Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Statoil ASA (NYSE:STO)

Exploration Seminar Call

May 24, 2012 07:00 ET

Executives

Hilde Nafstad – Head of Investor Relations

Tim Dodson – Executive Vice President, Exploration

Pal Haremo – Senior Vice President, Global New Ventures

Nick Alan Maden – Senior Vice President, Exploration International

Gro Gunleiksrud Haatvedt – Senior Vice President, Exploration Norway

Erik Finnstrom – Senior Vice President, Exploration North America

Analysts

Marc Kofler – Macquarie

Teodor Nilsen – Swedbank First

Trond Omdal – Arctic Securities

Haythem Rashed – Morgan Stanley

David Mirzai – SG

Nick Coleman – Argus Media

Neill Morton – Berenberg

Jason Kenney – Santander

Nitin Sharma – JPMorgan

Hootan Yazhari – Bank of America/Merrill Lynch

Andrew Stuttaford – ABG Sundal Collier

Peter Hutton – RBC

Hilde Nafstad – Head of Investor Relations

Good afternoon, ladies and gentlemen and welcome to today’s Exploration Seminar arranged by Statoil. Before we start, let me say that there are no fire drills planned for today. In case the fire alarm goes off, you will need to exit through the market exits and gather on the outside.

Today, Statoil’s Executive Vice President, Tim Dodson and his management team will present exploration strategy for Statoil recent results and regional work. Following a presentation from Tim Dodson, we will have presentations by the Senior Vice Presidents, Pal Haremo and Nicholas Alan Maden. After Q&A session, we will then take a short break. After the break, the Senior Vice Presidents, Erik Finnstrom and Gro Gunleiksrud Haatvedt will present, again followed by another Q&A session. Erling Vagnes is unfortunately ill and will therefore not present today as previously announced.

Please note that questions can be posted by means of telephone only not directly from the web. The dial-in numbers for posting questions can be found on the website. All the presentations are published on statoil.com. I currently ask you to make special note of the information regarding forward-looking statements, which is attached to the presentations.

It is now my privilege to introduce Statoil’s Executive Vice President for Exploration, Mr. Tim Dodson. Please.

Tim Dodson – Executive Vice President, Exploration

Thank you, (Hilda) and good afternoon and good morning to everyone wherever you might be. And welcome to Statoil’s exploration seminar and I guess we couldn’t have picked a much better day, a little bit fortunate with that, but that's how it is sometimes. Luck does play some part in exploration, but hopefully as we will be able to demonstrate to you through the next three hours is not only about luck.

And of course what I am thinking about is the updated information on the Pao de Acucar discovery in the Campos basin in Brazil. We issued a press release at 12 o’clock as do the operator Repsol, where we have communicated significant upgrade in volumes for the pre-salt discovery in the Campos basin. And as you have probably seen, we are now communicating volumes of more than 700 million barrels recoverable of light oil and 3 TCF of gas. And for those of you who need a conversion fact of that, so you can multiply by 180 to get barrels of oil equivalents. So, this in itself is a joint discovery, more than 1 billion barrels, very significant in itself, but as stated also in the press release, very important for our position otherwise in Brazil. And we think also very important for the acreage, which we picked up in the Angola, the pre-salt acreage which we picked up there at the end of 2011.

Our plan was and still is with this seminar to give you some more insight to dig deeper behind the successful exploration program, which we have run over the last year and a half, tried to explain to you what we do and why we do it, what things are important for us. So, that hopefully through this afternoon, you will understand more about our strategy, more about why we have had the success we had. And hopefully I can build even more trust and confidence in our ability to deliver similar kind of success in the future.

You are all familiar with the updated corporate strategy and hopefully you will recognize that one of the most important or one of the important building blocks on this is to develop a leading global exploration company. As I mentioned to many of you before, that this part or this chapter of the exploration story really started about three years ago. When I was asked to take over the responsibility for the global exploration unit in Statoil, we quickly made a decision that we should revisit our strategy. We should thoroughly examine what we had been doing, what others were doing, and then make a conclusion as to whether we need to change how we were doing things. That strategy was approved at the end of 2009 and subsequently implemented. I’ll come back to that.

Then on 1st of January 2011, year and a half ago, there was a major reorganization of the company and the decision was made for exploration to have a seat on the Executive Committee of Statoil. I was asked to take on that position. I was very glad to accept. And that was also one of the elements, which we’ve drawn up in the strategy that we – it would probably be beneficial for us to have one exploration unit rather than have three. Previously, we had a separate unit for Norway. We had a separate unit for the international exploration. We had a separate technical unit. And I think what it has allowed us to do it’s allowed us at least to prioritize in a truly global fashion.

And then I think the third element is obviously the recent successes. It doesn’t hurt to have early success. And we have had quite a lot of that over the last few years probably significantly more than we expected, i.e., more larger, finds quicker than we expected. We now have six high impact discoveries, of which two, are joint discoveries, i.e., more than a billion barrels of oil equivalent on a 100% basis, the onsite drip and now Pao. We have also secured significant new acreage positions and I’ll return specifically to the deal we did with Rosneft a little bit later in my talk. And I think we have strengthened our position, our core positions, i.e., in Norway and Gulf of Mexico quite substantially over the last 18 months too.

None of this is possible without strong HSE performance. We have had a good development when it comes to our HSE statistics, the one which is shown on the left is all serious incident frequency, i.e., the number of serious incidents we have per million man hours worked. And as you say that the level now is around about one eye, one incident per million nine years worked on all of our operations whether it be exploration, development, or production. Having excellent HSE results and I am thinking about all of the aspects, but especially about safety and the environment aspects. They are prerequisite and our license to operate wherever it might be. It also helps us to become a preferred partner and by that I mean maybe also in the operator, which others choose to work with and it definitely does give us a competitive advantage.

Exploration is involved in many aspects and of HSE many types of operations, but in particular the seismic and exploration drilling operations. My exploration unit has responsibility or accountability for all seismic acquisition in Statoil be it exploration, development, or production purposes. We become a strong well portfolio. Of course, so we are the first to test the different areas that means that we know typically less when we go into these areas than we do on the Norwegian shelf or places like the Gulf of Mexico.

So, we have to be able to take very good care or we need to have to be prepared for all eventualities. And I can say to you that the exploration statistics, these are the core positions I’ll show, the exploration statistics over the last two years are equally as good as what we have done in the corporate.

As you know from our global footprint, we have different challenges we are facing. Physical challenges like ultra deepwater I mentioned 2,800 meters of water depth on Pao, similar in Tanzania, similar in Gulf of Mexico. In other places, you can add to that the challenge of seasonable icebergs, things like seasonal icebergs like in the – of the Northeast Coast of Canada. You can add small margins, high pressure, high temperature conditions, Gulf of Mexico just about every well you drill is very challenging for that respect. King Lear, another we – you all know about the King Lear well in the south of the North Sea.

And then more recently, we also have to handle other issues like the threat of piracy of the eastern coast of Africa and that threat is real. I am not going to the details, but there are lot of evidence that there is the piracy activity is it’s there, it’s real, and it’s active all the way down through East African coast. So, we don’t only have to maintain, but we have to continue to focus and improve on this. And the reason for that is that we have to be ready for even more demanding challenges going forward. In the Arctic especially, we have acreage in Alaska. We have acreage offshore Northeast Canada, but also of the north board known the Beaufort Sea and not least now with the position we have picked up with Rosneft offshore Russia both in the Barents Sea and the Sea of Okhotsk, where ice is also a challenge. So, this is our license to operate and it’s something that we have to – continue focus on day-in, day-out.

I think I can safely say that we have delivered on our exploration strategy. And our exploration strategy is really quite simple is about three things, is about early access at scale, is about drilling more high-impact wells, and it’s about exploiting our core positions. Early access at scale is the kind it says itself, but it’s really enabling larger acreage uptake at lower cost. Yes, maybe some more risk, but at the same time also potentially more reward, and ideally if you get in early, you should be able to do this at lower cost, although as you are probably aware, there is a huge and maybe ever increasing global competition for exploration acreage.

And then high-impact wells, when we did our strategy work in 2009, we kind of concluded that sort of we weren’t making very many high-impact discoveries if any over the last few years. When we started digging into this, we said well, it wasn’t really surprising, because we weren’t drilling hardly any high-impact wells either. And these are normally somewhat higher risk. You don’t find high-impact or don’t make high-impact discoveries on every other well. I guess, we have the last 18 months, but that’s not normal. The chance of success here is more likely to be one in five or one in six and it doesn’t mean if you drill five, you make one discovery or if you drill six, you make discovery, sometimes, you have to drill 10 or more in order to do that.

And of course the reason we do this is to find higher volumes, but also to be exposed for the outlays, the ones with the really high potential. And if we think back over the last year what kind of surprises that we had? And I think the one big, big positive surprise for everyone was onsite. It was off-scale compared to what we expect and what anyone else expected. It was a much, much better reservoir than we thought everything was better. So, but – if you don’t take that kind of risk and you don’t get exposed for that kind of upside, Pao is really the same. It’s really the same, better reservoir quality and much larger hydrocarbon column than we envisaged and in fact a more favorable oil type even though associated with gas than we are there to envisage. And then the third point about exploiting core positions and on our total year before, this is all about maintaining or establishing robust portfolios in highly prolific oil and gas basins. Norway is obviously one of those. The Gulf of Mexico is obviously another. And I think we can safely say that we recognized from before that Angola is and Brazil I hadn’t added to the list, but I think I could probably add Brazil as a core exploration position for us to the fore which are noted here and Canada is, I guess, is already there, we have made a couple of discoveries and we have established a very significant acreage portfolio here.

So, that's what we mean by exploiting core positions. And the importance of this is sort of if you make a breakthrough discovery like we've done in Tanzania, Eni and Anadarko have done in Mozambique and hopefully getting BG and Tanzania as well. I think we just see what often it can lead to. It doesn’t lead to those single opportunities at least to a multitude of opportunities not necessarily in the same – same category – size category, but opening up this new place is one of the key things we do in exploration. And of course results have been very good six high-impact discoveries and as we speak we are drilling two or three more, where we expect we have to announce the results by the end of the second quarter. So, I think we can say we successfully implemented our strategy and we plan to stick with this and my team will tell me more and outline how we positioned that to deliver more. So, we think we are doing well.

What do others think? Well, they think we are doing pretty well as – pretty good as well. If we look back and this was part of the work we did with the expiration strategy we look back to the period of 2006 to 2008. We actually weren’t doing too bad on volumes, but most of the volumes were related – most volumes were Norwegian volumes. There is nothing wrong with that of course, but most of them were also related to near-field exploration. We drilled up a whole bunch of near-field prospects, because our production hubs needed more oil and gas and of course these are also high value barrels.

So, if you study this chart, basically what it’s saying in different blue colors here and just before I go too much further just to point out that the two graphs here, the one on the left and the right they are IHS statistics and the one in middle is from (restart) energy, the one related to value creation. But if I just go to the left hand and the right hand figures, then the blue colors here is probably little bit difficult to read the legend, the darkest blue is discoveries greater than 500 million barrels. And as you can see in the period from 2006 to 2008, Statoil had no exposure to any discoveries greater than 500 million barrels. Even though in that period, we did find close to 2 billion barrels and it’s a three-year period just to point out that of oil and gas.

If we now then look at the equivalent numbers for the period of 2010 to 2012 year-to-date, we have moved up the lead table and now in second place behind Eni. And what we can see here that about 50% of the volumes, which we discovered in this period are now coming from discoveries greater than 500 million – 500 million barrels. And that is because we had drilled more high-impact prospects. It’s not as simple as that, but it’s not far from it. So, that it was a clear step in our strategy was to expose ourselves from more of these opportunities we have and we succeeded as you can see from this.

It’s not only about volume, it’s also about value and at least according to (restart), then we were top of the pack in 2011. They have estimated that we created somewhere around US$5 billion of value for – through exploration in 2011. So, I think based on this we can say that we are on the way to become a leading exploration company. And then some of you might say well it looks like you are the leading exploration company or at least close to it. I am not satisfied that we are there yet. I think we still have to prove that we can replicate the success which we have had over the last 18 months. Then we can talk. But we’ve definitely stepped up our exploration performance and last year or on a fairly regular basis I have shared with you the importance of having a robust resource base. I think going back a year, year and a half, we communicated that we had a risk resource base around about 6 billion barrels of oil equivalent.

For every year, we drilled somewhere around 40 wells, then we will drill up fairly large share of that resource base. Last year, we drilled up 800 million barrels. It’s the small box in red, 800 million barrels of risk resource. Fortunately, we found 1.2. So, we actually found more than we expected to find from the wells we drilled last year. Notwithstanding if we hadn’t replenished our portfolio with new opportunities then we would have actually be closer to 5 billion barrels in risk resources than six. But again, we have replenished our portfolio and we have added new prospects in 2011 which sum up to 900 million barrels.

