Confidential

Investor UpdateFY - 2017

April 2018

1

Cautionary statement

This presentation has been prepared by PT Saka Energi Indonesia (“PGN Saka” of the “Company”) and is only for informational purposes and does not constitute a recommendation regarding the

securities or debt of PGN Saka or any of its subsidiaries, or an investment in the Company. The information in this presentation is confidential and none of the information appearing in this presentation

may be distributed to the press or other media or reproduced or redistributed in whole or in part in any form at any time without the prior written consent from the Company. This document remains the

property of PGN Saka and on request must be returned and any copies destroyed.

Neither PGN Saka nor any of its respective affiliates, shareholders, directors, employees, agents, advisors or representatives makes any representation or warranty, either expressed or implied, in relation

to the accuracy, completeness or reliability of the information contained in this presentation, nor is this presentation intended to be a complete statement or summary of the state and condition of the

Company. The information set out herein may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially. The information in this

presentation should not be regarded by recipients as a substitute for the exercise of their own judgement.

This presentation is not intended as, and does not form part of, any offer to sell or subscription of or solicitation or invitation to buy or subscribe for any securities. Neither this presentation nor anything

contained herein shall form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

This presentation contains forward-looking statements relating to PGN Saka operations that are based on management’s current expectations, estimates and projections about the petroleum. Words or

phrases such as “expects,” “forecast,” “projects,” “estimates,” “may,” “could,” “outlook,” “on schedule,” “on track,” and similar expressions are intended to identify such forward-looking statements. These

statements are not guarantees of future performance and are subject to certain risks uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict.

Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-

looking statements, which speak only as of the date of this presentation. Unless legally required, PGN Saka undertakes no obligation to update publicly any forward-looking statements, whether as a

result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil and natural gas prices; changing refining, marketing

and chemicals margins; the company’s ability to realize anticipated cost savings and expenditure reductions; actions of competitors or regulators; timing of exploration expenses; timing of crude oil lifting's;

the competitiveness of alternate-energy sources or product substitutes; technological developments; the business, results of operations and financial condition of the company’s suppliers, vendors,

partners, and equity affiliates, particularly during extended periods of low prices for crude oil and natural gas; the inability or failure of the company’s joint-venture partners to fund their share of operations

and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas development projects; potential delays in the development,

construction or start-up of planned projects; changing economic, regulatory and political environments in the various countries in which the company operates; the potential liability for remedial actions or

assessments under existing or future environmental regulations and litigation; significant business, operational, investment or product changes required by existing or future environmental statutes and

regulations, the company’s future acquisition or disposition of assets and gains and losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-

specific taxes, changes in fiscal terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting rules under generally

accepted accounting principles promulgated by rule-setting bodies. Other unpredictable or unknown factors not discussed in this presentation could also have material adverse effects on forward-looking

statements. No assurance can be given that further events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Actual results may differ materially from those

projected.

Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinions expressed by other businesses areas or groups of the Company as a result of

using different assumptions and criterion or otherwise.

2

Table of contents

Section 1 Company overview 3

Section 2 Operational and Financial highlights 8

Appendix A Non-GAAP financial measures 13

Appendix B Regulation and Upstream fiscal regime 15

Corporate Overview

Section 1

4

Introduction to PGN SakaPGN Saka is the upstream arm of PT Perusahaan Gas Negara (Persero) Tbk (“PGN”). PGN Saka works in close

cooperation with its parent to acquire, explore and develop natural gas resources and complements PGN’s role as

the sole gas midstream player in IndonesiaCorporate milestones

2014 2015 2016 2017

Net 2P reserves1,2 Revenue and Adjusted EBITDA2 CapitalizationAverage daily net production1

Acquired remaining stake in Pangkah

Acquired South Sesulu and SES

Acquired 36% in Fasken Texas and

20% in Muriah

Note:

1. Net of working interest, management estimates

2. Conversion rate of 5,800 cf to boe

3. Adjusted EBITDA is not a standard measure or measure of financial performance under IFAS or U.S.

GAAP. Please see the Appendix for EBITDA reconciliation

4. Amended syndication Facility, US$ 225 million available

Muara Bakau starts production

2 POD’s in Pangkah for West Pangkah

and Sidayu

Acquired Wokam

Bangkanai first production

Acquired 37.8% in Sanga Sanga

Ketapang first production (gas)

