total E&P norgE aSannual rEPort

275 000TOTAL E&P is invOLvEd in ExPLOrATiOn And PrOducTiOn Of OiL And gAs On ThE nOrwEgiAn cOnTinEnTAL shELf, And PrOducEd On AvErAgE

bArrELs Of OiL EquivALEnTs EvEry dAy in 2012.

KEy figurEsAbOuT TOTAL E&P nOrgE rEsOurcE mAnAgEmEnTbOArd Of dirEcTOrs’ rEPOrT

incOmE sTATEmEnTbALAncE shEETcAsh fLOw sTATEmEnTAccOunTing POLiciEsnOTEsAudiTiOr’s rEPOrT

OrgAnisATiOn chArTOur inTErEsTs On ThE ncs

cOnTEnTs

275 000

ifc

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31ibc

A key objective is to mature and drill exploration prospects in our acreage

RESOURCE MANAGEMENT

TOTAl E&P NORGE ASANNUAl REPORT

key figures

* Net income plus financial expense after tax as a percentage of capital employed at 1 January. Capital employed consists of total equity and liabilities less non-interest carrying debt.

MillioN Nok 2012 2011 2010

iNCOMe sTATeMeNT

Total revenues 51 109 51 326 47 777

operating profit 33 196 36 185 29 774

Financial income/(expenses) – net (358) (213) (236)

Net income before taxes 32 838 35 971 29 539

Taxes on income 23 417 26 262 20 184

Net income 9 421 9 709 9 354

Cash flow from operations 17 093 19 276 13 711

BALANCe sHeeT

intangible assets 2 813 794 1 200

investments, property, plant and equipment 57 126 49 438 48 821

Current assets 10 027 12 191 6 829

Total equity 7 119 6 698 6 589

long-term provisions 27 299 26 180 23 670

long-term liabilities 10 473 126 1 129

Current liabilities 25 074 29 418 25 463

OTHer key figures

Acquisition of property, plant and equipment 16 202 10 410 8 308

Exploration activity, costs and investments 1 433 1 682 671

Rate of return on capital employed* 58.3% 61.0% 69.4%

Production cost USD/BBL 9.0 7.5 6.8

Transport cost USD/BBL 4.4 4.6 4.1

PrODuCTiON thoUSanD Boe

Net average daily production 275 287 310

reserVes Of OiL AND gAs miLLion Boe

Proved developed and undeveloped reserves at 31.12 1 083 1 057 1 065

eMPLOyees

Average number of employees 322 289 277

51 10933 196

1 083275

322

total revenues million nok

operating profit million nok

reserves of oil and gas (proved developed and undeveloped reserves at 31.12) million boe

production (net average daily production) thousand boe

employees (average number during 2012)

5

WE CONTiNUE TO EvAlUATE all new Exploration Rounds, under both the APA system and the Conventional Rounds. At the end of 2012 we submitted applications under the 22nd Licensing Round with awards expected in June 2013.

WE hAvE PARTiCiPATiONS in 29 producing fields and hold the largest reserve base in Norway among the international oil companies. Total E&P Norge’s 2012 production (275 kboe/d) constitutes approximately 12% of the TOTAL Group’s worldwide production. Our capital investment levels in Norway reached a record level of 16 BNOK in 2012, and are expected to remain at similar high levels in the years ahead.

A kEy ObjECTivE is to mature and drill explora-tion prospects in our acreage base. Following the two successful exploration wells drilled in 2011, Norvarg and Alve North, Total E&P Norge as operator, last year made the Garantiana (PL 554) oil discovery, some 30 km to the northeast of Visund. We were also a partner in the King Lear discovery in the Southern part of the North Sea. In 2013 the focus will return again to the Barents Sea, with the Norvarg 2 appraisal well to be spudded in April 2013. To drill this well and to secure future capacity in the rig market, Total E&P Norge established a consortium to bring the Leiv Eiriksson semi-submersible rig back to Norwegian waters

iN TERMS Of OPERATEd dEvElOPMENTS, 2012 will be seen as a turning point for TOTAL in Norway.

fiRST Of All we successfully brought on stream the fast track Atla project, a small satellite field connected to Heimdal via our operated Skirne field, only 2 years after discovery.

SECONdly A MAjOR MilESTONE was achieved with the June approval in the Storting of the Plan for Development and Operation (PDO) for the Martin Linge field. Martin Linge is a technically challenging development of a deeper gas/condensate field, overlain by a shallower oil reservoir. Production start-up is set for late 2016, with a steel jacket based Production, Utilities and Quarters platform together with a tanker for storage and offloading of the oil. Gas is sent via a new pipeline to the existing FUKA pipeline to St Fergus in Scotland. The platform power requirements will be supplied

through a 170 km long AC electric cable running from the shore at Kollsnes.

ThE PROjECT ORGANiSATiON is now well established, and the major contracts are awarded. Development drilling over the pre-installed jacket is planned to start in 2014. The Martin Linge project once again estab-lishes the Company as a significant operator in Norway, and Total E&P Norge is actively recruiting in the Norwegian market

iN ThE NON OPERATEd portfolio, the Company’s single most valuable asset is the Greater Ekofisk Area, with ConocoPhillips as operator. The Ekofisk Quarters, Ekofisk South and Eldfisk II projects were all sanctioned in 2011. These projects, for the construction of a new living quarter and a large new wellhead platform on Ekofisk, and the redevelopment of Eldfisk, are progressing well.

WE AlSO PARTiCiPATE in several new devel-opment projects operated by Statoil, including the Åsgard subsea compression project pioneering this technology, the Gina Krog field development and a number of the Statoil ‘fast track’ projects involving tieback of satellite discoveries to existing host facili-ties. As license partner, the Company always seeks to play an active and constructive role.

TOTAl UNdERTAkES a substantial Research and Development (R&D) effort in Norway, with basis in a dedicated research centre in Stavanger. In 2012, the total R&D-budget was at a record level of 285 MNOK, which is second only to Statoil in Norway. It is TOTAL’s policy to make new technology available and share it when needed in the licences.

ThE NORWEGiAN oil and gas industry recently celebrated the 40th anniversary of first produc-tion from the Ekofisk field. There is every reason to believe that the industry’s future will continue for at least another 40 years into the future. It is TOTAL’s clear ambition to actively partici-pate with all our human, technical and financial resources in the search for new possibilities that will extend this even further.

Martin TiffenManaging Director Total E&P Norge AS

RESOURCE MANAGEMENT must of course be done safely and sustainably whilst minimising the environmental footprint of our activities. A necessary condition to achieve this goes through the recruitment, training and develop-ment of our human resources and systems, such that the organization has the competence required to conduct its activities in a safe and efficient manner.

i AM ThEREfORE very satisfied that not only did Total E&P Norge achieve its objectives for our operated and non operated activities in 2012, but also that this was done with full regard to the health and safety of all our staff and contractors as well as the environment.

TOTAl E&P NORGE has an extensive position on the Norwegian Continental Shelf (NCS), participa-ting in 99 Production Licences, including 27 as ope-rator. Our portfolio is in constant evo lution, these numbers include 8 awards under the APA 2012 concession round (4 as Operator, 4 as Partner). We also executed a swap agreement with ExxonMobil, exchanging our interests in several fields in the Tampen Area for ExxonMobil’s interests in Oseberg and Gina Krog (Dagny).

A fUNdAMENTAl dRivER fOR ThE Oil ANd GAS bUSiNESS REvOlvES AROUNd RESOURCE MANAGEMENT:

TO TAkE ACREAGE ANd diSCOvER hydROCARbON RESOURCES

TO dEvElOP SUCh RESOURCES iN A TiMEly ANd COST EffECTivE MANNER

TO MAxiMiSE Oil ANd GAS RECOvERy

RESOURCE MANAGEMENT

7

for gas and similar prices for oil compared to 2011 leads to a satisfactory year in terms of financial results. The considerable work and effort by our staff within the existing perimeter of activity, together with awards in the licensing rounds, confirm the Company’s dedication to and strength on the Norwegian Continental Shelf.

ACTiviTiES ON ThE NORWEGiAN CONTiNENTAl ShElf2

ExxONMObil SWAP

In a process of rationalising their respective licence portfolios, Total E&P Norge and ExxonMobil Exploration and Production Norway AS (ExxonMobil) entered into an Exchange Agreement on 4 October 2012. The agreement involved the entire Total E&P Norge interests in the Tampen area; PL089 (5.6%), Snorre Unit (6.18%), Vigdis and Tordis (5.6%), Sygna (2.52%) and Stat-fjord Øst (2.8%). From ExxonMobil, Total E&P Norge received their entire interest in the Oseberg field (4.7%) and Oseberg Transportation system (4.33%), together with their entire interest in PL029C (100%) and PL29B (30%) containing the undevel-oped Dagny discovery. The agreement was balanced out with a minor cash element from Total E&P Norge to ExxonMobil. The Agreement was approved by the Norwe-gian authorities in November and the trans-action was completed on 3 December 2012. It had no material impact on 2012 production

liCENSiNG ROUNdS

On 3 February 2012, Total E&P Norge was officially awarded shares in eight new licences, all located in the North Sea, in the Awards in Predefined Areas (APA) 2011. This award was in line with the Company’s application, and resulted in five operatorships; PL618 (60%), PL619 (50%), PL102E (40%), PL102D (40%) and PL 627 (40%). Finally, the Company was awarded interest in three licences operated by Statoil; PL193E (5%), PL046D (10%) and PL104B (10%).

On 6 September, Total E&P Norge submitted an application for new licences in APA 2012. On 15 January 2013, and again in line with the Company’s application, Total E&P Norge was offered shares in eight new licences, all in the North Sea. Four were offered as operatorships. Three are in the Greater Ekofisk area, PL661 (60%), PL662 (60%) and PL667 (50%) respectively, and one in the Tampen Spur Area, PL685 (40%). Three licences will be operated by Statoil: PL675 (40%) located west of Grane and Ringhorne, and two extensions of existing licences, PL190B (10%) and PL684 (5%) in the Kvitebjørn licence. The last licence, PL676S (20%) in the same area as PL675, will be operated by Faroe Petroleum. On 4 December, the Company submitted an application for new licences in the 22nd Licensing Round. The awards are expected to take place before summer 2013.

