TNO - AGE

Regarding energy & subsurface matters

Role of TNO’s AGE team:

Support to MEA (Directorate Energy)

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This presentation

1. What is AGE and what does it do?

2. Recently expressed priorities in the policy of theDutch Ministry of Economic Affairs (MEA)

3. (example of one of our projects)

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1. What is the “Adviesgroep EZ” (AGE)

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A brief historical overview

Once upon a time ………..

……there was a Geological Survey of the Netherlands (Rijks Geologische Dienst, part of MEA) and it had a department advising MEA on E&P matters

Until 1997

1997 : take-over of RGD by TNO

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Position of TNO-NITG, 1997-2004

15 individual TNO institutes

TNO-NITG(~350 staff)

(in totalsome

4500 staff)

DOC

(engineeringgeology)

(groundwater) (marinegeology)

(geo-information& systems)

Geo-Energy Deep SubsurfaceConfidential

GE

GW MK

GS

GI

TNO-NITG consisted of6 departments

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Overall TNO reorganisation per January 2005

15 individual TNO institutes

TNO-NITG

“ex-TNO-NITG”4 ‘Divisions

Geo-Energy

Geology (Quarternairy)

DINO

Groundwater & Soil

NITG no longer exists!

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Reorganisation per January 2006

5 “kerngebieden” TNO Bouw & Ondergrond)(Built environment & geosciences)

TNO B&O contains2 Geoscience business units

Geo-Energy & Geo-Information

Soil & Groundwater

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TODAY : AGE’s position within the Business unit Geo-Energy & Geo-Information

b.u. Soil & Groundwater

b.u. Geo-energy & Geo-information (~150 staff)bu manager : Chris te Stroet

6 other business units

Oscar Abbink Henk Pagnier Barthold Schroot Martin PeersmannRoel Verreussel

DINOGeobiologyA G EOil & Gas SustainableGeo-energy

CONFIDENTIAL

TNO Built Environment & Geosciences

Extra Firewall etc.

LocationUtrecht

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Advisory Group for MEA (AGE)

• ‘Special’ position within TNO (advise and information task)

• Ref. Article 123 of the Mining Act

• Mining Act states (Art. 123) that …. the Minister can appoint a body (institution) which manages the supplied data on behalf of the Minister and which advises the Minister on the basis of this data …

Mbr 11.4.1 defines TNO, Utrecht for this role

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Advisory Group for MEA (AGE)

• Works exclusively for the Ministry of Economic Affairs(but is not a government organisation itself)

• Main tasks twofold:

• Advise Ministry on E&P and the deep Dutch subsurface (all licensing matters, reserves estimates, risks, use of the deep subsurface etc.)

• Assist DINO dept. in maintaining / managing the Mining Act related database

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How does these tasks relate to what other TNOteams in the b.u. do?

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TODAY : AGE’s position within the Business unit Geo-Energy & Geo-Information

b.u. Soil & Groundwater

b.u. Geo-energy & Geo-information (~150 staff)bu manager : Chris te Stroet

6 other business units

Oscar Abbink Henk Pagnier Barthold Schroot Martin PeersmannRoel Verreussel

DINOGeobiologyA G EOil & Gas SustainableGeo-energy

CONFIDENTIAL

TNO Built Environment & Geosciences

LocationUtrecht

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The different ‘faces’ of TNO to the industry

TNO-AGE

Advice to MEA

DINOOil & Gas +Sustainable

Submission ofMining Act related Data

Release ofMining Act related Data

Technical discussionsw/r applications andproduction plans etc

InternalBarrierin TNO

Contract research,JIP projects etc

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Advisory Group for MEA (AGE): Policy support to the Directorate Energy market of MEA

• TNO-AGE works exclusively for the MEA, on project basis

• Traditionally tasks in the Work package Policy support are:• A) yearly report of reserves (inclusive prognoses),• B) advise with regard to field monitoring,• C) advise with regard to production related risk’s,• D) communication & information on E&P matters

(operators & other parties on various issues)• E) advise MEA on license applications.

• QC E&P data in DINO database

• Regional mapping deep subsurface of the Netherlands

Applied research-

task

information-task

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2. Recently expressed priorities of MEA

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Overall objective of MEA

• To maintain the level of exploration and production in next fifteen years.

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Current priorities in MEA’s policies

• “Gaswinningsbrief” Minister Brinkhorst (Oct. 2004)stated that “to improve access to information” was a priority

• Letter of Minister van der Hoeven (11 Feb. 2008) to Parliament

• to report on the evaluation of the Mining Law after 5 year

• trends and implications emerging from the evaluation:

1. New entrants E&P

2. Underground storage of natural gas and/or CO2

3. Geothermal energy

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Current priorities in MEA’s policies(ref. letter of 11-2-2008)

Evaluation of the Mining Law was in general positive, but some improvements are needed

• Objectives:

1. Maximize development small fields (also stimulate exploration)

2. Improve the Mining Climate

• Related Actions:

• Agreement (convenant) with the industry (which may include addressing fallow acreage)

• Make procedures w/r awarding of licences (and permits) more efficient

• Improve access to information (for new entrants) through the Dutch Oil & Gas portal, www.nlog.nl (immediate and important ROLE for TNO)

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Current priorities in MEA’s policies(ref. letter of 11-2-2008)

• Other Actions:

• Revise Mining Law w/r to storage of CO2 and natural gas

• Adjust Mining Law for the production of geothermal energy

• Identify & evaluate interference of activities on the North Sea (IDON) e.g. E&P wind farms

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Access to information: www.nlog.nl

• A new release of the Dutch Oil & Gas Portal was launched in December 2007

• Improved functionality

• More data & information• Well data• Seismic data• Field data

• Producing fields• Stranded fields

• Petroleum Geology maps & models• Licensing• Petroleum Geological bibliography of the Netherlands

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Dutch Oil and Gas Portal: WWW.NLOG.NL

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Access to information: www.nlog.nl

• A new release of the Dutch Oil & Gas Portal was launched in December 2007

BUT : a lot more is still needed !

Bottleneck : capacity (incl. budget) to make changes (IT) to both www.nlog.nl and DINO modules behind it

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Has the policy been effective (2005 – 2007)?

• # of new entrants?

• How many licenses have they obtained?

• Their expected level of activity?

• Development of stranded fields• Exploration wells

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Change in licences

November 2006 November 2007

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New entrants taking stranded fields (2005-2007)

About 10 new entrants have takenlicenses (exploration or production)

•Now almost all stranded fields are in licensed areas

•Still some 90 stranded fields left with approximate 35 bcm reserves.

•Listing can be found on www.nlog.nl