Standing at a new frontier
Statoil presentation NTNU 19 January 2011
Copyright©Statoil 2011.01.01 corporate presentation: Standing at a new frontier
Welcome
Introducing Statoil
Who we are
Key focus moving forward
Statoil 2011
Crossing energy frontiers
Our business strategy and platforms for growth
Health, safety and the environment
How we work
Our values
Our organisation
Facts and figures
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Key figures
Introducing
Statoil
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Who we are
• Energy company present in 34 countries with 20,000 employees
• Produced 1.96 million barrels of oil equivalent (boe) per day in 2009 (equity
production)
• About 22 billion boe in proven resources (5.4 billion as booked reserves)
• One of the world’s largest net sellers of crude oil
• The world's largest operator in waters deeper than 100 metres
• World leader in carbon storage
• The second largest exporter of gas to Europe
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Our business environment
• Demand for energy will continue to accelerate as the population and economies in the
developing world expands, with fossil fuels playing key role
• Competition for access to oil and gas resources is sharpening, economically and
technologically
• Costs of adapting to climate change is set to rise
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Key focus
moving forward
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Building growth from a firm strategy
Harsh environments
Deep water
Heavy oil
Gas value chains
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Crossing energy
frontiers
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Harsh environments
• New energy reserves are becoming more difficult to access
• A larger proportion of the world’s remaining energy sources exist in harsh environments
• We will leverage our experience and technology position to develop business in these areas
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The Snøhvit gas field, Barents Sea
• The world’s northernmost liquefied
natural gas (LNG) operation
• 5.1million tonnes of LNG. Production
period: 2007-2035
• Sub-sea installations at 300m depth.
No platforms or production vessels
• Gas transferred ashore for processing
via 143km pipeline
• Snøhvit is a carbon efficient energy
source
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Deep sea
• Reserves at greater depths demand new techniques and technologies
• For drilling, extraction, pipe-laying and maintenance
• Long experience of deepwater operations from the NCS
• Applying this knowledge to release the potential of new projects worldwide
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Operations in the Gulf of Mexico
• More than 400 exploration leases in
deep water in the Gulf
• Attractive portfolio of producing fields
and new field developments
• Highly advanced technologies –
3D seismic data, dynamic positioning,
remote control and robotics
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Heavy oil
• Heavy oil – an important opportunity for Statoil
• Peregrino project, off coast of Brazil
• Athabasca oil sands fields, Alberta, Canada
• Experience in heavy oil production gained from other fields
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Peregrino, Brazil
• Statoil’s largest operatorship outside
Norway *
• 85 km off the coast of Brazil in water
depths around 100 meters
• Showcases Statoil’s strengths in
extraction and reservoir management
• Production is expected to start
towards the end of first quarter 2011
* In June 2010 Statoil agreed to sell 40 % of the Peregrino field to
Sinochem group. The approval is subject to government approvals
in Brazil and China.
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Gas value chain
• NCS is the backbone of our gas business
• Second largest supplier of gas to Europe
• International gas value chains: shale gas in USA, Algeria in North-Africa, Shah Deniz in
Azerbaijan
• Natural gas is an attractive long-term source of energy: cost efficient, abundant reserves
and with a small carbon print
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Troll A, Norway
• Troll A represents 40% of total gas
reserves on the Norwegian continental
shelf (NCS)
• Supplying gas to Europe since 1996.
Reserves estimated to last 70 years
• Gas transferred via 65km pipeline to shore
for processing
• Processing on land reduces operating
costs
• Powering the production platform from
shore reduces emissions of CO2 and
nitrogen oxides
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New energy and carbon efficiency
• Our strategy is to have a stepwise growth within renewable energy which we consider a promising growth
area
• Our main focus is on offshore wind power where we add value by using our extensive competence from
offshore oil and gas activities
• We are a world leading CO2 storage operator.
