Quarterly report Q4 2024

Fourth quarter 2024

Highlights and key figures 1

All figures in brackets refer to previous quarter

Cash from operations Capital expenditure Leverage ratio NOK million NOK million Net debt / EBITDA

(1,418) (646) (0.18)

Production Operating income EBITDA kboepd NOK million NOK million

37.8 2,262 1,645

(37.3) (2,926) (1,975)

857 767 0.12

¹ Yme volumes in Q4 2024 is calculated as production volumes for October and November divided by 92 days

• Operational performance

Continued strong production performance with 37.8 (37.3) kboepd produced
Production optimisation initiatives at Draugen resulting in a significant ramp up of gas export; 1.3 kboped increased gas export - more than double the anticipated contribution
No recordable injuries
Three exploration wells spud in the quarter; Arkenstone (temporarily paused), Mistral and Prince

Financial performance

Petroleum revenues of NOK 2,183 (2,944) million
EBITDA of NOK 1,645 (1,975) million
Net profit after tax of NOK 68 (277) million
Positive net cash position of NOK 735 (1,282) million

Portfolio development

Awarded eight new licences in APA 2024, of which two as operator
Swap of a 10% working interest (WI) in PL1119 containing the Mistral prospect, for a 10% WI in PL1109 containing the Horatio prospect
Development projects:
- Bestla progressing according to plan
- Installation of power cable to Draugen completed in December in accordance with plan
Sale of non-core Yme asset for a total consideration of USD 15.65 million completed on 29 November

Message from the CEO

I am pleased to report continued strong operational performance which brings the full year production just above our guidance for 2024 and capex slightly below guidance. I am also pleased to report a significant reduction in the total recordable injury frequency without any recordable injuries in the quarter

We continue to optimise our asset portfolio, including completion of the sale of the 15% WI in Yme at favourable terms, as well as a licence swap of 10% WI in Mistral for a 10% WI in Horatio, which diversifies our ongoing exploration drilling activities. In addition, OKEA was awarded eight new licences in the APA 2024 in January which further enhances the potential in our portfolio.

The Bestla project is progressing well with detailed engineering and procurement activities ongoing. Installation of the power cable for the Draugen electrification project was completed in accordance with plan in December.

Overall, I am proud of our accomplishments, particularly on our operated assets, and we will continue the work to combine strong operational deliveries with disciplined investments for the purpose of maximising value creation for our stakeholders.

Svein J. Liknes Chief Executive Officer

Financial review

Statement of comprehensive income

Amounts in NOK million	Q4 2024	Q3 2024	Q4 2023	2024	2023
Total operating income	2,262	2,926	2,118	11,246	8,885
Total operating expenses	-1,298	-787	-2,913	-6,283	-7,568
Profit/loss (-) before income tax	702	2,167	-873	4,562	1,099
Net profit / loss (-)	68	277	-1,263	383	-935
EBITDA 2	1,645	1,975	1,661	7,396	5,756
EBITDAX	1,791	2,017	1,683	7,844	5,959

Total operating income of NOK 2,262 (2,926) million comprise:

Petroleum revenues of NOK 2,183 (2,944) million. The decrease was mainly due to an underlift in the quarter with reduced sold volumes from 40,789 boepd to 29,204 boepd. The realised crude price averaged USD 76.7 (79.9). 18% (12%) of the volumes sold was NGLs which are trading at a discount to crude with an average price of USD 48.6 (46.8) per boe. The average realised liquids price amounted to USD 69.2 (74.9) per boe. The average realised natural gas price amounted to USD 80.0 (68.9) per boe, of which a loss of USD 0.2 (gain of 10.4) per boe was attributable to hedging.
Other operating income of NOK 79 (-18) million. The increase was mainly due to net tariff income at Gjøa and Statfjord of NOK 48 (-16) million and a gain from sale of the Yme asset amounting to NOK 49 (0) million.

Total operating expenses of NOK 1,298 (787) million comprises:

Production expenses of NOK 805 (790) million, corresponding to NOK 217 (233) per boe.
Changes in over-/underlift positions and production inventory resulted in an income of NOK 364 (expense of 86) million as produced volumes exceeded sold volumes.
Depreciation of NOK 680 (707) million mainly comprising unit of production depreciation of oil and gas properties of NOK 668 (695) million.
No impairments in the quarter (net reversal of previous impairment of NOK 871 million).
Exploration and evaluation expenses of NOK 146 (42) million. The increase was mainly due to purchase of seismic of NOK 112 (19) million.
General and administrative expenses of NOK 31 (33) million.

