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The Norwegian Petroleum Sector
ETDE-NO-20086204
32/ 32 PLEASE BE AWARE THAT ALL OF THE MISSING PAGES IN THIS DOCUMENT WERE ORIGINALLY BLANK DISCLAIMER
Portions of this document may be illegible in electronic image products. Images are produced from the best available original document. Facts 2000 The Norwegian petroleum sector
Ministry of Petroleum and Energy
Visiting address: Einar Gerhardsen plass 1
Postal address: P O Box 8148 Dep, N-0033 Oslo
Tel +47 22 24 90 90 Fax +47 22 24 95 65
http://www.oed.dep.no E-mail: [email protected] Telex: 21486 oedep n Editor: Odd Reistad Solheim, MPE English editor: Rolf E Gooderham Edition completed: March 2000
Layout/design: Fasett AS, www.fasett.no Photos: ©Leif Berge and ©0yvind Hagen.Statoil. Field photos from operators' archives. Paper: 240 g Munken Lynx/115 g Galeri Art Silk Printer: Gunnarshaug Circulation: 15 000 Norwegian/10 000 English
ISSN-1501-6412 Foreword
The past year was challenging for the petroleum Norwegian crude oil production averaged 2.9 industry. Oil prices at the beginning of 1999 were million barrels per day in 1999.This output will about a third of the level they reached at the end. peak in the near future, and then begin to decline. We can also expect to see big oil price fluctuations But the Norwegian continental shelf nevertheless in future. Out of consideration for a stable develop- represents a substantial resource base. That applies ment of the oil market, the Norwegian economy to fields in operation, under evaluation and yet and the administration of the country's petroleum to be discovered. Recovering the bulk of these resources, the government resolved in December resources calls for new investment.They accordingly 1999 to continue the reduction of 200 000 barrels form a basis for continued activity, employment per day in Norway's crude oil production in the and government revenues from the industry. first quarter of 2000. In the years to come, maintaining the Norwegian Our most important ambition for the oil industry continental shelf as an attractive region for new is to maximise value creation for the Norwegian investment will be an important task. community while taking care of environmental The Norwegian oil and gas business has devel- and safety considerations. Petroleum revenues oped into an internationally competitive industry account for a very important part of the govern- In many areas - such as subsea production - it ment's overall income. From 1995, a growing ranks with the world leaders. Exports of petroleum- proportion of these earnings have been transferred related goods and services have expanded sharply to the Government Petroleum Fund.The greater in recent years. part of the revenues from the petroleum industry Our 16th offshore licensing round is now immi- are now being converted to financial assets at nent.The blocks placed on offer in the autumn the disposal of later generations. of 1999 will be awarded in the spring of 2000.
\cu-cf ft. Marit Arnstad Minister of Petroleum and Energy 21 February 2000 -ti •'.' Contents
Foreword 5 Concepts and conversion factors 11
CHAPTER 1-Summary 12 Petroleum resources 13 Exploration 13 Development 13 Oil and gas production 13 Proceeds from oil and gas sales 13
CHAPTER 2-A brief history 14 North Sea 15 Norwegian Sea 16 Barents Sea 16
CHAPTER 3 - State organisation of petroleum operations 18 Ministry of Petroleum and Energy 19 Ministry of Local Government and Regional Development 20 Norwegian Petroleum Directorate 20 State's direct financial interest (SDFI) 20
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 SDFI 27
CHAPTER 6 - Mainland operations, technology and petroleum research 30 Offshore supplies industry 31 Employment effects 31 Technology and petroleum research 32
CHAPTER 7 - Petroleum resources 34
CHAPTER 8-Production 38 Forecast production 41
CHAPTER 9 - Market status for Norwegian petroleum products 42 Norm price 43 Norwegian crude on the world market 43 Sales of natural gas liquids (NGL) 45 Dry gas sales 45 Refining 47 Retail sales 47 Petrochemicals 48
CHAPTER 10 - Environmental aspects 50 Emissions to the air 51 Discharges to the sea 52 Framework conditions 53 Cooperation with the industry 54
CHAPTER 11 - Legal and licensing framework 56 Introduction 57 Main features of the licensing system 57 Key documents and legal provisions in the licensing system 58 Other key legal provisions 59
CHAPTER 12 - Licensing rounds 60 1st-4th licensing rounds 61 5th-10th licensing rounds 61 11th-15th licensing rounds 61 Barents Sea project 62 Awards outside licensing rounds 62 North Sea round 62
CHAPTER 13 - Exploration operations 64 Seismic surveys 65 Exploration drilling 65 Discoveries 67 Future exploration 67
CHAPTER 14-Fields in production 70 Ekofisk area: 71 • Ekofisk 71 • Valhall 74 • Hod 75 • Gyda 76 . Ula 77 • Yme 78 Sleipner area: .. . 79 • Sleipner East 79 • Sleipner West 80 • Varg 81 Frigg area: 82 • Heimdal 82 • Frigg 83 • Fr0y 85 • Balder ' 86 •Jotun 87 Statfjord area: 88 • Statfjord _ . 88 • Statfjord North 90 • Statfjord East 91 • Murchison 92 . Gullfaks _ .. . 93 • Gullfaks South . _ . 95 • Rimfaks . . 96 • Gullveig . 97 • Vigdis 98 • Visund 99 • Snorre 100 • Tordis 101 Oseberg and Troll area: . .._ 102 • Oseberg . 102 • Oseberg East 104 • Togi 105 • Veslefrikk 106 • Brage,. _ 107 • Troll Phase II ... 108 • Troll Phase I 110 Norwegian Sea: 112 • Njord ...... 112 • Draugen 113 • Heidrun 114 • Nome .. 115 •Asgard 116
CHAPTER 15 - Fields under development 118
CHAPTER 16-Future developments ..... 124
CHAPTER 17 - Pipelines and land facilities _ ...... 138
CHAPTER 18 - Licence interests on the Norwegian continental shelf 154
CHAPTER 19 - Company interests in fields and production licences 176
CHAPTER 20-White Papers, etc .. ... 184 White Papers of general interest _ 185 Proposition (bills) relating to the Act Pertaining to Petroleum Activities 185 Propositions relating to taxation and royalties 186 Propositions 186
CHAPTER 21 - Useful postal addresses 188 Government ... 189 Operators .. 189 Other licensees 190 Other 190 Concepts and conversion factors
for fields and discoveries based on new studies or RESOURCES innovations in production technology. Volumes Petroleum resources are a collective term which are given in standard cubic metres (scm) for oil embraces technically recoverable volumes of and gas, and in tonnes for NGLs.Total resources, oil, gas and natural gas liquids (NGLs).They are which combine the various types of petroleum, broken down into discovered and undiscovered are given in scm of oil equivalent (scm oe). resources, with the former further subdivided into Conversion factors for oil equivalent are calcu- fields and discoveries. By definition, a discovery lated from the average calorific value for each is made when an exploration well identifies petroleum type: recoverable petroleum. A discovery will be re- defined as a field when its plan for development 1 scm oil 1.0 scm o.e and operation (PDO) has been approved by the 1000 scm gas 1.0 scm o.e authorities. Undiscovered resources are subdivided 1 tonne NGL 1.3 scm o.e into mapped resources (prospects) and unmapped resources (exploration models). Total resources and reserves were given earlier in tonnes of oil equivalents (toe). RESERVES Gas 1 cubic foot 1 000.00 Btu Reserves are defined in accordance with the 1 cubic metre 9 000.00 kcal Norwegian Petroleum Directorate's classification system, and include recoverable volumes of 1 cubic metre 35.30 cubic foot petroleum as specified in approved plans for fields in production or under development. Crude oil 1 scm 6.29 barrels Reserves may be regarded as the economically 1 scm 0.84 toe recoverable part of the petroleum in a field. A distinction is made between original and 1 tonne 7.48 barrels remaining recoverable reserves. 1 barrel 159.00 litres
Estimated resources and reserves change 1 barrel/day 48.80 tonnes/year from year to year as a result of new discoveries, 1 barrel/day 58.00 scm/year production, and adjustments to earlier estimates
Scm of Barrels MJ kWh TCE TOE natural gas of oil
1 MJ, megajoule 1 0.278 0.0000341 0.0000236 0.0281 0.000176
1 kWh, kilowat 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 equivalent 42 300 11 788 1.44 1 1 190 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
CONCEPTS AND CONVERSION FACTORS 11 Summary PETROLEUM RESOURCES OIL AND GAS PRODUCTION
Petroleum resources in the order of 9.6 bn scm Norwegian offshore petroleum production in 1999 oe have been discovered on the Norwegian totalled 227 scm oe, including 168.6 mill scm oe continental shelf (NCS).This figure includes an of oil (2.9 mill barrels per day), 45.4 mill scm oe expected adjustment of about one bn scm oe to of gas and 12.9 mill scm oe of NGL/condensate. the recovery levels from fields and discoveries. Oil and gas production was roughly on a par Of the total, 76 per cent has been proven in with 1998, while NGL/condensate sales rose by the North Sea, 20 per cent in the Norwegian Sea 19 per cent.The Balder, Gullfaks South, Jotun, and four per cent in the Barents Sea. Production Oseberg East.Visund and Asgard projects came on to 31 December 1998 totalled 2.7 bn scm oe. stream during 1999. At present rates of production, In addition, about 3.7 bn scm oe is expected to Norway's remaining discovered oil resources - be found through further exploration.This gives including improved recovery measures - will a total resource estimate of 13.2 bn scm oe. last for about 17 years. The equivalent figure At 31 December 1999, remaining reserves on for gas is roughly 93 years. the NCS totalled 1.5 bn scm of oil, 1.2 bn scm oe gas and 0.2 bn scm oe of NGL/condensate. PROCEEDS FROM OIL AND CAS SALES The net increment in remaining discovered petroleum resources from 1998 to 1999 was The estimated value of Norwegian petroleum about 90 mill scm oe. exports in 1999 was NOK 168 bn, or about 36 per cent of the country's total earnings from foreign sales. Petroleum production and pipeline transport EXPLORATION accounted for 14.6 per cent of Norway's gross Twenty-eight exploration wells, including 18 domestic product. wildcats and 10 for appraisal, were completed Net government revenues from taxes and royalties or temporarily abandoned on the NCS in 1999. on petroleum operations (excluding the state's Of these, 15 were in the North Sea and 13 in the direct financial interest - SDFI - in the petroleum Norwegian Sea. By 31 December 1999,967 business) is put at NOK 19.2 bn.Net revenues from exploration wells had been completed or tem- the SDFI amounted to NOK 26 bn. These two porarily abandoned off Norway, including 621 figures add up to about 10 per cent of overall wildcats and 346 for appraisal. Oil or gas were government revenues. Investment associated with discovered in five of the 18 wildcats in 1999. the SDFI came to roughly NOK 30 bn in 1999. Discoveries totalled some 45-60 mill scm of oil and 45-75 bn scm of gas.
DEVELOPMENT
Government approval was given in 1999 for the Tune, Borg and Sygna developments. Investment in exploration, field development and pipeline transport totalled about NOK 67 bn in 1998.
1 SUMMARY 13 A brief history
Noith Sc Norwegian Sea Barents Sea In the late 1950s, very few people believed that while licences for petroleum operations were the Norwegian continental shelf (NCS) might to be awarded by the government. conceal rich oil and gas deposits. However, the Exploration in the 1970s was confined to the area discovery of gas at Groningen in the Netherlands south of the 62nd parallel. A phased opening of the in 1959 caused geologists to revise their thinking continental shelf to exploration and restrictions on the petroleum potential of the North Sea. on the number of blocks awarded in each licensing In the autumn of 1962, the Phillips Petroleum round were used to maintain a moderate pace. oil company applied for permission to conduct Foreign companies dominated exploration off geological surveys off Norway and was soon Norway in the initial phase, and were responsible followed by others. for developing the country's first oil and gas fields. Norway's sovereignty over the NCS in respect While these multinational firms were also intended of exploration for and production of subsea to play an important long-term role, the goal of natural resources was proclaimed on 31 May 1963. building up a Norwegian oil community was A new statute determined that the state owns defined at an early stage. Statoil was created as any natural resources on the continental shelf, a state-owned oil company, and the principle of and that the Crown alone is authorised to award 50 per cent state participation in each production licences for exploration and production. In the licence was established.The Storting later decided same year, companies were granted permission to that the level of state participation could be higher carry out preparatory surveys and reconnaissance. or lower than 50 per cent, depending on circum- These reconnaissance licences entitled the holder stances. to perform seismic surveys, but not to drill. State participation in petroleum operations was Agreements on dividing the North Sea in reorganised on 1 January 1985. Statoil's interest accordance with the median line principle were in many licences was split into two components, reached by Norway with the UK in March 1965, one linked to the company's commercial parti- and with Denmark in December of the same year. cipation and the other becoming part of the state's The NCS south of Stad (62° N) - which is taken direct financial interest (SDFI) in petroleum as the northern limit of the North Sea - was divided operations. This arrangement means that part into 37 quadrants, each comprising 12 blocks of Statoil's gross revenue from each project goes covering 15 minutes of latitude and 20 minutes directly to the state, along with a corresponding of longitude. share of costs. Norway's first offshore licensing round was The North East Frigg gas field became the first announced on 13 April 1965, and 22 production development off Norway to cease production in licences covering a total of 78 blocks were awarded. May 1993. The first well was drilled off Norway in the summer Norwegian oil and gas production has increased of 1966. It proved to be dry. substantially over the past 10 years, and the country Key goals for Norwegian oil and gas policies ranks today as the world's second largest exporter since the early 1970s have been national manage- of crude oil after Saudi Arabia. Petroleum operations ment and control, building a Norwegian oil now play a substantial role in Norway's economy community and state participation.The Norwegian and contribute considerable revenues to the state. Storting (parliament), the government,the ministry and a new state agency - the Norwegian Petroleum NORTH SEA Directorate (NPD) - would be responsible for administering petroleum operations. Decisions The Balder field was discovered in 1967. Ekofisk on opening new areas lay with the Storting, was proven in December 1969, and it became 2 A BRIEF HISTORY 15 obvious in early 1970 that this was a large discovery feedstock for methanol production at Tjeld- Later that year, several interesting finds were made bergodden. in the same area. Development approvals were given for Nome Norwegian North Sea oil production began in and Njord in 1995, and for Asgard in 1996. 1971 when Ekofisk at the southern end of the Fourteen of the 18 production licences awarded sector came on stream. Its oil was loaded into in the 15th offshore licensing round in 1996 lie tankers on the field until the Norpipe oil line to in the Norwegian Sea. Two large discoveries were the UK was completed in 1975. The Norpipe made in these licences during 1997, confirming system's dry gas line from Ekofisk to Emden in that the area has great potential. One of these was Germany began operating in 1977, initiating Ormen Lange, which lies in production licences Norwegian natural gas exports to continental 208,209 and 250. Preliminary estimates from the Europe. NPD indicate that this field is the second-largest The Frigg field was discovered in May 1971 and gas discovery on the NCS, containing 330 million came on stream six years later. A dry gas export standard cubic metres of oil equivalent. pipeline was built to St Fergus in Britain. Discovered in 1974, Statfjord is shared between BARENTS SEA Norway and the UK. All three concrete gravity base structures on this giant field stand in the A total of 35 production licences have been Norwegian sector.The first of these platforms awarded in the Barents Sea since 1980, leading came on stream in November 1979. Statfjord to a number of minor and medium-sized gas represented Statoil's first major assignment as discoveries in these waters. operator. Various studies by the operators show that it In the autumn of 1986, the Sleipner East and is technically feasible to develop the gas fields Troll developments were approved by the Storting. in the Barents Sea. However, water depths, difficult Troll ranks as one of the world's biggest energy seabed conditions and the need for possible land- projects and illustrates that gas exports will become based terminals will call for heavy investment. increasingly important in overall Norwegian The development concepts evaluated so far production. have failed to provide a sufficient basis for com- mercial development in any of the licences awarded in the Barents Sea. NORWEGIAN SEA The first three production licences north of the 62nd parallel were awarded in 1980. In the following year, petroleum was found on the Halten Bank with the discovery of Midgard (now part of the Asgard field). A number of oil and gas accumulations have since been discovered. Draugen became the first field approved for development on the Halten Bank in the autumn of 1988, and came on stream in October 1993.The Storting approved construction of the Haltenpipe gas transport system from Heidrun to Tjeldbergodden in mid- Norway in February 1992. Heidrun came on stream in 1995, and associated gas from this field provides 16 2 A BRIEF HISTORY State organisation of petroleum operations Ministry of Petroleum and Energy Ministry of Local Government and Regional Development Noiwegian Petroleum Directorate State's diiect financial interest (SDH) Storting (parliament) Ministry of Finance Ministry of Petroleum Ministry of Local Government and Energy and Regional Development Norwegian Petroleum Directorate Figure 3.1 The state organisation of petroleum operations The Storting (parliament) determines the frame- response planning in the petroleum sector. work for petroleum operations in Norway. Major Provides the secretariat for the Petroleum Price development projects or issues of principle must Board, which deals with tax settlement prices. be considered and approved by the Storting. Authority has been delegated to the government Gas section to approve smaller development projects. Responsible for issues relating to development, Overall administrative responsibility for petro- operation and transport for gas fields as well leum operations on the NCS rests with the Ministry as marketing of natural gas. Also responsible of Petroleum and Energy (MPE). Its job is to ensure for coordinating allocation issues. that these operations are pursued in accordance with the guidelines laid down by the Storting. Exploration section Coordinates the preparation and implementation of exploration policies, such as the opening of new MINISTRY OF PETROLEUM AND ENERGY offshore areas and licence awards, and supervises The MPE is organised in three departments, exploration operations. covering oil and gas, energy and water resources, and administration, budgets and accounting Environmental affairs section respectively. Responsible for coordinating the department's Responsibility for petroleum operations rests work on environmental issues, including climate with the oil and gas department. questions. Also in charge of the MPE's work with international agreements on emissions to air. THE OIL AND GAS DEPARTMENT Industry section IS ORGANISED AS FOLLOWS: Deals with issues relating to the petroleum supplies Oil section industry. The section also handles the MPE's efforts Covers issues relating to development, operation to extend the internationalisation of Norway's oil and transport for oil fields as well as marketing and gas sector and questions related to research of oil and NGLs. Responsible for emergency and development. 3 STATE ORGANISATION OF PETROLEUM OPERATIONS 19 MINISTRY OF LOCAL GOVERNMENT Section for state participation AND REGIONAL DEVELOPMENT Responsible for exercising the owner's role in relation to Statoil and for supervising the state's This ministry has overall responsibility for the direct financial interest (SDFI) in the petroleum working environment in the petroleum sector, sector. as well as for emergency response and safety aspects of the industry. Economics section Carries out economic analyses of the petroleum NORWEGIAN PETROLEUM DIRECTORATE sector to support the preparation of government policies, including the department's work with The Storting resolved on 2 June 1972 to establish the petroleum tax system and the state's total a Norwegian Petroleum Directorate (NPD) in revenues from this sector. Stavanger. This agency is administratively sub- ordinate to the MPE. On issues relating to the Petroleum law and legal affairs section •working environment, safety and emergency Deals with all legal issues, such as preparing Bills response, however, the NPD reports to the Ministry and regulations and other legal frameworks. Also of Local Government and Regional Development. responsible for providing advice in all legal areas relevant to the MPE's work in the petroleum sector. Primary functions of the NPD are: • to exercise administrative and financial control to ensure that exploration for and production ENERGY AND WATER of petroleum are carried out in accordance RESOURCES DEPARTMENT with legislation, regulations, decisions, licensing This department is responsible for land-based terms and so forth energy generation, administration of watercourses • to ensure that exploration for and production and energy consumption. It covers such matters of petroleum are pursued at all times in accor as legislation governing watercourses, licensing dance with the guidelines laid down by the MPE and energy, commercial supervision of the state- • to advise the MPE on issues relating to owned Statnett SF and Statkraft SF power enter- exploration for and production of submarine prises, coordination of international energy co- natural resources. operation, and schemes for enhancing energy saving and efficiency Issues relating to energy and The NPD is headquartered in Stavanger, and has the environment also come under this department. a branch office in the north Norwegian port of Harstad. ADMINISTRATION, BUDGETS AND ACCOUNTING DEPARTMENT STATE'S DIRECT FINANCIAL INTEREST (SDFI) The MPE's administrative and common functions are handled by this department, including orga- The state's direct financial interest (SDFI) in the nisation and personnel administration as well petroleum sector was established in 1985, when the as the budget and financial administration of cash flow from most of Statoil's licence interests the MPE and its subordinate agencies. was split into a component remaining with the 20 3 STATE ORGANISATION OF PETROLEUM OPERATIONS Minister Political advisor State secretary Secretary general information section Adm, budgets and accounting Oil and gas department Energy and water department resources department Exploration Oil Gas industry Environmental Section Petroleum section section section section affairs section for state law and legal Economics affairs section section pation Figure 3.1 The organisation of petroleum operations STATOIL company and another going directly to the state. (DEN NORSKE STATS OLJESELSKAP A.S) Establishing the SDFI did not affect operational aspects. Statoil manages it and also sells all The Storting resolved on 2 June 1972 to establish petroleum accruing to the SDFI. a state-owned oil company. Statoil's objective is, The SDFI secured an interest in all new licences either by itself or through participation in or awarded from 1985 to the 14th licensing round in together with other companies, to carry out 1993. It received interests in 16 of the 18 licences exploration, production, transport, refining awarded under the 15th licensing round in 1996. and marketing of petroleum and petroleum- In future licensing rounds, the SDFI's interest derived products, as well as other business. will be determined on a case-by-case basis. Wholly state-owned, the company operates See chapter 5 for more information on the SDFI. on a commercial basis. 3 STATE ORGANISATION OF PETROLEUM OPERATIONS 21 Petroleum operations in the Norwegian economy Investment Othet key figures I I „ 80 I- Exploratio Onshore ~ 30 I Fields in production and under i 20 development, pipelines/onshor 1993 1995 '997 1999* Figure 4.1 Accrued investment 1985-1999 Figure 4.2 Estimates for future investments (Source: Statistics Norway) 'estimate in fields and pipelines 1999-2010 (Source-. MPE/NPD) OTHER KEY FIGURES Petroleum production and pipeline transport create substantial revenues for licensees and the Figures in tables 4.1 and 4.2 are taken from the state. At the same time, development and operation national accounts or other publicly-available consume considerable resources. statistics, and are based on the definitions applied This chapter presents an overview of resources by Statistics Norway. utilised and value added in production and pipe- The figures exclude value creation and resource line transport. utilisation in drilling and exploration, the supplies industry, refining and petrochemicals. INVESTMENT Gross product Figure 4.1 shows annual investment in the petro- Gross product is an expression for value creation leum sector from 1985 to 1999. In 1985-90, this in a sector during a year, and equals the value of spending totalled about NOK 30 bn per year. gross production less the value of commodities It has since increased substantially and reached employed for production. The gross domestic particularly high levels in 1993 and in 1997-99. product (GDP) sums the gross product of all sectors. These peaks reflect both heavy investment in new fields and spending on gas pipelines to Export value continental Europe. This figure is calculated at the Norwegian border. The following major fields off Norway were The value of gas exports is calculated at the under development at 31 December 1999: boundary of Norway's continental shelf. Oil exports Oseberg East, Oseberg South, Huldra, Gullfaks are valued at the loading buoy for shuttle tankers satellites phase Il.Snorre II,Troll Il.Sleipner East, and at the continental shelf boundary for pipeline Asgard.Tune and Sygna. transport. The export value of pipeline services is Construction of the Oseberg Gas Transport and the transport value in Norwegian-owned pipelines Asgard Transport pipelines, and the Asgard gas from Norway's continental shelf to foreign treatment facilities at Karst0 north of Stavanger, terminals. was also under way. Figure 4.2 shows future annual investment in Accrued investment the petroleum sector. Low oil prices in 1998 and Total accrued investment represents overall capital for part of 1999 have increased uncertainty over spending on production and pipeline transport, future investment levels. However, spending is and includes exploration costs and investment expected to be lower in the time to come than on land directly related to petroleum operations. in recent years. Norwegian petroleum operations account for As oil and gas fields are depleted and production a substantial proportion of overall investment ceases, spending will be needed on abandonment in the country. Capital spending by this sector or alternative use of installations. represented about 30 per cent of the total for 4 PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY 23 Table 4.1 Key economic figures for the petroleum sector, NOK bn (money of the day) (Source: Statistics Norway) 1991 1992 1993 1994 1995 1996 1997 1998 1999' Gross product 100.4 101.3 108.5 108.8 114.0 163.9 172.6 122.3 173.2 Export value 98.3 98.7 105.7 108.5 115.4 160.1 167.7 123.2 167.6 Accrued investment 43.0 49.6 57.5 54.6 48.1 47.5 61.9 78.7 67.0 Employment (thousands) 16.5 16.8 17.6 17.9 17.9 18.0 16.2 16.8 16.1 1) Estimate Table 4.2 Petroleum operations in the Norwegian economy (Source: Statistics Norway) 1991 1992 1993 1994 1995 1996 1997 1998 19991 Share of gross product 13.2 12.9 13.2 12.9 12.3 16.1 15.7 11.1 14.6 Share of export value 31.9 32.9 33.5 32.4 32.5 38.8 37.5 29.8 36.3 Share of total employment 0.8 0.8 0.9 0.8 0.8 0.9 0.8 0.7 0.7 1) Estimate mainland Norway in 1984-90. This proportion NOK 1 880 bn in 2000 money at 1 January 2000, was substantially higher in the early 1990s, and with NOK 1 710 bn representing the state's share. came to about 65 per cent in 1993. A discount rate of four per cent has been applied The big increase reflects not only heavier in the calculation. investment by the petroleum industry but also Considerable uncertainty attaches to such lower spending in other sectors. calculations, which utilise estimates for future Investment in mainland Norway has increased prices, exchange rates, inflation rates, production over recent years. Estimates for 1999 indicate that profiles and resources. Choice of discount rate petroleum-related investment represented 35 will also influence the outcome. per cent of the mainland figure. Government Petroleum Fund Employment Established by an Act of 1990, the Government The direct employment effect of crude oil/natural Petroleum Fund received its first transfers in 1996 gas production and pipeline transport is relatively for fiscal 1995. small, accounting for less than one per cent of Its income represents the central government's total jobs in Norway. When indirect effects are net cash flow from petroleum activities, as well included, the impact is higher than table 4.1 as the return on fund investments. Expenditures indicates. See also chapter 6 on mainland activities comprise an annual transfer to the Ministry of and petroleum research. Finance corresponding to the amount of petroleum revenues applied in the fiscal budget to cover Total wealth in the petroleum sector the non-oil deficit. Total wealth in the petroleum sector is calculated Capital in the fund acts as a buffer which as the net present value of estimated future cash provides greater room for manoeuvre in economic flow from this industry. The 1999 revised national policy should oil prices or activity in the mainland planning budget puts the figure at roughly economy decline, and serves as an instrument for 24 4 PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY coping with the financial challenges presented by an ageing population and declining oil revenues. At 31 December 1999, the fund had accumulated NOK 222.4 billion.This corresponds to 18.7 per cent of gross domestic product.The value of the fund increased by NOK 50.6 billion during 1999. 4 PETROLEUM OPERATIONS IN THE NORWEGIAN ECONOMY 25 State revenues fax and royalty system SDFI f State revenues | Shareoftotaln ig?8 1981 1984 19S7 1990 199B 1996 !999* Figure 5.1 State revenues from petroleum operations 1977-1999 (Source: National accounts and state budget) 'Estimates Securing high and stable government revenues on production from fields approved for develop- from petroleum operations is an important ment before 1 January 1986, and constitutes eight objective of Norwegian policies for this sector. to 16 per cent of gross production value. No royalty The most important instruments for generating is charged on gas production. such revenues, both immediately and in the All production licences must pay the area fee long term, are the tax and royalty system and after the exploration period has expired.The annual the state's direct financial interest (SDFI) in the fee for most licences increases from NOK 7 000 petroleum sector, as well as dividends from and to a maximum of NOK 70 000 per square kilometre the rise in the asset value of the state's holdings over the subsequent decade. Special rules apply in Statoil and Norsk Hydro. for the oldest licences, and for licences in the Figure 5.1 shows state revenues (taxes, royalty, Barents Sea. Carbon tax is levied at a rate per scm net SDFI cash flow and Statoil dividend) from of gas burnt or directly released and per litre of petroleum operations in 1977-99. oil burnt.The rate for 2000 is NOK 0.70. TAX AND ROYALTY SYSTEM SDFI Petroleum taxation builds on the Norwegian rules The state's direct financial interest (SDFI) in for ordinary corporation tax, which is charged petroleum operations was established in 1985 at 28 per cent both on land and offshore. Owing by dividing Statoil's holding in most Norwegian to the extraordinary profitability (rent) of petro- offshore licences into an equity share for the leum production, a special tax of 50 per cent is company and a direct interest for the state. An also levied on this industry. SDFI interest is incorporated in most licences When calculating taxable income for both awarded after 1985. As a result, the state now ordinary and special tax, investment is subject to has a direct interest in most offshore petroleum linear depreciation over six years from the date it fields and transport systems. was made. Companies can also deduct the pro- Under the SDFI arrangement, the state pays portion of their net financial costs that corresponds a share of all investment and operating costs in to the share of their commercial income derived a project corresponding to its direct interest. from offshore operations.An uplift of five per cent It also receives a corresponding proportion of of investment is deductible from the income base production and other revenues on the same terms for determining special tax over a six-year period as other licensees. Statoil is responsible for ope- from the date of the investment. rative and financial management of the SDFI. The most important duties levied on petroleum Table 5.2 shows net cash flow and investment operations are royalty on oil production, the area for the SDFI.A one-off settlement of NOK 9 082 mill fee and the carbon dioxide tax. Royalty is payable in 1985 money between the SDFI and Statoil is 5 STATE REVENUES 27 Table 5.1 Paid taxes and fees, NOK bn (2000 value) (Source: National accounts and state budget) Carbon Corporate tax Special tax Royalty Area fee dioxide tax Total 1979 7.0 3.1 3.3 0.1 0.0 13.5 1980 17.9 8.9 6.6 0.1 0.0 33.4 1981 22.7 13.3 8.7 0.1 0.0 44.9 1982 23.3 14.0 8.9 0.1 0.0 46.3 1983 20.6 12.9 11.1 0.1 0.0 44.7 1984 24.9 15.1 13.2 0.1 0.0 53.3 1985 28.0 16.7 14.9 0.3 0.0 60.0 1986 22.6 13.1 10.7 0.3 0.0 46.6 1987 8.7 3.9 9.2 0.3 0.0 22.1 1988 6.0 1.3 6.4 0.2 0.0 13.9 1989 5.3 1.7 8.0 0.2 0.0 15.2 1990 13.4 5.4 9.2 0.3 0.0 28.2 1991 16.3 7.3 9.7 0.6 0.9 34.8 1992 8.3 7.9 8.9 0.7 2.1 27.9 1993 6.9 10.2 8.4 0.6 2.4 28.6 1994 6.6 9.5 7.0 0.1 2.7 25.8 1995 8.2 11.3 6.2 0.6 2.7 28.9 1996 10.3 13.3 6.5 1.2 2.9 34.2 1997 15.8 19.9 6.3 0.6 3.1 45.8 1998 9.1 11.0 3.8 0.5 3.2 27.7 1999 5.7 6.4 3.1 0.6 3.4 19.2 Table 5.2 Key figures for the SDFI, NOK bn (2000 value) (Source: National accounts and state budget) Of which Net Net Cash in Cash out investments cash flow cash flow NOK mill NOK mill NOK mill NOK mill NOK mill (2000) 1985 0.0 17.4 16.7 (17.4) (22.4) 1986 0.5 12.5 11.1 (12.0) (15.6) 1987 3.7 14.4 11.7 (10.7) (13.1) 1988 5.3 14.5 10.0 (9.1) (10.7) 1989 15.5 14.8 8.8 0.8 0.8 1990 22.0 14.7 8.5 7.3 7.9 1991 27.2 21.3 12.3 5.9 6.4 1992 31.5 27.9 15.1 3.6 4.0 1993 37.2 37.1 23.9 0.2 0.2 1994 39.1 39.1 26.5 0.0 0.0 1995 42.9 33.7 21.2 9.2 9.6 1996 67.6 32.6 16.8 35.0 36.1 1997 77.2 36.7 20.3 40.4 41.2 1998 60.4 45.9 27.3 14.6 14.6 1999 75.2 49.3 30.0 25.8 26.0 28 5 STATE REVENUES included in investment and deducted from cash flow. The SDFI gives the state an extensive involve- ment in petroleum operations. It accounted for roughly 40 per cent of all capital spending on the continental shelf in 1999. 