Aker BP

Quarterly Report • Apr 28, 2021

QUARTERLY REPORT Q1 2021

FIRST QUARTER 2021 SUMMARY

Aker BP reported record high total income of USD 1,133 (834) million and operating profit of USD 591 (278) million for the first quarter 2021, positively impacted by higher oil and gas prices and increased volume sold. Net profit was USD 127 (129) million.

The company's net production in the first quarter was 222.2 (223.1) thousand barrels of oil equivalents per day (mboepd). Net sold volume was 223.2 (213.8) mboepd due to overlift. Average realised liquids price was USD 60.1 (44.2) per barrel, while the realised price for natural gas averaged USD 38.5 (31.8) per barrel of oil equivalents (boe).

Production costs for the oil and gas sold in the quarter amounted to USD 176 (142) million. Average production cost per produced unit amounted to USD 8.6 (8.1) per boe in the quarter.

Exploration expenses amounted to USD 71 (42) million. Total cash spend on exploration was USD 86 (80) million.

Depreciation was USD 258 (289) million, equivalent to USD 12.9 (14.1) per boe. Impairments amounted to USD 30 (55) million. Net financial expenses were USD 90 (42) million in the quarter. Profit before taxes amounted to USD 501 (236) million. Tax expense was USD 374 (106) million. The company reported a net profit of USD 127 (129) million for the quarter.

Capital expenditure for the development of fixed assets amounted to USD 217 (298) million in the first quarter. All field development projects progressed according to plan. Abandonment expenditures were USD 98 (105) million for the quarter, driven by plugging of wells at Valhall.

At the end of the first quarter 2021, Aker BP had total available liquidity of USD 4.4 (4.5) billion. Net interest-bearing debt was USD 3.3 (3.6) billion, including 0.2 (0.2) billion in lease debt. The company's USD 500 million Senior Notes 5.875% (2018/2025) were redeemed in March.

In February, the company disbursed dividends of USD 112.5 million, equivalent to USD 0.3124 per share. The Board has resolved to pay a quarterly dividend in May 2021 of USD 112.5 million, equivalent to USD 0.3124 per share. The ambition is to pay total dividends of USD 450 million in 2021.

Aker BP continues to apply a wide range of measures to minimise the risk to people and operations from the COVID-19 pandemic. The company has so far avoided any virus-related disruptions to its operations. The relevant policies and procedures will remain in place for as long as necessary.

Forward-looking statements in this report reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may not be within our control. All figures are presented in USD unless otherwise stated, and figures in brackets apply to the previous quarter.

Financial summary

	UNIT	Q1 2021	Q4 2020	Q1 2020
Total income	USDm	1 133	834	872
EBITDA	USDm	878	623	666
Net profit/loss	USDm	127	129	-335
Earnings per share (EPS)	USD	0.35	0.36	-0.93
Capex	USDm	217	298	360
Exploration spend	USDm	86	80	53
Abandonment spend	USDm	98	105	22
Production cost	USD/boe	8.6	8.1	8.7
Taxes paid/refunded	USDm	-11	-201	48
Net interest-bearing debt	USDm	3 282	3 647	3 548
Leverage ratio		1.2	1.5	1.2
Dividend per share (DPS)	USD	0.31	0.20	0.59
Average USDNOK exchange rate		8.51	9.02	9.50

Production summary

	UNIT	Q1 2021	Q4 2020	Q1 2020
Alvheim area	mboepd	50.1	54.7	57.5
Ivar Aasen	mboepd	20.2	18.7	22.7
Johan Sverdrup	mboepd	61.2	59.6	43.9
Skarv	mboepd	29.0	26.1	19.8
Ula area	mboepd	8.7	10.3	12.8
Valhall area	mboepd	53.0	53.6	50.1
Other	mboepd	0.0	0.0	1.4
Net production	mboepd	222.2	223.1	208.1
Over/underlift	mboepd	1.0	-9.3	-0.6
Net sold volume	mboepd	223.2	213.8	207.5
- Liquids	mboepd	183.0	175.7	174.3
- Natural gas	mboepd	40.2	38.1	33.2
Realised price liquids	USD/boe	60.1	44.2	44.7
Realised price natural gas	USD/boe	38.5	31.8	21.9

FINANCIAL REVIEW

Income statement

(USD MILLION)	Q1 2021	Q4 2020	Q1 2020
Total income	1 133	834	872
EBITDA	878	623	666
EBIT	591	278	-266
Pre-tax profit	501	236	-414
Net profit/loss	127	129	-335
EPS (USD)	0.35	0.36	-0.93

Total income in the first quarter 2021 increased to USD 1,133 (834) million, driven by higher realised prices and an increase in sold volume compared to the previous quarter. Sold volume was 223.2 (213.8) mboepd in the quarter. Realised prices increased by 36 percent for liquids and 21 percent for natural gas.

Production costs related to oil and gas sold in the quarter amounted to USD 176 (142) million. The increase was mainly driven by higher lifted volume. Production cost per produced unit amounted to USD 8.6 (8.1) per boe, in line with the full-year guidance of USD 8.5-9.0.

Exploration expenses amounted to USD 71 (42) million. This included field evaluation costs of USD 41 (21) million related to concept studies for NOAKA and other future development projects. Dry well expenses were USD 12 (6) million and were related to the Bask exploration well.

Depreciation amounted to USD 258 (289) million, corresponding to USD 12.9 (14.1) per produced barrel, with the reduction driven by increased reserves and decreased estimates for future abandonment cost on some fields. Impairments of

fixed assets amounted to net USD 30 (55) million, driven by an impairment for Ula/Tambar and partly offset by a reversal of previous impairments for Ivar Aasen. The main reasons for the net impairment charge are the effect of updated cost and production profiles offset by the increase in short-term oil and gas prices. See note 5 for more details on impairments. Other operating expenses amounted to USD 8 (27) million.

Operating profit increased to USD 591 (278) million for the first quarter. Net financial expenses amounted to USD 90 (42) million and included USD 19 million in costs related to early redemption of the company's USD 500 million 5.875% Senior Notes (2018/2025).

Profit before taxes amounted to USD 501 (236) million. Tax expense was USD 374 (106) million. The effective tax rate was 75 percent. See note 9 for further details on tax.

This resulted in a net profit for the first quarter 2021 of USD 127 (129) million.

Statement of financial position

(USD MILLION)	Q1 2021	Q4 2020	Q1 2020
Total non-current assets	11 155	11 162	10 913
Total current assets	1 086	1 258	814
Total assets	12 241	12 420	11 727
Total equity	1 989	1 987	1 813
Bank and bond debt	3 474	3 969	3 593
Total abandonment provisions	2 753	2 806	2 795
Deferred taxes	2 782	2 642	2 153
Other liabilities	1 243	1 016	1 372
Total equity and liabilities	12 241	12 420	11 727
Net interest-bearing debt	3 282	3 647	3 548

At the end of the first quarter 2021, total assets amounted to USD 12,241 (12,420) million, of which current assets were USD 1,086 (1,258) million.

Equity amounted to USD 1,989 (1,987) million at the end of the quarter, corresponding to an equity ratio of 16 (16) percent.

Deferred tax liabilities amounted to USD 2,782 (2,642) million and total abandonment provisions amounted to USD 2,753 (2,806) million. Bank and bond debt totalled USD 3,474 (3,969) million, of which the company's bonds constitute the entire debt at the end of this quarter.

At the end of the first quarter, the company had total available liquidity of USD 4.4 (4.5) billion, comprising USD 392 (538) million in cash and cash equivalents, and USD 4.0 (4.0) billion in undrawn credit facilities.

After the end of the quarter, Aker BP has received firm commitments from a consortium of banks for an extension of its Revolving Credit Facilities (RCF), which consist of a Working Capital Facility (WCF) and a Liquidity Facility (LF). The WCF will be extended from 2022 to 2024 with options for up to two years extension, while the committed amount is reduced from USD 2.0 billion to USD 1.4 billion. The LF will be extended from 2025 to 2026, and the committed amount remains USD 2.0 billion until 2025 and then reduces to USD 1.65 billion for the final year. Other terms of the facilities remain unchanged. After this, available liquidity under the RCF amounts to USD 3.4 (4.0) billion.

Cash flow

(USD MILLION)	Q1 2021	Q4 20201)	Q1 20201)
Cash flow from operations	900	678	570
Cash flow from investments	-322	-427	-382
Cash flow from financing	-723	-533	27
Net change in cash & cash equivalents	-145	-281	215
Cash and cash equivalents	392	538	323

1) As described in note 1, the presentation of payment of borrowing costs in the statement of cash flows has been changed. As from first quarter 2021, these cash flows are presented as financing activities, while they previously were presented as operating and investment activities. Comparative figures have been restated accordingly.

Net cash flow from operating activities was USD 900 (678) million in the quarter. The increase was driven by higher realised oil and gas prices.

Net cash used for investment activities was USD 322 (427) million, of which investments in fixed assets amounted to USD 216 (297) million for the quarter. Investments in capitalised exploration were USD 27 (44) million. Payments for decommissioning activities amounted to USD 79 (86) million driven by a campaign to plug and abandon (P&A) depleted wells at Valhall.

Net cash outflow from financing activities was USD 723 million, compared to USD 533 million in the previous quarter. Repayment of bonds amounted to USD 515 million and dividend disbursements were USD 113 (71) million. Interest payments were USD 63 (36) million and payments on lease debt amounted to USD 21 (20) million.

