The way forward on the Norwegian Continental Shelf - into the Arctic oceans Brussels, March 6th 2012 Øivind Dahl-Stamnes, VP North Area Initiative, Statoil

Why Arctic ? – and why now ? Significant HC potential Increased world demand Technology makes it possible Key elements in a sustainable Arctic development −Competence/Technology −Step-by step approach * US Geological Survey estimates 2008 Ice cover Summer 2011 Arctic Alaska/Beaufort ~73 Bboe West Siberia ~133 Bboe East Barents ~60 Bboe Greenland/E. Canada ~52 Bboe A key role in meeting future demand

NCS Nyhamna Europipe II Europipe I Norpipe Emden/ Dornum Teesside ÅTS Norne Åsgard Haltenpipe Heidrun Franpipe Zeebrügge Zeepipe I St Fergus Vesterled Frigg Kårstø Kollsnes Melkøya Snøhvit Ormen Lange Easington Langeled Ekofisk Sleipner Troll Dunkerque Fourth step – Status 1979 Second step First step – 1985Third step Statfjord Gjøa Tampen Link Flags

World’s northernmost LNG facility at 70 deg. North, 5 mill. tons/year No surface facilities offshore, no conflict with fishing interests World’s longest unprocessed multiphase pipeline km Injection/Storage of CO2 equal to emissions from 280,000 vehicles The Snøhvit field, State of the art technology in Arctic conditions

The direction is set Discovery at Johan Sverdrup Discovery at Skrugard / Havis Management plan Barents Sea White paper on oil and gas White paper on the High North Important policy milestones – key industry developments Barents Sea Delineation Agreement Norway/Russia

The NCS north of the Arctic Circle Project development −Goliat, Luva, Snøhvit Future and Skrugard/Havis boe/day in 2020 Increased exploration efforts −22. license round Opening Barents Sea Southeast in 2013 (former disputed zone) A new oil and gas region Norne Arctic circle

The Norwegian Arctic A future source of energy to Europe Source: Norwegian Oil- and Energy Department, per Proximity to markets European Gas Demand/Supply (bcm) Large Norwegian gas resources to meet future demand Norway Russia Algeria Pipeline LNG 2042 billion scm billion scm Reserves Contingent resources in fields Contingent resources in discoveries Undiscovered resources Billion Sm 3 /year Gap ~250 BCM 4% natural decline prod. fields Demand IEA Ref scenario Demand IEA 450 scenario 2042 billion scm billion scm Source: IEA

The Barents Sea 30+ years of Arctic activity Mostly ice free Proximity to markets Stable and predictable framework Ice cover February 2012 A gateway to the Arctic

The way forward on the Norwegian Continental Shelf - into the Arctic oceans Øivind Dahl-Stamnes VP North Area Initiative