DeGolyer and MacNaughton

5001 Spring Valley Road  Suite 800 East  Dallas, Texas 75244

February 29, 2016Statoil ASAForusbeen 50N-4035 StavangerNorway

  Gentlemen:

Pursuant to your request, we have  conducted an independent evaluation, completed on February 29, 2016, to serve  as a reserves audit of the net proved oil, condensate, liquefied petroleum gas  (LPG), and sales gas reserves, as of December 31, 2015, of certain  properties (Table 1) owned by Statoil ASA (Statoil). Statoil has represented  that these properties account for 100 percent, on a net equivalent barrel basis,  of Statoil’s net proved reserves as of December 31, 2015, and that Statoil’s  estimates of net proved reserves have been prepared in accordance with the  reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the  Securities and Exchange Commission (SEC) of the United States. We have reviewed  information provided to us by Statoil that it represents to be Statoil’s  estimates of the net reserves, as of December 31, 2015, for the same properties  as those which we have independently evaluated. This report was prepared in accordance with guidelines specified in  Item 1202 (a)(8) of Regulation S-K and is to be used for inclusion in certain  SEC filings by Statoil.

Reserves included herein are expressed as net reserves as  represented by Statoil and as estimated by DeGolyer and MacNaughton. Gross  reserves are defined as the total estimated petroleum to be produced from these  properties after December 31, 2015. Net reserves are defined as that  portion of the gross reserves attributable to the interests owned by Statoil  after deducting interests owned by others.

Estimates of oil, condensate, LPG, and sales gas should be  regarded only as estimates that may change as further production history and  additionalinformation become available. Not only  are such reserves estimates based on that information which is currently  available, but such estimates are also subject to the uncertainties inherent in  the application of judgmental factors in interpreting such information.

Data used in this audit were obtained from reviews with Statoil  personnel, from Statoil files, from records on file with the appropriate  regulatory agencies, and from public sources. In the preparation of this report  we have relied, without independent verification, upon such information  furnished by Statoil with respect to property interests, production from such  properties, current costs of operation and development, current prices for  production, agreements relating to current and future operations and sale of  production, and various other information and data that were accepted as  represented. A field examination of the properties was not considered necessary  for the purposes of this report.

### Methodology and Procedures

Estimates of reserves were  prepared by the use of appropriate geologic, petroleum engineering, and  evaluation principles and techniques that are in accordance with practices  generally recognized by the petroleum industry as presented in the publication  of the Society of Petroleum Engineers entitled “Standards Pertaining to the  Estimating and Auditing of Oil and Gas Reserves Information (Revision as of  February 19, 2007).” The method or combination of methods used in the analysis  of each reservoir was tempered by experience with similar reservoirs, stage of  development, quality and completeness of basic data, and production history.

When applicable, the volumetric method was used to estimate the  original oil in place (OOIP) and the original gas in place (OGIP). Structure  and isopach maps were constructed to estimate reservoir volume. Electrical  logs, radioactivity logs, core analyses, and other available data were used to  prepare these maps as well as to estimate representative values for porosity  and water saturation. When adequate data were available and when circumstances  justified, material balance and other engineering methods were used to estimate  OOIP or OGIP.

Estimates of ultimate recovery were obtained after applying  recovery factors to OOIP or OGIP. These recovery factors were based on  consideration of the type of energy inherent in the reservoirs, analyses of the  petroleum, the structural positions of the properties, and the production  histories. When applicable, material-balance and other engineering methods were  used to estimate recovery factors. In such cases, an analysis of reservoir  performance, including production rate, reservoir pressure, and gas-oil ratio  behavior, was used in the estimation of reserves.

For depletion-type reservoirs or those whose performance  disclosed a reliable decline in producing-rate trends or other diagnostic  characteristics, reserves were estimated by the application of appropriate  decline curves or other performance relationships. In the analyses of  production-decline curves, reserves were estimated only to the limits of  economic production or to the limit of the production licenses as appropriate. 

In certain cases, elements of the reserves estimates incorporated  information based on analogy with similar reservoirs where more complete data  were available.

### Definition of Reserves

Petroleum  reserves estimated by Statoil and by us included in this report are classified  as proved. Only proved reserves have been evaluated for this report. Reserves  classifications used by Statoil and by us in this report are in accordance with  the reserves definitions of Rules 4–10(a) (1)–(32) of Regulation S–X of the  SEC. Reserves are judged to be economically producible in future years from  known reservoirs under existing economic and operating conditions and assuming  continuation of current regulatory practices using known production methods and  equipment. In the analyses of production-decline curves, reserves were  estimated only to the limit of economic rates of production under existing  economic and operating conditions using prices and costs consistent with the  effective date of this report, including consideration of changes in existing  prices provided only by contractual arrangements but not including escalations  based upon future conditions. The petroleum reserves are classified as  follows:

*Proved oil and gas reserves* – Proved oil and gas reserves are those quantities of oil and gas, which, by  analysis of geoscience and engineering data, can be estimated with reasonable  certainty to be economically producible—from a given date forward, from known  reservoirs, and under existing economic conditions, operating methods, and  government regulations—prior to the time at which contracts providing the right  to operate expire, unless evidence indicates that renewal is reasonably  certain, regardless of whether deterministic or probabilistic methods are used  for the estimation. The project to extract the hydrocarbons must have commenced  or the operator must be reasonably certain that it will commence the project  within a reasonable time.