Risk management

The company seeks to reduce the risk related to foreign exchange, interest rates and commodity prices through hedging instruments. The company actively manages its exposures through a mix of forward contracts and options.

The following table shows the company's inventory of oil put options at the time of this report:

OIL PUT OPTIONS	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022
Share of oil prod. covered (after tax)	40 %	73 %	71 %	14 %	14 %
Average strike (USD/bbl)	40	46	46	45	45
Average premium (USD/bbl)	1.8	2.1	2.1	2.3	2.3

Dividends

At the Annual General Meeting in April 2021, the Board was authorised to approve the distribution of dividends based on the company's annual accounts for 2020 pursuant to section 8-2 (2) of the Norwegian Public Limited Companies Act.

In February the company disbursed dividends of USD 112.5 million, equivalent to USD 0.3124 per share.

On 27 April 2021, the Board resolved to pay a quarterly dividend of USD 112.5 million (USD 0.3124 per share) on or about 11 May 2021. The ambition is to pay total dividends in 2021 of USD 450 million.

OPERATIONAL REVIEW

Aker BP's net production was 20.0 (20.5) mmboe in the first quarter of 2021, corresponding to 222.2 (223.1) mboepd. Net sold volume was 223.2 (213.8) mboepd. The average realised liquids price was USD 60.1 (44.2) per barrel, while the average realised gas price was USD 38.5 (31.8) per boe.

Alvheim Area

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Alvheim	65 %	35 176	35 921	29 447	33 770	36 995
Bøyla	65 %	2 921	3 843	4 858	6 568	7 631
Skogul	65 %	4 450	6 891	8 091	7 899	1 622
Vilje	46.904 %	2 707	2 899	2 616	3 259	3 472
Volund	65 %	4 892	5 192	6 200	6 511	7 774
Total production		50 147	54 746	51 212	58 006	57 494
Production efficiency		99 %	98 %	92 %	96 %	98 %

First quarter production from the Alvheim area was 50.1 mboepd net to Aker BP, down eight percent from the previous quarter. The reduction was mainly driven by natural decline and by the Frosk test producer being shut in pending well intervention. At Alvheim, the Boa Attic South well started production at the end of March following strong drilling performance and efficient tie-in and clean-up operations. Production efficiency increased to 99 percent.

A single lateral side-track well on the Volund field has been sanctioned and the well is expected to be drilled in August 2021.

This is expected to be followed by the drilling of a dual-lateral well on Kameleon Infill West, pending final investment decision in the licence.

The Kobra East Gekko development project is being matured towards a final investment decision and in the second quarter 2021. For the Frosk development project, the development concept was approved in the first quarter, and the final investment decision is scheduled for third quarter 2021. The Trell and Trine development project has initiated subsea and tie-in studies.

Ivar Aasen

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Total production	34.7862 %	20 206	18 723	17 025	22 089	22 705
Production efficiency		90 %	90 %	75 %	98 %	97 %

First quarter production from Ivar Aasen was 20.2 mboepd net to Aker BP, up eight percent from the previous quarter. Two new wells drilled in 2020 began producing in the quarter. Production efficiency remained stable at 90 percent.

The Hanz project is progressing, and a new and improved development concept is under evaluation. A concept select decision is planned in second quarter 2021, and first oil is currently expected in first quarter 2024.

A new drilling campaign with two new wells has been sanctioned and a rig has been contracted. First oil is planned in fourth quarter 2021 and first quarter 2022 respectively.

Johan Sverdrup

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Total production	11.5733 %	61 178	59 613	53 051	51 027	43 877

The production at Johan Sverdrup continued with high regularity through the first quarter of 2021, with a new record high 61.2 mboepd net to Aker BP, following the increase in process capacity from 470,000 to 500,000 barrels per day in December.

Another increase in process capacity to 535,000 barrels per day is planned in second quarter 2021.

The 13th oil production well was put on stream late March. With this well completed, the well production capacity is robust for the forecasted increased process capacity.

Phase 2 of the Johan Sverdrup development progressed according to plan, despite challenges caused by COVID-19 at several construction sites. The largest of three modules for the second processing platform, the Main Support Frame (MSF) sailed on plan from Thailand in early April. The three modules will be integrated in May before hook-up and commissioning at Aibel's construction site in Haugesund. Offshore installation at the field centre is planned in the first half of 2022. The jacket constructed by Kværner in Verdal is planned to be installed offshore in June 2021.

Skarv Area

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Total production	23.835 %	28 973	26 121	17 544	20 599	19 788
Production efficiency		84 %	98 %	86 %	97 %	99 %

Production for the quarter was 29.0 mboepd net to Aker BP, up 11 percent from previous quarter driven by Ærfugl phase 1, which started production in November 2020. Production efficiency dropped to 84 (98) percent due to an unplanned shutdown following technical issues with the fire water system.

The Ærfugl Phase 2 project progressed as planned, and the drilling of the two production wells was completed during the quarter. Offshore operations and topside modifications are progressing according to plan. The project remains on schedule for planned production start in fourth quarter 2021.

The Gråsel development project is progressing well. Drilling will commence during the second quarter and first oil is planned in fourth quarter 2021.

Ula Area

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Ula	80 %	5 464	6 239	3 929	4 250	5 512
Tambar	55 %	1 413	1 092	2 595	2 932	3 642
Oda	15 %	1 865	2 959	3 887	3 258	3 623
Total production		8 741	10 290	10 411	10 441	12 777
Production efficiency		80 %	75 %	87 %	80 %	88 %

Production from the Ula area decreased from the previous quarter mainly due to increased water-breakthrough and choke-back of production for the Oda field.

Production efficiency increased to 80 percent due to high uptime on the Ula field and improved well performance on the Tambar field compared to the previous quarter.

The jack-up rig Maersk Integrator arrived at Tambar in February for drilling of an infill well. The drilling operation was completed early April, and the rig moved to Ula for drilling of another infill well.

Valhall Area

KEY FIGURES	AKER BP INTEREST	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Production, boepd
Valhall	90 %	52 526	52 881	51 647	46 750	49 093
Hod	90 %	446	682	682	225	982
Total production		52 972	53 564	52 329	46 975	50 075
Production efficiency		91 %	90 %	90 %	78 %	88 %

First quarter production from Valhall was 53.0 mboepd net to Aker BP, marginally lower than previous quarter. Production efficiency improved slightly to 91 percent.

The partnership has contracted the rig Maersk Reacher to accelerate stimulation and intervention to bring the wells up to full production potential. The rig is expected to arrive during the third quarter.

The Maersk Invincible drilling rig remained at the field centre throughout the quarter to plug and abandon the remaining wells at the old drilling platform (DP) which is scheduled

North of Alvheim, Krafla and Fulla (NOAKA)

The NOAKA area is located between Oseberg and Alvheim in the Norwegian North Sea. The area holds several oil and gas discoveries with gross recoverable resources estimated at more than 500 million barrels of oil equivalents, with further exploration and appraisal potential. The partners in the licences are Aker BP ASA, Equinor ASA and LOTOS Exploration & Production Norge AS.

In 2020 the partners entered into an agreement in principle on commercial terms for a coordinated development of the area. The overall development plans for the area consist of a processing platform in the south operated by Aker BP, an unmanned processing platform in the north operated by Equinor and several satellite platforms and tiebacks to cover the various discoveries.

for removal. The P&A operations were finalized early April. Following the P&A campaign the rig will drill two additional wells on Flank North, and one additional well target is being matured for a final investment decision in the second quarter.

The Hod field development is progressing as planned with construction of a wellhead platform at Kværner Verdal. The project has faced some challenges related to available manning under the prevailing COVID-19 restrictions but mitigating actions have been taken to protect the schedule. The offshore work related to tie-in to existing facilities at Valhall has also been initiated.

During the first quarter, Aker BP continued working with its strategic partners to further mature and improve the development concept for NOA and Fulla. Equinor is the operator for Krafla, and is maturing the Krafla concept in close collaboration with Aker BP to optimize the total area development concept. These activities are progressing well, and the technical concept studies are expected to be finalised by the end of May. The formal concept selection is scheduled for the third quarter 2021, and the company expects to submit Plans for Development and Operations (PDO) in the fourth quarter 2022, in time to qualify for the temporary Norwegian tax rules.

EXPLORATION

Total exploration spend in the first quarter was USD 86 (80) million, while USD 71 (42) million was recognised as exploration expenses in the period, relating to dry well costs, seismic, area fees, field evaluation and G&G costs.

Field evaluation costs are driven by activities related to discoveries and projects which have not yet been sanctioned. In the first quarter, these costs amounted to USD 41 (21) million, with NOAKA as the main driver.

The drilling of the Bask prospect in licence 533 B in the Barents Sea, operated by Lundin, was completed in the quarter. The exploration target for the well was to prove petroleum in reservoir rocks in the lower part of the Torsk Formation from the Early to Middle Palaeocene Age. The well encountered a sandstone layer approximately 90 metres thick, mainly with poor reservoir quality. Although traces of petroleum were found the well is classified as dry. Aker BP has a 35 percent working interest in the licence.

BUSINESS DEVELOPMENT

In March, Aker BP UK, a newly established subsidiary of Aker BP, entered into an agreement with Eni UK to take over a 50 percent interest in licence P2511 on the UK Continental Shelf. Eni UK will remain operator. The assignment transaction is to be formally approved by the UK Oil & Gas Authority.

