GDF SUEZ E&P Norge - Annual report 2013 by procontra

GDF SUEZ E&P Norge AS | Annual report 2013

Contents 03 04 05 06 11 14 16 20 24 28 30 32 34 38 40 50 56 68 70 72

MISSION AND VISION HIGHLIGHTS 2013 MANAGEMENT TEAM MANAGING DIRECTOR’S REPORT GDF SUEZ E&P NORGE ACTIVITIES GJØA THE NORTH SEA THE NORWEGIAN SEA BARENTS SEA SNØHVIT GREENLAND SUSTAINABLE DEVELOPMENT COMMUNITY RELATIONS OUR TEAM BOARD OF DIRECTORS’ REPORT ANNUAL ACCOUNTS AUDITOR’S REPORT GDF SUEZ E&P INTERNATIONAL GDF SUEZ GROUP

Mission and vision GDF SUEZ E&P Norge AS will: â&#x20AC;˘ Create value along the value chain by exploring for, developing, producing and transporting oil and gas on the Norwegian Continental Shelf. â&#x20AC;˘ 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.

24,0

25,0

22,0

11,3

13,7

4,2

10,8

4,0

3,3

2,7

4,8

1,2

2,6

1 291

1 556

754

1 086

623

1 268

467

508

264

366

-34

11 075

9 950

11 832

3 973

4 960

1 612

4 193

1 487

1 367

529

1 266

294

502

Year 2013 Key figures

01 02 03 04 05 06 07 08 09 10 11 12 13

Turnover

Net result

Oil & gas

Results 2013: 11 075 MNOK

Results 2013: 1 556 MNOK

Results 2013: 24 millions FOE

• GDF SUEZ E&P Norge AS was established in 2001. • At year end 2013 GDF SUEZ E&P Norge AS had a portfolio of 57 licenses on the Norwegian shelf. • GDF SUEZ E&P Norge AS produced 24.2 million barrels of oil equivalents in 2013. • The company delivered more than 47% of the total production from the E&P division of the GDF SUEZ group. • The company had 256 employees at year end. • The GDF SUEZ group had 147 200 employees worldwide in 2013.

2 421

2 297

2 328

2 358

1 963

3 116

1 879

2 140

2 607

893

1 472

216

671

310

604

494

536

528

654

335

126

204

2 352

2 800

2 721

3 048

4 580

2 844

3 864

1 712

2 310

1 327

1 992

838

969

01 02 03 04 05 06 07 08 09 10 11 12 13

Investments

Exploration cost

Equity 31.12.

Results 2013: 2 352 MNOK

Results 2013: 604 MNOK

Results 2013: 2 297 MNOK

Year 2013 Highlights

NJORD PL701 PL700

PL723

NJORD PL701

PL612

PL722

PL700 PL687 PL610

PL686

PL715

PL607

PL709 PL230

GJØA PL710

SNØHVIT

APA 2012 awards

New operating model on Gjøa

Barents Sea awards

GDF SUEZ E&P Norge was awarded two licenses in the Norwegian Sea through PL687 Awards in Predefined Areas (APA) 2012 (PL701 and 700) and two in the North Sea PL686 (PL686 and 687).

In order to secure core expertise, create an environment for growth and to ensure efficient operations, contracted operations personell on Gjøa were offered employment with GDF SUEZ from 1 February 2013. 49 new employees joined the company.

Through the 22nd licensing round, GDF SUEZ E&P Norge was awarded five new licenses, including two operatorships (PL722 and 723) in the Barents Sea.

GJØA

Gudrun project near completion

Discovery in Snilehorn

Topside installation on the Gudrun platform was completed in the summer of 2013. Hook-up and commissioning commenced at the end of the year.

In November 2013, a discovery in the Snilehorn prospect (PL348B) was announced. GDF SUEZ E&P Norge holds 20% in the discovery.

Year 2013 Management team

Management team

Managing Director Maria Moræus Hanssen

Chief Financial Officer Johannes Finborud

Deputy Managing Director Geir Pettersen

Head of HSEQ Eva Fagernes

Head of Exploration Tina R. Olsen

Head of Human Resources Magnar Støle

Head of Communication Ulf Rosenberg

Head of Asset Mike Robertson

Head of Business Development & Commercial Eric Robial

Head of Operations Hilde Ådland

Year 2013 Managing Director's report

“A great year for GDF SUEZ E&P Norge” Maria Moræus Hanssen does not beat around the bush: “I am taking over a company that is doing very well. This is both reassuring and demanding, since it will be a challenge to maintain this success going forward.” Moræus Hanssen took up her position as of 1 January 2014. She sums up the reasons why 2013 became such a good year: “The Gjøa field, which we are operating, had good regularity and operations. Over time we have managed to increase the processing capacity on the platform, thereby increasing our gas deliveries. That is the main reason why we succeeded in meeting our production targets in spite of the operations

challenges at Snøhvit and the shutdown at Njord.” The Gjøa success is due to both technical and human factors: “The reservoirs give better production rates than we had originally expected. The plant capacity is a little higher than indicated in the design. We also manage to maintain high regularity in the plant, thanks to an excellent operations organisation both on board and on land.” Now comes the big challenge,

however: “We mustn’t rest on our laurels, but focus every day on safe operations, high regularity and reduced costs.” Early in 2013, the New Operating Model project was implemented in the Gjøa operations organisation. Personnel working in operations and maintenance who previously had been employed by a contractor, were offered permanent employment with the operator, GDF SUEZ. This has secured the company the core expertise necessary for the safe

and efficient operation of Gjøa in the future. “Going forward, we need to focus our attention on what will happen when the Gjøa and Vega reservoirs slow down production in earnest. How can we ensure long-term utilisation of the facilities at Gjøa?” Moræus Hanssen asks, and then proceeds to give her answer: “The authorities have challenged the operators of discoveries and fields in the Gjøa area, the so-called Quadrant 35, to coordinate. An area forum was established under GDF SUEZ’ leadership during this first year. We have achieved cooperation and openness across the licenses, and the authorities and the industry have taken note. The companies have sat down together to look at what might be the optimal area development. For GDF SUEZ, the agenda is clear: it is important to make the best possible use of our factory in the sea, thereby keeping production costs per barrel low and competitive. To begin with, however, the road goes through open exchanges and cooperation. We have assumed responsibility and got the work off to a good start.” A key activity in 2013 was to get a better understanding of

Year 2013 Managing Director's report

the potential in the Gjøa license (PL153). The result of the P8 segment exploration well was disappointing. “We must continue the work of uncovering the total resource potential in this area,” says Moræus Hanssen. GDF SUEZ has worked to obtain new acreage in the Barents Sea. In the 22nd licensing round, which was announced in June 2013, the company was awarded five new licenses and was made the

operator of two of them. “The Barents Sea is an exciting area, and we are very happy with these awards. Now the company has an interesting exploration portfolio in the Barents Sea, both as operator and partner,” says Moræus Hanssen. She recognises the challenges: "As drilling stretches further north, we see operations becoming more and more challenging. We will need time with the rest of the industry to

find operating models that work. I see no reason why we should not be involved in and take on such tasks. But then we also need to admit that even if we succeed with exploration in this area in the near future, the road to possible development and production will be a long one,” says Moræus Hanssen. As a partner in Snøhvit since 2001, GDF SUEZ has already been involved in a major development in the Barents Sea and has production there: “For Snøhvit, 2013 has been a year of level-headed optimism with regard to capacity and uptime for the operations facilities. We have had long periods of stable operations, and that is encouraging. But we still see challenges in reaching the full potential for the LNG plant. Our role in the Barents Sea also requires us to be involved in deciding the long-term gas transport solution for the Barents Sea – a process where we will assume an active ownership to both the discussions and the final decision,” says Moræus Hanssen. “In general we believe better information on the resource base is needed before a final solution is chosen for gas transport from the Barents Sea.” GDF SUEZ has a considerable portfolio as a partner in fields where Statoil is the operator. “One of the fields which we have done most work on in-house last year, is the Gudrun

development. Start-up was planned for the first quarter of 2014. It has been an unusual situation, since we were the sole partner in the Gudrun license until recently. It means we have had to take our regulatory duty to supervise particularly seriously, while working closely and successfully with the operator of the project. We reached some important milestones last year, especially when the deck with the process unit was installed offshore over the summer." Moræus Hanssen is pleased that GDF SUEZ is a co-owner of Gudrun – particularly in a year when the cost level in the oil industry has received so much attention. The company is a partner in a Gudrun project which seems capable of delivering on time and on budget, even though the model is demanding, with fabrication in Thailand and Poland and assembly in Haugesund. All this has been successfully accomplished – at a time when many other projects suffer cost overruns and delays. “While we have fields in the start-up phase, we have also discovered the challenges of tail production. On Njord, structural problems were uncovered in the platform. The license grasped the nettle and took the necessary steps. So Njord can serve as an example of how the industry does not compromise safety: production was shut down immediately in order to carry out the necessary measures,” Moræus Hanssen points out.

Year 2013 Managing Director's report

Production is planned to resume in July 2014. Major decisions will be taken in the course of this year as to how the Njord field and nearby discoveries should be run and developed from now on, and these decisions might involve considerable new investments. GDF SUEZ owns 40 per cent of Njord and has interests in important licenses in the surrounding area. Then one must also assume special responsibility for good stewardship of the values: “It is very

gratifying that we were involved in finding Snilehorn. The well was drilled in the autumn of 2013 and proved a considerable oil discovery which might be tied in to Njord or Hyme." Moræus Hanssen describes the main challenge for the company going forward: “To replace the oil and gas that is being produced with new, profitable reserves. In spite of the promising Snilehorn discovery, we see a challenge in the medium-long term: We have

not managed to identify enough opportunities in our portfolio to soften the coming fall in production. In the time ahead, we need to focus on maturing exploration opportunities. We must also look at opportunities to swap exploration acreage with other companies in order to increase our opportunities and mitigate risks.” At the same time, the company is focused on long-term growth: “We have nominated blocks for the 23rd licensing round, and we participate in the group of companies that will collect new seismic data in the Barents Sea Southeast area in 2014.” “GDF SUEZ has been successful on the Norwegian shelf. The company has a position that many will envy us. It will be hard work to keep growing – in fact, it will be a major job just to soften the fall in production. We must focus our attention on creating values and make the most out of the position we have gained. We will retain a strong position on the NCS. We handle a major part of the Group’s oil and gas production and reserves. Our company creates great value for the shareholders and not least the Norwegian state in the form of taxes and fees. We have a large, competent and loyal organisation that will take up the challenge of creating new business opportunities,” says Moræus Hanssen. As an operating company on the NCS, we also have a special

responsibility to follow up the need for cost reductions in the oil and gas industry. “We have seen how the advantage of a high oil price has been eaten up by a strong cost increase,” says Moræus Hanssen. She believes the main tracks for increased productivity must head towards standardised development solutions combined with increased research and development efforts in improved recovery. “Together we can do it. We are around 270 employees who have said in repeated surveys that we have a good working environment – in other words, a motivated organisation that is able to continue safe and successful operations.”

GDF SUEZ E&P Norge Our history in Norway

Our history in Norway Production licenses Exploration licenses North Sea

License portofolio growth GDF SUEZ E&P Norge AS

Exploration licenses Norwegian Sea Exploration licenses Barents Sea

PL110B Area F PL110B Area F Area F

PL285 PL107

PL347 PL348 PL329 PL328 PL285 PL107

PL347 PL348 PL329 PL328 PL107

PL289 PL090C PL090B PL311B PL311 PL153 PL187 PL025

PL153 PL187 PL025 PL174 PL191 PL006C

PL311B PL311 PL153 PL187 PL025

Gjøa Fram Gudrun Snøhvit Njord

Vega Sør Gjøa Fram Gudrun Snøhvit Njord

2001

2003

2004

2005

• Gaz de France Norge established with office in Stavanger • Purchase of shares in the Snøhvit and Njord fields • Official opening of the company at the Norwegian Petroleum Museum

• Acquisition of Gjøa from Norsk Hydro • Pre-qualification as operator in Norway • Production start-up on Fram West • Acquisition of 15% in Area F in the Barents Sea from Amerada Hess

• Gjøa transaction and joint operatorship with Statoil approved by the authorities • Award of PL328 and PL329 in the 18th licensing round • Award of PL347, PL348, PL311B and PL110B in APA 2004

PL187 PL025 PL174 PL191 PL006C PL006C Fram Gudrun Snøhvit Njord

Snøhvit Njord

2002 • Parliamentary approval of the Snøhvit plan for development and operation (PDO) • Acquisition of 15% in Fram from the State's Direct Financial Interest (SDFI) • Award of PL285 in the 17th licensing round • Acquisition of 12.5% in Gudrun discovery from BP

• Plan for development and operation (PDO) for Njord gas export approved by the authorities • PDO Fram East approved by the authorities • Award of PL090D and PL376 in APA 2005 • Astero discovery in Fram PL090B license, the first discovery in Norway for Gaz de France

GDF SUEZ E&P Norge Our history in Norway

Production licenses Exploration licenses North Sea

PL394 PL110C Area F PL110B PL347 PL348 PL329 PL328 PL107

PL448 PL394 PL110C Area F PL110B

PL347 PL348 PL329 PL328 PL107

PL448B PL488 PL448 PL394 PL110C PL230 PL110B PL469 PL348 PL329 PL328 PL107

PL530 PL448B PL488 PL448 PL394 PL110C PL230 PL110B

PL326 PL107B PL107C PL469 PL348 PL328 PL107

PL090D PL289 PL090C PL090B PL376 PL311B PL311 PL153 PL187 PL025

PL423S PL090D PL289 PL090C PL090B PL376 PL153 PL187 PL025

PL153B PL423S PL090D PL289 PL090C PL090B PL376 PL153 PL187 PL025

PL377S PL153B PL423S PL090D PL289 PL090C PL090B PL376 PL153 PL187 PL025

Vega Sør Gjøa Fram Gudrun Snøhvit Njord

2006

2007

2008

2009

• Award of PL110C and PL394 in the 19th licensing round • Successful appraisal wells on Gudrun (North Sea), Tornerose (Barents Sea) and Astero (Fram area) • PDOs for Gjøa and Fram B approved by the license partners and submitted to the authorities

Exploration licenses Norwegian Sea Exploration licenses Barents Sea

• Snøhvit wells are opened, the LNG plant at Melkøya starts receiving hydrocarbons, and the plant exports its first cargo of LNG • The Njord and Fram fields export first gas • Seismic vessel Geowave Master acquires a 3D seismic survey for PL423S for Gaz de France Norge • Plan for development and operation (PDO) of the Gjøa field approved by Norwegian authorities • APA 2006 – award of exploration operatorship PL423S in the North Sea

