GDF SUEZ Annual Report 2012 EN by procontra

GDF SUEZ E&P Norge AS

Annual report 2012

• GDF SUEZ E&P Norge AS was established in 2001. • At year end 2012 GDF SUEZ E&P Norge AS had a portfolio of 47 licenses on the Norwegian shelf. • GDF SUEZ E&P Norge AS produced 25.2 million barrels of oil equivalent in 2012, a 16% increase from 2011. • The company delivered more than 1/3 of the total production from the E&P division of the GDF SUEZ group. • The company had 200 employees at year end. • The GDF SUEZ group had 219 300 employees worldwide in 2012.

Contents 03 MISSION AND VISION 04 HIGHLIGHTS 2012 05 MANAGEMENT TEAM 06 MANAGEMENT’S REPORT 11 GDF SUEZ E&P NORGE 14 GDF SUEZ E&P 16 GDF SUEZ GROUP 18 ACTIVITIES 21 GJØA 23 GJØA TURNAROUND

25 BARENTS SEA AND SNØHVIT 29 THE NORWEGIAN SEA 33 THE NORTH SEA 37 GREENLAND 38 SUSTAINABLE DEVELOPMENT 42 COMMUNITY RELATIONS 44 OUR TEAM 55 BOARD OF DIRECTORS’ REPORT 61 ANNUAL ACCOUNTS 72 AUDITOR’S REPORT

25.0

22.0

11.3

13.7

4.2

10.8

4.0

3.3

2.7

4.8

1.2

2.6

1 373

754

1 086

623

1 268

467

508

264

366

-34

9 950

11 832

3 973

4 960

1 612

4 193

1 487

1 367

529

1 266

294

502

Year 2012 Key figures

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

Turnover

Net result

Oil & gas

Results 2012: 11,832 MNOK

Results 2012: 1,373 MNOK

Results 2012: 25 million BOE

2 421

2 328

2 358

1 963

3 116

1 879

2 140

2 607

893

1 472

216

671

310

494

536

528

654

335

126

204

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

Investments

Exploration cost

Equity 31.12.

Results 2012: 2,800 MNOK

Results 2012: 310 MNOK

Results 2012: 2,421 MNOK

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.

Year 2012 Highlights

Gjøa field development project finalised With the drilling of the three last production wells on Gjøa, the field development project was finished, and the Transocean Searcher drilling rig left the field in July.

First turnaround on Gjøa

100 million barrels produced

The first ever turnaround on Gjøa was executed in August-September, with a total of 8,300 planned man hours. The turnaround was completed according to schedule, and with excellent HSE results.

In August, GDF SUEZ production in Norway reached a total of 100 million barrels of oil equivalents since the establishment of GDF SUEZ E&P Norge in 2001.

GDF SUEZ PL612

PL610

PL 634 PL 153 Gjøa

PL607

PL2

PL 636

)

SNØHVIT HEILO GOLIAT

Export records

New licenses

Seismic acquisition and site surveys

In January, oil production from Gjøa and Vega reached 90,686 barrels per day, exceeding the design export capacity of 87,000 barrels per day. Following the turnaround on Gjøa, the gas export capacity of 17 M Sm3 was exceeded in December.

In APA 2011, GDF SUEZ E&P Norge was awarded two operatorships, PL634 and PL636, both located in the Gjøa area. In addition the company was awarded three partnerships in the North Sea.

Seismic acquisition in PL610 was completed in June. A site survey campaign was conducted in the autumn, covering PL153 and PL636 (Kon-Tiki and Ra) in the North Sea, as well as PL607 (Gloppen) in the Barents Sea.

Year 2012 Management team

Management team As per June 2013.

Acting Managing Director Johannes Finborud

Acting Chief Financial Officer Tone Lise Pedersen

Deputy Managing Director Geir Pettersen

Head of HSEQ Eva Fagernes

Head of Exploration Tina R. Olsen

Head of Human Resources Magnar StĂ¸le

Head of Communication Ulf Rosenberg

Head of Asset Mike Robertson

Head of Gas & Commercial Eric Robial

Head of Operations Hilde Ă&#x2026;dland

Year 2012 Management’s report

"As the operator of the Gjøa field, we have been put to the test in the past year." The result is high regularity and production beyond design capacity. The year 2012 demonstrated that GDF SUEZ E&P Norge is becoming an increasingly experienced and robust operator on the Norwegian Continental Shelf. At the core are safe and stable operations on the Gjøa field, production records, excellent performance of inspections and repairs, sound resource management, technology development, offensive area strategy, strengthening the organisation and the initial steps towards a more active exploration activity.

"2012 saw the final completion of the Gjøa project. The Transocean Searcher drilling rig completed the three-year campaign comprising the drilling of 11 good production wells for Gjøa in August. This also meant that the Gjøa project was complete, and delivered within an acceptable budget – considering that the drilling and completion of the production wells were more complex than first assumed," says Head of Asset, Geir Pettersen, who commends Statoil’s work as operator during the development phase.

The final cost of the Gjøa development was NOK 33 billion, while the originally budget was NOK 305 billion. At the same time as the project was completed, we passed a corresponding number for total production value since the start-up in November 2010. “Due to excellent project execution, good regularity and stable high oil prices,” states Pettersen, while looking at figures that show a regularity of 96 per cent on Gjøa up to

the planned turnaround in August. The August turnaround uncovered significant quality faults in one separator on the Gjøa platform. “A major turnaround in itself requires plenty of planning, and it is a comprehensive project. And we also had to handle an unexpected major repair of the Gjøa separator,” says Hilde Ådland, Head of Operations. She describes how the organisation yet another time had to face a major project it had not prepared for, but one that had to be handled immediately. “The planning and repairs were carried out in record time without injuries or serious incidents. This is due to our good ability to plan, sound engineering, solid professionalism and a massive effort. Gjøa delivered significantly higher production than originally budgeted for both oil and gas throughout the year,” Ådland says, praising all those involved in the projects. The separator repair comes in addition to the fast-track project to replace a gas export riser in 2011. This brought Gjøa’s export rate up to the planned design capacity – without any restrictions.

Year 2012 Management’s report

“The sum of these projects and the high regularity show the significance of us being a responsible operator – and demonstrate that we have been put to the test. The effort made by the organisation to maintain safe and stable operations on Gjøa is remarkable,” says Eva Fagernes, Head of HSEQ. “We haven’t had any serious incidents in connection with our operated activities. This is due to hard and excellent work throughout the organisation, and it will require great effort to keep us at this level,” Fagernes says.

“Safe and stable operations in all our operated activities is the key to our reputation as a solid and important contributor on the Norwegian Continental Shelf,” says Head of Communication, Ulf Rosenberg. While Gjøa was breaking production records, extensive work was carried out to mature additional reserves on the Gjøa field. Sound resource management is a key expectation from the authorities. The result of the company’s work on Gjøa is a significant increase in reserves,

equivalent to 37 million barrels. The reserves in the ground are the future of the company.

operating companies in the area participate for the first year,” Pettersen says.

“Over the course of a three-year period, we’ve had a reserve replacement rate of 157 per cent. This is due to a sound reservoir understanding on Gjøa, the decision to develop the Gudrun field and increased reserve estimates for Snøhvit,” Geir Pettersen says.

The development of technology is a continuous effort in the oil and gas industry as it strives for increased safety, improved environmental performance, as well as higher regularity and recovery rates. In 2012, GDF SUEZ introduced new software for real-time monitoring of all subsea systems, developed in partnership with the supplier FMC Technologies. The Condition Performance Monitoring (CPM) system enables us to better predict when faults and maintenance needs will arise.

In the autumn of 2012, a decision was made to change the operating model on Gjøa. The changes will take effect in 2013: “A well-founded and brave decision where we go against industry trends. We choose to hire permanent staff for the operational services that we had previously outsourced. The goal is to become even better at what we do today and prepare the organisation for greater tasks in the future. This preparation will ensure even more efficient work performance,” says Magnar Støle, Head of Human Resources. GDF SUEZ is taking the lead in the Gjøa area. “The authorities have made an initiative for increased cooperation between the operating companies in the Gjøa area, which fits our ambition to be a driving force and leading player in the development of the Gjøa area perfectly. We have taken on the role as the initiator and we head the forum where all the

“This also shows that we have the energy to carry out top-class technology development. This system can save us massive costs in the future. And it is of course very exciting that Gjøa is the first field in the world to use this system which has already attracted the attention of our industry on a global scale,” Ådland says. The future development of Snøhvit has been a hot topic in the past year, also in the public debate. “Together with the Snøhvit partners, we have spent a lot of capacity and resources on arriving at a solution that was acceptable to the majority of the license. The compromise is that there is not a basis for making a decision regarding a new production line on Melkøya

Year 2012 Management’s report

– yet. The so-called Train 2 has been put on ice. The time is not yet ripe for a decision regarding other extensive solutions for accelerating Snøhvit’s production either. This is a very important decision for our company as so much of our reserves are in Snøhvit, it represents our most long-term investment on the Norwegian Continental Shelf,” Pettersen says. However, he strongly emphasises that Snøhvit will in any case, in accordance with the Plan for Development and

Operation (PDO), require significant investments in the years ahead. Through the development of phases 2-4 which include drilling of new wells, subsea development of an entirely new field in the area (Askeladd), as well as offshore and onshore compression projects.

mitted an ambitious application. We have also worked hard on our planning and preparation of the drilling of the Byrkje prospect in PL607 in 2013-14,” says Tina R. Olsen, Head of Exploration.

The Barents Sea is a core area for GDF SUEZ in Norway.

The company’s largest commercial contract thus far was entered into in 2012. It concerns the Transocean Barents drilling rig for drilling in the Barents Sea as well as two other exploration wells in the Gjøa area in 2013-14.

“Throughout 2012, we have been working on the 22nd licensing round and we sub-

This includes a drilling site survey carried out in 2012.

Last year, a decision was also made regarding the Polarled pipeline, and a Plan for Installation and Operation (PIO) was submitted to the authorities in January. Polarled, formerly known as the Norwegian Sea Gas Infrastructure (NSGI), will expand the existing transport system in the Norwegian Sea and facilitate the phasing in of resources from existing and future discoveries in the area. “However, Polarled is primarily an important contribution to increase the company’s export capacity and free up reserves from the Njord field,” Eric Robial, Head of Gas & Commercial says. In July, an investment decision was made regarding the development of the Fram H-Nord structure, which will be produced with existing infrastructure from Fram towards the Troll field. The company’s largest current investment is the Gudrun project, where GDF SUEZ

is the sole partner. “This is a particular challenge in terms of cooperation in the project and our supervisory duty under the law,” Pettersen says, pointing out the excellent and integrated cooperation with Statoil as the operating company. Last year, Gudrun reached several important milestones. Progress has been good, which is not a given considering how pressure has developed in the industry in recent years. “We look forward to reaching our goal for production startup in the first half of 2014,” Pettersen says. The working environment survey demonstrates stable and good results. It also shows we have succeeded in attracting people with the right expertise. The organisation has also grown to ensure the company’s ability to handle future challenges. “We’re now preparing for what is required for the company to become the operator of larger modification projects and a development that can be tied in to Gjøa,” Støle says, underlining the combination of dream and ambition: That the operations at Gjøa are safe, efficient and attractive, and that exploration is successful so that Gjøa can become the development hub in the area. … Atle Sonesen was Managing Director of GDF SUEZ E&P Norge throughout 2012, and left the company in the spring of 2013.