Licence P2511 is located to the borderline of the Norwegian continental shelf. Aker BP as operator has several discoveries in the Alvheim area on the Norwegian side, following a successful exploration campaign in 2019.

The key objective for the newly established partnership between Eni UK and Aker BP UK is to explore the resource potential across the UK border in the greater Alvheim area.

In the quarter, Aker BP also entered into an agreement with Lundin Energy Norway AS to align ownership interests in the Alvheim area. As part of the agreement, Aker BP reduced its interest in the Trine and Trell area (licences PL036E, PL036F, PL102D, PL102F, PL102G and PL102H) by six percent, and increased its interest in the Froskelår discovery (licence PL869) by five percent and in the Lyderhorn exploration prospect (licence PL1041) by 15 percent. Following the transaction, Aker BP holds 65 percent in Froskelår, 58 percent in Trine, 44 percent in Trell and 55 percent in Lyderhorn. The agreement is subject to customary regulatory approvals.

HEALTH, SAFETY, SECURITY AND THE ENVIRONMENT

HSSE is always the number one priority in all of Aker BP's activities. The company strives to ensure that all its operations, drilling campaigns and projects are carried out under the highest HSSE standards.

KEY HSSE INDICATORS	UNIT	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Total recordable injury frequency (TRIF) L12M 1)	Per mill. exp. hours	1.3	1.2	1.2	1.7	2.4
Serious incident frequency (SIF) L12M 1) 2)	Per mill. exp. hours	0	0.2	0.2	0.2	0.2
Acute spill	Count	0	0	1	0	0
Process safety events Tier 1 and 2	Count	0	0	0	0	0
CO2 emissions intensity (equity share)	Kg CO2/boe	4.2	3.8	4.0	5.3	5.1

1) Positive change in historical numbers for SIF and TRIF in 2020 due to updated exposure hours

2) SIF definition has been adjusted since previous reports to align with NCS industry definitions

The overall HSSE performance continued to show a positive trend. However, there was a slight increase in the total recordable injuries frequency (TRIF) due to two recordable injuries in the first quarter. None of these injuries were classified as serious. The company is monitoring the trend closely and is taking mitigating actions.

The company is working systematically to protect personnel and to ensure continued and uninterrupted production from all assets during the COVID-19 pandemic. The company's policies and procedures have proved effective and will remain in place for as long as necessary.

OUTLOOK

The COVID-19 pandemic has created challenges for the oil industry. Under these extraordinary circumstances, Aker BP's main priorities are the safety of its people and the environment as well as its main financial priorities which are to secure the company's financial robustness, to protect its investment grade credit profile, and to maintain financial flexibility to pursue value-accretive growth opportunities going forward.

The company's financial position continues to be very robust, and the company remains well positioned for future value creation. The main items of the company's financial plan for 2021 are unchanged since previous quarter and are as follows:

• Production of 210-220 mboepd
• Capex of around USD 1.6 billion
• Exploration spend of USD 400-500 million
• Abandonment spend of around USD 200 million
• Production cost of USD 8.5-9.0 per boe
• Dividends of USD 450 million

Most of the company's cost elements (both capex and production cost) are denominated in NOK. The estimated USD amounts are based on an USDNOK exchange rate of 8.5.

FINANCIAL STATEMENTS WITH NOTES

INCOME STATEMENT

			Group
		Q1	Q4	Q1		01.01.-31.03.
(USD 1 000)	Note	2021	2020	2020	2021	2020
Petroleum revenues		1 132 700	830 098	779 084	1 132 700	779 084
Other income		537	3 410	93 021	537	93 021
Total income	2	1 133 238	833 508	872 105	1 133 238	872 105
Production costs	3	175 906	142 068	156 043	175 906	156 043
Exploration expenses	4	70 917	41 722	50 336	70 917	50 336
Depreciation	6	257 554	289 408	277 412	257 554	277 412
Impairments	5,6	29 656	55 302	653 697	29 656	653 697
Other operating expenses		8 225	27 028	223	8 225	223
Total operating expenses		542 258	555 528	1 137 711	542 258	1 137 711
Operating profit/loss		590 980	277 980	-265 606	590 980	-265 606
Interest income		366	89	1 369	366	1 369
Other financial income		9 515	49 203	108 709	9 515	108 709
Interest expenses		47 011	47 640	40 041	47 011	40 041
Other financial expenses		52 717	43 965	218 729	52 717	218 729
Net financial items	8	-89 846	-42 313	-148 691	-89 846	-148 691
Profit/loss before taxes		501 134	235 667	-414 298	501 134	-414 298
Tax expense (+)/income (-)	9	374 104	106 200	-79 564	374 104	-79 564
Net profit/loss		127 029	129 467	-334 734	127 029	-334 734
Weighted average no. of shares outstanding basic and diluted Basic and diluted earnings/loss USD per share		359 839 591 0.35	360 100 643 0.36	359 984 388 -0.93	359 839 591 0.35	359 984 388 -0.93

STATEMENT OF COMPREHENSIVE INCOME

		Group
	Q1	Q4	Q1		01.01.-31.03.
(USD 1 000)	Note 2021	2021	2020	2021	2020
Profit/loss for the period	127 029	129 467	-334 734	127 029	-334 734
Items which will not be reclassified over profit and loss (net of taxes) Actuarial gain/loss pension plan	-	9	-	-	-
Total comprehensive income/loss in period	127 029	129 477	-334 734	127 029	-334 734

STATEMENT OF FINANCIAL POSITION

		Group
(USD 1 000)	Note	31.03.2021	31.12.2020	31.03.2020
ASSETS
Intangible assets
Goodwill	6	1 647 436	1 647 436	1 647 436
Capitalized exploration expenditures	6	462 637	521 922	478 761
Other intangible assets	6	1 416 065	1 521 311	1 522 389
Tangible fixed assets
Property, plant and equipment	6	7 392 321	7 266 137	7 060 700
Right-of-use assets	6	126 861	132 735	170 834
Financial assets
Long-term receivables		74 927	29 086	23 400
Other non-current assets		29 042	30 210	9 869
Long-term derivatives	12	5 955	12 841	-
Total non-current assets		11 155 243	11 161 678	10 913 389
Inventories
Inventories		110 895	112 704	97 337
Receivables
Trade receivables		274 510	297 880	19 529
Other short-term receivables	10	283 742	286 817	307 635
Short-term derivatives	12	24 532	23 212	66 611
Cash and cash equivalents
Cash and cash equivalents	11	392 276	537 801	322 789
Total current assets		1 085 955	1 258 414	813 902
TOTAL ASSETS		12 241 198	12 420 091	11 727 291

STATEMENT OF FINANCIAL POSITION

	Group
(USD 1 000)	Note	31.03.2021	31.12.2020	31.03.2020
EQUITY AND LIABILITIES
Equity
Share capital		57 056	57 056	57 056
Share premium		3 637 297	3 637 297	3 637 297
Other equity		-1 705 359	-1 707 071	-1 881 123
Total equity		1 988 993	1 987 281	1 813 229
Non-current liabilities
Deferred taxes	9	2 781 602	2 642 461	2 153 376
Long-term abandonment provision	16	2 665 343	2 650 263	2 642 264
Long-term bonds	14	3 474 328	3 968 566	3 120 062
Long-term derivatives	12	-	-	56 982
Long-term lease debt	7	115 299	131 856	179 501
Other interest-bearing debt	15	-	-	280 784
Total non-current liabilities		9 036 572	9 393 146	8 432 968
Current liabilities
Trade creditors		83 157	113 517	117 681
Short-term bonds	14	-	-	192 541
Accrued public charges and indirect taxes		18 226	25 761	15 482
Tax payable	9	452 131	163 352	260 081
Short-term derivatives	12	6 293	3 539	153 527
Short-term abandonment provision	16	87 850	155 244	153 043
Short-term lease debt	7	85 047	83 904	97 855
Other current liabilities	13	482 929	494 346	490 884
Total current liabilities		1 215 633	1 039 664	1 481 094
Total liabilities		10 252 205	10 432 810	9 914 063
TOTAL EQUITY AND LIABILITIES		12 241 198	12 420 091	11 727 291

STATEMENT OF CHANGES IN EQUITY - GROUP

				Other equity
					Other comprehensive income
(USD 1 000)	Share capital	Share premium	Other paid-in capital	Actuarial gains/losses	Foreign currency translation reserves1)	Accumulated deficit	Total other equity	Total equity
Equity as of 31.12.2019	57 056	3 637 297	573 083	-85	-115 491	-1 784 274	-1 326 767	2 367 585
Dividend distributed	-	-	-	-	-	-212 500	-212 500	-212 500
Profit/loss for the period	-	-	-	-	-	-334 734	-334 734	-334 734
Purchase of treasury shares	-	-	-	-	-	-7 122	-7 122	-7 122
Equity as of 31.03.2020	57 056	3 637 297	573 083	-85	-115 491	-2 338 630	-1 881 123	1 813 229
Dividend distributed Profit/loss for the period	- -	- -	- -	- -	- -	-212 500 379 449	-212 500 379 449	-212 500 379 449
Purchase/sale of treasury shares	-	-	-	-	-	7 094	7 094	7 094
Other comprehensive income for the period	-	-	-	9	-	-	9	9
Equity as of 31.12.2020	57 056	3 637 297	573 083	-76	-115 491	-2 164 587	-1 707 071	1 987 281
Dividend distributed Profit/loss for the period Purchase of treasury shares2)	- - -	- - -	- - -	- - -	- - -	-112 500 127 029 -12 818	-112 500 127 029 -12 818	-112 500 127 029 -12 818
Equity as of 31.03.2021	57 056	3 637 297	573 083	-76	-115 491	-2 162 875	-1 705 359	1 988 993

1) The amount arose mainly as a result of the change in functional currency in 2014.

