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FORCE WORKSHOPFuture Petroleum Research Directions

April 8-9 2002

Liv LundeInstitute for Energy Technology

P.O. Box 40, N-2027 Kjeller, Norway

The Role of the Petroleum Institutes in the Petroleum Cluster

(OG21)

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Norwegian Petroleum Institutes (2001)

Contracts bill NOK*)

Number of Scientists

RF Rogaland Research 102 85

CMR Christian Michelsen Research ca 40 35

IFE Institute for Energy Technology 70 65

SINTEF-group 318 251

Total 530 436 -

*) Share of export 20 – 25%

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Rogaland Research and Sintef Petroleum Research

Enchanced Oil Recovery

Utility: Enhanced production rate from 30% to 45%

Reserve value increases with NOK 500-600 bill.

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Christian Michelsen Research Increased safety precautions on processing plants for natural gas

Utility: More than 60 platforms in the North Sea are constructed/ modified for increased safety related to gas leakage

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Institutt for Energy Technology and Sintef Petroleum Research

Multiphase transport in pipes

Utility:

Transport of oil and gas in the same pipe over long distances

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MARINTEKMarine constructions

Utility:

New cost efficient solutions for Norwegian waters

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Value Chain from idea to product

Basic Research Strategic Research

User driven R&D Demonstration

Leading productsCompetenceAdded Value

University

Contractor Industry

Oil Companies

Institutes

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The linear model

The teamwork model

Fund.research

Appliedresearch

Innovation prod. dev. Production Sales Market

Society

START 1 2 3 4 FINISH

Fund.research

MarketSociety

Appliedresearch

Innovationprod.dev.Sales

Production

Many Starts & Finishessimultaneously

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StudiesProblem solving

Technology developmentprojects

Strategic Institute Programmes (SIP)Basic studies and

increase of competence

Customer

Customer/NRC

NRC/Institute (Customer)

Financing

months

0.5-3 years

3-5years

10%

70%

20%

NRC = Norwegian Research Council

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OG21National technology strategy for value creation

and increased strength of competence within the oil and gas cluster

Aug. 2000 KONKRAFT groups of top managers

Aug. 2000 Working party to establish national technology strategy

Mar. 2001 Preliminary report delivered

Aug. 2001 Board establishedChairman M. Loktu, Statoil

Nov. 2001 Secretariat established

Jan. 2002 Report to and meeting with government representatives and ministers

April 2002 Draft final report completed

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OG21

Main targets• Secure optimal economical development of the resources on

the Norwegian Continental Shelf• Strengthen the petroleum industry’s international force of

competition

VisionWe want: world class competence

a leading global industry

We want to be: the most productive province of the Shelf

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The Organisation of OG 21

OG 21 Board

OG 21Secretariat

Group. 1

Group. 2

Group. 3

Group. n

The Oil and gas cluster/Forum of top leaders

Recruiting Demo 2000 & commerciaisatinn

IndustrialR&D

Board of Program IE/ Oil and gas, NFR

Planning and evaluationNetwork

Priority of fields/resources

Project grants

OG 21 Forum

Ministry of Petroleum and Energy

Strategic Research

Board of Program, NT, NFR

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• Important link between educational insitution and industry- Build-up of competence via strategic research

- Education of PhD students and exchange of researchers

- Training/education of personnel for the industry

• Proactive in promoting new solutions- Targeted research towards applications

• Large group of international customers in leading edge technology

- Updated on technology development in other parts of the world

- Transferring new knowledge and technology to Norwegian companies

• Maintaining technical skill and competence in a field with large turbulence within oil companies and industry

The Research Institutes' position in OG21

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SINTEF-IFE Multiphase Development

• R&D Investment in institutes

500mill NOK in 1983-95

TROLL FIELD• Savings in:

Investment 500millProduction 500mill pr.y

• Total Savings30 mrd. NOK

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TotalFinaElf

TotalFinaElfStatoil

Norsk Hydro

Mærsk

Agip

TexacoFMCAker

OLGA USERS

MSI

J NOC

Petrobras

ESI

Saudi AramcoChevron

ReinertsenAkerKvaerner

FantoftBechtel

DOD

ABB

Advantica

Granherne

Intec Snamprogetti

OFFICESAGENT

Legend:

ShellBP

Doris

RockwaterShell

Odebrecht

Kværner

TridentTechnip

Sable Island

ConocoPhillips

BP

ONGC

IntecIntec

Kværner

AltraGenesis

Kværner Oil & Gas

FMC Kongsberg Subsea

ExxonMobil

Granherne

Pemex

R J BrownJ P Kenny SASP

Genesis

Smith Rea

CoflexipStolt Offshore

South Pars

TechnipStork

Intec

BP

OKIOC

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World leading R&D at Norwegian Institutes Rogaland Research Drilling and well technology, reservoir control, enhanced

production, down hole water shut-down, supervision of marine environment

Christian Michelsen Research Gas safety/explosions, ultra sound fiscal gas measurement, fluid flow measurement, virtual reality-visualisation

Institute for Energy Technology Tracer technology, internal corrosion, modelling of multi flow transport, MTO-safety

SINTEF-group - Petroleum Research Reservoir modelling, rock mechanics, seismic method

development, gas hydrates, multiphase technology

- Energy Research Burning of gas, LNG

- Material Technology Stainless materials, fracture mechanics

- Chemistry Modelling of oil contamination

Marintek Marine operations – sub sea technologyHydrodynamic modelling

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Expectations to OG21Cluster Agreement on Strategy• Define main challenges

• Agreement on the various actors’ role in the cluster

• Promote co-operation between the various actors - avoid conflicts of interest

Focused and increased effort on targeted fields of development

Focused and co-ordinated marketing of Norwegian competence• Increased export of Norwegian products and services in an international market

Considerable increase in Government funding needed to secure prioritized long-term R&D activities for years to come

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CONCLUSIONSChallenges for the Institutes

• Further focus on niches where Norway and the individual institute has comparative advantages such as unique facilities or unique competence

• More uniform and coordinated marketing of the institutes towards a global marked as an attractive partner in the petroleum cluster

• Maintain and strengthen our international competitive competence as suppliers of R&D at the premises of the industry. Closer co-operation also with universities and contractor industry