Maersk Olie og Gas A/S

Transcription

1 CVR-IMo Approved at the General Assembly: 27 April 2015 Chairman of the meeting: Majbritt Perotti Carlson

2 Masrsk Olie og Gas A/S Content Page Company information List of companies Directors' Report Management's Statement Independent Auditors' Report Accounting policies Income statement - Group Balance sheet - Group Cash Flow statement - Group Income statement - Parent Balance sheet - Parent Notes

3 Msersk Olie og Gas A/S Company information Maersk Olie og Gas A/S Esplanaden Copenhagen K CVR-No.: Date of incorporation: Registered office: Financial year: September 1962 Copenhagen 01 January December 2014 Board of Directors Nils Smedegaard Andersen (Chairman) Michael Pram Rasmussen Trond Westlie Management Jakob Thomasen Auditors KPMG Statsautoriseret Revisionspartnerselskab Godkendt Revisionspartnerselskab Amerika Plads l<0benhavn 0 3

4 mp Msersk Olie og Gas A/S List of Companies MaerskOlie og Gas A/S is a wholly-owned subsidiary of A.P. M0ller- Maersk A/S (Copenhagen) and is included in the accounts for the A.P. Moller - Maersk Group. Maersk Olie og Gas A/S is the parent company for the following directly or indirectly subsidiaries (100% owned if not otherwise indicated): Maersk Oil Qatar A/S, Copenhagen Maersk Olie, Algeriet A/S, Copenhagen Maersk Oil Colombia A/S, Copenhagen Maersk Oil Angola A/S, Copenhagen Maersk Oil Angola Holdings A/S, Copenhagen Maersk Oil Angola Sixteen Holdings Ltd., British Virgin Islands Maersk Oil Angola Sixteen Ltd., British Virgin Islands Maersk Energy Marketing A/S, Copenhagen Maersk Oil Kalaallit Nunaat A/S, Copenhagen Maersk Oil Kurdistan A/S, Copenhagen Maersk Oil Kurdistan Piramagrun Holdings A/S, Copenhagen Maersk Oil Kurdistan Piramagrun A/S, Copenhagen Maersk Oil Kurdistan Qala Dze Holdings A/S, Copenhagen Maersk Oil Kurdistan Qala Dze A/S, Copenhagen Maersk Oil Middle East A/S, Copenhagen Maersk Oil Norway AS, Norway Maersk Oil Mexico S.DE R.L DE C.V., Mexico (owned by Maersk Olie og Gas A/S (99.99%) and Maersk Mexico, S.A. de C.V. (0.01%)) Maersk Oil Turkmenistan B.V., The Netherlands Maersk Oil Three PL B.V., The Netherlands Maersk Energia Ltda., Brazil (owned by Maersk Oil Three PL B.V (99.99%) and Maersk Olie og Gas A/S (0.01% quotas) 4

5 Maersk Oil Brasil Ltdav Brazil (owned by Maersk Olie og Gas A/S (99.99%) and Apomar Participagoes Ltda. (0.01%). Maersk Oil Kazakhstan GmbH., Germany Maersk Oil Houston Inc., USA Maersk Oil Gulf of Mexico One LLC, USA Maersk Oil Gulf of Mexico Two LLC, USA Maersk Oil Gulf of Mexico Three LLC, USA Maersk Oil Gulf of Mexico Four LLC, USA Maersk Energy UK Ltd., United Kingdom Maersk Oil GB Ltd., United Kingdom Maersk Oil UK Ltd., United Kingdom Maersk Oil North Sea UK Ltd., United Kingdom Maersk Oil Exploration UK Ltd., United Kingdom Maersk Oil Gryphon Ltd., United Kingdom Maersk Oil Resources UK Ltd., United Kingdom CNS (E&P) Ltd., United Kingdom Maersk Oil Kazakhstan E&P Ltd., United Kingdom 5

6 Directors' Report The company is a wholly-owned subsidiary of A.P. M0ller - Maersk A/S. Maersk Olie og Gas A/S (Maersk Oil) participates through subsidiaries in exploration and production of oil and gas outside Denmark and is operator for Dansk Undergrunds Consortium's (DUC's) activities in the Danish North Sea shows a loss of USD -1,424 million, which is lower than expectations and lower than the profit for 2013 (USD 295 million). The result was USD 1,719 million lower than 2013 due to impairment in Brazil of USD 1,706 million. A higher entitlement production 187 thousand boepd (165 thousand boepd) offset by a lower average oil price of USD 99 per barrel (USD 109) had a positive impact on the result. Key figures for the Maersk Olie og Gas Group are as follows: USD million Income statement: Revenue 7,645 7,014 7,258 8,751 7,038 Profit before financial items and tax 202 2,244 2,775 4,588 3,277 Financial items, net (67) (56) (1) (75) (53) Profit for the year after tax (1,424) 295 1, Balance sheet: Total assets 11,939 12,635 12,253 11,374 8,595 Investments in property, plant and equipment 2,312 1,726 1,604 1,092 1,056 Equity 6,561 8,015 7,713 6,249 5,266 lash flow from operating activities was USD 1.8 billion (USD 2.3 billion) 6 mop

