GDF SUEZ Annual Report by Fasett AS

Annual Report

GDF SUEZ e&P Norge AS

GDF SUEZ e&P Norge AS Vestre Svanholmen 6, 4313 Sandnes P.O.Box 242, 4066 Stavanger Tel: +47 52 03 10 00 Fax: +47 52 03 10 01

2008

ANNUAL REPORT

GDF SUEZ E&P Norge AS

GDF SUEZ E&P Norge AS will create value along the value chain by exploring for, developing, producing and transporting oil and gas on the Norwegian Continental Shelf. GDF SUEZ E&P Norge AS will do this in a sustainable manner and through operational excellence be respected by our stakeholders.

It is the vision of GDF SUEZ E&P Norge AS to be an upstream company on the Norwegian Continental Shelf, among the top ten players, respected for its operational and HSE performance.

contents

miSSiON AND ViSiON

AcTiViTiES

SUSTAiNABLE DEVELOPmENT

kEy FiGURES 2001-2008

GjøA DEVELOPmENT

cOmmUNiTy RELATiONS

mANAGiNG DiREcTOR’S STATEmENT

GjøA PRE-OPERATiONS

OUR TEAm

GDF SUEZ E&P NORGE AS

SNøhViT AND ThE BARENTS SEA

DiREcTORS’ REPORT

GDF SUEZ ExPLORATiON AND PRODUcTiON

ThE NORwEGiAN SEA

ANNUAL AccOUNTS

GDF SUEZ GROUP

ThE NORTh SEA

AUDiTOR’S REPORT

GDF SUEZ mERGER

Idea and design: F A S E T T Photos: Anne Lise Norheim (portraits, page 6, 32-35), StatoilHydro (page 07). First Light (page 14). Activities: Thanks to StatoilHydro for photos: Gjøa development (page 18), Gjøa pre-operations (page 20, illustration: Øyvind Thorsdalen), Njord (page 24, photo: Atle Kårstad) and Fram (page 26). Sustainable development: Børge Ousland (page 28-29), Øyvind Hagen / StatoilHydro (page 28). Community relations: Kjell Helle-Olsen (page 30-31), Linda Bruvik, Firdaposten (page 30), Anders Minge, Stavanger Aftenblad (page 31). Additional photos: GDF SUEZ. Paper: Galleri Art Silk 150 / 250g Circulation 1,000 Print: Gunnarshaug

It is the vision of GDF SUEZ E&P Norge AS to be an upstream company on the Norwegian Continental Shelf, among the top ten players, respected for its operational and HSE performance.

contents

miSSiON AND ViSiON

AcTiViTiES

SUSTAiNABLE DEVELOPmENT

kEy FiGURES 2001-2008

GjøA DEVELOPmENT

cOmmUNiTy RELATiONS

mANAGiNG DiREcTOR’S STATEmENT

GjøA PRE-OPERATiONS

OUR TEAm

GDF SUEZ E&P NORGE AS

SNøhViT AND ThE BARENTS SEA

DiREcTORS’ REPORT

GDF SUEZ ExPLORATiON AND PRODUcTiON

ThE NORwEGiAN SEA

ANNUAL AccOUNTS

GDF SUEZ GROUP

ThE NORTh SEA

AUDiTOR’S REPORT

GDF SUEZ mERGER

04+05

the year 2008

Key figures turnover MILLIOn NOK

4,193 net result MILLION NOK

1,268 oil and gas production MILLION BOE

10.8 Highlights

last eight years MILLION NOK

investments MILLION NOK

‘01

294

‘02

502

‘03

529

‘04

1,266

‘05

1,487

‘06

1,367

‘07 ‘08

last eight years MILLION NOK

3,864

838

‘01 ‘02

969

‘03

1,327

‘04

1,992

‘05

1,712

‘06

2,310

1,612

‘07

2,844

4,193

‘08

3,864

last eight years MILLION NOK

exploration costs MILLION NOK

‘01

-34

‘02

‘03

‘04

264

‘05

366

‘06

467

‘07 ‘08

last eight years MILLION NOK

528

‘01

‘02

‘03

‘04

‘05

126

‘06

204

508

‘07

335

1,268

‘08

528

last eight years MILLION BOE

equity 31.12 MILLION NOK

‘01

1.2

‘02

2.6

‘03

2.7

‘04

4.8

‘05

4.0

last eight years MILLION NOK

1,879

216

‘01 ‘02

671

‘03

893

‘04

1,472

‘05

2,140

‘06

3.3

‘06

2,607

‘07

4.2

‘07

3,116

‘08

10.8

‘08

1,879

Production reaches all time high The 2008 production numbers more than doubled the 2007 results with a total of 10.8 million boe. This is an all time high for GDF SUEZ E&P Norge. During 2008, new production records were set several times, stabilising at a production level above 40,000 boe per day towards the end of the year.

Gjøa milestones Fabrication of the Gjøa installations progressed with the construction of the topside at Aker Stord and the semi hull at the Samsung Yard in Korea. All five subsea templates were installed offshore, and preparations were made for the drilling of production wells.

Employer award In November GDF SUEZ E&P Norge was voted Norway’s most attractive oil and gas employer in an annual employer brand survey. The award was based on results from a survey carried out by the talent search company Scouting, which collected feedback from 1,000 managers and senior staff in 68 oil and gas companies in Norway.

ONS 2008 Offshore Northern Seas (ONS) in Stavanger marked a major occasion for GDF SUEZ, as the first opportunity for the new company to present itself to the oil industry and the public. GDF SUEZ was present with two stands at the ONS Exhibition. Executive Vice President Jean-Marie Dauger was chairman of the conference committee and the Group’s Vice Chairman and President Jean-François Cirelli gave a presentation.

First LNG cargo The very first GDF SUEZ LNG cargo was lifted at Snøhvit on 5 March. This first delivery marked the opening of a new LNG supply route capable of providing 700 million m3 of gas in a full year. A total of three cargos were lifted during 2008.

New licenses Early in 2008, GDF SUEZ E&P Norge was awarded four new licenses, including operatorship on PL469 where a site survey was successfully completed in August. An agreement was signed with Norske Shell to acquire a 10% interest in PL326.

04+05

the year 2008

Key figures turnover MILLIOn NOK

4,193 net result MILLION NOK

1,268 oil and gas production MILLION BOE

10.8 Highlights

last eight years MILLION NOK

investments MILLION NOK

‘01

294

‘02

502

‘03

529

‘04

1,266

‘05

1,487

‘06

1,367

‘07 ‘08

last eight years MILLION NOK

3,864

838

‘01 ‘02

969

‘03

1,327

‘04

1,992

‘05

1,712

‘06

2,310

1,612

‘07

2,844

4,193

‘08

3,864

last eight years MILLION NOK

exploration costs MILLION NOK

‘01

-34

‘02

‘03

‘04

264

‘05

366

‘06

467

‘07 ‘08

last eight years MILLION NOK

528

‘01

‘02

‘03

‘04

‘05

126

‘06

204

508

‘07

335

1,268

‘08

528

last eight years MILLION BOE

equity 31.12 MILLION NOK

‘01

1.2

‘02

2.6

‘03

2.7

‘04

4.8

‘05

4.0

last eight years MILLION NOK

1,879

216

‘01 ‘02

671

‘03

893

‘04

1,472

‘05

2,140

‘06

3.3

‘06

2,607

‘07

4.2

‘07

3,116

‘08

10.8

‘08

1,879

06+07

managing director’s statement

Continued growth under our new name As a result of the merger between the Gaz de France group and the SUEZ group in July 2008, Gaz de France Norge AS changed its name to GDF SUEZ E&P Norge AS. We are excited to be part of the new energy giant GDF SUEZ. The organisation continued to grow throughout the year, nearly doubling the number of employees during 2008.

GDF SUEZ E&P Norge was voted Norway’s most attractive oil and gas employer in an annual employer brand survey. Feedback was collected from 1,000 senior managers and senior staff in 68 oil and gas companies. The annual internal survey also indicates a high level of satisfaction with the working environment.

Production. The 2008 production numbers more than doubled the 2007 results, with a total of 10.8 million boe. During 2008, new production records were set

several times, stabilising at a level of 40,000 boe per day at the end of the year. In December, the Fram East development drilling programme was completed. The Fram field, Fram East and Fram West, performed well throughout the year, producing well above budget both for oil and gas. The Njord field increased production, mainly due to a full year of gas production. Gas production contributed 76% to the total Njord 2008 production. On Snøhvit, several of the startup problems have been rectified

during 2008. Towards the end of the year, after the planned 2008 repair and modification work was completed, the overall performance of Snøhvit improved considerably.

Exploration. During 2008, the company participated in the drilling of six exploration and appraisal wells, with discoveries made in two wells. In early 2008, GDF SUEZ E&P Norge was awarded four new licenses, including operatorship in PL469 where a site survey was successfully completed in August. An agreement was signed with Norske Shell to acquire a 10% interest in PL326.

Gjøa. Fabrication of the Gjøa installations progressed with construction of the topside at Aker Stord and the semi hull at the Samsung Yard in Korea. All five subsea templates were installed offshore, and preparations were made for the drilling of production wells. The license partners have established an HSE strategy where no fatalities, accidents or harm to people are clearly stated goals. 2008 has been the year when major operating strategies and plans have been put into action.

At year-end, 55 employees from the company were seconded to the StatoilHydro project organisation.

Developments. At the turn of the year, the PL025 partners approved the recommended concept for the possible development of the Gudrun gas/ condensate field. The concept includes the installation of a partial processing platform on Gudrun with tie-back to Sleipner for further processing and export.

During 2008, work has been done to mature the Njord North West Flank discovery, a possible development with tie-back to Njord.

Financial Results. Production figures well above target and high prices resulted in sound financial results.

Terje Overvik Managing Director

06+07

managing director’s statement

Production. The 2008 production numbers more than doubled the 2007 results, with a total of 10.8 million boe. During 2008, new production records were set

during 2008. Towards the end of the year, after the planned 2008 repair and modification work was completed, the overall performance of Snøhvit improved considerably.

At year-end, 55 employees from the company were seconded to the StatoilHydro project organisation.

During 2008, work has been done to mature the Njord North West Flank discovery, a possible development with tie-back to Njord.

Financial Results. Production figures well above target and high prices resulted in sound financial results.

Terje Overvik Managing Director

GDF SUEZ E&P Norge

As one of the newcomers on the Norwegian Continental Shelf, GDF SUEZ E&P Norge has established a solid portfolio of exploration and production licenses in its eight year history.

Our history in Norway

08+09

2001

2002

2003

2004

2005

2006

2007

2008

The formal establishment of Gaz de France Norge AS, a wholly owned affiliate of GDF International S.A.S., was registered in April and, by June, the first four employees were located in the company’s offices in Stavanger. The final approbation of the acquisition from Statoil of interests in Snøhvit and Njord was completed in early July and the partners approved the PDO for Snøhvit in September. At the end of the year, an interest in PL006C (Tyr) was acquired from Enterprise, but after drilling a dry well, the company relinquished this license.

In March, the Snøhvit project reached a milestone when the PDO was approved in Parliament. Through the sale of the State’s Direct Financial Interest (SDFI), Gaz de France Norge acquired a 15% interest in the Fram field in the northern North Sea, and through an acquisition from BP, a 12.5% interest in block 15/3 in the Gudrun area. In the 17 licensing round an award of a 30% interest was received in PL285 in the Norwegian Sea, but after a 3D seismic survey, the partners decided to relinquish the license in 2005.

In a transaction with Norsk Hydro, Gaz de France Norge acquired a 30% interest in Gjøa, a discovery in the North Sea holding significant quantities of gas and oil. In parallel, the company engaged in the important process of being pre-qualified as operator on the NCS, and approbation was received from the Ministry in October. The Fram Vest field came into production, on schedule and below budget, on 2 October. An acquisition of Amerada Hess’ 15% interest in Area F in the Barents Sea was made at the end of the year.

A historic milestone was reached when an agreement for joint operatorship on Gjøa was estab lished with Statoil, approved by all partners and sanctioned by the authorities in February. Statoil became the operator for the development phase and Gaz de France Norge for the production phase. In the 18 licensing round we were awarded interests in PL328 and PL329 in the Norwegian Sea, and through the APA 2004 award later in the year we obtained other interests in the Norwegian Sea as well as the Barents Sea.

The Plan for Development and Operation (PDO) for the Njord Gas Export project was approved by the authorities in January and the Fram East PDO was approved in April. The awards in APA 2005 of a 15% share in PL090D together with the other partners in Fram and 20% in PL376 further strengthened Gaz de France Norge’s presence in the prolific Fram area. The Astero discovery in the Fram PL090B license was the first discovery for Gaz de France in Norway and launched an extensive exploration drilling campaign in the area.

In the 19th Licensing Round, Gaz de France Norge was awarded interests in the Barents Sea; a 12% interest in PL110C with the other Snøhvit partners and a 20% interest in PL394 with Norsk Hydro, Statoil and Petoro. Throughout the year successful appraisal wells were drilled on Gudrun (North Sea), Tornerose (Barents Sea) and Astero (Fram Area). The first Fram East well was successfully brought on stream on 30 October. The PDOs for Gjøa and Fram B were approved by the partners and submitted to the authorities for approval on 15 December.

In June, the PDO for the Gjøa field was approved by Norwegian authorities. The Snøhvit project reached a major milestone in August, when the wells were opened and hydrocarbons were let into the LNG plant on Melkøya. In October, the first LNG cargo left the island. The Njord and Fram fields became gas producers, as start-up of gas export was initiated (in October for Fram and December for Njord). In APA 2006 Gaz de France Norge was awarded operatorship of PL423 S. The company acquired 3D seismic for this license in the early autumn of 2007.

Yearly production was doubled and reached an all time high of 10.8 million boe. Gjøa construction progressed with the topside at Stord and the hull in Korea. Our first own LNG cargo was lifted at Snøhvit on 5 March. In APA 2007, Gaz de France Norge was awarded four licenses, including operatorship on PL469 where a site survey was successfully completed in August. An agreement was signed with Norske Shell to acquire a 10% interest in PL326. The Gudrun concept selection was made at the turn of the year. The merger led to a change of the company’s name, GDF SUEZ E&P Norge AS on 1 January 2009.

license portfolio growth GDF SUEZ E&P Norge AS

exploration licenses production licenses

SNØHVIT

PL187 PL174 PL191 PL285 PL006C

Snøhvit Njord

2001

Fram Gudrun Snøhvit Njord

2002

Area F PL187 PL174 PL191 PL285

PL110B PL311B PL347 PL348 PL329 PL328 PL311 Area F PL187 PL285

Gjøa Fram Gudrun Snøhvit Njord

2003

2004

PL376 PL090D PL110B PL311B PL347 PL348 PL289 PL329 PL328 PL311 Area F PL187

PL110C PL394 PL376 PL090D PL110B PL311B PL347 PL348 PL289 PL329 PL328 PL311 Area F PL187

PL448 PL423S PL394 PL110C PL376 PL090D PL110B PL347 PL348 PL289 PL329 PL328 Area F PL187

PL153B PL448B PL469 PL488 PL448 PL423S PL394 PL110C PL376 PL090D PL110B PL348 PL289 PL329 PL328 Area F PL187

Gjøa Fram Gudrun Snøhvit Njord Astero Vega Sør

2005

2006

2007

2008

Njord

Gjøa fram

gudrun

activities on the Norwegian continental shelf GDF SUEZ E&P Norge has grown rapidly since being established in 2001. The company is a partner in the Fram, Njord and Snøhvit fields, among others, and will become operator at Gjøa when the field starts production in 2010.

