annual report 2009 unprecedented opportunities · 2020. 5. 14. · ebn anual report 2009 | 2...
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Annual R
eport 2009 - Unprecedented opportunities
Annual Report 2009Unprecedented opportunities
ContactsKey figures
Visiting address Visiting address
EBN Utrecht EBN Heerlen
Moreelsepark 48 Het Overloon 1
3511 EP Utrecht 6411 TE Heerlen
Postal address
P.O. Box 19063
3501 DB Utrecht
T +31 (0)30-2339001
F +31 (0)30-2339051
Copy
Tekst & Speech, Haren
Design and layout
Bovil DDB, Eindhoven
Photography
Roy Beusker, Den Haag
Drukkerij van Meurs, Ridderkerk
© 2010 EBN
No part of this publication may be copied and/or made public by means of printing.
photocopy, microfilm or in any other way whatsoever without EBN’s prior written consent.
2009 2008
Number of participations 181 171
of which pertaining to exploration 45 41
Sales volume, EBN share (billion m3)1 29 30
EBN's (in)direct share in reserves (billion m3 GE) 491 507
Sales (from continuing operations) 6,387 8,698
Net profit from continuing operations 2,211 3,269
State income via EBN 5,188 7,516
Capital expenditure 713 576
Depreciation and amortization 462 501
Number of employees 79 61
1 This includes the proportional part of sales from onshore production licenses in which
EBN has no equity share but is entitled to a proportional share of the revenues. Unless
stated otherwise, all quantities in this report are expressed in billion m3 of natural gas
(35,17 M at 0 degrees Centigrade) based on EBN’s participation percentage.
2 Preface
6 AboutEBN
10 Outlook
12 ReportoftheSupervisoryBoard
18 Organisation
21 ThepeopleofEBN
25 Externalstakeholders
34 Strategy
36 Smallfields,greatimportance
37 Explorationandproduction
42 Gasgebouwpartnership
48 Financialresults
49 Riskmanagementandinternalcontrol
53 CorporateGovernance
54 Financialstatements 54 General
56 Principlesforthevaluationofassetsand
liabilitiesanddeterminationofprofit
62 Statementofcomprehensiveincome
63 BalanceSheet
64 Summaryofchangesinshareholder’sequity
65 StatementofCashFlows
66 NotestotheFinancialStatementsof
EnergieBeheerNederlandB.V.
67 Notestothestatementofcomprehensive
income
71 Notestothebalancesheet
84 Otherexplanatorynotes
87 Profitappropriation
88 Auditors’report
90 Glossary
92 Keyfigures
Contacts
Introduction
People
Planet
Profit
1
2
3
4
2|EBNAnualReport2009
Preface
‘Unprecedentedopportunities’:thatisthetheme
ofEBN’s2009annualreport.Inourworkweare
constantlylookingforunprecedentedopportunities
andwecanfindtheseinmanydifferentareas.
Inthe‘people’sphere,EBNonceagainwitnessed
majorchangesin2009.Firstofall,internally.The
transitionfrombeingpartofDSMtowardsbeingan
independentcompanyhasvirtuallybeenaccomplished.
OurHeerlenofficewillclosedownpermanentlyat
theendof2010.Thisobviouslyhasfar-reaching
consequencesforthepeoplewhoworkthere.We
arethereforeworkingcloselytogetherwiththemon
developingthenextstageintheircareers,whetherthis
involvesamovetoEBN’sUtrechtofficeortoalternative
employmentormayberetirementorearlyretirement.
Inthemeantime,weareactivelybuildingourUtrecht
organisation,whichexpandedconsiderablyin2009.
Weareinvestingindevelopinganorganisationthatcan
enthusiasticallytackleEBN’scurrentandfuturetasks,
withhighlytrainedandpro-activestaffandappropriate
operatingprocedures.
DuringtheyearEBNhosteddiscussionmeetingsforits
businesspartnerstoexchangeideas.Wealsocarried
outvariousstudiesandconductedresearch.Wherever
possibleEBNwouldliketoshareitsknowledgewithits
partnersandmakeitsinformationaccessible.Wehave
setouttoexplainEBN’sprinciplesandthevalueitadds
asclearlyaspossible.Wehavemanagedtoattractthe
attentionofthemediafortopicswedeemimportant,
suchasunconventionalgasresources.
MostofEBN’sactivitiesrelatetogas,thecleanest
fossilfueland,therefore,importantinthetransition
tosustainableenergy.EBN’soperationsfocuson
ensuringsustainableuseofthesubsurfacesoasto
maximisebenefitsforDutchsociety.Alargenumberof
newgasfieldscameonstreamin2009,largelythanks
togoodexplorationresults.Thesenewfieldsarebadly
3 | Preface
neededifwearetomaintainthelevelofproduction
fromsmallfieldsforaslongaspossible.EBNseta
targetin2009toproduce30billioncubicmetresof
gasfromsmallfieldsintheyear2030.Thattargetis
high,butachievable.
FollowingdevelopmentsinNorthAmerica,EBNcommis-
sionedastudyintothepotentialofunconventionalgas
reserves.ItisprobablethattheDutchsubsurfaceholds
additionalgasprospectsintheorderofseveralhundreds
ofbillionsofcubicmetresofproduciblegas.Gasthat
hasnotyetbeendefined,letaloneproven.However,a
lotofresearchstillhastobedonebeforethesevolumes
canbeproduced.Researchintofindingouthowthis
gascanbetechnicallyproduced,butalsoresearchinto
planningprocedures.Thesepotentialvolumeswillalso
havetoplaytheirpartifEBNistoachieveitstargets.
DuringtheyearunderreviewEBNalsoevaluated
optionsforcarboncaptureandstorage(CCS):
deepundergroundstorageofCO2.Thisstudywas
commissionedbytheMinistryofEconomicAffairsand
wasperformedinclosecooperationwithGasuniein
respectofthetransportationaspects.Wewillpresent
ouradvicetotheMinisterinApril2010.
Asfaras‘profit’isconcerned,2009wasaturbulent
year.Manycompanieshadadifficultyearbecause
theeconomiccrisisdidnotpasstheE&Psectorby
unnoticed.Asaresultoflowerturnoverandloweroil
andgasprices,EBN’s2009resultswereconsiderably
lowerthanintherecordyearof2008.Theyear2008,
however,wasanexceptionalyear,andthe2009results
arecomparabletothelevelsrecordedin2006and2007.
Apositivefeaturein2009wasthehighinvestment
level:despitetheeconomiccrisis,mostoilcompanies
eithercuttheirbudgetsonlymarginallyornotatall.
Asaresult,moreexplorationandappraisalwellswere
drilledthanin2008.Mostwellswerealsosuccessful,
whichisveryimportantformid-termproduction
security.ItalsoprovesthattheDutchsubsurface
isstillquiteprospectiveandthatitisfartooearly
tostopexploring.Inotherwords,therearemany
unprecedentedopportunitieshere,too!
In2009weexaminedthescopeforCSRinour
organisationanddiscoveredthatmanyofourcurrent
activitiescanalreadyberegardedasCSR-compliant.
ButthereisstillmorewecandotoensurethatCSR
becomesanintegralpartofourcompany’sideas
andactions.Stepbystep,weareworkingtowards
structurallyembeddingCSRintoourorganisation.
Allinall,EBNisgoingthroughaperiodoftransition.
NotjustthemovefromHeerlentoUtrecht,butalso
changingfrombeingafairly‘silent’partnerforthe
government,licenceholdersandothersintobeing
acompanythatseekstouseitsknowledgeand
experiencetocreateaddedvalue.Withyouasour
partner,wearekeentocontinueoursearchfor
unprecedentedopportunitiesinthecomingyears!
JanDirkBokhoven
ChairmanExecutiveBoard
4|EBNAnualReport2009
EBNhasawideknowledgeofandparticipationinDutchoilandgasexplorationactivities.Inthecomingdecadestheorganisation’sgrowingstrengthanditsstrongfinancialpositionwillcreateaddedvalueforitsstakeholders,bothprivateandpublic.
Intro
duct
ion
6|EBNAnualReport2009
AboutEBN
General
ThediscoveryoftheGroningengasfieldturnedout
tobeofimmenseimportance,bothfortheDutchand
EuropeanenergysupplyandfortheDutcheconomy.
TheDutchgovernmentlookedforawayinwhichthe
gascouldbecommerciallyproducedandyetbenefit
Dutchsocietyasmuchaspossible.
ThesolutionwasfoundintheDutchState’spartici-
pationingasproductionandsales.Inadditionto
RoyalDutchShellandExxonMobil,theStatedirectly,
andindirectlyviaEBN,participatesinGasTerra,the
companyresponsibleforsellingmostoftheDutchgas.
Anditalsoparticipatesindirectly,againviaEBN,inthe
MaatschapGroningenpartnership,whichmanagesthe
Groningennaturalgas.
7 | Section1-Introduction
EBNplaysakeyroleintheexploration,production
andsaleofDutchnaturalgas,whilealsobeingactive
inoilexplorationandproduction.TheNetherlands,
includingtheDutchpartofthecontinentalshelf,isrich
ingasreservesand,toalesserdegree,oilreserves.
Byparticipatinginlargenumbersofjointventures
withoilandgascompanies,EBNcontributestothe
explorationanddevelopmentofgasandoilreservesin
aneconomicallysoundmanner.
EBNisalsoinvolvedinsellingDutchnaturalgasvia
aninterestinGasTerra,thegastradingcompany.
Inaddition,EBNadvisestheMinisterofEconomic
AffairsonDutchenergypolicyingeneralandonissues
relatingtogoodstewardshipofDutchoilandgas
resourcesinparticular.
Mission
“�EBN�develops�energy�resources�and�oversees�the�
exploitation�of�the�deep�subsurface�in�a�manner�that�
is�profitable�for�Dutch�society.”�
ThismeansthatEBNaimstohelpmaximise
productionofoilandgasintheNetherlands,thus
generatingoptimalrevenuesforitsshareholder,
theDutchState.Tothisend,EBNactivelyseeks
tocreateanattractiveinvestmentclimatefor
miningcompaniesinordertomaximiseoiland
gasexplorationandproductionfromDutchfields,
whileensuringeffective,timelyandresponsibleuse
oftheexistinginfrastructure.EBNisalsoinvestigating
theopportunitiesforusingorreusingdepletedgas
fieldsandexistinginfrastructureforstoringnatural
gasorCO2.
EBN’spublic-sectordutiesaredefinedintheDutch
MiningActof2008.Asummaryofthesedutiesis
providedbelow:
• participatinginoilandgasexplorationandproduction;
• participatinginproduction-relatedactivities,including
thesale,transportandstorageofnaturalgasandoil;
• carryingouttasksaspartoftheGasgebouw
partnership(theagreementontheexploitationof
thenaturalgasreserveslocatedintheGroningen
productionlicenceandparticipationinGasTerraB.V.);
• performingothertasksinstructedbytheDutch
MinisterofEconomicAffairs;
• providingadvicetotheMinisterofEconomicAffairs.
Inadditiontoitspublic-sectorduties,EBNmayalso
carryoutotheractivitieswiththeconsentoftheMinister.
Consentisonlygrantediftheactivitiesandtheir
implementation:
• arecloselyrelatedtotheactivitiesneededtoperform
thepublic-sectorduties;
• donotinterferewiththeproperperformanceofthese
public-sectorduties;
• servethegeneralinterestoftheenergypolicy(suchas
gas-storagefacilities).
8|EBNAnualReport2009
EBN and CSR
In2009,EBNembarkedonamorestructuralsearch
for‘unprecedentedopportunities’withrespecttoCSR
initsoperations.Oneoftheresultsofthissearchisa
newCSRpolicystatement,wherebyEBN’saimisto
achieveabalancebetweenpeople,planetandprofit.
Basedonitsmission,EBNisbydefinitionanorgani-
sationwithasocialresponsibility.Goodstewardship
andresponsibleproductionandexploitationofDutch
mineralresourcesareofmajorimportancetosociety.
ToEBN,therefore,‘profitabledevelopment’means
muchmorethanmakingaprofit.Inadditiontoseeking
tooptimiseitseconomicinterests(profit),EBNalso
takesaccountoftheeffectthatitsactivitieshaveon
theenvironment(planet)andonhumanactivitywithin
andoutsidetheorganisation(people).EBNnotonly
ensuressubstantialnaturalgasrevenuesfortheState,
butalsocontributestoamoresecureandsustainable
energysupplyandthusseekstocontributetosociety’s
long-termprosperity.EBN’sactivitiesarebasedonits
codeofconduct,inwhichrespectfortheindividual,
integrityandprofessionalismareleadingprinciples.
EBNadoptsanon-discriminatory,market-basedand
transparentpositioninconsultationswithbusiness
partnersandotherstakeholders.EBNseeksto
maintainrelationshipswithitsvariousstakeholderson
thebasisoftransparencyanddialogue.
Theambitiontosystematicallyestablishthisbalance
inallouractivitiesdoesnotrepresentanexpansionof
EBN’smission.EBNseekstoemphasisethesocietal
focusofitsmission.HowwillEBNimplementits
CSRambitionsandpolicystatementinpractice?The
answertothatquestionisthatwewillapplythe
followingfourprinciplesinourworkoverthenext
threeyears:
• wewillmakeEBN’sE&Pknowledgestructurally
availabletoourstakeholders,withoutjeopardising
theconfidentialityofcertaininformation;
• wewillmakeastructuralcontributiontooptimally
exploitingtheDutchsubsurface;
• wewilltailorourownoperationssoastomaintaina
balancebetweenpeople,planetandprofit;
• wewillpromotestaffawarenessofCSR.
InordertoachievetheseaimswehavesetaCSR
agenda,whichmakesadistinctionbetweenwhatis
mandatory,whatisrightandwhatisworthwhile.
• what is mandatory:thisincludesexternallyimposed
matters,suchaslegislation,butalsoexisting
agreementsandcontracts.
• what is right:thisincludesmattersthatare
collectivelydecidedbyEBN.Becauseweasagroup
considerthesemattersimportantandbecausewe
believethatintheseareasweshoulddomorethan
isprescribedbylaw.Examplesincludebehaving
respectfullywithintheorganisationorsponsoringa
charity.
• what is worthwhile:thisalsoincludesmatters
decidedonbytheorganisationitself,butwhere
ourresponseisdeterminedbystakeholders’
expectations.Forinstance,takingthewishesof
employees,licenceholders,customersorsuppliers
intoaccountmakesiteasierforustobuildgood
relationshipswiththem,andthushelpstocreate
addedvalueforEBN.
9 | Section1-Introduction
Whatismandatoryisalreadybeingimplemented
byEBNinagreementsandthroughoperating
proceduresandregulations,includingtheExecutive
BoardRules,theSupervisoryBoardRulesandthe
CodeofConduct.Thesedocumentsareavailableon
EBN’swebsite(www.ebn.nl).
‘Whatisright’and‘whatisworthwhile’represent
thevisiblepartoftheCSRagenda.Wehaveset
objectivesforeachlineofdevelopment,whilealso
indicatingwhatweneedtodotoachievethese
objectives.TheCSRagendaisalsoavailableon
www.ebn.nl.
What is mandatory, what is right and what is worthwhile…
10|EBNAnualReport2009
Bytheendof2010,EBNwillhaveitsorganisation
fully‘inplace’andwillbeequippedtoachieveits
substantialambitions.Thepast50yearshave
demonstratedtheimportanceofgasproductionfor
Dutchsocietyasawhole.EBNaimstoensurethat
wecancontinuebenefitingfromthisproductionover
thenext50years.Notonlybecauseproductionfrom
Groningenwilldefinitelycontinueforthatlong,but
alsobecausetherearesmallfieldsthatstillcontain
largeamountsofgas.Aspartnerinexplorationand
productionandastheMinister’sadvisor,EBNaimsto
createtheconditionsthatensurethehighestpossible
recoveryofthisgas.
Ourambitionfor2030istoproduce30billioncubic
metresfromsmallfieldsintheNetherlandseachyear.
Thiswillhelptosecuretheenergysupply,aswellas
providingamajorboosttotheDutcheconomyand
representingaconsiderablesourceofrevenuefor
theState.
Gaswillalsoplayamajorroleinthetransitiontoa
sustainableenergysupply.Fossilfuelswillremain
indispensablethiscenturyinordertomeetdemand,
andgasisnotonlythecleanest,butalsothemost
flexiblefossilfuel.Gascanmakeamajorcontribution
duringthetransitiontosustainableenergyresources
Outlook
11 | Section1-Introduction
suchassolarandwindpower,bothofwhichdepend
onweatherconditions.EBNisalsoseekingtosmooth
thetransitiontoasustainableenergysupplyinother
waysby,forinstance,contributingtodesigningthe
infrastructureforCO2storageandexaminingthe
scopeforthelarge-scaleapplicationofgeothermal
energyasapowersource.
EBNexpectstobeabletomaintainthecurrenthigh
investmentlevelsoverthenextfewyears.Thesewill
requireinvestmentsinexplorationforandproduction
ofoilandgasorindevelopmentofstoragesfacilities,
butcertainlyalsoindevelopingtheknowledgeand
technologyneededtomaintainDutchgasreservesin
thelongerterm.
Thenextfewyears’resultsareexpectedtobe
comparabletothe2009results.Theoversupplyinthe
Europeangasmarketwillcontinueforsometime,and
sopriceswillremainunderpressure.However,this
pricelevelstillallowsagoodreturnoninvestmentfor
EBN’scurrentandnewactivities.Halfwaythroughthe
nextdecadeashifttoatightermarketisexpected,
withcorrespondinglybetterreturns(highervolumes
andhigherprices)similartothoseseenpriorto
2009.Topostponeinvestmentsnowwouldonly
aggravatetheexpectedshortagesandpossiblyleadto
bottlenecksinsupplyinthefuture.