5 STATE REVENUES 29 Mainland operations, technology and petroleum research Offshore supplies industry Employment effects Petroleum research international market.The country's oil companies OFFSHORE SUPPLIES INDUSTRY and suppliers work today in every part of the world. The oil and gas business generates a substantial In order to create a stronger base for international demand for goods and services related to explo- operations by Norwegian suppliers, the MPE has ration, drilling, development and petroleum pro- joined forces with the oil sector to establish the duction. This demand has direct effects on petroleum- Intsok foundation.This body aims to strengthen related industry, and also creates substantial the international position and competitiveness spin-offs for other Norwegian industrial sectors. of Norway's petroleum industry through a binding When oil and gas were discovered on Norway's network-based collaboration between its members. continental shelf, petroleum policy was directed These total about 60, and include both oil at creating a Norwegian oil industry. In addition companies and suppliers. Human rights and the to oil companies, it was important to build up responsibilities and requirements of companies in a domestic offshore supplies sector. relation to such issues are also on the Intsok agenda. Maritime traditions in Norwegian industry could be extended and enhanced with the aid of expertise EMPLOYMENT EFFECTS transferred from international oil companies and suppliers to domestic companies. In line with In cooperation with the county employment offices, the development of its continental shelf, Norway the Directorate of Labour compiles annual statistics has built up competent suppliers in all phases for employment in the petroleum sector. These of the petroleum business. During recent years, surveys have been conducted annually since 1973, Norwegian companies have accounted for well and the latest was carried out in August 1999. over half the overall deliveries to the country's Results from the past six years, grouped by four operations in this sector. functional areas, are presented in table 6.1. Building a competitive Norwegian petroleum Petroleum-related operations account for roughly industry means that a growing number of com four per cent of total employment in Norway. panies from Norway are winning contracts in the The number of people employed rose substantially Table 6.1 Employment by functional areas Group 1994 1995 1996 1997 1998 1999 Exploration, drilling and production, etc 26 170 25 678 25 469 27 861 30 280 30 050 Bases, logistics, catering, administration, etc 10 635 10 635 11 522 12 590 13 485 14 195 Construction and maintenance of platforms and vessels 32 953 29 693 30 160 34 005 42 585 41 017 Construction and operation of processing and landing facilities 4 277 6 522 6 020 5 161 5 164 5 072 Total 74 035 72 528 73 171 79 617 91 514 90 334 (Source: Directorate of Labour) 6 MAINLAND OPERATIONS AND PETROLEUM RESEARCH 31 Competitive position of Norway's offshore sector Meeting the USD 8-10 challenge Policy terms - 20% input base j Work processes - 30% Technology - 50 % in recent years, but the decline in oil prices during offshore sector is shown by the figure below. 1998 and early 1999 reduced the number of As a consequence, the Demo 2000 project- development projects and employment in the oriented technology development programme industry. A total of 90 334 people were employed was established as a broad-based collaboration in Norway's petroleum-related industry in August between international and Norwegian oil 1999, a contraction of 2.5 per cent from the record companies, the supplies industry and research figure set in 1998. The worst-hit sector was con- institutions. The focus is on maturing effective struction and maintenance of fixed and mobile technologies and field developments more rapidly units, where the decline in jobs came to six per on the NCS, and on developing technology and cent.This category covers the bulk of the supplies products suitable for international markets. See industry including fabrication yards and engineering the figure below. companies.The drop in employment was parti- This programme was initiated through an cularly large in the engineering companies, which appropriation of NOK 100 million in the revised saw their overall workforce contract by 1 520 national budget for 1999.A further NOK 100 million people - 15 per cent - to 8 700. has been appropriated over the central govern- Of the 90 334 people employed in Norway's ment budget for 2000. petroleum sector, 18 900 or 21 per cent work in With the wide interest aroused by the Demo 2000 oil companies while the rest are employed by collaboration, the contours of a far-reaching boost the supplies industry. Among suppliers, manu- to Norwegian offshore technology can now be facturing and construction companies account perceived.The NOK 100 million appropriated in for the largest number of jobs at 33 900, followed 1999 as phase I has prompted the submission of by engineering at 8 700 and service firms at 7 100. 211 applications totalling almost NOK 1 billion. These are spread across roughly 20 pilot projects in which oil companies and the supplies industry TECHNOLOGY AND PETROLEUM RESEARCH are heavily involved together with the research The Demo 2000 commitment to project- institutions concerned in financing and testing. related technology development All told, the 1999 appropriation is set to generate The government reviewed possible measures for almost NOK 400 million in funds for qualifying improving the competitiveness of Norway's offshore more cost-effective technologies when the commit- sector in Report no 37 of 1998-99. In that context, ment of resources by government and industry the Norwegian petroleum sector identified tech- is viewed as a whole. With the additional NOK nology as the most important single factor for, 100 million appropriated for 2000 as phase II, and the most purposeful approach to, reducing Demo 2000 could prompt pilot projects worth costs and thereby enhancing the industry's profit- NOK 600-800 million. ability and competitiveness. The significance of The timetable for implementing phases I and II, technology as the fundamental input for strengthe- together with pilot projects in phase I, is shown ning the international competitiveness of Norway's in the figure below. 32 6 MAINLAND OPERATIONS AND PETROLEUM RESEARCH Principal elements in Demo 2000 Collaboration on project-related technology development The programme will Projects will: Sackground, activities and resuils: contribute to: Goal for • demonstrate new'einn.dojjy whicii can !ay • d-riiard for improved • long-term competitive- the basis for new profitable r-JCS dev^op.-nenh rirofirabiiily Principal programme ness in tl>e oil sector • fc:c-.J> on sprcifi:. iVIdj wK're pi:o:s can ice run • need :'or new teennc/orjy r elements and projects - continued profitable • bring foivva.'d C|j.ili[ic.i:io i of new • p::ot demonstrations development of NCS technology • nc-w oeve!oprnents resources • fresh exi;n;r opportunities Petroleum research The Petropol programme is more oriented Partly as a result of lasting cuts in government towards the social sciences and focuses on the funding for petroleum research, the user- following areas: administered part of this R&D effort has been 1. Internationalisation and international challenges concentrated more selectively within the frame- 2. Petroleum and politics - adjusting political work of the Offshore 2010 programme established institutions and processes by the Research Council of Norway. 3. Change and innovation in the petroleum sector Replacing the earlier Reserve and Utbygg and the petro-industrial complex programmes, this programme aims to stimulate 4. Norway as a gas nation - natural gas, gas-fired high-risk research into technology for processing power and gas as an industrial raw material. and separating emissions near their source (the reservoir). This programme seeks Much of the inno- in particular to identify Public funding 1999 (phase 1) vative technological and 2000 (phase II): NOK 200 mill the interaction between progress by the petro- Phase social, historical, tech- 1999 2001 <2OO2 2003 NOK 100 mill, 2000 leum sector takes public funds nological and industrial Annou iced place in small and factors and interests. Suppliers medium-sized centres One aim is to offer Demo projects of expertise. Oil relevant knowledge Effective R&D in 1 of key issues to the i' these centres will Extended, Norwegian authorities, national budget 2000 accordingly be impor- Dem projects oil companies, industry tant for technological organisations and Irr plementation advances in the sector unions. jlementa ion and for preserving In addition, environ- Norwegian teams with mental research relevant leading-edge expertise. to the oil and gas Offshore 2010 provides a potential for demon- business receives public funds through the Research stration projects relating to Demo 2000, and co- Council of Norway. operation within project-related technology The Klimatek programme finances R&D - development could prove an important driving including the implementation of demonstration force in commercialising technology and ideas projects - related to reducing greenhouse gas among the sub-contractors which support the oil emissions. and gas industry And the Forurensning programme aims to Closer links are accordingly being forged provide new knowledge on and maintain nation- between Offshore 2000 and Demo 2000 to realise al expertise about various types of polluting these synergies. emission. 6 MAINLAND OPERATIONS AND PETROLEUM RESEARCH 33 Petroleum resources Discovered and undiscovered resources on the mented by the future potential for improved oil NCS are put at roughly 13.2 bn scm oe (with an recovery, put at about one bn scm oe.This has not uncertainty range from 10.7-16 bn scm oe). been broken down by region. Discoveries totalled 8.6 bn scm oe at 31 December Undiscovered petroleum resources on the NCS 1999. Improvements to the recovery factor for are put at about 3.7 bn scm oe.with an uncertainty fields and discoveries are expected to add another range of 1.0-8.9 bn scm oe. Thirty-two per cent one bn scm oe, bringing total estimated recover- of this total is thought to lie in the North Sea, able resources in fields and discoveries to 9.6 bn 41 per cent in the Norwegian Sea and 27 per cent scm oe. in the Barents Sea. A total of 7.3 bn scm oe has been found in Cumulative output since petroleum production the North Sea. Resources in fields approved for began off Norway in 1971 comes to 2.7 bn scm oe, development amount to 4.9 bn scm oe.with or about 21 per cent of total expected recoverable remaining reserves amounting to 2.3 bn scm oe. resources. Of producing fields at 31 December Of this, about 50 per cent is oil. 1999,41 were in the North Sea and only five in the The Norwegian Sea has so far yielded 1.9 bn Norwegian Sea. scm oe, with remaining reserves totalling 0.7 bn Remaining discovered resources declined by scm oe. About 50 per cent of this is oil. a total of 34 mill scm oe in 1999. Gas resources Discoveries in the Barents Sea total 0.3 bn scm increased by 83 bn scm, while oil resources were oe. None of these resources have been produced. reduced by 123 mill scm. Table 7.1 presents remaining resources and Overall production in 1999 amounted to 227 mill reserves on the NCS.These figures are supple- scm oe. Five discoveries were made during the year, Table 7.1 Discovered and remaining resources on the Norwegian continental shelf (Source: Norwegian Petroleum Directorate) Oil Gas Condensate NGLs Total oe mill scm bnscm scm mill tonnes mill scm Remaining discovered resources 1638 2 176 102 72 4 009 Of which reserves 1 162 982 43 46 2 247 Remaining discovered resources 406 884 190 59 1 558 Norwegian Sea Of which reserves 340 231 49 30 659 Remaining discovered resources 28 235 19 6 289 Of which reserves 0 0 0 0 0 Remaining discovered resources 2 072 3 296 311 137 5 856 Of which reserves 1502 1 214 92 76 2 906 Table 7.2 Change in remaining discovered resources (Source:Norwegian Petroleum Directorate) Oil Gas Total oe mill scm bn scm mill scm New discoveries 42 57 99 Adjustments to discoveries and fields (including fields shut in) 17 73 90 Production (182) (45) (227) Change for 1999 (123) 85 (38) 7 PETROLEUM RESOURCES 35 with total resources in the order of 42 mill scm recovery technology came to 90 mill scm oe. of oil and 57 bn scm of gas. Upgraded estimates These changes are shown in table 7.2. Figure 7.1 for existing fields and discoveries as a result presents the distribution of produced and re- of better reservoir understanding or improved maining reserves on the NCS. | J Undiscovered resources [ | Possible measures | j Resources in discoveries Q Resources in fields [j Remaining reserves Produced reserves 27% 21% 14% Gas Total resources NCS: 13 238 mill oe -2 Oil -3 Figure 7.1 Total resource estimate (Source: Norwegian Petroleum Directorate) 36 7 PETROLEUM RESOURCES Production Forecast production ''' / '' ' : * ' .•••••?; .!';: •". '•' • -1 Table 8.1 Fields in production at 1 January 1999 (Source: Norwegian Petroleum Directorate) Originally present Remaining at 31 3ec1999 Oil Gas NGLs Condensate oe Oil Gas NGLs Condensate oe mill scm bn scm mill tonne > mill scm mill scm Mill scm bn scm mill tonne miil scm mill scm Balder 26.7 0.0 0.0 0.0 26.7 25.7 0.0 0.0 0.0 25.7 Borg 12.6 1.6 0.4 0.0 14.7 Debited Tordis Brage 4) 46.7 2.6 0.7 0.0 50.2 12.5 1.1 0.2 (0.1) 13.8 Draugen 111.6 0.0 0.0 0.0 111.6 58.4 0.0 0.0 0.0 58.4 Ekofisk 417.1 142.2 13.3 0.0 576.6 155.4 29.9 3.6 0.0 189.9 Eldfisk 109.1 50.7 4.2 0.0 165.2 43.3 19.7 1.1 0.0 64.3 Embla 14.5 7.2 0.7 0.0 22.5 8.2 5.0 0.4 0.0 13.8 Frigg 0.0 119.8 0.0 0.5 120.2 0.0 7.3 0.0 0.0 7.2 Fr0y 5.5 1.6 0.0 0.1 7.2 0.2 0.4 0.0 0.0 0.6 Gullfaks 4) 314.8 21.2 2.0 0.0 338.6 54.8 3.5 0.7 (0.6) 58.7 Gullfaks South 32.8 61.2 0.0 0.0 94.0 32.0 61.2 0.0 0.0 93.2 Gullfaks West 3.6 0.4 0.0 0.0 4.0 1.4 0.4 0.0 0.0 1.8 Gullveig 2.7 2.0 0.0 0.0 4.8 2.3 2.0 0.0 0.0 4.4 Gungne 2) 0.0 8.4 1.0 3.0 12.6 Debited Sleipner 2) Gyda 4) 30.7 3.8 1.5 0.0 36.4 2.7 (0.9) (0.1) 0.0 1.7 Gyda South 3) 5.6 3.7 0.7 0.0 10.2 Debited Gyda 3) Heidrun 183.8 19.9 0.1 0.0 203.9 132.9 18.3 0.1 0.0 151.4 Heimdal 6.9 44.6 0.0 0.0 51.5 0.8 2.2 0.0 0.0 2.9 Hod 8.2 1.5 0.2 0.0 10.0 1.8 0.3 0.0 0.0 2.1 Huldra 1) 0.0 18.7 0.3 7.4 26.4 0.0 18.7 0.3 7.4 26.4 Jotun 31.1 1.0 0.0 0.0 32.1 30.2 1.0 0.0 0.0 31.2 Loke 2) 0.0 3.5 0.5 1.2 5.4 Debited Sleipner 2) Murchison 13.6 0.4 0.4 0.0 14.5 0.8 0.1 0.0 0.0 1.0 Njord 28.4 0.0 0.0 0.0 28.4 22.8 0.0 0.0 0.0 22.8 Nome 80.4 15.0 1.4 0.0 97.3 65.4 15.0 1.4 0.0 82.2 Oseberg 337.0 34.0 0.0 8.0 379.0 71.5 34.0 0.0 8.0 113.0 Oseberg South 1] 53.5 11.4 0.0 0.0 64.9 53.5 11.4 0.0 0.0 64.9 Oseberg West 1.6 6.0 0.0 0.0 7.6 0.5 6.0 0.0 0.0 6.5 Oseberg East 22.8 0.8 0.0 0.0 23.6 21.9 0.8 0.0 0.0 22.7 Rimfaks 5) 19.5 (2.3) 0.0 0.0 17.2 18.4 (2.3) 0.0 0.0 16.1 Sleipner West 2) 0.0 125.5 8.5 27.0 163.6 0.0 97.1 6.9 19.6 125.7 Sleipner East 2) 4] 0.0 50.3 11.0 25.1 89.7 0.0 26.4 3.5 6.5 37.5 Snorre 4) 225.3 9.2 6.0 0.0 242.3 153.8 5.9 4.0 (0.4) 164.6 Statfjord 4) 569.5 56.4 13.9 0.0 644.0 72.5 14.6 4.3 (2.6) 90.1 Statfjord North 4) 41.6 3.1 0.7 0.0 45.6 25.4 2.2 0.5 (0.1) 28.1 Statfjord East 4) 35.7 5.1 1.0 0.0 42.0 16.3 3.9 0.7 (0.1) 21.0 Sygna 1) 9.3 0.6 0.0 0.0 9.8 9.3 0.6 0.0 0.0 9.8 Tor 27.2 11.6 1.2 0.0 40.4 6.4 1.1 0.1 0.0 7.6 Tordis 4) 29.9 3.1 0.7 0.0 33.9 7.2 1.3 0.2 (0.1) 8.7 8 PRODUCTION 39 1 Oil/NGU mill scm oe 0 ISO - Oil/NGLsmill barrelsoe/da 1 100 Figure 8.1 Total petroleum production 1981-1999 Figure 8.2 Oil production (incl NGLs) 1981-1999 (Source: Norwegian Petroleum Directorate) (Source.- Norwegian Petroleum Directorate) Tordis East 5.2 0.5 0.1 0.0 5.9 Debited Tordis Troll 1 0.0 653.3 12.7 669.8 0.0 0.0 588.1 12.7 0.0 600.8 Troll II 195.0 0.0 0.0 0.0 195.0 136.5 0.0 0.0 0.0 136.5 Tunel) 0.0 24.0 0.1 6.1 30.2 0.0 24.0 0.1 6.1 30.2 Ula 70.0 3.7 2.5 0.0 77.0 10.2 0.0 0.2 0.0 10.4 Valhall 132.3 31.2 4.5 0.0 169.4 70.5 18.8 2.3 0.0 92.3 Varg 4.4 0.0 0.0 0.0 4.4 2.7 0.0 0.0 0.0 2.7 Veslefrikk 4) 54.5 9.6 1.3 0.0 65.8 18.7 7.9 0.3 (0.1) 26.8 Vigdis 33.3 2.3 0.0 0.0 35.7 21.9 2.3 0.0 0.0 24.2 Visund 48.5 0.0 0.0 0.0 48.5 47.9 0.0 0.0 0.0 47.9 Yme 9.3 0.0 0.0 0.0 9.3 2.7 0.0 0.0 0.0 2.7 Asgard 64.6 198.1 28.0 49.0 348.1 60.7 198.1 28.0 49.0 344.2 Total 3476.5 1725.8 118.2 123.5 5479.4 1479.8 1067.0 61.9 63.3 2690.5 Footnotes table 8.1: 1. Fields with an approved development plan at 31 December 1999 which are not yet in production. 2. Gas production from the Sleipner area is measured collectively. All production from this area is deducted from Sleipner East reserves. 3. Production from Gyda and Gyda South is measured collectively. All production is deducted from Gyda reserves. 4. Small negative figures for remaining resources arise for accounting reasons, and reflect discrepancies between estimates for original recoverable resources and exact production figures. Petroleum production from the NCS in 1999 a rise from 1998, when overall petroleum totalled roughly 226.9 mill scm oe.Oil accounted production came to 222.5 mill scm oe. Gas and for 168.9 mill scm oe (2.9 mill b/d) of this figure, NGL/condensate production accounted for the gas for 45.4 mill scm oe and NGLs (including virtually all the increase, while oil output remained condensate) for 12.9 mill scm oe.This represented relatively stable. Table 8.2 Production of oil/NGLs and sales of gas, mill scm oe (Source: Norwegian Petroleum Directorate) 1971-1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Total Oil/NGLs 676.5 111.8 127.4 136.1 153.5 165.0 184.7 186.2 178.6 181.5 2101.3 Gas 322.4 25.1 25.7 24.7 26.8 27.6 38.1 42.3 43.0 45.4 621.1 Total 998.9 136.9 153.1 160.8 180.3 192.6 222.8 228.5 221.6 226.9 2722.4 40 PRODUCTION Figure 8.3 Production forecast for petroleum 1999-2010 (Source: Norwegian Petroleum Directorate) FORECAST PRODUCTION 3.4 mill b/d in 2001 and 2002, and should there Figure 8.2 shows historical production of crude after fall back towards the present level by 2005. oil from the NCS. After a long period of continuous These production forecasts involve considerable growth, the development in output has been weak uncertainties, such as the time when different since 1996. fields go off plateau, how fast their output might Forecast petroleum production from the NCS decline and when fields now under consideration is shown in figure 8.3, broken down by oil, NGLs will come on stream. and gas.The figure shows that the share of gas in Other sources of uncertainty include the overall output is expected to increase substantially, development of new technology and the recovery from roughly 21 per cent today to about 34 per factor for each field. cent in 2007. In the longer term, the number and size of new Figure 8.4 shows expected production of crude discoveries and industry profitability are also likely oil from the NCS within an uncertainty range. to influence the level of production. Norway's output is set to average about 3.2 mill Annual Norwegian gas sales have lain around b/d of crude during 2000, including an official 40-50 bn scm oe in recent years. Under existing regulation of production by 200 000 b/d for the contracts, however, they are due almost to double first three months. over the next decade. For planning purposes, annual The latter represents an element in the long- gas sales are put at about 85 bn scm from 2007-08. term management of the country's petroleum Figure 8.5 shows contractual delivery commit- resources and tax revenues, and of the petro- ments for Norwegian natural gas, split between leum sector's impact on the economy. field and delivery contracts based on existing Crude oil output is expected to rise to about agreements. H Field contracts L Delivery Figure 8.4 Forecast for Norwegian oil production, 1999-2010 Figure 8.5 Delivery obligations for natural gas (Source: Norwegian Petroleum Directorate) from the NCS (Source: MPE) PRODUCTION 41 Market status for Norwegian petroleum products Norm price Norwegian crude on the world market Sale of natural gas liquids (NGLs) Dry gas s.iles Refining Retail sales Petrochemicals 1975 1979 '983 1987 '99' '995 '999 Figure 9.1 Price of Norwegian crude 0111975-1999 (Source: MPE) A governing principle of Norwegian policies on The norm price must correspond to the price at petroleum sales is that these will be made by which petroleum could have been traded between commercial companies on the basis of commercial independent parties in a free market. "Independent criteria within a general framework determined parties" are defined as buyers and sellers with no by the authorities. This means that producers on common interests which might influence the price the NCS sell crude oil on market terms. agreed. The norm price is fixed on a discretionary basis after an overall evaluation of market conditions, taking several types of transactions, reference NORM PRICE markets and methods of evaluation into account. The Act of 13 June 1975 on taxation of subsea Norway's norm price regulations are framed to petroleum deposits (the Petroleum Taxation Act) cover all types of petroleum produced on the NCS. provides the legal basis for an administrative For natural gas, contractual prices provide the basis determination of petroleum prices - the norm of calculating liability to tax and royalty because gas price - for the purpose of calculating tax and - unlike crude oil - is sold under long-term contracts. royalty payments. Figure 9.1 shows the trend in The Petroleum Price Board has not set any prices for Norwegian crude since 1975 in terms norm prices so far for NGLs (ethane, propane, of the average norm price. butanes and condensate).When no norm price Authorisation to determine such norm prices is fixed, prices actually obtained provide the basis for calculating royalty is provided by section 4-9, for calculating tax liability. subsection 6 of the Continental Shelf Act.The norm price regulations of 25 June 1976, with NORWEGIAN CRUDE subsequent amendments, specify guidelines for ON THE WORLD MARKET determining these prices, and are framed to have general validity for these three areas of application. Daily Norwegian offshore production averaged For tax purposes, the norm price is applied to all 2.9 mill barrels of crude oil (excluding NGLs) in petroleum transactions, whether traded between 1999, and Norway ranked seventh among the independent parties or transferred internally. world's leading oil producers. Crude output was Authority to set provisional and final norm more or less unchanged from 1998. prices - and to decide whether such prices should Since Norway consumes about 200 000 barrels not be determined for specified production areas of petroleum products per day, its net exports of - has been delegated to the Petroleum Price Board. crude oil and petroleum products (including NGLs) The latter fixes norm prices in arrears - normally totalled about 2.9 mill barrels a day. This puts for each quarter, but for a shorter period when Norway in third place after Saudi Arabia and this is considered desirable. In recent years, with countries in the former Soviet Union (FSU) frequent oil price changes, the board has largely among the world's leading net crude exporters. fixed monthly norm prices for crude oil. Figure 9.3 shows shipments of Norwegian crude 9 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 43 udi Arabia 8.4 Arabia 7.2 USA 8.2 FSU i i FSU 7.3 Morway 29 Iran 3.6 e/uela 25 Mexico 3.4 Iran 23 China 3.2 UAE 22 Norway 3.1 Iraq 21 Venezuela 3.0 Nigerra 19 UK . 2.9 Kuwait 19 UAE 2.6 Mexico " '1.3 Figure 9.2 Production and net export of crude oil, inc! NGLs 1999 (Source: Petroleum Economics limited) Table 9.1 Norwegian crude oils marketed as different blends Norwegian Crudes included in Shipped from Estimate for 2000, crude blends the various blends 1 000 b/d Ekofisk Ekofisk Terminal (Teesside) 485 Embla Gyda Hod Eldfisk Tor Valhall Ula Statfjord Blend Statfjord Buoy/via Mongstad 496 Snorre Statfjord East Statfjord North Sygna Oseberg Blend Oseberg, incl Oseberg West Terminal (Sture) 450 Oseberg East Oseberg South Veslefrikk Brage Fr0y Gullfaks Blend GullfaksA Buoy/via Mongstad 217 Gullfaks B Gullfaks West Vigdis Gullfaks C Gullfaks C Buoy/via Mongstad 292 Tordis, incl Borg Visund Gullfaks sat phase I Brent Blend Murchison Terminal (Sullom Voe) 3 Forties Heimdal condensate Terminal (Cruden Bay) 1 Draugen Draugen Buoy 223 Heidrun Heidrun Buoy/via Mongstad 211 Yme Yme Buoy/via Mongstad 27 Troll Oil Troll phase II Terminal (Mongstad) 293 Varg Varg Buoy 30 Asgard Asgard Buoy 159 jotun Jotun Buoy 104 Balder Balder Buoy 95 Nome Nome Buoy 175 Njord Njord Buoy 60 44 9 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS Other 13.1% Canada 4.5% USA 6.5% France 9.9% Germany Netherlands 16.9% Sweden 6.4' Great Britain 19.0% Norway 17.0% Figure 9.3 Shipments of Norwegian crude oil 1999s.Total: 168,7 scm oe (Source: Norwegian Petroleum Directorate) "to first recipient in 1999 by the first recipient nation. For commercial 30 per cent and automotive fuels for the remaining and technical reasons, various grades of oil are 10 per cent. often marketed as a single blend. Both oil quality Demand for LPG from the heating market is and flexibility in loading and storage affect the high in the six winter months, which drives up price obtained.Table 9.1 illustrates how Norwegian the price. That makes these products less attractive crudes are marketed as different blends. as an alternative to naphtha in petrochemicals. Figure 9.5 shows shipments of Norwegian NGLs Definition of natural gas to the first recipient in 1999. Methane (Ci) Ethane (C2) DRY GAS SALES Propane (C3) LPGs Norwegian dry (natural) gas is almost exclusively Butane (C4) sold under long-term contracts. All deals signed Pentanes and heavier NGLs before the Troll gas sales agreements in 1986 fractions, also known as: covered the entire reserves of a specified field c5+ Natural gasoline (depletion contracts).The Troll agreements, on Condensate the other hand, are volume contracts with Troll serving as the main source, but with the option Figure 9.4 Definition of natural gas (Source: MPE) to deliver from other Norwegian fields. Norway sells its gas through commercial negotiations, which have been pursued since SALES OF NATURAL CAS LIQUIDS (NGL) 1986 by the Gas Negotiating Committee (GFU). NGLs comprise ethane, propane, normal butane, Members of the latter have been Statoil (chair), iso-butane and condensate (see figure 9.4). Norsk Hydro and Saga Petroleum. Following the About 10 million scm oe of NGLs was produced acquisition of Saga by Hydro, only two companies from the NCS in 1999, including some 4.4 million remain members of the committee. scm oe in the form of liquefied petroleum gases The GFU is responsible for preparing and pursuing (LPG - propane and butanes). NGL output was all negotiations over Norwegian gas sales up to the unchanged from 1998 to 1999. final signing of the contract. If licensees are able to Europe's LPG market can be divided into three achieve a better price or to use the gas in their own main segments: heating (industrial and house- facilities, however, sales can be agreed independently hold fuels), petrochemicals and automotive fuel of the GFU.The authorities have the responsibility (directly, blended with petrol or converted by and duty to designate contract and delivery fields for alkylation to high-octane products). Heating all agreements, and to approve all commercial deals. constitutes about 60 per cent of the total market, A Gas Supply Committee (FU) was established with petrochemical production accounting for in 1993 to supplement the existing gas sales MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 45 Other 7.9% Belgium 10.3% USA 12.6% Denmark 13.5% Germany 3.6% Sweden 6.2% Finland 3.0% Great Britain 4.2% France 4.5% Spain 1.4% Netherlands 19.5% Poland 3.8% Norway 9.5% Figure 9.5 Shipments of NGLs/condensate 1999*.Total: 10 mill scm oe (Source: Norwegian Petroleum Directorate) *to first recipient organisation.This body advises the MPE on issues In 1993, Norwegian gas sellers also concluded relating to the development and use of fields contracts on new gas deliveries with Distrigaz for and transport systems. power generation in Belgium, with gas distributor Verbundnetz Gas in eastern Germany, and with Dry gas agreements Ruhrgas to provide additional supplies. Figure 9.6 shows Norwegian gas exports in 1998 Further agreements followed with Gaz de France by recipient. and Meeg (Mobil Germany) in 1994, and a supple- Gas from Frigg was sold under an contract with mentary deal was agreed with the French company British Gas, signed in 1973. Supplementary agree- in 1995. ments for gas from Odin and the Frigg satellites Gas from Fr0y has been delivered to UK com- were signed in 1980. Some fields have already been panies since 1995. Irish buyers began receiving part abandoned and further shutdowns are expected of the gas from this field in 1997. Supplementary over the next few years. Deliveries to the UK under deliveries were agreed with Ruhrgas in 1996, while existing contracts will be discontinued around Italy's Snam contracted to buy gas in January 1997. 2000, when reserves are due to be depleted. A contract was signed by the GFU with Czech Gas deliveries from the Ekofisk area are made company Transgas in April of the same year. under four different agreements.The Phillips group The GFU has also secured a long-term sales signed two contracts in 1973 and 1975 respectively contract from National Power in the UK, but no with a buyer group consisting of Germany's Ruhrgas, date has been set for the start of deliveries. Dutch Gasunie, Belgium's Distrigaz and Gaz de Associated gas from the Heidrun field is sold France.These deals embrace the Phillips group's as feedstock for methanol production and other interests in all eight Ekofisk area fields, and were applications at the Tjeldbergodden complex in merged into a single agreement in 1990. mid-Norway. A framework agreement on gas deliveries from In 1998, Norwegian gas sellers secured short-term Statfjord, Heimdal and Gullfaks Phase I was signed contracts covering gas sales for the winter of with European buyers in 1981 and followed later 1998-99 to UK companies Alliance Gas, British by final contracts. Gas Trading and Norsk Hydro (UK). In May 1986, an agreement was signed between Sales contracts with Polish interests were the Troll licensees and Germany's Ruhrgas, concluded by Norwegian gas sellers in 1999. Thyssengas and BEB as well as Distrigaz, Gasunie and Gaz de France. Similar deals were concluded Gas deliveries by the Troll group with Austria in November 1986 The first deliveries under the Troll contracts took and with Spain's Enagas in April 1988. place from Sleipner East in 1993. Gas began flowing The Gas Negotiating Committee (GFU) signed from Troll itself in the autumn of 1996. an agreement with SEP the Dutch association of Norwegian gas producers will have annual power producers, in September 1988. delivery commitments in the order of over 70 bn 46 9 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS Czech Republic 2.9% Germany 35.4' Great Britain 3.1% Spain 5.5% Netherlands 11.4% Figure 9.6 Norwegian gas exports 1999. Total: 45.5 bn scm (Source: Norwegian Petroleum Directorate) REFINING scm by 2005. Most of these volumes are sold under delivery contracts. The Norwegian refining sector embraces three Demand for Norwegian gas is currently high, in refineries: Statoil Mongstad close to Bergen, Esso's part because natural gas presents far fewer environ- refinery at Slagen near Oslo and the Shell facility mental problems than oil or coal. at Sola outside Stavanger. Approximate annual capacities are 10,4.5 and Norwegian gas in an 2.5 million tonnes respectively. international perspective Tables 9.2 and 9.3 illustrate Norwegian pro- Norway's gas exports totalled 45.5 bn scm in 1999, an duction and export of petroleum products increase of four per cent from 1998.This represented in 1995-99. about two per cent of world gas production, which was Shell has decided to close down its refinery roughly 2 200 bn scm. Some 80 per cent of the latter outside Stavanger some time during 2000. output was used in the producing countries, with the remainder being traded across national frontiers. RETAIL SALES Norway ranks among the world's top 10 gas ex- porters and is a major gas supplier to western Europe, Figure 9.7 provides an overview of most Norwegian where Norwegian natural gas deliveries account companies involved in retailing petroleum products, for some 10 per cent of total gas consumption. with their market shares. Table g.2 Norwegian production of petroleum products, 1 000 tonnes (Source: Statistics Norway) Product 1995 1996 1997 1998 1999 Petrol 2 872 3 216 3 418 3 233 3 204 Naphtha/other gasolines 791 694 586 778 990 Kerosine 1 059 1253 1 127 877 875 Medium distillates 6 187 6 870 7 126 6 921 7 279 Heavy fuel oil 1 727 1 780 1878 1 997 1 958 Total 12 636 13 813 14 135 13 806 14 306 9 MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS 47 Figure 9.7 Market shares 1999 (Source-. Norwegian Petroleum Institute) Table 9.3 Norwegian exports of petroleum products, 1 000 tonnes (Source:Statistics Norway) Product 1995 1996 1997 1998 1999 Petrol 1 361 1942 1806 1829 1830 Naphtha/other gasolines 2 572 2 836 4 561 3 563 3 705 Kerosine 328 457 305 224 200 Medium distillates 3 576 3 528 3 681 3 760 3 505 Heavy fuel oil 1 307 1 476 1 637 1428 1 638 Total 9 144 10 239 11 990 10 804 10 878 PETROCHEMICALS Statoil owns 50 per cent of the Borealis petro- Hydro also operates chlorine andVCM plants. chemicals group, a leading producer of polyolefins In addition, Bamble is the site of Borealis (plastic raw materials) with its head office in facilities producing plastic raw materials such as Copenhagen and some 6 000 employees. polyethylene and polypropylene based on ethylene I/S Noretyl, which produces ethylene and and propylene supplied by I/S Noretyl. propylene as well as chemicals, is owned 51 per Statoil and Conoco have a methanol plant at cent by Norsk Hydro (operator) and 49 per cent Tjeldbergodden, which started production in 1997. by Borealis.This company is located at Rafnes Jotun Polymer and Dyno Kjemigruppen are also in Bamble local authority south of Oslo, where regarded as part of Norway's petrochemicals sector. MARKET STATUS FOR NORWEGIAN PETROLEUM PRODUCTS Environmental aspects Emissions to the air Disrh.nges lo tht1 se.i Framework conditions Cooperation wilh thi indusliy Emissions to the air and discharges to the sea by Most offshore carbon dioxide and nitrogen oxide the petroleum sector derive from such activities emissions derive from energy generation on the as exploration, development, production and installations, which is based almost entirely on transport of oil and gas. All these operations natural gas.This means that more energy-efficient are necessary stages in oil and gas production. production, combined with greater efficiency in Emissions from Norway's petroleum business power generation, is important for efforts to limit will therefore be determined to some extent by this type of emission. That applies in particular to the level of activity, but continued technological carbon dioxide, since no competitive technology progress and further optimisation of operations which can help to achieve a significant reduction in could help to loosen the tie between emissions emissions of this gas is available today On the other and activity. Achieving this goal for carbon dioxide hand, increasing use is being made of low nitrogen represents the biggest challenge. oxide burners which can reduce these emissions The various emissions from offshore operations by roughly 80 per cent per operating turbine. contribute to different environmental problems. Energy requirements for Norwegian offshore Carbon dioxide and methane add to the green- production are expected to rise in the future, house effect, while nitrogen oxides can lead to both because transport distances to market will over-fertilising, acidification and - in combination increase as more northerly gas resources come with non-methane volatile organic compounds on stream and because the major oil fields are (nmVOC) - the formation of ground-level ozone. maturing and entering a phase of declining out- In addition, the long-term impact of oil and put. When a field matures, its water cut increase chemical discharges on marine life is a cause - in other words, the volume of produced water for concern. as a proportion of total production goes up. Studies have shown that emissions per unit Since energy requirements for offshore processing produced are low off Norway compared with similar are largely determined by the total wellstream operations in other countries. The exception is (oil, gas and water) rather than the output of nmVOC emissions, which are relatively high on hydrocarbons, a rising water cut helps to boost the NCS because of extensive offshore loading. energy consumption per unit produced. In addition, Norway's offshore operations are subject to the need to use energy for gas or water injection a strict regime which ensures that this industry will often increase on older fields in order to takes account of environmental considerations. maintain reservoir pressure and thereby recover These requirements build partly on obligations economically profitable oil volumes. accepted by the country through international Gas flaring also emits carbon dioxide and environmental agreements, and partly on purely nitrogen oxides. Resource management concerns national environmental targets. mean that flaring has long been kept at a low level off Norway, but it is still possible to reduce emissions from flaring even further. Extinguishing EMISSIONS TO THE AIR the pilot flame on several fields and further Figure 10.1 shows the most important sources improvements to operating routines are among of air pollution from offshore installations. the available methods. Emissions consist primarily of carbon dioxide (23 Most nmVOC emissions by the offshore industry per cent), nitrogen oxides (18 per cent), nmVOCs derive from vaporisation when loading crude oil (56 per cent) and methane, and are substantial on into shuttle tankers on the field.The oil industry is a national scale for the first three of these sources. expected to make new technology commercially The figures in brackets represent the respective available in the near future which may recover shares of Norwegian emissions in 1998. an estimated 70 per cent of such emissions. 