Engineering and Procurement We are designing and purchasing everything we can firmly identify

Tamar Field Development NPC PROJECT UPDATE 13 JUNE, 2010 1

Engineering and Procurement We are designing and purchasing everything we can firmly identify Offshore and Onshore FEED Studies Subsea FEED Engineering complete Subsea Detail Engineering in progress Onshore FEED Engineering 95% complete Onshore Detail Engineering in progress Mari-B gas storage Conceptual study complete; preparing basis of design Offshore Surveys Onshore coring and monitor wells 100% complete Nearshore shallow water survey 100% complete Deepwater Survey Geotechnical 100% Geophysical 100% Met ocean buoys 3rd recovery/ redeployed on 5 June 2010 Procurement Awarded and in Fabrication Subsea Trees (July 2009) Drill Rig (August 2009) Line Pipe (March 2010) Umbilical (March 2010) Large Bore Valve (March 2010) MEG Reclamation System (March 2010) Subsea Manifold (April 2010) Subsea Control System (April 2010) Heat Media Heaters (April 2010) Slug Catcher Long Lead Pipe and Fittings (May 2010) Subsea Distribution Equipment (May 2010) 2

Major Awards Map Truly An International Project 3

Production Gathering Extended Cluster Arrangement Single six-slot production manifold commingling well inventory from 5 or 6 wells ¾ ¾ ¾ ¾ Project Priority of High Safety and High Reliability Greatest flexibility for future development High redundancy Ability to operate limited number of wells TAMAR 2 T-P1-N-B1 Future expansion to a ten or twelve well system is based on an add-on philosophy duplicating this arrangement T-P1-NC-C1 TAMAR 1 Tamar Field Development T-P1-C-B1 11230901-001 June 5, 2009 4

Subsea Equipment 1700 m water depth Dual Main Umbilicals (West and East) Subsea Distribution Assembly (SDA) Manifold Jumper Dual Bundled Main 16-inch Pipelines and MEG line (West and East) Pipeline End Termination (PLET) Infield 10-inch Umbilical Flying Leads Flowline End Termination (FLET) Infield 10-inch Flowline Subsea Tree 5

Subsea Equipment 1700 m water depth SDA Dual Main Umbilicals UTA (West and East) Subsea Distribution Assembly (SDA) Manifold Flying Leads Manifold Dual 16-inch header, Six 10-inch connectors Dual aft 16-inch connectors Flowline End Termination (FLET) Xmas Tree 16-inch rigid steel jumper Jumper 10-inch rigid steel jumper FLET PLET Dual bundled Dual Bundled Main 16-inch 16-inch main pipeline & Pipelines and MEG line (West 4.5 inch MEG supply line and East) Pipeline End Termination (PLET) Infield 10-inch Flowline Flying Leads Infield 10-inch Umbilical 6

Subsea Manufacturing Update Subsea Trees (Awarded July 2009) Tree#1 - completed by end of June 2010 Tree #2 planned completion August 2010 On schedule for delivery of all trees December 2010 Line Pipe Pipelines (Awarded March 2010) 14% Finished uncoated pipes 23% production in progress including steel making, rolling, head treatment On schedule to begin shipments in July 2010 and completion of shipments by February 2011 Meg Line (Awarded March 2010) Rolling Campaign underway Billets on order for 100% of pipe 35,335 meters of pipe is completed and Ultrasonic testing is underway on this pipe On schedule for Delivery November 2010 Umbilical (Awarded March 2010) Steel Tubes: 100% of the infield ½ inch and 1 inch tubes are now complete and awaiting transportation to Mobile. 4% of the 1.25inch infield tubes are complete. 2% of the 1 inch main tubes are complete. Electric Cables 3% of the 6mm are complete (1 reel) On schedule to deliver, but delivery has slipped to June 2011 vs April 2011 due to controls deliveries 7

Subsea Manufacturing Update Large Bore Valve (Awarded March 2010) Engineering 90% complete Forgings have been ordered 50% complete with Procurement Manufacturing 5% complete Overall % complete at 25% On schedule for delivery October 2010 Subsea Manifold (Awarded April 2010) Engineering 10% complete Raw Material Procurement activities are underway 10% complete Overall % complete at 7% On schedule for delivery August 2011 Subsea Control System (Awarded April 2010) Overall 12% Complete Detailed design in progress Long lead procurement initiated On schedule for delivery April 2011 Subsea Distribution Equipment (Awarded May 2010) Overall 3% Complete Detailed Engineering initiated On schedule for delivery starting Jan. 2011 thru May 2011 8

