Pioner - CP 2012

On the look out fornew employees Page 6

ConocoPhillips – a leading energycompany Page 21

Greenlandpioneers Page 3

Teesside – “the upstream refinery” Page 18

Tananger base – Ekofisk’s lifeline Page 16

Greater Ekofisk Area redevelopment Pages 8–11

PioneerONS 2012 edition

Installation of the Ekofisk 2/4 L jacket.

As one of the largest independent exploration andproduction companies in the world, ConocoPhillips is in agood position to compete successfully and be a strongplayer within its core activity.

The “new” ConocoPhillips sees the company’s European activities gathered in oneregion, headed from Norway. The top priority for the North Sea in the next threeto five years is to complete the company’s major development projects on theNorwegian and British shelves and at Teesside, as efficiently as possible. This willincrease production and strengthen the company’s position in the North Sea.

GrowthFurther growth will primarily be organic. This mainly entails exploration,development of discoveries as well as increased production and recovery fromexisting fields. We will have strong focus on exploration in the North Sea, theNorwegian Sea and the Barents Sea. Exploration in northern areas requiresadditional expertise and vigilance, and we are positioned to deliver that. In the21st licensing round, ConocoPhillips was awarded ownership interests in twolicenses in the Barents Sea – one as operator. We are currently assessing these. InBaffin Bay, west of Greenland, we are currently preparing collection of new 2Dseismic and drilling of shallow wells for core samples.

Balanced portfolioConocoPhillips in Norway has a balanced portfolio comprising operated fields andfields operated by co-venturers. There is a high level of activity in projects, with thenew major developments on Ekofisk and Eldfisk, the cessation project and severalprojects in the implementation phase in the portfolio operated by co-venturers. The development projects in the Greater Ekofisk Area represent capital

investments of up to 83 billion Norwegian kroner (2011 value). The uniquereservoirs form the basis for this. More wells will be drilled – and this requiresrenewal of infrastructure – both above and under water. Ekofisk has producedsince 1971, Eldfisk since 1979 – and with this, the fields’ lifetime will be extendedby decades.Today’s multi-billion kroner investments will be tomorrow’s value creation.

As head of ConocoPhillips in Norway, theUK and the rest of Europe, Steinar Vågehas many eyes upon him. With theresponsibility for a production of morethan 200,000 barrels of oil equivalent perday, from Ekofisk alone, he is concernedwith maintaining focus and prioritizingwhen speaking of future challenges.“What you say is one thing, another isdemonstrating that you can deliver asagreed and add value,” says Våge.

Capacity and personnelWhen visiting Våge’s office in Tananger, itis easy to forget that the activities he leadsgenerate a turnover of 100 millionNorwegian kroner per day, 365 days peryear, in Norway alone. When theNorwegian state and the other licenseeshave taken their share, large parts of theprofit is invested in new projects. SteinarVåge has the overall responsibility forseveral major development projects in theGreater Ekofisk Area, including theconstruction of three major platforms. Amajor field development in the Britishpart of the North Sea comes in addition.“It is very important to maintain

progress in all parts of the developmentprojects,” says Våge. In total, the Norwaybusiness unit will invest 83 billion kronerover the next three to five years,corresponding to one-fifth of the cominginvestments on the Norwegian shelf. Vågestresses the need for integration andplanning between the developmentprojects and the ongoing operationalactivities in the Greater Ekofisk Area(platform operations, drilling and wellmaintenance, maintenance andmodification projects). Here we really getto test our integrated operations (IO)model. An important requirement for success

is also getting skilled personnel in alldisciplines.“We are hiring many new employees,

and adding to our team in Norway. We arealso transferring employees fromoperations to the major developmentprojects, we are bringing in projectpersonnel from ConocoPhillips in the USand other countries, and we are hiringpersonnel from contracting companies,”says Våge.

100-meter dashAlthough production rates are falling theNorth Sea is still home to a significantpart of the world’s proved oil reserves.Steinar Våge’s faith in the North Sea isundiminished, and ConocoPhillips plansmaking one-fourth of its total globalinvestments in the North Sea in thecoming years.“Our strategic perspective is 50 years,”

says Våge. This spring, ConocoPhillips wassplit into two companies, focusing ondownstream and upstream, respectively.

ConocoPhillips is now a pure-playexploration and production company,which pleases Våge.“It is comparable with running a 100-

meter dash and 3,000 meters. You can begood at both, but you can never becomethe world champion at both,” says Våge. “Exploration and production requires

us to be quick and nimble, doing thingsright – we must both find the oil anddevelop the fields. The industry is cyclicaland more exposed to fluctuations than thedownstream activities, which makes therisk correspondingly higher,” says Våge.He believes a lot of the success in Norwayis due to ConocoPhillips always being onthe look-out for improvementopportunities. “We have high standards and we

always ask ourselves how we can improve,”says Våge.

Environmental awarenessThe public debate concerning theenvironment and oil production oftendirects a critical eye at the oil companies.Steinar Våge appreciates the publicdiscourse, and feels confident thatConocoPhillips’ activities are prudent.“Critical voices are good, but it is

important to consider the facts andrealities. The industry is both technology-driven and environmentally aware, and wehave an intense focus on safe andenvironmentally prudent operations,” saysVåge, who is also the chair of theNorwegian Oil Industry Association.“As a company, we are happy to

communicate our operating model, whichoffers exciting technology and tasks. Themajority of our value creation goes to thesociety at large, as taxes and fees,” saysVåge. He believes that the company andthe rest of the industry will continue toattract young talent for the foreseeablefuture.“If you appreciate diverse tasks,

international career opportunities andworking in an industry that powers theworld, there are great opportunities foryou in our industry for development andcontributing to making a difference,”concludes Steinar Våge.

2 Pioneer ONS 2012 edition

Editorial

“New” company – new opportunities

This publication contains forward-looking statements within the meaning of the «safe harbor» provisions ofthe Private Securities Litigation Reform Act of 1995. Actual outcomes and results may differ materially fromwhat is expressed or forecast in such forward-looking statements. Economic, business, competitive andregulatory factors that may affect ConocoPhillips’ business are generally as set forth in ConocoPhillips’ filingswith the Securities and Exchange Commission.

Publisher: ConocoPhillips NorgeEkofiskveien 35, P.O.Box 3, N-4064 StavangerPhone: +47 52 02 00 00E-mail: [email protected] board: ConocoPhillips communication and government affairsNyhetstjenester ASPhoto: Kjetil AlsvikDesign: Eirik Moe AS Print: Stavanger Aftenblad

“Always looking for improvement!”

ONS 2012 editionPioneer

ConocoPhillips Europe President Steinar Våge compares thecompany with a top athlete, always striving to be best.

Steinar Våge,ConocoPhillipsEuropePresident

22nd round in the Barents SeaExploration activities in northern areasrequire additional expertise andvigilance, which ConocoPhillips is in thebest position to provide. The companyhas been present in the area for manyyears, and showed a very goodunderstanding of both environmentalconditions and the geology of the seabedduring the granting of licences in theBarents Sea in the 21st licensing round.Now the company is in full swing withpreparations for the 22nd round.“We’re in the midst of an evaluation

phase in which we carry on a dialoguewith all stakeholders,” says McCafferty.Among the challenges that must be

addressed are the high costs associatedwith the exploration drilling, and thelong supply lines to the Barents Sea. Inthe event of production the distance tothe markets will play an important role. “The advantage of the Barents Sea isthat it is free of ice,” says McCafferty.

Impressive GreenlandConocoPhillips’ licences off the westcoast of Greenland are full ofopportunities – and challenges.McCafferty believes it is crucial tounderstand the local conditions, both interms of the environment andpopulation, for those who wish tosucceed in Greenland.“When I got off the plane on my first

visit to Greenland, it was thirty degreescentigrades below zero. The scenery isdramatic, rugged and impressive. I wasstruck by the challenges and the respectthat Greenland inspires,” McCaffertyrelates, emphasising that no one isbetter equipped than ConocoPhillips toinvolve all stakeholders in operations inGreenland.“I dare to say that our environmental

conscience and concern for the localpopulation are far deeper than peopleback home are aware of. Explorationactivities represent a joint effortbetween the population and the playerson the shelf, whether we are talkingabout Norway, the UK or Greenland.The results will be that communities willbe supplied with new resources, whichalso serves our company,” concludes PaulMcCafferty.

“It hasn’t been difficult to sell thenorthern regions at the headquarters inHouston,” says Paul McCafferty. Theenthusiastic Scot works out of Tananger,where he heads exploration operationsin Norway, the UK and Greenland. Hehas worked in the company’s businessunits throughout the world and he isvery optimistic about the northernregions.“ConocoPhillips has extensive and

broad experience in exploration anddrilling in the northern seas. We're bigin Canada, we’re the biggest in Alaska,and we’re the player who has the mostexploration experience in Greenland,”says McCafferty.

In December 2010, ConocoPhillips wasgranted operatorship of a 10,000 km2

block in Baffin Bay on West Greenland.This is the northernmost concession, andwas a top priority in ConocoPhillips’application. With the award comes an obligation to

carry out an exploration program overfour years. “Environmental studies and

reprocessing of the 2D seismic havealready been carried out,” says RoyLeadholm, manager, new explorationventures, who heads the work onGreenland. “With this knowledge, we planto drill the first wells and acquire 3,000kilometers of new seismic data,” he adds.

