Annual Report 1998 - SINTEF · leum industry that market conditions can change ra-pidly. In the...

annualreport1 9 9 8

SINTEF GROUP

annualreport1 9 9 8

During 1998 the oil industry experienced the most dramatic change in oil prices since the

mid-1980s, with prices dropping to USD 9 per barrel.After the high, record breaking activity in 1997 thiswas an important reminder for the Norwegian petro-leum industry that market conditions can change ra-pidly.

In the years to come, we will meet an oil industrythat will be reluctant to approve any field deve-

lopment that is not profitable even at oil prices belowUSD 10 per barrel. This will require a breakthrough inseveral on-going technology developments includingcomplete sub-sea installations with phase separation,water purification, re-injection, sand control and flow-assurance additives, and multiphase transport toexisting infrastructures or on-shore facilities in combi-nation with intelligent wells, reservoir monitoring andcontrol systems. To combine this technology with thedemand for increased oil recovery will be a challeng-ing task that will create new opportunities for SINTEFPetroleum Research. We are well prepared to meetthis challenge, and we already have many projects fo-cusing on research in these areas.

As a result of the fall in oil prices, explorationcosts have been brought into sharper focus.

Future exploration technologies must be more costeffective and meet the demand to reduce uncertaintyin undrilled prospects. SINTEF Petroleum Researchis also well prepared to meet this challenge. Our shal-low drilling concept has been an important contributi-on in bringing down exploration costs and, in the futu-re, we will continue our efforts towards this goal. Weexpect many of these achievements to result fromtechnological advances within seismic and basin mo-delling.

The many mergers among oil companies in 1998(and the first half of 1999) have reduced the

number of customers for all petroleum research insti-tutes. As a result, the volume of research and deve-lopment commissioned by the petroleum industry isexpected to decrease and the competition within thepetroleum related R&D community will increase.SINTEF Petroleum Research will continue to enhan-ce its competitive advantage by maintaining a soundfinancial basis, modern laboratory facilities, a super-computer and, most important, a highly-qualified staffworking on leading edge technologies.

David Lysne, President

IKU - annual report 1998 1

Activities

In 1998, IKU Petroleum Research (IKU) hadan operating profit of NOK 0.2 million (0.3% ofnet income). The profits including capital reve-nue totalled NOK 1.8 million (2.6% of net inco-me). Before extraordinary expenses the ope-rating profits totalled NOK 2.7 million (3.9% ofnet income).

The Board wishes to thank the staff for theirefforts in carrying out their responsibilities in1998. The profits are considered satisfactorywhen taking into account the large and dra-matic changes in the petroleum industry. Thisprovides a good basis for continued develop-ment of the institute as a resource for the oiland gas industry.

1998 was characterized by a dramatic fall inoil prices. The likelihood is high that the oil pri-ce will remain low, in the order of USD 10 toUSD 13 per barrel, until year 2001. The lowprices resulted in a challenging market for re-search and development services. Overallcost cuts by many of our customers led to theabandonment or postponement of a series ofprojects that had been considered sold at thebeginning of the year. This resulted in a largeincome loss, which has been countered withsignificant cost reductions. The scientific acti-vities in the departments have been morestrongly focused on areas that are in demandeven when oil prices are low; in particular, ac-tivities contributing to less costly and more ef-ficient exploration and production on the Nor-wegian continental shelf.

From 1 January 1999 the institute’s namechanged from IKU Petroleum Research to

SINTEF Petroleum Research. The primary re-ason for the new name is that «IKU», the Nor-wegian acronym for «The Continental ShelfInstitute» no longer reflects our core activities.«SINTEF» was included in the new name forthe market advantage it offers the companyas well as the SINTEF Group.

In 1998 the Board approved an extraordinaryexpenditure for the purchase of a SiliconGraphics ORIGIN 2000 supercomputer. Atpresent this is the third largest supercomputerin Norway. This computer will give resear-chers at the institute the opportunity to main-tain and even increase their competitive leadin several fields where computing resourcesare heavily in demand.

