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Exploration in the Russian and Norwegian Terje Dahl, VP Russian-Caspian unit

Copyright©Statoil January 2014

Arctic important for long term global energy supply

Increasing global energy demand Significant resource potential

Global oil demand Global gas demand ex bio fuels, mbd 1000 bcm

International bunkers Other non-OECD countries Non-OECD Asia OECD Source: IEA (history), Statoil (projections) Source: USGS

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There is no one Arctic, but many Arctic regions

Workable Arctic Stretch Arctic Extreme Arctic

• Oil & gas activities • Requirement for • Requirement for radical possible with today’s incremental innovation innovation and technologies and technology technology development • For example Southern development • For example North East and East • For example North East Coast Canada Barents Sea

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Long History of Exploring the Arctic

Otto Sverdrup Georgy Sedov

Mikhail Lomonosov

Roald Amundsen Arthur Chilingarov

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Strong partnership with Rosneft

• Offshore joint venture in the Russian Barents Sea and Sea of Okhotsk • Partners in offshore exploration license in the Norwegian Barents Sea • Pilot study on heavy-oil onshore asset in West Siberia • Signed shareholders and operating agreement for Domanik shale oil cooperation

Photo: Courtesy of prime minister press office 5

Activities in the Norwegian-Russian Arctic

Norwegian Barents Sea Production, development and exploration

Perseevsky license block JV with Rosneft

Kharyaga Partner in the Kharyaga PSA

Moscow Statoil head office Sea of Okhotsk North Komsomolskoye JV with Rosneft Onshore heavy-oil pilot study with Rosneft

Domanik shale oil JV with Rosneft

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Technology key to new solutions

• Technology key to access resources in complex offshore basins − Early access requires higher technology risk and new methods − Award-winning Source Rock from Seismic technology (AAPG 2011) Perspective view of the Barents Sea from the northwest: • The Johan Castberg high-impact − New play opener in Barents Sea − New technology in known petroleum system − Enabled by 3D seismic technology

Johan Castberg (Skrugard) double flat spots

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The Barents Sea A new horizon in the northern areas

Exploration Perseevsky • Ambitious exploration program & strong exploration results • New plays opened in the Barents Sea

• Strategic cross border cooperation with Hoop Rosneft

Johan Castberg Acreage • Exciting award in the 22nd licensing round • Barents Sea southeast opened for petroleum activity

* Norwegian Polar Institute, 2011 8

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Sea of Okhotsk – The Magadan shelf licenses

• 3 Licenses: 79000 km2 of frontier exploration acreage • Complex geology • Only one deep well

Lisyansky Magadan-1 • ~ 10 000 km 2D good quality seismic acquired in 2013 • Processing and intepretation ongoing Kasherovsky • First well in ~2016

• Good cooperation between Rosneft and Statoil

Collaboration

• Industry working with authorities and regulators across borders Aligning and improving standards

• Industry working together I,e, Rosneft and its partners signed Arctic Environmental Protection Declaration

• Support from academia and experts Industry funding and cooperation

• Industry depended on predictability Arctic projects require stable economic framework and continuous efforts to reduce costs

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Exploration in the Russian-Norwegian Arctic

Terje Dahl, Vice President, Russian-Caspian exploration unit www.statoil.com

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