Bahrain Oil & Gas PresentationApril 2019

A. Oil & Gas Sector Overview -Bahrain

◼ The Oil & Gas Holding Company B.S.C. (c) “nogaholding” was established by Royal Decree No. 77 for the year of 2007,

promulgated on August 15, 2007

◼ A Government of the Kingdom of Bahrain body with the mandate of proposing and implementing government policy, and setting

standards for the Oil & Gas industry in Bahrain

◼ Provides a strategy link with the Government of the Kingdom of Bahrain

◼ Aims to create shareholder value by the successful management of oil & gas portfolio companies

◼ Roles of nogaholding:

✓ Portfolio Management

✓ Governance

✓ Promotion of Operational Excellence and Best Practice

✓ Best Practice Sharing

✓ Develop Intellectual Capital

Vision Mission

nogaholding aspires to

contribute to national economic

diversification and growth by

achieving sustained

performance excellence from a

portfolio of investments

nogaholding's mission is to

build, develop, and manage a

portfolio of oil and gas industry

related companies by investing

effectively and promoting

excellence

▪ Integrity

▪ Ingenuity

▪ Entrepreneurship

▪ Commitment

▪ Accountability

Values

nogaholding, the strategic investment and development arm of the National Oil & Gas Authority (“NOGA”) plays a fundamental role in the execution ofthe strategic plans of NOGA and stewardship of all of the Kingdom of Bahrain’s long term investment in the oil & gas industry

nogaholding Overview

Bahrain announced its biggest oil discovery ever

◼ On April 4, 2018, The Kingdom of Bahrain announced the discovery of a large tight oil and pre-Khuff gas off the Kingdom's western coast. The field covers

2,000 square kilometres (772 square miles) in shallow waters off the Kingdom’s west coast, which faces Saudi Arabia

◼ Tight oil is a form of light crude oil held in shale deep below the earth’s surface that is extracted with hydraulic fracturing, or fracking, using deep

horizontal wells

◼ 80 billion barrels of Original Oil in Place (P50 OOIP) and significant gas reserves in two accumulations below Bahrain’s main gas reservoir

◼ The impact of the discovery is contingent on how much of it is extractable. We expect the newly discovered resource to be “on-production” within 5 years.

◼ Agreement has been reached with Halliburton to commence drilling on two further appraisal wells in May 2019, to further evaluate reservoir potential,

optimize completions, and initiate long-term production

International consultants DeGolyer and MacNaughton, Halliburton, and Schlumberger are heading the project with Tatweer

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Major Oil & Gas Projects in Bahrain - Location

AB Pipeline

Offshore field

B. Bahrain Opportunities

1929 BAPCO established by Standard Oil Company of California

1932 Well No. 1 - First oil discovery in the Southern Part of the Arabian Gulf

1940 First Seismic Survey

1948 Discovery of natural gas in Khuff

1961 First offshore exploration well drilled

1998 First 3D Seismic Survey

2007 Established Tatweer Petroleum

2015 Discovery of Gas in Devonian Section

2017 Discovery of Khalij Al Bahrain Basin

Oil & Gas History

Berri

Rabib

Abu Sa’fah

Qatif

Dammam

Abqaiq

Ghawar

Dukhan

North Field

Al ShaheenAl Rayyan

G StructureFerdowsiJaryadJana

Samin

Fadhili

Khurasiyah

QATARSAUDI

ARABIA

Offshore Area:

~ 7560 km2

NOT TO SCALE

Offshore Area:

~ 7459 km2

Geographical Setting

Stratigraphic Column

DATA QUANTITY

2D SEISMIC 12940 lkm

3D SEISMIC 2567 km2

EXPLORATION WELLS 35

DEVELOPMENT WELLS 1800+

PRE-UNAYZAH WELLS 7

REGIONAL GRAVITY, GRADIOMETRY & MAGNETIC DATA

SURFACE GEOCHEMICAL DATA

GEOCHEMICAL DATA MAGNETIC DATA GRAVITY DATAEXPLORATION WELLS & SEISMIC DATA

Available Data

Structural Entrapments

▪ 4-way dip closures

▪ Low Relief Structures

▪ Fault Bound Traps

Stratigraphic Entrapments

▪ Sand Bodies Truncation

▪ Channel Features

▪ Carbonate Mounds (on-laps)

Pre-Khuff▪ Highly under explored.

