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Statoils business area

Statoil module Field Development - MEK4450 - 2011

Magnus Nordsveen

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Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations

Statoils strategy

2nd hour

Example of a field development

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Oil reserves 2006 (Source: Oil & Gas Journal)

http://en.wikipedia.org/wiki/File:Oil_Reserves.png

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Alboudwarej et al. Highlighting heavy oil. Oilfield Review. 2006

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Proven Gas Reserves at end of 2004(PESA news, August/September 2005)

Russia: 24%Iran: 16%Qatar: 14%.

.

.Norway: 1.6%

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0 %

10 %

20 %

30 %

40 %

50 %60 %

70 %

80 %

90 %

100 %

Russi

a

Iran

Qata

r

Sa

udiArab

ia

Un

itedS

tate

s

Ab

u-Dha

bi

Niger

ia

Ve

nezue

la

Alger

ia

Ind

onesia

Iraq

Au

stralia

Chin

a

Tu

rkme

nistan

Norwa

y

Ma

laysia

Egy

pt

Ka

zakhsta

n

Kuwa

it

Uz

bekista

n

Ca

nada

Libya

Az

erbaija

n

Ne

therland

s

India

Ukrain

e

Pa

kistan

Boliv

ia

Oma

n

Ro

mania

Proven gas reserves are fairly concentrated

Source: Cedigaz

CIS

29,5 %

Middle East

40,9 %

North Africa

4,5 %

Sub-Saharan Africa

3,5 %

Asia

7,1 %

Latin America

4,5 % North America

5,2 %

Europe

2,9 %

OECD Pacific

1,8 %

but unconventional gas could change this picture

1,6%

30 biggest gas producing countries shares of global proven gas reserves

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Definitions (1)

Oil in place: Total estimated oil in an oil reservoir

Oil reserves: Producible fraction of Oil in place

Recovery factor: Ratio Oil reserves/Oil in place

Average recovery factor in world for conventional oil: ~30%

Presently estimated recovery factor for Oil sand in Canada: ~10%

Current recovery factor from oil fields in Norway: ~47%

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Definitions (2)

Barrel of oil equivalent (boe):

Energy released by burning one barrel of crude oil: ~1.7 MWh( 1 barrel ~ 159 litres = 0.159 m3)

Corresponds to about 165 m3 natural gas: ~1000 barrels

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Value of oil and gas

Price for 1 barrel oil: ~100$

Price for 1 boe gas (165 m3): ~50$

World oil reserves: 1200 Milliarder barrels World gas reserves: 1080 Milliarder boe

=> Value of oil is about 2 times value of gas

(CAPEX & OPEX not included)

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Task and references

Task: Discuss uncertainties in reserves due to:

recovery factor/enhanced oil recovery

measurement/estimation techniques

political factors

etc.

References (internet):

BP Statistical Review Oil and Gas Journal World Oil etc.

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Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations

Statoils strategy

2nd hour

Example of a field development

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Statoils current operations

Present in 34 countries

Angola: Largest production outside Norway

Russia: Development of Shtokman gas field

Brazil: Peregrino production started (Heavy oil) Gulf of Mexico: Deep water gas and oil fields

USA: Shale gas Skifer gass

Canada: Oil sand

UK: Wind mill farms

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Angola

Operated in Angola almost 20 years

Partners in 8 producing fields

Current: 170.000 boe/d

Pazflor field started production this summer(expected production of 47.000 boe/d)

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Russia

Partner in Kharyaga oil field

Currently 30.000 boe/d

Shtokman gas field developmentPartner in Phase 1 of development

World biggest offshore gas fields (~3 times Troll field)

550 km from shore

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Brazil

Peregrino largest operated field outside Norway

Heavy oil

Two production platforms

30 production wells FPSO

Total system simulation

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Gulf of Mexico

Partner in more than 400 licences

Deep waters (2000-3000 m)

Presalt (Large oil reservoir buried below thick salt layers)

Viscous oil Currently low recovery (10-12%)

Large challenges large potential

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Statoils key figures

Statoils production in 2010 was ~1.9 million boe/d

Oil: 1.121 million boe/d

Gas: 0.767 million boe/d

Production from outside Norway: ~0.5 million boe/d ~50% of Statoils resource base is outside Norway

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Some more numbers

Oil and gas: Snhvit gas reserves: 193 billion m3 gas Value = 290 milliarder NOK

Ormen Lange gas reserves: 300 billion m3 gas Value = 450 milliarder NOK

Aldous Major & Avaldnes: 500-1200 million boe Value = 250-600 milliarder NOK

Troll gas field: 1300 billion m3 gas (biggest gas field on NCS)

