1. Going North Together Bengt Lie Hansen President, StatoilHydro Russia Russian Petroleum & Gas Congress Moscow, 25 June 2009

2. Thoroughly prepared for venturing north  As Norway’s oil and gas industry develops from south to north we draw on nearly forty years of experience Going North Together

3. Statfjord Kårstø Kollsnes Troll Europipe I Dunkirk Zeebrugge Åsgard Norne Haltenpipe Heidrun Nyhamna ÅTS 1979 1985 Europipe II Melkøya Snøhvit Zeepipe I St Fergus Vesterled Teesside Emden Frigg Ekofisk Status 1979The first step - 1985The second step - 1996The third step - 2000The fourth step – 2006/2007 Easington Sleipner Ormen Lange Key learnings  What seems impossible can be done  … and create significant value Going North Together 1996 2000 2006/2007 Norwegian Continental Shelf SleipnerTrollÅsgard Ormen LangeSnøhvit

4. Ormen Lange - a textbook field development  One of the most daunting challenges ever encountered on the Norwegian Continental Shelf Going North Together

5. A textbook field development  Field development offshore  Pipeline to shore  Gas processing plant on land  Subsea pipeline to UK  Gas to UK market Going North Together

6. Snøhvit – Pioneer in the Arctic  The first offshore development in Arctic waters. The ground-breaking LNG project represents an invaluable pool of experience in the harsh climate of the extreme north Going North Together

7. Pioneer in the Arctic  Field development offshore  Pipeline to shore  LNG plant  LNG carriers  Gas to new markets Going North Together

8. StatoilHydro in Russia  Producing oil from Kharyaga oil field  Partner on Shtokman project Phase One  Cooperation agreements with authorities in north-western Russia  Operating chain of gas stations  20 years in Russia Introduction

9. Image courtesy: Sherpa Consulting

10. Reference case: Size of Shtokman (in same scale) YTF (BBOE) 104.65 Oil/Gas Ratio: 0.2 YTF (BBOE) 5.29 Oil/Gas Ratio: 0.2 YTF (BBOE) 10.26 Oil/Gas Ratio: 0.5 YTF (BBOE) 12.77 Oil/Gas Ratio: 0.5 YTF (BBOE) 14.27 Oil/Gas Ratio: 0.5 YTF (BBOE) 12.71 Oil/Gas Ratio: 0.5 YTF (BBOE) 3.57 Oil/Gas Ratio: 0.766 YTF (BBOE) 20.05 Oil/Gas Ratio: 0.5 YTF (BBOE) 8.09 Oil/Gas Ratio: 0.064 YTF (BBOE) 4.94 Oil/Gas Ratio: 0.7 YTF (BBOE) 6.29 Oil/Gas Ratio: 0.5 YTF (BBOE) 21.08 Oil/Gas Ratio: 0.2 YTF (BBOE) 5.49 Oil/Gas Ratio: 0.7 Russia has considerable offshore resources in the North

11. Strong partnership on Shtokman  It is one of the world’s largest and most challenging undeveloped offshore gas discoveries. This is why we call it the Mother of All Projects Going North Together

12. Modultransport Shtokman - a combination of Snøhvit and Ormen Lange Field development offshore Pipeline to shore Gas plant on land for processing and export compression Pipeline to Europe LNG to Atlantic markets SDAG

13. Main challenges on Shtokman phase 1 Technical challenges  Arctic environment  Sensitive ecosystem  Ice and iceberg conditions  Remoteness from shore (550 km)  Phase 1 design capacity (70 MSM3/d) Planning and costs challenges  Tight schedule  Economics  Russian approval process Organization and human challenges  Developing a new organization  3 different but complimentary cultures  Russian content

14. Going North Together Shtokman - a combination of Snøhvit and Ormen Lange Securing good progress towards FID Strong partnership with Gazprom and Total

15. Going North Together  The Shtokman project could spur future developments on the Russian Arctic shelf. Therefore, StatoilHydro helps Murmansk and Arkhangelsk prepare for challenges we faced on the NCS in the 1970’s. North-western Russia – at the dawn of a new era

16.  Cooperation Agreements with Murmansk Region Government and Arkhangelsk Region Administration since 2004  Agreements cover supplier development, university cooperation, environmental projects and social cooperation programs Going North Together

17. Productive partnership on Kharyaga  StatoilHydro and Total benefit from a decade of close collaboration in north-western Russia, overcoming the forbidding climate of the tundra

18. Productive partnership on Kharyaga  40% share in Kharyaga oil field on PSA terms  Producing around 20.000 boe/day, aiming for 40.000 boe/day  Valuable business experience with more than 10 years of cooperation with the Russian Federation under the Kharyaga PSA Kharyaga

19. Thoroughly prepared for venturing north  Technology enabler as leading operator and architect on NCS  Performing challenging development tasks creates base of experience  Cooperation driven, across borders Going North Together