Offshore Forum Programme 2015

Offshore Forum Programme 2015 13.00 Welcome Søren Juel Hansen, Energinet.dk 13.10 Gas quality and the prospects of on/offshore optimisation Jesper Bruun, Energinet.dk 13.30 Gas quality and potential gas treatment at Nybro Peter Schroll Christiansen, DONG Energy A/S 13.50 Study on offshore electrification in Norway Morten Mønster, KPMG P/S 14.00 Electrification of the North Sea production Bjarne Brendstrup, Energinet.dk 14.15 Norwegian experience with electrification in practice Asmund Maland, ABB Norway 15.10 Norwegian tie-in by 2020 Jess B. Jensen, Energinet.dk 15.20 Baltic Pipe by 2022 Søren Juel Hansen, Energinet.dk 15.45 What measure of flexibility can onshore gas storage facilities offer? Hans-Åge Nielsen, Energinet.dk Gas Storage 15.55 Optimisation through technology Bo Cerup-Simonsen, Centre for Oil and Gas - DTU 16.15 End of programme 1

2nd annual Offshore Forum Maximising Off-Onshore Optimisation 1 September 2015 2

About Energinet.dk 02-09-2015 Energinet.dk 3

About Energinet.dk 02-09-2015 Energinet.dk 4

Electricity grid 02-09-2015 Energinet.dk 5

Gas grid 02-09-2015 Energinet.dk 6

In dialogue with all parts of the value chain Offshore Forum Focus on recovery maximisation North Sea Producers System Operators Stakeholders Authorities Shippers Forum Focus on whole sale gas market function Shippers Gas Suppliers Authorities and interest organisations Retail Market Focus on retail gas market function Distribution companies Interest organisations Authorities Industri Forum Focus on large consumers Industry users Large consumers Authorities and interest organisations Grøn Gas Forum (Green Gas Forum) Focus on making gas part of a more renewable Danish energy future Biogas producers Certificate holders Gas suppliers and distribution companies Authorities and interest organisations 7

02-09-2015 Energinet.dk 8

E.g. security of supply following from a Norwegian North Sea tie-in? 02-09-2015 Energinet.dk 9

E.g. energy efficency following from North Sea electrification? 02-09-2015 Energinet.dk 10

E.g. a sound investment climate for maximising Danish North Sea production? 02-09-2015 Energinet.dk 11

Large-scale investments - stable tariff 02-09-2015 Energinet.dk 12

Read more at energinet.dk 02-09-2015 Energinet.dk 13

Focus of Today Maximising Off-Onshore Optimisation 14

Focus of Today Gas Quality Optimisation what are the perspectives? Treatment can potentially be cheaper onshore Blending can potentially remove cost barriers Offshore Electrification is there a business case for it? Increase efficiency Provide more sale gas Future Perspectives for Off-Onshore Optimisation Prospects for a potential Norwegian tie-in and a Baltic Pipe? Gas storage flexibility Optimisation through technology 15

Gas quality and the prospects of on/offshore optimisation 1 September 2015 Jesper Bruun, JBR 16

Agenda Back Ground Gas Quality Data Method New Fields Results Summary and Perspectives 17

Back Ground Earlier study for Maersk about the possibility of using Energinet.dk s compressors on shore to lower the pressure in the off shore pipelines Energinet.dk presented the results at Offshore forum May 2014 In phase 2 the mixing of gas quality have been studied Focus on new and marginal fields Link: http://www.energinet.dk/en/om- OS/Konferencer/Sider/Off-shore-forum.aspx 18

Gas Infrastructure Source: Oil and Gas Production in Denmark 2013 Dato - Dok.nr. 19

Gas quality Focus on: Wobbe index (Safe use and operation at end consumers) CO2 (Integrity of infrastructure) H2S (Integrity of infrastructure) Relative density (Safe use and operation at end consumers) Assumption: limits as today (lower limit of wobbe at 13.9 kwh/nm3 for WI at Ellund Border for north bound flow). Component/ parameter Type of limit value unit value unit H2S max 5 mg/nm3 WI min 50.76 MJ/Nm3 14.1 kwh/nm3 max 55.8 MJ/Nm3 15.5 kwh/nm3 RD min 0.555 max 0.7 CO2 max 2.5 mole-% 20

