Petroleum technology for a world-wide market · Petroleum technology for a world-wide market. Activities SINTEF Petroleum Research is a research and development company located in

SINTEF Petroleum Research • annual report 2001 1

Just as for other institutes in the petroleumsector, there was less work on us on theNorwegian continental shelf in the 90s. Wetherefore decided to develop our internationalmarkets - and so far, we are fairly well pleasedwith the results of our overseas efforts.

Towards the end of the 90s, we began systemat-ic marketing of our services in five geographicalregions, and obtained positive responses in fourof them. Today, we have contracts in the Gulf ofMexico, South America and West Africa. Butmost important of all is the foothold we havewon in Iran - one of the most oil-rich countriesin the world.

In winter 2001, the Iranian state oil companyNIOC asked SINTEF Petroleum Research tocarry out a study of how the huge Azadegan oil-field should be developed. This onshore fieldcontains the biggest petroleum find anywhere inthe world during the past 20 years.

In February 2002 we won another major con-tract with NIOC for a similar study of seven oilfields that are already in operation. In this casewe have been asked to suggest ways ofincreasing recovery rates. This project has atotal budget of more than NOK 50 million, half ofwhich will come to us.

The Iran projects utilise modelling andsimulation software, with which we have longexperience from projects on the Norwegiancontinental shelf. At the same time, we have taken the opportunity to gain and make use of

specialised knowledge of the geology of thisregion, for while most of Norway’s oil is found insandstone reservoirs, Iran’s reservoirs lie infractured carbonate formations.

The other petroleum reservoirs in this part of theworld are also found in such formations. We aretherefore already considering the possibility ofextending our overseas efforts to include othermiddle eastern countries. In such a perspective,we regard the knowhow we are gaining fromthe Iran projects as an important addition to ourexpertise.

David Lysne

President,SINTEF Petroleum Research

Petroleum technology for a world-wide market

Activities

SINTEF Petroleum Research is a research anddevelopment company located in Trondheim.

The Board wishes to thank the staff of SINTEFPetroleum Research for their excellent efforts incarrying out their work in 2001.

Petroleum prices remained high throughout2001, producing a somewhat improved situationin the market for R & D services. This has had apositive effect on the second half of 2001.

The series of mergers in the petroleum industrycontinued in 2001, with the result that 14 of theInstitute’s most important clients in 1998 havenow been reduced to 6. Each of these mergershas meant the loss of an R & D budget, whichhas led to a significant change in the structureof the Institute’s market during the past fouryears.

The Institute needs to attract a steadily largerproportion of its turnover from abroad. Our mar-keting efforts in international growth areas haveproduced yet more contacts in the Gulf ofMexico, West Africa, South America and Iran.Looking back, we can affirm that the interna-tional strategy that we set out in 1999 has beenbeen extremely successful. The Institute hasmoved into the global arena in research-basedservices, where it has done very well. Given thesize and reputation of the SINTEF Group, andnot least SINTEF Petroleum Research’s ownhighly recognised knowhow and technology, we have demonstrated the right of the Instituteto exist in the global market.

Organisation

At the end of 2001, SINTEF Petroleum Researchwas organised in terms of four scientific depart-

ments in addition to its management supportfunctions, which consist of the institute staff and the computing department.

Personnel Situation

The Institute performed 71 man-years of workin 2001. At the end of the year SINTEF PetroleumResearch employed 73 staff, 53 of whom wereresearch scientists, of whom 27 hold doctorates(51%). A further 4 members of staff are currentlyworking on doctorates. A total of 12 employeesleft SINTEF Petroleum Research in 2001, while 7new members of staff joined the Institute.

In 2001, SINTEF Petroleum Research had twoconsultancy agreements with members ofNTNU’s academic staff.

Two members of staff of SINTEF PetroleumResearch have spent periods abroad in thecourse of 2001. One member of staff wasappointed to a chair in the University ofThessaloniki and now has a 40% position withus, while another was on an exchange visit withShell in the Netherlands.

Annual interviews with each individual memberof staff are an important element of SINTEFPetroleum Research’s organisation develop-ment.

Publications

Fifty-six presentations were made at nationaland international conferences, and SINTEFPetroleum Research scientists were among theauthors of 25 articles published in peer-reviewed journals. This is equivalent to 0.5publications per Research Scientist man-year(0.3 in 2000).