In 1998 the Board also focused on the year2000 (Y2K) problem. The administration hasmapped out the effects of the millennium tran-sition for the institute and, in 1999, will intensi-fy the follow-up relative to suppliers of equip-ment, software, electricity and telecommuni-cation services in order to have the best pos-sible control of the situation at the end of theyear.

Important scientific activities

The financial results and the principal scientificactivities of each department are describedbelow.

Petroleum Geology

The 1998 operating result for this departmentwas NOK 0.8 million, 6% of the net income ofNOK 12.7 million.

2 IKU - annual report 1998

Report from the Board of Directors, 1998

In 1998 the department’s focus shifted evenfurther towards reservoir and production-ori-ented research activities, which now also in-clude structural geology studies. An importantarea of research in which the department hasestablished a good reputation is the study ofpore-scale reservoir properties. This researchis aimed at providing a better understandingof the relation between the sedimentary andmineralogical characteristics of reservoir rockformations and their petrophysical parame-ters, such as porosity and permeability. Thedepartment has several projects within this fi-eld that are examining special aspects of re-servoir porosity on the Halten Bank (refer alsoto the section on Formation Evaluation).

Some projects were aimed at predicting theprobable structure of reservoirs through geo-logically determined stochastic modelling,sedimentology, and stratigraphy. The depart-ment was responsible for the scientificaspects of a drilling project in the Barents Seafor the Norwegian Petroleum Directorate.Work is being continued in projects on regio-nal geology in the Norwegian Sea and the Ba-rents Sea. A multi-year project related to basindevelopment in the northern North Sea is nownearly completed. In 1998, the departmentalso started work on problems related to thedeposition of CO2.

Basin Modelling

This department’s 1998 operating resultamounted to NOK 0.5 million, 6% of the NOK8.6 million net income.

In 1998 the department continued pursuingthe strategy of focusing on topics that are par-ticularly relevant for improving the predictionof hydrocarbon phases in undrilled prospects.This includes studies of multi-component kine-tics in important Jurassic source rock. Thegoal is a more accurate determination of thetemperature at which various components are

generated under geological conditions. Impro-ved instrumentation has reduced experimentaluncertainty and has improved reproducibilityin experimental data. Future work will focuson the kinetics of selected components for ap-plication in the prediction of hydrocarbon pha-ses in undrilled structures.

A prototype of a source rock facies simulator(OFmod) has been developed with input fromsediment deposition modelling software. OF-mod, which is written in Java, is aimed at ma-king process-based predictions of, for exam-ple, the amount and type of organic materialto be used in 2D and 3D basin-modelling stu-dies. The most important contribution of thisnew tool is a more accurate determination ofuncertainties in source-rock models.

The projects Smaccers (financed by the EUand Norsk Hydro) and SMIFF (financed by theResearch Council of Norway and eight oilcompanies), have provided us with new in-sights into the migration processes in shalesand reservoir rocks, and secondary migrationin faults and fractures. IKU’s contribution hasincluded methodology for using clay-smearsealing of faults in migration simulations (builtinto the migration simulator SEMI), and a newmethod for modelling 3D pressure buildup infault compartments over geological time peri-ods. This last method was developed as partof a doctoral study that is now being comple-ted. This technique is based on consideringfaults as boundaries of pressure compart-ments and, among other things, is used forstudying how reservoir diagenesis and shalecompaction contribute to generating pressureon a geological time scale.

The hydrocarbon migration simulator, SEMI, isnow licensed to several oil companies whereit is actively used in various basins around theworld. The first user meeting was arranged in1998.


Seismic

The operating result for this department total-led NOK 0.8 million in 1998, 12% of the NOK6.5 million net income.

In 1998, the department concluded a FORCE(Forum for Reservoir Characterisation andReservoir Engineering) project in seismic mo-nitoring with six participating oil companies.The project resulted in the development of amethod for calibrating two sets of data fromtwo seismic surveys against each other sothat seismic data could more clearly reflectproduction changes in the reservoir. Good re-sults were obtained with data from the NorthSea, and the method will be developed fur-ther. It is also well-suited for seabed seismicsand will be adapted to this type of data. Thedevelopment of three-dimensional AmplitudeVersus Offset (AVO) inversion for theestimation of rock parameters from seismicdata has continued by means of tests usingreal data from the North Sea.