7 In 2014, Maersk Oil invested USD 2.0 billion in production facilities etc., compared to USD 1.6 billion in 2013, primarily in Qatar, Algeria, UK, Kazakhstan, Angola, Norway, Kurdistan and the US. In addition to the impairment in Brazil, there were also impairments in the Maersk Energy UK Group of USD 187 million after tax. For 2015 Maersk Oil expects a loss although not at the level of For 2015 Maersk Oil expects a higher average production level than in 2014 at an average oil price of USD 55 per barrel. Exploration costs are expected around USD 0.7 billion, in line with 2014 (0.7 billion). The outlook for 2015 will to a large extent depend on fluctuations in oil prices. Maersk Oil continuously develops the production process using the best and safest technologies. Furthermore, Maersk Oil seeks to make use of environmentally friendly and energy efficient solutions to reduce negative impact on the environment. The lost time injury frequency (LT1F) for 2014 was 0.73 per million working hours compared to 0.89 per million working hours in Maersk Oil works focused on eliminating incidents and has set a target of zero incidents. Social responsibility is important for Maersk Oil's business and Maersk Oil continues its activities in line with the parent company A.P. M0ller - Maersk A/S' Sustainability Strategy. For more information reference is made to the parent company A.P. M0ller - Maersk A/S' sustainability report on the website: 7 MW

8 The Board believes that its members should be elected on the basis of their combined qualifications and at the same time recognises the advantages of a board comprising a wide range of backgrounds such as global experience, style, culture and gender. On the basis of this ambition the Board has in 2013 defined a target to increase the share of the under-represented gender on the Board, to account for at least 25% of the shareholder-appointed Board members, no later than May As of 31 December, 2014 none of the shareholder-appointed Board members are women. In 2013 a group policy was adopted with the aim to increase the share of the under-represented gender on the company's other management levels: In accordance with this policy Maersk Oil has taken steps to look into how the company can attract qualified women to relevant management positions. In addition, this is a focus area when identifying candidates to key positions. Production Qatar Daily entitlement production in Qatar was 102 thousand boepd (99 thousand boepd in 2013). The increase was due to higher cost recovery following the decline in oil price. United Kingdom In the UK, entitlement production was 41 thousand boepd (30 thousand boepd in 2013) positively affected by a full year of production from the Gryphon FPSO following the reinstatement mid Golden Eagle coming on-stream in Q and increased performance of the existing assets. 8 mp

9 Algeria Algeria experienced an upward trend in the entitlement oil production reaching 37 thousand boepd (28 thousand boepd in 2013) benefitting from the El Merk Field producing for a full calendar year. This offsets the decline in production from mature assets. Brazil Maersk Oil has non-operated production in the Polvo field and the Group's entitlement share of the production was 4 thousand barrels of oil per day during 2014 (5 thousand in 2013). Kazakhstan The Group's entitlement share of the oil production increased due to the drilling of new wells to a level of 4 thousand boepd during 2014 (3 thousand boepd in 2013). In the US Gulf of Mexico, the Jack deepwater field came on-stream at the end of Development In Angola, tender bids for the Chissonga field development plan have been received and project sanction decision is expected in In Kazakhstan the Dunga Phase II project is progressing with 150 wells out of 198 planned wells completed and gradual ramp up of production commenced in Q Successful appraisal activities continued to delineate the Johan Sverdrup field in Norway, and the project is progressing well. A development plan was submitted to the authorities in February First oil from Johan Sverdrup is expected late imp

10 Msersk Olie og Gas A/S In Qatar the USD 1.5bn Al Shaheen FDP2012 development plan continued and the first 22 of 50 planned wells has been completed. The project continued according to plan and preparations for the next major development step is progressing with Qatar Petroleum. In UK, the Culzean gas project was progressed towards submission of a development plan in The combined Flyndre / Cawdor project, UK was appproved by authorities in Q and the project continues towards first oil in In Brazil, Maersk Oil sees potential for development in the fields Wahoo and Itaipu, but the operators have not yet presented development plans. In the US Gulf of Mexico a second stage for the Jack field is planned for later production start-up. In the Buckskin field, appraisal drilling was completed and together with partners a development plan is being assessed. Exploration Exploration and appraisal activities are in progress, mainly in: The North Sea (in Denmark as operator for DUC and in the UK as well as in Norway) The Middle East (Qatar, Iraq/Kurdistan) Asia (Kazakhstan) US Gulf of Mexico Maersk Oil completed 14 exploration/appraisal wells compared to 25 in mr

