Frontier Energy Summer 2015

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

www.frontierenergy.info SUMMER 2015

RUSSIA'S ARCTIC CHALLENGE Steering through sanctions

Icebreaking Finland breaks the ice

Satellite Imaging Look to the skies

LNG Design

Glimpsing the future

Decrypting the Polar Code Redefining the rules

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R EU UE E S

TECHNOLOGY • ENGINEERING • COMMUNITIES • EVENTS

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CONTENTS

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Summer 2015 OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

www.frontierenergy.info SUMMER 2015

RUSSIA'S ARCTIC CHALLENGE

Features

Steering through sanctions

Regulars

06 RUSSIA Moscow remains undeterred in its quest to exploit its Arctic oil

Icebreaking Finland breaks the ice

and gas potential despite the impact of sanctions

Satellite Imaging Look to the skies

08 RUSSIA Rosneft and Exxon's University-1 discovery greatly enhances

LNG Design

Glimpsing the future

Decrypting the Polar Code Redefining the rules

TECHNOLOGY • ENGINEERING • COMMUNITIES • EVENTS

IN THIS ISSUE

O

PE RO EU E E SU OR IS SH 5 FF 01

2

On the cover An icebreaker tries to break free of the ice as it leaves the harbour

understanding of the Kara Sea region

10 RUSSIA The Yamal LNG export project remains on track underlining Russia's resolve in seeing key Arctic energy projects through

12 POLAR CODE Decrypting the Polar Code: an inside look by ABS Director of Shared Technology, James Bond

14 ICEBREAKING Pushing Arctic marine technology with the development of the first oblique icebreaker

04 NEWS Eni Norge prepares for Goliat lift-off; Russia stakes new UN claim for Arctic territory; Industry awaits Shell Alaska drilling results; US, Canada ponder Arctic drilling lease extensions; USGS updates five-year Arctic science strategy

28 INSIGHT The Arctic

16 ICEBREAKING Understanding the resurgence of the new icebreaker market with insight from Steerprop of Finland

18 ICEBREAKING The rise and rise of Finland's pioneering Arctia Shipping fleet 19 ICEBREAKING FE meets Patrick Eriksson, Product Manager Customer Services and Media at the Finnish Meteorological Institute in Helsinki

region remains the most peaceful place on earth, according to a recent survey, with Iceland ranked top of the list

20 ICEBREAKING An insider's look at Finland's Arctech with Managing Director Esko Mustamäki

21 ICEBREAKING How ABB is supporting the development of a new breed Cover Photo: Shutterstock

of icebreakers

22 LNG/FLNG The search for effective FLNG solutions has led DNV to develop its new Solitude concept, based on maximum reliability for remote environments

24 OIL SPILL TECHNOLOGY How industry is working together, across air, land and sea, to improve our ability to counter oil spills

26 SATELLITE IMAGING The power of satellites can help the energy industry minimise the environmental impact of Arctic exploration www.frontierenergy.info SUMMER 2015 01

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EDITOR’S LETTER

FRAM* “It was, in fact, 15 years since the initial Goliat discovery was made.

Perhaps this will provide a good benchmark to the sort of timelines we should expect from any future developments in or around these areas”

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.

Oil exploration and development is a long and costly business anywhere in the world but the stakes are that much higher in the Arctic, for all sorts of reasons. For starters, the remoteness and unique sensitivities of this challenging region mean extra care and diligence must be taken by all that venture into this testing environment - not just oil explorers, but adventurers, holiday-makers and scientific researchers alike.

It took a long time, years in fact, for Shell to return to drilling in the Chukchi Sea off Alaska, where it is now once again working. Not only were there immense technical, logistical and environmental computations to work through, but also plenty of very vocal, visible and sometimes valid resistance by protest groups. It had to be done right.

As polar ice recedes, the opportunities for exploring the Arctic are opening up, hence the interest of the oil industry, and indeed other areas such as the maritime and fisheries sectors. This explains the recent interest among the Arctic nations to shore up their boundaries and stake their claim on the region. After all, if geologists say the Arctic is home to a large slice of the world's undiscovered hydrocarbons, then there are clear economic motivations here too.

There can be no race for the Arctic though. The hostile terrain and sheer distance from the rest of civilisation are enough to put the brakes on any economic drive anyway, but factor in the enormous environmental challenges to preserve this pristine wilderness, then it is clear progress will always be slow and carefully considered.

Moreover, there is a huge difference across the area that falls within the Arctic Circle region, from the permanent ice caps in the far north - no one is yet contemplating drilling for oil there - to the colder, more remote seas that climb up from the Norwegian North Sea. These latter areas, for instance, are now opening up to industry, albeit very slowly.

It is a long way from the polar ice caps, but Norway's Goliat development, an Arctic oil and gas project expected to come on stream very soon, has likewise been many years in the planning. It was, in fact, 15 years since the initial Goliat discovery was made. Perhaps this will provide a good benchmark to the sort of timelines we should expect from any future developments in or around these areas.

As in other parts of the oil industry, however, such as the successful move into ever deeper waters, the technology learning from these early projects can be deployed to new work. Over time, this can only enhance our understanding of the region's particular challenges, and ultimately, result in more effective, more dependable and safer operations in the field.

These are still early days and an open and frank discussion on the realities, complexities, threats and benefits of oil and gas exploration and development in the Arctic should be welcomed by all. It is the only way to ensure responsible progress amidst the conflicting voices of industry, campaigners, and host nations.

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 SUMMER 2015 03

NEWS

Eni Norge prepares for Goliat lift-off Final preparations are underway at the Goliat platform in the Barents Sea, ahead of first oil production.

A fleet of vessels has been surrounding the platform - the world’s largest and most sophisticated circular FPSO - ahead of start-up this year, including the Floatel Superior, a floating hotel, for extra accommodation, the offshore installation vessel Normand Pioneer and the rig Scarabeo 8 for production drilling.

The Goliat field, in production licence 229 (PL229), is planned to come on stream later this year. The discovery was made with the first exploration well back in 2000.

There are two separate main reservoirs – the Kobbe formation and the Realgrunnen group - which both contain oil with an overlying gas cap.

Eni Norge AS is the operator, with a 65% stake, partnered by and Statoil Petroleum AS with 35%.

IN NUMBERS

2 The number of successful appraisals carried out by Lundin Norway on production licence 609, some 190 km northwest of Hammerfest in the Barents Sea

20%

of mainland Norway lies north of the Polar Circle and is considered internationally to be part of the Arctic

Shell's deep drilling had to wait until the arrival of the Fennica icebreaker

The mighty Goliat FPSO

Industry awaits Shell Alaska drilling results

Russia has renewed a bid to get the United Nations to recognise a huge 1.2 million square kilometre swathe of the Arctic shelf that it lays claim to.

The country made a similar claim in 2001, which was rejected because of insufficient evidence, and opposition from other Arctic states. It also placed its flag on the Arctic seabed in 2007 in a much publicised, but controversial, move.

But Moscow says the latest claim is backed by fresh scientific data.

"Ample scientific data collected in years of Arctic research are used to back the Russian claim," the Russian foreign ministry said in a statement.

Russia also announced that it is to strengthen its naval forces in the Arctic as it steps up interest in the region.

