Frontier Energy Winter 2015

OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

www.frontierenergy.info WINTER 2015

GOLIAT

First oil from the Barents Sea in sight

DRILLING Technology New designs for new frontiers

Made in Britain

Gobbler Boats, a unique oil spill solution

Renewable Energy Can solar work in the Arctic?

ANTARCTIC RESEARCH • MATERIALS R&D • US POLICY • EVENTS

C AT SUE IS

40+ YEARS OF ARCTIC EXPERIENCE

Fugro understands the challenges of working in harsh, frontier environments. Our 40-year track record has involved a diversity of projects across the Arctic region.

Working from offices in Alaska, Canada, Norway, and Russia, we offer a comprehensive range of geotechnical, survey, and subsea services to support the full oil and gas project lifecycle.

No matter how remote the location, how extreme the conditions, or how complex the undertaking, Fugro provides the experience, expertise, and resources needed to optimise your Arctic operations.

FUGRO +1 907 561 3478 info-arctic@fugro.com www.fugro.com/arctic

VISIT US AT: ATC - Copenhagen 23-25 March 2015

CONTENTS

27

20

14

06 Winter 2015

OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

www.frontierenergy.info WINTER 2015

IN THIS ISSUE

GOLIAT

First oil from the Barents Sea in sight

Features 06 DRILLING TECHNOLOGY GustoMSC has decades of Arctic

DRILLING Technology

04 NEWS Controversial

experience. Here, Han Tiebout updates on the Dutch engineering group's latest designs for Arctic exploration

New designs for new frontiers

Made in Britain

Gobbler Boats, a unique oil spill solution

Renewable Energy Can solar work in the Arctic?

ANTARCTIC RESEARCH • MATERIALS R&D • US POLICY • EVENTS

Regulars

C AT SUE IS

On the cover The Goliat FPSO sets sail for Norway

08 MODEL BEHAVIOUR Newfoundland-based INTECSEA reports on how advanced modelling can deliver better solutions for Arctic pipelines

10 MATERIALS Odd M. Akselsen of Sintef looks at the limitations of existing materials in low temperatures and the new materials that could offer improved performance in Arctic conditions

12 NORWAY Frontier Energy looks back at the mixed results from last year's busy drilling season in the Barents Sea, and the wells, bid rounds and development work that will dominate the newsflow in 2015

14 NORWAY The team at Safetec Nordic AS look at the milestone that is Eni's Goliat development, and the safety management system devised for the first oilfield in the Barents Sea

16 ARCTIC POLICY From the latest manoeuvrings on the Arctic Council to Obama's recent moves to protect more of Alaska from the drillbit, Frontier Energy looks at the policies and politics that are shaping the Arctic

18 ARCTIC SHIPPING Leading maritime journalist Christopher Mayer looks at traffic through the Northwest Passage and Northern Sea Route in 2014, and considers the factors that may weigh on transits through the NSR in 2015

Chukchi Sea lease sale gets updated EIS; UK politicians call for Ambassador to the Arctic; new ice-breaking rescue ships named at Wismar Yards; Arctech is now 100% Russian

26 EVENTS Frontier Energy's comprehensive events listing helps you plan your calendar and highlight the key upstream, shipping, scientific and research conferences, exhibitions and events

28 INSIGHT Hydrographic support manager for Fugro, Todd Ralph, shares his insight into life working in the Arctic

20 OIL SPILL RESPONSE Frontier Energy gets the latest news from Ohmsett, the largest ice test tank in North America and a key facility in developing and testing new oil spill recovery technologies

23 OIL SPILL RESPONSE A Portsmouth-based shipbuilder has come up Cover Photo: Eni

with an innovative new boat design to clean-up oil spills in Arctic waters.

26 ANTARCTICA Frontier Energy looks back the research season and, after another dramatic rescue in thick Antarctic ice, examines the ongoing debate about America's icebreaking capability

27 RENEWABLE ENERGY James Ellsmoor looks at the potential for renewable energy in the Arctic www.frontierenergy.info WINTER 2015 01

MEET THE PIONEERS OF OFFSHORE ENGINEERING AT ARCTIC TECHNOLOGY CONFERENCE 2015

Come and say hello!

You will find us at ATC Conference & Exhibition Copenhagen 23 – 25 March 2015 Stand 419

GustoMSC is an independent, world renowned and leading design and engineering company, thanks to the vast knowledge and expertise of our dedicated professionals and our close relationships with the most influential players in the offshore energy market. We serve the offshore industry by providing best-in-class solutions for mobile offshore units.

www.gustomsc.com

EDITOR’S LETTER

FRAM* “The speed and severity of the price rout took the industry by surprise”

www.frontierenergy.info Editor Amy McLellan editor@frontierenergy.info Editor in Chief Bruce McMichael Canadian Correspondent Andrew Safer Publisher Stephen Habermel publisher@frontierenergy.info Design & Layout In The Shed www.in-theshed.co.uk © 2015 All material strictly copyright, all rights to editorial content are reserved. Reproduction without permission from the publisher is prohibited. The views expressed in Frontier Energy do not always represent those of the publishers.

Every care is taken in compiling the contents, but the publishers assume no responsibility for any damage, loss. The publisher, Renaissance Media, assumes no responsibility, or liability for unsolicited material, nor responsibility for the content of any advertisement, particularly infringements of copyrights, trademarks, intellectual property rights and patents, nor liability for misrepresentations, false or misleading statements and illustrations. These are the sole responsibility of the advertiser.

Printed in the UK. ISSN 2047-3702 Published by Renaissance Media Ltd, c/o Maynard Heady LLP, Matrix House, 12-16 Lionel Road, Canvey Island, Essex SS8 9DE. Registered in England & Wales.

Company number 5850675.

When the last issue of Frontier Energy went to press, back in November 2014, oil prices were sliding but, at around US$80 a barrel, panic had not yet set in. By December, however, the production overhang really began to tell and in January 2015 Brent hit US$45 a barrel, a six-year low. The speed and severity of the price rout took many in industry by surprise: from 2010, prices north of US$100 a barrel had become the new normality.

For oil companies that had built business models, planned budgets and tested projects against this higher price, the price drop was a shock. Suddenly capex was cut, exploration spend trimmed bare, projects shelved, workers laid off and corporate deals parked while the financial numbers were run, and re-run, against ever-lower price scenarios. Already a number of mid-size E&Ps have defaulted on debt and some service companies, always harder hit by these boom-and-bust cycles, have sought bankruptcy protection. A new wave of M&A is widely expected.

Since the lows of January, of course, there has been a remarkable recovery in the oil price, up around 30% and clinging to around US$60 a barrel. Many pundits, however, expect this rally to be short-lived - in Wall Street parlance, a dead cat bounce – as prices need to stay lower for longer to curb the glut of oil. The muchwatched Baker Hughes rig count is falling, showing that US oil producers are reacting to the sting of low prices, but there's a lag between stacking a rig and production numbers.

One thing is clear: no one knows what will happen next. Some are still predicting a further slump to around US$20 a barrel, others believe oil prices could end this year around US$75 to US$85 a barrel and a few believe that with capital spooked and rigs stacked we could yet face a painful price spike as production dries up just as weak economies start to rebound.

This volatility is unlikely to see oil companies push the button on expensive Arctic projects that will require much higher oil prices to pass economic tests. Big Oil - the only companies with the financial muscle to take on these kind of projects - have slashed billions from their spending plans while the Russian giants that have shown the most appetite in recent years for Arctic exploration have been hit by the triple whammy of low oil prices, sanctions and a flight of capital due to domestic economic turmoil.

Even so, as we report on page 4, Shell has indicated it is keen to resume Arctic drilling this summer. It is clear that decisions about the Arctic are never about simple economics: read our reports on page 16 and 17 about the policies and politics that will help shape the future of development in the Arctic.

Amy McLellan, Editor

*

Fram is not only the Norwegian word for ‘Forward’, it is also the name of the one of the first ice-strengthened and most famous polar exploration vessels of the late 1800s and early twentieth century. It was captained by Norwegian explorer, Fridtjof Nansen, a Norwegian explorer, scientist, diplomat, humanitarian and Nobel Peace Prize laureate.

Sharing his polar travel experiences with fellow adventurers and scientists, his technology innovations in equipment and clothing influenced a generation of subsequent Arctic and Antarctic expeditions. The word encapsulates what we aim to bring you with the magazine – a forward looking guide to the future of oil, gas and shipping activities in the Arctic and other ice-affected regions while keeping environmental protection and safety at the heart of operations.

Get connected!

Follow us at www.twitter.com/frontierenergy for the latest news and comment

www.frontierenergy.info WINTER 2015 03

NEWS

IN NUMBERS Statoil's new CEO Eldar Sætre has been with the oil group for 35 years

Zero summer sea ice in the Arctic before the end of this century?

Photo: USCG

60% slump in oil prices in six months from late June 2014 to January 2015

Shell's 2012 Arctic campaign saw the grounding of its rig off Alaska Arctech is an expert in icebreaker design

In response to a federal court order, the US Department of the Interior has released the Final Supplemental Environmental Impact Statement (FSEIS) for Chukchi Sea Lease Sale 193, the 2008 oil and gas lease sale off Alaska that has long been mired in legal challenges.

The original EIS for the sale was published in 2007, ahead of the 2008 sale which saw companies, including Shell, bid highly for exploration acreage. Subsequent legal challenges and federal court decisions remanded the sale back to Washington's Bureau of Ocean Energy Management's (BOEM) for further analysis and in early 2014 the Bureau of Safety and Environmental Enforcement (BSEE) suspended all of the Chukchi Sea leases issued in the sale.

The FSEIS is based on the best available data - including actual leasing records, current geological information and consultation with the public and tribal governments in Anchorage, Fairbanks and a number of Chukchi Sea communities - to estimate the highest amount of production that could reasonably result from Lease Sale 193; this is higher than in previous analyses.

The scenario used in the FSEIS assumes the development of two prospects with high case combined oil and condensate production of 4.3 billion barrels and gas of 2.2 TCF to be produced via eight Arctic-class design platforms and 589 wells over a time frame from exploration to decommissioning of 77 years.

Despite low oil prices and a US$15 billion cut in its capex plans for the next three years, Shell has signalled it is keen to resume its Arctic campaign, two years after the Kulluk drilling unit was grounded off Alaska. Speaking at the release of the company's Q4 results earlier this year, Shell boss Ben van Beurden said he would be disappointed if the company doesn't start drilling again, angering environmental campaigners.

"Shell is taking a massive risk doggedly chasing oil in the Arctic, not just with shareholder value, but with the pristine Arctic environment," said Greenpeace campaigner Charlie Kronick in a statement.

04 WINTER 2015 www.frontierenergy.info

Arctech now in Russian hands Finnish ice-breaking specialist Arctech Helsinki Shipyard is now 100% in Russian ownership after United Shipbuilding Corporation bought out its 50/50 partner STX Finland Oy. Arctech Helsinki was founded in December 2010 as a joint venture to respond to the need of the growing Arctic shipbuilding market and to unite the Finnish and Russian maritime clusters. In a statement, the company said the new ownership arrangement "is expected to further strengthen the Finnish-Russian shipbuilding cooperation".

"I am convinced that USC is committed to developing Arctech in the long-term," said Esko Mustamäki, the managing director of Arctech Helsinki Shipyard.

Aleksey Rakhmanov, the MD of state-owned USC, said the deal meant his company now has "obtained not only full access to technical documentation and the know-how but also to the people who can share this knowledge".

