Equinor — Interim / Quarterly Report 2014

Apr 29, 2014

1st Quarter 2014 Torgrim Reitan, CFO

Highlights

• Strong financial results and operational performance
• Good contribution from North America value chain
• Project execution on track,
• − Gudrun on stream,
• − Johan Sverdrup concept selection
• Firm cost control
• Proposed 1Q 2014 dividend of 1.80 NOK/share

Financial results

• Lower liquid price and increased gas price
• − Strengthening on NOK
• Firm cost control
• − Higher transportation
• − New field start-up
• Lower tax rate

Adjusted earnings by segment

Production

• Production as expected,
• − high liquids production
• − lower gas offtake
• − divestments, redetermination and decline as expected
• High regularity on NCS

Equity production

Realising strong prices

Average invoiced prices øre/sm3

• Modernised European gas sales portfolio
• − Increased gas indexation and direct sales
• − Increased flexibility
• Secured access to premium markets in North America
• − Strong contribution in first quarter
• − Exceptionally cold winter

Cash flow 2014

Outlook

2014

• ~ 2% production growth from rebased level
• Organic capex ~ USD 20 billion
• Exploration activity ~ USD 3.5 billion
• ~ 50 exploration wells
• Planned maintenance ~ 55 mboed
• − 2Q ~ 110 mboed, 3Q ~ 60mboed

Supplementary Information

Items impacting net operating income	11
Tax rate reconciliation	12
Cost and DD&A	13
Net financial items	14
Development in net debt to capital employed	15
MPR Adjusted Earnings – Break down	16
Statoil Equity Production per Field – DPN	17
Statoil Equity Production per Field – DPI & DPNA	18
Exploration Statoil group	19

Sensitivities – Indicative effects on 2014 results	20
Indicative PSA and royalty effect	21
Reconciliation of Adjusted Earnings to Net Operating Income	22
Forward looking statements	23
Investor Relations in Statoil	24

Items impacting net operating income 1Q

NOK bn	1Q 2014			1Q 2013
	Before tax	After tax	Before tax	After tax
Impairments (Net of reversal)	0.2	0.2	0.0	0.0
DPI	0.4	0.4	0.0	0.0
MPR	(0.2)	(0.1)	0.0	0.0
Derivatives IAS 39	0.1	(0.1)	1.6	0.5
DPN	0.4	0.1	0.8	0.2
MPR	(0.3)	(0.2)	0.8	0.3
(Overlift)/Underlift	(0.1)	0.1	(0.4)	(0.3)
DPN	(0.2)	0.0	0.4	0.1
DPI	0.1	0.1	(0.9)	(0.4)
Other	(5.5)	(7.4)	3.3	2.7
Operational Storage (MPR)	0.3	0.2	(0.2)	(0.1)
Other adjustments (DPN+DPI+MPR)	(2.8)	(4.9)	0.7	0.2
Provisions (DPN+MPR)	0.0	0.0	4.9	4.3
(Gain)/Loss sale of asset (DPN+DPI+MPR)	(1.8)	(1.8)	0.1	0.0
Currency effects fixed assets (DPI)	0.0	0.0	0.0	(0.1)
Currency effects fixed assets (MPR)	0.0	0.0	0.0	0.1
Eliminations	(1.1)	(0.9)	(2.3)	(1.7)
Adjustments to net operating income	(5.4)	(7.2)	4.4	2.8

Tax rate reconciliation 1Q 2014

Composition of tax expense and effective tax rate	Adjusted earnings	Tax on adjusted earnings	Tax rate
D&P Norway	34.2	(25.2)	74 %
D&P International	6.9	(3.0)	43 %
Marketing, Processing & Renewable energy	5.9	(2.4)	41 %
Other	(0.9)	0.4	39 %
Total adjusted earnings	46.0	(30.2)	65.6 %
Adjustments	5.4	1.8
Net Operating Income	51.4	(28.4)	55.3 %
Tax on NOK 1.7 bn taxable currency gains		(0.5)
FX and IR derivatives	1.8	(0.5)
Financial items excluding FR and IR derivatives	(1.1)	1.0
Net finanical income	0.7	(0.1)	9.0 %
Income before tax	52.2	(28.5)	54.6 %

