Insisting that oil in the giant Troll field should be developed has created hundreds of billions of kroner in added value.
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Insisting that oil in the
giant Troll field should be
developed has created
hundreds of billions of
kroner in added value.
A special report tells the tale.
A J O U R N A L F R O M T H E N O R W E G I A N P E T R O L EU M D I R E CTO R AT E N O 2 - 2 012
2-2012 NORWEGIAN CONTINENTAL SHELF | 1
NORWEGIAN
Mid-life crisis? No way!
CONTINENTAL
SHELF Experience with the Norwegian model shows that dialogue
and objective arguments yield the best solutions overall.
“Life begins at 40,” they say – licences and companies, which best solutions overall.
A JOURNAL FROM THE either as a form of consolation or calls for a little flexibility and Since offshore operations
because a 40-year-old knows how patience. We’re still not satisfied. began on the NCS, legislation and
NORWEGIAN PETROLEUM to enjoy life. At the NPD, our aim Some jobs demand more pati- systems have also improved, so
DIRECTORATE is another four decades of profes- ence than others. A case in point that the companies themselves
NO 2 - 2012 sional strength and playing a key is Troll. This giant North Sea field must study all possible solutions
role. guarantees long-term gas sup- before plans for development and
12 Photo: Bjørn Rasen
When the Storting (parlia- plies to European customers, but operation are approved.
ment) voted to establish us 40 posed a problem in the form of a Almost 40 per cent of petro-
4 30 34 VOLUME 9 - 2 years ago, few people could have “thin” oil layer which few people leum production on the NCS in
RESPONSIBLE PUBLISHER predicted what followed – and felt was worth producing. 2030 is expected to derive from
Norwegian Petroleum Directorate how long Norway’s oil adventure That oil created controversy discoveries yet to be made. And
P O Box 600 would last. They’ve both almost and confrontation. Today, 30 how high will that output be 40
NO-4003 Stavanger certainly exceeded every expecta- years later, the companies and years from now? Norway will still
Norway tion. And it’s not over yet. Norwegian society are still reaping be producing from the North,
Telephone: +47 51 87 60 00 The latest White Paper on the the rewards of an oil deposit Norwegian and Barents Seas in
Telefax: +47 51 55 15 71 petroleum industry emphasised worth hundreds of billions of 2050.
E-mail: postboks@npd.no a long-term perspective. Its main kroner. We will continue to play an
points were an increased com- This issue recalls the history of important role, so that our expe-
EDITORIAL TEAM
mitment to recovery from produ- Troll and its oil to illustrate why all rience and knowledge can also
Bjørn Rasen, editor
cing fields, bringing discoveries opportunities must be thoroughly be applied to recovering these
CONTENTS Bente Bergøy Miljeteig, journalist
Eldbjørg Vaage Melberg,
on stream, exploration in familiar studied before development work resources to society’s benefit.
regions and making provision begins.
communications advisor
to open new areas. There’s a lot Another case of much-increased
Rolf E Gooderham - English editor
The interview: Taking the long view.............................. 4 to do, and we’ll have plenty of value creation is the decision to
PRODUCTION meaningful assignments to fill our inject water into the huge Ekofisk
Celebrating 40th anniversary............................................ 11 Arne Bjørøen - graphic production working days. reservoir further south on the
Printer: Gunnarshaug Trykkeri AS Together with the Petroleum NCS. That has turned Norway’s
On the spot: Challenging achievement........................ 12 Paper: Arctic Volume 200/130 g Safety Authority Norway – our first producing oil field into
Science studies: Classroom caverns.............................. 28 Print run Norwegian: 9 000 former safety division, hived off another adventure which will last
Print run English: 2 000 from us in 2004, and thereby an several more decades.
There and back again......................................................... 30 LAYOUT/DESIGN important part of our history – we And even more examples
work tirelessly to maximise the are to be found to show how
Rock shot: Getting down and dirty................................ 33 Art director Klas Jønsson
value of the resources on the NCS long-term thinking and planning
Going green............................................................................ 34 SUBSCRIPTIONS
norsksokkel@npd.no
in a safe and environmentally beyond the boundaries of a single
acceptable manner. field boost the returns for every-
Disappointed on land.......................................................... 38 Free of charge If we go back a decade, to our one involved.
30th anniversary, we were sharply Norway’s success as an oil
Shaken, but not stirred....................................................... 43 NORWEGIAN CONTINENTAL
SHELF critical of the oil companies for nation has not been achieved by
Trying it all together............................................................. 46 on the web: www.npd.no lacking a long-term view. Their the government compelling the
attention focused on short-term companies to adopt measures.
New way to get the facts................................................... 48 FOLLOW US ON TWITTER projects and quick returns. We Experience with the “Norwegian
www.twitter/oljedir saw insufficient willingness to col- model” shows that dialogue and Bente Nyland
FRONT COVER laborate across production objective arguments yield the director general
The NPD was created 40 years ago.
(Illustration: Emile Ashley)
2 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 3
THE INTERVIEW
NPD 40 YEARS
Taking the long view
NPD veteran Steinar Njå is convinced that the perspective
analyses are the most important documents the directorate
has ever produced. These looked 30 years ahead to provide
politicians and others with pointers to what might happen
on the NCS.
| Bjørn Rasen
Photos: Emile Ashley
4 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 5
production platform on Ekofisk.
A later assignment on the
same North Sea field was to check
I was called to an interview in Oslo during February 1973. reports of overflaring. Mr Njå
found that operator Phillips could
cut the amount flared by 25 per
cent with simple technical steps.
Finding ways to avoid unne-
cessary wastage of associated gas
Bjartmar Gjerde, the then petro- fields such as Kristin and Johan Sintef research institutes contri- through flaring was to develop
leum and energy minister, almost Sverdrup. [See the interview in buted to the work by developing into one of his core jobs at the
jumped out of his chair over the NCS 1-2012 at www.npd.no.] ever more advanced calculation NPD.
high resource estimates when he The Skånland commission on and analysis tools.
saw the first perspective analysis the pace of NCS development in But the oil companies were Role
in the autumn of 1981. the early 1980s was charged with generally reluctant to release Finding its own role in relation
Requirements for fabrication proposing measures to manage what they regarded as “commer- not only to the petroleum indus-
capacity and engineers were offshore operations which optimi- cial secrets” when the NPD asked try but also to other government
much higher than originally sed their social benefit. them for information. agencies was important for the
expected. But when the back- This body needed more than The exception was an Ameri- new directorate during its early
ground was explained to him, Mr geological reports, and requested can at Esso. During a visit to the years.
