Piloting of New Technology for Deep Water Joint DEMO 2000 PROCAP 3000 Workshop Rio de Janeiro, 22 24

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Piloting of New Technology for Deep WaterJoint
DEMO 2000 PROCAP 3000 WorkshopRio de Janeiro,
22 24 March, 2004

• Morten Wiencke
• Program Director
• DEMO 2000
• www.demo2000.no

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DEMO 2000 Mandate

• Accelerate uptake and commercial use of new
  technology
• Share risk in piloting of solutions
• Provide testing ground for new products, systems
  and solutions
• Help new technology become qualified (Field
  proven) and competitive
• Important for deployment, use and export of
  Norwegian products

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Key Challenges - NCS
Barents Sea
Sensitive frontier regions HSE Standards Industria
l Infrastructure
Gas to Market LNG/ Grid
Deeper Water Reduce CAPEX
Norwegian Sea
Mature Areas, EOR/IOR Life of Infrastructure Produ
ced water
Stranded Oil Gas Small Fields Tail Production

• Demo 2000 Technology Areas
• Subsurface
• Wells
• Processing (Remote)
• Deep Water
• Gas Utilisation

North Sea
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Why New Technology?

• GROW RESERVES
• GROW PRODUCTION
• CUT COSTS

• ENABLING NEW RESERVES
• Go Deeper
• Further Away
• Subsea
• Seafloor to Shore
• 1000 - 2000 - 3000 m

• ENHANCING MATURE REGIONS
• Discover Recover More
• Produce Smarter and Faster
• At Less Cost
• And Less Environmental Impact

• MANAGING KNOWLEDGE
• Understand, Model, Simulate, Visualize
• Manage Technological Risk
• Share Learning Curves

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Ref. McKinsey study
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The pace of innovation in EP has been slow
relative to that in other industries
Average duration of the four phases in different
industries
Idea to prototype Prototype to field test Field
test to commercial Commercial to 50 penetration
Consumer products (US average)
Medicine (Merck- average)
ADSL (broadband telecom)
EP industry (15 tech. Cases)
0
5
10
15
20
25
30
35
Time (years)
Source McKinsey
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Technology Development Costs EP
UpstreamTypical Trends
100
70
Source S. Pai, SLB OTC 2003
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Focus and Approach

• Bridging RD Commercialization Gap
• Focus on Deployment of New Technology with
  Operators
• Accelerate Cost-Effective Technology - Deeper
  Water, Increased Recovery

2004
1999
2000
2001
2002
2003
Prototype development
Operators role Risk sharing Technology sourcing
Pilot projects demonstration

• NCS
• GoM
• Brasil
• Angola

Field development, exports
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Organization and Participation
Ministry of Oil Energy
Voting committee

• Executive Steering Group
• Contractors/Suppliers
• Oil Companies
• Research Institutions
• Observers (DOE, NPD, NRC)

Operators committee
Technical Management Committee
Norwegian Research Council
Expert groups
Demo- prosjekter
Demo- prosjekter
Demo- prosjekter
Demo- prosjekter
Demo- prosjekter
Demo- prosjekter
Demo Projects
Demo Projects
Demo Projects
Subsurface
Wells
Processing (Seafloor)
Deep Water
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Subsurface
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Downhole
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Seabed Processing
FMC Twister
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Deepwater Drilling Production
Risers
Subsea
AKER KVÆRNER TiRise
ABB L/W Comp. Riser
OPTOPLAN Fiber Optic Riser Instrumentation
AKER KVÆRNER IPU
Deepwater Composites AS CompRiser
FMC Integrated Subsea System
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Troll C Pilot

• Separation and Re-injection of Produced Water
• Main Suppliers ABB Offshore Systems, Framo
  Engineering
• Operated by Norsk Hydro

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Multiphase Boosting Transportation
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MultiBooster at Balmoral

• Aker Kvaerner MultiBooster
• Balmoral field
• Operated by Eni UK Limited
• Partners Talisman, Summit, Pentex Oil
• Project partners
• DEMO 2000
• Eni Norge
• Shell Technology Norway
• Norsk Hydro (Fram licence)
• Statoil
• Total EP Norge
• To be installed 3Q 2004

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Subsea to Beach Platformless Development Made
Possible
Wellstream transfer gt 200 km
Power Supply
Pumping/Compression
Processing
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Some Subsea Milestone Projects
Infrastructure Tie-backs
Subsea To Beach
Ultra- Deep
High Pressure And Temperature
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Global Technology Networking
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6th Call for Projects. Application Deadline
Monday, March 15, 2004

• The Demo 2000 program is an initiative supported
  by the Ministry of Petroleum and Energy (MPE) in
  order to ensure long term competitiveness in the
  oil and gas business and continued profitable
  development of the petroleum resources of the
  Norwegian Continental Shelf. The program also
  aims to develop innovative Norwegian industrial
  products, systems and processes for the global
  offshore market. The steering group for the
  program consists of representatives from oil
  companies, service industry and research
  institutes.
• Since its start autumn 1999, a total of 250
  million NOK have been awarded through 5
  application rounds within key technology areas
  (a) reservoir description and interpretation, (b)
  drilling and well technology, (c) seabed/downhole
  processing and multi-phase transport, (d)
  deepwater technology and (e) gas utilisation.
• To date more than 80 projects have been approved
  by the Steering Committee. The Demo 2000 support
  has triggered supplementary funding from oil
  companies and from the contractors themselves to
  a total funding in excess of NOK 1 Bn. More
  information about the program can be found at the
  website www.demo2000.no .
• In the national strategy for increased value
  creation in the petroleum sector, OG 21 (Oil
  Gas in the 21st century), oil companies, service
  industry, research institutes and the government
  have identified technology target areas that
  require technology development and collaboration.
  This strategy is summarised in a document
  (www.og21.org) that governs Demo 2000 and other
  research programs.