• Gaz de France merges with SUEZ to become GDF SUEZ • Gaz de France exports its first cargo of LNG from Melkøya in March • APA 2007 – award of exploration operatorship PL469 in the Norwegian Sea • Yearly production doubled to 10.8 million boe • Gudrun concept selection

• Acquisition of 10% in the exploration license PL326 (Gro) from Norske Shell. Gas discovery made in June • 20th round – award of exploration operatorship; PL530 in the Barents Sea • APA 2008 – award of equity in Norwegian Sea production licenses PL107B and PL107C • Gaz de France Norge changes its name to GDF SUEZ E&P Norge • Gjøa project reached 73% completion at year-end

PL530 PL448B PL488 PL448 PL394 PL110C PL230 PL110B

PL468 PL326 PL107B PL107C PL469 PL348 PL328

PL612 PL610 PL607 PL530 PL448B PL488 PL448 PL110C PL230 PL110B

PL612 PL610 PL607 PL530 PL448B PL448 PL110C PL230 PL110B

PL709 PL710 PL715 PL722 PL723 PL612 PL610 PL607 PL448 PL110C PL230 PL110B PL710 PL700 PL348B PL107B PL107C PL348

PL348B PL468B PL468 PL107B PL107C PL348

PL348B PL107B PL107C PL348

PL341 PL423BS PL547S PL377S PL153B PL423S PL289 PL153 PL187 PL025

PL582 PL578 PL377BS PL341 PL547S PL377S PL153B PL289 PL153 PL187 PL025

PL637 PL636 PL634 PL630 PL618 PL582 PL578 PL153B PL153 PL187 PL025

PL687 PL686 PL637 PL636 PL634 PL630 PL618 PL582 PL578 PL153B PL153 PL187 PL025

Gygrid Noatun Astero Vega Sør Gjøa Fram Gudrun Snøhvit Njord

Hyme Noatun Astero Vega Sør Gjøa Fram Gudrun Snøhvit Njord

2010

2011

2012

2013

• APA 2009 – award of equity in PL423 BS, PL090 E and PL547S, all in the North Sea • PL187 Brynhild – small oil and gas discovery in well 15/3-9T2 August 2010 • PL326 Gro – drilling of appraisal well 6604/10-1 • PL341 Stirby – acquisition of 10% from Spring Energy Norway. Drilling of well 24/12-6S • PL468 Dovregubben – acquisition of 5% • Transfer of operatorship for the Gjøa field and production start-up • Production start-up on Vega • The fully-owned subsidiary GDF SUEZ E&P Greenland AS established

• APA 2010: Two licenses in the North Sea, and three in the Norwegian Sea; PL578, PL582, PL377BS, PL348B and PL468B • 10-year anniversary for GDF SUEZ E&P Norge • Three Barents Sea operatorships awarded in the 21st licensing round; PL607, PL610 and PL612 • First Barents Sea operated exploration well drilled in PL530 (Heilo) • Acquired 20% additional ownership in Njord • First year of full operatorship of Gjøa. Safe and stable production throughout the year

• Two operatorships awarded in APA 2011 – PL636 and PL634, and partnership in PL618, PL630 and PL637 • Gjøa field development project concluded • First turnaround on Gjøa • 100 million boe produced since establishment in Norway in 2001 • Seismic acquisition in PL610 • Site surveys at PL153, PL636 and PL607

• Five new licenses including two operatorships (PL722 and 723) in the Barents Sea awarded through the 22nd licensing round. • P8 well on Gjøa safely drilled • New operating model on Gjøa to secure core expertise • Two licenses in the Norwegian Sea awarded through APA 2012 (PL701 and 700) and two in the North Sea (PL686 and 687) • 20% participation in the Snilehorn discovery in PL348B

Year 2013 Activities

Activities Focus areas

Gjøa

Gjøa area

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. Statoil was operator in the development phase while GDF SUEZ E&P Norge took over the operatorship at production start-up in November 2010.

The Gjøa area is proven as a prolific area of the North Sea and may still contain significant discoveries.

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 enables GDF SUEZ E&P Norge to build field development and operation competence, and prepare the organisation for future operatorships.

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.

GDF SUEZ E&P Norge has acquired additional exploration acreage in the Gjøa area.

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

Norwegian Sea The Norwegian Sea potentially holds large volumes of yet undiscovered resources. 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.

Snøhvit/ Barents Sea Snøhvit is the first LNG development project on the Norwegian Continental Shelf, with an expected yearly production of 4.3 million tons of LNG. 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.

Greenland GDF SUEZ E&P Greenland AS was established as an affiliated company to GDF SUEZ E&P Norge AS in October 2010. On 2 December 2010 GDF SUEZ E&P Greenland AS, Shell Kanumas A/S (operator), Statoil Greenland AS and NUNAOIL A/S were awarded two large exploration licenses in the Baffin Bay offshore West Greenland. Both licenses have been granted for a period of up to 10 years. During this period seismic investigations and subsurface evaluations will take place along with potential exploration drilling. The award of the Baffin Bay licenses represents a significant expansion of GDF SUEZ’s acreage in the highly prospective Arctic region.

Year 2013 Gjøa

1989

2003

30%

2010

Discovery by Norsk Hydro

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

interest owned by GDF SUEZ

Start-up of production 7 November and transfer of operatorship to GDF SUEZ 25 November

GJØA VEGA

FLORØ FLORØ

VEGA SOUTH

Location

GJØA

FLORØ

Located in blocks 35/9 and 36/7, Gjøa lies about 70 kilometres north of Troll and 60 kilometres off the Norwegian west coast.

Gjøa Excellent performance on Gjøa continues, with production above design capacity. The Gjøa field is located about 60 kilometres west of Florø and 70 kilometres north of the Troll field. The Gjøa platform has a design capacity for producing and exporting 87,000 barrels of oil and 17 million cubic metres of gas per day. Gas is exported directly through a spur line connecting to the British pipeline FLAGS to St. Fergus in Scotland, while oil is sent via the Troll II pipeline to the Mongstad refinery in Hordaland, Norway. The Gjøa installation consists of the production platform, Gjøa Semi, and five subsea production well templates. The Gjøa Semi is constructed and operated with the aim of utilising the best available technology for integrated operations, thereby expanding the scope of cooperation and

coordination between offshore and onshore staff. Gjøa is a semi-submersible platform which receives electric power from shore through a 100-km long subsea cable from Mongstad. The drilling programme of 11 wells in total for Gjøa was completed in July 2012. In addition to the Gjøa wells, the Statoil-operated Vega fields are connected to the Gjøa Semi for processing and export of gas and oil/condensate. The Vega Unit comprising PL090 and PL248 consists of the gas and oil/condensate fields Vega North, Vega Central and Vega South. In 2013, Gjøa’s production totalled 47.5 (14.2 GDF SUEZ

share) million barrels of oil equivalents, representing 58.7% of the affiliate’s total production. The production from the field was approximately 31% above the planned production due to increase in gas export capacity and delay in production start-up from Vega South. Early in January 2012, total oil production from Gjøa and Vega reached a record 90,686 bbl/d, showing that oil export above the design capacity 87,000 bbl/d is possible. In December 2012, the gas export capacity of 17 MSm3/d, equal to the platform design basis, was reached. Since then gas export capacity has been increased to 18.5 MSm3/d.

New operational model and good results In order to secure core expertise, create an environment for growth and to ensure efficient operations, a decision was made to offer the contracted operations personell on Gjøa employment with GDF SUEZ from 1 February 2013. This resulted in 49 new employees joining the company from February 2013.

Some restrictions on export capacity occurred in the 1st quarter of 2013 due to processing problems in the receiving facilities downstream Gjøa. This caused some deferment of gas export from Gjøa and Vega. The turnaround at St Fergus Gas Terminal was coordinated with one module in bypass mode, from 2 to 23 September.

The turnaround was, however, carried out with no restrictions on gas export from the Gjøa platform, which was a great achivement.

2013 saw drilling return to the Gjøa field with the drilling of the P8 well. This operation is further described in the North Sea Exploration chapter.

The overall results for Gjøa in 2013 are very good. There have been no serious incidents or accidents. The uptime/regularity of the Gjøa facilities has been excellent, resulting in record production.

During 2013 GDF SUEZ chaired the Area Forum Quadrant 35. This important committee of key operators in the Gjøa area was set up at the request of the Norwegian Petroleum Directorate (NPD), with the objective of

Året 2013

Gjøa

maximising the return from this area through cooperation and shared purpose. The report on the first year of the committee was presented to the NPD in October and was well received. The chair was transferred to Statoil in October 2013, but GDF SUEZ continues to complete study work associated with the use of Gjøa as a hub for future production from nearby fields.

Year 2013 The North Sea

1975

25%

2010

2014

The Gudrun field discovery

Interest held by GDF SUEZ E&P Norge

PDO approved

Start of production

Location

GJØA FRAM

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

GUDRUN

The North Sea The major Gudrun project was completed, and production started 7 April 2014. Gudrun Located some 55 kilometres north of Sleipner and in water depths around 110 metres, the Statoil-operated Gudrun field was discovered in 1975. The field contains both oil and gas in a reservoir with complex geology and high pressure and temperature (HP/HT). The Gudrun plan for development and operation (PDO) was approved by the Norwegian parliament in June 2010. The development concept consists of a processing platform tied back to the Sleipner field by separate oil and gas pipelines. Oil and condensate from Gudrun will be mixed with Sleipner liquids and transpor-

ted onshore to the Kårstø processing plant. The gas will be mixed with Sleipner gas before entering the Gasled system. Several key milestones have been reached since PDO approval: • The jacket was successfully installed offshore in August 2011 • The pipelaying operation was successfully completed during the summer of 2012, followed by tie-in operations during 2013 • Intensive construction work has been carried out in various locations around the

world, including Norway, Thailand and Poland. All the modules were assembled in Haugesund during the first half of 2013 and transported offshore to the Gudrun field during summer in 2013. • Drilling operations started in September 2011 and will continue through 2016 with a minimum of seven wells to be drilled, including the production well for Gudrun East, a near-by discovery made in 2010 which was sanctionned for development in November 2013. It consists of a single well to be drilled and tied in to the Gudrun platform. • Topside installation was

completed in the summer of 2013 • Hook-up and commissioning commenced in late 2013. Fram Production from the Fram field continues at a high level and contributed a total of 2.9 million barrels of oil equivalents in 2013, representing 12% of the affiliate’s total production. Fram field performance has for many years been better than expected and has provided additional reserves. Fram production is constrained by the processing capacity at Troll C. The operator of Fram is Statoil.

H-North The PL090 and PL248 licenses decided in July 2012 to develop the H-North discovery as a single well subsea tie-in to Fram West. GDF SUEZ equity in H-North is 10.8%. Estimated reserves are nine million barrels of oil equivalents, and the project is on schedule for production start-up in the summer of 2014. Vega Vega is located some 10 km north-northwest of the Fram

field in block 35/11. The development comprises three subsea structures (Vega North, Vega Central and Vega South), with two production wells in each, tied back to the Gjøa platform. The Vega fields started production 2 December 2010. Due to lower productivity than expected, the Vega South wells were shut down during 2012. A redrill of Vega South producer R-14 started late in 2013 and production started in January 2014. In 2013 the Vega Unit produced a total of 1.1 million barrels of oil

equivalents, representing 4.5% of the total GDF SUEZ production. GDF SUEZ holds a 5.475% interest in the Vega Unit. North Sea Exploration The Gjøa-Fram and Gudrun areas remain core areas for GDF SUEZ E&P Norge and exploration to expand our portfolio in these areas has continued. In January 2013 GDF SUEZ E&P Norge was awarded two new licenses, PL686 and

PL687 located to the northeast of the Gjøa field in the North Sea, both with a role as a partner and 20% equity in APA 2012. In license PL686 the work commitment is to reprocess 3D seismic data, perform geological and geophysical studies, consider acquisition of electromagnetic (EM) data and decide to drill or drop the license within two years from award. The work commitment in license PL687 is to acquire new 3D seismic data and consider reprocessing 3D seismic, undertake

Year 2013 The North Sea

The Gudrun deck was installed in July 2013.

geological and geophysical studies and decide to drill or drop the license within three years from award. The 3D seismic survey will be acquired in 2014. In January 2014, GDF SUEZ E&P Norge was awarded a 20% share and partnership in PL637B. This license constitutes additional acreage to PL637 and carries the same work commitment. Extended deadlines of the drill or drop decisions by six months and one year for the PL637 and

PL578 licenses respectively were approved by the Norwegian authorities. In the autumn of 2013, GDF SUEZ E&P Norge as operator of PL153 with a 30% equity interest, drilled exploration well 35/9-9. The prospect named GjĂ¸a P8 is located about eight kilometres west of the GjĂ¸a field. The drilling operation was carried out by the Transocean Barents rig. The primary exploration target for the well was to prove petroleum in reservoir rocks in the Upper

Jurassic (the Viking Group). The secondary exploration target was to prove petroleum in reservoir rocks from the Middle Jurassic Age (the Brent Group). The well encountered reservoir rocks in the Viking and Brent Groups, with reservoir quality as expected. The well is classified as dry, with traces of hydrocarbons. In license PL582 operated by RWE Dea, and PL634 operated by GDF SUEZ, decisions were made to relinquish both licenses.

Year 2013 The Norwegian Sea

1997

2001

40%

2007

Production start-up on Njord

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

Interest held by GDF SUEZ in the Njord field

Start-up of the Njord Gas Export Project

Location NJORD

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

The Norwegian Sea GDF SUEZ holds 20% in the Snilehorn discovery, which was announced in November.

