Facts 2002 the Norwegian Petroleum Sector

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Facts 2002 The Norwegian petroleum sector

Ministry of Petroleum and Energy

Visiting address: Einar Gerhardsens plass 1

Postal address: P 0 Box 8148 Dep, N-0033 Oslo

Tel c47 22 24 90 90 Fax +47 22 24 95 65

http://www.mpe.dep.no (English) http://www.oed.dep.no (Norwegian) E-mail: [email protected] Editor: Tore Fugelsnes, MPE English rditur: Rolf E Gooderhani Edition completed: March 2002 Iayout/design: Marketing Serviccs AS Illustration: Inger Farvik Photos: Q Terjc S Knudsen, Norsk Hydro ASA, 0 Oy-vind Hagm, Statoil ASA, field photos from operators’ archives. Paper: Cover: Munken Lynx 240 g. inside pages: Uni Matt 115 g. Printer: BK Vestfold Grafiskr Circulation: 14 000 Norwegian/Y 000 English ISSN-1502.5446 Foreword

Even after 30 years of petroleum production from terms of both maturity and challenges between its the Norwegian continental shelf (NCS), we estimate various areas. A broad spread of companies will help that only about 24 per cent of these resources have to meet the rnnltiplicity of challenges facing 11s. been produced. Remaining recoverable resources Wiile the oil majors are relatively well represented are put at 10.6 hn scm of oil equiv;rlent, and could today, small and mediurn-sized players have a provide the basis for another 50 years of oil produc- weaker involvement. The prequalification system tion and a century of gas output. The petroleum is a new and important measure, which will make sector will thereby remain a major source of value it easier for new players to become established on creation for the Norwegian community. the NCS. The average estimated recovery factor for Norway wants a stable oil market with prices Norwegian oil fields rose by alniost 10 per cent at a reasonable level. The market weakened from 1990 to 1997, hut has flattened out in recent considerably during 2001, with pressure on prices years at roughly 44 per cent. Considerable value expected to persist without action to cut the supply can be created through further improvements in of crude. On that basis, it was decided to reduce recovery. The government's aim is to achieve an Norwegian crude production by an average of 150 average recovery factor of 50 per cent for oil and 000 barrels per day from 1 January to 30 June 75 per cent for gas. These are very high proportions 2002. in an international context. The petroleum business is moving steadily Gas market developments are important for further north and closer to land. For this reason, the future level of activity and value potential on the govcrnmcnt wants to undertake an impact the NCS. A number of blocks in the current 17th assessment of year-round offshore operations offshore licensing round could yield large new northwards from the 1,ofoten Islands. A unified gas discoveries. Opportunities for finding gas in management plan for the Barents Sea is also to he the Norwegian Sea coincide well with the growth drawn up. This will help to secure the stability and in European demand for this fuel. predictability which the petroleum industry The transition to a new gas regime was one of needs. last year's challenges. Norway's Gas Negotiating Committee (GFU) system was discontinued with effect from 1 January 2002. A new system for gas administration, adapted to the new conditions, has accordingly been sought. I believe the Gassco company has every prospect of becoming a first-class operator, and will contribute to good utilisation and further development of the transport system to the benefit of offshore value creation. We also face changes in pipeline ownership. The Storting (parliament) has requested that a unified solution be sought for owning Norway's offshore transport system. This work is well in hand, and I look forward to early results. Einar Steensnzs The NCS is becoming more diver Minister of Petroleum and Energy

Contents

Foreword 5

CHAPTER 1 -Summary 10

CHAPTER 2 -A brief history 12 North Sea 14 Norwegian Sea 15 Barents Sea 15

CHAPTER 3 -State organisation of petroleum operations 16 Ministry of Petroleum and Energy 17 Ministry of Labour and Government Administration 18 Norwegian Petroleum Directorate 18 State participation 19

CHAPTER 4 -Petroleum operations in the Norwegian economy 22 Investment 23 Other key figures 23

CHAPTER 5 -State revenues 26 Tax and royalty system 27 SDFl 27

CHAPTER 6 - Industry, employment and technology development 30 Petroleum-related industry 31 Employment in the petroleum sector 31 The significance of technology development for value creation and competitiveness in the petroleum sector 33

CHAPTER 7 - Petroleum resources 36

CHAPTER 8 - Production 40 Production 2001 43 Forecast productiori 43

CHAPTER 9 - Market status for Norwegian petroleum products 44 Norm price 45 Norwegian crude on the world market 45 Sales of natural gas liquids (NGL) 47 Dry gas sales 47 Refin ing 49 Retail sales 49 Petrochemicals 49

CHAPTER 10 - Petroleum operations and the environment 52 Emissions to the air 53 Discharges to the sea 54 National measures 56

7 CHAPTER 11 -Legal and licensing framework 58 Introduction 59 Main features of the licensing system 59 Key documents and legal provisions in the licensing system 60 Other key legal provisions 61

CHAPTER 12 - Licensing rounds 62 Ist-4th licensing rounds 63 5th-10th licensing rounds 63 11th-16th licensing rounds 64 Barents Sea project 64 Awards outside licensing rounds 64 North Sea rounds 65

CHAPTER 13 - Exploration operations 68 Seismic surveys 69 Exploration drilling 69 New discoveries 69 Future exploration 72

CHAPTER 14 - Fields in production 74 Southern North Sea sector 76 Ekofisk (incl Ekofisk, Eldfisk, Embla and Tor) 77 Glitne 80 Gungne 81 Gyda (incl Gyda South) 82 Hod 83 Sleipner West 84 Sleipner East 85 Tambar 86 Ula 87 Valhall 88 Va rg 89

Northern North Sea sector 90 Balder (incl Ringhorne) 91 Brage 92 Frw 93 Gullfaks (incl Gullfaks West) 95 Gullfaks South (incl Rimfaks and Gullveig) 97 Heimdal 99 Huldra 100 Jotun 101 Mu rch ison 102 Oseberg (incl Oseberg West) 103 Oseberg South 105 Oseberg East 106 Snorre (incl Snorre B) 107 Statfjord 109 Statfjord North 111 Statfjord East 112 Sygna 113 Togi 114 Tordis (incl Tordis East and Borg) 115 Troll phase I 117 Troll phase I1 119 Ves lefr i k k 121 Vigdis 122 Visund 123

Norwegian Sea 124 Draugen 125 Heidrun 126 Njord 127 Norne 128 Asgard 129

Fields which have ceased production 131

CHAPTER 15 - Fields and projects under development 134

CHAPTER 16 - Future developments 142

CHAPTER 17 - Pipelines and land facilities 152

CHAPTER 18 - Licence interests on the Norwegian continental shelf 172

CHAPTER 19 - Company interests in fields and production licences 198

CHAPTER 20 - White Papers,etc 206

CHAPTER 21 - Useful postal addresses 21 0

Concepts and conversions 214

9 1 Summary 8h.m of export( . YU Lxploratlon ,; Sh,rre of total rev~nuei 80 Onshore *o Share of GUP - I 5 70 Pipellne5 m Fields f 60 - 30 50 + eStllllatei ejk 70 40 5 30 10 p 20 10 0 0 1971 1976 YR1 1986 1991 1996 2001"

Figure 1.1 Macroeconomic indicators for the Figure 1.2 Investment 1985-2001 petroleum sector. fSource.Sratistics Norway1 'Source: Statistics Norwoy)

The petroleum sector is highly significant for the average to 3.4 mill barrels oe per day. At 53 mill Norwegian economy. Figure 1.1 presents various scni oe, gas production was also high in 2001. indicators from the national accounts for this Total petroleum output in mill scm oe is shown in sector as a percentage of the total national figure 1.4. economy. Its share of gross domestic product, Oil production is expected to remain more or exports and total government revenues has been less unchanged over the next few years, and then substantial over the past two decades, reaching a to go into a gradual decline. Gas output, on the particularly high level in 2000 and 2001. other hand, should expand substantially over the The principal reason why revenues were so coming decade and is expected to be increasingly high in these two years is a combination of high oil significant in Norwegian petrolcwm output in prices, a strong USD against the KOK and histori- future. cally high petrolcum production. The share of Thc petroleum sector is also a substantial prtroleum investment in total capital spending in player internationally. Norway ranks as the world's the Norwegian economy was at its highest in the sixth largest producer and third largest net early 1990s. exporter of oil. It is also the world's third largest Total investment in the petroleum sector has exporter of pipeline gas, and Norwegian foreign been above NOK 40 bn every year since 1992, and sales of this commodity accounted for about two peaked in 1998 at roughly NOK 80 bn. Capital spend- per cent of global consumption in 2001. Roughly 10 ing declined to around NOK 56.9 bn in 2001. Figure per cent of west European gas consumption is 1.2 shows investment in the petroleum sector by covered from Norway. exploration, land-based petroleum operations, Scveral changes were made to state participa- pipelines and fields. tion in thc petroleum sector during 2001. The Figure 1.3 breaks down the government's net government sold 15 per cent of the statc's direct cash flow from petroleum operations into its financial interest (SDFI) to Statoil, which was also components. This clearly shows that the govern- partially privatised. A further 6.5 per cent of the ment's most important revenue sources in recent SDFI portfolio was sold in 2002. In connection with years have been cash flow from the state's direct the partial privatisation of Statoil, two new state- financial interest (SDFI) and from taxes. owned companies were also established. Petoro Production of crude oil has averaged around will nianagrx the SDFI portfolio, while Gassco is a three mill barrels per day since 1996. The figure for transport company for natural gas'.

2001 was 3.1 mill barrels. Including natural gas ~ liquids (NGL) and condensate raises the 2001 1 See chapter 3, State organisation of petrolrum uperations.

1911 1985 1989 1933 1997 2001

Figure 1.3 Net cash flow to the state from petroleum Figure 1.4 Total petroleum production 1981-2001. operations. (Source: National accounts aridstote budget) (Source, NPDj

SUMMARY 11 2 A brief history In the late 1950s, very few peoplc believed that the Key goals for Norwegian oil and gas policies Norwegian continental shelf (NCS) might conceal since the early 1970s have been national manage- rich oil and gas deposits. However, the discovery of ment and control, building a Norwegian oil coniniu- gas at Groningen in the Netherlands in 1959 caused nity and state participation. The Storting (parlia- geologists to revise their thinking on the petroleum ment), the government, the ministry and a new state potential of the North Sea. agency - the Norwegian Petroleurn LXrectorate In the autumn of 1962, the Phillips Petroleum oil (NPI)) - would be responsible for administering company applied for permission to conduct geolog- petroleum operations. Decisions on opcning new ical surveys off Norway and was soon followed by areas lay with the Storting, while licences for petro- others. leum operations were to be awarded by the govern- Norway's sovereignty over the NCS in respect ment. oi exploration for and production of subsea natural Exploration in the 1970s was confined to the resources was proclaimed on 31 May 1963. area south of the 62nd parallel. A phased opening of A new statute determined that the state owns thc continental shelf to exploration and restrictions any natural resourccs on the contincntal shelf, and on the number of blocks awarded in each licensing that the Crown alone is authorised to award licenccs round werc used to maintain ii moderate pace. for exploration and production. In the same year, Foreign companies dominated exploration off companies were granted permission to carry out Norway in the initial phase, and were responsible preparatory surveys and reconnaissance. These for developing the country's first oil and gas fields. reconnaissance licences entitled the holder to While these multinational firms were also perform seismic surveys, but not to drill. intended to play an important long-term role. the Agreements on dividing the North Sea in accor- goal of building up a Norwegian oil community was dance with the median line principle were reached defined at an early stage. Statoil was created as a by Norway with the UK in March 1965, and with state-owned oil company, and the principle of 50 per Denmark in December of the sanir year. The NCS cent state participation in each production licence south of Stad (62"N) - which is taken as the was established. The Storting later decided that the northern limit of the North Sea - was divided into 37 level of state participation could be higher or lower quadrants, each comprising 12 blocks covering 15 than 50 per cent, depending on circumstances. minutes of latitude and 20 minutes of longitude. State participation in petroleum operations was Norway's first offshore licensing round was reorganised on 1 January 1985. Statoil's interest in announced on 13 April 1965, and 22 production many licences was split into two components, one licences covering a total of 78 blocks were awarded. linked to the company's coniniercial participation The first well was drilled off Norway in the suninier and thr other beconiing part of the state's direct of 1966. It proved to be dry. financial interest (SDFI) in petroleum operations.

A BRIEF HISTORY 13 This arrangement means that the state itself line from Ekofisk to Emden in Germany began funds the exploration expenses, investInent and operating in 1977, initiating Norwegian natural gas operating costs falling to the SDFI, and receives the exports to continental Europe. share of production and revenues which corres- The Frigg field was discovered in May 1971 and ponds to its interest in each production licence. The came on stream six years later. A dry gas export Storting resolved in the spring of 2001 that 21.5 per pipeline WAS built to St Fergus in Britain. cent of the SDFI's assets could be sold. Fifteen per Iliscovered in 1974, Statfjord is shared between cent WAS sold to Statoil that same spring, and the Norway and the IJK. All three concrete gravity base remaining 6.5 pcr cent w old to other companies structures on this giant field stand in the Norwegian in March 2002. sector. The first of these platforms came on stream The North-East Frigg gas field became the first in November 1979. In 1985, the first North Sea gas development off Norway to cease production in May was landed in Norway through a trunkline from 1993. A total of 12 fields had been shut in on the NCS Statfjord to Karst0 north of Stavanger, where at January 2002. condensate is reniovrd and the lean gas piped on to Norwegian oil and gas production has increased continental Europe. Statfjord represented Statoil's substantially over the past 10 years, and the country first major assignment as operator. ranks today as the world's third largest exporter of Embracing Statfjord, Gullfaks, Snorre and crude oil after Saudi Arabia and Russia. Petroleum several smaller fields, Tanipen became the most operations now play a substantial role in Norway's important oil-producing region of the NCS during economy, and contribute considerable revenues to the 1980s arid 1990s. Offshore loading into shuttle the state. tankers is used to ship oil from the area. Development of Oseberg WAS approved in 1984, with production starting in 1988. Oil from this field North Sea is piped to Sture near Bergen. Oseberg was the first Norwegian field to receive injection gas from The Balder field was discovered in 1967. Ekofisk another reservoir, using the Togi facility on Troll. was proven in December 1969, and it became The Sleipner East and Troll Phase I gas dwdop obvious in early 1970 that this WAS a large discovery. tncnts were approved by the Storting in 1986. This Later that year, several interesting finds were made reflects a trend in which gas is beconiing increas- in the same area. ingly important in overall Norwegian petroleum Norwegian North Sea oil production began in production. 1971 when Ekofisk at the southern end of the sector Developing Troll ranks as one of the world's came on stream. Its oil was loaded into tankers on biggest energy projects. Embracing production the ficld until the Norpipe oil line to the UK was from thin oil zones, the second phase WAS approved completed in 1975. The Norpipe systtm's lean gas in 1992 and has put Troll among Norway's major oil

14 A BRIEF HISTORY fields since it came 011 stream in 1995. Crude from on offer for the first time in the 15th offshore licen- 7'roll is piped to Mongstad near Kergcn. sing round. Seven of the 18 licenccs awarded in this 1995 round are located in deepwater parts of the Msre and Vwring areas. Norwegian Sea Two large discoveries made in these licences during 1997 confirmed that the area has great The first three production licences abovc the 62nd potential. One of these was Ormcn Lange, the parallel were awarded in 1980. In the following year, second-largest gas discovery on the NCS, with petroleutn was found 011 the Halten Bank with the 400 ~iiillionsctn of gas. New production licences discovery of Midgard (now part of the Asgard field). were awarded in these waters in the 16th round. A number of oil and gas accumulations have since been discovered. Ilraugen became the first oil field approved for Barents Sea development 011 the Halten Bank in the autumn of 1988, and came on stream in October 19%. Heidrun, A total of 39 production licences have been awarded Njortl, Norne and Asgard have subsequently come in the Barents Sea since 1980. A number of thew on stream Plans for- drveloprnerit and operation have yieldccl a series of minor and medium-sized gas (PDOs) of Kristin and Mikkel were approved in discoveries. 2001. Plans for development and operation (PDO) and The Storting approved construction of the installation and operation (PIO) for the Snwhvit LNG Haltenpipe gas transport system from Heidrun to project were submitted to the authoritirs in Tjeldbergodtlen in mid-Norway in February 1992. September 2001 and approved by the Stortirig the Heidrun came on stream in 1995, and associated gas following March. from this field has provided feedstock for methanol These are based on subsea installations tied production at Tjeldbergodden sincc 1997. back by a multiphase gas and condensate pipeline In connection with the Asrard dc~velopment, to a receiving terminal at Melksya outside approval was also sought for a new gas trunkline to Hammerfest in northern Norway. The gas will be KgrstQ. This Asgard Transport system was given processed there, liquefied and exported in liquefied the go-ahead in 1998, and became operational in natural gas carriers. October 2000. It ranks today as the only gas export The Goliat oil discovery was made in 2000. trunkline from the Halten Bank. 'Two small lines Several different development options have been tied into Asgard Transport - the Norne and Heidrun assessed, and the licensees are continuing their Gas Export systems - became operational in efforts to seciire the technical-financial basis for a February 2001. decision on continuing the project. Deepwater artw of the Norwegian Sea were put

A BRIEF HISTORY 15 State organisation of 3 petroleum operations Storting (parliament)

Government

Ministry of Petroleum Ministry of Labour and Ministry of Finance and Energy Government Administration L L

Norwegian Petroleum Directorate

Figure 3.1 The state organisation of petroleuni operations

neStorting (parliament) determines the irame- Gas section work for petroleum opcrations in Norway. Major Responsible for issues relating to development, development projects or issues of principle must be operation and transport for gas fields, including considered and approved by the Storting. exercising the owner's role in relation to Gassco Authority has been delegated lo tht' King in AS, as well as marketing of natural gas. Also Council to approve development projects with an responsible for coordinating allocation issues. estimated cost of less than NOK 10 bn. Overall administrative responsibility for petro- Exploration section leum operations on thc NCS rests with the Coordinates the preparation and implementation of Ministry of Petroleum and Energy (MPE). Its job exploration policies, such as the opening of new is to ensure that these operations are pursued in offshore arras and licence awards, and supervises accordance with the guidelines laid down by the exploration operations. Storting. The petroleum department is organised as follows:

Ministry of Petroleum and Energy Environmentalaffairs section Rcsponsihle for coordinating the department's The MPE is organised in four departments, cov- work on environmental issues, including clirnatc ering E&P and market, petroleum, energy and water questions. Also in charge of the MPE's work with resources, and administration, budgets and account- international agreements on emissions to the air. ing respectively. Responsibility for petroleum operations rests with Industry section the E&P and market and petroleum departments. Deals with issues relating to the petroleum supplies industry. The section also handles the MPE's The E&P and market department is organised as efforts to extend the internationalisatio~i of follows: Norway's oil and gas sector and questions related to research and development. Oil section Covers issues relating to development, operation Section for state participation and transport for oil fields as well as marketing of Responsible for exercising the owner's role in rela- oil and NGI,. Responsible for emergency response tion to the statc's shareholding in Statoil ASA, the planning in the petroleum sector. Provides the state's direct financial interest (SDFI), Petoro AS secretariat for the Petroleum Price Board, which and the state's petroleum insurance fund. deals with tax settlement prices.

STATE ORGANISATION OF PETROLEUM OPERATIONS 17 Minister ~ Political advisor

State secretary

Secretary general Information section

~ ~~~~ I I I 1 E & P and market Petroleum Adm, budgets and Energy and water department department accounting department resources department I

Petroleum Exploration Oil Gas Industry Environmental Section for section section section Section affairs state law and legal Econom'cs participation affairs section Section

Figure 3.2The organisation of the MPE

Economics section Ministry of Labour and Government Carries out economic analyses of the petroleum Administration sector to support the preparation of govcrnrnent policies, including the department's work with the This ministry has overall responsibility for the petroleum tax system and the state's total revenues working environmcnt in the petroleum sector, as from this sector. well as for eniergency response and safety aspects of the industry. Petroleum law and legal affairs section Ileals with all legal issucs, such as preparing Bills and regulations and other lcgal frameworks. Also Norwegian Petroleum Directorate responsible for providing advice in all legal areas relevant to the MPE's work in the petroleum sector. The Storting resolved on 2 June 1972 to establish a Norwcgian Petroleum Directorate (NPD) in Energy and water resources department Stavanger. This agency is administratively subordinate to the MPE. On issues relating to the working This department is responsible for land-based environment, safety and elnergcncy rcsponse, energy generation, administration of watercourscs howcvcr, the NPD reports to the Ministry of and energy consumption. It covers such matters as Labour and Government Administration. legislation governing watercourses, licensing and energy, commercial supervision of Statnett SF, Primary functions of the NPD are: coordination of international energy cooperation, to exercise administrative and financial control and schemes for enhancing energy saving and effi- to ensure that exploration for and production of ciency. Issues relating to energy and the environ- petroleum are carried out in accordance with incnt also come under this department. legislation, regulations, decisions, licensing terms and so forth Administration, budgets and accounting depart- to ensure that exploration for and production of ment petroleum are pursued at all times in accorclancc with the guidelines laid down by the MPE The MPE's administrative and coninion functions to advise the MPE on issues relating to exploration are handled by this department, including organis- for and production of submarine natural resources ation and personnel administration as well as the The NPI) is headquartered in Stavanger, and budget and financial administration of the hfPE has a branch office in the north Norwegian port of and its subordinate agencies. Harstad.

18 STATE ORGANISATION OF PETROLEUM OPERATIONS State participation than Statoil was completed during March 2002.

Norway's oil and gas resources belong to the Statoil ASA Norwegian cornmunity and must be managed for The, Storting resolved on 2 June 1972 to establish a tlie maximum benefit of prtwnt and future genera- state-owned oil company. Statoil's objective is, tions. An overall objective of government oil and either by itsdf or through participation in or gas policy is accordingly to ensure that the largest together with other companies, to carry out explo- possible share of value creation from petrolcum ration, production, transport, refining and market- operations accrues to the community. ing of petroleuni and petroleum-derived products, as well as other business. State's direct financial interest (SDFI) Statoil was partially privatised and listed on the The state's dircct financial interest (SDFI) in the Oslo and New York stock exchanges 011 18 June petroleum sector was established with effect from 2001, with 18.2 per cent of the company sold to 1January 1985, when most of Statoil's licencc inter- private shareholders in Norway and abroad. The ests on the NCS were split into a direct financial state thereby owned 81.8 per cent of the company's component for the state (the SDFI) and a compo- shares at 1January 2002. The Storting has opened nent for the company. for further reductions in the state's shareholding, This arrangement is a field-specific instrument down to two-thirds. in that the interest is adapted to the profitability Partial privatisation of Statoil has involved and resource potential of each production licence. changes in the state's role and dccision-niaking From 1985 until the 14th licensing round in authority towards the company. The, provisions of 19Y3, the SDFI received a holding in cach produc- the Public Limited Companies Act apply in full, and tion licence awarded It received interests in 16 of the special rules governing state-owned limited the 18 liccmces awarded under the 15th licensing companies are no longer relevant. As the majority round in 1996, and eight of 14 (included two shareholder, however, the government retains great supplementary awards) allocatrd in the 16th influence - not least in relation to the company's round. This reflects the resource potential and articles of association. expected profitability in the respective rounds at The government, through the MPE, wishes to the point when tlie awards were made. See chapter act as a professional owner in line with the other 5 for more information on the SDFI. shareholders. 'I'he prospectus for Statoil's initial In 2001, the Storting resolved to restructure public offering stated that thc government has indi- state participation in the petrolcum sector. This catd that it - as onc of many shareholders - will included the s& of SDFI assets corresponding to concentrate on issues relating to the return on 13 per cent of the portfolio's value to Statoil. The capital and dividend, with the emphasis on long- sale of a further 6 5 per cent to companic.s other term development of profitabk opcrations and

STATE ORGANISATION OF PETROLEUM OPERATIONS 19 value creation for all the shareholders. be awarded operatorships. It cannot sell, swap or Statoil will continue to be responsible for buy licence interests, but can advise on such trans- marketing the state's directly-owned oil and gas actions. Its duties will be confined to managing the SUFI. Petoro AS Petoro will be financed by appropriations from Statoil previously providrd commercial manage- the government, and will not receive revenues ment for the SDFI. This arrangement reflected from the SDFI's assets. These assets will be Statoil's status as a wholly state-owned limited managed on the government's account. As before, company, which gave the government opportuni- income and expenditure relating to the SDFI will ties for management and control of the SDFI in bc carrir,d on the central government budget. accordance with constitutional requirements for managing state property and organising commer- Gassco AS cial state operations. In connection with the partial privatisation of Partial privatisation of Statoil meant that the Statoil, the Storting resolved to create a separate organisation of the SDFI had to be amended. The company for transport of natural gas. Gassco AS Storting accordingly added a new chapter 11 to the was established on 14 May 2001. Petroleum Act. This specified the main features of The government's objective in creating Gassco the management system for the SDFI and formed are that: the basis for creating Petoro AS to manage the SL)FI. gas transport and treatment facilities will serve Established on 9 May 2001. Petoro is organised all producers and contribute to efficient overall as a wholly state-owned limited company and based utilisation of rcsources on the NCS in Stavanger. Due to have about 60 employees, it this company for the gas transport systems will has three duties: act neutrally in relation to all users of this infra- 1. managing the state's interests in partnerships structure where such interests are held at any given time this company will play a key role in further devel- 2. monitoring Statoil's sale of petroleum produced opment of the transport systems for the SUFI 3. keeping accounts for the SDFI Gassco took over as operator on 1 January The company's operations are confined to the 2002, and is based at Rygties in Karmmy local NCS, and it will have no offshore interests of its authority north of Stavanger. The company is own. It will not apply for new production licences or wholly state-owned.

20 STATE ORGANISATION OF PETROLEUM OPERATIONS STATE ORGANISATION OF PETROLEUM OPERATIONS 21 Petroleum operations in the 4 Norwegian economy

Investment 911 RII 1

1985 1989 1993 1997 2001"

Figure 4.1 Accrued investment 1985-2001 iSource: Statistics Norway)

Petroleum production and pipeline transport Other key figures create substantial revenues for licimsees and the state. At the sanie time, developnient and opera- Figures in tables 4.1 and 4.2 are taken from the tion consunie considerable resources. national accounts or other publicly available This chapter presents an overview of statistics, and are based on the definitions applied resources utilised and value added in production by Statistics Norway. and pipeline transport. The figures exclude value creation and resource utilisation in drilling and oxploration, the supplies industry, refining and petrochemicals. Invest ment Gross product Investmrnt in the petroleum sector totallrd about Gross product is an expression for value creation in NOK 30 bn per pear from 1985 lo 1990. It has a sector during a yrar, and equals the value of gross since increased substantially, and was particularly production less the value of commodities employed high in 1993 and in 1997-99. for production. The gross domestic product (GDP) These peaks reflect both heaw investment in sums the gross product of all sectors. new fields and spending on gas pipelines to continental Europe. Export value Figure 4.1 shows capital spending in the petro- This figure is calculated at thc Norwegian border. leum sector by exploration, land-based petroleum The value of gas exports is calculated at the operations, pipelines and fields. boundary of Norway's continental shelf. Oil The following fields and projects on the NCS exports are valued at the loading buoy for shuttle were under developmcut at 31 December 2001: tankers and at the continental shelf boundary for Grane, Tune, Kvitebjcrru, Valhall water injection, pipeline transport. The export value of pipeline Valhall flanks, Fram West, Kristin (Halten Bank services is the transport value in Norwegian- West), Mikkel, Sigyn and Vale. owned pipe-lines from Norway's continental shelf As oil and gas fields are depleted and produc- to foreign tcrminals. tion ceases, spending will bci needed on abandonment or a1tc)rnative use of installations. Accrued investment Estimated annual investment in thc petroleum Total accrued investment represents overall capital sector until 2010 is shown in figure 4.2. spending on production and pipeline transport, and

PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY 23 70 60 1 - e Undiscovered re~ourcei Possible improved recovery measures n Finds under evaluation b rn Pipelinesionrhore k Specific measurer on producing fields I Fields in production or underdevelopment

0). , , , , . . , 2002 2004 2006 2008 2010

Figure 4.2 Estimates for future investment in fields and pipelines 2002-2010. (5ource:MPUNPDI

Table 4.1 Key economic figures for the petroleum sector, NOK bn (money of the day). 1993 1994 1995 1996 1997 1998 1999 2000 200l* ~~~~~ ~~ ~~~~~ ~ ~~ ~ ~ ~~~~~~~~~~~~~ Gross product 106.8 111.5 118.6 163.3 177.0 125.7 175.5 337.3 318.5 ExDort value 105.7 108.5 115.4 160.1 167.4 122.9 164.8 312.0 306.9 Accrued investment 57.6 54.7 48.6 47.9 62.5 79.2 69.1 53.6 56.9 Employment (thousands) 18.1 17.5 17.6 16.7 16.5 15.8 16.3 15.2 14.9

[Source: Stofirrics Norway) * esrinmre

Table 4.2 Petroleum operations in the Norweqian economy 1993 1994 1995 1996 1997 1998 1999 2000 2001' ~ ~ ~~~~~~~ Share of gross product 13.3 13.2 13.1 16.5 16.7 12.0 15.4 24.4 22.6 Share of export value 33.5 32.6 32.7 38.6 37.4 29.9 35.3 47.0 45.1 Share of total employment 0.9 0.9 0.8 0.8 0.7 0.7 0.7 0.7 0.6

(Source: Sfofisfics Norway) * esrimare

includes exploration costs and invcsttnent on land Employment directly related to petroleum operations. The direct employment effect of crude oil/natural Norwegian petroleum operations account for gas production and pipeline transport is relatively a substantial proportion of overall investment in small, accounting for less than one per cent of the country. Capital spending by this sector repre- total jobs in Norway. When indirect effects are sented about 30 per cent of the total for main-land included, the impact is higher than table 4.1 indi- Norway in 1984-90. This proportion was substan- cates. See also chapter 6 on industry. employment tially higher in the early 199Os, and came to about and technology development. 65 per ccnt in 1993. The big increase reflects not only heavier Total wealth in the petroleum sector investment by the petroleum industry but also Total wealth in the petroleum sector is calculated lower spending in other sectors. as the net present value of estimated future net Investment in mainland Norway has incre- cash flow from this industry. ased in recent years, and petroleum-relatcd spen- The 2002 national planning budget puts the ding corresponded to just over 24 per cent of the figure at roughly NOK 2 400 bn in 2002 value, with mainland figure in 2001. about NOK 2 100 bn representing the state's share.

24 PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY A real discount rate of four per cent has been Expenditures comprise an annual transfer to the applied in the calculation. Ministry of Financc corresponding to the amount Considerable uncertainty attaches to such of petroleum revenues applied in the fiscal budget calculations, which utilise estimates for futurr to cover the non-oil deficit. prices, exchange rates, inflation rates, production Capital in the fund acts as a buffer which profiles and resources. Choice of discount rate provides greater room for manoeuvre in economic will also influence thc outcome. policy should oil prices or activity in the mainland economy declinr, and serves as an instrument for Government Petroleum Fund coping with the financial challenges presented by Established by an Act of 1990, the Government an ageing population and declining oil revenues. Petroleum Fund received its first transfers in 1996 The fund totallrd NOK 618 bn at 31 Ileceniber for fiscal 1995. Its income rcpresents the central 2001. This corresponds to about 42 per cent of gross government's net cash flow from prtrolrum activi- domestic product. 'The value of the fund increased ties, as well as the return on fund investments. by about NOK 232 bn from 31 L)ecmiber 2000.

PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY 25 5 State revenues

SUFI Figure 5.1 Net state cash flow from petroleum operations 1977-2001 (Source. National accounts and state budget)

Securing high and stable government revenues The most important duties levied on petroleum from petroleum operations is an important objec- operations are royalty on oil production, the area tive of Norwegian policies for this sector. The fee and tlie carbon dioxide tax. Royalty is payable most important instruments for generating such on production from fields approved for develop- revenues, both imnicidiatcly and in the long term, ment before 1January 1986, and constitutes eight are the tax and royalty system and the state's to 16 per cent of gross production value. Royalty is direct financial interest (SDFI), as well as divi- being phased out. and four fields pay it today. It dends from and the rise in the asset value of the will be abolished for all fields on 1 January 2006. state's holdings in Statoil and Norsk Hydro. All production licences must pay the area fee Figure 5.1 shows state revenues (taxes, after the exploration period has expired. The royalty, net SI)FI cash flow, sale of SDFI assets annual fee for most licences increases from NOK and Statoil dividend) from petroleum operations 7 000 to a maximum of NOK 70 000 per square in 1977-2001. Net income of about NOK 14 bn kilometre over the subsequent decade. If conipa- from the sale of Statoil shares is not included in nies renounce the right of preemption in the the state's net cash flow in figure 5.1. production licence, they can apply for a 40 per cent reduction in the area fee. Special rules apply for the oldest licences, and for licences in the Tax and royalty system Karents Sea. Carbon tax is levied at a rate per scni of gas Petroleum taxation builds on the Norwegian rules burnt or directly released and per litre of oil for ordinary corporation tax, which is charged at burnt. The rate for 2002 is NOK 0.73. 28 per cent both on land and offshore. Owing to tlie extraordinary profitability (rent) of petroleum production, a special tax of 50 per cent is also levied on this industry. When calculating taxable income for both The SDFI was established in 1985 by dividing ordinary and special tax, investment is subject to Statoil's holding in most Norwegian offshore linear depreciation over six years from the date it licences into an equity share for the company and was made. Companies can also deduct their net a direct interest for the statc. An SDFI interest is financial costs allocated between land and offshore incorporated in most licences awarded after 1985. operations on the basis of the taxable assets held As a result. the state now has a direct interest in on land and offshore respectively. An uplift of five most petroleum fields and transport systems on per cent of investment is deductible from the the NCS. In connection with its partial privatisation, income base for determining special tax over a Statoil acquired li per cent of the SUFI'S assets in six-year period from the date of the investment. 2001. A further 6.5 per cent was sold to other

STATE REVENUES 27 Table 5.1 Paid taxes and fees, NOK bn (2002 value). (5ource:Nationaloccountsandcentrolgovernmentbudgeti

Corporate tax Special tax Royalty Area fee Carbon dioxide tax Total

1980 22.0 10.9 8.1 0.1 0.0 41.1 ~~ 1981 27.3 16.0 10.5 0.1 0.0 53.9 1982 27.4 16.5 10.5 0.1 0.0 54.5 ~~~~ ~ ~~ ~ ~~ ~ 1983 24.2 15.1 13.1 0.1 0.0 52.4 ~ 1984 29.6 17.8 15.7 0.1 0.0 63.1 ~ ~ 1985 33.6 20.0 17.9 0.3 0.0 71.9 1986 25.6 14.8 12.0 0.3 0.0 52.7

~~ I 1994 7.0 10.1 7.4 0.2 2.8 27.5 ~~ ~~ 1995 8.7 11.9 6.5 0.6 2.8 30.5

~ ~~ ~ 1996 10.8 14.1 6.9 1.2 3.0 36.0 ~~ 1997 16.6 20.9 6.7 0.7 3.2 48.2 ~ ~~~ ~ 1998 9.6 11.6 3.9 0.6 3.4 29.2 1999 5.8 6.4 3.3 0.6 3.4 19.5

~ 2000 22.6 33.9 3.6 0.1 3.1 63.3 ~~ ~ 2001, 42.0 65.1 2.5 1.0 2.9 113.5

~~ ~~ ~

conipanirs on the NCS during 2002. receives a corresponding proportion of produc- LInder thc SI)FI arrangement, the state pays a tion and other revenues on the same terms as share of all investment and operating costs in a other licensees. Petorol manages the SUFI port- project corresponding to its direct interest. It also folio.

28 STATE REVENUES 1995 42.9 30.7 21 2 93 10 2 ~~~~~ ~ ~- 1996 67.6 32.6 16.8 35.0 38.2 1997 77.2 36.7 20.3 40.4 43.3 1998 60.4 45.9 27.3 14.6 15.5