GDF SUEZ E&P Norge

As one of the newcomers on the Norwegian Continental Shelf, GDF SUEZ E&P Norge has established a solid portfolio of exploration and production licenses in its eight year history.

Our history in Norway

08+09

2001

2002

2003

2004

2005

2006

2007

2008

license portfolio growth GDF SUEZ E&P Norge AS

exploration licenses production licenses

SNØHVIT

PL187 PL174 PL191 PL285 PL006C

Snøhvit Njord

2001

Fram Gudrun Snøhvit Njord

2002

Area F PL187 PL174 PL191 PL285

PL110B PL311B PL347 PL348 PL329 PL328 PL311 Area F PL187 PL285

Gjøa Fram Gudrun Snøhvit Njord

2003

2004

PL376 PL090D PL110B PL311B PL347 PL348 PL289 PL329 PL328 PL311 Area F PL187

PL110C PL394 PL376 PL090D PL110B PL311B PL347 PL348 PL289 PL329 PL328 PL311 Area F PL187

PL448 PL423S PL394 PL110C PL376 PL090D PL110B PL347 PL348 PL289 PL329 PL328 Area F PL187

PL153B PL448B PL469 PL488 PL448 PL423S PL394 PL110C PL376 PL090D PL110B PL348 PL289 PL329 PL328 Area F PL187

Gjøa Fram Gudrun Snøhvit Njord Astero Vega Sør

2005

2006

2007

2008

Njord

Gjøa fram

gudrun

GDF SUEZ exploration and production

Looking to new regions

The Exploration-Production Division (DEP) is responsible for all the Group’s exploration and production activities around the world. A primary objective is to achieve 2P reserves around 1.5 billion boe.

United Kingdom

Netherlands

Germany

Egypt

Other regions

In 1998, the Group helped develop the ElginFranklin field in the central basin of the British North Sea and then progressively expanded its portfolio of licenses.

In 2000, the Group became an offshore operator in the Netherlands by acquiring companies owned by TransCanada Pipelines. In addition, this acquisition allowed it to become the operator of NoordGasTransport, the major Dutch underwater pipeline. The Group owns stakes in 46 fields in Dutch waters. Forty of these fields are in production, and the Group acts as operator on most of them. As of December 31, 2008, the share of proven and probable reserves held by the Group in these fields represented 118 Mboe, nearly all of which was in the form of gas. In 2008, GDF SUEZ bought a set of oil and gas exploration & production assets from NAM in the Dutch North Sea, near the NOGAT pipeline, GDF SUEZ becoming the operator of NOGAT with a 30% stake. The acquired assets include shares in five blocks currently in production and other potential volumes in existing sources and discoveries with a high potential for exploration. This acquisition considerably extends the company’s activity in the Netherlands.

The Group began its exploration-production activities in 1994 when it acquired Erdöl-Erdgas Gommern GmbH (EEG). In 2003, it purchased onshore assets owned in Germany by Preussag Energie GmbH (PEG). In 2007, EEG merged with and was absorbed by PEG. The entity resulting from the merger is now known as GDF SUEZ E&P Deutschland GmbH. PEG and EEG’s rights on underground storage sites were transferred to the GDF SUEZ Infrastructures Business Line in 2008. On December 31, 2008 the Group owned stakes in 62 oil and natural gas fields in Germany, including 56 in production, with proven and probable reserves of 151 million boe including approximately 58% in form of natural gas. The acquisition of PEG assets enabled GDF SUEZ to indirectly expand its presence in the German market due to its 11% stake in EGM, which owns transmission and distribution infrastructures and markets a portion of the gas produced by the Group in north-west Germany. In 2008, the Group maintained its commitment to CO2 storage research, an area in which it signed a cooperation agreement with the Vattenfall Group in 2007, for an experimental CO2 injection and natural gas recovery improvement project on the Altmark site.

The Group won a bidding process and on September 15, 2005 finalised a concession agreement with Egypt’s national company, EGAS, and the Egyptian government, thereby obtaining a 100% stake in the West El Burullus off-shore block, located in the Nile River delta. Fifty percent of the shares were later sold to Dana Petroleum. In 2007, the Group increased its presence in Egypt by acquiring a 45% stake in the Alam El Shawish West license from Vegas Oil & Gas. At the end of 2008, the Group’s share of proven and probable reserves in Egypt was 12.7 Mboe. In addition, in 2007, the Group signed an agreement with Shell to acquire a 10% stake in the new exploration license requested by Shell on North West Damietta, a request that was accepted by the Egyptian authorities in 2008.

GDF SUEZ is also present in Algeria, the Ivory Coast, Mauritania, Libya, Azerbaijan and France.

At the end of 2008, the Group owned a stake in 29 fields located in the British North Sea, of which 13 were in production. As of December 31, 2008, the share of proven and probable reserves held by the Group (including the reserves held by its 22.5% stake in EFOG) in these fields represented 76 Mboe, of which around 68% was in the form of gas.

Mauritania: After the agreements signed in 2005 with Dana Petroleum, in 2006, GDF SUEZ entered into three offshore blocks off the coast of Mauritania: 24% in block 1, 27.85% in block 7 and 26% in block 8, but the last block is being dropped due to a lack of prospects.

Elgin Franklin

Gjøa Fram

Southern Gas Basin

France: The Group acquired a 50% stake in the Pays du Saulnois license in France.

Offshore Netherlands

Bains

netherlands

Altmark germany

france

Peg

Pays du Saulnois

NB! Oppløsning kart Yalama Azerbaijan

22 West el Burullus

algeriA

Touat

Side Side 10-11. 10-11. Graf Graf nr nr 11 Totalside reserves million BOE side 10 10 2008: gml gml703,7 rapport rapport

Azerbaijan: In 2008, the Group also acquired a 15% stake in the Yalama exploration license in Azerbaijan. No discoveries were made during post-acquisition drilling.

norway

united kingdom

Reserves (proven + probable) Gaz Gaz de de France France E&P E&P Natural gas and oil. Geographical breakdown

Libya: In 2008, GDF SUEZ began working in Libya by acquiring from Hellenic Petroleum SA 20% of an exploration-production license that involves five onshore blocks in the Sirte basin and one onshore block in the Murzuq basin.

Njord

Ivory Coast: GDF SUEZ owns 100% of the company ENERCI. This company holds 12% of an offshore production site which supplies the local market.

Snøhvit

44 55

Algeria: Since 2002, the Group is operator of the Touat permit in southern Algeria, in partnership with Sonatrach. The exploration/ appraisal phase ended in 2007, and the development plan was drafted in 2008. The approval of this development plan by the Algerian authorities is underway.

10+11

Production areas 2008 Gaz Gaz de de France France E&P E&P Natural gas and oil. Geographical breakdown

Side Side 10-11. 10-11. Graf Graf nr nr 22 Totalside production 2008:rapport 51,3 million BOE side 10 10 gml gml rapport

norway (49%)

united kingdom (11%)

norway (20%)

united kingdom (20%)

germany (21%)

others (2%)

netherlands (36%)

others (2%)

netherlands (17%)

germany (22%)

LIBYA

Sirte

NW Damietta Alam El Shawish West egypt

Murzuq

Offshore Mauritania MAURITANIA

Ivory coast

Foxtrot

GDF SUEZ exploration and production

Looking to new regions

United Kingdom

Netherlands

Germany

Egypt

Other regions

In 1998, the Group helped develop the ElginFranklin field in the central basin of the British North Sea and then progressively expanded its portfolio of licenses.

GDF SUEZ is also present in Algeria, the Ivory Coast, Mauritania, Libya, Azerbaijan and France.

Elgin Franklin

Gjøa Fram

Southern Gas Basin

France: The Group acquired a 50% stake in the Pays du Saulnois license in France.

Offshore Netherlands

Bains

netherlands

Altmark germany

france

Peg

Pays du Saulnois

NB! Oppløsning kart Yalama Azerbaijan

22 West el Burullus

algeriA

Touat

Side Side 10-11. 10-11. Graf Graf nr nr 11 Totalside reserves million BOE side 10 10 2008: gml gml703,7 rapport rapport

Azerbaijan: In 2008, the Group also acquired a 15% stake in the Yalama exploration license in Azerbaijan. No discoveries were made during post-acquisition drilling.

norway

united kingdom

Reserves (proven + probable) Gaz Gaz de de France France E&P E&P Natural gas and oil. Geographical breakdown

Njord

Ivory Coast: GDF SUEZ owns 100% of the company ENERCI. This company holds 12% of an offshore production site which supplies the local market.

Snøhvit

44 55

10+11

Production areas 2008 Gaz Gaz de de France France E&P E&P Natural gas and oil. Geographical breakdown

Side Side 10-11. 10-11. Graf Graf nr nr 22 Totalside production 2008:rapport 51,3 million BOE side 10 10 gml gml rapport

norway (49%)

united kingdom (11%)

norway (20%)

united kingdom (20%)

germany (21%)

others (2%)

netherlands (36%)

others (2%)

netherlands (17%)

germany (22%)

LIBYA

Sirte

NW Damietta Alam El Shawish West egypt

Murzuq

Offshore Mauritania MAURITANIA

Ivory coast

Foxtrot

5 4

GDF SUEZ group 3

Worldwide presence 3

Energy France is the leading supplier of 1 1 gas in France, and the leading contributor of wind power. GDF SUEZ markets gas, electricity and service packages throughout France to private customers, businesses and local authorities. GDF SUEZ also produces electricity in France, and promotes renewable resources. Its energy mix includes 70% renewable energies. The purpose of GDF SUEZ’s energy management is to supply its sales units with electricity and gas at the best possible price so as to optimise its energy balance in France. GDF SUEZ offers its private customers heating systems and value-for-money domestic services which enable them to save energy and respect the environment.

Global Gas & LNG

GDF SUEZ produces electricity across Europe, Latin America, North America, the Middle East and Asia. Alongside traditional power stations (in particular gas-fuelled plants), GDF SUEZ focuses on cleaner production processes, with more and more plants generating electricity from renewable sources through subsidiaries and holdings in cogeneration, wind power, hydroelectric power and biomass. As a global energy operator, GDF SUEZ distributes and supplies both gas and electricity in many countries in Europe – particularly the Benelux countries, Germany, Italy, Hungary and Romania – and in North America, Latin America, Asia and the Middle East.

Infrastructures

GDF SUEZ 2 2 is the leading buyer of natural gas in Europe, and the world leader in LNG. The Group has a balanced portfolio of oil and gas assets which are at various stages of development. The Group is active in exploration and production in the Netherlands, Germany, the United Kingdom, Norway, Algeria, Egypt, and to a more limited extent, in Mauritania, Ivory Coast, Denmark, Libya, France, USA and Azerbaijan. GDF SUEZ has an active policy to manage and secure its supplies, and for this purpose it has developed one of the most diversified portfolios in Europe. A subsidiary of GDF SUEZ and Société Générale, Gaselys, provides access to energy traded markets, risk management and asset optimisation solutions to all players along the energy chain.

GazGaz de France de France E&PE&P SideSide 10-11. 10-11. GrafGraf nr 2nr 2 sideside 10 gml 10 gml rapport rapport

3 7 6

GDF SUEZ has the largest gas transportation network in Europe. GRTgaz, a wholly owned and unbundled subsidiary of GDF SUEZ, operates and sells capacity. The Group also manages transmission networks in Germany and holds shares in transmission networks in Austria, Slovakia and Belgium. LNG constitutes a strategic priority for the Group. It contributes towards diversifying and securing the supply of natural gas in Europe. The total gas storage capacity of GDF SUEZ in Europe amounts to around 20% of Europe’s overall gas storage capacity. In France, GrDF, a subsidiary of the GDF SUEZ Group, manages Europe’s longest distribution network. GDF SUEZ is active in the transportation of electricity in Belgium via a stake in Elia, the body in charge of managing Belgium’s high-voltage network.

Suez Environnement

GDF SUEZ is Europe’s leading provider of energy services. GDF SUEZ offers its residential, corporate and local authority customers energy and environmental solutions which are effective and sustainable, thanks to the know-how of its entities and its extensive European network. GDF SUEZ provides engineering consultancy services covering the entire life cycle of electricity, nuclear, gas and other industrial facilities and infrastructures worldwide. The Group designs, produces, operates and manages electrical engineering, mechanical engineering and climate-control facilities and deploys industrial maintenance solutions. GDF SUEZ also designs and implements solutions to optimise energy consumption by integrating the production and distribution of such energies.

SUEZ Environnement and its subsidiaries are committed to the day-to-day challenge of conserving resources and protecting eco-systems by providing innovative solutions to millions of people and industries in the fields of drinking water, wastewater treatment and waste management. In the water sector, SUEZ Environnement’s operations include the catchment, treatment and distribution of drinking water, the collection and purification of domestic and industrial water and the biological and energy development of sludge resulting from sewage works. In the waste sector, SUEZ Environnement ensures collection of all types of waste (except radioactive waste), selection and preliminary treatment of waste as well as recycling, energy recovery and elimination of residual waste by incineration or burial.

6 1 europe:

5 north america:

5,300 €5.0 employees

france:

belgium:

104,350

20,620

€30.5

€13

employees

Energy Services

9 10 9 10 8

1 5

181,920 €71.4

billion 2008 revenues

employees

billion 2008 revenues

employees

billion 2008 revenues

asia & pacific:

billion 2008 revenues

6,200 €3.3 employees

Natural gas sales 2008 By type of client

GazGaz de France de France Group Group SideSide 12-13. 12-13. GrafGraf nr 1nr 1 total natural gas sales: 294 Twh sideside 12 gml 12 gml rapport rapport

12+13

GazGaz de France de France E&PE&P SideSide 10-11. 10-11. GrafGraf nr 1nr 1 sideside 10 gml 10 gml rapport rapport

Energy Europe & International

Energy France

As one of the leading energy providers in the world, GDF SUEZ is active along the entire energy value chain, in electricity and natural gas, upstream and downstream. The Group is divided into six divisions.

