Norwegian offshore safety regulator has carried out an audit of OKEA and its management of major accident risk
and barriers at a field on the Norwegian continental shelf (NCS) and is awaiting a response from the operator
regarding the way the identified nonconformity will be handled.

The Petroleum Safety Authority Norway (PSA) revealed on Tuesday, 23 May 2023, that it had conducted the
audit from 7 March to 13 April 2023 with the objective of assessing how OKEA ensures compliance with
regulatory requirements concerning the management of major accident risk and barriers within technical safety,
process safety and electrical engineering at the Draugen field.

In addition, the offshore safety watchdog wanted to verify during the audit that previously identified non-
conformities had been addressed in accordance with feedback. While conducting its investigation, the PSA
identified one breach of the regulations. This nonconformity concerns the follow-up of performance requirements.
The regulator also observed two factors it categorised as improvement points regarding securing valves in the
correct position and analyses at a technical level.

In line with the findings of the PSA's audit, the offshore safety watchdog has asked OKEA to report how the
nonconformity will be addressed, and provide an assessment of the improvement points observed by 8 June
2023.

Located in the southern part of the Norwegian Sea, the Draugen field in production license 093 lies at a water
depth of 250 metres. Originally awarded on 9 March 1984, the Draugen license has been extended until 9 March
2024. OKEA is the operator of the license with a 44.56 per cent working interest, while its partners are M Vest
Energy with a 7.56 per cent stake and Petoro with a 47.88 per cent interest.

Together with Equinor, OKEA is working on the electrification of the Draugen and Njord A platforms. The
company will be responsible for developing the power infrastructure from shore to Draugen and Equinor will be in
charge of the cable from Draugen to Njord and modifications and upgrades on Njord A.

This project is expected to reduce emissions by 330,000 tonnes of CO2 per year and increase value creation
from the NCS. Additionally, the project is anticipated to result in a lower cost of operations and prolong the
economic life of the field.