~ 1999 75.1 49.3 30.3 25.8 26.9

~~~ 2000 142.9 44.7 22.6 98.2 101.1 2001* 170.4 46.0 17.8 124.4 125.9

Table 5.2 shows net cash flow and investment The SDFI now accounts for a large part of for the SDFI. A one-off settlement of NOK 9 082 Norway's petroleum sector. Its investments mill in 1985 money between the SDFI and Statoil corresponded to about 30 per cent of capital spen- is included in investment and deducted from cash ding on the NCS in 2001. flow. Net revenue of roughly NOK 40 bn from the sale of SDFI assets to Statoil is includcd in net cash flow for the SDFI. 1 See chaptcr 3, State organisation of petroleum operations

STATE REVENUES 29 In d us t ry, em p Ioy men t 6 and technology development INTSOK Norwegian Oil and Gas Partners

Petroleum-related industry industry, the government established the Intsok - Norwegian Oil atid Gas Partners foundation in One of the policy objectives formulated after the 1997 to protnotv deliveries to the international discovery of oil and gas in the Norwegian North market. Currently embracing 84 conipanics, Intsok Sea was that these reso~ircesshould form the aims to boost revenues from abroad to NOK 50 bn hasis for developing petroleum-related industry in by 200%5,compared with the current level of just Norway. Transfer of expertise iroin abroad and under NOK 30 bn. Such growth will require a the build-up of domestic operations were impor- substantial and purposeful commitment. The MPE tant elements in this devclopmcnt. A competent has appropriated NOK 10 million for this purpose and competitive Norwegian supplies industry for in the central government budget for 2002. oil operations has been gradually drveloped. A new forum for top executives was established The country now has a large number of compa- in September 2000. Chaired by the Minister of nies in this sector, covering most stages in the Petroleum and Energy, this body embraces more pctrolcum value chain from cxploration via deve- than 20 leaders from oil companies, suppliers, lopment to production and opcmtion. In certain unions and the authorities. It represents a joint areas, Norwegian suppliers to the oil and gas initiative to rcvitalisc the Norwegian petroleum industry arr among the world icaders. This sector. applies particularly to seismic surveying, subsea The mandate for the forum is to identify and installations and floating production solutiotis. initiate projects to strengthen thr competitiveness Activity in Norway's offshore supplies industry of the oil and gas sector. Its actions have included has so far largely related to new investment, main- the launch of projects and work processes relating tenance and operational assignments 011 the NCS. to conflict resolution, inarginal fields and rig The likelihood that future activity in these waters market iniprovmwnts. In addition, the forum will will be lower, combined with a high level of exper- monitor established processes such as OG21, tise, nieans that the industry is focusing to a greater Intsok and the Environment Forum. extent on international market opportunities. The global market for deliveries to the oil and gas sector is substantial. According to Norland Employment in the petroleum sector Consultants, the offshore market should grow by 30 per cent over the next four years to reach lJSD The Directorate of Labour has compiled annual 110 bn in 2005. Moderate, stable growth of about statistics for petroleum-related cmploytnent since five per cent is forecast for Norway, while the Gulf 1973. Its latest survey was conducted in August of Mexico arid West Africa are expected to expand 2001. Figure 6.1 shows developments in such by 30 and 65 per cent respectively. employment from 1982 to 2001. In cooperation with the domestic petroleum A total of 73 904 people were employed by the

INDUSTRY, EMPLOYMENT AND TECHNOLOGY DEVELOPMENT 31 1on r

# 80

1 60 t ; 40

1985 1989 1993 1997 2001

Figure 6.1 Employment in Norway’s petroleum sector. (Source:Directorate of Labour)

Norwegian petroleum sector in August 2001, an recorded in 1998 when a number of major deve- increase of 2 469 or about three per cent from lopment projects coincided. 2000 and corresponding to roughly three per cent Table 6.1 shows employment over the past of total employment in Norway. The number of seven years, grouped by four functional areas. people employed declined by no less than 21 186, After the dramatic contraction in jobs from 1998- or roughly 23 per cent, from August 1998 to 2000, a slight improvement has been registered in August 2000 - the largest contraction since three of these categories. records began in 1973. So the decline in jobs Employment in the petroleum sector can also be appears to have halted, although the level of broken down by company type. The oil companies cmploynient still falls well short of the peak account for 15 724 of the 73 904 people employed in

Table 6.1 Employment by functional area. (Source:D/rectorate of Labour)

~~ -~ Group 1995 1996 1997 1998 1999 2000 2001

Exploration, drilling and production, etc 25678 25469 27x61 30270 30 130 26372 27968

Bases, logistics, catering, administration, etc 10635 11 522 12480 13652 13285 13469 13924

Construction and maintenance of platforms and vessels 29 693 30 160 34200 43 535 41 032 27 633 28422

~~ ~~

Construction and operation of processing and landing facilities 6 522 6020 5 161 5 164 5072 3961 3 590

Total 72528 73 171 79702 92621 89519 71 135 73904

~~ ~ ~ ~

32 INDUSTRY, EMPLOYMENT AND TECHNOLOGY DEVELOPMENT Norway's petroleum industry, with the rest was that the industry has defined technology as working for the supplies sector. Of the latter, the the most important factor for reducing costs and largest category - 20 878 people - worked in enhancing the competitiveness of Norway's oil manufacturing and construction. Engineering and gas business. In addition, technology will be firms had 8 429 employees and the service sector crucial for mceting major challenges facing the 7 614. industry. Engineering companies recorded the biggest Research efforts in the sector have so far expansion in jobs during 2001, up by 1 200 or about been fragmented. A more unified and purposeful 16 per cent from the year before. Employment rose structure accordingly needs to be established for by 700 in the oil companies and 600 in the service technology, research and development activities sector. Manufacturing and construction experi- directed at this business. enced a slight decline by 400 jobs. OGai has defined five priority areas as the basis for its future work: improved recovery The significance of technology develop- environmental protection ment for value creation and competi- deep water tiveness in the petroleum sector small fields the gas value chain. The need for an overall review of strategy for technology and research was discussed in Report no Increased and better coordinated technolo- 39 (1999-2000) to the Storting on oil and gas gical development will lay the basis for ensuring: operations. As a follow-up, the MPE initiated a improved resource utilisation and continued process in the summer of 2000 to produce reconi- profitable value creation mendations on a national strategy for the overall strengthened industrial competitiveness and commitment to technology and research in the internationalisation, including increased exports petroleum sector. major national environmental gains. Named OGzi (for oil and gas in the 21st century), this study was conducted by representa- One of the main conclusions of the OGa report tives of the oil companies, supplies industry and is that resources on the NCS represent an unreal- research institutions. A final report, which will ised value potential without parallel in a national form the basis for further work, was submitted to context. However, this potential has so far been the MPE in February 2001. The new board for under-focused, and the report notes that stronger OGzi was established in August 2001, with a attention needs to be paid to the unexploited secretariat head appointed in October. opportunities which could be addressed through Part of the background for the OG2i initiative future technology development.

INDUSTRY, EMPLOYMENT AND TECH NO LOGY DEVELOPMENT 33 Figure 6.2 Possible value creation from improved oil recovery. (Source:OG2i ) "Oslo Stock Exchange, February2002 ""Gross present value, size dependent on timing and volumes

The vision is that the NCS will become the contrary, this analysis concludes that the recov- world's most productive petroleum province. A ery factor could decline from the present average review of the potential for improved recovery from of 44 per cent with today's technology - partly different categories of field - small with reserves because remaining resources arc inore techni- of less than 50 inill scm, medium-sized with 50-200 cally and commercially demanding to produce mill scm and large with more than 200 mill scni - than those already recovcrrd. was one of the approaches taken by OGzl in Market fluctuations in 1998-99, with consequent studying the value creation potential on the NCS. swings in revenue's and levels of activity, indicate A potential for improving the offshore recovery that Norway's offshore operations need to factor from today's 44 per cent to 57 per cent was become more cornmcrcially robust. This is largcly identified on this basis. An increase on this scale due to the high cost level, as shown by the expend- would allow Norway to recover additional oil with iture comparison between the NCS and other a gross present value of NOK 470 bn measured by upstrcwn provinces in figure 6.3. current price c.xpectations applied in the national As the figure illustrates, Norway has the highest planning budget. By comparison, the combincd level of offshore costs in the market. Reducing value of stocks listed on the Oslo Stock Exchange costs accordingly represents one of the principal at 4 February 2002 was roughly NOK 743 bn. See challenges in securing the continued compcti- figure 6.2. tiveness of the country's offshore sector. As figure Enhanced productivity in utilising gas 6.3 shows, the break-even price for Norwegian resourcrs is not included in the above-mentioned offshore dcvelopments is USD 12 per barrel (1998 gross prescnt value. A potential value increase figures). from productivity gains for gas would boost the The Dcmo 2000 collaboration on project- overall valuc of the additional volumes yielded by oriented technology has helped to reduce the improved rccovery. break-even oil price required for new drvelop- The NPD has operated since 1997 with 50 per ments on the NCS by lJSD 2-3 per barrel. cent as its target for the average offshorc reco- Devising the next generation of development and very factor. According to OGx, achieving an production solutions offers a major value creation average of 57 per cent would require an iniprove- potential. According to the review of 1)cnio 2000 ment in the recovery factor from 28 to 35 per cent provided in Report no 39 (1999-2000) to the for small finds, 39 to 50 prr cent for mcdiuni-sized Storting. future technological leaps offer potential discoveries and 46 to 60 per cent for big fields. cost reductions close to IJSI) 5 per barrel. The Verteks analysis conducted by the In addition to cnhancing value creation on the Kogaland Research institute in Stavanger notes NCS, new technology could contribute to more that no technology currently available can bring stable and robust growth for Norway's supplies the recovery factor up to the desired level. On the industry through internationalisation. OG21 con-

34 INDUSTRY, EMPLOYMENT AND TECHNOLOGY DEVELOPMENT Figure 6.3 Daily production and break-even prices for various upstream provinces (1 998). (Source. Reve/Jncobsen "Et verdiskapende Norge'?

cluded that the aim should be to increase the on the environment imposed by the petroleum busi- value of exports by this sector from roughly NOK ness should be a goal for new technology. Many of 27 bn today to NOK 70 bn by 2010, without taking the technical solutions developed and adopted to account of market growth during the period. improve recovery on the NCS could also have a posi- 'The global offshore rnarkct is very dynamic, with tive environmental effect. Technology for separating requirements and needs in constant change. New wellstreams on the seabed or downhole would save technology and leading-edge expertise will there- energy, for example. fore be crucial for such growth. Strengthened Participants in OGa agree on the nccd to estab- Norwegian expertise in such arca:j as deepwater lish a stronger and more unified system for R&D. technology, improved recovery and utilisation of demonstration and commercialisation in the small fields could represent a basis for significant petroleum sector, in part to realise the value crca- international opportunities. tion opportunities outlined above and to streng- Substantial environmental gains are also offvred then the coordination and productivity of overall by technological leaps. Reducing the overall burden operations in the arca.

INDUSTRY, EMPLOYMENT AND TECHNOLOGY DEVELOPMENT 35 7 Petroleum resources 14 13 12 11 10 9 ;8 E7 63 2440 zb “5 4 3 2 1 29%

1 2 Total resources*,132 bn icm oe 3 * Q,! ,riduud~iNGL uridcundei.iofr

Figure 7.1 Status for petroleum resources and the uncertainty in the estimates (Source NPDI

Discovered and undiscovered rebources on the 2000 have been reclassified in accordance with NCS are expected to total roughly 13.8 bn scin oe. the new system. The accounts show the estimated This represents a slight increase of about 200 mill valuc, of rcsourccs scm oe from 2000. Production to date amounts to Exploration activity off Norway in 2001 was 3.25 bn scm oe, corresponding to 24 pcr cent of relatively high, with a technical discovery rate of iio total resources. less than 60 per cent. However, most of these finds Remaining recoverable resources total 10.6 bn were small and cover in total only about two months scm oe, of which provcn reserves total 5.7 bn scm of oil production and five months of gas output. oe. In addition, possible future measures for Table 7.1 presents produced reserves, reniain- improving oil recovery from ficlds rlre expected to ing reserves and contingent resources on the add just under one bn scm oe. NCS. Thcse figures are supplemented by the The NPD introducr,d a new classification system future potential for improved resource utilisation, for Norway’s offshore petroleum resources during put at almost one bn scm oe. This is shown in the 2001. Thcse changes mean that figures broken total resources, but not broken down for the down in older reports cannot be directly compared North, Norwegian or Barcnts Seas. In addition with those in the 2001 accounts. come undiscovered resources, which total 3.9 bn scni oe. Important changes are: Cumulative output sincr petroleum prodnc- Petroleum volumes in fields in production tion began off Norway in 1971 amounts to 3.25 bn which could be produced without significant scni oe. Overall production in 2001 amounted to investment, can be reported as reserves. This 251 mill sun oe. includes substantial gas volumes in Troll and Of producing fields at 31 Dccember 2001, 37 Oseberg which were previously classified as were in the North Sea and five in the Norwegian resources in higher resource classes. Sea. In addition, nine fields had development plans Reserves are now defined as a separate class approved but were not yet on stream (including confined to remaining reserves. This embraces Sn~hvit). the following categories: fields in production, Undiscovered petroleum resources on the fields approved for development and discoveries NCS are put at 3.9 bn scni oe, with a large uncer- which the licensees have decided to develop. tainty range of 1.5 to sevtm bn scm oe. About 30 Resources in the planning phase now have a per cent of this total is thought to lic in the North time horizon of about four years until an anti- Sea, 45 per cent in the Norwegian Sea and 25 per cipated plan for development and operation cent in the Barents Sea. Gas accounts for 64 per (PIIO) . cent of the total. IXscovered resources not yet in production Remaining reserves increased by a total of 116 are designatcd contingent resources. mill scm oe in 2001. Gas reserves were up by 166 bn scm, but oil reserves declined by 110 mill scm. To be able to compare the resource accounts Resources in fields sank by about 162 mill scm oe. for 2001 with the previous year, the accounts for Twelve new discoveries wercl made in 2001,

PETROLEUM RESOURCES 37 ~~ Resource accounts at 31 12 01 Changes from 2000 Total recoverable ;;; NGL Cond Total Oil Gas NGLT; Project status category mill scm bn scm mill tonnes mill scm mill scm oe mill scrn bn scrn mill tonnes mill scm mill scm oe pT~ ~ Produced 57 50 J258 181 53 3 ~- -- Remaining reserves** 1501 2 189 111 131 4033 -110 166 15 '30 116 Contingent resources infields 221 17:j 20 16 447 -19 -75 Contingent resources in discoveries 189 972 16 73 1264 1 -150 Total remaining proven I reserves and resources 1912 33:iJ 147 21Y I 5745 -128 -59 Possible future measures for improved recovery* 400 500 YO0 -25 0 -25 Undiscovered '1420 2510 1 3930 70 110 180

~ Total NCS 6 100 7074 205 270 13833 98 104 3 47 161 i -

Produced Gl 56 4

Contingent resources in fields -3

~ Total remaining proven reserves and resources Undiscovered 630 570 1200 8 22

Total 54 15

Remaining reserves** Contingent resources in fields 20 58 101 10 -6 -19 -7 Total remaining proven reserves and resources 367 1058 Undiscovered 480 1270

Total

Barentr Sea ~~

-7---t ~~ 0 0 0 01 0 0 164 5 18 191

~ ~~ Contingent resources in fields 00 0 0 0 ~~

*-- Total remaining proven I reserves and resources 18 217 5 20

~~ ~ Undiscovered

Total 328 887 ~~

* Resources from future IOR measures are registered at the aggregate ievel,and no division has been made between the various regions. ** Includes resource categories 1.2 and 3 (see the explanation on page 75).

38 PETROLEUM RESOURCES with overall resources in the order of 33-38 million produced. Remaining reserves total some 700 mill scni of oil and 15-22 bn scni of gas. Contingent scm oe, with crude oil accounting for about 38 per resources in discoveries declined by roughly 200 cent. Remaining reserves increased by 85 tnill scm mill scni oe, despite the new finds. The most oe, primarily because two new fields were important reason for the reduction is that Kristin, approved for development and thereby reclassified Mikkrl, Sigyn, Snahvit, Vale, Frarn and Tune have as reserves. That meant a significant reduction in been reclassificd a5 rescrvcs after the licensees contingent resources in discoveries. The potential decided to develop. for undiscovered resources was upgraclecl during A total of 6.8 bn scm oc has been found in the the year by about 160 mill scm oe, with a slight North Sea. Of this, three bn scrn oe has been prepondcrancc of gas. This is thv most important produced and rcmaining reserves amount to 3.1 single reason why total resources 011 thc NCS bn scm oe. Oil accounts for about 40 per cent of increased from 2000. this. Remaining reserves in the North Sea IXscovcries in the Barents Sea total 300 mill declined by about 160 mill scm oe as a result of scm oe. The submission of a PI)O for Sndivit production in 2001. Six new fields have been means that petroleum volumes in this discovery approved for development and classified as are now classified as reserves. That in turn is the reserves. This mmns that resources in discove- principal reason why these petroleum volumes ries declined correspondingly. A rcvirw of thc are now booked as remaining reserves in the potential for undiscovered resources in the North Barents Sea, and that contingent resources in Sea has resulted in a small increase of about 30 discoveries have been reduced accordingly. A mill scm oe, primarily gas. small oil discovery during 2001 made a positive Discoveries in the Norwegian Sea total 1.9 bn contribution to continued exploration of and scm oe, of which 230 mill scm oe has so far been future production from the Barents Sea.

PETROLEUM RESOURCES 39 Production Table 8.1 Fields in production, with an approved development plan or with a development decision by the licensees at 31 December 2001. Footnotes on page 42. (5ource:NPDl

__~ ~~ ~ FIELD VOLUME ORIGINALLY RECOVERABLE' REMAINING RESERVES5 -- __~ Oil 011 Oil Gas NGL Condensate equivalent. Oil Gas NGL Condensate equivalent2 mill scm bn scm mill tonnes mill scm mill scm mill scm bn scm mill tonnes mill scm mill scm - ~~~ BALDERa 72.4 2.9 0.0 0.0 75.3 63.5 2.9 0.0 0.0 66.3 BRAGE 44.9 2.6 0.7 0.0 48.9 5.8 0.8 0.1 0.0 6.8 DRAUGEN 137.0 7.4 2.0 0.0 148.2 60.2 7.1 1.6 0.0 70.4 EKOFISK 478.5 174.0 14.0 0.0 679.0 183.6 55.8 3.7 0.0 246.4 ELDFISK 108.5 45.3 4.1 0.0 161.5 39.4 12.8 0.9 0.0 53.9 EMBLA 13.6 6.6 0.7 0.0 21.4 6.1 4.2 0.4 0.0 11.1 FRAM3 16.1 3.6 0.1 0.0 19.8 16.1 3.6 0.1 0.0 19.8 n- FRlGG 0.0 121.6 0.0 0.5 122.1 0.0 7.7 0.0 0.0 1.1 GLITNE 3.6 0.0 0.0 0.0 3.6 2.8 0.0 0.0 0.0 2.8 GRANE3 120.0 0.0 0.0 0.0 120.0 120.0 0.0 0.0 0.0 120.0 GULLFAKS~ 335.2 22.2 2.0 0.0 361.1 49.2 2.7 0.5 -0.7 52.2 GULLFAKS SOUTH( 40.2 47.4 5.8 0.0 98.7 31.1 46.9 5.8 0.0 89.0 GUNGNE 0.0 10.1 1.3 3.1 15.7 0.0 10.1 0.8 1.5 13.1 GYDA~ 34.1 5.8 1.8 0.0 43.3 3.8 0.6 0.1 0.0 4.7 HEIDRUN 178.0 28.2 1.2 0.0 208.4 106.4 24.7 1.1 0.0 133.1 HEIMDAL 6.9 41.8 0.0 0.0 48.7 0.8 0.3 0.0 0.0 1.0 HOD 7.8 1.6 0.2 0.0 9.8 0.9 0.3 0.0 0.0 1.2 HULDRA 5.0 12.9 0.1 0.0 18.1 4.9 12.8 0.1 0.0 17.9 JOTUN 31.1 0.8 0.0 0.0 31.9 17.6 0.3 0.0 0.0 17.9 KRISTIN' 0.0 34.9 8.5 34.6 x5.7 0.0 34.9 8.5 34.6 85.7 KVITEBJ0RN3 0.0 54.2 0.5 20.6 75.6 0.0 54.2 0.5 20.6 75.6 MlKKEL3 0.0 19.8 4.2 5.5 33.3 0.0 19.8 4.2 5.5 33.3 MURCHISON 13.6 0.4 0.4 0.0 14.7 0.5 0.1 0.1 0.0 0.7 NJORD 23.7 0.0 0.0 0.0 23.7 11.3 0.0 0.0 0.0 11.3 NORNE 84.8 13.5 1.3 0.0 100.8 47.9 12.5 1.2 0.0 68.7 OSEBERG 346.0 89.0 0.0 0.0 435.0 54.1 84.1 -0.5 -0.6 136.5 OSEBERG EAST 24.5 0.8 0.0 0.0 25.3 17.2 0.8 0.0 0.0 18.0 OSEBERG SOUTH 54.0 7.0 0.0 0.0 61.0 48.1 7.0 0.0 0.0 55.1 OSEBERG WEST 2.0 6.0 0.0 0.0 8.0 0.9 (5.0 0.0 0.0 6.9 SIGYN' 0.0 5.3 1.5 3.0 11.1 0.0 5.3 1.5 3.0 11.1 SLEIPNER EAST' 0.0 55.2 11.3 25.2 101.7 SLEIPNER WEST 0.0 104.0 6.9 27.0 144.1 SLEIPNER EAST AND WEST6 0.0 90.3 6.2 13.1 115.2 SNORRE 231.6 8.9 6.7 0.0 253.3 140.0 4.8 4.0 -0.6 151.9 SN0HVIT4 0.0 163.5 5.1 18.1 191.3 0.0 163.5 5.1 18.1 191.3 STATFJORD 561.4 :,8.4 14.4 0.0 647.1 43.4 13.5 4.2 -3.2 61.6 STATFJORD EAST 37.1 4.1 1.3 0.0 43.6 12.6 2.2 0.7 0.0 16.3 STATFJORD NORTH 40.0 2.8 0.8 0.0 44.4 16.9 1.6 0.5 0.0 19.5 SYGNA 12.7 0.0 0.0 0.0 12.7 9.5 0.7 0.0 0.0 10.2 TAMBAR 7.2 2.4 0.3 0.0 10.1 6.7 2.4 0.3 0.0 9.6 TOR 25.8 11.4 1.2 0.0 39.5 4.4 0.8 0.1 0.0 5.4 TORDIS~ 52.5 4.2 1.4 0.0 59.3 20.9 1.7 0.7 0.0 24.0 TROLLB 215.9 1321.7 24.8 1.6 1586.2 119.5 1210.4 24.8 0.0 1376.9 TUNE3 6.1 22.9 0.1 0.0 29.1 6.1 22.9 0.1 0.0 29.1 ULA 77.9 3.7 2.6 0.0 86.6 15.6 0.0 0.3 0.0 16.1 VALE3 3.0 2.3 0.0 0.0 5.3 3.0 2.3 0.0 0.0 5.3 VALHALL 166.7 25.6 3.1 0.0 200.1 96.0 11.4 1.6 0.0 110.5 VARG 5.2 0.0 0.0 0.0 5.2 0.5 0.0 0.0 0.0 0.5 VESLEFRIKK S4.6 3.1 1.1 0.0 59.8 14.3 1.1 0.0 0.0 15.4 VIGDIS 29.5 2.1 0.0 0.0 31.9 10.5 2.1 0.0 0.0 12.6 VISUND 42.9 50.5 5.1 0.0 103.1 37.5 50.5 5.1 0.0 97.7 ASGARD 71.4 190.7 27.6 42.0 35ti.5 __51.3 186.4 27.0 41.1 330.0 Total 3 823.1 2 803.0 1649 181.2- 7 120.6 500.8 2 186.8 111.3 132.3 4031.3 ~

PRODUCTION 41 280, I =Gar 200 I ,3.5

Figure 8.1 Total petroleum production 1981-2001 Figure 8.2 Crude oil production 1981-2001 (Source: MPEIMPD) (Source: MPEINPD)

1) The table specifics c.stiniated values. All estimates are subject to uncertainty 2) The factor applied in converting XGL from tonnes to standard cubic metres is 1.9 3) Fields approved for development but not on stream at 31 December (resource category 2) 4) Discoveries which the licensees have drcided to produce (resource category 3) 5) Negative arnounts for remaining reserves in certain fields indicate that the product is not reported under the volume originally recoverable. This applies to produced NGL and condrnsate. 6) Production from Sleipner East and Wmt is measured jointly. As a rcsult, their remaining reserves havt: also been combined.

a) Ra1dt.r includes Ringhorne b) Gullfiiks iiicludes Gullfaks West c) Gullfaks South includes Rimfaks and Gullwig d) Gyda includes Gyda South e) Sleipner East includes Loke f) 'I'ordis includes Borg and Tordis East g) Troll includes Togi

Table 8.2 Total petroleum production, mill scm oe. 1Source:MPD)

~ ~ ~~ 1971-1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Total

~~ Oil/NGL/cond 803 129.0 137.9 156.2 165.3 188.2 190.:1 182.3 181.9 194.7 198.1 2 529.9 ~~ ~~ Gas 349.1 25.8 24.8 26.5 27.8 37.4 42.9 44.2 48.3 49.7 ,532 730.0 ~~ ~~ Total 1152.1 154.8 162.7 183.0 196.1 225.6 233.2 226.5 230.2 244.4 251.3 3 259.9 ~~ ~ ~~ ~

42 PRODUCTION 300 250- Gas 4 0 uncemnty lmge 8 Condensate is IP90 P10) 280 NGL 200

~ 3o g Bd5escrnario ~ 200 oll b- 150~ E ; - 25 g 3 150 E 20 f 1 _" 100- 15 100 1 2 50 - 10 = 50 ~ I15 0 0 11rr1100

Figure 8.3 Production forecast for petroleum 2002 201 1 Figure 8.4 Forecast for Norwegian crude oil production (Source MPE/NPD) 2002-201 1 [Source MPE/NPD)

Production 2001 cent in 2010. By contrast. oil production is expected to remain around its present level for the next few Petroleum production from the NCS in 2001 years before starting to decline gradually. Figure 8.3 totalled roughly 251 mill scm oe. Crude oil shows expected petroleum output from the NCS, accountrd for 181 mill scm oe (3.1 mill b/d) of broken down into crude oil, NGL, condensate and this figure, gas for 53 mill scni oe and NGL (includ- gas. ing condensate) for 17 mill scm oe. This repre- Production forecasts involve considerable sented a rise from 2000, when overall petroleum uncertainties, such as the time when different fields production came to 244 mill scm oe. go off plateau, how fast their output might decline and when fields now under consideration will come on stream. Forecast production Other sources of uncertainty include the development of new tcchnolokq- and the recovery factor After a long period of continuous growth in pctro- for each field. In thct longer terni, the number and leum production. the developmenl in output has size of new discoveries and industry profitability are been moderate since 1996. Oil production (including also likely to influence the level of production. NGI,/condensate) in 2001 averaged 3.4 inill b/d oe, Figure 8.4 shows expected output of crude oil within the highest level so far achieved by Norway. Figure an uncertainty range. 8.2 shows historical production of crude oil on the Annual Norwegian gas sales have lain around NCS. 40-50 bn scni oe in recent years, but are expected to The share of gas in overall petroleum output is increase substantially. A future sales level of 100 bn expected to increase substantially in coming years, scm is regarded as a realistic scenario. from just over 20 per cent in 2001 to about 42 per

Possible development

2002 2004 2006 2008 2010

Figure 8.5 Dry gas deliveries from the NCS (Source. MPE:NPD)

PRODUCTION 43 Market status for Norwegian petroleum products

Norm price

~~~~gi~ncrude on

Sale5 of natural gas liquids (p1GI.f

Dry gas sales

Refining

Retail sales

~~och~m~cats 70 I x 2002U5D 1 Nominal pr ce USD

/,. T/ ,,,/,,,,,, 1975 1977 1979 19R 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001

Figure 9.1 Price of Norwegian crude oil 1975-2001 (Source MPE)

A governing principle of Norwegian policies on frequent oil price changes, the board has largely petroleum sales is that these will be made by fixed monthly norm prices tor crude oil.

commercial companies on the basi j of coniniercial The norni price must correspond to the price criteria within a general framework determined by at which petroleum could have been traded the authorities. This means that producers on the between independent parties in a free market. NCS sell crude oil on market terms. "Independent parties'' are dcfincd as buyers and sellers with no common interests which might influcnce the pricc agrccd.The norm price is fixed Norm price on a discretionary basis after an overall evaluation of market conditions, taking several types of trans- The Act of 13 June 1975 on taxation of subsea actions, reference markets and methods of evalua- petroleum deposits (the Petroleum Taxation Act) tion into account. provides the legal basis for an administrative dctcr- Norway's norni price regulations are framed to mination of pc.trolrum prices - the. norm price - for cover all types of petroleum produced on the NCS. the purpose of calculating tax and royalty For dry gas. contractual prices provide the basis of payments. Figure 9.1 shows the trend in prices for calculating liability to tax and royalty because dry Norwegian crude since 1975 in terms of the gas - unlike crude oil - is sold under long-terni average norm price. contracts. Authorisation to determine such norm prices The Petroleum Price Board has not set any for calculating royalty is provided by section 4-9, norm prices so far for NGL (ethane, propane, subsection 6 of the Petroleum Act. The norm price butanes and condensate).When no norm price is regulations of 25 June 1976, with subsequent fixed, prices actually obtained provide the basis for amendments, specify guidelines for determining calculating tax liability. these prices, and are framed to have general valid- ity for these three areas of application. For tax purposes, the norm price is applied to all petroleum Norwegian crude on the world market transactions, whether traded between independent parties or transferred internally. Daily Norwegian offshore production averaged 3.4 Authority to set provisional and final norm mill barrels of oil (including NGL) in 2001, and pricrs - and to decide whether such priccs should Norway ranked sixth among the world's leading oil not be determined for specified production areas - producers. Crude output was more or less has been delegated to the Petroleum Price Board. unchanged from 2000. The latter fixes norm prices in arrears - normally Since Norway consumes some 200 000 barrels for each quarter, but for a shorter period when this of petroleum products per day, its net exports of is considered desirable. In recent years, with crude oil and petroleum products (including NGL)

MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 45 Production Net exports

Saudi Arabia 8 70 Sud! Arabia USA 8 10 R"Wa R"iW 6 98 Norway lld" Ira" Mcx LO VeneZUela Noway UAE China N gem Veneruild Iraq Canada Kuwait LA€ .M?Xl'O 0 2 4 6 8 10 02468 mill b d mill b d

Figure 9.2 Production and net export of crude oil, incl NGL/condensate 2001 (Source: Petroleum Economics Limited)

Table 9.1 Norwegian crude oils marketed as different blends in 2002

__-~~~ Norwegian Crudes included in Shipped from Estimate- crude oil the various blends 1 000 bld ~ ~~~ ~~ ~ Ekofisk Ekofisk Terminal ('?&side) 522 Embla Gyda iiicl Gyda South Hod Eldfisk Tor Valhall Ula Tarnbar - ~ ~~~ ~ ~~ ~~ Statfjord Blend Statfjord Buoy/via Mongstad 468 Snorre Statfjord East fjord North na __ ~ ~ ~~ Oseherg Blend Oseberg incl. Oseberg West Terminal (Sture) 404 Oseberg East Oseberg South Veslefrikk Brage Huldra

Tune ~ Gullfaks Blend Gullfaks A Buoy/via Mongstad 311 Gullfaks B Gullfaks Vlrest Gullfaks South (incl Rirnfaks and Gullveig) Vigdis Visund ~~ ~ ~ Gullfaks C Gullfaks C Buoy/via Mongstad 75

~ ~- Tordis incl Rorg ~~

Brent Blend Murchison ~ Termini-(Sw~~ ~-2 ~ Forties Heimdal condensate Terminal (Cruden Bay) 10 Val? ~~ ~~~ -~ ~ Buoy 197 ~Draugen ~~~ Draugen~~ ~~ Heidrun Hridrun 167 ~~ ~~ Buoy/via Mongstad ~~ Norne Norne Buoy 179 -~~ ~~ ~~ -~~ Jotun Buoy 54 __ ~ ~~ Balder Buoy 68 Ringhoi ne -~ 36 Njord Njortl BUOY ~ - Glitne Glitne Buoy 31 ~~ Troll Oil Troll phase 2 Terminal (Mongstad) 316 ~~

Varg i'arg Buoy ~-8 Asgard Asgard Buoy 146 ___- -~

46 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS OthcrlDO'>. Cdriada 4 6?., USA 6 ia . Franc? 12%

Germany75%

Swedrn 5 6% - Nrtheilandr 14.7%

LJK22 9% - Norway 15 396

Figure 9.3 Shipments of Norwegian crude oil 2001X.Total:184.3 mill scm oe (8ource:NPDl *to first recipient

totalled about 3.2 mill b/d (incl NGI./condensate). price. That makcs these products less attractive as This puts Norway in third place after Saudi Arabia an alternativc to naphtha in petrochcmicals during and Russia among thc, world's leading net crude thc winter season. Figure 9.5 shows shipments of exporters. Norwegian NGL to the first recipient in 2001. Figure 9.3 shows shipments of Norwegian crudc in 2001 by the first recipient nation. For commcrcial and technical reasons, various grades Dry gas sales of oil are often marketed as a single blend. Both oil quality and flexibility in loading and storage affect Norwegian gas sales were negotiated from 1986 the pricc obtaincd. Table 9.1 illustrates how to 2001 by the Gas Negotiating Committee (GNJ), Norwegian crudes are marketed as different which comprised Statoil (chair), Norsk Hydro and blends. Saga Petroleum (until Hydro acquired Sagx). The GFIT was responsible for preparing and pursuing all gas sales discussions up to the point Sales of natural gas liquids (NGL) when contracts were signed. After that, the> autho- ritit.5 identifitd which field would be responsible NGL comprises ethane, propane. normal butane, foi fulfilling the contract, and which field- should iso-butane and condensate (see figure 9.4). deliver the gas. Roughly 17.4 million scni oe of NGL was produced In May 2001, the government resolved that from the NCS in 2001, including some 7.5 million sales of Norwegian gas through the GFU would scm oe in the form of condensate and 9.9 million bc, discontinued permanently in 2002. as NGI,. NGL output was about 30 per cent higher than in 2000. Definition of natural gas The European market for liquefied pctroleum gases (LPG - propane and butanes) can lie divided into three main seginents: heating (industrial and household fuels), petrochemicals and automotivc fuel (directly, blended with petrol or converted by alkylation to high-octane products). Heating constitutes about 60 per cent of the total market, fractions, also known as with petrochemical production accounting for 30 I c5+ per cent and automotive fuels for the remaining 10 Natural gasoline per cent. L Condensate 1)ernand for LPG from the heating market is high in the six winter months, which drives up the Figure 9.4 Definition of natural gas. (5ourcr:MPEi

MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 47 Other 128Co Belgium 6.7 96 Denmark8.046 Finland 2.2 40 USA 12.90~ Franie45ob

Germany 2.1 90 Netherlands 11 9 ?+ Sweden 10 1 '!b UK 4.0 ?c Spain 1 8 OL Norway 21.5 00 POlt"gall4 9i

Figure 9.5 Sale of NGL/condensate ZOOl*.Total: 16.4 mill scm oe. (5ource:NPD) *to first recipient

This decision was based on the view that the Ruhrgas, Thyssengas and BEB as well as growing maturity of the NCS, the opening of Distrigaz, Gasunie and Gaz de France. Similar European gas markets and changes in company deals were concluded by the Troll group with structures along the gas value chain meant that Austria in November 1986 and with Spain's producers on the NCS should have greater Enagas in April 1988. commercial freedom of action. The Gas Negotiating Committee (GFU) Discontinuing the GFU means that each signed an agreement with SEE the Dutch associa- producer company will henceforth be rcsponsihle tion of power producers, in September 1988. for marketing its own gas. In 1993, Norwegian gas sellers also concluded contracts on new gas deliveries with Distrigaz for power generation in Belgium, with gas distributor Dry gas agreements Verbundnetz Gas in eastcrn Germany, and with Figure 9.6 shows Norwegian dry gas exports in Ruhrgas to provide additioual supplies. 2001 by recipient. Further agreements followed with Gaz de Gas from Frigg was sold under a contract with France and Meeg (Mobil Germany) in 1994, and a British Gas signed in 1973. Supplementary agree- supplementary deal was agreed with the French ments for gas from Odin and the Frigg satellites company in 1995. were signed in 1980. Some fields have already Gas from Frsy has been delivered to IJK been abandoned and further shutdowns are companies since 1995. Irish buyers began receiv- c,xpectrd over the next f<,w years. ing part of the gas from this field in 1997. Gas deliveries from the Ekofisk area are made Supplementary deliveries were agreed with under four different agreemeIits.The Phillips Ruhrgas in 1996, while Italy's Snam contracted to group signed two contracts in 1973 and 1975 buy gas in January 1997. A contract was signed by respectively with a buyer group consisting of the GFIJ with Czech company Transgas in April of Germany's Ruhrgas, Dutch Gasunie, Belgium's the same year. Distrigaz and Gaz de France. These deals Associated gas from the Heidrun field is sold embrace the Phillips group's interests in all eight as feedstock for methanol production and other Ekofisk area fields, and were merged into a single applications at the 'I'jeldbergodden complex in agreement in 1990. mid-Norway. A framework agreement on gas deliveries A minor gas sales contract with Polish inter- from Statfjord, Heimdal and Gullfaks phase I was ests was concluded by Norwegian sellers in 1999. signed with European buyers in 1981 and followed The GFIJ negotiated a long-term agreement in later by final contracts. 2001 on substantial deliveries of gas to Poland, In May 1986, an agreement was signed starting in 2007. Gas from the planned Sncrhvit between the Troll licensees and Germany's development was also sold to IJS and Spanish

48 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS Italy 2 4 4 . Austria 1.89i Czech Republic 4.8 % .

Germany 38 2 Ob - Netherlands 7.3 "6 - Poland 0 6 ?a UK449n -

Figure 9.6 Norwegian dry gas exports 2001.Totalt: 50.5 bn scm (Source: NPD)

buyers, with deliveries due to start in 2006. the Esso plant at Slagcn near Oslo. Approximate Statoil concluded an agreement with BP in 2001 annual capacities are just over 10 and roughly 4.5 on annual gas deliveries to the UK over a 15-year million tonnes respectively. period. Tables 9.2 and 9.3 illustrate Norwegian production and export of petroleuni products in 1997- Norwegian dry gas in an international perspective 2001, broken clown into thr different qualities. Norway's dry gas cxports totalled 50.5 bn scm in 2001, an increase of about four per cent from 2000. Norway ranks as the world's third largest Retail sales exporter of pipeline gas, and its exports in 2001 represented some two per cent of world gas Figure 9.7 provides an overview of most Norwegian consumption -which is roughly 2 400 bn scm. The companies involved in retailing petroleum products, country is an important gas supplier to Europe, with their market shares. with Norwegian deliveries accounting for some 10 per cent of total west European gas consumption. Petrochemicals

Refining Statoil owns 50 per cent of the Borealis petrochemicals group, a leading producer of polyole- The Norwegian refining sector embraces two refi- fins (plastic raw materials) with its head office in neries: the Mongstad facility close to Kergen, and Copenhagen and some 6 000 employees.

Table 9.2 Norwegian production of petroleum products, 1 000 tonnes. (5ource:IEAreportingi

Product 1997 1998 1999 2000 2001

Petrol 3 418 3 233 3 204 3 398 3 306 Naphthalother gasolines 586 778 990 1324 1 088 Kerosine 1127 877 875 838 242 Medium distillates 7 126 6 921 7 279 8 174 8 008 Heavy fuel oil 1878 1997 1958 1856 1 683

-~ ~~ Total 14 135 13 806 14 306 15 590 14 328

- ~~ ~~

MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 49 Statoil 25 6% Others 3.1 46

Shell 25 5 “C Eso 23 2 9;

Jet44?o Hydro,‘Texaco 19 9%

Figure 9.7 Market shares 2001. 1Source: Norwegian Petroleum Institute)

Table 9.3 Norwegian exports of petroleum products, 1 000 tonnes. 1Source:StatisricsNorwayj

Product 1997 1998 1999 2000 2001

~~ ~~ Petrol 1 806 18’9 1830 2 068 2 9.52 Naphthalother gasolines 4 561 3 563 4 742 3 557 2 128 Kerosine 305 221 200 206 129 Medium distillates 3 681 3 760 3 485 3 501 3 835 Heavy fuel oil 1637 1428 1638 1488 1151

Total 11 990 10 804 11 895 10 821 10 195

I/S Norrtyl, which produces ethylene and ties producing plastic raw materials such as polypropylene as well as chemicals, is owncd 51 per cxthylcnc and polypropylene based on ethylene cent by Norsk Hydro (operator) and 49 per cent and propylene supplied by I/S Noretyl. by Borealis. Statoil and Conoco have a methanol plant at This company is located at Rafiies in Bamble Tjeldbergodden, which started production in local authority south of Oslo, where Hydro also 1997. operates chlorine arid VCM plants. Jotun Polymrr and Dyno Kjemigrupprn arr also In addition, Bamble is the site of Borealis facili- regarded as part of Norway’s petrochemicals sector.

50 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 51 Petroleum operations and 10 the environment Figure 10.1 Emissions to the air

Emissions to thc air and discharges to the sea by Emissions to the air the petroleum sector derive from such activities as exploration, development, production and Figure 10.1 shows the most important sources of transport of oil and gas. All these opera t'ions are air pollution from offshorc installations. necessary stages in oil and gas production. Emissions consist primarily of carbon dioxide (27 Emissions from Norway's petroleum business will per cent), nitrogen oxides (23 per cent), nmVOCs therefore be determined to some extent by the (64 per cent) and methane, and are substantial on level of activity, but continued tcchriological a national scale for the first three of thesc sources. progress and further optimisation of operations Figures in brackets represent the respective could help to loosen the tie between emissions shares of Norwegian emissions in 2000. and activity. Achieving this goal for carbon Offshore carbon dioxide and nitrogen oxide dioxide represents the biggest challengc. emissions derive mainly from energy generation The various emissions from offshore opera- on the installations, where natural gas represents tions contribute to different environniental the most commonly-used fucl. Some diescl oil is problems. Carbon dioxide and methane add to the also used. This means that more energy-rfficicnt grecnhouse effwt, while nitrogen oxides can lead production, combined with greater efficiency in to eutrophication (over-fer tilising) , acidification power generation, is important for efforts to limit and - in combination with non-methane volatile this type of emission organic compounds (nmVOC) - the formation of No technology is available today which can ground-level ozone. In addition, the long-term help to achieve a significant reduction in carbon impact of oil and chemical discharges on marine dioxide emissions at a cost lower than the present life is a cause for concern. carbon tax. On the other hand, increasing use is Studies have shown that emissions per unit being made of low nitrogen oxide burners which produced are low off Norway compared with can reduce emissions by up to 90 per cent per similar operations in other countries. The excep- turbine. tion is nmVOC emissions, which are relatively Energy requirements for Norwegian offshore high on the NCS because of extensive offshore production are expected to rise in the future, both loading. because transport distances to market will Norway's offshore operations are subject to a increase as more northerly gas resources come strict regime which ensures that this industry on stream and because the Iiiajor oil fields are takes account of environniental considerations. maturing and entering a phase of declining These requirements build partly on obligations output Since treatment and transport of produced accepted by the country through interuational gas is more energy intensive than liquids produc- environmental agreements, and partly on purely tion, the increase in Norwegian gas exports also national environmental targets. boosts energy demand.

PETROLEUM OPERATIONS AND THE ENVIRONMENT 53 Figure 10.2 Discharges to the sea

When a Mdmatures, its water cut increase - brought up from the reservoir along with oil and in other words, the volume of produced water as a gas is the principal sourcc of oil discharges to the proportion of total production goes up. A large sea. Despite extensive treatment, small oil part of an installation's energy requirements are droplets remain when this water is discharged. indcpendeiit of the level of production, and Oily drill cuttings and drilling fluids, which earlier cnergy demand also depends on thr total wcll- accounted for a substantial proportion of oil stream (oil, gas and water) rather than the output discharges by the offshore industry, are now of hydrocarbons. This helps to boost energy injected beneath the scabed or taken ashore for consumption per unit produced. further treatment. Gas flaring also emits carbon dioxide and Produced water is also being injected back nitrogen oxides. Resource management coiicerns below ground on a growing nuniber of ficlds. mean that flaring has long been kept at a low level Other methods for limiting volumes of produced off Norway, but it is still possibk to reduce emis- water are under dcvelopinent or being tested. In sions from flaring even further. Recycling flare addition, sinal1 amounts of oil are discharged from gas, extinguishing the pilot flanie on a number of storage cells in the big concrete gravity base fields and further improvements to operating structurcs, and in coolant water. Discharges also routines are among the available methods. occur in connection with accidents and spills. Most rimVC1C emissioris by the offshore Many types of chemicals arc used to keep industry derive from vaporisation during offshore petroleum operations stablr and secure. The bulk storage and loadiug of crude oil. New technology of chemical dischargc,s derive from drilling opera- has now bccn developed which allows an esti- tions, but residues of production chemicals are mated 70 per cent of such emissions to he re- also preseut in produced water. covcred. NmVOC cniissions are expected to Most of the chemicals consist of substances decline substantially because recovery equipment which form natural components in seawater or will be installed in line with government regu- soil. The usc of chemicals is strictly controlled, lations. and little or no environmental impact has brcn docuniented for most of the substances discharged. Discharges to the sea Continuous efforts are being made by the industry to replace environmentally-liarmf~il Figure 10.2 shows the principal sources of chemicals with less hazardous substances. discharges to the sea from petroleum operations. Chemicals which are bio-accurnulative or have The niost important of these are chemicals, oil disruptive effects on hormones will be phased and other organic compounds. Produccd water out.

54 PETROLEUM OPERATIONS AND THE ENVIRONMENT Relevant international environmental agreements oxides and nmV0Cs. Under the prevailing nitrogen International environmental problenis demand oxide protocol, Norwegian emissions must be measures at both national and international lcwk lower after 1994 than they were in 1987. This obli- Without a set of international agreements, national gation is currently being met by Norway. efforts to tackle global or regional environmental ’The requirement for nmVOC was that eniis- problems might be relativc4y ineffwtive or virtu- sions from the entire mainland and the ally useless. Norwegian economic zone south of the 62nd Norway has concluded several international parallel should be reduced by 30 per cent from the agreenients arid accepted obligations which also 1989 level in 1999. Norway failed to meet this create a framework for offshore operations commitment by the deadline, but the requirements through their impact on markets for oil and gas as now imposed for nmVOC will allow it to bc well as their requirements for national regulation fulfilled once the relevant measures have been of emissions. iniplemcnted. Adopted at the Rio conference in 1992, the UN Emissions of nitrogen oxldes, IiniI’OC, sulphur framework convention on climate change came into dioxide and ammonia arr regulated by the force in 1994. While key principles arc enshrined in Gothenburg protocol adopted in 1999. Its provisions the convmtion, binding obligatioris for the Industrial require Norway to reduce nitrogen oxide emissions countries were first established in the Kyoto to 156 000 tonnes by 2010, corresponding to a 29 per protocol of December 1997. ’This specifies quantified cent cut from the 1990 level. The commitment for and scheduled emission restrictions for greenhouse IimVOC is virtually unchanged from the one gases. accepted by Norway under the existing VOC The industrialised nations must collectively protocol. In addition, national emissions niust not reduce their annual greenhouse gas emissions in exceed 195 000 tonnes per year. 2008-12 by at least five per cent compared with the The most important international agreement 1990 level. Their national obligations can be met regulating discharges to the sea is the convention both through domestic action and by tiieasures in for the protection of the marine environment of other countries. The latter can involve the Kyoto the north-east Atlantic (Ospar).This convention mechanisms - international emission trading, aims to prevent pollution of these waters and to clean development and joint implementation - and protect them from being harmed by human activi- should be a supplement to national measures. ties. Ospar’s ministerial meeting in 1998 resolved Protocols have been adopted under the 1979 that redundant offshore structures in the area convention on long-distance transboundary air covered by the convention must be removed. pollution of the UN Economic Commission for Concrete installations and certain parts of Europe (ECE) to regulate emissions of nitrogen large steel structures are excluded from this

PETROLEUM OPERATIONS AND THE ENVIRONMENT 55 requirement. The commission mccting in 1999 Exploration will not be permitted where the disad- adopted a strategy for offshore oil and gas opera- vantages are greatest. Both Storting and govern- tions. ment can also impose special conditions on an area, Relevant European IJnion directives adopted in such as prohibiting drilling in certain periods. the European Economic Area will also contribute An environmental impact assessment must to shaping Norwegian environmental policies. have been carried out when an operator seeks official approval of development plans (PUD/PIO) for field installations, transport or landfall pipelines National measures and other petroleum facilities. This assessment must include a description of the environmental Impact assessments effect of expected emissions from the project, and Norway's Petroleum Act calls for tmvironmental must review the cost-benefit of alternative impact assessments to be carried out as part of incasures for reducing this impact. the input for decision-making at sevrral stages in The assessment is circulated widely for petroleum operations. Such studies are required conimcnt to ensure that all consequences of a before an area is opened to cxploration, in conncc- project are identified as fully as possible. tion with field and transport system developments, Measures to be implemented are determined as and when disposing of abandoned installations. part of the final approval of a project by the The MPE is responsible for ensuring that Storting or the government. environmental impact assessments are performed Before a licence expires or an installation is bcfore an area is opened for the award of explora- abandoned, the licensecs must submit a deconi- tion licences. Because the issut, of opening new missioning plan. This has to be accompanied by areas ranks as very important in terms of an an impact assessment covering relevant methods overall social evaluation and for local interests, it for disposing of the iiistallations concerned. The calls for comprehensive and detailed considera- authorities will consider the plan before reaching tion. An impact assessment is intended to clarify an abandonment decision. the environmental consequences of pctroleuni operations and possible pollution threats as well Carbon dioxide tax as the economic and social effects which could By virtue of the Act imposing taxes on carbon follow from the exploitation of petroleum reserves dioxidc emissions from offshore petroleum opera- in the area. tions, a tax on burning fossil fuels - primarily On the basis of such an assessment, the natural gas and diescl oil - which emit carbon Storting (parliament) undertakes an overall dioxidc was introduced with effect from 1 January assessment of the advantages and disadvantages 1991. From 1 January 2002, this tax is levied at a of pursuing petroleum operations in an area. rate of NOK 0.73 per litre of oil/scm of gas.

