ExxonMobil 112 years in Norway

Transcription

1 ExxonMobil 112 years in Norway

2 2 3 ExxonMobil in Norway Exploration Technology ExxonMobil in Norway includes several companies i.a. Esso Norge AS, ExxonMobil Exploration and Production Norway AS, and ExxonMobil Production Norway Inc. all of which are affiliates of ExxonMobil Corporation in the USA. Esso Norge AS manages all upstream and downstream activities in Norway. In this brochure, we use the term ExxonMobil when referring to the companies activities in Norway. The company has its headquarters at Forus in Sandnes municipality, where all offshore exploration and production activities are coordinated. ExxonMobil s marketing activities are operated from the Skøyen office in Oslo, while the refinery is located at Slagentangen near Tønsberg. The total number of employees in the company is ExxonMobil is the the fourth largest oil and gas producer on the Norwegian Continental Shelf, having equity in more than 2 gas and oil fields in production, and about 1 % interest in Norwegian infrastructure for gas transportation and treatment. Our company is the largest international producer and investor on the Norwegian shelf and operates Investments (Billion NOK) Oil and gas production in Norway (1 barrels o.e. per day) 2 21 Oil production Gas production the Balder, Jotun, Ringhorne, and Sigyn fields. The production in 24 was about 44, barrels oil equivalent per day which is equivalent to about 1% of the total Norwegian production, and also 1% of ExxonMobil s production worldwide. The refinery at Slagentangen produces 5.5 million tons of oil products per year based on crude oil from the North Sea. ExxonMobil has a market share of about 21% of the total sales of oil products in Norway. The company markets both Esso and Mobil branded products. The number of gas stations is 33. 1) Key figures in million NOK Outline of profit Sales income incl. excise taxes Operating profit Financial items Pre-tax profits Profits of the year Outline of Balance Fixed assets Current assets Equity Provisions for liabilities Long-term debt Short-term debt Other Main Figures Investments Ordinary depreciation Company capital (capital stock) Staff Average number of employees Wages and social costs ) The main figures are a direct summation of items in the accounts of ExxonMobil Exploration and Production Norway AS, ExxonMobil Production Norway Inc., Mobil Oil AS, and Esso Norge AS. Internal sales between the companies have been eliminated. Short term-liabilites and debt between the companies have been eliminated. ExxonMobil has been an active explorer in Norway since 1965, when Esso Norge AS received the first three exploration licenses awarded on the Norwegian Continental Shelf (NCS). Since then the company has explored in the Barents Sea, North Sea and Norwegian Sea discovering commercial reserves in excess of 3.5 billion barrels of oil equivalent. ExxonMobil has over the last 1 years in particular actively explored in the deepwater blocks of the Norwegian Sea and around existing infrastructure in the North Sea and the Halten Bank. This exploration program and participation in over 1 wells has resulted in finding more than 1 billion net barrels of oil equivalent, emphasizing the value of having a diverse portfolio of frontier and mature area opportunities. This success is due to the application of state-of-the-art exploration technologies, a very high-quality and highly trained local staff, and access to ExxonMobil s technical expertise on a global scale. The 24 Exploration activities included the award to ExxonMobil of operatorship and 3 percent equity in a new license (PL315), as part of the 18th Licensing Round. The license is located in a little explored area of the Egersund Basin in the southern part of the North Sea. The first well in the PL315 exploration program is scheduled for the fall of 25, the outcome of which is eagerly awaited. We were also awarded equity in two licenses in the 24 APA round (Awards in Predefined Areas). ExxonMobil drilled one exploration well in 24, which yielded a small discovery. ExxonMobil is continously mapping available areas in the North Sea, the Norwegian Sea and the Barents Sea. We continue to show commitment to co-existence with all industries through flawless implementation of our exploration programs to ensure zero harmful impact on the environment. The company s performance on the NCS to date, coupled with its worldwide experience with environmentally sensitive areas, operating procedures and advanced technology, ensures that co-existence will continue into the future. ExxonMobil is the energy company with the highest R & D investments worldwide more than 6 million dollars per year. Our unwavering commitment to research underscores a fundamental belief that technology is absolutely vital to our effort to provide reliable and affordable energy supplies. The organization in Norway draws on ExxonMobil s technology, research efforts and experience gained worldwide. Examples are use of 4-D seismic to plan new Jotun wells, EMPower a highly advanced data tool for reservoir modelling, advanced extended reach, horizontal wells for increased recovery from Jotun and Ringhorne, etc. In Norway, our company in 24 provided funding for a total of 18 Norwegian R & D projects. OG21 (Oil and Gas in the 21st Century), is a major R & D initiative started by Norwegian authorities to develop new technology and new systems in support of continued production on the Norwegian Continental Shelf. In this program ExxonMobil has a leading role in the area cost-effective drilling. In 24, ExxonMobil participated in an OG21 project named the Smart Shuttle, which seeks to develop a rapid tractor system to facilitate workover in high-angle wells as well as data acquisition for reservoir management.