1O ENVIRONMENTAL ASPECTS 51 Gas turbine Gas flaring Diffusive emissions exhaust Diesel fuel exhaust Figure TO.i Emissions to air DISCHARGES TO THE SEA oil- to water-based drilling muds, wider use of Figure 10.2 shows the most important sources of subsea installations and more water injection discharges to the sea from petroleum operations. for pressure support. These largely comprise oil, chemicals and minerals. Produced water brought up from the reservoir International agreements along with oil and gas is the principal source of on the environment oil discharges to the sea. Despite extensive treat- International environmental problems demand ment, small oil droplets remain when this water measures at both national and international levels. is discharged. Oily drill cuttings and drilling fluids, Without a set of international agreements, national which earlier accounted for a substantial pro- efforts to tackle global or regional environmental portion of oil discharges by the offshore industry, problems might be relatively ineffective or virtually are now injected beneath the seabed or taken useless. ashore for further treatment. Norway has concluded several international Produced water is also being injected back into agreements and accepted obligations which also sub-surface formations on a growing number of create a framework for offshore operations through fields. Other methods for limiting volumes of their impact on markets for oil and gas as well produced water are also under development/testing. as their requirements for national regulation In addition, small amounts of oil are discharged of emissions. from storage cells in the big concrete gravity base Adopted at the Rio conference in 1992, the UN structures, and in coolant water. And discharges framework convention on climate change came occur in connection with accidents and spills. into force in March 1994. While key principles are Many types of chemicals are used to keep enshrined in the convention, binding obligations petroleum operations stable and secure. Most for the industrial countries were first established consist of substances which form natural com- in the Kyoto protocol of December 1997.This ponents in seawater or soil.The use of chemicals specifies legally-binding, quantified and scheduled is strictly controlled, and little or no environmental emission restrictions for greenhouse gases.The impact has been documented for virtually all industrialised nations must collectively reduce substances discharged. Chemicals which accu- their annual greenhouse gas emissions in 2008-12 mulate in organisms or have disruptive effects by five per cent compared with the 1990 level. on hormones will be phased out. Their national obligations can be met both through The bulk of chemical discharges (91 per cent) domestic action and by measures in other countries. derive from drilling operations, but residues of The latter can involve the Kyoto mechanisms - production chemicals are also present in produced international emission trading, clean development water. Discharges of chemicals have increased and joint implementation - and should be in recent years, partly because of the shift from a supplement to national measures. 52 1O ENVIRONMENTAL ASPECTS Sewage/house, hold effluents Drilling discharges Figure 10.2 Emissions to sea FRAMEWORK CONDITIONS Protocols have been adopted under the 1979 convention on long-distance transboundary air Impact assessments pollution of the UN Economic Commission for Norway's Petroleum Act calls for environmental Europe (ECE) to regulate emissions of nitrogen impact assessments to be carried out as part of oxides, nmVOCs and sulphur dioxide. Norway has the input for decision-making at several stages met its current obligations for nitrogen oxides. in petroleum operations. Such studies are required The requirement for nmVOC was that emissions before an area is opened to exploration, in con- from the entire mainland and the Norwegian nection with field and transport system develop- economic zone south of the 62nd parallel should ments, and when disposing of abandoned be reduced by 30 per cent from the 1989 level by installations. 1999. Norway failed to meet this commitment by The MPE is responsible for ensuring that environ- the deadline. mental impact assessments are performed before A new protocol has recently been agreed which an area is opened for the award of exploration regulates emissions of nitrogen oxides, nmVOC, licences. Because the issue of opening new areas sulphur dioxide and ammonia. Its provisions require ranks as very important in terms of an overall Norway to reduce nitrogen oxide emissions to social evaluation and for local interests, it calls 156 000 tonnes by 2010, representing a 28 per cent cut for comprehensive and detailed consideration. from the 1990 level.The requirement for nmVOC is An impact assessment is therefore intended to virtually unchanged from the existing VOC protocol. clarify the environmental consequences of The most important international agreement petroleum operations and possible pollution regulating discharges to the sea is the convention threats as well as the economic and social effects for the protection of the marine environment of which could follow from the exploitation of the north-east Atlantic (Ospar).This convention petroleum reserves in the area. aims to prevent pollution of these waters and to On the basis of such an assessment, the Storting protect them from being harmed by human (parliament) undertakes an overall assessment activities. A general ban on dumping redundant of the advantages and disadvantages of pursuing offshore structures in the area covered by the petroleum operations in an area. Exploration will convention was adopted by the Ospar ministerial not be permitted where the disadvantages are meeting in 1998. Concrete installations and certain greatest. Both Storting and government can also parts of large steel structures are excluded from impose special conditions on an area, such as this ban.The commission meeting in 1999 adopted prohibiting drilling in certain periods. a strategy for offshore oil and gas operations. An environmental impact assessment must have Relevant European Union directives adopted in been carried out when an operator seeks official the European Economic Area will also contribute approval of development plans for field installa- to shaping Norwegian environmental policies. tions, transport or landfall pipelines and other 1O ENVIRONMENTAL ASPECTS 53 petroleum facilities.This assessment must include substances to the sea (zero discharge). a description of the environmental effect of Measures on existing installations will also be expected emissions from the project, and must assessed in the light of a zero discharge philosophy review the cost-benefit of alternative measures for reducing this impact. COOPERATION WITH THE INDUSTRY The assessment is circulated widely for comment to ensure that all consequences of a project are The strong focus on environmental aspects of identified as fully as possible. Low nitrogen-oxide Norwegian oil and gas production has undoub- burners are required by the authorities when new tedly put Norway's petroleum business up with gas turbines are to be installed offshore. Measures the absolute front runners in this area. to be implemented are determined as part of That reflects not only the way the authorities have the final approval of a project by the Storting taken environmental considerations very much or the government. into account when formulating policies for the Before a licence expires or an installation is sector, but also the industry's commitment. abandoned, the licensees must submit a decom- At the initiative of the oil industry, the Milj0sok missioning plan.This has to be accompanied by collaboration was established by the MPE in 1995. an impact assessment covering relevant methods Its purpose is to strengthen and extend cooperation for disposing of the installations concerned. The between the industry and the authorities so that authorities will consider the plan before reaching Norway's petroleum industry can continue to lie an abandonment decision. in the international forefront for environmentally- appropriate and cost-effective operation. Carbon dioxide tax Miljosok's members include research institutes, By virtue of the Act imposing taxes on carbon the petroleum industry, fishery interests and relevant dioxide emissions from offshore petroleum ope- government agencies. rations, a tax on burning fossil fuels - primarily natural gas and diesel oil - which emit carbon dioxide was introduced with effect from 1 January 1991. From 1 January 2000, this tax is levied at a rate of NOK 0.70 per litre of oil/scm of gas. Petroleum Act In addition to being subject to carbon dioxide tax, gas flaring is regulated through flaring permits as authorised in the Petroleum Act. These permits were introduced in the 1970s for resource management reasons. Pollution Act Discharges to the sea from petroleum operations are regulated under the Pollution Act, but there has been little regulation of emissions to the air under this statute. The principal rule now applied when approving new freestanding developments off Norway is that they discharge no environmentally-hazardous 54 1O ENVIRONMENTAL ASPECTS Legal and licensing framework Introduction Main features of the licensing system Key documents and legal provisions in the licensing system Other key legal provisions INTRODUCTION Operations on the continental shelf are pursued Act No 72 of 29 November 1996 pertaining to by just over 20 oil companies. petroleum activities (the Petroleum Act) provides Under section 2-1 of the Act, companies can apply the overall legal basis for the licensing system for a reconnaissance licence to make geological, which regulates petroleum operations in Norway. petrophysical, geophysical, geochemical and Regulations under the Act were issued by Royal geotechnical surveys, including shallow drilling. Decree of 27 June 1997.The Act and the provisions This licence grants no exclusive rights in the areas of the Act authorise the grant of permits and covered and does not entitle the holder to con- licences to explore for, produce and transport duct regular exploration drilling. petroleum and so forth. Before a production licence which permits Legal authority to tax this business is conferred such drilling can be awarded, the area in question by Act No 35 of 13 June 1975 relating to taxation must have been opened for exploration (section of subsea petroleum deposits (the Petroleum 3-1 of the Act).That can only happen after the Taxation Act). environmental, economic and social impact of Based on White Paper No 43 (1995-96), the such operations on other industries and adjacent Storting passed the Petroleum Act in the autumn regions has been assessed. of 1996, and it came into force on 1 July 1997 Production licences are normally awarded to replace Act No 11 of 22 March 1985. through licensing rounds.The government invites The Norwegian offshore licensing system com- applications for a certain number of blocks prises a number of documents which go into more (section 3-5 of the Act). Companies are normally detail on the rights and duties of the various parties. required to apply individually. These documents are briefly outlined below. However, White Paper No 26 (1993-1994) opened The European Union's directive 94/22/EC on the way for applicants to submit a joint (group) granting and using licences to explore for and application.This approach was used in the Barents produce hydrocarbons (the licensing directive) was Sea project in 1997 and the North Sea round of 1999. approved by the Council of Ministers on 30 May 1994. Production licences are awarded on the basis A decision to incorporate this provision in of objective, non-discriminatory and published Appendix IV Energy to the European Economic criteria. Area agreement was taken by the joint committee The announcement specifies the terms and of the EEA on 5 April 1995, and came into effect criteria on which awards will be based. On the on 1 September 1995. It applied to Norway as basis of applications received, the MPE generally a member of the EEA from the same date. The puts together a group of companies for each Norwegian licensing system complies with the licence and appoints an operator for this part- requirements of the directive. nership (section 3-7 of the Act). The operator is responsible for the daily conduct of operations in accordance with the MAIN FEATURES terms of the licence. OF THE LICENSING SYSTEM From the award of the licence covering the Section 1-1 of the Petroleum Act specifies that the Statfjord field in 1973 to the 13th licensing round proprietary right to subsea petroleum deposits on in 1991, state participation was a minimum of 50 the NCS is vested in the state. per cent in each licence. This constitutes the legal basis for government The state's average direct financial interest has regulation of the petroleum sector. declined from the 13th to the 15th round. 11 LEGAL AND LICENSING FRAMEWORK 57 KEY DOCUMENTS AND LEGAL PROVISIONS and operation of the licence and for allocating any IN THE LICENSING SYSTEM earnings, and requires the licensees to establish a Production licence management committee as their ultimate decision- The production licence regulates the rights making body. The licensees are represented on this and duties of licensees in relation to the state. committee. The agreement also regulates the This document supplements the provisions of operator's duties and obligations on behalf of the the Petroleum Act and specifies detailed terms partnership, and specifies the group's voting rules. for each licence. A production licence entails an exclusive right to explore for and produce Accounting agreement petroleum within its specified geographical area The licensees are also required to conclude an (section 3-3 of the Act). Ownership of the petro- accounting agreement with detailed provisions leum produced rests with the licensees. on the accounting and financial aspects of the Each licence is awarded for an initial exploration partnership. period, which can last up to 10 years (section 3-9 of the Offer letter Act). A specified work obli- A licensing round Before awarding production gation must be met during licences, the MPE will this period, including seismic Nomination recommend to the govern- surveying and/or exploration ment that specified compa- drilling and so forth (section nies receive interests in the 3-8 of the Act). acreage being offered. Announcement Providing the work obliga- An offer letter is sent to tion has been completed by each company with details the end of the period, the of the interests being offered licensees are generally entitled Application and of possible operators- to retain up to half the acreage Negotiation hips. It also specifies the covered by the licence for a terms which will apply to period of up to 30 years. the licence(s) on offer, and Award An area fee is charged per is accordingly regarded square kilometre, as specified as a key document in in detailed regulations (section Figure 11 Licensing round the award process. 4-9 of the Act). Providing all the licensees agree, a licence Various agreements can be relinquished (section 3-13 of the Act). If a discovery extends across more than one production licence, the licensees are obliged to Joint operating agreement conclude a unitisation agreement which ensures Section 3-3 of the Act makes the award of a pro- appropriate utilisation of these resources (section duction licence conditional on all the licensees 4-7 of the Act) and regulates rights to the discovery concluding a joint operating agreement. Similar Interests in a unitised field are normally allo- in many respects to company agreements made cated in line with the way resources in the dis- under civil law, this joint operating agreement covery divide between the production licences regulates relations between the partners. concerned. Licensee interests in a unitised field It forms the basis for day-to-day organisation will thereby differ from their holdings in the 58 11 LEGAL AND LICENSING FRAMEWORK separate production licences covering the field. A unitisation agreement must be approved by the MPE. A licensee can also conclude a pass-through agreement with its foreign parent company which transfers interests in a licence to the Norwegian branch of the parent (section 10-5 of the Act). Such agreements require the consent of the MPE. L OTHER KEY LEGAL PROVISIONS Section 4-2 of the Act requires licensees to submit a plan for development and operation (PDO) to the MPE for approval before they can start deve- loping a petroleum deposit. Under section 4-3 of the Act, the MPE is also authorised to approve plans for installation and operation (P1O) of facilities for transport and utilisation of petroleum. Section 4-8 of the Act requires the MPE to approve any use of such installations by others. Under section 4-10 of the Act, the Crown decides where and how petroleum is to be brought ashore. The Petroleum Act's section 5-1 also requires licensees to submit a decommissioning plan before a licence expires or the use of a facility is terminated.The MPE will then decide on the disposal of these facilities (section 5-3 of the Act). 11 LEGAL AND LICENSING FRAMEWORK 59 Licensing rounds 1st-4th licensing rounds 5th-1Oth licensing rounds 11th-15th licensing rounds Barents Sea project Awards outside licensing rounds North Sea round 5th-1Oth LICENSING ROUNDS The authorities can influence the pattern of players on the NCS through policies on awarding The fifth licensing round in 1979 was the first to new production licences and by giving or with- include acreage north of 62°N, on the Halten Bank holding approval of transfers. The overall policy in the Norwegian Sea and the Troms0 Patch in objective is to help secure a pattern which pro- the Barents Sea. Divided into three parts, the round motes the best possible resource management embraced the award of 12 production licences and which thereby lays a basis for creating the covering an equal number of blocks between highest possible value and government revenues. 1980 and 1982. Licensing policy is clarified through individual Nine blocks were awarded in the sixth licensing decisions made by the authorities in awarding round in 1981, involving relinquished acreage in production licences and approving/rejecting the southern part of Norway's North Sea sector. transfers. In the same year, five blocks were awarded in the seventh round on the Traena Bank, a new area of the Norwegian Sea. All this acreage has since 1st-4th LICENSING ROUNDS been relinquished. The first blocks on the NCS were announced in The eighth round in 1984 was the first to offer 1965.This round comprised all blocks in Norway's blocks in all parts of Norway's continental shelf North Sea sector (south of 62°N),with the - the North, Norwegian and Barents Seas. Block exception of those closest to the boundary with 34/7 - containing part of Snorre - proved the the Swedish and Danish continental shelves. most desirable acreage in this round, and Saga The Ministry received 11 applications covering was appointed operator. 208 of the 278 blocks announced. Acreage both south and north of 62°N was A total of 22 licences were awarded covering also included in the ninth round the following 78 blocks, making this the most comprehensive year, when 11 production licences covering 13 licensing round off Norway. At the time, little blocks were awarded. was known about geological conditions on the The 10th round was divided into two parts. continental shelf and opportunities for selecting Part A in 1985 was restricted to North Sea acreage, promising blocks were fairly limited. while Part B the following year covered production Small areas were announced in the second licences in the newly-opened Nordland II area licensing round in 1969, which aimed to allocate of the Norwegian Sea. A total of 17 blocks were some additional acreage to existing production awarded in this round. licences. Block 25/1, which proved in 1972 to contain the Frigg field, was awarded in this round. 11th-15th LICENSING ROUNDS The third round comprised 32 blocks, with 20 of these awarded in 1974,1976 and 1977.This The 11th licensing round in 1987, also divided into round was the first time Statoil received a 50 per Parts A and B, awarded a total of 13 production cent interest in each licence. Statoil, Saga licences covering 22 full or part blocks. One of Petroleum and Norsk Hydro were also awarded these was in the North Sea, one in the M0re South operatorships for the first time. area of the Norwegian Sea, four on the Halten Fifteen blocks were announced in 1978 for Bank and seven in the Barents Sea. Four of the the fourth licensing round, with eight awarded. Barents Sea licences involved key blocks. Part A This round included the award of block 31/2 - of the 12th licensing round in 1988 awarded 11 part of Troll - with Shell as operator. production licences covering 16 full or part 12 LICENSING ROUNDS 61 blocks in the North Sea.The following year, Part B 31/3,31/5 and 31/6.This acreage was the subject awarded 13 blocks in nine production licences of a supplementary award in 1982, with Statoil, - three (six blocks) in the Barents Sea, one on Hydro and Saga as operator for the respective blocks. Nordland II, three on the Halten Bank and two In 1985, production licence 112 was awarded (three blocks) on M0re I. as supplementary acreage to the East Frigg The 13th licensing round in 1991 awarded 36 licensees.The relinquished part of block 25/1 was blocks in 22 production licences, including 12 re-awarded in 1986 with Hydro as the operator, in the North Sea, three in the Norwegian Sea and production licence 185 went as supplementary and seven in the Barents Sea. acreage to the Brage licensees in 1991. Awards in the 14th licensing round in 1993 Production licence 085B was awarded to the covered 31 blocks in 17 production licences, Troll licensees in 1992, with production licence of which 11 were in the North Sea, four in the 018B going to the Ekofisk licensees in 1995. In the Norwegian Sea and two in the Barents Sea. latter year, production licences 050B and 114B The 15th licensing round in 1996 awarded 46 were also awarded to the licensees on Gullfaks blocks in 18 production licences, which included and Yme respectively. four in the North Sea and 14 in the Norwegian Sea. Eight production licences were awarded in This was the first round completed within the 1998. These included five carve-outs, where part framework of the European Union's licensing of the acreage in existing licences was partitioned directive (see chapter 11). off and made the subject of separate production licences - in this case 019C, 037B, 053B, 102B and 103B. BARENTS SEA PROJECT The other licences awarded were 114C, 128B In May 1997, production licences were awarded and 237 as supplementary acreage for the Yme, for seven areas of the Barents Sea, including Nome and Asgard fields respectively. four as seismic areas. The Barents Sea project Four production licences were awarded outside was initiated because of the special challenges licensing rounds in 1999. One of these, PL 250, faced in these waters - both as a result of reduced added supplementary acreage to the Ormen oil company interest and with regard to fishery Lange discovery made by well 6305/8-1.The three and environmental aspects. others were carve-outs from existing production licences awarded to new holders. These cases covered PLs 001 B,027 B and 028 B. AWARDS OUTSIDE LICENSING ROUNDS The Statoil/Mobil group was awarded a production NORTH SEA ROUND licence in 1973 for blocks 33/9 and 33/12, which proved to contain the Statfjord field. Mobil was Fourteen production licences in the Norwegian appointed operator. Statoil took over the opera- North Sea were awarded in June 1999 in the torship on 1 January 1987. North Sea round. Eleven of these were in new Block 34/10 (Gullfaks) was awarded in 1978 areas, while the remaining three represented to Norwegian licensees alone. supplementary acreage to existing discoveries or Part of Oseberg lies in block 30/9, and this fields - PLs 050 C.055 B and 249, supplementing acreage was awarded in 1982 to Statoil, Norsk 34/10-22 Gamma (Gullfaks), Brage and 25/4-6 S Hydro and Saga Petroleum with Statoil as opera- Vale respectively. tor. Proven in block 31/2,Troll extends into blocks These awards totalled 22 full or part blocks. 62 12 LICENSING ROUNDS 45000 40000 fH Numberofproductionlicei isooo ill Number of blocks awarded 30000 J 25000 1 —— Area awarded sq. km 20000 1 15000 15000 Figure 12.1 Awards per year (Source: Norwegian Petroleum Directorate) Table 12.1 Licensing rounds Licensing Number Licensing Number Year Licences Year Licences round of blocks round of blocks 1st 1965 78 001-022 13th 1991 36 163-184 2nd 1969-71 14 023-036 Bl 31/71 1991 1 185 Bl 33/9-12 Bl 31/3-5-61 1992 3 085B (Statfjord) 1973 2 037 14th 1993 31 186-202 3rd 1974-76 11 038-043 Bl 1/6 1 Bl 1/9, (Ekofisk) 1995 1 018B 24/11-12 Bl 34/10 1 15/8-9 (Gullfaks) 1995 1 050B 33/2-5 Bl 9/5 1 15/2-5 1976-77 044-049 (Yme) 1995 1 114B Bl 34/10 15th 1996 46 203-220 (Gullfaks) 1978 1 050 Barents 4th 1979 8 051-058 Sea project II 1997 221-236 5th part 1 and 2 1980-81 6 059-064 Bl 7/12 3 1998 019C 5th part 3 1982 6 073-078 Bl 33/12 3 1998 037B 6th 1981 9 065-072 Bl 30/6 3 1998 053B Bl 30/91 1982 1 079 Bl 25/5 3 1998 102B 7th 1982 5 080-084 Bl 25/07 3 1998 103B Bl 31/3-5-6 1983 3 085 Bl 9/1, 9/2 OG 9/4 8th 1984 17 086-100 (Yme) 1998 114C 9th 1985 13 101-111 Bl 6508/1 Bl 25/21 1985 1 112 (Nome) 1998 128B 10th A 1985 8 113-120 Bl 6407/3 10th B 1986 9 121-128 (Asgard) 1998 237 Bl 25/1 1 1986 1 129 11th A 1987 11 130-137 1 The award does not comprise the entire block. 11th B 1987 11 138-142 2 Parts of the area were awarded as seismic areas 12th A 1988 16 143-153 which will be geographically delimited later. 12th B 1989 13 154-162 3 Carve-out. 12 LICENSING ROUNDS 63 Exploration operations Seismic survey- Exploialion drilling Discoveiies FlituIO exploration Exploration operations seek to identify new commercial petroleum resources and to help maintain a stable and steady level of activity. They thereby lay the basis for future develop- ment, production and state revenues. The area of the NCS which could prove to con- tain oil and gas is almost three times the size of mainland Norway. Offshore areas currently opened for exploration represent about 60 per cent of the total continental shelf, and roughly nine per cent of this acreage is covered by production licences. 1974 197 Eg Wildcats Across such a large area, the basis for explor- ation will naturally differ in terms of resource Figure 13.2 Exploration drilling on the Norwegian continantal shelf. Exploration wells completed per year potential, established infrastructure and environ- 1966-1999 (Source: Norwegian Petroleum Directorate) mental challenges. SEISMIC SURVEYS Seismic surveys aim to acquire geological data During 1999,28 exploration wells - 18 wildcat by mapping subterranean strata. Sound waves and 10 appraisal - were completed or temporarily transmitted through the Earth's crust are reflected abandoned on the NCS. back to surface vessels and allow a picture to These included 15 (eight wildcat and seven be formed of rock formations deep underground. appraisal) in the North Sea and 13 (10 wildcat Data collected in this way are categorised as and three appraisal) in the Norwegian Sea. two-dimensional (2D) and three-dimensional (3D), There was no drilling in the Barents Sea. with the latter providing a more detailed - but Operators for the wells completed in 1999 were also more expensive - picture than the 2D variant. Statoil nine, Norsk Hydro one, Saga eight, BP Seismic mapping of the NCS began in 1962, Amoco three, Esso three, Shell two and Phillips and a total of 6 100 816 km had been shot by the one. A total of 967 exploration wells had been end of 1999. Of this, 2 587 767 km was collected completed or temporarily abandoned off Norway above 62°N since surveying began there in 1969. at 31 December 1999. The NPD, oil companies and survey contractors The future level of exploration will be deter- shot 640 866 km of seismic lines in 1999, including mined by a number of factors, with the expected 678 856 km of 3D seismic. development in oil prices, licence awards and discoveries leading to appraisal drilling as the most important. Most new wells are likely to be EXPLORATION DRILLING spudded in the North Sea, but operations in the Exploration drilling embraces wildcat and Norwegian Sea will also be significant. About appraisal wells. A wildcat is the first well on a 30-35 wildcat and appraisal wells will probably prospect, while an appraisal is drilled to determine be spudded off Norway in 2000. In the event, the extent and scope of a discovery. that would represent some increase from 1999. Figure 13.2 provides an overview of the number Four wells are planned in the Norwegian sector of exploration wells completed off Norway from of the Barents Sea during the summer of 2000, 1966 to 1999. the (irst in these waters since 1994. 