Confidence in Our Own Abilities

HALF-YEAR

2017REpoRt

HALF-YEAR

2017REpoRt

Half-Year Report 2017 3

MissionTo develop Suriname’s hydrocarbon potential over the full value chain, to generate electricity and, to develop renewable sustainable energy resources.

To secure the energy supply of Suriname and to establish a solid position in the regional market.

To expand our reputation based on our growth performance, flexibility and corporate social responsibility.

ValuesHSEC Focused: We put health and safety first, strive for zero harm to our people and the communities around us, and minimize negative impacts upon the environment.

Integrity: We are honest and do what we say we will do.

people Focused: We create a supportive and collaborative environment, respect each other, are open to other’s ideas and facilitate personal and professional growth.

Excellence: We set high standards for quality, strive to exceed expectations and do our work with a sense of urgency.

Accountability: We accept responsibility for our job and actions, are co‑operative, and create a non‑blaming environment.

Vision• Leading the sustainable development of Suriname’s energy industry.• Making a strong contribution to the advancement of our society.• Becoming a regional player with a global identity in the energy market.

4Confidence in Our Own Abilities

ContEntS

5 I Shareholder, Supervisory Board, Board of Executive Directors and Management

6 II Letter of the Managing Director

9 III Independent Auditor’s Report

13 IV Condensed Interim Consolidated Financial Statements

14 1. Condensed Interim Consolidated Balance Sheet as at June 30, 201716 2. Condensed Interim Consolidated Income Statement for the six months ended June 30, 201717 3. Condensed Interim Consolidated Statement of Changes in Shareholder’s Equity for the six months ended June 30, 201718 4. Condensed Interim Consolidated Statement of Other Comprehensive Income as at June 30, 201719 5. Condensed Interim Consolidated Cash Flow Statement for the six months ended June 30, 2017

20 V notes to the Condensed Interim Consolidated Financial Statements

29 VI other information

Half-Year Report 2017 5

I Shareholder, Supervisory Board, Board of Executive Directors and Management As at 30 June, 2017

Sole Shareholder The Republic of Suriname represented by:• thePresident,HisExcellency

D.D.Bouterse,onhisbehalf:• theVicePresident,A.M.Adhin

Supervisory Board E.Boerenveen ChairmanG.Asadang MemberA.Immanuel MemberE.Poetisi MemberM.Rommy Member

Board of Executive Directors

R.Elias ManagingDirectorB.Dwarkasing DirectorUpstreamA.Moensi‑Sokowikromo DirectorFinance

Deputy Director A.Jagesar DeputyDirector DownstreamAsset Managers

P.Brunings AssetManager ProductionC.Hughes RefineryAssets ManagerR.Spuij ManagerExploration& AppraisalAsset

Division Managers

I.Ambrose ManagerCorporate AuditK.Ashruf‑Thijm ManagerHRM UpstreamR.Bissumbhar ManagerProduction UnitTambaredjoC.vanderBliek ManagerMaintenance &TurnaroundD.Brunings ManagerCorporate CommunicationS.Chintoe ManagerBusiness Economics(Acting)M.Daal‑Vogelland ManagerPetroleum ContractsM.Dompig Manager Marketing(Acting)J.Gajadin‑Joella ManagerCorporate LegalAffairsW.Gajapersad ManagerRefining OperationsV.GangaramPanday ManagerCorporate Planning&ControlP.Goerdajal ManagerDrilling Operations

T.Haarloo ManagerCorporate HRMK.Kalijan ManagerHRM DownstreamD.Kertotiko ManagerTechnical SupportServicesK.LieAKwie ManagerHealth, Safety&Environment DownstreamS.Mannes Manager Health,Safety, Environment&Quality CorporateB.Nandlal ManagerFunctional SubsurfaceSupportA.Nelson ManagerExplorationD.Pello ManagerTechnical SevicesR.Ramautar ManagerRenewable EnergySourcesA.Ramsaransingh‑Karg ManagerProcurement CorporateA.Schuitemaker‑Nghollo ManagerProduction UnitTNW/CalcuttaA.Sleman ManagerInformation& Communication TechnologyR.Soekhlal ManagerHealth,Safety &EnvironmentUpstreamR.Speelman ManagerProcurement UpstreamA.Vermeer ManagerFinance AdministrationM.Woelkens ManagerProcurement Downstream

Manager assigned

D.Ratchasing ManagerSAPProgram

Subsidiaries L.Brunings ChiefFinancial OfficerVentrin PetroleumCompanyLtd.E.Fränkel Managing DirectorStaatsolie PowerCompany SurinameN.V.A.Ghent ChiefExecutiveOfficer VentrinPetroleum CompanyLtd.C.Heuvel DirectorFinanceGOw2 EnergySurinameN.V.A.Kleiboer OperationsManager StaatsoliePower CompanySurinameN.V.A.NaiChungTong ManagingDirector GOw2Energy

6Confidence in Our Own Abilities

The international oil industry has become acommodity market characterized by on‑going oilpricevolatilitywithanoveralllowerpriceforalongerperiod of time. We cannot control internationaloil prices, but we do control how we operate ourbusiness. In the first half of 2017, we continuedto instil a culture of ownership so all employeesunderstandhowtheireffortscontributedirectly tothesuccessofStaatsolie.

Crude oil production and refinery outputIn the first half of 2017, the average price of ourSaramacca Crude was $44.48 per barrel. Weexperienced challenges in ramping up production,achieving a total crude production of 2,953,463barrels, equating to 16,319 barrels per day. Wellsdrilledin2016andinearly2017wereattheedgesof our production fields and had not reached thedesiredlevelofproductivity.Thiswasduetofactorssuch as lower pressure and increased oil watercontact, fewer wells drilled than forecasted anda lower contribution from new oil wells. We nowanticipate achieving production at an average of16,177 barrels per day rather than at our previoustarget of 17,000.To preserve and enhance futureproduction, we will be drilling 7 appraisal wells inthesecondhalf,whichwillbringourtotalappraisalwellcountforthefullyearto14.

Attherefinery,thehardworkundertakentoimproveequipment and processes has delivered results:in the second quarter of the year we exceededourhigh‑endproduct targetby35%.Basedonourachievementof1.12millionbarrelsinthefirsthalfoftheyearandautilizationrateof66%,weanticipateachievingoutputof2.5millionbarrelsofhigh‑endproductforthefullyear.Ataprojectedaveragepriceof$69.90perbarrelhigh‑endproducts,therefinerywill make a significant contribution to Staatsolie’ssuccessthisyearandformanyyearstocome.

Mirroringthesuccessattherefinery,Iampleasedto report that our Merian gold investment isbringing net profit of US$ 22.6 million in the firsthalfof2017,withthemineachieving215,000oz.ofgold production to 30June at an average price of$1,243peroz.Forecastproductionforthefullyearis502,000oz.atanevenhigherprice than in thefirsthalfof2017.