EBNexpectstobeanattractiveemployerforcurrent
andpotentialstaffmembers.Ourhighambitions,
thesocietalrelevanceofouractivities,ourflexible
conditionsofemploymentandthedevelopment
opportunitiesweofferwerethereasonswhysome
twenty-fivepeoplechoosetojoinEBNduringthe
yearunderreview.And,astheoutlookoutlinedabove
indicates,thatwillnotchangeoverthecomingyears.
Alongsideitsownrecruitmentandselectionpolicy,
EBNalsoseekstointerestyoungpeopleinworking
intheoilandgasindustryingeneralandcontributes
totheirtraininganddevelopment.Thatiswhyweare,
forinstance,apartnerintheGroningenEnergyDelta
Institute.Soitcutsbothways.Weinvestinpeopleand
alsointheknowledgeneededtokeeptheoilandgas
industrydynamicandinnovativeandstrengthenthe
currentleadingpositionoftheNetherlands.
Theorganisation’sstrongfinancialposition,wide
knowledgeofandinvolvementinDutchoilandgas
explorationandproductionactivities,combinedwith
itsincreasingcapabilities,meanEBNwillcreateadded
valueforitsstakeholders,bothpublicandprivate,over
thecomingyears.
12|EBNAnualReport2009
Financial statements
TheSupervisoryBoardhasexaminedtheannual
report,thefinancialstatementsandtheauditors’
reportofErnst&Young.TheSupervisoryBoardagrees
withtheaforementionedreportsandstatementsand
recommendsthattheGeneralMeetingofShareholders
adoptsthefinancialstatementsaccordingly.
Activities of the Supervisory Board
TheSupervisoryBoardsatisfiestheindependence
criteriaandprofilethathavebeenapprovedbythe
shareholder,asstipulatedinarticle12.2oftheArticles
ofAssociation.
ThechairmanoftheSupervisoryBoardisthefirstpoint
ofcontactforEBN’sExecutiveBoard.TheSupervisory
Boardhascollectiveresponsibility.Allmembersofthe
SupervisoryBoardarealsomembersoftheremuneration
andauditcommittees.Theremunerationandselection
committeeshavebeencombinedandarereferredto
astheremunerationcommittee.Gert-JanKrameristhe
chairmanoftheremunerationcommittee,whileArnold
GratamavanAndelchairstheauditcommittee.
TheSupervisoryBoardmetfourtimesin2009.AllBoard
membersattendedallthemeetings.TheSupervisory
BoardapprovedvariousdecisionsoftheExecutive
Board,includingthedecisionstoinvestindeveloping
theK5-CUfield,theQ13a-Amstelfield,theB13-A
fieldandtheBergermeerstorage-facilityproject.
Inaddition,theSupervisoryBoarddiscussedthe
followingissues:updatingtheStrategicLong-termPlan,
financialreturn-on-investmentcriteriatobeadopted
byEBN,embeddingofnon-publictasksintheEBN
organisationanddesigningtheannualassessmentof
financialperformance.DevelopmentsintheGasgebouw
partnershipwerediscussedattwoofthemeetings.
TheExecutiveBoardandSupervisoryBoardjointly
paidaworkingvisittotheredevelopmentofNAM’s
Schoonebeekoilfield.
TheSupervisoryBoarddiscussedtheperformanceof
thetwoboardsatameetingthatwasnotattended
bytheExecutiveBoard.TheSupervisoryBoard
membersRudyvanderMeerandArnoldGratamavan
AndelresignedattheGeneralShareholders’Meeting
inaccordancewiththescheduleforresignationby
rotation.BothSupervisoryBoardmemberswere
reappointedforafurtherfour-yearperiod.The
SupervisoryBoardmembersGert-JanKramerand
HeinvanOorschotwillresignin2010andbothare
eligibleforreappointment.
ReportoftheSupervisoryBoard
13 | Section1-Introduction
EventhoughtheCorporateGovernanceCodeis
notapplicable–EBNisnotlistedonthestock
exchange–EBNconformstotheCode.Elsewhere
inthisannualreport,theprincipleswithtoEBN
conformsareoutlined.
Audit committee
Theauditcommitteemettwicein2009.TheExecutive
Boardattendedbothmeetings,whiletheexternal
auditors,Ernst&Young,attendedoneofthem.During
themeetings,theauditcommitteereviewedtheannual
report,financialstatementsandtheauditforthe
year2008,thefundingplanandcreditfacilities,the
cash-flowforecast,theindependenttreasuryactivities,
riskmanagementandtheassessmentofthefinancial
returnsofvariousinvestmentprojectsapprovedbythe
SupervisoryBoard.
Remuneration committee
Theremunerationcommitteemetoncein2009.Asof
1January2009,twomembersoftheExecutiveBoard
wereemployedbyEBN,whilethethirdmemberhad
aformalemploymentcontractwithDSMandwas
secondedbyDSMtotheEBNExecutiveBoard.
SupervisoryBoard,Utrecht,31March2010
R.M.J.vanderMeer(Chairman)
A.H.P.GratamavanAndel
G-J.Kramer
H.M.C.M.vanOorschot
Scheduleforresignationbyrotation
Dateoffirstappointment Dateofreappointment Endof4-yearsterm
R.M.J.vanderMeer 1January2006 2009 2013
A.H.P.GratamavanAndel 1January2006 2009 2013
G-J.Kramer 1January2006 - 2010
H.M.C.M.vanOorschot 1January2006 - 2010
14|EBNAnualReport2009
Wegreatlyvalueanactivedialoguewithourstakeholders;especiallyassuchmajorinterestsareatstake.
Peo
ple
16|EBNAnualReport2009
“EBNpeopleareentrepreneurialprofessionals:
enthusiasticandenterprisingpeoplewhosee
opportunitiesandfocusondevelopment.
Theyknowtheirspecialisedfieldsandhave
goodcommunicationskills.”
17 | Section2-People
CommutingbetweenHeerlenandUtrecht
“Fitslikeaglove”.ThatishowJosjeZwolsmandescribesherjobatEBN,whereshehasbeensinceMarch2009.Sheis
veryhappyasanHRadvisor,eventhoughshehashadtodealwithsometoughassignments.Sheiscloselyinvolvedin
thetransitionoftheEBNorganisationfromHeerlentoUtrecht.Thismovewillhaveafar-reachingimpactonallHeerlen
employees,whowillseetheirofficeclosedownattheendof2010.Josjeisalsohelpingbuildtheneworganisationin
Utrecht,wherestaffnumbersrosefrom61inMarch2009to79bytheendoftheyear.TheHRdepartmentwasinvolvedin
2009inensuringthatworkinHeerlenisbroughttoasmoothcloseandinbuildingaforward-lookingorganisationinUtrecht.
Good employment practices
TheHRdepartmentfocusesonpeople.HowdidJosje
putCSRintopracticeinthepastyear?“CSRincludes
thingslikegoodemploymentpractices,”saysJosje.
“WhencounsellingpeopleinHeerlen,thismeans,for
instance,remaininginvolved,communicatingclearly
andhavingagoodsocialplan.Ihavehadlotsoftalks
withourHeerlenemployees,alwaysinconsultation
withtheirimmediatesuperiorsandDSM’sHRstaff.
ForsomepeopleinHeerlen,retirementorearly
retirementisinsight,whileotherswillmovewithus
toUtrecht.Wemakeagreementswiththemon,for
instance,reimbursingtheirmovingexpensesifthey
wanttomove,oronachievingabalancebetweentheir
professionalandprivatelivesiftheywanttocontinue
livinginthesouthofthecountry.Forthethirdgroup,
wearelookingforotherjobsinLimburg,eitherwithinor
outsideDSM.Wearedoingourutmosttofindjobsfor
everybody,eventhoughthatisnotexactlyeasy,given
theriseinunemployment.”
Sustainable development
CSRalsomeansinvestinginsustainablestaff
development.Thatisaparticularlyimportantaspect
ofbuildingtheUtrechtorganisation.AsJosje
Zwolsmansays,“Wehavecarefullyconsideredwhat
typeofpeoplewewouldliketorecruit.EBNpeople
areentrepreneurialprofessionals:enthusiasticand
enterprisingpeoplewhoseeopportunitiesandfocus
ondevelopment.Theyknowtheirspecialisedfields
andhavegoodcommunicationskills.Luckilywehave
beenabletorecruitmanypeoplejustlikethat.Now
weareinvestingintheirprofessionaldevelopmentby,
forexample,settinguptheEBNAcademy,anin-house
trainingprogrammeandinbuildinganorganisationthat
operatesandworkstogetherasasingleunit.Wemade
agoodstartin2009andwillbuildonthesefoundations
in2010.Wewillalsobeintensifyingourtransition
effortsasthefinalclosureofourHeerlenofficeis
approachingfast!”
Interview with Josje Zwolsman
18|EBNAnualReport2009
EnergieBeheerNederlandB.V.(EBN)isaprivate
limitedcompanyincorporatedunderDutchlaw.EBN
isanindependentcompany,withtheDutchStateas
thesoleshareholder.EBN’sobjectiveistoperform
activitiesdesignedtoimplementtheMinisterof
EconomicAffairs’energypolicy,specificallyinrespect
ofaresponsibleexploitationoftheDutchmineral
resourcesandsubsurface.EBN’sExecutiveBoard
reportstoanindependentSupervisoryBoard.EBN
doesnotmaintainfinancialreserves;theentirenet
resultispaidouttotheState.
EBNisactiveintheexplorationforandproductionof
oilandgasintheNetherlands.EBNdoesnotengage
inanyactivitiesoutsidethecountry.Inaccordancewith
theMiningAct,theDutchStatehasarighttostipulate
StateparticipationbyEBNwhengrantingaproduction
licence.Whengrantinganexplorationlicence,the
licenceholdermayrequestEBNtoparticipate.In
practicethisparticipationisvirtuallyalwaysrequested.
Asaresult,EBNisinvolvedin170jointventureswith
variousinternationallyoperatingoilcompanies.
Agreementsbetweenjointventurepartiesarerecorded
inseparateagreementsofcooperation.EBNisa
co-investorinthesejointventures,withoneofthe
participatingoilcompanies(theoperator)being
responsiblefortheactualoperations.Inmostcases,
EBNhasa40%interest.
Inadditiontothesejointventures,EBNhasinterests
infourgas-storagefacilities(oneofwhichisstillunder
construction),infiveoffshoregatheringlines,inthe
EmmenGasPurificationPlantandinGasTerra.The
interestsinGasTerraandinthreepipelinesareheld
byseparateprivatelimitedcompanies,whileallthe
otherinterestsareheldincontractualjointventures
withothercompanies.EBN’sgroupstructureis
shownbelow:
Organisation
Energie Beheer Nederland B.V.
GasTerra B.V.(40%)
Nogat B.V.(45%)
177 joint ventures
F3/A6 Extensie B.V.(100%)
K13 Extensie Beheer B.V. (100%)
19 | Section2-People
Shareholder
UnderEBN’sArticlesofAssociation,sharesinEBN
canonlybeheldbytheStateoftheNetherlands
(directlyorindirectly).Managementisentrustedtothe
MinistryofEconomicAffairs(MEA).EBNhasregular
informalconsultationswiththeMEA.OneGeneral
MeetingofShareholderswasheldin2009.
Theshareholderappointsexternalauditors.Ernst&
Youngwereappointedin2009toauditEBN’sannual
financialstatementsfortheyears2009,2010and2011.
Theauditors’performanceisevaluatedperiodically.
Supervisory Board
EBNhashadaSupervisoryBoardsince1January
2006.TheshareholderappointstheSupervisoryBoard
andthechairmanofthisBoard.TheSupervisoryBoard
hascollectiveresponsibilityforsupervisingthepolicy
oftheExecutiveBoardandgeneraldevelopmentsin
thecompany.AllmembersoftheSupervisoryBoard
performtheirdutiesfullyindependentlywithouta
mandatefromacompany,authorityororganisation.
TheSupervisoryBoardhasdrawnupasetofrules
governingitsactivities,aswellasaprofiledescription,
bothofwhichhavebeenapprovedbytheshareholder.
TheSupervisoryBoardisresponsibleforthequalityof
itsownperformanceandforperiodicallyevaluatingit.
TheSupervisoryBoardhasadoptedrulesgoverning
theactivitiesofSupervisoryDirectors.
EBN’sSupervisoryBoardremainedunchangedin
2009.ThemembersoftheSupervisoryBoardareRudy
vanderMeer(chairman),ArnoldGratamavanAndel,
Gert-JanKramerandHeinvanOorschot.Additional
informationonthemembersoftheSupervisoryBoard
canbefoundontheEBNwebsite(www.ebn.nl).
Theauditcommitteeandtheremunerationcommittee
performtheirdutiesinaccordancewiththeregulations
adoptedbytheSupervisoryBoard.
AllthemembersoftheSupervisoryBoardaremembers
oftheauditcommittee,whichischairedbyArnold
GratamavanAndel.Theauditcommitteeadvisesthe
SupervisoryBoardonthefinancialstatementsandon
supervisinginternalriskmanagementsystemsandthe
provisionoffinancialinformation,aswellasonfunding,
ICTapplicationsanddatasystems.
Theremunerationcommitteeconsistsofallthemembers
oftheSupervisoryBoardandischairedbyGert-Jan
Kramer.Theremunerationcommitteepreparesareport
ontheremunerationpolicyformembersoftheExecutive
Board.Thecommitteemakesaproposalforthe
remunerationoftheExecutiveBoardmembers,based
ontheremunerationpolicyapprovedbytheshareholder.
Forefficiencyreasons,theremunerationcommitteealso
actsasrecruitmentandappointmentcommittee.
Executive Board
EBN’sExecutiveBoardremainedunchangedin2009.
TheExecutiveBoardconsistsofthreemembers,in
accordancewiththeArticlesofAssociation:JanDirk
Bokhoven(chairman),JoostHaenen(commercial
director)andDickRoest(financialdirector).The
20|EBNAnualReport2009
ExecutiveBoardisresponsibleformanagingthe
companyanddeterminingpolicy.TheExecutiveBoard
hasdrawnupExecutiveBoardRules.Additional
informationontheExecutiveBoardmemberscanbe
foundontheEBNwebsite(www.ebn.nl).
InprincipletheExecutiveBoardmeetseveryweek
todiscusspolicyandoperationalissuesandtotake
decisions.Ifnecessary,decisionsaresubmittedtothe
SupervisoryBoardand/ortheshareholderforapproval,
inaccordancewiththeArticlesofAssociation.The
ExecutiveBoardiscollectivelyresponsibleforthepolicy
implemented.EachmemberoftheExecutiveBoardhas
specificareasofresponsibility.
TheArticlesofAssociationrequirethecompanytobe
representedbyatleasttwomembersoftheExecutive
Board.TheExecutiveBoardmayalsodelegate
managersorotheremployeestorepresentthe
company.Permanentauthorisationsareregisteredwith
theChamberofCommerceandhavetobeapproved
bytheSupervisoryBoard.Specificauthorisations,for
exampleprojectapprovals,arediscussedbeforehand
withthemanagersconcerned.
Organisation chart
EBNhasamatrixorganisation.Knowledgeand
experienceinvariousareasaregroupedtogetherin
variousmanagement-supportdepartments,while
EBN’sjointventuresareorganisedalongbusinesslines.
Business-linemanagersmanagethejointventures
andreporttotheExecutiveBoard.Theyformteams
consistingofpeoplefromvariousmanagementsupport
departmentswithvaryingbackgroundsandexpertise,
whotogetherprepareproposalsthataresubmitted
totheExecutiveBoardforapproval.Theseproposals
coveravarietyoftopics,rangingfromtheevaluationof
investmentprojectstothesaleofhydrocarbons.
Organisationchart
shareholder
supervisory board
chairman executive board
commercial director �nancial director
gasgebouw business lineexploration & production business lines
�nance & economics
treasury
ict
commercial department
support
personnel & organisatiion
technical department
legal department
communication
21 | Section2-People
ThepeopleofEBN
Increasing professionalism
EBN’semployeesareitsmostimmediatestakeholders.
Theycontributeknowledge–oftenofahighly
specialisednature–thatenablesEBNtoaddvalueto
allitsparticipations.Theydosowithapassionforthe
intricaciesofthejobandenthusiasmforthecollaboration
withotherpartieseitherwithinoroutsideEBNandare
motivatedbythepublicinterestservedbyEBN.
Ouremployeescanonlydotheirjobswellin
aprofessionalenvironmentwithproperbasicfacilities.
Thesefacilitieswerefurtherimprovedin2009,alongwith
theeffortsundertakentoincreasetheprofessionalismof
theEBNorganisation.Oneoftheactivitiesundertaken
inthisrespectduringtheyearunderreviewinvolved
establishingourowncompetencysystem.Wenow
operateonthebasisofthefollowingcorecompetencies:
• cooperation;
• result-orientation;
• responsibility.
Oneofthewayswefocusedonthesecompetencies
duringtheyearwasbyorganisingtwojointtraining
daysforallEBNemployees.Thethemesofthesedays
were‘cooperation’and‘givingandreceivingfeedback’.
Thetrainingdayswerealsoagoodopportunityto
involvethemanynewemployeesincreatingourown
EBNculture.
EBN’sCSRtargetscontributetoageneralsenseof
satisfactionandprideamongouremployees.Theyare
theoneswhohelpenableEBNtoachievetheposition
ithassetforitself.Specificactivitiesundertakeninthe
personnelsectorinclude:
• EBN’sdecisiontoanchorCSRinitsorganisation
throughitsformalprogrammestructure.These
activitiesaresupportedbytheCSRcommittee,
whichadvisestheExecutiveBoard,andby
employeesareinvitedtoproposeinitiativesdesigned
toincreaseCSRawarenessintheorganisation.
• EBN’sdecisiontoalignitscodeofconductwith
the3Pbalanceandtoactivelypromotethiscode.