(i) The area of the reservoir considered as proved includes:    (A) The area identified by drilling and limited by fluid  contacts, if any, and (B) Adjacent undrilled portions of the reservoir that  can, with reasonable certainty, be judged to be continuous with it and to  contain economically producible oil or gas on the basis of available geoscience  and engineering data.

(ii) In the absence of data on fluid contacts, proved  quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as  seen in a well penetration unless geoscience, engineering, or performance data  and reliable technology establishes a lower contact with reasonable certainty.

(iii) Where direct observation from well penetrations has  defined a highest known oil (HKO) elevation and the potential exists for an  associated gas cap, proved oil reserves may be assigned in the structurally  higher portions of the reservoir only if geoscience, engineering, or  performance data and reliable technology establish the higher contact with  reasonable certainty.

(iv) Reserves which can be produced economically through  application of improved recovery techniques (including, but not limited to,  fluid injection) are included in the proved classification when:    (A) Successful testing by a pilot project in an area of the  reservoir with properties no more favorable than in the reservoir as a whole,  the operation of an installed program in the reservoir or an analogous  reservoir, or other evidence using reliable technology establishes the  reasonable certainty of the engineering analysis on which the project or  program was based; and (B) The project has been approved for development by all  necessary parties and entities, including governmental entities.

(v) Existing economic conditions include prices and costs at  which economic producibility from a reservoir is to be determined. The price  shall be the average price during the 12‐month period prior to the ending date  of the period covered by the report, determined as an unweighted arithmetic  average of the first-day-of-the-month price for each month within such period,  unless prices are defined by contractual arrangements, excluding escalations  based upon future conditions.

*Developed oil and gas  reserves* – Developed oil and gas reserves are reserves of any category that  can be expected to be recovered:

(i) Through existing wells with existing equipment and  operating methods or in which the cost of the required equipment is relatively  minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure  operational at the time of the reserves estimate if the extraction is by means  not involving a well.

*Undeveloped oil and gas reserves* – Undeveloped oil and gas reserves are reserves of any category that are  expected to be recovered from new wells on undrilled acreage, or from existing  wells where a relatively major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those  directly offsetting development spacing areas that are reasonably certain of  production when drilled, unless evidence using reliable technology exists that  establishes reasonable certainty of economic producibility at greater  distances.

(ii) Undrilled locations can be classified as having  undeveloped reserves only if a development plan has been adopted indicating  that they are scheduled to be drilled within five years, unless the specific  circumstances justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped  reserves be attributable to any acreage for which an application of fluid  injection or other improved recovery technique is contemplated, unless such  techniques have been proved effective by actual projects in the same reservoir  or an analogous reservoir, as defined in [section 210.4–10 (a) Definitions], or  by other evidence using reliable technology establishing reasonable certainty.

### Primary Economic Assumptions

The following economic assumptions were used for estimating  existing and future prices and costs:

*Oil, Condensate, and LPG Prices*

Statoil has represented that the provided oil, condensate,  and LPG prices were based on a reference price, calculated as the unweighted  arithmetic average of the first-day-of-the-month price for each month within  the 12‐month period prior to the end of the reporting period, unless prices are  defined by contractual arrangements. Statoil supplied differentials by field to  a Brent oil reference price of 54.25 United States dollars (U.S.$) per barrel  and the prices were held constant thereafter. The volume-weighted average prices  attributable to the proved reserves estimated by DeGolyer and MacNaughton in  this report were U.S.$51.21 per barrel for oil, U.S.$48.01 per barrel for  condensate, and U.S.$30.56 per barrel for LPG.

*Gas Prices*

Statoil has represented that the provided gas prices were  based on a reference price, calculated as the unweighted arithmetic average of  the first-day-of-the-month price for each month within the 12-month period  prior to the end of the reporting period, unless prices are defined by  contractual arrangements. A significant quantity of the gas sold by Statoil is  subject to contract prices, and the range of such prices is varied. Where  appropriate, Statoil supplied differentials by field to a United Kingdom  National Balancing Point Index of U.S.$6.06 per thousand cubic feet reference  price and the prices were held constant thereafter. The volume-weighted average  gas price in this report was U.S.$6.18 per thousand cubic feet.