The parties did not disclose how much money changed hands in the deal, but Russian press reports have suggested around US$24.3 million.

Arctech is currently building six icebreaking vessels, with the first, a Baltic icebreaker for the Russian Ministry of Transport, due for delivery in Autumn 2015. The second vessel, the world´s first LNG-powered icebreaker for the Finnish Transport Agency, will be delivered in early 2016. Other orders include an icebreaking supply vessel for Sovcomflot and three icebreaking stand-by vessels with an order book that now stretches until Summer 2017.

Chevron Canada cancels Beaufort Sea drilling ambitions Chevron Canada has put its Arctic drilling plans on hold, citing economic uncertainty in the industry. In a letter to Canada's National Energy Board, the oil giant, which holds licences in the Beaufort Sea off the coast of Tuktoyaktuk in the North West Territories, announced its withdrawal from a process to get regulatory approval for its alternative solution for handling a blow out without drilling a same season relief well, a requirement that oil companies claim is not feasible in the Arctic.

Greenpeace welcomed the news, saying it was further proof that the technical challenges of drilling in icy waters push costs far too high to be viable. “This announcement is good news for Canada's Arctic and the Harper government should now recognize the instability of the oil industry and put an end to seismic testing in Baffin Bay and Davis Strait,” the campaign group said in a statement.

Photo: Arctech

Updated Chukchi Sea EIS to pave way for drilling

NEWS

90,000 bpd, expected peak production from ExxonMobil Corp's Arkutun-Dagi field offshore Sakhalin

60 days The time to transport the Goliat FPSO from South Korea to Norway

Brent crude was

US$60 a barrel at the end of February

Obama warned his plans for Alaska could leave up to

US$1.1 trillion worth of extractible natural resources underground.

Lundin Petroleum plans

4

exploration & appraisal wells in the Barents Sea in

2015

Potential

600%

ExxonMobil tallies cost of sanctions compliance as

2025

In Brief

The UK, the northernmost country below the Arctic Circle, needs to up its game or risk being “outmanoeuvred” in the region by other states, according to a new report from the House of Lords Arctic Committee. The Committee, which said it is a question of “when” not “if” the Arctic will be substantially ice-free in the summer, said that while the UK has a long and successful history of engagement with the Arctic, in recent years its approach has been “too hesitant and cautious”. It calls for the nation to follow the example of France, Singapore and Japan in appointing an Ambassador for the Arctic.

“The Arctic is changing in front of our eyes,” said Lord Teverson, Chairman of the Committee, adding that the UK should be

ABB: record Arctic business

“positioned as the premier partner for Arctic states and other interests in Arctic cooperation as that change happens”.

The Committee’s report, Responding to a changing Arctic, also calls for a moratorium on fishing in the higher seas area of the central Arctic Ocean until a recognised management regime for the area is agreed. It recommends that the UK Government plays an active role, ensuring that a management regime is based on sound science to prevent the risk of overfishing in these previously inaccessible waters.

The report also considers whether oil and gas extraction can be done safely and responsibly in ice-affected Arctic waters, and what international standards on where drilling can be undertaken in relation to sea ice can be agreed.

region and the Murman in the North-East Passage around Murmansk.

The ships can handle medical treatment in their onboard hospital, emergency towing in extreme weather conditions, fire-fighting and oil spill clean-up. In harbours or open water they can break through ice with a thickness of one meter.

15,000

Office of Naval Research, Bloomberg, POLARISK Group, The International Council on Clean Transportation, Shell, Statoil

Senior politicians call for UK Arctic Ambassador

February saw Nordic Yards in Wismar host the naming ceremony for two new ice-breaking rescue and salvage vessels, built over 17 months for Rosmorrechflot. The Beringov Proliv and Murman were described by Nordic Yards chief Vitaly Yusufov as “two of the world's most modern and specialised rescue vessels”. The Russian Ministry of Transport placed the €150 million order for the two multipurpose rescue and salvage vessels in December 2012. Each vessel is 88 m in length, nearly 19 m wide and can accommodate a crew of up to 38. From springtime onwards they will be used by Russia's maritime rescue services for patrols and rescue operations in the Arctic, with the Beringov Proliv operating in the Sakhalin

Building Alaska LNG

will create cut in spending increase in over the next emissions from jobs three years US$1 billion marine vessels in US High Arctic in Sources: Alaska LNG, ENI Norge, ExxonMobil, Lundin Petroleum,

Nordic Yards names new icebreaking rescue ships

Photo: Nordic Yards

Shell plans

US$15 billion

ABB reports record levels of new orders for the marine part of its business, driven by solid growth in demand for electrical propulsion systems especially in the cruise and ice-going segments.

In 2014, the company won orders worth US$900 million to deliver solutions to icegoing and icebreaking projects.

Rosneft seeks Arctic extensions Russian oil giant Rosneft is seeking extensions on its Arctic licences, where last year it made a major oil discovery in the Kara Sea. The company's plans have been hit by sanctions, which mean its Western partners, including its Kara Sea JV with ExxonMobil, have withdrawn.

Statoil drills in Atlantic Canada Statoil plans to drill five or six wells on its licences offshore Eastern Canada over the next 15 months.

The company will focus much of its effort on the acreage near its large Bay du Nord oil strike off Newfoundland & Labrador.

Novatek taps wealth fund Russia has granted almost US$2.5 billion from its National Wealth Fund to support Novatek's Yamal LNG project in the Arctic Yamal Peninsula. Yamal LNG is an ambitious energy project, with projected annual peak capacity to produce 16.5 million tpa of LNG, which will be shipped from the remote Arctic region via a fleet of ice-class LNG carriers.

Denmark claims the North Pole

The Nordic Yards-built ships are heading to Russia

Denmark has laid claim to the North Pole, with a recent submission to the UN claiming a total of 895,000 sq km of ocean floor in the Arctic Ocean, far more than expected. Copenhagen claims the area surrounding the North Pole is connected to the continental shelf of Greenland, a Danish autonomous territory, via the Lomonosov Ridge, a 1,120 mile underwater mountain range.

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Benefits • Exclusive news • Events calendar • Targeted audience

DRILLING TECHNOLOGY

The NanuQ5000 is suitable for year round operations with ice management

HEADING NORTH:

Arctic-ready drillships and jack-ups The glut of shale oil has helped mask the fact that the era of easy oil is over, which is why the Arctic remains an exploration destination for the future. In the run up to ATC 2015, Han Tiebout of Dutch design and engineering group GustoMSC looks at some of the drilling technologies that make it possible to explore in the Arctic

06 WINTER 2015 www.frontierenergy.info

(Denmark) and Norway have had various degrees of progress. But the most recently advanced is Russia, with its successful Pobeda discovery well in the Kara Sea, significant exploration in the Pechora Sea and the development of the Yamal LNG project with support from China.

In view of the special conditions and unique challenges of Arctic exploration, the industry is developing its technical capabilities to make sure that in the near future the decline of global oil and gas production will be offset by production in the Arctic. The Arctic Technology Conference 2015 allows specialists in all disciplines to collaborate to make this happen.

ATC: a platform for collaboration This year the fourth Arctic Technology Conference (ATC) is being held in Copenhagen, Denmark. It is the event's first time in Europe after three very successful editions in Houston. In spite of current oil prices and political challenges, the Arctic remains this century’s development opportunity. Supported through OTC’s network of renowned scientific and professional societies, ATC provides a worldwide platform for collaboration with

industry colleagues, vendors and academia about challenges and solutions for the Arctic regions.

ATC 2015 will present a highly specialized program that includes technical

The rapid heating and cooling cycles in welding mean the initial base metal properties deteriorate presentations on topics under Geology and Geophysics, Exploration and Production, Physical Environment, Logistics and Regulatory Environment and Social Responsibility themes. This three-day conference includes panel sessions focusing on Global Arctic Market Outlook, Arctic Technology, Regulatory Issues, Arctic Metocean, and Ice Forecasting and Routing Optimization. In addition to the technical talks and posters, the Plenary and topical sessions will offer insight from industry leaders into Arctic themes. The exhibition hall will show numerous examples of Arctic-focused technologies and services.

Photos: GustoMSC

I

n recent years shale oil has come to the market to offset a decline in worldwide oil production. The nonshale production of oil has fallen by roughly 1 million barrels during the last decade. On top of that it has been observed that during the last 4 years the volume of new oil and gas discoveries have been diminishing. It just exemplifies that the era of ‘easy oil’ is over. The world needs new initiatives to find new oil reserves in order to support the improvement in economic and social wellbeing desired by so many countries around the globe.

The Arctic is the last frontier to develop new initiatives for oil and gas exploration .

As published many times before, the United States Geological Survey believes that the area above the Arctic Circle holds 90 billion barrels of undiscovered, technically recoverable oil and 1,670 trillion cubic feet of technically recoverable natural gas. So the potential is there for 13% of the undiscovered oil and 30% of the undiscovered natural gas in the world.

As a result, all Arctic nations are progressing their positions. In the US, all eyes are on Alaska where as well as onshore drilling, we may see offshore drilling again this Summer. Canada, Greenland

DRILLING TECHNOLOGY

round operations in the Arctic (supported by ice management), in waters down to The SEA 15000 ICE can drill in severe ice conditions 5,000 ft. With a 15,000 mt or higher variable load, the Decades of Arctic experience vessel has a high autonomy when working in remote Arctic areas. The vessel can Ever since the 1970s, GustoMSC has be either turret moored or dynamically specialized in designing and building positioned and has a high ice class, mobile units (vessels, jack-ups and semiallowing the vessel to operate in and submersibles) for the offshore industry. transit through all Arctic areas.

Some of those units were designed to The vessel is fully winterized, with all operate in harsh environments and cold working areas entirely enclosed to protect climates. Inevitably, as industry moved into crew and equipment, with the moonpool the Arctic, this meant a natural evolution protected by for the company the vessel’s hull. to meet industry Thorough attention demand for units The NanuQ 5000 drillship has been given to designed and built is suitable for year-round on-board logistics specifically for and mechanical operations in the Arctic, this environment. handling inside GustoMSC's Arctic supported by ice management the enclosed experience includes working areas. in-house R&D, A full range of participation in environmental protection measures, various joint industry projects and working reducing both emissions and discharges, is directly with clients. being implemented GustoMSC, for example, worked on a derivative of the successful ‘Pelican’ class DP in the design to protect the Arctic drillships, the Canmar Explorer III, which environment. The drilled in the Chukchi Sea and Beaufort Sea vessel is intended for numerous operators such as Amoco, for operational Chevron, Dome Petroleum, Esso and Shell. conditions with ice In the 1980s, the company designed management. and supplies a series of drillships (Valentin With the Arctic Shashin, Viktor Muravlenko and Mikhail cantilever jackMirchink), jack-ups (Kolskaya and up SEA 15000 Sakhalinskaya) and offshore crane barges ICE, it's possible (Titan -1, -2,-3,-4 catamaran crane vessels to undertake and the Stanislav Yudin crane vessel) exploration drilling for the USSR Ministry of Gas. The units in severe ice were designed to operate in temperatures conditions in waters down to minus 40 degrees Celsius. The down to 50 metres. construction used special materials that The main structural allow safe operation in these weather conditions. Upon delivery from the yards in components of Finland the units were certified by the USSR the design are the drilling jack-up hull, Register of Shipping. legs and the drilling The most recent Arctic project for the caisson. The jackexploration market was the Bully drillship up is a winterized project. Extensive ice tank studies were cantilever drilling performed as part of the design process. unit with large The Bully drillships came into service a few diametre steel years ago, starting to drill for Shell. circular legs. Unlike the more common Recent Arctic developments lattice structure legs, The experience gained since the the circular legs can early 1970s has been of benefit for resist the high local the more recent offshore Arctic design ice load. The hull is developments. This includes the NanuQ designed to resist ice 5000 drillship, which is suitable for yearloading during tow,

Circular legs can resist the high local ice load

which enables the unit to move to and off location in icy conditions. The retractable drilling caisson is to protect the drill string from ice loads. The jack-up is intended for operations in ice conditions up to a specified maximum thickness. www.gustomsc.com

GustoMSC will be at Booth 419 at ATC

ARCTIC PIPELINES

Model behaviour INTECSEA is an expert at working on Arctic projects

Operating in an Arctic environment can bring challenges related to remoteness, unique environmental loading conditions and potential government restrictions.

