Introduction to DONG Exploration

& Production

Morten Eskerod

Asset Technical Manager, Solsort Asset

Ajour, November 2015

People's living standard depends on energy

DONG E&P Presentation, Ajour 2015 2

Expected increase in oil and gas demand

Source: UN Population Division; BP, Statistical Review 2013; Lambert Energy

1.1 1.3 1.3

3.4

6.1

8.2

0

1

2

3

4

5

6

7

8

9

10

1980 2015E 2050E

Glo

bal

po

pu

lati

on

(b

illio

n p

eo

ple

)

Other

OECD

Global population trends Global energy demand

~1.3 billion

still have no

access to

electricity

6382

97

36

60

93

44

75

95

0

50

100

150

200

250

300

350

400

1990 2012 2035E

Glo

bal

pri

mar

y e

ne

rgy

de

man

d (

mm

bo

e/d

)

Biofuels

Renewables

Hydro

Nuclear

Coal

Gas

Oil

DONG E&P Presentation, Ajour 2015 3

The global oil industry will need to meet rising oil demand…

Source: International Energy Agency; BP, Statistical Review; US Department of Energy; Wood Mackenzie; Lambert Energy

3451

6576

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Biofuels supply (sustainable)

NGL supply (2.0% decline)

Crude supply (6.0% decline)

Implied minimum new liquids supply required to meet demand

Global liquids demand (forecast, @ 0.7%p.a.)

Global liquids demand (assuming no growth)

Glo

bal

oil

sup

ply

& d

em

and

fo

reca

sts

(mm

bb

ls/d

)Global liquids demand versus supply from existing fields

…and replace the natural decline of the oil production from existing fields

DONG E&P Presentation, Ajour 2015 4

Marginal fields … the future of the Danish Shelf?

0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 5.500 6.000

400

300

200

100

0

900

800

RoarValdemar

Syd Arne

Halfdan

Siri

HaraldHejre**

Gorm

Dan

Tyra

Skjold

Marginal

Tieback

Stand-alone

Field size

mmBOE

Reservoir depth*

Meter

19%

Source: Danish Energy Agency; Members of Oil Gas Denmark, Quartz&Co report II5

7

DONG E&P plays a key role in the DONG Energy Group

INTRODUCTION TO NEW EMPLOYEES - SEPTEMBER 2015 – DAVID COOK

52%37%

3%8%

Group EBITDA 2014

E&P

WP

Thermal

C&M

DONG E&P – Activities overview

DONG E&P office

Gas treatment plant

Current geographic focus area for oil and natural gas exploration and

production

Oil and/or gas discovery

Oil/natural gas field under development

Producing oil/gas field

DONG E&P is a licence partner

Producing oil/gas field

DONG E&P is the licence operator

London

Nyhamna

Copenhagen

Stavanger

Rosebank

Cambo

Tornado

Esbjerg

Mjølner

Solsort

Hejre

Laggan-Tormore

Glenlivet

Edradour

Alve

Siri area

Trym

Marulk

Ormen Lange

Oselvar

Syd Arne

Ula

Tambar

Gyda

Lulita

Aberdeen

Xana

A

560956085607

B

5606

D

55095508

C

0002

5507

5605

5505 5506

B

0003

A

5604

5504

E

039

570800100008 0009 57095707

0004

0011

5610

5603

5510038

5503

031

5706

5710

030

0005

0012

0001

F

0007

Projection: Mercator (world) [not to scale]

