1. TNO - AGE Regarding energy & subsurface matters Role of TNO’s AGE team: Support to MEA (Directorate Energy)

2. 13 March 2008TNO - AGE2 This presentation 1.What is AGE and what does it do? 2.Recently expressed priorities in the policy of the Dutch Ministry of Economic Affairs (MEA) 3.(example of one of our projects)

3. 13 March 2008TNO - AGE3 1.What is the “Adviesgroep EZ” (AGE)

4. 13 March 2008TNO - AGE4 A brief historical overview Once upon a time ……….. ……there was a Geological Survey of the Netherlands (Rijks Geologische Dienst, part of MEA) and it had a department advising MEA on E&P matters Until 1997 1997 : take-over of RGD by TNO

5. 13 March 2008TNO - AGE5 Position of TNO-NITG, 1997-2004 15 individual TNO institutes TNO-NITG (~350 staff) (in total some 4500 staff) DOC (engineering geology) (groundwater)(marine geology) (geo-information & systems) Geo-EnergyDeep Subsurface Confidential GE GWMK GS GI TNO-NITG consisted of 6 departments

6. 13 March 2008TNO - AGE6 Overall TNO reorganisation per January 2005 15 individual TNO institutes TNO-NITG “ex-TNO-NITG” 4 ‘Divisions Geo-Energy Geology (Quarternairy) DINO Groundwater & Soil NITG no longer exists!

7. 13 March 2008TNO - AGE7 Reorganisation per January 2006 5 “kerngebieden” TNO Bouw & Ondergrond) (Built environment & geosciences) TNO B&O contains 2 Geoscience business units Geo-Energy & Geo-Information Soil & Groundwater

8. 13 March 2008TNO - AGE8 TODAY : AGE’s position within the Business unit Geo-Energy & Geo-Information b.u. Soil & Groundwater b.u. Geo-energy & Geo-information (~150 staff) bu manager : Chris te Stroet 6 other business units Oscar AbbinkHenk PagnierBarthold SchrootMartin PeersmannRoel Verreussel DINOGeobiologyA G EOil & Gas Sustainable Geo-energy CONFIDENTIAL TNO Built Environment & Geosciences Extra Firewall etc. Location Utrecht

9. 13 March 2008TNO - AGE9 Advisory Group for MEA (AGE) ‘Special’ position within TNO (advise and information task) Ref. Article 123 of the Mining Act Mining Act states (Art. 123) that …. the Minister can appoint a body (institution) which manages the supplied data on behalf of the Minister and which advises the Minister on the basis of this data … Mbr 11.4.1 defines TNO, Utrecht for this role

10. 13 March 2008TNO - AGE10 Advisory Group for MEA (AGE) Works exclusively for the Ministry of Economic Affairs (but is not a government organisation itself) Main tasks twofold: Advise Ministry on E&P and the deep Dutch subsurface (all licensing matters, reserves estimates, risks, use of the deep subsurface etc.) Assist DINO dept. in maintaining / managing the Mining Act related database

11. 13 March 2008TNO - AGE11 How does these tasks relate to what other TNO teams in the b.u. do?

12. 13 March 2008TNO - AGE12 TODAY : AGE’s position within the Business unit Geo-Energy & Geo-Information b.u. Soil & Groundwater b.u. Geo-energy & Geo-information (~150 staff) bu manager : Chris te Stroet 6 other business units Oscar AbbinkHenk PagnierBarthold SchrootMartin PeersmannRoel Verreussel DINOGeobiologyA G EOil & Gas Sustainable Geo-energy CONFIDENTIAL TNO Built Environment & Geosciences Location Utrecht

13. 13 March 2008TNO - AGE13 The different ‘faces’ of TNO to the industry TNO-AGE Advice to MEA DINO Oil & Gas + Sustainable Submission of Mining Act related Data Release of Mining Act related Data Technical discussions w/r applications and production plans etc Internal Barrier in TNO Contract research, JIP projects etc

14. 13 March 2008TNO - AGE14 Advisory Group for MEA (AGE): Policy support to the Directorate Energy market of MEA TNO-AGE works exclusively for the MEA, on project basis Traditionally tasks in the Work package Policy support are: A) yearly report of reserves (inclusive prognoses), B) advise with regard to field monitoring, C) advise with regard to production related risk’s, D) communication & information on E&P matters (operators & other parties on various issues) E) advise MEA on license applications. QC E&P data in DINO database Regional mapping deep subsurface of the Netherlands Applied research- task information- task

15. 13 March 2008TNO - AGE15 2. Recently expressed priorities of MEA

16. 13 March 2008TNO - AGE16 Overall objective of MEA To maintain the level of exploration and production in next fifteen years.

17. 13 March 2008TNO - AGE17 Current priorities in MEA’s policies “Gaswinningsbrief” Minister Brinkhorst (Oct. 2004) stated that “to improve access to information” was a priority Letter of Minister van der Hoeven (11 Feb. 2008) to Parliament to report on the evaluation of the Mining Law after 5 year trends and implications emerging from the evaluation: 1.New entrants E&P 2.Underground storage of natural gas and/or CO 2 3.Geothermal energy

18. 13 March 2008TNO - AGE18 Current priorities in MEA’s policies (ref. letter of 11-2-2008) Evaluation of the Mining Law was in general positive, but some improvements are needed Objectives: 1.Maximize development small fields (also stimulate exploration) 2.Improve the Mining Climate Related Actions: Agreement (convenant) with the industry (which may include addressing fallow acreage) Make procedures w/r awarding of licences (and permits) more efficient Improve access to information (for new entrants) through the Dutch Oil & Gas portal, www.nlog.nl (immediate and important ROLE for TNO) www.nlog.nl

19. 13 March 2008TNO - AGE19 Current priorities in MEA’s policies (ref. letter of 11-2-2008) Other Actions: Revise Mining Law w/r to storage of CO 2 and natural gas Adjust Mining Law for the production of geothermal energy Identify & evaluate interference of activities on the North Sea (IDON) e.g. E&P  wind farms

20. 13 March 2008TNO - AGE20 Access to information: www.nlog.nl A new release of the Dutch Oil & Gas Portal was launched in December 2007 Improved functionality More data & information Well data Seismic data Field data Producing fields Stranded fields Petroleum Geology maps & models Licensing Petroleum Geological bibliography of the Netherlands

21. 13 March 2008TNO - AGE21 Dutch Oil and Gas Portal: WWW.NLOG.NL

22. 13 March 2008TNO - AGE22 Access to information: www.nlog.nl A new release of the Dutch Oil & Gas Portal was launched in December 2007 BUT : a lot more is still needed ! Bottleneck : capacity (incl. budget) to make changes (IT) to both www.nlog.nl and DINO modules behind itwww.nlog.nl

23. 13 March 2008TNO - AGE23 Has the policy been effective (2005 – 2007)? # of new entrants? How many licenses have they obtained? Their expected level of activity? Development of stranded fields Exploration wells

24. 13 March 2008TNO - AGE24 Change in licences November 2006 November 2007

25. 13 March 2008TNO - AGE25 New entrants taking stranded fields (2005-2007) About 10 new entrants have taken licenses (exploration or production) Now almost all stranded fields are in licensed areas Still some 90 stranded fields left with approximate 35 bcm reserves. Listing can be found on www.nlog.nl