II Letter of the Managing Director

Half-Year Report 2017 7

Revenue and earningsOur consolidated gross revenues in the first halfof 2017 increased by 20% to US$ 204.6 millioncomparedtothefirsthalfof2016.Wealsoachievedconsolidated earnings before tax of US$ 40.0millionthisperiod,a381%increaseonthe2016halfyear.Thisisapleasingresultandatestamenttotheefforts of all our people to take ownership of thebusinessandfocusoncosts.For the full year 2017, our estimate is that overallconsolidatedgrossrevenueswillbeUS$472million.

Offshore In the Kolibrie‑1 well drilled in Block 53 inMarch/April no commercial hydrocarbons wereencountered. Block 53 partners are ApacheCorporation(operator),CEPSAandPetronas.

In July 2017, Product Sharing Contract’s (PSC’s)weresignedforoffshoreBlock59(withaconsortiumof ExxonMobil, Hess Corporation and Statoil)and Block 60 (Statoil), bringing our total offshoreacreageundercontractto44%.Activities planned for the second half of 2017includetheAraku‑1well tobedrilledbyTullowOilin Block 54, 3D seismic by mid‑October in Block47,and2DseismicbyStatoilinBlock60.Thisworkwill continue toenhanceourunderstandingofouroffshoregeology.

On 15 September 2017 we commenced anotherOpenDoorPolicy foroffshoreSuriname toattractadditionalacreagepartners.

In the shallow nearshore, we continue to lookfor farm‑in partners in Block B and Block C. As aparallel strategy, we are currently also exploringthepossibilityofundertakingexplorationactivitieson our own accord in these shallow waters. Weaim to fund these activities with capital freed upby refinancing our outstanding US$ 286 millioncorporateloan,witharefinancingtargetdateofyearend2017/early2018.

A business driven by valuesIn preparing Staatsolie for a commercial offshorediscoverybyoneofourPSCpartnersandremaininga lowestcostquartileproducer,wehave toensureStaatsoliehastherightpeopleintherightrolesatalltimes.Wearethereforeputtingseveralpoliciesandprogramsinplace,suchascapabilitiesassessmentsand360degreefeedback,jobrotation,secondments

to our offshore partners and succession planning,together with coaching and mentoring. Also, theCulture Change program is being conducted toimbed integrity, excellence, accountability andperformance management in our daily operations.WiththisprogramwewanttosecurethemaximumvaluefromthereorganisationofStaatsolie intoanasset‑ledbusiness.

Our number one value is to put health and safetyfirst, strive for zero harm to our people and thecommunities around us, and minimize negativeimpacts upon the environment. We have had toreporttwoLostTimeInjury(LTI)incidents,neitheroftheselife‑changing.Wemustredoubleoureffortstoachieveourgoalofzeroincidentsbysupportingouremployeesandaclearunderstandingofhoweachof us contributes to Staatsolie’s safe operations.To this end, we will be focussing on leading HSEindicatorsinsteadoflaggingindicators.Withregardto communities, we are shifting our CorporateSocialResponsibility(CSR)focustowardstheareasweoperatein.

Thepositiveattitudeofour teamand thesuccesswearehaving fromournewbusinessmodelgivesme great hope for our future. Maintaining crudeproduction above 16,000 barrels per day, andmeeting the refinery output targets, we are wellpositionedasweenterthesecondhalfof2017.

Thankyou!

Rudolf EliasManagingDirector&CEOStaatsolieMaatschappijSurinameNV

8Confidence in Our Own Abilities

Taking a Saramacca Crude sample in the Tambaredjo-Northwest field.

The positive attitude of our team and the success we are having from our new business model gives me great hope for our future.

Half-Year Report 2017 9

III Independent Auditor’s Report

The Shareholder and Supervisory Board ofStaatsolieMaatschappijSurinameN.V.Paramaribo,Suriname

Qualified OpinionWe have audited the accompanying condensedinterim consolidated financial statements 2017of Staatsolie Maatschappij Suriname N.V. anditssubsidiaries(theGroup),inParamaribo,whichcomprisethe interimconsolidatedbalancesheetas at June 30, 2017, and the related interimconsolidated income statement, changes inshareholder’s equity and cash flows for thesix months ended June 30, 2017 and notes tothe condensed interim consolidated financialstatements.

Inouropinion,exceptforthepossibleeffectsofthematterdescribedintheBasis for Qualified Opinionsectionofourreport,theaccompanyingcondensedinterim consolidated financial statements 2017givea trueand fairviewof thefinancialpositionoftheGroupasatJune30,2017,andofitsinterimconsolidatedfinancialperformanceanditsinterimconsolidated cash flows for the six months thenendedinaccordancewithU.S.generallyacceptedaccountingprinciples.

Basis for Qualified OpinionStaatsolie Maatschappij Suriname N.V.’s(Staatsolie) investment inSurinameGoldProjectC.V. (Surgold), a limited partnership engagedin the exploration, development and extractionof gold under mining concessions granted bythe Republic of Suriname with commercial goldproduction commenced in October 2016 andaccountedforattheequitymethod, iscarriedatUSD295,027thousandontheinterimconsolidatedbalancesheetasatJune30,2017,andStaatsolie’sshare of Surgold’s net result of USD 22,641thousand is included in the Group’s income forthe six months endedJune 30, 2017.The annualfinancialstatementsofSurgoldarebeingauditedby another independent accounting firm. Thereare no available audited financial statements ofSurgoldasatand for thesixmonthsendedJune30, 2017. We were unable to obtain sufficientappropriate audit evidence about the carryingamountofStaatsolie’sinvestmentinSurgoldasatJune30,2017,andStaatsolie’sshareofSurgold’snetresultfortheperiodbecausewedonothaveaccesstothefinancialinformation,management,

and the auditors of Surgold. Consequently, wewereunabletodeterminewhetheradjustmentstotheseamountswerenecessary.WerefertoNote5ofthecondensedinterimconsolidatedfinancialstatements2017.

We conducted our audit in accordance withInternational Standards on Auditing (ISAs). Ourresponsibilitiesunderthosestandardsarefurtherdescribed in the Auditor’s Responsibilities for the Audit of the Condensed Interim Consolidated Financial Statementssectionofourreport.WeareindependentoftheGroupinaccordancewiththeethicalrequirementsthatarerelevanttoourauditof the condensed interim consolidated financialstatements, and we have fulfilled our otherethical responsibilities in accordance with theserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourqualifiedopinion.

Other InformationManagement is responsible for the otherinformationincludedinthe2017half‑yearreport.Inadditiontothecondensedinterimconsolidatedfinancialstatementsandourauditor’sreport,thehalf‑year report contains other information thatconsists of the Letter of the Managing Director,andOtherinformation.

Ouropiniononthecondensedinterimconsolidatedfinancial statements does not cover the otherinformation included in the half‑year report,and we do not express any form of assuranceconclusionthereon.