2 SINTEF Petroleum Research • annual report 2001

Report from the Board of Directors, 2001

Work Environment

The Work Environment Committee is a forum forclose cooperation with our staff, at whichinformation is exchanged and important workenvironment topics are taken up. The Committeeheld four meetings in 2001.

Virtually all suggested HSE measures wereimplemented in 2001. The following measuresare particularly worth mentioning: risk assess-ments of laboratories, the radiation course, HSEdatasheet course, fire and evacuation course,ergonomic improvements in offices and depart-ment-level measures to improve work enjoy-ment, cooperation and innovation.

Sick-leave in 2001 was 3.5%, as compared with 6.2% the previous year. The sick-leave picture isdominated by cases of long-term illness.One accident involving personal injury occurredduring the year, although the person concerneddid not require sick-leave. The incident hasbeen followed up on and the necessarymeasures taken.

External Environment

The company’s HSE system satisfies therequirements of the internal control regulations.This helps to ensure, for example, that our labo-ratory activities and handling of chemicals donot lead to contamination of the work orexternal environments. This means that allchemical substances are dealt with and allwaste is disposed of in accordance with currentregulations. In 2001 there were no emissions of substances that required emission permits.No specific actions have been demanded by the Labour Inspectorate.

Annual Accounts

SINTEF Petroleum Research’s annual operatingprofit for 2001 was MNOK 1.3 (MNOK -1.2 in2000). Net financial income was MNOK 4.6(MNOK 4.0); this produced an annual profit ofMNOK 6.0 (MNOK 2.8).

Investments and acquisitions of scientific equip-ment in 2001 came to MNOK 4.3 and MNOK 1.7respectively, i.e. a total of MNOK 6.0.

The cash flow analysis shows a significantimprovement in our net cash flow from opera-tions, from MNOK -2.7 in 2000 to MNOK 21.7 in2001. The Institute’s cash holdings rose fromMNOK 61.3 million in 2000 to MNOK 78.8 in 2001.

The company has been advised by letter byTrondheim Taxation Department that it is consid-ering making SINTEF Petroleum Research liableto tax from 2001. The Board questions the legiti-macy of full tax liability, and the possible effectsof taxation have not been taken into account inthe annual accounts for 2001.

Apart from the tax issue mentioned above, theBoard is not aware of any circumstances thathave arisen since the accounts were balancedthat are of significance for evaluating theeconomic position of the Institute.

Continued Operation

The Company’s equity has risen to MNOK 64.1,which is 60% of its total capital, of which in turnthe Company’s original share capital is MNOK 9.This is a good basis for continued operation ofthe Company, which is the assumption on whichthe accounts have been drawn up.



Trondheim, March 13, 2002

Nils Spidsøe Roar Arntzen Karl A. BerteussenChairman of the Board

Hans Borge Jon Kleppe Jofrid Klokkehaug

Erik Lindeberg Ole Lindefjeld Fridtjof Nyhavn

Sverre Aam David Lysne

President, SINTEF Petroleum Research

Future Developments

The international petroleum market is still in theprocess of changing dramatically, and theInstitute is rapidly adapting to changes ingeneral conditions. Virtually all of capacity ofthe Institute for 2002 has been taken up. Ourorder reserve at the beginning of 2002 was 94%of our budgetted net income, as against 81% in2001 and 73% in 2000. This is an indication of the

positive state of development of the Institute,and the Board believes that it faces a brightfuture.

Disposition of Profits

The profit of MNOK 5.983 for 2001 will be trans-ferred in toto to the company’s equity capital.


First row from left: Erik G. B. Lindeberg, Nils Spidsøe, Jofrid KlokkehaugSecond row from left: Hans Borge, Sverre Aam, Roar Arntzen, Jon Kleppe, Karl A. Berteussen,

Ole Lindefjeld and Fridtjof Nyhavn. Erik-Sverre Jenssen was absent when the photo was taken.

SINTEF Petroleum Research Board of Directors


Basin Modelling

A source rock capable of generating petroleumis an essential prerequisite for finding accumu-lations of oil and gas deep in the earth.Nevertheless, the extent, type and quality ofsource rocks tend to be some of the least well-understood variables in the field of basinmodelling. In order to help tackle this lack ofknowledge, SINTEF Petroleum Research hasdeveloped the "OF-Mod" software package. Thisnumerical modelling tool is now being used in anumber of exploration studies for oil companies,such as in the Vøring area, at the HaltenTerrace and off the coast of South America.Companies participating in these studies includeAgip, BP, Conoco and TotalFinaElf.

