#1petroleum RESEARCH newfoundland & labrador Collaborative Research and Development in the Newfoundland and Labrador Offshore Oil and Gas Industry February 9, 2012 Doug Cook#2Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#3Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#4Value The Economic Value of R&D Today petroleum RESEARCH newfoundland & labrador R&D adds value Export of technology and services, including R&D Safe Operations Lower Costs Increased recovery Fields in production Tomorrow#5Innovation Competitiveness - NL OECD Quebec Ontario British Columbia Alberta New Brunswick Newfoundland and Labrador Manitoba Prince Edward Island 2001 Nova Scotia Saskatchewan 0.00 0.50 1.00 petroleum RESEARCH newfoundland & labrador % of Provincial GDP Provincial BERD Intensities, 2008 (Source: Review of Federal Support to Research and Development, "Innovation Canada: A Call to Action - Expert Panel Report", 2011) 1.50 2.00#6R&D/E&T Funding Requirement Key requirements: • Eligible spending: C-NLOPB R&D Guidelines = Gross Revenue X Five Year Average % R&D per Statistics Canada Less Development Credit · - R&D/E&T activity carried out in the Province of Newfoundland and Labrador Increased R&D, education and/or training capacity in the Province Pre-approval of R&D projects is required from C-NLOPB • Production phase requirement is spread over each Production Operations Authorization (POA) period during production life petroleum RESEARCH newfoundland & labrador#7Presentation Outline R&D in the Newfoundland & Labrador Oil & Gas Industry . The Role and Structure of Petroleum Research NL Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#8Petroleum Research Newfoundland and Labrador Organization Background · Petroleum Research Newfoundland and Labrador is a federally incorporated, not-for-profit organization · • Founded in 1999 as the Atlantic Canada Petroleum Institute Renamed Petroleum Research Atlantic Canada in 2002 Collaboration among academia, governments and the oil and industry in Atlantic Canada gas petroleum RESEARCH newfoundland & labrador#9Restructuring Restructured to become the principal delivery agent for collaborative offshore oil & gas industry-based R&D funding in Newfoundland and Labrador - - - - Closed Nova Scotia office in April 2011 Nova Scotia R&D projects returned to Operators Funding Members are now NL industry only Non-voting provincial and federal representatives on the Board of Directors petroleum RESEARCH newfoundland & labrador#10Mission Statement Our mission is to identify opportunities, develop proposals, fund, and manage the execution of research and technology development projects on behalf of the Newfoundland and Labrador offshore oil and gas industry. petroleum RESEARCH newfoundland & labrador#11Members Chevron ExxonMobil Husky Energy nalcor energy Statoil SUNCOR ENERGY petroleum RESEARCH newfoundland & labrador#12The Role of Petroleum Research NL Project Project R&D Plans Project FUTURE Project Project Agreements Petroleum Research Agreements petroleum RESEARCH newfoundland & labrador e.g. Research Chair Operator E&T R&D Direct Funding Collaborative Petroleum Research NL Joint Projects & Activities Leveraged FUNDING (ACOA, RDC, NSERC, ETC.)#13Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#14Strategic Focus Areas R&D Programs Snapshot Arctic & Harsh Environment Directed R&D Programs Trenching Ice Management Program Seeding Programs 2013 Call for Proposals Subsurface/Advanced Well Design Hydraulic Fracturing Chemical EOR (Enhanced Oil Recovery) Acoustic Zoom Subsea Processing 2011 Call for Proposals Other JIPS (e.g. EOR in Complex Reservoirs (MUN)) Health, Safety & Environment Other petroleum RESEARCH newfoundland & labrador Escape Evacuation Rescue (EER) in Ice Safety & Survival Simulation 2012 Call for Proposals Other JIPS (e.g. Dive Masks) Miscellaneous studies CREATE Mitacs Internships#15Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#16Petroleum Research Strategic Focus Area Arctic and Harsh Environments To develop technology to reduce risk and/or cost of operation in arctic and harsh environments petroleum RESEARCH newfoundland & labrador#17Arctic R&D Capability Cc-core Innovative Engineering Solutions MEMORIAL UNIVERSITY BMT Fleet Technology petroleum RESEARCH newfoundland & labrador MI MARINE INSTITUTE MRC-CNRC INTECSEA WorleyParsons Group#18Trenching JIP Objective • Develop proven trenching system for protection of subsea systems against ice scouring of seafloor so future field developments can be planned based upon reliable, predictable execution of trenching effort Scope • Understand trenching requirements in specific conditions • Evaluate improved trenching technologies • Evaluate marine infrastructure needs • Extend trenching technology capabilities to meet requirements • Conduct field trials to evaluate and prove capabilities petroleum RESEARCH newfoundland & labrador#19Project Kickoff June 6, 2011 Trenching JIP - Phase 1 2012 Q1 Review and Evaluate Trenching and Excavation Systems Develop Functional Specification for Trencher System Issue Request for EOI Establish Contractor Assessment & Evaluation Process Shortlist Recommended Contractors for Detailed Study Evaluate Contractor Studies & Phase II Proposals Generate Phase I Report & Submit Establish Study Basis & Criteria Generate