The Snilehorn prospect in PL348B, where GDF SUEZ E&P Norge holds 20%, is located 15 km northeast of the Njord field and four km west of the Hyme field in the Norwegian Sea. Wildcat well 6407/8-6 proved oil in Lower Jurassic reservoir rocks. Well 6407/8-6A was drilled as a side track to delineate the discovery. These wells are the first exploration wells in production license 348B awarded in APA

2010. The two wells confirmed the oil column in Lower Jurassic reservoir rocks. The size of the discovery is between nine and 16 million standard cubic meters (Sm3) of recoverable oil. In January 2013, GDF SUEZ E&P Norge was awarded two new licenses in the Norwegian Sea through the APA 2012 Licensing Round, with a role as a partner. In license PL700, GDF SUEZ E&P Norge was

awarded a 20% share. The work programme is to reprocess 3D seismic and/or acquire new 3D seismic data and to decide to drill or drop the license within three years from award. A 3D seismic survey of 330 km2 was acquired summer 2013. GDF SUEZ E&P Norge was also awarded a 30% share in license PL701, where the work commitment is to reprocess 3D

seismic and then decide to drill or drop the license within two years of award. The seismic reprocessing is ongoing for 2014 delivery. Njord The Statoil-operated 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 facility. The oil is stored and offloaded from the Njord B vessel to tankers for transport to the market. Njord is a key asset within GDF SUEZ E&P Norgeâ&#x20AC;&#x2122;s portfolio and one of our five producing assets. Njord contributed a total oil production of 2.5 million barrels of oil equivalents in 2013, representing

10% of GDF SUEZ E&P Norgeâ&#x20AC;&#x2122;s total production. A 50-day turnaround was conducted in the summer of 2013. However, in July, evaluation of an updated structural model of Njord A built by Det Norske Veritas indicated stress overload in the deck structure. Further verification of the model confirmed the situation and the platform was

found in its present condition to be unfit for starting up production. Weights (mainly drilling equipment/systems) were then removed from the platform and a plan for strengthening the deck structure offshore was made. Throughout the second half of 2013 it became evident that drilling operations and longer term production from Njord and Hyme would not be be possible

even after the offshore deck repair, and that also the platform hull strengthening/ replacement must be contemplated. A project organisation has been established to identify long-term solutions for Njord A. The current plan is to start production from Njord in the summer of 2014 up until April 2016, with no drilling activity.

Year 2013 The Norwegian Sea

Then Njord A will be towed to shore for further strengthening of both deck and hull structure. In parallell Njord B oil storage and offloading facilities will be evaluated for maintenance and modifications or new build. Hyme Hyme is an oil discovery located 19 km east of the Njord field and proved by well 6507/8-5, June 2009, in

Statoil-operated PL348. In March, Hyme started up production one month ahead of plan and on cost after the successful tie-in to Njord. Being a fast-track subsea development, Hyme consists of one oil producer and one water injector tied into the Njord A platform. The start up of water injection is delayed due to a break-down of the water

injection pump on Njord. Due to the structural integrity issues on Njord A, Hyme has been shut down since July. Start up of the water injection facilities is expected when Njord A is ready for production in the summer of 2014.

exploration and discovery, to development and production.

Hyme is the first project where GDF SUEZ E&P Norge has been involved throughout the entire phase â&#x20AC;&#x201C; from aquisition,

Year 2013 Barents Sea

Licenses in the Barents Sea PL723

PL612

PL722

PL610 PL715

PL607

PL709 PL230

PL710

SNØHVIT

GDF SUEZ Operated GDF SUEZ Interest Licensed

Barents Sea Exploration The Barents Sea remains one of the core areas for GDF SUEZ E&P Norge. Preparations for the Byrkje exploration well continued in 2013. In 2013, GDF SUEZ E&P Norge as the operator of PL607 continued the planning of an exploration well in the Byrkje prospect. License PL607 is located 115–120 km to the northwest of the Snøhvit field, and 65 km west of the Johan Castberg field. Partners in PL607 are Concedo and OMV. The well was drilled with the semi-submersible rig Transocean Barents early in 2014. The well was dry. A site survey was acquired over another prospect in the license in the autumn of 2013. In the GDF SUEZ E&P Norgeoperated license PL612, a decision for 3D acquisition was taken transferring the license into the next phase. The partners in the license are Statoil and Petoro.

The Saturn prospect in PL230 and Askepott prospect in PL448 are scheduled for drilling in 2015. The Saturn site-survey was acquired in 2013. In June 2013, GDF SUEZ E&P Norge was awarded five new licenses including two operatorships in the Barents Sea through the 22nd licensing round. GDF SUEZ was awarded operatorship and a 30% share in license PL722. The work programme is to acquire 3D seismic in all awarded acreage (and consider acquisition of electromagnetic data) before a drill or drop decision within three years from award. In license PL723, GDF SUEZ was awarded operatorship and a 35% share with a work commitment to acquire all the

3D seismic already available in the awarded acreage. The drill or drop decision will be taken within two years from award. GDF SUEZ was awarded a 20% share as a partner in license PL709 with a work commitment to reprocess 3D seismic in the awarded acreage before a drill or drop decision is made within three years from award. In license PL710, GDF SUEZ was awarded a 20% share as partner with a work commitment to acquire all the 3D seismic already available in the awarded acreage, before a drill or drop decision is made within three years from award. GDF SUEZ was awarded a 20% share in PL715 as partner where the work programme is to acquire 3D in all awarded acreage before a drill or drop

decision is made within three years from award. The 3D seismic acquisition started in the summer of 2013 and will be finalized in 2014. The Ministry of Petroleum and Energy invited companies to nominate blocks for the 23rd licensing round and included in this the Barents Sea southeast area. GDF SUEZ purchased the 2D seismic data for this area from the Norwegian Petroleum Directorate in the summer and became an early participant in a plan to jointly acquire 3D seismic in the area during 2014 along with 16 other companies. Statoil is the operator of the project.

Year 2013 Snøhvit and Barents Sea

1984

2001

12%

4.3

The Snøhvit field discovered through well 7121/4-1

GDF SUEZ E&P Norge joins the project

Interest held by GDF SUEZ

Million tonnes LNG will be produced yearly

SNØHVIT

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

Snøhvit Since the summer of 2013, Snøhvit operations have been very stable. Operated by Statoil, Snøhvit is a key asset within GDF SUEZ E&P Norge’s portfolio and one of the company’s five producing assets on the Norwegian Continental Shelf. Snøhvit contributed a total production of 3.1 million barrels of oil equivalents in 2013, representing 13% of GDF SUEZ E&P Norge’s total production. GDF SUEZ lifted a total of four LNG cargoes from the Snøhvit plant in 2013. The LNG-plant was shut down for planned deriming 26

January. During start-up, a gas leak was detected in the cold box which led to a longer shut-down of the plant. During this shut-down, modifications were made to the process that significantly improved the performance of the plant. As such, the plant ran from August to December at 100% design capacity with no unplanned shut-downs. This is a new record for Snøhvit. Snøhvit Improvement Project 2 (SIP2) continued the planning of modifications for the 2014

turnaround. In addition to a large maintenance scope, the scheduled turnaround in 2014 with SIP2 modifications should enable the plant to deliver up to 104% of design capacity at a regularity of 90%.

developed. The aim will be to ensure stable production plateau of feed gas to the LNG plant at Hammerfest over the next 30 years or so.

Over the next years, further development of Snøhvit will comprise drilling of a new CO2 injection well, a new gas production well in the Snøhvit structure, and a gas producer in the Snøhvit Nord structure. Subsequent to this the Askeladd structure will be

Year 2013 Greenland

2010

26.25% 2015

GDF SUEZ E&P Greenland establishedt

2 licenses awarded to GDF SUEZ E&P Greenland AS

Interest held by GDF SUEZ E&P Greenland AS

Potential start of exploration drilling

ANU NAPU UPERNAVIK

NUUK

Greenland GDF SUEZ E&P Greenland is an affiliate of GDF SUEZ E&P Norge GDF SUEZ E&P Greenland AS was established as an affiliated company to GDF SUEZ E&P Norge AS in October 2010. On 2 December 2010, GDF SUEZ E&P Greenland AS, Shell Kanumas A/S (operator), Statoil Greenland AS and NUNAOIL A/S were awarded two large exploration licenses in the Baffin Bay offshore West Greenland. The two frontier licenses named 2011/12 (also named Anu, block 5) and 2011/14 (Napu, block 8) are located north of 73°N and cover a total area of approximately 20,000 km2, corresponding to a total of

approximately 30 Norwegian blocks. Both licenses have been granted for a period of up to 10 years. During this period, seismic investigations and subsurface evaluations will take place along with potential exploration drilling in 2015. The 2013 activities were centred around a site survey of potential drilling sites and shallow core locations during the summer months by the Fugro Discovery vessel in a successful campaign lasting just over two months. In addition, processing was

completed on the 3D seismic acquired during 2012, enabling more detailed work assessing the prospectivity of the licenses. • Blokk 5 (Anu): Shell Kanumas A/S (41.125%), Statoil Greenland AS (20.125%), GDF SUEZ E&P Greenland AS (26.25%), and Nunaoil A/S (12.5%) • Blokk 8 (Napu): Shell Kanumas A/S (46.375%), Statoil Greenland AS (14.875%), GDF SUEZ E&P Greenland AS (26.25%), and Nunaoil A/S (12.5%)

Year 2011 Sustainable development

Year 2013 Sustainable development

Sustainable development HSE objectives Our ambition within health, safety and environment (HSE) is to have zero incidents, and our ultimate goal is to excel in HSE performance. GDF SUEZ E&P has an ambition and stated policy to be in the upper quartile with regard to HSE performance of the E&P companies operating in Europe. GDF SUEZ E&P Norge has the objective of achieving top quartile HSE performance in all companyoperated activities on the Norwegian Continental Shelf. Working with HSE in GDF SUEZ E&P Norge GDF SUEZ E&P Norge has an integrated and holistic approach towards HSE. We use an organisational model to

ensure that we work with HSE within all relevant dimensions of an organisation. We place particular emphasis on the following five dimensions: structure and regulations; technology and operation; values, attitudes and competence; interaction and work processes; social relations and network. These five dimensions influence one another and the whole is greater than the sum of its parts. To work efficiently with HSE along the five dimensions stated above, we have developed a culture that emphasises collaborative work towards a common goal. GDF SUEZ E&P Norge believes this is a prerequisite for success. We summarise this by saying “Everybody needs somebody”

and encourage everyone working for us to pursue teamwork, openness, loyalty and drive. This is based on the understanding that there is a connection between organisational culture and HSE, and that by making this understanding an integrated part of the daily work practice, this will lead to overall good performance. HSE performance GDF SUEZ E&P Norge assumed operatorship for Gjøa in November 2010. During the three first full calendar years of production there were no serious HSE incidents at Gjøa.

operations at Gjøa. Still, the HSE results for all of the company’s operations show a serious incident frequency of 0.0 and a total recordable injury rate of 3.6, which is below the target values of 1.3 and 4.5, respectively. The Gjøa health service is well organised and fully operative. There is an on-going focus on risk reduction of exposure to working environment factors, and the cooperation between health and working environment service providers and internal departments is good. Health checks of exposed groups and risk communication of working environment factors have been prioritised tasks in this respect.

No serious incidents were recorded in 2013 for the whole of the company’s operations, but there were three minor injuries. Injuries occurred related to

Year 2013 Sustainable development

Emergency preparedness The emergency preparedness organisation in GDF SUEZ E&P Norge has been consolidated through exercises and improvement of plans. Emergency preparedness on the Gjøa field has been strengthened by an agreement for a shared Search and Rescue (SAR) helicopter with Oseberg (Statoil), and by implementation of a radar-based oil spill detection system. The medical emergency preparedness on board Gjøa, in cooperation with on-call duty doctors onshore, has proven to function very well when needed.

Environment The company has established good practices within oil spill preparedness, which often is a part of our emergency drills. GDF SUEZ E&P Norge is a member of the Norwegian Clean Seas Association (NOFO) and Oil Spill Response (OSR). It is important for the company to initiate dialogue with the relevant authorities and with the Intermunicipal Oil Spill Combat groups (IUA) ahead of new activities, as well as initiate contact and agreements with other operators in the area. This is

well incorporated in the planning of new explorations well scheduled for 2014.

The production drilling activity on Gjøa was completed in 2012 and all drilled wells are now in operation. On Gjøa, 92% of chemicals discharged to sea in 2013 were green chemicals. A total of 1,030 tonnes of green and 95 tonnes of yellow chemicals were discharged to sea in connection with production on Gjøa. A total of 68 tonnes of ordinary waste and 467 tonnes of hazardous waste were generated on Gjøa. The waste recycling rate of ordinary waste

at Gjøa was 95% and the waste sorting rate was 82%. There were two accidental spills to sea on Gjøa during 2013. Both were spills of chemicals. Offshore emissions to air included 81 tonnes of NOx and 121,400 tonnes of CO2. GDF SUEZ is a member of the NOx fund and thereby contributes to initiatives to reduce NOx emissions in the industry. Emissions and discharges to the environment from opera-

tions at Gjøa were within the discharge permit and are reported to the environmental authorities according to current regulations. In October and November 2013 the company drilled the exploration well 35/9-9 Gjøa P-8 PL153. During the operations no unplanned discharge occurred. When drilling the well only water-based drilling mud was used. A total of 2,662 tonnes of water-based mud was discharged to sea and 40 tonnes of mud was shipped to shore for waste

handling. Further a total of 1,353 tonnes of drill cuttings were discharged into the sea during the drilling. A total of 1,621 tonnes of green and 59 tonnes of yellow category chemicals, as defined by the Norwegian Environment Agency’s (Mdir) classification scheme, were discharged into sea. There was no discharge of red or black category chemicals, fully in compliance with Mdir’s zero discharge targets. The Gjøa P-8 exploration drilling generated 40 tonnes of normal waste and 1,039 tonnes of

hazardous waste in 2013. Of the hazardous waste, 975 tonnes was slop sent to shore for waste handling. Source of emissions during drilling of well 35/9-9 was diesel combustion for energy production. The most important environmental indicators for emissions to air were: Diesel consumption 1,925 tonnes 6,101 tonnes CO2 emissions NOx emissions 88 tonnes

Year 2013 Community relations

Bachelor’s programme in subsea technology in Florø

Florø Turn & Idrettsforening

Community relations

FTIF – Florø Turn & Idrettsforening

GDF SUEZ E&P Norge’s main contribution to society is safe, reliable and economic operations in all our activities.

Policy

Donations

Sponsorship

GDF SUEZ E&P Norge’s goal is to maintain close dialogue with society in general and our stakeholders in particular, in order to be able to act on their requirements and to build an understanding of and interest in our activities.

Every year, GDF SUEZ E&P Norge gives a Christmas donation to a charity organisation. In 2013, our support went to the Red Cross and their efforts in Syria and the Philippines.

GDF SUEZ E&P Norge has drawn up its sponsorship policy in line with that of the GDF SUEZ Group, focusing on projects within nature, culture and sports. We primarily support projects in regions where the company is active, namely Rogaland, Finnmark and Sogn og Fjordane.