We are currently planning to develop OF-Mod to do 3D modelling, and several oil companieshave expressed their interest in such a tool. Theother exploration tools that we have developedalready operate in 3D (e.g. the secondary migra-tion simulator, SEMI). A 3D version of OF-Modwould therefore fit well into our range of explor-ation tools. Since 3D OF-Mod will enable us to

produce better models of how oil and gas areformed, it will make an important contribution toour ability to predict which phases (oil, water orgas) will be found in a well before it is drilled.Better phase prediction is also the subject of aStrategic Institute Programme (SIP) in basinmodelling. This programme will make use ofhigh-resolution "finger-printing" of selectedhydrocarbon components to improve phaseprediction. An important step forward this yearhas been the development of a method ofmodelling petroleum displacement from sourcerocks (primary migration) based on polymersolution theory. The method can explain thefractionation of petroleum components such asaromatics, polars, and different types ofaliphatics, that has been observed in theprocess of primary migration.

The secondary migration simulator SEMI waslicensed to five oil companies last year, and ithas been utilised nationally and internationallyby our clients in a number of basin modellingstudies. We have used the model ourselves in amajor study in the northern part of theNorwegian Sea (65 - 68° N, 3 - 10° E). Aker Geo

Activities - Departmental Annual Reports

The figure shows an example for source rock distribution from a theoretical modelling study in theVøring Basin, mid Norwegian Continental Shelf. The colours in the cross-section represent the sourcerock potential under immature conditions.


led this project, and the study has been sold toseveral oil companies.

The SEMI module for reconstructing palaeo-water depths (SEMI Palaeowater) has been further developed with support from Agip andConoco. It is now possible to correct for isostasy and flexure, as well as to calibrate withpalaeontological interpretations of waterdepths. The present method makes it possible toreconstruct a palaeobathymetric map for awhole basin in only a few minutes.

For Norsk Hydro we have carried out a study ofthe origin of the formation water in the OrmenLange field. Several different possible mecha-nisms underlying the origin of this abnormallysaline formation water have been considered,and the likelihood of each of them has beendiscussed on the basis of the geological devel-opment of this field.

As part of the "SMIFF2" research project, whichis being carried out in collaboration with IFE andNGI, we have developed a prototype of a simu-lator that quantifies the minimum horizontal ten-sion in formation ceiling rocks. This simulator isbeing used to calculate the time and location ofpossible hydraulic leakages in high-pressureprospects.

The department has been working for a longtime on pore pressure on basin scale, andamong other results, has developed the PRES-SIM pressure simulator. In collaboration withthe Department of Well and Subsea Technology,we are currently further developing our meth-ods to enable us to estimate pressure condi-tions along a well-path before drilling takesplace. Calculations of this sort are becomingmore important as exploration wells are beingdrilled at ever greater depths. Although this isimportant on the Norwegian continental shelf,

overpressure is an even greater problem in theGulf of Mexico, particularly where drilling isbeing carried out through salt domes. This hasproduced a good response to our technologyamong operators and service companies in theUSA.

Seismics and Formation Physics

The considerable computing power available tothe Institute enables us to perform computing-intensive seismic processing applications. Theuse of 3D AVO inversion to estimate rockparameters on the basis of seismic data hascontinued in 2001, for the most part in thecourse of two major interdisciplinary projects.

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Strength and stiffness log from scratchmeasurements, for a real layered core material.


In SEISBAS, a three-year project that came toan end last year, seismic inversion and geologi-cal interpretations were deployed as input forimproved basin modelling studies aroundSleipner. In addition to internal funding, theproject has been supported by two licenses andthe EU’s Thermie Programme. This project wascarried out in collaboration with Ødegaard A/S.Seismic inversion was also utilised in the EU’sSACS project, which dealt with monitoring CO2injection on Sleipner. This project is continuingin 2002.

The department is at the leading edge ofresearch in the processing and analysis ofseabed seismics. The IPOBS project has devel-oped software for full elastic imaging of multicomponent (4C) seismics in media withanisotropy and attenuation. At the moment,there is some uncertainty within the industryregarding whether the high costs of gatheringocean bottom seismic data will pay off in termsof improved seismic imaging and thus improvedrevenues from fields. One of the problemsseems to be that the measurement technologyitself is more complex than in traditional seis-mics, and quality control of the data may be ofdecisive importance in avoiding misinterpreta-tion. In the project "Vector Fidelity", which isreceiving support from five major oil companies,we will develop new methods and standards forsuch quality control of ocean bottom seismicmeasurements, in addition to designing and cal-ibrating correction routines to correct theseproblems. This will be done in collaboration withvarious members of the service industry.

