Tore Torvund is StatoilHydro’s executive vice president for Exploration & Production Norway. With the merger of Statoil with Norsk Hydro’s oil and gas activities in 2007, Mr. Torvund took charge of the largest operator on the Norwegian Continental Shelf (NCS), with 60% of the shelf’s total production. StatoilHydro’s ambition is to create long-term profitable growth through increased international activities and renewed efforts on the NCS.
Question: How has last year’s merger affected the culture and goals of your company’s E&P operations?
Answer: The process to integrate Statoil and Hydro’s oil and gas activities started one year ago, and the merger became effective as of October 1 last year. We are proud of having established one of the world’s largest offshore E&P companies with a strong portfolio of activities with the main basis on the Norwegian Continental Shelf. Each of the two companies represents more than 30 years of offshore expertise and experience. We operate 39 fields and a total production of more than 3 million barrels a day on the NCS.
It is our ambition to build a company combining the best of these two companies with respect to both exploration and safe, efficient operations with minimal environmental effects. The integration process continues this year in our offshore activities, our land-based terminals and refineries and our offshore supply chain. We have stated clear goals to improve regularity and efficiency both when it comes to our processing facilities and when it comes to our drilling activities. Our ambition is to design and implement an organization and work processes to achieve major improvements within these parameters.
Q: Although your company is not completely responsible for domestic production, how do you see Norway’s oil and gas production trending in the next one to three years?
A: Norway’s total oil and gas production is this year at a peak level. The main reason for this is that Norwegian gas exports have reached record high levels. StatoilHydro’s ambition is to increase our NCS production from its current level of 1.4 million barrels per day to 1.55 million barrels per day in 2012. To achieve this, we have to both fight decline of our producing fields and add new production from new discoveries and developments.
Q: Norwegian production dropped by more than 9% last year, and is expected to continue to decline. What are the main technical and economic challenges to maintaining domestic production in Norway?
A: While mature fields on the NCS are in a phase of declining production, StatoilHydro aims to increase output toward 2012. We will improve the daily operations and utilize the entire potential of the NCS through new projects and increased exploration.
This year we will drill 80 production wells on the NCS and 35 exploration wells. This illustrates how we regard the potential of the NCS and the importance of efficient drilling activities to achieve our goals. As we speak, we have made five discoveries so far this year.
Q: What technologies is StatoilHydro developing to improve production, and how will these impact output?
A: Throughout our portfolio, we have achieved excellent results with respect to high oil recovery. On fields like Statfjord, Gullfaks and Oseberg, water and gas injection have brought the recovery factor. On many fields, drilling more infill wells is the main measure to improve recovery.
We have been in the forefront of developing and implementing new technology for drilling advanced multi-branched horizontal wells, together with our suppliers and service companies. The 80 new production wells to be drilled in 2008 are our main contribution to improve resource management in our portfolio.
Q: What are the latest developments with Ormen Lange and the Langeled pipeline to the UK?
A: Ormen Lange is the first real deepwater development on the NCS, bringing gas directly to shore through 120 km of pipeline. We are processing the gas onshore before transporting it through the world’s longest offshore gas pipeline-of 1,200 km-terminating in the UK. Ormen Lange gas supplied through the Langeled pipeline will cover 20% of the UK demand going forward.
Exports from Ormen Lange Field started in October of last year, and Shell, which has taken over the operatorship from StatoilHydro, is responsible for further drilling and for ramp-up of production. Ormen Lange represents an important contribution to StatoilHydro’s gas production portfolio, and this successful record-breaking development project adds to the company’s extensive technology and project track record.
Q: What important projects does StatoilHydro have upcoming?
A: On the NCS, StatoilHydro is responsible for several new development projects. One of these is Volve Field, which came onstream in February 2008. At its peak production, the StatoilHydro share is expected to be 30,000 boe/day. Other upcoming projects are Tyrihans and Alve, coming onstream in 2009 with expected peak production of 56,000 boe/day and 21,000 boe/day, respectively, and Vega/Gjøa, coming onstream in 2010 with expected peak production of 49,000 boe/day.
Q: How do you see StatoilHydro’s current and future role outside of Norway? How has the company been working to fulfill that role?
A: Joining competence and technology skills to become more competitive in the international arena is the main reason behind the creation of StatoilHydro. Based on our expertise-particularly in deepwater offshore development and production, subsea production and long-distance multiphase transportation, advanced drilling technology and heavy oil development and production-it is our strategy to increase our international activities. Our participation in the Shtokman development project and our increased interests in offshore heavy oil projects both in Peregrino Field in Brazilian waters and offshore UK are examples of this strategy paying off. 
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Tore Torvund was born in the industrial community of Årdal, in the county of Sogn og Fjordane, Norway. He earned a degree in petroleum technology from the Norwegian University of Science and Technology and began working for Hydro in 1977. He made his career in Hydro’s oil and gas business area over a period of 30 years, including four years that he worked for the French oil company Elf in Paris. His career path accelerated within Hydro’s Oseberg development project, and he attained a position as vice president of Hydro’s drilling department before becoming the head of the company’s oil and gas activities in 1995. In 2000, Mr. Torvund took charge of Hydro’s oil and gas activities, assuming the position of executive vice president in the company’s corporate executive committee. In the merger with Statoil, he was appointed the combined company’s executive vice president in charge of the StatoilHydro business area Exploration and Production Norway. Mr. Torvund is married and has two sons.
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