b'FINANCIAL AND OPERATIONAL PERFORMANCE 2019UpstreamSecuring the stability of our onshore production for another 20 to 25 years and continuing to feed our refinery remain a focus for Staatsolie. Each year as we produce oil, we deplete the fields with around 6 MM bbls. per year. We are continuously working to offset these declining resources through two steps. First, we are using various Enhanced Oil Recovery (EOR) and Improved Oil Recovery (IOR) techniques. Second, we are extending the boundary of our onshore fields with appraisal wells. These efforts contributed in a significant addition of20.7 MM STB of reserves, the highest addition over the last 7 years. The proved reservesas per December 31, 2019 are estimated at 89 MM STB. 2019 KEY FOCUS 2020 KEY FOCUS Work on polymer flooding, Full operation of polymer floodinga proven EOR technique. program by Q3 2020.We are securing long-term production from the onshorefields,tocontinuetomeetourtargetofapproximately16,500 barrels per day, or 6 MM barrels per year.Wim DwarkasingUpstream DirectorStaatsolies commercial production to date has been only in the onshore Tambaredjo, Calcutta and Tambaredjo Northwest fields. These onshore fields are producing approximately 16,500 bopd, and Staatsolie is the sole operator.To help us extend our current production from onshore fields for another 20 to 25 years, we defined a roadmap for EOR and IOR in 2019. We subsequently took many steps leading up to the commercial implementation of a polymer flooding program; we conducted studies, selected contractors, and prepared for the systems and facilities that are expected to be in full operation by September 2020.Polymer flooding is only one project in an extended EOR effort that may have many forms in the future. A pilot that we intend to start in Q2 2020 involves using bio enzymes to enhance production. Another pilot which is prepared to be executed in the first half of 2020 is radial jet drilling.89 6.05 MMbblsMMbbls of crude production in 2019 from our three onshore fieldsof proven reserves atthe end of 2019US$9.42per barrel average production cost in 2019, in the lowest cost quartile14 STAATSOLIE 2019 ANNUAL REPORT'