As such there is generally a requirement for pipelines to be trenched and buried – often to depths greater than normally required for pipelines in more temperate climates. These loading conditions include seabed gouging from icebergs and ice ridges, strudel scouring, upheaval buckling, and permafrost thaw settlement.

It is these challenges, and many more associated with harsh environments, that bring rise to innovation and must be considered throughout the design process.

Economics and the evolving marketplace also dictate designs that become feasible for various fields. Some lines of thought are that the Arctic will be driven by subsea projects and infrastructure. This may range from building upon the successes of existing offshore Arctic pipelines connected to platforms, to the development of a standalone subsea factory. The potential for a reduction in conservatism by creating improved analytical methods may lead to more technically and economically feasible solutions for Arctic operations.

INTECSEA, which has engineered all three pipeline systems currently operational in the US Beaufort Sea using innovative design approaches, is at the forefront of design and optimization of subsea Arctic pipelines. Evaluation of unique environmental loading conditions and use of a limit state design philosophy were used successfully by INTECSEA in these and other Arctic (and sub-Arctic) pipeline systems currently under development.

The three operational pipeline projects BP Northstar, Pioneer Oooguruk and ENI Nikaitchuq- provide a significant experience base for designing installing and operating future offshore Arctic pipeline projects.

Due to construction constraints in the Arctic, systems with multiple pipelines have been bundled together before being installed 08 WINTER 2015 www.frontierenergy.info

in a trench. In the past, these bundles have been modelled as separate pipelines or equivalent pipelines to represent the bundle, but recent designs have involved analysing the system as a whole including the combined weights and stiffness of the individual pipes and assessing the pipe-soil interactions of the bundle as a whole. The updated design tools developed

by INTECSEA allow for modelling the bundled system as a whole while still allowing for the stresses and strains in the individual pipes to be assessed.

More understanding of ice gouging events... can lead to more realistic and less conservative results which could have large reductions in project cost

Efficient input scripts allow for quick manipulation of the design parameters in order to perform sensitivity cases.

The bundle can be easily manipulated to increase or decrease the number of pipelines in the system or to change the orientation of the system. This is especially beneficial in the concept selection stage of projects where multiple options may be quickly assessed to determine which options should be carried forward to future stages of design.

The models can be set up for each unique Arctic environmental loading condition for a complete solution. These modelling techniques may also be used for flowlines connecting subsea systems and equipment that may be present in Arctic environments.

Traditional decoupled ice-soil-pipe interaction finite element analysis models are being extended into three-dimensional coupled ice-soil-pipe interaction. This is occurring through the use of advanced

Coupled Eulerian Lagrangian (CEL) modelling techniques available in ABAQUS which can capture the soil behaviour more accurately.

INTECSEA has developed in-house subroutines for the CEL Advanced Constitutive soil models that more realistically simulate the soil behaviour based on critical state soil theory. These models can address dilation issues and hardening/ softening behaviour of the soil which results in more accurate estimation of sub-gouge deformations under gouge loads. INTECSEA is also involved in a Joint Industry Project to further the basis of knowledge through largescale ice-soil-pipe experiments to further validate FEA model results.

The CEL continuum finite element (FE) models can address shortcomings in other simplified models such as directional decoupling of soil resistance, slice-toslice decoupling of soil resistance and superposition of the ice load and pipe loads to soil result in conservative designs.

In addition, these models can provide more understanding from ice gouging events such as soil failure mechanisms, nonuniform stress fields in the soils, pipeline cross-section ovalization, wrinkling and local buckling. This can lead to more realistic and less conservative results which could have large reductions in project cost.

Development of more accurate models and analyses methods can support the decisions necessary during various design stages of a project. This potentially more accurate representation of the behaviour of the environmental or operational loading on the pipeline or flowline system may allow for appropriately designed solutions, reducing potential conservatism. Advanced computational models do not, however, reduce the need or benefit of physical data and surveys for location specific verification and validation. This includes geotechnical data and possibly yearly ice related data to better understand conditions for each of these unique Arctic environments.

Photo: BP

Pipelines, like all Arctic hardware, face unique challenges in ice-affected regions. Mike Paulin, operations director, Canada, for St John's Newfoundland-based INTECSEA, which engineered all three pipeline systems currently operational in the US Beaufort Sea, reports on how advanced modelling can help develop economically-feasible solutions for Arctic operations

VIKING-OFFSHOre.COM

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At heAr more 1 # 601 otC, booth

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VIKING LIFe-SAVING equIPMeNT - Protecting people and business

MATERIALS

The Arctic presents the most severe conditions for offshore structures

STAYING STRONG AT -50°C Current materials may prove to be a limiting factor in the exploration of oil and gas in the Arctic, with structural steels and polymers undergoing a ductile to brittle transition when the temperature falls to -30 to -50°C. Odd M. Akselsen, senior scientist at Trondheim-based SINTEF Materials and Chemistry, reports on the materials capable of handling ultra-cold temperatures

The author in Arctic kit

10 WINTER 2015 www.frontierenergy.info

Photos: Gazprom Neft / Erik Stiklestad

T

he Arctic is a challenging minimum operating temperatures must environment. Temperature be carefully considered and material measurements carried out specialists must inevitably be cautious due on places with typical marine Arctic to the imminent risk of brittle fracture environments, such as Bjørnøya (74.3°N), (carbon and low alloy steel) or glassy Jan Mayen (70.5°N) and Hopen (76°N), behaviour (polymers) caused by the low imply that the minimum day temperature temperature. in the last 100 years may fall to -40°C. In addition to low temperature, This happens only if sea ice encompasses structures in the Arctic may be subjected or is close to these stations. At open sea to additional loads due to icing, large in the Arctic, and temperature at distances less variations between than 100-200 summer and winter, The rapid heating and km from the ice potentially large cooling cycles in welding border or from deformations that mean the initial base metal the mainland, may be imposed temperatures on pipelines and properties deteriorate can be expected structures due to reach -30°C to frost heave, under special cold air outbreaks. thaw settlement, or iceberg scour, Due to limited meteorological data harsh weather, poor light conditions, and field experience in the Arctic/Barents long transportation distances, and Sea, it will take several years until the possibly short periods for installation uncertainty in Met-ocean data have and maintenance work. The sensitive been reduced to the same level as in the environment may render emissions from North Sea. Because of this uncertainty, the operation and large operational “footall estimates of sea ice coverage and prints” unacceptable.

MATERIALS

A beautiful but challenging environment

Recent Arctic discoveries The Arctic areas have received increased attention in recent years due to the discovery of oil and gas reserves. In Norway, the Snøhvit field (71.5°N) is in operation and Goliat (71.2°N) is under construction. Johan Castberg (72.5°N) is at the planning stage and resources have been confirmed further north, in the Wisting Central/Hoop area (73.5°N) of the Barents Sea while last year Lundin Petroleum discovered substantial resources at the Alta field (72°N) not far from Snøhvit and Goliat, adding to its previous find at Gohta only 35 km north of Snøhvit. Both fields are said to contain much larger reserves than Goliat. Further east, in the new areas along the Russian border, prospects are being identified for future activity in the coming years.

In eastern Canada basins, the physical environment is severe, and while great strides have been made in coping with the environment, the cost of doing so is becoming increasingly onerous. There is a growing sense of the cost, risk, and time that will be involved in developing these resources. The vast reserves of oil in the tar sands of western Canada provide a competitive ceiling that may limit the future development in the East Coast and Arctic basins of Canada. In both western Canada and US (Alaska), the Beaufort Sea has been explored for several decades in the MacKenzie River Delta-Beaufort Sea and Prudhoe Bay. Artificial offshore islands were constructed by either dredging the local sea bottom or buildingup an island. These artificial islands were constructed in shallow waters, most located in the landfast ice zone.

More recently, the Chukchi Sea west of the Beaufort Sea has been estimated to contain more hydrocarbons than the Prudhoe Bay, but there has not yet been any development. Deep water drilling has not taken place and the conditions, particularly for ice, are really severe so operations are only possible for around four months of the year, although that can vary dramatically from year to year.

In Russia, Rosneft has made a major oil and gas discovery in the Arctic Kara Sea following the drilling of the

northernmost well in the world in the East-Prinovozemelsky. Previously, huge attention was paid to Shtokman, which is the largest offshore gas field and is located in the Barents Sea west of Novaja Semlja. However, there has not yet been any development of the field due to severe Arctic conditions.

Steels Today there exist steel qualities, such as 9% Ni steel, that can operate down to very low temperatures (below -150°C) while maintaining good toughness.

However, the costs of such materials are so high that they efficiently prohibit the large scale application necessary for oil and gas field development in Arctic regions. Structural carbon and low alloy steels with yield stress of 420-500 MPa are today qualified for design temperatures down to about -40°C. At design temperature down to -60°C this limitation could be the real challenge for costeffective development in Arctic regions.

High strength structural steels with yield stress of 500 to 550 MPa and beyond are candidates for the development of lighter structures, but these are probably not applicable due to lack of toughness.

In fact, conventional steels of 350-420 MPa yield strength may also struggle to satisfy expected requirements because of insufficient toughness after welding.

Steels supplied as plates are subjected to fabrication welding, which is the only alternative for production of heavy structures. Following the rapid heating and cooling cycles in welding, the initial base metal properties are deteriorated.

For castings and forgings, the challenges are very severe since the initial properties are not as good as thermomechanically processed steel plates.

Polymers Polymers are applied in thermal insulation, soft seals, liners and sheaths (internal liners in pipelines, flexible risers and umbilicals), passive fire protection, other elastomeric applications (topside flexible joints, elastomeric bearings,

hoses, pipes, electrical cables, bellows, gaskets) and corrosion protective coatings. They are used in both topsides and subsea installations. Rubbers were recently developed with low temperature tensile properties (–60°C) comparable to those measured at room temperature.

Low temperature mechanical properties of plastic materials have also been documented, and they tend to get stronger and more brittle at -60 °C as compared to room temperature. Since many of the installations are designed for lifetime of 20-30 years, the influence of ageing will be of primary concern. Recently, it has

Even quite brittle adhesives have been shown to perform well at extremely low temperatures been shown that ageing deteriorates the low temperature mechanical properties which means that further materials development will have to be addressed to avoid costly maintenance and repairs.

Light weight solutions Fibre reinforced polymers (FRP) can safely be used in an Arctic environment in equipment where it is already used offshore today – such as piping, pressure vessels, storage tanks, grating, railing and similar components, protection structures, topside and subsea - provided that the necessary material qualification activities are carried out. Recent finding have shown that the static properties of "marine composite" materials are not adversely affected by low temperatures.