Ice-free windowBaffin Bay usually becomes ice-free sometime in July, but seismic and drillingoperations are only possible during an ice-free eight-week window in August andSeptember. However, there is a steadystream of icebergs drifting southwards.

The seismic vessels can steer clear ofpossible icebergs. Satellite images,specialized ice-radar and visualinspections will be used to spot the ice.But this provides challenges relating toacquiring seismic data in a regular gridpattern.The drilling vessel has a positioning

system and tailored drilling equipmentwhich enables the vessel to move 30meters in any direction. If this shouldprove insufficient, the crew can detach thedrill string and move the vessel to avoidimpact.

Encouraging aspectsThere is little doubt there is oil onGreenland. The question is rather whetherit will be found in good quality reservoirsand in sufficient volumes to becommercially viable. Other players haveproved hydrocarbon shows further south,but the reservoir quality and volumes wereinsufficient.“One of the most encouraging aspects

about West Greenland exploration is thatthere is abundant natural oil seepage fromthe subsurface in the area. These seepshave been found onshore and are alsorecognized offshore through satellitemonitoring. Also, the sandstone reservoirswe are exploring for are well developed in

outcrops that have been mapped on DiskoIsland, further south,” says Leadholm. The exploration on Greenland is

headed from the company’s office inTananger. The Greenland team also hasseveral global resources at their disposalfrom the corporate pool of arctic experts.

ONS 2012 edition Pioneer 3

Exploration

Exploration department:

Looks to the northConocoPhillips’ long-term engagement in the northernregions is one of the most exciting initiatives in thecompany’s international operations.

Greenland pioneers

Qamut

Norway

Paul McCafferty

Acquisition of new 2D seismic and drilling of shallow wells forcore samples are two of the activities which will be carried outin the Qamut exploration license on West Greenland thissummer. There is only a two-month weather window, due toice and environmental concerns.

ConocoPhillips in the Baffin Bay

Roy Leadholm

EXPLORING ARCTIC WATERS: From the left: Peter Bormann,Niels Jørgen Ventzel, Chris Parry and Roy Leadholm.

best within planning and maintenance ofmaterial and operations offshore. A keycomponent is the “onshore reliabilitycenter” (ORC), one of the integratedoperations centers at the company headoffices in Tananger. The engineers

“We use models that describe expectedbehavior of the systems and that therebypredict the future. This means we can beproactive,” says Ole Klingsheim, manager,integrated operations in ConocoPhillips.The models he is speaking of represent the

working at the center monitor and analyzethe condition of the equipment on Ekofiskthrough a stream of signals.“You can compare the system with two

ways of changing a light bulb. Oneapproach is that you know how manythousand hours it is supposed to work andreplace it well ahead of time, even if manyof the bulbs will work longer. Alternatively, you find an indicator for

every bulb that the lifespan is nearing its

end and replace it just before. That ispredictive maintenance,” Klingsheimexplains.

“The blood circulation”The new operating model ensures themaintenance of the massive and heavymachinery that drives the operations atEkofisk. The pump systems are poweredby generators, which contain heavyrotating equipment. If these should stop,


Integrated operations

A look into the future

Ole Klingsheim Jonas Rydland

ConocoPhillips is pioneering interaction between the onshoreorganization and offshore. The new operating model takes yetanother step – into the future.

The Norway drilling optimization center.

triggered at Eldfisk. When the facility wasrestarted, engineers on shore discoveredthat a bearing in a gas turbine was runningwarm. It was discovered that the firehydrant had flushed the lube oil systemwith seawater, and the crew had to getnew lube oil quickly and clean thesaltwater from the system. During start-upof the gas turbine, it was discovered thatthe temperature in one of the bearingsalong the main shaft did not increase atthe same rate as the circulation of the hotlube oil.“We had to stop the start-up of the

machine, and we called our global experton turbines in Houston,” says JonasRydland, who heads the center. They werereferred to an employee in Darwin,Australia, who instructed the Eldfiskengineers how to enter the oil canals anduse inspection tools. The global expertgroup then discovered that the most vitalbearing had been damaged by theseawater and it was decided to replace theturbine. All bearings in the switchgear andall three compressors were checked at thesame time, and they all had taken damagefrom being exposed to ‘impurities’. “By replacing the turbine, we avoided

a breakdown of the entire compressortrain, which would have caused ashutdown of several weeks,” Rydland says.The incident provided ConocoPhillipswith a hint of how successful the newoperating model can be.“We try to interpret the signs as early

as possible in order to get a view of whatawaits us around the corner,” Klingsheimsays.

production would shut down.“These machines power all our

functions – our blood circulation – outthere,” Klingsheim says. If you are able topredict exactly when the variouscomponents must be replaced ormaintained, you can coordinateoperations, making the downtime as shortas possible. So far, these predictions haveyielded profit in contrast to regularintervals, which was how things weredone before.“We’re moving towards a system which

works better and better, at the same timeas the safety performance keepsimproving,” Klingsheim says.

From data to knowledgeBeing predictive – seeing into the future –means interpreting a vast volume ofsignals that by themselves do not tell youwhat to do. These signals, or data, mustfirst be collected and aggregated intoinformation, which then form the basisfor knowledge. This is ConocoPhillips´ bigproject – connecting several types ofknowledge, communicating andinteracting. The objective is better, saferand more efficient operations.“Competent employees in our various

centers for integrated operations utilizetechnology that enables interaction andoperations across disciplines and worklocations, says Klingsheim.

Acid testIn January this year, the ORC and the newoperating model had their acid test.During bad weather, a fire hydrant was

Every percent recovery increase from the Ekofisk fieldequals a medium-sized oil discovery – and significantadded value.

Since the start, more than40 years ago, the total valuecreation from the GreaterEkofisk Area has been1,858 billion Norwegiankroner (2011 value). Hadthe initial prognoses for theEkofisk field been correct,only 17 percent of thehydrocarbons would havebeen produced. The currentprognosis is 52 percent, andBrage Sandstad,ConocoPhillips’ operationsmanager in Norway, saysthat the goal is to increaserecovery further.“In the 1970s, it was

estimated that the Ekofiskfield’s lifetime would beover in 2011, after 40 yearsof production. But on thevery date of the 40thanniversary for theproduction start-up – 9June 2011 − we celebratedthat the NorwegianParliament approved thePlans for development and

operation (PDO) for Ekofisk South and Eldfisk II. We now have the foundation foranother 40 years of production,” Sandstad says. The enthusiast from centralNorway has worked for the company since 1978. He is head of operations inNorway, at the same time as ConocoPhillips is expanding heavily with newinstallations and undergoing a generational shift in its staff.

Production rate from the 1980sNot everybody is aware of the sheer dimensions at Ekofisk. 4,000 people have theinstallations in the Greater Ekofisk Area as their work place. At any given time,around 1,300 employees and contractors are working offshore. They all arrive byhelicopter from Sola, and Ekofisk has for many years been among the busiest“airports” in the country, based on the number of arrivals and departures. This saysquite a bit about the activity level.Every day, more than 200,000 barrels of oil equivalent are produced from the

fields in the Greater Ekofisk Area. An even greater volume of water is pumped intothe reservoir. This water injection is the main reason why production remains highon Ekofisk.“Any reservoir will experience a drop in the production rate as oil is produced

and natural pressure decreases. In the 1980s, the owners made a bold decision tostart water injection in order to maintain the reservoir pressure. The result hasbeen fantastic, and we have to go back to the 1980s to find a production rate ashigh as what we currently have,” Sandstad says.

Norway’s largest industry projectThe development projects in the Greater Ekofisk Area represent capitalinvestments of up to 83 billion Norwegian kroner (2011 value). The investmentsinclude drilling of several new wells and construction of new platforms and newinfrastructure, as well as modification of existing platforms.“A lot of the job is to make good plans and have people work well together. At

the same time, we need to produce with high regularity – and without unintendedincidents,” Sandstad says.

Driving forceConocoPhillips is a driving force for interaction and integrated operations in theoffshore industry. Brage Sandstad has for years pushed for closer cooperationbetween onshore and offshore – an effort that is now yielding results.ConocoPhillips has more than twenty centers for integrated operations, andfocuses on interaction across disciplines, players and geography across the entireorganization.“The basic principle of our operating model is that we need to work closer

together, have better communication and a more efficient and safer operation inthe North Sea. We create venues where we work together. Technology is a catalystwhich enables us to do this. We’re fully focused on developing our operating modelfurther,” Sandstad says.


Increased recovery

Tripled the recoveryrate – wants more

Brage Sandstad

“We want to get more from ourexisting fields, and our approach isstill water injection, new technologyand drilling new wells,” says Brage

Sandstad, operations manager,ConocoPhillips in Norway.

billion Norwegian

kroner to be invest

ed

On the look out for new

external experienced personnel, graduatesfrom the universities and apprentices.“All available positions are advertised

internally, so that employees get jobrotation opportunities and new careeroptions,” Motland says. Most positions are also advertised

externally. This involves traditionalnewspaper advertisements as well asonline advertising. The company also usesrecruiting agencies – particularly for keypositions. “Sometimes we need to goabroad to find what we’re looking for,”Motland says. When it comes toexperienced workers, especially withincertain technical disciplines, there is stiffcompetition between the companies.The external experienced personnel

group has a few years of experience fromthe oil industry. Graduates are recentmaster’s degree candidates who areoffered permanent positions inConocoPhillips from day one, and who,over the course of one or two years, rotatebetween various departments beforetaking up a regular position.“We’re very pleased with the response;

we had more than 900 applications for the20 graduates positions last time around,”Motland says. Apprenticeships in thecompany are also popular − both onshoreand offshore. Earlier this year, thecompany received 1,552 applications for24 apprentice positions.

