Presentation of Statoil ASA UK Norway Share fair

Presentation of Statoil ASA UK Norway Share fair 2006 Aberdeen, Scotland, 20 th April 2006

2 Statoil in brief • Statoil is an integrated oil and gas company with activities in 33 countries (exploration and production in 15 of these) • At 31 December 2005 Statoil had 25, 644 employees, and 49 percent work outside Norway • Statoil operates 24 oil and gas fields on the Norwegian continental shelf and accounts for 60 percent of all Norwegian petroleum production. As operator for 23 seabed facilities, Statoil is a leader in sub sea production • International production is growing strongly • We are one of the world’s largest sellers of crude oil and a substantial supplier of natural gas to the European market

3 Statoil – highlights in 2005 • Statoil’s total revenues came to NOK 393 billion • Net income was 30, 7 billion – the best ever in Statoil’s history • Extensive acquisitions of fields and exploration licences in the Gulf of Mexico, with first field development initiated • New vigour on the Norwegian continental shelf – Technical innovation – 12 new developments – 9 discoveries – 16 new licences awarded • Record-high reserve replacement ratio

4 Corporate executive committee Helge Lund President and CEO Terje Overvik Exploration & Production Norway Peter Mellbye International Exploration & Production Eldar Sætre Chief financial officer Rune Bjørnson Natural Gas Nina Udnes Tronstad Health, safety and the environment Jon Arnt Jacobsen Manufacturing & Marketing Jens R Jenssen Human resources Margareth Øvrum Technology & Projects Reidar Gjærum Corporate communication

5 Core areas on the NCS Harstad Halten/Nordland Growth area Tampen Stjørdal Matured area Bergen Troll/Sleipner Gas machine Core areas Stavanger Offices Fields operated by Statoil

6 Core area: Troll/Sleipner • “Main engines” in the Norwegian gas machine • Provide 63 per cent of Statoil’s gas production • Contain 52 per cent of Statoil’s gas reserves The Sleipner A integrated production, drilling and quarters platform is linked by a bridge to the Sleipner T gas treatment installation

7 Core areas: Tampen – Statfjord, Gullfaks, Snorre, Visund, Kvitebjørn Embraces the oldest and largest fields Challenges: • Improve oil recovery • Extend producing life • Coordinate and enhance efficiency A new shift arrives on the Statfjord A platform while another goes home.

8 Core areas: Halten/Nordland – Heidrun, Åsgard, Norne, Kristin New solutions: • Production ships • Floating platforms • Extensive use of subsea installations • New developments in deep water • A new gas province Åsgard A is one of the world’s largest production ships. Its capacity is enough to meet all Norway’s oil needs.

9 Snøhvit • Statoil will become a player in the market for liquefied natural gas (LNG) • An environmental project without harmful discharges • No surface installations on the field • Carbon dioxide storage beneath the seabed The LNG plant on Melkøya, a few kilometres from Hammerfest.

10 Snøhvit Gas transport and terminals Melkøya • Export pipelines to Germany, Belgium, France and the UK Norne Åsgard Kristin • High regularity and great flexibility • Statoil is technical ÅTS Ormen Lange Statfjord Frigg operator for 6, 000 km of pipeline Heidrun Vesterled Sleipner St Fergus Ekofisk Haltenpipe Nyhamna Troll Kollsnes Kårstø Europipe II Europipe I Langeled Teesside Norpipe Zeepipe I Franpipe Emden Easington Zeebrugge Dunkerque

11 Corporate executive committee Helge Lund President and CEO Terje Overvik Exploration & Production Norway Peter Mellbye International Exploration & Production Eldar Sætre Chief financial officer Rune Bjørnson Natural Gas Nina Udnes Tronstad Health, safety and the environment Jon Arnt Jacobsen Manufacturing & Marketing Jens R Jenssen Human resources Margareth Øvrum Technology & Projects Reidar Gjærum Corporate communication

12 Procurement & supplier relations CPO • HR • Rig strategy • HSE • BPP initiative Constructions Drilling & well Steel Key supplier Corporate and Relations Procurement modifications Market analysis support services

13 Procurement in Statoil – We strive to • secure best value for money through optimal utilization of in-house and supplier resources to provide products and services with the right quality delivered on-time • meet HSE standards and objectives in work performed by our suppliers • engage suppliers who share our values and apply guidelines ensuring a reputation of high ethical standard, integrity and social responsibility