A new area of major effort for SINTEFPetroleum Research is "seismics during drilling",as a tool for improving safety during deepwaterdrilling. This is essential for the exploitation ofthe important deepwater finds that have beenmade during the past few years, for example in

the Gulf of Mexico. The department has devel-oped concepts for advanced imaging tech-niques based on Vertical Seismic Profiling(VSP), and some of these have been tested inthe course of a project for Statoil. One of theaims is to allow the prediction of potential zonesof overpressure that the drill-bit risks encoun-tering, something that is very difficult to do onthe basis of seismic data alone. By combiningseismic parameter estimation and pressuremodelling (see the Basin ModellingDepartment’sPRESSIM) the reliability of the method can beconsiderably improved. As part of this we havealso started a three-year project entitled "WellPlanning from Seismic Data: Establishing theGeomechanical Link", which has the objective ofdeveloping tools for determining recommendeddrilling fluid density on the basis of seismic data.

INFAMI is a new three-year EU project whichwe are carrying out in collaboration with NorskHydro, BG, University College, Dublin and theUniversity of Aarhus. It centres on the develop-ment of software that takes mud lubrication infaults during hydrocarbon migration simulations.The project is based on SEMI, and it includesthe development, implementation and validationof the methodology using data from several oilfields. This project is being performed in col-laboration with the Department of BasinModelling.

In the mid-90s the petroleum industry began torealise that hydrocarbon production can beincreased if the criterion of zero sand produc-tion can be modified and a certain amount ofsand production can be accepted. The aims ofresearch on sand production have thus movedfrom the determination of initial sand productionin the 80s to the prediction of total sand produc-tion and sand-rate in the 90s. The researchproject entitled "Volumetric Sand Production I",which started in 1998 and came to an end in


2001, and was supported by Conoco, NorskHydro, Statoil and Shell, developed first-genera-tion sand prediction models capable of estimat-ing the expected mass and rate of sand produc-tion throughout the lifetime of a well undergiven production scenarios. "Volumetric SandProduction II" started in 2001, with Norsk Hydro,Conoco, Statoil, Agip, Shell and Petrobras asparticipants. This project focuses on developingthe prediction models in terms of understandingand proper modelling of the coupling betweenfailure and sand removal in a sandstone forma-tion. Studies already carried out have shownthat the presence of water in produced fluidssignificantly increases the amount of sand pro-duced, and we are currently trying to quantifyand model this effect. Sand production in highflow-rate gas reservoirs is also being studied,as such conditions can lead to a different typeof behaviour and may require a separate gas-reservoir option in the prediction models.

Well and Subsea Technology

The large-scale facility at Tiller was officiallyreopened in June 2001 by Conoco, the first newuser of the facility for studies of wellstreamtransport from deepwater fields. In collaborationwith Conoco, SINTEF has been workingintensively for the past year to implement acontinuation of the results of the ACMARStrategic Institute Programme in a major newlong-term programme in multiphase modellingand simulation. In November, we succeeded inestablishing a partnership involving Conoco,

TotalFinaElf and SINTEF for the development ofa next-generation multiphase simulator - LEDA. Our aim is to develop a commercial tool that willbe capable of handling multiphase flows incomplex geometries, with complex fluids. Thistool will function as a virtual laboratory in whichit will be possible to study the behaviour offluids under dynamic flow conditions in wells,pipelines and process plants.

The LEDA project has a time horizon of nineyears. The first round will consist of a three-year agreement with a budget of MNOK 51, ofwhich SINTEF will invest MNOK 6.

The demand for our services in the gas hydratefield has been high, particularly in the secondhalf of 2001. A hydrate course has been supp-lied to Elf Exploration Angola’s operators on theGirassol field and to FMC Kongsberg Subsea, fordevelopers of subsea production systems. Wehave also made several deliveries in connectionwith BP’s deepwater fields in the Gulf ofMexico, and have carried out studies of plug-ging tendencies on Hydro’s Gjøa field, in addi-tion to the start of ice and hydrate studies forOrmen Lange. In connection with contracts for

The large scale SINTEF Multiphase Flow Loop,located at Tiller just outside Trondheim, will be

upgraded in several areas in order to deliver newand unique data to the LEDA project (se main text).

The flow facility will be fully occupied to midsummer 2004.