Informal atmosphereConocoPhillips is well-known for offeringemployees competitive terms, excellentcareer options and a culture characterizedby an informal atmosphere and efficientcooperation.“Although a lot of people work here,

we have a tradition of saying goodmorning to each other in the hallways,”Motland says. Office doors are open, andit is easy to contact colleagues – evenacross departments. On a professionallevel, people embrace the principles ofcollaboration and knowledge sharing. “Ability to cooperate and enthusiasm

are qualities we look for in any candidate,”says Motland.

The activity level in the company is highas activities in connection with theEkofisk operations and the majordevelopment projects are under way.In recent years, the number of

Norwegian employees has been around1,850. Few employees resign, but after 40years of operation, an increasing numberare reaching retirement age. In addition,employees go on internationalassignments and the internal job market islarge. “This means that we constantlyneed new employees to fill positions,” saysHilde Motland, head of recruitment inConocoPhillips. The recruitmentdepartment continuously works to selectnew employees in order to cover thehuman resources needs in coming years. “We’re planning on hiring around 170

employees this year and around 120 nextyear, before we level out at a slightly lowerfigure,” Motland says. These figuresinclude recent graduates and apprenticesfor skilled workers positions.

Four categoriesConocoPhillips has four main categoriesof recruitment: Internal recruitment,


Recruiting

Hilde Motland

DEDICATED APPRENTICES AND MENTORS: Front from the left: Apprentices Bente Svåsand, Ruben Kristiansen, Knut Åne Svendsen, Eivind Lillestø and Espen DanielsenRear from the left: Mentors Jim Jensen, Kolbein Midthun, Arve Steen Jacobsen and John Magne Nilsen

Over the next three years, ConocoPhillips is planning to recruitmany new employees. Geology, geophysics, reservoirs andwells are key disciplines in the onshore organization. Thecompany is also looking to recruit new offshore employees.

New employees in ConocoPhillipsOver the next few years, the company plans to recruit 300 new employees.New employees are needed within the follow competence areas:

OnshoreGeologyGeophysicsReservoirDrilling and well serviceProcessMechanicalElectroInstrumentationHSE Finance

OffshoreProcessMechanicalElectroCrane

number of new

employees

employees

“After two years at the NorwegianUniversity of Science and Technology(NTNU), I was ready to leave Norwayagain,” says Sylvain Ferro. The French 26-year-old is a petroleum engineer and has

clear visions and expectations for his job,which is why his interest was arousedwhen he met ConocoPhillips during thecareer days at university.“I came along for a screening

interview for the graduate program, andwas offered a job in Rogaland just after myexams,” he says.

Cultural mixOne of the first things Ferro noticed aboutConocoPhillips was the company’s spirit,or l’esprit as he would say.“The company balances its culture of

personal performance with Norwegianvalues such as solidarity and distributionof benefits,” says Ferro. He started hisgraduate period in the well optimizationdepartment, and has also worked in thedepartment for partner-operated assets,which handles ConocoPhillips’ assets inimportant fields such as Alvheim,Oseberg, Troll, Visund, Huldra, Grane,Gimle and Heidrun.

Great social lifeAlthough he is very focused on his workand profession, he finds time to play teamhandball and socialize with friends. When

he came to Rogaland last year, he knewnoone.“ConocoPhillips really goes out of its

way to make new arrivals to the regionfeel welcome and enable them to establisha social network,” Ferro says, smiling. Helauds the graduate group, which holds get-togethers with both social andprofessional focus. The company also has aspecial forum for young employees, whereyoung professionals from all over theorganization meet to exchange experienceand raise their knowledge of the company.

Wants to learn and contributeFerro wants to specialize further in welltechnique – and he dreams of goingabroad. He is also concerned with findingsolutions to the challenges facing theindustry. “Many at my age talk about

environment, and in that context I amproud to say that I work forConocoPhillips, who is very much awareof the challenge. I always think: How canwe contribute?” says Ferro, replying to hisown question: “Creativity, innovation andtechnology development will be of majorimportance.”

Dagny Håmsø was a tank commander inthe Army, operating a Leopard battle tankin Bardufoss, Troms County. With 850

break horsepower and 45 tonnes ather fingertips, nothing could stop herwhen she led the way on newexciting missions.

GraduateToday, her situation is exciting in adifferent way. Håmsø is one of 19recent master’s degree graduates whoearned a place in ConocoPhillips’sgraduate program last year. Afterleaving the Army, she earned a degreein petroleum engineering from theUniversity of Stavanger.“I was really excited about all the

different things you can do in the oilindustry,” she says.

Hands onAs a graduate, you receive goodfollow-up and the opportunity to getto know various departments in thecompany. In May, Håmsø worked atthe reservoir optimizationdepartment at the head office inTanager. She enjoyed her time there,and later got the opportunity to workin the well intervention department.“I enjoy working hands on and

getting things to happen, so this

suited me very well,” she says. Shehas also had a chance to “sneakoffshore”, as she says.“The working environment on

the platforms is just fantastic,everybody helps out, and you learnquickly by seeing things inpractice,” Håmsø says.

Personal involvementConocoPhillips is always on theoutlook for employees who arepersonally involved – also outsidethe job. During the graduateapplication process she realized thather potential employer was lookingfor a combination of many goodthings.“I have a wide-ranging

background, with officer’s trainingfrom the Armed Forces, folk highschool and various summer jobs.I’m also a support person for anautistic person,” she says. She has somany interests that she is unable tosay what her dream position mightbe.“I’m a bit like a multi-tool, I love

to learn a bit of everything,” Håmsøsays, smiling.


Recruiting

Sylvain Ferro

Wants to contribute to technology development Sylvain Ferro from France sets high goals for his work, which is why he chose ConocoPhillips.

Dagny Håmsø

Attraction to actionAs a former tank commander, Dagny Håmsø likes her job to be challenging and fun. She found both at ConocoPhillips.

ConocoPhillips’ ambition is to remain a key player on the Norwegian shelf in 2050. Inthe coming years, investments totaling around 83 billion Norwegian kroner will be madein the Greater Ekofisk Area. In addition to the Ekofisk South and Eldfisk II projects, anew accommodation and field center platform, Ekofisk 2/4 L, is being built.The projects also include modification of existing platforms and infrastructure. New

pipelines are being laid and the drilling of many new wells will contribute to continuedhigh value creation on Norway’s pioneering field in the North Sea.


Redevelopment

Redevelopment of theGreater Ekofisk AreaOn 9 June 2011, ConocoPhillips celebrated the 40thanniversary of the production start-up at Ekofisk. On the very same day, the Norwegian Parliament passed the plans for development and operations for the Ekofisk South and Eldfisk II projects.

The Ekofisk Complex, seen from the south-east – July 2012.

The new accommodation and field centerplatform is an important part of therenewal of the Ekofisk Complex and thearea in general. The new platform willreplace the existing accommodationplatforms Ekofisk 2/4 H and 2/4 Q, as wellas the chartered accommodation rig. With its 552 single-bedded cabins,

Ekofisk 2/4 L will be the largest hotelplatform in the North Sea. In addition tothe accommodation module, the platformwill house a number of field centerfunctions and systems. It will be a regionaltelecommunication center, and willhandle air and sea traffic control. Theplatform will also house offices, helicopterhangars, a hospital, a cafeteria andrecreational areas.The platform will be equipped with

free fall lifeboats and be the musteringarea and preparedness center for searchand rescue. Travel to and form the EkofiskComplex will also go via Ekofisk 2/4 L.The jacket (built by Aker Verdal) and

the bridges (built by the SMOE,Singapore) were installed on the field inJune 2012. The topsides is currently beingconstructed by SMOE, and will beinstalled on Ekofisk in 2013.

Ekofisk 2/4 L facts:

• Height: 110 meters (jacket) • + 60 meters (topsides). Helicopter deckin addition.

• 552 beds, all in single cabins.• Office facilities.• Hospital, cafeteria and recreationalareas.

• Center for preparedness and safetyfunctions, including fire water.

• Two helicopter hangars.• Helicopter deck with a capacity of 50departures and arrivals daily.

• 10 free fall lifeboats, each with 70 seats.• Workshop and warehouse. • Interior floor space 15,000 m2.

Busy timesfor NorwayCapitalProjectsConocoPhillips’ NorwayCapital Projects (NCP)organization is currentlyundertaking theconstruction,installation andhandover to operationsof three major projectsto prepare the GreaterEkofisk Area for thefuture.

The Ekofisk accommodation andfield center project, the EkofiskSouth Project and the Eldfisk IIproject all are large projects in theexecution phase. In addition,extensive modifications are beingcarried out on existing facilitieswithin the Greater Ekofisk Area.When I look at the portfolio of

projects, there is a diverse set oflocations where work is beingcarried out. For the Ekofiskaccommodation and field centerproject, contracted work is beingdone in Norway, Singapore,Denmark and Finland. With theEkofisk South and Eldfisk IIprojects, work is being done inNorway, Spain, Poland, Finlandand India. One of ouraccomplishments is being able toattract highly skilled andmotivated people. Teamwork is amust! The most important objective

in all our activities is to safeguardthe health and safety of our people,and I am proud of our ongoingsafety commitment andperformance on the variouslocations. Times are busy and the work

challenging, but I’m pleased to saythat we are on the right track todeliver the projects that we have inexecution safely, predictably andcompetitively. We are focused onquality and delivering best-in-classperformance.

