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BlueNord Annual Report and Accounts 2024
2024
Annual Report
and Accounts
bluenord.com
Introduction
BlueNord is providing Europe
with the energy it needs today,
tomorrow, and in the net zero future
2nd largest
Oil and gas producer in Denmark
Revenue
$702m
Net cash flow from
operating activities
$309m
EBITDA
$354m
Total liquidity
(cash and undrawn facilities)
$521m
Financial highlights
BlueNord is a strategically important European
oil and gas company, specialising in the production
and development of resources that support the
energy transition towards net zero.
While creating value for stakeholders, BlueNord
helps to deliver the energy security that millions
of people depend on in today’s changing world.
1 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Operational Highlights Contents
Strategic Report
Operational Highlights 1
Our Business at a Glance 2
Chair’s Statement 6
Chief Executive Officer’s Statement 7
Business Model 10
Our Strategy 11
Strategy in Action 12
Operational Review 18
Financial Review 21
Risk Management 24
Principal Risks and Uncertainties 25
Sustainability
Statements
Introduction to Sustainability
Statements 38
Reporting Practices 39
Sustainability Strategy 40
Environment 41
Social 57
Governance 62
Governance Report
Chair’s Introduction 66
Leadership 67
Corporate Governance Report 69
Audit Committee Report 75
Remuneration Committee Report 76
ESG Committee Report 77
Nomination Committee Report 78
Directors’ Report 79
Reporting of Payments
to Governments 83
Financial Report
Consolidated Statements 87
Consolidated Statement
of Comprehensive Income 87
Consolidated Statement
of Financial Position 88
Consolidated Statement
of Changes in Equity 89
Consolidated Statement
of Cash Flows 90
Notes 91
Statutory Accounts 119
Income Statement 119
Balance Sheet 120
Cash Flow Statement 121
Notes 122
Independent Auditor’s Report 129
Statement of Compliance 132
Alternative Performance
Measures 133
Supplementary oil and gas
information (unaudited) 134
Appendices
Appendix 1.
UN Sustainable
Development Goals 138
Appendix 2.
Environment – Climate 139
Appendix 3.
Environment – Nature 140
Appendix 4.
BlueNord Transparency
Act Report 141
Information about BlueNord 143
Strong results from well optimisation
activities which continue to mitigate
production decline in the DUC fields.
Read more on page 12
Contributing to Europe’s
energy transition, with piped
gas and investment in
the CCS value chain.
Read more on pages 6 to 8
Excellent results from drilling of the
Harald East Middle Jurassic (HEMJ)
well, extending plateau production
from Tyra II by 10+ months.
Read more on page 16
Reserves replacement of 189
percent at year end 2024.
Read more on page 18
Successful reset of capital
structure enabling distributions
to shareholders.
Read more on page 79
Restart and ramp up of Tyra II,
more than doubling production
from 2025.
Read more on page 13
2 BlueNord
1
Denmark
Germany
Netherlands
Belgium
Gorm
Dan
Halfdan
Tyra
Sweden
20.0%
36.8%
43.2%
3
2
Our Business at a Glance
BlueNord is active in
the Danish North Sea
with a 36.8 percent
non-operated working
interest in the DUC
The Danish Underground Consortium (DUC) comprises fifteen fields, three export
pipelines (owned by Ørsted) and significant infrastructure.
Oil and gas are produced from four operational hubs, and overall the DUC
accounts for nearly 90 percent of the oil and gas produced in Denmark.
The three pipelines secure exports from the hubs to the Danish mainland and
international markets.
Find out more about the DUC at bluenord.com/ourassets
DUC ownership
TotalEnergies (Operator) 43.2%
BlueNord (Partner) 36.8%
Nordsøfonden (Partner) 20.0%
1
Oil pipeline to Fredericia
2
Gas pipeline to Nybro
3
Gas pipeline to Den Helder
Gas cross-border points
Assets
3 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
193.7
176.4
185.6
Year End
2024
2P Reserves
Year End
2023
Reserves
Additions
2024
Exported
Production
2024
17.3
9.2
2C 13%
2P 87%
Gas 43%
Oil 57%
The DUC represents around 90 percent of Danish oil and gas production,
with a low decline rate on base production and significant near-term growth.
Net production mboepd
2P development from YE23 to YE24, mmboe net
Peak production
rate >50
25.0
24.9
26.7
26.8
2025 2024 202320222021
Actuals Estimates
Decrease Increase Total
Proven and probable (2P) reserves, net
(mboepd)
194
2024 production rate, net (mboepd)
25
2025 peak production rate, net
(mboepd)
>50
Proven and probable (2P) reserves and best estimate of contingent (2C) resources,
net (mmboe)
221
2024 reserves
replacement
189%
2021-24 annual decline (excl. Tyra)
<4%
2023-25 growth
>100%
4 BlueNord
We focus on reducing flaring on
producing facilities. With Tyra
onstream, the hub’s emissions
will reduce by 30 percent
compared to old facilities.”
5 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Chair’s Statement 6
Chief Executive Officer’s Statement 7
Business Model 10
Our Strategy 11
Strategy in Action 12
Operational Review 18
Financial Review 21
Risk Management 24
Principle Risks and Uncertainties 25
Strategic
Report
01
Near term developments include
both infill drilling and projects
to maximise reservoir potential.
Read more on page 15
The successful restart of the
Tyra II signifies a new era of high
production potential.
Read more on page 13
BlueNord
6
Dear Shareholders and Stakeholders
This is my first statement as Chairman of
BlueNord and I would like to reflect on what
has been achieved by the Company so far,
and where BlueNord is heading in the next
few years. Without doubt, BlueNord has
come a long way in only a few years, and is
today well-placed to continue to deliver for
our shareholders and stakeholders.
Over the last year much of the hard work
from the previous six years, since the
Company acquired its interest in the Danish
Underground Consortium (DUC) assets,
has come together. This is testament to the
strategy put in place and the unwavering
commitment of the team to delivering results.
When BlueNord acquired its 36.8 percent
interest in the DUC in 2019 the challenge
was enormous. Replacing the Tyra facilities
represented the largest project ever
undertaken on the Danish continental shelf.
Delivering that has been no easy task, with
inevitable pitfalls along the way, requiring
careful management throughout.
The company and our partners in the
DUC, have successfully navigated these
challenges, BlueNord is in a strikingly
different position today. The production
capacity of oil and gas has more than
doubled over the last 12 months and a step
change in cashflow is expected in 2025. This
position is now enabling the Company to
reward shareholders for their patience and
confidence in our work. It is also enabling
BlueNord to play a meaningful role in
delivering energy security and in supporting
the energy transition in Denmark and Europe
with a reliable, low-cost and low emission,
local source of piped gas. Future projects
like Ruby aim to further reduce emissions
through CCS. The pivot to gas production
through Tyra is timely. The local European
market has become increasingly reliant on
imported LNG, which is costly and carries a
much higher environmental footprint. That
position is reflected in recent pricing and gas
storage levels in Europe during the colder
winter months.
The Company is well-placed to continue
to deliver, with a strong forward production
profile based on our current assets. That
affords us optionality to maintain and
potentially grow production, organically and/
or by M&A, while maintaining the high bar for
investment and distribution that has been
set. Delivering on the Company’s long-term
potential requires it to continue to balance its
distribution, investments, and liquidity. Key to
the company’s capital efficiency and capital
return requirement is the continued access
to financial markets, as was demonstrated
during the year by the success of our
refinancing of our RBL and bond issue.
The strategy of BlueNord going forward is
to maximise the cashflow from the existing
assets in the DUC. The strategy is not to
leave any profitable barrels behind on
the Danish sector and this aim can only
be achieved in close collaboration with
our partners in the DUC and the Danish
authorities. In addition, we would be
evaluating other growth opportunities in
the North Sea, both CCS and geographical
expansion of our production.
In addition to the milestones of Tyra
completion and the refinancing of the
company, the Board of Directors also
changed during 2024. I joined the Board as
Chairman, replacing Riulf Rustad, along with
Kristin Faerovik and João Saraiva e Silva,
who joined as Non-Executive Directors.
I would like to thank Riulf Rustad for the
tremendous contribution he has made to
the Company during his time as Chairman.
I would also like to take this opportunity
to thank shareholders and bondholders
for their commitment and continued
confidence in the BlueNord journey. Due
to the delayed restart of Tyra the start of
dividend distribution has been deferred to
2025. BlueNord will distribute 50-70 percent
of free operating cashflow quarterly to our
shareholders in 2025 and 2026. And finally
a big thank you to the BlueNord team, for
their outstanding commitment and hard
work, without which the Company would
not be where it is today. It is through their
experience and good judgement, with the
support of the Board, that BlueNord has
successfully navigated the last few years. In
the year ahead I look forward to maintaining
an open dialogue with shareholders and
bondholders and to supporting the team, as
BlueNord continues its journey of progress
and growth.
Glen Ole Rødland
Chairman
Delivering from
a position of
strength
BlueNord is well placed
to continue to deliver
on its commitments to
its shareholders and
all stakeholders.”
Glen Ole Rødland
Chairman
Chair’s Statement
7 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
2024 was characterised by a strong
performance from the Company’s
underlying asset base, continued progress
on Tyra, maximising the long-term potential
of the DUC assets, and positioning the
Company to make returns to investors.
The strength of the Company’s base assets
is reflected in the ongoing production
performance, with four consecutive quarters
at or above guidance. Through an active
programme of maintenance we have
seen consistent production over the year,
supported by high levels of efficiency.
Tyra is strategically important to the
Company, Denmark and the wider European
region. It is also in line with our purpose to
provide Europe with the energy it needs.
Tyra has been ten years in the making and,
while there has been some unavoidable
delays, the value of the project remains
evident.
With the Tyra completion test soon to be
fulfilled, the Company will shortly make its
first distribution to shareholders of $215
million for 2024. During 2024 work was
undertaken to reset the Company’s capital
structure to support the planned distribution
policy.
Production and operations
Base assets
The Company delivered a consistent
production performance through the
year, with low levels of natural decline due
to an active and ongoing programme of
well maintenance and infill drilling. Since
2021, the producing hubs in the DUC have
experienced an annual decline below
4 percent on average, a testament to the
quality of the assets and the importance
of continuous investment.
2024 saw an average daily production net
to the Company of 25.0 mboepd, in line with
guidance. Production was supported by
20 completed optimisation interventions
on Halfdan, the success of the Skjold
gas acceleration pilot, which added to
production from August, and the success of
the Halfdan Tor NE infill well, which came into
production at the end of March at 3mboepd.
The Company also benefitted from Tyra
production in November and December.
This peaked at 11mboepd in November,
before weather conditions impacted access
to the satellite fields. Work to optimise the
offshore systems and ramp up continued,
with net production at the end of the year
reaching 15mboepd.
Following the successful drilling of the
Harald East Middle Jurassic (HEMJ) well
it was put on production in December.
Preliminary results from the well were
positive and above the pre-drill P50
estimate, with 48 metres of good quality
sandstone encountered. The potential of this
well is expected to significantly extend the
plateau production period for the Tyra hub.
On Halfdan the well optimisation programme
continued into the first quarter of 2025 as
planned. Two workovers were completed on
Halfdan to protect production of 0.7mboed
from two wells at risk.
Production in 2025 (and beyond) will also
benefit from the planned installation of gas
lift on Halfdan North East in the second
half of the year. The gas lift will extend the
production from the Halfdan HCA wells
and hence extend the life of the Halfdan C
platform. (Gas lift involves injecting gas into a
producing well to help lift liquids from the well
and support ongoing production rates that
otherwise would be constrained.)
Tyra II
The reinstatement of Tyra will more than
double the Company’s production to over
50mboepd. It will reduce opex to around
USD 13/boe and emissions per barrel by
around 30 percent. This supports a step
change in our financial position, enabling
distributions and the optimisation of our
capital structure.
Gas produced from Tyra will add to energy
security for Denmark and Europe, turning
Denmark into a net exporter of gas, and
support the process of energy transition.
Tyra provides a source of locally-produced
gas that is cheaper and delivers a much
lower environmental footprint than
alternatives such as liquefied natural
gas (LNG).
Looking
ahead with
confidence
This year has been another
demonstration of our strong
underlying fundamentals,
with 2025 set to see us
deliver against our ambitious
objectives and start
distributions”
Euan Shirlaw
Chief Executive Officer
Chief Executive Officer’s Statement
8 BlueNord
The end of the year saw the ramp up of
production from Tyra, as expected, reaching
full technical capacity on 10 November. The
year end exit rate for Tyra production was
15mboepd, with plateau production expected
to be reached early in Q2 2025.
Although some delays have been encountered
in reaching plateau production, they in no
way diminish the overall value of the project
for the Company, its shareholders and
stakeholders. In a project of this scale such
challenges are to be expected and should
be viewed in the broader context of the
project’s long-term value.
First gas was successfully achieved in Q1 2024
from Dan, with first export of Tyra gas from
Harald in April. During ramp up technical
problems were encountered with the
transformers for the intermediate pressure
(IP) and low pressure (LP) compressors. The
transformers were duly repaired and technical
capacity was subsequently achieved.
Commissioning and hook up activities, alongside
the repair of the transformers, progressed
smoothly, enabling an accelerated production
ramp up after reaching technical capacity. This
included the unplugging of wells from Tyra West
and East and the reinstatement of Tyra satellites,
including Tyra South-East, Roar and Valdemar.
Maximising the value of the
Company’s assets
In order to maximise the long-term value of our
assets, the Company has three developments
in the planning stage. These are Adda, Halfdan
North and Valdemar Bo South. Adda is in the
process of being renamed Tyra North, as it will
be a tie-back to the Tyra facilities.
Each of these developments offers a highly
attractive rate of return (IRR) based on a relatively
low unit technical cost (opex and capex) of less
than USD 20/boe.
Tyra North and Valdemar Bo South are gas
weighted, while Halfdan North is oil weighted.
There are potential synergies to be gained
between Tyra North and Halfdan North. These
developments will add to daily production, and
backfill the Tyra hub’s processing capacity. Final
investment decisions on the three developments
are expected between 2025 and 2027.
By combining these developments with base
production, optimisation, in-plan and out-of-plan
projects, BlueNord has a clear path to maintaining
a net production profile of between +40mboed
and +55mboed between 2025 and 2030.
At these levels of production, from a portfolio
of assets offering highly attractive returns and
benefitting from the unique tax structure of the
DUC region, the Company is well-positioned to
remain highly cash-generative, ensuring a strong
distribution profile now and in the future.
Carbon capture and storage (CCS)
Project Ruby, which operates under the
auspices of BlueNord’s fully-owned subsidiary
CarbonCuts, was awarded an onshore licence
during the year by the Danish Energy Agency
(DEA) for the storage of up to 1.5 million tonnes of
CO
2
per annum from 2030. Award of the licence
represents a milestone for the project, offering
a material emissions reduction solution without
compromising energy security.
Reserves
BlueNord reported 2P reserves at the end
of 2024 of 194 mmboe. This increase from
186 mmboe at the end of 2023 represents
a reserves replacement ratio of 189 percent
and is the second year in a row where we
have delivered over 100 percent.
This is a fantastic result for a mature asset base
with a long production history like the DUC. It
also recognises the strong contribution from the
HEMJ well, which started production less than
three months after the initial discovery was made
and is expected to continue contributing to our
portfolio for a long time to come.
Sustainability
2024 reflects progress in the Company’s
ambition to help provide energy security to
Denmark and Europe whilst Europe navigates
the energy transition. The restart of Tyra and the
reweighting of the Company’s production to gas
With the safe restart of Tyra production in March 2024,
focus is now on bringing the Tyra West and East fields
as well as satellites Valdemar, Roar, Harald and Lulita
on production to maximise the utilisation of one of the
most advanced and efficient offshore gas installations
in the world.”
Chief Executive Officer’s Statement continued
Net cash flow from operating activities
$309m
Total liquidity (cash and undrawn facilities)
$521m
9 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
is central to that, as is BlueNord’s investment
in the Ruby CCS project.
Gas from Tyra will displace alternative sources
of energy which carry far higher CO
2
emissions.
This includes coal and the import of LNG, which
has grown rapidly post the restrictions placed on
the import of gas from Russia. Tyra-produced gas
will also reduce scope 1 emissions by 30percent,
when compared to 2018 levels, before the
production of the field was temporarily shut-in,
partly due to the improved efficiency of the
new facilities.
Following the award of the onshore exploration
licence for CO
2
storage, Project Ruby could
make a material contribution towards Denmark’s
plans to achieve net zero by 2050. This project
is expected to help offset our share of emissions
from the DUC assets, supporting the Company’s
overall sustainability ambitions. Emissions from
the DUC assets, supporting the Company’s
ambitions to minimise emissions.
Combined these projects are consistent
with maintaining energy security and reducing
emissions. They therefore contribute to
maintaining a sustainable energy future that
is fit-for-purpose, and in line with societal and
industry needs.
Financials
Revenue remained strong and consistent
throughout the year. This was driven by
consistent production performance and
favourable commodity pricing, and also
benefitted from the Company’s hedging
policy, particularly earlier in the year.
The Company actively hedges pricing risk
and added to its hedging position in 2024 with
42 percent of 2025 oil production hedged at
an average price of $73/bbl and 39 percent
of 2025 gas production at an average price of
EUR 40/MWh. The Company aims to add to its
hedging position when deemed attractive to do
so, giving us visibility over future cash flows which
support the balance sheet and distributions
to shareholders.
Opex also remained consistent for most
of the year at around USD 32 per barrel,
dropping in the last quarter to USD 23 as the
Company benefitted from the reclassification
of WROM cost to Capex and the ramp up of
Tyra production. This supported a strong and
consistent EBITDA performance across the year,
with the fourth quarter again benefitting from
reduced production expenses.
The Company’s liquidity position strengthened
as the year progressed, reflecting a stronger
cash position and benefitting from the changes
made to the Company’s capital structure. The
stronger cash position reflected changes in trade
receivables, trade payables, prepayments, and
inventories. At the end of the year BlueNord had
a total liquidity position of USD 521 million.
Changes to the capital structure better reflect the
Company’s forward credit profile and support the
Company’s distribution policy. These included a
refinancing and increase in the reserves-based
lending (RBL) facility to USD 1.4 billion, and the
issue of BNOR16, a USD 300 million bond. The
proceeds from BNOR16 were partially used to
repay BNOR14.
The issue of BNOR16 and repayment of BNOR14
allowed the Company to remove the link between
historic net profit and distributions in the capital
structure until the end of 2026, paving the way for
the Company to execute its planned distributions
policy from 2025 onwards.
The capital structure put in place reflects the
Company’s strategy to maintain a level of diversity
and its continued support from lenders. It is also
in keeping with the Company’s aim to maintain
a target net debt to EBITDA ratio of 1.5 on a
through-cycle basis.
Distributions
During the year the Company outlined its planned
distributions policy, which aims to distribute
between 50 and 70 percent of net operating cash
flow between 2024 and 2026. Thereafter the
desire is to maintain a meaningful returns profile.
The first distribution is expected to be made
shortly in Q2 2025, following the Tyra completion
test being met, as required under BNOR16. The
announced distribution for 2024 is USD 215
million representing 70 percent of net operating
cashflow during the year.
Further to this initial distribution the Company
plans to pay a quarterly distribution going
forward, commensurate with performance in
the period. The distribution policy is based on
maintaining sufficient cash in the business at a
level required for business purposes and above
the USD 100 million of liquidity stipulated under
the BNOR16 bond.
Outlook
Looking at the year ahead, the focus remains
on optimising the long-term contribution from
our operational portfolio, allowing us to maximise
near-term distributions, maintain a conservative
balance sheet and support investment in
organic growth opportunities that underpin
the long-term positive outlook for value creation.
It is an approach that will help us maintain our
overall production profile to 2030 and beyond.
I therefore look forward to the year ahead with
confidence and to keeping shareholders and
bondholders updated on our continued progress.
Euan Shirlaw
Chief Executive Officer
Chief Executive Officer’s Statement continued
10 BlueNord
Business Model
A business model with purpose
Our purpose is to provide Europe with the energy it needs – for today, tomorrow and in the net zero future to come.
What we do
Our business model is focused on maximising the long-term
contribution of our operational portfolio. This in turn enables
us to deliver on three key priorities: maximising distributions to
shareholders, maintaining a conservative balance sheet and
allocating capital to attractive organic growth opportunities.
How we create value
Active operational engagement is fundamental to the successful
implementation of the business model. This is backed by strong
technical and commercial analysis to support decision-making,
and by measured reinvestment where appropriate.
As a fully engaged DUC partner we play a significant role
in direction setting, as well as operational activity, ensuring
a well-managed portfolio that fully delivers on its potential.
• Maximise production
Ensure robust production from operational
assets
• Minimise costs
Reflecting reduction with Tyra onstream
and beyond
• Optimise commodity pricing
Secure exposure when prices attractive
• Maximise access to secured debt capacity
• Optimise capital structure to ensure consistency
with corporate objectives
• Continue to maintain a conservative balance
sheet
Maximise contribution
from asset
Maximise capital
available
Measured reinvestment
+45mboe/d
Expected production in
2030, reflecting portfolio of
accretive near-term, low-cost
development projects
Swift deleveraging
<1.5x
Net debt to EBITDA leverage
target through cycle, reflecting
strong cash generation and
profitability
Meaningful distributions
2024-26
50-70%
of net operating cashflow to be returned
2027+
meaningful returns profile maintained
Disciplined capital allocation
Near-term focus on maximising shareholder distributions
11 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Our Strategy
Our core objective is to ensure
that we maximise the long-term
value we deliver for stakeholders.
We achieve this by balancing
the demands of energy security
against the needs of the energy
transition.
We will make measured investments where it
is economically attractive to do so, which will in
turn help to ensure energy prices are affordable
for residential and business consumers.
We will seek to lower overall emissions by
producing more gas in Europe, for Europe,
which will offset carbon-intensive sources
of energy such as coal and imported LNG.
We will also invest in emissions reduction
initiatives for existing producing assets, and
in activities that support a net zero society.
Strong production performance,
driven by an active approach to asset
management, will see BlueNord
continue to enhance near-term volumes.
Delivery in 2024
• Strong production in upper end of
annual guidance.
• Mitigation of natural decline and delivery
at or above guidance throughout the year.
• Active management by the Operator,
including delivery of the well and
reservoir optimisation management
(WROM) programme.
• Progress in attractive short cycle
investments, including putting the
successful discovery of the Harald
East Middle Jurassic (HEMJ) well,
and the Halfdan Tor North-East infill
well on production.
Focus for 2025
• WROM to continue with activities
planned for 2025 and beyond.
• Focus on identifying further opportunities
for enhancement in fields that have not
been subject to WROM thus far.
• Further maturation of infill opportunities.
Tyra secures energy supplies by
producing 2.8 billion cubic metres of
gas per year for Denmark and Europe,
while reducing emissions by 30 percent
compared to old facilities.
Delivery in 2024
• Field reached maximum technical
capacity 10 November 2024.
• Ramp up of production volumes
continued through Q4, exiting 2024
at a rate of 15mboepd.
Focus for 2025
• Plateau production, supporting BlueNord
peak production expectation of over
50mboepd, and substantial free cash
flow generation.
• Maximise plateau duration based on
optimal management of production
potential and positive contribution
from HEMJ.
• Mature Tyra infill opportunities.
We will maximise the value of BlueNord,
with near-term shareholder returns and
maintaining a conservative balance
sheet prioritised, while reinvesting
where attractive.
Delivery in 2024
• First distribution announced, distribution
plan for 2025 and 2026 developed.
• Capital structure reset completed, with
enhanced USD 1.4 billion reserves based
lending facility (RBL) in place, maturity
extended, new BNOR16 bond issued,
and repayment of BNOR14.
• Progress made on project portfolio, with
maturation reflected in (> 189 percent)
2P reserves replacement for year end
2024.
Focus for 2025
• Deliver distribution profile, with 50-70
percent of net operating cash flow
distributed to shareholders from 2024
to 2026.
• Maintain conservative capital structure
throughout.
• Progress opportunities to invest where
accretive to long-term distribution profile.
• Continue to assess opportunities for
short and long-term emissions reduction.
Strategic Pillar 1
Deliver operationally
Strategic Pillar 2
Deliver Tyra II
Strategic Pillar 3
Deliver our potential
11 Annual Report and Accounts 2024
12 BlueNord
Strategic Pillar 1
Deliver operationally
Strategy in Action
Adding to 2P reserves and
production through well
and reservoir optimisation
The well and reservoir optimisation management
(WROM) campaign has been ongoing since
mid-2022, with the rig Noble Reacher being used
for well optimisation on the Dan and Halfdan
fields. A total of 50 well interventions were
conducted on the Dan field in 2022 and 2023.
In 2024, 20 optimisations were successfully
completed on Halfdan wells.
The value of WROM is clearly seen in the Halfdan
re-stimulations, in which seven gas producing
wells on the Halfdan NE field were re-stimulated
in July 2022. When conducting re-stimulations
acid is pumped into the wells to improve the
production potential. The Operator had identified
Halfdan re-stimulation candidates based on 4D
seismic surveys, which indicated that reservoir
depletion in parts of the wells was not optimal.
An immediate response from the re-stimulations
was seen, with increased production rates of
around 11mmscfpd net BlueNord.
Usually effects from re-stimulations are temporary
and decline over time, after which production
returns to the initial trend. By analogy with similar
wells, the Halfdan wells were expected to benefit
from the re-stimulation for a period of around
30 months. However, after having followed the
anticipated decline for the first 18 months, decline
deviated from the forecast and a new trend,
significantly higher than the initial trend, is now
established. This implies that the re-stimulations
have opened a previously undrained reservoir up
to production, thereby adding to reserves rather
than simply accelerating production.
WROM plays an important role in maintaining a
robust Base Assets production with an annual
decline of less than 4 percent year-on-year
since 2021.”
* CINAV: Closed In Not Available
** CT: Coiled Tubing
GLV: Gas Lift Valve
PLT: Production Logging Tool
Well & Reservoir Optimisation Management
Maximise production and reserves recovery
from current well inventory
(Flowing and CINAV* wells)
WROM intervention types:**
CT clean outs
Straddle installations
GLV optimisation
PLT and zone shifting
Perforations
Acid stimulations
Conformance treatments
13 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
13 Annual Report and Accounts 2024
The Tyra hub was successfully restarted on
10 November 2024 following a shutdown of over
five years during the Tyra redevelopment project.
Restart followed the repair of two transformers
that were both short-circuited in connection
with the start up of Tyra. The initial focus of the
restart has been to validate the facility’s fluid
handling capacity through a field-sequential
start up. Harald was the first field to come online,
followed by Tyra East, and subsequently the Tyra
SE wells. The recent exploration discovery well,
Harald East Middle Jurassic (HEMJ), followed
by Valdemar B, were brought online once stable
processing operations were confirmed.
By end December 2024 around half of the wells
were brought on production, and the Tyra hub
reached its highest production rate since the
restart in November. The remaining fields,
including Valdemar A, Roar and Tyra West, will
come online in early 2025, after which the Tyra
hub is anticipated to reach its production capacity
limits and maintain a steady production plateau
for a period, contingent upon well performance
and facility uptime.
Promising pressure data from the various fields
has indicated a significant pressure buildup
during the five-year shut in period. Combined
with production predictions from dynamic
models, BlueNord expects a period of high gas
production, securing strong production potential
throughout 2025. A key factor in achieving this will
be to identify any potential production constraints
and investigate opportunities as a result of the
reservoir dynamics taking place during the
extended shut in period.
Maximising Tyra
following a successful
redevelopment campaign
Strategic Pillar 2
Deliver Tyra II
Strategy in Action continued
14 BlueNord
Strategic Pillar 3
Deliver our potential
Strategy in Action continued
With Tyra now onstream we have the ability to
return capital. This is supported by substantial
free cash flow generation which enables the
prioritisation of near-term returns to shareholders,
while also allowing measured reinvestment and
the maintenance of a conservative balance sheet.
First distribution
First distribution for financial year 2024/25 of
USD 215 million has been proposed: which is
70 percent of net operating cash flow for 2024.
This is the first step in delivering on our business
model and stated objective to maximise returns
for shareholders.
Cash flow generation to support
all stakeholders
• Prioritise shareholder returns in the near-term.
• Measured reinvestment to maintain strong
operational portfolio.
• Preservation of strong balance sheet
through-cycle.
Shareholder returns policy for 2024-26
and beyond
• 2024 to 2026 – distribution policy of
50-70 percent of net operating cash flow.
• 2027 and beyond – maintain meaningful
returns profile as a percentage of net operating
cash flow.
• Shareholder distributions based on net
operating cash flow.
$215m
distribution proposed for 2024
Our distributions policy is set
to deliver material near-term
capital returns to shareholders
15 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
161;
72%
2P: 194
2C: 28
28;
13%
33;
15%
Strategy in Action continued
Growth through
development projects
and infill drilling
Our long-term plan covers development activities
up to 2030, including both development projects
and infill well drilling, based on the current
technical and economic landscape of the DUC.
Projects will be revised and optimised in the light
of findings from production, technical studies and
changes to macroeconomic conditions.
While subject to continuous optimisation, the
plan currently includes the drilling of four infill
wells between 2025 and 2028. Of these, two
infill wells will be drilled from Halfdan. The 4D
seismic survey data acquired in 2023 in the Dan
and Halfdan areas is key to identifying pockets
of undepleted reservoir in the Halfdan field.
Interpretation of this data is ongoing and will
guide the infill programme.
In addition, subject to FID, one infill well is planned
to be drilled into the Valdemar Upper Cretaceous
reservoir, and one infill well into the Dan B block.
Following delivery of these infill wells, three
further development projects will be executed:
seven wells on Tyra North (previously named
Adda), nine Halfdan North wells, and five wells on
Valdemar Bo South.
We are also, subject to FID, working to mature
additional infill wells in the Tyra area. Work is
ongoing to unlock significant volumes from the
Tyra field and the Tyra satellite fields to fill the new
modern facilities at Tyra for longer.
Strategic Pillar 3 continued
Deliver our potential
Reserves and Resources Split
(mmboe, net BN)
2P Developed Reserves
2P Approved+Justified Reserves
2C Near-Term Contingent Resources
16 BlueNord
Strategy in Action continued
Strategic Pillar 3 continued
Deliver our potential
Unlocking the potential
of the Middle Jurassic
Production was initiated from the Harald East
Middle Jurassic (HEMJ-1X) exploration well
on 6 December 2024 after successful drilling
and completion in the second half of 2024.
The prospect was designed as a one-well
development, drilled from the existing Harald
platform and processed through the Tyra
facilities. It was handed over to production
just prior to the commencement of the Tyra
redevelopment production start up.
A thorough pre-well engineering study was
performed outlining the use of particular drilling
technologies, notably managed pressure drilling
and advanced mud systems. These were both
required to ensure a safe drilling window through
an overlying depleted chalk reservoir, enabling
the final targeted sandstone reservoirs within the
Lulu and Bryne formations to be reached.
This approach marked a first for the DUC.
The well’s hydrocarbon column and associated
reservoir properties exceeded pre-drill
expectations. Correlation of well data and
sedimentological analysis confirmed the
connectivity within the sands, further validating the
reserve estimates. The discovery not only added
substantial 2P reserves to the BlueNord portfolio
but will also extend and secure the Tyra production
plateau for several additional months. The initial gas
production rate surpassed 50mmscfpd.
In addition, the exploration well was notable
for its low incremental emissions footprint,
contributing to reduced GHG emissions intensity
and supporting the continued operation of the
Harald platform, thereby extending its operational
lifespan.
The HEMJ well is expected to increase gas
production from the Harald field, extend the life
of the Harald hub and contribute to the security
of energy supply in Denmark and Europe.”
17 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Strategic Pillar 3 continued
Deliver our potential
Strategy in Action continued
Looking ahead
Projects for 2025-30
Halfdan infills
The Halfdan infill wells are planned as a continuation of the Halfdan field development. Two infill wells were
planned to be drilled in the Halfdan Tor formation and were sanctioned in 2022. The first well commenced
production in April 2024. The first of two Ekofisk infill wells was sanctioned in 2024. If supported by positive
indications from the 4D seismic study further infill drilling is planned for both the Halfdan Ekofisk and
Tor formations.
HCA gas lift
The HCA gas lift project is planned for the second half of 2025 and is currently being executed. The gas lift
is required to support well production and thereby increase production potential. Project scope comprises
modifications to Halfdan B topside facilities, as well as a gas lift manifold to be installed at Halfdan C. Construction
of the main module is already complete.
Valdemar UC
infill
One upper cretaceous infill well is planned to target an undrained area in the Valdemar field. The well is planned
to use a vacant slot of the VAB wellhead platform.
Halfdan North
The Halfdan North Upper Cretaceous discovery is a northern extension of the producing Halfdan field. Halfdan
North was confirmed by the well HDN-2X and later in 2016 by the Tyra South-East, TSB-3A well. The discovery
will be tied back to the Halfdan B (HBD) processing platform with a 7-kilometre pipeline from a new wellhead
platform with nine horizontal wells, five producers and four water injectors. A field development plan was
submitted to the Danish Energy Agency (DEA) in 2020. An update to this plan will be submitted in 2025.
Tyra North
The Tyra North discovery, previously known as the Adda discovery, is located ~12 km northeast of the Tyra East
facility. Following the discovery, four successful vertical wells and one horizontal appraisal well were drilled
across the Tyra North area. Tyra North is planned to be tied back to the Tyra East platform with an 11-kilometre
pipeline from a new wellhead platform with seven horizontal wells. A field development plan was submitted
to the DEA in 2024.
Valdemar Bo
South
This discovery is a southern extension of the producing Valdemar field. Valdemar Bo South has been confirmed
by the Bo-3X and Jude-1X exploration well and further by the VBA-6E horizontal well drilled in 2012. The
discovery will be tied back to Tyra East via the Valdemar BA platform with a 2.5-kilometre pipeline from a new
wellhead platform with five horizontal wells. The field development plan submitted to DEA in 2020 is currently
under review.
18 BlueNord
Achieving full technical capacity at
Tyra II in November 2024 was a major
accomplishment, made possible by the
successful repair of the two transformers
and the installation of protective measures
in the electrical system. Furthermore, the
campaign to secure two gas export routes
was completed, allowing for the export of
gas to both Denmark and the Netherlands.
The subsequent Tyra ramp-up was
impacted by adverse weather conditions
and minor operational occurrences,
however, after Tyra II reached stable
production during the second half of
December 2024, the ramp up continued
and a 2024 exit rate of 15 mboepd, net was
achieved. Ramp-up to plateau production
will continue into early Q2 2025.
The first infill well (HBA-27B) since 2019
was stimulated and put on production
in March 2024, and the exploration well
Harald East Middle Jurassic (HEMJ) was
successfully drilled, completed and put on
production in December 2024.
The plan for long-term production potential
was set in motion by initiating the tender
process for the two development projects,
Tyra North (Adda) and Halfdan North, in
October 2024.
We can also look back on a year with a high
activity level, with the Well and Reservoir
Optimisation Management (WROM)
completing the campaign on Dan and
continuing on Halfdan. Additionally, a
continued focus on operational performance
of the base assets resulted in an impressive
average operational efficiency of 91 percent.
Another significant accomplishment was
the drilling and completion of the HEMJ
well, where the encountered hydrocarbon
column and associated reservoir properties
exceeded pre-drill expectations. This
discovery not only added 12 mmboe, net
2P reserves to the BlueNord portfolio but
is also expected to prolong the lifetime of
the Harald hub and extend the Tyra
production plateau for at least 10 months.
The HEMJ well has a low incremental
emissions footprint and contributes to
gas supply to Denmark and Europe.
BlueNord delivered base production well
within guidance while commencing delivery
of Tyra production. This was achieved with
a full focus on safe operations and Tyra II
commissioning, resulting in improved
safety for the year. Furthermore, the
Operator is performing well on integrity
KPIs, and maintenance levels are
showing improving trends.
The outlook for 2025 is extremely strong,
with BlueNord production expected to
nearly double early in the year.
Reserves
BlueNord achieved an impressive reserves
replacement ratio of 189 percent at the end
of 2024, marking the second consecutive
year it has surpassed 100 percent. This is
particularly remarkable for a mature asset
base with a long production history like
the DUC. This success is attributed to the
strong underlying performance, which
led to upward technical revisions of future
production forecasts from its base assets.
The HEMJ well, which began production
less than three months after its initial
discovery, made a significant contribution
to our portfolio. This achievement was
further supported by ongoing initiatives to
maintain high operational efficiency and
enhanced production potential through
well optimisation (WROM), workovers,
and restimulation activities. Additionally,
the maturation of the Valdemar Upper
Net cash flow from operating activities
$309m
2024 production (mboepd)
25.0
BlueNord
achieved
excellent 2024
performance
with a promising
2025 outlook.”
Miriam Jager Lykke
Chief Operating Officer
Operational Review
BlueNord achieved remarkable success in 2024, laying the
groundwork for a significant production increase in early 2025.
This achievement is attributed to several key factors, including
Tyra II reaching full technical capacity in November 2024 and
the successful delivery of two new wells.
19 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Cretaceous infill well (VUC) contributed to the
increase in reserves within the portfolio.
2024 Performance
In 2024, the base assets (Dan, Gorm and Halfdan
hubs) delivered strong production, operating
within annual guidance and exceeding quarterly
guidance in the first three quarters.
Production from the Tyra II facilities commenced
in the first quarter of 2024, marked by first gas
from Tyra received at the Danish Nybro facility on
28 March. Transformer incidents on the IP and LP
compressor impacted the planned ramp up and
production of hydrocarbons from Tyra and the
associated satellites, limiting production to only the
Harald field until November 2024. Following the
successful installation of the repaired transformers
in November, the operator announced the
availability of full technical capacity on the Tyra II
facilities in a REMIT notification on 10 November
2024. Production ramp-up then resumed. By the
end of 2024, the Tyra satellites (Tyra East, Tyra
South-East, Harald, HEMJ, and Valdemar B) were
on production, with approximately half of the Tyra
hub wells opened. The remaining wells and satellites
(Tyra West, Roar, Valdemar A, and Lulita) will be
brought on production sequentially, with plateau
production from Tyra expected in early Q2 2025.
Two recently drilled production wells were
brought on stream in 2024. The first well was
the Halfdan Tor NE infill well (HBA-27B), which
commenced production in March 2024.
Since production start, the well has had stable
production with rates within the expected range.
The second well was the Harald East Middle
Jurassic (HEMJ) exploration well. This well was
drilled in the second half of the year, and due
to positive well results, was hooked up to the
Harald facilities and began production in
early December.
The excellent production performance from the
base assets is attributed to an average annual
operating efficiency of 91 percent, in line with
BlueNord’s expectations for the year. To further
maximise production potential and minimise
natural decline, the Operator undertook several
projects and activities during the year, such as
the Gas Acceleration Pilot on Skjold.
The Gas Acceleration Pilot on the Skjold field
(SGPAP) in which water injection was gradually
reduced in part of the field to increase the gas
and oil production by shifting from water injection
to depletion drive was another highlight of the
year. The project was fully implemented in March,
and a positive production response has been
observed since May. In addition to the increased
production, a benefit of the Acceleration Pilot is
reduced fuel gas consumption as the reduced
water injection allows for one of the water
injection trains on the Gorm platform to be
closed in.
The production potential and integrity of the
individual wells is addressed in the well and
reservoir optimisation campaign (WROM) which
has been ongoing since mid-2022 by use of
the rig Noble Reacher. 50 interventions on Dan
wells were carried out in 2022 and 2023. Early
2024 the rig moved to the Halfdan reservoir
where a total of 20 well interventions have been
successfully completed during the year. In Q1
of 2025 Noble Reacher will move to Halfdan
NorthEast to install gas lift on the HCA wells
which will enable stable production for longer
from the Halfdan NE gas field, thereby increasing
the 2P reserves by 2.9 mmboe, net. The project
will make gas lift available for 9 gas wells to help
produce the liquids in the wells thereby enabling
continued steady production.
BlueNord’s 2024
achievements set a strong
foundation for 2025, with
production expected to nearly
double by early 2025. The
successful completion of
Tyra II and the HEMJ well
exceeded expectations,
ensuring a promising
outlook for BlueNord.”
Operational Review continued
2025 Outlook
In 2025, we will maintain focus on well activities
and keeping operational efficiency high, despite
production deferrals due to a higher level
of planned integrity work and the installation
of a flare recovery system on Gorm. Focus
is also on Tyra ramp-up to plateau production,
and maintaining stable production.
Miriam Jager Lykke
Chief Operating Officer
20 BlueNord
Dan Hub Gorm Hub Halfdan Hub Tyra Hub
Our assets and 2024 production
82%
Oil share of 2P
reserves
25.3
Net 2P reserves
mmboe
7.3
Net production
mboepd
89%
Operational
efficiency
97%
Oil share of 2P
reserves
10.4
Net 2P reserves
mmboe
4.7
Net production
mboepd
86%
Operational
efficiency
69%
Oil share of 2P
reserves
52.8
Net 2P reserves
mmboe
12.1
Net production
mboepd
93%
Operational
efficiency
42%
Oil share of
2P reserves
105.2
Net 2P reserves
mmboe
Reaching plateau
of 30 mboe/d
Expected Q4 2025
net production rate
mboe/d
30%
Less emissions
compared to the
previous facilities
Production performance 2024
Production performance was high in 2024,
mainly based on:
• High operating efficiency of 89percent for
the year, with several months exceeding
97percent
Production outlook 2025
To keep production high in 2025, the plan is to:
• Carry out several reactive and proactive
workovers by rig Shelf Drilling Winner
• Maintain the high operational efficiency
Production performance 2024
Production performance was high in 2024,
mainly based on:
• Start-up of Skjold gas depletion pilot
Production outlook 2025
To keep production high in 2025, the plan is to:
• Continue the Skjold gas depletion pilot
• Perform well optimisation campaign
(WROM) on the Gorm field, in which it is
expected that wells currently closed in due
to integrity issues will be re-opened
Production performance 2024
Production performance was high in 2024,
mainly based on:
• Exceptionally high operating efficiency
of 92.8percent
• Production start of Halfdan Tor NE infill well
(HBA-27B)
• Continued high gas production, as a result
of better-than-expected long-term response
of the restimulation of eight HCA wells in 2022
• Successful completion of 20 well
interventions with the rig Noble Reacher,
including conformance treatments, zone
shifting of the wells for optimisation of the
water flood efficiency and re-stimulation
of production and injection wells
Production outlook 2025
To keep production high in 2025, the plan is to:
• Install gas lift on the HCA wells
• Maintain the high operational efficiency
• Perform two pro-active workovers to protect
the integrity of production wells
Production performance 2024
Operational issues during facility start-up
dominated Tyra’s production performance
in 2024
Production outlook 2025
To deliver high production in 2025, the plan is to:
• Finalise the production ramp-up by bringing
the remaining wells on stream
• Analyse pressure build-up during shut-in
to understand more about the potential of
each reservoir
• Commence studies for identification of well
optimisation opportunities
Operational Review continued
 Read more about our assets on our website
21 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Revenues of USD 702million and EBITDA of
USD 354million for the full year, has resulted
in significant cash generation from operating
activities of USD 309million. We ended the
year with total liquidity of USD 521million,
comprising cash on balance sheet of
USD 251million and undrawn RBL capacity
of USD 270million.
Our capital structure remains robust and
strengthened, supported by our solid liquidity
position and net debt. The RBL facility has
been successfully amended, increased
to USD 1.4billion and extended to 2029,
with an enhanced maximum cash drawing
capacity of USD 1.15 billion. In mid-2024 we
strengthened our financial position further
through the placement of a new five-year
senior unsecured bond issue, BNOR16, of
USD 300million, along with full redemption
of BNOR14 bonds of USD 175million.
We also continue to maintain a hedging
policy that provides visibility over future
cash flow, adding volumes where it makes
sense to do so, thereby supporting our
balance sheet and capital structure in this
continued uncertain price environment.
Performance
The Company had revenues of
USD 702.0million in 2024 (2023:
USD 795.0million) mainly related to oil and
gas sales from the DUC fields. This decline
in revenue reflects substantially lower gas
prices (down 86.1 percent after hedging)
and reduced oil volumes (down 4.9percent).
These negative factors were partially
mitigated by increased gas volumes (up
17.7percent) as the Tyra hub restarted in late
2024, and higher oil prices (up 9.8percent
after hedging).
Production expenses decreased
to USD 274.1million in 2024 from
USD 295.9million in 2023, representing
the direct costs of oil and gas production.
On a per-barrel basis this equated
to USD 29.9/boe in 2024, down from
USD 32.5/boe in 2023.
After adjusting for insurance and inventory
changes total production expenses were
USD 310.4million in 2024, compared to
USD 340.1million in 2023. A key factor in
the 2024 costs was the capitalisation of
USD 29.8million for the well and reservoir
optimisation management (WROM)
programme which was previously expensed.
Strong
operational
performance
in a challenging
price
environment
We delivered robust financial results
in 2024 and successfully optimised
the capital structure in a year with
continued uncertainty and volatility
in the macro environment. This result
was underpinned by strong base
asset performance.”
Jacqueline Lindmark Boye
Chief Financial Officer
Financial Review
Effective oil price
$74.4
USD/bbl
Net cash flow from
operating activities
$309m
Effective gas price
€40.4
EUR/MWh
Cost/boe
$29.9
Total revenue
$702m
EBITDA
$354m
Total liquidity
$521m
22 BlueNord
Personnel expenses increased to
USD 19.7million in 2024 from USD 18.0million
in 2023. This 9.4percent rise was primarily
driven by two factors: higher social security
taxes related to share options exercised and
restructuring costs. These increases were
partially offset by lower costs related to the
share-based Long-Term Incentive (LTI)
programme, which was adjusted for employees
who left the Company. The LTI is valued and
accounted for according to IFRS. For more
information see the Remuneration Committee
Report.
Other operating expenses decreased to
USD 12.4million in 2024 from USD 14.1million in
2023, representing a 12.1percent reduction.
This decline was primarily attributable to reduced
spending on consultant and legal fees during
the year.
Operating result (EBITDA) decreased to
USD 353.9million in 2024 from USD 421.4million
in 2023, a decline of 16.0percent. This reduction
was primarily driven by lower revenues due to
significantly lower gas prices, partially offset by
reduced production expenses.
Net financial items increased to an expense of
USD 230.6million in 2024 from USD 75.2million
in 2023. The USD 155.0million increase was
primarily due to the absence of USD 78.0million in
capitalised borrowing costs (present in 2023 for
assets under construction), reduced interest rate
swap gains (USD 25.1million impact) and higher
amortised cost, including fair value adjustment
amortised cost RBL (USD 16.9million) due to
debt restructuring.
Additional factors included increased negative
fair value adjustments on the BNOR15
embedded derivative (USD 18.0million) due
to share price movements, higher accretion
expenses (USD 5.0million) following updated
asset retirement obligation estimates at year
end 2023, and a one-time BNOR14 bond loan
extinguishment impact (USD 22.3 million). These
increases were partially offset by USD 12.6million
due to change from net foreign exchange gains in
2024, compared to losses in 2023.
Income tax for the Group amounted to a
current income tax USD 5.4million offset by
an adjustment (income) related to prior years
of USD 68.1million. The prior year current
income tax is offset by a prior year deferred tax
movement (cost) of USD 68.1million. Additionally,
there is a deferred tax movement (cost) of
USD 53.2million primarily impacted by the
currency adjustment on tax losses which must
be revalued using the year end exchange rate.
This corresponds to a statutory tax rate of
64percent on result before tax on hydrocarbon
income, adjusted for investment uplift and interest
restriction as well as currency adjustment of tax
losses carried forward in DKK. Effective zero
percent tax on result before tax in Norway and UK
and effective 22percent tax on result before tax
on ordinary income in Denmark.
(Please see note 14 in the Consolidated Financial
Statements for further details relating to tax in
this period.)
The Group’s net result for the year was a loss of
USD 70.8million (2023: profit of USD 109.8million).
Financial Review continued
23 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Balance sheet
Total non-current assets decreased to
USD 2,947.5million at year end 2024, from
USD 3,031.0million year end 2023, a reduction
of USD 83.5million. This decline was primarily
driven by reduced deferred tax assets due to
currency adjustments of DKK-denominated
tax losses carried forward, reclassification
of restricted cash (TotalEnergies security for
DUC cash calls) to current assets, and lower
derivative instrument values as a part of oil
hedges outstanding shifted from asset to liability
position due to strengthening oil prices. These
decreases were partially offset by increases in
property, plant and equipment, reflecting DUC
investments, the reclassification of WROM costs
from operating expenses to capital expenditure,
and revaluation of abandonment assets.
Total non-current assets comprised property,
plant and equipment of USD 2.6billion, intangible
assets of USD 147.0million, deferred tax asset
of USD 159.8million, derivatives related to the oil
hedges of USD 4.8million and USD 61.5million
in restricted cash as security against Nini/Cecilie
abandonment costs.
Total current assets increased to USD 514.3million
at the end of 2024, from USD 381.9million at
year end 2023, representing a USD 132.4million
increase. This growth was primarily driven by
higher cash balances and the reclassification
of restricted cash (TotalEnergies security for
DUC cash calls) from non-current assets. These
increases were partially offset by reductions
in trade receivables, and derivative instrument
values as part of the oil hedges moved to a liability
position due to strengthening oil prices.
The current assets comprised cash and cash
equivalents of USD 250.6million, restricted cash
of USD 157.3 million for TotalEnergies security
for DUC cash calls, stock and oil inventory of
USD 55.8million, trade receivables of USD
27.9million mainly from oil and gas revenue, oil
and gas hedge derivatives of USD 9.5million,
prepayments of USD 9.5million primarily for
insurance, tax receivables of USD 2.2million,
and other receivables of USD 1.6 million.
Equity decreased to USD 695.6million at the end
of 2024 from USD 813.6million at year end 2023,
a reduction of USD 118.0million. This decline was
primarily driven by the negative result for the year
and negative fair value adjustments of hedges.
Interest-bearing debt rose to USD 1.4billion
by end 2024, up from USD 1.2billion in 2023.
This increase primarily resulted from a
USD 300million issuance of BNOR16 which
was partially offset by the full redemption of
BNOR14, book value USD 169.1million.
The BNOR15 convertible bond loan, valued
at USD 233.1million at end 2024, was at year
end 2024 classified as a current liability due to
its mandatory conversion requirement by end
2025. These bonds are recorded at amortised
cost, with their embedded derivatives treated
as derivative liabilities at fair value through profit
and loss.
The Company’s RBL facility has a total capacity
of USD 1.4billion, with USD 880.0million drawn
as of 31 December 2024. The maximum available
cash drawing capacity is USD 1.15billion and the
facility’s book value stood at USD 834.3million at
year end. The BNOR16 senior unsecured bond
loan had a book value of USD 303.5million. Both
the RBL facility and unsecured bond loan are
valued at amortised cost.
Asset retirement obligations were USD 1,122.1
million at end 2024, an increase from
USD 1,049.0million in 2023. This increase
primarily resulted from provision accretion during
2024 and estimate adjustments due to updated
discount rates, exchange rates and minor
modifications to cut-off years and phasing.
The obligations are distributed across several
assets: DUC assets at USD 1,057.2million, Nini/
Cecilie at USD 61.5million (secured through a
cash escrow account), Lulita at USD 1.3million,
and the Tyra F-3 pipeline at USD 2.1million.
Net cash flow from operating activities was
USD 308.5million at the end of 2024, compared
to USD 249.9million in 2023. This increase was
primarily due to reduced tax payments in 2024
and decreased operating expenditure resulting
from the WROM project being reclassified to
property, plant and equipment and thus being
treated as investing cash flow. These positive
factors were partially counterbalanced by lower
EBITDA, mainly due to reduced gas commodity
prices after hedging, and negative changes in
working capital, particularly concerning payables
and prepayments. Cash flow from operating
activities before tax decreased from USD
479.7million in 2023 to USD 383.3million in 2024.
Cash flow used in investing activities amounted
to USD 250.3million in 2024, down from
USD 347.6million in 2023. DUC investments of
USD 236.3million included Tyra redevelopment
at USD 139.6million, HEMJ well drilling at USD
36.4million, WROM capitalisation at USD
29.8million, and other projects (Gorm lifetime
extension, gas acceleration project, Tyra North
(Adda) studies, 4D seismic survey, etc.) at USD
30.2million. Additional expenditures comprised
decommissioning payments of USD 15.5million
and subsidiary acquisition inflow of USD 1.5million.
Cash flow from financing activities resulted in
an inflow of USD 25.6million at the end of 2024,
contrasting with an outflow of USD 3.9million in
2023. This positive cash inflow primarily came
from debt restructuring that generated net
proceeds of USD 137.5million, along with
USD 4.2million from new share issuance. These
inflows were partially offset by USD 117.0million
in interest expenses, fees and transaction costs
associated with external loans.
Net change in cash and cash equivalents showed
a positive cash flow of USD 83.8million in 2024,
compared with the negative cash flow of
USD 101.6million in 2023. At year end 2024
total cash and cash equivalents amounted to
USD 250.6million.
Jacqueline Lindmark Boye
Chief Financial Officer
Financial Review continued
24 BlueNord
Our internal control framework supports
the management and mitigation of risk.
This framework is designed to manage,
mitigate and communicate (rather than
eliminate) the risk of failure to achieve
strategic priorities.
Risk management and internal control
are given high priority by the Board of
Directors. The Board is responsible for
identifying principal risks, and determining
the nature and extent of the risk that
BlueNord is willing to take. The impact
of climate-related risks is also taken
into account.
The Board is also responsible for
monitoring our risk management
framework and reviewing its
effectiveness. The Audit Committee
assists the Board of Directors on an
ongoing basis in monitoring our system for
risk management and internal control.
Risk management process
BlueNord faces various risks which may
impact our business. Not all of these risks
are necessarily within our control, and
for this reason we have established a risk
management process to identify and
assess how to respond to risks.
Responses can include: acceptance,
an action plan with mitigating factors to
reduce the risk, transfer to third parties
or termination of the risk by ceasing
certain activities.
The Executive Team sets the tone and is
responsible for monitoring and managing
the most significant risks. Identified risk
owners are responsible for ensuring
that risks within their area are being
appropriately managed.
Internal control
Management is responsible for
establishing and maintaining internal
control over financial reporting. Specific
policies, standards and accounting
principles have been developed for the
annual and quarterly financial reporting of
the Group.
The Chief Executive Officer and Chief
Financial Officer supervise and oversee
internal and external reporting processes.
This includes assessing financial
reporting risks and internal controls over
financial reporting within the Group.
Consolidated external financial
statements are prepared in accordance
with International Financial Reporting
Standards (IFRS) and International
Accounting Standards (IAS) as adopted
by the EU.
Risk
management
framework
Effective risk management is
essential to the successful delivery
of our strategy. The risk management
process determines the nature and
extent of the risk to which BlueNord
is exposed, the extent to which
mitigation is required, and thus
the level of risk that is acceptable.
Risk Management
Board of Directors
The Board is responsible for the Company’s
risk framework.
Meet the Board on page 67
Strategic objectives and risk appetite set the
context at Board level
Risk assessment
Status of the risk assessment is
presented annually, reviewed with
the Board and updated as required
based on the current risk appetite and
context, both internal and external.
Risk monitoring
Risk monitoring occurs on a quarterly
basis through an Executive Team
evaluation, monitoring, and review of
the risk register and matrix, which are
presented to the Audit Committee along
with quarterly financial statements.
Risk mitigation
Risk mitigation requires an
assessment of mitigation plans and
controls based on risk appetite.
Risk mitigation plans are developed
between risk owners and with
feedback from the Executive Team,
considering the risk appetite and
context set at Board level.
Oversight
The risk assessment process includes
risk identification through review
meetings held with key personnel in
the business on a quarterly basis. This
includes an evaluation of likelihood and
impact, considering both quantitative
and qualitative factors. The collated
risks are maintained in the Company
risk register.
25 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Principal Risks and Uncertainties
The risks and uncertainties described in this section are the material
known risks and uncertainties faced by BlueNord at the time of publication.
Oil and gas production and reserves
Risk Impact Mitigation Movement
Geographical concentration
and field interdependency
Production of oil and gas is concentrated in a limited number of offshore fields in a limited geographical
area of the Danish continental shelf.
Consequently the concentration of fields and infrastructure may result in incidents or events in one
location affecting a significant part of BlueNord’s business.
Material influencing factors
• Four producing hubs that are interconnected and utilise the same infrastructure.
• The fields within one hub are interconnected and one field can depend on another to
extract hydrocarbons.
• All gas produced at the different hubs is processed and transported to shore via the Tyra hub or the
Northern Offshore Gas Transport (NOGAT) pipeline.
• The Gorm hub receives liquids from all the other hubs and sends to shore via pipeline from Gorm E.
The Operator has ongoing inspection and
maintenance plans in place to proactively
maintain assets and minimise the risk of incidents.
Where events occur, activities are adjusted to
respond to specific issues as they arise, and
isolated where possible to minimise impact.
Actual reserves may differ from
reported reserves estimates
Reported reserves and resources represent significant estimates based on several factors and
assumptions made as of the reporting date, all of which may vary considerably from actual results.
Further, oil and gas production could also vary significantly from reported reserves and resources.
Should the actual results of the Company deviate from the estimated reserves and resources, this may
have a significant impact on the value of the Group’s assets and net cash flow from operating activities.
Material influencing factors
• Assumptions on which the reserves estimates are determined include geological and engineering
estimates (which have inherent uncertainties), historical production, the assumed effects of
regulation by governmental agencies and estimates of future commodity prices and operating costs
including the cost of CO
2
. Regulation and CO
2
costs are considered climate-related risks on reserves
estimates.
• The Company is a non-operated partner in the DUC and as such has less control of future decline
mitigating investments in the producing assets that impact oil and gas production.
Reported reserves are based on independent
technical expert reports which are carried out at
least annually.
BlueNord has a subsurface team with appropriate
technical expertise that monitors and reviews
production and reserves in addition to external
reserves reporting.
This provides oversight of performance and
expectations throughout the year to enable
response and follow up on a timely basis should
concerns arise.
KEY Increasing Unchanged Decreasing
26 BlueNord
Principal Risks and Uncertainties continued
Oil and gas production and reserves continued
Risk Impact Mitigation Movement
Ongoing investment in
developments
The Company makes and expects to continue to make substantial investments in its business for the
development and production of oil and natural gas reserves.
Such projects require substantial investments to bring into production, which come with several
inherent risks.
Material influencing factors
• Development projects have inherent execution risks, including cost overruns and delays, in addition
to the impact of commodity prices on the economics of a project.
• The Company may also be unable to obtain needed capital or financing on satisfactory terms, which
could lead to a decline in its oil and gas reserves.
The Company intends to finance future investments
with net cash flow from operating activities and
borrowings under its RBL facility and other equity
and debt facilities.
The Company regularly monitors liquidity, borrowing
base and other financial ratios.
Projects are screened for technical and
non-technical risks with economics reviewed at
multiple price scenarios.
Tyra redevelopment project
The Tyra redevelopment project is, to date, the largest project carried out on the Danish continental
shelf. The project has now moved into operation and production is ramping up to plateau.
The risk of performance uncertainty once wells are unplugged continues to be monitored and
is reducing as further actual production occurs and knowledge of the reservoir performance can
be assessed.
Such risks may have an adverse effect on our financial position.
Material influencing factors
• The scope of the project includes removal of old facilities, modification of existing ones and
installation of new features; there are inherent risks with such significant projects, including risks of
cost overruns and delays.
• The project has been delayed twice to date; first in November 2020 due to the COVID-19 pandemic,
and again in August 2022 due to global supply chain challenges.
BlueNord maintains a regular dialogue with the
Operator’s key personnel on the project in addition to
a review of weekly and monthly progress reporting.
BlueNord technical experts are closely involved
with this review and have an established feedback
process with the Operator.
KEY Increasing Unchanged Decreasing
27 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Principal Risks and Uncertainties continued
Oil and gas production and reserves continued
Risk Impact Mitigation Movement
Decommissioning estimates
There are significant uncertainties and significant estimation risks relating to the cost and timing for the
decommissioning of offshore installations and infrastructure.
Deviation from such estimates may have a material adverse effect on the Company’s operational
results, tax position, cash flow, and financial condition. This includes the timing of when security may
need to be put in place.
Material influencing factors
• Within the DUC the partners are primarily liable to each other on a pro-rata basis and, secondarily,
jointly and severally liable for all decommissioning obligations.
• There is an obligation for participants to provide security for their respective share of any
decommissioning liabilities ahead of actual decommissioning based on calculations as set out
in the joint operating agreement.
• Timing of decommissioning of a hub will depend on the economic cut off of reserves and links
with the risk regarding actual reserves compared with reported estimates. A change in those
estimates can impact the timing of decommissioning and will be reflected in an update in
decommissioning estimates.
Decommissioning estimates are reviewed at least on
an annual basis including macro assumptions and
timing, and updated every five years in detail based
on technological, regulatory and any other relevant
information at the time.
The need for decommissioning security is
assessed annually.
Read more on page 113.
KEY Increasing Unchanged Decreasing
28 BlueNord
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Market risks
Risk Impact Mitigation Movement
Commodity prices
The Company’s main business is to produce and sell oil and gas, therefore future revenues, cash flow,
profitability, financing, and rate of growth depend substantially on prevailing prices of oil and gas.
Because oil and gas are globally traded the Company is unable to control or predict the prices it
receives for the oil and gas it produces.
Commodity price fluctuations could reduce the Company’s ability to refinance its outstanding credit
facilities and could result in a reduced borrowing base under credit facilities available to the Company,
including the RBL facility.
Fluctuations in commodity prices could also lead to impairment of the Company’s assets.
Material influencing factors
• While volatility and uncertainty remain in the commodity market, global supply risks have been
managed through 2024. Geopolitical risk continues to have an impact but markets have tended to
adapt to this situation over the short-term.
• Hydrocarbons produced from specific fields may also have a premium or discount in relation to
benchmark prices, such as Brent, which may vary over time.
• The majority of the natural gas produced by the Company is sold at Trading Hub Europe (THE)
prices. THE closely follows the Dutch Title Transfer Facility (TTF) price. The Company is more
exposed to additional price volatility deriving from proposed responses by the European
Commission, as seen with the proposed Market Correcting Mechanism, however, this has not
recurred in 2024.
The Company actively seeks to reduce this risk
through the establishment of hedging arrangements.
BlueNord has to date executed this policy in the
market through forward contracts.
BlueNord enters hedging contracts on both oil
and gas that mitigate the short-term impact of
price volatility.
Further detail on BlueNord hedging policy can be
found in note 2 to the Financial Statements and note
19 to the Financial Instruments.
29 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Market risks continued
Risk Impact Mitigation Movement
Foreign currency exposure
The Group is exposed to market fluctuations in foreign exchange rates. Significant fluctuations in
exchange rates between euros and Danish kroner to US dollars may materially adversely affect the
reported results.
Material influencing factors
• Revenues are in US dollars for oil and in euros for gas, while operational costs, taxes and investments
are primarily in US dollars, euros and Danish kroner. With Tyra coming onstream, delivering a more
balanced portfolio of oil to gas, this means more revenue will be euro-denominated, thus reducing
currency exposure on costs in euros and Danish kroner.
• The Company’s financing is primarily in US dollars.
The Company considers currency risk to be low.
The main financial items (held in a currency other
than the functional currency of the respective
components) are offset by positions in other
components of the Group, and/or are hedged.
Cyber security
Risk Impact Mitigation Movement
Key infrastructure,
networks or core systems are
compromised or are otherwise
rendered unavailable
A compromised network or infrastructure would seriously impair the Company’s ability to maintain
regular operations, including the ability to continue reporting, and to meet regulatory and financial
obligations, if required information were not available.
Material influencing factors
• As in 2023, ongoing global tensions continue to raise IT security risks around cyber crime and
similar threats.
• Protection and monitoring of critical infrastructure continues to be a high priority in the Danish
energy sector.
The Company has in place IT controls and
processes, including preventative security routines,
disaster recovery and business continuity plans.
The Company has enhanced its IT security systems
and protocols to protect against cyber criminality
and similar threats.
30 BlueNord
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Financial liabilities
Risk Impact Mitigation Movement
Available funding to meet the
Company’s financial liabilities
The Company has several debt instruments which expose it to interest rate risk and obligations to meet
certain covenants. The Company’s material hedging programme provides significant visibility over its
ability to meet these requirements. However, if the Company is unable to do so, then actions to rectify
this position may be required.
There can be no assurance that such actions will be available, or sufficient, to allow BlueNord to
ultimately fulfil its obligations. The availability of funding and the nature and diversity of lenders involved
could pose a third-party liquidity risk.
Material influencing factors
• Exposure to floating interest rates through the Company’s USD 1.4 billion RBL.
• Exposure to fixed interest rates through a USD 208 million convertible bond and a USD 300 million
senior unsecured note.
• Under these financing instruments the Company is subject to several covenants, including maximum
leverage relative to earnings and demonstration of a minimum level of liquidity.
The Group monitors its liquidity and covenant
coverage continuously to ensure it will be able to
meet its financial obligations as they fall due.
As of the date of this report, the Company continues
to review and optimise its capital structure.
Future capital requirements
BlueNord future capital requirements will be determined based on several factors, including production
levels, commodity prices, future expenditures that require funding, and the development of the
Company’s capital structure.
To the extent the Company’s operating cash flow is insufficient to fund the business plan at any time,
additional external capital may be required.
BlueNord currently has a strong financial base, supported by existing liquidity and hedging positions.
However, any unexpected changes that result in lower revenues or increased costs may necessitate
the raising of additional external capital.
There can be no guarantee that, if required, BlueNord would be able to access the debt or equity
markets on favourable terms, or if necessary be able to adequately restructure or refinance its debt.
BlueNord maintains a strong relationship with its
banking syndicate through continual engagement
to underpin its borrowing position and has an active
investor relations strategy to support access to the
capital markets.
31 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Financial liabilities continued
Risk Impact Mitigation Movement
Insurance risk
The Company maintains liability insurance in an amount that it considers adequate and consistent with
industry standards.
However, the nature of the risks inherent in the oil and gas industry generally, and on the Danish
continental shelf specifically, are such that liabilities could materially exceed policy limits, or not be
insured at all.
In this situation the Company could incur significant costs that could have an adverse effect on its
financial condition, operational results and cash flow.
Material influencing factors
• Due to the ongoing geopolitical situation there may be an increased risk of the Group’s assets
becoming the target of acts of war and/or sabotage, as seen with the Nord Stream pipeline in 2022.
No such events were noted during 2023 or 2024, but action may be directed towards infrastructure
in future.
• Any such acts of war and/or sabotage directed towards the Group’s assets may have a material
adverse effect on the Group’s assets and financial position. Whether an incident is classified as an
act of war or sabotage under the Group’s insurances may have consequences for the Group’s right
to claim insurance proceeds under the relevant insurances.
The Company reviews the adequacy of its insurance
coverage annually.
32 BlueNord
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Third-party risk
Risk Impact Mitigation Movement
Third-party risk
The Company does not have a majority interest in its oil and gas licences and consequently cannot
solely control such assets. The Company has operatorship and an 80 percent interest in one
exploration licence related to investigating the potential for onshore CO
2
storage in Denmark. This new
licence in 2024 has changed the profile of the company in this risk aspect as there are now more direct
engagements with suppliers, albeit on a relatively small scale for the current exploration programme.
The Company has limited control over management of the oil and gas assets. Mismanagement by the
Operator, or disagreements with the Operator as to the most appropriate course of action, may result
in significant delays, losses or increased costs.
Regarding the CO
2
storage exploration licence, the company engages with a number of selected
contractors and maintains a detailed diligence approach as well as engaging regularly with the other
joint venture partner. This venture is governed by a joint operating agreement.
Jointly-owned licences (as is the case for the Company’s licences) also result in possible joint liability
under certain terms and conditions. Other participants in licences may default on their obligations to
fund capital or other funding obligations in relation to the assets.
In such circumstances the Company may be required under the terms of the relevant operating
agreement, or otherwise, to contribute all or part of any funding shortfall. The Company may not have
the resources to meet these obligations.
The Company has consultation rights, or the
right to withhold consent, in relation to significant
operational and development matters, depending
on: the importance of the matter, the level of its
interest in the licence or to which licence the
contractual arrangements for the licence apply.
The structure of engagement with the
Operator is contractually set out in the joint
operating agreement.
33 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Politics, regulation and compliance
Risk Impact Mitigation Movement
Changes in obligations arising
from operating in markets
that are subject to a high
degree of regulatory, legislative
and political intervention
and uncertainty
Exploration and development activities in Denmark are dependent on receipt of government approvals
and permits to develop assets.
There is no assurance that future political conditions in Denmark will not result in the government
adopting new or different policies and regulations relating to exploration, development, operation,
and ownership of oil and gas, environmental protection, or labour relations.
Any of the above factors may have a material adverse effect on the Company’s business, results of
operations, cash flow and financial condition.
Material influencing factors
• Future political conditions in Denmark could result in the government adopting new or different
policies, meaning that the Company may be unable to obtain, maintain or renew required drilling
rights, licences and permits, resulting in work being halted.
• Due to the conflict in Ukraine new regulations have been imposed by the EU, United States, United
Kingdom and other governments, which affect the export and import of oil and gas to and from the
Russian market.
• Trade restrictions on the Russian market could increase the importance of oil and gas fields in
Europe, including in Denmark. Such an increase in importance could result in governments adopting
new regulations that could affect the assets and the operations of the Group.
The Company maintains a regular dialogue with
the Danish Energy Agency (DEA) and relevant
government ministries.
This ensures an up-to-date understanding is in
place, enabling us to act and respond on a timely
basis to any impact on the business.
34 BlueNord
Principal Risks and Uncertainties continued
KEY Increasing Unchanged Decreasing
Politics, regulation and compliance continued
Risk Impact Mitigation Movement
Danish taxation and regulations
All BlueNord petroleum assets are located in Denmark and the petroleum industry is subject to higher
taxation than other businesses.
There is no assurance that future political conditions in Denmark will not result in the relevant
government adopting different policies for petroleum taxation than those currently in place.
Material influencing factors
• Proposed legislation around the Solidarity Contribution was enacted in 2023 and its impact on
the Company is known and accounted for. No new exposures have been identified during 2024.
• As taxation has a major impact on the Company’s results, such amendments may significantly
impact the Group’s cash flow and financial condition.
• In 2024 a tax was adopted regarding additional CO
2
duties. This will be implemented from 2025
and its impact has been incorporated into the Company assessment of forward-looking
performance and exposures.
Dialogue is maintained with industry bodies and
the relevant government ministries to understand
proposed legislation before it is enacted, and provide
a full impact analysis.
There is a compensation agreement between
the Danish state and the DUC such that the
companies participating in the DUC are entitled
to compensation for tax increases. Under this
agreement any alterations in present legislation
to the disadvantage of DUC licensees can be
challenged for compensation.
Any compensation would be determined based
upon the impact of the changes on the DUC.
However, this cannot exceed the net advantage
deemed to have been obtained by the state.
Financial reporting risk
BlueNord has internal controls in place covering the Company’s financial reporting function.
However, any material error or omission could significantly impact the accuracy of reported financial
performance and expose the Company to a risk of regulatory or other stakeholder action.
Internal controls over financial reporting are
designed and in operation.
Reputational risks
BlueNord may be negatively affected by adverse market perception as it depends on a high level
of integrity to maintain the trust and confidence of investors, DUC participants, public authorities,
and counterparties.
Any mismanagement, fraud or failure to satisfy fiduciary or regulatory responsibilities, or negative
publicity resulting from other activities, could materially affect the Company’s reputation, as well as
its business, access to capital markets and commercial flexibility.
A clear Code of Conduct, ethics guidelines and
whistleblower procedures are all in place.
35 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Climate risk
Risk Impact Mitigation Movement
Changes to and impacts of
environmental regulations
All phases of the oil and gas industry present environmental risks and hazards and are subject to
environmental regulation pursuant to a variety of international conventions and state and municipal laws
and regulations.
Compliance with such legislation can require significant expenditures and any breach may result in the
imposition of fines and penalties, some of which may be material, in addition to loss of reputation.
Material influencing factors
• Environmental legislation provides for, amongst other things, restrictions and prohibitions on spills,
releases or emissions of various substances produced in association with oil and gas operations.
• Legislation also requires that wells and facility sites are operated, maintained, abandoned, and
reclaimed to the satisfaction of applicable regulatory authorities.
• The Company is subject to legislation in relation to the emission of carbon dioxide, methane,
nitrous oxide, and other greenhouse gases (GHGs).
• Environmental legislation is evolving in a manner expected to result in stricter standards and
enforcement, larger fines and liability, and potentially increased investments and operating costs.
• With all its assets being on the Danish continental shelf the Company is highly exposed to changes
in Danish law.
• CO
2
costs and the Danish CO
2
duty are an ongoing exposure and incorporated in the Company
future forecasts and estimates. Active management of emissions and cost of allowances is
required to manage this exposure as any increases can have an impact on the Company’s financial
performance and future outlook.
The Company maintains a regular dialogue with
the DEA and relevant government ministries.
This ensures an up-to-date understanding is in
place, enabling us to act and respond on a timely
basis to any impact on the business.
The Operator has a framework and controls
in place for managing the business within
regulatory requirements.
BlueNord maintains an overview of the requirements
and dialogue with the Operator through the
appropriate joint committees.
BlueNord has the option to and actively manages
its own CO
2
cost exposure for purchasing of
allowances to the extent possible in the market.
Principal Risks and Uncertainties continued
36 BlueNord
BlueNord maintains
a consistent focus on
sustainability, balancing
the need for energy security
with lowering emissions.”
37 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Introduction to the Sustainability Statements 38
Reporting Practices 39
Sustainability Strategy 40
Environment 41
Social 57
Governance 62
Sustainability
Statements
02
Emissions reporting
BlueNord has published its scope 3
emissions for the first time, demostrating
transparency and commitment to sustainability.
This marks a step toward continuous
assessment and improvement in reducing
its environmental impact.
Emissions reduction
With the completion of facilities at Tyra II, production
has commenced, expecting to deliver a 30 percent
reduction in scope 1 emissions compared to 2018
once the hub is ramped to plateau. In addition,
BlueNord has initiated an exploration programme
for Project Ruby, with the goal of starting CO
2
storage by 2029, using carbon captured from
third-party sites.
BlueNord 38 38
Corporate Sustainability
Reporting Amid
Regulatory Uncertainty
Following the release of the EU Omnibus dated
26 February 2025, we are currently reviewing
its implications for our Corporate Sustainability
Reporting Directive (CSRD) commitments.
The Omnibus introduced several important
revisions, including a reduced scope of CSRD
application to larger companies with significant
impact, a voluntary sustainability reporting option,
postponed implementation of certain provisions,
simplification of reporting rules, and a focus on
balancing sustainability goals with economic
competitiveness. As a result, the CSRD process
to achieve compliance next year is on hold
until the EU finalises and legislates the updated
regulatory requirements.
BlueNord remains committed to ESG
transparency and will adapt its reporting strategy
based on final regulatory interpretations.
Given the uncertainty of the Omnibus proposal,
BlueNord will continue its alignment with ESRS
guidelines rather than fully pausing CSRD
preparation during 2025. As such BlueNord
shall prioritise continual materiality assessments
based on business relevance and reporting key
ESG metrics which are readily available and
valuable for stakeholders, such as emissions.
BlueNord shall maintain flexibility in assurance
requirements until clearer guidance emerges.
BlueNord remains
committed to ESG
transparency and will
adapt its reporting
strategy based
on final regulatory
interpretations of
the CSRD.”
Introduction to the Sustainability Statements
BlueNord
Our ESG reporting timeline
2019
Noreco completes the acquisition of Shell’s upstream assets in Denmark.
2020
Noreco establishes ESG Committee to execute long-term sustainability
strategy and oversee reporting. Tyra redevelopment recycles 95 percent
of existing infrastructure.
2021
Noreco continues focus on reducing routine-flaring and
efficiency improvements.
2022
Noreco renames as BlueNord to reflect the Company’s commitment
to energy security in Europe. BlueNord conducts an ESG materiality
assessment, established TCFD-aligned reporting, created a risk register,
and started collecting monthly emissions data. Sustainability reporting
established to follow GRI and TCFD standards.
2023
BlueNord supports the IPCC’s climate science, the UNFCCC’s goals
and the Paris Agreement. The Company aligns its actions with the
UN SDGs, invests in carbon storage (CarbonCuts, targeting 1MtCO
2
pa
by 2030), and is preparing to comply with CSRD in 2025 by initiating a double
materiality assessment. Routine flaring was eliminated in DUC operations.
2024
BlueNord acquires CarbonCuts as a wholly-owned subsidiary, and
CarbonCuts is awarded the exploration licence for Project Ruby on
20 June 2024. BlueNord’s sustainability report is based upon the ESRS
reporting framework.
ESG committee responsibilities absorbed between Audit Committee, for
alignment with financial reporting compliance and assurance standards,
and the newly established Technical Committee, for integration of
emissions reduction activities within operations.
BlueNord established Corporate Governance framework to meet legal
requirements and uphold ethical standards that define BlueNord’s
business conduct.
39 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Reporting Practices
Basis of preparation
BlueNord’s 2024 Sustainability Report is
structured in line with the draft oil and gas
sector specific European Sustainability
Reporting Standards (ESRS). BlueNord has
reviewed and prioritised material topics based
on actual and potential impact on: the United
Nations Sustainable Development Goals (UN
SDGs), risks identified through the enterprise
risk management process, and impacts and
opportunities across the primary DUC value
chain. The DUC’s primary business being the
exploration and production of oil and gas
from the Danish sector of the North Sea.
The report also complies with the Norwegian
Transparency Act. It has been reviewed by
internal review committees and senior
management.
This is a consolidated report for BlueNord
ASA and its 100 percent-owned subsidiary
CarbonCuts. The reporting perimeter is aligned
with the financial consolidated statements.
This report covers BlueNord’s non-operated
working interest in the DUC, focusing on
environmental aspects. It also includes
information about our BlueNord and
CarbonCuts employees as part of
our workforce.
Additionally, the environmental impact of
CarbonCuts’ activities is incorporated into
the reporting.
This report focuses on the following material
topics: Climate Change, GHG emissions,
Biodiversity and Ecosystems, Health and Safety,
Own workforce, and our Code of Conduct.
Emissions
Emission metrics across scope 1 and 2 use
direct data from the Operator where available
along with BlueNord’s own emissions outside
of the DUC. Where primary data is not available,
generic factors in GHG emissions calculations
are used. Scope 3 emissions have been
mapped and are being reported for the first time.
Value chain
The value chain assessment focuses on
Tier 1 suppliers and customers, i.e. the direct
contractual relationship. Stakeholder mapping
and an assessment of impacts, risks and
opportunities across our value chain is planned
to be conducted in 2025, however the full extent
will be reassessed depending on the outcome
of the EU Commission’s Omnibus proposal.
Disclosure based on EU laws and ESRS
reporting framework
BlueNord’s 2024 Sustainability Report is
disclosed based on EU laws and the ESRS
reporting framework.
Corporate sustainability
reporting directive (CSRD)
In 2022, the EU Council and the European Parliament
officially approved the Corporate Sustainability
Reporting Directive (CSRD). This reporting standard
requires a double materiality approach, which
means that companies must evaluate sustainability
issues from both financial and impact materiality.
Companies under compliance must assess how
environmental and social factors influence their
financial performance, whilst evaluating how their
own operations affect the environment and society.
BlueNord has begun assessing the impacts,
risks and opportunities related to its non-operated
working interest in the DUC operations and
activities associated with the CarbonCuts Project
Ruby. BlueNord plans to engage with stakeholders,
including employees, customers, suppliers, investors,
and communities, to validate the findings and
gather additional insights.
Following the release of the EU Omnibus dated
26 February 2025, we are currently reviewing its
implications for our CSRD commitments.
EU Taxonomy and
European Green Deal
The EU Taxonomy Regulation was enacted
in Norway in late 2021 and came into force in
early 2023. The EU Taxonomy is a classification
system that defines a list of environmentally
sustainable economic activities. It is part of the
EU’s strategy to enhance sustainable investment
and implement the European Green Deal. The
EU taxonomy provides a framework for reporting
on taxonomy-aligned activities, which includes
the proportion of taxonomy-aligned activities in
turnover capex and opex, together with a plan
that offers a perspective on activities which may
achieve taxonomy alignment in the future.
The European Green Deal is a comprehensive
plan by the EU to achieve climate neutrality by
2050. Key points, amongst others, include:
• Climate Neutrality: EU aims to be
climate-neutral by 2050.
• Emissions Reduction: Reduce greenhouse
gas emissions by at least 55percent by 2030.
• Clean Energy Transition: Promote renewable
energy and increase energy efficiency.
• Circular Economy: Encourage sustainable
resource use and waste reduction.
• Biodiversity and Ecosystems: Protect and
restore biodiversity.
The Green Deal aims to transform the
EU into a modern, resource-efficient
economy while tackling climate change
and environmental degradation.
Disclosure requirements by the EU Taxonomy
regulation are to be included in the sustainability
statement as defined in the ESRS disclosure
requirements according to CSRD. Following the
release of the EU Omnibus dated 26 February
2025, we are currently reviewing its implications
for disclosure requirements. CCS activities
pursued by BlueNord may be aligned with
the EU Taxonomy, making them an important
consideration for future access to financing.
Norwegian
Transparency Act
BlueNord complies with the Norwegian
Transparency Act. In 2024, the Company
produced individual reports for each committee
(ESG, Audit, Remuneration, and Nomination),
conducted a materiality assessment, and
initiated reporting in line with the Task Force on
Climate-related Financial Disclosures (TCFD).
Additionally, BlueNord established an Enterprise
Risk Management (ERM) assessment and
corporate risk register, and requested monthly
emissions data from the Operator.
Strategic interactions to
sustainability, business
model and value chain
BlueNord integrates sustainability across its
strategy. Key elements include:
Strategic vision: Aiming to provide affordable,
sustainable and reliable energy with lower
GHG intensity than imported LNG supplies.
BlueNord 40
Strategic priorities: Four priorities explicitly
addressing sustainability:
• Operating safely and effectively.
• Reducing GHG emissions intensity.
• Investing in the CCS value chain.
• Sharing profits with shareholders and
society at large through the taxes we pay,
which can be redeployed in support of
green industries and the energy transition.
Interests and views
of stakeholders
As part of our commitment to transparent
Sustainability Reporting, we have diligently
mapped and identified our key stakeholders,
including government entities, partners, suppliers,
non-governmental organisations (NGOs),
employees, and shareholders. We recognise the
importance of addressing stakeholder interests
and views to enhance our sustainability efforts.
This year, we are in the process of arranging
interviews with these key stakeholders to gather
their insights and perspectives.
Sustainability framework
BlueNord’s strategy aligns with the United Nations
Sustainable Development Goals (SDGs) and
incorporates a comprehensive sustainability
framework. This framework covers key ESG
(environment, social responsibility, and governance)
areas such as climate change, GHG emissions,
biodiversity and ecosystems, health and safety,
and own workforce. Each ESG area addresses
specific SDGs, embedding sustainability into all
aspects of the BlueNord’s strategy.
See the UN SDG’s table in Appendix 1, page 138.
Sustainability commitments
As a responsible partner in the DUC,
BlueNord is committed along with the
Operator to:
• Ensuring people’s safety and upholding
Human Rights in our operations and those of
our suppliers.
• Reducing scope 1 and scope 2 emissions
by 40 percent from DUC assets by 2030
compared to 2015 levels, and in so doing taking
an active role in Denmark’s target to reduce its
emissions by 70 percent by 2030 compared to
1990 levels, as part of Denmark’s commitment
to the Paris Agreement.
• Helping the EU reduce emissions by at least 55
percent by 2030 compared to 1990 levels, as
part of the European Green Deal.
• Reducing methane emissions by using state-
of-the-art technology to detect leaks and
subsequently repair them.
• Being a player in the circular economy.
• Preserving biodiversity.
• Sharing the economic value we create.
We will do this by:
• Reducing DUC GHG emissions intensity by
bringing Tyra II on stream and to production
plateau.
• Investing in methane detection and reduction,
and flare reduction initiatives.
• Evaluating and executing further Carbon
Footprint Reduction (CFR) opportunities.
• Continuing to evaluate the viability of
electrifying DUC operations.
• Supporting the DUC to locally recycle obsolete
infrastructure, such as Tyra old facilities,
and plan for further recycling during future
decommissioning activities.
• Investing in the CCS value chain with
CarbonCuts.
• Conducting transparent Environmental
Impact Assessments on operated assets
Sustainability Strategy
and supporting the operator for delivery of
rigorous assessment on non-operated assets.
• Supporting the DUC operator for the
Biodiversity Action Plan execution.
• Complying with EU reporting standards and
regulatory requirements.
• Maintaining our social licence to operate by
engaging with stakeholders, including local
communities, regulatory authorities and
industry partners.
• Returning value through taxation and CO
2
duty
to the Danish government to enable further
state investment in the Energy Transition.
The impacts of which will drive:
• Secure access to EU-produced energy
with lower emissions compared to LNG
transported from overseas.
• Economic growth and job opportunities
for Denmark.
• Delivery of environmental, social and
governance (ESG) considerations into financial
decision-making for new projects sanctioning.
• Continuous improvement of the DUC
environmental footprint.
41 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Environment
Environment
BlueNord strives to create
long-term value by managing
resources responsibly and investing
in emission-reducing activities,
including the CCS value chain.
BlueNord is an important energy
supplier to the EU and recognises
that its activities have both actual and
potential environmental impacts.
In this section:
Climate Change 41
Task Force on Climate Related Financial
Disclosures (TCFD) 48
Pollution 55
Biodiversity and ecosystem 56
Circular economy 56
Climate change
Paris Agreement
BlueNord acknowledges the scientific
findings of the United Nations
Intergovernmental Panel on Climate
Change (IPCC) and supports the climate
goals set forth in the United Nations
Framework Convention on Climate Change
(UNFCCC) and the Paris Agreement,
which aim to limit global temperature
rise to 1.5°C above pre-industrial levels.
BlueNord is committed to taking an active
role in Denmark’s national goal of reducing
GHG emissions.
The DUC’s operator has set its ambition
to reduce scope 1 and 2 emissions
by 40 percent in 2030 compared to 2015
levels, which BlueNord, as partner, fully
supports. BlueNord is committed to
operating within the regulatory frameworks
of the regions where we do business. For
our non-operated oil and gas assets in
Denmark, this includes alignment with the
Danish North Sea Agreement (NSA) target
of net-zero emissions by 2050. In effect, this
means that Denmark has committed to a
complete phase-out of oil and gas production
by 2050. Existing operators will continue
producing under their current licences until
they expire. DUC licence expiry is currently
2042. The DUC’s decarbonisation pathway
will be shaped by evolving regulations, market
dynamics, and technological advancements,
ensuring compliance with the policy
landscape in which we operate. BlueNord
is aligned with this phase-out.
Recognising that hydrocarbons will remain
a part of the energy mix for the foreseeable
future, BlueNord is dedicated to playing an
active role in the energy transition. BlueNord’s
strategy focuses on producing affordable
and reliable energy for Denmark and the
wider EU, while managing climate-related
risks and opportunities. This involves
assessing and implementing operational
emissions reduction activities in partnership
with the Operator and other stakeholders.
We acknowledge that achieving the Paris
Agreement goals requires accelerated
investment and technological advancements
in clean energy, energy efficiency and low-
carbon solutions across both supply and
end-user segments.
Piped oil and gas, with lower emissions
intensity than LNG volumes imported from
overseas, supports an orderly energy
transition. By supplying hydrocarbons with
approximately one-third of the carbon
footprint of imported LNG, we can displace
higher-emissions imported hydrocarbons,
contributing to a more sustainable
energy future.
BlueNord’s investment in CarbonCuts further
demonstrates BlueNord’s commitment to
the energy transition. This initiative supports
Denmark and the EU’s ambitions for carbon
storage deployment and contributes to the
Paris Agreement’s goal of mitigating global
warming.
42 BlueNord
Carbon market and regulatory framework
EU countries have legally committed to fight
climate change and achieve climate neutrality by
2050. This goal was made into a legal obligation
in the European Climate law within the European
Green Deal by the European Commission.
The EU has set a number of intermediary targets
and tools to achieve this ambition, which impact
BlueNord’s activities. These include the EU
Emission Trading Scheme (EU ETS), the EU
Regulation on methane emissions reduction in the
energy sector, the Net Zero Industry Act (NZIA), the
NSA (Danish North Sea Agreement), the Corporate
Sustainability Reporting Directive (CSRD) and the
EU Green Taxonomy. In addition, the Danish State
has implemented additional measures, such as
the Green Tax Reform, to further accelerate
the fight against climate change.
BlueNord is continuously monitoring the evolving
regulatory landscape to ensure compliance.
GHG emissions
Greenhouse gases (GHGs) are a component
of atmospheric emissions, alongside other non-
GHG gases and pollutants. Their release into
the atmosphere occurs through processes
such as fuel combustion, flaring, venting, and
fugitive emissions.
BlueNord works to protect the environment
where possible, both in its own operations and
through the Company’s partnership with the
DUC. We work on reducing the carbon footprint
of our operations, for example, by improving
energy efficiency, reducing venting, and
eliminating routine flaring of gas.
We are committed to provide transparency on
GHG emissions across scopes 1, 2, and 3. In 2023
we initiated a double materiality assessment
of impacts, risks and opportunities in line with
European Financial Reporting Advisory Group
(EFRAG) guidelines. As a non-operating partner,
BlueNord does not directly control emissions
reduction initiatives at the assets in which it
participates. However, we engage with our
operating partners to encourage the adoption
of best practices in emissions management
and sustainability reporting. Where possible,
we advocate for alignment with EU and Danish
climate goals, particularly in areas such as
energy efficiency, flaring reduction, and
CCS opportunities.
The key framework which guides our reporting
is the TCFD (Task Force on Climate-related
Financial Disclosures, now IFRS S2).
Scope 1
BlueNord scope 1 emissions arise from its
partnership in the DUC, mostly linked to fuel
combustion for powering its offshore installations.
Flaring of natural gas occurs on all DUC hubs
to allow for safe operations during production
upsets and non-routine activities. Routine flaring
was eliminated in 2023 following the re-route
of Halfdan production.
Fugitive emissions can occur due to partial
combustion or leaks and are surveyed regularly,
notably via Leak Detection And Repair (LDAR).
Venting emissions may occur for safety reasons.
Environment continued
The commissioning
of Tyra II facilities are
forecasted to reduce
scope 1 emissions by
30 percent compared
to 2018 levels.”
43 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
A number of Carbon Footprint Reduction (CFR)
activities were added in 2024 to those performed
in previous years. To implement the Skjold Gas
Acceleration Project (SGPAP), gas exported
from Gorm was reinstated in February 2024.
The project resulted in lower flaring with GHG
emissions reduction. In 2024, another CFR
project was launched on Gorm, with completion
anticipated in 2025. The Gorm (Low Pressure)
gas ejector facilitates the recovery of LP flare
gas and is projected to reduce GHG emissions
starting in 2025.
The 2024 CFR projects also encompassed
vent purge optimisation for Gorm, Dan, and
Harald, additional suction cooler pressure
reduction on Halfdan, and the replacement of
air filters for Halfdan's power generators. These
efforts collectively achieved a total reduction of
30 kton CO
2
e in 2024.
The largest reduction was achieved with Gorm
water injection operations, where one train was
shut-in as part of the SGPAP leading to fuel
consumption savings. The project was initiated
in March 2024 and is expected to realise a
20kton CO
2
e/year reduction in emissions.
Since the project was approved for reservoir
management purposes, it is not classified as a
CFR project. However, emissions reductions
are an additional benefit that enhance its overall
value. CFR opportunities are continuously
assessed in the DUC partnership and ranked
according to complexity, impact on simultaneous
operations and carbon abatement scope and cost.
BlueNord’s share of DUC scope 1 emissions in
2024 is 0.36 MT of CO
2
equivalent, an increase
of 11.5percent compared to 2023. This increase
is driven by the Tyra hub restart but is partially
offset by CFR activities, primarily conducted
at the Gorm hub. Tyra commissioning led to a
39percent increase in methane emissions in
2024 compared to 2023, in addition to higher fuel
consumption and higher flaring as expected with
the ramp-up in production. Methane emissions
are closely monitored and reported, in line with
the new ‘EU Regulation on methane emissions
reduction in the energy sector’ that entered into
force in 2024. This includes using drones to
survey methane emissions from the installations,
with annual monitoring campaigns.
The DUC’s GHG scope 1 intensity increased
by 13percent from 2023 to 2024, up to 36.4 kg
CO
2
eq/boe as a result of increased emissions
(+11.5percent) alongside stable production
(+0.2percent).
2024 GHG scope 1 emissions intensity has
been largely impacted by commissioning
activities at the Tyra hub, which are not
representative of the GHG emissions intensity
to be expected during normal operations once
the hub production is ramped up to plateau.
Scope 2
Scope 2 emissions are linked to energy
consumption at BlueNord’s offices,
encompassing GHG emissions from both
electricity and district heating consumption.
In 2024, scope 2 emissions were less than
0.01 MT.
Scope 3
BlueNord has started assessing its scope 3
emissions across all scope 3 categories and
assessed that more than 99percent fall under
category 11 (Use of sold products). Category 9
(Downstream transportation and distribution)
and 10 (Processing of sold products) are
assumed nil as per IPIECA guidance to avoid
double counting.
Category 11 emissions, assuming that the oil
and gas sold are used as fuel, amounted to
3.53 MT CO
2
e in 2024, which is 2percent lower
than in 2023. This decrease is attributed to stable
export volumes (-0.9percent) and a higher
proportion of gas in the mix.
Environment continued
BlueNord is committed to
provide transparency on
GHG emissions across
scope 1 and 2 and has,
for the first time, begun
assessing its scope 3
emissions.”
44 BlueNord
Ospar reporting perimeter (includes drilling and logistics)
1
Topic 2023 Performance 2024 Performance
3
Change
CO
2
emissions
Total CO
2
emissions
303 kt
Total CO
2
emissions
338 kt
CH
4
emissions
Total CH
4
emissions
434 tonnes
Total CH
4
emissions
603 tonnes
nmVOC
215 tonnes 261 tonnes
NOx and SOx
emissions
NOx
1,156 tonnes
NOx
1,231 tonnes
SOx
31 tonnes
SOx
27 tonnes
Contribution
to total GHG
emissions
Fuel consumption –
Fuel Gas
75%
Fuel consumption –
Fuel Gas
74%
Fuel consumption – Diesel
14%
Fuel consumption – Diesel
14%
Flare
9%
Flare
9%
Fugitive emissions
2%
Fugitive emissions
4%
GHG intensity
(CO
2
eq/boe)
32.2 36.4
ETS reporting perimeter
2
Topic 2023 Performance 2024 Performance Change
CO
2
emissions*
Total CO
2
emissions
244 kt
Total CO
2
emissions
316 kt
EU ETS CO
2
intensity
(CO
2
/boe)
24.6 31.7
KEY: Higher Unchanged Lower
1. Numbers have been verified and submitted by the DUC operator to DEA for OSPAR reporting. Awaiting Approval from OSPAR.
2. Numbers have been submitted by the DUC operator to External Auditors for verification.
3. Numbers are net to BlueNord unless stated otherwise.
* 2023 emissions have been revised following AR23.
Environment continued
Performance status 2024: Atmospheric emissions
45 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
KEY: Higher Unchanged Lower
Performance status 2024: Discharge to sea
3
Ospar reporting perimeter
1
Topic 2023 Performance 2024 Performance Change
Discharge
to sea
Discharged produced water
6.8 mm m
3
Discharged produced water
6.7 mm m
3
Volume of oil discharged
48.0 tonnes
Volume of oil discharged
45.9 tonnes
Oil concentration in water
7.0 mg/L
Oil concentration in water
6.8 mg/L
Spills
Number of oil and diesel spills
2
15
Number of oil and diesel spills
2
14
Oil and diesel spills
0.02 tonnes
Oil and diesel spills
0.14 tonnes
Number of chemical spills
2
20
Number of chemical spills
2
23
Chemical spills
0.05 tonnes
Chemical spills
0.02 tonnes
Topic 2023 Performance 2024 Performance Change
Chemical
usage
Green chemicals
1,904 tonnes
Green chemicals
2,583 tonnes
Yellow chemicals
3,082 tonnes
Yellow chemicals
2,969 tonnes
Red chemicals
27 tonnes
Red chemicals
24 tonnes
Black chemicals
0 tonnes
Black chemicals
0 tonnes
Total chemicals
5,014 tonnes
Total chemicals
5,576 tonnes
Chemical
discharge
Green chemicals
1,119 tonnes
Green chemicals
1,761 tonnes
Yellow chemicals
1,848 tonnes
Yellow chemicals
1,728 tonnes
Red chemicals
6 tonnes
Red chemicals
4 tonnes
Black chemicals
0 tonnes
Black chemicals
0 tonnes
Total chemicals
2,973 tonnes
Total chemicals
3,494 tonnes
Environment continued
1. Numbers have been verified and submitted by the DUC operator to DEA for OSPAR reporting. Awaiting Approval from OSPAR.
2. Number of spills is 100% DUC.
3. Numbers are net to BlueNord unless stated otherwise.
46 BlueNord
Climate scenarios and management
of climate change risk
Climate change risks are continuously reviewed
as part of the Impact Risks and Opportunities
(IRO) assessment. BlueNord is in the process
of reviewing the IROs and their materiality.
The financial impact of climate change on
BlueNord’s activities are summarised in the
TCFD. Analysis of various climate scenarios from
the International Energy Agency, such as STEPS
(Stated Policies), APS (Announced Pledges) and
NZE (Net Zero Emissions by 2050), are regularly
updated by assessing the impact of oil, gas and
carbon price projections associated with each
scenario on the portfolio valuation.
Emissions reduction plan
In 2021 BlueNord initiated an inventory of its
scope 1 emissions linked to its working interest
in the DUC. BlueNord is working alongside the
DUC Operator to set out an emissions reduction
roadmap with GHG emissions reduction targets
founded upon cost-effective CFR initiatives on an
asset-by-asset basis.
BlueNord acknowledges that it has indirect
