| For the fiscal year ended December 31, 2012 | Commission File Number: 333-12138 |
|---------------------------------------------|-----------------------------------|

| CANADIAN NATURAL RESOURCES LIMITED(Exact name of Registrant as specified in its charter)                                                                                                                       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                           |
| ALBERTA, CANADA(Province or other jurisdiction of incorporation or organization)                                                                                                                          |
| 1311(Primary Standard Industrial Classification Code Numbers)                                                                                                                                                  |
|                                                                                                                                                                                                           |
| Not Applicable(I.R.S. Employer Identification Number (if applicable))                                                                                                                                          |
|                                                                                                                                                                                                           |
| 2500, 855-2nd Street S.W., Calgary, Alberta, Canada, T2P 4J8Telephone: (403) 517-7345(Address and telephone number of Registrant’s principal executive offices)                                          |
|  CT Corporation System, 111-Eighth Avenue, New York, New York 10011(212) 894-8940(Name, address (including zip code) and telephone number (including area code)of agent for service in the United States) |

| Title of Each Class:        | Name of each exchange on which registered: |
|-----------------------------|--------------------------------------------|
| Common Shares, no par value | New York Stock Exchange                    |

| [    ] Annual information form |   | [ X ] Audited annual financial statements |
|-----------------------------------------------|--------|-------------------------------------------|

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| Yes [ X ] |   | No [   ] |
|-----------|--------|-------------------------|

| Yes ____ |   | No ____ |
|----------|--------|--------------|

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|   | A. | Audited Annual Financial Statements |
|--------|----|-------------------------------------|

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| · | the Company’s consolidated financial statements as at and for the year ended December 31, 2012; and |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | the effectiveness of the Company’s internal control over financial reporting as at December 31, 2012. |
|--------|-------------------------------------------------------------------------------------------------------------|

| (signed) “Steve W. Laut” | (signed) “Douglas A. Proll” | (signed) “Murray G. Harris” |
|--------------------------------------|-----------------------------------------|-----------------------------------------|
| Steve W. Laut                        | Douglas A. Proll, CA                    | Murray G. Harris, CA                    |
| President                            | Chief Financial Officer &           | Vice-President, Financial Controller    |
|                                 | Senior Vice-President, Finance          | & Horizon Accounting                |

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| (signed) “Steve W. Laut” | (signed) “Douglas A. Proll” |   |
|--------------------------------------|-----------------------------------------|--------|
| Steve W. Laut                        | Douglas A. Proll, CA                    |   |
| President                            | Chief Financial Officer &           |   |
|                                 | Senior Vice-President, Finance          |   |

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| /s/ PricewaterhouseCoopers LLP |
|--------------------------------|

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|  As at December 31(millions of Canadian dollars) |   | Note   |   |   | 2012   |   |   | 2011   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| ASSETS                                                |   |   |   |   |   |   |   |   |   |
| Current assets                                        |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                             |   |   |   |   | $      | 37     |   |   | $      | 34 |   |
| Accounts receivable                                   |   |   |   |   |   | 1,197  |   |   |   | 2,077 |   |
| Inventory                                             |   |   | 4      |   |   |   | 554    |   |   |   | 550 |   |
|    Prepaids and other                  |   |   |   |   |   |   | 126    |   |   |   | 120 |   |
|                                                  |   |   |   |   |   |   | 1,914  |   |   |   | 2,781 |   |
| Exploration and evaluation assets                     |   |   | 5      |   |   |   | 2,611  |   |   |   | 2,475 |   |
| Property, plant and equipment                         |   |   | 6      |   |   |   | 44,028 |   |   |   | 41,631 |   |
| Other long-term assets                                |   |   | 7      |   |   |   | 427    |   |   |   | 391 |   |
|                                                  |   |   |   |   |   | $      | 48,980 |   |   | $ | 47,278 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                      |   |   |   |   |   | $      | 465    |   |   | $ | 526 |   |
| Accrued liabilities                                   |   |   |   |   |   |   | 2,273  |   |   |   | 2,347 |   |
|    Current income tax liabilities      |   |   |   |   |   |   | 285    |   |   |   | 347 |   |
| Current portion of long-term debt                     |   |   | 8      |   |   |   | 798    |   |   |   | 359 |   |
| Current portion of other long-term liabilities        |   |   | 9      |   |   |   | 155    |   |   |   | 455 |   |
|                                                  |   |   |   |   |   |   | 3,976  |   |   |   | 4,034 |   |
| Long-term debt                                        |   |   | 8      |   |   |   | 7,938  |   |   |   | 8,212 |   |
| Other long-term liabilities                           |   |   | 9      |   |   |   | 4,609  |   |   |   | 3,913 |   |
| Deferred income tax liabilities                       |   |   | 11     |   |   |   | 8,174  |   |   |   | 8,221 |   |
|                                                  |   |   |   |   |   |   | 24,697 |   |   |   | 24,380 |   |
| SHAREHOLDERS’ EQUITY                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Share capital                                         |   |   | 12     |   |   |   | 3,709  |   |   |   | 3,507 |   |
| Retained earnings                                     |   |   |   |   |   |   | 20,516 |   |   |   | 19,365 |   |
| Accumulated other comprehensive income                |   |   | 13     |   |   |   | 58     |   |   |   | 26 |   |
|                                                  |   |   |   |   |   |   | 24,283 |   |   |   | 22,898 |   |
|                                                  |   |   |   |   |   | $      | 48,980 |   |   | $ | 47,278 |   |

| /s/ Catherine M. Best                     |   | /s/ N. Murray Edwards                           |   |
|-------------------------------------------|--------|-------------------------------------------------|--------|
| Catherine M. Best                         |   | N. Murray Edwards                               |   |
| Chair of the Audit Committee and Director |   | Chairman of the Board of Directors and Director |   |

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| For the years ended December 31(millions of Canadian dollars, except per common share amounts) |   | Note   |   |   | 2012   |   |    | 2011   |   |   | 2010    |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| Product sales                                                                                       |   |   |   |   | $      | 16,195 |    |   | $      | 15,507 |    |   | $ | 14,322 |   |
| Less: royalties                                                                                     |   |   |   |   |   | (1,606 | )       |   |   | (1,715 | )       |   |   | (1,421 | ) |
| Revenue                                                                                             |   |   |   |   |   | 14,589 |    |   |   | 13,792 |    |   |   | 12,901 |   |
| Expenses                                                                                            |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |
| Production                                                                                          |   |   |   |   |   | 4,249  |    |   |   | 3,671  |    |   |   | 3,449 |   |
| Transportation and blending                                                                         |   |   |   |   |   | 2,752  |    |   |   | 2,327  |    |   |   | 1,783 |   |
| Depletion, depreciation and amortization                                                            |   |   | 6      |   |   |   | 4,328   |   |   |   | 3,604   |   |   |   | 4,120 |   |
| Administration                                                                                      |   |   |   |   |   |   | 270     |   |   |   | 235     |   |   |   | 211 |   |
| Share-based compensation                                                                            |   |   | 9      |   |   |   | (214    | )      |   |   | (102    | )      |   |   | 203 |   |
| Asset retirement obligation accretion                                                               |   |   | 9      |   |   |   | 151     |   |   |   | 130     |   |   |   | 123 |   |
| Interest and other financing costs                                                                  |   |   | 16     |   |   |   | 364     |   |   |   | 373     |   |   |   | 448 |   |
| Risk management activities                                                                          |   |   | 17     |   |   |   | 120     |   |   |   | (27     | )      |   |   | (134 | ) |
| Foreign exchange (gain) loss                                                                        |   |   |   |   |   |   | (49     | )      |   |   | 1       |   |   |   | (163 | ) |
| Horizon asset impairment provision                                                                  |   |   | 10     |   |   |   | – |   |   |   | 396     |   |   |   | – |   |
| Insurance recovery – property damage                                                          |   |   | 10     |   |   |   | – |   |   |   | (393    | )      |   |   | – |   |
| Insurance recovery – business interruption                                                    |   |   | 10     |   |   |   | – |   |   |   | (333    | )      |   |   | – |   |
| Equity loss from jointly controlled entity                                                          |   |   | 7      |   |   |   | 9       |   |   |   | – |   |   |   | – |   |
|                                                                                                |   |   |   |   |   |   | 11,980  |   |   |   | 9,882   |   |   |   | 10,040 |   |
| Earnings before taxes                                                                               |   |   |   |   |   |   | 2,609   |   |   |   | 3,910   |   |   |   | 2,861 |   |
| Current income tax expense                                                                          |   |   | 11     |   |   |   | 747     |   |   |   | 860     |   |   |   | 789 |   |
| Deferred income tax (recovery) expense                                                              |   |   | 11     |   |   |   | (30     | )      |   |   | 407     |   |   |   | 399 |   |
| Net earnings                                                                                        |   |   |   |   |   | $      | 1,892   |   |   | $      | 2,643   |   |   | $ | 1,673 |   |
| Net earnings per common share                                                                       |   |   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
|   Basic                                                                                   |   |   | 15     |   |   | $      | 1.72    |   |   | $      | 2.41    |   |   | $ | 1.54 |   |
|   Diluted                                                                                 |   |   | 15     |   |   | $      | 1.72    |   |   | $      | 2.40    |   |   | $ | 1.53 |   |

| For the years ended December 31(millions of Canadian dollars)                                             |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net earnings                                                                                              |   | $      | 1,892  |   |   | $      | 2,643  |   |   | $ | 1,673 |   |
| Net change in derivative financial instruments designated as cash flow hedges                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized income (loss), net of taxes of$4 million (2011 – $5 million, 2010 – $13 million)   |   |   | 31     |   |   |   | (23    | )      |   |   | (40 | ) |
| Reclassification to net earnings, net of taxes of$nil (2011 – $17 million, 2010 – $1 million) |   |   | (7     | )      |   |   | 52     |   |   |   | (4 | ) |
|                                                                                                      |   |   | 24     |   |   |   | 29     |   |   |   | (44 | ) |
| Foreign currency translation adjustment                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Translation of net investment                                                                             |   |   | 8      |   |   |   | (12    | )      |   |   | (24 | ) |
| Other comprehensive income (loss), net of taxes                                                           |   |   | 32     |   |   |   | 17     |   |   |   | (68 | ) |
| Comprehensive income                                                                                      |   | $      | 1,924  |   |   | $      | 2,660  |   |   | $ | 1,605 |   |