▪ Huge potential for gas reserves.

Offshore Blocks

TARGETS

Unconventional Opportunity

Parameters P50

Productive Area (acres) 1,469,171

Prospective OOIP (bbls) 81,507,093,009

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PM

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PR

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AL

EXP

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▪ An opportunity to develop, appraise and exploregas reservoirs in the Awali Field.

▪ Established petroleum system with a hugeanticlinal and possible stratigraphic trap.

▪ Established surface facilities, and a market‘thirsty for gas’

2500 ft

4000 ft'

6000 ft

12000 ft

15000 ft

20000 ft

Pre-Unayzah Gas

9.5 bn barrelsOil originally in place

24 tn cubic feetGas originally in place

10-20 tn cubic feetGas originally in place

Oil zones

Heavy oil zones

Shallow zones

Bahrain zones

Arab zones

Khuff Zones

Pre-Unayzah Zones

Deeper Exploration Targets

Gas zones

Bahrain Field Development

24 tn cubic feetGas originally in place

10-20 tn cubic feetGas originally in place

Oil zones

Heavy oil zones

Shallow zones

Bahrain zones

Arab zones

Khuff Zones

Pre-Unayzah Zones

Deeper Exploration Targets

Gas zones

Bahrain Field Development

9.5 bn barrelsOil originally in place

- Potential for EOR in producing oil zone - Potential for Heavy Oil in shallow zones- Estimated only 12% of total OOIP recovered

DEVELOPMENT OPPORTUNITY

C. Bapco ModernizationProject (BMP) and Future Opportunities

Introduction to The Bahrain Petroleum Company B.S.C. (“Bapco”)

Overview

Key statistics

267kb/d capacity

Expected to increase to

380kb/d post-BMP expansion

◼ Wholly owned by the Government of Bahrain, Bapco is a key refining player in the Arabian Gulf and a major contributor to the economic development of the Kingdomof Bahrain

◼ Bapco currently owns and operates a 267kb/d export oriented, middle distillate based refinery with its own storage and port-facilities on Bahrain’s Sitra island

◼ Crude is supplied from the domestic Bahrain field as well as from Saudi Arabia via a direct pipeline

◼ Bapco’s exports markets are in the Middle East, India, the Far East, South East Asia and Africa

◼ The Sitra Refinery commenced operations in 1936, as the first refinery in the Gulf, progressively upgrading its facilities through a series of strategic investment programsin order to improve its position in the region

◼ Bapco has embarked on a major expansion and upgrade project, the Bapco Modernization Program (“BMP”), in order to sustain and build on Bapco’s position

◼ BMP will increase the refinery’s nameplate capacity from 267 to 380 kb/d, increase its efficiency and profitability through a higher yield of high value products andimprove the facility’s environmental footprint

◼ Bapco is further engaged in the marketing of crude from the Abu Saa’fa field and ancillary businesses

◼ Bapco is also involved in training & development and environmental initiatives in the Kingdom of Bahrain

170storage tanks

Located at different sites,

with a total capacity of 14mn

barrels

H.E. Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa

Minister of OilChairman of NOGAChairman of nogaholdingChairman of Tatweer Petroleum

Chairman (2015 - present)

▪ Installation of 60kb/d HVGO Hydrocracker and revamp of Mild Hydrocracker to Low Sulphur Diesel Hydrotreater

▪ The US$700mm project enabled the Refinery to produce 100% of its diesel production as ultra low sulphur diesel (Euro-V (10

ppm sulphur) diesel)

▪ Introduction of a US$430mm Lube Base Oil Plant producing 400,000 tonnes per year of Group III lubricant base oils

▪ The plant is a joint venture between Neste (45% interest), nogaholding (27.5% interest) and Bapco (27.5% interest)

▪ Total Refinery throughput expected to increase to 380kb/d

▪ Overall product yield expected to be significantly enhanced with high value diesel and Jet Fuel is expected to almost double

post BMP implementation

▪ Construction commenced in 2018 with a targeted completion date of 2022

Inauguration of waste water

treatment plant at a cost of US$120mm

Inauguration of Bapco Lubricants

1929 1932 1936 1945 1968 2004 2007 2011 2013 2014

Selected key milestones

Low Sulphur Diesel Production Project

(2007)