56 PETROLEUM OPERATION5 AND THE ENVIRONMENT Pollution Act much into account when formulating policies for Discharges to the sea from petroltmn operations the sector, but also the industry's commitment. are rcgnlated under the authority of the Pollution At the initiative of the oil industry, the Miljnsok Act. collaboration was established by the MI'E in 1995. The principal rulc applied when approving Its purpose is to strengthen and extend coopera- ncw free-standing developments off Norway is tion between the industry and the authorities so that they discharge no environnientally-hazardous that Norway's petroleum industry can contiriue to substances to the sea (zero discharge). Measures lie in the international forcsfront for cnvironmen- 011 existing installations will also be assessed in tally-appropriate and cost-effective operation. the light of a zero discharge philosophy. Miljrasok's members have included research From thti autumn of 2000, the release of institutes, the petroleum industry, environmental nmVOCs from crude oil storage and loading has organisations, fishcry interests and relevant been regulated under the Pollution Control Act. government agencies. The second phase of this collaboration was Cooperation with the industry concluded in 2000 with a report which included The strong focus on environmental aspects of recommendations on how to continuc the coopera- Norwegian oil and gas p~-oductionhas undouht- tion between industry and the authorities. Work is edly put Norway's petroleum business up with the now under way to follow up these recommendations, front runners in this area. in part through a new Environmcnt Forum That reflects not only the way the authorities established to follow up Miljnsok. This body held its have taken environmental considerations very first meeting in the autumn of 2001.

PETROLEUM OPERATIONS AND THE ENVIRONMENT 57 Legal and licensing 1 1 framework

Introduction Main features oft

Other key legal ~rov~si~n~ Introduction

Act no 72 of 29 Novembrr 1996 pertaining to ling. This licence grants no exclusive rights in the petroleum activities (the Petroleum Act) provides areas covered and does not entitle the holder to the overall legal basis for the liccming system conduct regular exploration drilling. which regulatrs petroleum operations in Norway. Before a production licence which permits Regulations undrr the Act were issued by Royal such drilling can be awarded, the area in question Ikcree of 27 June 1997. The Act and its regula- must have been opened for exploration (section 3- tions authorise the grant of permits and licences 1 of the Act). That can only happen after thr envir- to explore for, produce and transport petroleum onmental, economic and social impact of such and so forth. operations on other industries and adjacent Legal authority to tax this business is regions has been assessed. conferred by Act no 35 of 13 June 1975 wlating to Production licences are normally awarded taxation of subsea petrolc,uni deposits (the through liccnsing rounds. The government Petroleum Taxation Act). invites applications for a certain number of blocks The Norwegian offshore licensing system (section 3-5 of the Act). Companies can apply indi- comprises a number of documents which go into vidually or in groups. more detail on the rights and duties of the various Production licences are awarded on the basis parties. These documents are briefly outlined below. of objective, nc)Ii-discriiriinatory and published The European {inion's directive 94/22/EC on criteria. granting and using licences to explore for and The announcement specifies the terms and produce hydrocarbons (the licenting directive) criteria on which awards will be based. On the was approved by the Council of Ministers on 30 basis of applications reccived, the MPE puts May 1994. together a group of companies for each licence or A decision to incorporate this provision in can make adjustments to a group which has Appendix IV Energy to the European Economic submitted a joint application. The MPE appoints Area agreenient was taken by the joint committee an operator for this partnership (section 3-7 of the of the EEA on 5 April 1995, and came into effect Act), who is responsible for the daily conduct of on 1 September 1995. It applied to Norway as a operations in accordance with the trrms of the member of the EEA from the same date. The licence. Norwegian licensing system complies with the From the award of the licence covering the requirements of the directive. Statfjord field in 1973 to the 13th licensing round in 1991, state participation was a minimum of 50 per cent in each licence. The state's average Main features of the licensing system direct financial interest has declined from the 13th to the 1Gth round. Section 1-1 of the Petroleum Act specifies that the The Storting added a new chapter 11 to the proprietary right to subsea petroleum deposits on Petroleum Act, which specifies the main features the NCS is vested in the state. of the management system for the SDFI. On this This constitutes the legal basis for goverm basis, Petoro AS has been established as a wholly ment regulation of the petroleum sector. state-owned limited company to manage the SDFI. Under srction 2-1 of the Act, companies can All the SUFI'S assets belong to the state. Petoro's apply for a reconnaissance licence to make geolo- organisation, responsibilities and principal duties gical, petrophysical, geophysical, geochemical are described in Proposition no 36 (2000-2001) to and geotechnical surveys, includiiig shallow dril- the Storting, Recommendation no 198 (2000-2001)

LEGAL AND LICENSING FRAMEWORK 59 Nomination e Announcement Application --T, Award v Negotiation

Figure 11.1 Licensing round

to the Storting, Proposition no 48 to (2000-2001) Act). Providing all the licensees agrce. a licence to tlie Odelsting and Recommendation no 70 can be relinquished (section 3-13 of tlie Act). (2000-2001) to the Odelsting. See also chapter 3 on state organisation of petroleum operations. Joint operating agreement Section 3-3 of the Act makes the award of a production licence conditional on all the licensees Key documents and legal provisions in concluding a joint operating agreement. Similar in the licensing system many respects to company agrccments niade under civil law, this joint operating agreement Production licence regulates relations between the partners. The production licence regulates the rights and It forms the basis for day-to-day organisation duties of licensees in relation to the state. This and operation of the licence and for allouting any document supplements thc provisions of the earnings, and requires the licensees to establish a Petrolcwm Act and specifies detailed terms for management committee as their ultimate deci- each licence. A production licence entails an sion-making body. All licensees are represented exclusive riglit to explore for and produce petro- on this committee. The agreement also regulates leum within its specified geographical area the operator's duties and obligations on hchalf (section 3-3 of the Act). Ownership of the petro- of the partnership, and specifies the group's leum produced rcsts with the licensees. voting rulcs. Each licence is awarded tor an initial exxplora- tion period, which can last up to 10 years (section Accounting agreement 3-9 of the Act). A specified work obligation must The liccnsees are also required to conclude an be met during this period, including seismic accounting agreement with detailed provisions on surveying and/or exploration drilling and so forth the accounting and financial aspects of the part- (section 3-8 of the Act). nership. Providing the work obligation has been completed by the end of the period, the licensees Offer letter are generally entitled to retain up to half the acreage Before awarding production licencrs, the MPE covered by the liccnct. for a period of up to 30 years. will recommend to the government that specified An area fee is charged per square kilometre, as companies receive interests in the acreage being specified in detailed regulations (section 4-9 of the offcred. An offer letter is sent to each company

60 LEGAL AND LICENSING FRAMEWORK with details of the interests being offered and of Such agreements require the consent of the MPE. possihle operatorships. It also specifies the terms which will apply to the licence(s) on offer, and is accordingly regarded as a key document in thc Other key legal provisions award process. Section 4-2 of the Act requires licensees to submit Various agreements a plan for development and operation (PDO) to If a discovery extends across more than one the MPE for approval before they can start deve- production licence, the licensees are obliged to loping a petroleum deposit. conclude a unitisation agreement which ensures Under section 4-3 of the Act, the MPE is also appropriate utilisation of these resources (section 4- authorised to approvc plans for installation and 7 of the Act) and regulates rights to the discovery. operation (PIO) of facilities for transport and utilis- Interests in a unitised field are norrnally allocated ation of petroleum. in line with the way resources in the discovery Section 4-8 of the Act requires the MPE to divide between the production licences concerned. approve any use of such installations by others. Licensee interests in a unitised field will thereby Under section 4-10 of the Act, the King decides differ from their holdings in the separate production where and how petroleum is to be Brought ashore. licences covering the field. A unitisation agreement The Petroleum Act's section 5-1 also requires requires the MPE's approval. licensees, as a general rule, to submit a cessation A licensee can also conclude a pass-through plan two-three years before a licence expires or agreement with its foreign parent company which the use of a facility is terminated. The MPE will transfers interests in a licence to the Norwegian then decide on the disposal of these facilities branch of the parent (section 10-5 of the Act). (section 5-3 of the Act).

LEGAL AND LICENSING FRAMEWORK 61 2 Licensing rounds

, Sth-tOth lice 11th-16th ticensing rounds

Barents Sea project Awards outside licensin

North Sea rounds

.. The authorities can influence the pattern of operatorships for the first time. players on the NCS through policies on awarding Fiftren blocks were announced in 1978 for the new production licences and by giving or withhol- fourth licensing round, with eight awarded. This ding approval of transfers. The overall policy round included the award of block 31/2 - part of objective is to help secure a pattern which Troll - with Shell as oprrator. prornotrs the best possible resource management and which thereby lays a basis for creating the 5th-10th licensing rounds highest possible value and government rrvenucs. The fifth liccnsing round in 1979 was the first to include acreage north of 62"N, on the Halten 1st-4th licensing rounds Bank in the Norwegian Sea and the Troms~Patch in the Barents Sea. Divided into three parts, the The first blocks on the NCS were announced in round embraced the award of 12 production 1965 This round comprised all blocks in licences, covering an equal number of blocks, Norway's North Sea srctor (south of 62'N), with between 1980 arid 1982. the exception of those closest to the boundary Nine blocks were awarded in the sixth licensing with thc Swedish and Danish continental shelves. round in 1981, involving relinquished acreage in The Ministry received 11 applications covering the southern part of Norway's North Sea sector. 208 of the 278 blocks announced. In the same year, five blocks were awarded in the A total of 22 licences were awarded for 78 seventh round on the Trma Bank, a new area of blocks, making this the most comprehensive, the Norwegian Sea. All this acrragr has since licensing round off Norway. At the time, little was been relinquished. known about geological conditions on the conti- The eighth round in 1984 was the first to offer nental shelf and opportunities for selecting prom- blocks in all parts of Norway's continental shelf - ising blocks were fairly limited. the North, Norwegian and Karents Seas. Block Small areas were announced in the second 34/7 - containing part of Snorre - proved the licensing round in 1969, which aimed to allocate most desirable acreage in this round, and Saga some additional acrcage to existing production was appointed operator. licences. Block 25/1, which proved in 1972 to Acreage from the whole NCS was also included contain the Frigg field, was awarded in this round. in the ninth round the following year, when 11 The third round comprised 32 blocks, with 20 of production licences covering 13 blocks were these aum-ded in 1971,1976 and 1977. This round awarded. was the first in which Statoil received a 50 per The 10th round was divided into two parts. Part cent interest in each licence. Statoil, Saga A in 1985 was restricted to North Sea acreage, Petroleum and Norsk Hydro were also awarded while Part B the following year covered produc-

LICENSING ROUNDS 63 ,

tion licences in the newly-opened Nordland I1 area Fourteen production licences covering 34 full of the Norwegian Sea. A total of 17 blocks were or part blocks were awarded in the 16th licensing awarded in this round. round in 2000. All these licences are in the Norwegian Sca.

1 Ith-16th licensing rounds Barents Sea project The 11th licensing round in 1987, also divided into Parts A and B, awarded a total of 13 production In May 1997, production licences were awarded licences covering 22 full or part blocks. One of for seven areas of the Barents Sea, including four these was in the North Sea, one in the Mnre South as seismic arcas. The Barents Sea project was area of the Norwegian Sea, four on the Halten initiated because of the special challenges faced in Rank and seven in the Rarcnts Sea. Four of the these waters - both as a result of reduced oil Barents Sea licenccs involved key blocks. company intcrest and with regard to fishery and Part A of the 12th licensing round in 1988 environmental aspects. awarded 11 production licences covering 16 full or part blocks in the North Sea. The following year, Part R awarded 13 blocks in nine production Awards outside licensing rounds licences - threc (six blocks) in the Barents Sea, one on Nordland 11. three on the Halten Rank and The Statoil/Mobil group was awarded a produc- two (three blocks) on Msre I. tion licence in 1973 for blocks 33/9 and 33/12, The 13th licensing round in 1991 awarded 36 which proved to contain the Statfjord field. Mobil blocks in 22 production licences, including 12 in was appointed operator. Statoil took over the the North Sea, three in the Norwegian Sea and operatorship on 1 January 1987. seven in thc Karents Sea. Block 34/10 (Gullfaks) was awarded in 1978 Awards in the 14th licensing round in 1993 to Norwegian licensees alone. covered 31 blocks in 17 production licences, of I'art of Oseberg lies in block 30/9, and this which 11 were in the North Sea, four in the acreage was awarded in 1982 to Statoil, Norsk Norwegian Sea and two in the Barents Sea. Hydro and Saga Petroleum with Hydro as The 15th licensing round in 1996 awarded 46 operator. blocks in 18 production licences, which included I'roven in block 31/2, Troll extends into four in the North Sea and 14 in the Norwegian Sea. blocks 31/3, 31/5 and 31/6. This acreage was the This was the first round completed within the subject of a supplementary award in 1982, with framework of the European Union's licensing Statoil, Hydro and Saga as operator for the respec- directive (see chapter It). tive blocks.

64 LICENSING ROUNDS 90 - T 45 000 Number of production licences g RO P 70 60 $ 50 2 40 4 30 ; 20 1 10 =o 1965 1971 1977 1983 1989 1995 2001

Figure 12.1 Awards per year (Source NPDl

In 1985, production licence 112 was awarded (supplement to Kinghorne), 028C (carve-out from as supplementary acreage to the East Frigg liccm Balder), 037C (supplement to Murchison), 134K sees. The relinquished part of block 25/1 was re- (supplement to Kristin), 169B1 and 169B2 awarded in 1986 with Hydro as the operator. (supplement to Grane) and 171B (supplement to Production licence 185 went as mpplementary Oseberg South). acreage to the Brage lictwsees in 1991. Five carve-outs from existing production Production liccnce 085R was awarded to the licences were implemented in 2001 - 029R Troll licensees in 1992. with production licence (supplement to Glitne) , 033B (supplement to 018B going to thc Ekofisk licensees in 1995. In the Valhall), 048R (carve-out from Glitne), 052 B latter year, production liccnces 050B and 114B (supplement to Huldra) and 072B (carve-out from were> also awarded to the licensees on Gullfaks Sigyn) . and Yme respectively. Eight production licences were anarded in 1998. 'l'hcw included five carve-outs, where part of the North Sea round 1999 acreage in existing licences was partitioned off and made the subject of separate production licences - Fourteen production licences in the Norwegian in this case 019C, 037B, 0533, 102R and 103R. North Sea were awardrd in Junr 1999 in this The other licences awarded were 114C, 12813 round. Eleven of these were in new areas, while and 237 as supplementary acreage for the Yme, the remaining three represented supplementary Norne and Asgard fields respectively. acreage to existing discoveries or fields - PLs Six production licences were awarded outside 050C, 055B and 249, supplementing 34/10-23 licensing rounds in 1999. One of these, production Gamma (Gullfaks), Brage and 25/44 S Vale licence 250, added supplementary acreage to the respectively. Ormen Lange discovery made by well 6305/8-1. These awards totalled 22 full or part blocks. The three others were carve-outs. These cases covered production licences 001B, 027B and 028B. In addition, production licences 050C and North Sea round 2000 055B were awarded as supplementary acreage to Gullfaks and Brage respectively. Six production licences were awarded in this round There were eight carve-outs from existing during April 2001. Two of these awards took the production licences in 2000 - OOGB (Valhall), 006C form of seismic areas. The licences cover seven full (remaining acreage in former production licence or part blocks, while the seismic acreage embraces 006 after Valhall and Tor were carved out), 027C eight blocks.

LICENSING ROUNDS 65 Table 12.1 Awards and licensing rounds

Licensing round Year Number of blocks Licences

1St 1965 78 001-022 2nd 1969-71 14 023-036 -- BI 33/9-12 (Statfjord) 1973 2 037 3rd 1974-76 11 038043 BI 119,2411 1-12,1518-9,33/2-5,15/2-5 197G77 9 044-049 - ~ BI 34/10 (Gullfaks) 1978 1 050 4th 1979 8 051-058 5th parts 1 and 2 1980-81 6 059-064 5th part 3 1982 6 073-078 6th 1981 9 065072 ~ BI 3019' 1982 1 079 7th 1982 5 080-084 BI 3113-5-6 (Troll) 1982 3 ~ 8th 1984 17 9th 1985 13 101-111

~ B25/21 1985 1 112 10th A 1985 8 113-120 10th B 1986 9 121-128 ~~~ BL5/1' 1986 1 129 ~ 1lthA 1987 11- 130-137 11th B 1987 11 138-142 -- 12th A 1988 16 143-153

~ ~~ 12th B 1989 13 154-1f2

~ ~ 13th 1991 36 163-184 BI 3117' 1991 1 185 BI 3113-5-6' 1992 3 085B ~- 14th 1993 31 18E4202 BI 1/61 (Ekofisk) 1995 1 018B

~~ ~~ BI 34/10' (Gullfaks) 1995 1 050B BI 9/51 (Yme) 1995 1 114B 15th 1996 46 203-220 -~~ Barents Sea project2 1997 25 221-236 BI 711 23 1998 2 019c

66 LICENSING ROUNDS Licensing round Year Number of blocks Licences BI 3311 23 1998 1 037R BI 30163 1998 1 053B BI 25/53 1998 1 102B ~~ ~~ BI 251073 1998 1 103R ~ ~~~~~~ ~ ~ ~~ BI 9/1,9/2 and 9/4 (Yme) 1998 3 114c BI 6508/1 (Norne) 1998 1 128B BI 640713 (Asgard) 1998 1 237 North Sea round 1999 1999 21 238-249 BI 16/13 1999 1 00lB ~~ ~~~ BI 25/83 1999 1 027B BI 25/103 1999 1 028R BI 30/1,34/10 (Gullfaks) 1999 2 ______050C BI 31/4 (Braqe) 1999 1 055B BI 630618 (Ormen Lange) 1 1999 ~. 250 16th 2000 34 251-264

BI 25/8 (Ringhorne)3 2000 1 027C ____~ BI 25/103 2000 1 02sc- ~~~ ~ BI 037 (Mur~hison)~ 2000 1 037c ~~ ~ ~~ ~ ~ BI 650611 1 IKristinP 2000 1 134B BI 2511 1 (Grane)3 2000 1 169B (1 and 2) ~~~~~ ______~______~~ ~~ BI 30112 (Oseberg South)3 2000 1 171B ~~ ~ ~~ ~~~ ~~ North Sea round 20002 2001 7 265-270 BI 1516 (Glitne)l,3 2001 1 029B BI 2/11 (Valhall)l,3 2001 1 033B

BI 1515 (Glitne)lj3 2001 1 ~ 048B ~~ BI 3013 (Huldra)l,3 2001 1 052B BI 16/7’r3 2001 1 072B

1’Ihe award does not cornprise the entire block. Parts of the arra were awardrd as seismic areas which will he geographically delimited later. 3 Carve-out.

LICENSING ROUNDS 67 Exploration operations

Seismic surveys Exploration drilling New discoveries Future exploration ;x ;x I

Figure 13.1 Exploration wells completed per year. [Source: NPDl

Exploration operations seek to idcntify new Exploration drilling commercial petroleum resources and to help maintain a stable and steady level of activity, and Exploration drilling embraces wildcat and lay the basis for future development, production appraisal wells A wildcat is the first well on a and government revenues. prospect, while an appraisal is drilled to determine About 60 per cent of the NCS has been opened the extent and scope of a discovery. for exploration, and roughly ninc lier cent of this During 2001. 29 exploration wells - 22 wildcat acreage is covered by production licences. Across and seven appraisal - were completed or tenipora- such a large area, the basis for clxploration will rily abandoned on the NCS. These included 14 (12 naturally differ in terms of resource potmtial, estab- wildcat and two appraisal) in the North Sea, 10 (six lished infrastructure and environmental chal- wildcat and four appraisal) in the Norwegian Sca lenges. and five (four wildcat and one appraisal) in the Barents Sea. Operators for the wclls complcted in 2001 were Statoil 12. Norsk Hydro nine, BI' two, Seismic surveys Conoco two, Saga one, Esso one, Cliwron one and kipone. Seismic surveys acquire data which provide infor- A total of 1 015 exploration wells had been mation about the sub-surface rocks. Sound waves completed or temporarily abandoned off Norway transmitted through the Earth's crust are at 31 December 2001. reflected back to surface vessels and allow a The future level of exploration will be deter- picture to bc formed of rock formations decp mined by a number of factors, with oil price expec- underground. tations, the scope of licence awards and discove- Data collected in this way falls into several cate- ries leading to appraisal drilling as the most impor- gories. 'Ihe commonest are two-dimensional (2D) tant. and three-dimensional (3D), with the latter involving more extensive, and also expensive, data gathering than the former. New discoveries Seismic mapping of the NCS began in 1962, and a total of 7 282 433 km had been shot by the end Petroleum was discovered in 12 of the exploration of 2001. Of this, 3 468 677 km was collected above wells drilled in 2001. Seven of these were in the 62"N since surveying began there in 1969. The North Sea, four in the Norwegian Sea and one in NPD, oil companies and survey contractors shot the Barents Sea. 748 911 kni of seismic lines in 2001. The overall incrtwe in resources from explora-

EX P LO RAT1 0 N 0 P E RAT1 0 N S 69 2u' -10' 0 20 30' 40' 50' 30'

. . .. ,--

7Y 10 Recoverable resources -'> 8 (bn scm oe) Jan Mayen 6 4 2 0

70'

60'

2r 30'

Figure 13.2 Exploration status. (5ource:NPDl

70 EX PLO RAT10 N OPE RAT10 N S tion operations in 2001 is estimated at 33-38 mill and Gullfaks can only be considered after further scm oil and 15-22 bn scm gas. Oil resources exploration in the area. proven by exploration are on a par with 2000. Since Statoil made two small oil and condensate most of the oil discoverics were made close to discoveries in the Tampen area, both of them close cxisting infrastructure, a riuniber of them could he to Gullfaks. Ou(~of these, 34/10-44 (Rinifaks profitable even though they are small by com- Lunde) , represents an exploration model which parison with fields in production today. Gas has been little pursued in this area. The discovery resources proven by exploration in E001 were provides a small but interesting addition to smaller than expected, and belo- the volume of Gullfaks South's resources. gas produced during the year. Two oil discoveries were made by Norsk Hydro All discoveries in the North Sea during 2001 in wells 30/6-26 arid 30/6-27 west of Osebcrg. were made in Jurassic rocks, with most of them Overall, they represent resources which will form found close to existing fields in the Tampen and part of plans for furthcr dcvclopincnt of the area. Oseberg areas. In addition, Norsk Hydro found oil and gas in well Norsk Hydro made two oil finds in the Tampen 15/12-12 south of Varg. area - 34/7-31 (Borg North) just to the north of Four new finds, all in Jurassic rocks, were Tordis and 34/8-12 south of Visund. Both are recorded in the Norwegian Sea. Two Rere made considered promising far futurc utilisation of by Statoil. The larger of these, well 6506/11-7 planned and existing infrastructure in the area. north of Kristin, contained light oil. The other was They also give grounds for optimism over additional a small gas find in well 6!06/I-I, close to Erlend. finds in the area. Conoco made a minor oil find with 6507/7-13, The 34/7-31 discovery already forms part of a north oi the Heidrun, while Norsk Hydro notched planned devclopmmt oi the central area between up a small gas discovery west of Midgard in well Vigdis, Statfjord East and Tordis. A possible devel- 6507/11-6. opment of the 34/8-12 discovery between Visund In the Barents Sea, Statoil made a discovery in

Table 13.1 New discoveries on the NCS in 2001 (recoverable resources). (Source:NPDl

Well Operator Hydrocarbon type Oillcondensate Gas mill scm bn scm

~ 650611 1-7 Statoil oil/gas 10 5 1511 2-1 2 Norsk Hydro oil/gas 6-7 2-3

~~ ~~~ ~ ~~ ~ 3417-31 Norsk Hydro oil 6

~~ ~ ~ ~~ 3016-26 Norsk Hydro oil 3-5 ~~~ ~ ~ 722817-1 Statoil oil/gas

~~ 650717-13 Conoco oil 1-2 ~~ ~~ ~ 3016-27 Norsk Hydro oil 1-2 ~~ ~~ ~~~ 640611-1 Statoil oil/gas <1 1 3411 0-44 Statoil 011 <1 3411 0-43 Statoil oil

~~ ~ ~~ Total 33-38 15-22

EXPLORATION OPERATIONS 71 Triassic rocks in the North Cape Basin. This is will be to award new acreage annually in the considered interesting since it represents the first North Sea. well in this part of the basin and applied an explo- Six production licences were awarded in April ration niodel which has not been tested earlier in 2001 under the North Sea round 2000. Exploration these waters. Norsk Agip also drilled an appraisal wells with interesting drilling targets arc planned well on its 7122/7-1 Goliat discovery, with positives in several of these licences during 2002. results. A total of 68 full or part blocks close to existing infrastructure were put on offer during September in the North Sea round 2001. Awards Future exploration will probably be made in the spring of 2002.

Substantial undiscovered oil and gas resources Norwegian Sea remain on the NCS. Future exploration will be 'l'hc biggest contribution to resource growth on pursued in both new and established exploration the NCS over the past decade has come from regions of the North, Norwegian and Barents exploration in the Norwegian Sea. A number of Seas. Future exploration above the 62nd parallel substantial finds have been made in these waters will face niajor challenges, such as geological ovcr this period. Infrastructure has also been estab- understanding, technological solutions for deep lished, helping to boost the conimerciality of small water, establishing infrastructure and protecting discoveries. the environment. These factors have prompted great interest in Exploration strategy and operations must rcflcct exploring this part of the NCS. New production the special challenges faced in each area of thc NCS. licences have been awarded approximately every two-four years in the Norwegian Sea over the past North Sea decade. The most recent allocation took place in The North Sea is the most-explored part of the the 16th offshore licensing round in the spring of NCS. Geological understanding is good over 2000. much of the area. A leading challenge is to prove In coming years, the general rule will be to resources close to existing and planned infra- hold a licensing round for the Norwegian Sea structure. Even small discoveries may show good every other year. That will contribute to greater profitability when rational use is made of these predictability in licensing policy. facilities. Fourteen licences were awarded in the 16th Explomtion could also be extended to less well- round, split between deepwater areas and the known parts of thc North Sea in coming years. rather shallower Halten and hnn Terraces. These waters are likely to be a core area for explo- Interesting exploration wells are planned in ration in the long term. As a general rule, the aim several of these licences during 2002.

72 EXPLORATION 0 P E RAT IO N S Thc 17th licensing round on the NCS was tion licences awarded in these waters involved announced in Deccmber, covering 32 full or seven arcas in the Barents Sea project in May partial blocks in thc Norwegian Sea. These 1997. Companies operating in these waters must include both deepwater areas and rather shal- take particular account of environniental and lower areas north of the Dmnn Terrace and in the fishing interests. Helgeland Basin. Awards will probably be made in Exploration wells werc drilled in two produc- the second quarter of 2002. tion liccmccs in the Barents Sea during 2001. One of these yielded an interesting discovery for Barents Sea Statoil in the North Cape Basin. In addition, Petroleum opcrations in the Barents Sea face Norsk Agip has drilled an appraisal well on the major challenges. Terms for working in this 7122/7-1 (Goliat) discovery made in '2000. The region have been modified with a view to encou- results of this well are considered positive for raging continued cxploration. The latest produc- further progress with this find.

20 22' 24" 26" 28"

72'

71"

Area awarded

~ 40-

20" 24" 26" 28'

EX P LO RAT1 0 N 0 P E RAT10 N S 73 14 Fields in production Explanation of the tables in chapters 14-16

Interests in fields do not necessarily correspond with interests in the indiviclual production licences (unitiaed fields or ones for which the sliding scale has been exercised have a different composition of interests than the production licence). Because interests are shown up to two decimal places, licensee holdings in a field may add up to less than 100 per cent. The sale of about 6.5 per cent of the SDFI's assets in March 2002 is reflected in the interests shown. Otherwise, interests are shown at 1January 2002.

Estimated production for 2002 in individual fields takes account of the production regulation introduced for the first half of 2002.

Recoverable reserves originally present refers to reserves in resource classes 0, 1,2 and 3 in the NPD's classification system (see the definitions below).

Recoverable reserves remaining refers to reserves in resource classes 1,2 and 3 in the NPD's classification system (see the definitions below).

Resource class 0: Petroleum sold and delivered Resource class 1: Reserves in production Resource class 2: Reserves with an approved development plan Resource class 3: Reserves which the licensees have decided to develop

Explanation of the figures

Oil: 1 000 b/d W Gas: bn scm/year W NGL mill tonnes/year Condensate: mill scm/year

FIELDS IN PRODUCTION 75 59

- ---!

I riAreaawarded I 1 : ::s Condensate j

2' 4'

Southern North Sea sector

The southern part of Norway's North Sea sector became important for the country at an early stage, with Ekofisk as the first Norwegian offshore field to come on stream more than 30 years ago. Ekofisk serves as a hub for petroleum operations in this area, with surrounding developments utilising the infrastructure which ties it to continental Europe and Britain. Norwegian oil and gas is exported from Ekofisk to Teesside in the UK and Emden in Germany respectively. Although production from this part of the NCS has lasted for many years, remaining resources in the region are substantial. Oil and gas output is accordingly expected to continue beyond another three decades.

76 FIELDS IN PRODUCTION 0111 000 bld 1 Gar bn scmlyear

Ekofisk area (incl Ekofisk, Eldfisk, Embla and Tor)

Ekofisk, Eldfisk and Embla

Blocks and Blocks 2/4 and 2/7 - production licence 018. production licences Both blocks awarded in 1965.

Progress On stream in 1971

Operator Phillips Petroleum Company Norway

Licensees TotalFinaElf Exploration Norge AS 39.90% (rounded off to Phillips Petroleum Company Norway 35.11% two decimal places) Norsk Agip A/S 12.39% Norsk Hydro Produksjon a.s 6.65% Petoro AS1 5.00% Statoil ASA 0.95%

Recoverable reserves Originally present: Remaining at 31.12.01: 600.6 mill scm oil 229.1 mill scm oil 225.9 bn scm gas 72.8 bn scm gas 18.8 mill tonnes NGL 5 mill tonnes NGL

Production Estimated production in 2002: Oil 376 000 b/d Gas: 5.9 bn scm NGL 0.5 mill tonnes

Transport Oil is piped through the Norpipe system to Teesside in the UK, while gas is piped to Emden in Germany.

Investment Total investment is likely to be NOK 168 bn (2002 value). NOK 136.7 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Phillipsbasen,Tananger

~~ 1 Petoro AS serves as the licensee for the SDFI.

FIELDS IN PRODUCTION 77 Ekofisk area (incl Ekofisk, Eldfisk, Embla and Tor) cont

Tor

Blocks and Block 2/4 - production licence 018. Awarded in 1965. production licences Block 2/5 - production licence 006. Awarded in 1965.

Progress Government approval: 1973 On stream in 1978

Operator Phillips Petroleum Company Norway

Licensees TotalFinaElf Exploration Norge AS 48.20 !% (rounded off to Phillips Petroleum Company Norway 30.66 !% two decimal places) Norsk Agip A/S 10.82 % Norsk Hydro Produksjon a.s 5.81 !% Petoro AS1 3.69 !% Statoil ASA 0.83 %

Recoverable reserves Originally present: Remaining at 31.12.01: 25.8 mill scm oil 4.4 mill scm oil 11.4 bn scin gas 0.8 bn scm gas 1.2 mill tonnes NGL 0.7 mill tonnes NGL

Production Estimated production in 2002: Oil: 5 100 b/d Gas: 0.05 bn scm NGI,: 0.006 mill tonnes

Transport Oil is piped through the Norpipe system to Teesside in the UK, while gas is piped to Emden in Germany.

Investment Total investment is likely to be NOK 8.4 bn (2002 value). NOK 7.8 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Phillipsbasen,Tananger

Petoro AS serves as the licensee for the SIIFI.

78 FIELDS IN PRODUCTION The Ekofisk area comprises the Ekofisk, Eldfisk, Embla and Tor fields, which lie in 70-75 metres of water. In addition conie Albuskjell, Cod, Edda and West Ekofisk, which have ceased production. This area has been developed in five phases. Ekofisk and its central processing fac loped in two stages, with production starting in 1971. Cod and West Ekofisk represented phase three. Oil was initially loaded into tankers on the fields, but has been piped since 1975 through the Norpipe line to Teesside in the UK. Pipeline transport of gas through Norpipe to Emden in Germany began in 1977. Approved by the authorities in 1975, the fourth development phase covered Albuskjell, Eldfisk and Edda. The last of these came on stream in 1979. The fifth phase was prompted by a desire to improve recovery from Ekofisk, and the 2/4-K water injection platform began operation in December 1987. Expanded several times, water injection capacity on the field is currently just under one mill b/d. The Edda platform was modified in 1988 to receive gas from the Tommeliten field. A decision to develop the Embla field south of Ekofisk was taken in 1990, with production starting in 1993. A new plan for development and operation of the Ekofisk field (Ekofisk 11) received approval in 1994, when the licence for the Ekofisk area was extended to 2028. A new Ekofisk field centre comprising two platforms has been installed on the field. The U4-X wellhead platform was put in place during the autumn of 1996, followed by the 2/4-J processing and transport installation in August 1997. Ekofisk I1 came on stream in August 1998, and is expected to produce for the next 30 years. The Ekofisk, Eldfisk, Embla and Tor fields are tied back to the new field centre, and will thereby remain on stream. Ordinary production from Cod, Edda, Albuskjell and West Ekofisk has ceased. A total of 29 platforms are installed in the Ekofisk area. In connection with the development of the new field centre, many of these installations have already been shut in. On the basis of the cessation plan for Ekofisk I submitted to the authorities in the autumn of 1999, it was resolved in December 2001 to remove 14 steel structures and the topside on the concrete Ekofisk tank to land for recycling of their materials. The bulk of this removal work is due to be completed by 2013. The plan for development and operation of Eldfisk water injection was approved in 1997. It involves a new platform, 2/7-E, with equipment for water injection, gas lift and gas injection on the Eldfisk field, tied back to one of the existing installations by a bridge. The development was completed in 2000. Declining pressure in Ekofisk has caused seabed subsidence, and operator Phillips Petroleum initiated efforts in 1985 to safeguard the platforms against this effect. Six of nine steel platforms in the Ekofisk centre were therefore jacked up by six metres in 1987, and a protective concrete wall was installed around the Ekofisk tank in 1989. Seabed subsidence has slowed substantially after waterflooding stabilised the pressure. Since production started in 1971, the seabed has subsided by about seven metres. The new platforms, which came on stream in 1998, have been designed to cope with up to 20 metres of seabed subsidence.

FIELDS IN PRODUCTION 79 Glitne

Blocks and Block 15/5 - production licence 048R. Awarded 2001. production licences Block 15/6 - production licence 029B. Awarded 2001.

Progress Government approval: September 2000. Production start-up: 29 August 2001.

Operator Statoil ASA

Licensees Statoil ASA 58.9 !% TotalFinaElf Exploration Norge AS 21.8 4 Det Norske Oljeselskap AS 10.0 !% Pelican AS 9.3 !%

Recoverable reserves Originally present: Remaining at 31.12.01: 3.6 mill scni oil 2.8 mill scm oil

Production Forecast production in 2001: Oil: 31 000 b/d

Investment Total investment is likely to he NOK 887 mill (2002 value) NOK 887 mill (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

Glitne was proven in 1995 and lies in 110 metres of water 40 kni north-west of the Sleipner area. Its development solution is based on leasing the Petvojurl 1 production ship, which is tied to four production wells and a water injector. Oil from Glitne is processed and stored on the vessel before being transferred to shuttle tankers. Associated gas is used for fuel or gas lift, with surplus gas being injected back below ground.

80 FIELDS IN PRODUCTION Condenrate:mill rcmlyear H NGLmill tonneslyear O6 -0.3

1996 1998 2000 2002

Cungne

Block and Block 15/9 - production licence 046. Awarded 1976. production licence

Progress Government approval: August 1995 Production start-up: April 1996

Operator Statoil ASA

Licensees Statoil ASA 52.6% Esso Exid& Prod Norway AS 28.0% TotalFinaElf Exploration Norge AS 10.0% Norsk Hydro Produksjon a.s 9.4%

Recoverable reserves Originally present: Remaining at 31.12.01: 10.1 bn scm gas 10.1 bn scm gas 1.3 mill tonnes NGI, 0.8 mill tonnes NGI, 3.1 mill scm condensate 1.5 mill scm condensate

~ Production Estimated production in 2002: Gas: 0.17 bn scm NGL: 0.17 mill tonnes Condensate: 0.50 mill scm

Investment Total investment is likely to be NOK 0.91 bn (2002 value). NOK 0.91 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

Proven in 1982, Gungne is a satellite of Sleipner East and lies in 83 metres of water. It came on stream in April 1996 through a well drilled from Sleipner A. An additional well to the field was completed in 2001.

FIELDS IN PRODUCTION 81 011:1 000 b/d NGL:miIi tonneslyear g0J03

1990 1993 1996 1999 2002

Gyda (incl Gyda South)

Block and Block 2/1- production licence 019B. Awarded 1977. production licence Hock 1/3 - production licence 065. Awarded 1981.

Progress Government approval: June 1987 Production start-up: June 1990

Operator KP Norge AS ~~- Licensees BP Norge AS 56% Pelican AS 34% Norske AEDC A/S 5% Norske Moeco A/S 5%

Recoverable reserves Originally present: Remaining at 31.12.01: 34.1 mill scin oil 3.8 mill scm oil 5.8 bn scm ras 0.6 bn scm gas 1.8 mill tonnes NGL 0.1 mill tonnes NGL

Production Estimated production in 2002: Oil: 13 500 b/d NGL 0.026 mill tonnes

Investment Total investment is likely to be NOK 13.5 bn (2002 value). NOK 12.6 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Sola

The Gyda field was proven in 1980, and has been developed with an integrated steel platform in 66 metres of water. Oil is piped to a tie-in with the Ula pipeline and on via the Ekofisk Centre to Teesside, while gas goes through a dedicated pipeline to the Ekofisk Centre for sale to the Ekofisk group. Government approval to develop the small Gyda South satellite was given in 1993. This field is being drained with two extended-reach wells drilled from the Gyda platform. Gyda South came on stream in 1995.