Geographical distribution of supplies Natural gas and liquid hydrocarbons

GazGaz de France de France Group Group SideSide 12-13. 12-13. GrafGraf nr 2nr 2 Total supply 2008: 909 billion twh sideside 12 gml 12 gml rapport rapport

Residential customers (45%)

norway (23%)

trinidad and tobago (8%)

Public distribution (32%)

netherlands (15%)

egypt (6%)

contracts at market price (15%)

russia (14%)

others (5%)

subscription tariffs (8%)

middle east & asia* (12%)

united kingdom (4%)

algeria (11%)

10 Libya (2%)

* including LT tolling agreements

Africa: south america:

3,050 €2.6 employees

billion 2008 revenues

3,530 €0.8 employees

billion 2008 revenues

5 4

GDF SUEZ group 3

Worldwide presence 3

Global Gas & LNG

Infrastructures

GazGaz de France de France E&PE&P SideSide 10-11. 10-11. GrafGraf nr 2nr 2 sideside 10 gml 10 gml rapport rapport

3 7 6

Suez Environnement

6 1 europe:

5 north america:

5,300 €5.0 employees

france:

belgium:

104,350

20,620

€30.5

€13

employees

Energy Services

9 10 9 10 8

1 5

181,920 €71.4

billion 2008 revenues

employees

billion 2008 revenues

employees

billion 2008 revenues

asia & pacific:

billion 2008 revenues

6,200 €3.3 employees

Natural gas sales 2008 By type of client

GazGaz de France de France Group Group SideSide 12-13. 12-13. GrafGraf nr 1nr 1 total natural gas sales: 294 Twh sideside 12 gml 12 gml rapport rapport

12+13

GazGaz de France de France E&PE&P SideSide 10-11. 10-11. GrafGraf nr 1nr 1 sideside 10 gml 10 gml rapport rapport

Energy Europe & International

Energy France

Geographical distribution of supplies Natural gas and liquid hydrocarbons

GazGaz de France de France Group Group SideSide 12-13. 12-13. GrafGraf nr 2nr 2 Total supply 2008: 909 billion twh sideside 12 gml 12 gml rapport rapport

Residential customers (45%)

norway (23%)

trinidad and tobago (8%)

Public distribution (32%)

netherlands (15%)

egypt (6%)

contracts at market price (15%)

russia (14%)

others (5%)

subscription tariffs (8%)

middle east & asia* (12%)

united kingdom (4%)

algeria (11%)

10 Libya (2%)

* including LT tolling agreements

Africa: south america:

3,050 €2.6 employees

billion 2008 revenues

3,530 €0.8 employees

billion 2008 revenues

GDF SUEZ merger

From 1 January 2009 our company name changed to GDF SUEZ E&P Norge. We are still the same people, with the same commitment and drive, and with the same ambitions. But we are also an independent piece of a bigger picture.

Merger between two world leaders in energy

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GDF + SUEZ Paris, 27 February 2006: The Board of Directors of Suez and the Board of Directors of Gaz de France approved a friendly merger between the two groups. The merger was approved by the European Union in the autumn of 2006, and was finalised in July 2008. SUEZ, an international industrial group, designed sustainable and innovative solutions for the manageÂment of public utility services in collaboration with public authorities, businesses and individuals. The group aimed to answer essential needs in

electricity, natural gas, energy services, water and waste management.

In an increasingly energydependent Europe, the size of the new Group will make it a natural partner of large producing countries and will facilitate GAZ DE FRANCE was a major development of major energy energy player in Europe. As projects. The new Group will conthe leading European natural tinue to implement a dynamic gas supplier, the group had development policy in its exploramore than 47,500 employees, tion and production activities. recorded net sales of â&#x201A;Ź 27,427 The combination of the indusmillion in 2007, and served trial and commercial know-how 14.7 million customers. of the two groups in the areas of energy and environment will The merger between the two companies has created a European allow the new entity to compete leader in gas and liquefied natural on equal terms with the main players in an open market, gas (LNG) with a secure, diversified and flexible supply portfolio. for the benefit of end-users.

The new Group has a financial structure that sustains the ambitious strategy of industrial growth. GDF SUEZ is present along the entire energy value chain, in electricity and natural gas, upstream and downstream. The Group handles purchasing, producing and marketing, and is involved in transportation, distribution, management and development of major infrastructures for natural gas and electricity.

GDF SUEZ is the number one independent power producer in the world, and ranks fifth in production and supply in Europe. The Group is the largest importer and buyer of liquefied natural gas (LNG) in Europe, and the largest buyer and supplier of natural gas. GDF SUEZ also has the largest transportation network in Europe, and is the number one supplier of multi-technical services across Europe.

GDF SUEZ merger

Merger between two world leaders in energy

14+15

electricity, natural gas, energy services, water and waste management.

Activities Gjøa field development and operations

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Snøhvit and Barents Sea

Norwegian Sea

North Sea

Focus areas

Field development and operations Gjøa

The Gjøa field is GDF SUEZ E&P Norge’s first production operatorship on the Norwegian Continental Shelf and is expected to produce hydrocarbons for more than 15 years. StatoilHydro is the operator in the development phase while GDF SUEZ E&P Norge will take over the operatorship at production start-up, scheduled for 2010.

Gjøa is GDF SUEZ E&P Norge’s first major commitment towards its ambition to become a significant player on the Norwegian Continental Shelf. Gjøa will enable GDF SUEZ E&P Norge to build field development and operation competence, and prepare the organisation for future operatorships.

Exploration and development Fram /Gjøa area

The Fram/Gjøa area is proven as a prolific area of the North Sea and may still contain significant discoveries. GDF SUEZ E&P Norge has acquired additional exploration acreage in the Fram/Gjøa area.

Exploration and development Snøhvit /Barents Sea

Through these commitments GDF SUEZ E&P Norge has established a strong position which we will build on in our efforts to explore new opportunities in the area.

Snøhvit is the first LNG development project on the Norwegian Continental Shelf, with an expected yearly production of 4.1 million tons of LNG.

Gjøa, as a new processing and transportation hub in the area, offers additional capacity for tie-ins of new and existing discoveries.

Based solely on subsea installations, the Snøhvit field is situated approximately 140 km from the shore. The facilities for gas receiving and handling, conversion into LNG for storage and loading onto LNG tankers are located on the island of Melkøya.

The very first GDF SUEZ LNG cargo was lifted on 5 March 2008. This delivery marked the opening of a new LNG supply route capable of providing 700 million m3 of gas in a full year. GDF SUEZ E&P Norge has dedicated resources for exploration to prove up additional reserves which could justify a second phase of the Snøhvit LNG development.

Exploration and development Norwegian Sea

The Norwegian Sea is potentially holding large volumes of yet undiscovered resources. In partnership with other operators, GDF SUEZ E&P Norge is undertaking an extensive exploration programme in the area.

The Njord field, in the Norwegian Sea, is already a key contributor to GDF SUEZ E&P Norge’s total production of oil. Gas export from the field started in December 2007. New discoveries close to the Njord field may generate new development options with benefits also to the lifetime of the Njord field and facilities.

Activities Gjøa field development and operations

16+17

Snøhvit and Barents Sea

Norwegian Sea

North Sea

Focus areas

Field development and operations Gjøa

Exploration and development Fram /Gjøa area

The Fram/Gjøa area is proven as a prolific area of the North Sea and may still contain significant discoveries. GDF SUEZ E&P Norge has acquired additional exploration acreage in the Fram/Gjøa area.

Exploration and development Snøhvit /Barents Sea

Through these commitments GDF SUEZ E&P Norge has established a strong position which we will build on in our efforts to explore new opportunities in the area.

Snøhvit is the first LNG development project on the Norwegian Continental Shelf, with an expected yearly production of 4.1 million tons of LNG.

Gjøa, as a new processing and transportation hub in the area, offers additional capacity for tie-ins of new and existing discoveries.

Exploration and development Norwegian Sea

Gjøa development All five Gjøa subsea templates have been installed offshore, and preparations for the drilling of production wells were made towards the end of the year.

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5 4

gjøa

partners in the gjøa license 1 2 3 4 5

GDF SUEZ E&P NORGE (30%) petoro (30%) statoilhydro (20%) shell (12%) rwe-DEA (8%)

location Located in blocks 35/9 and 36/7, Gjøa lies about 70 kilometres north of Troll and 45 kilometres off the Norwegian west coast.

1989 Discovery by Norsk Hydro

Project Development – with clear targets As the construction of the Gjøa facilities is well under way at several sites in Norway and abroad, the operator and the license partners have established focus on safety, where ‘no fatalities, accidents, losses or harm to people’ is a clearly stated goal. Towards the end of the year the drilling rig, Transocean Searcher, was mobilised to start on the 13-well drilling programme. The planned production start-up is October 2010.

The development plan calls for the StatoilHydro-operated gas/ condensate fields Vega and Vega South to be tied back to the Gjøa platform.

Development Concept – value creation The selected conceptual solution and production strategy will maximise the value of the Gjøa resources whilst minimising the risk. The development concept for the Gjøa resources will include 4x4 slot subsea templates and one satellite well tied back to a semi-submersible production

unit with full processing capabilities. The export of stabilised oil is planned through a new 53 km pipeline tied in to the pipeline running from the Troll C platform to the Mongstad crude oil terminal (the TOR2 pipeline system). Export of rich gas is planned through a new 130 km pipeline tied in to Britain’s FLAGS pipeline system, ending up at the St. Fergus gas terminal in Scotland. GDF SUEZ’s equity gas will be sold at the landing point in the UK. The Gjøa reservoir will be developed with simple pressure depletion. Injection of either gas or water to maintain pressure

2003 30% GDF SUEZ E&P Norge acquires an interest in the field

may potentially increase recovery, but has not yet proven to be cost efficient. Electricity for the field installations will largely be obtained from land-based power supply at Mongstad. This solution was chosen based on a considerable reduction in CO2 and NOx emission levels, lower costs, improved economy, reduced noise level, and reduced fuel consumption – which is in line with the environmental profile we want to achieve and maintain as the future operator of Gjøa.

interest owned by GDF SUEZ E&P Norge

Area Solution – a new hub in the North Sea Gjøa has opened a new area of the North Sea for oil and gas production. The coordinated development of the Vega and Gjøa fields provides mutual benefits for the partnerships, in addition to satisfying a requirement from the authorities to optimise the total output from the area. Strategic positioning of the Gjøa production facility as a central hub in the area, offering spare liquid capacity when Gjøa oil production is declining and spare gas capacity when Vega goes off plateau, represents

2004

Joint operatorship agreement with StatoilHydro signed

1 a great upside potential for GDF SUEZ as a major shareholder and future operator of Gjøa – and as a partner in nearby production licenses. This upside potential has also been recognised by the Gjøa partners and other stakeholders. The presence of infrastructure combined with facilities with spare processing capacity will support further exploration and development in the area.

Gjøa development All five Gjøa subsea templates have been installed offshore, and preparations for the drilling of production wells were made towards the end of the year.

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5 4

gjøa

partners in the gjøa license 1 2 3 4 5

GDF SUEZ E&P NORGE (30%) petoro (30%) statoilhydro (20%) shell (12%) rwe-DEA (8%)

location Located in blocks 35/9 and 36/7, Gjøa lies about 70 kilometres north of Troll and 45 kilometres off the Norwegian west coast.

1989 Discovery by Norsk Hydro

The development plan calls for the StatoilHydro-operated gas/ condensate fields Vega and Vega South to be tied back to the Gjøa platform.

2003 30% GDF SUEZ E&P Norge acquires an interest in the field

interest owned by GDF SUEZ E&P Norge

2004

Joint operatorship agreement with StatoilHydro signed

Gjøa pre-operations 2008 has been the year when major operating strategies and plans have been put into action. Management systems and specialised computer tools are being developed.

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2010 Scheduled start-up of production

The Gjøa operations concept is based on GDF SUEZ’ core competence along with the competence and personell from one or several operations support contractors. The most significant operations support contract was awarded the IKM group in Stavanger early in the year. Recruitment of own employees also continued through the year, and at the beginning of 2009 we had an employee headcount of about 75% of full operation. The operations staff is involved in all aspects of the project where they can influence the operability and maintainability of the facilities.

GDF SUEZ E&P Norge employees are involved in the commissioning of the hull at Samsung in Korea, building of the living quarters at LMT on Stord, commissioning and start-up preparations at Aker Solutions in Oslo, and also the manufacturing and testing of the subsea systems at FMC in Kongsberg. The pre-operations tasks include development of work processes and operations systems. Training courses are carried out by the GDF SUEZ E&P Norge operations team in cooperation with a supplier, as well as the development of a competence management system.

Maintenance management A key milestone was achieved when the contract for the Computerised Maintenance Management System and associated Technical Data Library was awarded in November 2008. In addition to the hydrocarbon management systems, these are the core tools for maintaining the integrity of all systems and equipment on board Gjøa. These tools will interface with several other management and support systems in the company, and a task force is currently working on configuring the systems to suit the Gjøa operations. Integration of the Technical Library System provides a tool for instant updating of plant data. The aim is to have

billion NOK estimated total investment in the field

the systems ready for use in the autumn of 2009.

Handover of operatorship The planned date for handover of operatorship from StatoilHydro to GDF SUEZ E&P Norge is 1 October 2010. By that time, all preparations for operations will have to be completed; all staff hired and trained; all procedures and governing documents developed and understood and all operational services contracts awarded. A strategy document has been prepared to secure a gradual, smooth and controlled handover process. This is organised in 13 work groups with representatives from each company. Checklists and protocols

billion Sm of gas are estimated reserves 3

are being developed for each designated area. A coordination team is supervising and reporting on the progress of this transfer process.

Integrated operations (IO) Access to real time data improves decision-making. Collaboration across geographical boundaries promotes teamwork in wider circles and secures common understanding of operational issues. These are some of the benefits we expect to gain through Integrated Operations. Gjøa has ambitions to become a leader on incorporating IO in a greenfield development, and the best available technology has been implemented to reach this target.

million barrels of oil and condensate are estimated reserves

Installation and commissioning of collaboration rooms have been completed in the Sandnes offices, and are in progress in the Gjøa living quarters. The Florø base will also have a similar room in the offices to be built in 2009. Condition monitoring systems have been extended from rotating machinery to key valves and static equipment and process elements. IT solutions that can associate applications with data sources without hardwiring are being selected. These have the potential to extend condition monitoring to incorporate ‘intelligent’ monitoring of complex process elements.