Cost and DD&A

Focus on cost1) Adjusted opex and SG&A, NOK bn

New production increases DD&A1) Adjusted DD&A, NOK bn

Net Financial Items 1Q 2014

Development in net debt to capital employed

MPR Adjusted Earnings – Break down

DPN 1Q 2014 Statoil Equity Production per Field

Statoil-operated	Statoil share	Produced volumes			Partner-operated	Statoil share	Produced volumes
1000 boed		Liquid	Gas	Total	1000 boed		Liquid	Gas	Total
Alve	85.00 %	6.0	8.6	14.5	Vilje	28.85%	5.5	0.0	5.5
Fram	45.00 %	18.4	5.0	23.3	Ekofisk	7.60%	12.8	1.9	14.7
Gimle	65.13%	0.8	0.1	0.8	Enoch	11.78%		0.0	0.0
Grane	*1	31.1	0.0	31.1	Giøa	5.00%	3.1	3.3	6.4
Gullfaks	51.00 %	47.8	26.2	74.0	Ormen Lange	*8	3.1	66.1	69.2
Heidrun	13.04 %	6.9	1.7	8.6	Ringhorne Øst	14.82%	1.8	0.0	1.8
Heimdal	*2	0.0	0.0	0.0	Sigyn	60.00 %	2.0	2.3	4.3
Huldra	19.88%	0.4	1.8	2.2	Skarv	36.17%	30.5	23.4	53.9
Kristin	55.30 %	11.1	10.8	21.9	Marulk	50.00 %	2.6	9.2	11.8
Kvitebjørn	39.55 %	18.9	52.1	71.0	Total partner-operated		61.4	106.3	167.7
Mikkel	43.97%	6.7	9.5	16.2	Total production		599.2	644.8	1244.0
Morvin	64.00%	15.7	8.1	23.8
Niord	20.00 %	0.0	0.0	0.0	*1 Grane 36,66% Svalin 57,0%
Norne	*3	22.3	2.6	24.9	*2 Statoil share of the reservoir and production at Heimdal is 19,87 %. The ownershare of
Hyme	35.00 %	0.0	0.0	0.0	*3 Norne 39.10%, Urd 63.95%, Skuld 63.95%
Oseberg	$*4$	63.0	26.2	89.2	*4 Oseberg 49.3%, Tune 50.0%
Sleipner	*5	18.8	51.8	70.6	*5 Sleipner Vest 58.35%, Sleipner Øst 59.60%, Gungne 62.00%
Snorre	*6	31.6	$-0.1$	31.6	*6 Snorre changed ownershare 01.01.2014 from 33,32% to 33,28%
Snøhvit	36.79%	10.0	40.6	50.6	01.01.2014: Oil: 32.23%
Statfjord	*7	25.0	12.0	37.0	*7 Statfiord Unit 44.34%, Statfiord Nord 21.88%, Statfiord Øst 31.69%, Sygna 30.71%
Tordis	41.50%	6.5	0.2	6.7	*8 Ormen Lange changed ownershare 01.07.2013 from 28,9169% to 25.342%
Troll Gass	30.58%		185.9	185.9
Troll Olie	30.58%	52.6		52.6
Tyrihans	58.84 %	41.4	7.6	49.0
Vega	24.00 %	9.3	6.8	16.1
Veslefrikk	18.00 %	2.2	0.7	2.9
Vigdis	41.50%	18.3	0.4	18.7
Visund	53.20%	20.9	13.9	34.8
Volve	59.60 %	7.6	0.6	8.3
Åsgard	34.57 %	43.4	61.2	104.6
Yttergryta	45.75%	1.5	3.9	5.4
Total Statoil-operated		537.9'	538.5	1076.3