11 Masrsk Olie og Gas A/S The wells included successful wells in the UK, US Gulf of Mexico and Norway. 11 wells were assessed not to be commercially viable and the exploration drilling result for the year as a whole was below expectation. In Greenland, an addendum to the license agreement was signed in November 2014, giving a two year extension (until December 31, 2016) with no additional commitments. In Kurdistan, Maersk Oil has interest in the Sarsang licence, where the operator has declared the Swara Tika discovery commercial. Exploration in the Piramagrun and Qala Daz licences have so far been unsuccessful. In Norway, Maersk Oil participated in drilling one successful well outlining the Johan Sverdrup field at expectation. In the UK, three exploration wells were completed. With the Marconi well, being the most promising, one still under evaluation and one well deemed dry. Five additional licenses were awarded to Maersk Oil UK in the 28th License round. In the US, Maersk Oil has acquired protection acreage around Buckskin in order to align with the partnership. More information on exploration licences and permits is available at maerskoii.com 11 m

12 Operator Activities in Denmark Maersk Oil is operator for Dansk Undergrunds Consortium (DUC). In 2014, production of crude oil from DUC's fields in the Danish part of the North Sea reached an average of 140 thousand barrels of oil per day (bopd), 10% lower than in 2013 (156 thousand bopd). The total gas production in 2014 was 3.6 billion m3 or on average 63 thousand boepd, 10% lower than in 2013 (70 thousand boepd). The lower oil and gas production was caused by decreasing production from mature fields. The level of investments in the Danish sector of the North Sea is still significant and the DUC investments in the field development amounted to USD 0.6 billion in 2014 which is above the level of 2013 (USD 0.4 billon). During 2014, 2 new development wells were completed (4 wells in 2013). In addition to production activities, Maersk Oil also conducts exploration activities and completed two wells in Risks and uncertainties Maersk Oil is subject to a variety of risks which derive from the nature of the oil and gas production and exploration activities. Material accounting estimates relate to valuation of non-current assets including determination of amortisation and depreciation profiles, and calculation of provisions to cover abandonment obligations and claims, etc. Maersk Oil's future is dependent upon success in finding or acquiring and developing oil and gas reserves. Further, strategic, operational, compliance, financial and emerging risks are monitored through a structured approach including systematic identification, assessment and mitigation of the risks. 12 mp

13 Msersk Olie og Gas A/S Management's Statement The Board of Directors and Executive Board have today discussed and approved the annual report of Maersk Olie og Gas A/S for The annual report for 2014 of Maersk Olie og Gas A/S has been prepared in accordance with Danish Financial Statements Act and in our opinion gives a true and fair view of the Group's and the Company's assets, liabilities and the financial position at 31 December 2014 and of the results of the Group's and the Company's operations and the consolidated cash flow for the financial year In our opinion the Directors' report includes a fair review of the development in and the result of the Group's and the Company's operations and financial conditions, the result for the year, consolidated cash flows and financial position as well as a description of the most significant risks and uncertainty factors that the Group and the Company face. We recommend that the annual report be approved at the Annual General Meeting. Nils Smedegaard Andersen (Vice Chairman) Trond Westlie 13 tm

14 Independent auditors' report To the shareholder of Maersk Olie og Gas A/S Independent auditors' report on the consolidated financial statements and the parent company We have audited the consolidated financial statements and the parent company financial statements of Maersk Olie og Gas A/S for the financial year 1 January - 31 December The consolidated financial statements and the parent company financial statements comprise accounting policies, income statement, balance sheet and notes for the Group as well as for the parent company and consolidated cash flow statement. The consolidated financial statements and the parent company financial statements are prepared in accordance with the Danish Financial Statements Act. Management's responsibility for the consolidated financial statements and the parent company Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control that Management determines is necessary to enable the preparation of consolidated financial statements and parent company financial statements that are free from material misstatement, whether due to fraud or error. Auditors' responsibility Our responsibility is to express an opinion on the consolidated financial statements and the parent company financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the consolidated financial statements and the parent company financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and the parent company financial statements. The procedures selected depend on the auditors' judgement, including the assessment of the risks of material misstatement of the consolidated financial statements and the parent company financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company's preparation of consolidated financial statements and parent company financial statements that give a true and fair view 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, as well as evaluating the overall presentation of the consolidated financial statements and the parent company financial statements. 14

