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Challenges of the Barents

Steinar Njå Norwegian Petroleum Directorate

www.npd.no Content of Presentation

 Introduction  Strategies for the Norwegian  Status and challenges - Norwegian part of Barents Sea  Geological understanding  Development Technology  Environmental Impact  Cooperation  Internationally   Closing Remarks The Norwegian Continental Shelf Barents Sea • proven resources mainly gas • remotely from gas market - LNG • less developed infrastructure • moderate water depth (200-400m) • mainly gas- & condensate fields • deep water areas (300-2000m) Northern • giant oil & gas fields • well established infrastructure • tail production and satellite tie ins • moderate water depth (150-300m) Southern North Sea • giant oil fields (chalk) • mature infrastructure after 40 years activity • shallow water (70-150m)

30071_3 - 11.2001 - *04 - Hydro Media N-R Workshop 09 Norwegian Petroleum Administration

N-R Arctic Workshop 09 Norwegian Petroleum Directorate

 Subordinate to the Ministry of Petroleum and Energy (MPE)  Advisory body to the MPE  Exercise management authority  Established 1972 in Stavanger  220 employees; – engineers, geologists, economist etc  The Norwegian Petroleum Directorate will contribute in creating the greatest possible value for society from oil and gas activities by means of prudent resource management, based on safety, emergency preparedness and safeguarding the . Resource overview as of 31 December 2008

 Total resources approx. 13 billion Sm3 o.e. (82 bboe) Range of uncertainty (10-16 billion Sm3 o.e. (63 -100 bboe))  5.1 billion Sm3 o.e produced  3.4 billion Sm3 o.e. undiscovered  60 fields in production  11 fields being developed  73 discoveries Petroleum production Production forecast Main elements of a long-term strategy

Five important challenges regarding resource management: 1. More resources from existing fields 2. Increase production of gas, but also taking care of the oil/gas balance 3. Discover new resources – access to exploration acreage 4. Co-existence on the sea

5. Decrease the emissions of CO2 OG 21 - Norway’s National Technology Strategy

1. Environmental technology for the future 2. Exploration and reservoir characterization 3. Enhanced recovery 4. Cost effective drilling and intervention 5. Integrated operations and real time reservoir management 6. Sub sea processing and transport 7. Deep water and sub sea production technologies 8. Gas technologies

N-R Arctic Workshop 09 Source: Norwegian Research Council Reducing the CO2 emmission Reduced Flaring Electric power from shore

Energy Efficiency Offshore CCS (Emissions of CO2 per produced unit) Distribution of the undiscovered resources

20.4 Bboe

30% 35%

35%

North Sea Norwegian Sea Barents Sea New discoveries 2008

02.07.200913 Southern Barent Sea Wells drilled in 2008 – planned wells 2009

PL 394 PL 395 (StatoilHydro) PL 228 (StatoilHydro) 7224/6-1 ”Arenaria” 7226/2-1 ”Ververis” (StatoilHydro) 2008 7222/6-1 S ”Obesum” 2008 2008 PL 228 (StatoilHydro) 7223/5-1 ”Obesum” appr. 2008 PL 228 (StatoilHydro) 7222/11-1 ”Caurus” 2008 PL 393 (StatoilHydro) 7125/4-2 ”Nucula” appr. 2008 2008 PL 489 () 7120/12-5 2009 PL 110 C PL 229 (StatoilHydro) (Eni) 7123/4-1 S & A Tornerose appr. 7122/8-1 S 2008 Vadsø ”Goliat Nord” 2009 . Alta APA box Dry well Tromsø Licenses Gass discovery Announced blocks 20th round Oil discovery Petroleum activities will not be started Spudded or planned well 02/07/200914 New petroleum activities will not be started Exploratory drilling not allowed Harstad between 1 March- 1 August PDOs 2009 Snøhvit LNG

140 km multi phase CO2 injection flow line

Source: Statoil Goliat

17 02.07.2009 Integrated Management Plan and Barents Sea seismic acquisition by NPD 2007 - 2009

2008:  2D and 3D data acquired 2009:  2 - 3D vessels  6 weeks (close dialogue with the fisheries organisations)  Areas to be decided  Research on scaring effects 2010:  Conclude new mapping of the resource potential in Nordland VII and Troms II  Revision of the management plan

18 7/2/2009 Coexistence at sea

 The petroleum activities and fisheries have existed side by side for many decades  Conflict level has escalated in the last couple of years  Joint report from the Directorate of Fisheries and the Norwegian Petroleum Directorate proposes measures to improve coexistence

02.07.200919 Challenges in the Arctic  Main challenges  Environment, Fisheries, Logistics, Distance, Remoteness, , Darkness…  Area management plan as basis for new conditions applied on the petroleum activity  Among the strictest environmental regimes in the world  Petroleum activity calls for new technology  New technology is the key to developments in the area  land-based facilities  Sub-sea installations  The Norwegian petroleum cluster has an opportunity to take a central role in the development  Our environmental expertise  Our competence in sub-sea development  Our knowledge regarding long distance transport of oil and gas  Developing the resource potential in the Arctic will demand substantial R&D effort in the years to come.