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 Area F

PL285 PL107

PL347 PL348 PL329 PL328 PL285 PL107

PL153 PL187 PL025 PL174 PL191 PL006C

PL311B PL311 PL153 PL187 PL025

Snøhvit Njord

Fram Gudrun Snøhvit Njord

Gjøa Fram Gudrun Snøhvit Njord

2001

2002

2003

2004

• 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

• 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

• 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

PL187 PL025 PL174 PL191 PL006C PL006C

• 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

GDF SUEZ E&P Norge Our history in Norway

Production licenses Exploration licenses North Sea

Exploration licenses Norwegian Sea Exploration licenses Barents Sea

PL394 PL110C Area F PL110B PL110B Area F PL347 PL348 PL329 PL328 PL107

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

PL289 PL090C PL090B PL311B PL311 PL153 PL187 PL025

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

Vega South Gjøa Fram Gudrun Snøhvit Njord

2005

2006

2007

• 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

• 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

• 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

2008 • 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

PL530 PL448B PL488 PL448 PL394 PL110C PL230 PL110B

PL326 PL107B PL107C PL469 PL348 PL328 PL107 PL377S PL153B PL423S PL090D PL289 PL090C PL090B PL376 PL153 PL187 PL025

Vega South Gjøa Fram Gudrun Snøhvit Njord

2009 • 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

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

Gygrid Noatun Astero Vega South Gjøa Fram Gudrun Snøhvit Njord

Hyme Noatun Astero Vega South Gjøa Fram Gudrun Snøhvit Njord

2010

2011

2012

• 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) • First year of full operatorship of Gjøa. Safe and stable pro duction throughout the year. • Acquired 20% additional ownership in Njord, making GDF SUEZ the largest owner with 40% WI

• 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

GDF SUEZ E&P Exploration and production

GDF SUEZ E&P Exploration & Production represents a key activity in the strategic integration of the GDF SUEZ group across the gas 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 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 1 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.

6 5

AFRICA (20%)

GERMANY (14%)

NETHERLANDS (11%)

OTHERS (10%)

UNITED KINGDOM (7%)

Germany 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 570 employees, the Lingen-based company generates about 17% of the domestic oil production and 10% of the gas production. The total production was3about 8.8 mboe in 2012. GDF SUEZ E&P Deutschland GmbH 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.

5 6 1 Reserves (proven 4 + probable)

Production areas Production Areas Natural gas and oil. Geographical breakdown. TOTAL PRODUCTION 2012: 54.9 MILLION BOE.

NORWAY (46%)

NETHERLANDS (30%)

GERMANY (16%)

AFRICA (4%)

UNITED KINGDOM (3%)

OTHERS (1%)

10 9

Production Areas

United Kingdom

8 The Netherlands

2 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. Since entering the UK in 1997, the company has built a substantial portfolio of assets comprising 1 around 50 licenses, 19 as operator. In the 27th licensing round, at the end of 2012, the company was awarded its first license as operator in the West of Shetlands. Cygnus and Juliet in the SNS are GDF SUEZ E&P UK’s main10operated developments; both are in the construction phase. Cygnus is the 9 largest gas discovery in the SNS in the last 25 years. Balanced portfolio The companysales also has an exciting portfolio of discoveries including the operated Faraday and Jacqui/Austen projects in the CNS, and conducts 8 a continuous drilling programme of exploration, 7 appraisal and pre-development wells. The company 1 is a partner in two pipeline systems, ETS and CMS, 6 and has a workforce of over 290 people in offices in London 5 and Aberdeen.

7 GDF SUEZ E&P Nederland B.V. is the largest 6 Dutch Continental offshore gas producer on the Shelf (DCS). Operating in a mature area, the 5 company is still discovering substantial reserves due to an extensive drilling programme. Currently 4 operating more than 30 production platforms, the company forms a vital part of the provision3 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 term gas supply GDF SUEZ E&P NederlandLong 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.

5 6 1

ves (proven + probable)

TOTAL RESERVES 2012: 836 MILLION BOE. 3 1 NORWAY (38%)

In 2011, China Investment Corporation became a partner of GDF SUEZ by acquiring a minority stake of 30% in GDF SUEZ E&P International SA. The strategic partnership between GDF SUEZ (70%) and China Investment Corporation (30%) 2 reinforced our financial strength and offers new opportunities to the E&P teams.

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

Snøhvit

Njord

INDONESIA Gjøa Fram

Offshore Netherlands

NORWAY

GREENLAND

Nogat

Southern Gas Basin

NETHERLANDS

UNITED KINGDOM GERMANY

Pays du Saulnois

USA

Altmark Offshore Germany Onshore Germany Römerberg

FRANCE

AUSTRALIA AZERBAIJAN

Absheron

ALGERIA

Touat

Sud-Est Ilizi LIBYA

Onshore Libya Offshore Mauritania

West Burullus EGYPT

NW Damietta Ashrafi

Alam El Shawish West

Offshore Qatar QATAR

MAURITANIA

IVORY COAST

Foxtrot

Other regions GDF SUEZ is also present in Algeria, the Ivory Coast, Mauritania, Libya, Azerbaijan, United States, Qatar, Australia, Indonesia, France 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; one in 2008 and a second in 2010. The development of both discoveries is now envisaged. Additional drillable prospects have been matured for 2012-2013. The first of these drilling prospects spudded in November 2012. 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 a gas production startup in 2010, a second development phase was sanctioned in 2011 to increase gas production by 2014. 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 order to further develop, a full-fledged affiliate was established in 2009.

• Algeria: Since 2002 the Group has been the operator of the Touat permit in Algeria, alongside Sonatrach. The development plan was approved in 2009. The estimated 2P reserves are 68.5 billion m3 of natural gas and 8.5 million barrels of condensates. At phase plateau, production should reach 4.5 billion m3 per year. The first production drilling began in July 2012, followed by the call for tenders to build the main gas treatment plant. The Group is also partner in the Sud-Est Illizi license: a discovery of natural gas was made in 2012. • Mauritania: GDF SUEZ owns stakes in two offshore blocks: 24% in block 1 and 12.85% in block 7. • Ivory Coast: GDF SUEZ owns 100% of the company ENERCI, which holds 12% of an offshore production facility. This facility supplies 60% of the country’s needs. The authorisation to produce the Manta discovery was delivered by Ivorian authorities and the development of the Marlin discovery was decided. • Libya: GDF SUEZ holds 20% of a license which includes three onshore blocks. • United States: GDF SUEZ launched the abandonment process of its last asset in the Gulf of Mexico. This process should end in May 2013. • Azerbaijan: In 2009, GDF SUEZ acquired a

•

20% stake in the Absheron offshore block in the Caspian Sea. GDF SUEZ announced a discovery on June 2012 following extremely promising results on the exploration well ABX-2. T1, drilled in 2011 by Total (operator) on the Absheron license in the Caspian Sea. The resource potential is between 150 and 300 billion cubic feet of gas and associated condensates. Qatar: GDF SUEZ is the operator of block 4 located within the northernmost sector of Qatar offshore. On July 2012, Petrochina entered in the block with a stake of 40%. The block contains several prospects and two wells will be drilled in 2012 and 2013 in the Pre-Khuff and the Post-Khuff formations. Australia: In 2009, GDF SUEZ acquired a 60% stake from Santos in each of three offshore gas fields (Petrel, Tern and Frigate) located in the Bonaparte Basin in Australia. KBR and Technip were awarded contracts for the concept definition of the Bonaparte LNG project. Indonesia: GDF SUEZ holds two licenses at different exploration and development stages in the 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 launched a call for tenders for FEED-EPCI end of July 2012. Greenland: GDF SUEZ holds a 30% stake in two offshore exploration licenses in blocks 5 and 8, located in Baffin Bay.

GDF SUEZ group Worldwide presence

1 208 TWH (1)

NORWAY (26%)

EGYPT (4%)

RUSSIA (17%)

YEMEN (4%)

ALGERIA (11%)

UK (4%)

NETHERLANDS (10%)

UNSPECIFIED (10%)

TRINIDAD & TOBAGO (5%)

10 OTHERS (9%)

10 9

292 SHORT-TERM

NON REGULATED

686

686 LONG-TERM

609

158

168

251

(Key accounts, non regulated retail)

E&P PRODUCTION

THIRD PARTY 1

4 3

GAS TO POWER (INTERNAL) Gas to power – merchant

CONTRACTS

5 4

609

292

1 208 TWH (1)

Gas to power – PPA

168

168 OTHERS

Gas supply portfolio

REGULATED (French retail & European regulated retail) OTHERS

Gas sales portfolio

Long term Long gas term supply gas supply

GDF SUEZ group

(1) Group share

GDF SUEZ develops its businesses (electricity, natural gas, 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 maximising the use of resources.

Key Group figures The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and lowemission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services. GDF SUEZ employs 219,300 people worldwide and achieved revenues of € 97 billion in 2012. 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, ASPI Eurozone, Vigeo World 120, Vigeo Europe 120 and Vigeo France 20.

Power

• 219,300 employees throughout the • No. 1 independent power producer (IPP) world in the world. – incl. 61,300 in electricity and gas, • No. 1 producer of non-nuclear electricity – 78,400 in energy services, in the world. – and 79,600 in environmental services. • No. 1 independent power producer (IPP) • € 97 billion in 2012 revenues. in the Persian Gulf region, in Brazil and • A presence in close to 70 countries. in Thailand. • € 7-8 billion of investment per year from • 116 GW of installed power-production 2013 to 2015. capacity. • € 11 billion in asset optimisation from • 10 GW of capacity under construction. 2013 to 2014. • 50% increase in renewable energy • 1,100 researchers and experts at 9 R&D capacity between 2009 and 2015. centres

NORTH AMERICA:

EUROPE:

6,200 € 5,5

189,850 € 77,1

13.4 0.4

52.3 1.7

EMPLOYEES

BILLION 2012 REVENUES

GW INSTALLED

GW DURING CONSTRUCTION

ASIA & PACIFIC:

AFRICA:

6,300 € 0,9

SOUTH AMERICA:

4,900 € 4,9

EMPLOYEES

BILLION 2012 REVENUES

0.3

BILLION 2012 REVENUES

12.3 4.7

GW DURING CONSTRUCTION

12,050 € 8,6 EMPLOYEES

BILLION 2012 REVENUES

37.8 2.5

GW INSTALLED

GW DURING CONSTRUCTION

GW INSTALLED

Total revenues, employees and capacity per region: REVENUES: € 97 billion EMPLOYEES: 219 300 CAPACITY: 116 GW installed, 10 GW during construction

GW DURING CONSTRUCTION

Natural gas

LNG

• A supply portfolio of 1,208 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. • 344 exploration and/or production licenses in 16 countries. • 836 Mboe of proven and probable reserves.

