Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — Investor Day (2005)
33 slides from Norsk Hydro Asa's investor day presentation, 2005
Slide 1: Mastering the NCS challenge
Mastering the NCS challenge Lars Christian Alsvik, Head of Development Norway Øystein Michelsen, Head of Operations
Slide 2: Mastering the NCS challenge
Mastering the NCS challenge z Optimize recovery from existing fields z Exploration and growth on a maturing shelf z Meeting competition from newcomers
Slide 3: Mastering the NCS challenge
Mastering the NCS challenge Innovative field World class development exploration solutions knowledge Credible project Commercial execution skills mindset Safe and efficient operations
Slide 4: Exploring for new resources in all regions
Exploring for new resources in all regions Barents Sea z Participating in 40 exploration wells in 2006-2007 Norwegian Sea z Add profitable resources to producing fields z Still growth prospects in mature areas z Exciting frontier drilling in the North Sea Barents Sea and Norwegian Sea Exploration we
Slide 5: A balanced portfolio - illustration
A balanced portfolio - illustration Frontier Growth High volume potential Smaller fields Low volume potential Low probability of success High probability of success
Slide 6: The northern areas
The northern areas z Large unexplored areas z International attention z Excellent fit between challenges and competence
Slide 7: New exploration models in mature areas
New exploration models in mature areas Peon – creativity and determination Sea bed Sea bed
Slide 8: New exploration models in mature areas: Peon
New exploration models in mature areas Peon – creativity and determination z Captured the new ideas Peon well Sea bed Sea bed z Successful drilling of a challenging well z Increased equity z Determination to develop
Slide 9: The Troll Brent discovery
The Troll Brent discovery z From exploiting the Troll Field to exploring deep underneath z Profitable additional resources to producing facilities
Slide 10: Exploration effort paying off
Exploration effort paying off Newspaper headlines 2005: ”Hydro confirms oil discovery at Fram” ”Hydro Announces Oil and Gas Discovery near Oseberg South” ”Norsk Hydro finds more oil at North Sea Troll field” ”Gas find in northern part of North Sea” ”Norsk Hydro finds gas at Stetind” ”Peon well encou
Slide 11: Exploration effort paying off
Exploration effort paying off Barents Sea Norwegian Sea Stetind Vigdis M5 Peon Astero Troll Brent Oseberg South B Oseberg South J North Sea Hydro operated Hydro partner Hejre
Slide 12: Extensive field development portfolio
Extensive field development portfolio z Technological step-outs Barents z Late-life projects Sea z Subsea tie-backs z Commercialization of marginal Norwegian Sea resources Ormen Lange Camilla Belinda Troll Future Development Vilje North Sea Field developments
Slide 13: Extensive field development portfolio: Mastering the challenges
Extensive field development portfolio Mastering the challenges Ormen Lange A technological step-out Troll Future Development Vilje – Subsea tie-back
Slide 14: Camilla Belinda
Camilla Belinda z Commercialization of marginal fields z Clustering of resources
Slide 15: Capitalizing on NCS position
Capitalizing on NCS position Barents Sea z Regular and predictable award of acreage important Norwegian Sea z Capability to execute - a competitive advantage z Securing rig capacity – an important factor North z Optimization in a large portfolio Sea
Slide 16: Securing rig capacity
Securing rig capacity z 8 floaters to be operated by Hydro on the NCS z Transocean Winner contracted for exploration activity z Innovative rig cooperation with other operators
Slide 17: Exploiting the potential in core areas
Exploiting the potential in core areas
Slide 18: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Reserves 2250 2000 1750 1500 1250 Mill bbls oil 1000 750 500 250 0
Slide 19: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Oseberg C Reserves 2250 2000 1750 1500 1250 Mill bbls oil 1000 750 500 250 0
Slide 20: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Oseberg C Reserves External gas injection 2250 2000 1750 1500 1250 Mill bbls oil 1000 750 500 250 0
Slide 21: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Oseberg C Reserves External gas injection 2250 2000 Advanced geosteering - Ness 1750 1500 1250 Mill bbls oil 1000 750 500 250 0
Slide 22: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Oseberg C Reserves External gas injection 2250 2000 Advanced geosteering - Ness 1750 Multilateral wells 1500 1250 Mill bbls oil 1000 750 500 250 0
Slide 23: Hydro is a leader in increased recovery
Hydro is a leader in increased recovery Oseberg field – targeting 70% recovery Oseberg A+B Oseberg C Reserves External gas injection 2250 2000 Advanced geosteering - Ness 1750 Multilateral wells 1500 Gas export and condensate recovery 1250 Mill bbls oil 1000 750 500 250 0
Slide 24: Innovative drilling solution increases recovery
Innovative drilling solution increases recovery Thousand bbls/day 60 Oseberg Øst 50 40 30 IOR adds 40 mill bbls 20 10 0 1999 2004 2009 2014 2019 2024
Slide 25: Continued value creation
Continued value creation Mill boe Reserves 5 000 4 000 IOR/ New plans 3 000 Decided 2 000 1 000 First Produced PDO 0
Slide 26: Aggressive development towards 2015
Aggressive development towards 2015 2015 Mill boe Reserves 5 000 Ambitions 4 000 IOR/ New plans 3 000 Decided 2 000 1 000 First Produced PDO 0
Slide 27: Grane delivered
Sates Grane delivered
Slide 28: Capitalizing on core skills
Capitalizing on core skills Troll - Oseberg gas injection —
Slide 29: Capitalizing on core skills
Capitalizing on core skills Troll - Oseberg gas injection Troll horizontal multilateral wells
Slide 30: Capitalizing on core skills
Capitalizing on core skills Troll - Oseberg gas injection Troll horizontal multilateral wells Grane - gas injection and multilateral wells
Slide 31: Targeting more than 60% recovery
Targeting more than 60% recovery Reserves Mill boe 1 000 Ambitions Continued drilling 750 IOR 500 Decided 250 PDO Produced 0
Slide 32: Exploiting the potential in core areas
Exploiting the potential in core areas 10 000 IOR Decided Mboe 5 000 Produced PDOs 0
Slide 33: NCS summary
NCS summary z 64% success rate in exploration on NCS in 2005 z Aggressively pursuing IOR opportunities in core areas z Expect production from NCS of 600 000 boe per day in 2010 54755_13a_NCS Hydro Media 12 2005