So, in essence, we found 1.2 billion barrels in 2011 and we still have the same risk resource base as we did prior to that drilling activity. If we then try to look forward a little bit, I have already mentioned and go to the graph on the right, in 2011, we drilled 41 wells and we proved up 1.170 billion barrels of oil equivalents, it says 1.2 on the chart just be exact here. In 2012, year-to-date, we have already proved up 600 million barrels of oil equivalents and we expect to deliver at least and there is a P90 number on here and you can just translate, because at least 800 million barrels in 2011. And maybe – maybe are there to use the word probably, significantly more since the upgrade for Pao, which we got today is not included in these numbers.

And then I think as we move forward and what we have tried to illustrate here is the uncertainty, but also the magnitude of the volumes or you can expect from exploration in Statoil in years going forward. There is a large degree of uncertainty as shown from the P90 to P10 ranges on the columns here. On the other hand, I think you can see that the portfolio which we already have and planned to drill up in 2013 or ‘14 both of those years they have the potential to prove up somewhere between 1 billion and 1.5 billion barrels of new resources.

When it comes to our activity this year, we drilled 41 wells last year. The latest I have on 2012 is approximately 45 wells and the reason for that is that we drill more wells this year due to the recent successes, follow-up wells like Lavani and sidetracks on King Lear and where we have accessed and gone immediately to the drilling stage like in Ghana and the Hickory prospect, which we are drilling there. So, our guiding going forward is approximately 40 wells per year and an exploration spend of $3 billion per year.

Let me then turn to other recent events and the strategic corporation agreement we entered into with Rosneft. This is obviously playing to the first point in our strategy early access at scale, more than a 100,000 square kilometers of perspective from tier acreage split between Okhotsk Sea in the far Eastern part of Russia and in the Northern Barents Sea. And on the middle slide you can see we have overlaid the three licenses, the Okhotsk Sea, the North Sea and basically this acreage – this combined acreage here covers most of the – most of the North Sea. So, this is truly scale access.

The other point I think about this is it’s – this is about replenish the bucket, but this is about longer term replenishment. As you’ve also already been announced the first wells on this acreage won’t be drilled into 2016 and then we will drill on a regular basis from 2016 up until 2021 when we expect to complete our six-well commitment. It’s also an important supplement to our Arctic portfolio on the right hand side. The illustration depicts the Arctic positions, which we had from before. We can now see the blue dots, which represent here the Rosneft deal.

We are already in the detailed negotiations with Rosneft. There are many side agreements, which need to be put in place before we are finally signed off. We are now where Exxon were about a year ago on the Kara and I guess they signed off finally on the whole deal in February or March. We – as I say we are – we are already established a team to conduct the negotiations on – with Rosneft. We have about 25 people in place already and we think that’s going to take – it’s going to take something like that in order to land all these agreements. And the intention is that we have landed all of these agreements at latest by March 2013. So, watch that space.

So, what do I think about the future? Well, I think we will continue to deliver on the exploration strategy. The exploration strategy has already given significant results. I reviewed this with my team and we are convinced that we have a robust exploration strategy. So, we have no intentions on changing that. That means that we will continue to access early and at scale, acreage in prioritized basins and I am not about to tell you where all our prioritized basins are, but you start to get a pretty good feel for that I think.

We will continue to drill more high impact wells. And on the right hand side of this chart, we depicted where we expect these high-impact wells to be drilled and we expect to drill around 20 of these over the next three years and I say the overall activity level to be around 40 wells per year. We will continue to deepen the NCS and the compositions. We have two really important lease sales coming up, the Central lease sale in the Gulf of Mexico, I think, it’s 20th of June or something like that, the bids have to be in there and then the 22nd round, which we expect to be announced before the summer with an application deadline in the autumn.

We’ve already communicated new drilling campaigns in Skrugard, four wells there to be drilled 2012, 2013, three wells in offshore Canada, and as already explained to some of you before the meeting here we are well underway with a huge 3D seismic survey over our blocks in Angola that’s progressing according to plan that means we are almost 50% complete on that.

I say in addition to building on existing core positions then you have sort of – we intent to establish more. We feel we are already there on Angola and Canada and it wouldn’t surprise me that during 2012 that we can add both East Africa and Brazil to that list and thereby laid the basis for future production clusters in Statoil. But one of the most important things for us to do is one of the most difficult thing has to do that is to maintain the portfolio of high-impact wells.

In order to do that, we just replace everyone we drill. We must replenish our resource base and our acreage portfolio. With that, I’ll leave the floor to Pal Haremo, he is a Senior Vice President for global new ventures and he will tell you more about his activities, which are primarily related to accessing large scale opportunities around the globe. Thank you very much.

Pal Haremo – Senior Vice President, Global New Ventures

Good afternoon. My mission today is to convince you on how and why Statoil work globally to secure access to new attractive acreage? And as Tim pointed out in his introduction, early access at scale is one of the three main elements in Staoil’s exploration strategy.

So, I will try to take you a bit into the geology and the subsurface first and how we then define new opportunities and then preferably before others. In Statoil, we have defined a very ambitious goal that we always will have the best geological maps in our prioritized area, especially. And by this we think that we can do – we can identify the best opportunities before others and that’s a very big competitive advantage of course. The main element in this work is to work systematically, generally to establish regional databases and to produce the sweet spot maps within the basin, so that we can locate really the best part of the basins. But of course, it’s not only about subsurface, we have to shop – show entrepreneurialship in our work, so that’s a very important, also very important part of Iraq.

Local presence is another keyword that we have been worked a lot with lately. At present in my unit, we are present in 7 other cities around the world, for instance, in Calgary, in Houston, in Venezuela, in Moscow, in Jakarta, in Beijing. And this is to be closer to where the business is ongoing and to the people that have the local knowledge. So, we are stepping up activities like this to come closer to the opportunities and to establish relationships with the authorities, with partners, and competitors. Creativity and new degeneration is of course also very important part of the systematic screening for opportunities.

And last but not least, I will also mention the need for prioritization, because there are a lot of opportunities out there and we really need to maybe the best tool we have to especially when we go into the high-risk basins is to compare the basin in between each other.

I picked out this map to illustrate how we work. This is what we call automatic map, which is very global and what it shows it’s how we think that petroleum system, the best petroleum systems are distributed globally. So, this went up now over more fundamental maps and we really use it before we take decisions in which basin to enter. And as you can see the new entries we have done they are located in Arctic, Western Arctic and in the Russian Artic in West Africa and Ghana in South America in Suriname and in Indonesia and in all these regions we think we have a very strong petroleum system.

I want to take you even a bit further. I want to use this opportunity to show another example on how we work super in a way and across continents to identify new opportunities. As you may know, the earth consists of a set of relatively thin crystal plates that through geological time has moved horizontally. There are basically three types of such plates, these divergent plates that go away from each other is convergent plates that come together and its plates that go alongside. And this is a very important geological process. The maximum horizontal speed for instance in these plates is about 3 centimeters per years, that means about 30 kilometer in a million year and in the scale of 100 million years, but that can be talking about when we do business. In fact, we have talking about 3,000 kilometer, so things moves geologically a lot.

This map shows the Southern Atlantic region. If you can recognize it here, about 180 million years ago, and here you can see the countries, we can recognize the countries of Africa to the right and South America to the left and it’s stunning to see how easy, recognizable, the government – the images that we know from present day can be recognized in this map.

This continent we can see here was called the Pangea that is we think it existed – models tells us it existed about 180 million years ago. And well, we call it a supercontinent, because this was most of the landmass on the globe at that time. If you focus in a bit on these border zone here, we can see that – this stage about 180 million years ago, there was a depression in this area in the border zone between the later Africa and South America. And we think this is a clue to prospectivity. In these depressions there, we think is ideal conditions for deposition of source rock and establishment of rich petroleum systems.

So, when we work – when we work systematically, regionally, we try to reconstruct the geological history in different basin and try to fitting together and then stand how things develop to locate the most interesting areas. If we now start the videogame, we can observe that about 175 million years ago, Antarctica and North America started to move away from this supercontinent. And at about 130 million years ago, then Africa and South America started to move away from each other. And then we have the Southern Atlantic opening during a period of 100 million years were the areas that earlier was together now separated with more than 3,000 kilometers.

Just as to end up there the video which is very fancy at least I think. It’s about understanding the geological history and to try to find analogies between the different basins and the link as in this case for instance between the basins we have here in the Sierra Leone, Ghana area towards French Guiana and Suriname area on the South American side and the same between the Brazilian side and the African side here in Angola. And of course, then apply this into the business and where we pickup acreage.

So, I’ll try to go a bit back to the business again. After trying to convince new on whole much, it is for exploration is to work systematically, to understand the subsurface. I will focus more on the early access at scale again. The reason access to new acreage is so important in over exploration strategy is the realization that we for years were not able to replace our reserves. We need to step up our new venture activities and we need to secure both high quality acreage fortnightly. Orphan does not come very cheaply, but also on quick moves and early enter into frontier, into frontier and explore higher risk basins, where it is cheap and where there could be exit options before we have to take the major investments.

This map illustrates what we have achieved the last 18 months. Totally, the access acreage represents acreage addition of about 70,000 square kilometers net to Statoil. Most of it is in frontier basins. We have accessed nine new basins in seven countries of which two represent new country entries for Statoil and that is Suriname in Latin America and Ghana in West Africa. In the Arctic, we have accessed the Beaufort Sea and the Orphan basin in Canada, the East Baffin Bay basin in Greenland, and the Barents Sea and Okhotsk Sea in Russia. In this Southern Atlantic, we have accessed the Guiana basin in Suriname, the Kwanza basin in Angola and the Ivory Coast basin in Ghana. And in the Far East, we have accessed the Kutai Basin and the Bintuni Basin in Indonesia.

Establishment of new partnerships is as I said very important part of exploration strategy. As present over preferred partnership is companies that have strong local competence and have proven a strong exploration record in each of the regions we are working in. So, in the Arctic Canada, Chevron is our chosen partner. In West Greenland, it’s Cairn. In Russia as you know, it’s we have negotiated an agreement with Rosneft. In Suriname, Tullow is our preferred partner. In Ghana, it is Amerada Hess. And in Angola, their preferred partner is Sonangol. In Indonesia, we also have selected a small local company called Niko petroleum as our preferred partner and it’s first of all based of the record in the different basins.

My last slide shows Statoil has managed to grow over exploration portfolio in the last year, last year and a half or about 20,000 square kilometers. The left column, blue column here shows Statoil net acreage at the end of 2010 and it was about 130,000 square kilometers. The red column here shows that we have relinquished a lot of acreage that we have explored and I found less attractive that counts for about 50,000 square kilometers. The green column shows what you have accessed – that we have accessed about 70,000 square kilometers on new prospective mainly frontier acreage during the last 18 months. And the last column to the right here shows the status as of today, we have a net acreage of about – exploration acreage of about 150,000 square kilometers. This scale of access represents a major step up for Statoil, but it is vital for us for our ambition for resource replacement and to become a leading exploration company. You can expect that this aggressive access trend will continue also in the years to come.

Thank you. And I will give it over to Nick.

Nick Alan Maden – Senior Vice President, Exploration International

Good afternoon. I am going to talk about Statoil’s international portfolio and activities. By international in Statoil, I mean everything outside of Norway and North America. North America, be the U.S. and Canada. So, it’s everything else the rest of the world such the big bucket.

Going to pitch up here at the front of the Ocean Rig Poseidon, this was the rig that we are using to drill in Tanzania at the moment. This is a picture taken while it was drilling the Zafarani well, which is our big gas discovery there. It’s about 5 TCF of gas. And it’s currently now drilling the Lavani and so we are keeping our fingers crossed on that one. It’s represents in some ways a very important milestone for Statoil. The Zafarani well is actually really our first big international operated discovery, where we entered the license beginning the exploration phase. We have had a big discovery and it’s of the size that hopefully should drive us towards commerciality. So, it really is proving ourselves as an international company and that really is the theme of my talk. This is really has been quite a game changing time for Statoil internationally from the exploration position. We are doing a lot more activity now both operated and non-operated and we are having success and some of the impact discoveries that Tim talks about have been made into the international arena. So, we will see how that translates over the years into a growing and developing international position, lovely picture here, beautiful day, it was actually taken on the helicopter, I was travelling out on, and nice flat calm seas, which is good, so I do to get seasick.