PORTfOliO

The overall effect after the ExxonMobil swap and the 2011 and 2012 APA rounds is:Participation in 99 Licences, 27 as OperatorParticipation in 29 Producing fields

MARkETiNG ANd TRANSPORTATiON

On 21 December 2012, Total E&P Norge endorsed the Final Investment decision in the new 480-km Polarled gas transportation system from the Statoil-operated Aasta Hansteen development in the Norwegian Sea to Nyhamna. The pipeline will also facil-itate Linnorm, where the Company holds a 20% interest, as well as several other fields in the Norwegian Sea. The Plan for Installa-tion and Operation was submitted to the authorities on 8 January 2013. Planned start-up is in 2016 with Statoil as operator for the construction phase. Total E&P Norge holds a 5.11% interest in the project. On 1 November 2012, Total E&P Norge entered into an 18-year time charter agreement with the owner of the LNG vessel Meridian Spirit. This agreement will enable the Company to both fulfil its lifting commitments from Snøhvit and its sale and purchase agree-ment commitments towards its buyer, TOTAL Gas & Power

iNTROdUCTiON1TOTAL E&P NORGE AS (Total E&P Norge), a wholly-owned subsidiary of the France-based TOTAL Group, is engaged in explora-tion for and production of hydrocarbons on the Norwegian Continental Shelf. The Board of Directors’ report and the accounts have been prepared based on the Company’s continuity as a going concern, and in the opinion of the Board of Directors this is justified. 2012 has been an active and successful year for Total E&P Norge. We have continued to build on our solid platform of long-term presence and knowledge of the Norwegian Continental Shelf. As an operator, we:

Submitted the Plan for Development and Operation (PDO) for Martin Linge to the Norwegian authorities in January 2012 and received approval from the Storting on 11 June,

Started production on the Atla field in October, on schedule and budget, just two years after discovery,

Drilled a successful exploration well on the Garantiana prospect in the North Sea,

Submitted applications in the Awards in Predefined Areas 2012, which resulted in an offer of four new operated licences and four as partner, all in the North Sea.

As a partner, the main events included Partnership approval of the Dagny project PDO in December and subsequent sub mittal to the authorities the same month.

Drilling of the King Lear prospect in the North Sea, resulting in an important discovery

Installation of jackets and bridges on the Ekofisk complex in preparation for the new Living Quarters and Ekofisk Zulu drilling platform topsides to be installed in summer 2013

Concerning health, safety and environment (HSE), Total E&P Norge met its main objec-tive, avoiding any fatal or serious accidents in 2012, in an environment characterised by high activity and rigorous demands. Production in 2012 was at an annual average of 275 thousand barrels of oil equivalents per day, a decline of 4.2% compared to the previous year. Slightly higher realised prices

ThE bOARd Of diRECTORS’ REPORT

8

with 95 beds. Final oil-water separation will take place on a Floating Storage and Offloading vessel, before the oil is offloaded to shuttle tankers. The FSO is moored on the field and connected to the platform through infield flowlines, an umbilical, a fuel gas line and a power supply cable. The gas from Martin Linge will be exported via a new 24” pipeline that will be connected to the Frigg UK Pipeline (FUKA) and Frigg UK Terminal at St. Fergus in Scotland. Power will be supplied through a 160-km long subsea AC cable from Kollsnes to Martin Linge. Production start from the field is planned in 4Q 2016. The Martin Linge Basic Engineering commenced in August 2011 with Aker Solutions and was completed in December 2012. This provides the basis for the exe cution phase and EPC tenders. Several major contracts were awarded during 2012. A contract for a new-build jack-up rig was formally signed with Maersk Drilling in July, the SURF contract was signed with Subsea 7, and the topsides with Technip/Samsung, transport and installation with Heerema. The logistics contracts for the drilling and operational phase (helicopter transport, supply and standby vessels and base services) were also awarded.

OPERATEd by OThERS – STATOil bARENTS SEA The Snøhvit LNG facilities continued to suffer unplanned outages. In order to improve regularity of the existing LNG train, a Snøhvit improvement project was launched to enhance plant performance and availability. The aim of a first phase is to have improvements ready for implementation during the planned 2014 shutdown.

OPERATEd by OThERS – STATOil ANd ShEll NORWEGiAN SEA On Åsgard, the subsea compression project continued as planned during 2012. The Shell-operated Linnorm development in PL255 was stopped in September 2012 due to major cost increases during the FEED phase. The final investment decision, initially slated for end 2012, has been postponed to end 2014, depending on a positive outcome of the Onyx South exploration well which will be spudded in spring 2013.

OPERATEd by OThERS – STATOil, MARAThON ANd CENTRiCA NORTh SEA The Visund field continued to experience several months of reduced production in 2012 due to riser replacements. Several more risers will have to be replaced in the coming years. Visund South, a subsea tie-back to Gull-faks C and the first of Statoil’s fast-track projects, started production in November 2012. The Visund North fast-track project is ongoing and first oil is expected in late 2013. In the Heimdal area, the Heimdal gas wells were closed in at the end of 2011 due to integrity concerns. The condensate export pipeline to Brae was shut down in July 2012 due waxing. The condensate is currently rerouted to the Sture terminal via the Grane field. Vale recommenced production via this export route. Centrica took over the operator-ship of Vale on 30 April 2012, following a deal with Statoil. Vilje has been producing better than planned. Marathon took over the operatorship on 1 October 2012 and is now conducting the Vilje Sør development in co-operation with Statoil. Vilje Sør consists of an infill well on the Vilje field tied in to existing infrastructure on the seabed. It is expected to be on stream in late 2013. The new well on the Glitne field was not successful. This result, combined with issues with the subsea facilities, led to a decision to permanently close in the field. The last production is expected in February 2013. Following unitisation, the Dagny field PDO was approved in the partnership in December 2012 and submitted to the authorities. The Dagny development consists of a manned jacket-based platform where oil is processed on the platform and offloaded from a floating

ExPlORATiON

dRilliNG

OPERATEd In 2012, Total E&P Norge joined and worked in a rig consortium administered by Rig Management Norway. The Company acted as lead Operator in the tender process and contract negotiations. The Leiv Eiriksson rig has been secured for a 3-year contract starting around 1 April 2013, providing Total E&P Norge with rig capacity to drill two exploration wells per year. In December 2012, the exploration well on the Garantiana prospect (PL554) was successfully completed with the Borgland Dolphin rig. The prospect is located 30 km northeast of the producing Visund field. Oil was encountered in the Lower Jurassic and a successful production test was performed. A sidetrack was also carried out to establish the oil/water contact. Preliminary estimates are between 4 and 12 million Sm3 of recov-erable oil.

OPERATEd by OThERS Total E&P Norge participated in the drilling of two exploration wells operated by others on the Norwegian Continental Shelf (NCS) during 2012. Both were operated by Statoil. The drilling of the King Lear prospect in PL146/333 encountered the main Upper Jurassic objective gas bearing. A sidetrack was drilled to prove the gas/water contact. The size of the discovery is estimated to be between 11 and 32 million Sm3 of oil equivalents. The Crux Prospect in PL053 encountered the main Triassic objective water-bearing. However, a thin oil column was proven in the Statfjord Formation.

hiGhliGhTS - dEvElOPMENT PROjECTS, EvAlUATiONS ANd OPERATiONS

OPERATEd MARTiN liNGE (fORMERly hild) The Martin Linge PDO/PIO was submitted to the Ministry of Petroleum and Energy on 19 January 2012, followed by the concession application for electric power supply from shore, submitted to the Norwegian Water Resources and Energy Directorate in March. The PDO/PIO was approved by the Norwegian Storting on 11 June 2012. The Martin Linge development concept consists of an eight-legged jacket with platform topside facilities for hydrocarbon processing, gas export and living quarters

ThE MARTiN liNGE PdO/PiO WAS SUbMiTTEd TO ThE MiNiSTRy Of PETROlEUM ANd ENERGy ON

19 jANUARy 2012 ANd APPROvEd by ThE NORWEGiAN STORTiNG

ON 11 jUNE 2012

ATlA The Atla fast-track project was successfully brought on stream on 7 October 2012, less than 2 years after the discovery in October 2010. The field development consists of a single production well (re-entry of the exploration well), a 7-km pipeline and umbilical tied back to the existing Byggve template. Some modifications on the tie-in host Heimdal have been carried out by the host operator, Statoil. Production has been according to plan from start-up and throughout the remaining months of 2012, with a flow between 3 and 4 Msm3/d.

SkiRNE The Skirne field produced steadily until September 2012, when which the field was shut in to allow tie-back and production start-up of the Atla field. The plan is to restart production from the Skirne field as soon as the reservoir pressure from Atla is sufficiently low to allow commingled production. This is expected to take place in 1H 2013.

9

at Eldfisk and Embla will be converted, modified and/or upgraded. A new jack-up drilling rig to perform the main drilling campaign has been contracted and is currently under construction at the Jurong yard in Singapore. The project is within budget and on schedule, with first oil production planned for January 2015. With the aim of increasing production and recovery rate, studies continue with the objec-tive of redeveloping the Tor field to enable production beyond 2015. Studies addressing revitalisation of earlier produced fields, exploitation of existing discoveries and prospects have been completed and reported in 2012, with the objective of identifying potential new devel-opments with a new gas hub for the area. The cessation work in the Ekofisk area has progressed on schedule and under budget during 2012, and work will continue in 2013.

fiNANCiAl hiGhliGhTS33.1 COMMENTS ON ThE

iNCOME STATEMENT

PROdUCTiON vOlUMESIn 2012, the average daily quantities produced were 275 thousand barrels of oil equivalents (kboe) per day, 4.2% below the 2011 level when a yearly average production of 287 kboe per day was achieved. 42% of the yearly production came from gas production, equivalent to an average of 17.6 million standard cubic meters per day. Compared to 2011, the overall 2012 production level was impacted by the natural decline of the Ekofisk and Sleipner areas, partially compensated by higher Troll gas liftings. Some changes have also affected the Heimdal area (Skrine-Byggve declining and Atla start up in 4th quarter 2012). In 2012 the 39.9% interest in PL018 Ekofisk area remained the largest contributor in production terms, the equivalent of 32.7% of the company’s overall production.

REvENUESIn 2012, yearly revenues were Norwegian Kroner (NOK) 51 109 million compared with NOK 51 326 million for 2011. Crude oil and gas sales were NOK 49 614 million in 2012 compared to NOK 49 129 million NOK in 2011, with good realisation prices offsetting the impact of lower volume. The average price achieved for oil and condensates was US dollar (USD) 112.6 per

barrel, constant compared to the USD 112.89 per barrel average price achieved in 2011. Revenues from oil and other liquids were NOK 36 323 million compared to NOK 37 263 million in 2011. Booked gas revenues reached NOK 13 291 million in 2012, up from NOK 11 866 million, in 2011.

storage unit and the gas is transported to Sleipner A. Production start is expected in 1Q 2017. A decision to develop the nearby Eirin field has been postponed to 2013. On Oseberg, the operator continues to plan for a Delta Phase 2 development and a major long-term drilling rig commitment for the Oseberg Area. Both projects are scheduled for final investment decisions in spring 2013.