• 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. • 1,300 sites throughout Europe. • 180 district cooling and heating networks operated throughout the world. • 48 public-private partnerships across Europe.

• No. 2 supplier of environmental services in the world. • 97 million individuals supplied with drinking water. • 57 million individuals provided with waste services. • 66 million individuals provided with sanitation services.

Note: All figures at 31 desember 2012.

Energy services

Environmental services

Year 2012 Activities

Activities Focus areas

Gjøa

Snøhvit/Barents Sea

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.

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

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.

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.

Gjøa area

Norwegian Sea

Greenland

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

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

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

The Njord field, in the Norwegian Sea, is already a key contributor to GDF SUEZ E&P Norge’s total production of oil. Gas export from the field started in December 2007.

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.

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

New discoveries close to the Njord field may generate new development options with benefits also to the lifetime of the Njord field and facilities.

The award of the Baffin Bay licenses represents a significant expansion of GDF SUEZ’s acreage in the highly prospective Arctic region.

Year 2012 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 The Gjøa field development project was completed, and new export records were reached for both oil and gas. 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. At the start-up of Gjøa, five wells drilled by the rig Transocean Searcher were ready for production. During 2011, Transocean Searcher drilled and completed three more wells and during 2012 the three last wells were finished. The drilling programme of 11 wells in total for Gjøa was completed in July 2012 and Transocean Searcher left the Gjøa field. In 2012, Gjøa contributed production of 13.6 million barrels of

oil equivalents, representing 53% of the affiliate’s total production. The production from the field was approximately 15% above the planned production in spite of unexpected shut-down events. The Gjøa reservoir performance has been excellent since the start-up of production in November 2010. Based upon production history, field reserves have been upgraded by approximately 37 million barrels of oil equivalents compared to the reserves estimated at the PDO submission. 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. Early in January, 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, the gas export capacity of 17 M Sm3/d, equal to the platform design basis, was attained. 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.

Year 2012 Gjøa turnaround

First turnaround and Gjøa 1st stage separator repair The very first turnaround for Gjøa was executed in August-September. The turnaround was coordinated with the total plant shutdown at St. Fergus, which was planned to last for 18 days, from 23 August to 10 September. During the turnaround, the main scope at Gjøa was removal of the silencer upstream of the new gas export riser, repair of the flare ignition system, replacement of the turbine starter and inspection of some separators and vessels. A total of 8,300 manhours were planned for the shutdown period at Gjøa. The turnaround was complet-

ed according to schedule without any serious incidents or accidents.

of November and the platform reached the design gas export capacity of 17 M Sm3/d.

The inspection programme that was performed during the turnaround revealed welding defects in the 1st stage separator. As a result of this, production was started up after the shutdown without this separator in operation, resulting in lower gas production than planned. Inspection and repairs were carried out and the separator was put back in operation by the end

Overall, this has been a busy year with two extensive shutdown periods. However, with high platform regularity and good delivery from the production wells, the remainder of the year resulted in high production. The results for Gjøa in 2012 are very good, with no serious incidents or accidents.

Year 2012 Barents Sea and Snøhvit

Licenses in the Barents Sea

GDF SUEZ PL612

PL610

PL607

PL230

GDF SUEZ Operated SNØHVIT

GDF SUEZ Interest HEILO

Licensed

GOLIAT

Barents Sea exploration The Barents Sea remains one of the core areas for GDF SUEZ E&P Norge. In 2012, the company, as operator of PL607, started planning an exploration well on the Byrkje prospect. PL607 is located 115–120 km to the northwest of the Snøhvit field, and 65 km west of the Skrugard oil and gas discovery. The partner in PL607 is Concedo. Well planning on the Byrkje prospect started and a site survey was acquired over the Byrkje prospect in November 2012. On behalf of the license, GDF SUEZ E&P

Norge secured a rig for the drilling operation. The well will be drilled with the semisubmersible rig Transocean Barents in late 2013 or early 2014. As the operator for PL610, GDF SUEZ E&P Norge acquired, on behalf of the partnership, a large 3D seismic

survey (976 km2) in summer 2012. The partners in PL610 are Spring Energy, Rocksource and Valiant Petroleum.

taken in the GDF SUEZ E&P Norge-operated license PL530 to surrender the license, effective in 2013.

A reprocessing of 2D seismic data was completed in the GDF SUEZ E&P Norge-operated license PL612.The partners in PL612 are Statoil and Petoro. A unanimous decision was

A decision was taken to drill a well in Southern Nordkapp Basin in the license PL230, where GDF SUEZ E&P Norge has 15% equity.

Year 2012 Barents Sea and Snøhvit

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 Major investments still await Snøhvit. 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 4.5 million barrels of oil equivalents in 2012, representing 18% of GDF SUEZ E&P Norge’s total production. GDF SUEZ lifted a total of six LNG cargoes from the Snøhvit plant in 2012. The LNG-plant experienced several unplanned shutdowns

during 2012, resulting in a regularity of 73%. The Snøhvit Improvement Project (SIP II) was launched in the autumn with the aim of improving the overall performance of the plant. The intention is to use the scheduled turnaround in 2014 to implement the improvement remedies that require a shutdown of the plant. Snøhvit Future Development (SFD) In a comprehensive study, three alternative future

development scenarios for Snøhvit were evaluated; 1) Continue to produce and develop the unit in accordance with the approved PDO (Plan for Development and Operation), 2) Construction of a new LNG train (Train II) at Melkøya with the same capacity as the existing train, 3) Construction of a Dew Point Control facility and a new pipeline from Melkøya down to Heidrun in the Norwegian Sea. In November, due to lack of a robust business case, the license concluded not to

continue pursuing a Train II solution at this time and the SFD project was demobilised. 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 North structure. Subsequent to this the Askeladd structure will be developed.

Year 2012 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 The 2012 "year of repair" was a high activity period on Njord. This included the tie-in of the Hyme field, modifications for low pressure production, riser replacement and structural maintenance and repair – all carried out with excellent HSE results. 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 Norge’s portfolio and one of our five producing assets. Njord contributed a total oil production of 3.5 million barrels of oil equivalents in 2012, representing 14% of GDF SUEZ E&P Norge’s total production. 2012 was a high activity year including many projects and general platform maintenance. To secure effective execution, a floatel was hired for four

months from early August, providing 450 extra beds. The scope included replacement of three Njord risers and the tie-in of risers for the Hyme project. In early November, the Floatel Superior was evacuated and transported to shore after an anchor chain punctured one of the ballast tanks. While the floatel was back on Njord late November, the incident meant that planned activities had to be rescheduled.

The large scope and repair activities resulted in several extended shutdown periods and lower production than planned. However, the work has significantly improved the technical integrity of the installation, making it more robust for the future – in line with an ambition to continue operations at Njord until 2030.

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. It is now being developed with one producer and one water injector as a tie-in to Njord A. Its project execution as a so-called “fast track” project has been very successful.

Production from Hyme started up at the end of February 2013. Hyme is the first project where GDF SUEZ E&P Norge has been involved throughout the entire phase – from aquisition, exploration and discovery, to development and production. Projects: The North West Flank (NWF) project consists of two

extended reach wells drilled from the Njord platform to a downthrown fault block where a gas discovery was made in 2007. Topside modification work and drilling the top-hole sections started in late 2011. Due to new projects and high activity on the Njord platform, start-up of NWF drilling and production has been postponed to 2014.

The Njord Low Pressure Production (LPP) project was approved in May 2011 and is a topside modification project on the Njord platform to add reserves by enabling production against a lower inlet separator pressure. The project was completed during the 2012 shutdown.

Year 2012 The Norwegian Sea

Norwegian Sea exploration A decision was taken to drill a well in license PL348, where GDF SUEZ E&P Norge has a 20% equity stake. In January 2013, GDF SUEZ E&P Norge was awarded two new licenses, with a role as a partner, in the Norwegian Sea through the APA 2012 Licensing Round. 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 3 years from award. GDF SUEZ E&P Norge was also awarded a 30% share in license PL701, where the work commitment is to

reprocess 3D seismic and to decide to drill or drop the license within 2 years of award.

Year 2012 The North Sea

1975

25%

2010

2014

The Gudrun field discovery

Interest held by GDF SUEZ E&P Norge

PDO approved

Planned production start

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 Gudrun is not only our largest ongoing project, but it is also on schedule and cost – despite current challenges in the industry. 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 (the Storting) 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 transported onshore to the Kårstø processing plant. The gas will be mixed with Sleipner gas before entering the Gasled system. The project is now in an intensive period with major assembly and mechanical completion of the deck structure at Haugesund, modification of facilities at Sleipner A and at Kårstø to accommodate hydrocarbons from Gudrun, and drilling of production wells with the drilling unit West Epsilon. During the summer of 2013, the deck will be transported from Haugesund to Gudrun

and lifted on to the already installed jacket structure. 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 summer 2012. Tie-in operations are scheduled for 2013. • Intensive construction work has been carried-out in various locations around the world, including Norway, Thailand and Poland. • The Sleipner and Kårstø facilities are both under-

going modifications in order to process Gudrun fluids. • Drilling operations started in September 2011 and will continue through 2015 with a minimum of seven wells to be drilled. Production start-up is expected in the first quarter of 2014. Additional work is being performed to assess future tie-ins to the Gudrun platform. This work includes the Gudrun East (former Brynhild) discovery made in 2010. It is expected that a development decision will be made in 2014.

Fram Production from the Fram field continues at a high level and contributed a total of 3.0 million barrels of oil equivalents in 2012, 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 9 million barrels of oil equivalents, and production start-up is expected in 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 is planned for 2013 to rectify the situation. A redetermination conducted in 2012 reduced GDF SUEZ

equity from 6% to 5.475% in the Vega Unit. In 2012 Vega Unit produced a total of 0.9 million barrels of oil equivalents, representing 3.5% of the total GDF SUEZ production. North Sea exploration The Gjøa-Fram and Gudrun areas remain core areas for GDF SUEZ E&P Norge, and exploration efforts to expand our portfolio in these areas has continued.

Year 2012 The North Sea

Gudrun modules departing from the shipyard in Thailand.

In January 2012, GDF SUEZ E&P Norge was awarded five new licenses in the North Sea. Two operatorships were awarded in PL636 (50% equity) and PL634 (40% equity), located respectively to the east and west of the Gjøa field. A role as a partner and 20% equity was awarded in PL618, PL630 and PL637. In 2012 a decision was taken to drill an exploration well on a prospect known as Kon-Tiki,

in the GDF SUEZ E&P Norge-operated PL153 (Gjøa field) and a site survey was acquired over the prospect in September 2012. On behalf of the license, GDF SUEZ E&P Norge secured a rig for the drilling operation. The well will be drilled with the semisubmersible rig Transocean Barents in 2013. 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 license 686, the work commitment is to reprocess 3D seismic data, perform geological and geophysical studies, consider electromagnetic data acquistion and decide to drill or drop the license within two years from award. The work commitment

in license 687 is to acquire new 3D seismic data and consider reprocessing 3D seismic, undertake geological and geophysical studies and decide to drill or drop the license within 3 years from award.

