1. 2011 Henry Bacon Seminar Statoil’s perspective on the High North/Arctic Hans M. Gjennestad, Senior Strategy Advisor; Development and Production Norway May the 3 rd 2011, Washington DC

2. Stavanger Norway and the High North Our point of departure Snøhvit

3. Norwegian Continental Shelf The first step – 1985 Norwegian Continental Shelf The second step - 1996 Norwegian Continental Shelf The third step - 2000 Norwegian Continental Shelf The fourth step – 2006/7 Norwegian Continental Shelf Status 1979 Key learnings What seems impossible can be done … and create significant value Present status 4 mill boe/d export 3500 BCF/Y gas to Europe Statfjord Statpipe Troll Snøhvit Statfjord 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 Åsgard

4. Norwegian Continental Shelf Opportunities and challenges Opportunities Undeveloped reserves/Yet to find potential Main challenges Maturing portfolio Many, but smaller new developments Ambition towards 2020 Maintain present production level Towards 2030 Need access to large scale acreage Political choices define future Operational efficiency Industrialisation and prioritisation Access to new acreage

5. Gas in Europe Industrial reality towards 2030 “Gas fundamental to Europe's energy security Europe's economy and Battle on climate change.” Former Energy Commissioner Andris Piebalgs Felipe Gonzalez, Chair of reflection Group, Project Europe 2030: Challenges and Opportunities The EU should grow its gas production open new frontiers, remove licensing barriers, allow investments in frontier areas, such as the Arctic. Billion Sm 3 /Year European gas demand Supply – present fields Gap 8,7 TCF/y 18,6 TCF/y

6. Licence awards/exploration drilling since 1980 – 81 exploration wells – 27 active exploration and production companies – 20 years of safe operations Major field developments – Snøhvit Liquefied Natural Gas (Statoil) – Goliat oil field (Eni) Recent oil discovery – Skrugard => A new production region in the Arctic The High North/Arctic Experience and way forward

7. Full subsea field/remote operation Record-distance multiphase flow CO 2 sequestration and storage Path breaking LNG technology Zero surface solutions – from subsea to the beach Snøhvit – technology for the Arctic A benchmark project for offshore and LNG technology

8. Norwegian/Russian agreement Potential implications For the Arctic region – A new step in offshore oil/gas For Europe – A new option for long term supply For Russia – A new “less challenging” upstream region For Statoil – A new “multifaceted” opportunity set

9. The Arctic Long-term perspective in the Arctic Norway moves from the South to the North Russia moves from the South to the North Significant resource potential along these development lines → The High North - a natural meeting area for long term co- operation.

10. Statoil’s Arctic positions The way forward Statoil positions – Barents Sea – Greenland – East/West – Canada – Grand Banks – Alaska – Chukchi Sea Key success factors in the Arctic – Safety and public trust – Solid sub surface knowledge – Stamina – Step wise development

11. Thank you

12. Oslo Washington DC The opportunities Snøhvit

13. The Arctic The Statoil Perspective The High North – Arctic A new energy region A source for long term energy supply. The NCS competence – excellent starting point The Arctic for Norway A unique energy opportunity Further development of the national competence capital A driving force for regional value creation