Presentation of Statoil ASA

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Presentation of Statoil ASA UK Norway Share fair 2006 Aberdeen, Scotland, 20th April 2006

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Presentation of Statoil ASA. UK Norway Share fair 2006 Aberdeen, Scotland, 20th April 2006. Statoil in brief. Statoil is an integrated oil and gas company with activities in 33 countries (exploration and production in 15 of these) - PowerPoint PPT Presentation

Transcript of Presentation of Statoil ASA

Page 1: Presentation of Statoil ASA

Presentation of Statoil ASA

UK Norway Share fair 2006

Aberdeen, Scotland, 20th April 2006

Page 2: Presentation of Statoil ASA

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Statoil in brief

• Statoil is an integrated oil and gas company with activities in 33 countries

(exploration and production in 15 of these)

• At 31 December 2005 Statoil had 25,644 employees, and 49 percent work

outside Norway

• Statoil operates 24 oil and gas fields on the Norwegian continental shelf and

accounts for 60 percent of all Norwegian petroleum production. As operator for

23 seabed facilities, Statoil is a leader in sub sea production

• International production is growing strongly

• We are one of the world’s largest sellers of crude oil and a substantial supplier

of natural gas to the European market

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Statoil – highlights in 2005

•Statoil’s total revenues came to NOK 393 billion

•Net income was 30,7 billion – the best ever in Statoil’s history

•Extensive acquisitions of fields and exploration licences in the Gulf of

Mexico, with first field development initiated

• New vigour on the Norwegian continental shelf

– Technical innovation

– 12 new developments

– 9 discoveries

– 16 new licences awarded

•Record-high reserve replacement ratio

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Corporate executive committee

Nina Udnes Tronstad

Health, safety and the environment

Helge LundPresident and CEO

Margareth ØvrumTechnology &

Projects

Terje OvervikExploration & Production

Norway

Peter Mellbye International Exploration

& Production

Rune BjørnsonNatural Gas

Jon Arnt JacobsenManufacturing &

Marketing

Eldar SætreChief financial officer

Jens R JenssenHuman resources

Reidar GjærumCorporate

communication

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Harstad

Stjørdal

Bergen

StavangerCore areas

OfficesFields operated by Statoil

Core areas on the NCS

Halten/NordlandGrowth area

TampenMatured area

Troll/SleipnerGas machine

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Core area: Troll/Sleipner•“Main engines” in the

Norwegian gas machine

•Provide 63 per cent of

Statoil’s gas production

•Contain 52 per cent of

Statoil’s gas reserves

The Sleipner A integrated production, drilling and quarters platform is linked by a bridge to the Sleipner T gas treatment installation

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Core areas:

Tampen – Statfjord, Gullfaks, Snorre, Visund, Kvitebjørn

Challenges:

• Improve oil recovery

•Extend producing life

•Coordinate and enhance

efficiency

A new shift arrives on the Statfjord A platform while another goes home.

Embraces the oldest and largest fields

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Core areas:

Halten/Nordland – Heidrun, Åsgard, Norne, Kristin

New solutions:

•Production ships

•Floating platforms

•Extensive use of subsea

installations

•New developments in deep

water

•A new gas province

Åsgard A is one of the world’s largest production ships. Its capacity is enough to meet all Norway’s oil needs.

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Snøhvit

• Statoil will become a

player in the market

for liquefied

natural gas (LNG)

• An environmental

project without

harmful discharges

• No surface installations

on the field

• Carbon dioxide storage

beneath the seabedThe LNG plant on Melkøya, a few kilometres from Hammerfest.

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Gas transport and terminals

•Export pipelines to Germany,

Belgium, France and the UK

•High regularity and

great flexibility

•Statoil is technical

operator for 6,000km

of pipeline

Nyhamna

Europipe II

Europipe I

Norpipe

Emden

Teesside

ÅTS

Norne

Åsgard

Haltenpipe

Heidrun

Franpipe

Zeebrugge

Zeepipe I

St Fergus

Vesterled

Frigg

Statfjord

Kårstø

Kollsnes

Melkøya

Snøhvit

Ormen Lange

Easington

Langeled

Ekofisk

Sleipner

Troll

Dunkerque

Kristin

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Corporate executive committee

Nina Udnes Tronstad

Health, safety and the environment

Helge LundPresident and CEO

Margareth ØvrumTechnology &

Projects

Terje OvervikExploration & Production

Norway

Peter Mellbye International Exploration

& Production

Rune BjørnsonNatural Gas

Jon Arnt JacobsenManufacturing &

Marketing

Eldar SætreChief financial officer

Jens R JenssenHuman resources

Reidar GjærumCorporate

communication

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Procurement & supplier relations

CPO

Drilling & well

Key supplier

Relations

Market analysis

Corporate

Procurement

support services

•HR

•HSE

•Rig strategy

•BPP initiative

Constructions

and

modifications

Steel

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Procurement in Statoil – We strive to