13 EXPLORATION OPERATIONS 65 -20° -10° 0° 10° 20° 30° 40° 50° V/ 75° io. Recoverable 70°- resources 8J (bnscmoe) Jan Mayen 70° 65°- 65° 60°- j | Exploration areas 60° [j Awarded acreage |_| Seismic areas 10° 20° 30° 200 400 600 Km Figure 13.1 Exploration status (Source: Norwegian Petroleum Directorate) 66 13 EXPLORATION OPERATIONS DISCOVERIES Work has concentrated on finding resources Petroleum was discovered in five of the 28 near existing infrastructure and on testing new exploration wells drilled in 1999.Two of the five exploration models. were in the North Sea, and three in the Norwegian Substantial undiscovered resources are thought Sea. As operator for well 6305/3-3, Statoil found to remain on the NCS. Future activity will be gas on the D0nna Terrace north of the Skarv oil pursued both in established exploration regions and gas discovery made by BP Amoco in the of the North Sea and in areas which present Norwegian Sea in 1998. Statoil's discovery contains new challenges, such as geological understanding 15-20 bn scm oe.Saga operated well 6406/2-7, of and technological solutions for deepwater parts which found gas and condensate south-west of of the Norwegian Sea. Kristin. Although some uncertainty persists about Exploration strategy and operations must reflect the size of this discovery, some 40-50 million scm the special challenges faced in each area of the of oil and 40-50 bn scm of gas are thought to be NCS, which will determine how the work is pur- proven. Shell also made a small find near Draugen. sued. Priorities between and within these areas In the North Sea, two small oil discoveries could vary from one licensing round to another. were made close to existing infrastructure. Statoil operated well 9/2-9S,and this find has North Sea already been brought on stream with the aid of The North Sea is the best-explored part of the NCS. installations onYme.The 2/7-31 discovery, made Geological understanding is good over much of by Phillips, lies near Ekofisk. the area. A leading challenge in these waters is Table 13.1 lists the five exploration wells cate- to map resources close to existing and planned gorised as discoveries in 1999. Preliminary esti- infrastructure. Even small discoveries may show mates indicate that new finds in 1999 totalled good profitability if rational use is made of these 45-60 mill scm of oil and 55-80 bn scm of gas. facilities. The North Sea will probably be a core region for future exploration, which could also be FUTURE EXPLORATION extended to less well-known parts of the area. The authorities have aimed in recent years to Twelve production licences were awarded in encourage the discovery of additional oil the North Sea during 1999. The principal purpose resources in order to counter an anticipated of these awards is to find additional resources decline in oil production over the next decade. close to existing fields and infrastructure. Table 13.1 Discoveries made in 1999 (Source: Norwegian Petroleum Directorate) Hydro- Recoverable oil/ Recoverable Well Licence Operator carbon condensate resources gas resources type (mill scm) (bn scm) 9/2-9S 114 Statoil Oil <1 2/7-31 018 Phillips Oil and gas 2-6 2-5 6406/2-7 199 Saga Oil and condensate 40-50 40-55 6507/3-3 159 Statoil Gas 0.6 15.5 6407/9-9 093 Shell Oil 0.5 1.6 13 EXPLORATION OPERATIONS 67 Norwegian Sea offer in the 16th round, the government has sought Development of new fields and thorough explor- to strike a balance between deepwater areas and ation have matured parts of the Norwegian Sea the rather shallower Halten and D0nna Terraces. as a petroleum province in recent years. Several Assessing the development of proven resources discoveries made in this period are expected to in licensed acreage by comparison with new increase interest in drilling this part of the conti- exploration areas has been particularly important. nental shelf. Exploration operations in theV0ring and M0re Great interest is focused on exploring new areas Basins present the companies with major chal- of the Norwegian Sea. Some of this acreage, in the lenges. These relate particularly to deep waters M0re and V0ring Basins, involves water depths and unknown geology.The acreage on offer in down towards 1 500 metres. the 16th round covers 48 full or part blocks. Seven production licences were awarded in the To ensure a good balance between fishing and basin during the 15th offshore licensing round in environmental concerns on the one hand and 1996. In 1998, four wells were drilled in this area. petroleum operations on the other, the authorities Three were dry and the fourth yielded a large have imposed exploration restrictions in these gas discovery in the southern part of the Ormen waters.These are specified in the offer document. Lange dome. Plans call for 16th-round production licences to Operations will also be pursued in new explor- be awarded before Easter 2000. ation areas of the north-eastern Norwegian Sea, although activity in these areas must pay special Barent Sea attention to environmental considerations and Petroleum operations in the Barents Sea face fishery interests.Whatever the results from these new major challenges.Terms for working in this region deepwater exploration areas, work is expected to have been modified with a view to encouraging continue in established acreage on the Halten Bank. continued exploration. Licences were awarded Saga drilled a dry well on the Gjallar Ridge for seven areas of the Barents Sea in May 1997. during 1999 in the greatest water depth for such The Barents Sea project was initiated as a response an operation off Norway so far - 1 352 metres. to the special features of this area in exploration New production licences have been awarded terms. White Paper No 26 (1993-94) established approximately every other year in the Norwegian a new framework for operations there. Sea over the past decade. The most recent allo- This project will give oil companies the oppor- cation took place in the 15th offshore licensing tunity to survey larger areas than have traditionally round in 1995-96. been available before deciding whether to drill. With applications received at 31 January 2000, The government has laid the basis for seismic the 16th offshore licensing round will be an surveys over wide areas, which will later be nar- important element in long-term resource manage- rowed down if drilling is found to be appropriate. ment on the NCS. It will contribute to enhanced That will permit thorough and cost-efficient predictability and provide commercial opportu- reconnaissance over parts of the Barents Sea. nities for the industry. That will also contribute Companies operating in this area must take special to increased exploration and could give rise to account of environmental considerations and new field developments in the rather longer term. fishery interests. This will even out the level of activity and help Four or five exploration wells are planned to secure employment in the industry. in the Barents Sea during the summer of 2000, When putting blocks in the Norwegian Sea on which will be the first in these waters since 1994. 68 13 EXPLORATION OPERATIONS Fields in production Ekofisk area Ekofisk • Valhall • Hod • Gyda • Uia • Yme Sleipner area Sleipner East • Sleipner West • Varg Frigg area Heimdal • Frigg • Fr0y • Balder • Jotun Statfjord area Statfjord • Statfjord North • Statfjord East Murchison • Gullfaks • Cullfaks South • Rimfaks Guliveig • Vigdis • Visund • Snorre • Tordis Oseberg and Troll area Oseberg • Oseberg East • Togi • Veslefrikk Brage • Troll phase II • Troll phase I The Norwegian Sea Njord • Draugen • Heidrun • Nome • Åsgard Ekofisk Blocks and Block 2/5 - production licence 006. production licences Block 1/6 - production licence 011 and 018B. Blocks 1/5,2/4,2/7 and 7/11 - production licence 018. All blocks awarded in 1965. Operator Phillips Petroleum Norsk AS Licensees Phillips Petroleum Norsk AS 35.11% (Production licence Fina Exploration Licenses AS 28.50% 018, rounded to two decimal places) Norsk Agip AS 12.39% Elf Petroleum Norge AS 8.03% Norsk Hydro Produksjon a.s 6.37% Den norske stats oljeselskap a.s (SDFI 5%) 5.95% Total Norge AS 3.37% Saga Petroleum ASA 0.29% Den norske stats oljeselskap a.s saw its interest rise to 5.95% at 1 January 1999 through the inclusion of a direct financial interest of 5% for the state. Interests held by the other licensees were reduced proportionally.The Cod, Edda, Eldfisk, Embla, Ekofisk and West Ekofisk fields fall within this licence. So do parts of Tor and Albuskjell. Licensees Same as production licence 018. (Production licence 018B) Albuskjell is divided 50/50 between production licences 018 (block 2/4) and 018B (block 1/6). Awarded in 1995. Licensees BP Amoco Norge AS 28.33% (Production licence Amerada Hess Norge AS 28.33% 006, rounded to two decimal places) Enterprise Oil Norwegian A/S 28.33% Elf Petroleum Norge AS 15.00% Tor is divided between Elf/Amerada Hess and the Phillips group, which have 13.363% (block 2/5) and 86.637% (block 2/4) respectively Recoverable reserves Originally present: Remaining at 31.12.99: (incl Eldfisk, Embla 567.9 mill SCm oil 213.3 mill scm oil and Tor) 211.7 bn scm gas 55.7 bn scm gas 19.4 mill tonnes NGLs 5.2 mill tonnes NGLs Production Estimated production in 2000: Oil: 326 000 barrels/day Gas: 5.277 bn scm NGLs: 0.6 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 160.8 bn (2000 value). About NOK 152.7 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Phillipsbasen.Tananger 14 FIELDS IN PRODUCTION 71 .'*> //[ 1j /-• i 1975 1981 1987 1993 1999 Eight fields are on stream in the Ekofisk area: Albuskjell, Cod, Edda, Ekofisk, Eldfisk, Embla, Tor and West Ekofisk.This area has been developed in five phases. Ekofisk and its central processing facilities were developed 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 to Teesside in the UK. Pipeline transport of gas 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 currently exceeds 800 000 b/d. The Edda platform was modified in 1988 to receive gas from the Tommeliten field. A decision to develop the Embla field south-west of Ekofisk was taken in 1990, with pro- duction starting in 1993. Water depths in the area are 70-75 metres. A new plan for development and operation of the Ekofisk field (Ekofisk II) was approved in 1994, when the Phillips group also had its licence extended to 2028. A new Ekofisk Centre comprising two platforms has been installed on the field.The wellhead platform was put in place during the autumn of 1996, followed by a processing and transport facility in August 1997. Ekofisk II 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. Plans call for Cod, Edda, Albuskjell and West Ekofisk to be shut in. Plugging of wells on Cod has begun, but opportunities for further utilisation of the reserves in Edda, Albuskjell and West Ekofisk will be assessed. A total of 29 platforms are now installed in the Ekofisk area. In connection with the development of the new field centre, 14 of these installations in the Norwegian sector and two on the UK continental shelf will eventually be shut in. Decommissioning plans for these platforms are currently being prepared, and plans call for them to be submitted to the authorities in the autumn of 1999. The plan for development and operation of Eldfisk water injection was approved in 1997 and this project is now under construction. It involves a new platform with equipment for water injection, gas lift and gas injection on the field, tied back to one of the existing installations by a bridge.This facility is due to be ready in 2000. 72 14 FIELDS IN PRODUCTION Declining pressure in Ekofisk has caused seabed subsidence, and the operator initiated efforts in 1985 to safeguard the platforms against this effect. All the steel platforms in the Ekofisk Centre were jacked up by six metres in 1987, and a protective concrete wall was installed around the Ekofisk tank in 1989. However, the seabed has continued to subside - so far 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. 2 "20 2 "40 3°00 3 "20 3 "40 4 "00 4 "20 Westikofekp, 02/53 Southeast Tor \ Ekof.sk The Ekofisk area (Source-. Norwegian Petroleum Directorate) 14 FIELDS IN PRODUCTION 73 r\JV / 1 I Valhall Blocks and Block 2/8 - production licence 006. Awarded 1965. production licences Block 2/11 - production licence 033. Awarded 1969. Progress Government approval: July 1977 Production start-up: October 1982 Operator BP Amoco Norge AS Licensees BP Amoco Norge AS 28.09% (rounded to two Amerada Hess Norge AS 28.09% decimal places) Enterprise Oil Norwegian A/S 28.09% Elf Petroleum Norge AS 15.72% Recoverable reserves Originally present: Remaining at 31.12.99: 132.3 mill scm oil 70.5 mill scm oil 31.2 bn scm gas 18.8 bn scm gas 4.5 mill tonnes NGLs 2.3 mill tonnes NGLs Production Estimated production in 2000: Oil: 99 000 barrels/day NGLs: 0.15 mill tonnes Investment Total investment is likely to be NOK 29.5 bn (2000 value) About NOK 23.4 bn (2000 value) had been invested at 31.12.99 Operating organisation Stavanger Main supply base Phillipsbasen/Akerbasen.Tananger A landing permit was awarded in 1977 for the Valhall and Hod fields at the southern end of Norway's North Sea sector.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. A wellhead platform was installed in 1996. Up to 19 wells will come on stream. Plans have also been drawn up for additional wells from the original Valhall installations. Water injection to improve oil recovery is under consideration.Two 20-inch pipelines, for oil and gas respectively, link Valhall to the Ekofisk Centre. In connection with the Ekofisk II development,a new 24-km gas line fromValhail will tie directly into the Norpipe gas trunkline to Emden. Oil is due to continue being piped via Ekofisk to Teesside. The state has a 10 per cent net profit agreement for block 2/11. 74 14 FIELDS IN PRODUCTION Oit: 1000 barrels/day HOO Gas; bn scm/yeai / N _- ___,— 1990 1995 '996 '999 Hod Block and Block 2/11 - production licence 033. Awarded 1969. production licence Progress Government approval: June 1988 Production start-up: August 1990 Operator BP Amoco Norge AS Licensees Amerada Hess Norge AS 25% BP Amoco Norge AS 25% Enterprise Oil Norwegian A/S 25% Elf Petroleum Norge AS 25% Recoverable reserves Originally present: Remaining at 31.12.99: 8.2 mill scm oil 1.8 mill scm oil 1.5 bn scm gas 0.3 bn scm gas 0.2 mill tonnes NGLs Production Estimated production in 2000: Oil: 6 000 barrels/day Investment Total investment is likely to be NOK 1.7 bn (2000 value) About NOK 1.7 bn (2000 value) had been invested at 31.12.99 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. 14 FIELDS IN PRODUCTION 75 &Fr ='.: OiLIOOO barrels/day GYDA Gas: bn scm/year t \ 393 1996 1999 Gyda Blocks and Block 2/1 and 7/12 - production licence 019B. Awarded 1977. production licence Progress Government approval: June 1987 Production start-up: June 1990 Operator BP Amoco Norge AS 64.25% Licensees Den norske stats oljeselskap a.s (SDFI 30%) 30% BP Amoco Norge AS 56% Norske AEDC A/S 5% Norske Moeco A/S 5% AS Pelican 4% Recoverable reserves Originally present: Remaining at 31.12.99: (incl Gyda South) 36.3 mill scm oil 2.7 mill scm oil 7.5 bn scm gas 2.2 mill tonnes NGLs 0.1 mill tonnes NGLs Production Estimated production in 2000: (incl Cyda South) Oil: 26 000 barrels/day NGLs: 0.14 mill tonnes Investment Total investment is likely to be NOK 12.1 bn (2000 value). About NOK 11.3bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Sola The Gyda field in the southern part of Norway's North Sea sector was discovered 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 use as fuel there by the Ekofisk group. Government approval to develop the small Gyda South satellite was given in June 1993.This field is being drained with one or two extended-reach wells drilled from the Gyda platform. Production started in 1995. 76 14 FIELDS IN PRODUCTION Ula Block and Block 7/12 - production licence 019A. Awarded 1965. production licence Progress Government approval: May 1980 Production start-up: October 1986 Operator BP Amoco Norge AS Licensees BP Amoco Norge AS Svenska Petroleum Exploration AS 15% AS Pelican 5% Recoverable reserves Originally present: Remaining at 31.12.99: 70 mill scm oil 10.2 mill scm oil 3.7 bn scm gas 2.5 mill tonnes NGLs 0.2 mill tonnes NGLs Production Estimated production in 2000: Oil: 26 000 barrels/day NGLs: 0.03 mill tonnes Investment Total investment is likely to be NOK 16 bn (2000 value). About NOK 15.6 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Sola Discovered in 1976, Ula lies at the southern end of Norway's North Sea sector and has been developed with three conventional steel platforms - for processing, drilling and quarters respectively The water depth is about 70 metres. Oil is carried by the Ula pipeline to Ekofisk and on to Teesside. FIELDS IN PRODUCTION 77 OihlOOObaneis/d, Yme Blocks and Block 9/2 - production licence 114. Awarded 1985. production licences Block 9/2 - production licence 114B. Awarded 1995. Blocks 9/1,9/2 and 9/4 - production licence 114C. Awarded 1998. Progress Government approval: January 1995 Production start-up: February 1996 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 30%) 65% Saga Petroleum ASA 25% RWE-DEA Norge AS 10% Recoverable reserves Originally present: Remaining at 31.12.99: 9.3 mill scm oil 2.7 mill scm oil Production Estimated production in 2000: Oil: 27 000 barrels/day Investment Total investment is likely to be NOK 2.4 bn (2000 value). About NOK 2.4 bn (2000 value) had been invested at 31.12.! Operating organisation Stavanger Main supply base Dusavik Oil was first proven in 1987. Yme lies on the Egersund Bank, about 160 km north-east of Ekofisk.The field has been developed with a jack-up platform linked to a tanker for storage and export.The Yme Beta East satellite was approved for development in November 1995 with a subsea installation tied back to Yme. The water depth in the area is 80-90 metres. 78 14 FIELDS IN PRODUCTION -A - v- // v f 1993 1995 1997 1999 Sleipner East Blocks and Blocks 15/8 and 15/9 - production licence 046. Awarded 1976. production licence Progress Government approval: December 1986 Production start-up: August 1993 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 29.6%) 49.6% Esso Expl & Prod Norway A/S 30.4% Norsk Hydro Produksjon a.s 10.0% Elf Petroleum Norge AS 10.0% Recoverable reserves Originally present: Remaining at 31.12.99: 50.3 bn scm gas 26.4 bn scm gas 11 mill tonnes NGLs 3.5 mill tonnes NGLs 25.1 mill scm condensate 6.5 mill scm condensate Production Estimated production in 2000: Gas: 3 183 bn scm NGLs: 1.188 mill tonnes Condensate: 2.197 mill scm Investment Total investment is likely to be NOK 28.8 bn (2000 value). About NOK 28 bn (2000 value) had been invested at 31.12.99. Transport Gas is piped through Statpipe/Norpipe to Emden and through Zeepipe to Zeebrugge. Condensate is piped through a separate line to Karsto. Operating organisation Stavanger Main supply base Dusavik Sleipner East was discovered in 1981, and has been developed with the integrated Sleipner A production, drilling and quarters platform, two templates forsubsea wells, a riser platform and a flare stack. Gas from this field has been sold under the Troll gas sales agreements. The Storting (parliament) approved plans to change the landfall site for condensate from Teesside to Karsto in November 1989. Loke Heimdal, a Sleipner East satellite, was developed with a single subsea well tied back to Sleipner A. This field has been fully depleted and was shut in during the spring of 1997. Production from the Gungne satellite began in April 1996 through wells drilled from the A platform. In addition, development of the Loke Triassic satellite to produce from the Loke Heimdal template has been approved. Loke Triassic produces from the Loke Heimdal template. 14 FIELDS IN PRODUCTION 79 Gas: bn scm/j-ear SLEIPNER WEST .— -3 ./• / ^> - 2 -1 / Sleipner West Blocks and Block 15/6 - production licence 029. Awarded 1969. production licences Blocks 15/8 and 15/9 - production licence 046. Awarded 1976. Progress Government approval: December 1992 Production start-up: August 1996 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 32.37%) 49.50% {rounded to two Esso Expl & Prod Norway A/S 32.24% decimal places) Elf Petroleum Norge AS 9.41% Norsk Hydro Produksjon a.s 8.85% Recoverable reserves Originally present: Remaining at 31.12.99: 125.5 bn scm gas 97.1 bn scm gas 8.5 mill tonnes NGLs 6.9 mill tonnes NGLs 27 mill scm condensate 19.6 mill scm condensate Production Estimated production in 2000: Gas: 6 797 bn scm NGLs: 0.592 mill tonnes Condensate: 2.081 mill scm Investment Total investment is likely to be NOK 23.6 bn (2000 value). About NOK 15.4 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik Sleipner West was discovered in 1974 and has been tied back to Sleipner East. These two fields share the same operations organisation. Sleipner West is produced through two installations: the Sleipner B wellhead platform and the SleipnerT gas treatment facility. Unprocessed wellstreams from Sleipner B are piped the 12 kilometres to SleipnerT,which is linked by a bridge to Sleipner A. Carbon dioxide is removed from the wellstream on the T platform and injected into a sub-surface formation. Like Sleipner East, this field delivers gas under the Troll gas sales agreements and its condensate is landed at Karst0. 80 14 FIELDS IN PRODUCTION Varg Block and Block 15/12 - production licence O38.Awarded 1974. production licence Progress Government approval: May 1996 Production start-up: December 1998 Operator Saga Petroleum ASA Licensees Den norske stats oljeselskap a.s (SDF1 30%) 65% Saga Petroleum ASA 35% Recoverable reserves Originally present: Remaining at 31.12.99: 4.4 mill scm oil 2.7 mill scm oil Production Estimated production in 2000: Oil: 30 000 barrels/day Investment Total investment is likely to be NOK 4.3 bn (2000 value). About NOK 4.3 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik Varg was proven in 1984 and lies south of Sleipner East. Saga took over as operator in 1995. 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 cables for power supply and control. The wellhead platform will normally be unstaffed. Oil is transferred to shuttle tankers from the production ship via a discharging system at the stern of the latter. The water depth is 84 metres. The production ship was sold in 1999 to Petroleum Geo Services (PGS), which also took over management responsibility for the vessel. An agreement on leasing back and operating the vessel for the duration of the field's producing life has been concluded by the Varg licensees with PGS. 14 FIELDS IN PRODUCTION 81 f \ 4 86 1989 1992 Heimdal Block and Block 25/4 - production licence 036. Awarded 1971. production licence Progress Government approval: Spring 1981 Production start-up: October 1985 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 20%) 40.00% (rounded to two Marathon Petroleum Norge A/S 23.80% decimal places) Norsk Hydro Produksjon a.s 15.80% Elf Petroleum Norge AS 11.94% Total Norge AS 4.82% Saga Petroleum ASA 3.47% AS Ugland Rederi 0.17% Recoverable reserves Originally present: Remaining at 31.12.99: 6.9 mill scm oil 0.8 mill scm oil 44.6 bn scm gas 2.2 bn scm gas Production Estimated production in 2000: Oil: 0.04 mill scm Gas: 0.213 bn scm Production is expected to cease in 2002 Investment Total investment is likely to be NOK 16.9 bn (2000 value). About NOK 16.8 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Dusavik 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. According to the operator, production is expected to cease during 1999. In 1998, the MPE received development plans for the Heimdal gas centre, which involve installing a new riser platform as well as modifying and upgrading the existing installation.This project will ensure long-term operation of the Heimdal platform by using its processing capacity for gas from Huldra and other surrounding fields.The MPE approved the plan for development and operation of the Heimdal gas centre in 1999. 82 14 FIELDS IN PRODUCTION / .**• H 385 1989 1993 1997 Frigg Blocks and Block 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 Elf Petroleum Norge AS Licensees Elf Exploration UK pic 26.12% (rounded to two Norsk Hydro Produksjon a.s 19.99% decimal places) Elf Petroleum Norge AS 16.07% Total Norge AS 12.60% Den norske stats oljeselskap a.s 12.16% Total Oil Marine pic 13.06% After exercising its option, Den norske stats oljeselskap a.s has a five per cent interest in block 25/1. Recoverable reserves Originally present: Remaining at 31.12.99: (Norwegian share) 119.8 bn scm gas 7.3 bn scm gas 0.5 mill scm condensate Production Estimated production in 2000: Gas: 0.4 bn scm. (Norwegian share) Production is expected to cease in 2002. Investment Total investment is likely to be NOK 34.6 bn (2000 value). About NOK 34.6 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik 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 have also processed oil and gas from Fr0y since the summer of 1995. 14 FIELDS IN PRODUCTION 83 Production from Fr0y is expected to cease during 2000. 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, December 1997 and April 1999 respectively.The government decided not to acquire the North-East Frigg, Odin, East Frigg and Lille-Frigg installations. 60 °M 59°30 0 8 .1.6 24Km u u u u ^—i—faj The Frigg area (Source: Norwegian Petroleum Directorate) 14 FIELD IN PRODUCTION N /1 -0.3 / X N \ -0.2 1995 1996 1997 1998 1999 R * ~" ' Fr0y Blocks and Block 25/2 - production licence 026. Awarded 1969. production licences Block 25/5 - production licence 102B. Awarded 1985. Progress Government approval: May 1992 Production start-up: May 1995 Operator Elf Petroleum Norge AS Licensees Den norske stats oljeselskap a.s (SDFI 41.62%) 53.96% (rounded to two Elf Petroleum Norge AS 24.76% decimal places) Total Norge AS 15.23% Norsk Hydro Produksjon a.s 6.05% Recoverable reserves Originally present: Remaining at 31.12.99: 5.5 mill scm oil 0.2 mill scm oil 1.6 bn scrn gas 0.4 bn scm gas 0.1 mill scm condensate Production Estimated production in 2000: Oil: 4000 barrels/day Gas: 0.161 bn scm Condensate: 5 000 scm Production is expected to cease in 2000. Investment Total investment is likely to be NOK 6.7 bn (2000 value). About NOK 6.7 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik The bulk of Fr0y resources are thought to lie in block 25/5.The field is produced from a wellhead platform tied back to Frigg. Oil and condensate are piped through Frostpipe to Oseberg A, and on through the Oseberg Transport System to Sture near Bergen. Gas is piped to the UK via the Norwegian Frigg pipeline. Located in 120 metres of water, Fr0y is expected to cease production during the second quarter of 2000. 14 FIELDS IN PRODUCTION 85 Balder Blocks and Block 25/11 - production licence 001. Awarded 1965. production licences Block 25/10 - production licence 028. Awarded 1969. Progress Government approval: February 1996 Production start-up: October 1999 Operator Esso Expl & Prod Norway A/S Licensees Esso Expl & Prod Norway A/S 100% Recoverable reserves Originally present: Remaining at 31.12.99: 26.7 mill scm oil 25.7 mill scm oil Production Estimated production in 2000: Oil: 95 (300 barrels/day Investment Total investment is likely to be NOK 10 bn (2000 value). About NOK 9.8 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik 120 r-JO 2 "00 2*20 2"W Balder was proven in 1967 and lies in the North Sea about 85 km north of the Sleipner area and 190 km west of Stavanger.This reservoir is very complex, and uncertainty over its production pro- perties remains very high. The water J1S/S5 depth is roughly 125 metres. Balder has been developed with a production ship tied to subsea-completed wells.The oil f U \ pner East is processed and stored on the ship before being transferred to shuttle tankers. The Sleipner and Balder area 1=40 200 2'20 2'4 (Source: Norwegian Petroleum Directorate) 86 14 FIELDS IN PRODUCTION Z* ,, •',•»•.. it Jotun Blocks and Block 25/8 - production licence 027. Awarded 1969. production licences Block 25/7 - production licence 103B. Awarded 1985. Progress Government approval: June 1997 Production start-up: September 1999 Operator Esso Expl & Prod Norway A/S Licensees Esso Expl & Prod Norway A/S 45.00% (rounded to two Enterprise Oil Norwegian A/S 45.00% decimal places) Den norske stats oljeselskap a.s (SDF1 3%) 5.00% Norske Conoco A/S 3.75% Amerada Hess Norge AS 1.25% Recoverable reserves Originally present: Remaining at 31.12.99: 31.1 mill scm oil 30.2 mill scm oil 1 bn scm gas 1 bn scm gas Production Estimated production in 2000: Oil: 104 000 barrels/day Gas: 0.014 bn scm Investment Total investment is likely to be NOK 9 bn (2000 value). About NOK 8.2 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Dusavik Jotun comprises the Elli.Elli South andTau 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 will normally be unstaffed once drilling has been completed. Oil production is transported by shuttle tankers. Gas will be exported through a pipeline tied into the Statpipe system. 14 FIELDS IN PRODUCTION 87 Oil: 1000 barrels/day STATFJORD Gas: bn sc aJ L / 1 / / I '979 '93? 11987 1993 '995 '999 Statfjord Blocks and Blocks 33/9 and 33/12 - production licence 037. Awarded 1973. production licence Progress Government approval: 1976 Production start-up: November 1979 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s 44.34% (rounded to two Mobil Development of Norway AS 12.82% decimal places) Norske Conoco A/S 10.33% Esso Expl & Prod Norway A/S 8.55% A/S Norske Shell 8.55% Conoco (UK) Ltd 4.84% Chevron UK Ltd 4.84% BP Exploration Operating Co Ltd 4.84% Enterprise Oil Norwegian A/S 0.89% Recoverable reserves Originally present: Remaining at 31.12.99: (Norwegian share) 569.5 mill scm oil 72.5 mill scm oil 56.4 bn scm gas 14.6 bn scm gas 13.9 mill tonnes NGLs 4.3 mill tonnes NGLs Production Estimated production in 2000: (Norwegian share) Oil: 185 000 barrels/day Gas: 1.704 bn scm NGLs: 0.421 mill tonnes Investment The Norwegian share of total investment is likely to be NOK 104.5 bn (2000 value). About NOK 92.5 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Coast Center Base, Sotra and Flor0 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. Each platform is tied to a buoy for loading 14 FIELDS IN PRODUCTION 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 between the UK and Norwegian licensees gives Norway 85.47 per cent of the Statfjord reserves, with Britain taking 14.53 per cent. 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, Statfjord North and Statfjord East are processed on and exported from the Statfjord installations. l°40 2°00 2 "20 f°4fl 2°00 0 8 16 24 Km 1 u M ^ V u W The Gullfaks, Statfjord and Snorre area (Source: Norwegian Petroleum Directorate) 14 FIELDS IN PRODUCTION 89 -0.4 II -0-2 1996 1998 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 Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 30%) 51.88% (rounded to two Mobil Development of Norway AS 15.00% decimal places) Norske Conoco A/S 12.08% Esso Expl & Prod Norway A/S 10.00% A/S Norske Shell 10.00% Enterprise Oil Norwegian A/S 1.04% Recoverable reserves Originally present: Remaining at 31.12.99: 41.6 mill scm oil 25.4 mill scm oil 3.1 bn scm gas 2.2 bn scm gas 0.7 mill tonnes NGLs 0.5 mill tonnes NGLs Production Estimated production in 2000: Oil: 62 000 barrels/day Gas: 0.268 bn scm NGLs: 0.052 mill tonnes Investment Total investment is likely to be NOK 6.2 bn (2000 value). About NOK 5.6 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Coast Center Base, Sotra and Flor0 Discovered in 1977, Statfjord North is about 17 km north of Statfjord in block 33/9. It has been developed with subsea installations in 250-290 metres of water, tied back to Statfjord C for processing and export. 90 14 FIELDS IN PRODUCTION 0 barfelj/day STATFJORD EAST Gas: bn scm year -0.8 60 r / -0.6 - 0.4 20 -0.2 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: October 1994 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 40.5%) 55.05% (rounded to two Esso Expl & Prod Norway A/S 10.25% decimal places) Mobil Development of Norway AS 7.50% Norske Conoco A/S 6.04% A/S Norske Shell 5.00% Idemitsu Petroleum Norge AS 4.80% Saga Petroleum ASA 2.44% Norsk Hydro Produksjon a.s 4.20% Elf Petroleum Norge AS 2.80% RWE-DEA Norge AS 1.40% Enterprise Oil Norwegian A/S 0.52% Recoverable reserves Originally present: Remaining at 31.12.99: 35.7 mill scm oil 16.3 mill scm oil 5.1 bn scm gas 3.9 bn scm gas 1 mill tonnes NGLs 0.7 mill tonnes NGLs Production Estimated production in 2000: Oil: 73 000 barrels/day Gas: 0.565 bn scm NGLs: 0.078 mill tonnes Investment Total investment is likely to be NOK 5.2 bn (2000 value). About NOK 4.5 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Coast Center Base, Sotra and Floro. 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. 14 FIELDS IN PRODUCTION 91 -f\ r \ ——- 585 1989 1995 1997 AAurchison Block and Block 33/9 - production licence 037. Awarded 1973. production licence The Norwegian share is 22.2 per cent, while the British share is 77.8 per cent. Progress Production start-up: 1980 Operator Kerr-McGee North Sea (UK) Limited Licensees Kerr-McGee North Sea (UK) Limited 68.72% (rounded to two Den norske stats oljeselskap a.s 11.52% decimal places) Ranger Oil 9.08% Mobil Development of Norway AS 3.33% Norske Conoco A/S 2.68% Esso Expl & Prod Norway A/S 2.22% A/S Norske Shell 2.22% Enterprise Oil Norwegian A/S 0.23% Recoverable reserves Originally present: Remaining at 31.12.99: (Norwegian share) 13.6 mill scm oil 0.8 mill scm oil 0.4 bn scm gas 0.1 bn scm gas 0.4 mill tonnes NGLs Production Estimated production in 2000: (Norwegian share) Oil: 3 000 barrels/day Gas: 0.003 bn scm1 NGLs: 0.005 mill tonnes Investment The Norwegian share of total investment is likely to be NOK 6.3 bn (2000 value). About NOK 6.3 bn (2000 value) had been invested at 31.12.99. 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, and production began the following year. Both Norwegian and UK shares of the oil and NGLs are landed through the Brent system to Sullom Voe in Shetland, with the gas piped to St Fergus in Scotland. Kerr-McGee North Sea (UK) Ltd took over from Oryx UK Energy Company as Murchison operator on 1 January 1999. 92 14 FIELDS IN PRODUCTION Oit: 1000 barrels/day C U LLFA KS Gas: bn scm/year / \_ V IX—_- 1990 1994 '993 Gullfaks Block and Block 34/10 - production licence 050. Awarded 1978. production licences Block 34/10 - production licence 050B. Awarded 1995. Progress Government approval: Gullfaks phase 1 (platforms A and B) was approved in the spring of 1981. Gullfaks phase II (platform C) was approved in June 1985. Production start-up: December 1986 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 73%) 91% Norsk Hydro Produksjon a.s 9% Recoverable reserves Originally present: Remaining at 31.12.99: (incl Gullfaks West 314.8 mill scm oil 54.8 mill scm oil and Gullfaks Lunde) 21.2 bn scm gas 3.5 bn scm gas 2 mill tonnes NGLs 0.7 mill tonnes NGLs Production Estimated production in 2000: (incl Gullfaks West Oil: 299 000 barrels/day Gas: 0.773 bn scm NGLs: 0.1 mill tonnes and Gullfaks Lunde) Investment Total investment is likely to be NOK 79.5 bn (2000 value). About NOK 70.9 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Coast Center Base, Sotra and Flor0. Gullfaks was discovered in 1978 at the northern end of Norway's North Sea sector. Gullfaks A and C are integrated production, drilling and quarters platforms, while oil and gas from Gullfaks B is piped to the A or C installations for further treatment and storage. Stabilised oil is stored in the A and C gravity base structures and loaded into tankers via buoys. A tie-in to Statpipe allows rich gas from the field to be piped to Karst0 north of Stavanger, where the NGLs are removed before the dry gas travels via Ekofisk to Emden. Crude oil shipments are organised by I/S Gullfaks Transport, which is owned by the Gullfaks licensees in the same proportion as their interests in the field. 14 FIELDS IN PRODUCTION 93 The wellstream from Tordis is processed on Gullfaks C, while stabilised crude from Vigdis is stored on and shipped from Gullfaks.Visund is also tied back to Gullfaks C for processing and transport. Gullfaks lies in 130-220 metres of water. Development approval for the small Gullfaks West satellite was given by the government in January 1993. Being drained by a horizontal well drilled from Gullfaks B, this field contains some 2.9 mill scm of oil and is expected to remain on stream for six years. Draining Gullfaks Lunde with wells drilled from Gullfaks C was approved in November 1995. With recoverable oil reserves put at 3.8 mill scm, the field came on stream in 1996 and will produce for 10 years. Approval to develop the Gullfaks satellites - Gullfaks South, Rimfaks and Gullveig - was given in April 1996.They have been developed with subsea wells remotely operated from Gullfaks A. See the descriptions which follow. 