ANNUAL REPORT 2013 Ivar Aasen Using expertise from all over the world Page 16 Exploration Johan Sverdrup First self-produced oil Our exploration activity in 2013 Next year, the Storting will de- It took Det norske eight years resulted in exciting discoveries cide on the development of the to become a fully fledged oil in both the Barents Sea and in Johan Sverdrup field, one of the company, engaging in exploration, >> the North Sea. biggest on the Norwegian shelf. development and production. Page 10 Page 22 Page 30 Trondheim Oslo Harstad Headquarters Visiting address: Visiting address: Visiting and postal address: Bryggetorget 1 Havnebygget About Det norske Føniks, Munkegata 26 Aker Brygge Rikard Kaarbøsgate 2, 2nd floor NO-7011 Trondheim, Norway NO-0250 Oslo, Norway NO-9405 Harstad, Norway Postal address: Postal address: Postboks 2070, Vika P.O. Box 854 Tel. +47 90 70 60 00 NO-0125 Oslo, Norway NO-9488 Harstad, Norway Contact E-mail [email protected] Tel. +47 95 44 60 00 Our values Organisation and management model ENQUIRING We are always Table of contents Good stories Annual General Meeting curious and Annual reports can be rather dull, About Det norske Corporate responsibility yet the information published in Nomination aiming for new and Corporate Assembly External Auditor Organisation and values 3 Petroleum activities 41 them is important to any company. Committee better solutions. Det norske wants to make its Research 42 Summary annual report exciting reading. Social responsibility 44 We have good stories to tell both Board of Directors Five years with Det norske 4 shareholders and others. This is Most important events of the year 6 Organisation why we have chosen to publish this annual report in a magazine Quarterly key figures 7 Thriving together 46 format. Remuneration Always moving forward 48 For Det norske, 2013 was a Audit Committee Executive Chairman Committee Board of Directors 50 year of many good stories. We A milestone year 8 Executive management 51 have made exciting discoveries, and the Norwegian Parliament RELIABLE Exploration and licences Words and phrases 52 has approved the development of Treasure hunt 10 the Ivar Aasen field. Furthermore, We always build Petroleum quiz 55 we have confirmed that Johan Corporate Management Licence to drill 14 Sverdrup is an oil field showing trust and reputation enormous potential. Field development Jette is perhaps the smallest through reliability Ivar Aasen 16 field on the Norwegian shelf, but Board of Directors’ Report 58 when production started in May, and consistent be- The giant Sverdrup 22 it was a significant milestone for Board of Directors’ Report Chief Executive haviour. Gina Krog 27 Det norske. Now we are an inte- Officer on Corporate Governance 70 grated exploration, development Production and production company. Our Financial Statements Jette 30 employees are happy and proud with Notes 79 to be working for our company. Business Support Finance Production record 32 They know that we emphasize Board of Directors’ and what is most important; health, Health, safety and the environment Chief Executive Officer’s safety and the environment. You can read more about these Public Relations What matters most 34 statement 126 great stories here. These are the RESPONSIBLE same stories that we have told Finance Auditor’s Report 127 through advertisements, on our We always put safe- Fresh capital 38 website and in our audiovisual productions during the year. The ty first and strive to Ethical guidelines 40 COO storytelling is important for us Johan Sverdrup Ivar Aasen Exploration Field Development create the highest Asset Management Development as a company, as well as for the and Operation understanding of our industry. possible value for Enjoy our story! our owners and for society. Always moving forward to create value on the Norwegian shelf COMMITTED We are always Digital version et norske oljeselskap ASA is engaged in rests in two of the three licences that constitute committed to each Exploration Johan Sverdrup First self-produced oil exploration, development and production the Johan Sverdrup development. Dof the petroleum resources on the Nor- Det norske is headquartered in Trondheim, with other, the company Our exploration activity in 2013 Next year, the Storting will de- It took Det norske eight years to wegian shelf. We have exploration activities in the offices in Oslo and Harstad. Today, we have more The annual report is made by resulted in exciting discoveries in cide on the development of the become a fully