Liquis et ped mod qui vollabo. Hendi bea natiur | Svenska Annual Review 2018 | 1

Annual Report2019

SVENSKA PETROLEUM EXPLORATION

2 | Svenska Annual Review 2018 | Liquis et ped mod qui vollabo. Hendi bea natiur

Liquis et ped mod qui vollabo. Hendi bea natiur | Svenska Annual Review 2018 | 3

ContentsCompany OverviewBusiness StrategyCEO’s CommentExplorationOperational Update: NigeriaOperational Update: Guinea-BissauOperational Update: The Ivory CoastSupporting the OrganisationCSRHSEQOur History

410121416182024262832

Business ReviewFinancial ReportSigned by the Board of DirectorsAudit ReportBoard of DirectorsExecutive ManagementTerms and DefinitionsAddresses

37429293969798

101

SVENSKA’S SHARE OF RESOURCES AND RESERVES, DISCOVERIES AND PRODUCING ASSETS

Svenska’s interest

Oil (mmbo)

Gas (bcf)

Total (mmboe)

DISCOVERY OR PROJECT

Guinea-Bissau

Sinapa East1 70.71% 7.6 8.5 9.1

Ivory Coast

Kossipo2 27.39% 13.3 10.7 15.2

Baobab (Phase 5)2 27.39% 11.4 5.8 12.4

Baobab (Future potential)2 27.39% 19.3 12.4 21.5

Nigeria

Uge1 21.05% 58.7 51.6 67.9

Total Discoveries 110.4 88.9 126.2

PRODUCING FIELDS

Ivory Coast

Baobab2 27.39% 24.1 10.8 26.0

Total Reserves 24.1 10.8 26.0

Totals in boe calculated by Svenska using a conversion factor of 5.615 mscf/boe.1. Discovery or Project: Operator 2. Discovery or Project: Svenska

4 | Svenska Annual Report 2019 | Company Overview

The Year in Review Svenska Petroleum Exploration AB (Svenska) is

a privately held Swedish company engaged in finding and producing oil and gas. Our exploration activities take place in the hydrocarbon-rich

basins of West Africa. Our production in 2019 came from the Ivory Coast. Svenska is wholly owned by Petroswede AB, which in turn is indirectly owned by Sheikh Mohammed H. Al-Amoudi.

MAIN EVENTS IN 2019The year of 2019 has financially been a good year, but also a year of disappointments. We have been working hard preparing to start the drilling in Guinea-Bissau but thePresidential election process has hampered our efforts. We need a Presidential decree before we can start, andhopefully it will be in place early 2020. In the Baobab field in the Ivory Coast we have drilled

four new wells and an appraisal well to continue delivering profitable production, approximately 26,500 bbl/day. We have also drilled a successful appraisal well in the Kossipo discovery, planned as a tie-back to Baobab.  In Nigeria we have faced a serious setback. New regulations that have been imposed, adding additional royalty, will make investments uneconomical. During 2019 Svenska has continued its efforts to find and invest in new ventures for both exploration and for production. Our core areas are still West Africa and countries such as the Republic of the Congo, Gabon and Cameroon, but due to the complex political situation we are also starting to look at new areas. We have started a process of rescreening parts of East Africa, mainly in Tanzania and Mozambique. Another interesting area that is still in a very early stage is Latin America, where we can see many similarities to West Africa from a geological perspective.

Company Overview | Svenska Annual Report 2019 | 5

OIL RESERVES BY FIELD OIL RESOURCES

44.6% Uge

39.4% Baobab and Future Phases

10.0% Kossipo South

6.0% Sinapa East

100% Baobab

6 | Svenska Annual Report 2019 | Financial Overview

SVENSKA IN BRIEF | EXECUTIVE MANAGEMENT

AVERAGE OIL PRICE DEVELOPMENT (USD/BBL) NET SALES, EBITDAX & OPERATING INCOME (USD THOUSANDS)

DUNCAN RUSHWORTH Manages and develops Svenska’s licence portfolio while developing and maintaining Svenska’s industry network.

VP BUSINESS

DEVELOPMENT

LARS SCHENNINGS Manages Finance Operations, Taxes, Corporate Finance & Planning, Insurance & RM, Investments, Legal and IT strategy.

CFO & VP BUSINESS SUPPORT

ARLENE DAVITT Manages the development and production of Svenska’s assets while leading the Reservoir & Facilities Engineering team.

VP DEVELOPMENT & PRODUCTION

JOEL FLITTON Manages the Company’s exploration activities. Provides licence managers, project teams and Business Development with geological and geophysical support.

VP EXPLORATION

PRESIDENT AND CEO FREDRIK ÖHRN

SVENSKA PETROLEUM EXPLORATION AB

100%

80.0

60.0

40.0

20.0

0.0

See full list of Group companies on page 90.

2015 2016 2017 2018 2019

Total net sales EBITDAX Operating income

2015 2016 2017 2018 2019

200.000

150.000

100.000

50.000

0

SPE Nigeria AB

SPE Guinea-Bissau AB

Svenska Petroleum Exploration

UK Ltd(In liquidation)

Petroswede Insurance Company

DAC

Oljepros-pektering AB

(OPAB)

SPE CI Holding AB

SPE CI AB

SPE CI Finance AB

SVENSKA IN BRIEF | LEGAL STRUCTURE

2015

2.0

4.0

1.0

3.0

2015 2016 2017 2018

100

200

250

50

150

2016 2017 2018

Sinapa

Uge

Kossipo

Baobab (incl. future potential)

2019 2019

Financial Overview | Svenska Annual Report 2019 | 7

FIVE-YEAR OVERVIEW

PRODUCTION (mmboe) RESOURCES DEVELOPMENT (mmboe)

Baobab

(USD thousands) 2015 2016 2017 2018 2019

Total net sales 103,164 171,206 141,354 172,426 191,499

EBITDAX 81,002 78,570 83,292 123,746 120,247

Operating income 22,655 29,848 45,530 87,846 75,918

Net income 11,352 -9,648 31,063 55,125 41,894

2015 2016 2017 2018 2019

Operating cash flow 24,098 48,356 71,260 89,688 118,001

Investments -138,952 2,736 -24,887 -80,272 -71,064

2015 2016 2017 2018 2019

Operating margin 22.0% 17.4% 32.2% 50.9% 39.6%

Net margin 11.0% -5.6% 22.0% 32.0% 21.9%

Net debt/equity ratio 0.29 0.16 0.07 0.06 0.08

Equity/assets ratio 0.58 0.67 0.75 0.75 0.74

2015 2016 2017 2018 2019

Return on equity 2.2% -1.9% 5.8% 9.5% 8.0%

Return on average capital employed 2.8% 3.9% 6.5% 12.4% 10.0%

2015 2016 2017 2018 2019

Oil production (mmbo) 1.5 3.0 2.4 2.4 2.9

Average production (mbopd) 4.2 8.2 6.6 6.6 8.0

Resources/production ratio 77 48.1 76.6 75.8 41.6

EBITDAX/bbl 54.0 26.2 34.7 51.6 41.4

Definitions used in five-year overview

EBITDAX: Earnings Before Interest, Taxes, Depreciation, Depletion, Amortisation and Exploration Expenses

Operating margin: Operating income/ Total net sales

Net margin: Net income/Total net sales

Net debt/Equity ratio: Interest-bearing senior debt less cash & cash equivalents/equity

Equity/Asset ratio: Equity/Total assets

Return on equity: Net income/Average equity for the year

Return on capital employed: EBIT/Capital Employed

Resources/production ratio: The remaining lifespan of known resources (net resources + reserves) given current production

8 | Svenska Annual Review 2018 | Liquis et ped mod qui vollabo. Hendi bea natiur

LATVIA: 229 (3%)

GUINEA-BISSAU: 5,725 (77%)

NIGERIA: 1,300 (18%)

IVORY COAST: 170 (2%)

LICENCE ACREAGE AT YEAR END 2019(SQUARE KM)

LICENCES GUINEA-BISSAU70.71% interest in Block 2 (Sinapa)

70.71% interest in Blocks 4A and 5A (Esperança)

/ OUR LICENCES

Liquis et ped mod qui vollabo. Hendi bea natiur | Svenska Annual Review 2018 | 9

LICENCES IVORY COAST

27.39% interest in Block CI-40

LICENCES NIGERIA

21.05% interest in OML 145

LICENCES LATVIA

90% interest in licence E-24 (Dalders)

Office

10 | Svenska Annual Report 2019 | Business Strategy

Following the sale of our Norwegian assets and the redevelopment of the Baobab field in the Ivory Coast, Svenska has shifted its focus to West

Africa. The ambition going forward is to broaden our production base by increasing our current production and adding producing assets. We continue to be an exploration company and are looking for attractive oil exploration assets in our core areas of interest. Svenska continues to have a strong focus on capital discipline.  Host governments experience more efficient allocation of their resource base when partners participate on an equal footing to enhance the value of

the respective licences.  Our goal is to achieve a balance between exploration and production. We believe value is created through the right and timely conversion of our resource portfolio into producing assets. We are continuing our efforts to transform the Company into a modern exploration and production company with material discoveries heading for development. Our past exploration and appraisal successes confirm that our approach is working. As a hard-working and respected partner, Svenska is well-positioned to build value organically and by acquisition. We believe our reputation as a partner adds value to our assets and helps the Company grow.

 A flat yet dynamic corporate structure efficiently connects expertise in London and Stockholm and Bissau using modern communication systems, frequent dialogue and up-to-date tools. A management group providing decades of international experience guides our teams working in several of the world’s richest petroleum basins. Consolidating our existing offshore portfolio and entering new onshore regions is a priority for Svenska. The quest to find high-value licence stakes has become a recruiting advantage, as talented staff find rewards overseeing licences and assimilating experience from international projects.

Svenska’s Business StrategyBy being an active operator and partner in West Africa, Svenska strives to add value for all our stakeholders. Our ambition is to use our expertise to go in-depth on technical matters, adding our knowledge and experience to that of our stakeholders & partners.

/ STRATEGY

VISIONSvenska’s vision is to become a leading international black oil exploration and production company with a strong presence in West Africa. The Company will secure growth through a balance of E&P assets, play types and geographic spreads.

TACTICSSvenska’s short-term objective is to diversify our producing base while securing new proven reserves. In the medium and long term, the aim is to manage assets and secure new resources through acquisitions, farm-ins and licence rounds in order to complement investments in low-risk exploration, discoveries and early stage developments.

MISSIONSvenska is delivering growth and value for our owner, employees and partners. We strive to maintain the highest standards of safety and working conditions while committing to minimise the environmental impact of our operations. Svenska’s ambition is to establish ourselves as partner of choice for our host countries, licence partners and employees.

MARKETINGSvenska markets its production to a wide range of major oil companies on an arm’s length basis.

STRATEGYSvenska will focus on finding and developing high-value assets where our local knowledge, commercial strength and technical expertise can add and protect value.

ORGANISATIONSvenska’s staff have largely geoscientific backgrounds. In a deliberate pattern of support across the Company, operations and management personnel in our international offices interact to provide instantly accessible expertise.

On the positive side we see that the Baobab field in the Ivory Coast is still producing in line with last year. We have finished our drilling campaign and brought four new wells into production during 2019. We also

drilled a successful appraisal well in Kossipo North, which is planned to be tied back to the Baobab FPSO which should provide a very efficient production solution.  At the end of 2018 we reached a production of 30,000 bbl/day, and during 2019 we have averaged a production of approximately 26,500 bbl/day. Despite some minor production issues, the overall production level has strengthened the Company and given us good profits and a strong balance sheet.

A HIGH 99% UPTIMEOur Baobab FPSO, that we are leasing from the Japanese company Modec International Inc., is 15 years old, but we have managed to maintain an uptime of over 99 per cent during the past year – which is extraordinary. A major effort was made in 2018 to ensure the integrity of the asset and with the Baobab Life Extension Project ongoing we believe we should be able to maintain this level of productive time.

OBSTACLES IN GUINEA-BISSAUThe long-awaited Atum-1X well in the Sinapa licence in Guinea-Bissau was planned to spud in 2019. With a farm-out of part of our interest agreed we were well set to start drilling the well but the political situation in country has

caused delays. The parliamentary elections early 2019 and the time taken to form a new government delayed the commencement of the approval of the transfer documents until late summer. Following the approval by the Council of Ministers the President of the Republic of Guinea-Bissau is required to promulgate the decree. This got caught up in the presidential elections at the end of the year. With a new president in place we hope it can be obtained early 2020. Frustrating, but we learned long ago that at times you need patience operating in this region.

NIGERIA – HALTING THE WHOLE INDUSTRYThe Uge field continues to tease us. With the volumes in place it has the potential to be developed into a major oil field. What would have had the potential for a fast development anywhere else in the world has been struggling with the reality of being located in Nigeria. There have been different perspectives on how to progress, with some of the Joint Venture wanting to move faster, however overall the focus over the past few years has been to find a solution that can make the project economic. Instead we reached a full stop in the project as the Nigerian government introduced new legislation which imposes a new royalty fee on all deepwater licences. With a substantial increase in the government take, the economics of the project are not attractive as it stands today. Together with our partners we are working to find a solution that works for us as well as the industry as a whole in Nigeria.

Focus and PatienceThe year of 2019 has been an exercise in patience and waiting; the challenge has been to keep our focus on preparing for future operations. Our production wells still produce according to expectations but the political situation and new regulations hamper our exploration objectives.

/ CEO’S COMMENT

12 | Svenska Annual Report 2019 | CEO´s Comment

A SOLID COMPANY LOOKING FORWARDSvenska is constantly seeking new opportunities. Our finances are in excellent shape and we can still find interesting opportunities to invest in. We are currently actively evaluating a number of countries and jurisdictions, and have spent a lot of time understanding the potential of regions such as the Republic of the Congo, Gabon, Cameroon and the MSGBC basin. This is a time when our industry is being challenged and we are seeing changes to the energy systems of the future. We will need to be part of this transition. As far as we can see there will still be need for our knowledge, and as a part of this we have strengthened our exploration team during 2019.  I wish to thank our professional and hardworking staff. The year 2019 has been financially strong, but in many ways a challenging, and to some extent frustrating year. However, Svenska has always worked for the long-term and we know that sometimes patience is our partner. To be present is sometimes the best way to prepare for future success. I would like to thank our owner, Sheikh Mohammed, and our Board, which have been an essential part of this prosperous year.

Stockholm, March 2020

FREDRIK ÖHRNCEO

CEO´s Comment | Svenska Annual Report 2019 | 13

ExplorationExploration activities during 2019 were focused on our operated licences in Guinea-Bissau and planning of the Atum-1X well, as well as ENV projects in our focus areas in West Africa. Delays outside of our control have hampered our activities, but we are looking forward to new challenges in 2020.

I t has been a tough year,” starts Joel Flitton, Vice President Exploration. “We have worked relentlessly to move our projects forward, securing a new partner in our Guinea-Bissau licences

through farm-down, things were looking really positive as we planned to start drilling Atum-1X in February 2019. Supported by our well management providers at EXCEED, well planning was at an advanced stage – then we got delayed by circumstances outside of our control.” The Guinea-Bissau presidential elections have dragged out in time but we now expect that the new President will be in place in early 2020. We then hope to have formal approval of the farm-out promulgated by Presidential decree which will enable us to continue well-planning activities – and hopefully commence drilling in September.  “The problem has been that to have everything in place for drilling, orders for long lead items have had to be made 6-12 months ahead of the planned well

spud date. And that’s a challenge when we don’t have clarity as to when that spud date may be,” Joel explains. “But we have high hopes for Atum-1X, a high-impact well that the industry will be following closely, and we are looking forward to drilling as soon as possible.” FURTHER EXPLORATION IN BAOBABDuring 2019 we completed the Phase 4 infill drilling campaign on the Baobab field in the CI-40 block, Ivory Coast. On the back of this campaign we drilled the Kossipo North appraisal well in May 2019 which was a great success. The well results have enabled us to gain a clearer understanding of the Albian play in CI-40, and prove up additional resources in the Kossipo area which we hope can be tied back to the Baobab FPSO.  “We are still looking into near-field exploration opportunities in CI-40. Our aim is to integrate the latest drilling results with our significant dataset to enable us to build on our understanding of the area,” says Joel. “It’s a low risk

project as we already have significant insight into the geology, are established in country and are partnered with a good operator – which makes everything much easier.”

OPPORTUNITIES FOR THE FUTURE During 2019 we actively screened blocks offered in the Republic of the Congo licence round, where we identified and high graded a number of potential opportunities but ultimately decided not to proceed with a bid. In Gabon we have an ongoing process where we are looking at participating in the latest licensing round. We are also progressing with negotiations with authorities in some of our core ENV focus countries with a view to securing additional exploration acreage. In addition, we are talking to various companies with whom we have strategic alignment in order to build working partnerships as we look to expand our exploration portfolio going forward.

“

/ EXPLORATION

14 | Svenska Annual Report 2019 | Exploration

NEW EXCITING OPENINGS FOR OUR ENV TEAM “We know our current areas of operation very well. We have been active in West Africa for many years, but it’s difficult to expand our activities – early entry costs have risen sharply. Consequently, our ENV team has started to explore new regions outside of our historic core areas in West Africa.”  “Our ENV team is rescreening parts of East Africa, mainly in Tanzania and Mozambique, to evaluate if there are opportunities that we can incorporate in our portfolio,” Joel continues. “We are keeping an eye on it, and are starting to try to get a better understanding of the above-ground challenges to see what is possible.”  There are also interesting opportunities in Latin America. As the conjugate margin to the West African Plate much of the understanding and insights we have gained working along

the transform margin, Aptian Salt basins and MSGBC Basin in Africa, is directly applicable to the basins in the northern and eastern margins of Latin America.  Regional screening is still at a very early stage and we have to implement thorough due diligence of the feasibility from many perspectives, starting with the above-ground risk.

FACING EXPLORATIONAL CHALLENGES “We are facing several explorational challenges during 2020, but meeting these challenges leads to opportunity. It’s exciting to start looking into new areas and regions. We have therefore strengthened our technical staff by hiring a new Exploration New Ventures Manager in Stockholm and two new technical experts in London. We are a strong team and I am looking forward to 2020, I believe it is going to be a very interesting year,” Joel Flitton concludes.

Joel FlittonVice President Exploration

Exploration | Svenska Annual Report 2019 | 15

16 | Svenska Annual Report 2019 | Nigeria

Big hopes were abruptly haltedLast year we were awaiting Nigeria’s Petroleum Industry Bill to be approved in order to start moving forward on OML 145. Instead the first ever change to royalties within the Deep Offshore and Inland Basin PSC Act has been approved. This has resulted in further challenges for Svenska and the oil and gas industry in Nigeria.

E arly 2019 hopes were high to finally be able to start moving Uge closer to development, with planning for acquisition of a 1,400 km2 3D seismic

survey underway and alternative development solutions under review. Uge, OML 145, is operated by Esso Exploration & Production Nigeria (Deepwater West) Ltd with Svenska, Chevron, Oando and NPDC as joint venture partners. The Uge Main discovery is located in the north-western part of the block in water depth of approximately 1,200 metres. It lies 50 km south-east of the large Shell-operated Bonga field complex in OML 118 and about 60 km east of Chevron’s Nsiko discovery in OML 140. The current estimated development base case indicates Estimated Ultimate Recoverable Reserves (EUR) of approximately 320 mmboe. The licence also contains three potential tieback candidates in the Uge North, Nza and

Orso discoveries. On Svenska’s initiative the joint venture undertook third-party feasibility studies covering subsea, flow assurance, floating systems, topsides and export routes, demonstrating that a technically feasible commercial solution existed. The JV partnership was aligned on the technical solution, and discussion is ongoing on evaluation and scheduling methodology. In parallel National Petroleum Investment Management Services (NAPIMS) have requested further studies to be undertaken with respect to a co-development of Uge and Nsiko located in the nearby OML 140. NAPIMS emphasised that the Federation is seeking increased activity and production from the petroleum sector but that Nsiko and Uge are too small to develop individually. They must be co-developed. This to ensure that the Federation receives an adequate take and to prevent the proliferation of

deepwater FPSOs. However, whilst the partnership was reconciling a strategy to respond to NAPIMS requirements, changes to the PSC Act in the Nigerian Parliament led to disappointing consequences for the development of Uge.

A TOUGH BLOW TO DEEP-SEA INDUSTRY INVESTMENTSIn November Nigeria’s President Muhammadu Buhari signed an amendment bill to the Deep Offshore and Inland Basin PSC Act. The bill removes the current water depth-based royalty and replaces it with a flat 10 per cent royalty on all deepwater PSCs. In addition a price-based royalty has been introduced adding 0–10 per cent depending on oil price. The impact to OML 145 is an increase in royalty from zero to 14 per cent, which effectively puts all investments on hold.

/ OPERATIONAL UPDATE NIGERIA

Nigeria | Svenska Annual Report 2019 | 17

1

 “It is difficult to see how significant deepwater investments will progress in the region currently. It will be even more challenging to operate in a financially healthy way,” says Arlene Davitt, VP Production & Development.

