Revision of OG21 Technology Strategy

1. Revision of OG21 Technology Strategy Force workshop, 31/5-2005

2. OG21 –Oil & Gas in the 21st Century Main Objectives Develop new knowledge and technology to ensure economic and environmentally sound development of the resources on the Norwegian Continental Shelf --------- Strengthen the industry’s competitive advantage in a global market by developing new and attractive technology products and systems

3. Export of technology Added value from gas - New areas Increased recovery Fields in production 2002 2010 Development perspectives for value creation from the petroleum industry Coordinated National R&D efforts Annual Value Creation

4. Schedule for revision of the OG21 strategy Jan Feb March Sept April Aug June July Oct May • Feedback hearing • Workshop • Revised TTA structure • Nom. New LP • TTA to prepare 2 pages strategy • Revise strategy • Hearing • Update strategy • OG21 Forum

5. As is Environment Increased recovery Gas value chain Deep water Small fields To be Environment Increased recovery Gas value chain More successful exploration Arctic operations Revised focus areas

6. As is Zero harmful discharge to sea 30%red. emissions to the atmosphere Stimulated recovery Cost effective drilling Real time reservoir management Long range transport of well stream Seabed and downhole processing Competitive gas production and off take Deep water floating technology To be Environmentally friendly operations (incl. emission to air and discharges to sea) Stimulated recovery Cost effective drilling Integrated operations and real time reservoir management Sub sea fluid processing and transport Competitive gas production Deep water technology Exploration technology and reservoir characterisation Revised TTA structure

7. Proposed revised strategy

8. Environment • Value creation from mature fields • Cost effective tie ins of smaller fields (new hubs) • Access to new areas • Sustainability • Globalisation of technology • Environmentally friendly operations • Exploration technology and reservoir characterisation • Stimulated recovery • Cost effective drilling • Integrated operations and RTRM • Sub sea fluid processing and transport • Deep water technology • Competitive gas production Increased recovery Gas value chain Arctic development More successful exploration Strategy structure Challenges Norway Export Focus areas Technology target areas

9. Instruction Lead Parties • The Lead Party has received extended responsibilities from the OG21 cluster. The LP shall act as a ”pusher” to ensure progress in the implementation process for the TTA. It will also ensure the quality of the scientific and technological content of TTA by actively searching support in the O&G cluster. This means that there will be a close contact between the Lead Parties and the supplier industry, engineering companies, R&D-institutes, Universities, etc. • The scope of work that the LP shall fulfil includes: • Preparation of a ”state of the art” report with an ”as is ” description of the TTA situation in Norway. • Carry out a gap analysis • Evaluate the need for additional detailing, provide a road map for the TTA and give recommendation of future work.

10. Instruction Lead Party representative • Each Lead Party nominate a representative (”Champion”) within the respective technology target area • Lead Party act on behalf of the whole cluster • The Lead Party role is coordination and facilitation within the cluster • The Lead Party representative will be a member of the OG21 Technical Committee • Lead Party will be responsible for strategy input within the respective technology target area, representing the whole cluster • Lead Party should be actively involved in respective area through own operations (NCS or internationally) • LP representative should be recognised within the oil and gas cluster (nationally or internationally)

11. Instruction Technology Target Area • The main tasks for the technology target area groups are • listed below: • The TTAG shall put focus on the technology area in R&D activities in Norway • The groups shall facilitate discussions on R&D strategy and identification of • technology gaps based on needs on the NCS • Promote the technology area as an option towards licences (value proposal) • Identify and clarify relationships with other initiatives to avoid double work • Facilitate for information exchange within the area among stakeholders in the • Norwegian cluster (Industry, Oil Co’s, R&D institutes, Authorities, Educational • institutes etc) • Maintain and develop network of competence within the area among stakeholders • in Norway, and get the network to contribute • Each TTA shall address the whole process chain, from education through strategic • R&D

12. Based on the focus areas and value creation from each of the area, the revised strategy will be detailed for each of the new technology target area: Example: Arctic operations - Exploration; specific needs for Arctic? - Drilling; specific focus on clean drilling - Sub sea process; specific focus on water and chemical handling - Environment; specific focus on beredskap + … - etc.. Focus areas => guidelines to the technology target areas

13. Lead Parties as is

14. Faster, more cost-effective exploration Reduce the average lead time from licence award to discovery to 3 years. . Sustainable development Reduce CO2 emissions on the NCS by 30 % compared with today's level within 2010 Zero harmful discharge to sea within 2008 Exports Increase exports of Norwegian technology by NOK 50 billion, equivalent to sales of NOK 70 to 80 billion in 2010. Enhanced recovery Felt med STOOIP* større enn 200 mill.Sm3:60% olje Felt med STOOIP mellom 50- 200 mill.Sm3: 50% olje Felt med STOOIP mindre enn 50 mill.Sm3: 35% olje Gassfelt: 80% OG21 ambitions

15. Schedule for revision of the OG21 strategy document (1) • Broad hearing of the current strategy (17/12 -04 - primo Jan. 05) • Memo of received feedback (10/1- 05) • OG21 secretariat to suggest schedule for revision process (10/1-05) • Board discussion and agreement together with MPE 20/1-05 • Board agreement on foresight session (20/1 -05) (to be held 9/3-10/3 -05). Report from session ready 16/3. • Overall revised objective, goals and TTA structure ready (~1/4- 05) • MPE to nominate revised Lead Party structure (~1/5 -05) • New TTA groups to revise/ make ~2 page strategy for individual area (ready 1/6 -05)

16. OG21 secretariat to revise rest of strategy document in close cooperation with the OG21 board (Draft ready 17/6 -05) Draft strategy document approved by OG21 board and MPE ultimo June 2005 Draft strategy document to be sent 1/8 -05 on broad hearing with feedback by 15/9 Final strategy document based on feedback (ready ~1/10-05) Posting of final strategy document on OG21 web page (~1/10 -05) Presentation of revised strategy document for the cluster on OG21 Forum meeting (18/10 -05) Schedule for revision of the OG21 strategy document (2)