emissions related to upstream and downstream
activities. Under scope 3, Category 11 of the
GHG Protocol (Use of sold product) constitutes
the bulk of BlueNord scope 3 emissions. We
are working on expanding scope 3 emissions
reporting and to collect the necessary data.
Decarbonisation actions
Carbon capture and storage (CCS)
BlueNord has made a strategic investment
in CarbonCuts A/S, intending to establish an
onshore CO
2
storage location in Denmark and
address Denmark’s ambitions for onshore
storage of CO
2
.
CCS is a key element of our business. Under the
EU's Net-Zero Industry Act (NZIA), oil and gas
producers are required to contribute to the Union-
wide goal of achieving an annual CO₂ injection
capacity of 50 million tonnes by 2030. This
obligation is allocated based on each producer's
share of EU crude oil and natural gas production
between 1 January 2020 and 31 December 2023.
CarbonCuts plans to inject up to 1.5MT CO
2
by 2030.
CarbonCuts A/S was registered as a legal
entity in August 2022, specifically to explore the
opportunity of CO
2
storage in the Rødby area, the
Ruby Project. CarbonCuts A/S is a wholly-owned
subsidiary of the BlueNord Group, which has
funded its activities since October 2022.
The Company will contribute to the Paris
Agreement’s goal of arresting global warming,
with its core business to build, own and operate
permanent geological sites for CO
2
storage.
In June 2024 CarbonCuts achieved a major
milestone by being awarded an exploration
license for its first project in Rødby.
BlueNord has committed to an exploration
work programme and is allocating financial
and personnel resources to deliver it. At the
end of 2024, the CarbonCuts organisation
was 10 employees and scaling up.
In March 2025, CarbonCuts has taken the
strategic decision to apply for a second licence
area located in near-shore Denmark to assess
the potential for CO
2
storage. The outcome of this
application is expected in the third quarter 2025.
CarbonCuts’ first project in the Rødby area
has received local support and has attracted
national and international interest politically as
well as from emitters.
CarbonCuts and the municipality of Lolland have
collaborated since early 2022 to mature the CO
2
storage site.
Environment continued
At BlueNord we recognise that
CCS is key to meeting Denmark’s
ambitious climate commitments. A
critical part of our CCS value chain
is Project Ruby, which we continue
to advance with a clear objective
of delivering a sustainable and
economically viable project.
Looking ahead, CarbonCuts has
taken another decisive step by
applying for a second licence in
a near-shore area in Denmark,
further expanding our potential for
safe and effective CO
2
storage.
We anticipate the outcome of this
application in the third quarter
of 2025.”
Euan Shirlaw
Chief Executive Officer, BlueNord
47 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
The Ruby project covers CO
2
receiving
facilities, intermediate storage, pumping and
injection facilities as well as a number of wells
for injection and observation. Several CO
2
import options are being investigated to allow
flexibility and optionality in terms of pace,
customer requirements and volume. A phased
development approach is being considered with
CO
2
injection anticipated to commence by 2029.
CarbonCuts has gained solid political support via
frequent contact with the municipality, the local
business association, Business Lolland-Falster,
as well as other major stakeholders. Securing
and sustaining public acceptance is of utmost
importance. To achieve this, the Company created a
range of brochures, videos and other materials, and
organised three information meetings with citizens
following the acquisition of the license. CarbonCuts
continues to actively engage with stakeholders,
including local communities, regulatory authorities
and industry partners, seeking input and feedback
to inform our strategic decisions, and to ensure our
social license to operate.
After being awarded the exploration license
CarbonCuts has been preparing for the next
phases of Project Ruby, including seismic surveys
to be conducted early 2025, as well as preparing
exploration drilling and maturing the project in
general. The focus remains firmly on the goal:
to launch an economically sustainable storage
solution with accompanying infrastructure that can
contribute to fulfilling Denmark’s CO₂ goals and
serve as an inspiration for CO₂ storage globally.
As a subsidiary of BlueNord, CarbonCuts has
access to extensive knowledge of the energy
sector and the Danish subsurface, which has
proven beneficial in building up the organisation.
Further, BlueNord’s insights and capital
strengthen CarbonCuts’ position as a CO₂
storage operator.
Timeframe until the beginning of
operations for the Ruby project
2024
Award of storage licence
2025
3D Seismic work
2026
Drilling and testing
2027
Fabrication and construction
2028
Development drilling
2029
CO
2
storage
Energy efficiency
For DUC operations, which consume the majority
of BlueNord’s energy, potential energy efficiency
gains are regularly assessed. Most of the DUC
production system, apart from the Tyra facilities,
relies on equipment installed up to 50 years ago.
At the time of their installation, the primary design
criteria focused on safety, robustness and reliability,
rather than energy consumption efficiency and
minimising the environmental footprint.
While modifications are being implemented
to reduce environmental impact and/or fuel
consumption, the scope of these changes is limited
by the equipment itself, such as gas turbines, gas
compressors and water pumps. Over the past two
years, activities such as air filter replacements on
turbines and optimisation of compressor cooling
have been carried out to enhance fuel consumption
and improve energy efficiency.
Environment continued
The refurbishment of Tyra has provided an
excellent opportunity to enhance the facility’s
energy efficiency and reduce greenhouse gas
emissions compared to the old Tyra facilities. The
energy efficiency gain is anticipated to be around
30percent for the same production throughput
at restart. As a result, Tyra-produced gas will
reduce scope 1 emissions by 30 percent, when
compared to 2018 levels, before the production
of the field was temporarily shut-in. Additionally,
the new Tyra facility will be able to further reduce
fuel consumption as production declines, thanks
to the implementation of variable speed drive
compressors. This will enable further emissions
reductions from the hub over time.
Electrification
Electrification of DUC operations is continuously
evaluated in light of technological advancements,
equipment costs and access to renewable
power sources. The location of the DUC assets,
approximately 200 km from the coast, poses
significant challenges for electrification,
especially considering the grid is not fully
decarbonised. The DUC partnership remains
committed to exploring options and reviewing
new concepts as they emerge.
LDAR/MMV
Leak Detection And Repair (LDAR) surveys
are designed to identify, monitor and mitigate
fugitive emissions and leaks of volatile organic
compounds and methane.
LDAR is one of the essential tools in our
Measuring, Monitoring and Verification (MMV)
plan. LDAR surveys have been conducted on
DUC installations using Optical Gas Imaging
(OGI) cameras, followed by maintenance
to address identified leaks. Since 2022, the
DUC has implemented annual drone survey
campaigns using Ultralight Spectrometers to
measure methane and carbon dioxide levels
above our production hubs. The EU Regulation
on the reduction of methane emissions in the
energy sector (2024/1787), enforced in 2024,
mandates offshore installations to perform Type
1 LDAR surveys annually. Drone surveys since
2022 have allowed the DUC partnership to
better assess equipment performance, such as
flare destruction rates, and to stay ahead of EU
Regulation requirements.
Decarbonisation pathway
The decarbonisation pathway for DUC
operations is continuously re-evaluated,
considering CFR opportunities, the feasibility
of electrification and the cessation dates of
asset production. In addition to its working
interest in the DUC partnership, BlueNord
actively supports CCS initiatives. We also
acknowledge that the DUC licence currently
expires in 2042 and the framework conditions
in Denmark under the North Sea Agreement
is such that oil and gas production is planned
to cease in 2050.
48 BlueNord
Environment continued
Task Force on Climate-
related Financial
Disclosures (‘TCFD’)
In line with TCFD recommendations, a report in
accordance with TCFD is, as of 2022, an integral
part of BlueNord’s annual financial reporting.
The report is reviewed annually by our Audit
Committee, Technical Advisory Committee
and the Board.
TCFD encourages a standardised reporting
structure for financially material climate-related
risks and opportunities to give investors, lenders
and insurers enhanced comparability when
assessing and pricing pertinent companies.
The TCFD framework is made up of eleven
recommended disclosures divided into four
pillars that represent core elements of how
organisations operate. The four pillars are:
governance, strategy, risk management, and
metrics and targets.
Moreover, the framework separates into three
main categories: risks related to the physical
impacts of climate change, risks related to the
transition to a lower-carbon economy and
climate-related opportunities. TCFD has also
incorporated financial impact as an integral part
of its disclosure recommendations.
At BlueNord we have identified the most significant climate-related
risks and opportunities we face.”
GOVERNANCE RECOMMENDED DISCLOSURES
Disclose the organisation’s
governance around
climate-related risks and
opportunities.
a) Describe the Board’s oversight
of climate-related risks and
opportunities.
b) Describe the management’s
role in assessing and
managing climate-related
risks and opportunities.
STRATEGY RECOMMENDED DISCLOSURES
Disclose the actual and
potential impacts of
climate-related risks
and opportunities on the
organisation’s business,
strategy and financial
planning where such
information is material.
a) Describe the climate-related
risks and opportunities the
organisation has identified
over the short, medium
and long term.
b) Describe the impact of
climate-related risks
and opportunities on the
organisation’s businesses,
strategy and financial
planning.
c) Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios,
including a 2°C or lower
scenario.
RISK MANAGEMENT RECOMMENDED DISCLOSURES
Disclose how the
organisation identifies,
assesses and manages
climate-related risks.
a) Describe the organisation’s
processes for identifying and
assessing climate-related risks.
b) Describe the organisation’s
processes for managing
climate-related risks.
c) Describe how processes for
identifying, assessing and
managing climate-related
risks are integrated into the
organisation’s overall risk
management.
METRICS & TARGETS RECOMMENDED DISCLOSURES
Disclose the metrics and
targets used to assess
and manage relevant
climate-related risks and
opportunities where such
information is material.
a) Disclose the metrics used by the
organisation to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
b) Disclose scope 1,
scope 2 and, if appropriate,
scope 3 greenhouse gas
(GHG) emissions, and the
related risks.
c) Describe the targets used
by the organisation to
manage climate-related
risks and opportunities and
performance against targets.
49 Annual Report and Accounts 2024
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Environment continued
1. Governance
a. Board-level oversight
The Board fully supports the recommendations of the TCFD. The Board Chair has overall
responsibility for the management of climate-related issues at BlueNord, and the Board is responsible
for ensuring that climate-related targets are defined and addressed as part of Company strategy.
The Board receives regular updates from management, and will ensure that our risk management and
internal control systems are adequate in relation to the regulations governing the business.
The Board reviews the Group’s main risk areas and internal control systems annually. This includes the
Group’s values, Code of Conduct and corporate responsibility policy. The Board reports annually on
climate impacts and any risks that the Company faces.
b. Management-level oversight
Executive management is responsible for identifying risks and opportunities, and for implementing
effective processes and mitigation efforts. This includes climate-related issues, risks and opportunities
within the managers’ respective areas of responsibility.
The Chief Corporate Affairs Officer has responsibility for ESG strategy, and reports directly to the
CEO. In 2020, an ESG Committee was established to support BlueNord’s commitment to ESG and
to evolve our contribution to the energy transition. In late 2024 it was decided to integrate the controls,
risks and processes associated with sustainability into the responsibilities of the Audit Committee
to align with the responsibilities the Audit Committee already takes regarding the internal control
framework. ESG strategy is integrated into the overall strategy of the Company with responsibility
at the Board level.
Climate risks are also assessed as part of BlueNord’s risk management process. For more
information on BlueNord’s risk management processes, including the assessment of
climate-related risks, see the relevant sections of this report.
See Governance Operating Model on page 69.
2. Strategy
a. and b. Identified climate-related risks and opportunities
In line with the recommendations laid out in the TCFD framework, BlueNord has conducted a
process to assess how, and to what extent, the Company is exposed to climate risk. Management
representatives for Finance and Corporate Affairs identified significant physical risk, transition risk, and
opportunities created by climate change.
Risks and opportunities were assessed in a strategic and financial context, against three different time
horizons and four different climate scenarios. This assessment was reviewed again in January 2025.
The following time horizons were used:
• Short term – 2024-2025.
• Medium term – 2025–2030.
• Long term – 2030–2050.
These four International Energy Agency (‘IEA’) climate scenarios were used:
• Net Zero Emissions by 2050 scenario (‘NZE’).
• Stated Policies scenario (‘STEPS’).
• Sustainable Development scenario (‘SDS’).
• Announced Pledges scenario (‘APS’).
For BlueNord it is important to identify the most significant climate-related risks and opportunities
we face, as this can help us to make informed decisions about how to mitigate, or take advantage of,
these factors.
To identify the most critical risk factors, the management representatives assessed factors that could
potentially impact the operations negatively and the probability of occurrence.
To identify the opportunities with the highest potential, the management representatives assessed
how the factors could potentially impact the Company positively, and the degree of difficulty posed by
taking advantage of any opportunity.
Risk factor defined as most critical:
1. High/increased CO
2
tax.
Opportunities defined with greatest potential:
1. Resource efficiency.
2. Evolution of financial markets.
3. Relatively flexible BlueNord investments.
4. Sector already strictly regulated and well-prepared for harsh weather conditions.
Task Force on Climate-related Financial Disclosures (‘TCFD’)
50 BlueNord
Environment continued
Acute physical risk
Through our acute physical risk identification process, we identified extreme weather due to increased frequency and intensity of strong wind, storms, and hurricanes as most significant to BlueNord.
Such events may impact BlueNord’s direct operations, or cause disruptions in the supply chain. Any events delaying production have a financial implication.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Increased frequency
and intensity of strong
wind, storms, and
hurricanes
Climate change and temperature
increases may lead to more extreme
weather. The wind speed is expected
to increase, and the air will contain more
moisture. This will lead to increased
occurrences of strong winds, storms,
and hurricanes in the future.
• Inability to have people
safely Offshore.
• Inability to transport people
and equipment, as this
is done by helicopter and
supply ships.
• Weakened production
capacities due to shortage
of supplies, employees
and possible damage
to the equipment.
• Reduced revenue and
increased costs associated
with asset repair and
additional labour. Potential
impact on production.
BlueNord sees the greatest
consequences in STEPS, but the
negative effects may be more
relevant for the supply chain at
an earlier stage.
Long term. BlueNord is constantly working to
strengthen our work on human rights and decent
working conditions, by reviewing and revising
our Corporate Social Responsibility Guidelines.
This helps us establish governance documents,
routines and instructions related to due diligence
processes and our supply chain to ensure that
we apply to the highest standards of professional
and ethical standards in the conduct of our
business affairs. In addition, TotalEnergies has in
2024 provided a letter of comfort related to their
compliance programme, with this the main part of
the companies supply chain has been assessed.
Chronic physical risk
Chronic physical risks refer to longer-term shifts in climate patterns, such as sustained higher temperatures that may cause sea level rise or chronic heat waves.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Rising sea levels
Sea levels may rise due to expanding
ocean volumes from temperature
increases and from melting glaciers
and ice sheets.
• High waves which hit the
infrastructure on the platform
causing damage.
• Increased cost due to
adaption of platforms in order
to handle rising sea level.
Most relevant in STEPS. Long term. The platforms have already been reconstructed
or assessed to meet the risk of sinking seabeds.
This has prepared them more for extreme weather
events and rising sea levels.
Transition risk – Policy and Legal
Transitioning to a lower-carbon economy may entail extensive policy and legal changes to address mitigation and adaptation requirements related to climate change. We have identified the following policy
actions and climate-related litigation claims as the most significant for BlueNord.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Uncertainty related
to the EU Taxonomy
and how this will
impact BlueNord
Increasing need to demonstrate that
economic activities are environmentally
sustainable.
• More difficult and more
expensive to raise support
from a capital market
perspective and debts
perspective.
• Limited access to capital.
• Increased cost of capital.
Most relevant in NZE/SDS. Medium and
long term.
Focus on having a close dialogue
with investors.
Transparency is crucial when it comes to climate
risk. BlueNord focuses on being as transparent as
possible towards investors
and other stakeholders.
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
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Environment continued
Transition risk – Policy and Legal continued
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Increased carbon
pricing and taxes
Carbon tax is an instrument for cost-
effective cuts in GHG emissions.
Other extraordinary taxes or measures
to affect the operations of high-
emission sectors could also be put in
place as solidarity measures.
• Low emissions and being
part of the energy transition
will play a bigger part in the
licence to operate.
• Increase cost of the business
and shorten life of assets,
and increase likelihood of
stranded assets.
Most relevant in NZE/SDS. Short, medium
and long term.
Ongoing management, analysis and
effective strategies to understand the
size of CO
2
obligations and their cost.
Transition risk – Technology
Technological improvements or innovations that support the transition to a lower-carbon, energy-efficient economic system can have a significant impact on organisations.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Transition to lower
emission technology
Gas has a role and opportunity
in the transition. In the long term,
the need for oil and gas will change/
decrease.
Technology also represents an
opportunity in identifying, addressing,
and reducing risks.
Changes in demand due to:
• Declining cost on renewables.
• Electrification of industries
and transportation.
• Advanced technology, which
makes it possible to monitor
and detect possible spills
and reduce impact, and
consequently, identify and
reduce emissions.
• Decrease in revenue, due to
reduced oil and gas demand
• Technology for monitoring
will provide more precise
measures, ability to respond
immediately and potentially
reduce financial impact.
Most relevant in NZE. Medium and
long term.
Investing in projects in the CCS value
chain, both onshore and offshore to
support hard to abate emissions.
Transition risk – Market
While the ways in which markets could be affected by climate change are varied and complex, one of the major ways is through shifts in supply and demand for certain commodities, products, and services as
climate-related risks and opportunities are increasingly taken into account.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Changes in
gas demand
The transition to a zero-emissions
society is expected to decrease the
demand for gas in the long run. The
speed of transition is uncertain.
The current geopolitical situation has
increased the focus on energy security
where gas plays a part, but also where
the transition to renewables has
increased in pace.
• Declining demand based on
new technology. For instance,
electric vehicles, heat pumps,
an increasingly circular
economy and less use
of plastic.
• Decreased revenues. Most relevant in NZE. Medium and
long term.
DUC gas production will decrease and stop in
2050 in line with Denmark's commitment to a
complete phase out of oil and gas production by
2050.
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
52 BlueNord
Environment continued
Transition risk – Reputation
Climate change has been identified as a potential source of reputational risk tied to changing customer or community perceptions of an organisation’s contribution to or detraction from the transition
to a lower-carbon economy.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Reputation risk
in the era of ESG
Fossil fuel is not a renewable energy
source and leaves a large carbon
footprint. Nonetheless, gas will play
a role in the future energy mix.
Abandonment of infrastructure needs
to be done in a safe and sustainable
manner thus contributing to circularity
of these materials.
• Oil and gas producers
generally have a poor
reputation in the field of
ESG. BlueNord needs to
demonstrate the required
accountability and
responsibility to maintain its
social licence to operate.
• Increased requirements for
sustainable abandonment.
• Reduced revenue from
decreased demand for
goods/services.
• Reduction in capital
availability and higher cost
of capital.
• Increased cost related to
abandonment/recycling.
Most relevant in NZE, SDS. Medium and
long term.
Presenting a balanced view of both our production
activities and energy transition initiatives and
projects, for example Carbon Cuts CO
2
storage
project.
BlueNord is working diligently to recycle materials.
The Company is also assessing sustainable
decommissioning strategies which leave
infrastructure on the seabed based on value to
sealife.
Resource efficiency
There is growing evidence that it is possible for organisations to reduce operating costs by improving efficiency across production and distribution processes, buildings, machinery/appliances,
and transport/mobility.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Efforts to increase
resource efficiency
More efficient operations can lower cost
and reduce emissions intensity. Good
for both business and the environment.
• Increased operational
productivity leads to
increased revenue and
reduced unit costs.
• Increased interest
from investors.
• Easier access to capital.
• Increased revenue.
All. Short, medium,
and long term.
Reducing emissions from our facilities in
collaboration with the Operator. We work actively
to reduce flaring and to improve production
optimisation to reduce emissions and energy
(fuel) use.
Energy sources
The trend toward decentralised clean energy sources, rapidly declining costs, improved storage capabilities, and subsequent global adoption of these technologies is significant.
Organisations that shift their energy usage toward low-emission energy sources could potentially save on annual energy costs.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Use of alternative
energy in operations
The world is switching to renewable
energy and electrical operating
solutions that reduce
the emission of CO
2
.
BlueNord’s platforms are gas-fired or
fired by diesel generators. There is a
potential to develop the approach
to alternative energy sources.
• Emissions reduction. • Easier access to capital. Most relevant in NZE. Medium and
long term.
Dialogue with the Operator on alternative energy
sources and potential electrification of facilities
remains an opportunity if economic to do so.
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
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Environment continued
Products and services
Organisations that innovate and develop new low-emission products and services may improve their competitive position and capitalise on shifting consumer and producer preferences.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
New products
To reach the climate targets and reduce
carbon emissions internationally, CCS
technologies need to be deployed on
a large scale and will be increasingly
important.
• CCS represents a benefit for
the climate which does not
involve the sacrifice of crucial
energy sources.
• Increased interest from new
investors and easier access
to capital.
Most relevant in NZE. Medium and
long term.
Project Ruby could store up to 1.5 MTPA by 2030
dependent on successful exploration phase, and
help Denmark and Europe achieve their climate
target. CarbonCuts applied for a new exploration
license for a near-shore CO
2
storage site in
Denmark, demonstrating a continued commitment
to the development of the CCS value chain.
Markets
Organisations that proactively seek opportunities in new markets or types of assets may be able to diversify their activities and better position themselves for the transition to a lower-carbon economy.
In particular, opportunities exist for organisations to access new markets through collaborating with governments, development banks, small-scale local entrepreneurs, and community groups in
developed and developing countries as they work to shift to a lower-carbon economy. BlueNord has addressed the following opportunity.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Financial markets
evolvement
ESG and climate risk is increasingly
seen as an important risk in the
financial markets.
• Shift from the typical funding
sources to more targeted
structures.
• For those not addressing this
– higher risk and costs.
• Changed interest rate market.
Relevant in all scenarios. Short, medium
and long term.
Evaluate the opportunities that the energy
transition can bring to retain existing financiers and
access new debt and equity investors market.
Resilience
The concept of climate resilience involves organisations developing adaptive capacity to respond to climate change to better manage the associated risks and seize opportunities, including the ability to
respond to transition risks and physical risks. Opportunities related to resilience may be especially relevant for organisations with long-lived fixed assets or extensive supply or distribution networks; those
that depend critically on utility and infrastructure networks or natural resources in their value chain; and those that may require longer-term financing and investment.
Identified
risk
Description
of risk
Potential
impacts
Potential financial
impacts
The climate scenario in which
the risk is most relevant
Time
horizon
Mitigation
strategy
Strictly regulated
sector
The energy transition will result in
stricter regulations.
• Changes in regulations, CO
2
taxes.
• For those that are already in
line with the regulations it can
decrease the demand for
mitigation and adjustment
of strategy.
Most relevant in STEPS. Short, medium,
and long term.
BlueNord is already part of a strictly regulated
sector that operates in harsh weather conditions.
Many precautions and adaptations are therefore
already in place and could be a competitive
advantage.
Flexible future
investments
Future market developments will
greatly affect the return on
investments in fossil fuels.
• Increase in future profits by
being dynamic and adjusting
investment strategy.
• Less risk of being locked
in outdated solutions and
demand scenarios; flexibility
to diversify and increase
profitability.
Most relevant in STEPS. Short, medium,
and long term.
BlueNord can choose to invest in more gas-
weighted projects or CCS value chain projects
depending on how the market is evolving. Currently,
the market for gas remains attractive and continues
to be a value fuel along with oil.
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
54 BlueNord
Environment continued
c. Scenario analysis
In line with the recommendations laid out by the TCFD, BlueNord conducted a qualitative scenario analysis in 2023 of all identified risks and opportunities as part of the climate risk assessment.
The Net Zero
Emissions by 2050
Scenario (‘NZE’)
Limiting the global temperature rise to 1.5°C without a temperature overshoot (with a 50 percent probability). The NZE is a normative scenario, meaning it starts with a defined goal to achieve net-zero CO
2
emissions by 2050, and shows
an example of a pathway that could get the world to that target.
In this scenario, demand for oil falls by more than 2 mbpd per year between 2020 and 2050. Demand for natural gas grows to 2025, drops after 2025 and falls well below 2020 levels by 2030.
The Sustainable
Development
Scenario (‘SDS’)
IEA’s Sustainable Development Scenario (‘SDS’) is compatible with the Paris Agreement’s less ambitious ‘well-below 2°C’ goal. It assumes all energy-related SDGs and all current net-zero pledges are achieved, with advanced
economies reaching net-zero emissions by 2050, China by 2060 and all others by 2070 at the latest.
It has a 50 percent probability of limiting global temperature rise to 1.65°C, assuming no extensive net negative emissions. With some net negative emissions after 2070, temperature rise could be reduced to 1.5°C
by 2100.
The Announced
Pledges Scenario
(‘APS’)
This scenario appears for the first time in the World Economic Outlook 2021. It assumes that all climate commitments made by governments around the world, including Nationally Determined Contributions and longer-term net-zero
targets as of mid-2021, will be met in full and on time.
In the APS, global oil demand peaks soon after 2025 and then falls by around 1 mbpd per year to 2050. Demand for natural gas also reaches its maximum level soon after 2025 and then declines slowly.
The Stated Policies
Scenario (‘STEPS’)
Rather than assuming that governments will reach all announced goals, this scenario reflects a sector-by-sector assessment of the specific policies that have been put in place, as well as those that have been announced by
governments around the world.
This scenario provides a more conservative benchmark for the future. In the STEPS, global oil demand exceeds 2019 levels by 2023 before peaking in the mid-2030s and then declining very gradually
to 2050. Demand for natural gas continues to rise after 2025 and is around 15 percent higher in 2030 than in 2020.
Task Force on Climate-related Financial Disclosures (‘TCFD’) continued
3. a., b., and c. Risk management
The identification, assessment and management
of climate-related risks and opportunities is an
integral part of BlueNord’s multidisciplinary risk and
opportunity management. The BlueNord Board
and management will conduct regular reviews of
the Group’s activities for identifying, assessing,
and responding to climate-related risks and
opportunities. The risk management process will be
reviewed on an annual basis.
2023 was the first year of implementation
of the climate-risk management process
recommended by TCFD. A material risk and
opportunity matrix system developed by Tavler
AS was used as a foundation for this process.
The identification and assessment processes
were conducted through a workshop with key
executive management team members and
relevant ESG representatives from different
organisational levels and functions, providing a
balanced picture of the risks and opportunities
faced by BlueNord.
In the matrix, the impact (large, relatively large,
relatively easy, easy) and likelihood (high/low) of
each risk and opportunity are determined. Based
on each risk’s categorisation, BlueNord will
develop, review, and implement response plans
to mitigate risks and maximise opportunities.
4. a., b., and c. Metrics and targets
BlueNord works to reduce our carbon footprint
while contributing to energy security. In 2024,
BlueNord has revised its commitment regarding
DUC installation powering from renewables.
While DUC electrification continues to be
assessed, neither feasibility nor the timeline can
be ascertained. With the North Sea Energy Island
Project on pause, an alternative renewable power
source has to be identified. The GHG emissions
intensity target which was encompassing the
impact of renewable power also had to be
revisited as a result.
In line with the DUC Operator’s targets, our
commitment is to reduce scope 1 and scope
2 emissions by 40 percent from DUC assets
by 2030 compared to 2015 levels. BlueNord
will also continue to invest in CarbonCuts CCS
which includes Project Ruby and will review other
strategic opportunities in the CCS value chain.
As a non-operator, BlueNord will work to protect
the environment to the greatest possible extent,
both in its own operations and through the
Company’s partnership in the DUC. The data
reported on climate and nature have been supplied
by the Operator TotalEnergies for the DUC.
BlueNord will monitor and report on performance
year-on-year as part of our sustainability strategy.
BlueNord is committed to independently verifying
its direct and indirect emissions. The following
metrics are used to assess climate-related
risks and opportunities: CO
2
emissions, fuel
consumption, flaring, fugitive emissions, nitrogen
oxides (‘NOx’) and sulphur oxides (‘SOx’)
emissions, GHG emissions, and GHG intensity
related to DUC operations.
55 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Environment continued
Pollution
Emissions, chemical usage and discharge to
the sea are regulated with permits issued by
the regulatory body. These are reported to the
authorities following third-party verification of the
Operator’s report.
Number of sites and area
The DUC portfolio consists of eight sites that
are covered by OSPAR measures. The sites
are located offshore in the Danish North Sea,
some 200 km off the West coast of Denmark.
CarbonCuts’ Ruby licence is located near
the town of Rødby onshore Denmark.
Air
BlueNord recognises that air quality can affect
public health and the environment. Traditional
air pollutants in the oil and gas E&P industry can
include ammonia, carbon monoxide, sulphur
oxides, nitrous oxides, non-methane volatile
organic compounds, and particulate matter. As
part of our environmental management, we work
alongside the Operator to continuously monitor
our non-GHG air emissions and put measures in
place to reduce the impact of our activities.
Air emissions are monitored and independently
verified prior to being reported via OSPAR on a
yearly basis. The air emissions reported include
CO
2
, NOx, SO
2
, CH
4
, and nmVOCs.
Please refer to Appendix 2 on page 139 for 2024
emission figures.
Water and marine resources
Formation water is produced along with the
hydrocarbons and a portion is discharged into the
sea following treatment. Sea water is injected into
some of the DUC fields for pressure support and
enhanced reservoir sweeping. Formation water is
re-injected in some fields.
Discharge of produced water to the sea can
contain chemicals that were injected in the
production process, and traces of hydrocarbons,
water, oil and chemical discharges to the sea
are measured and reported to the Competent
Authorities. The total oil discharged to the sea
along with the water is regulated by a discharge
permit. The yearly volumes are independently
verified and reported to the Danish Environmental
Protection Agency (DEPA) and OSPAR.
In partnership with the DTU and DOTC, the
DUC partnership has been devising ways to
improve the treatment and disposal of the water
produced alongside hydrocarbons. The current
Produced Water Management Programme uses
technology which purifies water to an exceptional
standard, such that the water being let out to sea
is of greater purity than that which legislation and
discharge permits require.
Substances of concern
Chemical usage and discharge are regulated for
the oil and gas industry.
The DUC partnership uses chemicals that are
required in the oil and gas production process as
well as in drilling and well intervention operations.
Chemicals that pose little or no risk to the
environment are prioritised (green chemicals).
Use of yellow or red chemicals are limited to
situations where no commercial alternative is
available. Drilling and well intervention activities
do not involve use of any red chemicals.
DUC operations do not use nor discharge
chemicals that are listed in OSPAR’s list of
Substances for Priority Action (black chemicals).
Please refer to Appendix 3 on page 140 for 2024
discharge to sea figures.
Discharges of hydrocarbons, acids and muds
Discharge of dispered hydrocarbons along with
produced water discharge Oil-in-Water (OiW)
is regulated by permits. DUC’s installation OiW
concentration is being closely monitored and
performance outperforming the regulatory limit
of 30 mg per litre. Please refer to Appendix 3 on
page 140 for 2024 discharge figures.
Spills
Spills refer to accidental release of oil or
chemicals to the environment. Please refer to
Appendix 3 on page 140 for 2024 spill figures.
56 BlueNord
North Sea Environment Portal
Tyra E Platform
Good: 50-75 Poor: 0-25 Average: 25-50
The chart shows scores across 4 areas (Marine biodiversity, Non-Indigenous
species, Seabed integrity and Contaminants) to calculate an overall
Environmental Status using the EU ‘Marine Strategy Framework
Directive’. Tyra E platform is rated ‘Excellent’.
98
95
100
99
100
0 50 100
Environmental Status
1. Marine Biodiversity
2. Non-Indigenous Species
6. Seabed Integrity
8. Contaminants
Environment continued
Biodiversity and
ecosystems
Biodiversity action plan
As partners in the DUC, we align with the Operator
in implementing a Biodiversity Action Plan (BAP) to
monitor flora and fauna near offshore installations.
While a third party manages this initiative, BlueNord
values environmental stewardship and supports
industry-wide efforts to advance biodiversity
knowledge in offshore environments.
The BAP addresses the main concerns of key
stakeholders such as the positive impact of leaving
structures as reefs during decommissioning,
requirement for baseline data on birds and fish, and
the spread of invasive species through structures
and vessel movement.
One of the key actions proposed in the BAP
was to develop a data sharing platform on marine
biodiversity and environment. As a result, the
North Sea Environmental Portal was developed
by TotalEnergies EP Denmark and Dansk
Hydraulisk Institut A/S (DHI) on behalf of the
Danish Underground Consortium (DUC) to fulfil
the need for a data sharing platform on marine
biodiversity and environment. The portal,
launched in December 2024, provides decades
of data on the marine environment, covering
aspects such as seabed conditions, water quality,
fish, mammals, benthic animals, and plants. It is
accessible to researchers and the public.
The portal aims to provide a comprehensive view
of environmental and biodiversity developments in
the Danish North Sea, helping researchers identify
trends, make predictions and base decisions on
solid data. The initiative is the first of its kind in
Denmark and aims to enhance the understanding
and protection of the marine environment. The
portal documents seabed chemistry, biodiversity
and ecological indicators.
Circular economy
Decommissioning
We support the DUC’s ambition to locally recycle
obsolete infrastructure. During the dismantling of
the old platforms and structures from the Tyra field,
98.5 percent of the material was either directly
reused or recycled at local Danish recycling yards.
For example, suitable generators were repurposed
elsewhere, while other parts were processed and
traded internationally.
We will use the wealth of knowledge gained during
Tyra redevelopment over the coming decades
to reduce the impact upon the environment
from decommissioning and abandonment of
offshore installations and pipelines relating
to DUC operations. In partnership with the
DOTC, BlueNord is researching cost-effective
abandonment options that will deliver robust
environmental protection.
Drilling waste, muds and cuttings
Drilling waste, such as muds and cuttings, are
addressed as follows:
• The oil content of the Water Based Mud (WBM)
and drill cuttings returned from drilling the
reservoir sections shall be monitored regularly
so that it does not exceed 1percent, on average.
• WBM is used for different drilled sections and
for drilling other wells to maximise re-use and
re-cycling.
• Discharges of WBM to sea is minimised to
reduce impact.
• Drill cuttings returned from drilling the reservoir
sections are taken to shore for disposal.
• No discharge of Oil Based Mud (OBM) is
allowed into the sea, it is returned to shore for
processing and disposal.
* The platform scores are calculated as the mean of all platform stations.
Excellent: 75-100 No data
57 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Bold
Purposeful
Dependable
We are:
Social
Health, safety
and environment
The Health, Safety and Environment (HSE)
section in this Annual Report pertains
exclusively to our company’s own workforce.
While these metrics and initiatives focus on our
direct employees, we also maintain oversight
across operations where we act as a non-
operating partner. Our commitment to HSE
standards extends to monitoring and
influencing the safety practices of our partners
to ensure the highest level of care and
compliance throughout all collaborative efforts.
Our HSE vision of ‘zero accidents, zero
incidents, and zero impact to the environment’
underpins our commitment to:
• Ensuring safe and efficient operations.
• Compliance with regulatory standards.
• Aiming to minimise climate and
environmental impacts to the lowest
feasible level.
BlueNord is ultimately accountable for the
contribution of all our people to health, safety
and environmental outcomes and continuous
improvement in these areas.
By complying with applicable standards
and regulations and continually improving
our management system we make positive
progress towards the key goal of zero fatalities
and zero recordable work-related accidents.
As a partner in DUC, we are committed to
Health, Safety, and Environment (HSE) by
actively supporting the Operator’s excellent
HSE efforts and proactively participating in
meetings and initiatives. Since our constructive
dialogue regarding offshore working
environment issues on TotalEnergies
platforms in DUC began in 2022, we have
established strong relationships and trust, with
our Lead Operations Engineer participating
regularly in Tyra’s Offshore Safety Committee
through 2024.
For our CCS operations, our HSE goal is to
have zero accidents, zero incidents and zero
long term impact to the environment and the
community where we operate.
We are committed to this vision through
ensuring safe and efficient operations, to
continually improving our performance and
introduce and follow the Institution of Oil & Gas
Producers (IOGP) lifesaving rules.
CarbonCuts is in the exploration phase with
Project Ruby and is not yet storing CO₂. If and
when we establish a storage facility, we will use
the most advanced monitoring technologies
and geological analysis methods to ensure
that storage takes place safely and under fully
controlled conditions. We work with authorities
and experts to guarantee that all safety
standards are met and that our activities do not
pose a risk to people or the environment.
Planning of preventative safety and
environmental work involves the participation
of local health and safety representatives to
maximise employee welfare and minimise our
already low rates of sickness absence. In
addition, all employees are offered annual
ergonomic assessments.
Total sick leave in the BlueNord Group
was reported to be 0.88 percent in 2024.
No work-related accidents or injures were
reported in 2024.
Human rights
BlueNord is dedicated to upholding
fundamental human and labour rights in all
our operations and interactions with business
partners. We are committed to complying
with all applicable laws and regulations.
We conduct our business in a manner that
respects the rights and dignity of all people.
We support and acknowledge the fundamental
principles of human and labour rights as defined
in the International Bill of Human Rights, the
United Nations Guiding Principles on Business
and Human Rights, the Universal Declaration
of Human Rights, and the International Labour
Organisation Declaration on Fundamental
Principles and Rights at Work.
Our human rights work is also guided by the
OECD Guidelines for Multinational Enterprises.
Our human rights commitments are set out in
our Code of Conduct.
Read our Human and Working Rights and
Diversity and Inclusion Policy at
www.bluenord.com
Work-related accidents or injuries in 2024
1
0
Total sick leave
1
0.88%
1. Excluding non-operational DUC interests
Social
We value the unique
contributions of every team
member. As of the end of
2024, we proudly counted
forty three employees and
four in-house consultants
across our three locations.
In this section:
Health, safety and environment 57
Our people and values 58
Workers in value chain 61
Affected communities 61
Community engagement 61
69%
13%
18%
Full Time Equivalent 40.86
Oslo
London
Copenhagen
40%
60%
Gender split
Male
Female
5%
35%
16%
28%
11%
5%
18–26
27–35
36–45
46–55
56–64
65+
Age distribution
83%
17%
18–26
27–35
36–45
46–55
56–64
65+
New employees
58 BlueNord
Our people and values
BlueNord upholds the principles of freedom
of association and collective bargaining. We
fully respect our employees’ right to form and
join trade unions, as well as their right to remain
non-unionised. Currently, there are no trade
unions represented at BlueNord. Therefore,
the Company is not bound by any collective
bargaining agreements, except as required by
local legislation, case law and legal practice.
At BlueNord, 33 percent of the team holds
managerial roles, meaning they have one or more
direct reports. Despite this, BlueNord maintains a
predominantly flat management structure below
the Group’s Executive Team.
As an organisation, BlueNord focuses on and
prioritises the presence of the best-qualified
person in every role, regardless of their gender.
This applies to both the recruitment of new
employees and the assessment of performance
and capabilities for internal advancement.
Building culture is a collective effort at BlueNord.
We strive for an inclusive culture with full
employee engagement, where everyone feels
empowered, respected and has a strong sense of
belonging. With commitment from the Executive
Team the entire organisation has participated in
our culture journey 2024, through group-wide
camps, team discussions and sessions.
Our team represents eleven different nationalities
and a wide range of ages, background,
experiences, and ways of thinking. These are
some of the reasons why many of our employees
look forward to going to work every morning.
Since January 2021 BlueNord has measured
“employee engagement” and satisfaction with
the physical “working environment” annually.
Since January 2023, the survey has also included
measurements on Diversity and Inclusion.
The key objective of the present survey is to follow
up on progress based on the results from previous
surveys to contribute to the future development of
BlueNord as a good place to work. The employee
engagement part of the survey consists of 10
overall themes related to psychological aspects
of job engagement. In addition to this, one part of
the survey relates to the physical aspects of the
working environment in BlueNord. Data collected
from the survey is processed to discover overall
trends and nine semi-structured interviews were
conducted to allow for deeper insights into the
themes. The results of the survey are then fed
back into the BlueNord culture plan and Working
Environment Committee.
The BlueNord values
Our values mirror who we are as a company
and as individuals. They guide us towards our
daily actions and shape the future we aspire
to. They form the foundation of our thoughts,
behaviours and interactions. These values
influence our operations, leadership and
decision-making processes.
To foster both individual and team growth, as well
as high performance, our 2024 cultural journey
concentrated on the key elements necessary
for creating a positive, strong safety culture and
developing a learning organisation
Our initiatives focused on aligning our culture
with our strategic priorities, leveraging process-
driven performance to achieve our goals. This
year, insights from elite sports, particularly
the resilience and adaptability of an Olympic
medallist, provided valuable lessons that deeply
resonate with our corporate ethos.
Social continued
Executive team
All managers
Staff
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Male Female
Leadership-gender distribution (M/F as %):
59 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
85
86
85
76
90
81
At BlueNord everyone has equal opportunities for
development regardless of gender, age, ethnicity, sexual
orientation, family status, disabilities, religion or language
I feel a sense of belonging at BlueNord
I ﬁnd that I can bring my whole
self to work at BlueNord
85
76
85
69
86
72
87
74
I look forward to going to work
My work tasks motivate me
I feel appreciated at work
Overall, I am satisﬁed with my work
Extract from Employee Engagement Survey (2023 and 2024)
Our people and values
continued
Work-life balance
BlueNord advocates a hybrid working model, a good
work-life balance and supporting our team at various
life stages. We offer leave schemes for childcare and
caregiving to close relatives, provide sick pay and have
implemented gender-equal terms for the duration
and payment of parental leave.
Diversity
BlueNord believes embracing diversity, equity and
inclusion positively impacts recruitment
and retention and drives performance across
the Company.
BlueNord is an equal opportunity employer, committed
to fostering diversity, equity and inclusion in the
workplace. We welcome and embrace a variety of
skillsets and perspectives, and we value differences
between people of different cultural backgrounds,
ethnicity, age, gender, gender identification, gender
expression, sexual orientation, functional ability,
religion, and philosophies of life. These principles apply
to all employment practices at BlueNord, including
recruitment, hiring, compensation and benefits,
promotion, training and development, and leave of
absence.
The Norwegian Equality and Anti-Discrimination
Act stipulates that organisations must identify and
address challenges regarding equality and diversity in
the workplace before any incidents or discrimination
take place. The Act’s general activity duty applies to
BlueNord; in addition, we are implementing the working
method that the Act prescribes for specific activity duty:
Investigate, Analyse, Implement, and Evaluate results.
According to the Norwegian Equality and Anti-
Discrimination Act, organisations must proactively
identify and address challenges related to workplace
equality and diversity before any incidents or
Social continued
Extract of responses from BlueNord ‘s annual Employee Engagement and Working
Environment survey included in BlueNord DE&I index. Responses on a 7-point Likert scale
converted into a 0–100 index scale.
2024
2023
BlueNord DE&I Index 2023-2035
January 2023
79.1
January 2024
80.5
January 2025
75.3*
* includes CarbonCuts.
Extract from DEI survey (2023 and 2024)
January 2023
79.1
January 2024
80.5
January 2025
75.6*
* includes CarbonCuts.
Extract of responses from BlueNord ‘s annual Employee Engagement and Working Environment
survey included in BlueNord DE&I index. Responses on a 7-point Likert scale converted into a
0–100 index scale.
2024
2023
BlueNord Employee Engagement Index 2023-2025
60 BlueNord
Our people and values
continued
discrimination occur. The Act’s general activity
duty applies to BlueNord. Additionally, we are
following the Act’s prescribed working method
for specific activity duty: Investigate, Analyse,
Implement, and Evaluate results. Gender-
equalising terms for duration and payment of
parental leave are implemented as
part of BlueNord’s leave policies.
In 2024 we supplemented our recruitment
process by making normative psychometric
assessment tools, including job profiles, a
mandatory part of our recruitment process. The
job profile reduces the risk of gender, age and job
level biases in our recruitment process.
A set of questions to establish whether BlueNord
is considered a safe, inclusive and healthy
workplace with equal opportunities and zero
tolerance for harassment, are included in our
annual Employee Engagement and Working
Environment survey. The engagement survey
results indicate a slightly lower scoring overall,
however continues to be in the upper range of
the scale. Change and uncertainty influences
employees and this is very relevant particularly
working in the energy industry with ongoing
external factors that challenge the direction and
strategy of the business.
This year’s Employee Engagement Index stands
at 75.3, a testament to our employees’ continued
commitment and dedication. While this is slightly
lower than last year’s 80.5, it’s important to
recognise that we started from a high baseline
and remain firmly in the upper quartile of industry
benchmarks.
As part of our 2024 culture journey, we engaged
all staff in sessions and activities aimed at
understanding, recognising and embracing
diversity and its impact on our multinational teams
and organisation. This initiative has fostered a
sense of belonging and integration within the
BlueNord team. Additionally, it has heightened
our awareness of biases and blind spots, cultural
differences and cross-cultural communication.
As part of the performance management process
involving annual performance dialogue, mid-term
review and personal development planning,
performance evaluations were assessed and
calibrated jointly by leaders to avoid the risk and
impact of biases and discrimination.
Channels and procedures are in place for
reporting concerns about harassment of any
kind, whether experienced by or witnessed
by a staff member.
The appropriate handling of any potential
discrimination issue is outlined in the Company’s
harassment policy. This policy complements the
grievance process and the existing whistleblowing
procedure, along with its related integrity channel.
Training and skills development
Learning is part of our Company’s culture.
Continuous improvement and sharing knowledge
and ideas are vital for the business to thrive.
Employees at all levels are encouraged to
consider how they upgrade their knowledge and
skills, and development activities are included in
every personal development plan. As of 2025,
all training activity is to be recorded, to enable
KPIs to be set for competence management and
people development.
Experience and on-the-job training are a primary
source of learning. This is backed by competence
development and coaching, both individually and
in teams, together with mentoring, job-shadowing
and formal training courses and sessions.
Social continued
Participation in seminars and conferences is also
supported, to keep abreast of industry trends and
developments, update professional expertise and
to build and manage networks.
People can pursue new projects and activities
they are passionate about and through that
find development. This not only enhances their
personal growth but also drives innovation
and productivity within the business, leading to
overall success.
To ensure all employees adhere to governing
documents and business conduct standards at
BlueNord, our Code of Conduct is mandatory
for all employees to read and understand. This
training is a part of our onboarding process.
In November 2024, we conducted a group-wide
training session covering several topics within our
Code of Conduct. In 2024 we launched a Direct
Manager Network.
The network aims to empower all managers
to fulfil their roles and meet organisational
expectations. It aligns communication,
expectations and policies on various leadership
matters. The first meeting included a session on
handling whistleblowing and other warnings.
Every year, all employees at BlueNord are
required to attend a mandatory session on
handling insider information, facilitated by our
legal advisers. This is essential for protecting
BlueNord as a listed company, especially since
many of our permanent employees participate
in our Long-Term Incentive (LTI) programme and
have the opportunity to become shareholders.
Additionally, in 2025, we will introduce a
company-specific e-learning course on our
Code of Conduct, which will be offered alongside
our ongoing cyber security training campaigns
that also include an e-learning component.
In 2024, BlueNord employed three interns.
Two of these interns are working part-time in
Operations until they complete their degrees
in 2025 and 2026, respectively. A master’s
student is interning in Finance until their degree
is completed in 2025. Additionally, at the end of
2024, a master’s student in HR joined the People
& Capability department as an intern and began
their employment in January 2025.
61 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Social continued
Our people and values
continued
Remuneration
Remuneration for executives and employees
at BlueNord follows a clear and transparent
compensation policy. Our goal is to offer
competitive salaries and equal pay to attract
and retain individuals with the right capabilities
to execute our business strategies and ensure
the Company’s sustainable development.
Base salary, which rewards daily performance,
represents a significant component of an
individual’s total remuneration package.
The base salary is determined by the role’s
accountabilities, impact on business performance
and results, as well as the experience and
expertise required. This salary is established
based on internal, market and industry
benchmarking. Employees are employed under
local terms and conditions, with pensions and
other benefits aligned with local market standards.
Additionally, employees participate in short-term
incentive programmes and any equity-based
long-term incentive programmes applicable to
their positions.
For further information on executive
remuneration, please see the 2024
Executive Remuneration Report on
www.bluenord.com
Gender pay gap
As part of our commitment to transparency
and gender equality, we have calculated the
ratio of basic salary of women to men within our
organisation for full time employees. The average
basic salary for women is 93percent of the
average basic salary for men.
Ratio of highest to median annual
total remuneration
As part of our commitment to transparency and
equitable pay practices, we disclose the ratio of
the average executive annual remuneration to the
average employee annual remuneration within
our organisation. For 2024 this ratio is 2.8, an
increase of 26percent compared to 2023 (see
remuneration report for further details).
Workers in value chain
Beyond the DUC, our vendors are primarily
located in the Nordic and North European regions.
They offer consultancy, legal and financial
services, which are considered to involve minor
risk. However, when evaluating new investments
or tendering for goods and services, we conduct
due diligence and monitor both prospective and
existing partners wherever applicable.
We also strive to ensure that our operations
uphold fundamental human rights principles.
During tender processes and contract
conclusions, we verify that all parties adhere to
human rights, maintain sound working conditions
and employment terms, and comply with our
Code of Conduct. For more information see the
Governance section of this report from page 65.
Affected communities
Having obtained the license in mid-2024,
CarbonCuts has been meticulously planning the
exploration activities for Project Ruby. Although
several of these activities are temporary, they
involve the use of heavy equipment, which
can impact local communities, nature and
infrastructure. Significant efforts have been
made to minimise environmental impact, such
as avoiding sensitive areas, scheduling activities
to respect breeding seasons, considering
agricultural practices, reducing noise, and
planning traffic. CarbonCuts’ activities also
require land access for drill sites, facilities
and equipment, affecting local landowners.
Recognising potential conflicts, CarbonCuts aims
to carry out these operations with the utmost
respect for the affected people.
Community engagement
We are committed to respecting local values
and norms, performing our business activities
with integrity and in an ethical manner, in full
compliance with the laws and regulations of all
countries in which we operate.
Although BlueNord is not a large employer,
our operations as a partner in the DUC
significantly impact communities. The
economic multiplier effect of our engagement
with contractors, and the purchasing of
services and equipment, fosters broader
growth, employment and prosperity.
CarbonCuts is collaborating with various
stakeholders at both local and national levels
to maximise the value and implementation of
the Ruby project. A key effort has been the
meticulous planning of an extensive 3D seismic
research programme scheduled for early 2025,
covering over 200 km² and requiring the consent
of several hundred landowners. CarbonCuts has
developed informative materials and conducted
several meetings with key stakeholders, including
three with citizens. Additionally, CarbonCuts is in
continuous dialogue with multiple stakeholders
to align activities and identify synergies that
support sustainable business and infrastructure
development in the local community.
This is particularly crucial due to potential
interactions with the construction of the
Femern Tunnel, which will connect Denmark
with Germany, as well as the plans for
industrialising a large area near the proposed
location of Project Ruby’s surface facilities.
The economic multiplier effect of
our engagement with contractors,
and the purchasing of services
and equipment, fosters broader
growth, employment and
prosperity.”
62 BlueNord
Governance
Code of Conduct
Our Code of Conduct is the foundation for the
high standards of integrity within our business.
It applies to all Directors, officers, employees,
and subsidiaries in which BlueNord holds an
ownership interest, whether directly or indirectly.
Additionally, the Code of Conduct extends to
those acting on behalf of BlueNord.
We also expect our business partners, including
suppliers, subcontractors, joint venture partners,
and other contracting parties, to adhere to
standards consistent with this Code of Conduct.
Read our Code of Conduct at
www.bluenord.com
Systems and processes
BlueNord believes that effective corporate
governance is critical for ensuring accountability,
achieving strategic goals and generating value
for stakeholders.
The Company sets high standards of
performance and professionalism based on
honesty, integrity and fairness in its business
practices. BlueNord works together with partners
and contractors based on the same principles
of integrity and fairness, with zero tolerance for
bribery and corruption.
Read our Corporate Governance policy at
www.bluenord.com
As of 2024, we have established our Corporate
Governance framework to not only meet the
relevant legal requirements but also to uphold
the ethical standards that define our business
conduct. This framework is essential in ensuring
that we maintain the highest levels of integrity in
all that we do.
A key component of this framework is our
annual compliance programme, which includes
awareness initiatives and training activities
designed to support us in understanding, adhering
to, and embodying our Code of Conduct. These
activities are critical in fulfilling our commitments
under the Code of Conduct as well as complying
with legislative requirements. The BlueNord Code
of Conduct sets forth the behavioural standards we
expect from one another and that external parties
can expect from us.
Committee structure and
ESG responsibilities
In 2020, we established our ESG Committee to
support BlueNord’s commitment to ESG and
enhance our role in the energy transition.
In October 2024, we restructured the Board
committees, sharing ESG responsibilities
between the Audit Committee and the newly-
formed Technical Advisory Committee, while
maintaining the overall responsibility for ESG
strategy at the Board level.
The Chief Corporate Affairs Officer is
accountable for the reports directly to the
Chief Executive Officer, and is supported by
executive management, who are responsible
for risk and opportunity identification, and for
ensuring effective processes and mitigation
efforts, including ESG matters, within managers’
respective areas of responsibility.
Read our latest ESG Committee Report
at www.bluenord.com
Anti-bribery and corruption
BlueNord has zero tolerance regarding bribery
and corruption. The Company expects the
local management of each Group subsidiary to
promote a strong anti-corruption culture. Each
company shall make active efforts to prevent
undesirable conduct and ensure that their
employees can deal with challenging situations.
Read our Anti-Corruption and Bribery policy at
www.bluenord.com
Cyber security
BlueNord maintains an in-house IT department
with overall responsibility for IT operations,
security, governance, and strategy. Day-to-day
IT operations are outsourced to a provider with
experience in the oil and gas industry, supplying
infrastructure and general/industry-specific
applications. BlueNord’s IT environment also
incorporates third-party SaaS applications.
Although situated in relatively safe and politically
stable countries, BlueNord acknowledges
that we are not immune to the rising risk of
cyber attacks. To bolster our cyber security
capabilities, BlueNord has partnered with a
recognised firm of security experts, providing
cyber security management, including risk
assessments, endpoint security, round-the-
clock monitoring of security events, and incident
response. Procedures for handling cyber security
incidents have been established and form part
of the BlueNord Incident Management plan; zero
serious incidents were reported in 2024.
Governance
BlueNord is dedicated to
conducting our business in
a responsible, ethical and
lawful manner. We strive to
be a trusted partner for our
customers, shareholders,
colleagues, business partners,
and neighbours.
In this section:
Code of Conduct 62
Systems and processes 62
Committee structure and ESG
responsibilities 62
Anti-bribery and corruption 62
Cyber security 62
Business management system 63
Whistleblowing, harassment and grievance 63
Remuneration 63
63 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Governance
All staff are required to familiarise themselves
with our Incident Management plan. This plan is in
place to ensure personnel safety, environmental
protection, safe recovery, and business continuity
in the event of incidents, while also facilitating
necessary communication with our stakeholders.
Our focus on security covers both external
threats and internal risks. Internal measures
include restricting access to our offices,
conducting background checks and requiring ID
control for all new hires. IT security campaigns
are run on a continuous basis. All staff and
consultants working with our IT systems must
confirm in writing that they have read and will
adhere to BlueNord’s end-user IT instruction.
This document encompasses both IT security
requirements and acceptable-use policies. As
new technology is integrated, our instructions
and IT security policy will be updated accordingly.
The latest version, effective as of January 2025,
includes updates on the adoption of AI technology
and the Company’s stance on the use of public AI.
Business
management system
In collaboration with DNV, BlueNord has
developed and established a comprehensive
business management system for its oil and gas
operations. This system encompasses regulatory
requirements, process descriptions, policies, and
procedures. Additionally, a Corporate Governance
Management System framework has been
established and is set for further development.
Whistleblowing,
harassment and grievance
The BlueNord whistleblowing procedure applies
to all officers, Directors and employees of the
Company, whether temporary or permanent,
full-time or part-time, and regardless of their
location. Anyone doing business for or on
behalf of BlueNord must also comply with the
whistleblowing procedure. See our procedure at
www.bluenord.com/whistleblowing.
The procedure is mandatory reading for all new
employees during onboarding. We encourage
employees, hire-ins and external parties to raise
concerns and report suspected violations of
applicable laws and regulations to the channels
available, including our integrity channel. All
reports made in good faith will be dealt with
expeditiously, with persons reporting assured
of no adverse consequences for themselves.
Employees and consultants are encouraged to
speak up about all other issues of concern in the
workplace and are supported to seek advice if
they are in doubt. Our Harassment policy sets out
protected channels for notification in the event
that an individual has experienced behaviour that
falls short of the exemplary standards we expect
from all employees.
This policy also refers to the grievance process in
our management system, which can be initiated if
a concern or a complaint is seen as appropriate for
raising on a more formal basis. Correspondingly,
any appeal process, where applicable, will be
carried out according to local legislation.
Our integrity channel, which is accessible on our
corporate website and intranet, is managed by
PricewaterhouseCoopers (PwC).
Remuneration
Remuneration for executives and employees is
based on the following principles:
• A clear and transparent compensation policy.
• Compliance with regulatory requirements and
principles of good business conduct.
• Fair treatment of all employees.
• Sustainable pay linking remuneration to
performance, actual results and stakeholder
value creation.
BlueNord’s compensation policy includes
Short-Term Incentives (STI) and Long-Term
Incentives (LTI).
STI is a variable pay component, in the form of
an annual bonus programme that rewards high
performance based on the achievement of
operational and financial targets. Targets are set
annually and are tied to the execution of business
strategy, including environmental metrics which
for 2024 was related to emissions intensity, CCS
licence award, and reporting of scope 1, 2, and 3
emissions.
LTI includes our Performance Shares
programme. This uses a set of weighted KPIs
which measure share price performance on
both an absolute and relative basis (70 percent),
environmental objectives – such as emissions
reductions (20 percent) and tenure (10 percent).
For more information about Executive
Remuneration, see our Executive Remuneration
Report 2024 at www.bluenord.com.
The BlueNord Board
believes that good corporate
governance is an essential
building block for the
development of a successful
and sustainable business.”
64 BlueNord
65 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Maintaining a strong level of
governance through oversight
of the internal control framework
and risk management, covering
both financial and non-financial
information.
Read more about our Audit Committee on page 75
Chair’s Introduction 66
Leadership 67
Corporate Governance Report 69
Board Activities 75
Audit Committee Report 76
Remuneration Committee Report 77
ESG Committee Report 77
Nomination Committee Report 78
Directors’ Report 79
Reporting of Payments to Governments 83
Governance
Report
03
66 BlueNord
Chair’s Introduction
Good
corporate
governance
is key for a
successful,
sustainable
business
Sound governance
structures, clear roles and
responsibilities, and robust
accountability mechanisms
are instrumental in driving
business success and
resilience over the
long term.”
Glen Ole Rødland
Executive Chair
This section of the report demonstrates that
BlueNord maintains robust systems and
practices that support the Board, Company
and the Executive Team in making good
decisions for the future of the business,
in the interest of all stakeholders.
The stakeholders of the Company include
employees, contractors, suppliers,
partners, regulators, end users, and
others who interact with or are affected
by the environment in the vicinity of the
Company’s assets and operational areas.
The Board believes that good corporate
governance is an essential building block
for the development of a successful and
sustainable business. This belief is rooted in
the understanding that sound governance
structures, clear roles and responsibilities,
and robust accountability mechanisms are
instrumental in driving business success
and resilience over the long term.
To support the Board and as a framework
for the Company to adhere to, BlueNord
seeks to comply with the Norwegian
Code of Practice, which is available on
the Norwegian Corporate Governance
Committee website (www.nues.no).
The Company’s corporate values and Code
of Conduct also provide a framework on
which the Company acts and decisions
are made. The Code of Conduct describes
the Company’s ethical commitments and
requirements related to business practice
and personal behaviour.
BlueNord has a diverse Board, with the
relevant experience and skills to support
the Company, its objectives and best
practice. The composition of the Board is
such that it can operate independently of
any special interests. The Executive Team
also has extensive and relevant experience,
applicable to supporting best practice,
including technical, operational, financial,
financial market, and other wider corporate
skills. The CEO and other members of the
Executive Team report to the Board on
Company activities on a monthly basis.
The Board shall hold at least five ordinary
proceedings each year. During 2024
attendance at Board meetings is outlined
on page 74. Board meetings are based
around a formal agenda. The Board will
annually seek to define and evaluate the
Company’s objectives, main strategies
and risk profiles to ensure it continues to
create and deliver value. To ensure a more
detailed assessment of key areas of the
business, the Board was supported in 2024
by various committees, which included
an audit, nomination, remuneration and
ESG committee. As part of the Company’s
preparation for CSRD reporting, the
controls and responsibilities of the ESG
Committee were in Q4 2024 transferred to
the Audit Committee and the responsibility
for ESG strategy was transferred to the
Board. With the exception of the Nomination
Committee, the committees are made
up of members of the Board. Designated
representatives from the administration
participate in the respective committee
meetings as required, depending on their
relevant position and skills. In addition to
the established committees, an informal
Technical Advisory Committee with key
Board members and the CEO and COO
takes place on a regular basis and is
reported to the full Board.
Board committees meet regularly during
the year, and the attendance during 2024
is outlined on pages 75-78. Committee
meetings are held in person or online and
are based around a formal agenda, with the
salient points reported to the wider Board.
The Board aims to ensure there is the
opportunity for continuous and transparent
dialogue with shareholders. This includes
key decisions being put to shareholders
on an annual basis through an Annual
General Meeting (AGM). The meeting is
held virtually to encourage attendance and
participation, with the option to vote and
ask questions.
Glen Ole Rødland
Executive Chair
67 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Leadership
Board of Directors
Glen Ole Rødland Marianne Lie Tone Kristin Omsted Kristin Færøvik
Executive Chair Board member Board member Board member
Glen Ole Rødland is an experienced analyst and corporate
finance professional with 13 years in a leading Scandinavian
Investment Bank. He has managed investments for various
entities across the last 18 years, focusing on energy, shipping, oil
service, aquaculture, and commodities. He has served as Chair
of the Board of Directors in BlueNord since 14 May 2024.
Marianne Lie is the owner of Fajoma Consulting AS and is the
founder and Managing Director of Forum for Miljøteknologi
(FFM). She holds/has held several Board positions both in listed
and unlisted companies. Marianne has served as a member of the
Board of Directors in BlueNord since 26 May 2016, and was re-
elected at the AGM of 14 May 2024 for a period of two years.
Tone Kristin Omsted holds a BA Hons in Finance from the
University of Strathclyde. She has broad experience from
corporate finance and capital markets, and currently serves as
EVP IR and Corporate Finance in Public Property Invest ASA.
She has previously served as Head of Investor Relations in Entra
ASA and as an investment banking executive with SEB Enskilda.
She has also served on the Board of Directors of Panoro Energy
ASA. Tone has served as Member of the Board of Directors of
BlueNord since 26 May 2016, and was re-elected at the AGM of
14 May 2024 for a period of two years.
Kristin Færøvik holds an MSc in Petroleum Engineering from the
Norwegian University of Science and Technology in Trondheim.
A highly experienced energy executive, most recently serving
as Managing Director of Lundin Energy Norway, she has held
executive positions at Worley Rosenberg, Marathon Oil and
BP Norway. She is currently on the Board of Kongsberg Group,
Shearwater, Bunker Holding, and Edge Navigation. She has
served as a Member of the Board of Directors in BlueNord since
16 September 2024.
Robert J. McGuire Peter Coleman João Saraiva e Silva
Board member Board member Board member
Robert McGuire is the Executive Vice President and Head of the
Business Services Group at GDI Integrated Facilities Services
Group, a TSX-listed company. He has a 30-year global track
record as an adviser, investor and business leader, has served
on numerous Boards and has extensive experience in the
energy sector, having led the European energy businesses at
both Goldman Sachs and J.P.Morgan. He has a BA from Boston
College and an MBA from Harvard Business School. He was
elected as member of the Board of Directors of BlueNord at an
Extraordinary General Meeting held on 2 March 2020, and was
re-elected at the AGM of 14 May 2024 for a period of two years.
Peter Coleman joined Taconic, a shareholder in BlueNord, in April
2018 where he was a Director focusing on European credit, based
in their London office. Prior to joining Taconic, Peter was a Managing
Director on the European distressed debt team at SVP Global.
Previously, he was an Investment Director in distressed debt at Sisu
Capital and prior to this, he was a Director in the corporate finance
group and tax group at PricewaterhouseCoopers. Peter earned
a dual LL. B. and B.Com. from Victoria University in New Zealand
in 1996. He has served as member of the Board of Directors of
BlueNord since 19 May 2021, and was re-elected at the AGM of
25 April 2023 for a period of two years.
João Saraiva e Silva holds an Economics degree from Nova
School of Business and Economics and has more than 25 years
of experience in private equity and investment banking, with a
special focus on the energy sector. He’s currently a Partner with
Pamplona Capital Management, following senior positions with
investment firms such as Seatankers, Carlyle, L1, and Och-Ziff.
He started his career with Goldman Sachs in London. He has
served as a Member of the Board of Directors in BlueNord since
16 September 2024.
A A C
E A RR
Committee membership key
C
Chair
R
Remuneration Committee member
E
ESG Committee member
A
Audit Committee
68 BlueNord
Leadership continued
Executive Team
Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Corporate Affairs Officer
Euan has served as the Chief Executive Officer of BlueNord since
May 2022. He initially joined the Company as the Chief Financial
Officer in 2019 and additionally held the role of Acting Managing
Director from November 2021. He has a background of providing
strategic advice to a wide range of oil and gas companies on
acquisition, divestment and merger activity, as well as raising debt
and equity capital. Prior to joining BlueNord, Euan was a senior
member of the oil and gas advisory team at BMO Capital Markets,
having also focused on the Energy space while working with
Credit Suisse, RBC Capital Markets and Rothschild in London.
He has an MSc in Business and Accountancy from the University
of Edinburgh.
Jacqueline joined BlueNord in 2019 and was appointed Chief
Financial Officer in October 2023, after being a member of the
Executive Team since November 2022. She has over 20 years’
experience in finance and audit within the energy industry
in Australia, the UK and Denmark. Prior to joining BlueNord,
Jacqueline has held various roles, including leadership with Shell,
AGL Energy, EY, and PwC. She holds a Bachelor in Commerce
and Bachelor in Arts from Monash University in Australia
and is a member of the Chartered Accountants Australia and
New Zealand.
Miriam joined BlueNord in 2019 and was appointed COO from the
Asset Manager role which she held from January 2022. She has
nearly 30 years of experience in the upstream oil and gas industry,
and prior to BlueNord she held senior technical and management
positions within Shell and DONG Energy. Miriam has a MSc in Civil
Engineering and a PhD in Rock Mechanics from the Technical
University of Denmark (DTU).
Cathrine joined BlueNord in 2020 and holds the position of Chief
Corporate Affairs Officer. She previously had the role as Senior
Account Director in Hill+Knowlton, where she advised a wide
range of oil and gas and shipping companies. During her seven
years in Hill+Knowlton, she was a member of the Management
Team and was also leading the Financial Communications
practice. Prior to joining Hill+Knowlton, Cathrine worked with
institutional high-yield sales at Pareto Securities Inc. in New York
and Clarksons Platou Securities. She has a BSc in Business
Administration and Finance from Bocconi University.
Euan Shirlaw Miriam Jager Lykke Cathrine F. TorgersenJacqueline Lindmark Boye
69 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Corporate Governance Report
BlueNord ASA (the Company) is strongly committed to maintaining trust and enhancing value creation
for shareholders and society over time. The Company acts in a responsible and prudent manner, with
efficient decision-making, and clear communication between Executive Management, the Board of
Directors and shareholders of the Company as represented by the Annual General Meeting (AGM).
The Company’s framework for corporate governance is intended to decrease business risk, maximise
value and utilise the Company’s resources in an efficient and sustainable manner, for the benefit of
shareholders, employees and society at large. The Company seeks to comply with the Norwegian
Code of Practice for Corporate Governance, which is available on the Norwegian Corporate
Governance Committee website, www.nues.no.
The principal purpose of the Corporate Governance Code is to ensure: (i) that listed companies
implement corporate governance that clarifies the respective roles of shareholders, the Board
of Directors and Executive Management more comprehensively than that which is required by
legislation; and (ii) effective management and control over activities with the aim of securing the
greatest possible value creation over time in the best interests of companies, shareholders,
employees, and other parties concerned.
The Company will, due to the listing of its shares on Oslo Børs, be subject to reporting requirements for
corporate governance under the Accounting Act section 3-3b, as well as the Oslo Børs Rule Book II
section 4.4. The Board of Directors will include a report on the Company’s corporate governance in each
Annual Report, including an explanation of any deviations from the Corporate Governance Code. The
corporate governance framework of the Company is subject to annual review by the Board of Directors.
According to the Company’s own evaluation, the Company deviates from the Corporate Governance
Code on the following points:
• Item 4: The Board of Directors of the Company has been, and is expected to be, provided with
authorisations to acquire own shares and issue new shares. Not all such authorisations have
separate and specific purposes for each authorisation, as the purposes of the authorisations shall
be explained in the notices to the general meetings adopting the authorisations.
• Item 14: Due to the unpredictable nature of takeover situations the Company has decided not to
implement detailed guidelines on takeover situations. In the event a takeover were to occur, the
Board of Directors will consider the relevant recommendations in the Corporate Governance Code
and whether the concrete situation entails that the recommendations in the Corporate Governance
Code can be complied with or not.
Governance operating model – organisational design and committee structure
Shareholders
Nomination Committee
Audit Committee
Remuneration Committee
ESG Committee
(incorporated into Audit Committee
from Nov-24)
General Meeting
Board of Directors
CEO
Executive Team
For further information on the committees’
work, see their reports on pages 75 to 78.
70 BlueNord
Corporate Governance Report continued
1. Corporate governance implementation and reporting
The Board of BlueNord is responsible for compliance with corporate governance standards.
BlueNord is a Norwegian public limited liability company (ASA), listed on the Oslo stock exchange and
established under Norwegian law.
In accordance with the Norwegian Accounting Act, section 3-3b, BlueNord includes a description of
principles for corporate governance as part of the Board of Directors’ Report in the Annual Report.
The Company will seek to comply with the Corporate Governance Code.
The Company’s strategy is to continue its value creation, to replace and maximise recovery of proven
reserves and resources, and to continue to explore new opportunities in and above the ground.
2. Business
The Company is a publicly-owned oil, gas and offshore industry company with a strategic focus on
value creation through increased recovery, enabled by a competent organisation with a long-term
view on reservoir management and the capability to invest in and leverage new technology and
business areas including carbon capture, utilisation and storage (CCUS).
On an annual basis the Board defines and evaluates the Company’s objectives, strategies and risk profiles
for the Company’s business activities to ensure that the Company creates value for shareholders.
The Company integrates considerations related to its stakeholders, as well as social, environmental
and sustainability considerations, into its value creation, and shall achieve its objectives in accordance
with the Company’s Code of Conduct.
The Company’s business is defined in the following manner in the Company’s Articles of Association,
section 3: The object of the Company is direct and indirect ownership of and participation in
companies and enterprises within exploration, production and sale related to oil and gas, and other
activities related thereto.
3. Equity and dividends
3.1 Equity
As of 31 December 2024 the Company’s consolidated equity was USD 695.9 million, which is
equivalent to approximately 20 percent of total assets. The Company’s equity level and financial
strength shall be considered in light of its objectives, strategy and risk profile.
3.2 Distribution policy
The Board seeks to have a disciplined approach to capital allocation. This is maintained through
the Company’s Distribution policy established in February 2024. The policy balances shareholder
returns with long-term value creation. With Tyra operations starting to generate substantial free cash
flow, the Company can prioritise shareholder returns in the near-term, make measured and strategic
reinvestments, and maintain a conservative capital structure. BlueNord intends to pay distributions on
a quarterly basis.
The AGM in May 2024 authorised the Board to approve the distribution of dividends based on the
approved annual accounts for 2023, to facilitate quarterly dividend payments. The Company has not
paid any dividends to date, whether in cash or in kind.
3.3 Share capital increases and issuance of shares
At the AGM held on 14 May 2024 the Board of Directors was authorised to increase the Company’s
share capital by up to NOK 1,414,669 (this represents 2,620,584 shares at a nominal value of
NOK 0.5398295) valid until the AGM in 2025, but in no event later than 30 June 2025.
Outstanding shares as of 8 April 2025 were 26,498,640, which is an increase of 292,791 shares
compared to year end 2023. During the year 278,347 shares were issued following exercise of options
and 14,444 shares were issued following award of performance shares under the Long-Term Incentive
(LTI) programme.
3.4 Purchase of own shares
The Board of Directors of the Company has been authorised to acquire and dispose of own shares
with a total nominal amount up to NOK 4,244,007 (this represents 7,861,754 shares), valid until the
AGM in 2025, and in any event no later than 30 June 2025. The authorisation can be used in relation to
incentive schemes for employees and/or Directors of the Group, as consideration in connection with
acquisition of businesses and/or for general corporate purposes.
As of 8 April 2025 the Company does not hold any of its own shares.
71 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Corporate Governance Report continued
4. Equal treatment of shareholders and transactions with related parties
4.1 Class of shares
The Company has one class of shares. All shares carry equal rights in the Company and the Articles
of Association do not provide for any restrictions, or rights of first refusal, on transfer of shares. Share
transfers are not subject to approval by the Board of Directors.
4.2 Pre-emption rights to subscribe
According to the Norwegian Public Limited Liability Companies Act section 10-4, the Company’s
shareholders have pre-emption rights in share offerings against cash contribution. Such pre-emption
rights may, however, be set aside, either by the general meeting or by the Board of Directors if the
general meeting has granted a Board authorisation which allows for this. Any resolution to set aside
pre-emption rights will be justified by the common interests of the Company and the shareholders, and
such justification will be publicly disclosed through a stock exchange notice from the Company.
4.3 Trading in own shares
The Board of Directors will aim to ensure that all transactions pursuant to any share buyback
programme will be carried out either through the trading system at Oslo Børs or at prevailing prices
at Oslo Børs and in accordance with the Market Abuse Regulation (MAR). In the event of such
a programme, the Board of Directors will take the Company’s and shareholders’ interests into
consideration and aim to maintain transparency and equal treatment of all shareholders. If there is
limited liquidity in the Company’s shares, the Company shall consider other ways to ensure equal
treatment of all shareholders.
4.4 Transactions with close associates
The Board of Directors aims to ensure that any non-immaterial future transactions between the
Company and shareholders, a shareholder’s parent company, members of the Board of Directors,
executive personnel or close associates of any such parties are entered into on arm’s length terms.
For any such transactions that do not require approval by a general meeting pursuant to the
Norwegian Public Limited Liability Companies Act, the Board of Directors will, on a case-by-case
basis, assess whether a fairness opinion from an independent third party should be obtained.
4.5 Guidelines for Directors and Executive Management
The Board of Directors has adopted rules of procedure for the Board of Directors which, inter alia,
include guidelines for notification by members of the Board of Directors and Executive Management
if they have any material direct or indirect interest in any transaction entered into by the Company.
5. Freely negotiable shares
The shares of the Company are freely transferable. There are no restrictions on transferability of
shares pursuant to the Articles of Association.
6. General meetings
6.1 Notification
The notice for a general meeting, with reference to or attached support information on the resolutions
to be considered at the general meeting, shall as a principal rule be sent to shareholders no later than
21 days prior to the date of the general meeting.
The Board of Directors will seek to ensure that the resolutions and supporting information are
sufficiently detailed and comprehensive to allow shareholders to form a view on all matters to be
considered at the meeting. The notice and support information, as well as a proxy voting form,
will normally be made available no later than 21 days prior to the date of the general meeting on
the Company’s website, www.bluenord.com/general-meetings.
6.2 Participation and execution
To the extent deemed appropriate or necessary by the Board of Directors, the Board of Directors will
seek to arrange for the general meeting to vote separately on each candidate nominated for election to
the Company’s corporate bodies.
The Board of Directors and the Nomination Committee shall, as a general rule, be present at general
meetings. The auditor will attend the ordinary general meeting and any extraordinary general meetings
to the extent required by the agenda items or other relevant circumstances. The Board of Directors will
seek to ensure that an independent chair is appointed by the general meeting if considered necessary
based on the agenda items or other relevant circumstances.
The Company will aim to prepare and facilitate the use of proxy forms which allow separate voting
instructions to be given for each item on the agenda and to nominate a person who will be available to
vote on behalf of shareholders as their proxy. The Board of Directors may decide that shareholders
may submit their votes in writing, including by use of electronic communication, in a period prior to the
general meeting. The Board of Directors should seek to facilitate such advance voting.
7. Nomination Committee
The Nomination Committee is provided for and governed by the Articles of Association, in addition
to instructions for the Nomination Committee. For more information relating to the Nomination
Committee, please see the Nomination Committee Report section of this report.
72 BlueNord
Corporate Governance Report continued
8. Board of Directors: composition and independence
Pursuant to the Articles of Association, section 5, the Company’s Board of Directors shall consist of
three to seven members, which are the shareholders’ elected members in accordance with a decision
by the AGM.
The composition of the Board of Directors should ensure that the Board can attend to the common
interests of all shareholders and meet the Company’s need for expertise, capacity and diversity.
Attention should be paid to ensuring that the Board can function effectively as a collegiate body.
The composition of the Board of Directors should ensure that it can operate independently of
any special interests. The majority of the shareholder-elected members of the Board should be
independent of the Company’s executive personnel and material business contacts. At least two of
the members of the Board elected by shareholders should be independent of the Company’s main
shareholder(s), the executive personnel and material business contacts.
The Board of Directors should not include executive personnel. If the Board does include executive
personnel, the Company should provide an explanation for this and implement consequential
adjustments to the organisation of the work of the Board, including the use of Board committees to
help ensure more independent preparation of matters for discussion by the Board.
The Chair of the Board of Directors should be elected by the AGM.
The term of office for members of the Board of Directors should not be longer than two years at a
time. The Board members can be elected for a shorter term by the AGM. The Annual Report should
provide information to illustrate the expertise of the members of the Board of Directors and information
on their record of attendance at Board meetings. In addition, the Annual Report should identify which
members are considered to be independent.
9. The work of the Board of Directors
9.1 Rules of procedures for the Board of Directors
The Board of Directors is responsible for the overall management of the Company and shall supervise
the Company’s business and the Company’s activities in general.
The Norwegian Public Limited Liability Companies Act regulates the duties and procedures of the
Board of Directors. In addition, the Board of Directors has adopted supplementary rules of procedures,
which provide further regulation on, inter alia, the duties of the Board of Directors and the Chief
Executive Officer (CEO), the division of work between the Board of Directors and the CEO, the annual
plan for the Board of Directors, notices of Board proceedings, administrative procedures, minutes,
Board committees, transactions between the Company and the shareholders, and matters
of confidentiality.
The Board shall produce an annual plan for its work, with a particular emphasis on objectives, strategy
and implementation. The CEO shall at least once a month, by attendance or in writing, inform the Board
of Directors about the Company’s activities, position and profit trend.
The Board of Directors’ consideration of material matters in which the Chair of the Board is, or
has been, personally involved, shall be chaired by some other member of the Board. The Board of
Directors shall evaluate its performance and expertise annually and make the evaluation available to
the Nomination Committee.
9.2 Audit Committee
The Company’s Audit Committee is governed by the Norwegian Public Limited Liability Companies
Act and a separate instruction adopted by the Board of Directors. To read the latest Audit Committee
Report, please see the relevant section of this report.
9.3 Remuneration Committee
The Company’s Remuneration Committee is governed by an instruction adopted by the Board of
Directors. To read the latest Remuneration Committee Report, please see the relevant section of
this report.
73 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Corporate Governance Report continued
10. Risk management and internal control
Risk management and internal control are given high priority by the Board of Directors, which ensures
that adequate systems for risk management and internal control are in place. For more information
about how risks are managed, please see the risk section of this report.
11. Remuneration of the Board of Directors
The remuneration of the Board of Directors shall be decided by the AGM, and reflects the Board of
Directors’ responsibilities, expertise, time commitment, and the complexity of the Company’s activities.
For more detail on the Board’s remuneration please refer to the Executive Remuneration Report 2024
at www.bluenord.com
12. Remuneration of the Executive Management
The Board of Directors has, in accordance with the Norwegian Public Limited Liability Companies Act
section 6-16a, prepared a policy for Executive Management remuneration. The policy includes the
main principles applied in determining the salary and other remuneration of executives as further set
out in the regulation on policies and reports on remuneration for Executive Management.
The Company shall annually prepare a report on remuneration to Executive Management in
accordance with the Norwegian Public Limited Liability Companies Act section 6-16b. For more detail
please refer to the guidelines on executive remuneration adopted by the AGM on 19 May 2022 at
www.bluenord.com.
13. Information and communications
13.1 General
The Board of Directors has adopted a separate manual on disclosure of information, which sets forth
the Company’s disclosure obligations and procedures. The Board of Directors will seek to ensure that
market participants receive correct, clear, relevant, and up-to-date information in a timely manner,
taking into account the requirement for equal treatment of all participants in the securities market.
The Company will, each year, publish a financial calendar, providing an overview of the dates for major
events such as its ordinary general meeting and publication of interim reports.
13.2 Information to shareholders
The Company shall have procedures for establishing discussions with shareholders to enable the
Board to develop a balanced understanding of the circumstances and focus of shareholders. Such
discussions shall be carried out in compliance with the provisions of applicable laws and regulations.
All information distributed to the Company’s shareholders will be published on the Company’s website
at the same time as it is sent to shareholders, at the latest.
14. Takeovers
In the event that the Company becomes the subject of a takeover bid, the Board of Directors shall seek
to ensure that the Company’s shareholders are treated equally and that the Company’s activities are
not unnecessarily interrupted. The Board of Directors shall also ensure that the shareholders have
sufficient information and time to assess the offer.
There are no defence mechanisms against takeover bids in the Company’s Articles of Association,
nor have other measures been implemented to specifically hinder the acquisition of shares in the
Company. The Board of Directors has not established written guiding principles for how it will act in
the event of a takeover bid, as such situations are normally characterised by concrete and one-off
circumstances, which make guidelines challenging to prepare.
In the event a takeover were to occur, the Board of Directors will consider the relevant
recommendations in the Corporate Governance Code and whether the concrete situation entails
that the recommendations in the Corporate Governance Code can be complied with or not.
15. Auditor
The Board of Directors will require the Company’s auditor to annually present to the Audit Committee
a review of the Company’s internal control procedures, including identified weaknesses and proposals
for improvement, as well as the main features of the plan for the audit of the Company.
Furthermore, the Board of Directors will require the auditor to participate in meetings of the Board of
Directors that deal with the annual accounts. At least one Board meeting with the auditor shall be held
each year in which no member of the Executive Management is present.
The Board of Directors’ Audit Committee shall review and monitor the independence of the
Company’s auditor, including in particular the extent to which services other than auditing provided by
the auditor or the audit firm represents a threat to the independence of the auditor.
The remuneration to the auditor for statutory audit will be approved by the ordinary general meeting.
The Board of Directors should report to the general meeting on details of fees for audit work and any
fees for other specific assignments.
74 BlueNord
Name Board Meeting attendance
Glen Ole Rødland (Chair)        
Marianne Lie            
Tone Kristin Omsted            
Robert McGuire            
Peter Coleman        
Kristin Færøvik   
João Saraiva e Silva    
Riulf Rustad (prev. Chair)    
Colette Cohen (prev. member)  
Jan Lernout (prev. member)   
Board activities
The Board oversees the Company’s overall management, with key responsibilities including
setting strategic priorities and managing risk. This involves determining appropriate risk
levels and establishing and monitoring the internal control framework. While day-to-day
operations are delegated to the CEO and Executive Team, the Board retains final authority
over all decisions.
The Board conducted twelve meetings in 2024 and two
additional meetings in early 2025 before the release of Q4
results and this Annual Report and Accounts.
During 2024 thirteen written resolutions were passed.
Six of these resolutions were related to share capital
increases through share issuance to option holders.
The remaining resolutions covered the approval of the
2024 budget, including Tyra CC4 request, approval
of extraordinary general meeting notice, approval
of CarbonCuts licence application, and various
recommendations from the Remuneration Committee.
Key areas addressed during Board meetings in 2024:
• Strategy and operations
The Board focused on strategic direction, priorities
and operational performance, with particular attention
to the Tyra redevelopment project and health, safety,
security and environment (HSSE) matters.
• Financial management
Key decisions included reviewing the distribution policy,
regular monitoring of capital structure and assessing
short and medium-term liquidity, approving refinancing
actions, including restructuring of the reserves
based lending facility (RBL), and managing bond
arrangements through full redemption of
BNOR14 and BNOR16 issuance. The 2025 budget
was also approved.
• Risk and governance
The Board conducted its annual review of the
Company’s top ten risks, evaluated the Executive
Management, approved incentive programmes,
reviewed committee performance, and updated
governance documents.
Board Activities
75 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Audit Committee Report
Meeting summary
During 2024/25 the Audit Committee held five meetings.
Key areas of focus included:
• Financial performance, tax matters and compliance.
• Policy documentation and liquidity forecasts.
• Major financial transactions, including reserves-based lending
(RBL) refinancing, BNOR14 redemption and BNOR16 issuance.
• Internal control systems and materiality assessments.
• CSRD reporting developments.
• Quarterly reviews of the enterprise risk matrix.
• Financial reporting risks and distribution policy.
The Committee regularly monitored impairment triggers and
evaluated accounting and tax implications throughout the year.
BlueNord has established an Audit
Committee with formally delegated
duties and responsibilities within
written terms of reference.
Work of the Audit Committee
• Support the Board’s responsibilities relating to
the integrity of financial reporting and the financial
reporting process.
• Evaluate risk management of financial reporting and
monitor systems for internal control.
• Review external auditors’ independence and
objectivity and review the effectiveness and quality
of the annual audit plan.
• Develop and implement policy for any engagement
of external auditors to supply non-audit services.
• Incorporate review and oversight of internal control
systems for non-financial information notably as it
relates to sustainability reporting going forward.
Marianne Lie
Audit Committee Chair
Audit Committee composition:
• Marianne Lie (Chair)
• Tone Omsted
• Peter Coleman
All members are independent of the Company’s Executive
Management and all three committee members sit on the Board of
Directors of BlueNord ASA.
Due to the committee restructuring which took place at the end of
October 2024, followed by the Company’s preparation for CSRD
reporting, several duties and responsibilities of the ESG Committee
were transferred to the Audit Committee, while some others were
placed with the Technical Committee and directly with the Board.
Name Committee meeting attendance
Marianne Lie (Chair)     
Tone Omsted     
Peter Coleman 
Activities during the year
The committee held five scheduled meetings during 2024. Two
further meetings have been held in 2025 prior to the publication
of Q4 results and this Annual Report and Accounts. In addition to
the members of the committee listed on this page, meetings of the
Committee were also attended by the CFO and the Head of Group
Reporting. The Company’s auditor works closely with the Audit
Committee and attended all meetings during the year.
The Committee thoroughly reviews all interim and annual reports
before they are reviewed by the Board of Directors and then
published. Quarterly discussions address identified risks and
their impact on financial reporting, along with management
compliance updates.
The Audit Committee conducts quarterly reviews of tax and
impairment trigger memorandums, along with monitoring new
accounting effects and issues. Before year end closing the
Committee evaluates key assumptions and accounting principles
while addressing early warning signals and critical issues.
Throughout the year the Audit Committee collaborated with
executive management and auditors to strengthen existing
partnerships and enhance internal controls for material financial
reporting processes.
In 2024 Audit Committee and ESG Committee members
participated in a joint training session conducted by the KPMG
sustainability team. The training focused on new CSRD reporting
requirements and the related responsibilities of the Board and Audit
Committee. Additional training sessions are planned for 2025. The
Company has established an internal steering committee that will
collaborate with the Audit Committee on CSRD-related initiatives.
76 BlueNord
Remuneration Committee Report
The Remuneration Committee is a
preparatory and advisory committee
which supports the Board in matters of
Executive Management compensation
according to the delegated duties and
responsibilities within its written terms
of reference.
Role of the Remuneration Committee
• Prepare an annual Executive Remuneration
Report and, at least annually, review and
recommend any amendments to the guidelines
for executive remuneration, to be proposed by
the Board for adoption by the AGM.
• Monitor, evaluate and approve the application of
the guidelines for the remuneration provided to
Executive Management.
• Request information and assistance from
the Executive Management which is
deemed relevant for the Remuneration
Committee to carry out its tasks.
• Seek advice and recommendations
from sources outside of the Company
if relevant and subject to appropriate
confidentiality.
Robert J. McGuire
Remuneration Committee Chair
Remuneration Committee composition:
The composition of the Remuneration Committee has changed
during 2024. Currently the committee consists of the following
Board members:
• Robert J. McGuire (Chair)
• João Saraiva e Silva
These members are independent of the Company’s Executive
Management, and both committee members sit on the Board of
Directors of BlueNord ASA (since March 2020 and September
2024 respectively).
Name Committee meeting attendance
Robert J. McGuire (Chair) 
João Saraiva e Silva 
Marianne Lie (prev. Chair)   
Peter Coleman (prev. member) 
Jan Lernout (prev. member)  
2024 meeting summary
The Remuneration Committee convened for four scheduled
meetings in 2024, with the CEO and Executive Vice President
(EVP) People and Capability invited to attend where relevant.
The executive remuneration guidelines were reviewed, with no
changes made from those approved by the AGM in May 2022.
The audited Executive Remuneration Report, which was prepared
in line with the Public Limited Liability Companies Act § 6-16b and
best practice in remuneration disclosure, was endorsed.
The committee reviewed and recommended annual salary
increases for eligible executives and employees in 2024.
Additionally it endorsed the employment terms for the new
Chief Operating Officer (appointed by the CEO in June 2024)
and the settlement terms for the departing executive.
The committee reviewed and endorsed the 2024 key performance
indicators (KPIs) for the Company’s Short-Term Incentive (STI)
programme. It also examined and endorsed the programme’s 2023
KPI achievement and the proposed annual performance bonus
payment for executives and employees.
The committee reviewed and endorsed the annual KPI
performance of the 2022 Long-Term Incentive (LTI) programme
and recommended the second award of the programme, which
requires annual vesting. Correspondingly, the committee reviewed
and endorsed KPI results for the first accrual period of the 2023 LTI
programme’s three-year cliff vesting period. Grant allocation and
KPIs for the 2024 LTI programme were reviewed and endorsed by
the Committee. Upon the Board’s approval the grant took place on
15 April 2024.
In Q4 2024, as part of the complete committee membership
change, the previous Chair’s evaluation of the Committee’s work and
collaboration with administration was shared with the new members.
Executive Remuneration Report 2024
For more information about executive remuneration please see the
full report at www.bluenord.com/reports-and-presentations.
77 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
ESG Committee Report
The Company’s ESG Committee is a
preparatory and advisory committee
to the Board, established in 2020 to
support our commitment to ESG and
to evolve the Company’s role as a
contributor to the energy transition.
The ESG Committee shall
• Support the development of the Company’s
overall environmental, social and governance
strategy.
• Oversee the Company’s ESG activities
and assess whether any developments or
investments are compatible with, and supportive
of, the strategic objectives of the Company.
• Ensure that the Board is informed on material
relevant topics or events related to the
Company’s work on ESG.
• Review the Company’s ability to address and
mitigate risks related to ESG.
• Ensure that the Company strives for
transparency and high standards
in its ESG reporting.
Activities during the year
The committee held two scheduled meetings during 2024.
In addition to the members of the Committee listed, meetings of the
Committee were also attended by the CEO, the Chief Corporate
Affairs Officer and, by invitation, the CFO or other members of the
leadership team.
The Committee has worked closely with key members of the
Executive Team during 2024 to develop the ESG strategy of
the Company, to identify material topics and to assess risks and
opportunities that are relevant to the Company. The Committee
has also been involved in improvements of the quality and
transparency of the ESG reporting of BlueNord.
In addition, the Committee was involved in developments and
recommendations made to the Board in relation to CarbonCuts
and the licence application for onshore CO
2
storage in Denmark,
completed in January 2024.
The ESG Committee also had a joint session with the Audit
Committee related to the CSRD requirements and the implications
for the company.
Following the Committee’s work during 2024 the Company has
further progressed its preparations to align itself to report against
the new ESRS, which was expected from 2025.
This work will continue with the Audit Committee during 2025 with
responsibility for ESG strategy resting with the Board.
The ESG Committee consisted of the following
Board members:
• Colette Cohen (previous Chair)
• Robert McGuire (Chair)
• Tone Kristin Omsted
All members are independent of the Company’s Executive
Management and all Committee members sit on the Board of
Directors of BlueNord ASA. As of 1 November 2024 the ESG
Committee was merged with the Audit Committee with specific
responsibility for oversight of risk management and internal
controls moving to the Audit Committee and responsibility for ESG
strategy being directly with the Board. The report includes the ESG
Committee’s work up to 1 November 2024.
Name
Committee
meeting
attendance
Robert McGuire (Chair) from 11 Apr to 1 Nov
1
 