OPERATEd by OThERS – CONOCOPhilliPS GREATER EkOfiSk AREAThe execution of the permanent new Ekofisk Accommodation and Field Centre Project continued throughout 2012. Fabrication of the two jackets and two bridges has been completed and the facilities were installed offshore at the Ekofisk Complex in July 2012. Fabrication of the topside is ongoing in Singapore (SMOE), with planned installation offshore at the Ekofisk Complex in July 2013. The cost forecast is within budget. The Ekofisk South Project objective (PDO approved by the Norwegian Storting in 2011) is to increase production and recovery by expanding infill production drilling and implementing water injection support in the southern area of the field. Fabrication of the jacket and the bridge is completed and the facilities were installed offshore at Ekofisk Complex in early September 2012. Fabrication of the topside is ongoing at Aker Egersund and installation offshore at Ekofisk Complex is planned in July 2013. Pre-drilling of producers started in October 2012. The pipeline and umbilical for the new subsea water injection facility (2/4VB) were installed during October 2012. Drilling of water injectors on 2/4VB started in July 2012. The project is progressing according to budget and on schedule, with first oil production planned for early 2014.

iN dECEMbER 2012, ThE ExPlORATiON WEll ON ThE GARANTiANA PROSPECT (Pl554) WAS SUCCESSfUlly COMPlETEd

WiTh ThE bORGlANd dOlPhiN RiG

iN 2012 ThE 39.9% iNTEREST iN Pl018 EkOfiSk AREA REMAiNEd

ThE lARGEST CONTRibUTOR iN PROdUCTiON TERMS, ThE EqUivAlENT

Of 32.7% Of ThE COMPANy’S OvERAll PROdUCTiON.

The Eldfisk II Project objective (PDO approved by the Norwegian Storting in 2011) is to redevelop the Eldfisk and Embla fields to enable exploitation beyond 2015. A new wellhead, process and accommodation platform at the Eldfisk Complex is being built by Kværner Stord, and the topside bridges and jackets by Dragados Offshore in Cadiz. The new platform will be tied into the Eldfisk Complex. The existing platforms

The yearly average price of gas delivered by the Company in 2012 (including LNG) increased from 9.68 to 10.11 $/mmbtu compared to 2011. For gas delivered under long-term sales agreements, prices were globally constant. Price for spot gas sales showed a slight improvement compared to 2011. LNG sales prices increased as a result of commercial optimisation of the sold LNG cargoes from the Snøhvit LNG plant. The Company’s income was positively impacted in 2012 by the evolution of the NOK/USD. The Company’s accounts are denominated in NOK whilst all liquids sales are invoiced in USD and gas sales predomi-nantly are invoiced in Euros (EUR), pounds sterling or USD. The average exchange rate for NOK/USD was 5.82 up 3.9% compared to 5.6 in 2011. The average NOK/EUR exchange rate was 7.5 down 3.8 % compared with 7.8 in 2011. Tariff income of NOK 529 million includes transportation tariffs and processing fees. They are 75% below the NOK 2 076 million realised in 2011 following the disposal of Gassled in 2011. The evolution of the items ‘sundry income’ and ‘other operating cost’ is principally linked to the assets transactions performed in the last two years. The ExxonMobil swap trans-action has been booked as a sale and an acquisition at completion date (beginning of December 2012). The sale part of the trans-action has contributed to a one-off positive net result of about NOK 1 billion, recorded in part as ‘sundry income’ and in part as current and deferred tax. During the year 2011, Total E&P Norge had sold its partici-pating interest in Gassled assets to Silex Gas Norway AS. This sale had contributed to a one-off positive net result of about NOK 2 billion, recorded in part as ‘other opera-tional costs’ and in part as current and deferred tax.

10

position, the net cash provided by operating activities has been stable between 2011 and 2012 at about NOK 17 billion per year.

iNvESTMENTSInvestments totalled NOK 16 202 million (inclu ding exploration, appraisal and acqui-sitions), which represents a 55% increase compared with the NOK 10 410 million in 2011. This is due to growing development expenditures, a larger exploration effort and acquisitions of new interests. The largest development investments were linked to facilities and drilling for the Ekofisk Area (in particular the new projects related to Ekofisk South and Eldfisk II), the completion of the development project of Atla and the engineering phase of the Martin Linge development project. In addi-tion Total E&P Norge increased its explora-tion effort both in drilling and seismic acquisitions.

in Oseberg and the transfer of assets related to the new fields coming in production in 2012 (Atla, Visund South). The licence acquisitions have been increased with the acquisition of Oseberg and Dagny mining rights. Transport and other equipments have increased due the recognition as financial lease of a LNG carrier chartering agreement entered as from 1st November 2012.

CURRENT ASSETSTotal current assets have decreased to NOK 10 027 million compared to NOK 12 191 million in 2011. This decrease is due to the cash settlement of the 2011 year-end receivable position related to the Gassled sale transaction. The underlift position has increased from NOK 3 643 million to NOK 3 964 million.

EqUiTy ANd liAbiliTiES Total equity has increased by NOK 421 million to NOK 7 119 million after allocation of the proposed dividend. The total equity represents 10.2% of the total balance sheet at the end of 2012. Total liabilities have increased by NOK 7 122 million to NOK 62 847 million, mainly due to the increase in financial long term liabilities partially dampened by the reduction of its tax payable position.

PROPOSEd dividENdA dividend distribution of NOK 9 000 million is recommended.

3.4 COMMENTS ON ThE fiNANCiAl RiSkS

MARkET RiSkThe Company is exposed to changes in currency exchange rates, in particular USD and EUR, as the Company’s revenues are largely in these two currencies, and to changes in oil and gas prices. The Company hedges the exposure on recognised crude oil sales in foreign currencies and on a significant portion of its gas sales. The Company is also exposed to changes in interest rate levels, as the Company’s debt is subject to a floating interest rate.

CREdiT RiSkRisk associated with the inability of counter-parties to fulfil their obligations is considered low, as the Company’s sales are mainly to group companies and other large corporations. The Company has not realised losses on receivables in previous years.

liqUidiTy RiSkThe Company’s liquidity is considered satis-factory. It is anticipated that the Company

OPERATiNG ExPENSESAfter deduction of charges to partners, net operating costs were NOK 17 913 compared to NOK 15 141 million in 2011. This increase results in large part from the one-off changes done in 2011 in the Company’s valuation methodology regarding the underlift /overlift position for oil, gas, condensate and LNG, being valued at the last known prices at the closing date instead of their production cost. Applying this new approach, the product stock varia-tion was increased in 2011 by NOK 3 221 million. The accrued effect after tax of this change was NOK 680 million. In 2012, this last known price valuation methodology has been consistently applied and the variation of the underlift position has had a positive effect on the operating income of NOK 321 million, due to both increased quantities in the underlift position and increased market prices. All Total E&P Norge’s 2012 exploration drilling has been considered as successful and related expenditures have therefore been capitalized for further economical evaluation. Total E&P Norge has, in addition, increased its exploration effort in geological and geo physical surveys and in purchases of seismic data leading to higher exploration expenses in 2012 compared to 2011. Production and transportation expenses are lower than in 2011, the exploitation costs of owned transportation assets being reduced after the Gassled disposal at the end of 2011. Provisions for well plugging, dismantlement and removal charges are increasing due to additional new assets in service (Atla, Visund South) and higher estimated well plugging costs.

NET iNCOMEThe pre-tax profit for 2012 was NOK 32 838 million compared to NOK 35 971 million recorded in 2011. After taking into account current and deferred taxes of NOK 23 417 million, the net profit for the year was NOK 9 421 million compared with NOK 9 709 million in 2011.

3.2 COMMENTS ON ThE STATE-MENT Of CASh flOWS

CASh flOWSCash flow from operations was NOK 17 093 million compared to NOK 19 276 million in 2011. After working capital variation, signifi-cantly impacted in 2012 by the cash settle-ment in January 2012 of the Gassled sale transaction made in 2011, increased tax payments and, in 2011, by changes in working capital related to the net underlift

iNvESTMENTS TOTAllEd NOk 16 202 MilliON (iNClUdiNG ExPlORATiON,

APPRAiSAl ANd ACqUiSiTiONS), WhiCh REPRESENTS A 55% iNCREASE COMPAREd WiTh

ThE NOk 10 410 MilliON iN 2011

SAlES Of ASSETSTotal E&P Norge sold its shares in Gasnor mid 2012 to Shell Norge AS. As previously mentioned the ExxonMobil swap transaction closed in December 2012.

fiNANCiNGAll funding requirements for the year were met from internal group resources. At year-end, loans and overdraft facilities were in place with an affiliated company for NOK 10 000 million. The actual cash flow needs have led to increased drawings and to a long term borrowing position of NOK 9 000 million at year end.

3.3 COMMENTS ON ThE bAlANCE ShEET

fixEd ASSETS Total fixed assets after depreciation and amortisation have increased to NOK 59 939 million in 2012 compared to NOK 50 232 million in 2011. Total E&P Norge has increased its assets in progress as a consequence of its substantial development and exploration program. The producing assets have been reduced due to the disposal of the Tampen area participating interests, this effect being partially offset by the acquisition of interests

11

Eleven persons work part-time for the Company, of which nine are women. All remaining staff are in full-time positions. 38% of the local employees were union members belonging to TEKNA or Industri-Energi Avdeling 268. Total E&P Norge is member of Norsk olje og gass, the Norwegian Oil and Gas Associ-ation, which is affiliated with NHO, the Confederation of Norwegian Enterprise.

