Aker BP — Investor Presentation 2018

Feb 2, 2018

Q4 2017

AKER BP ASA

KARL JOHNNY HERSVIK, CEO ALEXANDER KRANE, CFO 2 FEBRUARY 2018

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 ASA Key events in Q4-17

Operations

• Q4 production 135.6 mboepd 2017 production 138.8 mboepd
• High drilling and maintenance activity
• Fatal accident on Maersk Interceptor

Financial results

• Q4 EBITDA USD 509 million, EPS USD 0.10
• Q4 Free cash flow* of USD 235 million (USD 0.68 per share)
• Quarterly dividend of USD 112.5 million (DPS of USD 0.31) to be disbursed in February

Business development

• Three PDOs submitted
• Valhall/Hod interest increased to 90% following transactions with Hess and Pandion

OPERATIONS Oil and gas production

• Q4 production 135.6 mboepd (157.9 pro forma)
• 2017 production 138.8 mboepd (159.6 pro forma)
• Ivar Aasen at plateau – one year ahead of plan
• High drilling efficiency
• Strong operational performance
• Edvard Grieg processing capacity

Valhall production increased

• Positive contribution from new wells
• Maintenance in Q3

Skarv production below plan in Q4

• Three wells shut in due to technical issues one was repaired during the quarter
• Pressure build-up test on Ærfugl test producer

Net production* (boepd)

OPERATIONS Three PDOs submitted – significant improvements delivered

Financials

Q4 2017

FINANCIALS Statement of income

(USD million)	Q4 2017	Q4 2016	2017	2016
Total operating income	726	656	2,563	1,364
Production costs	147	121	523	227
Other operating expenses	14	5	28	22
EBITDAX	565	529	2,012	1,115
Exploration expenses	56	44	226	147
EBITDA	509	485	1,786	968
Depreciation	183	160	727	509
Impairment losses	21	45	52	71
Operating profit/loss (EBIT)	305	281	1,007	387
Net financial items	(57)	(71)	(196)	(97)
Profit/loss before taxes	248	210	811	290
Tax (+) / Tax income (-)	214	277	536	255
Net profit/loss	34	(67)	275	35
EPS (USD)	0.10	-0.20	0.81	0.15

FINANCIALS Statement of financial position

Assets (USD million)	31.12.17	31.12.16
Goodwill	1,860	1,847
Other intangible assets	1,982	1,728
Property, plant and equipment	5,582	4,442
Receivables and other assets	775	722
Calculated tax receivables (short)	1,586	401
Cash and cash equivalents	233	115
Total Assets	12,019	9,255

Equity and liabilities (USD million)	31.12.17	31.12.16
Equity	2,989	2,449
Other provisions for liabilities incl. P&A (long)	2,942	2,335
Deferred tax	1,307	1,046
Bonds	622	510
Bank debt	2,767	2,030
Other current liabilities incl. P&A (short)	1,041	792
Tax payable	351	93
Total Equity and liabilities	12,019	9,255

Fourth quarter cash flow and liquidity FINANCIALS

Strong cash flow in Q4-17

• Free cash flow (ex M&A effects) USD 235 million
• Acquisition of Hess Norge AS, sale to Pandion

Attractive M&A deals

• Hess Norge acquired for USD 2.0 billion
• Included refundable tax loss worth USD ~1.5 billion
• Fully funded with USD 500 million in new equity and USD 1.5 billion in bridge loan at Libor + 1.5%
• Sold 10% of Valhall/Hod to Pandion for USD 170 million
• Net cost of increasing Aker BP's interest in Valhall/Hod from ~36% to 90% was USD ~330 million (USD 2.6/boe*)

Robust balance sheet per year end 2017

• Net interest-bearing debt (book value) USD 3.16 billion
• Hess tax loss expected to be disbursed in 2018
• Leverage ratio of 1.4x
• Cash and undrawn credit of USD 2.9 billion

Item	2017 actual	2017 guidance	2018 guidance
CAPEX	888 million	USD 900 – 950 million	USD ~1.3 billion
EXPEX	262 million	USD 280 – 300 million	USD ~350 million
Production	138.8 mboepd	135 – 140 mboepd	155 – 160 mboepd
Production cost	USD 10.3 per boe	USD ~10 per boe	USD ~12 per boe
Decommissioning cost	86 million	USD 80 – 90 million	USD ~350 million

Note: Guidance based on USD/NOK 8.0

2018 plans

OPERATIONS Investing to maximize value of existing production hubs

High activity in 2018 – maturing more opportunities

EXPLORATION 2018 exploration schedule

License	Prospect name	Operator	Aker BP share	Pre-drill mmboe*	Time
PL340	Frosk	Aker BP	65 %	3 - 21	A Q1
PL790	Raudåsen	Aker BP	30 %	9 - 74	B Q1
PL839	Kvitungen Tumler	Aker BP	24 %	37 - 269	C Q1
PL659	Svanefjell	Aker BP	50 %	17 - 331	D Q2
PL858	Stangnestind	Aker BP	40 %	30 - 190	E H2
PL777	Hornet	Aker BP	40 %	17 - 166	F Q4
PL033	Hod Appraisal	Aker BP	90 %	-	Q4 G
PL857	Gjøkåsen	Statoil	20 %	26 - 1427	H Q3
PL721	Gråspett	DEA	40 %	32 - 263	I Q4
PL852	Scarecrow	Spirit	40 %	83 - 245	J Q4
PL722	Shenzhou	Statoil	20 %	40 - 295	K Q4
PL405	Cassidy	Spirit	15 %	5 - 48	L Q4

* Preliminary volume span (gross) L

EXPLORATION APA 2017 license awards

Awarded 23 new licenses – 14 as operator

Adding growth opportunities

• North Sea (3 licenses)
• Norwegian Sea (1 license)
• Barents Sea (3 licenses)

Strengthening position around existing hubs

• Alvheim area (1 license)
• Ivar Aasen/Johan Sverdrup area (5 licenses)
• Skarv area (2 licenses)
• Ula area (7 licenses)
• NOAKA (1 license)
• Two licenses with firm well commitments
• PL 916 near Johan Sverdrup Aker BP 40% and operator
• PL 942 west of Skarv Aker BP 30% and partner

CONCLUDING REMARKS Priorities going forward