Colette Cohen (prev. Chair) 
Tone Kristin Omsted 
1) Robert McGuire was a member of the ESG Committee until 14 May and from 14 May
to 1 November he held the position as Chair.
78 BlueNord
Nomination Committee Report
According to the Articles of
Association §6 the Nomination
Committee shall consist of three
members. The term of office shall
be two years unless the AGM
determines that the term shall
be shorter.
Nomination Committee prepares a motion for
the AGM relating to:
• Election of members of the Board of Directors
and the Chair of the Board of Directors.
• Election of members of the Nomination
Committee and the Chair of the Committee.
• The remuneration of the Directors and the
members of the Nomination Committee.
• Any amendments to the Nomination
Committee’s mandate and charter.
Richard Sjøqvist
Nomination
Committee Chair
Work of the Nomination Committee
The Chair of the Nomination Committee is responsible for the
committee’s work and the calling of meetings. However, any
member can request a committee meeting. The Nomination
Committee regularly reviews the structure and composition
of the Board, including the knowledge, skills, experience, and
diversity of the Board.
It also ensures, through regular review, that the needs of the
Company are reflected in the Board’s composition, and gives
full consideration to succession planning for Board members.
The Nomination Committee also ensures that there is a formal
and transparent procedure for the appointment of new Directors
to the Board.
The Nomination Committee has contact with the
Company’s shareholders, Board of Directors and the
Company’s executive personnel. All BlueNord shareholders
are able to propose candidates. If a candidate is proposed,
the Nomination Committee will consider the experience,
competence and capacity of each candidate. The Nomination
Committee’s proposal for the 2025 AGM will be made available at
www.bluenord.com/general-meetings.
Activities during the period
The Committee has taken note of paragraph five of the Articles of
Association in which it is stated that the Board of Directors shall
have from three to seven shareholder-elected members and that
these Board members are elected to a two-year period unless the
general meeting decides upon a shorter term.
Nomination committee composition:
• Richard Sjøqvist (Chair)
• Kristian Utkilen
• Annette Malm Justad
Name Committee meeting attendance
Richard Sjøqvist (Chair)         
Kristian Utkilen         
Annette Malm Justad         
79 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Directors’ Report
The Tyra II field start-up
will lead to a step change
in BlueNord future
performance.”
Glen Ole Rødland
Chair
BlueNord ASA (BlueNord, ‘the Company’)
is a Norwegian company listed on the
Oslo Stock Exchange. The Company was
established in 2005 and has a strategic
focus on value creation through increased
recovery of hydrocarbons, enabled by a
competent organisation with a long-term
view on reservoir management and
the capability to invest in and leverage
new technology.
Following the acquisition of Shell’s Danish
upstream assets in 2019, BlueNord ASA
holds a 36.8 percent non-operated interest
in the DUC and is the second largest oil
and gas producer in Denmark. The DUC
is a joint venture between TotalEnergies
(43.2 percent), BlueNord (36.8 percent)
and Nordsøfonden (20.0 percent), and
comprises four hubs (Halfdan, Tyra, Gorm,
and Dan) and eleven producing fields. It
is operated by TotalEnergies, which has
extensive offshore experience in the region
and worldwide.
Since the acquisition in 2019, BlueNord
has built a meaningful presence in Denmark
and established good relationships with its
partners TotalEnergies and Nordsøfonden,
as well as other stakeholders including
the DEA.
Production assets and field
developments
In 2024, the Company achieved production
from the Halfdan, Dan and Gorm hubs
with an annual average of 24.1 mboepd,
supplemented by 0.9 mboepd from the
Tyra Hub, resulting in an overall operational
efficiency of approximately 90.5 percent.
Well optimisation and infill drilling
maximised production and minimised
natural decline for the year.
Production from Tyra II started in early
2024, reaching full technical capacity by
November. First gas arrived at the Nybro
facility on 28 March 2024. Transformer
issues delayed the ramp-up, limiting
production to the Harald field until November.
By year-end, about half of the Tyra hub wells
were open, full production capacity on Tyra II
is expected by early 2025.
The annual revision of reserves, performed
by an independent organisation (ERCE)
in accordance with SPE PRMS 2018
standards, resulted in total 2P reserves at
year end 2024 of 194 mmboe.
Capital structure
The capital structure has been reset and
optimised during 2024. A summary of the
facilities in place and activities for the year
ended 31 December 2024 is outlined below.
Convertible bond (BNOR15)
USD 233.1 million convertible bond with a
five-year tenor and a conversion to equity or
cash settlement after three years. BNOR15
has PIK interest with additional bonds at a
coupon rate of 8.0 percent.
BlueNord may alternatively, at its own
discretion, pay cash interest of 6.0 percent.
Should the instrument be in place beyond
the three-year conversion period, the
interest rate of BNOR15 will be reduced to
0.0 percent for the remaining period subject
to approval from RBL lenders.
Reserve-based lending facility
The BlueNord Reserve-Based Lending
(RBL) facility is a senior secured, first lien
RBL with a tenor of 5.5 years, and a total
facility amount of USD 1.4 billion, comprising
a cash tranche of up to USD 1.15 billion
and a letter of credit tranche of up to USD
250.0 million. This facility was amended
and restated in the second quarter of 2024,
resulting in an increase of USD 300 million
in the total facility amount.
At the end of 2024, USD 880.0 million was
drawn under the RBL, with an additional
USD 100.0 million Letter of Credit
outstanding. Interest is charged on debt
drawings based on the secured overnight
financing rate (SOFR) and a margin of 4.0
percent per annum. In June 2024, BlueNord
made a drawdown of USD 30.0 million.
Senior unsecured note (BNOR14)
The Company issued in 2019 a USD 175.0
million senior unsecured note with a coupon
rate of 9.0percent, maturing in June 2026.
On 14 June, the Company exercised the call
option to redeem all of BNOR14 at 110.00131
percentage (plus accrued unpaid interest
on the redeemed amount). The note was
fully redeemed on 2 July 2024.
Senior unsecured note (BNOR16)
On July 2, 2024, a new senior unsecured
bond issue with a maturity of five years
and a principal amount of USD 300 million
was placed and settled. The bond carries
an interest rate of 9.5 percent per annum,
payable semi-annually. The proceeds from
the BNOR16 bond issuance have been
utilised to redeem the BNOR14 bond and
for other general corporate purposes.
Directors’
Report
80 BlueNord
Directors’ Report continued
Group financial results for 2024
The consolidated financial statements of BlueNord have been prepared in accordance with IFRS and
interpretations from the IFRS interpretation committee (IFRIC), as endorsed by the EU.
See the section on the Financial Review, on pages 21 to 23.
Risk mitigation
The Company actively seeks to reduce the risk it is exposed to regarding fluctuating commodity prices
through the establishment of hedging arrangements.
Currently all the Company’s commodity price hedging arrangements are executed solely in the market
through forward contracts. At the time of this report, the Company had purchased the following:
Oil Q1-25 Q2-25 Q3-25 Q4-25 Q1-26
Days 90 91 92 92 90
Volumes (bbl) 1,364,001 1,214,001 1,125,000 1,200,000 825,000
Price
(USD/bbl) 74.6 71.9 73.6 73.0 70.9
Equiv. daily
production
(mbblpd) 15.2 13.3 12.2 13.0 9.2
Oil Q2-26 Q3-26 Q4-26 Q1-27
Days 91 92 92 90
Volumes (bbl) 825,000 525,000 525,000 -
Price
(USD/bbl) 70.8 67. 3 67.3 -
Equiv. daily
production
(mbblpd) 9.1 5.7 5.7 0.0
Gas Q1-25 Q2-25 Q3-25 Q4-25 Q1-26
Days 90 91 92 92 90
Volumes (MWh) 1,135,000 2,145,000 2,309,997 1,980,000 1,980,000
Price
(EUR/MWh) 45.3 39.8 39.8 39.1 39.0
Equiv. daily
production
(mboepd) 7.3 13.6 14.5 12.4 12.7
Gas Q2-26 Q3-26 Q4-26 Q1-27
Days 91 92 92 90
Volumes (MWh) 1,290,000 1,290,000 1,095,000 1,095,000
Price
(EUR/MWh) 33.2 33.1 34.1 34
Equiv. daily
(mboepd) 8.2 8.1 6.9 7.0
In addition, the Company had a swap transaction with a group of banks to fix the Company’s floating
interest rate exposure under the RBL facility from 1 November 2021 to 30 June 2024. See the section
on financial risk management and financial risk factors on page 95 and note 2 in the consolidated
financial statements.
Principal risks and uncertainties
The Company is required to give a description of the principal risks and uncertainties which it faces.
These principal risks and uncertainties are included as part of the risk report and can be found on
page 25.
Climate change-related risks
The climate change-related risks are described in more details in the sustainability section on
page 41, and the financial impact of climate change on BlueNord’s activities, are summarised in the
TCFD on page 48.
Going concern assumption
Pursuant to the Norwegian Accounting Act section 3-3a, the BlueNord Board confirms that the
requirements of the going concern assumption are met and that the annual accounts have been
prepared on that basis.
Our financial integrity, and our working capital and cash position, are considered satisfactory in relation
to the planned activity level for the next 12 months.
Health, environment and safety
BlueNord puts emphasis on its employees performing Company activities in line with the principals
of business integrity and with respect for people and the environment. During 2024, BlueNord was,
through its ownership in the DUC in which TotalEnergies is the operator, involved in production of oil
and gas, which are responsible for emission to the sea and to the air. The BlueNord’s wholly-owned
subsidiary CarbonCuts A/S is involved in CO
2
storage through operatorship of the Project Ruby’s
licence. Exploration and potential follow up activities may cause emissions to the environment.
BlueNord will conduct its business operation in full compliance with all applicable national legislation
in the countries where it is operating. The Company is committed to carry out its activities in a
responsible manner to protect people and the environment. Our fundamentals of health, safety,
environment, and quality (HSEQ) and safe business practice are an integral part of BlueNord
operations and business performance.
For more information, see the Sustainability section on page 57.
81 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Directors’ Report continued
Personnel resources and working environment
At the end of 2024, the Group had 44 employees (2023: 40) corresponding 40.95 FTE (2023: 37.32),
including three interns, with an average age of 47 years. The average tenure was 3.6 years, and women
comprised 40 percent of the workforce. The BlueNord subsidiary CarbonCuts A/S employees
were integrated into the BlueNord group in January 2024 at that time counting 4.9 FTE. The Group
maintained a stable workforce in 2024, with a growth rate of 10, mainly related to the acquisition
of CarbonCuts A/S, a 84.1 percent twelve-month retention rate, and a 2.3 percent attrition rate
as of December 2024.
In June 2024, Miriam Jager Lykke was appointed as Chief Operating Officer (COO).
At the end of 2024, the Company’s Board of Directors comprised seven members, all elected by
shareholders. The Board had a gender composition of three women and four men, representing over
40 percent female representation. The Board did not include any employee representatives.
BlueNord is an equal opportunity employer, committed to fostering diversity and inclusion in the
workplace. We welcome and embrace a variety of skillsets and perspectives, and we value differences
between people of different cultural backgrounds, ethnicity, age, gender, gender identification, gender
expression, sexual orientation, functional ability, religion, and philosophies of life. These principles
apply to all employment practices at BlueNord, including recruitment, hiring, compensation and
benefits, promotion, training and development, and leave of absence.
Management compensation is described in the Executive Remuneration Report. Sick leave in the
Group was 0.85 percent in 2024.
For more information, see the sustainability section on pages 58 to 61.
Research and development
BlueNord invests in research and development to support and further grow its exploration and
production (E&P) and energy transition activities.
Corporate governance
The Board wishes to maintain an appropriate standard of corporate governance and to fulfil the
recommendations in the Norwegian Code of Practice for Corporate Governance. Corporate
governance in BlueNord is based on equal treatment of all shareholders, a principle which is reflected
in the decisions taken at the general assembly.
For more information about the Board’s composition and activities during the year, see the section on
corporate governance on pages 69 to 73 in this report.
AGM
The AGM held on 14 May 2024, elected Glen Ole Rødland as chair and re-elected Robert J. McGuire,
Marianne Lie and Tone Kristin Omsted to the board. All matters on the agenda were approved. On
16 September an extraordinary general meeting was held where Kristin Færøvik and João Saraiva e
Silva were elected as new Board members until the ordinary general meeting of the Company in 2026.
For more information about corporate governance and corporate social responsibility, see the relevant
sections of this report. Also, see www.bluenord.com/corporate-governance and www.bluenord.
com/csr.
Directors’ and officers’ liability insurance
The Company has acquired and maintains a Directors’ and officers’ insurance policy to cover the
personal liability for financial losses that Directors and officers of the Company, and the Directors and
officers of the Company’s subsidiaries, may incur in their capacities as such. The policy is placed with
a reputable international carrier on market terms.
Ownership
There are no restrictions on the transfer of shares in BlueNord ASA. The Company currently has
approximately 2,500 shareholders and 22.69 percent of the shares are held by residents of Norway.
BlueNord ASA
In 2024, the parent company was a holding company, with expenses primarily from shareholder costs,
consultancy fees, legal fees, and payroll. The net financial loss was mainly due to bond loan interest
expenses, partially offset by interest received from group companies.
For more information about financial risk and market conditions, and a statement regarding going concern,
please see the relevant sections above. These comments are also valid for the parent Company.
Parent Company financial results for 2024
Personnel expenses amounted to USD 8.4 million in 2024, compared to USD 5.8 million in 2023.
This increase is primarily attributable to restructuring costs associated with reorganisation and
elevated social security taxes related to the exercise of Directors’ share options. The Company’s
previous Options Programme expired in August 2024, and BlueNord no longer has any outstanding
options. Other operating expenses of USD 5.3 million in 2024, compared to USD 3.5 million in 2023;
this increase is attributed to higher consultant and legal fees. The net operating result for 2024 showed
a loss of USD 10.3 million, compared to USD 5.7 million in 2023.
Net financial items led to an expense of USD 38.9 million in 2024, up from USD 4.7 million in 2023.
This increase was mainly due to the extinguishment of the BNOR14 bond, higher foreign exchange
losses and increased amortised costs related to the new BNOR16 bond loan. However, these expenses
were partially offset by higher interest income from intercompany loans and restricted cash account.
The Company’s net result for the year amounted to a loss of USD 49.2 million (2023: loss USD 10.4 million).
82 BlueNord
Directors’ Report continued
Allocations
The result for the year for BlueNord ASA in 2024 was a loss of USD 49.2 million. The Board proposes
the following allocations:
• allocated from other equity: USD 49.2 million; and
• total appropriation: USD 49.2 million.
Outlook
BlueNord ASA has a stable business, underpinned by the Company’s position in the DUC and
further supported by risk mitigations. The volatility in prices has been significant and management is
continuously assessing the market to mitigate commodity price volatility. The Company has during
2024 entered into fixed-price swap contracts for additional oil and gas volumes from 2024 to 2026.
The Company monitors global as well as local political and economic conditions that may affect
future results. The Company has not identified any negative impact on the Company’s assets or
income. See further detail on this issue and mitigations as outlined in the section Principal Risks
and Uncertainties on page 25.
First gas from the Tyra II field was achieved 21 March 2024, and maximum technical capacity was
reached by 10 November 2024. Ramp-up is ongoing and Tyra is expected to be at plateau production
in early Q2 2025. This will lead to a step change in performance for BlueNord, with a doubling of
production combined with a lowering of lifting cost per boe and emissions intensity. Direct field
operating expenditure is expected to decrease to USD 13 per barrel on average in 2025.
BlueNord ASA has a cash position with total liquidity of USD 520.6 million at the end of 2024 with cash
on balance sheet of USD 250.6 million and undrawn RBL capacity of USD 270.0 million. The Company
has a solid basis for executing the strategy and the ambition to deliver material shareholder returns and
significant value creation.
Activity to progress value additive organic DUC investment projects also continues, and we will seek
to sanction projects as they are sufficiently matured. BlueNord ASA believes economic investments in
these projects will help to replace produced reserves and provide strong financial returns benefitting
the Company’s shareholders.
The Company expects increased production from Q1 2025; the increase is driven by the Tyra
production start-up.
Guidance 2025 Unit Base Tyra Total
Q1 mboepd 20.0–22.0 17.0–20.0 37.0–42.0
Q2 mboepd 20.0–22.0 26.0–30.0 46.0–52.0
Q3 mboepd 22.0–24.0 26.0–30.0 48.0–54.0
Q4 mboepd 22.0–26.0 26.0–30.0 48.0–56.0
The following sections of BlueNord ASA Annual Report constitute part of the Director’s Report.
Annual Report chapter reference Content Page reference
Strategic Report Financial Review 21-23
Strategic Report Sustainability Statements 37-63
Strategic Report Principal Risks and Uncertainties 25-35
Governance Report Corporate Governance Report 69-73
Appendix 4 Norwegian Transparency Act Statement 141-142
Oslo
8 April 2025
Glen Ole Rødland Tone Kristin Omsted Marianne Lie Robert J. McGuire
Executive Chair Board member Board member Board member
Peter Coleman Kristin Færøvik João Saraiva e Silva Euan Shirlaw
Board member Board member Board member Chief Executive Officer
83 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Reporting of Payments to Governments
This report is prepared in accordance with the Norwegian Accounting Act section §3-3d and
Securities Trading Act §5-5a. It states that companies engaged in activities within the extractive
industries shall annually prepare and publish a report containing information about their payments to
governments at country and project level.
The Ministry of Finance has issued a regulation (F20.12.2013 nr. 1682) stipulating that the reporting
obligation only applies to reporting entities above a certain size and to payments above certain
threshold amounts. In addition, this regulation stipulates that the report shall include other information
than payments to governments, and it provides more detailed rules applicable to definitions,
publication and Group reporting.
The management of BlueNord ASA has applied judgement in the interpretation of the wording in
the regulation with regard to the specific types of payments to be included in this report, and at what
level they should be reported. Where payments are required to be reported on a project-by-project
basis, they are reported on a field-by-field basis. Only gross amounts on operated licences are to be
reported, as all payments within the licence performed by non-operators will normally be cash calls
transferred to the Operator and are as such not payments to the government.
All activities of BlueNord ASA within the extractive industries are located on the Danish continental
shelf and all are performed as non-operator. All the reported payments below are to the
Danish government.
Income tax
Income tax is calculated and paid on a corporate level and is therefore reported for the whole
Company rather than licence-by-licence. The income tax payment in 2024 is a USD 7.3 million second
instalment temporary EU Solidarity Contribution, which is calculated at 33.0 percent of 2023 earnings.
Further, in 2024, BlueNord paid USD 44.0 million of a 25 percent chapter two hydrocarbon tax
pertaining to 2023 earnings and USD 5.1 million pertaining to prior years as well as a USD 11.9 million
first instalment on account tax for income year 2024. The Group also paid Danish corporate tax for
2023 of USD 6.5 million.
Other information required to be reported
In accordance with regulation F20.12.2013 nr. 1682 BlueNord ASA is also required to report on
investments, operating income, production volumes, and purchases of goods and services.
All reported information is relating to BlueNord ASA activities within the extractive industries on
the Danish continental shelf.
• Total net investments amounted to USD 236.3 million, as specified in the cash flow analysis in the
Financial Statements.
• Sales income (petroleum revenues) in 2024 amounted to USD 702.0 million, as specified in the
Financial Statements.
• Total production in 2024 was 9.2 million barrels of oil equivalent.
For further information about purchases of goods and services please refer to the Income Statement
and related notes.
84 BlueNord
2024 was characterised by
strong base asset performance
that underpinned robust
financial results and a
successful optimisation of
the capital structure.”
85 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Consolidated Statements 87
Consolidated Statement of Comprehensive Income 87
Consolidated Statement of Financial Position 88
Consolidated Statement of Changes in Equity 89
Consolidated Statement of Cash Flows 90
Notes 91
Statutory Accounts 119
Income Statement 119
Balance Sheet 120
Cash Flow Statement 121
Notes 122
Independent Auditor’s Report 129
Statement of Compliance 132
Alternative Performance Measures 133
Supplementary Oil and Gas Information (unaudited) 134
Appendices 137
Financial
Statements
04
$702m
Total revenue
$354m
EBITDA
$521m
Total liquidity
86 BlueNord
Consolidated Statements 87
Consolidated Statement of Comprehensive Income 87
Consolidated Statement of Financial Position 88
Consolidated Statement of Changes in Equity 89
Consolidated Statement of Cash Flows 90
Note 1: Summary of material accounting policies 91
Note 2: Financial risk management 95
Note 3: Critical accounting estimates and judgements 97
Note 4: Climate risk management 98
Note 5: Revenue 100
Note 6: Production Expenses 101
Note 7: Exploration and evaluation expenses 101
Note 8: Personnel expenses 101
Note 9: Other operating expenses 101
Note 10: Goodwill and intangible assets 102
Note 11: Property, plant and equipment 102
Note 12: Impairments 103
Note 13: Financial income and expenses 104
Note 14: Tax 104
Note 15: Earnings per share 107
Note 16: Non-current receivables, trade receivables and other current receivables 107
Note 17: Inventories 107
Note 18: Restricted bank deposits, cash and cash equivalents 108
Note 19: Financial instruments 108
Note 20: Share capital 111
Note 21: Post-employment benefits 112
Note 22: Asset retirement obligations 113
Note 23: Borrowings 114
Note 24: Trade payables and other payables 117
Note 25: Guarantees 117
Note 26: Investments in jointly owned assets 118
Note 27: Contingencies and commitments 118
Note 28: Related party transactions 118
Note 29: Subsequent events 118
Statutory Accounts 119
Income Statement 119
Balance Sheet 120
Cash Flow Statement 121
Note 1: Accounting principles 122
Note 2: Revenue 124
Note 3: Investments in subsidiaries 124
Note 4: Restricted bank deposits 124
Note 5: Borrowings 124
Note 6: Guarantee 125
Note 7: Shareholders’ equity 125
Note 8: Share capital and shareholder information 125
Note 9: Payroll expenses and remuneration 127
Note 10: Write-down of financial assets 127
Note 11: Tax 127
Note 12: Other operating expenses and audit fees 127
Note 13: Related party transactions 128
Independent Auditor’s Report 129
Statement of Compliance 132
Alternative Performance Measures 133
Supplementary Oil and Gas Information (unaudited) 134
Appendices 137
Financial Statements continued
87 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Consolidated Statement of Comprehensive Income
As of 31 December