•secure best value for money through optimal utilization of in-house and

supplier resources to provide products and services with the right

quality delivered on-time

•meet HSE standards and objectives in work performed by our suppliers

•engage suppliers who share our values and apply guidelines ensuring a

reputation of high ethical standard, integrity and social responsibility

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Procurement in Statoil – How we work (1)

•Strategic sourcing

– Develop, integrate and implement sourcing strategies, with “One

Statoil” in mind, through a category approach to goods and

services based on aggregated demand management, the global

market situation and robust analysis to minimize execution risk

– Base procurement on competitive bidding, taking into account the

principles of transparency, non-discrimination and equal treatment

of bidders

– Address country specific requirements affecting procurement

together with cultural and ethical issues

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Procurement in Statoil – How we work (2)

• Segregation of duties, Compliance and Control

– Line management is responsible for demand planning, allocation of

technical and operational competence, for budgets and approval of

recommended suppliers

– Procurement entities are responsible for pro-active demand coordination,

planning and execution of procurement on behalf of line management to

commit Statoil towards the supplier in accordance with delegation from the

CPO

– Support cost effective procurement through simple and standardized tools,

systems and work processes securing quality, efficiency, spend

transparency and appropriate automation

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Statoil Group Procurement 1996-2005 Yearly spend (NOK Bn)

35

44,4 41,9

30,726,8

36,9

50,5

62,8 62,8

33,7

1996 1997 1998 1999 2000 2001 2002 2003* 2004 2005Committed Value Invoiced Value

* Invoiced Value 2003 does not include commitments without Purchase Orders

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Statoil Group Procurement 2005

Spend per Product/Service Area

Total Procurement: 62,8 NOK Bn

Unclassified11 %

R&D1 %

Ops., Mod., Maint.12 %

Administrative13 %

Project Development

46 %

Drilling&Well17 %

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-Business idea-Exploration

Project planning Project executionFeasibility Concept Detail engineeringPre-engineering Construction Completion

IPR 1 IPR 2 IPR 3 0PR

DG 0Feasi-bility

AP 1 AP 2

Operation

The project development process

DG 1(BoK)

DG 2(BoV)

DG 3(BoG)

DG 4(BoD)

-Business idea-Exploration

Project planning Project executionFeasibility Concept Detail engineeringPre-engineering Construction Completion

IPR 1 IPR 2 IPR 3 0PR

DG 0Feasi-bility

AP 1 AP 2

Operation

The project development process

DG 1(BoK)

DG 2(BoV)

DG 3(BoG)

DG 4(BoD)

Graf

New Major Pipelines10 %

Modifications /Tie-ins42%

Stand Alone35 %

Onshore New Build

7%

Onshore Modification

10 %

Norway:

•Shift in portfolio to increased focus on Modification/tie-in and revamp

•Still large Projects in the funnel

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19Concept Engineering (DG2)SOL Projects Sanction Field Location Project Type

Mongstad PQP Fase 2 Dec 2006 Mongstad Mod.

SFC WI to Vigdis / Snorre Jun 2006 Statfjord, Vigdis Mod., Pipeline

Alve Oct 2006 Alve, Norne Mod., Subsea

GJØA w/ Camilla Belinda Nov 2006 Gjøa, Gullfaks Semi, Subsea, Well

Snorre / Vigdis IOR Dec 2006 Vigdis Mod., Module

Dagny Dec 2006 Troll, Sleipner Mod., Subsea, Well

Alpha Sør Dec 2006 Troll, Sleipner Subsea, Tie-in, Well

Snorre B IOR Topside Dec 2006 Vigdis Mod. , Module

Kårstø Modifications Apr 2007 Kårstø Refinery Mod.

Etan Dornum Aug 2007 Dornum Etan/CO2 Plant

Gudrun Jan 2008 Gudrun, Sigrun, Sleipner Stand Alone

Troll Future Development May 2008 Troll, SleipnerMod. Troll A, Kolsnes

Extension, New Pipeline

Heidrun Gas Injection Jul 2008 Heidrun Mod. , Module

Valemon Oct 2008 Valemon, Kvitebjørn Mod., Subsea, Well

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Gjøa Field Development

Gjøa licence partners:

• Statoil

(Development operator): 20 %

• Gaz de France Norway

(Operations operator): 30 %

• Petoro: 30 %

• Shell: 12 %

• RWE Dea: 8 %

Gjøa

Kvitebjørn

Camilla&Belinda

ValemonHuldra

Hild TrollOseberg

TampenGjøa

Kvitebjørn

Camilla&Belinda

ValemonHuldra

Hild Troll

Langeled

Tampen

Oseberg

ÅTSGjøa recoverable reserves:

• Gas 39 GSm3

• Oil/condensate 10 MSm3

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Gjøa and CBB Field Development Concept

GAS OIL

22 – 28”” 130 km PIPELINE

GJØA SEMI

RICH GAS/STAB. OIL EXPORT

Oil16” OD, 60 km PIPELINE

Gas

GJØA

NORTH

GJØA

SOUTH

Gas 10”

WELLS

Oil 10”Lift gas 6”

Umbilical

Gas 12”Oil 12”Lift gas 6”

Umbilical

UmbilicalGas 14”

