FresCo Seminar 13. – 14. May 2004 PETROMAKS - a new large Petroleum program managed by the Research Council of Norway Siri Helle Friedemann Div. for Innovation Research Council of Norway

Presentation outline: The Research Council of Norway Large programmes in general Importance of the petroleum sector Funding of petroleum research Petromaks

The Research Council of Norway AdministrationCommunication Division for Science Division for Innovation Division for Strategic Priorities Director General Staff International /EU

Division for Science Social Sciences Physical Sciences and Technology Biology and Biomedicine Staff Division Director Humanities Clinical Medicine and Public Health

Division for Strategic Priorities Future Technologies Marine Resources and Environment Society and Public Policy Staff Division Director Environmental Issues, Energy and Sustainable Development

Manufacturing, ICT and Services Biotechnology, Food Science and Tax Incentive Schemes Agricultural and Marine Research Promotion of R&D and Commercialization Energy, Petroleum and Maritime Research Division for Innovation Staff Division Director

The Research Council of Norway is: a government adviser identifying present and future needs for knowledge and research, and recommending national priorities a funding agency for research programmes and independent projects, strategic programmes at research institutions, and Norwegian participation in international research activities. The Research Council has an annual budget of some NOK 4,5 billion a co-ordinator initiating networks and promoting co-operation between research institutions, ministries, business and industry, public agencies and enterprises, other sources of funding, and users of research

Focus areas of R&D in Norway Basic science Information and communication technologies Marin science Medicine and health Interface environment/energy  Biotechnology, Materials, Petroleum New Instruments CoE and YIA RCN large programmes

Large programmes addressing major Norwegian challenges and possibilities to include long term basic R&D, and applied and industrial R&D into one thematic programme ten years perspective, at least 100 mill NOK’s in annual budgets seven large programmes have been established

Large programmes PETROMAKS (Petroleum)2004:55 MNOK  (Excluding contributions from running programs) FUGE (Functional Genomics)2004:155 MNOK NANOMAT (Nanotechnology)2004:76 MNOK NORKLIMA (Climate)2004:82 MNOK HAVBRUK (Aquaculture)2004:64 MNOK VERDIKT (ICT)2004:120 MNOK RENERGI (Clean energy)2004:149 MNOK

The petroleum sector is important to Norway Numbers 2003  20 per cent of Norway’s GDP  42 per cent of the value of the country’s exports Future challenges  increased oil recovery in exisiting fields  development of smaller fields  further exploration in general, but specifically also in environmentally sensitive areas in the North  efficiency and sustainability

The petroleum sector is important to Norway Strategic issue  The Norwegian government has relied very much on the R&D performed by the oil companies and the supply industry  Introduction of PETROMAKS gives a signal of stronger governmental engagement in petroleum R&D

Annual production of oil and gas (mil. Sm3 o.e.) Decline scenario Long-term scenario Closing the gap must to a large extent rely on development of new knowledge and technology ”We can have a perspective for the Norwegian Continental Shelf of 50 years of oil production and 100 years with gas.” Development perspectives for the Norwegian Continental Shelf

Petroleumrelated R&D is not a major issue related to norwegian r&d investments MNOK Budget 2004 incl. Finance from the reseach fund: 4,4 Mrd kr (US$640 mill) Government funding of petroleum related R&D

Financing of petroleum related R&D Sources 5 ministries  Petroleum and Energy  Trade and Industry  Environment  Education and Research  Labor and Government Administration Budget 2004  230 mill NOK (33.3 US$) Proposed 2005  480 mill NOK (70 mill US$)

Petroleum related R&D in RCN 2004 Basic R&D (100 mill NOK)  Strategic university programs (SUP)  Strategic institute programs (SIP)  Petromaks  Centres of excellence  Basic funding of R&D institutions Applied/user driven RD&D (130 mill NOK)  Petromaks  Petropol  Effets of discharges to sea  DEMO 2000 (30 MNOK)

National funding of oil and gas research in 2004 Including MNOK 28 from the The Fund for Research and Innovation Ministries: Ministry of Petroleum and Energy, Ministry of Trade and Industry, Ministry of the Environment, Ministry of Education and Research, Ministry of Labour and Government Administration. The Research Council of Norway Strategic and basic petroleum research  Basic funding  Petroforsk  SIP/SUP  CoE Approx. MNOK 100 Qualifying new technology through pilot demonstrations Demo 2000 MNOK 30 User-driven oil and gas research OG - teknologi Petromaks Approx. MNOK 70 In addition: Health, safety and the environment (HSE) MNOK 15 from the Ministry of Labor and Government Administration. Social science research on petroleum-related issues, approx. MNOK 6. Effects of discharges to sea approx. MNOK 8 from the Ministry of Petroleum and Energy and the Ministry of the Environment.

PETROMAKS SCOPE Basic research and technology development, with special attention to the supply and service industry International cooperation R&D cooperation with leading science and technology institutions and industry, may lead to maintaining a strong technological home base

PETROMAKS 2004  Concentrate on exploration and increased recovery.  The first call for proposals resulted in applications totalling a project volume of 900 mill. NOK. over the entire project period. PETROMAKS 2005  Expanding into other thematic areas to cover most of the upstream petroleum areas and also HSE. As a guidance for this expansion PETROMAKS will aim at Implementing as much as possible of the strategies and plans laid down by the government initiative OG21 (Oil and Gas in the 21th century). PETROMAKS SCOPE  Basic research and technology development, with special attention to the supply and service industry. PETROMAKS

PRIMARY OBJECTIVESSECONDARY OBJECTIVES Optimal resource managementFind and develop more resources Enhance the recovery of petroleum resources Economic development based on oil and natural gas Help enhance existing industry Contribute to the establishment of new economic activities International competitiveness Boost exports of petroleum-related goods and services Targets for PETROMAKS 2004

Important research and innovation topics in 2004 EXPLORATION The development of geophysical methods and products to improve surveys of basins and prospects, and to enhance the prediction of lithology and pore fluid. A better understanding and quantification of the geological processes that govern basin formation, sedimentation and basin scale fluid flow. The surveying and quantification of critical factors for distribution and properties of reservoir, source and cap rocks. The development of methods and products for integration and risk analysis. The development of concepts for environment-friendly exploration and less expensive exploration wells. ENHANCED RECOVERY Stimulated production. Surveying untapped oil and gas. Reservoir management, especially rapid updating and improved reservoir models. Cost-efficient transport of gas from the field. Cost-efficient drilling and drainage. Cost-efficient water treatment and water reinjection systems to increase hydrocarbon processing capacity.

International R&D – cooperation Between scientists Between institutions Between research programmes and directed internationalisation measures Between countries  Europe the main route  North-America the strongest R&D-region

 Petromaks applications --           2004  2005  2006  2007  2008  KNOK  FP  UIP  KMB

Thank you for listening!