Gjerde grasped that he had acqui- a more overall assessment of the NPD, he was initially negative but The fire and lifeboat accident
red the management tool needed likely level of future activities on left behind a folder which on Ekofisk Alpha in 1975, when
to conduct an aggressive and the NCS. contained all the necessary data. several people died, and the
integrated national oil policy. According to Mr Njå, it was Ekofisk Bravo blowout in 1977
Mr Njå believes that the time common practice at the time to Science contributed to the shaping of the Perspective analyses were important for the NPD in the 1980s, and were
has now come to reveal that the leave the preparation of such After a childhood divided be- NPD’s early safety philosophy. carried out by multidisciplinary teams. The people behind the very first
NPD employed a little trickery in scenarios and development tra- tween farm work, schooling and These incidents laid a founda- analysis were (from left) Steinar Njå, Jan Riddervold, Odd-Erik Hansgaard,
order to get its the new analyses jectories to consultants. The result outdoor activities, Mr Njå studied tion for the idea that a regulator resource management director Farouk Al-Kasim, Steinar Marøy, Hans Christen
in front of the minister. was often reports which few sciences at high school in Bryne should not check everything the Rønnevik, Øystein Kristiansen and Per Tønnesen. (Photo: NPD archive)
The bureaucrats at the understood and even fewer learnt south of Stavanger. companies did, but rather approve
Ministry of Petroleum and Energy anything from. He wrote a project essay on the plans and safety systems they That provided the back-
(MPE) thought they had a good “Raised as I was on a farm, I oil refineries, having accidently created. Underestimated ground for establishing a new
enough overview, and were not knew that you learn best from the come across a brochure on the Many people participated in Mr Njå believes that the role play- programme for IOR and reservoir
enthusiastic about the NPD’s idea things you do yourself,” Mr Njå Esso facility at Slagentangen on the discussions and process of ed by many of his NPD colleagues technology in Norway, known
for perspective analyses. No need observes. “And I was not alone the Oslo Fjord. maturing which ended up in the in Norwegian oil history has been as Spor from the initials of its
to burden the minister with such- with that view in the NPD. So it was only natural that he Norwegian self-regulation prin- underestimated, and cites Sigurd Norwegian name.
like, they maintained “So we set to work on our majored in chemistry at Bergen ciple. Heiberg as an example. Mr Njå personally chaired the
So Farouk Al-Kasim, the NPD’s own account, using Mr Rønnevik’s technical college with subsequent This puts the onus on the He sounded the alarm about executive committee for this pro-
director of resource management, overviews. Tore Bjordal, Odd studies in chemical technology at companies to document their seabed subsidence on Ekofisk gramme, and the NPD received
proposed that the analysis be Raustein, Øystein Kristiansen and South Dakota School of Mines & health, safety and environmen- without winning much attention, NOK 100 million for five years to
submitted instead to the Ministry myself were largely responsible Technology in Rapid City, USA. tal performance, secure official and played a key role in getting establish and execute Spor.
of Local Government and Labour. for the first analyses.” His first job as a chemical approval and be responsible for the companies to adopt gas injec- Pursued in collaboration
When the MPE’s mandarins Updated information on finds, engineer was to be responsible meeting the standards set. tion for improving recovery. with Rogaland Research, Sintef,
heard that the other ministry was development solutions, steel for products on a ship manufac- ”Magne Ognedal became Together with Tor Lund, Mr the Continental Shelf Institute
interested, they gave way at once prices, water depths and wells turing herring oil off Africa’s west head of the production section of Heiberg also took the initiative (IKU) and the Institute for Energy
and awarded the NPD a hearing were used to outline what various coast. the control department in 1976,” on the Kalk project – the first Technology (IKU), work concen-
with the minister. decisions could mean in terms of After a brief interlude selling recalls Njå. “I feel he played the research programme where the trated on water and gas injection
Mr Gjerde understood the investment, output and jobs. valves to the oil industry, he saw main role in getting self-regulati- NPD and research institutes col- for IOR and on achieving better
value of the analyses, which These were key parameters that the recently created NPD on systematised and adopted.” laborated directly with the oil reservoir understanding.
became a fixed part of the NPD’s for the politicians, who wanted was advertising for people in late The Alexander L Kielland disas- companies. Results from some of its stu-
annual routine and were much the biggest possible value crea- 1972. ter in 1980, when 123 people died The goal was to improve reco- dies were applied on the Ekofisk
used when its staff spoke at the tion on the NCS while ensuring “I was called to an interview in because this flotel capsized, pro- very from chalk reservoirs on the field as the basis for the major
opening or conclusion of various that activity was not high enough Oslo the following February and ved the great milestone in safety Danish continental shelf and from waterflooding project pursued
conferences. to damage the mainland econo- met Dag Meyer-Hansen. When work on the NCS. the Ekofisk and Valhall fields on there.
my. we went out for a beer together During the Bravo blowout, Mr the NCS. The Spor programme was
Systematise A general feature was that afterwards, I understood that the Njå was one of the first to arrive “We also had a good collab- ably headed by Anna Inger Eide
The early beginnings of the both activity and production turned job was mine. at the Tanager operations centre oration with the British, not least from the NPD, Mr Njå says, and
perspective analyses go back to out to be much higher than Mr Njå “That’s because Dag asked outside Stavanger. He was fol- where reporting was concerned,” its findings eventually attracted
1978-79, when work began to and his colleagues estimated in me to pay for the drinks. He’d for- lowed by government ministers says Mr Njå. “They’d developed international attention.
coordinate and systematise seis- their analyses. Yet the politicians gotten his wallet, and said he’d and the world’s press. their own production reporting
mic data from various parts of the often claimed that the estimates pay me back when we met again “Most people presented this system (PPRS), which we were Recovery
NCS in order to produce updated must be too high. in Stavanger.” incident as a great environmental allowed to copy. The NPD made it clear at an early
reports of the overall potential. “In our initial analyses, Mr Njå joined the NPD on 25 disaster,” he notes. “It was a little “Later, we were invited to par- stage that recovery from the huge
That work was initiated by however, we also predicted that May 1973 as employee number odd to discover afterwards that ticipate in an improved oil reco- Ekofisk area should be substanti-
Hans Christen Rønnevik, an NPD investment on the NCS would 27. After a trip to Malta to learn most of the oil evaporated and very (IOR) programme they’d set ally higher than the first estimates
geologist who has gone on to have ceased by 1998-99,” Mr Njå about the oil business, his first job that the blowout in practice cau- up for their own oil fields, since of 17-19 per cent of the oil origi-
become well known as an explo- also recalls. on the NCS was to check mete- sed no demonstrable negative we were running a similar project nally in place.
ration manager with a key role in The Christian Michelsen and ring systems aboard the Gulftide effects of any significance.” in Norway.” Everyone agreed that pressure
6 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 7
As everyone knows, the outcome of this waterflooding
proved surprisingly good.
support was the answer, but dis- and other agencies all now bene- This marked the start of a
agreement prevailed initially on fit from this database, which is long and interesting period when
whether this should be provided also used as a model by a growing Mr Njå worked on improving
by natural gas, nitrogen or air. number of oil producers when Russia’s resource management
Water was out of the question creating such facilities. system, particularly within orga-
at first because experience from “I’ve personally followed this nisation and economic assess-
the nearby Valhall field showed work closely in Nigeria, and know ments.