Net profit/ loss (-) of NOK 68 (277) million comprises:

Profit from operating activities of NOK 964 (2,138) million.
Net financial expense of NOK 262 (income of 28) million, of which NOK 225 ( gain of 86) million relate to net foreign exchange loss, and NOK 35 (41) million relate to net expensed interest.
Tax expenses of NOK 634 (1,889) million resulted in an effective tax rate of 90% (87%). The effective tax rate exceeded the marginal tax rate of 78% due to net financial expenses only being subject to the onshore tax rate (22%).

Net profit for the quarter was NOK 68 (277) million and total comprehensive income was NOK 70 (277) million. Profit per share amounted to NOK 0.65 (2.67)

² Definitions of alternative performance measures are available on page 48 of this report

Statement of financial position

Amounts in NOK million	31.12.2024	30.09.2024	31.12.2023
Goodwill	1,613	1,613	2,295
Oil and gas properties	6,778	6,795	7,199
Other non-current assets	4,813	4,522	4,546
Cash and cash equivalents	3,279	3,614	2,301
Other current assets	3,304	2,740	2,158
Assets classified as held for sale	0	1,938	0
TOTAL ASSETS	19,787	21,223	18,500

Equity	1,111	1,041	726
Interest bearing bond loans	2,798	2,583	1,246
Other long-term liabilities	10,859	10,599	11,088
Income tax payable	1,628	1,929	2,141
Other current liabilities	3,391	2,955	3,299
Liabilities directly associated with assets classified as held for sale	0	2,115	0
TOTAL EQUITY AND LIABILITIES	19,787	21,223	18,500

Goodwill of NOK 1,613 (1,613) million comprises NOK 1,450 (1,450) million in technical goodwill and NOK 163 (163) million in ordinary goodwill. Reference is made to note 11 for further information.

Oil and gas properties amounted to NOK 6,778 (6,795) million. Depreciation was offset by additions relating to the Power from Shore project on Draugen, the Bestla project, and production drilling at Brage and Statfjord.

Other non-current assets of NOK 4,813 (4,522) million mainly comprise asset retirement reimbursement rights of NOK 4,421 (4,260) million relating to Equinor's, Shell's and Harbour Energy's obligations to cover part of decommissioning costs for Statfjord, Draugen and Gjøa, and Brage respectively.

Cash and cash equivalents amounted to NOK 3,279 (3,614) million.

Other current assets of NOK 3,304 (2,740) million mainly comprise trade and other receivables of NOK 2,074 (1,821) million, spare parts, equipment and inventory of NOK 777 (660) million and a placement of excess liquidity in money-market funds of NOK 254 (251) million.

Interest bearing bond loans of NOK 2,798 (2,583) million comprise the OKEA04 and OKEA05 bonds. The increase was due to a weakening of NOK against USD during the quarter.

Other long-term liabilities of NOK 10,859 (10,599) million mainly comprise asset retirement obligations of NOK 9,292 (9,256) million. The asset retirement obligations are partly offset by the asset retirement reimbursement rights outlined above.

Income tax payable amounted to NOK 1,628 (1,929) million.

Other current liabilities of NOK 3,391 (2,955) million mainly comprise trade and other payables of NOK 3,029 (2,824) million.

Asset classified as held for sale of NOK 0 (1,938) million and liabilities directly associates with assets classified as held for sale of NOK 0 (2,115) million related to the sale transaction of the Yme asset which was closed in November. Reference is made to note 28 for further details.

Statement of cash flows

Amounts in NOK million	Q4 2024	Q3 2024	Q4 2023	2024	2023
Net cash flow from operations	857	1,418	1,720	4,253	5,188
Net cash flow used in investments	-1,118	-910	-1,450	-4,373	-3,206
Net cash flow used in financing activities	-90	-94	-136	1,008	-649

Net cash flows from operating activities of NOK 857 (1,418) million account for taxes paid of NOK 674 (349) million mainly related to two (one) tax instalments paid for 2024. The lower cash flows from operating activities were mainly due to lower volumes sold due to underlift and higher taxes paid.

Net cash flows from investment activities of NOK -1,118 (-910) million mainly related to investments in oil and gas properties of NOK 767 (646) million and capitalised expenditure relating to exploration wells of NOK 138 (2) million. Net cash flows used in investment activities in the previous quarter included NOK 250 million in excess liquidity placed in money-market funds.