14 Procurement in Statoil – How we work (1) • Strategic sourcing – Develop, integrate and implement sourcing strategies, with “One Statoil” in mind, through a category approach to goods and services based on aggregated demand management, the global market situation and robust analysis to minimize execution risk – Base procurement on competitive bidding, taking into account the principles of transparency, non-discrimination and equal treatment of bidders – Address country specific requirements affecting procurement together with cultural and ethical issues

15 Procurement in Statoil – How we work (2) • Segregation of duties, Compliance and Control – Line management is responsible for demand planning, allocation of technical and operational competence, for budgets and approval of recommended suppliers – Procurement entities are responsible for pro-active demand coordination, planning and execution of procurement on behalf of line management to commit Statoil towards the supplier in accordance with delegation from the CPO – Support cost effective procurement through simple and standardized tools, systems and work processes securing quality, efficiency, spend transparency and appropriate automation

16 Statoil Group Procurement 1996 -2005 Yearly spend (NOK Bn) Committed Value * Invoiced Value 2003 does not include commitments without Purchase Orders Invoiced Value

17 Statoil Group Procurement 2005 Spend per Product/Service Area Total Procurement: 62, 8 NOK Bn

18 Norway: • Shift in portfolio to increased focus on Modification/tie-in and revamp • Still large Projects in the funnel Graf

Concept Engineering (DG 2) SOL Projects 19 Sanction Field Location Project Type Mongstad PQP Fase 2 Dec 2006 Mongstad Mod. SFC WI to Vigdis / Snorre Jun 2006 Statfjord, Vigdis Mod. , Pipeline Alve Oct 2006 Alve, Norne Mod. , Subsea GJØA w/ Camilla Belinda Nov 2006 Gjøa, Gullfaks Semi, Subsea, Well Snorre / Vigdis IOR Dec 2006 Vigdis Mod. , Module Dagny Dec 2006 Troll, Sleipner Mod. , Subsea, Well Alpha Sør Dec 2006 Troll, Sleipner Subsea, Tie-in, Well Snorre B IOR Topside Dec 2006 Vigdis Mod. , Module Kårstø Modifications Apr 2007 Kårstø Refinery Mod. Etan Dornum Aug 2007 Dornum Etan/CO 2 Plant Gudrun Jan 2008 Gudrun, Sigrun, Sleipner Stand Alone Troll Future Development May 2008 Troll, Sleipner Heidrun Gas Injection Jul 2008 Heidrun Mod. , Module Valemon Oct 2008 Valemon, Kvitebjørn Mod. , Subsea, Well Mod. Troll A, Kolsnes Extension, New Pipeline

20 Gjøa Field Development Langeled ÅTS Camilla&Belinda Gjøa Tampen Kvitebjørn Valemon Gjøa recoverable reserves: • Gas 39 GSm 3 • Oil/condensate 10 MSm 3 Gjøa licence partners: Huldra • Statoil (Development operator): 20 % Hild Oseberg Troll • Gaz de France Norway (Operations operator): 30 % • Petoro: 30 % • Shell: 12 % • RWE Dea: 8%

21 Gjøa and CBB Field Development Concept GJØA SEMI WELLS RICH GAS/STAB. OIL EXPORT Gas Oil Umbilical Gas 10” Oil 10” Lift gas 6” 7 km 22 – 28”” 130 km PIPELINE GJØA NORTH Umbilical Gas 12” Oil 12” Lift gas 6” GJØA SOUTH 4 km 16” OD, 60 km PIPELINE Umbilical Gas 14” 50 km CAMILLA BELINDA FRAM B EL. POWER FROM MONGSTAD, 100 km GAS OIL

22 Gjøa subsea layout D Gas 10” ID for E and D 12” ID for B CRA steel 3. 4 km Oil 10” ID for E 12” ID for B SEMI CRA steel A 7. 2 km E Gas Lift 6” carbon steel Umbilical se xp o rt 4. 4 km Ga C&B B C Power cable Oil export UTM coordinates: SEMI Template B & C Sat D 1 slot Template E 6804200/548000 6801300/551300 6806200/552700 6803900/555200