Data Data from Wood Mackenzie/KPMG for expected production divided by fields for Danish off shore sector Period to 2023 with data on yearly basis. Gas quality: Historical data used for fields producing today For new and potential fields: Data book Own estimates 21

Method Model primarily based on flow scenario In the off shore infrastructure Modelling of the mixing of gas quality from all fields connected to DK via Tyra or Syd Arne pipelines. Assumption om at all amounts is delivered to DK. Yearly amounts for fields from data from producing fields. Gas quality can be chosen for each fields and can manually be altered the year. 22

Example on key issues High CO2 from e.g. the fields Luke and Elly High wobbe index in the fields in the sector most north close to Syd Arne. These fields will not be able to produce gas of sales gas quality without gas treatment or mixing. Source: Oil and Gas Production in Denmark 2013 Perspectives in the gas quality mixing. 23

Assumption Gas qualities Production for Luke and Elly moved back in time (from 2024 to 2020) The amount of associated gas for selected fields have been assumed to follow other fields In general gas is assumed to be delivered in the period of the analysis (optimistic). Example on a profile 24

Modelling of new fields Examples of background data and production profile Calculation and assumptions in orange New Fields Production split in percent Technical Technical Expected Depth to reserves production sea bed Reservoir sales gas reserves sales start (m) depth (m) (MMBOE) gas (Nm3) 2015 2016 2017 2018 2019 2020 2021 2022 2023 Field Solsort 2018 62 2900 0 0 20% 20% 20% 20% 10% 10% Svane* 2030 60 5600 83 12,985,814,880 0% 0% 0% 0% Broder Tuck 2019 45 3600 29 4,545,035,208 20% 20% 20% 20% 20% Hibonite 2018 52 4400 2 259,716,298 20% 20% 20% 20% 10% 10% Lille John 2019 44 900 0 0 20% 20% 20% 20% 20% Rau* 2022 48 2400 0 0 0% 0% 25% 25% Amalie 2027 66 5270 13 2,077,730,381 0% 0% 0% 0% Elly* 2024 40 3600 25 3,895,744,464 25% 25% 25% 25% Gita* 2029 62 5100 42 6,492,907,440 0% 0% 0% 0% Luke* 2024 40 4000 21 3,246,453,720 25% 25% 25% 25% Source: Wood Mackenzie/KPMG 25

Visualisation of key issues High CO2 content 26

Colour coding for the graphs Tyra pipe quality 27

Example of results 28

Perspectives Sensitivity analysis Different scenarios More and better data Gas quality data especially of off spec. gas Gas compositions Hydro carbon dew points Contaminations Operational aspects Peak values will to some extend be handled operational Possibilities of gas treatment at Nybro Gas Treatment Plant Amounts from Trym (Norwegian Sector) 29

Summary Positive synergies in solving key gas quality issues in the gas infrastructure Possible cost reduction due to less need for gas treatment Increased potential for development and production from marginal fields that may not be developed otherwise. Limitations Gas may not be delivered to the Danish market change mixing capacity Peak values and fluctuations not studied 30

Offshore Forum Gas Quality and Potential Gas Treatment at Nybro 1 September 2015 Peter Schroll Christiansen

Gas Quality and Potential Gas Treatment at Nybro DONG Energy s Gas/Oil Transportation Systems Gas export to market Lulita Trym Hejre Harald South-Arne Tyra East Tyra West Crude Oil Pipe Nybro gas treatment plant Fredericia Oil terminal and LPG fragmentation plant Oil and LPG export to market Aerial view of Nybro Gas Treatment Plant F3 DONG Energy s Gas Transportation System Gas Pipeline to be used in an Emergency Supply Situation Gas export platform Sub-sea tie-in to gas export platform 32

