Background. Source : data from BPH MIGAS year 2010

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Background Source : data from BPH MIGAS year 2010 Indonesia is the largest archipelago in the world; with over 17,000 islands, 240 million people, and the fourth longest coastline at 95,000 km. 85% of its territory is ocean and has a big risk of oil spill pollution from major shipping routes, over 200 ports, and oil terminals.

Oil Production, Import & Export Refined Oil Production Crude Oil Exports Refined Oil Import Crude Oil Import Crude Oil Production Source : MIGAS, SKK MIGAS, EIA (2013) *. In thousands of Barrel / day Indonesia produce, import & export oil up to 3,5 million barrels per day 3

World Heritage Sites Threatened by Oil Spill BUNAKEN NATIONAL PARK RAJA AMPAT NATIONAL PARK KOMODO ISLAND NATIONAL PARK Source : data from BPH MIGAS year 2010 Indonesia have over 100 marine protected areas and 6 world heritage sites, namely Bunaken that have thousands of protected marine species, Raja Ampat that have 75% of the World s coral reel species and the famous Komodo Island inhabited by more than 5,700 giant lizards

Bunaken National Park Bunaken National Park covers approximately 89,000 hectares of coral ecosystem is home to thousands of different species of fish, coral, marine mammals, reptiles, birds and mangrove species and is part of the diverse 2.3 million hectares of North Sulawesi ecosystem 3

Raja Ampat National Park Raja Ampat National Park is the seascape crown jewel consisting of about 1,500 islands and is home to over 450 coral species which is over 75% of the world s Coral Reef species and is one of the most famous diving resorts in the World 3

Komodo Island National Park Komodo Island National Park is populated of around 5,700 giant lizards that are well known as Komodo Dragons, the World s largest living Lizard and exist nowhere else in the World. 3

Sources of Oil Spill Response Equipment FOREIGN NATIONAL JAPAN (PAJ & OSPAR) European Countries DIRECTORATE GENERAL OF SEA AND TRANSPORTATION (DGST) SPECIAL TASK FORCE FOR UPSTREAM Oil & Gas Business (SKK MIGAS) PERTAMINA PRIVATE OIL SPILL RESPONSE ORGANIZATION OIL SPILL COMBAT TEAM (OSCT) INDONESIA Indonesia has resources from DGST, SKKMIGAS, PERTAMINA and national OSRO. International Resources are from Japan and european countries 8 8

Indonesia Tier-1 Response Preparedness Every company must have Oil Spill Contingency Plan (OSCP) Approved by Ministry of Sea Transportation & for oil & gas companies SKKMIGAS and then must have Minimum Tier-1 Oil Spill Response Equipment and Trained Responders 9

SKK MIGAS Tier-2 Coordination Area I AREA I 1. EXXONMOBIL OIL INDONESIA 2. PERTAMINA EP ASET I - RANTAU 3. PERTAMINA EP ASET I - PANGKALAN SUSU 4. JOB PERTAMINA - EMP GEBANG 5. BLUE SKY ENERGY 6. TRIANGLE PASE AREA III AREA IIA 1. PERTAMINA EP ASET II A - LIRIK 2. PETROCHINA III INTERNATIONAL JABUNG 3. CHEVRON PACIFIC INDONESIA 4. EMP MALACCA STRAIT S.A. 5. BOB PT. BUMI SIAK PUSAKO II B PERTAMINA HULU 6. PETROSELAT 7. PERTAMINA EP ASET I - JAMBI 8. MEDCO E&P INDONESIA (LIRIK) AREA IIB 1. JOB PERTAMINA TALISMAN JAMBI MERANG 2. PERTAMINA EP ASET II PRABUMULIH 3. PERTAMINA EP ASET - PENDOPO 4. MEDCO E&P INDONESIA (SSE) 5. MEDCO E&P INDONESIA (RIMAU) 6. CONOCOPHILLIPS GRISSIK 7. PT SELE RAYA MERANGIN II 8. JOB PERTAMINA-TALISMAN (OK) 9. PERTAMINA EP ASET V - BUNYU 1. CONOCOPHILLIPS INDONESIA NATUNA 10. PEARL OIL / MUBADALA PETROLEUM 2. STAR ENERGY 3. PREMIER OIL NATUNA SEA 4. TAC PERTAMINA PANATUNA AREA VII JOB PERTAMINA-MEDCO TOMORI SULAWESI VI AREA IV VII 1. PERTAMINA EP ASET III - JATIBARANG 2. CNOOC SES LTD 3. PERTAMINA HULU ENERGI ONWJ IV 4. PERTAMINA EP ASET III V AREA VI 1. CHEVRON INDONESIA COMPANY 2. PERTAMINA EP ASET V - SANGATTA 3. VICO INDONESIA 4. MEDCO E&P INDONESIA 5. TOTAL E&P INDONESIE 6. PERTAMINA EP ASET V - TANJUNG 7. PERTAMINA EP ASET V - SANGASANGA 8. PERTAMINA EP ASET V - TARAKAN AREA VIIIB 1. PERTAMINA EP ASET - PAPUA 2. PETROCHINA INTERNATIONAL BERMUDA 3. JOB PERTAMINA-PETROCHINA SALAWATI VIII B VIII A AREA V 1. JOB PERTAMINA PETROCHINA EAST JAVA 2. KANGEAN ENERGY INDONESIA 3. PERTAMINA HULU ENERGI WMO 4. SAKA PANGKAH LTD. 5. SANTOS MADURA/SAMPANG PTY LTD. 6. CAMAR RESOURCES CANADA VIII C AREA VIIIC BP BERAU LTD. AREA VIIIA 1. KALREZ PETROLEUM SERAM 2. CITIC SERAM ENERGY SKKMIGAS Oil & gas areas are divided into 8 areas with mutual assistance agreement in each area to release about 25% of Tier-1 resources to assist for Tier-2 Incident