USD million | Note | 2024 | 2023
Total revenues | 5 | 702 . 3 | 79 5.0
Production expenses | 6 | (31 0. 4) | (3 4 0 .1)
Exploration and evaluation expenses | 7 | (5 .9) | (1 .4)
Personnel expenses | 8 | (1 9. 7) | (1 8. 0)
Other operating expenses | 9 | (12 . 4) | (14 .1)
Total operating expenses |  | (3 48 . 4) | (373 . 6)
Operating result before depreciation, amortisation and impairment (EBITDA) |  | 353.9 | 42 1.4
Depreciation/amortisation/impairment | 11, 10 | (1 35 . 4) | (1 02. 6)
Net operating result (EBIT) |  | 218. 5 | 318. 8
Financial income | 13 | 2 6.0 | 2 3 .1
Financial expenses | 13 | (256.7) | (9 8. 3)
Net financial items |  | (230.6) | (75. 2)
Result before tax (EBT) |  | (1 2 .1) | 24 3 . 6
Income tax benefit/(expense) | 14 | (5 8. 7) | (13 3 .7)
Net result for the year 1) |  | (70. 8) | 109. 8
Other comprehensive income: |  |  |
Items that are or may be subsequently reclassified to profit or loss: |  |  |
Realised cash flow hedge revenue | 19 | 1.6 | (19. 7)
Realised cash flow hedge financial items | 19 | (2 0. 2) | (29. 3)
Related tax – realised cash flow hedge | 14, 19 | 3 .1 | 1 9.1
Changes in fair value cash flow hedges revenue | 19 | (10 0. 4) | 102. 5
Changes in fair value cash flow hedges financial items | 19 | 0.6 | 5.2
Related tax – changes in fair value cash flow hedges | 14, 19 | 6 4 .1 | (66 . 8)
Currency translation adjustment |  | (3 .0) | 1.4
Total other comprehensive income for the year |  | (54 . 2) | 12.4
Total comprehensive income for the year 1) |  | (1 25 . 0) | 122 .3
Basic earnings/loss USD per share | 15 | (2 .7) | 4.2
Diluted earnings/loss USD per share | 15 | (2 .7) | 4.2

