Classification: Statoil internal Status: Draft. Key Technology Challenges. Flow Assurance and Subsea processing



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Classification: Statoil internal Status: Draft Key Technology Challenges Flow Assurance and Subsea processing Presented by Pål P l Hedne

Technology Development in Statoil A 20-year History of Successful Technology Implementation 2 New technology Subsea & floating Åsgard Glitne Subsea to land Snøhvit Platform based Statfjord satellites Troll Norne 2001 2007 1999 Sleipner 1997 Statpipe Gullfaks 1996 1994 1986 1993 Significant step changes 1985 - Time

[km] Development of Statoil s s subsea systems 3 1000 900 800 3 rd generation 4 th generation Kristin Snøhvit 700 600 500 1 st generation Gullfaks, Tommeliten 2 nd generation Sleipner sat, Statfjord sat, Heidrun water inj. Yme, Norne, Lufeng, Åsgard, Gullfaks sat 2004-2005 2006/2007 400 300 200 100 1986-1990 1991-1995 1996-2000 Accumulated length of Statoil operated multiphase pipelines 0 Time

4 A global subsea position Subsea wells by major operator (Oct. 2005) Statoil developments (Nov. 2005) 541 Petrobras Statoil 284 350 185 Shell ExxonMobil 400 300 163 250 BP 157 200 139 Norsk Hydro Chevron 150 87 Kerr-McGee 81 Total 80 Talisman 100 50 67 0 0 100 200 Source: Infield System Ltd. 300 400 500 600 2005 2006 2007 2008 2009 2010

Operations in 30 countries 5 Mexico USA Venezuela Ireland Belgium Norway Denmark UK France Algeria Nigeria Sweden Libya Estonia Latvia Russia Lithuania Poland Kazakhstan Germany Azerbaijan Turkey Iran Saudi Arabia Qatar United Arab Emirates China Singapore Angola Brazil

6 Sub-ice operation Deep water Harsh environment Environmental sensitive Long to ultra long distances Ultra deep water Long tie-backs Benign to moderate metocean Technology stretch Areas Time & complexity Technology stretch to Innovation

Subsea Production Systems R&D Main Objectives 7 Increased and accelerated recovery Enabling long range well stream transfer Deep water production

Increased and Accelerated Recovery Priority Areas and Technology Elements 8 Increase fluid handling capacity Subsea separation and sand handling management Subsea water (re-)injection Power supply and distribution Reduced well head pressure Subsea pumping Wet gas compression Flow improvers Artificial lift Integrated operations Fibre optic sensor and data transfer Data integration Update of models for real time decision making Work processes for multi disciplinary operations

9 Deep Water Production Challenges Deepwater fields in harsh environments (500-2000m wd) Ultra deepwater fields in GoM, Brazil and West Africa (2500-3500m wd) Deepwater fields in arctic environments (200-1000m wd) Value creation Increase oil recovery Accelerate production Reduce # of drainage points Reduce cost Enable development options

Arctic Production Large Potential 10 Global undiscovered oil and gas resources Total: 1,634 bn boe Svalbard Rest of the world Shtokman Arctic Southern Barents Sea Pechora Sea Varandie North Africa, Middle East and the Caspian Snøhvit Melkøya Murmansk Source: USGS, World Petroleum Assessment.

11 Long Range Well Stream Transfer Produce anywhere in the Arctic by 2030 ÅSGARD KIRKENES MURMANSK MELKØYA NORDKINN SPITSBERGEN SHTOKMAN PECHORA SEA NOVAYA ZEMLYA VARANDEY KARA SEA YAMAL SNØHVIT

Arctic Field Development Ice Handling 12 Shallow water: Manage the ice Deeper water: Avoid the ice

The Flow Assurance Challenge 13 Flow Assurance Thermal issues Multiphase flow Hydrate Corrosion Wax Erosion Scale Sand production Asphaltene The ability to produce multiphase fluids from reservoirs to processing plants in an economically and technically feasible way

Multiphase Gas-Condensate Systems Liquid load Flow Challenges Boosting 14 pipeline liquid content (m³) 12000 10000 8000 6000 4000 2000 Equilibrium situation for steady state production Inlet pressure (bara) Total liquid content (m³) MEG/water content (m³) 130 120 110 100 90 80 Inlet pressure (bara) 0 6 8 10 12 14 16 18 20 Flowrate (MSm³/sd) 70

Multiphase Gas-Condensate Systems Fluid Challenges 15 Hydrates Low water production Fully inhibited system Depressurisation Corrosion Chemical inhibition ph stabilized MEG Concept: Bare carbon steel pipe lines Fluid temperature at ambient sea temperature Inspection pigging, only Broad operational experience Scale Chemical inhibition

Multiphase Gas-Condensate Systems Well Stream Transfer Length Boosting 16 Transfer length [km] 600 500 400 300 200 100 0 Shtokman Snøhvit 1985 1990 1995 2000 2005 2010 2015 Year Issues Gas compression Power supply Hydrate remediation Remote control Can in principle be stretched very long

17 Long distance multiphase transfer 250 Planned In operation red = Statoil operated Tyrihans Condensate-gas ratio (CGR) (bbls/mmscf) 200 150 100 50 0 Erskine Malampaya Popeye East Spar Mikkel Goldeneye Midgard Gorgon South Pars Snøhvit Mexilhao Ormen Lange Huldra Troll Scarrab-Saffran TOGI Canyon- Mensa Kvitebjørn Express Corrib Current operational experience 0 50 100 150 200 250 Transfer distance (km) Nam Con Son (2-P) (399)