Gjøa pre-operations 2008 has been the year when major operating strategies and plans have been put into action. Management systems and specialised computer tools are being developed.

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2010 Scheduled start-up of production

billion NOK estimated total investment in the field

the systems ready for use in the autumn of 2009.

billion Sm of gas are estimated reserves 3

are being developed for each designated area. A coordination team is supervising and reporting on the progress of this transfer process.

million barrels of oil and condensate are estimated reserves

Snøhvit and the Barents Sea The very first GDF SUEZ LNG cargo lifted at Snøhvit on 5 March 2008 was a company milestone.

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6 snøhvit

partners in the snøhvit license 1 2 3 4 5 6

GDF SUEZ E&P NORGE (12%) statoilhydro (33.53%) petoro (30%) total (18.4%) amerada hess (3.26%) RWE-DEA (2.81%)

location The Snøhvit field is located approximately 140 km from the island of Melkøya, Hammerfest.

1984

The Snøhvit field was discovered through well 7121/4-1

Snøhvit LNG Plant Several technical disturbances led to significant shutdowns of the LNG plant during first half of 2008. In addition, limitations in other equipment restricted plant capacity to 60% of design. Modifications and cleaning operations carried out during a planned shut down in the summer increased capacity to above 80%. In October, after replacing two of the faulty heat exchangers and back blowing other equipment, capacity increased to above 90%.

During 2008, extensive work has been carried out in the license to decide on a final repair solution that will secure design capacity and the robustness of the plant. GDF SUEZ has been actively involved in this work and a decision is expected in early March for final repair during 2009. The first GDF SUEZ shipment of LNG left Snøhvit 5 March 2008. This first cargo marked the opening of a new LNG supply route capable of providing 700 million m3 of gas to our company in a full year. GDF SUEZ lifted a total of three cargoes of LNG in 2008.

Offshore facilities Field performance is according to plan. Due to the late startup of Snøhvit and the reduced production level, the Albatross start-up has been postponed from 2008 to 2009. Train II The progress on Train II has been delayed due to the poor results of both Askeladd Beta and Tornerose appraisal drilling. Studies are continuing on smaller train sizes and the plan is to determine the feasibility by the end of 2009.

2001 12% GDF SUEZ E&P Norge joins the project

Barents Sea exploration The Barents Sea remains one of the core areas for GDF SUEZ E&P Norge, and exploration to expand our portfolio has continued. In 2008, we were awarded a 12% equity in PL448B and PL488 together with the Snøhvit partners in APA 2007. GDF SUEZ E&P Norge participated in three exploration and appraisal wells in the Barents Sea in 2008.

interest held by GDF SUEZ E&P Norge

In PL110C where GDF SUEZ E&P Norge holds a 12% equity, two appraisal wells, 7123/4-1S and 7123/4-1A, were drilled to delineate the Tornerose discovery first proven by well 7122/6-1 back in 1987. The wells are located 110 km northwest of Hammerfest. The wells proved presence of reservoir in Triassic rock but both were dry.

4.1

million tonnes LNG will be produced yearly

1 The Arenaria prospect in PL394, where GDF SUEZ E&P Norge holds a 20% equity, is located approximately 160 km north of Nordkapp. The license was awarded in the 19 round in 2006. The 7224/6-1 well proved gas in Middle Triassic strata of poor reservoir quality.

Snøhvit and the Barents Sea The very first GDF SUEZ LNG cargo lifted at Snøhvit on 5 March 2008 was a company milestone.

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6 snøhvit

partners in the snøhvit license 1 2 3 4 5 6

GDF SUEZ E&P NORGE (12%) statoilhydro (33.53%) petoro (30%) total (18.4%) amerada hess (3.26%) RWE-DEA (2.81%)

location The Snøhvit field is located approximately 140 km from the island of Melkøya, Hammerfest.

1984

The Snøhvit field was discovered through well 7121/4-1

2001 12% GDF SUEZ E&P Norge joins the project

interest held by GDF SUEZ E&P Norge

4.1

million tonnes LNG will be produced yearly

The Norwegian Sea Good reservoir performance with high production level, and a new drilling campaign with the first well hitting undrained oil were some of the highlights of the year.

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njord

partners in the njord license 1 2 3 4 5 6

GDF SUEZ E&P NORGE (20%) E.ON RuHrgas (30%) statoilhydro (20%) exxon mobil (20%) petoro (7.5%) endeavour (2.5%)

location The Njord field is located 130 km north-west of Kristiansund and 30 kilometres west of Draugen.

1997 Production start-up on Njord

Njord The Njord field is located in blocks 6407/7 and 6407/10, around 130 km northwest of Kristiansund and 30 km west of the Draugen field. The field has been developed with subsea wells tied back to the Njord A semi-submersible drilling and production facility. The oil is stored and offloaded from the storage vessel, Njord B, to tankers for transport to the market. Njord is a key asset within GDF SUEZ E&P Norge’s portfolio and one of its three producing assets. Njord contributed a total oil production of 4.9 million barrels of oil equivalents in 2008, representing 46% of the affiliate’s total production. The average daily net oil production for GDF SUEZ from this asset

was approximately 3300 bpd – above budget due to good reservoir performance. A new drilling campaign started in 2008 and in mid-December the first well (A-18A) came in with good initial production from an undepleted reservoir. Work started on the second well at the end of the year.

North West Flank The North West Flank originally comprised a gas/condensate discovery, the B-structure, some 6 km northwest of Njord. In 2007, a well was drilled with both an exploration target in the neighbouring A-structure, and an appraisal target in the B-structure. The exploration well was a success, and the A-structure was confirmed as a discovery with similar resource

potential to the B-structure. The current plan is to select a concept by mid-2009 and to submit a Plan for Development and Operation (PDO) by the end of 2009.

Norwegian Sea Exploration In 2008, GDF SUEZ E&P Norge participated in four exploration and appraisal wells in the Norwegian Sea. The Galtvort prospect in PL348, where GDF SUEZ E&P Norge holds 20%, is located 30 km northeast of the Njord field and 9 km northwest of the Draugen field in the Norwegian Sea. The Galtvort prospect was drilled in the first part of 2008 and proved gas in Middle to Lower Jurassic sandstones. Wells 6407/8-4S and 6407/8-4A (sidetrack) pene-

2001 20%

GDF SUEZ E&P Norge acquires an interest in the Njord field

trated two different segments of the Galtvort structure. The total size of the discovery is estimated at 1-3 billion Sm3 recoverable gas. The licensees are currently re-evaluating the size of the discovery prior to considering potential development solutions. The Noatun prospect in PL107, where GDF SUEZ E&P Norge holds 20%, is located 16 km north of the Njord field. A gas/ condensate discovery was made in the autumn of 2008 in well 6407/7-8 and the sidetrack 6407/7-8A in reservoirs from the Middle to Lower Jurassic Ages. The Obelix prospect in PL328, where GDF SUEZ E&P Norge holds 30%, is located 355 km west of Brønnøysund. The purpose of the 6605/1-1 well was

interest held by GDF SUEZ E&P Norge in the Njord field

to prove petroleum in Upper Cretaceous reservoir rocks. Rocks with good reservoir quality were encountered in Upper Cretaceous strata, but the results of the well were negative. An agreement was signed with Norske Shell to acquire a 10% interest in PL326.

Operatorship in PL469 Early in 2008, GDF SUEZ E&P Norge was awarded 70% equity and the operatorship of PL469 together with partner Discover Petroleum in APA 2007. The work commitment included drilling one firm well within two years of award. In order to fulfil this commitment, a rig was secured through a farm-down agreement and the

2007 Start-up of the Njord Gas Export Project

1 transfer of 25% equity to Aker Exploration. GDF SUEZ now holds a 52.5% equity in the license. In August 2008, a site survey over the drilling target was successfully acquired using the vessel M/S Birkeland from FUGRO SURVEY, without any HSE incidents or accidents during the operations. Exploration drilling is planned for the summer of 2009 using the Aker Barents rig.

APA 2008 GDF SUEZ E&P Norge focused on the areas close to Njord and this resulted in the award of licenses PL107B and PL107C in January 2009, as partner with 20% equity.

The Norwegian Sea Good reservoir performance with high production level, and a new drilling campaign with the first well hitting undrained oil were some of the highlights of the year.

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njord

partners in the njord license 1 2 3 4 5 6

GDF SUEZ E&P NORGE (20%) E.ON RuHrgas (30%) statoilhydro (20%) exxon mobil (20%) petoro (7.5%) endeavour (2.5%)

location The Njord field is located 130 km north-west of Kristiansund and 30 kilometres west of Draugen.

1997 Production start-up on Njord

potential to the B-structure. The current plan is to select a concept by mid-2009 and to submit a Plan for Development and Operation (PDO) by the end of 2009.

2001 20%

GDF SUEZ E&P Norge acquires an interest in the Njord field

interest held by GDF SUEZ E&P Norge in the Njord field

2007 Start-up of the Njord Gas Export Project

APA 2008 GDF SUEZ E&P Norge focused on the areas close to Njord and this resulted in the award of licenses PL107B and PL107C in January 2009, as partner with 20% equity.

The North Sea The drilling campaign on Fram East was successfully completed, and production performance was well above budget.

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1 3

gjøa fram

partners in the fram license gudrun

1 2 3 4

GDF SUEZ E&P NORGE (15%) statoilhydro (45%) exxon mobil (25%) idemitsu (15%)

location The Fram field is located 20 km north of Troll. Gudrun is situated about 40 kilometres north of the Sleipner area.

2002

GDF SUEZ E&P Norge acquires interest in the Fram field

Fram Fram is a key asset in GDF SUEZ E&P Norge’s portfolio. Production from the Fram field contributed a total oil production of 3.44 Mboe in 2008, which constituted 32% of our company’s total production. The average daily oil production for GDF SUEZ from this asset was 9425 bpd – a consistent production performance above budget. Fram also increased its gas export on 1 October from 0.77 MSm3/day up to 1.1 MSm3/day. The second phase of the Fram development, Fram East, added production from three more wells in 2008. The final well, B-24, was finished on 23 December.

Vega South Vega South is located some 10 km north-northwest of the Fram field, in block 35/11, and will be developed together with the Vega field. Vega and Vega South will be developed with three subsea templates, with two production wells in each, tied back to the Gjøa platform. Vega and Vega South will have access to the shared production and export facilities at Gjøa through a tiein and processing agreement. Production start-up is planned in October 2010.

Astero The promising Astero oil discovery (PL090B), made in 2005 in the Fram area, was successfully appraised in 2006. The partnership takes a positive view of proceeding towards a commercial development of this discovery. The current plan is to establish the development concept by 2010 and start production in 2013. Gudrun Concept selection (DG2) was made in December to develop the Gudrun light oil/gas condensate discovery (PL025) with a light processing platform tied in to Sleipner some 50 km to the south.

2003 15% Production start-up on Fram Vest

The current plan is to submit a Plan for Development and Operation (PDO) by the end of 2009. Production start-up is expected in the 4 quarter of 2013. The Sigrun light oil discovery some 10 km away from Gudrun, will also be included in the development plan as a subsea tie-in to Gudrun. The development will also have flexibility to include the Brynhild prospect (PL187), adjacent to the Gudrun license, in the future. The Brynhild prospect is expected to be drilled in 2010 and, given discovery, may be developed from the Gudrun platform.

Interest held by GDF SUEZ E&P Norge in the Fram field

North Sea exploration The Gjøa-Fram area remains one of the core areas for GDF SUEZ E&P Norge, and exploration to expand our portfolio in the area has continued. In 2008, we were awarded a 30% equity in PL153B together with the Gjøa partners in APA 2007. The drilling of the C-east prospect in PL090, where GDF SUEZ E&P Norge holds 15%, was completed in January 2008. The well proved oil and gas in Middle Jurassic sandstones. The discovery is expected to be developed via the Fram facilities. The Marsvin prospect in PL289, where GDF SUEZ E&P Norge

3.4

million boe equity production on Fram in 2008

1 holds 16%, is located 4 km east of the Trym field near the Danish sector. The prospect was drilled in the autumn of 2008 and the well 3/7-7 had a negative result. In this license GDF SUEZ E&P Norge farmed down from 30% to 16% to Faroe Petroleum Norge effective 1 January 2008.

Operatorship in PL423S In late summer 2008, a 3D seismic survey that was acquired over the license in 2007 was delivered. Based on this data, a decision was made to apply for a one-year extension of the initial license period delaying the drill-or-drop decision to February 2010.

The North Sea The drilling campaign on Fram East was successfully completed, and production performance was well above budget.

26+27

1 3

gjøa fram

partners in the fram license gudrun

1 2 3 4

GDF SUEZ E&P NORGE (15%) statoilhydro (45%) exxon mobil (25%) idemitsu (15%)

location The Fram field is located 20 km north of Troll. Gudrun is situated about 40 kilometres north of the Sleipner area.

2002

GDF SUEZ E&P Norge acquires interest in the Fram field

2003 15% Production start-up on Fram Vest

Interest held by GDF SUEZ E&P Norge in the Fram field

3.4

million boe equity production on Fram in 2008

Sustainable development A strategy founded on sustainable development ‘Countering climate disturbance and combating pollution, devising a genuinely environmental approach to growth by changing not only production methods, but also our attitudes and the way we consume’ – these are some of the priorities that Group Chairman and Chief Operating Officer Gérard Mestrallet have set for the GDF SUEZ Group. It is through a strategy founded on sustainable development that the GDF SUEZ Group seeks to reconcile its different aspirations: performance and environment, competitiveness and community, profitability and public service. In its approach to sustainable development, GDF SUEZ focuses on listening to its local partners and maintaining transparent communication with all its stakeholders – employees, shareholders, customers, civil society, voluntary associations and political authorities.

28+29 28 / 29

This dialogue is an instrument of management in itself, feeding into the sustainable development action plans of the Group and its subsidiaries. In the sphere of sustainable development, the Group’s priorities include: responding to the major energy challenges of today and tomorrow, by managing energy and promoting innovation translating sustainable development values into its practices and culture incorporating sustainable development into its sales offerings for the benefit of customer developing responsible human resource and management practices for the whole Group protecting the environment and acting as a socially responsible company, in particular by playing an active part in regional development.

The primary objectives are: to establish a climate of trust conducive to collective action to reconcile each party’s needs and constraints to create value across the board to share expertise with its partners.

Health, safety and environment – the foundation of our culture

Most attractive oil and gas employer

high ambitions

prestigious award

The HSE ambition of GDF SUEZ E&P Norge is to have zero incidents. All work performed within the area of HSE is done to support this ambition. In order to achieve our ambition we believe that it is essential to focus on all three elements in HSE; health, safety and environment. We further believe that we need to have a holistic approach to HSE knowing that the whole is more than the sum of its parts.

