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Hoop High Hopes and Challenges Bernhard Krainer | OMV (Norge) AS Annual SPE Workshop in Arctic Norway The Workshop focuses on technical and operational challenges in a cost effective perspective for the arctic region within reservoir


  1. Hoop High – Hopes and Challenges Bernhard Krainer | OMV (Norge) AS

  2. Annual SPE Workshop in Arctic Norway The Workshop focuses on technical and operational challenges in a cost effective perspective for the arctic region within reservoir drainage strategy, reservoir management, drilling & well, subsea and hardware. 2 | OMV (Norge) AS, March 11, 2015

  3. Content Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Drilling in Shallow Reservoir Facilities Requirements Location and weather Stakeholders Summary 3 | OMV (Norge) AS, March 11, 2015

  4. Build up of significant asset portfolio since 2007 Exploration Appraisal Selection / FEED Execution Production Zidane Edvard Grieg, Gullfaks Edvard Grieg Aasta Hansteen Wisting 36 Licences Gullfaks OMV Polarled Luno II Zidane 9 Operated Gudrun position Ivar Aasen Shetland/Lista Production ~50 kboe/d by end 2014 up to 80kboe/d in 2017 4 | OMV (Norge) AS, March 11, 2015

  5. Skijumping: Main Sponsor of Norwegian National Team 5 | OMV (Norge) AS, March 11, 2015

  6. OMV: Barents Sea Portfolio & PL 537 HOOP HIGH 11 Licences in Barents  2 operated  PL 537 awarded Q2/2009  3D shot in 2009  Hanssen Prospect defined 2010  Wisting 2 wells in Q3/Q4 2013  1 well in Q2 2014  License extension to  May 15, 2016 Appraisal Programme  2015: Drill Bjaaland  2016: Plans for up to  two additional wells 6 | OMV (Norge) AS, March 11, 2015

  7. PL 537 Wisting : Structure & Resources  Wisting consist of 5 segments:  Wisting Central • Drilled 2013  Wisting Central West  Wisting Central South  Hanssen • Drilled and tested 2014  Hassel  Bjaaland • Planned for Q2/2014 P90 P50 P10 Stø + Fruholmen MMSTB MMSTB MMSTB  Total Wisting Resources in PL 537 Recoverable Res. 200 300 500 7 | OMV (Norge) AS, March 11, 2015

  8. 7324/8-1 Wisting Central Well Summary- Discovery Well – Sept 2013 Wisting Central  Well Objectives:  Test Jurassic prospectivity (Stø Formation)  Well Results: Very shallow reservoir – only 250  below seabed  Upper part homogeneous with good properties,  Lower part heterogeneous; but still sand rich  Well with 50-60m oil column;  Central segment 60-160 mmbo recoverable oil  Extensive data acquisition and sampling , no DST AI  Secondary Target:  Snadd Formation, tight, shows only 8 | OMV (Norge) AS, March 11, 2015

  9. Content Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Drilling in Shallow Reservoir Facilities Requirements Location and weather Stakeholders Summary 9 | OMV (Norge) AS, March 11, 2015

  10. Reservoir Challenges Wisting has some unique conditions  Shallow reservoir  250m below seabed  Reservoir conditions  Low Pressure 70 bars  Low Temperature 16 ° C  No comparable case studies  Other Realgrunnen prospects/leads on Hoop High will – if successful - face equivalent challenges 10 | OMV (Norge) AS, March 11, 2015

  11. Reservoir – how much can we get out? Drive Mechanisms  How strong is aquifer ? 20  Current reference studies includes:  Water injection as drive mechanism  Horizontal production wells 80  Subsea multi-phase pumps Recovery Factor  A big uncertainty  Ranges from low 20’s to 50+ % 55 45  ? Contribution from heterogeneous part  Major influence on economics 11 | OMV (Norge) AS, March 11, 2015

  12. Horizontal Wells: None drilled offshore at this depth Well Design and Planning  Well design limited by kill simulation results  Cap rock integrity & barrier placement  BHA design (high dog legs, limited weight on bit, high surface RPM)  Uncertainties in building behavior  Hole cleaning in low pressure /high permeable sandstone reservoir  Challenging completion design Horizontals would be essential for development concept - less wells and higher recovery Prove feasibility of horizontal wells for Concept Selection 12 | OMV (Norge) AS, March 11, 2015

  13. Facility Challenges – Sub-Sea Subsea  Wells distributed over a large area  Not much pressure to “play with”  Pressure boosting required to keep flow rates high and back pressure on wells low.  Trade-off between CAPEX (pre-installed equipment and piping) and production rates Work in progress: All boosting mechanisms (sub-sea and down-hole) Experience transfer (partners, leading vendors ) for “sub -sea factory” equipment 13 | OMV (Norge) AS, March 11, 2015

