Unlocking Innovation in the Oil and Gas Industry

1. Your Innovation Partner Event Date Name, Job title

2. Industry context 1999 peak production 5 million barrels per day 2017 production c.1.5 million barrels per day 44 billion barrels since 1964 £330 billion in corporation tax 300,000 jobs in UK from oil and gas Supply chain revenue of £30 billion per year 10-20 billion barrels potential remaining Grow supply chain; doubleexports Maximise Economic Recovery Overall prize £500bn £920bn £420bn revenue revenue revenue Every 1bn barrels produced generates £50bn of value for the economy

3. Creating value Anchor the supply chain in North East Scotland Create a culture of innovation that attracts industry and academia Unlock the potential of the UK Continental Shelf £180 million City Region Deal funding

4. Technology vision Technology can transform the oil and gas industry for the low carbon future

5. Strong performance memberships • £79m invested • Calls for Ideas 50+ 110 151 ApprovedProjects Bringing together operating, supply chain and technologycompaniesto drive innovative newsolutions. Plannedfor 2018 Generating new technology ideas from inside and outside the industry to tackle key challenges. Co-investing in industry-led projectsto develop and deploy newtechnologies. OGTC investment Working with industry partnersto test and trial newtechnologies in an operationalenvironment. Digital transformation Well construction Delivering technology project to fix today, maximise recoveryand transformtomorrow 71 74 Operating company memberships 39 63 94 Small pools Asset integrity £32 million £47 million Decommissioning Non-intrusive inspection techniques could deliver annual savings of £244m New technologyideas 331 29 £244m Service company memberships 49 17 40 Industry investment AssetIntegrity Technology developers 50 SmallPools DigitalTransformation Wells 7 Asset integrity 33 Government Industry Schools Community Decommissioning 215 690+ TechX applications Technologies screened 3 WellConstruction Harnessing the power of an ever-expanding range of transformational new technologies. Accelerating innovation by helping a new generation of entrepreneurs take their technologies to market – faster. 13,400 18 Thermite wellplugging and abandonment technology could deliver annual savings of £100m • £100m 11 visitors Creating a culture ofinnovation in the region through exciting events and workshops. Machine Learning Virtual reality Artificial Intelligence Robotics A positive start… still lots to do

6. Roadmaps - Aligning to deliver V2035 Vision V2035 Targets Increase recovery factor Increase production efficiency Deliver additional barrels Reduce operating costs Double service sector share Add recoverable reserves Reduce well costs Reduce decom costs TLB Challenges Maximise subsurface recovery Asset integrity & inspection risk Unlock new developments Revitalise exploration See clearly under the seabed Slash decom costs Deployment at scale Productive onshore operations Clean offshore energy Efficient offshore operations OGTC Targets Digital transformation Wells Asset integrity Small pools Decommissioning Improve production efficiency by 10% Reduce well costs by 50% Reduce asset integrity costs by 50% Reduce lifecycle costs by 50% Reduce decomcosts by 35%

7. TechX • Partnership with Deep Science Ventures • Kick off July 2018 • 3 challenge areas set by industry • Recruiting 30 scientists • 2-3 new tech company December 2018 • 125 applications – 24 different countries • Assessed by over 50 experts/ entrepreneurs • First 10 started 4 June 2018 • Transition into TechX+ Incubator Sept 2018 • Final steps for T1 Visa status with DIT • Tech from other industries • Potential for application areas in oil and gas • 90 applications – 56 suitable for assessment • 23 passed onto Solution Centres • 4 under review with for Market Entry 215applications 24countries Accelerating the future

8. National Decommissioning Centre Current challenges Future challenges Thought leadership • Facilities clean up and removal • Well plugging and abandonment • Skills and capability development • Design for reuse • Innovative materials • Next generation decommissioning • Basin wide impact studies • Workscope challenge • Use and reuse of UKCS facilities Industry-led projects tackling current and future challenges

9. National Subsea Centre Diverse industry participation Strong R&D partnerships High-quality projects Collaborative hub RGU research positioning Attract a diverse range of UK and international partner companies with the skills, expertise, projects and commitment to invest and participate Develop strong partnerships with institutions, innovation centres and companies in the UK and internationally Work in partnership with industry to create a balanced portfolio of demand-led projects across the technology readiness spectrum Create a multi-disciplinary hub using state-of-the-art technology to enable physical and virtual collaboration between organisations and sectors across the UK and internationally Deliver a world-class research programme with sustainable funding and maximise the impact of R&D investment with spinouts, PhDs, first jobs and graduate apprenticeships Engage widely and inform policy Build strong stakeholder relationships and inform UK and international subsea policy Focused priorities and actions

10. Our purpose Making sure the North East of Scotland remains a great place to live, work and invest