Aker BP — Investor Presentation 2010

Aug 18, 2010

Second quarter 2010 presentation

TICKER –DETNOR
- CEO Erik Haugane
- CFO Knut Evensen
- Sr. Drilling Advisor Inge Myhre

DETNORSKE

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Disclaimer

All presentations and their appendices (hereinafter referred to as "Investor Presentations") published on www.detnor.no have been prepared by Det norske oljeselskap ASA ("Det norske oljeselskap" or the "Company") exclusively for information purposes. The presentations have not been reviewed or registered with any public authority or stock exchange. Recipients of these presentations may not reproduce, redistribute or pass on, in whole or in part, these presentations to any other person.

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There may have been changes in matters which affect the Company subsequent to the date of these presentations. Neither the issue nor delivery of these presentations shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in these presentations.

These presentations include and are based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness or such information and statements.

An investment in the Company involves risk, and several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in these presentations, including, among others, risks or uncertainties associated with the Company's business, segments, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in these documents.

DETNORSKE

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Highlights

• Positive result from Grevling appraisal well (PL 038D)
• Commerciality of Draupne confirmed (PL 001B)
• Storklakken discovery appraised (PL 460)
• Proved good quality oil
• Dry wildcats on Storkinn, Optimus and Storkollen
• Farm down agreements with Repsol and Faroe
• From 100% to 60% in Ulvetanna prospect (PL 356)
• Farmed down 20% in Clapton (PL 440S) for a 10% carry in the upcoming exploration well.
• Key financials:
• Revenues of 88.7 MNOK
• Net loss of 104.8 MNOK

DETNORSKE

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Production

Production & realised oil prices

• Production in the second quarter averaged 2,059 bpd
• Realised oil price USD 79.9/bbl
• Production from Glitne and Enoch was affected by maintenance
• Maintenance work are planned for both the Jotun and Varg fields in the third quarter

DETNORSKE

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Agenda

• Operations
• Financials
• Exploration
• Development projects
• Outlook & Summary
• Appendix

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Financial position as of second quarter

6

Not audited
DETNORSKE

Elements

• Total cash and tax receivables for refund in 2010/11: 3 917 MNOK
• Interest bearing debt: Short term debt and convertible bond expiring in December 2011: 2 226 MNOK
• "Net cash" position: 1 691, down from 1 829 MNOK at the end of Q1

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Profit & Loss Q2 2010

MNOK	Q2 2010	Q2 2009*	Comment
Operating revenues	88.7	66.8	Realised oil price USD 79.9 per barrel
Exploration expenses	367.2	410.4	See next slide
Change in inventories	-1.6	0.7
Production cost	39.6	37.4
Payroll expenses	1.4	6.2
Depreciation	44.1	12.0	Increased depr. of abandonment "asset" and depreciation of write-ups from 2009
Write downs	32.8	0	Decided to relinquish PL 383 (Struten)
Other expenses	14.5	10.7	Incl. area fees – previously booked as expl.exp
Operating profit/EBIT	-409.3	-410.6
Net financial items	8.0	9.9
Pre-tax profit	-401.4	-400.7
Tax cost	-296.6	-323.6
Net profit	-104.8	-77.1

Not audited *The merger between Det norske and Aker Exploration took place on 22nd december. Aker Exploration is included in the accounts from and including that date.

