Aker BP

Earnings Release • Feb 4, 2021

Capital Markets Update 4 February 2021

Disclaimer

This Document includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Document are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Aker BP ASA's lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Aker BP ASA's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Document. Although Aker BP ASA believes that its expectations and the Document are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Document. Aker BP ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker BP ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

CAPITAL MARKETS UPDATE 2021 Strong performance in a challenging year

2020 in review

Handling challenges with Covid-19 pandemic

• Protecting the safety of our people
• Maintaining stable operations

Preserving financial strength by adapting to macro uncertainty

• Non-sanctioned projects put on hold
• Dividend reduction
• Mobilising to deliver profitable growth

Delivering on operational targets

• Safety and emissions
• Production
• Cost and capital spending

CAPITAL MARKETS UPDATE 2021 Aker BP is uniquely positioned for value creation

Pure-play oil and gas company with industry-leading low emissions

Efficient low-cost operations enabled by digitalization

Project execution through world-class alliances

Strong production growth by investing in high-return barrels

Robust free cash flow and attractive returns in supportive fiscal regime

PURE-PLAY OIL AND GAS COMPANY WITH INDUSTRY-LEADING LOW EMISSIONS

The global energy transition

Affordable, reliable and sustainable energy for all

AKER BP'S ROLE IN THE GLOBAL ENERGY TRANSITION Oil and gas – essential to the energy transition

A significant share of the energy mix for decades

AKER BP'S ROLE IN THE GLOBAL ENERGY TRANSITION Our contribution as a pure-play oil & gas company

Maximise value

Produce efficiently to return high value from oil & gas resources to our stakeholders

Reduce emissions from our operations focusing on the total footprint

Contribute with data, know-how and technology to other industries

EFFICIENT LOW-COST OPERATIONS ENABLED BY DIGITALIZATION

Skarv area Operator, ~24%

EFFICIENT LOW-COST OPERATIONS The future of E&P belongs to the most efficient producers

Lower emission intensity CO2 - kg/boe

Lower cost Aker BP ambition - Production cost USD/boe1

EFFICIENT LOW-COST OPERATIONS HSSE is always the number one priority in Aker BP

Achievements 2020

• Robust COVID response with no incidents on operated installations
• Positive safety trend in 2020
• Zero process safety events tier 1 and tier 2 last two years

Recordable injuries (TRIF)

EFFICIENT LOW-COST OPERATIONS Building new operating model by using our improvement toolbox

Standardization as driver for cost efficiency and safety, improved collaboration and accelerated improvements

EFFICIENT LOW-COST OPERATIONS Remote first!

• Digital infrastructure with real-time data access

• Incentivising suppliers to take part in the transformation and further develop remote capabilities

• Offshore operators equipped with handheld devices for easy access to data and communication

• Onshore collaboration centres to remotely support offshore activities

EFFICIENT LOW-COST OPERATIONS 2020 CO2 emission reductions in practice

Systematic approach to energy efficiency 2020 example from Skarv:

• Aker BP has established a structured process to map energy use and identify energy improvement opportunities (EIO)
• The EIOs are ranked according to environmental, technical and economic effects, and the best projects are selected for implementation
• In 2020, six projects were carried out with total emissions reductions of ~15 000 tonnes of CO2

Reduced plant pressure loss in gas export by new larger bypass JT valve and various adjustments

Effects:

• Lower annual CO2 emissions 4 800 tonnes
• Reduced power requirements

PROJECT EXECUTION THROUGH WORLD-CLASS ALLIANCES

Alliances – the cornerstone of our execution model PROJECT EXECUTION THROUGH WORLD-CLASS ALLIANCES

Hod – prime example of alliance project PROJECT EXECUTION THROUGH WORLD-CLASS ALLIANCES

Five alliances involved

Copy of the Valhall Flank West development

Same team, same job, same blueprints

Efficiency gains and cost reductions

STRONG PRODUCTION GROWTH BY INVESTING IN HIGH-RETURN BARRELS

Tax changes support activity and value creation

• Stimulate investment activity through the cycle by improving liquidity and accelerating cash flow
• Contribute to maintain competence and jobs in the Norwegian oil and gas industry
• Lead to increased value creation for all stakeholders

STRONG PRODUCTION GROWTH BY INVESTING IN HIGH-RETURN BARRELS Strong growth potential from large resource base

2P oil and gas reserves in production and under development

2C contingent resources

oil and gas discoveries

STRONG PRODUCTION GROWTH BY INVESTING IN HIGH-RETURN BARRELS Targeting highly profitable barrels next two years