Okay. Map of the world, we are going to talk about our activity. We are going to fly around the world. So, we are going to see an awful lot of dots dotted around, put your seatbelts on. Exits are here and there and get ready to takeoff and let’s go and have a good travel. Going to start in bottom right hand corner, Indonesia, as Pal has already alluded we are being building a big position there. It’s a massive area. Indonesia is the size of a continent, lots of basins, lots of opportunities, and it’s a very open licensing system. So, we’ve been building the big acreage position there. This year, we were actually participating in four wells doing three operated drills. We have completed the first two and there will be a third one later on this year and then we are going to drill a non-operated well, I think Eni is going to operate that towards the back end of the year.

We are currently also choosing lot of seismic. We’ve picked up a lot of blocks over the last year or so. So, we are shooting seismic. On these seismic, we will hopefully – hope is to evaluate the blocks some we will increase because we don’t like the prospectively. But some of them, we hope to bring forward again. We think these the sort of opportunities that will bring these big impact discoveries in. A lot of the basins we are going into in Indonesia are more frontier basins haven’t had a lot of exploration. So, we are looking at big features, big potential. And so, we are hoping us we will evaluate this – this will impact the drilling programs is going to have know for the next couple of years.

That’s Indonesia, that’s the starting point there, jump across the Indian Ocean now in Mozambique. We’ve had a license there for some time. We just complete the seismic program at the back end of last year who are evaluating that seismic this year, and we are hoping that this will lead to a drilling program next year and the year afterwards. We are really excited about the block, it’s the south of the big gas discoveries there is not on the same places – gas discoveries there. We are actually targeting oil on this book. That’s what we are out for aiming for in this one. So, we are hoping that’s what we are doing this year will help us drill next year. So, that’s an area that’s going to be of interest was perhaps in the forum like this next year.

Jumping over, Greenland, we took a position last year in Greenland we show and then we formed into the Cairn acreage in the same basin and the P2 license that was completed at the beginning of this year. We are going to shoot seismic, sorry, the short seismic on the P2 license last year and we’re shooting seismic on the shale acreage this year. We are going to evaluate that acreage and we are hoping that will lead to a drilling program in 2014. Again this is an area where we pick the big basin and we try to pick the best acreage in the basin, the acreage though really test whether it will work. This is a basin that hasn’t been drilled before in Greenland. So, this is our chance to look at a big opportunity and if we like it, go for it, and test it where we think it’s the best place to be.

We are going to drop south now who are backing in South America, we are spinning around the world here collecting air miles as we go and we are in Suriname now, this was a farm in that we did again at the end of last year, this is with Tullow. We particularly picked Tullow, because they have been successful on the African side and from every other plates came together that Pal showed and they have picked up equivalent acreage there and they have actually had a discovery in French Guiana along trend from that. So, we partnered with Tullow there. We are going to shoot seismic this year. We will evaluate that seismic and then we will make a decision as to whether prospectivity is something you want to drill later on probably in about 2014 if that works out.

Jumping across the other side of the margin, these were next to each other at one stage. We participate in that with joint Amerada Hess and we are actually drilling a well as we speak keeping our fingers crossed there. We are chasing a different play here in terms of a reservoir and a trap that is being drilled successfully on that – in that area, but it’s a similar source rock system. So, the oil and the gas has come out from the same basis, but we are aiming for a different reservoir and different play, that well is ongoing, keeping fingers crossed, and hopefully we will hear something in the next few weeks or months or so.

Going to come across Africa now and we are into the red dot areas, these are – these sort of purplish colored ones are average that I am going to talk a bit more detail on further into the program. So, we are just going to introduce them here and then we are going to dive a little bit deeper as we go further into presentation. This is Tanzania we have had the Zafarani discovery at the beginning of this year. As I’ve already said, good discovery that is really upon running in the area, BG as well as being having success here and there is a Tanzania is now discovering quite a lot of gas, I think chasing these neighbors, Mozambique is first as you can. We recognized that in some ways, lot of gas being found here, there is a rates developing among the companies involved to get the gas commercialized into market.

So, we set a project team already covering all the disciplines from commercial to field development to every sort of area of the process so that we can run quickly and fast trying to get as project commercialized as quickly as possible and to help in that process, we’ve gone straight on to drill another exploration well as the Lavani well and that’s drilling now and again hopefully in the next few weeks, we’ll get the answer from that well. But we are optimistic that every time in exploration, you get optimistic and you think what you are doing. Nature has a good way of coming back and teaching you otherwise, but we are hopeful at this stage.

And then leaping across Africa back into West Africa, I’m going to talk a little bit about the Kwanza licenses in Angola, important bit of the aspect there is how they relate to what we found in Brazil, again closed the Atlantic backup. We’ve had success in the Brazilian side that just being announced today that was very, very close to the licenses we had over the quite on the Angolan side. So, we see how that relates and that changes what we believe is the risk in this area quite considerably.

I’m going to talk a little bit about well we are going to drill later on the summer in the Faeroes. This is a big play opening well. It’s a relatively high-risk areas one of the probably more higher risk wells we are going to drill this year. But it’s an area where we dominate on acreage. As Pal talk about early access at scale, we have the early access there, we have the scale, we have the prospectivity. If this works, this will be substantial.

And then finally, the area that I am finishing with here on this slide, which is what I am going to talk about next is obviously Brazil following the press announcement we had today and it’s obviously something that’s making all of us smile and we are happy three discoveries on the block and we are now happy to work out, how we are going to take it for, what appraisal we are going to do.

The challenge really for quite a few of these areas, where we are looking forward to drilling programs is always going to be rig access and that is a challenge for the industry. So, the ultimate timing of when things will get drilled is always a little bit up in the air at the moment, because it’s – it is bit of a challenge. The strength that we have got to in international is that previously we had smaller positions. So, we are looking for single slots on weeks, which are hard to do. We are now getting to the point in East and West Africa, where we can put together a big program and that putting together a big program enables us to go out and talk to contractors and sell them a project that they can get interested in, involved in, and gives us a better chance of securing the rig capacity that will enable us to complete our program.

So, straightaway, let’s get into what it actually means to us. This is a breakthrough position for Statoil. Three of the impact discoveries of the six that Tim talked about are internationally, the other three are in Norway, but three international is with the start of the process that we really transformed the company over the coming decade. In Brazil, last year, we had the Peregrino well. In fact, it was a satellite or step along from the original Peregrino field, a good discovery there. But it will tie-in easily into our existing infrastructure there, extend the field life, extend the plateau life, and be readily developable. We have already passed that project through into the development and production group and that’s study in looking at the ways to take it forward. So, we expect a very quick process there to get that project through to sanction.

I’ll jump to the bottom, because that’s the – that was – we are doing use of a time sequence that’s the Zafarani well that has been completed, very good got us up and running there, different positions, something we can build from, and then obviously the press announcement that’s going to have today on the Pao de Acucar in Brazil. So, it’s greater than 250 million barrels when these slides went to press on Tuesday. We still hadn’t got all the approvals in place to go with the press announcement. So, as to say, it is updated, it’s greater than a billion barrels across the three structures as oil equivalent and about 700 million barrels of liquid. So, very good on that side. So, remember this slide is a couple of days old and we are bit more forward running now

So, we go into the next page, Brazil itself, what does it actually mean? There has been a lot of big recoveries in Brazil over the last few years and it’s always been in essentially the Santos Basin, which is a little bit further south and these are the big discoveries that you’ve heard about with Petrobras and people like BG. What’s really good about this one here, this is the first time that a pre-salt, which is the same play that’s been drilling in the Campos basin – in Santos basin. This is the first time it’s being discovered this far north and in a new basin at this sort of size and scale. And it’s taken us three real attempts, three wells we have drilled to actually start to unlock it. It’s a classic exploration thing. You never quite get it right first time. You have to learn a little bit come back. So, we drilled in 2009. We drilled the Seat well, which you can see on the cross section is on the left hand side. We drilled the Seat well and we found oil, but we really didn’t find reservoirs. We are a little bit disappointed without, but we looked and learned and we went back and we have drilled the Gávea well. And we found more reservoir this time and some oil and then finally we got the whole thing right by the time we come back to the third well and we have drilled the Pao well. So, we built our learning up on the space and the majority of the reserves that we have announced in the press release today come from the Pao well, but the learning that we have developed along makes us realize that we probably haven’t sighted the original Gávea wells and the Seat wells in the right location. So, we’ve taken the data we have got back from Pao and the other two wells and we are rebuilding our knowledge base on this and helping understand those two previous wells, those two previous discoveries, and then we are looking at the appraisal options that we go forward. So, we will have to drill appraisal wells on both Seat, Gávea, and Pao. So, we are looking at three more appraisal wells at least.

That timing of that will depend on when we finalize our plans and our ability to secure a rig, but it’s really, really a positive impact that we started to build our knowledge in this pre-salt area, because the importance is that when we closed back at the Atlantic, this takes us into Angola where we are going to be exploring in a few years’ time and building that knowledge in this one area will help us explore more efficiently in the other area. And this is why it is as Pal has already alluded to, when we close up the Atlantic, we see them side-by-side. On the left hand side, on the Brazilian waters as they are now, you see the left hand picture you see Gávea, Seat, and Pao. And then what you see to the right of that in orange is the acreage that we have just acquired in the Kwanza license. And then to the right of that, there has been two wells drilled already, Cameia well and the Azul well, which have again proven oil in that pre-salt play.

So, when we look at the acreage, this massive acreage position, we’ve picked up in Kwanza, where the risk going into it, one of the risk we are looking at, was does this play actually work? Well, we have now got three wells or actually five wells actually dotted all around it, north, south, east, and west that actually show this play does work. So, when we are looking at this area here, we have taken the play risk out, we know it works. So, going forward, our challenge now is to look at the individual prospects and the risks associated with the prospects, but the actual play itself has worked. So, even in six months, we’ll have to actually specifically doing that in the activity on these licenses since we awarded them in terms of evaluating the whole risk profile has already changed. That’s really, really positive.

Then just a couple of cross sections to show how basically all looks alike and that’s the important thing getting there. Taking the knowledge from Brazil, plan into Angola and repeating that success. And what we have got there in Angola is a dominant acreage position. So, we need moving forward to the next stage of the valuation. We signed the license at the end of last year and within a week we actually had started the acquisition of the seismic program. This is a multi-client seismic program. It’s in the area shown in the red on the map to the right hand side, so it covers our blocks and some other company’s blocks and then we operate two other licenses, the ones in the darker blue 38, 39, and then the one in – the three in the striped, 22, 40, and 25 are non-operated licenses. The operator in those cases are Total and Repsol. So, we have already started shooting the seismic and this will help us actually evaluate the prospects. We have previous prospects that we are showing on our operator licenses. These are big features. We don’t really – we don’t have any doubts they exist. The whole object of the seismic here is to confirm the actual size, but more importantly with what we have learnt in Brazil have to correctly place the wells. So, this is what will happen with this seismic as we start acquiring, it’s been nearly 50% complete. As we bring it in, we’ll evaluate it, look at it, and really start to understand the individual prospects and how we can better exploit it. We target in our first well towards the end of next year beginning 2014. So, it’s subject to when we get a rig, but we are really excited about this and the risk profile here has really substantially changed.

Going to jump in for second area of success and this is Tanzania. The left hand map shows the individual licenses, the colors there, the red block, red blob is actually the Zafarani discovery, the orange blob is actually the Lavani prospects we are drilling, and the yellow blobs are three other prospects that we see on the overall license. I have only shown the prospects that exist on the 3D data that we have on the license. We see here that the white box is actually the area of the 3D.

Following success of Zafarani, we are moving to Lavani, but we’ve also agreed with our partners here, Exxon is going out and shoot additional seismic. So, the remaining license to the left of the current seismic grade and to the right hand block outline here, which ballpark the same license. We are going to shoot seismic on those. We believe the same prospectivity we’ve seen in our three-day resist to the other areas of well. So, this is a great area for us to build the significant position, the significant inventory, and ultimately find a lot of reserves.

You can see the relationship of our block in Tanzania. This BG have been drilling to the south and they have got a number of discoveries here. They are drilling to the north and they have got a number of discoveries here. And then there are the big Mozambique discoveries there. This is an area of really growing activity, really growing interest, and really growing opportunities and we are right in the middle of it, which is great. With – as I said, we’ve already get a team together to move things forward. We are drilling the Lavani well. We are evaluating our appraisal options. We are planning to use seismic, great inventory to follow on. This is an area we are going to see a lot of activity, a lot of aggression, a lot of movement in the coming year.

Just this is for the geologists in the room, this is for when you go to bed at night and dream about. This is what I dream about. This is what it’s all about. These are couple of size – three seismic images here, the one on the left hand side is from the Zafarani structure, the top one is the Lavani structure that we are drilling and then bottom one is the seismic line that ties the two features. What’s great about exploring in this area is the seismic actually starts to see the gas that you are drilling for.

