Secondary market for capacity in

GRI N-W secondary markets 22.01.2010

www.gassco.no Gassco and Gassled

The Norwegian State Joint Venture Petoro Total ConocoPhillips Shell Gassco Board Statoil Dong ExxonMobil Eni

GASSCO

1. Operator 2. System operations GASSLED 3. Capacity Management 4. Infrastructure development ISO Pipelines Riser platforms On-shore facilities Terminals Technical Service Providers ConocoPhillips Total Statoil Centrica

www.gassco.no Booking and Tariff regime

Visund Kvitebjørn Dry Gas Network Gullfaks T : Entry : Exit G FLAGS F Statfjord Veslefrikk Rich Gas Network Troll Kollsnes A Brage : Entry : Exit Næringspark Area E Kollsnes Pipeline Kollsnes Urd Norne Nyhamna Oseberg Heimdal Kårstø B Grane H Heidrun Alve

St. Sleipner Snurrevarden Fergus D Naturkraft Tjeldbergodden Easington Rogass Exit UK Ekofisk DNQ Dornum EMS Zeebrugge NPT • Tariffs are regulated (7 % Rate of return before tax) Exit Western Axis Exit Eastern Axis (- ) () • Entry/exit tariff system for areas: A - H

• Tariffs have capital andwww.gassco.no opex components Elements in Gassled Access Regime

Right to book Allocation of scarce capacity Operational tools Priority to owners Opflex

2 * ownership

Investors right to book capacity Lineflex Capacity Allocation Key

Prorata on need for more capacity, Curtailment adjusted for AtU 22% swing

Secondary market

www.gassco.no 4 Criterias for Qualified Shippers

1) The Petroleum Regulations explicitly states that shippers must have a Duly Substantiated Reasonable Need (DSRN) in order to be allocated available capacity. The concept of DSRN has been further specified by Gassco and shippers, and is encapsulated in the term “qualified need”.

• Qualified need takes into account production rights as specified in the production permits or the estimated forecast production. Where appropriate any carry-forward balance, gas sold, purchased and/or lent at an entry point, alternative capacity rights outside Gassled, and volumes in the process of being developed shall be taken into account.

2) Gassco will request a credit rating of the potential shipper from a credit rating company (recognized as NRSRO). The credit rating will fall into one of three categories:

• If a credit rating of shipper exists and is minimum BBB, the applicant is qualified. • If a credit rating of the parent company exists and is minimum BBB the shipper may qualify, if a parent company guarantees the equivalent to 24 months tariff. • If there is no credit rating of either company or the rating is below BBB – a bank guarantee is required from an A-rated bank equivalent to 24 months of the relevant tariff.

www.gassco.no Capacity Products

Gassco offers the following capacity products:

• LT Long term capacity – Annual strip.

• MT Medium term capacity – Monthly strip.

• ST Short term capacity – Daily and within day.

• MT and ST may also be booked, on a first-come-first-served (FCFS) basis after closure of the booking window & allocations have been completed.

Initial primary capacity products are offered in the biannually bookingrounds :

• Medium Term in the two following Contract Years

• Long Term in Contract Years starting 24 months ahead and up to Contract Year 2028

Gassco also offers primary capacity products on FCFS-basis

• Medium Term capacity in the period up to next bookinground

• Short Term capacity for the next 35 days (the 5.th week open every Friday at 10:00 CET )

www.gassco.no GasViaGassled.com / Gassco Booking System

Gassco Booking System is a online bookingsystem that give shippers:

• overview of own DSRN, AtU and CAK figures at relevant points / areas.

• information about the capacity situation (spare capacity, curtailments, restrictions etc) in the transportation system

• information about own bookings (capacity rights) in different Areas and services in Gassled

• opportunities to book more capacity at different points in the system

• opportunities to sell or buy capacity (marketplace) from other shippers

It is only qualified shippers who can get access to GasViaGassled:

• Company Agreement

• Individual User Agreement

• Acces rights for each user must be specified

• GVG certificate for each individual user.

www.gassco.no Gasviagasled re-booking services

Shipper may not unbook capacity • Eitherre-bookto alternative destination or • Sellon secondarymarket Shipper

Rebooking is dependent on Requires • Capacity being available AtU to new destination • Ability to Use to new destination Re- booking of Payment for rebooking capacity • Pay higher of tariffs to the two destinations involved • Otherwise no transaction fees Original New destination destination

www.gassco.no Gasviagasled Secondary Market

Gassco operates a Secondary market • The Secondary market allows Qualified Shippers to re-sell products from the primary market through Gassco’s trading platform. Transactions can be made bilaterally between shippers (hidden for others actors) or as anonimous offers on the open market place on gasviagasled.com.

• The Open Marketplace functionality on gasviagasled.com allows shippers to buy or sell several ”stand alone offers” or a combination (a package) of different offers in ”one transaction”. The functionality consequently allows shippers to swap capacity at different points

• There is no direct transaction fee on these services, but shippers have the opportunity to add price or give discount on the offers. This additional price will come on top of the paymentobligations for the bookings towards Gassled JV.

www.gassco.no Overview over capacity situation

www.gassco.no Book capacity in primary market

www.gassco.no Enter offer / bilateral

www.gassco.no Marketplace

www.gassco.no Regulations and Agreements

• Regulations (regulates transport regime and tariffs)

• Terms and Conditions for transportation of gas in Gassled (developed by Gassco, approved by Ministry)

• Booking Manual (developed and approved by Gassco)

• Shipper Manual (developed and approved by Gassco)

• Agreement for use of Secondary Market

When signing a booking on the Gassco Booking System you also confirm that the transaction is in alignment with “Terms and Conditions”, “Booking Manual”, “Shipper Manual” and “Agreement for use of Secondary Market”. The relevant agreements is displayed on the website.

www.gassco.no www.gassco.no www.gassco.no www.gassco.no www.gassco.no www.gassco.no www.gassco.no Transaction Statistics

Area D

Area B

www.gassco.no