Oil Search : committed to transparency

Oil Search committed to transparency

18 April 2018

Today, Oil Search released its 2017 Transparency Report. The Report consolidates information on the Company's approach to tax transparency, its socio-economic contributions and payments it has made to governments in the countries in which it had a presence during 2017.

While the report format is new, Oil Search's commitment to transparency is not.

Oil Search pays substantial amounts every year in royalties, taxes, dividends, levies and other fees and charges to governments and has long supported increased revenue transparency in the countries in which we operate. As the largest Papua New Guinean company, these payments represent a meaningful proportion of the country's private sector income and are our most significant socio-economic contribution. By publishing what we pay to governments, we provide essential information that empowers policy-makers and citizens.

Payments transparency helps citizens to better hold their governments to account for using the wealth generated by extractive industries to fund economic and sustainable development, which underpins future national and community prosperity.

Earlier this year, we released our first Voluntary Principles Report, which communicates our performance against the Voluntary Principles for Security and Human Rights' (VPSHR) Verification and Reporting Framework. Having only become a Corporate Participant of the Initiative in late 2016, this is an important first step in demonstrating the way we are implementing these important principles.

As one of the first companies to voluntarily release its Climate Change Resilience Report, Oil Search once again demonstrated its commitment to transparency. Released in March, and in line with the 2017 Financial Stability Board's TCFD recommendations, Oil Search's Climate Change Resilience Report demonstrates the Company's long-term resilience and continued economic value generation in a range of decarbonisation scenarios, including a 2°C pathway.

Oil Search provides a range of avenues for stakeholders to access and review our performance. This includes various online and published annual and periodic reports, a customizable online data book, via third parties such as submission of data to PNG Extractive Industries Transparency Initiative (EITI) or CDP, and via our responses to analysts.

On the willingness of Oil Search to be transparent to all stakeholders, Oil Search Managing Director, Peter Botten said, "Oil Search works in an environment with varying cultural norms and ethical standards, including some jurisdictions that are perceived as having high levels of bribery and corruption risk.

"Wherever we operate, we apply a consistent approach to integrity and transparency issues. We do this by requiring employees and business partners to adopt ethical business practices, contributing to public policy debate, advocating for change and promoting greater transparency.

"Whether you are an investor, a community member, or any other stakeholder, we want to ensure that we actively demonstrate that we operate with integrity and that our business is resilient, whether that be in response to climate change, or in response to how we operate our business in countries with complex operating environments."

Our commitment to transparency is underpinned by the principles of our Social Responsibility Policy, our commitment to the United Nations Global Compact (UNGC), our Climate Policy and our support for the

Oil Search Limited

Incorporated in Papua New Guinea ARBN 055 079 868

implementation of the EITI in PNG. We have been an EITI Supporting Company since 2013 and are active participants in PNG's EITI Multi-Stakeholder Group.

Oil Search's suite of reports can be viewed on the links below:

• 2017 Social Responsibility Report

• 2017 Transparency Report

• 2017 Climate Change Resilience Report

• 2017 Voluntary Principles on Security and Human Rights (VPSHR) Report

PETER BOTTEN, CBE

Managing Director

18 April 2018

For further information, please contact

Ms Ann Diamant

General Manager, Investor Relations and Communications

Tel: +61 2 8207 8440

Mob: +61 407 483 128

Footer - 18 April 2018

2