In addition, on the basis of accumulated expe-rience, we have developed methods in moretraditional AVO analysis. The development ofa method for seismic hybrid modelling is beingcontinued in co-operation with NORSAR. Themethod combines complementary modellingtechniques to give an improved and more effi-cient modelling of complex reservoirs.

Drilling and Well Technology

The 1998 operating result for this departmentwas NOK 2.8 million, 21% of the NOK 13.6million net income.

In 1997, a focus on «intelligent» wells was ini-tiated in the department. In the course of 1998this activity was greatly expanded as a resultof increased acceptance among the oil com-panies in the potential of this technology.

In 1998, an application was submitted to theResearch Council of Norway for support in

establishing a strategic institute program (SIP)involving IKU and two SINTEF institutes - Electronics and Cybernetics and AppliedMathematics. After fruitful co-operation amongthese units, the Research Council awardedSINTEF a contract for a SIP on intelligentwells. The programme is led by Drilling andWell Technology, and has a time frame of fiveyears, starting from 1999. The financial scopeof the program is NOK 29 million.

A two-year programme, completed in 1998,focused on modelling local variations in thegeomagnetic field at the surface of the earth.Financed by three Norwegian oil companies,the programme resulted in a new method for arunning correction of instruments for depthand directional measurements while drilling(MWD) during drilling. This is an importantcontribution towards increasing accuracyduring drilling in complex reservoirs, and haspotential to significantly reduce the cost of dril-ling. This cost saving is achieved by reducingthe need for additional measurements fordetermining position, so-called gyro-measure-ments, when MWD reliability is increased.Thus far, the method has been used by thethree Norwegian companies in 13 wells withvery good results. It is now being implementedby the largest companies in directional drilling.

Throughout the year a significant effort wasput into product development related to drillingand well equipment. The work included impro-ving the methodology for product develop-ment and generating new ideas for well equip-ment that could potentially increase safety, im-prove well data acquisition, and/or reducecosts. Examples of recent products include apressure-pulse actuated blowout preventervalve for use while drilling. The work also in-cludes studies related to the use of so-called«shape memory alloys». This has led to anumber of new concepts for actuators, cou-plings and seals for use in wells.


Formation Physics

The department’s actual operating result for1998 was NOK 1.1 million, 10% of the NOK11.1 million net income. However, the depart-ment has had to bear the cost of an exceptio-nal expenditure of NOK 1.6 million towardsthe Strong Point Centre «Petroleum-RelatedRock Mechanics». Therefore, according to for-mal accounting practices, the 1998 operatingresult for the department was NOK -0.4 million,-5% of an NOK 9.5 million net income.

Research on sand production has alwaysbeen one of the department’s core areas ofwork. Normally, sand production is a problemfor the oil industry since it results in wear andtear on pipes and equipment, fills up separa-tors and sometimes even wells. It also pre-sents a waste-disposal problem. In 1998, theFormation Physics Department started anot-her three-year project in this field. The projec-t’s main objective is prediction of the amountof sand likely to be produced under given con-ditions. Another important area of research, inwhich there was a lot of activity in 1998, con-cerns problems related to drilling in shales. Athree-year project on logging of mechanicalproperties was completed in 1998. The projectwas carried out for a large American servicecompany that now offers services based onthe project’s results. In essence it was thecontinuation of a programme that started in1987, financed by five oil companies. A signifi-cant part of the remaining work in the depart-ment has also been related to formation eva-luation. Two new programs, which are expec-ted to run over several years, were initiated in1998; one dealing with hydraulic fracturing inweak rocks and the other dealing with seismicproperties of shale regions and unconsolida-ted layers. One of the staff members in thedepartment was given the 1997 SINTEFAward for Outstanding Research.

The Multiphase Flow Laboratory

The 1998 operating result for the departmentwas NOK -0.4 million, -5% of the NOK 8.0 mil-lion net income.

On behalf of a customer in Japan, the depart-ment has examined the possibility of recove-ring natural gas from hydrate reservoirs. Thework involved developing a transient modelfor melting hydrates in the sea bed. The pro-ject is part of a large, five-year programme inJapan that ends in 1999. The project showedthat recovering natural gas from hydrates inthe sea bed is extremely complicated.