SANTOS INDONESIA Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK V. OFFSHORE TEMPORARY FLOATING OIL STORAGE TANK VI. OIL SPILL DISPERSANT SYSTEM - VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER - IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE - JOB PERTAMINA PETROCHINA EAST JAVA Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER - IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK V. OFFSHORE TEMPORARY FLOATING OIL STORAGE TANK - VI. OIL SPILL DISPERSANT SYSTEM - VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE - NATIONAL OSRO EXXON (GAGAK RIMANG) Tier-2 Resources (25% Release) PERTAMINA HULU ENERGY WEST MADURA OFFSHORE Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK OFFSHORE TEMPORARY FLOATING OIL STORAGE V. TANK VI. OIL SPILL DISPERSANT SYSTEM VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE SAKA ENERGY PANGKAH SANTOS INDONESIA JOB PERTAMINA PETROCHINA EAST JAVA PHE WMO CAMAR RESOURCES CANADA KANGEAN ENERGY INDONESIA Ltd CAMAR RESOURCES CANADA Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER 2 Unit IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK OFFSHORE TEMPORARY FLOATING OIL STORAGE V. TANK VI. OIL SPILL DISPERSANT SYSTEM - VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER - IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE KANGEAN ENERGY INDONESIA Ltd. Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER - IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK - OFFSHORE TEMPORARY FLOATING OIL STORAGE V. TANK - VI. OIL SPILL DISPERSANT SYSTEM - VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER - IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE - SAKA ENERGY PANGKAH Equipment Quantity I. DEDICATED OIL SPILL RESPONSE VESSEL - II. OFFSHORE INFLATABLE OIL BOOM III. OFFSHORE OIL SKIMMER IV. OFFSHORE OIL BOOM & SKIMMER POWERPACK OFFSHORE TEMPORARY FLOATING OIL STORAGE V. TANK VI. OIL SPILL DISPERSANT SYSTEM - VII. NEARSHORE OIL BOOM - VIII. NEARSHORE OIL SKIMMER - IX. TEMPORARY ON-LAND OIL STORAGE TANK - X. ABSORBENT & CHEMICALS - XI. SUPPORTING DEVICE - Since Tier-1 OSRE that can be mobilized for Tier-2 is limited, resources from National Oil Spill Response Organization (OSRO) such as Oil Spill Combat Team (OSCT) Indonesia are required to respond to major oil spills

National OSRO History Oil Spill Combat Team (OSCT) Indonesia was founded and established as the first private oil spill response centre in Indonesia OSCT Indonesia meet requirements of ISO 14001:2004 and OHSAS 18001:2007 The Memorandum of Understanding between Oil Spill Combat Team (OSCT) Indonesia and Oil Spill Response Ltd (OSRL) acknowledges OSCT Indonesia as a capable oil spill response centre and a crucial part of any response to oil spills in Indonesia First Oil Spill Response Centre in the World with over 40 members to announce OSCT is ready for Initial Public Offering (IPO) - 2006 2010 2013 2014 2001 2009 moved to new 10,000 m2 facility, the largest oil response centre in Indonesia and one of the largest in the World OSCT Indonesia launched membership program for Tier-2 Oil Spill Response support in Indonesia with headquarters in West Java and 4 bases in Surabaya, Balikpapan, Natuna area and Sorong 2012 First Oil Spill Response Centre in Asia to have two Giant Octopus skimmer 12