	Project	Area	Net mmboe	FID	First oil
g n oi g n O	Johan Sverdrup phase 2	Johan Sverdrup	71	2015	2022
	Ærfugl phase 2	Skarv	18	2018	2022
	Gråsel	Skarv	3	2020	2021
	Hod	Valhall	36	2020	2022
	Sum		~125
2 2 0 2 d- n e y b d e n n a pl D FI	Valhall infill drilling	Valhall	10	2020	2021
	Frosk	Alvheim	10	2021	2023
	Kobra East/Gekko	Alvheim	30	2021	2024
	Trell & Trine	Alvheim	10	2022	2025
	Hanz	Ivar Aasen	5	2022	2024
	Skarv satellites	Skarv	70	2022	2025
	Valhall NCP	Valhall	70	2022	2025
	NOAKA	NOAKA	325	2022	2027
	Garantiana	Other	20	2022	2025
	Sum		~550

new projects

average break-even in project portfolio

USD 8/bbl

lower break-even than a year ago

OPERATED FIELDS Alvheim area

Production outlook1, net mboepd

²³ 1) Included in production prognosis – Sanctioned: Skogul Non-sanctioned: Frosk, Froskelår, Trine & Trell, Kobra East/Gekko, Boa sidetrack, Kneler NE, Kameleon infill wells. PDO: Plan for Development and Operation

1) Included in production prognosis – Sanctioned: Ærfugl, Non-sanctioned: Alve North, Gråsel, Idun North, Shrek, Ørn 24

Production outlook1, net mboepd

²⁵ 1) Included in production prognosis – Sanctioned: Valhall Flank West Non-sanctioned: Hod, Valhall Diatomite, Valhall Tor, Valhall FW and other infill wells

OPERATED FIELDS Ivar Aasen

Production outlook1, net mboepd

Production outlook1, net mboepd

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1) Non-sanctioned consists of Ula infill wells 27

1) Based on current resource estimates for each of the discoveries multiplied by company interest in the respective licences.

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Johan Sverdrup - a world class oil field JOHAN SVERDRUP

PHASE 1 PLATEAU

~535 000

bbl per day

2020 CO2 EMISSIONS

per boe

BREAK-EVEN FULL FIELD

per bbl

PRODUCTION COST PHASE 1

< \$2 per boe

Aker BP interest 11.5733% in Johan Sverdrup. Operated by Equinor. Field-life CO2 emissions of around 0.7 kg per boe 30

Picture: Equinor

JOHAN SVERDRUP Phase 2 to increase capacity to 720,000 bbl/day in 2022

• New processing platform
• 28 wells and 5 subsea templates
• Capex NOK 41 billion
• Increasing processing capacity to 720,000 bbl/day

Strong production growth by investing in high-return barrels PRODUCTION AMBITION

~70% higher production in 2028 than in 2020, mboepd

The Aker BP exploration formula EXPLORATION

Maximize value of existing infrastructure 80 %

Explore for new hub potential 20 %

Smart integration of data and technology

EXPLORATION 2021 exploration programme

Licence	Prospect		Operator	Aker BP share	Pre-drill mmboe	Status
PL 533	Bask		Lundin	35 %	14 - 585	Dry
PL 981	Merckx Ty	1	Lundin	40 %	43 - 304
PL 544	Garantiana W	2	Equinor	30 %	7 - 28
PL 858	Stangnestind	3	Aker BP	40 %	13 - 108
PL 722	Shenzhou	4	Equinor	20 %	191 - 505
PL 006C	Gomez	5	DNO	15 %	17 - 57
PL 1041	Lyderhorn	6	Aker BP	40 %	6 - 14
PL 167	Lille Prinsen	7	Equinor	10 %	Appraisal
PL 442	Liatårnet	8	Aker BP	90 %	Appraisal

2

MERGERS & ACQUISITIONS Disciplined approach to M&A

Logos represents acquisitions, mergers and asset transactions by Aker BP in Norway in the respective year. (M&A: mergers & acquisitions) 35

ROBUST FREE CASH FLOW AND ATTRACTIVE RETURNS IN SUPPORTIVE FISCAL REGIME

Key figures		2020	2019
Production	mboepd	210.7	155.9
Sales	mboepd	210.2	157.6
Realized liquids price	USD/bbl	40.0	64.8
Realized gas price	USD/scm	0.14	0.18
Total income	USDm	2979	3 3 4 7
EBITDA	USDm	2 1 2 8	2 2 8 6
	USDm	45	141
Net profit	USDm	356	$-293$
Free cash flow 1	USDm	3647	3 180
Net interest-bearing debt		1.51	1.24
Leverage rato