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| For the years ended December 31(millions of Canadian dollars)                |   |   Note |   |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------------------------------|--------|-------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Share capital                                                                |   |        | 12     |   |   |   |   |   |   |   |   |   |   |
| Balance – beginning of year                                            |   |        |   |   |   | $      | 3,507  |   |   | $      | 3,147  |   |   | $ | 2,834 |   |
| Issued upon exercise of stock options                                        |   |        |   |   |   |   | 194    |   |   |   | 255    |   |   |   | 170 |   |
| Previously recognized liability on stock options exercised for common shares |   |        |   |   |   |   | 45     |   |   |   | 115    |   |   |   | 149 |   |
| Purchase of common shares under Normal Course Issuer Bid                     |   |        |   |   |   |   | (37    | )      |   |   | (10    | )      |   |   | (6 | ) |
| Balance – end of year                                                  |   |        |   |   |   |   | 3,709  |   |   |   | 3,507  |   |   |   | 3,147 |   |
| Retained earnings                                                            |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – beginning of year                                            |   |        |   |   |   |   | 19,365 |   |   |   | 17,212 |   |   |   | 15,927 |   |
| Net earnings                                                                 |   |        |   |   |   |   | 1,892  |   |   |   | 2,643  |   |   |   | 1,673 |   |
| Purchase of common shares under Normal Course Issuer Bid                     |   |        | 12     |   |   |   | (281   | )      |   |   | (94    | )      |   |   | (62 | ) |
| Dividends on common shares                                                   |   |        | 12     |   |   |   | (460   | )      |   |   | (396   | )      |   |   | (326 | ) |
| Balance – end of year                                                  |   |        |   |   |   |   | 20,516 |   |   |   | 19,365 |   |   |   | 17,212 |   |
| Accumulated other comprehensive income                                       |   |        | 13     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – beginning of year                                            |   |        |   |   |   |   | 26     |   |   |   | 9      |   |   |   | 77 |   |
| Other comprehensive income (loss), net of taxes                              |   |        |   |   |   |   | 32     |   |   |   | 17     |   |   |   | (68 | ) |
| Balance – end of year                                                  |   |        |   |   |   |   | 58     |   |   |   | 26     |   |   |   | 9 |   |
| Shareholders’ equity                                                   |   |        |   |   |   | $      | 24,283 |   |   | $      | 22,898 |   |   | $ | 20,368 |   |

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| For the years ended December 31(millions of Canadian dollars)                       |   | Note   |   |   | 2012   |   |    | 2011   |   |    | 2010    |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|---------|---------|--------|
| Operating activities                                                                |   |   |   |   |   |   |    |   |   |    |    |   |
| Net earnings                                                                        |   |   |   |   | $      | 1,892  |    |   | $      | 2,643   |    |   | $ | 1,673 |   |
| Non-cash items                                                                      |   |   |   |   |   |   |    |   |   |    |    |   |   |   |   |
| Depletion, depreciation and amortization                                            |   |   |   |   |   | 4,328  |    |   |   | 3,604   |    |   |   | 4,120 |   |
| Share-based compensation                                                            |   |   |   |   |   | (214   | )       |   |   | (102    | )       |   |   | 203 |   |
| Asset retirement obligation accretion                                               |   |   |   |   |   | 151    |    |   |   | 130     |    |   |   | 123 |   |
| Unrealized risk management gain                                                     |   |   |   |   |   | (42    | )       |   |   | (128    | )       |   |   | (24 | ) |
| Unrealized foreign exchange loss (gain)                                             |   |   |   |   |   | 129    |    |   |   | 215     |    |   |   | (161 | ) |
| Realized foreign exchange gain on repayment of US dollar debt securities            |   |   |   |   |   | (210   | )       |   |   | (225    | )       |   |   | – |   |
| Equity loss from jointly controlled entity                                          |   |   |   |   |   | 9      |    |   |   | – |    |   |   | – |   |
|    Deferred income tax (recovery) expense                            |   |   |   |   |   | (30    | )       |   |   | 407     |    |   |   | 399 |   |
|    Horizon asset impairment provision                                |   |   | 6,10   |   |   |   | – |   |   |    | 396     |   |   |   | – |   |
| Insurance recovery – property damage                                          |   |   | 10     |   |   |   | – |   |   |    | (393    | )      |   |   | – |   |
| Other                                                                               |   |   |   |   |   |   | (47     | )      |   |    | (55     | )      |   |   | (8 | ) |
| Abandonment expenditures                                                            |   |   |   |   |   |   | (204    | )      |   |    | (213    | )      |   |   | (179 | ) |
| Net change in non-cash working capital                                              |   |   | 19     |   |   |   | 447     |   |   |    | (36     | )      |   |   | 136 |   |
|                                                                                |   |   |   |   |   |   | 6,209   |   |   |    | 6,243   |   |   |   | 6,282 |   |
| Financing activities                                                                |   |   |   |   |   |   |    |   |   |    |    |   |   |   |   |   |
| Issue (repayment) of bank credit facilities, net                                    |   |   |   |   |   |   | 172     |   |   |    | (647    | )      |   |   | (472 | ) |
| Issue (repayment) of medium-term notes, net                                         |   |   |   |   |   |   | 498     |   |   |    | – |   |   |   | (400 | ) |
| (Repayment) issue of US dollar debt securities, net                                 |   |   | 8      |   |   |   | (344    | )      |   |    | 621     |   |   |   | – |   |
| Issue of common shares on exercise of stock options                                 |   |   |   |   |   |   | 194     |   |   |    | 255     |   |   |   | 170 |   |
| Purchase of common shares under Normal Course Issuer Bid                            |   |   |   |   |   |   | (318    | )      |   |    | (104    | )      |   |   | (68 | ) |
| Dividends on common shares                                                          |   |   |   |   |   |   | (444    | )      |   |    | (378    | )      |   |   | (302 | ) |
| Net change in non-cash working capital                                              |   |   | 19     |   |   |   | (37     | )      |   |    | (15     | )      |   |   | (12 | ) |
|                                                                                |   |   |   |   |   |   | (279    | )      |   |    | (268    | )      |   |   | (1,084 | ) |
| Investing activities                                                                |   |   |   |   |   |   |    |   |   |    |    |   |   |   |   |   |
| Expenditures on exploration and evaluation assets and property, plant and equipment |   |   | 19     |   |   |   | (6,104  | )      |   |    | (6,201  | )      |   |   | (5,335 | ) |
| Investment in other long-term assets                                                |   |   |   |   |   |   | 2       |   |   |    | (321    | )      |   |   | – |   |
| Net change in non-cash working capital                                              |   |   | 19     |   |   |   | 175     |   |   |    | 559     |   |   |   | 146 |   |
|                                                                                |   |   |   |   |   |   | (5,927  | )      |   |    | (5,963  | )      |   |   | (5,189 | ) |
| Increase in cash and cash equivalents                                               |   |   |   |   |   |   | 3       |   |   |    | 12      |   |   |   | 9 |   |
| Cash and cash equivalents – beginning of year                                 |   |   |   |   |   |   | 34      |   |   |    | 22      |   |   |   | 13 |   |
| Cash and cash equivalents – end of year                                       |   |   |   |   |   | $      | 37      |   |   | $       | 34      |   |   | $ | 22 |   |
| Interest paid                                                                       |   |   |   |   |   | $      | 464     |   |   | $       | 456     |   |   | $ | 471 |   |
| Income taxes paid                                                                   |   |   |   |   |   | $      | 639     |   |   | $       | 706     |   |   | $ | 213 |   |

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|   | · | IFRS 10 “Consolidated Financial Statements” replaces IAS 27 “Consolidated and Separate Financial Statements” (IAS 27 still contains guidance for Separate Financial Statements) and Standing Interpretations Committee (“SIC”) 12 “Consolidation – Special Purpose Entities”. IFRS 10 establishes the principles for the presentation and preparation of consolidated financial statements. The standard defines the principle of control and establishes control as the basis for consolidation, as well as providing guidance on how to apply the control principle to determine whether an investor controls an investee. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | IFRS 11 “Joint Arrangements” replaces IAS 31 “Interests in Joint Ventures” and SIC 13 “Jointly Controlled Entities – Non-Monetary Contributions by Venturers”. The new standard defines two types of joint arrangements, joint operations and joint ventures. In a joint operation, the parties with joint control have rights to the assets and obligations for the liabilities of the joint arrangement and are required to recognize their proportionate interest in the assets, liabilities, revenues and expenses of the joint arrangement. In a joint venture, the parties have an interest in the net assets of the arrangement and are required to apply the equity method of accounting. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | IFRS 12 “Disclosure of Interests in Other Entities”. The standard includes disclosure requirements for investments in subsidiaries, joint arrangements, associates and unconsolidated structured entities. This standard does not impact the Company’s accounting for investments in other entities, but may impact the related disclosures. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Adoption of the above standards is not expected to result in a significant accounting change to the Company’s consolidated financial statements, but may impact the related disclosures. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                   |   | 2012   |   |   | 2011   |   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Product inventory      |   | $      | 315    |   |   | $      | 328 |   |
| Materials and supplies |   |   | 239    |   |   |   | 222 |   |
|                   |   | $      | 554    |   |   | $      | 550 |   |

|                                       |   | Exploration and Production |   |   | Oil SandsMining and Upgrading |   |    | Total           |   |
|--------------------------------------------|--------|----------------------------|--------|--------|-------------------------------|--------|---------|-----------------|--------|
|                                       |   | North America              |   |   | North Sea                     |   |    | Offshore Africa |   |   |   |   |   |   |   |
| Cost                                       |   |                       |   |   |                          |   |    |            |   |   |   |   |   |   |   |
| At December 31, 2010                       |   | $                          | 2,366  |   |                          | $      | 5       |            |   | $ | 31 |   |   | $ | – |   |   | $ | 2,402 |   |
| Additions                                  |   |                       | 309    |   |                          |   | 1       |            |   |   | 2 |   |   |   | – |   |   |   | 312 |   |
| Transfers to property, plant and equipment |   |                       | (233   | )      |                          |   | (6      | )               |   |   | – |   |   |   | – |   |   |   | (239 | ) |
| At December 31, 2011                       |   |                       | 2,442  |   |                          |   | – |            |   |   | 33 |   |   |   | – |   |   |   | 2,475 |   |
| Additions                                  |   |                       | 295    |   |                          |   | – |            |   |   | 14 |   |   |   | – |   |   |   | 309 |   |
| Transfers to property, plant and equipment |   |                       | (173   | )      |                          |   | – |            |   |   | – |   |   |   | – |   |   |   | (173 | ) |
| At December 31, 2012                       |   | $                          | 2,564  |   |                          | $      | – |            |   | $ | 47 |   |   | $ | – |   |   | $ | 2,611 |   |