1998 also marked the completion of a two-year, multi-client project in which the depart-ment collaborated with the Institute for EnergyTechnology (IFE) in studying the behaviour ofthree-phase oil-gas-water in pipelines. Theproject will be continued in a new, two-yearproject starting in the second half of 1999.One area of marked growth for the depart-ment is the full-scale testing of equipmentcomponents in the department’s flow-labora-tories. The major part of the department’s acti-vities in the last quarter of 1998 was in thismarket area.

The department collaborates with SINTEFEnergy Research and SINTEF Applied Mathe-matics on a five-year strategic institute pro-gramme, ACMAR, which aims at developingpowerful software tools for building cost-effec-tive and customer-specific flow simulators formultiphase flow in pipelines. At the end of1998, two years out of the programmes five-year span had been completed.


Reservoir Technology

The 1998 operating result for this departmentwas NOK -1.7 million, -20% of the NOK8.5 million net income.

Effects of hydrodynamic activity on the oil-water interface have been studied in laborato-ry experiments and through laboratory-scaleand field-scale simulations. These studieswere motivated by observations of inclined oil-water interfaces in several oil reservoirs. Whi-le the slope of the oil-water interface may bethe result of hydrodynamic activities in theaquifer below, a better understanding of thefactors influencing it may reduce uncertaintyassociated with exploration, drilling and pro-duction of oil reservoirs.

A research project, RESERVE Foam, wascompleted in 1998. The project has addres-sed how foam flows through porous media,and how the presence of oil can influencefoam propagation. The project also involvedthe study of foam degradation as a result ofthe separation of gas and water due to gravity.Apart from RESERVE, foam-related activitiesincluded studies of a foam injection pilot at theSnorre field with analyses of foam behaviourin the field based on process knowledge andlaboratory measured foam parameters.

A study of particle size distribution for systemswith asphaltene precipitation has providedhigh-quality quantitative information of suchsystems. In core flooding experiments asphal-tenes have shown to have a potential to redu-ce the rock permeability.

A new, exact scaling-up formula has been de-veloped using methods from algebraic geo-metry. The solutions are particularly relevantfor general modelling and scaling up verticalcommunication in oil reservoirs with barriers.Together with the Department of PetroleumGeology, a study is being conducted to explo-re the possibility of scaling up data recorded

from thin sections to relevant, plug scale pe-trophysical data. This work may provide anew, rapid and low-cost procedure for measu-ring capillary pressure and absolute permea-bility in cases where plug scale measure-ments are not performed. A general, three-di-mensional mathematical model has been de-veloped describing thermodynamic equilibri-um in a system of up to four components andfive phases. The model simulates three-phaseflow through hydrate and/or ice.

Formation Evaluation

The interdisciplinary research area of formati-on evaluation had a turnover of NOK 7 millionin 1998. Five of IKU’s seven departmentswere involved in this scientific network.

There has been an explicitly stated strategy ofintegrating formation evaluation with related fi-elds such as reservoir geology, geophysicsand reservoir technology. The initiation of athree-year project that focus on integration ofmineralogy and sedimentology in petrophysi-cal interpretation is a result of this strategy.

The mineral chlorite has played an importantrole in the preservation of favourable reservoirquality in certain deep reservoirs on the Hal-ten Bank. Its effects on petrophysical log re-sponses were studied in a two-year projectthat ended in 1998. Quantitative analyses ofthe pore-wall mineralogy using scanning elec-tron microscopy and image processing techni-ques represent an important method in thisproject.

Formation evaluation through «intelligent»wells emerged as a new activity in 1998. De-veloping methods for monitoring the reservoirthrough seismic and electrical sensors perm-anently installed in the well will give an impor-tant contribution to better reservoir control.


Publications

In 1998, members of the institute staff gave45 presentations at national and internationalconferences, and published 19 articles inpeer-review journals.

Personnel

A total of 91 man-years of work were perfor-med in 1998. The 1999 budget allows for 95man-years of work.

