Transcript Document
UPSTREAM EUROPE – STEPPING UP THE PACE IN THE NORWEGIAN SEA TOM BOTTS EXECUTIVE VICE PRESIDENT – EXPLORATION & PRODUCTION EUROPE Desemberkonferansen 2007 6th DECEMBER 2007 AGENDA • Shell EP Global Strategy • Shell’s European Activities • Stepping up the pace in the Norwegian Sea 1 SHELL E&P, LEVERAGING A STRONG PORTFOLIO … SHELL STRATEGY INDUSTRY LANDSCAPE Higher prices & costs PORTFOLIO SHIFT • New legacy assets • Growth markets East New competitors ENERGY CHALLENGE TECHNOLOGY • Unconventionals + exploration • Cleaner fuels, CO2 solutions Complex projects 2 SHELL IN UPSTREAM EUROPE UPSTREAM EUROPE CAPITAL EXPENDITURE 11% ($2.6 bn) EUROPE REST OF THE WORLD OIL & GAS PRODUCTION 32% (1.1 m boe/d) 2007 Shell activities 3 STRONG POSITION TRACK RECORD PRODUCTION kboe/d 1400 Enterprise 1200 Draugen 1000 •Strong and diverse portfolio 800 •Industry development leader Brent 600 NL Offshore •Growth and mature assets 400 Groningen 200 0 55 4 60 65 70 75 UK NETHERLANDS NORWAY DENMARK 80 85 90 95 '0 0 GERMANY, ITALY, AUSTRIA Actual data up to end 2006 '0 5 ADVANTAGED UPSTREAM PORTFOLIO NORWAY UK Clair Shearwater Schiehallion Nelson S North Sea Gas Ormen Lange Draugen Gjøa Troll Statfjord Valhall •Strong and diverse portfolio •Infrastructure advantage DENMARK Dan Halfdan IRELAND Corrib NETHERLANDS GERMANY Groningen Onshore gas Offshore gas OIL & GAS GAS 5 Onshore gas ITALY Tempa Rossa Val d’Agri •Reputation and performance SHELL TECHNOLOGIES ADD VALUE 6 ORMEN LANGE – A LEGACY ASSET IN THE GLOBAL SHELL PORTFOLIO Ormen Lange fits perfectly into Shell’s growth strategy: • More gas • Growth in Norway • Technology, Integration and Scale 7 ORMEN LANGE - FUTURE CHALLENGES Phase 2: Big investments ahead Still a very technologically challenging project Future gas compression – requires new technology Operational experience will influence future activity level WEST NAVIGATOR DRILLSHIP 8 BUSINESS DEVELOPMENT EXPLORATION POTENTIAL IN EUROPE •Growth in Norway ATLANTIC MARGIN Onyx SW •20th Round coming up •Onyx development UKRAINE NETHERLANDS FRANCE ITALY 9 FOCUSED EXPLORATION NEW ACREAGE BIG CAT DISCOVERY LNG REGAS OPTION EXPLORATION DRILLING CAMPAIGN ATLANTIC MARGIN – NORWAY FOCUS • Extensive drilling campaign starting 2008 • 20th Round evaluation started • Exploiting new technology to increase success rate OPERATED WELLS NON-OPERATED WELLS 10 LOFOTEN AND VESTERÅLEN, A POSSIBLE FUTURE OIL AND GAS PROVINCE • Seismic indicates possibilities • Equal reservoirs to North Sea and Norwegian Sea • Environmental sensitive, coexistence with fisheries a prerequisite • Important to start exploring • High uncertainty • Avoid decline of competence 11 DRAUGEN - OPERATIONAL EXCELLENCE • Showcase Asset for mature operations • Integrated operations • Uptime of 97% • Synergies with Ormen Lange Draugen 12 13 14