Execute for Improved Value Creation Statoil Business Update

Capital markets update: Balancing returns and growth

High value growth Increase efficiency Prioritise capital distribution

 Organic free cash flow to  Expected annual savings of  Competitive direct returns 1) cover dividends from 2016 USD 1.3 bn from 2016  2013 dividend at NOK 7.00 4)   Capital expenditure reduced Executing projects on cost  Quarterly dividend from 2014 4) by USD 5 bn 2014-2016 2) and schedule • Additional two payments in 2014  Strict prioritisation and  Share buy backs more portfolio optimisation actively used  New project IRR 8% higher • Dependent on proceeds, cash than current developments flow and balance sheet

Balancing returns and growth Maintaining ROACE 1) and increasing production by ~3% organic CAGR 2013-16 3)

1) Brent at USD 100/ bbl (real) 2) Outlook reduced from USD 21.7 billion to around USD 20 billion per year 2 3) Rebased 2013 production is adjusted with 90 000 mboepd for full year impact of transactions with OMV, Wintershall and BP/SOCAR , and redetermination Ormen Lange 4) Proposed 2013 dividend and change from annual to quarterly dividend A decade of transformation and value creation

Scale: Globally Progress since the 2011 strategy reset competitive through the Total Shareholder merger • World class exploration performance Return 1) • A revitalised NCS with longevity

Focus: From integrated • Projects executed on time and cost to technology focused 13.0% upstream 10.1% • Successful portfolio management • A modernised gas portfolio Resources: From resource constrained to • Competitive unconventional assets opportunity rich Statoil Peer average 2)

1) Last 10 years as of 31.1.14 (annualised) 3 2) Peer group:Anadarko, BG Group, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Petrobras, Repsol, Shell and Total 2013 | Robust financial and operational performance

Safety improvement (SIF) 1) Production as expected (mmboe/d) Solid adjusted earnings (NOK bn)

2.5 2.1 250 2.0 2.0 200 1.9 1.5 150 1.8 1.0 1.7 100 0.5 1.6 50 0.0 1.5 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Discovered 3.9 bn boe last 3 years Record RRR 2) at 1.47 (3y average> 1) Competitive ROACE 20% 2000 1.5 15% 1500 1.0 10% 1000 0.5 500 5% 0.0 0 0% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

1) Number of serious incidents per million working hours 4 2) Organic reserve replacement ratio A consistent strategic roadmap

Technology focused upstream company

Development & Midstream & Portfolio Exploration Production marketing management

• Continue to prioritise • Safe and secure operations • Leverage European • Realise value high value exploration gas position • Drive cost and capital efficiency • Sharpen our • Firm strategy • Onshore access to upstream profile • Capitalise on technology and operating premium markets • Deepen core areas experience to • Strengthen • Drill high impact wells • Take out the full NCS value potential • Exploit global trading execution and competence financial resilience • Early access at scale • Strengthen global offshore positions • Maximise value of onshore portfolio • Execute projects on time and cost

5 Strong project performance and trends

All time low SIF Delivering on cost 1) … and on schedule [Projects] [Projects and Drilling & well] [Projects and Drilling & well]

2 110% 105%

107% 101% 1.3 103% 100%

1.0 100% 100% 97% 99%

0.5 0.5 0.3 0 90% 90% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2011 2012 2013

Number of serious incidents per Expected forecast at completion Deviation from planned completion date million working hours (SIF) compared to sanctioned estimate

6 1) Project cost only: 2009: 105%, 2010: 101%, 2011: 98%, 2012: 98% and 2013: 99% Directing our capital to priority projects

Competitive portfolio Strengthening profitability Execution of premium assets • High value barrels IRR1) ($100/bbl; capex-weighted) • Flexible and robust • Proven execution track record 24% Johan Sverdrup

Ownership 40% Optimising capital allocation 16% Start-up 2019 • Value creation potential Resources 1.8-2.9 • Return on capital bn boe • Strategic fit and portfolio composition East Coast Canada Ownership 65% Start-up 2020+ Resources 300-600 Ongoing project developments mmboe Non-sanctioned pre-2020 start-ups

7 1) From time of sanction High value growth High grading the portfolio

Start-ups pre-2020 Optimising/future 1) Divested/reduced 1) • High profitability • Improvement potential • Low strategic fit • Strategic fit • Return on capital • Return on capital • Market attractiveness

Non-sanctioned Non-sanctioned Non-sanctioned • Johan Sverdrup • Snorre 2040 • Rosebank Johan Sverdrup, Norway • IOR projects • Johan Castberg • Shtokman One of the world’s largest Sanctioned • Corner • West Qurna II undeveloped discoveries • CLOV • Bressay Sanctioned • Jack • Peregrino II • Gudrun • Gudrun • Eirin • Gjøa/Vega • St.Malo • Peon • Valemon • Valemon • Lavrans • Shah Deniz • Hebron • Snøhvit II • Schiehallion • Ivar Aasen • Corvus In operation • Aasta Hansteen • Sigrid • Gassled stake • Mariner Future • Statoil Fuel & Retail • Gina Krog • Bay du Nord • Gullfaks Bay du Nord, Canada • Shah Deniz II • Tanzania LNG • Brage The world’s largest oil discovery in • US onshore • Pão de Açúcar • Kvitebjørn 2013 • King Lear • Heimdal

8 1) Since Capital Markets Day 2011. Not exhaustive. Increase efficiency Reducing cost and improving efficiency

