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NO RWEGIAN PETROLEUM DIREC TORATE

Flaring on the Norwegian Continental Shelf

Presentation for Canadian authorities June 13. 2008

*tiSAHistorical view of the flaring on the NCS NPI •

~() •

(1)

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M 25E ~ 2()e-M 15 E ~ 1() C) e.­.... 5 ca-~

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1975 1979 1983 1987 1991 1995 1999 2003

-1.­ .­ .­ .-.­ .-.­ .­ .­ .­ .­ --

6/1212008 3

*~Gas flaring in Norway NPl •

• Flaring and venting strictly regulated from a resource management point ofview since the early days on the Norwegian CS (1971 -7)

6/1212008 4

--

dv Gas Flaring and Venting Regulations (Norway) ~

NPl •

• "Flaring in excess of the quantities needed for normal operational safety shall not be allowed unless approved by the Ministry":

Associated gas utilisation required to get authority approval of Plan for Development and Operation fDO -f/~nh, ,. u~ -'- v.IfOC.IerJ(Z(tMf (i;t;e"~/-(""!O>"-f-) : ~J/iI"7}J·t(d{owM

"'f (J - '-y t:;;f 01' t.tS4.. .' Lytk~.fo"~ a.'- e~lZ.

Annual gas flaring permits and production permits (pollution permits) If/f fo NPD - 1£tu",jI(lI'!jIlY'!f1,-ff

?: /Julivm~ VO.Aft-.

Avoid waste ofpetroleum and reservoir energy fr.)~~-er h~j/(){~J.

Cold venting is not in accordance with the principle of environmentally prudent petroleum production ) I L/ I.. "t- itwitl k. lQ~tvJ.

I. . I . a I;'Qual iDt {aU ~CJt1) "":$ IJI tleJ t\6<r ub, .... (f\'­r tIr"fll«~'~f 9" /-.<-, I; ~e"fI)o1.o gDa 5 L

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• NOx-~x and ~tax ~arged Q fuel ,and flare consumed and vented/?] !gas l . , - ~ - !~~)

~ JL/rrJ ~o~ \~K ~r¥~ ("\ I ·~ ~£~,- ) A/. t10~/::i::V- / I f Qj'~ , I J. -v -rdll" c:..A I j!{0 tt I/;c,." /a-I Vt~f(fe( or!p.'J,rd _ COz

bFlSII~~ 5£7 up ~s 11thrn. ¥~\ ~_ 6/12/ 2008 FlilliD "I/£"&, ,, ~cf.

~ 2) l}reav,ft.., f ~~jtd.~ .

5

Gas-Balance •~Norwegian Continental Shelf NPl

210 I

180

150 -l

I

I I I I I I

E W')

120

n

-0 ~

-- 90-n

60 ..J

30

on n I I I I I I I I I I I I I I I I I I I I I I I I I I I

I I I I I I I I I

I I I I I I I

•

l. : ~ 1 :V ~~ . .w{ od

Il'Ic.1(UJ ­f"l;~ ,, (r

• Fuel&Flare

o Gas injectior

o Resourcesr

• Reserves

o Historic expc·

re.lj~ ISfetl ·~t., ~r1Ul't ,;.. f-ttt-,U!

LD I' ­ 0) ...... C") LD I' ­ 0> ...... C") LD I' ­ 0> ...... C") io I' ­ 0) ...... 0) 0) 0) o o a ......I' ­ I" ­ co ex> co ex> co 0> 0> a o

0) 0) 0) 0> 0) 0> 0) 0) 0> 0) 0) 0> a o o o a a 66/12/2008 b;...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... N N N N N N

ess .. laring than in comparable regions

. 0 lleryllW cllMe,~(.lue to· ~1~lrri<'~1.h~ h~J( '~~, fu r " j l\ e f • J . ·.AM~ !> \

- .t.1" " ci "" \ W\. ~ _ . ~~ ~)% II

Develop~~~t~~ ~;6~~~du re(s and technologies to reduce gas flaring

Development of integrated gas transport systems

Gas storage solutions

More focus on enhanced oil recovery - easy access to gas

in some cases increased field

development costs

qfy ~

NO RWE G IA S PET RO LE UM D I RE CT OR AT E

• FAROE ISLANDS

SHETLAND o Flor"

THEORKNEYS

NORWAY

st. Fergus-

q;qy r

SI

m

Teess ide. s ~ DENMARK

Easington.

GREAT Bacton. BRITAIN

GERMANY THE NETHERLANDS

BELGIUM -­ Existing gas pipel

FRANCE Projected gas pip

~ fiSt.Some comments.. NPI

• • Environmental standards are easier to adapt in pre-development phase

than in production phase

• Gas infrastructure - investments in infrastructure, 3rd party ~ss, tax deductability (t'irIJ~) riWv!'~''''aJ ?)

• Probably harder to reduce flaring in remote areas without gas pipelines .--;­

~F) J 11~?-: f/¥"'7-> o~y,jMt6~ Iv~;;(v ll4. o1t! l) rfl. i't!C,)-t>4to

• Approx. 20 - 40 % of flaring is continuous flaring while the remaing share is caused by events ana misliaps to secure safety and operational purposes

. .., -{ . I J-U}, ••A . ./f C c7'J I.(ln(/ 4f f'''~ ).vf "d #1If.,{jI1.,! ";,;e!rlfhrev-e fQJ~_

f t-LD ~ITh J04 1J1".t.~1.(,..- ~ r-e-c -I 17'- ' .- / . - Ile-ur- e--rvt... IT"- V

• "Are we certain that the actual flaring is necessary for safety purposes?" - OCs carry through awareness campaigns

6/12/2008 9

Injection of C02 from C02-rich gas ~• vll'r/~~ ()r;",d•• . 5n4UCW •

I~'#" It r: r '""f""

• Snohvit and Sleipnerare two fields were C02 needs to be removed from the produced gas in order to meet the specifications set downstreem.

• Both fields are built with CCS-technology for injection of C02 in to aquifers close by

611212008 10

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•

*~ NPI

11

"'f'lfr"'"!.

c.. tt.wtc. ~

Clean flue gr

C0 2 Storage

Products: - Electricity ? - Chemicals ~

-LNG - Others

~ 5c/1'l'1 t: /II tf/lllil J -(r-lItr!,.o h"tJJ

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fA"~"t>1 tv l.LJ.tit

Flare

Ylt

Sale YUtilization" " ~_¥1~1

Oil

Senaration

~ _ ~ ,i·¥> .....• "_ _ ~_ ~ 'fIi:'~,,,, ~_ ..... -:..... ~.

Main stages in Production and Capture ~

>

~Main issues the last years NPl ••

_ f}1I n-tv" t{~II(.I:fn-ri 111",71 tt {JeJJ 'l/",;;,,:.>r e nvl;. (/I'IiI1 .....,f~<.• Offshore electrification J2-fe<,fr 4-u{ cost +" Sr!7 ~/~;CJfr j';-.()'G#t .r4Cf~ .

• C02 Capture and Storage

• Reductions in climate gas emissions - multiple regulations

• Opening of Barents Sea and the areas important for fisheries around Lofoten - stricter environmental regulations

6/12/2008 12

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