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Extreme cold challenges & experience from an industry perspective …

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Outlook

!   TOTAL’s current involment in extreme cold development  Kashagan  Kharyaga  Shotkman  Snøhvit

!   R&D organization

!   Technical challenges

!   Conclusions

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TOTAL Assets

KHARYAGA

1000 km

SHAH DENIZ

KASHAGAN

KHARYAGA

1000 km SNØHVIT

KASHAGAN

!   Co-venturer in the development of huge field in the Caspian Sea area   Kashagan oil field (Kazakhstan)

  North Caspian PSA: TOTAL 16.81%   First Oil: 2012

!   Operator of an oil field in Russia   Kharyaga oil field

  PSA: TOTAL 50% operator   Producing from October 1999

!   Snøhvit operated by Statoil: the first LNG plant to be built in cold weather conditions in Europe

!   Partner in an Operating Co. in Russia   Shtokman gas field

  25% share of a SPC   development and operation of Phase I

SHTOKMAN

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Island D in winter Kashagan

vent

8 à 9 m de haut (soit un immeuble de 3 é tages)

wind

8 to 9 m height é

37 Drilling Islands

240 wells

1.5mln bopd plateau production

Offshore & onshore processing and

Gas compression plants

Operator NCOC Operator

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KHARYAGA !   Located in Timan Pechora, North Polar circle

!   1st onshore PSA signed in 1995 (Objects 2&3)

!   TOTAL operator (50%), Statoil (40%), NOC (10%)

!   Complex carbonate reservoirs

!   Waxy oil, with H2S content

!   Production : 30 000 bopd

Experience on:

!   Permafrost engineering and operation

!   Working Conditions   -53°C absolute minimum temperature   important wind (annual mean 4.2 to 6.1 m/s with a

winter variation from 18 to 24 m/s) Kharyaga in winter (March)

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Snøhvit

Statoil 33.53 %

Petoro 30 %

Total 18.4 %

GdF 12 %

Amerada Hess

3.26 %

RWE 2.8 %

!   Three fields: Snøhvit, Albatross, and Askeladd

!   A 145- kilometer pipeline for gas to Melkoya Island: processing, liquefaction, storage and loading facilities

!   CO2 content: 5.3% Snøhvit, 7.9% Albatross

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The Shtokman field •  Two main sandstone reservoirs: J0 & J1 •  Sweet & lean gas •  3.8 trillion Sm3 of natural gas •  37 million tons of condensate

•  Water depth ~ 340 m •  Rough seabed •  Harsh metocean conditions •  Possible packed ice and icebergs •  Min. air temperature: -15°C / -38°C •  Min. seabed temperature: -1.8°C

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Shtokman – Project description

!   Gas & condensate field in the Russian Barents sea

  Discovered in 1988   IGIP: 3800 GSM3

  Water depth: 340m,   Offshore at 550km from Kola peninsula   Very good petrophysical properties

!   Phased field development   Phase 1: 7,5 MT/y LNG & 11 GSM3/y pipe gas   Onshore plant at Teriberka

!   A first class Russian project:   Tie-in to the North Stream   To satisfy LNG long term consumption growth

!   SDag: Gazprom 51 % - TOTAL 25 % - Statoil 24 %

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Icebergs Management at Shtokman location

!   Icebergs in open water and embedded in Sea Ice, can come from Franz Joseph Land and Novaya Zemlya glaciers

!   220 icebergs observed around Shtokman area over 48 years

!   In 2003, more than 15 icebergs have been observed close to Shtokman, 2 of them weighting more than 3 millions tons.

