2 011 Henry Bacon Seminar Statoil’s perspective on the High North/Arctic

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

2. Norway and the High NorthOur point of departure Snøhvit Stavanger

3. Snøhvit Melkøya Statfjord Snøhvit Troll Norne Heidrun Statpipe Åsgard Åsgard Statfjord Haltenpipe ÅTS Ormen Lange Nyhamna Troll Frigg Kollsnes Vesterled Kårstø Sleipner St Fergus Europipe II Ekofisk Europipe I Langeled Norpipe Zeepipe I Teesside Franpipe Easington Emden/Dornum Zeebrügge Norwegian Continental ShelfThe first step – 1985 Norwegian Continental ShelfThe fourth step – 2006/7 Norwegian Continental ShelfThe second step - 1996 Norwegian Continental ShelfThe third step - 2000 Norwegian Continental ShelfStatus 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 Dunkerque

4. Access to new acreage Industrialisation and prioritisation Operational efficiency Norwegian Continental ShelfOpportunities 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

5. Gas in EuropeIndustrial reality towards 2030 18,6 TCF/y European gas demand Gap 8,7 TCF/y Billion Sm3/Year Supply – present fields Former Energy Commissioner Andris Piebalgs • “Gas fundamental to • Europe's energy security • Europe's economy and • Battle on climate change.” 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.

6. The High North/ArcticExperience and way forward • 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

7. Full subsea field/remote operation Path breaking LNG technology Zero surface solutions – from subsea to the beach CO2 sequestration and storage Record-distance multiphase flow Snøhvit – technology for the ArcticA benchmark project for offshore and LNG technology

8. Norwegian/Russian agreementPotential 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 ArcticLong-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 positionsThe 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. The opportunities Washington DC Snøhvit Oslo

13. The ArcticThe 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