Åsgard Challenges and Opportunities

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1 Åsgard Challenges and Opportunities Mari Skaug VP Åsgard PTC Classification: Internal

2 Åsgard field overview Åsgard B Gas center Åsgard C Condensate storage Åsgard A Oil producer 40 km Midgard Gas Smørbukk Gas condensate and oil 10 km 10 km Smørbukk Sør Oil and gas condensate 40 km Mikkel Gas Owners Statoil ASA (operatør) 34,57 % Eni Norge AS 14,82 % Exxon Mobil E&P Norway AS 7,24 % Pipeline for gas export SPE paper Petoro AS 35,69 % 2 Classification: Internal Total E&P Norge AS 7,68 %

3 Where do we find Åsgard, Morvin, Mikkel og Yttergryta?

4 ÅSGARD PTC OPERATING FIELDS

5 Åsgard-feltenes utstrekning

6 Production started The first shipment from Åsgard A A lot of negative articles was published in the news about this hopeless project. Total Investment inkl. Kårstø and ÅT: 65 BNOK (Budget 48 BNOK) Harald Nordvik CEO in Statoil had to leave his position. Pay back: May 2003 During the first year we had 26 compressor changes! Classification: Internal

7 General Information History 1981 Midgard field discovered (Saga Petroleum) 1984 Smørbukk field discovered (Statoil) 1985 Smørbukk Sør field discovered (Statoil) 1993 Statoil and Saga Petroleum start co-operation for Åsgard field development 1995 Åsgard unit PDO application, unitisation of the Smørbukk, Midgard and Smørbukk Sør fields 1996 PDO approval and project initiation: Åsgard A contracts/construction start, Start predrilling of Smørbukk and Smørbukk Sør wells 1997 Major contracts for Åsgard B (field gas centre), Kårstø expansion, Transport pipelines th of May oil production started from Åsgard A (all gas re-injected) st of October started gas and condensate production from Åsgard B st of October started gas and condensate production from Mikkel by Sub Sea tie in to Åsgard (connection to Midgard Z-template) 2006 Production of Åsgard Blend started The product contains oil and condensate from Åsgard PDO approval Yttergryta (January 18th 2008) th of January started gas and condensate production from Yttergryta. Start up of Tyrihans gas injection November 1 st Morvin start up 1 st of August PDO approval for Åsgard subsea compression 2012 PDO approval for Smørbukk Sør Extension 2013 Discovery Smørbukk Nord, exploration well Disconnection of the tie-in field Yttergryta Gas injection in Smørbukk re-established (Dec 13)

8 Åsgard from discovery to development Discovery Midgard Smørbukk Smørbukk Sør Statoil office, Stjørdal 1988 Heidrun Operation, Stjørdal Åsgard Unitisation 1995 Midgard Smørbukk Smørbukk Sør Åsgard PDO approved 1996 Largest Largest floating platform Large area high complexity Åsgard development New technology Budget overruns Board of Directors and CEO had to resign 8 Classification: Internal

9 Åsgard in operation Åsgard A 1999 Midgard, Smørbukk and Smørbukk Sør Åsgard B 2000 Åsgard C 2003 Mikkel Yttergryta 2009 Tyrihans Morvin Smørbukk Nord-øst Smørbukk Sør Extension Ph Åsgard subsea compression 9 Classification: Internal

10 Technology Value Courageous creation step Improve recovery by 282 decission Recovery and lifetime for several gas millioner fields barrels can be oil prolonged equivalents significantly from Pioneering Mikkel work, and Midgard complex development and important step towards complete subsea factory 10 Classification: Internal

11 Technology Value Courageous creation step decission Improve 16,5 million recovery barrels from oil equivalents mature fields and prolong lifetime for Åsgard Strategic A important for access of new resources in low permeable reservoirs 11 Classification: Internal

12 Åsgard transport Morvin Smørbukk Åsgard C Yttergryta Åsgard B Midgard Åsgard A Smørbukk Sør Mikkel Kristin Tyrihans Åsgard transport til Kårstø 12 Classification: Internal

13 Large possibilities into the future beyond 2015 Ambitious IOR strategy Two examples on how an IOR measure, or Action, has been presented Classification: Internal

14 Large possibilities into the future beyond 2015 Low abandonment reservoir pressure Åsgard is on decline *Low pressure phase 1 implemented on Åsg A and B Lowering of abandonment reservoir pressure Largest IOR volume contributor High focus on way forward (how and when) towards low abondonment pressure in Åsgard reservoirs Projects ongoing on both Åsg A and Åsg B High complexity but many possibilities with Åsgard facilities * Low pressure phase 1 = revamp of compressors to achieve a lower inlet separator pressure 15 Classification: Internal

15 Large possibilities, but tough climb ahead Infill drilling 2500 m 4700 m 2nd 3900 largest m IOR contributor is infill drilling MD = m P = 500 bar T = 165 C Smørbukk MD = m P = 400 bar T = 140 C Smørbukk Sør MD = m P = 250 bar T = 90 C Midgard 16 Classification: Internal

16 Large possibilities into the future beyond 2015 Infill drilling Drilling infill wells actively pursuing the IOR ambition Different type of drilling challenges on the Åsgard fields Depth, zonation, pressure, temperature, GOR. 17 Classification: Internal

