Transcript The Norwegian Petroleum Cluster – the role of Statoil

The Norwegian Petroleum Cluster
– the role of Statoil
Øystein A. Håland, Development & Production Norway
Ministry of Foreign Affairs, Mexico City, October 15 2014
2
1965
1st License Round
• Only 1 participating Norwegian
company (Norsk Hydro)
• All licenses to foreign operators
• No Statoil
• Shipping and fisheries – no
petroleum supplier industry
• 4 years later ConocoPhillips
strikes oil at Ekofisk!
3
2014
• ~50 E&P companies
• ~10 Norwegian E&P companies
• Statoil largest operator
• Norwegian supplier industry with global footprint
• Workforce: ~250,000
4
SUCCESS FACTORS
How did we get here?
Political premise and
policy framework
Industry competition
and collaboration
Supplier development
Long-term perspective
Openness and collaboration
Driven by business needs
The power of possible
5
Research,
development and
innovation (RD&I)
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
• They want to benefit
• Some of them may work for
the industry
• Some are fishermen,
concerned about the
impacts on the environment
• All want a better future for
their children and
grandchildren
6
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Clear premise and policies
• Focus on
• National resource management
• Building competencies and skills
• Developing a competitive national
supplier industry
• Environmental stewardship
• Stable and predictable regulatory regime
• Regulations and incentives to promote a
national petroleum industry
7
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Competition & collaboration
Focus on
• Attracting international skills &
technology
• Incentives to collaborate, share
experiences, transfer technologies
• Strategic use of field
developments to stimulate
collaboration and learning
8
Development Operation
Ekofisk
Statfjord
Gullfaks
Troll
Ormen Lange
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Bay du Nord
Canada
Statoil’s journey
International Expansion
Peregrino
Brazil
US Gulf of
Mexico
Operator
Middle East
2009
2013
Angola
Learning
Operator
Gullfaks
Operator
Oseberg
2011
2004-5
Statfjord
partner
1999
Statoil
created
1991
1982
1981
1974
1972
9
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
2014 snapshot:
Statoil on the NCS
Reserves and production
Statoil shares on the NCS
• Operator of 42 oil and gas fields
• A far-reaching enterprise with
• 36 surface installations
• 500 subsea wells
60
5
48
4
3.7
36
3
2.5
• 5 onshore terminals
24
• 9000 offshore employees
12
• 5,000 offshore beds
10
Remaining recoverable resources (bn boe)
Production (mmboe/d)
2
1.2
0
1
0
Total NCS
volumes
Statoil
operated
volumes
Statoil equity
volumes
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Supplier development
- The Norwegian experience
Company initiatives
Government initiatives
• Initial preference for Norwegian suppliers
• Phased licensing/field development to
match supplier capacity
• Focus on development of regional clusters
Total Suppliers
0
11
5
• Encourage supplier partnerships
(Norwegian-international)
• Support establishment of joint
qualification system for suppliers
Norwegian Suppliers
10
15
Years after start of the Norwegian sector
• Contract strategies to increase
national content
20
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Statoil’s approach: creating lasting value
• Contribute to local development
through investment, procurement
and capacity building
• Local supplier mapping and
development / local industry
incubators
• Workforce development / local
education / higher education &
research
12
Yearly procurement spend (BNOK)
180
160
43
140
120
37
34
100
80
60
40
113
100
127
20
0
2011
2012
Norway
International
2013
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Applying innovation with a commitment to sharing
100%
50%
0%
Industry
Industry
Statoil
Statoil
Conventional technology
Substantial innovation
Moderate innovation
Source: IPA benchmarking study; Statoil.