National OSRO Profile OSCT Indonesia is a private Oil Spill Response Organization with experts that have 32 years of experience providing Tier-2 membership in Indonesia. Headquarters located in West Java with 4 bases across Indonesia and operations in Thailand

National OSRO Capability Over 10,000 meters of boom, 40 skimmers including Two Large Offshore Skimmers with 500 tons / hour recovery capacity and special purpose equipment like fire boom and fast current boom and fast current skimmers 14

National OSRO Members Oil Spill Combat Team Indonesia serves over 40 members from the oil & gas industry upstream, downstream and private companies responding to about 6 oil spills per year 15

Oil Spill Combat Experiences Map Legend OIL SPILL COMBAT EXPERIENCES OSCT Indonesia has been combating more than 25 oil spills in Indonesia, China, Qatar and Thailand.

Tier-3 Response Preparedness DGST Marine Disaster Prevention Ships (MDPS) 2 1B 2 1B 1A 1B 1B 1B CLASS 1 A 1 Vessel Pangkapalan PLP Tanjung Uban CLASS 1 B 5 Vessel Bitung, Jakarta, Surabaya, Tual dan Tanjung Uban. CLASS II 9 Vessel Tanjung Priuk (8) Tual (1) DGST operates 15 Marine Disaster Prevention Ships that is equipped with oil spill response equipment systems on each ship to assist with Tier-3 Response if Tier-2 resources have been exhausted

Indonesia Response Resources OIL SPILL RESPONSE EQUIPMENT RESOURCES OFFSHORE BOOM OFFSHORE SKIMMERS ONSHORE BOOM ONSHORE SKIMMERS DISPERSANT Area I 300 m - 450 m 3 - Area II 400 m 1 985 m 25 4400 Liter Area III 450 m 4 600 m 1 7250 Liter Area IV 800 m 6 766 m 9 13600 Liter Area V 750 m 9 N/A 1 8400 Liter Area VI 600m 3 1300 m 6 1200 Liter Area VII 400 m 1 - - 1963 Liter Area VIII 250 m 2 300 m 8 8100 Liter OSCT Surabaya 400 m 5 1500 m 4 1200 Liter OSCT Headquarters 5400 m 20 6000 m 30 10000 Liter OSCT Balikpapan 400 m 5 1500 m 4 1200 Liter OSCT Sorong 400 m 5 1500 m 3 - TOTAL 11,550 m 61 14,901 m 94 57,313 Liter There are about 12 km of offshore boom and 15 km of shoreline boom available in-country for Tier-2/3 Response. OSCT Indonesia resources covers over 75% of the national oil spill response resources to respond to major oil spill incidents. 18

National OSRO Tier-2 Resources in 2015 In 2015, OSCT Indonesia plans to upgrade to up total 20KM of boom, with new bases in Medan & Natuna Area and will have a twin propeller airplane for aerial surveillance and dispersant spraying 19

Emerging Role of National OSRO for Tier-3 Response Emerging role of National OSRO such as OSCT Indonesia is shown by the signing a MoU with OSRL and other Response Centres around Asia such as IESG (Thailand), NASOS (Vietnam) and CPSE (Vietnam) for the spirit of protecting the World s Natural Environment 20

Emerging Role of National OSRO for Tier-3 Response Oil Spill Incident escalates from Tier-2 to International Tier-3 Incidents if national Tier-2/3 resources is exhausted and not sufficient 1 International Assistance Mobilization Procedure Customs clearance permit with bank guarantee may cause 1-2 days delay before equipment arrive in-country. National OSRO Role Custom clearance permit prepared valid for one year, no delay for custom clearance 2 After custom clearance permit issued, equipment is inspected at entry port or airport and may cause further delay Documentations at port or airport prepared, valid for one year. No delay at port or airport 3 4 Equipment mobilized from port or airport to incident location need logistics and local support that may cause delays International response team takes time to integrate with national response team due to different equipment, operating procedures and coordination Logistics and infrastructure support prepared, uses existing national resources Standard operating procedure (SOP) prepared for seamless integration between national & international resources 21

Pre-arranged Customs Clearance Permit 1. Temporary Import Permit Prepared issued by Ministry of Trade valid for one year MOU Dated 10 July 2014 between Oil Spill Response Limited and PT. OSCT Indonesia. 2. Directorate General of Customs notified and documents prepared for equipment to be cleared at port of entry valid for one year Customs clearance permit approved to import used goods (oil spill response equipment) to be used temporarily The Emerging Role of National OSRO like Oil Spill Combat Team Indonesia including pre-arranged customs clearance permit to speed up clearance of international OSRE 22

