1. OG21 TTA2 “What can change the game? Exploration and Reservoir haracterization” 13 February 2008 Norwegian Petroleum Directorate How can OG21 make a difference? Alfred Nordgård, OG21 and Shell

2. OG21 – Oil & Gas in the 21st Century Main Objectives Develop new knowledge and technology to ensure economic and environmentally sound development of the resources on the Norwegian Continental Shelf --------- Strengthen the industry’s competitive advantage in a global market by developing new and attractive technology products and systems

3. Key Challenges - NCS Sensitive Arctic Regions HSE Standards Industrial Infrastructure Sensitive Arctic Regions HSE Standards Industrial Infrastructure Gas to Market LNG/ Grid Gas to Market LNG/ Grid Deep Water Reduce CAPEX Deep Water Reduce CAPEX Mature Areas, EOR/IOR Life of Infrastructure Produced Water Mature Areas, EOR/IOR Life of Infrastructure Produced Water Stranded Oil & Gas Small Fields Tail Production Stranded Oil & Gas Small Fields Tail Production

4. Revised Main strategy

5. Sub-strategies have been established Environmental technology for the future Exploration and reservoir characterisation Enhanced recovery Cost effective drilling and intervention Integrated operations and RTRM Sub sea processing and transportation *) Deep water and subsea production technology *) Gas technologies *) only Demo2000 projects

6. Technology strategy for the Arctic September 2006

7. Contributors to the OG21 process

8. Organisational model Research and Development Demonstration and piloting

9. Norwegian Technology Advanced drilling technology

10. Troll Oil: New technologies unlocks reserves and value Jukselapp: US$ 60 * 1400 mln bbl = NOK 500 000 mln Ny jukselapp: US$ 90 * 1400 mln bbl = NOK 750 000 mln

11. Ormen Lange – Subsea to Beach

12. More oil and gas production than expected Increased recovery Decreased costs Increased income to the community R&D is worth while

13. Goal for EOR Recovery factor Todays plan is 55% OG21 strategy

14. Future drilling: BADGER EXPLORER

15. “Long-term scenario” “Decline scenario” Source: MOE Production scenarios Source: NPD NPD’s 2007 scenarios:

16. We are on the right track.. Increased funds to fundamental and basic research Demo2000Petromaks Universities Industry But – a marked dimension:

17. Evolution of Government R&D funding Funds have increased since early 90’ – but what about the future? 2007 - 2008 - ?

18. Major contribution to the economy 265mrd.kr Oljefondet 2467 mrd.kr National budget 2008 bln NOK

19. OG21 as a centre in the process Industry Academica Institute Authorities Universities Colleges National oil companies International oil companies Supplier industry Ministry of Oil and Energy Petroleum Directorate Research Institutes

20. Positive effect on production and export - Export of technology Added value from gas New areas Increased recovery Fields in production 20062020 Coordinated National R&D efforts Obtained by Increased R&D

21. Roadmap for the future

22. OG21 Vision Our vision is a sustainable petroleum industry for the next 100 years based on a cooperative approach to knowledge and technology. Thank you for your attention