At the end of the year, the institute had 95 em-ployees, including 62 researchers, 33 ofwhom had doctoral degrees. Two staff mem-bers completed their doctorates in 1998, anda total of 10 doctorate studies are underway.Fourteen employees left the institute in 1998,while 12 new staff members were employed.In addition, the institute acquired 11 new em-ployees on 1 January 1998 as a result of thetransfer of the Multiphase Flow Laboratory fromSINTEF Energy Research.

In 1999 and in the future, recruitment will fo-cus on the institute’s principal areas of work.Recruitment of qualified research staff was asignificant problem in most of these fields untilthe end of 1998. IKU continued the trend from1997 of recruiting a number of researchersfrom other countries.

Staff resignations have mainly affected threedepartments: Petroleum Geology, Drilling andWell Technology, and Formation Physics. Fivepeople left the Department of Petroleum Geo-logy while three new staff members were em-ployed. At the Department for Drilling and Welltechnology, three left while two people haveaccepted job offers and will start work in thefirst quarter of 1999. Four staff members leftFormation Physics but three new peoplestarted. At the departments of Basin Modellingand Seismic, the personnel situation wasstable in 1998. Seismic added one new staff

member. The Department for Reservoir Tech-nology employed three new people in 1998,one employee left. The Department of theMultiphase Flow Laboratory has employedtwo new people while one person has left.

In 1998, IKU had seven (advisor) agreementswith scientific staff at NTNU.

Yearly discussions with each employeeindividually represent an important part of theinstitute’s organizational development.

Health, Safety and the Environment (HSE)

The institute’s system for safeguarding thehealth and safety of its employees, and theinternal and external environment, meets therequirements for internal control. This ensuresthat neither our laboratory activities, nor ourhandling of chemicals results in any contami-nation of the work environment or of the ex-ternal environment. Through the WorkEnvironment Committee (WEC) we workclosely with our employees, exchanging infor-mation and discussing important aspects ofthe work environment. Three meetings wereheld in 1998.

Practically all HSE-related proposals in 1998were carried out. The exception is the imple-mentation of a new quality assurance system.This has been postponed until the middle of1999 in order to take advantage of recom-mendations in the quality assurance hand-book that will be common to the entireSINTEF Group. The implemented HSE-proposals include a fire protection course forall employees, a first-aid course for the stand-by emergency group and laboratory person-nel, courses in chemical substance archiving(Chess) for relevant staff, a safety survey ofoffices and laboratories, and risk analysis forthe Multiphase Flow Laboratory.


Leaves of absence due to illness averaged3.3% in 1998, compared with 5.2% theprevious year. Most absences were due tolong-term illnesses.

Financial Situation

The 1998 operating result was NOK 0.184million compared to NOK 5.0 million in 1997.Including capital revenue, the 1998 profits to-talled NOK 1.8 million compared to NOK 9.4million in 1997.

The 1998 operating result reflects an excepti-onal outlay in connection with an investmentin a supercomputer with an annual depreciationof NOK 2.2 million that was not included in the1998 budget. There was an additional depre-ciation of NOK 0.4 million of a new financialand personnel system (Masterpiece) that willbe implemented throughout the SINTEFGroup in 1999.

Equity capital totalled NOK 55.4 million, whichnow accounts for 50% of the total capital.Liquidity was improved by NOK 11 million, to

NOK 75 million in the course of the year. Capi-tal revenues totalled NOK 1.6 million in 1998,NOK 2.8 million less than the previous year.

The 1998 profits of NOK 1.8 million have beenadded to retained profits.

Investments and purchases of scientific equip-ment in 1998, NOK 9.5 million and NOK 1.4million respectively, totalled NOK 10.8 million.

The annual rent-support grant from theResearch Council of Norway was cancelledas of 1998.

IKU’s share capital totals NOK 9 million; allshares are owned by SINTEF.

Salary and other compensation for thePresident, Board members and auditor areaccounted for in note 12 in the accounts.

Organization

In 1998, IKU consisted of seven scientificdepartments and a group providing adminis-trative and computer support functions.