GDF SUEZ E&P Norge was voted Norway’s most attractive oil and gas employer in the first annual employer brand survey 2008.

By implementing this approach into our way of working, we will together develop a culture where HSE is the foundation. Our focus areas for HSE in 2008 were systems and regulations, technology and operations, social relations and network, interaction and work processes and values, attitudes and competence.

The award was based on results from the talent search company Scouting’s annual employer brand survey, which collected feedback from 1,000 managers and senior staff in 68 oil and gas companies in Norway. The target group and the selection of questions render the survey unique, even internationally. GDF SUEZ E&P Norge ranked as the most attractive employer in the survey. – Still expanding, GDF SUEZ E&P Norge provides its employees with a number of interesting and challenging tasks, Scouting stated when the results were announced.

28+29 28 / 29

Health, safety and environment – the foundation of our culture

Most attractive oil and gas employer

high ambitions

prestigious award

GDF SUEZ E&P Norge was voted Norway’s most attractive oil and gas employer in the first annual employer brand survey 2008.

Community relations

30+31

A positive cooperation: Den Norske Turistforening The positive cooperation established with Den Norske Turistforening (DNT) and Stavanger Turistforening (STF) in 2003 continued in 2008. Preikestolen Basecamp: Construction of the Preikestolen Basecamp

near the Pulpit Rock was started. Here you may spend the night in a tree, camp off a cliff or sleep by the edge of the lake. Officially opened in April 2009, each camp offers outdoor activities adapted to its location. Grensesømmen: Connecting the hiking trail along the NorwegianSwedish border, known as Grensesømmen, to the European long distance path E1 has also been an important project. Preparations to mark and upgrade the route through Finnmark have been made. Turplanleggeren: The development of an online hike

planner – Turplanleggeren – continued in 2008.

Supporting sports activities for youngsters FTIF – Florø Turn & Idrettsforening

In 2008, GDF SUEZ E&P Norge established a sponsorship agreement with Florø Turn & Idrettsforening, the local athletics club in Florø. The agreement focused on youth and children’s sports activities. The club has around 900 members. A special athletics afternoon class for children has been established, and several sports events such as Floramila, Rett Vest and Floraleikane have been arranged with the support of GDF SUEZ E&P Norge. The national championship teams from Florø Turn & Idrettsforening all competed under the name ‘Gaz de France Team Florø’, bringing home a total of 32 medals from five different championships. FTIF was ranked third at the national youth championships in 2008. The GDF SUEZ Gjøa base will be located in Florø, and through Florø Turn & Idrettsforening we want to contribute to positive activities for youngsters in the local community. GDF SUEZ is also a long-term sponsor of athletics in France.

European Capital of Culture 2008 Face Peace student project

The Stavanger region was a European Capital of Culture in 2008. Stavanger2008 presented over 160 projects, incorporating more than 1,100 events that attracted around two million participants. The Stavanger2008 project Face Peace was based on the GDF SUEZ collection of Nobel Peace Prize Laureate portraits by renowned photographer Micheline Pelletier. Students from Stavanger Katedralskole, Kongsgård upper secondary school, studied the work of the laureates, organised an exhibition of the portraits and guided the visitors. In addition, there were lectures, presentations and artistic performances in connection with the opening of the exhibition.

Community relations

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planner – Turplanleggeren – continued in 2008.

Supporting sports activities for youngsters FTIF – Florø Turn & Idrettsforening

European Capital of Culture 2008 Face Peace student project

Our team Management

Our employees as of February 2009

HSE&Q

exploration

finance & admin.

human resources

asset

Management M

hse&q M

Brit Jorunn Marker (1971) HR Advisor

Chris Gates (1954) Contracts Manager

Mary Høvring (1966) Business Analyst

Eirik Matre (1983) Controller

Erling Kindem (1962) Asset Leader

Terje Overvik (1951) Managing Director

Eva Fagernes (1970) HSE&Q Manager

Aina Skretting Østrått (1967) HR Advisor

Tore Jan Landmark (1956) Office Facility Manager

Anne Selbæk (1961) SAP Controller

Juliette Bou (1970) Controller

Carl Otto Houge (1964) Asset Leader

Arnaud Berthet (1973) Advisor - Special Projects

Kai Solheim (1976) Senior HSE&Q Engineer

finance & admin.

Knut-Olaf Rusten (1965) ICT Manager

Tone Lise Pedersen (1975) Controller

Nina E. Grundetjern (1961) Sr. Adm. Secretary

Geir Pettersen (1947) Project Manager

Anne Blomberg (1976) Communication / PR advisor

human resources

Johannes Finborud (1954) Finance & Adm. Manager

Gaute Barstad (1967) ICT Service Manager

Eirik Sørensen (1976) Joint Venture Controller

Renate Horpestad (1981) Adm. Secretary

Olivier Gorieu (1971) LNG Expert

Kari Samnøen (1958) Adm. Coord / HR Advisor

Magnar Støle (1961) HR Manager

Sigurd Helgesen (1955) Tax Manager

Johan Bjerka (1971) Business Analyst

Randi Følgesvold (1962) Controller

asset

Hilde Ådland (1967) Senior Facilities Engineer

Anne Svendsen (1968) HR Advisor

Kari Holm (1965) Accounting Manager

Atle Sonesen (1969) Asset Manager

Florence Grabowski (1978) Reservoir Engineer

Tom K. Steinskog (1953) Adv. Field Dev. / R&D Coord. Kjell Y. Buer (1956) Principal Geologist exploration Tina R. Olsen (1967) Exploration Manager Paul Milner (1962) Area Exploration Leader Rikkert Moeys (1969) Area Exploration Leader Raphaël Fillon (1976) Area Exploration Leader

Marianne Førland (1965) Technical Sup. Coordinator

Tove Thorsnes (1955) Senior Geologist

Cecile Damstra (1956) Principal Geophysicist

Wim Lekens (1978) Geologist

Alv Aanestad (1950) Senior Geophysicist

Magali Romanet (1981) Geologist

Nirina Haller (1975) Senior Geophysicist

Camilla Støckert (1980) Junior Geologist

René Thränhardt (1969) Senior Geologist

David Grabowski (1977) Reservoir Engineer

Jörgen Samuelsson (1967) Senior Geologist

Jan Willem Achterberg (1961) Subsurface D.M. Coord.

Our team Management

Our employees as of February 2009

HSE&Q

exploration

finance & admin.

human resources

asset

Management M

hse&q M

Brit Jorunn Marker (1971) HR Advisor

Chris Gates (1954) Contracts Manager

Mary Høvring (1966) Business Analyst

Eirik Matre (1983) Controller

Erling Kindem (1962) Asset Leader

Terje Overvik (1951) Managing Director

Eva Fagernes (1970) HSE&Q Manager

Aina Skretting Østrått (1967) HR Advisor

Tore Jan Landmark (1956) Office Facility Manager

Anne Selbæk (1961) SAP Controller

Juliette Bou (1970) Controller

Carl Otto Houge (1964) Asset Leader

Arnaud Berthet (1973) Advisor - Special Projects

Kai Solheim (1976) Senior HSE&Q Engineer

finance & admin.

Knut-Olaf Rusten (1965) ICT Manager

Tone Lise Pedersen (1975) Controller

Nina E. Grundetjern (1961) Sr. Adm. Secretary

Geir Pettersen (1947) Project Manager

Anne Blomberg (1976) Communication / PR advisor

human resources

Johannes Finborud (1954) Finance & Adm. Manager

Gaute Barstad (1967) ICT Service Manager

Eirik Sørensen (1976) Joint Venture Controller

Renate Horpestad (1981) Adm. Secretary

Olivier Gorieu (1971) LNG Expert

Kari Samnøen (1958) Adm. Coord / HR Advisor

Magnar Støle (1961) HR Manager

Sigurd Helgesen (1955) Tax Manager

Johan Bjerka (1971) Business Analyst

Randi Følgesvold (1962) Controller

asset

Hilde Ådland (1967) Senior Facilities Engineer

Anne Svendsen (1968) HR Advisor

Kari Holm (1965) Accounting Manager

Atle Sonesen (1969) Asset Manager

Florence Grabowski (1978) Reservoir Engineer

Marianne Førland (1965) Technical Sup. Coordinator

Tove Thorsnes (1955) Senior Geologist

Cecile Damstra (1956) Principal Geophysicist

Wim Lekens (1978) Geologist

Alv Aanestad (1950) Senior Geophysicist

Magali Romanet (1981) Geologist

Nirina Haller (1975) Senior Geophysicist

Camilla Støckert (1980) Junior Geologist

René Thränhardt (1969) Senior Geologist

David Grabowski (1977) Reservoir Engineer

Jörgen Samuelsson (1967) Senior Geologist

Jan Willem Achterberg (1961) Subsurface D.M. Coord.

gas & commercial

gas & commercial Karel H. Schothorst (1960) Gas & Commercial Mgr Kjell Arne Abrahamsen (1950) Commercial Lead David Gazel (1971) Lead Sales Eirik Vestersjø (1967) Lead Transport and Infrastr. Camille Rossi (1983) Marketing Assistant

operations

operations M Kjell Ola Jørgensen (1946) Operations Manager Steffi Baltrusch (1962) Project Manager IO Rebecca R. Christensen (1955) Technical Manager Sigbjørn Kalvenes (1954) Subsurface Manager Oddvar Aarberg (1957) Log. & Base Mgr. - Florø Gerhard V. Sund (1965) Drilling / Well Op. Manager

Kick Sterkman (1968) Offshore Inst. Manager Arild Jåsund (1962) Offshore Inst. Manager Per Langhaug (1956) Offshore Inst. Manager John Winterstø (1965) Offshore Inst. Manager Pål Hamre (1956) Commissioning Manager Jens Petter Gjærum (1964) Op / Maint. Team Leader

Nils Martin Bakka (1965) Op / Maint. Team Leader Bjarte Rimereit (1966) Op / Maint. Team Leader Oddgeir Madsen (1953) Deck & Marine Team Leader Ørjan Midttveit (1969) Deck & Marine Team Leader Årstein Bringsvor (1967) Team Leader Auto / El / Tele Bente Brinchmann (1967) Health & W.E. Team Leader Torhild S. Jensen (1958) Senior Secretary

Erik Winge (1977) Cost and Planning Engineer

Wouter Hazebelt (1963) Senior Reservoir Geologist

Arne Crogh (1967) Senior Production Engineer

Steve Bryant (1953) Senior Operations Geologist

Siv Kirstin Borgersen (1964) Senior Production Engineer

Hans Chr. Rentsch (1961) Sr. Structure / Inspection Eng.

Olav Dolonen (1963) Senior Process Engineer

Matthew G. Reppert (1961) Senior Petrophysicist

Torunn Haugvallstad (1961) Senior Reservoir Engineer

Jochen Rappke (1963) Sr. Geologist / Geophysicist

Pierre Olivier (1973) Senior Reservoir Engineer

Clarence Soosaipillai (1961) Senior Subsea Engineer

Geir-Helge Hansen (1968) Senior Electrical Engineer Tommy Andreassen (1965) Senior Drilling / Compl. Eng. Tom Baug (1966) Purchasing / Log. Coord. Arne Bekkeheien (1977) Maintenance Engineer Raju Pakalapati (1978) Process Engineer Jone Harestad (1971) Operation Engineer Thorleif Simonsen (1974) Metering Engineer

Bjørn Hereid (1959) Material Coordinator Jone Aase (1964) Op. Technician / 3D CAD resp. Dagfinn Ommundsen (1957) Operations Technician Vidar Mostrøm (1958) Operations Technician Ove Lid (1968) Operations Technician Kjersti M. Byrkjeland (1977) Operations Technician

Tom Borger Nielsen (1958) Operations Technician Trond Myklebust (1971) Operations Technician Petter Holm (1964) Operations Technician Jan Rune Kalsvik (1966) Operations Technician Åse Bleie (1983) Operations Technician Ingrunn Frette (1978) Operations Technician Håvard H. Johansen (1984) Operations Technician

Joakim Borgen (1973) Operations Technician Martha Viste (1974) Operations Technician Stig Erling Sande (1961) Operations Technician Aimée L. Øyborg (1985) Operations Technician Rune Dønheim (1972) Operations Technician Gunnar Løvås (1964) Operations Technician

gas & commercial

operations

Erik Winge (1977) Cost and Planning Engineer

Wouter Hazebelt (1963) Senior Reservoir Geologist

Arne Crogh (1967) Senior Production Engineer

Steve Bryant (1953) Senior Operations Geologist

Siv Kirstin Borgersen (1964) Senior Production Engineer

Hans Chr. Rentsch (1961) Sr. Structure / Inspection Eng.

Olav Dolonen (1963) Senior Process Engineer

Matthew G. Reppert (1961) Senior Petrophysicist

Torunn Haugvallstad (1961) Senior Reservoir Engineer

Jochen Rappke (1963) Sr. Geologist / Geophysicist

Pierre Olivier (1973) Senior Reservoir Engineer

Clarence Soosaipillai (1961) Senior Subsea Engineer

Directors’ report In 2010 GDF SUEZ E&P Norge will take over operatorship of Gjøa, and the substantial Gudrun project is currently being planned. Along with four new license awards in 2008 this makes for a promising future for a company that has only been present in Norway since 2001.

Jean-Marie Dauger

GDF SUEZ E&P Norge AS is engaged in the exploration for and production of oil and gas on the Norwegian Continental Shelf. The company’s head office is located in Sandnes. The company was established in 2001 as Gaz de France Norge AS but changed name to GDF SUEZ E&P Norge AS effective 1 January 2009. The change of name was a result of the merger between the Gaz de France group and the SUEZ group in July 2008. In connection with the merger of the two groups all shares in GDF SUEZ E&P Norge AS were transferred from GDF International SAS to GDF SUEZ E&P International SAS with effect from 31.12.2008. By the end of 2008 the company portfolio included 33 licenses on the Norwegian continental shelf including shares in the Njord, Fram, Snøhvit, Gjøa and Vega South fields. The company has been appointed as operator for the production phase of the Gjøa field planned to start late 2010 and is the operator of exploration licenses PL423S and PL469.

