Frontier Energy Spring 2015

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

www.frontierenergy.info SPRING 2015

ATLANTIC CANADA Rising to the challenge

Frontier Drilling Through the permafrost

Virtual Reality 3D ice simulation

Seismic Technology Joined up thinking

Emergency Preparedness Safety first

SEISMIC • ROVs • DRILLING • TECHNOLOGY • EVENTS

15 0 2 E C U T S O IS

07

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CONTENTS

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08

20

28 Spring 2015

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

www.frontierenergy.info SPRING 2015

ATLANTIC CANADA

IN THIS ISSUE Features

Rising to the challenge

Frontier Drilling

Regulars

Through the permafrost

06 CANADA: FOREWORD FROM MINISTER DARIN KING

Virtual Reality 3D ice simulation

Emergency Preparedness Safety first

SEISMIC • ROVs • DRILLING • TECHNOLOGY • EVENTS

04 NEWS Shell sharpens

07 CANADA: RISING TO THE CHALLENGE Newfoundland and

Seismic Technology Joined up thinking

15 20 C UE OT ISS

On the cover Jakobshavn, the biggest glacier on the planet with icebergs of different forms in the gulf.

Greenland

Labrador, home to the 2016 Arctic Technology Conference, has the experience to lead oil and gas development in the region

08 CANADA: PIPELINE SYSTEMS AND JIPS Understanding the potentials of harsh environments and ice-affected regions in the Arctic

10 CANADA: CALL FOR BIDS The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has released details of the first call for bids in the Eastern Newfoundland region

11 CANADA: STATOIL BOOSTS ACTIVITY Norwegian operator continues to acquire exploration acreage offshore

12 CANADA: ATLANTIC PRODUCING FIELDS Offshore oil and gas

26 EVENTS Frontier

production from Canada's Atlantic coast is on the increase

13 CANADA: TAKING STEPS INTO THE ARCTIC A look at university research projects such as Sustainable Technology for Polar Ships and Structures (SEePS2)

14 UK AND THE ARCTIC How the UK is looking to engage more actively with a changing Arctic region

16 FRONTIER DRILLING Understanding the technical challenges facing operators drilling through the permafrost

18 ICE NAVIGATION The importance of 3D ice simulation in building Cover Photo: Shutterstock

drill-bit after Chukchi lease approved; Prudhoe Bay no longer biggest US oil field; Polar Code welcome but need for constant revision; Arctic could boost US economy for decades, says NPC report; Goliat platform arrives in Barents Sea; Total turns to China for Yamal project financing

Arctic navigation skills

20 SUBSEA TECHNOLOGY Deep sea diving in Antarctica with the Icefin remotely operated vehicle

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 Adventure beckons: the rise in luxury tourism around the Arctic region

22 EMERGENCY PREPAREDNESS Key safety and accident prevention considerations for oil and gas companies working in ice-affected regions

26 JOINED UP THINKING New integrated seismic solutions for better exploration planning and decision making www.frontierenergy.info SPRING 2015 01

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EDITOR’S LETTER

FRAM* “The eyes of the world will be watching as the industry of today grapples with these very same challenges”

www.frontierenergy.info Editor Martin Clark martin@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.

It was 50 years ago that Norway first dipped its toes into the offshore business. On April 9, 1965, to be exact, the first licensing rules for the Norwegian shelf were laid down by royal decree. It was a move that would ultimately propel the country into one of the world's top oil and gas producers, a position that it comfortably occupies today.

We've come a long way since then. The global offshore business has transformed radically in the years since with technology opening new deep-water, and then ultra deep-water, fields in challenging basins worldwide, from Africa to Australia. What was once deemed impossible, or uneconomic, is now a reality. There's a famous saying by writer George Bernard Shaw: "People who say it cannot be done should not interrupt those who are doing it."

These same forces continue to shape the evolution of the industry, even in extreme climate zones such as the Arctic, a place where much of the world's undiscovered oil and gas wealth is said to be stored. Getting to grips with this potential requires great sensitivity and represents a formidable test for all concerned, however. Nonetheless, bitby-bit, it is a scenario that's becoming not only plausible, or possible, but probable too.

Norway is currently laying its first gas pipelines that will cross into the Arctic circle, the start of a new underwater infrastructure that could help unlock a whole new offshore region. Russia's Goliat project - the most northerly offshore oil development yet - is expected to be up and running this year. Off the coast of Alaska, Shell hopes to resume drilling in the Chukchi Sea later this summer. Plenty of others are looking to follow.

And yet, against this background, we hear that polar ice levels are receding, and that Arctic shipping is intensifying through previously ice-bound shipping lanes.

Simultaneously, innovation busts through many of the barriers that may have constrained Norway's oil pioneers 50 years ago. Ice-breaking technology, drilling, and environmental mitigation are all areas that have evolved massively in the decades since, paving the way for Arctic exploration.

Norway's modern day political leaders argue that the Arctic 'will have its day', despite the challenging economics posed by the fall in oil prices recently, a sentiment clearly echoed by the USA and Russia. Likewise, powerful industry voices such as ExxonMobil boss, Rex Tillerson, suggest that the technology is already in place and available to successfully tackle the myriad challenges posed by oil exploration and development in the far north region.

It would be wise to take note of our predecessors' actions before embarking on this journey. When the first Norwegian licensing rules were issued all those years ago, the goal was to ensure prudent exploration and extraction, as well as secure a sound financial return for the country. Fifty years on, it has yet to reach the halfway point of the resources it believes to be in place on the continental shelf.

The eyes of the world will be watching as the industry of today grapples with these very same challenges, but this time in the extreme sensitivities of the Arctic. A high profile Greenpeace campaign, boarding the ship carrying Shell's Polar Pioneer rig to its Chukchi drill site, shows the stakes are high. And any failings relating to safety or environmental protection will only intensify that glare. Yes, the times may have moved on, but it's imperative that all the lessons from the past are taken on as the industry takes its next steps forward into the far north.

Martin Clark, 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 SPRING 2015 03

NEWS

The Polar Pioneer rig has arrived in Alaska but Shell still faces challenges ahead

IN NUMBERS

11.8% Decline in investment in the Norwegian E&P industry for 2015 compared to 2014, according to SSB

117,000

metric tons The weight of the Dockwise Vanguard, which carried the Goliat platform from South Korea to the Barents Sea

America's largest oil fields are now south of the Canadian border

Shell sharpens drill-bit after Chukchi lease approved Shell's hopes of resuming drilling on its Chukchi Sea acreage have taken a big step forward after the Department of the Interior reaffirmed the controversial Lease Sale 193.

Officials once again approved the record-breaking Chukchi Sea lease sale held seven years ago, raising speculation that drilling is now getting closer.

After spending $2 billion on Chukchi leases, it's a significant investment already for Shell, which has acknowledged that it is keen to drill this year if allowed to do so.

Some of Shell's fleet is already in the Pacific Northwest, while oil spill equipment is now undergoing field tests in Alaskan waters.

A small band of Greenpeace activists climbed aboard one vessel (Blue Marlin) carrying a Shell rig (Polar Pioneer) as it was making its way across the ocean.

It's not a forgone conclusion, however.

The decision paves the way for the Bureau of Ocean Energy Management, an agency that oversees oil leasing and development in offshore federal territory, to conclude its review and make a decision on Shell's revised Chukchi Sea exploration plans.

"The execution of that plan remains contingent on achieving the necessary permits, legal certainty and Shell Alaska's own determination that we are prepared to explore safely and responsibly," Shell commented in a March 31 statement, following the DoI's decision.

The approval of the 2008 lease sale follows a previous record of decision issued in 2011.

Prudhoe Bay no longer biggest US oil field Alaska's Prudhoe Bay has slipped from first place to third in the list of America's top oil fields, according to a new report by the US' Energy Information Agency.

The two largest oil fields are named as two areas in Texas at the forefront of the country's shale oil revolution: Eagleville, in the state's’ Eagle Ford Shale Play, and the Spraberry Trend Area.

Prudhoe Bay lagged behind in terms of both reserves and production.

According to the report, Top 100 US Oil and Gas Fields, Prudhoe Bay's production averaged 79,080 million barrels in 2013, some distance behind Eagleville at 238,050 million barrels.

The EIA said the Spraberry Trend Area produced 99.78 million barrels in 2013.

First discovered in 1967, Prudhoe Bay helped inspire Alaska's oil boom and the construction of the trans-Alaskan oil pipeline.

The field held the number one spot in the last top 100 ranking which used data from 2009.

Kuparuk River was the only other Alaskan field to make it in the top 10 recording production in 2013 of 29,487 million barrels.

Other Alaskan oil fields (Milne Point and Alpine) also dropped positions in the new list, while the only one to buck the trend was Nikiutchuq, which jumped up to number 65 in the rankings.

The growth in marine traffic in the arctic has resulted in more reported incidents

The shipping industry has welcomed the recent arrival of the Polar Code which aims to curb risks from increased traffic in the Arctic and Antarctica, says a new report: the annual Shipping and Safety Review by Allianz Global Corporate & Specialty.

It suggests that greater traffic in the region has meant more incidents. Analysis shows there were 55 reported shipping incidents in Arctic Circle waters during 2014 including one total loss. There were just three in 2005.

"While the code addresses many safety issues, questions remain, particularly around crew training, vessel suitability and potential clean-up," the report states.

The Polar Code will need constant revision, it adds. "Any shipping problems encountered and best practices to employ should be outlined at the end of each season."

04 SPRING 2015 www.frontierenergy.info

Photos: Shell & iStock

Polar Code welcomed, but need for constant revision

NEWS

1,500 miles

DIstance traveled by a supply barge drifting around the Arctic since breaking free in bad weather last October. A GPS tracker was dropped onto the barge recording its journey from the Northwest Territories across the Yukon coast, across the Alaska coast and now near the Russian northeast coast.

A recovery is to be attempted in July.