Year 2012 Greenland

2010

26.25 % 2015

GDF SUEZ E&P Greenland AS established

Two 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 In the summer of 2012, 3D seismic and shallow coring operations were conducted. 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 730N 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 2012 activities were centered around two operations undertaken during the summer months, a 3D seismic acquisition over parts of blocks 5 and 8 and a shallow coring campaign. During a two and a half month campaign, the licenses acquired in excess of 7,000 km2 of 3D seismic data in the ‘Anu’ and

‘Napu’ license blocks. The seismic data was collected by two state-of-the-art ICE-1A class seismic vessels, the M/V Polarcus Amani and M/V Polarcus Samur. During the same period, on behalf of all the Baffin Bay licenses, the JOIDES Resolution (JR) carried out a 62-day stratigraphic coring campaign. The coring campaign is considered to have been a great success, especially given the tough environmental conditions faced, and the high densities of icebergs encountered. The 13 cores recovered successfully generated a stratigraphic column of ~ 2,000m

and this information will now be utilised in the ongoing evaluation of the prospectivity of the area. The partnerships in the Greenland licenses are as follows: • Block 5 (Anu): Shell Kanumas A/S, operator (41.125%), Statoil Greenland AS (20.125%), GDF SUEZ E&P Greenland AS (26.25%), and Nunaoil A/S (12.5%) • Block 8 (Napu): Shell Kanumas A/S, operator (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

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 company-operated 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 â&#x20AC;&#x153;Everybody needs somebodyâ&#x20AC;? and encourage everyone working

Year 2012 Sustainable development

HSE performance 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.

GDF SUEZ E&P Norge assumed operatorship for Gjøa in November 2010. During the two first full calendar years of production there were no serious HSE incidents at Gjøa. In 2012 GDF SUEZ E&P Norge completed the first large turnaround on Gjøa with great results. Over 8,500 hours were completed with no HSE incidents. During the turnaround, a fault was revealed on the Gjøa 1st stage separator. A second turnaround to correct this was scheduled and completed with success.

Area risk charts have been revised and serve as a practical reference in the planning of work. GDF SUEZ E&P Norge ended drilling operations from Transocean Searcher on the Gjøa field during the summer. No serious incidents were recorded in 2012, but there were three minor injuries. Injuries occurred during operations at Gjøa. Still, the HSE results for all of the company’s operations show a serious event frequency of 0.0 and a total recordable injury rate of 3.0,

which is below the target values of 1.3 and 4.8, 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 are good. Health checks of exposed groups and risk communication of working environment factors have been prioritised tasks in this respect.

Year 2012 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 radarbased oil spill detection system. The medical emergency preparedness on board Gjøa, in cooperation with on-call duty doctors

Environment onshore, has proven to function very well when needed. 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 exploration wells scheduled for 2013/2014.

The production drilling activity on Gjøa was completed in 2012 and all drilled wells are now in operation. On Gjøa, 94% of chemicals discharged to sea were green chemicals. A total of 1,661 tonnes of green, 101 tonnes of yellow and 0.00042 tonnes of red category chemicals were discharged to sea in connection with production and drilling operations at Gjøa. There was no discharge of drill cuttings to sea in 2012 as all drill cuttings (water based and oil based) were sent to shore for treatment and final disposal.

A total of 162 tonnes of ordinary waste and 8,264 tonnes of hazardous waste were generated on Gjøa. 91% of the hazardous waste constitutes of slop/mud/cutting from the drilling operations. The waste recycling rate of ordinary waste at Gjøa was 96% and the waste sorting rate was 66%. There were three accidental spills to sea on Gjøa during 2012, one of which was related to the drilling rig Transocean Searcher. Two were spills of hydraulic fluid

and one was a small spill of crude oil. Offshore emissions to air included 175 tonnes of NOx and 106,600 tonnes of CO2, which was a significant decrease from 2011 mainly due to the reduction in drilling operations.

permit and are reported to the environmental authorities according to current regulations.

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 operations at Gjøa were well within the discharge

Year 2012 Community relations

Community relations GDF SUEZ E&P Norgeâ&#x20AC;&#x2122;s main contribution to society is safe, reliable and economic operations in all our activities.

Policy

Donations

Sponsorship

GDF SUEZ E&P Norgeâ&#x20AC;&#x2122;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.

On behalf of our employees, GDF SUEZ E&P Norge gives Christmas donations to a selection of charitable organisations. In 2012 the Norwegian Childhood Cancer Organisation was the recipient.

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.

01 ONS GDF SUEZ E&P Norge was present at the Offshore Northern Seas (ONS) exhibition 2012. Our stand was visited by industrial stakeholders, parliamentarians and politicians from all over the country. Several groups were given presentations on our activities.

02 FTIF – Florø Turn & Idrettsforening

03 Den Norske Turistforening

04 International Chamber Music Festival

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.

First established in 2003, our cooperation with Den Norske Turistforening (DNT/The Norwegian Trekking Association) continued in 2012. 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. As part of the cooperation with DNT, GDF SUEZ E&P Norge supported projects by Stavanger Turistforening, Flora Turlag and Hammerfest og Omegn Turlag.

GDF SUEZ E&P Norge has been one of the main sponsors of the International Chamber Music Festival (ICMF) since 2003. In 2009, 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.

Year 2012 Our team

Our team As per February 2013.

Management

Human Resources

Communication

HSE&Q

MANAGEMENT Management

Ulf Rosenberg Head of Communication

Eva Fagernes Head of HSEQ

Randi Eltvik Larsen Advisor Quality

Anders R. Tharaldsen Advisor HSE - Risk Mgmt

Atle Sonesen Managing Director

Anne Blomberg Advisor Communication

Elin Witsø Leader HSE Operations

Håvard Kalve Advisor Quality

Helen Lima Jensen Coordinator Tech Doc & LCI

Kari Samnøen Adv Management Support

Cathrine Andresen Advisor Communication

Tor Ove Holsen Leader D&I Management

Stig Sandal Adv Emergency Management

Trond Wefring Coordinator Tech Doc & LCI

Karel Schothorst Corporate Advisor

Cecilia Sandsmark Coordinator Communication

Wenche R. Helland Advisor Environment

Sigbjørn Dalane Adv Health & Work Environment

Jannecke A. Moe Advisor Environment

Ole Kjetil Handeland Advisor HSE

Communication

HSEQ

Human Resources Magnar Støle Head of Human Resources

Finance & Admin.

Anne Svendsen Leader HR Operations

Johannes Finborud Chief Financial Officer

Tore Jan Landmark Leader Office Facility

Olivier Bou Advisor ICT

Tom Baug Coordinator SAP

Brit Jorunn Marker Leader Employment Conditions

Kjersti Bergsåker-Aspøy General Counsel

Gert Tjensvoll Leader Economics

Øystein Aspøy Coordinator Industrial IT

Rasmus Osaland Economist

Bjørn Ravndal Sr Advisor C&P Management

Sigurd Helgesen Manager Tax

Knut-Olaf Rusten Manager ICT

Anders Erik Haugen Manager Purchase

Lars Christian Takla Business Planner

Aina Skretting Østrått Adv Resource Management

Tone Lise Pedersen Manager Finance

Gaute Barstad Leader ICT

Jan H. Standal Advisor Purchasing

Torhild S. Jensen Coordinator Administration

Kari Ingunn Nystein Advisor HR Applications

Livar Haaland Manager Procurement

Nils Ivar Sørensen Advisor ICT

Marita O’ Reilly Purchaser

Nina E. Grundetjern Coordinator Administration

Oddvar Aarberg Manager Logistics & Base

Tommy Rafos Advisor ICT

Stian Nielsen Purchaser

Renate Horpestad Coordinator Administration

Finance & Admin.