In 2008, GDF SUEZ E&P Norge established a sponsorship agreement with Florø Turn & Idrettsforening, the athletics club in Florø. In 2009, the agreement, which focuses on athletics for children and young people, was extended, making GDF SUEZ E&P Norge the main sponsor of the club through 2014. The club has more than 900 members. The GDF SUEZ Gjøa base is located in Florø, and through Florø Turn & Idrettsforening we wish to contribute to positive activities in the local community.

Den Norske Turistforening

International Chamber Music Festival

The Coastal Museum in Florø On 7 March 2013, a Gjøa exhibition at the Coastal Museum in Florø was officially opened by Åshild Kjelsnes, chairman of the Sogn og Fjordane County Council. In 2012, GDF SUEZ E&P Norge signed an agreement to support the establishment of this exhibition in the museum’s oil and gas section. Bachelor’s programme in subsea technology in Florø 13 August 2013 saw the opening of a new Bachelor’s degree programme in subsea technology in Florø. GDF SUEZ E&P Norge contributes to the

funding of this three-year engineering degree. The programme is located in Florø, and is organised by Bergen University College. Den Norske Turistforening First established in 2003, our cooperation with Den Norske Turistforening (DNT/The Norwegian Trekking Association) continued in 2013 with support to “Opptur” – a youth event organised with local trekking associations around the country. DNT’s main objective is to inspire as many as possible to enjoy the great outdoors, making sure that all activities are carried out in an environmentally friendly manner.

International Chamber Music Festival GDF SUEZ E&P Norge has been one of the main sponsors of the International Chamber Music Festival (ICMF) since 2003. As of 2010, GDF SUEZ E&P Norge signed a new three-year agreement with ICMF. The festival takes place in early August every year in the Stavanger region. The programme consists of Norwegian and international artists and is developed by the festival’s artistic leaders; currently Martin Fröst and Christian Ihle Hadland.

LiNSI Together with two other GDF SUEZ E&P International affiliates, GDF SUEZ E&P Norge supports the Living North Sea Initiative (LiNSI), a multi-stakeholder initiative that strives for a sustainable future for the North Sea region. LiNSI aims to contribute to improving the ecological status of the North Sea and to develop a funding mechanism for improvement plans. Initially, LiNSI is exploring the potential opportunities provided by the decommissioning of offshore oil and gas infrastructure.

Year 2013 Our team

Our team As per February 2014.

Management

Human Resources

Communication

HSEQ

MANAGEMENT Management

Ulf Rosenberg Head of Communication

Eva Fagernes Head of HSEQ

Randi Eltvik Larsen Advisor Quality

Anders R. Tharaldsen Advisor HSE - Risk Mgmt

Maria Moræus Hanssen Managing Director

Anne Blomberg Advisor Communication

Elin Witsø Leader HSE Operations

Håvard Kalve Advisor Quality

Helen Lima Jensen Coordinator Doc & LCI

Geir Pettersen Deputy Managing Director

Cathrine Andresen Advisor Communication

Tor Ove Holsen Leader D&I Management

Stig Sandal Adv Emergency Management

Kari Samnøen Adv Management Support

Cecilia Sandsmark Coordinator Communication

Wenche R. Helland Advisor Environment

Sigbjørn Dalane Adv Health & Work Environment

Magnar Støle Head of Human Resources

Jannecke A. Moe Advisor Environment

Ole Kjetil Handeland Advisor HSE

Anne Svendsen Leader HR Operations

Communication

HSEQ

Human Resources

Finance & Admin.

Brit Jorunn Marker Leader Employment Conditions

Johannes Finborud Chief Financial Officer

Tore Jan Landmark Leader Office Facility

Øystein Aspøy Coordinator Industrial IT

Gert Tjensvoll Leader Economics

Bjørn Ravndal Sr Advisor C&P Management

Kjersti Bergsåker-Aspøy General Counsel

Gaute Barstad Leader ICT

Anders Erik Haugen Manager Purchase

Rasmus Osaland Economist

Aina Skretting Østrått Sr Advisor Resource Mgmt

Sigurd Helgesen Manager Tax

Tommy Rafos Leader ICT

Jan H. Standal Advisor Purchasing

Lars Christian Takla Business Planner

Kari Ingunn Nystein Advisor HR Applications

Tone Lise Pedersen Manager Finance

Nils Ivar Sørensen Advisor ICT

Marita O’ Reilly Purchaser

Torhild S. Jensen Coordinator Administration

Renate Vistnes Coordinator Pers. & Training

Livar Haaland Manager Procurement

Koen Vlaeminck Leader ICT Project Office

Stian Nielsen Purchaser

Nina O. Sefland Coordinator Office Services

Oddvar Aarberg Manager Logistics & Base

Olivier Bou Advisor ICT

Tom Baug Coordinator SAP

Renate Horpestad Coordinator Administration

Finance & Admin.

Year 2013 Our team

Martha Viste Coordinator Administration

Sissel Dyskeland Advisor Contracts

Randi Følgesvold Controller Financial G&A

Kay Zaccarini Business Controller Expl.

Vibeke Mowatt Leader Air & Mar Operations

Tine Harstad Eggen Legal Counsel

Jan Gunnar Kristoffersen Administrator Contracts

Eirik Matre Controller Treasury

Johanna Röman Controller

Knut Arne Eltvik Advisor Marine Operations

Renate Solheim Lian Advisor Tax

Anne Lise Sekse Coordinator Contracts

Juliette Bou Controller Compliance

Niki Tsakiroglou Controller Financial Applic.

Marie Arnstad Coordinator Air Transport

Rune Haukebøe Manager Contracts

Eirik Sørensen Leader Business Controlling

Lisbeth Helle Business Controller Operations

Vincent Danset Controller Financial

Trond Wefring Advisor Material Management

Jan-Tore Storslett Specialist Contracts

Trygve Bø Leader Financial Acc. & Rep.