And what particularly happens here is that what makes this so really good is that the structures themselves, they are almost a bit like a spirit level and the gas in it is a bit like a bubble and it always finds the horizontal, always finds the flat. And what we actually feel, what we’ve seen here which makes it fairly unique, oops, is you can see the flat events. I get the right bond. We see these flat events coming across. This is actually where the gas is sat on the water. This is the bubble in the spirit level. And when you see this, it really starts to encourage you that your confidence should be high. So, we drill this on Zafarani and proved that it works. We are drilling this on Lavani now and we see these flat events.

So, it gives us a lot of confidence, we are going to be successful, but every time you have the confident, nature comes back and bite. So, let’s not, in England we say it, let’s not count the chickens before the eggs have hatched, we’ve got to drill this to find out. But we really are optimistic. The technology is working and we’ve been able to calibrate with the wells we’ve got. So, fingers crossed and we’ll have a good discovery.

Then the last sort of impact well that we are going to drill this year within international is in the fair allowance was particularly interesting, there is a two stage or three stage thing is that the map on the left hand side shows our acreage position in the Faeroes with a blue. We really dominated. We are the major license holder and it is a great acreage position to be here. On the right hand side, you can see the UK area of the Faroe-Shetland basin and there’s already a lot of hydrocarbons being discovered there.

There hasn’t been a lot of hydrocarbons being discovered on the Faroe side and the – and the only thing being seven wells drilled, the reason that there hasn’t been a lot of wells drilled there and is that this area is an area, where it’s under what was old volcanic vessels. And the problem that made was that you really couldn’t image in the seismic, you just got a lot of noise on the seismic and we’ve been working this for years and years and years and years working with contractors, and we’ve now got the point where we are getting a reasonable seismic image, not the best, not comparable to say Tanzania, but we are giving a good enough seismic image. And so for the first time ever, we are starting – we can really start to see structure. We can really start to see what you’re wanting to target.

So, we are going to go out and drill this well this year. We are waiting for the rig to finish up the current operations in Norway. And then once that finished, it will transfer to the Faeroes have been right amongst the time and then we will drill this well. And we are drilling really big structure and its first time that was being drilled out. It were really started to get confident that we’ve seen something that we can drill. And then if this works because the other risks coming to play then is the reservoir areas of charge there, but we know the reservoir in charges on the UK side. So, we’ve got a good chance coming here. So, is it come together in the right mix well, if it does and we have a discovery here, we have the acreage position is probably six or seven of the structures, this slide is to be drilled.

So in the success case, we can really get often running here. We can really dominate. And we see this play has been a dominantly gas place.

So, that’s the last impact, well we are going to drill this year. So, looking forward a little bit, what are we trying to do? We are trying to create materiality. We are trying to create value through exploration. In international that means big acreage positions, big structures, trying to get prospects that when you are successful they really moved the company’s needle, really replenishment to the country. And that’s what we’ve got here. So, the purple blobs are the basins that are the high basin areas with high – we believe high potential. And that’s what we are evaluating and hopefully we’ll be drilling wells on them in the coming years.

And then the purple ones are where we see high impact exploration wells to be drilled over the next two to three years. So, we’ve got a good position, good set of acreage, good set of opportunities, three discoveries to our name already that make an impact to us and I am sure many more to come. You are going to see a real transformation of Statoil over the next 10 to 15 years. Thank you.

Hilde Nafstad – Head of Investor Relations

Thanks Nick. Now, Tim, Paul and Nick will take questions from the audience and over the telephone. I first ask the operator to please explain the procedure for posting question over the telephone. Operator, please go ahead.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions)

Hilde Nafstad

We’ll start out with the audience here in Oslo. There will be microphones passed and I will ask you to please state your name and who you represent. I can see it’s one over there.

Unidentified Analyst

First of all, congratulations on the announcement today. So, one question on this, not only is a big odd resources, but it’s probably one of the biggest gas discoveries you’ve done. So, is that likely it will be a solution, where it’s sold domestically? So, that’s question one. Second question, you are currently drilling a well offshore, Cuba, and I noticed it wasn’t on your map. Is that because is the high-risk, low probability well and if the – depending on the result will you plan further wells on that? And the third question on Iraq, which of course has not only the third largest official proven results, but likely the highest – yet to find potential. You recently pull out on the service contracts. There is exploration around in south coming up and of course Exxon have moved into Kurdistan. So, does that that Iraq is not really on your map?

Tim Dodson

Okay. Actually just that maybe Nick takes the Pao and the Cuba and then I’ll come back on Iraq. So Nick?

Nick Alan Maden

Pao, yes, there is a large volume of gas. I’ll say we are very early in the valuation phase and certainly from a development option side. It is a significant volume. The sort of initial feeling probably in the early stage of a development, it will be used for reinjection and pressure support, but ultimately we would be looking for some commercial solutions that it is the size that we think you could generate a commercial solution. But as to whether it is domestic core export, it’s really too early to say. Then the Cuba well, the operator has announced that the well is a dry hole, part of this is left off the dots is I’ll say a North American influence of the maps. It is the – it was the one well we are obligated to drill. It has been a dry hole. We will take results that looking it and see whether that means will continue on or not our decision has been made on that, but it has been announced as a dry hole.

Tim Dodson

Okay. Then on Iraq as you are aware then we decided to pull out the venture with Lukoil. We failed to see any significant upside on that and that’s also the reason for us to make a decision not to participate in the upcoming exploration round. I think as Pal alluded to has got nothing to do with the subsurface. It’s got everything to do with what’s above the surface and in particular the fiscal terms and conditions that type of contract which we have there. Now, you mentioned Kurdistan as well and of course we are watching that space very closely. We think that I think we have seen the activity increase, so we could strongly believe it has big yet defined potential as well. The interesting thing about Kurdistan is that it has a completely different terms and conditions. There is a big government take. So, for that reason, it’s something that we are considering about that, but not more than that at this point in time.

Hilde Nafstad

Yes.

Marc Kofler – Macquarie

Hi, there. It’s Marc Kofler from Macquarie. I just had a quick question on the – two questions, firstly on the overarching sort of exploration strategy and just thinking about the key drivers of that in the coming few years, we are seeing that the opportunities had is quite deep. I was just wondering now particularly on the high impact wells if you fill that rig capacity is potentially sort of one of the main issues perhaps driving that forward or indeed if there is sufficient desire internally to raise the exploration budget from around that $3 billion number that you’ve given? And then secondly just in terms of your position in Mozambique relative to the other areas where you are, where you have early entry because there you have quite a high equity interest there at this stage. I was wondering if there was any likelihood potentially of farming down that equity ahead of a drilling in 2013, and indeed if there had already been any interest? Thanks.

Tim Dodson

Okay, I’ll take the last one first and I think it’s probably Nick to take the rig one. Mozambique, we – we have found that process ongoing and we are waiting for government approval for that. So, we can’t announce although, several of you have asked already who we are – who we expect that was a partner there, but the answer – so then the answer is yes, that we will certainly almost farm down before we drill a Mozambique. Nick, you will take the rig one?

Nick Alan Maden

I mean, the reality is yes. The rig issue is going to be a challenge, not just for us to the whole industry. What’s I think is where we are getting better in international is because we are building a sizable position. We can go out for a multi-year contract for rigs that we can use close together. So, the traffic deposition with success we are going to need drill lot of wells with what we are taking in Angola on a success base there. You are going to need to drill a lot of wells. So, for the first time ever, we’d be able to put together a multi-year program and that multi-year program means that when we are talking to rig contractors they want to talk – rig contractors and the current market don’t want to talk to you on single well opportunities. But it is going to be a challenge. That success brings that challenge and we’ve got the same challenge in Brazil, where Repsol is the operator. We’ve not got to try and secure a rig for the appraisal program. And I am sure in certain areas we are going to achieve the timelines we want to and in the areas we are going to struggle.

Hilde Nafstad

Next question please.

Teodor Nilsen – Swedbank First

Teodor Nilsen, Swedbank First. As Nick correctly pointed out, you are focusing on (indiscernible) areas globally and spread wide around. Could you say a little bit around the consideration, why you don’t focus on, let’s say, two to three areas compared to like it says seven or six basis we are now focusing on?

Unidentified Company Speaker

I think I can let Pal take that one.

Pal Haremo

Yeah. If you are thinking about the frontier look or strategy with the access at scale, we think that we have a strategy that we need to do this at scale that means several areas, because the risk is so high. So, our expectation is fact is that you don’t know where, but we expect to make one or two high-impact to have successes on new one or two of these basins. So, that’s in reality, it won’t be that big spread, but it’s so difficult to tell today where the success will come. So, what’s why we go out very broadly in the new frontier basins. You don’t think simply that our target can be reached by only focusing on our existing core basins.

Unidentified Company Speaker

Could I just add to that a little bit, because sometimes is this – is a question that gets asked internally as well? It looks like we are everywhere, we are not. I don’t know how many countries are on the world, I guess that changes almost on a daily basis, but it’s more than 200, I think we represented in somewhere about 20 countries on an exploration basis, 15 is it, here you go, so it’s even less, including Norway. And what we have actually done although, we – for obvious reasons, competitive reasons, we don’t share with you. We have a number of globally prioritized basins. And we have 18, so we have 18 basins if you remember the map that Pal showed you earlier on with all the different basin outlined the green, I don’t know how many that was on their pool, but I don’t know?

Unidentified Company Speaker

That’s close to 100.

Unidentified Company Speaker

100 something like that. We have picked 18 to those and that’s where we primarily, I say, primarily focus our efforts and try to gain material access. We might and of course that’s a dynamic process as all those drilled wells have failures, have successes we might take one or two of those away and that one or two more, but that’s how we work. We start all the way out here, close it down and then say for the time being 18 prioritized basins for us which is, in this process that’s what we think it needs to be, because not all of those were succeeded or we won’t succeed in all of those.

Hilde Nafstad

Do we have any further questions in the audience in Oslo? No, yes one more from Trond.

Trond Omdal – Arctic Securities

Thank you. Trond Omdal, Arctic Securities again. There is an election in Mexico and for many years, a lot of companies have hoped that one day ultimately the Mexican side will be hoped and Statoil has a technical corporation for years with Pemex, do you see any likelihood that this will be opened and Statoil still have some activity together with Pemex?

Unidentified Company Speaker

You are right. We have had this technical corporation. I think it’s fair to say that Mexico is still on our radar screen. We are monitoring what’s happening ther. Unfortunate it doesn’t seem like they are opening up what we considered to be the best exploration opportunities so far as mostly being about proven resources. And we have selected not to consider those, but we would if the right opportunities are opened up in Mexico be interested is part of the greater Gulf of Mexico which is highly prolific, do we expect that to extend into parts of Mexican shelf as well.

Hilde Nafstad

Right, then we will move on to the telephone audience. I will take the first question from Haythem Rashed with Morgan Stanley. Please go ahead Haythem.

Haythem Rashed – Morgan Stanley

Hi, thank you Hilde and thank you gentlemen for the presentations. I have a couple of quick questions if I may. Firstly, I just wanted to ask if you could provide a little more color about the forward plans on Pão de Açúcar. You’ve previously indicated that you would be looking to drill a follow-up sort of appraisal later on in the year. I wondered if with the announcements today whether you would be looking to bring those drilling plans forward and are you restricted effectively by rig access, is that sort of the limiting factor there or is it sort of a conscious decision to wait until the end of the year?

The second question I had was just with regards to the steady state resource life that you sort of see as suitable for Statoil. And what I mean by that is really just sort of the 6 billion barrels of risk resource that you talk about in the presentation whether that’s something that you would like to see sort of going forward whether actually there is a sort of targets of a higher number in mind or what your thinking is around there, that would be very helpful? And then just finally a very quick one on slide five of Tim’s presentation, Tim just wanted to clarify the 2010 to 2012 discoveries, does that include Pão de Açúcar in any form or shape there? Thank you.

Unidentified Company Speaker

Okay. Well, I am thinking about the two other ones. I’ll let Nick go on to the Pao on the appraisal part.

Nick Alan Maden

It’s pretty much always as I’ve already said it really is going to be the timing of it’s going to be rig driven. The partnership is very aligned as to what we see on the three structures and Pao in particular from a subsurface point of view. We are working together very closely on that. And that size of discovery means we really want to get after rates as quickly as possible. The limit in fact is going to be rigs. So, we’ll keep working it in parallel and we will start chasing rigs and then it really is as fast as we can secure a rig for that program. We will be looking at a multi-slot program, because we will see that we’ll need multiple wells to confirm this. But the exact timing as yet we really can’t answer.

Haythem Rashed – Morgan Stanley

Okay.