Acquired 11. 7% in ENI operated

world class Muara Bakau

Muriah first production

Ketapang first production (oil)

US$897 million shareholder loan

drawdown

US$448 million equity conversion

US$81 million capital contribution

US$390 million shareholder loan

US$138 million bridge loan from

shareholder

US$600 million syndicated bank loan

US$150 million revolving credit

facility

Obtained credit rating of Ba1 / BB+ / BB+

(Moody's / S&P / Fitch)

US$625 million bond issuance

US$ 250 million syndication bank loan4

(% to total capital)

70.4

92.7 88.3 99.9

28.2

25.3 23.8

31.5 98.6

118.0 112.1

131.4

0.0

50.0

100.0

150.0

2014A 2015A 2016A 2017A

Natural Gas Crude Oil

14%26% 28%30%

41%

36%37%

70%

45%38% 35%

0%

20%

40%

60%

80%

100%

2014A 2015A 2016A 2017ABonds & Bank loansShareholders loanEquity

10.9

21.2 26.7

38.1

6.2

9.0

11.2

13.4

17.1

30.2

37.9

51.5

0

15

30

45

60

75

2014A 2015A 2016A 2017A

Natural gas (Bscf) Crude oil (MMbbl)

205.4 154.4

182.9

268.8

297.8

263.7

314.1

473.0

99.0

52.5 43.6

54.8

0.0

25.0

50.0

75.0

100.0

0.0

100.0

200.0

300.0

400.0

500.0

2014A 2015A 2016A 2017A

(US

$/b

arre

l)

(US

$m

)

Revenue

Adjusted EBITDA

Brent crude oil (year average)

5

Shareholding and organizational structurePGN Saka is a 100%-owned subsidiary of PGN, and is ultimately majority owned by the Indonesian government.

100%

0.10%

0.10%

0.10%

0.10%

0.05%

0.05%

0.025%

0.05% 99.95%

99.975%

99.50%

99.50%

99.90%

99.90%

99.90%

99.90%

0.003%

46.03%56.97%

99.997%

PT Saka Energi

Investasi (SEInv)

PT Saka Energi

Sumatra (SES)

PT Saka Ketapang

Perdana (SKP)

PT Saka Indonesia

Sesulu (SIS)

PT Saka Bangkanai

Klemantan (SBK)

PT Saka Energi

Muara Bakau (SEMB)

PT Saka Energi

Internasional (SEInt)

PT Saka Energi

Bangkanai Barat

PT Saka Energi

Wokam (SEW)

PT Saka Energi

Sepinggan (SEPP)

Saka Energi Fasken

LLC (SEFLLC)

Saka Indonesia

Pangkah BV (SIPBV)

Saka Energi Overseas

Holding BV (SEOH)

Saka Indonesia

Pangkah Ltd (SIPL)

Saka Pangkah LLC

(SPLLC)

Saka Energi Explor.

Prod. BV (SEEP)

Saka Energi Muriah

Ltd (SEML)

100%

100%

100%100%

100%

100%

99.90%

99.90%

0.10%

0.10%

Effectively, 100%

Credit ratings (Moody’s / S&P / Fitch):

Republic of Indonesia: Baa3 / BBB- / BBB-

PGN: Baa3 / BBB- / BBB-

PGN Saka: Ba1 / BB+ / BB+

Saka Energi Asia

Pte.Ltd.