Umbilical Steel Tube Manufacture CURRENT STATUS STEEL TUBES: - 100% ½ inch and 1 inch in field tubes are now complete and awaiting transportation to Mobile - 4% (12.5 KM pilgered) of the 1.25 inch infield tubes are complete - 2% (of the 1 inch main tubes are complete -Totaling 192KM of ½ & 173KM of 1 -Delivery slip from April 2011 to June 2011 9

Line Pipe Production Round Bar Exiting Furnace CURRENT STATUS 14% Finished uncoated pipes 23% production in progress including steel making, rolling head treatment On Schedule to begin shipments in July 2010 thru Feb. 2011 Billets Loading into Furnace CURRENT STATUS -Rolling Campaign underway -Billets on order for 100% of pipe -35,335 meters of pipe is completed and Ultrasonic testing in progress -On schedule for Delivery November 2010 10

TAMAR OFFSHORE PLATFORM REVIEW 11

OFFSHORE ALTERNATIVES EVALUATED Two International Engineering Firms (Intec WorleyParsons Group & EDG Consulting Engineers) Independently Evaluated Offshore Platform Alternatives Alternative #1 Pressure Reduction Offshore ONLY with Onshore Gas and Liquid Processing Alternative #2 Gas and Liquid Processing Offshore NOTE The platform data presented here is based on actual projects 12

ALTERNATIVE #1 PRESSURE REDUCTION OFFSHORE PLATFORM 13

Alternative #1 Pressure Reduction Platform Onshore Facility (120-140 dunam) Gas Pipelines Gas Export Pipeline 2-16" Production Pipelines Buffer Platform Subsea Facilities 2 - PL MEG Pipelines 14

Tamar to Shore Profile 0 0 500 500 2000 meters below sealevel 2000 meters below sealevel Distance Tamar to Platform is about 84 km Distance Platform to Shore is about 10 km 15

100m Water Depth line Continental Shelf is near the Coast 16

Alternative #1 Onshore Facilities Still Require 120-140 Dunam Before Entrance Into INGL Israel has a unique situation with large planned and unplanned hourly changes is flow rates MEG Reclamation Water Treating Fire Lagoon Safety Systems Liquid Processing/Stabilization/Sales Gas Processing/Filtration/Sales Tank Storage Slug Catching Injection Systems/Utilities/Flaring Pig Traps Quarters/Control Room/Warehouse/ Communications tower 17

ALTERNATIVE #2 Gas & Liquid Processing Offshore Platform 18

ALTERNATIVE #2: MAJOR EQUIPMENT OFFSHORE WITH ONSHORE FACILITY SIMILAR TO AOT WITH 60-80 DUNAMS Two or three platforms 800 ft Bridge Gas Pipelines Onshore Facility (60-80 dunam) Vent Platform Production Platform MEG Platform Gas Export Pipeline 2-16" Production Pipelines Quarters & Utility Platform Subsea Facilities 2 - PL MEG Pipelines FSO 19

Alternative #2 - Onshore Facilities Still Require 60-80 Dunams Before Entrance Into INGL Israel has a unique situation with large planned and unplanned hourly changes is flow rates Gas Final Filtration Gas Flow Control/Sales Condensate Sales Pig Traps Subsequent liquid tank storage Fire Lagoon Safety Systems Communications Tower Control Room/Warehouse 20

Alternative Schedules Year 2010 2011 2012 2013 2014 2015 Activity Quarter 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Subsea Development to Shore (BaseCase) - Onshore Gas Plant Detail Design 15 3 3 3 3 3 Procurement 15 3 3 3 3 3 Construction (Including Siteworks) 24 3 3 3 3 3 3 3 3 Hook-up and Commissioning 6 3 3 Pre-FEED thru HUC 30 3 3 3 3 3 3 3 3 3 3 Alt #1 Pressure Reduction Offshore Platform Platform Pre-FEED 4 3 1 Platform FEED 12 3 3 3 3 Detail Design 15 3 3 3 3 3 Onshore Fabrication 15 3 3 3 3 3 Transportation & Offshore Installation 6 3 3 Hook-up and Commissioning 6 3 3 Pre-FEED thru HUC 48 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 Alt #2 - Gas and Liquid Processing Offshore Platform Platform Pre-FEED 6 3 3 Platform FEED 15 3 3 3 3 3 Detail Design 24 3 3 3 3 3 3 3 3 Onshore Fabrication 27 3 3 3 3 3 3 3 3 3 Transportation & Offshore Installation 3 3 3 Hook-up and Commissioning 6 3 3 Pre-FEED thru HUC 63 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 * The TAMA and Israel permitting operations are not included in the schedules ** This assumes that the TAMA is approved by December 2010 23