John DevinsManager, Norway Capital Projects


Redevelopment

Ekofisk 2/4 L – new “hotel” for the Ekofisk Complex

beds, all in

single cabins

Installation of the Ekofisk 2/4 L jacket and bridge support.

Illustration

: Traino

r AS

Illustration

: Traino

r AS

The project includes the construction of thewellhead platform Ekofisk 2/4 Z, and the subseafacility Ekofisk 2/4 VB. A total of 44 new wellsare to be drilled and a new water transportpipeline will be installed.The unique chalk reservoir forms the basis

for the project. The purpose is to have moreproduction wells enter operations and to expandthe water injection capacity. This means we canmaintain safe and stable production for a longtime ahead. The jacket for Ekofisk 2/4 Z (built by

Dragados in Cadiz, Spain) and bridge to connectthe platform with the rest of the EkofiskComplex will be installed in the summer of2012. Pre-drilling of wells will commence once the

2/4 Z jacket has been installed and ready. Thepre-drilling will be handled by a jack-up drillingrig.The topsides is being constructed by Aker

Egersund and will be installed in 2013.Ekofisk 2/4 VB is located on the seabed three

kilometers south of the Ekofisk Complex.Installation work started in the summer of 2012.Water injection will start in the first quarter of2013.

Ekofisk South facts:

• Increased production of 25 – 35 million Sm3

oil equivalent.

• Wellhead platform Ekofisk 2/4 Z with 36wells; 35 production wells and one for returnof cuttings.

• A 116-meter long bridge will connect theplatform to the Ekofisk Complex.

• Subsea facility Ekofisk 2/4 VB with eightwater injection wells.

• Electro-hydraulic and fiber optic controlumbilical from the subsea facility Ekofisk2/4 VA to Ekofisk 2/4 VB. This means that alsoEkofisk 2/4 VB can be operated from shore.

• A five-kilometer long pipeline for transportof injection water from the Eldfisk Complexto Ekofisk 2/4 VB.

• Modifications of existing platforms to tiethe new facilities to the existing facilities.


Redevelopment

Ekofisk South wells tobe drilled

Ekofisk 2/4 Z

Ekofisk 2/4 Z jacket under construction in Cadiz, Spain.

The Ekofisk 2/4 VB subsea water injection facility.

Illustration

: Traino

r AS

Eldfisk II facts:

• Increased production 35-45 million Sm3 oil equivalent.

• New platform 2/7 S with 40 wells, process facility and 154 beds, connected to 2/7 E via a bridge.

• New oil and gas export pipelines, connection of a receiving pipeline from Embla 2/7 D and an external power cable.

• Drilling of two new wells and conversion of Eldfisk 2/7 A to a wellhead platform, conversion of Eldfisk 2/7 FTP to a bridgeand pipe support platform and upgrade of key systems on Eldfisk 2/7 B.

• New local equipment room, LER, on Eldfisk 2/7 S.

• Power and fiber optic cable for transmission of up 20 MW to Ekofisk 2/4 Z and Eldfisk 2/7 S. This will secure energy efficientflexibility between the fields in the Greater Ekofisk Area.

Eldfisk 2/7 S facts:

• Accommodation module

• Wellhead facility

• Process facility

• Central control room for the EldfiskComplex

• Treatment system for produced water

• Workshop and warehouse

• Power generator

• Flare on new bridge support betweenEldfisk 2/7 S and Eldfisk 2/7 E

The project includes Eldfisk 2/7 S, a newintegrated platform with wellhead andprocessing facilities, 40 new wells and154 cabins. The platform will beconnected to the Eldfisk Complex by abridge. Other main elements include anew local equipment room, newpipelines, new electricity cable andumbilical, as well as extensivemodifications to existing facilities andinfrastructure.The purpose of the Eldfisk II project

is to increase recovery rates and maintainsafe and stable production, as well ascontinue operation of the remotelyoperated Embla field, tied in to Eldfiskvia a pipeline. The project is a furtherdevelopment of infrastructure in an areathat is already well developed, and whichhas been in continuous operation since1979. The current Eldfisk field producesfrom 44 wells. Eldfisk II will increase therecovery rate from the Eldfisk field from22 to 28.5 percent.The jacket for Eldfisk 2/7 S is under

construction at Dragados in Cadiz, Spain,and will be ready to be shipped to thefield in 2013. The topsides is beingconstructed by Aker Stord, and will becompleted in 2014.The new equipment room for Eldfisk

2/7 A is being built by Aker Egersund andwas installed in July 2012.


Redevelopment

Eldfisk II

newbeds

The newpipelinegoing intothe sea.

The LER module (localequipment room) underconstruction in Egersund.

Pipelaying at the Eldfisk Complex.

ConocoPhillips awarded contractsworth 36 billion kroner in 2011. 30 billion went to Norwegiansuppliers.

“For most of ourprocurements, wehave a broadinternationalapproach,” saysTove NinaKlemmetsrud,procurementmanager inConocoPhillips inNorway.According to lastyear’s figures thecompany, onaverage, spent 50million Norwegiankroner everysingle day, a totalof around 18

billion kroner, on goods and services from externalsuppliers. Of the 365 contracts awarded in 2011, 313companies had a Norwegian postal address. Thismeans that some of the sub deliveries may in turncome from other countries, but that the valuebenefits a Norwegian player which normally createsits value though Norwegian employees. “Norwegian players have won these contracts in

stiff competition on equal terms with internationalplayers,” Klemmetsrud says. She believes part of theexplanation why Norway does so well in thiscompetition, is that Norwegian suppliers haveadjusted to the needs of the oil industry and often lieat the forefront of the technological developments.

Joint effortsA typical contract with ConocoPhillips will lastbetween three and five years. “We attempt to facilitate a win-win situation

where the suppliers use their relationship andcontracts with ConocoPhillips as a platform todevelop new technology,” Klemmetsrud says. Oneexample of this is down-hole technology, a majorfield continuously driven forwards through researchand development.“The offshore technology develops just as fast as

onshore. Many of our contracts are industrial jointventures for technology, which we don't yet know ifwe can utilize. The companies need us to test thisnew technology, and we’re willing to make this efforttogether with them,” Klemmetsrud says.

Not just economicsAny purchase of goods and services done byConocoPhillips, is subject to strict regulations (basedon EU’s procurement directive). This means that allsuppliers must follow the same requirements forqualification, and everybody needs to receive thesame information beforehand.“The competition is about more than just

economic requirements. We also consider financialand technical criteria, and we assess safety andmanagement systems,” Klemmetsrud explains. Partof ConocoPhillips’ vision is to expand the interactionmodel to also apply to suppliers.“Interaction across companies, disciplines and

locations, is one of our success criteria, which weinvite our suppliers to take part in,” Klemmetsrudsays.

Providing growth for NorwegiansuppliersLinjebygg Offshore in Molde has worked safely and efficientlyoffshore for ConocoPhillips for 20 years. This year, the twocompanies signed a new five-year contract.


Suppliers

Eight of tencontracts toNorway

Tove NinaKlemmetsrud

Suppliers, who work safely, efficiently andcontribute innovative solutions, creategreat value together with ConocoPhillips.One of them is Linjebygg Offshore (LBO),who did their first job on Ekofisk in 1991.The job was cutting away boat fenders inthe platforms’ splash zone − a demandingassignment, also in terms of safety. In2001, LBO was awarded a largerframework agreement for Ekofisk. Thisprovided the basis for the company’sdevelopment to become the country’slargest player within offshore accesstechnology. In 2012, LBO has 500employees and a budgeted turnover of 700million Norwegian kroner.“We specialize in difficult access and

rigging without crane cover, and ourengineers are experts on both designingsolutions and methodology,” says BerntSchjetne, department head forengineering services in LBO.

Bigger than everThe tasks include access technique andassociated tasks withindesign/engineering, offshore work andtraining on Ekofisk. The contract alsoprovides options for the delivery ofcomplete projects (EPCI). On average, theagreement will employ around 100 peopleannually, and the contract is one of thelargest ever awarded for access techniqueon the Norwegian shelf. The Ekofiskcontract has already caused LBO to openan office at Forus, outside Stavanger, toremain in contact with employeesoffshore.“We have daily meetings with offshore,

regarding health, safety and theenvironment, and what happens in termsof the facility,” says Tormod Thorske,responsible for LBO’s operations atEkofisk.

New toolsOver the 20-year partnership withConocoPhillips on Ekofisk, LBO hasdeveloped several new tools to performwork in areas that appear to beinaccessible. These include a cofferdamsolution, which is a sort of miniature ‘drydock’ fastened to the constructions in thesplash zone, enabling workers to workefficiently and safely in the zone. Other

innovations include remotely operatedoperations as well as operations at thehighest point on the platform − the top ofthe flare stack.“The new contract was a confirmation

of our good cooperation withConocoPhillips, and it is important so thatwe can continue to develop efficient, safeand environmentally friendly solutions forprojects on Ekofisk in the coming years,”says department head Tore Larssæther inLBO.

Safety firstMany employees in companies like LBOhas background as mountaineers, whichgives them a unique combination oftechnical skills and understandig of risk.