DPI & DPNA 1Q 2014 Statoil Equity Production per Field

Development and Production International (DPI) Produced equity volumes - Statoil share
1000 boed	Statoil share	Liquids	Gas	Total
ACG	8.56 %	55.3		55.3
Agbami	20.21 %	49.1		49.1
Alba	17.00 %	2.7		2.7
Dalia	23.33 %	37.0		37.0
Gimboa	20.00 %	1.6		1.6
Girassol	23.33 %	23.1		23.1
In Amenas	45.90 %	19.6		19.6
In Salah	31.85 %		40.3	40.3
Jupiter	30.00 %		0.1	0.1
Kharyaga	30.00 %	9.6		9.6
Kizomba A	13.33 %	12.6		12.6
Kizomba B	13.33 %	12.4		12.4
Kizomba Satellites	13.33 %	6.6		6.6
Mabruk	12.50 %			0.0
Marimba	13.33 %	1.7		1.7
Mondo	13.33 %	4.6		4.6
Murzug	10.00 %	5.4		5.4
Pazflor	23.33 %	49.8		49.8
Peregrino	60.00%	41.1		41.1
Petrocedeño*	9.68%	11.2		11.2
PSVM	13.33 %	20.9		20.9
Rosa	23.33 %	14.8		14.8
Saxi Batuque	13.33 %	7.4		7.4
Shah Deniz**	25.50 %	12.6	40.9	53.5
DPI production 1014		399.1	81.3	4804

DPNA			Produced equity volumes - Statoil share
1000 boed	Statoil share	Liquids	Gas	Total
Marcellus*	Varies	10.1	119.2	129.3
Bakken*	Varies	44.9	4.5	49.4
Eagle Ford*	Varies	18.0	13.0	31.0
Tahiti	25.00 %	15.9	1.1	17.0
Leismer Demo	60.00 %	8.4	0.0	8.4
Terra Nova	23.55 %	7.2	0.0	7.2
Hibernia	15.00 %	6.6	0.0	6.6
Caesar Tonga	5.00 %	3.7	0.5	4.2
$Zia**$	35.00 %
Spiderman	18.33 %
Total Equity production from fields in DPNA		114.8	138.3	253.1
* Statoil's actual working interest can vary depending on wells and area.
** Currently shut-in due to flowline issues.

Exploration Statoil group

Exploration Expenses		First quarter
(in NOK billion)	2014	2013
Exploration Expenditure (Activity)	4.7	5.1
Capitalised Exploration	(1.8)	(2.0)
Expensed from Previous Years	0.4	0.0
Impairment/Reversal of Impairment	0.4	0.0
Exploration Expenses IFRS	3.7	3.1
Items Impacting	(0.4)	0.0
Exploration Expenses Adjusted	3.3	3.1

Exploration Expenses	First quarter
(in NOK billion)	2014	2013
Norway	1.8	0.9
International	1.9	2.2
Exploration Expenses IFRS	3.7	3.1

Sensitivities1)– Indicative effects on 2014 results

Indicative PSA and royalty effects

Indicative PSA effect

(mmboe/d)

Assumed oil price 2014

Indicative royalty effect USA and Canada (mboe/d)

Reconciliation of Adjusted Earnings to Net Operating Income

Items impacting net operating income		First quarter
(in NOK billion)	2014	2013
Net operating income	51.4	38.0
Total revenues and other income	(5.7)	(0.8)
Change in Fair Value of derivatives	0.2	1.4
Periodisation of inventory hedging effect	(0.1)	0.2
Over/Underlift	(0.0)	(0.1)
Other Adjustments	(2.8)	0.0
Gain/loss on sale of assets	(1.8)	0.0
Eliminations	(1.1)	(2.3)
Purchases [net of inventory variation]	0.3	(0.2)
Operational Storage effects	0.3	(0.2)
Operating expenses	(0.1)	5.4
Over/Underlift	(0.1)	(0.3)
Other Adjustments	0.0	0.7
Gain/loss on sale of assets	(0.0)	0.1
Provisions	0.0	4.9
Depreciation, amortisation and impairment	(0.2)	0.0
Reversal of Impairment	(0.2)	0.0
Exploration expenses	0.4	0.0
Impairment	0.4	0.0
Sum of adjustments	(5.4)	4.4
Adjusted earnings	46.0	42.4