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|                                       | Exploration and Production |   |      | Oil Sands Mining and Upgrading |   |           | Midstream |   |   | Head Office |    |   | Total  |   |
|--------------------------------------------|----------------------------|--------|-----------|--------------------------------|--------|----------------|-----------|--------|--------|-------------|---------|--------|--------|--------|
|                                       | North America              |   | North Sea |                           |   | OffshoreAfrica |      |   |   |        |    |   |   |   |   |   |   |   |   |
| Cost                                       |                       |   |      |                           |   |           |      |   |   |        |    |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2010                       |                       | $      | 40,861    |                           |   | $              | 3,813     |   |   | $           | 2,928   |   |   | $      | 14,169 |   |   | $ | 291 |   |   | $ | 216 |   |   | $ | 62,278 |   |
| Additions                                  |                       |   | 5,026     |                           |   |           | 235       |   |   |        | 76      |   |   |   | 1,545 |   |   |   | 7 |   |   |   | 18 |   |   |   | 6,907 |   |
| Transfers from E&E assets              |                       |   | 233       |                           |   |           | 6         |   |   |        | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 239 |   |
| Disposals/derecognitions (1)               |                       |   | –   |                           |   |           | –   |   |   |        | (29     | )      |   |   | (503 | ) |   |   | – |   |   |   | – |   |   |   | (532 | ) |
| Foreign exchange adjustments and other     |                       |   | –   |                           |   |           | 93        |   |   |        | 69      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 162 |   |
| At December 31, 2011                       |                       |   | 46,120    |                           |   |           | 4,147     |   |   |        | 3,044   |   |   |   | 15,211 |   |   |   | 298 |   |   |   | 234 |   |   |   | 69,054 |   |
| Additions                                  |                       |   | 4,160     |                           |   |           | 556       |   |   |        | 75      |   |   |   | 1,757 |   |   |   | 14 |   |   |   | 36 |   |   |   | 6,598 |   |
| Transfers from E&E assets              |                       |   | 173       |                           |   |           | –   |   |   |        | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 173 |   |
| Disposals/derecognitions                   |                       |   | (129      | )                              |   |           | (39       | )      |   |        | (8      | )      |   |   | (5 | ) |   |   | – |   |   |   | – |   |   |   | (181 | ) |
| Foreign exchange adjustments and other     |                       |   | –   |                           |   |           | (90       | )      |   |        | (66     | )      |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (156 | ) |
| At December 31, 2012                       |                       | $      | 50,324    |                           |   | $              | 4,574     |   |   | $           | 3,045   |   |   | $      | 16,963 |   |   | $ | 312 |   |   | $ | 270 |   |   | $ | 75,488 |   |
| Accumulated depletion and depreciation     |                       |   |      |                           |   |           |      |   |   |        |    |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2010                       |                       | $      | 18,895    |                           |   | $              | 2,205     |   |   | $           | 1,904   |   |   | $      | 607 |   |   | $ | 89 |   |   | $ | 149 |   |   | $ | 23,849 |   |
| Expense                                    |                       |   | 2,826     |                           |   |           | 248       |   |   |        | 242     |   |   |   | 266 |   |   |   | 7 |   |   |   | 15 |   |   |   | 3,604 |   |
| Impairment (1)                             |                       |   | –   |                           |   |           | –   |   |   |        | – |   |   |   | 396 |   |   |   | – |   |   |   | – |   |   |   | 396 |   |
| Disposals/derecognitions (1)               |                       |   | –   |                           |   |           | –   |   |   |        | (29     | )      |   |   | (503 | ) |   |   | – |   |   |   | – |   |   |   | (532 | ) |
| Foreign exchange adjustments and other     |                       |   | –   |                           |   |           | 59        |   |   |        | 35      |   |   |   | 10 |   |   |   | – |   |   |   | 2 |   |   |   | 106 |   |
| At December 31, 2011                       |                       |   | 21,721    |                           |   |           | 2,512     |   |   |        | 2,152   |   |   |   | 776 |   |   |   | 96 |   |   |   | 166 |   |   |   | 27,423 |   |
| Expense                                    |                       |   | 3,399     |                           |   |           | 294       |   |   |        | 165     |   |   |   | 447 |   |   |   | 7 |   |   |   | 16 |   |   |   | 4,328 |   |
| Disposals/derecognitions                   |                       |   | (129      | )                              |   |           | (39       | )      |   |        | (6      | )      |   |   | (5 | ) |   |   | – |   |   |   | – |   |   |   | (179 | ) |
| Foreign exchange adjustments and other     |                       |   | –   |                           |   |           | (58       | )      |   |        | (38     | )      |   |   | (16 | ) |   |   | – |   |   |   | – |   |   |   | (112 | ) |
| At December 31, 2012                       |                       | $      | 24,991    |                           |   | $              | 2,709     |   |   | $           | 2,273   |   |   | $      | 1,202 |   |   | $ | 103 |   |   | $ | 182 |   |   | $ | 31,460 |   |
| Net book value - at December 31, 2012 |                       | $      | 25,333    |                           |   | $              | 1,865     |   |   | $           | 772     |   |   | $      | 15,761 |   |   | $ | 209 |   |   | $ | 88 |   |   | $ | 44,028 |   |
|  - at December 31, 2011               |                       | $      | 24,399    |                           |   | $              | 1,635     |   |   | $           | 892     |   |   | $      | 14,435 |   |   | $ | 202 |   |   | $ | 68 |   |   | $ | 41,631 |   |

| (1) | During 2011, the Company derecognized certain property, plant and equipment related to the coker fire at Horizon in the amount of $411 million based on estimated replacement cost, net of accumulated depletion and depreciation of $15 million, resulting in an impairment charge of $396 million. For additional information, refer to note 10. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Horizon project costs not subject to depletion |
|------------------------------------------------|
| At December 31, 2012                           | $ | 2,066 |
| At December 31, 2011                           | $ | 1,443 |

|                                          |   | 2012   |   |   | 2011   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Investment in North West Redwater Partnership |   | $      | 310    |   |   | $      | 321 |   |
| Other                                         |   |   | 117    |   |   |   | 70 |   |
|                                          |   | $      | 427    |   |   | $      | 391 |   |

|                    |   | Redwater100% interest |   |   | Company50% interest |   |
|-------------------------|--------|-----------------------|--------|--------|---------------------|--------|
| Current assets          |   | $                     | 40     |   |                | $      | 20 |   |
| Non-current assets      |   | $                     | 810    |   |                | $      | 405 |   |
| Current liabilities     |   | $                     | 68     |   |                | $      | 34 |   |
| Non-current liabilities |   | $                     | 162    |   |                | $      | 81 |   |
| Partners’ equity  |   | $                     | 620    |   |                | $      | 310 |   |
| Equity loss             |   | $                     | 18     |   |                | $      | 9 |   |
|                    |   |                  |   |   |                |   |   |   |