EVERYTHING PUT ON HOLDDiscussions are ongoing between the industry and the government of Nigeria, and hopefully some resolution can be reached to ensure projects move forward. 2020 will be a year that sets out the direction of future investments in Nigeria, and hopefully there will be a mutually acceptable outcome for the region and the industry. “Until then we will see a stalling of major investments in exploration and projects in the region. But I hope we will see a solution before the end of 2020,” ends Arlene Davitt.

Operator ExxonMobil and partners Chevron, Oando and Svenska each hold a 21.0526% interest in the OML 145 licence. The Nigerian Petroleum Development Company (NPDC) holds the remaining 15.7896%.

1. 21.05% interest in OML 145 / LICENCES NIGERIA

18 | Svenska Annual Report 2019 | Guinea-Bissau

Further DrillingPreparations

What we originally hoped would be a delay until 2019 has, due to the political power struggle in Guinea-Bissau, grown even longer. Hopefully the situation will be resolved in early 2020 so that the drilling can start later in the year.

During the spring of 2019 Svenska secured an agreement with the Joint Venture partners to change the well location. The well location was shifted from primarily targeting what is believed to be the Lower Albian reservoir to a location near the apex of

the Upper Albian target interval. The conundrum we were facing was that the two targets are laterally offset so there is no single well location where both target levels can be tested in an optimal well position.

ATUM-1X DRILLING PLANNING SUSPENDED UNTIL 2020 During the early part of the year a farm-out of equity to CNOOC West Africa Petroleum E&P was agreed. Due to parliamentary elections in March and a delay in the formation of a government until June, the approval by the Council of Ministers for the transfer documents was not obtained until late summer. Amendments to the agreement for Joint Venture Participation (AJVP) for both Sinapa and Esperança licences require a decree promulgated by the President of the Republic of Guinea-Bissau. Such decree is still outstanding at the end of 2019; the hope is that it will be obtained early in 2020, when a new President is inaugurated.  Simultaneously, we have been doing well-planning activities for Atum-1X and towards the end of the year this was progressed to a stage where detailed engineering is completed and Long-Lead Items procured. However, in November it was realised that due to continued lack of governmental approval well planning could not be progressed and neither could rig selection be done, hence it was decided to suspend the drilling preparations for three months. The ramp-up of drilling planning is now estimated to occur 1 March 2020 with drilling operations starting in September the same year. As a consequence, the well will be drilled close to the end of the current licence term, this situation needs to be mitigated by a further licence extension. In case we make a discovery which warrants further appraisal and commerciality declaration, more licence time is needed.

REPROCESSED 3D DATA AND SHALLOW-WATER EXPLORATIONThe 2010 3D data covering large portions of the Sinapa licence and which stretches into the Esperança licence has

been reprocessed with good improvement of the data quality, particularly at the Albian target level. Prospectivity in the shallow water portion of both licences will be re-evaluated using the reprocessed data. Future exploration targets may be located in the shallow waters of the licences and one well will need to be drilled in the Esperança licence to fulfil the drilling commitment in that licence.

EXPLORATION ACTIVITIES NEARBYIn the nearby area the licence holders of the adjacent Block 4B have acquired new 3D seismic data which form a contiguous 3D coverage with the Esperança 3D data over the Anchova structure. Currently no other exploration drilling in Guinea-Bissau waters is imminent, all other licence holders offshore Guinea-Bissau are awaiting the results of the Svenska-operated well.

OPERATED BY SVENSKASvenska farmed in to the Guinea-Bissau licences in 2007. When the previous operator, Premier Oil, decided to withdraw from the licences, Svenska assumed the operator’s role with an increased equity. The operator’s role involves responsibility for licence management, drilling activities and other technical work, as well as continuous liaison with the Guinea-Bissau authorities.  In August 2017, Svenska and the joint venture received a three-year extension from November 2017 to November 2020. The licence extension came with a larger equity for Svenska, as well as improved fiscal terms for water depths greater than 200 metres. Despite the somewhat unstable political situation in the country, long-term Swedish support has facilitated Svenska’s discussions with the authorities. The current as well as the previous regime have shown serious commitment to this project. “It’s frustrating to know that we have done everything possible to be prepared to start drilling – and then again be delayed by the political developments in Guinea-Bissau,” says Torgny Berglund, Senior Advisor. However, initial reports from the Presidential election do give hope for a change in President which would lay the foundation for an approval of the decree in 2020.

/ OPERATIONAL UPDATE GUINEA-BISSAU

Further DrillingPreparations

12

1. 70.71% interest in Block 2 (Sinapa) 2. 70.71% interest in Blocks 4A and

5A (Esperança)

Guinea-Bissau | Svenska Annual Report 2019 | 19

/ LICENCES GUINEA-BISSAU

Svenska holds a 70.71 per cent equity interest in our operated Sinapa Block 2 and Esperança Blocks 4A and 5A. Our licence partners Petroguin holds 10 per cent and FAR Ltd holds the remaining 19.29 per cent.

/ OPERATIONAL UPDATE IVORY COAST

20 | Svenska Annual Report 2019 | Ivory Coast

Arlene Davitt, VP Production and Development

We are well placed for the addition of future Baobab phases and Kossipo with a maximum gross liquids capacity of 70,000 bbl/d.”

/ OPERATIONAL UPDATE IVORY COAST

Successful Appraisal Well in the CI-40 Licence2019 saw the successful completion of the Phase 4 drilling campaign, adding 10,000 bbl/day to production. The Kossipo 2X appraisal well was successfully drilled confirming a single contact across the field.

PHASE 4 DRILLING CAMPAIGN AND BEYOND The Phase 4 drilling campaign was successfully completed with no HSE incidents in 416 days compared to the planned 413 days. Four production wells and two water-injection wells were drilled in the north and in the south of the Baobab field. Production from the new wells met expectations and increased the daily oil production from approximately 20,000 bbl/day to 30,000 bbl/day. It is expected that Phase 4 will recover an additional 50 mmbbls bringing the field recovery factor to more than 20 per cent, demonstrating significant opportunity to further develop the Baobab field. Attention has now turned to planning for Phase 5.  This phase will most likely consist of 5-6 production wells and 1-2 water injectors, increasing the field recovery factor to 25 per cent. The Phase 4 average well cost was MUSD 66, which was 46 per cent lower than Phase 3 (MUSD 122). The rig rate in Phase 3 was much higher than Phase 4 which has to be taken into consideration. The operator, Canadian National Resources, CNR, has generated a charter for Phase 5 indicating first oil in Q2 2022. A

Baobab-type reservoir should be able to achieve an Ultimate Recovery Factor in excess of 30 per cent demonstrating further development potential post Phase 5.  It was another great year for Baobab with an average uptime of 99.7 per cent for 2019.

KOSSIPO-2X APPRAISAL WELL Kossipo was discovered in 2002 approximately 7.5 km east of Baobab within the CI-40 licence boundaries and as such enjoys the same terms and conditions as Baobab. Following the 2014 3D seismic survey that was acquired over Baobab and the northern part of the Kossipo prospect, a more confident interpretation confirmed the seismic flat spot and justified an appraisal well to be drilled in 2019, Kossipo-2A. This well encountered a 213 ft oil column in Albian reservoir with an Espoir-type light oil (32° API). This well proves the flatspot represents the Oil Water Contact (OWC) and as it is similar to that encountered in Kossipo-1X, suggests a single contact across the field. A Drill Test Stem (DST) was run confirming the commerciality of the accumulation.  CNR is planning to invite contractors

to a Design Competition which will allow selection of a preferred contractor prior to Engineering Design (FEED/Detailed Design) for the first part of the Kossipo development. Design reviews will be planned during the Design Competition leading to opportunities to refine the initial cases before detailed flow assurance work is carried out and to review operational requirements. Award will be made early in 2020 once a solution to the currency issues in the Ivory Coast has been found, and the current estimate from Final Investment Decision (FID) to first oil is 24 months.  The first phase will target the north and central area. With the planned Ocean Bottom Node (OBN) seismic inclusion over the whole Kossipo field, the south area may follow. The current development plan is based on three production wells and two injectors in the northern compartment tied back to a 4-6 slot production manifold and a four-slot water-injection manifold respectively. The concept will utilise subsea multi-phase pumps tied back to the Baobab FPSO. Upgrades to the FPSO turret and power upgrades to subsea and pump control modules will be required. First oil is anticipated in Q2 2022.

Ivory Coast | Svenska Annual Report 2019 | 21

 The Southern area may add another 30–40 mmbbls, should the OBN seismic prove successful.

BAOBAB LIFE EXTENSION PROJECT The SS9 steel renewal programme to obtain ABS class for the period from 2019 to 2024 was extended until March 2020 due to increased workscope in a number of the cargo tanks. With SS9 completed the plan for future steel renewal programmes will be based on estimated steel requirements for each following five-year period to the end of field life. The estimated costs for this project to end of field life remain unchanged, but it is becoming clear that focus will mainly be on the turret swivel and bearing as well as mooring chains and the production risers.  The swivel and bearing undergo regular inspection and one of the top sections of the mooring chains was replaced this year. The 6” gas export riser is being given particular attention to ensure its integrity. Two new risers have been ordered for delivery before the end of 2020 as a proactive measure.

SVENSKA JOINED THE CI-40 LICENCE IN 1998 Oil was discovered on the continental shelf of the Ivory Coast in the 1970s and since then petroleum has become an important export product.  In 1997, Svenska farmed-in to the Espoir Field, Block CI-26, located north of the Baobab field, entering a partnership with Addax Petroleum, Ranger Oil, Tullow and the national oil company Petroci. When oil prices plummeted in 1998, Svenska left the licence for financial reasons, but stayed with the partnership in the newly formed CI-40 exploration licence, covering the Baobab prospect. Tullow and Addax decided to leave the partnership. Ranger was acquired by, and incorporated into, CNR.

EXPLORATION AND DEVELOPMENT Interpretation of the seismic data was completed by the operator, CNR, Svenska and Petroci. The first well was drilled in 2001 and the theory of oil migration paths into the reservoir was confirmed. An appraisal well was

drilled in 2002 and only three years later, production from the Baobab field commenced. At the time, this was the fastest oil development project ever performed in West Africa.  The reservoir is located in water depths of 1500 metres. Production from the field commenced in August 2005 from ten horizontal wells aided by three water injectors. The produced fluids were co-mingled and transported via flow lines to an FPSO moored in 900 metres water depth.

A NEW JOB FOR NINA The vessel used for conversion to an FPSO was a very large crude carrier (VLCC) of 350,000 deadweight tonnage (DWT) called “Nina”, built at Kockums shipyard in Sweden in 1978. After the Exxon Valdez accident in Alaska in 1989, single-hull tankers like “Nina” were no longer allowed to enter US ports or terminals. In 2004, she was converted into an FPSO by Modec International Inc. and contracted by the Baobab partnership. She left the Jurong shipyard in Singapore on 26 December 2004 – and the FPSO arrived in the field offshore the Ivory Coast in January 2005. Oil production started in August 2005.  The FPSO is equipped to process hydrocarbons, separating crude oil, water and gas. The gas is partly used for power generation on board the vessel, partly piped via the Espoir export gas system to shore at the Adjue gas terminal and transported on to the Azito power generation plant near Abidjan, where it is used as feed stock for generating electricity. Crude oil is stored in cargo tanks on board. The storage capacity is a generous 2.4 mmbbls.  The FPSO is owned and operated by Modec International Inc., a Japanese international supplier and operator of FPSOs.

HEAVY OIL WITH A COOL ADVANTAGE Crude oil from the Baobab reservoir is comparatively heavy, but still attractive on the world market. It stays in liquid form down to -40°C, which is a big handling advantage for refineries in the northern hemisphere during winter conditions.

 Baobab crude oil is marketed and sold worldwide by Shell, the largest trading company of West African crude oil, trading about 800,000 bbl/day. Traded oil is transferred from the FPSO to shuttle tankers for further shipment to refineries. Shuttle tankers are normally designed to fit either the Panama Canal or the Suez Canal. A Suez tanker has a capacity of one million barrels.

NEW COMPLETION SOLUTION “Unconsolidated sand has presented a problem on Baobab, the proven ‘Expandable Sand Screen’ (ESS) Technology was used in the initial Phase 1 well design and five of the ten first wells were lost due to screen collapse,” says Arlene.  The solution was another completion technology, the tried and tested “Open Hole Gravel Packing” (OHGP). It was introduced in Baobab in 2009, when four new wells were drilled as replacements for the failed Phase 1 wells. Two of these four wells are still in service after we lost a second one of them a couple of years ago. Of the original 10 ESS wells, only one remains.  “Losing these initial wells has meant that Baobab has operated below capacity to date. This means we are well placed for the addition of future Baobab phases and Kossipo with a maximum gross liquids capacity of 70,000 bbl/day.”

FUTURE DEVELOPMENT ACTIVITIES The Baobab field still has huge untapped potential and further development is planned. With the Phase 4 wells online, the target recovery will be around 20 per cent of the oil in place with Phase 5 bringing that recovery up to 25 per cent. The partnership is working towards a target in excess of 30 per cent by the time the licence reaches relinquishment.  The successful appraisal of Kossipo paves the way for a subsea development hopefully tied back to the Baobab FPSO increasing the recovery from the CI-40 licence by up to another 70-80 mmbbl.  The West African Central Bank and the Ivorian Government are intending to enforce the West African

22 | Svenska Annual Report 2019 | Ivory Coast

/ OPERATIONAL UPDATE IVORY COAST

Economic and Monetary Union (“WEAMU”) regulations in relation to revenue repatriation. CNR have been in discussion with the Ivorian Government for most of 2019 on this issue without being able to reach a satisfactory solution. Such enforcement would be in direct contradiction to the terms of the PSC governing the CI-40 licence and until a satisfactory solution has been reached future investments in development in the region may be at risk.

1

1. 27.39% interest in Block CI-40/ LICENCES IVORY COAST

Licence/BlockCI-40

OperatorCNR International

Svenska’s interest27.39%

Obtained by Svenska1998

Production start2005

Remaining reserves95.1 mmboe

Total 2C contingent resources179.5 mmboe

Production 201910.8 mmboe

* Svenska figures

/ STATISTICS BAOBAB FIELDS *

Svenska, with a 27.39 per cent interest, is joined by operator Canadian Natural Resources International (CNR), with 57.61 per cent and the national oil company Petroci with 15 per cent interest.

Ivory Coast | Svenska Annual Report 2019 | 23

Arlene DavittVP Production and Development

24 | Svenska Annual Report 2019 | Supporting the Organisation

Supporting the OrganisationIt is vital that Svenska has efficient support for its daily operations as well as active business development.

BUSINESS SUPPORTThe day-to-day finance operation is at the heart of the support organisation, providing timely operative and statutory reporting to the relevant stakeholders. Equally important, prudent financial management and planning are key objectives for the finance function, given the capital-intensive nature of the business. In addition to the traditional finance function of Svenska’s shared centre for accounting, treasury and financial reporting located in Stockholm, the Business Support function also includes specialist sub-functions for Legal, Insurance, Business Processes Optimisation (BPO) and IT. “There have been several new faces joining the finance team during 2019. It is a challenge but definitely more of an opportunity when existing routines get challenged by fresh eyes,” says Lars Schennings, CFO. “There is now an incredibly solid expertise in the whole Business Support organisation, that I am very proud of. Also, by continually upgrading our systems, e.g. enabling handling of supplier invoices by using an app on their hand-held device, we simplify and streamline administrative processes.”

TIMES ARE A’ CHANGING“The oil and gas industry is being challenged and that is also something that affects Svenska,” Lars continues. “I was recently in Oslo at a major oil and gas conference and it is noticeable how fast things are moving. Traditionally very few investors talked about anything else than financial performance. But now there is a growing focus on integrating ESG factors (Environmental, Social, and Governance) in the investment decision process.” “For a company like Svenska this is something we are well aware of, we are operating in an industry that is challenged by new alternative energy solutions,” says Lars. “We try to monitor developments closely to see how this influences

our business. There will still be requirements for fossil energy to meet the energy demands for many years to come, and we as a company must deliver the product to the highest of ESG standards.”

EXAMINATION OF NEW VENTURESIn 2019 we have worked hard from a financial and administrative perspective on our project in Guinea-Bissau. It has been disappointing that we have not been able to move on at the pace we wanted, but much of the work will assist when we finally are able to start the next phase. We have also put efforts into looking into new country entries, for instance, in Cameroon and Gabon. If we decide to sign a licence it is critical that we know how it should be owned, how accounting and the Board will work, what currency restrictions there are, etc. “Entering a new country is a challenge from a business support perspective but it is our role to give guidance in upcoming financial and administrative matters,” Lars explains.

A COMPREHENSIVE SOLUTION TO OUR IT ENVIRONMENT“At the end of 2019 we finalised the last bits of our move to one integrated IT environment. Since we sold the Norwegian business our IT infrastructure has been divided between Oslo and Stockholm. Finally, everything is gathered in a protected server environment in Stockholm, and everyone – including administration and our geologists – is now working on the same server structure,” Lars concludes.

BUSINESS DEVELOPMENTThe business development function has two objectives: firstly, to ensure that the Company’s growth objectives are met through acquisition and exploration of new venture activities and secondly, to manage the existing portfolio

Supporting the Organisation | Svenska Annual Report 2019 | 25

/ SUPPORTING THE ORGANISATION

BUSINESS SUPPORT

TREASURY LEGAL INSURANCE ITFINANCE

ACCOUNTING & CLOSING

CONTROLLING

GROUP CONSOLI-DATION & TAX

Lars SchenningsCFO & VP Business Support

Duncan RushworthVP Business Development

through asset divestments and farm-downs of exploration licences. In order to support these efforts, the department maintains an extensive network of investment banks, brokers and other exploration and production companies.  “In 2019 much of our work has been implementing Svenska’s African new ventures strategy,” says Duncan Rushworth, VP Business Development. “An Area of Mutual Interest (AMI) has been defined with potential joint venture partners and we are moving towards making applications for new exploration blocks in the Republic of Cameroon.” “The Company also continues to review selected opportunities in Cameroon, Gabon, the Republic of the Congo and in the MSGBC Basin. There are a number of exploration licensing rounds that are ongoing where we aim to be an active participant,” Duncan stated.

Supporting the Organisation | Svenska Annual Report 2019 | 25

BPO

26 | Svenska Annual Report 2019 | CSR

In addition to the social commitments that are part of our licence obligations, Svenska wants to support the local communities where we are present.  “I’m proud of being a part of Svenska and its engagement in several much-needed projects in our host countries. We are looking for aid projects that

allow us to remain politically and religiously independent and that have a real impact on people’s lives,” says Térèse Steén, Business Processes Optimisation Manager. A NEW AGREEMENT TO SUPPORT SOS CHILDREN’S VILLAGES In an effort to give back to the communities near our operations, Svenska has successfully cooperated with SOS Children’s Villages for more than 10 years. In 2019 we signed a new agreement to support their important work. The organisation focuses on family-based, long-term care for children who are unable to grow up with their biological families, in order to provide a much-needed sense of safety and stability.  The goals of the work of SOS Children’s Villages are to end poverty, ensure quality education for all and to strive for peace, justice and strong institutions. These goals are a part of the 17 Sustainable Development Goals of the 2030 Agenda for Sustainable Development – adopted by world leaders at the United Nations in 2015. The villages Svenska supports are located in Guinea-Bissau, the Ivory Coast and Nigeria. EMPOWERMENT IN TOSTAN During the year Svenska has continued to provide support to Tostan, an Africa-based charity focused on human rights, sustainable development and positive social transformation in West Africa. Svenska is supporting empowerment programmes in 21 villages. They distance themselves from female genital mutilation, forced marriage and child marriage. Tostan focuses on the people in the villages and lets them decide how they

Svenska strives to be a part of the development of our host countries, not only through the discovery and development of oil assets, but also by delivering on social commitments to our host communities.

want to work and which areas they want to put efforts into.  “We admire the work of Tostan, where they focus mainly on development programmes and supporting local communities, something that Svenska clearly supports. Therefore we have committed to continue to support their projects in a new 3-year agreement. We have also chosen to support Tostan and their Community Empowerment Program with this year’s traditional Christmas donation,” concludes Térèse Steén. INVESTMENT FOR THE FUTURE Apart from such direct support for organisations such as SOS Children’s Villages and Tostan, Svenska continues to work closely with our licence co-venturers to support various social projects relating to education, healthcare and sustainable growth. This year we have initiated a project to supply a school for disabled children with school desks, the same school that we participated in rebuilding in 2018. Over the past years, we have had the opportunity to re-open schools that have been refurbished as well as a new recreation/cafeteria hall for the paediatric ward and the refurbished Emergency Care Unit and operating facilities at Simão Mendes hospital in Bissau. We are also supporting Idyllienhoppet, a Swedish charity organisation, helping to improve the stay for children and families in Swedish hospitals. As an international company we try to reduce our travel, but it is impossible to completely avoid air travel. That is why we have chosen to climate offset all of our air travel. In 2019, this amounted to 173 tonnes of CO2, which has been compensated for through a tree-planting project in Panama and projects to secure food to farmers in west Kenya.