Dilemmaswillbesharedandevaluatedtogether.
• EBNinvolvingitsemployeesstructurallyin
discussionsonthebestpossibleuseofthe
Dutchsubsurface.
• EBNofferingseveralinternships.
22|EBNAnualReport2009
Numberofemployees
Education
Many vacancies filled…
EBNstaffnumbersincreasedconsiderablyin2009.In
early2009,EBNhad61employees,whilethisnumber
hadincreasedto79bytheendoftheyear.Atotal
of25newemployeeswererecruitedduringtheyear
underreview.ThenewUtrechtAccounting&Reporting
teamwassetupandwillreplacetheHeerlenteam
inearly2010.ATreasurydepartmenthasalso
beenestablishedandwillstartperformingtreasury
activitiesthatarenowsub-contracted.Atotalofseven
employeesleftthecompanyin2009,includingsome
fromtheHeerlenofficewhofoundotherjobsortook
earlyretirement.
FemaleMale
20
40
60
80
100
20072005 2006 2008 2009
30
15
39
18
43
18
42
19
52
27
20
40
60
80
100
20072005 2006 2008 2009
UniversityIntermediateHigher level
21
14
10
30
10
17
10
17
34 35
11
15
15
19
45
23 | Section2-People
Absencethroughillness
Agedistribution
Asinpreviousyears,themajorityofEBNemployees
areuniversitygraduates.Mostotheremployeeshave
intermediate(MBO)orhigher-levelqualifications(HBO).
ThenumberoffemaleEBNemployeesincreasedfrom
19(31%)in2008to27(34%)in2009,11ofwhomare
universitygraduates.Around40%oftheemployees
workpart-time.
Asaresultofthenewstaffrecruited,theaverage
ageofemployeesfellto43.5years.Illness-related
absenteeismdecreasedfrom3.4%in2008to2.4%
in2009.
1%
2%
3%
4%
5%
20072005 2006 2008 2009
3,4%2,1% 1,5% 2,3% 2,4%
20
40
60
80
100
20072005 2006 2008 2009
55 - 6435 - 4445 - 54
< 2425 - 34
11
9
14
19
8
18
14
18
19
23
19
17
9
19
15
16
12
14
17
24|EBNAnualReport2009
Investing in training
Inearly2009wedrewupindividualdevelopmentplans
forouremployees.Atotalof400man-dayswere
spentontrainingactivities.Withinsixmonthsofjoining,
everynewemployeemustcompleteanintroductoryor
trainingcourseontheMiningAct,competitivetrading
legislation,theoilandgasindustry,theuseofspecific
softwareandinternalhealthandsafetyissues.
Moving towards one location
EBN’sHeerlenofficewillclosedownpermanently
on31December2010.Manydiscussionswereheld
withemployeesdirectlyinvolvedinthisprocessin
2009.Managers,theHRdepartmentandDSM’s
HRcolleagues–obviouslyincloseconsultation
withtheindividualstaffmembers–aretogether
workingonplansforthefutureoftheseemployees.
Someemployeeswillretire,whilewearelookingfor
alternativeemploymentforothers.Staffmemberswho
haveoptedtocontinuebeingemployedbyEBNwill
havespecificrelocationexpensesreimbursed.
Works Council
EBN’sWorksCouncilremainedunchangedin2009.
TheWorksCouncilconsistsoffivemembers:Christel
Hartkamp-Bakker(Chair),JoBeusen(Secretary),
MartinBoubin,JohnvanEngelenandEdRamakers.
TheWorksCouncilandExecutiveBoardcooperated
increasinglyintensivelyduring2009,withsix
consultativemeetingsbeingheldbetweentheCouncil
andrepresentativesoftheExecutiveBoard.The
SupervisoryBoardattendedoneofthesemeetings.
Awiderangeofissueswasdiscussedatthemeetings.
ThemovefromHeerlentoUtrechtwasdiscussed
atvirtuallyeverymeeting,thusenablingtheWorks
Counciltokeepacloseeyeonitsprogress.
TheHRdepartmentevaluatedtheannualHRpolicy
cycleinliaisonwiththeWorksCouncil.Thisresulted
insomeadjustmentstoandclarificationofthecycle
inrespect,forinstance,ofthetimingofdecidingon
employees’developmentplans.TheWorksCouncil
alsoadvisedpositivelyonissuessuchasthenew
competencyprofilesandonchangestotheEBN
organisationinrespectofexploration,thecommercial
departmentandtheGasgebouwbusinessline.
Aswellasexaminingorganisationalissues,theWorks
Councilalsoconsideredvariousorganisationalpolicies,
includingtheproposeddecisiontoinvestinthe
Bergermeergas-storagefacility.TheWorksCouncil
hasagreedtoEBN’sparticipationinthismajorproject.
25 | Section2-People
Externalstakeholders
Active dialogue
Inonewayoranother,EBNisrepresentedinvirtually
everypartofthegaschain:fromgasexploration
rightthroughtogassalestowholesalersandmajor
customers.EventhoughEBNisnottheoperator
inanyoftheseactivities,itfeelsresponsibleforthe
performanceoftheseactivities.EBNregularlyconsults
withoperatorsonissuessuchassafety,environment
andenergyefficiency.Asyet,therearenostructured
consultationsonhowtheoperatingcompanies
manageimplementCSRandhowtheissueof
differentresponsibilitiesshouldbeaddressed.
EBNoperatesattheinterfaceofcommercialactivities
andpublicinterests.Togetherwithourpartnerswe
investhugesums–inexcessof1.5billioneurosin
2009–intheexplorationforandproductionofoil
andgasandinotherprojects.Wearedoingsoon
thebasisofourpublictaskarisingundertheMining
Actandinthiswaycontributetoasecureand
cleanenergysupply.Ourinvestmentsalsogenerate
substantialrevenuesfortheDutchState.EBN’s
paymentsamountedto5.2billioneurosin2009.
Anactivedialoguewithourstakeholdersisinvaluable
inourwork,preciselybecausesuchmajorinterests
areatstake.
EBNhasauniquepositionintheDutchE&Pindustry.
Wearethefocalpointatwhichinformationon
developmentsintheDutchE&Pindustrycomes
togetherfrommanydifferentparties,including
operators,partners,StateSupervisionofMines,
TNOandtheMinistryofEconomicAffairs.This
givesEBNagoodoverviewofdevelopmentsand
currentevents.
WewanttomakethisE&Pknowledgeavailableina
prudentwayby,forinstance,sharing‘bestpractices’
withrelevantparties.Inthatway,wecancontribute
toanattractiveminingclimateandtomaximumand
sustainableexplorationandproduction.Somespecific
examplesofouractivitiesinthisrespectare:
• thevariousdialoguesorganisedwithstakeholders
inthesectortoenableustoascertainthetypeof
knowledgerequiredandestablishhowwecanmeet
thatdemand.
• thehelpdeskthatwillbeestablishedin2010sothat
ourpartners,inparticularnewcompanies,canget
helpiftheyhavequestionsonissuessuchasthe
small-fieldspolicyorlicensingprocedures.
• thepresentationsregularlygivenbyEBNstaff
membersatrelevantplatforms:atotaloften
presentationsweregivenin2009.
26|EBNAnualReport2009
Inlate2008weaskedanumberofourstakeholders
whattheythoughtofEBN.Theindependentmarket-
researchagencyIntegronconducted38interviews
with23differentoilcompaniesonourbehalfand
summarisedandanalysedtheresultsofthissurvey
inearly2009.
Allpartiesactivelyinvolvedingasproductioninthe
Netherlandsreceivedfeedbackonthefindingsofthis
surveyduringanannualmeetingorganisedbyEBN.
Thepeopleinterviewedalsoreceivedletterslistingthe
mainfindingsofthissurvey.Thesewerethat:
• businesspartnerswouldlikeEBNtocontributemore
substantiallytojointventures,notjusttogatherdata;
• EBNshouldcommunicateitsownroleandactivities
betterandmoreclearly;
• EBNshouldbemorepro-activeandrespondmore
quickly;
• partnerswereconcernedaboutwhattheyperceived
asalackofexperienceamongmanynewEBN
employees.
EBNimmediatelystartedaddressinganumber
ofthesefindingsby,forinstance,comparingthe
operationalexpensesofplatformsfortheyear2008
andalsocomparingtheseexpenseswiththeresults
ofprevioussurveys.Thiscomparisonshowedthat
operationalexpenseshadrisensharplysince2003,
andinsomecasesalmostdoubled.Thisisan
alarmingtrend,certainlygiventhedecreasing
levelsofproductionandaginginfrastructure.
EBNplanstorepeatthissurveyannually.
27 | Section2-People
EBNalsoorganiseddiscussionsessionswith
stakeholders,wherethetopicsdiscussedwere
formulatedintheformofdilemmas:
• publicinterestversuseconomicinterest;
• needfor‘small’companiesversusriskofspreading
resourcestoothinly;
• confidentialityversusthewishtoshareexperience
andinformation;
• whenisafielddepleted?
Thesediscussionswereattendedbyrepresentatives
ofCirrusEnergy,Ernst&Young,Gasunie,theMinistry
ofFinance,theMinistryofEconomicAffairs,NAM,
StateSupervisionofMinesandEBNitself.The
participantswereenthusiasticaboutthediscussion
topicsandmeetingformat.EBNwillcontinueand
expandtheseandotherdialoguesinthecomingyears.
EBN’smainstakeholdersarelistedbelow.
Licence holders
Licenceholdersarecompaniesthathavereceived
permissionfromtheDutchgovernmenttoexplore
forandproduceoilorgas.Invirtuallyallcases,they
havecooperationagreementswithEBNforthelicence
concerned.EBNandthelicenceholdermeetatleast
threetimesayeartodiscussjointpoliciesonoperational
andtechnicalissues,aswellastoapproveoperational
plansandrelatedbudgetsforeachjointventure.
TheNetherlandsOilandGasExplorationand
ProductionAssociation,NOGEPA,promotesthe
interestsofcompaniesholdinglicencesinthe
Netherlandsfortheexplorationorproductionofoil
andgas.EBNisnotamemberofNOGEPA,but
cooperatescloselywiththisorganisationbecauseof
themanycommoninterests.Moreinformationcanbe
foundonwww.nogepa.nl.
Government
TheMinistryofEconomicAffairs,beingthe
shareholderandpolicymaker,isanimportant
stakeholderforEBN.TheMinistryisresponsiblefor
policy,legislationandlicensingintheenergysector.
Itsmainpolicyobjectivesare:
• optimisingthestructuringofenergymarkets;
• assuringsecurityofsupplyintheshortand
longterm;
• makingtheenergyeconomymoresustainable.
28|EBNAnualReport2009
Inthespecificcaseofnaturalgas,theMEAseeksto
ensuremaximumgasproductioninthelongterm,with
optimalrevenuesforsociety.Inaccordancewithits
mission,EBNcontributestoimplementingthispolicy.
TheMEApublishesanannualreviewofthecompanies
andtheirexplorationandproductionactivitiesin
theNetherlands.Thesereviewsareavailableon
theoilandgasportalwww.nlog.nl.TheMEAand
EBNfrequentlyconsultinformally.Inaddition,the
ExecutiveBoardandthechairmanoftheSupervisory
BoardmeettheDirectorGeneraloftheMEAonce
ayeartocoordinatepolicyandtodiscussstrategic
issues.Moreinformationcanbefoundonwww.ez.nl.
TheMinistryofFinance,beingthereceiveroftaxes
andotherpayments,isanothermajorstakeholderof
EBN.TheMinistryalsoissuesdirectivesoncorporate
socialresponsibilityforStateparticipationsandsets
theannualtransparencybenchmark.Moreinformation
canbefoundonwww.minfin.nl.
EBNregularlycooperateswithTNOB&Ospecifically
withtheoilandgasadvisorygroup.Thisincludes
providingjointadvicetotheMEAonproduction
licences.Moreinformationcanbefoundon
www.tno.nl.
EBNalsocooperateswiththeStateSupervision
ofMines(Dutchacronym:SodMforStaatstoezicht
opdeMijnen),whichisthestateinspectorateand
responsibleforsupervisingalltheactivitiesinvolvedin
mineralexplorationandproduction.Itskeyconcerns
aresafety,health,environment,productionefficiency,
subsidenceandearthtremors.Moreinformationon
thiscanbefoundonwww.sodm.nl.
Customers
EBNseekstomaintainsustainableandmutually
profitablerelationshipswithbuyersofgas,oiland
condensate.ThisparticularlyappliestoGasTerra,
notonlybecausethelatterisEBN’sprincipalcustomer,
butalsobecauseEBNowns40%oftheGasterra
shares.In2009,asmallproportionofgaswassoldto
othercompanies,suchasGDFSuezGlobalGasand
LNGbrancheandStatoilHydroASA.Thecondensate
thataccompaniesgasproduction,wassoldtoSabic
andPetrochemCarlessin2009.OilfromtheDeRuyter
fieldwassoldduringtheyeartovariouscompanies
thatoperaterefineries,includingShell,Conoco,
PetroplusandTotal.
29 | Section2-People
Suppliers
Themainserviceprovidersarelawfirmsandauditors.
Intheyearunderreview,EBNusedErnst&Young,
DeloitteandKPMGforfinancialservices,whilelegal
serviceswereprovidedbye.g.Allen&Overyand
Loyens&Loeff.
Whenpurchasinggeneralfacility-management
servicesandofficesuppliesforourUtrechtoffice,
weincreasinglyconsiderwhethertheseproducts
meetCSRcriteria.
Professional organisations
EBNactivelysupportsseveralprofessional
organisations.ItsponsorsClingendaelInternational
EnergyProgramme,athink-tankforgeopolitical
issues,aswellastheEnergyDeltaInstitute,atraining
andknowledgeinstituteforthegasindustry.
EBNalsosponsorsseveralsmallandlarge
organisationsthatpromotepublicinvolvementintheoil
andgasindustryandencourageresearchinthisarea.
EBNhaspledged,forinstance,tohelpfundanew
themeroom,focusingonthedeepsubsurface,atthe
Museon,apopular-sciencemuseuminTheHague.
Great Gas & Oil board game: informative and supporting charity…EBNdevelopedtheGreat�Gas�&�Oil�board�gamein
2009asafunwayforpeopleofallagestogetto
knowtheactivitiesinvolvedintheDutchoilandgas
industry.Thegame,whichhasbeendistributed
amongDutchhospitalswithchildren’swards,can
alsobeorderedfromEBN.Proceedsgotocharity.
30|EBNAnualReport2009
EBNalwaysseekstomaximisethesociallyresponsiblereturnonitsexplorationandproductionactivities.
Pla
net
32|EBNAnualReport2009
“CSRmeansmuchmorethanusinggreenpower,
travellingbytrainorusinglesspaperforprinting.”
33 | Section3-Planet
Added value
HowcanEBNcontributetoCSRinrespectof‘planet’
aspects?AsFloorexplains,“EBNparticipatesinmany
jointventures.Thisuniquepositionmeanswehavea
lotofexpertiseandinformation.Ouraddedvalueis
insharingthatexpertiseandinformationandmaking
itmoreaccessible.Wealsocarryoutstudiesanddo
research.In2009,forinstance,wepublishedastudy
comparingoffshoreoperationalexpensesofspecific
operatorswiththeindustryaverage.Understanding
thatcomparisoncanhelpachievecostsavings,which
willmakegasproductionmoreprofitableandenable
ustobenefitfromthisrelativelycleansourceofenergy
forlonger.Our‘FocusonDutchGas’reportresulted
inadebateonunconventionalgasresources.We
arealsocollaboratinginstudiesonCO2Captureand
Storage(CCS),instudieslookingattheapplicationof
geothermalenergyandasapartnerintheBergermeer
gas-storage-facilityproject.Alltheseshowhowweare
implementingourtargetofmakingoptimaluseofthe
Dutchsubsurface.”
CSR awareness
HasFloornoticedagrowingCSRawarenessamong
EBNstaff?“Overthepastyear,everybodyhasbeen
involvedintheCSRprojectthrough,forinstance,a
questionnaireandapresentation.Thesehavehelped
increaseawareness.CSRisatopicthatisnowbeing
discussedatlunch.Ouraimiscertainlytoincrease
awareness,alsoincooperationwithourpartners.CSR
meansmuchmorethanusinggreenpower,travelling
bytrainorusinglesspaperforprinting,althoughthose
areallthingsthatwearedoingatEBN.Butyoualso
havetoexplaintheconsequencesofthecompany’s
activitiesforpeople,planetandprofit.Manynew
CSR-relatedactivitieswerestartedin2009.Andwe’re
goingtobeenthusiasticallypushingforwardalongthis
pathinthecomingyears!”
EBN’sactivitiesfocusoncreatingvalueintheareasofpeople,planetandprofitandincontributingtolong-termprosperity
insociety.EBN’srelationshipswithstakeholdersarebasedontransparencyandmutualinterest.EBNseekstofindaproper
balancebetweenpeople,planetandprofit.ThatisthecoreoftheCSRpolicystatementformulatedbyEBN’sExecutive
BoardinresponsetotheadviceoftheCSRprojectteamestablishedin2009.TheteamsetouttoembedCSRstructurally
intoallEBN’sactivities.Andnowwehavetoputthispolicystatementintopractice.FloorJansen,afacilityengineeratEBN,
iscloselyinvolvedinthisprocess,originallyasamemberandnowchairoftheCSRcommittee.
ManyCSR-relatedactivitiesstartedin2009
Interview with Floor Jansen
34|EBNAnualReport2009
Ambitious and prudent
EBN’smissionistodevelopenergyresourcesand
exploitthedeepsubsurfaceinamannerthatisprofitable
toDutchsociety,withmaximumpossibleproductionof
oilandgasintheNetherlandsandoptimallong-term
revenuesfortheStatebeingparamount.
