1. Ødegaard
NORWEGIAN NORTH SEA COMPETITIVENESS
FOCUS ON PROSPECTIVE TRENDS
Author: Stig-A Kristoffersen Ødegaard Norge AS
SUMMARY
Overall exploration activity is decreasing in Norwegian Offshore Continental Shelf (NOCS) areas. For how long time will the NOCS area be competitive in a global arena for
exploration – 40 years or less ? Will only gas and mid-Norwegian Continental Shelf be of interest for the industry – or will NOCS – North Sea area come back?
We illustrate that the NOCS - North Sea still has good exploring/ exploiting opportunities left. We present results from some of our studies performed on both amplitude
and ISIS © generated acoustic impedance (AI), lithology-fluid (LFP) datasets from the NOCS - North Sea area.
Focus here is on North Sea 2002 round areas. Reservoir, trap and source risks are evaluated, and illustrations on how inversion can reduce these exploration risks, both in
mature as well as immature areas in NOCS- North Sea. Utilization of visualization techniques (f.inst. 2D to ”pseudo” 3D and attribute extractions), through VOXELvision™
has shown to improve the turn-around time for prospect analysis.
All the lines illustrated here are found in the inversion packages available for North Sea Round 2002.
Dry Well Dry Well
• Acoustic impedances are
relatively high at the well location.
There is no indication from the AI
data that porous zones are
present, and well information
confirms this.
• Lower AI zones east of well
location indicate higher porosity
zones
Gas WellGas Well
• In the area of just east of the well location a
relative lower acoustic impedance is detected.
The well is a marginal gas discovery.
• Low AI areas are also found further eastwards
on next structure, both in upper and lower part
of section. None of these intervals have been
tested in this area.
Global acoustic impedance values for all
plots.
Low values have darker colours and
high acoustic impedance are indicated
by bright – red colours.
Dry Well Dry Well
Dry Well
• At well location (Area B) acoustic impedances
are low. Well found to be dry, with traces of
hydrocarbons.
• Area just west of location has even lower
impedance magnitude.
• Low acoustic impedance areas further
westwards off structure (Area C), which could
separate stratigraphical trap system, not tested
by well.
Dry WellDry Well
• At well location the acoustic impedance is high,
the well found to be dry, no hydrocarbons.
• In the area east of location, the inversion
results shows a relatively lower acoustic
impedance. AI indicate two relative thick high
porosity zones. Potential new untested
prospects.
A
A
BC
B
C
Dry WellDry Well
• At well location AI is relative high, the well was
found to be dry.
•AI also indicate relative thick high porosity zone
at apex in drilled structure location.
• Areas just west of location have significant
lower acoustic impedance. There are potential
new prospects west of well location, new
untested structures/ stratigraphic traps can be
found.
STUDY AREAS
I
II
III
IV
V
I
II
III
IV
V
Concession areas
Seismic Area
Nominated areas North
Sea round 2002
Acoustic
Impedance in
a 120 msec
time interval
– illustrating
low
impedance
channel
systems with
deep marine
fan
sequences
further west.
Outlined is
the potential
hydrocarbon
filled area
Thickness interval with
acoustic impedance
lower than 7.4 106 kgm-
2s-1. Max thickness with
this cut-off criteria is
approximately 20
meters. Varying this cut-
off, will make it possible
to assume different risks
levels for reservoir
presence and source
together with trap
integrity.
The Well has only 1-2
meters of hydrocarbon
bearing sands in this
interval
i i
ii
a
a’
a’a
EVIDENCE OF
ANOTHER
GOLD BLOCK
IN QUADRANT
35 ?
SOUTHERN
NORTH SEA
ARE THERE
STILL
DIAMOND
BLOCKS LEFT ?
ROCK PHYSICS CONTRIBUTES TO
UNDERSTANDING OF;
• RESERVOIR
• TRAP
• SOURCE
The results are made utilizing ISIS (c) and Lithology Cube (c) technology
developed by Ødegaard A/S
Oil/Gas
Well
Oil/Gas
Well
i
ii
Hydrocarbon filled channel features
and deep marine fan systems is
mapped out in a lithology and fluid
cube, utilizing the Acoustic Impedance
and Poissons Ratio cross plotts.
The resulting Lithology – Fluid Cube is
then used for mapping out potential
prospects in this area.
