Transcript Visit by British Supply Industry group

Presentation of Statoil ASA
UK Norway Share fair 2006
Aberdeen, Scotland, 20th April 2006
2
Statoil in brief
• Statoil is an integrated oil and gas company with activities in 33 countries
(exploration and production in 15 of these)
• At 31 December 2005 Statoil had 25,644 employees, and 49 percent work
outside Norway
• Statoil operates 24 oil and gas fields on the Norwegian continental shelf and
accounts for 60 percent of all Norwegian petroleum production. As operator for
23 seabed facilities, Statoil is a leader in sub sea production
• International production is growing strongly
• We are one of the world’s largest sellers of crude oil and a substantial supplier
of natural gas to the European market
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Statoil – highlights in 2005
• Statoil’s total revenues came to NOK 393 billion
• Net income was 30,7 billion – the best ever in Statoil’s history
• Extensive acquisitions of fields and exploration licences in the Gulf of
Mexico, with first field development initiated
• New vigour on the Norwegian continental shelf
– Technical innovation
– 12 new developments
– 9 discoveries
– 16 new licences awarded
• Record-high reserve replacement ratio
4
Corporate executive committee
Helge Lund
President and CEO
Terje Overvik
Exploration & Production
Norway
Peter Mellbye
International Exploration
& Production
Eldar Sætre
Chief financial officer
Rune Bjørnson
Natural Gas
Nina Udnes
Tronstad
Health, safety and
the environment
Jon Arnt Jacobsen
Manufacturing &
Marketing
Jens R Jenssen
Human resources
Margareth Øvrum
Technology &
Projects
Reidar Gjærum
Corporate
communication
5
Core areas on the NCS
Harstad
Halten/Nordland
Growth area
Tampen
Matured area
Stjørdal
Bergen
Troll/Sleipner
Gas machine
Core areas
Stavanger
Offices
Fields operated
by Statoil
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Core area:
Troll/Sleipner
• “Main engines” in the
Norwegian gas machine
• Provide 63 per cent of
Statoil’s gas production
• Contain 52 per cent of
Statoil’s gas reserves
The Sleipner A integrated production, drilling and quarters platform is
linked by a bridge to the Sleipner T gas treatment installation
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Core areas:
Tampen
– Statfjord, Gullfaks, Snorre, Visund, Kvitebjørn
Embraces the oldest and largest
fields
Challenges:
• Improve oil recovery
• Extend producing life
• Coordinate and enhance
efficiency
A new shift arrives on the Statfjord A platform while
another goes home.
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Core areas:
Halten/Nordland
– Heidrun, Åsgard, Norne, Kristin
New solutions:
• Production ships
• Floating platforms
• Extensive use of subsea
installations
• New developments in deep
water
• A new gas province
Åsgard A is one of the world’s largest production ships.
Its capacity is enough to meet all Norway’s oil needs.
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Snøhvit
• Statoil will become a
player in the market
for liquefied
natural gas (LNG)
• An environmental
project without
harmful discharges
• No surface installations
on the field
• Carbon dioxide storage
beneath the seabed
The LNG plant on Melkøya, a few kilometres from Hammerfest.
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Snøhvit
Gas transport and terminals
Melkøya
• Export pipelines to Germany,
Belgium, France and the UK
Norne
Åsgard
Kristin
• High regularity and
great flexibility
• Statoil is technical
ÅTS
Ormen Lange
Statfjord
Frigg
operator for 6,000km
of pipeline
Heidrun
Vesterled
Sleipner
St Fergus
Ekofisk
Haltenpipe
Nyhamna
Troll
Kollsnes
Kårstø
Europipe II
Europipe I
Langeled
Teesside
Norpipe
Zeepipe I
Franpipe
Emden
Easington
Zeebrugge
Dunkerque
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Corporate executive committee
Helge Lund
President and CEO
Terje Overvik
Exploration & Production
Norway
Peter Mellbye
International Exploration
& Production
Eldar Sætre
Chief financial officer
Rune Bjørnson
Natural Gas
Nina Udnes
Tronstad
Health, safety and
the environment
Jon Arnt Jacobsen
Manufacturing &
Marketing
Jens R Jenssen
Human resources
Margareth Øvrum
Technology &
Projects
Reidar Gjærum
Corporate
communication
12
Procurement & supplier relations
CPO
Drilling & well
•HR
•Rig strategy
•HSE
•BPP initiative
Steel
Constructions
Key supplier
Corporate
and
Relations
Procurement
modifications
Market analysis
support services
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Procurement in Statoil – We strive to
• secure best value for money through optimal utilization of in-house
and supplier resources to provide products and services with the right
quality delivered on-time
• meet HSE standards and objectives in work performed by our suppliers
• engage suppliers who share our values and apply guidelines ensuring a
reputation of high ethical standard, integrity and social responsibility
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Procurement in Statoil – How we work (1)
• Strategic sourcing
– Develop, integrate and implement sourcing strategies, with “One
Statoil” in mind, through a category approach to goods and
services based on aggregated demand management, the global
market situation and robust analysis to minimize execution risk
– Base procurement on competitive bidding, taking into account the
principles of transparency, non-discrimination and equal treatment
of bidders
– Address country specific requirements affecting procurement
together with cultural and ethical issues
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Procurement in Statoil – How we work (2)
• Segregation of duties, Compliance and Control
– Line management is responsible for demand planning, allocation of
technical and operational competence, for budgets and approval of
recommended suppliers
– Procurement entities are responsible for pro-active demand coordination,
planning and execution of procurement on behalf of line management to
commit Statoil towards the supplier in accordance with delegation from the
CPO
– Support cost effective procurement through simple and standardized tools,
systems and work processes securing quality, efficiency, spend
transparency and appropriate automation
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Statoil Group Procurement 1996-2005
Yearly spend (NOK Bn)
44,4
35
1996
1997
62,8
62,8
2004
2005
50,5
41,9
1998
33,7
30,7
1999
2000
36,9
26,8
2001
2002
Committed Value
* Invoiced Value 2003 does not include commitments without Purchase Orders
2003*
Invoiced Value
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Statoil Group Procurement 2005
Spend per Product/Service Area
Unclassified
11 %
Ops., Mod.,
Maint.
