Slide 1: Tyra II Project Update
Tyra II Project Update 03 August 2022
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION (THE “INFORMATION MATERIAL”) HAS BEEN THIS INFORMATION MATERIAL MAY CONTAIN CERTAIN FORWARD- PRODUCED AND DELIVERED BY NORWEGIAN ENERGY COMPANY ASA LOOKING STATEMENTS RELATING TO THE BUSINESS, FINANCIAL (THE “COMPANY”). THIS INFORMATION MATERIAL DOES NOT CONSTITUTE PERFO
Slide 3: Disclaimer cont.
Disclaimer cont. BY ATTENDING OR RECEIVING THIS INFORMATION MATERIAL YOU IMPORTANT INFORMATION ACKNOWLEDGE THAT YOU WILL BE RESPONSIBLE FOR YOUR OWN AN INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL ASSESSMENT OF THE MARKET AND THE MARKET POSITION OF THE FACTORS COULD CAUSE THE ACTUAL RESULTS,
Slide 4: Executive Summary
Executive Summary
Slide 5: Tyra: First Gas Due Winter 2023 / 2024
Tyra: First Gas Due Winter 2023 / 2024 5 Project impacted by global supply chain constraints and TEG will leave Batam with offshore carry-over; however, installation of the final module remains an important milestone ▪ TEG load-out this week, with module to sail away from Batam early Sep 2022 Onshor
Slide 6: Impact on Tyra Project Schedule
Impact on Tyra Project Schedule 6 Schedule impacted by TEG carry-over and revised offshore productivity assumptions TEG Carry-Over Thousand Man Hours Revised Schedule Defined Carry-Over Revised Forecast Schedule Reflects: c. 580 Contingency (“Hidden Carry-Over”) ▪ Actual TEG Carry-Over (vs. Estimate
Slide 7: Noreco: Robust Underlying Business Model
Noreco: Robust Underlying Business Model 7 Fully-funded based on current estimates, with strong ongoing contribution from underlying business Net production mboe/d EBITDA generation USD million ▪ Strong, stable operational performance ▪ Supported by operational performance and favourable pricing ▪ F
Slide 8: Tyra Project Update
Tyra Project Update
Slide 9: Overview of the Tyra Redevelopment Project
Overview of the Tyra Redevelopment Project 9 Onshore fabrication complete and, from Oct-22, all eight modules installed offshore 2019 2020 2021 2022 Sep Jun Aug Apr Tyra WHRP TE-WHRPs TW-WHRPs & Shut-in Removal installation TEH installation & HUC started Aug Nov Tyra East WHRPs Process modules TE-WH
Slide 10: TEG: Imminent Load-Out for Early Sep-22 Sail-Away
TEG: Imminent Load-Out for Early Sep-22 Sail-Away 10 Significant milestone reached when TEG sails, with onshore fabrication phase complete Preparation Underway for Sail-Away 1 GPO Emerald Preparing for Load-Out (Batam) ▪1 Load-out: w/c 1 Aug 2022 ▪1 Sail-away: w/c 1 Sep 2022 ▪2 Sailing Time: c. six
Slide 11: TEG: Current Status
TEG: Current Status 11 Fabrication impacted by global supply chain constraints, and pragmatic focus on first gas critical workstreams has resulted in pre- (c. 30%) and post-first gas linked carry-over work Current TEG Status TEG Onshore Fabrication Phase Complete ▪ With challenging onshore progress,
Slide 12: TEG: Expected Carry-Over
TEG: Expected Carry-Over 12 First-gas critical activities to be prioritized, with related carry-over totaling c. 165,000 hours, while total carry-over related to TEG is expected to require c. 580,000 hours to liquidate Key Areas of Carry-Over Expected Carry-Over Man Hours ▪ Carry-over activities foc
Slide 13: Offshore HUC: Current Status
Offshore HUC: Current Status 13 Phased nature of offshore HUC campaign provides opportunity to improve throughout Current HUC Status Overview of HUC Progress to Date % ▪ HUC impacted by global supply chain constraints TE-WHRP ‒ Particularly with difficulties in mobilizing skilled workers Actual Prog
Slide 14: Offshore HUC: Outlook
Offshore HUC: Outlook 14 While offshore work has grown as a result of TEG carry-over and expanded base scope, TotalEnergies is now able to forecast with greater certainty based on actual experience Key Drivers of Change in Offshore HUC Scope Evolution of HUC Scope Thousand Man Hours ▪ Original HUC s
Slide 15: Forecast Budget Based on Revised Schedule (P50)
Forecast Budget Based on Revised Schedule (P50) (1) 15 Noreco expects c. USD 300 million net capex remaining to achieve Tyra first gas Key Drivers of Revised Project Cost DKKbn, Gross Revised Project Cost: P50(1) DKKbn, Gross Prior Guidance 1,7 25,7 22,0 2,0 24,0 (Noreco) 3,5 22,0 Transport / + 2,2
Slide 16: Noreco Positioning
Noreco Positioning
Slide 17: Underlying Business Continues to Perform Well
Underlying Business Continues to Perform Well 17 Strong Performance Driven by Active and Targeted Approach ✓ Underlying Business Remains Strong ▪ Outlook Supported by Commodity Price Environment ✓ Growing Organic Production ▪ H1 2022 Production of 27.5mboe/d, c. 4% higher than H1 2021 ✓ Focus on Inc
Slide 18: Clear Focus to Maintain Strong Operations
Clear Focus to Maintain Strong Operations 18 Prioritizing incremental short-term, gas-weighted production opportunities Strong Performance and Positive Outlook Overview of Near-Term Opportunity Set ▪ Continued excellent operational performance Project 2022 2023 2024 2025 ‒ Strong performance from al
Slide 19: Capital Structure Remains Robust
Capital Structure Remains Robust 19 Strong liquidity position, supported by meaningful cashflow generation ▪ Cash on balance sheet at the end of Q2 2022 of $242mm ▪ Total liquidity at the end of Q2 2022 of $342mm (including $100mm undrawn RBL capacity) Strong Liquidity ✓ Position ▪ Cash Call Securit
Slide 20: Robust Financial Outlook: Illustrative Forecasts
Robust Financial Outlook: Illustrative Forecasts Fully-funded to deliver the Tyra project: DKK 25.7 billion total cost and P50 first gas (Dec-23) Liquidity (Cash and Undrawn RBL(1,2)) USD million Leverage Ratio (Net Debt / EBITDAX(1,2)) x 750 Total Incremental net 8 capex of ~USD 25 Forward Curve (A
Slide 21: Conclusion
Conclusion
Slide 22: Focus: Securing and Expediting Tyra II First Gas
Focus: Securing and Expediting Tyra II First Gas Strong outlook supports both Noreco’s stable capital structure and robust liquidity position Importance of Tyra II Clearly Understood ▪ Economically, strategically, politically Focus Remains on Expediting First Gas ▪ Active approach to improving perfo
Slide 23: Q&A Session
Q&A Session
Slide 24: Glossary
Glossary
Slide 25: Glossary
Glossary COW Carry-Over Work FID First Investment Decision HUC Hook-Up & Commissioning RBL Reserve Base Lending facility TEG Process Module TEH Accommodation Unit TE-WHRP Tyra East wellhead and riser platform TW-WHRP Tyra West wellhead and riser platform WROM Well Reservoir Optimisation and Manageme