Standard Operating Procedure OSCT & OSRL Notification of Spill N O T I F I CAT I O N Evaluate Information Proactive Activation, if required Follow company Response procedure Mobilization Level M O B I L I ZAT I O N Notification Only OSCT OSRL Activation Sign Mobilization Form OSRL delivers equipment to designated port as directed by OSCT OSRL personnel fly to designated port as directed by OSCT OSCT facilitate customs clearance for equipment and immigration clearance for Responders OSCT pays customs duties and charge tomember directly or MEMBER pays customs duty directly The Emerging Role of National OSRO like Oil Spill Combat Team Indonesia including pre-arranged Standard Operating Procedure for seamless integration of national & international team in the field 23

Standard Operating Procedure OSCT & OSRL Relationship during response OSRL Report to Member IMT, works closely with OSCT R E S P O N S E OSCT Roles/Responsibilities Arriive at designated port with equipment & responders from indonesia Operate OSCT Equipment, provide expertise Customs / Immigration / Work Permits for OSRL Coordinate SCAT, Command Post for ERT Provide Local Manpower if required Provide Modelling, cross check with OSRL Liaison with SKK MIgas, DGST, Environmental Ministry in Coordination With Member IMT Local Logistics - Vessels, BOEING 737, - Forward Staging, truck, forklifts - Airport Access Member Brief OSCT & OSRL - HSE - Security - Status of Response - Special Instructions? Communications - Daily Reporting - Video Conference > SKK Migas, Member > OSCT, OSRL Respond as directed by IMT OSRL OSCT Roles/ResponsibilitiesResponsibilities Arrive at designated port with equipment & responders from Singapore/UK/Bahrain Provide documentation for all equipment Operate OSRL equipment, provide expertise Make available aircraft, 2D/3D modelling integrated aerial surveillance service Support SCAT, ICS for IMT with OSCT Special Instructions? Mobilizing Company Demob Form Conduct Debrief OSCT & OSRL invoice MEMBER D E M O B I I L I ZAT I O N The Emerging Role of National OSRO like Oil Spill Combat Team Indonesia including pre-arranged Standard Operating Procedure to avoid confusion, overlapping procedures and inconsistent recommendations or advise to members 24

Response Arrangements Summary Each Tier level in Indonesia have sources of oil spill response equipment to mitigate risk of oil spill incident. Tier-1 response is the key to rapid response 25

Major Oil Spill Incident - Japanese Chemical Carrier MT SOUTHERN MERMAID (OIL SPILL SOURCE) 6 1'45.00"S - 105 54'31.32"E INITIAL CONDITION 8 hours Cigading Port Impact time: 1 day Ciwandan Port Impact time: 8 hours C I L E G O N S U N D A S T R A I T N 3 hours 5 hours Spill resources Location Description OIL SPILL INFORMATION Leaking Vessel (MT Southern Mermaid) MT Southern Mermaid hit the jetty of PT Asahimas Chemical (ASC) Ciwandan Date November 17 th, 2013 Oil Properties Spill Volume Marine Fuel Oil (MFO) 20 tones Minimum time before exposure < 1 day 1 2 days Impact Area Sensitive Area Impacted Industrial Port (Cigading & Ciwandan) Industrial Port (Cigading & Ciwandan) There is no existing Oil Spill Response Equipment (OSRE) on site Each Tier level in Indonesia have sources of oil spill response equipment to Oil Spill Combat Team Indonesia responded to an Marine Fuel Spill from a Chemical Carrier mitigate risk of oil spill incident. Tier-1 response is the key to rapid response collision incident at Anyer, near Java Island monitoring the spill with trajectory modelling and satellite. Oil Spill impacted the shoreline in 8 hours. 26

Major Oil Spill Incident - Japanese Chemical Carrier MT SOUTHERN MERMAID (OIL SPILL SOURCE) 6 1'45.00"S - 105 54'31.32"E LEAKING VESSEL IMPACT OF OIL SPILL Oil Spill impacted the shoreline of Cigading and Ciwandan Port within 8 hours. Monitored from command center with satellite, and live updates by mobile command centre Spilled oil hit impacted rocky beach near the port. Flushing technique/pressure washer is required to recover the spilled oil. Command Centre Mobile Command Centre 27

