Statoils business area

Statoil module Field Development - MEK4450 - 2011 Magnus Nordsveen

Status: Draft

Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations Statoils strategy

2nd hour

Example of a field development

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Oil reserves 2006 (Source: Oil & Gas Journal)

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Alboudwarej et al. Highlighting heavy oil. Oilfield Review. 2006

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Proven Gas Reserves at end of 2004 (PESA news, August/September 2005)

Russia: 24% Iran: 16% Qatar: 14% . . . Norway: 1.6%

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Proven gas reserves are fairly concentrated

30 biggest gas producing countries shares of global proven gas reserves
100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0%
Middle East 40,9 % Sub-Saharan Africa 3,5 % North Africa 4,5 %

1,6%
Latin America 4,5 % North America 5,2 % Asia 7,1 % Europe 2,9 % OECD Pacific 1,8 % CIS 29,5 %

Source: Cedigaz

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us si a Ira Sa Q n u a U di A tar ni te ra d bia Ab Sta u- tes D h Ni abi Ve ge ne ri a zu Al ela In ge do ria ne sia Au Iraq st ra Tu li rk C h a m in en a is N tan or M wa al y ay s Ka E i a g za y kh pt st a K U uw n zb a ek it is C tan an ad a Az Lib N erb ya et ai he ja rla n nd s In d U ia kr Pa ai n ki e st Bo an li v O ia R ma om n an ia

but unconventional gas could change this picture

Definitions (1)
Oil in place: Total estimated oil in an oil reservoir

Oil reserves: Producible fraction of Oil in place

Recovery factor: Ratio Oil reserves/Oil in place

Average recovery factor in world for conventional oil: ~30%

Presently estimated recovery factor for Oil sand in Canada: ~10%

Current recovery factor from oil fields in Norway: ~47%

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Definitions (2)
Barrel of oil equivalent (boe):

Energy released by burning one barrel of crude oil: ~1.7 MWh ( 1 barrel ~ 159 litres = 0.159 m3)
Corresponds to about 165 m3 natural gas: ~1000 barrels

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Value of oil and gas

Price for 1 barrel oil: ~100$ Price for 1 boe gas (165 m3): ~50$ World oil reserves: 1200 Milliarder barrels World gas reserves: 1080 Milliarder boe
=> Value of oil is about 2 times value of gas (CAPEX & OPEX not included)

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Task and references

Task: Discuss uncertainties in reserves due to: recovery factor/enhanced oil recovery measurement/estimation techniques political factors etc.
References (internet): BP Statistical Review Oil and Gas Journal World Oil etc.

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Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations Statoils strategy

2nd hour

Example of a field development

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Statoils current operations

Present in 34 countries

Angola: Largest production outside Norway Russia: Development of Shtokman gas field Brazil: Peregrino production started (Heavy oil) Gulf of Mexico: Deep water gas and oil fields USA: Shale gas Skifer gass Canada: Oil sand UK: Wind mill farms

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Angola
Operated in Angola almost 20 years Partners in 8 producing fields Current: 170.000 boe/d Pazflor field started production this summer
(expected production of 47.000 boe/d)

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Russia

Partner in Kharyaga oil field

Currently 30.000 boe/d

Shtokman gas field development Partner in Phase 1 of development World biggest offshore gas fields (~3 times Troll field) 550 km from shore

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Brazil

Peregrino largest operated field outside Norway

Heavy oil
Two production platforms 30 production wells FPSO Total system simulation

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Gulf of Mexico
Partner in more than 400 licences Deep waters (2000-3000 m) Presalt (Large oil reservoir buried below thick salt layers) Viscous oil Currently low recovery (10-12%) Large challenges large potential

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Statoils key figures

Statoils production in 2010 was ~1.9 million boe/d

Oil: 1.121 million boe/d Gas: 0.767 million boe/d

Production from outside Norway: ~0.5 million boe/d ~50% of Statoils resource base is outside Norway

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Some more numbers

Oil and gas:

Snhvit gas reserves: 193 billion m3 gas Value = 290 milliarder NOK Ormen Lange gas reserves: 300 billion m3 gas Value = 450 milliarder NOK Aldous Major & Avaldnes: 500-1200 million boe Value = 250-600 milliarder NOK Troll gas field: 1300 billion m3 gas (biggest gas field on NCS) Statfjord oil field: 3500 million boe (biggest oil field on NCS)
New energy:

88 Sharingham Shoal windmills will produce each 3.6 MWh (~2 boe) can power 220.000
British homes

Statoils daily gas & oil production correspond to energy from ~40.000 windmills

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Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations Statoils strategy

2nd hour

Example of a field development

Status: Draft

Statoils strategy
1.
Maximise the potential on the Norwegian Continental Shelf (NCS)

2.
3.