BP we have developed a 1000-bar realconditions wheel simulator. This tool ought alsoto be of interest to upcoming high-temperatureand high-pressure (HPHT) field developments onHaltenbanken in the Norwegian Sea.

On behalf of Statoil we have built a new riser onthe three-phase facility, and this has beeninstrumented to test out control algorithms fordamping or removing large fluid plugs in seabedtransport pipelines (plug control). The results ofthese studies have verified the methods imple-mented by Statoil on the company’s pipelinefrom Heidrun Nord to Heidrun TLP. Similarmeasures are being planned for other fields on the Norwegian shelf.

SINTEF’s work in Iran has opened up theprospect of new and interesting challenges indrilling and well technology. A contract withNIOC to draw up a plan for the development ofIran’s Azadegan field has demonstrated that weare fully competent to perform concept designand pre-engineering studies on drilling and wellfacilities for field developments.

The need for safer and more rapid drilling andimproved well productivity places greatdemands on planning processes and newtechnology. Risks associated with abnormalpressure regimes, hard formations with low

penetration rates and mechanical problems,logistical challenges and heavy oil problems alldemand efficient operational solutions. In Iranwe can see great potential for improvement in these areas. More stringent environmentalrequirements, which are particularly evident inthe Azadegan project, where field developmentis taking place in wetlands and other eco-sensitive areas, offer many exciting challenges.

The department has consciously gone in for thedevelopment of good relationships with Iranian professionals, and a good basis has been devel-oped for future deliveries of drilling and welltechnology services. Collaboration has beeninitiated with Statoil with the aim of solvingdrilling and well technology problems in Iran.This field of cooperation also includes theengagement of, and provision of professionaland financial support to, Iranian students inconnection with their M.Sc. and Ph.D. studies at NTNU.

Environmentally safe field development both inNorwegian Waters (Norwegian Sea andBarents Sea) and the mid-East is a growth area, with a need for both innovatory opera-tional solutions and more R & D. Several of theprojects that started in 2001 have indispensableenvironmental requirements as technologydrivers. This gives us room for further interdisci-

An preview of the kind of results the LEDA simulator will deliver. A virtual window has been inserted to show detailes from a hydrocarbon two

phase mixture flowing through a pipe where the wall has been removed. The flow is animated and thefuture petroleum engineer will get a good understanding how the flow propagates in the pipeline.


plinary cooperation, both in order to minimisepotential initial problems and to develop effi-cient measures for dealing with them. Examplesinclude safer drilling, improved pressure predic-tion and better ways of dealing with producedwater with the aid of advanced well and subseaproduction technology.

In the Strategic Institute Programme "IntelligentWells" we are currently developing a new simu-lator concept: "Smart Asset Value Evaluation"(SAVE), a process simulator for oil and gasfields based on the use of remote monitoringand steerable control systems for selective pro-duction and injection in pay zones in wells. Thesimulator is being designed to function as areal-time monitoring and control system for theoptimisation of production from this type offields. At the same time, the simulator will becapable of being used as a planning aid. Ademonstration version of the simulator isexpected to be ready in the second quarter of2002. SAVE is being developed in cooperationwith SINTEF Electronics and Cybernetics, whichhas developed process simulators for theNorne, Heidrun and Åsgard fields.

The department intends to increase its efforts inwell instrumentation, with special emphasis onnew downhole sensors and wireless communi-cation. For this reason, we have built up asensor development laboratory at Tiller. In 2000,we supplied an acoustic communication systemfor Petrotech’s downhole fluid sampler. SINTEFis Petrotech’s preferred partner for its new SILDproject (DEMO 2000), in which the company iscollaborating with Halliburton and Statoil in thedevelopment of a system for downhole well andfluids testing.

In connection with the instrumentation of theHPHT gas condensate wells on the Kristin field,we are cooperating with Poseidon and SiemensTechnology to develop a wireless downhole

reservoir monitoring system for permanentpressure and temperature recordings at depthsof about 5600 m and temperatures close to 170°C.

Multi-component (4C) seabed seismics is amethodology with a large potential for enhanc-ing subsurface characterization, and its becom-ing more widely used. The methodology is par-ticularly interesting for permanent monitoring inso-called instrumented oilfields or e-fields. Acritical factor, often limiting the usefulness oftoday’s 4C seismic is the "vector fidelity" of thedata acquisition system or its ability to renderthe true seismic vector field. Together with theDepartment of Seismics and FormationPhyshics, we have now established a long-termindustry consortium called Vector Fidelity. Fiveoil companies and 3 service companies partici-pate in the consortium. The objectives are toestablish an industry standard for specifyingdata quality as well as developing correctionmethods for data lacking vector fidelity and aswell as providing an experience database toimprove the success rate of applying multi-component seabed seismics.