“Linjebygg Offshore hasa sound safety culture andproven safety record,” saysKnut Olai Slettebø, incharge of managing thecontract in ConocoPhillips.All suppliers who are

awarded a contract with ConocoPhillipshave been through a tough biddingcontest, proving that they are the topsupplier within their field. The maincriteria are safety, professional contentand price. ConocoPhillips appoints threedifferent committees who assess their areaindependent of the other two.LBO can boast zero serious incidents

through its 20-year history withConocoPhillips.“We have a good dialogue regarding

safety issues. They also use people who arecreative and proactive in their approach,and who notify us of unforeseen eventsand conditions,” Slettebø concludes.

Linjebygg Offshore getsto the most inaccessibleareas on offshorefacilities.

Knut OlaiSlettebø

contracts

awarded

in 2011

Hans Christian Myhre, ROV supervisorand Tor Gunnar, LBO supervisormonitoring the operation at Ekofisk.

Rune Rognskog (right) and Tor Gunnar Leren.


Suppliers

Photo: Terje Aamodt

this is to develop wells that produce forlonger and better. This is why newtechnology and processes are tested.

Flexibility The advantage with intelligent wells isthat process technicians can control theproduction in the various zones in thewell. This means that the hydrocarbon-producing zones can remain open, whilewater-producing zones are closed.Controlling the water in the well isimportant in order to reduce costs andimprove the oil production.The production zones can be moved

to adapt to changes in the reservoir. Thisflexibility is especially important for long,horizontal wells, as many wells producefrom multiple layers with differentreservoir pressure. The IWS valves canalso be closed during maintenance,which prevents flow between formations.This also increased the productionstability. The right stimulation of production

wells in chalk reservoirs is necessary.IWS technology enables selectivestimulation of the zones in the well,which saves both time and costs. Since 1987, water injection has

proven to be efficient in order tomaintain high production, increasingrecovery rates and controllingsubsidence. The IWS equipment can alsobe used in wells for water injection in thesame fashion as for oil producing wells.“Well design using the technology

helps us improve our management of thereservoir. This means we can achieve ahigh production level and improvedreservoir utilization. Improved control ofwater injection means both increasedproduction, improved control of thereservoir pressure and better utilizationof the resources in the area,” Pedersensays.

The first well, Ekofisk 2/4 B09C, wascompleted using IWS - Intelligent WellSystems technology. At start-up, the wellproduced around 4,000 barrels oil perday. Testing the valves in the well wasperformed at a water depth of 3,000meters, and production is good from thevarious zones. “We control the well from the

platform’s control room in order toachieve the desired production fromeach zone. The IWS technology workswell, and the experience we now gainwill be used in the completion of thenext well,” Actis says.The first test well was a full-scale test

of the IWS technology in a cementedwell, while the next applied completiontechnology in an uncemented well withproduction packers which divide thezones.

Strategically important Ekofisk has produced for more than fortyyears, and investments in the future arenow being made. “Technology that increases the

recovery rate from the field, such as theIWS technology, creates significantvalue," says Per Pedersen, well planningdirector in ConocoPhillips. Theparamount goal for ConocoPhillips is tosecure stable production and increasedrecovery. One of the means to achieve

Knowledge sharing ConocoPhillips in Norway is alsodeveloping new expertise with theIWS technology through a series ofsessions for training and knowledgesharing. Participants include not justpeople from the completionenvironment, but also the disciplinessupporting drilling and well activities. “We continue to optimize IWS

completion, even outside of Ekofisk.We work to achieve higher productionvolumes and to manage the reservoirin the best possible manner,” Actissays.


Technology

The first intelligent wells on Ekofisk

Intelligent wellsystems – IWSThe IWS technology utilizes valves in the well whichare controlled from the surface by using hydrauliclines. This means you can control the amount of waterin the production wells, or where water is injected in tothe water injection wells. IWS also incorporatespressure and temperature sensors at each valve, inorder to monitor the flow in each zone. This way, youachieve improved control of the reservoir.

IWS completion is mostly used in sandstonereservoirs. Applying this technology to chalk reservoirsis new, and carries with it some challenges in terms ofwell completion. As many as eight IWS valves can beused for long horizontal wells.

The valves and well system has been tested up to60 barrels per minute to demonstrate how robust thesystem is, both in stimulation and production.

The reservoirThe Ekofisk reservoir is located three kilometersbelow the surface, at a water depth of between 70and 75 meters.

The reservoir itself is ten kilometers long andfive kilometers wide. At its thickest, the reservoir is300 meters.

The Ekofisk field is the largest of eight fields inthe Greater Ekofisk Area. Of these, four are currentlyin production. Ekofisk, Eldfisk and Tor arecretaceous reservoirs where hydrocarbons are tiedto cretaceous particles. Embla is a sandstonereservoir in the ‘basement’, about a kilometerfurther down from the cretaceous fields.

According to estimates from the NorwegianPetroleum Directorate, as of 31 December 2011, theEkofisk field contains the largest remaining oilreserves on the Norwegian shelf, with 120.9 million Sm3.

A long historyMore than 60 million years ago, the North Sea was a shallow sea with vast amounts of tiny animals covered by a thincretaceous shell –coccoliths. Thesefell to the bottom asthey died, andthroughout millionsof years they formedlayers that are several hundred meters thick. Later they were covered by mud and shale, and they are now in themiddle of the North Sea, more than 3,000 meters below the seabed.

In the 1960s, few believed that the cretaceous reservoirs contained recoverable oil, but geologists now knowthat they can be valuable oil sources.

The hydrocarbons are found in the tiny pockets in the limestone. Due to extensive cracks in the stone, thehydrocarbons can move between various zones, and this also enables us to recover the oil.

The cretaceous reservoirs are, in other words, somewhat different from the sandstone reservoirs, wherehydrocarbons are found ‘between’ the grains of sand.

Sound knowledge about complex conditions deep down in the earth’s crust is needed to maintain a stable andhigh production level and to utilize available technology for the special properties found on Ekofisk.

The first intelligent well in the Greater Ekofisk Area enteredproduction this spring. The second came online this summer.These are the two first intelligent production and waterinjection wells where known technology is applied in a newway adapted to the chalk reservoirs in the area. “The results areencouraging,” project manager Steve Actis says.

Drilling at Ekofisk 2/4 B.

From the driller’s cabin at Mærsk Innovator.

Willy Coffey (left) and Jesse J. Constantine inspecting the valves on the drill string.

– Yeah, I suppose it could happen,maybe.“Then you’re among the 15 percent

of the population able to do so,” saysTeddy Broadhurst, born and raised atSola, with a three year break in Australiaas a young man. Broadhurst is anenthusiastic leader of the PSI behaviorconcept. Using a simple method ofquestions and answers, the method hascontributed to changing the mindsetsurrounding undesirable incidents. PSIentered use in 2004, and has been oneof several important measures tosignificantly reduce incidents since.

A short talkThe method remains the same onshoreand offshore: Have a short talk withcolleagues, or yourself, before startingthe day or the task at hand. The talk isfocused on identifying remaining riskthat could be present. Broadhurst has anote card of PSI questions anybody canask themselves:– How can you and others be injured?– What type of accident could occur?– How can you and others avoid gettinginjured?– What if something unexpectedhappens?– What have you done to preventinjuries to you and your colleagues?

– Did you wear your safety belt drivinghere today?– Yeah, otherwise it’ll beep...– So, you’d get behind the wheel withoutthe belt on if you didn’t get a warning?

Out of the officesAfter almost 40 years with the company,Broadhurst knows his stuff. For 25 yearshe worked as a process technician,offshore installation manager and head ofoperations on Ekofisk before “goingonshore” and starting as a safety advisor inthe health, safety and environmentdepartment. “We needed a way to get the managers

out of their offices, to get them away fromjust sitting there, saying ‘safety first,”Broadhurst says. During a major safetyconference in 2003, a working group wasgiven the mandate to propose howConocoPhillips could best achieve this.“In March, a year later, we got the

acceptance and approval for PSI,”Broadhurst says. In late fall 2004, trainingstarted for company employees. Usingprofessional actors and educators,everybody on the course was challenged toparticipate actively and voice theiropinions. According to Broadhurst, alltypes of employees become enthusiastic.“During the full day course we have a

maximum of 30 minutes of powerpointpresentation. The rest is participationthough involvement, with a healthy doseof humor. The result is that peoplebecome aware, get their priorities straightand care about each other. When we getpeople personally involved, it works,”Broadhurst says.

Zero visionThe objective for PSI is to cut the numberof undesirable incidents to zero. At thesame time as the Norwegian andEuropean parts of the company are using

PSI to come closer to the zero vision.Broadhurst travels the world to promotethe PSI concept to staff and suppliers.“There is a massive interest in PSI, and

several business units have started usingthe tool. I’m convinced that there will beeven more,” Broadhurst says, whocurrently is in charge of HSE at theconstruction of the Ekofisk 2/4 L platformin Singapore.“The SMOE yard has implemented the

program, and we’re now training workersin various languages, such as Tamil,Bengali, Malay and Chinese,” Broadhurstsays. In Norway the yards at Stord,Egersund and Verdal have adopted PSI.Broadhurst believes the issues remain thesame no matter where in the world youwork.“For many, it is a challenge to talk

about something else than the weather orwhat your plans are for your off period.Now we have people talking about safety,be they welders, crane operators, orprocess technicians,” Broadhurst says.