Gas Quality and Potential Gas Treatment at Nybro Mission: Mission, Vision and Strategy to provide cost efficient gas transportation and gas treatment from producing gas fields in the North Sea to the market. Vision: to support development of oil and gas reserves in the Danish sector and adjacent areas. Strategy: to attract tie-in of new gas fields to the upstream transportation system in order to keep unit costs modest. to provide gas treatment services at Nybro (either as back-up to offshore treatment or on a continuous basis) at competitive costs compared with similar costs offshore Pipelines: Available Assets i. Plenty of surplus transportation capacity ii. Nybro: Flexible tie-in options (either sub-sea or at existing platforms) Back-up gas treatment capacity on an intermittent basis: i. Hydrocarbon dew point adjustment ii. iii. iv. by means of cooling in a chiller system with subsequent incineration of extracted NGL s H 2 S cleaning by means of absorption by an amine with subsequent incineration of H 2 S CO 2 cleaning by means of absorption by an amine with subsequent emission to atmosphere Water dew point adjustment by means of absorption by glykol 33

Gas Quality and Potential Gas Treatment at Nybro Nybro: Available Assets (continued) Possible continuous gas treatment capacity: i. Hydrocarbon dew point adjustment ii. iii. requires investment in export of NGL s to the crude oil pipe for LPG fragmentation at the oil terminal in Fredericia, which has the capacity after the Hejre field gets off plateau production H 2 S cleaning requires investment in sulphur precipitation facilities CO 2 cleaning requires investment in convertion of a desulphurisation train into CO 2 cleaning Potential future continuous gas treatment capacity: i. Wobbe-index adjustment ii. requires investment in nitrogen injection facilities Other processes if demanded by the oil/gas industry Competitive advantages of Nybro gas treatment plant 1. The majority of the investments are completed and only smaller additional investments are required 2. The Nybro facilities are well preserved and has a long remaining useful life. 3. The running expenditures of operating and maintaining on-shore facilities at Nybro are considerably lower than operations off-shore. 4. The Nybro facilities have plenty of space for expansions with future gas treatment facilities. This may contribute to: A. extending the production life time of existing oil/gas fields B. the economical viability of developing new marginal oil/gas fields 34

Power from Shore Experiences from the Norwegian Shelf 1. September 2015

Key arguments for electrification of offshore platforms from shore is lower maintenance costs, better safety and lower emissions More sales gas Fewer emissions (CO2, NOx) Increased safety due to fewer ignition sources Lower maintenance costs Positive Experiences Higher utilization in energy production Better control and faster response Increased stability in the energy system - higher uptime Source: KPMG-analyse, ABB and BP 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 36

The desire to lower rising CO2-emissions and a high degree of authority involvement has been the key drivers for the Norwegian offshore electrification debate 1997: Kyoto Protocol: Norway will be allowed to increase emissions by 1% by 2012 compared to 1990. 1996: Stortinget adopts a law, which states that the operator must evaluate the possibility of electrification from shore on all field developments 2010: GDF Suez completes power from shore project on Gjøa 2000: The Bondevik government stats that it would be possible to reduce offshore emissions by 1.5 million. tonnes of CO2. The announcement has full support from Parliament 2014: Statoil starts the second phase of Troll A electrification 2015: Goliat will be partly electrified by ENI 2019-2020: Johan Sverdrup expected on stream with power from shore 1990 1995 2000 2005 2010 2015 2020 1990: Stortinget adopt a stabilization of emissions (at 1990 levels) by the year 2000. 2002: ABB is awarded the first power from shore contract, which gives them the responsibility to establish a solution for the Troll A-platform 2005: Power from shore to the Troll A platform is completed 2012: ConocoPhillips deselect electrification of Ekofisk from shore 2016: Martin Linge expected electrified with TOTAL as operator. 2013: BP completes electrification of Valhall Source: Regjeringen.no, Wood Mackenzie and KPMG-analyse 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 37

With the completion of power from shore to Johan Sverdrup and Utsirahøyden, 11 Norwegian installations will be partially or completely provided with power from shore Northern part of Norway Field Operator Production start Year of power from shore MW (peak) KM from shore Ormen Lange Shell 2007 2007 173 100 Snøhvit Statoil 2007 2007 152 (LNG onshore) Troll A Statoil 1996 2005 188 70 Gjøa GDF Suez 2010 2010 65 97 Valhall BP 1982 2013 45 (gns.) 292 Martin Linge Total 2016 2016 40 150 Goliat Eni 2015 2015 60 (gns.) 85 Johan Sverdrup 140 Statoil 2020 2020 127 200 Edvard Grieg Lundin 2015 2022 58 (inkl. Draupne) Ivar Aasen Det Norske 2016 2022 25 200 Gina Krog Statoil 2017 2022 25 230 180 Source: KPMG-redesign, NPD.no 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 38