President

AdministrativeSupport

PetroleumGeology

BasinModelling

Seismic Drilling andWell Technology

FormationPhysics

ReservoirTechnology

MultiphaseFlow Laboratory

Future Prospects

At the beginning of 1999 we are facing asituation where oil companies world-wide areundergoing the most dramatic reorganizationprocess in more than ten years. Oil priceshave fallen to a level close to USD 10 perbarrel, a level which they are expected main-

tain, or exceed only slightly, until year 2001.As a result, the volume of research anddevelopment commissioned by the petroleumindustry is expected to decrease. Therefore,the newly named SINTEF PetroleumResearch institute must adjust its R&Dvolume in each scientific area in accordancewith these prospects.

One of the principal challenges facingpetroleum research in Norway in the next fewyears, is to develop new exploration and pro-duction technologies that will allow future fielddevelopments to be profitable even if oilprices should fall below USD 10 per barrel.This is necessary for ensuring the competiti-veness of the Norwegian continental shelf. Anumber of new technologies presently underdevelopment in Norwegian R&D environments,and particularly at SINTEF PetroleumResearch, are expected to make significantcontributions towards this goal. Improved,more advanced exploration methods are re-quired for reducing the number of explorationwells, and thereby reducing exploration costs.Seabed seismics and advanced drainagemethods will be required to increase the re-covery factor in each field. Advanced well-technology, sub-sea separation and multi-phase transport over large distances, perhapsto land, are also necessary for lowering pro-duction costs. SINTEF Petroleum Researchwill focus strongly on these areas in the future.

An important condition for achieving this is that the oil industry, the supplier industriesand public authorities are willing to committhemselves to a concerted effort in this field inco-operation with research institutions. ForSINTEF Petroleum Research, it is essential tobe viewed as an attractive R&D instituteoffering solutions to challenges facing theindustry today and in the future.

Trondheim, 3 March 1999

T. Kjell Roderburg Ole Torsæter Hallvard Høydalsvik Karl A. Berteussen(chairman)

Nils Spidsøe Jofrid Klokkehaug Bjørn Sund Erik Lindeberg

Bodil Guldseth Tor Inge Waag David LysnePresident


IKU’s board of directors From left: Ole Torsæter, Erik Lindeberg, Jofrid Klokkehaug, Bjørn Sund, Grethe Schei, Bodil Guldseth, Tore Gimse, Nils Spidsøe, T. Kjell Roderburg.

Karl A. Berteussen, Hallvard Høydalsvik, and Tor Inge Waag wereabsent when the photo was taken.

Operating income (mNOK) 1998 1997

External projects 88,849 71,493

Project funding from Research Council of Norway 10,365 5,654

Basic funding from Research Council of Norway 4,744 4,500

Other income 906 10

Gross project income 104,864 81,657

- Direct project expenditure -36,690 -17,110

Net operating income 68,174 64,547

Operating expenditureWages and social expenses 42,713 40,099

Other operating expenditure 20,940 16,382

Ordinary depreciation 4,338 3,062

Total operating expenditure 67,991 59,543

Operating profit 184 5,004

Financial income and expenditureInterest 1,583 4,444

- Financial expenditure -15 -19

Net financial income 1,568 4,424

Profit before year-end adjustments 1,752 9,428

Year-end adjustments

Statutory reserve 943

Free reserve 1,752 8,485

Income statement


Commissions Distribution of grossoperating income by client

Distribution of gross operating income byproject duration

Distribution ofemployees by position

Service commissions19 %

Research81 % Research Council of Norway

14 %

Programs > 2 years32 %

Administrative staff 13 %Technicalstaff 12 %

Engineers10 %

Researcher 65 %(of whom Dr.ing. 52 %)