Wehavetranslatedourmissionintothreestrategic
objectives:
1.FirstlyEBNwishestoactivelymanagethecurrent
jointventures.Aswellaswantingtoknowexactly
whatisgoingonintherapidlyrisingnumberofjoint
ventures,thisalsomeanswantingtomaketheright
choiceswhendecidinghowtodeployourlimited
manpower.Thefocusmustremainonthosejoint
venturesandprojectswhereEBNcanaddvalue
and/orwhichbestservethegovernment’sinterests.
Wherevernecessary,EBNwillhelpgetprojectsoff
thegroundbyusingitsownexpertiseandmore
cost-effectivesolutionsitisawareof,aswellasby
pursuingsynergybetweendifferentprojectsand
makingexistinginfrastructurelastlonger.
2.Thesecondstrategicobjectiveistoensure
continuityintheexplorationforandproductionof
oilandgasintheNetherlands.ToEBN,thismeans
maintainingourreserves.Thisobviouslyallstarts
withexplorationintheexistinglicences,butalso
requiresmappingandevaluationofnewoilandgas
playsandprospects.Inthiscontext,EBNisalso
lookingatunconventionalgasresources,whichcan
befoundin,forinstance,shalesandcoallayersand
alsoatthetechnologicalinnovationsthatareneeded
tobringthatgasintoproductioninthefuture.
3.Thethirdstrategicobjectiveistoinvestigateother
possibleapplicationsofthesubsurface,including
storingnaturalgasorCO2oropportunitiesoffered
bygeothermalenergytoachieveasustainable
energysupply.
EBNseekstoachievetheseobjectivesby
conscientiouslyperformingitstasksandusingthe
positionassignedtothecompanyintheMiningAct.
WedothisincloseliaisonwiththeMEA,whichis
responsibleforsettingtheDutchenergypolicy.
ToachievetheaboveobjectivesEBNadherestothe
followingprinciples:
• explorationforandproductionofoilandgasare
tobecarriedoutbymarketparties.EBNseeks
tobeaprofessionalandfinanciallystrongpartner
inthis,eitherasastate-ownedentityorasa
commercialpartner.EBNwill,however,initiatenew
developmentsifapromisingprojectisotherwise
atriskofnotgettingofftheground.EBNdoesnot
itselfseektobeanoperator,anddoesnotwishto
positionitselfasacompetitoroftheoilcompanies;
• EBNwillonlyparticipateinactivitiesthatcontribute
toachievingitsmissionandthatcreatesynergy
withexistingactivitiesoratleastdonotconflictwith
them.EBNwillbuildonitsknowledgeoftheDutch
subsurfaceandtheexperienceofcooperationin
jointventuresavailablewithinitsownorganisation.
TheMinistry’spolicywillalwaysbethekeycriterion.
Wecanonlyperformeffectivelyifallthedifferent
stakeholderscanrelyonEBN.Toretainthattrust,it
Strategy
35 | Section3-Planet
iscrucialforusontheonehandtobetransparent,
andontheotherhandtobeveryprudentintheway
wehandletheconfidentialinformationthatEBN
possessesasaresultofperformingitsvarioustasks.
InlinewiththeserequirementsEBNwillexaminehow
thedivisionbetweenpublictasksandcommercial
activitiescanbestbestructured.
KnowledgeofthesubsurfaceisEBN’score
competency.EBNemploysexpertswhohavethat
knowledge.AsaresultEBNhasacomprehensive
overviewoftheentireDutchsubsurface.Theadded
valueofthisknowledgeis,ontheonehand,theability
tooptimiseoilandgasproductionand,ontheother
hand,theabilitytodevelopalternativeapplications
inthesubsurface.EBNcontributes,forinstance,to
researchintoCO2storageindepletedgasfields.But
EBNcanalsoplayanimportantroleinissuessuch
asgeothermalenergyandinoptimisingCO2storage
inrelationtothefinalstagesofgasproductionfrom
afield.ThemainconsiderationforEBNatalltimes
ishowwecandealwithour‘planet’ascarefullyas
possible.Theactivitiesperformedtoputthisambition
intopracticeinclude:
• developingsustainabilitycriteriaforevaluatingE&P
projectproposals;
• developingatool,incooperationwithstakeholders,
tosupportdecisionsontacklingissuessuchas
depletedgasfieldsandexistinginfrastructure.
36|EBNAnualReport2009
ThesmallgasfieldsintheDutchonshoreterritoryand
intheDutchpartofthecontinentalshelfcontinueto
playanimportantroleinthegovernment’snaturalgas
policy.Eversincethe1970sthegovernmenthasbeen
promotingthedevelopmentofgasfieldsotherthan
theGroningenfield.Obviously,theothergasfieldsare
muchsmallerthantheGroningenfield,buttogether
theyconstituteasubstantialadditiontoDutchnatural
gasreserves.
ThestructuresetupforproducingtheGroningenfield
wasalsousedasthebasisforcoordinatingproduction
fromthe‘smallfields’.Tothisend,thegovernment
devisedthe‘small-fieldspolicy’,whichstipulatesthat
gasfromsmallfieldsshouldtakepriorityovergasfrom
theGroningenfield.GasTerraisobliged,ifproducers
request,tobuygasfromsmallfieldsatmarketprices.
Asthisencouragescompaniestoproducegasfrom
smallfields,thesmall-fieldspolicycontributestoour
energysupplyandthehugerevenuesfromnaturalgas.
Byparticipatinginalargenumberofjointventures
(bynow181)withoilcompanies,EBNhasbeen
abletocontributetothesuccessofthesmall-fields
policy.EBNintendstopromotetheproductionofas
muchgasaspossiblefromsmallfieldsinthenextfew
decades,eventhoughitisbecomingmoredifficult
becauseoftheremainingfieldsbeingsmalleror
technicallymoredifficulttoproduce.Consequently,
EBN’sroleisabouttochange.
ParticipationinvirtuallyalllicencesoffersEBNa
helicopterview,whichenablesittohelpourpartners
totacklenewprojects.ThatiswhyEBNcarriedout
asurveytoexamineopportunitiesforproducing
‘unconventionalgas’,suchasgasfromcoalseams
orshaleformations.Maximumproductionofgas
fromourownsubsurfacewillalsomakeasignificant
contributiontoasecure,cleanandaffordableenergy
supply,aswellastotheDutcheconomy.
30 billion m3 in 2030…Beingthecleanestsourceoffossilfuel,natural
gasistheidealfuelforthetransitionperiodto
asustainableenergysupply.ThatiswhyEBN
hassetanannualproductiontargetby2030of
some30billionm3gasfromsmallfieldsinthe
Netherlands.ThiswaswhatJanDirkBokhoven
statedatthecelebrationstomarkNOGEPA’s35th
anniversaryon24September2009.Achieving
thisambitioustargetisextremelyimportantforthe
securityofsupply,fortheDutcheconomyandfor
societyasawhole.
Smallfields,greatimportance
37 | Section3-Planet
Explorationandproduction
Social return
EBNalwaysseekstoachievethemaximumsocial
returninitsexplorationandproductionactivities.The
economicinterestsofeachprojectarecarefullyweighed
upagainsthealth,safetyandenvironment(HSE)criteria.
InpracticethismeansthatEBNseekstodeterminethe
optionfordevelopingaspecificgasoroilreservoirthat
willproducethehighestpossiblevolume.Thatisnot
alwaysthemosteconomicoption.EBNalwaysbases
itsdecisionondesigncriteriathatemphasiseHSE.
Evenmoresothaninthepast,EBNisnowseekingto
takethedegreesoffreedominthechoiceofequipment,
scalefactorsandenergyconsumptionintoaccount
whendecidingontheappropriatebalance.
Theperformanceofolderequipmentinmaturefields
inthefinalproductionphaseswillalsobeevaluatedin
thelightofthesenewcriteria.Whereverpossibleand
incooperationwiththeoperatorconcerned,EBNwill
investinmodificationstoachievegreatercompliance
withtheCSRtargets.
Wells
Drillingof31wellsinwhichEBNparticipatedwas
completedin2009:12explorationwells,4appraisal
wellsand15productionwells.Explorationwas
successfulinproving12newfields,withtotalestimated
reservesof16billionm3,whichcanbedevelopedin
thenextfewyears.A75%successrateforexploration
wellsisbetterthancanbestatisticallyexpected.
Reserves
Indeterminingitsreserves,EBNadoptsthedefinitions
laiddownin2007bytheSPE,WPC,AAPGandSPEE
inthePetroleumResourcesManagementSystem.
On31December2009,gasreserves(ona100%field
basis)inthefieldsinwhichEBNparticipatesamounted
to1,212billionm3Groningenequivalent(GE),ofwhich
EBNhasashare(directorindirect)of491billionm3
GE.Thismeansanetdecreaseof38billionm³GE
incomparisonwiththepositionat1January2009.
Thisdecreasewasattributabletotheproductionof
70billionm3GEfromfieldsinwhichEBNparticipates,
while32billionm3GEreserveswereadded.Wellover
80%ofthegasreservesarelocatedintheGroningen
field,whiletheremainderisheldinsmallonshoreand
offshorefields.
OilreservesintheoilfieldsinwhichEBNparticipates
amountedto21millionm3attheendof2009,which
wasapproximately4millionm3lowerthanattheend
of2008.
38|EBNAnualReport2009
EBN’s(in)directshareinreserves
Production
In2009atotalof19fieldscameonstream(14offshore
and5onshore),resultinginwellover21billionm3
ofnewreservesbeingconnectedtotheDutchgas
mainsgrid.AspecialcaseistheGasselternijveengas
field,withahighH2Scontentgas.Thisfieldhasbeen
connectedtotheDrenthegas-purificationplant,where
sulphuriswashedfromthenaturalgas.Hookingup
thisnewfieldmeansthegas-purificationplantwill
remainprofitableformuchlonger,thusalsoenabling
othernearbyfieldstoremaininproduction.
CumulativeproductioninwhichEBNhasashare
amountedin2009toapproximately70billionm3.
EBN’ssharefromsmallfieldswas14billionm3,while
itssharefromtheGroningenfieldwas15billionm3.
ProductionfromtheGroningenfieldinparticular
waslowerthaninpreviousyears.Thisdeclineis
notstructural,butinsteadtheresultoftherelatively
warmwinterandspringof2009andthefactthat
theeconomiccrisistriggeredageneralfallin
demandforgasintheNetherlandsandother
countries.Becausetherateofproductionfrom
smallfieldsremainedapproximatelythesameas
inpreviousyears,productionfromtheGroningen
field–theswingproducer–hadtobereduced.
100
200
300
400
500
600
20072005 2006 2008 2009
Small �eldsGroningen
Bill
ion
m3
GE
At 31 december
396
124
427
110
397
116
393
114
391
100
39 | Section3-Planet
50 years of Groningen gasDutchsocietyhasbeenbenefittingfromgas
fromtheGroningenfieldforfiftyyears.The1959
discoveryoftheGroningenfieldwasmarkedin
June2009byasymposium,variouscelebrations
andtheunveilingofaworkofartbyHerMajesty
QueenBeatrix.ProductionfromtheGroningen
fieldstartedin1963andthefieldhascontinuedto
supplygasonanuninterruptedbasiseversince.
Sofarthishasgeneratedmanybillionsofeurosof
revenuesfortheDutchStateandofcourseithas
alsomadeahugecontributiontothesecurityof
supplybothinandoutsidetheNetherlands.
Projects
Asitwasnotpossibletoachievethecurrent
productionlevelfromtheGroningenfieldwithout
modifications,itwasdecidedin1997tostartthe
GroningenLong-TermRenovationandCompression
Project.Afterelevenyearsofrenovations,thisproject
wasroundedoffin2009withthefestivecompletion
ofthelastproductioncluster.Manyguests,including
localresidents,attendedthefestivities.Thistwo-
billion-euroinvestmentwillenablemanymoreyears
oftrouble-freeproductionfromtheGroningenfield.
Safetywasamajorfocalpointthroughoutthisproject,
whichachievedaverygoodsafetyrecord.
RedevelopmentoftheSchoonebeekoilfieldwas
addressedvigorouslyin2009.Constructionofvarious
unitsattheprocessingsiteisproceedingsteadily.
Drillingtheproductionandsteam-injectionwells
alsostarted,whiletheexportpipelinetotherefinery
inLingen,Germany,wascompleted.Thefirstoilis
expectedtobeproducedin2010.
AnewmilestonewasreachedattheBergermeer
gas-storage-facilityproject:Gazpromandtheowners
oftheBergermeerfieldsignedanagreementfor
supplyingcushiongas.Constructionofthenew
gas-storagefacilitywasapproved,providingthe
requiredpermitsareobtained.Discussionswith
localmunicipalauthoritiesandlocalstakeholders
arecurrentlyongoing.
Joint ventures
Thenumberofproductionjointventuresinwhich
EBNparticipatesonceagainincreasedbytwoonshore
andtwooffshorelicences.Bytheendoftheyear,the
totalnumberwas125.Thenumberofjointventuresin
explorationlicencesincreasedfrom41to45.Atotal
offouroffshoreexplorationlicenceswererelinquished
totheMEA.
EBNalsoparticipatesinfivemajoroffshoregas
gatheringlinesandthreeoperationalgasstorage
facilities.TheBergermeergas-storagefacility,an
importantnewdevelopment,bringsthenumberof
gas-storagefacilitiestofour.
Bytheendof2009,therefore,EBNmanaged181joint
ventures.In2010,thenumberofjointventuresislikely
toincreasetocloseto200.
First gas…In2009,thenewcompaniesCirrusandNorthern
Petroleumproducedtheirfirstgas.Anice
milestone.Itconsolidatestheirfinancialposition
andenablesthemtoembarkonfurtherexploration
anddevelopment.
40|EBNAnualReport2009
Technological developments
Theyear2009witnessedseveralinteresting
technologicaldevelopments,includinganewdrilling
techniquebeingappliedinEuropeforthefirsttime:
‘casingwhiledrilling’,whichinvolvesplacingcasing
duringdrillingoperations.Thistechniqueislikely
toresultinconsiderablecostsavings,thusmaking
productionofsmallreservoirsmoreprofitable.
Thenewseismicprocessingtechnique(BEAM
migration)enablesmoreaccurateimagingunderneath
complexsaltlayers.Thatmakesexploration
underneaththesesaltlayersmuchlessrisky,and
increasesthelikelihoodoffindingnewgasprospects.
Specialtechniquesarenowavailabletocombat
fluidaccumulationinthebottomsofwells.Now
thesometimeslargevolumesoffluidthatlimitgas
productioncanbecleverlyremoved.Thesetechniques
increasewelllife.EBNexpectsthatatleastafurther
30billionm3ofgascanbeproducedbyapplying
thesetechniques.
Fraccingofgas-bearingformationsisincreasingly
beingapplied.Thisinvolvesfracturingrocksby
injectingaspecialliquidunderhighpressureintothe
reservoirinordertoincreaseproduction.NAMhas
startedwithamulti-fraccedwellintheL-13field,
which,ifsuccessful,willenableproductionofgasfrom
tight–poorlypermeable–reservoirs.
Morenewoperatorsarrivedonthescenein2009.
Theseoperatorsareseekingtostartexplorationand
productionfromunconventionalreservoirssuchas
shalegasandcoalbedmethaneintheNetherlands.
Mostofthemhavewide-rangingexperiencein
producingunconventionalgaselsewhereintheworld
andseeopportunitiestoapplytheirtechniquesinthe
Netherlands.EBNsupportstheseventuresand,if
requested,willparticipateinexploration.
EBN in the press…EBNalsopaidmoreattentiontoexternal
communicationsin2009.Asaresult,newspapers
regularlyfeaturedarticlesontopicssuchasgas
storageandunconventionalgas.EBNcommissioned
astudyonthelatter.Thiscanbedownloadedfreeof
chargeonwww.ebn.nl.EBNstaffmembershavealso
givenseverallecturesonthissubject.
41 | Section3-Planet
Mining climate
TheamendmentoftheMiningActon1January2010
hassimplifiedtheapprovalproceduressothatEBNis
nowsubjecttothesameregulationswhenparticipating
inexplorationonshoreasitisoffshore.EBNhadalready
beeninvitedbyseveraloperatorstoparticipatein
licencesinanticipationofthisamendment.
42|EBNAnualReport2009
Gasgebouwpartnership
Important pillars
EBNhasa40%interestinMaatschapGroningen.
Thispartnership,whereNAMistheoperator,is
responsiblefortheproductionofnaturalgasfrom
theGroningenfieldandfortwoundergroundstorage
facilities.Inaddition,EBNalsohasa40%interestin
GasTerra,thecompanyresponsibleforsellingmost
oftheDutchgas.Thepublic-privatepartnershipof
MaatschapGroningenandGasTerraiscommonly
referredtoastheGasgebouwpartnership.
Gasgebouw in 2009
TheNorth-WestEuropeangasmarkethasfeltthe
effectsoftheeconomiccrisisandhashadtocontend
withanunexpectedandsubstantialgassurplus.On
theonehandthiswasduetothefallindemandcaused
bytherecessionandontheotherhandtothegrowing
volumeofLNGcomingtoEuropeinsteadoftotheUSA.
TheGasgebouwpartnershipremainedrobustinthis
turbulentyearandonceagainproveditsvalueforthe
43 | Section3-Planet
securityofsupplyinearly2009,duringtheUkrainian
gascrises.ForafewweekstheGroningenfieldand
thestoragefacilitiesproducedatfullcapacitytomeet
thesuddendemandfromcustomersathomeand
abroad.Formoreinformation,werefertotheannual
reportofGasTerra(www.gasterra.nl).Thisunderscored
thespecialqualitiesoftheGroningenfieldandmarked
agoodstarttoananniversaryyear.Inmid-2009we
andourpartnerscelebratedthe50thanniversaryofthe
Groningengasfield.