that it converted this chalk reser- what a high priority is assigned to He maintains that the NPD
voir into an impermeable, tooth- it,” observes Mr Njå. represented a good model for
paste-like substance. the new and modern petro-
When it became clear that Flaring leum administration required by
Valhall and Ekofisk chalk have dif- He has worked a great deal on Norway’s giant neighbour to the
fering porosities, however, Phillips IOR and flaring, both nationally east.
tested water injection in the USA and internationally. The NPD has Frequent visits mean that he
and found it appeared to have a been very restrictive from a early is now very familiar with both
good effect. stage in permitting gas to be fla- federal and regional governments
Despite these encouraging red on the NCS. in Russia. His travels have covered
results, the company was not When Statfjord was due to most of its regions.
immediately ready to take the come on stream in November “Getting to know the Russians
risk of full-scale water injection 1979, the equipment for injecting better was incredibly interesting,”
when it was not certain about the gas had not been installed. he reports. “Like most other Nor-
outcome. Operator Mobil applied for a per- wegians, I imagined that they had
Phillips wanted compensa- mit to flare the gas until injection their own – and different – ways
tion for the risk, and the NPD was could begin. of thinking.
asked to assess the economics The outcome was that the “That’s just nonsense.
of the project. The outcome was flaring was permitted, but only Russians are even greater indivi-
that the licensees were given on condition that oil production dualists than us Norwegians. If
more favourable depreciation was halved to restrict the amount any general differences exist, they
rules. burnt off. derive from the Soviet era.
While that allowed water That represented a drama- “That was a time when most
injection to be realised, the tic cut in cash flow. Mobil then people largely did only what they
Ekofisk partners had to accept managed to find the necessary were told. Such passivity gave a
that state-owned Statoil acquired injection gear in the USA and hur- few active leaders pretty well free
a small stake in the licence and riedly air-freighted it to Norway. hands.”
took its share of the risk. As compensation for this dras- Fortunately, the trend today
“As everyone knows, the tic and expensive operation, the is that the decentralised specialist
outcome of this waterflooding licensees were allowed to write teams in Russia’s oil and gas
proved surprisingly good,” says down the additional costs in the sector no longer hold back, but
Mr Njå. “Although the companies same year the equipment became contribute their experience to
sang to some extent from the operational – a solution both Moscow.
same hymn sheet, I’d argue that sides regarded as a win-win. “That’s where the decisions
water injection would never have are taken. So we see that our
happened without our purposeful Russia contribution is worthwhile, which
commitment to IOR virtually from Mr Njå was contacted in 1993 by makes our work in Russia particu-
the word go.” Øystein Berg, head of the Petrad larly meaningful,” says Mr Njå.
Another colleague he wants development assistance agency, In his view, the Norwegians
to praise is Kjell Reidar Knutsen. which had been charged with have things to learn from Russia
“The work he and his colleagues helping Russia to enter the about the theoretical approach
have done over the years to modern oil world. to oil and gas – particularly when
streamline reporting from the The Soviet Union had been learning what is happening in the
companies, define concepts, dissolved two years earlier, and reservoirs.
systematise the information and the Russians now had to learn
use it to build up our database is western ways of doing things – in Nigeria
greatly undervalued.” part with aid from foreign inves- He has also devoted a lot of
The MPE, Statistics Norway tors. time to putting in place a better
Steinar Njå is proud of working for society as a whole. He has been with the NPD for 39 of the directorate’s 40 years.
8 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 9
Sometimes, however, I feel we should ask ourselves
whether we are being too friendly.
Celebrating 40th anniversary
The NPD was created on 14 June 1972 by a vote in the Storting (parliament).
It has had three directors general since its foundation – starting with
Exxon, Eni, Total and Statoil are After the split, of course, we’ve geologist Fredrik Hagemann. He was succeeded by ex-politician Gunnar Berge
also contributing expertise, while learnt to live with the reality before another geologist, Bente Nyland, took over.
the NPD is drawn in as required to without weakening either resource
assist government agencies in the management or safety super-
other countries. vision.”
The work also benefits from In his view, the NPD took a
AV ARNT EVEN BØE OLJEDIREKTØRENE
the support of the Sustainable tougher line with the compa-
Energy for All venture initiated nies in many cases after its initial
by UN secretary-general Ban apprenticeship. But he also sees
Ki-moon. that the trend has been towards OD revolusjonerte sikkerheten
FREDRIK HAGEMANN MENER DIREKTORATET
This aims to introduce energy- more detailed development BLIR OVERSETT I OLJEHISTORIEN
saving programmes in poor coun- plans, agreements and regula-
tries and to build infrastructure tions.
-Det som er litt leit, sier Fredrik Hagemann og bruker et sekund eller to for å
and transmission lines in areas All the parties must relate formulere budskapet han nå skal framføre. Oljedirektoratets sjef gjennom de
Lessons. Steinar Njå has witnessed great without an electricity supply. professionally to these. “It’s clear han nå skal oppsummere sin tid i OD og fortelle om noe som er ”litt leit”, er det
første 24 årene bruker aldri sterke ord eller dramatiske virkemidler. Men når
AV ARNT EVEN BØE OLJEDIREKTØRENE
international interest in the Norwegian model. “The more I travel around that the traditional approach, all mulig grunn til å lytte. Krassere enn det kommer han neppe til å bli sitert.
the world, the more I understand which prefers collaboration with -Det som er litt leit, synes jeg, er at Oljedi-
rektoratets mange positive bidrag ikke blir standbyskip og –helikoptere, medvirket til
som han kan høres ut, så langt. Han ler mye
og skyter stadig inn anekdoter og historier
regime for oil administration in the importance of international the companies to confrontation,
nevnt når oljehistorien skrives og fortelles.
Typisk i så måte var den ellers så utmerk-
ede serien om norsk oljehistorie som gikk
kvantesprang på sikkerhetsområdet.
FØRST UTE
”som ikke egner seg på trykk”. Som i oljås
Nigeria, where corruption is one collaboration on climate and envi- yields rich rewards.
på NRK. Der var det mye interessant, ikke
minst om Statoil, men ikke ett ord om Olje-
direktoratet som jeg vil påstå spilte en minst nivået også der betraktelig. OD og norsk
mot de seismiske undersøkelsene som de
jo helt rett i, medgir Hagemann i dag. –Vi
of the biggest challenges. ronmental measures in the petro- “Sometimes, however, I feel
like viktig rolle i disse første årene,
sier Hagemann.
Selvfølgelig ble det i serien fokusert på
sokkel var også historisk tidlig ute med det
såkalte egenkontroll-prinsippet. Det går ut
på at myndighetene ikke kan eller skal kon-
brukte jo dynamitt. Men det hjalp godt da vi
startet med opprydding på havbunnen fordi
trålerne klagde på at oljeskrot ødela for dem.