Marie Guldbrandsen Westre Business Controller Asset

Borghild Stava Controller Financial JV

Bjørn Hereid Senior Coordinator Log Op

Erling Natvig Specialist Contracts

Anne Selbæk Project Leader

Aleksandra Uzunova Business Controller

Kjetil Sande Ldr Material Mgmt & Log Op

Willy Svarstad Advisor Logistic Operations

Asset

Robert Ødegård Advisor Material Management

Siri Lunde Sr. Engineer Development

Gerhard V. Sund Manager Drilling & Well

Jochen Rappke Chief Geoscientist

Matthew G. Reppert Principal Petrophysicist

Reinhardt Dankertsen Coordinator Subsea Tools

Viggo Dybsland Olsen Senior Engineer Facility

Tommy Andreassen Project Manager Drilling

Mailin Seldal Chief Reservoir Engineer

Katja Krause Geophysicist

Laila Sælemyr Bjerknes Purchaser

Tom K. Steinskog Leader Technology & Devel

Karstein Hagenes Project Manager Drilling

Gildas Lageat Senior Geologist

Neal Hewitt Principal Engineer Prod

Angeles Yackow Sr Engineer Tech & Devel

Mehryar Nasseri Senior Engineer Drilling

Steve Bryant Senior Geologist

Siv Kirstin Borgersen Senior Engineer Production

Mike Robertson Head of Asset

Bjørg Solheim Manager Projects

Dwayne W. Martins Engineer Drilling

Lise Schiøtz Senior Geologist

Anne Sofie Olsen Senior Engineer Production

Karel Schothorst Proj. Mng. Gjøa Area Dev

Britt Lise Skotheim Coordinator Asset Mgmt

Sigbjørn Kalvenes Mgr Petroleum Technology

Caroline Haugvaldstad Geologist

Torunn Haugvallstad Senior Reservoir Engineer

Asset

Year 2013 Our team

Exploration

Philippe Vincent Senior Reservoir Engineer

Erik Schiager Manager Area Non-op Vent

Paul Milner Manager New Venture

Mark Vrijlandt Geophysicist

Gunilla A. Steen Senior Geologist

Andrea Reinholdtsen Reservoir Engineer

Erling Kindem Manager Area Non-op Vent

Britt Heskestad Mgr Barents Sea/Vøring

Alv Aanestad Senior Petrophysicist

Philippe Bailly Senior Geologist

Ingvild Kommedal Reservoir Engineer

Niklas Olsen Engineer Facility

Odd Fuglestad Principal Geophysicist

Jörgen Samuelsson Principal Geologist

Sarah Robertson Senior Geologist

Claire LeMaitre Reservoir Engineer

Exploration

Philip Hughes Senior Geophysicist

Øyvind Skinnemoen Principal Geologist

Magali Romanet Senior Geologist

Patrick Hamou Manager Asset Area

Tina R. Olsen Head of Exploration

Fanny Marcy Courtial Senior Geophysicist

René Thränhardt Senior Geologist

Jyotipuspa Goswami Senior Geologist

Carl Otto Houge Manager Asset Non-op Vent

Jan Åge Greger Chief Geologist

Pauline Convert Geophysicist

Tove Thorsnes Senior Geologist

Jonathan Duncan Senior Geologist

Business Development & Commercial

Rutger van der Vliet Geologist Bernhard Frey Geologist

Anders Ringen Trainee Geoscience Business Dev & Com

Operations

Ove Harbo Sr Adv Business Developm Nicole Leclercq Advisor Commercial & BD

Tore Øvernes Adv Sales & Transportation Operations

Per Langhaug Offshore Installation Mgr John Winterstø Offshore Installation Mgr

Polina Safronova Geologist

Eric Robial Head of BD & Commercial

Morten Philbert Advisor Gas Operations

Hilde Ådland Head of Operations

Pål Hamre Team Ldr Op & Maintenance

Jan Willem Achterberg Leader Data Management

Nils-Erik G. Lomheim Manager Sales & Transp

Natalia Vennikova Adv Sales and Transportation

Ingrid R. Devold Torjussen Manager Technical

Jens Petter Gjærum Team Ldr Op & Maintenance

Marianne Førland Advisor Technical

Kjell Arne Abrahamsen Leader Upstream Commercial

Guillaume Vens Adv Sales and Transportation

Kick Sterkman Offshore Installation Mgr

Nils Martin Bakka Team Ldr Op & Maintenance

Frode Gjerde Advisor GIS

Eirik Vestersjø Leader Infrastructure

Antoine Sabatier Adv Sales & Transportation

Arild Jåsund Offshore Installation Mgr

Bjarte Rimereit Team Ldr Op & Maintenance 45

Year 2013 Our team

Oddgeir Madsen Team Leader Deck & Marine

Erik Winge Ldr Planning & Project Contr

Arne Bekkeheien Ldr Mechanical & Maintenance

Steinar Andersen Senior Engineer Automation

Elin K. Sletten Senior Engineer Telecom

Ørjan Midttveit Team Leader Deck & Marine

Bjørn Løkkebø Halsnes Planner

Hans Chr. Rentsch Sr Eng Structure/Inspection

Torkel Fagnastøl Sr Project Engineer Mod

Tommy Berfjord Senior Engineer Operation

John Arne Pedersen Team Leader Deck & Marine

Kai Solheim Project Ldr Modification

Midhat Durakovic Sr Eng Maint Technical Safety

Philip Chan Senior Engineer Metering

Jørn Meling Gas Dispatcher

Bente Brinchmann Team Ldr Health & Work Env

Årstein Bringsvor Leader Auto / El / Tele

Harald Flesland Sr Engineer Maintenance

Arild Sunde Senior Engineer Process

Knut Ytre-Hauge Eng Electrical & Instrument

Jan Turi Team Ldr Health & Work Env

Olav Dolonen Leader Process

Jostein Larsen Sr Engineer Mechanical Static

Per Kristian Roald Senior Engineer Subsea

Dina Kayrbekova Engineer Mechanical Rotating

Bjørn-Peder H. Johansen Team Ldr Health & Work Env

Clarence Soosaipillai Leader Subsea

Ingvald Sviland Senior Engineer Electrical

Per Morten Kyvik Senior Engineer Instrument

Are Høivik Engineer Mechanical

Sergey Pilosov Eng Mech Crane & Lifting

Steinar Hellesøy Engineer Process

Bernt Økland Technician Process

Jan Rune Kalsvik Technician Process

Gunnar Løvås Technician Process

Åse Helland Sørskår Engineer Operation

Gaute Fjeld Engineer HVAC

Dagfinn Ommundsen Technician Process

Åse Andersen Technician Process

Ståle Johansen Technician Process

Michael B. Pettersen Engineer Technical Safety

Jonas Wignäs Engineer Maintenance

Vidar Mostrøm Technician Process

Ingunn Frette Technician Process

Svein Arvid H. Nordal Technician Process

Aage Torvanger Engineer Inspection

Einar Harbo Engineer Maintenance

Ove Lid Technician Process

Joakim Borgen Technician Process

Lars Westbye Technician Process

Jon Kristian Loftås Engineer Electrical

Elin Klemp Trainee Engineer Process

Kjersti M. Byrkjeland Technician Process

Aimée R. Lobben Technician Process

Hans Ottar Moen Technician Process

Eirik Høvring Engineer Process

Frank Nagy Technician Process

Tom Borger Nielsen Technician Process

Rune Dønheim Technician Process

Jan Rasmussen Technician Process 47

Year 2013 Our team

Øyvind Torjussen Technician Process

Yuriy Vasylyuk Technician Process

Simon Arne Sekkingstad Apprentice Process

Trond Myklebust Technician Automation

Pierre Stig Ingvar Lindberg Technician Automation

Nils Stian Finnseth Technician Process

Tom Erik Eriksen Technician Process

Hans S. Witsø Svedhaug Apprentice Process

Tore Nordhasli Technician Automation

Ken-Widar Kydland Technician Automation

Jostein B. Nilssen Technician Process

Håvard H. Johansen Technician Process

Michael Isaksen Apprentice Process

Harry Jordalen Technician Automation

Kjetil Volden Technician Automation

Atle Hovstad Technician Process

Terje Tobias Haugenes Technician Process

Gro W. Røtvold Coord Deck & Material

Ove Lindanger Technician Automation

Sindre Lysgård Technician Automation

Jan Berntsen Technician Process

Johannes Landvik Technician Process

Brynjar Joa Coord Deck & Material

Jone Askeland Technician Automation

Erik Antvedt Aarnes Technician Automation

Arnt Ingve Friestad Technician Process

Jens Ole Nissen Technician Process

Rune Rogstad Coord Deck & Material

Ørjan Bye Skulbru Technician Automation

Ove Eckholdt Technician Automation

Roger Dahlgren Technician Electrical

Vidar Rasmussen Technician Mechanical

Vidar Vold Technician Mechanical

Bjørn Einar Ness Operator Deck & Crane

Trond E. Hagfjäll-Lande Opr Deck & Scaffolding

Ingar Hagen Technician Electrical

Chris-André Valle Technician Mechanical

Kjell Magne Miljeteig Technician Mechanical

Johnny Lilleland Operator Deck & Crane

Tor-Arne Risvåg Opr Deck & Scaffolding

Gjert Ståle Olsen Technician Electrical

Svein Arne Fosshaug Technician Mechanical

Per R. Jeffrey Stiansen Technician Mechanical

Erlend Vikedal Operator Deck & Crane

Ove Grønnevig Opr Deck & Scaffolding

Jostein Haugland Technician Electrical

Steinar Rørvik Technician Mechanical

Bjørn Idar Sønning Technician Mechanical

Kjetil Bakhaug Operator Deck & Crane

Per Inge Hole Technician Electrical

Jan Sverre Sønning Technician Mechanical

Eric Pieter-Jan Krijger Technician Mechanical

Håkon Emil Trondsen Operator Deck & Crane

Jan Ekornsæter Technician Electrical

Roar-Helge Torheim Technician Mechanical

Ronnie Bøe Viken Technician Mechanical

Gunnar Aakre Operator Deck & Crane 49

Year 2013 Board of Directors’ report

Board of Directors’ Report 2013 GDF SUEZ E&P Norge AS is engaged in the exploration for and production of oil and gas on the Norwegian Continental Shelf (NCS). The Company’s head office is located in Sandnes. At the end of 2013 the Company portfolio contained 57 licenses on NCS, including shares in the Njord, Fram, Snøhvit, Gjøa, Vega, Gudrun, Hyme and H-North fields. The Company is the operator of the Gjøa field (PL153 and PL153B) which started producing in November 2010, and of the exploration licenses PL607 Byrkje, PL610 Kimbe, PL612 Nemo, PL634, PL636, PL722 and PL723. In addition, the fully owned subsidiary GDF SUEZ E&P Greenland AS is engaged in the exploration for oil and gas in Greenland. The Company has 2 licenses in Baffin Bay, Block 5 Anu and Block 8 Napu. Exploration New acreage In the 22nd licensing round the Company was awarded two new operatorships and two new partnerships in the Barents Sea. The awarded operatorships included a 30% share in PL722 and a 35% share in PL723. The awarded partnerships included 20% shares in both PL710 and PL715. In 2013 the Company was awarded four new partnerships in the APA 2012. The award included a 20% share in license PL700 and a 30% share in PL701, both in the Norwegian Sea. The other two licenses are located in the

North Sea and the award included a 20% share in both license PL686 and PL687. The results of APA 2013 were announced in mid-January 2014 and the Company was awarded one new partnership license. Drilling The Company drilled one operated exploration well in 2013. The P8 well, 35/9-9 in PL 153, is located 8 kilometres west of the Gjøa field in the North Sea. The exploration well did not encounter any hydrocarbons. The Company also participated in the drilling of well 6407/8-6 and 6407/8-6 A

Through three years as operator of Gjøa, GDF SUEZ has achieved great results. In 2013 the regularity of the facility has been excellent, resulting in record production. – Jean-Marie Jacques Dauger

Snilehorn in PL348B in the Norwegian Sea. The wells were drilled about 4 kilometres west of the Hyme field and 15 kilometres northeast of the Njord field. The wells proved oil. The Snilehorn discovery could be tied in to the Njord field, either directly or via the Hyme field.

Development Gudrun The Gudrun facilities have been installed on the field, and the offshore hook-up and commissioning are currently ongoing with some delay mainly due to the rough weather. The modifications on the Sleipner and the Kårstø facilities are nearly completed.

Drilling operations will continue until 2016 with a minimum of 7 wells to be completed, including one well on Gudrun East. Production started 7 April 2014. Njord North West Flank (NWF) The development of the NWF was approved in April 2010 and the topside modifications were almost completed when the Njord platform was shut down summer 2013 due to integrity issues. The drilling of the NWF wells from the Njord platform has also been postponed due to same issues. H-North The development of H-North was approved in June 2013

Jean-Marie Jacques Dauger Chairman of the Board Graduate of the ‘Ecole des Hautes Etudes Commerciales’. He has been working in the Group since 1978, holds the position of Executive Vice President, and is member of the GDF SUEZ management committee. 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’.

Year 2013 Board of Directors’ report

and by the end of 2013 the project was 65% completed.

field will be shut down again in April 2016 for additional long-term repair.

H-North is a subsea tie-back to Fram West. Production from the field will exclusively be oil. Due to lack of an export solution the gas will be re-injected into Fram West. Drilling of a multilateral well started in December 2013. First production is planned for May 2014.

Fram Net production from the Fram field in 2013 was 3.0 million boe corresponding to 8,185 boe/day. The performance of the Fram reservoir has been good and the expected decline in production due to pressure drop in the reservoir and increased water production has not yet occurred.

company’s share of the production in 2013 was 0.6 million boe corresponding to 3,709 boe/day. The Hyme field is a subsea tie-back to Njord, with one production well and one water injection well. The field had stable production until the Njord field was shut down in July 2013. Production is expected to resume when Njord is put back on production in the summer of 2014.

annual working environment survey which includes all employees and consultants. The survey covers a wide range of factors impacting the working environment. The results from the survey form the basis for an annual update of activity plans aimed at maintaining a good working environment. The results from the last survey show that the working environment and general welfare in the workplace is good.

Going concern

In 2013 GDF SUEZ E&P Norge AS had no serious incidents. However, there were three minor injuries, one of which led to a lost time incident (LTI). The three incidents are:

Operations Gjøa Net production to GDF SUEZ E&P Norge from the Gjøa field in 2013 was 14.3 million boe corresponding to 39,208 boe/ day. This represents 56% of the Company’s total production. Production from the Gjøa field has increased compared to 2012 due to high regularity and an increase in the gas export capacity up to 18.5 MSm3/d. Njord Net production from the Njord field in 2013 was 2.5 million boe corresponding to 11,465 boe/day. Production from Njord was lower in 2013 than in 2012 as the field was shut down from July 2013 due to integrity issues discovered during maintenance. A major modification project to strengthen the deck beams is currently ongoing. Start-up is planned for the summer of 2014 and then the

Snøhvit Net production from the Snøhvit field in 2013 was 4.2 million boe corresponding to 11,397 boe/ day. In 2013 the LNG plant had several unplanned shutdowns during the first half year. However, since starting-up after the last shutdown period in June 2013 the production from the LNG plant has been stable at 100% of design capacity. Vega Unit Net production from the Vega Unit in 2013 was 1.1 million boe corresponding to 2,913 boe/ day. Production has been stable during the year with high regularity. The Vega South well was re-drilled at the end of 2013, start-up late January 2014 with unstable production. Hyme Production from the Hyme field started 25 February 2013. The

In accordance with the Accounting Act § 3-3a, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern. This assumption is based on profit forecasts for the year 2014 and the Company’s long-term strategic forecasts. The Company’s economic and financial position is sound.

Working environment

• Hand burn (Siddis Supplier) TRIF • Leg injury (Siddis Supplier) TRIF & LTI • Tooth injury (Gjøa) TRIF

Gender equality

At year end the Company had 256 employees. In accordance with applicable laws and regulations the Company registers its employees’ absence due to illness. During 2013 absence due to illness has been 2.46% (1.66% in 2012).

The Board of Directors is attentive to society’s expectations and the legal requirements with which the Company is expected to comply in order to promote gender equality and prevent differential treatment of women and men. There is a continuous effort to adhere to these requirements.

The Company conducts an

By year-end 73 of the

Benoit Mignard Board member

Rolf Erik Rolfsen Board member

Graduate of ‘Ecole Nationale Supérieure des Mines de Paris’. After having worked in the Research and Development Division of EDF, he joined the Group in 1992. He has been holding various positions within the Finance and Gas trading & marketing divisions. He was appointed Executive Vice President and Chief Financial Officer of the Global Gas and LNG Business Line in January 2012.

Chairman of the Board of Directors of Technip Norge AS and of CGGVeritas Services (Norway) AS as well as Wavefield Inseis AS. From 2001 to 2009 he was a member of the main Board of Directors of Technip S.A. From 1987 to 2000 he was Managing Director of TOTAL Norge AS and of Fina Exploration Norway from 1999 to 2000. His academic background is in economics and he is ’Chevalier de la légion d’honneur’.

company’s 256 employees were women. The management team consists of ten persons of whom four are women. One of eight members of the Board of Directors is a woman. 87 new employees were recruited in 2013, of which 20 are women and 67 men. Among the new recruits was a female Managing Director. All salaries are established without prejudice. Four employees work part-time, of which two are men. There are no differences in the working hour regulations for women and men.

Discrimination The Discrimination Act’s objective is to promote gender equality, ensure equal opportunities and rights, and to prevent discrimination due to ethnicity, national origin, descent, skin colour, language, religion and faith. The Company is working actively, with determination and systematics to promote the act’s purpose within its business. Included in the activities are recruiting, salary and working conditions, promotion, development opportunities and protection against harassment. The Company aims to be a workplace with no discrimination due to reduced functional ability and is working actively to design and implement the

physical conditions in such a manner that as many as possible may utilise the various functions. Individual adjustments of workplace and responsibility are made for employees or new applicants with reduced functional ability.

granted permit. There were two small accidental spills to sea during 2013, both were spills of chemicals. The Gjøa field generated 68 tons of normal waste and 467 tons of hazardous waste in 2013.

Environment Gjøa field The Gjøa facilities are designed to cause as little environmental impact as possible. Electricity from shore is the main source of power for the Gjøa installation, and there is a single fuel low NOx turbine operating the gas export compressor. In addition, a waste heat recovery unit is installed. Closed flare during regular operation also contributes to a reduction of environmental impact. The emissions and discharges to the environment from operations at Gjøa were within the discharge permit and are reported to the environmental authorities according to current regulations. 92% of chemicals discharged to sea were green chemicals and are not expected to cause any environmental impact. The company emphasize the use of environmentally friendly chemicals. There was a discharge of yellow chemicals of 95 tons which was within the

The most important environmental indicators for emissions to air were: Flaring 1.1 mill Sm3 Fuel gas consumption 51 mill Sm3 Diesel consumption 127 tons CO2 emissions 121,400 tons NOx emissions 81 tons Exploration drilling In October and November 2013 the company drilled the exploration well 35/9-9 P-8 in PL153 Gjøa using the drilling rig Transocean Barents. During the operation no unplanned discharge occurred. The well was drilled using water based drilling mud. A total of 2,662 tons of water based mud was discharged to sea and 40 tons of mud was shipped to shore for waste handling. Further, a total of 1,353 tons of drill cuttings were discharged into the sea during the drilling. A total of 1,621 tons of green and 59 tons of yellow category chemicals, as defined by the Norwegian Environment Agency’s (Mdir)

classification scheme, were discharged into the sea. There was no discharge of red or black category chemicals, fully in compliance with Mdir’s zero discharge targets. The exploration drilling of well 35/9-9 generated 40 tons of normal waste and 1,039 tons of hazardous waste in 2013. 975 tons of the hazardous waste was slop sent to shore for waste handling. The source of emissions during drilling of well 35/9-9 was diesel combustion for energy production. The most important environmental indicators for emissions to air were: Diesel consumption 1,925 tons CO2 emissions 6,101 tons NOx emissions 88 tons The company is a member of the NOx fund. Through payments to the NOx fund GDF SUEZ contributes to initiatives to reduce NOx emissions in the industry.

Financial market, credit and liquidity risks As of 31 December 2013, current and other long-term liabilities amounted to NOK 5,367 million and NOK 16,753 million respectively. The financial position of the Company is

Didier Holleaux Board member

Terje Overvik Board member

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, LNG, distribution and exploration/production divisions. Since March 2007 he has held the position of E&P Senior Vice President.

Graduate with a PhD from the Norwegian Institute of Technology. He worked for Statoil for 23 years in positions such as Offshore Installation Manager on Statfjord, Vice President for Statfjord Operation, Exec. VP Technology and Research and finally, as Exec. VP of Exploration and Production Norway. In 2007, he joined GDF SUEZ E&P Norge as Managing Director and in December 2011 he was promoted to Deputy Vice President, Regional Division, in GDF SUEZ E&P International. 53

Year 2013 Board of Directors’ report

good. The financial situation will always be influenced by fluctuations in the price of crude oil and gas and in exchange rates. The Company’s loans are stated in NOK with a floating interest rate. Consequently, the company’s profit and financial position will be affected by changes in the interest rate market. The Company has guidelines for entering into derivative contracts in order to manage the commodity price risk. The company enters into commodity based derivative contracts consisting of market swaps for oil and gas products to reduce the exposure. The Company’s strong financial position means that it would be able to withstand reduced oil prices and fluctuations in exchange rates for an extended period. The Company regards its credit risk as low since the majority of its sales are to companies within the larger GDF SUEZ group (the Group) and to other large corporations. The company has not realised losses on receivables during the 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 implemen-

ted at a Group level in accordance with existing corporate procedures. The pre-tax rate of return (operating profit/average total assets) in 2013 was 25 per cent, compared with 25 per cent in 2012. The rate of return after tax was 6 per cent in 2013, compared with 7 per cent in 2012. The differences between pre-tax income and cash flow from operations are due to differences in the timing of tax expenditures and depreciation. On 10 May 2013, GDF SUEZ E&P Norge (“EPN”) signed a Sale and Purchase Agreement (“SPA”) with Core Energy for a 12% participating interest in the Njord and Noatun Licenses and for one third of the Company’s interests in the Polarled/Kristin pipeline system. On the same day, Core paid to EPN 13.5 MUSD as a deposit (“Deposit”). All conditions precedent (CPs) needed to be fulfilled by 1 November 2013, including two CPs related to obtaining approval of the Norwegian Ministry of Petroleum (“MPE”) and the Ministry of Finance. Following a presentation on integrity issues encountered on the Njord A platform ( “Platform”) presented by Njord’s operator

Statoil on 19 August 2013, Core claimed to have difficulties obtaining an insurance for coverage of its interest in the Platform. The MPE granted the parties an approval to the transfer subject to Core getting proper insurance for the Platform by 20 November 2013. On 22 November 2013, Core sent a notice of termination of the SPA to EPN claiming that it was not able to meet the MPE’s requirement on proper insurance for the Platform and that the Longstop Date (“Longstop Date”) as well as the date of 20 November has passed without the parties being able to complete the transaction. Core also requested a repayment of the Deposit, including interest on it. EPI and EPN have initiated an arbitration proceeding in accordance with the SPA in order to claim damages (still to be quantified) from Core. The arbitration tribunal has been established, and hearings will take place in Oslo during three consecutive weeks starting the second week of January 2015.