15 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit has not resulted in any qualification. Opinion In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the parent company's financial position at 31 December 2014 and of the results of the Group's and the parent company's operations and consolidated cash flows for the financial year 1 January - 31 December 2014 in accordance with the Danish Financial Statements Act. Statement on the Directors' report Pursuant to the Danish Financial Statements Act, we have read the Directors' report. We have not performed any further procedures in addition to the audit of the consolidated financial statements and the parent company financial statements. On this basis, it is our opinion that the information provided in the Directors' report is consistent with the consolidated financial statements and the parent company financial statements. Copenhagen, 20 February 2015 KPMG Statsautoriseret Revisionspartnerselskab Henrik O. Larsen State Authorised Public Accountant 15 imp

16 Accounting Policies The Annual Report for 2014 of Maersk Olie og Gas A/S has been prepared in accordance with the provisions of the Danish Financial Statements Act applicable to large (class C) companies. The accounting policies for the financial statements are unchanged from last year. Maersk Olie og Gas A/S has with reference to the Danish Financial Statements Act 86 section 4 refrained from preparing cash flow statement for the parent company. Presentation, classification and designations in the income statement and balance sheet have been adjusted to the special nature of the company. Consolidated Accounts The consolidated financial statements comprise the entities controlled by Maarsk Olie og Gas A/S. The consolidated financial statements are prepared by combining the financial statements of the parent company and the individual subsidiaries. Intercompany income and expenses, intercompany balances and dividends are eliminated. For acquired companies the assets and liabilities are measured at fair value at the date control was achieved using the acquisition method. Identifiable intangible fixed assets are recognised if they arise from a contractual right or can otherwise be separately identified. The difference between the fair value of the acquisition cost and the fair value of acquired identifiable net assets is recognised as goodwill under intangible fixed assets. Foreign Currency The functional currency is USD. The Annual Report is presented in USD, in accordance with provision 16 of the Danish Financial Statements Act. The exchange rate of USD to DKK was at 31 December 2014 (2013: DKK ) 16

17 Msersk Olie og Gas A/S Monetary assets and liabilities in currencies other than USD are translated at the exchange rate at the balance sheet date. Transactions in currencies other than USD are translated at the exchange rate prevailing at the date of the transaction. Exchange rate gains and losses are included in the income statement as financial income and expenses. Derivatives Derivatives are recognised on the trading date and measured at fair value and included in other receivables (positive fair value) or other debt (negative fair value). Changes to the value of derivatives used to hedge the value of recognised financial assets or liabilities are recognised in the income statement together with the changes in the value of the hedged assets or liabilities. Changes to the value of derivatives used to hedge future transactions are recognised directly in equity until the hedged transactions are realised at which time value changes are included in the hedged transactions. Derivatives classified as held for trading are recognised at fair value. Any change in fair value for oil price derivatives is recognised in the income statement under other income/costs. Based on the use of the equity method, derivatives in the parent company used to hedge transactions in subsidiaries are in the parent company's annual report recognised consistently with the recognition on group level. The Income Statement Revenue comprises the value of the company's (Group's) share of the oil and gas production as well as oil traded. If the company (Group) sells more than its share of the produced oil (overlift) this is recognised at sales price in the balance sheet under "Deferred income". If the company (Group) sells less than its share of the produced oil (underlift) this is recognised at cost price under "Prepayments". In agreements where tax is settled in oil, this tax is recognised both as revenue and 17 mp

18 Other operating income comprises operator fee, gain on derivatives held for trading and gains by sale of licence shares, etc. In the parent company the operating income consists of services provided to subsidiaries as well as operator fee. Other operating cost comprise loss on derivatives held for trading. Production expenses comprise costs incurred in generating the revenue for the year including purchase of oil. Exploration expenses are recognised in the income statement as they are incurred. Expenses for initial surveys incurred before acquisition of licence for hydrocarbon extraction are also included in the income statement as they are incurred. Financial items comprise interest and currency exchange rate gains and losses from translation of cash and debt in foreign currencies other than USD. The company and its Danish subsidiaries are jointly taxed with a number of Danish companies in the A.P. Moller - Maersk Group. Tax on profit for the year includes the amount estimated to be paid for the year as well as adjustments regarding previous years and change in deferred tax. Provision for deferred tax is made on temporary differences between the accounting and tax values of assets and liabilities. Deferred tax on temporary differences which at the time of the transaction does not affect the financial result or the taxable income is not recognised. Deferred tax assets are only recognised to the extent that it is probable that they can be utilised against future taxable income. The Balance Sheet Intangible assets are measured at cost less accumulated amortisation and impairment losses. Amortisation is calculated on a straight-line basis over the estimated useful lives of the assets. Intangible assets in connection with acquired oil resources (concession rights, etc.) are amortised from commencement of production and over the fields' expected production periods of up to 20 18