Contractor Expression of Interest (EOI) Finalize Potential Contractor List for EOI Finalize SOW for Detailed Contractor Studies Contractor EOI Visits and Screening Award Contractor Studies & Phase II Proposal petroleum RESEARCH newfoundland & labrador Phase I Completion Select Phase II Candidate Technologies Development 2012 Q4#20Ice Management Program Overall objective • Improve ice management system to improve safety, operational efficiency and capability in existing arctic and harsh environments Scope Improved ice management performance and technologies • Evaluate new technologies through field trials • Integrate technologies with operations • Train personnel in ice management technologies petroleum RESEARCH newfoundland & labrador#21Statoil Chevron Statoil SUNCOR ENERGY Chevron Husky Energy ExxonMobil Chevron Statoil ExxonMobil. ExxonMobil Image NASA ExxonMobil SUNCOR ENERGY nalcor energy 2008 Go#22Potential Research Projects Suggested Research 2012 2013 2014 2015 Ice/Iceberg Detection Dual Pol Marine Radar Advanced Satellite Radar Data Fusion Threat Analysis & Drift Forecasting Towing Towing Automation Ice Management/ Pack Ice Station-Keeping Other Detection Technologies Enhanced Iceberg Drift Models Enhanced Sea Ice Drift Models Managing Large Icebergs Managing Icebergs in Pack Ice Iceberg Tow Automation Multi-Vessel Ice Management Performance Improved Icebreaker Design Ice Load Prediction for Compliant Structures Development of Enhanced Dynamic Positioning (DP) Systems Ice-Modified Structures#23Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#24Petroleum Research Strategic Focus Area Subsurface/Advanced Well Design Develop knowledge and technology to increase recovery from declining & future field developments, and develop marginal reservoirs petroleum RESEARCH newfoundland & labrador#25Subsurface / Advanced Well Design Objectives • Increase recovery rates from existing reservoirs • Reduce the costs of development wells Scope • Evaluate current technology and methods. • Define technology gaps, identify new technology • Optimize new and existing technologies to be applied locally • Improve well design solutions for reservoirs petroleum RESEARCH newfoundland & labrador#26Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#27Petroleum Research Strategic Focus Area Health, Safety and Environment To develop technology to reduce health, safety and environmental (HSE) risks for operation in arctic and harsh environments petroleum RESEARCH newfoundland & labrador#28NIC CHIC#29Health Safety and Environment HSE has been a long-term focus area for Petroleum Research • Largest funding priority historically $2.5M into 24 projects petroleum RESEARCH newfoundland & labrador#30Some Current Projects Produced water monitoring and treatment • Low-cost sensors for characterization of fugitive or flare emissions Simulation systems for safety training Escape Evacuation Rescue (EER) in Ice schat-harding KISS800 petroleum RESEARCH newfoundland & labrador#31Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#32. . Objectives Seeding Programs - Support capacity development in strategic focus areas – Initiate technology development in early part of the - innovation supply chain Key Activities - NSERC-CREATE Training Program for Offshore Technology Research (MUN) - Mitacs Accelerate Internship Program - - Annual Call for Proposals petroleum RESEARCH newfoundland & labrador#33⚫ Objectives ● ● Calls for Proposals - Provide formal mechanism to hear about new ideas - Initiate technology development in early part of the innovation supply chain - Keep the funnel full Applicants define the scope of work and propose projects within a specified subject area Focused on applied R&D in conceptual development phases - 2012 Call (Health Safety and Environment) closes February 10, 2012 petroleum RESEARCH newfoundland & labrador#34Call Process/Timeline Call Issued EOI Deadline EOI Review Begins Full Proposal Deadline Review Begins Project Launch Request for Full Proposals Proponents Notified M1 M2 M3 M4 M5 M6 M7 M8 Researcher Activity petroleum RESEARCH newfoundland & labrador Review Activity Funding Agreement Execution#35Presentation Outline • R&D in the Newfoundland & Labrador Oil & Gas Industry The Role and Structure of Petroleum Research NL . Petroleum Research NL Programs ☐ Strategic Focus Areas ➤ Arctic and Harsh Environments ➤ Trenching Ice Management Subsurface / Advanced Well Design Health, Safety and Environment ☐ Seeding Programs ➤ 2012 Call for Proposals ☐ Unsolicited Proposals petroleum RESEARCH newfoundland & labrador#36Unsolicited Proposals We accept unsolicited proposals that are aligned with our Members' interests • Process – Submit Expression of Interest form found on website - - Petroleum Research reviews submissions and advises proponents of initial decision – Members review selected EOIs - If interest exists, invitation to submit full proposal - Accepted proposals are subject to standard Petroleum Research agreements petroleum RESEARCH newfoundland & labrador#37Closing Messages • 90% efforts to Directed Research on Strategic Focus Areas (Major JIPS) . • Scale is increasing . Project Execution and Business Savvy matter Confidentiality Intellectual Property petroleum RESEARCH newfoundland & labrador#38petroleum RESEARCH newfoundland & labrador Thank You