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Exploration Expenses Q2 2010

MNOK	Q1 2010	Q1 2009	Comment
Seismic, well data, field studies, etc.	1.7	25.3
Exploration expenses from license participation	87.2	124.3	G&G studies in partner licenses
Expensed capitalized exploration wells previous years	9.8	11.4
Expensed dry wells this quarter	293.6	222.4	Optimus, Storkollen, Storkinn
Share of salaries and other operating costs	28,3	21,8
Research and development expenses related to exploration activities	7.9	5.1
Guarantee for Rig contract recognized	-61.4	0	Bredford Dolphin consortium guarantee fee
Exploration expenses	367.2	410.4

Not audited

DETNORSKE

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Balance Sheet 30.06.2010

Assets (MNOK)	*Q2 2010	31.12.09	Q2 2009	Comment
Goodwill	669.7	697.9	864.3
Capitalized exploration exp.	1 697.4	893.5	493.3	Grevling, Storklakken and Draupne
Other intangible assets	1 238.1	1 320.5	1 319.5
Property, plant and equipment	421.1	447.6	302.4	Depreciation producing fields
Tax receivables (2011)	1 409.1	0	596.5
Derivatives	27.7	0	0
Other financial assets	18.0	18.0	62.0
Pre payments	176.9	240.4	0	Long term share of rig-intake Aker B.
Total Fixed Assets	5 657.9	3 617.8	3 638.0
Inventories	17.8	14.7	14.2
Trade receivables	62.2	30.4	96.7
Other short term receivables	494.2	393.7	165.5	Incl. short term rig-intake Aker Barents
Short-term deposits	22.1	22.0	18.3
Calculated tax receivable	2 069.0	2 060.1	211.7
Cash / cash equivalents	438.7	1 574.3	1 348.3
Total Current Assets	3 103.9	4 095.1	1 854.7
Total assets	8 761.8	7 713.0	5 492.7

Not audited *The merger between Det norske and Aker Exploration took place on 22nd december. Aker Exploration is included in the accounts from and including that date.

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Balance Sheet 30.06.2010 (cont.)

Equity and Liabilities (MNOK)	Q2 2010	31.12.09	Q2 2009*	Comment
Equity	3 571.4	3 850.5	3 621.4
Pension obligations	19.5	19.9	15.9
Deferred taxes	1 778.6	1 173.5	1 130.8
Abandonment provision	230.5	224.5	139.9
Deferred revenues	5.6	5.6	52.4
Total Provisions
Derivatives	0	21.8	0
Convertible bonds	406.1	390.6	0
Short-term loan	1 819.7	1 090.3	0	Exploration facility
Trade creditors	345.6	261.9	116.8
Taxes withheld and public duties payable	31.1	22.6	20.7
Deferred revenues	0	53.0	0
Other current liabilities	553.7	598.8	394.7
TOTAL LIABILITIES	5 190.4	3 862.5	1 871.3
Total equity and liabilities	8 761.8	7 713.0	5 492.7

Not audited
*The merger between Det norske and Aker Exploration took place on 22nd december. Aker Exploration is included in the accounts from and including that date.

DETNORSKE

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Agenda

• Operations
• Financials
• Exploration
• Development projects
• Outlook & Summary
• Appendix

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Promising results from Grevling appraisal

• Appraisal program completed by the drilling of 15/12-23 and -23A
• Oil filling levels and reservoir properties established
• New data acquired for potential production stimulation
• Recoverable oil 38 – 94 MBO
• Well results and potential development solutions to be studied
• Talisman is operator
• Det norske holds 30 percent

DETNORSKE

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Grevling

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Exploration roadmap

PL	Prospect	net %	Drilling	Mboe Gross resources
392	Dalsnuten	10	Q3-10	600
341	Stirby	30	Q3-10	150-340
102	David	10	Q3-10	16-52
414	Kalvklumpen	40	Q1-11	75-180
468	Dovregubben	100*	Q1-11	120-200
450	Storebjørn	75*	Q2-11	40-90
035	Krafla	25	Q2-11	10-50

• farm-down in negotiation

PL	Prospect	Potential
338	Apollo	Upside to Draupne
501	Avaldsnes	Potental for PL 265

DETNORSKE

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PL 341 Stirby – spudded this week

• Large HTHP prospect
• East Brae, Miller, Gudrun analogue
• Recoverable gas/condensate
• Stirby Upper 150 MBOE
• High case Upper 800 MBOE
• Stirby Deep 190 MBOE
• Main risk
• Reservoir quality
• Stratigraphic seal
• Water depth 120 meters
• Det norske holds 30 percent and is operator