19 Msersk Olie og Gas A/S years. Acquired exploration rights are amortised from the date of acquisition for a period up to five years. IT software is amortised over a useful life of 3-5 years. Tangible fixed assets are measured at cost less accumulated depreciation and impairments. The cost price of production facilities etc. comprises direct and indirect costs for appraisal and production wells and production equipment, etc. for fields considered commercial. Cost includes the net present value of estimated costs of abandonment, removal and restoration. The cost of an asset is divided into separate components which are depreciated separately if the useful lives of the individual components differ. Depreciation on production facilities etc. is made over the expected production period/economic life determined individually for each development plan. For oil production facilities including facilities under construction, where oil is received as payment for the investment (cost oil), depreciation takes place concurrently with the receipt of cost oil. Fixtures and operating equipment are depreciated within three years. Depreciation periods and residual values for intangible and tangible fixed assets are re-evaluated annually. Impairment losses are recognised when the carrying amount of an asset or a cash-generating unit exceeds the higher of the estimated value in use and fair value less costs to sell. Investments in subsidiaries are recognised and valued at the company's share of the subsidiaries' equity according to the equity method. In the income statement the result from the subsidiaries is recognised after tax. Investments in associated companies are recognised as the Group's share of the equity value measured according to the Group's accounting policies. In the income statement the result from the associated companies is recognised after tax. 19 MOP

20 Inventories are measured at cost, following the FIFO method. Write-down is made to net realisable value if lower. The cost of finished goods includes direct and indirect production costs. Receivables are measured at nominal value which in all material respects corresponds to amortised cost. Write-down is made for anticipated losses on an individual basis. Prepayments recognised under assets include prepaid expenses. Dividend for distribution regarding the financial year is included as part of the equity. Provisions are recognised when the Group has an existing legal or actual obligation and includes actuarial calculated pension obligations, deferred tax and provision for abandonment of oil fields, etc. Provisions are recognised on the basis of best estimates and considering discounting when the time element is significant. Deferred income regarding future years is recognised under liabilities. Cash Flow Statement The cash flow statement shows the Group's cash flow for the year divided into cash flow from operations, cash flow used for investments and cash flow from financing activities. Liquid funds etc. include cash and bank debt as well as interest-bearing on demand deposits with affiliated companies. 20 mftp

21 M/ERSK OLIE OG GAS GROUP INCOME STATEMENT FOR 2014 USD 1,000 Note Revenue 7,645,324 7,013,918 Other operating income 213, ,367 Other operating cost 146,405 7,712,701 7,305,285 2./3. Operating expenses 3,318,535 2,433,276 Gross Profit 4,394,166 4,872, Exploration expenses 723,258 1,133, Depreciation and impairment 3,472,763 1,494,038 Gain on sale of tangible and intangible assets 4,136 Profit before financial items and tax 202,280 2,244, Result after tax in associated companies (4,804) (41,649) 4. Financial income 52,630 30, Financial expenses 119,358 86,910 Profit before tax 130,748 2,146, Tax on profit for the year 1,554,838 1,851,187 Profit for the year (1,424,090) 295, P

22 Msersk Otie og Gas A/S IWERSK OLIE OG GAS GROUP BALANCE SHEET AT Note ASSETS NON-CURRENT ASSETS Intangible assets USD 1,000 Software etc. 14,747 27,520 CO2 emission permits 7,011 6,148 Oil rights 1,466,778 3,108,628 Property, plant and equipment 1,488,536 3,142,296 Production facilities etc. 4,013,467 2,973,011 Production facilities etc. under construction 1,651,658 1,944,352 Financial assets 5,665,125 4,917,363 Investments in associated companies - 197,332 Receivables Group companies 152, ,057 Securities Long term deposits 43, , ,389 TOTAL NON-CURRENT ASSETS 7,350,210 8,408,048 CURRENT ASSETS Inventories 411, ,358 Deferred tax asset 146, ,382 Receivables Receivables from sale of oil and gas 428, ,232 Receivables Group companies 2,857,210 2,354,556 Receivables Joint Venture partners 252, ,786 Other receivables including tax 240, ,511 Prepayments 147, ,782 3,926,526 3,565,867 Cash 104, ,960 TOTAL CURRENT ASSETS 4,589,018 4,226,567 TOTAL ASSETS 11,939,228 12,634, mp