Former Norwegian premier leum sector,” says Mr Njå. we should ask ourselves whether
ulykkene og de negative sidene ved ”oljå”,
skulle bare mangle. ”Alexander Kielland”-
havariet i 1980, da 123 mennesker mistet
trollere skruer eller muttere, men overlate
til operatørselskapene å dokumentere at sik-
kerhetsoppleggene og -rutinene er i samsvar
Mesteparten av det vi fant viste seg å være
vi tilbød dem å kjøpe tilbake utstyret for en
Kjell Magne Bondevik took advan- “To quote my colleague Else we are being too friendly,
med våre krav. Dette prinsippet var OD først billig penge. Det gjorde de med stor glede,
Lofot
med i Norge, og nå brer det seg over kloden. siden de allerede hadde fått erstatning for
tragiske hendelser som aldri vil eller skal gå i At dette ikke er interessant når historien skal utstyret.
tage of Nigeria’s democratisation Ormaasen: ‘collaboration with whether the demands we make
glemmeboken. Begge bidro til økt forståelse
for at sikkerheten må gå foran alt, i vissheten
fortelles, er litt leit, synes jeg.
Fortsatt uten å slå i bordet forteller ANSATT NUMMER 3
bli e
om at selv det utenkelige kan skje. Men Hagemann oppgitt om alle dem som er opp- Da Fredrik Hagemann ble utnevnt til Olje-
process around 1999-2000 to other countries is part of our are tough enough.
Fredrik Hagemann ønsker en mer balansert
framstilling av historien.
-Faktum er at oljebransjen, med Olje-
tatt av å problematisere og mistenkeliggjøre
oljenæringen. For eksempel da han en gang,
som redaksjonell konsulent for et bokverk
direktoratets første sjef i 1972, kom han fra
Industridepartementets Oljekontor, arne-
launch an oil-related collabora- international responsibility’.” “I can’t point to any specific
direktoratet i spissen, har revolusjonert sik-
men for alle som ferdes på havet. Før platt-
om oljevirksomheten, ble forelagt en teori
som gikk ut på at oljeselskapene med over-
legg startet med å bore 33 tørre brønner
lige oljepionerer. Stavanger kjente han godt
etter oppveksten som sønn av kommune-
legen på Jørpeland. Heller ikke de to som
GUNNAR BER
MOT OLJEB
tion between the two countries. recent examples, but believe on mye farligere arbeidsplass enn nå. Det beste
på norsk sokkel: De ville presse fram bedre
rammebetingelser for fortsettelsen. Litt leit,
det og.
var ansatte før ham, var ukjente. Sekretær
Brynhild Meltveit kom også fra Jørpeland.
Selv om hun lå i barnevogn da Fredrik dro
The Nigerian government is Changed a general basis that it can be con-
Fredrik Hagemann er ikke så alvorlig til Stavanger for å ta artium på Kongsgaard,
interested in collaborating with When Mr Njå looks back on structive to ask such questions
Norway in order to draw on its almost 40 years with the NPD, he from time to time.” 18 OLJEDIREKTORATET4OÅR
- Når jeg ser tilbake p
vi vært enda flinker
experience of both resource observes that much has changed Now 68, Mr Njå envisages
Skulle disse områden
aktiviteten i Norskeh
management and safety super- since the early years. another year with the NPD before Fredrik Hagemann svært uheldig
vision. “We used to take the initiative retiring. He never moved over to Gunnar Berge tenker tilbake til valg
Natural gas corresponding
1997 da Hydro forberedte den første
and get things going ourselves a the industry because the directo- i Nordland VI. Området var åpnet o
tildelt. Hydros brønn skulle bli den
to twice Norway’s exports of this lot more. Former director general rate always offered him very inter- AV ARNT EVEN BØE OLJEDIREKTØRENE
men plutselig gikk alarmen. Oljebor
utenfor Lofoten ble framstilt som ha
miljøprotestene ble så høylytte at po
commodity is flared worldwide Fredrik Hagemann was good at esting assignments.
fryktet de skulle influere valget. Som
i Oljedirektoratet var Gunnar Berge
every year. This wasted resource
dem som snakket med Hydro og fik
supporting such moves. “No other employer could
-Det var jeg som
skapet til å avlyse den omstridte bor
-Bore-retretten la seg etter hver
could be worth NOK 150 billion. “This ‘entrepreneurial spirit’ have offered such projects. This
skjebnesvanger klam hånd over akti
planene i området. Til slutt ble Nord
skulle slukke lyset
stengt for oljeleting. Hendelsen var
Nigeria and Russia account obviously reflected the fact that has never been about money for
til dagens debatt om ja eller nei til o
utenfor Lofoten og Vesterålen. For m
for the biggest volumes, and also we were sailing unfamiliar seas. me, but about the professional
dette en underlig problemstilling ett
enn 40 års læretid lenger sør og nor
have the greatest potential both Now and then, I miss that sense of perspectives, the opportunity to
SOM NYANSATT OLJEDIREKTØR FOR FIRE ÅR SIDEN HADDE BENTE
NYLAND ENKELTE GANGER FØLELSEN AV Å VÆRE DEN SISTE I REKKEN. Gunnar Berge er en friluftsmann som trives like godt med ski som med joggesko på beina. Her er han på søndagstur på Tungenes nord for Stavanger.
for making better alternative use get-up-and-go where we challen- work on the overall picture. BRANSJEN VAR FOR NEDADGÅENDE, OG PESSIMISMEN RÅDET. Foto : Emile Ashley
of the gas flared and for pursuing Gunnar Berge 12
ged the MPE more.” “I’ve also appreciated all the
OLJEDIREKTORATET4OÅR
IOR. He has also seen the NPD’s good colleagues and collabo-
According to Mr Njå, Nor- role change over the years. ration internally. But the most - Nå opplever vi en enorm optimisme der alle vil være med og lete. Selskap som har
wegian experience from its own Responsibility for the environ- powerful driving force has been forlatt norsk sokkel kommer tilbake, og de som ikke gjør funn, satser friskt videre.
Utviklingen er selvfølgelig gledelig, men sier også sitt om en bransje der
continental shelf could be of very ment now lies largely with the the knowledge that I’m working selskapene har lett for å springe etter hverandre.
great importance in these areas. Norwegian Climate and Pollution for society. Oljedirektøren synes det er enkelt å
forholde seg til olje- og energiministeren:
handlemåte. Jeg har merket meg at denne
meldingen i tillegg til økt utvinning også ganger. Når det ender med funn, er det en ny
Norway participates in the Agency (Klif) and for safety with “If I do a good job, the results
-Ola Borten Moe er en tydelig olje- og
energiminister. De signalene han sender,
betoner tilrettelegging av nye områder
sterkere enn i tidligere, sier Nyland som erte områder fungerer etter forutsetningene.
work of the global gas flaring
representerer Regjeringens forventinger til minner om at dypt vann i Norskehavet var Det betyr at vi ikke kan utelukke liknende
the Petroleum Safety Authority aren’t confined to increased pro- industrien som dermed vet hva den skal
forholde seg til. Og det gleder meg at han
det siste nye området som ble åpnet for let-
ing. Det var i 1994. Samtidig ble Nordland
hendelser på andre deler av sokkelen.