N-R Arctic Workshop 09 Cooperation in Northern Areas

N-R Arctic Workshop 09 Arktisk Råd Arctic Senior Council Arctic Ministermeeting Officials SAO

ACAP AMAP EPPR Arctic SDWG CAFF PAME Arctic Emergency Contaminants Sustainable Conservation Protection of Monitoring Prevention, Action Development of Marine and Preparedness Program to Working Arctic Flora Environment Assessment and Eliminate Group and Fauna Programme Response Pollution of the Arctic Alaska Canada

Russia Greenland Denmark

N-R Arctic Workshop 09 Energy Dialog Authority Cooperation Norway - Russia

 Between the Norwegian Prime Minister and the Russian Federation President. Signed by Mr Bondevik og Mr Putin i Moscow 20. juni 2005.  Based on the Energy Dialog on the Ministry level between the two countries from 1992.  Developed and enhanced in 2002/2003  Focus on energy in general and specifically on oil and gas in the . Norwegian – Russian Energy Dialog Basis for existing Cooperation

1. Norwegian-Russian Program on Energy and Environment between RF Ministry of Energy and Norw. Ministry of Petroleum and Energy Signed in Moscow April 8th, 2002

2. Cooperation Program on Norwegian-Russian dialoge concerning Natural Resources and Environment between RF Ministry of Natural Resources and Norw. Ministry of Petroleum and Energy Signed in Stavanger August 28th, 2002

N-R Arctic Workshop 09 RUSSIAN SHELF

North Sea Barents Sea

Yamal St.Petersburg VSEIGEI - Geology Kh- VNIIO Man. East - Geology/Envir.Moscow Sibiria SevmorgeoMIE/MNR - Geology/Envir.Rosenergo/Rosnedra/ Tyumen Rosprirodnazor URN/SibSAC -Res. Class -Res. class Novosibirsk -Geology(GeoGroup) -Res. valuation SNIGGINS -Envir. (EcoGroup) -Data mgt -Fiscal system -Data mgt -IOR -Res. class -IOR -Flaring -Res. valuation -Data mgt

N-R Arctic Workshop 09 Norwegian – Russian Energy Dialogue

Energy Working Group R&D Working Group

RAS RCN

Ministry of Ministry of Ministry of Ministry of Ministry of Ministry of Natural Resources Ministries Energy Econ. Dev. &Trade Petrol.& Energy Environment Labour & Integr. Environment

Rospri Rostekhnadzor Rosenergo Rosnedra PSA NPD SFT Agencies rodnadzor

MMBI PINRO VNIRO VSEGEI Akvaplan Veritas R&D Sevmorgeo VNIIO VNIGRI PMGRE CMR NGU NGI SINTEF Institutions

IRIS FNI SIGG&NR SibSAC MAGE

NTNU UiS UiO UiB Gubkin UoMo UoMu Universities

MGIMO UoA UoTy UiT UNIS N-R Arctic Workshop 09 Seminar, St. Petersburg 2003 Recommendations from St. Petersburg September 2003

The further steps necessary toward the improvement of the hydrocarbon resources management of onshore and offshore the Barents Sea are as follows:  Study of geological structures and modeling of hydrocarbon deposits  Environment protection and safety  Resources management  Improvement of regulations for underground resources exploration and development  Newest equipment and technology provision The Norwegian – Russian Energy Dialogue

Rospri Rostekhnadzor Rosenergo Rosnedra rodnadzor

Ministry of Ministry of Ministry of Natural Resources Energy Econ. Dev. &Trade &Environment Energy Working Group Ministry of Ministry of Ministry of Environment Petrol.& Energy Labour & Integr. MIE, MNR/MPE, MLI, MD

SFT NPD PSA Secretariate

Indutry Working Group R&D Working Group Working Groups Intsok/XXX RCN/RAS Geo Forum NPD, SFT, PSA / - PetroBar, etc Rospri, Rosnedra, Rosenergo Geolgy (PetroBar) Arctic Eco Forum Regulatory framework EOR - EcoBar Resource management Mat technology - SFT projects Ind. development north Arctic Geology/resources Resource Classification Environmental Impact Assessment Forum HSE Data Management N-R ArcticForum Workshop 09 Energy Dialog Russian – Norwegian Petroleum Authorities Geoscientific Cooperation Structure

Rosnedra Geo Forum NPD Steering Committee Russian and Norwegian: • Authorities • Institutions Geo Forum • Universities • Industry

Svalbard – GlaciPet GeoBaSe- PetroBar Franz Josefs land Project Project DEMOCEN

Other projects.. Signing of MoU - August 6th, 2008 at IGC

Anatoly Ledovskikh Bente Nyland Director General, Rosnedra Director General, NPD N-R Arctic Workshop 09 Благодарю за внимание!

www.npd.no

N-R Arctic Workshop 09