Saka Energi East

Kalimantan Pte LtdSaka Energi Sanga

Star Pte.Ltd

Saka Energi East

Kalimantan Pte Ltd

Unimar LLC

100%

100%

100%

100%

Virginia International

Co.LLCVirginia Indonesia

Co.LLC

50%50%Saka Energi Pekawai

(SEP)Saka Eksplorasi

Baru (SEB)

99.90%

Saka Eksplorasi

Timur (SET)

0.10%

99.90%

99.90%

50%

0.10%

0.10%

Effectively, 100%

6

PGN Saka’s assets in Indonesia are clustered around current and future

PGN hubs, securing upstream gas resource for PGN's infrastructure build-up

Balanced mixed portfolio in strategic locations

Note:

FSRU = Floating storage regasification units

1. Future planned FSRU

Production Development/Discovery Exploration

Existing PGN pipeline Planned PGN pipeline

• Location : Webb County, Texas,

United States

• Working Interest : 36%

• Operator & Partner : Swift Energy (64%)

Fasken

• Location : offshore southeast Sumatra

• Working Interest : 8.9%

• Operator : CNOOC (66%)

• Partners : Pertamina (20%)

KUFPEC (5%)

• Location : offshore Java sea

• Working Interest : 20%

• Operator & Partner : Petronas (80%)

Muriah PSC

• Location : offshore Java sea

• Working Interest : 100%

• Operator : PGN Saka

Pangkah PSC

• Location : offshore East Java

• Working Interest : 20%

• Operator & Partner : Petronas (80%)

Ketapang PSC

Wokam II

Tangguh

LNG

Facility 4SES

FSRU

Muara

Bakau

KetapangFSRU

Pontianak

West YamdenaFSRU1

FSRU1

Future Masela

LNG Facility

FSRU1

Sanga Sanga

South Sesulu

Pekawai

Pangkah

Muriah

Palangkaraya

Banjarmasin

Wokam II

• Location : offshore Papua

• Working Interest : 100%

• Operator : PGN Saka

Wokam II PSC

• Location : onshore Kutei basin

• Working Interest : 30%

• Operator & Partner : Salamander Energy

(Bangkanai) Ltd (39%)

Bangkanai PSC

• Location : onshore Kutei basin

• Working Interest : 30%

• Operator & Partner : OPHIR (70%)

West Bangkanai PSC

Southeast Sumatra (SES) PSC

Java Sea Hub

• Location : offshore Kutei basin

• Working Interest : 100%

• Operator : PGN Saka

South Sesulu PSC

• Location : offshore Kutei basin

• Working Interest : 11.7%

• Operator : ENI (55%)

• Partners : Engie (33.334%)

Muara Bakau PSC

Strategy: “Expanding Energy Infrastructure”

1) Java Sea Hub : Java – South Eastern Indonesia

2) Kutei Hub : Kalimantan – Eastern Indonesia

3) Western Indonesia Hub : Sumatra – Java

4) Papua Hub : Papua

3b

3a

1

2

4

Kutei Hub

Timika

Merauke

Tangguh LNG

Facility

• Location : offshore Kutei basin

• Working Interest : 37.8%

• Joint operators : PGN Saka,

ENI (37.8%)

• Partners : CPC (20%), Universe

Gas & Oil (4.4%)

Sanga Sanga PSC

International

Arun

LNG Facility

Bontang LNG Facility

Donggi-Senoro

LNG Facility

Tarakan

Tj. Selor

Samarinda

7

Balanced portfolio of upstream assetsA

sset

matu

rity

FaskenEagle Ford, Texas

Southeast

Sumatra PSC3

Offshore South East Sumatra

Expiring September 2018

Pangkah PSCOffshore East Java

Muriah PSCOffshore East Java

Ketapang PSCOffshore East Java

Muara Bakau

PSCOffshore East Kalimantan

South Sesulu

PSCOffshore East Kalimantan

Operator

Bangkanai

PSCOnshore Kalimantan

Sanga Sanga PSC3

Onshore Kalimantan

Expiring August 7, 2018

Exploration Development Production

Assets Classified by Total Assets1

Wokam II PSCOffshore West Papua

West Bangkanai

PSCOnshore Central Kalimantan

PGN Saka has a diversified portfolio of asset across development cycles and production cycles, partnering with

world class operators

Notes:

1. Based on audited financial statement 2017

2. Pangkah PSC has additional upside for near term production and reserve growth potential through development and exploration

3. Sanga Sanga PSC and SES PSC due to expire in Q3 2018

0.2%

0.04%

4.4%

30.5%

5.3%

8.8%

34.2%

2.0%

13.6%

0.7%

0.3%

4.6% of Total Assets comprisedfrom Exploration assets, withone gas discovery in SouthSesulu