Multiphase Oil Systems Flow Challenges 18 Boosting Dynamic Behaviour Pressure [bar] 150 140 130 120 110 Temperature 90 80 24 25 26 27 28 29 30 31 32 33 Time [h]

Multiphase Oil Systems Fluid challenges 19 Hydrates Corrosion Scale Wax Temperature! Emulsion Asphaltenes

Multiphase Oil Systems Traditional Pipeline Transportation Mode 20 Concept include: Fluid temperature above hydrate appearance temperature Isolation/heating necessary Injection of hydrate inhibitor during shut-down Wax control by regular loop pigging Current design < 50 km Future applications: Future applications: Possible extension to 150-200 km Direct electrical heating (DEH) Subsea separation and boosting

Multiphase Oil Systems Cold Flow Pipeline Transportation Mode 21 Concept: Fluid temperature at ambient sea temperature Extended water removal and traditional hydrate inhibition or Dry hydrate particle generation Bare carbon steel pipe lines Wax control Subsea pig launching No operational experience Future applications: Future applications: Can in principle be stretched very long Includes comprehensive subsea processing

Multiphase Oil Systems Well Stream Transfer Length 22 Transfer length [km] 600 500 400 300 200 100 0 DC power or Local power generation Tyrihans 1985 1990 1995 2000 2005 2010 2015 Year Issues Fluid conditioning Pumping Power supply Remote control Existing technology can be stretched to ~ 200 km Comprehensive step out to extend >> 200 km

23 Long distance multiphase transfer 1000 Planned In operation red = Statoil operated 900 Oil-gas ratio (CGR) (bbls/mmscfd) 800 700 600 500 400 300 200 100 Extended insulation/- heating solutions Cold flow Current operational limit 0 0 50 100 150 200 250 Transfer distance (km)

Enabling Long Range Well Stream Transfer Sub-sea power transfer and local power distribution Sub-sea field centre -separation -pressure support: gas lift and water injection -compression and boosting Long distance pipeline transport technology -multiphase fluid -oil dominated fluid The Arctic Challenge Sub-sea Gas field development current status/ambitions: Sub-sea Oil field development current status/ambitions: Ambitionby 2030, nolimit Ambitionby 2030, nolimit Ambition by 2010, 500km Ambition by 2010, 200km Currentlimit 140 km Currentlimit 50 km 1 2 3 4 24 Ship transport technology in ice -off loading -terminals and harbours 1. No ice coverage 2. Ice covered part of the year 3. Permanent ice covered 4. Partly/permanent ice covered and water depth < 50m Environmentally responsible operations

Subsea Processing Field Development of the Future 25 Remote control Power distribution Re-injection of produced water Separation, pumping, and compression Inspection and maintenance Wax and hydrate conditioning Subsea hub with spare processing capacity for future tie-ins of satellites

Statoil's first subsea processing application Lufeng 26 Lufeng 22-1 on-stream Dec 1997 5 horizontal production wells 5 subsea booster pumps 7 years of operational experience. A small field development with cost effective development solution Key data: Multipurpose shuttle tanker 333 m water depth 9000 bbl per day 75% Statoil / 25% NOOC

Tordis Subsea Separation, Boosting, and Injection 27 Worlds 1st commercial subsea processing plant to be started up in 2007 Existing Tordis subsea PLIM Features: Bulk water separation Multiphase boosting Water and sand injection Animation SSBI station WI Well

Tordis System Configuration 28 Design basis: Oil flow rate: 10000 Sm³/d Water flow rate: 24 000 Sm³/d Gas flow rate: 1.0 MSm³/d Sand rate: 50-500 kg/day Op. pressure: 25 bar Op. temp.: 75 C

TYRIHANS 29

30

31 Future subsea challenges and opportunities Arctic production: Stepwise Development 2020? Subsea compression plant Large step-out, large duty Snøhvit/Troll: 2015-2020? Subsea compression plant. Large step-out Åsgard: 2011-13 Subsea wet gas compressor 2 x 6 MW Tyrihans: 2009 Tordis: 2007 Subsea sep. 9 47 km step out Subsea raw seawater injection 9 Sand handling 2 x 3 MW 35 km step out 2 x 2,5 MW, 12 km 9Sanctioned

Future step changes Subsea System Development HV Power Local Power Generation DC 32 Sub-ice AC mod. AC 300 km 600 km 200 km 2010 2012 2015 2020 Time

Subsea Processing Status World Wide I 33 Boosting and injection ~15 pumps worldwide 0.4-1.8 MW (SPP and MPP) 2.5 MW at Tordis 2007 and Tyrihans 2009 MPP ΔP=30-40 bar, Q ~ 1500 m3/h Compression Åsgard 2011, 6-8 MW Ormen Lange 2014-2016, 12.5 MW Separation Water/oil, Troll Pilot 2001 Water/oil/sand, Tordis 2007 No compact equipment qualified subsea

Subsea Processing Status World Wide II 34 High power distribution ~10 km today Tordis 12 km 2x2.5 MW 2007 Tyrihans 45 km 2x2.5 MW 2009 Åsgard compression 47 km 1x6-8 MW 2011 Direct electrical heating Direct electrical heating ~10 km today Tyrihans 45 km 2009

The Way Forward is 35 Subsea Processing and Long Range Wellstream Transfer Fluid Conditioning Pressure Boosting Power Supply Prediction Tools Remediation Tools Production distance Gas dominated Oil dominated Comprehensive technology development needed next 10 years to extend technology to meet our business challenges

36 Welcome to Subseaville and thank you for the attention!