Twelve months ended 31 December
Income statement (in NOK billion)	2008	2007	08 -07 Change	2006	07-06 Change
Total revenues and other income	46.1	41.6	11%	32.6	28 %
Purchase, net of inventory variation	1.7	1.9	(12 %)	1.0	93 %
Operating expenses	5.6	5.4	4%	4.2	31 %
Selling, general and administrative expenses	3.2	3.3	(4 %)	2.0	65 %
Depreciation, amortisation and impairment	13.7	11.1	23%	14.4	(23 %)
Exploration expenses	9.2	7.7	19%	7.2	7 %
Total expenses	33.3	29.4	13%	28.7	3 %
Net operating income	12.8	12.2	5%	3.9	210 %
Operational data:
Liquids price (USD/bbl)	88.7	69.1	28%	60.9	13 %
Liquids price (NOK/bbl)	499.3	404.8	23%	391.0	4 %
Liftings:
Liquids (mboe per day)	210.8	250.0	(16 %)	191.4	31 %
Natural gas (mboe per day)	58.9	54.9	7%	40.2	37 %
Total liquids and gas liftings (mboe per day)	269.7	304.8	(12 %)	231.6	31 %
Production:
Entitlement liquids (mboe per day)	231.5	252.2	(8 %)	193.7	30 %
Entitlement natural gas (mboe per day)	58.9	55.0	7%	40.2	37 %
Total entitlement liquids and gas production (mboe per day)	290.5	307.2	(5 %)	233.9	31 %
Total equity liquids and gas production (mboe per day)	464.7	422.1	10%	303.5	39 %

We generated total revenues of NOK 46.1 billion in 2008, compared with NOK 41.6 billion in 2007 and NOK 32.6 billion in 2006. The increase from 2007 to 2008 was mainly related to a 19% increase in realised liquid and gas prices, which contributed NOK 7.7 billion, gains from the sale of assets, and income from affiliated companies, which contributed NOK 2.2 billion. This was partly offset by an 11% decrease in the lifted volumes, which contributed negatively by NOK 5.4 billion.

The average daily liquid lifting was 211 mbbl in 2008, compared with 250 mbbl in 2007 and 191 mbbl in 2006.

The average daily entitlement production of liquid was 232 mbbl in 2008, compared with 252 mbbl in 2007 and 194 mbbl in 2006. The 9% decrease in average daily liquid production from 2007 to 2008 was mainly related to decreased production from ACG in Azerbaijan due to the Central Azeri gas leakage and Kizomba A in Angola coming off plateau, in addition to overall reduced entitlement volumes from PSA fields due to high realised prices. These decreases were partly offset by start-ups of Agbami in Nigeria and the Saxi-Batuque and Mondo fields in Angola.

The average daily entitlement production of gas was 59 mboe in 2008 (equivalent to 9 mmcm or 331 mmcf), compared to 55 mboe in 2007 (equivalent to 9 mmcm or 309 mmcf) and 40 mboe in 2006 (equivalent to 6 mmcm or 224 mmcf). The 7% increase in daily gas production from 2007 to 2008 was mainly related to ramp-up of production from Shah Deniz in Azerbaijan, and the start-up of new gas fields in the GoM in the third and fourth quarters of 2007 (Q, Spiderman, San Jacinto). The increase was partly offset by divestment of the GoM shelf fields with effect from year end 2007 and reduced offtake and a maintenance turnaround at the In Salah field in Algeria.

The average daily equity liquid and gas production was 465 mboe per day in 2008, compared with 422 mboe in 2007 and 304 mboe in 2006.

The unit of production cost based on entitlement volumes was USD 7.6 per boe in 2008 compared to USD 5.9 per boe in 2007 and USD 5.8 per boe in 2006. Measured in NOK, it was 42.2 per boe in 2008, 34.4 per boe in 2007 and 37.5 in 2006. The 23% increase in unit of production cost measured in NOK from 2007 to 2008 is mainly due to reduced entitlement production and increased cost related to new fields on stream, increased activity, inflation and industry cost pressure.