82 FIELDS IN PRODUCTION 0111000 b/d H NGL mill tonnerlyeai

A I OM 4 2002

Hod

Block and Block 2/11 - production licence 033. Awarded 1969. production licence

~~~ ~~~ ~~ __ Progress Government approval: June 1988 Production start-up: September 1990

Operator BP Norge AS

Licensees Amerada Hess Norge AS 25% BP Norge AS 25% Enterprise Oil Norge AS 251 TotalFinaElf Exploration Norge AS 25%) ~- Recoverable reserves Originally present: Remaining at 31.12.01: 7.8 mill scni oil 0.9 mill scm oil 1.6 bn scin gas 0.3 bn scm Tas 0.2 mill tonnes NGI.

~ ~ Production Estimated production in 2002: Oil: 6 500 b/d NGI,: 0.007 mill tonnes

Investment Total investment is likely to be NOK 2.01 bn (2002 value) NOK 1.98 bn (2002 value) had been invested at 31.12.01

~ Operating organisation Stavanger

Main supply base Phillipsbasen/Akerbasen,Tananger

Hod has been developed with a single unstaffed wellhead platform in 72 metres of water, remotely controlled from the Valhall field 13 km further north. Oil and gas are separated and metered on the Hod platform, and piped as a two-phase flow for final processing on Valhall.

FIELDS IN PRODUCTION 83 Gar bn scmlyear Condensate mill scmlyear

Sleipner West

Block and Block 15/6 - production licence 029. Awarded 1969. production licence Blocks 15/8, 15/9 - production licence 046. Awarded 1976.

Progress Government approval: December 1992 Production start-up: August 1996

Operator Statoil ASA

Licensees Statoil ASA 49.50% (rounded off to two Esso Expl & Prod Norway AS 32.24% decimal places) TotalFinaElf Exploration Norge AS 9.41% Norsk Hydro Produksjon as 8.85%

Recoverable reserves Originally present: Remaining at 31.12.011: 104.0 bn scm gas 90.3 bn scm gas 6.9 mill tonnes NGL 6.2 mill tonnes NGL 27.0 mill scm condensate 13.1 mill scm condensate

Production Estimated production in 2002: Gas: 10.01 bn scni NGL 0.5 mill tonnes Condensate: 2.13 mill scm

Investment Total investment is likely to be NOK 21.7 bn (2002 value). NOK 17.9 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

Combined for Sleipner West and East

Sleipner West was proven in 1974 and lies in 110 metres of water. It has been tied back to Sleipner East, and shares the same operations organisation. Sleipner West is produced through two installations: the Sleipner B wellhead platform and the Sleipner T gas treatment facility. Unprocessed wellstreams from Sleipner B are piped the 12 kilometres to Sleipner T, which is linked by a bridge to Sleipner A on the Sleipner East field. Carbon dioxide is removed from the wellstream on the T platform and injected into a sub-surface formation. The gas is piped to continental Europe while its condensate is landed at Wsb. Plans call for precompression to start on Sleipner T in the autumn of 2004.

84 FIELDS IN PRODUCTION Gas: bn scmlyear Condenrate:mill rcrnlyear

Sleipner East Block and Block 15/9 - production licence 046. Awarded 1976. production licence

Progress Government approval: December 1986 Production start-up: August 1993

Operator Statoil ASA

Licensees Statoil ASA 49.6 % Esso Expl & Prod Norway AS 30.4 % Norsk Hydro Produksjon a.s 10.0 % TotalFinaElf Exploration Norge AS 10.0 %

Recoverable reserves Originally present: Remaining at 31.12.01': 55.2 bn scm gas 90.3 bn scm gas 11.3 mill tonnes NGL 6.2 mill tonnes NGL 2.5.2 mill scm condensate 13.1 mill scm condensate

Production Estimated production in 2002: Gas: 3.55 bn scm NGL 0.55 mill tonnes Condensate: 1.57 mill scm

Investment Total investment is likely to be NOK 32.9 bn (2002 value). NOK 31.5 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

1 Combined for Sleipner West and East.

Sleipner East was discovered in 1981 and lies in 82 metres of water. It has been developed with the integrated Sleipner A production, drilling and quarters platform, two templates for subsea wells, a riser platform and a flare stack. The gas is piped to continental Europe while its condensate is landed at Kfirst0. The Loke satellite has been developed with a single subsea well tied back to Sleipner A. After the Ty formation had been drained in 1997. the well was extended to the Hugin/Skagerrak formation and brought back on stream in 1998. It has been decided to develop Sigyn (see chapter 15) in block 16/7 with full wellstream transfer to Sleipner A.

FIELDS IN PRODUCTION 85 Oil: 1 000 bid NGL'rnill tonneslyear 0.08

, I 2001 2002

Tambar

Blocks and Block 1/3 - production licence 065. Awarded 1981. production licences Block 2/1- production licence 019B. Awardvd 1977.

Progress Government approval: April 2000 Production start-up: 15 July 2001

Operator BP Norge AS

~~ ~ ~ ~~ -~ Licensees BP Norgr AS 55% Pelican AS 45%

Recoverable reserves Originally present: Remaining at 31.12.01: 7.2 mill scm oil 6.7 mill scm oil 2.4 bn scm gas 2.4 bn scm gas 0.3 mill tonnes NGL 0.3 mill tonnes NGL

Production Forecast production in 2002: Oil: 27 700 h/d NGL 0.06 mill tonnes

~ ~~ ~~ ~~ ~ - ~~~ Investment Total itivrstrnent is likely to be NOK t.3 hn (2002 value). NOK 1.3 bn @OW! value) had been invested at 31.12.01. Operating organisation Stavanger

Main supply base Sola

Tambar was proven in 1982 and lies in 68 metres of water, about 16 km south-east of Ula and roughly 12 kin north-west of Gyda. The field has been developed with an unstaffed wellhead platform tied back to Ula. Its production is exported to Ula for processing and onward transport by pipeline via Ekofisk to Teesside in the UK. Gas from Tambar is being injected into 171a to help improve recovery from this field.

86 FIELDS IN PRODUCTION 0111 000 bld NGL mill tonneslyear 150 I

U la Block and Block 7/12 - production licence 019. Awarded 1965. production licence ~______~~______Progress Government approval: May 1980 Production start-up: October 1986

Operator RP Norge AS ____~____ Licensees RP Norge AS 80% Svenska Petroleum Exploration A/S 15% Pelican AS 5%

Recoverable reserves Originally present: Kemaining at 31.12.01: 77.9 mill scm oil 15.6 mill sctn oil 3.7 bn scin gas 0.3 mill tonnes NGL 2.6 mill tonnes NGL -~ ~___ Production Estimated production in 2002: Oil: 21 100 b/d NGL 0.028 mill tonnes

Investment Total investment is likely to be NOK 18.8 bn (2002 value). NOK 18 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Sola

Proven in 1976, Ula lies in about 70 metres of water and has been developed with three conventional steel platforms - for processing, drilling and quarters respectively. Oil is carried by the Ula pipeline to Ekofisk and on through Norpipe to Teesside.

FIELDS IN PRODUCTION 87 I Oil. 1 WO bid NGLmill tonneshear

Va Iha I I

Blocks and Block 2/8 - production licence 006B. Awarded 2000. production licences Block 2/11 - production licence 033B. Awarded 1969.

Progress Government approval: June 1977 Production start-up: October 1982

Operator BP Norge AS ___~ Licensees BP Norge AS 28.09% (rounded off to two Amerada Hess Norge AS 28.09% decimal places) Enterprise Oil Norge AS 28.09% TotalFinaElf Exploration Norge AS 15.72%

Recoverable reserves * Originally present: Remaining at 31.12.01: 166.7 mill scm oil 96 mill scm oil 25.6 bn scm gas 11.4 bn scm gas 4.1 mill tonnes NGL 1.6 mill tonnes NGL

Production Estimated production in 2002: Oil: 72 000 b/d NGL 0.11 mill tonnes

Investment * Total investment is likely to be NOK 47.7 bn (2002 value) NOK 30.8 bn (2002 value) had been invested at 31.12.01

Operating organ isa t ion Stavangrr

Main supply base Phillipsbasen/Akerbasen,Tananger

Incl Valhall flanks and Valhall water injection

A landing permit was awarded in 1977 for the Valhall and Hod fields. Valhall has been developed in 70 metres of water with platforms for drilling, production/compression and quarters. An updated plan for development and operation was approved in 1995, with a wellhead platform installed in the same year. Two 20-inch pipelines, for oil and gas respectively, link Valhall to the Ekofisk centre. In connection with the Ekofisk I1 development, a new 24-km gas line from Valhall ties directly into the Norpipe gas trunkline to Emden. Oil is piped via Ekofisk to Teesside. Plans for development and operation for Valhall water injection and Valhall flanks were approved by the King in Council in September 2000 and November 2001 respectively. Both these projects aim to improve recovery from the field.

88 FIELDS IN PRODUCTION 0111 000 bid

40 m

Varg Block and Block 15/12 - production licence 038. Awarded 1975. production licence

Progress Government approval: May 1996 Production start-up: December 1998

Operator Norsk Hydro Produksjon as

Licensees Norsk Hydro Produksjon as2 42% Petoro AS 30% Statoil ASA 28%

Recoverable reserves Originally present: Remaining at 31.12.01: 5.2 mill scm oil 0.5 mill scm oil

Production Estimated production in 2002: Oil: 8 300 b/d

Investment Total investment is likely to be NOK 4.8 bn (2002 value). NOK 4.8 bn (2002 value) had been invested at 31.12.01.

Operating organisation Oslo

~ Main supply base Tananger

1 Petoro AS serves as the licensee for the SDFI.

2 PGS has acquired Norsk Hydro's interest in this field, and could take over the operatorship (subject to approval by the authorities).

Varg was proven in 1984 and lies in 84 metres of water south of Sleipner East. The field has been developed with a wellhead platform and a production ship which provides integrated oil storage. These two units are linked by flexible flowlines for oil production as well as water and gas injection, and by umbilicals for power supply and control. The wellhead platform is normally unstaffed. Oil is transferred to shuttle tankers from the production ship via a discharging system at the stern of the latter. The production ship was sold in 1999 to Petroleum Geo Services (PGS), which also took over management responsibility for the vessel. PGS has acquired Norsk Hydro's interest in this field, and could take over the operatorship (subject to approval by the authorities). The cessation plan for Varg was approved by the King in Council in November 2001, but the exact date for a final shutdown remains to be clarified.

FIELDS IN PRODUCTION 89 62 62'

61'

60'

Northern North Sea sector

The northern part of Norway's North Sea sector embraces the Frigg/Heimdal, Troll/Oseberg, Fram/Gjm and Tampen areas. Although by and large mature, these parts of the NCS will continue to contribute a large proportion of Norwegian oil and gas production and play an important role in the transport infrastructure. Heimdal is developing into a gas centre. Troll occupies a very important place in gas deliveries from the NCS, but has also become a substantial oil producer. Traditionally an oil province, Oseberg is set to increase its gas deliveries. Tampen contains several of Norway's largest oil fields. Although this is a mature area, its resource potential remains considerable. Fram/Gjm ranks as a relatively immature part of the NCS, and contains both oil and gas. The first field in this area, Fram West, is due to come on stream in 2003.

90 FIELDS IN PRODUCTION 0111000 bld

~~~~20

1999 2000 2001 2002

Balder (incl Ringhorne)

Blocks and Block 25/11 - production licence 001. Awarded 1965. production licences Block 25/8 - production licence 027. Awarded 1969. Block 25/8 - production licence 027C. Awarded 2000. Blocks 25/8 and 25/11 - production licence 169. Awarded 1991. Progress Government approval February 1996 Production start-up: October 1999 - Operator Esso Expl& Prod Norway AS

~ Licensee Esso Expl& Prod Norway AS 100%

~~ ~~ Recoverable reserves Originally present: Remaining at 31.12.01: 72.4 mill scm oil 63.5 mill scm oil 2.9 bn scni gas 2.9 bn scni gas

Production Estimated production in 2002: Oil 68 000 b/d

~ Investment Total investment is likely to be NOK 22.9 bn (2002 value). NOK 15.9 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

Balder was proven in 1967 and lies about 85 km north of the Sleipner area and 190 km west of Stavanger. The water depth is roughly 125 metres. Balder has been developed with a production ship tied to subsea- completed wells. Oil is processed and stored on the ship before being transferred to shuttle tankers. The Storting approved the Ringhorne development in May 2000. Covering several structures close to Balder, it involves an integrated drilling, well and quarters platform with first-stage processing. This will be tied back to the Balder ship for further processing and export of the oil. The platform is supplemented with two subsea wells - for production and water injection respectively - tied back directly to the ship. While the subsea producer came on stream in May 2001, the platform is due to start production towards the end of 2002.

FIELDS IN PRODUCTION 91 011 1000 bid W Gas bn scrnlyear 120 06

80 04

40 02

1993 1996 1999 2002

Brage

Blocks and Block 30/6 - production licence 053B. Awarded 1998. production licences Block 31/4 - production licence 055. Awarded 1979. Block 31/7 - production licence 185. Awarded 1991.

Progress Government approval: March 1990 Production start-up: September 1993

Operator Norsk Hydro Produksjon a.s

Licensees Norsk Hydro Produksjon a.s 24.44% (rounded off to two Paladin Resources Norge AS 20.00% decimal places) Esso Expl& Prod Norway AS 16.34% Petoro AS1 14.26% Statoil ASA 12.70% Fortum Petroleum AS 12.26%

Recoverable reserves Originally present: Remaining at 31.12.01: 44.9 mill scm oil 5.8 mill scm oil 2.6 bn scm gas 0.8 bn scm gas 0.7 mill tonnes NGL 0.1 mill tonnes NGL

Production Estimated production in 2002: Oil: 34 300 b/d Gas: 0.13 bn scm NGL 0.039 mill tonnes

Investment Total investment is likely to be NOK 16.2 bn (2002 value). NOK 15.4 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mongstad

I’etoro AS serves as the licensee for the SDFI.

The Brage field has been developed in 140 metres of water with an integrated steel production, drilling and quarters platform. Production began in 1993 and went off plateau in 1998. Oil goes by pipeline to Oseberg A for onward transmission through the Oseberg Transport System (On) to the Sture terminal near Bergen, while gas is carried in a line tied to Statpipe for onward transport. A plan for development and operation of the Sogne Fjord formation was approved in October 1998. One well in this formation is currently producing, and several more are under consideration.

92 FIELDS IN PRODUCTION Gar bn rcmlyear B H NGL mill tonneslvear I5 0.06

10 0.04

5 0 02

1977 1982 1987 1992 1997 2002

Frigg

Blocks and Blocks 25/1 and 30/10 - production licence 024. Awarded 1969. production licence 60.82 per cent lies on the Norwegian side, 39.18 per cent in the UK sector.

Progress Government approval: June 1974 Production start-up: September 1977

Operator TotalFinaElf Exploration Norge AS

Licensees TotalFinaElf Exploration Norge AS 28.67% (rounded off to two Elf Exploration UK plc 26.12% decimal places) Norsk Hydro Produksjon a.s 19.99% Total Oil Marine plc 13.06% Statoil ASA 12.16%

Recoverable reserves Originally present: Remaining at 31.12.01: 121.6 bn scm gas 7.7 bn scm gas 0.5 niill scm condensate

Production Estimated production in 2002: Gas: 0.61 bn scm. Condensate: 0.0024 mill scm Production is expected to cease in 2004.

Investment Total investment is likely to be NOK 34 bn (2002 value). NOK 34 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

FIELDS IN PRODUCTION 93 The unitisation agreed by the Frigg partners, which gives Norway a 60.82 per cent share, was approved by the UK and Norwegian authorities under a treaty between the two countries on joint exploitation. Production started in 1977 and reached plateau in October 1979. Frigg went off plateau in October 1987. Located in about 100 metres of water, the field installations also processed Froy's oil and gas from the summer of 1995 until the latter field ceased production in March 2001. In addition, Britain's Alwyn field utilises the Frigg installations, while gas from North-East Frigg, Odin, East Frigg and Lille-Frigg was processed there until production from these fields ceased in May 1993, August 1994, Ilecember 1997 and March 1999 respectively. The government decided not to acquire the North-East Frigg. East Frigg, Odin and Lille-Frigg installations. A cessation plan for Frigg was submitted to the authorities in November 2001.

94 FIELDS IN PRODUCTION 0111 000 b/d Gar bn rcmlyear

Gullfaks (incl Gullfaks West)

______~ Blocks and Block 34/10 - production licence 050. Awarded 1978. production licences Block 34/10 - production licence 050B. Awarded 1995.

Progress Government approval October 1981 (Gullfaks phase I -platforms A and 13). Production start-up: December 1986

~ Operator Statoil ASA

Licensees Statoil ASA 61% Petoro AS' 30% Norsk Hydro Produksjon as 9%

Recoverable reserves Originally present: Remaining at 31.12.01: 335.2 mill scni oil 49.2 mill scm oil 22.2 bn scm gas 2.7 bn scm gas 2 mill tonnes NGL 0.5 mill tonnes NGI,

Production Estimated production in 2002: Oil: 153 000 b/d Gas: 0.46 bn scm NGL 0.052 mill tonnes

Investment Total investment is likely to be NOK 89.3 bn (2002 value). NOK 79.5 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply bases Coast Center Base, Sotra og Flors

~ 1 Petoro AS serves as the licensee for the SDFI.

Gullfaks was discovered in 1978 and lies in 130-220 metres of water. The field has been developed with three concrete gravity based platforms. Gullfaks A and C are integrated production, drilling and quarters units, while oil and gas from Gullfaks B are piped to the A or C installations for further treatment and storage. Stabilised oil is stored in the A and C platforms and loaded into tankers via buoys. Rich gas is being injected back into Gullfaks from 2002.

FIELDS IN PRODUCTION 95 The Gullfaks installations form an important part of the infrastructure in the Tampen area. The wellstream from Tordis is transferred to and processed on Gullfaks C, while stabilised crude from Vigdis and Visund is stored on and shipped from the A platform. Development approval for the small Gullfaks West satellite was given by the King in Council in January 1993. This field is being drained by a horizontal well drilled from Gullfaks B. Draining Gullfaks Lunde through wells drilled from Gullfaks C was approved in November 1995, and this field came on stream in 1996. In recent years, Gullfaks A and C have been modified to receive and process oil and gas from Gullfaks South. This satellite has been developed with subsea wells remotely operated from the A platform (see the next section).

96 FIELDS IN PRODUCTION 0111 000 bld Gas bn rcrnlyear

Gullfaks South (incl Rimfaks and Gullveig)

Blocks and Block 34/10 - production licence 050. Awarded 1978. production licences Block 34/10 - production licence 050B. Awarded 1995. Block 33/12 - production licence 037B. Awarded 1998.

Progress Government approval (phase I): March 1996 Government approval (phase 11): June 1998 Production start-up (phase I): October 1998 Production start-up (phase 11): October 2001

Operator Statoil ASA -~ ____- Licensees Statoil ASA 61% Petoro AS1 30% Norsk Hydro Produksjon a.s 9%

Recoverable reserves Originally present: Remaining at 31.12.01: 40.2 mill scm oil 31.1 mill scm oil 47.4 bn scm gas 46.9 bn scm gas 5.8 mill tonnes NGL 5.8 mill tonnes NGL

Production Estimated production in 2002: Oil: 70 000 b/d Gas: 2.82 bn scm NGL 0.35 mill tonnes

~~ Investment Total investment is likely to be NOK 25.4 bn (2002 value). NOK 18.5 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply bases Coast Center Base, Sotra og Flora

1 Petoro AS serves as the Iicensee for the SDFI

Gullfaks South, which also includes the separate Rimfaks and Gullveig structures, is a satellite to Gullfaks and lies in the same water depth. The licensees have pursued a phased development of Gullfaks South. Tying in this field makes it possible to extend the producing life of Gullfaks to about 2014. Gullfaks South phase I embraces the production of oil and condensate. Associated gas is injected back into the reservoirs. This phase comprises eight subsea installations tied back to Gullfaks A for processing, storage and loading of oil and condensate.

FIELDS IN PRODUCTION 97 Phase I1 embraces production and export of the gas resources and associated liquids. The development solution is based on subsea installations tied back to Gullfaks A and C. Gas production from Gullfaks South began in the autumn of 2001. After processing, rich gas will be transported to Urst0 via a new pipeline which ties into Statpipe. After removal of the NGL, lean gas will be piped on to continental Europe. Oil and condensate will be stabilised, stored and loaded by existing facilities on the platforms. In connection with phase 11, Gullfaks C has been upgraded to expand its gas processing and export capacity. A corresponding upgrade will be implemented on the A platform up to the autumn of 2003.

98 FIELDS IN PRODUCTION Oil 1 000 bid Gas bn rrrniyear 12 6

4 2

1986 1990 1994 1998 2 2

Heimdal

Block and Block 25/4 - production licence 036. Awarded 1971. production licence

~ ~~ Progress Government approval: June 1981 Production start-up: December 1985

Operator Norsk Hydro Produksjon a.s

~~~ Licensees Marathon Petroleum Norge A/S 23.80% (rounded off to two Petoro AS1 20.00% decimal places) Statoil ASA 20.00% Norsk Hydro Produksjon as 19.27% TotalFinaElf Exploration Norge AS 16.76% AS Ugland Rederi 0.17%

Recoverable reserves Originally present: Kemaining at 31.12.01: 6.9 mill scm oil 0.8 mill scm oil 41.8 bn scm gas 0.3 bn scm gas Production Estimated production in 2002: Oil: 700 b/d Gas: 0.28 bn scm Production is expected to cease in 2002. Heimdal will continue providing processing and transport services as a gas centre to 2010 and beyond.

Investment Total investment is likely to be NOK 18.41 bn (2002 value). NOK 18.38 bu (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Dusavik

1 Petoro AS serves as the licensee for the SDFI.

The field was declared commercial in 1974, and the government exercised its option to secure participation in 1982. Heimdal has been developed with an integrated steel platform in 120 metres of water. In 1998, the MPE received development plans for the Heimdal gas centre, which involved installing a new riser platform as well as modifying and upgrading the existing installation. The MPE approved the plan for development and operation of the Heimdal gas centre in February 1999, and the project came on stream in 2000. It ensures long-term operation of the Heimdal platform by using its capacity to process gas from Huldra and other surrounding fields.

FIELDS IN PRODUCTION 99 011.1 WO b/d Gar: bn scmlyear 40 ,

2001 2002

Huldra

Blocks and Block 30/2 - production licence 051. Awarded 1979. production licences Block 30/3 - production licence 052R. Awarded 2001.

Progress Government approval: February 1999 Production start-up: November 2001

Operator Statoil ASA

Licensees Petoro AS 31.96% (rounded off to two TotalFinaElf Exploration Norge AS 24.33% decimal places) Norske Conoco A/S 23.34% Statoil ASA 19.66% Paladin Resources Norge AS 0.50% Svenska Petroleum Exploration A/S 0.21%

Recoverable reserves Originally present: Remaining at 31.12.01: 5 tnill scm oil 4.9 mill scm oil 12.9 bn scm gas 12.8 bn scm gas 0.1 mill tonnes NGL 0.1 mill tonnes NGL

~~~~ Production Estimated production in 2002: Oil: 28 000 b/d Gas: 3.19 bn scm NGL 0.027 mill tonnes

Investment Total investment is likely to be NOK 6.5 bn (2002 value) NOK 6.1 bn (20W value) had been invested at 31.12.01.

Petoro AS serves as the licensee for the SDFI.

Huldra was proven in 1982 and lies in 125 metres of water. It has been developed with a normally unstaffed wellhead platform remotely operated from Veslefrikk 16 km away. Condensate is piped to Veslefrikk B for processing and onward transport to the crude oil terminal at Sture through the Oseberg Transport System (OTS). The rich gas is piped 145 km to the Heimdal field for processing and export to customers via either the Statpipe/Norpipe system to continental Europe or the Vesterlrd line to the UK.

100 FIELDS IN PRODUCTION 0111 000 b/d #IGar bn rcrnlyear

IO4 03

Jotun

Blocks and Block 25/8 - production licence 027B. Awarded 1999. production licences Block 25/7 - production licence 103B. Awarded 1998.

____~~~ ~~______~~ ~ ~___ Progress Government approval: June 1997 Production start-up: October 1999

Operator Esso Expl & Prod Norway AS

~ ~~ ~~ Licensees Esso Expl6i Prod Norway AS 45.00% Enterprise Oil Norge AS 45.00% Norske Conoco A/S 3.75% net Norske Oljeselskap AS 3.25% Petoro AS1 3.00%

Recoverable reserves Originally present: Remaining at 31.12.01: 31.1 mill scm oil 17.6 mill scni oil 0.8 bn scm gas 0.3 bn scni gas

Production Estimated production in 2002: Oil: 53 500 b/d Gas: 0.05 bn scm

Investment Total investment is likely to be NOK 9.8 bn (2002 value). NOK 9 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Dusavik

1 Petoro AS serves as the licensee for the SDFI

Jotun comprises the Elli, Elli South and Tau West reservoirs, proven in 1994 and 1995. The field lies about 25 km north of Balder and 165 km west of Haugesund, in 126 metres of water. It has been developed with a floating production, storage and offloading (FPSO) unit and a wellhead platform. Ship and platform are tied together by flowlines for oil and gas production and for water injection, as well as power and control cables. The wellhead platform is normally unstaffed. Oil production is transported by shuttle tankers. Gas will be exported through a pipeline tied into the Statpipe system.

FIELDS IN PRODUCTION 101 Murchison

Block and Block 33/9 - production licence 037C. Awarded 2000. production licence The Norwegian share is 22.2 per ccnt, while the British share is 77.8 per cent.

Progress Production start-up: September 1980

Operator Kerr-McGee North Sea (UK) Limited

Licensees Kerr-McGee North Sea (UK) Limited 68.72% (rounded off to two Statoil ASA 11.52% decimal places) Ranger Oil (lJK) Limited 9.08% Mobil 1)cvelopnient Norway A/S 3.33% Norske Conoco A/S 2.68% Esso Expl Sr Prod Norway AS 2.22% A/S Norske Shell 2.22% Enterprise Oil Norge AS 0.23%

Recoverable reserves Originally present: Remaining at 31.12.01: (Norwegian share) 13.6 mill scm oil 0.5 mill scm oil 0.4 bn scm gas 0.1 bn scm gas 0.4 mill tonnes NGI, 0.1 mill tonnes NGL

Production Estimated production in 2002: (Norwegian share) Oil: 2 300 b/d NGL 0.002 mill tonnes

Investment The Norwegian share of total investment is likely to be NOK 7 bn (2002 value). NOK 6.9 bn (2002 value) had been invested at 31.12.01.

Operating organisation Aberdeen, Scotland

Main supply base Peterhead, Scotland

An integrated steel production, drilling and quarters platform has been installed on Murchison, which was discovered in August 1975. A unitisation agreement for Murchison was concluded by its British and Norwegian licensees in 1979. Both Norwegian and UK shares of the oil and NGL are landed through the Brent system to Sullom Voe in Shetland, with the gas piped to St Fergus on the Scottish mainland.

102 FIELDS IN PRODUCTION Oseberg (incl Oseberg West) Blocks and Block 30/6 - production licence 053. Awarded 1979. production licences Block 30/9 - production licence 079. Awarded 1982.

Progress Government approval: June 1984 Production start-up: December 1988

Operator Norsk Hydro Produksjon a.s

Licensees Petoro AS1 37.67% (rounded off to two Norsk Hydro Produksjon a.s 34.00% decimal places) Statoil ASA 14.00% TotalFinaElf Exploration Norge AS 10.00% Mobil Development Norway A/S 4.33%

~ Recoverable reserves Originally present: Remaining at 31.12.01: 348 mill scm oil 55 mill scm oil 95 bn scm gas 90.1 bn scm gas

~~ ~ Production Estimated production in 2002: Oil: 176 000 b/d Gas: 2 bn scm

Investment Total investment is likely to be NOK 73.6 bn (2002 value). NOK 68.2 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mongstad

1 Petoro AS serves as the licensee for the SDFI.

The first development phase for Oseberg comprised a two-platform field centre at the southern end of the field. Oseberg A is a production and quarters platform on a concrete gravity base structure, while Oseberg B is a drilling and injection platform with a steel jacket. The second development phase embraced Oseberg C, a steel production, drilling and quarters platform which stands roughly 14 km north of the field centre. Total processing capacity for Oseberg is about 500 000 barrels of oil per day.

FIELDS IN PRODUCTION 103 The platforms stand in around 100 metres of water. Reservoir pressure in Oseberg is maintained by gas, water, and water alternating gas (WAG) injection. Injection gas has been received by Oseberg until now from the Togi subsea module on Troll. These supplies are expected to cease during 2002. Gas from the Oseberg West satellite is injected in the phase I area. Oil from Oseberg as well as Oseberg South, Osebery East, Urage and Veslefrikk is piped through the Oseberg Transport System (OTS) to Sture near Bergen. Oseberg D, a steel platform with gas processing and export fac es, was tied to the field centre by a bridge in the spring of 1999. Gas deliveries to continental Europe began from Oseberg in October 2000 through a new pipeline which ties into the Statpipe system at Heinidal. Gas and condensate from the Tune field is due to start flowing to the field centre in the autumn of 2002. After removal of the condensate, the gas will be injected into Oseberg. The Oseberg East and Oseberg South satellites are also tied back to the field centre installations for oil and gas processing.

104 FIELDS IN PRODUCTION 0111 000 b/d E Gas bn iim/yeai

774 7

Oseberg South

~~ _____ -- Blocks and Block 30/9 - production licence 079. Awarded 1982. production licences Block 30/9 - production licence 104. Awarded 1985. Block 30/12 - production licence 171B. Awarded 2000.

Progress Government approval: June 1997 Production start-up: February 2000

- ~ ~~~__~____~ Operator Norsk Hydro Produksjon a.s ______~ Licensees Norsk Hydro Produksjon as 34.00% Petoro AS1 26.38% Statoil ASA 18.22% TotalFinaElf Exploration Norge AS 10.00% Norske Conoco A/S 7.70% Mobil Development Norway A/S 3.701 ~- __- Recoverable reserves Originally present: Remaining at 31.12.01: 54 mill scni oil 48.1 mill scm oil 7 bn scm gas 7 bn scm gas

Production Estimated production in 2002: Oil 76 000 b/d Gas: 0.81 bn scrn

Investment Total investment is likely to be NOK 12.6 bn (2002 value). NOK 9.5 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mongstad

1 Petoro AS serves as the licensee for the SDI4.

Comprising several structures south of Oseberg, the Oseberg South field was proven during 1984 in about 100 metres of water. Six of its structures are included in the approved development plan. The latter involves a platform for partial processing of the oil before it is piped to the Oseberg field centre for further processing and transport to land through the Oseberg Transport System (OTS) line. Gas production is injected back underground, and possible export of these reserves will occur in a later phase. The northern part of the field is being produced through wells drilled from the Oseberg field centre. Oil production from Oseberg South began in February 2000 through a well drilled from the field centre. The platform came on stream in September 2000 and is expected to continue producing until 2028.

FIELDS IN PRODUCTION 105 Oil: 1 000 bld Gas. bn rcmlyear

1999 2WO 2W1 2002

Oseberg East

Block and Block 30/6 - production licence 053. Awarded 1979. production licence

Progress Government approval: October 1996 Production start-up: May 1999

Operator Norsk Hydro Produksjon a.s

Licensees Petoro AS1 35.0% Norsk Hydro Produksjon a.s 34.0% Statoil ASA 14.0% TotalFinaElf Exploration Norge AS 10.0% Mobil Development Norway A/S 7.0%

Recoverable reserves Originally present: Remaining at 31.12.01: 24.5 mill scm oil 17.2 mill scm oil 0.8 bn scm gas 0.8 bn scm gas

Production Estimated production in 2002: Oil: 54 000 b/d Gas: 0.05 bn scm

Investment Total investment is likely to be NOK 6.7 bn (2002 value). NOK 5.9 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mongstad

Petoro AS serves as the licensce for the SIIFI

Located in 160 metres of water north-east of the unitised Oseberg field and south of Veslefrikk, Oseberg East was proven in 1981 and has been developed with a platform for quarters, drilling and first-stage separation of oil, water and gas. Crude is piped to Oseberg A for further processing and onward transport via the Oseberg Transport System (OTS) to Sture near Bergen.

106 FIELDS IN PRODUCTION 15

Snorre (incl Snorre B)

Blocks and Block 34/4 - production licence 057. Awarded 1979. production licences Block 34/7 - production licence 089. Awarded 1984. ~____- Progress Government approval: May 1988 Production start-up: August 1992

~ Operator Norsk Hydro Produksjon a.s -~ Licensees Petoro AS1 30.00% (rounded off to two Norsk Hydro Produksjon a.s 17.65%1 decimal places) Statoil ASA 14.40% Esso Expl & Prod Norway AS 11.16Yl Idemitsu Petroleum Norge AS 9.60% RWE-DEA Norge AS 8.88% TotalFinaElf Exploration Norge AS 5.95% Amerada Hess Norge AS 1.18% Enterprise Oil Norge AS 1.18% ____ Recoverable reserves Originally present: Remaining at 31.12.01: 231.6 mill scm oil 140 mill scm oil 8.9 bn scm gas 4.8 bn scm gas 6.7 mill tonnes NGL 4 mill tonnes NGL

Production Estimated production in 2002: Oil: 228 000 b/d Gas: 0.15 bn scm NGL 0.07 mill tonnes

Investment Total investment is likely to be NOK 62.4 bn (2002 value). NOK 51.2 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply base Flor0

1 Petoro AS serves as the licensee for the SDFI

FIELDS IN PRODUCTION 107 Proven in 1979, Snorre lies east of Statfjord in about 300-350 metres of water. its southern area has been developed with a tension leg platform and a subsea production system. This part of the field contained about 150 mill scm of Snorrc's original recoverable oil reserves. Aplan for development and operation of the northern part of the field (Snorre B) was approved in June 1998. This project involves a semi-submersible drilling and production platform, which came on stream in June 2001. Oil and gas from Snorre are piped to Statijord for final processing, storage and export. In connection with its acquisition of the former Saga Petroleum, Norsk Hydro agreed with Statoil that the operatorship for the Snorre Unit, production licence 089 and Visund would be transferred to the latter on 1 July 2003 (later changed to 1January 2003).

108 FIELDS IN PRODUCTION 0111 000 bfd I Gar bn rcmfyear

Statfjord Blocks and Blocks 33/9 and 33/12 - production licence 037. Awarded 1973. production licence Norway's share of the field is 85.47 per cent, Britain's is 14.53 per cent.

- ~~ ~~~~___~ - Progress Government approval: 1976 Production start-up: November 1979

Operator Statoil ASA

__~ ~~____~~ ___ Licensees Statoil ASA 44.34% (rounded off to two Mobil Development Norway A/S 12.82% decimal places) Norske Conoco A/S 10.33% Esso Expl R. Prod Norway AS 8.55% A/S Norske Shell 8.55% Conoco (lJIS) Ltd 4.84% Chevron IJK Ltd 4.84% BP Exploration Operating Co Ltd 4.84% Enterprise Oil Norge AS 0.89%

Recoverable reserves Originally present: Remaining at 31.12.01: (Norwegian share) 561.4 mill scm oil 43.4 mill scm oil 58.4 bn scm gas 13.5 bn scm gas 14.4 mill tonnes NGL 4.2 mill tonnes NGL

Production Estimated production in 2002: (Norwegian share) Oil: 146 000 b/d Gas: 1.71 bn scm NGL 0.42 mill tonnes

Investment The Norwegian share of total investment is likely to be NOK 118.9 bn (2002 value). NOK 103.1 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply bases Coast Center Base, Sotra and Flor0

FIELDS IN PRODUCTION 109 Proven in 1974, Statfjord lies in about 145 metres of water and extends into the UK North Sea. It has been developed with three fully-integrated platforms supported by gravity base structures featuring concrete storage cells. These installations have a combined processing capacity of 850 000 barrels per day. Each platform is tied to a buoy for loading stabilised oil into tankers. The platforms came on stream in November 1979, November 1982 and June 1985 respectively. Gas sales began in October 1985. Norway's share has been sold to a consortium of European buyers and is piped to Emden in Germany via the Statpipe/Norpipe system. The UK share of gas output has been sold to British Gas, and is landed in the UK via the Far North Liquids and Associated Gas System (Flags). Oil transport is organised by K/S Statfjord Transport, in which Statoil has a 50 per cent interest. A unitisation agreement has been signed between the UK and Norwegian licensees. The operatorship for production licence 037 and the unitised field was transferred from Mobil to Statoil on 1 January 1987. Oil and gas from Snorre, Sygna, Statfjord East and Statfjord North are processed on and exported from the Statfiord installations.

110 FIELDS IN PRODUCTION 0111 000 bid Gar bn rcrniyear 90, 06

60 Io4

Statfjord North

Block and Block 33/9 - production licence 037. Awarded 1973. production licence

Progress Government approval: December 1990 Production start-up: January 1995

Operator Statoil ASA

Licensees Petoro AS 30.00% (rounded off to two Statoil ASA 21.88% decimal places) Mobil Development Norway A/S 15.00% Norske Conoco A/S 12.08% Esso Expl& Prod Norway AS 10.00% A/S Norske Shell 10.00% Enterprise Oil Norge AS 1.04%

Recoverable reserves Originally present: Kemaining at 31.12.01: 40 mill scm oil 16.9 mill scm oil 2.8 bn scm gas 1.6 bn scm gas 0.8 mill tonnes NGL 0.5 mill tonues NGL

Production Estimated production in 2002: Oil: 34 000 b/d Gas: 0.13 bn scm NGL 0.053 mill tonnes

Investment Total investment is likely to be NOK 8.6 bn (2002 value) NOK 6.5 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply bases Coast Center Base, Sotra

1 Petoro AS serves as the licensee for the SDFI.

Discovered in 1977, Statfjord North is about 17 km north of Statfjord. It has been developed with subsea installations in 250-290 metres of water, tied back to Statfjord C for processing and export.

FIELDS IN PRODUCTION 111 0111 Ow bld Gar bn scmlyear

Statfjord East

Blocks and Block 33/9 - production licence 037. Awarded 1973. production licences Block 34/7 - production licence 089. Awarded 1984.

Progress Government approval: December 1990 Production start-up: September 1994

Operator Statoil ASA ~_____~ Licensees Petoro AS1 30.00% (rounded off to two Statoil ASA 25.05% decimal places) Esso Expl & Prod Norway AS 10.25% Mobil Development Norway A/S 7.50% Norsk Hydro Produksjon a.s 6.64% Norske Conoco A/S 6.04% A/S Norske Shell 5.00% Idemitsu Petroleum Norge AS 4.80% TotalFinaElf Exploration Norge AS 2.80% RWE-DEA Norge AS 1.40% Enterprise Oil Norge AS 0.52% ~~______~ Recoverable reserves Originally present: Remaining at 31.12.01: 37.1 mill scm oil 12.6 mill scm oil 4.1 bn scm gas 2.2 bn scm gas 1.3 mill tonnes NGI, 0.7 mill tonnes NGL

Production Estimated production in 2002: Oil: 25 000 b/d Gas: 0.18 bn scm NGL 0.075 mill tonnes

Investment Total investment is likely to be NOK 7.3 bn (“002 value). NOK 5.3 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stavanger

Main supply bases Coast Center Base, Sotra

1 I’etoro AS serves as the licensee for the SUFI.

Statfjord East was discovered in 1976 and lies about seven km north-east of Statfjord. Some 50 per cent of its reserves are in block 33/9, with the rest in block 34/7. It has been developed with subsea installations in 150-190 metres of water, tied back to Statfjord C for processing and export.

112 FIELDS IN PRODUCTION 0111 000 bid

Blocks and Block 33/9 - production licence 037. Awarded 1973. production licences Block 34/7 - production licence 089. Awarded 1984.

- __ ~~~ __~__ ~~ ~___~____- - Progress Government approval: April 1999 Production start-up. August 2000

Operator Statoil ASA

_____~______~__ __ ~ __ ~- ~ ___ Licensees Petoro AS1 30.00% (rounded off to two Statoil ASA 24.73% decimal places) Esso Expl & Prod Norway AS 10.23% Mobil Development Norway A/S 8.25% Norske Conoco A/S 6.65% Norsk Hydro Produksjon a.s 5.98% A/S Norske Shell 5.50% Idemitsu Petroleum Norge AS 4.32% TotalFinaElf Exploration Norgc AS 2.52% RWEDEA Norge AS 1.26% Enterprise Oil Norge AS 0.57%

Recoverable reserves Originally present: Kemaining at 31.12.01: 12.7 mill scm oil 9.5 mill scm oil

~ Production Estimated production in 2002: Oil: 34 000 b/d Gas: 0.12 bn scm

Investment Total investment is likely to be NOK 2.6 bn (2002 value). NOK 1.7 bn (2002 value) had been invested at 31.12.01

Operating organisation Stavanger

Main supply base Flor0

~ 1 Petoro AS serves as the licensee for the SDFI.

Proven in 1996, this field straddles the boundary between production licences 037 (Statfjord) and 089 (Snorre). Sygna has been developed with a subsea production system tied back to Statfjord C. Water injection capacity to the Statfjord North area was upgraded in 1999 in order to supply Sygna with injection water.

FIELDS IN PRODUCTION 113 Togi (Troll-Oseberg gas injection)

Block and Togi is operated by the unitised Troll group. production licence Blocks and production licenccs are identical to Troll phase I.

Progress Government approval: June 1986 Production start-up: January 1991

Operator Norsk Hydro Produksjon a.s

Production Gas: 22-25 hn scm over 11-14 years.

Investment Total investment is likely to be NOK 3.9 bn (2002 value). NOK 3.9 bn (2002 value) had been invested at 31.12.01.

'Togi delivers injection gas to Oseberg, and comprises a five-well subsea module on Troll East which is remotely operated from Oseberg. Intended to improve oil recovery from Oseberg, the gas is transported over the 48 km to the Oseberg field centre through a 20-inch pipeline. Oseberg is expected to cease importing gas via Togi during 2002.

114 FIELDS IN PRODUCTION 0111000 bld I Gas bn scrnlyear 100105

I 1994 1996 1998 2000 2061

Tordis (incl Tordis East and Borg)

Block and Block 34/7 - production licence 089. Awarded 1984. production licence

~~~~~______~~~ ~ ~ .~ ~ ~~ Progress Government approval: May 1Y91 Production start-up: June 1994

~~ Operator Norsk Hydro Produksjon a.s

~~ .~ Licensees Petoro AS1 30.00% Statoil ASA 28.22% Norsk Hydro Produksjon a.s 13.28% Esso Expl Rr Prod Norway AS 10.50% Idemitsu Petroleum Norge AS 9.60% TotalFinaElf Exploration Norge AS 5.60% KWE-DEA Norge AS 2.80%

~- ____~~~~ ~- Recoverable reserves Originally present: Remaining at 31.12.01: 52.5 mill scm oil 20.9 mill scm oil 4.2 bn scm gas 1.7 bn scm gas 1.4 mill tonnes NGL 0.7 mill tonnes NGL

Production Estimated production in 2002: Oil: 75 000 b/d Gas: 0.36 bn scm NGL 0.126 mill tonnes

Investment Total investment is likely to be NOK 8.8 bn (2002 value). NOK 7.3 bn (2002 value) had been invested at 31.12.01

Operating organisation Stavanger

Main supply base Flore

Petoro AS serves as the licensee for the SDIX

FIELDS IN PRODUCTION 115 The Tordis area embraces Tordis East and Borg as well as Tordis itself. Lying between Snorre and Gullfaks, Tordis was discovered in 1987 and came on stream in July 1994. A subsea development in about 200 metres of water is tied back to Gullfaks C, where the wellstreatn is processed. In connection with Norsk Hydro's acquisition of the former Saga Petroleum, it was decided that Statoil would take over the Tordis operatorship on 1July 2003 (later changed to 1January 2003). 'I'ordis East, Borg and another structure (STrJJ) have been developed with subsea-completed wells tied back to the Tordis production facilities, and came on stream in December 1998, July 1999 and December 2001 respectively.

116 FIELDS IN PRODUCTION Gas bn rcmlyear m NGL mill tonneslyear 30106

20 04

10 02

1996 1997 199R 1999 2000 2001 2002

Troll phase I

~~ _____~_____~_____ Blocks and Block 31/2 - production licence 054. Awarded 1979. production licences Blocks 31/3,31/5 and 31/6 - production licence 085. Awarded 1983.

__~___~___~_~~~______~______~ ___ - Progress Government approval: December 1986 Production start-up. February 1996 ______~ ____ Operator A/S Norsk Shell was operator for the development phase. Statoil ASA is operator for the production phase. ______~_~______-__ - Licensees Petoro AS1 56 00% (rounded off to two Statoil ASA zo.no% decimal places) Norsk Hydro Produksjon a.s 9.78% A/S Norske Shell 8.10% TotalFinaElf Exploration Norge AS 3.69% Norske Conoco A/S 1.62%

~~__~~_~~______~ Recoverable reserves Originally present Remaining at 31.12 01: 1 321.7 bn scm gas 1 210.4 bn scm gas 24.8 mill tonnes NGL 24.8 mill tonnes NGL 1.6 mill scm condensate

Production Estimated production in 2002: Gas: 22.8 bn scm NGL 0.5 mill tonnes

Investment Total investment is likely to be NOK 50.8 bn (2002 value) NOK 43.1 bn (2002 value) had been invested at 31.12.01.

Transport Gas from Troll is transported from Kollsnes through Zeepipe to Zeebrugge and Statpipe/Norpipe to Emden. The Franpipe line to Dunkerque has also been used since 1998. Condensate is shipped from Mongstad.

Operating organisation Bergen

Main supply base Agotnes

1 Petoro AS sei-vvs as the Iicrnsee for the SDFI

FIELDS IN PRODUCTION 117 Discovered in 1979, Troll lies about 65 km off Kollsnes near Bergen and comprises two main structures: Troll East and Troll West. The first of these primarily occupies blocks 31/3 and 31/6, while most of Troll West is found in block 31/2. Roughly two-thirds of the field's recoverable gas reserves are thought to lie in Troll East. A staged developmcnt has been pursued, with phase I covering gas reserves in the eastern region and phase I1 focusing on the oil reserves in Troll West. Phase 111 will cover gas reserves in the latter area. The original phase I plan, approved in 1986, called for an integrated production, drilling and quarters platform in 330 metres of water, but this was amended in the spring of 1990 to a single wellhead platform and a land-based processing plant at Kollsncs near Bergen. The authorities approved these revised proposals in December 1990. The processing plant at Kollsnes could be expanded to handle production from a development of the gas reserves in Troll West. Condensate is piped to the Vestprosess facility at Mongstad. An agreement has been concluded between the Troll and Kvitebjern partnerships on landing rich gas from Kvitebjmrn at Kollsnes for further processing. Kvitebjorn is due to begin production in October 2004.

118 FIELDS IN PRODUCTION Troll phase 11

Blocks and Block 31/2 - production licence 054. Awarded 1979. production licences Blocks 31/3, 31/5 and 31/6 - production licence 085. Awarded 1983.

~~~~ ~-~ Progress Government approval: May 1992 Production start-up: September 1995

____ -~~ Operator Norsk Hydro Produksjon a.s

~~ ____~______~ Licensees Petoro AS1 56.00% (rounded off to two Statoil ASA 20.80% decimal places) Norsk Hydro Produksjon as 9.78%) A/S Norske Shell 8.10% TotalFinaElf Exploration Norge AS 3.69% Norske Conoco A/S 1.62%

Recoverable reserves Originally present: Remaining at 31.12.01: 215 9 mill scin oil 119.5 mill scni oil Gas reserves are included under Troll phase I.

