Secure deliveriesfrom NorwayKjell Agnar Dragvik, Director NPD

7. Sept 2017

2

Sitat fra Stortingsmelding av 14. juni 1971

3

1. Ensure national governance and control of the entire activity onthe Norwegian Continental Shelf

2. Exploit the petroleum deposits in such a manner that Norway minimizes its dependency of crude oil imports

3. Develop new business activities based on the petroleum sector

4. The development of the oil and gas industry must takenecessary consideration to existing business and to theenvironment

5. Flaring of valuable natural gas is not accepted on theNorwegian Continental Shelf, except for shorter test periods

6. Petroleum from the Norwegian Continental Shelf shall as a main rule be shipped to Norway unless societal impactconsiderations require other alternatives

7. Petroleum from the Norwegian Continental Shelf shall as a main rule be shipped to Norway unless societal impact The Government shall be involved at all appropriate levels, contribute to the coordination of Norwegian interests withinthe Norwegian oil industry, and develop an integratedNorwegian petroleum environment with both national and international goals

8. A State owned oil company shall be established to secure theGovernment’s economic interests, and to have a positive cooperation with national and foreign interests

9. The activity north of 62 degrees shall satisfy the special societalimpact conditions tied to this part of the country

10. Future Norwegian petroleum discoveries may expose theNorwegian foreign policy to new challenges

NCS - status onopening for petroleum activities

4

0

1

2

3

4

5

0

50

100

150

200

250

300

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Mill

ion

bar

rels

o.e

. per

day

Mill

ion

Sm

³ o

.e.

per

yea

r

Gas (40 MJ) NGL Condensate Oil

Production history and five years forecast

5

Recoverable resources – account status 31.12.2016

6

Investments trend reversal in 2019

7

0

20

40

60

80

100

120

140

160

180

200

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bill

ion

20

16

-NO

K

Discoveries

Ongoing field developments

Fields in production (2013-2016)

Fields in production before 2013

The Shelf 2015

Development costs slashed in half

8

0

50

100

150

200

250

Autumn 2014 Autumn 2015 Autumn 2016

Bill

ion

20

16

-NO

K

Most discoveries fall into the category “Probable, not clarified”.

9

10

Undiscovered Resources by area

Exploration activity expected to gradually recover

11

0

10

20

30

40

50

60

70

0

5

10

15

20

25

30

35

40

45

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Nu

mb

er o

f ex

plo

rati

on

wel

ls

Bill

ion

20

16

-NO

K

Exploration costs (companies)

Exploration costs (license and unit)

The Shelf 2015

Number of exploration wells

APA 2017

• Award: 1Q 2018

12

24th Licensing Round – announced blocks

• Application: 30 November 2017

• Award: First half 201813

Assessment of petroleum resources in eastern part of Barents Sea north – additional future resources

• Total: 1370 MSm3 o.e. (350 – 2460)

• Gas: 545 bill Sm3

Expected gas sales from Norway

15

Summary

• Norwegian fields and discoveries will provide a high gas production level for many years ahead

• Substantial additional estimates of yet undiscovered resources to build the longterm production profile beyond 2030

• Still high exploration activity through annual APA rounds in mature areas and biannual frontier rounds

• Development cost reduced by up to half since 2014

• The resource base makes Norway a reliable long term producer of gas to Europe

• We welcome 40 new years of gas to Emden andd Germany!!

16