Onshore processing facilities for subsea-installations with power from shore Ormen Lange/Nyhamna The onshore facility at Nyhamna receives natural gas for processing from Ormen Lange through 30 "pipelines. The gas is exported to the market in the UK through Langeled pipe via Sleipner platform. The plant treatment capacity is approximately 70 million Sm3 gas per. day The energy demand at max. production is 153 MW supplied from the power grid and 20 MW supplied from a gas fired boiler. CO2 and NOx emissions are estimated at respectively 52 000 tonnes and 88 tonnes. Snøhvit//Melkøya The onhore processing facility Melkøya receives natural gas from Snøhvit, Askelad and eventually Albatross for treatment through a multiphase 26.8 "pipeline. At full production, the plant supplies 5.67 billion. Sm3 LNG to market. CO2 from the wells is expected to be reinjected thus expected 23 million. tonnes of CO2 deposited over the field life. Energy demand is respectively 152 MW to three cold compressors driven by electric motors and 116 MW heat demand coming from 5 gas turbines. Emissions of CO2 and NOx emissions from the plant are estimated at respectively 860.00 tonnes / year and 635 tons / year (5 gas turbines). Source: Shell and Statoil 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 39

In the southern part of the Norwegian shelf, Valhall is the only platform that is provided with power from shore, while electrification of the Ekofisk field has been rejected Source: KPMG-analysis, NPD and Wood Mackenzie 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 40

Lessons learned in a Danish perspective 1 Power from shore to offshore platforms should be assessed in connection with the development solution for the platform - it should be seen in a 10-year perspective 2 Downtime, timing and complexity by replacing non-electric equipment made providing Ekofisk with power from shore not viable 3 The power from shore solution to Valhall is an interesting case in a Danish context due to comparable water depth, platform solution and distance from shore Source: KPMG-analysis 2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. 41

2015 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.

Socio-economic aspects of electrification Offshore Forum 2015 Bjarne Brendstrup System analysis 02-09-2015 Offshore forum 43

Main elements of the socio-economic analysis Electrification Direct gas usage 02-09-2015 Offshore forum 44

Socio Economics - Break-even - Illustration 12.000 Break-even - Capacity versus CAPEX 10.000 CAPEX, mio. DKK 8.000 6.000 4.000 2.000-0 50 100 150 200 250 300 350 400 Capacity offshore, MW 02-09-2015 Offshore forum 45

Identified Barriers Reliability and redundancy Financing of the installation Timing of the investments Quality of the gas Sale price of the gas Taxes and tariffs 02-09-2015 Offshore forum 46

Upcoming process Interview with stakeholders to identify the potential for electrification. Analyze the feasible technical solution and estimate whether such a solution is within the socio-economic break-even area. Then a further refinement of the socio-economic analysis. 02-09-2015 Offshore forum 47

Asmund Mæland, Group Vice President, Oil Gas & Chemical, Sept 1, 2015 Power from shore on the Norwegian continental shelf Energinet.dk

Why Power From Shore Avoiding emissions 20 % of Norway s greenhouse (CO 2 ) emissions comes from the Oil industry Significant contribution to fulfill international and national commitments if the best projects is electrified. Large point emissions Easier to remove CO 2 from these, then smaller emissions across industries Cost of owner ship Capex cost pr/yr (turbine vs el) Opex cost pr/yr (turbine vs el) Production value lost (due to outage/rebuild) Fuel value (gas vs el) CO2 tax Health Safety and Environmental impact No gas turbines will reduce risk Less helicopter transport No Noise pollution

Technology Selection: GT vs. AC vs. DC Power (MW) An Example of Economical Window of Opportunity for Power From Shore 2 AC Transmission DC Transmission Gas Turbines 150 km P < 100MW Distance (km)