$15 billion potential project financing required for Yamal LNG project

3

50 years

14.39 million sq km

April 9, 1965

Alaska's Prudhoe Bay slips to third (from first) in list of America's top oil fields

Sources: SSB, Dockwise, ADN, WSJ, EIA, Norwegian Petroleum Directorate, NSIDC

Arctic could boost US economy for decades, says NPC report A new study by the US' National Petroleum Council (NPC) says the development of the US arctic region could provide major economic and energy security benefits to the country for the next 35 years or more.

The 550-plus-page report, Arctic Potential: Realising the Promise of US Arctic Oil and Gas Resources, was approved by the NPC this week.

It found that the large Arctic oil potential of the US, similar in scale to Russia and larger than Canada and Norway, can be safely explored and developed with technologies in use today.

Decades of new production from the Arctic, which holds a significant portion of the world’s undiscovered conventional oil and natural gas, will play an increasingly important role in meeting future global energy needs, it said.

“The US is an arctic nation with broad and fundamental interests in the region,” said deputy energy secretary

Liz Sherwood-Randall.

If new offshore exploration drilling in Alaska starts now, and development continues into the 2030s and 2040s, US arctic production would help sustain domestic supplies as production of US shale oil and tight oil may decline in the Lower 48 States, according to the report, which cites US Energy Information Administration forecasts.

The report also said that there have been substantial recent technology and regulatory advancements to reduce the potential for and consequences of a spill, and that application of these technologies could improve environmental stewardship, enable safe extension of the Arctic drilling season, and reduce costs.

Rex W. Tillerson, chairman and CEO of ExxonMobil and study committee chair added: “We concluded that technology exists today to safely and responsibly develop the US arctic and is supported by nearly a century of experience in the region.”

Goliat platform arrives in Barents Sea The first oil field to come on stream in the Barents Sea took a step nearer recently, with the arrival of the mighty Goliat platform following its long voyage from a South Korean shipyard.

It will be the world’s most northerly offshore oil development.

The Goliat platform is deemed the most sophisticated cylindrical Floating, Production, Storage and Offloading (FPSO) facility ever built, with a production capacity of 100,000 bpd, and storage capacity of 1 million barrels of oil. It includes several engineering innovations, designed with the harsh Barents Sea weather conditions in mind.

It was carried by the Dockwise Vanguard, the world's largest heavy lift vessel.

Operator Eni Norge hopes to have the facility on stream this summer.

Arctic sea ice extent for March 2015, the lowest on satellite record

since Norway conducted its first licensing round, on

US oil executives have become increasingly bullish on arctic prospects

Total turns to China for Yamal project financing French oil giant Total is looking to Chinese banks to help it fund the $27 billion Yamal gas project in Russia.

The company may be seeking up to $15 billion from China, with Total's chief executive, Patrick Pouyanne, saying he wants the funding, in euros and yuan, in place this year.

In an interview with The Wall Street Journal, he said there was “a strong willingness to build the project financing” from Chinese financial institutions, although he admitted "it's not an easy task".

China National Petroleum Corporation (CNPC) and Russia's Novatek OAO – ADR are also partners in the upstream venture.

The project does not run afoul of Western sanctions on Russia over the Ukraine standoff but financing has clearly been made all the more complicated as a result. “We would have preferred to do it with dollars,” Pouyanne added.

The Yamal liquid natural gas (LNG) project, in Russia's Arctic region, will have a capacity of 16.5 million tons.

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ATLANTIC CANADA

Minister Darin King

Newfoundland and Labrador:

THE PATH TO THE ARCTIC A foreword by the Honourable Darin King, Minister of Business Tourism, Culture and Rural Development for Newfoundland and Labrador

W

hen Newfoundland and Labrador is described as the ‘path’ to the Arctic, it is done so using the fullness of the word - from the province’s strategic location to its world-class cold ocean expertise, infrastructure, and facilities.

As Canada’s most easterly province and extending north to the edge of the Arctic, Newfoundland and Labrador is ideally located along international shipping lanes and northern sea routes to connect with markets in the rest of Canada, the United States, Central and South America, Europe, Asia, and the Arctic.

Surrounded by the North Atlantic Ocean and uniquely positioned along Iceberg Alley, Newfoundland and Labrador has some of the coldest waters south of the Arctic Circle. Although not geographically located in the Arctic, centuries of thriving in Arctic-like conditions has nurtured a strong culture of innovation that is the genesis of the next generation of leading explorers and innovators.

Newfoundland and Labrador is the world’s cold ocean laboratory and ideal proving ground for solutions to technological and operational challenges in cold, harsh and ice-prone environments.

The province’s industry specialists are leading the way for safe and sustainable development in Arctic conditions.

As a modern economy with the infrastructure and business capability to support a variety of Arctic projects, Newfoundland and Labrador is a hub of business development that both supports and aggressively participates in the tactical expansion of the oil and gas sector. The

06 SPRING 2015 www.frontierenergy.info

province’s industry experts intuitively understand the challenges of working in what others may call harsh environments and are well versed in turning what others may see as challenges into opportunities and competitive advantages.

“With our strategic location on international shipping lanes and northern sea routes, accessible ports, strength in cold ocean research and development, and worldrenowned expertise in exploration and development of natural resources in Arcticlike conditions, Newfoundland and Labrador is clearly your Path to the Arctic.”

– The Honourable Darin King, Minister of Business Tourism, Culture and Rural Development

Newfoundland and Labrador accounts for 80% of Canada’s offshore petroleum production and one-third of its light crude, and has a total discovered oil reserve of 3.8 billion barrels. As home to Canada’s deepest well and the world’s largest oil discovery in 2013 (Flemish Pass Basin), Newfoundland and Labrador is certainly

well positioned for future growth. It is this potential for future growth, coupled with vast experience, inherent innovation, industrial infrastructure, and world-renowned expertise in the oil and gas sector that ideally positions Newfoundland and Labrador for future development in the Arctic.

Ranked as ninth (9th) in the world for research and development services and fifth (5th) in North America from a cost analysis perspective in KPMG’s 2014 Competitive Alternatives study, Newfoundland and Labrador is also an ideal location from a cost benefit perspective. It is where investment in this important sector will see significant return.

With this level of momentum, many global industry leaders have already invested and established operations in Newfoundland and Labrador, for many making the province their North Atlantic and North American base. Our investment proposition stems from where we’ve been, where we are and where we are positioning ourselves for future success. Newfoundland and Labrador proudly stands as the world’s cold ocean laboratory and the Path to the Arctic.

Newfoundland and Labrador is open for business and keen to work with global partners as the province expands its comprehensive R&D infrastructure, innovative technologies, and private and public investment opportunities to enable safe and sustainable development in the oil and gas sector. Come see for yourself when Newfoundland and Labrador hosts the 2016 Arctic Technology Conference (ATC), October 24-26, 2016.

ATLANTIC CANADA

Rising to the CHALLENGE

The Terra Nova FPSO, producing oil since 2002

Newfoundland and Labrador, home to 2016 Arctic Technology Conference, has the experience and expertise to lead oil and gas development in the Arctic

Photo: Suncor Energy Inc

N

ecessity, they say, is the mother of invention, and so it goes with Newfoundland and Labrador’s relationship with the sea. The necessity comes from the abundant natural resources that lie off the province’s shores.

Newfoundland and Labrador accounts for the vast majority of Canada’s offshore oil and gas activity, producing 80 per cent of the nation’s offshore petroleum and onethird of its light crude.

The invention is demonstrated in the three offshore projects already under the province’s belt: Hibernia (first oil in 1997), Terra Nova (first oil 2002), and White Rose (first oil 2005). Hebron (first oil planned for 2017) will soon make four.

The Hibernia platform was the first of its kind, designed to withstand the impact of a one million-tonne iceberg and the considerable forces of sea ice. Terra Nova brought about the development of a disconnectable turret that could be moved out of the way of incoming sea ice, as well as subsea excavations that protect subsea equipment from iceberg scour. The soon-to-be operational Hebron platform will become one of the world’s biggest float-over operations.

“Newfoundlanders and Labradorians are innovative and resourceful people, and that is reflected in our offshore oil and gas industry. Hibernia required bold and visionary thinking that challenged the skeptics, who wondered whether we could produce oil in an environment of seasonal ice, fog and sea scapes such as ours. We were a frontier, pushing the boundaries of possibility,” says the Honourable Paul Davis, Premier of Newfoundland and Labrador. “Since the success of Hibernia, we have forged ahead to adapt and overcome the challenges of operating in such an environment. In fact, the work we’ve done in our offshore oil and gas industry has put us decades ahead of the rest of the world when working in harsh

environments, similar to the Arctic.”

A mighty cluster of ocean technology companies, research facilities and educational institutions have emerged over the years to support the province’s offshore industry. Today, Newfoundland and Labrador is known worldwide for its expertise in ice, surveillance and management; underwater vehicle technology; marine simulation; geotechnical, ocean and environmental engineering; marine meteorological services; safety and training; and much more.

Memorial University is a worldleading centre of ocean technology, naval architecture and harsh environment engineering. The National Research Council is Canada’s premier research and technology organization, using the world’s longest ice tank along with numerical models to test marine vessels and structures for the world’s harshest environments. The Centre for Cold Ocean Research and Engineering is world renowned for its knowledge and expertise in developing techniques to mitigate risk through ice management and remote sensing.

Beyond this, Newfoundland and Labrador's ocean technology cluster features an abundance of dynamic businesses that are producing some of the most advanced technologies in the world.

High quality underwater cameras; 3D imaging and mapping; synthetic aperture sonar; simulation; satellite ice surveillance and mapping; remote sensor technology to name a few.

Newfoundland and Labrador is the World’s Cold Ocean Laboratory™, home to some of the world’s leading technology, operational minds and advanced facilities supporting natural resource development in cold and harsh environments.

“The environment we have here has a lot of the same characteristics as the Arctic, and we’re in a perfect proving ground for the technologies needed to move oil and gas development into the

Arctic, “ says Bob Cadigan, President and CEO of Newfoundland and Labrador Oil and Gas Industries Association.