In connection with our audit of the condensedinterim consolidated financial statements, ourresponsibility is to read the other informationincluded inthehalf‑yearreportwhenitbecomesavailable and, in doing so, consider whether theother information is materially inconsistent withthe condensed interim consolidated financialstatementsorourknowledgeobtainedintheauditorotherwiseappears tobemateriallymisstated.Based on the procedures performed, the otherinformationincludedinthehalf‑yearreportisnotmateriallyinconsistentwiththecondensedinterimconsolidated financial statements and appearsnottobemateriallymisstated.

10Confidence in Our Own Abilities

Responsibilities of Management and Those Charged with Governance for the Condensed InterimConsolidated Financial StatementsManagement is responsible for the preparationof these condensed interim consolidatedfinancial statements that give a true and fairview in accordance with U.S. generally acceptedaccountingprinciples,andforsuchinternalcontrolasmanagementdeterminesisnecessarytoenablethepreparationofcondensedinterimconsolidatedfinancial statements that are free from materialmisstatement, whether due to fraud or error. Inpreparing these condensed interim consolidatedfinancialstatements,managementisresponsibleforassessingtheGroup’sabilitytocontinueasagoingconcern, disclosing, as applicable, matters relatedtogoingconcernandusinggoingconcernbasisofaccounting unless management either intends toliquidate theGroupor toceaseoperations,orhasnorealisticalternativebuttodoso.

ThosechargedwithgovernanceareresponsibleforoverseeingtheGroup’sfinancialreportingprocess.

Auditor’s Responsibilities for the Audit of the Condensed Interim Consolidated Financial StatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthecondensedinterimconsolidatedfinancial statements as a whole are free frommaterial misstatement, whether due to fraud orerror,andtoissueanauditor’sreportthatincludesour opinion. Reasonable assurance is a high levelofassurance,but isnotaguarantee thatanauditconducted in accordance with ISAs will alwaysdetect a material misstatement when it exists.Misstatements can arise from fraud or error andare considered material if, individually or in theaggregate, they could reasonably be expected toinfluencetheeconomicdecisionsofuserstakenonthebasisofthesecondensedinterimconsolidatedfinancialstatements.

AspartofanauditinaccordancewithISAs,weexerciseprofessional judgment and maintain professionalskepticismthroughouttheaudit.Wealso:• Identify and assess the risks of material

misstatement of the condensed interimconsolidated financial statements, whetherdue to fraud or error, design and performaudit procedures responsive to those risks,and obtain audit evidence that is sufficientand appropriate to provide a basis for ouropinion. The risk of not detecting a material

misstatement resulting from fraud is higherthan for one resulting from error, as fraudmay involve collusion, forgery, intentionalomissions,misrepresentationsortheoverrideofinternalcontrol.

• Obtain an understanding of internal controlrelevant to the audit in order to design auditprocedures that are appropriate in thecircumstances, but not for the purpose ofexpressinganopinionontheeffectivenessoftheGroup’sinternalcontrol.

• Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosuresmadebymanagement.

• Conclude on the appropriateness ofmanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelated to events or conditions that may castsignificant doubt on the Group’s ability tocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,weare requiredtodrawattentioninourauditor’sreporttotherelated disclosures in the condensed interimconsolidated financial statements or, if suchdisclosures are inadequate, to modify ouropinion. Our conclusions are based on theauditevidenceobtainedupto thedateofourauditor’s report. However, future events orconditions may cause the Group to cease tocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthecondensedinterimconsolidatedfinancialstatements,includingthedisclosures,and whether the condensed interimconsolidated financial statements representthe underlying transactions and events in amannerthatachievesfairpresentation.

• Obtain sufficient appropriate evidenceregarding the financial information of theentitiesorbusinessactivitieswithintheGroupto express an opinion on the condensedinterimconsolidatedfinancialstatements.Weare responsible for the direction, supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.

Half-Year Report 2017 11

We communicate with those charged withgovernance regarding, among other matters,the planned scope and timing of the audit andsignificantauditfindings,includinganysignificantdeficiencies in internalcontrol thatwe identifiedduringouraudit.

We also provide those charged with governancewith a statement that we have compliedwith relevant ethical requirements regardingindependence,andtocommunicatewiththemall

relationships and other matters that mayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Paramaribo,October24,2017Lutchman&CoAccountants

wassignedbyDrs. M.R.A. Lutchman RA,charteredaccountant

12Confidence in Our Own Abilities

View on the refinery from the SPCS power plant.

Half-Year Report 2017 13

Condensed Interim Consolidated Financial Statements 2017

14Confidence in Our Own Abilities

IV Condensed Interim Consolidated Financial Statements 1. Condensed Interim Consolidated Balance Sheet as at June 30, 2017 (Before distribution of earnings)(x US$1,000)

As at June 30, As at Dec 31,

ASSEtS notes 2017 2016Current assets

Cashandcashequivalents 74,940 39,166

Shortterminvestments 3,708 3,754

Tradereceivables 4 126,119 108,329

Inventories 66,099 67,142

Prepaidexpensesandothercurrentassets 78,984 68,664

ShorttermLoanReceivables 10,202 8,368

360,052 295,423

InvestmentsParticipationinJointVentures 3,063 3,063

ParticipationinSurinameGoldProjectCV 5 295,027 305,656

298,090 308,719

Intangible assets 12,880 13,881

Deferred tax asset 6 16,197 16,062

Loan receivable long term 12,842 14,677

Property, plant and equipment

Upstream 393,060 336,530

Refining 990,268 999,152

Marketing&trading 9,410 10,101

Powerplant 96,840 101,172

Corporate&other 36,777 37,181

1,526,355 1,484,136

Projectsinprogress 125,484 132,140

1,651,839 1,616,276

Total assets 2,351,900 2,265,038

The notes in Chapter V are an integral part of these Condensed Interim Consolidated Financial Statements

Paramaribo, October 24, 2017

Half-Year Report 2017 15

As at June 30, As at Dec 31,

LIABILItIES Notes 2017 2016Current liabilities

Tradepayables 83,452 91,994

Bankoverdraft 3,713 3,713

Accruedliabilities 129,435 87,042

Incomeandothertaxespayable 30,295 16,014

Shorttermportionofloans 87,385 69,031

334,280 267,794

Long term liabilities

Bond 7 98,572 98,475

TermLoans 8 546,290 591,646

Otherlongtermliabilities 6,847 6,544

651,709 696,665

Provisions

Dismantlementandabandonment 175,807 132,933

Pensions&otherpostretirementbenefits 9 16,749 16,037

Pensionplan 10 34,262 34,234

EnvironmentalRisk 3,016 3,016

229,834 186,220

Shareholder’s equity 1,136,077 1,114,359

Total Liabilities & Shareholder’s equity 2,351,900 2,265,038

The notes in Chapter V are an integral part of these Condensed Interim Consolidated Financial Statements