Financial aspects The Company produced 25.5 million boe in 2013, which is at the same level as in 2012. Total sales in 2013 amounted to 24.3

million boe, giving total revenues of NOK 11,075 million. Out of the total 24.3 million boe sold, 7.9 million bbls consisted of crude oil and condensate. Revenues from the crude oil and condensate sales were NOK 5,079 million compared to NOK 6,193 million in 2012. The Company sold 1.8 billion Sm3 of gas including Snøhvit LNG in 2013. Revenues from gas and LNG amounted to NOK 4,299 million compared to NOK 3,861 million in 2012. The revenue from sale of NGL and LPG mix amounted to NOK 1,667 million in 2013 compared to NOK 1,653 million in 2012. A total of 3.6 million boe of these products were sold in 2013, reduced from 4.3 million boe sold in 2012. Net cash flow from operating activities in 2013 was NOK 5,110 million, compared to NOK 6,104 million in 2012. The investments in 2013 amounted to NOK 2,352 million, compared to NOK 2,800 million in 2012. The majority of the investments were made in the ongoing development of the Gudrun and the H-North fields, completion of the Hyme development, production drilling on Vega Unit and maintenance on the Njord field.

Rob Buchan Board member

Gerhard V. Sund Board member

Graduate of Aberdeen University and Robert Gordon University. He has worked in the Group since 2008, holding Affiliate and Head office positions in Operations Management. Since May 2013 he has held the position of Aberdeen General Manager for GDF SUEZ E&P UK Ltd.

Graduate of NTNU (petroleum engineering) and BI (management). He worked nine years with Amoco and ten years with BP in different exploration and production roles both offshore and onshore. From 2006-2008 he was Offshore Installation Manager at Valhall before joining GDF SUEZ E&P Norge as Manager Drilling & Well in September 2008.

The Company’s inter-company long-term debt at the end of 2013 was NOK 5,067 million, compared to NOK 6,567 million at the end of 2012. The decrease in long-term loans is due to the partial repayment of the Gjøa project loan at the end of 2013. The Company’s net income for 2013 was NOK 265 million higher than 2012. The ordinary pre-tax profit for 2013 was NOK 6,126 million, compared to NOK 5,719 million in 2012. After NOK 3,999 million for tax expenditures and NOK 571 million for deferred tax, net income amounted to

NOK 1,556 million, compared to NOK 1,291 million in 2012. The accounts have been prepared on a going concern basis. The Board of Directors confirms 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 2013 which have not been reflected in these accounts. The fully owned subsidiary

GDF SUEZ E&P Greenland AS had no revenues in 2013 and incurred costs of NOK 128 million. The Company provided group contribution to the subsidiary equal NOK 128 million. The value of shares in GDF SUEZ E&P Greenland AS is equal to the funds injected in the company; NOK 431 million. Allocation of net income The Board of Directors, having no knowledge of any matters not disclosed that could be of significance when evaluating the Company’s position, recommends the following allocation of net income:

Net result 2013 NOK 1,556,388,342 From retained earnings NOK 141,611,658 Dividend NOK 1,698,000,000 If the General Assembly follows the Board of Directors’ recommendation regarding distribution of dividend, total equity after allocation of dividend will be NOK 2,297 million, giving an equity ratio of 9.4%.

31 DECEMBER 2013 / 3 APRIL 2014

Jean-Marie Jacques Dauger Chairman of the Board

Didier Holleaux Board Member

Benoit Mignard Board Member

Rolf Erik Rolfsen Board Member

Terje Overvik Board Member

Rob Buchan Board Member

Gerhard Våland Sund Board Member Employees’ Representative

Elin Sigrid Witsø Board Member Employees’ Representative

Maria Moræus Hanssen Managing Director

Elin Sigrid Witsø Board member Holds a Master of Mechanical Engineering degree from NTNU. 24 years of broad experience in the E&P business, including engineering and HSE supervision. She has previous work experience from Kværner and the Petroleum Safety Authorities. Joined GDF SUEZ in 2009 and presently holds the position as Leader HSE Operations.

Year 2013 Annual accounts

Income statement Note

2013

2012

3, 5

11 000 386 039

11 760 920 733

75 029 461

71 551 162

11 075 415 500

11 832 471 895

1 853 729 720

1 870 920 805

454 571 795

282 285 919

OPERATING INCOME Sales oil and gas Tariff income Total operating income OPERATING EXPENSES Operating expenses Exploration expenses Payroll expenses Depreciations

6, 7

73 278 887

54 247 327

2 447 810 698

3 453 275 247

25 636 285

105 790 294

98 378 992

4 935 181 395

5 784 744 575

6 140 234 105

6 047 727 320

Impairment Other operating expenses Total operating expenses Operating profit

FINANCIAL INCOME AND EXPENSES Interest income Interest income from group companies

Foreign currency exchange gain (-loss) Interest expenses to group companies

639 676

1 719 572

20 877 745

20 503 927

143 254 928

-128 686 444

151 955 293

219 318 021

Other interest expenses

27 063 401

2 962 405

Net financial expenses

14 246 345

328 743 371

6 125 987 760

5 718 983 948

4 569 599 418

4 427 846 043

1 556 388 342

1 291 137 905

1 698 000 000

1 214 353 000

Operating profit before tax

Tax expenses

Net income

Allocated as follows: Proposed dividend Transfer other equity Total allocations

-141 611 658

76 784 905

1 556 388 342

1 291 137 905

Balance sheet Note

2013

2012

21 668 913 851

21 482 618 208

431 039 440

303 157 775

ASSETS NON-CURRENT ASSETS

Tangible fixed assets Property, plant & equipment Financial assets Shares in subsidiary Other financial investments Total non-current assets CURRENT ASSETS Drilling equipment and spare parts

Receivables Accounts receivable from operators Trade accounts receivable Other receivables Total receivables Cash and cash equivalents Total current assets

11 4

Total assets

188 000

22 100 141 291

21 785 963 983

48 105 974

42 669 837

120 137 312

68 654 767

108 539 851

328 242 147

1 671 452 019

1 521 182 671

1 900 129 182

1 918 079 586

369 225 513

453 934 869

2 317 460 668

2 414 684 291

24 417 601 959

24 200 648 275

EQUITY AND LIABILITIES EQUITY

Paid-in capital Share capital Share premium reserve Total paid-in capital Retained earnings Other equity Total equity

14, 15

141 500 000

1 273 500 000

1 415 000 000

881 740 634

1 005 890 495

2 296 740 634

2 420 890 495

3, 14

LIABILITIES

Provisions Pension liability Deferred tax Financial instruments Other provisions Total provisions Other long-term liabilities Long-term loan, parent company Total long-term liabilities Current liabilities Trade accounts payable Public duties payable Accounts payable to operator Dividend Payable tax Financial instruments Other short-term liabilities Total current liabilities Total liabilities Total equity and liabilities 58

107 131 490

143 366 264

7 966 952 706

7 385 815 694

3 484 440

3 612 397 286

3 239 284 021

11 686 481 482

10 771 950 418

5 067 000 000

6 566 999 999

16 753 481 482

17 338 950 417

109 578 906

841 385

69 804 810

29 047 647

1 049 002 454

1 001 712 657

1 698 000 000

1 214 353 000

2 333 909 745

1 946 653 312

1 901 370

5 700 560

105 182 558

242 498 802

5 367 379 843

4 440 807 363

22 120 861 325

21 779 757 780

24 417 601 959

24 200 648 275

Year 2013 Annual accounts

Cash flow statement 2013

Operating profit before tax

2012

6 125 987 760

5 718 983 948

-3 629 205 190

-2 678 062 469

2 535 786 227

3 572 079 908

Changes in accounts receivable and accounts receivable operators

168 219 752

512 170 082

Changes in accounts payable and accounts payable operators

156 027 318

-60 251 516

Payment of tax payable Depreciations

Difference between pension cost and amounts paid into pension scheme

20 504 435

18 401 363

Changes in other balance sheet items

-267 801 567

-979 795 455

Net cash flow from operating activities

5 109 518 735

6 103 525 861

-2 351 993 428

-2 800 239 445

Acquired tangible fixed assets Shares in subsidiary

-127 881 665

-232 779 056

Net cash flow from investing activities

-2 479 875 093

-3 033 018 500

Payment of long-term borrowings

-1 499 999 999

-1 800 000 000

Dividend

-1 214 353 000

-1 053 750 500

Net cash flow from financing activities

-2 714 352 999

-2 853 750 500

Net change in cash and cash equivalents

-84 709 356

216 756 861

Cash and cash equivalents at beginning of year

453 934 869

237 178 008

Cash and cash equivalents at end of year

369 225 513

453 934 869

Notes 01 Accounting policies The annual accounts have been prepared in accordance with the Norwegian Accounting Act of 1998 and Norwegian generally accepted accounting principles. Revenues. The sale of crude oil and gas is recognized through sales method. 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.

Depreciation of oil and gas production facilities is calculated in accordance with the unit-ofsales method. In accordance with this method the annual depreciation will be determined based on the relationship between the annual sold volume and the estimated proven 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.

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.

Property, plant and equipment is capitalized and depreciated linearly over the estimated useful life. Costs for maintenance are expenced as incurred, whereas cost for improving and upgrading property, plant and equipment are added to the acquisition cost and depreciated with the related asset.

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.

When new reserves are discovered and fully developed and put into production, the exploration drilling costs will be depreciated based on the-unit-of-sales method. Drilling costs related to dry/non-commercial holes are expensed.

Subsidiaries and investment in associates. Farm-in agreements. Farm-in agreements are Subsidiaries and investments in associates are usually made during the exploration and development phases, and are characterised by the seller valued at cost in the company accounts. The investment is valued as cost of the shares in the deferring future financial advantages, in the form of reserves, to reduce future financing obligations. subsidiary, less any impairment losses. Group consolidated financial statements are not prepared One example can be that a licence interest is as the group is included in the consolidated finan- acquired and covered by the seller’s share of the cial statements at the parent company in France. drilling-related costs. During the exploration phase, the company will normally enter farm-in agreeAssets liabilities and expenses related to ments based on historical costs, as actual value participating interests in exploration and often is difficult to determine. However, during the development phase, farm-in agreements are production licences (joint ventures). The company’s participating interests in exploration entered as acquisitions at actual cost when the and production licences on the Norwegian company is selling shares of oil and gas interests. Continental Shelf are accounted for in the income Fair value is determined by the costs that the buyer statement and the balance sheet in accordance has agreed to carry. with the proportional consolidation method. Swap/unitization. Swapping ownership interests Transfer of joint ventures shares. Transfer are measured at fair value of the interest to be of interest in a petroleum licence on The Norwegian swapped, unless the transaction lacks commercial Continental Shelf require approval from the substance or if the fair value of the swapped Norwegian Government. Under such transactions interests is not measurable. During the exploration the sale price is generally considered to be on phase, the company will normally account for an "after tax" basis (after-tax transaction) as the swaps based on historical costs, as it is often consideration is not taxable for the seller and difficult to determine the fair value. not deductible for the buyer through depreciations. Spare parts and drilling equipment. Spare parts and drilling equipment are valued at the lower When acquiring licences that yield rights to of cost or market value. Cost is estimated using the exploration for and production of petroleum, it FIFO method. Capital spare parts are capitalized will be considered if the acquisitions should be and presented as part of the investment. classified as a business combination or asset acquisition. As a main rule, acquisitions of indiOver-/under lift and petroleum in stock. vidual licences do not meet the definition of Obligations arising as a result of lifted quantities of business combination, and will accordingly be crude oil that are larger than the company’s particihandled as acquisition of individual asset. pating interests in a licence, are valued at production Oil and gas producing licences. For oil and cost, less depreciation. Receivables arising as a gas producing ownership interests, as well as result of lifted quantities of crude oil that are less than licences in the development phase, the acquisition the company’s share in a licence, are valued at the cost will be allocated between entered exploration lower of production cost and sales price. Petroleum costs, licence rights, production facilities and in stock which has not passed the Norm Price-point, deferred taxes. is valued at production cost, less depreciation.

Property, plant and equipment. All costs 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.

In connection with agreements for acquisitions/ trade of interests, the parties will establish a time for the acquisition of the net cash flow from the effective date (often set on 1 January of the calendar year). In the period between the effective date and the implementation date, the seller

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 daily bookkeeping 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).

will include the acquired interest in the seller’s accounts. In accordance with the acquisition agreement, there will be a settlement with the seller of net cash flow from the ownership interest during the period from the effective date to implementation date (Pro&Contra settlement). The Pro&Contra settlement will be adjusted against profit/loss and against the acquisition cost, as the settlement (after reduction for taxes) is regarded as part of the payment for the transaction. Going forward from the implementation date, revenue and costs are included in the buyer’s results. As regards taxes, the buyer will include for taxation net cash flow (Pro&Contra) and any other revenue and costs as of the effective date. Allocations will not be made for deferred taxes in connection with acquisition of licences that are defined as acquisition of assets.

Uncertain obligations. The company will, through its activities, be involved in conflicts and disputes. The company will accrue for obligations in connection with such unresolved issues based on the best estimate, when it is probable that an outflow of economic benefits will be required to

Year 2013 Notes

settle the obligation. It is assumed that the results of the ongoing conflicts will not have a significant impact on neither the company’s financial position.

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 corresponding amount is capitalized as part of the producing asset. The asset 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 deferred 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. Accounting for licence cost. The company's account reflects the net cost after charging partners their share of licence costs on licences which the company operates. Cash flow statement. The cash flow statement is presented using the indirect method. Cash and cash equivalents include bank deposits. Leasing. The company has operational leasing contracts only. The related cost is charged to the profit and loss as incurred. Financial instruments. The company enters into commodity based derivative contracts consisting of market swaps for oil and gas products. Hedging. The company applies the principals of IAS 39 and uses the following criteria for classifying a derivative or another financial instrument as a hedging instrument: (1) the hedging instrument is expected to be highly effective in offsetting the changes in fair value

or the cash flow of an identified object – the hedging effectiveness is expected to be between 80-125%, (2) the hedging effectiveness can be measured reliably, (3) satisfactory documentation is established before entering into the hedging instrument, showing among other things that the hedging relationship is effective, (4) for cash flow hedges, that the future transaction is considered to be highly probable, and (5) the hedging relationship is valuated regularly with quantitative analysis and is considered to be effective. Cash flow hedges. The efficient part of changes in the fair value of a hedging instrument is recognised in the equity. The inefficient part of the hedging instrument is reported in the income statement. When a hedging instrument has matured, or is sold, exercised or terminated, or the Group discontinues the hedging relationship, even though the hedged transaction is still expected to occur, the accumulated gains and losses at this point will remain in comprehensive income, and will be recognised in the income statement when the transaction occurs. If the hedged transaction is no longer expected to occur, the accumulated unrealised gains or losses on the hedging instrument will be recognised in the income statement immediately.

