MEETING PLACE: As early as during ONS in 2012, Petoro's message was crystal clear: "Lite tid. Mye igjen" (Short on time. Long on resources.) This year's message is "Langsiktig konkurransekraft skapes nå" (Creating tomorrow's competitiveness today). Photo: ONS/Kallen
IMPORTANT TO ENSURE FUTURE VALUE CREATION
Measured in terms of production, Petoro has the second largest licence portfolio on the Norwegian Shelf, through the State Direct Financial Interest (SDFI). With current oil and gas prices, this means around NOK 300 million in revenues every single day. Petoro aims to maximise the value of this portfolio.
The large, mature fields on the NCS account for a significant share of our production, and have already generated enormous values for several decades. There are still substantial values to be extracted from these fields. Therefore, Petoro has emphasised challenging the licence partnerships by identifying opportunities for further development of the fields.
Major changes have taken place in our industry. We have moved from being driven by ambitions of growth and greater volumes to a new focus on margins and cash flow. This will have considerable consequences for how the oil companies operate and set priorities.
"We note that the willingness and ability to undertake new investments is lower than before. Today's situation requires that oil companies, to a greater degree than previously, balance short-term earnings against long-term investments," says Asset Manager Kjell Morisbak Lund in Petoro's Licence Dept.
"It is both positive and necessary that we adapt to a new business situation, but we must not forget that the fundamental precondition for value creation in our long-term industry is that we can do just that – have a long-term, comprehensive mindset."
MORE COMPETITIVE PORTFOLIO
In addition to realising the values in mature fields, Petoro's strategy defines enhancing the competitiveness of its portfolio as a priority area. The industry has taken steps to curb costs.
"The most important contribution we can make to improve competitiveness is to reduce uncertainty in the revenue base and promote efficiency," says Morisbak Lund.
Petoro's work in the licences is focused on making constructive suggestions to facilitate good solutions.
"We are confident that the operators and partners are doing a very good job. Our role is to find alternatives and to propose improvements. We are strong proponents of fully exploiting the diversity in the licences to ensure the best possible development," says the Asset Manager.
The Oseberg field is one of many mature fields where the challenge is to identify a profitable basis for further investments. Petoro's efforts to find such a basis are now paying off. The recently approved development of the Oseberg West Flank 2 is a result of such long-term assessments. Petoro is currently very involved in similar work on the important further development projects on Snorre, Troll and Heidrun.
USE EXPERIENCE IN NEW DEVELOPMENTS
“We are also extremely focused on using the experience gained from the mature fields in major new field developments like Johan Sverdrup and Johan Castberg. That doesn't mean that we have to build the final solution right away, but we must not deprive ourselves of the opportunity to develop the best overall solution for the longer term. Today's decisions must not limit tomorrow's opportunities," says Morisbak Lund, and adds:
"Despite the challenges we are working on, it's important to note that the activity level is very high today. We have great faith in the future, and our job in the current situation must be to make decisions that keep all our options open for future value creation. Our constant goal must be to make new, profitable investment decisions for decades to come.
New at ONS
Brand new this year at ONS - Technical Sessions. 16 different programme items designed to please all the technical specialists that visit ONS.
Asset Manager Line Geheb in Petoro was in charge of the work to put together the programme for the new technical sessions. She led a committee made up of very competent representatives of both operators and suppliers.
"There was impressive interest, both as regards holding lectures and participating. The new programme fills a need that hasn't been addressed previously," says Geheb, and goes on to tell us that the committee's point of departure was the ONS theme – transition – and two major challenges facing our industry: costs and climate change. Several of the lectures deal with issues raised in this edition of Petoro Perspektiv.
"The lectures address the different ways that technology can contribute both to cost-effective and energy-efficient solutions throughout the entire course of a field development, from exploration to P&A and shutdown. For example, I am looking forward to hearing Statoil talk about the Aasta Hansteen development and GE Oil & Gas talk about new and more efficient offshore compression solutions," says Geheb, who is a chartered engineer with a degree from NTNU and many years of experience from the oil industry.
ONS also has a very exciting conference programme, with many parallel sessions and top-notch speakers. All visitors to the exhibition have access to Centre Court, where the programme focus is on new forms of energy.
See the programme at ons.no
Petoro's Line Geheb was in charge of the work to put together the programme for ONS Technical Sessions. Photo: Bjørn Tore Bjørsvik, ONS