Local Support for Sustainable Growth

Térèse Steén, Business Processes Optimisation Manager

/ CORPORATE SOCIAL RESPONSIBILITY

CSR | Svenska Annual Report 2019 | 27

Protecting People, Envıronment and AssetsPreventing harm to life, assets and the environment is a core value for Svenska’s business. Consequently, HSEQ matters are always taken into consideration and form an integral part of Svenska’s way of working.

28 | Svenska Annual Report 2019 | HSEQ

/ HEALTH, SAFETY, ENVIRONMENT AND QUALITY

HSEQ | Svenska Annual Report 2019 | 29

30 | Svenska Annual Report 2019 | HSEQ

In order for Svenska to achieve its aims we rely on the competence of our staff as well as our strong corporate values and the enthusiasm and professionalism of our team.  While driving efficiency

and seeking a greater return on investment, we also strive to maintain a healthy corporate culture by regularly reviewing our business practices and the effectiveness of our policies. We continually improve our ways of operating in a manner that eliminates any harmful practices in business as well as to people and the environment. UPHOLDING A SOUND BUSINESS CULTURE Ensuring a sound organisational culture, processes and management systems are the foundations of our long-term business strategy. Svenska actively engages in dialogue with industry networks and with the guiding principle of applying internationally recognised HSEQ practices within our operations. The overall aim is to create value through strong financial performance based on profitability and competitiveness, while safeguarding people’s health and safety, minimising risks to the environment, and contributing to the continual growth of local communities. ANTI-BRIBERY, CORRUPTION AND CODE OF CONDUCT Svenska is committed to complying with all applicable anti-bribery laws, including but not limited to the relevant Swedish and UK laws, as well as local laws in the countries where we have licence interests or otherwise do business. In addition to Svenska’s legal obligations, Svenska is also subject to contractual requirements set out in contracts with our partners and other counterparties, obliging us to comply with such laws. Svenska requires the same from anyone with whom it does business. The latter is implemented by requiring all Svenska’s subcontractors to sign a template service agreement that includes an undertaking to comply with Svenska’s Anti-Bribery Policy and Procedures and our Code of Conduct.

IMPROVING OUR EFFORTS IN 2020 The area of HSEQ and corporate social responsibility is an everchanging landscape of new regulation and best practice to achieve continual improvement. Hence in 2019 we started the process of updating our Anti-Bribery Policy and Procedures and our Code of Conduct. In November 2019 the Board of Svenska set the directions, and approved a new Anti-Money-Laundering Policy, a Know Your Supplier Policy and a Sanctions Policy which will be in place from the beginning of 2020.  Money laundering is a crime and so our Anti-Money-Laundering Policy lays out the checks that Svenska will carry out on its counter-parties before doing business with them to ensure that we are not dealing with “dirty money”.  Before entering into a business relationship, Svenska’s Know Your Supplier Policy means that we will be bound to carry out due diligence and risk assessments on the counter-party. There are three levels of due diligence depending on the likely risk to the company. Risk factors include geographical location and the value and type of goods or services.  The third policy is our Sanctions Policy, which is a tool to make sure we are only working with entities which are not subject to any sanctions either in the EU or the USA.  Svenska recognises that it works in geographical areas that can be at times, challenging from a governance point of view. These three policies will work side by side to create a safer and less risky business environment. Sitting alongside will be our revised Code of Conduct and Anti-Bribery Policy and Procedures. ASSESSING, MONITORING AND CONTROLLING RISK Svenska assesses, monitors and controls its risks and behaviours by creating mandates and commitments throughout the organisation. These mandates include maintaining the highest standards of safety and working conditions, while committing to minimise the environmental impact of our operations and a zero tolerance for bribery and corruption.  During 2019 there has been

significant effort put into improving and streamlining the management system and processes within Svenska.

HEALTH, SAFETY, ENVIRONMENT AND QUALITY (HSEQ) Svenska has a strong track record on HSEQ matters and our responsibility for people and the environments where we operate is a top priority. Implementation of our HSEQ processes is the responsibility of each line manager and employee. In our work we are obliged to comply with all the relevant statutory and regulatory requirements, and aim to exceed them. As a responsible co-venturer in licences, Svenska uses its competence to assist the operator to improve project execution and secure operations. Svenska actively engages in dialogue with industry networks, with the guiding principle of applying recognised HSEQ practices within our operations. During 2019 there has been significant progress on the design and preparation for the Svenska-operated Atum 1X well in the Sinapa field, Guinea-Bissau. This has included giving the utmost attention to the development of our Environmental & Social Impact Assessment (ESIA), Oil Spill Contingency Planning (OSCP) and the safety aspects of this exploration drilling.  The development of health and safety oversight and practices is core to Svenska’s strategy of increasing our operating capability. HSEQ considerations remain a top priority in our own organisation and in the licences where we are a co-venturer.

RESPECT FOR HUMAN RIGHTS Svenska appreciates that its assets are situated in countries which at times have complex internal political situations. Svenska ensures that we take a firm stance against abuses of human rights. All our staff receive regular training in the content of the Code of Conduct and Anti-Bribery Policy and Procedure.  Before an investment decision is taken to invest in assets in a new country, Svenska undertakes an above-ground risk assessment by following the Svenska New Country Entry Checklist. The full Sustainability Report is available on www.svenska.com

/ HEALTH, SAFETY, ENVIRONMENT AND QUALITY

HSEQ | Svenska Annual Report 2019 | 31

As set out in our HSEQ Policy, our priorities and objectives are to:• Provide a safe and healthy working environment for those involved in Svenska’s activities;• Ensure we select competent contractors, sub-contractors, consultants and vendors that will

positively contribute towards our HSE objectives and goals;• Operate in compliance with relevant regulations and international requirements, striving to

exceed these wherever practicable;• Demonstrate leadership by encouraging open and honest communication on all matters HSE

related and proactively raising the HSE awareness of our employees and service providers;• Continually improve our HSE performance and management system through reporting,

monitoring, lessons-learned programme and auditing;• Identify and manage risks in all our activities to eliminate or minimise harm to people,

environment and assets;• Set realistic yet challenging HSE goaIs for our operated projects and activities;• Minimise waste, emissions and discharges from our operations and ensure the efficient use

of resources and energy;• Ensure our operating partners place the appropriate emphasis on activities that could have

a negative impact on the health and safety of personnel and the environment.

All employees have the right and duty to stop activities that they believe are in breach of the Svenska HSE Policy.

Svenska’s Priorities and Objectives

32 | Svenska Annual Review 2018 | Liquis et ped mod qui vollabo. Hendi bea natiur

1969The 50/50 joint venture OPAB is founded in April by the Swedish government and a consortium of Swedish enterprises (AGA, Boliden, Gränges and Sydkraft). Their objective is to explore for oil and gas in Sweden.

1973Petroswede AB is formed in July through another 50/50 joint venture between the Swedish state and the companies LKAB, the Salén Group, the Axel Johnson Group and KemaNord. E&P outside Sweden is the new company’s mission.

1974OPAB discovers oil on the Swedish island of Gotland.

1979In February, state-owned refining and marketing company Svenska Petroleum buys part of Petroswede and changes its name to Svenska Petroleum Exploration. OPAB becomes a subsidiary of Svenska.

1983Svenska acquires interest in BP’s Ula discovery on the Norwegian Continental Shelf from Conoco.

1986Svenska and Oljekonsumenternas Förbund (OK Union) merge to create OK Petroleum (OKP). KF (the Cooperative Union) is the largest

shareholder, while the Swedish state and Finnish Neste Petroleum hold the remaining shares. All upstream activities are concentrated in Svenska.

1991The Swedish Parliament approves selling the government’s stake in Svenska to OKP making the latter the sole owner. Svenska acquires an interest in the Nelson field in the UK.

1993Svenska becomes operator of the Genciai oil field in Lithuania. Production activity begins at the Cobo field in Angola.

1994Sheikh Mohammed H. Al-Amoudi acquires OKP through his investment company Moroncha Holdings. First oil from the Nelson field.

1995First oil is produced from the Pambi field in Angola. Svenska acquires an interest in the Janice field in the UK.

1996OKP becomes Preem Petroleum and divests its shares in Svenska to a newly established holding company which inherited the name Petroswede (through Moroncha Holdings). OPAB becomes a wholly-owned subsidiary of Svenska after acquiring Sydkraft’s shares.

1997First oil is produced from the Oombo field in Angola.

1998Svenska acquires an interest in the promising Block CI-40 offshore the Ivory Coast. First oil in the Genciai oil field.

1999First oil from the Janice field.

2001Oil is discovered in the Baobab field, the largest oil discovery in the West African Transform Margin to date, and a turning point for the Company.

2005First oil is produced from the Ivory Coast oil field Baobab.

2006Svenska divests its 50 per cent interest in the joint venture UAB Genciu Nafta.

2007Svenska acquires Occidental Petroleum Corp’s West African licence portfolio with an array of exploration assets in Angola, Guinea-Bissau and Nigeria.

2008Svenska divests its interests in the Ula field off Norway and the Janice and Nelson fields offshore the UK Continental Shelf.

Our HistoryThe Svenska Group dates back to 1969 and the founding of Oljeprospektering AB (OPAB).

32 | Svenska Annual Report 2019 | Our History

OPAB was an initiative of the Swedish government and Swedish private enterprises to harness some of the vast potential offered by a growing energy market. The state’s 50 per cent ownership stake confirmed that OPAB’s mission to find and produce oil and gas in Sweden was in the national interest. In 1973, as the first energy crisis crippled economic growth, the quest for hydrocarbons beyond

Sweden became the mission of Petroswede, another private-public partnership. In 1979, the state-owned company Svenska Petroleum acquired parts of Petroswede and launched a new company named Svenska Petroleum Exploration. Svenska would later enter into an agreement with OPAB to operate all of its fields and take over staff and premises.

/ HISTORY

2009Svenska celebrates 40 years of operations. The Company acquires interests in the Republic of the Congo’s Marine Block IV and the Ivory Coast ’s Block CI-24. The Fulla and Frigg Delta discoveries are made in Norway.

2010Operator Svenska completes a 3D seismic survey of the Sinapa and Esperança licences offshore Guinea-Bissau.

2011The Azul-1 well in Angola finds oil in the pre-salt petroleum system.

2012Oil is struck in five out of six wells in Angola, the Republic of the Congo, Nigeria and Norway.

2013The interest in the Republic of the Congo’s Marine Block IV is dropped after drilling a dry well. The Askja field in Norway is discovered.

2014Withdrawal from Angolan licences. Incremental discoveries in Krafla and Garantiana. Svenska is prequalified as operator on the Norwegian shelf.

2015The development of Baobab Phase 3 is successfully accomplished. The Norwegian operations are sold by the end of the year.

2016Completion of the first well of the Phase 4 redevelopment in Baobab. Average production reached 27,000 bbl/day in the Baobab Field.

2017A revised set of new agreements is completed between the Joint Venture partnership and the owner and operator of the Baobab FPSO which provides motivation for long-term investments and contributes to successful co-operation.

2018The Baobab Phase 4 drilling campaign resumed, with three more wells added, making a total of 11, the average production reaches 30,000 bbl/day. In November Baobab field produced the one hundred-millionth barrel of oil.

2019Svenska celebrates 50 years of operations. Baobab has continued delivering a profitable average production of approximately 26,500 bbl/day. However, hopes of exploration drilling in Guinea-Bissau have been halted by political circumstances and in Nigeria the government has signed an amendment bill that increases Svenska’s royalty costs in Nigeria, OML 145.

Our History | Svenska Annual Report 2019 | 33

34 | Svenska Annual Review 2018 | Liquis et ped mod qui vollabo. Hendi bea natiur

Liquis et ped mod qui vollabo. Hendi bea natiur | Svenska Annual Review 2018 | 35

Financial Report2019

36 | Svenska Annual Review 2018 | Liquis et ped mod qui vollabo. Hendi bea natiur

Business Review | Svenska Annual Report 2019 | 37

Board of Directors’ ReportSvenska Petroleum Exploration AB (Svenska) in 2019.

INTRODUCTIONThrough participation in joint operation projects, Svenska is actively engaged in all aspects of the exploration and production of oil and gas as well as associated activities. Today, business operations are conducted in the Ivory Coast, Nigeria, Guinea-Bissau, Latvia, the UK, Ireland and Sweden. Produced oil is sold to refineries worldwide, mostly in Europe and North America. The Group is presently not involved in direct gas sales.

GROUP ORGANISATIONSvenska is an international upstream oil company. Business is conducted through subsidiaries, directly or indirectly. The business is supported by offices in Stockholm, London and Bissau, where staff are based. Knowledge and competence are spread across the different locations, and the project team for a particular asset often consists of staff from more than one office in order to best utilise the full set of skills and competences. Insurance is managed through the wholly owned subsidiary Petroswede Insurance Company DAC (Ireland).  Svenska has six wholly owned subsidiaries in Sweden, the UK and Ireland. Some of these subsidiaries have their own subsidiaries, foreign branch offices or representative offices.

OWNERSHIP AND GROUP STRUCTURESvenska is wholly owned by Petroswede AB, which is ultimately held by Moroncha Holdings Ltd, Cyprus, a company owned by Sheikh Mohammed H. Al-Amoudi.

EVENTS DURING THE FINANCIAL YEAR During the year, Svenska’s share of oil production from the Baobab Field in the Ivory Coast increased significantly compared to 2018. Svenska’s entitlement share of average production in the field was 8,037 (6,642) bbls/day. The sharp production increase versus last year is explained by the addition of new wells from the infill drilling campaign, Phase 4, in the Baobab field that was completed in June. The infill drilling campaign in licence CI-40 was started in May 2018 and consisted of the addition of three production wells, three water injection wells in the Baobab field and an exploration well in the Kossipo prospect. Transocean’s rig Discoverer India was on contract for the CI-40 J/V for a period of one year, which included exercising two optional wells; one additional producing well and the exploration well in the Kossipo prospect. Despite some unexpected

technical issues during the drilling of the formation the overall campaign was completed on time and within budget. Operationally it has been yet another very good year with excellent availability and uptime on the Floating Production Storage and Off-load vessel (FPSO). In fact the uptime was 99.7%, which again is a recognition of the good operational organisation with the operator CNR and owner of the vessel Modec. During the year, one of the mooring chains broke on the FPSO but was successfully replaced without any impact on production. The FPSO capex turn-around project continues with planned maintenance and replacement of all vital parts of the vessel to enable safe and efficient production during the term of the licence. In Nigeria, the OML 145 licence remains a significant untapped potential with more than 300 million barrels recoverable, meaning a Baobab-sized discovery with even better reservoir properties, also with excellent PSC terms. During the year there has been very little tangible progress from a legislative perspective to promote field developments like Uge. On the contrary, the Government announced late in the year a plan to impose additional royalty on producing assets and discoveries in pre-development phase, which includes Uge. The royalty scheme has a detrimental impact on project returns, and the operator, Esso Exploration & Production Nigeria (Deepwater West) Ltd, has announced that it intends to suspend further development activities until the royalty issue has been resolved. In the meantime the leased development concept for Uge has been further analysed by Svenska and other J/V partners. Svenska clearly sees merits in the alternative development solution based on its ability to deliver the field considerably quicker and at lower cost compared to the operator’s development plan. As long as the uncertainties prevail Svenska is spending minimal costs in the licence. In Guinea-Bissau, where Svenska is operating Blocks 2, 4A and 5A, a Farm-Out Agreement was signed in February between the asset-holding company SPE Guinea Bissau AB and CNOOC West Africa Petroleum E&P S A (CNOOC) under which it was agreed that CNOOC will acquire 55% of Svenska’s equity interest in both licences, subject to certain conditions being fulfilled, one of which is local consent. Due to the political situation in country, such approval has not been granted, which has a knock-on effect on the progress of work in the licences. The planned exploration well has been delayed and the next available rig slot is in Q3 2020. Svenska’s main assumption is that the election period at the end of the year will pave the way to obtain the necessary consent and start

planning for the well.  Svenska has been actively working on selected business development activities during the year. The technical team has assisted in evaluating licensing and farm-in opportunities in countries in West Africa. In parallel, the Business Support team has been screening the above-ground risks to ensure that all risks related to entering a new licence in a new jurisdiction are properly managed.  On January 27 it was confirmed that Sheikh Mohammed H. Al-Amoudi had been released from a 14-months long detention. He has officially confirmed that he is in full control of his assets. The 2019 average Brent crude oil price decreased to USD 64.03 per barrel, down from USD 71.04 in 2018. Prices began the year at USD 57.39 and ended the year at USD 66.00. As of 5 February 2020, the price is USD 55.40 per barrel. In 2019, the US dollar became stronger against several currencies, including the Swedish Krona, and averaged USD/SEK 9.4249 in 2019. The US Dollar became 5 per cent stronger against the Swedish Krona progressively throughout 2019.

OPERATING INCOME AND COSTSConsolidated total net sales during the year were USD 191,499 (172,426) thousand. The underlying oil sales were significantly higher than last year thanks to a higher production volume, despite lower oil price. Svenska continued to hedge 100% of its projected oil production both in 2019 and the first half of 2020, with a strategy to optimise the premium cost by covering the risk in a significant price downside scenario. Oil hedge revenue was USD 0 (0) thousand and the premium expense amounted to USD 0 (-4,854) thousand. The revaluation effect of the 2019

hedge programme had a negative impact of USD -14,981 (14,232) thousand, where the variance is explained by a significant negative market-to-market valuation gain as a consequence of the oil prices normalising during the year following the sharp drop in the oil price in December 2018. Production was 2,933 thousand barrels of crude oil in 2019, compared to 2,425 thousand barrels the previous year. The average production was 8,037 (6,642) bbl/day. As already commented, production is significantly higher compared to last year thanks to new wells coming on stream. It should also be noted that the Baobab Field is producing both oil and associated gas. The average production was 8,130 (7,459) boe/day. Operation and exploration costs totalled USD 42,324 (40,181) thousand in 2019. The total figure is broken down into the following cost items: operating expenses USD 30,818 (28,522) thousand, royalty costs USD 3,771 (3,424) thousand, exploration and project expenses USD 194 (1,383) thousand and oil tax operational (the host government’s tax share in production-sharing contracts) of USD 7,451 (6,852) thousand. Consolidated depreciation for 2019 amounted to USD 44,136 (34,517) thousand. Employee payroll costs for 2019 were USD 10,761 (9,945) thousand. The average number of employees was 25 (27) in 2019, and the decrease is explained by fixed positions being replaced by interim positions. Net financial items for 2019 were USD -18,377 (-7,354) thousand. The net financial items are broken down into the following items: revaluation of financial receivables and payables was USD 658 (2,520) thousand, interest expense was USD -7,947 (-10,445) thousand, interest expense on leases USD -2,871 (0), group contribution to Petroswede Europe AB USD -7,654 (0) and interest income USD 788 (571) thousand. Other financial income was USD -1,351 (0) thousand. Tax costs for the Group

38 | Svenska Annual Report 2019 | Business Review

DRAFT

were USD -15,647 (-25,367) thousand, corresponding to an effective tax rate of 27.2 (31.5) per cent.

EARNINGS AND CASH FLOWThe Group’s operating profit for the 2019 financial year was USD 75,918 (87,846) thousand. Cash flow from operations before changes in working capital was USD 112,507 (103,562) thousand.

INVESTMENTS AND FINANCIAL POSITIONIntangible and tangible fixed assets at year-end were USD 696,972 (670,978) thousand. Investments in intangible assets were USD 14,293 (1,607) thousand. Investments in tangible assets were USD 54,558 (76,296) thousand. Cash and cash equivalents were USD 34,489 (38,545) thousand as of 31 December 2019. The strong free cashflow during the year has enabled both extra amortisation on the Reserves-Based Lending Facility and upstreaming of excess cash to the owner. At year-end, Svenska had USD 52,000 (72,000) thousand drawn on the Reserves-Based Lending Facility.

ENVIRONMENT, SAFETY AND GOVERNANCE Svenska takes great care to prevent accidents that could impact negatively on people’s health and the environment. Continuous improvements in our working culture and our processes are the foundation of our long-term business strategy. The application of common recognised Health, Safety and Environmental practices is a guiding principle in our operations, and Svenska actively participates in knowledge-sharing industry networks.

Svenska’s priorities and objectives are to: • Prevent loss of human life and avoid injury (highest priority). • Strive for environmentally improved techniques to be used in all licences in which the Company participates, taking into account technical and economic conditions in different areas. • Possess a well-developed environmental awareness when making technical and economic decisions. • Try to influence partners and vendors to exceed the minimum legal requirement when environmentally called for. The objective is to be ahead of even the most stringent anticipated requirements.• Be perceived by other companies, regulatory authorities, environmental organisations and the general public as environmentally aware and responsible.

CORPORATE SOCIAL RESPONSIBILITY Svenska also works actively within the CSR area and engages in several projects. Svenska continued its cooperation with SOS Children’s Villages in 2019. Svenska’s support covers the SOS Children’s Village in Abobo-Gare in the Ivory Coast, the SOS Hermann Gmeiner Primary & Secondary School in Guinea-Bissau and the SOS Children’s Village in Owu-Ijebu, Nigeria.  During the year Svenska has continued to provide support to Tostan, an Africa-based charity focused on sustainable development and positive social transformation in West Africa.  Svenska’s Sustainability Report 2019 sets out our approach towards sustainability and provides an overview of our intentions to contribute to a sustainable environment.The full report is available on Svenska’s webpage (www.svenska.com).