1) 100 percent attributable to equity holders of the parent company.
88 BlueNord
Consolidated Statement of Financial Position
As of 31 December

USD million | Note | 31.12.2024 | 31.12.2023 1) | 01.01.2023 1)
Non-current assets |  |  |  |
Goodwill and intangible assets | 10 | 1 4 7. 0 | 1 51 .6 | 16 0.4
Deferred tax assets | 14 | 159. 8 | 218 .5 | 2 39 .1
Property, plant and equipment | 11 | 2 ,57 3.0 | 2 , 4 2 7. 9 | 2, 08 3.3
Right of use asset |  | 1.5 | 1.4 | 0.9
Restricted bank deposits | 18, 19 | 61 .5 | 213. 9 | 2 03 .7
Receivables non-current | 16 | – | 3 .7 | 0.8
Derivative instruments | 19 | 4.8 | 14 .0 | 3 3.7
Total non-current assets |  | 2 , 9 4 7. 5 | 3,0 31.0 | 2 ,721 .8
Current assets |  |  |  |
Derivative instruments | 19 | 9. 5 | 7 1.7 | 130.9
Tax receivable | 14 | 2.2 | – | –
Trade receivables and other current assets | 16, 19 | 3 9.0 | 88 .7 | 128 .6
Inventories | 17 | 55. 8 | 5 4 .7 | 55.9
Restricted cash and bank deposits | 18, 19 | 1 5 7. 3 | 0 .1 | 0 .1
Cash and cash equivalents | 18 | 250.6 | 166 .7 | 268.4
Total current assets |  | 5 1 4.3 | 381 .9 | 583.9
Total assets |  | 3,46 1.8 | 3 ,41 2 . 9 | 3 , 30 5.7

Oslo
8 April 2025
Glen Ole Rødland Tone Kristin Omsted Marianne Lie Robert J. McGuire Peter Coleman Kristin Færøvik João Saraiva e Silva Euan Shirlaw
Executive Chair Board member Board member Board member Board member Board member Board member Chief Executive Officer

USD million | Note | 31.12.2024 | 31.12.2023 1) | 01.01.2023 1)
Equity |  |  |  |
Share capital | 20 | 1 .7 | 1 .7 | 1.7
Other equity |  | 693.9 | 8 11. 9 | 6 62.5
Total equity |  | 695 .6 | 813 .6 | 664. 2
Non-current liabilities |  |  |  |
Asset retirement obligations | 22 | 1, 110.6 | 1 ,0 33 .7 | 946. 1
Bond loan | 19, 23 | 303 .5 | 169.1 | 16 6.9
Reserve-based lending facility | 19, 23 | 834.3 | 695 .8 | 76 4. 0
Derivative instruments 1) | 19 | 23.0 | 3.2 | 9 0.4
Other non-current liabilities |  | 1 .1 | 1 .1 | 0.7
Total non-current liabilities |  | 2,2 7 2. 7 | 1,902.9 | 1,968. 1
Convertible bond loans 1) | 19, 23 | 23 3 .1 | 20 1.7 | 188 .7
Reserve-based lending facility | 19, 23 | – | 125 .0 | –
Asset retirement obligations | 22 | 11 .4 | 15 .4 | 9.8
Tax payable | 14 | 0 .1 | 140. 0 | 209.0
Derivative instruments 1) | 19 | 149 .5 | 89.0 | 125 .3
Trade payables and other current liabilities | 24, 19 | 9 9.4 | 125 .3 | 14 0.6
Total current liabilities |  | 493 .5 | 696.4 | 673 .4
Total liabilities |  | 2 ,766 .1 | 2,59 9.3 | 2 , 6 41 . 5
Total equity and liabilities |  | 3, 46 1.8 | 3 , 412 . 9 | 3 ,3 05 .7

1) The convertible bond loan and the related embedded derivative have been reclassified to current liabilities with retrospective effect.
For more details, refer to Note 1.1.1, Changes in material accounting policies.
89 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Consolidated Statement of Changes in Equity
As of 31 December

|  | Share |  | Currency | Cash flow |  |
| Share | premium | Treasury | translation | hedge | Other | Total
All figures in USD million | capital | fund | share reserve | fund | reserve | equity | equity
2023 |  |  |  |  |  |  |
Equity as of 01.01.2023 | 1.7 | 768 . 4 | (0 .1) | 0.5 | 13.9 | (1 20 . 2) | 6 6 4.1
Net result for the period |  |  |  |  |  | 109.8 | 109.8
Other comprehensive income |  |  |  |  |  |  |
Realised cash flow hedge revenue | – | – | – | – | (19. 7) | – | (19. 7)
Realised cash flow hedge financial items | – | – | – | – | (29. 3) | – | (2 9. 3)
Related tax – realised cash flow hedge | – | – | – | – | 19 .1 | – | 1 9.1
Changes in fair value cash flow hedge revenue | – | – | – | – | 102. 5 | – | 1 02.5
Changes in fair value cash flow hedge financial items | – | – | – | – | 5.2 | – | 5.2
Related tax – changes in fair value cash flow hedges | – | – | – | – | (66 .8) | – | (66 . 8)
Currency translation adjustments | – | – | – | 1.4 | – | – | 1.4
Total other comprehensive income | – | – | – | 1.4 | 11. 0 | – | 12.4
Issue of shares | 0.0 | 14. 5 | – | – | – | – | 14. 6
Settlement derivatives/conversion bonds | – | – | – | – | – | 8. 3 | 8.3
Share-based incentive programme | – | – | 0.0 | – | – | 4. 3 | 4 .4
Total transactions with owners for the period | 0.0 | 14. 5 | 0.0 | – | – | 12. 6 | 2 7. 2
Equity as of 31.12.2023 | 1.7 | 782 .9 | (0 .1) | 2.0 | 24 . 9 | 2. 2 | 813 .6
2024 |  |  |  |  |  |  |
Equity as of 01.01.2024 | 1.7 | 78 2. 9 | (0 .1) | 2 .0 | 24 .9 | 2.2 | 813 .6
Net result for the period |  |  |  |  |  | (70. 8) | (70. 8)
Other comprehensive income |  |  |  |  |  |  |
Realised cash flow hedge revenue | – | – | – | – | 1.6 | – | 1 .6
Realised cash flow hedge financial items | – | – | – | – | (20 . 2) | – | (20. 2)
Related tax – realised cash flow hedge | – | – | – | – | 3 .1 | – | 3 .1
Changes in fair value cash flow hedge revenue | – | – | – | – | (1 0 0. 4) | – | (1 00 . 4)
Changes in fair value cash flow hedge financial items | – | – | – | – | 0.6 | – | 0.6
Related tax – changes in fair value cash flow hedges | – | – | – | – | 6 4 .1 | – | 6 4 .1
Currency translation adjustments | – | – | – | (3 .0) | – | – | (3 .0)
Total other comprehensive income | – | – | – | (3 .0) | (51 . 2) | – | (5 4 . 2)
Issue of shares | 0.0 | 4. 2 | – | – | – | – | 4. 2
Sale of shares | – | – | 0 .1 | – | – | 1 .4 | 1.5
Share-based incentive programme | – | – | – | – | – | 1.3 | 1. 3
Total transactions with owners for the period | 0.0 | 4. 2 | 0 .1 | – | – | 2 .7 | 7. 0
Equity as of 31.12.2024 | 1.7 | 7 8 7. 2 | – | (1. 0) | (26 .3) | (6 5 .9) | 695 .6

90 BlueNord
Consolidated Statement of Cash Flows
For the year ended 31 December

USD million | Note | 2024 | 2023
Cash flows from operating activities |  |  |
Net result for the year |  | (70. 8) | 109. 8
Adjustments for: |  |  |
Income tax benefit/(expense) | 14 | 58 .7 | 13 3 .7
Net financial items | 13 | 230.6 | 75 . 2
Depreciation/impairment | 11, 10 | 135 .4 | 102.6
Share-based payments expenses |  | 1.6 | 5. 2
Interest received 1) | 13 | 7. 1 | 9.6
Other financial items paid |  | (1 . 8) | (8. 4)
Changes in: |  |  |
Trade receivable | 16 | 31. 8 | 3 4 .1
Trade payables | 24 | (34 . 4) | 11 .5
Inventories and spare parts | 17 | (1 .1) | 1.2
Prepayments | 16 | 15 .4 | (0. 6)
Over/under-lift | 16, 24 | 8.9 | 6.3
Other current balance sheet items 2) |  | 1.9 | (0. 6)
Cash flow from operating activities |  | 383.3 | 479 .7
Tax (paid)/received |  | (74 . 8) | (229.8)
Net cash flow from operating activities |  | 308. 5 | 24 9 . 9
Cash flows from investing activities |  |  |
Long-term loan provided | 16 | – | (2 .8)
Acquisition of subsidiary, net of cash acquired |  | 1.5 | –
Deferred consideration |  | – | (25 .0)
Investment in oil and gas assets | 11 | (23 6. 3) | (311 .0)
Investment in exploration and evaluation assets | 10 | – | (0 .1)
Payments for decommissioning of oil and gas fields | 22 | (1 5 . 5) | (8 .7)
Net cash flow from investing activities |  | (250 .3) | (3 4 7. 6)
Cash flows from financing activities |  |  |
Drawdown long-term liability | 23 | 330.0 | 50.0
Repayment long-term liability | 23 | (1 92 . 5) | –
Lease payments |  | (0.6) | (0.4)
Sale of shares |  | 1.5 | 0. 2
Issue of shares |  | 4.2 | –
Interest and fees external loan |  | (1 1 7. 0) | (5 3. 6)
Net cash flow from financing activities |  | 25.6 | (3 . 9)
Net change in cash and cash equivalents |  | 83.8 | (10 1. 6)
Cash and cash equivalents at the beginning of the year |  | 166 .7 | 268.4
Cash and cash equivalents at end of the year |  | 250.6 | 16 6.7

1) Excluding interest received from restricted bank accounts.
2) Mainly currency adjustments balance sheet items.
91 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
1 Summary of material accounting policies
BlueNord ASA (‘BlueNord’, ‘the Company’ of ‘the Group’) is a public limited liability company registered
in Norway, with headquarters in Oslo (Nedre Vollgate 3, 0158 Oslo). The Company has subsidiaries
in Norway, Denmark, the Netherlands, and the United Kingdom. The Company is listed on the Oslo
Stock Exchange.
The consolidated financial statements for 2024 were approved by the Board of Directors on 8 April
2025 and will be presented for approval at the Annual General Meeting on 14 May 2025.
The material accounting policies applied in the preparation of these consolidated financial statements
are set out below. These policies have been consistently applied to all the years presented, unless
otherwise stated. The Group also provides the disclosure requirements as specified under the
Norwegian Accounting Law (Regnskapsloven).
1.1 Basis of preparation
The consolidated financial statements of BlueNord ASA have been prepared in accordance with the
IFRS
®
Accounting Standards, as endorsed by the EU. The Group also provide information required in
accordance with the Norwegian Accounting Act and associated NGAAP standards.
The preparation of financial statements in accordance with IFRS
®
Accounting Standards requires the
use of certain critical accounting estimates. It also requires management to exercise its judgement
in the process of applying the Group’s accounting policies. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and estimates are significant to the
consolidated financial statements are disclosed in note 3.
The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.
1.1.1 Changes in material accounting policies
Amendments to standards
Effective January 1, 2024, amendments to IAS 1 Presentation of Financial Statements have resulted in
the reclassification of the convertible bond loan as a current liability.
BlueNord has a bond loan that comprises a financial liability and an option granted to the holders to
convert the bond into shares of the Company at any time before maturity. The conversion option does
not meet the definition of an equity instrument and is an embedded derivative recognised separately
from the host liability.
BlueNord interpreted the previous IAS 1 that the holders’ option to convert at any time did not affect the
classification, and the bond loan and related embedded derivatives were classified as non-current as
long as it was more than twelve months to maturity.
The amended IAS 1 clarified that transfer of a company’s shares is a form of settlement and when a
company classifies the host liability as current or non-current, it can ignore only those conversion
options that are recognised as equity. As the Company does not have the right to defer settlement for
at least twelve months from the reporting dates, the host liability and the related embedded derivatives
are reclassified as current.
Except for the amendments to IAS 1 mentioned above, there were no material changes in accounting
policies in 2024.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting
periods beginning on or after 1 January 2027, provided it is approved by the EU. The new standard
introduces the following key new requirements:
Classify all income and expenses into five categories in the profit or loss section of the consolidated
statement of comprehensive income, namely the operating, investing, financing, discontinued
operations and income tax categories. It is also required to present a newly defined operating profit
subtotal. Net result will not change. Management-defined performance measures (MPMs) are
disclosed in a single note in the financial statements. Enhanced guidance is provided on how to group
information in the financial statements. In addition, it is required to use the operating profit subtotal
as the starting point for the consolidated statement of cash flows when presenting cash flows from
operating activities under the indirect method. The Group has not assessed the impact of the new
standard, particularly with respect to the structure of the profit or loss section of the consolidated
statement of comprehensive income, the consolidated statement of cash flows and the additional
disclosures required for MPMs.
Notes
92 BlueNord
1 Summary of material accounting policies continued
1.2 Consolidation
Subsidiaries
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries as of 31 December 2024. Subsidiaries are all entities over which the Group has control. Control
is achieved where the Group has the power over the subsidiary, has rights, or is exposed to variable returns
from the subsidiary and has the ability to use its power to affect its returns. All subsidiaries are 100 percent
owned by the Group and there are no non-controlling interests. In January 2024 BlueNord acquired 100
percent of the shares in CarbonCuts A/S, an early-stage CCS company in Denmark.
The Group had the following subsidiaries on 31 December 2024:

| Country of |  | Ordinary | Ordinary
| incorporation |  | shares | shares
| and place |  | directly held | held by the
Name | of business | Nature of business | by parent (%) | Group (%)
BlueNord Denmark A/S | Denmark | Intermediate holding company |  | 100%
BlueNord Energy Denmark A/S | Denmark | Exploration and production activity |  | 100%
BlueNord Gas Denmark A/S | Denmark | Exploration and production activity |  | 100%
CarbonCuts A/S | Denmark | Carbon capture and storage |  | 100%
BlueNord Energy 8/06 | Netherlands | Exploration and production |  | 100%
Denmark B.V |  | activity |  |
BlueNord Pipeline Denmark Aps Denmark |  | Infrastructure oil and gas |  | 100%
BlueNord Energy UK Ltd | Great Britain | Exploration activity |  | 100%
BlueNord UK Ltd | Great Britain | Exploration activity | 100% | 100%
Altinex AS | Norway | Intermediate holding company | 100% | 100%
BlueNord AS | Norway | Dormant company | 100% | 100%

Joint arrangements
BlueNord has interests in licenses on the Danish Continental Shelf. A joint arrangement is defined as
an arrangement over which two or more parties have joint control. Joint control is the contractually
agreed sharing of control which exists only when decisions about the relevant activities (being those
that significantly affect the returns of the arrangement) require unanimous consent of the parties
sharing control.
Under IFRS 11 Joint Arrangements, a joint operation is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating
to the arrangement. BlueNord recognises investments in joint operations (oil and gas production
licences) by reporting its share of related revenues, expenses, assets, liabilities and cash flows, under
the respective items in the Company’s financial statements.
1.3 Segment reporting
The whole Group is considered a single operating segment.
1.4 Foreign currency translation
a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the
currency of the primary economic environment in which the entity operates (‘the functional currency’).
The consolidated financial statements are presented in US dollars (USD), which is the Group’s
presentation currency and the parent company and main operating companies’ functional currency.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuation where items are re-measured. Foreign
exchange gains and losses are recognised in the income statement as other financial income or other
financial expenses.
c) Group companies
All currency translation adjustments are recognised in other comprehensive income (OCI).
1.5 Property, plant and equipment
Property, plant and equipment include asset under construction, production facilities, pipelines,
machinery, and equipment. Items of property, plant and equipment are measured at cost, less
accumulated depreciation and accumulated impairment losses.
For property, plant and equipment where asset retirement obligations for decommissioning and
dismantling are recognised as a liability, this value is added to acquisition cost for the respective assets.
Direct and indirect expenditures related to asset under construction are capitalised. The development
phase commences when the licence partners have decided field evaluation.
Production facilities are depreciated in accordance with the unit of production (UoP) method based on
proven and probable reserves (the ratio between annual production quantity and the reserves). If realisation
of probable reserves demands further future investments, these are added to the basis of depreciation.
Acquired assets used for extraction and production of petroleum deposits, are depreciated using
the UoP method based on proven and probable reserves.
Onshore assets are depreciated over the estimated useful life, according to the straight-line
method, three to five years. Pipelines are depreciated to the expiry of the licence, according to the
straight-line method.
Depreciation methods, useful lives, residual values and reserves are reviewed at each reporting
date and adjusted if appropriate.
Notes continued
93 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
1 Summary of material accounting policies continued
1.6 Intangible assets
Licence rights
Licence rights acquired in a business combination are measured on initial recognition at cost.
Following initial recognition, licence rights are depreciated using the UoP method based on proven and
probable reserves.
1.7 Impairment of non-financial assets
The Group has determined that the smallest identifiable assets or groups of assets that generate cash
inflows independently from other assets or groups are the DUC assets as a whole and the CarbonCuts
business unit. Therefore, the Group has concluded that it has two cash-generating units (CGUs).
If there is any indication that the CGU may be impaired, recoverable amount shall be estimated for the
CGU, and compared to its carrying amount. The recoverable amount is the higher of the fair value less
costs of disposal and the value in use.
In estimating value in use, expected future cash flows are discounted to the net present value applying
a discount rate after tax that reflects the current market valuation of the time value of money and risks
specific to the CGU. The discount rate is derived from a weighted average cost of capital (‘WACC’)
for a market participant. For the purpose of impairment testing the lifetime of the field is normally
determined to be the time when the operating cash flows from the field become negative.
If there is any indication that the DUC CGU may be impaired, the Group has relied on its market
capitalisation to arrive at an estimate of the headroom of the DUC CGU.
As the Company’s shares are listed on the Oslo Stock Exchange, the market capitalisation is regarded
as a good approximation of the fair value of the Group’s equity (DUC CGU). The Group’s judgement
is that it can make a reliable estimate of the fair value of its equity and thereby the CGUs, based on its
market capitalisation. Adjusted for any estimated differences between the carrying amounts and fair
value of assets and liabilities not included in the CGUs, the difference between its market capitalisation
and carrying amount of equity is a reliable estimate of the difference between the estimated fair value
and the carrying amount of the CGUs (‘headroom’). Adjusted for cost of disposal, if this gives a positive
headroom, it is not necessary to estimate value in use, should an impairment test be required. If not
positive a value in use calculation will be calculated and compared to the carrying value of the CGU.
On the CarbonCuts CGU, the Group has recognised a goodwill from the acquisition of CarbonCuts
and the carrying amounts and recoverable amounts are considered immaterial, therefore no formal
impairment test has been performed as any impairment would be immaterial.
1.8 Financial instruments
The Group has financial instruments at fair value through profit or loss and at amortised cost. See note
19.2 Financial instruments for overview of the categories.
The Group has designated derivatives as cash flow hedging instruments, see note 1.10, with the
change in fair value temporarily to other comprehensive income.
The convertible bond loan has been determined to contain embedded derivatives, which is accounted
for separately as a derivative at fair value through profit or loss, while the loan element is measured at
amortised cost (note 3.1).
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to
the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some
or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services
and amortised over the period of the facility to which it relates. For hybrid (combined) instrument
that includes a non-derivative host contract that is not accounted for at FVTPL and an embedded
derivative that is accounted for at FVTPL such as the convertible bond, the Company has elected
an accounting polity that all of the transaction costs are always allocated to and deducted from the
carrying amount of the non-derivative host contract on initial recognition.
Further details on fair values of financial instruments are provided in note 19 Financial instruments.
1.9 Impairment of financial assets
The Group applies a simplified approach in calculating expected credit losses (ECLs) for trade
receivables and contract assets. Therefore, the Group does not track changes in credit risk, but
instead recognises a loss allowance based on lifetime ECLs at each reporting date.
1.10 Derivative financial instruments and hedging activities
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss
depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the
item being hedged.
The Group uses derivative financial instruments, such as forward commodity contracts and options,
to reduce the exposure to commodity price volatility on future sale of oil and gas. The Group has
elected to apply cash flow hedge accounting designating these derivatives. These derivative financial
instruments are subsequently re-measured at fair value and the effective portion of the gain or loss on
the hedging instrument is recognised in OCI, while any ineffective portion is recognised immediately
in profit or loss (financial income or financial expenses). The cash flow hedge reserve is adjusted to the
lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair value
of the hedged item. The amount accumulated in OCI is reclassified to profit or loss as a reclassification
adjustment in the same periods during which the hedged cash flows affect profit or loss. If cash flow
hedge accounting is discontinued, the amount that has been accumulated in OCI must remain in
accumulated OCI if the hedged future cash flows are still expected to occur. Otherwise, the amount will
be immediately reclassified to profit or loss as a reclassification adjustment. Derivatives are carried as
financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
Notes continued
94 BlueNord
1 Summary of material accounting policies continued
1.11 Cash and cash equivalents
Cash and cash equivalents include cash, bank deposits and short-term liquid placements, that
immediately and with insignificant risk of changes in value can be converted to known cash amounts
and with a remaining maturity less than three months from the date of acquisition.
1.12 Over/under-lifting of hydrocarbons
Over/under-lifting occurs when the Group has lifted and sold more or fewer hydrocarbons from a
producing field than what the Group is entitled to at the time of lifting. When over-lifting occurs, the
Group has recognised more revenue than it is entitled to and for which it has been charged production
costs from the Operator, and consequently the Group recognises an additional expense related to
the over-lift. For under-lifting, the Group has been charged production costs from the Operator related
to production of hydrocarbons that it has not sold, and consequently the Group defers some costs.
Over-lifting of hydrocarbons is presented as other current liabilities, under-lifting of hydrocarbons
is presented as other current assets. The value of over/under-lifting is measured at production cost
including depreciation. Over-lifting and under-lifting of hydrocarbons are presented at gross. Over/
under-lift positions are expected to be settled within 12 months from the reporting date.
1.13 Borrowing costs
The Group capitalise borrowing costs that are directly attributable to the construction of qualifying
assets. The Group identifies qualifying assets as those that necessarily takes 12 months or more
to construct and get ready for its intended use. For the periods presented this is only the Tyra
redevelopment project. No additional borrowing cost capitalised in 2024, as Tyra II started production
21 March 2024 hence the qualifying assets were ready for its intended use early 2024.
The Group calculates an annual weighted average interest rate based on general borrowings and
multiplies with the average carrying amount of assets under construction. The amount of borrowing
costs eligible for capitalisation each year is limited to the actual interest expense before capitalisation
less interest income and gains on extinguishment of bond loans.
Other borrowing costs are included as financial expenses in the consolidated statement of
comprehensive income in the period in which they are incurred.
1.14 Current and deferred income tax
The tax expense for the period comprises current tax, tax impact from refund of exploration expenses
and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to
items recognised in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in
equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the reporting date in the countries where the Company and its subsidiaries operate and
generate taxable income.
Producers of oil and gas on the Danish continental shelf are subject to the hydrocarbon tax regime
under which, income derived from the sale of oil and gas is taxed at an elevated 64 percent. Any
income deriving from other activities than first-time sales of hydrocarbons is taxed at the ordinary
corporate income rate of currently 22 percent. The 64 percent is calculated as the sum of the ‘Chapter
2’ tax of 25 percent plus a specific hydrocarbon tax (Chapter 3A) of 52 percent, in which the 25 percent
tax payable is deductible in the tax basis. When calculating the 52 percent tax, the Company is allowed
to deduct an uplift (i.e. increased depreciation basis for tax purposes) of 30 percent of the investments
in property, plant & equipment (PP&E) over a period of six years. Through an agreement from 2017,
licence holders on the Danish continental shelf have had the possibility of applying temporary new
rules whereby the Company will have the possibility of increased uplift by 9 percent and accelerated
depreciation during the period from 2017 to 2025. At the same time, an additional tax was introduced
which will materialise from 2022 through 2037 if the oil price for the year (indexed from 2017) exceeds
USD 75.0. The accumulated additional tax in the years 2022 through 2037 cannot exceed the benefit
received in previous years related to the increased uplift and accelerated depreciation. The additional
tax is accounted for in the year the oil price exceeds the thresholds.
1.15 Pensions
The Group only has defined contribution plans as of 31 December 2024 and 31 December 2023.
The contributions are recognised as an employee benefit expense for the periods they relate to.
1.16 Share-based payments
The Group operates a number of equity-settled, share-based compensation plans, under which the
entity receives services from employees as consideration for equity instruments (options and shares)
of the Group. The fair value of the employee services received in exchange for the grant of the options
is recognised as an expense with a corresponding amount recognised to equity. The total amount to
be expensed is determined by reference to the fair value of the options or shares granted.
Fair value:
• including any market performance conditions; and
• excludes the impact of any service and non-market performance vesting conditions (for example,
profitability, sales growth targets and remaining an employee of the entity over a specified time period).
Non-market performance and service conditions are included in assumptions about the number of
options and shares that are expected to vest. The total expense is recognised over the vesting period
(which is the period over which all of the specified vesting conditions are to be satisfied). At the end of each
reporting period, the Group revises its estimates of the number of options and shares that are expected
to vest based on the non-market vesting conditions. It recognises the impact of the revision to original
estimates, if any, in the income statement, with a corresponding adjustment to equity. When the options
are exercised, the Company issues new shares. The proceeds received net of any directly attributable
transaction costs are credited to share capital (nominal value) and share premium. The social security
contributions payable in connection with the grant of the share options and shares are considered an
integral part of the grant itself, and the charge will be treated as a cash-settled transaction.
Notes continued
95 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Notes continued
1 Summary of material accounting policies continued
1.17 Asset retirement obligations
Provisions reflect the estimated cost of decommissioning and removal of wells and production
facilities used for the production of hydrocarbons. Asset retirement obligations are measured at
present value of the anticipated future cost (estimated based on current day costs inflated). The liability
is calculated on the basis of current removal requirements and is discounted to present value using a
risk-free rate adjusted for credit margin. Liabilities are recognised when they arise and are adjusted
continually in accordance with changes in requirements, price levels etc. When a decommissioning
liability is recognised or the estimate changes, a corresponding amount is recorded to increase
or decrease the related asset and is depreciated in line with the asset. Increase in the provision as
a result of the time value of money is recognised in the income statement as a financial expense.
If abandonment cost through agreements with partners have been limited to a given amount, this
then forms the basis for the recognised liability. Payments for decommissioning of oil and gas fields
are included in investing activities in the cash flow statement, as the Group’s judgement is that the
nature of this expenditure is payment for an item of property, plant and equipment.
1.18 Revenue recognition
Revenue is recognised when the customer obtains control of the hydrocarbons, which is ordinarily
at the point of delivery (lifting and sales) when title passes (sales method).
See note 1.12 for a description of accounting for over/under lifting of hydrocarbons in the Statement
of Financial Position.
1.19 Production expenses
Production expenses are expenses that are directly attached to production of hydrocarbons, e.g.
expenses for operating and maintaining production facilities and installations. Expenses mainly
consist of man-hours, insurance, processing costs, environmental fees, transport costs etc.
1.20 Consolidated statement of cash flows
The consolidated statement of cash flows is prepared according to the indirect method. See note 1.11
for the definition of ‘Cash and cash equivalents’.
Payments for decommissioning of oil and gas fields are included in investing activities, see note 1.17.
For payment of deferred consideration, the Group’s judgement is that amounts that relates to
obtaining control in a business combination is included in investing activities.
2 Financial risk management
2.1 Financial risk factors
The Group’s activities expose it to financial risks: market risk (including currency risk, price risk, interest
rate risk), credit risk and liquidity risk. The Group uses reserve-based lending facilities and bond loans
to finance its operations in connection with the day-to-day business, financial instruments, such as
bank deposits, trade receivables and payables, and other current liabilities that arise directly from its
operations, are utilised.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in the market prices. Market risk comprises three types of risk: foreign currency risk, price risk
and interest rate risk. Financial instruments affected by market risk include loans and borrowings, deposits,
trade receivables, trade payables, accrued liabilities and derivative financial instruments.
(a) Foreign currency risk
The Group is composed of businesses with various functional currencies including USD, EUR, GBP,
and DKK. The Group is exposed to foreign exchange risk for series of payments in other currencies
than the functional currency, mainly related to the ratio between NOK and USD, DKK and USD, EUR
and USD, and GBP and USD. The Group’s statement of financial position includes significant assets
and liabilities, which are recorded in other currencies than the Group’s presentation currency. As
such, the Group’s equity is sensitive to changes in foreign exchange rates. See note 16 Non-current
receivables, trade receivable and other current receivables, note 18 Restricted bank deposits, cash
and cash equivalents, note 19 Financial instruments, note 22 Asset retirement obligation, note 23
Borrowings note 24 Trade payables and other payables, note 27 Contingencies and commitments.
A decrease in the closing rate of NOK, EUR and DKK with 10 percent compared to USD would have
the following impact on financial assets, financial liabilities and equity:

USD million | NOK | DKK | EUR
Financial assets | 0 | 45 | 4
Financial liabilities | 0 | (4) | (2)
Effect net result/equity | 0 | 49 | 6

The Company considers the currency risk relating to the different financial instruments as low,
as the main financial items held in a currency other than the functional currency of the respective
components is offset by positions in other components of the Group. With regards to trade receivables
and payables, the Company deems the risk to be immaterial.
96 BlueNord
2 Financial risk management continued
(b) Price risk
BlueNord produces and sells hydrocarbons in Denmark and is as a result exposed to changes in
commodity prices. The Group has a material commodity price hedging programme in place that mitigates
the risk of near-term price movements. As of 31 December 2024, BlueNord had commodity derivatives
measured at fair value. A change in the value directly affects the Company’s OCI and recorded equity, and
hence the Group is exposed to the fair value development of these financial instruments. Assuming an
increase in the commodity price on 31 December 2024 of 10 percent and assuming this change will have full
effect on the whole curve, the effect on the value of commodity derivatives would have the following impact:

USD million | Equity | OCI | Net result
NBV 31.12.24 | (26) | (26) | 0
Commodity price +10% | (36) | (36) | 0
Commodity price -10% | 36 | 36 | 0

The effect on equity shown in the table would be equal to the change in value of the commodity
derivatives after tax. The change in value of hedging contracts over time will be offset by the realised
value of the contract when the hedge instrument matures, therefore the underlying value to BlueNord’s
business operations is not impacted by changes in the derivative value at any point in time.
(c) Interest rate risk
The Group has loans with fixed and floating interest rates. Loans with fixed interest rate expose
the Group to risk (premium/discount) associated with changes in the market interest rate. At year-
end, the Group has a total of USD 1.4 billion (2023: USD 1.2 billion) in interest-bearing debt (carrying
amount), the principal amount was USD 1.4 billion. The Group’s RBL facility has a floating interest rate
comprising the aggregate of SOFR and 4.0 percent per annum, while the Group’s Bond debt (BNOR
16) have a fixed interest rate exposure. The reserve-based lending facility is linked to the SOFR rate as
set at the time of the amendment and restatement. A variance of + 1 percent in the SOFR rate would
result in an average of USD 7.0 million of interest charges to BlueNord per annum. The Company has
hedged this interest rate until 30 June 2024 at a rate of 0.40 percent to protect against any increase in
SOFR rate. The Company is actively assessing the need for interest rate hedging, recognising it as a
key financial risk. For further information about the Group’s interest-bearing debt, see note 23.
All bank deposits (USD 469.4 million) are at floating interest rates. See note 18 Restricted cash, bank
deposits, cash and cash equivalents for further information about bank deposits. The Group considers
the risk exposure to changes in market interest to be at an acceptable level.
Liquidity risk
The Group has certain financial commitments arising from its operations and other agreements
entered into which are expected to be met by liquid assets, proceeds from external financing and
cash flow from operations. The Group monitors its liquidity situation continuously to ensure it will be
able to meet its financial obligations as they fall due. As of 31 December 2024, there are no principal
repayments expected within the next 12 months.
Credit risk
The Group’s most significant credit risk arises principally from recognised receivables related to the
Group’s operation. The credit risk arising from the production of oil, gas and Natural gas liquids (NGL’s)
is considered limited, as sales are to major energy companies with considerable financial resources.
The counterparty in derivatives are large international banks and insurance companies whose credit
risk is considered low.
2.2 Management of capital
The Group’s objectives when managing capital is to safeguard the Group’s ability to continue as a
going concern in order to provide return for shareholders and benefits for other stakeholders and to
maintain an acceptable capital structure to reduce the cost of capital.
The Group monitors the debt with the basis of cash flows, equity ratio and the gearing ratio. Both
BNOR16 and the RBL facility contains covenants on minimum liquidity and net leverage. The Group’s
debt restricts the payment of dividends until the Tyra Redevelopment Project Completion Date has
occurred. Under BNOR16, this is subject to an incurrence test and for any dividends made after
1 January 2027, this is limited to 50 percent of the Group’s net profit after tax for the previous year.
See further information regarding borrowings and covenants in note 23 .
2.3 Fair value estimation
The Group has certain financial instruments carried at fair value. The different fair value hierarchy
levels have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities
The fair value of financial instruments traded in active markets is based on quoted market prices at the
statement of financial position date. A market is regarded as active if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those
prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted
market price used for financial assets held by the Group is the current bid price.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or
liability, either directly or indirectly
Notes continued
97 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
2 Financial risk management continued
The fair value of financial instruments that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in Level 2. If one or more of the significant inputs is not based on observable
market data, the instrument is included in Level 3. Specified valuation techniques used to value
financial instruments include:
• quoted market prices or dealer quotes for similar instruments;
• the fair value of interest rate swaps is calculated as the present value of the estimated future cash
flows based on observable yield curves;
• the fair value of forward foreign exchange contracts is determined using forward exchange rates at
the statement of financial position date, with the resulting value discounted back to present value.
Level 3: Inputs for other assets or liabilities that are not based on observable market data.
In Level 3, there is one financial instrument, the embedded derivatives in the convertible bond.
The fair value of the embedded derivatives is calculated based on the Black-Scholes-Merton valuation
model. A change in the share price of +/- 10 percent would have the following impact on the embedded
derivates, net result and equity:

|  | Sensitivity analysis |
Share price | (%) | 10% | -10%
Embedded derivatives | USD million | (25) | 22
Effect net result/equity | USD million | (25) | 22

The embedded derivatives are in jurisdictions where there is tax loss carried forward where no
deferred tax assets are recognised. Therefore, it is concluded that there is no tax effect of the changes
in fair value. See note 19 for fair value hierarchy and further information.
3 Critical accounting estimates and judgements
3.1 Critical judgements in applying the entity’s accounting policies
a) Accounting for convertible bond loan
The Group has issued bonds with conversion rights and other embedded derivatives (but the conversion
feature is the main element). The conversion feature has been determined to constitute an embedded
derivative and has been separated from the loan contract. The loan element has been recognised at
amortised cost. At initial recognition, the loan was measured as the residual amount of the proceeds
from the bond issue, less issue costs, less the calculated fair value of the conversion feature.
The convertible bond is either a financial liability (including certain embedded derivative features
which may require separation) or a compound instrument (i.e. such a liability plus an equity conversion
option). The Group has assessed that the holder’s conversion option does not involve receiving a fixed
number of shares by giving up a fixed stated principal amount of bond, hence the Group has assessed
this instrument is not a compound instrument with an equity part. Further multiple embedded
derivatives have been identified in the host contract that has been assessed is not readily separable
and independent of each other, and as such is treated as a single compound embedded derivative.
The fair value measurement of the conversion feature using the Black-Scholes-Merton valuation
model, requires significant judgement when selecting and applying the required assumptions.
3.2 Critical accounting estimates and assumptions
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are addressed below.
a) Estimated value of financial assets and financial liabilities
The embedded derivatives in the convertible bond have been recognised separately at fair value
through profit and loss. The value of this embedded derivative has been calculated using the Black-
Scholes-Merton valuation model using assumptions for share price, volatility of share price and other
inputs which are subject to significant uncertainty.
For more details, see note 2.3 and 19 Financial Instruments.
b) Income tax
All figures reported in the statement of comprehensive income and the statement of financial position are
based on the Group’s tax calculations. Tax calculations are based on management’s best assessment
and interpretation of tax rules in place guided by industry tax practitioners. If it is expected that a
sustainable tax position may be challenged by the tax authorities due to uncertainty in law interpretation,
a provision is made to account for such uncertainty. Tax authorities can be of a different opinion than the
Company. At each period end the Company provide for expected clawback, if any. See also note 14.
c) Proven and probable oil and gas reserves and depreciation
Proven and probable reserves, along with production volumes and future capex, are used to calculate
the depreciation of oil and gas fields using the unit-of-production method. See note 11 Property, plant
and equipment for depreciation charges.
Oil and gas reserves are estimated by the Company’s experts in accordance with industry standards.
These estimates are based on BlueNord’s assessment of internal information and data received from
the Operator. Proven and probable oil and gas reserves include remaining volumes expected to be
recovered based on reasonable assumptions about future technical, economic, fiscal, and financial
conditions as of the date the estimates are prepared.
Notes continued
98 BlueNord
3 Critical accounting estimates and judgements continued
Key inputs include estimated commodity prices and CO
2
costs. A set of market price assumptions are
used in these commodity price estimates whereby oil and gas prices, in real terms, are assumed flat
at $65/bbl and EUR 30/MWh (inflated at 2 percent from 2026 onwards). The CO
2
costs include the
CO
2
carbon duty (Danish Government duty defined by the L. 182/2024 with proposed levels until 2030
inflated at 2 percent per annum thereafter) and the EU ETS market price (as per Bloomberg forward
curve for 5 years inflated at 2 percent per annum thereafter).

| 2025 | 2026 | 2027 | 2028 | 2029 | 2030
Brent price, real terms ($/bbl) | 65.0 | 65.0 | 65.0 | 65.0 | 65.0 | 65.0
Gas price, real terms (EUR/MWh) | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 | 30.0
EU ETS price, nominal (EUR/mt) | 64.9 | 67.8 | 69.8 | 72.1 | 75.5 | 80.0
Danish carbon duty, nominal |  |  |  |  |  |
(DKK/mt) | 85.2 | 153.3 | 221.4 | 289.6 | 357. 8 | 425.9
USD:DKK | 6.60 | 6.60 | 6.60 | 6.60 | 6.60 | 6.60
EUR:DKK | 7.45 | 7.45 | 7.45 | 7.45 | 7.45 | 7.45
USD:EUR | 0.89 | 0.89 | 0.89 | 0.89 | 0.89 | 0.89

Changes in commodity prices, CO
2
costs and other cost estimates can alter reserve estimates and,
consequently, the economic cut-off, which may impact the timing of decommissioning and removal
activities. Reserve estimates can also change due to updated production and reservoir information.
Future changes to proven and probable oil and gas reserves can significantly affect depreciation,
the life of the field, impairment of licence-related assets and operating results.
There is also an independent assessment of reserves performed by an external party. The difference
between the 2P external reserves disclosed in the ‘Supplementary oil and gas information’ and those
used for financial reporting purposes relates primarily to projects that are in the category ‘justified for
development’ as only approved projects are included for financial reporting purposes. The reserves
prepared as at 31 December 2024 form the basis for depreciation for 2025.
d) Asset retirement obligation
The production of oil and gas is subject to statutory requirements for decommissioning and removal
obligations once production ceases. Provisions for these future decommissioning and removal
expenditures must be recognised when the statutory requirement arises. These costs are often
incurred in the future, and there is significant uncertainty regarding the scale and complexity of the
decommissioning and removal process. Additionally, these activities require approval from the
DUC Joint Venture partners and the Danish Energy Agency.
Estimated future costs are based on current costs adjusted for inflation, known decommissioning
and removal technology, and the anticipated decommissioning and removal date. These costs are
discounted to their present value using a risk-free rate adjusted for credit margin. Changes in one
or more of these factors could result in adjustments to the decommissioning and removal liabilities.
See note 22 Asset retirement obligations for further details and sensitivities and information on the
Group’s assumptions in note 3.2(c).
e) Impairment of fixed assets
The Group has at 31 December 2024 not identified any impairment indicators. Impairment indicators
include internal and external factors such as change in commodity prices, production / cost estimates
against actual performance, and climate-related risks impact on costs, among others. The Group
has relied on its market capitalisation to arrive at an estimate of the headroom of the DUC CGU
should an impairment review be required. If the market capitalisation should decrease materially
below its carrying amount of equity, this could give rise to impairment trigger of the DUC CGU. For the
CarbonCuts CGU, the Group has recognised a goodwill from the acquisition of CarbonCuts and due
to materiality, no impairment test has been performed.
If the Group should have to estimate the recoverable amount based on estimated future cash flows,
it would have to make significant judgements which could lead to significant estimation uncertainty.
Estimation of future cash flows require long-term assumptions concerning a number of often volatile
economic factors, including future oil and gas prices, CO
2
taxes, production, commercially depletable
reserves, levels of capex and operational costs, currency exchange rates and discount rates.
Information on the Group’s assumptions are included in note 3.2 (c).
The Group has recognised a goodwill from the acquisition of CarbonCuts. CarbonCuts is in the
process of exploring the possibility of establishing a safe and permanent CO
2
storage facility and
related costs are to a large extent expensed. We note that after the acquisition, CarbonCuts’ was
awarded a licence to explore CO
2
storage possibilities onshore in Denmark and current carrying value
and estimated recoverable amount of goodwill of USD 2.1 million are considered immaterial.
No impairment was recognised.
See also note 1.7 Impairment of non-financial assets and note 12 Impairments related to impairment
reviews and note 11 Property, plant and equipment for impairment.
4 Climate risk management
4.1 Climate risk factors
As an oil and gas company, BlueNord acknowledge the growing significance of climate-related
risks on BlueNord’s operations within the DUC. The regulatory landscape in which the DUC operates
is evolving, with increased emphasis on reducing greenhouse gas (GHG) emissions. Denmark
is committed to achieving carbon neutrality by 2050 (phasing out of oil and gas), aligning with the
European Union’s Green Deal and international climate agreements. BlueNord’s licence in the DUC
sole concession will expire in 2042.
Notes continued
99 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
4 Climate risk management continued
The Company recognises that climate-related risks and the global transition towards a low-carbon
economy presents both challenges and opportunities that could impact our financial performance,
asset valuation and future strategy. As part of the risk management framework, the Company
assesses climate risks under two categories:
• Transition risk – risk arising from the shift to lower carbon economy, which includes regulatory
changes, market shifts and evolving stakeholder expectations.
• Physical risk – risk arising from climate change impacts which could affect BlueNord’s production
and infrastructure and value chain.
The Company integrates climate scenario analysis into its financial planning using frameworks such as
the Task Force on Climate-related Financial Disclosures (TCFD).
Transition risk
Policy and regulatory changes
Denmark has one of the most ambitious climate policies in Europe. BlueNord’s oil and gas operations
are subject to the EU Emission Trading System (EU ETS). The EU ETS is based on a ‘cap and trade’
principle whereby the cap (expressed in emissions allowances) refers to the limit set on the maximum
amount of GHG emissions that can be emitted. As a non-operator and a JV partner within the DUC,
BlueNord relies on the Operator (TotalEnergies) to purchase and manage EU ETS allowances for the
emissions relating to BlueNord’s share of the DUC operations. Although BlueNord is permitted to self-
manage the purchase of its net allowances, these purchases are still to be handed over to the Operator
who will manage the surrendering of allowances every September of the following year for emissions
reported in the current year.
As part of the Green Tax Reform agreed in 2022, Denmark has also introduced a carbon tax (phased
in from 2025 to 2030) on GHG emissions from activities covered by the EU ETS Directive. This
CO₂ tax is calculated based on the number of emission allowances surrendered each year. The
introduction of this CO₂ tax on offshore oil and gas production and participation in addition to the costs
incurred under the EU ETS scheme will significantly increase compliance costs which directly affects
operational expenses and therefore impact profitability.
Additionally, the Danish Climate Act and the North Sea Agreement may impose stricter regulatory
compliance. Stricter environmental laws, such as limitations on offshore drilling, methane emissions
regulations, and potential fossil fuel phase-out policies may impact the Company’s asset valuation and
future investment plans. This may also influence borrowing terms.
In 2024, the Net-Zero Industry Act (NZIA) was adopted by the European Parliament and Council,
establishing a framework of measures for strengthening Europe’s net-zero technology ecosystem. Article
23 of the Act establishes a contribution in CO
2
injection capacity in a storage site located in an EU member
state countries for oil and gas producers in proportion to their production level over the period 1 January
2020 to 31st December 2023. While injection capacity contribution has not yet been specified by the EU
Commissions, BlueNord will likely be in scope for contributing to the EU’s ambition of an annual injection
capacity of 50 million tonnes of CO
2
by 2030. BlueNord, via its wholly-owned subsidiary CarbonCuts,
is currently undergoing an exploration programme in the onshore Danish Ruby CCS licence following
exploration licence award in 2024. The development of the Ruby CO
2
store could form part of the NZIA
conformance plan for BlueNord. Until the project is declared feasible and commercially viable, project’s
costs are expensed to the income statement and minimal asset value is attributed to the project now.
BlueNord will continue to monitor the development of the requirements under NZIA regulation such as
clarity on injection contribution, to allow us to better analyse its impact on the Company going forward.
Market demand shifts and transition to lower emissions technology
The accelerating transition to renewable energy sources may reduce long-term demand for oil and
gas, affecting our revenue forecasts and asset valuations. Denmark and the EU are shifting towards
renewable energy sources, such as offshore wind, solar, and biofuels while reducing reliance on fossil
fuels. This trend could reduce long-term demand for oil and gas production from the Danish North Sea,
which could affect reserves and resources estimation.
The rapid advancement of carbon capture, utilisation, and storage (CCUS), green hydrogen, and
offshore wind projects could accelerate the transition away from fossil fuels. Denmark’s Energy Island
initiative and investments in Power-to-X technology further reinforce this trend.
Stakeholder expectations and reputational risks
Investors, lenders and regulators are increasingly integrating Environmental, Social, and Governance
(ESG) factors into financing decisions. Additionally, climate litigation risks are growing, particularly
regarding environmental responsibilities under Danish and EU law.
Mitigation actions
• Proactive engagement with the government and regulatory bodies ensuring compliance with new
climate requirements.
• Continuous assessment on emission reduction initiatives and other potential renewable projects
within the DUC partnership.
• Perform internal sensitivity analysis and scenario testing, taking into account climate risk factors, at
a company and project level.
• Include climate risk considerations within investment decisions and working closely within the DUC
partnership to align the DUC operations with evolving policies.
• Diversifying the Company’s portfolio by investing in Carbon, Capture and Storage (CCS) projects
through its wholly-owned subsidiary CarbonCuts.
• Strengthening ESG disclosures to maintain investor confidence and access to sustainable financing.
Physical risk
Acute and chronic physical risk
Denmark sometimes unfavourable weather conditions could disrupt onshore and offshore operations,
impact infrastructure integrity, and cause supply chain logistics and production downtime. Longer-
term shifts in climate patterns like changing frequency of chronic heat waves or cold waves, sea level
rise, and increased water stress could impact operations in Denmark and in the value chain.
Notes continued
100 BlueNord
4 Climate risk management continued
Mitigating actions
• Active engagement and monitoring on Health, Safety and Environmental (HSE) related topics within
the DUC operations
• Integrating sustainability consideration within project planning
Financial impact and reporting considerations
These climate-related risks may have financial implications across the Company’s asset valuation,
operational costs and other financial obligations. The Company integrates climate risk into its financial
reporting and performs climate risk assessments on the below financial reporting elements:
• Production expenses on environmental liabilities (Note 6): Carbon costs are accounted for under
production expenses. Changes in carbon regulations are continuously monitored to ensure
compliance. There is also an option for the Company to reduce its exposure to volatile carbon prices
by actively purchasing carbon allowances. This has not been exercised for the 2024 obligations
where BlueNord still relies on the Operator to manage its share as part of the DUC JV partnership.
• Impairments (note 12): Climate factors are among the triggers considered during impairment testing.
This includes consideration of the carbon price volatility and impact from potential introduction
of new carbon regulations that could lead to higher incurred operational expenses.
• Financial income and expense (Note 13): The Company’s current RBL financing terms include
a link to ESG performance affecting debt pricing however the impact is considered immaterial.
Other climate related risks are integrated into interest rate sensitivity analysis for the Company’s
debt obligations such as a potential increase in financing costs for oil and gas financing as the
industry shifts towards stricter green targets. While this does not apply in the short-term due
to the fixed rates on existing debt, it offers insights into potential increased interest exposure
over the longer-term.
• Asset retirement obligations (Note 22): Climate factors may influence costs estimates and
regulatory developments affecting decommissioning obligations. The impact on provisioning has
been disclosed related to the impact of a five-year acceleration of cease of production of fields
within the DUC hubs, due to low economics driven by higher climate-related costs.
• Reserves estimates (Note 3 and Supplementary Note): Denmark’s commitment to achieving carbon
neutrality by 2050 may have an impact on reserves estimates, driven by earlier cessation of production.
For context, the DUC licence expires in 2042, and Denmark has committed to stopping oil and gas
production by 2050 under the Danish North Sea Agreement (NSA). This suggests a reduced risk
of early production shutdown when seen in the light of the various possible scenarios for oil and gas
demand in the future as the energy transition takes place and offers greater flexibility to adjust to
evolving market conditions or shifts in global energy demand. Given this, further climate risk sensitivity
analysis is not considered necessary by the Company in this case. As stated earlier in note 3.2(c),
changes in commodity prices, CO
2
costs and other cost estimates can also alter reserve estimates and,
consequently, the economic cut-off, which may impact the timing of decommissioning and removal
activities and as such future changes to proven and probable oil and gas reserves can significantly
affect depreciation, the life of the field, impairment of licence-related assets, and operating results.
5 Revenue

USD million | 2024 | 2023
Sale of oil | 507.3 | 485.6
Sale of gas and NGL | 191.4 | 306.0
Other income | 3.6 | 3.5
Total revenue | 702.3 | 795.0
Oil – lifted volumes (mmbbl) | 6.82 | 7.16
Effective oil price USD/bbl | 74.4 | 67.8
Gas – lifted volumes (mmboe) | 2.58 | 2.20
Effective gas price EUR/MWh | 40.4 | 75.7
Effective gas price USD/boe | 74.2 | 139.1

In 2024 sale of oil amounted to USD 507.3 million and sale of gas amounted to USD 191.4 million,
realised prices were USD 74.4 per bbl of oil and USD 74.2 per boe gas lifted during the year, adjusted
for settlement of price hedges in place with financial institutions.
During 2024, BlueNord recognised the settlement of price hedges that were put in place with financial
institutions in the market as revenue, when these price hedges match the physical sale of oil and gas.
Price hedges in excess of actual liftings are treated as financial income or expenses based on the
required accounting treatment for these instruments during the period. For the year 2024 only a minor
part of the price hedges exceeded the physical sale of oil and were recognised as financial cost.

Revenue per customer | 2024 | 2023
Shell Trading International | 69.4% | 75.8%
Ørsted Salg & Service AS | 18.6% | 17.4%
Shell Energy Europe Limited | 3.4% | 3.2%
BP Oil International | 9.1% | –
Macquarie Bank Europe | 2.4% | 2.1%
Deutsche Bank | 0.3% | –
BNP Paribas | 0.2% | 2.4%
ING 1) | -3.4% | –
Natixis | – | 6.4%
Crossbridge Energy A/S | – | 0.2%
Lloyds Bank Corporate Markets PLC 1) | – | -2.2%
SEB Skandinaviska Enskilda Banken AB 1) | – | -2.3%
Commonwealth Bank 1) | – | -3.0%
Total revenue | 100.0% | 100.0%

1) Settlement of commodity hedges in place with financial institutions.
Notes continued
101 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Notes continued
6 Production expenses

USD million | 2024 | 2023
Direct field opex | (200.4) | (232.4)
Tariff and transportation expenses | (46.3) | (34.9)
Environmental costs 1) | (12.6) | (11.8)
Production general and administrative | (14.7) | (16.8)
Field operating cost | (274.1) | (295.9)
Total produced volumes (mmboe) | 9.2 | 9.1
In USD per boe | (29.9) | (32.5)
Adjustments for: |  |
Concept studies | (1.2) | (6.2)
Change in inventory position | (1.3) | (6.7)
Over/under-lift of oil and NGL | (8.9) | (6.3)
Insurance and other | (22.6) | (21.9)
Stock scrap | (2.4) | (3.0)
Production expenses | (310.4) | (340.1)

1) Includes cost for CO
2
allowances under the EU ETS scheme. See also note 4 Climate Risk Management.
Production expenses for the year directly attributable to the lifting and transportation to market of
BlueNord’s oil and gas production is in total USD 274.1 million, which equates to USD 29.9 per boe
produced during 2024 (2023: USD 32.5 per boe produced). During 2024 BlueNord has observed
that the result of conducting the ‘Well & Reservoir Optimization Management’ (WROM) increases
the reserves which has led to the conclusion that this cost should be capitalised. This has no cash
effect but has decreased the direct field opex for 2024. Due to the start-up of Tyra, transportation cost
has increased compared to previous year. Due to uncertainties related to production forecast, cost
is further influenced by increased penalties as gas nomination has been challenging. Penalties are
imposed if actual production deviates from nominated volumes.
7 Exploration and evaluation expenses

USD million | 2024 | 2023
Acquisition of seismic data, analysis and general G&G costs | (5.8) | –
Other exploration and evaluation expenses | (0.1) | (1.4)
Total exploration and evaluation expenses | (5.9) | (1.4)

8 Personnel expenses

USD million | Note | 2024 | 2023
Salaries |  | (13.0) | (10.3)
Social security tax |  | (4.0) | (1.4)
Pension costs | 21 | (0.7) | (0.7)
Costs relating to share-based payments |  | (1.6) | (5.2)
Other personnel expenses |  | (0.4) | (0.4)
Total personnel expenses |  | (19.7) | (18.0)
Average FTE |  | 40.2 | 36.2
Average number of employees |  | 43.3 | 38.3

Long-term performance share programme
In 2022, an annual long-term performance share programme was implemented with effect from
1 January 2022, replacing the Share Option Programme as BlueNord’s LTI plan for executives and
employees. The programme applies to all permanent employees. More details on the long-term
performance share programme see the Executive Remuneration Report for 2024.
Key management personnel compensation
Key management personnel compensation comprises the following:

USD 1 000 | 2024 | 2023
Short-term employee benefits | 3,160 | 2,239
Post-employment benefits | 122 | 98
Share-based payments | 830 | 787
Total remuneration to key management | 4,112 | 3,124

Please see the Executive Remuneration Report 2024 for compensation to key management and
Board of Directors in the period 2020-2024.
9 Other operating expenses

USD million | 2024 | 2023
Consultant fees | (8.4) | (9.4)
Other operating expenses | (4.0) | (4.7)
Total other operating expenses | (12.4) | (14.1)

USD | 100 | 0, excl. VAT | 2024 | 2023
Auditor’s fees |  |  | (590.4) | (580.0)
Other assurance service |  |  | – | (6.9)
Other service |  |  | (93.1) | (86.1)
Total audit fees |  |  | (683.6) | (673.0)

102 BlueNord
10 Goodwill and intangible assets
Goodwill and intangible assets at 31 December 2024

| Capitalised |  |  |
| exploration |  |  |
USD million | expenditures | Licence | Goodwill | Total
Book value 31.12.23 | 1.9 | 149.7 | – | 151.6
Acquisition costs 31.12.23 | 1.9 | 186.0 | – | 187.9
Additions | – | – | 2.2 | 2.2
Currency translation adjustment | – | – | (0.1) | (0.1)
Acquisition costs 31.12.24 | 1.9 | 186.0 | 2.1 | 190.1
Accumulated depreciation, amortisation and write-down 31.12.23 | – | (36.3) | – | (36.3)
Depreciation/amortisation | – | (6.7) | – | (6.7)
Accumulated depreciation, amortisation and write-down 31.12.24 | – | (43.0) | – | (43.0)
Book value 31.12.24 | 1.9 | 143.0 | 2.1 | 147.0

Goodwill and intangible assets at 31 December 2023

| Capitalised |  |  |
| exploration | Conceptual |  |
USD million | expenditures | studies | Licence | Total
Book value 31.12.22 | 1.8 | 1.9 | 156.6 | 160.4
Acquisition costs 31.12.22 | 1.8 | 1.9 | 186.0 | 189.8
Additions | 0.1 | – | – | 0.1
Reclassified to operating expenses | – | (1.9) | – | (1.9)
Acquisition costs 31.12.23 | 1.9 | – | 186.0 | 187.9
Accumulated depreciation and write-downs |  |  |  |
31.12.22 | – | – | (29.4) | (29.4)
Depreciation/amortisation | – | – | (6.9) | (6.9)
Accumulated depreciation and write-downs |  |  |  |
31.12.23 | – | – | (36.3) | (36.3)
Book value 31.12.23 | 1.9 | – | 149.7 | 151.6

11 Property, plant and equipment
Property, plant and equipment at 31 December 2024

| Asset under | Production | Other |
USD million | construction | facilities | assets | Total
Book value 31.12.23 | 1,422.8 | 1,003.7 | 1.4 | 2,427.9
Acquisition costs 31.12.23 | 1,422.8 | 1,491.5 | 3.1 | 2,917.4
Reclassification from AUC to production facilities 1) | (1,401.5) | 1,401.5 | – | 0.0
Additions | 31.3 | 185.5 | 0.1 | 216.9
Acquisition of subsidiary | – | – | 0.0 | 0.0
Sale of asset | – | 19.4 | (0.0) | 19.4
Revaluation abandonment assets | – | 37.1 | – | 37.1
Disposals | – | – | (0.0) | (0.0)
Currency translation adjustment | – | (0.1) | (0.1) | (0.2)
Acquisition costs 31.12.24 | 52.6 | 3,135.0 | 3.1 | 3,190.7
Depreciation and write-downs 31.12.23 | – | (487.9) | (1.7) | (489.5)
Depreciation | – | (127.0) | (0.2) | (127.2)
Depreciation of capitalised borrowing cost | – | (1.1) | – | (1.1)
Sale of asset, reversal depreciation | – | – | 0.0 | 0.0
Acquisition of subsidiary | – | – | (0.0) | (0.0)
Disposals | – | – | 0.0 | 0.0
Currency translation adjustment | – | 0.0 | 0.0 | 0.1
Depreciation and write-downs 31.12.24 | – | (615.9) | (1.9) | (617.7)
Book value 31.12.24 | 52.6 | 2,519.1 | 1.3 | 2,573.0

1) Mainly related to Tyra.
Notes continued
103 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
11 Property, plant and equipment continued
Property, plant and equipment at 31 December 2023

| Asset under | Production |  |  |
USD million | construction | facilities | Other assets | Total |
Book value 31.12.22 | 1,222.3 | 859.6 | 1.4 | 2,083.3 |
Acquisition costs 31.12.22 | 1,222.3 | 1,252.5 | 3.1 | 2,47 | 7. 9
Sale of assets | – | – | (0.0) |  | (0.0)
Additions | 322.7 | 65.9 | 0.4 |  | 388.9
Reclassification from AUC to production facilities | (122.2) | 122.2 | – |  | –
Reclassification from capex to opex | – | 1.5 | – |  | 1.5
Revaluation abandonment asset | – | 49.4 | – |  | 49.4
Disposal | – | – | (0.3) |  | (0.3)
Currency translation adjustment | – | 0.1 | 0.0 |  | 0.1
Acquisition costs 31.12.23 | 1,422.8 | 1,491.5 | 3.1 |  | 2,917.4
Accumulated depreciation and write-downs |  |  |  |  |
31.12.2022 | – | (392.9) | (1.7) |  | (394.6)
Sale of asset, reversal depreciation | – | – | 0.0 |  | 0.0
Depreciation | – | (94.9) | (0.2) |  | (95.1)
Disposals | – | – | 0.2 |  | 0.2
Currency translation adjustment | – | (0.0) | (0.0) |  | (0.0)
Accumulated depreciation and write-downs |  |  |  |  |
31.12.23 | – | (487.9) | (1.7) |  | (489.5)
Book value 31.12.23 | 1,422.8 | 1,003.7 | 1.4 |  | 2,427.9

12 Impairments
Impairment reviews
See note 1.7 for the accounting policies and note 3.2 (de) for the accounting estimates / assumptions
related to impairment of non-financial assets.
The Group has determined that it has two cash-generating units (CGUs): one for the DUC assets and
one for CarbonCuts.
The Group believes that the market capitalisation is primarily attributable to the DC assets. No impairment
triggers were identified in 2024, and therefore, no impairment tests were required to be done on the
DUUC CGU.
Should the market capitalisation materially decrease below the carrying amount of equity, this could
indicate potential impairment trigger of the DUC CGU. If not positive a value in use calculation will
be calculated and compared to the carrying value of the CGU to determine if there is an impairment
of the DUC CGU.
Although no impairment test was required due to the absence of triggers, the Group is reassured by
the market capitalisation, which continues to show significant headroom as of 31 December 2024 and
2023. The market capitalisation was USD 1,532.5 million and USD 1,281.6 million on 31 December 2024
and 2023, respectively, based on the exchange rates for the US dollar and Norwegian kroner rates at
those times. The carrying amount of equity, was USD 691.8 million and USD 813.6 million on December
31, 2024, and 2023, respectively.
The Group has recognised a goodwill from the acquisition of CarbonCuts. CarbonCuts is in the
process of exploring the possibility of establishing a safe and permanent CO
2
storage facility and
related costs are to a large extent expensed. We note that after the acquisition, CarbonCuts’ was
awarded a licence to explore CO
2
storage possibilities onshore in Denmark and current carrying value
and estimated recoverable amount are considered immaterial and as such no impairment test was
performed. The carrying value of goodwill is USD 2.1 million. No impairment was recognised.
Notes continued
104 BlueNord
13 Financial income and expenses
Financial income

USD million | 2024 | 2023
Total interest income | 15.8 | 17. 8
Value adjustment foreign exchange contract | 0.7 | –
Volume protection true-up | – | 0.6
Extinguishment of bond loans | – | 1.0
Foreign exchange gains | 9.5 | 3.7
Total other financial income | 10.2 | 5.3

Financial expenses

USD million | 2024 | 2023
Interest expenses current liabilities | (0.5) | –
Interest expense from bond loans | (56.2) | (44.9)
Interest expense from bank debt 1) | (76.8) | (51.9)
Less capitalised borrowing cost | – | 78.0
Total interest expenses | (133.0) | (18.9)
Value adjustment of embedded derivatives 2) | (32.1) | (14.1)
Value adjustment interest swap RBL, ineffective part | (0.1) | (0.7)
Value adjustment amortised cost RBL | (5.6) | –
Utilisation of derivatives, ineffective part | (0.7) | (0.1)
Accretion expense related to asset retirement obligations | (54.3) | (49.3)
Extinguishment of bond loans | (22.3) | –
Foreign exchange losses | (5.5) | (12.3)
Other financial expenses | (2.6) | (3.0)
Total other financial expenses | (123.2) | (79.5)
Net financial items | (230.2) | (75.2)

1) Net of the effective part of the realised interest swap, related to RBL facility.
2) Fair value adjustment of the embedded derivatives of the convertible bonds.
3) Change in net present value due to amendment and restatement of the RBL.
Climate-related risk
A sensitivity analysis has been conducted considering the impact of climate-related risks on debt
financing margins. The margin on existing debt balances is fixed, so this risk relates to the potential
impact of an increase in margins upon refinancing in the future. The Company has estimated the
impact of a one-percentage point sensitivity increase (as a proxy of a potential shift in margins) in credit
spreads on outstanding debt balances as of 31 December 2024. This analysis indicates that such an
increase would result in additional interest expense of USD 60 million .
14 Tax
Tax rates
Producers of oil and gas on the Danish continental shelf are subject to the hydrocarbon tax regime
under which, income derived from the sale of oil and gas is taxed at an elevated 64 percent. Any
income deriving from other activities than first-time sales of hydrocarbons is taxed at the ordinary
corporate income rate of currently 22 percent. The 64 percent is calculated as the sum of the ‘Chapter
2’ tax of 25 percent plus a specific hydrocarbon tax (Chapter 3A) of 52 percent, in which the 25 percent
tax payable is deductible. Income generated in Norway and the United Kingdom is subject to regular
corporate tax at 22 percent.
Tax expense

USD million |  |
Income tax in profit/loss (Danish corporate income tax and hydrocarbon tax) | 2024 | 2023
Current tax | (5.4) | (63.3)
Solidarity contribution, current 1) | – | (72.2)
Current tax, prior year 2) | 68.1 | (10.1)
Current tax | 62.7 | (145.5)
Deferred tax | (53.2) | (65.8)
Solidarity contribution, deferred 1) | – | 70.5
Deferred tax, prior year 2) | (68.1) | 7.1
Deferred tax | (121.4) | 11.8
Tax (expense)/income | (58.7) | (133.7)

1) The current tax accrual includes 33 percent ‘solidarity contribution’, the EU-regulated temporary tax to be levied on fossil fuel
companies in 2023 in Denmark. As this contribution may be offset against hydrocarbon tax, the charge does not lead to an increase in
the overall tax percentage applied.
2) Mainly related to tax depreciation of Tyra II included in the tax return for 2023.
Income tax in profit/loss is solely derived from the Group’s activities on the Danish continental shelf, of
which the major part is subject to the elevated 64 percent hydrocarbon tax.

Tax (expense)/income related to OCI | 2024 | 2023
Cash flow hedges | 67.2 | (47.7)
Tax (expense)/income related to OCI | 67.2 | (47.7)

Income tax on OCI is related to the derivatives designated in cash flow hedges. To the extent
derivatives are associated with the sale of oil and gas, result from cash flow hedges is subject to
64 percent hydrocarbon tax.
Notes continued
105 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
14 Tax continued

|  | Hydrocarbon tax 64% | Corporate tax 22% |  |
Reconciliation of nominal to actual tax rate |  | 2024 | 2024 |  | In total
Result before tax | 67.6 |  | (79.6) |  | (12.1)
Expected tax on profit before tax | 43.2 | 64% | (17.5) | 22% | 25.7
Tax effect of: |  |  |  |  |
Prior year adjustment | 0.5 | 1% | (0.4) | 1% | 0.1
Currency changes to tax losses carried |  |  |  |  |
forward in DKK 1) | 53.0 | 78% | – | 0% | 53.0
Investment uplift on capex projects 2) | (51.3) | -76% | – | 0% | (51.3)
Permanent differences 3) | – | 0% | 7.1 | -9% | 7.1
Interest limitation | 11.5 | 17% | – | 0% | 11.5
No recognition of tax assets in Norway |  |  |  |  |
and UK | – | 0% | 12.7 | -16% | 12.7
Tax expense (income) in profit/loss | 56.9 | 84% | 1.8 | -2% | 58.7

1) Impact of changes in USD/DKK exchange rate on loss carried forward as the tax losses are carried forward in DKK.
2) The tax cost in the hydrocarbon tax regime is positively impacted by the 39 percent investment uplift on the Tyra redevelopment project.
3) Mainly related to fair value adjustment of embedded derivatives.

|  | Hydrocarbon tax 64% |  | Corporate tax 22% |
Reconciliation of nominal to actual tax rate, continues |  | 2023 |  | 2022 | In total
Result before tax | 237.2 |  | 6.3 |  | 243.6
Expected tax on profit before tax | 151.8 | 64% | 1.4 | 22% | 153.2
Tax effect of: |  |  |  |  |
Prior year adjustment | 4.2 | 2% | (1.3) | -20% | 2.9
Currency changes to tax losses carried |  |  |  |  |
forward in DKK 1) | (24.6) | -10% | – | 0% | (24.6)
Investment uplift on capex projects 2) | (42.6) | -18% | – | 0% | (42.6)
Permanent differences 3) | 37.9 | 16% | 3.0 | 48% | 40.9
No recognition of tax assets in Norway |  |  |  |  |
and UK | – | 0% | 3.8 | 61% | 3.8
Tax expense (income) in profit/loss | 126.8 | 53% | 7.0 | 110% | 133.7

1) Impact of changes in USD/DKK exchange rate on loss carried forward as the tax losses are carried forward in DKK.
2) The tax cost in the hydrocarbon tax regime is positively impacted by the 39 percent investment uplift on the Tyra redevelopment project.
3) This is related to the portion of interest cost not deductible under the Danish interest limitation rules.

|  | Hydrocarbon tax 64% | Corporate tax 22% |  |
|  | 2024 | 2024 |  | In total
OCI before tax | (98.1) | (23.4) |  | -121.5
Expected tax on OCI before tax | 62.8 | 64% | 5.2 | 22% | 67.9
Tax effect of: |  |  |  |  |
Non-taxable currency translation adjustment | – |  | -0.7 |  | -0.7
Tax in OCI | 62.8 | 64% | 4.5 | 22% | 67.2

|  | Hydrocarbon tax 64% | Corporate tax 22% |  |
|  | 2023 | 2023 |  | In total
OCI before tax | 82.8 |  | (22.7) |  | 60.1
Expected tax on OCI before tax | (53.0) | 64% | 5.0 | 22% | (48.0)
Tax effect of: |  |  |  |  |
Non-taxable currency translation adjustment | – |  | 0.3 |  | 0.3
Tax in OCI | (53.0) | 64% | 5.3 | 22% | (47.7)

Current income tax receivables/(payables) | 2024 | 2023
Corporate tax 22% (Denmark) | (0.8) | (4.6)
Hydrocarbon tax (Denmark) | 11.5 | (73.7)
Hydrocarbon tax for prior years (Denmark) | (8.6) | (12.9)
Solidarity contribution | – | (48.8)
Tax receivables/(payables) | 2.2 | (140.0)

Current income taxes for current and prior periods are measured at the amount that is expected
to be paid to or be refunded from the tax authorities, as at the balance sheet date. Due to the
complexity in the legislative framework and the limited amount of guidance from relevant case law,
the measurement of taxable profits within the oil and gas industry is associated with some degree
of uncertainty. Uncertain tax liabilities are recognised with the probable value if their probability is
more likely than not. Tax receivables of USD 2.2 million, which includes USD 11.5 million actual cash
receivables to be paid in 2025 and USD 9.4 million in provision for uncertain tax positions .
Notes continued
106 BlueNord
14 Tax continued
Deferred tax
Deferred tax is measured at the amount that is expected to result in taxes due to temporary
differences and the value of tax losses.
The recognised deferred tax asset is allocated to the following balance sheet items, all pertaining to
the Group’s activities on the Danish continental shelf:

|  | Effect |  |
|  | recognised | Effect |
USD million |  | in profit/ | recognised |
Deferred tax and deferred tax asset | 31.12.2023 | loss | in OCI | 31.12.2024
Property, plant and equipment | 812.9 | 248.3 | – | 1,061.2
Intangible assets, licences | 29.4 | (14.8) | – | 14.7
Inventories and receivables | 33.8 | (1.3) | – | 32.5
Asset retirement obligation (ARO) | (623.9) | (47.1) | – | (671.1)
Other assets and liabilities | (2.9) | (2.7) | – | (5.6)
Tax loss carryforward, corporate tax (22%) | – | – | – | –
Tax loss carryforward, chapter 2 tax (25%) | (0.1) | (31.2) | – | (31.3)
Tax loss carryforward, chapter 3a tax (52%) | (467.7) | (29.7) | (62.8) | (560.2)
Deferred tax asset, net | (218.5) | 121.4 | (62.8) | (159.8)

|  | Effect | Effect |
USD million |  | recognised in | recognised |
Deferred tax and deferred tax asset | 31.12.2022 | profit/loss | in OCI | 31.12.2023
Property, plant and equipment | 745.9 | 67.0 | – | 812.8
Intangible assets, licenses | 25.1 | 4.3 | – | 29.4
Inventories and receivables | 29.3 | 4.6 | – | 33.8
Asset retirement obligation (ARO) provision | (564.5) | (59.5) | – | (623.9)
Other assets and liabilities | (2.8) | (0.1) | – | (2.9)
Tax loss carryforward, corporate tax (22%) | – | – | – | –
Tax loss carryforward, Chapter 2 tax (25%) | (0.1) | 0.1 | – | –
Tax loss carryforward, Chapter 3a tax (52%) | (471.9) | (28.1) | 32.3 | (467.7)
Deferred tax asset, net | (239.1) | (11.7) | 32.3 | (218.5)

Tax loss carryforwards
Tax losses are recognised in accordance with the expected utilisation hereof in subsequent income
years based on the current business outlook and economic projections.
Due to the limited taxable activity in UK and Norway, corporate tax losses in these jurisdictions are
not capitalised.
Tax losses in Denmark and UK under the hydrocarbon tax regime may be carried forward indefinitely
and the utilisation is not subject to an annual cap. Losses are carried forward in Danish kroner and
British pound.

Tax losses carried forward, Denmark. In million DKK | 2024 | 2023
Corporate tax (22%) | – | –
Chapter 2 Hydrocarbon tax (25%) | 890.7 | –
Chapter 3a Hydrocarbon tax (52%) | 7,488.1 | 5,523.2

Tax losses carried forward, Norway. In million NOK | 2024 | 2023
Corporate tax Norway (22%) | 1,208.3 | 1,204.2

Tax losses carried forward, UK. In million GPB/USD | 2024 1) | 2023
Trade losses, UK (hydrocarbon s 330 (2)), USD | 78.0 | 78.0
Trade losses, UK (hydrocarbon), USD | 100.1 | 100.1
Pre-trading revenue expenditure, UK (hydrocarbon), GBP | 1.3 | 1.3
Pre-trading capital expenditure, UK (hydrocarbon), GBP | 40.2 | 40.2

1) The amounts are based on the latest tax return for income year 2022.
Notes continued
107 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
15 Earnings per share
Earnings per share are calculated by dividing the profit attributable to ordinary shareholders of the
parent company by the weighted average number of ordinary shares in issue during the year.

