Iraq

In August 2006, Oil Search acquired a 10% indirect interest in the Bina Bawi Exploration and Production Sharing Agreement (EPSA) located in the Kurdistan region of northern Iraq. Following a renegotiation of terms to bring the contract into alignment with more recently awarded contracts in the Kurdistan Region, this interest is now 6%. The Bina Bawi EPSA lies over the northern extension of the oil and gas prolific Zagros Fold belt and is approximately 90 kilometres north of the super giant Kirkuk oil field and on trend with the Taq Taq oil field to the southeast and the Tawke-1 oil field to the northwest.

The Company consolidated its position in Kurdistan in May 2008 with the acquisition of an 18.75% Working Interest in the Shakal Block. Shakal lies in the south-eastern fairway of the Zagros Fold belt and lies immediately south east and on trend with the Pulkhana Field.

Oil Search regards Kurdistan as one of the few places left in the world where independent oil companies can capture material exploration positions with large reserve potential and on satisfactory commercial terms. The region is lightly explored and contains some of the most prospective geology in the world, with relatively low sub-surface risk.