project milestone

Founding of

2016

39 Cargoes Shipment

1997 Dec1999 April

Gas Discovery Start of PSC

Founding of PT.DSLNG in 2007 accelerated the development of the project after

14 years of long interim period since the start of Senoro-Toili PSC in 1997.

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 8

New prototype for LNG project Proprietary & confidential 9

Challenges

Single train operation

Diminishing economy

of scale

Absence of IOC

Conventional LNG project

Large scale gas

field/production

High development/

EPC cost

Long term commitment

by the buyers

New prototype

Monetization of

small scale

gas reserve

Less development/

EPC cost

Shorter term/

small volume

commitment

by the buyers

Luwuk, 3 Mei 2012

Proactive approach for single train operation (1) 10

CAPEX control EPC lump-sum turnkey contract

Adaption of GE Frame 5D for both

GTC/GTG to reduce procurement

cost for spare parts

Proprietary & confidential

Full CAPEX control and improvement of operational efficiency,

overcoming various challenges in the single train operation.

Operational efficiency Installation of recovery heater to

minimize flare loss from scrub column

Optimization of “Holding” and “Loading”

mode operation

Preventive maintenance

Collaborative approach for a “smooth

start-up”

EPC within planned

budget

Minimum change order

Plant availability of 93%

Thermal Efficiency of

97%

15% increase of LNG

production (nameplate

capacity of 2.0mtpa vs

2.3mtpa in 2016)

Achievement

Luwuk, 3 Mei 2012

11Proprietary & confidentialProactive approach for single train operation (2)

One of the shortest working number of days spent from gas-in to 1st cargo in

LNG history.

Close communication with

involving parties (i.e

upstream, EPC contractor)

and full preparation since

the early developing stage.

Proprietary & confidential 12Project partner alignment

Over 30 years of experience in LNG

marketing, operation and strong ties

with Government of Indonesia

Technical support/

construction management

and financing expertise.

Also a off-taker.

Expertise in domestic

upstream business and

corporate task (i.e HR)

Long standing experience in LNG

market and expertise in project

financing

Strong alignment and collaborating effort made by all the shareholders, each

leveraging its own strengths to maximize the output.

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 13

Proprietary & confidential 14Operator vs. Non-Operator

The largest shareholder of the

project

Responsible for project

management

Full access of information

Approx. 30-40 manpower involved

Limited influence on important

decision making process

Limited access for project

intelligence (i.e. periodical report)

Limited opportunity to contribute in

the operation

Approx. 5-10 manpower involved

Front end role in the project management as an operator requires a further

level of commitment and responsibility for Mitsubishi Corporation.

Operator Non-Operator

Start Up / OperationCorporate

GovernanceFinance

Commercial OthersEPC / Technical

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 15

Proprietary & confidential 16A key to success

“Contribution to Indonesia”

Respect for property and

natural resources of

Indonesia

Local community

contribution“Establishing corporate

culture”

“Safety always first”

motto

Respect for diversityRelationship

management with all

stakeholders”

Close and reliable

communication

Win-win relationships

1.Project overview

2.New prototype for LNG development

3.Challenges for Mitsubishi Corporation

4.Key to success

5.Conclusion

Proprietary & confidential 17

Conclusion Proprietary & confidential 18

Proactive approachSmooth and efficient operation

Max production2.3mtpa in 2016, above its name capacity of 2.0mtpa

Capex reductionEPC within budget; minimum change orderCSRInvestment Award in 2016 for contribution to local economic growth

Achievement thus far…

Success of DSLNG project indicates that development of marginal scale

resources with small LNG plant can be considered as a new prototype for LNG

development.

“Safety always first” mottoZero Day-Away-From-Work-Case (DAFWC) and fatality in 2016

19

Thank you!

Terima ｋasih!

감사합니다!

ありがとうございます！