Reservoir Technology

In 2001, the department experienced a rise inproject commissions in comparison with theyear before. One important reason for this isthat the goal-oriented efforts of the Institute andthe department to secure contracts in Iran havebrought in a number of projects, some of themlarge. However, we have also experienced anupturn in more traditional R & D work.

Following the first Iran project in autumn 2000,the Institute was given the task of drawing up amaster development plan for the Azadegan field. This field is one of the biggest petroleum dis-coveries that has been made during the past tenyears. A master development plan is equivalent


to the simplified plan for recovery and produc-tion that is drawn up for all Norwegian fields.The department was responsible for reservoirmodelling and simulation, calculating surfaceequipment requirements and drawing up simplefinancial calculations. A wide range of activitiesin this project were also carried out by otherdepartments, enabling the Institute to hand overa complete product in cooperation with our jointventure partner RIPI (the research institute ofthe Iranian National Oil Company NIOC). RIPIstaff were located at SINTEF PetroleumResearch for a large part of the project. Sincecompleting the project we have assisted NIOCon several occasions on a project basis dealingwith questions relating to development of thisfield.

In collaboration with NIOC and Norwegian oilcompanies, we have been working for sometime on setting up a research programme in Iranthat will focus on improved petroleum recovery.Following the signing of a cooperative agree-ment by NIOC, Statoil and SINTEF PetroleumResearch, the department has participated inimplementing the aims of this agreement.

Participation in the SACS project, in which CO2injection into the Utsira formation is being fol-lowed up, was another important activity for thedepartment in 2001. Problems associated withCO2 deposition were also dealt with in otherprojects, both in connection with the Utsirainjection programme, the use of CO2 for impro-ved oil recovery and elsewhere. In the lattercategory we might mention our participation inthe international "Carbon Capturing Project"(CCP), in which the department will study thepossibility of CO2 leaking from deposits viaabandoned wells. The great interest shown inthe general problem of CO2 by the authoritiesand industry may lead to a further growth indemand for the expertise of the department inthis wide-ranging field.

The department is taking part in the StrategicInstitute Programme "Intelligent Wells", in whichwe have been working primarily on developingsimplified reservoir models for use in automaticcontrol systems for intelligent wells. Anotherproject has developed a method for making his-tory matching of various reservoir models moreefficient, in order to enable production prog-noses to be drawn up with a greater degree ofconfidence.

The department operates a high-pressure andtemperature laboratory for fluid analysis andadvanced core analysis, using equipment thatalso allows various other types of special studyto be carried out. Good cooperation with Statoilhas led to a number of projects that focus onprofile control and various other aspects relatedto near-well phenomena. Other activities in thelaboratory included measurement of relativepermeability, studies of precipitation and trans-portation of asphaltenes in porous materials andmeasurements of interfacial tensions. Thedepartment is also involved in a number ofmultidisciplinary projects within SINTEF, whichmake use of our laboratory resources and gen-eral expertise.

Simulated convective plumes of CO2 richbrine propagating from a gas/brine contact.


2001 2000Operating income

External projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,380 50,003Project funding from Research Council of Norway . . . . . . . . . . . . 17,601 18,796Basic funding from Research Council of Norway . . . . . . . . . . . . . 4,000 4,500Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 695Gross project income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,125 73,994- Direct project expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -19,623 -16,357Net operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,502 57,637

Operating expenses

Wages and social expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,367 37,844Ordinary depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,201 4,489Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,597 16,529Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,166 58,863

Operating income / loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,336 -1,226

Financial income and expenses

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,673 4,500- Financial expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -26 -462Net financial income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,647 4,038

Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,983 2,813

Dispositions

Transferred to the equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,983 2,813

Income statement (mNOK)


Service commissions 28%

Research 72%

Contracts 73%• industry and commercial enterprises 43%• international contracts 28%• public sector 2%

Research Council of Norway 27% • strategic programs other SINTEF institutes 7% • strategic programs 15% • basic grants 5%

Commisions

Distribution of gross operating income by client


Researchers 73 %(of whom Dr.ing. 50 %)