02 Financial market risk The company’s financial result is affected by fluctuations in crude oil and gas prices and foreign currency exchange rates (mainly USD and EUR). 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 Financial instruments The company enters into commodity based derivative contracts consisting of market swaps for oil and gas products. SWAP contracts for oil is hedged towards Brent Blend and SWAP contracts for gas is hedged towards NBP and TTF prices. For 2013 the realised amount on SWAP contracts is a loss of NOK 44 795 856.

2013

2012

Total hedging cost Liquids hedging cost

-24 507 812 -20 288 044

28 378 812 24 900 088

Total hedging revenues (-loss)

-44 795 856

53 278 900

NOK

The table below shows an overview of MTM liability value as of 31.12.2013 of NOK 1 901 370. Of this amount NOK 3 973 658 is due in 2014 and NOK 2 072 288 is to be received in in 2015. Booked 31.12.2013 Due 2014 2015 CFH commodities liability CFH commodities reserves equity

MtM inefficient part

Liability Equity

1 901 370 -1 303 829

3 973 658 -2 724 862

-2 072 288 1 421 033

Cost

90 541

189 221

-98 680

04 Bank deposits Restricted funds relating to withhold taxes NOK amount

31.12.2013

31.12.2012

11 061 720

32 670 596

Total 2013

Total 2012

The company has an unused overdraft facility of NOK 50 000 000.

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

Norway

France

Crude oil NGL

517 174

Gas

102 106

Condensate

346 147 71 551

Gas infrastructure

2 127 945

Germany

5 847 277

4 765 592

5 847 277

1 135 794

1 666 966

1 652 968

1 631 198

4 298 830

3 861 250

313 794

346 147

75 029

71 551

-44 796

53 279

11 075 415

11 832 472

2013

2012

308 709 134 47 462 097 59 914 425 30 525 673 446 611 329 373 332 441 73 278 887

242 778 735 299 418 521 39 245 820 39 245 820 46 013 794 25 627 498 54 247 327

248.6

198.0

Hedging oil and gas Total

1 036 979

2 127 945

8 614 269

06 Salaries and fees

Salaries Social security tax Pension costs Other employee benefits Total salary Recharged salaries Total net salary Number of full-time equivalent in fiscal year

Salary for Managing Director This post is both salary for Atle Sonesen and Johannes Finborud. The total salary, bonus and other fringe benefits are NOK 3 445 122. Remineration to the Board Payment for remuneration to the Board was NOK 90 000 in 2013. Share options The General assembly of GDF SUEZ has decided rectricted share plans and share subscription option plans. The restricted plan is subject to certain conditions, such as stay put in the company for a certain period. Some employees of GDF SUEZ E&P Norge AS were invited to participate in the plans. These plans have no material impact on the financial statement. Audit fees The fee from Ernst and Young for the 2013 accounts is allocated as follows: NOK

Audit decreed by law Other attestation services Technical tax services Other services Total

1 470 068 60 000 240 114 209 488 1 979 670

Year 2013 Notes

07 Pensions The company is required to have an occupational pension scheme in accordance with 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 up to 12G is financed through an insurance company, the rest is financed through normal operation.

Pension rights earned during the year Interest expence on earned pension rights Yield pension cost Net pension cost Assets/obligations

2013

2012

56 855 634

44 050 376

3 156 899

4 592 429

-2 629 011

60 012 533

46 013 794

2013

2012

Pension benifits obligations

276 350 945

187 709 215

Plan assets

-116 069 629

-82 455 394

Estimate change

-53 149 826

38 112 443

Net pension liability

107 131 490

143 366 264

2013

2012

Discount rate

4.10%

2.20%

Expected increase in salaries

3.75%

3.25%

Expected increase in pensions

0.60%

0.00%

Expected increase in basis for calculating government contributions

3.50%

3.00%

Expected return on plan assets

4.10%

2.20%

Financial assumptions

08 Related party transactions

Related party

Value of Value of Relationship transactions transactions to entity in 2013 (NOK) in 2012 (NOK)

Nature of transactions

Other information

Interest and financial income GDF SUEZ SA

Parent company

20 504 000

from group account

Profit&Loss

GDF SUEZ SA

Parent company

33 409 000

34 814 000

Transport cost of gas

Profit&Loss

GDF SUEZ SA

Parent company

2 774 217 000

1 660 324 000

Sales of gas

Profit&Loss

Operation expense,

Associated co.

16 316 000

30 293 000

Parent company

55 467 000

50 798 000

Associated co.

151 955 000

214 562 000

GDF SUEZ E&P Greenland AS

Subsidiary

6 940 316

2 545 142

GDF SUEZ E&P Greenland AS

Subsidiary

12 989 011

37 065 346

Parent company

1 214 353 000

1 053 750 500

Associated co.

7 703 000

14 627 000

GDF SUEZ SA

Parent company

16 209 000

Dividend paid Balance Sheet Cost accruals, support Balance Sheet from head office Accrued income Balance Sheet

GDF SUEZ Trading

Parent company

182 089 000

Accrued income Balance Sheet

Associated co.

1 499 999 999

1 800 000 000

Accrued income Balance Sheet

GDF SUEZ DEXpro GDF SUEZ E&P International GDF SUEZ CC Division J

GDF SUEZ E&P International GDF SUEZ DEXpro

GDF SUEZ CC Division J

shared solution SAP Operation expense, support

Profit&Loss

charged by head office Interest and financial cost,

Profit&Loss

long-term loan Recharge, salaries and

Profit&Loss

travel expenses Short-term payable to

Profit&Loss

consolidated subsidaries and JV Balance Sheet

09 Tangible fixed assets

Acquisition cost 01.01.13

Acquired during the year *** Disposal during the year ** Reclassification Acquisition cost 31.12.13 Acc.depreciation 31.12.13 Book value as of 31.12.13 Actual depreciation Actual impairment Estimated useful life

Production plants

Assets under development

Equipment Capitalized etc. exploration cost

26 240 219 189 959 676 668 0 867 046 837 28 066 942 694 12 397 668 243 15 669 274 451 2 372 550 176 0 *

4 572 987 893 1 537 868 367 10 228 915 -737 056 229 5 363 571 116 0 5 363 571 116 0 0

425 687 203 49 214 564 0 0 474 901 767 279 729 560 195 172 208 75 260 522 0 3-8 år

563 659 994 149 211 186 51 635 529 -129 990 608 531 245 044 90 348 967 440 896 077 0 0

Total

31 802 554 279 2 695 970 786 61 864 444 0 34 436 660 621 12 767 746 770 21 668 913 851 2 447 810 698 0

* Depreciation according to Unit of Sales method ** Capitalized exploration drilling costs from previous years are evaluated as non-commercial discoveries. Disposal related to "Assets under development" is cancellation of the Kristin crossover project. *** NOK 20 mill of the capitalized exploration cost for 2013 is related to the Juv prospect, PL248C/090B. The well was confirmed dry in March 2014, and the amount will be expensed in the 2014 accounts.

10 Other provisions and obligations Asset retirement obligation Other long-term provisions Other provisions

2013

2012

3 232 871 087 379 526 198 3 612 397 285

2 853 114 277 386 169 744 3 239 284 021

Asset retirement obligation. In accordance with licence concession terms of the production licences which the company holds, the Norwegian State can take over the installations free of charge when the production ends or when the licence 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 cost regarding plugging and securing of production wells. The accretion expense is classified as operating expenses. 2013

2012

Asset retirement obligations at January 1 Liabilities incurred / revision in estimates Accretion expense Asset retirement obligations at December 31

2 853 114 277 291 781 281 87 975 529 3 232 871 087

2 008 916 444 751 029 456 93 168 377 2 853 114 277

Long-term assets related to removal and abandonment at January 1 Additional assets / revision in estimates Depreciation Long-term assets related to removal and abandonment at December 31

1 781 201 876 291 781 281 -249 555 992 1 823 427 166

1 288 683 587 751 029 456 -258 511 167 1 781 201 876

Assets related to removal and abandonment is also included in note 9. Drilling commitments. The company, together with its licence partners, is committed to take part in the drilling of wells in accordance with the licence agreements.

Contractual obligations (in thousand NOK) Obligations committed

2014

Thereafter

Total

1 340 203

2 314 818

3 655 021

The contractual obligations are related to the acquisition and construction of assets in licences where the company has ownership interests.

Tax. The accounts include accruels for uncertain tax obligations of NOK 79 822 045. Other short-term liabilities. Prepayment received from Core Energy AS, of NOK 82.5 mill (USD 13.5 mill), is classified as other short-term liabilities as of 31.12.2013. The amount is received according to the "Sale and Purchase Agreement" with Core Energy AS regarding sale of a 12% share in Njord and Noatun, as well as 1/3 of the share GDF SUEZ E&P Norge owns in Norwegian Sea Gas Infrastructure (NSGI) and Kristin Gas Export Project (KGEP). The agreement has not been completed, and GDF SUEZ E&P Norge has decided to take this case to arbitration. The claim has not yet been quantified.

Year 2013 Notes

11 Inter-company balances Receivables Trade account receivables to intercompany Short-term receivables to parent company Interest income Liability Loan Interest expenses

31.12.13

31.12.12

21 363 308 916 465 896 20 877 744

261 550 929 970 662 922 20 503 927

31.12.13

31.12.12

5 067 000 000 151 955 292

6 566 999 999 219 318 020

The company has entered into an agreement with the parent company regarding financing. The loans are stated in NOK with floating interest. Interest expenses on the loans in 2013 were NOK 151 955 292, of which NOK 0 are capitalized.

12 Drilling equipment Spare parts and drilling equipment are valued at the lower of cost or market value. Cost is estimated using FIFO- method. Capital spare parts are capitalized and presented together with the investment.

2013

2012

48 105 973 48 105 973

42 669 837 42 669 837

2013

2012

Specification of the tax expense for the year: Change in deferred tax before adjustment in tax rates Deferred tax charge effect from new tax rates, 27% and 51% Tax payable Excessive tax provision previous years Total tax expense

582 238 117 -11 749 971 3 928 919 618 70 191 655 4 569 599 418

340 532 147 0 3 903 089 548 184 224 348 4 427 846 043

Specification of the tax basis for the year: Ordinary profit before tax Permanent differences Changes in temporary differences Basis ordinary income tax Limited deduction of financial expenses for tax purposes Current income tax on onshore activities Uplift Basis special petroleum tax

6 125 987 760 95 299 524 -660 240 548 5 561 046 737 -80 204 780 17 806 171 -754 995 065 4 743 653 062

5 718 983 948 147 628 056 336 841 650 6 203 453 655 153 018 822 -8 053 282 -911 440 328 5 436 978 867

Tax payable: Basis ordinary income tax Basis ordinary income tax after loss carried forward

5 561 046 737 5 561 046 737

6 203 453 655 6 203 453 655

Tax payable – ordinary income tax 28%

1 557 093 086

1 736 967 023

Basis special petroleum tax Uplift carried forward Basis special petroleum tax after loss and uplift carried forward

4 743 653 062 0 4 743 653 062

5 436 978 867 -1 104 733 817 4 332 245 049

Tax payable – special petroleum tax 50%

2 371 826 531

2 166 122 525

Drilling and well equipment Total inventories

13 Taxes

2013

2012

14 296 809 035 -107 131 490 -4 121 226 10 556 302 -19 707 541 -3 194 096 530 10 982 308 551 -104 369 294 19 707 541 -1 090 335 330 9 807 311 468

13 315 325 648 -143 366 264 3 660 658 13 195 378 0 -2 853 114 277 10 335 701 144 -136 413 069 0 -1 215 907 465 8 983 380 610

2 965 223 309 5 001 728 849 7 966 952 157 -15 827 875

2 893 996 320 4 491 690 305 7 385 686 625 -62 020 457

3 928 919 618

3 903 089 548

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 (27%)* Limited capitalization of interest on development projects Tax loss to be carried forward (51% only) Unused uplift Basis special petroleum tax (51%)* Deferred tax liability: Ordinary income tax (27%) Special petroleum tax (51%) Total deferred tax** Of which booked against equity Tax payable: Basis ordinary income tax Tax effect acquisition cost booked in balance Tax effect of group contribution Prior year adjustments

17 350 351

78 157 752

117 563 763

Tax advance paid

-1 690 517 976

-2 073 999 999

Total tax payable in balance sheet

2 333 909 745

1 946 653 312

Ordinary profit before tax

6 125 987 760

5 718 983 948

Marginal tax 78%

4 778 270 453

4 460 807 480

-377 497 533

-455 720 164

Other permanent differences

118 829 154

146 018 805

Limited deduction of financial expenses

-24 080 502

92 515 574

85 827 817

184 224 348

Reconciliation of tax expense and calculated tax expence:

Uplift

Adjustments from previous years Effect of changing tax rates to 27% and 51% Tax expense

-11 749 971

4 569 599 418

4 427 846 043

The tax loss can be carried forward indefinitely. * New tax rates of 27% for corporate tax and 51% for special petroleum tax, valid from 01.01.2014, have been implemented for the 2013 deferred tax closing balance. ** Change in deferred tax includes unitisation of H-North, whereof NOK 35 mill is booked against gain/loss realisation, classified as other operating expenses in the Income statement.

14 Equity

Equity 31.12.12 Current years profit Pension Hedging Dividend 2013 Equity 31.12.13 66

Share capital

Share premium reserve

Other equity

Total

141 500 000

1 273 500 000

1 005 890 495

2 420 890 495

1 556 388 342

12 482 626

141 500 000

1 273 500 000

4 979 171

-1 698 000 000

881 740 634

2 296 740 634

Year 2013 Notes

15 Share capital and shareholder information 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 and GDF Suez E&P Greenland AS.