12 %
R&D
1%
Project
Development
46 %
Administrative
13 %
Drilling&Well
17 %
Total Procurement: 62,8 NOK Bn
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The project development process
Operation
Project planning
Feasibility
Concept
Project execution
Pre-engineering Detail engineering
Construction
Completion
-Business idea
-Exploration
AP 1
AP 2
IPR 1
DG 0
DG 1
Feasibility
(BoK)
New Major Pipelines
10 %
IPR 2
IPR 3
DG 2
DG 3
DG 4
(BoV)
(BoG)
(BoD)
Stand Alone
35 %
Norway:
•Shift in portfolio to increased focus on
Modification/tie-in and revamp
Modifications /
Tie-ins
42%
Onshore
New Build
7%
Onshore
Modification
10 %
0PR
•Still large Projects in the funnel
Graf
Concept Engineering (DG2)
SOL Projects
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Sanction
Field Location
Project Type
Mongstad PQP Fase 2
Dec 2006
Mongstad
Mod.
SFC WI to Vigdis / Snorre
Jun 2006
Statfjord, Vigdis
Mod., Pipeline
Alve
Oct 2006
Alve, Norne
Mod., Subsea
GJØA w/ Camilla Belinda
Nov 2006
Gjøa, Gullfaks
Semi, Subsea, Well
Snorre / Vigdis IOR
Dec 2006
Vigdis
Mod., Module
Dagny
Dec 2006
Troll, Sleipner
Mod., Subsea, Well
Alpha Sør
Dec 2006
Troll, Sleipner
Subsea, Tie-in, Well
Snorre B IOR Topside
Dec 2006
Vigdis
Mod. , Module
Kårstø Modifications
Apr 2007
Kårstø Refinery
Mod.
Etan Dornum
Aug 2007
Dornum
Etan/CO2 Plant
Gudrun
Jan 2008
Gudrun, Sigrun, Sleipner
Stand Alone
Troll Future Development
May 2008
Troll, Sleipner
Heidrun Gas Injection
Jul 2008
Heidrun
Mod. , Module
Valemon
Oct 2008
Valemon, Kvitebjørn
Mod., Subsea, Well
Mod. Troll A, Kolsnes
Extension, New Pipeline
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Gjøa Field Development
ÅTS
Langeled
Camilla&Belinda Gjøa
Tampen
Kvitebjørn
Gjøa recoverable reserves:
• Gas
39 GSm3
• Oil/condensate
10 MSm3
Gjøa licence partners:
Valemon
• Statoil
Huldra
(Development operator): 20 %
Hild
Oseberg
Oseberg
Troll
• Gaz de France Norway
(Operations operator):
30 %
• Petoro:
30 %
• Shell:
12 %
• RWE Dea:
8%
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Gjøa and CBB Field Development Concept
GJØA SEMI
WELLS
RICH GAS/STAB. OIL
EXPORT
Gas
Umbilical
Gas 10”
Oil 10”
Lift gas 6”
7 km
22 – 28”” 130 km
PIPELINE
GJØA
NORTH
Umbilical
Gas 12”
Oil 12”
Lift gas 6”
Oil
GJØA
SOUTH
4 km
16” OD, 60 km
PIPELINE
Umbilical
Gas 14”
50 km
CAMILLA
BELINDA
FRAM B
EL. POWER FROM
MONGSTAD, 100 km
GAS
OIL
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Gjøa subsea layout
D
Gas 10” ID for E and D
12” ID for B
CRA steel
3.4 km
Oil 10” ID for E
12” ID for B
SEMI
C&B
CRA steel
A
7.2 km
E
Gas Lift 6” carbon steel
Umbilical
4.4 km
B
C
Power cable
Oil export
UTM coordinates:
SEMI
6804200/548000
Template B & C
6801300/551300
Sat D 1 slot
6806200/552700
Template E 6803900/555200
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Infrastructures in the Troll area
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West 25 Concepts
Heimdal
Troll B
St.Fergus
Miller
•
Troll B to Vesterled sub-sea
–
Gassled Area D reinforcement by ZP
IIA – Miller
Sleipner
•
Troll B to HRP and split between
FUKA and Vesterled
–
Teesside
Gassled Area D reinforcement by ZP
IIA – CATS
•
Troll B direct to Miller
•
Troll B direct to St Fergus
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East 30 & 40 Concepts
St.Fergus
Kollsnes
Miller
9.