Engineers 9,5 %

Administrative staff9,5 % Technical

staff 8%

Programs < 2 years39%

Short terms commissions28%

Programs > 2 years33%

Distribution of gross operatingincome by project duration

Distribution of employees by position


ASSETS 2001 2000

Fixed assetsScientific equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,429 2,571Office equipment, vehicles, inventories . . . . . . . . . . . . . . . . . . . . . 217 15Deposits, companies within the SINTEF Group . . . . . . . . . . . . . . . 50 50Other shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Total fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,696 2,712

Current assetsProject in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,961 1,545Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,352 27,706Acc. receivable, companies within the SINTEF Group . . . . . . . . . 343 1,979Other accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404 253Other shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,081 23,282Cash, bank accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,717 37,972Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,934 92,737

TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,630 95,449

EQUITY AND LIABILITIES

EquityShare capital (900 shares at NOK 10,000) . . . . . . . . . . . . . . . . . . . . 9,000 9,000Other equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,111 49,128Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,111 58,128

LiabilitiesLong-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,163 711

Delivery liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,131 1,349Liabilities, VAT, tax deductions, social security, etc. . . . . . . . . . . . 3,822 3,715Payment in advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,995 22,113Liabilities, companies within the SINTEF Group . . . . . . . . . . . . . . . 5,470 3,673Other short-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,938 5,759Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,356 36,610

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,519 37,321

TOTAL EQUITY AND LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,630 95,449

Balance sheet (mNOK) Balance sheet on 31 December


-6000

-4000

-2000

0

2000

4000

6000

8000

10000

Profit of the yearOperating profit

1997 1998

1999

2001

2000

-10

-8

-6

-4

-2

0

2

4

6

8

Operating profit in % of net income

%

0

10000

20000

30000

40000

50000

60000

70000

80000

Equity

20012000199919981997

50

40

60

70

80

Equity-to-assets ratio

%

Net profit/Net operating income

Equity/Equity-to-assets ratio

▲ Lysne, David (President)

Administration Support● Berg-Hanssen, Harald● Flo, Rune◆ Fossum, Berit✳ Påsche, Elin✳ Sagmo, Mette A.✳ Sneen, Marit

Basin Modelling▲ Borge, Hans✳ Guldseth, Bodil▲ Hamborg, Martin▲ Kjennerud, Tomas● Lind, Kristin▲ Mann, Ute▲ Myhr, May Britt▲ Mørk, Mai Britt E.▲ Ritter, Ulrich▲ Tømmerås, Are◆ Vinge, Torun▲ Weiss, Hermann M. ▲ Zweigel, Janine


Employees as of 1 January 2002

Seismic and Formation Physics▲ Bøe, Reidar▲ Causse, Emmanuel▲ Cerasi, Pierre▲ Dong, Hefeng▲ Fjær, Erling▲ Gotusso, Angelamaria P.▲ Holt, Rune Martin▲ Larsen, Idar▲ Lothe, Ane Elisabet● Lund, Hans✳ Lynum, Ingunn▲ Maaø, Frank▲ Nes, Olav Magnar▲ Papamichos, Euripides▲ Schei, Grethe● Stavrum, Johannes▲ Sylta, Øyvind▲ Sønstebø, Eyvind F.▲ Zweigel, Peter▲ Østmo, Svend

Subsea and Well Technology▲ Carlsen, Inge Manfred▲ Dahl, Arne Morten◆ Gustavsen, Karl G.▲ Habetinova, Eva▲ Jacobsen, Kjell Arne▲ Kjølaas, Jørn▲ Kristiansen, Olav▲ Ladam, Yves▲ Larsen, Roar▲ Larsen, Rolf Erik◆ Lervåg, Johan H.▲ Mjaaland, Svein▲ Nakken, Erik I.▲ Nyhavn, Fridtjof▲ Onsrud, Gisle◆ Sneeggen, Cecilie▲ Straume, Erlend◆ Sørvik, Atle✳ Wanvik, Hilde▲ Ytrehus, Jan David● Øyangen, Terje

Reservoir Technology▲ Akervoll, Idar▲ Bergmo, Per Erik▲ Bjørkvik, Bård✳ Bjørseth, Eva Kristin● Frigård, Oddmund▲ Ghaderi, Amir▲ Holt, Torleif▲ Lindeberg, Erik G. B.▲ Moen, Arild▲ Mørk, Atle▲ Vassenden, Frode▲ Wessel-Berg, Dag