!   Collision with FPU ones in 110 years, if not managed

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Extreme Cold R&D Organization

Advanced technology R&D

 Health & Safety for Arctic

  LNG (executed by ED/LNG)

  Arctic Engineering & Technologies

 Feedbacks & Scouting

  Environment

Projects

Yamal

Shtokman

Kharyaga

Others…

Technical Departments

Total R&D centers

Institutes •  JIP •  PhD

•  Collaborations …

Acquisition/ consolidation of an internal expertise

Snøhvit

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!   Essential to preserve the environment in a sensitive ecosystem

!   Extreme weather conditions:   Sea Ice and Icebergs   Icing   Polar night   Low temperatures   Permafrost area

!   Winterization (snow, icing, wind…)   Construction, Installation & process integrity   Personnel protection

!   Remoteness - Transportation of personnel and equipment

!   Emergency Evacuation and Rescue   Different environments: wave and ice   Offshore: floating platform too far from shore for evacuation by

helicopter,   Onshore: ice road vs helicopter but seasonal restrictions…

Extreme cold Challenges

Polar low, Barents Sea, 27 Feb. 87

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Outside work conditions & limitations !   Windchill affects temperature conditions,

Lowest T

°C

Wind

m/s

Kashagan -40 24

Khariaga -53 Mean 5.2

Max 38

Shtokman -40 28

Yamal -57 Max 32

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TOTAL approach to technical challenges

!   Health & Safety  Ongoing innovative R&D program on winterization of workplace modules,  Development of knowledges to protect/facilitate work  Design of logistics rules adapted to each area of concern  EER issue

!   Engineering & technology   Development of new materials and/or technologies from other industries  Adequate monitoring technologies  Gap analysis of existing technology vs needs

!   Environment:  Adaptation of techniques for a Zero harmful discharge policy  Prevention, early detection & remediation of oil spill (under ice, thaw/frost…)

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Conclusions

!   Extreme cold areas present a huge potential with reserves

!   Protected areas with sensitive ecosystems

!   No universal techniques & solutions but adaptation to local context

!   Need of expertise acquisition and strong partnership

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Please don’t forget … ATC 2011

!   http://www.arctictechnologyconference.org/

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!   BACK UP

Yamal project

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1 Cold wear Sintef & NTNU Contractor

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2 JIP EER in Ice Covered Waters

Contractor Petroleum Research Atlantic Canada

Partners : Statoil / Total / Chevron/ Exxonmobil/ Shell/ COP …

Develop an approved, commercially-available EER system (or systems) capable of operating under anticipated operating scenarios

WP 1 – Define design drivers WP 2 - Design WP 3 – Prototype & evaluation WP 4 – Manufacture a commercial product

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3 Cold Climate technology project ColdTech

Norut Contractor

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4 Sea ice modelling in the Marginal Ice Zone (MIZ)

Budget: 3.011 MNOK (no partner)

Duration: 2007-2010

!   Objectives: Development of an improved ice-ocean model in the marginal ice zone for better forecasting ice drift and hot spot of productivity

!   Deliverables: An improved model for sea ice drift in the marginal zone area

!   Validation areas: Fram Strait and Barents Sea.

!   Application areas: Part of the emergency operations plan for oil spill (forecast of oil in ice drift, forecast of most sensitive exposed ecosystem).

Contractor

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5 Thermal-mechanical effects on 1st year ice (PhD) 1. Theorical studies

2. Lab works

3. Site investigations

University of Svalbard Contractor

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6 JIP Arctic material

Partners : StatoilHydro / Total / ENI / Scana / Bredero Shaw / Treeleborg / JFE / Nippon steel / Aker solutions / Vetcogray and DNV joining by the end of 2009

Duration : 5 years starting in 2008 extended to 2018

Contractor

WP 1 - Steel fabrication and mechanical characterization WP 2 - Strength and toughness criteria for safe materials utilization WP 3 - Polymer coatings WP 4 - New concepts and materials solutions

SINTEF

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7 JIP Oil in Ice Oil Spill Contingency for Arctic and Ice-infested waters

Budget: TEPN: 826 k€ (Total: 4958 k€) Duration:2006-2009

!   Objectives: Develop tools and technologies for environmental beneficial oil spill response strategies for ice-covered waters

!   Validation area: Field tests Barents Sea in 2008 and 2009

!   Application areas: All areas with ice infested waters

Partners

Contractor