The Shelf in 2018 10 January 2019| Director General Bente Nyland - - PowerPoint PPT Presentation

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The Shelf in 2018 10 January 2019| Director General Bente Nyland - - PowerPoint PPT Presentation

May 29, 2023 27 likes •373 views

The Shelf in 2018 10 January 2019| Director General Bente Nyland High activity Heading for a new production record in 2023 Investments will increase in 2019 Reduced costs High growth in reserves More exploration Record

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The Shelf in 2018

10 January 2019| Director General Bente Nyland

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High activity

  • Heading for a new production record in 2023
  • Investments will increase in 2019
  • Reduced costs
  • High growth in reserves
  • More exploration
  • Record number of production licences
  • Highest resource growth from discoveries since

2014

  • Medium-sized companies playing a larger role

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Investments

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Oil price

Source: EIA, Europe Brent Spot Price FOB 10 20 30 40 50 60 70 80 90 100 2015 2016 2017 2018 2019

USD per bbl

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50 100 150 200 250 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Billion 2019-NOK Discoveries Ongoing field developments Fields in production (2015-2018) Fields in production before 2015 5

Continued high investments – growth in 2019

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Substantial reduction in average well cost

100 200 300 400 500 600 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Million 2019-NOK

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50 100 150 200 250 300 350 400 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Billion 2019-NOK Shutdown and final disposal Other costs Exploration costs Investments Operating costs 7

Stable activity level in next five-year period

– total costs

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Production

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Headed for new production record in 2023

1 2 3 4 5 50 100 150 200 250 300 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Million barrels oe per day Million Sm³ oe per year Gas (40 MJ) NGL Condensate Oil

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1 2 3 4 5 50 100 150 200 250 300 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Million bbl oe per day Million Sm³ oe per year Historic Undiscovered resources Resources in discoveries Resources in fields Reserves 10

Production forecast up to 2030

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Great diversity

10 20 30 40 50 60 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of companies European gas/power companies Medium-sized companies Small companies Majors Large Norwegian companies

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Small and medium-sized companies account for a larger share of production

Owned production from the Norwegian shelf distributed by company group (exclusive Statoil/Equinor and Petoro) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Major international companies Small and medium-sized companies European gas/power company

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Development and operation

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Many fields in production and well-developed infrastructure

10 20 30 40 50 60 70 80 90 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 Number of producing fields Producing fields

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15 Photo: Equinor Polarled

Aasta Hansteen

– new field in production gives new infrastructure in the northern Norwegian Sea

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Development plans submitted in 2018

– significant investments yield substantial values

Troll fase III

Johan Sverdrup byggetrinn 2 Troll fase 3

Illustration: Equinor Illustration: Equinor Illustration: Wintershall

NOVA

New, stand-alone facilities Further development and use of existing infrastructure

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Yme (new development) Repsol Skogul Aker BP Snorre (SEP) Equinor Ærfugl Aker BP Johan Castberg Equinor Valhall West Flank Aker BP Fenja Neptune Nova Wintershall Troll (Troll phase 3) Equinor

Development plans approved in 2018

– further development of the Shelf

New, stand-alone facilities Further development and use of existing infrastructure

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Fenja Neptune Njord Equinor Bauge Equinor

Njord + Fenja + Bauge

– new future in mature area

Foto: Equinor Approved PDO 2018 Approved PDO 2017

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More and better use of data and new technology creates values

Photo: Aker BP

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Honour and glory for increased growth in reserves…

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Continued growth in oil reserves requires decisions

0,0 1,5 3,0 4,5 6,0 7,5 200 400 600 800 1 000 1 200 1 400 2013 2015 2017 2019 2021 2023 Billion bbl oil Million Sm³ oil

Goal for reserves growth New developments IOR

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Emission-reducing measures

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Will store CO2

– first application for exploitation permit on the Shelf

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Exploration

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25 16th round 17th round 18th round 19th round 20th round 21st round 22nd round 23rd round 24th round NSA2000 NSA2001 NSA2002 APA2003 APA2004 APA2005 APA2006 APA2007 APA2008 APA2009 APA2010 APA2011 APA2012 APA2013 APA2014 APA2015 APA2016 APA2017 10 20 30 40 50 60 70 80 90 100 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Record number of awards in 2018

87

PRODUCTION LICENCES

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High exploration activity

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Most wells in areas near infrastructure

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11 discoveries – good resource growth

Hades/Iris Balderbrå Skruis Frosk

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More than half remains

Undiscovered resources Contingent resources in discoveries Contingent resources in fields Reserves 25% 4% 5% 19% Produced 47%

Total resources: 15.6 billion Sm3 oe

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Industry must explore for gas

20 40 60 80 100 120 1995 2000 2005 2010 2015 2020 2025 2030 2035 Sales gas, billion Sm3 Uoppdagede Ressurser i funn Ressurser i felt Solgt

825 545

Barentshavet nord

480 685

Barentshavet sør

345 395

Norskehavet

480 245

Norsjsøen

Resources, million Sm3 o.e.

North Sea Norwegian Sea Barents Sea South Barents Sea North

Oil Gas

Undiscovered Resources in discoveries Resources in fields Sold

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The Northern areas – important for making major discoveries

  • Mapping in the Barents Sea North

reveals major structures

  • Mapping continues in the

northeast towards Russia

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Mohns ridge

Seabed minerals – a new chapter?

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  • High activity
  • Headed for record production in 2023
  • More gas to Europe

The Norwegian oil and gas story – barely half way

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Thank you for your attention!

www.npd.no