Norway in pole position: 20 years of CCS North Sea CCS: innovation and impact Aberdeen, September 7, 2017 Bamshad Nazarian Philip Ringrose Per Ivar Karstad Sveinung Hagen Britta Paasch Anne-Kari Furre Peter Zweigel Rune Thorsen Statoil ASA
The big question Can we get CCS volumes to the level that makes a difference Million metric tonnes of carbon 16000 Historic data 1 14000 2004-2014 trend Weak decay 12000 Constant emissions 2 10000 Moderate reduction Strong reduction 3 8000 6000 4000. for CO 2 emissions to atmosphere? History of global Carbon emissions and projected future curves based on annual emissions reduction rates: (1) Reduction already achieved, (2) Potentially underway (3) Still to be achieved 2000 Ringrose (2017) 0 1800 1850 1900 1950 2000 2050 2100 Year 2
Norway s CCS track record Snøhvit CCS operational since 2008 Norwegian CCS value chain project (2016-2022) CO 2 capture test centre (TCM) operational since 2012 Sleipner CCS operational since 1996 Ø 21 years of operations Ø Building confidence in CCS Ø >21 Mt CO 2 stored Ø New full-scale CCS project operational in 2022 3
Sleipner update Utsira Formation Summary Net/gross: 0.98 Porosity: 35-40 % Permeability > 1 D ~ 200 m thick GR 0 150 TVD (m) 850 900 950 1000 1050 DT 240 40 Insights from geophysical time-lapse monitoring 1000 m Injection point 855 Top Utsira Two Way Time [ms] Injector Producers 915 4
Sleipner monitoring programme 1996: Injection start 2016: 16 Mt Seismic Gravimetry Visual monitoring Furre et al. 2017 Chemical sampling 5
Sleipner summary Ø Main learning: CO 2 storage is technically feasible ØThe World s first commercial-scale offshore storage project Storage unit: 800-1000 m depth, 200 m thick, high permeability More than 16 Mt CO 2 has been injected since 1996 Ø Challenges: Role of internal shale layers on plume movement Predicting CO 2 plume flow behaviour Ø Take-aways: CO 2 plume can be monitored by seismic and gravimetric methods Significantly improved understanding of CO 2 storage processes 6
Snøhvit update Ø First onshore capture - offshore storage project (combined with LNG) 150km seabed CO 2 transport pipeline Saline aquifers ca. 2.5km deep adjacent to gas field CO 2 stored initially in the Tubåen Fm. and then in the Stø Fm. (2011-) CO 2 Gas LNG plant (Melkøya) 7
Snøhvit CO 2 injection history and status Down-hole pressure data Ø Continuing stable injection of CO 2 CO 2 injection into the Tubåen Formation until April 2011 Injection then diverted into the Stø Formation following well intervention 4.3 Mt injected by end 2016 (1.1 Mt injected into Stø) LWI Island Wellserver 8
Snøhvit well intervention in 2011 Ø Successful well intervention guided by monitoring data Rising pressure due to geological barriers led to well intervention Integrated use of geophysical monitoring and down-hole gauges 4D amplitude map Injection point 9 From: B. Osdal et al., 2014
Monitoring techniques applied at Snøhvit Seismic 3D/4D repeats (so far 3 repeats) 2D repeats (so far 1 repeat) Multiple Temperature / pressure Gauges Continuous measurement Weekly shut-in measurements Long fall-off when feasible Well Logging In-flow logging Pressure & temperature Gravimetric 86 bases positioned (1 repeat) Down-hole data: P, T, Q 10 Classification: Open 2014-10-14
Snøhvit summary Ø Main learning: geophysics and injectivity ØThe world s first offshore CO 2 transport pipeline Distance: field-to-onshore facility is 150 km Storage unit: 2400-2600 m depth >4 Mt CO 2 has been injected since 2008 Ø Challenges: Reservoir heterogeneity Near-well flow limits Ø Take-aways: Need for robust design of injection system in heterogeneous reservoirs A good Plan B is invaluable when reservoir uncertainties are large 11
Towards full-scale CCS in Norway 2016 Feasibility study Concept selection: Three industrial onshore capture sites Design basis of 1.5 mtpa (37.5 Mt CO 2 over 25 years) Ship transport solution Land based offloading terminal Saline aquifer storage ~50km offshore pipeline Subsea injection well Smeaheia Possible location onshore OSLO Norcem Cement Factory, Brevik EGE Energy Recycling plant, Oslo Yara Ammonia plant, Porsgrunn 12
