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2016-08-29

Det norske oljeselskap ASA: Increasing the value of Johan Sverdrup

Trondheim, 29 August 2016

Det norske oljeselskap ASA ("Det norske"), along with the partners in
the Johan Sverdrup development, is pleased to provide an update on
the project.

Since the plan for development and operation (PDO) of the Johan
Sverdrup field was approved by Norwegian authorities, there has been
a positive development of investment costs.

The first phase is currently estimated at NOK 99 billion (Capex
numbers in nominal terms based on project currency), a reduction of
NOK 24 billion since the PDO was submitted. The present break-even is
reduced to below USD 25 per barrel for phase 1.

The estimate for the full-field investment has been improved from a
range of NOK 170 - 220 billion in 2015 to a current estimate of NOK
140 - 170 billion (2016 value).

The improvements made for the Johan Sverdrup full-field development
are mainly a result of optimisation and simplification of the
development concept for future phases, in close cooperation with the
supplier industry.

Phase 1 production capacity is currently estimated at 440,000 barrels
of oil per day. The PDO originally estimated the phase 1 production
capacity to be between 315,000 - 380,000 barrels of oil per day. Full
production capacity on full field is expected to be 660.000 barrels
of oil per day. The PDO estimated full production from Johan Sverdrup
to be 550,000 - 650,000 barrels of oil per day.

Since the PDO for the first phase was submitted, the range of the
Operator's full-field resource estimate has improved from 1.7-3.0 to
1.9-3.0 billion barrels of oil equivalents. This update does not
result in a revision of Det norske's reserves in Johan Sverdrup,
estimated to be 303 million barrels of oil equivalents (P50) in 2015.
The company's reserves will be reassessed at year-end in connection
with the annual reserve certification process.

The capacity increase, together with improved reserve estimate and
investment costs, has helped reduce the break-even for the full-field
development of Johan Sverdrup to below USD 30 per barrel.

The PDO for phase 1 of Johan Sverdrup originally called for project
pre-sanction (DG2) of future phases in 2016 and investment decision
at the end of 2017. According to an updated plan the project
pre-sanction will be made in the first half of 2017, and a final
investment decision will be reached and PDO will be submitted in the
second half of 2018. Full-field production start will be 2022, as
originally planned.

Partners in Johan Sverdrup:
Statoil 40,0267% (operator)
Lundin Norway 22,6%
Petoro 17,36%
Det norske oljeselskap 11,5733%
Maersk Oil 8,44%

Contacts:
Investor contact: Jonas Gamre, VP Investor Relations, tel.: +47 971 18
292

Media contact: Rolf Jarle Brøske, SVP Communications, tel.: +47 911 12
475

About Det norske:
Det norske is a fully-fledged E&P company with exploration,
development and production activities on the Norwegian Continental
Shelf (NCS). We are building one of Europe's largest independent E&P
companies.

Det norske is the operator of the producing Alvheim field and for the
Ivar Aasen field development. In addition, the company is partner in
the Johan Sverdrup field. Det norske has an active exploration
programme on the Norwegian shelf and an ambitious strategy for
growth.

Det norske's headquarters are located in Trondheim, with branch
offices in Stavanger, Oslo and Harstad. Det norske is listed on Oslo
Børs with ticker `DETNOR'. More about Det norske at
www.detnor.no/en/.

This information is subject to disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.

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http://news.cision.com/det-norske-oljeselskap-asa/r/increasing-the-value...
http://mb.cision.com/Main/1629/2066869/554462.pdf

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