Confidence in Our Own Abilities

Company Profile

© November 2011Staatsolie Maatschappij Suriname N.V.Dr. Ir. H.S. Adhinstraat 21P.O.Box 4069, FloraParamaribo, SurinamePhone: (597) 499649Fax: (597) 491105Website: www.staatsolie.comE-mail: mailstaatsolie@staatsolie.com

Vision and Strategy

Staatsolie Vision 2020• Leading the sustainable development of Suriname’s energy industry.• Making a strong contribution to the advancement of our society.• Becoming a regional player with a global identity in the energy market.

Mission• To develop Suriname’s hydrocarbon potential over the full value chain,

to generate electricity, and to develop renewable sustainable energy resources.

• To secure the energy supply of Suriname and to establish a solid position in the regional market.

• To expand our reputation based on our growth performance, flexibility and corporate social responsibility.

Values• Excellence: We shall be strong, result oriented and strive for

continual improvement in everything we do. We shall meet or exceed the product quality that our clients expect.

• Employee focus: We consider our employees the most distinctive factor to our success.

• Integrity: We shall be honest and transparent in our dealings with employees, clients, suppliers, shareholders and the community in which we work.

• Growth: We shall focus on continuous growth and maximize share-holders’ value.

• Public spirit: As a responsible member of the community, we shall base our business principles on sustainable development and regard for the environment. Moreover, we shall make a strong contribution to the advancement of our society.

Company Facts

Official name: Staatsolie Maatschappij Suriname N.V.Established on: 13 December 1980Shareholder: The Republic of SurinameExecutive Directors: M.C.H. Waaldijk – Managing Director G.P. Sairras – Director Production & Development I. J. Poerschke – Director FinanceDeputy Directors: B.W. Dwarkasing – Deputy Director Exploration and Petroleum Contracts R.T. Elias – Deputy Director Business Development A. K. Jagesar – Deputy Director Business Development A.K. Moensi-Sokowikromo – Deputy Director Finance S. Murli – Deputy Director Refining & MarketingEmployees: 800 ( as of 1 November 2011)Commercial Activities: Exploration, drilling, production, refining, marketing,

sales, transport of crude and refined products, generation of electricity and steam

Institutional Activities: Assessment of hydrocarbon potential, promotion, contracting and monitoring activities of other oil companies on behalf of the State

Oil fields: Tambaredjo, Calcutta and Tambaredjo North-WestName of the crude: Saramacca Crude (low in sulfur and metal contents)Crude production: 16,000 barrels of oil per day Staatsolie Refinery: Processing capacity of 7,000 barrels crude per dayRefinery products: Diesel, fuel oil and bitumenMarkets: Suriname and the CaribbeanThermal power plant: Operational since 2006, capacity of 28 megawatt;

operated by Staatsolie Power Company Suriname (subsidiary of Staatsolie)

2010 2009

Consolidated gross turnover US$ 566 million (expected)

US$ 426 million (realized)

Consolidated Profit before tax US$ 285 million US$ 181 million

Dividend US$ 92.6 million US$ 58 million

ROE 38% 28%

Investments US$ 110 million US$ 135 million

Contribution to Government Budget US$ 194 million US$ 124 million

Net selling price refined products US$ 71,98/barrel US$ 57,66/barrelAnnual Crude production 5,8 million barrels 5,9 million barrels

Consolidated key performance indicators for Staatsolie in 2010

Company Profile Staatsolie Maatschappij Suriname N.V.Staatsolie Maatschappij Suriname N.V. is a state-owned company founded on 13 December 1980 by the Government of Suriname. Pursuant to its by-laws, Staatsolie has the responsibility for giving substance to two functions: a commercial function and an institutional function. In the commercial func-tion Staatsolie has been involved in exploration, drilling, production, treat-ment and refining of crude oil and marketing and transportation of refined products. In the institutional function Staatsolie acts on behalf of the State in attracting and negotiating petroleum contracts with international oil compa-nies and in monitoring their activities based on the contract. Staatsolie also advises on government policies regarding the petroleum industry. In the past 30 years, Staatsolie has developed from a grass-roots operation into an integrated oil company, contributing significantly to the Surinamese economy. With the deployment of the strategic long-term plan, Vision 2020, Staatsolie is transforming into an integrated and sustainable energy company.

Sustainable Energy FutureStaatsolie’s resolve to ensure a sustainable energy future for Suriname is one of the pillars of its strategic long-term plan ‘Vision 2020’. To realize Vision 2020 an Implementation Strategy 2009-2020 was formulated comprising of four plateaus. Each plateau is a stable intermediate phase on the road to Vision 2020, reflecting the realization of selected strategic goals.In the first period, which coincides with the Strategic Plan 2009 – 2012, Staatsolie lays the foundation for the second period in which Staatsolie’s transition into an energy company will take place. In the third period Staatsolie will substantially increase its crude production and will also be actively involved as a producer of biofuels, hydropower and thermal power. In the fourth and last period towards the year 2020, the separation of the institutional and the commercial role is envisioned.