2) The treasury shares are purchased/sold for use in the company's share saving plan.

STATEMENT OF CASH FLOW

	Group
		Q1	Q4	Q1	01.01.-31.03.
			Restated	Restated		Restated
(USD 1 000)	Note	2021	2020	2020	2021	2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit/loss before taxes		501 134	235 667	-414 298	501 134	-414 298
Taxes paid	9	-	-16 556	-48 150	-	-48 150
Taxes refunded	9	11 420	217 373	-	11 420	-
Depreciation	6	257 554	289 408	277 412	257 554	277 412
Impairment	5,6	29 656	55 302	653 697	29 656	653 697
Accretion expenses	8,16	27 668	29 298	29 265	27 668	29 265
Total interest expenses (excluding amortized loan costs)	8	39 638	44 559	35 004	39 638	35 004
Changes in derivatives	2,8	8 321	-43 728	103 609	8 321	103 609
Amortized loan costs	8	7 372	3 081	5 036	7 372	5 036
Expensed capitalized dry wells	4,6	12 201	6 071	28 982	12 201	28 982
Changes in inventories, trade creditors and receivables		-5 181	-199 547	136 856	-5 181	136 856
Changes in other current balance sheet items		10 577	57 211	-237 162	10 577	-237 162
NET CASH FLOW FROM OPERATING ACTIVITIES		900 358	678 138	570 252	900 358	570 252
CASH FLOW FROM INVESTMENT ACTIVITIES
Payment for removal and decommissioning of oil fields		-78 576	-85 508	-20 929	-78 576	-20 929
Disbursements on investments in fixed assets (excluding capitalized interest)		-216 162	-297 219	-329 608	-216 162	-329 608
Disbursements on investments in capitalized exploration		-26 978	-43 774	-31 253	-26 978	-31 253
NET CASH FLOW FROM INVESTMENT ACTIVITIES		-321 717	-426 501	-381 790	-321 717	-381 790
CASH FLOW FROM FINANCING ACTIVITIES
Net drawdown/repayment of revolving credit facility		-	-	-1 150 000	-	-1 150 000
Repayment of bonds		-514 690	-406 000	-	-514 690	-
Net proceeds from bond issue		-	-	1 483 906	-	1 483 906
Interest paid (including interest element of lease payments)		-62 585	-35 966	-55 954	-62 585	-55 954
Payments on lease debt related to investments in fixed assets		-740	-971	-26 606	-740	-26 606
Payments on other lease debt		-20 051	-18 873	-5 183	-20 051	-5 183
Paid dividend		-112 500	-70 833	-212 500	-112 500	-212 500
Net purchase/sale of treasury shares		-12 818	-	-7 122	-12 818	-7 122
NET CASH FLOW FROM FINANCING ACTIVITIES		-723 384	-532 642	26 541	-723 384	26 541
Net change in cash and cash equivalents		-144 742	-281 006	215 002	-144 742	215 002
Cash and cash equivalents at start of period		537 801	818 547	107 104	537 801	107 104
Effect of exchange rate fluctuation on cash held		-783	259	682	-783	682
CASH AND CASH EQUIVALENTS AT END OF PERIOD	11	392 276	537 801	322 789	392 276	322 789

NOTES

(All figures in USD 1 000 unless otherwise stated)

These condensed consolidated interim financial statements ("interim financial statements") have been prepared in accordance with the International Financial Reporting Standards as adopted by the EU ("IFRS") IAS 34 "Interim Financial Reporting", thus the interim financial statements do not include all information required by IFRS and should be read in conjunction with the group's 2020 annual financial statements. The interim financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position, results of operations and cash flows for the dates and interim periods presented. Interim period results are not necessarily indicative of results of operations or cash flows for an annual period. These interim financial statements have been subject to a review in accordance with the International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

These interim financial statements were authorised for issue by the company's Board of Directors on 27 April 2021.

Note 1 Accounting principles

The accounting principles used for this interim report are consistent with the principles used in the group's 2020 annual financial statements, except for a change in presentation of payment of borrowing costs in the statement of cash flows. From Q1 2021, the group will present these cash flows as financing activities, while they prior to 2021 have been presented as operational and investment activities. The reason behind the change is that borrowing costs are directly linked to the company's financing activities, and are thus deemed more relevant to include under financing activities. Comparative figures have been restated accordingly and the impact on previous periods is included in the table below.

	Q4	Q1
Breakdown of restating impact on Statetment of Cash Flow (USD 1 000)	2020	2020
NET CASH FLOW FROM OPERATING ACTIVITIES
- Prior to restating	645 014	523 698
- After restating	678 138	570 252
Change	33 124	46 554
NET CASH FLOW FROM INVESTMENT ACTIVITIES
- Prior to restating	-435 343	-394 691
- After restating	-426 501	-381 790
Change	8 842	12 900
NET CASH FLOW FROM FINANCING ACTIVITIES
- Prior to restating	-490 677	85 995
- After restating	-532 642	26 541
Change	-41 966	-59 454
Impact on net change in cash and cash equivalents	-	-

In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty are in all material respects the same as those that applied in the group's 2020 annual financial statements. The COVID-19 pandemic and associated uncertainties and disruption to the global economy may have negative effects on demand for oil and gas and / or result in interruptions to the company's operations. Such events may adversely impact the company's future results from operations and cash flows, and may lead to impairment of assets.

Note 2 Income

	Group
	Q1	Q4	Q1		01.01.-31.03.
Breakdown of petroleum revenues (USD 1 000)	2021	2020	2020	2021	2020
Sales of liquids	989 511	714 514	708 927	989 511	708 927
Sales of gas	139 224	111 431	66 187	139 224	66 187
Tariff income	3 966	4 154	3 971	3 966	3 971
Total petroleum revenues	1 132 700	830 098	779 084	1 132 700	779 084
Sales of liquids (boe 1 000)	16 468	16 165	15 858	16 468	15 858
Sales of gas (boe 1 000)	3 620	3 507	3 026	3 620	3 026
Other income (USD 1 000)
Realized gain/loss (-) on oil derivatives	-3 044	-7 611	14 483	-3 044	14 483
Unrealized gain/loss (-) on oil derivatives	-2 312	1 718	68 416	-2 312	68 416
Other income1)	5 893	9 302	10 122	5 893	10 122
Total other income	537	3 410	93 021	537	93 021

1) Includes partner coverage of RoU assets recognized on gross basis in the balance sheet and used in operated activity.

Note 3 Production costs

	Group
	Q1	Q4	Q1	01.01.-31.03.
Breakdown of production cost (USD 1 000)	2021	2020	2020	2021	2020
Cost of operations	112 523	108 169	114 340	112 523	114 340
Shipping and handling	47 719	47 990	41 918	47 719	41 918
Environmental taxes	10 834	9 190	8 960	10 834	8 960
Production cost based on produced volumes	171 076	165 349	165 218	171 076	165 218
Adjustment for over/underlift (-)	4 830	-23 281	-9 175	4 830	-9 175
Production cost based on sold volumes	175 906	142 068	156 043	175 906	156 043
Total produced volumes (boe 1 000)	19 999	20 525	18 938	19 999	18 938
Production cost per boe produced (USD/boe)	8.6	8.1	8.7	8.6	8.7

Note 4 Exploration expenses

	Group
	Q1	Q4	Q1		01.01.-31.03.
Breakdown of exploration expenses (USD 1 000)	2021	2020	2020	2021	2020
Seismic	4 213	1 627	2 402	4 213	2 402
Area fee	4 167	3 877	3 773	4 167	3 773
Field evaluation	40 643	21 308	6 531	40 643	6 531
Dry well expenses1)	12 201	6 071	28 982	12 201	28 982
Other exploration expenses	9 693	8 839	8 650	9 693	8 650
Total exploration expenses	70 917	41 722	50 336	70 917	50 336

1) Dry well expenses in Q1 2021 are mainly related to the Bask well.

Note 5 Impairments

Impairment testing

Impairment tests of individual cash-generating units are performed when impairment/reversal triggers are identified, and goodwill is tested for impairment at least annually. In Q1 2021, two categories of impairment tests have been performed:

• Impairment test of fixed assets and related intangible assets, including technical goodwill
• Impairment test of residual goodwill

Impairment is recognized when the book value of an asset or a cash-generating unit, including associated goodwill, exceeds the recoverable amount. Correspondingly, a reversal of impairment is recognized when the recoverable amount exceeds the book value. Prior period impairment of goodwill is not subject to reversal. The recoverable amount is the higher of the asset's fair value less cost to sell and value in use. The impairment testing for Q1 has been performed in accordance with the fair value method (level 3 in fair value hierarchy) and based on discounted cash flows. The expected future cash flow is discounted to the net present value by applying a discount rate after tax that reflects the current market valuation of the time value of money, and the specific risk related to the asset. The discount rate is derived from the weighted average cost of capital (WACC) for a market participant. Cash flows are projected for the estimated lifetime of the fields, which may exceed periods greater than five years.