However, the fatigue properties should be subject to more attention.

Surprisingly, even quite brittle adhesives have been shown to perform well at extremely low temperatures.

Aluminium is a clear metal candidate when low weight is of primary concern. Aluminium alloys do not undergo a ductile to brittle transition when the temperature falls below zero. The remaining challenge is the material softening caused by welding.

Development of new joining techniques for aluminium alloys, preferably solid state joining, would raise the interest for use of aluminium alloys in structures. www.sintef.no www.frontierenergy.info WINTER 2015 11

NORWAY: BARENTS SEA

Johan Castberg still on ice

The cylindrical FPSO is en route to Hammerfest

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015 will mark a milestone in Norway's ambitions to develop the resources of the Barents Sea. Fifteen years after its discovery and the Eni-operated Goliat oilfield is readying to come onstream, the first oilfield in the Barents Sea to start commercial production and the world's most northerly offshore development at a cost of NOK30 billion (US$3.9 billion).

That this takes place against a backdrop of low oil prices makes it particularly poignant as, even when prices

Sweden's Lundin Petroleum is particularly gung-ho following the success of last year's Alta discovery in the Loppa High area, close to its 2013 Gohta discovery were more than double the level they are now, the decision whether to develop a second oilfield, Statoil's Johan Castberg field, was stalled because the economics didn't stack up. It hasn't helped that a flurry of drilling activity in 2013/14 in the waters near Johan Castberg failed to deliver the additional reserves that could have greenlit the project. With oil prices clinging on to US$60, Statoil has pushed a “decision to continue” out to H2 2016.

Goliat, however, is powering ahead. At the time of writing, the giant cylindrical FPSO, designed by Norway's Sevan Marine, was on its long voyage from the Hyundai Heavy Industries Yard in South Korea, with the Dockwise Vanguard, the world's largest heavy lift vessel, making the long transit to Hammerfest in northern Norway. Lying in the path of the Gulf Stream, the field is less exposed to harsh weather conditions than other 12 WINTER 2015 www.frontierenergy.info

locations in the Barents Sea which reduces the icing risk with the platform designed to withstand temperatures of -18ºC degrees – positively benign compared to some Arctic regions – and its circular design is well suited to the challenge from sea spray.

Eni is keen to point out the investment and jobs bonanza that Goliat has brought to this remote region: many Norwegian companies have benefited from the investment, winning contracts worth tens of billions of NOK. “In order to get local businesses involved, the company has organized operations and maintenance contract packages into a series of small supply and service agreements,” says the company.

“This has resulted in a considerable expansion of the local industrial base.”

Major oil services companies have established themselves in Hammerfest and Eni Norge has about 60 people working in its own operations organisation in the town with an additional 120 to 140 personnel working on the Goliat platform.

Annual operations and maintenance contracts for the field are estimated to be worth around NOK1.5 billion.

What next in the Barents?

Johan Castberg, the 2011-12 discovery of between 400 and 650 million barrels of oil, has been iced until H2 2016 while Statoil and other operators Eni, Lundin and OMV study alternative oil infrastructure in the region, including an onshore terminal to support multiple fields.

Other operators are following up their own discoveries, with Sweden's Lundin Petroleum particularly gung-ho following the success of last year's Alta discovery in the Loppa High area of the Barents, close to its 2013 Gohta discovery. The company will drill four wells here in 2015, two of which will appraise Alta

Goliat in numbers

Discovered in 2000 Recoverable reserves 178 million boe Cost NOK30 billion Production capacity 100,000 bpd Storage capacity 1 million barrels Weight 64,000 tonnes Height 75 metres 14 anchor lines 22 wells 8 subsea templates Field life 15 years

along with two wildcats targeting the Neiden and Ørnen prospects in PL609 and PL708 respectively.

Austria's OMV has also made some interesting finds in the Barents, last year adding more volumes near its Wisting Central oil discovery in the northern Hoop area. The 2014 well targeting the Hanssen prospect was 7 km northwest of Wisting Central and added around 20-50 million boe to the discovered resources in this promising frontier area.

Norway is keen to see more exploration in the Barents. In January, the Ministry of Petroleum and Energy opened the longanticipated 23rd licensing round, which opened up 54 blocks in a previously undrilled area of the south-east Barents Sea. A year ago, when oil prices were double current levels, 40 companies nominated 160 blocks or part blocks for inclusion in the round This could open up a new petroleum province in the Barents Sea. The application deadline is December 2nd 2015 with licence awards expected in H1 2016. It remains to be seen how recent oil price volatility will impact appetite for this frontier acreage.

Photo: Eni Norge

Last year saw a flurry of drilling activity in the Barents Sea with Lundin and OMV adding to their reserves base. But Statoil's high profile Johan Castberg discovery remains on the drawing board. Amy McLellan reports

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NORWAY: GOLIAT

Harsh environment: the Barents Sea isn't affected by ice floes but it's still a harsh operating environment

CHARTING RISK

FOR BARENTS SEA PRODUCTION

T

here are notable differences between Arctic conditions in Atlantic Canada and the Barents Sea in Norway’s ‘High North’ area that will affect the future development of offshore and energy resources. According to the Norwegian Polar Institute, the Barents Sea has deep, sedimentary-rich trenches and an average shallow water depth of 230 metres.

It extends from the deep Norwegian Sea in the west, which reaches a depth of 2,500 metres, to the coast of Novaya Zemlya in the east, and from the Norwegian and Russian coasts in the south to about 80º N. Compared to the ice-infested waters offshore Newfoundland and Labrador, the Barents Sea receives a supply of warm Atlantic water from the west that minimises ice floes, distinguishing it from other Arctic seas at a similar latitude. Although subzero temperatures characterize the Barents Sea as a harsh environment, the ice-free shelf provides relatively easier access for most of the year.

As Norway and the world search for new oil resources, variations in operational conditions across the world’s northernmost regions create unique challenges that will require collaboration, technical guidance, and shared best practices among industry, governmental and regulatory entities, and classification societies to name a few.

Industry’s first oil and gas developments in frontier areas also require assistance from independent safety and risk management advisors to understand the full risk picture and confirm that the most rigorous standards are being considered.

14 WINTER 2015 www.frontierenergy.info

Safety and risk factors Norway’s oil industry has explored the Barents Sea since 1980. A pioneer in Barents Sea exploration, Statoil has demarcated the Arctic into three areas with different operational conditions: the workable Arctic, where activity is possible with current technology; the stretch Arctic, where innovation and technology development is necessary; and the extreme Arctic, where radical technology development is necessary.

Factors influencing the design and operation of offshore assets in Arctic environments include:

Polar lows and extreme icing Long distances/remote location Low satellite coverage and poor communication Darkness for long durations throughout the year Demanding Search and Rescue (SAR) Fog and low visibility during summer and near the ice edge Ice and icebergs Sensitivity to a vulnerable environment creates a focus on how to avoid damaging emissions and discharges

The factors listed will in some cases represent a considerable extra strain on installation, equipment and outdoor operations. This will affect operations in arctic and harsh environments with regard to structural integrity, drilling, maintenance, and preserving other safety critical functions.

Reliability also will be crucial.

Installations and drilling rigs operating under arctic conditions will need a certain level of winterization for safety and optimal operating conditions, which in turn relates to the reliability of equipment.

It is clear that for the Norwegian Continental Shelf there is a need to gain more experience and technological development before the industry is ready to enter the stretch and extreme Arctic while maintaining the same risk level as in the North Sea and the rest of the shelf.

The first challenge is solving the distance to shore when mobilizing further east and north. This is critical in an emergency situation where pickup time and survival are key. The greatest challenges will be safe evacuation, survival at sea or on the ice, and oil spill recovery in ice.

These challenges have many solutions but many have never been fully tested or proven adequate. When operating in these challenging areas, proper performance of systems is vital and proper barrier management is critical for safety performance.

For harsh environment operations, it is imperative to track and monitor the risks at the earliest stage, through the operational

Photos: Shutterstock / ABS

As the first oil development in the Barents Sea approaches first oil, Ole Magnus Nyheim of Safetec Nordic AS, an ABS Group company, discusses how proactive risk management and integrated barrier management can minimise risk in this environmentally sensitive area

NORWAY: GOLIAT

Map of Goliat

phase, and to decommissioning. This can be done through barrier management analysis to track risks and assess performance to deliver safer operations and optimal production, particularly as the Barents Sea’s first FPSO moves on location and prepares for installation in the first half of 2015.

First Barents Sea installation Goliat will set a new precedent in northern Norway operations, opening a new area for development in the Barents Sea that is estimated to contain approximately 174 million barrels of oil and 8 billion standard cubic metres of gas. Discovered in 2000, the field will be the Barents Sea’s first oil producer (and Norway’s northernmost oil field) to come on stream, incorporating several technical innovations and a barrier management strategy designed to protect personnel, the asset, and the marine environment.

The Goliat FPSO will be the first cylindrical, floating production platform on the Norwegian Continental Shelf, and it is equipped to withstand extreme cold conditions (temperatures of minus 18 degrees) such as heavy sleet and snow squalls, icing, and several months of complete darkness as the unit processes, stores, and offloads oil and gas.

Eni Norge AS is operator of the field with 65%. Statoil owns the remaining 35%. Anticipated to start production in mid-2015, Goliat is expected to produce 170 million barrels of oil during a production lifetime of 15 years.

Data provided by the Norwegian Meteorological Institute, the Norwegian University of Science and Technology, and Saipem show that Goliat is less exposed to harsh weather conditions than it might have been at many other locations in the Barents Sea because the field lies in the path of the Gulf Stream. As a result, the installation will not be subject to major icing risk resulting from fog and rain. It is also unlikely that the FPSO will encounter icing problems as a result of sea spray given its cylindrical shape, which is designed to handle ice loads.

For the Goliat FPSO, many of the issues identified as Arctic safety and risk factors will only affect the operation to a certain extent because the Barents Sea has a low risk of sea ice, the distance to shore is

short, and icing will not pose a major threat. However, the southwest area of the Barents Sea will present a challenge due to its extreme weather conditions.

This risk factor has been taken into account and will be incorporated into the Goliat project’s operational procedures.

In addition, all identified risks have been integrated into a comprehensive plan to manage the technical, operational, and organisational barriers of the Goliat FPSO, including oil spill contingency strategies. HSE evaluations and risk assessments will also be performed continuously as an integral part of the project’s operations.

Barrier management strategy Eni Norge contacted Safetec to provide a highly advanced level of risk management services for the Goliat FPSO based on its safety advisors’ integrated approach to technical, human, and organisational aspects within risk, reliability, and emergency preparedness. Safetec is assisting the operator with developing a system for integrated barrier management for the Barents Sea installation by • Establishing an in-service safety and barrier strategy; • Identifying specific performance requirements for the identified barriers; • Identifying actions required to verify and maintain performance of barriers, controls, and inherent design solutions; • Supporting development of a Barrier Management Panel for monitoring and visualization of barrier performance; and • Developing training materials/ programs on risk, safety, and barriers.

The in-service safety and barrier strategy is a continuation and extension of the fire and explosion strategy (FES) and evacuation, escape, and rescue strategy (EERS) established through the Goliat development project. This is implemented to verify plant integrity during all life cycle phases and comply with PSA Norway’s expectations in terms of safe operation. This safety and barrier strategy involves charting, verifying, and managing barriers to create a high level of safety and follow-up of safety critical barriers during the FPSO’s operation.

