Piloting of New Technology for Deep Water Joint DEMO 2000 PROCAP 3000 Workshop Rio de Janeiro, 22 24 March, 2004

1. Piloting of New Technology for Deep WaterJoint DEMO 2000 – PROCAP 3000 WorkshopRio de Janeiro, 22 – 24 March, 2004 Morten Wiencke Program Director DEMO 2000 www.demo2000.no

3. DEMO 2000 Mandate Accelerate uptake and commercial use of new technology Share risk in piloting of solutions Provide testing ground for new products, systems and solutions Help new technology become qualified (”Field proven”) and competitive Important for deployment, use and export of Norwegian products

4. Key Challenges - NCS

5. Why New Technology? ENABLING NEW RESERVES Go Deeper Further Away Subsea Seafloor to Shore 1000 - 2000 - 3000 m

7. The pace of innovation in E&P has been slow relative to that in other industries

8. Technology Development Costs – E&P UpstreamTypical Trends

9. Focus and Approach

10. Organization and Participation

15. Troll C Pilot

16. Multiphase Boosting & Transportation

17. MultiBooster ™ at Balmoral

18. Subsea to Beach – Platformless Development Made Possible

19. Some Subsea Milestone Projects

20. Global Technology Networking

21. 6th Call for Projects. Application Deadline: Monday, March 15, 2004 The Demo 2000 program is an initiative supported by the Ministry of Petroleum and Energy (MPE) in order to ensure long term competitiveness in the oil and gas business and continued profitable development of the petroleum resources of the Norwegian Continental Shelf. The program also aims to develop innovative Norwegian industrial products, systems and processes for the global offshore market. The steering group for the program consists of representatives from oil companies, service industry and research institutes. Since its start autumn 1999, a total of 250 million NOK have been awarded through 5 application rounds within key technology areas (a) reservoir description and interpretation, (b) drilling and well technology, (c) seabed/downhole processing and multi-phase transport, (d) deepwater technology and (e) gas utilisation. To date more than 80 projects have been approved by the Steering Committee. The Demo 2000 support has triggered supplementary funding from oil companies and from the contractors themselves to a total funding in excess of NOK 1 Bn. More information about the program can be found at the website www.demo2000.no . In the national strategy for increased value creation in the petroleum sector, OG 21 (Oil & Gas in the 21st century), oil companies, service industry, research institutes and the government have identified technology target areas that require technology development and collaboration. This strategy is summarised in a document (www.og21.org) that governs Demo 2000 and other research programs. The Demo 2000 Steering Group hereby announces a 6th call for projects to close technology gaps within these key topics: Subsurface: Real Time reservoir management. Stimulated recovery. Seismic methods in exploration and production. Wells: Cost effective drilling. New drilling concepts. Smart wells. Well intervention. Process: Seabed/remote and compact processing. Long range multi-phase transportation. Seabed boosting. Platform free field development. Deep water: Floaters for deep water or marginal fields. Mooring and risers. Subsea systems. Gas utilisation: Competitive gas production and offtake. Gas conversion. Technology for independent development of marginal fields with associated gas. Technology and products that promote safe and environmentally friendly petroleum exploitation will be given special consideration in the evaluation of the applications. The projects shall address total solution concepts that, when implemented, will form a basis for new field developments on the Norwegian Continental Shelf. The projects shall apply to specific fields, as defined by oil companies/operators, at which more cost effective and environmentally friendly can be qualified in field trials. The application shall contain pilot demonstration of the technology in question. Details of further commersialisation plans, including first use by participating oil companies, are encouraged. The public funding in Demo 2000 is intended to trigger increased levels of development activities in the industry. Projects that can enable accelerated field developments will be prioritised. Through the Demo 2000 program, it is envisaged that new and more profitable technology will be verified and thereby contribute to increased confidence in cost and schedule of future developments on the NCS. An application will normally be submitted by a service company or vendor in collaboration with an oil company and possibly another company, research institute or university. A significant part of the project costs will have to be borne by the participating oil companies and the contractor. (The Demo 2000 share has on average been 25-30 %). The plan for such funding should be agreed between the participants prior to submitting the application. Support by Demo 2000 is governed by guidelines for public funding in accordance with the EEA agreement. Project duration should not extend beyond year-end 2006. The Demo 2000 Steering Group has at its disposal an appropriation of 30 million NOK from the 2004 State Budget. Deadline for submitting applications is Monday, March 15, 2004. Application forms and supplementary information can be obtained from the Demo 2000 web site, www.demo2000.no. Due to the involvement of international expert groups in the review of project applications, the application should preferably be submitted in English. The application should be sent as an e-mail attachment to: tkl@forskningsradet.no and the original hardcopy sent by mail to: Demo 2000

22. Program Monday, 22 March, 2004 Introductory Session (Plenary). Review and understand business objectives and technology needs of DEMO 2000 and PROCAP 3000.   12:00    Lunch, Hotel Florida  13:00    Introduction of participants             Workshop Objective   13:30    PROCAP 3000 - Asset Needs and Technology Gaps               14:00    DEMO 2000 - Piloting of New Technology             by Morten Wiencke, DEMO 2000             14:30    Coffee Technology Strategies and Capabilities (Plenary)   15:00    Oil Companies             -           Statoil             -           Hydro             -           Shell             -           Petrobras   16:00    Suppliers/Contractors (Kvaerner, FMC, ABB Vetco, Framo Engineering, AGR, Odim)   17:00    Adjourn   Tuesday, 23 March, 2004 Presentation/Review of Selected Technology Projects Mature for Piloting FMC Kongsberg Subsea Subsea Wireline Well Intervention System Seabed Separation System/Integrated Sand Management ABB Vetco Seabed Separation System (Troll Pilot, NUPROC) Composite Catenary Deepwater Riser RICTIS Coiled Tubing Subsea Intervention System Aker Kvaerner Composite Riser and Tether Technologies Subsea Boosting (GasBooster, MultiBooster) and Processing Odim Alitec Fibre Rope Deployment System for Ultra-Deep Water Framo Engineering WGC2000. Subsea Wet Gas Compressor AGR Riserless Mud Return System for Tophole Drilling Deepwater Developments (Dual Gradient Drilling) 09:00    Project Presentations 12:00    Lunch 13:00    Project Presentations (Cont'd) 15:00    Summary and Conclusions of Plenary Meeting Further Collaboration DEMO 2000 - PROCAP 3000 Confidentiality Agreements 16:30    Adjourn

23. Presentation/Review of Selected Technology Projects Mature for Piloting FMC Kongsberg Subsea Subsea Wireline Well Intervention System Seabed Separation System/Integrated Sand Management ABB Vetco Seabed Separation System (Troll Pilot, NUPROC) Composite Catenary Deepwater Riser RICTIS Coiled Tubing Subsea Intervention System Aker Kvaerner Composite Riser and Tether Technologies Subsea Boosting (GasBooster, MultiBooster) and Processing Odim Alitec Fibre Rope Deployment System for Ultra-Deep Water Framo Engineering WGC2000. Subsea Wet Gas Compressor AGR Riserless Mud Return System for Tophole Drilling Deepwater Developments (Dual Gradient Drilling)