b'Letter of theManaging Director2019 was a remarkable year for Staatsolie: the year of our first offshore discovery. The discovery of hydrocarbons in offshore Block 58 in Q4 2019 signals a transformation, both for our company and for Suriname, a development that Staatsolie has been preparing for over the past four years through our Strategy for Success.Staatsolies contribution to the Government FINANCIAL RESULTS OVERVIEWof Suriname, consisting of taxes, dividend The financial results in 2019 reflect ourand royalties, amounted to US$ 172 million commitment to develop Surinamesin 2019, compared to US$ 150 million in hydrocarbon potential, while we maximize2018. value.In 2019 we achieved consolidated grossMANY STRENGTHS .revenues of US$ 500 million, down 1%Today, Staatsolie is stronger than we have from prior year.ever been. We are more diversified, not only Our 2019 EBITDA reached US$ 368 million,in our value-add oil business refining crude compared to US$ 353 million in 2018. to ultra-low sulphur diesel and gasoline, butOur profit before tax in 2019 was US$ 180also in producing electricity and successfully investing in gold. Moreover, we are building million, compared to US$ 149 million inan increasingly capable workforce. 2018. These results were impacted by theWe are very satisfied with our overall performance in 2019. Upstream, we average posting price of our crude, whichremained a 1st quartile crude oil producer. was US$ 54/bbl in 2019, compared to We are aggressively pursuing Enhanced Oil US$ 61/bbl in 2018. Recovery in order to increase our recoveryStaatsolie enjoys the strength ofrate. Our continuous efforts to replacediversification, which includes a 25%declining reserves resulted in a significant interest in the Merian gold mine operatedaddition of 20.7 MM STB, the highest over by Newmont Suriname. Merian yieldedthe last 7 years. Downstream, we are 524,000 oz. and contributed US$ 101further optimizing the business by reducing million to our EBITDA in 2019, a resultoperational costs and increasing production. supported by gold prices reachingUS$ 1,482/oz. in Q4 2019.6 STAATSOLIE 2019 ANNUAL REPORT'