TheMinisterofEconomicAffairshasindicatedthatthe
Cabinetintendstogivecarefulconsiderationtothe
futureoftheGasgebouwpartnershipandthefuture
positionofGasTerraintheinternationalgasmarket
incloseconsultationwiththepartiesinvolved.EBN
endorsestheimportanceofthis.Firstlywithaview
tothefuturestabilityofthesmall-fieldspolicyasEBN
believesthatthesefieldswillremainveryimportantfor
Dutchsocietyformanydecadestocome.Secondly
because,inGasTerra,theNetherlandshasamajor
playerintheNorth-WestEuropeangasmarketandwe
needtoconsideringoodtimehowwecanmaintain
thatposition,evenwhenvolumesofour‘own’
Dutchgasstarttodecline.Inaddition,GasTerracan
promotetheroleofgasasatransitionfueltowardsa
sustainableenergysupply.
Market developments
Theyear2009wasverymuchdominatedbythe
economicandfinancialcrises,whichalsoleft
theirmarkonthegassector.Demandforgasfell
substantially,particularlyasaresultofthemuchlower
levelsofindustrialconsumption.Thisfallalsoresulted
inconsiderablylowerprices.Whereasoilprices
recoveredinthecourseoftheyear,gaspriceson
spotmarketsremainedlow.
Thissituationisnotlikelytochangesubstantiallyin
thenextfewyears.Demandwilldefinitelyrise,but
so,too,willsupplies.Thiswillbeduetothehuge
productionofunconventionalgasintheUnited
States–farexceedingexpectations–andtothelarge
volumesofLNG(liquefiednaturalgas)thatareflooding
themarket.
Inthiscontext,itisremarkablethattheDutchoil
andgasindustry’sactivitiesandinvestmentshave
remainedatalevelcomparabletothoseofthepast
fewyears.Neitherthenumberofexplorationand
productionwellsnorEBN’stotalcapitalinvestment
aremuchdifferentfrom2008.
44|EBNAnualReport2009
Pro
fit
46|EBNAnualReport2009
“Tous,CSRisnotagoalinitself.Weareseeking
increasinglytomakeitpartofourday-to-dayroutines.”
47 | Section4-Profit
Interview with Danny Westendorp
Imaginegettingtheopportunitytobuildanentirenewteamaroundyou!Andthatwhenyouhaveonlyjustjoinedyour
newemployer!ThatiswhathappenedtoDannyWestendorp,Accounting&ReportingManageratEBNsinceMarch2009.
In2009,hesetupanentirelynewAccounting&ReportingdepartmentinUtrechtbecausetheentireFinancialAdministration
teaminHeerlenhadoptedtostayinLimburg.Transferringanentirefinancialadministrationisahugeoperation.
“WedemandedalotofourstaffinHeerlenandUtrecht,”saysDanny.“Buteverybodywashighlymotivatedtomakethe
transitiongosmoothly.Iamproudofhowwelleverybodyhasbeenworkingonthistransition.Wearereadytotakeover
fromHeerlenfromthestartofthe2010financialyear.”
Intensive
ThenewAccounting&ReportingdepartmentinUtrecht
consistsofthreeunits:JointVentureAccounting,
FinancialReporting&Control,andTreasuryControl.
AsDannysays,“Wehavebynowfullystaffedall
thedepartment’sthreeunits.Allournewemployees
havecompletedanintensiveeducationandtraining
programme.In2009,weregularlyspenttwoorthree
daysaweekinHeerlen,wheretheexistingdepartment
waslocated.TheHeerlenemployeeshavesuchsmooth
routines;weinUtrechtcanlearnalotfromthem.So
foratemporaryperiodweoperatedadoublefinancial
administrationsoastoensureaproperhandover.We
arealsoworkingwithinverystrictdeadlines.Wereally
cannotafforddelays.”From2010onwards,theUtrecht
departmentwillincreasinglybeperformingcertainjobs
independently.Whatarethepriorities?“Toourexternal
partners,moneytransferswilllooklikebusinessas
usual,”explainsDanny.“Butapartfromthatweare
seekingtoimprovecollaborationwithinEBN.Wewant
toshowclearlywhatwecanoffertootherdepartments
andtailorthatoptimallytotheirrequirements.”
Corporate sustainability
EBNisseekingtoincorporateCSRstructurallyintoits
day-to-dayroutines.HowdoesDannyWestendorp
viewthisfroma‘P’ofprofitperspective?“CSRis
increasinglyandemphaticallyonouragenda,”hesays.
“Inpracticethismeansthatourpreferenceisfor
employeestotravelbypublictransport,andthatour
leasedcarshavetohaveA,BorCenergylabels.
Wearealsoseekingtoapplysustainabilitycriteria
moreeffectivelyinourpurchasingactivities.Weare
alsotryingtomakeoperatorsawareoftheimportance
ofsustainablebusiness.Tous,CSRisnotagoalin
itself.Weareseekingincreasinglytomakeitpartofour
day-to-dayroutines.”
NewinUtrecht:Accounting&Reporting
48|EBNAnualReport2009
Turnover
In2009turnoveramountedto6,387millioneuros
comparedto8,698millioneurosin2008.This
decreaseof27%wasmainlyduetothereductionin
gasturnoverthatresultedfroma23%fallinaverage
gasprices.Gasvolumesalsofellby4%.
Turnoverofoil(1%oftotalturnover)fellin2009by
65%.Thisreductionwasattributableontheone
handtothelowerpriceperbarrelandthelowerdollar
exchangerateagainsttheeuroandontheotherhand
tothefallbyhalfinthevolumesproduced.
Operating costs
Totaloperatingcostsfellby21%from4,306million
eurosin2008to3,422millioneurosin2009.The
differenceislargelyattributabletothedecreasein
paymentsmadetotheState.
Results
Theoperatingprofitin2009amountedto2,965million
euros,representingadecreaseof32%(1,427million
euros)onthefigurerecordedfor2008.Thenetprofitin
2009was2,211millioneuros,whichwas1,058million
euroslowerthanin2008.Thenetprofitisdistributed
infulltotheshareholder.
Financialresults
Operatingresults
2
4
6
8
10
20072005
Bill
ions
of e
uros
2006 2008 2009
state income net pro�toperating coststurnover
49 | Section4-Profit
Riskmanagementandinternalcontrol
Risk management
Inaccordancewithformulatedpolicy,theinternational
COSOmodelisusedasaguidingprincipleforEBN’s
riskmanagement.ThebasicprincipleofCOSOis
structuralembeddingofriskmanagementinallEBN’s
businessprocesses.Considerableattentionwas
devotedin2009tospecifyingoperationalobjectives
andtodevelopingapropermethodofassessing
performanceoftheseobjectives.Wearealsoworking
onfurtherincreasingawarenessofperformance
assessmentandriskmanagementwithinthe
organisation.Inadditionwearemakingprogressin
tighteningmanagementproceduresinjointventures
andinidentifyingrisksinvolvedinmajornewprojects.
Theinternalorganisationofthebusinesslines,
wherethefocusisonmanagingtheparticipations,
wasdevelopedfurtherduringtheyear,withone
importantaspectbeingtheimprovingofperformance
assessments.Scorecardshavenowbeendrawn
upandimplementedforalltheupstreambusiness
linesandmanagement-supportdepartments.
Thesescorecardsaretobecompletedmonthlyand
subsequentlydiscussedinthebusinesslinesand
management-supportdepartments.Theyshow
themaindevelopmentsintheformofperformance
indicators.Aselectionofindividualscorecardsis
includedintheExecutiveBoard’sscorecard(the
‘ExecutiveBoarddashboard’)everymonth.
Thedashboardandscorecardsenableustomanage
ourperformancemoredirectlyandhavebecomean
importantcontroltoolforEBN.Theymeanthatwecan
nowmorequicklyidentifysignificantdeviationsfrom
standardsthathavebeenset,whiletheyhavealso
improvedourinsightintofinancialdevelopments.Inthis
waywecanmanagetherisksinvolvedinparticipations
moreeffectively.Weareplanningtooptimisetheitems
listedonthescorecardsinthecomingyear,while
theExecutiveBoardisactivelypromotingtheuse
ofscorecardsthroughouttheorganisation.
50|EBNAnualReport2009
Strategic business risks
InpreparationforEBNbecomingindependent,an
analysiswasmadeofthecompany’smainstrategic
businessrisks.Thissurveyconcludedthat,inthelight
ofthecomingindependence,moreattentionshould
bepaidto:
• managementofparticipations;
• vulnerabilityasregardsretentionofknowledge
andexperienceinarelativelysmallorganisation;
• organisationandmanagementofinformation
systems.
In2010thestrategiclong-termplanwillbe
reformulatedtoincludeanupdatedanalysisofthe
mainstrategicbusinessrisks.
Management of joint ventures
In2009westartedsettingupaninvestment
administrationsothatwecantrackdetailsofallour
investmentprojectsfromthemomentofapprovaltothe
momentofcompletionandalsoimprovethefinancial
managementoftheseprojects.Weareaimingtohave
thisinvestmentadministrationfullyoperationalin2010.
Therequiredexpertisehasbeenclusteredinthe
internalmatrixorganisation,overseenbythebusiness
linemanagerandwiththeaimofensuringproperrisk
management.Thismeanswecanplayapro-activerole
inparticipations,andthiswillbehelpedbythefactthat
theBusinessControlgroupwasbroughttothedesired
51 | Section4-Profit
strengthinthepastyear.Thesevariouschangeswill
alsoenableustofurtherincreasetheeffectivenessand
efficiencyofbusinesslineactivities.Duringtheyearwe
alsofurtherimprovedourmanagementoftheexternal
auditors’annualauditsofEBN’sparticipationsandare
increasinglybasingthisaspectofourmanagement
activitiesonperceivedrisks.
Knowledge retention and transfer
OnceagainEBNrecruitedmanynewemployees
duringtheyear.Itisconsequentlyessentialforus
toensureaneffectivetransferofknowledge,andit
iscrucialforoperationalprocessestobeproperly
documented.Wecontinuedworkontheseaspects
ofouractivitiesin2009,withoperationalprocesses
nowbeingincludedintheIntegralManagement
System(IMS).Allouremployeeshaveaccessto
IMSthroughtheintranet.Inadditiontooperational
processes,allpolicydocumentsareavailablethrough
IMS.Thetargetistocompletetheupdatingofallthe
operationalprocessesin2010.
Information Technology
Betterdatamanagementandimprovedaccessibilityof
dataiscrucialifEBNistoenhanceitspro-activerolein
participations,tooperatemoreeffectivelyandefficiently
andtoimproveitsriskmanagementfurther.Tothis
end,anICTarchitecturewasdesignedin2009that
willequiptheorganisationforthefuture.Thechosen
designisbasedonanintegralapproach,inwhich
accessibilityandavailabilityofdataareindependent
oftheapplicationsused.Foranalysispurposes,a
toolwillbeusedtoanalysedatacomingfromvarious
applications.WehavealargenumberofICT-related
projectsplannedfor2010,manyofwhichfocuson
improvingdataaccessibilityandenhancingdata-
processingefficiency.
Operational risks and internal audits
TherisksinvolvedintheperformanceofEBN’s
operationalactivitiesaremanagedprimarilythrough
theadoptingandenforcingofstandardisedbusiness
processes.Internalauditsareconductedannuallyto
evaluatethedesign,existenceandperformanceof
businessprocesses.EBNemployeessuccessfully
conductedtwointernalauditsin2009.Theadvantage
oftheseinternalauditsisthatemployeesgain
agreaterunderstandingofotherdepartments’
processes.Theyalsocreatemoreaffinityamongstaff
withauditingandriskmanagementingeneral.Audit
resultswerediscussedwiththeExecutiveBoardand
thoseresponsibleforcarryingouttheprocesses.The
recommendationsresultingfromtheseauditswillbe
implementedandtheExecutiveBoardwillcarefully
monitorprogress.
52|EBNAnualReport2009
True and fair view
TheExecutiveBoardbelievesthattheinternalcontrol
systemforfinancialreportingprovidesareasonable
levelofinsurancethatthefinancialreportsdonot
containanymaterialinaccuracies.TheBoardalso
concludesthattheinternalcontrolsystemfunctioned
properlyin2009.
TheExecutiveBoardofEBNstatesthat,tothebest
oftheirknowledge,thefinancialstatementsof2009
giveatrueandfairviewoftheassets,liabilities,
financialpositionandprofitofEBNandthattheannual
reportgivesatrueandfairviewofthepositionas
perDecember31,2009thedevelopmentofEBN
during2009andthattheannualreportdescribes
theprincipalrisksEBNisfacing.Itshouldbenoted,
however,thattheabovedoesnotimplythatthese
systemsandproceduresareanabsoluteguarantee
thatthecompany’sstrategicandoperationalobjectives
willbeachievedorthattheycancompletelyprevent
anyincorrectdata,inaccuracies,errors,casesoffraud
oractionscontrarytolegislationandregulations.
Inviewoftheabove,theExecutiveBoardconsiders
thatitcomplieswithbestpracticeprovisionsII.1.4.
andII.1.5oftheCorporateGovernanceCode.
53 | Section4-Profit
AsEBNisnotlistedonthestockexchange,the
CorporateGovernanceCodeisnotapplicable.EBN
adherestothegovernmentpolicyforstateparticipations
andendorsestheprincipleoftheCodethattransparency
towardsstakeholdersiscrucial,aswellasgenerally
structuringitsactivitiesinaccordancewiththeprinciples
oftheCode.Thisdoesnotapplytoallthebestpractice
provisionsincludedintheseprinciplesasmanyofthese
arenotrelevantand,therefore,notapplicabletoEBN.
EBNcomplieswiththefollowingprinciplesofthe
CorporateGovernanceCode:
• II.1(ExecutiveBoard:roleandprocedures);
• II.3(ExecutiveBoard:conflictsofinterest);
• III.1(SupervisoryBoard:roleandprocedures);
• III.2(SupervisoryBoard:independence);
• III.3(SupervisoryBoard:expertiseandcomposition);
• III.4(SupervisoryBoard:rolesofthechairmanofthe
SupervisoryBoardandthecompanysecretary);
• III.5(SupervisoryBoard:compositionsandrolesofthe
threekeySupervisoryBoardcommittees);
• III.6(SupervisoryBoard:conflictsofinterest);
• III.7(SupervisoryBoard:remuneration);
• V.1(financialreporting);
• V.2(role,appointment,remunerationandevaluationof
theperformanceoftheexternalauditors);
• V.3enV.4(externalauditors’relationshipand
communicationswithcompanybodies).
CorporateGovernance
54|EBNAnualReport2009
General
FinancialStatements
TheExecutiveBoardhaspreparedand,byresolution
of16March2010,formallyapprovedthefinancial
statementsofEnergieBeheerNederlandB.V.(EBN)
forthe2009financialyear.Thefinancialstatements
weresubsequentlysubmittedtotheSupervisoryBoard
forapprovalandsigning.PursuanttoArticle20.2of
theArticlesofAssociation,theSupervisoryBoard
alsoprovidesapreliminaryrecommendationtothe
shareholders.Thefinancialstatementswillbesubmitted
totheGeneralMeetingofShareholderson27April2010,
wheretheywillbeadoptedandsubsequentlypublished.
AllsharesinEBNareheldbytheDutchState.
ThefinancialstatementsofEBNforthe2009financial
yearhavebeenpreparedinaccordancewiththe
InternationalFinancialReportingStandards(IFRS)
andinterpretationsoftheInternationalFinancial
ReportingInterpretationCommittee(IFRIC)effectiveat
31December2009andasacceptedforapplication
withintheEuropeanUnion.
55 | Section4-Profit-FinancialStatements
ThefinancialstatementsofEBNpertainmainlyto
EBN’sshareinjointventuresinthefieldofoiland
gasproductionintheNetherlandsandtheDutchpart
ofthecontinentalshelf.Theinformationshownrelates
toEBN’sshareintheassetsandliabilitiesaswellasin
therevenuesandexpensesofsuchjointventures.
EBNalsohasshareholdingsinanumberofcompanies.
Joint ventures
Jointventuresaredefinedascontractualorother
arrangementswithpartnerswithwhomEBNjointly
performsactivities.Theseactivitiesuseassetsthatare
jointlycontrolledbyEBNanditspartners.EBNaccounts
forthesejointassetsandrelatedliabilities,expensesand
revenuesproportionallyinthefinancialstatements.
The‘MaatschapGroningen’[GroningenPartnership]
isthemainjointventure.Intotal,EBNparticipatesin
22onshoreproductionlicences,103offshoreproduction
licences,45explorationlicences,theEmmengas
purificationplantand4undergroundnaturalgasstorage
facilities.EBNalsoparticipatesintheK13-DenHeldergas
processingplantandpipeline,theK13-Extensionpipeline
(throughasubsidiary)andtheF3/A6Extensionpipeline
(throughasubsidiary).Theparticipationpercentagesin
thesejointventuresrangefrom40%to50%.
EBNholds100%ofthesharesinK13Extensie
BeheerB.V.andF3/A6ExtensieB.V.asaresultof
theaboveparticipationsintheK13ExtensionandF3/
A6Extensionpipelines.Thefinancialsignificancefor
EBNofthesetwoparticipationsisnotmaterial.These
participationshavethereforenotbeenconsolidated.
ThefinancialstatementsofEBNconsequentlyreflect
boththeconsolidatedandnon-consolidatedposition.
Associates
EBNparticipatesfor40%inGasTerraB.V.andfor45%
inNOGATB.V.Inaddition,EBNhasa12%interestin
NGT-Extensie.
56|EBNAnualReport2009
General
Unlessstatedotherwise,thefinancialstatements
havebeenpreparedinaccordancewiththehistorical
costconvention.