Strong starting point with low Launching improvement initiatives with relative Unit Production Cost 1) expected annual savings of USD 1.3 bn from 2016 1.5 Delivering capex improvements Statoil • Reduce modification capex by 20% 0.3 • Potential for 10% lower facility cost 1 from leaner concepts • Reduce rig committments • Potential to cut well construction time USD by 25% bn 1.3

0.5 1.0 Reducing opex & SG&A • Maintain upstream cost level despite production growth • Further reduce downstream cost 0 • Increase organisational efficiency 0 5 10 15 20 Capex Opex / SG&A 2016 total

1) Peer group: Anadarko, BG, BP, Chevron, ConocoPhillips, Eni, ExxonMobil, Petrobras, Repsol Shell, Total, Company reported figures 9 sourced from IHS Herold Financial Database. The benchmark is based on average UPC for the years 2010-2012. Sticking to our successful exploration strategy

Exploit core positions

East Coast Norway Russia Canada Deepen core areas

Gulf of Drill high impact wells Mexico

Early access at scale Angola Tanzania Australia Brazil

New Zealand High Impact Well 2014

10 Barents Sea – pursuing new oil plays

• Plan two-three operated Johan Hoop Castberg wells in Hoop area including Apollo and Atlantis

• Continue drilling in Johan Barents Sea Castberg area: Kramsnø South East and Drivis

• Operator for joint 23rd round 3D seismic acquisition in Barents Sea South East

11 Licences awarded in the Awards in Predefined Areas (APA 2013) are not shown on the map Gulf of Mexico – drilling top tier oil opportunities

• High graded portfolio in High impact prolific oil basin prospect

• Martin, Perseus and Monument highly ranked in our global prospect Partner- operated portfolio development

• Attractive and robust value proposition

12 Tanzania – unlocking the full potential

• 17-20 Tcf in-place - foundation for major gas development

• Additional upside potential in low to medium risk prospects

• Several additional exploration wells 2014-2015

Discovery Prospect Prospect

1313 Brazil – deepening position in emerging oil play

• 6 new licences close to recent oil discoveries in “Park of Espírito Santo sweets”

Indra/ S. Bernardo

• Extensive 3D seismic Golfinho starting 1Q 2014 complex

• 10 exploration wells Whale Park

2016-2018 Salt diapirs

Source: Earthmoves, IHS

1414 Angola – exploring in a proven pre-salt play

• Large acreage position in pre- Dilolo prospect, block 39 salt Kwanza

• Multiple high impact prospects − Dilolo – outboard mega closure

• 8 wells from 2014 − 2 operated by Statoil

0 10 km

1515 East Coast Canada – opening up extensive new oil play

• Bay du Nord – break through oil discovery (300-600 mmbbl)

• Significant running room with several prospects mapped

• Drilling campaign from 3Q 2014

• Assessing feasibility of accelerated development

1616 Driving engine for long-term Profitable Growth

Assets Delivering Growing Profitably

~610,000 net acres HSE focus Marcellus Liquids ramp-up Statoil operatorship Apply technology

Operator in core positions Eagle Ford ~65,000 net acres Concentrated liquids drilling Transition to operator concluded Building value chains

Liquids production growth Bakken ~310,000 net acres Production growth and flexibility Integration success

17 Increased value from US onshore well manufacturing

Drilling time reductions per well from 2012 to 2013: Drilling cost reductions • Total well cost ~ 90% of upstream capex 35 per well from Q1 2012 to – margin leverage BAKKEN Q4 2013: 32 31 29 -25% 27 28 23 • Strong improvements and competitive 22 23 10 results during Q1 2012 to Q4 2013 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

55 EAGLE FORD reduced drilling cost 54 25% to 50% -40% 42 43 40 30% to 50% reduced drilling time 34

Dayswell per 25 26 26 10 • Further total well cost reduction potential 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 ~15% by 2016 35 MARCELLUS 33 -50% 26 19 16 • Upside from new technology 22 19 18 17 17 15 development 10 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Statoil operated Statoil non-operated

18 Robust platform for sustainable performance

Safety & security Strong resource base Sustainability and transparency

Serious incidents per million working hours • 22 bn boe Low carbon footprint 1) 2.5 • 75% OECD exposure 2.0 • Robust NCS base load 1.5 1.0 0.5 Statoil Industry average 0.0 2009 2010 2011 2012 2013 #1 in Transparency International’s ranking 2012 on corporate reporting

19 1) OGP Report for 2012, based on environmental information reported by member companies .Tonnes of CO2 per thousand tonnes of hydrocarbon production Summary

Competing from strengths • Solid strategic progress • Strong resource base with optionality

Increasing our value creation • Delivering growth • Strengthening efficiency and reducing capex estimate • Improving free cash flow

Prioritising distribution • Firm policy • Quarterly dividend • Share buy back

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Investor Relations in Statoil

Investor Relations Europe Hilde Merete Nafstad Senior Vice President [email protected] +47 95 78 39 11 Lars Valdresbråten IR Officer [email protected] +47 40 28 17 89

Erik Gonder IR Officer [email protected] +47 99 56 26 11

Gudmund Hartveit IR Officer [email protected] +47 97 15 95 36

Mirza Koristovic IR Officer [email protected] +47 93 87 05 25

Madeleine Lærdal IR Officer [email protected] +47 90 52 50 53

Kristin Allison IR Assistant [email protected] +47 91 00 78 16

Marius Javier Sandnes IR Assistant [email protected] +47 90 15 50 93

Investor Relations USA & Canada Morten Sven Johannessen Vice President [email protected] +1 203 570 2524

For more information: www.statoil.com

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