For the Goliat floating production

Goliat: the FPSO was built in South Korea

unit, the safety and barrier strategy being implemented specifies the recommended barrier functions, which should prevent and/or mitigate major accident risk in all main areas and the entire facility.

The FPSO's cylindrical shape is designed to handle ice loads As part of the work scope, all barrier functions are documented down to the barrier element level, which might be technical, operational, or organizational.

Performance requirements for all barrier elements are established and will be evaluated and verified throughout the entire lifetime of the floating facility.

Barrier management in operation includes all activities carried out for safe operation and is based on verifying the performance of all barriers on a regular basis.

Verification activities and intervals are set based on the properties and criticality of each barrier element, and the verification is evaluated against the performance requirements set in the project phase.

The output from verification activities will be monitored and followed up systematically through a Barrier Management Panel that displays the status of all barriers implemented to mitigate risk on the facility. This Barrier Management Panel extracts “live” information about all barrier elements from several data sources, including the safety and automation system (SAS) of the facility. As a proactive measure, information obtained from the Barrier Management Panel can be used in operational risk management and decision-making. For example, all significant non-conformities in barrier performance can be evaluated in terms of consequences for operational decisionmaking and/or initiation of improvements or modifications.

The proactive management of barrier integrity and visualization of operational risk using the Barrier Management Panel presents the next generation of major accident risk management for the industry to meet the challenges of harsh environment operations. www.frontierenergy.info WINTER 2015 15

ARCTIC POLICY

ARCTIC COUNCIL 2015-2017: Inclusive or Exclusive?

As chairmanship of the Arctic Council rotates to the US, Mikå Mered, managing partner of POLARISK Group in London, examines the wider implications for Arctic relations and policy

of the Nordic Defence Cooperation (NORDEFCO), sees itself as a “near-Arctic country” policy-wise and defence-wise.

At the same time, Turkey and the European Union still await for full observer status. Regarding the EU, neither Canada nor Russia are ready to grant such status at the next Iqaluit ministerial meeting this April.

Washington is assessing the opportunity to launch a closed-door brainstorming process aimed at rethinking the observer status Therefore, the problem is easy to spot. With already 12 observers, two ad-hoc observers and at least seven new candidates to possibly welcome as observers, the member-states and permanent participants might be outnumbered. That is the reason why Washington D.C. is currently assessing the opportunity to launch a closed-door brainstorming process between the 14 founding members aimed at rethinking the observer status. The discussion may be launched as soon as this summer and may focus on the following points:

Senior Arctic Officials met in March ahead of the ministerial meeting

16 WINTER 2015 www.frontierenergy.info

• Should the Arctic Council set a formal limit to the number of states granted observer status?

• Should the AC set up formal criteria to evaluate the existing observers’ performance and engagement with the Council?

• Should the AC widen the statutory gap between ad-hoc observers and permanent observers?

• Should the AC expel observers, or at least, put some unsatisfactory observers in probation?

How will D.C. policymakers (re)define the role that both the US and the Arctic Council should play in the Arctic? For non-Arctic and near-Arctic stakeholders alike, much depends on America’s ability to exert credible and long-lasting leadership within the AC framework, and how other Council members will respond.

Said differently, during the coming two years, we will know if the US is ready to drive the change in the Arctic or whether they will keep playing a waiting game similar to that of 1998-2000. Regardless of America’s attitude vis-à-vis the Council, a new Arctic order will emerge during the US’s chairmanship and such order is likely to remain the same until the US assume the chairmanship once again between 2031 and 2033. In that perspective, the observers question — whether the US and other AC members will choose to make the AC more inclusive

The flags of the member states and permanent participants

Photos: The Arctic Council

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n 2013, the Arctic Council granted observer status to six newcomers: China, India, Japan, South Korea, Singapore and Italy. A total of 12 observers now sit around the Arctic Council’s table, while 8 member-states and 6 permanent participants (indigenous groups) sit at the table.

In the original spirit of the Council, the 14 member-states and permanent participants tacitly agreed to avoid having more observers than members at the table. As the United States get ready to assume the Council’s chair for two years, the number of observers will inevitably become a critical diplomatic question.

In 2017, the US-chaired Arctic Council ministerial meeting will have to decide whether to grant observer status to newcomers as diverse and as non-Arctic as: Australia, Argentina, Estonia, Mexico, Mongolia, Switzerland and the United Arab Emirates (based on the information that POLARISK has gathered so far).

Many candidates are quite legitimate.

Switzerland undertakes and finances many international scientific research programs in the Arctic and many Swiss companies are currently developing cutting-edge Polar innovations. Australia has many junior and mid-cap companies involved in mining activities all across the Arctic. Like China, Estonia, a preeminent member of the Euro-Barents Council and a member

ARCTIC POLICY

or turn it into a more exclusive body — will be key and will have to be addressed.

Going further than the Arctic Council, the observers question will also have an impact on the Arctic Economic Council (AEC). Finally created after 18 years of gestation, the AEC may end up as being the most important legacy of the Canadian Arctic Council chairmanship (2013-2015). It is the first states-sponsored pan-Arctic forum for economic affairs that welcomes experts and business leaders from all Arctic Council member states.

Taking over the Arctic Council’s chairmanship on April 25th, the US is still assessing whether to put more money and effort than Canada did to sustain the AEC dynamic. However, if D.C. strategists are interested in keeping the AEC alive and/

Photo: Shutterstock

After 18 years of gestation, the AEC may end up as being the most important legacy of the Canadian Arctic Council chairmanship

or reinforcing it, then US AEC members will have to convince their counterparts to welcome experts and business leaders from non Arctic Council member states, or to welcome at least some from Arctic Council observer states.

In other words, if the AEC doesn’t become more inclusive, other pan-Arctic economic groups such as the Arctic Business Network or the Icelandic-Arctic Chamber of Commerce might prove to be more effective and useful to Arctic business owners, operators and investors than the AEC. Furthermore, the Northern Forum (an international organization of twentyfour sub-national or regional governments from ten countries within or near the Arctic Circle) will launch in 2015 an “Arctic business working group” with similar goals to the AEC, led by a preeminent figure in the Arctic business community.

In conclusion, US strategists will have to choose: should the Arctic Council and the Arctic Economic Council be more inclusive or not? If America doesn’t choose in the coming two years, Finland will do it for them between 2017 and 2019. And in that regard, Finland’s interests may not be completely aligned with America’s...

Obama's proposed protections for Alaskan wildlife can expect stiff opposition from Republicans

Obama moves to protect Alaska from the drillbit From the Beaufort and Chukchi Seas to the emotive Arctic National Wildlife Refuge, President Obama intends to put parts of Alaska beyond the reach of explorers, a move that will face fierce resistance from Republican opponents. Amy McLellan reports Washington plans to put 9.8 million acres of the Beaufort and Chukchi seas off limits to offshore development under its five year outer continental shelf oil and gas leasing programme. The draft 2017-2022 leasing programme balances responsible development of the country's domestic energy sources with the protection of areas that are "simply too special to develop", said Secretary of the Interior Sally Jewell in January.

The draft lease programme proposes one sale each in the Chukchi Sea, Beaufort Sea, and Cook Inlet areas but President Obama has put designated portions of the Beaufort and Chukchi Seas out of bounds in order to protect areas of rich biodiversity and of critical importance to Alaska Native subsistence whaling.

"We know the Arctic is an incredibly unique environment, so we're continuing to take a balanced and careful approach to development," said Jewell. "At the same time, the President is taking thoughtful action to protect areas that are critical to the needs of Alaska Natives and wildlife."

These areas include the Barrow and Kaktovik whaling areas in the Beaufort Sea, a 25-mile coastal buffer and subsistence areas in the Chukchi Sea and the biologically rich Hanna Shoal area in the Chukchi Sea, a critical feeding ground for Pacific walruses and bearded seals.

The announcement about the OCS lease programme came hot on the heels of President Obama's move to protect the Arctic National Wildlife Refuge in Alaska. Jewell described ANWR as one of the nation's "crown jewels", saying "we have an obligation to preserve this spectacular place for generations to come".

The Department of the Interior has recommended additional protections for the Refuge, with Obama planning to ask Congress to designate core areas of the refuge, including its Coastal Plain, as wilderness, the highest level of protection available to public lands. If approved, this would be the largest ever wilderness designation since Congress passed the Wilderness Act over 50 years ago. It is not the first time Obama has acted to protect parts of Alaska from oil and gas development: at the end of 2014 he issued a Presidential Memorandum Act that protected the Bristol Bay area.

The 19.8 million acre Arctic National Wildlife Refuge, which spans five distinct ecological regions, is home to the most diverse wildlife in the Arctic, including caribou, polar bears, gray wolves, muskoxen and more than 200 species of birds. Friends of the Earth Climate campaigner Marissa Knodel praised the President's "bold meaningful actions to protect our public areas from fossil fuel development".

Obama's proposal is likely to meet stiff opposition in the GOP-controlled Congress, however.

US Senator Lisa Murkowski of Alaska and the Republican chairman of the Senate Energy and Natural Resources Committee, who backs oil development in the ANWR, called the Obama administration's proposal a politically motivated attack on Alaska. "It's clear this administration does not care about us, and sees us as nothing but a territory," she said in a statement.

Analysts at London-headquartered consultancy POLARISK Group estimate that if Obama gets his way between US$45 billion to US$1.1 trillion worth of extractible natural resources over 35 years would have to remain underground.

www.polarisk-group.com www.frontierenergy.info WINTER 2015 17

ARCTIC SHIPPING

Niche Sea Route

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pinion remains divided as to whether the Northwest Passage and Northern Sea Route will become anything more than niche markets.

The Northwest Passage is said to be too shallow. Critics contend that its network of islands and inlets hinders navigation, that much of the area lacks proper charts and there is little in the way of infrastructure, including ports and search and rescue facilities. Similar infrastructure criticisms are made for the Northern Sea Route (NSR).

Despite misgivings in some quarters, Fednav‘s 24,997dwt handyside Nunavik became one of the first commercial vessels to transit the Northwest Passage completely and the first to do so unescorted with an Arctic cargo when it sailed from Deception Bay in northern Quebec last September with a cargo of 23,000 tons of nickel concentrate to Bayuquan, China. With the route to China via the Northwest Passage around 40% shorter than the traditional Panama Canal transit, the Nunavik was able to cut its greenhouse gas emissions by more than 1,300 tonnes.

The NSR, like the Northwest Passage, has its supporters, principally in Russia, but domestic hopes that use of the route will increase considerably within the next decade have dampened considerably. The figure of around 10 million tons projected in June 2013 as “absolutely normal” by Prime Minister Dmitry Medvedev looks increasingly wide of the mark as traffic and cargo volumes on the route have fallen dramatically.

Cargo transported in transit between Europe and Asia in 2014 was down by almost 80% compared with the previous

Much of the traffic is related to oil and gas production

18 WINTER 2015 www.frontierenergy.info

The challenges of Arctic shipping can offset the distance savings

year as the number of NSR voyages fell to 53 from 71 in 2013. Significantly, traffic was dominated by Russian-flagged cargo ships and oil and chemical tankers.

This Russian flag domination is likely to continue as the rouble – at one point last December the world's worst-performing currency – continues to fall in value against the dollar. Low oil prices, a dearth of ports and concern over the provision of search and rescue services in treacherous waters increasingly discourage foreign use of the route.

The scale of the western retreat has been revealed in statistics showing that Swedish shipowner Marinvest failed to register a single voyage last year after deploying

Cargo transported via the NSR in 2014 was down by almost 80% tonnage on the route nine times between 2011 and 2014. Nordic Bulk Carriers had just one NSR voyage in 2014, compared with 15 in the previous two years.

