Wellsite Automation Conference 2017

Desikan Sundararajan, PhD

Reducing Methane Emissions E&P Perspective

CONFIDENTIAL Houston TX

Date: January 25, 2017

Production 1.96 mmboe/d

Countries 37

Market Cap USD 61.53 billion

VALUES

(Jan 18, 2017)

Proven Reserves 5,060 mmboe

2017 Corporate Knights “100 Most Sustainable Corporations in the World”

US Overview

Global overview

Employees 21,000+

Introduction Perception Science Practices Technology 2

Perception Operations

Technology

Operational Practices

Science

Regulations

Acceptable Methane Emissions

Introduction Perception Science Practices Technology 3

Perception

Introduction Perception Science Practices Technology 4

EPA O&G Methane Inventory

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012 2013 2014

kt m

etha

ne/y

ear

Year

Original Reporting Year 2014 Report 2015 Report 2016 Report

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks

Introduction Perception Science Practices Technology 5

2013 Emissions Distribution – Production Field Operations

Pneumatic Controllers

Tank Venting

Venting & Fugitives

Combustion & Process Upset

Wellhead Fugitives

2015 Report

2016 Report

Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks

Introduction Perception Science Practices Technology 6

Statoil’s Approach

to Methane Emissions

Regulation

Operational Practices

Science

Technology

7

Science

Statoil is co-sponsoring a landmark research study on

‘Top-down and Bottom-up Emissions Reconciliation’

Project PI Team

Colorado School of Mines

Colorado State University

National Renewable Energy Laboratory (NREL)

National Oceanic & Atmospheric Administration (NOAA)

Introduction Perception Science Practices Technology 8

Operational Practices

Introduction Perception Science Practices Technology 9

Routine LDAR Routine Leak Detection and Repair Using Optical Gas Imaging Cameras

Separation and RVP

North Dakota Oil and Gas Research Council funded project in collaboration with UND Energy and Environmental Research Center on separation and RVP

Introduction Perception Science Practices Technology 10

Operational Practices

Methane Sensors

GE Fugitive Gas

Emissions Sensors

EDF Methane Detectors

Challenge

NASA JPL Autonomous

Monitoring System

Real Time Monitoring Technologies

Introduction Perception Science Practices Technology 12

Innovation and Technology Development

Introduction Perception Science Practices Technology 13

Methane Sensors Applicability

Separator/Process Equipment

Tank Battery

Wellhead

Flare

Open Path Sensor

Point Sensor with multiple sample

ports Autonomous Drone-mounted Sensors

Introduction Perception Science Practices Technology 14

Methane Sensors Applicability

Tank Battery

Wellhead

Separator/Process Equipment

Flare

Open Path Sensor

Point Sensor with multiple sample

ports

Autonomous Drone-mounted Sensors

Methane Emissions

Bounds X ppm

Y ppm

Q1: How do we set up methane emissions bounds based on the

process footprint and production?

Q2: What triggers an alarm and when?

Innovation and Technology Development

Introduction Perception Science Practices Technology 15

Summary  Supporting sound science is important to resolve emissions uncertainties

 Voluntary initiatives are critical and effective

  Innovation, technology and collaboration will play a key role in understanding, managing and mitigating fugitive emissions

 Methane sensors will be a step change in how the O&G industry manage fugitive emissions in the future

Perception Science Practices Technology Summary 18

Perception Operations

Technology

Operational Practices

Science

Regulations

Acceptable Methane Emissions

Perception Science Practices Technology Summary 19

Perception Operations

Technology

Operational Practices

Acceptable Methane Emissions

Regulations

Science

Perception Science Practices Technology Summary 20

This presentation, including the contents and arrangement of the contents of each individual page or the collection of the pages, are owned by Statoil. Copyright to all material including, but not limited to, written material, photographs, drawings, images, tables and data remains the property of Statoil. All rights reserved. Any other kind of use, reproduction, translation, adaption, arrangement, any other alteration, distribution or storage of this presentation, in whole or in part, without the prior written permission of Statoil is prohibited. The information contained in this presentation may not be accurate, up to date or applicable to the circumstances of any particular case, despite our efforts. Statoil cannot accept any liability for any inaccuracies or omissions.

Desikan Sundararajan, PhD Team Lead - O&M, Shale Oil and Gas R&T DESS@statoil.com Tel: +1 832 367 8710 www.statoil.com

Reducing Methane Emissions E&P Perspective