The document discusses the oil and gas industry perspective from TAQA Bratani. It provides an overview of TAQA, the current global supply and demand picture for oil, contributions of the oil and gas industry to the UK economy and tax revenues, and targets for renewable energy generation in the UK by 2020. It also covers the importance of the energy sector to Aberdeen City and Shire from an economic standpoint. Key challenges and opportunities discussed include access to capital, fiscal stability, decommissioning liabilities, and increasing regulation.

1. The economy – what next? An oil & gas industry perspective Leo Koot, managing director, TAQA Bratani

2. Who is TAQA? Abu Dhabi National Energy Company 72.5% Government owned Listed on ADX USD 31.6 billion asset base Strategic focus on Oil & Gas - 135 MMBOE/D Building the largest European gas storage facility Power & Water - 6th largest independent power producer in the world Geographically diversified

3. Operated (100%) North Cormorant South Cormorant Tern, Hudson & Falcon Eider & Otter Pelican Brent System (16%) Non operated (17% - 24%) Brae Hudson Sullom Voe Terminal TAQA Bratani

4. Global supply & demand picture Oil demand vs. supply from existing fields 38 mmbbl/d 2010 demand level, 88 mln bpd 47 mmbbl/d Source: Lambert Energy Advisory, November 2011 34 UK North Seas

5. Oil & Gas delivers 20% of UK’s corporation taxes £293 billion in tax revenues over the last 40 years In 2010/11, the industry paid £8.8 billion in corporate tax on production Currently, oil and gas provide 75% of the UK’s total primary energy In 2020, 70% of primary energy in the UK is still expected to come from oil and gas, even if the 15% target for renewable energy is met *Source: http://www.oilandgasuk.co.uk/economics and Oil & Gas UK Economics Report 2011

6. UK Government Low Carbon Transition Plan 2020 Targets For Power Generation *Source: The UK Low Carbon Transition Plan, National strategy for climate and energy Around 75% of our electricity is currently generated from gas and coal today; renewables will expand to around 30% of our generation by 2020*

7. The importance of the energy sector to Aberdeen City & Shire Economic growth Labour market Population growth Infrastructure Renewable energy UKCS remains an important province Just over 40 billion boe already produced from UKCS* 14-24 billion boe still to be recovered* *Source: Oil & Gas UK Economic Report 2011

8. The business model for the future? Operating model Partner of choice Capable operator Access to capital

9. Northern North Sea Capital intensive Long investment horizon Material decommissioning liabilities Not obviously suited for PE or AIM ‘ Lean’ business approach not enough Operating model Partner of choice Capable operator Access to capital

10. An ideal operating model Key responsibilities in-house Operator Dutyholder Strategic Maintenance Operating model Partner of choice Capable operator Access to capital

11. Building capability Operating model Partner of choice Capable operator Access to capital 25,000 to 43,000 boe/d Make it Safe Make it Work Make it Grow Mature asset strategy Operations Engineering & Subsea Development engineering

12. Be partner of choice Operate reliable assets Extend field life A good partner providing a service Operating model Partner of choice Capable operator Access to capital Third party business is important to maximise reserves

13. Current and future issues Global debt crisis & access to capital Fiscal stability & field specific allowances Marginal new fields PRT paying critical infrastructure Increasing regulation Around 60 new standards/legislation Increased lead-time Decommissioning – opportunity / threat?

14. Post tax decommissioning security Increasing regulation post Macondo Fiscal stability