Year 2012 Our team

Asset

Tine Harstad Eggen Legal Counsel

Eirik Sørensen Leader Operated JVs

Lisbeth Helle Controller

Kay Zaccarini Controller

Bjørn Hereid Coordinator Material

Renate Solheim Lian Advisor Tax

Anne Selbæk Leader Fin Application & GA

Riku Kangas Controller

Kjetil Sande Ldr Material Mgmt & Log Op

Camilla Kruse Coordinator Material

Rune Haukebøe Manager Contracts

Trygve Bø Leader Financial Reporting

Marie Guldbrandsen Westre Controller

Vibeke Mowatt Leader Air & Mar Operations

Laila Sælemyr Bjerknes Purchaser

Jan-Tore Storslett Specialist Contracts

Randi Følgesvold Controller

Aleksandra Uzunova Controller

Knut Arne Eltvik Advisor Marine Operations

ASSET Asset

Sissel Dyskeland Advisor Contracts

Eirik Matre Controller

Niki Tsakiroglou Controller

Marie Arnstad Coordinator Air Transport

Geir Pettersen Head of Asset

Jan Gunnar Kristoffersen Administrator Contracts

Juliette Bou Controller

Johanna Röman Controller

Geir Hillersøy Advisor Material

Kjell Ola Jørgensen Project Manager

Erik Schiager Advisor Asset Management

Mehryar Nasseri Senior Engineer Drilling

Lise Schiøtz Senior Geologist

Matthew G. Reppert Principal Petrophysicist

Philippe Vincent Senior Reservoir Engineer

Tom K. Steinskog Leader Tech & Development

Sigbjørn Kalvenes Mgr Petroleum Technology

Caroline Haugvaldstad Geologist

Neal Hewitt Principal Engineer Production

Hotler Samosir Reservoir Engineer

Gerhard V. Sund Manager Drilling & Well

Kjell Y. Buer Chief Geologist

Cecile Damstra Chief Geophysicist

Arne Crogh Senior Engineer Production

Andrea Reinholdtsen Reservoir Engineer

Tommy Andreassen Drilling Superintendent

Gildas Lageat Senior Geologist

Jochen Rappke Principal Geoscientist

Siv Kirstin Borgersen Senior Engineer Production

Patrick Hamou Manager Asset Area

Bjørn S. Ellingsen Drilling Superintendent

Wouter Hazebelt Senior Geologist

Roy Hoel Senior Geophysicist

Mailin Seldal Principal Reservoir Engineer

Carl Otto Houge Manager Asset Area

Karstein Hagenes Principal Engineer Drilling

Steve Bryant Senior Geologist

Cristophe Courtial Geophysicist

Torunn Haugvallstad Senior Reservoir Engineer

Erling Kindem Mgr Area Non-op Ventures 47

Year 2012 Our team

Exploration

Turid Moldskred Mgr Area Non-op Ventures

Jan Åge Greger Executive Advisor Exploration

Philip Hughes Senior Geophysicist

René Thränhardt Senior Geologist

Magali Romanet Senior Geologist

Viggo Dybsland Olsen Senior Engineer Facility

Paul Milner Manager New Venture

Fanny Marcy Courtial Senior Geophysicist

Tove Thorsnes Senior Geologist

Rutger van der Vliet Geologist

Siri Lunde Sr. Engineer Development

Britt Heskestad Mgr Barents Sea/Vøring

Pauline Convert Geophycisist

Wim Lekens Senior Geologist

Arjen Wielaard Geologist

Marc Rousselet Engineer Field Development

Bjørg Solheim Mgr North Sea/Haltenbanken

Alv Aanestad Senior Petrophysicist

Gunilla A. Steen Senior Geologist

Jan Willem Achterberg Leader Data Management

EXPLORATION Exploration

Odd Fuglestad Principal Geophysicist

Nicolas Nosjean Senior Geoscientist

Philippe Bailly Senior Geologist

Marianne Førland Advisor Technical

Tina R. Olsen Head of Exploration

Eldbjørg Bø Senior Geophysicist

Jörgen Samuelsson Principal Geologist

Sarah Robertson Senior Geologist

Frode Gjerde Advisor GIS

Gas & Commercial

Operations

Anders Ringen Trainee Geoscience

Ove Harbo Sr Adv Business Development

Antoine Sabatier Adv Sales & Transportation

Per Langhaug Offshore Installation Mgr

Oddgeir Madsen Team Leader Deck & Marine

Gas&&COMMERCIAL Commercial GAS

Morten Philbert Advisor Gas Operations

Operations OPERATIONS

John Winterstø Offshore Installation Mgr

Ørjan Midttveit Team Leader Deck & Marine

Eric Robial Head of Gas & Commercial

Nils-Erik G. Lomheim Adv Upstream Commercial

Hilde Ådland Head of Operations

Pål Hamre Team Ldr Op & Maintenance

John Arne Pedersen Team Leader Deck & Marine

Kjell Arne Abrahamsen Leader Upstream Commercial

David Gazel Mgr Sales & Transportation

Ingrid R. Devold Torjussen Manager Technical

Jens Petter Gjærum Team Ldr Op & Maintenance

Bente Brinchmann Team Ldr Health & Work Env

Eirik Vestersjø Leader Infrastructure

Natalia Vennikova Adv Sales and Transportation

Kick Sterkman Offshore Installation Mgr

Nils Martin Bakka Team Ldr Op & Maintenance

Jan Turi Team Ldr Health & Work Env

Ole Johan Østvedt Mgr Business Development

Guillaume Vens Adv Sales and Transportation

Arild Jåsund Offshore Installation Mgr

Bjarte Rimereit Team Ldr Op & Maintenance

Bjørn-Peder H. Johansen Team Ldr Health & Work Env 49

Year 2012 Our team

Erik Winge Ldr Planning & Project Controls

Olav Dolonen Leader Process

Ingvald Sviland Senior Engineer Electrical

Per Morten Kyvik Senior Engineer Automation

Eirik Høvring Engineer Operations

Dag André Bogstrand Adv Project Controls

Clarence Soosaipillai Leader Subsea

Steinar Andersen Senior Engineer Automation

Elin K. Sletten Senior Engineer Telecom

Michael B. Pettersen Engineer Technical Safety

Bjørn Løkkebø Halsnes Planner

Arne Bekkeheien Ldr Mechanical & Maintenance

Torkel Fagnastøl Sr Project Engineer Mod

Knut Ytre-Hauge Eng Electrical & Instrument

Aage Torvanger Engineer Inspection

Jone Harestad Senior Engineer Operation

Hans Chr. Rentsch Sr Eng Structure/Inspection

Philip Chan Senior Engineer Metering

Dina Kayrbekova Engineer Mechanical

Jon Kristian Loftås Engineer Electrical

Kai Solheim Project Ldr Modifications

Midhat Durakovic Sr Eng Maint Technical Safety

Arild Sunde Senior Engineer Process

Are Høivik Engineer Mechanical

Steinar Hellesøy Engineer Process

Årstein Bringsvor Leader Auto / El / Tele

Harald Flesland Sr Engineer Maintenance

Per Kristian Roald Senior Engineer Subsea

Åse Helland Sørskår Engineer Process

Gaute Fjeld Engineer HVAC

Jonas Wignäs Engineer Maintenance

Ove Lid Technician Process

Ingunn Frette Technician Process

Gunnar Løvås Technician Process

Jan Rasmussen Technician Process

Elin Klemp Trainee Engineer Process

Kjersti M. Byrkjeland Technician Process

Joakim Borgen Technician Process

Ståle Johansen Technician Process

Roger Aase Technician Process

Frank Nagy Technician Process

Tom Borger Nielsen Technician Process

Martha Viste Technician Process

Svein Arvid H. Nordal Technician Process

Øyvind Torjussen Technician Process

Bernt Økland Technician Process

Trond Myklebust Technician Process

Stig Erling Sande Technician Process

Cato Strømsnes Technician Process

Nils Stian Finnseth Technician Process

Dagfinn Ommundsen Technician Process

Jan Rune Kalsvik Technician Process

Aimée R. Lobben Technician Process

Lars Westbye Technician Process

Jostein B. Nilssen Technician Process

Vidar Mostrøm Technician Process

Åse Andersen Technician Process

Rune Dønheim Technician Process

Hans Ottar Moen Technician Process

Atle Hovstad Technician Process 51

Year 2012 Our team

Jan Berntsen Technician Process

Ove Lindanger Technician Automation

Sindre Lysgård Technician Automation

Per Inge Hole Technician Electrical

Roar-Helge Torheim Technician Mechanical

Gro W. Røtvold Coord Deck & Material

Jone Askeland Technician Automation

Roger Dahlgren Technician Electrical

Vidar Rasmussen Technician Mechanical

Vidar Vold Technician Mechanical

Brynjar Joa Coord Deck & Material

Ørjan Bye Skulbru Technician Automation

Ingar Hagen Technician Electrical

Chris-André Valle Technician Mechanical

Kjell Magne Miljeteig Technician Mechanical

Rune Rogstad Coord Deck & Material

Pierre Stig Ingvar Lindberg Technician Automation

Vidar Westin Technician Electrical

Svein Arne Fosshaug Technician Mechanical

Per R. Jeffrey Stiansen Technician Mechanical

Tore Nordhasli Technician Automation

Ken-Widar Kydland Technician Automation

Gjert Ståle Olsen Technician Electrical

Steinar Rørvik Technician Mechanical

Bjørn Idar Sønning Technician Mechanical

Harry Jordalen Technician Automation

Kjetil Volden Technician Automation

Jostein Haugland Technician Electrical

Jan Sverre Sønning Technician Mechanical

Eric Pieter-Jan Krijger Technician Mechanical

Ronnie Bøe Viken Technician Mechanical

Gunnar Aakre Operator Deck & Crane

Bjørn Einar Ness Operator Deck & Crane

Trond E. Hagfjäll-Lande Opr Deck & Scaffolding

Johnny Lilleland Operator Deck & Crane

Tor-Arne Risvåg Opr Deck & Scaffolding

Erlend Vikedal Operator Deck & Crane

Ove Grønnevig Opr Deck & Scaffolding

Kjetil Bakhaug Operator Deck & Crane Håkon Emil Trondsen Operator Deck & Crane 53

Year 2012 Board of Directors’ report

Board of Directors’ Report 2012 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 2012 the Company portfolio contained 47 licenses on the Norwegian Continental Shelf, including shares in the Njord, Fram, Snøhvit, Gjøa, Vega Unit, Gudrun and Hyme fields. The Company is operator of the Gjøa field (PL153 and PL153B) which started producing in November 2010, and of exploration licenses PL530 Heilo, PL607 Byrkje, PL610 Kimbe, PL612 Nemo, PL634 and PL636. In addition, the fully owned subsidiary GDF SUEZ E&P Greenland AS is engaged in the exploration for and production of oil and gas in Greenland. The company has 2 licenses in Baffin Bay, block 5 Anu and block 8 Napu.

Exploration New acreage In 2012 the company was awarded three new partnership licenses and two new operatorship licenses in the APA 2011 licensing round. The operatorship awards included a 40% share in PL634 and 50% share in PL636 which are both in the Gjøa area. The partnership awards included a 20% share in PL618, a 20% share in PL630 and a 20% share in PL637, all three in the North Sea.

The company submitted a comprehensive application in the APA 2012 licensing round in the autumn of 2012. Awards were announced in mid January 2013 and the company was offered four new partnership licenses.

Development

Drilling The company has not drilled any operated explorations wells or participated in any exploration drilling during 2012. Several wells are planned for 2013 and 2014.

The PDO (Plan for Development and Operation) was approved in June 2010. Construction of the platform is done at various locations around the world, including Norway, Thailand and Poland. All modules have arrived Haugesund. The living

– The completion of the Gjøa field development and a successful first turnaround resulted in new export records for both oil and gas on Gjøa. – Jean-Marie Jacques Dauger

Gudrun The Gudrun development project is mainly on schedule, overall one month delayed. The total project progress and cost development is satisfactory.

quarter is in place and aligned with the utility module. One well is completed in 2012 and one well is in progress at year end. The drilling will continue until 2014 with a minimum of 7 wells to be completed. Production is expected to start in the first quarter of 2014. Njord North West Flank (NWF) The development of NWF was approved in April 2010 and by the end of 2012 the topside modifications are almost completed.

Jean-Marie Jaques 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 2012 Board of Directors’ report

The drilling of the NWF wells from the Njord platform is postponed due to the high activity level on other prioritized projects on the Njord platform. Start-up of the first production well is planned in 2nd half of 2014. Hyme Hyme is an oil discovery located 19 km east of the Njord field. The PDO was approved in June 2011. It is currently being developed with one producer and one water injector as a tie-in to Njord A. The project execution as a fast track project has been successful, and the expected production start-up is according to plan in Q1 2013. Snøhvit Future Development (SFD) In 2012 three alternative future development scenarios were evaluated; 1) Continue toproduce and develop the unit in accordance with the approved PDO, 2) Construction of a new LNG train (Train II) at Melkøya with the same capacity as the existing train, 3) Construction of a Dew Point Control facility and a new pipeline from Melkøya down to Heidrun in the Norwegian Sea. In November, due to lack

of a robust business case, the license concluded not to pursue a Train II solution further.

Operations Gjøa Total production from the Gjøa field in 2012 was 13.6 million boe or 37,260 boe per day. This represents 53% of the total production for the company. The drilling program with 11 wells in total was finalised in July 2012. In December 2012 the gas export capacity of 17 M Sm3/d was reached, and even exceeded, after replacement of one gas export riser late 2011 and the removal of the silencer upstream of the gas export riser during the first turnaround on Gjøa in 2012. Njord Total production from the Njord field in 2012 was 3.5 million boe or 9,589 boe per day. The total production from Njord is lower in 2012 due to high activity including many projects and general platform maintenance. The large scope and repair activities resulted in several extended shutdown periods and lower production than planned. However, the work

has improved the technical integrity of the installation making it more robust for the future – in line with an ambition to continue operations at Njord to 2030.

conducted in 2012 reduced GDF SUEZ equity from 6% to 5.475% in the Vega Unit.

