What made Norway a deepwater hub

Technology mapping, Importance of field trials for accelerated deployment of new technology by Anders J. Steensen, Programme Coordinator, DEMO 2000

The Research Council of Norway

Adviser to the government Research funding

• Support basic research • Implement national thematic priorities • Support private R&D

Networking and dissemination Internationalization

3

National research & technology strategies for petroleum, energy and climate

Governmental policy: Norwegian petroleum

research must also focus on climate

CO2 management;

Carbon capture, transport & storage

Energy efficiency and cleaner production

3

OG21 (the petroleum sector)

Energi21 (the energy sector)

Klima21 (the climate sector)

4

The OG21 strategy – thematic areas for petroleum RD&D

Four main Technology target areas

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Energy efficiency and

environmentally sustainable

technologies

Exploration and increased recovery

Cost-effective drilling and

intervention

Future technologies for production,

processing and transportation

5

Governmental Instruments for Petroleum RD&D

PETROMAKS 2 Basic and Applied Research, Innovation

DEMO 2000 Demonstration, Verification

PROOFNY Effects of Discharge to Sea

PETROSAM 2 Social Science Related to Petroleum

Centres of Excellence

Centres of Research-based Innovation

Tax Deduction Scheme

6

Petroleum activities RD&D 2012

24048

12

13

90In MNOK

PETROMAKS

DEMO 2000

PROOFNY

PETROSAM

Centres & Infra

What is the Norwegian model, what made us successful on deepwater applications

History

Tradition

Offshore exploration

Technology transfer

Innovation

Political goals

The Norwegian history

Named after a sea route

A nation of seafarers

Experienced shipbuilders

Advanced and innovative ship owners

Good timing

Limited human resources

The 1970s

Ekofisk Development

1st subsea production

1st concrete structure

1st oilfield in production

Statoil was founded

Partner in Ekofisk: Phillips Petroleum, Petrofina, Total, Norsk Hydro

The 1980s start of the subsea era

Moving into deeper waters

Opening of the Norwegian Sea basin

Oil price collapse

Need for cheaper developments

Kongsberg goes subsea

Three independent Norwegian oil companies: Saga, Statoil and Norsk Hydro

New tax-regime

1990 - 1997 Primarily subsea developments

Platforms becomes field centres

Field developments for floaters in the Norwegian sea

Subsea production becomes the standard field development model

Bjarne Skeie establish Hydralift and enters into drilling

Hitec develops computerised drilling

Horizontal drilling enters the NCS

NORSOK standards

EPC-contracts

1996 Troll field start production

Offshore gas production Onshore process First extencive use of the OLGA software The last North sea giant

1997 – 1998 Troll B and C The revolution

Subsea Production from a thin oil layer

Required long horizontal wells

First with multilateral wells subsea and offshore

First with subsea separation

Ormen Lange Discovered

1998 The oil price collapses

Oil price plunged to 10 USD Investments stopped internationally Need for new technology Unemployment rate increased Need for new collaboration Intsok is established

1999 - DEMO 2000 established

The goal is to inspire oil companies and vendors to develop and test new equipment and processes that will improve the economics on the NCS

The basis is a collaboration between vendors, oil companies and the state in order to demonstrate equipment in field tests.

DEMO 2000 shall contribute to improve export of Norwegian technology into the international oil and gas market.

DEMO 2000 shall contribute to secure that Norwegian industry is in the lead regarding new technology and thereby strengthen the supplier industry and employment

OG21 is established

Still low oil price

Need to prioritize the R&D

Collaboration between oil companies, supplier industry and academia to develop a national R&D strategy

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

2000 – 2006 Subsea dominates field developments

Norsk Hydro decides to develop Ormen Lange with a sub sea to shore solution First deep water subsea i Norway 1100 meters Sea bottom temp. – 1,2 degrees C World biggest subsea wells (13 inch) Saga Petroleum merged with Hydro Subsea separation on stream at Troll Statoil decides to develop Snøhvit LNG with subsea to shore solution (First arctic development subsea) 2003 Government releases a white paper: Main goal to have 50 per cent recovery rate

The NCS matures

New technology needed to develop satellite fields

High water cut Increased energy

consumption Climate challenges Low pressure gas

production Extended life for old

infrastructure Exploration projects could

no longer carry technology development cost

2007 Statoil and Hydro merges. The technology race slows down

Tordis IOR, the first commercial subsea separator

Improves IOR, Recovery rate increases from 49 to 55 %

Sand separation

Sand pumped back to reservoir

Separator, pumps and flow measurement developed through DEMO 2000

Norwegian subsea process technology becomes international

Chosen by Total, Shell and Petrobras

Deep water fields develops with subsea process equipment

Existing fields extend lifetime and improve IOR

The North Sea as a deep water test lab

Today approx. 500 subsea wells 50 % of oil production from subsea wells Subsea processes: Injection pumps Separation Boosting Compressors

Next step

The Åsgard subsea gas compressor

The Gullfaks subsea gas compressor

The Ormen Lange subsea gas compressor

Research development and demonstration PETROMAKS 2 and DEMO 2000

PETROMAKS 2

Major R&D programme

Mission to enhance knowledge and innovation within the Norwegian oil and gas sector both in the industry and in the academia.

Approx. 60 mill USD yearly

DEMO 2000

Demonstration and piloting of new technology

Projects generated in the industry or in the institute sector

50 % projects coming from PETROMAKS

Approx. 8 mill USD yearly

Need for new technology Typical DEMO 2000 projects

Longer distances requires need for improved flow assurance

Cost reduction by going electric subsea

Improved oil recovery requires subsea process equipment

Tie backs to existing infrastructure

DEMO 2000 Execution

Projects must be executed in cooperation between a supplier and oil companies. Duration 2 – 3 years.

DEMO 2000 supports 25 % of the cost the supplier must cover 25 %, while the oil company covers the remaining 50 %.

Primarily only suppliers can apply for DEMO 2000 support, however research institutes can be granted

Why has Norway become a technology leader in deep water?

Harsh environment

Willingness to take risk

Shipping/naval tradition

Strong regulations and legislation

Technology competition

Strong clusters within drilling and subsea

R&DD Strategy

Next technology ambition: The subsea factory Norway’s equivalent to space technology

Thank you for your attention ajs@rcn.no