“Asia Pacific & Australia Oil & Gas: Negotiating the Future” - AIPN

Association of International Petroleum Negotiators2006 AIPN International ConferencePerth, Western Australia15-18 October, 2006“Asia Pacific & Australia Oil & Gas: Negotiating the Future”Sunday 15 October, 2006PROGRAMMESheraton Perth Hotel12:00pm-5:00pm5:15pmEarly Registration at Sheraton Hotel, PerthBuses leave Sheraton Hotel to Fremantle – boarding at 5:05pmFremantle Maritime Museum6:00pm – 8:00pm Welcome Reception – Sponsored by Chevron Australia Pty LtdDress code suggested: Cocktail AttireWelcome to Perth, Australia by Stuart Barrymore, Conference Co-Chair and introduction to Chevron representativeYou will have the opportunity to listen to traditional didgeridoo music, enjoy traditional Aboriginal dancers and trydidgeridoo playing for yourself.After the Welcome Reception, buses will be available to return to the Sheraton or to a local “informal dining” restaurantat Fremantle’s Fishing Boat Harbour; transportation will be provided after dinner to the Sheraton.Monday 16 October, 2006Sheraton Perth Hotel08:00am – 09:00amRegistration at Sheraton Perth HotelGrand River Ballroom, Sheraton Perth Hotel09:00am – 09:30am Welcome Address, Grand River Ballroom, Sheraton Perth HotelTraditional Indigenous Welcome and acknowledgement of the Noongar Boojar Land by Daniel Garlett and Elder BenTaylor. Official opening by the 2006 AIPN President, Rick Goenner, and the Conference Co-Chairs, Hans Hirschmanner,Michael Arruda and Stuart Barrymore.09:30am – 10:45am Strategic Energy Issues – Regional versus Global TrendsSession Chair: Christopher P. Moyes, Moyes & Co., Inc., (USA)Presentations with the theme of energy security to highlight the global, as well the regional, key issues in achieving energysecurity in different worlds under different scenarios. These are designed to provide some key insights to stimulate furtherdiscussion on matters such as energy solutions, (geo)political issues or technology fixes.Speakers:• Wim Thomas, Head Energy Team, Global Business Environment, Shell International Ltd. (Netherlands)• Graham Kellas, Vice-President – Petroleum Economics, Wood McKenzie Ltd. (UK)Foyer 3, Sheraton Perth Hotel10:45am – 11:15amCoffee Break – Sponsored by FreehillsOctober 11, 2006Grand River Ballroom, Sheraton Perth Hotel11:15am-12:30pm State Policy & State Players: challenges and opportunitiesSession Chair: Andris Blankenburgs, ENI Australia (Australia)Each country faces the challenges of higher prices, limited refining and production capacity and increasing technical risksand escalating costs of finding new reserves as energy costs take a greater portions of its GDP. Countries endowed withhydrocarbon resources have opportunities influence the development of those natural resources by policy making.

The differing political, economic and social fabric of each society is reflected in strategies and policies and the incentivesto encourage that development in a manner that reflects the long terms risks and rewards. This session will provideinteresting perspectives and comments by leaders of their country’s perspective of:• Structure of petroleum industry - strategy and policy• Aspects of that strategy or policy that are being reviewed or developed• Comments from their national and global perspectives.Speakers:• Bill Tinapple, Director Petroleum and Royalties, WA Department of Industry and Resources (Australia)• He Fu, Legal Director, PetroChina Foreign Cooperation Administration Department (China)• Indonesian representative invitedGolden Ballroom North, Sheraton Perth Hotel12:30pm – 02:00pm Lunch – Sponsored by WoodsideSpeaker: Agu Kantsler, Director, Woodside Energy Ltd (Australia)“Woodside’s International Strategy”Grand River Ballroom, Sheraton Perth Hotel2:00pm – 3:30pm Renewal and Rejuvenation of Oil PlaysSession Chair: Stuart Barrymore, Partner, Freehills (Australia)The last few years have seen many examples of small explorers and producers enjoying considerable success in regionsthat were once the domain of the major oil companies and independents and the State owned oil companies. Whilst theskills, risk taking, initiative and nimbleness of the smaller entities have been well recognized as being of an advantage,these companies face many of their own challenges in an industry that is increasingly standardized and regulated.Many countries have recognized the need to create an investment environment that is attractive to this sector. Thissession seeks to examine key factors that smaller explorers and producers look for in their evaluation of opportunities andthose which countries ought to have regard in order to attract investment from this increasingly important section of theindustry.By drawing on experience as appropriate, the session should focus on policy and acquisition criteria from a smallercompany perspective including:• New exploration plays, basins and opportunities, why some countries/areas are preferred over others.• Terms and conditions of concessions that are of significance;• Enhanced recovery terms;• Issues faced by smaller companies in dealing with incumbent organizations.• Changes in circumstances;• Importance of operatorship;• Impacts on finance and equity rising.Speakers:• James Menzies, Managing Director, Salamander Energy (UK)• Peter Botten, Managing Director, Oil Search Limited (PNG)• Dougal Ferguson, Finance Director and Company Secretary, Salinas Energy (Australia)Foyer 3, Sheraton Perth Hotel3:30pm – 4:00pmCoffee Break – Sponsored by Apache Energy LtdGrand River Ballroom, Sheraton Perth Hotel4:00pm – 5:15pm Case Studies: Major Regional DevelopmentsSession Chair: Angela Aroozoo, Senior Legal Adviser, ExxonMobil Australia Pty Ltd (Australia)The challenge to meet energy demands continues with strong growth in Asia Pacific and Australia. Oil and gas projectsremain a key focus of the resources sector with a significant number of transnational projects underway and a continuingpush to get others into development. The challenges and complexities of such projects are many.• Bayu Undan, Darwin LNG Project - David Bowden, ConocoPhillips Australia• Gorgon LNG Project – Harris Leck, Chevron Australia• Indonesian Opportunities: Exploration Perspective – John Harkins, Vice-President, Anadarko InternationalEnergy CompanyOctober 11, 2006 2