2020 PERFORMANCE Oil and gas production, sales and revenues

2020 PERFORMANCE Lifted volumes and realised prices

Crude oil liftings 20201) mmbbl

Breakdown of realised liquids prices in 2020 USD/bbl

2020 PERFORMANCE Production cost trending down

Production cost (USD/boe)

2020 cost guiding development

Significant reduction in cost/boe from 2019 driven by increased production and reduced underlying cost

2020 cost in USD impacted by currency movements

• Guiding reduced in March due to activity reduction and weaker NOK
• 2020 cost down by 1 USD/boe compared to original guiding when adjusting for currency effects

1) Estimated production cost 2020 at alternative FX rates for 2020 of USDNOK 10 (low) and USDNOK 8,5 (high) respectively 2) The full-year USDNOK rates are realized figures, while Feb, March and Oct refer to assumed USDNOK rate for full year 2020 at the time of guiding 41

2020 PERFORMANCE Free cash flow generation above USD 350 million

Cash flow development, USD million

2020 PERFORMANCE Performance vs. guidance

FINANCIAL STRATEGY Capital allocation priorities to maximize value creation

Superior financial flexibility further improved MAINTAIN SUFFICIENT FINANCIAL CAPACITY

Net debt and leverage ratio USD billion (bars), Net debt/EBITDAX1 (line)

Debt maturity profile USD billion

1) Leverage ratio: Net interest-bearing debt divided by EBITDAX last 12 months, excluding effects of IFRS16 Leasing

2) Available liquidity: Undrawn bank facilities and Cash and cash equivalents. (RCF: Revolving Credit Facility) 45

Effective capital market activity in turbulent times MAINTAIN SUFFICIENT FINANCIAL CAPACITY

MAINTAIN SUFFICIENT FINANCIAL CAPACITY Prudent risk management

Business risks

Risk management policies

Credit rating

• Committed to maintain investment grade profile
• Liquidity
• Liquidity buffer of minimum USD 2 billion

Hedging

• Using options and forwards to manage forex exposure
• Put options to manage short-term oil price risk (1-2 years)

Insurance

• All assets insured in commercial market
• Loss of production covered after 45 days at net USD 50/bbl

Investment criteria

• Full-cycle NPV1) break-even at or below USD 30/bbl
• Climate risk integrated in investment decisions

INVEST IN PROFITABLE GROWTH Prioritizing highly profitable investments from resource hopper

Accumulated volume (Mmboe)

INVEST IN PROFITABLE GROWTH Economics substantially improved in temporary fiscal regime

Break-even for projects targeted for FID by 2022 Preliminary figures, USD/boe2

Accelerated tax deductions for investments on NCS Tax deduction in percent of invested amount on tax bill for fiscal year

1) Projects included: Frosk, Garantiana, Hanz, Kobra East Gekko, NOAKA, Skarv satellites, Trell & Trine, Valhall infill drilling, Valhall NCP. 2) Break-even defined as the oil price necessary to achieve positive NPV using 10% discount rate 49

INVEST IN PROFITABLE GROWTH Summary of Norwegian tax changes

over 6 years

over 4 years

Corporate tax (22%) Capex depreciated

Special tax (56%) Capex depreciated

Uplift on capex 20.8%

Ordinary tax system Temporary tax system

over 6 years No change

Immediate depreciation

24% in year 1

Time limit N/A All capex 2020-21 PDOs by end-2022 2)

Tax losses Carried forward 1) Cash refund in 2020 and 2021

Expected tax payments INVEST IN PROFITABLE GROWTH

USD million

1) Estimated current tax on income for fiscal year 2021 for Aker BP at various oil price scenarios, assuming USDNOK 8.5. Excluding potential payments related to uncertain tax cases.

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INVEST IN PROFITABLE GROWTH Attractive investment program driven by FIDs in 2021/22

Capex outlook, USD billion

52

INVEST IN PROFITABLE GROWTH Post-tax capex outflow significantly reduced

Illustrative pre-tax and post-tax capex outlook, USD billion

• Temporary fiscal regime accelerates tax deductions for capital investments
• Capital required to fund growth capex reduced by 50-60% compared to ordinary tax regime
• Significantly improved near-term cash flow balanced by higher tax after the investment period

INVEST IN PROFITABLE GROWTH Economics of a typical project with below USD 30/bbl break-even

Illustrative project on the Norwegian Continental Shelf, USD million

Illustrative oil field of 25 mmboe, two producer wells, one water injector, plateau production of 15 mboepd, average decline of ~20% per year. Total CAPEX of 500 USDm and OPEX of 7 USD/bbl. Consolidated tax position, assuming temporary tax regime. Assuming USDNOK of 8.5. 54