For producing licenses and licenses in the development phase, recoverable amount is estimated based on discounted future after tax cash flows. Below is an overview of the key assumptions applied for impairment testing purposes as of 31 March 2021.

Prices

Future price level is a key assumption and has significant impact on the net present value. Forecasted oil and gas prices are based on management's estimates and available market data. Information about market prices in the near future can be derived from the futures contract market. The information about future prices is less reliable on a long-term basis, as there are fewer observable market transactions going forward. In the impairment test, the oil and gas prices are therefore based on the forward curve from the beginning of Q2 2021 to the end of Q1 2024. From Q2 2024, the oil and gas prices are based on the company's long-term price assumptions. Long-term oil price assumption is unchanged from year-end 2020.

The nominal oil prices applied in the impairment test are as follows:

Year	USD/BOE
2021	61.9
2022	58.4
2023	56.2
2024	65.5
From 2025 (in real terms)	65.0

The nominal gas prices applied in the impairment test are as follows:

Year	GBP/therm
2021	0.49
2022	0.47
2023	0.44
2024	0.50
From 2025 (in real terms)	0.48

Oil and gas reserves

Future cash flows are calculated on the basis of expected production profiles and estimated proven and probable remaining reserves.

Future expenditure

Future capex, opex and abandonment cost are calculated based on the expected production profiles and the best estimate of the related cost.

Discount rate

The post tax nominal discount rate used is 8.1 percent, consistent with the rate applied at Q4 2020.

Currency rates
Year	USD/NOK
2021	8.55
2022	8.56
2023	8.62
2024	8.17
From 2025	8.00

Inflation

The long-term inflation rate is assumed to be 2.0 percent.

Impairment testing of assets including technical goodwill

The technical goodwill recognized in previous business combinations is allocated to each CGU for the purpose of impairment testing. Hence, the impairment test of technical goodwill is included in the impairment testing of assets, and the technical goodwill is written down before the asset. The carrying value of the assets is the sum of tangible assets, intangible assets and technical goodwill as of the assessment date. In line with the methodology described in the annual report, deferred tax (from the date of acquisitions) reduces the net carrying value prior to the impairment charges. When deferred tax liabilities from the acquisitions decreases as a result of depreciation, more goodwill is as such exposed for impairment. This may lead to future impairment charges even though other assumptions remain stable.

Below is an overview of the impairment charge and the reversal of impairment and the carrying value per cash generating unit where impairments and reversals have been recognized in Q1 2021:

Cash-generating unit (USD 1 000)	Ula/Tambar	Ivar Aasen
Net carrying value	707 844	892 856
Recoverable amount	590 298	980 745
Impairment/reversal (-)	117 546	-87 890
Allocated as follows:
Technical goodwill	-	-
Other intangible assets/license rights	85 444	-2 652
Tangible fixed assets	32 102	-85 237

The main reasons for the Ula/Tambar impairment charge are the effect of updated cost and production profiles offset by the increase in short-term oil and gas prices, while the impairment reversal on Ivar Aasen is mainly caused by the increase in short-term oil and gas prices.

For details of the allocation of the impairment/reversal to tangible fixed assets and intangible assets, see note 6.

Sensitivity analysis

The table below shows how the impairment or reversal of impairment of assets and technical goodwill would be affected by changes in the various assumptions, given that the remaining assumptions are constant. The CGU's impacted are Ula/Tambar, Ivar Aasen and Alvheim.

	Change in impairment after
Assumption (USD 1 000)	Change	Increase in assumptions	Decrease in assumptions
Oil and gas price forward period	+/- 50 %	-220 346	622 733
Oil and gas price long-term	+/- 20 %	-159 790	342 217
Production profile (reserves)	+/- 5 %	-67 422	132 637
Discount rate	+/- 1 % point	60 070	-15 601
Currency rate USD/NOK	+/- 2.0 NOK	-183 390	425 037
Inflation	+/- 1 % point	-39 101	70 030

Residual goodwill

Residual goodwill is allocated across all CGUs for impairment testing. The combined recoverable amount exceeds the carrying amount by a substantial margin.

Note 6 Tangible fixed assets and intangible assets

TANGIBLE FIXED ASSETS - GROUP

Property, plant and equipment		Production	Fixtures and
	Assets under	facilities	fittings, office
(USD 1 000)	development	including wells	machinery	Total
Book value 31.12.2019	1 250 365	5 687 957	84 954	7 023 276
Acquisition cost 31.12.2019	1 250 365	9 066 022	170 413	10 486 800
Additions	586 301	739 166	21 954	1 347 421
Disposals/retirement	-	675 733	-69	675 664
Reclassification	-747 913	757 420	48 867	58 375
Acquisition cost 31.12.2020	1 088 754	9 886 875	241 304	11 216 933
Accumulated depreciation and impairments 31.12.2019	-	3 378 065	85 459	3 463 524
Depreciation	-	963 619	40 776	1 004 395
Impairment/reversal (-)	-	67 099	-	67 099
Disposals/retirement depreciation	-	-584 292	69	-584 223
Accumulated depreciation and impairments 31.12.2020	-	3 824 491	126 305	3 950 795
Book value 31.12.2020	1 088 754	6 062 384	114 999	7 266 137
Acquisition cost 31.12.2020	1 088 754	9 886 875	241 304	11 216 933
Additions	137 414	87 760	6 073	231 247
Disposals/retirement	-	-	-	-
Reclassification1)	-172 675	244 384	2 597	74 305
Acquisition cost 31.03.2021	1 053 493	10 219 019	249 974	11 522 485
Accumulated depreciation and impairments 31.12.2020	-	3 824 491	126 305	3 950 795
Depreciation	-	221 906	10 598	232 504
Impairment/reversal (-)	-	-53 135	-	-53 135
Disposals/retirement depreciation	-	-	-	-
Accumulated depreciation and impairments 31.03.2021	-	3 993 262	136 903	4 130 165
Book value 31.03.2021	1 053 493	6 225 757	113 071	7 392 321

1) The reclassification relates to wells which have started production during Q1 2021.

Production facilities, including wells, are depreciated in accordance with the unit-of-production method. Office machinery, fixtures and fittings etc. are depreciated using the straightline method over their useful life, i.e. 3 - 5 years. Removal and decommissioning costs are included as production facilities or fields under development.

Right-of-use assets
		Vessels and
(USD 1 000)	Drilling Rigs	Boats	Office	Other	Total
Book value 31.12.2019	101 487	68 941	21 774	2 127	194 328
Acquisition cost 31.12.2019	106 856	72 106	29 593	2 303	210 859
Additions	-	-	16 834	-	16 834
Allocated to abandonment activity	-11 236	-1 199	-	-	-12 435
Disposals/retirement	16 197	5 920	-	-	22 117
Reclassification	-31 461	-2 972	-	-	-34 432
Acquisition cost 31.12.2020	47 963	62 016	46 427	2 303	158 709
Accumulated depreciation and impairments 31.12.2019	5 369	3 166	7 820	177	16 531
Depreciation	9 265	2 827	7 082	177	19 350
Impairment/reversal (-)	-	-	-	-	-
Disposals/retirement depreciation	-8 535	-1 373	-	-	-9 907
Accumulated depreciation and impairments 31.12.2020	6 099	4 620	14 902	353	25 974
Book value 31.12.2020	41 864	57 395	31 525	1 950	132 735
Acquisition cost 31.12.2020	47 963	62 016	46 427	2 303	158 709
Additions	-	-	5 282	-	5 282
Allocated to abandonment activity1)	-7 388	-932	-	-	-8 319
Disposals/retirement	-	-	-	-	-
Reclassification2)	-	-242	-	-	-242
Acquisition cost 31.03.2021	40 575	60 842	51 709	2 303	155 430
Accumulated depreciation and impairments 31.12.2020	6 099	4 620	14 902	353	25 974
Depreciation	-	490	2 060	44	2 595
Impairment/reversal (-)	-	-	-	-	-
Disposals/retirement depreciation	-	-	-	-	-
Accumulated depreciation and impairments 31.03.2021	6 099	5 110	16 962	397	28 569
Book value 31.03.2021	34 476	55 732	34 747	1 906	126 861

1) This represents the share of right-of-use assets used in abandonment activity, and thus booked against the abandonment provision.

2) Reclassified to tangible fixed assets in line with the activity of the right-of-use asset.

Right-of-use assets are depreciated linearly over the lifetime of the related lease contract.