94 14 FIELDS IN PRODUCTION Gullfaks South Block and Block 34/10 - production licence 050. Awarded 1978. production licence Progress Government approval: March 1996 Production start-up: March 1999 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 73%) 91% Norsk Hydro Produksjon a.s 9% Recoverable reserves Originally present: Remaining at 31.12.99: 32.8 mill scm oil 32 mill scm oil 61.2 bnscm gas 61.2 bn scm gas Production Estimated production in 2000: Oil: 37 000 barrels/day Investment Total investment is likely to be NOK 13 bn (2000 value), About NOK 5.9 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Coast Center Base, Sotra and Flor0. Gullfaks South lies about nine km south of Gullfaks. A complex reservoir means that recoverable reserves are uncertain.The field was declared commercial in October 1993, and has been the subject of a phased development. A plan for development and operation of the first (oil) phase was submitted to the authorities in December 1995 and approved in April 1996, while plans for phase II - covering gas and associated fluids - were submitted in December 1997 and approved in June 1998. Gullfaks South phase I has been developed with subsea wells tied back to Gullfaks A. Gullfaks South phase II is under development, based on piping production to Gullfaks C for processing into rich gas. A tie-in to Statpipe will allow this output to be transported to Karst0 for further processing and sale. See chapter 15: Fields under development. 14 FIELDS IN PRODUCTION 95 Rimfaks Block and Block 34/10 - production licence 050. Awarded 1978. production licence Progress Government approval: March 1996 Production start-up: February 1999 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 73%) 91% Norsk Hydro Produksjon a.s 9% Recoverable reserves Originally present: Remaining at 31.12.99: 19.5 mill scm oil 18.1 mill scm oil Production Estimated production in 2000: Oil: 22 000 barrels/day Investment Total investment is likely to be NOK 5.6 bn (2000 value). About NOK 3.8 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Coast Center Base, Sotra and Flor0. Discovered in 1983, Rimfaks straddles the boundary between blocks 34/10 and 33/12 about 15 km south-west of Gullfaks. Production licence 037 has agreed to buy the oil produced. Development is based on subsea-completed wells tied back to Gullfaks A. The plan for development and operation was submitted to the authorities in December 1995 and approved the following April.The water depth is about 135 metres. 96 14 FIELDS IN PRODUCTION Gullveig Block and Block 34/10 - production licence 050. Awarded 1978. production licence Progress Government approval: March 1996 Production start-up: October 1998 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 73%) 91% Norsk Hydro Produksjon a.s 9% Recoverable reserves Originally present: Remaining at 31.12.99: 2.7 mill scm oil 2.3 mill scm oil 2 bn scm gas 2 bn scm gas Production Estimated production in 2000: Oil: 9 000 barrels/day Investment Total investment is likely to be NOK 1 bn (2000 value), About NOK 0.9 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Coast Center Base, Sotra and Flor0 The Gullveig discovery, made in 1995, has been developed with subsea facilities tied back to Gullfaks A. Submitted to the authorities in December 1995, the plan for development and operation was approved in April 1996. Production started on 10 October 1998. 14 FIELDS IN PRODUCTION 97 / / Vigdis Block and Block 34/7 - production licence 089. Awarded 1984. production licence Progress Government approval: December 1994 Production start-up: June 1997 Operator Saga Petroleum ASA Licensees Den norske stats oljeselskap a.s (SDFI 51 %) 58.22% (rounded to two Esso Expl & Prod Norway A/S 10.5% decimal places) Idemitsu Petroleum Norge AS 9.6% Norsk Hydro Produksjon a.s 8.4% Saga Petroleum ASA Elf Petroleum Norge AS 5.6% RWE-DEA Norce AS 2.8% Recoverable reserves Originally present: Remaining at 31.12.99: 33.3 mill scm oil 21.9 mill scm oil 2.3 bn scm cas 2.3 bn scm gas Production Estimated production in 2000: Oil: 78 000 barrels/day Investment Total investment is likely to be NOK 6.8 bn (2000 value). About NOK 5.1 bn (2000 value) had been invested at 31.12.99. Located between Snorre and Gullfaks.Vigdis was discovered in 1986. It has been developed with subsea installations in 280 metres of water tied back to the Snorre platform, where the petroleum is processed. Stabilised crude oil is transferred via a dedicated pipeline to Gullfaks A for storage and loading into tankers. 14 FIELDS IN PRODUCTION Visund Blocks and Block 34/8 and parts of block 34/7 - production licence 120. production licence Awarded 1985. Progress Government approval: March 1996 Production start-up: April 1999 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 49.6%) 62.9% Norsk Hydro Produksjon a.s 16.1% Elf Petroleum Norge AS 7.7% Norske Conoco A/S 9.1% Saga Petroleum ASA 4.2% Recoverable reserves Originally present: Remaining at 31.12.99: 48.5 mill scm oil 47.9 mill scm oil Production Estimated production in 2000: Oil: 52 000 barrels/day Investment Total investment is likely to be NOK 15.7 bn (2000 value). About NOK 10.2 bn (2000 value) had been invested at 31.,12.99. Operating organisation Bergen Main supply base Flor0 The Visund field, discovered in 1986, lies east of Snorre. A plan for development and operation submitted to the authorities in September 1995 called for a phased project based on a floating production facility, with oil stored in and shipped from Gullfaks C. The Storting approved these proposals on 29 March 1996. 14 FIELDS IN PRODUCTION 99 Oil: WOO b3rrels/day SNORRf -— -0.3 -0.6 // \ -0.4 // \ 7 \ -0.2 1992 '994 1996 199* Snorre 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 Saga Petroleum ASA Licensees Den norske stats oljeselskap a.s (SDFI 31.4%) 44,.40% (rounded to two Saga Petroleum ASA 8..72% decimal places) Esso Expl & Prod Norway A/S 11.16% Q OOO/ RWE-DEA Norge AS O.OO/O Idemitsu Petroleum Norge AS 9.60% Norsk Hydro Produksjon a.s 8.93% Elf Petroleum Norge AS 5.95% Amerada Hess Norge AS 1.18% Enterprise Oil Norwegian A/S 1.18% Recoverable reserves Originally present: Remaining at 31.12.99: 225.3 mill scm oil 153.8 mill scm oil 9.2 bn scm gas 5.9 bn scm gas 6 mill tonnes NGLs 4 mill tonnes NGLs Production Estimated production in 2000: Oil: 168 000 barrels/day Gas: 0.452 bn scm NGLs: 0.203 mill tonnes Investment Total investment, including Snorre II, is likely to be NOK 55.8 bn (2000 value). About NOK 39 bn (2000 value) had been invested at 31.12.99. Operating organisation Stavanger Main supply base Flor0 The Snorre field east of Statfjord was discovered in 1979. Its southern area has been developed with a tension leg platform and a subsea production system.This project covers about 150 mill scm of Snorre's recoverable oil reserves. A plan for development and ope- ration of the northern part of the field (Snorre II) was approved in June 1998.The water depth varies from 300-350 metres in this part of the field, increasing in a north-easterly direction. Oil and gas are piped to Statfjord for final processing, storage and export. 100 14 FIELDS IN PRODUCTION Oil: 1000 bsneis/day TORDIS Gas: bn son/year i X ———•~-~___ ^— 1994 1996 1998 Tordis Block and Block 34/7 - production licence 089. Awarded 1984. production licence Progress Government approval: May 1991 Production start-up: June 1994 Operator Saga Petroleum ASA Licensees Den norske stats oljeselskap a.s (SDF1 51%) 58.22% (rounded to two Esso Expl & Prod Norway A/S 10.5% decimal places) Idemitsu Petroleum Norge AS 9.6% Norsk Hydro Produksjon a.s 8.4% Saga Petroleum ASA 4.88% Elf Petroleum Norge AS 5.6% RWE-DEA Norge AS 2.8% Recoverable reserves Originally present: Remaining at 31.12.99: (incl Tordis East 47.7 mill scm oil 7.2 mill scm oil and Borg) 5.2 bn scm gas 1.3 bn scm gas 1.2 mill tonnes NGLs 0.2 mill tonnes NGLs Production Estimated production in 2000: Oil: 81 000 barrels/day Gas: 0.21 bn scm NGLs:0.13 mill tonnes Investment Total investment is likely to be NOK 6.9 bn (2000 value), About NOK 5.7 bn (2000 value) had been invested at 31. 12.99 Operating organisation Stavanger A/lain supply base Flor0 The Tordis area embraces Tordis East and Borg as well as Tordis itself. Lying between Snorre and Gullfaks,Tordis was discovered in 1987. A subsea development in about 200 metres of water is tied back to Gullfaks C, where the wellstream is processed. Tordis East and Borg have been developed with subsea-completed wells tied back to theTordis production facilities,and came on stream in July 1998 and July 1999 respectively. 14 FIELDS IN PRODUCTION 101 /1 \ / / Oseberg Blocks and Block 30/6 - production licence 053. Awarded 1979. production licences Block 30/9 - production licence 079. Awarded 1982. Progress Government approval: 1984 Production start-up: December 1988 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 50.78%) 64.78% (rounded to two Norsk Hydro Produksjon a.s 13.68% decimal places) Saga Petroleum ASA 8.55% Elf Petroleum Norge AS 5.77% Mobil Development of Norway AS 4.33% Total Norge AS 2.88% Recoverable reserves Originally present: Remaining at 31.12.99: 337 mill scm oil 71.5 mill scm oil 34 bn scm gas 34 bn scm gas 8 mill scm condensate 8 mill scm condensate Production Estimated production in 2000: Oil: 265 000 barrels/day Gas: 1.74 bn scm Condensate: 0.311 mill scm investment Total investment is likely to be NOK 62.9 bn (2000 value), About NOK 60.4 bn (2000 value) had been invested at 31. 12.99. Operating organisation Bergen Main supply base Mongstad 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 drilling and quarters platform with equipment for some processing. It stands roughly 16 km north of the field centre.Total processing capacity for Oseberg is about 500 000 barrels of oil per day. The platforms are in around 100 metres of water. 102 FIELDS IN PRODUCTION Gas for injection to maintain reservoir pressure is received by Oseberg from the Togi subsea module on Troll. In addition, gas from the Oseberg West satellite is injected in the phase II area. Oil from Oseberg is piped through the Oseberg Transport System (OTS) to Sture near Bergen. A revised plan for development and operation, which covers gas exports, was approved in December 1996. It calls for an additional platform tied to Oseberg A and B. Due to be piped to Germany via a new pipeline linking Oseberg with the Statpipe spur at Heimdal.gas deliveries are scheduled to start in October 2000. The Oseberg East and Oseberg South satellites will be tied back to the main field installations for processing. 14 FIELDS IN PRODUCTION 103 Oseberg East Slock and Block 30/6 - production licence 053. Awarded 1979. production licence Progress Government approval: October 1996 Production start-up: April 1999 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 45.4%) 59.40% (rounded to two Norsk Hydro Produksjon a.s 12.25% decimal places) Elf Petroleum Norge AS 9.33% Saga Petroleum ASA 7.35% Mobil Development of Norway AS 7.00% Total Norge AS 4.67% Recoverable reserves Originally present: Remaining at 31.12.99: 22.8 mill scm oil 21.9 mill scm oil 0.8 bn scm gas 0.8 bn scm gas Production Estimated production in 2000: Oil: 43 000 barrels/day Investment Total investment is likely to be NOK 4.9 bn (2000 value), About NOK 4 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Mongstad Located north-east of the unitised Oseberg field and south of Veslefrikk, Oseberg East is being developed with a platform in 160 metres of water for quarters, drilling and first- stage separation of oil, water and gas. Crude will be piped in a new line to Oseberg A for further processing and onward transport via the Oseberg Transport System (OTS) to Sture near Bergen. 104 14 FIELDS IN PRODUCTION Troll-Oseberg gas injection (Togi) Block and The Togi project has been undertaken by the Troll group. production licence Blocks and production licences 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 bn scm over 11-14 years. Investment Total investment is likely to be NOK 3.6 bn (2000 value). About NOK 3.6 bn (2000 value) had been invested at 31.12.99. The Togi module on Troll delivers injection gas to Oseberg and embraces five wells remotely operated from the latter field. Intended to improve oil recovery from Oseberg, the gas is transported in a 20-inch pipeline. 1 J aa r ' L >- " 0:'. We— ^P = L The Oseberg and Troll area (Source: Norwegian Petroleum Directorate} 14 FIELDS IN PRODUCTION 105 Oil: 1000 barreli/tey VESLEFStKK Gas: bn s t -1 -0-8 I -0.6 \ V -0.4 A iggo 1992 1994 1996 Veslefrikk Block and Block 30/3 - production licence 052. Awarded 1979. production licence Progress Government approval: June 1987 Production start-up: December 1989 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 37%) 55.00% Total Norge AS 18.00% RWE-DEA Norge AS 11.25% Petro-Canada Norge AS 9.00% Svenska Petroleum Exploration AS 4.50% Noreke RWE-DEA AS 2.25% Recoverable reserves Originally present: Remaining at 31.12.99: 54.5 mill scm oil 18.7 mill scm oil 9.6 bn scm gas 7.9 bn scm gas 1.3 mill tonnes NGLs 0.3 mill tonnes NGLs Production Estimated production in 2000: Oil: 54 000 barrels/day Gas: 0.204 bn scm NGLs: 0.127 mill tonnes Investment Total investment is likely to be NOK 14.8 bn (2000 value). About NOK 12.5 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Coast Center Base, Sotra and Flor0 Veslefrikk has been developed with the 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 Transport System (OTS) to the terminal at Sture near Bergen, while the gas travels via Statpipe/Norpipe to Emden.Veslefrikk B was taken to land in the summer of 1999 to reinforce its steel hull and for modifications to prepare the platform for processing gas from the Huldra field. 106 14 FIELDS IN PRODUCTION Oil: 1000 barrels/day BRACE Csi: bn scm/year „ /' \- f - .——-' 1993 1995 1997 1999 Brage Blocks and Block 30/6 - production licence 053. Awarded 1979. 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 HTydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 34.3%) 46.96% Norsk Hydro Produksjon a.s 24.44% Esso Expl & Prod Norway A/S 16.34% Fortum Petroleum AS 12.26% Recoverable reserves Originally present: Remaining at 31.12.99: 46.7 mill scm oil 12.5 mill scm oil 2.6 bn scm gas 1.1 bn scm gas 0.7 mill tonnes NGLs 0.2 mill tonnes NGLs Production Estimated production in 2000: Oil: 48 000 barrels/day Gas: 0.184 bn scm NGLs: 0.052 mill tonnes Investment Total investment is likely to be NOK 14 bn (2000 value). About NOK 13.5 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Mongstad The Brage field has been developed in 140 metres of water with an integrated steel pro- duction, drilling and quarters platform. Oil goes by pipeline to Oseberg A for onward transmission through the Oseberg Transport System (OTS) to the Sture terminal near Bergen, while gas is carried in a line tied to Statpipe for onward transport. 14 FIELDS IN PRODUCTION 107 Oil: 1000 barrels/day —_ / / Troll phase II Blocks and Block 31/2 - production licence 054. Awarded 1979. production licences Blocks 31/3,31/5 and 31/6 - production licence 085. Awarded in an extraordinary licensing round in 1983. The field was unitised in January 1987. Progress Government approval: May 1992 Production start-up: September 1995 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 62.93%) 76.80% (rounded to two Norsk Hydro Produksjon a.s 7.72% decimal places) A/S Norske Shell 8.10% Saga Petroleum ASA 2.06% Elf Petroleum Norge AS 2.35% Norske Conoco A/S 1.62% Total Norge AS 1.35% The division of interests is based on roughly 68% per cent of the reserves lying in production licence 085. Recoverable reserves Originally present: Remaining at 31.12.99: 195 mill scm oil 136.5 mill scm oil Gas reserves are included under Troll phase 1. Production Estimated production in 2000: Oil: 293 000 barrels/day. Investment Total investment is likely to be NOK 4!3.7 bn (2000 value), About NOK 39.2 bn (2000 value) had been invested at 31.12.99. Operating organisation Bergen Main supply base Mongstad 108 14 FIELDS IN PRODUCTION 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 12-14 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 pro- duction platform. All 18 of the production wells originally planned are now in operation. The crude is landed through Troll Oil Pipeline I to the terminal at Mongstad near Bergen. Associated gas is exported via Troll A on Troll East. Oil production from the first Troll B well cluster began in November 1997. At 31 December 1999,18 of 50 planned wells were producing in the gas province. The floating Troll C pro- duction platform came on stream in late October 1999 to recover oil from the northern part of the gas province. Nine wells were producing at 31 December 1999. Oil from Troll C is landed through the Troll Oil Pipeline II to Mongstad, with associated gas exported via Troll A. 14 FIELDS IN PRODUCTION 109 1 / / 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 in an extraordinary licensing round in 1983. The field was unitised in January 1987. Progress Government approval: December Production start-up: October 1996 Operator A/S Norsk Shell was operator for the development phase. Den norske stats oljeselskap a.s is operator for the production phase. Licensees Den norske stats oljeselskap a.s (SDFI 62.93%) 76.80% (rounded to two Norsk Hydro Produksjon a.s 7.72% decimai places) A/S Norske Shell 8.10% Saga Petroleum ASA 2.06% Elf Petroleum Norge AS 2.35% Norske Conoco A/S 1.62% Total Norge AS 1.35% The division of interests is based on roughly 68% per cent of the reserves lying in production licence 085. Recoverable reserves Originally present: Remaining at 31.12.99: 653 bn scm gas 588.1 bn scm gas 12.7 mill tonnes NGLs 12.7 mill tonnes NGLs Production Estimated production in 2000: Gas: 26.521 bn scm Oil: 12 000 barrels/day NGLs: 0.523 mill tonnes Investment Total investment is likely to be NOK 47.2 bn (2000 value). About NOK 39.5 bn (2000 value) had been invested at 31.12.99. Transport Gas from Troll will be 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 Sture. Operating organisation Bergen Main supply base Agotnes 110 14 FIELDS IN PRODUCTION Discovered in 1979, Troll lies in the North Sea off Bergen and comprises two main struc- tures: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.The NPD estimates that roughly two- thirds of the field's recoverable gas reserves are located in Troll East. A staged development has been pursued, with phase I covering gas reserves in the eastern region and phase II focusing on the oil reserves in Troll West. Phase III 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 Kollsnes near Bergen. The authorities approved these revised proposals in December 1990. Troll phase I supplies gas under the Troll gas sales agreements.The processing plant at Kollsnes could be expanded to handle production from a development of the gas reserves in Troll West. While part of the condensate is piped to Sture, condensate belonging to the majority of the Troll licensees is piped to the Vestprosess facility at Mongstad. 14 FIELDS IN PRODUCTION 111 Oil: 1000 barrets/day / 599 3000 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 Produksjon a.s Licensees Den noreke stats oljeselskap a.s (SDFI 30.C 50.0% Norsk Hydro Produksjon a.s 22.5% Mobil Development of Norway AS 20.0% Petro-Canada Norge AS 7.5% Recoverable reserves Originally present: Remaining at 31.12.99: 28.4 mill scm oil 22.8 mill scm oil Production Estimated production in 2000: Oil: 60 000 barrels/day. Investment Total investment is likely to be NOK 8.9 bn (2000 value). About NOK 7.7 bn (2000 value) had been invested at 31.12.99. Operating organisation Kristiansund Main supply base Kristiansund Njord was discovered in 1986 and lies about 30 km west of Draugen in the Norwegian Sea. 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. Plans call for Njord B to be remotely operated from the A platform.The water depth in the area is 330 metres. 112 14 FIELDS IN PRODUCTION y / / 1996 1999 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 Den norske stats oljeselskap a.s (SDFI 57.88%) 57.88% (rounded to two BP Amoco Norge AS 18.36% decimal places) A/S Norske Shell 16.20% Norsk Chevron AS 7.56% Recoverable reserves Originally present: Remaining at 31.12.99: 111.6 mill scm oil 58.4 mill scm oil Production Estimated production in 2000: Oil: 223 000 barrels/day Gas: 0.035 bn scm NGLs: 0.978 mill tonnes Investment Total investment is likely to be NOK 21.8 bn (2000 value), About NOK 18.8 bn (2000 value) had been invested at 31.12.99. Operating organisation Kristiansund Main supply base Kristiansund Draugen was discovered in 1984 and has been developed with a concrete monotower gravity base structure supporting an integrated topside. Reserves consist mainly of oil. Associated gas is currently injected back into the field, but the development of an export solution will tie Draugen to the Asgard Transport trunkline. Oil is loaded into shuttle tan- kers on the field via two flowlines which link the platform with a floating loading buoy. 14 FIELDS IN PRODUCTION 113 Oil: 1000 barrels/day H EIDRU N Gas: bn scm/yc. I i 1 I 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 Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 64.16%) 76.59% (rounded to two Norske Conoco A/S 18.29% decimal places) Fortum Petroleum AS 5.12% Recoverable reserves Originally present: Remaining at 31.12.99: 183.8 mill scm oil 132.9 mill scm oil 19.9 bn scm gas 18.3 bn scm gas 0.1 mill tonnes NGLs 0.1 mill tonnes NGLs Production Estimated production in 2000: Oil: 211 000 barrels/day Gas: 0.88 bn scm NGLs:0.028 mill tonnes Investment Total investment is likely to be NOK 47.5 bn (2000 value). About NOK 37.9 bn (2000 value) had been invested at 31.12.99. Operating organisation Stjordal Main supply base Kristiansund The Heidrun field was discovered in 1985 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) in some 350 metres of water. Heidrun's northern flank is being developed with subsea installations in order to phase in resources in this part of the field. A Heidrun gas export solution is under development, and will be tied to the Asgard Transport system. 114 14 FIELDS IN PRODUCTION its/day NOPNE __ Nome Blocks and Blocks 6508/10 and 1608/11 - production licence 128. Awarded 1986. production licences Block 6508/B - production licence 128B. Awarded 1998. Progress Government approval: March 1995 Production start-up: November 1997 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 55%) 79.0% (rounded to two Norsk Hydro Produksjon a.s 8.1% decimal places) Norsk Agip A/S 6.9% Enterprise Oil Norwegian A/S 6.0% Recoverable reserves Originally present: Remaining at 31.12.99: 80.4 mill scm oil 65.1 mill scm oil 15 bn scm gas 15 bn scm gas 1.1 mill tonnes NGLs 1.1 mill tonnes NGLs Production Estimated production in 2000: Oil: 175 000 barrels/day Gas: 0.375 bn scm NGLs: 0.035 mill tonnes Investment Total investment is likely to be NOK 13.8 bn (2000 value). About NOK 11 bn (2000 value) had been invested at 31.12.99. Operating organisation Harstad Main supply base Sandnessj0en Nome 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 trans- ferred over the stern to shuttle tankers. Nome needs an export solution for its associated gas, and plans for a pipeline tied to the Asgard Transport system have been submitted to the authorities. 14 FIELDS IN PRODUCTION 115 Asgard Blocks and Block6507/11 -production licence062.Awarded 1981.(6507/11-1 Midgard) production licences Block 6407/2 - production licence 074. Awarded 1982. (6507/11-1 Midgard) Block 6506/12 - production licence 094. Awarded 1984. (6506/12-1 Snwbukk and 6506/12-3 Sm0rbukk South) Block6506/11 -production licence 134. Awarded 1987.(6506/12-1 Sm0rbukk) Block 6407/3 - production licence 237. Awarded 1998. Progress Government approval: June 1996 Production start-up: 1999/2000 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 • i.95%) 60.50% (rounded to two Norsk Agip A/S 7.90% decimal places) Total Norge AS 7.65% Mobil Development of Norway AS 7.35% Fortum Petroleum AS 7.00% Saga Petroleum ASA 7.00% Norsk Hydro Produksjon a.s 2.60% Recoverable reserves Originally present: Remaining at 31.12.99: 64.6 mill scm oil 60.7 mill scm oil 198.1 bn scm gas 198.1 bn scm gas 28 mill tonnes NGLs 28 mill tonnes NGLs 49 mill scm condensate 49 mill scm condensate Production Estimated production in 2000: Oil: 159 000 barrels/day Gas: 1.37 bn scm NGLs: 0.07 mill tonnes Condensate: 0.99 mill scm Investment Total investment is likely to be NOK 43.8 bn (2000 value). About NOK 35.9 bn (2000 value) had been invested at 31.12.99. Asgard comprises the Midgard, Sm0rbukk and Sm0rbukk South discoveries, made in 1981, 1984 and 1985 respectively. Water depths are in the 240-300 metre range. The field is being developed with a production ship for oil and condensate, which came on stream in May 1999, and a floating gas platform scheduled to start production in 116 14 FIELDS IN PRODUCTION October 2000. Both gas and oil/NGLs will be produced from subsea wells. Rich gas will be piped to Karst0 north of Stavanger for processing and fractionation of the liquid components. Dry gas is due to be sent on from Karst0 through the Europipe 11 line. 5 "00 5 "20 5°4(l 6 "00 6 "20 6 "40 7°00 7°20 7 i 20 * 40 6"00 6°20 6°40 7"00 7"20 7°40 8°0« 8"20 Q 20 40 60 Km Fields and discoveries off mid-Norway (Source: Norwegian Petroleum Directorate) 14 FIELDS IN PRODUCTION 117 Fields under development Osebcrf; South Tune Huldi? Gullfaks satellites phase II Snoire II Sygna Oseberg South Blocks and Block 30/9 - production licence O79.Awarded 1982. production licences Block 30/9 - production licence 104.Awarded 1985. Block 30/9 - production licence 171. Awarded 1991. Progress Government approval: June 1997 Production start-up: February 2000 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDF1 38.36%) 56.58% Norsk Hydro Produksjon a.s 21.88% Saga Petroleum ASA 10.14% Norske Conoco A/S 7.70% Mobil Development of Norway AS 3.70% Recoverable reserves Oil: 53.5 mill scm Gas: 11.4 bn scm Production Planned plateau rate is 124 000 barrels/day oil and 1.06 bn scm gas Investment Total investment is likely to be NOK 9.6 bn (2000 value) Oseberg South was discovered in 1984 and comprises several structures south of the main Oseberg field. Water depths are about 100 metres. Development plans are based on a new platform for partial processing before the oil is piped to the Oseberg field centre for further treatment and onward transport to land through the Oseberg Transport System (OTS). Associated gas will be injected. Oil production began on Oseberg South in February 2000 using a well drilled from the Oseberg field centre. The Oseberg South platform is due to come on stream in September 2000. Tune Blocks and Block 30/4 - production licence 034. Awarded 1969. production licences Block 30/6 - production licence 053. Awarded 1979. Block 30/8 - production licence 190. Awarded 1993. Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 50%) 50% Norsk Hydro Produksjon a.s 30% Saga Petroleum ASA Elf Petroleum Norge AS 10% Total Norge AS 10% A/S Norske Shell Resources Gas:24bnscm Condensate: 6.1 mill scm NGLs: 0.1 mill tonnes 15 FIELDS UNDER DEVELOPMENT 119 Tune extends across three licences, with the bulk of the reserves concentrated in pro- duction licence 190. The field is being developed as a satellite to the Oseberg D platform. A plan for development and operation was approved by the authorities on 20 December 1999, with production scheduled to start in the autumn of 2002 and regular gas deliveries commencing on 1 October of that year. Huldra Blocks and Block 30/2 - production licence 051. Awarded 1979. production licences Block 30/3 - production licence 052. Awarded 1979. Progress Government approval: February 1999 Production start-up: October 2001 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 31.96%) 51.62% (rounded to two Total Norge AS 24.33% decimal places) Norske Conoco A/S 23.34% Petro-Canada Norge AS 0.50% Svenska Petroleum Exploration AS 0.21% Recoverable reserves Gas: 18.7 bn scm NGLs: 0.3 mill tonnes Condensate:7.4 mill Sm3 Production Planned plateau rate is 3.2 bn scm gas and 1.7 mill scm condensate Investment Total investment is likely to be NOK 5.9 bn (2000 value) Huldra was discovered in 1982. A plan for development and operation, submitted to the authorities in December 1997, calls for an unstaffed jack-up wellhead platform in 125 metres of water, tied back to processing facilities for condensate and gas. Huldra has been allo- cated a gas supply contract, with commercial deliveries due to start on 1 October 2001. Gullfaks satellites phase II Blocks and Block 34/10 - production licence 050/050B. Awarded 1978. production licences Block 33/12 - rights to that part of Rimfaks which extends into 33/12 have been acquired by the licensees of block 34/10. Progress Government approval: June 1998 Production start-up: October 2000 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 73%) 91% Norsk Hydro Produksjon a.s 9% Recoverable reserves See chapter 14, pages 95-96 (Gullfaks South and Rimfaks) 120 15 FIELDS UNDER DEVELOPMENT Production Planned plateau rate is 34 000 barrels/day oil, 4.8 bn scm gas and 0.5 mill tonnes NGLs Investment Total investment is likely to be NOK 7.2 bn (2000 value) The Gullfaks satellites phase II project embraces production and export of gas resources and associated liquids in the Gullfaks South and Rimfaks fields.This development involves subsea installations tied back to the Gullfaks A and C platforms. The gas will be processed to rich gas before being transported to Karst0 via a new rich gas line from Gullfaks which ties into Statpipe.Oil and condensate will be stabilised,stored and loaded from existing facilities on the platforms. The water depth in the area varies from 135 to 216 metres. Snorre II Blocks and Block 34/4 - production licence 057. Awarded 1979. production licences Block 34/7 - production licence 089. Awarded 1984. Progress Government approval: June 1998 Production start-up: August 2001 Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 31.4 44.40% Saga Petroleum ASA 8.72% Esso Expl & Prod Norway A/S 11.16% RWE-DEA Norge AS 8.88% Idemitsu Petroleum Norge AS 9.60% Norsk Hydro Produksjon a.s 8.93% Elf Petroleum Norge AS 5.95% Amerada Hess Norge AS 1.18% Enterprise Oil Norwegian A/S 1.18% Recoverable reserves See chapter 14 (Snorre) Production Planned plateau rate is 108 000 barrels/day oil Investment Total investment is likely to be NOK 14.2 bn (2000 value) Operating organisation Stavanger Main supply base Flor0 The Snorre II project covers development of the Snorre field's northern flank, and is based on a semi-submersible platform. Oil and gas will be piped to Statfjord B for storage and export. A plan for development and operation of Snorre II was submitted on 19 December 1997. 15 FIELDS UNDER DEVELOPMENT 121 Sygna Blocks and Block 33/9 - production licence 037. Awarded 1973. production licences Block 34/7 - production licence 089. Awarded Progress Government approval: April 1999 Production start-up: third quarter 2000 Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFl 39.45%) 54.73% (rounded to two Esso Expl & Prod Norway A/S 10.23% decimal places) Mobil Development of Norway AS 8.25% Norske Conoco AS 6.65% A/S Norske Shell 5.50% Saga Petroleum ASA 2.20% Idemitsu Petroleum Norge AS 4.32% Norsk Hydro Produksjon a.s 3.78% Elf Petroleum Norge AS 2.52% RWE-DEA Norge AS 1.26% Enterprise Oil Norwegian A/S 0.57% Recoverable reserves Oil: 9.3 mill scm Gas: 0.6 bn scm Investment Total investment is likely to be NOK 1.6 bn (2000 value) This discovery, made in 1996, straddles the boundary between production licences 037 and 089 near Snorre and Statfjord. Plans call for Sygna to be developed with a subsea production system tied back to Statfjord C. 122 15 FIELDS UNDER DEVELOPMENT Future developments • Dagny .ind Glitne • Volve • Sigyn • Gr.im: Vale • Skune • Byggve • rune • Kvitebjorn 34/7 25S (STUJ) • Gjoa • Kram • Mikkel • Kristin • Uivrans Trcstnkk • "lytihans • Heiclrun North • Snohvit • Ringhome Tambar • Otmen Lange • Sknrv Freja Blocks and Block 2/12 - production licence 113. Awarded 1985. production licences Operator Amerada Hess Norge AS Licensees Den norske stats oljeselskap a.s (SDFI 30%) 50% Amerada Hess Norge AS 50% Resources Oil: 2 mill scm NGLs: 0.1 mill tonnes Gas: 0.3 bn scm Discovered in 1987, Freja lies east ofValhall on the boundary with the Danish continental shelf. Development plans based on an unmanned wellhead platform in about 70 metres of water, tied back to Valhall or Denmark's Harald field, have been considered.They call for a joint development with the Danish Gert field. A development of Freja has been postponed because of unsatisfactory project economics. Dagny and Glitne Blocks and Block 15/6 - production licence 029. Awarded 1969. production licences Block 15/5 - production licence 048. Awarded 1977. Operator Den norske stats oljeselskap a.s (048) Esso Expl & Prod Norway A/S (029) Licensees PL 029 PL 048 Den norske stats oljeselskap a.s 68.9% (SDFI) (30.0%) Elf Petroleum Norge AS 21.8% Norsk Hydro Produksjon a.s 9.3% Esso Expl & Prod Norway A/S 100% Resources Dagny + 15/5-2 structures: Gas: 9.2 bn scm NGLs: 0.5 mill tonnes Condensate: 1.2 mill scm Glitne structure (15/5-5 and 6): Oil: 4-5 mill scm Dagny and the block 15/5-2 structures lie north of Sleipner West. A possible development solution involves a subsea production system tied back to the Sleipner A or T platform on Sleipner East when capacity becomes available on one or other of these installations. Dagny was discovered in 1978. Glitne.a small oil field, was found with well 15/5-5 during 1995 and appraised by 15/5-6 in 1997. Possible development solutions calls for a leasing concept (production ship or other mobile unit) or a tie-in to a future oil processing facility in the area. i6 FUTURE DEVELOPMENTS 125 Volve Block and Block 15/9 - production licence 046. Awarded 1976. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 34.4%) 52.6% Esso Expl & Prod Norway A/S 28.0% Elf Petroleum Norge AS 10.0% Norsk Hydro Produksjon a.s 9.4% Resources Oil: 5.2 mill scm Gas:0.8bnscm Proven in 1993,Volve (Theta West) lies in the Sleipner area. A possible development solution involves a wellhead platform tied back to a new processing facility under consideration for phasing in several oil fields in the Sleipner area. Sigyn Block and Block 16/7 - production licence 072. Awarded 1981. production licence Operator Esso Expl & Prod Norway A/S Licensees Den norske stats oljeselskap a.s (SDFI 30%) 50% Esso Expl & Prod Norway A/S 40% Norsk Hydro Produksjon a.s 10% Resources Gas: 5.8 bn scm NGLs: 2 mill tonnes Condensate: 4.7 mill scm Sigyn was proven in 1982 and lies in the Sleipner area. Sigyn will probably be developed with a simple solution, based on sending the unprocessed wellstream to a parent platform in the Sleipner area. Grane Block and Block 25/11 - production licences 001 and part of 169. production licences Awarded in 1965 and 1991 respectively. Operator Norsk Hydro Produksjon a.s Licensees PL 169 (part) PL 001 (after amending Den norske stats oljeselskap a.s 65% participating (SDFI 54.5%) interest) Norsk Hydro Produksjon a.s 28% Esso Expl & Prod Norway A/S 7% 100% 126 16 FUTURE DEVELOPMENTS Resources Oil: 112 millscm Discovered in 1991, Grane lies east of Balder in the North Sea. Oil in the field is heavy and complicated to recover. Production testing/early production have been pursued by the licensees to gain experience with the reservoir. Plans call for the field to be developed on the basis of an integrated production, drilling and quarters platform, with oil piped to Sture. Natural gas is due to be used as the drive mechanism for oil production. Since the field contains very little associated gas, injection volumes must be acquired elsewhere.The water depth is 127 metres.A plan for development and operation of Grane was submitted by the licensees for production licences 169 and 001 to the authorities for approval on 23 December 1999. Vale Block and Block 25/4 - production licence 036. Awarded 1971. production licence Operator Norsk Hydro Produksjon a.s Licensees Marathon Petroleum Norge A/S 46.90% (rounded to two Norsk Hydro Produksjon a.s 21.92% decimal places) Elf Petroleum Norge AS 18.70% Total Norge AS 5.54% Saga Petroleum ASA 6.61% AS Ugland Rederi 0.32% Resources Gas: 3 bn scm Condensate: 3.1 mill scm Provisional plans call for Vale to be developed with a subsea solution tied back to Heimdal. The discovery was made in 1991. A plan for development and operation is expected to be submitted to the authorities during 2000. Skirne Block and Block 25/5 - production licence 102. Awarded 1985. production licence Operator Elf Petroleum Norge AS Licensees Den norske stats oljeselskap AS (SDFI 30%) 50% Elf Petroleum Norge AS 20% Total Norge AS 20% Norsk Hydro Produksjon a.s 10% 16 FUTURE DEVELOPMENTS 127 Resources Gas: 4.3 bn scm Condensate: 0.9 mill scm Plans call for Skirne, proven in 1990, to be developed together with Byggve using a subsea installation tied back to Heimdal.A possible development depends on cost-effective phasing-in as a satellite to Heimdal. Byggve Block and Block 25/5 - production licence 102. Awarded 1985. production licence Operator Elf Petroleum Norge AS Licensees Den norske stats oljeselskap AS (SDF1 30%) 50% Elf Petroleum Norge AS 20% Total Norge AS 20% Norsk Hydro Produksjon a.s 10% Resources Gas: 2.6 bn scm Condensate: 0.7 mill scm Plans call for Byggve, proven in 1991, to be developed together with Skirne using a subsea installation tied back to Heimdal.A possible development depends on cost-effective phasing-in as a satellite to Heimdal. Kvitebj0rn Block and Block 34/11 - production licence 193. Awarded 1993. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF140%) 80% Norsk Hydro Produksjon a.s 15% Elf Petroleum Norge AS 5% Resources Gas: 47 bn scm Condensate: 17.2 mill scm NGLs: 0.4 mill tonnes KvitebJ0m was proven in 1994 and lies south of Gullfaks. Plans call for the field to be developed with a staffed wellhead platform carrying an integrated drilling package to separate gas and condensate for transport in separate pipelines to receiving facilities for further processing.The operator submitted a plan for development and operation in December 1999, with production due to start in 2004. 128 16 FUTURE DEVELOPMENTS 34/7 25S (STUJ) Block and Block 34/7 - production licence 089. Awarded 1984. production licence Operator Saga Petroleum ASA Licensees Den norske stats oljeselskap a.s (SDFI 51%) 58.22% Esso Expl & Prod Norway A/S 10.5% Idemitsu Petroleum Norge AS 9.6% Norsk Hydro Produksjon a.s Saga Petroleum ASA 4.8S Elf Petroleum Norge AS 5.6 RWE-DEA Norge AS 2.S Resources Oil: 2.3 mill scm Gas:0.2bnscm This discovery east of Tordis was made in 1996. Development is expected to comprise a subsea solution tied back to the Tordis facilities. Gj0a Blocks and Blocks 35/9 and 36/7 - production licence 153. Awarded 1988. production licence Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 30%) 50% Norsk Hydro Produksjon a.s 20% A/S Norske Shell 12% Saga Petroleum ASA 10% RWE-DEA Norge AS Resources Oil: 11.6 mill scm Gas: 16.8 bn scm NGLs: 0.6 mill tonnes The Gj0a field was proven in 1989 west of Flor0 and about 42 km north of Fram. A unitisation of resources in the Greater Sogn area is currently under consideration by the licensees. See the description for Fram below. l6 FUTURE DEVELOPMENTS 129 Fram Block and Block 35/11 - production licence 090. Awarded 1984. production licence Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDF! 30%) 50% Norsk Hydro Produksjon a.s 25% Mobil Development of Norway AS 25% Resources Oil: 32.5 mill scm NGLs: 0.8 mill tonnes Gas: 17.2 bn scm Fram was proven in 1987.The licensees have considered developing the field with a semi- submersible production, drilling and quarters platform. Oil production could be exported to Mongstad via Troll Oil Pipeline 11. However, unsatisfactory project economics for Fram mean that the partners in production licences 090 and 153, in cooperation with the licensees in production licence 153, have resolved to assess the viability of a unitised development of resources in the Greater Sogn area, which embraces production licence 090 (Fram), production licence 153 (Gj0a) and resources proven in production licence 248. On the basis of the studies carried out, the partners in the three production licences have resolved to mature two development solutions - a phased subsea development and a semi- submersible production, drilling and quarters platform. A final choice will probably be made during the summer of 2000. Mikkel Blocks and Block 6407/6 - production licence 092. Awarded 1984. production licences Block 6407/5 - production licence 121. Awarded 1986. Operator Den norske stats oljeselskap a.s Licensees PL 092 PL 121 Den norske stats oljeselskap a.s 50% 70% (SDFI) (30%) (40%) Norsk Hydro Produksjon a.s 10% 10% Mobil Development of Norway AS 40% 20% Resources Gas: 19.5 bn scm NGLs: 4.7 mill tonnes Condensate: 4.6 mill scm Oil: 1.6 mill scm Proven in 1987, Mikkel lies in 220 metres of water on Halten Bank East, about 40 km south of Asgard's Midgard deposit and 40 km north of Draugen. Development planning is under way with a view to commencing gas deliveries in 2002 or 2003. The production concept embraces a three-slot subsea template tied back either to Draugen for processing or to 130 i6 FUTURE DEVELOPMENTS the subsea installations on Midgard for onward transport to the Asgard B gas processing platform. Plans call for the rich gas to be piped through the Asgard Transport trunkline to Karst0 for separation of the NGLs. A development decision will depend in part on a sales solution for the gas. The earliest date for submitting a plan for development and operation is September 2000. Kristin Blocks and Block 6506/11 - production licence 134. Awarded 1987. production licences Block 6406/2 - production licence 199. Awarded 1993. Operator Den norske stats oljeselskap a.s Licensees PL 134 PL 199 Den norske stats oljeselskap a.s 53% 73% (SDFI) (25%) (45%) Saga Petroleum ASA 7% 12% Norsk Agip AS 30% Mobil Development of Norway AS 15% Total Norge AS 10% Resources Gas: 39.1 bn scm Condensate: 42.1 mill scm NGLs: 5.9 mill tonnes Kristin was discovered in 1997, and lies about 20 km south-west of Asgard's Sm0rbukk deposit.The discovery extends across production licences 134 and 199. Work is under way on a possible development of the fields in the area, with Kristin as a possible centre and other nearby discoveries - Ragnfrid,Lavrans and Erlend - phased in towards it. One concept under consideration is a floating production facility on Kristin with subsea tie-ins from other fields. Plans call for rich gas to be piped through Asgard Transport to a land terminal (Kollsnes/Karst0) for separation of NGLs, while condensate could be processed on the Asgard A production ship and loaded into shuttle tankers together with Asgard condensate. Development timing will depend on a sales solution for the gas.A plan for development and operation could be submitted in 2001 at the earliest. 16 FUTURE DEVELOPMENTS 131 Lavrans Block and Block 6406/2 - production licence 199. Awarded 1993. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 45%) 73% Saga Petroleum ASA 12% Mobil Development of Norway AS 15% Resources Gas: 62.5 bn scm Condensate: 29.1 mill scm NGLs: 9.4 mill tonnes Discovered in 1994-95, Lavrans lies about 20 km south of Asgard's Sm0rbukk deposit in 270-290 metres of water.The field could be developed together with Kristin and other fields in the area. One concept under consideration is a floating production facility on Kristin with subsea tie-ins from other fields. Plans call for rich gas to be piped through Asgard Transport to a land terminal (Kollsnes/Karst0) for separation of NGLs, while con- densate could be processed on the Asgard A production ship and loaded into shuttle tankers together with Asgard condensate. Development timing will depend on a sales solution for the gas. Trestakk Block and Block 6406/3 - production licence 091. Awarded 1984. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeseiskap a.s (SDFI 30%) 55% Mobil Development of Norway AS 33% Saga Petroleum ASA 12% Resources Oil: 8.6 mill scm Trestakk is a small oil field 10 km west of Tyrihans, which was discovered in 1986. Further development will be assessed together with other fields in the area. 132 16 FUTURE DEVELOPMENTS Tyrihans Block and Block 6407/1 - production licence 073. Awarded 1982. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 30%) 50.00% Total Norge AS 33.33% Norsk Hydro Produksjon a.s 16.67% Resources Condensate: 19.4 mill scm NGLs: 4 mill tonnes Gas: 23. bn scm This field comprises two structures -Tyrihans North and Tyrihans South - located about 40 km south of Asgard in roughly 285 metres of water. The Tyrihans South gas field was proven in 1983.Tyrihans North, which also contains oil, followed in 1984.The southern structure extends into block 6406/3 in production licence 091. A direct subsea tie-back to existing infrastructure on Asgard is being considered. Plans call for rich gas to be piped through the Asgard Transport system to a land terminal (Kollsnes /Karst0) for separation of the NGLs. Development timing will depend on spare capacity in existing infrastructure as well as a sales solution for the gas. Heidrun North Block and Block 6507/8 - production licence 124. Awarded 1986. production licence Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 64.16%) 76.59% Norske Conoco AS 18.29% Fortum Petroleum AS 5.12% Resources Oil: 4 mill scm This field lies about eight km north of the Heidrun platform, and was proven in 1990. The idea is to phase it into the Heidrun Unit via a subsea template. Heidrun North will be produced with water injection for pressure support. A plan for development and operation is due to be submitted in the first quarter of 2000. Drilling on Heidrun North is expected to start in August 2000. 16 FUTURE DEVELOPMENTS 133 Sn0hvit Blocks and Block 7120/5 - production licence 110. Awarded 1985. production licences Block 7121/5 - production licence 110. Awarded 1985. Block 7120/6 - production licence 097. Awarded 1984. Block 7121/4 - production licence 099. Awarded 1984. Operators Norsk Hydro Produksjon a.s is operator for production licence 097. Den norske stats oljeselskap a.s is operator for the other licences. Licensees PL 097 PL 099 PL 110 Den norske stats oljeselskap a.s 56.25% 50.0% 50.00% (SDF1) (30.00%) (30.0%) (30.0%) Norsk Hydro Produksjon a.s 22.50% 12.5% 16.67% Amerada Hess Norge AS 11.25% 8.33% RWE-DEA Norge AS 10.00% Total Norge AS 37.5% 20.000% Fina Production Licenses AS 5.00% Resources Oil: 20.8 mill scm NGLs: 5.7 mill tonnes Gas: 176.3 bn scm Condensate: 18.5 mill scm Discovered in 1984,Sn0hvit is the largest field proven on theTroms0 Patch in the Barents Sea. Its licensees are seeking liquefaction-based marketing solutions for gas reserves in this field as well as nearby Askeladd and Albatross, along with a solution for recoverable oil reserves. The earliest date when a development plan could be submitted to the authorities is December 2000. j 1 SI—u- i 1 I 1 i ' ' 7124/31 | 7 2 2&= 1 sS 1 tv ~D^7 20 ; "^— 2/72 A.O. [ ; 7120/71 As, d > j i '. ! : i Discoveries in the Barents Sea (Source: Norwegian Petroleum Directorate) 134 16 FUTURE DEVELOPMENTS Ringhorne Blocks and Block 25/11 - production licence 001. Awarded 1965. production licences Block 25/10 - production licence 028. Awarded 1969. Block 25/8 - production licence 027. Awarded 1969. Operator Esso Expl & Prod Norway A/S Licensees Esso Expl & Prod Norway A/S 100% Resources Oil: 30.4 mill scm Gas: 2.0 bn scm Production Oil will be produced together with output from Balder Investment Total investment will probably be NOK 8.2 bn (1999 value) Ringhorne comprises the Ringhorne and Forseti discoveries as well as seven smaller deposits in the area around the Balder development. These resources are due to be produced with water injection as pressure support. Plans call for Ringhorne to be developed with an integrated production, drilling and quarters platform tied back to the Balder production ship. This installation will be staffed during the drilling phase and would normally be unstaffed thereafter. In addition to the platform, five subsea wells tied back to the Balder ship are planned. Oil will be shipped by shuttle tanker from Balder. The licensee submitted a plan for development and operation of Ringhorne to the authorities for approval on 8 October 1999. Tambar Blocks and Block 1/3 - production licence 065. Awarded 1981. production licences Block 2/1 - production licence 019 B. Awarded 1977. Operator BP Amoco Norge AS Licensees BP Amoco Norge AS 55% Den norske stats oljeselskap a.s (SDFI 30%) 30% A/S Norske Shell 15% Resources Oil: 5.6 mill scm Gas: 1.5 bn scm NGLs: 0.3 mill tonnes Production Planned plateau production is 27 000 barrels/day oil Investment Total investment will probably be NOK 967 millioner (2000 value) Plans call for Tambar to be developed with an unstaffed wellhead platform remotely operated from Ula. Production from the field will be exported to Ula for processing and onward transport. From Ula, the oil will be piped via Ekofisk to Teesside in the UK. A plan for development and operation is due to be submitted to the authorities in 2000. 16 FUTURE DEVELOPMENTS 135 Ormen Lange Blocks and Block 6304/9 and 6305/7 - production licence 208. Awarded 1996. production licences Blocks 6305/1, 2, 3 and 4 - 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 PL 208 PL 209 PL 250 Den norske stats oljeselskap a.s 30.00% 50.00% 53.87% (SDF1) (30%) (35%) (45%) Norsk Hydro Produksjon a.s 25.00% 14.78% Esso Exploration and Production Norway A/S 10% 5.91% BP Amoco Norge A/S 45.00% 9.44% A/S Norske Shell 25.00% 15.00% 16.00% Resources Gas: 314.7 bnscm Proven in 1997, the Ormen Lange gas discovery extends across production licences 208, 209 and 250. It lies about 140 km west of Kristiansund.Two wells have been drilled in the field. Preliminary resource assessments indicate that Ormen Lange is Norway's second largest offshore gas discovery. Production will probably begin in 2006. Skarv Blocks and Block 6507/5 and 6 - production licence 212. Awarded 1996 production licence Operator BP Amoco Norge AS Licensees BP Amoco Norge AS 30% Den norske stats oljeselskap a.s (SDF1 30%) 30% Enterprise Oil Norwegian A/S 25% Mobil Development of Norway AS 15% Resources Oil: 18.3 mill son Gas: 29.9 bn scm Skarv lies about 200 km off the Norwegian coast.The operator's estimates for resources in the field remain very uncertain, and work is continuing on the results of an appraisal well completed in the autumn of 1999.The adjacent acreage has been put on offer in the 16th offshore licensing round. 136 16 FUTURE DEVELOPMENTS Pipelines and land facilities Pipelines N.irpipe • Fiigg Transport • f-rostpipe • Slcipner F.:ist condensate Statpipe • Zeepipe • Europipp I • Tioll Oil Pipeline I Troll Oil Pipeline il • Oseberg Transport Sysltm (OSF) Oseberg Gas Transport (OCT) • Haltcnpipo • Franpipe Euiopipe il • AsgaidTianspoit • Nome- G.is Fxport Heidtuti das txpott • Orangen Ca> Fxpott Land facilities KarstO g.^s ttPdtnic-nl and cotuiensdte fncilities Katsto inetenng drul technology labontoiy Bygnes Inffic control centre • Kolisncs gas t re-.11 mont pinnt Ijeldbergociclen industrial conipltx Sture crude oil terminal • Vestprosess — Gas pipeline, existing/decided — - Planned gas pipeline Belgium — Oil/condensate pipeline Figure 17.1 shows existing and planned pipelines in the North and Norwegian Seas.This chapter provides a more detailed description of pipelines on the Norwegian continental shelf. The transport capacities given are based on standard assumptions about pressure ratios, energy content of the gas, buyer options for varying daily deliveries, maintenance periods and operational flexibility. 17 PIPELINES AND LAND FACILITIES 139 Norpipe: Norpipe Oil AS Operator Phillips Petroleum Norsk A/S Licensees Phillips Petroleum Norsk AS 35.05% Fina Exploration Norway S.C.A 28.44% Den norske stats oljeselskap a.s 20.00% Norsk Agip A/S 6.52% Elf Petroleum Norge AS 4.47% Norsk Hydro Produksjon a.s 3.35% Total Norge AS 2.02% Saga Petroleum ASA 0.15% The SDFI will receive a five per cent interest in Norpipe Oil AS on 15 October 2005 through a similar reduction in the equity interst held by Den norske stats oljeselskap a.s in the company. Norpipe: Norsea Gas A/S Operator Phillips Petroleum Norsk AS until about 2000, then Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s 50.00% Phillips Petroleum Norsk AS 15.89% Fina Exploration Norway S.C.A 12.90% Norsk Agip A/S 8.62% Elf Petroleum Norge AS 5.60% Norsk Hydro Produksjon a.s 4.43% Total Norge AS 2.36% Saga Petroleum ASA 0.20% The SDFI will receive a 20 per cent interest in Norsea Gas A/S on 15 October 2005, and a further 20 per cent on 1 October 2007. Other interests in the company will be reduced proportionally The equity interest of Den norske stats oljeselskap a.s in Norsea Gas A/S will be 40 per cent on 15 October 2005 and 30 per cent on 1 October 2007. Investment Total investment is likely to be NOK 40 bn (2000 value) Operating life Both pipelines have been designed for an operating life of at least 30 years. Extending the technical life of the pipelines is under consideration. Capacity Design capacities are about 19 bn scm/year (59.3 mill scm/day) for the gas line and around 53 mill scm/year (900 000 barrels/day) for the oil line, which includes the use of friction-inhibiting chemicals. Operating organisation Stavanger 140 17 PIPELINES AND LAND FACILITIES 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 Norpipe has installed four compressors. Two riser platforms, each with three compressors, are positioned on the German continental shelf to pump the gas southwards. 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 has since been tied directly to Norpipe downstream from Ekofisk with the aid of a bypass line. 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 atTeesside.A tie-in point for UK fields is located about 50 km downstream of Ekofisk.Two riser platforms, each with three pumps, were abandoned in 1983 and early 1987 respectively. Two British-registered companies, Norsea Pipeline Ltd and Norpipe Petroleum UK Ltd, own the oil export port and fractionation plant for extracting NGLs in Teesside, and are operated by Phillips Petroleum Company UK. The oil pipeline carries crude from the Ekofisk fields as well as from Valhall, Hod, Ula and Gyda. It also transports production from Britain's J block and Fulmar field. Frigg Transport Operator Total Oil Marine UK Progress The Norwegian pipeline was completed in 1977 and put into service in August 1978. Its licence was awarded in 1974 and expires in 2003, while the UK pipeline licence expires in 2O26.The production licence for the Norwegian part of Frigg expires in 2015. Licensees Norsk Hydro Produksjon a.s 32.87% Den norske stats oljeselskap a.s 29.00% Elf Petroleum Norge AS 21.42% Total Norge AS 16.71% Investment Total investment in the Norwegian Frigg pipeline and the Norwegian share of MCP01 is about NOK 25.5 bn (2000 value) Operating life The licence expires in 2003 Capacity 33 mill scm/day.At present limited to 18 mill scm/day because of Fr0y (British pipeline: 33 mill scm/day). Operating organisation St Fergus, UK 17 PIPELINES AND LAND FACILITIES 141 The gas transport system from Frigg to St Fergus in Scotland comprises two 32-inch pipelines and a receiving terminal on land, but not the field processing and compression facilities on Frigg.The Norwegian-owned line runs for 350 km, and currently carries gas from Frigg, Lille-Frigg and Fr0y as well as Britain's Piper, Tartan and Galley fields. While the UK pipeline was completed in the summer of 1976, the Norwegian facility was ready the following year and came into service in August 1978. Although the lines are owned by the Norwegian and UK Frigg groups respectively, they are both operated by Total Oil Marine UK. Frostpipe Operator Elf Petroleum Norge AS Licensees Den norske stats oljeselskap a.s (SDFI 30%) 50.00% Elf Petroleum Norge AS 22.00% Total Norge AS 14.25% Norsk Hydro Produksjon a.s 13.75% Progress The pipeline was put into service in April 1994 Investment Total investment is likely to be NOK 0.8 bn (2000 value) Operating life The licence expires in 2016 Capacity About 100 000 barrels/day 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. Initially intended to provide a transport solution for liquids from Lille-Frigg and Fr0y, the system has the capacity to pipe volumes from new discoveries in the area. The 16-inch pipeline is about 82 km long. Liquids are piped on from Oseberg via the Oseberg Transport System (OTS). Sleipner East condensate Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 29.6%) 49.6% Esso Expl & Prod Norway A/S 30.4% Norsk Hydro Produksjon a.s 10.0% Elf Petroleum Norge AS 10.0% Investment Total investment is likely to be NOK 4.3 bn (2000 value) 142 17 PIPELINES AND LAND FACILITIES Capacity 200 000 barrels/day Operating organisation Bygnes, Karm0y The decision to land condensate from Sleipner East at Karst0 north of Stavanger rather than atTeesside 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 Karst0 complex. Unprocessed condensate from Sleipner East began to flow through the 245-km pipeline in 1993. At Karst0, it is fractionated into NGLs and stabilised condensate for the market. With a daily capacity is 200 000 barrels, this line also began carrying condensate from Sleipner West, Loke and Gungne in 1997. Statpipe Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s 58.25% Elf Petroleum Norge AS 10.00% Norsk Hydro Produksjon a.s 8.00% Mobil Development of Norway AS 7.00% Esso Expl & Prod Norway A/S 5.00% A/S Norske Shell 5.00% Norske Conoco A/S 2.75% Total Norge AS 2.00% Saga Petroleum ASA 2.00% Investment Total investment is likely to be NOK 24.4 bn (2000 value) excl Karst0 Operating life Designed to operate for 30 years Capacities Rich gas pipeline Statfjord-Karst0:25-26 mill scrn/day (about eight bn/year). Karst0 terminal: roughly 25 mill scm/day (about eight bn/year). Dry gas pipeline Draupner S-Ekofisk: 53 mill scm/day (about 17 bn scm/year). Capacities vary to a large extent in accordance with rich gas composition and pressure in Statpipe and downstream of the line. Operating organisation Bygnes, Karm0y This 880-km pipeline system includes a riser platform and a receiving facility at Karst0 north of Stavanger. Statpipe is tied to the Statfjord, Gullfaks.Tordis, Snorre, Brage.VesIefrikk and Heimdal fields. Rich gas from fields in the northern part of Norway's North Sea sector - Statfjord, Gullfaks and the Oseberg area - is piped to Karst0 for separation and fractionation of the NGLs into commercial products, which are exported by ship.The residual dry gas continues in a 28-inch pipeline to the Draupner S riser platform and on to Emden via Ekofisk. Heimdal is connected to Statpipe via a 36-inch line to Draupner S. Work on the project began in 198LA 25-year licence was awarded from the start of operation in October 1985 to 1 January 2011. Den norske stats oljeselskap a.s is operator for the I/S Statpipe partnership. 17 PIPELINES AND LAND FACILITIES 143 Zeepipe Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 55%) 70.0% Norsk Hydro Produksjon a.s 8.0% A/S Norske Shell 7.0% Esso Expl & Prod Norway A/S 6.0% Elf Petroleum Norge AS 3.3% Saga Petroleum ASA 3.0% Norske Conoco A/S 1.4% Total Norge AS 1.3% Investment Total investment is likely to be NOK 15.3 bn (2000 value) Operating life Zeepipe is designed to operate for 50 years Capacity Some 13 bn scm/year for the Sleipner-Zeebrugge line Operating organisation Bygnes, Karm0y 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 II 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 station in Zeebrugge belongs to a separate partnership, with the Zeepipe group holding 49 per cent and Distrigaz 51 per cent. Operated by Den norske stats oljeselskap a.s, this facility is built and operated as an integral part of Zeepipe. Europipe I Operator Den norske stats oljeselskap a.s Licensees As for Zeepipe Investment Total investment is likely to be NOK 17.5 bn (2000 value) Operating life Europipe I is designed to operate for 50 years Capacity Some 17 bn scm/year Operating organisation Bygnes, Karm0y 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. Europipe I came into service in 1995. 144 17 PIPELINES AND LAND FACILITIES Troll Oil Pipeline I Operator Den norske stats oljeselskap a.s Licensees As for the Troll field Investment Total investment is likely to be NOK 0.9 bn (2000 value) Operating life Troll Oil Pipeline I is designed to operate for 35 years Capacity 42 500 scm oil/day (265 000 barrels/day), equivalent to the processing capacity of Troll B. Operating organisation Bygnes, Karm0y This 85-km facility transports oil from the Troll B platform to the terminal at Mongstad near Bergen. With the 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 - owned in the same proportions as the field - to handle operation of the line. Troll Oil Pipeline II Operator Norsk Hydro Produksjon a.s Licensees As for the Troll field. Same partnership as Troll Oil Pipeline 1 Investment About NOK 0.7 bn (2000 value) Operating life Troll Oil Pipeline II is designed for a lifetime of 35 years Capacity 47 500 scm oil per day Operating organisation Bygnes, Karm0y A 20-inch pipeline has been built to carry oil over the 80 km from Troll C to the terminal at Mongstad near Bergen. The plan for installation and operation was approved in March 1998, and Troll Oil Pipeline II was ready to begin operation when Troll C started production on 1 November 1999. This line is licensed to 2023. 17 PIPELINES AND LAND FACILITIES 145 Oseberg Transport System (OTS) Operator Norsk Hydro Produksjon a.s Progress The pipeline was laid in 1987, the system was ready for start-up in 1988, and first oil arrived at Sture on 20 December of the same year. Licensees As for the Oseberg field Investment Total investment is likely to be NOK 6.4 bn (2000 value) Capacity 765 000 barrels/day (technical), 990 000 scm (storage) Operating life The pipeline is designed to operate for 40 years. This may be extended. Operating organisation Bergen Oil from Oseberg is piped for 115 km in a 28-inch pipeline from the field's A platform to the terminal at Sture near Bergen.The Oseberg group has established a separate partnership, owned in the same proportions as the unitised field, to operate the line.This partnership has concluded agreements with the licensees for Veslefrikk, Brage, Lille-Frigg, Fr0y Oseberg South, Oseberg East,Tune and Huldra to transport oil from these fields via Oseberg A and the OTS to Sture. Oil and NGLs from Fr0y are piped through Frostpipe from the TCP2 platform on Frigg to Oseberg A. Oseberg Gas Transport (OGT) Operator Norsk Hydro Produksjon a.s Licensees Den norske stats oljeselskap a.s (SDFI 50.8%) 64.78% Norsk Hydro Produksjon a.s 13.68% Saga Petroleum ASA 8.55% Elf Petroleum Norge AS 5.77% Mobil Development of Norway AS 4.33% Total Norge AS 2.88% Investment Total investment is likely to be NOK 1.6 bn (2000 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 will tie to Statpipe at the Heimdal platform, was submitted by the field licensees in 1996. The authorities approved these proposals on 11 May 1999. While this 36-inch line is primarily intended for gas from Oseberg, it will have spare capacity to transport supplies from other sources. Running 108 km, it is due to come into service in 2000. 146 17 PIPELINES AND LAND FACILITIES Haltenpipe Operator Den norske stats oljeselskap a.s Progress Government approval to install and operate Haltenpipe was given in February 1992. Laying began in 1994, and the line came into operation in November 1996. Licensees As for the Heidrun field Investment Total investment is likely to be NOK 2.3 bn (2000 value) Operating life The licence expires on 31.12.2000 Capacity Minimum 2.2 bn scm/year of gas This 16-inch gas pipeline runs for 245 km from Heidrun on the Halten Bank in the Norwegian Sea to Tjeldbergodden in mid-Norway where Statoil and Conoco/Du Pont have built a methanol plant. The latter will use Heidrun gas as feedstock. Annual gas supplies to the methanol plant will total some 0.7 bn scm. Franpipe Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 60%) 69.71% Norsk Hydro Produksjon a.s 6.47% Saga Petroleum ASA 5.18% Esso Norge a.s 3.88% Mobil Development of Norway AS 3.88% Total Norge AS 2.91% Elf Petroleum Norge AS 2.14% Norsk Agip A/S 1.94% A/S Norske Shell 1.29% Fortum Petroleum AS 1.29% Norske Conoco A/S 1.29% Investment Total investment is put at roughly NOK 8 bn (2000 value), including a receiving facility in Dunkerque Operating life Technical operating life is 50 years. The licence expires in 2020 Capacity About 15 bn scm/year Installation and operation of a 42-inch gas pipeline from the Draupner E riser platform in the North Sea to a receiving terminal at Dunkerque in France was approved by the MPE in 1995.The interests listed above could change before 1 October 2000. A separate partner- ship has been established for the terminal, with the Franpipe group holding a 65 per cent interest and Gaz de France 35 per cent. With an overall pipeline length of 840 km, 17 PIPELINES AND LAND FACILITIES 147 the system was completed in 1998. Den norske stats oljeselskap a.s and the Franpipe group were also responsible for establishing a 36-inch direct link - the Ekofisk bypass - between the Statpipe and Norpipe gas pipelines at a total cost of NOK 400 mill.The bypass started up in 1998. Europipe Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 60%) 60.01% Norsk Hydro Produksjon a.s 4.72% Saga Petroleum ASA 10.63% A/S Norske Shell 1.18% Esso Exploration and Production Norway AS 7.68% Elf Petroleum Norge AS 0.01% Total Norge AS 5.91% Norske Conoco A/S 2.66% Mobil Development of Norway AS 1.18% Fortum Petroleum AS 3.66% Norsk Agip A/S 2.36% Investment Total investment is put at NOK 7.8 bn (2000 value) Operating life Technical operating life is 50 years. The licence expires in 2020 Capacity About 18 bn scm/year The plan for installation and operation of a 42-inch pipeline running for 650 km from Karst0 north of Stavanger to the existing landfall facilities near Dornum in Germany was approved by the MPE in 1996. This line started up on 1 October 1999. The interests listed above could change before 1 October 2000. Asgard Transport Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDFI 46.95%) 60.50% Saga Petroleum ASA 9.00% Norsk Agip A/S 7.90% Total Norge AS 7.65% Mobil Development of Norway AS 7.35% Fortum Petroleum AS 5.00% Norsk Hydro Produksjon a.s 2.6 Investment Total investment is likely to be NOK 8.7 bn (2000 value) Operating life Technical operating life is 50 years.The licence expires on 31.12.2020 148 17 PIPELINES AND LAND FACILITIES Capacity Potential capacity is about 20.5 bn scm/year Installation and operation of a 42-inch pipeline running the 730 km from Asgard in the Norwegian Sea to Karst0 north of Stavanger received final approval from the MPE in 1998. This line is due to start up in 2000 In addition to Asgard gas, this 730-km system is expected to carry production from other fields off mid-Norway. The interests listed above could change before the planned start-up of Asgard Transport. Nome Gas Export Operator Den norske stats oljeselskap a.s Licensees Den norske stats oljeselskap a.s (SDF1 55.00%) 70.0% Saga Petroleum ASA 9.0% Norsk Hydro Produksjon a.s 8.1% Norsk Agip A/S 6.9% Enterprise Oil Norwegian A/S 6.0% Investment Total investment is put at roughly NOK 1.5 bn (2000 value) Operating life The technical operating life is 50 years Capacity About 3.6 bn scm/year This 16-inch pipeline will run roughly 130 km from Nome to tie to the Asgard Transport system. Joint pigging with Heidrun Gas Export is planned.The authorities received a plan for installation and operation of Nome Gas Export in 1997, plus a supplement to this in April 1999, and are expected to consider these proposals during the first half of 2000. Plans call for the line to begin operating on 1 October 2000. Heidrun Gas Export Operator Den norske stats oljeselskap a.s Licensee Den norske stats oljeselskap a.s (SDF1 65.00%) 76.87% Norske Conoco AS 18.13% Fortum Petroleum AS 5.00% Investment Total investment is put at NOK 0.9 billion (2000 value) Operating life The technical operating life is 50 years Capacity About 4 bn scm/year This 16-inch pipeline will run about 37 km from Heidrun to tie to the Asgard Transport system. Joint pigging with Nome Gas Export is planned.The authorities received a plan 17 PIPELINES AND LAND FACILITIES 149 for installation and operation of Heidrun Gas Export in 1997, plus a supplement to this in April 1999, and are expected to consider these proposals during the first half of 2000. Plans call for the line to begin operating on 1 October 2000. Draugen Gas Export Operator A/S Norske Shell Licensees Den norske stats oljeselskap a.s (SDFI 57.88%) 57.88% BP Amoco Norge AS 18.36% AS Norske Shell 16.20% Norsk Chevron AS 7.56% Operating life The technical operating life is about 50 years Capacity About 2 bn scm/year Investment Total investment is put at roughly NOK 0.9 bn (2000 value) A plan for installation and operation of Draugen Gas Export was submitted to the MPE in May 1999. The 16-inch pipeline to Asgard Transport will be 75 km long. The authorities are expected to consider the plan during the first half of 2000. Start-up is planned for 1 October 2000. Karst0 gas treatment and condensate facilities Karst0 production Propane: 1 832 938 tonnes, iso-butane: 399 654 tonnes, in 1998 normal butane: 708 550 tonnes, naphtha: 228 146 tonnes, condensate: 3 759 342 tonnes, lean gas: 5.8 bn scm Interests Interests in the Karst0 gas treatment and condensate facilities are the same as for Statpipe The Karst0 gas treatment and condensate plants north of Stavanger form part of the Statpipe system.This complex receives rich gas from Statfjord.Statfjord North and East.Gullfaks, Borg.Snorre, Brage.Tordis and Veslefrikk as well as condensate from the Sleipner fields. Arriving in the Statpipe trunkline, rich gas is processed to remove the NGLs for fractionation. Residual lean gas can be piped through Statpipe to the Draupner S riser platform and on to Emden in Germany, or through Europipe II from Karst0 to Dornum near Emden. NGLs, naphtha and condensate are stored in tanks before being exported in liquid form by ship. The complex receives more than 400 vessel calls every year. Treatment facilities comprise two fractionation/distillation trains for methane (lean gas), ethane, propane, butanes and naphtha, plus a fractionation line for stabilising condensate. 