b'UPSTREAMStaatsolies Upstream directorate is responsible for the production of Saramacca Crude from oilfields in the Saramacca District of Suriname. Wells in Tambaredjo, Calcutta and Tambaredjo-Northwest produce 6 MMbbls annually, which are transported via pipeline to our downstream refinery at Tout Lui Faut.2021 SYNOPSISStaatsolie maintained its position as a low-cost quartile producer in 2021. Continuous cost-cutting measures, such as workforce optimization, improved contracts with suppliers and efficiency initiatives, contributed to this result. The realized production cost ofUS$ 8.56 per barrel (US$ 8.32 per barrel in 2020) significantly improved upon the initial target of US$ 9.60 per barrel. Going forwardwe will continue to be a low-cost quartile producer, through efforts including increased automation and close monitoring ofcost-reduction opportunities.We achieved our annual production target despite the significant challenges of major flooding in the second quarter and ongoing COVID-related delays. Diligent recovery efforts and extra production initiatives in the second half of the year made this possible. The pandemic, with its impact on supply timelines and workforceThe safety of our employees is paramount, and availability, continued to affect the way wewe were able to boost our safety culture with normally do business. Thanks to the resiliencethe implementation of a Major Operating Risk and commitment of our workforce, we were ableRegister (MORR) for all Upstream operations. to overcome the years challenges and meet ourMORR identifies risks and puts preventative production and cost targets. and recovery barriers in place to address them.32 STAATSOLIE 2021 ANNUAL REPORT'