Paramaribo, October 24, 2017

16Confidence in Our Own Abilities

2. Condensed Interim Consolidated Income Statement for the six months ended June 30, 2017 (x US$1,000)

Jan - Jun 30 Jan - Jun 30

Notes 2017 2016Revenues from

Production&Refining 110,003 70,935

Tradingactivities 69,921 80,304

Electricenergy 24,331 17,293

Inventoryvariation 168 939

Otherrevenues 138 1,296

Gross revenues 13 204,561 170,767

Explorationexpensesincludingdryholes (663) (875)

Productionexpenses (22,751) (23,495)

Refineryexpenses (23,449) (23,282)

Depreciation/Amortization (48,076) (50,228)

Accretionexpenses (5,636) (3,623)

Export,transportandsalescosts (11,764) (11,805)

Trading&Otheroperationalcosts (26,927) (43,126)

Operating income 65,295 14,333

Generalandadministrativeexpenses (11,460) (11,323)

ExpensedProjects ‑ (50)

Financialincome(expenses) (33,741) (17,598)

Otherincome(expenses) (2,701) (140)

ShareinnetresultofinvestmentSurinameGoldProjectCV*) 22,641 ‑

Earnings before tax 40,034 (14,778)

Incometaxcharge 14 (13,778) (2,924)

Net profit 26,256 (17,702)

*) The share in net income recognized for the six months ended June 30, 2017 was based on unaudited figures of Suriname Gold Project CV

The notes in Chapter V are an integral part of these Condensed Interim Consolidated Financial Statements

Paramaribo, October 24, 2017

Half-Year Report 2017 17

3. Condensed Interim Consolidated Statement of Changes in Shareholder’s Equity for the six months ended June 30, 2017 The movement for the six months ended June 30, 2017 consists of the following:

Common stock

General reserve

Appropriated reserve for

environmental risk

Appropriated reserve

Committee Rehabilitation and Expansion

of Sports facilities

Accumulated net other

comprehensive income

Total

XUS$1,000

Balance as at January 1, 2016 12,104 1,117,675 8,000 3,360 (22,384) 1,118,755

Equity movements:

Transferfromearnings ‑ 5,294 ‑ ‑ ‑ 5,294

Prepaidpensionbenefits ‑ (72) ‑ ‑ ‑ (72)

Currencytranslationadjustment ‑ ‑ ‑ ‑ (3,158) (3,158)

Allocation/(Withdrawal)1) ‑ ‑ 500 (744) (6,217) (6,461)

BalanceasatDecember31,2016 12,104 1,122,897 8,500 2,616 (31,759) 1,114,359

Equity movements:

Transferfromearnings ‑ 26,045 ‑ ‑ ‑ 26,045

Prepaidpensionbenefits ‑ 38 ‑ ‑ ‑ 38

Currencytranslationadjustment ‑ ‑ ‑ ‑ (4,546) (4,546)

Allocation/(Withdrawal)1) ‑ ‑ 250 (39) (30) 181

Balance as at June 30, 2017 12,104 1,148,981 8,750 2,577 (36,335) 1,136,077

1) Allocation/ (Withdrawal) consists of the following items:

• Allocationtoappropriatedreserveforenvironmentalrisks:US$250,001. Annually,anamountofUS$500,000isallocatedforenvironmentalrisks.AsatJune30,2017,the appropriatedreserveforenvironmentalrisksamountedtoUS$8.8million.• WithdrawalfromappropriatedreserveCommitteeRehabilitationandExpansionofSportsfacilities:US$(39,115.1).• WithdrawalfromaccumulatednetotherComprehensiveIncome:US$(29,606.9).Seenote4forthebreakdownofthisamount.

18Confidence in Our Own Abilities

4. Condensed Interim Consolidated Statement of other Comprehensive Income as at June 30, 2017

X US$ 1,000

Pensions & other postretirement benefits

Unrealized gains and losses short term

investments

Foreign Currency Translation Adjustment

Total

BalanceasatDecember31,2016 (46,584) 1,921 (3,158) (47,821)

Currentperiodchangeexcludingamountsreclassifiedfromaccumaltedothercomprehensiveincome

(38) (30) (4,546) (4,614)

Balance as at June 30, 2017 (46,622) 1,891 (7,704) (52,435)

Taxonamountsrecognised/reclassified

16,775 (675) ‑ 16,100

Total, net of tax as at June 30, 2017 (29,847) 1,216 (7,704) (36,335)

Half-Year Report 2017 19

5. Condensed Interim Consolidated Cash Flow Statement for the six months ended June 30, 2017

Jan-Jun 30 Jan-Jun 30

XUS$1,000 2017 2016Operating activities

Netearnings 26,256 (17,702)

Depreciation/Amortization 48,076 23,282

In(de)creaseinincomeandothertaxespayable 13,324 (2,722)

In(de)creaseintradepayables (8,542) (23,849)

In(de)creaseinbankoverdraft ‑ 1,347

In(de)creaseinaccruedliabilities 42,397 3,069

(In)decreaseinreceivables (17,781) (6,938)

De(in)creaseininventories 1,043 (15,446)

In(de)creaseinpensionplan 28 (857)

In(de)creaseindismantlementandabandonment 42,874 4,277

In(de)creaseinprovisionforpensionsandotherpostretirementbenefits 712 584

In(de)creaseindeferredtaxasset (135) 2,310

In(de)creaseinprepaidexpensesandothercurrentassets (9,376) 20,156

In(de)creaseinshort‑terminvestments 46 2,988

138,922 (9,501)

Investing activities

Investmentinproperty,plantandequipment (82,641) 19,722

Disinvestmentinproperty,plantandequipment 4 39

(In)decreaseinParticipationSurinameGoldProjectCV 10,629 (16,833)

(In)decreaseinloanreceivables 1 (26,837)

(72,007) (23,909)

Financing activities

In(de)creasein7,75%bond 97 197

In(de)creaseintermloans (27,003) 16,669

In(de)creaseinotherlongtermliabilities 303 ‑

In(de)creaseingeneralreserve (9,155) 8,408

In(de)creaseinappropriatedreserve'CommitteeRehabilitationandExpansionofSportsFacilities

39 (744)

In(de)creaseinnetothercomprehensiveincome 4,548 7,355

In(de)creaseinunrealizedgainsandlossesshort‑terminvestments 30 2,020

(31,141) 33,905Netcashflow 35,774 495

Cashandcashequivalentsatendofpreviousperiod 39,166 54,064

Cashandcashequivalentsatendofcurrentperiod 74,940 54,559

20Confidence in Our Own Abilities

General InformationStaatsolieMaatschappijSurinameN.V.(Staatsolie)is an integrated oil company incorporated in theRepublic of Suriname. The integrated activitiesincludeexploration,production,refining,marketinganddistributionofpetroleumproducts.Throughitssubsidiary(SPCS),Staatsolieisengagedinelectricpowergeneration.

