Equinor ASA · OSL:EQNR
Equinor ASA — Statoil — Jefferies Global Energy Conference 2014
27 slides from Equinor ASA's conference presentation, November 2014
Slide 1: Statoil US Onshore
Statoil US Onshore Jefferies Global Energy Conference, November 2014 Torstein Hole, Senior Vice President
Slide 2: US Onshore competitively positioned
US Onshore competitively positioned 2013 Eagle Ford Operator 2012 Marcellus Operator Williston Bakken 2011 Bakken Operator Stamford Marcellus 2010 Eagle Ford Austin Eagle Ford Houston 2008 Marcellus 1987 Oil trading, New York Statoil Office Statoil Asset 2
Slide 3: Premium portfolio in core plays
Premium portfolio in core plays Bakken • ~ 275 000 net acres, Light tight oil • Concentrated liquids drilling • Production ~ 55 kboepd Eagle Ford • ~ 60 000 net acres, Liquids rich • Liquids ramp-up • Production ~34 koepd Marcellus • ~ 600 000 net acres, Gas • Production ~130 kboepd 3
Slide 4: Shale revolution: just the end of the beginning
Shale revolution: just the end of the beginning • Entering mature phase – companies with sustainable, responsible development approach will be the winners • Statoil is taking long term view. Portfolio robust under current and forecast price assumptions. • Continuous, purposeful improvement is key −
Slide 5: Statoil taking operations to the next level
Statoil taking operations to the next level • Ensuring our operating model is fit for Onshore Operations • Doing our part to maintain the company’s capex commitments • Leading the way to reduce flaring in Bakken • Not just reducing costs – increasing free cash flow 5
Slide 6: The application of technology
The application of technology Continuous focus on cost, Fast-track identification, Prioritised development of efficiency and optimisation of development & implementation of potential game-changing operations short-term technology upsides technologies SHORT TERM – MEDIUM – LONG TERM • Stage Length Op
Slide 7: Increased value from well manufacturing
Increased value from well manufacturing • Total well cost ~ 90% of upstream capex Drilling time reductions per well from 2012 to 2013: Drilling cost reductions – margin leverage 35 BAKKEN per well from Q1 2012 to Q4 2013: 32 31 -25% 29 28 27 • Strong improvements and competitive 23 22 23 21 21 19 re
Slide 8: Sometimes, you have to spend more to make more
Sometimes, you have to spend more to make more • In Bakken and Eagle Ford we have intentionally increased our D&C spending to implement techniques that increase recovery • Bakken: increasing our D&C costs by 10% - and increasing our recovery by 25% in 2015 • Eagle Ford: increasing our D&C costs by 1
Slide 9: Bakken: Slickwater completions
Bakken: Slickwater completions • Slickwater design is ~double flow rate, and 3-4 times total volume. Proppant about the same. Cumulative Production • In most areas, results are better to significantly better. • Next step is to test high proppant completions. • Fewer wells in latest plan, but higher
Slide 10: Eagle Ford: Rapid Improvement Injection
Eagle Ford: Rapid Improvement Injection • Shift to Rotary Steerable tools = more precise well placement = increased EUR − STO with RSS ~90% in zone, vs 60% previously • Decrease in Stage spacing = 25% increase in stages = 20% increase in EUR • Manage chokes to maximize liquids yield • Adding additio
Slide 11: Eagle Ford: Step Change in Drilling Efficiency
Eagle Ford: Step Change in Drilling Efficiency Continued improvements in cycle time n Talisman t Statoil • Best well drilled in 15 days: thought to be our theoretical “perfect” well Feet per Day • The next well was even shorter (12.7 days) • Very close to 2 rigs delivering the same wells as 3 used t
Slide 12: Summary
Summary • Relentless focus on efficiency and improvement − YOY reduction of 10% in Capex for the same activity • Increasing recovery within corporate CAPEX frame • Evolving operating model to continue improvements in our operations. 12
Slide 13: Forward looking statements