  14. Facility Challenges – Flow Assurance Hydrates:  Early field life - Low temperatures, low pressures. Outside hydrate zone.  Late field life - higher water cut, higher density - pressurizes fluid into the hydrate zone. Wax:  Studies ongoing to determine impact  Round trip pigging - adds to sub-sea CAPEX Solutions under review: Hot oil circulation, direct electrical heating, chemicals 14 | OMV (Norge) AS, March 11, 2015

  15. Facilities Challenge - Power supply HOOP High is far off existing Infrastructure - not like in North Sea – Stand alone solution needed  Potential oil development at Wisting, but limited associated gas  GOR 37-50 Sm3/Sm3  Need to maintain oil rate for sufficient gas to power generation  No opportunities to buy/import from a near-by gas export line  Too far for Power from Shore Solutions under review: Re-inject excess gas in early life, produce back in late life (needs sub-surface studies) or dual fuel solutions 15 | OMV (Norge) AS, March 11, 2015

  16. Facility Challenge: Installation Design  Floater concept – 400 water depth,  What type of floater  Ship, Spar, Buoy-shaped?  How big – capacity, storage needs  Wisting only  Hub concept for area  Overall design concept  Winterization  low maintenace  new standards?  Export – shuttle tanker (Veidnes) or pipeline 16 | OMV (Norge) AS, March 11, 2015

  17. Location Challenge - HSSE  Remote location  Northernmost discovery ever in Norway (310 km from Hammerfest)  Low density of resources in the area  Medevac to Tromsø, up to 4 hours or more  Telemedicine solution plus two nurses on board  Long periods of dense fog expected  Evacuation solution independent of Helicopters  Stand by vessel with capability to operate in harsh weather is the primary resourse 17 | OMV (Norge) AS, March 11, 2015

  18. Location Challenge – Weather & Environment  Long-term observations & detailed data for Hoop Area are sparse  PL537: Metocean buoy installed at Wisting  Collaborating with other Barents Sea operators and relevant Authorities to expand knowledge of Barents Sea operating conditions  Polar lows, fog in summer, prevailing wind directions etc.  Barents Sea in general more “friendly” met-ocean conditions than Norskehavet  Collaboration to better understand the marginal ice zone eco-system 18 | OMV (Norge) AS, March 11, 2015

  19. Location Challenge – Oil Spill  Extensive simulations of diverse spill scenarios based on actual oil and reservoir properties  Strict oil spill recovery requirements  Spill detection within one hour  SECurus detection system (radar plus IR)  NOFO vessel at location  Full barrier I and II in place within 24 hrs  DST was seen by satellite... Formal collaboration agreement with main Barents sea operators on a wide range of arctic HSSE issues in place now.  Barents Sea Exploration Collaboration (“ BaSEC ”) established on March 9, 2015 19 | OMV (Norge) AS, March 11, 2015

  20. Location Challenge – Where is the Ice? HOOP HIGH HOOP HIGH Average sea ice concentration map for December Average sea ice concentration map for January 20 | OMV (Norge) AS, March 11, 2015

  21. Non-Technical Challenges  Local Communities & Stakeholders  Fishing & Tourism  NGO’s & Climate Change Discussion  Image taken from Transocean Barents, May 31, 2014 21 | OMV (Norge) AS, March 11, 2015

  22. Hoop High Challenges – Conclusions  Resources:  Wisting – has proven up material subsurface potential – a shallow and unique reservoir in Jurassic Realgrunnen  Other plays – Snadd & Kobbe (Triassic) – attempted but not successfull to date  Development challenges  Primarily driven by resource volumes & shallow reservoir  Secondarily by limited infrastructure and logistics for location  Commercial challenges (oil price ..) need to be resolved  Way Forward  Confirmation of additional potential in the future (23 rd Round fwd.) will provide for development of hubs & regional infrastructure  OMV committed to mature Wisting and establish a PDO in 2019 22 | OMV (Norge) AS, March 11, 2015

  23. Content Introduction - OMV in Norway Wisting Discovery General Challenges Reservoir Challenges Drilling in Shallow Reservoir Facilities Requirements Location and weather Stakeholders Summary 23 | OMV (Norge) AS, March 11, 2015

  24. Thank you! Bernhard Krainer | OMV Norge AS Bernhard.krainer@omv.com 24 | OMV (Norge) AS, March 11, 2015

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