Fram Total Fram field production in 2012 was 3.0 million boe or 8,219 boe per day. The performance of the Fram reservoir has been good. The expected decline in production due to pressure drop in the reservoir and increased water production has not yet occurred.

In accordance with the Accounting Act § 3-3a, we confirm that the financial statements have been prepared under the assumption of going concern. This assumption is based on profit forecasts for the year 2013 and the company’s long-term strategic forecasts. The company’s economic and financial position is sound.

Snøhvit Total production from Snøhvit was 4.5 million boe in 2012 or 12,329 boe per day. The LNG plant is struggling with operational challenges, and several unplanned shutdowns were experienced during 2012 resulting in a regularity of 73%. Vega Unit Total production from the Vega Unit in 2012 was 0,9 million boe or 2,466 boe per day. Production problems experienced in the Vega South wells led to Vega South being shut down during 2012. A redrill is planned for 2013 to rectify the situation. A redetermination

Going concern

Working environment At year end the company had 200 employees. In accordance with applicable laws and regulations the company registers its employees’ absence due to illness. During 2012 the absence due to illness has been 1.66% (2.60% in 2011). The company conducts an 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

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’.

the preparation of activity plans aimed at maintaining a good working environment. The conclusion from the last survey is that the working environment and general welfare in the workplace is good. In 2012 GDF SUEZ E&P Norge AS had no serious incidents and three minor injuries. Two of these three injuries led to lost time incidents (LTI). The two lost time incidents were: • Fractured finger – Gjøa • Burn injury on hand – Gjøa

Gender equality The Board of Directors and the Managing Director are 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. By year-end 61 of our 200 employees were women. The management team consists of nine persons of whom three are women. One of seven members

of the Board of Directors is a woman. 30 new employees were recruited in 2012, of which 11 are women and 19 men. All salaries are established without prejudice. Four employees work part-time and 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 systematically to promote the act’s purpose within our 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.

emphasized. A minor quantity of red chemicals was used and discharged in 2012. There was a discharge of yellow chemicals of 101 tons, well within the granted permit.

Environment Gjøa field (Gjøa Semi and Transocean Searcher) The Gjøa field is developed 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 operations also contributes to a reduction of environmental impact. The emissions and discharges to the environment from operations at Gjøa were well within the discharge permit and are reported to the environmental authorities according to current regulations. 94% of chemicals discharged to sea were green chemicals and are not expected to cause any environmental impact. Within GDF SUEZ the use of environmentally friendly chemicals is

There were three accidental spills to sea during 2012, one of which was related to the drilling rig Transocean Searcher. Two were spills of hydraulic fluid and one was a small spill of crude oil. The production drilling activity on Gjøa was completed in 2012 and all drilled wells are now in operation. There was no discharge of drill cuttings to sea in 2012 as all drill cuttings (water based and oil based) were sent to shore for treatment and final disposal. The Gjøa field generated 162 tons of normal waste and 8,264 tons of hazardous waste in 2012. The most important environmental indicators for emissions to air were: Flaring 2 mill Sm3 Fuel gas consumption 40 mill Sm3 Diesel consumption 3,058 tons CO2 emissions 107,700 tons NOx emissions 175 tons

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. 57

Year 2012 Board of Directors’ report

GDF SUEZ is a member of the NOx fund. Through payments to the NOx fund GDF SUEZ contributes to the funds available for initiatives to reduce NOx emissions in the industry.

Financial market risk The company’s financial result is affected by fluctuations in oil and gas prices and foreign currency 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. GDF SUEZ E&P Norge AS has established guidelines for entering into derivative contracts in order to manage the commodity price risk. To manage the commodities price risk GDF SUEZ E&P Norge AS enters into commodity based derivative contracts consisting of market swaps for oil and gas products. The risk associated with our counterparties’ inability to fulfil their obligations is considered low, as the company’s sales mainly are to companies within the Group and to other large

corporations. The company has not realised losses on receivables during preceding years. The total exposure related to currency, interest and price fluctuations is monitored and evaluated by the Group as a part of the overall evaluation of the Group’s total exposure. Possible actions are implemented at a Group level in accordance with existing procedures.

LNG in 2012. All gas was sold to other GDF SUEZ companies and amounted to NOK 3,861 million compared to NOK 3,296 million in 2011. The sale of NGL and LPG mix amounted to NOK 1,653 million in 2012 compared to NOK 1,258 million in 2011. A total of 4.3 million boe of these products were sold in 2012, higher than the 2.9 million boe sold in 2011.

Financial aspects The company produced a total of 25.5 million boe in 2012, an increase of 16% compared to 2011. This is primarily a result of increased production capacity on Gjøa compared to 2011. Total sales in 2012 amounted to 25.4 million boe giving total revenues of NOK 11,833 million. A total of 9.3 million bbls of crude oil and condensate was sold in 2012. Revenues from the crude oil and condensate sales were NOK 6,193 million compared to NOK 5,321 in 2011. The company sold 1.8 billion Sm3 of gas including Snøhvit

Net cash flow from operating activities in 2012 was NOK 6,105 million, compared to NOK 8,165 million in 2011. The investments in 2012 amounted to NOK 2,800 million, compared to NOK 3,049 million in 2011. The majority of the 2012 investments were in the ongoing development of the Gudrun and Hyme fields, production drilling on the Gjøa field, riser replacements and production drilling on Njord. The company’s inter-company long-term debt at the end of 2012 was NOK 6,567 million, compared to NOK 8,367 million at the end of 2011. The decrease in long-term loans is due to

the partial repayment of the Gjøa project loan end of 2012. The Company’s result after tax in 2012 was NOK 1,291 million, compared to NOK 1,086 million in 2011. Total equity after the allocation of proposed dividend is NOK 2,421 million, giving an equity ratio of 10%. Distributable equity at the end of the year is NOK 0.83 million. The accounts have been prepared on a going concern basis. The Board of Directors and the Managing Director confirm the basis for this in accordance with section 3-3 of the Norwegian Accounting Act. The Board of Directors is not aware of any conditions of significance that could impact the company’s result and financial position as per 31 December 2012 and which have not been reflected in the accounts. The fully owned subsidiary GDF SUEZ E&P Greenland AS had no revenues in 2012 and incurred costs in the amount of NOK 206 million. The company has provided a group contribution to the subsidiary of NOK 206 million.

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 January 2012 he has held the position of Senior Vice President Operations for E&P International.

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 value of shares in GDF SUEZ E&P Greenland AS is equal to the funds injected in the company, NOK 303 million. The Board of Directors recommend the following distribution based on the 2012 accounts:

Net result 2012: NOK 1,291,137,905 Retained earnings: NOK 76,784,905 Dividend: NOK 1,214,353,000

31 DECEMBER 2012 / 19 MARCH 2013

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

Turid Moldskred Board member Employees’ Representative

Atle Sonesen Managing Director

Turid Moldskred Board member Holds a Master of Petroleum Engineering degree from NTNU. 24 years of broad experience in the upstream business within subsurface, gas supply/NCS infrastructure planning and international business development. She has previous work experience from ConocoPhillips and Statoil. Joined GDF SUEZ in 2009 and has since 2011 held the position Manager Asset Area Non-operated Ventures.

Year 2012 Annual accounts

Income statement Note

2012

2011

Sales oil and gas

11 760 920 733

9 876 109 714

Tariff income

71 551 162

74 203 083

159 403

11 832 471 895

9 950 472 200

1 870 920 805

1 734 893 213

282 285 919

696 982 679

OPERATING INCOME

Gain on sale of assets Total operating income OPERATING EXPENSES Operating expenses Exploration expenses Payroll expenses

6, 7

54 247 327

48 009 060

3 453 275 247

2 559 292 332

25 636 285

64 712 682

98 378 992

80 443 464

Total operating expenses

5 784 744 575

5 184 333 429

Operating profit

6 047 727 320

4 766 138 770

1 719 572

1 232 111

50 927 290

184 478 164

Depreciations Impairment Other operating expenses

FINANCIAL INCOME AND EXPENSES Interest income Foreign currency exchange gain Interest income from group companies

Foreign currency exchange loss Interest expenses to group companies

Other interest expenses Net financial items Operating profit before tax

Tax expenses

Net income

20 503 927

74 584 145

179 613 735

152 556 712

219 318 021

419 109 736

2 962 405

10 582 235

328 743 371

321 954 263

5 718 983 948

4 444 184 508

4 427 846 043

3 357 961 721

1 291 137 905

1 086 222 787

1 214 353 000

1 053 750 500

Allocated as follows: Proposed dividend Transfer other equity Total allocations

76 784 905

32 472 287

1 291 137 905

1 086 222 787

Balance sheet Note

2012

2011

21 482 618 208

21 410 260 839

303 157 775

70 378 719

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

21 785 963 983

21 480 827 558

42 669 837

23 271 001

68 654 767

56 367 952

328 242 147

852 699 045

1 521 182 671

932 357 662

1 918 079 586

1 841 424 659

453 934 869

237 178 008

2 414 684 291

2 101 873 668

24 200 648 275

23 582 701 227

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

3, 14

1 005 890 495

943 345 972

2 420 890 495

2 358 345 972

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 62

143 366 264

88 794 978

7 385 815 694

7 075 939 087

3 484 440

3 239 284 021

2 477 237 218

10 771 950 418

9 641 971 282

6 566 999 999

8 366 999 999

17 338 950 417

18 008 971 281

841 385

29 753 086

29 047 647

36 160 569

1 001 712 657

1 033 052 472

1 214 353 000

1 053 750 500

1 946 653 312

540 240 215

5 700 560

242 498 802

522 427 133

4 440 807 363

3 215 383 974

21 779 757 780

21 224 355 255

24 200 648 275

23 582 701 227

Year 2012 Annual accounts

Cash flow statement

Operating profit before tax Tax refund, exploration expenses Payment of tax payable Depreciations