Conversion of foreign currencies
Theeuroisthefunctionalandreportingcurrencyof
EBN.Thisalsoappliestojointventures.Commercial
transactionsandborrowingsinforeigncurrencies
areshownintheaccountsatthespotexchange
ratesapplicableonthetransactiondates.Balance
sheetitemsdenominatedinforeigncurrenciesare
convertedatthespotexchangeratesapplicableon
thebalancesheetdate.Differencesinexchangerates
resultingfromsettlementofthesetransactionsand
conversionofbalancesheetitemsaretakentothe
resultfortheyear.
Current versus long-term assets
and liabilities
Anassetisclassedascurrentifitisexpectedtobe
realisedwithin12monthsofthebalancesheetdate.
Aliabilityordebtisclassifiedascurrentifitwillbe
settledwithin12monthsofthebalancesheetdate.
Property, plant and equipment
Exploration wells
Expensesforexplorationwellsarecapitalised
(wellsunderconstruction).Ifanexplorationwell
turnsouttobedry,thecostsincurredaretakento
theresult.Aslongasthereisnoproductionfrom
agasoroilexplorationwell,theassetconcerned
isnotdepreciated.
Expensesrelatedtoexplorationwellsthatareolder
than12monthsarechargedtotheresult,unless:
(i) theyarelocatedinanareawheresignificantcapital
investmentsarerequiredbeforeproductioncan
commence,and
(ii) commerciallyrecoverablequantitieshavebeen
found,and
(iii)furtherexplorationorappraisalactivitiesaretaking
place,i.e.additionalexplorationwellsarebeing
drilledortherearedefiniteplanstodothisin
thenearfuture.
TheExecutiveBoardregularlyevaluateswhetherit
isappropriatetocapitaliseandcontinuecapitalising
expensesrelatingtoexplorationdrilling.Exploration
wellsolderthan12monthsareadditionallyevaluated
todeterminewhetheranyfactsorcircumstanceshave
changedandwhethertheabovecriteriastillapply.
Principles for the valuation of assets and liabilities and determination of profit
57 | Section4-Profit-FinancialStatements
Reimbursement
Thecostsofreimbursementspaidtopartners–mainly
explorationcostsandinterestpaymentsrelatedto
provenreserves–arecapitalisedandamortisedonthe
basisoftheunit-of-productionmethod(seenextsection
foranexplanation).
Property, plant and equipment for production
Property,plantandequipmentfortheproduction
ofoilandgasandotherfixedassetsareshown
atcostlessdepreciationandanyimpairmentin
value.Replacementinvestmentsthatconstitute
improvementsarecapitalised,whereasidentical
replacementinvestmentsaretakentotheresult.
Theestimatedcostsofdecommissioning,abandoning
andremovingplatformsandotherinstallationsare
capitalisedaspartofthecostofthetangiblefixed
assetconcerned.
Property,plantandequipmentfortheproduction
ofoilandgasaredepreciatedonthebasisofthe
unit-of-production(UoP)method:theratiobetween
theproductioninthefinancialyearandthereserves
asat1Januaryofthatfinancialyear.Thesereserves
aredeterminedinaccordancewiththedefinitions
laiddownbySPE,WPC,AAPGandSPEEinthe
PetroleumResourcesManagementSystem.
Otherproperty,plantandequipmentaredepreciated
onastraight-linebasisovertheirestimateduseful
economiclife.Formaintransportpipelinesand
facilitiesfortheundergroundstorageofnatural
gas(UGSs),aneconomiclifeof20yearsisinitially
estimated.Forbuildings,aneconomiclifeof10years
isassumed.Landisnotdepreciated.
Theestimatedremainingeconomiclifeofthese
property,plantandequipmentisreassessedevery
year.Economicandtechnologicalobsolescenceand
normalwearandteararetakenintoaccount.
Atangiblefixedassetisnolongerincludedinthe
balancesheetonceithasbeendivestedorwhenno
futureeconomicbenefitsareexpectedfromitsfurther
useorintheeventofsurrenderofthelicenceorsaleof
theasset.Anygainorlossresultingfromtheassetno
longerbeingincludedinthebalancesheetistakento
theresult.
58|EBNAnualReport2009
Borrowing costs of major projects
Financingcostsofmajorprojectshavebeencapitalised
since1January2009.Theinterestrateusedforthe
financialyearisbasedontheaverageinterestrate
applyingonlong-termborrowingsinthatfinancialyear.
Onceanassetisputintooperation,itsfinancingcosts
willnolongerbecapitalisedandthecumulativeinterest
willbedepreciatedonthebasisoftheUoPpercentage
oftheassetconcerned.
Financial fixed assets
AnassociateisaninterestinanentityonwhichEBN
canexertsignificantinfluence,butoverwhichitcannot
exercisedecisivecontrol.Associatesareshownin
accordancewiththeequitymethod.Thismeansthat
EBN’sshareinanassociateisshownasEBN’ssharein
thenetassetsofthisentity,lessanyimpairment.EBN’s
shareintheprofitorlossoftheassociateistakentothe
resultfortheyear.
IfEBN’sshareinthelossofanassociateexceedsthe
carryingamountofthatparticipation,includingany
otherreceivables,thecarryingamountisreducedtonil.
Nofurtherlossesareaccountedfor,unlessEBNhas
assumedresponsibilityfortheassociatethrough
aguaranteeorothercommitments.
Unrealisedgainsandlossesontransactionswith
associatesareeliminatedinproportiontoEBN’sshare
intheseentities.
Impairment
Anassessmentismadeoneachbalancesheetdate
astowhetherthecarryingamountofanon-current
asset(atangibleorfinancialfixedasset)exceedsits
realisablevalue(thehigheroftheindirectanddirect
realisablevalues).Inthiscase,thevalueoftheasset
willbedeemedtobeimpaired.Ifanassetdoes
notgeneratesufficientindependentcashflow,the
realisablevalueisdeterminedforthecash-generating
unittowhichtheassetbelongs.AtypicalEBN
cash-generatingunitisafield.Todeterminethe
indirectrealisablevalue,estimatedfuturecashflows
arediscountedataratebeforetaxes,onthebasisof
themarketinterestrateplusamark-upfortheasset’s
specificrisks.
Iftherealisablevalueofanassetislowerthanthe
carryingamount,thecarryingamountwillbereduced
totherealisablevalue.Impairmentcanbereversed,
eitherwhollyorpartially,intheeventofachangein
theestimatethatisofsignificancefordetermining
therealisablevalue.
Impairmentsareshownasaseparateiteminthe
statementofcomprehensiveincome.
Inventories
Inventoriesofmaterialsandequipmentareshown
atthelowerofaveragepurchasepricesornet
realisablevalues.Inventoriesofabove-ground
condensateandoilareshownattheirnetrealisable
valuesattheyear-end.
59 | Section4-Profit-FinancialStatements
Receivables
Receivablesareshownattheiramortisedcost
priceslessanyamountdeemednecessaryfor
doubtfuldebts.
Cash and cash equivalents
Wedefinecashandcashequivalentsascashinhand,
bankbalancesanddepositswithbankswitharemaining
termtomaturityoflessthanthreemonths.Amounts
owedtobanksareshownasshort-termliabilities.
Cashandcashequivalentsareshownatfacevalue.
Shareholder’s equity
TheDutchStateisEBN’ssoleshareholder.Thedividend
payabletothisshareholderisshownasaliabilityin
theperiodforwhichitisdue,inaccordancewiththe
managementagreementwiththeDutchState.An
exceptiontothisruleismadefortheproposedfinal
dividend,whichdoesnotbecomealiabilityuntilithas
beenapprovedbytheGeneralMeetingofShareholders.
Provisions
Provisionsareshowninthebalancesheetifthe
followingconditionsaresatisfied:
(i) thereisalegaloractualobligationasa
consequenceofaneventinthepast,and
(ii) itislikelythatassetswillbewithdrawnfromthe
companyinordertomeetthisobligation,and
(iii)theamountoftheobligationcanbereliably
estimated.
Iftheeffectofthetimevalueofmoneyismaterial,
provisionsaredeterminedbycalculatingthepresent
valueoftheforecastcashflowsatadiscountratebefore
tax.Whenthepresentvalueshavebeencalculated,
increasesinprovisionsasaresultofthepassingof
timearetreatedasinterestcharges.Theprovisionfor
deferredtaxliabilitiesisshownatitsnominalvalue.
Theprovisionfordecommissioningandrestoration
costsisdesignedtocoverthecosts,asestimated
atthestartofproduction,ofdecommissioning,
abandonmentandlandrestorationonthebasisof
present-dayrequirements,technologyandprice
levels.Changesintheestimatesforthisprovision,
asprovidedtoEBNbytheoperators,resultin
correspondingchangesintheacquisitioncostsofthe
property,plantandequipmentconcerned.
Theprovisionforgroundsubsidenceisdesignedto
covercertainadditionalliabilitiesarisingduringthe
productionphase.
Liabilities
Outstandingborrowingsareshownatamortisedcost,
withloansinforeigncurrenciesbeingconvertedatthe
exchangeratesapplyingonthebalancesheetdate.
Premiumsordiscountsonloansareamortisedduring
thetermtomaturityoftheloanconcerned.Interest
expenseistakentotheresultintheperiodtowhich
itpertains.
60|EBNAnualReport2009
Contingent assets and liabilities
Contingentassetsandliabilitiesarenotshowninthe
balancesheet.
Emission rights
Asaresultofitsinterestsinthevariousjointventures,
EBNmustcomplywithlegislationdesignedtoreduce
greenhousegasemissions.Theoperatortradesthe
emissionrightsonbehalfofthejointventurepartners.
Theoperatorreservesemissionrightsinordertobe
abletosatisfydeliveryobligations.Theserightsare
notshowninthebalancesheet.Incomeisreported
whentheoperatorsellsEBN’sshareinsurplus
emissionrights.Iftheoperatorhastopurchase
additionalemissionrights,EBNrecordsanexpense
totheextentofitsshare.
Net sales
Netrevenuesfromthesaleofgas,oilandcondensate
areaccountedforatthetimeofdelivery,whichis
whenownershipofandtherisksassociatedwiththe
deliveredgoodspasstothebuyer.Revenuesfromoil
andgasproductiongeneratedfromassetsinwhich
EBNparticipateswithotherproducersareshownin
proportiontoEBN’srelativeinterestintheseassets.
Operating costs
Expensesaredeterminedonthebasisofhistoricalcost.
Theseexpensesincludetheshareintheexpensesofthe
jointventurethatcorrespondswithEBN’sinterest,aswell
asthecostsofmanagingthejointventure.Theoperating
costsalsoincludepaymentstotheDutchState.
Financial income and expense
Interestincomeandexpenseareshownonatime-
proportionatebasis.Interestexpensealsoincludes
interestaccruedonprovisions.
Share of the profit of associates
Theshareintheresultoffinancialfixedassetsis
shownastheshareoftheresultsfortheyearunder
reviewcorrespondingwithEBN’sinterest,after
deductionoftaxes.
Taxes
Taxesonprofitsaredeterminedinaccordancewith
thebalancesheetmethod.Taxliabilitiesareshown
inthestatementofincomeandexpenseexcept
insofarastheyrelatetoanitemincludedinsundry
unrealisedresults.
Currenttaxesaretaxesthatareexpectedtobe
paidonthetaxableprofitfortheyear,basedonthe
taxratesapplyingonthebalancesheetdate,net
ofanyadjustmentsfortaxespayableinrespectof
previousyears.
Deferredtaxassetsandliabilitiesareshownonthe
basisoftheexpectedfiscalconsequencesoftiming
differencesbetweenthefiscalandcommercial
carryingamountsofassetsandliabilities.Deferredtax
assetsandliabilitiesarecalculatedonthebasisofthe
applicableorsubstantivelydeterminedtaxrateson
thebalancesheetdateandinaccordancewiththe
taxregulationsexpectedtoapplywhenthespecific
deferredassetsandliabilitiesaresettled.
61 | Section4-Profit-FinancialStatements
Financial derivatives
Financialderivativesareinitiallyshownatfairvalue
andsubsequentlyshownateachbalancesheet
dateattheirthenfairvalue.Anyresultantgainsor
lossesaretakentotheresult.EBNdoesnotapply
hedgeaccounting.
International Financial Reporting Standards
(IFRS)
The2009financialstatementstakeaccountofthe
consequencesofthefollowingstandards,whichhave
appliedsincethestartofthe2009financialyear:
(i) IFRS7,FinancialInstruments:disclosures
(ii) IFRS8,OperatingSegments
(iii) IAS1,PresentationofFinancialStatements
(iv) IAS23,BorrowingCosts.
The2009financialstatementsdonottakeaccount
oftheconsequencesofthefollowingstandards,the
applicationofwhichhasbeeninforcesincethestart
ofthe2009financialyear.Thesestandardsarenot
applicabletoEBNandthereforehavenoeffect:
(i) IFRS2,Share-basedPayment
(ii) IAS27R,ConsolidatedandSeparateFinancial
Statements
(iii) IAS32Amendment,FinancialInstruments:
Presentation
(iv) IAS39Amendment,FinancialInstruments:
RecognitionandMeasurement
(v) IFRIC9,ReassessmentofEmbeddedDerivatives
(vi) IFRIC12,ServiceConcessionArrangements
(vii)IFRIC13,CustomerLoyaltyPrograms
(viii)IFRIC15,AgreementsfortheConstructionof
RealEstate
(ix) IFRIC16,HedgesofaNetInvestmentin
aForeignOperation
(x) IFRIC17,DistributionsofNon-cashAssets
toOwners
(xi) IFRIC18,TransfersofAssetsfromCustomers
EBNhasoptednottoapplythefollowingnew
standards,amendmentstostandardsandnewIFRIC
interpretations,theapplicationofwhichismandatory
fromthe2010financialyearorsubsequentyears:
(i) IFRS3,BusinessCombinations;from2010.
EBNdoesnotexpectapplicationofthisnew
standard,amendmentstostandardsandnewIFRIC
interpretationstoresultinanymaterialconsequences
forthecompany’sfinancialstatements.
62|EBNAnualReport2009
Statement of comprehensive income
inmillionsofeuros
note 2009
changecomparedto2008 2008
netsales 2 6,387 -27% 8,698
levies 3 2,238 3,136
operationalcosts 4 722 669
depreciationandamortization 5 462 501
operatingexpenses 3,422 -21% 4,306
operatingprofit 2,965 -32% 4,392
financialincome 6 22 26
financialexpense 6 -89 -89
shareoftheprofitofassociates 7 52 51
pre-taxprofit 2,950 -33% 4,380
taxes 8 -739 -33% -1,111
profit 9 2,211 -32% 3,269
othercomprehensiveincome - -
Total comprehensive income 2,211 3,269
63 | Section4-Profit-FinancialStatements
Balance Sheet
inmillionsofeuros
Assets noteyear-end
2009year-end
2008 Liabilities noteyear-end
2009year-end
2008
Non-current assets Shareholders' equity 14
property,plantandequipment 10 3,448 3,404 sharecapital 128 128
associates 11 113 113 retainedearnings 30 32
3,561 3,517 158 160
Non-current liabilities
provisions 15 1,255 1,391
deferredtaxliabilities 8 40 78
borrowings 16 1,004 1,304
other 17 18 18
2,317 2,791
Current assets Current liabilities
inventories 12 12 9 borrowings 16 1,064 427
receivables 13 1,007 1,856 derivatives 19 0 22
derivatives 19 98 96 tax 246 417
cashandcashequivalents 0 68 other 18 893 1,729
1,117 2,029 2,203 2,595
Total 4,678 5,546 Total 4,678 5,546
64|EBNAnualReport2009
Summary of changes in shareholder’s equity
inmillionsofeuros
sharecapital retainedearnings totalequity
Balance at 1 January 2008 128 34 162
netprofit 3,269 3,269
finaldividend2007 -34 -34
interimdividend -3,237 -3,237
Balance at 31 December 2008 128 32 160
netprofit 2,211 2,211
finaldividend2008 -32 -32
interimdividend -2,181 -2,181
Balance at 31 December 2009 128 30 158
Retainedearningsof€30millionrepresenttheproposedfinaldividend.Thetotalearningsfor2009
amountedto€7,765pershare.Thiswasa32%decreaseincomparisonto2008.Pleasealsorefer
tonote14.
65 | Section4-Profit-FinancialStatements
Statement of Cash Flows
inmillionsofeuros
2009 2008
Operating activities
netprofitfromcontinuingoperations 2,211 3,269
conversiontonetcashprovidedbyoperatingactivities
-incomefromparticipations -52 -51
-dividendreceived 52 51
-depreciationandamortization 462 501
-changeinworkingcapital* 142 342
-changeinprovisions -11 28
-interest -onprofit 67 64
-received 20 26
-paid -56 -69
-taxes -onprofit 739 1,111
-received - -
-paid -774 -1,055
-transfers 45 30
634 977
Net cash provided by operating activities 2,845 4,246
Investing activities
property,plantandequipment -713 -651
Netcashusedininvestingactivities -713 -651
Financing activities
profitdistribution -2,481 -3,069
loanstakenup - -
repaymentofloans - -
changeindebtstocreditinstitutions 281 -476
Net cash provided by financing activities -2,200 -3,545
Change in cash and cash equivalents -68 50
Balance cash and cash equivalents at 1 January 68 18
Balance cash and cash equivalents at 31 December 0 68
* change in working capital
- inventories -3 6
- receivables 849 -442
- current liabilities (excluding loans, debts to credit institutions and profit distribution) -704 778
142 342
66|EBNAnualReport2009
(1) General information
Allamountsintheseexplanatorynotesareinmillionsofeuros,unlessstatedotherwise.