Production Estimated production in 2002: Oil: 316 000 b/d.

Investment Total investment is likely to be NOK 58.9 bn (2002 value). NOK 51.4 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mongstad

Petoro AS serves as the licensee for the SDFI

FIELDS IN PRODUCTION 119 A thin oil layer underlies the whole Troll field, but is only sufficiently thick for commercial recovery in the Troll West region. The latter divides into oil and gas provinces. where the thickness of the oil- bearing zones is 22-27 and 11-14 metres respectively. Test production from the two provinces in 1990 and 1991 yielded positive results. Crude is being produced from the oil province with horizontally-drilled wells tied back to the Troll B floating production platform. Eighteen of 22 planned production wells are currently in operation, together with one gas injector. The crude is landed through Troll Oil Pipeline I to the terminal at Mongstacl near Bergen. Associated gas is exported via the A platform on Troll East. Oil production from the first Troll B well cluster in the gas province began during November 1995. At 31 December 2001, 29 of 33 planned wells tied back to Troll B were in operation in the gas province. The floating'rroll C production platform came on stream in late October 1999 to recover oil from the northern part of the gas province. At 31 December 2001, 30 of 55 production wells were in operation in addition to a water injector for the Troll Pilot project. Oil from Troll C is landed through Troll Oil Pipeline I1 to Mongstad, with associated gas exported via Troll A. Testing of the Troll Pilot, a subsea separation plant, began in the summer of 2000.

120 FIELDS IN PRODUCTION 011 1 000 b/d Gas bn icm'year 80 12

60 09

40 Ob

20 03

1990 1993 1996 1999 2002

Veslefrikk

~~ -~~ Blocks and Block 30/3 - production licence 052. Awarded 1979. production licences Block 30/6 - production licence 053. Awarded 1979.

~ ~ Progress Government approval: June 1987 Production start-up: December 1989

Operator Statoil ASA -~______.- Licensees Petoro AS 37.00% Statoil ASA 18.00% TotalFinaElf Exploration Norge AS 18.00% KWE-DEA Norge AS 11.25%) Paladin Resources Norge AS 9.00% Svenska Petroleum Exploration A/S 4.50% Norske RWE-DEA AS 2.25% ___ Recoverable reserves Originally present: Remaining at 31.12.01: 54.6 mill scni oil 14.3 mill scm oil 3.1 bn scm gas 1.1 bn scm gas 1.1 mill tonnes NGL

Production Estimated production in 2002: Oil: 28 000 b/d Gas: 0.02 bn scm

Investment Total investment is likely to be NOK 16.3 bn (2002 value). NOK 14.2 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply bases Coast Center Base, Sotra and Flore

1 Petoro AS serves as the licensee for the SDFI.

Proven in 1981, Veslefrikk has been developed with the fixed A wellhead platform and the B semi-submersible for processing and quarters in about 175 metres of water. The oil is piped to Oseberg A for onward transmission through the Oseberg Trdns~~ortSystem (On) to the terminal at Sture near Bergen, while the gas travels via Statpipe. Veslefrikk B was taken to land in the summer of 1999 to reinforce its steel hull and to make the modifi- cations required to receive Huldra condensate from the autumn of 2001. The normally unstaffed platform on the latter field is remotely operated from Veslefrikk B.

FIELDS IN PRODUCTION 121 >\ Oii: 1 000 bid

1997 1998 1999 2000 2001 2002

Vigdis

Block and Block 34/7 - production licence 089. Awarded 1984. production licence

Progress Government approval: December 1994 Production start-up: January 1997

Operator Norsk Hydro Produksjon as

Licensees Petoro AS1 30.00% Statoil ASA 28.22% Norsk Hydro Produksjon a.s 13.28% Esso Expl & Prod Norway AS 10.50% Idernitsu Petroleum Norge AS 9.60% 'htalFinaElf Exploration Norge AS 5.60% RWE-DEA Norge AS 2.80%

Recoverable reserves Originally present: Remaining at 31.12.01: 29.8 mill scin oil 10.5 mill scm oil 2.1 bn scm gas 2.1 bn scm gas

Production Estimated production in 2002: Oil: 45 000 b/d

Investment Total investment is likely to be NOK 11.1 bn (2002 value). NOK 6.8 bn (2002 value) had been invested at 31.12.01.

Petoro AS serves as the licensee for the SDFI

Located between Snorre and Gullfaks, Vigdis was discovered in 1986 and began production in January 1997. It has been developed with subsea installations in 280 metres of water. These are tied back to Snorre, where the petroleum is processed. Stabilised crude oil is transferred via a dedicated pipeline to Gullfaks A for storage and loading into tankers. In connection with Norsk Hydro's acquisition of the former Saga Petroleum, it was decided that Statoil would take over the Vigdis operatorship on 1 July 2003 (later changed to 1January 2003).

122 FIELDS IN PRODUCTION Visund

Block and Block 34/8 - production licence 120. Awarded 1985. production licence

Progress Government approval: March 1996 Production start-up: April 1999

Operator Norsk Hydro Produksjon a.s

Licensees Statoil ASA 32.9% Petoro AS1 30.0% Norsk Hydro Produksjon a.s 20.3% Norske Conoco A/S 9.1% TotalFinaElf Exploration Norge AS 7.7%

Recoverable reserves Originally present: Remaining at 31.12.01: 42.9 mill scni oil 37.5 mill scm oil 50.5 mill scm gas 50.5 mill scm gas 5.1 mill tonnes NGL 5.1 mill tonnes NGL

Production Estimated production in 2002: Oil: 43 000 b/d

Investment Total investment is likely to be NOK 17.2 bn (2002 value). NOK 13.3 bn (2002 value) had been invested at 31.12.01.

Operating organisation Bergen

Main supply base Mor0

Petoro AS serves as the licensee for the SDFI.

Proven in 1986, Visund lies east of Snorre. It has been developed with a steel-hulled floating platform for production, drilling and quarters, with oil piped to Gullfaks A for storage and export. Gas production from the fieId is scheduled to start in 2005. Plans for development and operation and installation and operation of Visund gas export are due to be submitted to the authorities during 2002. In connection with Norsk Hydro's acquisition of the former Saga Petroleum, it was decided that Statoil would take over the Visund operatorship on 1 July 2003 (later changed to 1January 2003).

FIELDS IN PRODUCTION 123 67' 67'

NORDLAND 111 NORDLANPV .

VBRING 1 BASIN I I

66' 66'

VBRING BASIN II

6 65' -

640f32-7 640612-

64"

63" 63"

6' 10' 12'

Norwegian Sea

The Norwegian Sea was opened for exploration in connection with the fifth offshore licensing round in 1979. The Ilraugen oil field was the first Norwegian Sea discovery to be developed, and came on stream in October 1993. Heidrun, Njord, Norne and Asgard have since started production, while plans for development and operation (PDOs) for Kristin and Mikkel were approved in 2001. About 25 per cent of Norway's oil production derived from the Norwegian Sea in 2001. This region also contains substantial gas resources.

124 FIELDS IN PRODUCTION t

Oil 1 000 bid B Gas bn icrniyeai I0.4

I 1999 2002

Draugen Block and Block 6407/9 - production licence 093. Awarded 1984. production licence

Progress Government approval: December 1988 Production start-up: October 1993

Operator A/S Norske Shell

Licensees Petoro AS1 47.88% A/S Norske Shell 26.20% BP Norge AS 18.36%1 Norsk Chevron AS 7.56%

Recoverable reserves Originally present: Remaining at 31.12.01: 137 mill scm oil 60.2 mill scm oil 7.4 bn scm gas 7.1 bn scm gas 2 mill tonnes NGI, 1.6 mill tonnes NGL

Production Estimated production in 2002: Oil: 197 000 b/d Gas: 0.37 bn scm NGL 0.376 mill tonnes

Investment Total investment is likely to be NOK 23.7 bn (2002 value). NOK 22.5 bn (2002 value) had been invested at 31.12.01.

~~ Operating organisation Kristiansnnd

Main supply base Kristiansund

1 Petoro AS serves as the licensee for the SDFI.

Draugen was discovered in 1984 in 251 metres of water, and has been developed with a concrete mono- tower gravity base structure supporting an integrated topside. The field is currently producing from six horizontal platform wells. Reserves consist mainly of oil. Associated gas is piped to Kirstcr via a tie-in with the Asgard Transport trunkline. Oil is loaded into shuttle tankers on the field via two flowlines which link the platform with a floating loading buoy. Garn West, a separate oil deposit in the Draugen field, was developed and brought on stream in 2001 with two subsea wells tied back via a flexible flowline to the Draugen platform. A similar structure, Rogn South, is due to be developed and brought on stream via Garn West during 2002.

FIELDS IN PRODUCTION 125 - --1 . Oil 1 000 bid m Gas bn icmiyear

1995 1996 1997 1998 1999 2000 2001 2002

Heidrun

Blocks and Block 6507/7 - production licence 095. Awarded 1984. production licences Block 6507/8 - production licence 124. Awarded 1986.

Progress Government approval: May 1991 Production start-up: October 1995

Operator Statoil ASA

Licensees Petoro AS' 58.161 (rounded off to two Norske Conoco A/S 24.29% decimal places) Statoil ASA 12.43% Fortum Petroleum AS 5.12%

Recoverable reserves Originally present: Remaining at 31.12.01: 178 mill scni oil 106.4 mill scm oil 28.2 bn scm gas 24.7 bn scm gas 1.2 mill tonnes NGL 1.1 mill tonnes NGI,

Production Estimated prodtiction in 2002: Oil: 167 000 b/d Gas: 1.35 bn scm NGL 0.1 mill tonnes

Investment Total investment is likely to be NOK 56.3 bn (2002 value). NOK 46 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stjmdal

Main supply base Kristiansund

1 Petoro AS serves as the licensee for the SDFI.

The Heidrun field was discovered in 1985 and lies in some 350 metres on the Halten Bank off mid-Norway. A revised development plan submitted in December 1989 was approved by the government, and embraces a concrete tension leg platform (TLP). Heidrun's northern flank is being developed with subsea installations in order to phase in resources in this part of the field. Associated gas from Heidrun is carried in the dedicated Haltenpipe line to Tjeldbergodden in mid- Norway for conversion to methanol. The separate Heidrun gas export pipeline ties into the Asgard Transport system to transport gas to K2rsta.

126 FIELDS IN PRODUCTION 0111 000 bld

Njord Blocks and Block 6407/7 - production licence 107. Awarded 1985. production licences Block 6407/10 - production licence 132 Awarded 1987

~~ ~~~~~ - Progress Government approval. June 1995 Production start-up. September 1997

~~ ~~ Operator Norsk Hydro I’roduksjon a 9

~ ~ ~~~~ ~~ Licensees Norsk Hydro Produksjon a 9 22.5% Gaz de France Norge AS 20.0% Mobil Development Norway A/S 20 0% Norske Conoco A/S 15.0% Paladin Resources Norge AS 15 0% Petoro AS1 7 5%

Recoverable reserves Originally present: Remaining at 31.12.01: 23.7 mill scm oil 11.3 mill scm oil

Production Estimated production in 2002: Oil: 36 000 b/d

Investment Total investment is likely to be NOK 11.1 bn (20W2 value). NOK 9.6 bn (2002 value) had been invested at 31.12.01.

Operating organisation Kristiansund

Main supply base Kristiansund

1 Petoro AS serves as the licensee for the SDFI

Njord was proven in 1986 and lies in 330 metres of water about 30 km west of Draugen. Coming on stream in September 1997, the field has been developed with a steel-hulled semi-submersible production, drilling and quarters platform - Njord A. Subsea wells are tied back to this facility, with oil stored in a dedicated vessel - Njord B - located 2.5 km from the production platform. The crude is transferred via a flowline, with power supplied by cable from the platform. Oil is loaded into shuttle tankers for transport to the market. Njord B is remotely operated from the A platform except during discharging operations and maintenance campaigns.

FIELDS IN PRODUCTION 127 011 1 000 bld S Gar bn scrnlyeai

1997 1998 1999 20W 2001 2002

Norne

Blocks and Block 6608/10 - production licence 128. Awarded 1986. production licences Block 6508/1 - production licence 128H. Awarded 1998.

Progress Government approval: March 1995 Production start-up: November 1997

Operator Statoil ASA

Licensees Petoro AS1 54.0% Statoil ASA 25.0% Norsk Hydro Produksjon as 8.1% Norsk Agip A/S 6.9% Enterprise Oil Norge AS 6.0%

Recoverable reserves Originally present: Remaining at 31.12.01: 84.8 mill scni oil 47.9 mill scm oil 13.5 bn scm gas 12.5 bn scm ga 1.3 mill tonnes NGL 1.2 mill tonnes NGL

Production Estimated production in 2002: Oil: 179 000 b/d Gas: 0.9 bn scm NGI,: 0.086 mill tonnes

Investment Total investment is likely to be NOK 16.2 bn (2002 value). NOK 13.4 bn (2002 value) had been invested at 31.12.01.

Operating organisation Harstad

Main supply base Sandnessjeen

1 Petoro AS serves as the licensee for the SDFI

Norne lies in 380 metres of water, about 80 km north of Heidrun and roughly 200 km from the north Norwegian coast. The field has been developed with a production and storage ship tied to subsea templates. Flexible risers carry wellstreams to the vessel, which weathervanes around a cylindrical turret moored to the seabed. This ship carries processing facilities on its deck and storage tanks for oil. Processed crude can be transferred over the stern to tankers. A pipeline tied into the Asgard Transport system has been laid for gas export.

128 FIELDS IN PRODUCTION 0111 000 bld H Gar bn rcmlyear 160 12

120 9

80 6

40 3

1999 2000 2001 2002

hgard

Blocks and Block 6407/2 - production licence 074. Awarded 19%. production licences Block 6407/3 - production licence 237. Awarded 1998. Block 6506/11- production licence 134. Awarded 1987. Block 6506/12 - production licence 094. Awarded 1984. Block 6507/11- production licence 062. Awarded 1981.

~ ~~ ~- Progress (;overnment approval: June 1996 Production start-up: 1999/2000

~~ -~ Operator Statoil ASA

Licensees Petoro AS 35.50% Statoil ASA 25.00% Norsk Hydro Produksjon a.s 9.60% Norsk Agip A/S 7.90% TotalFinaElf Exploration Norge AS 7.65% Mobil1)evclopmrnt Norway A/S 7.35% Fortum Petroleum AS 7.00%

Recoverable reserves Originally present: Remaining at 31.12.01: 71.4 mill scni oil 51.3 mill scm oil 190.7 bn scm gas 186.4 bn scm gas 27.6 mill tonnes NGL 27 mill tonnes NGI, 42 mill scm condensate 41.1 mill scm condensate

Production Estimated production in 2002: Oil: 146 000 b/d Gas: 8.9 bn scm NGI,: 1.12 mill tonnes Condensate: 3.97 mill scm

Investment Total investment is likely to be NOK 55.2 bn (2002 value). NOK 50.6 bn (2002 value) had been invested at 31.12.01.

Operating organisation Stjmdal

Main supply base Kristiansund

1 Petoro AS serves as the licensee for the SDFI.

FIELDS IN PRODUCTION 129 Asgard comprises the Midgard, Smerbukk and Sniarbukk South discoveries, made in 1981, 1984 and 1985 respectively. Water depths are in the 240-300 metre range. The field has been developed with the Asgard A production ship for oil and condensate, which came on stream in May 1999, and the Asgard B floating gas platform. The latter began production in October 2000. Rich gas is piped to Klrsta north of Stavanger for processing and fractionation of the liquid components, with the lean gas sent on to continental Europe through the Europipe I1 line.

130 FIELDS IN PRODUCTION Fields which have ceased production The following fields had ceased to produce at 31 December 2001 Aibuskjeil Blocks 1/6 and 2/4 Development approved 1975 Cessation plan/ The cessation plan was approved by the authorities on decommissioning 21 December 2001 and in Report no 47 (1999-2000) to the Storting. Production start-up 1979 Production ceased 1998 Total production Oil: 7.4 mill scm Gas: 15.5 bn scm NGI,: 1mill tonnes over field lifetime

Cod Block 7/11 Development approved 1973 Cessation plan/ The cessation plan was approved by the authorities on 21 December 2001 and in Report no 47 (1999-2000) to the Storting. decommissioning ~~ Production start-ur, 1977 Production ceased 1998 Total production Oil: 2.9 mill scm Gas: 7.3 bn scm NGL 0.5 mill tonnes over field lifetime

East Frigg Block 25/1 and 25/2 Development approved 1984 Cessation plan/ Storting proposition no 8 (1998-1999) and Report no 47 (19992000) decommissioning to the Storting. Production start-up 1988 Production ceased 1997 Total production Gas: 9.2 bn scm Condensate: 0.1 mill scm over field lifetime

Edda Block 2/7 Development approved 1975 Cessation plan/ The cessation plan was approved by the authorities on decommissioning 21 December 2001 and in Report no 47 (1999-2OOO) to the Storting. Production start-up 1979 Production ceased 1998 Total production Oil 4.8 mill scm Gas: 2 bn scm NGL: 0.2 mill tonnes over field lifetime

FtELDS IN PRODUCTION 131 Frov Blocks 25/2 and 25/5 Development approved 1992 Cessation plan/ The cessation plan was approved by the authorities on 29 May 2001 decommissioning and Report no 47 (1999-2000) to the Storting. Production start-up 1995 Production ceased 2001 Total production Oil: 5.6 mill scm Gas: 1.6 bn scm Condensate: 0.1 mill tonnes over field lifetime

Lille-Frigg Block 25/2 Development approved 1991 Cessation plan/ Storting proposition no 53 (1999-2000) and Report no 47 (1999-2000) decommissioning to the Storting. Production start-up 1994 Production ceased 1999 Total production Gas: 2.2 bn scm Condensate: 1.3 mill scm over field lifetime

Mime Block 7/11 Development approved 1992 Cessation plan/ Storting proposition no 15 (19961997) and Keport no 47 (1999-2000) decommissioning to the Storting. Production start-up 1990 Production ceased 1993 Total production Oil: 0.4 mill scm Gas: 0.1 bn scm over field lifetime

North-East Frigg Blocks 25/1 and 30/10 Development approved 1980 Cessation plan/ Storting proposition no 36 (199495) decommissioninq Production start-ur, 1983 Production ceased 1993 Total production Gas: 11.6 bn scm NGL: 0.04 mill tonnes over field lifetime

132 FIELDS IN PRODUCTION Odin Blocks 30/10 Development approved 1980 Cessation plan/ Storting proposition no 50 (19951996) and Report no 47 (1999-2000) decommissioning to the Storting. Production start-up 1984 Production ceased 1994 Total production Gas: 27.3 bn scm over field lifetime

Tommeliten Gamma Block 1/9

Development approved 1986-~ Cessation plan/ Storting proposition no 53 (1999-2000) and Report no 47 (1999-2000) decommissioning to the Storting. Production start-ur, 1988 Production ceased 1998 Total production Oil: 3.9 mill scm Gas: 9.7 bn scm NGL 0.6 mill tonnes over field lifetime

West Ekofisk Block 2/4 Development approved 1973 Cessation plan/ The cessation plan was approved by the authorities on 21 December decommissioning 2001 arid in Report no 47 (1999-2000) to the Storting. Production start-uD 1977 Production ceased 1998 Total production Oil: 12.2 mill scm Gas: 26 bn scm NGL 1.4 mill tonnes over field lifetime

Yme Block 9/1.9/2 and 9/55 Development approved 1995 Cessation plan/ The cessation plan was approved by the authorities on 4 May 2001 decommissionina Production start-up 1996 Production ceased 2001 Total production Oil: 8.1 mill scm over field lifetime

FIELDS IN PRODUCTION 133 Fields and projects 15 under development Fram West Block and Block 35/11 - production licence 090. Awarded 1984. production licence Progress Government approval: March 2001 Planned production start-up: October 2003 Operator Norsk Hydro Produksjon a.s Licensees Norsk Hydro Produksjon a.s 25% Mobil Development Norway AS 25% Statoil ASA 20% Gaz de France Norge AS 15% Idemitsu Petroleum Norge AS 15% Resources Oil: 16.1 mill scm Gas: 3.6 bn scm NGL 0.1 mill tonnes Investment Total investment is likely to be NOK 4.3 bn (2002 value)

Fram West lies in the northern North Sea, about 22 km north of Troll C. This development embraces a reservoir in the Fram/Gj@aarea and involves two subsea templates tied back to Troll C, where the wellstream will be processed and oil sent to Mongstad through Troll Oil Pipeline 11. Associated gas will initially be injected back into the reservoir, and later exported via Troll A to Kollsnes. In the production phase, Fram West operations will be integrated with Troll C, which is also operated by Norsk Hydro.

Grane Blocks and Block 25/11 - production licence 001. Awarded 1965. production licences Block 25/11 - production licence 169 B1. Awarded 2000. Block 25/11 - production licence 169 B2. Awarded 2000. Progress Chvernment approval: June 2000 Planned production start-up: 4th quarter 2003 Operator Norsk Hydro Produksjon a.s Licensees Norsk Hydro Produksjon a.s 38.0% Petoro AS 30.0% Esso Expl& Prod Norway AS 25.6% Norske Conoco A/S 6.4% Recoverable reserves Oik 120 mill scm Investment Total investment is likely to be NOK 14.4 bn (2002 value)

1 Petoro AS serves as the licensee for the SDFI.

Proven in 1991, Grane lies in 127 metres of water east of Balder in the North Sea. Plans call for production to start in the autumn of 2003 and reach a plateau oil output of just over 200 000 b/d in 2005-2009. Oil in the field is heavy and complicated to recover. Development is based on an integrated production, drilling and quarters platform, with oil due to be transported by the Grane Oil Pipeline to the Sture terminal for storage, metering and export. Natural gas will be used as the drive mechanism for oil production. Since the field contains very little associated gas, injection volumes must be acquired elsewhere and a pipeline will accordingly be laid from Grane to Heimdal.

FIELDS AND PROJECTS UNDER DEVELOPMENT 135 Kristin (Halten Bank West) Blocks and Block 6506/11- production licence 134B. Awarded 2000. production licences Block 6406/2 - production licence 199. Awarded 1993. Blocks 6406/1 and 6406/5 - production licence 257. Awarded 2000. Progress Government approval: December 2001 Planned oroduction start-ua: October 2005 Operator Statoil ASA Licensees Statoil ASA 46.6 % Petoro AS1 18.9 % Norsk Hydro Produksjon a.s 12.0 % Mobil Development Norway A/S 10.5 % Norsk Agip A/S 9.0 % Total FinaElf Exploration Norge AS 3.0 Yo Resources (Kristin) Gas: 34.9 bn scm NGL 8.5 mill tonnes Condensate: 34.6 mill scm Investment (Kristin) Total investment is likely to be NOK 16.3 bn (2002 value) Petoro AS serves as the licensee for the SDFI.

Halten Bank West embraces the production licences which contain Kristin and the Lavrans,-Erlend, Morvin and Ragnfrid discoveries. Found in 1997, Kristin lies about 20 km south-west of Asgard's Smorbukk deposit. The plan for development and operation was approved in December 2001. Development of this field is based on a subsea production facility tied back t: a senii-submersible production platform. Plans call for the rich gas to be piped through the Asgard Transport trunkline to Kirsts for separation of the NGLs, while condensate will be piped to Asgard C for storage and export by shuttle tanker.

Kvit e bi8 r n Block and Block 34/11 - production licence 193. Awarded 1993. Droduction licence Progress Government approval: June 2000 Planned production start-up: October 2004 ODerator Statoil ASA Licensees Statoil ASA 50% Petoro AS1 30% Norsk Hydro Produksjon a.s 15% TotalFinaElf Exploration Norne AS 5% Recoverable reserves Gas: 54.2 bn scm NGL 0.5 mill tonnes Condensate: 20.6 mill scm Investment Total investment in field and pipelines is likely to be NOK 9.1 bn (2002 value)

1 Petoro AS serves as the licensee for the SDFI.

Kvitebjorn was proven in 1994 and lies south-east of Gullfaks. It is being developed with a fixed production platform carrying drilling package, processing facilities and quarters module. The topside is being fabricated at ABB in Haugesund, the quarters module by Leirvik Sveis, the drilling package by Heerema Tsnsberg and the jacket by Aker Verdal. The platform is due to be assembled offshore in the spring of 2003. All production wells will be drilled from the platform. Four of 11 gas producers are due to be ready to begin production in October 2004. The facilities are dimensioned for a daily output of 20.7 mill scm of rich gas and 10 000 scm of condensate. Rich gas will be piped through a new line to Kollsnes for further processing and export. Stabilised condensate will be transported to the crude oil terminal at Mongstad in the new Kvitebjern Oil Pipeline and a tie-in to Troll Oil Pipeline 11.

136 FIELDS AND PROJECTS UNDER DEVELOPMENT Blocks and Block 6407/6 - production licence 092. Awarded 1984. production licences Block 6407/5 - production licence 121. Awarded 1986.

~~ Progress Government approval: September 2001 Planned production start-up: October 2003 Operator Statoil ASA

Licensees Statoil ASA 56.52% Mobil Development Norway A/S 33.48% Norsk Hydro Produksjon a.s 10.00% Resources Gas: 19.8 bn scm NGL 4.2 mill tonnes Condensate: 5.5 mill scm Investment Total investment is likely to be NOK 2.5 bn (2002 value)

Proven in 1987, Mikkel lies in 220 metres of water on Halten Bank East, about 40 kni south of Asgard's Midgard deposit and 40 km north of Draugen. The plan for development and operation was approved in September 2001. The field is being developed with two subsea templates housing a total of four production wells tied back via Midgard to Asgard B. Condensate will be separated on the platform, with the rich gas being piped through hgard Transport to KgrstB for separation of the NGLs. Mer being stabilised, condensate will be stored and shipped away together with Asgard's own production.

Sigyn Block and Block 16/7 - production licence 072. Awarded 1981. production licence

Progress Government approval: August 2001 Planned production start-up: 1st quarter 2003

Operator Esso Expl & Prod Norway AS Licensees Statoil ASA 50% Esso Expl & Prod Norway AS 40% Norsk Hydro Produksjon as 10% Resources Gas: 5.3 bn scm NGL 1.5 mill tonnes Condensate: 3 mill scm Investment Total investment is likely to be NOK 3.1 bn (2002 value)

Sigyn was proven in 1982 and lies 70 metres of water in the Sleipner area. It will be developed as a phased subsea solution tied back to Sleipner A. After processing on that platform, Sigyn gas will be exported via the Sleipner lean gas system. Its condensate is due to travel in the existing pipeline from Sleipner to Khrst~.

FIELDS AND PROJECTS UNDER DEVELOPMENT 137 Snshvit (incl Albatross and Askeladd)

Blocks and Blocks 7120/5 and 7121/5 - production licence 110. Awarded 1985. production licences Block 7120/6 - production licence 097. Awarded 1984. Block 7120/7 - production licence 077. Awarded 1982. Block 7120/8 - production licence 064. Awarded 1981. Block 7120/9 - production licence 078. Awarded 1982. Block 7121/4 - production licence 099. Awarded 1984. Block 7121/7 - production licence 100. Awarded 1984.

Progress Government approval: 7 March 2002. Planned production start-up: 2006

Operator Statoil ASA

Licensees Petoro AS1 30.00% Statoil ASA 22.29% TotalFinaElf Exploration Norge AS 18.40% Gaz de France Norge AS 12.00% Norsk Hydro Produksjon a.s 10.00% Amerada Hess Norge AS 3.26% RWE-DEA Norge AS 2.81% Svenska Petroleum Exploration AS 1.24%

Recoverable reserves Gas: 163.5 bn scm NGL 5.1 mill tonnes Condensate: 18.1 mill scm

Investment Total investment is likely to be NOK 40 bn (2001 value)

Petoro AS serves as the licensee for the SDFI.

Discovered in 1984, Snahvit lies about 140 km north-west of Hammerfest and comprises the Askeladd and Albatross finds as well as the main discovery. The operator's planned development solution is based on subsea installations tied back to Melkaya outside Hammerfest by a pipeline for gas and condensate. The gas will be processed on land and transported to market in liquefied natural gas (LNG) carriers. Gas production is due to start in 2006. Plans for development and operation as well as installation and operation of Snehvit were submitted to the authorities in September 2001, and approved by the Storting on 7 March 2002.

138 FIELDS AND PROJECTS UNDER DEVELOPMENT Tune Blocks and Block 30/5 - production licence 034. Awarded 1969. production licences Block 30/6 - production licence 053. Awarded 1979. Block 30/8 - production licence 190. Awarded 1993. Progress Government approval: December 1999 f’lannecl production start-up: 1 October 2002 Operator Norsk Hydro Produksjon as

Licensees Petoro AS1 40% Norsk Hydro Produksjon a.s 40% TotalFinaElf Exploration Norge AS 20% Recoverable reserves Oil: 6.1 mill scm Gas: 22.9 bn scm NGL 0.1 mill tonties Investment Total investment is likely to be NOK 4 bn (20W value) ___ ~- I Petoro AS serves as the licenser for the SIIFI.

Tune is a gas and condensate field proven in 1995, about 10 km west of the Oseberg field centre. The bulk of its reserves lie in production licence 190, but part of them extends into production licences 034 and 053. Licence interests in 034 and 190 are the same, and the Tune licensees have purchased production rights for the reserves extending into 053. Phase I of the development covers four production wells drilled from a subsea installation centrally placed on the field and tied back to Oseberg D through two 12-inch flowlines and an imibi- lical. A Tune receiving module has been built on Oseberg D. Tune condensate will be stabilised at the Oseberg field centre and piped to Sture through the Oseberg Transport System. Gas from the field is due to be injected in Oseberg, but the Tune licensees will receive sales gas in exchange from the Oseberg Unit at the inlet to the Oseberg Gas Transport system.

Vale

Block and Block 25/4 - production licence 036. Awarded 1971. production licence Progress Government approval: March 2001 Planned production start-up: spring 2002 Operator Norsk Hydro Produksjon a.s Licensees Marathon Petroleum Norge A/S 46.90% (rounded off to two Norsk Hydro Produksjon a.s 28.53% decimal places) TotalFinaElf Exploration Norge AS 24.24% AS Ugland Rederi 0.32% Resources Oil: 3 mill scm Gas: 2.3 bn scm Investment ’Total investment is likely to be NOK 1.2 bn (2002 value)

Proven in 1991, Vale lies 16 km north of Heimdal and has been developed with a single subsea well, a seabed template and a 16.5-km flowline. The latter is tied back to the Heimdal platform for processing the wellstream. Existing pipeline systems will be used to export the field’s output.

FIELDS AND PROJECTS UNDER DEVELOPMENT 139 Valhall flanks

Blocks and Block 2/8 - production licence 006B. Carve-out 2000. production licences Block 2/11 - production licence 033B. Carve-out 2001. Progress Government approval: November 2001. Planned production start-up: 1st quarter, 2003. Operator BP Norge AS Licensees BP Norge AS 28.09% (rounded off to two Amerada Hess Norge AS 28.09% decimal places) Enterprise Oil Norge AS 28.09% TotalFinaElf Exploration Norge AS 15.72% Recoverable reserves See chapter 14, Valhall The flanks project is expected to enhance the recovery factor on Valhall to 42 per cent, increasing production from the field by the order of 20 mill scm oe up to 2028. Investment Total investment is likely to be NOK 4.4 bn (2002 value).

Various problems, such as seabed subsidence, have made it difficult to drain the flanks of Valhall from existing installations. The licensees accordingly want to install two unstaffed platforms on the flanks so that drilling and drainage can be accomplished faster, more cheaply and more efficiently. The south flank is under development, with production scheduled to start in early 2003.

Va Ih a II water injection Blocks and Block 2/8 - production licence 006B. Carve-out 2000. production licences Block 2/11 - production licence 033B. Carve-out 2001.

Progress Government approval: September 2000. Planned production start-up: January 2003. Operator RP Norge AS

Licensees BP Norge AS 28.09% (rounded off to two Amerada Hess Norge AS 28.09% decimal places) Enterprise Oil Norge AS 28.09% TotalFinaElf Exploration Norge AS 15.72% Recoverable reserves See chapter 14, Valhall Water injection is expected to improve the oil recovery factor from 31 to 38 per cent. This would yield roughly 29 mill scm in additional oil.

Investment Total investment is likely to be NOK 5.2 bn (2002 value).

The water injection project on Valhall involves constructing a platform connected to the existing wellhead installation. Fourteen wells for water injection and an additional production well are planned in addition to the seven extra producers already due to be drilled before the licensees decided to invest in water injection.

140 FIELDS AND PROJECTS UNDER DEVELOPMENT FIELDS AND PROJECTS UNDER DEVELOPMENT 141 I 6 Future developments 2112-1 Freja

Block and Block 2/12 - production licence 113. Awarded 1985 production licence -~ Operator Amerada Hess Norge AS ______~______- ~~_____ Licensees Amerada Hess Norge AS 50% Statoil ASA 30% Dong Norge AS 20% Resources Oil: 2.4 mill scm Gas: 0.4 bn scm NGI,: 0.1 mill tonnes

Discovered in 1987, Freja lies east of Valhall in about 70 metres of water close to the boundary with the Danish continental shelf. The drvelopment concept under consideration involves a subsea installation tied back to Valhall for processing and transport.

317-4 Trym

Block and Block 3/7 - production licence 147. Awarded 1988. production licence Operator A/S Norsk Shell

~~ Licensees A/S Norske Shell 50% Statoil ASA 30% Dong Efterforskning og Produktion A/S 20% Resources Gas: 3.3 bn scm Condensate: 0.8 mill scrn

This small gas/condensate find proven in 1990 lies close to the boundary with the Danish continental shelf. Hans call for it to be developed with a subsea installation. <>asproduction would be piped eight km to Denmark's Harald platform.

1515-1 Dagny Blocks and Block 15/6 - production licence 029. Awarded 1969. production licences Block 15/5 - production licence 048. Awarded 1977. Operator Statoil ASA Licensees PL 029 PL 048 Statoil ASA 68.9% TotalFinaElf Exploration Norge AS 21.8% Norsk Hydro Produksjon a.s 9.3% Esso Expl & Prod Norway AS 100%

~~ Resources Gas: 3.6 bn scm NGL: 0.5 mill tonnes Condensate: 1 mill scm

Proven in 1978, Dagny lies north of Sleipner West. A possible development solution involves a subsea production system tied back to the A or T platforms on Sleipner East when capacity becomes available on one or other of these installations.

FUTURE DEVELOPMENTS 143 1515-2 Block and Block 15/5 - production licence 048. Awarded 1977. production licence Operator Statoil ASA Licensees Statoil ASA 68.9% TotalFinaElf Exploration Norge AS 21.8% Norsk Hydro Produksjon as 9.3% Resources Gas: 5.5 bn scm NGL 0.1 mill tonnes Condensate: 0.2 mill scm

Proven in 1978, 15/52 lies north of 15/51 Dagny. It will probably be developed with a subsea system in conjunction with Dagny.

15/9-195 Volve Block and Block i5/9 - production licence 046. Awarded 1976. production licence Operator Statoil ASA Licensees Statoil ASA 52.6% Esso Expl& Prod Norway AS 28.0% TotalFinaElf Exploration Norge AS 10.0% Norsk Hydro Produksjon a.s 9.4% ~___~~ Resources Oil: 7.5 mill scm Gas: 0.8 bn scm NGL 0.2 mill tonnes

Proven in 1993, Volve lies in the Sleipner area. Possible development solutions involve a production ship or jack-up platform.

15/12-I2 Rev Block and Block 15/12 - production licence 038. Awarded 1975. production licence Operator Norsk Hydro Produksjon a.sg

Licensees Norsk Hydro Produksjon a.s2 42.0% Petoro AS1 30.0% Statoil ASA 28.0% Resources Oil: 6.6 mill scm Gas: 2.7 bn scm

I’etoro AS serves as the licensee for the SDFI. 2 PGS has acquired Norsk Hydro’s interest in production licence 038, and could take over the operatorship (subject to government approval).

This oil and gas discovery south of Varg was proven in 2001. A possible development solution is a subsea installation tied back to the Varg production ship.

144 FUTURE DEVELOPMENTS 24/6-2 Kameleon

Blocks and Block 24/6 - production licences 088 and 203. Awarded 1984 and production licences 1996 respectively. Block 25/4 - Droduction licences 036 (awarded 1971) and 203. Operator Norsk Hydro Produksjon as Licensees PLO36 PLO88 PL 203 (rounded off to two Norsk Hydro Produksjon a.s 28.53% 35% decimal places) Norske Conoco A/S 20% Det Norske Oljeselskap AS 15% AS Ugland Rederi 0.32% TotalFinaElf Exploration Norge AS 24.24% 50% Marathon Petroleum AS 46.90% 50% 30% Resources Oil: 7.9 mill scm Gas: 3.9 bn scm Petoro AS serves as the licensee for the SIWI

Proven in 1998, Kameleon lies just to the west of Heimdal. It comprises a thin oil zone with a gas cap. A number of development solutions have been considered by the licensees, including the use of a production ship to recover the oil and inject the gas back into the reservoir.

2514-3 Gekko Block and Block 25/4 - production licence 203. Awarded 1996. production licence Operator Norsk Hydro Produksjon as Licensees Norsk Hydro Produksjon a.s 35.0% Marathon Petroleum Norge AS 30.0% Norske Conoco A/S 20.0%) Del Norske Oljeselskap AS 15.0% Resources Gas: 7.6 bn scm Condensate: 1.3 mill scm

This field was discovered as early as 1974 with well 25/4-3, but has onIy recently been identified as a gas find. Various production solutions are currently under consideration, including a subsea installation tied back to Heimdal.

25/5-3 Skirne Block and Block 25/5 - production licence 102. Awarded 1985. production licence Operator TotalFinaElf Exploration Norge AS Licensees TotalFinaElf Exploration Norge AS 40% Petoro AS1 30% Marathon Petroleum Norge AS 20% Norsk Hydro Produksjon a.s 10%

Resources Oil 0.9 mill scm Gas: 4.3 bn scm

1 Petoro AS serves as the licensee for the SDFI.

Plans call for Skirne, proven in 1990, to be developed together with Ryggve using a subsea installation tied back to Heimdal. The MPE received a plan for development and operation of both fields in March 2002.

FUTURE DEVELOPMENTS 145 25/54 Byggve Block and Block 25/5 - production licence 102. Awarded 1985. production licence

Operator TotalFinaElf Exploration Norge AS

Licensees TotalFinaElf Exploration Norge AS 40% Petoro AS1 30% Marathon Petroleum Norge AS 2ox Norsk Hydro Produksjon a.s 10%

Resources Oil: 0.7 mill scm Gas: 2.4 bn scm

Petoro AS serves as the licensee for the SDFI

Plans call for Byggve, proven in 1991, to be developed together with Skirne using a subsea installation tied back to Heimdal. The MPE received a plan for development and operation of both fields in March 2002.

Blocks and Block 25/5 - production licence 102. Awarded 1985. production licences Block 25/4 - production licence 203. Awarded 1996.

Operator TotalFinaElf Exploration Norge AS

Licensees PL102 PL203 TotalFinaElf Exploration Norge AS 40% Petoro AS1 30?6 Marathon Petroleum Norge AS 20% 30% Norsk Hydro Produksjon a.s 10% 35% Norske Conoco A/S 20% Det Norske Oljeselskap AS 15%

Resources Oil 4.3 mill scm

~ 1 Petoro AS servt's as the licensee for the SDFI.

This 1995 discovery lies about six kn1 east of Heimdal. It extends marginally into block 25/4. A develop ment based on a subsea installation tied back to other infrastructure is under consideration.

146 FUTURE DEVELOPMENTS 2511 1-16

Block and Block 25/11 - production licence 169. Awarded 1991. production licence - Operator Norsk Hydro Produksjon a.s ___ ~___ Licensees Norsk Hydro Produksjon a.s 45% Petoro AS1 30% Statoil ASA 15% Esso Expl& Prod Norway AS 10%

Resources Oil: 3.6 mill scm

1 Ijttoro AS serves as the licensee for the SDH.

Proven in 1992, this oil discovery lies south-west of Grane. Development is planned with a subsea installation tied back to Grane after production from the latter field goes off plateau.

3016-1 7 Alpha Cook

Block and Block 30/6 - production licence 053. Awarded 1979. production licence

Operator Norsk Hydro Produksjon a.s

Licensees Petoro AS1 35% Norsk Hydro Produksjon as 34% Statoil ASA 141 TotalFinaElf Exploration Norge AS 10% Mobil Development Norway A/S 7%

Resources Oil: 0.3 mill scm Gas: 1.7 bn scm

1 Petoro AS serves as the licensee for the SDFI.

Proven in 1986, Alpha Cook is a small oil and gas find in the Cook formation beneath the main reservoir in Oseberg. It could be produced with a long well drilled from Oseberg B.

FUTURE DEVELOPMENTS 147 30/6-18 Kappa

Blocks and Block 30/6 - production licence 053. Awarded 1979. production licences Block 30/9 - production licence 079. Awarded 1982.

Operator Norsk Hydro Produksjon as

Licensees Petoro AS1 37.67% (rounded off to two Norsk Hydro Produksjon a.s 34.00% decimal places) Statoil ASA 14.00% TotalFinaElf Exploration Norge AS 10.00% Mobil Development Norway A/S 4.33%

Resources Oil: 0.8 mill scm Gas: 2.7 bn scm Condensate: 0.2 mill scm

Petoro AS serves as the licensee for the SDFI.

Proven in 1986, Kappa is an oil and gas discovery in a Statfjord formation structure west of Oseberg. Two new oil and gas discoveries were made nearby in 2001 - 30/&26 (Gamma West) and 30/627, which is a northern extension of Kappa. A joint development of Kappa and the new discoveries is being considered on the basis of a subsea installation and wellstream transfer to Oseberg for processing.

30/9-19 Delta

Blocks and Block 30/8 - production licence 190. Awarded 1993. production licences Block 30/9 - production licence 079. Awarded 1982.

Operator Norsk Hydro Produksjon a.s

Licensees PL 190 PL 079 Petoro AS1 40% 42% Norsk Hydro Produksjon as 40% 34% Statoil ASA 14% TotalFinaElf Exploration Norge AS 20% 10%

Resources Oil 1.6 mill scm Gas: 4.9 bn scm

Petoro AS serves as the licensee for the SDFI.

Delta was proven in 1998 as a gas find with a thin oil zone in the Tarbert formation. This structure could be developed with a long production well from the Oseberg field centre, but a subsea installation tied back to Oseberg is also being considered. The bulk of the resources in this find lie in production licence 079, with a small extension into production licence 190.

