Technological challenges and opportunities in the High North – Statoil’s vision

Torgeir Kydland Senior vice-president, Development and Production International, Europe and Asia

Technology focused upstream company

• Seismic imaging and interpretation

• Reservoir characterization and recovery

• Drilling and well construction

• Subsea production and processing

Revitalise NCS with high value

barrels

Develop a leading global

exploration company

Continue portfolio

management to enhance value

creation

Create value from a superior

gas position

Build material positions in 3-5 new offshore

business clusters

Apply technology to expand in

unconventionals

Production above 2.5 million

boe/d in 2020

Four business critical technologies Business strategy

Technology as a critical driver for building strong international presence

Production Exploration

• Strong legacy production from NCS

- Significant resources and values • World’s largest offshore operator

- Operating more than 3 mill. boed

• Integrated global oil and gas producer

- 50% of resources outside NCS

• World leader in exploration in 2011

- 8 high impact finds in 2011

• Leading European gas producer

- Building strong gas value chain in US

4

Sea of Okhotsk, Russia

Chukchi Sea, Alaska, USA

Beaufort Sea, Canada

Newfoundland, Canada

Barents Sea, Russia

Barents Sea, Norway

Development project Production

Exploration

Baffin Bay, Greenland

Statoil in the Arctic

• A key role in long term global energy supply

• Arena for international cooperation

• Will require development of new technology

• Strong HSE focus is a requirement for the license to operate

Securing a long-term and diverse position in Russia

5

Perseevsky license block JV with Rosneft (33,3%)

Shtokman

Sea of Okhotsk JV with Rosneft (33,3%)

Kharyaga 30% in the Kharyaga PSA

Moscow Statoil Russia head office

Stavropol shale oil JV with Rosneft (33,3%)

North Komsomolskoye, Heavy oil JV with Rosneft (33,3%)

Statoil’s subsea technology development towards the Arctic • Long-distance well stream transport

• Subsea processing

• Subsea gas compression

Ormen Lange 2007 Snøhvit 2007 subsea to shore

Tyrihans 2009 water injection

Åsgard 2013 Ormen Lange 2017 subsea compression

Further Arctic subsea step-out

Tordis 2007 subsea processing

Snøhvit Phase II 250 km step-out

Ormen Lange/Snøhvit subsea developments

Challenges: • Long distance

• Rough seabed

• Sub-zero temperatures

Solutions: • Optimized pipeline seabed routing • Detailed flow models • Extensive hydrate management

Value creation through competence & technology

Viscous oil flow facility to capture value • Screening • Looking ahead • Trouble shooting

Peregrino

Mariner / Bressay

Grane

Unique research facility at Porsgrunn

Offshore heavy oil

Driving growth through technology Prioritising technology for value creation

Classification: Internal 2012-03-23 9

Offshore Heavy Oil Oil Sands

PEREGRINO - BRAZIL LEISMER - CANADA

10

Early mover into unconventionals

Bakken Marcellus

Eagle For

South Georgina

Stavropol

Eagle Ford

Summary

• Statoil has a strong track record of crossing energy frontiers based on

advanced technology developments

• Statoil a natural partner for Russian companies to explore and develop the

Russian offshore arctic

• Statoil is also well positioned to cooperate with Rosneft in the development

of unconventional and challenging onshore oil resources in Russia

• Statoil is actively working to develop a commercial framework and technical

basis for a successful Shtokman development together with Gazprom

Statoil in Russia Torgeir Kydland Senior Vice President DPI EA E-mail tkyd@statoil.com www.statoil.com

Classification: Internal 2012-05-04 12