Safety

20/20 hindsight beforehandPersonal safety involvement (PSI) works. The method has beenan important contribution to the significant reduction in thenumber of undesirable incidents in ConocoPhillips.

PSI – personal safetyinvolvementBehavior-based safety measure focusing on eachindividual taking an active responsibility for theirsafety and that of others. Everybody is trained toask basic questions before starting a job, such as“What if something unexpected happens?” or “Howcan you and others avoid being injured?”

Teddy Broadhurst

The PSI falcon made up of portraits of employees dedicated to personal safety involvement.

Tonnes of freight to Ekofisk

• Approximately 400,000 tonnes are shipped to thefield each year. This is equal to the weight ofNorway’s entire population, or the weight of300,000 cars.

• On average, there is one departure from Tanangerbase to the Greater Ekofisk Area each day – 360departures a year.

• The vessels travel a total of 120,000 nautical milesper year. This corresponds to more than 220,000kilometers or 4.5 times around the earth.

• Each vessel takes about four and a half days for around trip from the Tananger base – Ekofisk. Ittakes about 16 hours to sail to the Greater EkofiskArea.

• 70,000 lifts are carried out annually at the basearea, i.e. one lift every three minutes duringworking hours.

structures or removing old ones,” says JanBjerga.The Tananger base covers around

50,000 square meters. In addition, it has adesignated quay measuring 165 meters.The area is divided between quay area forloading and offloading, pipe storage aswell as buildings with storage, workshopsand terminals.

PioneersConocoPhillips is a pioneer withinNorwegian oil activity – also within thesupply service. In the beginning, thesupply vessels were significantly smallerthan the current vessels. Continuous workhas taken place since the start to steadilydevelop better and safer load carriers suchas containers, baskets and chemical tanks.Investments are also being made in newand safer equipment, such as trucks,cranes and lifting gear.“This has resulted in very high safety

standards on the base today,” Bjerga says.

Digital worldThe future focus areas within logisticsconcern development of new digitalsystems for increased efficiency and evenbetter safety in the logistics processes,while modernizing the supply fleet.An important contribution to the

At any given time, there are about 1,200-1,300 people working on the platforms inthe Greater Ekofisk Area.“Everything they need – food and

water, work clothes, diesel, drilling fluid,tools, material and equipment are shippedout using supply vessels,” says Jan Bjerga,director, base logistics.The base area was put to use almost 40

years ago. It became apparent early on thatan efficient logistics organization isimportant in order to ensure that offshoreemployees always have the correctmaterials and equipment at the right time. “A minimum of four supply vessels ply

the route between Tananger and theinstallations in the Greater Ekofisk Area.In addition, ConocoPhillips has hadseveral special vessels that operatepartially out of other bases and performwork within well maintenance, lifting new

development is the establishment of a24/7 staffed logistics centre in Tananger.The centre is staffed by maritimepersonnel. The employees are incontinuous contact with the vessels andinstallations, with primary emphasis onmonitoring and following up maritimetraffic.

SafetyDespite all the modern technology,ConocoPhillips is very aware that a goodlogistics chain is always dependent onskilled and motivated employees whoknow what it takes. “Our first priority isalways the personnel safety. This has been,and will always be, the core value we givethe highest priority,” logistics managerKjell Hveding says.


Tananger base

Ekofisk’s lifelineEvery year, nearly 400,000 tonnes of goods are transportedto the installations in the Greater Ekofisk Area. Everything istransported through ConocoPhillips’ base, which has beenlocated at Tananger since 1973.

tonnesshipped t

o

Ekofiskeach year

Jan Bjerga

Loading a supply vessel in Tananger.

Supply vessels at ConocoPhillips’ Tananger quay.

Every vessel that carries out assignments in the GreaterEkofisk Area is followed up and coordinated from thelogistics centre in Tananger, in close dialogue with theoffshore radar service.

Daily departuresThe centre receives daily requests for what theinstallations want and need. These needs must then bemet within the deadlines and plans set. Implementingthe sailing schedules for the various platforms is the toppriority.

“Therefore, it is like a giant puzzle to put together allthe needs for efficient, safe and environmentally friendlysailing schedules,” says Paal F. Bjåstad, director, marinelogistics.

Marine expertiseThe logistics centre is staffed by seven employeesworking shifts − as well as support functions.Most have marine backgrounds as officers onsupply vessels and anchor handling vessels.

“This means that they are very familiar withthe situations and dynamics on board the vessels,at the same time as it increases the understandingof the possibilities and limitations of theresources,” Bjåstad explains.

“24/7 onshore support contributes to us onboard the supply fleet working more efficientlyand communicating better. We avoidmisunderstandings, and there is less downtime,”explains captain Kim Sekkingstad on board SkandiKvitsøy.

Coordination toolA lot of work and energy have been invested intool and expertise development to achieve thebest possible overview and systems. Tools for 3Ddisplays of traffic in real time, such as Vispo,handle both monitoring, planning andcommunication for transport to and from theinstallations.

“We have a good overview of all the vessels atall times, with the position, speed, course andcapacity. This provides us with a betterunderstanding of the marine scenario on the field.This helps facilitate improved safety. In addition,we can plan the cargoes centrally onshore andthus utilize capacity in the best manner possible,”Bjåstad concludes.

“We are satisfied with having a modern fleet withenvironmentally friendly and efficient ships thatserve the fields. But it is the skilled sailors whoprovide good safety and high regularity,” Moenensures.

Normally, four vessels serve the field with dailydepartures from Tananger. In addition, the companycan employ an additional vessel or more duringperiods with extra high activity.

ConocoPhillips also has up to four standbyvessels in the Greater Ekofisk Area. These vesselshandle preparedness tasks and are specially equippedfor search and rescue, fire extinguishing and oil spillresponse. They also carry out some shippingassignments between the installations and serve astemporary storage space, when needed.

High activityDuring periods with complicated offshore tasks, suchas installation of jackets and bridge supports, therewill be project vessels, lifting vessels, special vessels,barges and tugboats in addition.

At the same time, there could be well stimulation

vessels, seismic vessels and vessels for subseaoperations with their special assignments in thearea.

“During the course of a year, there could bearound 100 different vessels that serve Ekofisk,” saysMoen.

ModernizationDuring the last two years, ConocoPhillips has carriedout a considerable modernization of the supply fleet.

“We have entered into new agreements with shipowners to ensure that we have modern andenvironmentally friendly supply vessels, which arealso attractive to the sailors in a tight labor market,”Moen says.

All of the supply vessels have Scandinaviancrews and sail under the Norwegian flag.

The newly contracted ships have about the samecapacity with about 1,000 square meter loadingdecks. At the same time, the company’s supplyservice ranks near the top as regards utilization ofcapacity.

“But high regularity is the most importantaspect, with daily departures from Tananger,enabling us to deliver what the installations needwhen they need it,” Moen says.

Environmental benefitsA modern fleet with energy-efficient engines, alongwith a sailing schedule which is set up to ensurehigh environmental standards, reap benefits.

“So far, we see that modern ships can reduce fuelconsumption by about 20 percent. Together withother emission-reducing measures, such as NOX

cleaning, the modernization contributes to animportant environmental benefit,” Moen says.


Tananger base

Coordinates shipping traffic from landThe logistics centre at ConocoPhillips’ main office in Tananger – the’onshore logistics centre’ (OLC) – is open 24/7 for managing andcoordinating the maritime traffic in the Greater Ekofisk Area.

Skilled sailors – great ships“It’s all about the people,” says Tor Ståle Moen, director, chartering andcompliance logistics.

Paal F. Bjåstad

Tor Ståle Moen

Unloading cargo at the Ekofisk Complex.

at the Seal Sands quays every other day. Itcan take up to 24 hours to fill the largestof the tankers with crude. The number ofNGL vessels is even higher, with around300 calls each year to export NGLproducts.

High level of activity“2012 has the most extensive workprogram ever at the terminal since theplant was completed,” Lee says.Several hundred people perform

inspection and maintenance work. Majorprojects include overhauling andupgrading the NGL facility and the storagetanks for the next 20 to 40 years. Thefacility still has some equipment datingback to 1975. As always, the question iswhether to extend the design life or if theequipment is to be renewed or replacedwith something different.The Teesside terminal is about halfway

through a ten year plus program to set upthe facilities to take business towards2050. Employees have been busy with the

The terminal at Seal Sands on England’snorth-east coast has been at the receivingend of the 356-kilometer long pipelinefrom Ekofisk since 1975. Crude and NGL(natural gas liquids) are desalted,fractioned and polished before thestabilized crude and NGL products arestored and exported around the world.The terminal has a capacity to receive

as much as 800,000 barrels of oilequivalent from around 20 fields in theNorwegian and British parts in the NorthSea – almost one percent of global dailyproduction.

Nick Lee, generalmanager at Teesside,says that Ekofisk andTeesside have beeninextricably linkedsince the terminalopened 37 years ago.“Our business existsbecause of Ekofisk,and Ekofiskcontinues to deliver

because of the services we provide,” hesays. The plant was originally built tooperate for a nominal 25 years. “We’renow looking forward, and we’re in themiddle of a major investment program,”he adds.