148 FUTURE DEVELOPMENTS 3519-1 Gj0a

~~~~ ~~ Blocks and Blocks 35/9 and 36/7 - production licence 153. Awarded 1988. production licence

Operator Norsk Hydro Produksjon as

Licensees Petoro AS1 30% Norsk Hydro Produksjon a.s 30% Statoil ASA 20% A/S Norske Shell 12% RWE-DEA Norge AS 8%

Resources Oil: 6.5 mill scm Gas: 29.4 bn scni NGL 1.5 mill tonnes

Petoro AS serves as the licensee for Ihe SDFI

The Gjsa field was proven in 1989 west of Nor0 and about 42 km north of Fram. Various development options are currently under consideration, including a possible unitisation with other resources in the Fram/Gjcra area.

6305/5-1 Ormen Lange ~____ Blocks and Block 6305/7 - production licence 208. Awarded 1996. production licences Blocks 6305/4 and 5 - production licence 209. Awarded 1996. Block 6305/8 - production licence 250. Awarded 1999.

Operators Norsk Hydro Produksjon a.s (development phase) A/S Norske Shell (production phase) Licensees PL208 PL209 PL 250 Petoro AS1 30% 35% 45.00% Norsk Hydro Produksjon a.s 25% 14.78% A/S Norske Shell 25% 15% 16.00% BP Norge A/S 45% 9.44% Statoil ASA 15% 8.87% Esso Expl81 Prod Norway AS 10% 5.91%

Resources Gas: 400 bn scm Condensate: 23.7 mill scm

Petoro AS serves as the licensee for the SDFI.

Proven in 1997,the Ormen Lange gas discovery extends across production licences 208,209 and 250. The find lies about 140 km west of Kristiansund. Two principal development options are available: construction of a large floating production platform for full processing to sales gas and direct export southwards, or a subsea production facility - possibly with a small platform .- tied back to a treatment facility on land with export from there. A plan for development and operation is due to be submitted in the fourth quarter of 2003, with gas production starting in the autumn of 2007.

FUTURE DEVELOPMENTS 149 6406/2-1 Lavrans

Block and Block 6406/2 - production licence 199. Awarded 1993. production licence

Operator Statoil ASA

Licensees Statoil ASA 46% Petoro AS1 27% Mobil Development Norway A/S 15% Norsk Hydro Produksjon a.s 12%

Resources Gas: 13.4 bn scm NGL: 2.5 mill tonnes Condensate: 4.7 mill scm

Petoro AS serves as the licensee for the SUFI.

Proven in 1994-95, Lavrans lies about five to 10 kni south of Kristin in 270-290 metres of water. It is located in production licence 199, part of Halten Bank West. Development could be based on a subsea installation tied back to Kristin, with rich gas being piped through Asgard Transport to Kirste for separation of the NGLs while condensate is processed on the Kristin platform. A tie- back of this kind would be accompanied by an adjustment of licence interests in Halten Bank West to reflect it. No developnient timetable has been clarified.

6407/1-2 +6407/1-3 Tyrihans South and North

Blocks and Block 6407/1- production licence 073. Awarded 1982. production licences Block 6406/3 - production licence 091. Awarded 1984.

Operator Statoil ASA

~~~ ~~ ~ ___ Licensees PL 091 PL 073 (rounded off to two Statoil ASA 55.00% 54.67% decimal places) TotalFinaElf Exploration Norge AS 33.33% Norsk Hydro Produksjon a.s 33.00% 12.00% Mobil Development Norway A/S 12.00%

Resources Oil: 16.6 mill scm Gas: 26.1 hn scm NGL: 3.6 mill tonnes

This discovery comprises two structures - Tyrihans North and Tyrihans South - located about 40 kin south of fisgard in roughly 285 metres of water. The Tyrihans South gas find was proven in 1983. Tyrihans North, which also contains oil, followed in 1984. A direct subsea tie-back to existing infrastructure on fisgard is being considered. Plans call for rich gas to be piped through the Asgard Transport system to a land terminal (Kollsnes/Kirst~j)for separation of the NGIs. Development timing will depend on spare capacity in existing infrastructure as well as a sales solution for the gas. A small part of Tyrihans South extends into production licence 091, while Tyrihans North lies entirely within production licence 073.

150 FUTURE DEVELOPMENTS 650715-1 Skarv

Blocks and Blocks 6507/5 and 6 - production licence 212. Awarded 1996. production licences Block 6507/3 - production licence 159. Awarded 1989. Block 6507/2 - production licence 262 Awarded 2000. __~~_____~___~~____~___ ~- Operator BP Norge AS Licensees PL159 PL212 PL262 BP Norge AS 30% 30% Statoil ASA 50% 30% 30% Enterprise Oil Norge AS 40% 25% 25% Mobil Development Norway A/S 15% 151 Norsk Hydro Produksjon a.s 10%

~~~ -~ Resources Oil 16.5 mill scni Gas: 33.8 bn scm NGL: 4.3 mill tonnes Condensate: 4.1 mill scm

Proven in 1998, Skarv lies in roughly 400 metres of water about 200 km off the Norwegian coast. It is primarily located in production licence 212, but also extends into production licence 262 and to a small extent into production licence 159. The earliest date when a plan for development and operation could be submitted to the authorities is the fourth quarter of 2002. Both a stand-alone concept and a long-distance tie-back are under consideration.

6608/10-6 Svale

___~___~___~~ Block and Block 6608/10 - production licence 128. Awarded 1986. production licences

~ Operator Statoil ASA

Licensees Statoil ASA 40.45% (rounded off to two Petoro AS1 24.55% decimal places) Norsk Hydro Produksjon a.s 13.50% Norsk Agip A/S 11.50% Enterprise Oil Norge AS 10.00%

Resources Oil: 7 mill scm

Petoro AS serves as the licensee for the SDFI.

Located about 10 km north-east of Norne, the small Svale oil find was proven in 2000 and could be developed as a satellite of Norne in combination with other possible finds in the area. The probability of making finds in several nearby prospects has increased following the Svale discovery.

FUTURE DEVELOPMENTS 151 I7 II I Pipelines and land facilities r

The map shows existing and planned pipelines in the North and Norwegian Seas. This chapter provides a more detailed description of pipelines on the NCS. The transport capacities given are based on standard assumptions about pressure ratios, energy content of the gas, maintenance periods and operational flexibility.

PIPELINES AND LAND FACILITIES 153 Pipelines

Draugen Gas Export

Operator A/S Norske Shell2

Licensees Petoro AS 57.88% BP Norge AS 18.36% A/S Norske Shell 16.20% Norsk Chevron AS 7.56%

Investment Total investment is put at roughly NOK 0.39 bn (2002 value)

Operating life The technical operating life is about 50 years

Capacity About 2 bn scm/year

Operating organisation Kristiansund

1 Petoro AS serves as the licensre for the SDFI. The oprratorship is due to be transferred to Gassco AS during 2002

A plan for installation and operation of Draugen Gas Export was received by the MPE in May 1999 and approved in April 2000. The 16-inch pipeline from Draugen to Asgard Transport is roughly 75 km long and provides opportunities for possible tie-ins of other fields in the area. The pipeline started up in November 2000.

Europipe I

Operator Gassco AS

Licensees As for Zeepipe Investment Total investment is likely to be about NOK 18.9 bn (2002 value), including land-based facilities in Germany

Operating life Europipe I is designed to operate for 50 years

Capacity Some 13 bn scm/year

Operating organisation Rygnes, KarmHy, and Kirst~,Tysvzr

This 40/42-inch pipeline starts at the Draupner E riser platform and runs for 660 km to the final delivery point at Emden in Germany. Owned by the Zeepipe group, Europipe I came into service in 1995.

154 PIPELINES AND LAND FACILITIES Europipe I1 ODerator Gassco AS Licensees Petoro AS1 45.01'): (rounded off to two Norsk Hydro Produksjon as 15.36% decimal places) Statoil ASA 15.00% Esso Expl & Prod Norway AS 7.68% TotalFinaElf Exploration Norge AS 5.92% Fortum Petroleum AS 3.66% Norske Conoco A/S 2.66% Norsk hipA/S 2.36% A/S Norske Shell 1.18% Mobil Development Norway A/S 1.18% Investment Total investment is put at about NOK 8.6 bn (2002 value) Operating life Technical operating life is 50 years. The licence expires in 2020 Capacity About 18 bn scm/year ______Operating organisation Bygnes, Karmoy, and Kirsto,Tysvaer Petoro AS serves as the licensee for the SDFI.

The plan for installation and operation of a 42-inch pipeline running for 650 km from Mrst0 north of Stavanger to Dornum in Germany was approved by the MPE in 1996. This line started up in 1999.

Franpipe Operator Gassco AS Licensees Petoro AS1 60.00% (rounded off to two Norsk Hydro Produksjon as 11.65% decimal places) Statoil ASA 9.71% TotalFinaElf Exploration Norge AS 5.05% Esso Expl & Prod Norway AS 3.88% Mobil Development Norway A/S 3.88% Norsk Agip A/S 1.94% A/S Norske Shell 1.29% Fartum Petroleum AS 1.29% Norske Conoco A/S 1.29% Investment Total investment is put at roughly NOK 8.8 bn (2002 value), including a receiving facility in Dunkerque Operating life Technical operating life is 50 years. The licence expires in 2020 Caoacitv About 15 bn scmhear Operating organisation Bygnes, Karmsy, and Grsts,Tysvter Petoro AS serves as the licensee for the SDFI.

This 42-inch gas pipeline runs for 8.10 !an from the Draupner E riser platform in the North Sea to a receiving terminal at Dunkerque in France. A separate partnefship has been established for the terminal, with the Franpipe group holding 65 per cent and Gaz de France 35 per cent. n-te system began operating in 1998. A 3Ginch direct link - the Ekofisk bypass - between the Statpipe and Norpipe gas pipelines was also established at an estimated cost of NOK 400 mill. The bypass started up in 1998.

PIPELINES AND LAND FACILITIES 155 Frostpipe Operator TotalFinaElf Exploration Norge AS

Licensees TotalFinaElf Exploration Norge AS 36.25% Petoro AS1 30.00% Statoil ASA 20.00% Norsk Hydro Produksjon a.s 13.75%

~ ~ Investment Total investment is likely to be about NOK 0.9 bn (2002 value)

Operating life The licence expires in 2016

Capacity About 100 000 b/d

1 Petoro AS serves as the licensee for the SDFI.

This pipeline carries oil and condensate from Frigg to Oseberg. A plan for installation and operation of Frostpipe was approved by the Storting in April 1992. Providing a transport solution for liquids from Fray, the system had the capacity to pipe volumes from new discoveries in the area. The 16-inch pipeline is about 82 km long. Liquids were piped on from Oseberg via the Oseberg Transport System (OTS). After Fr~yhad been shut down in March 2001. the line was filled with inhibited seawater and preserved for reuse by 2005. A cessation plan is due to prepared by the summer of 2003.

Grane Gas Pipeline

Operator Norsk Hydro Produksjon a.s

Licensees Petoro AS 43.6% Esso Expl & Prod Norway AS 25.6% Norsk Hydro Produksjon as 24.4% Norske Conoco A/S 6.4%

Investment Total investnient is put at about NOK 0.4 bn (2002 value)

Operating life The technical operating life is 30 years

Capacity About 3.6 bn scm/year

~ ~ 1 Petoro AS serves as the licensee for the SDFI.

The plan for installation and operation of the Grane Gas Pipeline was approved in June 2000. This 18- inch pipeline from Grane to the Heimdal riser platform will be 50 km long. The licensees are planning to import gas through the line to meet injection requirements on Grane.

156 PIPELINES AND LAND FACILITIES Grane Oil Pipeline

Operator Norsk Hydro Produksjon a.s

Licensees Petoro AS1 43.6% Esso Expl & Prod Norway AS 25.6% Norsk Hydro Produksjon a.s 24.4% Norske Conoco A/S 6.4%

Investment Total investment is put at about NOK 2.1 bn (2002 value)

Operating life The technical operating life is 30 years

Capacity 34 000 scni/day of oil

Petoro AS serves as the licensee for the SDFI

The plan for installation and operation of the Grane Oil Pipeline was approved in June 2000. This 29 inch pipeline from Grane to the Sture terminal will be 220 km long. It will start up simultaneously with the beginning of oil production from Grane, scheduled for the autumn of 2003.

Halten pipe

Operator Gassco AS

Licensees Petoro AS1 57.81% Statoil ASA 19.06% Norske Conoco A/S 18.13% Fortutn Petroleum AS 5.00% investment Total investment in pipeline and terminal is likely to be about NOK 2.5 bn (2002 value)

Operating life The licence expires on 31 December 2020

Capacity 2.2 bn scm/year of gas

Petoro AS serves as the licensee for the SDFI

This 16-inch gas pipeline runs for 250 km from Heidrun on the Halten Bank in the Norwegian Sea to Tjeldbergodden in mid-Norway, where Statoil ASA and Conoco have built a methanol plant. The latter uses Heidrun gas as feedstock. Annual gas supplies to the methanol plant total some 0.7 bn scm.

PIPELINES AND LAND FACILITIES 157 Heidrun Gas Export

Operator Statoil ASA2

Licensee Petoro AS' 64.16% (rounded off to two Norske Conoco A/S 18.29% decimal places) Statoil ASA 12.43% Fortum Petroleum AS 5.12%

Investment Total investment is put at about NOK 0.8 billion (2002 value)

Operating life The technical operating life is 50 years

Capacity About 4 bn scm/year

I'etoro AS serves as the licensee for the SDFI. The operatorship is due to he transferred to Gassco AS during 2002.

The authorities received a plan for installation and operation of Heidrun Gas Export in 1997, plus a supplement to this in March 1999. Approval of the proposals was given by the MPE in the spring of 2000. This 16-inch pipeline runs roughly 37 km from Heidrun to tie into the Asgard Transport system. It became operational in February 2001.

Kvitebj~rnOil Pipeline (KOR)

Operator Statoil ASA

Licensees Statoil ASA 50% Petoro AS1 30% Norsk Hydro Produksjon a.s 15% TotalFinaElf Exploration Norge AS 5%

Investment Total investment is likely to be NOK 0.67 bn (2002 value)

Operating life The technical operating life is 25 years

Capacity About 11 mill scm per year

Operating organisation Bygnes, Karm~y

Petoro AS serves as the licensee for the S1)FI.

Being built to transport condensate from Kvitebjarn to the Mongstad oil terminal, this 16-inch line will run for about 90 km to tie into an existing connection point on Troll Oil Pipeline 11. A plan for installation and operation was submitted in December 1999. The KOR is due to be ready for making condensate deliveries on 1 October 2004.

PIPELINES AND LAND FACILITIES Norne Gas Transport System (NGTS) __~ ~___ Operator Gassco AS Licensees Petoro AS 54.0% Statoil ASA 25.0% Norsk Hydro Produksjon as 8.1% Norsk Agip A/S 6.9% Enterprise Oil Norge AS 6.0%2 Investment Total investment is put at roughly NOK 1 bn (2002 value) Operating life The technical operating life is 50 years Capacity About 3.6 bn scm/year

1 I'tstoro AS serves as the licensee for the SUFI.

The authorities received a plan for installation and operation of the NGE in 1997, plus a supplement to this in April 1999. Approval of the proposals was given by the MPE in the spring of 2000. This l&inch pipeline runs roughly 130 km from Norne to tie into the Asgard Transport system. It becanie operational in February 2001.

Norpipe: Norpipe Oil AS -~ Operator Phillips Petroleum Company Norway Licensees Phillips Petroleum Company Norway 35.05% TotalFinaElf Exploration Norge AS 34.93% Stitoil ASA 20.00% Norsk Agip A/S 6.52% Norsk Hydro Produksjon a.s 3.50% Investment Total investment is likely to be about NOK 14.4 bn (2002 value) Operating life The pipeline has been designed for an operating life of at least 30 years. Extending its technical life is under constant review. Capacity Design capacity is about 53 mill scm/year (900 000 b/day), including the use of friction-inhibiting chemicals. The receiving facilities restrict capacity to about 810 000 b/d. Plans call for pumping capacity on Ekofisk and stabilisation capacity at the receiving terminal in Teesside to be upgraded.

~ Operating organisation Stavanger

Petoro AS will receive a five per cent interest in Norpipe Oil AS on 15 October 2005 through a similar reduction in the equity interest held by Statoil ASA in the company. Owned by Norpipe Oil AS, the 34-inch Norpipe oil pipeline is about 354 km long and again starts at the Ekofisk Centre, where three pumps have been placed. It crosses the UK continental shelf to come ashore at Teesside. A tie-in point for UK fields is located about 50 km downstream of Ekofisk. Two riser platforms, each with three pumps, were previously tied to the pipeline, but were bypassed in 1991 and 1994 respectively. Two British-registered companies, Norsea Pipeline Ltd and Norpipe Petroleum UK Ltd, own the oil export port and fractionation plant for extracting NGL in Teesside, and are operated by Phillips Petroleum Company UK. The oil pipeline carries crude from the Ekofisk, Eldfisk, Embla and Tor fields as well as from Valhall, Hod, Ula, Gyda and Tambar. It also transports production from Britain's Fulmar, J block, Gannet, Auk, Clyde, Janice and Orion fields. From the spring of 2002, oil kom Britain's Jade and Halley fields will also be piped through the line.

PIPELINES AND LAND FACILITIES 159 Norpipe: Norsea Gas A/S

Operator Phillips Petroleum Company Norway. Providing sufficient volumes are reserved under new transport contracts, Gassco AS can take over as operator.

Licensees Statoil ASA 25.00% Petoro AS' 25.00% TotalFinaElf Exploration Norge AS 20.86% Phillips Petroleum Company Norway 15.89% Norsk Agip A/S 8.62% Norsk Hydro Produksjon as 4.63%

Petoro will receive a 35 per cent interest in Norsea Gas A/S on 15 October 2005, and a further 45 per cent on 1 October 2007. The equity interest of Statoil ASA in Norsea Gas A/S will be 25 per cent, while the other interests in the company will be reduced proportio- nally.

Investment Total investment is likely to be about NOK 23.4 bn (2002 value)

Operating life The pipeline has been designed for an operating life of at least 30 years. Extending its technical life is under constant review.

~ Capacity Design capacity is about 15 bn scni/year (43 mill scm/day).

Operating organ isa t ion Stavanger

Petoro AS serves as the licensee fnr the WFI.

The Norpipe gas line belongs to Norpipe a.s, a wholly-owned subsidiary of Norsea Gas A/S. Running roughly 440 km to Emden in Germany, this 36-inch line starts at the Ekofisk Centre, where two compressors are installed. Two riser platforms, each with three compressors, are posi- tioned on the German continental shelf to pump the gas southwards. The compressors on one of these installations have now been shut down. Also owned by Norsea Gas A/S, the Emden terminal cleans and dries the gas prior to onward distribution. Operation of the gas line began in September 1977, and Statpipe was tied to it in 1986. Statpipe was tied directly to Norpipe downstream from Ekofisk with the aid of a bypass line as part of the redevelopment of Ekofisk in 1998.

160 PIPELINES AND LAND FACILITIES Oseberg Gas Transport (OGT)

Operator Gassco AS

Licensees As for the Oseberg field.

Investment Total investment is likely to be about NOK 1.6 bn (2002 value)

Operating life The pipeline is designed to operate for 50 years

Capacity 34 mill scm/day

Operating organisation Bergen

A plan for installation and operation of a gas pipeline from Oseberg, which ties into Statpipe at the Heinidal platform, was submitted by the field licensees in 1996. The authorities approved these proposals on 11 May 1999 and operation began in 2000. While this 3Ginch line is primarily intended for gas from Oseberg, it will have spare capacity to transport supplies from other sources. It runs for about 109 km.

Oseberg Transport System (OTS) Operator Norsk Hydro Produksjon a.s

Licensees As for the Oseberg field

Investment Total investment is likely to be about NOK 7.9 bn (2002 value)

Capacity 121 000 scm/day (technical), 990 000 scm (storage)

~~~ ______-~ Operating life The pipeline is designed to operate for 40 years. This may be extended.

Operating organisation Bergen

Oseberg oil is piped for 115 km through a 28-inch line from the field's A platform to the terminal at Sture near Bergen. The Oseberg group has established a separate partnership to operate the line. This partnership has concluded agreements with the licensees for Veslefrikk, Brage, Oseberg South, Oseberg East, Tune and Huldra to transport oil from these fields via Oseberg A and the OTS to the Sture terminal. Oil and NGI, from Frey were piped through Frostpipe from the TCP2 platform on Frigg to Oseberg A. After Fray was shut down in March 2001, Frostpipe was filled with inhibited seawater and preserved for reuse by 2005. The OTS partnership has concluded an agreement with the Grane shippers to receive, store and export oil from this field, starting in 2003.

PIPELINES AND LAND FACILITIES 161 Sleipner East condensate

Operator Statoil ASA

Statoil ASA 49.6% Esso Expl & Prod Norway AS 30.4% Norsk Hydro Produksjon as 10.0% TotalFinaElf Exploration Norge AS 10.0%

Investment Total investment is likely to be about NOK 1.4 bn (2002 value)

Capacity 200 000 b/d

Operating organisation Bygnes, Karmey

The decision to land condensate from Sleipner East at Kirsto north of Stavanger rather than at Teesside in the UK meant that the field's licensees had to lay a 20-inch pipeline to the Norwegian coast and organise the required expansion of the Kgrste complex. The Storting approved the construction of this line in December 1989. {Jnprocessed condensate from Sleipner East began to flow through the 245-km pipeline in 1993. At Kgrste, it is fractionated into NGL and stabilised condensate for the market. This line also began carrying condensate from Sleipner West, Loke and Gungne in 1997.

Statpipe

Operator Gassco AS

Licensees Petoro AS1 33.25% Statoil ASA 25.00% TotalFinaElf Exploration Norge AS 12.00% Norsk Hydro Produksjon as 10.00% Mobil Development Norway A/S 7.00% Esso Expl & Prod Norway AS 5.00% A/S Norske Shell 5.00% Norske Conoco A/S 2.75%

Investment Total investment is likely to be about NOK 39.8 bn (2002 value) excl Kirst0

Operating life Designed to operate for 40 years

Capacities Rich gas pipeline Statfjord-WstQ: 2530 mill scm/day (about nine bn/year). Wst0 terminal: roughly 25 mill scm/day (about eight bn/year) . Dry gas pipeline Draupner SEkofisk 53 mill scm/day (about 17 bn scm/year). Capacities vary to a large extent in accor dance with rich gas composition as well as the pressure in Statpipe and downstream of the line.

Operating organisation Bygnes, Karmey, and Kirste, Tysvaer Petoro AS serves as the licensee for the SDFI.

162 PIPELINES AND LAND FACILITIES This 880-km pipeline system includes a riser platform and a receiving facility at Kirsto north of Stavangcr. Statpipe is tied to the Statijord, Statfjord North and East, Gullfaks, Borg, Snorrc, Brage, 'hrdis, Veslefrikk and Heinidal fields. Kich gas from fields in the northern part of Norway's North Sea sector - Statfjord, Gullfaks and thr Oseberg area - is piped through a 30-inch line to Karst# for separation and fractionation of the NGL into commercial products, which are exported by ship. 'The residual dry gas continues either in a 28-inch pipeline to tlie Draupner S riser platform and on to Ernden via the Ekofisk bypass and Norpipe, or through Europipe I1 to Dornurn near Emden. Heimdal, Jotun and Balder are connt&d to Statpipe via a 3&inch lint, to Draupner S. Work on the project began in 1981. A 25-year licences was awarded from the ?tart of operation in October 1985 to 1 January 2011.

Troll Oil Pipeline I

__ ~ Operator Statoil ASA

Licensees Petoro AS1 55.77%1 (rounded off to two Statoil ASA 20 X5% decimal places) Norsk Hydro I'roduksjon a.s 9.73% A/S Norske Shell 8.29% 'I'otalFinaElf Exploration Norge AS 3.70% Norske Conoco A/S 1.66% ~- ~~___ _- Investment Total investment is likely to be about NOK 1 bn (2002 value)

~~ Operating life Troll Oil Pipcline I is designed to operate for 35 years

~ Capacity 42 500 scm/day of oil with tlie use of friction inhibitors

Operating organisation Kar-stn,Tysvzr

1 Petoro A5 serves as the licensee for tlie SUIT

This 85-kni facility transports oil from the Troll €3 platform to the terminal at Mongstad near Bergen. With its plan for installation and operation approved in December 1993, the 16-inch line was ready in September 1995 and is licensed to 2023. The Troll licensees have established a separate partnership to handle operation of the line.

PIPELINES AND LAND FACILITIES 163 Troll Oil Pipeline II Operator Statoil ASA Licensees Petoro AS' 55.77% (rounded off to two Statoil ASA 20.85% decimal places) Norsk Hydro Produksjon a.s 9.73% A/S Norske Shell 8.29% TotalFinaElf Exploration Norge AS 3.70% Norske Conoco A/S 1.66% Investment About NOK 0.9 bn (2002 value) Operating life Troll Oil Pipeline I1 is designed for a lifetime of 35 years Capacity Current capacity is 40 000 scm/day of oil. The hydraulic capacity of the line is 47 500 scm/d (without the use of friction inhibitors) Operating organisation K5rst0, Tysvarr

1 Prtoro AS scrvcs as the licensee for the SDIT

This 20-inch pipeline has been built to carry oil over the 80 km fromTroll C to the terminal at Mongstad near Bergen.The plan for installation and operation received government approval in March 1998, and Troll Oil Pipeline I1 was ready to begin operation when Troll C started production on 1November 1999. This line is licensed to 2023. Oil from kam West will be piped through this line when the field comes on stream, probably in October 2003.

Vesterled (formerly Frigg Transport)

Operator Gassco AS

Licensees Petoro AS1 60.00% Norsk Hydro Produksjon a.s 13.86% Statoil ASA 12.28% TotalFinaElf Exploration Norge AS 11.48% Mobil Development Norway A/S 2.38% Investment Total investment in the Norwegian Frigg pipeline and the Norwegian share of MCPOl is about NOK 27.8 bn (2002 value). Total investment in Vesterled is NOK 968 mill (2002 value).

Operating life The licence expires in 2020

Capacity 35 mill scm/day. At present limited to 18 mill scm/day because of Frigg deliveries (British pipeline: 33 mill scm/day) .

Operating organisation Bygnes and Kirsts

1 Petoro AS serves as the licensee for the SDFI.

164 PIPELINES AND LAND FACILITIES The Frigg Norwegian Pipeline (FNP) gas transport system from Frigg to St Fergus in Scotland comprises a 32-inch pipeline and a receiving terminal on land, but not the field processing and compression facilities on Frigg. The FNP runs for about 350 km, and currently carries gas from Frigg and Britain's Galley field. While the 32-inch UKpipeline from Frigg to St Fergus was completed in the summer of 1976, the FNP was ready the following year and came into service in August 1978. A plan for installation and operation (PIO) for Vesterled was received by the MPE in December 1999 from the licensees in Oseberg, who currently form the Vesterled partnership. The plan embraces installation of a new pipeline from Heimdal with a tie-in to the FNP about 50 km downstream from Frigg, as well as changes to the FNP operatorship and future operation of this system. With a total length of roughly 54 km, the new 32-inch line has a capacity corresponding to the FNP - in other words, about 11 bn cu.m/year. Vesterled began operating on 1 October 2001.

Operator Gassco AS

Licensees Petoro AS' 55.00% (rounded off to two Statoil ASA 15.00% decimal places) Norsk Hydro Produksjon a.s 11.00% A/S Norske Shell 7.00% Esso Expl Rr Prod Norway AS 6.00% TotalFinaElf Exploration Norge AS 4.60% Norske Conoco A/S 1.40%

Investment Total investment is likely to be about NOK 21.5 bn (2002 value)

Operating life Zeepipe is designed for a technical operating life of 50 years Capacity Some 13 bn scm/year for the Sleipner-Zeebrugge line

Operating organisation Bygnes, Karm~y,and K%ste, Tysvzr

1 Petoro AS serves as the licensee for the SDFI.

A staged development was adopted for Zeepipe. Phase I comprises a 40-inch pipeline running for 814 km from Sleipner East to Zeebrugge in Belgium and a 30-inch line running 30 km from Sleipner East to the Draupner S riser platform in the Statpipe system. It came into service in 1993. Phase I1 consists of two pipelines from the Troll Gas treatment plant at Kollsnes near Bergen. The 40-inch Phase IIA line runs for 303 km to Sleipner East and began operating in 1996. Phase IIB, which is 40 inches in diameter and runs for 304 km to the Draupner E riser platform, came into service in the following year. The gas receiving terminal in Zeebrugge belongs to a separate partnership, with the Zeepipe group holding 49 per cent and Distrigaz 51 per cent. This facility is built and operated as an integral part of Zeepipe.

PIPELINES AND LAND FACILITIES 165 hgard Transport

Operator Gassco AS -~-~~~ Licensees Pctoro AS1 46.95% Statoil ASA 13.55% Norsk Hydro I’roduksjon a.s 11.60% Norsk Agip A/S 7.90% TotalFinaElf Exploration Norge AS 7.65% Mobil 1)cvelopment Norway A/S 7.358 Fortuni Petroleum AS 5.00‘%,

~ ~ _~ __ Investment Total Investment is likely to be about NOK 9.4 bn (LOEL value)

Operating life Technical operating life is 50 years. The licence expires on 31 December 2020

~ ~~ Capacity About 20 5 bn scni/year __ Pctoro AS serves ah the licensee foi tht. SDFI

Installation and operation of a 42-inch pipeline running from Asgard in the Norwegian Sea to K&rstn north of Stavanger rcccived approval froni the MPE in 1998. This line became operational in October 2000. In addition to Asgard gas, this 730-km system also carries gas froni other fields off mid-Norway.

166 PIPELINES AND LAND FACILITIES Land facilities

Bygnes traffic control centre

~~~ Interests Owned by Statpipe

~ ~~ ~ ~

The traffic control centre at Bygnes north of Stavangcr coordinates gas transport and deliveries through the pipeline network from producers on the NCS to buyers in continental Europe. It controls gas flows through some 5 500 km of pipelines which transport about 90 per cent of Norwegian gas flowing to European customers.

Kollsnes gas treatment plant

Interests Interests in the Kollsnes gas treatment plant arc the same as for the Troll field.

~~~~ ~~ ___-

The Kollsnes gas treatment plant near Bergen is part of the Troll Gas fac es, which also include Troll A and the pipelines linking this platform with the treatment plant. Constructiou work began at Kollsnes in 1991 and was conipleted by 1 Octoher 1996, the deadline for starting contractual gas deliveries to continental Europe. Wellstreams from Troll East are carried through two pipelines to the Kollsnes treatment plant for separation into dry gas and condensate. The gas is dried and compressed before being piped through Zeepipe to Zeebrugge, Statpipe/Norpipe to Emden and Franpipe to Dunkerque. Condensate is piped on to the Vestprosess facility at Mongstad. The gas treatment plant can handle up to 120 mill scm of gas and 3 500 scm of condensate per day. Full utilisation of this capacity rrquires the installation of compressors on Troll A. Current plans call for the compressors to begin operation in 2005 or 2006. It has been resolved to construct an NGL extraction facility at Kollsnes to treat rich gas from such fields as Kvitebjmn.

PIPELINES AND LAND FACILITIES 167 Karsts gas treatment and condensate complex

Interests The Karsts gas treatment and condensate facilities form part of Statpipe, and are owned by the same partnership

The KArsts complex north of Stavanger receives rich gas from Statfjord, Statfjord North and East, Gullfaks I and 11, Borg/Tordis East, Snorre, Brage, Tordis and Veslefrikk through the Statpipe rich gas leg. These facilities also receive rich gas from Asgard, Heidrun, Norne and Draugen through Asgard Transport, as well as unstabilised condensate from Sleipner East and West. Rich gas is separated at KArsta and fractionated to methane, ethane, propane, iso-butane, normal butane, naphtha and stabilised condensate. Dry gas - methane and some of the ethane - is piped either through Statpipe to the Draupner S riser platform and on to Emden in Germany, Zeebrugge in Belgium or Dunkerque in France, or through Europipe I1 from Kirsts to Dornum near Emden. The rest of the ethane as well as iso-butane and normal butane are stored in refrigerated tanks, while naphtha and condensate are held in tanks at ambient temperature. Propane is stored in large refrigerated rock caverns. These products are exported in liquid form by ship. The complex received 571 vessel calls in 2001 and shipped out 7.8 million tonnes of liquids. Treatment facilities at Kirsto comprise four fractionation/distillation trains for methane, ethane, propane, butanes and naphtha, plus a fractionation line for stabilising condensate. The gas treatment facilities have a capacity of 64 mill scm per day, while the condensate and ethane plants can process roughly 3.6 mill and 620 000 tonnes per year respectively. Plans are being drawn up to expand capacity at Karsts.

Karsts metering and technology laboratory

Ownership Statoil ASA 100%

The KArsts metering and technology laboratory (K-Lab) offers services relating to the calibration of all types of gas flow meters for pressures from 20-150 bar, testing and qualification of equipment, capacity testing of control valves, and research projects. Investment in this facility, which opened in 1988, totalled NOK 265 mill at 31 December 2001.

168 PIPELINES AND LAND FACILITIES Mongstad crude oil terminal

Ownership Statoil ASA 65% Petoro AS1 35%

1 Petoro AS serves as the licensee for the SDFI

The terminal at Mongstad embraces two jetties able to accept vessels up to 400 000 tonnes, as well as six caverns excavated from the bedrock 50 metres below ground. These caverns have a total storage capacity of 1.5 mill cum of oil. Just over 2 000 ship calls are handled annually. This facility was constructed to support the marketing of crude oil loaded offshore on Gullfaks, Draugen, Norne, Asgard, Hridrun and other fields. These consignments are loaded into shuttle tankers, which have a sailing range confined to north-west Europe. By storing and transhipping crude at Mongstad, however, Statoil can sell the oil to more distant destinations. Mongstad is also the receiving terminal for the oil pipelines from Troll €3 and C.

Sture crude oil terminal

~ Interests Interests in the Sture terminal are the same as for Oseberg, with the exception of the LPG export facilities. These are owned by Norsk Hydro Produksjon a.s (the refrigerated LPG store and transfer system to ships) and Vestprosess DA (the transfer system to the Vestprosess pipeline). -~

The crude oil terminal at Sture near Bergen receives production from Oseberg, Veslefrikk, Brage, Oseberg South, Oseberg East. Tune and Huldra. This oil is carried in a 115-kin pipeline from Oseberg A. From the autumn of 2003, the terminal will also receive Grane oil through the Grane Oil Pipeline. The terminal began operating in December 1988. It incorporates two jetties able to berth oil tankers up to 300 000 tonnes, five rock caverns stores for crude oil with a combined capacity of one million scm, a 60 000-cu.m rock cavern store for LPG and a 200 000-cum ballast water cavern. A separate unit for recovering volatile organic compounds given off from tankers has been installed. The MPE approved an upgrading of the facility in March 1998. A fractionation plant which came on line in December 1999 processes unstabilised crude from Oseberg into stabilised oil and an LPG mix. The latter can either be exported by ship or piped through the Vestprosess line to the Mongstad refinery.

PIPELINES AND LAND FACILITIES 169 Tjeldbergodden industrial complex

-~ ~~ ~- Ownership of the Statoil Metanol ANS: Tjeldbergodden plants Statoil ASA 81.7%, Norske Conoco A/S 18.3% __ -

Plans to utilise gas from Heidrun as feedstock for niethanol production at Tjeldbergodden in mid- Norway were approved by the Storting in 19Y2. The methanol plant began production on 5 June 1997. Gas deliverics through the Haltenpipe line total 700 mill sun per year, which yields 830 000 tonnes of methanol An air separation plant - Tjeldbergodden Luftgassfabrikk DA - has been built in association with the niethanol facility. This partncrship has also constructed a small gas fractionation and liquefaction plant with an annual capacity of 35 mill scm. Norfernm as, owned by Statoil ASA, produces bioproteins at Tjrldbcrgodden. With an annual design capacity of 10 000 tonnrs. this plant can consume up to 25 mill scm of niethane per year. That corresponds to three per cent of the gas received from Heidrun.

Vestprosess

~ ~~ ~~ ~.~~ ~~~ ~~- - Ownership Pctoro AS' 41% Statoil ASA 17% Norsk Hydro I'roduksjon a.s 17% Mobil L)cvelopinmt Norway A/S 10% A/S Norske Shell 8% TotalFinaElf Exploration Norge AS 5% Norske Conoco A/S 2%

.. ~ ~ ~ __ .___._____- Pctoro AS serves as the licenser for thr SDFI.

The Vestprosess DA partnership was established in October 1997 with the aim of building, operating and owning a system to transport NGLfrorn Kollsnes and Sture to Mongstad as well as a fractionisation plant for NGL at the Mongstad refinery. These facilities came on stream in December 1999 and will initially carry Troll condensate from Kollsnes and Oseberg NGL from Stwe to Mongstad for further processing. The first step involves separating naphtha from the LPG to serve as refinery feedstock, while the LPG is fractionated into propane and butane in the new Vestprosess plant. Propane and butane are stored in rock caverns before export. The Vestprosess plant utilises waste energy and utilities from the refinery.

170 PIPELINES AND LAND FACILITIES PIPELINES AND LAND FACILITIES 171 Licence interests on the 18 Norwegian continental shelf Relinquishment of full production licences in 2001 : Production licences 114,114Band 114C.

