Statoil is expanding into offshore wind power and has set a target of 9 GW of capacity by 2020. Offshore wind is a lower margin industry that requires a different mindset and governance model than oil and gas. Statoil will focus its renewable energy efforts on areas where it can apply its existing technology and experience. Its first project, Sheringham Shoal, met commercial targets and provided learning for future projects. Statoil sees potential for huge cost reductions in offshore wind and hopes to demonstrate grid parity without subsidies in the 2020s. Future projects may involve synergies with oil and gas expertise and working with contractors to improve safety and planning.

1. Statoils vindkraftsatsning
Halfdan Brustad Vice President
2012-09-16

2. Revitalise NCS
with high
value barrels
Develop a
leading global
exploration
company
Continue
portfolio
management to
enhance value
creation
Create value
from a superior
gas position
Build material
positions in 3-5
new offshore
business
clusters
Apply technology
to expand in
unconventionals
Production
above
2.5 million boe/d
in 2020
Carbon
capture and
storage
Offshore
wind
Marketing
and trading
Upstream-
integrated
positions
Gradual
growth
Maximise
upstream
value
A strategy for superior profitability and growth
Strategic mid-
and downstream positioning
Upstream strategy
Renewable energy
and low carbon technologies
2

3. A focused Renewable Energy strategy
Efforts in renewables will be focused in areas where Statoil has
technology and know-how to enhance value
3

4. Culture implications
• Lower margin industry – different mindset
Change in key drivers; from Schedule/early production to
CAPEX/OPEX
• Governance model with a different industry
Utilities vs. Oil & Gas
• Smaller team covering the whole value chain
• Early granting of governmental support/subsidies
• Simplification of work processes, but keeping the
requirements

5. Culture implications cont.
• Fairly young industry – pioneering
• Key vital contracts early; Wind Turbine Generator
• Operation model
• Larger degree of involvement in logistics
• Greater involvement with landowners

6. Sheringham Shoal in the Statoil Portfolio
• Good commercial project
− Met Statoil IRR
• Full production from 2012
− 317MW installed capacity
− 88 turbines
• Learning from Sheringham Shoal
− Dogger Bank
− Bringing down the costs
6

7. 7
Key facts
• Estimate capacity: Agreed target
9 GW by 2020, with the potential for
c.13 GW
• Area: 8660km2 (3343 square miles)
• Equivalent to Size of North Yorkshire
• Distance from shore: 125-290 km
(77-180 miles)
• Water depth: 18-63 m (59 to 206 ft)
• c.4 GW in <30m water depth, c.8 GW
in <35m water depth
• High wind speeds >10 m/s average
wind speed across the zone
DOGGER BANK KEY FACTS

8. Huge upside potential
Gives commercial opportunities!
• Time for new competitive commercial concepts
(technical, operation, financing, insurance etc)
• Use technology break through from other
industries
• Expand market place – competitiveness
• Need to balance innovation and standardization
• Demonstrate grid parity early 2020’ies
• Floating wind?
EUR/MWh
Levelized cost of electricity, CoE
10-15% cost reduction per market doubling expected for
offshore wind, from a very low base
UK Price Forecast
Offshore - 10%
learning
Offshore - 15%
learning
2010 2020
8 -

9. Synergies
• Large complex projects
• Key competences Marine coordination and
activities, project management, logistics,
operation etc.
• Entry in new areas
working with contractors to enhance HSE
and planning understanding
• Stakeholder management
• Broader commercial approach

10. A future depends on
• Need to have synergies with our competence
and skills.
• Projects need to be competitive and profitable
• The industry need to demonstrate
competitiveness without need of subsidies
• Demonstrate that we influence the industry
• Work together with other key value chains

11. Presentation title
Presenters name
Presenters title
E-mail address ……@statoil.com
Tel: +4700000000
www.statoil.com
2012-09-16
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