• The Demo 2000 Steering Group hereby announces a
  6th call for projects to close technology gaps
  within these key topics
• Subsurface Real Time reservoir management.
  Stimulated recovery. Seismic methods in
  exploration and production.
• Wells Cost effective drilling. New drilling
  concepts. Smart wells. Well intervention.
• Process Seabed/remote and compact processing.
  Long range multi-phase transportation. Seabed
  boosting. Platform free field development.
• Deep water Floaters for deep water or marginal
  fields. Mooring and risers. Subsea systems.
• Gas utilisation Competitive gas production and
  offtake. Gas conversion. Technology for
  independent development of marginal fields with
  associated gas.
• Technology and products that promote safe and
  environmentally friendly petroleum exploitation
  will be given special consideration in the
  evaluation of the applications.
• The projects shall address total solution
  concepts that, when implemented, will form a
  basis for new field developments on the Norwegian
  Continental Shelf. The projects shall apply to
  specific fields, as defined by oil
  companies/operators, at which more cost effective
  and environmentally friendly can be qualified in
  field trials. The application shall contain pilot
  demonstration of the technology in question.
  Details of further commersialisation plans,
  including first use by participating oil
  companies, are encouraged.
• The public funding in Demo 2000 is intended to
  trigger increased levels of development
  activities in the industry. Projects that can
  enable accelerated field developments will be
  prioritised. Through the Demo 2000 program, it is
  envisaged that new and more profitable technology
  will be verified and thereby contribute to
  increased confidence in cost and schedule of
  future developments on the NCS.
• An application will normally be submitted by a
  service company or vendor in collaboration with
  an oil company and possibly another company,
  research institute or university. A significant
  part of the project costs will have to be borne
  by the participating oil companies and the
  contractor. (The Demo 2000 share has on average
  been 25-30 ). The plan for such funding should
  be agreed between the participants prior to
  submitting the application. Support by Demo 2000
  is governed by guidelines for public funding in
  accordance with the EEA agreement.
• Project duration should not extend beyond
  year-end 2006.
• The Demo 2000 Steering Group has at its disposal
  an appropriation of 30 million NOK from the 2004
  State Budget.
• Deadline for submitting applications is Monday,
  March 15, 2004. Application forms and
  supplementary information can be obtained from
  the Demo 2000 web site, www.demo2000.no. Due to
  the involvement of international expert groups in
  the review of project applications, the
  application should preferably be submitted in
  English.
• The application should be sent as an e-mail
  attachment to tkl_at_forskningsradet.no and the
  original hardcopy sent by mail to
• Demo 2000

Subsurface Real Time reservoir management.
Stimulated recovery. Seismic methods in
exploration and production. Wells Cost
effective drilling. New drilling concepts. Smart
wells. Well intervention. Process
Seabed/remote and compact processing. Long
range multi-phase transportation. Seabed
boosting. Platform free field development. Deep
water Floaters for deep water or marginal
fields. Mooring and risers. Subsea systems. Gas
utilisation Competitive gas production and
offtake. Gas conversion. Technology for
independent development of marginal fields with
associated gas. Technology and products that
promote safe and environmentally friendly
petroleum exploitation will be given special
consideration in the evaluation of the
applications.
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Program

• Tuesday, 23 March, 2004
• Presentation/Review of Selected Technology
  Projects Mature for Piloting
• FMC Kongsberg Subsea
• Subsea Wireline Well Intervention System
• Seabed Separation System/Integrated Sand
  Management
• ABB Vetco
• Seabed Separation System (Troll Pilot, NUPROC)
• Composite Catenary Deepwater Riser
• RICTIS Coiled Tubing Subsea Intervention System
• Aker Kvaerner
• Composite Riser and Tether Technologies
• Subsea Boosting (GasBooster, MultiBooster) and
  Processing
• Odim Alitec
• Fibre Rope Deployment System for Ultra-Deep Water
• Framo Engineering
• WGC2000. Subsea Wet Gas Compressor
• AGR
• Riserless Mud Return System for Tophole Drilling

• Monday, 22 March, 2004
• Introductory Session (Plenary). Review and
  understand business objectives and technology
  needs of DEMO 2000 and PROCAP 3000.   1200  
   Lunch, Hotel Florida  1300    Introduction of
  participants             Workshop Objective  
  1330    PROCAP 3000 - Asset Needs and
  Technology Gaps               1400    DEMO
  2000 - Piloting of New Technology             by
  Morten Wiencke, DEMO 2000             1430  
   Coffee
• Technology Strategies and Capabilities (Plenary)
    1500    Oil Companies             -        
    Statoil             -           Hydro        
      -           Shell             -          
  Petrobras   1600    Suppliers/Contractors
  (Kvaerner, FMC, ABB Vetco, Framo Engineering,
  AGR, Odim)   1700    Adjourn 

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Presentation/Review of Selected Technology
Projects Mature for Piloting

• FMC Kongsberg Subsea
• Subsea Wireline Well Intervention System
• Seabed Separation System/Integrated Sand
  Management
• ABB Vetco
• Seabed Separation System (Troll Pilot, NUPROC)
• Composite Catenary Deepwater Riser
• RICTIS Coiled Tubing Subsea Intervention System
• Aker Kvaerner
• Composite Riser and Tether Technologies
• Subsea Boosting (GasBooster, MultiBooster) and
  Processing
• Odim Alitec
• Fibre Rope Deployment System for Ultra-Deep
  Water
• Framo Engineering
• WGC2000. Subsea Wet Gas Compressor

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