Business Review | Svenska Annual Report 2019 | 39

DRAFT

PERSONNELA vital factor in implementing Svenska’s growth strategy and in carrying out our operating activities is Svenska’s skilled and dedicated personnel. Access to skilled personnel is ensured through consciously working towards the development of a project-oriented organisation. The Group’s ambition is to unite different cultures and establish a common approach within the Group.

GOVERNANCE Svenska is committed to adhere to the highest of ethical standards in the way we run our business. Svenska continuously reviews and updates its framework of policy documents, which are also imposed on suppliers to Svenska and other partners.

RISKS AND UNCERTAINTIES Risks in the oil & gas businessSvenska’s operations are completely focused on the exploration and production of oil and gas. This is a business with high operational and financial risks. Regardless of experience and knowledge, discovery of commercial volumes of oil and gas cannot be guaranteed.

Price riskSvenska is exposed to commodity market fluctuations as the product is sold at a price quoted against the Brent Crude benchmark. Depending on the timing of lifting the product, the Brent market price may change significantly. Svenska mitigates the downside risk by hedging the projected annual production, effectively establishing a Brent floor price.

Political risks Svenska operates in a global market. Changes in laws and regulations concerning for example foreign ownership, state control, taxes, royalties, environmental rules and/or customs duties may have a negative effect on the financial result. Risk factors such as civil unrest, war, terror, border disputes and uprisings can also affect Svenska’s operations. By the end of 2019, there was no political risk insurance taken for any country where the Group is active. The need for such insurance is continuously evaluated. When needed, and if available, such insurance will be taken.

Environmental risks Exploration and production of oil and gas can cause environmental damage. National laws and production agreements with partners can make Svenska financially responsible for such damages. All activities are conducted according to national laws and regulations, and in line with Svenska’s environmental policy. Svenska’s insurance programme has cover against financial exposure in the event of pollution.

Reserve estimations All oil reserve estimates involve uncertainties that for the most part are beyond Svenska’s control. Estimates are mainly based on available geological, geophysical and technical data with varying reliability. If present estimates should be proven smaller, it would have a negative impact on Svenska’s long-term financial position and result.

FUTURE EXPECTATIONS How the oil price will develop in the coming year is always very uncertain. Svenska’s view of the oil price is that it most likely will remain at or around the current price level, however the market is sensitive to supply disruptions that can lead to price spikes. The global demand continues to grow year-on-year which supports the long-term price. Svenska has over recent years funded its investments through operating cash flow and will continue to do so. The balance sheet will remain strong with excellent debt-to-capital ratios compared to peer companies.

THE WORK OF THE BOARD The Board of Directors, which had three members at the end of the year, held six (seven) meetings during the past year.

PROPOSED APPROPRIATION OF PROFITS The following profits are at the disposal of the Annual General Meeting of Shareholders (in SEK):

Retained profits 3,529,244,755Net profit for the year 12,827,257Total 3,542,072,012

The Board of Directors hereby propose unrestricted equity to be distributed as follows:Brought forward: 3,542,072,012

For additional information regarding the Company’s result and financial status please refer to the income statement, balance sheet as well as the notes to the Financial Statements.

40 | Svenska Annual Report 2019 | Business Review

Consolidated Statement of Profit and Loss and Other Comprehensive Income1 January - 31 December

Amounts in USD thousand Note 2019 2018

Revenue from oil & gas 2 190,914 171,555

Other Revenue 2, 3 585 871

Total 191,499 172,426

Operational and exploration costs 5 -42,324 -40,181

Oil price derivatives -14,981 9,378

Other external costs 7, 23 -3,148 -9,194

Employee benefits expenses 6 -10,761 -9,945

Depreciation, write-downs 2, 10 -44,136 -34,517

Other operating expenses 4 -231 -121

Operating profit 2 75,918 87,846

Finance income 8 788 571

Finance costs 8 -19,165 -7,925

Net finance items -18,377 -7,354

Profit before tax 57,541 80,492

Tax on profit for the year 9 -15,647 -25,367

PROFIT FOR THE YEAR 41,894 55,125

Other comprehensive income

Items that are or may be reclassified to profit/loss:

Exchange differences for the year -764 -2,272

Items that will never be reclassified to profit/loss:

Remeasurements of defined-benefit asset 52 -211

Taxes relating to items that will not be reclassified - 43

Total other comprehensive income for the year -712 -2,440

Total comprehensive income 41,182 52,685

42 | Svenska Annual Report 2019 | Financial Report

/ GROUP

Consolidated Statement of Financial PositionAmounts in USD thousand Note 31 Dec 2019 31 Dec 2018

ASSETS

Intangible assets 11 257,955 244,825

Tangible fixed assets 12 439,017 426,153

Financial assets (lease) 23 31,228 -

Financial investments 13 1,156 49

Other non-current receivables 14, 18 431 396

Deferred tax assets 9 40 27

Total non-current assets 729,827 671,450

Current assets

Drilling equipment and consumable supplies 15 14,339 19,098

Trade receivables 16 12,749 18,619

Receivables in Group companies 5,397 5,605

Prepayments and accrued income 17 27,798 31,630

Other receivables 715 1,105

Tax receivables 327 264

Financial investments 13 659 13,447

Cash and cash equivalents 29 34,489 38,545

Total current assets 96,473 128,313

TOTAL ASSETS 826,300 799,763

Financial Report | Svenska Annual Report 2019 | 43

/ GROUP

Equity and Liabilities31 December

Amounts in USD thousand Note 31 Dec 2019 31 Dec 2018

Equity

Share capital 7,350 7,350

Reserves 35,466 36,146

Retained earnings, incl. profit for the year 572,631 559,977

Total equity 615,447 603,473

Liabilities

Deferred tax liabilities 9 54,050 47,970

Long-term interest-bearing liabilities 30 52,000 72,000

Other provisions 19 25,772 23,355

Leasing long term 23 28,957 -

Total non-current liabilities 160,779 143,325

Trade payables 10,478 2,035

Other liabilities 20 2,181 5,745

Accruals and deferred income 21 34,927 45,185

Leasing short term 23 2,488 -

Total current liabilities 50,074 52,965

Total liabilities 2 210,853 196,290

TOTAL EQUITY AND LIABILITIES 826,300 799,763

Information regarding Group contingencies and pledged assets, see Note 25.

44 | Svenska Annual Report 2019 | Financial Report

/ GROUP

Consolidated Statement of Changes in EquityAmounts in USD thousand

Sharecapital

Translationreserve

Remeasurements of defined-benefit

obligations

Retained earnings incl.

net profit/loss Total equity

Opening equity balance 1 Jan, 2018 7,350 37,834 752 506,944 552,880

Profit/loss for the year - - - 55,125 55,125

Other comprehensive income for the year - -2,272 -168 -2,440

Paid dividends to owner - - - -2,092 -2,092

Total comprehensive income for the year - -2,272 -168 53,033 50,761

Closing equity balance 31 Dec, 2018 7,350 35,562 584 559,977 603,473

Profit/loss for the year - - - 41,894 41,894

Other comprehensive income for the year - -764 84 - -680

Paid dividends to owner - - - -29,240 -29,240

Total comprehensive income for the year - -764 84 12,654 11,973

Closing equity balance, Dec 2019 7,350 34,798 668 572,631 615,447

Financial Report | Svenska Annual Report 2019 | 45

/ GROUP

Consolidated Statement of Cash Flows1 January - 31 December

Amounts in USD thousand Note 2019 2018

Indirect method

Operating activities

Profit before tax1 57,541 80,492

Adjustment for non-cash items 29 55,172 23,772

Total 112,713 104,264

Taxes paid -206 -702

Total 112,507 103,562

Cash flow from changes in working capital

Decrease(+)/increase(-) in inventories 4,787 9,770

Decrease(+)/increase(-) in operating receivables 10,033 -24,986

Decrease(-)/increase(+) in operating liabilities -9,325 1,342

Cash flow from operating activities 118,002 89,688

Investing activities

Acquisition of intangible assets 11 -14,313 -1,607

Acquisition of tangible fixed assets 12 -54,558 -76,296

Increase in financial assets -2,193 -2,369

Cash flow from investing activities -71,064 -80,272

Financing activities

Proceeds from borrowings 29 - 72,000

Repayment of borrowings 29 -20,000 -67,313

Dividend paid -29,936 -2,092

Cash flow from financing activities -49,936 2,595

Cash flow for the year -2,998 12,011

Cash & cash equivalents at beginning of year 38,545 28,403

Exchange differences -1,058 -1,869

Cash & cash equivalents at end of year 34,489 38,545

1) The amount includes interest received of USD 416 (179) thousand, and interest paid of USD 9,657 (7,162) thousand. For supplementary information to the consolidated cash flow statement, see Note 29.

46 | Svenska Annual Report 2019 | Financial Report

/ GROUP

GENERAL INFORMATIONSvenska Petroleum Exploration AB is a limited company, which is incorporated in Sweden and has its registered office in Stockholm. Headquarters are located at Biblioteksgatan 29, SE-114 35 Stockholm, Sweden.  The consolidated statement of comprehensive income and statement of financial position and the Parent Company’s income statement and statement of financial position will be presented for adoption at the annual general meeting.

STATEMENT OF COMPLIANCE With effect from 1 January 2013, Svenska Petroleum Exploration AB prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), as adopted by the EU. In addition, the Swedish Financial Reporting Board’s recommendation RFR 1 Supplementary Accounting Rules for Groups has been applied. RFR 1 is issued by the Swedish Financial Reporting Board.  The Parent Company applies the same accounting policies as the Group, except in the cases described below in the section entitled “The Parent Company’s Significant Accounting Policies – Note 100.” Any differences are due to limitations in the ability to apply IFRS in the Parent Company as a result of the provisions of the Swedish Annual Accounts Act and the Pension Obligations Vesting Act.

BASIS OF PREPARATION OF THE CONSOLIDATED AND PARENT COMPANY FINANCIAL STATEMENTSAssets and liabilities are measured at historical cost, apart from certain financial assets and liabilities, which are measured at fair value. The financial assets and liabilities that are measured at fair value consist of derivatives classified at fair value through profit or loss. Pension obligations are reported as a net between the present value of defined-benefit obligation and the fair value of plan assets.

FUNCTIONAL CURRENCY AND REPORTING CURRENCYThe Parent Company’s functional currency is the Swedish krona (SEK), which is also the presentation currency for the Parent Company. The consolidated financial statements are presented in US dollars since that is the currency in which the majority of the Group’s transactions are denominated. All amounts are rounded to the nearest thousand, unless otherwise stated. For the preparation of the annual financial statements, the following currency exchange rates have been used:

Note 1 - Significant accounting policies

JUDGEMENTS AND ACCOUNTING ESTIMATES IN THE FINANCIAL STATEMENTSPreparation of financial reports in accordance with IFRS requires use of a number of significant accounting estimates. In addition, management is required to make certain judgements when applying the Company’s accounting policies. Information about areas which are complex or involve a high proportion of assumptions and estimates, or areas where accounting estimates are of key significance to the consolidated financial statements, can be found in Note 28.

NEW ACCOUNTING PRINCIPLES FROM 2019 IFRS 16 Leases, applied as from 1 January 2019, amends the rules for lease accounting and replaces the previous IAS 17 standard and related interpretations. The main objective of IFRS 16 is the recognition of all leases in the statement of financial position. Accordingly, lessees are no longer required to classify their leases as either finance leases or operating leases. Instead, they will be required to recognise a right-of-use asset and a lease liability for all leases in their statement of financial position. In the Svenska Petroleum Exploration Group (SPE Group), the lease liability is measured on the basis of the outstanding lease payments discounted using the incremental borrowing rate, while the right-of-use asset is always measured at the amount of the lease liability adjusted for any prepaid or accrued lease payments plus initial direct costs. During the lease term, the right-of-use asset must be depreciated and the lease liability adjusted using the effective interest method while taking lease payments into account. IFRS 16 offers practical expedients for short-term and low-value leases that the SPE Group applies and therefore does not recognise right-of-use assets or liabilities for these types of leases. In this respect, the lease payments will continue to be recognised in the income statement in the same way as before. At the initial application date, leases whose term ends before 1 January 2020 were reclassified as short-term leases, irrespective of the start date of the lease.  The SPE Group accounts for leases in accordance with IFRS 16, using the modified retrospective method for the first time as of 1 January 2019. Prior-year periods have not been restated. According to this method, the lease liability had to be recognised at the present value of the outstanding lease payments at the transition date. The present value calculation was based on the incremental borrowing rates as of 1 January 2019. The weighted average interest rate applied in the SPE Group was 9.3 per cent.  The right-of-use assets are mainly due to contracts regarding the FPSO in the Ivory Coast, office rents in London and Stockholm and car leases. For the purpose of simpli-fication the right-of-use assets were recognised at the amount of the corresponding lease liability, adjusted for any prepaid or accrued lease payments. In addition, existing leases were not reassessed at the initial application date to determine whether or not they are leases under the criteria of IFRS 16. Instead, contracts classified as leases under IAS

Financial Report | Svenska Annual Report 2019 | 47

1 USD equals SEK

2019 2019 2018 2018

Average Period end Average Period end

9,424942 9,3171 8,688928 8,971

/ GROUP

17 or IFRIC 4 will continue to be accounted for as leases. The right-of-use assets are recognised in the statement of financial position under those items in which the assets underlying the lease would have been reported if they were owned by the SPE Group. For this reason, the right-of-use assets are presented under tangible assets.  The initial recognition of right-of-use assets and lease liabilities had the following effects as of 1 January 2019: • Right-of-use assets amounting to USD 33,673 thousand were recognised in the opening balance. • Lease liabilities in an amount of USD 33,891 thousand were recognised in the statement of financial position and reported under noncurrent and current financial liabilities. • Initial application did not have any effect on equity.  The difference between the expected payments for operating leases in an amount of USD 35,494 thousand discounted using the incremental borrowing rate as of 31 December 2018, and the lease liabilities in an amount of USD 33,891 thousand recognised in the opening balance was mainly due to the reassessment of lease terms in accordance with IFRS 16. In this process, reasonably certain extension or termination options were taken into account in determining the lease payments to be capitalised. Moreover the opening balance does not include lease payments for low-value and short-term leases.  Unlike the previous procedure, under which all operating lease expenses were reported under operating income, under IFRS 16 depreciation charges on right-of-use assets are allocated to operating income. Interest expense from adding interest on lease liabilities is reported in net financial items. The change in the way expenses from operating leases are presented in the cash flow statement resulted in an improvement in cash flows from operating activities. Cash flows from financing activities declined accordingly. The increase in financial liabilities attributable to IFRS 16 had a negative impact on SPE Group’s net debt.  This standard also results in far more extensive disclosures in the notes. AMENDED ACCOUNTING POLICIES Other changes in standards and interpretations that enter into force on 1 January 2019 or subsequently are not expected to have any material impact on SPE Group accounting.

SIGNIFICANT ACCOUNTING POLICIES APPLIED The Group’s significant accounting policies are described below:

OPERATING SEGMENT REPORTING An operating segment is a component of the Group that engages in business activities from which it may generate revenues and incur expenses, and for which discrete financial information is available. Group management monitors the performance of an operating segment in order to evaluate it and allocate resources to the operating segment.  See Note 2 for a further description of the classification and presentation of operating segments.

CLASSIFICATION Non-current assets and liabilities are essentially amounts that are expected to be recovered or paid more than twelve months after the reporting date. Current assets and liabilities are essentially amounts that are expected to be recovered or paid within twelve months of the reporting date.

BASIS OF CONSOLIDATION Subsidiaries Subsidiaries are companies over which Svenska Petroleum Exploration AB has a controlling influence. A controlling influence is present if Svenska Petroleum Exploration AB has influence over the investment object, is exposed to or has the right to variable return by virtue of its involvement, and can exert its control over the investment to influence returns. Potential share voting rights and the existence or non-existence of de facto control are factors in determining whether controlling influence exists. Subsidiaries are consolidated according to the acquisition method of accounting, whereby the acquisition of a subsidiary is regarded as a transaction in which the Group indirectly acquires the subsidiary’s assets and assumes its liabilities. The acquisition analysis defines the acquisition date fair value of the identifiable assets acquired, liabilities and any non-controlling interests. Acquisition related costs that arise, with the exception of those attributable to the issue of equity or debt instruments, are recognised directly in profit/loss for the year. With effect from 1 January 2010, the Group applies the revised IFRS 3 “Business Combinations” and the amended IAS 27 “Consolidated and Separate Financial Statements”. The contingent consideration is measured at fair value on the acquisition date and the effects of the remeasurement of liabilities related to the contingent consideration are recognised as income or expense in profit/loss for the year. There are two options for measuring non-controlling interest (NCI) and goodwill: either fair value (or the full goodwill method) and the NCI’s proportionate share of the net assets of the acquiree. The choice between these two methods is made individually for each acquisition. Moreover, additional acquisitions that take place after control has been achieved are considered to be owner transactions and are recognised directly in equity.

ACQUISITIONS MADE BETWEEN 1 JANUARY 2004 AND 31 DECEMBER 2009For acquisitions made between 1 January 2004 and 31 December 2009 where the cost exceeds the fair value of acquired assets, assumed liabilities and contingent liabilities (recognised separately), the difference is reported as goodwill. If the difference is negative, this is recognised directly in profit/loss for the year. Transaction costs, with the exception of transaction costs attributable to the issue of equity or debt instruments that arise, are included in the acquisition cost.

48 | Svenska Annual Report 2019 | Financial Report

/ GROUP

TRANSACTIONS ELIMINATED ON CONSOLIDATIONIntra-group receivables and liabilities, income and expenses, and unrealised gains or losses arising from intra-group transactions are eliminated in full when preparing the consolidated financial statements. Unrealised gains on transactions with associates and jointly controlled entities are eliminated to the extent that corresponds to the Group’s interest in the company. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no indication of impairment.

FOREIGN CURRENCYForeign currency transactionsTransactions in foreign currency are translated into the functional currency according to the exchange rates prevailing at the date of the transaction. Foreign currency monetary assets and liabilities are translated into the functional currency using the exchange rates prevailing on the reporting date. Foreign exchange differences arising on translation are recognised in profit or loss. Non-monetary assets and liabilities recognised at historical cost are translated using the exchange rates prevailing at the date of the transaction. Non-monetary assets and liabilities recognised at fair value are translated into the functional currency using the exchange rates prevailing at the date of the fair value measurement. Subsequent exchange gains and losses are reported in the same way as other value changes relating to the asset or liability. Exchange differences arising on foreign currency loans and which relate to investments in independent foreign operations are recognised in other comprehensive income and are accumulated in a separate component of equity, the translation reserve. When foreign operations are disposed, cumulative exchange differences are recognised in profit or loss. The functional currency is the currency of the primary economic environment in which the Group conducts business. Companies within the Group are the Parent Company and subsidiaries. The Parent Company’s functional currency and presentation currency is the Swedish krona. The Group’s presentation currency is US dollar.

Financial statements of foreign operations The assets and liabilities of foreign entities, including goodwill and other fair value adjustments arising on consolidation, are translated into US dollars using the exchange rate prevailing at the reporting date. The income and expenses of foreign entities are translated into US dollars using an average exchange rate that is an approximation of the rates prevailing at each transaction date.  Exchange differences arising on translation of a foreign net investment are recognised in other comprehensive income and accumulated in the translation reserve, which is a separate component of equity. On disposal of a foreign operation, the cumulative exchange differences are reclassified from equity to profit or loss as a reclassification adjustment at the time the gain or loss on disposal is recognised.

JOINT CONTROLLED OPERATIONSThe Group engages in oil and gas operations as a joint controlled partner with other parties. These types of arrangements are usually structured through joint operating agreements (JOA) that regulate entitlements and obligations. In conclusion, the partners of a jointly controlled operation are independent parties, meaning that costs and revenue are distributed between the partners and each party is independently responsible for its share. Produced oil is divided between the parties according to the agreement and each party is separately responsible for the sale of oil. If a party is not able to pursue its financial obligations the other parties are obliged to cover the costs. The Group’s interests in jointly controlled licences are accounted for using the proportionate consolidation method, which means that the consolidated financial statements include the Group’s proportionate share of production, investment costs, operating income and expenses, current assets and current liabilities.

REVENUE RECOGNITIONThe actual production of crude oil is recognised as revenue with the associated costs in the current period. The right to the crude oil normally arises under production-sharing contracts as the oil is produced. The method of revenue recognition is based on observable market prices and a minimal risk to the seller in terms of sales and distribution. Sales arrangements for oil in jointly owned oil and gas assets are frequently such that it is not practicable for each participant to sell its precise contractual share during the period. Any imbalance between production and sales for each participant is referred to as an overlift or underlift. If the difference between production and actual sales is positive, it is reported as accrued income (underlift). If the difference is negative, it is reported as an accrued expense (overlift). Both underlift and overlift are measured at fair value at the reporting date.

