Energy Efficiency and Ecological Safety KazEnergy Forum 2001 Astana, October Nick Maden Senior Vice President Statoil Exploration International 1 -

Firm commitment to health, safety and the environment Our values guide and drive our performance Stringent ethical requirements and code of conduct We embrace an open and including leadership style

Health, safety and the environment (HSE) Serious Incident Frequency, SIF

Environmental Impact Factor (EIF) Toolbox

Towards Zero Harm with EIF Zero Harm Goal Conserving biodiversity Limiting emissions and discharges Key Environmental Aspects Oil and natural components in produced water Chemicals in produced water and discharges for drilling & wells Emissions of NOx and CO2 from power generation and flaring Ballast Water Waste Acute discharges

Produced Water Management EIF Tool, (2000) Water treatment technology CTour PECT-F/ EPCON / Mares Tail Zero harm Reduction/optimisation of chemical use Re-injection or treatment & disposal Chemical Substitution - Environmentally Responsible chemicals

Drilling Discharges Management Drilling Fluid (Mud) & Cuttings water based drilling fluid instead of oil based drilling fluid, if possible.water based drilling fluid instead of oil based drilling fluid, if possible. Reuse of drilling fluids (batch drilling, storage facilities)Reuse of drilling fluids (batch drilling, storage facilities) Options for handling cuttings from drillingOptions for handling cuttings from drilling EIF Drilling Discharges (EIFDD) Based on similar risk principles as for the present EIF used for produced water dischargesBased on similar risk principles as for the present EIF used for produced water discharges Inclusion of risk in the sedimentsInclusion of risk in the sediments Short-term stress in the water column versus long-term stress in the sedimentShort-term stress in the water column versus long-term stress in the sediment

Reduction in use and discharge of hazardous chemicals on NCS from 2000 to 2005 Green chemicals, tons Black chemicals, tonsRed chemicals, tons Yellow chemicals, tons

Management of Emissions to Air Maximize the efficiency of power generation Electrical power from shore Flare gas recovery system at several installations VOC recovery system on FPSO’s and shuttle tankers for offshore loading Low NOx burners in gas turbines (25 ppm NOx emission), since 1998 Catalytic cleaning (SCR) or gas motors on some supply boats to reduce NOx- emissions CO 2 extraction from natural gas Europe World Carbon Intensity (CO 2 kg/boe) CO2 Effective Production

Management of Emissions to Air Carbon Capture & Storage Since 1998 CO2 separated from natural gas at the Sleipner field has been injected in a deep saline aquifer – this has contributed to a 13% reduction in CO2 emission for the NCS

Oil spill contingency established in Norway 1.Oil Spill Trajectory Modelling 2.Environmental Risk Analysis 3.Oil Spill Response Analysis 4.Oil Spill Response Plan 5.Training and exercises Private Municipalitie s Government

Equipment overview

Members of NOFO Norwegian Clean Seas Association For Operating Companies More than 30 companies being active members The Operator has the main and overall responsibility for fighting an oil spill – inclusive strategic management NOFO has responsibility for tactical and operational management of the emergency resources taken into operation

Nick Maden Sen. Vice President Statoil Exploration International Thank you for listening