----

|                                                                          |   | 2012   |    |   | 2011   |   |
|-------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Canadian dollar denominated debt                                              |   |   |    |   |   |   |
| Bank credit facilities                                                        |   | $      | 971     |   |   | $      | 796 |   |
| Medium-term notes                                                             |   |   |    |   |   |   |   |   |
| 4.50% unsecured debentures due January 23, 2013                               |   |   | 400     |   |   |   | 400 |   |
| 4.95% unsecured debentures due June 1, 2015                                   |   |   | 400     |   |   |   | 400 |   |
| 3.05% unsecured debentures due June 19, 2019                                  |   |   | 500     |   |   |   | – |   |
|                                                                          |   |   | 2,271   |   |   |   | 1,596 |   |
| US dollar denominated debt                                                    |   |   |    |   |   |   |   |   |
| US dollar debt securities                                                     |   |   |    |   |   |   |   |   |
| 5.45% due October 1, 2012 (2012 – US$ nil; 2011 – US$350 million) |   |   | – |   |   |   | 356 |   |
| 5.15% due February 1, 2013 (US$400 million)                                   |   |   | 398     |   |   |   | 406 |   |
| 1.45% due November 14, 2014 (US$500 million)                                  |   |   | 498     |   |   |   | 509 |   |
| 4.90% due December 1, 2014 (US$350 million)                                   |   |   | 348     |   |   |   | 356 |   |
| 6.00% due August 15, 2016 (US$250 million)                                    |   |   | 249     |   |   |   | 255 |   |
| 5.70% due May 15, 2017 (US$1,100 million)                                     |   |   | 1,094   |   |   |   | 1,119 |   |
| 5.90% due February 1, 2018 (US$400 million)                                   |   |   | 398     |   |   |   | 406 |   |
| 3.45% due November 15, 2021 (US$500 million)                                  |   |   | 498     |   |   |   | 509 |   |
| 7.20% due January 15, 2032 (US$400 million)                                   |   |   | 398     |   |   |   | 406 |   |
| 6.45% due June 30, 2033 (US$350 million)                                      |   |   | 348     |   |   |   | 356 |   |
| 5.85% due February 1, 2035 (US$350 million)                                   |   |   | 348     |   |   |   | 356 |   |
| 6.50% due February 15, 2037 (US$450 million)                                  |   |   | 448     |   |   |   | 458 |   |
| 6.25% due March 15, 2038 (US$1,100 million)                                   |   |   | 1,094   |   |   |   | 1,119 |   |
| 6.75% due February 1, 2039 (US$400 million)                                   |   |   | 398     |   |   |   | 406 |   |
| Less: original issue discount on US dollar debt securities (1)                |   |   | (20     | )      |   |   | (21 | ) |
|                                                                          |   |   | 6,497   |   |   |   | 6,996 |   |
| Fair value impact of interest rate swaps on US dollar debt securities (2)     |   |   | 19      |   |   |   | 31 |   |
|                                                                          |   |   | 6,516   |   |   |   | 7,027 |   |
| Long-term debt before transaction costs                                       |   |   | 8,787   |   |   |   | 8,623 |   |
| Less: transaction costs (1) (3)                                               |   |   | (51     | )      |   |   | (52 | ) |
|                                                                          |   |   | 8,736   |   |   |   | 8,571 |   |
| Less: current portion (1) (2) (4)                                             |   |   | 798     |   |   |   | 359 |   |
|                                                                          |   | $      | 7,938   |   |   | $      | 8,212 |   |

| (1) | The Company has included unamortized original issue discounts and directly attributable transaction costs in the carrying amount of the outstanding debt. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The carrying amount of US$350 million of 4.90% unsecured notes due December 2014 was adjusted by $19 million to reflect the fair value impact of hedge accounting. At December 31, 2011, the carrying amounts of US$350 million of 5.45% unsecured notes due October 2012 and US$350 million of 4.90% unsecured notes due December 2014 were adjusted by $31 million to reflect the fair value impact of hedge accounting. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Transaction costs primarily represent underwriting commissions charged as a percentage of the related debt offerings, as well as legal, rating agency and other professional fees. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Subsequent to December 31, 2012, $400 million of 4.50% medium-term notes due January 2013 and US$400 million of 5.15% unsecured notes due February 2013 were repaid. This indebtedness was retired utilizing cash flow from operating activities generated in excess of capital expenditures and available bank credit facilities as necessary. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | a $200 million demand credit facility; |
|--------|----------------------------------------|

| · | a revolving syndicated credit facility of $3,000 million maturing June 2015; |
|--------|------------------------------------------------------------------------------|

| · | a revolving syndicated credit facility of $1,500 million maturing June 2016; and |
|--------|----------------------------------------------------------------------------------|

| · | a £15 million demand credit facility related to the Company’s North Sea operations. |
|--------|------------------------------------------------------------------------------------------------|

| Year       |   | Repayment |   |
|------------|--------|-----------|--------|
| 2013       |   | $         | 798    |   |
| 2014       |   | $         | 846    |   |
| 2015       |   | $         | 593    |   |
| 2016       |   | $         | 1,027  |   |
| 2017       |   | $         | 1,094  |   |
| Thereafter |   | $         | 4,430  |   |

----

|                         |   | 2012   |   |   | 2011   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|
| Asset retirement obligations |   | $      | 4,266  |   |   | $      | 3,577 |   |
| Share-based compensation     |   |   | 154    |   |   |   | 432 |   |
| Risk management (note 17)    |   |   | 257    |   |   |   | 274 |   |
| Other                        |   |   | 87     |   |   |   | 85 |   |
|                         |   |   | 4,764  |   |   |   | 4,368 |   |
| Less: current portion        |   |   | 155    |   |   |   | 455 |   |
|                         |   | $      | 4,609  |   |   | $      | 3,913 |   |

|                                  |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Balance – beginning of year     |   | $      | 3,577  |   |   | $      | 2,624  |   |   | $ | 2,214 |   |
| Liabilities incurred                  |   |   | 51     |   |   |   | 42     |   |   |   | 26 |   |
| Liabilities acquired                  |   |   | 12     |   |   |   | 79     |   |   |   | 22 |   |
| Liabilities settled                   |   |   | (204   | )      |   |   | (213   | )      |   |   | (179 | ) |
| Asset retirement obligation accretion |   |   | 151    |   |   |   | 130    |   |   |   | 123 |   |
| Revision of estimates                 |   |   | 384    |   |   |   | 472    |   |   |   | 49 |   |
| Change in discount rate               |   |   | 315    |   |   |   | 422    |   |   |   | 411 |   |
| Foreign exchange adjustments          |   |   | (20    | )      |   |   | 21     |   |   |   | (42 | ) |
| Balance – end of year           |   | $      | 4,266  |   |   | $      | 3,577  |   |   | $ | 2,624 |   |

|                           |   | 2012   |   |   | 2011   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| Exploration and Production     |   |   |   |   |   |   |
| North America                  |   | $      | 2,079  |   |   | $      | 1,862 |   |
| North Sea                      |   |   | 1,030  |   |   |   | 723 |   |
| Offshore Africa                |   |   | 218    |   |   |   | 192 |   |
| Oil Sands Mining and Upgrading |   |   | 937    |   |   |   | 798 |   |
| Midstream                      |   |   | 2      |   |   |   | 2 |   |
|                           |   | $      | 4,266  |   |   | $      | 3,577 |   |

----

|                                                           |   | 2012   |   |   | 2011   |   |    | 2010   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| Balance – beginning of year                              |   | $      | 432    |   |   | $      | 663     |   |   | $ | 622 |   |
| Share-based compensation (recovery) expense                    |   |   | (214   | )      |   |   | (102    | )      |   |   | 203 |   |
| Cash payment for stock options surrendered                     |   |   | (7     | )      |   |   | (14     | )      |   |   | (45 | ) |
| Transferred to common shares                                   |   |   | (45    | )      |   |   | (115    | )      |   |   | (149 | ) |
| (Recovered from) capitalized to Oil Sands Mining and Upgrading |   |   | (12    | )      |   |   | – |   |   |   | 32 |   |
| Balance – end of year                                    |   |   | 154    |   |   |   | 432     |   |   |   | 663 |   |
| Less: current portion                                          |   |   | 129    |   |   |   | 384     |   |   |   | 623 |   |
|                                                           |   | $      | 25     |   |   | $      | 48      |   |   | $ | 40 |   |

|                           |   | 2012      |   |   | 2011      |   |   | 2010      |   |
|--------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Fair value                     |   | $         | 4.60   |   |      | $      | 10.84  |      |   | $ | 16.49 |   |
| Share price                    |   | $         | 28.64  |   |      | $      | 38.15  |      |   | $ | 44.35 |   |
| Expected volatility            |   |      | 32.6%  |   |      |   | 36.9%  |      |   |   | 33.5% |   |
| Expected dividend yield        |   |      | 1.5%   |   |      |   | 0.9%   |      |   |   | 0.7% |   |
| Risk free interest rate        |   |      | 1.3%   |   |      |   | 1.1%   |      |   |   | 1.9% |   |
| Expected forfeiture rate       |   |      | 4.2%   |   |      |   | 4.7%   |      |   |   | 5.0% |   |
| Expected stock option life (1) |   | 4.5 years |   |   | 4.5 years |   |   | 4.5 years |   |

| (1) | At original time of grant. |
|-----|----------------------------|

----

|                                                 |   | 2012   |    |   | 2011   |   |   | 2010   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Current corporate income tax – North America   |   | $      | 366     |   |   | $      | 315    |   |   | $ | 431 |   |
| Current corporate income tax – North Sea       |   |   | 115     |   |   |   | 245    |   |   |   | 203 |   |
| Current corporate income tax – Offshore Africa |   |   | 206     |   |   |   | 140    |   |   |   | 64 |   |
| Current PRT(1) expense – North Sea             |   |   | 44      |   |   |   | 135    |   |   |   | 68 |   |
| Other taxes                                          |   |   | 16      |   |   |   | 25     |   |   |   | 23 |   |
| Current income tax expense                           |   |   | 747     |   |   |   | 860    |   |   |   | 789 |   |
| Deferred corporate income tax expense                |   |   | – |   |   |   | 412    |   |   |   | 408 |   |
| Deferred PRT(1) recovery – North Sea      |   |   | (30     | )      |   |   | (5     | )      |   |   | (9 | ) |
| Deferred income tax (recovery) expense               |   |   | (30     | )      |   |   | 407    |   |   |   | 399 |   |
| Income tax expense                                   |   | $      | 717     |   |   | $      | 1,267  |   |   | $ | 1,188 |   |

| (1) | Petroleum Revenue Tax. |
|-----|------------------------|

|                                                                |   | 2012   |    |   | 2011   |   |    | 2010   |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Canadian statutory income tax rate                                  |   |   | 25.1    | %      |   |   | 26.6    | %      |   |   | 28.1 | % |
| Income tax provision at statutory rate                              |   | $      | 655     |   |   | $      | 1,040   |   |   | $ | 802 |   |
| Effect on income taxes of:                                          |   |   |    |   |   |   |    |   |   |   |   |   |
| UK PRT and other taxes                                              |   |   | 30      |   |   |   | 155     |   |   |   | 82 |   |
| Impact of deductible UK PRT and other taxes on corporate income tax |   |   | (13     | )      |   |   | (77     | )      |   |   | (30 | ) |
| Foreign and domestic tax rate differentials                         |   |   | 63      |   |   |   | 84      |   |   |   | 15 |   |
| Non-taxable portion of foreign exchange (gain) loss                 |   |   | (2      | )      |   |   | 6       |   |   |   | (17 | ) |
| Stock options exercised for common shares                           |   |   | (56     | )      |   |   | (31     | )      |   |   | 217 |   |
| Income tax rate and other legislative changes                       |   |   | 58      |   |   |   | 104     |   |   |   | – |   |
| Non-deductible Offshore Africa impairment charge                    |   |   | – |   |   |   | – |   |   |   | 130 |   |
| Other                                                               |   |   | (18     | )      |   |   | (14     | )      |   |   | (11 | ) |
| Income tax expense                                                  |   | $      | 717     |   |   | $      | 1,267   |   |   | $ | 1,188 |   |