Employees legend by % as of 1 January 2002Legend▲ scientist● engineer◆ technical staff✳ administrative personnel

Engineers 9,5 % Administrativepersonell 9,5 %

Technical staff8 %

Researchers 73 %


Organisation as of 1 January 2002

Management

David Lysne . . . . . . . . . . . . . . . . . . . PresidentGrethe Schei . . . . . . . . . . . . . . . . . . Research Director, Seismics and Formation Physics DepartmentMay Britt Myhr . . . . . . . . . . . . . . . . Research Director, Basin Modelling DepartmentErik Iversen Nakken . . . . . . . . . . . . Research Director, Subsea and Well Technology DepartmentTorleif Holt . . . . . . . . . . . . . . . . . . . . Research Director, Reservoir Technology Department

Board of Directors, 2002

Nils Spidsøe (chairman) . . . . . . . . Managing Director, Sinvent ASRoar Arntzen . . . . . . . . . . . . . . . . . . President, SINTEFKarl Andreas Berteussen . . . . . . . . Director, PGS Reservoir ASHans Borge . . . . . . . . . . . . . . . . . . . Senior Scientist, SINTEF Petroleum ResearchErik-Sverre Jenssen . . . . . . . . . . . . Director, Norsk Hydro ASAJon Kleppe . . . . . . . . . . . . . . . . . . . . Professor, IPT, NTNUJofrid Klokkehaug . . . . . . . . . . . . . . Sector Manager, StatoilErik Lindeberg . . . . . . . . . . . . . . . . . Senior Scientist, SINTEF Petroleum ResearchOle Lindefjell . . . . . . . . . . . . . . . . . . Sr. Technical Development Coordinator, Norske Conoco ASFridtjof Nyhavn . . . . . . . . . . . . . . . . Senior Scientist, SINTEF Petroleum Research

President

AdministrativeSupport

Subsea andgyWell Technology

Seismics andyFormation Physics

ReservoirgyTechnology

BasingModelling


SINTEF GroupWith its 1700 employees, Norway's SINTEFGroup is the largest independent researchorganization in Scandinavia. We supply intelli-gent and profitable solutions to our customers'problems. Our products consist of knowledgeand related services based on research in tech-nology, the natural and social sciences andmedicine. Our turnover in 2001 was NOK 1.7 bil-lion. Contracts for industry and the public sectorgenerate more than 90% of our income, while7% came in the form of basic grants from theResearch Council of Norway.

Our vision and mission: SINTEF’s vision is tech-nology for a better society. We sell research-based knowledge and related services toNorwegian and international clients. SINTEFcontribute to the value-adding processes of ourcustomers and a sustainable social develop-ment.

Partners in cooperation: SINTEF collaboratesclosely with the Norwegian University ofScience and Technology (NTNU) and theUniversity of Oslo (University of Oslo). Personnelfrom NTNU work on SINTEF projects, while SIN-TEF staff teach at NTNU. The SINTEF-NTNUcommunity involves the widespread joint use oflaboratories and equipment. We are in thecourse of developing a similar program of coop-eration with the Faculty of Mathematics andNatural Sciences at the University of Oslo.

International cooperation: Contracts for over-seas clients generated 13% of our turnover in2001. About half of our international turnover isderived from EU research programmes.

Quality assurance: SINTEF is committed toensuring that we produce high quality deliver-ables. This means that our products are to berelevant and useful for our clients, maintain highscientific and quality standards, and be present-ed professionally. If required by clients, ourquality assurance ensures that our projectsmeet the requirements of NS-EN ISO 9001 quali-ty standards. Many of our laboratories areaccredited according to EN 45001 or the GLPscheme.

The SINTEF foundation consists of eightresearch institutes:

SINTEF Applied ChemistrySINTEF Applied MathematicsSINTEF Civil and Environmental EngineeringSINTEF Electronics and CyberneticsSINTEF Industrial ManagementSINTEF Materials TechnologySINTEF Telecom and InformaticsSINTEF Unimed

The SINTEF Group includes four researchcompanies:

SINTEF Energy ResearchSINTEF Fisheries and AquacultureSINTEF Petroleum ResearchMARINTEK - Norwegian Marine TechnologyResearch Institute

The SINTEF Group identified business areas:

SINTEF Oil and GasSINTEF Public SectorSINTEF BioMarine Industry

Documents

Petroleum technology for a world-wide market · Petroleum technology for a world-wide market. Activities SINTEF Petroleum Research is a research and development company located in