APPliEd RESEARCh5The R&D centre in Total E&P Norge is the largest of five international R&D centres outside France within the Exploration & Production (E&P) branch of the TOTAL Group. All of these centres are part of an integrated research strategy. Total E&P Norge’s R&D objectives focus on challenges associated with the Norwegian Continental Shelf, covering three technical domains: subsurface including drilling and well technology, production and environment. The TOTAL Group provides access to the substantial research under-taken in France and elsewhere. The Norwegian Petroleum Directorate operates FORCE, a forum for reservoir characterisation, reservoir engineering and exploration technology cooperation. Total E&P Norge contributes in specialised subcommittees in FORCE. The Research Council of Norway runs two major R&D programmes aligned with the OG21 priorities: these are PETROMAKS, covering basic research, and DEMO2000, covering development and demonstration. Total E&P Norge takes an active role in both programmes, providing technical expertise, pilot testing opportunities and financial support for projects.

hSE PERfORMANCE, OPERATEd ACTiviTy iN 20126

The Company met its main objective, avoiding any fatal or serious accidents in 2012. There was one Lost Time Injury (LTI) during the year. The corresponding frequency, LTIF, at 0.61, was within the objective of maximum 0.7. With two medical treatment incidents in addition to the LTI incident, the Total Recordable Injury Rate (TRIR) was 1.83. This met the annual objective of a TRIR below 2. The LTI incident occurred on a seabed survey vessel at Norvarg. While servicing equipment used for seabed penetration tests, a person was struck in the face by part of the equipment, causing injury to the face and teeth which required hospital treat-ment. The investigation concluded that the consequence, under slightly altered circum-stances, could have been worse. This incident is therefore reported as one of two high potential incidents in 2012. The other high potential incident involved a dropped object on a subsea construction vessel. Due to the high activity level on marine vessels and the reported incidents, additional safety improvement actions have been implemented on vessels in 2012. Total E&P Norge has an annual HSE programme which includes activities to improve the HSE standard in operated activities. 93% of this programme was fulfilled, while the objective was 94%. A total of seven internal audits, 25 external audits and 15 verifications were performed during 2012. Seven management inspections on drilling rigs and marine vessels added to the high HSE activity. In 2012, a bi-yearly campaign assessing individual health risk related to cardiovascular illness, diabetes and lifestyle was carried out. 180 employees participated. A screening campaign related to early detection of colon and prostate cancer among persons aged 50+ was also performed. The same relates to the annual campaign promoting physical activity. A weekly, individual activity program aimed at preventing neck, shoulder and back problems was also carried out amongst employees. Absence due to illness in the Company was 2.0%, compared with 1.9% in 2011. The total absence (employees’ illness + leave due to own children’s illness) was 2.4%. The Company has a Rehabilitation Committee that is responsible for providing relevant assistance to employees suffering from long term illness.

will be able to fund its future cash require-ments through cash-flows from operations and funding loans within the TOTAL Group.

EMPlOyEES ANd ORGANiSATiON4

At the end of 2012, the total number of staff employed by the Company was 369. This figure includes 265 local employees, 66 expatriated staff and 6 integrated contac-tors in the Total E&P Norge organisation. There are also 32 employees assigned abroad or to partners in Norway included in the total figure.

ThE COMPANy MET iTS MAiN ObjECTivE, AvOidiNG ANy fATAl OR SERiOUS ACCidENTS iN 2012

ThE TOTAl E&P NORGE ORGANiSATiON iS vERy iNTERNATiONAl.

AT yEAR-ENd, 25 diffERENT NATiONAliTiES WERE REPRESENTEd.

divERSiTy ANd iNTERNATiONAliSATiON hAvE bEEN PRiORiTy AREAS

fOR SEvERAl yEARS ANd ARE PART Of OUR lONG-TERM STRATEGy

The Company pay particular attention to the employees’ working conditions, respecting individuals, avoiding discrimination, and protecting their health and safety. Personnel are solely recruited on the basis of our require-ments and the specific capabilities of the individual applicants. Total E&P Norge develop their professional skills and careers without discrimination regarding race, gender, or affiliation with a political, religious, or union organization or minority group. Total E&P Norge is preparing its organi-sation for new operated activity in the ongoing development and eventually the production phase of the Martin Linge. An extensive recruitment and training process is ongoing, and will last for several years. The current labour market is tight, but the Company will not compromise as regards the required competence and qualifications. In addition to recruitment, considerable effort is being directed towards providing development opportunities for employees already in the organisation. The Total E&P Norge organisation is very international. At year-end, 25 different nationalities were represented. Diversity and internationalisation have been priority areas for several years and are part of our long-term strategy. Our local staff includes a total of 107 women. At senior position levels, 22% of the employees are women. The Company recruited 36 new employees in 2012.

In addition to participation in research projects – usually within a joint industry project format – there is participation in the training of young professionals coming from both French and Norwegian universities. Through R&D co-operation with the Norwe-gian universities, Total E&P Norge financed and provided professional contributions to the supervision of seven students’ PhD projects in 2012.

12

duration and estimated quantity for a blow-out scenario, when applicable. Based on the conclusions of these assessments and the principle that the Company always adheres to the regulatory requirements and Company rules, whichever are more stringent, we are confident that Total E&P Norge practices sound management as regards the environmental impact of its activities. The certification according to the ISO 14001 standard was renewed in 2012. The recertification audit conducted by Det Norske Veritas Certification AS revealed only one minor nonconformity, which will be corrected before the periodic audit in 2013. Detailed information on our environmental accounts and their impact can be found in the annual discharge report submitted through the joint electronic reporting format for the Climate and Pollution Agency (Klif), the Norwegian Petroleum Directorate (NPD) and the Norwegian Oil and Gas Association (NOROG). This report is accessible from the NOROG website (www.norog.no). As regards the production and operation of the operated field Skirne, no major

change in the emissions compared to the previous year’s figures was recorded in 2012. The Atla field started producing in October. So far, the Skirne and Atla wells are not producing at the same time, which means that the annual contribution to the emissions from the Heimdal installation is about the same. The discharge accounts from both the Atla and Garantiana wells are provided in the table above, including environmental characterisation of the chemicals discharged. In addition to 4 837 tonnes of water-based mud and cuttings from Atla and Garantiana, disposed of on site, a total of 4 233 tonnes of oil-based mud, water-based mud and cuttings were brought to shore for treatment. The CO2 and NOx emissions from our operated activities in 2012 are illustrated in the figures below. The CO2 emissions from Atla are subject to CO2 quotas.

OUTlOOk fOR 20138Total E&P Norge attaches high importance to corporate social responsibility and the due compliance by all Company staff and our cooperating partners with the Ethics Charter and Code of Conduct determined by the TOTAL Group. The Board is of the opinion that 2013 will be a significant year for Total E&P Norge as it builds towards a greater role as operator on the Norwegian Continental Shelf (NCS), and as it enters into the execution phase of the Martin Linge project. Combined with a very high activity level in all parts of the organisation, the challenges in 2013 are many. The Board wishes to high-light a few of these:

Meet the Company ambitions with regard to health, safety and the environment.

Timely progress of the Martin Linge development project in close co-opera-tion with our main contactors towards planned production start-up at the end of 2016.

ENviRONMENTAl ACCOUNTS ANd iMPACT7

The objective of no harmful impact on the marine environment was achieved for the Atla drilling operations. For the Garantiana drilling operations, the analysis is not yet completed. However, there is so far no indication that the objective will not be met. There was one spill subject to the mandatory Petroleum Safety Authority Norway notification in 2012. While drilling the Garantiana exploration well, an acci-dental spill of 50 litres of hydraulic oil from the BOP crane occurred. As the hydraulic oil did not have an HOCNF, it is automatically classified as a black spill and the notifica-tion requirement therefore applies. Environmental impact assessments or risk assessments for our activities have been undertaken on a regular basis. These have been based on offshore environmental monitoring and detailed knowledge of inventories and the environment around our operation sites, as well as the probability,

USEd ExPORTEd diSChARGEd USEd ExPORTEd diSChARGEd USEd ExPORTEd diSChARGEd

Total Green Substances 227.1 0 148.4 2 693.2 42.0 586.5 2 920.3 42 734.9

Total Yellow Substances 74.4 0 6.2 566.6 3.7 14.6 641.0 3.7 20.7

Total Red Substances 0.036 0 0.0036 2.4 0 0.0012 1.6 0 0.0048

Total Black Substances 0 0 0 0 0 0 0 0 0

ATlA GARANTiANA TOTAlChEMiCAl USE ANd diSChARGES fROM dRilliNG / 2012 (TonneS)

NOx EMiSSiONS fOR OPERATiON ANd SUPPORT ACTiviTiES (TonneS)

CO2 EMiSSiONS fOR OPERATiON ANd SUPPORT ACTiviTiES (1 000 TonneS)

11

35.5

6.6

124

200

150

100

50

0

AtlA gArAntiAnA

20

15

10

5

0

AtlA gArAntiAnA

13

The Board takes note of the fact that the Minister of Petroleum and Energy will present a white paper to the Storting during spring 2013 proposing an opening of the Barents Sea Southeast and Jan Mayen for petroleum activity and inclu-sion in the 23rd Licensing Round. These measures, together with political signals of a possible re-opening of Nordland VI after the election of a new parliament in September 2013, will secure important and timely access for the petroleum industry to new acreage in prospective areas in northern waters.

As large parts of the Norwegian Conti-nental Shelf continue to mature, the emphasis will switch to the management of lifetime extension for maturing fields and facilities, particularly through the tie-back of smaller satellite discoveries and/or more challenging reservoirs. This requires an evolution in thinking, towards cost effectiveness, enabling technologies and greater standardisation of solutions. This must be addressed by all players in the industry – authorities, oil companies, contractors and service companies.

The Company’s financial results in 2013 will probably, in light of the expected drop in production level due to the many forecasted field revisions and production stops, be lower than in recent years. The financial results will further depend on the expenditure targets and again are partially dependent upon prevailing hydrocarbon prices and foreign exchange rates.

The Board’s general optimism for the future development of the Company, as expressed above, is based on its confidence in the quality and competence of the Company’s staff in Norway.

ACCOUNTS9The 2012 accounts and explanatory notes are presented in this annual report. We are not aware of any matters not dealt with in this report or the accompanying accounts that could be of significance when evaluating the Company’s position at 31 December 2012 and the results of the year thus ended. Taking into account the legal require-ments, it is proposed that the Company’s net profit shall be distributed as follows:

2012 net income NOK 9 421 000 000 To retained earnings NOK 421 000 000Dividend NOK 9 000 000 000

Successfully complete the appraisal drilling of the operated Norvarg discovery in the Barents Sea with due consideration to both the stringent safety and environ-mental conditions that apply in the Barents Sea. It is hoped that this well can be a positive step in the direction of a possible future field development.

Be an active and constructive partner with influence on key decisions within our portfolio of core non-operated licences. Special attention will be given to Ekofisk Accommodation, Eldfisk II redevelopment and the Ekofisk South projects to closely monitor the cost development and schedule.

A positive outcome of our application in the 22nd Licensing Round. Continue the search for new licences and operator-ships through applications and APA 2013, in addition to continued portfolio optimi-sation activities.

Maintain and recruit the competence needed for our future activity level.

With respect to the framework conditions on the NCS that affect our sector, the following may be highlighted:

The increases in oil prices in 2007/2008 were associated with significant cost inflation on the NCS that has persisted into 2012. This causes concern in relation to the marginal profitability of many new field developments on the NCS. Although the oil price has rebounded during 2012, gas prices remain lower on an energy equivalent basis.