3 4 5 Production North Sea Production Effective January 25, ExxonMobil consolidated its production operations on the UK and Norwegian shelves into one production unit, operated from two locations, Stavanger and Aberdeen: North Sea Production (NSP). The unit is responsible for the ExxonMobil operated production on the Norwegian side: Ringhorne, Balder, Jotun, and Sigyn, and on the UK side: Beryl Area, multiple Southern North Sea fields, and the Sage gas plant. Production own operated fields Jotun The Jotun field is developed with two installations a wellhead/drilling platform, which produces to an FPSO. The field is located in the North Sea 2 km west of Stavanger. The average production in 24 was 19, barrels of oil per day. Jotun production has been in decline over the last years, leading to available production capacity. To utilize this capacity, Balder was linked to Jotun via a gas flowline in 23, while a portion of the Ringhorne production was linked to the Jotun FPSO through a pipeline in 24. During 24, 28, barrels of oil per day were sent from Ringhorne to Jotun for final processing and storage prior to being exported. Additionally, 2 mcfd were exported from Balder to Jotun for gas sales. ExxonMobil is the operator of Jotun and has 45% equity in the field. Other participants are Shell (45%), Petoro (3%) and Lundin (7%). Balder The Jotun installations The Balder field consists of a floating production and storage vessel (FPSO) and subsea production systems. It is located in the North Sea approximately 19 km west of Stavanger. During early 23, a portion of the Ringhorne field oil and gas was transported via flowlines to the Balder FPSO for processing and gas export. In October 23, Balder started gas export to the Jotun facilities for processing and export via Statpipe. Over the last years, numerous upgrades to the Balder FPSO process and compression systems have been made, resulting in significantly improved reliability. In 24, the combined average production processed at Balder was 77, barrels of oil per day. ExxonMobil has 1% ownership in the Balder field. Ringhorne The Ringhorne field development is located about 9 km north of the Balder FPSO and includes both a wellhead platform and subsea production facilities. The production is transferred to the Balder and Jotun installations for final processing, storage and unloading. The field began producing in February 23, and development drilling will continue through 26. The Ringhorne platform During 23, two new discoveries were made close to Ringhorne from the Ringhorne platform. The Ringhorne West discovery was developed in less than a year and is currently producing. The Ringhorne East discovery is being evaluated, and a Plan for Development and Operation (PDO) is planned to be submitted in 25. It is expected that production from Ringhorne will peak at over 8, barrels oil per day. ExxonMobil has 1% ownership in the field. Sigyn The Sigyn field, which is located in the Sleipner area in the North Sea, started producing in 22. The field consists of a 3-well subsea system connected to the Sleipner A platform. During 24, a project was progressed to tie in Sigyn into a lower pressure system on Sleipner, enabling increased recovery. ExxonMobil is the operator and has 4% ownership in the field, along with Statoil (5%) and Norsk Hydro (1%). The Kristin platform Production OBO ExxonMobil s production from fields Operated By Others (OBO) averaged 33, barrels of oil equivalent per day. In total, ExxonMobil has ownership interests in more than 2 producing fields on the Norwegian Continental Shelf. Two major new OBO projects were started up in 24; Sleipner West Compression and Sleipner West Alpha, both operated by Statoil and with an ExxonMobil equity of 32%. Several new major OBO projects are being progressed, including Volve (3,4% EM equity) Fram East (EM equity 25%) and Statfjord Late Life (EM equity 21%), for which Plans for Development and Operation were submitted to the authorities in early 25. Startup of 8 1 OBO projects including Kristin and Ormen Lange - are anticipated over the next two to three years. Operator EM % equity Brage Norsk Hydro 13,84 Fram Vest Norsk Hydro 25, Grane Norsk Hydro 25,6 Kristin Statoil 1,5 Mikkel Statoil 33,48 Njord Norsk Hydro 2, Ormen Lange Norsk Hydro/Shell 7,22 Oseberg Norsk Hydro 4,7 Oseberg South Norsk Hydro 4,7 Oseberg East Norsk Hydro 4,7 Sleipner East Statoil 3,4 Sleipner West Statoil 32,24 Snorre Statoil 11,16 Statfjord Statoil 21,37 Statfjord North Statoil 25, Statfjord East Statoil 17,75 Sygna Statoil 18,48 Tordis Statoil 1,5 Tyrihans, PL91 Statoil 33, Vigdis Statoil 1,5 Åsgard Statoil 7,35 Major OBO projects Startup Kristin 25 Ormen Lange 27 Statfjord Senfase 25/7 Tyrihans PL91 29 Skarv 21 Volve 25 Fram East 25