Staatsolie has four (4) subsidiaries of which three(3)whollyowned:ParadiseOilCompanyN.V.(POC)and GOw2 Energy Suriname N.V. incorporated inthe Republic of Suriname and Ventrin PetroleumCompanyLimited,abunkeringcompanyincorporatedintheRepublicofTrinidadandTobago.Staatsolie holds 102,999 out of 103,000 sharesof the Staatsolie Power Company Suriname N.V.(SPCS), incorporated in the Republic of Suriname,and the local electricity company N.V. EBS holdsoneshare.Furthermore, as of November 2014 Staatsolie hasa interestof25% in theSurinameGoldProjectCV(‘Surgold’), a limited partnership created betweenNewmontSurinameLLCandStaatsolie.POCis,atthemoment,adormantcompany.InJune2015,theoperationsofPOCwereputonholdandthecompanydidnothaveanyactivityduringthereportingperiodof2017. In the futurePOCwill participate inJointVentureopportunitieswiththirdparties.

1 Summary of Accounting policies

Principles of consolidationThese consolidated financial statements includethe accounts of subsidiaries for which Staatsoliehascontrol.Theconsolidatedfinancialstatementsare prepared in accordance with U.S. GenerallyAcceptedAccountingPrinciples (USGAAP) for theoilandgasindustriesinparticular.Thefinancialdataof Staatsolie and its subsidiaries are consolidatedunder elimination of intercompany balances, salesandpurchases.

Foreign currency transactions and translationUntil December 31, 2015, the US dollar was thefunctionalcurrencyandalsothereportingcurrencyofallofthecompany’sconsolidatedoperationsanditsequityinvestment.Gainsandlossesarisingfromforeign currency denominated transactions aregenerallyrecognizedinthecurrentperiodincome.Gainsandlossesfromcurrencyremeasurementare

includedinthecurrentperiodincomewithreferenceto the applicable buying rates as published bythe Centrale Bank van Suriname. The cumulativetranslationeffectofaconsolidatedsubsidiaryusingfunctional currency other than the US dollar areincludedin‘Currencytranslationadjustment’ontheConsolidatedStatementofChangesinEquity.

Cash and cash equivalentsCash includes not only currency on hand butdemand deposits with banks or other financialinstitutions.Cashequivalentsareshortterm,highlyliquidinvestmentswithmaturitiesofthreemonthsor lesswhenacquired,whichhavean insignificantriskofchangesinvalue.

Short-term investmentsShort‑terminvestmentsarestatedatmarketvalueandareclassifiedasavailableforsale.The market value of shares is derived from thevalue quoted by the ‘Effectenbeurs van Suriname’(Stock Exchange of Suriname). The unrealizedgains and losses on short term investments, afterdeduction of deferred income taxes, are recordedunder the shareholder’s equity. US GAAP allowsthat thenetunrealizedgainsand lossesonshortterminvestmentsarerecordedintheshareholder’sequity as part of the accumulated net othercomprehensiveincome.Thesaleproceedsofthesesecuritiesavailableforsale,shallberecordedbyadebittocash,andacredittoremovethesecurityatitsmarketvalue.Theothercomprehensiveincome,representingtheunrealizedgainorlossatthedateofsale is reversed intoearnings,andthedeferredtaxaccountsareadjusted.

Accounts receivableReceivables are recorded at their nominal valueand,ifnecessary,anallowanceismadefordoubtfulaccounts.

InventoriesCrude oil and refined products’ inventories atperiod end are valued at the lower of either cost ormarket value. Cost comprises all direct purchasecosts, attributable operating expenses includingdepreciationandallocatedoverhead.

Drillingsuppliesandothermaterialsarerecordedattheweightedaveragecostpriceorlowermarketvalue.Thecostpriceconsistsofthepurchasepriceplusanallowanceforimportandtransportationcosts.

V notes to the Condensed Interim Consolidated Financial Statements

Half-Year Report 2017 21

If necessary, a provision for obsolete inventory istaken into consideration and deducted from theinventory. Ordered goods have been recordedat purchase value and only the goods that are intransit at balance sheet date are recorded on thebalancesheet.

Participation in joint venturesTheparticipationinJointVenturesisrecordedatcost.

Equity investmentsEquity investments are accounted for using theequitymethod.

Intangible AssetsGoodwillTo the extent that the cost of acquiring an equityinvestmentexceedsthefairvalueofthenetassetsacquired, the excess is recorded as goodwill. Ingeneralgoodwill isevaluated for impairmentonatleastanannualbasis.

Other intangible assetsThisrelatestocapitalizedcomputersoftwarewithafinitelifewhichisvaluedatcostandamortizedonastraightlinebasis over theestimateduseful life.Capitalizedsoftwareincludesinternalandexternalcostsincurreddirectlyrelatedtotheimplementationof the software. We make judgements aboutthe recoverability of purchased finite livedintangible assets whenever events or changes incircumstances indicate that an impairment mayexist.Recoverabilityoffinitelivedintangibleassetsismeasuredbycomparingthecarryingamountoftheassettothefuturediscountedcashflowsthattheassetisexpectedtogenerate.Ingeneralotherintangibleassetsareevaluatedforimpairmentonatleastanannualbasis.

Property, plant and equipment

Exploration and production developmentStaatsolieutilizesthesuccessfuleffortsmethodtoaccount for expenditures incurred on explorationand production activities. Exploration costsincurred (drilling costs and material fixed assets)are initially recorded under projects in progress,pending determination of whether the wells foundprovedreserves.

If proved reserves are found, the recorded costsof drilling the well are reclassified to EvaluatedpropertiesandamortizedonaUPMbasis.

CostsarealsorecordedunderProjectsinprogressfor exploratory wells that have found crude oilreserveseven if the reservescannotbeclassifiedasprovedwhenthedrillingiscompleted,providedthat the exploratory wells have found a sufficientquantity of reserves to justify its completion asa producing well and the company is makingsufficientprogressassessingthereservesandtheeconomicandoperatingviabilityoftheproject.Theevaluation of the exploratory wells is made twicea year. Exploratory well costs not meeting thesecriteriaor if thecompanyobtains information thatraises substantial doubt about the economic ofoperationalviabilityof theproject, theexploratorywell would be assumed to be impaired, and itscosts,netofanyresidualvalue,wouldbechargedtoexpense.

Oil propertiesThe costs of production development such asdrilling,testingandcompletionofdevelopmentwellsare capitalized, notwithstanding if these wells aresuccessfulornot.Capitalizedcostsconsistof thepurchasepriceofmaterialsandservices,includingthe company’s internal services. Capitalized costsfor wells, equipment and production facilities aredepreciatedusingtheUnitofProductionMethod.