Aleksander Olshevskiy, head of the Northern Sea Route Administration, has cited two reasons for the downturn in cargo transport. One is that EvroKhim, which had transported bulk cargo from Murmansk from the Kovdor Mining Company, shipped 200,000 tons less.

And Novatek was no longer shipping gas condensate from Vitino on the Kola Peninsula, opting instead for Ust-Luga.

Has the potential of Arctic routes as an alternative to the Suez Canal been overstated? A paper Commercial Arctic shipping through the Northeast Passage: routes, resources, governance, technology, and infrastructure, published in Polar Geography insists that the advantage of the 24% distance reduction for Shanghai –Rotterdam is offset by factors including harsher weather and free-floating sea ice, requiring more expensive ship construction and winterisation investments.

“Remoteness, lack of broadband communications, and limited SAR capabilities increase the risk of Arctic

operations. Shallow waters limit vessel size, and ice movements lead to unpredictability of the ships’ arrival time,” the paper notes.

The potential consequences of western sanctions imposed in retaliation to President Vladimir Putin’s foreign policies are still being played out. There is little thus far on which to predict trends bar the impact on the Russian state-controlled oil company Roseneft, a vital cog in a Russian economic wheel reliant on oil and gas for about 70% percent of exports and half its budget.

Roseneft will not be able to continue drilling in the Kara Sea this year as a result of sanctions prohibiting its cooperation with ExxonMobil. However, it will be to the fore as the Kremlin seeks to weather the sanctions storm by increasing oil sales to Asia. Last year Russia sold some 51 million metric tons of crude to China, Japan and South Korea compared with 41 million tons in 2013.

Roseneft agreed a new contract with China National Petroleum Corp in 2013 for 325 million tons over a period of 25 years and this year the Russian company plans to boost shipments to the east by 30% to 32 million tons and exports to China by 27% to 29 million tons.

Criticism of the lack of infrastructure and search and rescue services is being addressed in part by Sovcomflot, which is seeking to meet the increasing requirements of large-scale oil and gas projects by expanding its fleet of specialised and technically advanced vessels. New vessels ordered by Sovcomflot to serve Russia’s Yamal LNG project include an ARC7 pilot Arctic ice class LNG carrier. The vessel’s power capacity compares to that of a nuclearpowered icebreaker and will allow it to transport cargo along the NSR when it enters service in June 2016.

The Russian Register (RS) is surveying the construction of another series of unique ARC7 ice class shuttle tankers with a deadweight of 42,000 tonnes to operate on the Novoportovsk gas condensate field, the largest field on the Yamal peninsula. These vessels are expected to be completed in 2016.

Photos: USCG / Arctech

Transit through the Northwest Passage and Northern Sea Route fell dramatically in 2014. Christopher Mayer reports on the shipping slump and considers the outlook for the year ahead

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OIL SPILL TECHNOLOGY

The Ohmsett Facility in New Jersey

THINK TANK Rigorous testing is essential to refine and improve oil spill recovery solutions.

Jane-Ellen Delgado of Ohmsett, the largest outdoor wave/tow tank facility in North America, updates Frontier Energy on this critical work

20 WINTER 2015 www.frontierenergy.info

ice conditions and dispersant use in cold water, to real-time data collection on parameters such as ice coverage.

“During the winter months, we can replicate cold climate conditions by using a chilling system to regulate the water temperature in the test basin,” says Bill Schmidt, programme manager for Ohmsett. “In addition, we place manufactured sea ice in the test tank to simulate an ice field in which response equipment will be operating.”

“Growing” ice Currently the sea ice is sourced from the US Army’s Corps of Engineers Cold Regions Research and Engineering Laboratory (CRREL), where it is manufactured or “grown” to support multiple Army research programmes for extreme climates. The grown ice sheet is chainsawed into blocks of approximately 48 x 48 x 8 inches thick. Once the blocks of sea ice arrive on site at Ohmsett, they are stored in 18-foot roll-off refrigerated boxes until ready for use during testing.

To expand the window of availability for testing in simulated Arctic conditions at the facility, BSEE funded Virginiabaed PCCI, Inc to research and develop surrogate ice modules made of composite materials that can be used to test oil spill response equipment in various, repeatable conditions.

“The modules are still under development but we hope to be able to

meet a specified set of requirements, with the ability to be modified to simulate natural ice in various Arctic conditions,” explains Lori Medley, chief of BSEE’s Oil Spill Response Research Branch.

In early 2013, four weeks of full-scale skimmer testing took place at Ohmsett during the BSEE-sponsored Ice Month – as reported in Frontier Energy - to evaluate the use of mechanical equipment

Testing showed that simple improvements such as a debris guard ahead of the active skimming system could potentially enhance the flow of oil and prevent small ice pieces from jamming the discharge hose

in broken ice fields. During this unique event, mechanical equipment currently used or being evaluated for use by the US Navy and US Coast Guard, was tested in the tank under various simulated Arctic conditions using oil.

“Ohmsett personnel prepared ice conditions in the test basin by installing a chiller to maintain the tank water at 1.66o C and placing sheets of sea ice of various sizes within the test area to achieve the desired ice coverage,” says Schmidt.

Photos: Ohmsett

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ecovery of oil in ice presents unique challenges. While response equipment and techniques to contain and recover oil spills in the offshore Arctic regions do exist, there remains a testing and evaluation requirement to determine how well they perform.

Ohmsett - The National Oil Spill Response Research & Renewable Energy Test Facility - plays a critical role in developing effective response technologies in order to ensure a rapid and efficient response to an actual spill.

The facility, which is operated by the US Department of Interior’s, Bureau of Safety and Environmental Enforcement (BSEE), provides a crucial intermediate step between small-scale bench testing and open water testing of equipment by allowing testing of full scale equipment in a controlled environment. Information gathered at Ohmsett is used by industry leaders to develop new technology and create more effective procedures for responding to future oil spills.

Over the years, there have been many ice experiments conducted at Ohmsett

by US and international companies and government agencies. As the operating official of Ohmsett, BSEE has dedicated resources to advance the knowledge of oil spill response capabilities in cold water and ice-infested environments. BSEE research projects at Ohmsett range from mechanical containment and recovery in

OIL SPILL TECHNOLOGY

Ice Month results The Ice Month testing highlighted several areas where improvements could be made to existing skimmer technologies to enhance their capabilities for recovering oil in drift ice. Results showed that simple improvements such as a debris guard ahead of the active skimming system could potentially enhance the flow of oil to the skimmer as well as prevent small ice pieces from jamming the discharge hose.

The US Coast Guard Research and Development Center awarded a contract to Michigan-based Marine Pollution Control (MPC) for the design and construction of an Ice Management System or “ice cage” that could be used interchangeably on several skimmers such as the Elastec TDS 118G Drum skimmer

Once dispersant was applied to an intentional oil slick, breaking waves were introduced to initiate dispersion whereby oil would break into small droplets and became distributed into the water column leaving only a small amount of the oil on the water's surface

We need to develop and test the best and most efficient response equipment in the event there is a spill in the Arctic and the Desmi Helix skimmer. These two skimmers will be tested in March 2015 at Ohmsett in conditions similar those present during the Ice Month tests, using sea ice sourced from CRREL and the surrogate ice modules.

Ice Month also identified the need to develop a system for near real-time data collection on parameters such as assessing oil versus ice coverage. Maryland's MAR Incorporated and California-based Ocean Imaging were contracted to develop a fully integrated imaging system and software package to enhance the facility’s capabilities for cold water and simulated Arctic condition testing. The result is a compact user-friendly system for mapping the extent of oil-in-ice spills with the ability to not only differentiate between oil, ice, and open water, but to provide data for oil class thickness between and around the ice.

Dispersants Other important research includes the use of dispersants in cold water and ice environments. Since oils and dispersants varying in properties and chemical makeup can react differently in cold water and ice, cleaning up oil spills using dispersant technology can be challenging.

Most recently, BSEE investigated various

The Lori Mini brush skimmer being tested in 70% ice coverage.

The Lori Mini is currently used by the US Navy in Alaska

dispersant formulations for use in Arctic environments. During this study, Ohmsett personnel simulated the environmental needs of the test by using a chiller to maintain the test basin water temperature to just above the freezing point of saltwater. In order keep the surface from freezing solid, bottom mounted circulators where used to keep the water moving and enhance thermal transfer. In addition, instrumentation was sheltered or warmed to protect it from the cold.

Other experiments at Ohmsett have included Dispersant Effectiveness Testing in Cold Water, Oil Dispersants in Cold

Water and Broken Ice, Oil Recovery with Novel Skimmer Surfaces under Cold Climate Conditions, and Chemical Herders in Ice. With Arctic exploration and production likely to continue in the foreseeable future, further work still needs to be done to prepare the industry for operations in harsh environments.

“We need to develop and test the best and most efficient response equipment in the event there is a spill in the Arctic,” says Schmidt. “To that end, we continue to enhance Ohmsett’s simulated arctic environment testing capabilities.” www.frontierenergy.info WINTER 2015 21

OIL SPILL TECHNOLOGY

Gobbler can provide an immediate response at sea

GOBBLER BOATS: an appetite for pollution

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wo British boat builders and their American partner have devised a new system designed to tackle the scourge of oil spills by quite literally “gobbling up” the pollution.

The Gobbler is an oil-resistant glassfibre vessel that can remove oil from rivers, lakes, offshore and coastal areas, including in Arctic waters.

The patented design is 8.85 metres long x 2.55 beam x 400mm draft, weighs 3.50 tonnes and can travel at up to 23 knots powered, by a single Italian 250 hp EPA and EIAPP Certified marine diesel engine.

Water-free oil collection rate is up to 40 tonnes per hour. Although the design has been extensively tank tested at the UK Wolfson Unit for Maritime Technology, the next step for Portsmouth-based Gobbler Boats Ltd is to put the prototype (the construction of which has been helped by a £100,000 grant in regional funding from the South Coast Solent Green fund) through extensive sea trials in the Solent estuary off Southampton and the Bay of Biscay. On completion, final certification will be issued by the UK's MCA (Maritime Coastguard Agency). In due course the prototype will be donated 22 WINTER 2015 www.frontierenergy.info

to the RNLI, who will provide off-shore safety and survival training to future Gobbler crews.

“Our target was to build a high quality, dedicated oil recovery boat that was small, affordable and versatile, with an off-shore operational capacity to cover a multitude of scenarios,” says Paul

A tilting ski-trailer, towed by snow-cat or similar, is designed to launch and recover the lightweight vessel from ice terrains Jauncey, who runs Gobbler Boats Ltd with his son Simon.

Importantly, the company has worked closely with Lloyd's Register to achieve the unique 150 nautical mile structural certification that enables the boat to be installed aboard all types of commercial ships, tankers and oil platforms for immediate response to oil spills at sea. A single multi-purpose drive-out, drive-in,

container foot-print orientated custom cradle is designed to ensure easy and safe launch, recovery and on-board stowage.

This certification is key as it ensures instant clean-up of spills at sea before they can cause environmental and commercial damage ashore, addressing one of the key issues that emerged from the fall-out of BP's Deepwater Horizon disaster in the Gulf of Mexico in 2010.

Because Gobbler doesn’t carry the oil she collects, the USCG decree she is exempt from the usual annual surveys so operators will suffer zero downtime.

