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Lundin Norway – Our visions and strategies as a leading

company in the Norwegian part of the Barents Sea

by Bernt Rudjord, HSEQ Manager, Lundin Norway AS

Joint MARPART-SEBS Conference, Murmansk 9 April 2015 1


«Formula for success:

Rise early, work hard, strike oil»

J. Paul Getty (1892-1976)

2 Joint MARPART-SEBS Conference, Murmansk 9 April 2015


Lundin Norway AS (LNAS) – A Norwegian Success Story

2003: LNAS established

2004: Aquiring licenses from DNO

2007: Drilling of first LNAS operated exploration well

Edvard Grieg discovery

2008: Alvheim production start-up

Marathon operated

2010: Johan Sverdrup discovery

2013: Gohta oil discovery in the Barents Sea

2014: Alta oil discovery in the Barents Sea

2014: Brynhild production start-up

The first LNAS operated field

2015 (4Q): Edvard Grieg production start-up



Edvard Grieg Living Quarter September 2014



Edvard Grieg Steel Jacket and Rowan Viking



Organic growth strategy

Find new oil

• New and existing play concepts

• Yearly balanced exploration and delineation drilling

• Clustering the portfolio: • Efficient exploration • Harvest on own breakthroughs • Lower economic threshold for

commerciality

• Afford to have good ideas

Develop new oil

• Edvard Grieg (Planned start-up 4Q 2015)

• Johan Sverdrup (Planned start-up 2019)

• Luno 2

• Gohta (Barents Sea)

• Alta (Barents Sea)

Produce more from developed fields

• Brynhild

• Alvheim and Volund

• Bøyla

• Near field exploration

Joint MARPART-SEBS Conference, Murmansk 9 April 2015 6


Lundin Norway since 2004 start-up



Focused and balanced license portfolio

2015 Exploration and Appraisal Activity (Spending more than 300 Million USD in 2015 alone)

3

Alta II (PL 609) Alta III (PL 609) Neiden (PL 609) Ørnen (PL 708) (East of Core Area)

2 Morkel (PL 579)

1 Zulu (PL 674BS) Luno II North (PL 359) Fosen (PL 544) Gemini (PL 338C) Edvard Grieg South East (PL 338)



Alta and Gohta area



Alta discovery at

Loppa High



Recoverable Resources

Oil;13-50 mill Sm3

Gas; 5-17 billion Sm3

DST:

Oil rate: ~518 Sm3/d

‘(36/64" fixed choke)

GOR: ~94 Sm3/Sm3



Alta well test 2014


Lundin Norway received an exploration award in 2015 for “Identification of drillable prospects through thorough integration of all available data and technology”


Facts closes the knowledge gap and the need for the precautionary principle

Bridging the knowledge gap

Storage in Mareano database to avoid black hole storage



Gas flare demonstrates ongoing petroleum migration

? ?

Loppa high

Skrugard Salina

Gas

bubbles

sampled

7120/1-3

Gohta



Seabottom as it is

1m

1m

1.000.000

HUGIN

AUV pictures

Trawl marks



Gas flares



Operations in the Barents Sea

Large area

Potentially long distances to emergency response resources

Lundin Norway’s operations in the Barents Sea are currently located outside icy waters, ice bergs/drifting ice is not an issue for the rigs/vessels

Our approach in the Barents Sea are basically the same as in other areas on the Norwegian Continental Shelf

The rig and its crew must be able to handle the weather conditions in the area

• SAR helicopter must be located such that acceptable response times are met

• SAR helicopter must be able to operate in «all» weather conditions, e.g. having de-ice equipment installed (AWSAR)

• SAR helicopter must have Forward Looking Infrared Camera (FLIR) installed

Support vessels must be fit for purpose, ref. DNV-OS-A201 «Winterization for Cold Climate Operations»



Operations in the Barents Sea (cont.)

Weather during Winter:

Polar Lows/Squalls

Low temperatures

Sea spray/atmospheric icing

Fog/dense snow flurry

Limited day light

But:

• Not necessarily higher waves and stronger wind compared to the North Sea

Exploration activities are limited in duration

Important to adapt to the conditions in the Barents Sea and define appropriate operational criteria for such operations

0

5

10

15

20

25

30

35

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Avg Snøhvit Max Snøhvit Avg Johan Sverdrup Max Johan Sverdrup

Wind speed [m/s]



Lundin Norway’s approach when drilling in the Barents Sea

Wind shields to protect the workers

Protection of equipment

Equipment for ice removal

Suitable survival suits

Requirement to use woolen clothes in cold periods

Attention to / training in working in cold climate

Qualification of our standby vessel to NOFO (Oil-spill recovery)

Installation of equipment and training of crew



SAR Helicopter - Lundin Norway’s approach

Dedicated LNAS AWSAR helicopter in Hammerfest or Kirkenes (PL 708 Well)

Duty Doctor in Hammerfest or Kirkenes (PL 708 Well)

Cooperation with Statoil/Eni wrt back-up AWSAR & LimSAR helicopter in Hammerfest



Standby Vessel - Lundin Norway’s approach

Standby Vessel to have equipment installed enabling unconscious personnel/ people with hypothermia to be picked up from the sea, for example using a Dacon Rescue Scoop

Traditional rescue basket is not acceptable



Promoting increased knowledge and continuous improvement

Lundin Norway participate in R&D projects, e.g. testing various coating material to reduce vessel icing

Lundin Norway participate in SARiNOR

Participated in Norwegian Oil and Gas Work group focusing on operations in the far north

Technology development program "Oil Spill 2015" (NOFO-regi) focusing on oil spill recovery in northern areas

The oil industry, thru NOFO, have an agreement with 30 fishing vessels in Finnmark to support in any near coast clean-up operations

Local fishermen have important and useful local knowledge, e.g. prevailing currents, etc.



Norwegian / Russian Cooperation

In November 2014, LNAS together with Statoil, Eni, the Norwegian Coastal Administration and Russian Oil Spill Recovery (OSR) organizations participated in a Norwegian-Russian table top exercise in Murmansk.

The scenario was based on an oil spill from exploration drilling in Norwegian waters drifting into the Russian part of the Barents Sea.

The joint Norwegian-Russian Contingency Plan for Oil Spill Response in the Barents Sea was the basis for the exercise.

How do the Russian authorities respond?

How does the Norwegian Coastal Administration respond?

What will the operator do?

Operational aspects?



Cooperation with other operators active in the Barents Sea

Lundin, together with ENI, GDF Suez, OMV and Statoil, is a member of a Barents Sea Exploration Collaboration (BaSEC) Group

Collaboration to reduce the risk level related to exploration activities in the Norwegian Barents Sea

Logistics & Emergency response work group (1 of 5 work groups)

Planning an exercise to test oil spill recovery in icy waters

Special focus on areas included in the 23rd concession round in Norway



23. Norwegian concession round

The 23. concession round in Norway was announced in January 2015

Deadline for application is December 2015

57 blocks or part of blocks are included 54 in the Barents Sea

3 in the Norwegian Sea

Of the 54 blocks in the Barents Sea, most of them are located in the Barents Sea South East

In the Barents Sea South East, 33 companies have cooperated to shoot new seismic and process same («Group shoot»), totally 13 500 km2 seismic data

The competitiveness is how to interpret these data, not in the shooting and processing Reduced costs



23. concession round and Lundin Norway

Lundin responsible for seismic processing



«…but do not forget: It is not the strongest species that

survive, nor the most intelligent, but the most responsive

to change»

Charles Darwin

Thank you for your attention!


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