Our ambitious South East Asia growth strategy

Compelling Case for Oil & Gas Investment in South East Asia, Underpinned by Forecast Energy Demand

Increasing gas demand in South East Asia is widening the gas deficit. This, combined with the significant, underdeveloped resources in the region, make for a compelling investment proposition. Coro plans to leverage their local connections, and the existing, strong infrastructure in South East Asia, to acquire and develop a series of assets in the region.

Source: World Bank, Global Prospects, January 2018

Source: World Bank, Global Prospects, January 2018

Demand outstrips supply in South East Asia

  • Gas demand is expected to overtake production between 2020 and 2030.
  • In Indonesia, natural gas production has been in decline since 2010 and consumption is also expected to grow rapidly.  Indonesia is expected to become a net importer of gas by 2020.

Strong Market Fundamentals Leads to Attractive Gas Prices

Significant undiscovered volumes

  • Opportunity to commercialise existing discoveries.
  •  Ready market for new discoveries.

What are we looking for?

Criteria

  • High-graded countries in Indonesia, Malaysia & Vietnam
  • Preference for gas over oil
  • Exploration-stage assets, where value to be added through technical de-risking and the drill-bit
  • Appraisal-stage assets, low technical risks and smart, low cost development options can be created
  • Production where it facilitates exploration & appraisal and has financial synergies

Brunei

Fiscal Terms Overview

PSC based on production levels. Royalty 12.5, and income tax of 55

Doing Business Ranking*

56

Index of Economic Freedom**

69.8

Cambodia

Fiscal Terms Overview

Relatively new industry, Kris Energy agreed PSC after long negotiation. Corporate tax 30

Doing Business Ranking*

135

Index of Economic Freedom**

59.5

Indonesia

Fiscal Terms Overview

“Gross Split” PSC without cost recovery. Base split to government 52% for gas and 57% for oil, but with some ministerial discretion for negotiation.

Corporate tax 25, plus branch profits tax 10 (40 effective)

Doing Business Ranking*

72

Index of Economic Freedom**

61.9

Malaysia

Fiscal Terms Overview

PSC signed with Petronas – the share of profit oil is based on Revenue / Cost (R/C) ratio. Royalty of 10, and tax of 38

Doing Business Ranking*

24

Index of Economic Freedom**

73.8

Myanmar

Fiscal Terms Overview

PSC with state oil company, progressive sliding scale linked to average daily production. Royalty 12.5, and income tax of 25

Doing Business Ranking*

171

Index of Economic Freedom**

52.5

Thailand

Fiscal Terms Overview

Royalty 5 to 15 based on production levels, Special Remuneration Bonuses or SRBs (0 to 75), income tax 50.

PSC regime operates in the Malaysia-Thailand Joint Development Area

Doing Business Ranking*

26

Index of Economic Freedom**

66.2

Vietnam

Fiscal Terms Overview

PSC based on production volume, income tax 32 to 50, resource tax 7 to 29 for oil, 1-10 for gas. Special incentives to encourage development.

Doing Business Ranking*

68

Index of Economic Freedom**

52.4

Singapore

Fiscal Terms Overview

N/A, included as comparison for ranking and index

Doing Business Ranking*

2

Index of Economic Freedom**

88.6

* The World Bank rank every country worldwide for ease of doing business, this column is each country’s overall rank (higher number, lower rank)

** The Heritage Foundation produce an index of economic freedom based on multiple metrics, included assessments of business, trade and investment freedom, as well as government integrity and judicial effectiveness (higher number, better economic freedom)