1 -Classification: Internal 2011-09-19 Statoil’s Unconventional Strategy/Portfolio Business opportunities with unconventionals London 20 September 2011.

1 - Classification: Internal 2011-09-19

Statoil’s Unconventional Strategy/Portfolio

Business opportunities with unconventionals

London 20 September 2011

Atle Rettedal

SVP New Ventures, Statoil

2 - Classification: Internal 2011-09-19Classification: Internal (Restricted Distribution) 2011-09-06Classification: Internal (Restricted Distribution) 2011-09-05

2 - Classification: Internal (Restricted Distribution) 2011-09-052 -

Data from World Energy Outlook, US Geological Survey , US Energy Information Administration and World Coal Association

Oil produced Oil resources Gas produced Gas resources Coal1,1 Tbbl

Methane hydrates

2-120 Tbbl

0,4 Tbbl

ShaleConv.

CBMTightOil shale

Oil sand

EHO

Conv.

CoalResources30+ Tbbl

7,8 Tbbl8,8 Tbbl

Global energy resources

3 - Classification: Internal 2011-09-19

4 - Classification: Internal 2011-09-19

Apply technology to expand in unconventionals

• Early access to positions at low end of the cost-curve at attractive prices

• Partnerships and secondments to build capabilities

• Accessed midstream position

• Kai Kos Dehseh transaction

• Substantial production growth

• Innovate & leverage skill-base

− Apply subsurface competence

− Establish technology hubs

• Kai Kos Dehseh operations

− Successful start-up

− Ramping up production

• Taking on operatorship in Eagle Ford

Cost curve post tax breakeven

Track record

USD/mcf Statoil shale Assets

Resource potential, Tcf

0

10

1,0005000

 100

 200

 300

mboed

20202010

Production

Long term materialityStatoil to operate

2011/2012 delivery

Kai Kos Dehseh

Marcellus

Eagle Ford

5 - Classification: Internal 2011-09-19

Statoil’s US Shale Portfolio• Marcellus (dry gas):

− Acquired 32.5% of Chesapeake’s interest in the Marcellus shale

• Eagle Ford (rich gas):

− Acquired 50% of Enduring’s acreage with Talisman as partner

− Shared operatorship

Marcellus Eagle Ford

ft 6000-9000 9000-14500

m 1800-2700 2700-4400

ft 25-250 140-450

m 10-80 40-140

Organic Content % 5-8 2-7

psi/ft 0.55-0.65 0.60-0.72

bar/10m 1.24-1.47 1.36-1.63

Porosity % 6-8 6-12

Permeability nD 500-2000 200-3000

Depth

Thickness

Pressure

6 - Classification: Internal 2011-09-19Classification: Internal (Restricted Distribution) 2011-06-22Classification: Internal (Restricted Distribution) 2010-12-11Classification: Internal (Restricted Distribution) 2010-12-10Classification: Internal (Restricted Distribution) 2010-12-10Classification: Internal (Restricted Distribution) 2010-12-09Classification: Internal (Restricted Distribution) 2010-12-07Classification: Internal (Restricted Distribution) 2010-12-03Classification: Internal (Restricted Distribution) 2010-11-30Classification: Internal (Restricted Distribution) 2010-07-28Classification: Internal (Restricted Distribution) 2010-07-28Classification: Internal (Restricted Distribution) 2010-07-28Classification: Internal (Restricted Distribution) 2010-07-28Classification: Internal (Restricted Distribution) 2010-07-26Classification: Internal (Restricted Distribution) 2010-07-26Classification: Internal (Restricted Distribution) 2010-07-23Classification: Internal (Restricted Distribution) 2010-05-06Classification: Internal 2010-04-15Classification: Internal 2010-04-12

Classification: Internal (Restricted Distribution) 2011-05-18Classification: Internal 2011-05-17Classification: Internal 2011-05-09Classification: Internal 2011-05-17Classification: Internal 2011-05-09Classification: Internal 2010-06-02Classification: Internal 2010-05-

20Classification: Internal 2010-04-16Classification: Internal 2010-05-20Classification: Internal 2010-04-16

Statoil’s Marcellus asset

6 - Classification: Internal 2010-04-16

• JV with Chesapeake Energy since Nov. 2008• Statoil: 682,000 Net Acres• Top tier acreage positions in two core areas• Utica (liquids) potential• ~30 JV operated rigs • 50,000 boepd target in 2012• Low cost F&D • Low cost early entry

Statoil-Chesapeake Joint Venture

Nov

200

8 --

----

-

7 - Classification: Internal 2011-09-19

Statoil’s Eagle Ford asset

7 -

• Joint Venture with Talisman since Dec. 2010• Pathway to operatorship for Statoil • Statoil: 67,000 net acres • Growth opportunities• 5 JV operated rigs today. 8 by year end• About 60% of revenue expected from liquids• Low cost early entry

Statoil-Talisman Joint Venture

Nov

200

9 --

----

-

8 - Classification: Internal 2011-09-19

Local stakeholders and land access

Local impact

• Land-based shale involves frequent interaction with local stakeholders

• Fit for purpose impact assessments and sound CSR and HSE measures crucial to success

Land access

• The US is unique in terms of coupling land access and resource access

• All relevant countries outside US will involve:

− Access to resources through government

− Access to land through negotiations and relationship with authorities and land owners

9 - Classification: Internal 2011-09-19

Source: Wood Mackenzie M&A Service (September 2011)

0

50

100

150

200

2006 2007 2008 2009 2010 2011 YTD

Dis

clos

ed A

cqui

sitio

n Sp

end

(US$

bn)

Conventional & Mixture

Heavy Oil

CBM

Tight Gas

Shale Gas

Shale Oil

Increasing unconventional share of global M&AGlobal M&A spend by asset type

10 - Classification: Internal 2011-09-19

North American cluster

• Provide sufficient scale for an industrial position

• Put Statoil in Top 5-10 for shale

• Continue the NA growth trajectory of 2-3x production growth every 5

years

Global growth portfolio

• Take positions in emerging plays to create a strong portfolio by 2015

Ambition

• 1 based on today’s market concentration and the expected shift towards unconventionals

Our ambition towards 2020Industrial position in North America – Global long-term options

Options

Marcellus

Eagle Ford

Proved plays

Immature

plays

11 - Classification: Internal 2011-09-19

Emerging views of gas resources globally

Range of technically recoverable gas resources

(tcf)

Europe

South America

Canada

USA

Africa

Australia

China

Other Asia PacificMexico

Sha

le g

asC

BM

T

ight

gas

Legend:

EIA: 639 tcf

EIA: 1042 tcf

EIA: 1225 tcf

681 tcf

EIA: 388 tcf

EIA: 114 tcf

EIA: 1275 tcf

EIA: 396 tcf

Low

High

0

200

400

600

800

1000

1200

1400

1600

1800

2000

tcf

Estimates outside NA are immature and based on a limited data set

CBM and tight gas estimates reflect limited research coverage

WM: 126 tcf

WM: 129 tcf

WM: 35 tcf

WM: 21 tcfWM: 69 tcf

WM: 585 tcf

EIA: 862 tcfWM: 202 tcf

Sources: WoodMackenzie (WM) (2011), US Energy Information Administration (2011), Advanced Resources International (2009), IHS Cera (2010/11)

Note: The estimates are based on different evaluation methods and include different unconventional plays which makes them not directly comparable.

12 - Classification: Internal 2011-09-19

Thank you

Atle Rettedal

Senior Vice President

[email protected] www.statoil.com