Similar Fixed Platform Options From Intec WorleyParsons Group Type of Platform General Description Analog Platforms** Comments Platform Complex Two, bridge-connected platforms each platform on the order of 14,000Te with appropriate sub-structure. Bayu-Undan (48 mths) Long design and build time. Reliability is compromised by heavy reliance on onshore facilities. Very Large Single Platform Topsides would need to be on the order of 28,000Te with an appropriate substructure. Malampaya (48 mths) North Rankin A (54 mths) North Rankin B (60-66 mths) Platong II (62 mths) North Pailin (60 mths) Long design and build time. Reliability is compromised by heavy reliance on onshore facilities. Minimal Single Platform Single minimal topsides, normal power produced onshore, MEG regeneration onshore, NGL storage onshore. Could support Pressure Reduction Angel (unmanned, 44 mths) Pluto (unmanned, 48 mths) Reliability is compromised by unmanned operation. Unmanned operation not practical offshore Israel. ** Timelines include FEED, Detail Engineering, Procurement, Installation and Commissioning (EPIC) phases. 24

Gas Production Platforms per Intec WorleyParsons Group North Pailin Bayu-Undan Platong II Angel North Rankin B Malampaya 25

MARI- B DEVELOPMENT OFFSHORE PLATFORM & ONSHORE FACILITY 26

Yam Tethys Mari-B Offshore Platform Offshore Israel 27

MARI-B PLATFORM SCHEDULE Jan 2000- Feb 2004 Task Nam e MARI B- PLATFORM Mari B Dis covery Concept/Feasiblity/FEED ENGINEERING PLATFORM SUBSEA PROCUREMENT PLATFORM EQUIPMENT SUBSEA EQUIPMENT PLATFORM CONSTRUCTION DECK JACKET PLATFORM LOADOUT AND INSTALLATION SECURITY PLATFORM OFFSHORE HOOKUP TAMA PLANNING ENGR & PERMITTING & ROW PIPELINE/FLOWLINE INSTALLATION ONSHORE CONSTRUCTION HOOK-UP/COMMISSIONING FIRST GAS 2000 2001 2002 2003 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2/14 28

Comparison of Alternates # 1 & #2 to Yam Tethys Mari-B Offshore Platform Platform Topsides Weight - Tons Project Schedule Months Alternate #1 - Pressure Reduction Offshore Platform Alternate #2 - Gas and Liquid Processing Offshore Platform Yam Tethys - Mari-B Platform 7000-9000 ~32000 5000 42-51 *Post Site Selection 60-63 *Post Site Selection 48 * Offshore Platforms not only require the process facilities but they also require the infrastructure that is not necessary onshore. This includes, potable water, extensive living accommodations, cranes, survival systems, etc. 29

OFFSHORE PLATFORM CONCLUSIONS General Offshore Host Platform is technically possible Both offshore platforms will require an onshore facility before entrance into the gas infrastructure Platform structural engineering cannot proceed without completion of the TAMA process to determine the platform final location. Soil borings and water depth to start Israel has a unique situation with large planned and unplanned hourly changes is flow rates. Reliability Due to the remote access and complexity of the offshore equipment, Reliability Availability & Maintainability (RAM) studies on similar projects by both engineering firms have determined there would be 5% downtime. This equals 18 days of unscheduled downtime per year. We would strive to do better but this is an industry standard. Onshore facilities would allow easier access for repairs and less weather outages. A Main Driver on reliability is Offshore Slug Handling ( not a Mari-B issue) Schedule First Gas for Alternative #1 is 4 years after the exact onshore & offshore locations are determined. First Gas for Alternative #2 is 5 years after the exact onshore & offshore locations are determined. Other: Weather downtime will occur if an FSO ship were to be included Platform will be seen from Beach May still need tank storage onshore 30

BACK UP INFORMATION 32

Field Development Concepts Durations per Intec WorleyParsons Group Representative subsea tieback, platform and FPU project durations, compiled from completed projects, are tabulated: Activity Subsea Tieback with Onshore Gas Processing Shallow Water Fixed Platform Semi-Sub Floating Production Unit (concurrent months) (concurrent months) (concurrent months) FEED 6 12 ( up to 18) 12 ( up to 18) Detail Design 12 12 15 Procurement 12 15 18 Onshore Fabrication 15 24 27 Offshore Installation 8 3 3 Hook-up to Start-up 5 6 6 Total (FEED & EPIC) 6 + 24 = 30 12 + 48 = 60 12+ 51 = 63 33