USD million | 2024 |  |  |  | 2023
Profit (loss) attributable to ordinary shareholders |  |  |  |  |
from operations | (70.8) |  |  |  | 109.8
Adjustment amortisation convertible bond loans | 31.3 |  |  |  | 27.0
Adjustment fair value embedded derivatives | 32.1 |  |  |  | 14.1
Profit (loss) basis for fully diluted shareholders |  |  |  |  |
from operations | (7.3) |  |  |  | 150.9
Number of shares outstanding at the beginning of the year | 26,105,328 |  |  |  | 25,571,262
Issue of new share | 292,791 |  |  |  | –
Sale of treasury shares | 100,521 |  |  |  | 36,641
Conversion part of convertible bond | – |  |  |  | 497,425
Number of shares outstanding at the end of the year | 26,498,640 |  |  |  | 26,105,328
Weighted average number of shares (basic) | 26,318,827 |  |  |  | 26,043,859
Adjustment convertible bond loan 1) | 4,803,885 | 4, | 8 | 09 | ,74 3
Adjustment option schemes | – |  |  |  | 378,868
Weighted average number of shares (diluted) | 31,122,712 |  |  |  | 31,232,470
Earnings per share in USD | (2.7) |  |  |  | 4.2
Earnings per share in USD diluted | (2.7) |  |  |  | 4.2

1) The BNOR15 convertible bond loan is converted to number of shares by dividing the principal amount at year end (USD 247.1 million,
2023: USD 228,4 million) with the strike price as this is less favourable (51.4 USD/share, 2023 converted by the conversion price as this
was less favourable: 47.5 USD/share). The conversion price is 99 percent of the volume-weighted average price (VWAP) for the last 20
days (606.5 NOK/share, 2023: 483.1 NOK/share) converted to USD by using the closing rate at year end (11.35 NOK/USD, 2023: 10.17
NOK/USD).
16 Non-current receivables, trade receivables and other current assets

USD million | 2024 | 2023
Non-current assets |  |
Convertible loan CarbonCuts | – | 1.1
Loan CarbonCuts | – | 2.6
Total non-current receivables | – | 3.7
Current assets |  |
Trade receivables | 27.9 | 59.9
Under-lift of oil/NGL | – | 2.6
Prepayments | 9.5 | 24.8
Other receivables | 1.6 | 1.4
Total trade receivables and other current receivables | 39.0 | 88.7

Aging analysis of trade receivables on 31 December 2024

|  |  |  |  | Past due |  |
USD million | Total | Not past due | > 30 days | 30-60 days | 61-90 days | 91-120 days | > 120 days
Trade receivables | 27.9 | 27.9 | – | – | – | – | –
Total | 27.9 | 27.9 | – | – | – | – | –

Aging analysis of trade receivables on 31 December 2023

|  |  |  |  | Past due |  |
USD million | Tot al | Not past due | > 30 days | 30-60 days | 61-90 days | 91-120 days | > 120 days
Trade receivables | 59.9 | 59.9 | – | – | – | – | –
Total | 59.9 | 59.9 | – | – | – | – | –

17 Inventories

USD million | 2024 | 2023
Product inventory, oil | 13.7 | 15.0
Other stock (spares and consumables) 1) | 42.1 | 39.7
Total inventories | 55.8 | 54.7

1) As of 31 December 2024 there is no provision for obsolete stock.
Notes continued
108 BlueNord
18 Restricted bank deposits, cash and cash equivalents

USD million | 2024 | 2023
Non-current assets |  |
Restricted bank deposits pledged as security for abandonment obligation |  |
related to Nini/Cecilie | 61.5 | 64.3
Restricted bank deposits pledged as security for cash call obligations towards |  |
TotalEnergies 1) | – | 149.6
Total non-current restricted bank deposits | 61.5 | 213.9
Current assets |  |
Unrestricted cash and cash equivalents | 250.6 | 166.7
Restricted bank deposits pledged as security for cash call obligations towards |  |
TotalEnergies 1) | 157. 2 | –
Restricted bank deposits 2) | 0.1 | 0.1
Total current cash and cash equivalents | 407.9 | 166.9
Total bank deposits | 469.4 | 380.7

1) BlueNord has made a USD 140 million bank deposit into a security account to secure future requests for anticipated payments related to
capital and operating expenditures in accordance with the security agreement with TotalEnergies E&P Denmark A/S as Operator of the
DUC. No further transfer to the security account will be made, except that interest earned will be accrued in the account.
2) Tax Withholding Account.
19 Financial instruments
19.1 Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method.
The different levels have been defined as follows:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3 Inputs for the asset or liability that are not based on observable market data.
On 31.12.2024

USD million | Level 1 | Level 2 | Level 3 | Total
Assets |  |  |  |
Financial assets at fair value hedging instruments |  |  |  |
– Derivative instruments price hedge | – | 14.2 | – | 14.2
Total assets | – | 14.2 | – | 14.2
Liabilities |  |  |  |
Financial liabilities at fair value through profit or loss |  |  |  |
– Embedded derivatives convertible bond BNOR15 1 | – | – | 85.1 | 85.1
Financial liabilities at fair value hedging instruments |  |  |  |
– Derivative instruments price hedge | – | 87.4 | – | 87.4
Total liabilities | – | 87.4 | 85.1 | 172.5

1) For more information see section 18.2, 18.3 and note 2.3
On 31.12.2023

USD million | Level 1 | Level 2 | Level 3 | Tot al
Assets |  |  |  |
Financial assets at fair value through profit or loss |  |  |  |
– Derivative instruments interest swap, ineffective part | – | 1.2 | – | 1.2
Financial assets at fair value hedging instruments |  |  |  |
– Derivative instruments interest swap | – | 20.4 | – | 20.4
– Derivative instruments price hedge | – | 64.1 | – | 64.1
Total assets | – | 85.7 | – | 85.7
Liabilities |  |  |  |
Financial liabilities at fair value through profit or loss |  |  |  |
– Embedded derivatives convertible bond BNOR15 | – | – | 53.0 | 53.0
Financial liabilities at fair value hedging instruments |  |  |  |
– Derivative instruments price hedge | – | 39.2 | – | 39.2
Total liabilities | – | 39.2 | 53.0 | 92.2

Notes continued
109 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
19 Financial instruments continued
19.2 Financial instruments by category
On 31.12.24

|  | Assets |  |
| Financial | at fair value |  |
| assets at | through | Hedging |
| amortised | profit or | instruments |
USD million | cost | loss | at fair value | Total
Assets |  |  |  |
Derivative instruments price hedge | – | – | 14.2 | 14.2
Trade receivables and other current assets | 39.0 | – | – | 39.0
Restricted bank deposits | 218.8 | – | – | 218.8
Cash and cash equivalents | 250.6 | – | – | 250.6
Total | 508.4 | – | 14.2 | 522.6

|  | Liabilities |  |
| Financial | at fair value |  |
| liabilities at | through | Hedging |
| amortised | profit or | instruments |
USD million | cost | loss | at fair value | Total
Liabilities |  |  |  |
Derivative instruments price hedge | – | – | 87.4 | 87.4
Embedded derivatives convertible bond BNOR15 1) | – | 85.1 | – | 85.1
Convertible bond loan | 233.1 | – | – | 233.1
Senior unsecured bond loan | 303.5 | – | – | 303.5
Reserve-based lending facility | 834.3 | – | – | 834.3
Trade payables and other current liabilities | 99.4 | – | – | 99.4
Total | 1,470.4 | 85.1 | 87.4 | 1,642.9

1) For more information see section 18.1, 18.3 and note 2.3.
On 31.12.23

| Financial | Assets |  |
| assets at | at fair value | Hedging |
| amortised | through | instruments |
USD million on 31.12.23 | cost | profit or loss | at fair value | Total
Assets |  |  |  |
Convertible loan CarbonCuts | 1.1 | – | – | 1.1
Loan CarbonCuts | 2.6 | – | – | 2.6
Derivative instruments interest swap | – | – | 21.6 | 21.6
Derivative instruments price hedge | – | – | 64.1 | 64.1
Trade receivables and other current assets | 88.7 | – | – | 88.7
Restricted bank deposits | 214.0 | – | – | 214.0
Cash and cash equivalents | 166.7 | – | – | 166.7
Total | 473.1 | – | 85.7 | 558.8

| Financial | Liabilities |  |
| liabilities at | at fair value | Hedging |
| amortised | through | instruments |
USD million | cost | profit or loss | at fair value | Total
Liabilities |  |  |  |
Derivative instruments price hedge | – | – | 39.2 | 39.2
Embedded derivatives convertible bond BNOR15 | – | 53.0 | – | 53.0
Convertible bond loans | 201.7 | – | – | 201.7
Senior unsecured bond loan | 169.1 | – | – | 169.1
Reserve-based lending facility | 820.8 | – | – | 820.8
Trade payables and other current liabilities | 125.3 | – | – | 125.3
Total | 1,316.9 | 53.0 | 39.2 | 1,409.1

The tables below show the payment structure for the Company’s financial commitments,
based on undiscounted contractual payments:

| Less than |  |  |  |
31.12.24 | 1 year | 1-2 years | 2-5 years | Over 5 years | Tot al
Non-derivative financial liabilities: |  |  |  |  |
BNOR15 1) | – | – | – | – | –
BNOR16 | 28.5 | 28.5 | 385.5 | – | 442.5
Reserve-based lending facility | 83.8 | 86.2 | 1,036.3 | – | 1,206.3
Trade creditors and other liabilities | 99.4 | – | – | – | 99.4
Derivative financial liabilities: |  |  |  |  | –
Derivatives 1) | 64.3 | 22.0 | 1.0 | – | 87.4
Total as at 31.12.24 | 276.1 | 136.7 | 1,422.9 | – | 1,835.6

| Less than |  |  |  |
31.12.23 | 1 year | 1-2 years | 2-5 years | Over 5 years | Tot al
Non-derivative financial liabilities: |  |  |  |  |
BNOR15 1) | – | – | – | – | –
BNOR16 | – | – | 175.0 | – | 175.0
Reserve-based lending facility | 125.0 | 275.0 | 450.0 | – | 850.0
Trade creditors and other liabilities | 125.3 | – | – | – | 125.3
Derivative financial liabilities: |  |  |  |  | –
Derivatives 1) | 35.9 | 3.2 | – | – | 39.2
Total as at 31.12.24 | 286.2 | 278.2 | 625.0 | – | 1,189.4

1) Any redemption and repurchase of bonds are acted by BlueNord as Issuer. The Bondholders will have the right of a mandatory
redemption but only in a case of a Change of Control event (which will be notified by BlueNord). In the table it is assumed that it will
be no cash payments on BNOR15 and the related embedded derivative.
Notes continued
110 BlueNord
19 Financial instruments continued
19.3 Financial instruments — fair values
Set out below is a comparison of the carrying amounts and fair value of financial instruments on
31 December 2024:

| Total amount | Carrying | Fair
USD million | outstanding 1) | amount | value
Financial assets |  |  |
Derivative instruments price hedge |  | 14.2 | 14.2
Trade receivables and other current assets |  | 39.0 | 39.0
Restricted bank deposits |  | 218.8 | 218.8
Cash and cash equivalents |  | 250.6 | 250.6
Total |  | 522.6 | 522.6
Financial liabilities |  |  |
Derivative instruments price hedge |  | 87.4 | 87.4
Embedded derivative convertible bond BNOR15 2) |  | 85.1 | 85.1
Convertible bond loans | 247.1 | 233.1 | 162.0
Senior unsecured bond loan | 300.0 | 303.5 | 300.0
Reserve-based lending facility | 880.0 | 834.3 | 880.0
Trade payables and other current liabilities |  | 99.4 | 99.4
Total | 1,427.1 | 1,642.9 | 1,613.9

1) Total amount outstanding on the bonds and under the RBL facility.
2) For more information see section 19.1, 19.2 and note 2.3.
The RBL facility is measured at amortised cost. Transaction costs are deducted from the amount
initially recognised and are expensed over the period during which the debt is outstanding under the
effective interest method. The capital outstanding is USD 880 million on 31 December 2024.
The senior unsecured bond loan is measured at amortised cost; a total of USD 11.5 million in
transaction costs are deducted from the amount initially recognised.
The BNOR15 instrument has been determined to contain embedded derivatives which are accounted
for separately as derivatives at fair value through profit or loss, while the loan element subsequent to
initial recognition is measured at amortised cost, transaction costs are included in the amortised cost.
The embedded derivative is valued on an option valuation basis, the carrying value as on 31 December
2024 was USD 85.1 million. The assumptions in establishing the option value as on 31 December 2024
are shown below.
The following table list the inputs to the model used to calculate the fair value of the embedded derivatives:

BNOR15 |  | 2024
Valuation date | (date) | 31 Dec 24
Agreement execution date | (date) | 30 Dec 22
Par value of bonds | (USD) 247,067,145
Reference share price at time of agreement | (NOK) | 413
Share price at 31.12.2024 | (NOK) | 657
Fair value at grant date | (USD) | 38,928,552
Fair value at 31.12.2024 | (USD) | 85,139,366
PIK interest rate | (%) | 8.00%
Expected remaining life | (years) | 1.0
Number of options | (#) | 4,803,885
Conversion price | (NOK) | 537
Fixed FX rate of agreement | (USD:NOK) | 10.440
Risk-free rate (based on government bonds) | (%) | 3.87%
Expected volatility | (%) | 42.62%
Model used | Black – Scholes – Merton |

19.4 Hedging
The Group actively seeks to reduce the market-related risks it is exposed to including, (i) commodity
prices, (ii) market-linked floating interest rates and (iii) foreign exchange rates.
The Company has a rolling hedge requirement under its newly refinanced RBL facility based on a
minimum level of production corresponding to the RBL’s production forecast. The requirement is for
the following volumes and time periods: (i) Oil: Year 1 at 50 percent and Year 2 at 40 percent; (ii) Gas:
Season 1 at 50 percent, Season 2 at 50 percent, Season 3 at 40 percent and Season 4 at 20 percent
(seasons being the ensuing six-month seasons, with a season being October to March or April to
September). The Company’s hedges are compliant with this requirement. Currently all the Company’s
commodity price hedging arrangements are a mixture of swaps and options.
The Company entered a USD 1.0 billion swap transaction with a group of banks to fix the Company’s
floating interest rate exposure under its RBL facility from 01 November 2021 to 30 June 2024. As a
result, the Company paid interest on its RBL cash drawings equal to 0.4041 percent plus the applicable
margin until the expiry of the hedge contracts. As the hedge terminated in June 2024, there were no
further interest hedge in place as per 31 December 2024.
In 2024 the Company entered foreign exchange hedges to secure fixed USD to DKK exchange
rates at a nominal amount of USD 71.5 million equivalent to DKK 495 million, for selected payments in
relation to taxes in 2024, VAT and cash calls related to the Company’s forecast cash-flows. All foreign
exchange hedges entered into in 2024 have all now matured as at 31 December 2024.
Notes continued
111 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
19 Financial instruments continued
Hedge accounting is applied to all the Company’s hedging arrangements. To the extent more than 100
percent of the market-related risk is hedged, the portion above 100 percent is considered ineffective,
and the value adjustment is treated as a financial item in the Income Statement. In 2024, most of the
Company’s arrangements in relation to commodity prices were effective, the part that exceeded
the physical sale of oil was recognised as a financial cost. Time value related to commodity hedging
arrangements is considered insignificant and generally the valuation of the instruments do not take
into consideration the time value. During Q2 2024, the Company’s interest rate hedge above the drawn
amount of the RBL at the time (USD 880 million drawn against the hedged transaction value at USD
900 million) was considered ineffective and the value adjustment was treated as a financial item in the
Income Statement. No part of the foreign exchange hedge was considered ineffective.

|  |  | Maturity |  |  |
| Less than | 1 to 3 | 3 to 6 | 6 to 9 | 9 to 12 | More than
As at 31.12.2024 | 1 month | months | months | months | months | 12 months
Commodity forward sales |  |  |  |  |  |
contracts oil: |  |  |  |  |  |
Notional quantity (in mbbl) | – | 929.0 | 929.0 | 915.0 | 915.0 | 1,500.0
Notional amount (in USD million |  |  |  |  |  |
per bbl) | – | 67.8 | 67.7 | 67.5 | 67.5 | 110.2
Average hedged sales price |  |  |  |  |  |
(in USD per bbl) | – | 73.0 | 72.9 | 73.8 | 73.8 | 73.5
Commodity forward sales |  |  |  |  |  |
contracts gas: |  |  |  |  |  |
Notional quantity (in mMWh) | – | 840.0 | 1,350.0 | 1,350.0 | 1,065.0 | 2,805.0
Notional amount (in EUR million |  |  |  |  |  |
per MWh) | – | 36.3 | 49.9 | 49.9 | 38.7 | 96.0
Average hedged sales price |  |  |  |  |  |
(in EUR per MWh) | – | 43.2 | 36.9 | 36.9 | 36.4 | 34.2
Commodity zero cost collar |  |  |  |  |  |
contracts oil: |  |  |  |  |  |
Notional quantity gas (in mbbl) | – | 135.0 | 135.0 | 60.0 | 60.0 | 1,200.0
Average hedged price – floor |  |  |  |  |  |
(in USD per bbl) | – | 66.1 | 66.1 | 67.5 | 67.5 | 65.0
Average hedged price – ceiling |  |  |  |  |  |
(in USD per bbl) | – | 82.7 | 82.7 | 77.4 | 77.4 | 77.4
Commodity zero cost collar |  |  |  |  |  |
contracts gas: |  |  |  |  |  |
Notional quantity gas (in mMWh) | – | 285.0 | 240.0 | 240.0 | 300.0 | 1,260.0
Average hedged price – floor |  |  |  |  |  |
(in EUR per MWh) | – | 36.3 | 34.4 | 34.4 | 35.0 | 31.2
Average hedged price – ceiling |  |  |  |  |  |
(in EUR per MWh) | – | 56.2 | 49.4 | 49.4 | 54.5 | 45.6

Hedge reserve movement
The table below shows the movement in the hedge reserve from changes in the cash flow hedges.

USD million | Hedge Reserve
Balance as of 01.01.2023 | 13.9
Realised cash flow hedge on revenue | (19.7)
Realised cash flow hedge on financial items | (29.3)
Related tax – realised cash flow hedge | 19.1
Changes in fair value cash flow hedge revenue | 102.5
Changes in fair value cash flow hedge financial items | 5.2
Related tax – changes in fair value cash flow hedge | (66.8)
Balance as of 31.12.2023 | 24.9
Realised cash flow hedge on revenue | 1.6
Realised cash flow hedge on financial items | (20.2)
Related tax – realised cash flow hedge | 3.1
Changes in fair value cash flow hedge revenue | (100.4)
Changes in fair value cash flow hedge financial items | 0.6
Related tax – changes in fair value cash flow hedge | 64.1
Balance as of 31.12.2024 | (26.3)

20 Share capital
There is only one single class of shares in the Company and all shares have equal rights. All shares are
fully paid.
Changes in number of shares and share capital:

| No. of shares | Share capital*
Number of shares and share capital as of 01 January 2023 | 25,708,424 | 1.7
Issue of shares | 497,425 | 0.0
Number of shares and share capital as of 31 December 2023 | 26,205,849 | 1.7
Issue of shares | 292,791 | 0.0
Number of shares and share capital as of 31 December 2024 | 26,498,640 | 1.7

Notes continued
112 BlueNord
20 Share capital continued

|  | Treasury share
| No. of shares | reserve*
Number of treasury shares and treasury share reserve as of 01 January 2023 | (137,162) | (0.1)
Sale of treasury shares | 36,641 | 0.0
Number of treasury shares and treasury share reserve as of 31 December 2023 | (100,521) | (0.1)
Sale of treasury shares | 100,521 | 0.1
Number of treasury shares and treasury share reserve as of 31 December 2024 | – | –

* In USD million.
Changes in 2024
During 2024 the Company issued 292.791 shares in relation to exercise of share options held by former
members of the Board and second award of the Long-Term Incentive (LTI) programme.
The Company sold 100,521 of its own shares in relation to exercise of share options held by former
members of the Board.
Changes in 2023
The Company received conversion notice from bondholders holding BNOR13 and BNOR15 bonds
for total principal amount of USD 14.6 million in 2023, which pursuant to the bond terms are convertible
into 497,425 new shares in the Company. The BNOR13 conversion in January had a conversion
price of USD 28.9734, the following conversions had a conversion price of USD 51.4307 according
to the new bond terms. Following such conversions, the share capital is increased with NOK 268.5/
USD 32.7 thousands.
The Company sold 36,641 of its own shares during the year, of which 23,641 shares was related to first
award of the Long-Term Incentive (LTI) programme. The shares price at transfer date was 475 NOK/
share. In addition, 13,000 shares were sold to cover exercise of options held by former employees at
strike price 160 NOK/share.
Overview of shareholders at 31 March 2025:

Shareholder* | Shareholding | Ownership share | Voting share
Euroclear Bank S.A./N.V. | 6,872,158 | 25.9 % | 25.9 %
Goldman Sachs International | 5,123,261 | 19.3 % | 19.3 %
The Bank of New York Mellon SA/NV | 2,279,864 | 8.6 % | 8.6 %
SOBER AS | 1,850,000 | 7.0 % | 7.0 %
J.P. Morgan Securities LLC | 1,482,181 | 5.6 % | 5.6 %
J.P. Morgan Chase Bank, N.A., London | 816,890 | 3.1 % | 3.1 %
State Street Bank and Trust Comp | 787,902 | 3.0 % | 3.0 %
Citibank, N.A. | 489,581 | 1.8 % | 1.8 %
BARCLAYS CAPITAL LUXEMBOURG SARL | 450,000 | 1.7 % | 1.7 %
UBS Switzerland AG | 448,391 | 1.7 % | 1.7 %
Sbakkejord AS | 417,058 | 1.6 % | 1.6 %
J.P. Morgan SE | 349,569 | 1.3 % | 1.3 %
FINSNES INVEST AS | 316,000 | 1.2 % | 1.2 %
FJORD & ATOLL SOSYFR AS | 308,070 | 1.2 % | 1.2 %
HANASAND | 292,412 | 1.1 % | 1.1 %
VELDE HOLDING AS | 245,000 | 0.9 % | 0.9 %
ALTO HOLDING AS | 244,700 | 0.9 % | 0.9 %
CLEARSTREAM BANKING S.A. | 198,115 | 0.7 % | 0.7 %
Caceis Bank | 186,695 | 0.7 % | 0.7 %
The Bank of New York Mellon | 186,210 | 0.7 % | 0.7 %
Total | 23,344,057 | 88.1 % | 88.1 %
Other owners (ownership <0,53%) | 3,154,583 | 11.9 % | 11.9 %
Total number of shares at 31 March 2025 | 26,498,640 | 100.0 % | 100.0 %

* Nominee holder.
21 Post-employment benefits
Defined contribution plan
The Group has defined contribution plans for its employees. Pension costs related to the Company’s
defined contribution plan amounts to USD 684.4 thousand for 2024. For 2023, the corresponding
costs were USD 732.2 thousand.
The Norwegian companies are obliged to have occupational pension in accordance with the
Norwegian act related to mandatory occupational pension. All Norwegian companies meet the
Norwegian requirements for mandatory occupational pension (‘obligatorisk tjenestepensjon’).
Correspondingly, the affiliates in Denmark and the United Kingdom comply with the requirement for
mandatory occupational pension by local legislation.
Notes continued
113 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
22 Asset retirement obligations

USD million | 31.12.2024 | 31.12.2023
Balance on 01.01. | 1,049.0 | 955.8
Provisions and change of estimates made during the year | 34.5 | 52.6
Accretion expense | 54.2 | 49.2
Incurred cost removal | (15.5) | (8.7)
Currency translation adjustment | (0.1) | 0.1
Total provision made for asset retirement obligations | 1,122.1 | 1,049.0
Breakdown of short-term and long-term asset retirement obligations |  |
Short-term | 11.4 | 15.4
Long-term | 1,110.6 | 1,033.7
Total provision for asset retirement obligations | 1,122.1 | 1,049.0

See note 1.17 for the accounting policies and note 3.2 (c) for the accounting estimates / assumptions
related to asset retirement obligations.
BlueNord has a legal and contractual obligation under the DUC Joint Venture (JV) partnership
to decommission its oil and gas assets at the end of their useful life. The lifetime estimates are
based on executing a concept for abandonment in accordance with the Petroleum Activities Act
and international regulations and guidelines. The timing estimates of the abandonment provision
is calculated based on the assessment of when the remaining oil and gas reserves reaches its
economic cut-off. The abandonment cost is estimated by the Operator and forms the basis for the
ARO calculation. The obligations are measured at net present value, assuming an inflation rate of 2.0
percent (2023: 2.0 percent) and a nominal credit-adjusted discount rate before tax of 5.0 percent
(2023: 5.5 percent). The credit margin included in the discount rate is 2.1 percent (2023: 2.9 percent).
Most of the removal activities are expected to be executed many years into the future. This makes
the ultimate asset retirement costs and timing highly uncertain. Costs and timing can be affected by
changes in regulations, technology, estimated reserves, economic cut-off date, etc. The provision
at the reporting date represents management’s best estimate of the present value of the future
asset retirement costs required. To note, the timing and costs have not yet been agreed within the
partnership and may deviate from the licence partners’ estimates.
The change in estimate during the year includes an increase of USD 69 million due to change in
discount rate and a decrease of USD 15 million due to change in expected timing of close in of
production from Gorm and phasing of the abandonment activities. Further, the asset retirement
estimate from the Operator includes both US dollar and Danish kroner costs and as a result there is a
decrease of USD 19 million due to the strengthening of USD to DKK. To date, BlueNord is not required
to post any security in respect of its abandonment obligations .
As part of the overall restructuring in 2015, an agreement was reached that entails that the partners
took over BlueNord’s share of the Nini/Cecilie licences, however, BlueNord remains liable for the asset
retirement obligation towards the licence partners. The liability related to Nini/Cecilie is capped at the
escrow amount, which is currently USD 61.5 million/DKK 444.1 million.
The balance as per 31.12.2024 is USD 1,057.2 million for DUC, USD 61.5 million for Nini/Cecilie, USD 1.3
million for Lulita (non-DUC share) and USD 2.1 million for Tyra F-3 pipeline.
Expected timing of Asset Retirement Obligation

USD million | Un-discounted | Discounted
2025-2029 | 42.8 | 39.0
2030-2034 | 492.6 | 330.4
2035-2039 | 61.1 | 36.6
2040+ 1) | 1,589.1 | 654.6
At 31.12.2024 2) | 2,185.6 | 1,060.6

1) The DUC licence expires in 2042.
2) Excluding Nini/Cecilie as the provision is secured through an escrow account, see note 18.
Sensitivity analysis
The table below shows how the asset retirement obligation for the DUC would be affected by changes
in the various assumptions, given that the remaining assumptions are constant. This includes sensitivities
accounting for climate risk related factors which can impact cost estimates, increase discount rate
and / or accelerate the timing of abandonment due to tighter regulatory standards.

| ARO | Change in
Sensitivity | ($’mm) | provision
Abandonment cost estimate | 1,057.5 |
Abandonment cost estimate increase +40% | 1,480.5 | 40.0%
Abandonment cost estimate increase +10% | 1,163.3 | 10.0%
Abandonment cost estimate decrease -10% | 951.8 | -10.0%
Abandonment cost estimate decrease -30% | 740.3 | -30.0%
Discount rate +1.0% | 925.4 | -13.0%
Discount rate -1.0% | 1,213.2 | 15.0%
Inflation rate +1.0% | 1,210.5 | 15.0%
Inflation rate -1.0% | 925.2 | -13.0%
Cessation Of Production (by hubs) accelerated by 5 years | 1,216.6 | 15.0%

Notes continued
114 B lueNord
23 Borrowings
23.1 Summary of borrowings

| 31.12.2024 |  | 31.12.2023 |
| Principal | Book | Principal | Book
USD million | amount | value | amount | value
BNOR14 Senior Unsecured Bond 1) | – | – | 175.0 | 169.1
BNOR16 Senior Unsecured Bond 2) | 300.0 | 303.5 | – | –
Reserve-based lending facility 3) | 880.0 | 834.3 | 725.0 | 695.8
Total non-current debt | 1,180.0 | 1,137.9 | 900.0 | 864.9
Reserve-based lending facility 3) | – | – | 125.0 | 125.0
BNOR15 Convertible Bond 4) | 247.1 | 233.1 | 228.4 | 201.7
Total current debt | 247.1 | 233.1 | 353.4 | 326.7
Total borrowings | 1,427.1 | 1,370.9 | 1,253.4 | 1,191.6

Note: Book values reported on the basis of amortised cost for BNOR16 (BNOR14 called upon in June 2024), the reserve-based lending
facility and the convertible bond loan element of BNOR13 and BNOR15.
1) As at 14 June 2024, the Company exercised the call option to redeem all of BNOR14 at 110.00131 percent (plus accrued unpaid interests
on the redeemed amount) on 02 July 2024.
2) The Company issued a senior unsecured bond of USD 300 million 2 July 2024, with a maturity in July 2029. The bond carries an interest
of 9.5 percent p.a., payable semi-annually. The BNOR16 bond has been used to redeem the BNOR14 bond and for other general
corporate purposes.
3) The Company completed the amendment and restatement of its USD 1.1 billion reserve-based lending facility and entered into an
increased reserve-based lending Facility in Q2 2024. The facility has a five and a half-year tenor with a total facility amount of USD 1.4
billion (an increase of USD 300 million), with a maximum of USD 1.15 billion available for cash drawdown by the Company. Interest is
accrued on the drawn amount with an interest rate comprising the aggregate of SOFR and 4.0 percent per annum. The current capital
outstanding is USD 880 million at 2024.
4) The Company issued a convertible bond loan of USD 207.6 million in December 2022, with a five-year tenor and a conversion to equity
or cash settlement after three years (31 December 2025). BNOR15 is made up of a transfer from BNOR13 of USD 151.4 million plus
additional compensation bonds of USD 56.2 million. In the same way as BNOR13, the lender was granted a right to convert the loan
into new shares in the Company by way of set-off against the claim on the Company. The loan carries an interest of 8 percent p.a. on a
PIK basis, with an alternative option to pay cash interest at 6 percent p.a., payable semi-annually. Conversion price of USD 51.4307 per
share. In 2023, USD 0.1 million was converted into equity. No other capital movements were recorded in 2024. For more information on
the bond terms see www.bluenord.com/debt. BlueNord has exercised the clean up call option to redeem all of BNOR13 outstandings
in accordance with the bond terms and as at January 2025, BNOR13 has been fully repaid.
Notes continued
115 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
23 Borrowings continued

|  | Cash flows |  |  | Non-cash changes |  |
|  | Receipts/ | Interest and | Conversion to | Move from |  |
Movements in interest-bearing liabilities | 31.12.23 | payments | financing cost | shares | LT to ST | Amortisation | 31.12.24
BNOR13 Convertible Bond | – | – | – | – | – | – | –
BNOR15 Convertible Bond | 201.7 | – | – | – | (233.1) | 31.3 | –
BNOR16 Senior Unsecured Bond | – | 300.0 | (11.5) | – | – | 15.1 | 303.5
BNOR14 Senior Unsecured Bond | 169.1 | (175.0) | (25.4) | 22.3 | – | 9.0 | –
Reserve-based lending facility 1) | 695.8 | 30.0 | (96.8) | – | 125.0 | 80.4 | 834.3
Total movement non-current interest-bearing liabilities | 1,066.6 | 155.0 | (133.7) | 22.3 | (108.1) | 135.8 | 1,137.9
Reserve-based lending facility | 125.0 | – | – | – | (125.0) | – | –
BNOR15 Convertible Bond | – | – | – | – | 233.1 | – | 233.1
Total movement in current interest-bearing liabilities | 125.0 | – | – | – | 108.1 | – | 233.1
Total movement in interest-bearing liabilities | 1,191.6 | 155.0 | (133.7) | 22.3 | – | 135.8 | 1,370.9

1) The cash outflow from interest and financing cost of USD 96.8 million (2023: USD 37.9 million) and the change in amortisation of USD
80.4 million (2023: USD 44.6 million) on the reserve-based lending facility is net of realised gain on interest swap of USD 21.3 million
(2023: USD 46.4 million).

|  | Cash flows |  |  | Non-cash changes |  |
|  | Receipts/ | Interest and | Conversion to | Conversion |  |
Movements in interest-bearing liabilities | 31.12.22 | payments | financing cost | shares | BNOR15 | Amortisation | 31.12.23
BNOR13 Convertible Bond | 13.1 | – | – | (13.2) | – | 0.1 | (0.0)
BNOR15 Convertible Bond | 175.7 | – | – | (0.1) | – | 26.2 | 201.7
BNOR14 Senior Unsecured Bond | 166.9 | – | (15.8) | – | – | 17.9 | 169.1
Reserve-based lending facility 1) | 764.0 | 50.0 | (37.9) | – | (125.0) | 44.6 | 695.8
Total movement non-current interest-bearing liabilities | 1,119.6 | 50.0 | (53.6) | (13.3) | (125.0) | 88.9 | 1,066.6
Reserve-based lending facility | – | – | – | – | 125.0 | – | 125.0
Deferred Consideration | 25.0 | (25.0) | – | – | – | – | –
Total movement current interest-bearing liabilities | 25.0 | (25.0) | – | – | 125.0 | – | 125.0
Total movement in interest-bearing liabilities | 1,144.6 | 25.0 | (53.6) | (13.3) | – | 88.9 | 1,191.6

Notes continued
116 BlueNord
23 Borrowings continued
23.2 Details on borrowing
Details on borrowings outstanding on 31 December 2024
Reserve-based lending facility
In June 2024, BlueNord amended and extended its existing senior secured reserve-based credit
facility to commit to a five-and-a-half-year senior reserve-based credit facility of USD 1.4 billion.
The facility is a reserve-based credit facility secured against certain cash flows generated by the
Group. The amount available under the facility is recalculated every six months based upon the
calculated cash flow generated by certain producing fields and fields under development at an oil
price and economic assumptions agreed with the banking syndicate providing the facility. The facility
is secured by a pledge over the shares of certain Group companies, a pledge over the Company’s
working interest in its share of the DUC licence and security over insurances, hedging contracts,
project accounts, intercompany loans and material contracts. The pledged assets on 31 December
2024 amounted to USD 1,362 million and represented the carrying value of the pledge of the Group
companies whose shares are pledged as described in the section 5 below (Assets pledged as
security for interest-bearing debt).
Pledge value: carrying value of shares held in Altinex AS, BlueNord Denmark A/S, BlueNord Energy
Denmark A/S, BlueNord Gas Denmark A/S by BlueNord ASA.
BNOR15
In December 2022, BlueNord launched an exchange offer for the BNOR13 bondholders in exchange
for a new subordinated convertible bond of USD 208 million, with revised terms and a later and more
flexible conversion date in 2025. The majority of the BNOR13 convertible was transferred into the
BNOR15 convertible. The Company issued a total of 207,641,201 new BNOR15 bonds, each with
a nominal value of USD 1. The BNOR13 bond has been fully repaid in January 2025. The BNOR15
bond terms mirror the amendments of the previous BNOR13 bond except that inter alia a tap
issue mechanism has been included. Interest is at 8 percent p.a. on a PIK basis, with an alternative
option to pay cash interest at 6 percent p.a., payable semi-annually.
BNOR16
In July 2024, BlueNord successfully completed the issue of a USD 300 million unsecured bond.
The proceeds have been used to redeem the previous BNOR14 bond and also utilised for general
corporate purposes. The bond carries an interest of 9.5 percent p.a., payable semi-annually, with a
five-year tenor .
23.3 Covenants
Covenants relating to interest bearing debt
Reserve-based lending facility
The reserve-based credit facility constitutes senior debt of the Company and is secured on a first
priority basis against certain of the Company’s subsidiaries and their assets. The reserve-based credit
facility agreement contains a financial covenant that the ratio of Net Debt to EBITDAX (earnings before
interest, tax, depreciation, amortisation and exploration) shall be less than 3.0:1.0. Each test is carried
out on the audited full year financial statements of BlueNord ASA. BlueNord must also demonstrate
minimum liquidity on a look forward basis of USD 50 million during the relevant period, which is the
latest of completion of the Tyra redevelopment project and following 12-month period. The agreement
also includes special covenants which, among other, restrict the Company from taking on additional
secured debt, provide parameters for minimum and maximum hedging requirements and restrict
declaration of dividends or other distributions. BlueNord has been in compliance with all covenants
requirements during 2023 and 2024 and at 31 December 2024.
BNOR16
The USD 300 million unsecured bond contains a financial covenant that the ratio of net debt to
EBITDAX (earnings before interest, tax, depreciation, amortisation, and exploration) shall be less than
3.0:1.0. There is also a minimum liquidity covenant requirement of USD 50 million unrestricted cash,
bank deposits and cash equivalents. BlueNord is in compliance with the covenants at the end of 2024.
23.4 Payment structure
Payment structure (USD million) at 31.12.2024:

Year | BNOR15 1) | BNOR16 | RBL Facility | Total
2025 | – | – | – | –
2026 | – | – | – | –
2027 | – | – | 223.0 | 223.0
2028 | – | – | 328.5 | 328.5
2029 | – | 300.0 | 328.5 | 628.5
Total | – | 300.0 | 880.0 | 1,180.0

1) Any redemption and repurchase of bonds are acted by BlueNord as Issuer. The Bondholders will have the right of a mandatory
redemption but only in a case of a Change of Control event (which will be notified by BlueNord). In the table it is assumed that it will be
no cash payments on BNOR15 .
Notes continued
117 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
23 Borrowings continued
Interest payments (USD million) at 31.12.2024:

Year | BNOR16 1) | RBL Facility 2) | Total
Interest rate 3) | 9.5% | SOFR** |
2025 | 28.5 | 83.8 | 112.3
2026 | 28.5 | 86.2 | 114.7
2027 | 28.5 | 80.4 | 108.9
2028 | 28.5 | 53.3 | 81.8
2029 | 28.5 | 22.6 | 51.1
Total | 142.5 | 326.3 | 468.8

1) BNOR16 carries an interest rate of 9.50 per annum, payable semi-annually.
2) RBL interest payment include drawn, undrawn and letter of credit utilisation fees. There are no active interest rate hedges to date.
3) BNOR15 carries an interest charge of: (i) 6 percent per annum in cash, payable semi-annually, or; (ii) 8 percent per annum payment in kind
(‘PIK’) cumulative interest, rolled up semi-annually, to add to BNOR15 capital on conversion at expiry of the bond. Currently the Company has
elected the PIK interest of 8 percent and is therefore forecasting no cash interest payments on BNOR15 in the above table.
See also note 19.2 Financial Instruments by Category for payment structure that includes all financial liabilities.
23.5 Assets pledged as security for interest-bearing debt
Net book value in the separate financial statements of assets pledged as securities
The Group has the following pledged assets for the Reserve-Based Lending facility:

USD million | 2024 | 2023
BlueNord ASA shares in Altinex AS | 398.5 | 396.8
Altinex AS shares in BlueNord Energy 8/06 Denmark B.V and other companies | 614.7 | 614.7
Loans from Parent to subsidiaries | 348.6 | 343.2
Total net book value | 1,361.8 | 1,354.7

24 Trade payables and other payables

USD million | 2024 | 2023
Trade payable | 4.4 | 17. 5
Liabilities to operators relating to joint venture licences | 31.1 | 70.9
Over-lift of oil/NGL | 6.3 | –
Accrued interest | 3.4 | 1.3
Salary accruals | 2.3 | 2.4
Public duties payable | 33.7 | 12.8
Other current liabilities | 18.2 | 20.3
Total trade payables and other current liabilities | 99.4 | 125.3

Trade and other payables held in currency

USD million | 2024 | 2023
USD | 51.7 | 40.2
DKK | 29.8 | 70.3
EUR | 16.0 | 12.3
GBP | 0.7 | 0.8
NOK | 1.2 | 1.7
Total | 99.4 | 125.3

25 Guarantees
Overview of issued guarantees on 31 December 2024
The parent company of the Group, BlueNord ASA (‘BlueNord’), has issued a parent company
guarantee to the Danish Ministry of Climate, Energy and Utilities on behalf of its subsidiary BlueNord
Energy Denmark A/S, BlueNord Gas Denmark A/S and CarbonCuts A/S.
The Company has provided a parent company guarantee to the Danish Ministry of Climate, Energy and
Utilities related to the Group’s activities on the Danish continental shelf, including BlueNord’s participation
in the Tyra West Pipeline and the Lulita licence. The Company has also provided a parent company
guarantee towards the lenders in relation to the Company’s USD 1.4 billion reserve-based lending facility
and customary obligations/guarantees under joint operating agreements. BlueNord has also provided a
parent company guarantee to Shell Energy Europe Limited in relation to its subsidiary BlueNord Energy
Denmark A/S’s obligations under a gas offtake and transportation agreement capped at EUR 30 mill.
Furthermore, the Company has provided a parent company guarantee to Total E&P Denmark A/S for
its obligations under the JOA together with a guarantee from Shell. BlueNord has provided standby
letters of credit of USD 100 million, issued under the LC tranche of the USD 1.4 billion RBL facility for the
benefit of Shell in connection with this guarantee.
Notes continued
118 BlueNord
25 Guarantees continued
In relation to BlueNord’s historic operations in the UK North Sea, the Company has issued a parent
company guarantee on behalf of its subsidiaries BlueNord UK Ltd and BlueNord Energy UK Limited.
On 31 December 2012, BlueNord issued a parent company guarantee on behalf of its subsidiary
Noreco Norway AS. BlueNord guarantees that, if any amounts become payable by Noreco Norway
AS to the Norwegian Secretary of State under the terms of the licences and the company does not
repay those amounts on first demand, BlueNord shall pay to the Norwegian Secretary of State on
demand an amount equal to all such amounts. Noreco Norway AS was liquidated in 2018, however as
per 31 December 2024, the guarantee has not been withdrawn.
26 Investments in jointly-owned assets
Investments in jointly own assets are included in the accounts by recognising the Group’s share of the
assets, liabilities, revenues and expenses related to the joint operation.
The Group holds the following licence equities on 31 December 2024:

Licence | Field | Country | Ownership share
DUC | DUC | Denmark | 36.8%
1/90 | Lulita Part | Denmark | 20.0%
7/86 | Lulita Part | Denmark | 20.0%
8/06B |  | Denmark | 36.8%