Transfers in 2001

Licence From: To:

006 Amerada Hess Norge AS TotalFinaElf Exploration Norge AS 28.33 006C BP Norge AS Det Norske Oljeselskap AS 10.00 006C Enterprise Oil Norge Ltd Gaz de France Norge AS 14.17 008 Norsk Hydro Produksjon a.s Amerada Hess Norge AS 50.00 025 TotalFinaElf Exploration Norge AS BP Norge AS 25.00 025 TotalFinaElf Exploration Norge AS Marathon Petroleum Norge AS 8.20 025 Total Norge AS Marathon Petroleum Norge AS 10.00 025 Norsk Hydro Produksjon a.s Marathon Petroleum Norge AS 10.00 040 Norsk Hydro Produksjon a.s Statoil ASA 3.60 040 Norsk Hydro Produksjon a.s TotalFinaElf Exploration Norge AS 3.20 044 Statoil ASA Phillips Petroleum Norsk A/S 41.88 048B Norsk Hydro Produksjon a.s Pelican AS 9.30 048B Statoil ASA Det Norske Oljeselskap AS 10.00 072B Norsk Hydro Produksjon a.s Esso Expl and Prod Norge AS 10.00 077 Statoil ASA Gaz de France Norge AS 12.00 088 Statoil ASA Marathon Petroleum Norge AS 18.60 102 Statoil ASA Marathon Petroleum Norge AS 20.00 103B Statoil ASA Det Norske Oljeselskap AS 20.00 113 Statoil ASA Dong Efterforskning og Prodnktion A/S 20.00 113 Dong Efterforskning og Produktion A/S Dong Norge AS 20.00 132 StatoilASA Gaz de France Norge AS 20.00 145 Statoil ASA 10.00 145 Norsk Hydro Produksjon a.s 10.00 145 Phillips Petroleum Norsk A/S 16.00 145 Norsk Agip AS 4.00 147 Dong Efterforskning og Produktion A/S Dong Norge AS 20.00 148 Statoil ASA Amerada Hess Norge AS 45.00 148 Statoil ASA Det Norske Oljeselskap AS 5.00 148 Total Norge AS Det Norske Oljeselskap AS 15.00 150 Statoil ASA Marathon Petroleum Norge AS 10.00 167 Norsk Hydro Produksjon a.s Statoil ASA 22.50 167 Norsk Hydro Produksjon a.s BP Norge AS 7.50 167 Phillips Petroleum Norsk A/S Statoil ASA 7.50 167 Phillips Petroleum Norsk A/S RP Norge AS 2.50 168 Statoil ASA Amerada Hess Norge AS 75.00 169B Statoil ASA Norske Conoco A/S 8.00 176 Norsk Hydro Produksjon as 10.00

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 173 Licence From: To: Share:

176 Norsk Chevron .4S 7 44

~- ~~ 176 i\/S Norske Shell 23 80 176 Statoil ASA 35.00

~~~~ ~~ ~-~~ ~ ~ ~ ~~~ ~. ~ 176 131’ Norge AS 18.36 ~ ____~~ -.~ ~ ~ ~ . ~__ 176 I’ctoro AS 57.88 187 Norsk Hydro Produk Marathon Petroleum Korway AS in.00

~~ ~~~ ~~ ~ ~.. ~ ~ ~~~ 189 Anierada Hess Korgt, AS Esso Expl and Prod Norway -4s 20.00 189 Statoil ASA Esso Expl and Prod Norway AS 25.on 197 Anierada Hess Norge AS Esso Expl and Prod Norway L4S 35.00 ~~~ ~~ ~~~~~~ .~ ~~~~ ~~~~ _____ 197 Esso Expl and Prod Norway AS Amerada Hcss Norge AS 35.00 __~ ~ 210 A/S Norske Shell RP Norge AS 15.00 221 hlohil Development Koi \+a> 4s 15 00 ___~ 221 Norsk Hydro Produksjon a s 5 00 ~ -___ 2’ 1 Statoil ASA 8 00 ~ ~~ ~ __ 221 TotalFinaMf Exploration Korgt .4S 2 00 222 IvIol~iII)e~..rlopincnt Norwav AS 15 00 - 222 Nor5k Hvdro Produksjon a 5 00 -~____ -__ 222 Statoil ASA x 00 -____ ~- ~ - I‘otalFinaF Jrgr AS 2 00 ____ ~ MohilI)cvelopiiirnt Noi any AS 15 00 ~______223 Nor5k Hydro Produk~jona s 3 00

~~ ______2‘23 Matoil ASA 8 no ~~ ___ ~ ~~ 22 i TotalFiri& If Exploration hoige AS 2 00

~~ 211 Esqo Expl and Prod Norwav AS Statoil AS4 35 00

~~ ~~ - 252 Nonk IIrdro I’ioduksjon a 5 KJ56-I)EA Norgc A5 25 00 ___ 252 Fso bxpl and Prod horwak A5 Nomk IIvdro Produksjon a 15 00

-___ ~~ ______- ___

Transfers of operatorships: Licence From: To: 006C KPNorgr AS Amerada Hess Norge AS ~ ~~~~~ ~ - ~ - ~~~~ -. 008 Norsk Hydro Produksjori 3,s Amerada Hess Norge AS ~~~ ._____~_____~______-~. -~~____ 040 Norsk IIpdro Produksjon a.s TntalFinaLlf Exploration Norge AS ~~ ___ ~~ 044 Statoil ASA Phillips Petrolruni Norsk A/S - ~______~ .~ ~ ._____~~____ 143 Statoil ASA An~cradaHess Korge AS ~~ _____ ~ ~~ ~~~~ ~ 150 Fina Production Licenres AS Total Nor@ AS ~~~ ____ ._____ ~~ ~ ~~ ~~ - 150 Total Norge AS TotalFinaElf Exploration Norge AS .____~ -. ~ ~ 168 Statoil ASA Anierada Hess Norge AS ~ ~ ~~ ~~~~____~ ~ ~ ~ ~~~ ~ ~ 189 Anierada Hess Norgc AS Esso Expl and Prod Norway AS ~ ~ ____.~--~.~~- ~~~ ~ .- ~~ ~.~ 210 A/S Norskc Slit4 KI’ Norge AS ~. ~~ .-

174 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Production licences at 1 January 20021

The interests shown for each production licence apply to thr licence as such, and not necessarily to fields which might lie within the licence. Interests will c1ifft.r for unitised fields or for those in which thc sliding scale has been c,xercised. See chapters 14-16 for information on interests in thr various ficlds. Production licences which cover all or part of a field are indicated by the use of bold text in the heading for that licence. When the production licence covers only part of a field, the production licence(s) embracing the rest of the field are shown in brackets next to the field de.;ignation in the heading [for example: from prodnction licence 034: Tune (part) (+ PI, 053 and 190)l.The operator is indicated with an *. Since interrsts arr sliown to no more than three decimal places, they may not add up to exactly 100 per cent in some production licrnccs.

1 ’Thc sale of about 6.5 per rent of tlie SDFI’s assets in March 2002 is reflecttd in the interests shown

1st licensing round

Field/PL Block 1.icensees (*ooerator) Share (YO) BalderIGrane (part) (+PL 169,169Bl and 169B2)/Ringhorne (part) (+PL O27,027C, 169) - ______~ ______~ __ ___ ~ __ ___ - 001 1965 25/11 * Esso Expl & Prod Norway AS 100.000

Awarded outside licensing rounds: __~- ~~ - ~ ~ ~ _. ~ ___ - ~. - 001B 1999 lfj/l ’ Esso Expl k Prod Norway AS 50.000 Entwprise Oil Norgc AS 50.000

Tor (part) (+PL 01 8) ~ - ~ ~ -~ ______~ __ ~__ ___ 0Ofi 1965 2/5 ‘YotalFinaElf Exploration Norge AS 43.333 Enterprise Oil Norgc AS 28.333 BI’ Norge AS 28.3:;3

Awarded outside licensing rounds: Valhall (part) (+PL 0336) ______~____~~ ~~___~ - 006K 2000 2/x * KP Norge AS 28.333 Anicrada Hcss Norgc AS 28.333 Enterprise Oil Norge Ltd 28.333 ‘TotalFinaElf Exploration Norge AS 15.000 ~_____ 00fK 2000 2/5 * Amerada Hess Norge AS 28.333 2/8 €31’ Norge AS 18.333 TotalFinaElf Exploration Norgc AS 15.000 Enterprise Oil Norge AS 14.167 Gaz de France Norge AS 14.166 Det Norske Oljeselskap AS 10.000

008 1965 2/6 * Atnerada Hess Norge AS 100.000

Ekofisk arealTor (part) (+PL 006)ITjalve ~ ~~~____~~~ -~~ ~ ~ ___ ~ ~ __ - 018 1965 1/5 TotalFinaElf Exploration Norge AS 39.896 214 * Phillips Petroleum Company Norway 35.112 2/7 Norsk Agip A/S 12.388 7/11 Norsk Hydro Produksjon a.s 6.654 I’ctoro AS 5.000 Statoil ASA 0.950

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 175 Field/PL Block Licensees (looerator) Share (%I

Awarded outside licensina rounds: Ol8B 1995 1/6 TotalFinaElf Exploration Norge AS 39.896 * Phillips Petroleutn Company Norway 35.112 Norsk Agip A/S 12.388 Norsk Hydro Produksjon a.s 6.654 Petoro AS 5.000 Statoil ASA 0.950

Ula (part) (+PL 019 B) 019 1965 7/12 * BP Norge AS 80.000 Svenska Pctroleum Exploration AS 15.000 Pelican AS 5.000

Awarded outside licensing rounds: Gyda/Gyda South/Tambar (part) (+PL 065)Nla (part) (+PL 019) O19R 1977 2/1 * BP Norge AS 56.000 7/12 Pelican AS 34.000 Norske AEDC A/S 5.000 Norskc Moeco A/S 5.000

Awarded outside licensing rounds: 019C199X 2/1 BP Norge AS 45.000 Pelican AS 35.000 Norsk Hydro Produksjon as 20.000 __~___~___~

2nd licensing round

Frigg

~ ~~ 024 1969 25/1 * TotalFinaElf Exploration Norgc AS 47.130 Norsk Hydro Produksjon AS 32.870 Statoil ASA 20.000

025 1969 15/3 * Statoil ASA 46.800 Marathon Petroleum Norge AS 28.200 BP Norge AS 25.000

Frey (part) (+PL 102) 026 1969 25/2 * TotalFinaElf Exploration Norge AS 62.130 Norsk Hydro Produksjon a.s 32.870 Statoil ASA 5.000

Ringhorne (part) (+PL 001,027 C and 169) 027 1969 25/8 * Esso Expl& Prod Norway AS 100.000

Awarded outside licensing rounds: Jotun (part) (+PL 103 B) 027R 1999 25/8 * Esso Expl & Prod Norway AS 50.000 Enterprise Oil Norge AS 50.000

176 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF FieldlPL Block Licensees (loperator) Share (Oh)

Awarded outside licensing rounds: Ringhorne (part) (+PL 001,027 and 169)

027C 2000 25/8 * Esso Expl Cyr Prod Norway AS 100 000

~ ~____ - 028 1969 25/10 * Esso Expl & Prod Norway AS 100 000

Awarded outside licensing rounds: ~~ ___ 028R 1999 25/10 * Esso Expl Cyr Prod Norway AS 50.000 Enterprise Oil Norge AS 50 000

______~~~ 028C 2000 25/10 Norsk Hydro Produksjon a.s 45.000 Petoro AS 30.000 Statoil ASA 15.000 * Esso Expl & Prod Norway AS 10.000

Sleipner West (part) (+PL 046)/Glitne (part) (+PL 048 B)/Dagny (part) (+PL 048) 029 1969 15/6 * Esso Expl Rr Prod Norway AS 100.000

Awarded outside licensing rounds: Glitne (part) (+PL 0486) 029B 2001 15/6 * Esso Expl & Prod Norway AS 100.000

Hod ~ .~__ 033 1969 2/11 * HP Norge AS 25.000 Amerada Hess Norge AS 25.000 TotalFinaElf Exploration Norge AS 25.000 Enterprise Oil Norge AS 25.000

Awarded outside licensing rounds: Valhall (part) (+PL 0066) -~ ____.______~ ~ 033B 2001 2/11 Amerada Hess Norge AS 25.000 * BP Norge AS 25.000 Enterprise Oil Norge AS 25.000 TotalFinaElf Exploration Norge AS 25.000

Tune (part) (+PL 053 and 190) 034 1969 30/5 Petoro AS 40.000 * Norsk Hydro Prodnksjon AS 40.000 TotalFinaElf Exploration Norge AS 20.000

035 1969 30/11 * Norsk Hydro Produksjon as 50.000 Enterprise Oil Norge AS 50.000

HeimdalNale 036 1971 25/4 Marathon Petroleum Norge AS 46.904 * Norsk Hydro Produksjon a.s 28.531 TotalFinaElf Exploration Norge AS 24.243 AS Ugland Hederi 0.322

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ("operator) Share (%)

Awarded outside licensing rounds: StatfjordlStatfjord East (part) (+PL OIB)/Statfjord North/Sygna (part) (+PL 089) ___ ~~~ ~_~__~______037 1973 33/9 Petoro AS 30.000 33/12 * Statoil AbA 21.875 Mohil Dcveloptncnt Norway A/b 15.0(10 Yorake Conoco A/S 12.083 A/b Uorskr Shell 10.000 Esso Exg! M Prod Norway AS 10.000 bntrrprise 011 Norgc Ab 1.042

Awarded outside licensing rounds: Gullfaks South (part) (+PL 050 and 050B) ~~ __~__ ~__ 037B 1998 33/12 * Statoil ASA 61.000 PetCJro As 3n.000 Korsk IIydro Pruduksjon a.s 9.000

Awarded outside licensing rounds: Murchison __ ___ ~~ ~~ ~ ~~~~ ~~~______037c 2(100 33/9 * Statoil ASA 51.875 Mohil 1)rvclopment Korway A/S 15.000 Korske Conoco A/S 12.0X3 A/S Korskc Shell 10.000 Esao Expl& Prod Korway AS 10.000 Enterpristx Oil Norge AS 1.042 - ~ __ __ - ~ ~ ~ __ -

3rd licensing round

Varg - ~ ~ __ __~__. .______~___ - 038 1975 15/12 * Norsk Hydro Produksjon a.s 42.000 Prtoro AS 30 .ooo Statoil ASA 28.000

Hild (part) (+PL 043) - ~ ~~ ______~___~~ 040 1975 29/9 * TotalFinaElf Exploration h'orge AS 46.400 30/7 Petoro AS 30.000 Statoil i\SA 23.600

Hild (part) (+PL 040) ~___~~__~~ ~~___~~____~.~ 043 1976 29/6 * TotalFitiaElf Exploration Korge AS 50.000 30/4 I'etoro AS 30.000 Statoil ASA 20.000

Awarded outside licensing rounds: ___~~ .~~ ~~ ~ ~ .~ 044 1976 1/9 * Phillips Petroleum Norsk A/S 41.880 Statoil ilSA 30.000 TotalFinaElf Exploration Norge AS 15.000 Norsk Agip A/S 13.120

178 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees (*operator) Share (Oh)

Awarded outside licensing rounds: Sleipner East/Sleipner West (part) (+PL 029)/Volve/Gungne/Loke

~ ~ ~.~~~~ 046 1976 15/8 * Statoil ASA 52.600 15/9 Esso Expl M Prod Norway AS 2x.noo TotalFinaElf Exploration Norge AS 10.000 Norslc Hydro Produksjon a.s 9.400

Awarded outside licensing rounds: Dagny (part) (+PL 029)

~ __ 048 1977 15/5 * Statoil ASA 68.900 TotalFinaElf Exploration Norge AS 21.800 Norslc Hydro Produksjon a.s 9.300

Awarded outside licensing rounds: Glitne (part) (+PL 029)

~~ 048R 2001 15/5 * Statoil ASA 58.900 TotalFinaElf Exploration Norge AS 21.800 Det Norske Oljeselskap AS 10.000 Pelican AS 9.300

Awarded outside licensing rounds:

Gullfaks (part) (+PL 050B)/Gullfaks South (part) (+PL 037B and 050B) - 0:,0 1978 34/10 * Statoil ASA 61.000 Petoro AS :10.000 Norsk Hydro Produksjon a.s L1.000

Awarded outside licensing rounds: Gullfaks (part) (+PL 050)/Gullfaks South (part) (+PL~____ 037B and 050) 050B 19% 34/10 * Statoil ASA 61.000 Petoro AS 30.000 Norslc Hydro Produkslon a z 9.000

Awarded outside licensing rounds: North Sea round 1999 050c 1999 30/1 * Statoil ASA 61.000 34/10 Petoro 30.000 Norsk Hydro Produksjon as 9.000

4th licensing round

Huldra (part) (+PL 052B) 051 1979 30/2 I'etoro AS 31.400 Norslte Conoco A/S 24.500 TotalFinaElf Exploration Norge AS 24.500 * Statoil ASA 19.600

Veslefrikk (part) (+PL 053) 052 1979 30/3 Petoro AS 37.000 * Statoil ASA 18.000 TotalFinaElf Exploratinri Norge 18.000 RRE-DEA Norgr AS 11250 Paladin Resources Korgc AS 9.000 Svenska Petroleum Exploration AS 4.500 Uorske KWE-DEA AS 2.250

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 179 Field/PL Block Licensees ("operator) Share (%)

Awarded outside licensing rounds: Huldra (part) (+PL 051) 052B 2001 301'3 Petoro AS 37.000 * Statoil ASA 18.000 TotalFinaElf Exploration Norge AS 18.000 RWE-DEA Norge AS 11.250 Paladin Resources Norge AS 9.000 Svenska Petroleum Exploration AS 4.500 Norske RWE-DEA AS 2.250

Oseberg (part) (+PL 079)/0seberg EastlTune (part) (+PL 034 and 190)/ Veslefrikk (part) (+PL 052) 053 1979 30/6 Petoro AS 35.000 Norsk Hydro Produksjon as 34.000 Statoil ASA 14.000 TotalFinaElf Exploration Norge AS 10.000 Mobil Development Norway A/S 7.000

Awarded outside licensina rounds: Braae (Dart) (+PL 055 and 185) 053B 1998 30/6 Norsk Hydro Produksjon a.s 40.600 Petoro AS 25.400 Paladin Resources Norge AS 20.000 Statoil ASA 14.000

Troll (part) (+PL 085) 054 1979 31/2 Petoro AS 40.800 A/S Norske Shell 25.900 * Statoil ASA 18.000 Norske Conoco A/S 5.191 Norsk Hydro Produksjon a.s 4.900 TotalFinaElf Exploration Norge AS 5.209

Brage (part) (+PL 0538 and 185) 055 1979 31/4 * Norsk Hydro Produksjon a.s 23.200 Paladin Resonrces Norge AS 20.000 Esso Expl & Prod Norway AS 17.600 Petoro AS 13.400 Forturn Petroleum AS 13.200 Statoil ASA 12.600

Awarded outside licensing rounds: North Sea round 1999 055B 1999 31/4 * Norsk Hydro Produksjon a.s 23.200 Paladin Resources Norge AS 20.000 Esso Expl & Prod Norway AS 17.600 Petoro AS 13.400 Fortum Petroleum AS 13.200 Statoil ASA 12.600

180 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block licensees (*operator) Share /%)

Snorre (part) (+PL 089) 057 1979 34/4 Petoro AS 30.000 RWE-DEA Norge AS 24.500 * Norsk Hydro Produksjon a.s 14.700 Statoil ASA 11.400 Idemitsu Petroleum Norge a.s 9.600 Amerada Hess Norge AS 4.900 Enterprise Oil Norge AS 4.900

5th licensing round

Asgard (part) (+PL 074,094,134and 237) 062 1981 6507/11 * Statoil ASA 31.050 TotalFinaElf Exploration Norge AS 24.500 Petoro AS 19.950 Norsk Hydro Produksjon as 14.700 Fortuin Petroleum AS 9.800

Snehvit (part) (+PL 077,078,097,099,100and 1 IO) 064 1981 7120/8 * Statoil ASA 39.520 Petoro AS 30.000 Caz de France Norge AS 15.480 Norsk Hydro Produksjon as 10.000 TotalFinaElf Exploration Norge AS 5.000

Tyrihans (part) (+PL 091) 073 1982 6407/1 * Statoil ASA 54.667 TotalFinaElf Exploration Norge AS 33.333 Norsk Hydro Produksjon as 12.000

Asgard (part) (+PL 062,094,134and 237) 074 1982 6407/2 * Statoil ASA 31.050 Petoro AS 19.950 Fortum Petroleum AS 14.700 Norsk Agip A/S 14.700 Norsk Hydro Produksjon a.s 9.800 Mobil Development Norway A/S 9.800

Snehvit (part) (+PL 064,078,097,099,100 and 110) 077 1982 7120/7 * Statoil ASA 38.000 Petoro AS 30.000 Gaz de France Norge AS 12.000 Norsk Hydro Produksjon a.s 10.000 TotalFinaElf Exploration Norge AS 10.000

Snehvit (part) (tPL 064,077,097,099,100and 110) 078 1982 7120/9 Petoro AS 30.000 TotalFinaElf Exploration Norge AS 25.000 * Statoil ASA 23.000 Gaz de France Norge AS 12.000 Norsk Hydro Produksjon a.s 10.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 181 FieldlPL Block Licensees (*operator) Share (Yo)

6th licensing round

Tambar (part) (+PL 019B) _ __ 065 1981 1/R * HI' Norge AS 55 000 Pelican .4S 45 000 _____ 066 1981 2/2 * Ainerada Hess Norge AS 7o.non Statoil ASA 30 000

Sigyn ~~ ~- ~ ~~~ - ~~ - ~~ - ~_ 072 1981 16/7 Statoil ASA 50.000 * Esso lkp1 & I'rod Norway AS 40.000 Nor& Hydro Produksjon a.s 10.000

Awarded outside licensing rounds ~ ~_ 072 B 2001 l6/7 * Esw Lxpl & Prod Norway A5 30 000 Statoil AM 50 000

Awarded outside licensing rounds: Oseberg (part) (+PL 053)/0seberg South (part)~~___ (+PL 104 and 1718) ______07Ti982 30/9 I'rtoro AS 42.000 * Norsk Hydro Prodtiksjon a.s 34.000 Statoil ASA 14.000 TotalFinaElf Exploration Norge AS in.000

Awarded outside licensing rounds:Troll (part) (+PL 054) __ .~ 085 1983 31/3 I'ctoro .4S 62.919 31/5 * Statoil ASA 22.081 31/6 * Norsk Hydro Produksjon a.s 12.000 'I'otalFinaElf Exploration Norgc AS 3.oon

Awarded outside licensing rounds: ~ ~_ ~ ~ 08511 1992 31/9 Petoro AS 62.919 32/4 * Statoil ASA 22.08 1 * Norsk Hydro Produksjoii a.s 12.000

.~ 'I'otalFinaElf Exploration Norge AS ~.. 3.000

8th licensing round

Peik ______- 088 1984 24/6 * TotalFinaElf Exploration Norge AS 50.000 Marathon Pctrolcum Norye AS 50 000

Snorre (part) (+PL 057)/Statfjord East (part) (+PL 037)/Borg/Vigdis/Tordis/ Tordis East/H-West and NorthlSygna (part) (+PL 037)

~ ~_ 0x9 1984 34/7 I't'toro AS 30.000 Statoil ASA 28.220 * Norsk Hydro Produksjon as 13.280 Esso Expl & Prod Norway AS io.5on Ideinitsu Petroleum Norge a.s 9.600 TotalFiiiaElf Exploration Norge AS 5.600 RIVE-[)EA Norge AS 2.800

182 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees (‘operator) Share (Oh)

Fram ~ ___ ~ ~______-_ ___ ~~ .~ 090 1984 35/11 * Norsk Hydro Produksjon a.s 25.000 Mohil Dcvelopmcnt Norway A/S 25.000 Statoil ASA 20.000 Gaz de France Norgc AS 15.000 Idemitsu I’ctroleum Norge a.s. 15.000

Tyrihans (part) (+PL 073) ______~ ~~ ~ ______091 1984 6406/3 * Statoil ASA 53.000 Mold Developnirnt Norway A/S 33.000 Norsk Hydro Prodnksjon a.s 12.000

Mikkel (part) (tPL 121) - ~ ~~ ~ ______- 092 1984 6407/6 * Statoil ASA 50.000 hlobil Ikvelopment Norway A/S 40.000 Norsk Hydro Produksjon a.s io.000

Draugen - ~ ~ ______. ______~ 093 1984 6407/9 Petoro AS * A/S Norskc Shell RP Norge AS Korsli Chevron AS

Wsgard (part) (+PL 062,074,134 and 237) ~ ___ __ ~ ~ __ ~ ~__.- 094 1981 6506/12 * Statoil ASA 29.050 Petoro AS 14.950 Mobil Development Norway A/S 14.700 Norsk Hydro I’roduksjon a.s 11.900 Fortum Petrolcum AS 9.800 Norsk Agip A/S 9.800 TotalFinaElf Exploration Norge AS 9.800

Heidrun (part) (+PL 124) ~~ ~ _____ 095 1984 6507/7 Prtoro AS 59.000 * Norske Conoco A/S 26.000 Statoil ASA 10.000 Fortum Prtrolwm AS 5.000

Sncahvit (part) (+PL 064,077,078,099 and 110) ~_____ 097 1984 7120/6 I’etoro AS 30.000 * Statoil ASA 26.750 Gaz de France Norgc AS 12.000 Anierada Hess Norge AS 11.250 RWE-I)EA Norge AS 10.000 Norsk Hydro Produksjon as 10.000

Sncahvit (part) (+PL 064,077,078,097,100 and 110) 099 198.1 7121/4 TotalFinaElf Exploration Norge AS 37.500 Petoro AS 30.000 Gaz tic France Norge AS 12.000 * Statoil ASA 10.500 Norsk Hydro Produksjon a.s 10.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 183 Field/PL Block Licensees (*ouerator) Share (%)

Snehvit (part) (+PL 064,077,078,097,099 and 110) 100 1984 7121/7 TotalFinaElf Exploration Norge AS 35.000 Petoro AS 30.000 Norsk Hydro Produksjon a.s 10.000 Svenska Petroleum Exploration AS 10.000 Gaz de France Norge AS 6.000 * Statoil ASA 5.000 RWE-DEA Norge AS 4.000

9th licensing round

Skirne/Byggve/Frey (part) (+PL 026) 102 1985 25/5 * TotalFinaElf Exploration Norge AS 40.000 Petoro AS 30.000 Marathon Petroleum Norge AS 20.000 Norsk Hydro Produksjon a.s 10.000

Awarded outside licensing rounds: 102B 1998 25/5 * TotalFinaElf Exploration Norge AS 50.000 Petoro AS 30.000 Statoil ASA 20.000

103 1985 25/7 * Anierada Hess Norge AS 100.000

Awarded outside licensing rounds: Jotun (part) (+PL 0278) 103B 1998 25/7 * Norske Conoco A/S 37.500 Det Norske Oljeselskap AS 32.500 Petoro AS 30.000

Oseberg South (part) (+PL 079 and 171B) 104 1985 30/9 * Norsk Hydro Produksjon a.s 34.000 Petoro AS 20.000 Statoil ASA 20.000 Norskc Conoco A/S 11.000 TotalFinaElf Exploration Norge AS 10.000 Mobil Development Norway A/S 5.000

Njord (part) (+PL 132) 107 1985 6407/7 * Norsk Hydro Produksjon a.s 22.500 Gaz de France Norge AS 20.000 Mobil Development Norway A/S 20.000 Paladin Resources Norge AS 15.000 Norske Conoco A/S 15.000 Petoro AS 7.500

Snehvit (part) (+PL 064,077,078,097,099 and 100) 110 1985 7120/5 Petoro AS 30.000 7121/5 TotalFinaElf Exploration Norge AS 25.000 * Statoil ASA 14.670 Gaz de France Norge AS 12.000 Norsk Hydro Produksjon a.s 10.000 Amerada Hess Noree AS 8.330

184 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ("oDerator) Share (YO)

10th licensing round - Part A

Freja 113 1985 2/12 * Amerada Hess Norge AS 50 000 Statoil ASA 30.000 Dong Norge AS 20.000

Visund 120 1985 34/7 Statoil ASA 30.065 34/8 * Norsk Hydro Produksjon a.s 29.000 Petoro AS 16.935 Norske Conoco A/S 13.000 TotalFinaElf Exploration Norge AS 11.000

10th licensing round - Part B

Mikkel (part) (+PL 092) _____ 121 1986 6407/5 * Statoil ASA 70.000 Mobil Development Norway A/S 20.000 Norsk Hydro Produksjon a.s 10.000

122 1986 6507/2 Statoil ASA 50.000 * Norsk Agip A/S 20.000 Amerada Hess Norge AS 20.000 Mobil Development Norway A/S 10.000

Heidrun (part) (+PL 095) 124 1986 6507/8 * Statoil ASA 35.000 Norske Conoco A/S 27.910 Petoro AS 27.090 Fortum Petroleum AS 10.000

127 1986 6607/12 Statoil ASA 50.000 * TotalFinaElf Exploration Norge AS 50.000

Norne (part) (+PL 128B)/Svale 128 1986 6608/10 * Statoil ASA 40.455 6608/11 Petoro AS 24.545 Norsk Hydro Produksjon a.s 13.500 Norsk Agip A/S 11.500 Enterprise Oil Norge AS 10.000

Awarded outside licensins rounds: Norne (part) (+PL 128) 128B 1998 6508/1 Petoro AS 54.000 * Statoil ASA 25.000 Norsk Hydro Prodnksjon a.s 8.100 Norsk Agip A/S 6.900 Enterprise Oil Norge I+d 6.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 185 Field/PL Block Licensees (*oDerator) Share (%)

1 Ith licensing round - Part A

Njord (part) (+PL 107) ~______~______- - 132 1987 6407/10 * Norsk Hydro I’roduksjon a.s 22.500 Ca/ de franrc Norgr AS 20.000 Mobil Ucvclopinent Norway AS 20.000 Palad111 Resources Norge AS 15.000 Norske Conoco A/S 15.000 Pctoro AS 7.500

Asgard (part) (+PL 062,074,094 and 237) 134 1987 6506/ll * Statoil ASA 39.450 Norsk Agip A/S :10.000 Petoro AS 13.350 TotalFinaElf Ikploration Norge AS 10.1)00 Korsk Hydro I’roduksjon a.s 7.000

Awarded outside licensing rounds: Kristin (part) (+PL 199)

~ lS4K 2000 6506/11 Statoil AS4 48.000 Norsk Agip A/S 30.000 Norsk Hydro I’roduksjon a.s 12.000 TotalFinaElf Exploration Norge AS 10.000 ~~ ~ ~___~~~~~.~ -______

12th licensing round - Part A

~~ ____ ~ 1.13 1988 1/2 * Norsk Hydro I’roduksjon a s :15.000 Phillips I’etroleuni Norsk A/S 35.000 Statoil ASA :?0.000

- ____ ~______~~-~____ -~ 1/5 Statoil ASA 50.000 l/6 * Anicrdda Hess Norge AS 25.000 Enterprise Oil Norgc AS 25.000

~~ ~~ - ~ ~ 2/7 * Phillips Petrolcum Norsk A/S 56.000 Statoil ASA 30.000 Norak Agip AiS 14.000

146 1988 2/ 1 Statoil ASA :i0.000 * Norak Hydro I’roduksjon a.s 20.000 TotalFinaElf Exploration Norgc AS 20.000 Phillips Petroleum Norsk A/S 20.000 Amerada Hcss Norge AS 10.000

Trym

~ 147 19118 3i7 * A/S Uorske Shcll 50.000 Statoil ASA 30.000 Dong Norge AS 20.000 ______~~~~____ 148 1988 7/4 * Amerada Hcss Norge AS 70.000 7/7 Ikt Norskr Oljeaelskap AS 30.000

186 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees (*operator) Share (Yo)

-~ ~~ ~__~~______~__~~ ~ __ ~~ __ __ 150 1988 24/9 Enterprise Oil h’orgc AS 40.000 Marathon Petroleum Norgc AS 40.000 * TotalFinaElf Iixploration Norge AS 10.000 Norsk Hydro Produksjon a.s 10.000

._~~~___~______~______~.-____.~___ - ___ 152 1988 33/12 * Statoil ASA 58.890 Petoro AS :10.000 Mohil Ucveloprnent Norway A/S 11.110

Gjaa ~______- ______~ __~___- 153 1988 35/9 Petoro AS 30 000 BB/7 * Vorsk Hydro Produksjon a s 30.000 Statoil ASA 20.000 .4/S Norske Shcll 12 000 RIVE-DEA Norge AS 8 000 ______~______~ __ ~~ __ ~ .~ ~ -

12th licensing round - Part B

__ __~____~ ~ ______- 156 1989 6406/11 * Nor\k Hydro Produkyon a 5 70 (I00 Statoil ASA ;0 000

___ ~______-- ~ __ ~ __ - 158 1989 6407/8 * A/> Norske ShC11 ’31 640 Statoil AM KJ 000 Yor\k C hcvron A\ 20 000 BP Norge AS 18 360

Skarv (part) (+PL 212) ____~ ______~ ~ __ ~ ~ 159 19XCJ 6507/3 * Statoil A\A 50 000 Enterprise Oil Norge AS 40 000 ___iXor.ik Hydro Produksjoii a b 10 000

13th licensing round

166 1991 15/6 Statoil ASA 70.000 * RWIS-I)EA Norge AS 30.000

167 1991 16/1 * Statoil ASA 80.000 BP Norge AS 20.000

~ 168 1991 25/10 *Anierada Hess Norge AS 100.000

Ringhorne (part) (+PL 001,027 and 027C) 169 1991 25/8 * Norsk Hydro Produksjon a.s 45.000 25/11 Petoro AS 30.000 Statoil ASA 15.000 Esso Expl & Prod Norway AS 10.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 187 FieldIPL Block Licensees Poperator) Share ('70)

Awarded outside licensing rounds: Grane (part) (+PL 001 and 16982) 169B1 2000 25/11 * Norsk Hydro Produksjon a s 47.500 Petoro AS 37 500 Norske Conoco A/S 8.000 Esso Expl & Prod Norway AS 7.000

Awarded outside licensina rounds: Grane (part) (+PL 001 and 169B1) 169B2 2000 25/11 * Norsk Hydro Produksjon a.s 47.500 Petoro AS 30.000 Esso Expl & E'rod Norway AS 10.000 Norske Conoco A/S 8.000 Statoil ASA 4.500

~____-____-____ ~ ______171 1991 30/12 Norsk Hydro Produksjon a s 40 000 Petoro AS 35 000 Statoil ASA 15 000 Enterprise 011 Norge A5 10 000

Awarded outside licensing rounds: Oseberg South (part) (+PL 079 and 104) 171R 2000 30/12 * Norsk Hydro Produksjon as 34.000 Prtoro AS 31.000 Statoil ASA 15.000 Mohil Development Norway A/S 10.000 TotalFinaElf Exploration Norge AS 10.000

172 1991 33/9 * Mobil Development Norway A/S 44.450 Petoro AS 30.000 Statoil ASA 25.550

174 1991 35/12 * Norsk Hydro Prodnksjon as 30.000 Norske Conoco A/S 20.000 Gaz de France Norge AS 17.500 Idernitsu Petroleum Norge as. 17.500 Statnil ASA 15.000

176 1991 6407/12 Petoro AS 47.880 * A/S Norske Shell 26.200 BP Norge AS 18.360 Norsk Chevron AS 7.560

Awarded outside licensing rounds: Brage (part) (+PL 0538 and 055) 185 1991 31/7 * Norsk Hydro Produksjon as 23.200 Paladin Resources Norge AS 20.000 Esso Expl & Prod Norway AS 17.600 Petoro AS 13.400 Fortum Petroleum AS 13.200 Statoil ASA 12.600

188 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees (*oDerator) Share (YO)

14th licensing round

187 1993 15/2 Statoil ASA 65.000 15/3 * BP Norge AS 25.000 Marathon Petroleum Norge AS 10.000

189 1993 25/8 * Esso Expl and Prod Norway AS 45.000 25/9 Petoro AS 45.000 Norsk Hydro Produksjon a.s 10.000

Tune (part) (+PL 034 and 053) 190 1993 30/8 Petoro AS 40.000 * Norsk Hydro Produksjon a.s 40.000 TotalFinaElf Exploration Norge AS 20.000

191 1993 31/2 * Norsk Hydro Produksjon a.s 30.000 Gaz de France Norge AS 22.500 Idemitsu Petroleum Norge AS 22.500 Statoil ASA 15.000 Mobil Development Norway A/S 10.000

Kvitebj~rn 193 1993 34/11 * Statoil ASA 50.000 Petoro AS 30.000 Norsk Hydro Produksjon a.s 15.000 TotalFinaElf Exploration Norge AS 5.000

195 1993 35/8 Petoro AS 35.000 * Norsk Hydro Produksjon as 30.000 BP Norge AS 20.000 Norske Conoco A/S 15.000

196 1993 35/6 Idemitsu Petroleum Norge AS 100.000 36/4

197 1993 6306/2 * Amerada Hess Norge AS 70.000 6306/5 Statoil ASA 30.000

LavranslKristin (part) (+PL 1346) 199 1993 6406/2 * Statoil ASA 46.000 Petoro AS 27.000 Mobil Development Norway A/S 15.000 Norsk Hydro Produksjon a.s 12.000

200 1993 6608/7 * Statoil ASA 65.000 6608/8 Phillips Petroleum Norsk A/S 20.000 BP Norge AS 15.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 189 FieldlPL Block Licensees (*operator) Share P/a)

.~ ~ __ _.__ 201 1993 7018/3 * Norsk Agip A/S 35.000 7019/1 Statoil ASA 25.000 Enterprise, Oil Norwegian A/S 25.000 Fortutn IWroleum AS 15.000

202 1993 7227/11 * Statoil AS4 55.000 7227/12 Anierada Hcss Korge A/S 25.000 7228/7 Norsk Hydro Produksjon a.s 20.000 7228/10 ~~ ~ -~~~~ ~ - .

15th licensing round

__~~ ~ ._ 203 1996 24/ti * Norsk Hydro Produksjon a.s 35.000 25/4 Marathon Pc%troleutnNorge AS 30.000 z5/7 Korske Conoco A/S 20.000 Det Norske Oljeselskap AS 15.000

~- ~ ~~ ~~ - 204 1996 24/9 Statoil ASA 35.000 24/11 Marathon Petroleum Norge AS 30.000 24/12 Amcrada Hess Norge AS 20.000 Enterprise Oil Norge AS 15.000

. ~~ . - ___ 206 19‘36 33/5 * hlobil Development Norway A/S 75.000 33/6 Korsk Hydro I’roduksjon a.s 25.000 34/4

Ormen Lange (part) (+PL 209 and 250) -~ 208 1996 6304/9 RP Norge AS 45.000 ti305/7 I’etoro AS 30.000 A/b Norske Shell 25.000

Ormen Lange (part) (+PL 208 and 250) ~ ~ .~ 209 1996 6305/1 Petoro AS 35.000 6305/2 * Norsk Hydro I’roduksjon a.s 25.000 li:105/4 Statoil ASA 15.000 (i305/5 A/S Norskc Shell 15.000 Esso Expl & Prod Norway AS 10.000

~~~ -~~~~ -~~ ~~ ~~~~ ~ 210 1996 64(14/3 Statoil ASA 50.000 6405/1 * BP Norge AS 35.000 6504/9 A/S Norskc Shell 15.000 6504/12 6505/7 6505/10

~ 211 1996 6506/6 * blohil Devt,loprnent Norway A/S 30.000 6507/4 Statoil ASA 30.000 Norsk Agip A/S 20.000 TotalFinaElf Exploration Norge AS 20.000

190 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (Oh)

Skarv (part) (+PL 159) .~ ~~~ ~ . ~ .~ 212 1996 6107/5 * KI' Norge AS 30.000 6507/6 Statoil ASA 30.000 Enterprise Oil Norge AS 25.000 Mobil Development Norway A/S 15.000

~~ ____~ ____ ~~ ~ ~ ~ 213 1996 F508/1 * Statoil ASA 60.000 Norsk Hydro Produksjon a.s 20.000 Phillips I'ctroleum Norsk A/S 20.000

~ ______~~~~ ~~ 215 1996 66nm Statoil ASA 45.000 6604/3 * Norsk Hydro Produksjon a.s :IO.000 6704/12 Norskc Conoco A/S 15.000 fi705/10 Mobil 1)rvclopnient Norway A/S 10.000

~ .~ ~ _____~~______216 1996 6610/1 * BP Norge AS ::0.000 :itatoil ASA n0.000 'TotalFinaElf Exploration Norge AS 25.000 Ehterprise Oil Norgc AS 15.000

_____.~ ~~_____.~ ~ 217 1996 6706/11 * Statoil ASA 65.000 li706/12 KI' Norge AS 20.000 Norske Conoco A/S 15.000

~______~~~~~_____~~ ~ 218 1996 6706/12 Statoil ASA 50.0i~O li707/10 * RI' Norge AS 25.000 Esso Expl8. Prod Norway AS 15.000 Norske Conoco A/S 10.000

- ~~ __~~ ~_____~ 219 1996 6710/li Norsk Agip A/S 40.000 * Norsk Hydro Produksjon a.s 25.000 'TotalFinaElf Exploration Norgc AS 15.000 Fortuni Petroleum AS 10.000 Enterprise Oil Norge AS 10.000

220 1996 6710/10 * Statoil ASA 70.000 -4tnerada Hess Norge AS 15.000 Fortuni Petroleum AS 15.000

Barents Sea project

221 1997 7116/2 Statoil ASA 53.000 7116/3 * Norsk Hydro Produksjon a.s 35.000 7216/10 TotalFiiiaElf Exploration Norge AS 12.000 7216/11 7216112 7217/10

222 1997 Statoil ASA 53.000 * Norsk Hydro I'roduksjon a.s 35.000 TotalFinaElf Exploration Norge AS 12.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 191 Field/PL Block Licensees (*operator) Share (0,)

223 1997 Statoil ASA 53.000 * Norsk Hydro Produksjon a.s 35.000 TotalFinaElf Exploration Norge AS 12.000

224 1997 7217/9 * TotalFinaElf Exploration Norge AS 30.000 7217/12 Phillips Petroleuni Company Norway 25.000 7218/7 Mobil Development Norway A/S 25.000 7218/8 Statoil ASA 20.000 7218/10 7218/11

225 1997 Statoil ASA 40.000 * Norsk Hydro Produksjon as 20.000 Norsk Agip A/S 15.000 Enterprise Oil Norge AS 15.000 Fortum Petroleum AS 10.000

226 1997 Statoil ASA 40.000 * Norsk Hydro Produksjon a.s 20.000 Norsk Agip A/S 15.000 Enterprise Oil Norge AS 15.000 Fortum Petroleurn AS 10.000

227 1997 Statoil ASA 40.000 * Norsk Hydro Produksjon as 20.000 Norsk Agip A/S 15.000 Enterprise Oil Norge AS 15.000 Fortum Petroleum AS 10.000

228 1997 7222/6 * Norsk Hydro Produksjon as 50.000 7222/8 Statoil ASA 50.000 7222/9 7222/11 7222/12 7223/4 7223/5 7223/6

229 1997 7122/7 * Norsk Agip A/S 25.000 7122/8 Phillips Petroleum Company Norway 25.000 7122/9 Statoil ASA 20.000 7122/10 Enterprise Oil Norge AS 15.000 7123/7 Fortum Petroleum AS 15.000

230 1997 Statoil ASA 35.000 Norsk Hydro Produksjon a.s 30.000 * Mobil Development Norway A/S 20.000 Amerada Hess Norge A/S 15.000

231 1997 Statoil ASA 35.000 Norsk Hydro Produksjon a.s 30.000 * Mobil Development Norway A/S 20.000 Amerada Hess Norge AS 15.000

192 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF FieldlPL Block Licensees ("operator) Share (Oh)

232 1997 Statoil ASA 35.000 Norsk Hydro Produksjon a.s 30 000 * Mobil Ikvelopnimt Norway A/S 20.000 Amrrada Hess Norge AS 15.000

233 1997 * Statoil ASA 50.000 Norsk Hydro Produksjon a.s 35.000 Norsk Agip A/S 15.000

234 1997 * Statoil ASA 50.000 Norsk Hydro Produksjon a.s 35.000 Norsk Agip A/S 15.000

235 1997 * Statoil ASA 50.000 Yorsk Hydro I'roduksjon a.s 35.000 Norsk Agip AS 15.000

236 1997 * Statoil ASA 50.000 Norsk Hydro Produksjon as 35.000 Norsk Agip A/S 15.000

Awarded outside licensing rounds: Asgard (part) (+PL 062,074,094 and 134) 237 1998 6407/3 Petoro AS 35.500 * Statoil ASA 25.000 Norsk Hydro I'roduksjon as 9.600 Vorsk Agip A/S 7.900 'TotalFinaElf Exploration Norge AS 7.650 Mobil Development Norway A/S 7.350 Fortuni I'etroleuni AS 7.000

North Sea round 1999

238 1999 3/6 * Norsk Agip A/S 40.000 Enterprise Oil Norge Ltd 35.000 Statoil ASA 25.000

239 1999 4/4 * Norsk Agip A/S 40.000 4/5 RWE-IIEA Norge AS 35.000 Statoil ASA 25.000

240 1999 7/12 * BP Norge AS 75.000 Statoil ASA 25.000

241 1999 15/8 * Esso Expl & Prod Norway AS 65.000 1519 Statoil ASA 35.000

242 1999 16/1 * Esso Expl & Prod Norway AS 50.000 Enterprise Oil Norge AS 50.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 193 Field/PL Block Licensees (“operator) Share (Oh)

2443 19911 16/4 * BP Norge AS 45.000 Norsk Hydro Produksjon a.s 30.000 Statoil ASA 25.000

244 1999 25/2 Prlican AS 45.000 25/4 * Norsk Hydro Produksjon a.s 30.000 25/5 Eiitcrprisc. Oil Norgr AS 25.(100

215 11199 25/3 * Statoil ASA 30.000 25/6 Petoro AS 25.000 Mobil 1)evelopinent Norway A/S 25.000 Norsk Hydro Produksjon a.s 20.000

246 1999 29/3 * h/S Norske Shell 7 5.000 Mobil Drvrlopment Norway A/S 2.i.000

247 1999 29/3 * Norsk Hydro Produksjon as 50.000 30/1 Mobil Devrlopmcnt Norway A/S 50.000

__~ __ ~~~ - 248 1999 35/8 Pvtoro AS 40.000 35/11 Statoil ASA 20.000 * Norsk Hydro I’roduksjon a.s 20.000 Mobil Developtnrnt Norway A4/S 20.000

~ ~~~~~~~ Marathon I’etroleuni Norge AS 46.904 * Norsk Hydro Produksjon a.s 28.853 TotalFinaElf Exploration Norgc AS 24.243

Awarded outside licensing rounds: Ormen Lange (part) (+PL 208 and 209)

~ ~~~ ~~ 250 1999 6305/8 Prtoro AS 45.000 * A/S Norske Shell 16.000 Norsk Hydro Produksjon a.s 14.780 BP Norgr AS 9.440 Statoil ASA 8.870 Esso Exol K. Prod Norwav AS 5.910

16th licensing round

251 2000 li302/6 Statoil ASA 30.000 6302/9 BP Norge AS 25.000 6303/7 A/S Norske Shell 25.000 6305/8 TotalFinaElf Exploration Norge AS 20.000

252 2000 (i305/8 * Norsk Hydro Produksjon as 50.000 6305/9 Norsk Chevron AS 25.000 KWE-I)EA Norge AS 25.000

194 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF FieldlPL Block Licensees I*oaerator) Share I%)

253 2000 6402/12 * Norsk Hydro Produksjon as 50.000 6403/10 KWE-DEA Norge AS 30.000 Petoro AS 20.000

254 2000 6404/7 * BP Norge AS 35.000 6404/8 Petoro AS 25.000 6404/10 Norske Conoco A/S 20.000 6404/11 'I'otalFinaElf Exploration Norge AS 20.000

255 2000 F406/5 Petoro AS 30.000 6406/6 * A/S Norske Shell 30.000 640W9 Statoil ASA 20.000 'TotalFinaElf Exploration Norge AS 20.000

256 2000 6406/1 * Norsk Agip A/S 30.000 6506/10 Enterprise Oil Norge AS 25.000 Fortum Petroleum AS 25.000 Petoro AS 20.000

257 2000 6406/1 * Statoil ASA 73.000 6406/5 Mobil Development Norway A/S 15.000 Norsk Hydro Produksjon as 12.000 __~__ 258 2000 6502/2 * TotalFinaElf Exploration Norge AS 25.000 6502/3 Petoro AS 20.000 6502/6 Norsk Hydro Produksjon as 20.000 6503/1 Phillips Petroleum Norsk A/S 20.000 6503/4 KWE-DEA Norge AS 15.oon

259 2000 6506/2 * Norsk Chevron AS 40.000 6506/3 Norsk Agip A/S 30.000 6506/5 Enterprise Oil Norge AS 30.000

260 2000 6506/9 * BP Norge AS 100.000 6507/7

261 2000 6507/1 * BP Norge AS 50.000 6507/2 RWE-DEA Norge AS 30.000 Statoil ASA 20.000

Skarv (part) (+PL 212) 262 2000 6507/2 BP Norge AS 30.000 Statoil ASA 30.000 Enterprise Oil Norge AS 25.000 Mobil Development Norway A/S 15.000

263 2000 6507/io * Norsk Hydro Produksjon as 40.000 6507/11 Statoil ASA 30.000 Norsk Chevron AS 30.000

LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 195 Field/PL Block Licensees (*oDerator) Share (0,)

264 2000 6706/5 * Esso Expl & Prod Norway AS 30.000 6706/6 Norske Conoco A/S 25.000 6707/4 Phillips Petroleum Norsk A/S 25.000 Petoro AS 20.000

North Sea round 2000

265 2001 16/2 * Statoil ASA 30.000 16/3 Petoro AS 30.000 Esso Expl& Prod Norway AS 25.000 Enterprise Oil Norge AS 15.000

266 2001 * Enterprise Oil Norge AS 40.000 Norsk Hydro Produksjon a.s 30.000 RWE-DEA Norge AS 30.000

2ti7 2001 * Enterprise Oil Norge AS 40.000 Norsk Hydro Produksjon a.s :30.000 RWE-DEA Norge AS :30.000

268 2001 34/5 * Norske Conoco A/S 40.000 3416 Fortum Petroleum AS 30.000 34/9 Norsk Chevron AS 30.000

269 2001 35/1 * Phillips Petroleum Norsk AS 40.000 Enterprisc Oil Norge AS 30.000 Norsk Agip A/S 30.000

270 2001 35/3 * RWE-DEA Norge AS 51.000 Aker Energy AS 49.000

196 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 197 Company interests in fields 19 and production licences The company's share in a field in productioddiscovery is followed in brackets by the production licence(s) which embrace that field/discovery. The company's interest in the separate production licence(s) is shown for discoveries where the area is not unitised. Operatorships are indicated with an *. The sale of about 6.5 per cent of the SDFI's assets in March 2002 is reflected in the interests shown. Otherwise, interests are shown at 1January 2002.