Estimatesandassessmentshavetobemadeforthepreparationofthefinancial
statements.Thesehaveconsequencesfortheamountsreportedforassetsandliabilities,
incomeandexpenditureitemsandtherelatedreportingofprovisionalassetsandliabilities
onthedateofthefinancialstatements.Theresultscanbeinfluencedbysuchestimates
andassessments.Inthosecases,theseexplanatorynotessetouttheprinciplesthat
managementconsiderstobethemostimportantandthatareusuallythemostdifficultto
estimateduetointrinsicuncertainties.Theprovisionfordecommissioningandrestoration
costsislargelybasedoninformationprovidedbytheoperators.Inprinciple,EBNadheres
totheinformationprovidedbyoperatorsregardingproductiondata.Provenandprobable
gasandoilreservesaredeterminedinaccordancewiththedefinitionslaiddownbySPE,
WPC,AAPGandSPEEinthePetroleumResourcesManagementSystem.Foramore
detailedexplanationofthemannerinwhichthisprovisioniscalculated,pleasereferto
the“Principlesforthevaluationofassetsandliabilitiesanddeterminationofprofit”,
‘Provisions’section,onpage59.
TheExecutiveBoardemphasisesthatfutureeventscandifferfromprojectionsandthat
estimatesmustbeadjustedregularly.
Notes to the Financial Statements of Energie Beheer Nederland B.V.
67 | Section4-Profit-FinancialStatements
Notes to the statement of comprehensive income
(2) Net sales
EBNperformsonemainactivity:explorationforandproductionofnaturalgasandoil.EBNhas
thereforedecidednottoprovidesegmentedinformationinthenotestothefinancialstatements.
TheentiresaleswereachievedintheNetherlands.TheassetsinwhichEBNparticipatesarealso
locatedintheNetherlands.Informationonthemaindebtorscanbefoundinnote23.
Netsalesin2009fromordinaryactivitiesamountedto€6,387million,representingadecreaseof
€2,311million(-27%)comparedto2008.
Theconsiderablereductioninsaleswasmainlyduetothelowerpricesachievedonsales(-23%),while
volumesalsodroppedby4%.Therelativelylowsalesofoil(1%ofthetotal)fellby65%in2009.This
reductionwasmainlyattributabletoasignificantfallinproductionandalsotolowerpricesperbarrel.
(3 en 4) Levies and operating costs
2009 2008
levies 2,238 3,136
operatingcosts 722 669
Levieswere€898million(-29%)lowerthanin2008.Thisitemmainlycomprisesthespecialpayments
madetotheDutchStateinrespectofproductionfromtheGroningenfieldin2009.Inotherwords,
theMORpaymentsamountingto€2,127millionandtheState’sshare€96million.Thedecreasein
thepaymentstotheStatein2009wasmainlyduetolowergaspricesin2009.Operatingcostsrelate
mainlytoproductionandtransportcosts.
InviewofEBN’sautonomisation,thecompanystartedofferingitsemployeesnewemployment
contractsfromthestartof2008.Attheendof2009,however,someemployeeswerestillseconded
byDSMtoEBN.Totalsalarycostsareincludedinoperatingcostsandamountedin2009to
€7.2million(2008:€6.7million),ofwhich€5.3millioncomprisedgrosssalaries,€0.3millionsocial
securitycosts,€1.0millionpensioncostsand€0.6millionothercosts.
68|EBNAnualReport2009
EBNhasadefinedbenefitpensionscheme,whichhasbeenpartoftheABPPensionFundsince
1January2008.EBNadministerstheschemeasadefinedcontributionpensionschemebecause
theinformationrequiredforactuarialcalculationsisnotavailable.Asatthebalancesheetdate,the
companydidnothaveanycontractualobligations–otherthanthepossibilityofhighercontributionsin
future–topayadditionalamountsintheeventofthepensionfundbeingindeficit.
(5) Depreciation and amortisation
2009 2008
depreciationofproperty,plantandequipment 433 409
depreciationofproperty,plantandequipmentbyreasonofabandonment 29 92
Total 462 501
Depreciationofthedecommissioningandrestorationcostsofassetsdecreasedconsiderablyasaresult
ofareductionintheestimateoftherequireddecommissioningandrestorationcosts.Pleaserefertonote
15forfurtherinformation.
(6) Financial income and expense
2009 2008
interestincome 22 26
otherfinancialincome - -
totalfinancialincome 22 26
interestexpense -52 -60
interestexpenseondiscountedprovisions -27 -24
otherfinancialexpenses -10 -5
totalfinancialexpenses -89 -89
Net financing costs -67 -63
69 | Section4-Profit-FinancialStatements
Despitetheconsiderablyhigheramountofcashavailableintheyearunderreview,interestincomewas
lowerthanin2008.Thiswasmainlyduetothesharpfallinshort-termmarketinterestrates.Likewise,
interestexpensewaslowerasaresultofthelowerinterestratepayableoncommercialpaper.
Otherfinancialexpensesin2009were€5millionhigherasaresultofloansbeingshownatamortised
costandderivativesbeingshownatfairvalue.
(7) Result of associates
2009 2008
-GasTerraB.V. 14 14
-NOGATB.V. 31 29
-NGT-Extensie 7 8
52 51
(8) Taxes
2009 2008
Current tax expense
-currentyear 777 1,103
-adjustmentforpreviousyear 0 8
Deferred tax expense
-arisingfromtemporarydifferences -38 -
Total 739 1,111
Theeffectivetaxchargefor2009was25.5%,virtuallythesameasin2008(25.6%).Thenominal
corporationtaxrateintheNetherlandsamountedto25.5%in2009(2008:25.5%).
70|EBNAnualReport2009
Netdeferredtaxassetsandliabilitiesdecreasedby€38millionasaresultofthefollowing:
2009 2008
Balance at 1 January
-deferredtaxassets 36 34
-deferredtaxliabilities -114 -113
Total at 1 January -78 -79
Movements:
-tangibleassets 49 2
-provisions -11 -1
Balance sheet at 31 December -40 -78
ofwhich:
-deferredtaxassets 25 36
-deferredtaxliabilities -65 -114
Wedefinedeferredtaxassetsandliabilitiesasfuturetaxassetsandliabilitiesarising,forexample,
fromtimingdifferencesbetweentheamountscalculatedinaccordancewithcommercialprinciples
andthosecalculatedfortaxpurposes.
(9) Net profit
Thenetprofitfor2009fromcontinuingactivitiesamountedto€2,211million,whichwas
€1,058million(-32%)lowerthanin2008.
71 | Section4-Profit-FinancialStatements
(10) Property, plant and equipment
Thecompositionofanddevelopmentsinthisitemareshowninthefollowingtable:
inmillionsofeuros
total
production,transport
andstoragefacilities wells
reimburse-ments
capitalisationof
abandonmentcosts
capitalexpenditure
&wellsunderconstruction
Balance at 1 January 2009
cost 10,244 5,421 2,280 1,412 734 397
depreciationandamortization 6,840 3,946 1,470 1,136 288 -
Carryingamount 3,404 1,475 810 276 446 397
Changes in 2009
cost:
-capitalexpenditure 713 171 73 16 - 453
-puntintooperation - 171 148 - - -319
-capitalisationofborrowingcosts 0 - - - - 0
-capitalisationofabandonmentcosts -163 - - - -163 -
-decommissioned -36 -33 -6 - 3 -
-otherchanges -45 - 0 - - -45
depreciation and amortization:
-depreciationandamortization -462 -240 -172 -21 -29 -
-decommissioned 37 34 6 - -3 -
44 103 49 -5 -192 89
Balance at year-end 2009
cost 10,713 5,730 2,495 1,428 574 486
depreciationandamortization 7,265 4,152 1,636 1,157 320 0
Carrying amount 3,448 1,578 859 271 254 486
Notes to the balance sheet
72|EBNAnualReport2009
Capitalexpenditurein2009,amountingto€713million,was24%higherthanin2008(€576million).
Thiswasallocatedfor€238million(2008:€129million)toonshoreprojectsandfor€475million
(2008:€447million)tooffshoreprojects.
Thereductionintheamountcapitalisedfortheestimateddecommissioningandrestorationcostsofinstallations
in2009wasanegative€163million(2008:positive€93million).Pleaserefertonote15forfurtherinformation.
AsaresultoftheapplicationofIAS23“borrowingcosts”,anamountof€0.3million(appliedrate3.8%)
wascapitalisedaspartofthecostsfortheBergermeergasstorage.
(11) Associates
EBNdefinesasassociatesits40%participationinGasTerraB.V.,its45%participationinNOGATB.V.anda
numberofsmallerparticipations,includingthe12%participationintheNGTExtension.Thelatterparticipationis
includedunder‘sundry’.
Associatesareshownonthebasisoftheequitymethod.Theresultisdistributedannually,andsothereisno
changeintheamountsforwhichtheparticipationsareshowninthebalancesheet.
GasTerra NOGAT other
2009
total GasTerra NOGAT other
2008
total
Balance at 1 January 86 13 14 113 86 13 14 113
shareofprofits 14 30 8 52 14 29 8 51
dividendreceived -14 -30 -8 -52 -14 -29 -8 -51
Balance at 31 December 86 13 14 113 86 13 14 113
ThefollowingtableshowssummarisedfinancialinformationontheassociatesGasTerraB.V.,NOGATB.V.
andtheNGTExtensionona 100%-basis.
73 | Section4-Profit-FinancialStatements
GasTerrraNOGATNGT-
Extensie2009total GasTerrra NOGAT
NGT-Extensie
2008total
balancesheettotalassets 3,295 129 11 3,435 5,257 122 15 5,394
liabilities 3,079 6 8 3,093 5,039 3 8 5,050
netsales 18,310 113 76 18,499 23,953 101 86 24,140
netprofit 36 71 57 164 36 65 64 165
(12) Inventories
2009 2008
materials 7 7
condensateandoil 5 2
Total 12 9
(13) Receivables
Thesecanbespecifiedasfollows:
2009 2008
accountsreceivablesfromassociates 883 1,751
othertradeaccountsreceivable 120 88
totaltradeaccountsreceivable 1,003 1,839
otherreceivablesanddeferreditems 4 17
Total 1,007 1,856
Receivablesfellby€849million(-46%),mainlyasaresultofpricesinthefourthquarterof2009beinglower
thaninthefourthquarterof2008.
Theitem‘Associates’relatestoGasTerraB.V.,inwhichEBNparticipatesfor40%.Thetermsofpayment
agreedwithGasTerraB.V.varyfrom30to60days;thesetermsarecompliedwith.
Forinformationonfinancialriskspleaserefertonote19.
74|EBNAnualReport2009
(14) Shareholder’s equity
2009 2008
Balance at 1 January 160 162
netprofit 2,211 3,269
finaldividendpreviousyear -32 -34
interimdividend -2,181 -3,237
Balance at 31 December 158 160
EachmonthEBNpaystheestimatedoractualprofittotheshareholder.Theseperiodicprofit
paymentslargelydetermineEBN’sbalancesheetstructureandresultinacomparativelysmall
amountofshareholders’equity.Ontheotherhand,thecompanyhasverysubstantialcashflow
throughouttheyear.EBN’sfinancingpolicyisbasedonmaintainingfreeaccesstothemaincapital
markets.Tothisend,EBNhasratingsfromMoody’sandStandard&Poor’s,andthesehavebeen
stableformanyyearsattripleA.
Issuedandpaid-insharecapitalamountedto€128millionatthe2009year-end(2008:€128million),
consistingof284,750shares,eachwithanominalvalueof€450.00.
Theproposedfinaldividendof€30millionwillbedistributedaftertheGeneralMeetingofShareholders
hasadoptedthefinancialstatements.Thisamountisthetotalofthenetprofitof€2,211millionless
theinterimdividenddistributedof€2,181million.Theproposedfinaldividendhasnotbeendeducted
fromshareholder’sequity.
75 | Section4-Profit-FinancialStatements
(15) Provisions
Provisionsfordecommissioningandrestorationcostscovercommitmentswithtermsof1to30
years.Provisionsforgroundsubsidencealsocovercommitmentswithtermsof1to30years.
Totalprovisionsdecreasedby€136million,asshowninthefollowingtable:
abandonmentcosts subsidence total
Balance at 1 January 2008 1,214 56 1,270
additions - 3 3
used -14 - -14
revision 107 - 107
interest 24 - 24
Balance at 31 december 2009 1,331 59 1,391
additions - 1 1
used -10 - -10
revision -153 - -153
interest 27 - 27
Balance at 31 december 2009 1,195 60 1,255
Thedownwardadjustmenttotheprovisionfordecommissioningandrestorationcostsof
€136millionismainlyduetotheupdatingoftheestimatedcostsofabandoninginstallations.
Themainreasonforthisisafallinrigratesandnewinsightsonthedatesonwhichproduction
willend.
Thepresentvaluesweredeterminedusingthesamediscountrate(2%)asin2008
(realinterestmethod).
76|EBNAnualReport2009
(16) Short-term and long-term borrowings
total
2009ofwhich
shortterm total
2008ofwhich
shortterm
debentureloans 1,193 302 1,189 -
privateloans 113 - 115 -
commercialpaperstakenup 762 762 427 427
Total 2,068 1,064 1,731 427
Theincreaseinoutstandinglong-termborrowingsamountedto€337million(19%),mainlyasaresult
offundingtheyear-enddeficitwithcommercialpaper.In2010,twoloansamountingtoCHF450
millionintotalwillberedeemed.Theseareshownasshort-termloansin2009.
Nosecurityhasbeenprovidedfortheoutstandingloans(totalremainingdebtatthe2009year-end:
€2,068million).Theloanagreementscontainprovisionsthatlimittheprovisionofsecurity.
Long-term borrowings
Long-termborrowingsinthebalancesheetcomprisethefollowing:
2009 2008
CHF 100million 2.315% publicloan 2004/2010 - 67
JPY 5,000million 1.59% privateloan 2004/2014 38 37
CHF 350million 1.625% publicloan 2005/2010 - 236
CHF 350million 1.75% publicloan 2005/2012 235 234
CHF 450million 2.75% publicloan 2006/2013 302 301
CHF 400million 3.00% publicloan 2007/2014 269 267
CHF 125million 3.00% publicloan 2007/2014 84 84
JPY 10,000million 1.775% privateloan 2007/2017 76 78
1,004 1,304
77 | Section4-Profit-FinancialStatements
Loansinforeigncurrencieshavebeenconvertedintoeurosusingswaps.Alllong-termloanshave
fixedinterestrates,withtheexceptionoftheJPY2004/2014loan,whichwasconvertedtoavariable-
interestloaninOctober2009.Theaverageinterestrateonalllong-termsloansin2009was3.7%
(2008:3.8%).
Thefollowingtableliststheoutstandingloans,includingtheloansthathavetoberepaidwithin
ayear,inorderoftheirtermtomaturity.Thetableshowsoutstandingloans,excludingdebtsto
financecompanies.
withinoneyear 302
within1to2years -
within2to3years 235
within3to4years 302
within4to5years 391
after5years 76
Total 1,306
Morethan50%oftheoutstandinglong-termloanshavearemainingtermtomaturityofmore
thanthreeyears.
(17) Other non-current liabilities
Thisitemrelatesmainlytoadebtof€17milliontotheDutchStateresultingfromtheGasTerraB.V.
stockdividend.
78|EBNAnualReport2009
(18) Other current liabilities
Thisitemcanbespecifiedasfollows:
2009 2008
tradeaccountspayable 254 154
interestpayments 12 12
levies 375 1,028
otherliabilities 252 535
Total 893 1,729
ThedecreaseinleviesismainlyduetothelowerMORobligation.
(19) Financial derivatives
Policytocontrolfinancialrisks
General
ThemainfinancialrisksforEBNaretheliquidityrisk,thecreditriskandthemarketrisk(consisting
oftheinterestrateriskandcurrencyrisk).EBN’sfinancialpolicyfocuses,intheshortterm,on
limitingtheeffectsofcurrencyandinterest-ratefluctuationsontheresult,and,inthelongterm,on
monitoringthedevelopmentofmarketexchangeratesandmarketinterestrates.EBNusesfinancial
derivativestomanagetheinterestrateandcurrencyrisksrelating,inparticular,tothefundingofits
activities.Thecompanydoesnottakeanyspeculativepositionswithfinancialderivatives.
Liquidity risk
EBNhasacommercialpaperprogrammeof€2,000million.Thisisthesameasin2008.
Atthe2009year-end,€1,238millionofthishadnotbeendrawn.ItisEBN’spolicynottorepayloans
andassociatedderivativesearly,butinsteadtorepaythemonthecontractuallyagreedmaturitydate.
79 | Section4-Profit-FinancialStatements
Thefollowingtableshowsthescheduleofexpectedrepayments,alongwiththeinterestpayableonthe
loansandthecostsofsettlingtheassociatedderivatives:
2009 2009 2008
borrowingsInterest
paymentscashat
redemption cashswaptotal
cashouttotal
cashout
withinoneyear 302 -44 -302 12 -334 -45
within1to2years - -36 - - -36 -335
within2to3years 235 -36 -235 9 -262 -35
within3to4years 302 -26 -302 14 -314 -262
within4to5years 391 -15 -391 39 -367 -315
after5years 76 -1 -76 15 -62 -428
Total 1,306 -158 -1,306 89 -1,375 -1,420
Cashmovementsinshort-termloansandshort-termreceivableswillbeeffectedwithinayearandatthe
carryingamounts.
Credit risk in connection with deposits
EBNlimitsthecreditriskbyonlydoingbusinesswithfinancialinstitutionswithhighcreditworthinessand
bysettingspecificcreditlimitsforeachfinancialinstitution(atleastP1orA2accordingtoMoody’s).Due
totheseasonalpattern,themaximumpositiveliquiditypositionduring2009amountedto€2,071million
andoccurredinthemonthofApril.ThankstoEBN’srisk-avoidancepolicy,EBNdidnotsufferanylossesin
2009asaconsequenceofthebankingcrisis.
ThemaximumcreditrisktowhichEBNisexposedconsistsmainlyoftheamountithasondepositat
financecompaniesatanytime.Onthereportingdate,therewasnocauseforreducingthecompany’s
maximumcreditriskbyreasonofsignificantagreementsorfinancialinstruments.