The other Arctic states including the USA, Canada, Norway, Denmark - are also keen to assert their own territorial claims. Canada recently launched a new scientific survey as part of efforts to secure its Arctic boundaries.

Scientists and geologists believe the Arctic could hold up to a quarter of the world's undiscovered oil and gas reserves.

Russia is seeking a bigger claim over the Arctic

04 SUMMER 2015 www.frontierenergy.info

Photos: Eni Norge, Shell & Arctic Council

Russia stakes new UN claim for Arctic territory

The oil industry is keenly awaiting the outcome of Shell's current drilling campaign in the Chukchi Sea, offshore Alaska.

After years in the planning, and many months of setback, preparation and frustration, the company finally commenced drilling operations on July 30, targeting the 'Burger J' prospect using Transocean's Polar Pioneer rig.

The well is located 70 miles offshore and 800 miles from the Anchorage command centre.

It follows a sustained programme against the resumption of drilling by environmental protesters.

Shell's last activity in the field ended on a sour note with the ship wreck of the drill ship Kulluk in December 2012 amid rough weather.

"We remain committed to operating safely and responsibly and adding to Shell’s long history of exploration in offshore Alaska," the company said in a brief statement after it commenced drilling operations at the end of July.

The 'Burger J' well is the first of a potential two-well Shell campaign off Alaska this year.

2030

30

vessels are being used to support Shell's drilling project in the Chukchi Sea

the date when as much as two- thirds of traffic currently passing through the Suez Canal could be re-routed Shell's Burger J prospect in Alaska through the Arctic because of receding ice, according to Sources: Lundin, Statoil, Shell, CPB Netherlands a recent study Bureau for Economic Policy Analysis

70 miles offshore

US, Canada ponder Arctic drilling lease extensions Canada and the USA are looking into extending the duration of Arctic drilling licenses. Officials are keen on the move due to the challenges of drilling in harsh conditions while meeting strict safety requirements, which severely limits the actual time operators can spend working in the field.

The Canadian government is considering the law change in response to industry lobbying to extend licenses that expire in 2020 for seven years.

It's also a response to complaints from industry that the typical lease duration is too brief for Arctic exploration, which is limited to a few months in the summer when the ice recedes.

Shell drilled two wells in the Chukchi and Beaufort seas in 2012, but has had to wait three years before coming back to begin work on a third well, now underway.

Canada's Imperial Oil said only last month that it needed more time before it could drill an exploratory well in the Beaufort Sea, alongside partners BP and ExxonMobil.

Critics argue that the move could potentially cost the state millions of dollars in new cash deposits from the major oil companies.

Arctic drilling requires huge time commitment

Photo: Transocean

USGS updates five-year Arctic science strategy The US Geological Survey has released a new five-year Arctic strategy that includes better understanding of the area's mineral resources and more detailed mapping of Alaska.

The new strategy, which will guide its work through to 2020, covers predominantly scientific research and also includes studying the effects of permafrost thawing.

In the introduction to the new USGS Arctic science strategy it states: "The rapid changes facing the Arctic region resulting from climate change requires reliable scientific research and up-to-date information to help policy makers make informed resource management decisions. It is imperative that the USGS establish and undertake an Arctic science strategy that is responsive to national priorities and objectives for the region."

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ARCTIC RUSSIA

Arctic potential: Russian President Vladimir Putin

RUSSIA UNDETERRED from Arctic oil challenge

Russia remains steadfast in its Arctic ambitions, recently filing a new territorial claim with the UN to expand its position in the far north. But, with sanctions limiting its exposure to western technology and partnerships, progress is unlikely to be rapid

06 SUMMER 2015 www.frontierenergy.info

That does not mean progress in the energy sector has been plain sailing for local oil and gas companies, however. It's true that Russia's biggest oil company Rosneft, and others, are keen to deepen their understanding of this frontier region, but, as their peers are discovering elsewhere in Europe and North America, this is an entirely new challenge, given the extreme location, hostile climate and great environmental sensitivities.

Throw in the current ill feeling between Russia and the west over the Ukraine crisis - and the imposition of a raft of sanctions deterring American and other international firms from engaging with Russian partners - then that challenge becomes ever more complex.

Still, Russia's oil companies have long gazed upon the untapped potential of this little touched area. Last year, Igor Sechin, the head of Rosneft, said on the eve of drilling in the Kara Sea that developing the country's Arctic shelf would have a huge multiplier effect on the whole Russian economy.

As the the world's top oil producing nation - a title it routinely contests with Saudi Arabia - Russia's output hit a post-

Soviet high of an average 10.58 million barrels per day (bpd) last year. But the country needs to explore new areas such as the Arctic or for shale oil because its resources in Western Siberia, Russia's main oil producing region, are depleting. Pushing the boundaries of frontier oil in the far north becomes more and more important.

Drilling in the Kara Sea And the potential is certainly there. Last year, before sanctions derailed the project, Exxon Mobil partnered Rosneft to drill the much anticipated Universitetskaya-1 (or University-1) discovery well in the Kara Sea, whipping up hopes that a new oil province was about to emerge.

The estimated 1 billion barrel oil find was significant in uncovering liquids, confirming that this area is much more than just a gas province. The drilling area, in the East-Prinovozemelskiy-1 license, is located close to the Yamal peninsula where Russia is currently building a huge liquefied natural gas (LNG) export plant. Rosneft's chief Igor Sechin said at the time that drillers extracted "an astonishing sample of light oil", comparable to that of Siberian Light oil.

Photo: Shutterstock

R

ussia's plans for the Arctic are not too difficult to guess: expansion, control, development, and so on. President Vladimir Putin has long flagged his country's strategic and economic aspirations for the region. Most recently, this culminated in the re-submission of its petition to the United Nations claiming exclusive control over 1.2 million square kilometres of the Arctic sea shelf. Russian foreign ministry officials say the claims this time are backed by "ample scientific data".

Whether that's enough to persuade UN decision-makers - and other Arctic nations that each have their own territorial claims - remains to be seen. The point is Moscow has big plans for the Arctic and it does not intend to shy away from pursuing them.

Indeed, the Russian navy confirmed a new strategy only recently that prioritises its Northern Fleet, underlining the key military and national security element to this multi-faceted Arctic approach. It also opened its Northern Command Centre on an Arctic island abandoned after the Soviet era. Add to this the massive roll-out of a new fleet of modern icebreakers and there is a clear statement of intent.

ARCTIC RUSSIA

Exxon Mobil and its partner were working together as part of a 2011 joint exploration pact covering Russia (other upstream projects were shaping up in the Black Sea and western Siberia), the US and elsewhere. The American company is already the operator of the Sakhalin 1 project in Russia's far eastern region. The University-1 well was drilled under the joint venture company Karmorneftegaz.

It was, however, the first Arctic exploration well to be drilled by the partnership and, for now at least, the last.

Frozen out by sanctions, Exxon Mobil is no longer able to continue its work off Russia's Arctic coast, announcing that it would scale down activities not long after the well was completed.

At the end of last year, the joint venture terminated contracts for a number of service vessels operated by Norway’s Siem Offshore and Rem Offshore that were to be deployed in the region.

As it stands, the Kara Sea wildcat is emblematic of Moscow's determination to pursue its Arctic oil potential, but confronted by increasingly austere western sanctions.