Today new opportunities are emerging in the shape of immense untapped resources to the north — 1670 trillion cubic feet of natural gas, 44 billion barrels of natural gas liquids and 90 billion barrels of oil yet to be discovered in Arctic waters, according to the 2008 United States Geological Survey findings.

“Newfoundland and Labrador has become synonymous with offshore oil and gas exploration and production in challenging environments - making the most of our strategic location on international shipping lanes and northern sea routes, our accessible ports, our strength in cold ocean research and development, and world-renowned expertise in Arctic-like conditions.

With our mature offshore supply and service industry of over 600 companies supporting successful operation in challenging conditions - Newfoundland and Labrador truly is The Path to the Arctic,” says The Honorable Darin King, Minister of Business Tourism, Culture and Rural Development.

As the world looks increasingly to the North, Newfoundland and Labrador is ideally positioned to play a key role in future Arctic exploration and development. As the Path to the Arctic, the province is primed and ready to put its vast experience and well-honed expertise to use in this frigid new frontier.

That is one reason St. John’s was chosen as the first North American location to host the Arctic Technology Conference outside of Houston. Discover for yourself all Newfoundland and Labrador offers in opening the new frontier. Join us for the OTC Arctic Technology Conference, October 24-26, 2016.

www.frontierenergy.info SPRING 2015 07

ATLANTIC CANADA

Engineering consultancy and design company INTECSEA has long identified harsh environments and ice-affected regions as important areas of interest

I

ntecsea engineers have now gained several years of expertise in cold weather and Arctic conditions for the design and construction of oil and gas production facilities located in these remote, hostile environments. Despite falling oil prices, the company remains committed to research and development, says Mike Paulin, Operations Director, Canada at INTECSEA. Based in St John’s, Newfoundland and Labrador, Mike says pipeline design for Arctic conditions faces unique challenges. These include complex analysis of the potential effects of Arcticspecific environmental loadings (ice scour, strudel current scour, permafrost) and the effective use of limit state design for extreme loading conditions, for example. The company’s historic expertise in floating systems in deepwater environments is now being deployed in developing floating solutions for Arctic and similarly ice-covered waters, says Mike. While the slide in global oil prices has perhaps prolonged the timeline associated with some Arctic projects, there are a number of long term technology JIPs in progress and licensing rounds continue being rolled out, Mike notes.

INTECSEA is currently looking to start-up new JIPs applicable to Arctic and harsh environments, including: • Development of a low motion FPSO for wet and dry tree applications in remote deepwater fields with persistent swell and harsh environment • INTECSEA, working with Lockheed Martin and UTEC Geomarine, is launching a joint industry project (JIP) focused on marine micropile technology • Evaluation of duplex stainless steel HP/HT subsea applications

08 SPRING 2015 www.frontierenergy.info

The company has engineered the three pipeline systems in the Alaskan Beaufort Sea using innovative design approaches and is presently supporting the energy industry as planned conventional and subsea field developments move deeper into the Arctic Ocean. Advancements in subsea technology and monitoring in iceinfested waters will be key to developing discoveries across the region, all offering safer operating environments, he says.

Mike points to the work being led by Petroleum Research Newfoundland and Labrador (PRNL) as highlighting trends in Arctic technology. In early 2015, PRNL issued a ‘Call for Proposals’ seeking ideas that address research themes related to ‘Asset Integrity in Harsh Marine Environments’ with the aim of better understanding the nature and extent of damage to offshore floating, fixed, and subsea infrastructure due to corrosion, wear, and fatigue; to investigate alternatives to existing materials and methods which can better withstand operations in harsh environments; and, to develop innovative technologies that will help improve production assurance, enable inspection without shutdown, and enhance asset life. Further information is available from http://pr-ac.ca.

As the oil price slipped below the $100 per barrel mark, activity levels decreased across the upstream sector, but Atlantic Canada has benefited from the interest of Norway’s Statoil and Canada’s Husky Energy’s interest in the Bay du Nord prospect (see separate story).

In addition, ExxonMobil’s Hebron field is expected to come on stream in 2017 and will pump oil via a gravity-based structure (GBS) that is currently being constructed in Bull Arm, Trinity Bay in Newfoundland.

Discovered in 1980, first oil is on schedule to be produced before the end of 2017.

Offshore pipelines in Arctic regions are subjected to a host of unique, potentially extreme, environmental loading conditions. As such there is generally a requirement for them 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, and upheaval buckling.

INTECSEA are at the forefront of design and optimization of Arctic pipelines. Evaluation of the unique environmental loading conditions and the use of a limit state design philosophy have been used successfully by the company in these and other Arctic pipeline systems currently under development.

Due to constructability constraints in the Arctic, systems with multiple pipelines have been bundled together before being installed in the trench. In the past, these bundles have been modelled as separate pipelines or equivalent pipelines to represent the bundle, but recent designs have involved analyzing the system as a whole including the combined weights and stiffness of the individual pipes and assessing the pipe-soil interactions of the bundle.

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.

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 Select stage of projects where multiple options may be quickly assessed to determine which options should be carried forward to future stages of design, says the company. The models can be set up for each unique Arctic environmental loading condition for a complete solution.

For more information on INTECSEA, visit the company’s website at www.intecsea. com, or connect with INTECSEA on Twitter, LinkedIn, Oilpro and YouTube.

Photo: Shutterstock

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ATLANTIC CANADA

C-NLOPB calls for bids

A

ctivity throughout Atlantic Canada’s iceberg alley continues apace with several world-class developments producing oil and gas while engineering firsts have included the deployment of the first large GBS platform for sub-Arctic deployment. Also the Terra Nova field, which came onstream in 2002 was the first sub-Arctic newbuild FPSO to be commissioned in such inhospitable waters continues to produce, its disconnectable internal turret used to evade approaching icebergs of over 100,000 tonnes.

Back in 2005, the White Rose field was developed via the newbuild Sea Rose FPSO with its own disconnectable turret, while both Terra Nova and White Rose make extensive use of subsea equipment in protective Glory Holes to mitigate iceberg scour.

While North Amethyst, Hibernia South & West, and the White Rose Extension fields use, or will be developed via, subsea tieback to existing facilities.

These success stories have encouraged Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) to maintain its offering of new acreage for explorers despite prevailing oil price uncertainty.

C-NLOPB’s lates call for bids for exploratory licenses in the Flemish Pass marks the first call issued under a newly enacted scheduled land tenure regime.

The area covers over 2.5-million hectares offshore Newfoundland near recent finds by partners Statoil and Husky Energy in the Jeanne d'Arc Basin, which is already producing through the Hibernia, Terra Nova and White Rose fields.

Eleven licenses up for grabs are outside the 200-mile limit. The minimum bid for each parcel is C$10-million.

The province’s Natural Resources minister Derrick Dalley says the new land

Hibernia: the gravity-based structure is built to withstand an iceberg

tenure regime, “is a huge step forward”, and based on global best practices.

Dalley adds, “the process gives exploration companies more time to evaluate prospects, conduct geoscientific work and prepare their bid.

“The new regime is already creating strong interest among present operators in the offshore and is proving beneficial to companies contemplating doing business in Newfoundland and Labrador”.

Bids are due by noon on November 12, 2015. The call for bids NL15-01EN (Eastern Newfoundland Region) consists of 11 parcels and a total of 2,581,655 hectares.

The sole criterion for selecting a winning bid will be the total amount of money the bidder commits to spend on exploration of the parcel during Period I (the first period of a nine-year licence), says C-NOLPB. The minimum bid for the parcel offered is C$10 million ($7.9 million) in work commitments.

The C-NLOPB offshore area covers over 1.8 million km2 and includes over 20 identified offshore sedimentary basins.

Exploration drilling has been carried almost every year since 1966 using the drillship Glomar Sirte with the peak recorded in the early 2000s, with 2002 recording 25 exploration, delineation and development wells. Last year saw three exploration and eight delineation wells completed.

A major discovery was made in 1979 by US oil major Chevron with its Hibernia P-15 well, spudded by the Glomar Atlantic drillship. Since the discovery of the Hibernia field, other world-class discoveries have been made including the White Rose; Terra Nova, and Hebron/

Ben Nevis areas. Hebron, Activity in 2016, there is expected to be a second call for bids in Eastern Newfoundland and high activity in eastern Newfoundland, northeast of the mature Jeanne d’Arc basin while low activity is predicted in the Labrador North, Labrador South, South-Eastern Newfoundland and Southern Newfoundland. In 2017, the C-NLOPB is expected to issue a call for bids for Labrador South and for a thirdround in Eastern Newfoundland.

Craig Rowe, director of exploration at C-NLOPB says that there will be a continued increase in geophysical data acquisition, both exclusive and speculative; an extensive amount of exploratory drilling and more Call for Bids in highly prospective offshore properties. To date, the organisation has issued 33 exploration, 54 significant discovery and 11 production licences.

The C-NLOB’s offshore environmental record reports to the end of 2014, 1,142 barrels of crude oil had been reported spilt from offshore operations with a significant 6,000 litre spill at Hibernia in late December 2013 remains under investigation by the authority. To date, 401 wells have been spudded since the 1966 including 155 exploration wells.

Nineteen have been drilled in waters deeper that 500 metres. Production wells have produced 1.5bn barrels of oil from the four projects Hibernia, Terra Nova, White Rose and North Amethyst.

Further detailed information about the 2015 Call for Bids is available at www.cnlogpb.ca

Canada’s Offshore Industry Regulatory & Government Bodies C-NLOPB Canada-Newfoundland and Labrador Offshore Petroleum Board (www.cnlopb.ca) C-NSOPB Canada-Nova Scotia Offshore Petroleum Board (www.cnsopb.ns.ca) NEB

10 SPRING 2015 www.frontierenergy.info

National Energy Board (www.neb-one.gc.ca)

Photo: Suncor Energy Inc

The Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) has released details of the first call for bids round in the Eastern Newfoundland region

ATLANTIC CANADA

Statoil has plenty of ice experience. Here, the Aker Barents drilling rig is working for the company in the Barents Sea

Statoil boosts ATLANTIC ACTIVITY Norwegian oil giant Statoil see opportunity offshore Canada as it continues to acquire exploration licences

Photo: Harald Pettersen / Statoil

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he oil industry is pushing into ever more technically and geopolitically challenging prospects, many of which are facing particularly high capital costs.