Royal Freshwater Bay Yacht Club6:30pm – 11:00pm Riverside Dinner – Sponsored by ExxonMobilDress code suggested: Smart Casual(Buses leave the hotel at 6:15pm - boarding at 6:05pm - and depart Yacht Club at 10:30pm and 11:00pm.)Don’t miss out on your complimentary Native Australian wildlife photograph during pre-dinner drinks.Buffet Dinner and presentation of Student writing competition awards.Tuesday 17 October, 2006Grand River Ballroom, Sheraton Perth Hotel9:00am – 10:30am National Oil Companies: Gatekeepers and InvestorsSession Chair: Michael Arruda, Partner, Fulbright & Jaworski LLP (Hong Kong)China and India are scouring the earth for oil and gas supplies to fuel energy-hungry growth development back home,while at the same time exploiting their own in-country resources. Once a net exporter, China is now a net importer withlittle chance of turning back as its GDP continues to grow at near-double digit rates. India’s position as a net importerwill also continue to worsen without major finds. Indonesia, until last year a net exporter, is today a net importer, and hasannounced plans to curtail exports in order to meet domestic demand. Through the transformation of Pertamina into acommercial entity, Indonesia is now positioned to look abroad for sources of energy to meet its current energy demand.At the same time, each of these countries is looking to increase its own domestic exploration and development program,through enhanced local exploration as well as providing increased opportunities for foreign investors to partner with theirnational oil companies. From India to Indonesia, areas once passed over or otherwise unexplored are being reconsideredfor exploration and areas once off-limits to foreign investment are being opened to joint development.This session will explore the nature of these countries circumstances and their plans to increase energy suppliesy availableto them. It will focus on the sometimes competing roles of NOCs as shepherds of local energy resources andentrepreneurs in acquiring international supplies.Panel:• Venkatesh Prasad, Partner, J. Sagar Associates (India)• Aji Prayudi, Senior Lawyer, Pertamina (Indonesia)• Albert Chandler, Partner, Chandler and Thong-Ek Law Offices Ltd (Thailand)• Michael Arruda, Partner, Fulbright & Jaworski LLP (China)Foyer 3, Sheraton Perth Hotel10:30am – 11:00amCoffee Break – Sponsored by Mallesons Stephen JaquesGrand River Ballroom, Sheraton Perth Hotel11:00am – 12:30pm Stability, Security and FinancingSession Chair: Andrew G. Thompson, Partner, Resources & Energy, MinterEllison (Australia)An oil & gas investor has only to read the industry news clips detailing the recent government actions in Yemen, Boliviaor Venezuela, to see that investing in international oil & gas projects can be risky. This session will focus on various toolsan investor can use to better position itself when the stability of the project is threatened by government action orinaction. These tools include the use of contract stability clauses, international arbitration clauses, nationality selection,and the availability of bilateral investment treaties. The implications of financing as a means of mitigating risks and theinvolvement of agencies will also be examined.Speakers:• Constantine Partasides, Partner, Freshfields Bruckhaus Deringer (France)• Frederic Rich, Partner, Sullivan & Cromwell (USA)Golden Ballroom North, Sheraton Perth Hotel12:30pm – 2:00pmLunch – Sponsored by Shell Development (Australia) Pty LtdOctober 11, 2006 3

