b'achieved that goal in 2018. We managed our3. OPTIMIZE DOWNSTREAMoperations to be successful in a US$ 40-60/bbl range, which we expect international oil prices toWe continue to make improvements at the be for the foreseeable future. refineryoperations.In2018,ourrefineryIn 2018, we produced an average of 16,383produced 2.74 MMbbls of high-end products. By bbls Saramacca Crude per day, which is2020, we are targeting sustainable production approximately 6 MMbbls produced in total on of 10,050 bbls of high-end products per day. a yearly basis, nearly 100% of our target. The focus remains to ensure a steady output of products while rigorously lowering costs.Going forward, we look to secure production of approximately 6 MMbbls per year from our4. PREPARE FOR AN IPO3existingonshorefields.Tohelpusdoso,we As part of our internal transformation, we plan to will continue to aggressively pursue Enhanced/ enter the international capital market, preferably Improved Oil Recovery (EOR/IOR) methods, withthrough an Initial Public Offering (IPO). A major an eye to increasing our ultimate recovery rate tostep in that process during 2018 was assigning 25-27%. Ernst & Young as our external auditor to ensure With recent discoveries in Guyana near thethatourfinancesarereportedinaccordancewithborder of Suriname, our optimism remains highInternational Financial Reporting Standards (IFRS).for an imminent offshore commercial discovery. Tobereadytoreapthebenefitsofsucha 5. SIMPLIFY OUR PROCESSESdiscovery, we continue our efforts to become theIn 2019, continuing to simplify our corporate partner of choice for international oil companiesprocesses will be a major priority. We will focus (IOCs).Reflectingindustryconfidencein on eliminating time-consuming, error-prone Surinames oil future, Staatsolie signed two newor non-value-adding steps in our day-to-day production sharing contracts in 2018, with IOCsoperations.Cairn Energy and Tullow Oil. An even greater indicationofthatsharedconfidence:multiple 6. BE PEOPLEFOCUSEDIOCs will be drilling wells offshore Suriname in 2019 and 2020. Staatsolie is determined to have the right In addition to transforming our own companypeople in the right roles at all times. Tactics we into a world-class enterprise capable ofhave enacted to improve our peoples success participating in the development of a majorinclude succession planning and implementing oil discovery, Staatsolie is looking to help thesecondments to IOCs in order to accelerate the business community and educational institutes ofdevelopment of our talent.Suriname prepare for the opportunities that we believe are coming. To that end, we conductedMOVING FORWARDan Industrial Baseline Study in 2018 together with our offshore partners, to highlight all the areas in which companies and educational institutesWith promising prospects both nearshore and need to ramp up their capabilities to serve theoffshore and a clear strategy for success, both international oil industry. near-term and long-term, it is an exciting time for We are also encouraging the government ofStaatsolie. I would like to thank our employees, Suriname to prepare a plan for handling its oilour Supervisory Board and our Shareholder andgasresourcesinawaythatfullybenefitsthe for their continued support as we look forward countrybeforesuchadiscoveryismade. to entering a new era for Staatsolie and for Suriname, in 2019 and beyond.Rudolf Elias Managing Director7'