Quality maintenance is mandatory and a limited towing licence could be required as per State requirements.

For Arctic operations with Mother-ship support, an optional tilting ski-trailer (towed by snow-cat or similar) is designed to launch and recover the lightweight vessel from ice terrains. The multi-axle version of the same trailer enables launch and recovery from beaches or rough terrain worldwide.

To access incidents at remote locations, the boat/trailer combination is designed to fit the load space of transport aircraft.

“Gobblers cover all scenarios including

Photos: Gobbler Boats Ltd

A new boat, set for sea trials this year, is designed to provide versatile un-interrupted 24/7 oil recovery at source, even in remote Arctic areas. Amy McLellan reports

OIL SPILL TECHNOLOGY

The Pods double as easy-access the currently unaddressed voids in the off-shore fuel depots to service groupmarket,” says Jauncey, who has been building boats for 50 years and has sailed working vessels, their fuel cells able to be periodically replenished from a the worlds’ oceans with his family whilst support ship. Approved solar powered echoing the Lloyds and MCA ethos of bladder lights are supplied for night time “Safer lives, Safer ships, Cleaner seas”. operations, and Pods are equipped with The basic Gobbler can be optionally regulation lights and AIS. Combined use equipped for specific client operational of vessels and Pods enables un-interrupted requirements, such as integral skimmer 24/7 oil recovery at source, drastically heating and an internal on-board heating system to reduce viscosity of oil recovered reducing the possibility of coastal pollution and eliminating time wasting from Arctic waters. Factory applied light discharge ashore resulting in 7x greater emitting UV coatings are available to efficiency. Pods are weight matched to the ensure the vessel peripheral work areas lifting capacities of different helicopters, are illuminated by an environmentally or can be deployed from ships. green, “power-free” method during the Although uniquely “Ocean capable” hours of darkness. by design, Gobbler can operate wherever “Wherever the vessel is operated, a range of hydraulic or electronic “plug and pollution occurs, be it inshore, river locations, lakes, coastal waters or play” options are available to equip it offshore. This is a key distinguishing accordingly,” says Jauncey. factor for the However, system, which Gobbler isn't just has been evolving a boat: it's more The 150 nautical mile since 2009 when accurate to describe structural certification the father and son it as a total oil team, and their recovery system. means the boat can be American partner The compact twoinstalled aboard all types of Jose Suarez, began man vessel can commercial ships, tankers and developing the be equipped with idea. Along the optional skimmer oil platforms for immediate way, they have types, with oil response to oil spills at learned by studying recovery capacities sea...before they can cause existing systems, ranging from 16from their own 40 tons per hour environmental and commercial maritime insight, of water-free oil. damage ashore and from the The recovered oil shortcomings of is pumped via a disasters such as patented centrally Exxon Valdez and Deepwater Horizon. mounted bollard into the quick-release, The vessel's ability to quick release re-useable bladders which can either the tow line for a fast exit in the event float-free for later collection, be towed of a dangerous situation such as fire, to shore, or connected to the multiple explosion or accidental ignition, gives umbilical hoses of a QuadPod™ or the crew the greatest chance of survival.

OctoPod™ for simultaneous pumping to An important safety feature was added a support ship.

Construction of the prototype

when, as tragically highlighted in 2010, two people died from fumes in the cleanup of the Deepwater Horizon accident.

Every Gobbler boat is fitted as standard with reverse cycle air-conditioning and wheelhouse UV air purification. Other safety features include solid state electrics, and fully hydraulic powered equipment to provide better than 95% spark-free operation. The Auto-Clean Jet intake ensures that, in hazardous locations with leeches, crocs, piranhas or similar, diving under the vessel is eliminated in the event of an obstruction.

Sea-trials are scheduled for May 2015, with the debut at SeaWorks International, Southampton UK in June.

A new production line planned for August/September will aim to build up to 20 boats by the end of the year. As additional new moulds come on stream the Portsmouth UK factory, a new facility already approved in Arizona, and others planned for the southern US States, means there’s the potential to eventually create 2,000 jobs, says Jauncey.

It's an interesting addition to the oil spill recovery toolkit. www.gobblerboats.com

Photo: Vikoma

Vikoma and Mobimar supply oil spill equipment to Finnish coastguard

Turva: the new ship has oil spill equipment to meet the needs of the Finnish coastguard

Vikoma International, founded by BP in the wake of the 1967 Torrey Canyon oil spill, has worked with Finnish shipyard Mobimar to supply the latest oil spill response equipment to the new Finnish coastguard vessel, Turva. The vessel, which is owned by the Finnish Border Guard, will be equipped with an 800 metre Vikoma oil containment boom, four Vikoma boom reels and the Mobimar in-hull integrated recovery system, FinnSweep®, along with other oil recovery systems, to provide a recovery capacity of over 1,000 cu metres.

“The climate in Finland offers significant challenges in the winter months and Vikoma’s oil spill equipment was selected by the Finnish Border Guard for their latest hi- tech vessel, as it is well proven around the world and able to work effectively in difficult environments,” said Paul Rayner, sales director of Isle of Wight-based Vikoma.

The vessel can be used in all Finnish sea conditions and uses two azimuth thrusters and a centerline shaft to ensure robust and versatile operations. The boat can deploy the oil spill response equipment quickly, with the system fully operational five minutes after arriving at an accident area.

www.frontierenergy.info WINTER 2015 23

EVENTS

ATC 2015 March 23 – 25, 2015 Bella Center, Copenhagen In 2015 the Arctic Technology Conference will cross the Atlantic to Copenhagen to provide easier access for European and Asian Arctic practitioners. ATC is an Arctic-focused expansion of the Offshore Technology Conference (OTC), the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production and environmental protection. 2015 discussion topics will include Arctic Core Capabilities, Arctic Trailblazers, Arctic Past Projects and Global Arctic Market Outlook - Pushing the Frontier. www.arctictechnologyconference.org

Brian Miller of Shell International E&P and ATC Program Chair, highlights the key events and themes of ATC 2015

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n behalf of the Offshore Technology Conference (OTC) Board of Directors, OTC’s sponsoring organizations and the Arctic Technology Conference Program Committee, it is my pleasure to welcome you to the fourth Arctic Technology Conference (ATC). ATC’s first conference in Europe is being held at the Comwell Conference Center Copenhagen (Bella Center) in Copenhagen, Denmark 23-25 March 2015.

The Arctic remains this century’s development opportunity, in spite of current oil prices and political challenges. This conference addresses critical topics and offers opportunities to be prepared for progress in the Arctic, you won’t want to miss.

Supported through OTC’s network of renowned scientific and professional societies, ATC provides a worldwide platform for collaboration with industry colleagues, vendors and academia about challenges and solutions for the Arctic regions. ATC 2015 will present a highly specialized program that includes more than 150 technical presentations on topics under Geology and Geophysics, Exploration and Production, Physical Environment, Logistics and Regulatory Environment and Social Responsibility themes.

This three-day conference includes Panel Sessions focusing on Global Arctic Market Outlook, Arctic Technology, Regulatory Issues, Arctic Metocean, and Ice Forecasting and Routing Optimization. In addition to the technical talks and posters, the Plenary and six Topical sessions will offer insight from industry leaders into Arctic themes. The Arcticfocused exhibition hall will provide numerous opportunities to network with colleagues and exhibitors.

There are two new and exciting events this year at ATC 2015. First, The Arctic Next Wave, will focus on what you need to know to get started in the Arctic. Secondly, we will have our first ATC Distinguished Achievement Awards luncheon, modelled after the prestigious OTC Awards of the same name. Finally, a continued highlight, the Spotlight on Arctic Technology awards recognize innovative new products and technologies displayed in the exhibition.

Welcome again to ATC 2015 and we hope you success at the conference and an exciting and memorable experience in Copenhagen!

24 WINTER 2015 www.frontierenergy.info

Green Ship Technology Conference 2015 March, 2015 Copenhagen, Denmark From policy to technology, this major event brings together decision-makers and thought leaders to help equip the shipping industry make informed decisions on crucial environmental issues. www.informamaritimeevents.com Interspill 2015 March 24 – 26, 2015 Amsterdam, The Netherlands Building on the success of Interprill 2012 in London, which attracted 1,300 delegates, visitors and exhibitors from over 70 countries, this leading European oil spill conference and exhibition will provide a platform for industry, academia and government to meet, discuss and network. www.interspill2015.com Arctic Oil & Gas North America April 14 – 15, 2015 Ice Management for Offshore Operations Seminar April 16, 2015 Delta Hotel, St.John’s, Newfoundland, Canada Arctic Oil & Gas North America Conference 2015: developing innovative solutions to overcome unique technical and environmental challenges in the Arctic. A combination of industry driven discussion sessions and innovative technology-led presentations. www.ibcenergy.com/event/ arcticnorthamerica Arctic Science Week Summit April 23 – 30, 2015 Toyama, Japan ASSW is the annual gathering of the international organizations engaged in supporting and facilitating Arctic research in order to provide opportunities for coordination, collaboration and cooperation in all areas of Arctic science. The summit attracts scientists, students, policy makers and other professionals from all over the world. www.assw2015.org

TO ADVERTISE your event in the magazine, website or eNewsletter, please contact publisher@frontierenergy.info

Arctic Council Ministerial Meeting April 24 – 25, 2015 Iqaluit, Nunavut The meeting will bring together ministers of the Arctic states and highlevel representatives of the Indigenous Permanent Participant organisations to set the Council’s objectives for the coming two years and highlight achievements during Canada’s 20132015 chairmanship of the Council, before handover to the US. www.arctic-council.org WPC Leadership Conference May 25-28, 2015 Tromsø, Norway The World Petroleum Council (WPC) is pleased to present the first WPC Leadership Conference on Responsibility, Cooperation and Sustainability, to be held in Norway in 2015. This event will bring together industry leaders to discuss and demonstrate best available technology and practices to minimize impacts and risks to people and environments. By highlighting the industry's strategies in places such as the Arctic and other frontier areas we can contribute to raising the standards across the sector. www.wpcleadership.com ONS 2015 August 17 – 19, 2015 Stavanger, Norway This leading conference and exhibition will map out the future of the Norwegian Continental Shelf, discussing new projects, upcoming contracts and new technology. www.ons.no 2015 Arctic Energy Summit September 28 – 30, 2015 Fairbanks, Alaska The Institute of the North’s 2015 Arctic Energy Summit will cover the key themes of Security and Affordability. www.arcticenergysummit.com 3P Arctic, The Polar Petroleum Potential Conference October 6 – 9, 2015 Park Inn by Radisson Pribaltiyskaya, Saint Petersburg Organised by the American Association of Petroleum Geologists, 3P Arctic has been running since 2009 and is the leading geoscience event for the Circum-Arctic basins. www.3parctic.com

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ANTARCTICA

Round the Clock SCIENCE

Moon sets over America's McMurdo Station

Scientists across the frozen continent have been busy with experiments.

Frontier Energy looks at some of the highlights

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esearchers from the Queen Elisabeth Research Station in Antarctica, the International Polar Foundation's zero emission facility, have reported another successful season.

The 10th Belgian Antarctic Research Expedition saw scientists extracting ice and firn cores from various sites across the King Baudouin Ice Shelf. It isn't easy to drill deep into the ice shelf to extract a deep 150-metre ice core, with the technical team battling bad weather and stuck drillheads that meant even working in shifts to make the most of 24-hour sunlight they weren't able to get to the bottom of the ice shelf, with the drill stopping at 107 metres. Even so, this will reveal a wealth of information for the scientists.