INTANGIBLE ASSETS - GROUP

		Other intangible assets
(USD 1 000)	Licenses etc.	Software	Total	expenditures	Goodwill
Book value 31.12.2019	1 915 968	-	1 915 968	621 315	1 712 809
Acquisition cost 31.12.2019	2 396 433	7 501	2 403 934	621 315	2 738 973
Additions		-		127 283	-
Disposals/retirement/expensed dry wells	27 448	-	27 448	56 626	12 391
Reclassification	-	-	-	-23 942	-
Acquisition cost 31.12.2020	2 368 985	7 501	2 376 486	668 029	2 726 583
Accumulated depreciation and impairments 31.12.2019	480 465	7 501	487 966	-	1 026 165
Depreciation	98 073	-	98 073	-	-
Impairment/reversal (-)	294 549	-	294 549	146 107	65 373
Disposals/retirement depreciation	-25 413	-	-25 413	-	-12 391
Accumulated depreciation and impairments 31.12.2020	847 674	7 501	855 175	146 107	1 079 146
Book value 31.12.2020	1 521 311	-	1 521 311	521 922	1 647 436
Acquisition cost 31.12.2020	2 368 985	7 501	2 376 486	668 029	2 726 583
Additions		-		26 978	-
Disposals/retirement/expensed dry wells	-	-	-	12 201	-
Reclassification	-	-	-	-74 063	-
Acquisition cost 31.03.2021	2 368 985	7 501	2 376 486	608 743	2 726 583
Accumulated depreciation and impairments 31.12.2020	847 674	7 501	855 175	146 107	1 079 146
Depreciation	22 455	-	22 455	-	-
Impairment/reversal (-)	82 791	-	82 791	-	-
Disposals/retirement depreciation	-	-	-	-	-
Accumulated depreciation and impairments 31.03.2021	952 920	7 501	960 421	146 107	1 079 146
Book value 31.03.2021	1 416 065	-	1 416 065	462 637	1 647 436

Licenses include both planned and producing projects on various fields. The producing projects are depreciated in line with the unit-of-production method for the applicable field.

		Group
	Q1	Q4	Q1		01.01.-31.03.
Depreciation in the income statement (USD 1 000)	2021	2020	2020	2021	2020
Depreciation of tangible fixed assets	232 504	262 720	245 134	232 504	245 134
Depreciation of right-of-use assets	2 595	2 156	3 738	2 595	3 738
Depreciation of other intangible assets	22 455	24 532	28 540	22 455	28 540
Total depreciation in the income statement	257 554	289 408	277 412	257 554	277 412
Impairment in the income statement (USD 1 000)
Impairment/reversal of tangible fixed assets	-53 135	57 607	78 459	-53 135	78 459
Impairment/reversal of other intangible assets	82 791	-2 305	365 040	82 791	365 040
Impairment/reversal of capitalized exploration expenditures	-	-	144 826	-	144 826
Impairment of goodwill	-	-	65 373	-	65 373

Total impairment in the income statement 29 656 55 302 653 697 29 656 653 697

Note 7 Leasing

The incremental borrowing rate applied in discounting of the nominal lease debt is between 2.71 percent and 6.71 percent, dependent on the duration of the lease and when it was intially recognized.

		Group
	2021	2020	2020
(USD 1 000)	Q1	Q1	01.01.-31.12.
Lease debt as of beginning of period	215 760	313 256	313 256
New lease debt recognized in the period	5 282	-	16 834
Payments of lease debt1)	-24 199	-36 699	-118 224
Lease debt derecognized in the period	-	-	-12 767
Interest expense on lease debt	3 407	4 911	16 629
Currency exchange differences	96	-4 111	32
Total lease debt	200 346	277 356	215 760
Short-term	85 047	97 855	83 904
Long-term	115 299	179 501	131 856
1) Payments of lease debt split by activities (USD 1 000):
Investments in fixed assets	861	30 716	67 125
Abandonment activity	19 778	1 521	27 660
Operating expenditures	1 803	3 116	18 075
Exploration expenditures	495	221	874
Other income	1 261	1 126	4 489
Total	24 199	36 699	118 224
Nominal lease debt maturity breakdown (USD 1 000):
Within one year	95 208	113 045	95 124
Two to five years	84 512	153 037	99 809
After five years	55 107	57 693	57 464
Total	234 827	323 775	252 397

The identified leases have no significant impact on the group`s financing, loan covenants or dividend policy. The group does not have any residual value guarantees. Extension options are included in the lease liability when, based on management's judgement, it is reasonably certain that an extension will be exercised.

Note 8 Financial items

	Group
	Q1	Q4	Q1	01.01.-31.03.
(USD 1 000)	2021	2020	2020	2021	2020
Interest income	366	89	1 369	366	1 369
Realized gains on derivatives	9 515	7 193	3 739	9 515	3 739
Change in fair value of derivatives	-	42 010	-		-
Net currency gains	-	-	104 970	-	104 970
Total other financial income	9 515	49 203	108 709	9 515	108 709
Interest expenses	44 451	49 869	42 994	44 451	42 994
Interest on lease debt	3 407	3 531	4 911	3 407	4 911
Capitalized interest cost, development projects	-8 220	-8 842	-12 900	-8 220	-12 900
Amortized loan costs1)	7 372	3 081	5 036	7 372	5 036
Total interest expenses	47 011	47 640	40 041	47 011	40 041
Net currency loss	3 168	5 501	-	3 168	-
Realized loss on derivatives	863	9 121	11 036	863	11 036
Change in fair value of derivatives	6 008	-	172 025	6 008	172 025
Accretion expenses	27 668	29 298	29 265	27 668	29 265
Other financial expenses1)	15 009	45	6 403	15 009	6 403
Total other financial expenses	52 717	43 965	218 729	52 717	218 729
Net financial items	-89 846	-42 313	-148 691	-89 846	-148 691

1) Includes USD 4.2 million in remaining unamortized fees and USD 14.7 million in early redemption premium on the USD 500 million 5.875% Senior Notes due 2025, which was redeemed on 31 March 2021.

Note 9 Tax

	Group
	Q1	Q4	Q1		01.01.-31.03.
Tax for the period (USD 1 000)	2021	2020	2020	2021	2020
Current year tax payable/receivable	228 646	25 836	-5 348	228 646	-5 348
Change in current year deferred tax	141 355	79 900	-78 385	141 355	-78 385
Prior period adjustments	4 103	463	4 169	4 103	4 169
Tax expense (+)/income (-)	374 104	106 200	-79 564	374 104	-79 564

		Group
	2021	2020	2020
Calculated tax payable (-)/tax receivable (+) (USD 1 000)	Q1	Q1	01.01.-31.12.
Tax payable/receivable at beginning of period	-163 352	-361 157	-361 157
Current year tax payable/receivable	-228 646	5 348	333 104
Tax payable/receivable related to acquisitions/sales	-	-	-3 855
Net tax payment/refund	-11 420	48 150	-180 922
Prior period adjustments and change in estimate of uncertain tax positions	-48 390	-7 764	-10 425
Currency movements of tax payable/receivable	-323	55 343	59 903
Net tax payable (-)/receivable (+)	-452 131	-260 081	-163 352
Tax receivable included as current assets (+)	-	-	-
Tax payable included as current liabilities (-)	-452 131	-260 081	-163 352

	Group
	2021	2020	2020
Deferred tax liability (-)/asset (+) (USD 1 000)	Q1	Q1	01.01.-31.12.
Deferred tax liability/asset at beginning of period	-2 642 461	-2 235 357	-2 235 357
Change in current year deferred tax	-141 355	78 385	-448 393
Deferred tax related to acquisitions/sales	-	-	37 727
Prior period adjustments	2 214	3 595	3 595
Deferred tax charged to OCI and equity	-	-	-33
Net deferred tax liability (-)/asset (+)	-2 781 602	-2 153 376	-2 642 461

	Group
	Q1	Q4	Q1	01.01.-31.03.
Reconciliation of tax expense (USD 1 000)	2021	2020	2020	2021	2020
78 % tax rate on profit/loss before tax	390 884	183 820	-323 152	390 884	-323 152
Tax effect of uplift	-48 564	-61 301	-35 291	-48 564	-35 291
Permanent difference on impairment	-1 320	1 497	170 786	-1 320	170 786
Foreign currency translation of NOK monetary items	2 397	3 026	-78 670	2 397	-78 670
Foreign currency translation of USD monetary items	9 354	229 697	-411 206	9 354	-411 206
Tax effect of financial and other 22 % items	18 588	-107 953	242 250	18 588	242 250
Currency movements of tax balances1)	-3 600	-153 368	351 367	-3 600	351 367
Other permanent differences, prior period adjustments and change in estimate of	6 365	10 782	4 351	6 365	4 351
uncertain tax positions
Tax expense (+)/income (-)	374 104	106 200	-79 564	374 104	-79 564

1) Tax balances are in NOK and converted to USD using the period end currency rate. When NOK weakens against USD, the tax rate increases as there is less remaining tax depreciation measured in USD (and vice versa).

In accordance with statutory requirements, the calculation of current tax is required to be based on NOK functional currency. This may impact the effective tax rate as the company's functional currency is USD.

Note 10 Other short-term receivables

		Group
(USD 1 000)	31.03.2021	31.12.2020	31.03.2020
Prepayments	63 972	59 635	80 134
VAT receivable	7 326	6 770	6 796
Underlift of petroleum	40 584	53 537	49 152
Accrued income from sale of petroleum products	80 843	49 441	78 019
Other receivables, mainly balances with license partners	91 018	117 433	93 534
Total other short-term receivables	283 742	286 817	307 635

Note 11 Cash and cash equivalents

The item 'Cash and cash equivalents' consists of bank accounts and short-term investments that constitute parts of the group's transaction liquidity.