Kollsnes direct to Miller
10. Kollsnes direct to St Fergus
11. Kollsnes direct to
Zeebrugge
12. Kollsnes direct to Den
Helder
Zeebrugge
Den Helder
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Troll Future Development
Pipeline alternatives from
Kollsnes
• Direct to Zeebrugge (1050 km)

42” pipeline with a capacity of 57
MSm³/d
• Direct to Den Helder (870 km)

42” pipeline with a capacity of 60
MSm³/d
• Direct to St.Fergus (500 km)
 40 MSm³/d (32”)
 65 MSm³/d (38”)
• Via Miller to St.Fergus (285
km)
 Depending available spare
capacity
28” – 34”

 Third line Troll A to Kollsnes
(65 km)
 36” (landfall section pre-installed)
Kårstø Developments 2006-2015
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Kårstø, key processing unit oil and gas production from
Norwegian Continental Shelf
Draugen
Heidrun
Mikkel
Norne
Åsgard
Kristin
Skarv 2010
Brage, Gullfaks,
Jotun, Balder,
Snorre, Statfjord
Sygna, Tordis,
Veslefrikk,
Vigdis, Visund
New Tampen vol?
Sleipner Vest
Sleipner Øst
Gungne
Sigyn
Åsgard
rich gas
Statpipe
Sales gas
Draupner
Statpipe
Rich gas
Sleipner
Condensate
Dornum
Europipe II
Sales gas
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Kårstø Master plan
Modernise the Kårstø plant to:
•Improve technical integrity
New business opportunities:
•New fields/volumes
•Increased capacity utilisation
Previous Kårstø developments
Statpipe 85, Sleipner 93/96,
Åsgard 00, Mikkel 03, KEP 05
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Status and Way forward
• Kårstø has a significant project portfolio ahead:
– High activity within maintenance and modifications
– Significant project portfolio
– Total investments in the next 10 years may be 9 – 10 GNOK
• Maintenance and modification portfolio to be executed within Operation
• Project portfolio to be executed in two phases
– Phase 1, Completion by 2010/2011 (5 GNOK)
– Phase 2, Completion by 2013-2015
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New solutions - new waters
New technology has opened for northern activity
History
Future
Arctic E&P
Environmental
technology
Ultra
Deepwater
Snøhvit LNG
Troll 1995
Åsgard 1999
Statpipe 1985
Statfjord 1979
18
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Significant opportunities in frontier areas
• Barents Sea
– Four wells, where two are Statoil-
operated: Uranus and Guovca
– No commercial discoveries in
Obelix and Guovca
• Norwegian Sea; deep water
– Three Statoil-operated wells
– Small gas discovery in Tulipan
wildcat
• North Sea
– Kogge wildcat in southern North
Sea
• Significant yet-to-find potential
– 28 Gboe undiscovered on the NCS
Uranus
Obelix
Guovca
Goliath
Total*
4,2
4,0
16,8
Edvarda
Midnattsol
Tulipan
9,8
4,9
11,5
2,8
2,6
Oil
* Undiscovered resources (Bn bbl. o.e.)
Source: Statoil
Kogge
Gas
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Long term visions for the Barents Sea
Industrial options we are working towards
Emden
Short term (2012)
•
Snøhvit I & II
•
Pechora olje
•
NEGP
•
Shtokman I
•
Area F & G
Zeebrugge
Kårstø
Kollsnes
Nyhamna
Medium term (2020)
•
Barents West piped gas
•
Shtokman II
Long term (2020+)
Åsgard
Murmansk
•
Shtokman III
•
Pipeline gas to Europe
Kirkenes
Tromsø
Melkøya
Snøhvit I&II
Area G Area F
Barents West
Shtokman
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Summary
• Still a significant number of possible new projects, but
– cost level is increasing significantly (CAPEX/bbl)
– lack of capacity
• High focus on continued development of the Norwegian shelf
– Increased oil and gas recovery
– Smaller field development and satellites
– More complicated/challenging reservoirs
• A number of projects require modification on existing infrastructure
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Thank you!
[email protected]