Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (December 2005)
16 slides from Norsk Hydro Asa's investor day presentation, December 2005
Slide 1: International breakthrough and plans
International breakthrough and plans Kjetil Solbrække Head of International Business Development, Oil & Energy
Slide 2: Sources of longer-term production growth
Capital Markets Day 2004 Sources of longer-term production growth 1 000 boe/day Acquiring resources Exploration Existing Short Medium Long
Slide 3: The world of hydrocarbons is changing
The world of hydrocarbons is changing Stronger competence required in the future Historically The future Large discoveries and light oil Smaller discoveries and heavy oil Accessible reserves Restricted access/ political unrest Limited environmental constraints Sustainable development ’’The days of e
Slide 4: Internationalization focus
Internationalization focus NCS Russia Americas Middle East %-share of world Africa total resources Oil Gas Hydro focus areas Source: International Energy Agency
Slide 5: Hydro is capitalizing on deep water competence
Internationalization focus Hydro is capitalizing on deep water competence Reserves (mm boe) Mexico representation office opened 4Q 2005 50 000 40 000 Hydro presence Yet-to-find reserves 30 000 Remaining reserves 20 000 10 000 0 US GoM Mexico Mauritania Brazil Nigeria Norway Indonesia India Canada Eq
Slide 6: Spinnaker exploration
Spinnaker exploration Attractive portfolio with substantial growth platform The company z Highly successful US Gulf of Mexico specialist z 45 producing fields and discoveries z 7 deepwater fields z Production from 38 blocks on the shelf Key figures z Proven reserves (mmboe) 62 z Expected reserves1)
Slide 7: The Front Runner – reserves and production
The Front Runner – reserves and production Initial plans z Current status from operator - In-place resources are there - More wells are needed - Longer and lower production plateau z Hydro basis for bid Hydro basis - Based on NCS experience and drilling competence - Basis for bid in line with curren
Slide 8: Pioneer in new technology
Pioneer in new technology Planning ahead for Increased Oil Recovery Oseberg: Increased oil recovery – gas injection Troll: Increased oil recovery – horizontal wells Grane: Increased heavy oil recovery – gas injection and horizontal wells Chinook: Increasing heavy oil recovery – horizontal wells
Slide 9: Hydro and the Chinook field
Hydro and the Chinook field z Entry vehicle into Brazil z Large in-place resources z Successful well-test proven commercial rates z Significant upside utilizing Hydro’s competencies - Well technology - EOR insight (polymer flooding) 54755_4_Int • Hydro Media • 12.2005 • 9
Slide 10: Business case based on recovery factor
Business case based on recovery factor 40 Recovery factor (%) 30 20 10 0 Industry average Long horizontal w ells Possible future IOR/EOR
Slide 11: Stepping up activity in the Middle East
Stepping up activity in the Middle East Libya: Operatorship secured
Slide 12: Stepping up activity in the Middle East
Stepping up activity in the Middle East Libya: Operatorship secured Iran: World class discovery and further exploration
Slide 13: Stepping up activity in the Middle East
Stepping up activity in the Middle East Libya: Operatorship secured Iran: World class discovery and further exploration Iraq: MoU’s signed with Iraqi authorities
Slide 14: Long-term commitment to Russia
Long-term commitment to Russia z Shtokman short list z 15 years of cooperation z Preparing to drill Well 7 in 2006
Slide 15: Exploration acreage secured world wide
Exploration acreage secured world wide NCS Russia Americas Middle East Africa Current E&P activity Frontier E&P activity
Slide 16: Becoming an international oil-company
Becoming an international oil-company Oil and gas production 1 000 boe/day z Shtokman is first priority 160 z Continued business development in 140 core areas 120 z Middle East to play a key role 100 80 z 30-40 exploration wells annually 21% going forward CAGR 60 18% 40 CAGR 20 0 2000 2005 2010