Aker BP

Earnings Release • Jul 17, 2014

Second quarter 2014 results

Second quarter 2014 results

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE

UNITED STATES OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR

RELEASE WOULD BE UNLAWFUL.

Following the acquisition of Marathon Oil Norge, Det norske will become

one of Europe's largest listed independent E&P companies in terms of

production. In addition, a unitisation agreement for Ivar Aasen has been

finalised, and the company's reserves have increased with 35 per cent.

On 2 June 2014, Det norske announced that the Company had entered into

an agreement to acquire Marathon Oil Norge for a cash consideration of

USD 2.1 billion. The effective date of the transaction is 1 January 2014

and it is expected to close during the fourth quarter of 2014, subject

to regulatory approvals.

After the transaction, Det norske will have 202 million barrels of oil

equivalents in proven and probable (2P) reserves (year-end 2013).

Furthermore, the combined company will have contingent resources

amounting to 101 million barrels of oil equivalents, excluding the

resources from the Johan Sverdrup field. Further identified upside in

Marathon Oil Norge's portfolio is estimated at approximately 80 million

barrels of oil equivalents. Combined 2013 production for the two

companies amounted to approximately 84 000 barrels of oil per day,

making Det norske one of the largest listed independent E&P companies in

Europe in terms of output.

Ivar Aasen

The key engineering and construction activities in the Ivar Aasen

project are on schedule, with production start-up expected in the fourth

quarter of 2016. In June, Det norske signed a unitisation agreement for

the development of the Ivar Aasen field on the Utsira High in the North

Sea, securing the company a 34.78 percent ownership in the field.

Estimated reserves have increased by about 35 percent following the

unitisation and the processing of new ocean-bed seismic. Total

investments for the Ivar Aasen development are estimated at NOK 27.4

billion (nominal value), unaltered compared to the Plan for Development

and Operation (PDO).

Johan Sverdrup

The Johan Sverdrup licensees have entered into negotiations regarding a

unitisation agreement, and the Plan for Development and Operation (PDO)

is expected to be reviewed by the Storting during the spring session of

2015. Aker Solutions has been awarded the main contract for the pre

-engineering of the platform unit, and a letter of intent for delivery

of two of the planned steel jackets for the Johan Sverdrup development

has been signed with Kværner. The jacket for the riser platform is due

for delivery in the summer of 2017, and the jacket of the drilling

platform will be delivered in the spring of 2018.

Exploration

In the second quarter, the company's costs related to exploration

amounted to NOK 304 million, of which NOK 123 million have been entered

as exploration expenses.

Financing

Det norske has secured a fully-committed and underwritten loan facility

for the full cash consideration in connection with the acquisition of

Marathon Oil Norge. On 8 July, the company signed a reserve-based

lending facility (RBL facility). This facility is a senior secured seven

-year USE 3.0 billion lending facility. This includes an additional

uncommitted accordion option of USD 1.0 billion, and will replace the

USD 2.2 billion acquisition bridge facility upon closing of the Marathon

Oil Norge acquisition. This will also refinance Det norske's current

revolving credit facility.

As an integral component of the company's long-term financing plan, Det

norske will strengthen its equity by issuing the NOK equivalent of USD

500 million in new equity through a rights issue. The company's largest

shareholder, Aker ASA, has pre-committed to subscribe for its 49.99 per

cent pro rata share. The remaining offer shares (50.01 per cent) are

fully underwritten by a consortium of banks. With this equity issue, Det

norske has secured the financing of its current work program until start

-up of production from the Johan Sverdrup field.

The acquisition of Marathon Oil Norge will increase Det norske's

financial robustness and its ability to absorb the impact of any changes

in future capital expenditure. This will also improve the company's

credit profile and reduce the cost of capital.

Other events

A new executive management team has now been appointed, and the new

positions will take effect when the integration of Marathon Oil Norge

has been completed. Karl Johnny Hersvik will continue as CEO, leading a

team of eleven executive vice presidents. These are presented on the

company's internet site.

Financials

Det norske oljeselskap reported revenues of NOK 454 (286) million in the

second quarter, where petroleum revenues account for NOK 143 million and

other revenues account for NOK 311 million, relating to gain from two

asset swaps resulting in a 40% ownership in PL457.