Fundament for GrowthFor the first plateau, Fundament for Growth (2009-2012), the key strategic goals are:• To sustain crude production at 16,000 barrels oil per day.• To increase onshore reserves by at least 64 million barrels. • To increase the refinery throughput to 15,000 barrels per day and

diversify the product portfolio.• To develop new businesses.• To establish a robust organization.

In order to sustain onshore crude production at a minimum of 16,000 barrels of oil per day, Staatsolie’s exploration strategy is driven by its goal to find and add 64 million barrels of reserves by the end of 2012. For the current strategic planning period the focus for onshore exploration is to carry out exploration activities in the frontier coastal area.

With the Refinery Expansion Project Staatsolie aims to double refining capacity to 15,000 barrels a day and supply the local market with quality products, including diesel and gasoline. The construction of the refinery is awarded to the Italian company Saipem. Construction will start in the first

Staatsolie’s three onshore oil fields in the District of Saramacca produce a total of about 16,000 barrels of oil per day. Crude production in 2010 totaled 5.8 mil-lion barrels. Since 2006 Staatsolie has introduced wetland operations in two production fields. A minimum of dams and waterways are constructed, preserv-ing the ecosystem in environmentally sensitive areas as much as possible.

The Saramacca Crude is refined by Staatsolie’s refinery at Tout Lui Faut in the District of Wanica. With a processing capacity of 7,000 barrels per day, the refinery produces different grades of fuel oil, diesel and bitumen. Most of these products are sold locally, while the surplus is exported to countries in the Caribbean. Staatsolie is also a well-known supplier of bunkering services to national and international customers.

In 2006, Staatsolie’s 14 megawatt thermal power plant started operations. The electrical power is sold to the national power company for further distribu-tion into the grid. Since mid 2010, the power plant generates 28 megawatts.

The economic indexes and a steady growth are proof of Staatsolie’s sound financial performance. Net revenues in 2010 are forecasted at US$ 566 million, which is a 33% increase compared to the US$ 426 million net revenues of 2009. In the strategic planning period 2009-2012, an investment program of US$ 1 billion is being carried out. The investment program is financed with an internal cash flow of US$ 680 million and US$ 320 million is obtained through external financing.

Staatsolie’s business processes are carried out in accordance with ISO 9001:2008 quality management system standards. The company also implements prudent industry standards and practice to maintain a safe and healthy work environment. Projects are carried out in accordance with environmental guidelines, rules and regulations.

Corporate CitizenshipStaatsolie demonstrates its corporate citizenship by contributing to a wide range of community projects in education, culture, sports, health, road safety (awareness), environment and projects for the underprivileged. The Staatsolie Foundation for Community Development supports sustainable community development projects. Contribution to community development is an important pillar of Staatsolie’s Vision 2020.

Agent for the StateStaatsolie also acts as an agent for the State with respect to the petroleum industry. In this capacity the company is responsible for assessing the hydrocarbon potential of open blocks, offering them to the industry, negotiating petroleum contracts and supervising the execution of these agreements. Open blocks are made available through competitive bidding rounds or direct negotiations. International oil companies currently active in Suriname include Repsol YPF, Noble Energy, Petro Hunt, Inpex, Murphy Oil and Tullow Oil.

half of 2012. Completion is scheduled in 2014. This project will have a major impact on the company and on the economy of Suriname, mainly as a result of import substitution of motor fuels.

The Surinamese government designated Staatsolie as the coordinating agent for renewable energy projects in Suriname. While renewable energy sources hold great promise for the future, only feasible projects based on proven tech-nology, will be considered.

In 2008, several options for producing biofuel in Suriname were evaluated and Staatsolie decided to explore the possibilities for the production of biofuel from sugarcane. To support a feasibility study, a pilot project started in December 2010. In the pilot different varieties of sugarcane are tested, while several studies – environmental and social impacts, industrial and agricultural – will be carried out. The pilot program will run through 2012.

Staatsolie has set out to expand its electricity generation activities by further developing Suriname’s hydropower potential. A comparative study on hydro-power project options in Suriname identified the TapaJai hydropower project as most attractive. Compared to thermal generation, which has been the de-fault option in Suriname during the last decades, the TapaJai project will yield a competitive power price. The TapaJai project can be executed in phases, which provides the opportunity to add new hydropower as Suriname’s elec-tricity demand increases.The first phase of the TapaJai project consists of building dams in two rivers and diverting part of the water to the existing Van Blommenstein Lake (also known as Brokopondo Lake), thus increasing the utilization of the existing Afobaka hydropower plant that draws water from the Van Blommenstein Lake. A thorough environmental and social impacts study for this project will be carried out and is planned to start in mid 2011. The TapaJai project, which will be developed with adherence to contemporary environmental and social standards, is scheduled to deliver its first kilowatt-hour in early 2015.

Human resources development is a vital aspect of Staatsolie’s business, be-cause Staatsolie believes that people are the key to its success. One of the associated corporate goals for the ‘Fundament for Growth’ phase is to secure a robust organization to realize the strategic plans in the subsequent periods. In this respect more stringent requirements will be imposed upon the organi-zation and the operations. To support the establishment of a robust organiza-tion, a Human Resources Strategy and Development Plan in alignment with Vision 2020 and the Corporate Strategic Plan is being implemented. Performance 2010