23 M/ERSK OLIE OG GAS GROUP BALANCE SHEET AT USD 1,000 Note EQUITY AND LIABILITIES 8. EQUITY Share capital 29,925 29,925 Net revaluation according to the equity method - - Retained earnings 6,531,538 7,984,590 PROVISIONS 6,561,463 8,014,515 Pensions and similar provisions 5, Deferred tax 430, , Other provisions 1,961,144 1,484,921 LONG-TERM LIABILITIES OTHER THAN PROVISIONS 2,397,280 2,266, Loan from group companies 500, ,000 SHORT-TERM LIABILITIES OTHER THAN PROVISIONS 500, ,000 Trade payables 1,183,906 1,348,642 Loan from group companies 802, ,301 Payables to group companies 170,131 82,563 Tax 32,302 49,227 Other payables 255, ,231 Deferred income 35,476 42,763 2,480,485 2,153,727 TOTAL LIABILITIES 2,980,485 2,353,727 TOTAL LIABILITIES, PROVISIONS AND EQUITY 11,939,228 12,634, Contingencies etc. 13. Related parties 23 mp

24 M/ERSK OLIE OG GAS GROUP CASH FLOW STATEMENT FOR 2014 USD 1, Profit before financial items and tax 202,280 2,244,298 Depreciation and impairments Other non-cash items Change in working capital etc. 3,472,763 (4,592) (39,956) 1,494,038 28,673 (37,417) Cash flow from operating activities before financial items 3,630,495 3,729,592 Financial income 53,953 20,224 Financial expenses Taxes paid (79,366) (1,834,385) (18,152) (1,439,785) Cash flow from operating activities 1,770,697 2,291,879 Purchase of intangible assets and property, plant and equipment and purchase of subsidiaries and activities (1,963,644) (1,635,562) Sale of intangible assets and property, plant and equipment 5, Cash flow used for investing activities (1,958,188) (1,635,297) Proceeds from new loans 578, ,373 Repayment of loans (14,224) (596,396) Cash flow from financing activities 564,340 (384,023) Net cash flow for the year Liquid funds etc. at 1 January Exchange rate adjustments 376,849 2,508,815 (8,993) 272,559 2,251,215 (14,959) Liquid funds etc. at 31 December 2,876,671 2,508,815 Comprising: On demand deposit with group company 2,771,968 2,231,855 Liquid funds etc. * 104, ,960 2,876,671 2,508,815 * Liquid funds etc. of tusd 104,703 includes restricted cash of tusd 23,089 per 31 December 2014 (2013: tusd 41,289). 24 MP

25 Msersk Olie og Gas A/S M/ERSK OLIE OG GAS A/S INCOME STATEMENT FOR 2014 Note USD 1, Operator's fee etc. 246, ,830 2/3. Administrative expenses 316, , Exploration expenses 57,820 55, Depreciation 1, Profit before financial items and tax (129,911) (155,564) 7. Profit after tax in subsidiaries (1,288,684) 405, Financial income 33,963 17, Financial expenses 9,429 5,879 Profit before tax (1,394,061) 261, Tax on profit for the year 30,029 (33,899) PROFIT FOR THE YEAR (1,424,090) 295,276 Proposed distribution of net profit Dividend for distribution - - Reserve for net revaluation according to the equity method (1,288,684) 405,556 Retained earnings (135,406) (110,281) (1,424,090) 295, mp

26 M/ERSK OLIE OG GAS A/S BALANCE SHEET AT USD 1,000 Note ASSETS NON-CURRENT ASSETS 6. Property, plant and equipment Fixtures, fittings, tools and equipment 5,449 2, Financial assets Investment in subsidiaries 5,060,799 7,678,337 TOTAL NON-CURRENT ASSETS 5,066,248 7,680,558 CURRENT ASSETS 10. Deferred tax asset 13,779 6,586 Receivables Receivables Group companies Receivables Joint Venture partners Other receivables Prepayments 1,703, , , ,786 24,005 6,435 6,432 3,255 1,985, ,819 Cash TOTAL CURRENT ASSETS 27,591 38,546 2,027, ,951 TOTAL ASSETS 7,093,480 8,599, mp