*Operating Expenses and Capital Costs*

Operating expenses and capital costs, based on information  provided by Statoil, were used in estimating future costs required to operate  the properties. In certain cases, future costs, either higher or lower than  existing costs, may have been used because of anticipated changes in operating  conditions. These costs were not escalated for inflation.

While the oil and gas industry may be subject to regulatory  changes from time to time that could affect an industry participant’s ability  to recover its oil and gas reserves, we are not aware of any such governmental  actions which would restrict the recovery of the December 31, 2015, estimated  oil and gas reserves. 

Statoil has represented that its estimated net proved reserves  attributable to the reviewed properties are based on the definitions of proved  reserves of the SEC. Statoil has represented that its estimates of the net  proved reserves attributable to these properties, which represent 100 percent  of Statoil’s reserves on a net equivalent basis, are as follows, expressed in  millions of barrels (MMbbl), billions of cubic feet (Bcf), and millions of  barrels of oil equivalent (MMboe):

|                                                                                                                                                      |   | Estimated by Statoil          Net Proved Reserves as of December 31, 2015 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
|                                                                                                                                                      |   | Oil and          Condensate          (MMbbl)                              |   |  

LPG            (MMbbl) |   | Sales          Gas          (Bcf) |   | Oil          Equivalent          (MMboe) |
|                                                                                                                                                      |   |                                                                      |   |   |   |   |   |   |
| Properties Reviewed by          DeGolyer and MacNaughton                                                                                                  |   |                                                                      |   |   |   |   |   |   |
|                                                                                                                                                      |   |                                                                      |   |   |   |   |   |   |
| Total Proved                                                                                                                                              |   | 2,091                                                                     |   | 364 |   | 14,624 |   | 5,060 |
|                                                                                                                                                      |   |                                                                      |   |   |   |   |   |   |
| Note: Gas is converted to oil equivalent using a factor    of 5,612 cubic feet of gas per 1 barrel of oil equivalent based on    energy equivalency. |

 

Our estimates of Statoil’s net proved reserves attributable to  the reviewed properties are based on the definitions of proved reserves of the  SEC and are summarized as follows, expressed in millions of barrels (MMbbl), billions  of cubic feet (Bcf), and millions of barrels of oil equivalent (MMboe):

|   |   | Estimated by DeGolyer and MacNaughton          Net Proved Reserves as of December 31, 2015 |
|--------|--------|--------------------------------------------------------------------------------------------|
|   |   | Oil          (MMbbl)                                                                       |   |  

Condensate            (MMbbl) |   |  

LPG            (MMbbl) |   | Sales          Gas          (Bcf) |   | Oil          Equivalent          (MMboe) |  
 

 

 

 

 

 

 

 

 

 

 

 
Properties Reviewed by          DeGolyer and MacNaughton

 

 

 

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 
Total Proved

 

2,045

 

114

 

379

 

14,309

 

5,087

 
 

 

 

 

 

 

 

 

 

 

 

 
Note: Gas is converted to oil equivalent using a factor    of 5,612 cubic feet of gas per 1 barrel of oil equivalent based on    energy equivalency.

In our opinion, the information relating to estimated proved  reserves of oil, condensate, LPG, and sales gas contained in this report has  been prepared in accordance with Paragraphs 932-235-50-4, 932-235-50-6,  932-235-50-7, and 932‐235‐50-9 of the Accounting Standards Update 932-235-50, *Extractive  Industries – Oil and Gas (Topic 932): Oil and Gas Reserve Estimation and  Disclosures* (January 2010) of the Financial Accounting Standards Board  and Rules 4–10(a)   (1)–(32) of Regulation S–X and Rules 302(b), 1201,  and 1202(a) (1), (2), (3), (4), (8) of Regulation S–K of the Securities and  Exchange Commission; provided, however, that estimates of proved developed and  proved undeveloped reserves are not presented at the beginning of the year.

To the extent the above-enumerated rules, regulations, and  statements require determinations of an accounting or legal nature, we, as  engineers, are necessarily unable to express an opinion as to whether the  above-described information is in accordance therewith or sufficient therefor.

In comparing the detailed net proved reserves estimates prepared  by us and by Statoil, we have found differences, both positive and negative, resulting  in an aggregate difference of 0.5 percent when compared on the basis of net  equivalent barrels. It is our opinion that the net proved reserves estimates prepared  by Statoil on the properties  reviewed by us and referred to above, when compared on the basis of net  equivalent barrels, in aggregate, do not differ materially from those prepared  by us.

DeGolyer and MacNaughton is an independent petroleum engineering  consulting firm that has been providing petroleum consulting services  throughout the world since 1936. DeGolyer and MacNaughton does not have any  financial interest, including stock ownership, in Statoil. Our fees were not  contingent on the results of our evaluation. This letter report has been  prepared at the request of Statoil. DeGolyer and MacNaughton has used all  methods and procedures as it considered necessary under the circumstances to  prepare this report. All assumptions, data, procedures, and methods used to  prepare this report are considered by DeGolyer and MacNaughton to be appropriate  for the purpose served by this report.