OPERATING EXPENSES, FINANCE INCOME AND FINANCE COSTSLeasesAccounting policies applied from 1 January 2019When a contract is concluded, the Group determines whether the agreement is, or contains, a lease. A contract is, or contains, a lease if the contract leaves the right to decide for a certain period the use of an identified asset in exchange for compensation.  The Group recognises an asset in use and a leasing debt at the start date of the lease. The asset of utilisation is initially valued at cost, which consists of the initial value of the lease debt with a supplement for leasing fees paid at or before the start date plus any initial direct expenses. The asset of utilisation is written off linearly from the initial date to the earlier end of the asset’s useful life and the end of the lease period, which is normally the end of the lease period. The leasing debt – which is divided into the long-term and short-term part – is initially valued at the present value of the remaining leasing fees during the assessed lease period.

Financial Report | Svenska Annual Report 2019 | 49

/ GROUP

The leasing period consists of the non-reputable period supplementing additional periods in the contract if it is deemed reasonably certain at the start date that they will be used. Leasing fees are normally discounted by the Group’s marginal borrowing rate, which, in addition to the Group/Company’s credit risk, reflects the leasing period, currency and quality of underlying asset as intended collateral. The value of the debt is increased by the interest cost of each period and reduced by the leasing payments. The interest cost is calculated as the value of the debt times the discount rate. The leasing liability for the Group´s premises with rent as indexed is calculated on the rent that applies at the end of each reporting period. At this time, the debt is adjusted by the corresponding adjustment for the carrying amount of the leasing asset. Similarly, the value of the debt and the asset is adjusted in connection with the reassessment of the leasing period. This occurs when the last notice date within the previously assessed lease period for local leases has been passed or when significant events occur or the circumstances are significantly changed in a way that is within the control of the SPE Group and affect the current assessment of the lease period.  For leases having a leasing period of 12 months or less or with an underlying low-value asset, less than USD 5 thousands, no right-of-use asset and lease debt are recognised. The leasing costs of these leases are allocated on a linear basis over the lease contract period.

Accounting policies applied up to 31 December 2018A lease is classified as an operating lease when it does not transfer substantially all the risks and rewards incidental to ownership. Payments made under operating leases are recognised as an expense on a straight-line basis over the lease term. The Group has no outstanding significant finance leases.

Finance income and costsFinance income and costs comprise interest income from bank deposits and receivables and interest-bearing securities, interest payable on borrowings, dividend income, exchange differences and unrealised gains and losses on financial investments. Interest expenses and other costs related to external loans including issue expenses and similar expenses are reported as financial expenses. Issue expenses and similar expenses for direct transactions concerning loans are allocated over loan life. The present value effect when calculating revenue from dividends is recognised when the right to receive payment is established.

TAXESThe Group’s income tax consists of current tax and deferred tax. Income taxes are recognised in the income statement, unless the underlying transaction is recognised in other comprehensive income or in equity, in which case the associated tax effect is recognised in other comprehensive income or in equity. Current tax is tax that must be paid or received in respect of the current year. This also includes any adjustment of current tax attributable to previous periods. Deferred tax is provided using the statement of

financial position liability method. A deferred tax asset/liability is recognised for temporary differences between the carrying amounts of assets and liabilities and their corresponding tax bases. Amounts are calculated based on how the temporary differences are expected to be settled and by applying the tax rates enacted or substantively enacted by the reporting date.  No deferred tax is recognised for temporary differences relating to investments in subsidiaries and joint ventures that are not expected to be taxed in the foreseeable future. Deferred tax assets on temporary differences and deferred tax assets arising from the carryforward of unused tax losses are only recognised to the extent that it is probable that they will be recoverable in future periods.

FINANCIAL INSTRUMENTSFinancial instruments reported under assets in the statement of financial position include cash and cash equivalents and trade receivables, loan receivables and derivatives. Financial instruments reported under equity and liabilities include trade payables, loan payables and derivatives.

Recognition and derecognition in the statement of financial positionA financial asset or liability is recognised in the statement of financial position when the company becomes a party to the instrument’s contractual terms. A receivable is recognised when the company has performed and the counterparty has a contractual obligation to pay, even if an invoice has not yet been sent. Trade receivables are recognised in the statement of financial position when invoices are sent. A liability is recognised when the counterparty has performed and there is a contractual obligation to pay, even if an invoice has not yet been received. Trade payables are recognised when invoices are received. Financial assets are derecognised in the statement of financial position when the rights under the contract have been realised, have expired or the company loses control over them. The same applies to a part of a financial asset. Financial liabilities are derecognised in the statement of financial position when the contractual obligation has been discharged or extinguished in some other way. The same applies to a part of a financial liability. A financial asset and a financial liability may be offset and the net amount presented in the statement of financial position when, and only when, the company has a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Purchases and sales of financial assets are recognised on the trade date (the commitment date), apart from purchases and sales of listed securities, which are recognised on the settlement date.  Cash and cash equivalents consist of cash, demand deposits with banks and similar institutions, as well as short-term deposits with an original maturity of 3 months or less, which are subject to an insignificant risk of change in value.

50 | Svenska Annual Report 2019 | Financial Report

/ GROUP

Classification and measurementFinancial instruments are initially recognised at fair value with the addition of transaction costs for all financial instruments except derivative instruments that are initially recognised at fair value, which means that transaction costs are posted to the statement of income for the period. After the initial recognition, derivative instruments are recognised at fair value with changes in value to profit or loss.

Financial assets A financial asset is measured at accrued cost if it is in line with both of the following terms and is not identified as measured to fair value through the financial statement of income:

– it is held within the framework of a business model whose objective is to hold financial assets in order to obtain contractual cash flows, and– the contractual terms for the financial asset give rise at specific times to cash flows which are only payments of capital amounts and interest on the outstanding balance.

Amortised cost is calculated based on the effective interest method used at initial recognition. Accounts receivable are recognised at the amounts expected to be received. The Group markets its production to a wide range of major oil companies on an arm´s length basis. Since the production is already called off, the risk of doubtful accounts is very low.

Financial liabilitiesLoans and other financial liabilities, such as trade payables, are measured at amortised cost. The categories to which the Group’s financial assets and liabilities have been allocated are shown in Notes 16 (Trade receivables), 29 (Cash and cash equivalents) and 20 (Liabilities).

INTANGIBLE ASSETSExploration costsThe Group uses the successful-efforts method when capitalising exploration costs. The method means that all exploration costs in the oil licences in which Svenska has an interest, indirectly through contracts, are capitalised as intangible assets, pending determination of commercially recoverable reserves. Directly attributable costs, such as administrative costs, are capitalised only to the extent that they can be related to specific exploration activities. No continuous depreciation is reported under the successful-effort method. If an exploratory well is in progress at the end of an accounting period and the well is determined not to be successful at that time, the capitalised costs are written down. Following the discovery of a commercially viable field, the intangible assets are reclassified as tangible fixed assets. This type of reclassification is always preceded by impairment testing. Impairment testing is also performed annually for assets considered to be commercial discoveries, but for which an expansion decision has not been made.

TANGIBLE FIXED ASSETS Oil and gas assets or exploration costsTangible fixed assets consist of oil and gas assets, construction in progress and equipment. The statement of financial position item oil and gas assets relates to the Group’s interests in oil licences. Investment and construction costs are allocated to the Group by invoices from the operator in the oil and gas assets in which the Group is a partner. Tangible fixed assets are recognised at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended.

DepreciationCapitalised expenses are depreciated from the start of production. Depreciation is calculated according to the unit-of-production method, which is based on the year’s production and its relation to proven and probable reserves of oil. The basis for calculating the unit of production consists of the estimated investments over the life of the field. Proven oil and gas reserves are defined as the estimated amount of crude oil, natural gas and liquid natural gas which, on the basis of geological and engineering data provided by the operator of the field or an independent party, and with reasonable probability (higher than 90 per cent), can be extracted in the future from known reserves within the current economic and operational environment, i.e. oil prices and costs at the date of the calculation.  Probable reserves are unproven reserves which, on the basis of analyses of geological and engineering data, are considered more likely than not to be recoverable. In this context, it is considered that there should be at least 50 per cent probability that the extracted quantities will equal or exceed the sum of proven and probable reserves. Machinery and equipment (excluding computers) is depreciated over five years. Computers and computer equipment are depreciated over three years.

IMPAIRMENT If a change in economic conditions indicates a possible decline in the value of a fixed asset, the net carrying amount of the asset is assessed by comparison with its estimated discounted future net cash flows. The calculation is based on management’s assessment of future oil prices and costs. An impairment loss is recognised if the carrying amount exceeds the discounted present value of the cash flows. The impairment loss is reversed if the carrying amount is lower than the discounted present value of the cash flows. Licences that are in the exploration phase are not subjected to impairment testing. Impairment testing is normally done during reclassification to the statement of financial position item construction in progress.

Financial Report | Svenska Annual Report 2019 | 51

/ GROUP

Reversal of impairment losses Impairment of assets is reversed if there is an indication that the impairment no longer exists and there has been a change in the assumptions on which the calculation of recoverable amount was based. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation where applicable, had no impairment loss been recognised.

INVENTORIESInventories are recognised at the lower of cost and net realisable value. Cost is determined using the first-in, first-out method (FIFO).

OVERLIFT AND UNDERLIFTOverlift and underlift are described in revenue recognition.

EMPLOYEE BENEFITSThe Group has a number of different pension plans for its employees. In Sweden most of the pension plans for employees are defined-benefit plans, except for the CEO and management team of SPE AB, who have a defined contribution plan. The pension arrangements for the branch in the UK are defined-contribution plans.  Defined-contribution plans are plans under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further contributions. The Group’s profit (loss) is charged with expenses as the benefits are earned. With defined-benefit plans, employees and former employees receive benefits on the basis of salary upon retirement and the number of years’ service. The Group bears the risk that the defined benefits are paid.  The defined-benefit plans are funded. This means the assets have been placed in a separate pension fund, managed by Folksam. These managed assets can only be used to pay benefits in accordance with the pension agreement. The net present value of the obligations and the fair value of plan assets are reported as a long-term financial receivable or pension provision in the statement of financial position. Pension costs and pension obligations for defined-benefit pension plans are calculated using the projected unit credit method. This method allocates the cost of pensions as the employees render services to the company and thereby increase their entitlement to future benefits. The Company’s obligation is calculated annually. The pension obligation is measured as the present value of estimated future cash outflows. The discount rate is determined by reference to the interest rates for corporate bonds of a term consistent with the average term of the obligations and the currency. The main actuarial assumptions are described in Note 18. Revaluation effects consist of actuarial gains and losses and the difference between the actual return on plan assets and the amount included in net interest income. Actuarial gains and losses arise either because the actual outcome differs from the previous assumptions (experience adjustments) or as a result of changed assumptions. The revaluation effects are recognised in other comprehensive income as soon as

they occur. Net interest expense/income on the defined-benefit obligation/asset is recognised in profit/loss for the year under net financial items. Net interest income is based on the interest arising on discounting of the net obligation, i.e. interest on the obligation and the plan assets. Other components are recognised in operating profit/loss.

PROVISIONSAbandonment costs At the end of the productive life of an oil field, costs associated with the removal and abandonment of the oil and gas facilities arise. The Group recognises the full discounted estimated costs of abandonment as a provision and a non-current asset when the obligation to rectify environmental damage arises. Where discounting is used, the increase in the provision over time is recognised as a finance cost. The non-current asset is depreciated according to the Group’s accounting policies for oil and gas assets.

Other provisionsA provision is recognised when the Group has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

CONTINGENT LIABILITIESA contingent liability is recognised when a possible obligation arises from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events, or when there is an obligation which is not recognised as a liability or provision because it is not probable that an outflow of resources will be required to settle the obligation.

ACCOUNTING POLICIES – PARENT COMPANYThe Parent Company’s annual financial statements have been prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities. The Swedish Financial Reporting Board’s statements for listed companies are also applied. RFR 2 requires the Parent Company, as a legal entity, to prepare its annual financial statements in compliance with all the IFRS and IFRIC interpretations adopted by the EU, to the extent possible within the framework of the Swedish Annual Accounts Act and the Swedish pension obligations Vesting Act, and taking into account the relationship between tax expense/income and accounting profit. The recommendation states which exceptions from and additions to IFRS shall be observed.  Cases where the Parent Company applies different accounting policies than the Group are stated separately in Note 100 to the Parent Company.

52 | Svenska Annual Report 2019 | Financial Report

/ GROUP

The Group´s operations are divided into operating segments based on the components that Svenska´s executive management reviews regularly. Svenska has identified the executive management as its operating decision maker. The Svenska Group´s operations are organised in such a way as to allow Group management to monitor and review income from the sale of oil and gas, operating profit (EBIT), investments, assets and liabilities of the Group´s different functions areas. Executive management reviews financial performance and decides on resource allocation between the areas covered by each function, which represent the operating segments. Svenska Group´s internal reporting is structured in such way as to allow the executive management to review the performance and result of of each function’s area. It is on the basis of this reporting that the Group´s segments have been identified.  In order to give complete understanding of the economic environment within the Group operations, the geographical areas are also reported. Intangible assets, oil and gas assets have been allocated to different segments. There are no sales between segments.

Total revenues1 2019 2018

Function:

Production2 190,956 171,415

Exploration 95 760

Business Development 14 4

Administration 434 247

Total 191,499 172,426

Geographical information

The Ivory Coast2 190,956 171,415

Guinea-Bissau 100 633

Nigeria -6 129

Ireland 2,407 2,402

United Kingdom 7,560 6,886

Sweden 3,931 3,661

Group internal transactions -13,449 -12,700

Total 191,499 172,426

1) Revenues relate only to external transactions.2) Revenues from gas and crude oil refer to external customers. Revenue is attributable to the country of sale.

Financial Report | Svenska Annual Report 2019 | 53

Note 2 - Segment Reporting

/ GROUP

Geographical information 2019 2018

The Ivory Coast -43,128 -34,333

United Kingdom -663 -47

Sweden -345 -137

Total -44,136 -34,517

Operating profit/loss1 2019 2018

Function:

Production 92,076 104,147

Exploration -3,572 -3,211

Business Development -6,659 -7,671

Administration -5,927 -5,419

Total 75,918 87,846

1) Internal costs are divided between the functions.

Note 2 - Cont.

Geographical information 2019 2018

The Ivory Coast 92,076 104,147

Guinea-Bissau -3,305 -3,403

Nigeria -788 -717

Ireland -611 501

United Kingdom 3,408 692

Sweden -14,862 -13,374

Total 75,918 87,846

54 | Svenska Annual Report 2019 | Financial Report

Depreciation, write-downs and abandonment costs, net 2019 2018

Function:

Production -43,128 -34,333

Business Development - -22

Administration -1,008 -162

Total -44,136 -34,517

/ GROUP

Technical team, working hours function 2019 2018

Function:

Production 14% 11%

Exploration 25% 28%

Business Development 32% 22%

Administration 30% 39%

Total 100% 100%

Geographical information 2019 2018

The Ivory Coast 19,481 8,310

Guinea-Bissau 39,091 37,322

Nigeria 199,370 199,156

Sweden 13 37

Total 257,955 244,825

Tangible oil and gas assets

Production 437,818 424,851

Other tangible assets

Administration 1,199 1,302

Total 439,017 426,153

Geographical information 2019 2018

The Ivory Coast 437,818 424,851

United Kingdom 1,100 1,185

Sweden 99 117

Total 439,017 426,153

Note 2 - Cont.

Financial Report | Svenska Annual Report 2019 | 55

Assets

Intangible oil and gas assets 2019 2018

Production 11,178 7

Exploration 246,764 244,781

Other intangible assets

Business Development 12 9

Administration 1 28

Total 257,955 244,825

/ GROUP

Financial assets leases 2019 2018

Production 29,920 -

Administration 1,308 -

Total 31,228 -

Geographical information 2019 2018

The Ivory Coast 29,920 -

United Kingdom 429 -

Sweden 880 -

Total 31,228 -

Geographical information 2019 2018

The Ivory Coast 65,690 76,281

Guinea-Bissau 2,915 1,317

Nigeria 214 283

Sweden 14 -

Total 68,833 77,881

Liabilities & provisions 2019 2018

Production 171,137 166,107

Exploration 24,719 25,308

Business Development 41 751

Administration 14,956 4,124

Total 210,853 196,290

Geographical information 2019 2018

The Ivory Coast 171,137 166,107

Guinea-Bissau 2,625 918

Nigeria 22,102 24,390

Ireland 1,436 445

United Kingdom 2,120 1,046

Sweden 11,433 3,384

Total 210,853 196,290

Income from external customers1 2019 2018

Customer1 190,914 171,555

1) Income from external customers, consisting of a large international oil company. Customer 1 is attributable to the Ivory Coast; percentage share of the Group’s revenue is 100% (99%). The customer’s registered office is outside the country.

56 | Svenska Annual Report 2019 | Financial Report

Note 2 - Cont.

/ GROUP

This year´s investments 2019 2018

Production 65,690 76,281

Exploration 3,129 1,600

Administration 14 -

Total 68,833 77,881

Management of certain operational and exploration costsSome costs may arise early in the business process due to clauses in production-sharing contracts. There may, for example, be royalty clauses, special agreements on payment of general taxes and agreements on bearing some of another party’s costs which by tradition in the industry are paid by deducting oil from the Group’s share of the produced oil. These costs are accounted for in the same way as other costs as they reduce the profit that would otherwise have risen.

Note 3 - Other Operating Income

2019 2018

Other operating income 444 706

Exchange gains 142 165

Total 585 871

Note 4 – Other Operating Expenses

2019 2018

Exchange losses -231 -121

Total -231 -121

Note 5 – Operational and Exploration Costs

2019 2018

Operating expenses -30,818 -28,522

Royalties -3,771 -3,424

Oil tax, operational -7,420 -6,745

Gas tax, operational -121 -107

Exploration and project expenses -194 -1,383

Total -42,324 -40,181

Note 6 – Employee Benefit ExpensesInformation on employee benefit expenses in the Parent Company can be found in Note 105 for the Parent Company.

2019 2018

Average number of employees Employees whereof male Employees whereof male

Parent

Sweden 13 9 16 11

United Kingdom 12 8 11 7

Total, Group 25 17 27 18

Financial Report | Svenska Annual Report 2019 | 57

/ GROUP

2019 2018

Executive management, Group 8 8

Gender distribution, executive management (female representation in %)

Parent

Board 0% 0%

Other senior executives 13% 0%

Total, Group

Board 0% 0%

Other senior executives 13% 0%

2019 2018

Salaries and other benefitsSenior

executivesOther

employeesSenior

executivesOther

employees

Parent

Sweden 1,667 974 1,641 1,304

-of which bonuses to senior executives 497 - 395 -

United Kingdom 3,307 1,165 2,778 943

-of which bonuses to senior executives 1,080 - 835 -

Group total 4,974 2,138 4,419 2,247

2019 2018

Other personnel costs, pension

Seniorexecutives

Other employees

Seniorexecutives

Other employees

Parent

Pension costs 589 539 497 566

Group total 589 539 497 566

Other personnel costs

Parent 474 651 214 488

Group - - - 47

Group total 474 651 214 535

Subtotal 6,038 3,328 5,130 3,348

Social security contributions, total 956 439 923 544

Personnel costs, total - 10,761 - 9,945

Note 6 – Cont.

58 | Svenska Annual Report 2019 | Financial Report

/ GROUP

Mr. Fredrik Öhrn, CEO of SPE AB (and Petroswede AB) received during 2019 a fixed salary of USD 599 (553) thousands, a bonus of USD 212 (202) thousands and other benefits of USD 16 (14) thousands. His pension costs for the year amounted to USD 232 (171) thousands. The CEO of SPE AB (and Petroswede AB) has a formally agreed period of notice from the Company’s side. Pension premiums amount to 30 per cent of pensionable salary with regard to retirement pension and survivors’ pension. Pensionable salary means the basic salary plus an average of the variable pay over the last three years. Other senior executives (not Board members) have a similar type of pension agreement, but at a lower percentage.

Note 7 – Auditors’ Fees and other Remuneration

Fees to auditors during the year 2019 2018

KPMG

Annual audit 42 63

Tax advisory services 15 25

Other services 6 9

Other Audits

Annual audit 49 57

Tax advisory services 26 15

Other services - 5

Total 138 174

Fees paid to directors 2019 2018

Sheikh Mohammed H. Al-Amoudi - 58

Jason Milazzo 53 43

Richard Öhman 21 23

Petter Holland 21 -

Jamal Mohammed A. Ba-Amer - 23

Total 95 147

Note 8 – Finance Income and Costs

2019 2018

Interest income on bank deposits 788 571

Finance income 788 571

Group contribution to Petroswede Europe -7,654 -

Net exchange differences 658 2,520

Interest expense on financial liabilities measured at amortised cost -9,333 -11,752

Present value adjustment of provisions (Note 19) 1,386 1,307

Interest expense on leases -2,871 -

Other financial costs -1,351 -

Finance costs -19,165 -7,925

All interest rates relate to items that are not measured at fair value.