Technologies for power from shore Three alternatives : AC has physical limitations (reactive power) Alternating Current (HVAC) Power system Onshore Cables Power distribution offshore Alternating Current (HVAC) with compensation Power grid Onshore Compensation Cables Power distribution offshore Direct Current (HVDC) Power grid Onshore ~ = Converter Cable Cable = ~ Converter Power distribution offshore

Energy efficiency & Power from shore Power from shore efficiency approx. 90% ABB Group September 2, 2015 Slide 52

Gjøa(Statoil) HVAC Cable (dynamic) 400 m depth 40MW, 100km In operation 2010 Goliat (ENI) HVAC Cable (dynamic) 400 m depth 60MW, 90km Martin Linge(Total) 145 kvac cable incl. fibre optic Lenght 170 km Design load 55 MW Troll 1+2&3+4 Troll, HVDC-Light Pre-Compressors 2x40MW, ca. 80 km, In operation 2005 2x50 MW, ca 80 km, In operation 2014 Johan Sverdrup (Statoil, Lundin,Det Norske) HVDC platform Hub 100-200 MW In execution Valhall Offshore and Onsore HVDC light station 292 km HVDC Cable, P= 78 MW

Troll A 1&2 and 3&4 Norway Customer: Statoil Year of commissioning: 2005 & 2015 Customer s need Enable power supply from mainland to platform to minimize emission of large amounts of CO2 and unnecessarily high fuel consumption ABB s response Turnkey 2x44 MW ±60 kv HVDC Light offshore transmission system Turnkey 2x50 MW ±66 kv HVDC Light offshore transmission system DC sea cables VHF (Very high frequency) motors Customer s benefits Lower CO2 emissions Better and safer work environment on platform ABB Group September 2, 2015 Slide 54

Troll A Electric Drive Systems Single Line Diagram pr. drive system 132 kv Switchboard Kollsnes station HVDC Light Rectifier Subsea Cable HVDC Light Cable Troll A station HVDC Light Inverter VHV Motor Compressor 70 km ±60 kv 44 MW 56 kv Gear ABB Scope

Module close up

TPC34 Project Haugesund June 2014

TPC34 Project Kollsnes October 2014

Gjøa Power from Shore 40MW @ 100km Shore 132kV Transformer Sub Sea Cable Transformer 11kV Supply 90kV Onshore Sub sea Offshore Tampen ÅTS Langeled Camilla&Belinda Vega Gjøa Florø Kvitebjørn Valemon Huldra Mongstad Hild Oseberg Oseberg Troll Sture Kollsnes

Dette billede kan ikke vises i øjeblikket. Dette billede kan ikke vises i øjeblikket. Dette billede kan ikke vises i øjeblikket. Qualification of Dynamic cable for Gjøa Configuration for Gjøa Long static cable Short dynamic cable Transition joint Dynamic cable in a configuration Transition joint

Johan Sverdrup first phase in execution

Hub solution implemented in Phase 2

Barriers Capex Manipulation of the capex calculation Fields in Production interruption of cash flow People Lets do it the old way «that works» See the whole picture e.g. energy efficiency Some people simply do not believe in «climate change» What has given success Pressure for reducing emissions, cooperation with environmental organization Beneficial life-cycle cost for redevelopment and greenfield projects, both in Norway and Middle East. Studies in Asia; China, Malaysia

Outlook - trends Market growing in Oil & Gas and wind connections around the globe Princess Amalie 120 MW AC Borwin 1 400 MW HVDC Dolwin Beta 900 MW HVDC Valhall 80 MW HVDC Safaniyah 340 MW AC Gjøa 40MW AC, 100km Troll 1-4 4 * 43/50 MW HVDC 2 * 20 MW AC Martin Linge 55 MW, 162 km AC Goliat 60MW AC 100km ABB Group September 2, 2015 Slide 64