Exploration During 2008 the company participated in the drilling of six wildcat and appraisal wells. In October 2008 the company participated in the drilling of wildcat well 3/7-7 (PL289) in the southern part of the North Sea, but the well was dry. In the Norwegian Sea the company participated in the drill ing of three wells. Wildcat well 6407/8 – 4S & 4A (PL348) was drilled in May and June and gas was found in two separate struc tures. A second well is planned in the same license to find additional gas that could support

a potential future development. In September and October the company participated in the drilling of well 6407/7-8 & 8A (PL107) where gas and condensate was found. The discovery is located 16 km north of the Njord field. In December the drilling of well 6605/1-1 (PL328) started. The well was completed in early February 2009 but was dry. In the Barents Sea the company participated in the drilling of two wells. In April and May well 7123/4–1A&1S (PL110) was drilled to appraise the possible extension of the Tornerose discovery in a non-tested fault block but the well was dry. Wildcat well 7224/6-1 (PL394) was drilled in June and July, and gas was found. It is too early to say if the discovery can be developed. In October the company filed an application in the APA 2008 licensing round and was awarded shares in two licenses in the Njord area. In December the company signed an agreement with AS Norske Shell to acquire a 10% share in PL326 with effect from

36+37

Jean-Marie Dauger Chairman of the Board

Michel Bayle Board member

Valérie Duval Board member

Graduate of the ‘Ecole des Hautes Etudes Commerciales’. He has been working in the Group since 1978 and holds the position of Group Executive Vice President. Dauger is also in charge of the Global Gas and LNG business line. He is Chevalier de la Légion d’Honneur et de l’Ordre National du Mérite.

Graduate of the ‘Ecole Polytechnique’ and ‘Ecole Nationale des Ponts et Chaussées’. He worked for different harbour authorities from 1970 to 1986 and in the Group from 1986 until 2007, where he held positions as Research and Development VicePresident, and eventually E&P Vice President for the last seven years, until he retired from the Group in 2007.

Graduate of the ‘Ecole Poltechnique’ and ‘Ecole Nationale des Ponts et Chaussées’. She worked 12 years in the pharmaceutical industry and in the utilities industry in France and in Europe in Finance, Controlling and M&A departments, before joining the Group in early 2002 as Head of Investors Relations. Since 2005, she heads the Economics and Valuation Department in the Global Gas Business Line.

1.1.2009. The authorities have yet to approve the transaction before the transaction can be completed. In June the company signed an agreement with Aker Exploration AS to divest 17.5% of the company’s 70% share in PL469. The transaction has been approved by the authorities and secures the use of the Aker Barents drilling rig for the drilling of the planned well on PL469.

Development The development of the Gjøa field is progressing fine and at year end the project was 41.4% complete, slightly behind plan. Nearly 80% of the total project cost had been committed at year end and no major cost increase has been identified. The drilling of the first production well started early January 2009 13 days behind schedule. The Vega development project which includes the development of the Vega South field is 54.4% complete, a little behind schedule. The commercial negotiations regarding the processing and transportation of the Vega South

Oil reserves have been delayed and is now scheduled to start in March 2009. PDO for the Vega South Oil development is expected to be delivered during second half of 2009. In January 2009 the PL025 partners approved the recommended concept for the possible development of the Gudrun gas / condensate field. The concept includes the installation of a process platform which will partly process the well stream with tie-in to the Sleipner field installations for further processing and export of the gas through the Gassled system and landing of the liquids at Kårstø. It is expected that the PDO will be sanctioned before the end of 2009 and that production could start late 2013. During 2008 work has been done to mature the Njord North West Flank discovery into a possible development. Current plan calls for a development concept selection by end of September 2009 and a PDO submitted by the end of June 2010.

Operations In December the Fram East development drilling programme was completed as the injection well B-24 was completed. The total number of wells on the Fram East and West are thirteen; nine producers and four injection wells. The total Fram field production in 2008 was 3.4 million boe or 9,408 boe per day which is an increase of 37% from 2007. This is due to increased well capacity on Fram East and a full year of gas export. 90% of the Fram production is oil. Total production from the Njord field was 4.9 million boe or 13,390 boe per day which was 236% higher than in 2007. The increase in production is basically due to a full year of gas production. The Njord gas production contributed 76% to the total Njord production in 2008. On Snøhvit several of the startup problems have been rectified during 2008. In accordance with the long term Snøhvit improvement plan, which was developed early in 2008, parts of the heat

exchanger system have been replaced and critical equipment and machinery repaired or modified. Towards the end of the year after the planned 2008 work was completed, the LNG production and uptime levels has improved considerably. This positive trend has continued in 2009. The heat exchanger replacement program and other planned modifications will be completed in the second half of 2009. Total production from Snøhvit was 2.4 million boe in 2007 or 6.600 boe per day. Approximately 80% of this was LNG and the rest was condensate and LPG mix.

employee representatives were elected as members to the company board in the spring of 2008. During the Gjøa project phase a considerable number of employees from the company will be integrated in the StatoilHydro project organisation. They will be handling a number of important areas including sub-surface, process engineering, drilling and well technology and operations planning in general. At year end 55 employees from the company were seconded to the StatoilHydro Gjøa project organisation. The company has had no major accidents or injuries in 2008.

Working environment At year end the company had 105 employees. In accordance with applicable laws and regulations the company registers its employees’ absence due to illness. During 2008 the absence due to illness has been 1.4% (0.6% in 2007). The working environment and general welfare in the workplace is considered to be good. In accordance with the requirements of the Company Act two

Gender equality The Board of Directors and the Managing Director are attentive to society’s expectations and legal requirements to which the company is expected to comply in order to promote gender equality and stop differential treatment of women and men. There is a continuous effort to comply to these requirements. By year-end 29 of the 105 employees were women.

Jean-Marie Dauger

36+37

Jean-Marie Dauger Chairman of the Board

Michel Bayle Board member

Valérie Duval Board member

38+39

Directors’ report

The management team consists of nine persons of whom three are women. 42 new employees were recruited in 2008 of whom 13 are women and 29 are men. All salaries are established unprejudiced. Four employees work part-time and there are no differences in the working hour regulations for women and men.

Environment The company is operator of two exploration licenses; PL423S and PL469. There have been no emissions reported in connection with the operation of these licenses. The company is also nonoperating license partner on the Norwegian Continental Shelf. The reporting responsibility for emissions to air and water for the respective non-operated fields lies with the operator of the individual license. The company has from time to time oil cargos in transport. The company is actively co-operating with our operators and transporters to improve the level of safety on joint operations.

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Anne Svendsen Board member

Arild Jåsund Board member

Chairman of the Board of Directors of CGGVeritas Services (Norway) AS and Wavefield Inseis AS. Member of the main Board of Directors of Technip S.A. From 1987 to 2000, he was managing director of TOTAL Norge A.S. and from 1999 to 2000 he was also managing director of Fina Exploration Norway. His academic background is in economics, and he is Chevalier of the French Legion of Honour.

Graduate of the ‘Ecole Polytechnique’ and ‘Ecole Nationale Supérieure des Mines’. He has been working in the Group since 1993, holding various positions within the transport, distribution and exploration-production divisions. Since March 2007 he holds the position of E&P Vice President.

Employee representative who joined the company in September 2007 as HR Advisor. She has worked in the HR departments of NC and Saga and has also worked as a training consultant for the regional sports federation.

Employee representative who joined the company in November 2006 as Offshore Installation Manager. He has built his experience from work at installations such as Frigg, Varg and Snorre where he was operations manager from 2002 to 2006.

Financial market risk The company’s financial result is affected by fluctuations in oil prices and foreign currency exchange rates. The company’s loans are stated in NOK with floating interest rate. Consequently, the company’s profit and financial position will be affected by changes in the interest rate market. GDF SUEZ E&P Norge AS do not have any financial instruments to protect itself against financial market risk. Risk connected to the counterparties’ inability to fulfil their obligations is considered low, as the company’s sales mainly are to group companies and to other large corporations. The company has not realised losses on receivables during preceding years. The total exposure related to currency, interest and price fluctuations is monitored and evaluated by the Group as a part of the overall evaluation of the Group’s total exposure. Possible actions are implemented on a group level in accordance with existing procedures.

Financial aspects The production of crude oil in 2008 was 4.3 million bbls, an increase of 13% compared to 2007. This is primarily a result of the planned increase of oil production on Fram. A total of 4.3 million bbls of crude oil was sold in 2008, 23% higher than in 2007. Revenues from the crude oil sales were NOK 2,273 million, 50% higher than in 2007. Total revenues increased as a result of an increase in the average crude oil prices from USD 75.55 per bbl in 2007 to 102.57 USD per bbl in 2008 as well as increased sales volume. The company sold 647 million Sm3 of gas including three cargos of Snøhvit LNG in 2008. All gas was sold to other GDF SUEZ companies and amounted to NOK 1,336 million. The increase in gas revenues from NOK 43 million in 2007 is basically due to a full year of gas production and sales on all fields in 2008. This is also the main factor for the increase in the sale of

condensate, NGL’s and LPG mix which amounted to NOK 584 million in 2008 compared to only NOK 50 million in 2007. A total of 1.7 million boe of these products were sold in 2008. Net cash flow from operating activities in 2008 was NOK 2,164 million against NOK 1,198 million in 2007. The investments in 2008 amounted to NOK 3,864 million against NOK 2,844 million in 2007. The majority of the 2008 investments were in the ongoing development of the Gjøa and Vega South fields. The company’s inter-company long-term loan at the end of 2008 was NOK 8,198 million compared to NOK 5,937 million at the end of 2007. The increased long-term loan is due to the ongoing development of the Gjøa and Vega South fields. In December the company general assembly approved the payment of an extraordinary dividend of NOK 1,100 million to the shareholders. The dividend was paid in December 2008.

The company’s result after tax in 2008 was NOK 1,268 million compared to NOK 508 million in 2007. Total equity after the allocation of proposed dividend is NOK 1,879 million giving an equity ratio of 11.6%. Distributable equity at end of the year is NOK 266 million. The accounts have been prepared on a going concern basis.

The Board of Directors and the Managing Director confirm the basis for this in accordance with section 3-3 of the Norwegian Accounting Act. The Board of Directors is not aware of any conditions of significance that could impact the company’s result and financial position as per 31 December and which have not been reflected in the accounts.

The Board of Directors recommend that the following is distributed as dividend based on the 2008 accounts:

Net result 2008

NOK 1 267 619 500

Retained Earnings

NOK

Dividend

NOK 1 400 850 000

133 230 500

31 december 2008 / 24 march 2009

Jean-Marie Jacques Dauger Chairman of the board

Marie Michel Bayle Board member

Valérie Duval Board member

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Arild Jåsund Employee elected representative

Anne Svendsen Employee elected representative

Terje Overvik Managing director

38+39

Directors’ report

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Anne Svendsen Board member

Arild Jåsund Board member

The Board of Directors recommend that the following is distributed as dividend based on the 2008 accounts:

Net result 2008

NOK 1 267 619 500

Retained Earnings

NOK

Dividend

NOK 1 400 850 000

133 230 500

31 december 2008 / 24 march 2009

Jean-Marie Jacques Dauger Chairman of the board

Marie Michel Bayle Board member

Valérie Duval Board member

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Arild Jåsund Employee elected representative

Anne Svendsen Employee elected representative

Terje Overvik Managing director

Income statement

annual accounts

40+41

Note

2008

2007

4 192 979 228

1 612 343 138

Operating Income Sales oil and gas Gain on sale of assets

698 996

45 994 005

Total operating income

4 193 678 224

1 658 337 144

Operating expenses

920 769 604

512 355 129

Exploration expenses

387 579 568

252 561 169

5,6

52 519 336

36 347 496

Depreciations

847 639 022

391 580 995

Other operating expenses

45 246 160

20 152 261

Total operating expenses

2 253 753 692

1 212 997 050

Operating profit

1 939 924 533

445 340 094

Operating expenses

Payroll expenses

Financial income and Financial expenses Interest income Foreign currency exchange gain Interest income from group companies

Foreign currency exchange loss Interest expenses to group companies

Other interest expenses Net financial items Operating profit before tax

Tax expenses

Net income

20 998 806

4 782 211

843 916 599

33 444 009

14 724 828

159 500

105 062 513

66 210 662

348 626 468

93 568 005

9 767 365

137 419

-416 183 887

121 530 366

2 356 108 420

323 809 728

1 088 488 920

-184 631 960

1 267 619 500

508 441 688

Allocated as follows: Proposed dividend Transfer other equity Total allocations

1 400 850 000

-133 230 500

508 441 688

1 267 619 500

508 441 688

Income statement

annual accounts

40+41

Note

2008

2007

4 192 979 228

1 612 343 138

Operating Income Sales oil and gas Gain on sale of assets

698 996

45 994 005

Total operating income

4 193 678 224

1 658 337 144

Operating expenses

920 769 604

512 355 129

Exploration expenses

387 579 568

252 561 169

5,6

52 519 336

36 347 496

Depreciations

847 639 022

391 580 995

Other operating expenses

45 246 160

20 152 261

Total operating expenses

2 253 753 692

1 212 997 050

Operating profit

1 939 924 533

445 340 094

Operating expenses

Payroll expenses

Financial income and Financial expenses Interest income Foreign currency exchange gain Interest income from group companies

Foreign currency exchange loss Interest expenses to group companies

Other interest expenses Net financial items Operating profit before tax

Tax expenses

Net income

20 998 806

4 782 211

843 916 599

33 444 009

14 724 828

159 500

105 062 513

66 210 662

348 626 468

93 568 005

9 767 365

137 419

-416 183 887

121 530 366

2 356 108 420

323 809 728

1 088 488 920

-184 631 960

1 267 619 500

508 441 688

Allocated as follows: Proposed dividend Transfer other equity Total allocations

1 400 850 000

-133 230 500

508 441 688

1 267 619 500

508 441 688

Balance sheet

Cash flow statement

Note

31-12-2008

31-12-2007

42+43

2008

2007

2 356 108 420

323 809 728

assets Fixed assets

Operating profit before tax

Tangible fixed assets Property, plant & equipment

Total fixed assets

13 866 418 964

10 769 093 743

13 866 418 964

10 769 093 743

Current assets Drilling equipment and spare parts

34 128 839

11 572 319

Tax refund, exploration expenses 2007

285 226 155

187 898 523

Depreciations

869 057 745

405 431 605

Changes in accounts receivable and accounts receivable operators

-100 020 246

-139 252 237

Changes in accounts payable and accounts payable operators

234 225 647

515 764 381

Difference between pension cost and amounts paid into pension scheme

686 964

2 914 126

Changes in other balance sheet items

-1 481 189 644

-98 204 994

Net cash flow from operating activities

2 164 095 041

1 198 361 133

Acquired tangible fixed assets

-3 864 371 032

-2 844 370 954

Net cash flow from investing activities

-3 864 371 032

-2 844 370 954

New long-term borrowings

2 261 266 109

2 120 398 241

Dividend

-1 100 021 000

Net cash flow from financing activities

1 161 245 109

2 120 398 241

-539 030 882

474 388 420

560 778 568

86 390 148

21 747 686

560 778 568

Debtors Accounts receivable from operators Trade accounts receivable Other receivables