13
2015: Åsgard subsea compression
Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Public research, development
and innovation (RD&I)
Key focus areas:
• Develop independent expertise
• Strengthen Norwegian competitiveness
• Safety and environmental protection
• Increased oil recovery (IOR)
R&D incentives:
• Fiscal incentives (no tax on R&D costs)
• Required NCS license R&D (2%)
• ‘Goodwill agreements’
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Political premise & policy framework | Industry competition & collaboration | Supplier development | RDI
Statoil’s approach to RDI: Academia and beyond
Primary
school
Middle
school
High
school
Pre school
Science, technology, engineering
and mathematics (STEM)
15
University
Academia
R&D Portfolio
Driven by business needs
Financial commitment (2013-15)
• Stimulating a strong Norwegian Petroleum
cluster through RD&I
• Accessing world class research
• Securing long term recruitment
• 72.5 million NOK on 8 universities /
research centers in Norway
• 12.5 million NOK on 4 universities /
research centers internationally
Statoil’s international approach
• Share our NOC heritage
• Build strong partnerships
• Develop people
• Share technology
• Understand and respect
local agenda
16
Possible considerations for Mexico
Opportunities
Strong starting point
• 100+ years of E&P experience
• Stable and predictable framework
• Strong skills base & globally competitive
manufacturing / aerospace clusters
• Attract competition, technologies, capital
• Significant momentum of energy reform
• Promote collaboration, partnerships, transfer of
skills and technology
• Incentivize investments in RD&I
Long-term perspective
Openness and collaboration
Driven by business needs
The power of possible
17
• They want to benefit – jobs, better
conditions, improved standards of
living
• Some of them may work for the
industry
• Some are fishermen, concerned
about the impacts on the
environment
• All want a better future for their
children and grandchildren
18
19
The Norwegian Petroleum Cluster – the
role of Statoil
Øystein A. Håland, SVP DPN
[email protected]
www.statoil.com
20
Back-up – other issues
Security
Classificati
on: Internal
- Status:
Operational actions to improve CAPEX
efficiency
Technology and innovation
Increase quality in early phase in order to reduce late changes
-longer,
colder,
deeper
Increase
standardisation
Improve demand planning
Develop potential new contract set up with the suppliers
Improve the engineering efficiency
Simplify and ensure that the technical requirements, Life Cycle Information
(LCI) and operational manual are used as intended
Develop technologies/concepts for cost reduction
Reduce optionality (capacity for future) for marginal projects
Improve offshore productivity
Security
Classificati
on: Internal
- Status:
A COMPETITIVE ADVANTAGE
Deploying our capabilities outside Norway
Increased recovery
Reservoir management Subsea solutions
Offshore wind
From Troll to
Peregrino
and Mariner
Synergies across
Grane, Johan
Sverdrup, Angola, and
Peregrino
From offshore
petroleum to offshore
wind
• Horisontal and
multilateral wells
• The AICD valve
• Water injection
• Seismic imaging and
monitoring
• Fast model update
From Åsgard,
Statfjord, Oseberg and
Peregrino to East
Coast Canada, Barents
sea and Johan
Sverdrup
• Multiphase flow
Security
Classificati
on: Internal
- Status:
• Marine competence
• Material technology
Complex offshore track record
2011 Peregrino
2007 Tordis
2005 Kristin
1999 Åsgard
2009 Tyrihans
2007 Snøhvit
1996 Troll
1986 Gullfaks
Security
Classificati
on: Internal
- Status:
Future of offshore developments
2020 and
beyond
2020
2019
Statoil Subsea
Factory™
2017
Aasta Hansteen spar for
deepwater/harsh environment
2015
2015
Johan Castberg floating
production in the far North
Longer tie-backs and IOR focus
Fast track
Åsgard & Gullfaks subsea
compression
Security
Classificati
on: Internal
- Status:
Building on the existing subsea toolbox
Lufeng
Multiphase pumping
Troll
Water Separation
Tordis
Separation and
boosting
Installed 1997
Installed 1999
Installed 2007
Tyrihans
Sea water injection
Gullfaks
Compression
Åsgard
Compression
Installed 2009
Project sanctioned 2012,
start-up 2015
The Statoil Subsea
Factory™
Project sanctioned 2011,
start-up 2015
Security
Classificati
on: Internal
- Status:
The power of
standardisation…
…and new
technology
* Johan Sverdrup and Johan Castberg
Security
Classificati
on: Internal
- Status:
Increased oil recovery
Statoil’s toolbox in the whole value chain
Platform technology
• Low pressure production
• Debottlenecking
Subsea technology
• Compression
• Boosting
Drilling and well
• Advanced wells
• Well Interventions
• Standardised well solutions
Reservoir management
• Conventional and advanced
recovery methods
• Geophysical reservoir
monitoring
• Mapping and modeling of
complex reservoir formations
Security
Classificati
on: Internal
- Status:
Cracking the code to the immobile oil
Schiehallion
Bressay
Mariner
Canadian extra heavy oil
fields
Petrocedeño
Heidrun
Dalia
Peregrino
Some enhanced oil recovery
methods
•
Flow diversion
•
Low saline water
•
Polymer flooding
Snorre
Gullfaks
Veslefrikk
Brage
Security
Classificati
on: Internal
- Status:
Oseberg oil
Continuous improvement
1992: First
4D seismic
(in the
world?)
1999:
Oseberg D
increases
gas capacity
Advanced
wells
- Horizontal
- Multibranch
- Zonecontrol
Infill drilling,
challenging
fluvialchannel
(Ness) wells
TrollOseberg gas
injection
Security
Classificati
on: Internal
- Status:
Troll oil
- Horizontal wells, reserves moving vertical
Multibranch
wells
Branch and
inflow controlled
wells
4D-seismic
World
breakthrough
in horizontal
well
technology
from floaters
Not
economic wrt
vertical wells
31
Security
Classificati
on: Internal
- Status:
Ambition:
Troll 333
millSm3
(2100
mmbbls)