Debtor risk
In2009,EBNsold93%(2008:92%)ofitssalestoGasTerra,whichisahigh-qualitydebtor.
80|EBNAnualReport2009
Interest rate risk
Theobjectiveoftheinterestrateriskpolicyistolimitinterestraterisksarisingfromthefundingof
thecompanyandthustooptimisenetinterestexpense.Ofthefundsborrowedforlongerterms
(includingamountstoberepaidwithinoneyear),nomorethan60%willhaveavariableinterestrate.
Withoneexception,alllong-termloanshavefixedratesofinterest.
Thefollowinganalysisofthesensitivityofloansdrawndownandtherelatedinterestratederivatives
isbasedonadirectchangeof1percentagepointintheinterestratesforallcurrenciesandmaturities
asat31December2009.Allothervariablesareassumedtobeunchanged.Areductionof1%in
interestrateswouldresultinanestimateddecreaseof€8millioninnetfundingexpense,based
onthepositionasat31December2009.Anincreaseof1%ininterestrateswouldresultinan
estimatedincreaseof€8millioninnetfundingexpenses.
Thefollowingtableshowsthesensitivityofthefairvalueofthefinancialinstrumentstochangesin
interestratesasat31December2009:
2009carryingamount marketvalue
changemarketvalue
+1%
changemarketvalue
-1%
cashandcashequivalents 0 0 - -
short-termborrowings -1,064 -1,067 5 -5
long-termborrowings -1,004 -1,020 37 -39
crosscurrencyswapsusedforlong-termborrowings 78 78 -9 10
forwardexchangecontractsusedforshort-termborrowings 20 20 0 0
forwardexchangecontractsusedforhedging - - - -
In2008,totalsensitivitytochangesininterestrateswithregardtothefairvalueofthefinancial
instrumentsrangedbetweenapositiveamountof€46million(+1%changeininterestrates)anda
negative€49million(-1%changeininterestrates).
81 | Section4-Profit-FinancialStatements
Currency risk
EBNfullyhedgescurrencyrisksarisingfrompurchasesandsalesatthetimethatthetradereceivables
ortradeliabilitiesarise.
Therewerenopositionstobehedgedatthe2009year-end,aswasthecaseatthe2008year-end.
Thefollowinganalysisofthesensitivityofthenetdebt(includingfinancialderivatives)tofluctuationsin
exchangeratesagainsttheeuroisbasedona10%changeinallexchangeratesversustheeuro,based
ontheirlevelat31December2009,withallothervariablesremainingunchanged.Achangeof+10%
impliesthattheeuroweakensagainsttheforeigncurrencies,whileachangeof-10%impliesthatthe
eurostrengthensagainsttheforeigncurrencies.
2009carryingamount marketvalue
changeinvalue+10%
changeinvalue-10%
cashandcashequivalents 0 0 - -
short-termborrowings -1,064 -1,067 -64 53
long-termborrowings -1,004 -1,020 -114 93
crosscurrencyswapsusedforlong-termborrowings 78 78 117 -96
forwardexchangecontractsusedforshort-termborrowings 20 20 64 -53
forwardexchangecontractsusedforhedging - - - -
In2008,thesensitivitytomovementsinexchangeratesrangedbetweenapositive€4million
(+10%changeinallexchangerates)andanegative€4million(-10%changeinallexchangerates).
82|EBNAnualReport2009
Market value of financial instruments
Thetablebelowsummarisesthecarryingamountsandtheestimatedmarketvaluesoffinancial
instruments.
31December2009 31December2008
carryingamount marketvalue carryingamount marketvalue
Assets
associates 113 113 113 113
currentreceivables 1,007 1,007 1,856 1,856
financialderivatives 98 98 96 96
cashandcashequivalents 0 0 68 68
Liablilties
long-termborrowings 1,004 1,020 1,304 1,303
short-termborrowings 1,064 1,067 427 425
financialderivatives 0 0 22 22
othercurrentliabilities 1,139 1,139 2,146 2,146
Themarketvalueoffinancialinstrumentsisdeterminedonthebasisofthefollowingmethodsand
assumptions:short-termreceivables,cashandcashequivalentsandshort-termdebtsareshown
attheircarryingamounts.Inviewoftheshorttermtomaturityoftheseinstruments,theseamounts
areclosetotheirmarketvalues.
Themarketvaluesofloansandfinancialderivativesassociatedwithlong-termloansarecalculated
onthebasisofthenetpresentvaluemodel,applicablemarketinterestcurvesandexchangerates.
Theinformationneededtocalculatethesefairvaluesisbasedonobservablemarketdata,obtained
fromaccessiblemarketparties(includingReuters)deemedreliableandindependent.
83 | Section4-Profit-FinancialStatements
Thefollowingtablesummarisesthecarryingamountsoffinancialderivativesspecifiedaccordingtotype
andobjective:
currentassets
currentliabilities total
interestrateswaps - - -
currencyswaps 96 -22 74
Balance at 31 December 2008 96 -22 74
interestrateswaps - - -
currencyswaps 98 - 98
Balance at 31 December 2009 98 - 98
84|EBNAnualReport2009
(20) Rights and obligations not shown in the balance sheet
Asindicatedintheaccountingprincipleswithrespecttothevaluationofassetsandliabilities
andthedeterminationoftheresult,EBNparticipatesinnumerousjointventures.Thebasis
forthisislaiddowninagreementsofcooperation,fromwhichmulti-yearfinancialrightsand
obligationsariseforthefuture.Itisimpracticaltodeterminethesizeofthesefuturefinancial
rightsandobligations.Asanindication,theremainingobligationsatthe2009year-endfor
threemajorinvestmentprojects(Schoonebeekoilproduction,theBergermeergasstorage
facilityandtheK5CUgas-developmentproject)amountedto€447million.
EBN’s(in)directshareingasreservesfromfieldsinwhichEBNpartipatesamountson
December31st,2009491miljardm3GE.
(21) Net debt
2009 2008
Borrowings
long-termborrowings 1,004 1,304
short-termborrowings 1,064 427
Total Borrowings 2,068 1,731
cashandcashequivalents 0 -68
financialderivatives,assets -98 -96(whereapplicablealsoseenote19)
financial derivatives, liabilities 0 22
Net debt (A) 1,970 1,589
Shareholders' equity (B) 158 160
Gearing ratio A/(A+B)*100% 93% 91%
Other explanatory notes
85 | Section4-Profit-FinancialStatements
(22) Notes on the cash flow statement
Thecashflowstatementwaspreparedonthebasisoftheindirectmethodandacomparison
wasmadebetweentheopeningandclosingbalancesheets.Changesnotresultinginan
infloworoutflowofcash,suchasexchangeratemovements,weresubsequentlyeliminated.
Theseincludevalueadjustmentsandtransfersbetweenaccountsinthebalancesheet.
Movementsinthecashflowstatementcanlargelybederivedfromthestatementsofchanges
intherelevantbalancesheetitems.
(23) Related parties
UndertheGasAct,GasTerraB.V.andEBNareassociatedcompanies.EBNhasatotalof62
contractswithGasTerraB.V.andaninterestineachcontractofatleast€5million.
Ofthenetsalesof€6,387million,€5,930millionwasgeneratedthroughGasTerraB.V.
(2008:€8,698millionand€8,037millionrespectively).
Thefigureshownforreceivablein2009includesanamountof€883million
(2008:€1,751million)relatingtodeliveriestoGasTerraB.V.
TheDutchState,beingtheshareholder,canberegardedasanrelatedparty.
86|EBNAnualReport2009
(24) Directors’ remuneration
TwomembersofEBN’sExecutiveBoardhaveemploymentcontractswithEBNandthe
otherBoardmemberhasbeensecondedbyDSM.Thetotalremunerationpaidtothe
ExecutiveBoardin2009amountedto€0.8million(2008:€0.7million).Inviewoftheexisting
agreementswithDSMonthismatter,nospecificationofthesalariescanbeprovided.
RemunerationoftheSupervisoryBoardmembersamountedto€0.1millionin2009
(2008:€0.1million).
(25) Fees paid to external auditors
FeespaidtoErnst&Young,whichareincludedinoperatingcosts,amountedin2009to
€518,000forauditservices(companyandjointventureaudits)(2008:€517,000),€5,000
fortaxadvice(2008:€8,000)and€11,000forotherservices(2007:€11,000).
Utrecht,24March2010
ExecutiveBoard
J.D.Bokhoven
J.W.P.M.Haenen
D.G.Roest
SupervisoryBoard
R.M.J.vanderMeer
A.H.P.GratamavanAndel
G-J.Kramer
H.M.C.M.vanOorschot
87 | Section4-Profit-FinancialStatements
ProfitsareappropriatedinaccordancewiththeprovisionsinArticle21ofthecompany’sArticlesof
Association.Totheshareholder:
• anamountwillannualybedistributedasaspecialdistributionofprofits;
• theremainingamountwillbedistributedasdividend.
Profitappropriation
88|EBNAnualReport2009
To the General Meeting of Shareholders of Energie Beheer Nederland B.V.
Auditor’sreport
Report on the financial statements
Wehaveauditedtheaccompanyingfinancialstatements
2009ofEnergieBeheerNederlandB.V.,Utrecht,which
comprisethebalancesheetasatDecember31,2009,
thestatementofcomprehensiveincome,statementof
changesinequityandcashflowstatementfortheyear
thenendedandasummaryofsignificantaccounting
policiesandotherexplanatorynotes.
Board of Directors’ responsibility
TheBoardofDirectorsisresponsibleforthe
preparationandfairpresentationofthefinancial
statementsinaccordancewithInternationalFinancial
ReportingStandardsasadoptedbytheEuropean
UnionandwithPart9ofBook2oftheNetherlands
CivilCode,andforthepreparationofthereportofthe
BoardofDirectorsinaccordancewithPart9ofBook
2oftheNetherlandsCivilCode.Thisresponsibility
includes:designing,implementingandmaintaining
internalcontrolrelevanttothepreparationandfair
presentationofthefinancialstatementsthatarefree
frommaterialmisstatement,whetherduetofraudor
error;selectingandapplyingappropriateaccounting
policies;andmakingaccountingestimatesthatare
reasonableinthecircumstances.
Auditor’s responsibility
Ourresponsibilityistoexpressanopiniononthe
financialstatementsbasedonouraudit.Weconducted
ourauditinaccordancewithDutchlaw.Thislaw
requiresthatwecomplywithethicalrequirements
andplanandperformtheaudittoobtainreasonable
assurancewhetherthefinancialstatementsarefree
frommaterialmisstatement.
Anauditinvolvesperformingprocedurestoobtain
auditevidenceabouttheamountsanddisclosures
inthefinancialstatements.Theproceduresselected
dependontheauditor’sjudgment,includingthe
assessmentoftherisksofmaterialmisstatementofthe
financialstatements,whetherduetofraudorerror.In
89 | Section4-Profit-FinancialStatements
makingthoseriskassessments,theauditorconsiders
internalcontrolrelevanttotheentity’spreparationand
fairpresentationofthefinancialstatementsinorder
todesignauditproceduresthatareappropriateinthe
circumstances,butnotforthepurposeofexpressing
anopinionontheeffectivenessoftheentity’s
internalcontrol.Anauditalsoincludesevaluatingthe
appropriatenessofaccountingpoliciesusedandthe
reasonablenessofaccountingestimatesmadebythe
BoardofDirectors,aswellasevaluatingtheoverall
presentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtained
issufficientandappropriatetoprovideabasisforour
auditopinion.
Opinion
Inouropinion,thefinancialstatementsgiveatrueand
fairviewofthefinancialpositionofEnergieBeheer
NederlandB.V.asatDecember31,2009,andofits
resultanditscashflowsfortheyearthenendedin
accordancewithInternationalFinancialReporting
StandardsasadoptedbytheEuropeanUnionand
withPart9ofBook2oftheNetherlandsCivilCode.
Report on other legal and regulatory requirements
Pursuanttothelegalrequirementunder2:393sub5
partfoftheNetherlandsCivilCode,wereport,tothe
extentofourcompetence,thatthereportofBoardof
Directorsisconsistentwiththefinancialstatementsas
requiredby2:391sub4oftheNetherlandsCivilCode.
Maastricht,24March2010
forErnst&YoungAccountantsLLP
signedbyP.L.C.M.Janssen
90|EBNAnualReport2009
Glossary
Cluster Locationfromwhichmultiplewellscanbedrilled
CorporateGovernanceCode Codeofbehaviourforcompanieslistedonthestockexchange
COSO CommitteeofSponsoringOrganizationsoftheTreadwayCommission
CSR CorporateSocialResponsibility
Dashboard Reviewofcompany-specificperformanceindicators
EBN EnergieBeheerNederlandB.V.
E&P Explorationandproduction
EZ DutchMinistryofEconomicAffairs
Gasgebouw Public-privatecooperationintheGroningenPartnershipandGasTerra
GE Groningenequivalent
HSE Health,SafetyandEnvironment
HR HumanResources
ICT InformationandCommunicationTechnologies
IFRS InternationalFinancialReportingStandards
IMS IntegratedManagementSystem
LNG LiquefiedNaturalGas
91 | Section4-Profit
NAM NederlandseAardolieMaatschappij(DutchoilcompanyinwhichRoyalDutchShellandExxonMobilhaveequalshares)
NOGEPA NetherlandsOilandGasExplorationandProductionAssociation
Offshore Atsea
Onshore Onland
Scorecard Reviewofdepartment-specificperformanceindicators
SodM=SSM StaatstoezichtopdeMijnen=StateSupervisionofMines
TNO NetherlandsOrganisationforAppliedScience
Treasury Managementofthecompany’sfunds
92|EBNAnualReport2009
Key figures
EBN ten-year summaryamountsinmillionsofeuros
IFRS2009
IFRS2008
IFRS2007
IFRS2006
IFRS2005 2005 2004 2003 2002 2001 2000
No. of EBN joint ventures:
-productiononshore 22 21 20 14 14 14 14 14 14 14 14
-productionoffshore 103 100 95 85 85 85 77 77 70 66 63
-exploration 45 41 26 17 19 19 22 26 31 40 3
sales(billionm3,100%) 70 73 64 66 67 67 72 63 64 66 60
changein%comparedtopreviousyear(100%) -5 +11 -3 -1 -7 -7 +15 -4 -4 +10 -3
-fromGroningen (billionm3,EBNshare) 15 16 12 13 13 13 13 11 10 10 8
-fromsmallfields (billionm3,EBNshare) 14 15 15 15 15 15 18 15 17 19 18
-totalsales (billionm3,EBNshare) 29 30 27 28 28 28 30 26 27 28 26
average selling price of gas
(€-centsperm3,35,17MJ/m3) 20.72 26.91 20.67 21.52 16.46 16.46 13.17 13.88 12.55 13.93 11.33
sales from:
-continuingoperations 6,387 8,698 6,090 6,264 4,883 4,883 4,230 3,872 3,633 4,146 3,144
-discontinuingoperations 3,384 3,384
total sales 6,387 8,698 6,090 6,264 8,267 8,267 4,230 3,872 3,633 4,146 3,144
changefromcontinuingoperationsin%comparedtothepreviousyear -27 +43 -3 +28 +15 +15 +9 +7 -12 +32 +48
net profit from:
-continuingoperations 2,211 3,269 2,367 2,378 1,673 1,637 1,534 1,380 1,296 1,590 1,184
- discontinuing operations 2,154 2,154
total net profit 2,211 3,269 2,367 2,378 3,827 3,791 1,534 1,380 1,296 1,590 1,184
netprofitfromcontinuingoperationsin%ofsales 35 38 39 38 34 34 36 36 36 38 38
property, plant and equipment:
-capitalexpenditureonshore 238 129 277 146 121 121 143 138 125 80 62
-capitalexpenditureoffshore 475 447 405 478 446 446 207 316 325 225 246
-abandonment -163 93 137 273 149
totalcapitalexpenditure 550 669 819 896 716 567 350 454 450 305 308
depreciationandamortization 462 501 494 403 374 376 337 344 334 342 347
shareholders'equity 158 160 162 290 237 437 348 329 280 129 129
gearingratio(%) 93 91 93 86
outsidecapital 4,520 5,386 4,664 3,902 3,437 2,977 2,730 2,592 2,746 2,728 2,775
ContactsKey figures
Visiting address Visiting address
EBN Utrecht EBN Heerlen
Moreelsepark 48 Het Overloon 1
3511 EP Utrecht 6411 TE Heerlen
Postal address
P.O. Box 19063
3501 DB Utrecht
T +31 (0)30-2339001
F +31 (0)30-2339051
Copy
Tekst & Speech, Haren
Design and layout
Bovil DDB, Eindhoven
Photography
Roy Beusker, Den Haag
Drukkerij van Meurs, Ridderkerk
© 2010 EBN
No part of this publication may be copied and/or made public by means of printing.
photocopy, microfilm or in any other way whatsoever without EBN’s prior written consent.
2009 2008
Number of participations 181 171
of which pertaining to exploration 45 41
Sales volume, EBN share (billion m3)1 29 30
EBN's (in)direct share in reserves (billion m3 GE) 491 507
Sales (from continuing operations) 6,387 8,698
Net profit from continuing operations 2,211 3,269
State income via EBN 5,188 7,516
Capital expenditure 713 576
Depreciation and amortization 462 501
Number of employees 79 61
1 This includes the proportional part of sales from onshore production licenses in which
EBN has no equity share but is entitled to a proportional share of the revenues. Unless
stated otherwise, all quantities in this report are expressed in billion m3 of natural gas
(35,17 M at 0 degrees Centigrade) based on EBN’s participation percentage.
Annual R
eport 2009 - Unprecedented opportunities
Annual Report 2009Unprecedented opportunities