INVEST IN PROFITABLE GROWTH Carbon pricing consistent with meeting climate goals

Climate risk embedded in all investment decisions, USD per tonne CO2

• All investments tested against a cost of carbon significantly higher than the IEA's Sustainable Development Scenario
• Carbon price assumptions (2021 real):
• USD ~ 110/tonne CO2 in 2021
• USD ~ 150/tonne CO2 in 2025
• USD ~ 240/tonne CO2 in 2030
• Carbon price assumptions increased in line with new targets from Norwegian government

INVEST IN PROFITABLE GROWTH Strong production growth by investing in high-return barrels

Production outlook, mboepd

• Plan to increase production by more than 70% towards 2028
• Assumed start-up Sverdrup phase 2 late-2022 and NOAKA mid-2027
• Break-even below USD 30/bbl on current project portfolio
• Limited capital requirements due to temporary tax changes

INVEST IN PROFITABLE GROWTH Ambition to drive down production cost further

Production cost outlook, USD/boe

• Underlying cost continues to trend down in 2021, offset by stronger NOK
• Key drivers are operating model improvements and new production
• Cost of emissions set to increase in line with government targets
• Target of reaching USD 7/bbl sustained

Exploration provides upside to current plan INVEST IN PROFITABLE GROWTH

Exploration spend outlook, USD million

• 2020 program reduced
• 4 wells completed and 6 moved
• Discovered net 10-30 mmboe
• 2021 plan includes 9 wells
• Near-field and appraisal wells
• Finishing the Barents campaign
• NOAKA categorized as field evaluation until final concept is selected
• Expex is fully deductible same year as incurred at 78% tax rate

INVEST IN PROFITABLE GROWTH Strong performance driving down decommissioning cost

Abandonment spend outlook, USD million

RETURN VALUE CREATION Robust free cash flow generation

Annual free cash flow outlook, USD million1

1) Free cash flow: Net cash flow from operating activities minus Net cash flow used in investment activities All oil price levels refer to Brent Blend USD 2021 real. Assuming USDNOK 9.5 @ USD 40/bbl, USDNOK 8.5 @ USD 50/bbl and USDNOK 8.0 @ USD 65/bbl 60

Dividend policy supports goal of maximizing value creation RETURN VALUE CREATION

Integrated part of capital allocation framework Dividends, USD million

• Dividends reflect distribution capacity through the cycle, considering long-term financial outlook and credit profile
• Ambition of minimum 5% annual increase in dividends from 2022 at oil price above USD 40/bbl
• Cash dividends main mechanism for distribution
• Proposed dividend to be paid in 2021 of USD 450 million (USD 1.25 per share) in four installments

RETURN VALUE CREATION Clear priorities - attractive returns - capacity to grow

Dividend considerations across oil price scenarios Aker BP investment plan 2021-2028

<40 USD/bbl Reassess investment plan and distribution level to sustain financial robustness

USD billion, accumulated

1) USD 450 million used in annual dividends for illustrative purposes

2) All oil price levels refer to Brent Blend USD 2021 real. Assuming USDNOK of 8.5 in 2021 and onwards 62

COMBINING THE FULL CAPITAL ALLOCATION PLAN Plan set for deleveraging while growing cash flow and returns

Leverage ratio - an approximation incl. all investments and annual dividend increase of 5% from 2022 2.5

Leverage ratio: Net debt/EBITDAX. Effect of oil put options are not included. Assumed no change in investment behavior or impact on supplier costs from changes in oil price. All oil price levels refer to Brent Blend USD 2021 real. Assuming USDNOK 9.5 @ USD 40/bbl, USDNOK 8.5 @ USD 50/bbl and USDNOK 8.0 @ USD 65/bbl. Dividend in 2021 of USD 450m and 5% annual increase assumed thereafter (for illustration).

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CAPITAL MARKETS UPDATE 2021 Our priorities

Safe and efficient operations with flawless project execution through our alliances

EXECUTE IMPROVE GROW

New operating model for increased efficiency and reduced emissions

Mature NOAKA and other prioritized projects for FID by end of 2022 and significantly lift production towards 2028

CAPITAL MARKETS UPDATE 2021 Aker BP is uniquely positioned for value creation

Pure-play oil and gas company with industry-leading low emissions

Efficient low-cost operations enabled by digitalization

Project execution through world-class alliances

Strong production growth by investing in high-return barrels

Robust free cash flow and attractive returns in supportive fiscal regime