This has not killed off the pairing between Rosneft and Exxon though: the two sides are still working together elsewhere, most recently applying for exploration permits off Mozambique. But it is hard to see further work taking place to exploit understanding of this exciting Arctic well until a more favourable political climate emerges - at least on a mutual basis. No more Kara Sea wells are planned this year although Rosneft sources have indicated that there are hopes to continue work in the field in 2016, alone if necessary.

Russian resilience There is more positive news for Russia's energy companies though, which remain well funded and highly resilient despite the current subdued oil market.

And this could help sustain momentum in the challenging Arctic region even in the face of sanctions and the forced reluctance of western companies to commit to further investment.

Indeed, analysts argue that Russia's major oil and gas companies are uniquely positioned to take advantage of the current macro-economic environment because of their financial resiliency. Although their share prices may have been hit harder than other peer groups when the oil price

long-term domestic production." collapsed, given the added challenge of This international focus, however, western sanctions, there are other more would boost Russia's expertise in favourable fundamentals. more challenging resources including Dr Valentina Kretzschmar, a research unconventional, LNG and deepwater director for Wood Mackenzie's corporate developments. "This move would help upstream research service says Russian diversify Russia’s inventory away from majors' upstream cash flow break evens its domestic conventional focus and are among the lowest in the world, at help to ensure access to new longer-term less than $60 per barrel. "Costs are growth opportunities, which has become a largely rouble denominated and among strategic goal for Gazprom and LUKOIL." the lowest in the world, underpinned At the same time, for Rosneft, drilling by vast conventional domestic legacy activity is increasing on the company's production; and the rouble devaluation has cushioned the negative effect from the domestic legacy assets, which is in part thanks to the rouble devaluation, which lost fall in oil prices. This combination will 50% of its value against the US dollar in the help Russian producers stay competitive latter half of 2014. Significantly, although even if oil prices remain low." One of Rosneft and LUKOIL have both decreased the primary challenges of working in the exploration and production budgets by Arctic, of course, is cost.

26% year-on-year average in US dollars, According to analysis from Wood they actually increased spend in Russian Mackenzie, the slight rebound in oil prices rouble terms. That means the ability and this year, coupled with a stronger Russian capacity to invest in new projects remains rouble, has eased the situation for many undiminished, despite the stranglehold local industry participants. It says activity limitations of sanctions. If these companies is likely to be guided by access to new wish to continue their pursuit of Arctic resources around the world, which means geopolitics will have a big part to play: the opportunities also, then the scope financially and economically is there. sanctions imposed on Russia are pushing its majors abroad to new resource bases in Latin America, Africa and Asia, with most territories still open for business with Moscow.

"Rosneft and LUKOIL were prevented from accessing western capital markets," says Dr t Ohmsett, testing and R&D opportunities Kretzschmar. "The abound! Our unique capabilities and realistic sanctions imposed marine environment play an essential role in by the EU and US were intended developing new technology that will be cleaning to significantly the world’s water in the future. hinder Russia's Features & Capabilities: oil and gas ❖ Full-scale testing, training and research production ❖ Independent and objective testing with real oil potential, by banning the ❖ Measurable and repeatable test parameters use of western ❖ Chemical treating agents and dispersant testing technology and ❖ Mechanical containment and recovery in ice equipment used to ❖ Evaluation of remote sensing systems extract volumes ❖ Test protocol development from Russia's vast Ohmsett tight oil, Arctic Leonardo, New Jersey and deep water 732-866-7183 resources - key for www.ohmsett.com/frontier.html

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ARCTIC RUSSIA

A University EDUCATION

D

rilled during the summer season (August-October) of last year, the University-1 discovery well in the Kara Sea - the northernmost well in the world - was perhaps the defining event of 2014 for Russia's nascent Arctic energy sector.

The well was drilled in the EastPrinovozemelskiy-1 license area, off the Yamal peninsula, by a joint venture between Rosneft and Exxon Mobil. It is one of Russia's big offshore Arctic projects following the launch of the Prirazlomnoye field, which is operated by Gazprom Neft.

Hotly contested by environmental campaigners, the University-1 well was drilled in water depths of 81 metres by the West Alpha semi-submersible rig to a full depth of approximately 2,113 metres. The discovery still requires further testing and appraisal but Rosneft said the resource base estimate of just this single oil trap uncovered by the well stands at some 338 billion cubic metres of gas and more than 100 million tones of oil. It could be the first of more to come. According to more bullish claims, the Kara Sea oil province could hold comparable resources to that of Saudi Arabia.

Rosneft says the larger Universitetskaya structure covers an area of 1,200 thousand kilometres with a 550 metre high hydrocarbon trap. Its resources account to more than 1.3 billion tons of oil equivalent.

The company says a total of some 30 structures have been found in three East Prinovozemelskiy areas of the Kara Sea, and the entire resource base of these areas is estimated at around 87 billion barrels.

Soon after the discovery was announced, Rosneft boss Igor Sechin hailed a "new Kara Sea oil province" and

08 SUMMER 2015 www.frontierenergy.info

The West Alpha rig used to drill the successful Kara Sea wildcat

declared that the well would be named Pobeda (or 'Victory'). Unfortunately, it could be some time yet before we learn more about this exciting new prospect.

For now, with the exception of perhaps the environmentalists that challenged the well every step of the way, no one wins.

Soon after the discovery was announced Rosneft chief Igor Sechin hailed a "new Kara Sea oil province"

Next steps The next step is hard to predict, but whatever happens it is unlikely to involve the direct participation of Exxon Mobil, which supplied the rig under contact from Seadrill, a unit of North Atlantic Drilling.

Rosneft has stated that it will ensure the implementation of all license obligations during 2015 and has hinted that it will carry on regardless. Unofficial comments from the company suggest that it is hoping to spud a second Kara Sea well during the 2016 summer season and that the search is on for a suitable rig to undertake the work. The West Alpha platform was beefed up specially for working in tough Arctic conditions. The rig, which returned to Norway after the Kara Sea drilling, is under contract with Exxon until next year.

Earlier this year, an unnamed Rosneft source told Reuters that there were plenty

of rig options available, with the global appetite for drilling down since the fall in oil prices. This helps with costs, while any suitable rigs could also be upgraded for work in the Arctic if required. Another main challenge, however, would be in addressing the safety of operations in an area where Russia lacks expertise.

This is where Exxon's role, itself only experimenting in Arctic frontiers, would be irreplaceable.

Either way, the prospect of seeing any development work in the area has been pushed back considerably. Even with the re-start of drilling in 2016, commercial production would not be possible anytime before 2020, most likely much later.

By comparison, Norway's Goliat project in the Arctic circle has taken 15 years from its first discovery well to reach commercial production due later this year. Based on those simple figures, Kara Sea production could be as far off as 2030. Still, with other infrastructure developments taking shape onshore and offshore, this would certainly impact favourably any future development timescales. While Exxon must now watch from the sidelines, Rosneft can continue to piece together its Kara Sea jigsaw.