----

|                                                                |   | 2012   |   |   | 2011   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred income tax liabilities                                     |   |   |   |   |   |   |
| Property, plant and equipment and exploration and evaluation assets |   | $      | 8,834  |   |   | $      | 8,404 |   |
| Timing of partnership items                                         |   |   | 831    |   |   |   | 1,065 |   |
| Unrealized foreign exchange gain on long-term debt                  |   |   | 142    |   |   |   | 149 |   |
| Deferred PRT                                                        |   |   | 42     |   |   |   | 74 |   |
|                                                                |   |   | 9,849  |   |   |   | 9,692 |   |
| Deferred income tax assets                                          |   |   |   |   |   |   |   |   |
| Asset retirement obligations                                        |   |   | (1,362 | )      |   |   | (1,136 | ) |
| Loss carryforwards                                                  |   |   | (119   | )      |   |   | (119 | ) |
| Unrealized risk management activities                               |   |   | (36    | )      |   |   | (40 | ) |
| Other                                                               |   |   | (158   | )      |   |   | (176 | ) |
|                                                                |   |   | (1,675 | )      |   |   | (1,471 | ) |
| Net deferred income tax liability                                   |   | $      | 8,174  |   |   | $      | 8,221 |   |

|                                                                |   | 2012   |    |   | 2011   |   |    | 2010   |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Property, plant and equipment and exploration and evaluation assets |   | $      | 465     |   |   | $      | 662     |   |   | $ | 684 |   |
| Timing of partnership items                                         |   |   | (234    | )      |   |   | 77      |   |   |   | (139 | ) |
| Unrealized foreign exchange (gain) loss on long-term debt           |   |   | (7      | )      |   |   | (45     | )      |   |   | 42 |   |
| Unrealized risk management activities                               |   |   | – |   |   |   | 44      |   |   |   | (8 | ) |
| Asset retirement obligations                                        |   |   | (238    | )      |   |   | (321    | )      |   |   | (127 | ) |
| Share-based compensation                                            |   |   | – |   |   |   | – |   |   |   | 132 |   |
| Loss carryforwards                                                  |   |   | – |   |   |   | 25      |   |   |   | (60 | ) |
| Deferred PRT                                                        |   |   | (30     | )      |   |   | (5      | )      |   |   | (9 | ) |
| Other                                                               |   |   | 14      |   |   |   | (30     | )      |   |   | (116 | ) |
|                                                                |   | $      | (30     | )      |   | $      | 407     |   |   | $ | 399 |   |

|                                                                          |   | 2012   |    |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Balance – beginning of year                                             |   | $      | 8,221   |   |   | $      | 7,788  |   |   | $ | 7,462 |   |
| Deferred income tax (recovery) expense                                        |   |   | (30     | )      |   |   | 407    |   |   |   | 399 |   |
| Deferred income tax expense (recovery) included in other comprehensive income |   |   | 4       |   |   |   | 12     |   |   |   | (14 | ) |
| Foreign exchange adjustments                                                  |   |   | (21     | )      |   |   | 20     |   |   |   | (59 | ) |
| Other                                                                         |   |   | – |   |   |   | (6     | )      |   |   | – |   |
| Balance – end of year                                                   |   | $      | 8,174   |   |   | $      | 8,221  |   |   | $ | 7,788 |   |

----

----

|                                                                         |   | 2012                        |      |   | 2011   |   |
|------------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|--------|--------|
| Common shares                                                                |   | Numberof shares (thousands) |      |   | Amount |   |   | Numberof shares (thousands) |   |   | Amount |   |
| Balance – beginning of year                                            |   |                        | 1,096,460 |   |   | $      | 3,507 |   |   |   | 1,090,848 |   |   | $ | 3,147 |   |
| Issued upon exercise of stock options                                        |   |                        | 6,625     |   |   |   | 194 |   |   |   | 8,683 |   |   |   | 255 |   |
| Previously recognized liability on stock options exercised for common shares |   |                        | –   |   |   |   | 45 |   |   |   | – |   |   |   | 115 |   |
| Purchase of common shares under Normal Course Issuer Bid                     |   |                        | (11,013   | )      |   |   | (37 | ) |   |   | (3,071 | ) |   |   | (10 | ) |
| Balance – end of year                                                  |   |                        | 1,092,072 |   |   | $      | 3,709 |   |   |   | 1,096,460 |   |   | $ | 3,507 |   |

----

|                                  |   | 2012                      |   |   | 2011                            |   |
|---------------------------------------|--------|---------------------------|--------|--------|---------------------------------|--------|
|                                  |   | Stock options (thousands) |   |   | Weighted average exercise price |   |   | Stock options (thousands) |   |   | Weighted averageexercise price |   |
| Outstanding – beginning of year |   |                      | 73,486 |   |                            | $      | 34.85 |   |   |   | 66,844 |   |   | $ | 33.31 |   |
| Granted (1)                           |   |                      | 14,779 |   |                            | $      | 29.27 |   |   |   | 19,516 |   |   | $ | 37.54 |   |
| Surrendered for cash settlement       |   |                      | (998   | )      |                            | $      | 29.82 |   |   |   | (1,124 | ) |   | $ | 29.84 |   |
| Exercised for common shares           |   |                      | (6,625 | )      |                            | $      | 29.19 |   |   |   | (8,683 | ) |   | $ | 29.34 |   |
| Forfeited (1)                         |   |                      | (6,895 | )      |                            | $      | 36.68 |   |   |   | (3,067 | ) |   | $ | 35.87 |   |
| Outstanding – end of year       |   |                      | 73,747 |   |                            | $      | 34.13 |   |   |   | 73,486 |   |   | $ | 34.85 |   |
| Exercisable – end of year       |   |                      | 29,366 |   |                            | $      | 33.73 |   |   |   | 26,486 |   |   | $ | 32.13 |   |

| (1) | Subsequent to December 31, 2012, 3,479,000 stock options at a weighted average exercise price of $28.74 were granted and 8,228,000 stock options at a weighted average exercise price of $35.27 were forfeited. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |           |   | Stock options outstanding             |   |   | Stock options exercisable               |   |
|--------------------------|----------------|--------|---------------------------------------|--------|--------|-----------------------------------------|--------|
| Range of exercise prices |           |   | Stock options outstanding (thousands) |   |   | Weighted average remaining term (years) |   |   | Weighted average exercise price |   |   | Stock options exercisable (thousands) |   |   | Weighted average exerciseprice |   |
| $                        | 22.98 - $24.99 |   |                                  |   | 8,690  |                                    |   |   | 1.18 |   |   | $ | 23.17 |   |   |   | 6,478 |   |   | $ | 23.15 |   |
| $                        | 25.00 - $29.99 |   |                                  |   | 9,993  |                                    |   |   | 5.17 |   |   | $ | 28.02 |   |   |   | 98 |   |   | $ | 29.09 |   |
| $                        | 30.00 - $34.99 |   |                                  |   | 17,019 |                                    |   |   | 3.22 |   |   | $ | 33.45 |   |   |   | 6,289 |   |   | $ | 34.07 |   |
| $                        | 35.00 - $39.99 |   |                                  |   | 25,583 |                                    |   |   | 2.70 |   |   | $ | 36.48 |   |   |   | 11,926 |   |   | $ | 35.80 |   |
| $                        | 40.00 - $44.99 |   |                                  |   | 10,432 |                                    |   |   | 3.16 |   |   | $ | 42.23 |   |   |   | 3,757 |   |   | $ | 42.24 |   |
| $                        | 45.00 - $46.25 |   |                                  |   | 2,030  |                                    |   |   | 2.79 |   |   | $ | 45.68 |   |   |   | 818 |   |   | $ | 46.22 |   |
|                     |           |   |                                  |   | 73,747 |                                    |   |   | 3.04 |   |   | $ | 34.13 |   |   |   | 29,366 |   |   | $ | 33.73 |   |

----

|                                                            |   | 2012   |   |   | 2011   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Derivative financial instruments designated as cash flow hedges |   | $      | 86     |   |   | $      | 62 |   |
| Foreign currency translation adjustment                         |   |   | (28    | )      |   |   | (36 | ) |
|                                                            |   | $      | 58     |   |   | $      | 26 |   |

|                             |   | 2012   |   |   | 2011   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Long-term debt (1)               |   | $      | 8,736  |   |   | $      | 8,571 |   |
| Total shareholders’ equity |   | $      | 24,283 |   |   | $      | 22,898 |   |
| Debt to book capitalization      |   |   | 26%    |   |   |   | 27% |   |

| (1) | Includes the current portion of long-term debt. |
|-----|-------------------------------------------------|

|                                                                             |            | 2012   |      |   | 2011   |   |      | 2010   |   |
|----------------------------------------------------------------------------------|-----------------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Weighted average common shares outstanding – basic (thousands of shares)   |            |   | 1,097,084 |   |   |   | 1,095,582 |   |   |   | 1,088,096 |   |
| Effect of dilutive stock options (thousands of shares)                           |            |   | 2,435     |   |   |   | 7,000     |   |   |   | 7,552 |   |
| Weighted average common shares outstanding – diluted (thousands of shares) |            |   | 1,099,519 |   |   |   | 1,102,582 |   |   |   | 1,095,648 |   |
| Net earnings                                                                     |            | $      | 1,892     |   |   | $      | 2,643     |   |   | $ | 1,673 |   |
| Net earnings per common share                                                    | – basic   |   | $         | 1.72   |   |   | $         | 2.41   |   |   | $ | 1.54 |   |
|                                                                             | – diluted |   | $         | 1.72   |   |   | $         | 2.40   |   |   | $ | 1.53 |   |