• Production on NCS 60% more carbon efficient than the world average
• We are committed to reduce carbon footprint at every production stage
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Sheringham Shoal, UK
• The UK’s fourth largest offshore wind
farm
• NOK 10 billion joint venture with
Norwegian utility, Statkraft
• 88 wind turbines over 35 sq km,
supplying enough power for 220,000
homes
• The project started installation of the
wind turbines and laying of cables in
2010.
• The project is scheduled to be finished
early 2012
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In Salah, Algeria
• Algeria’s third largest gas processing
facility
• One of Statoil’s three world class
carbon capture and storage (CCS)
projects
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How we
work
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Health, safety and the environment (HSE)
“Our ambition is to be the industry
leader in HSE. We must therefore
improve in this area, and HSE
must be the first priority in
everything we do. Should a conflict
arise, safety must always take
precedence over production.”
President and CEO Helge Lund
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What we do – and how we do it
• A values-based performance culture
• Firm commitment to health, safety and the environment (HSE)
• Stringent ethical requirements and a code of conduct which promotes personal integrity
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The Statoil
organisation
Helge Lund
Stavanger
CEO
Chief executive officer
Stein Egil Næss
Torgrim Reitan
Stavanger
Stavanger
COA
Corporate audit
Øystein Michelsen
Peter Mellbye
Stavanger
Oslo
DPN
Development and
Production Norway
Development and
Production
International
CFO
CFO organisation
Bill Maloney
DPI
Houston
Eldar Sætre
DPNA
Development and
Production North
America
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Stavanger
MPR
Marketing,
Processing and
Renewable Energy
Tove Stuhr Sjøblom
Reidar Gjærum
Stavanger
Oslo
CSO
Corporate staffs and
services
Corporate
communication
Margareth Øvrum
Tim Dodson
Stavanger
Oslo
TPD
Technology, Projects
and Drilling
Exploration
CCOM
John Knight
EXP
London
GSB
Global Strategy and
Business
Development
Facts and
figures
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Third quarter results
• 14% increase in liquids prices
• 17% lower equity production
28.2
NOK bn.
• 8% increase in gas prices
28.3
13.8
6.6
1Q09 3Q 09
Net operating income
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1Q10 3Q 10
Net income
Quarterly effects on production
Changes 3Q 2009 to 3Q 2010 per category
1,874
~ 60
~ 90
1000 boe/d
~ 1401
~ 302
Q3 2009
1
Turnaround
liquids
Turnaround
gas
Expected natural decline, Gullfaks C06 well and rig issues, reallocation from 2Q (20’ boed), other
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Other
2
1,552
1552
Production
permit
Q3 2010
Ormen Lange oil and gas impact
Guiding
2010
• Equity production
• 1.9 million boepd
• Unit Production Cost at NOK 36-37 per boe
• Capex and exploration:
• Capital expenditures ~USD 13bn*
• Exploration activity ~USD 2.3bn.
2012
• Equity production:
• 2,060 – 2,160 million boe/d
Ramp up & new fields on stream 2010-2012
Tyrihans
Morvin
Thunder Hawk
Agbami
Tahiti
Marcellus
Gjøa
Vega
Vega South
Skarv
Peregrino
Leismer
PSVM
Pazflor
Eagle Ford
Caesar Tonga ph 1
Kizomba satellites
Fast track projects
Marulk
Additional production 2010-2012**
350’- 400’ boed
*Exclusive of capitalization of financial leases and acquisitions
**Estimated full year production 2012 vs. 2010 for ramp up & new fields on stream in 2010-1012
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Standing at a new
frontier
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Statoil is an international energy company with operations in 34
countries. Building on more than 35 years of experience from oil and gas
production on the Norwegian continental shelf, Statoil is committed to
accommodating the world's energy needs in a responsible manner,
applying technology and creating innovative business solutions.
Statoil is headquartered in Norway with 20,000 employees worldwide,
and is listed on the New York and Oslo Stock Exchange. For more
information, please visit www.statoil.com
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Thank you
Statoil corporate presentation 2011
Petter Eltvik
petell@statoil.com, phone: +47 91 82 09 39
www.statoil.com
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