In common with many unconventional developments such as oil sands in Canada, extra heavy oil in Venezuela, offshore projects in the Arctic are expected to be uneconomic under $90/bbl, developments offshore Canada require a relatively high oil price to work economically, say analysts at Infield Systems. “Construction activity is not expected to be delayed over the coming five year period with investment decisions already made (offshore east coast Canada)”, says Infield. There are believed to be around 27 potential projects in and around offshore east coast Canada with reserves estimate at 975m bbl (oil); 276m bbl (condensate) and 9,575 BCF of gas.

Norwegian oil company Statoil is a major explorer and operator offshore Newfoundland and has steadily acquired new exploration licences in the area since arriving in the region in 1997.

Currently, Statoil is operator of four Significant Discovery Licences (SDLs) and seven Exploration Licences (ELs) covering a total area of over 11,000 km2. It is also a partner in four ELs. Statoil’s discovery on the Bay du Nord prospect (EL1112), located 500 kilometres

northeast of St. John’s, is the second find for the company offshore Newfoundland made in 2013. Earlier that year June, a discovery was made at the Harpoon prospect, which is located some 10 kilometres from Bay du Nord. Statoil is the operator of Bay du Nord and Harpoon with a 65% interest.

Husky Energy has a 35% interest. The water depth is moderate (1,100m), the reservoir quality is good, and the oil being pumped is a light crude with 34°API. The company is also partner in the Hibernia and Terra Nova fields, as well as partner in the Hebron (9.7%) and the Hibernia Southern Extension (10.54%) field development.

“The success of Bay du Nord is the result of an ambitious and targeted drilling campaign in the Flemish Pass Basin,” said Statoil Exploration executive vice president Tim Dodson. “This discovery is very encouraging.”

Dodson explains that, “The Flemish Pass Basin is a strategic part of Statoil’s global exploration portfolio”.

The Bay du Nord and Harpoon wells were drilled by the semi-submersible rig West Aquarius, both in approximately 1,100 metres of water.

Bay du Nord is located about 20 kilometres south of Statoil’s Mizzen discovery. The Mizzen discovery, announced in 2010, is estimated to hold between 100-200 million barrels of oil.

When asked about the risks of exploring in such inhospitable, northern and Arctic regions, Dan Tuppen, vice president Barents Sea exploration, said recently: “The Barents Sea represents a large opportunity in an area with many discoveries. If we are to maintain our success and find new resources, then we have to be constantly on the hunt for the best prospects.

“Right now some of those are in the Barents Sea and we have the experience and capability to drill here.

“The experience we gain in the Barents Sea will also be useful for our future operations in other parts of the Arctic.

Just as we are drawing on the knowledge and expertise gained in Canada when (we were) planning for the (Summer 2015) exploration programme.”

Mr Tuppen added that Statoil, “recognise that the further north we go, the greater the challenges become.

However, I wish to emphasise that since we are planning to drill in the summer, the area in question will be ice-free. So the ice is not really the challenge, but rather the considerable distance from land and the associated logistics that complicate the operation”.

Here we have learned a great deal from Newfoundland, Canada, and we also operated far from shore in a cold climate when we made the Bay du Nord discovery, he concluded.

www.frontierenergy.info SPRING 2015 11

ATLANTIC CANADA

Atlantic Canada's producing fields Field name & location

Partners (operator in bold)

Discovered

Onstream

Reserves Oil million bbl

Reserves Cond million bbl

Gas Reserves (BCF)

Water Depth (metres)

Development Type

Notes

Hibernia Northeastern Grand Banks, 315 km southeast of St John’s, NL

ExxonMobil (33.125%), Chevron (26.875%), Suncor (20%), Canada Hibernia Holding Corp (8.5%), Murphy Oil (6.5%), Statoil (5%)

1979

1997

1042

202

1796

78

Fixed production platform and subsea

Average daily production 2015: 115,000 bbls

Sable Offshore Energy Project Scotian Shelf, 200 km off Nova Scotia

ExxonMobil (50.8%), Shell (31.3%), Imperial Oil (9%) Pengrowth Corp (8.4%), Mosbacher (0.5%)

1972

1999

0

n/a

85

20 - 80

Fixed production platform and subsea

Average daily production 2015:

Terra Nova Grand Banks, 350 km eastsoutheast of St. John's, NL

Petro-Canada (33.99%), ExxonMobil (22%), Statoil (15%), Husky Oil (12.51%), Murphy Oil (12%), Mosbacher (3.5%), Chevron (1%)

1984

2002

431

5

64

95

Floating production

Average daily production 2015: 72,000 bbls

White Rose Grand Banks, 350 km east of St John’s, NL

Husky Energy, (72.5%), Suncor (27.5%)

1984

2005

283

0

123

123

Floating production

Average daily production 2015:32,000

Deep Panuke 250 km southeast of Halifax, Nova Scotia

EnCana

1998

2013

0

n/a

508

45

Fixed production platform and subsea

Average daily production 2015:

Sources: NOIA, companies, Infield Systems, C-NLOPB

The work being done at Memorial University (MUN) is “world class, particularly in oil and gas exploration and production in Arctic and harsh environments,” MUN President Gary Kachanoski says.

Government and private sector money has been pledged and given to the St John’s, Newfoundland-based university to support the development of technologies critical to oil and gas developments in coldwater environments.

The Faculty of Engineering is gaining a world class reputation for its research into operating in ice-affected waters with Canadian oil firm Husky Energy providing C$2.5 million ($1.98m) to support a Chair in Oil and Gas Research with a focus on Arctic environments, while Scotlandheadquartered Wood Group is donating $500,000 to renew support for a Chair in Arctic and Harsh Environment Engineering.

Another company investing heavily into the university is C-CORE, a Canadabased engineering research and development firm. In turn, C-CORE hosts LOOKNorth, a Centre of Excellence for Commercialisation and Research that received C$7.1 million in federal funding to promote research in applied technologies for Arctic resource development.

12 SPRING 2015 www.frontierenergy.info

MUN is a leading Arctic technology centre

Photo: Claude Daley

Investment flows into MUN

ATLANTIC CANADA

Taking STePS2 into the Arctic

U

niversity research projects such as Sustainable Technology for Polar Ships and Structures (STePS2) are a valuable and essential research asset to creating a knowledge hub for scientists and engineers working in sectors as varied as energy, logistics and shipping.

Current research being undertaken at Memorial University, in the coastal city and capital of Newfoundland & Labrador, St Johns, will put the Arctic and ice-affected regions at its heart.

An important project ongoing at Memorial is the Sustainable Technology for Polar Ships and Structures (STePS2).

STePS2 is researching ice-structure interaction that might play a significant role in the way companies and individuals approach working in the Arctic. The researchers of STePS2 are working to improve the understanding of high-energy collisions between marine ice and steel structures, while gaining an improved knowledge of the resistance and/or failure characteristics of man-made structures under high loads from ice.

The project aims to develop validated practical design tools that will permit the safer design and assessment of ships and offshore structures for Arctic conditions, says Memorial.

Claude Daley, professor in the Faculty of Engineering and Applied Science at Memorial University, is

Current research at Memorial University will put the Arctic at its heart principal researcher on the STePS2 project. He and a team of faculty along with graduate and undergraduate student researchers have been conducting an extensive set of laboratory experiments covering ice crushing, structural response to ice loads and the hydrodynamics of submerged ice blocks.

“These experiments are being used to validate high-performance computer (HPC) models. The HPC models, developed on several software platforms, are then used to model and examine full-scale, ice-loading scenarios on both ships and structures, says Dr. Daley, speaking recently. "With the experience and results from these HPC scenario simulations, we can create simple and robust design and assessment tools that can be used by industry."

STePS2 is a five-year project funded by the ACOA's Atlantic Innovation Fund (AIF), the Research & Development Corporation of Newfoundland and Labrador (RDC), Husky Energy, American Bureau of Shipping (ABS), Rolls Royce Marine, Samsung Heavy Industries, BMT Fleet Technology, the Natural Sciences and Engineering Research Council of Canada (NSERC) and Mathematics of Information Technology and Complex Systems (MITACS). www.mun.ca

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UK & ARCTIC

The UK is the world's most northerly 'non-Arctic' country

UK MAKES A PLAY FOR GREATER ARCTIC ROLE

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new report from the UK is calling for greater engagement with the Arctic region, in areas ranging from the energy sector to environmental stewardship. The UK is the northernmost country below the Arctic Circle.

It comes at a critical juncture. The report concludes that it is a question of ‘when’, rather than ‘if’, the Arctic will be substantially free of sea ice in the summer, opening the door for more shipping and other economic activities.

Scientific studies already show sea ice to be at its lowest ever levels, meaning an unprecedented responsibility on the shoulders of the current generation to get things right.

The report, Responding To A Changing Arctic, comes from the House of Lords Arctic Committee and will now be forwarded to the UK government for a formal response. It could shape future government policy to the region in areas 14 SPRING 2015 www.frontierenergy.info

such as oil and gas. The UK is a leading light in the world’s offshore industry following its pioneering work in the North Sea. The report also flags up other key industries such as shipping, finance and fisheries.

This is a part of the world where things really are changing; the question is what part should the UK play in all of this?

The report’s lead author, Lord Robin Teverson, says the context is the huge shifts that are currently taking place in the Arctic. “This is a part of the world where things really are changing; the question is what part should the UK play in all of this? There is a real danger that

we might fall behind,” he told FE. Teverson highlights growing interest from other non-Arctic states including heavyweight economies like Japan, India and China. And the report concludes that the UK should follow the example of other non-Arctic nations such as France, Singapore and Japan in appointing a dedicated ambassador for the region.

