1. Technology Programme Competitions Oil and Gas Technologies

2. Technology Programme Competitions The Strategy for the future energy mix and technology priorities is currently under review…

3. Technology Programme Competitions OIL AND GAS TECHNOLOGIES WHY ARE THEY IMPORTANT?  The UK needs to maximise recovery of its substantial indigenous oil and gas resources both to maintain a secure and diverse energy supply and to maximise economic benefits.  The development of new technology is a substantial component of the drive towards achieving maximum recovery of the resources on the UK Continental Shelf. Investment in new technologies is an important factor in prolonging the life of the UK hydrocarbon reservoirs and increasing the global competitiveness of the UK oil and gas sector.

4. Technology Programme Competitions

5. 2020 2010 UKCS “Window of Opportunity” Source DTI 2004

6. Technology Programme Competitions OIL AND GAS TECHNOLOGIES PROJECT FOCUS  Identifying additional and incremental hydrocarbon reserves (especially Geophysics, Seismic and other alternative methods of reservoir processing)  Accessing reserves cost effectively e.g. Through Tubing / Multilateral Drilling and enabling difficult oil production e.g. ‘heavy oil’  Sustaining and improving existing production from mature fields e.g. Wells / Facilities Integrity Management, Sand and Water Management, Capturing and using CO2 for EOR  Improving environmental performance with further specific environmental technology development The prime objective is lowering cost per barrel extracted and maximising recovery from UK hydrocarbon reservoirs, quantifying additional producible barrels.

7. Technology Programme Competitions PILOT Government: UK Energy Minister DTI Scottish Executive HM Treasury HSE UKTI DEFRA Scotland Office Industry Leadership Team Industry: BP Shell Total Chevron Texaco Talisman BG Group Apache Paladin UKOOA OGIA Amec Wood Group Halliburton Subsea 7 Abbot Group SLP Nessco Amicus Exxon Mobil ENI Schlumberger Technip Rowan Drilling Bel Valves Xcavo Membership

8. Technology Programme Competitions

9. Technology Priorities

10. Technology Programme Competitions

12. Keeping the Call Current “Production Capacity & Efficiency Theme 2006” Technology Gap Workshop, 14 th March 2006 at Thistle Aberdeen Airport Hotel “Access & Intervention Theme 2006” Technology Gap Workshop, 30 th March 2006 at Thistle Aberdeen Airport Hotel MEOR Meeting, May 6 th

13. Technology Programme Competitions OIL AND GAS TECHNOLOGIES PROJECT SCOPE Research & development of technologies that can make a significant contribution to DTI’s objective of maximising recovery from UK hydrocarbon reservoirs A special focus will be given to projects that address the key issues in maximising recovery from ‘Brownfields’. These technologies can come from across the full range of industry operations i.e. from enhancing reservoir understanding and development through to production enhancing technology areas. Consideration will also be given to:  technologies that will impact in the medium to long term, e.g. EOR type activities;  projects that will address environmental challenges e.g. dealing with produced water;  demonstration projects, where a key technology requires an offshore field test as part of the prototype development.

14. Technology Programme Competitions PROJECT REQUIREMENTS & FUNDING Requirements:  Industry led  Science to Business or Business to Business  At least one partner with defined end-user needs  A clearly defined route to market  Typically of 2-3 years duration  Aim to implement significant business change in 5-7 year timeframe  Typically seeking funding of £0.25m - £2.0m – Standard two stage process  Funding under £250k Fast Track OIL AND GAS TECHNOLOGIES Proposals can range from small, highly focused basic research projects, through to applied research, and to experimental development technology projects configured to produce, for example, prototypes or technology demonstrators for field testing. We particularly encourage projects which can demonstrate benefits to a number of industry sectors. An indicative £2m of DTI funding has been allocated to this area of the competition, supported by additional EPSRC funding.

15. Technology Programme Competitions Technology Managers  cameron.stewart@dti.gsi.gov.uk  01224 254077  christopher.stewart@dti.gsi.gov.uk  020 7215 1434 Questions & Answers