All costs for development wells, related plant andequipment,andrelatedassetretirementobligation(ARO)arecapitalized.Capitalizedcosts relating toinvestments in the oil field, including productivelandproperties,aredepreciatedbasedontheUnitofProductionMethod(UPM),generallybyindividualfield, as the proved developed reserves areproduced.TheUPMfactorisderivedfromtheyearoilproductionandtherelatedproveddevelopedoilreserves.

Refinery, power plant and other fixed assetsTherefinery,powerplantandotherfixedassetsarevaluedatcost.Thecapitalizedcostsoftheseassetsaredepreciatedonastraightlinebasis,taking intoaccounttheestimatedusefullifetimeoftheassets.

Projects in progressProjects in progress relates to work in progress,for which at the date of completion the cost iscapitalizedtotheappropriatecategoryofpropertyplant and equipment. Projects in progress is notdepreciated.

22Confidence in Our Own Abilities

Capitalized borrowing costInterest costs incurred to finance expendituresduring the construction phase of multiyearprojects are capitalized as part of the historicalcost of acquiring the constructed assets. Theproject construction phase commences with thedevelopment of the detailed engineering designand ends when the constructed assets are readyfor their intended use. Capitalized interest costsare included inproperty,plantandequipmentandaredepreciatedovertheservice lifeoftherelatedassets. Capitalized interest costs can also beincludedinequityinvestments.

Impairment of property, plant and equipmentThecarryingvaluesofproperty,plantandequipmentarereviewedforimpairmentwheneventsorchangesin circumstances indicate that the carrying valuemaynotberecoverable.Ifanysuchindicationexistsandwherethecarryingvaluesexceedtheestimatedrecoverableamounts,theassetsofcashgeneratingunitsarewrittendowntotheirrecoverableamount.

Current liabilitiesThis relates to shortterm obligations which arepayablewithinoneyear,andare recordedat theirnominalvalues.

Loan and debt arrangement fees The term loan and the bonds are recorded athistorical cost. US GAAP requires that debtarrangement fees which consist of the upfrontfees and consultancy costs should be capitalizedandamortizedasexpenseoverthedurationoftheloan.The loans are presented net of unamortizeddebt arrangement fees. The outstanding balanceof loan which is payable within one (1) year fromthe balance sheet date is presented as shorttermliabilities, and the remaining balance is presentedaslongtermliabilities.

Deferred income taxesIncome tax expense comprises both current taxanddeferredtax.Deferredtaxassetsandliabilitiesare recognized for the future tax consequencesattributable to differences between the financialstatement carrying amounts of existing assetsand liabilities and their respective tax bases, andoperatinglossandtaxcreditcarryforwards.

Deferredtaxassetsandliabilitiesarecalculatedusingenacted tax rates thatwillapply to taxable incomein the years in which those temporary differences

areexpectedtoberecoveredorsettled.Theeffectondeferredtaxassetsandliabilitiesofachangeintax rates is recognized in theperiod that includesthe enactment date. A valuation allowance isprovided if it ismore likely thannot thatdeferredtaxassetsmaynotberealizedinfull.

Inassessingtherealizabilityofdeferredtaxassets,management considers whether it is more likelythannotthatsomeportionorallofthedeferredtaxassetswillnotberealized.Theultimaterealizationof deferred tax assets is dependent upon thegeneration of future taxable income during theperiods in which those temporary differencesbecome deductible. Management considers thescheduled reversal of deferred tax liabilities,projected future taxable income, and tax planningstrategiesinmakingthisassessment.

Provision for dismantlement and abandonment / Asset Retirement obligations This provision regards the expected costs of thedismantlement of the production field, the relatedproduction facilities, the pipelines (Saramacca‑ToutLuiFaut),therefineryandthepowerplant.Thecalculation of this provision is based on the cashvalueoftheestimatedfullcost,takingintoaccountanadjustmentfor inflation.USGAAPrequiresthatthe accretion expense resulting from the changein the passage of time in the asset retirementobligation (ARO) should be recorded as periodcost in the incomestatementunder theoperatingexpenses.The allocation of the cost for relatedproductionfacilities,forexampleproductionfields,isbasedontheUnitofProductionMethod.The allocation of the costs for the other tangiblefixed assets is based on the straightline method.Theperiodforallocationisbasedontheexpectedmomentofdismantling.

Provision for pensions and other postretirement benefits (OPEB)This provision includes the unfunded accruedpensionbenefitrelatedtothehealthcareplanandtheinsuredpensionplan.Thedeterminationofthisprovision is based on an independent actuarialevaluation.

Provision for environmental riskLiabilities related to future remediation costs arerecorded when environmental assessments orcleanupsorbothareprobableandthecostscanbereasonablyestimated.

Half-Year Report 2017 23

According to Staatsolie’s policy, which is basedon international accepted Environmental, HealthandSafety(EHS)standardsforpetrolstationsandnational regulations (NIMOS), an environmentalprovision is recorded for GOw2 Energy SurinameN.V.. The environmental provision is measuredat the expected value of future cash flows. Theexpected value is not discounted to their presentvalue,because thediscountedpresentvaluedoesnotsignificantlydeviatefromtheexpectedvalue.

Earnings per Share Since Staatsolie has a simple capital structurewith no potential common shares, only the basicearningspershareapplies(EPS).Thecalculationisbasedonincomeavailabletocommonstockholdersdivided by the weighted –average number ofcommonsharesoutstandingduringtheperiod.

RevenuesRevenuesconsistofthesalesofpetroleumproducts,electric energy and trade activities of petroleumproducts. Petroleum products are generally beingsold under shortterm agreements at prevailingmarket prices. In some cases, products may besold under longterm agreement with periodicpriceadjustments.Revenuesarerecognizedwhenproducts are delivered, which occurs when thecustomer has taken title and has assumed therisks and rewards of ownership, prices are fixedor determinable and collectibility is reasonablyassured.

The difference between the opening and closinginventory balance of finished products for sale aswell as for internal use is recorded as ‘Inventoryvariation’.

ExpendituresExpendituresarerecognizedintheyearinccurred.All costs relating to production, includingmaintenance and repair of production equipment,are accounted for as production costs (‘liftingcosts’),andareexpensedasincurred.The costs of the trading activities and electricenergyarerecordedas‘otheroperationalcosts’.

Income taxIncometaxexpensecomprisesbothcorporationtaxanddeferredtax.Incometaxesarecomputedonthefinancialresultsasshownintheincomestatement.

TheconsolidatedfinancialstatementsarepreparedinaccordancewithUSGAAPforoilandgasindustriesin particular.With regard to the accounting policyof Staatsolie the new standards/amendmentsof2015havebeenevaluated.Asa result thenewstandards/amendmentsof2015arenotapplicable,orwhereapplicable theadoptionof thestandardsdid not have a material impact on the company’sfinancialstatements.

Certainaccountsin2016havebeenreclassifiedtoconformwith2017presentation.