Nick Alan Maden

Okay. I can on the – just a clarification on the figure the 2010 to 2012 year-to-date doesn’t – it doesn’t include the upgrade on the Pao. As Nick pointed out, these slides were made two or three days ago, so that we want to limit each to include, so there is a fairly significant upside on that number already.

On the resource life, Pal might want to put me a little bit on this, but I think 6 billion barrels is not more than it needs to be. If we plan to drill up 40 wells a year and let’s say that somewhere between 15 and 20 million barrels a year of risk resource like it was in 2011. I think it was a 800 something like that, that gives us a lifetime of that resource base of about eight years. And eight years is typically the time it takes to – from making a discovery to production for big discovery, so that every year we are potentially drilling out about 15%, 12% to 15% of our resource base.

And so that if you look forward or so we indicate some good numbers for 13% or 14%, they are good from the point of view of having a lot of volume potential, a lot of potential to prove up new resources. But for every 800 million barrels we drill out, we have to replace it, because that’s the stuff we are going to be needing to drill in 2018 and ‘19 and ‘20 and that kind of puts the Rosneft deal into perspective. That’s why it’s so important to just keep refilling just like sort of the bucket with a small hole in the bottom. It runs out in the bottom and then you just have to keep filling up in the top and is relentless you just cannot stop any company, who means anything serious about exploration must never stop replenishing that portfolio. That’s why it’s so incredibly important to work that Pal and his team do on the global new ventures in securing these new, medium to longer term opportunities.

Haythem Rashed – Morgan Stanley

Great, thank you.

Operator

We’ll take the next question from David Mirzai with SG. Go ahead please, David.

David Mirzai – SG

Hi, couple of questions on next slides, please. First on slide 5, Angola petroleum system, would the key rigs actually be diverse of our characteristics given what you discovered over in the Brazilian side and the different reservoir characteristics depend on where you’ve drilled the well. And how would you interpret that the reservoir moves to changes throughout changes as you move away from those control points in the Angolan side? And then just secondly on the Tanzania seismic slide 8, what would cause false positives on those (indiscernible). Can you give us some idea of what could be causing them other than a gas effect? Thanks.

Nick Alan Maden

Okay. Reservoir is a key aspect and it is something that from the Brazilian side that we do find that it varies. So, the object here is to recognize where the rocks are developed as a reservoir and where they are not. And from that, there is a reasonable correlation between the seismic pattern that it gives as to whether it is a reservoir rock or not, so you get a correlation between the two. So, once we have shot the seismic on the Angolan side, what we will be looking for within the closures is the relative seismic patterns and by trying to correlate the seismic pattern that works from a reservoir side and seismic pattern that doesn’t will help us locate the well.

And that’s one of the learnings that we say we are going to have to see it, where we found the oil in the section, but it really wasn’t developed in good enough quality reservoir. And then we found we got – when we drilled the follow on well in Gavea, we started to find some of the reservoirs. We found some with the oil, but we also find reservoirs that are deep in the section at water end. So, we got a good correlation between what was the reservoir there in the seismic. So, then when we are finally came to drill Pao, we would drill in the right position understanding, where the reservoir was predicting it ahead of drilling it and found it. So, that knowledge that we got there will transfer to Angola. So, that really was one of the risks that we started to unravel, but when we get the seismic and we’ll answer that.

David Mirzai – SG

In terms of the difference, you will be thinking about the reservoir characteristics, the diagenesis or secondary things like frac in that make these changes in the reservoir, this variability?

Nick Alan Maden

It really is the main porosity. There was always some fracturing in the reservoirs, but that’s – doesn’t really give you the volume, it’s identifying the reservoir with porosity. And that has given you a different seismic signature and now we are starting to unravel that seismic section. We can predict the reservoir has big porosity and we are looking at big numbers here in the porosity side.

David Mirzai – SG

Brilliant, thanks.

Nick Alan Maden

Can I just add to that without sharing too much information, I can at least confirm that the nature of the reservoir, the pre-salt reservoir on Pao is significantly different from the nature of the pre-salt reservoir in the Santos Basin at least in the pre-salt. And I don’t think I will go further in that, but for those who sort of don’t really understand what Nick might be talking about in terms of character, it’s on some places you have stripe seismic package and it works on other places who can have a stripe seismic package and it doesn’t. In other places, you can have an almost transparent, chaotic, seismic character that works. In other places, it doesn’t. It’s that simple and it’s that difficult? If it was easy, we would have always tied and gone home a long time ago. For the false one on Tanzania is that when the structure fills that with gas, it gives certain response. If it leaks off, you leave residual gas behind. So, the risk here is that we are seeing residual gas or natural gas. So, that’s the risk coming in.

David Mirzai – SG

Great. Thanks gents.

Hilde Nafstad

The next question comes from Nick Coleman with Argus Media. Go ahead please. Thank you.

Nick Coleman – Argus Media

Hi, thanks for the presentation. I’d like to just if possible draw your attention back to the Norwegian shelf and the question of costs of exploration drilling and particularly at the Barents Sea, are you able to say give a cost of drilling of well in the Barents Sea and how it compares with the North Sea in terms of the numbers there. And of course, the question is kind of driven by the idea that presumably costs are exploring in these sort of far northern waters, maybe more costly for you both in the Barents or elsewhere in the world. So, what are your thoughts on how Statoil copes with the rising cost, especially in the expensive country like Norway? Thanks.

Nick Alan Maden

I’ll give you a quick answer to this one. Of course we come back to Norway after the break. On the Norwegian Barents Sea, the part of the Barents Sea was opened at the moment then the costs are more or less, more or less the same as they are elsewhere on the Norwegian shelf. And then I’d like to remind you that it’s very cost efficient to explore in Norway, because the tax plan here is helps to pay us of a large part of the exploration builds, but the wells in the Barents Sea are not particularly cost, where you have seen there was on (indiscernible) hobbies. We completed those in just over a month. So, they are relatively, I said relatively cheap, there are no cheap exploration wells offshore, but so relatively inexpensive compared to our other wells which are around the world.

Nick Coleman – Argus Media

Okay, thank you.

Hilde Nafstad

We have one more question from Neill Morton with Berenberg. Please go ahead, Neil.

Neill Morton – Berenberg

Thank you, Hilde. Couple of questions actually. The first was just I am trying to get my head roamed, how you actually think about ranking your high impact wells. Do you look at your drill ready portfolio and simply rank it and some happen to be high impact and others aren’t or do you actually sort of separate them out and say well, these are the high impact wells. We are going to prioritize those perhaps one in five of every wells we chose going to be high impact. I just wanted to have a clear idea of how you think in terms of just our risk profile? And then just secondly sticking again I guess on sort of HSE, we have seen in recent months a fairly significant share price actions with well incidence whether that’s in the (indiscernible) in Brazil, Elgin in the North Sea. Has this incidence given you any post for thought in sort of drilling technically difficult wells? King Lear you mentioned was high temperature, high pressure? Thank you.

Tim Dodson

Okay. What I’d like to suggest you is question that the Pal very briefly talks about our ranking process on the basins before we get to (indiscernible), but whereas Nick can talk to that and then I’ll speak to the HSE part. So, Pal, if we can be brief both – all of us.

Pal Haremo

We tried to, as I said earlier, we tried to work very systematic and it’s very important with this prioritization and the start point in a way is that we start to rank basins we look globally and try to rank all the basins. And there are three elements in this ranking, firstly, it’s a subsurface quality and that means the PGs, the probability for making this converse and the volume potential for that typical prospect in these basins. But on top of that, we also combine, we are putting in commercial terms in the different basin and contrast to see how competitive that, how we can rank that, and at the end, we also include political issues, technology issues, strategic issues. So, that it ends up in these 18 basins that Tim mentioned earlier and this kind of prioritization we take with us when we then go into the well prioritization process, then we put after the basin prioritization process. So, that’s linked. So Nick, you can…

Nick Alan Maden

On the well side, we looked at this as a portfolio basis. So, in any one particular year, we try to have a mix of risks from low-risk wells to high-risk wells. So, when you are exploring on the portfolio, you are wanting to consistently find reserves at one end, but to expose yourself to upside at the other end. So, you are going to take some high-risk in, but you’ve got a balance that against low-risk. So, balance is what we are after here and then down on to any individual prospects you compare any two other prospects, and it could be cost, it can be value, it can be the risk, it can be reserves, it can be the upside. And so, there isn’t a simple mathematical equation. It really is comparing and trying overall in the 40 wells you are exposing yourself, give yourself the best chance for achieving the reserves that you are looking for on an annual basis. Do you want to add to that?

Tim Dodson

No, it’s hopefully fine. Then I think on the HSE side, yes, we are aware of the consequences and that’s why I deliberately included a slide on the HSE and how important it is for us, because it not only affects our share price in a worst case scenario, it could be both our license to operate both in that country, but also potentially sort of the – substantially sort of question to our ability to operate and even our existence as a company. I mean, that is the sort of worst case. So, our focus on the HSE, there are lot of elements, but priority number one is always to avoid major accidents, major accident is related to exploration drilling is obviously a well that comes out of control.

And then it’s easy to think that the wells with the most risk are the ones in the deepest water and the ones with highest pressure, intuitively yes, but every single exploration well we drill whether it be high pressure, high temperature, ultra-deepwater, or shallow water sort of Johan Sverdrup or Skrugard or something like this are treated in exactly the same way. And you have to do that because you never know entirely sort of where you will get a surprise and you need to be able to handle sort of the unforeseen on every single well on every single well location, which we drill. So, I think vigilance on this is extremely important. And it’s one of the reasons why we can’t rush into any single exploration well. We have to convince ourselves before we start these wells that we have planned them as thoroughly as we need to in order to mitigate the risk to the extent, which is possible before drilling. So, this is absolutely number one on our agenda, its number one. So, every time we discuss, every time we meet my team, we are talking about HSE and what the main risks are going forward.

Neill Morton – Berenberg

Okay, great. Thank you.

Operator

We have a couple of more questions. The first one comes from Jason Kenney with Santander. Please go ahead, Jason.

Jason Kenney – Santander

Hi, there. Just a point of clarification really on the Campos Basin resources, I think the numbers that I mentioned this morning are just that resources 700 million barrels of oil, 3 trillion cubic feet of resource. What kind of recovery rates are you anticipating there and how does the numbers that have been released by Repsol today compared to your greater than 250 million BOE guidance that’s you had on announcement of your Q1 results?

Tim Dodson

I think I can do it fairly quickly. I think the recovery rate on the oil is 30%. I take a little bit, I don’t need to qualify, I can probably check that in the break, but I think that’s so – it’s reasonable – it’s not overoptimistic, I don’t think we are giving the light quality of the well. I don’t know what the assumption is on the gas it’s probably somewhere 60%, 70% for associated gas. I would think relative to the 250 well at that point in time what we were able and allow to communicate was greater than 250 million barrels. And as I say that doesn’t really tell you whether it’s 251 or 400, so we are going back a couple of months, but it’s first now once we have done sort of we’ve worked all the data from the well done, the post well analysis that we are able to come up with a more specific estimate. And I think so, they had we known initially right after the completion of the well, there was – it was these kind of numbers that we would obviously communicated these numbers. So, I think we have seen considerable upside as we have analyzed the data which we got from the well and from the test.

Jason Kenney – Santander

Okay, thanks.

Hilde Nafstad

Next question comes from Nitin Sharma with JPMorgan. Please Nitin.

Nitin Sharma – JPMorgan

Hi, afternoon. A couple of questions. First one, Tim on your presentation slide five, you compared the discoveries 2006, 2008 but what you have delivered recent past, i.e., ‘010, ‘012. How do you compare value creation of 2011 versus what your previous results for delivering in terms of near-term field drilling versus higher risk, high reward strategy that you are following now? And moving on to question number two, how has that impacted the results that you are targeting now, i.e., what sort of resource targets do you now have for your segment versus what you had when you started on this path? Thank you.

Tim Dodson

Okay. On the – I haven’t got a very good answer for you on three quarters on the value creation, because I am not actually aware apart from WoodMac of anyone actually attempting to measure value. I don’t think the (indiscernible), I don’t actually know whether it existed at that point in time. They may have done, but I am actually – don’t have those numbers. We’ve also just recently, I guess over the last couple of years, started to measure value creation. I think probably what you would find is that on a per barrel basis that the volumes in Norway come out quite favorably, but I think the overall number sort of the – the kind of sort of the size of the value, the $5 billion would be very difficult to achieve on Norwegian portfolio alone – and of course the other point being is that we couldn’t possibly drill up the same type of portfolio, the same number of wells in Norway as we can from a combined Norwegian and global portfolio at least for not very long period of time.