Drilling the Kara Sea

Photo: North Atlantic Drilling & Rosneft

Despite political challenges halting work, the University-1 discovery in the Kara Sea greatly expands the oil industry's knowledge of, and hopes for, Russia's Arctic region

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ARCTIC RUSSIA

Yamal LNG is on track to deliver first production in 2017

Yamal LNG: NO GOING BACK Despite the limitations imposed by tough sanctions, and the complexities of sourcing third party finance, Russia's $27 billion Yamal LNG mega project is moving ahead at pace with first gas still anticipated in 2017

Yamal is not Russia's first LNG venture - that honour goes to Sakhalin in the Far East - but it is a strategically significant project for a number of key reasons Asia, and the Yamal development team hope to have project financing in place later this year.

But that's not to underestimate the complexity of all these tasks, especially

10 SUMMER 2015 www.frontierenergy.info

in the current political climate and at a time of more subdued oil prices.

The venture is owned by Russia's Novatek (60%) - Russia’s second-largest independent gas producer, controlled by billionaires Leonid Mikhelson and Gennady Timchenko - in partnership with Total of France and China's CNPC (20% each). The three train LNG project will eventually deliver a capacity production of 16.5 million tonnes a year, drawing gas from the huge South Tambey field. Full capacity is anticipated by 2021. Most of this gas will be exported to Asia, notably China, through the Bering Strait between Siberia and Alaska.

Yamal is not Russia's first LNG venture - that honour goes to Sakhalin in the Far East - but it is a strategically significant project for a number of key reasons. Not only will it mark the country's first foray into the European LNG space, it is also a further test of Russia's own competencies in this niche, in deploying complex gas technologies in such a challenging terrain and climate. Lessons have been learned from Sakhalin, of course, and, in Total, it has a partner with an abundance of

experience in LNG worldwide, but this remains a daunting venture in areas such as Arctic shipping, and now, in sourcing commercial financing at such a challenging time.

The Chinese way The prevailing political backdrop, amid tensions between Russia and the west over Ukraine and Crimea, does not help one bit.

In July, the US Treasury placed Novatek on its blacklist of Russian companies, even though the joint venture itself is not directly under sanctions. It means accessing commercial financing to bankroll the project is proving extra difficult.

One significant feature of Yamal LNG, however, is the inclusion of CNPC, a tangible part of Russia's emerging energy partnership with China. And that could be decisive when it comes to funding the Arctic gas development. With the involvement of a number of international financial institutions now restricted, Moscow is switching its attentions to Asia, and China has already been linked with a decisive role in the project financing.

China may provide up to $15 billion

Photos: Gazprom

O

ne of Russia's flagship Arctic energy projects, the $27 billion Yamal LNG scheme, is making good progress despite any obstacles arising from international sanctions. The liquefied natural gas venture is now well under construction on Russia's northern Yamal peninsula in the Kara Sea, with start-up of the first train anticipated in 2017. Around 95% of LNG volumes have already been placed with buyers under long term contracts in both Europe and

ARCTIC RUSSIA

The project will bring huge economic benefits

of the cash needed, Total chief executive Patrick Pouyanne said earlier this year.

“You have a strong willingness to build the project financing” from the Chinese financial institutions, Pouyanne was quoted as saying on March 23 by The Wall Street Journal. “It’s not an easy task, to be clear. We would have preferred to do it with dollars.”

If that happens, it will be the largest ever syndicated project financing by Chinese lenders; the money would likely be a mix of Chinese yuan and euros, not dollars. A yuan-based deal would represent a major paradigm shift in the global project finance market, and another small step in the loosening of the dollar’s position as the global reserve currency. Pouyanne has described the situation as not ideal, but analysts say it is the only way for the group to bypass any restrictive sanctions measures.

It also means there is potential scope for CNPC to deepen its ownership in the project. Novatek has been in talks to sell about 10% of its equity for some time, and hopes to conclude a deal hopefully this year, according to the company’s chairman, Leonid Mikhelson. Russian deputy prime minister Arkady Dvorkovich has already hinted that CNPC might be allowed to up its stake in the project in return for Chinese financing.

Work in progress Meanwhile, work on the ground continues apace. At the liquefaction plant itself, located 2,500 km northeast of Moscow, work is well underway, while upstream, three rigs are operating simultaneously to drill all the production wells required.

Other infrastructure includes a series of major upgrades to the port of Sabetta, which opened to first winter navigation in 2013 to ensure year-round supplies and access for construction cargos. Based in the estuary of the Ob River, the area is icebound nine months of the year. In 2014, Sabetta's port handled 2.1 million tons of materials and equipment, more than twice the year before, although this is set to grow rapidly as expansion work continues.

The International Sabetta Airport is also up and running and open to large commercial aircraft. The first Boeing 737 flight took place towards the end of 2014.

And there is plenty of activity taking place on the shipping side too, with a total of 16 icebreakers under order to serve the project. In August, it emerged that Greece's Dynagas will take ownership of five of Yamal LNG's icebreakers. All new builds, costing $1.5 billion and each with 172,000 cubic metre capacity, the ships are being built

by Daewoo Shipbuilding & Engineering in South Korea.

The ships were to have been owned

by Sovcomflot but financing barriers forced the change, with Dynagas said to have already lined up funding for the vessels. Other Yamal icebreakers have been handed to Teekay LNG and China LNG Shipping, which will own six of vessels, and Mitsui OSK Lines with China Shipping Development, which will have three ships. Sovcomflot will have one Yamal vessel, now being built in Korea, which it will take control of next year.

It is all backed by a very successful marketing effort. Novatek Gas and Power, Novatek's trading subsidiary, recently thrashed out deals with Shell International Trading Middle East and French gas and power group, Engie, formerly known as GDF Suez. The Engie contract, for 1 million tonnes per year over a period of 23 years, covers delivery to the Montoir de Bretagne LNG import terminal on the west coast of France, operated by Elengy, an Engie subsidiary.

The deal with Shell is for 900,000 tonnes a year of LNG over a 20-year period.

Russian oil flows from the Arctic Russia's Arctic oil output grows Despite oil drilling hold-ups in the Kara Sea, there is already enough evidence to suggest that Russia's Arctic region is far more than just a gas province. Crude oil is already flowing out of Russia's Arctic region following the December 2013 launch of Gazprom's offshore Prirazlomnoye field in the Pechora Sea, south of Novaya Zemlya. The field contains 72 million tons of reserves, enabling annual production of 6.6 million tons.

And, as more infrastructure comes on stream, it bodes well for the future of other developments in the area. The Prirazlomnaya platform is inherently designed to receive oil from other fields nearby.

Other oil is already flowing from the area. Gazprom Neft, for instance, completed its first winter shipments of oil from the Novoportovskoye field earlier this year. Seven tankers, carrying a total 110,000 tonnes of the company’s new Novy Port oil, were despatched from Yamal by sea to buyers in northwestern Europe, with all payments made in roubles. The tankers were upgraded for extreme winter temperatures and towed through the ice by Atomflot nuclear-powered icebreakers.

Novoportovskoye oil is currently transported to the coast via a 100 kilometre pipeline, with a capacity of 600,000 tonnes per year. Infrastructure installed at the field, and on the coast of the Gulf of Ob, allowed the first sea shipments of oil from Novy Port in summer 2014.

Gazprom Neft chief executive Alexander Dyukov says his company's long-term strategy sees increasing production at various fields in the far north, both onshore and offshore.

