Extreme cold challenges & experience from an industry perspective

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Outlook
! TOTALs current involment in extreme cold development
Kashagan Kharyaga Shotkman Snhvit

! R&D organization ! Technical challenges ! Conclusions

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TOTAL Assets
1000 km 1000 km SNHVIT SHTOKMAN KHARYAGA KHARYAGA

! Co-venturer in the development of huge field in the Caspian Sea area

Kashagan oil field (Kazakhstan)
North Caspian PSA: TOTAL 16.81% First Oil: 2012

! Operator of an oil field in Russia

Kharyaga oil field
PSA: TOTAL 50% operator Producing from October 1999
KASHAGAN KASHAGAN

! Snhvit operated by Statoil: the first LNG plant to

be built in cold weather conditions in Europe
SHAH DENIZ

! Partner in an Operating Co. in Russia

Shtokman gas field
25% share of a SPC development and operation of Phase I

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Kashagan

Island D in winter

37 Drilling Islands 240 wells 1.5mln bopd plateau production Offshore & onshore processing and Gas compression plants 8 to 9 9m mde height haut (soit un
immeuble de 3 tages)

NCOC Operator Operator wind vent

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KHARYAGA

! Located in Timan Pechora, North Polar circle ! 1st onshore PSA signed in 1995 (Objects 2&3) ! TOTAL operator (50%), Statoil (40%), NOC (10%) ! Complex carbonate reservoirs ! Waxy oil, with H2S content ! Production : 30 000 bopd

Experience on: ! Permafrost engineering and operation ! Working Conditions

-53C absolute minimum temperature important wind (annual mean 4.2 to 6.1 m/s with a winter variation from 18 to 24 m/s)

Kharyaga in winter (March)

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Snhvit
! Three fields: Snhvit, Albatross, and Askeladd ! A 145- kilometer pipeline for gas to Melkoya Island: processing, liquefaction, storage and loading facilities ! CO2 content: 5.3% Snhvit, 7.9% Albatross

Statoil Petoro Total GdF Amerada Hess RWE

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33.53 % 30 % 18.4 % 12 % 3.26 % 2.8 %

The Shtokman field

Two main sandstone reservoirs: J0 & J1 Sweet & lean gas 3.8 trillion Sm3 of natural gas 37 million tons of condensate

Water depth ~ 340 m Rough seabed Harsh metocean conditions Possible packed ice and icebergs Min. air temperature: -15C / -38C Min. seabed temperature: -1.8C
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Shtokman Project description

! Gas & condensate field in the Russian Barents sea
Discovered in 1988 IGIP: 3800 GSM3 Water depth: 340m, Offshore at 550km from Kola peninsula Very good petrophysical properties

! Phased field development

Phase 1: 7,5 MT/y LNG & 11 GSM3/y pipe gas Onshore plant at Teriberka

! A first class Russian project:

Tie-in to the North Stream To satisfy LNG long term consumption growth

! SDag: Gazprom 51 % - TOTAL 25 % - Statoil 24 %

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Icebergs Management at Shtokman location

! Icebergs in open water and embedded in Sea Ice, can come from Franz Joseph Land and Novaya Zemlya glaciers ! 220 icebergs observed around Shtokman area over 48 years ! In 2003, more than 15 icebergs have been observed close to Shtokman, 2 of them weighting more than 3 millions tons. ! Collision with FPU ones in 110 years, if not managed

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Extreme Cold R&D Organization

Projects Advanced technology R&D

Technical Departments

Yamal

Health & Safety for Arctic

Total R&D centers Institutes JIP PhD Collaborations

LNG (executed by ED/LNG) Arctic Engineering

& Technologies

Shtokman

Kharyaga Snhvit Others

Feedbacks & Scouting Environment

Acquisition/ consolidation of an internal expertise

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Extreme cold Challenges

! Essential to preserve the environment in a sensitive ecosystem ! Extreme weather conditions:
Sea Ice and Icebergs Icing Polar night Low temperatures Permafrost area

Polar low, Barents Sea, 27 Feb. 87

! Winterization (snow, icing, wind)

Construction, Installation & process integrity Personnel protection

! Remoteness - Transportation of personnel and equipment ! Emergency Evacuation and Rescue

Different environments: wave and ice Offshore: floating platform too far from shore for evacuation by helicopter, Onshore: ice road vs helicopter but seasonal restrictions
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Outside work conditions & limitations

! Windchill affects temperature conditions,
Lowest T C Kashagan -40 Wind m/s 24

Khariaga

-53

Mean 5.2 Max 38

Shtokman Yamal

-40 -57

28 Max 32

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TOTAL approach to technical challenges

! Health & Safety
Ongoing innovative R&D program on winterization of workplace modules, Development of knowledges to protect/facilitate work Design of logistics rules adapted to each area of concern EER issue

! Engineering & technology

Development of new materials and/or technologies from other industries Adequate monitoring technologies Gap analysis of existing technology vs needs

! Environment:
Adaptation of techniques for a Zero harmful discharge policy Prevention, early detection & remediation of oil spill (under ice, thaw/frost)

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Conclusions
! Extreme cold areas present a huge potential with reserves ! Protected areas with sensitive ecosystems ! No universal techniques & solutions but adaptation to local context ! Need of expertise acquisition and strong partnership

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Please dont forget ATC 2011

! http://www.arctictechnologyconference.org/

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! BACK UP

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Yamal project

1 Cold wear

Contractor

Sintef & NTNU

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2 JIP EER in Ice Covered Waters

Contractor
Petroleum Research Atlantic Canada

Partners : Statoil / Total / Chevron/ Exxonmobil/ Shell/ COP Develop an approved, commercially-available EER system (or systems) capable of operating under anticipated operating scenarios WP 1 Define design drivers WP 2 - Design WP 3 Prototype & evaluation WP 4 Manufacture a commercial product

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3 Cold Climate technology project ColdTech

Contractor
Norut

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4 Sea ice modelling in the Marginal Ice Zone (MIZ)

Budget: 3.011 MNOK (no partner) Duration: 2007-2010

Contractor

! Objectives: Development of an improved ice-ocean model in the marginal ice zone for better forecasting ice drift and hot spot of productivity ! Deliverables: An improved model for sea ice drift in the marginal zone area ! Validation areas: Fram Strait and Barents Sea. ! Application areas: Part of the emergency operations plan for oil spill (forecast of oil in ice drift, forecast of most sensitive exposed ecosystem).

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5 Thermal-mechanical effects on 1st year ice (PhD)

1. Theorical studies

Contractor
2. Lab works

University of Svalbard

3. Site investigations

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6 JIP Arctic material

Contractor

SINTEF

Partners : StatoilHydro / Total / ENI / Scana / Bredero Shaw / Treeleborg / JFE / Nippon steel / Aker solutions / Vetcogray and DNV joining by the end of 2009 Duration : 5 years starting in 2008 extended to 2018 WP 1 - Steel fabrication and mechanical characterization WP 2 - Strength and toughness criteria for safe materials utilization WP 3 - Polymer coatings WP 4 - New concepts and materials solutions
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7 JIP Oil in Ice Oil Spill Contingency for Arctic and Iceinfested waters
Budget: TEPN: 826 k (Total: 4958 k) Partners Duration:2006-2009 ! Objectives: Develop tools and technologies for environmental beneficial oil spill response strategies for ice-covered waters ! Validation area: Field tests Barents Sea in 2008 and 2009 ! Application areas: All areas with ice infested waters

Contractor
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