4 trade receivables

The trade receivables amounting to US$ 126.1million(2016:US$108.3million)includeaprovisionfordoubtfulaccountsofUS$ (6,252,789)ofwhichUS$(5,755,704)forStaatsolieandUS$(497,085)forthesubsidiaries(2016:US$5,702,774forStaatsolieandUS$497,085forthesubsidiaries).

On14November2014Staatsolieenteredaslimitedpartnerwithaninterestof25%intothepartnership‘Suriname Gold Project C.V.’. Newmont SurinameLLC,asubsidiaryofNewmontMiningCorporation,isthemanagingpartnerwitha75%interestinthispartnership.The Suriname Gold Project C.V. encompasses theexploration, development and exploitation of thegoldmine‘Merian’,whichisagolddepositlocatedintheeasternpartofSurinameclosetotheFrenchGuyana border. Construction of the Merian Goldproject (thecurrentmine)beganafter the rightofexploitation was granted. Suriname Gold ProjectC.V. commenced commercial gold productionOctober1,2016.

2 Accounting Standards and Interpretations

3 Reclassification of Financial Statements

5 participation in Suriname Gold project CV

24Confidence in Our Own Abilities

Taken into account the structure and control ofthispartnership,Staatsolie’s interest isaccountedatnetequityvalue.Theparticipationamounted toUS$ 295,026,979 as at 30 June 2017 (2016: US$305,655,621); a positive result from participatinginterests of US$ 22,640,555 in 2016 and theGovernment contribution amounted to US$67,252,948(2016:US$63,087,065).

ThecontributionoftheGovernmentofSurinameisbasedontheir intenttoacquirenotmorethan5%of Staatsolie’s participation interest in SurinameGoldProjectC.V.ThecontributionisrecognizedasacurrentaccountwithGoS.TheparticipationinSurinameGoldprojectCVasat30June2017,wasbasedonunauditedfigures.

6 Deferred tax assetsAs at June 30, As at Dec 31,

2017 2016Inventorysubsidiaries 97 ‑

Gains/lossesinvestmentinpensionplan 16,775 16,754

Gains/lossesfromshares (675) (692)

Net deferred tax asset/(liability) 16,197 16,062

7 Bond

Thefiveyear7%unsecuredcouponbondmaturedon May 14, 2015. On this day Staatsolie issued asecondfiveyear7.75%unsecuredcouponbondandraised US$ 99.1 million.The maturity date of thissecondbondisMay14,2020.Interestwillbepaidsemi‑annually on May 14 and November 14 eachyear.

AsofJune30,2017,unamortizeddebtarrangementfeesamountedtoUS$0.6million.Theamortizationof debt arrangement fees for the reporting periodof2017amountedUS$0.1millionandispresentedunder financial expenses under the company’sincomestatement.

8 term Loans

DSB loan facilityThis regards a bullet loan of € 8.7 million obtainin June 2016.The maturity date of the loan is 30December 2017. The interest is being paid on aquarterly basis. A parcel of land was given as acollateraltothebank.

Secured long term loanOn September 28, 2015 Staatsolie refinanced theCorporate loan for the total amount of US$ 600million. The total loan amount consists of US$575milliontermloanandUS$25millionrevolvingloan.Repaymentofthetermloanisplannedfor13quarterly installments, to commence in the fourthquarterof2016.OnNovember16,2016Staatsolierefinancedandprepaid theCorporate loan for thetotal amountofUS$294million.Thisprepaymentincluded the first quarterly installment of 2016.TheoutstandingCorporateloanasofJune30,2017amounted to US$ 286 million. The outstandingamountconsistsofUS$261milliontermloanandUS$25million revolving loan.AnewamortizationscheduleisagreedandthelastrepaymentisdueinNovember2019withabulletpayment.

Withregardtothetermloan,thefinancialinstitutionsrequired security for Staatsolie’s paymentobligations. The security mainly consists of theoffshorereceivablesandthereceivablesoutoftheMerianGoldProject.Staatsoliealsohastocomplywithseveralaffirmativeandnegativecovenants.AsofJune30,2017Staatsolieisincompliancewiththecovenantsoftheloanagreement.

Half-Year Report 2017 25

AsofJune30,2017,unamortizeddebtarrangementfeesamountedtoUS$8.3million(2016:US$10.0million).Theamortizationofdebtarrangementfeesfor the reporting period of 2017 amounts US$ 1.7million (2016: US$ 3.2 million) and is presentedunder financial expenses under the company’sincomestatement.

Loan SPCSIn September 2013, SPCS closed a seven (7) yearterm loan with Credit Suisse for the expansion ofthepowerplant.November172014,SPCSrestatedandamendeditscreditagreementofUS$74milliontoUS$120million.TheoutstandingloanasofJune30,2017amountstoUS$90million.Repaymentoftheloanisplannedfor24quarterlyinstallments.In2017,US$10millionwasrepaid.ThematuritydateoftheloanisinNovember,2021.

Staatsolie acts as guarantor for this loan and willmake the repayments in US dollars. As collateral

thebankrequested100%ofSPCS’sfixedassets,allrights and benefits gained in the Power PurchaseAgreement (PPA) as well as the establishment ofvariousoffshorecollateralaccounts.

AsofJune30,2017,unamortizeddebtarrangementfees amounted to US$ 2.0 million (2016: US$ 2.2million).Theamortizationofdebtarrangementfeesfor the reporting period of 2017 amounts to US$0.2million(2016:US$0.5million)andispresentedunderfinancialexpensesinthecompany’sincomestatement.

Loan Government of SurinameInnovember2016StaatsolierefinancedthesecuredlongtermbankloanwithanunsecuredloanfromthegovernmentofSuriname.TheloanamountstoUS$261 million and bears 9.25% interest and a bulletrepayment in november 2026. The first interestpaymentofUS$12millionwasonApril26,2017.

9 provision for pensions and other postretirement benefitsAs at June 30, As at Dec 31,

2017 2016Unfundedaccruedpensionbenefits,insuredpensionplan 595 596

Unfundedaccruedpensionbenefits,healthcareplan 16,154 15,441

16,749 16,037

10 provision for pension plan

The provision for pension plan to the amount ofUS$ 34,261,723 (2016: US$ 34,233,686) includesanamountofUS$103,895(2016:US$112,324)forGOw2EnergySurinameandUS$34,157,828(2016:US$ 34,121,362) regarding the accrued pensioncost related to the pension plan for Staatsolieemployees, which is managed by the ‘StichtingPensioenfonds voor Werknemers van StaatsolieMaatschappijSurinameN.V.’.

Pensions and other postretirement benefits Staatsoliemaintains3planswithregardtopensionsandpostretirementbenefits:• The pension plan for employees, which is

managedbythe‘StichtingPensioenfondsvoorWerknemers van Staatsolie MaatschappijSurinameN.V.’;

• Theinsuredpensionplan;• The unfunded health care benefit plan for

retiredpersonnel.