Grand River Ballroom, Sheraton Perth Hotel2:00pm – 3:30pm LNG for all: the Development of a World MarketSession Chair: Peter Glass, Vice-President – Marketing, Greater Gorgon Development, Chevron Corporation (Australia)The LNG market has gone through unprecedented change in the last 10 years. In the mid 90s, LNG was sold in threedistinct regions – North Asia, Europe and the USA. Asia was by far the largest and projects were usually located withinor close to the region they served. Critical events that have changed the LNG market since then have been:- the 1998 Asian financial crisis- the tightening of gas supplies in the US and Europe leading to higher gas prices in those markets- the increased global reach of new LNG projectsThe dampening of demand in Asia post the 1998 financial crisis allowed Chinese, Korean, Indian and Taiwanese buyers toprocure LNG on extremely favorable terms via competitive tender. The low prices achieved in these tenders resulted in aslowing of project development in the Asia region and encouraged Middle Eastern suppliers in particular to look Westrather than East for their growth markets. Coincidentally in the early 2000s prices in the US and Europe rose in responseto a tightening of pipeline gas supply. As netback prices from distant markets began to approach those from closer ones,LNG projects which had previously supplied only one region found it economic to supply two or even three regions.This is now allowing suppliers to arbitrage cargos in the short term and target a larger range of customers for long termcontracts. For buyers it means that they can no longer assume that they are competing for LNG only within their regionhowever it also give them access to a greater range of possible suppliers. This globalization of the LNG market isexpected to continue.Speakers:• Peter Cleary, President, North West Shelf Australia LNG (Australia)• Stuart Traver, Senior Manager – Downstream, Gaffney, Cline & Associates (Singapore)Foyer 3, Sheraton Perth Hotel3:30pm – 4:00pmCoffee Break – Sponsored by Fulbright & Jaworski L.L.P.Grand River Ballroom, Sheraton Perth Hotel4:00pm – 5:15pm Cross Border Development, Boundary Disputes and UnitizationSession Chair: Andrew B. Derman, Partner and International Energy Group Leader, Thomson & Knight LLP (USA)Cross border developments bring with them additional considerations and challenges. When faced with these, thesolutions can range from government to government agreements, regulatory policy and legislation to commercialagreements such as unitization agreements. There is also often the spectre of a boundary dispute in the mix. Thissession considers the challenges and solutions involved in cross border developments and boundary disputes, and includean introduction to the AIPN Model Form International Unitization Agreement.The presentation will address, among other issues: what is and is not covered by the Model Form, government approvalissues, how are equities to be determined and redetermined, how are royalties, taxes and other burdens to be satisfied,how are liabilities allocated, confidentiality and disclosure of data, the interplay with existing tract JOAs, work programand budgets, use of existing and non-unit facilities.Speakers:• Andrew B. Derman, Partner and International Energy Group Leader, Thomson & Knight LLP (USA)• Prof. Terence Daintith, Centre for Mining, Energy and Natural Resources Law, University of Western AustraliaFraser’s Restaurant6:30pm – 11:00pm Gala Dinner at Fraser’s Restaurant – Sponsored by ConocoPhillipsDress code suggested: Dinner Suit/Cocktail Attire(Buses leave the hotel at 6:15pm – boarding at 6:05pm - and depart Fraser’s at 10:30pm and 11:00pm)Entertainment by WA Youth Symphony OrchestraPresentation of AIPN’s 25 th Anniversary by the 2006 AIPN President, Rick Goenner and charitable contributionannouncementOctober 11, 2006 4

Wednesday 18 October, 2006Grand River Ballroom, Sheraton Perth Hotel08:30am – 09:55am Gas Projects and Lessons Learned: Gas is NOT Oil !Session Chair: Bryant Daniels, Senior Commercial Adviser, Devon Energy Corporation (USA)The development of a natural gas discovery in emerging markets presents many different issues to be considered thanthose of oil, primarily because of their distinct physical properties. This session will discuss the primary differencesbetween developing a discovery of gas versus oil. Some examples of “successful” gas projects will presented along withthe lessons learned from their development. Examples will also be given of “pending” gas projects and the issues thatmust be resolved before their successful implementation.Speakers:• Bryant Daniels, Senior Commercial Adviser, Devon Energy Corporation (USA)• James Barnes, Partner, Barnes & Cascio, L.L.P. (USA)• Philip Weems, Partner, King & Spalding L.L.P. (USA)09:55am – 10:00amPreview of 2007 International Conference DestinationFoyer 3, Sheraton Perth Hotel10:00am – 10:30amCoffee Break – Sponsored by Kufpec Australia Pty LtdGrand River Ballroom, Sheraton Perth Hotel10:30am – 11:00am AIPN Model Contract DevelopmentSpeakers: N.E. (Skip) Maryan, Special Counsel, International, Thomson & Knight, L.L.PAndrew B. Derman, Partner and International Energy Group Leader, Thomson & Knight LLP (USA)One of the major services the AIPN provides to the international petroleum industry is the development of modelcontracts that are neutral, balanced and enforceable. Drafting committees of interested AIPN members have developednumerous model contracts that are clear, concise and incorporate the best practices in the industry, thereby reducing thecycle time to negotiate, draft and finalize agreements. This presentation will provide a history of the model contractprocess, highlight agreements that have recently been completed or are in the process of development, and set forth theplan for future model contracts and revisions.11:00am -11:15amConcluding Remarks – 2006 AIPN President Rick GoennerLunch – On Your OwnAfternoon AIPN Golf Tournament at “Araluen” Country Club(sandwich lunch will be provided)(Bus will leave the hotel at 11:30am and will return by 6:00pm)* * * * * * *We would also like to acknowledge the following additional sponsors for their valuablecontributionsENI Australia – Delegate Satchel SponsorMinterEllison – Delegate Official Gift SponsorTOTAL – Delegate Gift SponsorTap Oil Ltd – CD Proceedings SponsorWoodside Energy Ltd – Conference Binder SponsorOctober 11, 2006 5