Aker Energy AS Discoveries : 2416-2 Kameleon 0.32% An interest is held in the following production licence: 270 0.00% 0.00%

Amerada Hess Norge AIS __~BP Norge AS Fields: Fields: Hod 25.00% (033) Draugen 18.3fi% Snorre 1.18% (057, 089) Gyda* 56.00% Valhall 28.09% (006R, (Y33B) HodX 25.00% Tam ba r* 55.00% Discoveries: Ula* 80.00% 2/12-1 Freja' 50.00% (113) Valhall* 28.09% 7121/4-1 Snehvit 3.26% (064, 077, 078, 097, (incl Albatross and Askeladd) 099, 100, 110) Discoveries: 6305/5-1 Ormen Lange 45.0M Interests are also held in the following production 0.00% licenres: 006C*, 008*, 066*, 103*, 122, 144*, 146, 14X*, 9.44% 168*, 197*, 202, 204, 220, 230, 231, 232. 6507/5-1 Skarv* 0.00% 30.00'% 30.00% AIS Norske Shell -___ Fields: Interrsts are also held in the following production Draugenl 26.20% (093) licences. 006, 006C. 019C*, 0'25, 158,167, 176, 187*, 195, Murchison 2.22% (037C, UK) 200,210,216*, 217,218*, 240*, 243*, 251,254*, 260*, Statfjord R.S5% (037, ZJK) 261*, 262*. Statfjord East 5.00% (037. 089) Statfjord North 10.00% (037) BP (UK) 5.50% (037, 089) Fields: Troll 8.10% (054, 085) Statfjord 4.84% (037, UK)

Discoveries: 317-4 Trym* 50.00% (147) Chevron (UK) 3519-1 Gjea 12.00% (153) 6305/5-1 Ormen Lange* 25.00% (208) Fields: 15.00% (209) Statfjord 4.84% (037. UK) 16.00% 050)

Interests are also held in the followinE production Det Norske Oljeselskap AS licences 158*, 176', Z10*, 246*, 251,255*. Fields: Gtitne 10.00% (029,048B) Jotun 3.25% (027B, 103B) AS Ugland Rederi

Fields: Discoveries: Heimdal 0.17% (036) 24/6-2 Kameleon 0.00% (036) Vale 0.32% (036) 0.00% ((188) 15.00% (203)

COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 199 2514-3 Gekko 15 008 (203) Statfjord North 10.00% (037) 2515-5 0 00% (102) Sygna 10.23'); (037, 089) 15 00% (203) Tordis 10.50% (089) (incl Tordis East and Borg) Interests are also held in the following production Vigdis 10.50% (089) licence5 OOBC, 148

Dong Norge AS Discoveries: 1511-1 Dagny 100 00% (029) Discoveries: 0.00% (048) 2112-1 Freja 20.00% (1 13) 15/9-19 S Volve 28.00% (046) 317-4 Trym 20.00% (147) 2511 1-16 10 00% (169) 630515.1 Ormen Lange 0.00% (208) 10.00% (209) Enterprise Oil Norge AS 5 91$ (250) Fields: Hod 25.0(1% (033) Intrrrsts are also held in the following production Jotun 45.00% (027B, 103B) licences. 001B*, 028*, 028R*, 028C*, 029B*, 055B, 072B*, Murchison 0.23% (037C, UK) 189*, 197,218, 241*, 242*, 264*, 265. Norne 6.00% (128,128B) Statfjord 0.89% (037, GI<) Statfjord East O.S2% (037, 0x9) Fortum Petroleum AS Statfjord North 1.04% (037) Fields: Snorre 1.185 (057, 089) Brage 12.26% (053B, 055, 185) Sygna 0.57% (037, 089) Heidrun 5.12% (095, 124) Valhall 28.09% (006B. 033B) Asgard 7.00% (062, 074,094, 131, 237) Discoveries: 650715-1 Skarv 40.008 (159) Interests are also held in the following production 25.00% (212) licences. 055B. 201, 219, 220, 2'25, 226, 227, 229, 256, 268. 25.00% (262) 6608110-6 Svale 10.00'% (128)

Gaz de France Norge AS Interrsts are also held in the following production licencrs: 0018, 006, OOGC, 028B, 035, 144, 1.50, 159, 171, Fields: 201, 204, 216, 219, 225, 226, 227. 229, 238, 24'2. 244, 256, Fram 15.00% (090) 259, 262, 265, 2M*, Xi*,269. Njord 20.00% (107, 132)

Discoveries: Esso Exploration and Production Norway AS 712114-1 Snehvit 12.00% (064, 077, 078, 100, (incl Albatross and Askeladd) 097, 099, 110) Fields: Balder* (incl Ririghorne) 100.00% (001,027,027C, 169) Interests are also held in the following production Brage 16.349; (053B, 055. 185) licences: 006C, 174, 191 Grane 25.64% (001, Ifi9131, 169132) Gungne 28.001 (046) Jotun* 45.00% (027B, 103B) ldemitsu Petroleum Norge AS Murchison 2.22% (037C, UK) ldemitsu Oil Exploration (Norsk) AS Sigyn* 40.00% (072) Sleipner East 30.40% (046) Fields: Sleipner West 32.24% (029, 036) Fram 15.00% (090) Snorre 11.16% (057, 089) Snorre 9.60% (057, 089) Statfjord 8.55% (037, UIQ Statfjord East 1.80% (037, 089) Statfjord East 10.25% (037, 089) 4.32% (037, 089)

200 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES Tordis 9.60% (089) Interests are also held in the following produetion (incl Tordis East and Borg) licences: 092, lT2, 152, 172*, 206*, 211*, 215, 224, 230*, Vigdis 9.60% (089) 231*, 232*, 245, 246, 247, 24X, 257, 262.

Interests are also held in the following production licences: 174, 191, 19G. Norsk Agip A1S

Fields:

Marathon Petroleum Norge AS Ekofisk. Eldfisk and Embla 12.39% (018) Tor 10.821 (006, 018) Fields: Kristin 9.00% (134B, 199) Heimdal (036) Asgard 7.90% (062, 074, 094, Vale (036) 134, 237) Norne 6.9096 (12X, 128B) Discoveries: 2416-2 Kameleon 46.90% Discoveries: 50.00% 6608110-6 Svale 11.508 (128) 30.00% 2514-3 Gekko 3o.oox Interrsts are also held in the following production 2515-3 Skirne 20 00YI licences: 0188,044, 122*, 145, 201*, 211, 219,225,226, 2515-4 Byggve 20.00% 227,229*, 233,234,235,23fi, 238*, 239*, 256*, 259,269 25/55 20.001 30.00$

Norsk Chevron AS Interests are also held in tlie follrmng production licrneer 025, 088, 150, 187, 201, 249 Fields: Draugen 7.56% (093)

Mobil Development Norway AIS Interests are also held in the following production licencrs: 158, 176, 252, 259*, 263, 268. Fields: Fram 25.00% (090) Kristin 10.50% (134B, 199) Norsk Hydro Produksjon a.s Mikkel 33.48% (092, 121) Murchison 3.33% (037C, UK) Fields: Njord 20.00% (107, 132) &age* 24.44% (053B, 055, 1x5) Oseberg 4.33%) (053, 079) Ekofisk, Eldfisk and Embla 6.65% (018) Oseberg East 7.00% (053) Fram* 25.09% (090) Oseberg South 3.70% (079, 104, 171K) Frigg Norwegian shore 19.99% (024) Oseberg West 4.33% (053) Grane* 3n.ow (001, 169R1, 169L32) Statfjord 12.82% (037, UK) Gullfaks (incl Gullfaks West) 9.00X (050, 050B) Statfjord East 7.50% (037. 089) Gullfaks South 9.00% (037R, 050, 050B) Statjord North 15.00% (037) (incl Rimfaks and Gullveig) Sygna 8.25% (037, 089) Gungne 9.40% (046) Asgard 7.35% (062,074,094, Heimdal* 19.27% (0%) 134, 237) Kristin 12.00% (134B, 199) Kvitebjern 15.00% (193) Discoveries: Mikkel 10.00% (092, 121) 30/6-17 Alpha Cook 4.33% (053) Njord* 22.50% (107, 132) 3016-18 Kappa 4.33% (053, 079) Norne 8.10% (128, 128R) 6406/2-1 Lavrans 15.00% (199) Oseberg* 34.00% (053, 079) 640711-2 Tyrihans South 0.00% (073) (incl Oseberg West) 33.00% (091) Oseberg East* 34.06% (053) 650715-1 Skarv 0.00% (159) Oseberg South* 34.00% (079, 104, 17113) 15.00% (212) Sigyn 10.00% (072) 15.00% (262) Sleipner East 10.0UX (046)

COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 201 Sleipner West 8.85% (029, 046) 225*, 226*, 227*, 228*, 230, 231, 232, 233, 234, 235, 236, Snorre* 17.65',& (057, 089) 243,244*, 245,247*, 248*, 249*, 252*, 253*, 257,258, Statfjord East 6.64% (037, 089) 263*, 266, 267. Sygna 5.98% (037, 089) Tor 5.81% (006, 018) Tordis* 1?.28% (089) Norske AEDC AIS (incl Tordis East and Borg) Fields: Troll* 9.78% (054, 085) Gyda (incl Gyda South) 5.00% (019H) Tune* 40.00% (0.74,o5x 190) Vale* 28.53% (036) Varg* 42.00% (038) Norske Conoco AIS Vigdis" 13.28% (089) Fields: Visund* 20.308 (120) Grane 6.40% (001, 16981,16982) Asgard 9.60% (062, 074, 094. Heidrun 24.29% (095, 124) 134, Z37) Huldra Discoveries: 23.34% (051, 052) Jotun 3.75% (0278. 10:3R) 1515-1 Dagny 0.00% (029) Murchison 2.68% (037C, IIK) 9.30!& (048) Njord 15.00% (107, 132) 1515-2 9.30% (048) Oseberg South 7.70% (079, 104, 1718) 15/9-19 S Volve 9.40% (046) 6.65% (037, 089) 15/12-12 42.00% (038) Wgna Statfjord 10.33% (037. lJK) 2416-2 Kameleon 28.53% (036) Statfjord East 6.04% (037, 089) 0.0OX (088) Statfjord North 12.08% (037) 35.00% (203) Troll 1.62% (054, 085) 2514-3 Gekko" 35.00% (203) Visund 9.10%~ 2515-3 Skirne io.onR (102) (120) 2515-4 Byggve 10.00% (102) Discoveries: 2515-5 10.002 (102) 35.00% (203) 2416-2 Kameleon 0.00% (036) 2511 1-16* 45.001 (169) 0.00% (088) 20.00% (203) 3016-17 34.00% (05% 2514-3 Gekko (203) 3016-18 Kappa* 34.00% (053, 079) 20.00% 2515-5 0.00% (102) 3019.19 Delta 34.00% (0711) 20.00% (203) 40.00% (190) 3519-1 Gjm* 30.00% (153) Interests arc also held in tlir following production 630515-1 Ormen Lange* 0.00% (208) licences: 103B*, 174.195,215,217,218,254.264,268* 25.00% (209) 14.78% (250) 640612-1 Lavrans 12.00% (199) Norske Moeco AIS 640711-2 Tyrihans South 12.00% (073) 12.00% (091) Fields: 640711.3 Tyrihans North 12.00% (073) Gyda (incl Gyda South) 5.00% (0198) 650715-1 Skarv 10.00% (159) 0.00% (212) O.OW% (262) Paladin Resources Norge AS 6608/10-6 Svale 13.50% (128) Fields: 712114-1 Snehvit 10.00% (064,077,078, 097, Brage 20.00% (053R, 055, 185) (incl Albatross and Askeladd) 099, 100, 110) Huldra 0.50% (051, 052B) Interests are also held in tlw following production Njord 15.00% (107, 132) licences: 0188, 019C, 026, 028C. 035*, OSOC, 055R*, Veslefrikk 9.00% (052, 053) 085B*, 134, 143*, 146*, 150,156*, 159, 171*, 174', 189, An interest is held in the following production licence: 0558. M*, mi*,202,206,213, 2i5*, m*,m*, YW, m*,

202 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES Pelican AS 2515-5 30.00% (102) 0.00% (203) Fields: 25/11-16 30.00% (169) Glitne 9.30% (029, 048B) 3016.17 35.00% (053) Gyda (incl Gyda south) 34.00% (O19B) 30/6-18 Kappa 37.67% (053, 079) Tambar 45,001 (ONB, 065) 30/9-19 Delta 42.00% (079) Ula 5.00% (019) 40.00% (190) 3519-1 Gjaa 30.00$ (153) Interests are also held in the following production 6305/5-1 Ormen Lange 30.00Dx. (208) liceiices: OlSC, 244. 35.00% (209) 45.00%8 (250) 640612-1 Lavrans 27.00% Petoro AS1 (199) ______6608110-6 Svale 24.55% (128) 1 Petoro AS servcs as the licensee for the SDFI. 7121/4-1 Snahvit 30.00% (064, 077, 078, 097, (incl Albatross and Askeladd) 099, 100. I 10) Fields: Brage 14.26% (053B, 055, 185) Interests arc also held in thr following production Draugen 47.88% (093) licences: 018B, 028C, 040,043,050C, 055B, 085R,102B, Ekofisk, Eldfisk and Embla 5.00% (018) 152, 171, 172, 176, 189, 195, 245, 248, 253, 254, 255, 256, Grane 30.00% (001, 169R 1 arid 2) 258,264,265 Gullfaks (incl Gullfaks West) 30.00% Gullfaks South 30.00% (incl Rimfaks and Gullveig) Phillips Petroleum Norsk AIS Heidrun 58.16% (095, 124) Phillips Petroleum Company Norway He im d a I 20.00% (W36) ______Huldra 31.96% (051, 0528) Fields: Jotun 9.00%# (O27B, 103K) Ekofisk, Eldfisk and Embla* 35 11% (0181 Kristin 18.90% (134B, 199) Tor* 30 66% (006, 018) Kvitebjern 30.00% (193) Njord 7.501 (107,132) Ititerests are also h~ldin the following produrtion Norne 54.00% (128, 12XB) licences: 018B*, 044*, 143, 145*, 146, 200, 213, 224, 229, Oseberg (incl Oseberg West) 37.67% (053,079) 258.264,269*. Oseberg East 35.00% (053) Oseberg South 26.38% 1079, 104, 171B) Snorre 30.00% (057. 089) RWE-DEA Norge AS lNorske RWE-DEA AS

Statfjord East 30.00% (037, 089) ~~ Statfjord North 30,00% (037) Fields: Sywa 30.00% (037, 089) Snorre 8.88% (057, 089) Tor 3.69% (006, 018) Statfjord East 1.40% (037, 089) Tordis 30.00% (089) Sygna 1.2611, (0:17, 089) (incl Tordis East and Borg) Tordis (inclTordis East and Borg) 2.80% (089) Troll 56.00% (054, 085) Veslefrikk 13.50% (052, 053) Tune 40.00% (034, 053, 190) Vigdis 2.80% (089) Varg 30.00% (038) Veslefrikk 37.001 (052,053) Discoveries: Vigdis 30.00% (089) 7121/4-1 Snahvit 2.81%# (064, 077, 078, 097, Visund 30.00% (120) (incl Albatross and Askeladd) 099, 100, 110) Asgard 35.5011, (062, 074, 094, 3519-1 Gjaa 8.00% (153) 134, 237) Interests arc also held in the following production Discoveries: licences: 052B, 166*, 239, 252, 253, 258, 261, 266. 267, 15/12-12 270*. 25/5-3 Skirne 25/54 Byggve

COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 203 Statoil ASA 35/9-1 Gjoa 20.00% (153) 6305/5-1 Ormen Lange Fields: 0.00% (208) 15.00% Brage 12 70% (053B, 055. 185) (209) 8.87% (250) Ekofisk, Eldfisk and Embla (1 95% (018) 640612.1 Lavrans* ~iin~, (199) Fram 20 owo (090) 6407/1-2 Tyrihans South* 54.67%, (073) Friw 12 16% (024) 55.00% (0111) Glitne* 58 90% (029. 048R) 6407/1-3 Tyrihans North 54.67% (073) Gullfaks* (incl Gullfaks West) hl 00Y (050, osoiq 6507/5-1 Skarv 50.00% (159) Gullfaks South* 61 00% (037~,050, 050~) (incl Rimfaks and Gullveig) 30.00% (212) 3n.oo% (262) Gungne* 52 61% (046) 6608110-6 Svale" 40.45% Heidrun* 12 43% (095, 124) (128) 7121/4-1 Snahvit' 22.29% (064, Heimdal 20.00% (036) 077,078, 097, (incl Albatross and Askeladd) ow, 100, 110) Huldra" 19.66% (051, 052B) Kristin* 46.60% (134B, 199) Intert,sts are also held in the following production Kvitebjorn* 50.00% (193) licences: 018B, 025*, 026, 028C, 040, 043, 044, 050C*, Mikkel* 56.52% (092, 121) 055B, 066, 072B, 0851%*,102B, 122, 127, 143, 144, 145, 146, Murchison 11.52% (037C, IIK) 152*, 156, 158, 159*, 166, 167*, 171, 172, 174, 187, 191, Norne* 2m%l (128,128B) 197, ZOO*, 201, m*,204*, 210,211, m*,m,216,217*, Oseberg (incl Oseberg West) 14.00'3, (053, 079) 218, 221,222,223,224, 225, 226. 227,m,229. 230, Oseberg East 14.00$ (053) m*, 231, 232, 233*, 234*, 235*, 236*, 238, 239, 240, 241, 243, Oseberg South 18.225 (079,104.i7i~) 245*, 248, 251*, 255, 257*, 261, 262, 263, 265*. Sleipner East* 49.6(1% (046) Sleipner West" 49.50% (029, 046) Snorre i4.4n% (057, 089) Svenska Petroleum Exploration A/S Sigyn 50.00% (072) Statfjord* 44.34% (037, UK) Fields: Statfjord East* 25.05% (037, 089) Huldra 0.21% (051, 052B) Statfjord North* 21.88% (037) Ula 1.j.O(J% (019) Sygna* 24.73'b (03i. 089) Veslefrikk 4.5001 (052, 053) Tor 0.83'% (006, 018) Tordis 28.22% (089) Discoveries: (incl Tordis East and Borg) 7121/4-1 Snohvit 1.24% (064. 077, 078, 097, Troll* 20.801 (054, 085) (incl Albatross and Askeladd) 099, 100, 110) Va rg 28.00% (038) Veslefrikk* 18.00% (052, 053) Vigdis 28.224" (089) TotalFinaElf Exploration Norge AS Visund 32.90x (120) Fields: Asgard* 25.00% (Oli2. 074, 094, Ekofisk, Eldfiskand Embla 39.90% 134, 237) (018) Frigg* 28.66% (024) Discoveries: Glitne 21.80X (029, 048R) 2/12-1 Freja RO.OO% Gungne iom% (046) 3/7-4 Trym 30.00% Heimdal 16.76X8 (036) 1515.1 Dagny* 0.00% Hod 25 nox, (033) fiH.YOYl Huldra 24.33% (051, 052B) 15/5-2* 68.90'%> Kristin 3.00% (134B, 199) 15/9-19 S Volve* 52.~9:~ Kvitebjorn 5.00% (19.3) 15/12-12 28.00% Oseberg (incl Oseberg West) 10.00% (053,079) 25/11-16 15.nox Oseberg East io.no% (053) 30/6-17 14.00% Oseberg South 10.00% (079,104, 171~) 30/6-18 Kappa 14.00% Sleipner East 1om% (046) 3019-19 Delta 14.00% Sleipner West 9.412 (029,046) 0.00'x Snorre 5.95% (057. 089)

204 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES Statfjord East 2.80% (037, 089) Sygna 2..52',6 (037, 089) Tor 48.20% (006, 018) Tordis 5.60% (089) (inclTordis East and Borg) Troll 3.69963 (054, 085) Tune 20.oox> (034, 053, 190) Vale 24.248 (036) Va Iha1 I 15.72% (00613, 033R) Veslefrikk 18.00% (052, 053) Vigdis 5.60% (089) Visund 7.70% (120) Asgard 7.65% (062, 074, (194, 134, 237)

Discoveries: 15/5-1 Dagny 0.00% 21.80% 1515.2 21.80% 15/9-19 S Volve 10.00YV 2416-2 Kameleon 24.24% 50.00% 0.000rl 2515-3 Skime* 40.00% 2515-4 Byggve* 40.00% 2515-5 40.00% 0.00% 3016-17 10.00% 30/6-18 Kappa 10.00% 3019-19 Delta 10.00% 20.00% 640711.2 Tyrihans South 33.33& 0.00% 640711.3 Tyrihans North 33.33% 712114-1 Snohvit 18.40% (incl Albatross and Askeladd) 099, 100, 110)

Interests are also held in the following production licences: 006C, 018R, 026*, 040*, 043*, 044,085B, 088", 102B*, 127*, 146, 150*, 211, 216, 219, 221, 222, 223, 224*, 249,251, 254, 255,258*.

COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 205 20 White Papers, etc WHITE PAPERS OF GENERAL INTEREST Report no 37 (1998-99) to the Storting and Recoms no 221 (1998-99) and no 67 (1999-2000) from the Storting Report no 76 (1970-71)to the Storting and Recom no Supplement to Report no 46 (1997-98) on petroleum 294 (1970-71) from the Storting operations etc. Exploration for and exploitation of submarine natural resources on the Norwegian continental shelf. Report no 47 (1999-2000) to the Storting and Recom no 29 (2000-2001) Proposition no 113 (1971-72) to the Storting and Decommissioning of redundant pipelines and cables on Recom no 316 (1971-72) from the Storting the Norwegian continental shelf The formation of the Norwegian Petroleum Directorate and a state-owned oil company etc. Report no 39 (1999-2000) to the 5torting and Recom no 89 (2000-2001) Report no 25 (1973-74) to the Storting and Recom no Petroleum operations 275 (1973-74) from the Storting The place of petroleum operations in the Norwegian PROPOSITIONS (BILLS) RELATING TO THE community. ACT PERTAINING TO PETROLEUM ACTIVITIES/ STATUTES RELATING TO PETROLEUM Report no 30 (1973-74) to the 5torting and Recom no OPERATIONS 381 (1973-74) from the Storting Petroleum operations on the Norwegian continental shelf. Proposition no 72 (1982 -83) to the Odelsting and Recom no 33 (1984-85) from the Odelsting Report no 40 (1982-83) to the Storting and Recom no Act Pertaining to Petroleuni Activities, see NOU 1979: 43. 183 (1984-85) from the Storting Perspectives in the petroleum activity, see NOU 1983: Proposition no 37 (1986-87), Prop no 64 (1986-871, Prop 27 The petroleum activity's future. no 57 (1987-88) to the Odelsting and Recom no 65 (1987-88) from the Odelsting Report no 73 (1983-84) to the Storting and Recom no Amendments to the Petroleum Act (dropping of royalty 321 (1983-84) from the Storting for fields for which the plan for development and opera- The organisation of state participation in petroleum tion has been approved after 1January 1986).

Proposition no 25 (1988-89) to the Odelsting and Report no 33 (1984-8s) to the Storting and Recom no Recom no 55 (1988-89) from the Odelsting 87 (1984-85) from the Storting Rules on compensation to fishermen. The effect of the reorganisation of state participation in petroleum operations. Proposition no 82 (1991-9)to the Odelsting and Recom no 17 (1992-93) from the Odelsting Report no 46 (1986-87) to the Storting and Recom no Amendments to the energy legislation as a conse- 68 (1986-87) from the Storting quence of an EEA agreement. Petroleum operations in the medium to long term. Proposition no 63 (1994-95) to the Odelsting and Report no 21 (1988-89) to the Storting and Recom no Recom no 73 (1994-95) from the Odelsting 115 (1988-89) from the Storting Amendments to Act no 11 of 22 March 1985 pertaining The organisation of Statoil. etc. to petroleum activities (the Petroleum Act) following the incorporation of directive 94/22/EC of the Report no 26 (1993-94) to the Storting and Recom no European Parliament and of the Council of Ministers on 180 (1993-94) from the Storting the conditions for granting and using authorisations for Challenges and perspectives for petroleum operations the prospection, exploration and production of hydro- on the Norwegian continental shelf. carbons (the licensing directive) in Appendix IV Energy of the EEA agreement. Report no 44 (1994-95) to the Storting and Recom no 149 (1995-96) from the Storting Proposition no 43 (1995-96) to the Odelsting and Norway as a gas nation - use of natural gas in Norway. Recom no 7 (1996-97) from the Odelsting Act pertaining to Petroleum Activities. Report no 38 (1995-96) to the Storting and Recom no 250 (1995-96) from the Storting Proposition no 52 (1997-98) to the Odelsting and Gas-fired power stations in Norway. Recom no 54 (1997-98) from the Odelsting Amendments to Act no 3 of 31 March 1949 pertaining Report no 46 (1997-98)to the Storting and Recom no to the construction and safeguarding of facilities for 211 (1998-99) from the Storting automotive fuels. Petroleum operations.

WHITE PAPERS, ETC 207 ,

Proposition no 54 (1998-99) to the Odelsting and Proposition no 12 (1994-95) to the Odelsting and Recom no 74 (1998-99) from the Odelsting. Recom no 17 (1994-95) from the Odelsting Act relating to the registration of imports and deliveries Tax-related requirements concerning the equity of joint of crude oil in the European Economic Area, etc. stock companies engaged in exploitation, processing and transport through pipelines of petroleum on the Proposition no 47 (2000-00) to the Odelsting and Norwegian continental shelf. Recom no 69 (2000-01) from the Odelsting. Act relating to guarantees from Statoil ASA for the Proposition no 47 (1995-96) to the Odelsting and issue and sale of the state's shares Recom no 35 (1996-97) from the Odelsting Aniendtnent to petroleum taxation etc. Proposition no 48 (2000-00) to the Odelsting and Recom no 70 (2000-01) from the Odelsting. Proposition no 36 (1997-98) to the Odelsting and Amendments to Act no 72 of 29 November 1996 pertai- Recom no 36 (1997-98) from the Odelsting niug to petroleum activities (management arrange- Changes in petroleum taxation. ments for the state's direct financial inttwst), Proposition no 86 (1998-99) to the Odelsting and PROPOSITIONS RELATING TO TAXATION Recom no 1 (1999-2000) from the Odelsting AND ROYALTIES Amendments to the law on taxes and duties.

Proposition no 26 (1974-75) to the Odelsting and Proposition no 91 (1998-99) to the Odelsting and Recom no 60 (1974-75) from the Odelsting Recom no 9 (1999-2000) from the Odelsting Act relating to the taxation of submarine petroleum Amendment to Act no 11 of 25 April 1986 relating to the deposits, incl establishment of the norni price system. division of costs for removing installation on the continental shelf. Proposition no 37 (1979-80) to the Odelsting and Recom no 64 (1979-80) from the Odelsting PROPOSITIONS 1997 -98 Amendments to Act no 35 of 13 June 1975 relating to the taxation of submarine petroleum deposits, etc. Proposition no 1 (1997 -98) to the Storting and Budget Recom no 9 (1997-98) from the 5torting Proposition no 33 (1985-86) to the Odelsting and Ministry of I'etroleum and Energy. Recom no 28 (1985-86) from the Odelsting The distribution of expenses associated with the Proposition no 1 Supplement no 3 (1997-98) to the removal of installations offshore and amendments to Storting and Budget Recom no 1-14 (1997-98) from the the Petroleum Taxation Act. Storting Balancing the budget for 1998, including national Proposition no 3 (1986-87) to the Odelsting and Recom health insurance. no 18 (1986-87) from the Odelsting Amendment to the Petroleum 'Rl'rutation Act. Proposition no 18 (1997-98) to the Storting and Recom no 56 (1997-98) from the Storting Proposition no 61 (1986-87) to the Odelsting and Changes to appropriations in the 1997 budget relating Recom no 85 (1986-87) from the Odelsting to the Ministry of Petroleum and Energy. Amendments to the Petroleum Taxation Act (equity share transfers offshorr) . Proposition no 52 (1997-98) to the Storting and Recom no 204 (1 997-98) from the 5torting Proposition no 64 (1991-92) to the Odelsting and Report on investment delays in the petroleum sector, Recom no 89 (1991-92) from the Odelsting plans for tlevt4opment and operation of Gullfaks satel- Amendments to Act no 8 of 18 August 1911: On taxes liteb phase I1 and Snorre 11, and SIIFI participation in on capital and incomes (Income Tax Act), etc (chapter the ethane plant. 8, taxation of subsidiaries engaged in activities liable for special tax on the Norwegian continental shelf). Proposition no 65 (1997-98) to the Storting and Recom no 252 (1997-98) from the Storting Proposition no 12 (1991-92) to the Odelsting and Changes to priorities and supplementary appropriations Recom no 40 (1991-92) from the Odelsting in the 1998 budget. Amendment to Act no 35 of 13 June 1975 on taxation of subsea petroleum resources. PROPOSITIONS 1998-99

Proposition no 17 (1990-91) to the Odelsting and Proposition no 1 (1998-99) to the Storting and Budget Recom no 19 (1990-91) from the Odelsting Recom no 9 (1998-99) from the Storting The imposition of taxes on emissions of carbon dioxide Ministry of Petroleum and Energy. from offshore petroleum operations etc.

208 WHITE PAPERS, ETC Proposition no 1 Supplement no 12 (1998-99) to the Proposition no 53 (1999-2000)to the Storting and Storting and Budget Recoms Nos 1 and 6 (1998-99) Recom no 224 (1999-2000) from the Storting from the Storting Development of Kvitebjsrn and Grane, decommissio- Changes to the proposals in the 1999 budget relating to ning of installations on Tommeliten Gamma and Idlle- the Ministry of Petroleum and Energy. Prigg, and the status of cost developments for the Asgard chain. Proposition no 8 (1998-99) to the Storting and Recom no 80 (1998-99) from the Storting PROPOSITIONS 2000-01 Development of Huldra, SDFI participation in Vestprosess, development of costs on As.wrd, etc, and Proposition no 1 (2000-01)to the Storting and Budget sundry dispositions. Recom no 9 (2000-01) from the Storting Ministry of Petroleum and Energy. Proposition no 23 (1998-99) to the Storting and Recom S no 51 (1998-99) from the Storting Proposition no 19 (2000-01) to the Storting and Recom Changes to appropriations in the 1998 budget rclating no 67 (2000-01) from the Storting to the Ministry of Petroleum and Energy. Changes to appropriations in the central government budget for 2000 relating to the Ministry of Petroleum Proposition no 73 (1998-99) to the Storting and Recom and Energy no 219 (1998-99) from the Storting Consent to conclude 1) a treaty between Norway and Proposition no 36 (2000-01) to the Storting and Recom the UK on changes to the Frigg treaty of 10 May 1976 no 198 (2000-01) from the Storting and 2) a framework agreement between Norway and Ownership of Statoil and future nianagement of the the lJK relating to the laying and operation of, as well SDFI. as jurisdiction over, supplementary submarine pipelines. Proposition no 40 (2000-2001) to the Storting and Recom no 118 (2000-01) from the Storting Proposition no 80 (1998-99) to the Storting and Recom Appropriations for 2001 relating to preparations for no 218 (1998-99) from the Storting recommended measures in Proposition no 3ti (2000-01) Relating to a supplementary appropriation for special to the Storting on ownership of Statoil and future mana advice in connection with the organisation of the state’s gement of the SDFI. involvement in petroleum operations. Proposition no 68 (2000-01) to the Storting and Recom Proposition no 81 (1998-99)to the Storting and Recom no 262 (2000-01) from the Storting no 234 (1998-99) from the Storting Budget con~~qnencesfor 2001 of iniplementing reconi- Capital expansion in Norsk Hydro ASA as part of an mended measures in Proposition no 36 (2000-01) to the offer to acquire Saga Petroleum ASA. Storting on ownership of SLitoil and future management of the SDFI. PROPOSITIONS 1999-2000 PROPOSITIONS 2001-02 Proposition no 1 (1999-2000) to the Storting and Proposition no 1 (2001-02) to the Storting and Budget Budget Recom no 9 (1998-99) from the Storting Recom no 9 (2001-02) from the Storting Ministry Petroleum and Energy. of Ministry of Petroleum and Energy.

Proposition no 1 Supplement no 9 (1999-2000) to the Proposition no 24 (2001-02) to the Storting and Recom Storting no 68 (2001-02) from the Storting Changes to the proposals in the central government Changes to appropriations in the central government budget for 2000 relating to the Ministry of Petroleum budget for 2001, etr, relating to the Ministry of and Energy. Petroleum and Energy and development, installation and operation of the Kristin field. Proposition no 18 (1999-2000) to the Storting and Recom no 66 (1999-2000) from the Storting Proposition no 35 (2001-02) to the Storting Decommissioning of Statpipe 2/43 and changes to Development, installation and operation of the Snehvit appropriations in the central government budget for LNG project. 1999, etc, relating to the Ministry of Petroleum and Energy.

Proposition no 36 (1999-2000) to the Storting and Recom no 148 (1999-2000)fromthe Storting Development and operation of Ringhorne.

WHITE PAPERS, ETC 209 2 1 Useful postal addresses GOVERNMENT

Ministry of Petroleum and Energy Enterprise Oil Norge AS P 0 Box 8148 Dep, N-0033 Oslo P 0 Box 399, N-4002 Stavanger Tel+47 22 24 90 90, fax +47 22 24 95 65 Tel+47 51 84 30 00. fax +47 51 84 30 40

Norwegian Petroleum Directorate Esso Exploration and Production Norway AS P 0 Box 600, N-4003 Stavanger c/o Esso Norge AS Tel+47 51 87 60 00, fax +47 51 55 15 71 P 0 Box 60 Forus, N-4064 Stavanger Tel+47 51 60 60 60, fax +47 51 GO 66 60 Norwegian Petroleum Directorate, Harstad P 0 Box 787, N-9488 Harstad Gassco AS Tel+47 77 01 83 50, fax +47 77 06 38 95 P 0 Box 93, N-5501 Haugesund Tel+47 52 81 25 00, fax +47 52 81 29 46 Ministry of Labour and Government Administration Mobil Development Norway AIS P 0 BOX8004 Dep, N-0030 OSIO c/o Esso Norge AS Tel+47 22 24 90 90, fax +47 22 24 95 16 P 0 Box 60 Forus, N-4064 Stavanger Tel+47 51 60 60 60, fax +47 51 60 66 60 Ministry of Finance P 0 Box 8008 Dep, N-0030 Oslo Norsk Agip AIS Tel+47 22 24 90 90, fax +47 22 24 95 10 P 0 Box 101 Forus, N-4064 Stavanger Tel+47 51 57 48 00, fax +47 51 57 49 30 Ministry of the Environment P 0 Box 8013 Dep, N-0030 Oslo Norsk Chevron AS Tel+47 22 24 90 90, fax +47 22 24 95 60 P 0 Box 97 Sksyen, N-0217 Oslo Tel+47 22 13 56 60, fax +47 22 13 56 90

OPERATORS Norsk Hydro Produksjon as N-0246 Os10 Amerada Hess Norge AIS Tel+47 22 53 81 00, fax +47 22 53 27 25 Langkaien 1, N-0150 Oslo Tel+47 22 94 00 00, fax +47 22 42 63 27 Norske Conoco AIS P 0 Box 488, N-4003 Stavanger AIS Norske Shell Tel+47 51 41 60 00, fax +47 51 41 05 55 P 0 Box 40, N-4098 Tananger Tel+47 51 69 30 00, fax +47 51 69 30 30 Phillips Petroleum Norsk AIS Phillips Petroleum Company Norway 0P Norge AS P 0 Box 220, N-4098 Tananger P 0 Box 197 Forus, N-4065 Stavanger Te1+47 52 02 66 66, fax +47 52 02 66 00 Tel+47 52 01 30 00, fax +47 52 01 30 01

USEFUL POSTAL ADDRESSES 21 1 RWE-DEA Norge AS ldemitsu Petroleum Norge a.s. P 0 Box 243 Sksyen, N-0213 Oslo P 0 Box 1844 Vika, N-0123 Oslo Tel+47 21 30 30 00. fax +47 21 30 30 99 Tel+47 23 23 85 00, fax +47 23 23 85 01

Statoil ASA Marathon Petroleum Norge AJS N-4035 Stavanger c/o TKGI, Tel+47 51 99 00 00, fax +47 51 99 00 50 P 0 Box 1484 Vika, N-0116 Oslo Tel t47 23 11 11 11, fax +47 23 11 10 10 TotalFinaElf Exploration Norge AS P 0 Box 168 Dusavik, N-4001 Stavanger Norske AEDC AJS Tel+47 51 50 30 00, fax +47 51 72 66 66 P 0 Box 207, N-4001 Stavanger Tel+47 51 91 70 40, fax +47 51 91 70 41

OTHER LICENSEES Norske Moeco AJS P 0 Box 1545 Vika, N-0117 Oslo Aker Energy AS ‘re1 +47 22 83 11 70, fax +47 22 83 15 62 P O Box 243 Lilleaker, N-0216 Oslo Tel: +47 22 94 50 00. fax +47 22 94 70 80 Paladin Resources Norge AS P 0 Box 530 Sentrum. N-4003 Stavanger Det Norske Oljeselskap AS Tel+47 51 50 62 00, fax +47 51 50 62 26 P 0 Box 1345 Vika, N-0125 Oslo Tel+47 23 23 84 80, fax +47 23 23 84 81 Pelican AS P 0 Box 276, N-1323 Hsvik Dong Norge AS Tel147 67 10 36 00, fax +47 67 10 36 28 Agern All4 24-26 DK-2970 Hsrsholm, Denmark Petoro AS Tel: +45 45 17 10 22, fax: +45 45 17 10 44 P 0 Box 300 Sentrum, N-4002 Stavanger Tel+47 51 50 20 00, fax +47 51 50 20 01 Fortum Petroleum AS Strandveien 50A, N-1366 Lysaker Svenska Petroleum Exploration AS Tel+47 67 58 05 20, fax +47 67 58 05 05 c/o KPMG AS P 0 Box 57, N-4064 Stavanger Gaz de France Norge AS Tel+47 51 91 47 00. fax 147 51 81 48 00 P 0 Box 242 Forus, N-4066 Stavanger Tel+47 52 04 46 00, fax +47 52 04 46 01 AS Ugland Rederi P 0 Box 128, N-4891 Grimstad Tel+47 37 29 26 00, fax +47 37 04 47 22

212 USEFUL POSTAL ADDRESSES OTHER

Norwegian Oil industry Association (OLF) P 0 Box 547, N-4003 Stavanger Tel t47 51 84 65 00, fax +47 51 84 65 01 Oslo office P 0 Box 1929 Vika. N-0125 Oslo Tel t47 22 83 01 43, fax t47 22 83 01 44

USEFUL POSTAL ADDRESSES 213 /-

Concepts and conversions

RESOURCES Petroleum resources are a collective term which Volumes are given in standard cubic metres (scrn) embraces technically recoverable volumes of oil, for oil, condensate and gas, and in tonnes for NGL. gas and natural gas liquids (NGL). They are broken Total resources, which combine the various types down into discovered and undiscovered resources, of petroleum, are given in scm of oil equivalent with the former further subdivided into fields and (scm oe). discoveries. By definition, a discovery is made when an exploration well identifies recoverable petroleum. Total resources and reserves were given earlier in A discovery will be redefined as a field when its plan tonnes of oil equivalents (toe). for development and operation (PDO) has been approved by the authorities. Undiscovered 1 scm oil - 1.O scm oe resources are subdivided into mapped resources 1 scm condensate = 1.O scm oe (prospects) and unmapped resources (exploration 1000scmgas = 1.O scm oe models). 1 tonne NGL - 1.9 scm oe

RESERVES Reserves are defined in accordance with the NPD's classification system, and include remaining recoverable volumes of petroleum as specified in approved plans for fields in production, fields approved for development and fields which the Crude oil 1 scm 6.29 barrels licensees have decided to develop. Reserves may be 1 scm 1 0.84 toe regarded as the economically recoverable part of 1 tonne 1 7.49 barrels the petroleum in a field. Estimated resources and 1 barrel 159.00 litres reserves change from year to year as a result of new 1 barrellday 48.80 tonneslyear discoveries, production, and adjustments to csti- 1 barrellday 58.00 scmlyear mates for fields and discoveries based on new studies or drilling targets or on innovations in production technology.

Scm of Barrels MJ TKE kWh natural qas of oil 1 MJ, megajoule 1 0.278 0.0000341 0.0000236 0.0281 0.000176 1 kWh, kilowatt hour 3.60 1 0.000123 0.000085 0.0927 0.000635 1 TCE,tonne coal equivalent 29 300 8 140 1 0.69 825 5.18 1 TOE.tonne oil eauivalent 42 300 11 788 1.44 1 1190 7.49 1 scm natural gas 35.54 9.87 0.00121 0.00084 1 0.00629 1 barrel of crude oil (159 litres) 5 650 1 569 0.193 0.134 159 1

214 CONCEPTS AND CONVERSIONS