PENSION BENEFITS HEALTH CARE

Jan‑June 2017 2016 2017 2016

Employer’scontribution (2,532) (2,444) ‑ ‑

Employee’scontribution (844) (815) ‑ ‑

26Confidence in Our Own Abilities

Segment reporting Staatsolie (x US$ 1,000)

Segment(Revenues) Jan-Jun 30 Jan-Jun 30

2017 2016

Upstream 129,109 76,687

Refining&Marketing 171,257 42,737

Trading 75,231 87,954

Energy 31,823 17,293

Total Segment amounts 407,420 224,671

AllCorporateactivities(includingeliminations) (202,859) (53,904)

Total consolidated amounts 204,561 170,767

Staatsolie’s business covers integrated activitiesregarding the oil and energy industry. Theseactivities are defined into the following operatingsegments: upstream, downstream, trading andenergy. As defined in the accounting standardfor segment reporting ASC 280, these operatingsegmentsarethecompany’sreportablesegments.The upstream is responsible for exploring,developing, producing and transporting crude oilto the refinery.The downstream is organized andoperates to refine the crude oil, market, sell, anddistribute the oil products. The trading segmentinvolves trading fuel products and selling theseproductstowholesaleandretailaswellasbunkeringcustomers.

The energy segment operates the 96 megawattthermal power plant and delivers the electricpower to the single source customer, the nationalelectricitycompanyEBS,forfurtherdistribution.Thesefunctionshavebeendefinedastheoperatingsegments of the company because they are thesegments (1) that engage in business activitiesfromwhichrevenuesareearnedandexpensesareincurred; (2)whoseoperatingresultsareregularlyreviewed by the board of executive directors tomakedecisionsaboutresourcestobeallocatedtothesegmentandassessitsperformance;and(3)forwhichdiscretefinancialinformationisavailable.ThecorporatesegmentconsistsofPetroleumContracts,BusinessDevelopment,SurinameGoldProjectC.V.andallothercorporateadministrativefunctions.

PEnSIonbEnEfItS PEnSIonbEnEfItS HEAltHCARE

Jan‑June 2017 2016 2017 2016 2017 2016

Servicecosts (3,579) (3,223) (14) (16) (624) (453)

Interestcosts (3,129) (2,811) (14) (14) (487) (361)

Returnonassets 3,504 3,118 ‑ ‑ 208 197

Unrecognizedtransitioncosts (11) (11) ‑ ‑ (61) (60)

Unrecognizedpriorservicecosts (88) (88) ‑ ‑ ‑ ‑

Unrecognizedgains/losses (798) (806) 32 25 (9) 7

net pension costs (4,101) (3,821) 4 (5) (973) (670)

11 Segments and related information

Half-Year Report 2017 27

Segment (Profit/ (Loss) Jan-Jun 30 Jan‑Jun30

2017 2016

Upstream 82,569 33,003

Refining&Marketing (23,402) (30,160)

Trading (1,124) (1,030)

Energy 3,993 4,001

Total Segment amounts 62,036 5,814

AllCorporateactivities(includingeliminations) (35,780) (23,516)

Total consolidated amounts 26,256 (17,702)

Segment (Assets) Jan-Jun 30 Jan‑Jun30

2017 2016

Upstream 537,457 478,014

Refining&Marketing 1,100,567 1,163,365

Trading 67,133 66,978

Energy 210,834 152,163

Total Segment amounts 1,915,991 1,860,520

AllCorporateactivities(includingeliminations) 435,909 404,518

Total consolidated amounts 2,351,900 2,265,038

Major customersRevenuesfromonecustomerofthedownstreamsegmentrepresentapproximatelyUS$24.3million(2016:US$21.7million)ofthecompany’sconsolidatedrevenues.

12 off balance commitments and contingencies As at June 30, 2017 the off balance commitments and contingencies consist of the following:

2017 2018-2022 TOTAL

JuneLong‑term(sales)contracts 87,392 242,277 329,669

Long‑termrefineryexpansioncontract 1,070 2,160 3,230

Operationallease 7,136 5,360 12,496

Claims (1,905) ‑ (1,905)

Studygrants 194 585 779

Corporatesocialinvestments 127 97 224

Othercontracts 3,387 2,772 6,159

28Confidence in Our Own Abilities

13 net revenues per product Jan-Jun 2017 Jan‑Jun2016

XUS$1,000 X1,000BBLS X1,000BBLS

Localrefinedproducts 2,822 171,257 2,954 114,820Intracompanysales (934) (61,254) (1,052) (43,885)Localrefinedproducts(net) 1,888 110,003 1,902 70,935Tradingactivities 885 69,921 1,154 80,304Electricenergy*) 24,331 17,293

2,773 204,255 3,056 168,532Othersalesrelatedrevenue

‑inventorychangeoilstock 168 939‑otherrevenues 138 1,296Totalgrossrevenues 2,773 204,561 3,056 170,767

*)ThegeneratedelectricenergyasatJune2017is168,808,486kWh.(June2016:178,078,166kWh).

14. Income tax chargesTheincometaxcomprisesof Jan - Jun 30 Jan - Jun 30

XUS$1,000 2017 2016

Currenttaxexpenseorbenefit 13,756 2,924

Deferredtaxexpensesorbenefit 22 ‑

13,778 2,924

Jan - Jun 30 Jan - Jun 30Reconciliation statutory with effective tax rate 2017 2016

Surinamestatutoryincometaxrate 36% 36%

Effectofunrecognizedcredits ‑ ‑

Effectivetaxrate 33% 13%

Tax losses carry forwardVentrinhasaccumulatedtaxlossesofapproximatelyUS$14.9million(2016:US$15.2million)availableforoffsetagainstfuturetaxableprofits.TheselosseshavenoexpirydateinTrinidadandTobago.

Half-Year Report 2017 29

1. Adoption of Financial Statements of the preceding Fiscal Year

The2016FinancialStatementswereadoptedattheGeneralMeetingofShareholdersheldonJune30,2017and includedManagement’sproposal for theappropriationofthe2016profit.

VI other information

Contact Information

Head OfficeDr.Ir.H.S.Adhinstraat21POBox4069T+597499649F+597491195www.staatsolie.comEinfo@staatsolie.com

Downstream OperationsSirWinstonChurchillweg79T +597480501F+597480811

Upstream OperationsGangaramPandaywegkm5½T +597375222F +597491105

SUBSIDIARIES

GOw2 Energy Suriname N.V.Van‘tHogerhuysstraat27AParamaribo|SurinameT+597403111F+597402116Einfo@gow2.com

Staatsolie Power Company Suriname N.V.SirWinstonChurchillweg79T+597485163F+597485178

Ventrin Petroleum Company Ltd.(TrinidadandTobago)AtlanticPlazaPortPointLisasCouvaTrinidadandTobagoT +18686792962F +18686792622

www.staatsolie.com www.facebook.com/staatsolie