ThE bOARd Of diRECTORS Of TOTAl E&P NORGE AS // 5 MArch 2013

chAirMAn

MAnAging Director

* emploYeeS’ RepReSenTaTiveS

PAtrice De ViViès

hArriett elizAbeth Dreyer*

eric Denelle

Kristine holM*

oDD roger enoKsen

line steinnes*

DoMinique PAul MArion

olAV steffensen*

toM ruuD

MArtin tiffen

Pierre bousquet

the Martin linge reservoirs

15

income statement

Million nok notes 2012 2011 Variance

reVenUes

Crude oil and gas sales 1 49 614 49 129 485

Tariff income 529 2 076 (1 547)

Sundry income 2 966 121 845

ToTAl REVEnUES 51 109 51 326 (217)

oPeratinG eXPenses

Purchases of gas 105 186 (81)

Salaries and employee benefits 3, 4 736 628 108

licence fees, royalties and governmental expenses 459 481 (22)

Production and transportation expenses 5, 6 7 982 8 122 (140)

Exploration expenses 612 237 375

General and administrative expenses 234 206 28

Provisions for well plugging, dismantlement and removal 7 1 934 1 583 351

Depreciation, depletion and amortization 10 6 171 6 365 (194)

Variation of product stock (321) (3 221) 2 900

other operating cost 2 3 554 (551)

oPERATinG EXPEnSES 17 913 15 141 2 772

oPeratinG ProFit 33 196 36 185 (2 989)

FinanciaL income anD (eXPenses)

Financial income 8 63 89 (26)

Financial expenses 8 (364) (206) (158)

income from subsidiary and related companies 13 37 (24)

net exchange gains/(losses) (70) (133) 63

FinAnCiAl inCoME/(EXPEnSES) – nET (358) (213) (145)

orDinarY net income BeFore taXes 32 838 35 971 (3 133)

Taxes payable 9 23 232 25 137 (1 905)

Deferred taxes 9 185 1 125 (940)

net income 9 421 9 709 (288)

aLLocation

Dividend 13 9 000 9 600 (600)

Retained earnings 13 421 109 312

totaL aLLocation 9 421 9 709 (288)

16

BaLance sHeet

Million nok / AT 31 DECEMBER notes 2012 2011 Variance

FiXeD assets

intanGiBLe assets

licence acquisitions 10 2 813 794 2 019

ToTAl inTAnGiBlE ASSETS 2 813 794 2 019

ProPertY, PLant anD eQUiPment 8, 10

Buildings 224 235 (11)

Producing assets – completed 39 648 41 188 (1 540)

Producing assets – in progress 12 416 5 573 6 843

Exploration wells – in progress 2 958 2 081 877

Transport – and other equipment 1 592 62 1 530

ToTAl PRoPERTY, PlAnT AnD EQUiPMEnT 56 838 49 139 7 699

FinanciaL inVestments

Shares 11 197 200 (3)

long-term receivables 92 99 (7)

ToTAl inVESTMEnTS 288 299 (11)

totaL FiXeD assets 59 939 50 232 9 707

cUrrent assets

inVentories

Material and supplies 395 405 (10)

net oil/gas (overlift)/underlift 3 964 3 643 321

ToTAl inVEnToRiES 4 359 4 047 311

accoUnts receiVaBLe

Customers 12 3 656 4 211 (555)

other 276 3 932 (3 656)

ToTAl ACCoUnTS RECEiVABlE 3 931 8 143 (4 212)

CASH AnD CASH EQUiVAlEnT 12 1 737 0 1 737

totaL cUrrent assets 10 027 12 191 (2 164)

totaL assets 69 966 62 423 7 543

17

Million nok / AT 31 DECEMBER notes 2012 2011 Variance

eQUitY

PaiD-in caPitaL

Share capital (4 201 000 shares à 1 000.00) 13 4 201 4 201 0

Share premium 13 2 340 2 340 0

ToTAl PAiD-in CAPiTAl 6 541 6 541 0

retaineD earninGs

Retained earnings 13 578 157 421

ToTAl RETAinED EARninGS 578 157 421

totaL eQUitY 7 119 6 698 421

LiaBiLities

LonG-term ProVisions

Pension obligations 4 699 520 179

Deferred taxes 9 15 475 15 337 138

Well plugging, dismantlement and removal 7, 15 11 126 10 324 802

ToTAl lonG-TERM PRoViSionS 27 299 26 180 1 119

otHer LonG-term LiaBiLities

long-term loans from associated companies 14 9 000 0 9 000

long-term loans from other companies 14 1 464 0 1 464

other long-term liabilities 10 126 (116)

ToTAl lonG-TERM liABiliTiES 10 473 126 10 347

cUrrent LiaBiLities

overdraft facilities 12 0 404 (404)

Accounts payable and accrued expenses 12 3 899 3 066 833

Taxes other than income taxes 50 46 4

income taxes payable 9 12 005 16 246 (4 241)

Proposed dividend 9 000 9 600 (600)

other short-term debt 120 56 64

ToTAl CURREnT liABiliTiES 25 074 29 418 (4 344)

totaL LiaBiLities 62 847 55 724 7 122

totaL eQUitY anD LiaBiLities 69 966 62 423 7 543

Guarantees 3 380 330

18

casH FLow statement

Million nok 2012 2011 Variance

casH FLows From oPeratinG actiVities

net income before taxes 32 838 35 971 (3 133)

Current taxes on income (22 451) (25 137) 2 686

Depreciation, depletion and amortisation 6 171 6 365 (194)

long-term provisions 1 330 1 548 (218)

loss / (gain) on sales of property, plant and equipment (795) 529 (1 324)

cash flows from operations 17 093 19 276 (2 183)

Cash increase/(decrease) from variations in:

Accounts receivable and prepaid expenses 4 212 (2 384) 6 596

inventories (311) (3 306) 2 995

Accounts payable and accrued liabilities 901 804 97

Accrued taxes (4 241) 2 547 (6 788)

long-term receivables 7 12 (5)

net casH ProViDeD BY oPeratinG actiVities 17 661 16 948 713

casH FLows From/(to) inVestinG actiVities

Capital expenditures (16 202) (10 410) (5 792)

Proceeds from sales of property, plant and equipment 1 478 3 788 (2 310)

net casH UseD in inVestinG actiVities (14 724) (6 622) (8 102)

casH FLows From/(to) FinancinG actiVities

increase/(decrease) in associated long-term liabilities 9 000 (1 000) 10 000

increase/(decrease) in other long-term liabilities (197) (3) (194)

increase/(decrease) in overdraft facilities (404) 404 (808)

Dividend paid to shareholder (9 600) (9 400) (200)

net casH FLows From/to FinancinG actiVities (1 201) (9 999) 8 798

net increase/(decrease) in cash and cash equivalents 1 737 328 1 409

Cash and cash equivalents at 01.01 0 328 (328)

casH anD casH eQUiVaLents at 31.12 1 737 0 1 737

19

The financial statements are presented in accordance with the regulations in the Accounting Act and norwegian Generally Accepted Accounting Principles.

reVenUe recoGnition. Revenues associated with sales and transportation of hydrocarbons is recognised when title passes to the customer at the point of delivery of the goods based on the contractual terms of the agreements. other services are recognized at the time of delivery.

Joint VentUres. The Company’s shares in joint ventures are booked under the respective lines in the profit and loss statement and the balance sheet. The income statement of Total E&P norge AS reflects the Company’s net share of operations.

BaLance sHeet cLassiFication. Current assets and short-term liabilities consist of receivables and payables due within one year after transaction date. other balance sheet items are classified as fixed assets / long-term liabilities. Current assets are valued at the lowest of acquisition cost and fair value. Short term liabilities are recognized at nominal value. Fixed assets are valued at cost, less depreciation and impairment losses. long term liabilities are recognized at nominal value.

ForeiGn cUrrencY transLation. Transactions in foreign currency are translated at the rate applicable on the transaction or invoicing date. Monetary items in a foreign currency are translated into nok using the exchange rate applicable on the balance sheet date or, if covered by forward currency exchange contracts, at the contract rate. Changes to exchange rates are recognized in the income statement as they occur during the accounting period.

casH anD casH eQUiVaLents. Cash and cash equivalents includes cash, bank deposits and other short term highly liquid investments with maturities of three months or less.

intanGiBLe assets, ProPertY, PLant anD eQUiPment. Costs related to intangible assets, property, plant and equipment are capitalized and depreciated linearly over the estimated useful life. Maintenance is expensed as incurred, whereas costs for improving and upgrading property plant and equipment are added to the acquisition cost and depreciated with the related asset. Depreciation charges for licence acquisitions, offshore and onshore production installations, booked under operating expenses, are determined by the unit-of-production method. other onshore property, plant and equipment are depreciated by use of the declining balance method. if carrying value of a non current asset exceeds the estimated recoverable amount, the asset is written down to the recoverable amount. The recoverable amount is the greater of the net realizable value and value in use. in assessing value in use, the discounted estimated future cash flows from the asset are used.

eXPLoration. Exploration costs are treated in accordance with the successful effort method, with the well as basis for the evaluation. Exploratory drilling costs are capitalized pending the determination of whether the wells found proved reserves. if the wells are determined commercially unsuccessful costs are expensed as depreciation. Geological and geophysical costs are expensed as incurred.

researcH anD DeVeLoPment. Research and development costs are expensed as incurred.

caPitaLization oF interest costs. interest costs incurred in connection with the financing of development projects, individually stipulated to accumulate expenditures in excess of nok 800 million are capitalized as part of the development costs.

LeasinG commitments . leases transferring substantially all the risks and rewards incidental to ownership from the lessor to the lessee are treated as financial leases. These contracts are capitalized as assets at fair value, or if lower, at the present value of the minimum lease payments according to the contract. A corresponding financial debt is recognized. These assets are depreciated over the shortest of the estimated economical life time of the asset and the leasing period.leasing agreements without transfer of substantially all the risk and control to the lessee are considered as operating leases. The Company’s leasing costs in operating leases are reflected as operating expenses.

sHares. The investment is valued as cost of the shares in the subsidiary, less any impairment losses. An impairment loss is recognized if the impairment is not considered temporary, in accordance with generally accepted accounting principles. impairment losses are reversed if the reason for the impairment loss disappears in a later period. The operations of the subsidiaries are considered immaterial compared to the level of the company’s business, and consolidated accounts have therefore not been prepared. Group accounts are prepared by the holding company ToTAl S.A. resident in France.

inVentories. Consumable inventories consist of equipment for exploration and field development, and are calculated at average purchase prices. Spare parts are charged to operations when acquired.

oVer-/UnDerLiFtinG. As from 2011 the overlift and underlift of petroleum products is valued at sale price and presented as current assets in the balance sheet.

FUtUre weLL PLUGGinG, aBanDonment anD remoVaL costs. Annual provisions are made to meet future costs for decommissioning, abandonment and removal of installations. Provision requirements are reviewed on an individual field basis, and the net present value of future costs is the basis for the recognized obligation. Changes in time element (net present value) of the abandonment provision are expensed annually and increase the obligation in the balance sheet. Changes in estimates are recognized over the remaining production period, unless the production is for material purposes completed. in such a case the change in estimate is recognized immediately.

