Aker BP — Interim / Quarterly Report 2018

Feb 6, 2019

Fourth Quarter 2018

Aker BP ASA

Karl Johnny Hersvik, CEO David Torvik Tønne, CFO 6 February 2019

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.

AKER BP 2018 Highlights

AKER BP Fourth quarter 2018 highlights

Operations

• Production increased to 156 mboepd
• New wells on stream at Alvheim and Valhall
• Field developments on track

Finance

• Adj. EBITDA USD 667 million1)
• Dividend USD 0.31 per share
• Net debt reduced to USD 1.97 billion

Business development

• Acquisitions of King Lear and Total portfolio completed
• Hess tax loss refunded

Key figures		Q4-18	Q4-17	2018	2017
Production	mboepd	155.7	135.6	155.7	138.8
Realized oil price	USD/bbl	64.3	64.6	71.9	56.2
Realized gas price	USD/scm	0.30	0.26	0.29	0.21
Total income	USDm	886	726	3 750	2 563
Operating profit	USDm	403	305	1 775	1 556
Profit before taxes	USDm	359	248	1 805	811
Net profit	USDm	54	34	476	275
Effective tax rate	USDm	85%	86%	74%	66%
EPS	USD	0.15	0.10	1.32	0.81
DPS	USD	0.31	0.19	1.25	0.74

Discovery at Froskelår EXPLORATION

Growing the Alvheim area resource base

Preliminary results

• Oil and gas
• Within pre-drill range of 45-153 mmboe
• May straddle UK-Norway border

Drilling operation ongoing

• Coring and data acquisition
• Horisontal sidetrack

Way forward

• Drill test producer on Frosk also testing Froskelår NE
• Rumpetroll exploration well
• Concept studies based on results

OPERATIONS Record production and high regularity

Production per hub, mboepd

Production efficiency per hub

NCS DRILLING EFFICIENCY Leading drilling performance

Exploration wells by operator 2018

FIELD DEVELOPMENTS ON TRACK Improvement program showing tangible results

Example: Valhall Flank West

Benchmark Current estimate

LEAN MINDSET Reducing cost, waste and emissions

CO2 emissions intensity1)

kg CO2 per boe produced (2017)

The world's first offshore lifeboat with electric propulsion

• Latest design of BMW Li-ion batteries
• Successful Factory Acceptance Test performed in January 2019
• 50 % cost reduction on regular inspection and maintenance

Digitalization demonstrating its value in production optimization DIGITALIZATION GAINING MOMENTUM Optimizing production with artificial intelligence

Examples

	 Chalk influx a challenge at Valhall
Chalk influx prediction	 By using machine learning on production data from the Cognite data platform (CDP) the chalk influx can be predicted and well breakdown deferrals can be avoided

Dynamic modelling of max flow

• Multiphase flow meters on 3rd party separator at Alvheim need to be calibrated monthly. During the calibration the fixed limit of the Alvheim separator becomes a constraint, and production is deferred
• New tool reduce deferrals by providing live optimized production limits based on current fluid conditions

STRATEGIC ALLIANCES Alliances established as a key pillar in improvement agenda Reshaping the value chain with alliances

Growing the resource base in 2018 OPERATIONAL REVIEW

Development in 2P reserves (mmboe) Development in 2C contingent resources (mmboe)

EXPLORATION 2018 exploration highlights

Value creation from 2018 exploration

120-280

USD million1)

Frosk oil discovery

~50

mmboe (gross)

APA 2018 awards

21 new licences (11 operated)

1) Estimated NPV10 of Frosk and Gekko discoveries (oil price range USD 50-70 per barrel)

Gekko appraisal

~40

mmboe (gross)

EXPLORATION 2019 exploration program

	License Prospect	Operator	Aker BP share	Pre-drill mmboe
PL869	Froskelår Main	Aker BP	60%	45 -153
PL869	Froskelår NE	Aker BP	60%	7 -23
PL869	Rumpetroll	Aker BP	60%	45 -148
PL033	Hod Deep West	Aker BP	90%	2 -22
PL916	JK	Aker BP	40%	100 -420
PL857	Gjøkåsen	Equinor	20%	26 -1427
PL782S	Busta	ConocoPhillips	20%	54 -199
PL942	Ørn	Equinor	30%	8 -40
PL777	Hornet	Aker BP	40%	14 -137
PL814	Freke-Garm	Aker BP	40%	16 -81
PL502	Klaff	Equinor	22%	50 -372
PL762	Vågar	Aker BP	20%	62 -128
PL019C	Kark	Aker BP	60%	15 -48
PL838	Shrek	PGNIG	30%	10 -22
TBD	NOAKA area	Aker BP