Major Oil Spill Incident - Japanese Chemical Carrier INITIAL DEPLOYMENT STRATEGY *) Cigading & Ciwandan Port Representative Jetty 3 ENTRANCE 5 4 2 1 COMMAND POST 6 GREEN ZONE YELLOW ZONE RED ZONE 1 2 SUPPPORT BOAT SOLID FLOATATION OIL BOOM 4 5 OIL SKIMMER TEMPORARY STORAGE TANK 3 PRESSURE WASHER 6 OIL ABSORBENT 28

Major Oil Spill Incident - Japanese Chemical Carrier OSCT Indonesia arrived on location on the same day after being mobilized by TOKIO MARINE (P&I of Vessel Southern Mermaid) and conducted response activity for 12 days 29

Major Oil Spill Incident Selat Panjang (Tier-2) Fishing Ground along Rawa River Impact Time: 2 hours Mangrove along Rawa River Impact Time : less than 1 hour 3 hours 2 hours 1 hour 4 hours Spill resources INITIAL CONDITION OIL SPILL INFORMATION Well blow out Well Blowout (Oil Spill Source) 202606.035 E 98720.669 N Activity Location Description Drilling well Date May, 2014 Oil Properties Spill Volume Impact Area Sensitive Area Impacted Well location near the estuary which affected by tidal current. Light crude oil 3000 bbls River with mangroves in the riverside Mangroves, Fishing Ground Minimum time before exposure < 1 hour 1 2 hours 2 3 hours 3 4 hours 4 5 hours N River Conditions Intertidal zone Current is variety from 0.5 2 knots There is no existing Oil Spill Response Equipment (OSRE) on site Oil Spill Combat Team Indonesia responding to Oil Spill from well blowout incident at Selat Panjang, 30 Rawa River, Riau Province. Oil Spill would impact sensitive area within less 1 hour. 31

Major Oil Spill Incident Selat Panjang (Tier-2) TIER-2 ASSISTANCE Tier-2 assistance from National OSRO by BOEING 737 Deployment of Tier-2 additional oil spill response equipment from SKKMIGAS Area II assistance Recent Tier-2 Oil Spill in Indonesia, where National OSRO were mobilized by BOEING 737. Area assistance was mobilized by sea-freight but limited to only 25% of available Tier-1 OSRE 31

Major Oil Spill Incident Selat Panjang (Tier-2) WELL BLOW OUT IMPACT OF OIL SPILL Oil spill impact Rawa River and mangrove less than 1 hour Oil spill retained in the sediment surface at low tide and settles into sediments Rawa River Mangrove Oil spill attached to the roots, rods, and leaves of mangrove 32

Major Oil Spill Incident Selat Panjang (Tier-2) DEPLOYMENT STRATEGY Oil spill recovered and storage in temporary storage tank Manual clean-up by personnel Standby vessel for open and close oil boom Installing absorbent boom to hold oil spill in to the river 33 33

Major Oil Spill Incident Selat Panjang (Tier-2) 8 th of May 2014 Oil boom deployment in Rawa River 17 th of May 2014 Deflection oil spill to pond as a collection point in Rawa River 19 th of May 2014 Response oil spill with skimmer 24 th of May 2014 Cleanup oil that sticks to vegetation using pressure hot water 34

International Oil Spill Incident Thailand 27 th of July 2013 Spill due to leak in pipe between a vessel and refinery 28 th of July 2013 Oil spill hits Koh Samet (northwest coast). The navy deployed at least 300 soldiers to help clean up the spill 31 st of July 2013 Oil Spill Combat Team Indonesia assisted an international oil spill incident with OSRL and IESG 2 st of August 2013 Continue cleaning Ao Phrao bay. Oil slick there has significantly decreased. Recent Tier-3 Oil Spill in Thailand, where Oil Spill Combat Team Indonesia assisted an international oil spill incident with OSRL and the Thailand national team and IESG 35

Summary Emerging Role of National OSRO for Tier-1 First Response Emerging Role of National OSRO for Tier-2 In-Country Response Emerging Role of National OSRO for Tier-3 International Response Based on oil spill incidents like the Japanese chemical carrier collision, national OSRO is emerging to assist private companies as first response as some companies does not have complete Tier-1 resources on-site Based on Tier-2 Oil Spill incidents like in Sumatra, Selat Panjang, assistance from Area is limited(25% of Tier-1 OSRE) National OSRO with membership program is required to respond to major Tier-2 oil spills quickly Based on international oil spill incidents like in Thailand, MOU between Tier-2 and Tier-3 Oil Spill Response Centres allow access to more resources National OSRO to pre-arrange customs clearance, logistics and SOP for international assistance 36

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