Net cash flows from financing activities of NOK -90 (-94) million mainly related to interests paid of NOK 69 (72) million.

Financial risk management

OKEA addresses financial risk by use of derivatives and fixed price contracts to manage exposures to fluctuations in commodity prices and foreign exchange rates.

Financial hedging arrangements on foreign exchange exposure, CO2 quotas and oil and gas options are recognised at market value on each balance sheet date.

Hedging positions on crude oil and gas production as per the date of this report:

Crude oil	Q1 2025	Q2 2025
Price [USD/bbl] (floors/ceilings)	72 / 85	72 / 85
Hedged share (net a/tax)	15%	16%

Gas	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026
Physical deliveries at average fixed price [p/th]	101	92	92	N/A	N/A
Financial hedge - price [p/th] (floors/ceilings)	80 / 182	70 / 170	70 / 170	80 / 192	80 / 192
Combined hedged share (net a/tax)	29%	49%	46%	13%	14%

Operational review

Operational summary

The strong production performance continued in the fourth quarter of 2024. Production at Draugen increased by 38% mainly due to production optimisation initiatives resulting in increased gas export. Production at Brage, Gjøa area, and Ivar Aasen were stable throughout the quarter with high production efficiencies. Production at Statfjord was lower than previous quarter due to a ten day unplanned shutdown at platform C and challenges related to delivery of new wells.

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Total net production 3	Boepd	37,765	37,261	30,082	38,865	24,586
3rd party volumes available for sale 4	Boepd	-200	-25	292	-67	567
Change in O/U lift	Boepd	-8,361	3,553	-4,739	-1,344	3,071
Total net sold volume	Boepd	29,204	40,789	25,635	37,454	28,224

Production expense per boe5	NOK	217	233	206	219	215
Realised crude oil price	USD/boe	76.7	79.9	87.9	82.5	83.0
Realised NGL price	USD/boe	48.6	46.8	49.0	46.0	46.2
Realised liquids price	USD/boe	69.2	74.9	83.4	77.2	80.1
Realised gas price	USD/boe	80.0	68.9	74.6	67.4	82.2

Production efficiency is calculated as actual production of main product divided by the total of actual production of main product, scheduled deferment and unscheduled deferment. Deferment is the reduction in production caused by a reduction in available production capacity.

³ Yme volumes in Q4 2024 is production volumes for October and November divided by 92 days

⁴ Net compensation volumes from Duva and Nova received and sold (tie-in to Gjøa)

⁵ Definitions of alternative performance measures are available on page 50 of this report

Producing assets

Draugen (operator, 44.56%)

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Production	Boepd	10,085	7,330	8,726	9,377	6,487
Change in O/U lift	Boepd	-6,655	1,288	-205	-2,191	2,493
Total net sold volume	Boepd	3,429	8,618	8,521	7,185	8,980

Production efficiency	%	93%	86%	93%	90%	83%

Production optimisation initiatives resulting in a significant ramp-up of gas export; 1.3 kboped increase from early October and more than double the anticipated contribution. Gas production in previous quarter was impacted by a maintenance shutdown at the Kårstø gas processing plant.

The subsea well D2 was shut in mid-December due to scaling. A well intervention campaign is planned for the first quarter of 2025.

Brage (operator, 35.2%)

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Production	Boepd	6,269	6,250	8,036	6,694	4,856
Change in O/U lift	Boepd	-4,030	2,028	-2,732	618	79
Total net sold volume	Boepd	2,239	8,278	5,304	7,312	4,935

Production efficiency	%	94%	97%	90%	94%	93%

Production volumes were in line with previous quarter as the successful start-up of the Fensfjord North infill well in November, and increased production following a well intervention in December to offset natural decline.

Drilling of exploration and appraisal wells in the Prince prospect and a producer in the Sognefjord East area commenced in November and will continue into the first quarter of 2025.

Statfjord area (partner, 28%)

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Production6	Boepd	11,144	12,668	N/A	11,477	N/A
Change in O/U lift	Boepd	1,799	574	N/A	710	N/A
Total net sold volume	Boepd	12,943	13,242	N/A	12,187	N/A

Production efficiency	%	91%	93%	N/A	90%	N/A

Gjøa & Nova (partner, 12% & 6%)

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Production	Boepd	6,158	5,786	7,007	6,136	7,424
Change in O/U lift	Boepd	2,597	-1,424	576	-422	413
Total net sold volume	Boepd	8,755	4,362	7,583	5,714	7,837

Production efficiency	%	99%	88%	93%	93%	95%

Production volumes were somewhat lower compared to previous quarter due to an unplanned shutdown at platform C lasting 10 days and disappointing delivery of new wells.