-Mange peker på det rekordhøye invester-
reduction (GGFR) initiative by the Norway (PSA). fits for my employer. The value I
er så opptatt av økt utvinning. Slik framstår
statsråden som en av de beste pådriverne
vi har når det gjelder å få mest mulig ut av
VI åpnet for leting og blokker tildelt. Men
området ble som kjent stengt igjen – og er
det fortsatt. Det som skjedde på Nordland VI
ingsnivået i ”oljå” og frykter overoppheting.
Er tiden inne til å sette bremsene på?
-Diskusjonen om styring av aktiviteten
World Bank to create a programme “Personally, I feel that sepa- help to create benefits the whole
de gamle oljefeltene, sier oljedirektør Bente
Nyland.
er en påminnelse om hvor vanskelig det kan
være å følge opp politiske beslutninger i det
virkelige liv, sier hun.
og køordninger for utbygginger er ikke ny.
De forsøkene som er gjort på å bremse, har
ikke virket etter hensikten. En kan kanskje
in each country.
Hun mener Sp-statsråden langt klarere
rating out the PSA to create an nation. seg som en minister for petroleumssekt-
-Har de nye store funnene, som Johan
Sverdrup, endret det norske oljeperspektivet? det samme samtidig. Akkurat nå er aktivi-
These are then followed up
oren. Han formilder innholdet i Petroleums- teten svært høy på grunn av høye oljepriser.
independent agency is the move “Internationally, my collea- -Meldingen viser at Regjeringen vil noe med
sialet for uoppdagede ressurser i Nordsjøen
og er den viktigste årsaken til at vi trolig
Et raskt og dramatisk fall i oljeprisen kan fort
endre på det. Da kan de negative konsekven-
with knowledge transfer and ana- which has weakened the NPD gues and I find that a growing
næringen, setter framtidsperspektiver og
beskriver hvorledes nasjonen skal nå målene,
sier oljedirektøren og oppsummerer bud-
kommer til å oppjusterer estimatet vårt for
uoppdagede ressurser i Nordsjøen. Funnet
sene forsterkes av iverksatte bremsetiltak.
Det er ikke mer enn 10 år siden vi alle var
bekymret for sterkt fallende aktivitet på sok-
lyses between the participants, most,” Mr Njå observes. number of oil-producing coun- • Sterkere satsing på økt utvinning.
aldri skal si aldri. Vi har visst om at det var et
prospekt der lenge, men det ble vurdert til å
kelen. Etter mitt syn er det feil signal å endre
rammebetingelsene i perioder med høyt
who include the USA, Canada,
• Flest mulig nye funn i produksjon. ha lav funnsannsynlighet fordi vi ikke kunne aktivitetsnivå. Men det er viktig å følge med
“As a single agency, we made tries want to copy the NPD. That’s • Intensivert leting i eksisterende
områder for å ta hånd om tidskritiske
skjønne hvordan olje skulle kunne migrere
inn i området. Når det til sist ble gjort et så
på at vedtatte planer blir fulgt og at budsjet-
Nigeria, Iraq, Indonesia and better use of human resources the best evidence of our success.” •
ressurser.
Tilrettelegging for åpning av nye
områder for oljeleting.
stort funn, skyldes det både nye brønner
og ny seismikk som avslørte at oljen hadde
klarer å holde den forventede kvaliteten,
og at oljeselskapene sikrer seg tilstrekkelig
kompetanse.
Mexico as well as Norway. and stood stronger externally.
–For Oljedirektoratet som etat er det
viktig å sikre at Petroleumsmeldingens regelen.
OD legger seg ikke oppi selskapenes
optimisme eller pessimisme, men direktora-
Oil companies Chevron, Shell,
ambisjoner gjennomsyrer vårt budskap og -Jeg vil minne om at den aktuelle blok- tet er svært nøye når det vurderer realismen
Bente Nyland har i jubileumsåret 2012 styrt Oljedirektoratet i fem år. Foto: Emile Ashley
4 5
Bente Nyland
OLJEDIREKTORATET4OÅR OLJEDIREKTORATET4OÅR
10 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 11
ON THE SPOT
NPD 40 YEARS
Challenging
The oil reserves in Troll have
turned this huge gas field in the
North Sea into the giant of the
NCS, bigger than next largest Achievement
discoveries – Ekofisk and Statfjord
– put together.
achievement
Its story began in August This ranks as one of the agency’s
1979, when Borgny Dolphin drilled biggest achievements in its
into a geological formation long 40-year history, accomplished
known to the geologists as a big at a time when all attention was
“flat spot” which might contain focused on the field’s gas resources.
much oil, gas or both. Troll was discovered during
Although this structure was the Cold War in a Europe hungry
by no means unknown, most oil for more “friendly” energy sources.
companies found a water depth The prospect of Russian gas
of 300-350 metres offputting at exports expanding created great
the time. Not so Shell. concern in the West.
Producing the oil in Troll is one The latter became operator This was nowhere greater than
in the USA, and president Ronald
of block 31/2, with 35 per cent, in
of the greatest technological, Norway’s fourth licensing round Reagan strove to ensure that Troll
in 1978. Statoil had 50 per cent, came on stream as fast as possible
resource management and while Conoco, Superior Oil and to reduce European dependence
value creation successes on Norsk Hydro got five per cent on Communist energy.
But Reagan’s urgent prompt-
each.
the NCS. The NPD played This bold commitment reaped ings fell on deaf ears in a Nor-
a quick reward, and the NPD wegian government which
and continues to play issued a press release as early as quickly grasped that it would take
a crucial role in this saga. 5 September that year which con- much time and effort to plan the
development of this huge discovery.
firmed the discovery of “a gas field
with substantial reserves”. Shell, which had initially
| Arnt Even Bøe All the signs were that the dubbed the find Kamskjell
Illustrations: Klas Jønsson discovery also extended into the (Scallop), submitted the first plans
neighbouring 31/3, 31/5 and 31/6 in the early 1980s for bringing it
blocks “with considerable resources on stream as quickly as possible.
there as well”. These proposals paid scant
The partnership could event- regard to the oil, which was con-
ually report that it had made sidered unprofitable to produce
“a world-class gas discovery”, – mainly because the strata in
perhaps 10 times larger than the which it lay were so thin.
According to the licensees,
new drilling technology would
have to be developed to recover
any substantial volume of this
crude. And they had no time to
wait for that to happen if the gas
now-depleted Frigg field in the was to be speedily positioned in
North Sea. the market.
Few people, if any, reckoned The NPD saw that Troll’s size
at the time that the thin, virtually meant it could serve as a guaran-
inaccessible oil layers beneath the tor which would allow associated
gas would also make Troll one of gas in other oil fields and smaller
the North Sea’s biggest oil fields. Norwegian gas discoveries to be
But that has been the out- developed.
come of tough negotiations both But the agency was much
inside and outside the licence readier to adopt a waiting atti-
group. A stubborn NPD secured tude on the Troll oil than Shell
Norway huge revenues from Troll and the other partners because
oil. the extent of the reservoir meant
the resources could be substantial.