Financial Report | Svenska Annual Report 2019 | 59

Note 6 – Cont.

/ GROUP

Note 9 – Taxes Specification of tax income 2019 2018

Tax expense (-) income (+) for the period -8,755 -7,967

Adjustment of tax in respect of prior years -4 -293

Current tax expense -8,759 -8,260

Deferred tax from temporary differences1 -6,888 -17,107

Deferred tax -6,888 -17,107

Total recognised tax expense (-) income (+) for Group -15,647 -25,367

Reconciliation of effective tax

Profit/loss before tax 57,540 80,492

Tax at Swedish enacted tax rate 21.4% (22%) -12,314 -17,708

Non-deductible expenses -4,891 -4,793

Non-taxable income - 3,305

Tax effect, petroleum tax Ivory Coast - -1,368

Effect of different tax rates for foreign subsidiaries -123 -134

Exchange effects2 - -5,570

Other items 1,530 -156

Deferred tax due to changes in tax rates 154 1,350

Tax attributable to prior years -4 -293

Recognised tax expense (-) income (+) -15,647 -25,367

Effective tax 27.2% 31.5%

1) Deferred tax expense as a result of utilisation of tax-related depreciations amounts to USD -6,710 thousand.2) “Exchange effects” refers to exchange effects in entities reporting in another currency than the legal currency.

60 | Svenska Annual Report 2019 | Financial Report

/ GROUP

Management of general taxes specific to the industryUnder certain contractual clauses, some general taxes may be paid early on in the business process.For example, there may be a host government agreement allowing use of part of the Group’s shareof the produced oil as payment of general taxes. This type of agreement is traditional in the industry.These taxes are accounted for in the same way as other taxes, even though the method of taxpayment differs. In one case, a higher corporate tax has been negotiated in production-sharing contracts for theextraction of crude oil. The amount of tax varies with the level of production. The portion of the corporatetax that exceeds the country’s standard corporate income tax is classified as an operational cost, eventhough it is legally viewed as a general tax. This tax is attributable to production in the Ivory Coast.

Recognised deferred tax assets and liabilitiesDeferred tax assets and liabilities relate to the following items.

31 Dec 2019

Deferredtax asset

Deferredtax liability Net

Exploration costs - -19,491 -19,491

Oil and gas assets - -31,945 -31,945

Loss carryforward - - -

Other long-term receivables (pension fund) - -89 -89

Provision for abandonment - -2,526 -2,526

Total - -54,050 -54,050

31 Dec 2018

Exploration costs - -19,490 -19,490

Oil and gas assets - -26,184 -26,184

Loss carryforward 27 - 27

Other long-term receivables (pension fund) - -82 -82

Provision for abandonment - -2,214 -2,214

Total 27 -47,970 -47,943

Financial Report | Svenska Annual Report 2019 | 61

Note 9 – Cont.

/ GROUP

Not recognised deferred taxDeductible temporary differences and taxable loss reliefs for which deferred tax assets have not been recognised in profit and loss statement and balance sheet.

Changes in deferred tax on temporary differences and loss carryforward

Group 31 Dec 2019

Amount atbeginning of year

Disclosed inincome

statementOther

changesAmount at

end of year

Exploration costs -19,490 122 -122 -19,490

Oil and gas assets -26,184 -6,710 949 -31,945

Other long-term receivables -82 -2 -5 -89

IFRS 16 - 40 -40 -

Loss carryforward 27 -27 - -

Provision for abandonment -2,214 -312 - -2,526

Total -47,943 -6,889 822 -54,050

Group 31 Dec 2018

Amount atbeginning of year

Disclosed inincome

statementOther

changes1Amount at

end of year

Exploration costs - -19,490 - -19,490

Oil and gas assets -46,898 18,105 2,609 -26,184

Other long-term receivables -149 21 46 -82

Loss carryforward 16,787 -15,514 -1,246 27

Provision for abandonment -1,990 -224 - -2,214

Total -32,250 -17,102 1,409 -47,943

Note 10 – Depreciation, Write-Downs and Abandonment Costs

2019 2018

This year’s depreciations, other intangibles 35 49

Depreciation - oil and gas assets

The Ivory Coast 41,553 34,334

This year's total depreciations oil and gas assets 41,553 34,334

Depreciation - Other

Equipment 102 134

Right-of-use assets 2,446 -

This year’s total depreciation and write-downs 44,136 34,517

62 | Svenska Annual Report 2019 | Financial Report

Note 9 – Cont.

/ GROUP

Financial Report | Svenska Annual Report 2019 | 63

Purchases include the value of exploration costs which are capitalised as pending assessment of commercially recoverable reserves.For estimated resources per field, see note 12.1) Relates to SEK companies in the Group.

Note 11 – Intangible AssetsExploration costs 31 Dec 2019 31 Dec 2018

Opening costs 329,719 333,188

Exchange differences1 -2,300 -5,076

Disposals1 -2,595 -

Additions 14,313 1,607

Closing accumulated cost 339,137 329,719

Opening impairment -84,894 -87,627

Exchange differences1 1,152 2,782

Disposals1 2,595

This year’s depreciations, other intangibles -35 -49

Closing accumulated impairment and end depreciation -81,181 -84,894

Carrying amount at end of period 257,955 244,825

Carrying amount per field Operator Participating interest %

31 Dec 2019 31 Dec 2018

Nigeria, OML 145 ExxonMobil 21.05% 199,370 199,158

Guinea-Bissau, Blocks 2, 4A and 5A Svenska 70.71% 39,091 37,322

The Ivory Coast, CI-40, Kossipo CNR 27.39% 19,481 8,310

Other intangibles - - 13 35

Total 257,955 244,825

/ GROUP

Note 12 – Tangible Fixed Assets

Oil andgas assets Equipment3 Total

Opening cost, 1 Jan 2018 680,765 3,621 684,386

Exchange differences - -254 -254

Investments 76,274 22 76,296

Reclassification1 -24 24 -

Closing accumulated cost, 31 Dec 2018 757,015 3,413 760,428

Exchange differences2 - -105 -105

Purchases 54,519 39 54,558

Closing accumulated cost, 31 Dec 2019 811,534 3,347 814,881

Opening depreciation, 1 Jan 2018 -297,851 -2,111 -299,962

Exchange differences - 156 156

Depreciation for the year -34,334 -135 -34,469

Reclassification2 23 -23 -

Closing accumulated depreciation, 31 Dec 2018 -332,162 -2,113 -334,275

Exchange differences -1 66 66

Depreciation for the year -41,553 -100 -41,654

Closing accumulated depreciation, 31 Dec 2019 -373,716 -2,147 -375,863

Carrying amount, 31 Dec 2018 424,854 1,300 426,153

Carrying amount, 31 Dec 2019 437,818 1,199 439,017

Oil and gas assetsCarrying amount per field 31 Dec 2019 31 Dec 2018

The Ivory Coast 437,818 424,853

Total 437,818 424,853

1) Relates to SEK companies in the Group.2) Relates to SEK companies in the Group.3) Equipment refers to Svenska Petroleum Exploration AB.

EquipmentCarrying amount at end of period 31 Dec 2019 31 Dec 2018

Svenska Petroleum Exploration AB 1,199 1,300

Total 1,199 1,300

64 | Svenska Annual Report 2019 | Financial Report

Resources and reserves, Svenska share Oil (mmbo) Gas (bcf)

Total (mmboe) Oil (mmbo) Gas (bcf)

Total (mmboe)

Reserves (2P)

The Ivory Coast, CI-40 Baobab 24.1 10.8 26.0 30.3 13.5 32.7

Resources (2C)

Guinea-Bissau, Block 2 Sinapa East 7.6 8.5 9.1 7.6 8.5 9.1

Ivory Coast, CI-40 Kossipo South 13.3 10.7 15.2 8.3 6.6 9.5

Ivory Coast, CI-40 Baobab Phase 5 11.4 5.8 12.4 12.0 6.7 13.2

Ivory Coast, CI-40 future potential 19.3 12.4 21.5 28.9 18.8 32.2

Nigeria, OML 145 Uge 58.7 51.6 67.9 58.7 51.6 67.9

Total Resources (2C) 110.4 88.9 126.2 115.5 92.2 131.9

2019* 2018*

* Source: 2P Svenska, Ivory Coast 2C Svenska, other field operator figures

/ GROUP

Financial Report | Svenska Annual Report 2019 | 65

Note 13 – Financial Investments

Financial investments held as non-current assets 31 Dec 2019 31 Dec 2018

Opening balance 49 53

Exchange differences 1,107 -4

Total 1,156 49

Financial investments held as current assets

Opening balance, put option 13,447 -3,185

Valuation -14,981 14,232

Up-front payment 2,193 2,400

Total 659 13,447

The Group is exposed to various financial risks and the most substantial is fluctuations in the Brent Oil price.In order to protect the Group from this exposure, the Group has hedged with put options, currently 100% of estimated production for 2020 is hedged at 55 USD/bbl. Financial assets are valued at fair value and reported in the profit and loss statement.

Note 14 – Other Non-Current Receivables

31 Dec 2019 31 Dec 2018

Pension fund (see Note 18) 431 396

Total 431 396

Note 15 – Drilling Equipment and Consumable Supplies

31 Dec 2019 31 Dec 2018

Drilling equipment and consumable supplies 14,339 19,098

Total 14,339 19,098

The equipment and supplies mainly relate to the CI-40 Baobab drilling campaign Phase 3 and Phase 4 but also preparations for the Sinapa Block 2 drilling campaign.

Note 16 – Trade Receivables

31 Dec 2019 31 Dec 2018

Trade receivables 12,749 18,619

Trade receivables - net 12,749 18,619

Trade receivables are related to the lifting schedule for Baobab.

Note 17 – Prepayments and Accrued Income

31 Dec 2019 31 Dec 2018

Prepaid rent 428 384

Prepaid insurance costs 249 290

Accrued income - 11,084

Prepaid project costs 9,994 10,823

Prepaid finance costs 4,303 5,687

Underlift 12,424 2,384

Other costs 400 978

Total 27,798 31,630

/ GROUP

66 | Svenska Annual Report 2019 | Financial Report

Note 18 – PensionsEmployees in Sweden are covered by defined-benefit pension plans, which mean that they are guaranteed a pensionequal to a certain percentage of their salary. Pension obligations for some of the employees are accounted for in the statement of financial position using the book reserve method and are funded through KP Stiftelse. These are mainly old-age pension obligations. The plan is closed. The plan assets are measured at market value. Employers may choose to invest their pension fund in various portfolios with different risk levels. The Group has chosen an investment portfolio with an asset allocation that is between low and high risk. All salaried employees in Sweden are covered by insurance with Alecta (ITP 1 and ITP 2). All payments are funded by the employer. ITP 1 is classified as a defined-contribution plan. According to the Swedish Financial reporting Board’s statement UFR 10, classification of ITP 2 plans financed by insurance in Alecta, this is a multi-employer defined-benefit pension plan. The Company did not have access to sufficient information for the 2019 fiscal year to report its proportionate share of the plan’s obligations, plan assets and costs, which meant that it was not possible to report the plan as a defined-benefit plan. Consequently, the ITP 2 pension plan insured through Alecta is reported as a defined-contribution plan. The Group’s share of total actives in ITP 2, Alecta amounts to 0.00207 (0.00221) per cent.

The amounts in the statement of financial position for defined-benefitobligation have been calculated as follows:

31 Dec 2019 31 Dec 2018

Present value of funded obligations 1,934 1,931

Fair value of plan assets 2,365 2,327

Funded plan 431 396

Surplus (+) or deficit (-)

Net amount recognised in statement of financial position

The net amount is recognised in the following items in the statement of financial position:

Other non-current receivables (see Note 14) 431 396

The amounts included in comprehensive income for the year are as follows: 2019 2018

Interest income 9 15

Net amount reported in comprehensive income 9 15

The net amount is recognised on the following lines in the comprehensiveincome for the year.

Finance income 49 63

Finance cost -40 -48

Amounts included in other comprehensive income

Remeasurements:

Actuarial gains (+) and loss (-) -167 -189

Return on plan assets 209 -22

Net amount reported in other comprehensive income 42 -211

/ GROUP

Financial Report | Svenska Annual Report 2019 | 67

Movement in the present value of the defined-benefit obligation 31 Dec 2019 31 Dec 2018

Opening balance: 1,931 2,031

Interest expense reported in the profit and loss statement -40 -48

Benefit payments -136 -141

Actuarial gain (-) and loss (+) due to changes in financial assumptions 218 183

Gain (-) and loss (+) due to experience assumptions -51 6

Effect of changes in foreign exchange rates 12 -100

Closing balance 1,934 1,931

Membership statistics

Vested deferreds 51.9% 51.8%

Retirees 48.1% 48.1%

Note 18 – Cont.

Movement in present value of plan assets 31 Dec 2019 31 Dec 2018

Opening balance: 2,327 2,733

Interest income reported in the profit and loss statement 49 63

Benefit from employers -136 -141

Return on plan assets 209 -22

Effect of changes in foreign exchange rates -84 -306

Closing balance 2,365 2,327

Plan assets distribution 31 Dec 2019 31 Dec 2018

Equity instruments 718 707

Debt securities 1,403 1,380

Properties 244 240

Total 2,365 2,327

Significant actuarial assumptions (expressed as weighted average) 2019 2018

Discount rate 1.50% 2.30%

The discount rate is based on corporate bonds that match the duration of the plan (15.4 years). An increase/decrease in the discount rate of 0.5% has no material impact on the obligation.

* The pension plan is closed to new entrants and includes only funds relating to previous years’ work.Therefore there is no effect from salary increase or staff turnover.

Other informationWeighted average duration of the defined-benefit obligation is 15.4 years.The Group estimates that approximately USD 132 thousands will be paid in 2020 to the defined-benefit plans and USD 48 thousands for the benefit-paid plans reported as defined-contribution plans.

Consolidated amounts for the Group 31 Dec 2019 31 Dec 2018

Total cost of defined-contribution plans and ITP 2 1,128 1,063

Total 1,128 1,063

/ GROUP

68 | Svenska Annual Report 2019 | Financial Report

Note 19 – Other Provisions

31 Dec 2019 31 Dec 2018

Provisions for abandonment costs

Opening balance 23,095 21,788

Present value adjustment (Note 8) 1,386 1,307

Carrying amount at the end of the period 24,481 23,095

Provisions per field

Baobab, the Ivory Coast 24,481 23,095

Total 24,481 23,095

Other provisions

Provision for technical reserves, PIC DAC (Captive) 1,292 260

Total, Group 25,772 23,355

The abandonment provision relates to expenses to shut down an oil field at the end of its life.The end for the Group’s oilfield (Baobab) is expected to incur 2038.

Note 20 – Other Liabilities

31 Dec 2019 31 Dec 2018

Licence liabilities 1,607 3,062

Employee taxes and tax liabilities 574 546

Provision for future licence costs - 2,137

Total 2,181 5,745

Note 21 – Accruals and Deferred Income

31 Dec 2019 31 Dec 2018

Accrued personnel expenses 2,749 2,196

Accrued project expenses 29,747 40,117

Financial items 1,807 2,377

Other items 624 495

Total 34,927 45,185

/ GROUP

Financial Report | Svenska Annual Report 2019 | 69

Note 22 – Financial Risks and PoliciesThe Group is exposed to a number of financial risks, the most important of which are described below. It is the responsibility of the Group’s management to manage risks according to the policy adopted by the Board. The Group has a centralised finance function which has the primary task of identifying, limiting and managing financial risks in a cost-efficient manner. The Group actively pursues liquidity planning, to continuously evaluate the need for liquidity. The main objective of this centralisation is to ensure good internal cost control as well as administrative and financial economies of scale.

Currency risk The Group’s business is international and, as such, it is exposed to currency risk in terms of exchange rate fluctuation. The foreign exchange exposure comprises transaction as well as translation risks.- The transaction risk, i.e. the risk that the commercial cash flows (revenues, expenses, investments, etc.) will be negatively affected by exchange rate fluctuations.- Translation risk, i.e. the risk that earnings in the Group will be negatively affected by the translation of foreign entities’ assets and liabilities into the Group’s reporting currency. It is the opinion of the Board that the present strong financial position justifies the policy of not hedging foreign exchange rates.

Transaction exposureThe Group’s transaction exposure for 2019 versus SEK was divided into the following currencies:

USD

Sales 190,914

Operating expenses -108,965

Net 81,949

Of which hedged 0

Group 2019 2018 2017

Currency Amount % Amount % Amount %

USD 489,477 79.5% 497,514 82.0% 461,977 85.0%

Translation exposureNet foreign assets as a percentage of total equity, divided among the following currencies:

On 31 December 2019, the Group did not have any hedging of net investments in foreign Group companies. The ambition is to minimise the translation risk wherever possible and economically viable.

The Group’s transaction exposure for 2018 was divided into the following currencies:

USD

Sales 171,555

Operating expenses -73,393

Net 98,162

Of which hedged 0

/ GROUP

Financial Report | Svenska Annual Report 2019 | 7170 | Svenska Annual Report 2019 | Financial Report

Interest rate risk Interest rate risk is the risk that changes in market interest rates will have a negative effect on the Group’s earnings. All interest-bearing assets and liabilities, except related parties, have a fixed-interest term of less than 12 months. The current assessment is that the Group’s present financial position justifies the absence of longer fixed-interest terms. Oil price risk The Group’s revenues, and hence its earnings, are highly dependent on oil prices. Historically, oil prices have fluctuated sharply – a trend which is expected to continue – and are affected by a number of factors beyond the Group’s control. The Group’s policy is to harness the positive effects of fluctuating oil prices and minimise the negative effects as far as possible. Consequently, the ability to use put options in particular as a hedging instrument is continually evaluated.To eliminate some of the risk in a fluctuating oil price the Group decided by 2014 to start purchasing put options.

Credit and counterparty riskCredit and counterparty risk is the risk that a counterparty in a financial transaction will be unable to discharge its obligations, which in turn will have a negative effect on the Group’s earnings. The Group’s commercial credit risk is limited, as there is no significant customer concentration and the counterparties are reputable and transparent multi-national companies. Financial credit risk is mitigated by only accepting counterparties with a high credit rating and through diversification. The Group did not have any past due trade receivables on 31 December. No provision for impairment has been made, as the carrying amount is estimated to be the same as the fair value. Funding and liquidity riskFunding and liquidity risk is the risk that costs will rise and funding options will be insufficient when loans are renewed or applied for, and the risk that payment obligations will not be met due to insufficient liquidity. The Group is working continually with financing and liquidity as the business often has major investments and in addition has an oil price risk, see above. Financial liabilities and trade payables are short-term and due within 30 days, and their fair value is assumed to be a reasonable fair value estimation.

InsuranceInsurance is considered to be a premature financing of future risks. The Group has an insurance coverage that is in line with industry practice and mainly covers production facilities and liability exposure in connection with exploration and exploitation of oil and gas. The Group’s insurance coverage and its strong financial position mean that it is considered able to manage minor risks as well as risks of major disasters.

Capital managementCapital is defined as total equity. The equity requirement for an oil company is substantial and is related to the large volume of investment and the risk inherent in the different exploration projects carried out during the year. It is the Board’s judgement that the equity of the Group is sufficient for the scope of its activities. There were no changes to the Group’s capital management during the year.  Neither the Parent Company nor its subsidiaries are subject to external capital requirements.

Sensitivity analysisIn order to manage interest rate and currency risks, the Group aims to reduce the impact of short-term fluctuations on its results. In the long term, however, permanent changes in oil prices, interest rates and exchange rate will have an impact on the consolidated results. Based on volumes of crude oil sold (2.9 million barrels) in 2019, it is estimated that: - A decrease of USD 10 in the price of oil would have reduced the Group’s profit before tax by USD -8,814 thousand.- A general increase of 1 per cent in the value of the interest rate would have reduced the Group’s profit before tax by USD -192 thousand.

Measurement of fair valueThe following description is a summary of the main methods and assumptions used in determining the fair value of the financial instruments in the tables below.

Trade receivables, other receivables, cash and cash equivalents, trade payables and other liabilitiesThe nominal value, less any estimated credits to trade receivables and payables, is deemed to reflect their fair value.

Financial investmentsFinancial investments are essentially very low-yielding, very short-term investments and are reported at fair value through the profit and loss statement.

Interest-bearing liabilitiesThe Group’s interest-bearing liabilities serve the purpose of funding oil projects. They are short-term in nature and the interest rate is determined based on market rates plus risk premium. Consequently, the fair value is estimated as corresponding to the carrying amount.

Note 22 – Cont.

/ GROUP

Financial Report | Svenska Annual Report 2019 | 71

Carrying amounts of financial assets and liabilities by category, 2019

Valued at amortised

cost

Fair value through profit/loss statement

Other liabilities

Total carrying amount

Totalfair value

Financial assets carried at fair value: - 659 -- 659 659

Total - 659 - 659 659

Financial assets not carried at fair value:

Trade receivables 12,749 - - 12,749 12,749

Other receivables 715 - - 715 715

Cash and cash equivalents 34,489 - - 34,489 34,489

Other 33 - - 33 33

Total 47,986 - - 47,986 47,986

Financial liabilities not recognised at fair value

Trade payables - - 2,824 2,824 2,824

Other liabilities - - 12,324 12,324 12,324

Overlift - - - - -

Bank loans - - 52,000 52,000 52,000

Total - - 67,148 67,148 67,148

Note 22 – Cont.