4 6 7 Refining and Logistics Marketing Safety, health, and environment ExxonMobil s refinery at Slagentangen, Vestfold, inaugurated in 1961, is located in a sheltered environment at the Oslofjord. The refinery processes crude oil into fuels for sea, land and air transportation, as well as heating products. Annual production capacity is 5.5 million tons of crude oil per year, which represents more than half of Norway s total consumption. The refinery converts crude oil, mainly from the North Sea, into most qualities of engine fuels and fuel oils. The lightest are propane and butane. Then follows petrol, aviation fuel, kerosine, diesel and light fuel oil. The heaviest product is heavy oil. In 22 a new diesel reactor was tied in and put into operation. With this new equipment Slagen is able to produce sulphur free diesel (less than 1 ppm sulphur) three years before this was a legal requirement. This is a prerequisite for modern, environmentally friendly cars with catalyst treatment of exhaust gases. Around 6% of the refinery production is exported, qualifying the refinery as one of the largest export companies of mainland Norway. All crude oil and around 9% of the total production is offloaded/loaded at the jetty which can receive ships up to 25, ton deadweight. Annually, around 8 ships call on the port. Slagentangen also houses the Supply, Transportation and Distribution (STD) section in charge of all ExxonMobil s trade of crude oil and petroleum products both refinery production and production from the fields in the North Sea in addition to managing major storage terminals situated around the country. ExxonMobil markets products both under the Esso and Mobil brands through a chain of 33 petrol stations all over Norway. ExxonMobil s overall market share for petroleum products is 21%, the share for petrol being 22%. A speciality chain has been established under the name On the Run, and the first station of this concept was opened in Vestby, Akershus, in 21. As of July 1, 25, a total of 3 On the Run stations have been opened. The initiative signifies that ExxonMobil is expanding the selection of goods available at its gasoline stations groceries and light meals. ExxonMobil s sale of products outside the gasoline stations is partly based on direct sale to customers and partly through dealers and sales distributors. The main products are fuels for land, sea, and air transportation, heating products and lubricants as well as special products. Safety and health ExxonMobil in Norway has worked to create an environment where people care about and help each other to achieve a common goal Nobody Gets Hurt. We have thus established and visualized an important principle in our safety work all injuries and incidents can be avoided. We are particularly pleased that our base operations have had 16 years without any lost time incidents and that no employees or contractors in the upstream or at the Slagen refinery incurred any lost time incidents in 24. Neither have we had any lost-time incidents due to job related illnesses. We believe that continuous focus on safety is necessary to reduce the number of both major and minor injuries. Environment Environmental Managment The petroleum activities both onshore and offshore must be undertaken within the framework of a sustainable development, and in a manner that ensures coexistence with other interests, including the fisheries. To meet these challenges, the environmental program of ExxonMobil in Norway is fully integrated in the planning and execution of our activities. The environmental