Pensions. Defined benefit plans are valued at the present value of accrued future pension benefits at the balance sheet date. Pension plan assets are valued at their fair value. Changes in the pension obligations due to changes in pension plans are recognized over the estimated average remaining service period. The accumulated effect of changes in estimates and in financial and actuarial assumptions (actuarial gains or losses) exceeding 10% of the higher of defined benefit pension obligations and pension plan assets at the beginning of the year, is recognized in the income statement over the estimated average remaining service period. The net pension cost for the period is classified as salaries and personnel costs.

income taX. income taxes reflect both current taxes and taxes payable in the future as a result of the current year’s activity. When calculating the deferred taxes, the company uses the liability method, under which deferred taxes are calculated applying legislated tax rates in effect at the closing date. Earned future deductible uplift allowance is offset against the special tax when calculating deferred taxes.

casH FLow statement . The statement of cash flow has been prepared in accordance with the indirect method as per the temporary norwegian accounting standard.

accoUntinG PoLicies

20

notes

Million nok 2012 2011

Crude oil 32 454 33 576

nGl 2 703 2 723

Gas 13 291 11 866

Condensate 1 166 964

Total 49 614 49 129

Million nok 2012 2011

Salaries 420 356

Social security and other benefits 129 100

Pension cost 92 62

other 95 110

Total salaries and employee benefits 736 628

Average number of full-time employments 322 289

Most sales of petroleum products are within Europe with some lnG cargoes sold in other markets. The main part of the oil and liquids sales are to Group companies.

in 2012, Total E&P norge AS entered into asset exchange agree- ment with ExxonMobil Exploration and Production norway AS (ExxonMobil) for its participating interest in most of Tampen area assets, in exchange of ExxonMobil’s interest in oseberg and Dagny assets. Effective date of the transaction was 1 January 2012. For accounting purpose the closing is 3 December 2012. The transaction has been booked as a sale and an acquisition.

Fees paid to the Board of Directors in 2012 amounted to nok 582 500. Salaries and remunerations to the Managing Director amounted to nok 5 594 274 in 2012. There are no agreements with the Managing Director or The Board of Directors for special bonuses or separate remuneration in connection with termination. The General assembly of ToTAl S.A. has decided restricted share plans and share subscription option plans. The restricted shares plan is subject to certain conditions of economic

The sale has contributed to a one-off positive net after tax result of about 1 Bnok.

During the year 2011, Total E&P norge AS had sold its partici-pating interest in Gassled assets to Silex Gas norway AS. This sale had contributed to a one-off positive net after tax result of about 2 Bnok.

performance of the ToTAl S.A. group after a vesting period. Certain employees of Total E&P norge AS were invited to participate in the plans. Given the immaterial value of the benefits, no expense has been recognized in the accounts. long-term receivables contain loans to employees of nok 25 million. Total E&P norge AS have also issued a guarantee to nordea for loans to Total E&P norge AS employees of total nok 380 million as per 31.12.2012. no company loans were granted to the Managing Director.

01

02

03

crUDe oiL anD Gas saLes

sUnDrY income / otHer oPeratinG costs

saLarY, emPLoYee BeneFits, nUmBer oF emPLoYees

21

Million nok 2012 2011

Service cost 93 84

interest cost 71 69

Return on pension plan assets (52) (54)

Amortized prior service cost 34 37

net periodic pension cost 146 136

tHe FoLLowinG statement Presents tHe statUs oF tHe PLans at 31 DecemBer 2012:

Million noknet FUnDeD

Pension PLannet UnFUnDeD Pension PLan

Projected benefit obligation 1 617 1 548

Pension plan assets 880 348

net projected pension assets (obligation) (737) (1 200)

Unrecognised actuarial (gains)/losses 734 504

net pension asset/(provision) (3) (696)

net unfunded plans are presented under long-term provisions.

tHe actUariaL Present VaLUe Has Been caLcULateD UsinG tHe FoLLowinG assUmPtions:

2012 2011

Discount rate 2.5 % 2.5–3.4 %

Projected wage increases 4.0 % 4.0 %

Projected Pension regulation 3.8 % 3.8 %

Projected return on plan assets 2.5 % 4.8 %

The Company maintains a collective benefit retirement plan with DnB. The plan gives all employees on national payroll (287 at 31.12.12), a right to receive defined future pensions. in addition, this plan also includes retired personnel (237 at 31.12.12) who receive defined future pensions. Employees

Total E&P norge AS is obliged to follow the law on mandatory pension obligations. The pension scheme satisfies the requirement in this Act.

under French and other benefit plans are the responsibility of other related companies. Total E&P norge AS is charged with the net periodic pension costs covering those employees. The Company also has partly unfunded plans for certain employees with higher salary.

04 emPLoYee retirement PLans

22

Million nok 2012 2011

FinanciaL income

interest income from group companies 41 88

other interest income 22 1

Total financial income 63 89

FinanciaL eXPenses

interest expenses to group companies (52) (31)

other interest expenses (312) (210)

Capitalized financial interest 0 35

Total financial expenses (364) (206)

operating costs reflect a compensation – of nok 440 million for 2012 – as part of the exchange of participating interests on the norwegian Continental Shelf in 1988. in 2012 the Company has incurred expenses of nok 104 million on Research and Development activities. The Company’s R&D program is a part of the ToTAl Group plan and is aimed at improving the value of our current and future investments on the norwegian Continental Shelf. The focus is on improving

The change in provision in 2012 for future well plugging, dismantlement and removal costs has been calculated at nok 1 934 million using the unit-of-production method.

understanding, developing new methodologies, models and hardware in the areas of enhanced oil recovery, reservoir/well monitoring, flow assurance and environmental assessment/monitoring. The program of work is accomplished through joint industry projects collaboration with norwegian universities and institutes. The program also recognizes technical challenges set out in the national technology strategy, oG21.

incurred costs in 2012 amounting to nok 874 million have been offset to previous year’s provisions.

06

07

08

ProDUction anD transPortation eXPenses

ProVisions For FUtUre weLL PLUGGinG, DismantLement anD remoVaL costs

FinanciaL income anD eXPenses

The audit fee for work performed in 2012 amounted to nok 4 486 000 excl VAT, of which nok 2 670 000 was for audit

related services, nok 150 000 for other attestation services and nok 1 666 000 for income tax and VAT advice.

05 aUDitor

23

Million nok 2012 2011

tHe Basis For tHe cUrrent taX ProVisions is caLcULateD as FoLLows:

net income before taxes 32 838 35 971

Permanent differences* (2 439) (2 299)

Change in timing differences 933 (1 612)

Basis for current tax calculation 31 332 32 060

onshore income 83 (179)

Uplift (2 611) (2 295)

Basis for Special offshore Tax 28 804 29 586

Corporate Tax 28% 8 773 8 977

Special Revenue Tax 50% 14 402 14 793

Previous years’ adjustment (56) 1 367

Tax cost on interim result for Sale and Aquisitions of assets 114 –

Deferred tax 185 1 125

This year’s tax cost 23 418 26 262

instalments of income taxes paid (11 067) (8 664)

other payable taxes related to previous years (103) 1 140

Total taxes payable in the balance sheet 12 005 16 246

Taxes include both current and deferred taxes on income. The special petroleum tax has been calculated after the deduction of the available uplift allowance.

09 income taXes

24

Million nok 2012 2011

DeFerreD taX LiaBiLities are ProViDeD on aLL temPorarY DiFFerences Between tHe FinanciaL rePortinG Basis anD tHe taX Basis oF tHe comPanYs assets anD LiaBiLities :

Property, plant and equipment 33 188 29 718

Pensions (699) (636)

other 1 391 3 091

Provision for well plugging and decommissioning (10 405) (9 506)

Basis for deferred ordinary taxes 23 475 22 667

Deferred Uplift (4 659) (3 544)

onshore assets (1 017) (1 144)

Basis for deferred special taxes 17 799 17 979

DeFerreD taX:

Corporate Tax 28% 6 573 6 347

Special Revenue Tax 50% 8 900 8 991

Deferred tax liabilities** 15 473 15 337

Change in deferred tax** 185 1 125

taX ProoF:

income before taxes 32 838 35 971

Marginal tax rate 78% 25 614 28 057

Tax effect of:

- Permanent and other differences* (454) (2 032)

- Earned uplift (1 930) (1 352)

- Previous years' adjustment 189 1 589

This years tax cost 23 418 26 262

* Mainly related to the disposal of Tampen area in 2012 and Gassled in 2011. ** Discrepancies between income statement and balance sheet movements, is due to uplift transferred as part of an acquisition subject to PTA §10.

09 income taXes (ConTinUED)

25

Million nokProD. inst.

comPLeteD

transPort- & otHer

eQUiPments BUiLDinGsconstrUction

in ProGresseXPLo weLLsin ProGress

LicenceacQUisitions

totaL aLL assets

At cost 01.01.12 123 235 421 328 5 573 5 142 3 836 138 535

Addition 5 699 1 568 (4) 7 476 833 2 126 17 697

Transfers 459 0 0 (633) 174 0 0

Retirements and sales (6 562) 0 0 0 (22) 0 (6 584)

Accumulated investments at 31.12.12 122 831 1 988 324 12 416 6 126 5 963 149 649

Accumulated depreciation 83 184 396 101 0 3 168 3 150 89 998

Book value at 31.12.12 39 648 1 592 224 12 416 2 958 2 813 59 651

2012 depreciation 5 892 37 8 0 125 108 6 171

Estimated useful life of assets 10-20 years 30-50 years Evaluation Evaluation

Depreciation plan Unit-of-prod Decl / linear Decl bal - - Unit-of-prod

Fixed assets include the following amounts for capital leasing agreements per 31 December 2012 and 2011:

Million nok 31.12.12 31.12.11

Transport and other equipment 1 544 0

Accumulated depreciation 20 0

Book value year end 1 524 0

The financial leasing is reflecting a contract with a fixed capital cost for a period of 18 years. Total E&P norge AS has in addition the possibility to extend this agreement by 9 more years.

All AMoUnTS in THoUSAnD nokreGistereD

oFFiceownersHiP

interestVotinG

interesteQUitY

31.12.2011

ProFit (Loss)

2011Book

VaLUe

sHares in sUBsiDiaries anD associateD comPanies:

ToTAl Etzel Gaslager GmbH Düsseldorf 100.00% 100.00% 11 053 (2) 8 736

ToTAl Gass Handel norge AS Stavanger 100.00% 100.00% 7 532 74 300

norpipe oil AS Sola 34.93% 34.93% 72 300 40 800 178 347

Total subsidiaries and associated companies 187 383

sHares in otHer comPanies:

kunnskapsparken nord AS 11.75% 9 252

other 5

Total other companies 9 257

Total E&P norge AS sold its shares in Gasnor in 2012.