And then I am not quite sure what the second question was about, but I think one of the important things and I think Nick has already alluded to is that we have been drilling what I call a much more balanced portfolio of wells each year. We now have a larger portion of high-impact wells than we did before, but we have a very healthy spread between high-impact high-risk wells via typically frontier growth wells and then ILX wells. And I think Nick has already alluded to it that was the way we will be attempting to setup our portfolios going forward. So, that when we sit down every year and consider our yearly drilling programs having a balanced portfolio is one of the important issues. It mitigates the risk of not proving up enough volumes. So that’s how we will address it going forward.

Nitin Sharma – JPMorgan

Thank you.

Hilde Nafstad

And then just a last question before the break, Hootan Yazhari from Bank of America/Merrill Lynch.

Hootan Yazhari – Bank of America/Merrill Lynch

Hi, there gentlemen. This is a really quick question regarding how you are thinking about exploration within the overall CapEx program going forward from here. Obviously, the company is in a 10-year ramp up phase now with production and you have pretty aggressive production targets till the end of the decade. How do you see your exploration budget maybe on a per barrel basis going forward from here? Are you comfortable with the proportion that you have now? Would you like to see CapEx per BOE increasing for exploration, is that something the company has got it or is this something you feel you can take a bit more of a rest on given the significant successes that you’ve had over the last 18 months?

Tim Dodson

Okay, I think and the way you’ve been guiding, way we have been guiding the way we continue to guide this around about $3 billion on exploration. And if you look at the activity level, which we prognosed for 2013 and ‘14 is about the same. Wells are typically about 60% of our exploration cost. So, if we continue to drill about the same amount of wells, we would continue to drill about, but we will continue to spend about the same amount of money on wells going forward. I think in terms of spending even more we are probably punching or have been punching a little bit above our weight, spending a little bit more than some of our competitors, although there are strong indications that many of the larger companies at least intend to spend even more on exploration than they have been recently.

I think in order to spend significantly more than $3 billion then you have to have the quality in the portfolio. And I think it’s – I think what we tried – we demonstrated already today is already a huge, huge challenge just to get to where we are at and then to replenish and maintain that kind of portfolio. I don’t foresee us spending significantly more than $3 billion, because I just don’t think we will be able to build and sustain that portfolio, that’s large enough and with the kind of quality, so that we were in that kind of larger spending.

And then on the final element, you talk about CapEx per barrel oil equivalent, we don’t really think about it, but just of one things we do measure on is of course is finding cost. We do our benchmarking and I guess you can do yours and obviously last year and this year, we will come out very favorably on that and we do have specific targets on finding cost and sale – or delivering well on that. So, that’s also a parameter, which we’ll use to constrain or spend.

Hootan Yazhari – Bank of America/Merrill Lynch

Understood. Thank you very much.

Tim Dodson

Okay.

Hilde Nafstad

Thank you. Then we’ll take a 10 minutes break. We will reconvene at five minutes to 3 Oslo time. Thank you.

(Break)

Hilde Nafstad – Head of Investor Relations

Welcome back everybody. We will now start our second session and the first speaker out is Gro Haatvedt, who is the Senior Vice President for Exploration Norway. Please go ahead, Gro.

Gro Gunleiksrud Haatvedt – Senior Vice President, Exploration Norway

Thank you, Hilde and good afternoon everybody. As presented by Tim earlier today, Statoil’s ambition is to be a leading exploration company by 2015. An important building block of course in this strategy is to optimize our core position on also the Norwegian Continental Shelf. And I will now give a short status on how we are positioned to reach this ambition and in addition to also contribute to the production ambition beyond 2020. I’ll just show the team out on the rig when we made the Havis discovery. It’s a great team and this was a very good start of this year.

First, try to give you an overview of the main activities on the NCS this year over exploration activities is almost as high as it was last year. And this year we will drill in total between 20 and 25 exploration appraisal wells both as an operator, as a partner. We have earlier defined three prospects as high-impact prospects. And we can startup in the Barents Sea and the Havis, which I also alluded to on the first slide. It resulted in a high-impact discovery in the beginning of this year. And then we can go to the south to the North Sea and we drilled a Crux well. This exploration well had two objectives.

First, on to test the new play in the area. The Crux prospect, which was a high-risk, high-reward opportunity and second also to test the infrastructure new prospect called Crimp. Unfortunately, we found no gas in the Crux prospect, but we are pleased with the oil discovery in the Crimp prospect. Even though over high-impact opportunity has not materialized we have delivered some valuable additional resources to the Oseberg area. Then we go to the south and it’s King Lear and that is about 20 kilometer north of Ekofisk and it’s currently ongoing and I will come back to this also in detail later in my presentation.

And other wells that I really want to name specifically is the Lovund well, it’s up on the (indiscernible) platform. We do not define this as a high impact opportunity. It also has a high risk that means that probability of finding hydrocarbon is not very high, but it has an upside and in addition it’s an important well, because in case of discovery, this could also open up an underexplored area in the Norwegian Sea. And we have 100% share in that license. It’s also very important to secure new acreage, also of course quality acreage. So, we are now working hard on the 22nd concession round and also the APA round for 2012.

In addition, we drilled also appraisal well on Skrugard and Johan Sverdrup this year. I think also we can guide on and say that about this portfolio – about 40% is infrastructure-led plus. And these also of course do not create the big headlines in the media, but they can give really valuable for Barents and also extend the lifetime of the infrastructure.

Now, I will dive more into the Skrugard licenses in less than a year in fact we have made two substantial oil discoveries, Skrugard and Havis. And we were approving up between 400 and 600 million barrels of recoverable oil. And earlier this year we also had an successful appraisal on Skrugard confirming up our estimates and also collecting very important and critical data for development planning. The Skrugard and Havis has discovers have of course renewed exploration optimism in the Barents Sea. And I also have to say that we are expecting a high degree of competition in 22nd concession round. At the same time, I am very proud of Statoil’s stayed the course and others gave up. The Skrugard area has some really interesting also follow our potential. And in the end of this year, we will launch a new ambition exploration campaign in the area, in these two production licenses which we held to – of course together with our partners. The drilling campaign comprised of four prospects you can see three of them invite here is Iskrystall, Skavl and Nunatak.

The fourth one we will decide upon in the nearest future. These four prospects we will drill back to back and we have secured rig capacity on (indiscernible) coming from Asia. And we are also doing (indiscernible) of that rig before it goes up of course and really in the Barents Sea. So, our ambition is to fulfill this drilling campaign by early summer 2013 and Nunatak is the first well to be drilled or the prospect to be drilled. So, then ket;s dive into the Nunatak prospect, that isn’t a very, very – it’s very immediate within to the Skrugard discovery. And in the Skrugard license or licenses many of the prospects have these flat spots. As also Nick have alluded now from Tanzania and these are indications of presence of hydrocarbons. And for this prospect which is in white or at the transparent white here in the map to the left and you also see on the seismic line on the right. It’s – it also have a double flat spot and this one could be in communication if it’s discovery could be in communication with Skrugard discovery. So, that’s why so important for us to test out and find if it’s really held hydrocarbons. But with the observations we have seen is quite a high probability of finding hydrocarbons here.

Then we go to a really new or the next frontier area in the Barents Sea. No wells have yet been drilled up there and that is in the hoop area. We can see it here and it’s the northernmost licenses, which has been awarded in the Barents Sea so far. And the main target here is a shallow reservoir located just 600 meter, approximately below the subsurface. And then you have the shallow reservoir is also enable us to have some excellent seismic imaging and in this particular opportunity which we see up north there. We have some also direct indications of hydrocarbons in our seismic data and you also see the map here to the right and this shows also we call it an amplitude map and this shows that it could be good hydrocarbon indicators for this structure to build.

So, we are going to drill two wells here and we are doing that in an aggressive way because you will just do it after we have finalized on the Skrugard and I can say also the obligation – license obligation is to drill the well within 2015 and we will finalize this within 2013, and have a good position up there. License to this house where we are partner within also the same area – the hoop area is circular on there, we will drill or participate together with OMV on the visiting well and that will be drilled some or a couple of months before we go to up to hoop and our license.

Then Johan Sverdrup field, I think you all know that and it’s about 140-kilometer west of Stavanger and I think making this discovery will also just remind us that the North Sea is a world-class hydrocarbon basin. And this math I’ll try to explain you, it shows in our sub-regional topography map in the Utsira area and you can see the Viking Graben to the rest there and also East Shetland Platform and then you see how the discovery is plays upon the Utsira southern part high. So, the reservoir here is superimposed on the map is kind of 3D view and it almost show the container the reservoir here where the hydrocarbon is held.

So – and it also showed the wells that has been drilled and also some of the new wells to be planned for. And it’s the kind of subtle trap with this is what we are working on these days. And to visualize this way, it also gives a better overview of the setting. This is I can also say that the warm colors here is high areas and the cold colors are the basins and that goes also for a map, which represent the reservoir level here. This is a discovery made in shallow water, it’s a shallow reservoir, and it’s also closed to shore and closed to existing infrastructure and with a very good reservoir parameters.

We are now going on with a drilling campaign in the license 265, which we are operating and we will start drilling this summer and the first one is Geitungen and that is up north here and you can also see the wells here on the seismic line. And of course if you make a discovery here, this could also add additional upside to onside volumes. The two other wells, Espevaer and Kvitsoy, they are appraisal wells and you also see how they plot then on the structural map here to the left.

We can also tell you that the reservoir here is between the yellow one that’s closed to the reservoir and the green one here is closed to the base of the reservoir. Then being in that position like us here with the giant or with the discovery of a giant oil field is of course also very important to have access and to get access to the most important acreage around it. And I think we secured two new attractive acreage in the API last year and that is PL624 to the north and PL628 to the south. And if you look at the map here, you also see that we have a very good position both as an operator, as a partner in this area and of course that is important in an area where you know so much hydrocarbon has – oil and gas has been generated through this period.

We are running also a number of projects because what we see this trap is kind of subtle, it’s not an easy trap and the nicer trap, it’s where hydrocarbons or oil and gas is being trapped. And it’s very important for us also to work more on the seismic data, the quality of the data, so that we can also use those data at the maximum also to find new opportunities in this area and also to understand better the development of the area. So, we are also then merging together 3D seismic data to try to have the same kind of quality on all the data and we are doing that from those bag area and including then the Utsira southern area. So, we shall have a very good dataset looking into other opportunities here, because we know that they are, it’s not easy to find. So, we have to use all the data and all the knowledge we have in order to really to match those opportunities out. Then I think you have already alluded to King Lear and it is a high impact prospect in the central in block 24.

The history here as you are aware of it, it’s of course that the presence of hydrocarbons in the structure has been grew back to 1989 when Saga was drilling this well 2414, which unfortunately resulted in a subsurface plot. The objective of this well now is to check out if the – or how big are the volumes and are the volumes commercial. This is the main target with this well. King Lear is the high-pressure, high-temperature well, and it requires of course HSE focus as also Tim has alluded to. I think also have got better experience in handling high-pressure, high-temperature wells both from exploration wells and field development wells like in Kristin, (indiscernible), and Gudrun. And it’s also important I think to notice that an appraisal of 2418R, which is also, you can see it here on the seismic line, it was drilled in 1994 without an HSE incident, but of course we are monitoring the well very closely and we are doing this also as a routine on oil over expiration wells.

Then I go to the Gulfax area and that is in fact a really fantastic area, when it comes to doing infrastructure land exploration. It’s – I can say yeah, the magenta color here means condensate, the green and red is oil and gas, and the green is oil. And Gulfax field, the big field was made so far back in 1978 and it was at that time approximately 2.5 billion barrels and then we had some really interesting growth prospects in the areas which of course was proven up and then we found an additional 1 billion barrels. And in the 90s, we found new discoveries there. I think up another 800 million barrels. Well, I think the important series that during the last 10 years, we have also had quite high activity here and it has added up 150 million to 200 million barrels of oil. And only last year and early this year, we made four new discoveries here and those are mentioned here on the map in this area bold.

But we are thinking about the value then it’s about 150 million and 200 million barrels so, those more smaller discoveries and then we can look at Skrugard/Havis, which has between 400 million and 600 million barrels and if you just use a simple, but I say calculation here and we can think Skrugard/Havis and it’s a 100%, but then it has a value of 300 billion to 400 billion Norwegian krones. And then you can go here say between 150 million to 200 million. It has a value of about maybe between 100 billion and 150 billion Norwegian krones. And in addition, these barrels they will also very quick put into the infrastructure because there are available capacity so, it’s really high value barrels to Statoil and to our partners and to the society.