150 17 PIPELINES AND LAND FACILITIES Work is now under way on expanding the Karst0 facilities. Rich gas from Asgard and other fields will start arriving in October 2000 via the Asgard Transport trunkline.Two new fractionation/distillation trains are under construction to handle these deliveries. A new propane store will also be brought into service. Plans have been drawn up for minor modifications to increase capacity in the gas treatment facilities from October 2002. Capacity in the existing treatment plant is 25 mill scm per day (about eight bn scm/year), and the new facility will be able to handle up to 39 mill scm per day.The condensate plant can process roughly 3.6 mill tonnes per year. Karst0 metering and technology laboratory The Karst0 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, totals NOK 128 mill (1999 value). The K-lab is wholly owned by Den norske stats oljeselskap a.s. Bygnes traffic control centre Interests Interests in the Bygnes control centre are the same as for Statpipe The traffic control centre at Bygnes north of Stavanger coordinates gas transport and deliveries through the pipeline network from producers in the North Sea to buyers in continental Europe. It is responsible for operating about 4 500 km of pipelines which transport some 90 per cent of Norwegian gas flowing to European customers. Kollsnes gas treatment plant Interests Interests in the Kollsnes gas treatment plant are the same as for the Troll field The Kollsnes gas treatment plant near Bergen is part of the Troll Gas facilities, which also include Troll A and the pipelines linking this platform with the treatment plant. Construction work began at Kollsnes in 1991 and was completed by 1 October 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. Part of the condensate is stabilised and piped to the crude oil terminal 17 PIPELINES AND LAND FACILITIES 151 at Sture, while the condensate owned by the majority of the Troll partners is piped to the Vestprosess facility at Mongstad. The gas treatment plant has been dimensioned to handle 100 mill scm of gas and 3 500 scm of condensate per day. Plans have been drawn up for minor modifications to increase capacity in the gas treatment plant, which will allow it to process possible gas from the Kvitebj0rn field. Tjeldbergodden industrial complex Ownership of Statoil Metanol ANS: the Tjeldberg- Den norske stats oljeselskap a.s 81.875% odden plants Norske Conoco A/S 18.125% Plans by Den norske stats oljeselskap a.s and Norske Conoco A/S to utilise gas from Heidrun as feedstock for methanol production at Tjeldbergodden in mid-Norway were approved by the Storting (parliament) in 1992.The methanol plant began production on 5 June 1997. Gas deliveries through the Haltenpipe line total 700 mill scm per year, which yields 830 000 tonnes of methanol. An air separation plant -Tjeldbergodden Luftgassfabrikk DA - has been built in association with the methanol facility. This partnership has also constructed a small gas fractionation and liquefaction plant with an annual capacity of 35 mill scm. Norferm a.s, owned 50-50 by Den norske stats oljeselskap a.s and Nycomed Amersham, began producing bioproteins at Tjeldbergodden in the winter of 1998-99. With an annual production capacity of 10 000 tonnes, this plant consumes 25 mill scm of methane per year. That corresponds to three per cent of the gas received from Heidrun. 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 systems 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, Lille-Frigg, Fr0y, Oseberg South, Oseberg East,Tune and Huldra.This oil is carried in a 115-km pipeline from Oseberg A.The terminal began operating in December 1988. It incorporates two jetties able to berth oil tankers up to 300 000 tonnes and six storage tanks with a combined capacity of one million scm. A separate unit for recovering volatile organic compounds given off from tankers has been installed. In March 1998, the govern- ment approved an upgrading of the facility. 152 17 PIPELINES AND LAND FACILITIES A fractionation plant which came on line in December 1999 receives unstabilised crude from Oseberg and processes it to stabilised oil and a liquefied petroleum gas mix. The latter can either be exported by ship or piped through the Vestprosess line to the Mongstad refinery. Oil from Grane will be piped to Sture through a dedicated pipeline when this field comes on stream. Vestprosess Ownership of Den norske stats oljeselskap a.s (SDFI41%) 58% the Vestprosess Saga Petroleum ASA 17% facilities Mobil Development of Norway AS 10% A/S Norske Shell 8% Total Norge AS 5% Norske Conoco A/S 2% The Vestprosess DA partnership was established in October 1997 with the aim of financing, building, operating and owning a system to transport condensate and NGLs from Kollsnes and Sture to Mongstad, and a new NGL facility at the Mongstad refinery. The Vestprosess facilities came on stream in December 1999.They will initially carry Troll condensate from Kollsnes and Oseberg NGLs from Sture to Mongstad for further processing. The first step involves separating naphtha from the liquefied petroleum gases to serve as refinery feed- stock, while the LPG will be fractionated into propane and butane in the new Vestprosess plant. Propane and butane are due to be stored in newly-excavated rock caverns before export.The Vestprosess plant will use waste energy and utilities from the refinery. 17 PIPELINES AND LAND FACILITIES 153 Licence interests on the Norwegian continental shelf •ID? MUM Relinquishment of production licences: Production licences 009,11,030,31,032,069,070,101,115,117,157,181,188,198,214. Transfers in 1999 Licence From: To: Share: 018 Phillips Petroleum Norsk A/S 1.848 018 Fina Production Licenses AS 1.500 018 Norsk Agip A/S 0.652 018 Elf Petroleum Norge AS 0.423 018 Norsk Hydro Produksjon a.s 0.335 018 Total Norge AS 0.117 018 Saga Petroleum ASA 0.015 018 Den norske stats oljeselskap a.s 4.950 018 B Phillips Petroleum Norsk A/S 1.848 018 B Fina Production Licenses AS 1.500 018 B Norsk Agip A/S 0.652 018 B Elf Petroleum Norge AS 0.423 018 B Norsk Hydro Produksjon a.s 0.335 018 B Total Norge AS 0.117 018 B Saga Petroleum ASA 0.015 018 B Den norske stats oljeselskap a.s 4.950 019 C Norske Moeco A/S BP Amoco Norge AS 4.222 019 C Norske Moeco A/S AS Pelican 0.778 031 Fina Production Licenses AS Phillips Petroleum Norsk A/S 22.174 031 Fina Production Licenses AS Norsk Agip A/S 7.826 035 A/S Norske Shell Norsk Hydro Produksjon a.s 100.000 037 Saga Petroleum ASA Den norske stats oljeselskap a.s 1.875 050 Saga Petroleum ASA Den norske stats oljeselskap a.s 6.000 050 B Saga Petroleum ASA Den norske stats oljeselskap a.s 6.000 053 B Elf Petroleum Norge AS Norsk Hydro Produksjon a.s 9.333 053 B Saga Petroleum ASA Norsk Hydro Produksjon a.s 7.350 053 B Mobil Development of Norway AS Norsk Hydro Produksjon a.s 7.000 053 B Total Norge AS Norsk Hydro Produksjon a.s 4.667 066 Saga Petroleum ASA Amerada Hess Norge AS 25.000 066 Den norske stats oljeselskap a.s Amerada Hess Norge AS 20.000 066 BP Amoco Norge AS Amerada Hess Norge AS 5.000 085 Saga Petroleum ASA Den norske stats oljeselskap a.s 3.000 085 B Saga Petroleum ASA Den norske stats oljeselskap a.s 3.000 086 Amerada Hess Norge AS Saga Petroleum ASA 10.000 089 Saga Petroleum ASA Den norske stats oljeselskap a.s 2.820 091 Saga Petroleum ASA Den norske stats oljeselskap a.s 5.000 103 Den norske stats oljeselskap a.s Amerada Hess Norge AS 50.000 116 Amerada Hess Norge AS Saga Petroleum ASA 10.000 117 Fina Production Licenses AS Saga Petroleum ASA 15.000 128 Saga Petroleum ASA Den norske stats oljeselskap a.s 15.000 128 B Saga Petroleum ASA Den norske stats oljeselskap a.s 9.000 143 BP Amoco Norge AS Norsk Hydro Produksjon a.s 15.000 143 Enterprise Oil Norwegian A/S Phillips Petroleum Norsk A/S 15.000 144 Norske Conoco A/S Amerada Hess Norge AS 15.000 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 155 Licence From: To: Share: 158 BP Amoco Norge AS A/S Norske Shell 21.640 168 Fina Production Licenses AS Den norske stats oljeselskap a.s 10.000 168 Fina Production Licenses AS Amerada Hess Norge AS 5.000 172 Amerada Hess Norge AS Norske Conoco A/S 1.670 172 Amerada Hess Norge AS Mobil Development of Norway AS 2.780 172 Amerada Hess Norge AS Den norske stats oljeselskap a.s 5.550 173 Elf Petroleum Norge AS Den norske stats oljeselskap a.s 6.500 191 Fortum Petroleum AS Norsk Hydro Produksjon a.s 10.000 ' •-' 195 BP Amoco Norge AS Norsk Hydro Produksjon a.s 5.000 199 Saga Petroleum ASA Den norske stats oljeselskap a.s 13.000 213 Saga Petroleum ASA Den norske stats oljeselskap a.s 5.000 215 Saga Petroleum ASA Den norske stats oljeselskap a.s 15.000 219 Norsk Hydro Produksjon a.s Fortum Petroleum AS 10.000 Transfer of operatorship: Licence From: To: 066 Saga Petroleum ASA Amerada Hess Norge AS 144 Norske Conoco A/S Amerada Hess Norge AS 158 BP Amoco Norge AS A/S Norske Shell 199 Saga Petroleum ASA Den norske stats oljeselskap a.s 213 Saga Petroleum ASA Den norske stats oljeselskap a.s 156 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF PRODUCTION LICENCES AT 1 JANUARY 2000 ') The interests shown for each production licence apply to the licence as such, and not necessarily to fields which might lie within the licence. Interests will differ for unitised fields or for those in which the sliding scale has been exercised. See chapters 14-16 for information on interests in the various fields. 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 designation in the heading [for example: production licence 001: Balder (part) (+ PL 028)]. Since interests are shown to no more than three decimal places, they may not add up to exactly 100 per cent in some production licences. i) The companies Norsk Hydro Produksjon a.s and Saga Petroleum ASA,Total Norge AS, Fina Production Licenses AS and Elf Petroleum Norge AS, and Esso Exp! & Prod Norway A/S and Mobil Development of Norway AS are in the process of merging. 1st licensing round Field/PL Block Licensees ("operator) Share (%) SDF! (%) Balder (part) (+ PL O28)/Grane (part) (+PL169) 001 1965 25/11 Esso Expl & Prod Norway A/S 100.000 001 B 1999 16/1 Esso Expl & Prod Norway A/S 50.000 Enterprise Oil Norwegian A/S 50.000 Valhail (part) (+ PL O33)/Tor (part) {+ PL 018) 006 1965 2/5 * BP Amoco Norge AS 28.333 2/8 Amerada Hess Norge A/S 28.333 Enterprise Oil Norwegian A/S 28.333 Elf Petroleum Norge AS 15.000 ; 1965 2/6 * Saga Petroleum ASA 50.000 Amerada Hess Norge A/S 50.000 Ekofisk area/Albuskjell (part) (+PL oiSB) 018 1965 1/5 * Phillips Petroleum Norsk A/S 35.112 2/4 Fina Production Licenses AS 28.500 2/7 Norsk Agip A/S 12.388 7/11 Elf Petroleum Norge AS 8.026 Norsk Hydro Produksjon a.s 6.365 Den norske stats oljeselskap a.s 5.950 [5.000] Total Norge AS 3.370 Saga Petroleum ASA 0.289 Awarded outside licensing rounds: Albuskjell (part) (+PL 018) 018B 1995 1/6 * Phillips Petroleum Norsk A/S 35.112 Fina Production Licenses AS 28.500 Norsk Agip A/S 12.388 Elf Petroleum Norge AS 8.026 Norsk Hydro Produksjon a.s 6.365 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 157 Field/PL Block Licensees ('operator) Share (%) SDF1 (%) Den norske stats oljeselskap a.s 5.950 [5.000] Total Norge AS 3.370 Saga Petroleum ASA 0.289 Ula 019 1965 7/12 * BP Amoco Norge AS 80.000 Svenska Petroleum Exploration AS 15.000 AS Pelican 5.000 Awarded outside licensing rounds: Gyda/Tambar (part) (+PL 065) 019B 1977 2/1 * BP Amoco Norge AS 56.000 7/12 Den norske stats oljeselskap a.s 30.000 [30.000] Norske AEDC A/S 5.000 Norske Moeco A/S 5.000 AS Pelican 4.000 Awarded outside licensing rounds: 019C 1998 2/1 * BP Amoco Norge AS 45.000 7/12 Den norske stats oljeselskap a.s 30.000 [30.000] Norsk Hydro Produksjon a.s 20.000 AS Pelican 5.000 2nd licensing round Frigg/North-East-Frigg (part) (+ PL O3O)/East Frigg (part) (+ PL 026 og 112) 024 1969 25/1 * Elf Petroleum Norge AS 26.420 Norsk Hydro Produksjon a.s 32.870 Total Norge AS 20.710 Den norske stats oljeselskap a.s 20.000 025 1969 15/3 * Den norske stats oljeselskap a.s Elf Petroleum Norge AS 33.200 Total Norge AS 10.000 Norsk Hydro Produksjon a.s 10.000 East Frigg (part) (+ PL 024 and 112)/Fr0y (part) (+ PL 102B)/Lille-Frigg 026 1969 25/2 * Elf Petroleum Norge AS 41.420 Norsk Hydro Produksjon a.s 32.870 Total Norge AS 20.710 Den norske stats oljeselskap a.s 5.000 027 1969 25/8 * Esso Expl & Prod Norway A/S 100.000 Jotun(part)(+PL103B) 027 B 1999 25/8 * Esso Expl & Prod Norway A/S 50.000 Enterprise Oil Norwegian A/S 50.000 158 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI (%) Balder (part) (+PL 001) 028 1969 25/10 * Esso Expl & Prod Norway A/S 100.000 028 B 1999 25/10 * Esso Expl & Prod Norway A/S 50.000 Enterprise Oil Norwegian A/S 50.000 Sleipner West (part) {+ PL 046) 029 1969 15/6 * Esso Expl & Prod Norway A/S 100.000 Valhall (part) (+ PL O06)/Hod 033 1969 2/11 * BP Amoco Norge AS 25.000 Amerada Hess Norge AS 25.000 Elf Petroleum Norge AS 25.000 Enterprise Oil Norwegian A/S 25.000 Tune (part) (+ PL 053 and 190) 034 1969 30/5 * A/S Norske Shell 100.000 035 1969 30/11 * Norsk Hydro Produksjon a.s 100.000 Heimdal 036 1971 25/4 * Norsk Hydro Produksjon a.s 21.920 Marathon Petroleum Norge AS 46.904 Elf Petroleum Norge AS 18.702 Saga Petroleum ASA 6.611 Total Norge AS 5.541 AS Ugland Rederi 0.322 Awarded outside licensing rounds: Statfjord/Murchison/Statfjord East (part) (+ PL 089)/ Statfjord North/Rimfaks (part) (+PL 050)/Sygna (part) (+ PL 089) 037 1973 33/9 * Den norske stats oljeselskap a.s 51.875 [30.000] 33/12 Mobil Development Norway AS 15.000 Norske Conoco A/S 12.083 A/S Norske Shell 10.000 Esso Expl. & Prod. Norway AS 10.000 Enterprise Oil Norwegian A/S 1.042 Awarded outside licensing rounds: 037B 1998 33/9 * Den norske stats oljeselskap a.s 85.000 [73.000] Norsk Hydro Produksjon a.s 9.000 Saga Petroleum ASA 6.000 037 C 1999 33/9 * Den norske stats oljeselskap a.s 50.000 Mobil Development Norway AS 15.000 Norske Conoco A/S 12.083 A/S Norske Shell 10.000 Esso Expl. & Prod. Norway AS 10.000 Enterprise Oil Norwegian A/S 1.042 Saga Petroleum ASA 1.875 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 159 Field/PL Block Licensees ('operator) Share (%) SDFI (%) 3rd licensing round Varg 038 1974 15/12 * Saga Petroleum ASA 35.000 Den norske stats oljeselskap a.s 65.000 [30.000] Hild (part) (+ PL 043) 040 1976 29/9 * Norsk Hydro Produksjon a.s 6.800 30/7 Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 43.200 Hild (part) (+ PL 040) 043 1976 29/6 * Total Norge AS 50.000 30/4 Den norske stats oljeselskap a.s 50.000 [30.000] Awarded outside licensing rounds: Tommeliten 044 1976 1/9 * Den norske stats oljeselskap a.s 71.880 [30.000] Fina Production Licenses AS 15.000 Norsk Agip A/S 13.120 Awarded outside licensing rounds: Sleipner East/Sleipner West (part) (+ PL 029)/Volve 046 1976 15/8 * Den norske stats oljeselskap a.s 52.600 [34.400] 15/9 Esso Expl & Prod Norway A/S 28.000 Elf Petroleum Norge AS 10.000 Norsk Hydro Produksjon a.s 9.400 Awarded outside licensing rounds: 048 1977 15/5 * Den norske stats oljeselskap a.s 68.900 [30.000] Elf Petroleum Norge AS 21.800 Norsk Hydro Produksjon a.s 9.300 Awarded outside licensing rounds: Gullfaks/Gullfaks South/Gullveig/ Rimfaks (part) (+ PL 037) (+ PL 050B) 050 1978 34/10 * Den norske stats oljeselskap a.s 91.000 [73.000] Norsk Hydro Produksjon a.s 9.000 Awarded outside licensing rounds: Rimfaks (part) (+ PL 050) 050B 1995 34/10 * Den norske stats oljeselskap a.s 91.000 [73.000] Norsk Hydro Produksjon a.s 9.000 Awarded outside licensing rounds: North Sea round 1999 050 C * Den norske stats oljeselskap a.s 85.000 [73.000] Norsk Hydro Produksjon a.s 9.000 Saga Petroleum ASA 6.000 160 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI (%) 4th licensing round Huldra (part) (+ PL 052) 051 1979 30/2 * Den norske stats oljeselskap a.s 51.000 [31.400] Norske Conoco A/S 24.500 Total Norge AS 24.500 Huldra (part) (+ PL O51)/Veslefrikk 052 1979 30/3 * Den norske stats oljeselskap a.s 55.000 [37.000] Total Norge AS 18.000 RWE-DEA Norge AS 11.250 Petro-Canada Norge AS 9.000 Svenska Petroleum Exploration AS 4.500 Norske RWE-DEA AS 2.250 Oseberg (part) (+ PL 079)/Oseberg East/Brage (part) (+ PL 055 and 185)/Tune (part)(+ PL 034 and 190) 053 1979 30/6 * Norsk Hydro Produksjon a.s 12.250 Den norske stats oljeselskap a.s 59.400 [45.400] Elf Petroleum Norge AS 9.333 Saga Petroleum ASA 7.350 Mobil Development of Norway AS 7.000 Total Norge AS 4.667 Awarded outside licensing rounds: 053B 1998 30/6 * Norsk Hydro Produksjon a.s 40.600 Den norske stats oljeselskap a.s 59.400 [45.400] Troll (part) (+ PL 085 and O85B) 054 1979 31/2 * Den norske stats oljeselskap a.s 58.800 [40.800] A/S Norske Shell 25.900 Norske Conoco A/S 5.191 Norsk Hydro Produksjon a.s 4.900 Elf Petroleum Norge AS 3.105 Total Norge AS 2.104 Brage (part) (+ PL 053 and 185) 055 1979 31/4 * Norsk Hydro Produksjon a.s 23.200 Den norske stats oljeselskap a.s 46.000 [33.400] Esso Expl & Prod Norway A/S 17.600 Fortum Petroleum A/S 13.200 Awarded outside licensing rounds: North Sea round 1999 055 B 1999 31/4 * Norsk Hydro Produksjon a.s 23.200 Den norske stats oljeselskap a.s 46.000 [33.400] Esso Expl & Prod Norway A/S 17.600 Fortum Petroleum A/S 13.200 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 161 Field/PL Block Licensees ('operator) Share (%) SDFi {%) Snorre (part) (+ PL 089) 057 1979 34/4 * Saga Petroleum ASA 14.700 Den norske stats oljeselskap a.s 41.400 [31.400] RWE-DEA Norge AS 24.500 Idemitsu Petroleum Norge a.s 9.600 Amerada Hess Norge AS 4.900 Enterprise Oil Norwegian A/S 4.900 5th licensing round Asgard (part) (+PL 074, 094,134 and 237) 062 1981 6507/11 * Den norske stats oljeselskap a.s 51.000 [31.400] Total Norge AS 24.500 Saga Petroleum ASA 9.800 Fortum Petroleum AS 9.800 Norsk Hydro Produksjon a.s 4.900 Askeladd (part) (+ PL 077) 064 1981 7120/8 * Den norske stats oljeselskap a.s 74.250 [30.000] Norsk Hydro Produksjon a.s 20.750 Total Norge AS 5.000 065 1981 1/3 * BP Amoco Norge AS 55.000 Den norske stats oljeselskap a.s 30.000 [30.000] A/S Norske Shell 15.000 066 1981 2/2 * Amerada Hess Norge AS 70.000 Den norske stats oljeselskap a.s 30.000 [30.000] Sigyn 072 1981 16/7 * Esso Expl & Prod Norway A/S 40.000 Den norske stats oljeselskap a.s 50.000 [30.000] Norsk Hydro Produksjon a.s 10.000 6th licensing round Tyrihans 073 1982 6407/1 * Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 33.333 Norsk Hydro Produksjon a.s 16.667 Asgard (part) (+ PL 062, 094,134 and 237) 074 1982 6407/2 * Den norske stats oljeselskap a.s 51.000 [31.400] Fortum Petroleum AS 14.700 Norsk Agip A/S 14.700 Saga Petroleum ASA 9.800 Mobil Development of Norway AS 9.800 162 l8 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI (%) Askeladd (part) (+ PL 064) 077 1982 7120/7 * Den norske stats oljeselskap a.s 75.000 [30.000] Norsk Hydro Produksjon a.s 15.000 Total Norge AS 10.000 Albatross (part) (+ PL 097 and 100) 078 1982 7120/9 * Norsk Hydro Produksjon a.s 25.000 Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 25.000 Awarded outside licensing rounds: Oseberg (part) (+ PL 053)/Oseberg South (part) (+ PL 104 and 171) 079 1982 30/9 * Norsk Hydro Produksjon a.s 16.000 Den norske stats oljeselskap a.s 73.500 [59.500] Saga Petroleum ASA 10.500 Awarded outside licensing rounds: Troll (part) (+ PL 054 and 085B) 085 1983 31/3 * Den norske stats oljeselskap a.s 85.000 [73.000] 31/5 * Norsk Hydro Produksjon a.s 9.000 31/6 * Saga Petroleum ASA 3.000 Elf Petroleum Norge AS 2.000 Total Norge AS 1.000 Awarded outside licensing rounds: Troll (part) (+ pi 054 and 085) 085B 1992 31/9 * Den norske stats oljeselskap a.s 85.000 [73.000] 32/4 * Norsk Hydro Produksjon a.s 9.000 * Saga Petroleum ASA 3.000 Elf Petroleum Norge AS 2.000 Total Norge AS 1.000 8th [icensing round 086 1984 6/3 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 70.000 [30.000] Norsk Hydro Produksjon a.s 10.000 Peik ; 1984 24/6 * Total Norge AS 50.000 Den norske stats oljeselskap a.s 50.000 [31.400] Snorre (part) (+ PL 057)/Statfjord East (part) (+ PL 037) / Statfjord North/Vigdis/Tordis/Borg/Sygna (part) (+ PL 037) 089 1984 34/7 * Saga Petroleum ASA Den norske stats oljeselskap a.s 58.220 [51.000] Esso Explo. & Prod. Norway A/S 10.500 Idemitsu Petroleum Norge a.s 9.600 Norsk Hydro Produksjon a.s 8.400 Elf Petroleum Norge AS 5.600 RWE-DEA Norge AS 2.800 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 163 Field/PL Block Licensees ('operator) Share (%) SDFI (%) Fram 090 1984 35/11 * Norsk Hydro Produksjon a.s 25.000 Den norske stats oljeselskap a.s 50.000 [30.000] Mobil Development of Norway AS 25.000 Trestakk 091 1984 6406/3 * Den norske stats oljeselskap a.s 55.000 [30.000] Mobil Development of Norway AS 33.000 Saga Petroleum ASA 12.000 092 1984 6407/6 * Den norske stats oljeselskap a.s 50.000 [30.000] Mobil Development of Norway AS 40.000 Saga Petroleum ASA 10.000 Draugen 093 1984 6407/9 * A/S Norske Shell 16.200 Den norske stats oljeselskap a.s 57.880 [57.880] BP Amoco Norge AS 18.360 Norsk Chevron AS 7.560 Asgard (part) (+ PL 062,074,134 and 237) 094 1984 6506/12 * Den norske stats oljeselskap a.s 44.000 [26.400] Mobil Development of Norway AS 14.700 Fortum Petroleum AS 9.800 Norsk Agip A/S 9.800 Total Norge AS 9.800 Saga Petroleum ASA 7.000 Norsk Hydro Produksjon a.s 4.900 Heidrun(part)(+PL124) 095 1984 6507/7 * Norske Conoco A/S 20.000 Den norske stats oljeselskap a.s 75.000 [65.000] Fortum Petroleum AS 5.000 Albatross (part) (+ PL 078 and 1OO)/Sn0hvit (part) (+ PL 099 and 110) 097 1984 7120/6 * Norsk Hydro Produksjon a.s 22.500 Den norske stats oljeselskap a.s 56.250 [30.000] Amerada Hess Norge AS 11.250 RWE-DEA Norge AS 10.000 Sn0hvit (part) (+ PL 097 and 110) 099 1984 7121/4 * Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 37.500 Norsk Hydro Produksjon a.s 12.500 Albatross (part) (+ PL 078 and 097) 100 1984 7121/7 * Den norske stats oljeselskap a.s 51.000 [30.000] Total Norge AS 35.000 Svenska Petroleum Exploration AS 10.000 RWE-DEA Norge AS 4.000 164 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ("operator) Share (%) 5DFI (%) 9th licensing round Skirne/Byggve 102 1985 25/5 * Elf Petroleum Norge AS 20.000 Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 20.000 Norsk Hydro Produksjon a.s 10.000 Awarded outside licensing rounds: Fr0y (+ PL 026) 102B 1998 25/5 * Elf Petroleum Norge AS 30.000 Den norske stats oljeselskap a.s 50.000 [30.000] Total Norge AS 20.000 103 1985 25/7 * Amerada Hess Norge AS 100.000 Awarded outside licensing rounds: Jotun (part) (+ PL 027) 103B 1998 25/7 * Norske Conoco A/S 37.500 Den norske stats oljeselskap a.s 50.000 [30.000] Amerada Hess Norge AS 12.500 Oseberg South (part) (+ PL 079 and 171) 104 1985 30/9 * Norsk Hydro Produksjon a.s 24.000 Den norske stats oljeselskap a.s 50.000 [30.000] Saga Petroleum ASA 10.000 Norske Conoco A/S 11.000 Mobil Development of Norway AS 5.000 Njord (part) (+ PL 132) 107 1985 6407/7 * Norsk Hydro Produksjon a.s 22.500 Den norske stats oljeselskap a.s 50.000 [30.000] Mobil Development of Norway AS 20.000 Petro-Canada Norge AS 7.500 109 1985 7120/2 * Norsk Hydro Produksjon a.s 23.055 7120/3 Den norske stats oljeselskap a.s 61.945 [30.000] Mobil Development of Norway AS 15.000 Sn0hvit (part) (+ PL 097 and 099) 110 1985 7120/5 * Den norske stats oljeselskap a.s 50.000 [30.000] 7121/5 Total Norge AS 20.000 Norsk Hydro Produksjon a.s 16.670 Amerada Hess Norge AS 8.330 Fina Production Licenses AS 5.000 Awarded outside licensing rounds: East Frigg (part) (+ PL 024 and 026) 112 1985 25/2 * Elf Petroleum Norge AS 21.800 Den norske stats oljeselskap a.s 50.000 [30.000] Norsk Hydro Produksjon a.s 17.300 Total Norge AS 10.900 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 165 Field/PL Block Licensees ('operator) Share (%) SDFI (%) 10th licensing round - Part A Freja 113 1985 2/12 * Amerada Hess Norge AS 50.000 Den norske stats oljeselskap a.s 50.000 [30.000] Yme/Yme Beta East (part) (+ PL 114B and 114C) 114 1985 9/2 * Den norske stats oljeselskap a.s 65.000 [30.000] Saga Petroleum ASA 25.000 RWE-DEA Norge AS 10.000 Awarded outside licensing rounds: Yme Beta East (part) (+ PL 114 and 114C) 114B 1995 9/5 * Den norske stats oJjeselskap a.s 65.000 [30.000] Saga Petroleum ASA 25.000 RWE-DEA Norge AS 10.000 Awarded outside licensing rounds: Yme Beta West (part) (+ PL 114 and 114B) 114C1998 9/1 * Den norske stats oljeselskap a.s 65.000 [30.000] 9/2 Saga Petroleum ASA 25.000 9/4 RWE-DEA Norge AS 10.000 116 1985 15/12 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 70.000 [30.000] Norsk Hydro Produksjon a.s 10.000 Visund 120 1985 34/8 * Norsk Hydro Produksjon a.s 23.000 34/7 Den norske stats oljeselskap a.s 47.000 [28.000] Norske Conoco A/S 13.000 Elf Petroleum Norge AS 11.000 Saga Petroleum ASA 6.000 10th licensing round - Part B 121 1986 6407/5 * Den norske stats oljeselskap a.s 50.000 [40.000] Mobil Development of Norway AS 20.000 Norsk Hydro Produksjon a.s 20.000 Saga Petroleum ASA 10.000 122 1986 6507/2 * Norsk Agip A/S 20.000 Den norske stats oljeselskap a.s 50.000 [30.000] Amerada Hess Norge AS 20.000 Mobil Development of Norway AS 10.000 Heidrun (part) (+ PL 095)/Heidrun North 124 1986 6507/8 * Den norske stats oljeselskap a.s 65.000 [30.000] Norske Conoco A/S 25.000 Fortum Petroleum AS 10.000 166 l8 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share ( SDFI (%} 127 1986 6607/12 * Elf Petroleum Norge AS 35.000 Den norske stats oljeselskap a.s 50.000 [30.000] Fina Production Licenses AS 15.000 Norne (part) (+PL 128B) 128 1986 6608/10 * Den norske stats oljeselskap a.s 65.000 [25.000] 6608/11 Norsk Hydro Produksjon a.s 13.500 Norsk Agip A/S 11.500 Enterprise Oil Norwegian A/S 10.000 Awarded outside licensing rounds: Norne (part) (+PL128) 128B 98 6508/B * Den norske stats oljeselskap a.s 79.000 [55.000] Norsk Hydro Produksjon a.s 8.100 Norsk Agip A/S 6.900 Enterprise Oil Norwegian A/S 6.000 11th licensing round - Part A Njord (part) (+PL107) 132 1987 6407/10 * Norsk Hydro Produksjon a.s 22.500 Den norske stats oljeselskap a.s 50.000 [30.000] Mobil Development of Norway AS 20.000 Petro-Canada Norge AS 7.500 Asgard (part) (+ PL 062, 074, 094 and 237)/Kristin (part) (+pl 199) 134 1987 6506/11 * Den norske stats oljeselskap a.s 53.000 [25.000] Norsk Agip A/S 30.000 Total Norge AS 10.000 Saga Petroleum ASA 7.000 12th licensing round - Part A 143 1988 1/2 * Norsk Hydro Produksjon a.s 35.000 Den norske stats oljeselskap a.s 30.000 [30.000] Phillips Petroleum Norsk A/S 35.000 144 1988 1/5 * Amerada Hess Norge AS 25.000 1/6 Den norske stats oljeselskap a.s 50.000 [30.000] Enterprise Oil Norwegian A/S 25.000 145 1988 1/9 * Phillips Petroleum Norsk A/S 40.000 2/7 Den norske stats oljeselskap a.s 40.000 [30.000] Norsk Hydro Produksjon a.s 10.000 Norsk Agip A/S 10.000 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 167 Field/PL Block Licensees ('operator) Share (%) SDFI (%) 146 1988 2/4 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 30.000 [30.000] Elf Petroleum Norge AS 20.000 Phillips Petroleum Norsk A/S 20.000 Amerada Hess Norge AS 10.000 147 1988 3/7 * A/S Norske Shell 50.000 3/8 Den norske stats oljeselskap a.s 50.000 [30.000] 148 1988 7/4 * Den norske stats oljeselskap a.s 50.000 [30.000] 7/7 Amerada Hess Norge AS 25.000 Total Norge AS 15.000 BP Amoco Norge AS 10.000 150 1988 24/9 * Fina Production Licenses AS 10.000 Den norske stats oljeselskap a.s 40.000 [30.000] Enterprise Oil Norwegian A/S 40.000 Saga Petroleum ASA 10.000 152 1988 33/12 * Den norske stats oljeselskap a.s 80.000 [30.000] Idemitsu Petroleum Norge AS 10.000 Mobi! Development of Norway AS 10.000 Gjssa 153 1988 35/9 * Norsk Hydro Produksjon a.s 20.000 36/7 Den norske stats oljeselskap a.s 50.000 [30.000] A/S Norske Shell 12.000 Saga Petroleum ASA 10.000 RWE-DEA Norge AS 8.000 12th licensing round - Part B 156 1989 6406/11 * Saga Petroleum ASA 40.000 Den norske stats oljeselskap a.s 30.000 [30.000] Norsk Chevron AS 20.000 Amerada Hess Norge AS 10.000 158 1989 6407/8 * A/S Norske Shell 31.640 BP Amoco Norge AS 18.360 Den norske stats oljeselskap a.s 30.000 [30.000] Norsk Chevron AS 20.000 159 1989 6507/3 * Den norske stats oljeselskap a.s 50.000 [20.000] Enterprise Oil Norwegian A/S 40.000 Saga Petroleum ASA 10.000 168 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI (%) 13th licensing round 163 1991 2/10 * Saga Petroleum ASA 30.000 Den norske stats oljeselskap a.s 50.000 [35.000] Norsk Agip A/S 10.000 Amerada Hess Norge AS 10.000 166 1991 15/6 * RWE-DEA Norge AS 30.000 Den norske stats oljeselskap a.s 70.000 [30.000] 167 1991 16/1 * Den norske stats oljeselskap a.s 50.000 [20.000] Norsk Hydro Produksjon a.s 30.000 BP Amoco Norge AS 10.000 Phillips Petroleum Norsk A/S 10.000 168 1991 25/10 * Den norske stats oljeselskap a.s 75.000 [20.000] Amerada Hess Norge AS 25.000 Grane (part) (+ PL 001) 169 1991 25/8 * Norsk Hydro Produksjon a.s 40.000 25/11 Den norske stats oljeselskap a.s 50.000 [35.000] Esso Expl & Prod Norway A/S 10.000 Oseberg South (part) (+ PL 079 and 104) 171 1991 30/12 * Norsk Hydro Produksjon a.s 30.000 Den norske stats oljeselskap a.s 50.000 [35.000] Saga Petroleum ASA 10.000 Mobil Development of Norway AS 10.000 172 1991 33/9 * Mobil Development of Norway AS 27.780 Den norske stats oljeselskap a.s 55.550 [35.000] Norske Conoco A/S 16.670 173 1991 35/10 * Den norske stats oljeselskap a.s 56.500 [20.000] Mobil Development of Norway AS 20.000 Elf Petroleum Norge AS 8.500 Norsk Hydro Produksjon a.s 15.000 174 1991 35/12 * Saga Petroleum ASA 30.000 Den norske stats oljeselskap a.s 50.000 [35.000] Norske Conoco A/S 20.000 176 1991 6407/11 * A/S Norske Shell 40.000 6407/12 Den norske stats oljeselskap a.s 35.000 [35.000] Norsk Chevron AS 15.000 Norsk Hydro Produksjon a.s 10.000 177 1991 6610/2 * Den norske stats oljeselskap a.s 50.000 [20.000] 6610/3 BP Amoco Norge AS 20.000 Saga Petroleum ASA 30.000 182 1991 7219/7 * Saga Petroleum ASA 30.000 7219/8 Den norske stats oljeselskap a.s 30.000 [30.000] Enterprise Oil Norwegian A/S 20.000 Norsk Chevron AS 20.000 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 169 Field/PL Block Licensees ("operator) Share (%) SDFI (%) Awarded outside licensing round: Brage (part) (+ PL 053 and 055) 185 1991 31/7 * Norsk Hydro Produksjon a.s 23.200 Den norske stats oljeselskap a.s 46.000 [33.400] Esso Expl & Prod Norway A/S 17.600 Fortum Petroleum AS 13.200 14th licensing round 186 1993 7/10 * Saga Petroleum ASA 20.000 7/11 Den norske stats oljeselskap a.s 50.000 [40.000] BP Amoco Norge AS 15.000 Total Norge AS 15.000 187 1993 15/2 * BP Amoco Norge AS 25.000 15/3 Den norske stats oljeselskap a.s 65.000 [40.000] Norsk Hydro Produksjon a.s 10.000 189 1993 25/8 * Amerada Hess Norge AS 20.000 25/9 Den norske stats oljeselskap a.s 70.000 [45.000] Saga Petroleum ASA 10.000 Tune (part) (+ PL 034 and 053) 190 1993 30/8 * Norsk Hydro Produksjon a.s 30.000 Den norske stats oljeselskap a.s 50.000 [50.000] Total Norge AS 10.000 Elf Petroleum Norge AS 10.000 191 1993 31/1 * Norsk Hydro Produksjon a.s 30.000 31/2 Den norske stats oljeselskap a.s 60.000 [45.000] 31/4 Mobil Development of Norway AS 10.000 31/5 192 1993 34/5 * Mobil Development Norway AS 18.000 Den norske stats oljeselskap a.s 62.000 [35.000] Norske Conoco A/S 20.000 Kvitebj0rn 193 1993 34/11 * Den norske stats oljeselskap a.s 80.000 [40.000] Norsk Hydro Produksjon a.s 15.000 Elf Petroleum Norge AS 5.000 194 1993 35/4 * Norsk Hydro Produksjon a.s 25.000 35/5 Den norske stats oljeselskap a.s 55.000 [45.000] Elf Petroleum Norge AS 10.000 Saga Petroleum ASA 10.000 195 1993 35/8 * BP Amoco Norge AS 20.000 Den norske stats oljeselskap a.s 35.000 [35.000] Norsk Hydro Produksjon a.s 30.000 Norske Conoco A/S 15.000 170 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI (%) 196 1993 35/6 * Den norske stats oljeselskap a.s 75.000 [25.000] 36/4 Norsk Hydro Produksjon a.s 15.000 Idemitsu Petroleum Norge AS 10.000 197 1993 6306/2 * Amerada Hess Norge AS 70.000 6306/5 Den norske stats oljeselskap a.s 30.000 [30.000] Lavrans/Kristin (part) (+pl 134) 199 1993 6406/2 * Den norske stats oljeselskap a.s 73.000 [45.000] Saga Petroleum ASA 12.000 Mobil Development of Norway AS 15.000 200 1993 6608/7 * Den norske stats oljeselskap a.s 65.000 [40.000] 6608/8 Phillips Petroleum Norsk A/S 20.000 Fortum Petroleum AS 15.000 201 1993 7018/3 * Norsk Agip A/S 35.000 7019/1 Den norske stats oljeselskap a.s 25.000 [25.000] Enterprise Oil Norwegian A/S 25.000 Fortum Petroleum AS 15.000 202 1993 7227/11 * Den norske stats oljeselskap a.s 55.000 [30.000] 7227/12 Amerada Hess Norge AS 25.000 7228/7 Saga Petroleum ASA 20.000 7228/10 15th licensing round 203 1996 24/6 * Norsk Hydro Produksjon a.s 35.000 25/4 Den norske stats oljeselskap a.s 30.000 [30.000] 25/7 Norske Conoco A/S 20.000 BP Amoco Norge AS 15.000 204 1996 24/9 * Den norske stats oljeselskap a.s 65.000 [30.000] 24/11 Amerada Hess Norge AS 20.000 24/12 Enterprise Oil Norwegian A/S 15.000 206 1996 33/5 * Mobil Development of Norway AS 75.000 33/6 Saga Petroleum ASA 25.000 34/4 208 1996 6304/9 * BP Amoco Norge AS 45.000 6305/7 Den norske stats oljeselskap a.s 30.000 [30.000] A/S Norske Shell 25.000 209 1996 6305/1 * Norsk Hydro Produksjon a.s 25.000 6305/2 Den norske stats oljeselskap a.s 50.000 [35.000] 6305/4 A/S Norske Shell 15.000 6305/5 Esso Expl & Prod Norway A/S 10.000 210 1996 6404/3 * A/S Norske Shell 30.000 6405/1 Den norske stats oljeselskap a.s 50.000 [30.000] 6504/9 Norsk Hydro Produksjon a.s 20.000 6504/12 6505/7 6505/10 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 171 Field/PL Block Licensees ("operator) Share (%) SDFI (%) 211 1996 6506/6 * Mobil Development of Norway AS 30.000 6507/4 Den norske stats oljeselskap a.s 30.000 [30.000] Norsk Agip A/S 20.000 Elf Petroleum Norge AS 20.000 212 1996 6507/5 * BP Amoco Norge AS 30.000 6507/6 Den norske stats oljeselskap a.s 30.000 [30.000] Enterprise Oil Norwegian A/S 25.000 Mobil Development of Norway AS 15.000 213 1996 6508/1 * Den norske stats oljeselskap a.s 60.000 [30.000] * Saga Petroleum ASA 20.000 Phillips Petroleum Norsk A/S 20.000 215 1996 6604/2 Saga Petroleum ASA 10.000 6604/3 Den norske stats oljeselskap a.s 45.000 [30.000] 6704/12 Norsk Hydro Produksjon a.s 20.000 6705/10 Norske Conoco A/S 15.000 Mobil Development of Norway AS 10.000 216 1996 6610/1 * BP Amoco Norge AS 30.000 Den norske stats oljeselskap a.s 30.000 [30.000] Total Norge AS 25.000 Enterprise Oil Norwegian A/S 15.000 217 1996 6706/11 * Den norske stats oljeselskap a.s 65.000 [30.000] 6706/12 BP Amoco Norge AS 20.000 Norske Conoco A/S 15.000 218 1996 6706/12 * BP Amoco Norge AS 25.000 6707/10 Den norske stats oljeselskap a.s 50.000 [35.000] Esso Expl & Prod Norway A/S 15.000 Saga Petroleum ASA 10.000 219 1996 6710/6 * Norsk Hydro Produksjon a.s 35.000 Norsk Agip A/S 40.000 Fina Production Licenses AS 15.000 Fortum Petroleum AS 10.000 220 1996 6710/10 * Den norske stats oljeselskap a.s 70.000 [30.000] Amerada Hess Norge AS 15.000 BP Amoco Norge AS 15.000 Awarded outside licensing rounds: Barents Sea project 221 1997 * Norsk Hydro Produksjon a.s 20.000 Den norske stats oljeselskap a.s 45.000 [30.000] Mobil Development of Norway AS 15.000 Elf Petroleum Norge AS 10.000 Saga Petroleum ASA 10.000 222 1997 * Norsk Hydro Produksjon a.s 20.000 Den norske stats oljeselskap a.s 45.000 [30.000] Mobil Development of Norway AS 15.000 Elf Petroleum Norge AS 10.000 Saga Petroleum ASA 10.000 223 1997 * Norsk Hydro Produksjon