27 Contingencies and commitments
Financial commitments
As a partner in the DUC, the Company has commitment to fund its proportional share of the budget
and work programmes of the DUC. In December each year, the operating budget (which includes
operating expenditures, capital expenditure related to production, exploration, and abandonment)
for the following year is agreed amongst the DUC partners. For the coming four years, the average
operating budget for BlueNord is expected to be around USD 290 million per year. Capital and
abandonment expenditure for individual projects are approved separately.
BlueNord’s capital commitments are related to the drilling of one infill well on Halfdan, with a gross
DUC budget of DKK 388 million.
The DUC is obliged to use the specially constructed oil trunk line, pumps and terminal facilities and to
contribute to the construction and financing costs thereof as a result of an agreement entered into with
the Danish government. This obligation is approximately USD 21 million per year (2024: USD 20 million)
BlueNord share.
In addition to the above and in order to obtain the consent of TotalEnergies EP Danmark A/S to the
acquisition, BlueNord Energy Denmark A/S agreed to deposit cash in a secured cash call security
account in favour of TotalEnergies EP Danmark A/S (the concessionaire in respect of the Sole
Concession). On 31 December 2024, the escrow account was USD 157 million. As a result of the Tyra
redevelopment project being completed the cash call security amount has in January 2025 reduced
to USD 100 million and can, on certain terms and conditions, be replaced with a letter of credit or other
type of security.
Contingent liabilities
In relation to the Nini and Cecilie fields, BlueNord was in 2015 prevented from making payments for its
share of production costs and was consequently in breach of the licence agreements. In accordance with
the JOAs, the Nini and Cecilie licences were forfeitured and the licences were taken over by the partners,
whereas the debt remained with BlueNord, but the liability is in any and all circumstances limited to a
maximum amount equal to the restricted cash account of USD 61.5 million (DKK 441.3 million), adjusted
for interest. The total provision made for the asset retirement obligations reflects this.
The Company has received a claim regarding the level of Ørsted pipeline tariffs charged since 2013.
As the relevant authority (Forsyningstilsynet) is currently reassessing their view, BlueNord believes
that there is no basis for this claim prior to a new ruling setting the appropriate level of these tariffs.
Given the outcome of this and any consequent liability is not yet known, the Company has not
recognised a provision for this claim.
During the normal course of its business, the Company may be involved in disputes, including tax
disputes. The Company has not made accruals for possible liabilities related to litigation and claims
based on management’s best judgement.
BlueNord has unlimited liability for damage in relation to its participation in the DUC. The Company has
insured its pro rata liability in line with standard market practice.
Apart from the issues discussed above, the Group is not involved in claims from public authorities, legal
claims or arbitrations that could have a significant negative impact on the Company’s financial position
or results.
28 Related party transactions
Other than fees to Directors of the Board the Group did not have any transactions with related parties
during 2024.
29 Subsequent events
There are no events with significant accounting impacts that have occurred between the end of the
reporting period and the date of this report.
Notes continued
119 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Income Statement of BlueNord ASA
(Parent Company) for the year ended 31 December
USD million Note 2024 2023
Total revenues 2, 13 3.4 3.7
Personnel expenses 9, 13 (8.4) (5.8)
Other operating expenses 12, 13 (5.3) (3.5)
Total operating expenses (13.7) (9.3)
Operating result before depreciation, amortisation and impairment (EBITDA) (10.2) (5.6)
Depreciation, amortisation and impairment (0.0) (0.1)
Net operating result (EBIT) (10.3) (5.7)
Reversal of financial assets 10 – 0.5
Interests received from Group companies 36.3 34.7
Interest income 3.4 1.2
Foreign exchange gains 0.3 2.0
Total financial income 40.0 38.4
Extinguishment of bond loans 5 (22.3) (1.7)
Amortised cost from bond loans (44.5) (36.5)
Interest expenses current liabilities (0.0) (0.0)
Issue of compensation bonds – (0.0)
Foreign exchange losses (10.9) (1.7)
Impairment of financial assets 10 (1.3) (0.5)
Other financial expenses (0.0) (2.7)
Total financial expenses (79.0) (43.1)
Net financial items (38.9) (4.7)
Result before tax (EBT) (49.2) (10.4)
Tax 11 - -
Net result for the year (49.2) (10.4)
Appropriation:
Allocated to/(from) other equity (49.2) (10.4)
Total appropriation (49.2) (10.4)
120 BlueNord
Balance Sheet for BlueNord ASA
(Parent Company) for the year ended 31 December
USD million Note 31.12.24 31.12.23
1)
01.01.2023
1)
ASSETS
Non-current assets
Financial non-current assets
Investment in subsidiaries 3 398.5 396.8 393.5
Loan to Group companies 10 348.6 342.1 311.0
Restricted bank deposits 4 61.5 64.3 61.1
Machinery and equipment 0.1 0.0 0.1
Other non-current assets 0.0 0.0 0.0
Total non-current assets 808.7 803.2 765.7
Current assets
Trade receivables – 0.0 0.0
Other current receivables 1.8 0.3 0.7
Total current receivables 1.8 0.3 0.7
Financial current assets
Restricted bank deposits 0.1 0.1 0.1
Cash and cash equivalents 89.8 0.3 6.0
Total financial current assets 89.9 0.5 6.1
Total current assets 91.7 0.8 6.9
Total assets 900.4 804.0 772.5
Oslo
8 April 2025
Glen Ole Rødland Tone Kristin Omsted Marianne Lie Robert J. McGuire Peter Coleman Kristin Færøvik João Saraiva e Silva Euan Shirlaw
Executive Chair Board member Board member Board member Board member Board member Board member Chief Executive Officer
USD million Note 31.12.24 31.12.23 01.01.2023
1)
EQUITY AND LIABILITIES
Equity
Paid-in equity
Share capital 1.7 1.7 1.7
Share premium fund 787.2 782.9 768.4
Treasury share reserve (0.0) (0.1) (0.1)
Total paid-in capital 788.9 784.5 769.9
Retained earnings
Other equity (442.0) (395.6) (390.7)
Total retained earnings (442.0) (395.6) (390.7)
Total equity 7 346.9 388.9 379.2
Non-current liabilities
Bond loan 5 303.5 169.1 166.9
Other non-current liabilities 0.0 - -
Total non-current liabilities 303.5 169.1 166.9
Current liabilities
Convertible bond loans 5 248.0 228.4 223.2
Trade payables 0.8 16.1 1.6
Other current liabilities 1.1 1.4 1.7
Total current liabilities 249.9 246.0 226.4
Total liabilities 553.4 415.1 393.3
Total equity and liabilities 900.4 804.0 772.5
1) The convertible bond loan has been reclassified to current liabilities with retrospective effect. For more details, refer to Note 1.
Accounting principles.
121 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Cash Flow for BlueNord ASA
(Parent Company) for the year ended 31 December
USD million Note 2024 2023
Net result for the period (49.2) (10.4)
Adjustments for:
Depreciation/impairment 10 0.0 0.1
Share-based payments expenses (0.1) 1.9
Net financial cost/(income) 38.9 4.7
Interest received 2.3 0.1
Other financial items paid (0.0) (0.0)
Changes in:
Other receivables (15.7) 14.6
Prepayments (0.5) 0.0
Other current balance sheet items (0.0) (0.6)
Net cash flow from operating activities (25.3) 10.6
Cash flows from investing activities
Loans to Group companies 21.8 (0.7)
Investment in furniture, equipment and machinery (0.1) (0.0)
Net cash flow from investing activities 21.7 (0.7)
Cash flows from financing activities
Drawdown long-term liability 5 300.0 –
Repayment long-term liability 5 (192.5) –
Sale of shares 7 1.5 0.2
Issue of shares 7 4.2 –
Interest and financing costs (20.2) (15.8)
Net cash flow from (used) in financing activities 93.0 (15.5)
Net change in cash and cash equivalents 89.4 (5.7)
Cash and cash equivalents at the beginning of the period 0.3 6.0
Cash and cash equivalents at end of the year 89.8 0.3
122 BlueNord
1 Accounting Principles
BlueNord ASA is a public limited liability company registered in Norway, with headquarters in Oslo
(Nedre Vollgate 3, 0158 Oslo).
The annual accounts for BlueNord ASA (‘BlueNord’ or the ‘Company’) have been prepared in
compliance with the Norwegian Accounting Act (‘Accounting Act’) and accounting principles
generally accepted in Norway (‘NGAAP’) as of 31 December 2024.
The Company is listed on the Oslo Stock Exchange under the ticker ‘BNOR’. The financial statements for
2024 were approved by the Board of Directors on 8 April 2025 and will be presented for approval at the
Annual General Meeting on 14 May 2025.
Going concern
The Board of Directors confirm that the financial statements have been prepared under the
presumption of going concern, and that this is the basis for the preparation of these financial
statements. The financial solidity and the Company’s working capital and cash position are
considered satisfactory in regards of the planned activity level for the next twelve months.
Basis of preparation
The financial statements are prepared on the historical cost basis. The subtotals and totals in some
of the tables may not equal the sum of the amounts shown due to rounding.
Use of estimates
The preparation of financial statements in compliance with the Accounting Act requires the use of
estimates. The application of the Company’s accounting principles also require management to apply
judgement. Areas, which to a great extent contain such judgements, a high degree of complexity, or areas
in which assumptions and estimates are significant for the financial statements, are described in thenotes.
Revenues
Income from sale of services is recognised at fair value of the consideration, net after deduction of VAT.
Services is recognised in proportion to the work performed.
Classification of balance sheet items
Assets intended for long-term ownership or use have been classified as fixed assets. Receivables are
classified as current assets if they are to be repaid within one year after the transaction date. Similar
criteria apply to liabilities. First year’s instalment on non-current liabilities and non-current receivables are
classified as current liabilities and assets. For interest-bearing debt where the Company is required to be
in compliance with financial covenants, the loans are classified as current liabilities if BlueNord is in breach
with the covenants to that extent that the loan would be payable on the demand of the creditor. If a waiver
is agreed with the creditor prior to approval of these financial statements, the classification is carried
forward in accordance with the payment schedule of the initial borrowing agreement.
Effective January 1, 2024, amendments to IAS 1 Presentation of Financial Statements have resulted in
the reclassification of the convertible bond loan as a current liability.
BlueNord has a bond loan that comprises a financial liability and an option granted to the holders to
convert the bond into shares of the Company at any time before maturity.
BlueNord interpreted the previous IAS 1 that the holders’ option to convert at any time did not affect
the classification, and the bond loan was classified as non-current as long as it was more than twelve
months to maturity.
The amended IAS 1 clarified that transfer of a company’s shares is a form of settlement and when a
company classifies the host liability as current or non-current, it can ignore only those conversion
options that are recognised as equity. As the Company does not have the right to defer settlement
for at least twelve months from the reporting dates, the host liability is reclassified as current. To be
consistent with the classification of convertible bond loan as current liability in the Consolidated
Statements, BlueNord has applied the same classification principle for their Statutory Accounts.
Except for the amendments to IAS 1 mentioned above, there were no material changes in accounting
policies in 2024.
Investments in subsidiaries
For investments in subsidiaries, the cost method is applied. The cost price is increased when funds
are added through capital increases or when Group contributions are made to subsidiaries. Dividends
received are initially taken as income. Dividends exceeding the portion of retained profit after the
acquisition are reflected as a reduction to book value.
Dividend/group contribution from subsidiaries are reflected in the same year as the subsidiary makes
a provision for the amount.
Asset impairments
Impairment tests are carried out if there is indication that the carrying amount of an asset exceeds
the estimated recoverable amount. The test is performed on the lowest level of non-current assets
at which independent cash flows can be identified. If the carrying amount is higher than both the fair
value less cost to sell and recoverable amount (net present value of future use/ownership), the asset
is written down to the highest of fair value less cost of disposal and the recoverable amount.
Previous impairment charges are reversed in later periods if the conditions causing the write-down are
no longer present.
Notes
123 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
1 Accounting Principles continued
Foreign currencies
The functional currency and the presentation currency of the Company is US dollars (USD).
Assets and liabilities in foreign currencies are valued at the exchange rate on the balance sheet date.
Exchange gains and losses relating to sales and purchases in foreign currencies are recognised as
other financial income and other financial expenses.
Interest-bearing bond loans, convertible bond loans and other debt to financial institutions
Interest-bearing bond loans, convertible bond loans and borrowings are initially recognised at fair
value, net of transaction costs incurred, and the conversion option is not separated. Subsequently,
loans and borrowings are measured at amortised cost using the effective interest method. Gains
and losses arising on the repurchase, settlement or cancellation of liabilities are recognised either in
interest income and other financial items or in interest and other finance expenses within net financial
items. Financial liabilities are presented as current if the liabilities are due to be settled within 12 months
after the balance sheet date, or if they are held for the purpose of being traded.
Other liabilities
Liabilities, with the exception of certain liability provisions, are recognised in the balance sheet at
nominal amount.
Taxes
The tax in the income statement includes payable taxes for the period, refundable tax and changes in
deferred tax. Deferred tax is calculated at relevant tax rates on the basis of the temporary differences
which exist between accounting and tax values, and any carry forward losses for tax purposes at
the year-end. Tax enhancing or tax reducing temporary differences, which are reversed or may be
reversed in the same period, have been offset. Deferred tax and tax benefits which may be shown in
the balance sheet are presented net. Net deferred tax assets are not recognised due to uncertainty
about future taxable profits.
Tax reduction on Group contributions given and tax on Group contribution received, recorded as a
reduction of cost price or taken directly to equity, are recorded directly against tax in the balance sheet
(offset against payable taxes if the Group contribution has affected payable taxes, and offset against
deferred taxes if the Group contribution has affected deferred taxes).
Deferred tax is reflected at nominal value.
Cash flow statement
The cash flow statement has been prepared according to the indirect method. Cash and cash
equivalents include cash, bank deposits, and other current investments which immediately and with
minimal exchange risk can be converted into known cash amounts, with due date less than three
months from purchase date.
Share-based payments
The Company operates a number of equity-settled, share-based compensation plans, under which
the entity receives services from employees as consideration for equity instruments (options and
shares) of the Company. The fair value of the employee services received in exchange for the grant of
the options is recognised as an expense with a corresponding amount recognised to equity. The total
amount to be expensed is determined by reference to the fair value of the options and shares granted:
Fair value:
• including any market performance conditions; and
• excludes the impact of any service and non-market performance vesting conditions (for example,
profitability, sales growth targets and remaining an employee of the entity over a specified
timeperiod).
Non-market performance and service conditions are included in assumptions about the number
of options and shares that are expected to vest. The total expense is recognised over the vesting
period (which is the period over which all of the specified vesting conditions are to be satisfied). At the
end of each reporting period, the Group revises its estimates of the number of options and shares
that are expected to vest based on the non-market vesting conditions. It recognises the impact of
the revision to original estimates, if any, in the income statement, with a corresponding adjustment to
equity. When the options are exercised, the Company issues new shares. The proceeds received net
of any directly attributable transaction costs are credited to share capital (nominal value) and share
premium. The social security contributions payable in connection with the grant of the share options
and shares are considered an integral part of the grant itself, and the charge will be treated as a cash-
settledtransaction.
Notes continued
124 BlueNord
2 Revenue
USD million 2024 2023
Management fee subsidiaries 3.4 3.7
Total revenue 3.4 3.7
3 Investments in subsidiaries
Investments in subsidiaries are booked according to the cost method.
USD million
Subsidiaries Location
Ownership/
voting right Equity 31Dec
Net
Result
Book
value
Altinex AS Oslo 100% 290.5 3.2 398.5
BlueNord UK Ltd Great Britain 100% (2.5) (0.4) –
BlueNord AS Oslo 100% 0.0 (0.0) –
Book value 31.12.24 398.5
The impairment test as of 31.12.2024 justifies the overall value of Altinex and its subsidiaries.
4 Restricted bank deposits
USD million 2024 2023
Restricted bank deposits pledged as security for abandonment obligation
related to Nini/Cecilie
1)
61.5 64.3
Other restricted bank deposits
2)
0.1 0.1
Total restricted bank deposits 61.6 64.4
1) In connection to the asset retirement obligation of USD 61.5 million (DKK 441.3 million) in the Group Company BlueNord Energy Denmark.
2) Tax Withholding Account.
5 Borrowings
5.1 Summary of borrowings
USD million 2024 2023
Non-Current Debt
BNOR14 Senior Unsecured Bond – 169.1
BNOR16 Senior Unsecured Bond 303.5 –
Total non-current bonds 303.5 169.1
Current Debt
BNOR15 Convertible Bond 248.0 228.4
Total current debt 248.0 228.4
Total borrowings 551.5 397.5
Details on borrowings outstanding on 31 December 2024
BNOR15
The Company issued a convertible bond loan of USD 207.6 million in December 2022, with a five-year
tenor and a conversion to equity or cash settlement after three years (31 December 2025). BNOR15
made up of a transfer from BNOR13 of USD 151.4 million plus additional compensation bonds of
USD 56.2 million. In the same way as BNOR13, the lender was granted a right to convert the loan into
new shares in the Company by way of set-off against the claim on the Company. The loan carries an
interest of 8 percent p.a. on a PIK basis, with an alternative option to pay cash interest at 6 percent
p.a., payable semi-annually. Conversion price of USD 51.4307 per share. In 2023, USD 0.1 million was
converted into equity. No other capital movements were recorded in 2024. BlueNord has exercised
the clean up call option to redeem all of BNOR13 outstandings in accordance with the bond terms and
as at January 2025, BNOR13 has been fully repaid.
BNOR14
As of 14 June 2024, the Company exercised the call option to redeem all of BNOR14 at 110.00131
percent (plus accrued unpaid interests on the redeemed amount) on 02 July 2024.
BNOR16
The Company issued a senior unsecured bond of USD 300 million 2 July 2024, with a maturity in July
2029. The bond carries an interest of 9.5 percent p.a., payable semi-annually. The BNOR16 bond has
been used to redeem the BNOR14 bond and for other general corporate purposes.
5.2 Covenants
Reserve based lending facility
The reserve-based credit facility constitutes senior debt of the Company and is secured on a first
priority basis against certain of the Company’s subsidiaries and their assets. The reserve-based credit
facility agreement contains a financial covenant that the ratio of net debt to EBITDAX (earnings before
interest, tax, depreciation, amortisation and exploration) shall be less than 3.0:1.0. Each test is carried
out on the audited full year financial statements of BlueNord ASA. BlueNord must also demonstrate
minimum liquidity on a look forward basis of USD 50 million during the relevant period, which is the
latest of completion of the Tyra redevelopment project and following 12-month period. The agreement
also includes special covenants which, among other, restrict the Company from taking on additional
secured debt, provide parameters for minimum and maximum hedging requirements and restrict
declaration of dividends or other distributions. BlueNord was in compliance with these covenants
at the end of 2024.
BNOR16
The USD 300 million unsecured bond contains a financial covenant that the ratio of Net Debt to
EBITDAX (earnings before interest, tax, depreciation, amortisation and exploration) shall be less than
3.0:1.0. There is also a minimum liquidity covenant requirement of USD 50 million unrestricted cash,
bank deposits and cash equivalents. BlueNord has been in compliance with all covenant requirements
during 2023 and 2024 and at 31 December 2024.
Notes continued
125 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Notes continued
5 Borrowings continued
5.3 Payment structure
Principal BNOR16 Tota l
2029 300.0 300.0
Total 300.0 300.0
Interest payments at 31.12.2024 BNOR15* BNOR16 Total
Interest rate – 9.00%
2025 – 28.5 28.5
2026 – 28.5 28.5
2027 – 28.5 28.5
2028 – 28.5 28.5
2029 – 28.5 28.5
Total – 142.5 142.5
* BNOR15 carries a variable interest charge of: (i) 6 percent per annum in cash, payable semi-annually, or; (ii) 8 percent per annum PIK
cumulative interest, rolled up semi-annually, to add to BNOR15 capital on conversion at expiry of the bond. Currently, the Company has
elected the PIK interest of 8 percent and is therefore forecasting no cash interest payments on BNOR15 in the above table.
5.4 Pledged assets
Pledged assets relate to the carrying value of the pledged shares under the reserve-based lending
facility entered into by the wholly-owned subsidiary Altinex AS, please see note 23 in the Consolidated
Financial Statement.
6 Guarantees
Overview of issued guarantees on 31 December 2024
The parent company of the Group, BlueNord ASA (‘BlueNord’), has issued a parent company
guarantee to the Danish Ministry of Climate, Energy and Utilities on behalf of its subsidiary BlueNord
Energy Denmark A/S, BlueNord Gas Denmark A/S and CarbonCuts A/S.
The Company has provided a parent company guarantee to the Danish Ministry of Climate, Energy
and Utilities related to the Group’s activities on the Danish continental shelf, including BlueNord’s
participation in the Tyra West Pipeline and the Lulita licence. The Company has also provided a parent
company guarantee towards the lenders in relation to the Company’s USD 1.4 billion reserve-based
lending facility and customary obligations/guarantees under joint operating agreements. BlueNord
has also provided a parent company guarantee to Shell Energy Europe Limited in relation to its
subsidiary BlueNord Energy Denmark A/S’s obligations under a gas offtake and transportation
agreement capped at EUR 30 mill.
Furthermore, the Company has provided a parent company guarantee to Total E&P Denmark A/S for
its obligations under the JOA together with a guarantee from Shell. BlueNord has provided standby
letters of credit of USD 100 million, issued under the LC tranche of the USD 1.4 billion RBL facility for the
benefit of Shell in connection with this guarantee.
In relation to BlueNord’s historic operations in the UK North Sea, the Company has issued a parent
company guarantee on behalf of its subsidiaries BlueNord UK Ltd and BlueNord Energy UK Limited.
On 31 December 2012, BlueNord issued a parent company guarantee on behalf of its subsidiary
Noreco Norway AS. BlueNord guarantees that, if any amounts become payable by Noreco Norway
AS to the Norwegian Secretary of State under the terms of the licences and the company does not
repay those amounts on first demand, BlueNord shall pay to the Norwegian Secretary of State on
demand an amount equal to all such amounts. Noreco Norway AS was liquidated in 2018, however as
per 31 December 2024, the guarantee has not been withdrawn.
7 Shareholders’ equity
Changes in equity
All figures in USD million
Share
capital
Share
premium
Treasury
reserve
Other
equity Total
Equity 31 December 2023 1.7 782.9 (0.1) (395.6) 388.9
Issue of shares 0.0 4.2 – – 4.2
Sale of shares – – 0.1 1.4 1.5
Share-based incentive programme – – – 1.5 1.5
Net result for the period – – – (49.2) (49.2)
Equity 31 December 2024 1.7 787.2 – (442.0) 346.9
8 Share capital and shareholder information
2024 2023
Ordinary shares 26,498,640 26,205,849
Treasury shares – (100,521)
Total s hares 26,498,640 26,105,328
Par value in NOK 10 10
There is only one single class of shares in the Company and all shares have equal rights.
126 BlueNord
8 Share capital and shareholder information continued
Changes in number of shares and share capital:
No. of shares Share capital*
Number of shares and share capital as of 1 January 2023 25,708,424 1.7
Issue of shares 497,425 0.0
Share capital as of 31 December 2023 26,205,849 1.7
Issue of shares 292,791 0.0
Share capital as of 31 December 2024 26,498,640 1.7
No. of shares
Treasury share
reserve*
Treasury shares as of 1 January 2023 (137,162) (0.1)
Sale of Treasury shares 36,641 0.0
Treasury shares as of 31 December 2023 (100,521) (0.1)
Sale of Treasury shares 100,521 0.1
Treasury shares as of 31 December 2024 – –
* In USD million.
Changes in 2024
During 2024 the Company issued 292.791 shares in relation to exercise of share options held by
members and former member of the Board and former member of the executive management group,
in addition to the second award of the Long-Term Incentive (LTI) programme.
The Company sold 100,521 of its own shares in relation to exercise of share options held by former
member of the Board.
Overview of shareholders at 31 March 2025:
Shareholder* Shareholding Ownership share Voting share
Euroclear Bank S.A./N.V. 6,872,158 25.9 % 25.9 %
Goldman Sachs International 5,123,261 19.3 % 19.3 %
The Bank of New York Mellon SA/NV 2,279,864 8.6 % 8.6 %
SOBER AS 1,850,000 7.0 % 7.0 %
J.P. Morgan Securities LLC 1,482,181 5.6 % 5.6 %
J.P. Morgan Chase Bank, N.A., London 816,890 3.1 % 3.1 %
State Street Bank and Trust Comp 787,902 3.0 % 3.0 %
Citibank, N.A. 489,581 1.8 % 1.8 %
BARCLAYS CAPITAL LUXEMBOURG SARL 450,000 1.7 % 1.7 %
UBS Switzerland AG 448,391 1.7 % 1.7 %
Sbakkejord AS 417,058 1.6 % 1.6 %
J.P. Morgan SE 349,569 1.3 % 1.3 %
FINSNES INVEST AS 316,000 1.2 % 1.2 %
FJORD & ATOLL SOSYFR AS 308,070 1.2 % 1.2 %
HANASAND 292,412 1.1 % 1.1 %
VELDE HOLDING AS 245,000 0.9 % 0.9 %
ALTO HOLDING AS 244,700 0.9 % 0.9 %
CLEARSTREAM BANKING S.A. 198,115 0.7 % 0.7 %
Caceis Bank 186,695 0.7 % 0.7 %
The Bank of New York Mellon 186,210 0.7 % 0.7 %
Total 23,344,057 88.1 % 88.1 %
Other owners (ownership <0,53%) 3,154,583 11.9 % 11.9 %
Total number of shares at 31 March 2025 26,498,640 100.0 % 100.0 %
* Nominee holder.
Notes continued
127 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
9 Payroll expenses and remuneration
USD million 2024 2023
Salaries (incl. Directors' fees) (4.7) (2.6)
Social security tax (3.4) (0.9)
Pension costs
1)
(0.2) (0.1)
Costs relating to share-based payments 0.1 (1.9)
Other personnel expenses (0.2) (0.2)
Total personnel expenses (8.4) (5.8)
Average number of employees 7.8 8.0
1) Norwegian companies are obliged to have occupational pension in accordance with the Norwegian Act related to mandatory
occupational pension. BlueNord ASA meets the Norwegian requirements for mandatory occupational pension (‘obligatorisk
tjenestepensjon’).
Increased salaries in 2024 due to restructuring cost related to reorganisation. High social security
tax is related to the exercise of directors’ share options and restructuring cost. The Company’s
previous Options programme expired August 2024, and BlueNord has no longer any outstanding
options remaining. Cost related to share-based payments in 2024 are influenced by adjustments due
toleavers.
For further information on remuneration to key management personnel and Board of Directors, please
see note 8 in the Consolidated Financial Statement.
10 Write-down of financial assets
USD million 2024 2023
Net impairment loans to subsidiaries (1.3) (0.5)
Net reversal of prior years impairments on loans to subsidiaries – 0.5
Net impairment of financial assets (1.3) (0.0)
Write-down of loans to subsidiaries in 2024 consists of impairment of loans in BlueNord Energy UK Ltd
and BlueNord UK Ltd. The intercompany loans to the UK investment are impaired to zero.
Write-down of loans to subsidiaries in 2023 consists of impairment of loans in BlueNord UK Ltd.
The reversal of previous years’ impairment is related to BlueNord Energy Ltd. The intercompany loans
to the UK investment are impaired to zero.
11 Tax
Reconciliation of nominal to actual tax rate:
USD million 2024 2023
Result before tax (49.2) (10.4)
Corporation income tax of income (loss) before tax -22% (10.8) (2.3)
Calculated tax expense (10.8) (2.3)
Permanent differences 4.7 1.0
Changes in deferred tax assets – not recognised 6.1 1.3
Income tax expense – –
Deferred tax liability and deferred tax assets:
USD million 2024 2023
Net operating loss deductible 142.8 98.1
Interest limitation carried forward 44.8 34.7
Fixed assets 0.0 0.0
Current assets (64.9) (24.2)
Liabilities 21.0 34.5
Tax base deferred tax liability/deferred tax asset 143.8 143.1
Net deferred tax liability/(deferred tax asset) (22%) (31.6) (31.5)
Unrecognised deferred tax asset 31.6 31.5
12 Other operating expenses and audit fees
USD million 2024 2023
Lease expenses (0.2) (0.1)
IT expenses (1.5) (0.7)
Travel expenses (0.2) (0.2)
General and administrative costs (0.2) (0.2)
Consultant fees (2.7) (1.8)
Other operating expenses (0.6) (0.5)
Total other operating expenses (5.3) (3.5)
Expensed audit fee:
USD 1000, excl. VAT 2024 2023
Auditor's fees (312.5) (232.7)
Other services (86.7) (86.1)
Total audit fees (399.2) (318.8)
Notes continued
128 BlueNord
13 Related party transactions
Transactions with related party
USD million 2024 2023
a) Allocation of cost to Group companies, Management fee 3.4 3.7
b) Allocation of cost to Group companies, IT expenses 0.8 0.7
c) Purchases of services – –
d) Sale of assets – –
Interest income and interest expenses to Group companies are presented separately in the income
statement.
Services are charged between Group companies at an hourly rate which corresponds to similar rates
between independent parties. Allocation of IT and management fee to Group companies amounts to
USD 4.2 million for 2024.
Balances with group companies
Carrying value of balances with Group companies are stated on the face of the balance sheet and are
all related to 100 percent controlled subsidiaries.
BlueNord did not have any other transactions with any other related parties during 2024. Please see
the Executive Remuneration Report 2024 for Director's fee paid to shareholders and remuneration
tomanagement.
Notes continued
129 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Independent Auditors’ Report
Report on the Audit of the Financial Statements
To the General Meeting of BlueNord ASA
Opinion
We have audited the financial statements of BlueNord ASA, which comprise:
• the financial statements of the parent company BlueNord ASA (the Company), which comprise the
balance sheet as at 31 December 2024, the income statement and cash flow statement for the year
then ended, and notes to the financial statements, including a summary of significant accounting
policies, and
• the consolidated financial statements of BlueNord ASA and its subsidiaries (the Group),
which comprise the consolidated statement of financial position as at 31 December 2024, the
consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including material accounting policy information.
In our opinion
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2024, and its financial performance and its cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway, and
• the consolidated financial statements give a true and fair view of the financial position of the Group
as at 31 December 2024, and its financial performance and its cash flows for the year then ended in
accordance with IFRS Accounting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Company
and the Group as required by relevant laws and regulations in Norway and the International Ethics
Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other 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 opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 17 years from the election by the general meeting of the
shareholders on 25 April 2008 for the accounting year 2008.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Assets retirement obligations
Refer to note 3.2 Critical accounting estimates (section d) and assumptions and note 22 Assets
retirement obligations.
The key audit matter How the matter was addressed in our audit
As at 31 December 2024, the Group has non-
current asset retirement obligations of USD
1,110.6 million and current asset retirement
obligations of USD 11.4 million.
The determination of the asset retirement
obligations (“ARO”) involves judgement
related to the estimation of future costs, the
discount rate applied, the economic cut-off
date for fields and the related timing of the
expected costs.
Significant auditor judgment is required when
evaluating the asset retirement obligations
and to determine whether there is sufficient
evidence available to support the estimates
and judgments made.
Our audit procedures in this area included:
• Assessed management’s process to determine
the present value of the estimated future
decommissioning and removal expenditures
required by local conditions and requirements.
• We critically assessed and challenged the link
between the economic cut-off date for fields for
consistency to the reserves estimate, for which a
third-party assessment has been obtained.
• We assessed and challenged managements
expected future costs estimates by comparing these
to reports from the operator company and evaluating
the historical accuracy of the cost estimates.
• Assessed the discount and inflation rate applied with
reference to industry practice along with market and
Company data.
• We assessed the mathematical and methodological
integrity of management’s valuation model.
We also evaluated the adequacy and appropriateness
of the disclosures in the financial statements.
130 BlueNord
Independent Auditors’ Report continued
Other Information
The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information accompanying the financial statements.
The other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report nor the other information accompanying the financial
statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information accompanying the financial statements. The purpose
is to consider if there is material inconsistency between the Board of Directors’ report and the
other information accompanying the financial statements and the financial statements or our
knowledge obtained in the audit, or whether the Board of Directors’ report and the other information
accompanying the financial statements otherwise appears to be materially misstated. We are required
to report if there is a material misstatement in the Board of Directors’ report or the other information
accompanying the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Directors' report applies correspondingly to the statement on Corporate
Governance.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements of the Company that give
a true and fair view in accordance with the Norwegian Accounting Act and accounting standards
and practices generally accepted in Norway, and for the preparation of the consolidated financial
statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards
as adopted by the EU. Management is responsible for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern. The financial statements of the Company use the going concern basis of accounting insofar
as it is not likely that the enterprise will cease operations. The consolidated financial statements of the
Group use the going concern basis of accounting unless management either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis
of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. 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 internal control relevant to the 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 and the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a 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 financial statements or, if such
disclosures are inadequate, to modify our opinion. 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 the
Company and the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the Group audit. We remain
solely responsible for our audit opinion.
131 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of BlueNord ASA, we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 5967007LIEEXZXGE3C16-2024-12-31-0-en, have been prepared,
in all material respects, in compliance with the requirements of the Commission Delegated Regulation
(EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant
to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial
statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
regulation. This responsibility comprises an adequate process and such internal control as
management determines is necessary.
Auditor’s Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in compliance
with ESEF. We conduct our work in compliance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical
financial information”. The standard requires us to plan and perform procedures to obtain reasonable
assurance about whether the financial statements included in the annual report have been prepared in
compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s
processes for preparing the financial statements in compliance with the ESEF Regulation. We
examine whether the financial statements are presented in XHTML-format. We evaluate the
completeness and accuracy of the iXBRL tagging of the consolidated financial statements and assess
management’s use of judgement. Our procedures include reconciliation of the iXBRL tagged data
with the audited financial statements in human-readable format. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Oslo, 8 April 2025
KPMG AS
Roland Fredriksen
State Authorised Public Accountant
(This document is signed electronically)
Independent Auditors’ Report continued
132 BlueNord
Statement of Compliance
Board and management confirmation
Today, the Board of Directors and the Chief Executive Director reviewed and approved the Board of
Directors’ Report and the BlueNord ASA consolidated and separate annual financial statements as of
31 December 2024.
To the best of our knowledge, we confirm that:
• the BlueNord ASA consolidated annual financial statements for 2024 have been prepared in
accordance with IFRS Accounting Standards as adopted by the EU, and additional Norwegian
disclosure requirements in the Norwegian Accounting Act;
• the financial statements for BlueNord ASA have been prepared in accordance with the Norwegian
Accounting Act and Norwegian Accounting Standards;
• that the Board of Directors’ report for the Group and the parent company is in accordance with the
requirements in the Norwegian Accounting Act and Norwegian Accounting Standard no. 16;
• that the information presented in the financial statements gives a true and fair view of the Company’s
and the Group’s assets, liabilities, financial position and results for the period viewed in their entirety;
• that the Board of Directors’ Report gives a true and fair view of the development, performance,
financial position, principle risks and uncertainties of the Company and the Group.
Oslo
8 April 2025
Glen Ole Rødland Tone Kristin Omsted Marianne Lie Robert J. McGuire
Executive Chair Board member Board member Board member
Peter Coleman Kristin Færøvik João Saraiva e Silva Euan Shirlaw
Board member Board member Board member Chief Executive Officer
133 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Alternative Performance Measures
BlueNord chooses to disclose Alternative Performance Measures as part of its financial reporting as a
supplement to the financial statements prepared in accordance with International Financial Reporting
Standards. This information is provided as a useful supplemental information to investors, security
analysts and other stakeholders to provide an enhanced insight into the financial development of
BlueNord’s business operations and to improve comparability between periods.
Abandonment spent (abex) is defined as the payment for removal and decommissioning of oil
fields, to highlight the cash effect for the period.
EBITDA Earnings before interest, taxes, depreciation, depletion, amortisation and impairments.
EBITDA assists in comparing performance on a consistent basis without regard to depreciation and
amortisation, which can vary significantly depending on accounting methods or non-operating factors
and provides a more complete and comprehensive analysis of our operating performance relative to
other companies.
Adj. EBITDA is EBITDA adjusted for the cost based on fair value of the share-options programme
and Non-payment insurance as these costs are related to the DUC acquisition and not directly related
to the operational result for the year.
USD million 2024 2023
EBITDA 353.9 421.4
Non-payment insurance 6.0 6.4
Share-option programme
1)
2.5 0.0
Restructuring cost
2)
1.8 –
Adj. EBITDA 364.2 427.8
1) Corrected prior year to only include the share option programme awarded after the DUC acquisition, hence the Long-Term Incentive
(LTI) Programme is not adjusted for.
2) Restructuring cost related to reorganisation.
Cash flow from operating activities before tax is defined as net cash flow from operating
activities excluding taxpayments.
USD million 2024 2023
Cash flow from operating activities before tax 383.3 479.7
Tax received/(paid) (74.8) (229.8)
Net cash flow from operating activities 308.5 249.9
Interest-bearing debt defined as the book value of the current and non-current
interest-bearing debt.
USD million 31.12.2024 31.12.2023
Convertible bond loans (233.1) (201.7)
Senior Unsecured bond loan (303.5) (169.1)
Reserve-based lending facility (834.3) (820.8)
Interest-bearing debt (1,370.9) (1,191.6)
Net interest-bearing debt is defined by BlueNord as cash and cash equivalents reduced by current
and non-current interest-bearing debt. The RBL facility and bond loans are included in the calculation
with the total amount outstanding and not the amortised cost including transaction cost.
USD million 31.12.2024 31.12.2023
Cash and cash equivalents 250.6 166.7
Convertible bond loan (247.1) (228.4)
Senior unsecured bond loan (300.0) (175.0)
Reserve-based lending facility (880.0) (850.0)
Net interest-bearing debt (1,176.5) (1,086.7)
Adjustment for convertible bond loans 247.1 228.4
Include issued letters of credit (100.0) (100.0)
Net interest-bearing debt as per debt covenant (1,029.4) (958.3)
134 BlueNord
Supplementary Oil and Gas Information (unaudited)
In March 2025, the Group reported oil and gas 2P reserves and near-term 2C resources, the report is reported separately from the Annual Report 2024. The Reserves Evaluator ERC Equipoise Ltd (‘ERCE’)
has carried out an independent evaluation of the hydrocarbon Reserves and certain Contingent Resources held by BlueNord Energy Denmark A/S in the DUC Sole Concession area, offshore Denmark.
ERCE has carried out this work in accordance with the June 2018 SPE/WPC/AAPG/SPEE/SEG/SPWLA/EAGE Petroleum Resources Management System (‘PRMS’) as the standard for classification
andreporting.
In line with the Annual Statement of Reserves and Resources, the reported reserves include remaining volumes expected to be recovered based on reasonable assumptions about future technical, economic,
fiscal, and financial conditions based on year end 2024 data. The calculations of recoverable volumes are associated with significant uncertainties. The 2P estimate represents a best estimate of reserves.
The reported contingent resources (near-term 2C) are potentially recoverable volumes from known accumulations for which development plans are being matured or further evaluation is under way with a
view to development in the near term. This does not include the full portfolio of BlueNord’s 2C resources.
135 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Supplementary Oil and Gas Information (unaudited) continued
Total 2P reserves and near-term 2C resources as of 31.12.2024
Field Hub Status
Liquids
(mmbbl)
Gas
(mmboe)
OilEq.
(mmboe)
Interest
%
OilEq.
(mmboe)
Dan Dan On Production 52.6 8.0 60.6 36.8 % 22.3
Kraka Dan On Production 8.0 0.2 8.2 36.8 % 3.0
Gorm Gorm On Production 9.0 0.1 9.1 36.8 % 3.3
Skjold Gorm On Production 17.1 0.7 17.8 36.8 % 6.5
Rolf Gorm On Production 1.4 0.1 1.5 36.8 % 0.5
Halfdan (incl. Halfdan North East) Halfdan On Production 68.4 30.4 98.8 36.8 % 36.4
Tyra Ty ra On Production 32.2 85.8 118.0 36.8 % 43.4
Valdemar Tyra On Production 37.4 19.3 56.8 36.8 % 20.9
Roar Tyra On Production 6.8 14.7 21.4 36.8 % 7.9
Harald (Incl HEMJ) Tyra On Production 10.7 30.7 41.3 36.8 % 15.2
Lulita Ty ra On Production 1.8 1.1 3.0 36.8 % 0.8
Halfdan HCA Gas Lift Halfdan Approved for Development 0.4 7.9 8.3 36.8 % 3.1
Halfdan Infill (Ekofisk) Halfdan One well approved, one well justified 5.5 4.8 10.3 36.8 % 3.8
Halfdan North (Phase 1) Halfdan Justified for Development 22.3 3.4 25.7 36.8 % 9.5
Valdemar UC Infill Tyra Justified for Development 3.1 3.1 6.1 36.8 % 2.3
Tyra North (Phase 1) Tyra Justified for Development 17.6 22.4 40.0 36.8 % 14.7
Total 2P reserves 294.3 232.8 527.0 193.7
Gorm WROM III 3.3 0.4 3.6 36.8 % 1.3
Halfdan Tor NE Infill 1.4 1.0 2.4 36.8 % 0.9
Halfdan North Phase 2 11.9 1.8 13.7 36.8 % 5.1
Tyra North Phase 2 3.4 10.5 14.0 36.8 % 5.1
Valdemar Bo South 18.5 10.0 28.5 36.8 % 10.5
Svend Re-development 11.4 1.7 13.1 36.8 % 4.8
Total 2C resources 49.9 25.3 75.3 27.7
Total 2P reserves and near-term 2C Resources 344.2 258.1 602.3 221.4
136 BlueNord
137 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Appendices
05
Appendix 1. UN Sustainable Development Goals 138
Appendix 2. Environment – Climate 139
Appendix 3. Environment – Nature 140
Appendix 4. BlueNord | Transparency Act Report 141
Information about BlueNord 143
138 BlueNord
Appendix 1. UN Sustainable Development Goals
UN Sustainable Development Goals
The United Nations Sustainable Development Goals (‘SDGs’) provide a blueprint for achieving a better and more sustainable future for all by addressing global challenges such as poverty, inequality, climate
change, environmental degradation, peace, and justice. BlueNord continues to identify our best solutions to contribute to the SDGs as we aim to address various environmental, social and economic
challenges facing our world today. Examples of our actions, programmes and the SDGs to which they relate are demonstrated here and throughout this report.
Sustainability impact area SDGs 2024 focus
People BlueNord promotes the welfare and
rights of employees, communities,
and other stakeholders.
• Ensure safe operations along with DUC operator.
• Promote healthy and safe working environment.
• Respect Human and Labour Rights.
• Foster DEI.
• Deliver continuous professional development for our employees.
• Create awareness and provide training in HSE and DEI.
Climate and sustainable energy BlueNord identifies and invests in
initiatives that reduce emissions and
ensure secure access to locally
produced energy.
• Reduce GHG emissions (reduce and eliminate flaring, detect and reduce methane).
• Improve energy efficiency at DUC operations with pressure loss reductions and
increased uptime.
• Invest in carbon storage to contribute to Denmark’s CCS goals and net zero target.
• Ensure access to locally produced, affordable, reliable, and secure energy for EU.
Environment BlueNord identifies and invests in
initiatives that reduce environmental
impact and promote sustainability.
• Support DUC’s ambition to locally recycle obsolete infrastructure.
• Produce a Biodiversity Action Plan to evaluate populations of flora and fauna near
offshore installations.
• Reduce DUC operations’ atmospheric emissions by 40 percent in 2030
compared to 2015.
• Minimise chemicals and hydrocarbons from produced water discharged to sea
in strict adherence with discharge permits and environmental regulations.
Responsible and ethical business BlueNord’s Board of directors and
executives are expected to demonstrate
integrity, honesty, and accountability in
their decision-making.
• Promote Board diversity and independence.
• Demonstrate ethical leadership.
• Maintain transparency in market communication and disclosures.
• Comply with local legislations, reporting requirements and standards.
• Create shared economic value.
Partnerships BlueNord collaborates with DUC’s
partners, governmental bodies, civil
society, businesses, academia, and
NGOs to address challenges effectively.
• Engage with local communities.
• Engage with DUC partners and Operator to encourage adoption of best
practices; advocating for alignment with Danish and EU regulations.
BlueNord’s contribution to the UN’s 2030 sustainable development agenda.
139 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Appendix 2. Environment – Climate
Performance status 2024: Atmospheric emissions
TOPIC DESCRIPTION
CO
2
emissions
Main CO
2
source is the fuel gas for production. Figure also includes flaring and other
fuels contribution.
Fuel
consumption
Fuel is consumed primarily by single cycle gas turbine powering generators, gas
compressors, and pumps. Diesel generators are being used when power cannot be
generated with fuel gas. This is typically the case on drilling rigs, during production
shutdown or on platforms without processing capacities and without power supply from
adjacent platforms.
Flaring
Flaring of natural gas is occurring on all hubs when required to allow safe operation
during production upsets and non-routine operation.
Fugitive
emissions
Venting of gas from production facilities is to ensure safe operation. Venting is
primarily relevant for systems operating at atmospheric pressure, but it also occurs
during facilities maintenance.
TOPIC DESCRIPTION
NOx and SOx
emissions
The operation of gas turbine drives and diesel engines offshore causes emissions
of nitrogen oxides and sulphur oxides.
CH4
CH4 and non-methane volatile organic compounds (‘nmVOC’) come directly from our gas.
They can originate from unburned parts of our fuel gas or flare gas (they do not burn at 100
percent efficiency) or from releases, i.e. process vents or tiny leaks that are below threshold
limits of our safety detection systems.
nmVOC
CH4 and nmVOC come directly from our gas. They can originate from unburned
parts of our fuel gas or flare gas (they do not burn at 100 percent efficiency) or from
releases, i.e. process vents or minor leaks that are below threshold limits of our
safety detection systems.
GHG
emissions
Greenhouse gases that are released to the atmosphere as a result of the
operations. Green house gases are gases that trap heat in the atmosphere and
are responsible for global warming. The following gases are considered GHG:
Carbon dioxide.
(CO
2
), Methane (CH
4
), Nitrous Oxide (N
2
O), Perfluorocarbons (PFCs), Sulphur
hexafluoride (SF
6
), Hydrofluorocarbons (HCFs), Chlorofluorocarbons (CFCs),
nitrogen oxides (NOx).
GHG intensity
GHG intensity corresponds to total GHG emissions in CO
2
equivalent over total
production expressed in barrel of oil equivalent.
ETS reporting
perimeter
DUC offshore fixed installations are subject to the EU Emissions Trading System.
The emissions included in the system are currently limited to CO
2
, which is emitted
as a result of fuel combustion (gas and diesel) and flaring.
140 BlueNord
Appendix 3. Environment – Nature
Performance status 2024: Discharge to sea
TOPIC DESCRIPTION
Discharge
to sea
Water is produced from the fields together with the hydrocarbons. For the fields
Dan and Halfdan, the produced water is discharged to the sea after separation and
cleaning. In the fields Gorm and Skjold, the water is reinjected. The water produced
is partly formation water and partly injected sea water. In 2023, 25.1 percent of the
produced water was reinjected. Oil is discharged to sea as part of the produced
water and the efficiency of oil/water separation is a key factor for the oil in water
concentration. The increase in concentration of oil in water and the higher discharge
from 2022 to 2023 is mainly due to separator issues on Dan. The level of discharge
is within the legal limit.
Spills
Spills from closed systems and from handling of various liquids are reported in
accordance with environmental regulation. In 2023, fifteen oil and diesel spills
and twenty chemical spills were reported, compared with six oil and diesel spills
and thirty two chemical spills in 2022. Ongoing efforts are made to minimise the
number and level of spills that occur.
TOPIC DESCRIPTION
Chemical
usage
Chemicals are used for various purposes in the oil and gas industry. They are used
to drill, complete, stimulate and operate wells, as well as to enhance oil recovery.
Some of the chemicals help protect the production equipment and pipelines from
corrosion, scaling, souring etc.
Each chemical is categorised with a colour according to OSPAR representing how
harmful the chemicals are to the environment.
Chemical
discharge
Some chemicals will be discharged to sea with the discharged produced water after
separation or unintentionally through spills. The discharge of chemicals is highly
regulated through discharge permits and operators must follow regulation and best
practices to minimise the environmental impact.
141 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
Account of the due diligence assessment
BlueNord ASA (‘BlueNord’) is committed to respecting fundamental human and labour rights, both in
operations and in relations with business partners. At BlueNord, we comply with all applicable laws and
regulations, including the Norwegian Transparency Act, entered into force on 1 July 2022. The Act’s
intention is to promote companies’ respect for fundamental human rights and decent working conditions.
We recognise that our activities can cause, contribute, or be linked to negative human rights and other
social impacts. BlueNord operates in a low-risk environment regarding human rights abuse, as all our
operations are in Denmark. Furthermore, most of our vendors are based in Denmark or other low-risk
countries. However, we are aware of potential human and labour rights risks that may occur in our
operations or further up or down in our supply chain.
In cases where BlueNord operations might have caused or contributed to adverse human rights
impact, we will provide or cooperate in providing appropriate remediation to affected stakeholders.
Organisation
BlueNord is a material independent E&P company with a ‘see to it’ duty, meaning an obligation to
ensure that the operator carries out its work in accordance with the regulatory requirements while
reducing risks and environmental impact to a minimum.
The executive management is responsible for overall risk management with the Chief Corporate
Affairs Officer responsible for the work carried out regarding the Transparency Act. This work is
included in BlueNord’s ESG work. In 2020, an ESG Committee was established to support BlueNord’s
commitment to ESG and to evolve its contribution in the energy transition. In 2024 the ESG Committee
was incorporated into the Audit Committee.
Guidelines and routines
BlueNord has developed guidelines to prevent violations of human rights, indecent working conditions,
damage to the environment, and involvement with corruption. The relevant guidelines are described
in Corporate Social Responsibility Guidelines, including the Code of Conduct as well as HSE policy,
approved by the Board of Directors.
In October 2022, BlueNord conducted an overall due diligence assessment in accordance with
the requirements of the Transparency Act based on a methodology including ISO Standard 31000
for managing risks. The due diligence is an on going risk management process to identify, assess,
prevent, and mitigate human rights risks across the entire value chain of the business. This process
applies to BlueNord’s operation including subsidiaries, where BlueNord has operational control,
associated activities within the value chain, and relevant stakeholders e.g., employees, suppliers,
and subcontractors. The Company is committed to perform an annual review of the due diligence
assessments on these topics to monitor and manage actual and potential adverse impacts on
human rights and working conditions.
Findings as of 2023
BlueNord performed an overall strategic risk assessment including risks associated with its operator.
The Company only holds interest in the DUC, which is operated by TotalEnergies.
In the risk assessment, BlueNord focused on the following five categories and related activities in their
business value chain: exploration, appraisal, development, production, and abandonment. Business
partners who provide the Company with goods and services that are not a direct part of the value
chain were also part of the assessment. These non-negligible expenditures are related to acquisition
of seismic data, IT and digitalisation services, office services, such as cleaning and canteen services,
and professional services, such as insurance, accounting, legal and other commercial or technical
advisers and hire of in-house technical specialists.
No negative consequences were discovered during the recent due diligence assessment, given that
BlueNord has limited activity in the various categories and operates within strong sector regulations.
When prioritising risks while identifying uncertainties, BlueNord highlighted yard activities, input
factors used in construction, and dismantling and managing steel and waste disposal when brought
to shore, as the most severe risks that may occur.
Measures
Concrete measures and initiatives have been identified to manage the identified severe risks that
may occur. Therefore, BlueNord approves all contractors proposed by the operator with a contract
value above DKK 100 million. If the contractor is based outside the EEA or the UK, the operator shall
demonstrate the contractor adheres to human rights and working conditions prior to such approval.
In addition, BlueNord shall visit the relevant yards when applicable. For the time being, BlueNord is
not involved in any activities which was highlighted during the due diligence assessment. In the case
of new activities or projects within one of these categories, there will be a need for assessing risks of
human rights and decent working conditions.
Results
BlueNord is constantly working to strengthen our work on human rights and decent working
conditions. We aim to review and revise our Corporate Social Responsibility Guidelines in accordance
with OECD’s guidelines and clarify our expectations to business partners. Furthermore, the measures
will help us establish governance documents, routines and instructions related to due diligence
processes and our supply chain to ensure that we apply the highest standards of professional and
ethical standards in the conduct of our business affairs. In addition, TotalEnergies has in 2023 provided
a letter of comfort related to their compliance programme. The main part of the Company’s supply
chain has been assessed with this.
The operator did not enter any major contracts, i.e. above 100 MDKK, with contractors outside EEA
or UK in 2024.
Appendix 4. BlueNord | Transparency Act Report
142 BlueNord
The overview below indicates where to find more relevant information to cover the reporting
requirements according to Section 5 of the Act in the Sustainability.
Requirement Page reference
A general description of the enterprise’s structure
and area of operations. 2-3
Guidelines and procedures for handling actual and
potential adverse impacts on fundamental human
rights and decent working conditions. 57-61
Information regarding actual adverse impacts and
significant risks of adverse impacts that the
enterprise has identified through its due diligence. 25-35
Information regarding measures the enterprise has
implemented or plans to implement to cease actual
adverse impacts or mitigate significant risks of
adverse impacts, and the results or expected results
of these measures. 25-35
Oslo
8 April 2025
Glen Ole Rødland
Executive Chair
Marianne Lie
Board member
Tone Kristin Omsted
Board member
Kristin Færøvik
Board member
Robert J. McGuire
Board member
Peter Colman
Board member
João Saraiva e Silva
Board member
Appendix 4. BlueNord | Transparency Act Report continued
143 Annual Report and Accounts 2024
Strategic Report Governance Report Sustainability Statements Financial Statements Appendices
ESEF information:
Name of reporting entity or other means of identification BlueNord ASA
Explanation of change in name of reporting entity or other means of
identification from end of preceding reporting period N/A
Domicile of entity Norway
Legal form of entity ASA
Country of incorporation Norway, UK, Denmark
Address of entity's registered office Nedre Vollgate 3, 0158 Oslo, Norway
Principal place of business Oslo
Description of nature of entity's operations and principal activities Oil and gas
Name of parent entity BlueNord ASA
Name of ultimate parent of group BlueNord ASA
Head Office BlueNord
Headquarter Nedre Vollgate 3, 0158 Oslo, Norway
Telephone +47 22 33 60 00
Internet www.bluenord.com
Organisation number NO 987 989 297 MVA
Financial Calendar 2024
14 May Annual General Meeting
07 May Q1 2024 Report
10 July Q2 2024 Report
31 October Q3 2024 Report
Board of Directors
Glen Ole Rødland Chair
Marianne Lie
Tone Kristin Omsted
Kristin Færøvik
Robert J. McGuire
Peter Colman
João Saraiva e Silva
Management
Euan Shirlaw Chief Executive Officer
Jacqueline Lindmark Boye Chief Financial Officer
Miriam Jager Lykke Chief Operating Officer
Cathrine Torgersen Chief Corporate Affairs Officer
Investor Relations
Phone +47 22 33 60 00
E-mail
investorrelations@bluenord.com
Annual Reports
Annual Reports for BlueNord are available on www.bluenord.com.
Quarterly publications
Quarterly Reports and supplementary information for investors and analysts
are available on www.bluenord.com. The publications can be ordered by
e-mailing investorrelations@bluenord.com.
News releases
In order to receive news releases from BlueNord, please register
on www.bluenord.com or e-mail investorrelations@bluenord.com.
BlueNord ASA
Org. number: 987 989 297
LEI Code: 5967007LIEEXZXGE3C16
Photographs provided courtesy of TotalEnergies, Helena Lopes, Marc Roussel and Tom Jersø
Information about BlueNord
BlueNord Annual Report and Accounts 2024
Oslo
Nedre Vollgt. 3
0158 Oslo,
Norway
London
25 Upper Brook Street
London, W1K 7QD,
United Kingdom
Copenhagen
Lyngbyvej 2
2100 Copenhagen Ø,
Denmark
www.bluenord.com