Fields

Gas

Gas Condensate

Gas & Oil

Oil

Oil & Gas

DONG E&P licences

Operator

DONG E&P

Hess

Mærsk

4° 6°

56°

Nini Øst

Nini VestNini

Sofie

Stine Segment-2

Stine Segment-1Siri

Siri Nord

Connie

Francisca

Cecilie

Rau

Lulita

Harald

Amalie

Svane

Hejre

Svend

Syd Arne

Gert

Ravn

Elly

ValdemarAdda

Roar

Rolf

Dagmar

Gorm

HalfdanLola

Tyra

Tyra Sydøst

Halfdan/NESkjold

Dan Alma

Kraka

Regnar

4/95

6/95

16/98

1/907/869/95

4/981/06

5/98

7/892/06

NorwegianShelf

DanishShelf

BritishShelf

DutchShelf

GermanShelf

8°

3/09

Solsort

Nora

Siri NiniCecilie

Syd Arne

Nini East

Lulita

Stine

Solsort

Hejre

DONG E&P Denmark at a glance

10

The Value Chain of the E&P Business – DONG E&P covers it all

DONG E&P PRESENTATION, AJOUR 2015

Exploration Development Production Abandonment

11

The Value Chain of the E&P Business – Links to DONG E&P DK

DONG E&P PRESENTATION, AJOUR 2015

Exploration Development Production Abandonment

Hejre Asset Siri Asset Syd Arne/Lulita Asset

Solsort Asset

E.g. Xana

12

The Value Chain of the E&P Business – Maskinmester involvement

DONG E&P PRESENTATION, AJOUR 2015

Exploration Development Production Abandonment

Exploration AbandonmentDevelopment

13

Siri Asset

DONG E&P PRESENTATION, AJOUR 2015

Syd Arne/Lulita AssetE.g. Xana Hejre Asset

Solsort Asset

Siri Asset

Production

14

The Siri Area

DONG E&P INTRO. SEMINAR, DK ASSETS

Licenses 06/95, 04/95 and 16/98

• (See chart)

The Siri Area fields (sandstone)

• Overall area: 500 km2

• Pressures: 150 - 250 bar

• Temperatures: 55 - 100 °C

• Reservoir depths: 1,500 - 2,500 m

• Water depths: 60-65 m

15

Siri Area – Realising Marginal Near-Field Potential Via the Hub

DONG E&P PRESENTATION, AJOUR 2015

Production and value of the Siri barrels

0

1000

2000

3000

4000

5000

6000

7000

8000

Oil

Ra

te (

Sm3

/da

y)

Siri Area monthly avg. oil production rate

NB-3 + NB-5

Nini East

NiniTy

Nini H+W

Cecilie

SCA-3C

Stine 1

Stine 2

SiriC

0

1000

2000

3000

4000

5000

6000

7000

8000

Oil

Ra

te (

Sm3

/da

y)

Siri Area monthly avg. oil production rate

NB-3 + NB-5

Nini East

NiniTy

Nini H+W

Cecilie

SCA-3C

Stine 1

Stine 2

SiriC

100% share

16

The Siri Caisson Repair – A Major Facility Challenge Overcome

DONG E&P PRESENTATION, AJOUR 2015

Exploration AbandonmentDevelopment

17

Syd Arne Asset

DONG E&P PRESENTATION, AJOUR 2015

Syd Arne/Lulita AssetE.g. Xana Hejre Asset

Solsort Asset

Siri Asset

Production

Syd Arne/Lulita Asset

18

The Syd Arne Field

DONG E&P INTRO. SEMINAR, DK ASSETS

License 07/89

• Hess Denmark A/S 61.5 %

• DONG E&P A/S 36.8 %

• Danoil 1.7 %

The Syd Arne field (chalk)

• Overall area: 12 km x 3 km

• Pressure: 435 bar

• Temperature: 115 °C

• Reservoir depths: 2,800–3,200 m

• Water depths: 60 m

19

Syd Arne Field – Increasing Recovery by Adding Drill Centers

DONG E&P PRESENTATION, AJOUR 2015

Wellhead Platform East

10 slots, bridge linked to

existing facility

3 Phase 3 wells planned

Syd Arne

20 Wells, processing, WI,

export and accommodation

Wellhead Platform North

Unmanned 16 slot platform

9 phase 3 wells planned

Subsea ‘bundle’ (2.3 km)

Pipelines, hydraulics, chemicals,

power & controls

Exploration Production Abandonment

20

Hejre Asset

DONG E&P PRESENTATION, AJOUR 2015

Siri Asset Syd Arne/Lulita Asset

Solsort Asset

E.g. Xana

Development

Hejre Asset

21

Hejre Project – Development Overview

DONG E&P PRESENTATION, AJOUR 2015

License 5/98

• DONG E&P A/S (Operator): 60 %

• Bayerngas Danmark Aps: 15 %

• Bayerngas Petroleum Danmark AS: 25 %

The Hejre HPHT field (sandstone)

• Main area: 30 km2

• Pressure: 1,000 bar

• Temperature: 165 °C

• Reservoir depth: 5,000-6,000 mTVD

• Water depth: 68 m

Hejre – Development project overview

Gorm E

Platform / Field

Pipeline

Exploration Production Abandonment

23

Solsort Asset

DONG E&P PRESENTATION, AJOUR 2015

Siri Asset Syd Arne/Lulita AssetE.g. Xana Hejre Asset

Development

Solsort Asset

24

Solsort Project – Development Overview

DONG E&P PRESENTATION, AJOUR 2015

License 3/09

• DONG E&P A/S (Operator) 35%

• Bayerngas Danmark ApS 30%

• Nordsøfonden 20%

• VNG Danmark ApS 15%

The Solsort field (sandstone)

• Pressure: 400 bar

• Temperature: 100 °C

• Reservoir depth: 3,000 m

• Water depth: 62 m

Hejre

Solsort

25

Questions?

DONG E&P PRESENTATION, AJOUR 2015