Both hydrocarbon thickness and
reservoir thickness can be estimated
and varied according to risk model
applied in zones of interest.
a’a
a’a
AI: 106 kgm-2s-1 Thickness: Meters

2. Ødegaard
ANNOUNCED 2002 BLOCKS
NORWEGIAN NORTH SEA – 40 YEARS OF EXPLORATION
AWARD INTEREST
Large number of blocks nominated, but fewer blocks awarded in later
years, and few blocks awarded out of announced blocks from
authorities. In addition is the exploration well activity at its lowest in 35
years.
Is this due to lack of prospects to drill, or is it due to other factors?
Only 15% of offered acreage awarded in last North Sea round (10
Concessions awarded out of 68 whole or partial blocks)
NEW ROUNDS
The new North Sea Round – will it attract the
industry – or will it only attract a few players?
We are of the opinion that prospectivity still is
large in NCS areas, but are they large
enough?
Last round – towards open door policy in
future – will this increase interest amongst
players?
EXPLORATION SUCCESS
775 exploration wells drilled since 1965, 58 field developments are
approved. We still believe there is room for middle sized fields in both
mature and immature areas in NCS – North Sea area.
In addition NOCS – Mid Norway and Barents Sea offers opportunities
for the industry.
Increase in discovery frequency in NOCS areas, from around 30 % to
about 40% discovery rate at the moment.
CHALLENGES
High taxation levels
High minimum volumes for economic development
Slow development cyclus
Slow and unclear qualification process for smaller companies
Pressure to re-invest due to tax motivation
Exploration activity is mainly in deep waters and gas driven.
0
20
40
60
80
100
120
Statoil
N
orsk
H
ydroExxonM
obil
TotalFinaElf
C
onoco-Phillips
Shell-Enterprise
BP
Agip
Am
erada
Idem
itsuR
W
E
-D
E
A
M
arathon
G
dF
D
O
N
G
Paladin
C
hevronTexaco
Svenska
D
N
O
AE
SC
M
oeco
ValueNOKBn
Fewer player in NOCS areas - room for farm-in/-out possibilities.
Unit Costs
0
5
10
15
20
25
30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
$/bbl
Economic cut-off
Majors interst in large prospects (large NPV), gas, Norwegian Sea
Few majors interested in < 100 mill barrels, if not close to infrastructure
Major part of licenced acreage in hands of major oil and gas companies.
The 2 Norwegian Majors focus on international expansion
The International majors rank globally, and Norwegian acreage fall behind (example
TFE and ExxonMobil did not participate in 17th round)
Only independent companies will be able to produce at lower costs and counter-act
the interest trend seen in recent years.
The independant and related contractor business is critical for further
development of norwegian oil and gas industry in NOCS areas.
Need for innovative and different solutions to develop further potential
in NOCS areas.
Cost effective operations together with usage of high technology tools
in the whole value chain.
Authors: Stig-A Kristoffersen1, Jørgen Moe1, Rolf Magne Pettersen1, Franscisco Porturas1, Kim.G. Maver2 & Christian Mogensen2 , Ødegaard Norge AS1, Ødegaard A/S2
SUMMARY
Overall exploration activity is decreasing in NCS areas. For how long will the NCS area be competitive against other global arenas for exploration ?
Prospectivity of region should attract players, but should the policy be changed in order to attract smaller players than today?
CONCESSIONS
DRILLING - CHALLENGES
NUMBER OF PLAYERS
MAJOR vs INDEPENDENT
TIMING FOR ACTIVITY IN NORWAY IS
RIGHT
Before major changes in industry.
Few smaller independent, competition is
limited.
Good petroleum province with historic good
success rate.
All variations of maturity of shelf represented.
Large remaining reserves – even in mature
areas.
Department and authorities are positive to
mix of minors and majors in industry.
Higher frequencies and stability in licence
rounds.
Improved culture for trade of fields and
licences.
Consolidation amongst the majors implies
increased portfolio management.
Different focus amongst players will increase
potential for players – even independent
minors.
Lower unit cost – demands innovative thinking and lower overhead
The amount of exploration wells has
to increase from todays activity level,
which is the lowest level in 25 years.
This means give room for smaller
independant companies looking for
more opportunistic exploration
strategies
AWARDED BLOCKS IN 2002 (Source NPD)
Acknowledgements
The authors thank Fugro-Geoteam and TGS-NOPEC for permission to to show data in this
presentation.
(Source NPD)
(Source Paladin)
(Source Paladin)
(Source NPD)
(Source NPD)