It’s more than pure commercially driven interests at stake though. Yes, the idea is to make sure Britain’s commercial interests are aligned, but that also applies to the universities and scientific research taking place, as well as diplomacy in the region.

“One way to do this, and to raise our profile, and effectively co-ordinate our Arctic approach, is to have an Arctic ambassador,” said Teverson. The UK may not be the first in this regard, but it certainly marks a greater degree of seriousness in the country’s engagement with the region.

It also comes at a time of heightened

Photos: iStock & House of Lords 2015 / Chris Moyse

The UK, the northernmost country below the Arctic Circle, needs to up its game or risk being ‘outmanoeuvred’ in the region by other states, a new report says.

Frontier Energy speaks to the report’s chief author, Lord Robin Teverson, to find out more

UK & ARCTIC

Lord Teverson: Britain must engage with a changing Arctic

states: “The recent fall in world energy geo-poltical tension both in the region prices provides a window of opportunity and elsewhere. “Russia rather tore up the for thorough examination of whether international rule book over the Crimea and Ukraine while we were going through oil and gas extraction can be done safely and responsibly in ice-affected Arctic this,” said Teverson. Military activity is waters, and for considering whether on the increase, both from Russia and any international others, although, standards on he adds, “nothing where drilling can like the level it was be undertaken in during the Cold The recent fall in world energy relation to sea ice War”. Still, it’s prices provides a window of can be agreed.” a further driver opportunity for thorough Some behind the decision consideration to engage more examination of whether oil should also be formally with and gas extraction can be done given to the the Arctic. And, safely and responsibly in diverse landscape he notes, there of the Arctic, as remain plenty of ice-affected Arctic waters well. Areas where areas of similarity exploration is between Russia already underway and the West. The are, in many ways, simply extensions of preservation of Russia’s long northern existing offshore producing regions, such coastline would certainly benefit from a as Norway’s push further north. It is in strong rule of law. “We shouldn’t get too the ice affected areas that present the paranoid about this.”

In the oil sector, Teverson is well aware more real challenge.

“With the ice free areas there’s of the Arctic’s long-term potential. It probably not a lot of difference from is estimated that 30% of the world’s the North Sea, but in more difficult undiscovered, recoverable gas and areas there needs to be a proper regime 13% of undiscovered, recoverable oil supplies are located in the Arctic. But the in place. The downturn gives breathing space for us to get the policy right and be extraction of these resources presents a more cautious,” said Teverson. In these daunting technical, environmental and ultra sensitive areas, he sees “no chance costly challenge. of production for some while”.

The report highlighted the alarming At the same time, there’s no way to prospect of additional global warming stop the oil and gas industry from taking arising from the release of methane an interest in an area where so much from the Arctic seabed and melting potential exists. It’s a long game, though, permafrost, and other disturbing climate and one with a lot of uncertainties. “It’s feedback loops. going to be a long way off and, by that Perhaps, Teverson suggests, the slide time, who knows what’s going to happen in oil prices over the past year or so may in terms of decarbonizing the world’s actually turn out to be a blessing, buying energy supply.” all side valuable time. In the report, it

Still, he does believe that development in the Arctic is going to happen”, but that we shouldn’t be afraid of it either, so long as it is managed correctly. This is where organisations like the Arctic Council, and the newly-formed Arctic Economic Council, will play a crucial role. “Really serious production is a fair way off,” he added. “The Arctic is not going to be teeming with ships and oil rigs anytime soon.”

Responding to a changing Arctic The UK report makes recommendations in a range of areas including: • A moratorium on fishing in the high seas area of the central Arctic Ocean, at least until a recognised management regime for the area, based on sound science, is agreed • The appointment of a UK ambassador for the Arctic • The UK government should urgently make a commitment to substantially increase funding for British Arctic science through the Research Councils • The EU should be granted observer status at the Arctic Council as the case for its inclusion is ‘overwhelming’ • Every effort should be made to insulate Arctic co-operation from geopolitical tensions arising in other parts of the world because there is a global interest in protecting this unusually vulnerable environment.

www.frontierenergy.info SPRING 2015 15

FRONTIER DRILLING

Across the Arctic regions, operators have long encountered problems drilling through the permafrost, a consequence of the last ice age. But there are solutions. Stanislav Kulikov, Dmitry Priymachenko and Pavel Shilkin of Weatherford Russia, outline a new approach that can reduce cost and improve efficiency

I

Frontier drilling: overdrive with DwC

n northern Arctic areas including Russia, Canada, and Alaska, operators encounter problems drilling through the permafrost to set and cement surface casing at a suitable depth to provide an adequate casing seat. Permafrost—a consequence of the last ice age—results when the permanent subterranean temperature is below the freezing point of the formation water, which is typically fresh.

Over time, the base of the permafrost has become shallower. Nevertheless, the contrast between the ice content and other sedimentary deposits creates hole instability problems when thawing occurs during drilling. The longer the formation is exposed to thawing, the more the resultant hole instability can affect drilling progress. Use of standard drilling processes can result in significant nonproductive time (NPT) in this environment because of excessive thawing and consequent problems with setting and cementing the surface casing at the required depth.

DRILLING THROUGH

THE PERMAFROST

16 SPRING 2015 www.frontierenergy.info

When using standard drilling methods with drillpipe, the time occupied by reaming operations, circulating clean, pulling out of the hole, running the surface casing, and cementing it in place can extend the thawing process, increase NPT, and add substantial operational cost. The process requires keeping the drilling fluid temperature as low as possible to minimize thawing; but the longer the well construction process, the more wellbore instability can impact operating cost.

To minimize costs, a different approach to the drilling process

Images: Weatherford

Permafrost Drilling Operations

FRONTIER DRILLING

is needed. An operator in the Bovanenkovskoye field in the YamaloNenets autonomous area of Russia decided to try using drilling-with-casing (DwC) techniques to minimize thawing.

Drilling with Casing The DwC method has been used elsewhere for some time, primarily in multi-well offshore platform applications and for drilling through and isolating lost circulation formations where the “plastering effect,” caused by the proximity of the drillstring to the wellbore, provides for hole maintenance capabilities. The DwC method uses casing as the drillstring so that when total depth is reached, the well can be circulated bottoms up and the cementing process can begin immediately.

In 2008 in this Arctic field, which currently produces some 115 billion m³ of natural gas annually, a trial program was performed using DwC techniques to drill and set the surface casing in six wells.

To do so, the drillstring consisted of the following components (see Fig. 1): • A 393.7-mm (15 1/2-in.) drillable casing bit with PDC cutting structure • A double-valve stab-in float collar 323.9-mm (12 3/4-in.) 51.5-lb/ft casing as the drillstring • A modified spear to make connection between the top drive spindle and the casing and to reduce connection time Operational Results The following were main objectives of the six-well trial: • Evaluate the use of DwC methods to adequately isolate the permafrost • Provide a high rate of penetration while maintaining hole stability • Reduce the time the wellbore is exposed to thawing • Reduce or eliminate NPT • Reduce fluid losses in the permafrost section • Achieve acceptable cement bond Each of the six wells was successfully drilled in a single trip in less than 2 days with minimal fluid losses and minimal hole stability issues. The casing was cemented at the target depth without NPT. The first well was drilled to 442 m (1,351 ft) and the second and third to 453 m (1,486 ft) with an overall rate of penetration of 14.6 m/h (48 ft/h). For one subsequent well the drillstring was equipped with heavy-duty centralizers, whereby the toolstring body cannot rotate

Drillers are responding to the unique challenges of the permafrost

Permafrost – a consequence of the last ice age – results when the permanent subterranean temperature is below the freezing point of the formation water, which is typically fresh

relative to the casing. That well was drilled to a depth of 450 m (1,476 ft) at an ROP of 16 m/h (52.5 ft/h). The overall result of the six-well trial was a saving of 8 days of rig time at an average cost saving of US$112,000 per well.

Lessons learned During the trial several problems were encountered and answers for fixing them were determined: • The drilling crew’s lack of experience with DwC procedures resulted initially in extended equipment assembly time.

However, as the crew became familiar with the method and pre-assembled much of the drilling assembly, the pace of operations improved.

• Issues with the drilling fluid, including the formation of foam and high colloidal and sand content, impaired circulation. The eventual use of adequate solids control equipment addressed this effectively.

• The colloidal content caused bit balling at the nozzles, which was subsequently addressed with adequate sizing of the mud treating facility.

Revision of the nozzle configuration to optimize hydraulic horsepower at the bit subsequently addressed this problem.

By including these lessons in the modified procedures, the use of DwC was fine-tuned and optimized for the given conditions.

Conclusion This pilot test of six wells was very successful and achieved all goals that were identified. The use of DwC techniques in this permafrost application essentially eliminated the hole instability challenges encountered with conventional drilling methods. In the harsh conditions prevalent in Arctic Russia, drilling and casing the frozen intervals in a single trip using DwC techniques is now common to eliminate hole instability problems and NPT while reducing operational costs.

Figure 1: Comparison table showing DwC results

www.frontierenergy.info SPRING 2015 17

ICE NAVIGATION

Room with a view: Inside the high tech environment of one of Aker Arctic's ice training simulators

Virtual reality:

ICE SIMULATION

18 SPRING 2015 www.frontierenergy.info

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iminishing ice cover not simulators with ice operation capability. only means there’s increased Even experienced operators need shipping in the polar regions it training as ice operation skills are like also means fewer opportunities for crew driving in the winter time - if you don't to get real experience of ice operations. practice you will lose touch. Simulators are While environmental groups have made a good tool to freshen the dusted skills. proposals to make Modern icethe Polar waters breaking ship a sanctuary, designs with Simulators offer a safe according to the azimuthing law of the sea thrusters and controlled way to learn (the UNCLOS require different operational skills with agreement) ships operational different types of ships are free to sail in practices than these international the traditional waters. This means shaft line vessels. there are now more crew sailing in the Growing ship size means a growing Arctic and Antarctic waters with little need for training. It is not wise to try to or no experience of operating in ice, operate a large cargo vessel on the same creating an urgent need to provide crew principles as smaller vessels let alone with training opportunities in bridge icebreakers. Simulators offer a safe and

Photo: Aker Arctic

Understanding ice navigation through the use of high tech simulators has benefits far beyond the oil industry, helping shippers and others to prepare for challenges long before they reach the Arctic.