10

11

intanGiBLe assets, ProPertY, PLant anD eQUiPment

sHares

26

Million noksHare

caPitaLsHare

PremiUmretaineD earninGs totaL

Equity at 01.01.12 4 201 2 340 157 6 698

net income 9 421 9 421

Dividend (9 000) (9 000)

Equity at 31.12.12 4 201 2 340 578 7 119

At 31.12.12 Total E&P norge AS was a wholly owned subsidiary of Total Holdings Europe S.A., a company in the Total Group. The consolidated accounts of Total S.A. are available on www.ToTAl.com.

Million nok 2012 2011

receiVaBLes

intercompany companies 2 985 2 793

Total 2 985 2 793

PaYaBLes

overdraft facilities with associated finance companies - 398

intercompany accounts payable 168 40

Total 168 438

Unused short-term overdraft facilities with an associated finance company were nok 1 000 million at year end 2012. interest rates are dependant on currency and based on interbank offered rates.

Million nok tYPe saLes costs

GroUP comPanies

ToTAl S.A. Services 540

Total international ltd Sale of oil 479

Total Gas & Power ltd Sale of gas 7 909

Total oil Trading SA Sale of oil/lPG 33 013

Total E&P Uk Sale of lPG 55

Total E&P norge AS has different transactions with Group companies. All the transactions, are part of the normal business and with arm’s-length prices. The major transactions in 2012 are:

12

13

transaction anD cUrrent BaLances witH GroUP comPanies

eQUitY

27

As of 31 December 2012, the Company had no unused long-term credit facilities. The lending interest on long-term loans from associated companies is based on market rate.

DismantLement continGencies. Under the terms of the oil and gas licences, the State may require full or partial dismantlement and removal of offshore oil and gas installations, or assume ownership at no charge when production finally ceases or upon the expiration of the licences, and also if the licence is surrendered or recalled. in the event of take over, the State will assume responsibility for dismantlement and removal of installations. if the Storting should require dismantlement and removal of the installations, removal costs will be fully tax deductible for the licensees.

eQUiPment Leases. As operator, the Company have equipment lease rental obligations covering such operations as drilling rigs and other equipment. The duration periods of these lease agreements are from 1 to 2 years. The rental periods of offices and warehouse buildings have a duration of 3 to 11 years.

As of 31 December 2012 the long-term loans from other companies is linked to the booked financial leasing commitment.

The company has also entered into a lease contract for rental of a lnG carrier vessel (charter party) for the transportation of lnG production share of the Snøhvit fi eld. The commence-ment date of this contract is 2006 (ending 2018). As a partner in the fields under development and operation, the Company has leasing agreements for drilling rigs, helicopters, storage vessels and other vessels. leasing payments for Total E&P norge AS was in 2012 nok 1 386 million. Total future leasing costs for Total E&P norge AS are nok 14 426 million. DriLLinG commitments. Under the terms of the licence agreements, the company is committed to participate in the drilling of 4 exploration wells, of which 2 as operator and 2 as licensee.

The definitions used for proved, proved developed and proved undeveloped oil and gas reserves are in accordance with the United States Securities & Exchange Commission (SEC)’s final rule “Modernization of oil and Gas Reporting” issued on December 31, 2008. Proved reserves are estimated using geological and engineering data to determine with reasonable certainty whether the crude oil or natural gas in known reservoirs is recoverable under existing regulatory, economic and operating conditions. oil and gas reserves are assessed annually, taking into account, among other factors, levels of production, field reassessment, additional reserves from discoveries and acquisitions, disposal of reserves and other economic factors. This process involves making subjective judgments. Consequently, estimates of reserves are not exact measure-

ments and are subject to revision under well-established control procedures. The estimation of reserves is an ongoing process which is done within Total E&P norge AS by experienced geoscientists, engineers and economists under the supervision of the Company’s General Management. Persons involved in reserve evaluation are trained to follow SEC-compliant internal guidelines and policies regarding criteria that must be met before reserves can be considered as proved. The estimation of proved reserves is controlled by the Group through established validation guidelines. For further description of the Group’s internal control process, please refer to the Reference Document issued by Total S.A. and available at www.total.com.

Million nok 1 Year 2–3 Years 4–5 Years > 2018

leasing agreements 3 082 4 655 3 096 3 593

Million nok 2–5 Years 5 Year +

long term debt related to leasing commitment 196 1 268

RESERVES AT 31.12.2012oiL, nGL anD conDensate

(miLLion BBL)natUraL Gas

(BiLLion sm3)oiL eQUiVaLents

(miLLion BBL)

Proven, developed and undeveloped reserves 493 90 1 083

14

15

16

LonG-term DeBt

continGent LiaBiLities

oiL anD Gas reserVes (not aUDiteD)

28

Licence BLock FieLD own sHare VaLiD to oPerator

Pl006 2/5 Tor 100.00% 31.12.2028 Total E&P norge AS

Pl018 2/4, 2/7, 7/11 Ekofisk area 39.90% 31.12.2028 ConocoPhillips

Pl018B 1/6 Albuskjell 39.90% 31.12.2028 ConocoPhillips

Pl024 25/1 Frigg 47.13% 23.05.2015 Total E&P norge AS

Pl026 25/2 Rind 62.13% 23.05.2015 Total E&P norge AS

Pl029B (15/6) Dagny 30.00% 23.05.2015 Statoil Petroleum AS

Pl029C (15/6) Dagny 100.00% 31.12.2028 Total E&P norge AS

Pl034 30/05 Tune 10.00% 14.11.2015 Statoil Petroleum AS

Pl036 25/4 Vale 24.24% 11.06.2021 Statoil Petroleum AS

Pl036BS 25/4 Heimdal 16.76% 11.06.2021 Statoil Petroleum AS

Pl036D 25/4 Vilje 24.24% 11.06.2021 Statoil Petroleum AS

Pl040 29/9, 30/7 Martin linge 51.00% 31.12.2027 Total E&P norge AS

Pl043 29/6, 30/4 Martin linge 51.00% 31.12.2027 Total E&P norge AS

Pl043BS 29/6, 30/4 (islay Carve-out) Martin linge 51.00% 31.12.2027 Total E&P norge AS