Currently drilling

Planned to be drilled in 2019

AKER BP New members of Executive Management Team

Lene Landøy, SVP Strategy & Business Development

Lene Landøy (born 1979) comes from the position of VP Strategy, Portfolio and Analysis and has been with the company since January 2017. Landøy has a master's degree in finance, from NHH Norwegian School of Economics / University of California Los Angeles (UCLA). She also holds a master's degree in international finance from the Skema Business School in France. Prior to joining Aker BP, she led Equinor's business development unit on the Norwegian shelf.

David Tønne, Chief Financial Officer

David Tønne (born 1985) comes from the position of VP Corporate Controlling in Aker BP and has been with the company since January 2017. Tønne holds a master's degree in finance from NHH Norwegian School of Economics. Prior to Aker BP, he worked for seven years in The Boston Consulting Group's Oil and Gas team.

Financial review

FINANCIAL REVIEW 2018 financial highlights

USD million

Statement of income FINANCIAL REVIEW

USD million	Q4 2018	Q3 2018	Q4 2017	2018	2017
Total operating income	886	1,000	726	3,750	2,563
Production costs	187	165	147	689	523
Other operating expenses	8	4	14	17	28
EBITDAX	692	830	565	3,044	2,012
Exploration expenses	72	94	56	296	226
EBITDA	619	736	509	2,748	1,786
Depreciation	196	189	183	752	727
Impairment losses	20	-	21	20	52
Operating profit/loss (EBIT)	403	548	305	1975	1,007
Net financial items	(44)	(58)	(57)	(171)	(196)
Profit/loss before taxes	359	490	248	1,805	811
Tax (+) / Tax income (-)	305	365	214	1,328	536
Net profit/loss	54	125	34	476	275
EPS (USD)	0.15	0.35	0.10	1.32	0.81

Statement of financial position FINANCIAL REVIEW

USD million

Assets	31.12.18	30.09.18	31.12.17
Goodwill	1,860	1,860	1,860
Other intangible assets	2,433	1,979	1,982
Property, plant and equipment	5,746	6,039	5,582
Receivables and other assets	681	752	775
Calculated tax receivables (short)	11	1,607	1,586
Cash and cash equivalents	45	127	233
Total Assets	10,777	12,364	12,019

Equity and liabilities	31.12.18	30.09.18	31.12.17
Equity	2,990	3,083	2,989
Other provisions for liabilities incl. P&A (long)	2,581	3,024	2,942
Deferred tax	1,800	1,671	1,307
Bonds	1,110	1,122	622
Bank debt	908	1,853	2,767
Other current liabilities incl. P&A	835	857	1,041
Tax payable	552	754	351
Total Equity and liabilities	10,777	12,364	12,019

Fourth quarter cash flow FINANCIAL REVIEW

USD million

Tax payments FINANCIAL REVIEW

USD million

²¹ 1) Estimated current tax on income for fiscal year 2019 at various oil price scenarios, assuming USDNOK 8.5. Excluding potential payments related to uncertain tax cases.

FINANCIAL REVIEW Guidance summary

	2018 guidance	2018 actual	2019 guidance1)
Production	155-160 mboepd	155.7 mboepd	155-160 mboepd
Capex	USD 1.25 billion	USD 1.20 billion	USD 1.6 billion
Exploration spend	USD 400 million	USD 359 million	USD 500 million
Abandonment spend	USD 250 million	USD 243 million	USD 150 million
Production cost per boe	USD ~12	USD 12.1	USD ~12.5
Dividends	USD 450 million	USD 450 million	USD 750 million

Concluding remarks

AKER BP Priorities ahead

e t u c e x E	 Safe and efficient operations  Excellent project execution
e v o r p m I	 Lead the digital transformation  Reorganize value chains with alliances  Apply new technology to drive value creation
w o r G	 High exploration activity  Maturing resources to reserves

Dividend plan (USD million)