Statoil subsea challenges – Older, longer, deeper, colder

SUBSEA UK, Lunch and Learn, 22 January 2014 Bjorn A. Egerdahl Advisor Subsea Production Systems 22.01.14 Classification: Open

2 Classification: Internal

Build material positions in 3-5 new offshore business clusters* Longer, deeper, colder and older

Security Classification: Restricted - Status: Final

*Cluster = area with potential production of > 200 000 BPD Statoil equity

Statoil subsea project portfolio

Security Classification: Internal - Status: Draft

Older 521 wells get one day older every day

Classification: Internal 2013-02-15

5 Security Classification: Internal - Status: Draft

Preventive

Corrective

Num

ber o

f fai

lure

Life time

Older Fast-track development of subsea tie-backs

Simplify process and project set-up

1

Clustering of projects

2

Selection of standard concept

3

Strengthen commercial mindset and focus on fast delivery

4

Fast track / standard subea projects Contracts to date

Contract #1: Visund Sør, Vigdis Nordøst, Hyme, Stjerne, Visund Nord

Contract #3: Gullfaks Sør Omega, Oseberg Delta 2, Gullfaks Rimfaksdalen, 2 open options

Contract #2: Skuld, Vilje Sør, Svalin C

Classification: Internal 2013-08-20 7

8

Standardisation

9

Subsea production systems Standardized and configurable

• System is configured to field spesific requirements

• Building blocks are standard – but configured as required to meet field requirements, i.e reservoir conditions, seabed conditions and host platform characteristics

Classification: Internal 2013-08-20

System configurations Building blocks Oil production Oil production w/gas lift Gas production Gas injection Water injection Combinations of above

4 slot templates Single slot templates (satellites) Wellhead Tubing Hanger Xmas Tree Choke Module Manifold Production Control System Tie-in tool (normally rented)

Standard universal workover system

• For well completion and workover

• Can be used on subsea trees from both Aker and FMC – in future also GE and OneSubsea

• First contract won by Aker

• Equipment for 5 parallell rig operations being delivered and taken into use late 2013 / 2014

Classification: Internal 2013-08-20 1

11 - Classification: Internal 2011-09-12

Umbilical – standards for static and dynamic applications

First tender won by Nexans – call-offs up to 50 km total

12

Leading in seismic imaging and interpretation to increase discovery and recovery Contribute to add quality prospects in areas with complex geology

Become a leading exploration company

Pushing reservoir characterisation and recovery to the next level to maximise value Enable faster maturation of resources & reserves

Contribute to add 1.5 bn boe to reserves by 2020

Step change in well-construction efficiency to drill more cost-efficient wells 30% reduction in well construction time and 15% in well construction cost by 2020

Taking subsea longer, deeper and colder to accelerate and increase production Simplification and standardisation Flexible Subsea tie-backs Realise subsea compression by 2015 and complete subsea factory by 2020.

Subsea Factory in a Technology Strategy context

Existing Subsea Toolbox within Statoil

Classification: Internal 2013-02-15

13 Security Classification: Internal - Status: Draft

Gullfaks Compression

• DG3: May 2012

• Inc. recovery: 22 mill boe

Åsgard Compression

• DG3: Aug 2011

• Inc. recovery: 280 mill boe

Subsea Factory

• Realise by 2020 • Towards 60% recovery • Improved CAPEX OPEX HSE

Troll Water Separation

• Installed 1999 • 10 000 bopd

Tordis Separation and boosting

• Installed 2007 • Designed to increase oil

recovery from 49% to 55%

Tyrihans Sea water injection

• Installed 2009 • Design: 10% increase

in total recovery

Lufeng Multiphase pumping

• Installed 1997 • 12 years in operation • Enabler for FD

Subsea large share of production: • 521 subsea wells • 40% of Statoil operated NCS prod • 50% of equity prod

Significant yearly subsea spend (2012): • 13.4 BNOK CAPEX • 10.1 BNOK OPEX

Classification: Internal 2013-05-23

14 Security Classification: Internal - Status: Draft

Oil storage

Gas compression

Gas, oil, produced water separation

Power distribution and control

Manifold

Sea water injection template with pumping

Produced water injection template

Production template Produced water

injection pump Production template

ROV intervention

Oil pump

Oil export

Gas export

The Statoil Subsea Factory™

14

Commercially available

Tyrihans Qualification

ongoing Lufeng / Tordis

Gullfaks / Aasgard

Qualification – Ormen Lange

Tordis

Tordis

Commercially available

Commercially available

Commercially available

Commercially available

ARCTIC FACTORY

HEAVY OIL FACTORY

DEEP WATER FACTORY

EXTENDED REACH FACTORY

COMPACT SEPARATION

DEEPER INSTALLATION &

IMR

ARTIFICIAL LIFT ESP & DUAL

BOOST

SEA WATER INJECTION

SUBSEA FIELD CENTRE

GAS TREATMENT

HIGH VISCOSITY BOOSTING

OIL STORAGE & OFFLOADING OIL TREATMENT

INTERVENTION SIMPLIFIED COMPRESSION

POWER DISTRIBUTION

SIMPLIFIED BOOSTING

WATER SEPARATION & INJECTION

LONG DISTANCE OIL TRANSPORT

HIGH CAPACITY BOOSTING

Subsea Factory Menu – Key technology elements

SUBSEA-TO-HOST FACTORY

BROWNFIELD FACTORY

Statoil subsea challenges – Older, longer, deeper, colder

Bjorn A. Egerdahl Advisor Subsea Production Systems E-mail address BAE@statoil.com Tel: +4790079954 www.statoil.com

22.01.2014 16 Classification: Open