2012

2011

5 718 983 948

4 444 184 508

-2 678 062 469

-677 000 001

3 572 079 908

2 699 392 075

Changes in accounts receivable and accounts receivable operators

512 170 082

4 062 341

Changes in accounts payable and accounts payable operators

-60 251 516

402 349 584

Difference between pension cost and amounts paid into pension scheme

18 401 363

21 513 400

Changes in other balance sheet items

-979 795 455

1 270 241 389

Net cash flow from operating activities

6 103 525 861

8 164 743 295

-2 800 239 445

-3 048 550 600

-232 779 056

-70 104 980

-188 000

Net cash flow from investing activities

-3 033 018 500

-3 118 843 579

Payment of long-term borrowings

-1 800 000 000

-4 735 835 904

Dividend

-1 053 750 500

-388 276 000

Net cash flow from financing activities

-2 853 750 500

-5 124 111 904

Acquired tangible fixed assets Shares in subsidiary Financial investments

New long-term borrowings

Net change in cash and cash equivalents

216 756 861

-78 212 188

Cash and cash equivalents at beginning of year

237 178 008

315 390 196

Cash and cash equivalents at end of year

453 934 869

237 178 008

Notes 01 Accounting policies The annual accounts have been prepared in the development of commercial oil or gas fields Oil and gas producing licences. For oil and gas producing ownership interests, as well as licences accordance with the Norwegian Accounting are capitalized as a part of the installations. in the development phase, the acquisition cost will Act and Norwegian generally accepted Capital expenditures on fields in production accounting principles. are capitalized based on information from the be allocated between entered exploration costs, licence rights, production facilities and deferred operator. taxes. In connection with agreements for acquiRevenues. The sale of crude oil and gas is Depreciation of oil and gas production sitions/trade of interests, the parties will establish recognized through sales method. For crude facilities is calculated in accordance with the a time for the acquisition of the net cash flow from oil the point of delivery is at the offshore unit-of-sales method. In accordance with this loading point or at shipment from terminal. method the annual depreciation will be deterthe effective date (often set on 1 January of the calendar year). In the period between the effective Point of delivery for gas is at the gas receimined based on the relationship between the date and the implementation date, the seller will ving terminal onshore. annual sold volume and the estimated total include the acquired interest in the seller’s accounts. oil and gas reserves that can be recovered In accordance with the acquisition agreement, there Expenses. Expenses are expensed as incurred with the existing production facilities in use. in accordance with the matching principle; Depreciation of onshore equipment is calculated will be a settlement with the seller of net cash either along with the revenues they have gene- in accordance with the straight-line method. flow from the ownership interest during the period rated or identified as a periodical expense. Property, plant and equipment is capitalized from the effective date to implementation date and depreciated linearly over the estimated (Pro&Contra settlement). The Pro&Contra settleEstimates. In accordance with Norwegian useful life. Costs for maintenance are expenced ment will be adjusted in regards to profit/loss generally accepted accounting principles, as incurred, whereas cost for improving and and against the ownership interest with the buyer, the management of the company is respon- upgrading property, plant and equipment are as the settlement (after reduction for taxes) is sible for the estimates and assumptions that added to the acquisition cost and depreciated regarded as part of the payment for the transaction. affect the valuation of assets and liabilities with the related asset. As of the implementation date, revenue and in the balance sheet and depreciations in the costs are included in the buyer’s results. profit and loss statement. The final realizable Subsidiaries and investment in associates. As regards taxes, the buyer will include for values may deviate from these estimates. Subsidiaries and investment in associates taxation net cash flow (Pro&Contra) and any other are valued at cost in the company accounts. revenue and costs as of the effective date. Classification and assessment of items The investment is valued as cost of the shares Allocations will not be made for deferred taxes in the balance sheet. Current assets and in the subsidiary, less any impairment losses. in connection with acquisition of licences that are short-term liabilities include items due within Group consolidated financial statements are defined as acquisition of ownership interests. one year and items related to ordinary working not prepared as the group is included in the capital. All other items are classified as fixed consolidated financial statements at the parent Farm-in agreements. Farm-in agreements are assets/long-term debt. company in France. usually made during the exploration and develop Current assets are valued at the lower of cost ment phases, and are characterised by the seller and fair value. Short-term debt is valued at the Assets liabilities and expenses related deferring future financial advantages, in the form historical nominal value. to participating interests in exploration of reserves, to reduce future financing obligations. Fixed assets are valued at cost, but written and production licenses (joint ventures). One example can be that a licence interest is down to fair value if the decline in value is not The company’s participating interests in acquired and covered by the seller’s share of expected to be temporary. Long-term debt is exploration and production licenses on the the drilling-related costs. During the exploration stated at the historical nominal value. Norwegian Continental Shelf are accounted phase, the company will normally enter farm-in for in the income statement and the balance agreements based on historical costs, as actual Foreign currency. Monetary balance sheet sheet in accordance with the proportional value often is difficult to determine. However, during items in foreign currency are converted at the consolidation method. the development phase, farm-in agreements are exchange rate on the closing balance date. entered as acquisitions at actual cost when the All foreign currency transactions are recorded Transfer of joint ventures shares. company is selling shares of oil and gas interests. in NOK on the basis of the company’s monthly Transfer of interest in a petroleum license on Actual value is determined by the costs that the book-keeping currency exchange rates, which The Norwegian Continental Shelf requires buyer has agreed to carry. approximate market rates. approval from the Norwegian Government. Under such transactions the sale price is Trade. Trading ownership interests is measured Exploration costs. Cost regarding geological generally considered to be on an ”after tax” with actual value of the interest to be traded, studies and analysis are expensed as incurred. basis (after-tax transaction) as the consideration unless the transaction lacks commercial subExploration drilling costs are temporarily capi- is not taxable for the seller and not deductable stance or if the actual value of the interest which talized until new potential oil and gas reserves for the buyer through depreciations. is acquired or traded is measurable. During the have been evaluated (the successful efforts When acquiring licences that yield rights to exploration phase, the company will normally method). When new reserves are discovered exploration for and production of petroleum, enter trades based on historical costs, as it is and fully developed and put into production, it will be considered if each acquisition should often difficult to determine the actual value. the exploration drilling costs will be depreciabe classified as a merger of enterprises or ted based on the-unit-of-production method. acquisition of ownership interest. As a main Spare parts and drilling equipment. Spare Drilling costs related to dry/non-commercial rule, acquisitions of individual licences do not parts and drilling equipment are valued at the holes are expensed. meet the definition of mergers of enterprises, lower of cost or market value. Cost is estimated and will accordingly be handled as acquisition using the FIFO method. Capital spare parts are Property, plant and equipment. Costs of individual ownership interests. capitalized with the investment. including interest on building loan related to

Year 2012 Notes

loss prospectively over the remaining useful Hedging. The Group apply the principals Over-/under lift and petroleum in stock. life of the asset. of IAS 39 and uses the following criteria for Obligations arising as a result of lifted quantities classifying a derivative or another financial of crude oil that are larger than the company’s Tax expense. Tax expense reflects both instrument as a hedging instrument: (1) the participating interests in a license, are valued at taxes on current taxable income and change hedging instrument is expected to be highly production cost. Receivables arising as a result in deferred income taxes. Deferred tax is caleffective in offsetting the changes in fair of lifted quantities of crude oil that are less than culated based on net temporary differences value or the cash flow of an identified object – the company’s share in a license, are valued at between the book and tax values at year end. the hedging effectiveness is expected to be the lower of production cost and sales price. The calculation has taken into account tax between 80-125%, (2) the hedging effectivePetroleum in stock which has not passed the loss carry forward and uplift. The current tax ness can be measured reliably, (3) satisfactory Norm Price-point, is valued at production cost. rate has been used in the calculation of the documentation is established before entering deferred tax expense. into the hedging instrument, showing among Uncertain obligations. GDF SUEZ Norge AS The uplift reduces the special petroleum tax. other things that the hedging relationship is will, through its activities, be involved in conflicts Earned uplift from capitalized expenditures effective, (4) for cash flow hedges, that the and demands. The company will make allocations in its accounts for probable obligations have been fully reflected in the tax calculation. future transaction is considered to be highly probable, and (5) the hedging relationship is in connection with such unresolved issues Pensions. Accounting for pensions is based on valuated regularly with quantitative analysis based on the best estimates of the company. a linear vested principle and on expected wages and is considered to be effective. It is assumed the results of these conflicts at the point of retirement. Changes in pension will not have a significant negative impact schemes are amortized over the remaining Cash flow hedges. The efficient part of changes on neither the company’s economic position, vesting period. Estimate deviations are continuin the fair value of a hedging instrument is operating results nor cash flow. ously charged to equity. Social security tax is recognised in the equity. The inefficient part included in the pension cost and liabilities. of the hedging instrument is reported in the Accounts receivables. Trade accounts income statement. When a hedging instrument receivables and other receivables are recorAccounting for license cost. The company’s has matured, or is sold, exercised or terminated, ded at face value reduced by a provision for account reflects the net cost after charging or the Group discontinues the hedging relationanticipated losses. partners their share of license costs on licenses ship, even though the hedged transaction is still which the company operates. expected to occur, the accumulated gains and Asset retirement obligation. When the losses at this point will remain in comprehensive retirement obligation has incurred, the liability Cash flow statement. The cash flow statement income, and will be recognised in the income amount is recognized as a long-term provision and the same amount is capitalized as part of is presented using the indirect method. Cash and statement when the transaction occurs. If the hedged transaction is no longer expected to the producing asset. The asset cost is expensed cash equivalents include bank deposits. occur, the accumulated unrealised gains or through depreciations over the remaining useful Leasing. GDF SUEZ E&P Norge AS has only losses on the hedging instrument will be recoglife of the asset. The future changes in asset operational leasing contracts. The cost is nised in the income statement immediately. retirement obligation estimates are capitalized as part of the asset and charged to profit and continuously charged to the profit and loss.

02 Financial market risk The company’s financial result is affected by fluctuations in crude oil and gas prices and foreign currency exchange rates (mostly 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 GDF SUEZ E&P Norge AS 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 2012 the realised amount on SWAP contracts is recorded as revenue NOK 53 278 900. NOK

2012

Total hedging revenues

28 378 812

Liquids hedging revenues

24 900 088

Total hedging revenues

53 278 900

Below an overview of MTM liability value as of 31.12.2012 of NOK 9 185 418. Of this amount NOK 5 700 978 is due in 2013 and NOK 3 484 440 in 2014.

Booked CFH commodities liability CFH commodities reserves equity

MTM inefficient part

31.12.2012

Due

2013

2014

Liability

9 185 418

5 700 978

3 484 440

Equity

-6 282 826

-3 899 469

-2 383 357

Cost

459 271

285 049

174 222

04 Bank deposits NOK 32 670 596 of total bank deposits are restricted funds relating to withheld taxes.

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

Norway

France

Crude oil

Sum 2012

Sum 2011

5 847 277

5 013 310

1 135 794

1 652 968

1 258 564

1 631 198

3 861 250

3 296 472

NGL

517 174

Gas

102 106

Condensate

346 147

307 764

71 551

74 203

53 279

11 832 472

9 950 313

Gas infrastructure

2 127 945

Hedging

Total

1 036 979

2 127 945

8 614 269

06 Salaries and fees 2012

2011

Salaries

242 778 735

218 159 593

Recharged salaries

299 418 521

258 278 494

Social security tax

39 245 820

29 360 288

Pension costs

46 013 794

40 198 035

Other employee benefits

25 627 498

18 569 639

Total

54 247 327

48 009 060

198.0

182.5

Number of full-time equivalent in fiscal year

The Managing Director received in 2012 NOK 2 769 768 in salary, bonus and other benefits. In 2012 remuneration to the Board was NOK 90 000.

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. The affect of these plans is considered immaterial in the accounts. Audit fees Audit fees in 2012 totaled NOK 1 600 650 excl. VAT. Other services from auditors total NOK 491 920 excl. VAT. Such other services include assistance with the tax return preparation and correspondence with the Norwegian Oil Taxation Office.