16 Investment in subsidiaries Investments in subsidiaries are valued at cost in the company accounts.

Company

Business office

Stavanger

100%

GDF SUEZ E&P Greenland AS

Group contribution. In 2013 the group contribution to subsidiary amounted to NOK 127 881 665.

17 Reserves (not audited) According to reserve information published by the Norwegian Oil Directorate, the companys share of remaining reserves are: Licence duration

Oil (mill Sm3)

Gas (bill Sm3)

NGL (mill Sm3)

Condensate (mill Sm3)

10-04-23 09-03-24 09-03-24 01-10-35 08-07-28 09-03-24 17-12-14 31-12-28

0.66 0.80 0.18 0.00 1.44 0.30 0.64 3.63

2.16 0.86 0.00 24.12 7.59 0.67 0.10 2.73

0.92 0.15 0.00 1.39 4.04 0.41 0.04 0.89

0.00 0.00 0.00 2.99 0.00 0.00 0.00 0.00

Njord Fram Fram H-North Snøhvit Gjøa Vega Hyme Gudrun

31 DECEMBER 2013/3 APRIL 2014

Jean-Marie Jacques Dauger Chairman of the Board

Didier Holleaux Board Member

Rob Buchan Board Member

Benoit Mignard Board Member

Elin Sigrid Witsø Board Member Employees’ Representative

Rolf Erik Rolfsen Board Member

Gerhard V. Sund Board Member Employees’ Representative

Terje Overvik Board Member

Maria Moræus Hanssen Managing Director

Auditorâ&#x20AC;&#x2122;s report

Year 2013 Auditorâ&#x20AC;&#x2122;s report

GDF SUEZ E&P Exploration and production

6 5

GDF SUEZ E&P Exploration & Production represents a key activity in the strategic integration of the GDF SUEZ group across the natural gas value chain. Its mission is based on three main features:

• Taking advantage of its position in Europe in order to maximise the value of its assets through in-depth knowledge of the area, its 1 strong presence, exploration portfolio and costs. • Supporting GDF SUEZ in its development of high-growth zones by fostering synergies with other Group entities, especially through integrated projects in LNG or electricity production. • Performing its activities within a sustainable development perspective by consolidating its health, safety and environmental performance and contributing to the reduction of CO2 emissions while respecting ethical regulations.

Reserves (proven + probable) Natural gas and oil. Geographical breakdown.

1 5 Reserves (proven 4 + probable)

NORWAY (39%)

AFRICA (20%)

GERMANY (13%)

THE NETHERLANDS (11%)

OTHERS (10%)

UNITED KINGDOM (7%)

Production areas Production Areas Natural gas and oil. Geographical breakdown. TOTAL PRODUCTION 2013: 51.9 MILLION BOE.

NORWAY (47%)

THE NETHERLANDS (31%)

GERMANY (15%)

AFRICA (4%)

UNITED KINGDOM (3%)

Production Areas 8

United Kingdom

The Group began its exploration and production activities in 1994 when it acquired Erdöl-Erdgas Gommern GmbH (EEG). In 2003, it purchased onshore assets in Germany owned 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. Today, with 586 employees, the Lingen-based company generates about 17% of the domestic oil production and 10% of the gas production. The total production was about 7.94 3 in 2013. GDF SUEZ E&P Deutschland GmbH Mboe has holdings in 74 onshore natural gas and oil fields in Germany, of which 43 are operated by the company. In addition, the company holds several promising exploration licenses in the Upper Rhine Valley.

GDF SUEZ E&P UK Ltd is rapidly becoming one of the leading operators in exploration and production on the UK Continental Shelf. The company is focused on three core areas – the Southern North Sea (SNS), the Central North Sea (CNS) and the West of Shetlands. The company has a substantial portfolio of assets comprising more than 501licenses, 20 as operator*. Cygnus, Orca and Juliet in the SNS are the main operated developments. Cygnus is the largest gas discovery in the SNS in the last 25 years, with gross 2P reserves of approximately 18 billion cubic 11 in late 2015. First gas metres. First gas is expected was announced 10 from Orca in December 2013 and 9 Juliet in January 2014. The affiliate also has a growing Balanced sales portfolio portfolio8of discoveries and exploration projects. In October 7 2013, GDF SUEZ E&P UK entered the UK onshore market when it agreed to acquire a 25% 6 share in 13 licenses located in Cheshire and the East 5 Midlands. The company employs more than 300 1 people in offices in London and Aberdeen.

The Netherlands 6

*According to DECC rules. 4

Germany

TOTAL RESERVES 2013: 3 799 MILLION BOE.

The strategic partnership between GDF SUEZ 2 (70%) and China Investment Corporation (30%) reinforced our financial strength and offers new opportunities to the E&P teams.

ves (proven + probable)

5 GDF SUEZ E&P Nederland B.V. is the largest offshore gas producer on the Dutch Continental Shelf (DCS). Operating in a mature area, the 4 company is still discovering substantial reserves due to an extensive drilling programme. Currently operating more than 30 production platforms, 3 the company forms a vital part of the provision of energy to the Netherlands and several other countries. GDF SUEZ E&P Nederland B.V. is also leader in the field of transport infrastructure on the DCS as operator of Noordgastransport B.V. and NOGAT B.V. Both companies own offshore pipeline systems and treatment stations, transporting and treating gas from both GDF SUEZ Long term gas supply E&P Nederland and other producers on the Dutch, English, Danish and German Continental Shelves. GDF SUEZ E&P Nederland B.V. is continuously working on further improvement of safety, processes and technology.

Snøhvit

Njord

MALAYSIA Gjøa Fram Gudrun Cygnus UNITED KINGDOM

Juliet

NORWAY

GREENLAND

INDONESIA

Orca Amstel

GERMANY

Altmark Offshore Germany Onshore Germany

THE NETHERLANDS

BRAZIL

Römerberg

AUSTRALIA AZERBAIJAN

Absheron West Burullus

ALGERIA

Touat Sud-Est Ilizi

LIBYA

Onshore Libya

Offshore Mauritania

EGYPT

Alam El Shawish West

Ashrafi Wadi Dib & East Wadi Dib

Offshore Qatar QATAR

MAURITANIA

Other regions GDF SUEZ is also present in Algeria, the Ivory Coast, Mauritania, Libya, Azerbaijan, United States, Qatar, Australia, Indonesia, France, Brazil, Malaysia and Greenland.

Egypt The Group entered Egypt in 2001 with the acquisition of a 20% share in the North West Damietta block, which was later reduced to 10%. In 2012, the license was surrendered. In 2005, GDF SUEZ was awarded the West El Burullus concession in the Nile River Delta. As operator with a 50% share, GDF SUEZ made two gas discoveries and production startup is currently being envisaged. In 2007, the Group became an oil producer with a 45% share in the Alam El Shawish West concession. In 2010, the participation was reduced to 25%. After gas production startup in 2010, a second development phase was sanctioned in 2011 to increase gas production by 2014. In order to further develop, a full-fledged affiliate was established in 2009. In 2010, the Group completed the acquisition from Eni of a 50% share in the oil-producing field Ashrafi, located offshore in the Gulf of Suez. In 2013, GDF SUEZ was awarded Wadi Dib & East Wadi Dib onshore concession being 100% operator, located in the Eastern Desert, South of the Gulf of Suez.

• Algeria: Since 2002, GDF SUEZ has been the co-operator of the Touat permit, located in southwest Algeria, alongside SONATRACH. The development plan was approved in 2009. The estimated 2P reserves amount to 68.5 billion m3 of natural gas and 8.5 million barrels of condensates. Plateau production should reach 4.5 billion m3 per year. The drilling of the first production well began in July 2012. In August 2013, Groupement TouatGaz, a partnership between SONATRACH and GDF SUEZ, operating the Touat gas field, signed an EPCC (engineering, procurement, construction and commissioning) contract with the Spanish company Técnicas Reunidas for the development of the Touat field. GDF SUEZ is also partner in the Sud-Est Illizi license: a discovery of natural gas was made in 2013. • Mauritania: GDF SUEZ owns a 12.85% interest in an offshore block (Block 7). Drilling of an exploration well in this block started in 2013. • Ivory Coast: In 2013, GDF SUEZ signed a sale agreement with Gasol regarding its single asset. • Libya: GDF SUEZ holds a 20% participating interest in a license including three onshore blocks. In 2013, GDF SUEZ became the operator of the license alongside the Libyan Investment authority (LIA, 45%) and Repsol (35%) (to be confirmed by the Libyan authorities). • United States: In the Gulf of Mexico, the last production license held by GDF SUEZ is being discontinued. • Azerbaijan: GDF SUEZ owns a 20% working interest in the Absheron offshore block in the Caspian Sea. In 2012, the drilling of a side track toward the north of the structure confirmed very promising results. The resource potential is

•

between 150 and 300 billion m3 of gas with condensates. Qatar: GDF SUEZ is the operator of offshore Block 4 (60%) alongside partner Petrochina (40%). In 2013, a second exploration well was drilled in the Pre-Khuff formation. The results are being evaluated. Australia: GDF SUEZ holds a 60% working interest in each of three offshore gas fields (Petrel, Tern and Frigate) located in the Bonaparte Basin in Australia. The project is now in the concept definition phase and should enter the FEED phase in 2015. Indonesia: GDF SUEZ holds two licenses offshore East Kalimantan Island: Muara Bakau PSC (45%) and North Ganal PSC (10%). GDF SUEZ and Eni (operator) have submitted a development plan for the Jangkrik field (Muara Bakau) and this plan was accepted in 2013. Development of the field is currently ongoing with expected production start in 2017. Greenland: GDF SUEZ holds a 30% working interest in two offshore exploration licenses in Blocks 5 and 8, located in Baffin Bay. Brazil: In 2013, GDF SUEZ signed an ‘Asset Purchase Agreement’ (APA) with Vale S.A., to acquire its 20% participating interest in two gas exploration blocks in the Parnaiba onshore basin, located in the north east of Brazil. The Group also won six blocks in the Recôncavo basin (State of Bahia), in partnership with Petrobras. GDF SUEZ will have a 25% participation in each block, which will be operated by Petrobras. Malaysia: GDF SUEZ holds participating interests in two blocks: Block 2F is located in the offshore Sarawak region, north-west of Borneo Island, about 300-400 km off the coast of Malaysia. GDF SUEZ has a 20% participating interest in the block. Block 3F is located off Sarawak province and GDF SUEZ holds a 20% participating interest in the block.

GDF SUEZ group Worldwide presence

1 334 TWH (1)

NORWAY (27%)

UK (3%)

RUSSIA (17%)

EGYPT (3%)

ALGERIA (12%)

TRINIDAD & TOBAGO (3%)

NETHERLANDS (11%)

LIBYA (3%)

YEMEN (9%)

10 OTHERS (3%)

411

1 334 TWH (1)

SHORT-TERM

11 UNSPECIFIED (8%)

10 8

603

603 LONG-TERM

NON REGULATED

701

127

243

242

(French retail & European regulated retail)

OTHERS

(Key accounts, non regulated retail)

E&P PRODUCTION

THIRD PARTY 1

GAS TO POWER (INTERNAL) Gas to power – merchant

CONTRACTS 4

4 3

Gas to power – PPA

REGULATED 259

259 OTHERS

Gas supply portfolio

Gas sales portfolio

Long term Long gasterm supply gas supply

GDF SUEZ group GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 147,200 people worldwide and achieved revenues of €81.3 billion in 2013. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20). GDF SUEZ is also the main shareholder of SUEZ Environnement, an expert in water and waste management.

(1) Group share

Photos Jan Inge Haga Anne Lise Norheim Statoil GDF SUEZ Shell Songa Offshore Nikolaj Lund Kjell Helle-Olsen Bente Brinchmann David E. Antonsen Øyvind Hjelmen Jørn Steen Fotograf Eidsmo Egil Aardal

Agency procontra Paper MultiArt® Silk 150 / 250 g Circulation 1000 (Eng) + 600 (Nor) Print Spesialtrykk

NORTH AMERICA:

EUROPE:

2,600 € 4.2

133,400 € 65.8

13.3 0.1

49.3 1.6

EMPLOYEES

BILLION 2013 REVENUES

GW INSTALLED

GW UNDER CONSTRUCTION

SOUTH AMERICA:

4,600 € 3.8 EMPLOYEES

AFRICA:

BILLION 2013 REVENUES

EMPLOYEES

13 3.9

GW INSTALLED

BILLION 2013 REVENUES

GW UNDER CONSTRUCTION

100 € 0.2 1.4

Key Group figures

Power

Natural gas

• 147,200 employees throughout the world – incl. 59,700 in power and natural gas, and 87,500 in energy services. • €81.3 billion in 2013 revenues. • Activity in close to 70 countries. • €13.5 billion of investment over 2014–2016. • 800 researchers and experts at seven R&D centres.

• No.1 independent power producer (IPP) in the world. • No.1 producer of non-nuclear power in the world. • No.1 independent power producer (IPP) in the Persian Gulf countries, in Brazil and in Thailand. • 113.7 GW of installed power-production capacity. • 10 GW of power-production capacity under construction. • 17 GW of installed power-production capacity in renewable energy.

• A supply portfolio of 1,334 TWh. • No.2 buyer of natural gas in Europe. • No.1 natural gas transport and distribution networks in Europe. • No.1 vendor of storage capacity in Europe. • 382 exploration and/or production licenses in 18 countries. • 799 Mboe of proven and probable reserves.

ASIA & PACIFIC:

Total revenues, employees and capacity per region:

6,500 € 7.3

REVENUES: € 81.3 billion

EMPLOYEES

EMPLOYEES: 147 200 CAPACITY: 113.7 GW installed, 10 GW during construction

BILLION 2013 REVENUES

38.1 3

GW INSTALLED

LNG

Energy services

• No.1 importer of LNG in Europe. • No.3 importer of LNG in the world. • No.2 operator of LNG terminals in Europe. • A fleet of 17 LNG tankers incl. two regasification vessels.

• No.1 supplier of energy and environmental efficiency services in the world. • 100,000 clients in the public and private sectors throughout the world. • 1,300 sites throughout the world. • 202 district cooling and heating networks operated throughout the world.

Note: All figures at 31 desember 2013.

GW UNDER CONSTRUCTION

Our values Drive Commitment Daring Cohesion

GDF SUEZ E&P NORGE AS VESTRE SVANHOLMEN 6, N-4313 SANDNES P.O. BOX 242, 4066 STAVANGER TEL: +47 52 03 10 00 WWW.GDFSUEZEP.NO