Exploration expenses amounted to NOK 123 (271) million, contributing to

an operating gain of NOK 119 (-277) million. Net financial expenses were

NOK -146 (-49) million. Net result for the second quarter was NOK 167 (

-41) million, following a tax income of NOK 193 (284) million.

The equity ratio as at end of Q2 2014 was 28.1 percent (37.7).

Summary of financial results and operating performance:

+--------------------------------+-----+------+-------+-------+-------+-

------+

|MNOK= NOK million |Q2 |Q1 14 |Q4 13 |Q3 13 |Q2 13

|2013 |

| |14 | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Jette (boepd), 70% |1 758|1 458 |2 710 |4 378 |3 594 |2

683 |

| | | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Atla (boepd), 10% |282 |750 |1 031 |981 |1 446 |1

177 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Varg (boepd), 5% |535 |500 |412 |377 |398

|403 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Glitne (boepd), 10% |0 |0 |0 |0 |0

|11 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Enoch (boepd), 2% |0 |0 |0 |0 |0 |0

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|     Jotun Unit (boepd), 7% |122 |188 |175 |204 |175

|191 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Total production (boepd) |2 698|2 895 |4 328 |5 940 |5 613 |4

463 |

| | | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Oil and gas production (Kboe) |245 |261 |398 |547 |511 |1

629 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Oil price realised (USD/barrel) |108 |107 |109 |112 |103

|107 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

| | | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Operating revenues (MNOK) |454 |158 |254 |324 |286

|944 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|EBITDA (MNOK) |201 |-12 |-400 |-348 |-127 |

-1 091 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Cash flow from production (MNOK)|98 |112 |151 |269 |227

|684 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Exploration expenses (MNOK) |123 |110 |544 |588 |271 |1

637 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Total exploration expenditures |304 |151 |400 |581 |373 |1

659 |

|(expensed and capitalised) | | | | | |

|

|(MNOK) | | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Operating profit/loss(-) (MNOK) |119 |-268 |-1 182 |-518 |-277 |

-2 227 |

+--------------------------------+-----+------+-------+-------+-------+-

------+

|Net profit/loss(-) for the |167 |-16 |-329 |-158 |-41 |

-548 |

|period (MNOK) | | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

|No of licences (operatorships) |74 |77(27)|80 (33)|74 (30)|72

(30)|80 (33)|

| |(27) | | | | |

|

+--------------------------------+-----+------+-------+-------+-------+-

------+

Find the report and presentation attached. A live webcast from

the presentation will be available at our website from 08:30

(CET), www.detnor.no.

For more information, please contact:

Jonas Gamre, Investor Relations Manager, tel.: +47 971 18 292

Press Contact, Rolf Jarle Brøske, tel. +47 911 12 475

***

This announcement is not for publication or distribution, directly or

indirectly, in the United States (including its territories and

possessions, any state of the United States and the District of

Columbia). This announcement does not constitute or form part of any

offer or solicitation to purchase or subscribe for securities in the

United States. Securities may not be offered or sold in the United

States absent registration or an exemption from registration. The

securities referred to herein have not been and will not be registered

under the U.S. Securities Act of 1933, as amended (the "U.S. Securities

Act"), or with any securities regulatory authority of any state or other

jurisdiction of the United States, and may not be offered or sold in the

United States or to, or for the account of, U.S. persons (as such term

is defined in Regulation S under the U.S. Securities Act), except

pursuant to an effective registration statement under, or an exemption

from the registration requirements of, the U.S. Securities Act. All

offers and sales outside the United States will be made in reliance on

Regulation S under the U.S. Securities Act. No public offering of

securities is being made in the United States.

This information is subject to disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.

Om Det norske:

Det norske oljeselskap ASA (DETNOR) er et offensivt selskap med

betydelig leteaktivitet på norsk sokkel. Det norske har hovedkontor i

Trondheim, og kontorer i Oslo og Harstad. Det norske er notert på Oslo

Børs med ticker "DETNOR". Les mer om Det norske på www.detnor.no