Developing a strong gas portfolio in a turbulent market

1. Developing a strong gas portfolio in a turbulent market Bengt Lie Hansen, President Statoil RussiaThe 8th Russian Petroleum & Gas Congress Moscow, 24.06.2010

2. Global offshore champion Strategy & focus areas Worldwide presence 29.000 employees in 41 countries Major facts & figures • Integrated international energy company • World leader in the use of deepwater technology • 67% owned by Norwegian state • Equity production of 1.96 mboe per day (2009) • 35 years of oil& gas production experience • Market capitalization of about USD 80 billion (2009) World’s largest overall offshore organization

3. A leading European gas position Large resource base and yet to find potential Closeness to large markets Extensive infrastructure Competent industrial cluster Stable regulatory framework

4. 9.0 16.5 7.5 Marketing and trading, including adjustments* Adjusted earnings 2009 Processing and transport Strong results in a turbulent gas market Natural Gas adjusted net operating income 2009(NOK bn) Reduced demand and increased supply capacity have reduced prices(bcm) Zeebrugge, spot German import price * Adjustments include; derivatives MtM, write downs and asset retirement obligations

5. Gas becomes more important on the Norwegian Continental Shelf Most gas sold on long term contracts with regular price reviews Trading and optimisation increasingly important for value creation ~ 3.4 bn NOK Gas FlexibilityLNGCO2Electricity Upstream flexibility Record trading result in 2009** Oil production* Volumes in long term gas contracts* Gas production* * Production: Statoil and State’s Direct Financial Interest (SDFI) volumesThe volumes in long term gas contracts prior to 2000 are estimates. ** These numbers show group perspective on value creation and are not accounting figures

6. Gas value chain 15% share of European gas market, second largest seller Supplying gas to UK, Germany, The Netherlands, Belgium, France, Italy and Spain Partner on Shah Deniz gas field with supplies to Azerbaijan, Georgia and Turkey Developing a competitive gas position in the US market Natural gas is more carbon efficient than other fossil fuels

7. Developing our global gas position step by step Shtokman Marcellus North Africa LNG NCS gas machine Caspian The Arctic locomotive 1977 - 2008

8. Troll A, The North Sea gas locomotive Troll A represents 60% of total gas reserves on the Norwegian continental shelf Supplying gas to Europe since 1996. Reserves estimated to last 70 years Gas transferred via 65km pipeline to shore for processing at Kollsnes near Bergen, Norway Processing on land reduces operating costs Powering the production platform from shore reduces emissions of CO2 and nitrogen oxides

9. Ormen Lange, The Norwegian Sea gas locomotive Subsea field development offshore at 1000 m water depth Multiphase flow pipeline to shore Gas processing plant on land World’s largest and longest subsea pipeline to UK Gas to UK market

10. Snøhvit, The Barents Sea gas locomotive The world’s northernmost LNG operation 5.1million tonnes of LNG.Production period: 2007-2035 Sub-sea installations at 300m depth.No platforms or production vessels Gas transferred ashore for processingvia 143km pipeline CO2 from processing re-injected

11. Differences in prices between New York and Henry Hub*($/mmbtu) Marcellus Area New York Cove PointRe-gas terminal Gulf of Mexico Developing the US gas business Strategically positioned in the US Competitive supply positions close to attractive markets in North East Source for increased trading and marketing activities Secures new infrastructure and market expansion into the New York City area Snøhvit LNG * Source: Platts

12. Shtokman Snøhvit NORWAY Shtokman - a catalyst for innovation & modernization • Giant field development • Groundbreaking technology and scale • Will ensure technological, industrial & social development and modernisation • Important progress made on concept, feasibility and technological work • Strong international partnership • Opportunities for the Russian supplier industry

13. Political consensus creates solid basis for energy cooperation in the Arctic Russia and Norway agree the borderline in the High North on April 27th 2010

14. Confidence in natural gas as a competitive long-term source of energy - despite some short-term challenges European and US natural gas demand(bcm) • Gas for power generation driving gas growth in US and Europe • Gas power is effective, flexible and predictable • Near-term capacity decisions will lock-in future fuel mix for power • Statoil well positioned to capture growth based on resources and position CAGR ~ 1.25% CAGR ~ 0.45% Power generation Residential and commercial Industrial Other Upside potential * Statoil’s view on gas demand

15. Concluding remarks Statoil has a strong diversified gas portfolio Statoil has strong ambitions in developing Arctic gas resources Gas will play an important role in the transition to a more carbon-effective future Gas is the fuel of the 21st century Gas companies need to demonstrate the benefits to society of using natural gas in the energy mix