----

|                                           |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Interest expense:                              |   |   |   |   |   |   |   |   |   |
| Long-term debt                                 |   | $      | 464    |   |   | $      | 450    |   |   | $ | 485 |   |
|    Other financing costs        |   |   | (1     | )      |   |   | (4     | )      |   |   | (6 | ) |
|                                           |   |   | 463    |   |   |   | 446    |   |   |   | 479 |   |
| Less: amounts capitalized on qualifying assets |   |   | 98     |   |   |   | 59     |   |   |   | 28 |   |
| Total interest and other financing costs       |   |   | 365    |   |   |   | 387    |   |   |   | 451 |   |
| Total interest income                          |   |   | (1     | )      |   |   | (14    | )      |   |   | (3 | ) |
| Net interest and other financing costs         |   | $      | 364    |   |   | $      | 373    |   |   | $ | 448 |   |

|                        |   | 2012                                   |    |
|-----------------------------|--------|----------------------------------------|---------|
| Asset (liability)           |   | Loans and receivablesat amortized cost |    |   | Fair value throughprofit or loss |   |   | Derivatives used for hedging |   |   | Financial liabilities at amortizedcost |   |   | Total |   |
| Accounts receivable         |   | $                                      | 1,197   |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 1,197 |   |
| Accounts payable            |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (465 | ) |   |   | (465 | ) |
| Accrued liabilities         |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (2,273 | ) |   |   | (2,273 | ) |
| Other long-term liabilities |   |                                   | – |   |   |   | 4 |   |   |   | (261 | ) |   |   | (79 | ) |   |   | (336 | ) |
| Long-term debt (1)          |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (8,736 | ) |   |   | (8,736 | ) |
|                        |   | $                                      | 1,197   |   |   | $ | 4 |   |   | $ | (261 | ) |   | $ | (11,553 | ) |   | $ | (10,613 | ) |

|                        |   | 2011                                   |    |
|-----------------------------|--------|----------------------------------------|---------|
| Asset (liability)           |   | Loans and receivablesat amortized cost |    |   | Fair value throughprofit or loss |   |   | Derivatives used for hedging |   |   | Financial liabilities at amortizedcost |   |   | Total |   |
| Accounts receivable         |   | $                                      | 2,077   |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |   | $ | 2,077 |   |
| Accounts payable            |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (526 | ) |   |   | (526 | ) |
| Accrued liabilities         |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (2,347 | ) |   |   | (2,347 | ) |
| Other long-term liabilities |   |                                   | – |   |   |   | (38 | ) |   |   | (236 | ) |   |   | (75 | ) |   |   | (349 | ) |
| Long-term debt (1)          |   |                                   | – |   |   |   | – |   |   |   | – |   |   |   | (8,571 | ) |   |   | (8,571 | ) |
|                        |   | $                                      | 2,077   |   |   | $ | (38 | ) |   | $ | (236 | ) |   | $ | (11,519 | ) |   | $ | (9,716 | ) |

| (1) | Includes the current portion of long-term debt. |
|-----|-------------------------------------------------|

----

|                                  |   | 2012            |   |
|---------------------------------------|--------|-----------------|--------|
|                                  |   | Carrying amount |   |   | Fair value |   |
| Asset (liability) (1)                 |   |            |   |   | Level 1 |   |   | Level 2 |   |
| Other long-term liabilities           |   | $               | (257   | ) |   | $ | – |   |   | $ | (257 | ) |
| Fixed rate long-term debt (2) (3) (4) |   |            | (7,765 | ) |   |   | (9,118 | ) |   |   | – |   |
|                                  |   | $               | (8,022 | ) |   | $ | (9,118 | ) |   | $ | (257 | ) |

|                                  |   | 2011            |   |
|---------------------------------------|--------|-----------------|--------|
|                                  |   | Carrying amount |   |   | Fair value |   |
| Asset (liability) (1)                 |   |            |   |   | Level 1 |   |   | Level 2 |   |
| Other long-term liabilities           |   | $               | (274   | ) |   | $ | – |   |   | $ | (274 | ) |
| Fixed rate long-term debt (2) (3) (4) |   |            | (7,775 | ) |   |   | (9,120 | ) |   |   | – |   |
|                                  |   | $               | (8,049 | ) |   | $ | (9,120 | ) |   | $ | (274 | ) |

| (1) | Excludes financial assets and liabilities where the carrying amount approximates fair value due to the liquid nature of the asset or liability (cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The carrying amount of US$350 million of 4.90% unsecured notes due December 2014 was adjusted by $19 million to reflect the fair value impact of hedge accounting. At December 31, 2011, the carrying amounts of US$350 million of 5.45% unsecured notes due October 2012 and US$350 million of 4.90% unsecured notes due December 2014 were adjusted by $31 million to reflect the fair value impact of hedge accounting. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The fair value of fixed rate long-term debt has been determined based on quoted market prices. |
|-----|------------------------------------------------------------------------------------------------|

| (4) | Includes the current portion of long-term debt. |
|-----|-------------------------------------------------|

| Asset (liability)                              |   | 2012   |   |   | 2011   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Derivatives held for trading                   |   |   |   |   |   |   |
| Crude oil price collars                        |   | $      | (16    | )      |   | $      | (13 | ) |
| Foreign currency forward contracts             |   |   | 20     |   |   |   | (25 | ) |
| Cash flow hedges                               |   |   |   |   |   |   |   |   |
| Cross currency swaps                           |   |   | (261   | )      |   |   | (236 | ) |
|                                           |   | $      | (257   | )      |   | $      | (274 | ) |
|                                           |   |   |   |   |   |   |   |   |
| Included within:                               |   |   |   |   |   |   |   |   |
| Current portion of other long-term liabilities |   | $      | (4     | )      |   | $      | (43 | ) |
| Other long-term liabilities                    |   |   | (253   | )      |   |   | (231 | ) |
|                                           |   | $      | (257   | )      |   | $      | (274 | ) |

----

|                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Asset (liability)                                                                         |   | 2012   |   |   | 2011   |   |
| Balance – beginning of year                                                         |   | $      | (274   | )      |   | $      | (485 | ) |
| Net change in fair value of outstanding derivative financial instruments attributable to: |   |   |   |   |   |   |   |   |
| Risk management activities                                                                |   |   | 42     |   |   |   | 128 |   |
| Foreign exchange                                                                          |   |   | (53    | )      |   |   | 42 |   |
| Other comprehensive income                                                                |   |   | 28     |   |   |   | 41 |   |
| Balance – end of year                                                               |   |   | (257   | )      |   |   | (274 | ) |
| Less: current portion                                                                     |   |   | (4     | )      |   |   | (43 | ) |
|                                                                                      |   | $      | (253   | )      |   | $      | (231 | ) |

|                                     |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net realized risk management loss (gain) |   | $      | 162    |   |   | $      | 101    |   |   | $ | (110 | ) |
| Net unrealized risk management gain      |   |   | (42    | )      |   |   | (128   | )      |   |   | (24 | ) |
|                                     |   | $      | 120    |   |   | $      | (27    | )      |   | $ | (134 | ) |

| a) | Market risk |
|----|-------------|

|              | Remaining term | Volume  | Weighted average price | Index        |
|-------------------|----------------|---------|------------------------|--------------|
| Crude oil         |           |    |                   |         |   |   |   |   |
| Price collars (1) | Jan 2013       | – | Jun 2013               | 50,000 bbl/d | US$80.00 | – | US$145.07 | Brent |
|              | Jan 2013       | – | Dec 2013               | 50,000 bbl/d | US$80.00 | – | US$135.59 | Brent |
|              | Jan 2013       | – | Dec 2013               | 50,000 bbl/d | US$80.00 | – | US$97.73 | WTI |
|              | Jan 2013       | – | Dec 2013               | 50,000 bbl/d | US$80.00 | – | US$110.34 | WTI |

| (1) | Subsequent to December 31, 2012, the Company entered into an additional 50,000 bbl/d of US$80 – US$111.05 WTI collars for the period April to December 2013 and an additional 50,000 bbl/d of US$80 – US$132.18 Brent collars for the period July to December 2013. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           | Remaining term | Amount  | Exchange rate (US$/C$) | Interest rate (US$) | Interest rate (C$) |
|----------------|----------------|---------|------------------------|---------------------|--------------------|
| Cross currency |           |    |                   |                |               |   |   |
| Swaps          | Jan 2013       | – | Aug 2016               | US$250              | 1.116              | 6.00% | 5.40% |
|           | Jan 2013       | – | May 2017               | US$1,100            | 1.170              | 5.70% | 5.10% |
|           | Jan 2013       | – | Nov 2021               | US$500              | 1.022              | 3.45% | 3.96% |
|           | Jan 2013       | – | Mar 2038               | US$550              | 1.170              | 6.25% | 5.76% |

|    Increase (decrease) |   | Impact onnet earnings |   |   | Impact on other comprehensive income |   |
|---------------------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
| Commodity price risk                  |   |                  |   |   |                                 |   |
| Increase Brent US$1.00/bbl            |   | $                     | (3     | )      |                                 | $      | – |   |
| Decrease Brent US$1.00/bbl            |   | $                     | 3      |   |                                 | $      | – |   |
| Increase WTI US$1.00/bbl              |   | $                     | (13    | )      |                                 | $      | – |   |
| Decrease WTI US$1.00/bbl              |   | $                     | 13     |   |                                 | $      | – |   |
| Interest rate risk                    |   |                  |   |   |                                 |   |   |   |
| Increase interest rate 1%             |   | $                     | (5     | )      |                                 | $      | 17 |   |
| Decrease interest rate 1%             |   | $                     | 5      |   |                                 | $      | (43 | ) |
| Foreign currency exchange rate risk   |   |                  |   |   |                                 |   |   |   |
| Increase exchange rate by US$0.01     |   | $                     | (8     | )      |                                 | $      | – |   |
| Decrease exchange rate by US$0.01     |   | $                     | 8      |   |                                 | $      | – |   |

