Stavanger, September 12 2007

1. Norwegian petroleum related R&D. ICRARD meeting Stavanger, September 12 2007 Adviser Tor-Petter Johnsen

2. Topics of the Day • The Norwegian R&D structure • The Research Council • Petroleum-related research • OG21 • PETROMAKS • Environmental Technology • HSE in the petroleum sector

3. The Research Council is: agovernment adviser identifying present and future needs for knowledge and research, and recommending national priorities afunding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The Research Council has an annual budget of some 5,5 billion NOK (1 billion US $) aco-ordinator initiating networks and promoting co-operation between research institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research

4. Science Strategic Priorities Innovation

5. Division for Strategic Priorities Future technologies Society and Public Policy DivisionDirector Marine Resources and the Environment Staff Energy and the Environment Global issues

6. Ministry of Education and Research Ministry of Petroleum and Energy Organisational line Strategic guidelines Research council OG21 National strategy ..... TTA3 TTA2 TTA1 Petromaks Strategic programs (RCN) Demo2000 JIPs (Joint industry projects) Time to commercialisation Pilot qualification of technology Basic research, User driven research Basic strategic research in petroleum An unique cooperation model

7. OG21 – Oil and gas in the 21th century • OG21 is expected to result in a new overall technology strategy, leading to more concerted and focused efforts in research and technology development, and thereby promoting more efficient and timely results. • The Norwegian authorities also recognised that the petroleum industry identifies technology as the single most important factor for reducing costs and enhancing the competitiveness of Norway’s oil and gas activities. Technology will also be crucial for resolving the considerable challenges facing Norway's petroleum industry. • The goal of OG21 is to: • increase value creation on the NCS • increase the export of Norwegian technology

8. Vision A sustainable petroleum industry for the next 100 years based on collaboration with respect to knowledge and technology • Develop new technology for maximum value creation from NCS • Increased export of technology Main Objectives • Sustainable development and zero harm to people and environment • Increased reserve replacement • Increased hydrocarbon recovery • Cost effective technologies for arctic developments • Development of marginal fields (deepwater, small fields, etc) • Increased value creation from gas • Competence development and increased recruitment • Increased export of technology • Environmental technology for the future • Exploration and reservoir characterisation • Enhanced recovery • Cost effective drilling and intervention • Integrated operations and RTRM • Subsea processing and transportation • Deep water and subsea production technology • Gas technologies Key Challenges Technology target areas OG21 – Oil and gas in the 21th century

9. Total public R&D budget Norwegian petroleum sector

10. PETROMAKS is the umbrella for most of the petroleum-oriented research supported by the Research Council

11. PETROMAKS Goals Find more oil and gas Produce more oil and gas Innovation in supply industry Efficient and environmental safe operations Budget 2007: 350 mill NOK – 45 mill Euros Project portfolio including industry funding: 2,1 BNOK

12. Key operating figures in PETROMAKS 2007 • 163 running projects • Approx 60 projects with international participation • Approx 130 phd’s financed, another 115 to be started during 2007

13. Projects per Target Area

14. Environmental technology • Proposal for new initiative at national level from three governement agencies • Environmental technology in the Research Council • Clean Energy • Marine and coastal environment • General support for technology development • Environmental technology in PETROMAKS • Produced water • Environmental monitoring • Oilspill handling

15. HSE research supported by the Research Council • Health, Social science, sickness absence • The petroleum sector as a case study and source of knowledge to be applied in other sectors • Phase 1: 2002 – 2006; Phase 2: 2007 - 2011 • Integration with the ”technical” R&D in PETROMAKS leads to higher degree of relevance and more efficient implementation of results • Integrated Operations • “Collaborative Decision Making in Integrated Operations” • “An Operation Center for Design, Implementation and Testing of New Work Processes for Real-Time Reservoir and Production Management” • Safety; technical and organisational • Disaster preparedness

16. HSE in PETROMAKS Safety • Building Safety in Petroleum Exploration and Production in the Northern Regions • Emergency handling in centres of coordination • Risk Modelling, Integration of Organisational, Human and Technical factors • Safety offshore for hearing and voice communication Culture • A comparative study of HSE-culture - Norwegian Continental Shelf and UK Continental Shelf • Culture, crises and campaigns: a comparison • Effects of "Paperwork management" and Integrated Operations on managerial practice and HSE offshore: a comparative study

17. HSE in PETROMAKS Health • A pilot study of acute health effects from hydraulic oils • Practical methods for measurement, surveillance and calculation of chemical exposure from fume and vapor from drilling fluids. • New methods and technology for preventing noise induced hearing loss at offshore platforms - Field experiments and data analysis • Shift work and Health in the Norwegian Petroleum Sector: Employees' Work-Personal Life Integration • Coping with shiftwork: An empirical study among offshore and onshore petroleum workers in Norway. • Robust Regulation in the petroleum sector

18. HSE in PETROMAKS • New initiative • Working hours and health • Longitudinal resarch • Cooperative effort • Basis for studies in other sectors • Organize a national effort • Chemical exposure • Long term effects • Specific substances

19. HSE R&D Capacity Work & health Chemicals Work processes Technology Competence Challenges for future R&D Environment Climate change Zero emission Arctic conditions

20. Meeting the needs of the new working leisure class? Thank you for your attention!