95.4% of Total Assets comprisedfrom Production assets, 2 PSC’sare expiring in 2018

RecentlyProducing

Operational & Financial Highlights

Section 2

9

Gas70%

Oil30%

FY-2016

Operational Highlights – ProductionDaily Production (boepd)

Production Composition (%)

Production Volume (mmboe)

Highlights

Production increased by 36% (Gas grew 43%; Oil 20%)

FY 2017 gas production rate 221 mmcfd; oil 13,390 bopd

Muara Bakau started production in June 2017:

– Earlier than target (September 2017)

– Annualized avg production 178mmcfd (Net PGN Saka: 21mmcfd)

– Current daily production rate ~650-680mmcfd (Net: ~76-79mmcfd)

784

2,721

3,234

5,652

-

1,011

428

1,690

2,383

11,495

9,521

5,715

1,820

9,075

9,167

123

-

-

-

-

3,321

3,464

2,814

2,840

-

-

3,635

497

3,496

4,372

908

…

2,721

3,234

5,652

-

4,332

3,892

4,504

5,224

11,495

9,521

9,350

2,317

12,571

13,539

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

Ba

ngka

na

iM

uri

ah

M.

Ba

kau

Ke

tap

ang

SE

SF

aske

nS

an

ga

Pa

ngka

h

Gas Oil

38,144

26,670

13,390

11,198

51,534

37,868

FY-2017

FY-2016

To

tal

0.29

0.99

1.18

2.06

-

0.37

0.16

0.62

0.87

4.20

3.48

2.09

0.67

3.31

3.36

0.05

-

1.21

1.27

1.03

1.04

1.33

0.18

1.28

1.60

0.33

0.04

0.99

1.18

2.06

-

1.58

1.42

1.64

1.91

4.20

3.48

3.41

0.85

4.59

4.96

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

Ba

ngka

na

iM

uri

ah

M.

Ba

kau

Ke

tap

ang

SE

SF

aske

nS

an

ga

Pa

ngka

h

13.92

9.76

4.89

4.09

18.81

13.85

FY-2017

FY-2016

To

tal

Gas74%

Oil26%

FY-2017

10

LPG Lifting (MT)

LNG Lifting (bbtu)Crude Oil Lifting (mmbbl)

Operational Highlights - LiftingGas Lifting (mmscf) Total Lifting (mmboe)

Lifting Contribution (%)Total Lifting Contribution (%)

0.6

-

1.1

1.1

0.6

0.7

1.0

1.4

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

San

ga-

San

ga

Ke

tap

ang

SES

Pan

gkah

4,172

308

1,591

130

19,468

16,842

5,066

6,140

2,349

429

1,379

1,169

16,654

15,415

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

FY-2017

FY-2016

San

ga-

San

ga

Ban

gkan

aiFa

sken

Mu

riah

Ke

tap

ang

SES

Pan

gkah

5,730

-

5,999

3,066

FY-2017

FY-2016

FY-2017

FY-2016

Mu

ara

Bak

auSa

nga

-San

ga

2,763

716

52,040

49,803

FY-2017

FY-2016

FY-2017

FY-2016

San

ga-S

anga

Pan

gkah

11.2

14.7

FY-2016 FY-2017

44%

31%

21%

18%

35%

32%

18%

FY-2016 FY-2017

Pangkah SES Ketapang Sanga-Sanga

38%33%

3%3%

1%5%

15%10%

42%

38%

0%

3%1% 8%

FY-2016 FY-2017

Pangkah SES Ketapang

Muriah Fasken Bangkanai

Sanga-Sanga Muara Bakau

100%51%

0%49%

FY-2016 FY-2017

Sanga-Sanga Muara Bakau

99%95%

1%5%

FY-2016 FY-2017

Pangkah Sanga-Sanga

28%22%

62%

60%

5%

4%

14%

FY-2016 FY-2017

Crude Oil Gas LPG LNG

11

FY-2017 Financial HighlightsRevenue EBITDA Opex1/bbl

Capital StructureTotal Net Debt to Equity Debt to EBITDA

Note:

1) Production and Lifting Cost, excluding Muara Bakau extraordinary costs

2) Net Debt defined as the aggregate outstanding principal of interest bearing financial indebtedness of the group by excluding the

shareholder loans, any cash in hand and any monies standing to the credit of any bank accounts of such member of the group.