Carrying amounts of financial assets and liabilities by category, 2018

Valued at amortised

cost

Fair value through profit/loss statement

Other liabilities

Total carrying amount

Totalfair value

Financial assets carried at fair value: - 13,447 - 13,447 13,447

Total - 13,447 - 13,447 13,447

Financial assets not carried at fair value: - - - - -

Trade receivables 18,619 - - 18,619 18,619

Other receivables 1,105 - - 1,105 1,105

Cash and cash equivalents 38,545 - - 38,545 38,545

Other 34 - - 34 34

Total 58,303 - - 58,303 58,303

Financial liabilities not recognised at fair value

Trade payables - - 2,035 2,035 2,035

Other liabilities - - 5,745 5,745 5,745

Overlift - - - - -

Bank loans - - 72,000 72,000 72,000

Total - - 79,780 79,780 79,780

The derivative is classified at fair value through profit and loss because it is followed up on the basis of fair value and measured regularly. The fair value of the derivative is based on quotations from the bank. The calculation is based on Black & Scholes model for an estimated option price. Similar contracts are traded in an active market, whereby the fair value, level 2 is considered to be an appropriate measurement level, according to the fair value levels applied in accordance with IFRS accounting principles.

/ GROUP

72 | Svenska Annual Report 2019 | Financial Report

Note 23 – LeasesLessee Tangible assets are classified as owned and leased assets. The right-of-use assets are mainly due to the contracts regarding the FPSO vessel in the Ivory Coast, office rents in London and Stockholm and car leases. For further information, see Note 12, Tangible Fixed Assets. Existing lease agreements do not include any covenants or other limitations except pledges in the leased asset.

2019

Tangible assets, owned 439,017

Right-of-use assets 31,228

Total 470,245

/ GROUP

Right-of-use assets

Office rent

Oil and gas assets and equipment Cars Total

Depreciation for the period -855 -1,575 -16 -2,446

Closing balance as of 31 December 2019 1,276 29,920 32 31,228

Lease liabilities 2019

Short-term 2,488

Long-term 28,957

Lease liabilities included in the Report for financial position 31,445

Amounts accounted for in the Profit/Loss Statement 2019

Depreciation of right-of-use assets -2,446

Interest expense regarding lease liabilities -2,871

Expenses for short-term and low-valued leases -12

Agreed future minimum lease payments under non-cancellable lease payments fall due as follows:

Group2018

Parent2019

Parent2018

Within one year 1,318 921 1,318

Between one and five years 4,750 430 601

Total 6,068 1,352 1,919

Amounts reported in the Statement of Cash Flow 2019

Total effect of cash disbursement from lease contracts 5,060

The amount of above cash disbursements include lease agreements such as lease liability, contingent rents, low value and short-term leases.

Non-cancellable lease payments adds up to: Group2018

Parent2019

Parent2018

Minimum lease payments 1,318 921 1,318

Contingent rent 4,750 430 601

Total 6,068 1,352 1,919

The following information is related to the above two tables and relates to the lease engagements 2018 presented in accordance with IAS 17: The Group leases office premises in the UK and Sweden and an FPSO in the Ivory Coast under operating leases. The contingent rents have been defined by contract. The lease agreement for the FPSO expires on 31 December 2021, with a renewal option.

Financial Report | Svenska Annual Report 2019 | 73

Note 24 – Investment Obligation G

At the reporting date, contracted investments not yet recognised in the financial statements were as follows: 31 Dec 2019 31 Dec 2018

Oil and gas assets 22,062 47,351

Total 22,062 47,351

Contracted investments relate to the Group’s share of tangible investments in the licences where aninvestment decision has been made or a budget has been approved in the licence.

Contingencies at 31 December 2019 comprise just one contingent liability with the Swedish pension plan (pension guarantee).

Note 25 – Pledged Assets and Contingencies Group

Pledged Assets 31 Dec 2019 31 Dec 2018

Shares in subsidiaries 221,605 175,971

Total 221,605 175,971

Contingencies 31 33

Pledged assets and contingencies Parent company SEK thousand

31 Dec 2019 31 Dec 2018

Shares in subsidiaries 3,211,783 1,756,272

Contingencies 290 299

Parent

/ GROUP

Note 23 – Cont. Additional information

Office rent The Group leases offices in Stockholm and London. The lease contract for the London office expires on 8 August, 2020. The lease contract for the Stockholm office has been negotiated and prolonged to the end of 2022. The contract will be adjusted based on index per October, 2018.

Oil and gas assets The Group leases the FPSO in the Ivory Coast. The lease contract expires at the end of 2021, with an option to extend. Cars The Group has three contracts related to vehicles. The lease periods are three years. Contracts include paragraphs regarding a right to purchase the object at the date of expiring.

Financial Report | Svenska Annual Report 2019 | 7574 | Svenska Annual Report 2019 | Financial Report

Related party transactions Group, USD thousand

Group Year

Sale of goods to related

parties

Purchase of services

from related parties

Due from related

parties on 31 December

Due to related

parties on 31 December

Accrued interest

on 31 December Contribution

Other related parties 2019 - 446 - 136 - -

Other related parties 2018 - 429 5,605 85 - 173

Related party transactions Parent company, SEK thousand

Group Year

Sale of goods to related

parties

Purchase of services

from related parties

Due from related

parties on 31 December

Due to related

parties on 31 December

Accrued interest

on 31 December Contribution

Other related parties 2019 - 4,214 - 1,270 - -

Other related parties 2018 - 3,728 50,283 736 - 1,500

Transactions with related parties are priced on commercial terms.Remuneration of key management personnel.The total remuneration of the CEO and the Board is shown in Note 6.

Note 27 – Specification of SharesPlease see Note 119 for the Parent Company.

/ GROUP

Note 26 – Related PartiesRelated party relationshipsRelated party relationships where control exists:

GroupThe Group is under the control of Moroncha Holdings Ltd. (Cyprus).

Parent Company In addition to the related party relationships described for the Group, the Parent Company has control of the subsidiary Svenska Petroleum Exploration AB and its directly and indirectly owned subsidiaries (Note 119).

Other related parties Petroswede AB and Petroswede Group are 100% controlled by companies owned by Sheikh Mohammed H. Al-Amoudi.Corral Petroleum Holdings AB is a wholly-owned subsidiary of Moroncha Holdings Ltd. (Cyprus), and owns 100% of the Preem Group.

Purchases of services from related parties relate to:Midroc Real Estate AB USD 346 (365) thousand - office lease and office maintenance services.Hackholmssund Konferens AB USD 100 (63) thousand - hotel and conference costs.Preem Finans AB USD 1 (1) thousand - fuel and transport services.

Related party claim:Petroswede AB (Parent company) USD nil (5,605) thousand - Group receivables.

Related party liability:Midroc Real Estate AB USD 136 (85) thousand - accounts payable.

Contribution:MHA foundation (Mohammed H. Al-Amoudi foundation) USD nil (173) thousand.

Financial Report | Svenska Annual Report 2019 | 75

Some of the critical accounting estimates used in applying the Group’s accounting policies are described below.

Impairment testingIn calculating the recoverable amount from oil fields when testing fixed assets for impairment, or reversal of impairment, a number of estimates and assumptions about future conditions have been made. These estimates and assumptions mainly concern the life of the fields, commercial reserves (see note 12), the choice of discount rate and the future oil price. Commercial reserves are estimated regularly in the Company’s operations. The reserves are also calculated by a third party once a year. The price of oil is defined on the basis of an estimated level of consensus among market analysts. In connection with preparing these financial statements the following price scenario has been used: 2018 and forward 70.0 USD/bbl.

Impairment testing is based on a calculation of the value in use. The discount rate applied is 10% (10%). The projected cash flows are estimated on an investment-by-investment basis. The cash flows are calculated for the life of each field. Because of the long project cycles in the industry, the life may extend to 2040 in some cases. Major changes in the underlying conditions for these assumptions and estimates during 2020 may have a material effect on the value of the assets.

Effect of changes in the basis of calculationChanges in the basis of the calculations regarding costs and commercial reserves that affect the unit-of-productioncalculations for depreciation and abandonment will have a direct effect on the Group’s results. The balance sheetmay also be affected, for example in case of impairment testing.

Note 28 – Critical Accounting Estimates

Note 29 – Additional Cash Flow Analysis Disclosures2019 2018

Adjustments for non-cash items

Depreciation and impairments 44,135 34,516

Oil tax1 -8,481 -7,700

Other provisions 1,031 69

Unrealised value put option 14,981 -14,233

Unrealised exchange differences -3,055 11,120

Lease -1,239 -

Group contribution 7,800 -

Total 55,172 23,772

Cash and cash equivalentsThe following components are included in cash and cash equivalents:

Cash and bank balances 34,489 38,545

Total 34,489 38,545

1) Oil tax is a general tax that is treated in the cash flow as an operational settlement.

Reconciliation from financing activities Reserve-Based Lending Facility

Opening balance 2018 72,000

Cashflows repayment1 -20,000

Cashflows drawdown -

Exchange differences -

Closing balance 2019 52,000

1) Volontary repayment in excess of the scheduled amortisation.

/ GROUP

76 | Svenska Annual Report 2019 | Financial Report

The following is a presentation of the Company’s contractual terms regarding interest-bearing liabilities. For more information about the Company’s exposure to interest rate risk and foreign currency risk, please refer to Note 22.

Note 30 – Long-Term Interest-Bearing Liabilities

2019 2018

Long-term interest-bearing liabilities

Long-term bank loans (Reserve-Based Lending Facility) 52,000 72,000

Long-term lease liabilities 28,957 -

Total 80,957 72,000

Terms and repayment periodsDuring 2018 a new Reserve-Based Lending (RBL) facility was signed and replaced the former RBL. The RBL facility has a total commitments of USD 120 million and is split between two international banks. The maturity of the RBL facility is five years from signing with optional extension and the purpose was to refinance the existing RBL facility, shareholder loan, fund redevelopment in the Baobab field and other corporate uses. In an RBL the available borrowing amount is based on calculation of cash flows from producing oil fields and other economic assumptions agreed with the banking syndicate at any given calculation date. The available facility amount is valid for a specific time. For this current RBL the facility amount is valid for one year from the calculation date. Primarily the intention is to use the RBL facility to finance further investments and developments of the producing asset in the Ivory Coast. The RBL facility is secured by share pledges of certain Group companies and pledges of certain bank accounts. The RBL facility is based on a floating interest rate (LIBOR) plus a margin of 6.0%. At the year-end the outstanding amount of the RBL facility was USD 52 million. The long-term lease liabilities are relates to the implementation of IFRS 16, see Note 1 for more information.(See also Note 25 for collateral and pledges).

/ GROUP

Financial Report | Svenska Annual Report 2019 | 77

Terms and repayment periods, see table below.

Maturity of financial liabilities - undiscounted cash flowsGroup

CurrencyNominal amount

0-1 year 1-5 years > 5 years

RBL USD 52,000 - 52,000 -

Lease liabilities USD 28,952 - 28,952 -

CurrencyNom.

int. rateMature

dateNominalamount

Carryingamount

Nominalamount

Carryingamount

RBL USD 7.80% 2023 52,000 52,000 72,000 72,000

Lease liabilities USD 9.30% Variable 28,952 28,952 - -

2019 2018

Note 30 – Cont.

On 17 February 2020 Svenska received a letter from CNOOC West Africa Petroleum E&P S A (CNOOC) in which CNOOC is terminating the Farm-Out Agreement regarding the Sinapa and Esperanca licences in Guinea-Bissau, signed by the parties on 14 February 2019. Svenska will thereby retain its current working interest in both licences (70.71%) and will in the meantime consider other proposals to farm-in to the licences based on previous marketing efforts.

Note 31 – Events after the end of the financial year

/ GROUP

78 | Svenska Annual Report 2019 | Financial Report

Income Statement

1 January - 31 December

Amounts in SEK thousand Note 2019 2018

Net sales 101 3,737 1,163

Other operating income 102 58,625 50,948

Total operating income 62,362 52,111

Operating expenses

Operational and exploration costs 104 -1,808 -9,226

Other external costs 106, 116 -65,718 -64,826

Employee benefits expenses 105 -101,424 -86,006

Depreciation, write-downs and abandonment costs 109 -1,292 -1,594

Other operating expenses 103 -1,026 -651

Total operating expenses -171,268 -162,303

Operating profit/loss -108,906 -110,192

Profit/loss from financial investments

Other interest and similar income 107 60,454 152,053

Other interest and similar expense 107 -20,017 -48,357

Profit/loss after financial items -68,469 -6,496

Appropriations

Group contribution, received 81,919 576,122

Group contribution, distributed - -110,526

Profit before tax 13,450 459,100

Tax 108 -623 -104,952

Profit/loss for the year 12,827 354,148

Profit for the year is consistent with comprehensive income for the year.

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 79

Balance Sheet

1 January - 31 December

Amounts in SEK thousand Note 31 Dec 2019 31 Dec 2018

ASSETS

Fixed assets

Intangible assets 110 128 327

Tangible fixed assets 111 8,724 9,304

Total fixed assets 8,852 9,631

Financial assets

Investments in Group companies 119 3,232,527 1,777,016

Financial investments 112 306 306

Total financial assets 3,232,833 1,777,322

Total non-current assets 3,241,685 1,786,953

Current assets

Trade receivables 123 - 826

Receivables, Group companies 185,368 1,865,871

Prepayments and accrued income 113 7,868 13,571

Other receivables 300 460

Tax receivables 3,082 2,714

Cash and cash equivalents 212,742 238,888

Total current assets 409,360 2,122,330

TOTAL ASSETS 3,651,045 3,909,283

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 8180 | Svenska Annual Report 2019 | Financial Report

Equity and Liabilities1 January - 31 December

Amounts in SEK thousand Note 31 Dec 2019 31 Dec 2018

Restricted equity

Share capital 50,000 50,000

Reserves 10,011 10,011

Total restricted equity 60,011 60,011

Non-restricted equity

Retained earnings 3,529,245 3,450,676

Profit/loss for the year 12,827 354,148

Total unrestricted equity 3,542,072 3,804,824

Total equity 121 3,602,083 3,864,835

Trade payables 4,444 10,698

Other liabilities 114 5,579 5,012

Liabilities, Group companies 7,467 5,022

Accruals and deferred income 115 31,472 23,716

Total current liabilities 48,962 44,448

TOTAL EQUITY AND LIABILITIES 3,651,045 3,909,283

Profit for the year is consistent with comprehensive income for the year.

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 8180 | Svenska Annual Report 2019 | Financial Report

Cash Flow Statement

1 January - 31 December

Amounts in SEK thousand Note 2019 2018

Indirect method

Operating activities

Profit/loss after financial items1 -68,469 -6,496

Adjustment for non-cash items 120 1,268 1,594

Total -67,201 -4,902

Taxes paid -991 -2,413

Cash flow from operating activities before changes in working capital -68,192 -7,315

Cash flow from changes in working capital

Decrease (+) / increase (-) in operating receivables 1,687,192 10,107

Decrease (+) / increase (-) in operating liabilities 86,434 403,243

Cash flow from operating activities 1,773,626 413,350

Investing activities

Acquisition of intangible assets 110 -127 -194

Acquisition of tangible assets 111 -363 -

Cash flow from investing activities -490 -194

Financing activities

Dividend to owner -275,579 -18,178

Proceeds from borrowing - -211,250

Shareholder contributions -1,455,512 -

Cash flow from financing activities -1,731,091 -229,428

Cash flow for the year -20,147 176,413

Cash and cash equivalents at beginning of year 238,888 62,475

Cash and cash equivalents at end of year 212,742 238,888

1) The amount includes interest received of SEK 4,854 (2,740) thousand, and interest paid of SEK 0 (9,559)thousand. Additional information is available in Note 120 for the Group Cash Flow Statement.

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 8382 | Svenska Annual Report 2019 | Financial Report

The Parent Company’s annual financial statements havebeen prepared in accordance with the Swedish Annual Accounts Act (1995:1554) and the Swedish Financial Reporting Board’s recommendation RFR 2 Accounting for Legal Entities. The Swedish Financial Reporting Board’s statements for listed companies are also applied. RFR 2 requires the Parent Company, as a legal entity, to prepare its annual financial statements in compliance with all the IFRIC interpretations adopted by the EU, to the extent possible within the framework of the Swedish Annual Accounts Act and the Swedish Pension Obligations Vesting Act, and taking into account the relationship between tax expense/income and accounting profit. The recommendation states which exceptions from and additions to IFRS shall be observed. The accounting policies for the Group, described in Note 1, have been applied consistently in the Parent Company’s financial statements with exceptions described below.

CLASSIFICATION AND PRESENTATION The Parent Company prepares an income statementand a statement of comprehensive income, while theGroup combines these two reports into a statement ofcomprehensive income. In addition, the Parent Companyuses the titles balance sheet entries and cash flowstatement for its reports, while the Group uses the termsstatement of financial position and statement of cashflows. The presentation of the income statement andbalance sheet for the Parent Company is in accordancewith the Swedish Annual Accounts Act, while theconsolidated statement of comprehensive income,statement of changes in equity and statement of cash flows are based on IAS 1 Presentation of Financial Statements and IAS 7 Statement of Cash Flows. The main differences between the consolidated financial statements and the Parent Company’s income statement and balance sheet are in the accounting for finance income and costs, and non-current assets and equity.

PENSIONS The Group applies IAS 19, employee benefits, while the Parent Company applies the simplified RFR 2. Pension obligations in the parent company are placed in a separate pension fund managed by Folksam. The fair value of the assets is greater than the present value of the obligation and in consequence to RFR 2, no assets are reported. The pension plan is closed for new entrants. There are also defined-contribution plans in the Parent Company.  For more information please see Note 18.

Note 100 – Accounting Policies, Parent Company GROUP CONTRIBUTIONS Svenska Petroleum Exploration AB applies the alternative rule in RFR 2 and recognises both received and paid Group contributions as an appropriation.

SUBSIDIARIES Investments in subsidiaries are recognised in theParent Company using the cost model. This means thattransaction costs are included in the carrying amount forholdings in subsidiaries. In the consolidated accounts,transaction costs are recognised directly in the incomestatement when they arise. Contingent consideration is measured according tothe probability that the purchase price will be paid. Anychanges to the provision or receivable will increase orreduce the cost. In the consolidated accounts, contingentconsideration is measured at fair value, with value changesrecognised in profit or loss.

GROUP INFORMATION Svenska is wholly owned by Petroswede AB, which is ultimately held by Moroncha Holdings Ltd, Cyprus, a company owned by Sheikh Mohammed Al-Amoudi.

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 83

Net sales 2019 2018

Oil licences services 3,737 1,163

Total 3,737 1,163

Note 102 – Other Operating Income 2019 2018

Other operating income, Group 58,114 49,959

Exchange gains 511 989

Total 58,625 50,948

Note 103 – Other Operating Expenses 2019 2018

Exchange losses -1,026 -651

Total -1,026 -651

Note 104 – Operational and Exploration Costs 2019 2018

Exploration and project expenses -1,808 -9,226

Total -1,808 -9,226

Note 105 – Employee Benefit Expenses

Note 101 – Allocation of Revenue

Management of certain operational and exploration costsSome costs may arise early on in the business process due to clauses in production-sharing contracts. There may, for example be royalty clauses, special agreements on payment of general taxes and agreements on carrying some of another party’s costs which by tradition in the industry are paid by deducting oil from the Group’s share of the produced oil. These costs are accounted for in the same way as other costs as they reduce the profit that would otherwise have arisen.

2019 2018

Average number of employees Employees Whereof male Employees Whereof male

Parent

Sweden 13 9 16 11

United Kingdom 12 8 11 7

Total, Group 25 17 27 18

2019 2018

Executive management, Group 8 8

Gender distribution, executive management (female representation in %)

Parent

Board 0% 0%

Other senior executives 13% 0%

Total, Group

Board 0% 0%

Other senior executives 13% 0%

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 8584 | Svenska Annual Report 2019 | Financial Report

Mr. Fredrik Öhrn, CEO of SPE AB (and Petroswede AB) received during 2019 a fixed salary of SEK 5,648 (4,803) thousand, a bonus of SEK 1,994 (1,759) thousand and other benefits of SEK 152 (125) thousand. His pension costs for the year amounted to SEK 2,189 (1,484) thousand. The CEO of SPE AB (and Petroswede AB) has a formally agreed period of notice from the Company’s side. Pension premiums amount to 30 per cent of pensionable salary with regard to retirement pension and survivors’ pension. Pensionable salary means the basic salary plus an average of the variable pay over the last three years. Other senior executives (not Board members) have a similar type of pension agreement, but at a lower percentage.

Fees paid to directors 2019 2018

Sheikh Mohammed H. Al-Amoudi - 500

Jason Milazzo 500 375

Richard Öhman 200 200

Petter Holland 200 -

Jamal Mohammed A. Ba-Amer - 200

Total 900 1,275

Note 105 – Cont.