Aker Arctic’s full mission bridge simulator for Arctic operations is helping to do just that.

By Jorma Koponen and Arto Uuskallio of Aker Arctic

ICE NAVIGATION

controlled way to learn operational skills with different types of ships.

Requirements of safety and risk elimination are top priorities in the Arctic and Antarctic waters. Even though simulators cannot be used to evaluate and mitigate all the risks that are involved in Arctic shipping, they can be used to train the crew to understand, how the ship is behaving in various ice conditions. This in turn gives the crew the opportunity to evaluate the more general risks that emerge from the ice conditions and how they will develop rather than focusing their attention on the routine operation of the vessel in the ice field With ice simulators, operations in ice can be simulated and the vessel’s behaviour practiced in advance to help reduce the risks of accidents. Simulators also give the possibility to train for abnormal operational situations, such as, machinery malfunction or rare ice situations that can be dangerous if not handled correctly.

Therefore the limitations of simulators needs to be understood well. Typically simulators cannot be used to recognise or predict the risks that emerge from changing weather conditions, which may cause, for example, unexpected ice compression and damage to the vessel.

These kind of phenomena are specific to the geographical area, where operations are taking place and risk mitigation can require years of practice from an experienced ship captain. Indeed, a skillful captain can sometimes get out of such situations, whereas an experienced captain wouldn’t get into them in the first place.

An effective ice simulator has to be able to realistically simulate a vessel’s behaviour in a variety ice conditions. The visual image and the radar display of the ice field has to be realistic and match the vessel response. An experienced captain can read the ice field and use the radar image to find the easiest path through the ice field. If this is not modelled correctly, the simulator will teach the ship operators incorrect practices, increasing the risk of the operation.

Requirements for ice simulators differ also in another respect. Ice has a longer memory than water in liquid form. This means that information about the broken channel has to be stored in the simulator memory and be visible in the radar screen so that other vessels can use the

Training room: Safe navigation through Arctic waters requires highly skilled operators

and our task is to add features like: ice broken channel to get an easier passage compression, fracture of the ice floes, through the ice. icebreaker notch towing operations.

Ships also interact with each other more The radar function is also unique to in ice than in open water, whether it be the ice simulator. When a vessel navigates an icebreaker cutting a cargo vessel loose in an ice field, from a compressive the radar shows ice field or an the tracks or the icebreaker towing a They can be used to train openings in the ice vessel through the field exactly as in ice field in either the crew to understand, how real life. This is a close tow or at a the ship is behaving in various valuable feature distance. Simulators since the radar is can also be used to ice conditions an important tool design fairways and when the operator harbours, thereby determinates where to navigate and tries reducing investment costs and ensuring to find the most safe and economical actual vessel operations run reliably and route through an ice field. on schedule.

As a result our simulator is an important All the requirements above mean tool for planning, training and studying. that in order to be able to develop a Because the visual choices in our ice realistic simulator, there has to be an understanding of the behavior of different simulator are realistic, it becomes easy to use and trust. The cost for using the ice vessels in various ice fields. It also simulator is low in comparison with all the requires an understanding of the physical possibilities it offers in increased safety and phenomenon involved in icebreaking preventing accidents in winter navigation. and practical knowledge of the ship Aker Arctic can now offer its clients operations in real ice conditions. the entire package: from planning and Aker Arctic takes the development designing to testing and training. And of our bridge simulator very seriously. most of it can actually be done before The ice simulator is meant to be used constructing the vessel when plans can by multiple users including oil & gas still be changed. This is a new possibility, companies, for maritime training, which greatly reduces the monetary risk shipowners and operators, manufacturers of investment. of ship equipment, designers, and the Certainly simulators have their mining industry. restrictions as the ice conditions are Ice loads are calculated based on actual pre-determined. It’s important therefore, hull geometry, ice conditions around that to minimise the risks involved in the ship, and vessel motions. Multiple Arctic operations, tactical and close range calculation models take into account navigation in the simulator is backed by different ice types, line loads (level ice) an experienced captain who understands and pressure loads (brash ice, ridges), how the ice situation in the operational with verification through model tests and full scale measurements. The ice simulator area can change and the possible risks of those changed ice conditions. is the subject of ongoing development, www.frontierenergy.info SPRING 2015 19

SUBSEA TECHNOLOGY

DEEP SEA DIVING IN ANTARCTICA

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t sounds and looks like something out of a James Bond movie, but Icefin is very real. To the untrained eye, it looks like a torpedo or a missile. In fact, it’s a first-of-its-kind robotic vehicle that recently captured eerie footage of an active sea floor teeming with life, deep under Antarctica’s Ross Ice Shelf.

It’s an impossible prospect for any film crew, but not for this state-of-the-art robot. The ROV was deployed and later retrieved through a tiny hole in the ice, measuring just 12 inches wide. Bore holes are often drilled on Antarctica for ocean moorings and sediment sampling.

From there, Icefin was lowered through a further 20 metres of solid ice before heading off through another 500 metres of water before reaching the sea floor. There, its footage revealed a huge variety of life including sea stars, sponges and anemones.

Traditional underwater vehicles deployed on Antarctica are either ‘roving eyes’ because they carry only a camera, or much larger vehicles that are deployed in the water on the edge of the ice shelf.

The ROV is the creation of a team of scientists and engineers from the Georgia Institute of Technology in the USA, which assembled the unmanned, underwater vehicle on Antarctica. Experts believe the probe could one day help in the search for life on other planets, starting with Europa, a moon of Jupiter (Antarctica’s icy oceans are remarkably similar to Europa’s icecapped oceans). Icefin was deployed as a part of the Sub Ice Marine and Planetary– analog Ecosystem (SIMPLE) programme, funded by NASA. It will make its Arctic debut in summer 2016.

Although the current emphasis is purely scientific, its potential applications for the oil and gas industry are also immense.

ROVs are now routinely deployed on offshore projects around the world but, just as operators are being tested by the harsh conditions of the Arctic on every level, the same is true for subsea technology.

“We built a vehicle that’s a hybrid 20 SPRING 2015 www.frontierenergy.info

were rated to just a few hundred metres. between the really small probes and the However, the Southern Ocean can be as ocean-going vessels, and we can deploy it deep as 5,000 metres, still some way out through bore holes on Antarctica,” said of reach.

Britney Schmidt, an assistant professor Innovative solutions were required for in the School of Earth and Atmospheric Icefin to succeed. Standard electronics Sciences at the Georgia Tech, and the principle investigator for the Icefin project. systems are not typically rated to the extreme “At the same temperatures found time, we’re under the Ross Ice advancing Using algorithms such as Shelf, which meant hypotheses that we SLAM allows us to construct a modifications. need for Europa map of the unknown under-ice Also, traditional and understanding GPS does not ocean systems here environment work under the better. We’re also ice, so Icefin developing and uses a navigation system called SLAM getting comfortable with technologies (simultaneous localization and mapping) that make polar science - and eventually to triangulate its position based on Europa science - more realistic.” measuring the range and bearing of Scientists hope Icefin’s data readings features on the seafloor or under the ice. and video footage will help understand “Using algorithms such as SLAM how Antarctica’s ice shelves are changing allows us to construct a map of the under warming conditions, and to unknown under-ice environment. When understand how organisms can thrive in you can do that, you can begin to get a cold and light-free environments.

3D picture of what’s going on under the “We saw evidence of a complex water,” said principal research engineer community on the sea floor that has never Mick West. been observed before, and unprecedented detail on the ice-ocean interface that hasn’t been achieved before,” Schmidt said.

Perhaps the vessel’s main differentiator is how much kit it is able to carry in relation to its modest size. What separates Icefin from many other ROVs is that it is fairly slender, yet still has all of the sensors that scientists need. It carries instrumentation aboard both for navigation and ocean science that other vehicles do not. It is also modular, similar to vehicles used on space missions, which means scientists can swap sensors or point them in different directions as needed.

Icefin is both easily deployed by small teams in any environment, yet still able to record oceanographic information traditionally done by much larger vehicles.

It is capable of diving 1,500 metres and can perform three-kilometer-long Measuring ice depth surveys; previous vehicles in Icefin’s class

Photos: Georgia Tech

Mick West with Icefin

Remotely operated vehicles (ROVs) allow oil explorers to see things underwater that would otherwise go unseen. As technology pushes the boundaries of what is possible, one newly-developed scientific ROV, Icefin, certainly packs a punch, carrying vital extra instrumentation into extreme frozen climates. By Martin Clark

SAFETY & ACCIDENT PREVENTION

The red dots depict AIS registration around noon on 15 January 2015. The limited maritime activity in the southern Barents Sea cannot be relied upon to provide backup rescue capacity in areas without dedicated emergency response resources

EMERGENCY

Providing an adequate safety level for offshore operations in the Barents Sea is a huge challenge for operators and service providers.

Without an emergency preparedness system that balances required performance and cost, there will be no offshore activity in the Barents Sea. The search is on for costeffective, robust and workable solutions. By Peter SchĂźtz, senior engineer with DNV GL Disko Bay. The US Geological Survey states that the Arctic region may contain 20% of the world's undiscovered oil

22 SPRING 2015 www.frontierenergy.info

T

he sharp drop in oil prices over recent months has increased the focus on costs and led to questions regarding the profitability of exploration and production in challenging environments like the Arctic. At the same time, according to the much-cited assessment of Arctic mineral resources from the US Geological Survey, this is an area home to approximately 20% of the world's undiscovered hydrocarbon resources. It is the prospect of these resources, combined with an expected increase in global energy demand, that keeps the industry’s interest in the region alive.