(US$mn) (US$mn) (US$/bbl)

37%

28%

35%

SHL Bond + CL Equity

314

473

FY-2016 FY-2017

0.37

0.49

FY-2016 FY-2017

2.71

2.40

FY-2016 FY-2017

in million USD

Consolidated

Comprehensive Income

Statement

FY-2016 FY-2017

(Audited) (Audited)

Revenues 314 473

Cost of Revenues (303) (444)

Gross Profit 11 29

Operating Expense (11) (11)

Finance Cost (43) (71)

Operating Profit (42) (52)

Total Other Income

(Expense) 11 5

Profit (Loss) before Tax

Benefit (Expense) (32) (47)

Total Tax Benefit

(Expense) 8 (47)

Profit (Loss) for this Year (23) (94)

Consolidated Balance

SheetFY-2016 FY-2017

(Audited) (Audited)

Current Assets 543 627

Non-Current Assets 2,127 2,004

Total Assets 2,670 2,631

Current Liabilities 335 200

Non-Current Liabilities 1,443 1,632

Total Equity 892 798

Total Liabilities and

Equity 2,670 2,631

8.9 8.9

FY-2016 FY-2017

2

183

269

FY-2016 FY-2017

12

FY-2017 Revenue PerformanceRevenue Breakdown and Contribution per Asset

Revenue Breakdown and Contribution per Commodity

Realized Price

Commodity FY-2016 FY-2017 ∆%

Crude Oil ($/bbl) 42.7 50.4 18%

Gas ($/mmbtu) 3.8 3.9 3%

LPG ($/MT) 344.4 456.7 33%

LNG ($/mmbtu) 2.6 7.1 175%

22

56

44

31

30

52

53

10

2

8

1

46

30

26

29

13

2

8

8

87

84

1

0

24

17

52

32

8

0 20 40 60 80 100 120 140 160 180

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

Muara

Bakau

San

ga-

San

ga

Ban

gka

nai

Fasken

Muria

hK

eta

pang

SE

SP

an

gka

hCrude Oil Gas LPG LNG

40%

60%

FY-2016

32%

68%

FY-2017

160 ; 51%

168 ; 35%

46 , 15%

69 , 15%

65 , 14%

30 , 10%46 , 10%

38 ; 12%

39 ; 8%

29 , 9%

26 , 6%

52 %8 %

314 473

FY-2016 FY-2017

Pangkah Ketapang Sanga-Sanga Fasken SES Muriah Muara Bakau Bangkanai

Long Term Contract Market Price

132 165

157

33

42 8

76

199

17

25

8

84

314

473

FY-2016 Crude Oil Gas LPG LNG FY-2017

Crude Oil Gas LPG LNG

EBITDA reconciliation

Appendix A

14

EBITDA reconciliation

EBITDA and Adjusted EBITDA are widely used financial indicators of a company’s ability to service and incur debt, but are not standard measures under IFAS or U.S.

GAAP. Accordingly, EBITDA and Adjusted EBITDA should not be considered in isolation or construed as alternatives to cash flows, revenue, or any other measures of

financial performance or as indicators of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities. We

have included EBITDA because we believe it is an indicative measure of our operating performance and is used by investors and analysts to evaluate companies in

our industry. We have also included Adjusted EBITDA because we believe it is a more indicative measure of our baseline performance as it excludes certain charges

that our management considers to be outside of our core operating results. EBITDA and Adjusted EBITDA presented herein may not be comparable to similarly titled

measures presented by other companies and components of our EBITDA and Adjusted EBITDA may not be comparable to similarly named components presented by

other companies whose financial statements were prepared under generally accepted accounting principles other than IFAS. Investors should not compare our

EBITDA and Adjusted EBITDA or components of our EBITDA and Adjusted EBTIDA to EBITDA or Adjusted EBITDA or components of EBITDA or Adjusted EBITDA

presented by other companies.