Pl043CS 29/6 (islay Carve-out) islay 100.00% 31.12.2027 Total E&P norge AS

Pl043DS 29/6 (islay Carve-out) islay 100.00% 31.12.2027 Total E&P norge AS

Pl044 1/9 Tommeliten 15.00% 31.12.2028 ConocoPhillips

Pl046 15/8, 15/9 Sleipner 10.00% 31.12.2028 Statoil Petroleum AS

Pl046B 15/9 Volve 10.00% 31.12.2028 Statoil Petroleum AS

Pl046C 15/9 "H" - discovery 10.00% 31.12.2028 Statoil Petroleum AS

Pl046D 15/9 10.00% 03.02.2013 Statoil Petroleum AS

Pl048 15/5 Dagny 21.80% 31.12.2028 Statoil Petroleum AS

Pl048B 15/5 Glitne 21.80% 15.07.2016 Statoil Petroleum AS

Pl048E 15/6 Eirin 21.80% 31.12.2028 Statoil Petroleum AS

Pl051 30/2, 30/3 Huldra 24.50% 06.04.2015 Statoil Petroleum AS

Pl052B 30/3 Huldra 18.00% 06.04.2015 Statoil Petroleum AS

Pl053 30/6 oseberg Øst 14.70% 01.03.2031 Statoil Petroleum AS

Pl054 31/2 Troll 3.69% 30-09.2030 Statoil Petroleum AS

Pl055C 31/4 oseberg Øst 14.70% 01-03.2031 Statoil Petroleum AS

Pl062 6507/11 Åsgard 24.50% 10.04.2027 Statoil Petroleum AS

Pl064 7120/08 Snøhvit 5.00% 01.10.2035 Statoil Petroleum AS

Pl072C 16/7 Beta & Theta nE 10.00% 31.12.2028 Statoil Petroleum AS

Pl073 6407/01 Tyrihans 29.14% 31.12.2029 Statoil Petroleum AS

Pl073B 6406/03 Tyrihans 26.67% 31.12.2029 Statoil Petroleum AS

Pl077 7120/7 Snøhvit 10.00% 01.10.2035 Statoil Petroleum AS

Pl078 7120/9 Snøhvit 25.00% 10.10.2035 Statoil Petroleum AS

Pl079 30/9 oseberg Sør 14.70% 01.03.2031 Statoil Petroleum AS

Pl085 31/3, 31/5, 31/6 Troll 3.69% 30.09.2030 Statoil Petroleum AS

Pl085B 31/9, 32/4 Troll 3.00% 08.07.2030 Statoil Petroleum AS

Pl085C 31/3, 31/6 Troll 3.69% 30.09.2030 Statoil Petroleum AS

Pl092 6407/6 Mikkel 7.65% 09.03.2020 Statoil Petroleum AS

Pl094 6506/12 Åsgard 9.80% 10.04.2027 Statoil Petroleum AS

Pl094B 6406/3 Åsgard 7.68% 10.04.2027 Statoil Petroleum AS

Pl099 7121/4 Snøhvit 37.50% 01.10.2035 Statoil Petroleum AS

Pl100 7121/7 Albatross 35.00% 01.10.2035 Statoil Petroleum AS

17 Licence PortFoLio at 31.12.2012

29

17 Licence PortFoLio at 31.12.2012

Licence BLock FieLD own sHare VaLiD to oPerator

Pl102 25/5 Skirne & Byggve 40.00% 01.03.2025 Total E&P norge AS

Pl102C 25/5 Atla 40.00% 01.03.2025 Total E&P norge AS

Pl102D 25/5 40.00% 03.02.2013 Total E&P norge AS

Pl102E 25/5 40.00% 03.02.2013 Total E&P norge AS

Pl104 30/9 oseberg Sør 14.70% 01.03.2031 Statoil Petroleum AS

Pl104B 30/9 oseberg Sør 14.70% 03.02.2013 Statoil Petroleum AS

Pl110 7120/5, 7121/5 Snøhvit 25.00% 01.10.2035 Statoil Petroleum AS

Pl110B 7121/6, 8&9, 7122/5&6 Tornerose 18.40% 17.12.2014 Statoil Petroleum AS

Pl110C 7123/4 Snøhvit 18.40% 17.12.2014 Statoil Petroleum AS

Pl120 34/7, 34/8 Visund 11.00% 23.08.2023 Statoil Petroleum AS

Pl120 B 34/7, 34/8 Gimle 11.00% 23.08.2034 Statoil Petroleum AS

Pl121 6407/5 Mikkel 7.65% 28.02.2022 Statoil Petroleum AS

Pl127 6607/12 Alve north 50.00% 28.02.2023 Total E&P norge AS

Pl134 6506/11 Åsgard 10.00% 10.04.2027 Statoil Petroleum AS

Pl134B 6506/11 kristin & Morvin 6.00% 10.04.2027 Statoil Petroleum AS

Pl134C 6506/11 Morvin 6.00% 10.04.2027 Statoil Petroleum AS

Pl146 2/4 king lear discovery 22.20% 08.07.2027 Statoil Petroleum AS

Pl171B 30/12 oseberg Sør 14.70% 01.03.2031 Statoil Petroleum AS

Pl190 30/8 Tune 10.00% 10.09.2032 Statoil Petroleum AS

Pl193 34/11 kvitebjørn 5.00% 10.09.2031 Statoil Petroleum AS

Pl193C 34/11 kvitebjørn 5.00% 10.09.2031 Statoil Petroleum AS

Pl193E 34/11 kvitebjørn 5.00% 03.02.2013 Statoil Petroleum AS

Pl199 6406/2 kristin 6.00% 10.09.2033 Statoil Petroleum AS

Pl211 6506/6, 6507/4 Victoria discovery 40.00% 02.02.2032 Total E&P norge AS

Pl211B 6506/9, 6507/7 Victoria ext. 40.00% 02.02.2032 Total E&P norge AS

Pl219 6710/06 15.00% 02.02.2014 Statoil Petroleum AS

Pl237 6407/03 Åsgard 7.68% 10.04.2027 Statoil Petroleum AS

Pl249 25/5 Vale 24.24% 11.06.2021 Centrica

Pl255 6406/5, 6406/6, 6406/9 linnorm discovery 20.00% 12.05.2038 Shell

Pl257 6406/1, 6406/5 6.00% 10.09.2033 Statoil Petroleum AS

Pl263C 6507/11 Yttergryta ext. 24.50% 12.05.2037 Statoil Petroleum AS

Pl275 2/4 39.90% 31.12.2028 ConocoPhillips

Pl303B 15/6 Beta & Theta nE 10.00% 12.02.2012 Statoil Petroleum AS

Pl333 2/4 king lear discovery 22.20% 17.12.2013 Statoil Petroleum AS

Pl448 7120/7, 7120/8, 7120/9 Snøhvit 18.40% 15.06.2013 Statoil Petroleum AS

Pl479 6506/9&12 Smørbukk nord 9.80% 01.03.2012 Statoil Petroleum AS

Pl488 7019/2,3,11 &12, 7120/10 18.40% 01.03.2014 Statoil Petroleum AS

Pl535 7225/3, 7226/1 norvarg discovery 40.00% 15.05.2014 Total E&P norge AS

Pl554 34/6 Garantiana discovery 40.00% 19.02.2015 Total E&P norge AS

Pl554B 34/9 Garantiana discovery 40.00% 19.02.2015 Total E&P norge AS

Pl569 16/4 Theta nE 10.00% 04.02.2015 Statoil Petroleum AS

Pl574 29/9, 30/7, 30/10 40.00% 04.02.2018 Statoil Petroleum AS

Pl585 6406/7&8 100.00% 04.02.2018 Total E&P norge AS

Pl618 1/2,3,5,6&9 60.00% 03.02.2019 Total E&P norge AS

Pl619 1/3,6&9 50.00% 03.02.2020 Total E&P norge AS

Pl627 25/5,6,8&9 40.00% 03.02.2019 Total E&P norge AS

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assess-ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess-ments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, ass well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

oPinion. In our opinion, the financial state-ments of Total E&P Norge AS have been prepared in accordance with laws and regula-tions and present fairly, in all material respects, the financial position of the Company as of 31 December 2012 and its financial perfor-mance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway. Report on other legal and regulatory requirements.

rePort on otHer LeGaL anD reGULatorY reQUirements

oPinion oF tHe BoarD oF Directors’ rePort. Based on our audit of the financial state-ments as described above, it is our opinion that the information presented in the Direc-tors’ report concerning the financial state-ments, the going concern assumption and the proposal for the allocation of the result is consistent with the financial statements and complies with the law and regulations.

oPinion on reGistration anD DocUmentation. Based on our audit of the financial statements as descried above, and control procedures we have considered necessary in accord-ance with the international standard on assurance engagements (ISAE) 3000, “Assurance Engagements Other than Audits or Reviews of Historical Financial Information”, it is our opinion that the Board of Directors and Chief Executive Officer have fulfilled their duty to properly record and document the Company’s accounting information as required by law and generally accepted bookkeeping practice in Norway.

Stavanger, 5 March 2013ERNST & YOUNG AS

Jostein JohannessenState Authorised Public Accountant

(This translation from Norwegian has been made for information purposes only.)

rePort on tHe FinanciaL statements

We have audited the accompanying finan-cial statements of Total E&P Norge AS, which comprise the balance sheet as at 31 December 2012, the statements of income and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.

tHe BoarD oF Directors’ anD cHieF eXecUtiVe oFFicer’s resPonsiBiLitY For tHe FinanciaL statements. The Board of Directors and Chief Executive Officer are responsible for the preparation and fair presentation of these financial statements in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for such internal control as the Board of Directors and Chief Executive Officer determine is necessary to enable the preparation of financial statements that are free fro material misstatement, whether due to fraud or error.

aUDitor’s resPonsiBiLitY. Our responsibility is to express an opinion on these financial statements based on our audit. We con-ducted our audit in accordance with laws, regulation, and auditing standards and practices generally accepted in Norway, including International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

aUDitor’s rePort

Design: Illustrations: VisCo CG / Total E&P Norge (page 4 and 6)

and Headspin / Total E&P Norge (page 14).

Paper: Arctic Volume High White (150/250g)

Circulation: 400 (English) / 600 (Norwegian)

Print: HBO AS

gEoscIENcEs dEvElopMENT sTudIEs & plANNINg

hsEq

hIld pRojEcT

ExTERNAl AFFAIRs

opERATIoNs & pRojEcTs

FINANcE/TAx/IT

MANAgINg dIREcToR

coMMERcIAl

huM. REs. & AdM.

Bu gREATER EkoFIsk

lEgAl

Bu sTAToIl opERATEd

NEw REsERvEs gRowTh

MARkETINg & TRANspoRTATIoN

dENIs FRANcoIs

pER gRINdE

BjøRN oscAR TvETERås

FoudIlchEglIBI

BjøRN ARNE NæsgAARd

ToRE Bø

cAThERINE vAN dER lINdEN

MARTIN TIFFEN

jARlE MAdsEN

sIgMuNd pETTERsEN

johN cATlow

ARIld kvANvIk jøRgENsEN

RoARARBRIgTsEN

jEAN-pAul ThIRIET

kRIsTIN skoFTElANd

oRgANIsATIoN

ouR INTEREsTs oN ThE NoRwEgIAN coNTINENTAl shElF

visund

trollhuldra

tune

heimdal

vale

gimle

kvitebjørn

oseberg

Pl554 & 554b

martin linge*

atla

Pl627

Pl685

mikkel

tyrihans

morvin

kristin

snøhvit

åsgard

victoria (Pl211)

alve nord (Pl127)

norvarg (Pl535)

Pl585

vilje

glitne

sleiPner

ekofisk

eldfiskembla

Pl618/619Pl661/662

skirne

islay

••••

•••••••••

•••••••••••••••

ToTal E&P NorgE oPerated fields

ToTal E&P NorgE oPerated licences

ToTal E&P NorgE Partner oPerated fields

total e&P norgeownershiP in Production fieldsand main oPerated Production licenceson the ncs

total e&P norgeownershiP (not shown on map) share (%) oPerator

PiPelinesoil

NorPiPE (oil) 34.93000 CoNoCoPHilliPS

oSEbErg TraNSPorT (oTS) 12.98000 STaToil

froSTPiPE* 36.25000 ToTal E&P NorgE

Troll oil i 3.70687 STaToil

Troll oil ii 3.70687 STaToil

SlEiPNEr CoNdENSaTE 10.00000 STaToil

Plants / terminalsgas

ETzEl gaS lagEr (ETzEl) 1.07910 STaToil

oil

STurE (STurE) 12.98000 STaToil

VESTProSESS (MoNgSTad) 5.00000 STaToil

aT 01.05.2013

*frostpipe is no longer in operation, but is kept

fields in Production share (%) oPerator

EKofiSK 39.90 CoNoCoPHilliPS

EldfiSK 39.90 CoNoCoPHilliPS

EMbla 39.90 CoNoCoPHilliPS

giMlE 4.90 STaToil

gliTNE 21.80 STaToil

gugNE 10.00 STaToil

HEiMdal 16.76 STaToil

Huldra 24.33 STaToil

iSlay 100.00* ToTal E&P NorgE

KriSTiN 6.00 STaToil

KViTEbJØrN 5.00 STaToil

MiKKEl 7.65 STaToil

MorViN 6.00 STaToil

oSEbErg 14.70 STaToil

oSEbErg EaST 14.70 STaToil

fields in Production share (%) oPerator

oSEbErg SouTH 14.70 STaToil

SKirNE 40.00 ToTal E&P NorgE

SlEiPNEr EaST 10.00 STaToil

SlEiPNEr WEST/ 9.41 STaToil

alPHa NorTH

SNØHViT 18.40 STaToil

Tor 48.20 CoNoCoPHilliPS

Troll 3.69 STaToil

TuNE 10.00 STaToil

TyriHaNS 23.18 STaToil

ValE 24.24 STaToil

VilJE 24.24 STaToil

ViSuNd 7.70 STaToil

ÅSgard 7.68 STaToil

*norwegian share (5.51% of the total field)

*formerly hild

n o r w e g i a n s e a

b a r e n t s s e a

n o r t h s e a

stavanger

bergen

aberdeen

st. fergus

harstad

hammer-fest

tromsø

trondheim

oslo

www.total.no

stavanger(main office)

TOTAL E&P NORGE AS

Postal addressP.O. Box 168 N-4001 Stavanger

Visiting addressFinnestadveien 44, DusavikN-4029 Stavanger

telephone +47 51 50 30 00

osLo

TOTAL E&P NORGE AS

Postal addressP.O. Box 1361, VikaN-0113 Oslo

Visiting addressHaakon VIIs gate 1N-0161 Oslo

telephone+47 22 01 95 00

Harstad

TOTAL E&P NORGE AS

Postal addressP.O. Box 63N-9481 Harstad

Visiting addressTorvet 2N-9405 Harstad

telephone +47 77 28 21 50