1

Lube Base Oil Plant(2011)

2

Key expansion programs

1981 1997 1999

The new Bapco is formed following the

merger between Bapco and Banoco

Commencement of construction of ultra

low sulphur diesel complex–75 years

after first oil discovery

The Government assumes 100%

ownership of the Bahrain Refinery

Bapcoestablished by Standard Oil Company of California

The Bahrain Refinery is inaugurated–with a

capacity of 10,000 barrels per day

First oil discovery in the Arabian

Gulf: Well #1 in

Bahrain

Original A-B pipeline laid between Bahrain

and Saudi Arabia(then world’s longest

commercial submarine pipeline)

Bapco reconstituted as joint venture

owned 60% by the Government and 40%

by Caltex

Bahrain Refinery expansion

program completed with 250 kb/d

capacity

Bapco Modernization Program

3

Start-up of Low Sulphur Diesel Production Project

1

Inauguration of Joint Venture Lube

Base Oil Plant

2

Bapco Modernization Program (“BMP”)

3

2009

Inauguration of Refinery Gas

Desulphurisation Project

2018-2022

Bapco: History and precedent expansion programs

Strong operational performance

101.0 97.6 99.0

2015 2016 2017

Production volumes (million barrels)

Key strengths and competitive advantages

✓Strong operational performance

✓Geographical advantage

◼ Advantageous crude supply via direct pipeline from Saudi Arabia

◼ Strategic location to export refined products to countries in the Middle East, Africaand Asia

✓Sitra Terminal Flexibility

◼ Terminal offers customers a flexibility that is ideally suited to niche markets

◼ Customers have demonstrated that they are willing to pay a premium for theflexibility offered despite any additional demurrage charges they may incur

✓Quality of customer service

◼ Amidst the larger NOC neighbours, Bapco has a greater ability to serve smallermarkets where the logistics infrastructure is limited but consumption of petroleumproducts is growing rapidly

✓Diversified client base

◼ Over the past 10 years, the customer base consisted of NOC (3%), IOC (14%), Globaltraders (20%), small regional traders (31%), and end users (32%)

4.6%

81.0%

14.4%

2015

Non-Subsidised crude oil from Bahrain Field

Subsidised crude oil from Bahrain Field

Crude oil from Saudi Arabia

3.9%

82.1%

14.0%

20163.5%

83.2%

13.3%

20173.8%

83.4%

12.8%

6M 20173.1%

83.4%

13.5%

6M 2018

Bapco has consistently achieved strong refining margins significantly above the regional level

Crude oil supply to Bapco

BMP Objectives

▪ The BMP shall improve energy efficiency and lower the Energy Intensity Index (EII) of the Refinery

ENERGY

▪ Increasing crude Refinery capacity▪ Improve the product slate and reduce fuel oil by

residue upgrade▪ Maximizing middle distillate ▪ Improve product quality

CONFIGURATION GROSS MARGIN

Competitiveness & Profitability

▪ All new units shall function in compliance with applicable local environmental regulations as well as international Lender requirements

ENVIRONMENT

Merchant Gross Margins pre/post BMP

Existing Refinery

Post BMP

100%Increase in margins post BMP

Merchant Gross Refinery Margin

Key features and objectives

◼ Increased output, improves the product yield and increases gross margin with the objective of remaining profitable under a wide range of prices

and market scenarios

Refinery

Configuration and

Gross Margin

Energy Efficiency ◼ Expected to improve energy efficiency and lower the Energy Intensity Index (EII) of the Refinery by installing new energy-efficient process units

Environmental

Compliance◼ All new units will function in compliance with applicable environmental regulations, World Bank guidelines and the Equator Principles

Capacity ◼ The BMP is expected to increase nameplate capacity from 267kb/d to 380kb/d and enhance cost efficiencies

Sitra refinery (via field pipeline) Arab Light Crude Supply from Saudi Arabia

Pre BMP~267kbpd Increase to

Post BMPUp to 380kb/d

Pre BMP~220mbpd

(Via existing A-B pipeline)Increase to

Post BMPUp to 350kbpd

(Via new A-B pipeline)

Saudi

Arabia

Crude supply

BMP: Key Features and Objectives