Oil and Gas Technologies

1. Oil and Gas Technologies

2. The Strategy for the future energy mix and technology priorities is currently under review…

3. OIL AND GAS TECHNOLOGIES • WHY ARE THEY IMPORTANT? • The UK needs to maximise recovery of its substantial indigenous oil and gas resources both to maintain a secure and diverse energy supply and to maximise economic benefits. • The development of new technology is a substantial component of the drive towards achieving maximum recovery of the resources on the UK Continental Shelf.

5. 2010 2004 2020 UKCS “Window of Opportunity” Source DTI

6. OIL AND GAS TECHNOLOGIES • Identifying additional and incremental hydrocarbon reserves (especially Geophysics, Seismic and other alternative methods of reservoir processing) • Accessing reserves cost effectively e.g. Through Tubing / Multilateral Drilling and enabling difficult oil production e.g. ‘heavy oil’ • Sustaining and improving existing production from mature fields e.g. Wells / Facilities Integrity Management, Sand and Water Management, Capturing and using CO2 for EOR • Improving environmental performance with further specific environmental technology development • PROJECT FOCUS

7. Government: UK Energy Minister DTI Scottish Executive HM Treasury HSE UKTI DEFRA Scotland Office Industry: BP Shell Total Chevron Texaco Talisman BG Group Apache Paladin UKOOA OGIA Amec Wood Group Halliburton Subsea 7 Abbot Group SLP Nessco Amicus PILOT Industry Leadership Team Exxon Mobil ENI Schlumberger Technip Rowan Drilling Bel Valves Xcavo Membership

9. Technology Priorities

12. “Production Capacity & Efficiency Theme 2006” Technology Gap Workshop, 14th March 2006 at Thistle Aberdeen Airport Hotel “Access & Intervention Theme 2006” Technology Gap Workshop, 30th March 2006 at Thistle Aberdeen Airport Hotel Keeping the Call Current MEOR Meeting, May 6th

13. PROJECT SCOPE OIL AND GAS TECHNOLOGIES Research & development of technologies that can make a significant contribution to DTI’s objective of maximising recovery from UK hydrocarbon reservoirs • Consideration will also be given to: • technologies that will impact in the medium to long term, e.g. EOR type activities; • projects that will address environmental challenges e.g. dealing with produced water; • demonstration projects, where a key technology requires an offshore field test as part of the prototype development. A special focus will be given to projects that address the key issues in maximising recovery from ‘Brownfields’. These technologies can come from across the full range of industry operations i.e. from enhancing reservoir understanding and development through to production enhancing technology areas.

14. OIL AND GAS TECHNOLOGIES PROJECT REQUIREMENTS & FUNDING An indicative £2m of DTI funding has been allocated to this area of the competition, supported by additional EPSRC funding. Requirements: • Industry led • Science to Business or Business to Business • At least one partner with defined end-user needs • A clearly defined route to market • Typically of 2-3 years duration • Aim to implement significant business change in 5-7 year timeframe • Typically seeking funding of £0.25m - £2.0m – Standard two stage process • Funding under £250k Fast Track

15. Technology Managers cameron.stewart@dti.gsi.gov.uk 01224 254077 christopher.stewart@dti.gsi.gov.uk 020 7215 1434 Questions & Answers