The waters in the Barents Sea and especially the southern part of the Norwegian Barents Sea - can be considered as benign: wind and waves are lower than in the North Sea; the area is less prone to sea ice than the Chuckhi Sea or nearby Kara Sea; and icebergs are less common than on the Grand Banks, off the Canadian east coast. Still, offshore operations in the Barents Sea must cope with environmental challenges such as icing, sea ice, darkness or long distances

to supporting onshore infrastructure.

Emergency preparedness and response are important issues when operating in an Arctic environment. They play a vital role in assuring the safety of all personnel on board an offshore installation.

However, the prevailing environmental conditions can have a negative impact on emergency response capabilities. It is therefore important to evaluate how the availability of the different emergency response resources might be affected in an emergency situation.

DNV GL recently published a position paper studying the emergency response capabilities in the Barents Sea. Considering evacuation and rescue equipment used further south on the Norwegian Continental Shelf, Emergency response for offshore operations in the Barents Sea aims to highlight where existing technology might be applicable and where new concepts need to be developed. Based on the analysis of environmental conditions in the Barents Sea the paper focuses on two main aspects: the availability of evacuation

Images: DNV

preparedness in the Arctic

SAFETY & ACCIDENT PREVENTION

and rescue resources and long-range rescue capability.

Norwegian regulations stipulate that it must be possible for all personnel on board an offshore installation to be evacuated and rescued quickly and efficiently under all weather conditions and at all times. This requirement implies a high availability of evacuation and rescue resources. DNV GL has therefore examined the effect of wind speed, wave height and ice concentration on the availability of evacuation and rescue equipment commonly used on the NCS. The study includes free fall and davitlaunched lifeboats, life rafts, escape chutes as well as fast rescue crafts and Man Over Board (MOB) boats. All of the evaluated resource types are designed for open water conditions.

In general, the results indicate a yearround high availability (>95%) for both free fall lifeboats and fast rescue crafts in large parts of the Barents Sea. Life rafts, escape chutes and MOB boats, however, are more affected by wind and wave and achieve the same high level of availability only during the summer months. Still, all resources achieve an availability level in the southern Barents Sea that is at least as high as in the Norwegian Sea, where stronger winds and higher waves are to be expected. The dominant factor limiting availability in the northern and eastern parts of the Barents Sea is sea ice, causing a considerable reduction in expected availability.

Long-range rescue capability is especially important for exploration and production in remote areas that depend on onshore resources to provide emergency preparedness. While emergency response vessels provide both evacuation and rescue capabilities, their speed limits the area they can cover. In order to respond to emergency situations that require travelling long distances in a short amount of time or responding to an emergency in areas without dedicated emergency response vessels, search-andrescue (SAR) helicopters are required.

Typical examples of such situations are the evacuation of a patient from an offshore installation to a hospital on the mainland or the response to an accident where people entered the sea directly (for instance, due the accident of a helicopter transporting personnel to or from an offshore installation).

Helicopters located at airfields along the coast in Northern Norway could provide sufficient rescue capacity for the south-western part of the Barents Sea, but there is currently no existing offshore infrastructure that can support rescue

operations in areas far from the coast. In joint emergency response concepts addition, the limited maritime activity in based on the principles of shared areabased emergency response resources, as the Barents Sea might not be relied upon applied further south on the Norwegian as backup rescue capacity supplementing Continental Shelf, could be one of the helicopters or other dedicated resources. solutions to the challenges operators in the Hence, new preparedness concepts are Barents Sea will have to overcome. needed for the most remote locations.

The results of the aforementioned analysis indicate that existing emergency response concepts and technologies might be applicable in the south-western part of the Barents Sea. In remote areas on the other hand, far from the coast and existing infrastructure, new concepts may have to be considered for providing sufficient evacuation and rescue capacity.

In order to support the development of new solutions for emergency response, DNV GL is initiating a new Joint Industry Project (JIP) for the Qualification of Arctic Emergency Response Concepts. The project will focus on developing quantitative methods for analysing and evaluating the performance of different emergency response concepts. While providing appropriate emergency response capabilities is the main objective of the emergency response system, the project will also assess and compare the economic feasibility of the different concepts. The work is expected to be based on the same approach used in the development of DNV GL's Arctic Risk Map and PREGA, DNV GL's tool for assessing oil spill response gaps. The platform of these tools will also provide the framework for the visualisation of the results.

Providing an adequate safety level for offshore operations in the Barents Sea is a necessity. Without an emergency preparedness system that balances required performance and cost, there will be no The maps for expected availability of free fall lifeboats in April and offshore activity in the November indicate large seasonal variations, especially in the north-eastern part of the Barents Sea Barents Sea. Developing www.frontierenergy.info SPRING 2015 23

EVENTS

Noia Conference Play on the Edge June 15 – 18, 2015 Delta St. John’s Hotel & Conference Centre, St. John’s, Newfoundland and Labrador, Canada Noia, the Newfoundland and Labrador Oil & Gas Industries Association, is Canada’s largest offshore petroleum association. With more than 650 members in Atlantic Canada and around the world, Noia is at the centre of East Coast Canada’s oil & gas industry. Noia members provide products and services for the petroleum sector. Noia associate members include petroleum companies, trade associations, educational institutions and government bodies and agencies.

Noia’s annual Play on the Edge Conference is Canada’s flagship offshore oil & gas industry information event, attracting industry leaders from all over the world as speakers and delegates. Attendees receive the latest information on Canada’s offshore oil & gas industry, partake in discussions with global industry leaders and avail of unparalleled networking opportunities.

The 2015 Conference theme Redefining Oil: Bringing the Future Home brings together a roster of world-renowned speakers to address key industry topics and trends. Delegates will hear about what current oil prices mean for the global industry today and over the long-term, as well as glean insights into emerging technologies, pioneering solutions and types of rigs necessary for the remote, and often harsh, deep-water and slope environments.

With speakers such as Rex Murphy and Captain Richard Phillips, it is guaranteed to be a dynamic and engaging four days. www.noiaconference.com

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

ASME 2015 34th International Conference on Ocean, Offshore and Arctic Engineering (OMAE2015) May 31 – June 5, 2015 St. John's, Newfoundland, Canada OMAE2015 is the ideal forum for researchers, engineers, managers, technicians and students from the scientific and industrial communities from around the world to meet and present advances in technology, exchange ideas and experiences in technological progress and promote international cooperation in ocean, offshore and arctic engineering. www.asmeconferences.org/ omae2015

24 SPRING 2015 www.frontierenergy.info

7th International Conference On Arctic Margins - ICAM 2015 June 2 – 5, 2015 Britannia Hotel,Trondheim, Norway The International Conference on Arctic Margins (ICAM) is a forum for earth scientists who study the Arctic. ICAM is organized, hosted, and conducted by scientists for scientists, which makes it a unique forum. Abstracts have been submitted covering the following themes - New data on seafloor geology and deep structure of the Arctic Basin and adjacent areas.

Circum-Arctic onshore-offshore structural relations. Stratigraphy, paleo-environments and geological history of the Arctic basin and adjacent areas. Arctic Large Igneous Provinces and their geodynamic significance. Plate reconstructions and lithosphere evolution of the Arctic region. Glacial events and their geological consequences. www.ngu.no/en/activities/7thinternational-conference-arcticmargins-icam-2015 Offshore Europe September 8 – 11, 2015 Aberdeen, UK Offshore Europe 2015 (OE 2015) conference and exhibition from the Society of Petroleum Engineers attracts a global audience of engineers, technical specialists, industry leaders and experts to share ideas and debate the issues of the moment in the upstream oil and gas industry.

Offshore Europe (OE 2015) is a multi-faceted event that reflects the oil and gas exploration and production industry's desire for continuous learning, showcasing the innovation, solutions and tools required to compete in an accelerating technology race in an increasingly complex business. www.offshore-europe.co.uk 2015 Arctic Energy Summit September 28 – 30, 2015 Carlson Center, Fairbanks, Alaska The 2015 Arctic Energy Summit is a multi-disciplinary event expected to draw several hundred industry officials, scientists, academics, policy makers, energy professionals and community leaders together to collaborate and share leading approaches on Arctic energy issues.

Join community, business and political leaders from the eight

Arctic nations, subject matter experts from around the world, and local traditional knowledge holders as we explore best practices – whether emerging technologies or innovative policy – and ways to leverage of public and private investment to help address these challenges. The Summit is highly participatory and interactive, with your participation resulting in outcomes delivered to the Sustainable Development Working Group of the Arctic Council during the U.S. Chairmanship. www.arcticenergysummit. institutenorth.org/2015-arcticenergy-summit 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 Russian Arctic Oil & Gas Conference November 2015 Marriott Grand Hotel, Moscow, Russia Russian Arctic Oil & Gas Conference will cover the full spectrum of issues for oil and gas E&P in the Russian Arctic, including: State policies and methods to stimulate oil &gas production in Arctic offshore project, E&P project update, Technological innovations and international co-operation, Development of service infrastructure in the Russian Arctic, Environmental safety issues. Meet and talk to major industry players in the Russian Arctic. www.arctic-oil-gas.com

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SEISMIC TECHNOLOGY

Joined up thinking:

new integrated seismic solutions The Barents Sea has long been a source of frustration for E&P operators. Despite the fact that numerous wells have encountered shows or minor amounts of oil, commercial volumes of hydrocarbons have, to date, been elusive. Vincent Vieugue and Jason Tinder of EMGS look at the impact of 3D controlled-source electromagnetic (CSEM) data on exploration decisions in the region

3D CSEM data maps resistive anomalies in the subsurface, where the larger the resistive body, the greater the response CSEM data was inverted into 3D earth resistivity models. The end results from the 3D inversion are earth model cubes of horizontal and vertical resistivity, displayed by using a colour scale where warmer colours represent high resistivity and cooler colours, low resistivity.

