Other important factors include the development of new discoveries, the proving of new resources through intensive exploration activity, increased access to new licences, greater focus on health, safety and the environment (HSE), and optimal use of existing infrastructure.

Our overall strategy on the NCS is defined as:

• Safe, efficient and reliable operations
• Realising the full potential of the NCS in terms of developing profitable oil and gas resources 

Maintaining the current production level

As several fields on the NCS mature and production declines, high priority will be given to the implementation of measures to increase production from existing fields. The main measures in this context are more efficient drilling, increased regularity and improved oil recovery (IOR).

Higher regularity is expected to be achieved through improved well work, better reservoir management, de-bottlenecking of export infrastructure, improved planning of turnarounds and fewer topside plant failures.

Additional production is expected to be achieved by means of new capacity, including ramp-ups on Ormen Lange and Snøhvit, new field developments and implementation of IOR measures. 

Tie-ins to existing infrastructure on fields that are in decline and/or have reached a critical point in their technical life will also have high priority. A well-balanced asset portfolio on the NCS with respect to regions and maturity is necessary to sustain total oil and gas production at current levels. 

We need to achieve optimal development and exploitation of our existing portfolio in order to secure a solid foundation for future growth through continued high exploration activity.  Active infrastructure-led exploration is a key factor in extending the life of the infrastructure in the tail-end production phase. However, access to new, prospective acreage is also necessary in order to maintain a high production level in the longer term.

One of our ambitions is to become one of the leading players in the Arctic by 2020. Considering the long lead times of field developments, opening new acreage in the near term is imperative. Succeeding in new field developments in the northern areas of the NCS is a priority for StatoilHydro. Important efforts are currently underway to maintain stable operations in the Snøhvit LNG project, and to support a timely and robust development of the Goliat oilfield. However, new high-quality exploration acreage remains a critical prerequisite for long-term success. To meet our ambitions in the far north, we have to feasibly address challenges in a range of areas - including geology and technology.

Gas position

The proportion of natural gas from our NCS portfolio is increasing. We have a flexible transportation system, with six different landing points on the European Continent / UK and flexibility in terms of gas deliveries from large gas-producing fields such as Troll and Oseberg.

Safe and efficient operations are essential to our business

All activities in StatoilHydro are conducted with high focus on HSE in order to prevent harm to people and the environment. The implementation of Integrated Operations (IO) is expected to enhance economic value through higher production, higher regularity and cost reductions. Upgrading and modification programmes for offshore installations are also planned with a view to maintaining safe and efficient operations.

Our ongoing efforts to introduce one common operating model and common work processes on all our installations on the NCS will enable us to utilise best practices, and optimise use of our total resources to ensure safe and efficient operation.

Unit production costs on the NCS have been rising in recent years, in step with the developments in the industry. StatoilHydro's management is implementing measures to contain future cost inflation. 

The climate challenge

E&P Norway aims to maintain and strengthen the NCS's position as the most energy-efficient petroleum region in the world. We intend to push for energy efficiency in our day-to-day operations and evaluate new field developments from a long-term perspective with regard to energy and the environment. E&P Norway also plans to put more effort into developing a more energy-efficient supply chain with a life cycle perspective.

Industry leader on the NCS

We seek to maintain a stable relationship with suppliers, competitors, government and other stakeholders. The NCS is an arena for world-class innovation and technological development. StatoilHydro is a leader in the deployment of new technology, including drilling and subsea technology, new solutions for reducing costs and the use of new technology for developing discoveries. As the largest operator on the NCS, we are leaders in the development of optimal area solutions and the overall development of the NCS.