	Group
31.03.2021	31.12.2020	31.03.2020
392 276	537 801	322 789
392 276	537 801	322 789
4 000 000	4 000 000	3 700 000

Note 12 Derivatives

		Group
(USD 1 000)	31.03.2021	31.12.2020	31.03.2020
Unrealized gain currency contracts	5 513	12 841	-
Unrealized gain on commodity contracts	442	-	-
Long-term derivatives included in assets	5 955	12 841	-
Unrealized gain on commodity contracts	-	-	66 611
Unrealized gain on currency contracts	24 532	23 212	-
Short-term derivatives included in assets	24 532	23 212	66 611
Total derivatives included in assets	30 487	36 053	66 611
Unrealized losses currency contracts	-	-	56 982
Long-term derivatives included in liabilities	-	-	56 982
Unrealized losses commodity derivatives	6 293	3 539	-
Unrealized losses interest rate swaps	-	-	73 727
Unrealized losses currency contracts	-	-	79 800
Short-term derivatives included in liabilities	6 293	3 539	153 527
Total derivatives included in liabilities	6 293	3 539	210 509

The company has various types of economic hedging instruments. Commodity derivatives are used to hedge the risk of oil price reduction. The company currently has limited exposure towards fluctuations in interest rate, but generally manages such exposure by using interest rate derivatives. Foreign currency exchange derivatives are used to manage the company's exposure to currency risks, mainly costs in NOK, EUR and GBP. These derivatives are mark to market with changes in market value recognized in the income statement. The nature of the instruments and the valuation method is consistent with the disclosed information in the annual financial statements as at 31 December 2020.

Note 13 Other current liabilities

	Group
Breakdown of other current liabilities (USD 1 000)	31.03.2021	31.12.2020	31.03.2020
Balances with license partners	14 810	20 915	47 198
Share of other current liabilities in licenses	250 378	245 158	269 887
Overlift of petroleum	3 207	11 331	9 123
Payroll liabilities, accrued interest and other provisions	214 535	216 942	164 676
Total other current liabilities	482 929	494 346	490 884

Note 14 Bonds

			Group
Senior unsecured bonds (USD 1 000)	Maturity	31.03.2021	31.12.2020	31.03.2020
AKERBP – Senior Notes 6.000% (17/22)	Jul 2022	-	-	395 537
AKERBP – Senior Notes 4.750% (19/24)	Jun 2024	743 806	743 329	741 900
AKERBP – Senior Notes 3.000% (20/25)	Jan 2025	496 636	496 417	495 712
AKERBP – Senior Notes 5.875% (18/25)1)	Mar 2025	-	495 523	494 733
AKERBP – Senior Notes 2.875% (20/26)	Jan 2026	496 571	496 394	-
AKERBP – Senior Notes 3.750% (20/30)	Jan 2030	993 030	992 764	992 180
AKERBP – Senior Notes 4.000% (20/31)	Jan 2031	744 285	744 139	-
Long-term bonds - book value		3 474 328	3 968 566	3 120 062
Long-term bonds - fair value		3 619 250	4 191 375	2 568 155
DETNOR02 Senior unsecured bond	Jul 2020	-	-	192 541
Short-term bonds - book value		-	-	192 541
Short-term bonds - fair value		-	-	198 847

1) The bond was redeemed on 31 March 2021.

Interest is paid on a semi annual basis. None of the bonds have financial covenants.

Note 15 Other interest-bearing debt

		Group
(USD 1 000)	31.03.2021	31.12.2020	31.03.2020
Revolving credit facility1)	-	-	280 784
Other interest-bearing debt	-	-	280 784

1) The RCF is undrawn as at 31 March 2021 and the remaining unamortized fees of USD 14.4 million related to the facility are therefore included in other non-current assets.

The senior unsecured Revolving Credit Facility (RCF) was established in May 2019 and comprise a 3-year USD 2.0 billion Working Capital Facility and a USD 2.0 billion 5-year Liquidity Facility. The Liquidity Facility includes two 12-month extension options, of which the first was exercised in April 2020. The interest rate is LIBOR plus a margin of 1.00 percent for the Liquidity Facility and 1.25 percent for the Working Capital Facility. In addition, a utilization fee is applicable for the Liquidity Facility. A commitment fee of 35 percent of applicable margin is paid on the undrawn facility. The financial covenants are as follows:

• Leverage Ratio: Total net debt divided by EBITDAX shall not exceed 3.5 times

• Interest Coverage Ratio: EBITDA divided by Interest expenses shall be a minimum of 3.5 times

The financial covenants are calculated on a 12 months rolling basis. As at 31 March 2021 the Leverage Ratio is 1.23 and Interest Coverage Ratio is 11.3 (see APM section for further details), which are well within the thresholds mentioned above. Based on the company's current business plans and applying oil and gas price forward curves at end of Q1 2021, the group's estimates show that the financial covenants will continue to be within the thresholds by a substantial margin.

The financial covenants in the group's current debt facilities exclude the effects from IFRS 16, and therefore cannot be directly derived from the group's financial statements. See reconciliations of Alternative Performance Measures for detailed information.

In April 2021, the RCF was amended. See more information in note 18.

Note 16 Provision for abandonment liabilities

		Group
	2021	2020	2020
(USD 1 000)	Q1	Q1	01.01.-31.12.
Provisions as of beginning of period	2 805 507	2 788 218	2 788 218
Change in abandonment liability due to asset sales	-	-	-13 122
Incurred removal cost	-86 896	-22 176	-162 741
Accretion expense	27 668	29 265	116 947
Impact of changes to discount rate	-	-	20 554
Change in estimates and provisions relating to new drilling and installations	6 914	-	55 650
Total provision for abandonment liabilities	2 753 193	2 795 306	2 805 507
Short-term	87 850	153 043	155 244
Long-term	2 665 343	2 642 264	2 650 263

Estimates are based on executing a concept for abandonment in accordance with the Petroleum Activities Act and international regulations and guidelines. The calculations assume an inflation rate of 2.0 percent and a nominal discount rate before tax of between 3.1 percent and 4.6 percent. The credit margin included in the discount rate is 3.0 percent.

Note 17 Contingent liabilities and assets

During the normal course of its business, the group will be involved in disputes, including tax disputes. The group has made accruals for probable liabilities related to litigation and claims based on management's best judgment and in line with IAS 37 and IAS 12.

Note 18 Subsequent events

On 27 April 2021, Aker BP received firm committments from a consortium of banks for an extension of its Revolving Credit Facilities. The Working Capital Facility will be extended from 2022 to 2024, with options for up to two years extension. The committed amount is reduced from USD 2.0 billion to USD 1.4 billion. The Liquidity Facility will be extended from 2025 to 2026. The committed amount remains USD 2.0 billion until 2025 and then reduces to USD 1.65 billion for the final year. Other terms of the facilities remain unchanged.

Note 19 Investments in joint operations

Total number of licenses	31.03.2021	31.12.2020
Aker BP as operator	80	79
Aker BP as partner	50	56

Changes in production licenses in which Aker BP is the operator:			Changes in production licenses in which Aker BP is a partner:
License:	31.03.2021	31.12.2020 License:		31.03.2021	31.12.2020
PL 146B2)	77.800%		0.000 % PL 7191)	0.000%	20.000 %
PL 8141)	0.000%	40.000 % PL 8621)		0.000%	50.000 %
PL 8681)	0.000%	60.000 % PL 9021)		0.000%	30.000 %
PL 9071)	0.000%		60.000 % PL 902B1)	0.000%	30.000 %
PL 9771)	0.000%	60.000 % PL 9541)		0.000%	20.000 %
PL 9781)	0.000%	60.000 % PL 9551)		0.000%	30.000 %
PL 10221)	0.000%	40.000 % PL 9821)		0.000%	40.000 %
PL 10301)	0.000%		50.000 % PL 10311)	0.000%	20.000 %
PL 1045B2)	65.000%		0.000 % PL 11222)	20.000%	0.000 %
PL 10852)	60.000%		0.000 % PL 11232)	30.000%	0.000 %
PL 10882)	77.800%	0.000 %
PL 10972)	40.000%	0.000 %
PL 10992)	40.000%	0.000 %
PL 11102)	40.000%	0.000 %
PL 11242)	23.835%	0.000 %
Total	8		7 Total	2	8

1) Relinquished license or Aker BP has withdrawn from the license

2) Interest awarded in the APA Licensing round

Note 20 Results from previous interim reports

	2021
(USD 1 000)	Q1	Q4	Q3	Q2	Q1
Total income	1 133 238	833 508	683 865	589 784	872 105
Production costs	175 906	142 068	133 690	196 174	156 043
Exploration expenses	70 917	41 722	32 267	49 774	50 336
Depreciation	257 554	289 408	268 645	286 353	277 412
Impairments	29 656	55 302	-	-135 872	653 697
Other operating expenses	8 225	27 028	7 309	14 897	223
Total operating expenses	542 258	555 528	441 912	411 326	1 137 711
Operating profit/loss	590 980	277 980	241 954	178 458	-265 606
Net financial items	-89 846	-42 313	-50 678	-27 418	-148 691
Profit/loss before taxes	501 134	235 667	191 276	151 040	-414 298
Tax expense (+)/income (-)	374 104	106 200	110 983	-18 649	-79 564
Net profit/loss	127 029	129 467	80 293	169 689	-334 734

	2021		2020
(boe 1 000)	Q1	Q4	Q3	Q2	Q1
Sold volumes
Liquids Gas	16 468 3 620	16 165 3 507	14 489 2 779	18 036 3 073	15 858 3 026

