The document discusses Statoil's approach to increasing oil recovery and developing fields by imagining what could be possible through innovative technologies and strategies. It provides four examples: 1) The Troll field in Norway, where developing multi-lateral and branched wells allowed recovery from a previously uneconomic thin oil zone. 2) The Johan Sverdrup field in Norway, a large discovery that will be developed using proven technologies over 50 years. 3) The Peregrino field in Brazil, where increased recovery of 10 times the initial value was achieved through horizontal wells, reservoir management, and heavy oil processing. 4) The Bay du Nord discovery in Canada, which could open a new

1. The Power of Possible
is an Attitude; It is in STO’s DNA

2. Passion -
Creativity -
Innovation -
Initiative -
Gary Hamel
Professor
Strategic Management
London Business School
Intellect -
Dedication -
Compliance -
The
Foundation
For Competing
The
Competitive
Edge

3. WHY NOT & WHAT IF?
Troll Johan Sverdrup Peregrino Bay Du Nord
Troll
• What if we could recover the thin oil zone with multi-
lateral wells?
Johan Sverdrup
• What if oil migrated into that huge flat trap?
Peregrino
• What if we could buy it all, increase the recovery/de-risk it and then
farm down?
Bay Du Nord
• Why not execute our ‘access at scale’ strategy in the Flemish, believe in
what we are doing and then de-risk the 3 best high-impact prospects?

4. Why not & What if?
Troll
What if we could
recover the thin oil zone
with multi-lateral wells?
Johan Sverdrup
What if oil migrated into
that huge flat trap?
Peregrino
What if we could buy it
all, increase the
recovery/de-risk it and
then farm down?
Bay Du Nord
Why not execute our
‘access at scale’
strategy in the Flemish,
believe in what we are
doing and then de-risk
the 3 best high-impact
prospects?

6. 40 years of experience offshore Norway
Hammerfest
Harstad
Bergen
Stavanger
Troll subsea
Stjørdal

7. Kollsnes
Troll A
Troll B
Troll C
35 years history and 50 to go
1979 Discovery well
1990 Long term oil production test
1991 TOGI - Gas export to Oseberg
1995 Troll B
1996 Troll A
1999 Troll C
2000 Troll Pilot
A
A
B
B
10 km 20 km

8. Troll Gas - A giant
• Tallest construction ever moved by man
− Height 472 m
− Weight > 1 million ton
− Power from shore
• Largest gas field in the North Sea
− ~40% of NCS gas reserves (50 Tcf)
− Gas to ~10 million European households
• Expected life time 2060+

9. Troll Oil - Impossible made possible
• None commercial oil field in 1980’s
− Vertical well technology
− Thin oil column (9 - 27 meter)
− Large area (770 km2)
• Largest oil producer on NCS 2013
− 120 subsea well slots
− 345 well branches (180 wells)
− 1 million meter reservoir drilled
− 2 100 million bbl reserve ambition

10. Technology driven reserve growth
1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
0,6
0,5
0,4
0,3
0,2
0,1
0
2500
2000
1500
1000
500
0
Recovery factor oil
Inflow
controlled
wells
Horizontal
wells from
floaters
Branched
wells
Ambition
4D
seismic
None
commercial
Branched wells Branch control RCP(AICD)
Produced
RF oil
Million
bbls

11. The challenge is becoming even harder….
• Wells located at OWC with thinner
oil zone and uneven OWC
• Reservoir length up to 15 000 m
per producer
• Valves along well path to choke
back gas and secure even inflow
• Controllable branches
Current phase (< 6 meter oil column)
13m
Initial phase
~2500 m> 6000 m
13m
GAS
OIL
WATER

12. … and we still work on future solutions
• More robust well concepts
− Fish bones, ditch wells, multi branched
• Dual gradient drilling
− Decreasing reservoir pressure - loss - drilling limitations
• Improved AICD technology
− Reduce inflow from water and gas producing intervals
• Improved logging tools to optimize well path
− Sand quality distribution in reservoir
− Distance to GOC

14. Johan Sverdrup
– the new giant at the Norwegian Shelf
• Among the largest oil discoveries at the NCS
• Resource estimate 1.8 – 2.9 billion boe
• At peak app. 25% of oil production at the NCS
• Plateau production of 550,000-650,000 boe/d
• 50 years of production
• Investment range USD 17 to 20 billion for phase 1

15. FLORØ
BERGEN
STAVANGER
Utsira High – where the story started

16. • Top quality permability
• Medium oil quality (28 API)
Johan Sverdrup
– excellent reservoir properties
16/2-6 16/3-2 projected (6km)16/2-8TWT
(ms)
• Flat and large
• Need for pressure support

17. Johan Sverdrup
– Modern field center by the largest offshore operator

18. Ambition of
70%
• Jackets
• Subsea templates
• Conventional oil processing
• Gas lift
Based on proven technology and
project execution experience
Flexible design and
options for the future
• Extended infill drilling
• Permanent reservoir monitoring
• Inflow control devices
• Improved production efficiency
• Look ahead / look around drilling
recovery rate

20. Peregrino oil field offshore Brazil
Peregrino
Peregrino

21. • More than 4 bill bbls of oil in place
• Heavy oil – 14 API; high viscosity
• Capacity of 100,000 bbl/d
• Over 63 million bbl produced since
April 2011
• Development Strategy:
• High reservoir exposure
• Flow assurance
• Continuous IOR EOR
• Marketing:
• Utilizing Statoil’s global marketing network
Peregrino oil field

22. Increased oil
recovery program
Discovery
well
10 x value realization
through technology
First oil April 2011
Making Peregrino Possible
• Changing from vertical to horizontal wells
• Reservoir Management allowing produce all water
offshore
• Heavy Oil processing competence from Grane field
securing flow assurance
1994 2000 2010 2020

23. 11
??????
Polymer
Other EOR
Infill drilling
Oil-leg injection
2012 2013 2014 2015 2020+
MLT wells
AICD first use
AICD full field
Broadband
seismic
Oil leg Injector
(pilot)
Extended Reach
Wells
Infill wells
Peregrino
Phase 1 at
project
sanction
Already implemented
Execution phase ongoing
Under evaluation
Long term potential
Peregrino IOR | Key Technologies
Ambition:
30% recovery
Implementation timeline

24. Longest Open Hole Gravel Pack in Brazil

25. Peregrino Future Development
• Peregrino Phase II, developing South and
South West areas
• Additional value creation
− Peregrino C tie back to existing FPSO
− Increased competence on multiphasing
transportation allowed us to save to cost of
an FPSO

27. Opening a new oil basin
• Leading basin position
• Bay du Nord – break through
oil discovery (300-600 mmbbl)
• Positioned for growth
• Assessing feasibility of
accelerated development
• Appraisal and exploration 2014+

28. The development of Flemish Pass
will require only proven technology

29. Ice management
and other
developments
will be done
in a safe and
responsible way

30. Stakeholder Engagement and Commitment

31. Erasing many more IMs in IMpossible;
A Key Part of Statoil’s Value Creation Vision
• 4 offshore examples of what IMagination +
execution can do
• Many IMs waiting to be erased onshore too;
Our NA shale assets are the highest
contributors regionally
• You are very IMportant to us; Thank you for
cooperation, help and your trust
• Now let’s celebrate!