Smeaheia storage concept Onshore temporary storage Pipeline to injection location Offshore subsea injection Storage site: Smeaheia depleted saline aquifer (Jurassic) Alpha structure on the western side of the fault segment 1200-1500 m depth Expected capacity of at least 100 million tonnes Good scale-up potential 13
Storage feasibility study (2016) Three sites investigated Injection concepts for each one of them were matured in terms of data availability and project potential Smeaheia Heimdal Utsira S 14
Utsira south: site summary Known reservoir from Sleipner operation Non-licensed area south east of Sleipner Reservoir depth 900 M Good reservoir properties Investigated structure: not enough capacity Old exploration wells can pose a risk Utsira South 15
Heimdal: site summary Pressure-depleted gas field Known reservoir Strong pressure support from water zone In operation since 1985 GIIP: 61.4 GSm 3 Produced gas: 45 GSm 3 Equivalent to 150 Mt CO 2 In operation Production stop planned in 2018 Limited technical life span 16
Smeaheia: site summary 2 exploration wells 3D seismic coverage Known reservoir from Troll field Fault block shallower than in Troll Field Depth 1200 1700 m 50 km from the coast (Kollsnes) 17
Evaluated three concepts for further development CO2 transport ship Loading buoy Flexible riser Extension of riser Subsea template Direct injection Subsurface safety valve Well CO2 transport ship FSI Loading buoy Flexible riser Extension of riser Subsurface safety valve Subsea template Injection via ship (FSI) Well Onshore storage CO2 transport ship Export pump Pipeline Subsea template Injection from a land-based terminal (pipeline) Subsurface safety valve Well 18
Main conclusions from feasibility study Recommend to go ahead with Smeaheia land based terminal as main alternative Should consider several locations onshore for the terminal Utsira South is recommended to be discontinued Not enough storage capacity in studied structure Direct injection into Heimdal and Smeaheia is not recommended Project plan indicates start in 2022 19
CO 2 storage technically validated, but Lacking business model and commercial drivers Immature regulatory frame conditions Wrong balance between the risk and return on investment Regulatory barriers for agreements between countries make it very demanding to establish new CCS value chains 20
For discussion 1. Can injected CO 2 be monitored cost-effectively? 2. Do we have enough storage capacity? 3. Are we technically ready for very large projects? 4. Is CO 2 storage safe? Yeso Maybe o No o Yeso Maybe o No o Yeso Maybe o No o Yeso Maybe o No o 21 Classification: Open 2014-10-14
Evaluating CO 2 EOR Potential Several desk-top studies to evaluate CO 2 EOR potential on the NCS the last ~20 years Projects found to be non-commercial, for many reasons: CO 2 availability Expensive top-side modifications Alternative flooding mechanisms more favourable Uncertain reservoir/infrastructure performance Project economics However, new technological solutions and growing need for CO 2 management might give future business potential for CO 2 EOR. Offshore infrastructure map 22
CO 2 EOR Step out concept sketch Isolated greenfield segment? Brownfield Subsea solutions Currently screening candidates to identify realistic CO 2 EOR prospects Platform solutions CO 2 storage 23
Norwegian CO 2 Storage: Future potential Ø Reduces risk and threshold Ø Enables additional CO 2 storage Ø Allows stepwise development of CCS from more hubs Distances to Kollsnes: Norway 600 km; Teesside 750 km; Rotterdam 900 km Ø Basis for development of CO 2 value chains for: CO 2 EOR Natural gas to hydrogen Possible catalyst for roll-out of CCS in Europe? 24
Summary Sleipner 20+ years experience with CO 2 storage Leveraging infrastructure, knowledge and experience Big storage potential on the Norwegian Continental Shelf 21 years with CO 2 storage Main challenges for CCS -> Business model, regulative and commercial drivers The Norwegian CCS could trigger: Further CCS from Norway and Europe CO 2 for EOR Hydrogen production 25
Norway in pole position: 20 years of CCS Presented by Bamshad Nazarian E-mail bna@statoil.com www.statoil.com 26 Statoil ASA