27 Msersk Olie og Gas A/S M/ERSK OLIE OG GAS A/S BALANCE SHEET AT USD 1,000 Note LIABILITIES AND EQUITY EQUITY Share capital 29,925 29,925 Net revaluation according to the equity method - - Retained earnings 6,531,538 7,984,590 6,561,463 8,014,515 PROVISIONS Other provisions 101,780 61, ,780 61,000 SHORT-TERM LABILITIES OTHER THAN PROVISIONS Trade payables Loans from group companies Payables to group companies Other payables 320, ,934 3, ,560 72,903 59,762 33,190 34, , ,994 TOTAL LIABILITIES TOTAL LIABILTIES, PROVISIONS AND EQUITY 430, ,994 7,093,480 8,599, Contingencies etc. 13. Related parties 27

28 Msersk Olie og Gas A/S M/ERSK OLIE OG GAS A/S Notes as at (USD 1,000) 2014 Group 2013 Parent company Note 1, Revenue Segments (eeographican Qatar United Kingdom 3,564,428 1,415,686 3,885,252 1,220,567 Algeria Kazakhstan Brazil USA Denmark 1,465, , ,509 2, ,445 7,645,324 1,155,766 98, ,361 2, ,443 7,013,918 Note 2, Staff costs Salaries Pension contribution Other social security costs 422,239 27,965 37, ,986 39,880 36, , ,415 Executive and board renumeration 2,937 2,012 2,937 2,012 Average number of employees in Maersk Olie og Gas A/S' subsidiaries 2,573 2,313 Staff costs included in the income statement for the Group are contained under the items production expenses, administrative expenses, exploration expenses and in the balance sheet under production facilities etc. in progress. The Parent Company, Maersk Olie og Gas A/S, has no employees as all those engaged are employed by Rederiet A.P. M0ller A/S. During the financial year, an average of 1,901 people were employed in Maersk Olie og Gas A/S (2013: 1,798 people). Total payroll costs amounted to USD 362 million (2013: USD 337 million). The A.P. M0ller - Maersk Group has a restricted and performance shares programme, comprising approximately 20 persons in the Maersk Olie og Gas Group including management. The transfer of restricted shares is contingent on the employee still being permanently employed and takes place when three years have passed from the time of granting. The value of the restricted shares granted in 2014 to employees in the Maersk Olie og Gas Group is estimated at approximately USD mr

29 million (2013: USD 1.0 million) which is recognized in the income Statement. The value of the performance shares granted in 2014 to employees in the Maersk Olie og Gas Group is estimated at approximately USD 2.8 million (2013: USD 0.0 million). Group Parent company Note 3, Administration expenses For the statutory auditors: KPMG, Statsautoriseret Audit Revisionspartnerselskab: Other assurance services 2 6 Tax and VAT advisory services 26 3, ,660 Other services KPMGincl. Audit 1,352 1, network firms: Other assurance services Tax and VAT ,660 advisory services Other services 254 1, Group Parent company Note 4, Financial income Interest received 5,360 7, Interest received from group companies 47,270 23,481 33, Exchange rate adjustments etc. _ 16,009 52,630 30,724 33,963 17, mfi

30 Note 5, Financial expenses Interest paid 159 8, Interest paid to group companies 38,826 21,184 2,297 5,874 Other financial expenses 38,123 33, Exchange rate adjustments etc. 42,249 23,936 6, ,358 86,910 9,429 5,879 Note 6, Intangible/tangible assets Group COz Production Production facilities etc. Software Emission facilities, under USD 1,000 etc. Permits Oil rights etc. construction Cost at ,237 6,148 7,330,959 15,019,971 1,944,351 Additions during the year 4, , ,754 1,955,901 Disposals during the year - - (5,777) (72,481) - Transferred ,214,049 (2,214,049) Cost price ,974 7,011 7,576,013 17,517,293 1,686,203 Depreciation and impairment losses at ,717-4,222,331 12,046,960 - Disposals during the year - - (5,296) (71,643) - Depreciation and amortisation for the year 17, ,332 1,110,999 - Impairments for the year - - 1,755, ,510 34,545 Transferred Depreciation, amortisation and Impairments at ,227-6,109,235 13,503,826 34,545 Carrying amount ,747 7,011 1,466,778 4,013,467 1,651,658 Ownership of fixed assets in Qatar at a carrying amount of total USD 676 million (2013; USD 621 million) is being transferred to the state-owned oil company, Qatar Petroleum when the investment has been recovered by the earnings from the production of hydrocarbons or at the time of termination of the concession agreement. The company has the right of use during the concession period. Tangible assets in Algeria with the right of use are included with at a carrying amount of total USD 542 million (2013: USD 564 million). The consortium maintains the right of use until termination of the concession. 30 Mtff