Forward looking statements This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use These forward-looking statements reflect current views about future events and are, by their nature, subject to words such as "ambition", "continue", "could"
Slide 14: Statoil update: Bank of America Global Energy Conference
Statoil update: Bank of America Global Energy Conference Jason Nye, Senior Vice President, U.S. Offshore Classification: Internal 2012-10-24 ©Statoil ASA
Slide 15: Forward looking statements
Forward looking statements This report contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use These forward-looking statements reflect current views about future events and are, by their nature, subject to words such as "ambition", "continue", "could"
Slide 16: Our growing international presence
Our growing international presence Production by region (estimate) Norway North America International 3
Slide 17: Competitively positioned in key petroleum plays
NORTH AMERICA Competitively positioned in key petroleum plays Statoil’s portfolio Chukchi Sea 1. East Coast Canada Anchorage Leismer and Corner 2. Deepwater Gulf of Mexico Calgary Offshore Newfoundland Williston St. Johns Bakken 3. US onshore Stamford Marcellus Washington D.C. 4. Canadian oil sands
Slide 18: The current Development & Production Portfolio
US OFFSHORE The current Development & Production Portfolio United States Spiderman Anadarko 18.3% Stampede Hess 25% 2018 Tahiti Chevron 25% Heidelberg Anadarko 12% 2016 Vito Shell 30% 2020 Caesar Tonga Anadarko 23.55% Julia XOM 50% 2016 Big Foot Definition phase CVX 27.5% 2015 Jack CVX 25% 2014 Exec
Slide 19: Jack – St. Malo, Heidelberg, Big Foot
Big BigFoot Foot Jack-St. Malo Heidelberg Heidelberg Jack – St.spar, MaloPort Aransas, TX October 30, 2014 Maersk Developer 6
Slide 20: Important technology for deepwater GOM
Important technology for deepwater GOM Drilling safer, faster wells Reduced cost per well drainage point Reduced drilling costs Electronic submersible pumps (ESPs) Water and gas injection Higher oil ESP image recovery 7
Slide 21: Top quartile drilling performance in deepwater
Top quartile drilling performance in deepwater 300 250 200 +54% Ft/day 150 +64% 100 50 0 Tucker-1 Krakatoa-1 Kiwi-1 Logan-1 Cobra-1 Kilchurn Bioko Candy Bars Logan-2 Martin • Perfect Well Concept, Drill Well On Paper, Standardization • Harmonized Technical Requirements to U.S. regulations • Use of N
Slide 22: Pursuing high quality prospects
Pursuing high quality prospects Chukchi Sea • 55 leases • Evaluation mode Gulf of Mexico • +270 leases • 8th largest lease holder in GOM East Coast Canada • Significant land position • 18 month drilling program starting this fall • The program will focus on both appraising the Bay du Nord discovery,
Slide 23: Gulf of Mexico – drilling top tier opportunities
Gulf of Mexico – drilling top tier opportunities • Broad-based portfolio • Testing a range of plays • Hunting for elephants -- deepwater impact discoveries • 8th largest lease holder in GoM • Leveraging experience through play-based approach 10
Slide 24: East Coast Canada: opening up extensive new oil play
East Coast Canada: opening up extensive new oil play • Bay du Nord – breakthrough oil discovery (300-600 mmbbl) • Significant running room with several prospects mapped • Drilling campaign from 3Q 2014 with West Hercules • Assessing feasibility of accelerated development 11
Slide 25: Mexico: the next energy frontier
Mexico: the next energy frontier • 2001: Statoil established Mexico City office Round 1 opportunities • 2002: Statoil-Pemex MoU signed (renewed in 2013) • 2014: Energy reform (21 Secondary Laws) signed into law (August 11). • 2015: Round 1 − 169 open area blocks: • 109 exploration • 60 production −
Slide 26: Summary
Summary • Large presence across North America • Attractive offshore portfolio – high value barrels growth • Applying technology to save costs, improve efficiency • Substantial exploration potential • Mexico – the next energy frontier
Slide 27: Q&A
Q A