US Gulf of Mexico

Since 2003, we have established a significant deepwater portfolio, and we are one of the largest deepwater acreage holders in the Gulf of Mexico (GoM). Our current deepwater GoM portfolio consists of more than four hundred leases.

During 2008, we completed nine exploration wells and appraisal wells. Appraisal well Big Foot 3, sidetrack number two, has confirmed the same pay intervals as the previously announced discovery and sidetrack well. Three additional wells were ongoing at year end. Two of them have been completed in the first quarter with one announced discovery.

We were awarded 21 deepwater blocks in the Central Lease Sale 205 in the first quarter of 2008. We participated in Central Lease Sale 206 and Western Lease Sale 207 held in 2008. Following the sales, we were awarded 16 leases from Central Lease Sale 206 and five leases from Western Lease Sale 207 . In addition we were the highest bidder on 23 deepwater leases in Central Lease Sale 208 announced on 18 March 2009. The winning bids are subject to review and final approval by the Mineral Management Service (MMS), which can take up to 90 days.There are no work commitments associated with Gulf of Mexico leases.

In 2008, we signed an agreement with the Colombian oil company Ecopetrol America inc. under which the two companies will form a Joint Exploration Team for the Gulf of Mexico and drill three or more wells in the coming years. Ecopetrol will farm in with interests of 20 to 30% in the wells covered by the agreement.

We have contracted two newly built rigs, Maersk Developer (joint contract with Woodside) and Discoverer Americas, which are expected to arrive in the Gulf of Mexico during 2009. These rig slots will be used to drill exploration and appraisal wells on our operated exploration acreage. In addition we expect to participate as a partner in a number of exploration and appraisal wells.

Alaska

In 2008 we were awarded 16 leases in Chukchi Sea Lease Sale 193 in Alaska. Fourteen of them were joint bids with ENI Petroleum. We are the operator of all leases. The Chukchi Sea is located off the coast of Alaska northwest of Prudhoe Bay, in water depths of less than 100 metres. The area is considered a frontier area with no production or infrastructure as of today. There are no work commitments associated with Alaska leases.