Submitted,    /s/ DeGolyer and MacNaughton

DeGOLYER and MacNAUGHTON    Texas Registered Engineering Firm F-716

 

(SEAL)   /s/ Lloyd W. Cade  ___________________________

Lloyd W. Cade, P.E.  Senior Vice President  De Golyer and MacNaughton

 

CERTIFICATE of QUALIFICATION

I, Lloyd W. Cade Petroleum  Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road, Suite 800  East, Dallas, Texas, 75244 U.S.A., hereby certify:
- That I am a Senior  Vice President with DeGolyer and MacNaughton, which company did prepare the letter  report addressed to Statoil dated February 29, 2016, and that I, as Senior  Vice President, was responsible for the preparation of this report.    
- That I attended Kansas State University, and that I graduated with a Bachelor of  Science degree in Mechanical Engineering in the year 1982; that I am a  Registered Professional Engineer in the State of Texas; that I am a member of the International Society of Petroleum Engineers;  and that I have approximately 33 years of experience in oil and gas reservoir  studies and reserves evaluations. 

SIGNED: February 29, 2016 

(SEAL) /s/ Lloyd W. Cade___________________________

Lloyd W. Cade, P.E.      Senior Vice President      De Golyer and MacNaughton

**TABLE 1**

Country
 
Field
  
Algeria
 
In Amenas
 
In Salah

Angola
 
Acacia
 
Batuque
 
Bavuca
 
Clochas
 
Cravo
 
Dalia
 
Girassol
 
Jasmim
 
Kakocha
 
Kizomba "A"
 
Kizomba "B"
 
Lirio
 
Marimba
 
Mavacola
 
Mondo
 
Mondo South
 
Orquidea-Violeta
 
Perpetua-Hortensia
 
PSVM
 
Rosa
 
Saxi
 
Zinia

Azerbaijan
 
Azeri-Chirag-Gunashli

Brazil
 
Peregrino

Canada
 
Hebron
 
Hibernia
 
Hibernia South Extension    Unit
 
Leismer
 
Terra Nova

Ireland
 
Corrib

Libya
 
Mabruk
 
Murzuk

Nigeria
 
Agbami

Norway
 
Aasta Hansteen
 
Alve
 
Asgard-Midgard
 
Asgard-Smorbukk
 
Asgard-Smorbukk South
 
Borg
 
Borg Northwest
 
Edvard Grieg
 
Ekofisk
 
Eldfisk
 
Embla
 
Enoch
 
Flyndre
 
Fram C-East
 
Fram East
 
Fram H-North
 
Fram West
 
Gimle
 
Gina Krog
 
Goliat
 
Grane
 
Gudrun (incl. Gudrun East)
 
Gullfaks Area
 
Gulltopp
 
Gullveig
 
Gunge
 
Hanz
 
Heidrun (incl. North)
 
Hyme
 
Ivar Aasen
 
Johan Sverdrup
 
Kristin
 
Kvitebjorn 
 
Martin Linge
 
Marulk
 
Mikkel
 
Morvin
 
Njord
 
Norne
 
Ormen Lange
 
Oseberg
 
Oseberg Delta 2
 
Oseberg East
 
Oseberg South
 
Rhea
 
Rimfaks
 
Ringhorne East
 
Sigyn
 
Skarv
 
Skinfakis
 
Skuld
 
Sleipner East
 
Sleipner West
 
Snohvit
 
Snorre North
 
Snorre South
 
Statfjord
 
Statfjord East
 
Statfjord North
 
Svalin
 
Sygna
 
Titan
 
Tor
 
Tordis Area
 
Troll 
 
Tune
 
Tyrihans
 
Urd
 
Valemon
 
Veslefrikk
 
Vigdis
 
Vigdis East
 
Vigdis Northeast
 
Vilje
 
Visund
 
Visund South
 
Volve

Russia
 
Kharyaga

United Kingdom
 
Alba
 
Jupiter
 
Mariner

United States
 
Bakken
 
Eagle Ford SOA
 
Eagle Ford Third Party
 
Eagle Ford TLM
 
Green Canyon Blocks 683/726/727/770 (Caesar-Tonga)
 
Green Canyon Blocks 859/903 (Heidelberg)
 
Green Canyon - Stampede
 
Green Canyon - Tahiti
 
Marcellus Play - Northern District
 
Marcellus Play - Southern District
 
Marcellus SOA
 
Walker Ridge - Big Foot
 
Walker Ridge - Jack
 
Walker Ridge - Julia
 
Walker Ridge - St. Malo

Venezuela
 
Petrocedeño

 

  |