Indeed, the Gazprom general operating concept for the Russian shelf stipulates a common approach to pre-development of fields in the Barents, Kara and Pechora Seas, and the Sea of Okhotsk. This hinges on the development of closely located clusters of fields to benefit from common infrastructure and economies of scale. The Prirazlomnoye field, for instance, is aligned with the development of the Dolginskoye oil field, also in the Pechora Sea. Dyukov says various projects are now under active development, onshore and offshore, that will account for a significant proportion of the company’s production within a short time. As infrastructure build-up increases, this will enhance project economics for other fields.

www.frontierenergy.info SUMMER 2015 11

POLAR CODE

The maritime regulatory environment is changing as polar traffic increases

Decrypting the Polar Code After the IMO formally adopted the final and remaining parts of the Polar Code this May, the maritime industry is now gearing up for the entry into force of the new guidelines in 2017.

ABS Director of Shared Technology, James Bond, explains the significance behind it all

A

s the potential for marine traffic in polar regions increases, there is a clear need for modern and effective regulation. One of the significant steps toward that goal was achieved on May 15, 2015 when the International Maritime Organisation (IMO) formally adopted the final remaining parts of the International Code for Ships Operating in Polar Waters – known colloquially as the 'Polar Code'.

The formal adoption of the Polar Code is a significant industry milestone. It is the result of more than two decades of work led by the IMO to promote safety and reduce environmental pollution from the growing number of vessels operating in Arctic and Antarctic waters.

Its adoption is a meaningful step forward for the industry toward sustainable polar maritime activities.

Application In adopting the Polar Code, the IMO has introduced new binding regulations, formulated within a 'goal-based standards' framework and covering a wide spectrum of design, construction, equipment, operational, training, search and rescue and environmental protection measures. The Polar Code supercedes existing voluntary IMO guidelines – 'Guidelines for Ships Operating in 12 SUMMER 2015 www.frontierenergy.info

Arctic Ice-covered Waters' introduced in 2002 and the expanded version of the document, 'Guidelines for Ships operating in Polar Waters', published in 2009.

The Polar Code comprises two mandatory parts: Part I-A, which covers safety measures, and Part II-A, which covers pollution prevention. Each of these is supported by non-binding

The Polar Code will apply to all SOLAS certified ships operating within specifically defined Arctic or Antarctic waters. Entry-into-force (EIF) is set for January 1, 2017 recommendations. Mandatory regulations come into effect via amendments to Safety of Life at Sea (SOLAS) and the Marine Pollution Convention (MARPOL).

The Polar Code will apply to all SOLAS certified ships operating within specifically defined Arctic or Antarctic waters. Entryinto-force (EIF) is set for January 1, 2017.

New ships built after that date must be in full compliance with Polar Code regulations. Existing vessels will have to comply by their first intermediate or renewal survey after January 1, 2018.

Requirements The Polar Code is the first mandatory IMO instrument to formally introduce the notion of ice classes. The most ice-capable vessels fall into Category A. These ships are designed to operate in at least medium first-year ice (ice that is 70 cm to 120 cm thick). Category B ships are those designed for operation in polar waters in at least thin first-year ice (30 cm to 70 cm thick). Category C vessels are designed to operate in open water or in ice conditions less severe than those defined in categories A and B. All vessels that operate in Polar regions must have a valid Polar Ship Certificate on board that designates the vessel as Category, A, B, or C. The certificate is awarded based on an assessment that establishes operational limitations, taking into account the anticipated range of operating and environmental conditions and hazards the vessel could face in polar waters.

Conditions and hazards that are considered during evaluation include such things as low ambient air temperature, the presence of ice, the possibility of abandoning ship onto ice or land, the remoteness of the operational area, and the effect of polar conditions on human performance.

For vessels operating in low ambient air temperature, all of the onboard systems and equipment have to be able to function at

POLAR CODE

Polar Code Vessel Classification The Polar Code requires ships intending to operate in Arctic and Antarctic waters to apply for a Polar Ship Certificate, which places the vessel within a particular classification group.

Category A

Ships designed for operation in polar waters at least in medium first-year ice, (ice that is 70 cm to 120 cm thick), which may include old ice inclusions

Category B

A ship not included in category A, designed for operation in polar waters in at least thin first-year ice (30 cm to 70 cm thick), which may include old ice inclusions

Category C

A ship designed to operate in open water or in ice conditions less severe than those included in Category A or Category B

Source: IMO

the polar service temperature (PST), which is at least 10°C below the lowest mean daily low temperature recorded for the area where the vessel is intended to work during the anticipated season of operation. IMO requires survival systems and equipment to be fully operational at the PST for the maximum expected rescue time.

Another requirement of the Polar Code is for vessels to carry a Polar Water Operational Manual. This has to include information on the vessel’s specific capabilities and limitations along with procedures that are followed in normal operations to avoid exceeding the vessel’s design capabilities, and procedures if operating conditions exceed the vessel’s capabilities.

Onboard fire safety systems and appliances are also covered by the Polar Code. These systems and associated equipment have to be protected from ice and snow and must be operational by personnel who often are outfitted in bulky and cumbersome personal protective equipment (PPE). There is a requirement for the fire safety systems and appliances to be effective under the PST assigned to the vessel. And there are additional requirements for lifeboats to be partially or completely enclosed, for thermal protection to be provided for personnel and for escape, evacuation, and survival conditions to be adequate for people wearing cold-weather PPE. Under the Polar Code, vessels have to provide a way to receive and display current information on ice conditions and to be able to visually detect ice while operating in darkness. Each vessel is also required to have two non-magnetic means of determining and displaying the vessel’s heading. Vessels must prevent ice accretion on antennas used for navigation and communication and must have processes in place to provide for effective communication for ships and survival craft in both normal operations and emergency situations.

Because low temperature operations have posed challenges for industry for some time, ABS published the ABS

Guide for Vessels Operating in Low Temperature Environments in 2006. This guidance can be applied either in full or in part to meet Polar Code regulations for winterisation. Additional guidance is available in Part 6 of the ABS Steel Vessel Rules, which includes Polar Class ice class requirements that are specifically referenced in the Polar Code.

Preparing for Implementation As a member of the International Association of Classification Societies (IACS), ABS has participated in the development of the Polar Code and has been integral in creating the IACS Unified Requirement for Polar Class Ships, which is directly referenced in the Polar Code’s regulations for hull structure and machinery. ABS chairs the IACS Expert Group, which is responsible for coordinating all Polar Code task items within IACS. It is working within IACS via various hull panel and machinery project teams to further improve these standards and develop effective unified interpretations, guidance, and new harmonised requirements to support the IMO regulations.

In preparation for EIF, ABS is educating its engineers around the world and working with clients who have questions about how to meet compliance challenges.

Recognising that the industry needs informed guidance in applying the new Polar Code requirements, the ABS Arctic engineering team will publish the ABS Advisory Note on the Polar Code in late 2015 as an introductory knowledge book to help organisations that are working to address compliance challenges.

actual ice conditions in polar regions.

The guidance, currently being finalised, contains a newly developed system that allows for the level of risk to be determined based on specific ice conditions for ships of different ice classes.

The risk evaluation system, known as the Polar Operational Limit Assessment Risk Indexing System (POLARIS), has been created with IACS providing technical coordination and input from participants, including the US, Canada, Denmark, Finland, Russia and Sweden.

An active participant in its creation, ABS is streamlining the application of POLARIS guidance for use by operators and is prepared to coordinate with major flag administrations to clarify requirements.