Collaboration with operator Equinor to improve production efficiency and drilling performance continues. The drilling plan has been delayed as redrills are required.

As previously reported, OKEA has initiated legal actions against Equinor Energy AS as a time-barring action in accordance with the SPA regulations. The case is progressing, however there are currently no material developments in the case to report.

The increase in production volumes compared to previous quarter was due to restart of the water injection system at Nova and a very high production efficiency.

The water injection system at Nova has functioned well since the restart in the third quarter. The underlying integrity issues and reservoir complexity are still causing some limitations on current and long-term production, and mitigating initiatives are continuously being assessed.

Transocean Norge started drilling a fourth water injector well at Nova in early December. The well will commence injection in the first quarter of 2025, which is expected to increase production performance further. Several tie-in candidates are approaching Gjøa as potential host.

⁶ In 2023, activities from the 28% WI in Statfjord area acquired from Equinor were not included in the statement of comprehensive income and key figures prior to closing on 29 December 2023. OKEA's share of volumes from Statfjord area from effective date on 1 January 2023, was 10,799 boepd for the year.

Yme (partner, 15%)

	Unit	Q4 2024	Q3 2024	Q4 2024	2024	2023
Production	Boepd	1,878	3,140	3,439	2,891	2,809
Change in O/U lift	Boepd	-680	3	-15	-146	133
Total net sold volume	Boepd	1,198	3,143	3,424	2,745	2,942

Production efficiency	%	86%	77%	75%	81%	73%

Ivar Aasen (partner, 9.2385%)

	Unit	Q4 2024	Q3 2024	Q4 2023	2024	2023
Production	Boepd	2,231	2,086	2,874	2,290	3,009
Change in O/U lift	Boepd	-1,592	1,059	-2,071	20	521
Total net sold volume	Boepd	639	3,145	803	2,310	3,530

Production efficiency	%	95%	80%	98%	94%	92%

Production volumes from Yme include October and November divided by 92 days in the fourth quarter as the Yme divestment was completed at the end of November.

The 15% working interest in the Yme licence was subsequently transferred to Lime Petroleum AS for a post-tax cash consideration of USD 15.65 million. Effective date of the transaction was 1 January 2024.

Ivar Aasen delivered stable production and high production efficiency in the quarter.

Optimisation of water injection have resulted in an increased oil production from several wells.

Maturation of the IOR 2026 campaign is ongoing.

Development projects

Draugen – Power from Shore (operator, 44.56%)

The Power from Shore development project is progressing well. Installation of the power cable from shore to Draugen was completed in December in accordance with plan.

Preparatory work at Draugen is ongoing with start of equipment installation planned for mid-2025.

The project will result in average annual reduction of CO2 emissions of 200,000 tonnes from Draugen and 130,000 tonnes from Njord as well as average annual reductions of NOX emissions of 1,250 tonnes from Draugen and 520 tonnes from Njord. In addition, the project will result in reduced production expenses and extend the economic lifetime of the Draugen field.

Completion of the project is expected in 2028.

Bestla (operator, 39.2788%)

The Bestla project is progressing according to plan. All major contracts have been placed and offshore construction activities at the host platform (Brage) commenced in January 2025.

The Bestla field will be developed as a two-well tie-back to the Brage field and contains estimated gross recoverable reserves of 24 million boe. Plateau production is expected within the first year of production by about 10 kboepd net to OKEA.

The plan for development and operation (PDO) for Bestla was approved by the Ministry of Energy in November, and first production is expected in the first half of 2027.

Exploration licences

In January 2025, OKEA was awarded eight new production licences on the Norwegian continental shelf in the APA 2024 licencing round. All awarded licences are located near assets in OKEA's portfolio and OKEA is operator for two of the licences.

