Aker BP — Interim / Quarterly Report 2020

Jul 14, 2020

Second quarter 2020

Aker BP ASA

14 July 2020

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.

Building momentum Q2-2020 | AKER BP

Stable operations despite COVID-19 and volatile markets

Tax changes unlocking new profitable investments

PDO submitted for Hod – commercial agreement in place for NOAKA

Q2-2020 | STABLE OPERATIONS IN CHALLENGING TIMES Efficient management of the COVID-19 situation

Protecting our people and maintaining full production

Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20

Continued strong operational performance Q2-2020 | STABLE OPERATIONS IN CHALLENGING TIMES

Value creation across the portfolio Q2-2020 | STABLE OPERATIONS IN CHALLENGING TIMES

• Skogul on production
• Kameleon infill underway

• Frosk test production

• Drilling campaign completed

• Planned maintenance

• Increasing water injection

• Two IOR wells planned for H2

• Maturing Hanz

• Flank West drilling completed

• Well stimulation continues

• Hod PDO submitted

• Ærfugl on schedule

• First Ærfugl well on production

• Alve NE spud in H2

• Plateau production reached

• 11 wells on stream
• Phase 2 on track

Tax changes support further value creation Q2-2020 | TEMPORARY CHANGES IN PETROLEUM TAX INTRODUCED

• Accelerate cash flow and stimulate investments through the cycle
• Crucial to maintaining competence and jobs in the Norwegian oil & gas industry

Increased value creation for all stakeholders

PDO submitted for Hod Q2-2020 | SEIZING NEW OPPORTUNITIES

Building on the successful Valhall Flank West project

1) Gross reserves including additional production from existing wells due to extension of licence period 2) Oil price required to achieve zero NPV at 10% discount rate on after-tax basis for Aker BP. Tariffs paid to Valhall are eliminated.

Commercial agreement paves way for NOAKA area development Q2-2020 | SEIZING NEW OPPORTUNITIES

NOAKA: Krafla, Fulla and North of Alvheim 9

Financial review

Q2-2020 | FINANCIAL REVIEW Oil and gas sales

Q2-2020 | FINANCIAL REVIEW Lifted volumes and realised prices

Crude oil liftings H1-20201)

mmbbl

Breakdown of realised liquids prices in Q2 USD/bbl

1) Price data sources: Platts (Brent Dated), Bloomberg (Brent active contract) 2) Realised gains on hedging in Q2 adjusted for difference in tax rate to reflect equivalent oil price effect for physical volumes

Q2-2020 | FINANCIAL REVIEW Summary of tax changes

	Ordinary tax system	Temporary tax system
Corporate tax (22%)	Capex depreciated over 6 years	No change
Special tax (56%)	Capex depreciated over 6 years	Immediate depreciation
Uplift on capex	20.8% over 4 years	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

Income statement Q2 -2020 | FINANCIAL REVIEW

USD million	Q2 2020	Q1 2020	Q2 2019
Total income	590	872	785
Production costs	196	156	198
Other operating expenses	15	-	4
EBITDAX	379	716	583
Exploration expenses	50	50	60
EBITDA	329	666	522
Depreciation	286	277	168
Impairments	(136)	654	-
Operating profit (EBIT)	178	(266)	354
Net financial items	(27)	(149)	(86)
Profit/loss before taxes	151	(414)	268
Tax (+) / Tax income ( - )	(19)	(80)	206
Net profit/loss	170	(335)	62
EPS (USD)	0.47	(0.93)	0.17

Q2-2020 | FINANCIAL REVIEW Tax effects in the financial statements

Effective tax Q2-2020

Tax movements in balance sheet

Statement of financial position Q2-2020 | FINANCIAL REVIEW

USD million

Assets	30.06.20	31.03.20	31.12.19	Equity and liabilities	30.06.20	31.03.20	31.12.19
Goodwill	1,647	1,647	1,713	Equity	1,912	1,813	2,368
Other intangible assets	2,054	2,001	2,537	Other provisions for liabilities incl. P&A (long)	2,655	2,699	2,645
Property, plant and equipment	7,175	7,061	7,023	Deferred tax	2,471	2,153	2,235
Right-of-use asset	137	171	194	Bonds and bank debt	3,712	3,593	3,287
Receivables and other assets	546	524	652	Lease debt	236	277	313
Calculated tax receivables	187	-	-	Other current liabilities incl. P&A	901	931	1,017
Cash and cash equivalents	142	323	107	Tax payable	-	260	361
Total Assets	11,889	11,727	12,227	Total Equity and liabilities	11,889	11,727	12,227

