Statoil’s business area

Statoil module – Field Development - MEK4450 - 2011

Magnus Nordsveen

Content

• Oil & gas reserves

• Statoil’s current operations

• Statoil’s strategy

Oil & gas reserves Very difficult to estimate

Definitions:

Oil in place: Total estimated oil in an oil reservoir

Oil reserves: Producible fraction of Oil in place

Recovery factor: Ratio Oil reserves/Oil in place

Current recovery factor from oil fields in Norway: ~50%

Average recovery factor in world for conventional oil: ~30%

Presently estimated recovery factor for Oil sand in Canada: ~10%

Oil reserves 2006 (Source: Oil & Gas Journal)

Alboudwarej et al. ‘Highlighting heavy oil’. Oilfield Review. 2006

Tight oil (not included in previous slides)

• Very large reserves globally. No estimates yet available.

• US:

• Russia: Estimated reserves from one area larger than Saudi Arabia’s conventional

oil reserves!?

Proven Gas Reserves at end of 2004

(PESA news, August/September 2005)

Tight gas (incl. shale gas)

• 2012: US Energy Information Administration estimates gas reserves as large as

global conventional gas reserves

–Based on 32 countries (Areas in Middle East, Africa and Russia not included)

• Shale gas has already changed the gas market

Task and references

• Task: Discuss uncertainties in reserves due to:

– recovery factor/enhanced oil recovery

– measurement/estimation techniques

– unconventional resources

– political factors

– etc.

• References (internet):

– BP Statistical Review

– Oil and Gas Journal

– World Oil

– etc.

Content

• Oil & gas reserves

• Statoil’s current operations

• Statoil’s strategy

GoM: Ultra deep water and deep reservoirs

Angola: Deep water and no infrastructure

Arctic: Remote locations and hostile environment

NCS: “Shallow water” and aging infrastructure

Brazil: Heavy oil and deep water

SEA: Deep water

and limited

infrastructure

US: Shale gas & oil

Canada: Heavy oil

Statoil’s current operations

Present in 37 countries

– Angola: Largest production outside Norway

– Brazil: Peregrino production started (Heavy oil)

– Gulf of Mexico: Deep water gas and oil fields

– USA: Shale gas & oil

– Canada: Oil sand

– UK: Wind mill farms

Angola

• Operated in Angola almost 20 years

• Partners in 8 producing fields

• Current: 170.000 boe/d

• Pazflor field started production summer 2011

(expected production of 47.000 boe/d)

Brazil

• Peregrino – largest operated field outside Norway

• Heavy oil

• Two production platforms

• 30 production wells

• FPSO

Total system simulation

Gulf of Mexico

• Partner in more than 400 licences

• Deep waters (2000-3000 m)

• Presalt (Large oil reservoir buried below thick salt layers)

• Viscous oil

• Currently low recovery (10-12%)

• Large challenges – large potential

Stepwise development of new energy platform

Our main focus is on offshore wind power where we add value by using our

extensive competence from offshore oil and gas activities

• Sheringham Shoal Offshore Wind Farm

• Dogger Bank – Asset for growth

• Hywind – Proven floating wind mill concept

Sheringham Shoal Offshore Wind Farm

• Scira Offshore Energy Ltd.

(Statkraft + Statoil)

• 50 years lease agreement with The

Crown Estate

Sheringham Shoal

Wind Farm

• Project Highlights

–Installed capacity 317 MW

–35 km2 wind farm appr. 20 km off the

coast

–Water depth 17m – 22m

–88 wind turbine generators, each 3.6

MW

Wind Farm Highlights

20 - Classification: Internal 2010-11-24

• Target 9 GW production, potential to increase to 13 GW

• Area: 8660km2 (3343 square

miles)

• Distance from shore: 125-290 km (77-180 miles)

• Water depth: 18-63 m (59 to

206 ft) • High wind speeds >10 m/s

average wind speed across the zone

DOGGER BANK KEY FACTS

Cost of Energy could reach grid parity in high cost

electricity markets during the next decade

• Potential for further cost reduction

–Lighter / cheaper turbines

–Mass production

–Supply chain development

–Improved installation methods

Content

• Oil & gas reserves

• Statoil’s current operations

• Statoil’s strategy

Statoil’s strategy

Maximise the potential on the Norwegian Continental Shelf (NCS)

Tie ins to existing fields/infrastructure

Increase the recovery (Subsea processing, etc)

New independent discoveries (E.g: In Barents sea, Nordland)

2. International growth

Conventional gas and oil

Unconventional gas and oil

3. Increase our engagement in renewal energy

Challenges

• Find new oil and gas fields

• Enhanced recovery

–Smart wells (horizontal, zones, branched)

–Water/gas injection wells to maintain reservoir pressure

–ESPs (pumps in wells)

–Sub sea processing

• Transport

–Multiphase to receiving facility (floater/shore)

–Single phase to market

• Deep waters, Harsh environment, Arctic

Oil reservoirs

Gas reservoirs

Gas condensate long range transport < 500 km

Challenges:

• Pressure drop

• Liquid accumulations in inclinations at low rates

• Surges and slug catchers

• Hydrates (water+gas) Rough seabed – estimated pipeline profile

Pressure drop – liquid accumulation

• High flow rate: Pressure drop is friction dominated

• Low flow rate: Pressure drop is gravity dominated due to liquid accumulation in

upward inclined sections of the flowline

0

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0 5 10 15 20

Production rate [MSm3/d]

Pre

ssur

e dr

op [b

ar]

0

5000

10000

15000

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30000

35000

40000

45000

Liq

uid

co

nte

nt

[m3]

Pressure drop

Liquid content [m3]

Friction

dominated

Gravity

dominated

Task: Pressure drop calculation – gravity

dominated flow

• Flow line over 100 m hill

• Holdup in uphill section: 30 %

• Holdup in downhill section: 0.3 %

• Density of condensate: 675 kg/m3

• Neglect gas

• Neglect frictional pressure drop

• Find pressure drop between 1 and 2

• Compare with single phase flow calculation

(100% holdup in upward and downward inclined sections)

1 2

Oil field long range transport < 200 km

• Currently < 50 km

• Challenges: Wax, hydrates

• Current solution:

–Keep temperature above hydrate temp.

(insulation or insulation + heating)

–Pigging for wax

• Future alternative: Cold flow

–Transport with particles without settling on wall/plugging

Heavy oil transport < 50 km

• Challenges:

–High oil viscosity and emulsions => High pressure drop

–Viscosity is very sensitive to temperature

–Potential large problems during shutins and cooldown

• Current solutions for shorter distances:

–Production with large water cut (water continuous oil/water mixture)

–Dilution with lighter oil

–Outcirculation with non viscous fluid during shutins

Athabasca Bitumen, Canada (8.6oAPI)

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1000000

10000000

0 50 100 150 200 250 300

Temperature (oC)

Oil

Vis

cosi

ty (

cp)

http://www.statoil.com/

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