Forward looking statements

This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as "ambition", "continue", "could", "estimate", "expect", "focus", "likely", "may", "outlook", "plan", "strategy", "will", "guidance" and similar expressions to identify forward-looking statements. All statements other than statements of historical fact, including, among others, statements regarding future financial position, results of operations and cash flows; changes in the fair value of derivatives; future financial ratios and information; future financial or operational portfolio or performance; future market position and conditions; business strategy; growth strategy; future impact of accounting policy judgments; sales, trading and market strategies; research and development initiatives and strategy; market outlook and future economic projections and assumptions; competitive position; projected regularity and performance levels; expectations related to our recent transactions and projects, such as the Rosneft cooperation, developments at Johan Sverdrup, the Wintershall agreement, the Ormen Lange redetermination, the farming down of interests in Mozambique and the sale of producing assets in the Gulf of Mexico; completion and results of acquisitions, disposals and other contractual arrangements; reserve information; future margins; projected returns; future levels, timing or development of capacity, reserves or resources; future decline of mature fields; planned maintenance (and the effects thereof); oil and gas production forecasts and reporting; domestic and international growth, expectations and development of production, projects, pipelines or resources; estimates related to production and development levels and dates; operational expectations, estimates, schedules and costs; exploration and development activities, plans and expectations; projections and expectations for upstream and downstream activities; oil, gas, alternative fuel and energy prices; oil, gas, alternative fuel and energy supply and demand; natural gas contract prices; timing of gas off-take; technological innovation, implementation, position and expectations; projected operational costs or savings; projected unit of production cost; our ability to create or improve value; future sources of financing; exploration and project development expenditure; effectiveness of our internal policies and plans; our ability to manage our risk exposure; our liquidity levels and management; estimated or future liabilities, obligations or expenses and how such liabilities, obligations and expenses are structured; expected impact of currency and interest rate fluctuations; expectations related to contractual or financial counterparties; capital expenditure estimates and expectations; projected outcome, objectives of management for future operations; impact of PSA effects; projected impact or timing of administrative or governmental rules, standards, decisions, standards or laws (including taxation laws); estimated costs of removal and abandonment; estimated lease payments, gas transport commitments and future impact of legal proceedings are forward-looking statements. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risks described above in "Risk update".

These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including levels of industry product supply, demand and pricing; price and availability of alternative fuels; currency exchange rate and interest rate fluctuations; the political and economic policies of Norway and other oil-producing countries; EU directives; general economic conditions; political and social stability and economic growth in relevant areas of the world; the sovereign debt situation in Europe; global political events and actions, including war, terrorism and sanctions; security breaches; situation in Ukraine; changes or uncertainty in or non-compliance with laws and governmental regulations; the timing of bringing new fields on stream; an inability to exploit growth or investment opportunities; material differences from reserves estimates; unsuccessful drilling; an inability to find and develop reserves; ineffectiveness of crisis management systems; adverse changes in tax regimes; the development and use of new technology; geological or technical difficulties; operational problems; operator error; inadequate insurance coverage; the lack of necessary transportation infrastructure when a field is in a remote location and other transportation problems; the actions of competitors; the actions of field partners; the actions of governments (including the Norwegian state as majority shareholder); counterparty defaults; natural disasters and adverse weather conditions, climate change, and other changes to business conditions; an inability to attract and retain personnel; relevant governmental approvals (including in relation to the agreement with Wintershall); industrial actions by workers and other factors discussed elsewhere in this report. Additional information, including information on factors that may affect Statoil's business, is contained in Statoil's Annual Report on Form 20-F for the year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission, which can be found on Statoil's website at www.statoil.com.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this report, either to make them conform to actual results or changes in our expectations.

Investor Relations in Statoil

Main Desk: +47 22 97 20 42

E-mail: irpost@statoil.com

Investor Relations Europe

Hilde Merete Nafstad	Senior Vice President	hnaf@statoil.com	+47 95 78 39 11
Lars Valdresbråten	IR Officer	lava@statoil.com	+47 40 28 17 89
Erik Gonder	IR Officer	ergon@statoil.com	+47 99 56 26 11
Gudmund Hartveit	IR Officer	guhar@statoil.com	+47 97 15 95 36
Mirza Koristovic	IR Officer	mirk@statoil.com	+47 93 87 05 25
Madeleine Lærdal	IR Officer	madlar@statoil.com	+47 90 52 50 53
Kristin Allison	IR Assistant	krall@statoil.com	+47 91 00 78 16
Marius Javier Sandnes	IR Assistant	mjsan@statoil.com	+47 90 15 50 93

Investor Relations USA & Canada

Morten Sven Johannessen Vice President	mosvejo@statoil.com	+1 203 570 2524
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