While POLARIS constitutes a significant first step to enhancing and refining standards for Arctic operations, it is not the end of the road. Additional guidelines and standards are sure to follow, and ABS will continue to contribute its efforts to help map the way forward.

Receding Arctic ice means more shipping

Cutting a channel through the ice

Beyond the Polar Code The adoption of the Polar Code unarguably is a move toward safer maritime operations in Arctic regions. It is the first IMO document that – through reference to guidance to be developed by the organisation – addresses the lack of uniformity in operating conditions and links the ice class of vessels to the www.frontierenergy.info SUMMER 2015 13

ICEBREAKING

Finland’s maritime industries are at the forefront of the drive to develop sustainable business operations in the Arctic region. The stakes are high: some €140 billion of investment is planned in the Barents Sea area alone and Finnish know how, technical innovation and expertise, particularly in the field of icebreakers where Finland’s international reputation transcends all others, are vital elements in the quest to realise return on investment.

Christopher Mayer reports.

Baltika – revolutionising Arctic operations

THE UNIQUE OBLIQUE

I

n the late 1990s, an internal innovation contest was held at Kværner Masa-Yards Arctic Technology Centre, the predecessor of Aker Arctic Technology Inc, to develop a more efficient way of escorting large tankers in ice-infested waters.

One of the proposed solutions was a revolutionary idea: what if the icebreaker could break ice not only ahead and astern, but also sideways. In this way, a relatively small vessel could create a channel of broken ice that was wider than the icebreaker’s beam, a task that previously had required two icebreakers running alongside each other.

The result became known as the oblique icebreaker, an asymmetric ship with one side of the hull shaped to break ice as azimuth thrusters pushed the vessel nearly sideways through the ice.

As with every revolutionary invention, it took time to find someone brave enough to invest in novel and unproven technology. When it comes to icebreaking, more often than not it has been the Russians who have been willing to try something straight from the Finnish naval architects’ drawing boards and the oblique icebreaker was no exception.

14 SUMMER 2015 www.frontierenergy.info

On December 8 2011, more than ten years after the concept of sideways icebreaking was developed, patented and presented to the public, the Russian Ministry of Transport placed an order for a €76 million icebreaking multipurpose emergency and rescue vessel based on Aker Arctic’s oblique icebreaker concept. The vessel, which could also utilise its unique operating mode for oil spill response

As with every revolutionary invention, it took time to find someone brave enough to invest in novel and unproven technology operations in ice-free waters, would be built by Finland’s Arctech Helsinki Shipyard in co-operation with Russia’s Shipyard Yantar JSC in Kaliningrad. The ship was launched on December 12 2013 and named Baltika after its intended operational area, the Baltic Sea. A modest-sized icebreaker, Baltika is 76.4m long, has a maximum beam of 20.5m and draws 6.3m of water at design

draught. The icebreaker’s diesel-electric propulsion system follows the power plant principle with three Wärtsilä 9L26 main generators producing power for all onboard consumers. The propulsion system consists of three pulling-type Steerprop SP60PULL azimuth thrusters, two in the stern and one in the bow of the vessel, with a combined propulsion power of 7.5 megawatts.

Baltika is classified by the Russian Maritime Register of Shipping with ice class ‘Icebreaker6’, a notation which requires continuous icebreaking capability in 1m level ice and sufficient structural strengthening for non-Arctic waters where ice thickness can be up to 1.5m.

The vessel entered service on December 30t2014, and the ceremonial hoisting of the flag was held in St Petersburg on February 20 the following year. About two weeks later, Baltika departed from St Petersburg for its maiden voyage to Murmansk and the Arctic.

After the vessel arrived in Murmansk, Aker Arctic’s four-strong team of test engineers boarded the vessel together with representatives from the builder and the ship’s owner. The upcoming voyage would take Baltika across the Kara Sea to

Photo: Aker Arctic

Aker Arctic’s revolutionary Baltika has set the standard for manoeuvrability in ice in the Arctic and could be the blueprint for operations elsewhere, writes Tuomas Romu, who has been involved with the project since its inception

ICEBREAKING

the Gulf of Ob and the newly-built port of Sabetta. The purpose of the trip was not only to verify the vessel’s icebreaking performance through official ice trials, but also demonstrate its full range of operational capabilities in difficult ice conditions during the worst part of the year and, if possible, even find out new ways of operating the unique vessel.

With the measurement systems, which not only recorded telemetry from the showed the speed exceeding three knots navigation and propulsion control systems when breaking the same ice stern-first. but also measured ice-induced hull loads Over the course of the voyage, the directly from steel structures, set up and vessel’s manoeuvrability in ice was other equipment such as ice coring drills also found out to be excellent. Baltika and chainsaws safely stowed onboard, could turn almost on the spot and when Baltika left Murmansk on March 2015. extensive tests were carried out in the The first waypoint was just above the Kara Sea, the oblique mode worked northern tip of Novaya Zemlya. extremely well. Surprisingly there While sailing around the Norwegian was hardly any coast, Baltika had rolling motion encountered rough during sideways seas and winds The oblique icebreaking up to 30 m/s. icebreaker concept holds great once the vessel While icebreakers started moving; it in general are potential as a highly capable assumed a small known for their ice management vessel angle of list which poor sea-keeping remained nearly characteristics, constant while according to the the icebreaker left a wide channel of crew Baltika had behaved extremely well broken ice in its wake. It was also found despite the asymmetric hull. This was out that while it was extremely difficult largely due to the fact that the icebreaker to steer the vessel sideways using three is fitted with a passive roll reduction tank azimuth controls in manual mode, when that arrested the rolling motion after a the special dynamic positioning system few cycles. The master stated that in his developed by Navis Engineering was opinion a vessel like Baltika could depart engaged and the heading angle selected, for a rescue operation even in harsh operating the oblique icebreaker was weather. Indeed, just outside Murmansk relatively simple and straightforward.

Baltika encountered waves up to 4mhigh.

Out of curiosity, Baltika’s special oil During the following three weeks, recovery mode was also tested by first Baltika went through a number of breaking an 80m-wide channel and then performance and operational tests in different ice conditions, and Aker Arctic’s using the vertical side to push and plough the ice floes aside, generating a vast iceteam measured the ice properties in the free area. This method could open new test area. The first set of tests was carried avenues for ice management operations. out in 40 cm level ice in the Kara Sea, Official trials only took a few days where the oblique icebreaker achieved a of the three-week maiden voyage. Day speed of over 11 knots in ahead and over by day, Baltika’s crew gained more 10 knots in astern directions. experience and confidence in operating When the ship was taken to the Gulf of the vessel. While model tests generally Ob, where the extremely hard freshwater give a prediction for the vessel’s ice was measured to be up to 122 cm quantitative icebreaking performance, thick in the test area, Baltika could still the true operational capabilities are only break ice in a continuous motion – albeit found out through experience. Initially, at a walking pace – when proceeding some thought Baltika to be small and forwards. This was well beyond the under-powered for the prevailing ice vessel’s design icebreaking capability. conditions, but while underway, the The real surprise came after the ship oblique icebreaker showed that it could was turned around and the instruments

Baltika – cutting-edge technology

match and sometimes even surpass twice as powerful conventional icebreakers in terms of operational capability in the prevailing ice conditions of the region.