DETNORSKE

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PL 392 Dalsnuten – east of Gro discovery

• Gas prospect to be drilled by Aker Barents
• Gross unrisked resources 600 mmboe
• Norske Shell is operator
• Det norske holds 10 percent
• Drilling to commence after Gro well
• Water depth 1 350 to 1 500 meters
• Main risk: presence of reservoir
• A license with many prospects

DETNORSKE
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PL 102C David – potential addition to Frøy

• Significant oil prospect near Frøy
• Potentially recoverable oil
• Brent 16-26 MBOE
• Statfjord 31-52 MBOE
• Main risk
• Oil migration
• Water depth 119 m, TD 3100 m
• Spud September, Ocean Vanguard
• Operator Total
• Det norske holds 10 percent

DETNORSKE

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PL 356 Ulvetanna farm-down to Repsol

• Planned drilled in Q1 2011
• Gross unrisked resources
• ~ 140 mill boe
• 40 percent farm out to Repsol
• Portfolio and risk optimisation
• Cost recovery terms

DETNORSKE

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PL 440S Clapton farm-down to Faroe Petroleum

• Farm-down to Faroe Petroleum from 30 percent to 10 percent interest
• Det norske has offered to resign as operator
• Faroe to carry Det norske's 10 percent interest in the upcoming exploration well
• Planned drilled in Q2 2011

DETNORSKE

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Agenda

• Operations
• Financials
• Exploration
• Development projects
• Outlook & Summary
• Appendix

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Frøy – Contractor negotiations ongoing

Preferred development solution:
- A Sevan production unit
- Wellhead platform
- Production wells
- Gas export pipeline to UK
- No final agreements signed

Current view on financing:
- Lease of production unit
- Contractor financing of wellhead platform in construction period

PDO schedule and detailed financial solution will be decided by the ongoing negotiations

Production start summer 2013

DETNORSKE

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Draupne – progressing according to plan

• Recoverable reserves of 110 million to 150 Mboe
• About 95 percent inside Det norske operated licenses
• Production test:
• Good productivity – App. 12 000 bpd per well
• Oil of good light quality
• Draupne is appraised with three wells and one sidetrack
• Aiming for a PDO next year and first production in 2014
• Both stand alone development on Draupne and joint development of Luno under consideration

DETNORSKE

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Agenda

• Operations
• Financials
• Development projects
• Exploration
• Outlook & Summary
• Appendix

DETNORSKE

Rapport for 2. kvartal 2010

Trondheim, 18. august 2010

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Outlook & Summary

Exploration

• Two high impacts well on the menu – Dalsnuten and Stirby

Field developments

• Frøy – aiming for contractor financing in construction period
• Draupne is progressing well
• These two developments could bring Det norske’s production to 40 000 BOPD

Business development

• Two farm-down agreements – a positive sign for the asset market

Financials

• Current exploration program is fully funded

DETNORSKE

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DETNORSKE

NEST STØRST PÅ NORSK SOKKEL

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The making of a discovery

TICKER –DETNOR

• Sr. Drilling Advisor Inge Myhre

DETNORSKE

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Risk Based Management

• Systematically identify risk (probability and consequences)
• Reduce risk to an acceptable level
• Control risk
• Use the identified risk for decision-making
• Regular updates and reviews

Two years

Acquiring a license and accept work commitment

G&G work,

Recommendation to drill, site surveys

6 months to one year

Basis of Design, Anchore analysis, Well design, Blow out analysis, Risk analysis

Application for discarges and emissions and environmental risk assessment, 15 weeks before spud