A key focus for OKEA's exploration initiatives is building a portfolio of prospects in the Norwegian Sea and North Sea basins with a target to drill up to four exploration wells per year. In the fourth quarter, three exploration wells were spud:

The PL1014 Arkenstone well (20% WI) is a high-risk/high-reward frontier well located in the Northern Norwegian Sea, 132 km north west of Brønnøysund. Arkenstone is operated by Equinor and was spud in December from the semi-submersible rig Deepsea Atlantic. Two pilot wells were drilled to assess the presence of shallow gas above the reservoir. Shallow gas was encountered in the upper layers of the formation, and the drilling operation was temporary suspended. Both pilot wells have been securely plugged with cement, and the partners in the licence will focus on well engineering to ensure that further drilling is safe. OKEA, together with the operator, is working to put the well design into place to return to Arkenstone and complete the well in 2025.
The PL1119 Mistral legacy well (30% WI pre-swap transaction) is located in the south of the Norwegian sea, between Draugen and the Aasgard area. Mistral is operated by Equinor. The well was spud in December and completion is expected in the first quarter of 2025.
Drilling of exploration and appraisal wells from the Brage platform in the Prince prospect and a producer in the Sognefjord East area is ongoing. OKEA is operator and holds a 35.2% WI. Completion of Prince prospect is expected in the first quarter of 2025, and completion of the producer in the Sognefjord East area is expected in the second quarter of 2025.

In December, OKEA entered into an agreement with DNO Norge AS to swap a 10% WI in PL1119 containing the Mistral prospect, for a 10% WI in PL 1109 containing the Horatio prospect. Horatio, located approximately 20 km north-west of the Gjøa platform, is operated by OMV Norge (30% WI), and is scheduled for drilling in the first quarter of 2025. Effective date of the transaction is 1 January 2025. Following the transaction, OKEA will hold a 20% WI in the Mistral prospect and a 10% WI in the Horatio prospect.

QHSSE and ESG

Preventing harm to people's health and the environment is a key priority, and work to ensure safe working conditions is a continuous focus.

No actual serious incidents have been recorded in 2024, but two high potential incidents in Q4 2024 resulted in an increase in the SIF compared to previous quarter. The TRIF rate was reduced in the quarter with no recordable incidents. There were no serious acute spills or hydrocarbon leakages from OKEA-operated assets during the quarter. The GHG emissions intensity was stable at 25 kg CO2e per boe produced.

Key QHSSE indicators	Unit	Q4 2024 Q3 2024		2024	2023

Total recordable injury frequency 12 M rolling	Per mill. workhours
avg		1.1	4.1	1.1	9.0
Serious incident frequency 12 M rolling avg	Per mill. workhours	1.1	0.6	1.1	2.4
Serious acute spills to to sea (A-B)	Count	0	0	0	0
Hydrocarbon leakages (>0.1 kg/s)	Count	0	0	0	0
Equity share GHG emissions intensity	Kg CO2 / boe	25	25	25	20
Share of female recruitment 12 M yearly	Percent	30	31	30	26
target Share of locally committed spend	Percent	94	96	97	99

Subsequent events Guidance Outlook

Awards in Pre-defined Areas (APA) for 2024

On 14 January 2025, OKEA was awarded working interest in eight new production licences through APA 2024. PL 1266 and PL 1252 were awarded with OKEA as operator and are located close to the Draugen field in the Norwegian Sea, and close to the Brage field in the North Sea.

Production

Production for 2024 ended at 39.1⁷ kboepd, slightly above the latest production guidance of 37 - 39 kboepd. Production excluding Yme ended at 36.0 kboepd.

Production guidance for 2025 of 28 32 kboepd
Production guidance for 2026 of 26 30 kboepd

Capex

Capex in 2024 ended at NOK 3.1 billion, slightly below the guidance of NOK 3.2 - 3.5 billion. Capex excluding Yme ended at NOK 3.0 billion.

Capex guidance for 2025 of NOK 3.3 3.7 billion
Capex guidance for 2026 of NOK 3.2 3.8 billion

Capex guidance does not include capitalised interest and exploration spending.

Other

Tax: Three instalments relating to 2024 are payable in H1 2025, each amounting to NOK 550 million.

Presentation currency: From Q1 2025 reporting and onwards, OKEA will change its presentation currency from NOK to USD. Functional currency will remain NOK.

OKEA has a clear ambition to deliver competitive shareholder returns through disciplined value-accretive growth, and the strategy continues to focus on three growth levers:

actively pursuing upside potential in the company's current portfolio,
pursuing mergers and acquisitions to add new legs to the portfolio, and
considering organic projects either adjacent to existing hubs or pursuing new hubs, dependent on financial headroom and attractive risk-reward

The board of directors considers that the company is well positioned to continue to execute on the strategy and deliver value to shareholders going forward.

v 7

⁷ Includes full year contribution from Yme