On one occasion, Baltika’s performance was even complimented by the highest local authority, the master of the Russian nuclear-powered icebreaker. In addition, Baltika demonstrated special manoeuvres such as clearing a quayside of ice in the port of Sabetta by utilising the oblique mode, a manoeuvre that is not possible for any other icebreaking vessel currently in service.

While the oblique icebreaker concept has generated much interest over the years, some have doubted the unconventional asymmetric icebreaker design. However, now that Baltika has been tested in full scale and the vessel performed beyond expectations, Aker Arctic expects renewed interest in the concept and its derivatives.

As the Arctic offshore projects may be picking up in the near future, the oblique icebreaker concept holds great potential as a highly capable ice management vessel.

In this task, an asymmetric vessel could either provide the same level of service as icebreakers of more conventional design but with less propulsion power – and consequently lower emissions and operational expenses – or be equally powered but vastly more capable.

Icebreaking vessels are also needed elsewhere for more conventional missions.

For example, there has been discussion in the United States about building a second icebreaker for the Great Lakes to accompany the USCGC Mackinaw.

An icebreaker of this type would have to be small enough to fit the locks of the St Lawrence Seaway, and from time to time it would also have to assist and escort the largest Lakers, cargo ships whose size dictates they will never be able to leave the Great Lakes.

What could be a more suitable solution for this than an icebreaker that could break a channel wider than its beam?

www.frontierenergy.info SUMMER 2015 15

ICEBREAKING

Baltika – a statement of intent for Finnish industry

Petri Tolonen

FULL POWER AHEAD R

auma-headquartered Steerprop has established a reputation as the most reliable supplier in the demanding azimuth propulsion business, assembling its products from components manufactured by a network of sub-contractors and serving clients in countries including Russia, China, the US and Norway, the company’s largest customer base.

The company, located in what Managing Director and President Petri Tolonen describes as the ‘Silicon Valley of azimuth technology', celebrates itst fifteenth anniversary this autumn amid major challenges posed by the fall in the price of oil and the threat of sanctions against Russia. A combination of these factors helped pull turnover down marginally in the fiscal year to June 2015 but Mr Tolonen is confident the protection afforded by its sub-contractors network and growth of its sales agency network will provide some immunity to any downturn and that Steerprop will comfortably retain its status as second only to ABB in terms of the number of

16 SUMMER 2015 www.frontierenergy.info

references of icebreaker applications.

“The next couple of years will be slower but this will give us the opportunity to build up our service side,” says Mr Tolonen.

Steerprop’s most recent references include the contract signed in 2013 to deliver propulsion systems to three icebreakers ordered by the Russian Ministry of Transportation from United Shipbuilding Corporation including NB508, the revolutionary oblique icebreaker and the first of its type to travel sideways through ice rather than head-on.

Two of the vessels have been built in Russia at the Vyborg Shipyard and one, the 11,650 gross tons NB-509, has been contructed at Arctech Shipyard in Helsinki. At 119.8m long, the icebreaker offers propulsion power of 18MW consisting of two full-circle azimuth thrusters and speed of 3.5 knots at 1.5m ice level.

These vessels will be operated by the Federal State Unitary Enterprise Rosmorport in year-round activities in the Baltic Sea and Arctic in temperatures

around -40 degrees Centigrade. Its main tasks will be icebreaking and towing vessels and other floating structures in ice and open water.

One of the latest references is also is the revolutionary oblique icebreaker and the first of its type to travel sideways through ice rather than head-on.

The Steerprop Azimuth Propulsor design is kept as simple as possible to maximise reliability by minimising the amount of components that may wear.

The propulsors are equipped with robust electric steering gear as electrical steering is accurate and is energy-efficient as it uses power only when actively turning and thus produces significantly less noise than hydraulic steering systems.

Smaller Steerprop Azimuth Propulsors utilise both pressurised and immersion lubrication. The gears and bearings in the upper gearbox are lubricated with pressurised oil jets, while the components in the lower gearbox are immersed in oil.

Larger Steerprop Azimuth Propulsors are pressure lubricated in both gear sets.

As the superfluous oil from the gear boxes

Photos: Frontier Energy

From its hub in the heart of the 'Silicon Valley of azimuth technology’, Steerprop is establishing an international reputation for innovation and technical know how

Image: Steerprop

ICEBREAKING

Contra Rotating is moved into the oil Propellors (CRP) tank, no extra energy propulsors is consumed by oil combine the churning by the gear advantages of a wheels. Utilising pulling propeller pressure lubrication with the benfits in both gearboxes of dual-end also reduces the amount push-pull CRP of lubrication oil the technology. propulsor requires.

In Steerprop The steering dual-end CRP tube is equipped technology, with three lip the propulsive seals installed load is divided against a machined between stainless steel liner. independent The outermost seal is 3D picture of SP 60 PULL used in the pulling and pushing turned downwards revolutionary Oblique icebreaker Baltika propellers located to minimise the on opposite ends of accumulation of the propulsor body. This dirt that may cause load distribution allows the propulsors wear on the seals. The three lip seals form two chambers filled with pressurised to use larger and slower propellers to greatly enhance the propulsors’ eficiency. oil in the steering seal. The chambers are Dividing the propulsive torque also has connected to the propeller shaft seal and other benefits. enable the entire seal system to be bled This load distribution allows the and flushed without removing the lower propulsor to be reinforced against ice part or the unit. or other debris without compromising The propeller shaft seal is sealed using propulsive efficiency. As each component quadruple ring-type lip seals. The space between the seals is filled by oil lines from is subjected to lesser load, the components’ mechanical the steering seals. reliability is also The oil chambers enhanced. on the propeller The propulsor shaft seal are “The next couple of years body is pressurised by will be slower but this will hydrodynamically the seal oil tank. give us the opportunity to optimised to The seal oil tank further improve is equipped with build up our service side” efficiency. The instrumentation Petri Tolonen pulling propeller‘s to monitor the slipstream interacts condition of beneficially with the seal system. the bulbous front of the propulsor body.

Larger Steerprop Azimuth Propulsors This interaction effectively cancels out are equipped with a shaft seal that uses the drag caused by the propulsor’s body. pressurised air to eliminate even the In addition, the rear propeller recovers a smallest oil leaks from the seal. major part of the rotational energy from Ducted Steerprop Azimuth Propulsors the pulling propeller’s slipstream. This use the company-designed HJ3 high swirl recovery improves the propulsor’s perfomance nozzle which provides efficiency and changes the nature of the 5-6% improvement to bollard pull and propulsor’s total slipstream. improves free running efficiency by 10Steerprop, used the Aker Arctic test 15% in comparison to standard nozzles. facility to evaluate different propulsion The propeller is situated in the diffusor configurations and propulsor installation part of the nozzle, enabling the nozzle angles in varying ice conditions to to be installed near the pivoting axis of ascertain the best propulsive efficiencies. the propulsor. This reduces the required Reflecting on the tests, Senior Sales steering torque and the amount of power manager and naval architect Hannu needed to steer the vessel.

Jukola described azimuth propulsion The company’s best-selling Steerprop

systems as a most potent tool for icemanagement and said CRP propulsors had been found to have particular advantages in ice-management and icegoing applications due to the unique nature of the CRP slipstream.

