At Fonterra, we are focused on developing and operating a portfolio of upstream oil and gas assets. We are well experienced and
have a proven track record of commercializing and operating upstream oil and gas assets, globally. Our strategy is also driven by
our unique delivery model of forming complementary partnerships that strengthen our execution capability.

To be able to fulfill our strategy, our key priorities are:

1. Portfolio Management

We aim to rapidly mature exploration portfolio and fulfill work program commitments with both new and existing partners. Fonterra is
in a strong position to unlock the prospective resources of its assets and mitigate risks. We focus on the following areas:

• Exploit strategic opportunities and under-developed assets alone or with partners with strong capabilities and focus.
• Utilize and grow regional and intra-continental relationships
• Full optimization of strong technical team
• Utilizing industry relationships, strategic partnerships and local structure to our advantage
• Active management of our portfolio to reinvest in growth
• Prioritization of value over production.

2. Growth

Our effective E& P team is always on ground to identify exploration ideas, prioritize our prospect inventory, ensure efficient
deployment of capital and execute our exploration and drilling activities. At Fonterra, we place great emphasis on achieving
exploration and appraisal success, as integral factor of value creation for our shareholders. The objective Production and Reserves
growth include:

• Add other producing assets
• Pursue other opportunities in known basins
• Execute other studies and add high-impact, promising exploration plays
• Exploration in proven areas, which are low risk and quick to monetize
• Higher-risk frontier areas with play-opening possibilities and potential large rewards

3. Operations

We run a full cycle E&P business. Our wealth of experience spans across production, development, appraisal and exploration. Our
areas of expertise include:

• Monitoring the value creation phase of commercial deal delivery
• Maturation of exploration and appraisal opportunities (from field development)
• Project execution and realizing production on to the value monetization phase
• Integrated operations and maintenance
• Hydrocarbon localization

4. Finance

With the philosophy of cost and cash flow optimization, we place strict emphasis on capital discipline. We have effective operational
and financial management processes which place emphasis on delivery, safety and efficient allocation of capital. Our financial
objectives include:

• Maximize our strong relationships in the financial industry
• Strong growth in E&P volumes
• An increase in high margin production
• An increase in return on capital employed
• To return cash to shareholders in the medium term

5. Business Model

Fonterra business model is designed to minimize risk and maximize asset value for the company and its investors. It centers on a
strong management team that can leverage substantial technical expertise to implement a proven development strategy:

• Early entry into emerging and highly potential unconventional resource plays
• Operate in basins with mature infrastructure and in areas weighted towards oil and gas offering better economic returns
• Generate projects internally and maintain low-cost operations
• Grow production and reserves through drilling of underdeveloped properties as well as through strategic acquisitions of
  producing properties
• Develop prudent industry partnerships with competent and knowledgeable companies
• Augment our capabilities with those of leading industry contractors and consultants