1. Efficiency today – opportunities tomorrow
Erik Strand Tellefsen | Statoil

2. Industry context Peer group development spend vs production
2005
2004
2003
2014
2013
2012
2011
2010
2009
2002
2006
2007
2008
2016
2015 95
115
125
120
100 90
110
105
Average production target
Average reported production growth
Oil and gas production 80 40
120
160
23.0
22.5
22.0
21.5
21.0
20.5
20.0
Production, mmboed
Development costs incurred, USD bn
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Total Shareholder Return

3. Production efficiency
Statoil has ambitious
targets
Efficiency program
Efficiency potential
Improved drilling efficiency offshore and onshore
Leaner facility and modification projects
Reduced installation and plant operational cost
Increase production efficiency
Expected annual savings
Statoil equity pre-tax; USD bn
Capex
2014
2015
2016
Opex
1.3
Production efficiency
Ref. CEO presentation Capital market update
February 7

4. Johan Castberg Licensees:
Statoil ASA: 50 % (operator) Eni Norge AS: 30 % Petoro AS: 20 %
Location/Depth:
240 km from Melkøya LNG plant
200 km from Bjørnøya
m water depth
Volumes discovered:
Mbbl of recoverable oil;
Skrugard, April 2011
Havis, January 2012
Drivis, May 2014

5. An infrastructure train?
Johan Castberg - options
An infrastructure train?
,or a robust designed fit for purpose car?
,or a lean standard solution?
202+
Barentshavet er et vekstområde.
Fra norsjøen og norskehavet, og for all annen virksomhet, vet vi at etablering av infrastruktur (prosesseringssentre, rørledninger, terminaler) er viktige.
Bortsett fra Snøhvit er Barentshavet uten infrastruktur.
Infrastruktur koster.
Winterisation
Prod. Ambition – schedule driven
Ha dette bildet i hodet.
Classification: Internal

6. Johan Castberg concepts
FPU/Oil to shore Shipshaped FPSO
FPSO with oil transport;
directly to market
via an Independent oil terminal

7. Cost reductions Target February 2015 Target June 2014 [MNOK 2014]
Alll numbers in 2014 MNOK (real)

8. Lean, cost conscious design
Turret:
Too heavy
Topside
Too complex
Living Quarter
Too sophisticated
Statoil’s overall strategy changes from 2.5 mbbl in 2020 to cost consciousness
The FPSO designed to reach the production target is now not fit for purpose anymore.
Topside is to complex, turret is too heavy, living quarter is too sophisticated and the hull is too large.
Hull
Too large
Classification: Open

9. Field layout June 2014 Skrugard Havis Drivis FPSO North South ED EA EBEC DA DB YA YB YC
Havis
Drivis CA CB CC ZA ZB CD
FPSO
North
South 9

10. Field layout March 2015 Skrugard Havis Drivis FPSO North South ED EAEB EC DA DB YA YB
Havis
Drivis CB CC ZA CD
FPSO
North
South 10

11. Efficiency improvements on track
Realised USD 0.6 bn in efficiency improvements in 2014
Capex efficiency savings1)
Make targets stand out a bit more.
All number references in USD bn
Norwegian continental shelf field cost = installation subsea and topside operation and maintenance, logistics, catering, administration, HSE and reservoir management.
Capital market update

12. “Success is not final, failure is not fatal: it is the courage to continue that counts.”

13. Erik Strand Tellefsen | Statoil erte@statoil.com
Thank you!
Erik Strand Tellefsen | Statoil