----

| b) | Credit risk |
|----|-------------|

| c) | Liquidity risk |
|----|----------------|

|                        |   | Less than1 year |   |   | 1 to less than2 years |   |    | 2 to less than5 years |   |   | Thereafter |   |
|-----------------------------|--------|-----------------|--------|--------|-----------------------|--------|---------|-----------------------|--------|--------|------------|--------|
| Accounts payable            |   | $               | 465    |   |                  | $      | – |                  |   | $      | –    |   |   | $ | – |   |
| Accrued liabilities         |   | $               | 2,273  |   |                  | $      | – |                  |   | $      | –    |   |   | $ | – |   |
| Risk management             |   | $               | 4      |   |                  | $      | 53      |                  |   | $      | 123        |   |   | $ | 77 |   |
| Other long-term liabilities |   | $               | 22     |   |                  | $      | 24      |                  |   | $      | 33         |   |   | $ | – |   |
| Long-term debt (1)          |   | $               | 798    |   |                  | $      | 846     |                  |   | $      | 2,714      |   |   | $ | 4,430 |   |

| (1) | Long-term debt represents principal repayments only and does not reflect fair value adjustments, interest, original issue discounts or transaction costs. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | 2013 |   |   | 2014   |   |   | 2015   |   |   | 2016 |   |   | 2017 |   |   | Thereafter |   |
|-----------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|------|--------|--------|------------|--------|
| Product transportation and pipeline                       |   | $    | 231    |   |   | $      | 218    |   |   | $      | 204  |   |   | $    | 135    |   |       | $      | 117 |   |   | $ | 788 |   |
| Offshore equipment operating leases and offshore drilling |   | $    | 156    |   |   | $      | 135    |   |   | $      | 104  |   |   | $    | 76     |   |       | $      | 57 |   |   | $ | 65 |   |
| Office leases                                             |   | $    | 33     |   |   | $      | 34     |   |   | $      | 32   |   |   | $    | 33     |   |       | $      | 35 |   |   | $ | 262 |   |
| Other                                                     |   | $    | 173    |   |   | $      | 95     |   |   | $      | 43   |   |   | $    | 10     |   |       | $      | 2 |   |   | $ | 7 |   |

----

|                                    |   |  2012 |   |   |  2011 |   |   |  2010 |   |
|-----------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Changes in non-cash working capital     |   |       |   |   |       |   |   |       |   |
| Accounts receivable                     |   | $          | 869    |   |       | $      | (198   | )          |   | $ | (321 | ) |
| Inventory                               |   |       | (9     | )      |       |   | (72    | )          |   |   | (35 | ) |
| Prepaids and other                      |   |       | (8     | )      |       |   | (17    | )          |   |   | 18 |   |
| Accounts payable                        |   |       | (64    | )      |       |   | 251    |       |   |   | 36 |   |
| Accrued liabilities                     |   |       | (138   | )      |       |   | 627    |       |   |   | 232 |   |
| Current income tax liabilities          |   |       | (65    | )      |       |   | (83    | )          |   |   | 340 |   |
| Net changes in non-cash working capital |   | $          | 585    |   |       | $      | 508    |       |   | $ | 270 |   |
| Relating to:                            |   |       |   |   |       |   |   |       |   |   |   |   |
| Operating activities                    |   | $          | 447    |   |       | $      | (36    | )          |   | $ | 136 |   |
| Financing activities                    |   |       | (37    | )      |       |   | (15    | )          |   |   | (12 | ) |
| Investing activities                    |   |       | 175    |   |       |   | 559    |       |   |   | 146 |   |
|                                    |   | $          | 585    |   |       | $      | 508    |       |   | $ | 270 |   |

|                                                                                    |   |   | 2012  |   |   |   | 2011  |   |   |   | 2010  |   |
|-----------------------------------------------------------------------------------------|--------|--------|-------|--------|--------|--------|-------|--------|--------|--------|-------|--------|
| Expenditures on exploration and evaluation assets                                       |   | $      | 309   |   |   | $      | 312   |   |   | $      | 572   |   |
| Expenditures on property, plant and equipment                                           |   |   | 5,804 |   |   |   | 5,895 |   |   |   | 4,771 |   |
| Net proceeds on sale of property, plant and equipment                                   |   |   | (9    | )      |   |   | (6    | )      |   |   | (8    | )      |
| Net expenditures on exploration and evaluation assets and property, plant and equipment |   | $      | 6,104 |   |   | $      | 6,201 |   |   | $      | 5,335 |   |

----

|                                                                         | Exploration and Production |   |
|------------------------------------------------------------------------------|----------------------------|--------|
|                                                                         | North America              |   |   | North Sea |   |   | Offshore Africa |   |
|                                                                         | 2012                       |   |   | 2011 |   |   | 2010 |   |   | 2012 |   |   | 2011 |   |   | 2010 |   |   | 2012 |   |   | 2011 |   |   | 2010 |   |
| Segmented product sales                                                      |                       | $      | 11,607 |   |   | $ | 11,806 |   |   | $ | 9,713 |   |   | $ | 928 |   |   | $ | 1,224 |   |   | $ | 1,058 |   |   | $ | 773 |   |   | $ | 946 |   |   | $ | 884 |   |
| Less: royalties                                                              |                       |   | (1,268 | ) |   |   | (1,538 | ) |   |   | (1,267 | ) |   |   | (2 | ) |   |   | (3 | ) |   |   | (2 | ) |   |   | (199 | ) |   |   | (114 | ) |   |   | (62 | ) |
| Segmented revenue                                                            |                       |   | 10,339 |   |   |   | 10,268 |   |   |   | 8,446 |   |   |   | 926 |   |   |   | 1,221 |   |   |   | 1,056 |   |   |   | 574 |   |   |   | 832 |   |   |   | 822 |   |
| Segmented expenses                                                           |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                                                                   |                       |   | 2,165 |   |   |   | 1,933 |   |   |   | 1,675 |   |   |   | 402 |   |   |   | 412 |   |   |   | 387 |   |   |   | 163 |   |   |   | 186 |   |   |   | 167 |   |
| Transportation and blending                                                  |                       |   | 2,735 |   |   |   | 2,301 |   |   |   | 1,761 |   |   |   | 10 |   |   |   | 13 |   |   |   | 8 |   |   |   | 1 |   |   |   | 1 |   |   |   | 1 |   |
| Depletion, depreciation    and amortization (1)                    |                       |   | 3,413 |   |   |   | 2,840 |   |   |   | 2,484 |   |   |   | 296 |   |   |   | 249 |   |   |   | 297 |   |   |   | 165 |   |   |   | 242 |   |   |   | 935 |   |
| Asset retirement obligation accretion                                        |                       |   | 85 |   |   |   | 70 |   |   |   | 52 |   |   |   | 27 |   |   |   | 33 |   |   |   | 36 |   |   |   | 7 |   |   |   | 7 |   |   |   | 7 |   |
| Realized risk management activities                                          |                       |   | 162 |   |   |   | 101 |   |   |   | (110 | ) |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Horizon asset    impairment provision                         |                       |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Insurance recovery –    property damage (note 10)            |                       |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Insurance recovery –    business interruption (note 10) |                       |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Equity loss from jointly controlled entity                                   |                       |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Total segmented expenses                                                     |                       |   | 8,560 |   |   |   | 7,245 |   |   |   | 5,862 |   |   |   | 735 |   |   |   | 707 |   |   |   | 728 |   |   |   | 336 |   |   |   | 436 |   |   |   | 1,110 |   |
| Segmented earnings (loss) before the following                          |                       | $      | 1,779 |   |   | $ | 3,023 |   |   | $ | 2,584 |   |   | $ | 191 |   |   | $ | 514 |   |   | $ | 328 |   |   | $ | 238 |   |   | $ | 396 |   |   | $ | (288 | ) |
| Non–segmented expenses                                                 |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Administration                                                               |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation                                                     |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other financing costs                                           |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized risk management activities                                        |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange (gain) loss                                                 |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total non–segmented expenses                                           |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings before taxes                                                        |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current income tax expense                                                   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred income tax (recovery) expense                        |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings                                                                 |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|  Oil Sands Mining and Upgrading |    |   | Midstream |   |    |  Inter–segmentelimination and other |   |   |   Total |   |
|--------------------------------------|---------|--------|-----------|--------|---------|------------------------------------------------|--------|--------|--------------|--------|
|                                 | 2012    |   |      |   | 2011    |                                           |   |   | 2010         |   |   |   | 2012 |   |   |   | 2011 |   |   |   | 2010 |   |   |   | 2012 |   |   |   | 2011 |   |   |   | 2010 |   |   |   | 2012 |   |   |   | 2011 |   |   |   | 2010 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                    | 2,871   |   |      | $      | 1,521   |                                           |   | $      | 2,649        |   |   | $ | 93 |   |   | $ | 88 |   |   | $ | 79 |   |   | $ | (77 | ) |   | $ | (78 | ) |   | $ | (61 | ) |   | $ | 16,195 |   |   | $ | 15,507 |   |   | $ | 14,322 |   |
|                                 | (137    | )      |      |   | (60     | )                                              |   |   | (90          | )      |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (1,606 | ) |   |   | (1,715 | ) |   |   | (1,421 | ) |
|                                 | 2,734   |   |      |   | 1,461   |                                           |   |   | 2,559        |   |   |   | 93 |   |   |   | 88 |   |   |   | 79 |   |   |   | (77 | ) |   |   | (78 | ) |   |   | (61 | ) |   |   | 14,589 |   |   |   | 13,792 |   |   |   | 12,901 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 | 1,504   |   |      |   | 1,127   |                                           |   |   | 1,208        |   |   |   | 29 |   |   |   | 26 |   |   |   | 22 |   |   |   | (14 | ) |   |   | (13 | ) |   |   | (10 | ) |   |   | 4,249 |   |   |   | 3,671 |   |   |   | 3,449 |   |
|                                 | 61      |   |      |   | 62      |                                           |   |   | 61           |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (55 | ) |   |   | (50 | ) |   |   | (48 | ) |   |   | 2,752 |   |   |   | 2,327 |   |   |   | 1,783 |   |
|                                 | 447     |   |      |   | 266     |                                           |   |   | 396          |   |   |   | 7 |   |   |   | 7 |   |   |   | 8 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 4,328 |   |   |   | 3,604 |   |   |   | 4,120 |   |
|                                 | 32      |   |      |   | 20      |                                           |   |   | 28           |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 151 |   |   |   | 130 |   |   |   | 123 |   |
|                                 | – |   |      |   | – |                                           |   |   | –      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 162 |   |   |   | 101 |   |   |   | (110 | ) |
|                                 | – |   |      |   | 396     |                                           |   |   | –      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 396 |   |   |   | – |   |
|                                 | – |   |      |   | (393    | )                                              |   |   | –      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (393 | ) |   |   | – |   |
|                                 | – |   |      |   | (333    | )                                              |   |   | –      |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | (333 | ) |   |   | – |   |
|                                 | – |   |      |   | – |                                           |   |   | –      |   |   |   | 9 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | 9 |   |   |   | – |   |   |   | – |   |
|                                 | 2,044   |   |      |   | 1,145   |                                           |   |   | 1,693        |   |   |   | 45 |   |   |   | 33 |   |   |   | 30 |   |   |   | (69 | ) |   |   | (63 | ) |   |   | (58 | ) |   |   | 11,651 |   |   |   | 9,503 |   |   |   | 9,365 |   |
| $                                    | 690     |   |      | $      | 316     |                                           |   | $      | 866          |   |   | $ | 48 |   |   | $ | 55 |   |   | $ | 49 |   |   | $ | (8 | ) |   | $ | (15 | ) |   | $ | (3 | ) |   |   | 2,938 |   |   |   | 4,289 |   |   |   | 3,536 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 270 |   |   |   | 235 |   |   |   | 211 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (214 | ) |   |   | (102 | ) |   |   | 203 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 364 |   |   |   | 373 |   |   |   | 448 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (42 | ) |   |   | (128 | ) |   |   | (24 | ) |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (49 | ) |   |   | 1 |   |   |   | (163 | ) |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 329 |   |   |   | 379 |   |   |   | 675 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,609 |   |   |   | 3,910 |   |   |   | 2,861 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 747 |   |   |   | 860 |   |   |   | 789 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (30 | ) |   |   | 407 |   |   |   | 399 |   |
|                                 |    |   |      |   |    |                                           |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,892 |   |   | $ | 2,643 |   |   | $ | 1,673 |   |

