eni e&p in Norway August 2012 1 eni.com eni norge has been in Norway since 1965 and are one of the main operators on the shelf. Today, we are well-established in all the three main areas on the shelf: the North Sea, the Norwegian Sea and the Barents Sea. eni in Norway The most significant single event during first half year 2012 the company was established in 1965. was the production start up of the Marulk field. On the 2nd Creating ripple effects in the north of Norway was a key of April 2012 the first gas flowed from the field. This is a condition set by the Norwegian Parliament when approving milestone in eni norge’s history as Marulk becomes our first the Goliat Plan for Development and Operation. Years before field in operation on the Norwegian continental shelf. start up, Goliat is already producing ripple effects at a national, 2011 was a busy year with the start up of drilling the Marulk regional and local level, beyond what many had expected. production wells, preparing for the first eni norge-operated For the development phase of Goliat, 65 percent of the field in production. Another milestone was achieved on contract value has been awarded to Norwegian based November 15th in South-Korea, when the Goliat FPSO was contractors, all won in international competition. As for local lifted into dry dock and the installation of almost 300 and regional content it is still early days, but several major prefabricated blocks and equipment started. contracts have been awarded to companies in the north. 2011 proved to be a solid year for Norway as an oil and gas During 2012 and 2013 contracts will be awarded to prepare nation, it also became the strongest year for eni norge since for the operational phase of the Goliat. 2 3 12 licences in the Barents Sea eni norge is the operator of 7 of these licences, whereof Goliat is under construction. We have a 30% Goliat share in the promising discoveries Skrugard and Havis. Hammerfest MAJOR PLAYER ON THE NORWEGIAN CONTINENTAL SHELF eni norge is an active participant in 51 licences and operator of 13 production licences in the North Sea, Norwegian Sea 33 licences in the Norwegian Sea and Barents Sea. We are operator in 5 of the licences. Marulk Production on the eni norge-operated As 2011 proved to be a solid year for field Marulk started in April 2012. Norway as an oil and gas nation, it also became one of the strongest years for eni norge since the company was established in 1965. Not only did revenues reach more than 21 billion NOK, 6 licences in the North Sea during the year, reserves were replaced We are operator in one licence, and own shares in Ekofisk. Ekofisk is a Stavanger with a ratio of 200%, mainly due to the significant contributor in this area. discovery of Skrugard in the Barents Sea, Goliat FPSO under construction in Ulsan: June 2012 of which eni norge holds 30%. eni norge operator eni norge partner eni’s milestones in Norway Key figures 2011 statement of income (million NOK) 1963 1965 1971 1980/1999 2003 2009 2012 operating revenues 21,532 Norway declared its sovereignty of the eni’s subsidiary, Norsk Agip A/S, set Ekofisk Field started producing the ■ The Norwegian Sea (north of the 62nd Mikkel Field started producing. Norsk Agip The Goliat PDO approved by the 2nd April: Marulk started producing. Norwegian continental shelf and its up as a limited company in Oslo. The first Norwegian oil with an eni share of parallel) opened up for exploration A/S and Fortum Petroleum AS merged Norwegian authorities. Other significant activities scheduled operating expenditures 5,902 rights to submarine natural resources. first Norwegian production licences 13.04%. This marked the opening of a activities. The company becomes a and changed name to eni norge. Yttergryta Field and Tyrihans Field started for 2012. operating profit 15,630 The first seismic exploration licences were granted. The Phillips Group was number of fields, where the company partner in more fields (1980); producing. Construction work started for new were granted. awarded 3 licences. has been an important partner: ■ Tommeliten Gamma Field started offices in Hammerfest. ordinary result before tax 15,278 ■ Cod Field and Vest Ekofisk Field producing (1988); 2005 Installation of subsea flow-lines and started producing (1977); ■ Embla Field started producing (1993); Kristin Field and Urd Field started 2010 control umbilicals and tie-ins to the tax on ordinary result 10,783 ■ Tor Field started producing (1978); ■ Heidrun Field started producing producing. Significant increase in the The Marulk PDO approval by the subsea templates. 