Programs < 2 years49 %

Short terms commissions 19 %

Industry 71 %

Public 15 %



Balance sheet

Assets (mNOK) 1998 1997Current assets

Cash, bank and post accounts 28,725 15,914

Bonds and other securities 46,751 48,412

Acc. receivable, companies within the

SINTEF Group 1,448 1,987

Accounts receivable 23,530 28,014

Other accounts receivable 528 748

Projects in progress 1,042 1,517

Total current assets 102,024 96,593

Fixed assets

Other shares 76 76

Deposits, offices/laboratories 119 119

Net pension fund 1,852 2,557

Office equipment, vehicles, inventories 263 197

Scientific equipment 6,682 1,322

Total fixed assets 8,992 4,270

Total assets 111.016 100,863

Liabilities and equityShort-term liabilities

Delivery liabilities 13,184 5,218

Liabilities, VAT, tax deductions, social security, etc. 6,975 7,289

Liabilities, companies within the SINTEF Group 2,778 631

Payment in advance 25,652 28,653

Other short-term liabilities 4,488 2,212

Total short-term liabilities 53,077 44,003

Long-term liabilities 2,513 3,185

Equity

Capital reserves

Share capital (900 shares NOK 10,000.-) 9,000 9,000

Statutory fund 4,216 4,216

13,216 13,216

Revenue reserves

Free reserves 42,211 40,459

Total equity 55,427 53,675

Total liabilities and equity 111,016 100,863


50

100

150

200

19981997199619951994

Employees Personnel cost in % of total cost

Operating profit Profit of the year Operating profit in % of net income

1994

1995

1998

1996

1997

-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

10000

Net profit/Net operating income mnok

Employee wages and social expences

65%

70%

-10

-8

-6

-4

-2

0

2

4

6

8

mnok

Em

ployees

%

60%

Administration support● Berg-Hanssen, Harald● Flo, Rune▲ Lysne, David❋ Lyng, Siri❋ Lynum, Ingunn❋ Olden, Laila S.❋ Påsche, Elin❋ Sagmo, Mette A.❋ Sneen, Marit

Petroleum Geology▲ Bøe, Reidar◆ Fossum, Berit❋ Guldseth, Bodil◆ How, Øystein◆ Johansen, Jan Helge▲ Lieng, Erik▲ Lothe, Ane▲ Mørk, Atle▲ Mørk, Mai Britt E.● Rendall, Hans◆ Rossing, Øystein T.◆ Stene, Sølvi▲ Zweigel, Janine▲ Zweigel, Peter

Basin modelling▲ Borge, Hans▲ Hamborg, Martin▲ Kjennerud, Tomas● Lind, Kristin▲ Myhr, May Britt▲ Mann, Ute▲ Ritter, Ulrich◆ Sneeggen, Cecilie▲ Sylta, Øyvind▲ Tømmerås, Are◆ Vinge, Torun▲ Weiss, Hermann M.

Seismic▲ Causse, Emmanuel❋ Espås, Ann Merete▲ Hokstad, Ketil▲ Kristoffersen, Anders▲ Maaø, Frank▲ Rommel, Bjørn▲ Sollie, Roger▲ Tjåland, Egil▲ Østmo, Svend

Multiphase Flow Laboratory▲ Borthne, Gunnar▲ Dahl, Arne Morten◆ Gustavsen, Karl G.▲ Jacobsen, Kjell Arne▲ Kristiansen, Olav

▲ Larsen, Roar◆ Larsen, Rolf Erik◆ Lervåg, Johan H.❋ Løften, Lise-Carin▲ Heggum, Geir▲ Onsrud, Gisle◆ Sørvik, Atle

Formation Physics▲ Fjær, Erling▲ Heill, Lars Ketil▲ Holt, Rune Martin❋ Knutsen, Reidun▲ Larsen, Idar● Lund, Hans▲ Nes, Olav-Magnar▲ Papamichos, Euripides▲ Ringstad, Cathrine▲ Schei, Grethe● Stavrum, Johannes▲ Sønstebø, Eyvind F.▲ Unander, Tor Erling

Drilling and Well Technology▲ Andersen, Asbjørn▲ Bang, Jon▲ Carlsen, Inge M.▲ Jenssen, Hans Peter▲ Mjaaland, Svein▲ Molnes, Einar▲ Nyhavn, Fridtjof● Sandaunet, Kurt▲ Solstad, Arne▲ Strand, Geir Ove❋ Wanvik, Hilde▲ Waag, Tor Inge● Øyangen, Terje

Reservoir Technology▲ Akervoll, Idar▲ Bergmo, Per Erik▲ Bjørkvik, Bård❋ Bjørseth, Eva Kristin● Frigård, Oddmund▲ Ghaderi, Amir▲ Holt, Torleif▲ Hustad, Odd Steve▲ Lindeberg, Erik G. B.▲ Moen, Arild● Stavseth, Arnt▲ Vassenden, Frode▲ Wessel-Berg, Dag