a.s 20.000 Den norske stats oljeselskap a.s 45.000 [30.000] Mobil Development of Norway AS 15.000 Elf Petroleum Norge AS 10.000 Saga Petroleum ASA 10.000 172 l8 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ('operator) Share (%) SDFI | 224 1997 7217/9 * Elf Petroleum Norge AS 30.000 7217/12 Phillips Petroleum Norsk A/S 25.000 7218/7 Mobil Development of Norway AS 25.000 7218/8 Den norske stats oljeselskap a.s 20.000 [20.000] 7218/10 7218/11 225 1997 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 40.000 [20.000] Norsk Agip A/S 15.000 Enterprise Oil Norwegian A/S 15.000 Fortum Petroleum AS 10.000 226 1997 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 40.000 [20.000] Norsk Agip A/S 15.000 Enterprise Oil Norwegian A/S 15.000 Fortum Petroleum AS 10.000 227 1997 * Saga Petroleum ASA 20.000 Den norske stats oljeselskap a.s 40.000 [20.000] Norsk Agip A/S 15.000 Enterprise Oil Norwegian A/S 15.000 Fortum Petroleum AS 10.000 228 1997 7222/6 * Saga Petroleum ASA 30.000 7222/8 Den norske stats oljeselskap a.s 50.000 [30.000] 7222/9 Norsk Hydro Produksjon a.s 20.000 7222/11 7222/12 7223/4 7223/5 7223/6 229 1997 7122/7 * Norsk Agip A/S 25.000 7122/8 Phillips Petroleum Norsk A/S 25.000 7122/9 Den norske stats oljeselskap a.s 20.000 [20.000] 7122/10 Enterprise Oil Norwegian A/S 15.000 7123/7 Fortum Petroleum AS 15.000 230 1997 * Mobil Development of Norway AS 20.000 Den norske stats oljeselskap a.s 35.000 [20.000] Amerada Hess Norge AS 15.000 Saga Petroleum ASA 15.000 Norsk Hydro Produksjon a.s 15.000 231 1997 * Mobil Development of Norway AS 20.000 Den norske stats oljeselskap a.s 35.000 [20.000] Amerada Hess Norge AS 15.000 Norsk Hydro Produksjon a.s 15.000 Saga Petroleum ASA 15.000 232 1997 * Mobil Development Norway AS 20.000 Den norske stats oljeselskap a.s 35.000 [20.000] Amerada Hess Norge AS 15.000 Norsk Hydro Produksjon a.s 15.000 Saga Petroleum ASA 15.000 233 1997 * Den norske stats oljeselskap a.s 50.000 [20.000] Saga Petroleum ASA 20.000 Norsk Agip A/S 15.000 Norsk Hydro Produksjon a.s 15.000 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 173 Field/PL Block Licensees ("operator) Share (%) SDFI (%) 234 1997 * Den norske stats oljeselskap a.s 50.000 [20.000] Saga Petroleum ASA 20.000 Norsk Agip A/S 15.000 Norsk Hydro Produksjon a.s 15.000 235 1997 * Den norske stats oljeselskap a.s 50.000 [20.000] Saga Petroleum ASA 20.000 Norsk Agip A/S 15.000 Norsk Hydro Produksjon a.s 15.000 236 1997 * Den norske stats oljeselskap a.s 50.000 [20.000] Saga Petroleum ASA 20.000 Norsk Agip A/S 15.000 Norsk Hydro Produksjon a.s 15.000 Awarded outside licensing rounds: Asgard (part) (+ PL 062,074,094 and 134) 237 1998 6407/3 * Den norske stats oljeselskap a.s 60.500 [46.950] Norsk Agip A/S 7.900 Total Norge AS 7.650 Mobil Development of Norway AS 7.350 Fortum Petroleum AS 7.000 Saga Petroleum ASA 7.000 Norsk Hydro Produksjon a.s 2.600 Awarded outside licensing rounds: North Sea round 1999 238 1999 3/6 * Norsk Agip A/S 40.000 Den norske stats oljeselskap a.s 25.000 [25.000] Enterprise Oil Norwegian A/S 35.000 239 1999 7/12 * Norsk Agip A/S 40.000 Den norske stats oljeselskap a.s 25.000 [25.000] RWE-DEA Norge AS 35.000 240 1999 15/8 * BP Amoco Norge AS 75.000 15/9 Den norske stats oljeselskap a.s 25.000 [25.000] 241 1999 * Esso Expl & Prod Norway A/S 100.000 242 1999 16/1 * Esso Expl & Prod Norway A/S 50.000 Enterprise Oil Norwegian A/S 50.000 243 1999 16/4 * BP Amoco Norge AS 45.000 Den norske stats oljeselskap a.s 25.000 [25.000] Norsk Hydro Produksjon a.s 30.000 244 1999 25/2 * Norsk Hydro Produksjon a.s 50.000 25/4 Enterprise Oil Norwegian A/S 50.000 25/5 245 1999 25/3 * Den norske stats oljeselskap a.s 55.000 [25.000] 25/6 Mobil Development of Norway AS 25.000 Saga Petroleum ASA 20.000 246 1999 29/3 * A/S Norske Shell 75.000 Mobil Development of Norway AS 25.000 247 1999 29/3 * Norsk Hydro Produksjon a.s 50.000 30/1 Mobil Development of Norway AS 50.000 248 1999 35/11 * Norsk Hydro Produksjon a.s 20.000 35/8 Mobil Development of Norway AS 20.000 Den norske stats oljeselskap a.s 60.000 [40.000] 174 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF Field/PL Block Licensees ("operator) Share (%) SDFI (%) 249 1999 25/5 * Norsk Hydro Produksjon a.s 22.242 Elf Petroleum Norge AS 18.702 Marathon Petroleum Norge AS 46.904 Saga Petroleum ASA 6.611 Total Norge AS 5.541 Awarded outside licensing rounds: 250 1999 6305/8 * A/S Norske Shell 16.000 Den norske stats oljeselskap a.s 53.870 [45.000] BP Amoco Norge AS 9.440 Esso Expl & Prod Norway A/S 5.910 Norsk Hydro Produksjon a.s 14.780 PRODUCTION LICENCES WITH NO RIGHT OF PREEMPTION: Licensees may buy or sell interests in production licences. All such transactions must be approved by the MPE. Until the 14th licensing round, the partners in most licences had a right of preemption in relation to purchase/sale transactions.To improve the working of this market, the MPE has encouraged licences to surrender such rights. This will help to enhance value creation on the Norwegian continental shelf. The following licences have waived the right of preemption for the transfer of licence interests: 001, 001P, 008, 009, Oil, 019B, 024, 025, 026, 027, 027P, 028, 028P, 029, 031, 032, 034, 035, 036, 038, 040, 043, 044, 046, 048, 050, 050B, 051, 052, 053, 054, 055, 057, 062, 064, 065, 066, 067, 069, 070, 072, 073, 077, 078, 079, 085, O85B, 086, 088, 089, 090, 091, 092, 093, 095, 097, 099,101,102,102B, 103,103B, 104,107,109,110,112,113,114,114B, 115,116,117,120,121,122,124,127,128,132,138, 142,143,144,145,146,147,148,150,152,153,156,157,158,159,163,166,167,168,169,171,172,173,174,175,176,177,181,182,185,186, 187, 189, 190, 191, 192, 193, 194, 195, 196, 197, 199, 200 OG 202. In addition come all licences from 203-250. 18 LICENCE INTERESTS ON THE NORWEGIAN CONTINENTAL SHELF 175 Company interests in fields and production licences The company's share in a field is followed in brackets by the production licence(s) which embrace that field. If the company has an interest in only one of several production licences covering a field, its interest in such other licence(s) is shown as 0.000%. ("Operator) Amerada Hess Norge AS RWE-DEA Norge AS/Norske RWE-DEA AS Valhall 28.093% (006,033) Veslefrikk 11.250% (052) Tor 8.737% (006,018) Snorre (057,089) Hod 25.000% (033) Vigdis (089) Snorre 1.181% (057,089) Tordis (089) 2/12-1 Freja 50.000% (113*) Tordis East 2.8 Jotun 1.250% (027,103*) Statfjord East 1.4 (037,089) 7112/4-1 Snohvit 11.250% (097) Yme 10.000% 8.330% (110) 34/7-21 Borg 2.800% (089) 0.000% (099) 34/7-23S 2.800% (089) 34/7-25S (STUJ) 2.800% (089) Licences in the exploration phase: 008, 066*, 103, 35/9-1 Cj0a 8.000% (153) 103 B, 110,122,144', 146,148,156,163,168,189*, 197', 202, 204, 220, 230, 231, 232. 33/9-19S Sygna 1.260% (037,089) 7112/4-1 Sn0hvit 10.000% (097) 0.000% (099,110) A/S Norske Shell Licences in the exploration phase: 100,166*, 239. Tambar 15.000% (019 B, 065) Statfjord 8.547% (037, UK) Murchison 2.220% (037 C, UK) Den norske stats oljeselskap a.s (Statoil), Statfjord North 10.000% (037) equity share Statfjord East 5.000% (037,089) Tor 0.829% (006,018) Troll 8.101% (054,085,085B) Ekofisk area 0.950% (018.018B) Draugen 16.200% (093*) Frigg, Norwegian part 12.164% (024) 1/3-3 15.000% (065) North-East Frigg 8.400% (024) 3/7-4 Trym 50.000% (147*) East Frigg 8.970% (024,026,112) 33/9-19S Sygna 5.500% (037,089) Lille-Frigg 5.000% (026) 35/9-1RCj0a 12.000% (153) Heimdal 20.000% (036) Licences in the exploration phase: 034', 158*, 176*, 208, Statfjord 44.337% (037*, UK) 209, 210*, 246*, 250*. Murchison 11.516% (037 C*, UK) Statfjord North 21.880% (037*) Statfjord East 14.548% (037*,089) BP Amoco Norge AS Varg 35.000% (038) Tommeliten 28.256% (044*) Valhall 28.093% (006*,033*) Sleipner East 20.000% (046*) Ula 80.000% (019*) Sleipner West 17.130% (029*,046*) Gyda 56.000% (019B*) Loke 20.000% (046*) Gyda South 56.000% (019B*) Gullfaks 18.000% (050*) Tambar 55.000% (019B*,065*) Gullfaks South 18.000% (050*) Hod 25.000% (033*) Gullfaks West 18.000% (050*. 050B*) Draugen 18.360% (093) Gullveig 18.000% (050*) 1/3-3 55.000% (065*) Gungne 18.200% (046*) Licences in the exploration phase: 019C*, 148,158,167, 30/-6 Hild 50.000% (040,043) 177,186,187M95*. 203, 208*, 212*, 216*, 217, 218', 220, 250. Huldra 19.665% (051*.052) 19 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 177 30/6-17 14.000% (053) 6406/2-3 Kristin 28.000% (134*) 30/6-18 Kappa 14.000% (053) 28.000% (199) 33/9-19S Sygna 15.280% (037*,089*) 3/7-4 Trym 20.000% (147) Veslefrikk 18.000% (052*) 6406/3-2 Trestakk 25.000% (091*) Oseberg 14.000% (053,079) Licences in the exploration phase: 025',O37B,O53B" , 064*, Oseberg East 14.000% (053) 066, 077*. 078', 086, 088,100MO2B,1O3Ei, 109,116,122,127,128*, Oseberg South 18.220% (079,104,171) 128B", 144,145,148', 150,152', 156,158,159*, 163,166,167*, 168*, Oseberg West 14.000% (053) 171,172,173', 174,175', 177*,185,186,187,189,190,192,194,196', Troll 13.880% (054*,085*,085B) 199', 200', 202', 204*. 209, 210, 213*, 21i!, 217', 218, 220', 221, 222, 223, 225, 226, 227, 228, 229, 230, 231, :232, 233', 234', 235', B ra ge 12.656% (053,055,185) 236*,237*, 238, 239, 240, 243, 245*, 248,250. Snorre 13.000% (057,089) Åsgard 13.550% (062*,074*, 094*, 134*,237*) Elf Petroleum Norge AS Mime 19.600% (070) 6407/1-2Tyrihans 20.000% (073*) Ekofisk area 8.026% (018.018B) Tordis 7.220% (089) Tor 11.634% (006,018) Tordis East 7.220% (089) Valhall 15.718% (006,033) Vigdis 7.220% (089) Frigg, Norwegian part 16.068% (024*) Heidrun 11.875% (095,124*) North East Frigg 11.006% (024*) Heidrun North 35.000% (124*) East Frigg 37.225% (024*,026*,112*) Mikkel 50.000% (092*) Lille-Frigg 41.420% (026*) 50.000% (121*) Fr0y 24.757% (026*, 102B*) 7121/4-1 Sn0hvit 26.250% (097) Hod 25.000% (033) 20.000% (099*,110*) Heimdal 11.939% (036) Fr0y 12.344% (026,102B) 25/4-6S Vale 18.702% (036) 25/5-3 Skirne 20.000% (102) 33/9-19S Sygna 2.520% (037,089) 25/5-4 Byggve 20.000% (102) Sleipner East 10.000% (046) 25/5-5 20.000% (102) Sleipner West 9.411% (029,046) Njord 20.000% (107,132) 15/5-5 Dagny and Glitne 21.800% (048) 2/12-1 Freja 20.000% (113) 0.000% (029) Yme 35.000% (114*,114B*,114C*) 15/9-19-S Volve 10.00% (046) Visund 13.300% (120) Oseberg 5.770% (053,079) Norne 24.000% (128*,128B*) Oseberg East 9.330% (053) 25/11-15 Grane 10.500% (169) Oseberg West 5.770% (053) 0.000% (001) Troll 2.345% (054,085,085B) 25/11-16 15.000% (169) Snorre 5.951% (057,089) Dagny and Glitne 38.900% (048*) Statfjord East 2.800% (037,089) 0.000% (029) Vigdis 5.600% (089) 15/9-19 Volve 18.200% (046*) Tordis 5.600% (089) 16/7-4 Sigyn 20.000% (072) Tordis East 5.600% (089) Jotun 2.000% (027,103B) 25/5-3 Skirne 20.000% (102*) Rimfaks 18.000% (050*) Byggve 20.000% (102*) 34/7-21 Borg 7.220% (089) 25/5-5 20.000% (102) 34/7-23S 7.220% (089) 30/6-17R 9.333% (053) 34/7-25S (STUJ) 7.220% (089) 30/6-18 Kappa 9.333% (053) 34/11-1 Kvitebj0rn 40.000% (193*) 3O/8-1STune 10.000% (190) 6406/2-1 Lavrans 28.000% (199) Visund 7.700% (120) 35/11-4 Fram 20.000% (090) 24/7-12 Borg 5.600% (089) 35/9-1 Gj0a 20.000% (153) 34/7-23S 5.600% (089) 178 19 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 34/7-25S (STUJ) 5.600% (089) Loke 30.400% (046) Gungne 10.000% (046) 15/9-19S Volve 28.000% (046) Loke 10.000% (046) 16/7-4 Sigyn 40.000% (072*) 34/11-1 Kvitebj0rn 5.000% (193) Licences in the exploration phase: 209, 218, 241*, 242*, 250. Licences in the exploration phase: 025,127", 146,173, 190,194, 211, 221, 222, 223, 224*, 249. Fina Production Licenses AS Enterprise Oil Norwegian A/5 Ekofisk area 28.500% (018.018B) Tor 24.885% (006,018) Valhall 28.093% (006,033) Tommeliten 20.230% (044) Hod 25.000% (033) 7112/4-1 Snphvit 5.000% (110) Statfjord 0.890% (037, UK) 0.000% (097,099) Murchison 0.231% (037 C, UK) Licences in the exploration phase: 127,150*, 219. Statfjord North 1.042% (037) Statfjord East 0.520% (037,089) Snorre 1.181% (057,089) Norge AS Nome 6.000% (128,128B) Idemitsu Petroleum Jotun 45.000% (027,103B) Idemitsu Oil Exploration (Norsk) AS 33/9-19S Sygna 0.528% (037,089) Statfjord East 4.800% (037,089) Licences in the exploration phase: 001,128,128B, 144,150, Snorre 9.600% (057,089) 159,182,201,204,212,216, 225, 226, 227, 229, 238, 242, 244. Vigdis 9.600% (089) Tordis 9.600% (089) Tordis East 9.600% (089) Esso Exploration & Production Norway A/S 34/7-21 Borg 9.600% (089) 34/7-23S 9.600% (089) Balder 100.000% (001*,028*) 34/7-25S 9.600% (089) Ringhorne 100.000% (001*,027*,028*) 33/9-19S Sygna 4.340% (037,089) Statfjord 8.547% (037, UK) Murchison 2.220% (037 C, UK) Licences in the exploration phase: 152,196. Statfjord North 10.000% (037) Statfjord East 10.250% (037,089) Sleipner East 30.400% (046) AS Pelican SleipnerWest 32.240% (029,046) Ula 5.000% (019) Brage 16.343% (053,055,185) Gyda 4.000% (019B) Snorre 11.158% (057,089) Gyda South 4.000% (019B) Vigdis 10.500% (089) Tordis 10.500% (089) Licences in the exploration phase: 019C Tordis East 10.500% (089) 25/11-15 Crane 7.000% (169) 100.000% (001) Marathon Petroleurri Norge AS 15/5-5 Dagny and Glitne 100.000% (029*) Heimdal 23.798% (036) 0.000% (048) 25/4-6S Vale 46.904% (036) 25/11-16 10.000% (169) 33/9-19S Sygna 10.225% (037,089) Licences in the exploration phase: 249. Jotun 45.000% (027PM03B) 34/7-21 Borg 10.500% (089) 34/7-23S 10.500% (089) 34/7-25S (STUJ) 10.500% (089) Gungne 28.000% (046) 19 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 179 Mobil Development of Norway AS Norsk Chevron AS Statfjord 12.820% (037, UK) Draugen 7.560% (093) Statjord North 15.000% (037) Licences in the exploration phase: 156,158,176,182. Statfjord East 7.500% (037,089) Murchison 3.330% (037 C, UK) Oseberg 4.327% (053,079) Norsk Hydro Produksjon a.s Oseberg East 7.000% (053) Oseberg South 3.700% (079,104,171) Tor 5.558% (006,018) Oseberg West 4.327% (053,079) Ekofisk area 6.365% (018.018B) Asgard 7.350% (062,074,094,134,237) Frigg, Norwegian pant 19.992% (024) Njord 20.000% (107,132) East Frigg 32.111% (024,026,112) 6406/2-1 Lavrans 15.000% (199) North-East Frigg 13.805% (024) 35/11-4 Fram 25.000% (090) Fr0y 6.048% (026,102B) Mikkel 40.000% (092) Lille-Frigg 32.870% (026) 0.000% (121) Heimdal 15.803% (036*) 6406/2-3 Kristin 15.000% (199) 30/7-6 Hild 6.800% (040,043) 0.000% (134) 25/4-6SVale 21.920% (036*) 30/6-17 7.000% (053) Statfjord East 4.200% (037,089) 30/6-18 Kappa 7.000% (053) Sleipner East 10.000% (046) 33/9-19S Sygna 8.250% (037,089) Sleipner West 8.847% (029,046) 6406/3-2 Trestakk 33.000% (091) Loke 10.000% (046) Cungne 9.400% (046) Licences in the exploration phase:10?), 122,152,171,172*, 173, 191,192*, 206', 211", 212 215,221, 222, 223. 224. 230*. 231*. Cullfaks 9.000% (050) 232',237, 245, 246, 247, 248. Gullfaks South 9.000% (050) Gullfaks West 9.000% (050.05OB) Cullveig 9.000% (050) Fortum Petroleum AS Oseberg 13.682% (053*,079*) Oseberg East 12.250% (053*) Brage 12.257% (053,055,185) Oseberg South 21.880% (079,104,171) Asgard 7.000% (062,074,094,134,237) Oseberg West 13.682% (053*) Heidrun 5.000% (095,124) Troll 7.720% (054,085,085B) Heidrun North 10.000% (124) Brage 24.442% (053*.055*.185*) Licences in the exploration phase: 200, 201,225,226, 227, Snorre 8.927% (057,089) 229, 237. Asgard 2.600% (062,074,094,134,237) Mime 24.500% (070*) 6407/1-2 Tyrihans 16.670% (073) Norsk Agip A/S Tordis 8.400% (089) ff\QCi\ Tordis East 8.400% {yov) Tor 10.817% (006,018) Vigdis 8.400% (089) Ekofisk area 12.388% (018.018B) Mikkel 10.000% (092) Tommeliten 9.130% (044) 20.000% (121) Asgard 7.900% (062,074,094,134,237) 7121/4-1 Sn0hvit 22.500% (097*) Nome 6.900% (128,128B) 12.500% (099) 6406/2-3 Kristin 30.000% (134) 16.670% (110) 0.000% (199) 25/5-3 Skirne 10.000% (102) Licences in the exploration phase: 12;'.', 145,163, 20T, 211, 219, 25/5-4 Byggve 10.000% (102) 225, 226, 227, 229', 233,234, 235,236,;'37,238*, 239*. 25/5-5 10.000% (102) 30/6-17 12.250% (053*) 30/6-18 Kappa 12.250% (053*) 180 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 3O/8-1S Tune 30.000% (190) Norske Moeco A/S 33/9-19S Sygna 3.780% (037,089) Njord 22.500% (107,132*) Gyda 5.000% (019B) Visund 16.100% (120*) Gyda South 5.000% (019B) Nome 8.100% (128,128B) 25/11-15 Grane 28.000% (169*) 0.000% (001) Petro-Canada Norge AS 25/11-16 40.000% (169*) Veslefrikk 9.000% (052) 15/5-5 Dagny and Clitne 9.300% (048) Njord 7.500% (107,132) 0.000% (029) Huldra (051,052) 15/9-19SR Volve 9.400% (046) 16/7-4 Sigyn 10.000% (072) (050) Rimfaks 9.000% Phillips Petroleum Norsk AS 34/7-21 Borg 8.400% (089) 34/7-23S 8.400% (089) Tor 30.658% (006,018*) 34/7-25S (STUJ) 8.400% (089) Ekofisk area 35.112% (018*,018B*) 34/11-1 Kvitebj>rn 15.000% (193) Licences in the exploration phase: 143,145', 146,167, 200, 213, 35/11-4 Fram 25.000% (090*) 224, 229. 35/9-1 Gj0a 20.000% (153*) Licences in the exploration phase: 019C, 025, 035, 037B, O53B*, 064, 077, 078, 086,109*, 116,143*, 145,167,173,176,187, Saga Petroleum ASA 191*, 194', 195,196, 203*, 209*, 210, 215, 219', 221', 222', 223', 228, 230, 231, 232, 233, 234, 235, 236 , 237, 243, 244*, 247', Tor 0.252% (006,018) 248', 249*. 250. Ekofisk area 0.289% (018.018B) Heimdal 3.471% (036) 25/4-6SVale 5.541% (036) Norske Conoco A/S Statfjord East 2.441% (037,089) Murchison 1.875 (037 C, UK) Statfjord 10.327% (037, UK) Varg 35.000% (038*) Statfjord North 12.083% (037) Oseberg 8.553% (053,079) Statfjord East 6.041% (037,089) Oseberg East 7.350% (053) Murchison 2.683% (037 C, UK) Oseberg South 10.140% (079,104,171) Oseberg South 7.700% (079,104,171) Oseberg West 8.553% (053) Troll 1.624% (054,085,085B) 30/6-17R 7.350% (053) Heidrun 18.125% (095*,124) 30/6-18 Kappa 7.350% (053) Heidrun North 25.000% (124) 33/9-19S Sygna 2.196% (037,089) Visund 9.100% (120) Troll 2.062% (054 085.085B) Jotun 3.750% (027,103B) Snorre 8.725% (057*,089*) Huldra 23.336% (051,052) Åsgard 7.000% (062,074,094,134,237) 33/9-19S Sygna 6.646% (037,089) Mime 9.800% (070) Licences in the exploration »hase: 103B 172,174,192,195, Tordis 4.880% (089*) 203, 215, 217. Tordis East 4.880% (089*) Vigdis 4.880% (089*) Mikkel 0.000% (092) Norske AEDC A/S 10.000% (121) Visund 4.200% (120) Gyda 5.000% (019B) Yme 25.000% (114,114B.114C) Gyda South 5.000% (019B) 34/7-21 Borg 4.880% (089*) ig COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 181 34/7-23S 4.880% (089*) Tordis 51.000% (089) 34/7-255 (STUJ) 4.880% (089*) Tordis East 51.000% (089) 35/9-1 Gj0a 10.000% (153) Vigdis 51.000% (089) 6406/2-1 Lavrans 12.000% (199*) Mikkel 30.000% (092) 6406/2-3 Kristin 7.000% (134) 40.000% (121) 12.000% (199*) Draugen 57.880% (093) 6406/3-2 Trestakk 12.000% (091) Heidrun 65.000% (095,124) Heidrun North 30.000% (124) Licences in the exploration phase: 008', O37B, 069*, 086*, 7112/4-1 Sn0hvit 30.000% (097,099,110) 116*, 146*. 150,156*, 159,163", 174*, 175,177,182*, 186*. 189,194, 202, 206, 213', 215*, 218, 22,1 222, 223, 22«i*, 226', 227", 228", Fr0y 41.616% (026,102B) 230,231,232,233,234,235, 236, 237, 245,249. 25/5-3 Skirne 30.000% (102) 25/5-4 Byggve 30.000% (102) 25/5-5 30.000% (102) State's direct financial interest (SDFI) Njord 30.000% (107,132) 2/12-1 Freja 30.000% (113) Ekofisk area 5.000% (018.018B) Yme 30.000% (114,114B,114C) Tor 3.687% (006,018) Visund 49.600% (120) 30.000% (019B.019C) Gyda Nome 55.000% (128,128B) 30.000% (019B) Gyda South 25/11-15 Grane 54.500% (169) Tambar 30.000% (019 B, 065) 0.000% (001) (024,026,112) East Frigg 1.461% 25/11-16 35.000% (169) (036) Heimdal 20.000% 15/5-5 Dagny 30.000% (048) Statfjord North 30.000% (037) 0.000% (029) 40.500% (037,089) Statfjord East 15/19-S Volve 34.400 % (046) (038) Varg 30.000% 16/7-4 Sigyn 30.000% (072) 42.384% (044) Tommeliten Jotun 3.000% (027,103B) (046) Sleipner East 29.600% Rimfaks 73.000% (050) (029,046) Sleipner West 32.375% 34/7-21 Borg 51.000% (089) (046) Loke 29.600% 34/7-23S 51.000% (089) (050) Gulifaks 73.000% 34/7-25S (STUJ) 51.000% (089) (050) Gullfaks South 73.000% Gungne 34.400% (046) (50,050B) Gulifaks West 73.000% 34/11-1 Kvitebj0rn 40.000% (193) [050) Gullveig 73.000% 6406/2-3 Lavrans 45.000% (199) (051,052) Huldra 31.955% 35/11-4 Fram 30.000% (090) (053) 30/6-17 45.400% Mikkel 30.000% (092) 30/6-18 Kappa 45.400% (053) 40.000% (121) (190) 30/8-1S Tune 50.000% 35/9-1 R GjOa 30.000% (153) 33/9-19S Sygna 39.450% (037,089) 6406/2-3 Kristin 25.000% (134) (052) Veslefrikk 37.000% 45.000% (199) (053,079) Oseberg 50.784% 1/3-3 30.000% (065) (053) Oseberg East 45.400% 3/7-4 Trym 30.000% (147) (079,104,171) Oseberg South 38.360% 6406/3-2 Trestakk 30.000% (091) Oseberg West 50.780% (053) Troll 62.928% (054,085,085B) Licences in the exploration phase-. 064, 066, 077, 078, 086, 088, 092,100,102B, 103,103B, 109,116,121,122,127,143,144 B rage 34.256% (053,055,185) 146,148,150,152,156,158,159,163,166,167.168,172.173,174, Snorre 31.400% (057,089) 176,177,182,186,187,189,192,194,195,19 6,197, 200, 201, 202, Åsgard 46.950% (062,074,094,134,237) 203, 204, 208, 209, 210, 211.212,213,215,, :216, 217, 218, 220, 221, Mime 31.400% (070) 222, 223, 224, 225, 226, 227,228,229,230, 231,232,233,234, 235,236,237,238,239,240, 243, 245, 248,250. O'fU// I-Z Tyrihans 30.000% (073) 182 19 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES Svenska Petroleum Exploration AS Ula 15.000% (019 A) Huldra 0.219% (051,052) Veslefrikk 4.500% (052) Licences in the exploration phase: 100 Total Norge AS Tor 2.942% (pi 006,018) Ekofisk area 3.370% (018.018B) Frigg, Norwegian part 12.596% (024) North-East Frigg 8.698% (024) East Frigg 20.232% (024,026,112) Lille-Frigg 20.710% (026) Fr0y 15.235% (026,102B) Heimdal 4.820% (036) 25/4-6S Vale 5.541% (036) 30/7-6 Hild 43.200% (040,043) 6406/2-3 Kristin 10.000% (134) 0.000% (199) Huldra 24.332% (051,052) Veslefrikk 18.000% (052) Oseberg 2.885% (053,079) Oseberg East 4.667% (053) Oseberg West 2.885% (053) Troll 1.345% (054,085,085B) Asgard 7.650% (062,074,094,134,237) 7121/4-1 Sn0hvit 0.000% (097) 37.500% (099) 20.000% (110) 25/5-3 Skirne 20.000% (102) 25/5-4 Byggve 20.000% (102) 6407/1-2 Tyrihans 33.330% (073) 30/8-lSTune 10.000% (190) Licences in the exploration phase: 025, 064, 077, 078, 088', 100,110,148,186,190, 216, 237, 249. AS Ugland Rederi Heimdal 0.169% (036) 25/4-6S Vale 0.322% (036) 19 COMPANY INTERESTS IN FIELDS AND PRODUCTION LICENCES 183 White Papers, etc WHITE PAPERS OF GENERAL INTEREST Report No 44 (1994-95) to the Storting and Recom No 149 (1995-96) from the Storting Report No 76 (1970-71) to the Storting Norway as a gas nation - use of natural gas in Norway and Recom No 294 (1970-71) from the Storting Exploration for and exploitation of submarine natural Report No 38 (1995-96) to the Storting resources on the Norwegian continental shelf. and Recom No 250 (1995-96) from the Storting Gas-fired power stations in Norway. Proposition No 113 (1971-72) to the Storting and Recom No 316 (1971-72) from the Storting Report No 46 (1997-98) to the Storting The formation of the Norwegian Petroleum and Recom No 211 (1998-99) from the Storting Directorate and a state-owned oil company etc. Petroleum operations. Report No 25 (1973-74) to the Storting Report No 37 (1998-99) to the Storting and Recom No 275 (1973-74) from the Storting and Recoms No 221 (1998-99) The place of petroleum operations in the Norwegian and No 67 (1999-2000) from the Storting community. Supplement to Report No 46 (1997-98) on petroleum operations etc. Report No 30 (1973-74) to the Storting and Recom No 381 (1973-74) from the Storting Petroleum operations on the Norwegian PROPOSITION (BILLS) RELATING TO THE continental shelf. ACT PERTAINING TO PETROLEUM ACTIVITIES Report No 40 (1982-83) to the Storting Proposition No 72 (1982-83) to the Odelsting and Recom No 183 (1984-85) from the Storting and Recom No 33 (1984-85) from the Odelsting Perspectives in the petroleum activity, see NOU Act Pertaining to Petroleum Activities, see NOU 1979:43. 1983:27 The petroleum activity's future. Proposition No 37 (1986-87), Prop No 64 (1986-87), Report No 73 (1983-84) to the Storting Prop No 57 (1987-88) to the Odelsting and Recom No 321 (1983-84) from the Storting and Recom No 65 (1987-88) from the Odelsting The organisation of state participation Amendments to the Petroleum Act (dropping of in petroleum activities. royalty for fields for which the plan for development and operation has been approved after 1 January 1986). Report No 33 (1984-85) to the Storting and Recom No 87 (1984-85) from the Storting Proposition No 25 (1988-89) to the Odelsting The effect of the reorganisation of state and Recom No 55 (1988-89) from the Odelsting participation in petroleum operations. Rules on compensation to fishermen. Report No 46 (1986-87) to the Storting Proposition No 82 (1991-92) to the Odelsting and Recom No 68 (1986-87) from the Storting and Recom No 17 (1992-93) from the Odelsting Petroleum operations in the medium to long term. Amendments to the energy legislation as a consequence of an EEA agreement. Report No 21 (1988-89) to the Storting and Recom No 115 (1988-89) from the Storting Proposition No 63 (1994-95) to the Odelsting The organisation of Statoil, etc. and Recom No 73 (1994-95) from the Odelsting Amendments to Act No 11 of 22 March 1985 pertaining Report No 26 (1993-94) to the Storting to petroleum activities (the Petroleum Act) following and Recom No 180 (1993-94) from the Storting the incorporation of directive 94/22/EC of the European Challenges and perspectives for petroleum Parliament and of the Council of Ministers on the operations on the Norwegian continental shelf. conditions for granting and using authorisations for 20 WHITE PAPERS 185 the prospection, exploration and production of Proposition No 12 (1991-92) to the Odelsting hydrocarbons (the licensing directive) in Appendix and Recom No 40 (1991-92) from the Odelsting IV Energy of the EEA agreement. Amendment to Act No 35 of 13 June 1975 on taxation of subsea petroleum resources. Proposition No 43 (1995-96) to the Odelsting and Recom No 7 (1996-97) from the Odelsting Proposition No 17 (1990-91) to the Odelsting Act Pertaining to Petroleum Activities. and Recom No 19 (1990-91) from the Odelsting The imposition of taxes on emissions of carbon Proposition No 52 (1997-98) to the Odelsting dioxide from offshore petroleum operations etc. and Recom No 54 (1997-98) from the Odelsting Amendments to Act No 3 of 31 March 1949 pertaining Proposition No 12 (1994-95) to the Odelsting to the construction and safeguarding of facilities for and Recom No 17 (1994-95) from the Odelsting automotive fuels. Tax-related requirements concerning the equity of joint stock companies engaged in exploitation, processing and transport through pipelines PROPOSITIONS RELATING TO TAXATION of petroleum on the Norwegian continental shelf. AND ROYALTIES Proposition No 47 (1995-96) to the Odelsting Proposition No 26 (1974-75) to the Odelsting and Recom No 35 (1996-97) from the Odelsting and Recom No 60 (1974-75) from the Odelsting Amendment to petroleum taxation etc. Act relating to the taxation of submarine petroleum deposits, incl establishment of the norm price system. Proposition No 36 (1997-98) to the Odelsting and Recom No 36 (1997-98) from the Odelsting Proposition No 37 (1979-80) to the Odelsting Changes in petroleum taxation. and Recom No 64 (1979-80) from the Odelsting Amendments to Act No 35 of 13 June 1975 relating Proposition No 86 (1998-99) to the Odelsting to the taxation of submarine petroleum deposits, etc. and Recom No 1 (1999-2000) from the Odelsting Amendments to the law on taxes and duties. Proposition No 33 (1985-86) to the Odelsting and Recom No 28 (1985-86) from the Odelsting Proposition No 91 (1998-99) to the Odeisting The distribution of expenses associated with and Recom No 9 (1999-2000) from the Odelsting the removal of installations offshore and Amendment to Act No 11 of 25 April 1986 relating to amendments to the Petroleum Taxation Act. the division of costs for removing installation on the continental shelf. Proposition No 3 (1986-87) to the Odeisting and Recom No 18 (1986-87) from the Odelsting Amendment to the Petroleum Taxation Act. PROPOSITIONS 1997-98 Proposition No 61 (1986-87) to the Odelsting Proposition No 1 (1997-98) to the Storting and and Recom No 85 (1986-87) from the Odelsting Budget Recom No 9 (1997-98) from the Storting Amendments to the Petroleum Taxation Act Ministry of Petroleum and Energy. (equity share transfers offshore). Proposition No 1 Supplement No 3 (1997-98) to Proposition No 64 (1991-92) to the Odelsting the Storting and Budget Recom No 1-14 (1997-98) and Recom No 89 (1991-92) from the Odelsting from the Storting Amendments to Act No 8 of 18 August 1911: On taxes Balancing the budget for 1998, including national on capital and incomes (Income Tax Act), etc. (chapter health insurance. 8, taxation of subsidiaries engaged in activities liable for special tax on the Norwegian continental shelf). 186 2O WHITE PAPERS Proposition No 18 (1997-98) to the Storting Proposition No 73 (1998-99) to the Storting and Recom No 56 (1997-98) from the Storting and Recom No 219 (1998-99) from the Storting Changes to appropriations in the 1997 budget relating Consent to conclude 1) a treaty between Norway and to the Ministry of Petroleum and Energy. the UK on changes to the Frigg treaty of 10 May 1976 and 2) a framework agreement between Norway Proposition No 52 (1997-98) to the Storting and the UK relating to the laying and operation of, and Recom No 204 (1997-98) from the Storting as well as jurisdiction over, supplementary submarine Report on investment delays in the petroleum pipelines. sector, plans for development and operation of Gullfaks satellites phase II and Snorre II, Proposition No 80 (1998-99) to the Storting and SDFI participation in the ethane plant. and Recom No 218 (1998-99) from the Storting Relating to a supplementary appropriation for special Proposition No 65 (1997-98) to the Storting advice in connection with the organisation of the and Recom No 252 (1997-98) from the Storting state's involvement in petroleum operations. Changes to priorities and supplementary appropriations in the 1998 budget, national health insurance. Proposition No 81 (1998-99) to the Storting and Recom No 234 (1998-99) from the Storting Capital expansion in Norsk Hydro ASA as part PROPOSITIONS 1998-99 of an offer to acquire Saga Petroleum ASA. Proposition No 1 (1998-99) to the Storting and Budget Recom No 9 (1998-99) from the Storting PROPOSITIONS 1999-2000 Ministry of Petroleum and Energy. Proposition No 1 (1999-2000) to the Storting and Proposition No 1 Supplement No 7 (1998-99) Budget Recom No 9 (1998-99) from the Storting to the Storting and Budget Recoms Nos 2 and 6 Ministry of Petroleum and Energy. (1998-99) from the Storting Balancing the budget for 1999, including national Proposition No 1 Supplement No 9 (1999-2000) health insurance. to the Storting Changes to the proposals in the central government Proposition No 1 Supplement No 12 (1998-99) budget for 2000 relating to the Ministry of Petroleum to the Storting and Budget Recoms Nos 1 and 6 and Energy. (1998-99) from the Storting Changes to the proposals in the 1998 budget relating Proposition No 18 (1999-2000) to the Storting to the Ministry of Petroleum and Energy. and Recom No 66 (1998-99) from the Storting Disposition of Statpipe 2/4-S and changes to appro- Proposition No 8 (1998-99) to the Storting priations in the central government budget for 1999, and Recom No 80 (1998-99) from the Storting etc, relating to the Ministry of Petroleum and Energy. Development of Huldra.SDFI participation in Vestprosess, development of costs on Asgard, etc, and sundry dispositions. Proposition No 23 (1998-99) to the Storting and Recom S No 51 (1998-99) from the Storting Changes to appropriations in the 1998 budget relating to the Ministry of Petroleum and Energy. 2O WHITE PAPERS 187 Useful postal addresses GOVERNMENT Ministry of Petroleum and Energy Esso Exploration and Production Norway A/S P O Box 8148 Dep, N-0033 Oslo P O Box 60, N-4064 Stavanger Tel +47 22 24 90 90, fax +47 22 24 95 65 Tel +47 51 60 60 60, fax +47 51 60 66 60 Norwegian Petroleum Directorate Fina Production Licences A/S P 0 Box 600, N-4003 Stavanger (Operated by Total Norge AS) Tel +47 51 87 60 00, fax +47 51 55 15 71 Norsk Agip AS Norwegian Petroleum Directorate, Harstad P O Box 101 Forus, N-4064 Stavanger P O Box 787, N-9401 Harstad Tel +47 51 57 48 00, fax +47 51 57 49 30 Tel +47 77 01 83 50, fax +47 77 06 38 95 Norsk Chevron AS Ministry of Local Government P O Box 97 Sk0yen, N-0217 Oslo and Regional Development Tel +47 22 13 56 60, fax +47 22 13 56 90 P O Box 8112 Dep,N-0032 Oslo Tel +47 22 24 90 90, fax +47 22 24 95 45 Norske Conoco A/S P O Box 488, N-4003 Stavanger Ministry of Finance Tel+47 51 41 60 00, fax+47 51 41 05 55 P O Box 8008 Dep, N-0030 Oslo Tel +47 22 24 90 90, fax +47 22 24 95 14 Norsk Hydro Produksjon a.s N-0246 Oslo Ministry of the Environment Tel +47 22 73 81 00, fax +47 22 43 27 25 P O Box 8013 Dep, N-0030 Oslo Tel +47 22 24 90 90, fax +47 22 24 95 60 A/S Norske Shell P O Box 40, N-4098 Tananger Tel +47 51 69 30 00, fax +47 51 69 30 30 OPERATORS Phillips Petroleum Norsk A/S Amerada Hess Norge A/S P O Box 220, N-4098 Tananger Langkaien 1.N-0150 OSLO Tel +47 52 02 66 66, fax +47 52 02 66 00 Tel +47 22 94 00 00, fax +47 22 42 63 27 RWE-DEA Norge AS BP Amoco Norge AS P O Box 243 Sk0yen, N-0212 Oslo P O Box 197, N-4065 Stavanger Tel +47 21 30 30 00, fax +47 21 30 30 99 Tel +47 52 01 30 00, fax +47 52 01 30 01 Saga Petroleum ASA Den norske stats oljeselskap a.s (Operated from Norsk Hydro Produksjon a.s) N4035 Stavanger Tel +47 51 99 00 00, fax +47 51 99 00 50 Total Norge AS P O Box 1361 Vika, N-0113 Oslo Elf Petroleum Norge AS Tel +47 22 01 95 00, fax +47 22 01 95 99 (Operated by Total Norge AS) 21 USEFUL POSTAL ADDRESSES 189 OTHER LICENSEES OTHER Enterprise Oil Norwegian A/S Norwegian Oil Industry Association (OLF) P O Box 399, N-4002 Stavanger P O Box 547, N-4003 Stavanger Tel +47 51 84 30 00, fax +47 51 84 30 40 Tel +47 51 84 65 00, fax +47 51 84 65 01 Oslo office Idemitsu Petroleum Norge a.s P O Box 2487 Majorstuen, N-0305 Oslo P O Box 1844 Vika, N-0123 Oslo Tel +47 23 08 77 79, fax +47 23 08 77 76 Tel +47 23 23 85 00, fax +47 23 23 85 01 Marathon Petroleum Norge A/S PricewaterhouseCoopers N-0245 Oslo Tel +47 23 16 00 00, fax +47 23 16 10 00 Fortum Petroleum AS Strandveien 50A, N-1366 Lysaker Tel +47 67 58 05 20, fax +47 67 58 05 05 Norske AEDC A/S P O Box 207, N-4001 Stavanger Tel +47 51 53 00 50, fax +47 51 53 00 51 Norske Moeco A/S P O Box 1545 Vika, N-0117 Oslo Tel +47 22 83 11 70, fax +47 22 83 15 62 A.S Pelican PO Box276,N-1323 H0vik Tel +47 67 58 11 40, fax +47 67 58 11 35 Petro-Canada Norge AS P O Box 528 Sk0yen, N-0214 Oslo Tel +47 23 27 73 00, fax +47 23 27 73 99 Svenska Petroleum Exploration AS c/o Svenska Preem Petroleum AB P O Box 27823 S-115 93 Stockholm, Sweden Tel +46 84 50 15 50, fax +46 86 67 24 32 Ugland Construction Company AS P O Box 128, N-4891 Grimstad Tel +47 37 29 26 00, fax +47 37 04 47 22 190 21 USEFUL POSTAL ADDRESSES V0ringbassenget I ff] HI eim OPERATORS: I I HYDRO I lAGIP I I MOBIL j I AMERADA I I SAGA I I CONOCO I I SHELL I I ELF I I STATOIL 160km Norwegian Sea (Source-. Norwegian Petroleum Directorate) 12 16 f^ ZZ.L.-1 OPERATORS: [ -I HYDRO I lAGIP fZZlSAGA ELF I~" ISTATOIL 80 160km Barents Sea (Source: Norwegian Petroleum Directorate) OPERATORS: HYDRO AGIP MOBIL AMERADA PHILLIPS BP AMOCO RWE-DEA CONOCO SAGA ELF SHELL ESSO STATOIL FINA TOTAL 0 40 80 120 160km 1 LJ U U U U U U=H North Sea (Source: Norwegian Petroleum Directorate)