management system, which is aligned with the international standard ISO 141, is designed to ensure systematic and continuous improvement within the environmental area. Overall environmental objectives include: zero-acute pollution achieving a zero harmful discharge level to sea by year 25 reducing emissions to air minimizing the amount of waste and the risk of undesirable incidents contributing to environmentally related research striving for an optimally efficient use of energy. To achieve the goal that nobody gets hurt, we will continue NOK 12 NOK 1 NOK 8 NOK 6 NOK 4 NOK 2 NOK Price structure 1 litre unleaded 95 octane gasoline (May 25). (Pump price NOK 1,5 per litre) NOK 2,11 VAT NOK 4,81 Gasoline and CO2 tax NOK,36 Dealer gross margin NOK,88 Esso NOK 2,37 Intern. product price working systematically to make sure that we all have the same attitude regarding working safely. ExxonMobil also has programs for continuous reduction of exposures impacting health, including exposures to chemicals and noise, ergonomics, and psycho-social impact. The ExxonMobil employees in Norway have achieved a low level of sickleave. In 24, the sickness absence was reduced to 2.3 percent, which is somewhat lower than the year before. In comparison, the general sickness absence in Norway was 7. percent in 24. Slagentangen Total taxes to the State constitute 66 percent of the retail price.

5 8 9 Safety, health, and environment Activities and results Exploration & Production 24 Produced water On the Balder, Ringhorne and Jotun fields, 77% and 53%, respectively of the produced water volumes were injected in CO2 and NOx Total emissions of CO2 and NOx to air have remained at a stable level over recent years. In 23, the Ringhorne field was Activities and results Refining 24 A series of measures reducing discharges to sea have been implemented at the ExxonMobil operated fields. Injection of produced water from Balder, Jotun and Ringhorne contributes significantly to reducing discharges to sea. Furthermore, Jotun and Ringhorne have been designed with solutions for discharging drilling waste through injection. Combined with focus on chemical reduction and by substituting environmentally harmful chemicals with more environmentally friendly alternatives, it has been possible to reduce environmental risks related to discharges to sea. On the Ringhorne platform a number of technological 24. The average oil content in produced water has continuously been reduced since year 2. In 24, the annual average was 16 mg oil/l water for all fields. mg oil per litre water (ppm) Produced water (all operated fields) % injection 52% 47% 57% 55% 6% % emissions 48% 53% 43% 45% 4% started up, and in the following year, the Ringhorne Jurassic project was completed. Data from 23 and 24 therefore include emissions from both these development projects. CO2 (all operated fields) Emissions (tonnes) Flares (tonnes) Power generation (tonnes) Sulphur-free diesel The refinery delivers eco-diesel in all qualities, including almost sulphur free eco-diesel with less than.1 percent sulphur content. Environmental performance All emissions to air and water in 23 and 24 were within the refinery s discharge permission limits. Unfortunately, we had one acute discharge of oil to the ground in the refinery area in 24 due to a pipeline leak. Inspection and rehabitation of pipe systems on the quay and in the tank park A comprehensive work program with risk assessment, solutions have been implemented to reduce emissions to air in addition to discharges to sea. Measures include amongst others, closed flare during normal operations and power generation by means of one low-nox turbine, in addition to two conventional turbines. ExxonMobil is co-operating with other operators to ensure efficient reduction of non-methane volatile organic compounds (VOC) emissions from shuttle tankers. In addition, installation of VOC reduction facilities have been Chemicals Total discharges of chemicals to sea from ExxonMobil s drilling and production activities constituted just below 8. tons in 24, of which water and green chemicals represented more than 99%. Green chemicals are chemicals that occur naturally