Thank you for listening

Coffee break See you again at 15.10 02-09-2015 Offshore forum 66

Offshore Forum Programme 2015 13.00 Welcome Søren Juel Hansen, Energinet.dk 13.10 Gas quality and the prospects of on/offshore optimisation Jesper Bruun, Energinet.dk 13.30 Gas quality and potential gas treatment at Nybro Peter Schroll Christiansen, DONG Energy A/S 13.50 Study on offshore electrification in Norway Morten Mønster, KPMG P/S 14.00 Electrification of the North Sea production Bjarne Brendstrup, Energinet.dk 14.15 Norwegian experience with electrification in practice Asmund Maland, ABB Norway 15.10 Norwegian tie-in by 2020 Jess B. Jensen, Energinet.dk 15.20 Baltic Pipe by 2022 Søren Juel Hansen, Energinet.dk 15.45 What measure of flexibility can onshore gas storage facilities offer? Hans-Åge Nielsen, Energinet.dk Gas Storage 15.55 Optimisation through technology Bo Cerup-Simonsen, Centre for Oil and Gas - DTU 16.15 End of programme 67

Offshore Forum Norwegian tie-in by 2020 Jess Bernt Jensen, 1 September 2015 68

Security of Supply challenge after 2020 Supply from Nybro is decreasing as the North Sea production declines N-1 criteria: The EU Security of Supply (SoS) Regulation requires that in case the supplies from Germany fails another source must be able to substitute the missing supply and the North Sea can t alone Supply from Germany is increasing and is becoming the main supply source A Norwegian connection can solve the SoS challenge after 2020 69

Supplies to Denmark and Sweden after 2020 N-1 criteria: If supply from Germany fails, supply can be substituted by supplies from the Danish North Sea, storages and Norway X Main supply source 70

Norwegian Tie-in - where and how? 71

Norwegian Tie-in 1. 3 BCM Statpipe/Norpipe - Harald 2. 4-7 BCM North of Sleipner Harald/Tyra 3. 7-10 BCM North of Sleipner Nybro 72

Gassco Gassco will be asked to perform a feasibility study for a Norwegian tie-in in 2015/2016 73

Perspectives in a Norwegian connection Baltic Pipe 74

Baltic Pipe by 2022? Maximising Of-Onshore Optimisation 2nd Annual Offshore Forum 75

EU CEF support for a N-DK-PL feasibility Gaz System and Energinet.dk perform a feasibility study in 2015/16 Applied with the national Polish TSO Gaz System Supported by EU CEF programme Possible Mile stones, IF feasible - Feasibility study period 2015-16 - Business case development in 2016 20?? - Norwegian connection possible before 2020 - Baltic Pipe possible before 2022 76

5 Feasibility Study Activities 1. Market model analysis What is required? What can be achieved with a N-DK-PL? 2. Economic analysis Security of Supply effects? Price and market effects? 3. Technical solutions to Baltic Pipe and reinforcements 3 alternatives ranging from app. 3 10 bcm/y 4. Technical solutions to upstream tie-in (not supported by CEF) 5. Introductory dialogue with environmental agencies and stakeholders 77

Baltic Finnish gas market (8 bcm) Combined Polish-Nordic Gas market (22bcm) BEMIP demand 78

The simplest solution Norwegian Upstream Tie-in Baltic Pipe Transmission Interconnector 79

Many alternatives ranging from 3 10 bcm/y Sleipner / Draupner? Ekofisk? Harald? Tyra? Nybro? Egtved South of Køge? Avedøre? Baltic Pipe Niechorze Confidential Titel 80

The Tariff Pancaking Death R.i.P. Baltic Pipe 1998-2015 81

The Market Zone Alternative 82

Possible Gains from an Offshore Perspective Direct access to: Gas Storage Access 1 bcm on shore gas storage flexibility GTF Gas Transfer Facility Gas Point Nordic Trading possibilities +20 active traders +400,000 Danish Consumers Sweden, Germany and Poland Daily balancing? Maybe blending with Norwegian gas? Direct Consumer Access Export Markets Maybe lower tariffs?? 83

Offshore Forum Energinet.dk Gas Storage Hans-Åge Nielsen 84

Gas System 02-09-2015 Energinet.dk 85

Large and flexible Balances the system 1 BCM volume 16 MCM/day withdrawal rate 8,4 MCM/day Injection rate Full within day flexibility 86

Reliable and lifetime extended Single storage point - backed by two facilities Only 3-4 days of unplanned reduced capacity in 20 years NO un-planned complete shut downs Volume: 435 MCM 575 MCM In : 3,6 MCM/d 4,8 MCM/d Out : 8 MCM/d 8 MCM/d Both facilities top-sites are as new Wells in Lille Torup are being re-completed. All maintenance is done by or under supervision of the staff on site -> Very high in-house skills on all critical components 87