fledged oil company, North Sea, the Norwegian Sea and the Barents than 250 employees. Det norske is listed on Oslo and society. Det norske’s Communication and both the Barents Sea and in the Johan Sverdrup field, one of the engaging in exploration, development Sea. We are the operator of the development of Børs under the ticker “DETNOR”. Accounting departments, in co- the Ivar Aasen field in the Utsira High area in the North Sea. biggest on the Norwegian shelf. and production. operation with Vanntett design and North Sea and operator of the production on the For additional information about Det norske, please Headspin. Jette field. In addition, we have ownership inte- visit www.detnor.no. Page 10 Page 22 Page 30 Print: Communicatio Forlag. 2 ANNUAL REPORT 2013 ANNUAL REPORT 2013 3 Summary 2009 Merger with Aker Explo- Five years with Det norske ration. Det norske merges with Aker Exploration and Licences and operatorships strengthens its position as the second largest compa- 2013 2012 2011 2010 2009 100 ny on the Norwegian shelf. No. of licence interests as of 31 December 80 67 65 66 67 80 60 No. of operatorships 33 26 28 30 34 40 20 Production 1 629 115 bbl 544 734 bbl 548 268 bbl 763 494 bbl 673 603 bbl 2010 0 2009 2010 2011 2012 2013 High level of explorati- Average production per day 4 463 bbl 1 488 bbl 1 502 bbl 2 092 bbl 1 845 bbl on activities. Det norske Number of operatorships Number of licences participates in 15 wells, of Reserves (P50) as of 31 December 66 mill. bbl 65 mill. bbl 68 mill. bbl 1 mill. bbl 29 mill. bbl which nine as operator. The company conducts Reserves (P50) and contingent resources * 525 mill.bbl 492 mill. bbl 177 mill. bbl 165 mill. bbl Share performance its first production test on (P50) as of 31 December 120 24 000 000 the Ivar Aasen field – with NOK per share Volume very positive results. 100 20 000 000 Total operating revenues 944 MNOK 332 MNOK 438 MNOK 366 MNOK 265 MNOK 80 16 000 000 Volume Operating profit/loss 60 12 000 000 -1 091 MNOK -1 582 MNOK -849 MNOK -1 292 MNOK -1 168 MNOK before depreciation and amortisation Share price 2011 40 8 000 000 Operating profit/loss -2 227 MNOK -3 843 MNOK -1 078 MNOK -1 591 MNOK -1 435 MNOK Giant discovery. Det 20 4 000 000 norske participates in the Income/loss before taxes -2 545 MNOK -3 949 MNOK -1 311 MNOK -1 736 MNOK -1 389 MNOK Johan Sverdrup discovery. 0 0 The company is one of the Jan. 2009 July 2009 Jan. 2010 July 2010 Jan. 2011 July 2011 Jan. 2012 July 2012 Jan. 2013 July 2013 Jan. 2014 Net income/loss -549 MNOK -957 MNOK -370 MNOK -564 MNOK -513 MNOK most successful companies listed on Oslo Børs with a growth rate of more than 200 percent. Number of employees Exploration costs 1 637 MNOK 1 609 MNOK 1 012 MNOK 1 412 MNOK 1 186 MNOK 250 Total exploration costs 1 659 MNOK 1 656 MNOK 1 810 MNOK 2 449 MNOK 1 804 MNOK (expensed and capitalised) 200 2012 150 Plan for the Ivar Aasen Cash flow before financing activities -1 889 MNOK -2 156 MNOK -266 MNOK -1 105 MNOK -865 MNOK field. Det norske submits 100 Plan for development and operation of the Ivar 50 Aasen field to the Ministry of Book value of equity 3 188 MNOK 3 736 MNOK 3 677 MNOK 3 058 MNOK 3 858 MNOK Petroleum and Energy. This 0 is the company’s first major Market capitalisation 9 385 MNOK 11 608 MNOK 11 257 MNOK 3 000 MNOK 3 756 MNOK 2009 2010 2011 2012 2013 development as operator. Producing fields No. of shares as of 31 December 140 707 363 140 707 363 127 915 786 111 111 111 111 111 111 1 750 000 2013 Nominal value per share as of 31 December 1.00 NOK 1.00 NOK 1.00 NOK 1.00 NOK 1.00 NOK 1 500 000 1 250 000 Fully fledged oil com- Share price as of 31 December 66.7 NOK 82.5 NOK 88.0 NOK 27.0 NOK 33.8 NOK pany. With start-up of pro- 1 000 000 duction on the Jette field, 750 000 Det norske has become a Barrels of o.e. 500 000 fully fledged oil company Number of employees as of 31 December 230 214 173 193 176 with activities in the enti- 250 000 re chain of value creation; 0 exploration, development 2009 2010 2011 2012 2013 and production. Jette Atla Varg Glitne Enoch Jotun * Resource figures for 2013 are not reported due to unitisation negotiations for Johan Sverdrup. 4 ANNUAL REPORT 2013 ANNUAL REPORT 2013 5 SammendragSummary Most important events of the year Most important events of the year Summary of quarterly financial results 3 January Discovery in appraisal well in the Kvitsøy basin, part of the Johan Sverdrup Q1 Q2 Q3 Q4 field in licence 265. Total production (boepd) 1 929 5 613 5 940 4 328 24 February Production from Glitne ends.