50 percentIn 2011, the terminal received 121.5million barrels of oil equivalent. Thisequals around 50 percent of the totalcapacity of the pipeline system. Thedecrease is mainly due to the oil fieldsmaturing.In addition to the production from the

Greater Ekofisk Area, the terminal at SealSands also receives oil and NGL fromConocoPhillips’ own fields and fieldsoperated by others on the Norwegian andBritish shelves: Valhall, Hod, Ula, Tambar,Blane and Gyda (Norway) and the J-Block(Judy/Joanne), Jade, Fulmar, Auk, Orion,Clyde, Gannet AG, Halley, Janice andAffleck (the UK). It is expected thatproduction will increase towards 500,000barrels per day in coming years due toConocoPhillips’ development of theJasmine field in the UK and the furtherdevelopment of Ekofisk and Eldfisk, aswell as BP’s Valhall field and new third-party fields. The stabilized crude is stored in ten

gigantic tanks, with a storage capacity of750,000 barrels each, before beingexported. On average, one oil tanker docks

life extension program since 2006. In projectengineering parlance this is truly ‘brown’field work that comes with all the challengesof working in and around a producing asset.Oil fractionation units are being

overhauled; gas turbines and compressorshave been taken back to ‘zero hours’conditions and enhanced with newtechnology; crude, cryogenic NGL andeffluent tanks are being refurbished and re-instrumented; NGL columns, heatexchangers and pumps are beingrefurbished; gas treaters and the full sitecontrol system replaced – to name just a fewof the activities.Due to the high activity level, the

Teesside terminal now has the highestnumber ever of personnel workingthere. Currently, ConocoPhillips has300 staff at the site. In addition, thereare more than 500 contractors inconnection with maintenanceservices.“It is busy times, as we are

preparing for the future,” Nick Leesays. “We’re looking forward to manymore years of operation. Completingthe work safely while staying online isa challenge. Success depends on ouremployees’ renowned professionalismand ingenuity. You can trust theTeesside terminal,” he concludes.


Teesside terminal

Teesside –“the upstream refinery”

FACTSLocated at Seal SandsIn operation since 1975Receives more than 400,000 barrels per day of unstabilised crude oilCapacity of 800,000 barrels per day800 people work on sitePart of the Norway business unit

NORPIPENorway and UK oil production

CATS Propane C4 Mixed C4

Receivingspheres(4)

Receiving spheres (4)

Stabilizationtrains (6)

Greatham Crude Storage (10)

NGL plant

Jetties for loading (7)

Cleaningprocesses

Stabilisedcrude storagetanks (10)

Ethanestorage Loading

Loading

Loading

Loading

Loading

Methane forplant fuel

Propanestorage

ISO-butanestorage

Normalbutanestorage

Stabiliz

ation

train

s(6)

De-ethanizer towers

(2)

De-mathanis

er tower

(1)

De-propanis

er towers

(2)

Butane sp

litter

(1)

PROCESS

TEESSIDE TERMINAL

Every day, more than 400,000 barrels of oil equivalent arrivefrom Ekofisk and other fields in the Norwegian and Britishparts of the North Sea at the Teesside terminal – non-stop!

Nick Lee

Teesside central control room. In the foreground are Ross McMillan (left) and Kevan Hunter.


Community relations

Teesside –“the upstream refinery”

TANANGER/TEESSIDE: “The English pupilsalways come here in February, so we busthem to Sirdal valley to take them skiing –cross-country style! Most of them have neverhad skis on their feet,” says Jon Pettersen,vice principal at Tananger lower secondaryschool and in charge of the exchangeprogram with the Northfield School in theTeesside area in north-eastern England.The exchange is supported by

ConocoPhillips, which has major activitieson both sides of the North Sea. Theoperations in the Greater Ekofisk Area aremanaged from Tananger, while oil andnatural gas liquids are received at theterminal in Teesside. This means that manyfamilies in both areas have the sameemployer.“Our task is to create lasting cultural and

linguistic contact, independently of whatConocoPhillips means to people in Tanangerand Teesside,” Pettersen says.

Staying with familiesEvery year, eight students from eighth format the Tananger lower secondary school areselected to travel to the Teesside area for aweek. The trip is in June, but the selectionprocess stars the previous fall. Thecompetition is very popular among thepupils, who must write a personalapplication in English with informationregarding their interests and hobbies, friendsand family. The applicant must also explainwhy she or he would benefit from travelingabroad.During their visit to England, the

Tananger pupils stay with the families of theEnglish exchange students who visitedNorway earlier in the year. Each evening, the

host families organize a social event for allthe exchange pupils. During the day, theytake part in regular lessons as well as doingproject work at school. Two teachers travelwith them, and spend part of their timegaining insight into the British schoolsystem.“The Northfield School is a popular

school with 1,800 pupils, and it is very farahead in terms of natural sciences,technology/design and drama,” Pettersensays.

Friends for lifeThe close partnership between the twolower secondary schools started in 1987,after an initiative by Phillips PetroleumCompany. One teacher from each schoolmet to lay the foundations for the program,and this tradition is kept alive by teachersfrom the schools meeting each year to planthe next exchange.In addition to having a go at cross-

country skiing in Sirdal valley and iceskating in Siddishallen, the English pupilsalso take part in Norwegian folk dancelessons and cooking. This year, the studentsalso visited the Norwegian Oil Museum inStavanger and the Science Centre inSandnes.The friendship between pupils in

Northfield and Tananger go back as long asthe exchange agreement itself. Many ofthose that met as pupils 20 or 25 years agostill visit each other.“Both teachers and pupils have forged

close friendships that have resulted in tripsacross the North Sea for baptisms,weddings, as well as big birthdays, whensomeone turns 50 or 60,” Pettersen says.

Connecting Tanangerand TeessideFor 25 years, lower secondary school pupils have crossed theNorth Sea to forge friendships and learn about each other’scultures.

Pupil exchange Norway-England

Each year, eight pupils from Northfield School inBillingham and eight pupils from Tananger travel toeach other’s country for a one week exchange. Theprogram is sponsored by ConocoPhillips in Norway.The business unit which is managed from theTananger office and includes operations in theGreater Ekofisk Area and the Teesside Terminal innorth-eastern England.

800employees

on site

Learning to ski in Sirdal.

Geoff Marsden (left) withAnthony Healey.

activities around Greenland, in theBarents Sea and the Chukchi Sea betweenAlaska and Russia. The commondenominator for these areas is that theycontain, or are expected to contain, oiland gas reserves.“Through research we gain better

knowledge of the environmental aspectsof activity in these areas. This enables usto recover these resources,” Lindefjeldsays.

More than 40 applicationsLast year, ConocoPhillips invited a broadspectrum of research environments todevelop and present arctic issues. Thechallenges resulted in more than 40project applications ranging from geologyto nano technology. Initially, 11 projectsreceived funding. Five of these are headedfrom UNIS, the University Center atSvalbard.“The program is very much focused on

geology, but we have also funded projectson marine eco systems, glacial calving,micro organisms, communicationsinfrastructure and nano particles toprevent icing of platforms,” Lindefjeldsays. One of the projects will look into the

energy transport from the sun through theouter section of the atmosphere.“This is an exciting project with a

significant portion of basic scientificresearch. It will provide informationregarding the impact of solar energy onthe atmosphere and global climate,”Lindefjeld says. The results from theproject will also contribute to moreaccurate GPS systems in the Arctic.

“There are vast amounts of oil and gas inareas where we so far have lacked thetechnical solutions in order to recoverthese resources,” says Ole Lindefjeld. He isin charge of ConocoPhillips’ research anddevelopment portfolio in Norway, whichincludes everything from operatingchallenges to basic scientific research.Between 2005 and 2011, the company

spent 50 million Norwegian kroner onresearch through an arctic environmentalprogram. Last year, this program wasreplaced by the new northern areasinitiative – with a total frame of 130million kroner. ConocoPhillips’ arcticventure comprises oil and gas fields inAlaska, Northern Canada and Russia. Thecompany is also involved in exploration

Sharing the knowledgeThe research program will yieldknowledge about issues that have not beensubject to research before. This is part ofConocoPhillips’ motivation – bringingfacts into the discussion on energyresources in vulnerable areas north of theArctic Circle. A third of the company’s oiland gas production is from the northernareas.“As long as no one can present facts,

there’s a free for all in terms of makingstatements. This is why we want to beproactive and obtain factual knowledge onimportant issues,” Lindefjeld says.When the results are ready within thecoming three to four years, researcherswill publish their findings in scientificpublications. The knowledge is then madeavailable to everybody. ConocoPhillipsencourages research environments tocooperate with other researchers andfunding institutions to increase ourknowledge of the Arctic.


Research & development

Investing in northern areas research programOne third of ConocoPhillips’ global production takes placenorth of the Arctic Circle. The company’s arctic researchprogram provides knowledge regarding everything from arcticgeology to marine eco-systems and glaciers.

ARCTIC RESEARCH: ConocoPhillips wants to increaseknowledge to strengthen sound exploration andproduction activities in the northern areas.

Ole Lindefjell

ConocoPhillips’ arctic research programResearch and development program with aframework of 130 million Norwegian kroner for theperiod from 2012 to 2016. Seeks answers tooperating issues and environmental uncertainty.

Four focus areas:

• The hydrocarbon potential in the Barents Sea.

• Operating aspects in the northern areas.

• Biological patterns as well as environmentalimpact on glaciers.

• Energy transport from the sun.

Participating research environments include theUniversity at Svalbard (UNIS), Akvaplan Niva, SINTEF,MARINTEK, Teknova and International ResearchInstitute of Stavanger (IRIS).