The International Polar Foundation also spotted that a 70 sq km iceberg had calved off the tip of the King Baudouin Ice Shelf in East Antarctica late January.

This is a rare phenomenon: the last major calving on the King Baudouin ice shelf was in the 1960s. Scientists said there was no sign of acceleration

of ice discharge from this particular ice shelf, which remains relatively stable.

This stability is in stark contrast to the dramatic increase in ice flow velocity seen in places like Pine Island Glacier in West Antarctica, which is rapidly losing ice to the ocean.

Over in West Antarctica, using a specially designed hot-water drill that can cleanly bore through a half mile of ice, a US National Science Foundation-funded team of researchers become the first ever to reach and sample the "grounding zone," where Antarctic ice, land and sea all converge. This should provide clues about the mechanics of ice sheets and their potential effects on sea-level rise.

Cameras sent down the drilling hole also revealed an unsuspected population of fish and invertebrates living beneath the ice sheet, the farthest south that fish have ever been found.

The Whillans Ice Stream Subglacial Access Research Drilling (WISSARD) project took place on the West Antarctic Ice Sheet roughly 850 km from the edge of the Texas-sized Ross Ice Shelf, the

world's largest floating slab of ice. The hot-water drill was developed by the University of Nebraska-Lincoln and more than 40 scientists, technicians and camp staff worked around-the-clock to collect as much data as they could while the borehole remained open.

Over at the UK's most southerly research station, Halley, a medical doctor has started a series of life science experiments to study how people adapt to life in remote and isolated locations in preparation for prolonged space flight. One of these experiments, set up in collaboration with the European Space Agency (ESA), involves staff at British Antarctic Survey’s (BAS) Halley Research Station using a specially designed spaceflight simulator over the austral winter.

The experiment aims to investigate how well previously trained skills are maintained over the nine months of winter. The Halley crew will live in the same conditions as the teams being studied at Concordia — a joint French/Italian station, located on the other side of the continent — except they will be at sea level. Their colleagues at Dome Concordia live at 3,200 metres above sea level.

A dramatic rescue in thick sea ice off Antarctica is likely to add further weight to the long-running debate about America's looming shortfall in icebreaker capability. Last month, the US Coast Guard's only active heavy icebreaker rescued a fishing vessel that had been trapped in Antarctic ice 900-miles northeast of McMurdo Sound for nearly two weeks. The Antarctic Chieftain, an Australianflagged fishing vessel, had damaged three of its four propeller blades in the ice . It was rescued by the USCG Cutter Polar Star, which broke through 150 miles of thick Antarctic ice and navigated around massive icebergs to reach the trapped vessel and its 26 crew.

The icebreaker's crew navigated through difficult weather conditions during the five-day rescue operation including heavy snow fall, high winds and extreme ice conditions.

"I doubt any medium icebreaker could have made the rescue since we had to go on turbine to get through the multiyear ice that appeared to be as thick as 20 feet in places. The amount of icebergs in the region suggested that the area was extremely hazardous to navigation," said Captain Matthew Walker, the commanding officer of Cutter Polar Star. "This rescue demonstrates the importance of our nation's only active heavy icebreaker in the Polar Regions."

The crew of Polar Star was deployed to McMurdo Station, Antarctica, as part of Operation Deep Freeze, which provides military logistical support to the US Antarctic Program managed by the National Science Foundation. They will now return to their home port of Seattle as debate continues about the future of the icebreaker fleet: the US Coast Guard has said that independent analysis shows it needs three heavy and three medium Polar Star to the rescue...again icebreakers to cover the nation's anticipated needs in the Arctic and Antarctic.

26 WINTER 2015 www.frontierenergy.info

Photos: National Science Foundation / USCG

Polar Star rescue sparks more debate about US icebreaker capacity

RENEWABLE ENERGY

Wind power: requires adaptation to very low temperatures

Renewable energy could help isolated Arctic communities that struggle with the high cost of imported fuel

GREENING THE ARCTIC Renewable energy – including solar - could bring clean, affordable energy to remote Arctic communities and reduce harmful black carbon emissions. James Ellsmoor, who is studying Geography at the University of North Carolina at Chapel Hill and is Director of Project Development at Solar Head of State, reports

Photo: Shutterstock

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he plight of the Arctic is often used as a poster child for promoting renewable energy and reducing greenhouse gas emissions.

However, compared to the progress seen elsewhere in the world, the Arctic is lagging behind in implementing renewable energy technologies and continues to rely almost entirely on a fossil-fuel based economy.

There exists great potential for renewables in the region above the Arctic circle, particularly for more isolated communities. Off-grid communities stand to benefit immensely, including many indigenous communities in Canada and Alaska, which may pay up to US$2/kWh for electricity, compared to US$0.08/kWh in larger southern cities. This is primarily due to the high cost of imported fossil fuels to remote areas, making the prospect of renewable energy very tempting.

In addition to cheaper electricity prices and lower CO2 emissions, there could be many spinoff benefits of renewable energy for the Arctic, including employment opportunities and reduced fumes from noisy generators. Increased energy security would also be a positive adaptation to the effects of climate change.

Although CO2 emissions reductions would have a negligible effect on climate change overall, a key environmental benefit would be the reduction of black carbon emissions. Unlike carbon dioxide, the location in which this pollutant is released is key when gauging its impact, as it can speed up ice melting by increasing the absorption of heat energy.

As one of the most climate vulnerable regions in the world, the Arctic could set a lead in developing clean technologies and mitigating its, albeit small, contribution to emissions. The

problem is that demand for electricity is demonstration of successful renewable energy projects in the darkest, coldest and highest in the winter, when little light is available. However Boström points out most remote corner of the world would that wind and solar energy tend to be show the technology is certainly feasible complimentary in the Arctic, meaning in the rest of the world. that when one is unavailable the other The broad array of available renewable generally is. energy technologies means there are Wind has great potential in the North, many applications in the Arctic region. although wind turbines often need to Geothermal energy is already an be adapted to function well at low important part of the energy matrix temperatures. in Iceland, as is Specially designed hydropower in wind turbines have Norway. A key The demonstration of been used with reason Denmark successful renewable energy great success in is able to sustain Antarctic research its high percentage projects in the darkest, coldest bases, but these of wind energy is and most remote corner of designs are not because it draws the world would show the currently easily on Norwegian available for hydropower at technology is certainly feasible installation. Hybrid times of low wind in the rest of the world systems could speed. Ocean and also function well river energy also with a mixture have a future part of natural gas and renewable energy, to play in the region, but for now all eyes as some communities have this fossil are on the potential of wind and solar. resource available in abundance.

Professor Tobias Boström and fellow The technology currently available researchers at the Arctic University makes it unlikely that Northern of Norway in Tromsø have set out to communities will remove themselves from prove the viability of solar energy in fossil fuels entirely, but a mix of sources the region through a trial solar power now looks very economically promising. plant in the town of Piteå, Sweden. The For smaller off-grid communities, plant is expected to generate 28MWh annually, and is equipped with panels that battery technology will need to be vastly improved and made cheaper before rotate to follow the sun through the sky, intermittent renewable resources can be maximizing electricity generation.

Boström says “a key myth is that people relied upon. For areas connected to the main grid, backup in some other form think it’s too cold and dark in the Arctic so it’s not possible, but that’s just not true. will be needed to level out supply and demand, such as hydropower in Norway.

That’s the biggest challenge for us, to In the mean time, while so much work is convince people that it really is possible.” being done on oil extraction in the region, In fact, solar panels work more more attention also needs to be paid to efficiently in the cold, as long as there the possibilities of renewable sources. is plenty of sun. Another often cited www.frontierenergy.info WINTER 2015 27

INSIGHT Race t-shirts from the Arctic certainly make a great keepsake and conversation piece

Todd Ralph is a hydrographic support manager

Extreme running, Arctic style As a hydrographic support manager for Fugro, Todd Ralph has participated on multiple Arctic programs in places like Fox Basin, Baffin Bay, and the Beaufort Sea. But that doesn’t mean he spends all of his time in the cold and dark

28 WINTER 2015 www.frontierenergy.info

Photo: Fugro

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Depending on the assignment, I accomplish these tasks either ost of our projects are accomplished during the from the relative comfort of a field office, or in the open air on open water season, when the days are long and the a vessel. They both have their advantages, and either way, I’m ice extent is minimal. Depending on the project, working in some pretty remarkable surroundings.

I could find myself working on a vessel, from a field office After dinner, my preferred way to relax is to be outside, near the worksite, or from one of Fugro’s regional offices. walking or running. On the North Slope, wildlife encounters Occasionally, a project might require my time to be split among all three locations. In these cases, I get to experience the extreme are not uncommon so walking long distances alone is highly discouraged. Thankfully, a few service companies organize North without much suffering. regular 5K runs that attract hundreds of participants, providing My most recent Arctic assignment was on the North Slope of safety in numbers. Each run is unique in terms of route and Alaska, involving a geohazards project in the Beaufort Sea. The merriments, but they all provide that race t-shirt that are so project kick-off took place in the winter, which was indeed cold coveted by runners, and race t-shirts from and dark. Even though the North Slope the Arctic certainly make a great keepsake is populated year round, certain safety and conversation piece. precautions are required.

It is really satisfying to know that Unless you are working from a massive As an example, in winter conditions we the data we deliver will make vessel, outdoor activity gets a bit trickier travel with heavy outerwear, boots, hats, real impacts, from defining new when you are offshore. There have been and gloves at all times in case of accident occasions where I have had access to a or stranding. We also receive training shipping routes to engineering treadmill on a vessel, but not often. If on how to navigate roadways during Arctic infrastructure, to informing exercise isn’t an option, I’ll unwind by periods of low visibility, how to pass heavy responsible resource development taking something that is a little bit work equipment, and how to handle accidents related and try to read up on it. This and wildlife encounters. could be an article from a trade magazine During the summer field season, we or maybe a manual for a new piece of equipment—something replace our Arctic gear with more temperate clothing, although I don’t have time for otherwise. When you are not in the hotwarm outerwear is still required for vessel-based work. We also seat situation of having to make new equipment work, but you outfit all crew with cold water immersion suits for use during want to understand how it works, this kind of reading really potential abandon ship situations, the procedures for which are can be relaxing. covered during mandatory cold water survival training.

There is no easy project in the Arctic. They all require intense My day-to-day responsibilities are project and location planning and careful execution. For me, the measure of success specific, but taking part in Arctic field operations almost always is delivering a project on time, on budget, and with no safety means long days. In addition to ice, offshore survey programs are impacted by weather, permitting regulations, and subsistence or environmental incidents. It is also really satisfying to know that the data we deliver will make real impacts, from defining whaling. These factors make for a limited field season that new shipping routes to engineering Arctic infrastructure, to routinely involves 24-hour operations with two shifts and informing responsible resource development. rotating crews.

I am always glad to participate on Arctic projects, especially when When I am onsite, I typically work a standard 6:00 am to 6:00 pm shift, starting my day with client and/or crew meetings, my role involves a physical presence. The sense of being in this vast and untouched environment is overwhelming. It’s even more awe followed by a full day of managing logistics, reviewing data, inspiring than my native Newfoundland and Labrador. acting on safety observations, and writing progress reports.

NEW FRONTIERS! NEW TECHNOLOGY! NEW CHALLENGES! Frontier Energy is the world’s first magazine dedicated to the oil & gas and shipping operations in the Arctic and other challenging ice-affected regions.

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NEXT ISSUE Spring 2015

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