The AntiCorruption Statoils AntiCorruption Compliance Programme Jakarta 21

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The Anti-Corruption Statoil’s Anti-Corruption Compliance Programme Jakarta, 21 October 2015 Compliance Programme Stockholm November

The Anti-Corruption Statoil’s Anti-Corruption Compliance Programme Jakarta, 21 October 2015 Compliance Programme Stockholm November 2012 Countering 14 Illicit Financial Flows in the Extractive Industry Erik I. Nürnberg, Senior Legal Counsel

2 - Classification: Internal 2011 -09 -05 Classification: Internal 2011 -08 -22

2 - Classification: Internal 2011 -09 -05 Classification: Internal 2011 -08 -22

Statoil operates in challenging countries Classification: Internal (Restricted Distribution) 2010 -10 -27

Statoil operates in challenging countries Classification: Internal (Restricted Distribution) 2010 -10 -27

The global legal framework for our business • Norwegian law (Civil Penal Code §§

The global legal framework for our business • Norwegian law (Civil Penal Code §§ 276 a-c) • The US FCPA (part of Securities and Exchange Act) • The UK Bribery Act 2010 • In addition to all applicable local law 4 - Classification: Internal 2010 -08 -19

Anti-corruption work in Statoil Our starting point • Statoil believes that a zero-tolerance policy

Anti-corruption work in Statoil Our starting point • Statoil believes that a zero-tolerance policy on corruption is essential to sustainable business. • Statoil confirms in its Code of Conduct that it opposes all forms of corruptions and will make active efforts to ensure that it does not occur in the group’s business activities. • Statoil defines corruption to also include facilitation payments and trading in influence. Classif 5 ication :

Anti-corruption efforts headed by Legal Our work – three pillars 6 - Prevention Detection

Anti-corruption efforts headed by Legal Our work – three pillars 6 - Prevention Detection Board and management commitment Clear policies and standards Communication and training Reporting Response Incident handling Non-retaliation policy Advisory function Compliance network Ethics Committees Verifications Risk assessment and due diligence Audits Internal controls Contractual standards Supplier follow up Disciplinary actions Learning/ rectification Investigations Self reporting

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and Review Risk Assessment Communication Accounting and financial controls Classif ication : 7 Policies and Procedures

“At Statoil, the way we deliver is as important as what we deliver. ”

“At Statoil, the way we deliver is as important as what we deliver. ” CEO Eldar Sætre

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and Review Risk Assessment Communication Accounting and financial controls Classif ication : 9 Policies and Procedures

Ethics Code of Conduct Our staring point Applies to: o The organization and to

Ethics Code of Conduct Our staring point Applies to: o The organization and to it’s individual employees o Board members o Hired personnel, consultants, intermediaries, lobbyists and others who act on Statoil’s behalf Includes: o Code of business practice o Code of personal conduct o Practice and follow-up Classif ication : 10

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and Review Communicatio n Risk Assessment Policies and Procedures Accounting and financial controls Classif ication : 11

Training and communication Visible and repeated • Mandatory e-learning for all employees • Tailor-made

Training and communication Visible and repeated • Mandatory e-learning for all employees • Tailor-made workshops for employees, suppliers and business partners • Ethics committees • Engagement in compliance networks • Involvement in contract negotiations, projects and business development work 12 - Classification: Internal 2011 -09 -05 Classification: Internal 2011 -08 -22

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and

Anti-Corruption Compliance Program Pieces of the Pie Due Diligence Top Level Commitment Monitoring and Review Risk Assessment Communication Policies and Procedures Accounting and financial controls Classif ication : 13

Monitoring and follow-up Examples of what we do − Regular follow-up of partners through

Monitoring and follow-up Examples of what we do − Regular follow-up of partners through company representatives − Local compliance officers − Annual risk assessment − Financial and accounting controls − Audits & verifications − Ethics Helpline and regular reporting lines − Revenue transparency reporting 14 - Classification: Internal 2011 -09 -05 Classification: Internal 2011 -08 -22

Statoil has reported payments to governments on a country-by-country basis for a decade •

Statoil has reported payments to governments on a country-by-country basis for a decade • Disclosing payments to governments is important to prevent corruption and tax evasion – it enables communities to hold governments accountable • For a decade, Statoil has voluntarily disclosed payments to governments on a country-by-country basis in the Annual Sustainability Report • Statoil has a strong legacy of being open about payments to governments: − We have been rated as the «World’s most transparent company» by Transparency International due to our voluntary disclosures − We are a supporting company of the Extractive Industries Transparency Intiative (EITI) and hold a seat on the global EITI Board • In 2014, we reported payments to governments on a project-by-project basis, aligned with the new requirements in Norway 15

The Norwegian transparency rule • In December 2013, amendments to the Norwegian Accounting Act

The Norwegian transparency rule • In December 2013, amendments to the Norwegian Accounting Act (Regnskaploven) and the Norwegian Securities Act (Verdipapirhandelloven) were passed, requiring disclosure of payments to governments for large extractive and logging companies • Payments to governments must be disclosed at project and country level (similar to EU), and to each government entity: − Tax, royalties, bonuses, fees, production entitlements, dividends, infrastructure improvements and transferal of shares/ownership rights • In addition, ‘contextual information’ must be disclosed: − investments, revenues, purchase of goods and services and production volumes per country − All subsidiaries, including the country of origin, number of employees and each subsidiary’s intercompany interest expenses to other subsidiaries in other jurisdictions 2013 Reporting period 2015 Filing March 2015 16 2016

Payments to Governments (link) 17 Classification: Internal 2012 -08 -29

Payments to Governments (link) 17 Classification: Internal 2012 -08 -29

18 Classification: Internal 2012 -08 -29

18 Classification: Internal 2012 -08 -29

19 Classification: Internal 2012 -08 -29

19 Classification: Internal 2012 -08 -29

Thank you Distribution) 2010 -12 -03 Classification: 20 - Classification: Internal (Restricted 2010 -12

Thank you Distribution) 2010 -12 -03 Classification: 20 - Classification: Internal (Restricted 2010 -12 -09 Classification: Internal (Restricted Internal 2010 -12 -01 Classification: Confidential Distribution) 2010 -12 -03 Classification: Internal 2010 -102010 -1226 Classification: 2010 -10 -24 01 Classification: Internal Confidential 2010 -10 -26 Classification: Internal 2010 -