Okay. And I try to sum-up our outlook for 2012 to 2014 and of course over aim is to create materiality and value through NCS exploration and also thereby of course contribute to the production targets for Statoil beyond 2020. And to achieve this is very important for us to rebalance our activity some portfolio to focus also much more on material growth opportunities, both in traditional, but also looking into new place. So, in more detail, our strategy really includes strong prioritization, clearly defined top areas in which we want to accelerate activity level. Then we will focus on growth in proven basin, and with proven basin, I mean the North Sea and (indiscernible) know that the petroleum system is working.

So, we will accelerate on the maturational prospects here in these established provinces for more of a short-term means. Then we have also I started not on little drill timely infrastructure that helps that means from discovery to it is in production, it should be around two years lead-time. Because then we will add value and after old value. Then of course, it’s also important to continue to explore selectively in Frontier region. So, we are taking selected tests in Frontier place like the hoop area, which I have gone through. And of course is still very important for us even with all the successes we have had to get acreage or get access to new quality acreage.

So, still it’s really important for us to push on to open up the Barents Sea east and of course the (indiscernible) area. And then we will – where we have a guidance that we will drill between 60 and 80 wells both exploration and appraisal wells during this two years period. And as I also said we have changed our footprint. We are guiding now, around 10% frontier, 50 for growth, and then 40% for the infrastructure wells. Thank you.

And then I will introduce my good colleague, Erik Finnstrom.

Erik Finnstrom – Senior Vice President, Exploration North America

Thank you, Gro. And good afternoon everybody, North America last, but not least I hope. I’d like to give you an overview of our North America position and our exploration program that we have for the next two years going forward. We have in fact in North America assembled one of the most aggressive and wide ranging exploration programs of any offshore operator in North America. So position for success yes, I think so and I hope I can convince you that is the case. Picture I have here is the discovery of Americas that is one of our two long-term contracted deepwater operated rigs in the Gulf of Mexico.

So let me start with the map of North America as a way to give you an overview. On the legend, we have the – I’m sorry I was going to do that. So, we have the – in magenta, the assets, the exploration assets that I would like to begin with, the Gulf of Mexico here, deepwater forms the core of our U.S. portfolio with about 300 exploration leases growth and a very large prospect portfolio with long-term drilling plans. We have in the north in Chukchi Sea of coast of the Alaska, an operated position with 16 operated licenses and a non-opposition with ConocoPhillips and where we have 50 position and 50 licenses there. I’d like to point out that the Chukchi Sea is shallow water.

Then, moving on in Canada, we have our position, our main and core position is in the Grand Banks area, where we have licenses in the two main or three main basins there, the Flemish Pass, the Orphan, and the Jeanne d'Arc basins. We recently did as was referred to by Pal I think a deal with Chevron, where we formed into their position in the Beaufort Sea giving us a long-term front tier position in the Canadian Arctic and we also entered their license in the Orphan which will be tested by well later this year.

So, I just quickly go to the offices basically our exploration offices are in Houston which is the center of our operations and work in the United States. Anchorage is a operational office for our coming operations offshore Alaska and in Canada, we operate our exploration from Calgary with support in the St. John’s. We – in the 2011 reorganization that was done by Statoil, we streamlined our Gulf of Mexico organization and brought together three teams that were previously working in London, Oslo, and Houston into Houston to make a much more efficient work environment. In Calgary, we have also built the capacity of the Canadian team and roughly double its size over the last 18 months.

So, Logan, Statoil’s first and hopefully not last operated discovery in the Gulf of Mexico. We have previously announced this discovery with not too much detail. I will take that a little bit further today and say that we have worked it very hard and can verify that we do have significant oil in place or STOOIP volumes. I would like to go a little bit further than that and give you some more numbers, but I can’t at this point in time, but I think we’ll be able to do that relatively soon.

If we look at the cross section on the right which gives you an overview of the discovery, we have our discovery well, but not really on the crest, but a little bit down the flank into the Paleogene and Wilcox formation. And the Wilcox is a complicated reservoir in the Gulf of Mexico. It has as much variability in this type of scale as it does if we look at the map on a scale across the basin. So, it is complicated. We need time to work it and analyze the data, but the data that we have worked, we have done carefully and that we do see that we have a superior oil quality and a very, very good reservoir in our pay zone that are in fact some of the best if not the best that have been seen in the Gulf of Mexico in the Paleogene to-date. So, this gives us confidence to go ahead and plan and propose a down dip appraisal well, which we expect to be able to drill in early 2013.

So, if I look over at the map on the left, just to put this in little bit of context, you see Logan over here down in the southeast corner of Walker Ridge protraction area. We have large Paleogene discoveries that are being developed that we are partners in Jack and St. Malo in the area and our Julia discovery with Exxon also in the same area. And we have other discoveries, both Paleogene and Paleogene here by Chevron and Neogene discoveries in the near vicinity of Logan. So, this is a very prolific area, where we have made the Logan discovery and where in the future we are actually now drilling the Bioko prospect, also Appalachian prospect.

So, what we have here with Logan is significant, proven, STOOIP and the possibility for volumes together potentially with our Bioko if this comes in to create a hub area for Statoil in future.

So, again, summarizing we target 2013 for an appraisal of Logan. We also have already kicked off a fast-track development or pre-development project on Logan working with our development group, where we are using technology, targeted technology for the Wilcox, Paleogene reservoirs that is being developed in our research center and has the code name, Crack the Paleogene. So, this would be a direct application of that research work over the next couple of years on the Logan.

So, here is a map view of our Gulf of Mexico exploration plans for the next two to three years or say two years. We will over the next two years be drilling up a high-graded portfolio of quality impact prospects. So, if we again go to the legend, you can see that our wells, the operated wells are denoted in magenta, partner in yellow. And then the symbols give you the stratigraphic reservoir targets that we will be going after.

Now, if you look at this well, you also see the blue are our license positions, our exploration license positions, which I mentioned we have about 300. If you now – you look at the pattern that we have here this forms what we call our Gulf of Mexico focus area. And we have worked hard over the last 18 months to focus our work and to define the best areas for exploration in the Gulf of Mexico as we see it. And this has actually allowed us to build a seismic database of depth image 3-D data, which is as competitive as any in the Gulf of Mexico given that we were able to focus our efforts and resources into specific areas. We have also complemented this seismic database by establishing a new in-house depth imaging center. So, we have capabilities now in-house to do seismic depth imaging on targeted projects. This imaging center has been setup with WesternGeco and is a pilot and prestige project for WesternGeco and very unique in their portfolio as well. It is personally actually followed up by the President of WesternGeco.

So, let me just walk you through the wells. We have now currently drilling two operated wells. We have the Kilchurn well being drilled up here in Northeastern Green Canyon. This is a Miocene test. We have also drilling just recently spudded, the Bioko 1 that I just – Bioko well that I just mentioned, which is a Paleogene also impact size prospect.

We have also completed in 2012 two non-op partner wells, the Heidelberg appraisal and Kakuna. And I think that we have talked about the results of these wells previously, but I’ll just quickly summarize those. The Heidelberg appraisal was the success and that it has verified the volumes that we thought were there on that particular structure. Anadarko is the operator. They did use our rig that discover Americas to drill this. And Anadarko is confident on Heidelberg that they are probably be moving head with a development.

Kakuna operated by Nexen was unfortunately dry hole. We have then coming up in our program three very exciting and high volume prospects. We have Candy Bars up here in Northern Green Canyon, followed by Coral sort of an outlier of our focus area, really outside of our focus area, but still an interesting prospect nevertheless on the Paleogene. And over in the east the Demon Star on a Jurassic age sandstone testing the same play that’s been very successful for shale in that same area. And in addition to the operated wells that we have coming up, we do have a good, I would say, very good non-op program, where we have actually done a trade with Marathon, between Kilchurn and Innsbruck. So, we traded some equity between those. Marathon will be operating that well. And that’s a Miocene test in the very prolific area of discoveries of similar prospects.

We are a high equity partner in this prospect here called Hummer Shallow that’s operated by Exxon Mobil and Exxon has that on the drill schedule we understand for late 2012. Hummer Shallow is a structural closure, which is becoming more rare in the Gulf of Mexico these days so, we are very anticipating that and that’s it’s structural closure on a Neogene type of reservoir, which has been successful in the same general area with the discoveries I showed you at Lucius and Hadrian.

So, to summarize that the program here, we are testing a very strong portfolio of impact prospects, the next couple of years and we are actually balanced across all of the type of plays that have been successful in the Gulf of Mexico to-date or that are being currently tested. We have the Miocene in Candy Bars, we have the upper Miocene, Neogene, Pliosine play in Hummer Shallow. We have the Jurassic sandstones in Demon Star and we have the Paleogene Wilcox in Bioko and Coral. So this gives us a very, very nice balance in test of all of the plays going on in the Gulf today.

So then moving to Canada, this is a variation of a map, I think that was shown earlier looking down from the north pole and it gives a nice representation of how Canada and the work we are doing in Canada is tie to the rest of the Arctic efforts in the company. So, you can see here in potentially you can see in the white or yet to find or oil potential has classified by the USGS and you can see that the Arctic basins and sub-Arctic basins have very, very high oil potential as classified by the USGS and we have taken positions in those basins in Canada.

You can see them denoted by the stars so the Beaufort Sea, which I mentioned forming with Chevron and we are have and have been building a significant portfolio in the Grand Banks area focused on the Flemish Pass Basin. So, our strategy is followed those outlined by both Tim and Pal, early access at scale getting us into these large prospect with upside potential and we are working within the Arctic initiative that’s been kicked off in the company to take synergies out of the work is being done in the other basins along the lines of environmental and stakeholder work, technology development, and operational experiences.

So, let me focus a little bit on what I would call our dominant operated positioned in the Flemish Pass. So, we have on the left a map showing our position and basically well, this is the blue color here denotes our operated position. We operate every licensed piece of land in the basin. So, we have complete control of it. We’ve recently won in the 2011 land sale of these blocks here together with our partners Chevron and Repsol and we’ve held for sometime these blocks over here containing the Mizzen discovery and this one – this block here I think was one in the 2010 land sale by us.

So, a very, very strong frontier type of position with encouragement if I move from the map now over to the cross section we have encouragement from our Mizzen discovery where we’ve drilled a discovery well and an appraisal. The wells on Mizzen, this is very schematic, but they given us the information to develop what Pal was talking about and may be in some more detail in this basin, the sweet spot maps and the understanding of the play, which is represented by this prospect down dip from Mizzen, which is actually a prospect out here that we would like to develop for future drilling. So, we see that we have the – we’ve established both reservoir and source rock and effective hydrocarbon system in this basin and we see that other areas away from Mizzen could have even better developments.

So, if I return to the map, what you see is Mizzen here and then we have our next well, Harpoon is scheduled for spud at the end of 2012. Harpoon is an impact size prospect we own 65, currently 65% of that license. And then we have follow-up potential of in fact all of these prospects are impact size and all of them are structural closures. So, this is a really very unique position for us and for any company in the world to have large impact size structural closures in a basin that has a proven hydrocarbon system. So to test this portfolio, we have contracted a rig, West Aquarius where we have three slots that will be kicking off with the Harpoon well in late 2012.

So moving on from Canada and to Alaska, you can see that Alaska is yet another component of our Arctic build-up. We have an operated position here in this set of blue box. These blocks are actually the same size of Gulf of Mexico blocks you could hope that maybe they would be a little bit bigger in the Arctic, but they are the same and are actually operated under the same sort of rules and regulations. We have a shortest 3D program around these blocks and actually acquired very, very high quality 3D data there.

So, we have developed prospect Amundsen here, which we are maturing towards drilling and we are targeting drilling of Amundsen in 2014. We have not yet taken a decision on that as a final decision. We also have a very interesting position to the shelf. This is a set of license is operated by ConocoPhillips where we have a 25% in each of those 50 licenses. Now they also have shorter 3D of good quality and developed an impact size prospect called Devils Paw. And Devils Paw is also schedule to be drilled in 2014.

Let me just also mentioned that you can see on the map, number of other wells, these were wells drilled by – mainly by shale in the late 80s and early 90s. And especially this well Burger here is a well that gives encouragement in this basin and that improved gas, improved potentially a large accumulation of gas. What we hope for ourselves is oil and we have put together the data and evidence that DuPont to that our prospect appear could be a very good oil prospect, the same thing at this one, Devils Paw.

Shale will actually be kicking off their exploration program on Burger drilling an appraisal well on this – this year so that will be a very interesting test for us to follow long. So, we are again have not may the final decision in our drilling, but if we move ahead we’ll be kicking off our permitting campaign in a few months and beginning to do the heavy preparations that we know have to be done in this environmentally sensitive area. It is thus important for us to work with the other operators and in environment like this and we are – we’re working with both ConocoPhillips and Shale on developing drilling logistics and oil spill response system for this Arctic basin.

