While you wait. write down one question we ll collect them in a moment and address some of them later. Repsol Sinopec Resources UK

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1 While you wait write down one question we ll collect them in a moment and address some of them later 1

2 Share Fair Floor Plan 2

3 Who are we? Limited is an oil and gas exploration and production company operating in the North Sea. We are an organisation committed to safe, sustained, cost-effective production and to responsible stewardship of a mature North Sea operating portfolio. 3

4 Company Timeline Talisman Energy Inc. established The company acquires three producing fields from BP Exploration - the Beatrice, Buchan and Clyde fields First oil produced from the Hannay and Halley fields Talisman extended its portfolio in 2006 to include 100% ownership of the Fulmar and Auk fields Sinopec International Petroleum Exploration and Production Corporation (Sinopec), Sinopec acquired a 49% equity interest in Talisman's UK North Sea business. Renamed as Talisman Sinopec Energy UK Limited Maersk Oil UK Limited received approval to develop the Flyndre & Cawdor fields. The fields will be co-developed as a subsea tie-back to the Clyde platform Talisman announced that its Board of Directors approved a transaction relating to the acquisition of Talisman by Repsol. Here in the North Sea, the transaction meant that Repsol would acquire Talisman s 51% interest in TSEUK Talisman Sinopec Energy UK Limited renamed as Repsol Sinopec Resources UK Limited First oil achieved from Montrose Area Redevelopment and from the Maersk Oiloperated Flyndre development Continue to control costs to create a platform for further investment in core assets Optimise costs for decommissioning of other assets 4

5 Our shareholders In 2015 the then- Talisman Energy Inc announced that its Board of Directors had approved a transaction relating to the acquisition of Talisman by Repsol This included its 51% equity interest in what was formerly Talisman Sinopec UK and is now known as Repsol Sinopec Resources UK 5

6 Our shareholders Addax Petroleum is a subsidiary of the Sinopec Group, one of the largest oil and gas producers in China, the biggest oil refiner in Asia and the third largest worldwide. Countries of operation: Nigeria, Gabon, Cameroon, Kurdistan Region of Iraq and UK North Sea Service offices in Geneva (Switzerland) and Houston (USA) Shareholder Sinopec Group headquartered in Beijing (China) In July 2012, Talisman Energy Inc. announced that it had reached an agreement in the North Sea with Sinopec International Petroleum Exploration and Production Corporation (Sinopec), whereby Sinopec acquired a 49% equity interest intalisman's UK North Sea business Addax Petroleum's mission is to create value through successful exploration, development and production of oil and gas resources whilst contributing to the socio-economic development of its host societies and maintaining environmental sustainability The Company aims to grow its business through reinvestment and strategic acquisitions in Africa, the Middle East, the North Sea and any other areas with proven potential, supported by long-lasting relationships with all its stakeholders 6

7 UK Operations Headquartered in Aberdeen, Scotland We have interests in 52 fields, of which we operate 41, on the UK Continental Shelf We have a total of 11 offshore installations (ten fixed and one floating) We also have onshore terminals at Flotta in Orkney and at Nigg Bay in the Cromarty Firth Beatrice Now being dismantled in Shetland 7

8 Production is based on 8 months of actuals 4 months of forecast Claymore Tartan Piper MonArb Buchan Bleo Holm Clyde/Orion Fulmar Auk Saltire Quad 16 Non-Operated Enoch/Blane

9 2015 to 2017: transforming our business We have: - Successfully completed our major capital projects MAR and Flyndre - Taken the Buchan asset off station and it is being dismantled in Shetland - Shutdown Beatrice and Saltire which are both planned for decommissioning We have also: Reduced lifting cost per per barrel from by 57% $116 between to $ Improved production efficiency efficiency from by 17% 33% to 66% Reduced Improved lifting HSE cost per barrelperformance by 57% between We have made great progress but we still have work to do to fulfil our potential as a sustainable business in a lower for longer environment. 9

10 Supply Chain Transformation Journey so far.. We ve moved from a single contractor multi-asset approach to a multi-contractor approach Tier 1 contractors = 80% of annual spend CPM model not mandated or standardised Contractor categorisation driven by HSE tiering alone 2017 New contracting strategies reducing reliance on single contractors - increased competition - 27 Tier 1 contractors=80% of annual spend) Requirement to provide CPM data to move contractors in or out of a category New Services Criticality and Contract Tier Assessment Tools driven by HSE, Business, Supply Chain and Operational elements New SharePoint Site to facilitate reporting 10

11 Contract Performance Management (CPM) PROCESS Contractor categorisation driven by Services Criticality Assessment and Contract Tier Assessment Tool: Includes HSE, Business, Supply Chain and Operational elements Tier specific KPI Scorecard, meeting cadence and terms of reference developed Repsol Sinopec is reviewing its use of FPAL for bid lists and pre-qualification in line with the OGUK Task Finish Group on Supplier Qualification and Certification Services in the UKCS. We do not subscribe to Verify and commission our own HSE and Quality audits as needed PROCESS HD BAND = MD BAND = LD BAND = CPM REQUIREMENT FULL LITE VERSION(S) FPAL ONLY SCORECARD DETAILED DETAILED / LITE DETAIL ON-LINE FEEDBACK ONLY INTERNAL PRE-MEETING MONTHLY QUARTERLY / BI-ANNUALLY NOT REQUIRED MEETING WITH CONTRACTOR MONTHLY QUARTERLY / BI-ANNUALLY NOT REQUIRED LITE V1 = LITE V2 = REPORTING Safe efficient operations PEOPLE 11

12 Forward work plans / tendering activity SERVICE / DESCRIPTION ESTIMATED TENDER DATE PROVISION OF BULK HOSES Q PROVISION OF PIPE FITTINGS AND FLANGES Q PROVISION OF HVAC SERVICES Q PROVISION MEDICAL SUPPLIES Q PROVISION OF BUSINESS TRAVEL SERVICES Q PROVISION OF PRESSURE GAUGES Q PRE-DECOMMISSIONING ENVIRONMENTAL AND SUBSEA SURVEY Q HEAVY DUTY JACKUP UNIT Q GALLEY SUBSEA WELL REINSTATEMENT Q BUCHAN PLUGGING AND/OR ABANDONMENT TBC 2018 MONROSE HYDRAULIC WORKOVER UNIT TBC 2018 PROVISION OF FILTRATION PRODUCTS Q PROVISION OF MOBILE COMMUNICATIONS Q PROVISION OF HOSES AND FITTINGS Q PROVISION OF INDUSTRIAL, MEDICAL AND SPECIALIST GASES Q PROVISION OF PRINTER AND REPROGRAPHIC SERVICES Q PROVISION OF PRINTER MAINTENANCE AND SUPPLY Q PROVISION OF OFFICE STATIONERY Q PROVISION OF MECHNICAL INTEGRITY SERVICES Q PROVISION OF MARINE MANAGEMENT SERVICES Q PROVISION OF LIFEBOAT MAINTENANCE SERVICES Q

13 Can you tick our boxes? Identify and raise any potential solutions which can help unlock full potential of the UKCS Be focused on quality, delivery and performance Bring innovative technology and services to operations and decommissioning Commercial innovation willing to adopt new commercial models Spend our money as if it were your own and be willing to work with agreed KPIs 13

14 then we can tick yours Committed to engage with contractor community in a consistent and rigorous fashion Be open to new ways of working Aspire to follow Oil & Gas UK Supply Chain Code of Practice Share feedback on weakness areas or where things aren t going to plan Engage in performance 2 way feedback Continuous improvement through Performance Management metrics 14

15 Thank you Submitted questions 15