2019 2018

Other personnel costs, pensionSenior

executivesOther

employeesSenior

executivesOther

employees

Parent

Pension costs 5,555 5,081 4,320 4,914

Group total 5,555 5,081 4,320 4,914

Other personnel costs

Parent 4,471 6,132 1,857 4,238

Group total 4,471 6,132 1,857 4,238

Subtotal 56,906 31,368 44,577 28,674

Social security contributions, total 9,007 4,142 8,019 4,736

Personnel costs, total - 101,423 - 86,006

2019 2018

Salaries and other benefitsSenior

executivesOther

employeesSenior

executivesOther

employees

Parent

Sweden 15,714 9,177 14,259 11,328

- of which bonuses to senior executives 4,682 - 3,432 -

United Kingdom 31,166 10,978 24,141 8,194

- of which bonuses to senior executives 10,175 - 7,257 -

Group total 46,880 20,155 38,400 19,522

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 85

Note 106 – Other External Costs Auditor’s fees and other remuneration 2019 2018

KPMG

Annual audit 400 548

Tax advisory services 142 133

Other services 56 76

Total 598 757

Note 107 – Finance Income and Costs2019 2018

Interest income and similar items

Exchange gains, Group 30,264 116,016

Exchange gains, other 3,267 5,334

Interest income, Group 22,069 27,963

Other interest income 4,854 2,740

Total 60,454 152,053

Interest expense and similar items

Exchange losses, Group -7,383 -28,078

Exchange losses, other -3,906 -5,518

Interest expense, Group -8,714 -5,134

Other interest expense -14 -9,626

Other financial expense - -1

Total -20,017 -48,357

Finance net 40,437 103,696

/ PARENT COMPANY

86 | Svenska Annual Report 2019 | Financial Report

Note 108 – Taxes

Specification of tax expense 2019 2018

Specification of taxes

Tax for the period -585 -460

Adjustment of tax in respect of prior years -38 -2,534

Current tax -623 -2,994

Deferred tax from temporary differences - -101,958

Deferred tax - -101,958

Total recognised tax for parent company -623 -104,952

Reconciliation of effective tax - Parent

Profit/loss before tax 13,450 459,100

Tax at Swedish-enacted tax rate 21.4% (prev year 22%) -2,878 -101,002

Non-deductible expenses -1,017 -956

Foreign taxes, United Kingdom -585 -460

Given net interest to group company 3,895 -

Tax previous years -38 -2,534

Recognised tax -623 -104,952

Effective tax 4.6% 22.9%

Deferred tax assets 31 Dec 2019 31 Dec 2018

Tax loss, loss carryforward - -

Total - -

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 87

Note 109 – Depreciation, Write-Downs and Abandonment Costs

Depreciation 2019 2018

Fixed assets -1,292 -1,594

Total -1,292 -1,594

Note 110 – Intangible Assets

Depreciation 31 Dec 2019 31 Dec 2018

Opening costs 1,730 1,730

Purchases 128 -

Closing accumulated cost 1,858 1,730

Opening depreciation -1,403 -982

Depreciation for the year -327 -421

Closing accumulated impairment -1,730 -1,403

Carrying amount at end of period 128 327

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 8988 | Svenska Annual Report 2019 | Financial Report

Note 113 – Prepayments and Accrued Income

31 Dec 2019 31 Dec 2018

Prepaid project costs - 787

Prepaid rent 3,984 3,442

Prepaid insurance costs 147 568

Prepaid consulting costs - 6,720

Other costs 3,737 2,054

Total repayments and accrued income 7,868 13,571

Note 111 – Tangible Fixed Assets

Oil and gasassets Tenant Equipment Total

Restated opening balance, 1 Jan 2018 - 8,249 16,830 25,079

Purchases - - 194 194

Closing accumulated cost, 31 Dec 2018 - 8,249 17,024 25,273

Purchases - - 363 363

Closing accumulated cost, 31 Dec 2019 - 8,249 17,387 25,636

Opening depreciation, 1 Jan 2018 - - -14,796 -14,796

Depreciation - - -1,173 -1,173

Closing accumulated depreciation, 31 Dec 2018 - - -15,969 -15,969

Depreciation for the year - -965 -965

Currency calculation differences 22 22

Closing accumulated depreciation, 31 Dec 2019 - - -16,912 -16,912

Carrying amount, 31 Dec 2018 - 8,249 1,055 9,304

Carrying amount, 31 Dec 2019 - 8,249 475 8,724

Note 112 – Other Securities Held as Non-Current Assets

31 Dec 2019 31 Dec 2018

Opening costs 306 306

Closing accumulated cost 306 306

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 89

Note 114 – Other Liabilities

31 Dec 2019 31 Dec 2018

Personnel expenses 6,168 5,367

VAT -589 -355

Total 5,579 5,012

Note 115 – Accruals and Deferred Income

31 Dec 2019 31 Dec 2018

Accrued personnel expenses 25,612 19,697

Accrued project expenses - 1,301

Other 5,860 2,718

Total 31,472 23,716

Note 116 – Operational Leasing Leases where the Company is the lessee

2019 2018

Minimum lease payments 8,684 11,188

Contingent rents 4,057 5,227

Total lease costs 12,741 16,415

Agreed future minimum lease payments under non-cancellablelease payments fall due as follows:

Within one year 9,622 14,013

Between one and five years 9,228 31,455

Total 18,850 45,468

Note 117 – Pledge Assets and Contingencies For information regarding the pledged assets and contingent liabilities, see Note 25 to the Group.

Note 118 – Related Parties Transactions For information regarding related party relationships, see Note 26 to the Group.

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 9190 | Svenska Annual Report 2019 | Financial Report

Note 119 – Investments in Group CompaniesSpecification of change in shares in subsidiaries relating to Svenska Petroleum Exploration AB 31 Dec 2019 31 Dec 2018

Carrying amounts

Opening cost value 1,897,816 1,897,816

Shareholder contributions 1,455,511 -

Closing cost value 3,353,327 1,897,816

Accumulated impairment

Opening write-down -120,800 -120,800

Closed accumulated write-down -120,800 -120,800

Closing carrying amount 3,232,527 1,777,016

The Parent Company’s holdings of shares in Group companies, 31 December 2019Indirect ownership is marked in italics. All holdings are fully owned.

Directly and indirectly ownedReg. no.

Registered office

Number of shares Equity (%)

Carrying amount

Oljeprospektering AB 556126-4671 Stockholm 50,000 100 1,893

Petroswede Insurance Company DAC 266707 Dublin, Ireland 750,000 100 18,851

Svenska Petroleum Exploration U.K. Ltd (dormant) 1191501 London, UK 3 100

SPE Nigeria AB 556594-2512 Stockholm 1,000 100 1,221,100

Svenska Nigerian Holdings Ltd 36352 Bermuda

Svenska Nigerian Investment LLC 6970 Nevis

Svenska Nigeria Exploration & Production Ltd 618208 Nigeria

Svenska Nigeria (Deepwater 1) Limited 639349 Nigeria

SPE Guinea-Bissau AB 556710-9458 Stockholm 1,000 100 393,585

Svenska Petroleum Exploration CI Holding AB 556688-3541 Stockholm 1,000 100 1,597,098

Svenska Petroleum Exploration CI AB 556665-4884 Stockholm

Svenska Petroleum Exploration CI Finance AB 556635-2935 Stockholm

Total 3,232,527

/ PARENT COMPANY

Financial Report | Svenska Annual Report 2019 | 91

Note 120 – Additional Cash Flow Analysis DisclosuresParent 2019 2018

Adjustments for non-cash items

Depreciation and impairments 1,292 1,594

Exchange rate adjustments -24 -

Total 1,268 1,594

Cash and cash equivalentsThe following components are included in cash and cash equivalents

Cash and bank balances 212,742 238,888

Total 212,742 238,888

Note 121 – Statement of Changes in Equity

Amount in SEK thousand Sharecapital

Legalreserve

Retainedearnings

Total equity

Opening equity, 1 Jan 2018 50,000 10,011 3,468,853 3,528,864

Profit for the year - - 354,148 354,148

Dividend to owner - - -18,177 -18,177

Closing equity, 31 Dec 2018 50,000 10,011 3,804,824 3,864,835

Profit for the year - - 12,827 12,827

Dividend to owner - - -275,579 -275,579

Closing equity, 31 Dec 2019 50,000 10,011 3,542,072 3,602,083

Share capital of 500,000 shares with a value of 100 SEK/per share.Profit for the year is consistent with comprehensive income for the year.

Note 122 – Events After the End of the Financial Year On 17 February 2020 Svenska received a letter from CNOOC West Africa Petroleum E&P S A (CNOOC) in which CNOOC is terminating the Farm-Out Agreement regarding the Sinapa and Esperanca licences in Guinea-Bissau, signed by the parties on 14 February 2019. Svenska will thereby retain its current working interest in both licences (70.71%) and will in the meantime consider other proposals to farm-in to the licences based on previous marketing efforts.

Note 123 – Trade receivables

Amount in SEK thousand 31 Dec 2019 31 Dec 2018

Trade receivables - 826

Trade receivables - net - 826

/ PARENT COMPANY

Audit Report | Svenska Annual Report 2019 | 9392 | Svenska Annual Report 2019 | Signed by the Board of Directors

Signed by the Board of Directors

Stockholm, 11 March 2020

Jason T. MilazzoChairman Svenska

Petroleum Exploration

Our audit report was submitted on 11 March 2020KPMG AB

Håkan Olsson ReisingAuthorised Public Accountant

Petter HollandMember of the Board

Fredrik ÖhrnPresident

Richard ÖhmanMember of the Board

Audit Report | Svenska Annual Report 2019 | 93

Audit ReportTo the general meeting of the shareholders of Svenska Petroleum Exploration AB, corp. id 556093-2583.

Report on the annual accounts and consolidated accounts

OPINIONSWe have audited the annual accounts and consolidated accounts of Svenska Petroleum Exploration AB for theyear 2019.  In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act, and present fairly, in all material respects, the financial position of the parent company as of 31 December 2019 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2019 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the statement of comprehensive income and statement of financial position for the group.

BASIS FOR OPINIONSWe conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIRECTORThe Board of Directors and the Managing Director are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and, concerning the consolidated accounts, in accordance with IFRS as adopted by the EU. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement, whether due to fraud or error.  In preparing the annual accounts and consolidated accounts The Board of Directors and the Managing Director are responsible for the assessment of the company’s and the group’s ability to continue as a going concern. They disclose, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Directors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITYOur objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts and consolidated accounts.As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit.

94 | Svenska Annual Report 2019 | Audit Report

We also:• Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director.

• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s, use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s and the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts and consolidated accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts and consolidated accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause a company and a group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the annual accounts and consolidated accounts, including the disclosures, and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions.

We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any significant deficiencies in internal control that we identified.

Report on other legal and regulatory requirements

OPINIONSIn addition to our audit of the annual accounts and consolidated accounts, we have also audited the administration of the Board of Directors and the Managing Director of Svenska Petroleum Exploration AB for the year 2019 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year.

BASIS FOR OPINIONSWe conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIRECTORThe Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s and the group’s type of operations, size and risks place on the size of the parent company’s and the group’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organization and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company’s organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner.  The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfill the company’s accounting in accordance with law and handle the management of assets in a reassuring manner.

AUDITOR’S RESPONSIBILITYOur objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of

Audit Report | Svenska Annual Report 2019 | 95

assurance whether any member of the Board of Directors or the Managing Director in any material respect:– has undertaken any action or been guilty of any omission which can give rise to liability to the company, or– in any other way has acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

Our objective concerning the audit of the proposed appropriations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit in accordance with generally accepted auditing standards in Sweden, we exercise professional judgment and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropriations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgment with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined whether the proposal is in accordance with the Companies Act.

Stockholm 11 March 2020 KPMG AB

Håkan Olsson Reising Authorised Public Accountant

Executive Management | Svenska Annual Report 2019 | 9796 | Svenska Annual Report 2019 | Board of Directors

Board of Directors

Sheikh Mohammed H. Al-AmoudiBorn 1946

Sheikh Mohammed H. Al-Amoudi is a large investor mainly in Europe, the Middle East and Africa. His business activities are conducted through a number of business groups, the Corral Group, Midroc Europe, Midroc Ethiopia and ABV Rock Group. In total his businesses have a turnover of approximately 15 billion USD and employ over 70,000 people.

Sheikh Mohammed H. Al-Amoudi is one of the largest private investors in Sweden. In addition to Svenska, Sheik Al-Amoudi owns Preem AB and Midroc AB.

Jason T. MilazzoBorn 1962

Member of the board of Svenska Petroleum Exploration since 2009. Chairman of Svenska Petroleum Exploration since 2018.

Richard ÖhmanBorn 1951

Member of the board of Svenska Petroleum Exploration and Petroswede since 1996. Chairman of Petroswede 2003-2007.

Petter HollandBorn 1956

Member of the board of Svenska Petroleum Exploration since 2018.

TheOwner

Executive Management | Svenska Annual Report 2019 | 97

Executive Management

4

1

5 6

2 3

Fredrik Öhrn Born 1962

President and CEO, Petroswede AB and Svenska Petroleum Exploration AB. Employed since 2006.

B.Sc. in Geology, Uppsala University, Sweden (1986), MBA, University of Massachusetts, Amherst (1988). Boliden Group 1988–1997, ABB Financial Consulting 1997–1999. CFO Steelscreen 1999–2001, CFO Personal Chemistry 2001–2003 and CFO Carmeda 2003–2005. CFO Svenska Petroleum Exploration AB 2006–2007, CEO Svenska Petroleum Exploration AB 2008–.

6Lars SchenningsBorn 1961

CFO and Vice President Business Support. Employed since 2008.

B.Sc. in Business Administration, Umeå University, Sweden 1988. Ernst & Whinney (now Ernst & Young) 1988–1989, NCC AB (Construction and Real Estate) 1989–2000, Veolia Transport Northern & Eastern Europe 2001–2004, DHL Express Nordic 2004–2008.

5Joel FlittonBorn 1983

Vice President, Exploration. Employed since 2010.

M.Sci. in Geology (2005) Cardiff University. 13 years of experience in upstream oil and gas industry. TGS 2007-2010, at Svenska Petroleum Exploration; Geologist 2010–2014, Senior Geologist 2014–2018, Exploration New Ventures Manager 2018-2019, Vice President Exploration Svenska Petroleum Exploration 2019–.

4

Rachel HampsteadBorn 1969

General Counsel. Adjunct member. Employed since 2015.

B.A. in Chemistry, Oxford University (1991); Diploma in Law (1993) and Legal Practice Course (1994), both at the College of Law, York. Nabarro Nathanson 1994–1997, Hess Corporation 1998–2008, Petrofac 2008–2013, Chrysaor 2013–2015.

1 3 Arlene DavittBorn 1978

Vice President, Development & Production. Employed since 2019.

M.Eng. in Chemical Engineering with French (2002) University of Manchester Institute of Science and Technology. 17 years of experience in upstream oil and gas. Total E&P 2002–2010, Nexen Petroleum UK and upstream consultant G3 Baxi 2010–2012, BG Group 2013–2014, Svenska Petroleum Exploration 2014–2018, VP Development & Production Svenska Petroleum Exploration 2019–.

2 Duncan RushworthBorn 1966

Vice President, Business Development.Employed since 2007.

B.Sc. in Geology and M.Sc. in Sedimentology, University of London. Over 30 years of experience in upstream oil and gas industry. Hardy Oil and Gas 1989–1991, LASMO 1991–1999, Waterous and Co. 1999–2001, Deloitte and Touche 2001–2006, Anadarko Energy Corporation 2006–2007.

Terms and Definitions| Svenska Annual Report 2019 | 9998 | Svenska Annual Report 2019 | Terms and Definitions

Abandon: To stop work on, or plug, non-productive well, or close down and remove facilities.

Appraisal well: Well drilled closeto a discovery well to determine the extent of the find.

Barrel: Unit for crude oil measurement (= 159 litres).

Brent: Reference oil for the North Sea.

Cap rock: An impermeable rock layer capping the oil or gas reservoir and preventing the escape of fluids.

Condensate: Hydrocarbons which are in the gaseous state under reservoir conditions and which become liquid either during passage up the borehole or at the surface due to reduced temperature and pressure.

Crude oil: Includes condensate and natural gas liquids.

Cuttings: Rock fragments or chippings brought to the surface in the drilling fluid.

Terms and Definitions

Decision Gate (DG): Decision gates are a governance structure to evaluate, authorise, and monitor projects as they pass through the project lifecycle.

Field: An area defined by one or more wells which are capable of producing hydrocarbons in commercial quantities.

FPSO: Floating production, storage and offloading vessel.

Gas injection: Injection of gas into a reservoir to maintain reservoir pressure.

Hydrocarbon: An organic hydrogen/carbon compound.

Infill well: Well drilled into previously unswept areas of a defined field.

Injection well: Used to inject gas, oil or water into the reservoir for various purposes: maintaining pressure, flushing out oil, etc.

LNG: Liquefied natural gas, means lean gas, i.e. primarily methane – converted to liquid form through refrigeration to -163°C under atmospheric pressure.

Natural gas: Comprises mainly methane, although heavier gases are also usually present.

NGL: Natural gas liquids, light hydrocarbons consisting mainly of ethane, propane and butane which are liquid under pressure at normal temperature.

Oil equivalents: See “Conversion table”.

Petroleum: A collective term for hydrocarbons, whether solid, liquid or gaseous. Gas is a light hydrocarbon and oil is a heavier hydrocarbon.

Probable reserves: The amount which geophysical and engineering data indicates to be in place or recoverable but with a greater element of risk than in “Proven”. For the purpose of this definition,

Terms and Definitions| Svenska Annual Report 2019 | 99

there is a 50% chance that the actual quantity will be more than the amount estimated as “Proven and probable” and a 50% chance it will be less.

Proven reserves: The amount which geophysical and engineering data indicates to be in place or recoverable to a high degree of certainty. For the purpose of this definition, there is a 90% chance that the actual quantity will be more than the amount estimated as “Proven” and a 10% chance it will be less.

Recovery factor: The percentage of oil or gas recoverable from a reservoir.

Reservoir: The underground formation where oil or gas has accumulated. It consists of porous rock to hold the oil or gas and a cap rock that prevents its escape.

Royalty: The cash or physical liquid/mineral paid to the ultimate owner, in most cases the host country’s government.

Seismic survey: Exploration method in which reflected shock waves, recorded by seismometers, map underground formations.

Sidetrack: A new section of wellbore drilled from an existing well.

STOOIP: Abbreviation for stock-tank original oil in place, the volume of oil in a reservoir prior to production.

Structure: A discrete area of deformed sedimentary rocks, where the resultant bed configuration is such as to form a potential trap for migrating hydrocarbons.

Tie back: To connect something such as a subsea well by flowline to a production platform.

MEASURESbbl: Barrelmbbls: Thousand barrelsmmbbls: Million barrelsmbo: Thousand barrels of oilmmbo: Million barrels of oilbopd: Barrels of oil per daymmbopd: Million barrels of oil per day

boe: Barrels of oil equivalentsmboe: Thousand barrels of oil equivalentsmmboe: Million barrels of oil equivalentsboepd: Barrels of oil equivalent per daymmcf: Million cubic feetbcf: Billion cubic feetmcm: Thousand cubic metresmmcm: Million cubic metresbcm: Billion cubic metresmmbngl: Million barrels of NGLsqm: Square metre

CONVERSION TABLE1 barrel = 159 litres (at 15 degrees Celsius)1 barrel of oil equivalent = approximately 6 thousand cubic feet gas1 barrel of oil equivalent = approximately 1.6 barrels NGL1 m³ gas = 35.3 cubic feet gas1 tonne oil = 7.49 barrels of oil

56 | Svenska Annual Review 2013 | Addresses

Head OfficeSVENSKA PETROLEUM EXPLORATION AB

Mail address:P.O. Box 27823SE-115 93 Stockholm, Sweden

Visiting address:Biblioteksgatan 29, Stockholm

Telephone: +46 8 410 545 50Telefax: +46 8 667 24 32Email: info@svenska.com

SubsidiariesSVENSKA PETROLEUM EXPLORATION AB LONDON BRANCH

Mail and visiting address:25 Park LaneLondon W1K 1RA, United Kingdom

Telephone: +44 207 647 2500Telefax: +44 207 647 2501Email: info@svenska.com

SVENSKA PETROLEUM EXPLORATION GUINEA-BISSAU AB BRANCH

Mail and visiting address:Avenida das Nacoes Unidas 7 Bissau, Guinea-Bissau

Telephone: +245 666 33 50Telefax: +245 590 68 70 Email: info@svenska.com

SPE CI ABABIDJAN BRANCH

Mail and visiting address:Abidjan, Cocody7 Boulevard Latrille25 BP 945 Abidjan 25Côte d’Ivoire

Telephone: +44 207 647 2500Telefax: +44 207 647 2501Email: info@svenska.com

/ ADDRESSES