12 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 13
Without the NPD’s demand for unitisation, Shell would have
started production on its own terms and the crude would have
been lost for ever. (Ole Svein Krakstad)
Team calculating pressure loss in pipe-
lines.
Norwegian government to give
preference to the three domestic
Robertson Research in the UK oil companies created during
investigated the geological con- Norway’s short career as an oil
The upshot was that the oil zones
ditions, while assessments were nation.
had to be mapped. This prompted
made of various development So nobody was surprised
the NPD to take the innovative
concepts. when the Labour government
step of establishing a special
It was important to avoid proposed awarding the three
cross-disciplinary team in 1981-82
the fate of Frigg, the biggest neighbouring blocks on the same
to monitor Troll.
Norwegian gas find before Troll, pattern adopted for the Gullfaks
Farouk Al-Kasim, the direc-
which had also contained oil in field.
tor of resource management,
even thicker layers than in parts This meant that wholly state-
appointed principal engineer Ole
of the new discovery. owned Statoil received 85 per
Svein Krakstad to lead this body
Measuring seven to 10 metres cent and the operatorship, part
and report directly to him.
in height, these strata made Frigg state-owned Hydro nine per
Mr Krakstad was given a free
a substantial oil field. But the cent and privately owned Saga
hand to recruit the specialists he
technology to recover this crude Petroleum six per cent.
thought best suited to serve on
was not available when it came Labour had originally wanted
the team. They were intended to
on stream in 1977. to give Statoil 100 per cent after
cover the whole value chain from
It would have been neces- Arve Johnsen, the company’s
geophysics to economics.
sary to drill several hundred chief executive, pointed out
A reservoir engineer himself,
production wells to get out these Troll’s strategic importance for
Mr Krakstad began in the autumn
resources, which were lost once Norwegian gas sales.
of 1981 to simulate the behav-
gas production reduced reservoir But the party appreciated that
iour of the Troll formation – first
pressure. this would be politically impossi-
vertically, then horizontally – as
The job for the NPD’s team ble, and the Conservative govern-
revealed by drilling.
was to identify the opportunities ment which took over after the
More people became involved
– both existing or potential – for 1981 general election withdrew
during 1982, and the whole was low, Shell declared “its” Troll the agency and the companies view that the reservoir formations
recovering the Troll oil, which ran its predecessor’s proposals.
operation moved at the end of block to be commercial on 15 related in virtually every case to in east and west were probably in
to several billion barrels. Statoil feared that its opera-
the year into a former carpet shop November 1983 and continued to the development of the “Shell” communication.
From day one, the agency’s tor position would be weakened,
on the ground floor of the NPD’s press for gas production to begin block on the western side of the The MPE followed the discuss-
oil ambitions ran into opposition and launched a vigorous lob-
then offices in Stavanger. as soon as possible. field. ions closely, and eventually pro-
from the licensees. They regarded bying campaign. In 1982, the
Team members in this early That contained a third of the vided NOK 5 million in extra funds
the crude at best as a pure by- Conservatives approved the divi-
phase included geophysicist Svein gas and virtually all the recover- for reservoir studies.
product which could delay gas sion of interests but decided that
Johnsen, assistant geophysicist
Jan Allen Eide, and geologists
sales. Hydro would also have an opera- Sources able oil. The NPD’s dilemma was Intended to document that
The companies took the view tor responsibility. that the more gas output it per- gas output on the western flank
Magne Edvardsen, Øyvind Lønne mitted in this area, the harder oil would hit oil production, this
that early gas production was no The failure of the minority
and Kjetil Tonstad. Five people have been the princi- extraction would become. appropriation was spent on exter-
problem, and wanted the NPD to government to give a better deal
Torfinn Karlsen and Terje Åsen pal sources for this presentation A test well in the thin oil zone nal studies focused primarily on
document its claim that such out- to Saga aroused the ire of the
were the experts on reservoir of the NPD’s role in the story of during 1980 confirmed that it was reservoir simulation.
put would damage the prospects other non-socialist parties in the
technology, Tore Bjordal special- Troll oil, including Mr Krakstad. possible to recover these resourc- The NPD contributed its own
for oil recovery. Storting (parliament).
ised in field development, and He was closely involved until his es, and optimism was boosted by personnel and funds to the work,
After much political in-fight-
Billy Bærning and Olav Fjellså departure in 1985. a second test well in the thicker and its Troll team expanded to 12
ing, Saga also secured an opera-
dealt with the economics.
The team received help from
Allocated tor role. The award of the three Mr Bjordal then took over and layers the following year. members. This expenditure indi-
additional Troll blocks was unani- led the team until 2003. Joining in Despite these results, Shell cates how seriously the govern-
a number of NPD specialists. Hans 2000, Leif Hinderaker eventually remained eager to start produc- ment regarded the issue.
mously approved by the Storting’s
Christian Rønnevik and Sigurd became its coordinator. That job is ing the gas. It eventually moved
Troll’s gas resources extended industry committee in 1983.
Heiberg, for instance, supported held today by Torgunn Kvervavik close to the NPD’s position by say-
far into the neighbouring blocks Shell had submitted an early
early geological interpretation
and reservoir work respectively.
to the east, which had not been application for the three unallo- Sheridan. ing it could produce oil and gas Status
allocated. That prompted great cated blocks, but failed even to Finally, Tomas Mørch became simultaneously from a platform
External studies were also the NPD’s area director for the in the west, but crude could only
interest among most of the oil receive an acknowledgement
conducted by Rogaland Research northern North Sea – including come from the thickest zones. All four operators – Shell, Statoil,
companies. from the Ministry of Petroleum
and Franlab in France on reservoir Troll – in 2010. That was not good enough Hydro and Saga – were asked by
At that time, it was still and Energy (MPE).
simulation and by the latter on The confrontations between for the Troll team, which took the the NPD in June 1984 to provide a
both legal and normal for the While stressing that the return
14 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 15
status report and to outline their such a project. put at 45 degrees – at 60 degrees,
future plans for the oil in both The state company main- the whole well would collapse The oil industry has repeatedly demonstrated that it isn’t
thick and thin layers.
Shell responded that produc-
tained a low profile in the part-
nership, despite its cautious opti-
when the bit was withdrawn.