Tie ins to existing fields/infrastructure

Increase the recovery (Subsea processing, etc) New independent discoveries (E.g: In Barents sea, Nordland)

International growth Conventional gas and oil Unconventional gas and oil

Increase our engagement in renewal energy

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Challenges
Find new oil and gas fields Enhanced recovery Smart wells (horizontal, zones, branched) Water/gas injection wells to maintain reservoir pressure ESPs (pumps in wells) Sub sea processing Transport Multiphase to receiving facility (floater/shore) Single phase to market Deep waters, Harsh environment, Arctic

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Tie backs to floater/shore:

Subsea production and long range multiphase flow transport

Oil reservoirs

Gas reservoirs

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Challenges
Viscocity pressure drop Why? Wax precipitation Depends on composition No problem for high GOR
gas condensate fields (Shtokman, Luva)

Hydrates (water + gas) ~20 oC at high pressures

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Gas condensate long range transport < 500 km

Challenges:

Pressure drop Liquid accumulations in inclinations at low rates Surges and slug catchers Hydrates (water+gas)

Rough seabed estimated pipeline profile

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Pressure drop liquid accumulation

High flow rate: Pressure drop is friction dominated Low flow rate: Pressure drop is gravity dominated due to liquid accumulation in
upward inclined sections of the flowline
250
Pressure drop Liquid content [m3]

45000 40000 35000 30000

150 100 50 0 0 5 10 15 20 Production rate [MSm3/d]

25000

Gravity dominated

Friction dominated

20000 15000 10000 5000 0

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Liquid content [m3]

Pressure drop [bar]

200

Task: Pressure drop calculation gravity dominated flow

Flow line over 100 m hill Holdup in uphill section: 30 % Holdup in downhill section: 0.3 % Density of condensate: 675 kg/m3 Neglect gas Neglect frictional pressure drop Find pressure drop between 1 and 2
1
2

Compare with single phase flow calculation

(100% holdup in upward and downward inclined sections)

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Oil field long range transport < 200 km

Currently < 50 km Challenges: Wax, hydrates Current solution: Keep temperature above hydrate temp.
(insulation or insulation + heating)

Pigging for wax

Future alternative: Cold flow Transport with particles without settling on wall/plugging

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Heavy oil transport < 50 km

Challenges: High oil viscosity and emulsions =>
Oil Viscosity (cp)
Athabasca Bitumen, Canada (8.6oAPI)
10000000 1000000 100000 10000 1000 100 10 1 0 50 100 150
o

High pressure drop

Viscosity is very sensitive to

temperature

Potential large problems during shutins

and cooldown

Current solutions for shorter distances: Production with large water cut (water
continuous oil/water mixture)

200

250

300

Temperature ( C)

Dilution with lighter oil Outcirculation with non viscous fluid

during shutins

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Tie backs to floater/shore:

Subsea production and long range multiphase flow transport

Oil reservoirs

Gas reservoirs

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Statoil New Energy

Offshore wind Carbon capture and storage

Geothermal energy, Biofuel and Hydrogen

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Stepwise development of new energy platform

Our main focus is on offshore wind power where we add value by using our extensive competence from offshore oil and gas activities

Sheringham Shoal Offshore Wind Farm Dogger Bank Asset for growth Hywind Proven floating wind mill concept
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Sheringham Shoal Offshore Wind Farm

Scira Offshore Energy Ltd. (Statkraft + Statoil) 50 years lease agreement with The Crown Estate

Sheringham Shoal Wind Farm

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Wind Farm Highlights

Project Highlights Installed capacity 317 MW 35 km2 wind farm appr. 20 km off the
coast Water depth 17m 22m 88 wind turbine generators, each 3.6 MW Start delivering power to grid August 2011

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Dogger Bank Asset for growth

DOGGER BANK KEY FACTS
Target 9 GW production, potential to increase to 13 GW Area: 8660km2 (3343 square miles) Distance from shore: 125-290 km (77-180 miles) Water depth: 18-63 m (59 to 206 ft) High wind speeds >10 m/s average wind speed across the zone

34 - Classification: Internal Status: Draft

2010-11-24

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Cost of Energy could reach grid parity in high cost electricity markets during the next decade

Potential for further cost reduction Lighter / cheaper turbines Mass production Supply chain development Improved installation methods

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References for Statoil

www.statoil.com Statoil in Brief: 2010/11 (brochure)

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Thank you

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