in seawater, or are considered to have minimal environmental effect. Emissions (tonnes) NOx (all operated fields) Flares (tonnes) Power generation (tonnes) inspection and rehabitation of the pipe systems has been ongoing since 21, and it is planned to be complete by 27. The program is expected to cost NOK 75 million. Energy and climate gases International comparisons show that the ExxonMobil refinery at Slagentangen has been among the most efficient in the world in terms of energy use. Since the beginning of the 199 s, the refinery has implemented internal measures to save energy, and the use of energy today is 22% more completed on the Balder and Jotun production ships. Discharge of chemicals 24 (all operated fields) Green 28,2% Yellow,4% Red,2% Black,13% Water 71,2% VOC The emissions of volatile organic hydrocarbons (VOC) from ExxonMobil s total operations have declined compared to efficient than it was in 199. The reason why CO2 emissions nevertheless have increased over this period, is due to new environmental requirements to products, i.a. increased desulfurization. Furthermore, the refinery has increased its treatment capacity for crude oil. previous years. As a result of major facility upgrades to install VOC recovery equipment on the production ships as Green chemicals: Pose Little Or NO Risk upon discharge to the Marine environment (PLONOR) Yellow chemicals: Environmentally acceptable well as on shuttle tankers, substantial cuts in VOC emissions are expected in the coming years. If you wish to get more information about environmentally Red chemicals: Prioritized for substitution related activities at Slagen, go to our link on the Internet page Black chemicals: Discharge permit only granted upon specific conditions 25 nm VOC (all operated fields) or call the Slagen refinery and ask for the 2 report Miljø og Samfunnsansvar statusrapport for Tonnes ExxonMobil raffineriet på Slagentangen 23/24. This report includes discarge figures for 24 and more information on some of the plans for reducing emissions.

6 1 11 ExxonMobil s contribution to society Each year the company contributes to the society in many ways. We invest, create jobs, transfer knowledge and provide development opportunites to local companies. Furthermore, we pay taxes and contribute directly to local communities through support of sports activities, culture, education and social activities. Below is a description of some activities that have received our support recently: Focus on learning by playing ExxonMobil has contributed to imparting knowledge about oil and gas, energy, and the environment especially aimed at young people through two interactive games. These games were first used during the oil exhibit ONS in Stavanger in 24 and later donated to the Norwegian Museum of Science and Technology in Oslo and to the Norwegian Oil Museum in Stavanger. One of the games, the Energy Balance, aims at teaching you how to provide a country (similar to Norway) with sufficient energy within a limited budget and strict envirionmental regulations. The other game is a quiz to test knowledge about energy, environment and technology. In this way the company hopes to raise the curiosity and interest among youth for science subjects. ExxonMobil has been a main sponsor of the Norwegian Museum of Science and Technology since year 2, and we have also contributed substantially to establishing the Norwegian Oil Museum in Stavanger, as well as making yearly grants to this museum. Furthermore, we have supported the establishment of a new exhibit at the Lofoten Aquarium in Kabelvåg, focusing on the co-existence between oil, fish and the environment. Youth testing their energy-knowledge. Education/Environment The company has over many years supported Rogaland Arboretum in Sandnes municipality. In 23, we contributed to creating an educational kit in the arboretum for primary schools. In 25 we will further this contribution by supporting a nature fact pamphlet for educational purposes. ExxonMobil also gave financial support to building a bird observation tower at Stokkelandsvannet in Sandnes municipality. This is part of a municipal environmental project which