Porteføljeledelse i Hydro O&E Morten Gulliksen Hydro O&E Porteføljeledelse i Hydro O&E

Ernst&Young, 2003: Hypotese: ”There is a substantial unrealised potential for saving cost and improving the performance of project investments by implementing an effective corporate-wide process for project portfolio management.” Alle var enig! Stage/gate er viktig, men ikke nok Delprosesser eksisterer Topplederansvar!

Hva er Prosjekt-porteføljeledelse Strategisk nivå: Analyse Prioritering Valg av prosjekter Taktisk nivå: Planlegging Organisering Ressursallokering Synergier Oppfølging, rapportering, informasjonsformidling

Ferdigstilte prosjekter Tampen Troll TORDIS SNORRE VISUND FRAM NJORD TROLL C TROLL B VIGDIS SNORRE B Oseberg Heimdal OSEBERG S OSEBERG Ø OSEBERG ABD The organisation has extensive and broad experience from 18 major offshore developments in addition to satellite-tie ins and modifications on NCS. The portfolio consists of floaters as well as fixed platforms. We became operator of The Oseberg Field Development in 1982 and the Grane and Fram Vest projects were delivered in October last year. Tampen area was transferred to Statoil 1st of January 2003. VARG VALE TUNE BRAGE HEIMDAL GRANE OSEBERG C

Satellitt tie-in + topside modifikasjoner In addition to large projects we have executed several satellite tie-in projects with good track record. We have a proven record in technology implementation, a strong subsea experience and a good working relationship with this part of the industry. A good, seamless cooperation between Hydro organisations and a constant dedication to increase recovery and reduce cost have contributed to the results. We have shown competitive performance and large synergies in managing several projects.

Land-prosjekter QAFCO IV TYIN SU4 QVC The organisation has executed large and complex onshore developments, both in Norway and abroad for the last 100 years. Recent projects include Hydro Power Plants, Fertilizer Plants, Petrochemical Plants as well as Aluminium Smelters. We are now completing the work on the worlds largest ammonia urea plant in Qatar, and Europe’s largest aluminium smelter at Sunndalsøra. Both projects are on schedule and within budget frames. New technology has been implemented without hindering the projects progress and cost development. These projects have added valuable experience in managing international contractors, particularly in the Middle East area.

Ormen Lange Nyhamna plant Gas export Multiphase transport Steep and uneven terrain Seabed development (850-1100m deep) The Ormen Lange subsea to shore development concept is another example of how Hydro constantly challenges the technology barriers. The development consists of a large subsea system located at 850-1100 meters water depth approximately 120 km. offshore. The combination of long distances, extremely difficult seabed conditions, rough environmental conditions and challenges within flow assurance, require confidence and experience to successfully execute this project.

Internasjonal Canada Norway Russia Gulf of Mexico Iran Angola Libya

Chief Financial Officer Hydro’s organisajon Norsk Hydro President and CEO Eivind Reiten Communication Legal Department Internal Audit Chief Financial Officer Executive Vice President John O. Ottestad Leadership & Culture Executive Vice President Alexandra Bech Gjørv Oil & Energy Executive Vice President Tore Torvund Aluminium Executive Vice President Jon-Harald Nilsen Operations Primary Metals Other Businesses Exploration Metal Products Petrochemicals Markets Rolled Products Treka Oil Marketing Extrusion Hydro IS Partner Projects Automotive Hydro Production Partner North America Hydro Business Partner

Robert Johan Fredriksen Oil & Energy Oil & Energy Tore Torvund Business Development Kjetil Solbrække Human Resources Lise Sollerud Finance Jørgen K. Andersen Communications Hege Marie Norheim Angola Jan Helge Skogen Exploration Operations Øystein Michelsen Markets Hilde Myrberg Canada Torgeir Opdahl Lars Christian Alsvik Gulf of Mexico Helge Haldorsen Projects Morten Ruud Oil Marketing Bengt Göran Markeborn Iran Robert Johan Fredriksen Libya Tor B. Lund Russia Arvid Halvorsen

Porteføljeledelse – strategisk nivå Risikostyring, risikospredning, unngå dårlige prosjekter! Internasjonal strategi: Oppkjøp av påviste reserver Utbygging med Hydro’s teknologi/kompetanse: Reservoirforståelse Boreteknologi Flow assurance Prosjektgjennomføringskompetanse Norsk sokkel Tie-in til eksisterende infrastruktur Utvidet olje og gass produksjon (Troll, Oseberg) Nye blokker

STEA (Software Tool for Economic Analysis) Utforskningsstrategier Optimalisering av investeringer Porteføljeanalyser value creation risk capital exposure Konkurrentanalyser

Integrated Uncertainty Production profiles oil gas System availability pi(t) Time to first oil/gas Tax Market/Sale DRILLEX CAPEX OPEX ABDEX TARIFF

Risk analysis - portfolio Reduced risk p Estimate confidence intervals Volume year t Prod. Boe/d P90 P10 P90 P10 E(prod.) Critical prod. year t Time

Portfolio modelling / Reports Norsk Hydro Barents sea Project 1 Project 2 Project 3 Angola Project 4 Project 5 North Sea Project 6 Etc..... Base case portfolio Operator Sector etc.

Porteføljeledelse – taktisk nivå Konkurransedyktighet Treffsikkerhet (holde det vi lover)

Konkurransedyktige prosjekter Kvalitet og effektivitet Integrert planlegging av prosjektutviklingsfasen (Reservoir, Drilling, Teknisk løsning, Drift) Gode arbeidsprosesser (PMI, CVP, Prosjekthåndbok) Allokering av ressurser og effektiv utnyttelse av disse Synergier Kampanje-løsninger (boring, installasjon av subsea utstyr og rørledninger, løftefartøy. Bemanning for gjennomføringsfasen Kontrakt/Innkjøp (buying power) og effektiviseringmuligheter hos våre kontraktorer

Capital Value Process - CVP Business idea Development Feasibility phase Concept Selection phase Prep. for Execution DG1 Operation DG2 DG3 DG4 Commercial / Hydro Market Processes Operational Processes Capital Value Process DG5 Decision Gates DG1 Approval to start feasibility DG2 Approval to start concept selection DG3 Principal Decision DG4 Final Capital Expenditure Approval DG5 Acceptance by Operations Decision Gate Support Package Gatekeeper Decision Gate review Post Investment Review

Standard sekvens DGn - DGn+1 Gatekeeper to decide/initiate Start-up arena Risk Mg DG review Review meetings DGn DGn+1 Work + IDC Kick-off PDRI DGSP

Post Project Review Strategic Background Project Execution Schedule Capex Business Case Performance Profitability Operating performance Technology strategy, Risk Management, Commercial close-outs Key Learning Points Overall Score

Videreutvikling Strategisk nivå Taktisk nivå Kontinuerlig vurdering av portefølje Andre parametere (rykte, politisk risiko, samarbeid, vekst etc.) Integrering mot Business Planning Taktisk nivå Prosjektkontor, gjennomgående ansvar i hele O&E Porteføljeoversikt Integrert planlegging Implementering i Feltenheter i Drift, Bergen

Utfordringer Lederfokus, etterspørsel Kunnskap, forståelse, vilje Implementering