----

|                                   |  2012       |   |  2011 |                                   |
|----------------------------------------|------------------|--------|------------|----------------------------------------|
|                                   | Net expenditures |   |       |  Non cashandfair value changes(2) |   |   |   Capitalized costs |   |   |   Net expenditures |   |   |   Non cashandfair value changes(2) |   |   |   Capitalized costs |   |
|                                   |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and evaluation assets      |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and Production             |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North America                          |             | $      | 295        |                                   |   | $ | (173 | ) |   | $ | 122 |   |   | $ | 309 |   |   | $ | (233 | ) |   | $ | 76 |   |
| North Sea                              |             |   | –    |                                   |   |   | – |   |   |   | – |   |   |   | 1 |   |   |   | (6 | ) |   |   | (5 | ) |
| Offshore Africa                        |             |   | 14         |                                   |   |   | – |   |   |   | 14 |   |   |   | 2 |   |   |   | – |   |   |   | 2 |   |
|                                   |             | $      | 309        |                                   |   | $ | (173 | ) |   | $ | 136 |   |   | $ | 312 |   |   | $ | (239 | ) |   | $ | 73 |   |
|                                   |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment          |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exploration and Production             |             |   |       |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North America                          |             | $      | 3,831      |                                   |   | $ | 373 |   |   | $ | 4,204 |   |   | $ | 4,427 |   |   | $ | 832 |   |   | $ | 5,259 |   |
| North Sea                              |             |   | 254        |                                   |   |   | 263 |   |   |   | 517 |   |   |   | 226 |   |   |   | 15 |   |   |   | 241 |   |
| Offshore Africa                        |             |   | 50         |                                   |   |   | 17 |   |   |   | 67 |   |   |   | 31 |   |   |   | 16 |   |   |   | 47 |   |
|                                   |             |   | 4,135      |                                   |   |   | 653 |   |   |   | 4,788 |   |   |   | 4,684 |   |   |   | 863 |   |   |   | 5,547 |   |
| Oil Sands Mining and Upgrading (3) (4) |             |   | 1,610      |                                   |   |   | 142 |   |   |   | 1,752 |   |   |   | 1,182 |   |   |   | (140 | ) |   |   | 1,042 |   |
| Midstream                              |             |   | 14         |                                   |   |   | – |   |   |   | 14 |   |   |   | 5 |   |   |   | 2 |   |   |   | 7 |   |
| Head office                            |             |   | 36         |                                   |   |   | – |   |   |   | 36 |   |   |   | 18 |   |   |   | – |   |   |   | 18 |   |
|                                   |             | $      | 5,795      |                                   |   | $ | 795 |   |   | $ | 6,590 |   |   | $ | 5,889 |   |   | $ | 725 |   |   | $ | 6,614 |   |

| (1) | This table provides a reconciliation of capitalized costs including derecognitions and does not include the impact of foreign exchange adjustments. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Asset retirement obligations, deferred income tax adjustments related to differences between carrying amounts and tax values, transfers of exploration and evaluation assets, and other fair value adjustments. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net expenditures for Oil Sands Mining and Upgrading also include capitalized interest and share-based compensation. |
|-----|---------------------------------------------------------------------------------------------------------------------|

| (4) | During 2011, the Company derecognized certain property, plant and equipment related to the coker fire at Horizon in the amount of $411 million. This amount was included in non cash and fair value changes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | 2012   |   |   | 2011   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|
| Exploration and Production     |   |   |   |   |   |   |
| North America                  |   | $      | 29,012 |   |   | $      | 28,233 |   |
| North Sea                      |   |   | 1,993  |   |   |   | 1,809 |   |
| Offshore Africa                |   |   | 924    |   |   |   | 1,070 |   |
| Other                          |   |   | 36     |   |   |   | 23 |   |
| Oil Sands Mining and Upgrading |   |   | 16,291 |   |   |   | 15,433 |   |
| Midstream                      |   |   | 636    |   |   |   | 642 |   |
| Head office                    |   |   | 88     |   |   |   | 68 |   |
|                           |   | $      | 48,980 |   |   | $      | 47,278 |   |

----

|        |   |  2012 |   |   |   | 2011 |   |   |   | 2010 |   |
|-------------|--------|------------|--------|--------|--------|------|--------|--------|--------|------|--------|
| Fees earned |   | $          | 2      |   |   | $    | 2      |   |   | $    | 2      |   |

|                             |   |   | 2012    |   |   |   | 2011    |   |   |   | 2010 |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|------|--------|
| Salary                           |   | $      | 2       |   |   | $      | 2       |   |   | $      | 2    |   |
| Common stock option based awards |   |   | 12      |   |   |   | 18      |   |   |   | 30   |   |
| Annual incentive plans           |   |   | 3       |   |   |   | 2       |   |   |   | 3    |   |
| Long-term incentive plans        |   |   | 9       |   |   |   | 8       |   |   |   | 16   |   |
| Other compensation               |   |   | – |   |   |   | – |   |   |   | 2    |   |
|                             |   | $      | 26      |   |   | $      | 30      |   |   | $      | 53   |   |

| (1) | Senior management identified above are consistent with the disclosure on Named Executive Officers provided in the Company’s Information Circular to shareholders for the respective years. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | CANADIAN NATURAL RESOURCES LIMITED |                                     |
|--------|------------------------------------|------------------------------------------|
|   |                               |                                     |
|   |                               |                                     |   |
|   | By:                                | SIGNED “STEVE W. LAUT”       |   |
|   |                               | Name:   Steve W. Laut     |   |
|   |                               | Title:     President |   |
|   |                               |                                     |   |

----

| Exhibit No. | Description                                                                                                                             |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                    |
| 1.*         | Supplementary Oil & Gas Information for the fiscal year ended December 31, 2012.                                                    |
|        |                                                                                                                                    |
| 2.          | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.                |
|        |                                                                                                                                    |
| 3.          | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.                |
|        |                                                                                                                                    |
| 4.          | Certification of Chief Executive Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350). |
|        |                                                                                                                                    |
| 5.          | Certification of Chief Financial Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350). |
|        |                                                                                                                                    |
| 6.          | Consent of PricewaterhouseCoopers LLP, Independent Chartered Accountants.                                                               |
|        |                                                                                                                                    |
| 7.*         | Consent of Sproule Associates Limited, Independent Petroleum Engineering Consultants.                                                   |
|        |                                                                                                                                    |
| 8.*         | Consent of Sproule International Limited, Independent Petroleum Engineering Consultants.                                                |
|        |                                                                                                                                    |
| 9.*         | Consent of GLJ Petroleum Consultants Ltd., Independent Petroleum Engineering Consultants.                                               |

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