Statfjord oil field: 3500 million boe (biggest oil field on NCS)

New energy:

88 Sharingham Shoal windmills will produce each 3.6 MWh (~2 boe) can power 220.000British homes

Statoils daily gas & oil production correspond to energy from ~40.000 windmills

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Content 1st lecture

1st hour

Oil & gas reserves

Statoils current operations

Statoils strategy

2nd hour

Example of a field development

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Statoils strategy

1. Maximise the potential on the Norwegian Continental Shelf (NCS)

Tie ins to existing fields/infrastructure

Increase the recovery (Subsea processing, etc)

New independent discoveries (E.g: In Barents sea, Nordland)

2. International growth

Conventional gas and oil

Unconventional gas and oil

3. Increase our engagement in renewal energy

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Challenges

Find new oil and gas fields

Enhanced recoverySmart wells (horizontal, zones, branched)

Water/gas injection wells to maintain reservoir pressure

ESPs (pumps in wells)

Sub sea processing

TransportMultiphase to receiving facility (floater/shore)

Single phase to market

Deep waters, Harsh environment, Arctic

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Challenges

Viscocity pressure drop

Why?

Wax precipitation

Depends on composition

No problem for high GORgas condensate fields (Shtokman, Luva)

Hydrates (water + gas) ~20 oC at high pressures

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Gas condensate long range transport < 500 km

Challenges:

Pressure drop

Liquid accumulations in inclinations at low rates

Surges and slug catchers Hydrates (water+gas)

Rough seabed estimated pipeline profile

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Pressure drop liquid accumulation

High flow rate: Pressure drop is friction dominated Low flow rate: Pressure drop is gravity dominated due to liquid accumulation in

upward inclined sections of the flowline

0

50

100

150

200

250

0 5 10 15 20

Production rate [MSm3/d]

Pressure

drop

[bar]

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Liquidcontent[m3]

Pressure drop

Liquid content [m3]

Frictiondominated

Gravitydominated

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Task: Pressure drop calculation gravitydominated flow

Flow line over 100 m hill

Holdup in uphill section: 30 %

Holdup in downhill section: 0.3 %

Density of condensate: 675 kg/m3 Neglect gas

Neglect frictional pressure drop

Find pressure drop between 1 and 2

Compare with single phase flow calculation(100% holdup in upward and downward inclined sections)

1 2

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Oil field long range transport < 200 km

Currently < 50 km

Challenges: Wax, hydrates

Current solution:

Keep temperature above hydrate temp.(insulation or insulation + heating)

Pigging for wax

Future alternative: Cold flow

Transport with particles without settling on wall/plugging

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Heavy oil transport < 50 km

Challenges:High oil viscosity and emulsions =>

High pressure drop

Viscosity is very sensitive totemperature

Potential large problems during shutinsand cooldown

Current solutions for shorter distances:Production with large water cut (water

continuous oil/water mixture)

Dilution with lighter oilOutcirculation with non viscous fluid

during shutins

Athabasca Bitumen, Canada (8.6oAPI)

1

10

100

1000

10000

100000

1000000

10000000

0 50 100 150 200 250 300

Temperature (oC)

Oi

lViscosity(cp)

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Tie backs to floater/shore:Subsea production and long range multiphase flow transport

Oil reservoirs

Gas reservoirs

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Statoil New Energy

Offshore wind

Carbon capture and storage

Geothermal energy, Biofuel and Hydrogen

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Sheringham Shoal Offshore Wind Farm

Scira Offshore Energy Ltd.(Statkraft + Statoil)

50 years lease agreement with TheCrown Estate

Sheringham Shoal

Wind Farm

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Project Highlights

Installed capacity 317 MW35 km2 wind farm appr. 20 km off thecoast

Water depth 17m 22m88 wind turbine generators, each 3.6

MWStart delivering power to grid August2011

Wind Farm Highlights

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Status: Draft34 - Classification: Internal 2010-11-24

Dogger Bank Asset for growth

Target 9 GW production,potential to increase to 13 GW

Area: 8660km2 (3343 squaremiles)

Distance from shore: 125-290km (77-180 miles)

Water depth: 18-63 m (59 to206 ft)

High wind speeds >10 m/saverage wind speed across thezone

DOGGER BANK KEY FACTS

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Cost of Energy could reach grid parity in high cost

electricity markets during the next decade

Potential for further cost reduction

Lighter / cheaper turbines

Mass production

Supply chain developmentImproved installation methods

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References for Statoil

www.statoil.com

Statoil in Brief: 2010/11 (brochure)

http://www.statoil.com/http://www.statoil.com/

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Thank you