will be used for educational purposes. Sport and culture ExxonMobil supports small and large projects within sports and culture both in the local environment and nationwide. The philosophy is not only to support the elite and top performers, but also the amateurs. Here are some of the activities we have supported recently: ExxonMobil is the title sponsor of the Bislett Games. It is the 18th time the company has sponsored the Bislett Games, making it possible for the Bislett Alliance to arrange this prestigous Golden League meeting in Oslo. The Golden League arrangement is an important sports event in Norway, contributing substantially to the interest for athletics in the Oslo area as well as in all of Norway. To support the recruiting to athletic sports, the company is also the main sponsor of Skjalg Friidrett in Stavanger and Sandnes Idrettslag, focusing mainly on recruitment and work with promising young athletes. In the area of soccer, ExxonMobil supports the first division team FK Tønsberg, and it is also one of the main sponsors of Klepp s ladies soccer elite division team. Furthermore, the company supports a girl tournament arranged by Klepp the biggest of its kind in Rogaland. Molde International Jazz Festival is the most prestigous of the Norwegian jazz festivals. In 25, we will mark our 22nd year as main sponsor of this festival. On a local level, we support seven Stavanger Cathedral Choirs as well as the Kristansund Opera which we have sponsored for more than 1 years. Higher education ExxonMobil has over many years awarded prizes for the best thesis for the doctorate at NTNU, both within basic research and applied research. The first university in Stavanger was accredited in 25. ExxonMobil donated the Headmaster s silver and gold Chain of Office designed by local artists. It was worn by the Headmaster for the first time during the university opening ceremony in January 25. ExxonMobil s managing director Kathy Pepper and headmaster Ivar Langen during the official opening of the University of Stavanger on Monday 17th, 25. Bird observatory tower Furthermore, the company has supported publishing a brochure featuring hiking areas in Sandnes municipality. In 25 this brochure will be distributed to all households in Sandnes and neighbouring municipalities.

7 4 years Anniversary on the Norwegian Continental Shelf On 17 August, 1965, the Norwegian authorities awarded the three first licenses on the Norwegian Continental Shelf - PL1, PL2, and PL3 to ExxonMobil. In 25, the company can thus celebrates 4 years Anniversary as a license owner in Norway. Print: Bryne Offset ExxonMobil started its operations in Norway in the early 189 s as a marketer of petroleum products. We established Norway s first refinery at Valløy in 195 and commissioned the existing Slagen refinery in We kept up our pioneering tradition by spudding the first well ever on the Norwegian Continental Shelf in July The company s expertise and world wide experience was highly appreciated by the Norwegian authorities, who charged ExxonMobil with the task of transferring technology and professional training to Statoil and Saga during establishment of their new organizations in the 197 s and 8 s. Mobil, which joined Exxon to become the Exxon Mobil Corporation in 1999, discovered Norway s largest oil field to date, the Statfjord field in 1974, the same year in which Esso discovered Odin, Sleipner West and Balder. Our recent achievements and progress plans are described in detail inside the brochure. ExxonMobil is a long term player on the Norwegian Continental Shelf. Over the last 15 years we have invested close to 6 billion NOK on average per year in Norway. Our company has a long tradition of making a positive contribution to the communities and economies in which we operate. In the area of sponsoring, our particular focus is on youth and education, as well as sports and culture. Ocean Traveler spudding the first well on the the Norwegian Continental Shelf. ESSO NORGE AS An ExxonMobil Subsidiary FORUS Grensev. 6 Postboks Stavanger Tel.: OSLO Drammensv. 149 Postboks 35 Skøyen 212 Oslo Tel.: SLAGEN Postboks 21 Postterminalen 313 Tønsberg Tel.: JUNE 25