17 Large possibilities into the future beyond 2015 Infill drilling The Åsgard license has secured rig and intervention vessel (LWI) capacity for years ahead 18 Classification: Internal

18 Åsgard Still going strong by year 2030 Facilities for the future and technology push are key parameters. Secure future IOR and utilise Åsgard as a centre for 3rd party processing Facility for the future High complexity but many possibilities with Åsgard facilities Key parameters are: Life time, capacity, space and weight margin Technology push Something completely new, cheaper, smarter,.pursuing the IOR ambition 19 Classification: Internal

19 Åsgard Still going strong by year 2030 Facilities new additions Classification: Internal

20 Reserves development overview (as of RNB 2013) RF (%) Reserves (MSm3 oe) 100 (In-place) 820 ~ PDO reserves: 2247 Mmboe 355 MSm3 oe ~ ~ ~ Classifi 23 cation:

21 Åsgard Daily Production ( ) Max: 7 MSm3/d Max. gas capasity Åsg B: 48.5 MSm3/d Max injection: 21.2 MSm3/d Classifi 24 cation:

22 Classifi 25 cation: Åsgard Unit long term gas production

23 J-4 H S-1 H S-1 H P-3 H P-3 H P-3 H N-4 H J-4 H S-1 H N- 4 H J- 4 H J- 4 H Max daily production Max daily production on one well The Kings of daily oil production 1999: S-1 H, 2000: P-3 H 2001: P-3 H 2002: N-4 H 2003: J-4 H 2004: J-4 H : The cumulative production for P-3 H: 1.89 MSm³ oil! = ~1.1 Billion USD Classification: Internal

24 Båt Fangst Åsgard Reservoirs: Different stratigraphic & structural position Melke Garn Not Ile Tofte Ror Tilje Åre Midgard 2 3 Smørbukk Smørbukk Sør 4 Depth (km) 5 28

25 Åsgard Reservoir overview 300m 3900m 2500m 2500m 4700 m MD = m P = 500 bar T = 165 C GOR init = Sm³/Sm³ Smørbukk - 36 wells wells: 1-5 zones commingled MD = m P = 250 bar T = 90 C GOR init = 6500 Sm³/Sm³ MD = m P = 400 bar Midgard - 9 wells T = 140 C Garn, Ile and Tilje GOR init = Sm³/Sm³ Smørbukk Sør - 17 wells P+S: Garn only. Q: Garn+Ile+Tilje MD = m P = 250 bar T = 100 C GOR init = 2800 Sm³/Sm Mikkel - 3 wells wells: Garn + Ile

26 Classification: Internal Åsgard «hub» total: boed 12.6 % of DPN production Largest contributor in Statoil

27 Åsgard Petroleum Technology Field: Smørbukk Sør (part of Åsgard Unit)

28 Åsgard Petroleum Technology Field: Smørbukk (part of Åsgard Unit)

29 Åsgard Petroleum Technology (March 2014) Fields: Midgard (part of Åsgard Unit) Mikkel (subsea tie-in to Åsgard) Morvin (subsea tie-in to Åsgard) N Yttergryta Alpha Beta Gamma Midgard N Morvin Mikkel Smørbukk Delta S Morvin

30 General Information Reserves and licensees

31 Facilities Production facilities Åsgard B Åsgard A Crude oil storage: m 3 Dead weight: ton Length / width: 115 / 96 m Living quarter: 120 Normal manning: approx 59 Dead weight: ton Light weight: ton Length / width: 278 / 45 m Living quarter: 100 Normal manning: approx 43

32 Gas rate [GSm3/yr] Production Gas production, injection and export Gas production [GSm³] Gas injection [GSm³] Gas export [GSm³]

33 Liquid rate [MSm3/yr] Production Liquid production Smørbukk Sør Smørbukk Midgard

34 Reservoir information General production strategy

35 Intro produksjonsteknologi Åsgard Classification: Internal

36 Part of Haltenbanken Morvin Smørbukk Norne/Heidrun Transport Yttergryta Midgard Smørbukk Sør Mikkel Kristin Til Tjeldbergodden Tyrihans Nord Åsgard Transport Til Kårstø Tyrihans Sør 5

37 Åsgard Transport From Åsgard to Kårstø 707 km MSm3/d capasity Fields delivering to Åsgard Transport: Norne Skarv Åsgard Heidrun Kristin Njord Draugen 56 Classification: Internal

38 Classification: Internal Åsgard Daily Production ( ) Max: 7 MSm3/d Max. gas capasity Åsg B: 48.5 MSm3/d Max injection: 21.2 MSm3/d

39 Well interventions, Workover & completions IMR SCM / FCM Bullheading into well - Disolver - Scale inhibiitor etc. Comming in 2016 Drilling rigs New wells, Sidetrack and re-completions 5 Classification: Internal

40 Production challenges and opportunities Stimulation of low productivity wells fracturing in existing cemented liners Start-up and production of wells due to low reservoir pressure and/or high WC Minimum flow in Midgard / Mikkel loop High temperature (WL tractors, HNS perforation guns) Water detection and shut-off technology including annular flow Retrofit sand control screens (inside exisiting liner) Removal of sand fill Rig-site clean-up tracer technology Riser collapse Topside and subsea rate measurements Hydrate control 6 Classification: Internal

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