	2021		2020
(USD 1 000)	Q1	Q4	Q3	Q2	Q1
Assets
Goodwill	1 647 436	1 647 436	1 647 436	1 647 436	1 647 436
Other intangible assets	1 878 702	2 043 233	2 050 887	2 053 548	2 001 150
Property, plant and equipment	7 392 321	7 266 137	7 218 548	7 175 129	7 060 700
Right-of-use asset	126 861	132 735	126 433	137 296	170 834
Receivables and other assets	803 603	792 750	561 657	546 212	524 382
Calculated tax receivables (short)	-	-	71 038	186 630	-
Cash and cash equivalents	392 276	537 801	818 547	142 333	322 789
Total assets	12 241 198	12 420 091	12 494 548	11 888 584	11 727 291
Equity and liabilities
Equity	1 988 993	1 987 281	1 928 638	1 912 084	1 813 229
Other provisions for liabilities incl. P&A (long)	2 665 343	2 650 263	2 649 759	2 655 478	2 699 246
Deferred tax	2 781 602	2 642 461	2 562 528	2 471 221	2 153 376
Bonds and bank debt	3 474 328	3 968 566	4 372 815	3 712 292	3 593 387
Lease debt	200 346	215 760	217 148	236 259	277 356
Other current liabilities incl. P&A	678 456	792 407	763 660	901 251	930 616
Tax payable	452 131	163 352		-	260 081
Total equity and liabilities	12 241 198	12 420 091	12 494 548	11 888 584	11 727 291

Alternative Performance Measures

Aker BP may disclose alternative performance measures as part of its financial reporting as a supplement to the financial statements prepared in accordance with IFRS. Aker BP believes that the alternative performance measures provide useful supplemental information to management, investors, security analysts and other stakeholders and are meant to provide an enhanced insight into the financial development of Aker BP's business operations and to improve comparability between periods.

Abandonment spend (abex) is payment for removal and decommissioning of oil fields1)

Capex is disbursements on investments in fixed assets1)

Depreciation per boe is depreciation divided by number of barrels of oil equivalents produced in the corresponding period

Dividend per share (DPS) is dividend paid in the quarter divided by number of shares outstanding

EBITDA is short for earnings before interest and other financial items, taxes, depreciation and amortisation and impairments

EBITDAX is short for earnings before interest and other financial items, taxes, depreciation and amortisation, impairments and exploration expenses

Equity ratio is total equity divided by total assets

Exploration spend (expex) is exploration expenses plus additions to capitalized exploration wells less dry well expenses1)

Interest coverage ratio is calculated as twelve months rolling EBITDA, divided by interest expenses, excluding any impacts from IFRS 16.

Leverage ratio is calculated as Net interest-bearing debt divided by twelve months rolling EBITDAX, excluding any impacts from IFRS 16

Net interest-bearing debt is book value of current and non-current interest-bearing debt less cash and cash equivalents

Operating profit/loss is short for earnings/loss before interest and other financial items and taxes

Production cost per boe is production cost basd on produced volumes, divided by number of barrels of oil equivalents produced in the corresponding period (see note 3)

1) Includes payments of lease debt as disclosed in note 7.

		Q1	Q4	01.01.-31.03.	Q1	01.01.-31.12.
(USD 1 000)	Note	2021	2020	2021	2020	2020
Abandonment spend
Payment for removal and decommissioning of oil fields		78 576	85 508	78 576	20 929	150 306
Payments of lease debt (abandonment activity)	7	19 778	19 003	19 778	1 521	27 660
Abandonment spend		98 354	104 511	98 354	22 450	177 966
Depreciation per boe
Depreciation	6	257 554	289 408	257 554	277 412	1 121 818
Total produced volumes (boe 1 000)	3	19 999	20 525	19 999	18 938	77 101
Depreciation per boe		12.9	14.1	12.9	14.6	14.6
Dividend per share
Paid dividend		112 500	70 833	112 500	212 500	425 000
Number of shares outstanding		359 840	360 101	359 840	359 984	359 808
Dividend per share		0.31	0.20	0.31	0.59	1.18
Capex
Disbursements on investments in fixed assets (excluding capitalized interest)		216 162	297 219	216 162	329 608	1 238 601
Payments of lease debt (investments in fixed assets)	7	861	1 144	861	30 716	67 125
CAPEX		217 023	298 363	217 023	360 324	1 305 727
EBITDA
Total income	2	1 133 238	833 508	1 133 238	872 105	2 979 263
Production costs	3	-175 906	-142 068	-175 906	-156 043	-627 975
Exploration expenses	4	-70 917	-41 722	-70 917	-50 336	-174 099
Other operating expenses		-8 225	-27 028	-8 225	-223	-49 457
EBITDA		878 190	622 690	878 190	665 503	2 127 731
EBITDAX
Total income	2	1 133 238	833 508	1 133 238	872 105	2 979 263
Production costs	3	-175 906	-142 068	-175 906	-156 043	-627 975
Other operating expenses		-8 225	-27 028	-8 225	-223	-49 457
EBITDAX		949 107	664 412	949 107	715 839	2 301 830
Equity ratio
Total equity		1 988 993	1 987 281	1 988 993	1 813 229	1 987 281
Total assets		12 241 198	12 420 091	12 241 198	11 727 291	12 420 091
Equity ratio		16%	16%	16%	15%	16%
Exploration spend
Disbursements on investments in capitalized exploration expenditures		26 978	43 774	26 978	31 253	127 283
Exploration expenses	4	70 917	41 722	70 917	50 336	174 099
Dry well	4	-12 201	-6 071	-12 201	-28 982	-56 626
Payments of lease debt (exploration expenditures)	7	495	310	495	221	874
Exploration spend		86 190	79 735	86 190	52 829	245 629

		Q1	Q4	01.01.-31.03.	Q1	01.01.-31.12.
(USD 1 000)	Note	2021	2020	2021	2020	2020
Interest coverage ratio
Twelve months rolling EBITDA	20	2 340 418	2 127 731	2 340 418	2 412 844	2 127 731
Twelve months rolling EBITDA, impacts from IFRS 16	7	-22 535	-23 438	-22 535	-20 638	-23 438
Twelve months rolling EBITDA, excluding impacts from IFRS 16		2 317 883	2 104 293	2 317 883	2 392 206	2 104 293
Twelve months rolling interest expenses	8	185 958	184 501	185 958	175 975	184 501
Twelve months rolling amortized loan cost	8	22 149	19 813	22 149	20 065	19 813
Twelve months rolling interest income	8	2 760	3 763	2 760	11 795	3 763
Net interest expenses		205 347	200 552	205 347	184 244	200 552
Interest coverage ratio		11.3	10.5	11.3	13.0	10.5
Leverage ratio
Long-term bonds	14	3 474 328	3 968 566	3 474 328	3 120 062	3 968 566
Other interest-bearing debt	15	-	-	-	280 784	-
Short-term bonds	14	-	-	-	192 541	-
Cash and cash equivalents	11	392 276	537 801	392 276	322 789	537 801
Net interest-bearing debt excluding lease debt		3 082 052	3 430 766	3 082 052	3 270 598	3 430 766
Twelve months rolling EBITDAX	20	2 535 098	2 301 830	2 535 098	2 678 337	2 301 830
Twelve months rolling EBITDAX, impacts from IFRS 16	7	-21 387	-22 564	-21 387	-19 797	-22 564
Twelve months rolling EBITDAX, excluding impacts from IFRS 16		2 513 711	2 279 266	2 513 711	2 658 540	2 279 266
Leverage ratio		1.23	1.51	1.23	1.23	1.51
Net interest-bearing debt
Long-term bonds	14	3 474 328	3 968 566	3 474 328	3 120 062	3 968 566
Long-term lease debt	7	115 299	131 856	115 299	179 501	131 856
Other interest-bearing debt	15	-	-	-	280 784	-
Short-term bonds	14	-	-	-	192 541	-
Short-term lease debt	7	85 047	83 904	85 047	97 855	83 904
Cash and cash equivalents	11	392 276	537 801	392 276	322 789	537 801
Net interest-bearing debt		3 282 398	3 646 526	3 282 398	3 547 954	3 646 526

Operating profit/loss see Income Statement

Production cost per boe see note 3

KPMG AS Sørkedalsveien 6 Postboks 7000 Majorstuen 0306 Oslo

Telephone +47 04063 Fax +47 22 60 96 01 Internet www.kpmg.no Enterprise 935 174 627 MVA

To the Board of Directors of Aker BP ASA

Independent Auditors' Report on Review of Interim Financial Information

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of Aker BP ASA as at 31 March 2021 and the related condensed consolidated income statement, condensed consolidated statement of changes in equity, and the condensed consolidated statement of cash flow for the three-month period ended 31 March 2021, and notes to the condensed consolidated interim financial information (the "condensed consolidated interim financial statements"). Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting as adopted by the EU. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, Interim Financial Reporting as adopted by the EU.

Other matters

Our report does not extend to the summary financial information for interim periods included in Note 20 which is not a required disclosure under International Accounting Standard 34 Interim Financial Reporting as adopted by the EU.

Oslo, 27 April 2021

KPMG AS

Roland Fredriksen State Authorised Public Accountant (Norway)

ALLC:

37 · Aker BP Quarterly Report · Q1 2021

· Aker BP Quarterly Report · Q1 2021

· Aker BP Quarterly Report · Q1 2021

Aker BP ASA

Fornebuporten, Building B Oksenøyveien 10 1366 Lysaker

www.akerbp.com

CONTACT

Postal address: P.O. Box 65 1324 Lysaker, Norway

Telephone: +47 51 35 30 00 E-mail: post@akerbp.com