So summary to – we are executing a very aggressive program in the next couple of years in North America. We – if you look at the keywords for Gulf of Mexico here streamlined, quality seismic database, proprietary imaging, drilling capacity. So, we set our sales up that’s the title of the talk we set our sales up for success. We hopefully will get it, Grand Banks keywords, dominant operated position, and we will be drilling some of these impact prospects there on a drills schedule we have capacity.

And in Chukchi in Alaska we’re moving forward and maturing the prospect for drilling that the Amundsen prospect. So again to summarize, we built an operating capability, a very strong prospect portfolio, superior seismic databases and not the least knowledge that will allow us to test a diverse and volume significant set of prospects over the next couple of years. And this is an effort we intend to sustain over time as North America steps into the title of core area for Statoil. Thanks.

Hilde Nafstad

Thank you, Erik. We are now ready for the second Q&A session and Tim, Gro, and Erik will answer your questions related to their presentations. Should there be any questions relating to Arctic Exploration, we also have (indiscernible) who is the Head of Arctic Exploration, who can answer those questions and should there be questions on technology (indiscernible) unfortunately got sick and couldn’t attend. The panel will also answer your questions related to his presentations. So, we’ll start out taking questions from the audience here in Oslo and yes.

Question-and-Answer Session

Andrew Stuttaford – ABG Sundal Collier

Hi, it’s Andrew Stuttaford from ABG Sundal Collier. Just a few questions for Gro, (indiscernible) discovery (Lund), they made an unsuccessful appraisal (indiscernible) discovery they see that on North Coast plant to drill the well in (indiscernible) is that something, I mean considering at the price lot willing to drill shallow water that’s something new. We are taking important on how do you viewed as well in terms of being oil field or (indiscernible) being water filled as much appraisal. And second one is if you can just reiterate the numbers from Gulfax about how many barrels found and also the value for those barrels.

Gro Gunleiksrud Haatvedt

Yes, first on (indiscernible) as I understand your question, you are asking about if you are going to deliver in 502 this year, and we are discussing the opportunities there. We haven’t finalized yet the evaluation of the prospectivity there. So, we are still discussing at least where we should will, it so, I cannot be specific on that, but we are working on it and looking upon potential there.

And then can you just the evaluation of Gulfax, yeah, I just – the evaluation of Gulfax, I was just thinking about is done in a very simple way, I just used the number of barrels and I think are used in the oil price of $6 (indiscernible) and then I just calculated up compared to the Skrugard/Havis and I just use the same principle on those 150 million to 200 million barrels in Gulfax area. So, it was and it’s 100% throughout this and it’s not including the CapEx other cost so, it more as yeah, revenues, sorry.

Andrew Stuttaford – ABG Sundal Collier

Just first one on King Lear, the well has been drilling for quite a while and could you please give some indication on when we can expect a result. And secondly is on the EM, we are previously communicated that EM data was crucial when discovered both Skrugard and Havis. Could you give some color on which prospects you applied EM now and how we will apply EM going forward.

Gro Gunleiksrud Haatvedt

When it comes to King Lear, we are drilling on that still and I think we will comeback early summer with a result on that well. So, that’s what I can say on that well. And it comes to EM data and how use that in the Barents Sea. I can say that EM data is quite we just say excellent data to use in that area, but for us it’s really important also to integrate those data into all the other data also the geophysical data. Because we have to fit all data together and then with the geological knowledge that we have is very important to use this as a combined data evaluation and then from this combined data evaluation, we can drill the consequences and see the potential. So, we don’t use EM data alone, but we use it together with all the other geological and geophysical data to come up with a result of (revolution).

Hilde Nafstad

Now, the question please?

Marc Kofler – Macquarie

Hi, there. It’s Marc Kofler from Macquarie again. Just two quick questions. I was hoping you could remind me again on that minimum commercial threshold at King Lear? And then just secondly just if you give the – if we think about an overall CapEx in explorations we have $3 billion just the allocation of that within the NCS in North America? That would be great. Thanks.

Gro Gunleiksrud Haatvedt

Yeah. I think when it comes to King Lear. And this I think I have come back to that and when it comes to the rig, yeah, so I will come back to that, check that out. And the other question…

Unidentified Company Speaker

Was on the CapEx was it?

Marc Kofler – Macquarie

Just a split..

Gro Gunleiksrud Haatvedt

On the CapEx for King Lear?

Marc Kofler – Macquarie

On the split between Norway and the rest of the portfolio.

Gro Gunleiksrud Haatvedt

Okay, understood.

Marc Kofler – Macquarie

I think it’s a little bit difficult, I don’t know of the exact numbers, but I guess somewhere close to half the wells…

Unidentified Company Speaker

(indiscernible).

Marc Kofler – Macquarie

Okay. Did you hear that on the website about one-third in Norway on the exploration wells and then two-thirds otherwise? And as I said that’s about 60% of our spend but I think seismic and the other costs are relatively designed as well, yeah, somewhere between 130% and 140% hopefully.

Unidentified Company Speaker

(indiscernible).

Hilde Nafstad

We have another question. We have from Trond.

Trond Omdal – Arctic Securities

Trond Omdal, Arctic. It hasn’t been that focused today, but could you say a little bit there has been some reports that you might also have found into other shale opportunities, could you talk a little bit of where you see, do you see any potential in both more shale opportunities both in the U.S. and even in Canada? And second question on Aldous or previously called Aldous, you still consider Aldous North sorry the high-impact well after the first disappointment?

Gro Gunleiksrud Haatvedt

I can – then we are talking about the (indiscernible). And I will not confirm any volumes, but it has interest in potential that’s what I can say.

Unidentified Company Speaker

On the shale stuff thrown not quite sure what you are alluding to, but I guess my statement is we haven’t farmed in until we have and we’ll announce that at the appropriate time, but we are continuing to consider further probably more immature shale opportunities in the U.S., but also globally select opportunities there. And in that case, we’ve run the similar process. We have a number of basins or countries, which we prioritize and in fact it’s Pal’s group. It was actually done all that subsurface work. So, we have done it in the same way for the unconventional hydrocarbons as we are done with conventional. We have chosen a few areas and it’s not anywhere close to 18 where we are considering entering into what I would call exploration unconventional opportunities, so that a bit more than that I can’t confirm at this point in time.

Unidentified Company Speaker

(indiscernible)

Trond Omdal – Arctic Securities

Just to follow-up, China of course you were an early entrant, but then due to some un-political issues seemed to maybe have stopped up there, the other area Argentina whether it’s a lot of focus among some of the majors and of course the IPF nationalization may have increased the risk (indiscernible) those two geographies?:

Unidentified Company Speaker

Okay. I’ll try and keep this short and I don’t know how sweet it will be, but anyway I think the situation in China is unchanged, i.e., status quo. When it comes to Argentina, well, I’ll let you speculate and it’s to whether Argentina is one of our prioritized basins or not, the fact that a lot of other companies go in there might give you a good indication.

Hilde Nafstad

I can’t see. Yes, I see one more question in Oslo.

Trond Omdal – Arctic Securities

(indiscernible). I see you planned to drill 8 to 12 exploration wells in the Utsira high over the next three years, could you maybe tell a bit more about those prospects, have you found any one that are high impact potential or smaller prospects?

Gro Gunleiksrud Haatvedt

I can tell, because I think there are some interesting prospects both in or in the licenses we held as an operator, but also in the partner licenses. And if there is absolutely a potential for impact prospects in those licenses, but we will come back to it when we are more clear and then we have fully evaluated the area, but we see absolutely a potential for some interesting prospect to be drilled in that area. And of course based on the history here, it’s not that easy either to map and integrate, so you have to use sometime and we are now doing this, which I say improving all the seismic data for imaging and also trying to use different kind of acquisition methods and then we will use the time and really seeing through and understand also better which I say the whole migration history in that area. So, before we take any final decision.

Hilde Nafstad

Alright. We’ll then turn to our audio conference audience. And the first question comes from Peter Hutton with RBC. Please go ahead Peter. Are you there, Peter?

Peter Hutton – RBC

Yeah sorry. Good afternoon. (indiscernible) is slightly low there, two questions for Erik if I may. You mentioned in your presentation that you’d like to be able to give more information on the figures on Logan. Given that you are the operator, what’s the hold of that, why aren’t you able to provide that? And the second one is on the Chukchi, you are saying this is sort of the target 2014, as you move towards this, is it fair to say the – one of the key factors in that decision-making process is likely to be sort of contingent on the approvals for shale as one of the other operators and seeing how that goes? And on that basis, what’s your reading of how that’s progressing at the moment?

Erik Finnstrom

Yes, on Logan I just have to apologize really that I didn’t run the traps before this presentation that we haven’t run it through our partners. So, we will be able to say something more about Logan pretty quickly and we will be having another presentation in the United States in about three weeks, where we more recently give a more specific number on Logan.

Peter Hutton – RBC

Okay.

Erik Finnstrom

So, I apologies for that. On the Chukchi – the Chukchi yes, 2014 we will certainly be watching what happens to Shell very closely. We will be running our own process independent to that, but clearly it does give us information in terms of how long it takes to get permits, what are the issues in terms of also potential lawsuits, such things we’ll be watching what happens with Shell.

Peter Hutton – RBC

Okay, thank you.

Hilde Nafstad

Our next question comes from Nick Coleman with Argus Media. Please go ahead, Nick.

Nick Coleman – Argus Media

Hi, thank you. Question about (indiscernible), the pronunciation right, the closed areas offshore Norway. How confident are you that it’s going to be fully opened up for the industry? I think you go in a general election coming up very soon in Norway. Do you have a feeling you are optimistic about the opportunity there opening up?

Erik Finnstrom

Okay, I’ll again short, but not necessarily sweet. I think it’s not a question about if it’s more a question about when. And I think that is about as much as we can say as you know then the Norwegian petroleum directed have acquired new seismic in both areas. That’s been made available for the industry. So, we have to assume they have done with the purpose and that these areas will be opened up that will past these areas will be opened up for exploration – further exploration activity are drilling that some stage and not too distant future.

Nick Coleman – Argus Media

Okay, thanks.

Hilde Nafstad

Thank you. I can’t see any more questions on my list. Is that correct operator? Are there no more questions from the audio conference?

Hilde Nafstad

We have question from Neill Morton from Berenberg.

Gro Gunleiksrud Haatvedt

Please go ahead Neill.

Neill Morton – Berenberg

Yeah I have two questions actually, first is going back to Rosneft deal. We see a number offshore deals in last month or so with ENI with Exxon and Statoil. Just as background, was the acreage offered done on a sort of set many pieces or sort of our cart. Could you sort of they can chose the area discuss for you would like to explore and just following one from that. The one block if got up in the balance is there any sort of (indiscernible) across from your existing knowledge and then reach inside. And secondly is question on qualification a lot of talk in the last presentation of impact prospects. Could you let me define is that different is that lower number from high impact little bit confuse that? Thank you.

Unidentified Company Speaker

Okay. Let me start out on the Rosneft issue on Erik and follow up on the impact question. On the Rosneft little bit of both if you like when we go to negotiation table we presented with the greater number of opportunities then we picked. So it was in the question that so it wasn’t set menu but it wasn’t sorry either. So that’s I think where we launch look at this is that we are third -- of three very large companies to do very large significant strategic deals with Rosneft in Russia and we are very pleased to be one of those three and we are satisfied with the acreage which we’ve got.

In terms of sort of across not quite sure what alluding to up in the Northern Barents Sea but this is rank front here acreage. The more go in the Barents Sea both in the region part in the Russian Part. The less date that is and it is effect that there is only one seismic line through the block which we acquired upon the North and none on the Norwegian side. Of course that we have used our region understanding of the Barents Sea both Norwegian and Russian in order to have some kind of view on this acreage. But I think country maybe two common perception then all of the three Rosneft licenses in the Central Barents Sea which were part previous dispute this on have to be considered to be rank Frontier high risk opportunities with a very uncertain oil and gas potential. And has to do with the amount of data available which is very, very limited and limited to the seismic and then on the impact question that are –

Unidentified Company Speaker

Again I apologize that’s kind of language gap development between across continents I guess it’s exactly the same thing impact and high impacted that we maintain imply anything different then the definition that we shown by Tim or Pal in the beginning.

Neill Morton – Berenberg

Okay, that’s great. Very clear thank you.

Hilde Nafstad – Head of Investor Relations

Thank you. I can’t see any further questions. So, this will conclude our Q&A session and our event for today. The presentations and Q&A sessions can be replay from website. If you have any further question please ask way to contact us in the investor relations department. Thank you all very much for participating today and have a good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Statoil ASA's Management Hosts Exploration Seminar (Transcript)
This Transcript
All Transcripts