Year 2012 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 trough normal operation.

Pension rights earned during the year Interest expence on earned pension rights Yield pension cost

Net pension cost

2012

2011

44 050 376

38 628 419

4 592 429

3 759 212

-2 629 011

-2 189 596

46 013 794

40 198 035

2012

2011

Pension benefits obligations

187 709 215

138 219 345

Plan assets

-82 455 394

-60 767 324

Estimate change

38 112 443

11 342 957

Net pension liability

143 366 264

88 794 978

2012

2011

Discount rate

2.20%

3.30%

Expected increase in salaries

3.25%

4.00%

Expected increase in pensions

0.00%

0.70%

Expected increase in basis for calculating government contributions

3.00%

3.75%

Expected return on plan assets

2.20%

4.80%

Assets/obligations

Financial assumptions

08 Related party transactions Relationship to entity

Value of transactions (NOK)

Nature of transactions

Other information

GDF SUEZ SA

Parent company

20 504 000

Interest and financial income from group account

Profit&Loss

GDF SUEZ SA

Parent company

-34 814 000

Transport cost of gas

Profit&Loss

GDF SUEZ SA

Parent company

1 660 324 000

Sales of gas

Profit&Loss

Associated company

-30 293 000

Operation expense, shared solution SAP

Profit&Loss

Parent company

-50 798 000

Operation expense, support charged by head office

Profit&Loss

Associated company

-214 562 000

Interest and financial cost, long-term loan

Profit&Loss

Subsidiary

2 545 142

Recharge, salaries and travel expenses

Profit&Loss

-37 065 346

Short-term receivable to consolidated subsidaries and JV

Balanse sheet

Related party

GDF SUEZ DEXpro GDF SUEZ E&P International GDF SUEZ CC Division J GDF SUEZ E&P Greenland AS GDF SUEZ E&P Greenland AS GDF SUEZ E&P International GDF SUEZ DEXpro GDF SUEZ SA GDF SUEZ Trading GDF SUEZ CC Division J

Subsidiary Parent company

-1 053 750 500

Dividend paid

Balanse sheet

Associated company

-14 627 000

Cost accruals, support from head office

Balanse sheet

Parent company

16 209 000

Accrued income

Balanse sheet

Parent company

182 089 000

Accrued income

Balanse sheet

Associated company

-1 800 000 000

Partial repayment loan

Balanse sheet

09 Tangible fixed assets

Acquisition cost 01.01.12

Production plants

Assets under development

Equipment etc.

Capitalized exploration cost

Total

24 606 040 727

2 692 309 913

362 900 119

590 034 620

28 251 285 378

1 491 107 521

1 969 277 614

62 787 084

28 096 681

3 551 268 901

Acquired during the year Disposal during the year ** Reclassification

143 070 941

-88 599 634

-54 471 307

Acquisition cost 31.12.12

26 240 219 189

4 572 987 893

425 687 203

563 659 994

31 802 554 279

Acc. depreciation 31.12.12

10 025 118 067

204 469 038

90 348 967

10 319 936 071

Book value as of 31.12.12

16 215 101 122

4 572 987 893

221 218 165

473 311 027

21 482 618 208

3 383 320 951

69 954 296

3 453 275 247

Actual impairment ***

25 636 285

Estimated useful life

Actual depreciation

3-8 years

* Depreciation according to Unit of Sales method. ** Capitalized exploration drilling costs from previous years are eveluated as non-commercial discoveries. *** Aquisition cost on license PL341 and 377.

10 Other provisions and obligations 2012

2011

Asset retirement obligation

2 853 114 277

2 008 916 444

Other long-term provisions

386 169 744

468 320 774

3 239 284 021

2 477 237 218

Other provisions

Asset retirement obligation In accordance with license concession terms of the production licenses which the company holds, the Norwegian State can take over the installations free of charge when the production ends or when the license expires. Alternatively the State can require the installations to be removed. In addition to provisions for future abandonment costs there has been made provisions for future removal costs regarding plugging and securing of production wells. The accretion expense is classified as operating expenses. 2012

2011

Asset retirement obligations at January 1

2 008 916 444

1 342 269 846

Liabilities incurred / revision in estimates

751 029 456

591 259 537

Accretion expense

93 168 377

75 387 061

Asset retirement obligations at December 31

2 853 114 277

2 008 916 444

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

1 288 683 587

911 931 776

751 029 456

591 259 538

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

-258 511 167

-214 507 727

1 781 201 876

1 288 683 587

Assets related to removal and abandonment are also included in note 8.

Drilling commitments The company, together with its license partners, is committed to take part in the drilling of wells in accordance with the license agreements. Contractual obligations (in thousand NOK) Obligations entered

2013

Thereafter

Total

2 634 645

2 920 133

5 554 778

The contractual obligations include the acquisition and construction of assets in licenses where the company has ownership interests. The accounts includes allocations for uncertain obligations on NOK 84 000 000 in tax.

Year 2012 Notes

11 Inter-company balances Receivables NOK 261 550 929 of trade account receivables are related to inter-companies (31.12.2011: 367 286 617). There was also as of 31.12.12 a short-term receivable toward the parent company of NOK 970 662 922 (2011: NOK 64 063 064). Interest income totaled NOK 20 503 927 (2011: NOK 74 584 145). Liabilities The company has entered into an agreement with the parent company regarding financing. The loans are stated in NOK with floating interest. The inter-company balance as of 31.12.12 was NOK 6 566 999 999 (31.12.2011: NOK 8 366 999 999). Interest expenses on the loans in 2012 were NOK 219 318 020, of which NOK 0 are capitalized (2011: NOK 419 109 736).

12 Drilling equipment Spare parts and drilling equipment are valued at the lowest of cost or market value. Cost is estimated using FIFOmethod. Capital spare parts are capitalized with the investment. 2012 2011 Drilling and well equipment

42 669 837

23 271 001

Total inventories

42 669 837

23 271 001

2012

2011

340 532 147

2 502 999 339

13 Taxes Specification of the tax expense for the year Change in deferred tax Tax effect of aquisition cost Tax payable Excessive tax provision previous years

-388 297 429

3 903 089 548

1 244 593 336

184 224 348

-1 333 525

4 427 846 043

3 357 961 721

5 718 983 948

4 444 184 508

Permanent differences

147 628 056

787 205 520

Changes in temporary differences

336 841 650

-9 342 717

6 203 453 655

5 222 047 311

153 018 822

240 453 647

-8 053 282

-9 255 353

Total tax expense

Specification of the tax basis for the year Ordinary profit before tax

Basis ordinary income tax Limited deduction of financial expenses for tax purposes Current income tax on onshore activities Uplift

-911 440 328

-1 063 281 300

5 436 978 867

4 389 964 305

Basis ordinary income tax

6 203 453 655

5 222 047 311

Loss carried forward – income tax

-777 071 110

Basis ordinary income tax after loss carried forward

6 203 453 655

4 444 976 201

Tax payable – ordinary income tax 28%

1 736 967 023

1 244 593 336

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

5 436 978 867 0 -1 104 733 817 4 332 245 049

4 389 964 305 -656 973 884 -3 732 990 421 0

Tax payable – special petroleum tax 50%

2 166 122 525

Basis special petroleum tax

Tax payable

Year 2012 Notes

2012

2011

13 315 325 648

12 813 544 581

-143 366 264

-88 794 978

Specification of basis for deferred tax Differences that are netted Fixed assets Net pension liability Crude oil inventory Gain and loss account Asset retirement obligations Basis ordinary income tax (28%) Limited capitalization of interest on development projects Unused uplift Basis special petroleum tax (50%) Deferred tax liability Ordinary income tax (28%) Special petroleum tax (50%) Total deferred tax Hereof booked against equity

3 660 658

13 195 378

16 613 919

-2 853 114 277

-2 008 916 444

10 335 701 144

10 736 107 736

-136 413 069

-176 478 678

-1 215 907 465

-2 419 971 217

8 983 380 610

8 139 657 841

2 893 996 320

3 006 110 167

4 491 690 305

4 069 828 921

7 385 686 625

7 075 939 088

-62 020 457

-31 964 317

Tax payable Basis ordinary income tax

3 903 089 548

1 087 322 980

Tax effect on cost of goods sold booked in balance

157 270 356

Tax effect of group contribution

-27 286 367

Paid tax prior adjustment

117 563 763

-66 754

-2 073 999 999

-677 000 001

1 946 653 312

540 240 214

Ordinary profit before tax

5 718 983 948

4 444 184 508

Marginal tax 78%

4 460 807 480

3 466 463 916

-455 720 164

-464 941 401

146 018 805

252 538 207

Limited deduction of financial expenses

92 515 574

105 234 524

Adjustments from previous years

184 224 348

-1 333 525

4 427 846 043

3 357 961 721

Tax advance paid Total tax payable in balance sheet

Reconciliation of tax expense and calculated tax expences

Uplift Other permanent differences

Tax expense The tax loss can be carried forward indefinitely.

14 Equity

Equity 31.12.11 Current year's profit Pension Hedging Dividend 2012 Equity 31.12.12

Share capital

Share premium reserve

141 500 000

1 273 500 000

141 500 000

1 273 500 000

Other equity

Total

943 345 972

2 358 345 972

1 291 137 905

-7 957 382

-6 283 000

-1 214 353 000

1 005 890 495

2 420 890 495

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 Investments 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 2012 there was given NOK 205 506 727 in group contribution to subsidiary.

17 Reserves According to reserve information published by the Norwegian Oil Directorate the company's share of remaining reserves are:

Licence duration

Oil (mill Sm 3)

Gas (bill Sm 3)

NGL (mill Sm 3)

Condensate (mill Sm 3)

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

1.18 0.89 0.00 1.93 0.28 0.65 2.91

3.74 0.95 18.83 8.33 0.67 0.10 1.60

1.63 0.10 1.23 4.31 0.21 0.06 0.63

0.00 0.00 2.28 0.00 0.00 0.00 0.00

Njord Fram SnĂ¸hvit GjĂ¸a Vega Hyme Gudrun

31 DECEMBER 2012/19 MARCH 2013

Jean-Marie Jacques Dauger Chairman of the Board

Didier Holleaux Board member

Rob Buchan Board member

Benoit Mignard Board member

Turid Moldskred Board member Employee elected representative

Rolf Erik Rolfsen Board member

Gerhard V. Sund Board member Employee elected representative

Terje Overvik Board member

Atle Sonesen Managing Director

Auditorâ&#x20AC;&#x2122;s report

Year 2012 Auditorâ&#x20AC;&#x2122;s report

Photos Jan Inge Haga Anne Lise Norheim Statoil GDF SUEZ Shell Kjetil Alsvik Rune Osa Nikolaj Lund Roger Bareksten Bente Brinchmann David E. Antonsen Ă&#x2DC;yvind Hjelmen JĂ¸rn Steen Fotograf Eidsmo Egil Aardal

Agency procontra Paper Galleri Art Silk 150 / 250 g Circulation 1000 (eng) + 600 (nor) Print Gunnarshaug

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