CAMILLA

BELINDA

FRAM B

EL. POWER FROM MONGSTAD, 100 km

50 km

7 km

4 km

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Gjøa subsea layout Gas 10” ID for E and D

12” ID for B

CRA steel

Oil 10” ID for E

12” ID for B

CRA steel

Gas Lift 6” carbon steel

Umbilical

Oil export

C

B

E

UTM coordinates:

SEMI 6804200/548000Template B & C 6801300/551300Sat D 1 slot 6806200/552700Template E 6803900/555200

D

SEMI

Gas

expo

rt

C&B

Power cable

A

3.4 km

4.4 km

7.2 km

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Infrastructures in the Troll area

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West 25 Concepts

MillerSt.Fergus

Heimdal

SleipnerCATS

Teesside

FUKA

Vesterled

Troll B

Zeepipe 2A

• Troll B to Vesterled sub-sea

– Gassled Area D reinforcement by ZP IIA –

Miller

• Troll B to HRP and split between FUKA

and Vesterled

– Gassled Area D reinforcement by ZP IIA –

CATS

• Troll B direct to Miller

• Troll B direct to St Fergus

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East 30 & 40 Concepts

Kollsnes

Miller

St.Fergus

Zeebrugge Den Helder

9. Kollsnes direct to Miller

10. Kollsnes direct to St Fergus

11. Kollsnes direct to Zeebrugge

12. Kollsnes direct to Den Helder

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Troll Future DevelopmentPipeline alternatives from Kollsnes

• Direct to Zeebrugge (1050 km) 42” pipeline with a capacity of 57

MSm³/d

• Direct to Den Helder (870 km) 42” pipeline with a capacity of 60

MSm³/d

• Direct to St.Fergus (500 km) 40 MSm³/d (32”) 65 MSm³/d (38”)

• Via Miller to St.Fergus (285 km) Depending available spare

capacity 28” – 34”

Third line Troll A to Kollsnes (65 km) 36” (landfall section pre-installed)

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Kårstø Developments 2006-2015

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Kårstø, key processing unit oil and gas production from Norwegian Continental Shelf

Brage, Gullfaks, Jotun, Balder,Snorre, Statfjord Sygna, Tordis, Veslefrikk, Vigdis, VisundNew Tampen vol?

Sleipner VestSleipner ØstGungneSigyn

Åsgard rich gas

Sleipner Condensate

Draugen Heidrun Mikkel Norne ÅsgardKristinSkarv 2010

StatpipeRich gas

StatpipeSales gas

Europipe IISales gas

Draupner

Dornum

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Kårstø Master plan

Modernise the Kårstø plant to:

•Improve technical integrity

New business opportunities:

•New fields/volumes

•Increased capacity utilisation

Previous Kårstø developments

Statpipe 85, Sleipner 93/96,

Åsgard 00, Mikkel 03, KEP 05

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Status and Way forward

•Kårstø has a significant project portfolio ahead:– High activity within maintenance and modifications– Significant project portfolio

– Total investments in the next 10 years may be 9 – 10 GNOK

•Maintenance and modification portfolio to be executed within Operation

•Project portfolio to be executed in two phases– Phase 1, Completion by 2010/2011 (5 GNOK)– Phase 2, Completion by 2013-2015

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18

History Future

Statpipe 1985

Troll 1995Åsgard 1999

Snøhvit LNG

Statfjord 1979

Environmental

technology

Ultra

Deepwater

Arctic E&P

New solutions - new watersNew technology has opened for northern activity

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Significant opportunities in frontier areas

•Barents Sea– Four wells, where two are Statoil-

operated: Uranus and Guovca– No commercial discoveries in

Obelix and Guovca•Norwegian Sea; deep water

– Three Statoil-operated wells– Small gas discovery in Tulipan

wildcat•North Sea

– Kogge wildcat in southern North Sea

•Significant yet-to-find potential – 28 Gboe undiscovered on the NCS

Kogge

EdvardaMidnattsol

Tulipan

Obelix Uranus

Guovca

Goliath

Oil

Gas

Total*

* Undiscovered resources (Bn bbl. o.e.) Source: Statoil

11,54,9

2,6

4,0

16,8

9,8

2,8

4,2

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Long term visions for the Barents SeaIndustrial options we are working towards

MurmanskMelkøya

Tromsø

Nyhamna

Åsgard

KårstøKollsnes

Emden

Kirkenes

Short term (2012)

• Snøhvit I & II

• Pechora olje

• NEGP

• Shtokman I

• Area F & G

Medium term (2020)

• Barents West piped gas

• Shtokman II

Long term (2020+)

• Shtokman III

• Pipeline gas to EuropeSnøhvit I&II

Shtokman

Barents West

Area G Area F

Zeebrugge

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Summary

•Still a significant number of possible new projects, but

– cost level is increasing significantly (CAPEX/bbl)

– lack of capacity

•High focus on continued development of the Norwegian shelf

– Increased oil and gas recovery

– Smaller field development and satellites

– More complicated/challenging reservoirs

•A number of projects require modification on existing infrastructure

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Thank [email protected]