1964 1969 annual profit 4,495 Base North Sea Agreement – Phillips, The Phillips Group made the first ■ Albuskjell Field, Edda Field and Eldfisk (1995); Goliat Field reserves. Norwegian authorities. Completion of the FPSO hull and topside Petrofina and eni set up the “Phillips important Norwegian discovery of Field started producing (1979). ■ Norne Field started producing (1997); The Morvin Field started producing assembly. production Group” for exploration, development a small gas field (Cod). ■ Ekofisk II in production (1998); by end 2010. Modification of the existing high voltage (thousand boe/day) and production in the North Sea, with ■ Åsgard Field started producing (1999). 2006 overhead lines onshore in Hammerfest. production 131 Phillips as operator. 1975 Goliat Project Organisation established. Delivery of a new standby safety vessel- Export of Ekofisk oil to Teesside in Goliat was planned to be eni norge’s first 2011 named Esvagt Aurora. England through a new pipeline. 2000 operated field in production. Start up of production drilling Marulk. Exploration activity and production Goliat first oil discovery in the Barents Goliat FPSO construction starts in the drilling of Goliat in the Barents Sea. Sea – eni operator. dry-dock. 1977 2008 Installation of all Goliat subsea Export of Ekofisk gas to Emden in eni norge opened a district office templates. Skrugard /Havis discovery in 4 Germany through a new pipeline. eni 2002 in Hammerfest in northern Norway. Marulk the Barents Sea. 5 awarded its first operatorship.Engineering Acquisition of Fortum Petroleum AS. appraisal and exploration activities in the eni norge awarded two partnerships in department moved to Sandnes. Norwegian Sea and the North Sea. the Barents Sea in the 21st licencing round. eni norge has been part of the Norwegian petroleum industry since its beginning in 1965. Safe operations with a minimum impact on the environment, creating value for society and our owners, are our goals. main operations looking north The dedicated and highly skilled people in our organisation are development eni operates in three arctic areas – Russia, USA and Norway. Goliat the most important tools in achieving our goals. Marulk and Goliat are part of eni’s long-term commitments in An active policy of searching for new resources while ensuring eni norge will during 2012 complete the development of the the North and in the arctic areas. The Goliat Field (PL 229) represents national petroleum optimum production from existing fields creates a firm basis for a Marulk Field. history, being the first oil field development in the Norwegian continued positive development of our company: as of June 2012 The Goliat development in the Barents Sea is well under way. Thanks to our operatorships at Goliat and Marulk, eni norge part of the Barents Sea. Goliat has two separate main eni norge is the operator of 13 licences and manages interests in Subsea systems are being placed at the sea bottom, the FPSO will contribute to what many people want for the northern reservoirs, both containing oil with an overlying gas cap. a total of 51 licences. is under construction in South-Korea and production drilling areas of Norway: new skills and expertise, development and The field will be developed using subsea wells linked to a will commence in the autumn of 2012. The Skrugard/Havis employment. For the company, looking north is looking at cylindrical FPSO. exploration discoveries are in an early phase of conceptual studies for opportunities – both challenging and stimulating. The operation The estimated life time for the field is 15-20 years. development. eni norge is also partner in the redevelopment of Goliat will create spin-off and employment opportunities for eni norge is continuously participating in exploration activities of Ekofisk and Eldfisk. In the Norwegian Sea, eni norge is many years. When the Goliat Field is in production, about 100 on the Norwegian continental shelf. involved in a new subsea gas compression project at Åsgard people will be directly employed to work offshore. In addition, Marulk In 2010 and 2011, together with the operator Statoil, eni norge and participate in the Skuld development which will be tied the operational office in Hammerfest will have many direct and The Marulk Field (PL 122) is an important milestone for made two new discoveries in the Norwegian Sea -– Fossekall back to the Norne FPSO. indirect employment opportunities. eni norge. On 2nd April 2012 Marulk came into production. (oil) in PL128, and Flyndretind (oil and gas) in PL 473. As operator, Marulk is the first eni norge-operated field to come on eni norge drilled the Lunde well in PL 489 in the Barents Sea. eni stream on the Norwegian continental shelf. Marulk is a gas norge has also a 30% participating interest in the Statoil-operated production and condensate field situated about 30 km southwest of Skrugard discovery in 2011 in the Barents Sea. eni norge’s interests on the Norwegian continental shelf range Norne FPSO. Marulk will make use of existing infrastructure, Two applications were submitted to the authorities in connection from Ekofisk in the south of the North Sea to the Nucula thus contributing to increased life time production at Norne.