EBITDA reconciliation Audited Audited Audited

2015A 2016A 2017A

Profit/(Loss) for the year ................................................ (113.2) (23.4) (93.7)

Plus:

Finance cost ............................................................. 30.5 42.8 70.7

Depreciation, depletion, and amortization ..................... 150.4 182.1 259.4

Depreciation on general and administrative expenses .... 0.0 0.0 0.0

Income tax benefit / (expense) .................................... (76.4) (8.3) 46.5

Minus:

Finance income, net of tax ......................................... (3.7) (7.4) (7.2)

EBITDA ....................................................................... (12.4) 185.9 275.7

Plus:

Impairment losses on oil and gas properties ................. 119.6 15.3 (7.0)

Impairment losses on goodwill .................................... 47.2 - -

Gain from acquisitions ............................................... - (18.3) -

Adjusted EBITDA ........................................................ 154.4 182.9 268.7

Regulation and upstream fiscal regime

Appendix B

16

Regulation and upstream fiscal regime

The fiscal system in Indonesia is governed by the Production Sharing Contract (PSC) regime.

Royalty, in the form of First Tranche Petroleum (“FTP”) is paid on production and the standard

rate of corporate income tax is applied to profits. There have been different vintages of PSC

models, the difference being in the rate or method of calculation in items such as bonuses, cost

recovery ceiling, FTP, profit sharing split, depreciation, investment credit and income taxes.

It should be noted that in some contracts additional incentives have been negotiated. In addition,

PSCs awarded in licensing rounds post-2003A have incorporated contract-specific levels of FTP,

investment credit and profit oil / gas splits.

Fiscal regime

Cost recovery

Gross revenue

FTP1

Government

Profit share

Contractor

profit share

Government

profit share

Domestic Market

Obligation (“DMO”)2

Tax3

DMO reimbursement

Contractor

Source: Wood Mackenzie April 2017 Indonesia market report

Notes:

1. FTP may be divided between the contractor and the government, based on the contract.

2. The contractor is required to supply a percentage of oil production to the domestic market, multiplied by its pre-

tax profit oil/gas entitlement percentage, capped at the amount of its combined share of FTP and profit share.

The contractor receives a discounted price for those volumes.

3. A withholding tax rate of 20% is applied on the balance after income tax has been charged.

Gross PSC

In January 2017A the Ministry of Energy and Mineral Resources (“MEMR”) introduced the Gross

PSC terms through decree 8/2017. The Gross PSC removes the cost recovery mechanism, and

the government and contractors split gross revenues. Upstream operations will continue to be

supervised and managed by SKKMIGAS, but the new terms promise the operators a greater

degree of freedom in managing the budget, costs and asset operations. The new terms will be

applied to future license awards and contract extensions. Contractors may also choose to adopt

the new terms for existing PSCs.

The government's base share of revenues will be 57% for oil production and 52% for gas

production. The contractors share of revenues can be increased, depending on field complexity.

For example, a deepwater or an unconventional field will see the contractor's share of gross

revenues increase by 16%. The prevailing rules of taxation is understood to apply. DMO oil will

receive full market price.

A number of aspects of the gross split PSC terms will have to be clarified by further regulatory

changes, particularly on procurement without cost recovery and taxation. The fiscal term's

standing in relation to the pending revision of the Oil and Gas Law is also uncertain.

Standard PSC

(2015 licensing round) Gross PSC

FTP FTP based on gross production,

shared between government and

contractor based on profit share

percentage

No FTP applicable

Cost recovery Capital and operating costs

recovered from production after

FTP

No cost recovery

Production sharing Remaining production after cost

recovery is shared based on flat

percentage

Gross production shared between

government and contractor based

on gross production share

percentage

Oil DMO price DMO is set at 25% of market price DMO is set at market price

Income tax 25% income tax plus 20%

withholding tax (40% effective tax

rate)

Not specified

PT Saka Energi Indonesia

The Energy 11th – 12th Floor

Jl. Jenderal Sudirman Kav 52-53, SCBD

Jakarta 12190

Phone: +62(21) 29951000

Fax : +62(21) 29951001

Email: corporate.finance@sakaenergi.com