AFE Detailed engineering

Application for Consent

Preparation to Spud Drill on Paper, Verification activity

Spud, follow up of contractors and operational activity

DETNORSKE

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To drill or not to drill

• Acquire relevant subsurface data
• Interpretation of well logs and seismic data
• Match geological knowledge and geophysical understanding
• Tematically identify risk
• Probability and consequences
• Set reservoir parameters
• Volumes and risking
• Set by the quality assurance group
• Recommendation to drill or drop
• First to Det norske management, thereafter to the license management committee

DETNORSKE

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Det norske – well planning

Weeks prior to spud

26 w	19 w	15 w	9 w	4 w	2 w	0 w
RTD (Rec. To Unit)	Basis of Design	Discharge application	Drilling concent	AFE & detailed procedures	Application to unit	Preparing for spud
	• Long lead items
• Beredskapsanalyse
• Ankringsanalyse
• Referansebrønner
• Datainnsamlings program
• Utarbeide brønndesign
• Blow out analyse
• Risiko analyse av brønndesign	• Miljørisiko analyse
• Kjemikalievurdering og forbruk
• Slamprogram
• Sementprogram
• Miljødata	• Boreprogram
• SUT avviks vurdering
• Medisinsk beredskap
• Trafikkovervåkning og skipskollisjon
• Lokasjons spesifikk risikoanalyse
• Utarbeide bro-dokumenter
• Oljevernplan	• Detaljprosedyrer for boring
• Operasjonell risiko analyse
• Budsjett for boring
• Beredskapsplan
• Logistikk plan
• Prosedyre for ankring		• Beredskapstrening
• Pre-spud møte
• Ankringsmøte
• Mobilisering av utstyr
RTT (Rec. To Test)	Basis of Design	Test programme	AFE & rig procedures	Preparing for test	Testing
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	• Long lead items
• Referansebrønner
• Datainnsamlings program
• Utarbeide testdesign
• Riggstatus
• Risiko analyse av testdesign		• Detaljprosedyrer for testing
• Operasjonell risiko analyse
• Budsjett for testing
• Logistikk plan

DETNORSKE

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Pre well planning

• Safety issues – acquisition of site survey
• Shallow gas pockets
• Corals
• Ice plough marks
• Other obstacles to the well – boulders, shallow faults, etc.
• Mapping of seabed and sub-seabed condition
• Identify corals with side scan sonar
• Verification with camera

DETNORSKE

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How to drill a well

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Key objective - Pressure control

Standard well

HTHP well

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Example of Primary and secondary safety barriers

	Drawing Ref. : WB 1.2.c rev.1	Field: Stirby
	Date prepared: 09.02.2010	Well : 24/12-6S
	Prepared by : Ove Flågang
	Verified by : H. Ågotnes	Reservoir Pressure: 827 Bar
	Drilling
Drilling Hole for Production Casing
	Barrier Qualification Planning
	Primary Barrier
	Barrier Element	Barrier Qualification
	Fluid Column	1,71 S.g. based on pore pressure
	Secondary Barrier
	Barrier Element	Barrier Qualification
	Intermediate Casing Cement	LOT tested to 42 bar with 1,71 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
	Drawing Ref. : WB 1.4.bv rev. 1	Field: Stirby
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	Date prepared: 09.02.2010	Well: 24/12-6S
	Prepared by : Ove Flågang
	Verified by : H. Ågotnes	Reservoir Pressure: 827 Bar
	Running Casing
Production casing to be set above reservoir
	Barrier Qualification Planning
	Primary Barrier
	Barrier Element	Barrier Qualification
	Fluid Column	1,71 S.g. based on pore pressure
	Secondary Barrier
	Barrier Element	Barrier Qualification
	Intermediate Casing Cement	LOT tested to 42 bar with 1,71 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Casing specification
	Intermediate Casing Cement	LOT tested to 42 bar with 1,71 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Pressure test to 455 bar with 1,3 s.g.
Casing specification
	Casing Gauge	Inflow tested
	Welhead
Drilling BOP w/Annular Preventer

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The discovery – Draupne test flare