Mr Bjordal could then point
the most scientific in history. (Tore Bjordal)
ing the oil in the thin strata would mism. According to one source, it to a classic drilling case – a well
be unprofitable, and valued the had to be loyal to the rest of the driven vertically from an artificial
resources in the thicker zones at
little better than zero.
group – and silently shared its
view – while expressing under-
island in the USA, which ended up
in unconsolidated sand on land Basis unproduced when the licences
expired, and also aimed to reduce
taken in the oil province. This held
relatively little gas, and its crude
Indeed, it maintained that gas standing for the government’s instead of the reservoir. their impatience over the oil. was in columns 22-27 metres
production itself would only just requirements. He could also utilise his Many problems were solved thick.
be commercial and stuck to its Although none of the four knowledge of rock mechanics to The question was where the NPD
by unitising the field, but others Oil in place in Troll West
plans for such output from the were directly hungry for the oil, show that horizontal drilling did could find a basis for achieving
were created because the discov- totalled more than 3.6 billion bar-
western block. the conclusion was that Statoil not cause critical stresses in the this ambition at a time when
ery actually comprised two sec- rels (570 million cubic metres) – a
The oil in this part of the field and Hydro were the relevant reservoir. Norway’s Petroleum Activities Act
tions – Troll West and Troll East. formidable volume which the NPD
was seen as merely a by-product operator candidates for an oil Backed by scientific studies had yet to be passed.
Both had underlying oil, but was unwilling to write off without
which could be recovered with development on Troll. from mining specialists in Krakstad found the answer
everyone agreed that the zones a fight.
the aid of a few vertical wells – An NPD review of the docu- Trondheim, too, Mr Heiberg in the provisional regulations for
in the east were too thin. No pur- How much of this was recover-
even though it not would be prof- mentation used by the four found demonstrated that careful drilling acceptable exploitation of petro-
pose would be served trying to able, and at what cost, remained
itable. they had assumed a very low oil in unconsolidated sand did not leum resources. Section 1 stated
recover crude from columns no the key questions.
However, the Troll team con- output. Unlike the Troll team, they necessarily lead to collapse. clearly that the government could
thicker than four metres.
cluded that Shell’s strategy for had no faith in horizontal drilling The argument about unprof- demand unitisation of fields
A very different position pre-
getting on stream had failed to as a solution. itability was countered with across several blocks if the aquifer
was in communication.
vailed in Troll West. This part of the Horizontal
give adequate weight to the value The companies noted that simulation results obtained by field was again split into two – the
of the oil. developing the necessary tech- Mr Krakstad via Franlab, which Such contact would mean that
gas province and the oil province.
According to the NPD, the nology would demand both time showed that horizontal wells production in one place might
The first of these contained a Only one solution was available
company’s refusal to consider and resources, which could delay could increase output more than have consequences in another,
third of all the gas as well as quite for producing Troll oil, the NPD
horizontal drilling meant that 700 gas sales and weaken their fight fivefold. and provided the legal foundation
a lot of oil. This lay in thicker layers believed – long horizontal wells.
wells would be required to do for a share of a seller’s market. In retrospect, Mr Bjordal for the NPD to act.
than to the east, but these were But the companies continued to
justice to the oil by conventional High risk was another problem. observes: “The oil industry has This was enshrined in an
still no more than 13-14 metres deny that the technology was suf-
criteria. repeatedly demonstrated that it almost historic letter sent to the
high. ficiently mature.
This was naturally out of the isn’t the most scientific in history”. operators on 9 February 1984,
At the same time, the crude Among other moves, the NPD
question. The best management Drain The NPD also viewed with which ordered them to unitise the
four blocks.
zones in the gas province were pressed Hydro in December 1987
of the field’s resources could only growing concern what it regarded much more extensive than in the to drill two virtually horizontal
be achieved by treating both as four parallel races to develop The NPD declared that the
oil province – which also held far wells in the oil-bearing strata on
western and eastern sections as a One of the arguments against a single field. All the operators main structures in production
smaller resources. what became Oseberg South.
whole. horizontal drilling was the secured voluminous studies licences 054 and 085 were in pres-
The relatively thin oil layers The companies nevertheless
That in turn meant a develop- assumption that long production which demonstrated how they sure communication, and the field
in the gas province could not insisted that the thin and exten-
ment which not only brought the wells would drain inward in the would tackle the job indepen- was therefore to be regarded as a
be written off, of course, but the sive oil zones in Troll posed new
eastern gas quickly on stream reservoir from their entry point. dently. single reservoir.
first steps nevertheless had to be technological challenges for both
but also optimised resource use Pressure would thereby be Mr Bjordal retained all these Development of both struc-
in the west. Horizontal drilling in lower at the start of the well, documents, and quickly acquired tures had to take account of that,
both oil zones was then the only which might accordingly collapse a reputation for possessing the and the four Troll blocks were
answer. before production had got going NPD’s untidiest and most over- to be merged into a single unit
Saga pointed in its assessment properly. filled office. where each licensee’s holding
to the difficulties of hitting the Assessments commissioned Eventually, the Troll team saw reflected their share of the total.
producing zones, and concluded by Mr Krakstad found that that many of the studies and “This letter was one of the
that the oil was uninteresting. The increasing the size of liner perfo- reports came from the same con- most important single incidents in
same held true for expected tech- rations into the well would keep sultancies and were fairly similar. the fight over Troll oil,” Mr Krakstad
nology progress up to 2000, and the pressure constant at all times. The biggest difference was the says today. “Without it, Shell
the company also rejected test As a consequence of these name of the client. would have started production
output. simulations, the collapse theory The NPD found such duplica- on its own terms and the crude
Hydro pointed to low rates of could be eliminated and it was tion meaningless, and also wor- would have been lost for ever.”
production and also failed to see possible to assume higher pro- ried that the four operators would Unitisation was a reality by
any profit in the oil at that time. duction figures. each spend large sums on studies the autumn of 1985. To avoid the
But it was more hopeful of tech- Shell and Statoil also pre- which failed to take account of companies opting for cheap and
nology development and felt the sented calculations which showed integrated resource management. short-term solutions, the dura-
crude could have some promise. that sand and gravel in the oil It felt a block-by-block tion of the unitised licence was
Unlike the other three, Statoil zones were so unconsolidated approach by different operators extended from 2015/2019 to
concluded that the oil in the thin that it would be impossible to was definitely the worst-case 2030.
layers could be profitable but that guide the bit horizontally. scenario. The clear goal was to This was an official response
the rate of return would be well The maximum acceptable base development on an overall to fears among the licensees that
below its normal requirements for deviation from the vertical was assessment of the resources. much of the gas would remain
16 | NORWEGIAN CONTINENTAL SHELF 2-2012 2-2012 NORWEGIAN CONTINENTAL SHELF | 17
The conclusion on dynamic drilling was undoubtedly the roles equally between it and
Statoil was could not be imple-
production licence. Hydro was
probably an optimum choice for
Active
most important technical breakthrough for the Troll oil. mented with Shell as develop-
ment operator on Troll East.
the oil, precisely because Statoil
was its “opponent” as gas producer.