Regulated? Commercial? Yes! Regulated by EU and Danish law on un-bundling from production and trading TPA, transparency and non discrimination No price, tariff or income regulation No regulation on sales mechanisms, products, duration etc. No state subsidies We deliver flexibility to a price formula that is relevant for our costumers. = (,, ) We sell customized storage products with a flexibility and duration that suits our customers needs at the time they need it. 88

Energinet.dk Gas Storage: Call us. Hans-Åge Nielsen Business Development hni@energinet.dk /+45 23 33 87 07 Sales: Bjørn Denninger bde@energinet.dk / +45 23 33 87 95 Illana Nygaard iny@energinet.dk /+45 61 24 34 03 http://gaslager.energinet.dk 89

Increased Recovery in the Danish North Sea through Technology Innovation and Research Bo Cerup-Simonsen Center for Olie og Gas DTU

DHRTC Challenges and opportunities with urgency Source: OGD/Quartz&Co 2013 Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015 2 September, 2015

DHRTC Challenges and opportunities with urgency 1. Exploration 2. Access to marginal fields 3. Increased recovery from existing fields -- 1. Cost (OPEX and CAPEX) 2. Efficiency Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015 2 September, 2015

Centre Basics Background The centre is part of the Danish long-term national strategy on energy production. Objectives Research to identify and qualify new ways to enable increased oil and gas recovery in the Danish North Sea. Integration, alignment towards application. Attract and educate professionals to the industry. Resources 1 BDKK (~130MEUR) over 10 years, donation by DUC Data and interaction with DUC and other industry Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015 2 September, 2015

Technology management Maximize business performance by planning, implementing and monitoring/following-up of technology solutions OPTIMIZE CURRENT OPERATION PLAN IMPROVEMENTS BY TECHNOLOGY IMPLEMENTIN G/EXECUTING MONITORING FOLLOW-UP ASSESS BUSINESS IMPLICATION IDENTIFY TECHNOLOGY OPPORTUNITY ANALYSING & PLANNING TEST AND VERIFY TECHNOLOGIES 2 Septem ber, 2015 Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

DHRTC Research and technology maturation Hypothesis of increased recovery Innovation: Technology and services Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015 9/2/2015

Flagship Programmes Technology maturity path Reservoir Characterization EOR Drilling Production Technology Material Facility Offshore field implement ation Offshore pilot testing Industry as driver Collaboration with DHRTC Onshore pilot testing Prototype simulation model Lab experiment /testing Proposed pilot projects. Patents. Spin-offs. Industry cofunding. Progression on TRL scale PhDs. Publications. Citations. KPI Basic Research Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

Collaboration: From Idea Generation to Project Termination Other universities Partners Centre Core DUC/Maersk Companies Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

Processes. Management of Resources, Portfolio, Programmes, Projects 98 Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

Incremental improvements in the production system AND Radical Innovations Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

First Flagship Programme: Advanced Waterflooding in Dan, Halfdan, Kraka Objective: Increased recovery Graphics: SLB Status: First public version of Advanced waterflooding in Dan, Halfdan and Kraka to be released. Next: An underlying portfolio of projects to be defined across disciplines from reservoir to facilities. 100 Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

DHRTC status and 2015 plan Status 1 July 2015 Strategy v 1.0 established Centre Core established with 20+ employees Main processes established First Flagship selected: Advanced Water Flooding in Dan, Halfdan, Kraka Key activities Q3, Q4 2015 Projects for Dan/Halfdan/Kraka to established Flagship longlist being developed Partnerships with universities are being mobilized Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

DHRTC Application for tangible societal value New Science & Technology People in collaboration Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015 2 September, 2015

Started with a long way to go Centre for Oil and Gas - DTU, Technical University of Denmark 03 March 2015

Closing Thank you for participating today Please do not hesitate to provide: your feedback and your proposals to next steps to secure an appropriate off/onshore optimisation We look forward to hearing from you! Søren Juel Hansen +45 23 33 87 44 Martin Gram +45 29 49 42 66 1 September 2015 Offshore Forum 104