Total debtors Cash and cash equivalents

Total current assets Total assets

254 847 412

21 613 519

73 638 218

206 851 866

1 878 719 346

654 808 639

2 207 204 977

883 274 024

21 747 686

560 778 568

2 263 081 502

1 455 624 911

16 129 500 465

12 224 718 654

Equtiy and liabilities Equity

Paid-in capital Share capital Share premium reserve

12,13 12

Total paid-in capital

141 500 000

1 273 500 000

1 415 000 000

Cash and cash equivalents at beginning of year

Retained earnings Other equity

463 971 389

1 701 252 243

1 878 971 389

3 116 252 243

22 854 769

3 852 548

2 599 167 124

1 542 116 794

717 174 763

448 456 904

3 339 196 656

1 994 426 246

8 197 900 576

5 936 634 467

Total equity Liabilities

Provisions Pension liability Deferred tax Other provisions Total provisions

Other long term liabilities Long-term loan, parent company

Current liabilities Trade accounts payable Public duties payable Accounts payable to operator Dividend Other short term liabailties Total current liabilities

Net change in cash and cash equivalents

7 132 503

31 904 470

67 183 766

1 124 107 596

897 014 453

1 400 850 000

149 437 275

213 207 478

2 713 431 844

1 177 405 698

Total liabilities

14 250 529 077

9 108 466 411

Total equity and liabilities

16 129 500 465

12 224 718 654

Cash and cash equivalents at end of year

Balance sheet

Cash flow statement

Note

31-12-2008

31-12-2007

42+43

2008

2007

2 356 108 420

323 809 728

assets Fixed assets

Operating profit before tax

Tangible fixed assets Property, plant & equipment

Total fixed assets

13 866 418 964

10 769 093 743

13 866 418 964

10 769 093 743

Current assets Drilling equipment and spare parts

34 128 839

11 572 319

Tax refund, exploration expenses 2007

285 226 155

187 898 523

Depreciations

869 057 745

405 431 605

Changes in accounts receivable and accounts receivable operators

-100 020 246

-139 252 237

Changes in accounts payable and accounts payable operators

234 225 647

515 764 381

Difference between pension cost and amounts paid into pension scheme

686 964

2 914 126

Changes in other balance sheet items

-1 481 189 644

-98 204 994

Net cash flow from operating activities

2 164 095 041

1 198 361 133

Acquired tangible fixed assets

-3 864 371 032

-2 844 370 954

Net cash flow from investing activities

-3 864 371 032

-2 844 370 954

New long-term borrowings

2 261 266 109

2 120 398 241

Dividend

-1 100 021 000

Net cash flow from financing activities

1 161 245 109

2 120 398 241

-539 030 882

474 388 420

560 778 568

86 390 148

21 747 686

560 778 568

Debtors Accounts receivable from operators Trade accounts receivable Other receivables

Total debtors Cash and cash equivalents

Total current assets Total assets

254 847 412

21 613 519

73 638 218

206 851 866

1 878 719 346

654 808 639

2 207 204 977

883 274 024

21 747 686

560 778 568

2 263 081 502

1 455 624 911

16 129 500 465

12 224 718 654

Equtiy and liabilities Equity

Paid-in capital Share capital Share premium reserve

12,13 12

Total paid-in capital

141 500 000

1 273 500 000

1 415 000 000

Cash and cash equivalents at beginning of year

Retained earnings Other equity

463 971 389

1 701 252 243

1 878 971 389

3 116 252 243

22 854 769

3 852 548

2 599 167 124

1 542 116 794

717 174 763

448 456 904

3 339 196 656

1 994 426 246

8 197 900 576

5 936 634 467

Total equity Liabilities

Provisions Pension liability Deferred tax Other provisions Total provisions

Other long term liabilities Long-term loan, parent company

Current liabilities Trade accounts payable Public duties payable Accounts payable to operator Dividend Other short term liabailties Total current liabilities

Net change in cash and cash equivalents

7 132 503

31 904 470

67 183 766

1 124 107 596

897 014 453

1 400 850 000

149 437 275

213 207 478

2 713 431 844

1 177 405 698

Total liabilities

14 250 529 077

9 108 466 411

Total equity and liabilities

16 129 500 465

12 224 718 654

Cash and cash equivalents at end of year

Notes

44+45

01 Accounting policies The annual accounts have been prepared in accordance with the Norwegian Accounting Act and Norwegian generally accepted accounting principles.

Revenues. The sale of crude oil and gas is recognized at the point of delivery. For crude oil the point of delivery is at the offshore loading point or at shipment from terminal. Point of delivery for gas is at the gas receiving terminal onshore.

02 Financial market risk Assets liabilities and expenses related to participating interests in exploration and production licenses (joint ventures). The company’s participating interests in exploration and production licenses on the Norwegian Continental Shelf are accounted for in the income statement and the balance sheet in accordance with the proportional consolidation method.

The company’s financial result is affected by fluctuations in crude oil and gas prices and foreign currency exchange rates (mostly USD and EURO). The company’s loans are stated in NOK with floating interest rate. Consequently, the company will be affected also by changes in the interest rate market.

03 Bank deposits

Spare parts and drilling equipment. Spare parts and Expenses. Expenses are expensed as incurred in accordance with the matching principle; either along with the revenues they have generated or identified as a periodical expense.

drilling equipment are valued at the lower of cost or market value. Cost is estimated using the FIFO method.

NOK 6 195 921,17 of total bank deposits are restricted funds relating to withheld taxes. The company has an unused cash credit on NOK 15 000 000.

Over-/under lift and petroleum in stock. Obligations arising Estimates. In accordance with Norwegian generally accepted accounting principles, the management of the company is responsible for the estimates and assumptions that affect the valuation of assets and liabilities in the balance sheet and depreciations in the profit and loss statement. The final realizable values may deviate from these estimates.

as a result of lifted quantities of crude oil that are larger than the company’s participating interests in a license, are valued at production cost. Receivables arising as a result of lifted quantities of crude oil that are less than the company’s share in a license, are valued at the lower of production cost and sales price. Petroleum in stock which has not passed the Norm Price-point, is valued to production cost.

Classification and assessment of items in the balance sheet. Current assets and short-term liabilities include items due within one year and items related to ordinary working capital. All other items are classified as fixed assets/long-term debt. Current assets are valued at the lower of cost and fair value. Short-term debt is valued at the historical nominal value. Fixed assets are valued at cost, but written down to fair value if the decline in value is not expected to be temporary. Long-term debt is stated at the historical nominal value.

Foreign currency. Monetary balance sheet items in foreign currency are converted at the exchange rate on the closing balance date. All foreign currency transactions are recorded in NOK on the basis of the company’s monthly book-keeping currency exchange rates, which approximate market rates.

Exploration costs. Cost regarding geological studies and analysis are expensed as incurred. Exploration drilling costs are temporarily capitalized until new potential oil and gas reserves have been evaluated (the successful efforts method). When new reserves are discovered and fully developed and put into production, the exploration drilling costs will be depreciated based on the-unit-of-production method. Drilling costs related to dry holes are expensed.

Development costs. Costs including interest on building loan related to the development of commercial oil or gas fields are capitalized as a part of the installations. Capital expenditures on fields in production are capitalized based on information from the operator. Depreciation of oil and gas production facilities is calculated in accordance with the unit-of-production method. In accordance with this method the annual depreciation will be determined based on the relationship between the annual production and the estimated total oil and gas reserves that can be recovered with the existing production facilities in use. Depreciation of onshore equipment is calculated in accordance with the straight-line method.

Accounts receivables. Trade accounts receivables and other receivables are recorded at face value reduced by a provision for anticipated losses. Asset retirement obligation. When the retirement obligation has incurred, the liability amount is recognized as a long term provision and the same amount is capitalized as part of the producing asset. The asset cost is expensed through depreciations over the remaining useful life of the asset. The future changes in asset retirement obligation estimates are capitalized as part of the asset and charged to profit and loss prospectively over the remaining useful life of the asset.

Tax expense. Tax expense reflects both taxes on current taxable income and change in deferred income taxes. Deferred tax is calculated based on net temporary differences between the book and tax values at year end. The calculation has taken into account tax loss carry forward and uplift. The current tax rate has been used in the calculation of the deferred tax expense. The uplift reduces the special petroleum tax. Earned uplift from capitalized expenditures have been fully reflected in the tax calculation.

Pensions. Accounting for pensions is based on a linear vested principle and on expected wages at the point of retirement. Changes in pension schemes are amortized over the remaining vesting period. Estimate deviations are continuously charged to equity. Social security tax is included in the pension cost and liabilities. Cash flow statement. The cash flow statement is presented using the indirect method. Cash and cash equivalents include bank deposits.

Leasing. GDF SUEZ E&P Norge AS has only operational leasing contracts. The cost is continuously charged to the profit and loss.

04 Operating revenues The company’s production has been sold as follows: NOK 1 000

Norway

France

England

Sum 2008

Sum 2007 1 519 830

Crude oil

2 272 568

NGL

428 956

9 391

GAS

1 336 041

42 307

Condensate

155 414

40 815

Total

584 370

1 336 041

2 272 568

4 192 979

1 612 343

05 Salaries and fees 2008

2007

Salaries

97 081 615

48 378 145

Recharged salaries

88 944 314

33 060 269

Social security tax

13 620 311

6 770 111

Pension costs

12 171 640

7 760 823

Other employee benefits

18 590 084

6 498 686

Total

52 519 336

36 347 496

105

Man year at year end

The Managing Director received in 2008 NOK 3 257 015 in salary, bonus and other benefits. The Managing Director is entitled to resign at the age of 64 years with a pension of 66 % of full salary. In 2008 remuneration to the Board was NOK 140 000. Audit fees in 2008 totaled NOK 1 313 000 excl. VAT. Other services from auditors total NOK 789 860 excl. VAT. Such other services include assistance with the tax return preparation and correspondence with the Norwegian Oil Taxation Office.

Notes

44+45

01 Accounting policies The annual accounts have been prepared in accordance with the Norwegian Accounting Act and Norwegian generally accepted accounting principles.

03 Bank deposits

drilling equipment are valued at the lower of cost or market value. Cost is estimated using the FIFO method.

NOK 6 195 921,17 of total bank deposits are restricted funds relating to withheld taxes. The company has an unused cash credit on NOK 15 000 000.

Leasing. GDF SUEZ E&P Norge AS has only operational leasing contracts. The cost is continuously charged to the profit and loss.

04 Operating revenues The company’s production has been sold as follows: NOK 1 000

Norway

France

England

Sum 2008

Sum 2007 1 519 830

Crude oil

2 272 568

NGL

428 956

9 391

GAS

1 336 041

42 307

Condensate

155 414

40 815

Total

584 370

1 336 041

2 272 568

4 192 979

1 612 343

05 Salaries and fees 2008

2007

Salaries

97 081 615

48 378 145

Recharged salaries

88 944 314

33 060 269

Social security tax

13 620 311

6 770 111

Pension costs

12 171 640

7 760 823

Other employee benefits

18 590 084

6 498 686

Total

52 519 336

36 347 496

105

Man year at year end

Notes

46+47

06 Pensions

08 Other provisions and obligations

The company is required to have an occupational pension scheme in accordance with the the Norwegian law on required occupational pension (“lov om obligatorisk tjenestepensjon”). The company’s pension scheme meets the requirements of that law. The company has a retirement benefit plan covering all permanent staff. This benefit plan gives the employees the right to receive defined future pensions. These are mainly dependent on the number of years in service and the level of compensation at retirement. The obligation is financed through an insurance company.

Pension rights earned during the year

2008

2007

9 155 254

5 994 334

Interest expence on earned pension rights

723 349

373 284

Yield pension cost

-579 383

-399 213

Estimate change

2 872 420

1 792 418

Net pension cost

12 171 640

7 760 823

2008

2007

Assets/obligations Pension benifits obligations Plan assets Estimate change Net pension liability Financial assumptions

2008

2007

Asset retirement obligation

497 390 299

395 378 365

Other long-term provisions

219 784 464

53 078 539

717 174 763

448 456 904

Other provisions

Asset retirement obligation. In accordance with license concession terms of the Production licenses which the company hold, the Norwegian State can take over the installations free of charge when the production ends or when the license expires. Alternatively the State can require the installations to be removed. In addition to provisions for future abandonment cost there has been made provisions for future removal costs regarding plugging and securing of production wells. The accretion expense is classified as operating expenses. 2008

2007

Asset retirement obligations at January 1

395 378 366

326 492 144

Liabilities incurred / revision in estimates

80 593 211

55 035 611

Accretion expense

21 418 723

13 850 610

Asset retirement obligations at December 31

497 390 299

395 378 365

207 226 711

197 775 684

37 879 769

15 228 414

-15 025 000

-8 574 767

-2 801 099

Long-lived assets related to removal and abandonment at January 1

22 854 769

3 852 548

Net assets incurred / revision in estimates

80 593 211

55 035 611

Depreciation

-41 557 469

-45 584 584

246 262 452

207 226 711

2008

2007

Discount rate

4.25%

4.75%

Expected increase in salaries

4.50%

Expected increase in pensions

2.00%

Expected increase in basis for calculating government contributions

4.25%

Expected return on plan assets

6.30%

5.75%

Long-lived assets related to removal and abandonment at December 31 Assets related to removal and abandonment is also included in note 7.

Drilling obligations. The company, together with its license partners, is committed to take part in the drilling of wells in accordance with the license agreements. Other obligations. During the normal course of its business, the company is involved in unresolved outstanding claims. The ultimate liability in respect of litigation and claims can not be determined at this time. GDF SUEZ E&P Norge does not expect that either the financial position, results of operations, nor cash flows will be materially affected in an adverse way by the resolutions of these legal proceedings.

07 Tangible fixed assets Producing assets and -equipment Acqusition cost 01.01.08 Acquired during the year Disposal during the year

Installations under construction

Capitalized exploration cost

Equipment etc.

Total

9 925 138 176

1 899 970 317

647 518 722

3 091 878 853

35 577 600

439 768 318

12 300 454 411

41 481 547

169 956 038

3 950 835 160

5 870 915

10 566 785 983

4 991 849 170

77 059 147

609 724 356

16 245 418 656

Acc.Depreciation 21.12.08

2 359 212 421

19 787 271

2 378 999 692

Book Value as of 31.12.08

8 207 573 562

4 991 849 170

57 271 876

609 724 356

13 866 418 964

838 889 425

8 749 597

847 639 022

Acqusition cost 31.12.08

Actual depreciation Estimated usefull life

* Depreciation according to Unit of Production method

5-10 years

Contractual obligations in thousand NOK

2009

Thereafter

Total

Obligations entered

2 929

2 457

5 386

The contractual obligations include the acquisition and construction of assets in licenses where the company has ownership interests.