Cash flow Q2-2020 | FINANCIAL REVIEW

USD million

Q2-2020 | FINANCIAL REVIEW Maintaining financial strength

Recent developments

Debt and liquidity (USD billion)

1) By S&P Global and Moody's 2) Cash and undrawn capacity on RCF 3) Represents the DETNOR02 bond which has been redeemed after the end of the quarter

Tax changes improve liquidity and robustness Q2-2020 | FINANCIAL REVIEW

Lower break-even oil prices

Average break-even oil price for projects with CAPEX in 2020-20221)

Accelerated tax deductions

Aker BP's 2020 capex guidance, USD million

Improved cash flow profile

Illustrative company cumulative cash flow

Expecting tax refund for fiscal year 2020 Q2-2020 | FINANCIAL REVIEW

Tax payments (USD million)

1) Estimated tax payments/refunds related to fiscal year 2020 assuming different average Brent oil prices for the full year and USDNOK 10. The tax refunds are fixed for H2-20. The amounts for H1-21 to be adjusted after year-end to reflect actual 2020 results. Potential settlements of uncertain tax cases are excluded. 21

Q2-2020 | FINANCIAL REVIEW Guidance for 2020

Q2-2020 | AKER BP Summary

Challenging business environment

COVID-19 and oil price collapse

Responding quickly

Flexible portfolio and organisation

Seizing new opportunities

Supported by tax changes

Q2-2020 | APPENDIX Updated 2020 exploration programme

Four wells postponed – spend reduced to USD 350 (500) million

License	Prospect	Operator	Aker BP share	Pre-drill mmboe	Status
PL1008	Nidhogg 1	Aker BP	60 %	37 96 -	Discovery 6-15 mmboe
PL719	Sandia 2	Spirit	20 %	23 527 -	Dry
PL533	Bask 3	Lundin	35 %	14 585 -
PL127C	Alve NE 4	Aker BP	88 %	8 25 -
PL780	Sørvesten 5	Spirit	40 %	15 35 -
PL981	Mercx Ty 6	Lundin	40 %	22 92 -
PL858	Stangnestind	Aker BP	40 %	13 108 -	Postponed
PL722	Shenzhou	Equinor	20 %	191 505 -	Postponed
PL554	Garantiana W	Equinor	30 %	7 28 -	Postponed
PL442	Liatårnet app.	Aker BP	90 %		Postponed

Summary of temporary changes to petroleum taxation Q2-2020 | APPENDIX

	Elements	Ordinary tax system	Temporary tax system
s t	Corporate tax	Tax rate: 22% 6 years straight line depreciation	Tax rate: 22% 6 years straight line depreciation
n e m	Special tax	Special tax rate: 56% 6 years straight line depreciation	Tax rate: 56% Immediate deduction in year 1
e el	Uplift	20.8% uplift over 4 years (5.2% each year)	24% uplift deductible in year 1
x a T	Interest deduction	Interest cost fully deductible against corporate tax (22%) and partly deductible against special tax (56%) based on remaining tax balances	No additional bases for interest deductions against special tax (56%) as investment is immediately deducted in year 1 for special tax
	Time limit		Applicable for all investments in 2020 and 2021
s s t t n mi e m e li e el m r ti e d h n t	PDO limit		In addition, applicable for all investments according to PDO/PIO under the following limitations; • PDO/PIO has to be delivered within 31.12.2022 • Application for exception of PDO/PIO delivered within 31.12.2022 • Application for major deviation from previously submitted and approved PDO/PIO delivered within 31.12.2022 • Application has to be approved by the Ministry of Petroleum and Energy after 12 May 2020 and within 31.12.2023 • Applicable for investments made up to and including year of production start for the development as defined in PDO/PIO
O a	Loss carry forward	Loss carry forward can be brought forward with an interest compensation (risk free interest) Refund of tax value for exploration costs if company in a tax loss position	Refund of tax value of all loss carry forward incurred in the period 2020-2021 – not only related to exploration costs Negative tax instalments is implemented

Q2-2020 | APPENDIX Guidance summary

	2020 guidance1)	2020-6M actual	Comments
Production	205-220 mboepd	209 mboepd	Net production excl. over/underlift
Capex	USD ~1.35 billion2) (previously USD ~1.2 billion)	USD 732 million	Excl. capitalized interest Incl. share of lease payments
Exploration spend	USD ~350 million	USD 112 million	Incl. share of lease payments
Abandonment spend	USD ~200 million	USD 39 million	Incl. share of lease payments
Production cost per boe	USD 7-8	USD 8.9	Per boe produced
Dividends	USD 425 million	USD 283 million