Employees as of 1 January 1999

Legend▲ scientist● engineer◆ technical staff❋ administrative personnel14 IKU - annual report 1998

Scientists65 %

Employees legend by %as of 1 January 1999

Technical staff12 %

Engineers 10 % Administrativepersonnel 13 %

ManagementDavid Lysne . . . . . . . . . . . . . . . . . . President

Peter Zweigel . . . . . . . . . . . . . . . . . Research Director,Petroleum Geology Department

Erling Fjær . . . . . . . . . . . . . . . . . . . Research Director,Formation Physics Department

Øyvind Sylta . . . . . . . . . . . . . . . . . . Research Director,Basin Modelling Department

Roger Sollie . . . . . . . . . . . . . . . . . . Research Director, Seismic Department

Einar M. Molnes . . . . . . . . . . . . . . . Research Director, Drilling and Well Department

Odd Steve Hustad . . . . . . . . . . . . . Research Director, Reservoir Technology Department

Kjell Arne Jacobsen . . . . . . . . . . . . Research Director, Multiphase Flow Laboratory

Board of Directors, 1999T. Kjell Roderburg, Chairman . . . . . Vice President, SINTEF

Karl Andreas Berteussen **) . . . . . . Director, PGS Reservoir AS

Anders Farestveit *) . . . . . . . . . . . . Managing Director, Schlumberger

Hallvard Høydalsvik . . . . . . . . . . . . Department Director, Saga Petroleum ASA

Erik Lindeberg . . . . . . . . . . . . . . . . Scientist, SINTEF Petroleum Research

Jofrid Klokkehaug . . . . . . . . . . . . . . Sector Manager, Statoil

Nils Spidsøe . . . . . . . . . . . . . . . . . . Research Director, SINTEF Civil and Environmental Engineering

Bjørn Sund . . . . . . . . . . . . . . . . . . . Senior Vice President, Norsk Hydro ASA

Ole Torsæter . . . . . . . . . . . . . . . . . . Professor IPT, NTNU

Bodil Guldseth . . . . . . . . . . . . . . . . Project Secretary, SINTEF Petroleum Research

Tor Inge Waag . . . . . . . . . . . . . . . . Scientist, SINTEF Petroleum Research

*) until June ‘98

**) from June ‘98


Organisation as of 1 January 1999

President

AdministrativeSupport

PetroleumGeology

BasinModelling

Seismic Drilling andWell Technology

FormationPhysics

ReservoirTechnology

MultiphaseFlow Laboratory


SINTEF GroupThe SINTEF Group performs contract research and development for industry and thepublic sector in the fields of technology and the natural and social sciences.

With 1808 employees and an annual turnover of NOK 1.5 billion, SINTEF is one ofEurope's largest independent research organizations. Contracts from the public andprivate sectors provide 92% of the operating revenue.

SINTEF operates in close collaboration with the Norwegian University of Science andTechnology (NTNU). Our experts cooperate in projects and share laboratories andequipment. Together, the two institutions form a centre of expertise of high internatio-nal standard. We also cooperate with the University of Oslo.

Our task as a general foundation is to help ensure that our expertise is used to sup-port a sustainable process of creation of value in the community. The results of SIN-TEF's work should be reflected in the competitiveness of Norwegian industry and theproductivity of the public sector.

The SINTEF Group consists of:SINTEF - Foundation for Scientific and Industrial Research at the Norwegian Instituteof Technology

SINTEF Energy Research

SINTEF Fisheries and Aquaculture

SINTEF Petroleum Research

MARINTEK - Norwegian Marine Technology Research Institute

The SINTEF foundation consists of eight research institutes:

SINTEF Applied Chemistry

SINTEF Applied Mathematics

SINTEF Civil and Environmental Engineering

SINTEF Electronics and Cybernetics

SINTEF Industrial Management

SINTEF Materials Technology

SINTEF Telecom and Informatics

SINTEF Unimed

Annual Report 1998 - SINTEF · leum industry that market conditions can change ra-pidly. In the...

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