According to a 2006 report for
(Tore Bjordal) It concluded: “Restricting A high tax rate of 78 per cent
Hydro from Econ Analyse, the
Shell/Statoil’s operatorship to the and the consequent good oppor-
NPD “played a much more active
placing the bit and drilling long, gest political shocks from an the gas platform planned for Troll first gas platform opens opportu- tunities for depreciation had
role in developing [Troll’s] oil
stable boreholes. unexpected quarter – a Labour West had to be transferred to the nities for Hydro’s involvement in made the NCS the world’s leading
resources than it did in any previ-
According to Mr Bjordal, Shell government exercising its state eastern section, which posed no building the transport system and oil technology lab.
ous project on the NCS”.
was the most adamant of the ownership. problems. possibly in oil production”. The traditional rivalry between
To counter licensee doubts
operators in claiming that a com- This administration had taken Shell became development With Labour in government, Statoil and Hydro also helped
over horizontal drilling, the
mitment to developing innovative over after a non-socialist coalition operator for this Troll A facility, Statoil’s hopes of securing the Norway to position itself as the
agency held a two-day seminar
technology would be too risky. had been defeated on a vote of with Statoil scheduled to take oil operatorship rose. Mr Øien most innovative and creative oil
in April 1988 to identify what was
It pointed in part to the fact confidence in the Storting on 9 over when output began. The was once again forced to choose province on the planet.
happening internationally on
that the Troll development pro- May 1986. latter was also to sell the gas between the wholly and partly Hydro itself did not believe
recovery from thin oil zones.
ject was already breaching tech- With Labour’s Arne Øien and build the transport system state-owned companies. initially that the oil would prove
Its Troll team had demon-
nological barriers presented by installed as petroleum minister, required. He reprised his Togi decision particularly profitable, but com-
strated through simulations as
deep water and tough weather. such a change would normally Because the licensees had and took Hydro’s side, to wide- mitted itself flat out to the pro-
early as 1982 that horizontal wells
However, the NPD team have benefited Statoil. Its surprise been so reluctant to prioritise oil spread surprise. The Storting ject.
boosted production rates com-
investigated what had been done was all the greater when Mr Øien, production from Troll West, the voted in December 1986 to make That was because the work
pared with vertical drilling.
elsewhere and discovered that in his capacity as the company’s NPD and the MPE concluded that Hydro operator for a possible Troll involved so many technologi-
These studies had concluded
Shell and the other international general meeting, compelled it to this phase required a separate West oil project. cal development opportunities.
that oil recovery was profitable
companies in the Troll group were vote for Togi. operator. The unitisation deal was for- The company had already shown
from the thick zones but only
surprisingly ill-informed. The licence accordingly That had to be a company mally approved nine days later. great interest in adopting new
marginally commercial with the
With the aid of relatively unso- approved the plan, which which had or could adopt a dif- Both decisions fitted the NPD’s solutions on Oseberg and Togi.
thin layers.
phisticated search methods, the received a green light on 19 ferent agenda from gas alone. strategy of producing the oil, and Where the Troll partnership
The NPD had followed up this
agency could establish that many June 1986. In protest, Shell initi- The choice lay between Statoil its Troll team finally saw light at was concerned, however, it did
work by gathering information on
horizontal wells had already been ated tests in the Netherlands to and Hydro, but the former was to the end of the tunnel. not have so much to offer apart
horizontal drilling from all over
drilled around the globe. demonstrate that the project was take over Troll A when Shell was from the weight provided by the
the world, and now invited all
unworkable. finished. backing of the NPD and the MPE.
When these studies showed, The non-socialist government Competition A key reason for the persis-
the relevant players to attend the
Oseberg to the oil company’s astonish- wanted Statoil and Hydro to be tent reluctance to commit to the
seminar.
It emerged there that the
ment, that the opposition to Togi on an equal footing as Troll opera- oil was and is the use of present
Soviet Union had drilled short
had no basis in reality, it changed tors, and asked Statoil to choose With Hydro in the driving seat value calculations by the compa-
horizontal wells as early as the
Plans to inject Troll gas in Oseberg its strategy and fell back into line. between gas transport and the oil for the oil, the well-established nies in guiding investment to the
1930s and vertical boreholes with
to improve oil recovery from this Hydro executed the project operatorship. competition on the NCS between most profitable targets.
horizontal sidetracks in the 1960s.
Hydro development were submit- with great enthusiasm, and Hydro had previously been it and Statoil moved to a new and Such calculations clearly
Soviet drillers had completed
ted in the midst of the fight over scored a success. The company “compensated” with responsibil- demanding setting. showed that the most rewarding
many multilateral and horizontal
the oil and the jockeying for posi- gained useful experience both ity for the “diamond block”, which These two arch-rivals had route was to produce as much gas
wells up to 1980, primarily in
tion by the operators. with long-distance multiphase contained Visund but where the already challenged each other as possible in the quickest possi-
oil zones under gas caps. These
The NPD was keen on this flow and subsea production in first well proved to be dry. strategically and technologically ble way. Waiting for the oil would
could yield up to 10 times the
Troll Oseberg gas injection (Togi) deep water, which could later be In other words, Hydro’s organi- as operators and partners in vari- reduce present value.
output of conventional drilling,
scheme, both for resource con- applied on Troll. sation had spare capacity and was ous fields. Hydro’s present value results
and often give higher recovery
siderations and because it would pinning its hopes on Troll. But They were now both to be for Troll were not very different
factors.
give experience in long-distance some disagreement exists over operators in one and the same from those produced by Shell and
multiphase flow of oil, water and Three-phase how much it or Statoil wanted the Saga. But the operator role also
A virtually horizontal well had
been drilled through an oil layer
gas. oil operatorship. had a value in itself.
only four-eight metres thick with
Hydro was made operator for The perception in the NPD Apart from the prestige, being
a gas cap on Exxon’s Snapper field
the subsea Togi installation on Unitisation laid the basis for a was that many people in both in the driving seat provided
off Australia.
Troll, but a majority of the Troll three-phase development, start- companies still believed that Troll opportunities to develop its own
Successful horizontal drill-
licensees – Shell, Statoil, Mobil ing with the gas in Troll East, then was primarily a gas field and that organisation and attract the best
ing over as much as 500 metres
and Conoco – opposed the pro- the oil in Troll West and finally the the oil was actually a dead end. brains by offering interesting and
was reported at Prudhoe Bay in
posal. Troll West gas – expected to begin All the companies manoe- important jobs.
Alaska, and operator Arco claimed
This quartet could thereby flowing from 2024. uvred tactically in their fight over The operatorship helped to
a maximum deviation of one-
block the whole project. Elf and The plan for development and the assets, but both Statoil and boost Hydro’s commitment to
three metres from the planned
Total confirmed Hydro’s long- operation (PDO) of Troll East gas Hydro were undoubtedly inter- making the project as profitable
path.
standing good relationship with was approved in December 1986. ested in the oil job if it was indis- as possible. It may also have felt
With Elf reporting similar
French interests by supporting That confirmed Shell’s support for putably a separate assignment. that success with the oil would
experiences from the Medi-
Togi. starting in the east and producing In a letter to the MPE in pay off in future licence awards.
terranean, the seminar gave a
The Statoil management the oil on its own terms. January 1986, Hydro claimed that fresh boost to a process which
now experienced one of its big- One consequence was that the Storting’s decision to divide would make Troll Norway’s big-
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