North America, Europe, Asia andAustralia. In addition, the company has anincreased focus on production from shaleand oil sands in North America, manyinternational development projects and aglobal exploration program in its portfolio.

ConocoPhillips is today one of the world’slargest independent exploration andproduction companies. The size and scopeof the company enables it to successfullycompete across the world. ConocoPhillipsproduces oil and gas from legacy assets in

The company benefits from more thana century of experience. It has a presenceand capability in key technology-drivenresource opportunities globally. Amongthese are conventional andunconventional reservoirs, oil sands andheavy-oil deposits, liquefied natural gas,and deepwater and Arctic operations.When the company now continues tobuild on its current strong position, thevision is to continue to be a pioneer for anew standard of excellence in explorationand production.

ConocoPhillips has always placedhealth, safety and environmentalstewardship first. In addition, thecompany has an unprecedentedopportunity to unlock potential bycombining experience, asset base,technical capability and financial capacitywith the focus and culture of anindependent company. This enables us tocreate value for all stakeholders, anddeliver a compelling formula of profitablegrowth, strong financial returns and asector-leading dividend.


Corporate

ConocoPhillips – a leading energy companyOn 1 May 2012, ConocoPhillips carried out a repositioning ofthe company. The “new” ConocoPhillips is a pure-playupstream company – while the downstream businesscontinues in a new company named Phillips 66.

Headquartered in Houston, Texas, ConocoPhillips has operations andactivities in 30 countries and approximately 16,500 employees as of June 30,2012. Production averaged 1.59 million BOE per day for the six months endedJune 30, 2012, and proved reserves were 8.4 billion BOE as of Dec. 31, 2011.

The European activities are headed from the regional office in Stavanger,Norway.

ConocoPhillips’ headquarters in Houston, Texas.

More understandingThis spring, Jette Ås Harbo and her fellowpupils who take geo subjects visitedConocoPhillips. The visit and ademonstration there whetted her appetitefor the subject.“Through geology I’ve gained a greater

understanding of how the earth works,and how rocks can contain energysources,” says Jette Ås Harbo. The visit toTananger inspired her to continue to studygeology.“The subject tells us a lot about

renewable energy sources, climate andnatural phenomena, so that we canunderstand how landscapes were formed,”she says.

Means more scienceThe six students we met at Sandnes UpperSecondary School right before summervacation, have physics and mathematicsamong their subjects, in addition to geosubjects, chemistry, IT and English.Kristian Rosland studies third level physicsand he was very interested in theconnection between land and offshorefacilities ahead of the visit to Tananger.“I thought it was very relevant to see

the working environment, the dataresources, the equipment and theconnection between land and theplatforms in the North Sea,” he says.According to Bente Espedal, who

heads the science department at theschool, the company visits have a majorinfluence on what the pupils decide tostudy later.“We’ve carried out surveys afterwards,

and 80-90 percent of the final year pupilsrespond that the visit influenced theirchoice to study sciences after uppersecondary school,” says Bente Espedal.

IT, physics and electroMarie Wik Skadberg is studying third levelphysics. She also does maths and English.“My plan is to either become a drillingengineer or do my master’s in energy andenvironment at the Norwegian Universityof Science and Technology (NTNU).ConocoPhillips is definitely a place I couldsee myself working in the future,” MarieWik Skadberg says after the visit.“It was great to see how the oil industry

is run, and my visit to ConocoPhillips mademe even surer about the education I havechosen,” says Knut Erland, who does ITsubjects and physics. His plan is to becomean electrical engineer.Anders Svihus does geo subjects and

chemistry in addition to maths and physics.

His plan is to become a petroleumengineer.“My impression after the visit is that

ConocoPhillips is an exciting place towork,” Svihus says.

Every year, ConocoPhillips invites sciencestudents from Sandnes Upper SecondarySchool to come and see how the companyworks. They get to meet recent graduateswho tell them about their own educationalchoices, and what it is like to work in amajor operating company. During the fallterm, geo subject students in their secondyear come to learn what geologists andgeo physicists do and what tools they use,and in the spring, physics students in theirfinal year visit to be inspired to takefurther science education. In Tananger,the pupils get a little taste of drilling andwell planning at the company’s onshoredrilling centre.“Technology and software

programming are changing fast, and wereceive students from secondary schoolsand universities to show them how thedisciplines develop,” says HenningLillejord. He is the IT project lead behindsome of the computer tools used forConocoPhillips’ integrated operations.


Community relations

Visiting to learn about scienceSeeing how ConocoPhillips works has made it easier for manyyoung students to choose the sciences.

INSPIRATION: Students from Sandnes UpperSecondary School visited ConocoPhillips this

spring. From left: Ingrid Wik Hallaråker, Jette ÅsHarbo, Kristian Rosland, Knut Erland, Anders

Svihus, science department head Bente Espedaland Marie Wik Skadberg.

OPTING FOR THE SCIENCES: From left: Kristian Rosland, Jette Ås Harbo, Ingrid WikHallaråker, Knut Erland, Marie Wik Skadberg and Anders Svihus have visitedConocoPhillips and become more sure they want to study the sciences.

Bente Espedal

School and student visits

Sandnes Upper Secondary School andConocoPhillips have for many years been coopera-ting to provide students with a greater insight intoworking life. The goal is to help them make betterand more realistic choices concerning educationand careers. The students who visit ConocoPhillips’head office at Tananger each fall and spring get tosee integrated operations in practice at the compa-ny’s drilling centre, which is open 24/7. Between 80and 90 percent of the students say that the visitinfluences their choice of education. The companyalso receives engineering students from theUniversity of Stavanger, among others.

Their repertoire includes everythingfrom marches and film scores to piecescomposed especially for this sort of band.During our visit to a Tuesday practicesession before the summer, we weretreated to a perfect play-through of thetheme from Copacabana, conducted instyle by Geir Illguth. The instrumentswere tuba, percussion, xylophone, a fewclarinets, trombone, saxophone, horn andtrumpets.

Hildegunn Landa is a geophysicist andworks as a well planner in ConocoPhillipsin Tananger. She also plays the baritonesaxophone in the company’s very ownmarching band, a band with wood players,brass players and percussion. She joinedthe band after her first Christmas inConocoPhillips, after hearing the bandplaying carols in the reception area on 23December.“I’ve been in marching bands since my

school days, so I got in touch, and I didn’teven have to audition to join,” Landa says.The ConocoPhillips Janissary Band

started 30 years ago as a social activity forthe employees and their families. As itturned out, the company was teemingwith musical talent and enthusiasm. Bandpractices usually see between 15 and 25people turn up.

Want more“Anybody who has played in a schoolmarching band is welcome to join. We canhelp out with instruments,” says trumpetplayer and offshore installation managerArild Kleven. He has been in the band foralmost 23 years, and has no plans to quit.He is not unique in this. In fact, three ofthe current members have been in theband since its inception in 1981. Othershave continued to play in theConocoPhillips janissary band afterretiring or leaving the company.“The band members are almost more

loyal to the band than to their employer,”jokes Kleven.

“Our conductor is very good, and thelevel is high enough so that we soundgood, and we can be very proud ofourselves,” says Arild Kleven andHildegunn Landa.

Seminars and concertsWhen the ConocoPhillips Janissary Bandplays in public, the members and theconductor dress in ‘uniform’; orangeboiler suits and white helmets with thecompany name and logo. These specialuniforms attract a lot of attention duringthe Constitution Day parade in Stavanger.“We’re very visible, and when I talk

about the band in other situations, it isenough to say that we’re the ones that play

in boiler suits on Constitution Day. Peopleinstantly know who we are,” HildegunnLanda says with a smile.Last year, the band traveled to Riga,

Latvia, where they played in the Old City.Every year, the band has two seminarweekends, and in-between they performduring celebrations and anniversaries.During the 30th anniversary of theAlexander L. Kielland disaster, the bandplayed Spring by Edvard Grieg, aperformance which was warmly received.“The ConocoPhillips Janissary Band

has many functions in our company, andwe are very pleased to help promote thecompany in such a positive manner,” saysKleven.


Spreading joy

The band marches on ConocoPhillips has its very own marching band. It is a verypopular part of Stavanger’s Constitution Day parade – andhelps spread the joy through its performances.

Happy musicians outside the ConocoPhillips office.

The ConocoPhillips Janissary band playing outside the Norwegian oil museum in Stavanger.

is one of the world’s largest independent E&P companies with operations in almost 30 countries. Our headquarters are located in Houston, Texas.

INTERACTIONis our strength

Looking ahead – and looking northwards.

ConocoPhillips is one of the world’s largest independent E&P companies with operations and activities in 30 countries. Our headquarters are located in Houston, Texas.Operations in Norway are led from the company’s offices in Tananger outside Stavanger. ConocoPhillips is one of the largest foreign operators on the Norwegiancontinental shelf. The company is the operator of the fields in the Greater Ekofisk Area, and has ownership interests in fields such as Heidrun, Visund, Oseberg,

Grane, Troll, Alvheim and Huldra.

More than 40 years ago, Norway’s first oil production began– from the Ekofisk field. So far, around 1,858 billion Norwegiankroner’s worth of value creation has been generated from thisand other fields in the Greater Ekofisk Area. Now we areinvesting in further development of these fields – and preparingfor the next 40 years.

Looking ahead – and looking northwards. We have ambitions of growth on the Norwegian continental shelf and to remain a key player.

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Pioner - CP 2012