09 Other receivables and inter-company balances The company has entered into an agreement with the parent company regarding financing. The loan is stated in NOK with floating interest. The inter-company balance as of 31.12.08 was NOK 8 197 900 576 (31.12.2007: NOK 5 936 634 467). Interest expenses on this loan in 2008 was NOK 472 693 553, wheras NOK 124 067 085 are capitalized (2007: NOK 240 398 577). There was also as of 31.12.08 a short term receivable toward the parent company of NOK 1 520 248 157 (2007: NOK 202 913 776).

Notes

46+47

06 Pensions

08 Other provisions and obligations

Pension rights earned during the year

2008

2007

9 155 254

5 994 334

Interest expence on earned pension rights

723 349

373 284

Yield pension cost

-579 383

-399 213

Estimate change

2 872 420

1 792 418

Net pension cost

12 171 640

7 760 823

2008

2007

Assets/obligations Pension benifits obligations Plan assets Estimate change Net pension liability Financial assumptions

2008

2007

Asset retirement obligation

497 390 299

395 378 365

Other long-term provisions

219 784 464

53 078 539

717 174 763

448 456 904

Other provisions

2007

Asset retirement obligations at January 1

395 378 366

326 492 144

Liabilities incurred / revision in estimates

80 593 211

55 035 611

Accretion expense

21 418 723

13 850 610

Asset retirement obligations at December 31

497 390 299

395 378 365

207 226 711

197 775 684

37 879 769

15 228 414

-15 025 000

-8 574 767

-2 801 099

Long-lived assets related to removal and abandonment at January 1

22 854 769

3 852 548

Net assets incurred / revision in estimates

80 593 211

55 035 611

Depreciation

-41 557 469

-45 584 584

246 262 452

207 226 711

2008

2007

Discount rate

4.25%

4.75%

Expected increase in salaries

4.50%

Expected increase in pensions

2.00%

Expected increase in basis for calculating government contributions

4.25%

Expected return on plan assets

6.30%

5.75%

Long-lived assets related to removal and abandonment at December 31 Assets related to removal and abandonment is also included in note 7.

07 Tangible fixed assets Producing assets and -equipment Acqusition cost 01.01.08 Acquired during the year Disposal during the year

Installations under construction

Capitalized exploration cost

Equipment etc.

Total

9 925 138 176

1 899 970 317

647 518 722

3 091 878 853

35 577 600

439 768 318

12 300 454 411

41 481 547

169 956 038

3 950 835 160

5 870 915

10 566 785 983

4 991 849 170

77 059 147

609 724 356

16 245 418 656

Acc.Depreciation 21.12.08

2 359 212 421

19 787 271

2 378 999 692

Book Value as of 31.12.08

8 207 573 562

4 991 849 170

57 271 876

609 724 356

13 866 418 964

838 889 425

8 749 597

847 639 022

Acqusition cost 31.12.08

Actual depreciation Estimated usefull life

* Depreciation according to Unit of Production method

5-10 years

Contractual obligations in thousand NOK

2009

Thereafter

Total

Obligations entered

2 929

2 457

5 386

The contractual obligations include the acquisition and construction of assets in licenses where the company has ownership interests.

Notes

48+49

10 Drilling equipment and spare parts

2008

2007

Ordinary profit before tax

2 356 108 420

323 809 724

Marginal tax 78%

1 837 764 568

252 571 585

-597 511 673

-428 561 958

-47 634 665

-68 880 527

Reconciliation of tax expense and calculated tax expense:

Spare parts and drilling equipment are valued at the lowest of cost or market value. Cost is estimated using FIFO-method.

Uplift 2008

Drilling and well equipment

9 294 939

2007 3 470 719

Spare parts

24 833 900

8 101 600

Total Inventories

34 128 839

11 572 319

Interest gain/loss on carry forward Other permanent differences Limited deduction of financial expenses Adjustments from previous years Tax expense

91 774 333

36 737 287

-228 106 498

60 523 561

32 202 855

-37 021 908

1 088 488 920

-184 631 960

The tax loss can be carried forward indefinitely.

11 Taxes 2008

2007

12 Equity

Specification of the tax expense for the year: Change in deferred tax Tax effect of pension booked over equity Tax refund exploration expenses Excessive tax provision previous years Total tax expense

1 057 050 330

117 747 569

14 285 900

-302 112 388

17 152 690

-267 141

1 088 488 920

-184 631 960

Permanent differences

2 356 108 420

141 500 000

1 273 500 000

Other equity

Pension Exstra ordinary dividend 2007 Dividend 2008 141 500 000

1 273 500 000

69 553 863

47 099 087

-1 334 328 060

-1 600 587 500

Basis ordinary income tax

1 091 334 223

-1 229 678 689

-382 240 021

121 047 122

-2 671 156

74 614 045

1 701 252 246

3 116 252 246

1 267 619 500

-4 029 357

-1 100 021 000

-1 400 850 000

463 971 389

1 878 971 389

13 Share capital and shareholder information

Uplift

-823 314 526

-576 337 536

Basis special petroleum tax

-116 891 480

-1 610 355 058

The share capital consists of 141 500 shares with nominal value NOK 1 000. All shares are held by the parent company, GDF SUEZ E&P International SAS. The parent company, GDF SUEZ E&P International SAS. with its headoffice in Paris, issues consolidated statements which include GDF SUEZ E&P Norge AS.

7 859 099 640

6 651 553 680

14 Reserves (unaudited)

Limited capitalization of interest on development projects

Total

323 809 724

Changes in temporary differences Limited deduction of financial expenses for tax purposes

Share premium reserve

Current year`s profit

Equity 31.12.08

The basis for calculating income taxes: Ordinary profit before tax

Equity 31.12.07

Share capital

Specification of basis for deferred tax: Differences that are netted: Fixed assets Net pension liability Crude oil inventory Gain and loss account Tax loss to be carried forward Asset retirement obligations Basis ordinary income tax (28%) Limited capitalization of interest on development projects Tax loss to be carried forward (28% only) Unused uplift Basis special petroleum tax (50%)

-22 854 769

-3 852 548

6 566 255

12 450 006

33 609 400

42 011 751

-1 449 496 978

-2 482 970 301

-212 353 290

-373 650 406 3 845 542 182

6 214 570 258 -71 942 889

-74 614 045

-185 893 071

203 337 878

-4 238 559 395

-3 043 536 050

1 718 174 903

930 729 965

Special petroleum tax (50%) Total deferred tax

Oil (MSm3)

Gas (MSm3)

NGL (MSm3)

Condensate (MSm3)

Njord

0.45

1.72

0.81

Fram

1.62

1.2

0.02

18.97

1.41

2.1

3.33

9.79

3.22

1.1

0.11

0.37

Snøhvit Gjøa Vega sør

31 december 2008 / 24 march 2009

Deferred Tax Liability: Ordinary income tax (28%)

According to reserve information published by the Norwegian Petroleum Directorate the company’s share of remaining reserves are:

1 740 079 672

1 076 751 811

859 087 452

465 364 983

2 599 167 124

1 542 116 794 Jean-Marie Jacques Dauger Chairman of the board

Marie Michel Bayle Board member

Valérie Duval Board member

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Arild Jåsund Employee elected representative

Anne Svendsen Employee elected representative

Terje Overvik Managing director

Notes

48+49

10 Drilling equipment and spare parts

2008

2007

Ordinary profit before tax

2 356 108 420

323 809 724

Marginal tax 78%

1 837 764 568

252 571 585

-597 511 673

-428 561 958

-47 634 665

-68 880 527

Reconciliation of tax expense and calculated tax expense:

Spare parts and drilling equipment are valued at the lowest of cost or market value. Cost is estimated using FIFO-method.

Uplift 2008

Drilling and well equipment

9 294 939

2007 3 470 719

Spare parts

24 833 900

8 101 600

Total Inventories

34 128 839

11 572 319

Interest gain/loss on carry forward Other permanent differences Limited deduction of financial expenses Adjustments from previous years Tax expense

91 774 333

36 737 287

-228 106 498

60 523 561

32 202 855

-37 021 908

1 088 488 920

-184 631 960

The tax loss can be carried forward indefinitely.

11 Taxes 2008

2007

12 Equity

Specification of the tax expense for the year: Change in deferred tax Tax effect of pension booked over equity Tax refund exploration expenses Excessive tax provision previous years Total tax expense

1 057 050 330

117 747 569

14 285 900

-302 112 388

17 152 690

-267 141

1 088 488 920

-184 631 960

Permanent differences

2 356 108 420

141 500 000

1 273 500 000

Other equity

Pension Exstra ordinary dividend 2007 Dividend 2008 141 500 000

1 273 500 000

69 553 863

47 099 087

-1 334 328 060

-1 600 587 500

Basis ordinary income tax

1 091 334 223

-1 229 678 689

-382 240 021

121 047 122

-2 671 156

74 614 045

1 701 252 246

3 116 252 246

1 267 619 500

-4 029 357

-1 100 021 000

-1 400 850 000

463 971 389

1 878 971 389

13 Share capital and shareholder information

Uplift

-823 314 526

-576 337 536

Basis special petroleum tax

-116 891 480

-1 610 355 058

7 859 099 640

6 651 553 680

14 Reserves (unaudited)

Limited capitalization of interest on development projects

Total

323 809 724

Changes in temporary differences Limited deduction of financial expenses for tax purposes

Share premium reserve

Current year`s profit

Equity 31.12.08

The basis for calculating income taxes: Ordinary profit before tax

Equity 31.12.07

Share capital

-22 854 769

-3 852 548

6 566 255

12 450 006

33 609 400

42 011 751

-1 449 496 978

-2 482 970 301

-212 353 290

-373 650 406 3 845 542 182

6 214 570 258 -71 942 889

-74 614 045

-185 893 071

203 337 878

-4 238 559 395

-3 043 536 050

1 718 174 903

930 729 965

Special petroleum tax (50%) Total deferred tax

Oil (MSm3)

Gas (MSm3)

NGL (MSm3)

Condensate (MSm3)

Njord

0.45

1.72

0.81

Fram

1.62

1.2

0.02

18.97

1.41

2.1

3.33

9.79

3.22

1.1

0.11

0.37

Snøhvit Gjøa Vega sør

31 december 2008 / 24 march 2009

Deferred Tax Liability: Ordinary income tax (28%)

According to reserve information published by the Norwegian Petroleum Directorate the company’s share of remaining reserves are:

1 740 079 672

1 076 751 811

859 087 452

465 364 983

2 599 167 124

1 542 116 794 Jean-Marie Jacques Dauger Chairman of the board

Marie Michel Bayle Board member

Valérie Duval Board member

Rolf Erik Rolfsen Board member

Didier Holleaux Board member

Arild Jåsund Employee elected representative

Anne Svendsen Employee elected representative

Terje Overvik Managing director

Auditor’s report We have audited the annual financial statements of GDF SUEZ E&P Norge AS as of 31 December 2008, showing a profit of NOK 1 267 619 500. We have also audited the information in the Directors’ report concerning the financial statements, the going concern assumption, and the proposal for the allocation of the profit. The financial statements comprise the balance sheet, the statements of income and cash flows and the accompanying notes. The regulations of the Accounting Act and accounting standards, principles and practices generally accepted in Norway have been applied in the preparation of the financial statements. These financial statements and the Directors’ report are the responsibility of the Company’s Board of Directors and Managing Director. Our responsibility is to express an opinion on these financial statements and on other information according to the requirements of the Norwegian Act on Auditing and Auditors. We conducted our audit in accordance with laws, regulations and auditing standards and practices generally accepted in Norway, including the auditing standards adopted by the Norwegian Institute of Public Accountants. Those standards and practices require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. To the extent required by law and auditing standards, an audit also comprises a review of the management of the Company’s

financial affairs and its accounting and internal control systems. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements have been prepared in accordance with laws and regulations and present fairly, in all material respects the financial position of the Company as of 31 December 2008, and the results of its operations and its cash flows for the year then ended, in accordance with accounting standards, principles and practices generally accepted in Norway the Company’s management has fulfilled its duty to properly record and document the Company’s accounting information as required by law and generally accepted bookkeeping practice in Norway the information in the Directors’ report concerning the financial statements, the going concern assumption, and the proposal for the allocation of the profit is consistent with the financial statements and comply with law and regulations.

Stavanger, 24 March 2009 ERNST & YOUNG AS

Tor Inge Skjellevik State Authorised Public Accountant (Norway)

contents

miSSiON AND ViSiON

AcTiViTiES

SUSTAiNABLE DEVELOPmENT

kEy FiGURES 2001-2008

GjøA DEVELOPmENT

cOmmUNiTy RELATiONS

mANAGiNG DiREcTOR’S STATEmENT

GjøA PRE-OPERATiONS

OUR TEAm

GDF SUEZ E&P NORGE AS

SNøhViT AND ThE BARENTS SEA

DiREcTORS’ REPORT

GDF SUEZ ExPLORATiON AND PRODUcTiON

ThE NORwEGiAN SEA

ANNUAL AccOUNTS

GDF SUEZ GROUP

ThE NORTh SEA

AUDiTOR’S REPORT

GDF SUEZ mERGER

Note: The translation to English has been prepared for information purposes only.

Stavanger, 24 March 2009 ERNST & YOUNG AS

Tor Inge Skjellevik State Authorised Public Accountant (Norway)

contents

miSSiON AND ViSiON

AcTiViTiES

SUSTAiNABLE DEVELOPmENT

kEy FiGURES 2001-2008

GjøA DEVELOPmENT

cOmmUNiTy RELATiONS

mANAGiNG DiREcTOR’S STATEmENT

GjøA PRE-OPERATiONS

OUR TEAm

GDF SUEZ E&P NORGE AS

SNøhViT AND ThE BARENTS SEA

DiREcTORS’ REPORT

GDF SUEZ ExPLORATiON AND PRODUcTiON

ThE NORwEGiAN SEA

ANNUAL AccOUNTS

GDF SUEZ GROUP

ThE NORTh SEA

AUDiTOR’S REPORT

GDF SUEZ mERGER

Note: The translation to English has been prepared for information purposes only.

Annual Report

GDF SUEZ e&P Norge AS

GDF SUEZ e&P Norge AS Vestre Svanholmen 6, 4313 Sandnes P.O.Box 242, 4066 Stavanger Tel: +47 52 03 10 00 Fax: +47 52 03 10 01

2008

ANNUAL REPORT

GDF SUEZ E&P Norge AS