23 Infrastructures in the Troll area

24 West 25 Concepts Heimdal Troll B A UK F ed terl es V St. Fergus Miller A ep e 2 ip Ze • Troll B to Vesterled sub-sea – Gassled Area D reinforcement by ZP IIA – Miller S CAT Sleipner • Troll B to HRP and split between FUKA and Vesterled – Teesside Gassled Area D reinforcement by ZP IIA – CATS • Troll B direct to Miller • Troll B direct to St Fergus

25 East 30 & 40 Concepts St. Fergus Kollsnes Miller 9. Kollsnes direct to Miller 10. Kollsnes direct to St Fergus 11. Kollsnes direct to Zeebrugge 12. Kollsnes direct to Den Helder Zeebrugge Den Helder

26 Troll Future Development Pipeline alternatives from Kollsnes • Direct to Zeebrugge (1050 km) Ø 42” pipeline with a capacity of 57 MSm³/d • Direct to Den Helder (870 km) Ø 42” pipeline with a capacity of 60 MSm³/d • Direct to St. Fergus (500 km) Ø Ø • Via Ø 40 MSm³/d (32”) 65 MSm³/d (38”) Miller to St. Fergus (285 km) Depending available spare capacity 28” – 34” Ø Ø Third line Troll A to Kollsnes (65 km) Ø 36” (landfall section pre-installed)

Kårstø Developments 2006 -2015

28 Kårstø, key processing unit oil and gas production from Norwegian Continental Shelf Draugen Heidrun Mikkel Norne Åsgard Kristin Skarv 2010 Brage, Gullfaks, Jotun, Balder, Snorre, Statfjord Sygna, Tordis, Veslefrikk, Vigdis, Visund New Tampen vol? Sleipner Vest Sleipner Øst Gungne Sigyn Åsgard rich gas Statpipe Sales gas Draupner Statpipe Rich gas Sleipner Condensate Dornum Europipe II Sales gas

29 Kårstø Master plan Modernise the Kårstø plant to: • Improve technical integrity New business opportunities: • New fields/volumes • Increased capacity utilisation Previous Kårstø developments Statpipe 85, Sleipner 93/96, Åsgard 00, Mikkel 03, KEP 05

30 Status and Way forward • Kårstø has a significant project portfolio ahead: – High activity within maintenance and modifications – Significant project portfolio – Total investments in the next 10 years may be 9 – 10 GNOK • Maintenance and modification portfolio to be executed within Operation • Project portfolio to be executed in two phases – Phase 1, Completion by 2010/2011 (5 GNOK) – Phase 2, Completion by 2013 -2015

31 New solutions - new waters New technology has opened for northern activity History Future Arctic E&P Environmental technology Ultra Deepwater Snøhvit LNG Troll 1995 Åsgard 1999 Statpipe 1985 Statfjord 1979 18

32 Significant opportunities in frontier areas • Barents Sea – Four wells, where two are Statoil- operated: Uranus and Guovca – No commercial discoveries in Obelix and Guovca • Norwegian Sea; deep water – Three Statoil-operated wells – Small gas discovery in Tulipan wildcat • North Sea – Kogge wildcat in southern North Sea • Significant yet-to-find potential – 28 Gboe undiscovered on the NCS Uranus Obelix Guovca Goliath Total* 4, 2 4, 0 16, 8 Edvarda Midnattsol Tulipan 9, 8 4, 9 11, 5 2, 8 2, 6 Oil * Undiscovered resources (Bn bbl. o. e. ) Source: Statoil Kogge Gas

33 Long term visions for the Barents Sea Industrial options we are working towards Emden Short term (2012) • Snøhvit I & II • Pechora olje • NEGP • Shtokman I • Area F & G Medium term (2020) • Barents West piped gas • Shtokman II Long term (2020+) • Shtokman III • Pipeline gas to Europe Kårstø Kollsnes Nyhamna Åsgard Murmansk Kirkenes Tromsø Melkøya Snøhvit I&II Area G Area F Barents West Shtokman Zeebrugge

34 Summary • Still a significant number of possible new projects, but – cost level is increasing significantly (CAPEX/bbl) – lack of capacity • High focus on continued development of the Norwegian shelf – Increased oil and gas recovery – Smaller field development and satellites – More complicated/challenging reservoirs • A number of projects require modification on existing infrastructure

35 Thank you! pjt@statoil. com