31 Msersk Olie og Gas A/S Note 6, Intangible/tangible assets (continued) Parent company 2014 USD 1,000 Fixtures, fittings, tools and equipment Cost at Additions during the year Disposals during the year 3,598 4,626 (553) Cost price ,671 Depreciation and impairments at Disposals during the year Depreciation and impairments during the year 1,377 (553) 1,398 Depreciation and impairments at ,222 Carrying amount ,449 Note 7, Financial assets Group 2014 Shares in associated companies Parent company 2014 Shares in subsidiaries Cost at Additions during the year Reclassification Divestment during the year 285,339 (285,339) 10,678, ,740 Cost price ,966,109 Value adjustments at Reclassification Divestment during the year Share of subsidiaries / associated companies profit after tax Dividend (88,007) (4,804) 92,811 (3,000,032) (1,288,684) (1,616,595) Value adjustments at (5,905,311) Carrying amount ,060,799 31

32 Msersk Olie og Gas A/S In 2014 the shares in HKN Energy Ltd (30%), were converted to a direct 18% interest in the Sarsang license. A list of subsidiaries and associated companies is set out on pages 4 and 5 of the annual report to which reference is made. Note 8, Equity Group Parent company Share capital 29,925 29,925 Net revaluation according to the equity method Net revaluation at Profit for the year (1,288,684) Dividend from subsidiaries (1,616,595) Transfer from Retained earnings etc. 2,905,279 Net revaluation according to the equity method 0 Retained earnings Retained earnings at ,984,590 7,984,590 Transferred from profit for the year (1,424,090) (135,406) Dividend from subsidiaries 0 1,616,595 Transfer to Net revaluation according to the equity method 0 (2,905,279) Value adjustment of hedging instruments at (28,962) (28,962) Retained earnings at ,531,538 6,531,538 Total equity 6,561,463 6,561,463 Share capital consists of the following shares: Number Nominal, DKK Number Nominal, DKK 4 5, ,500, , ,500, , ,000, , ,000, , ,500, , ,000, ,000,000 Total nominal 173,000,000 There has been no changes to the share capital during the past five years. 32 0P

33 Meersk Olie og Gas A/S Note 9, Provisions Deferred tax mainly relates to the oil and gas interests in the British sector of the North Sea. Other provisions mainly include discounted abandonment provisions USD 1,555 million (2013: USD 1,140 million) and other obligations from group entities. Of this, USD 161 million (2013: USD 135 mio.) is expected to be due within one year. Provisions are recognised based on specific estimates and the amounts as well as timing of payments are subject to variations. Note 10, Corporate tax Tax on profit for the year, USD 1,555 million (2013:1,851 million) comprises taxes in subsidiaries, USD 1,525 million (2013: USD 1,885) and tax in the parent company, USD 30 million (2013: USD -34 million). Deferred Tax asset is USD 146 million (2013: USD 111 million), of which USD 14 million (2013: USD 7 million) is in the parent company. Unrecognised tax asset amounts to USD 905 million (2013: USD 388 million) Note 11, Long term loan The total balance of the long term loan is due within 5 years. Note 12, Contingencies Group: Contingent assets include mainly exploration costs incurred, which according to agreements will be compensated if production of hydrocarbons is carried out. As an ordinary part of both Maersk Olie og Gas A/S' and its subsidiaries' activities, field development plans are signed and drilling and production rigs are chartered. When exploration and production are undertaken abroad, each subsidiary together with its partners are jointly liable for the contractual obligations. At the end of 2014, the Maersk Olie og Gas Group has capital commitments etc. amounting to USD 2.5 bn. (2013: USD 3.7 bn.). Included in this amount is chartering of drilling and production rigs etc. USD 1.1 bn. (2013: USD 1.5 bn.), operating lease obligations USD 0.4 bn. (2013: USD 0.6 bn.) and work obligations etc. USD 1.0 bn. (2013: 1.6 bn.). 33

34 The company and Danish subsidiares are jointly taxed with Danish companies within the A.P. Moller - Maersk Group. This entails unlimited joint liability for Danish corporation taxes and withholding taxes on dividends, interests and royalties within the jointly taxed companies. A similar obligation exists for joint registration of VAT. Parent company: The parent company vouches for its subsidiaries' obligations through performance guarantees with variable periods, which may comprise considerable amounts. Note 13, Related parties Companies in the A.P. Moller - Maersk Group and the Executive board and board members of the company are related parties. Parties exercising control The company is 100% owned by A.P. M0ller - Masrsk A/S. The consolidated financial statements of the A.P. Moller - Maersk Group is available at the Company's address, Esplanaden 50,1098 Copenhagen K, Denmark. 34 mp