The unit of production cost based on equity volumes was USD 4.6 per boe in 2008 compared to USD 4.3 per boe in 2007 and USD4.50 per boe in 2006. Measured in NOK it was 42.2 per boe in 2008, 25.0 per boe in 2007 and 28.9 per boe in 2006. See report section 4.1.9 Financial performance-Strong operational performance-Reported Volumes for a description of entitlement and equity volumes.

Operating, general and administrative expenses decreased by NOK 0.1 to NOK 10.5 billion in 2008 compared to NOK 10.6 billion in 2007 and NOK 7.2 billion in 2006.

Depreciation, depletion and amortisation expenses were NOK 13.7 billion in 2008, compared with NOK 11.1 billion in 2007 and NOK 14.4 billion in 2006. The 23% increase in 2008 compared to 2007 was due to an increased net impairment write-down effect of NOK 0.9 billion mainly related to market conditions, and a NOK 1.7 billion increase in ordinary depreciation mainly due to new assets coming on stream and a change in the proved reserves estimates in 2008, which forms the basis for the unit of production depreciation.

Depreciation, depletion and amortisation expenses were NOK 11.1 billion in 2007, compared with NOK 14.4 billion in 2006. The 23 decrease in 2007 compared to 2006 was mainly due to the NOK 4.9 billion impairment write-down effect on depletion, depreciation and

amortisation accounts of US GoM shelf fields and Front Runner in our US portfolio in 2006. This decrease was partly offset by impairment write-downs of NOK 1.2 billion for Lufeng, Front Runner, Thunder Hawk and US GoM shelf fields in 2007. A change in the proved reserves estimates in 2007, which forms the basis for the unit of production depreciation, and increased depreciation from new assets coming on stream also contributed to the increase.

	Twelve months ended 31 December
Exploration (in NOK billion)	2008	2007	08-07 Changes	2006	07-06 Changes
Exploration expenditure (activity)	9.1	8.5	8%	8.7	(3 %)
Expensed, previously capitalized exploration expenditure	3.0	1.6	88%	1.3	26 %
Capitalized share of current period's exploration activity	(2.9)	(2.4)	(23 %)	(2.8)	16 %
Exploration expenses	9.2	7.7	20 %	7.2	7 %

Exploration expenditure was NOK 9.1 billion in 2008, compared with NOK 8.5 billion in 2007 and NOK 8.7 billion in 2006. The increase from 2007 to 2008 was mainly due to more expensive wells, higher field evaluation costs and delineation drilling on the oil sands project in Canada.

Exploration expenses were NOK 9.2 billion in 2008, compared with NOK 7.7 billion in 2007 and NOK 7.2 billion in 2006. The increase from 2007 to 2008 was mainly due to more expensive wells, higher field evaluation costs and delineation drilling in the oil sands project in Canada and impairment write-down effects mainly related to changes in market conditions. The increase was partly offset by an increased capitalisation rate.

In total, 40 exploration and appraisal wells were completed in 2008 and at year end, eight of these were considered to be discoveries or confirmed discoveries. At year end, nine wells were pending final evaluation. In 2007, 47 exploration and appraisal wells were completed, 18 of which were considered discoveries. In 2006, 55 exploration and appraisal wells were completed, 24 of which were considered discoveries.

Net operating income in 2008 was NOK 12.8 billion compared to NOK 12.2 billion in 2007 and NOK -3.3 billion in 2006. The increase was mainly related to the price effect which contributed NOK 7.7 billion and gains from the sale of assets and income from affiliated companies of NOK 2.2 billion and other miscellaneous increases of NOK 0.2 billion, partly offset by decreased entitlement production contributing NOK 5.4 billion, increased depreciation, depletion and amortisation of NOK 2.6 billion and exploration NOK 1.5 billion.