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

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 number of production licences • Highest resource growth from discoveries since 2014 • Medium-sized companies playing a larger role 2

Investments 3

Oil price 100 90 80 70 60 USD per bbl 50 40 30 20 10 0 2015 2016 2017 2018 2019 4 Source: EIA, Europe Brent Spot Price FOB

Continued high investments – growth in 2019 250 200 Billion 2019-NOK 150 Discoveries 100 Ongoing field developments Fields in production (2015-2018) Fields in production before 2015 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5

Substantial reduction in average well cost 600 500 Million 2019-NOK 400 300 200 100 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 6

Stable activity level in next five-year period – total costs 400 350 300 250 Billion 2019-NOK 200 Shutdown and final disposal Other costs 150 Exploration costs Investments 100 Operating costs 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 7

Production 8

Headed for new production record in 2023 300 5 Gas (40 MJ) NGL Condensate 250 Oil 4 200 Million Sm³ oe per year Million barrels oe per day 3 150 2 100 1 50 0 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 9

Production forecast up to 2030 300 5 250 4 200 Million Sm³ oe per year Million bbl oe per day 3 Historic Undiscovered resources 150 Resources in discoveries Resources in fields 2 100 Reserves 1 50 0 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 10

Great diversity 60 50 40 Number of companies European gas/power companies 30 Medium-sized companies Small companies 20 Majors Large Norwegian companies 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 11

Small and medium-sized companies account for a larger share of production 100% European gas/power company 90% 80% Small and medium-sized companies 70% 60% 50% 40% Major international companies 30% 20% 10% 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Owned production from the Norwegian shelf distributed by company group (exclusive Statoil/Equinor and Petoro) 12

Development and operation 13

Many fields in production and well-developed infrastructure 90 80 Producing fields Number of producing fields 70 60 50 40 30 20 10 0 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 14

Aasta Hansteen – new field in production gives new infrastructure in the northern Norwegian Sea Polarled Photo: Equinor 15

Development plans submitted in 2018 – significant investments yield substantial values Troll fase 3 NOVA Troll fase III Illustration: Wintershall Illustration: Equinor Johan Sverdrup byggetrinn 2 Illustration: Equinor New, stand-alone facilities Further development and use of existing infrastructure

Development plans approved in 2018 – further development of the Shelf Johan Castberg Equinor Ærfugl Aker BP Fenja Neptune Nova Wintershall Troll (Troll phase 3) Equinor Snorre (SEP) Equinor Skogul Aker BP Yme (new development) Repsol Valhall West Flank Aker BP New, stand-alone facilities Further development and use of existing infrastructure

Njord + Fenja + Bauge – new future in mature area Foto: Equinor Bauge Equinor Njord Equinor Fenja Neptune Approved PDO 2018 Approved PDO 2017

More and better use of data and new technology creates values 19 Photo: Aker BP

Honour and glory for increased growth in reserves … 20

Continued growth in oil reserves requires decisions 1 400 Goal for reserves growth 1 200 7,5 1 000 6,0 Million Sm³ oil Billion bbl oil 800 4,5 600 3,0 400 New developments 1,5 200 IOR 0 0,0 2013 2015 2017 2019 2021 2023 21

Emission-reducing measures 22

Will store CO 2 – first application for exploitation permit on the Shelf 23

Exploration 24

Record number of awards in 2018 24 th round 2018 APA2017 2017 APA2016 23 rd round 2016 APA2015 2015 APA2014 87 2014 APA2013 22 nd round 2013 APA2012 2012 APA2011 PRODUCTION 21 st round 2011 APA2010 LICENCES 2010 APA2009 20 th round 2009 APA2008 2008 APA2007 2007 APA2006 19 th round 2006 APA2005 18 th round 2004 APA2004 2003 NSA2002 APA2003 17 th round 2002 NSA2001 2001 NSA2000 16 th round 2000 0 10 20 30 40 50 60 70 80 90 100 25

High exploration activity 26

Most wells in areas near infrastructure 27

11 discoveries – good resource growth Skruis Balderbrå Hades/Iris Frosk 28

More than half remains Undiscovered resources 25% Produced Contingent resources in discoveries 4% 47% Contingent resources in fields 5% Reserves 19% Total resources: 15.6 billion Sm 3 oe 29

Industry must explore for gas 120 100 Sales gas, billion Sm 3 Undiscovered Uoppdagede 80 Resources in discoveries Ressurser i funn 60 Resources in fields Ressurser i felt 40 Sold Solgt 20 0 1995 2000 2005 2010 2015 2020 2025 2030 2035 Resources, million Sm 3 o.e. 545 245 480 345 Oil 395 480 685 Gas 825 Norsjsøen Norskehavet Barentshavet sør North Sea Norwegian Sea Barents Sea South Barents Sea North Barentshavet nord

The Northern areas – important for making major discoveries • Mapping in the Barents Sea North reveals major structures • Mapping continues in the northeast towards Russia 31

Seabed minerals – a new chapter? Mohns ridge 32

The Norwegian oil and gas story – barely half way • High activity • Headed for record production in 2023 • More gas to Europe 33

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