As part of the multi-client campaign, approximately 20 well locations were covered by 3D CSEM with some drilled prior to acquisition and others after. Out of these locations, in only three were the results from CSEM inconclusive, mainly due to a lack of sensitivity to the target or due to a full 3D inversion not being carried out.

26 SPRING 2015 www.frontierenergy.info

The extensive coverage of the Barents Sea with CSEM data not only gives a regional overview of the resistivity distribution but also maps out resistivity anomalies or thin resistors that could identify hydrocarbon-filled traps.

Example 1: The Hoop Area

In the Hoop Fault Complex, a dominating structural element on the Bjarmeland Platform was the Wisting prospect in Lower- to Middle Jurassic reservoir rocks (Fanavoll et al., 2014). In September 2013, OMV announced an oil discovery in license PL537 on the Wisting prospect with an oil column of 50–60m and potentially recoverable reserves of 60–130 MMboe.

The discovery was associated with a significant EM anomaly as can be seen in figure 1 where the CSEM results indicate high resistivities in two fault blocks in the northeastern part of the larger structure with the integrated interpretation pointing to the presence of hydrocarbons.

To the northwest, in the Hanssen-well (7324 / 7-2) drilled in June 2014, an EM anomaly was coincident with the discovery and resembled the Wisting discovery (figure 2). In this case, 18 to 56 million BOE were detected with the anomaly approximately a quarter of the size of Wisting and fitting exactly with the size of proven reserves. Between the two discoveries lies the Wisting Alternative well that didn’t have an anomaly and was dry.

Furthermore, in the case of the nearby Mercury well, there was an EM anomaly associated with the prospect but the strength was only a third of that of the Hanssen prospect and subsequently delivered much smaller volumes at 6-12 million BOE. This again demonstrated a strong correlation between the observed anomaly and the hydrocarbons discovery in the area.

Example 2: The Polheim Subplatform and Bjørnøyrenna Fault Complex Figure 3 shows three leads on the Polheim subplatform along the Bjørnøyrenna Fault Complex where multi-client 3D CSEM and 2D seismic data were integrated. Two of the leads are interpreted to be analogs with the Lower to Middle Jurassic reservoirs penetrated by the wells (figure 3a and 3b).

The third lead is located east of well 7219/9-1 (figure 3c) and is interpreted to be associated with the Lower Cretaceous– Upper Jurassic section.

Through the integration of geophysical, seismic and CSEM data, an interpretation of the deltaic Lower to Middle Jurassic sand is shown in yellow and Lower Cretaceous fans are shown in green (figure 3a).

Structural closure is identified for the deltaic sand whereas the Lower Cretaceous fans need a combined structural-stratigraphic trap. CSEM data (anomalous vertical resistivity) overlays the seismic data to the right in figure 3a. This CSEM attribute emphasises anomalous resistivity values and is calculated by subtracting a background resistivity model from the vertical resistivity model obtained from inversion.

In figure 3b, a possible flat spot is identified on 2D seismic data in a rotated fault block. The flat spot is interpreted to be in the Middle Jurassic. The CSEM attribute apparent anisotropy overlays the seismic data to the right. Apparent anisotropy is calculated by dividing the inverted vertical resistivity model by the horizontal resistivity model.

This attribute emphasises thin resistors because these are only imaged in the vertical resistivity model and not in the horizontal resistivity model in an unconstrained inversion. The apparent anisotropy shows

Images: EMGS

S

ince 2008, EMGS has been acquiring 3D CSEM data in the Barents Sea, which is now being used by oil companies as an interpretation tool alongside seismic.

Using CSEM data alongside other established technologies leads to higher confidence. In this way, operators can improve decisions throughout the exploration workflow in regard to license applications, prospect ranking, drill-drop decisions and farm-in–farm-out decisions.

3D CSEM data maps resistive anomalies in the subsurface, where the larger the resistive body, the greater the response. This is due to the electrical resistivity of the subsurface being a physical property that strongly correlates with the fluid content and saturation of hydrocarbon reservoirs.

All multi-client CSEM data acquired in the Barents Sea was 3D wide-azimuth data. In the examples below, the

SEISMIC TECHNOLOGY

Hanssen

Wisting Central

Mercury

Figure 1

Hanssen

Wisting

an anomaly located in the same position as the flat spot on the seismic.

The final example is within Upper Jurassic to Lower Cretaceous syn-rift sediments southeast of the dry well 7219/9-1 (figure 3c). Sand is predicted to be present in the syn-rift sediments by seismic inversion and a vertical resistivity anomaly is identified to be located in these syn-rift sediments (figures 3c right). The depth of this resistive anomaly is uncertain.

The two first leads in figure 3 also show resistive anomalies in Lower to Middle Jurassic sands located in a rotated fault block. One of them also shows indications

When interpreted alongside other geophysical and geologic information, CSEM data can have a crucial influence on exploration decisions of a flat spot on the 2D seismic data.

These leads are interesting because they can be regarded as analogs to the Havis and Skrugard discoveries nearby.

The result of combining CSEM with seismic is the identification of a number of new leads and vital information for prospect ranking and drill-or-drop decisions.

Conclusions Figure 2

With the coverage of 3D multi-client CSEM data allowing for the calibration of more than 20 wells - some drilled before and some after CSEM acquisition - CSEM accurately predicted the outcome of drilling in all these wells.

When interpreted alongside other geophysical and geologic information, CSEM data can have a crucial influence on exploration decisions. This includes where to and where not to drill, license applications, prospect ranking, drill-drop decisions, and farm-in–farm-out decisions.

Figure 1: The Hanssen, Wisting and Mercury oil discoveries are clearly associated with resistive anomalies (warmer colors) from the 3D CSEM data. Seismic data courtesy TGS

Figure 2: The Wisting and Hanssen oil discoveries with strong resistive anomalies (red areas) from the 3D CSEM data. The well next to Hanssen encountered an area of low resistivity (blue) is dry. Seismic data courtesy TGS

Figure 3

Figure 3: Three leads on the Polheim subplatform along the Bjørnøyrenna Fault Complex where multi-client 3D CSEM and 2D seismic data were integrated

www.frontierenergy.info SPRING 2015 27

INSIGHT

The Khlebnikov is charting new waters in Arctic tourism

Passengers will have the opportunity to combine voyages for an epic circumnavigation of the Arctic

HOLIDAYS IN THE ICE There was a time when holiday-makers headed for the Florida Keys or the Spanish Costas for their annual vacations. Now, the Arctic is a genuine alternative for those in search of adventure, all from the comfort of a modern day luxury cruise liner

28 SPRING 2015 www.frontierenergy.info

Photos: iStock

T

The Khlebnikov is also the only passenger vessel featuring he frontier Arctic is not only of interest to the world’s energy companies, international tourists are paying top two on-board helicopters, offering remarkable aerial sightseeing opportunities for passengers. It joined the Quark Expeditions dollar to come and see this natural spectacle too. fleet in 1992 and served as its flagship icebreaker until 2012, Adventurers can take part in a truly remarkable journey enabling such feats as seeing the first through the Arctic, powering their own commercial passengers to the Dry Valleys path through seasonal sea ice onboard in Antarctica's Ross Sea sector. ships like the passenger-favourite A true icebreaker, Khlebnikov Originally designed to withstand the icebreaker Kapitan Khlebnikov. was purpose-built in Finland harsh Siberian ice conditions, Khlebnikov Khlebnikov is a renowned expedition in 1981 for crushing through is able to depart earlier in the season, ship, having tied Norwegian explorer cutting pack ice through the Northeast Roald Amundsen’s record for reaching strong sea ice and Northwest Passage. It already has 78° South in 1996. the distinction of having transited the Later that season, it became the first Northwest Passage more than any other passenger ship in history. ship to circumnavigate Antarctica with passengers and remains "A voyage aboard Khlebnikov is one of the most true and rare the only passenger vessel on the planet to have circumnavigated polar expeditions available to passengers today," added White. the Seventh Continent twice.

This year, polar expedition company, Quark Expeditions, is commissioning the vessel to offer unique arctic experiences for paying customers for the 2015/16 season.

It says passengers will be the only travelers in the world to have the opportunity to combine voyages for an epic circumnavigation of the Arctic, through the fabled routes of the Northwest and Northeast Passage, Greenland, and the Canadian High Arctic.

If taken consecutively, Arctic Icebreaker Expeditions cumulate in an epic, 75-day Arctic circumnavigation – the Arctic Icebreaker: Arctic Circumnavigation – a monumental, historic voyage around the polar region.

“Ice-strengthened ships take us to incredible polar region destinations in season, but as a purpose-built icebreaker, it offers Passengers onboard take in the spectacular Arctic views a pioneering experience few will experience in their lifetime,” said Andrew White, Quark President. “On it, we're able to visit polar locations inaccessible by most other passenger expedition vessels."

A true icebreaker, Khlebnikov was purpose-built in Finland in 1981 for crushing through strong sea ice. Nine years later, it was refitted as a passenger expedition ship, and now features 51 cabins, a dining room, a lounge and bar, heated indoor plunge pool, sauna, theatre-style auditorium, complimentary alcoholic and non-alcoholic drinks and a Polar Boutique.

It’s a refurbishment that definitely sets it apart from most ships in the oil and gas industry serving the same area. Those creature comforts are certainly something to think about when you’re onboard a working seismic vessel, rig or scientific ship out in the extreme cold. But it’s not cheap, of course: Arctic Breaking through: the cruise liner breaks through the ice icebreaker expeditions start from $20,000.

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.

Each issue will offer an exclusive insight into the technologies being used to overcome the challenges of this unique environment. Supported by a weekly e-newsletter, the magazine brings readers informative special reports and up-dates on all the latest developments.

• • • • • •

Geographic features Project focus Exclusive insight Special events diary New technology Politics and culture

Connect with your existing customers and reach new ones through the pages of the Frontier Energy.

For editorial enquiries, contact Martin Clark martin@frontierenergy.info For all advertising and sponsorship opportunities, contact Steve Habermel publisher@frontierenergy.info

Frontier Energy is your essential guide to these new markets!

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