Øystein Michelsen Executive Vice President, Statoil - Brief presentation of Statoil - Energy realities and climate change challenge and Statoil’s response - Our ambition to keep maintain export of - CO2 efficient energy until 2020 - The need for action today from the industry, supplier industry and regulators to sustain production

1. Statoil’s industrial response
to the energy and climate
challenges
Øystein Michelsen
Executive Vice President, Statoil

2. Statoil in brief
• Energy company present in 40 countries with 30,000 employees
• Producing 1.95 million barrel of oil equivalent (boe) pr day
• About 22 billion boe in proven resources (5.6 billion as booked reserves)
• One of the world’s largest net sellers of crude oil
• The world's largest operator in waters deeper than 100 metres
• World leader in carbon capture and storage
• The second largest exporter of gas to Europe
• Largest retailer of oil products in Scandinavia
• Over 16 billion € in yearly group procurement

3. Striking the right balance
Energy Climate Global Economic
realities challenge leadership development
Statoil’s industrial response
Low carbon Carbon capture New energy Energy supply
production and storage
120
80
40
0
2001 2005 2009 2013

4. CO2 efficient and attractive energy
Climate gas emissions - kg CO2 Break even gas prices in
equivalent per barrel of oil equivalent power generation (no CO2 cost)
$15/MMbtu
$11/MMbtu
Global average: $10/MMbtu
Norway Europe Middle Russia Africa Gas Coal Nuclear Wind
East
Investment Operation Fuel
Source: IEA

5. Norway - an important supplier of energy
Norway in the oil market Norway in the gas market
Net export (mb/d) Reserves (bn bbl) Net export (bcm/year) Reserves (tcm)
Source: BP Statistical Review of World Energy 2007.

6. Statoil’s ambition: maintain the production level
Stilised production profile Access to new acreage needed to
sustain production beyond 2020
Early phase projects
Fields under development
Fields in production
Map source: Norwegian Petroleum Directorate.

8. Barents Sea
Large remaining potential
Norwegian Sea
North Sea
Undiscovered Produced
Remaining reserves Contingent resources in field and discoveries
Source: Fact sheet, Ministry of Petroleum and Energy

9. alternatives

10. From pioneering to industrialsation

11. The European Gas perspective
Main supply routes to Europe • Europe – in a fortunate position on gas
• IEA report on natural decline rates (Nov
2009)
Pipeline – 50% reduction in global capacity by
LNG
2030
Norway
• Implication for Europe
Russia – need 250 BCM/y of new capacity by
2030
• Long term security of gas will require
– Timely investment in new capacity
– Access to new exploration acreage
Algeria
• Long lead times
– Action needed now for 2020-25
supply

12. 12
Statoil Group Procurement 2009
Top 10 Countries
Spend based on suppliers’ invoice address
Total Spend 2009: BNOK 129,8 Total Spend 2008: BNOK 121,4

13. The economy is picking up speed, but…
Economic growth forecast Oil price 2001-2015
by key country/region Brent blend, USD/bbl
Source: IHS Global Insight Source: Statoil

14. Gas: Bridging troubled waters
Short-term gas prices
UK NBP, GB pence per British thermal unit
Weak market fundamentals
Competitive energy source
Fuel for the future
Source: Statoil

15. • Snøhvit
Statoil on the Norwegian Continental Shelf Hammerfest
Exploration and production Norway
Harstad
Operations
Offhore installations 34
North • Norne
Mobile rigs 18 • Heidrun
Sandnessjøen
• Åsgard
Vessels 50
• Kristin Brønnøysund
Operations
Helicoptres 22 West • Njord
Chartered planes 2 • Statfjord Stjørdal
• Oseberg
Helicopter bases 6 Kristiansund
• Gullfaks
Supply bases 7 • Snorre Florø
Operations • Troll Bergen/Mongstad
North Sea • Kvitebjørn
• Visund Stavanger
• Grane
Our strategy: • Sleipner
• Volve
Safe and efficient operations • Draupner
Maximise the potential • Marginal fields

16. NCS - Great achievements in short time
• Consolidated two large organisations
• Production delivery confidence
• Positive HSE trend, with some setbacks
• 300 kboe/d in new production capacity
• 70 kboe/day to be put onstream 2010
• 4 PDOs
• Successful exploration
– 60 discoveries, 70 % success rate
• IOR reserve growth: 431 mill boe

17. NCS - Great achievements in short time
• Consolidated two large organisations
• Production delivery confidence
• Positive HSE trend, with some setbacks
• 300 kboe/d in new production capacity
• 70 kboe/day to be put onstream 2010
• 4 PDOs
• Successful exploration
– 60 discoveries, 70 % success rate
• IOR reserve growth: 431 mill boe

18. An industry that makes a difference
A significant role in the Norwegian economy
Macroeconomic key figures 2008 In 2009, total NCS investment
Oil and gas share in… amount to 40 opera houses
Total export:
Government revenue: 51 per cent
36 per cent
Real investment spending
Gross domestic product 24 per cent
25 per cent
Source: Statistics Norway, Ministry of Finance

19. Major contributor to society
From oil and gas to wealth and welfare
Government Petroleum Fund - Global Per capita GDP
Total capital, NOK bn USD index, 2006 (USA = 100)
Source: Norges Bank, OECD.

20. Norwegian Continental Shelf
Snøhvit
Norwegian Continental Shelf Melkøya
The first1979 –- 1985
Status step 2000
fourth step –- 2006/7
second step 1996
third step
Snøhvit
Troll
Statfjord
Statpipe
Norne
Key learnings Åsgard Heidrun
ÅTS Haltenpipe
• What seems impossible can be doneOrmen Lange
Åsgard
Statfjord Nyhamna
• … and create significant value Troll
Frigg Kollsnes
Vesterled
Sleipner Kårstø
St Fergus
Ekofisk Europipe II
Europipe I
Langeled
Zeepipe I Norpipe
Teesside
Franpipe
Easington
Emden
Zeebrugge
Dunkirk

21. Arctic resources and Statoil’s offshore positions
• Chuckhi Sea (US Alaska)
• Barents Sea (Norway / Russia)
• East Greenland
• Newfoundland (Canada)

22. The Barents Sea
• Vast area
– 1.4 Million square kilometres
• Licence awards and consecutive
exploration drilling since 1980
– 81 exploration wells
– 27 active exploration and
production companies
• Major field developments
– Snøhvit Liquefied Natural Gas
(StatoilHydro)
– Goliat oil field (Eni)