The propulsors could be used to widen fairways as the vessel moved along the fairway, blew away or broke up ice ridges, or relieved ice-pressure from Arctic offshore installations, he said.

In addition, an icebreaking vessel with azimuth propulsors was also capable of ‘traditional’ icebreaking practices including ice-milling.

Rolls-Royce service Some 8,000 Rolls-Royce azimuth thrusters have been delivered from the Rolls-Royce facility in Rauma in little more than 50 years since delivery of the first Aquamaster® azimuth thruster.

Of the thrusters produced in Rauma the UUC range is the largest and most powerful. They are underwater mountable and deployed typically on drillships and semi-submersible rigs as well as on vessels including icebreakers, tugs and offshore vessels.

In May this year Rolls-Royce delivered its 1,000th UUC underwater mountable thruster. The largest UUC thrusters from Rauma are rated at 7.5Mw and can weigh in excess of 75 tonnes. And, according to Rolls Royce, the UUC range commands a 70% market share for drillship propulsion. Aquamaster® thrusters were originally a diversification for the Hollming shipyard in Rauma which had been established to build vessels as war reparations to the Soviet Union. The first in the UUC range was delivered for drill rig applications in 1998. Designed primarily to operate in Dynamic Positioning mode, the thrusters can be removed and installed without drydocking the vessel and they are installed on over 70% of the global semi-submersible drilling rig and drillship fleets. Two of the world’s largest floating structures are powered by UUC thrusters from Rauma. The first, the Pioneering Spirit, owned by Allseas, is a heavy lift vessel used for decommission oil platforms– powered by 13 UUC thrusters. The twin hulled, construction vessel started work offshore Norway this summer, decommissioning the YME facility. The second, Shell’s Prelude, the world’s first floating liquifeid natural gas production facility, features three large UUC thrusters, for position keeping.

www.frontierenergy.info SUMMER 2015 17

ICEBREAKING

Developing and delivering innovative solutions in some of the most demanding environments

F

orty years have passed since the icebreaker Urho was delivered from Wärtsilä Helsinki Shipyard and, as with sisterships the Sisu, built a year later, the Atle, Ymer and Frej, the vessel remains a flagship of the Arctia Shipping fleet and a powerful reminder of Finland’s pre-eminence in icebreaking.

Arctia, which operates in Helsinki from the so-called ‘Off Ice’ floating office built two years ago by Western Shipyards and Shippax from recycled materials, has played a leading role in icebreaking and ice management for over a century. The company’s icebreakers operate along the coastlines of Finland - and other countries as permitted by fleet capacity - as required by the winter conditions and ensure reliable sea connections for commercial use during the winter season.

The icebreakers assist merchant vessels

Jukka Salminen

18 SUMMER 2015 www.frontierenergy.info

Ensuring reliable sea connections during the winter season

marked a watershed for Finnish winter in a variety of ways including opening navigation and a prototype for future fairways, towing, freeing ice-bound development. For the first time a scale ships, and ensuring the safety of vessels. model was used in ice trials to help the The time expended on icebreaking tasks design process. A test pool built in Vallila varies annually, ranging from 150 – 1100 in Helsinki, with funding from Exxon, was operational days. used to simulate an icebreaker's ability to “We face growing competition but force a path through ice of even thickness, remain the only shipping enterprise to as well as through pack ice. provide environmentally-friendly, safe, In comparison to its predecessors, the efficient and economical icebreaking displacement of services in Finnish the vessels in the waters,” says Jukka Urho class was Salminen, Key 60%, while their Account Manager.

Arctia Shipping’s fleet is ice resistance was The Urho and a powerful reminder of reduced by oneSisu were designed third. The fore to secure yearFinland’s pre-eminence propellers rotate round operations in icebreaking inwards, thrusting at Finland's 23 water under the winter ports and hull when the assist vessel traffic vessel is travelling forward. Water flowing in all types of weather and ice conditions along the vessel's sides helps to reduce in the Baltic Sea. Arctia says there have friction between the ship's hull and ice. been no interruptions to traffic in the Bay The rear propellers rotate outwards, of Bothnia due to ice conditions since the causing the crushed ice to be thrust vessels started operations. under the unbroken ice sheet, allowing Five diesel engines produce power up to 16,200KW to four propellers, equating the broken channel to remain open.

Furthermore, the icebreakers of the Urho to the electric power of a small town class were constructed with a wider hull which guarantees that the vessel is able than traditional icebreakers, in response to operate efficiently in heavy pack ice to the growing average size of ships in the Baltic Sea with 21 crew and chief navigating in the Baltic Sea. officer working during one of the two The novel bridge design allows daily shifts.

Earlier this summer the Urho docked in 360-degree visibility, making it easier to maintain visual contact with the Naantali for a major overhaul which saw ship on tow. The vessel is equipped the icebreaker’s sides, bottom, decks and with a heeling mechanism for improved deckhouse painted. The rear axles were ice-breaking capability in severe ice pulled out and the thrusters removed conditions. Three pumps transfer water for inspection. The seals of the fore onboard the vessel, allowing it to heel propellers, the mechanical fuel filters and thirteen degrees in 50 seconds. the pumps were replaced. The sewerage One of the design criteria for Urho's system was serviced, the bilges washed construction was its planned role as and the vessel’s pipelines refurbished. a public relations vessel for senior Self-service shelving and countertops in government executives and the vessel has the mess were replaced as was the audiotwo saunas, a swimming pool, a gym and visual system in the lounge and new a library. Crew and guest quarters are Simrad dry compasses were installed to located above deck and not below as on replace the old Anschutz models. traditional icebreakers, thus helping to The naming of the Urho by Finland’s keep engine noise to a minimum.

President Urho Kekkonen in March 1975

Photos: Arctia & Frontier Energy

Arctia Shipping

ICEBREAKING

Finnish Meteorlogical Institute Using satellite technology to develop an internet network that works equally well at sea as on land

“

Ice compression is the most serious threat to icebreaker operation both in terms of navigating in ice and for those seeking assistance from an icebreaker, says Patrick Eriksson, Product Manager Customer Services and Media at the Finnish Meteorological Institute in Helsinki.

“Operators must have the most reliable data available quickly for deploying their vessels safely and cost-effectively in some of the harshest and most environmentallydemanding conditions in the world,” he says. “Our services encompass logistics, equipment performance, staff, technical solutions and electronics, identifying local conditions and highlighting the challenges of operating in ice.

“Data is needed for the design of structures as well as to support operations and this incorporates weather observation and forecasts, sea state and ice thickness. This is why the development of satellite data is paramount.

“The use of satellite information to develop software to create data bases capable of storing, managing and presenting the most up-to-date information on ice management, wind speed, wave height and sea speed for users ashore and at sea in respect to relevant vessels and offshore structures is a major challenge for our research teams.”

“Our goal is to use satellite technology to develop an internet network which

works equally as well at sea as it does on land to ensure operators have the crucial information they need. We are seeking to improve numerical ice pressure modelling for operational purposes by focusing on compression modelling and analysis of satellite information with information on ice thickness, particularly in the Baltic Sea. “It is our intention that operators will be able to receive cheap satellite information every 15 minutes on a user-friendly colour system with no

"Operators must have the most reliable data available quickly" Patrick Eriksson requirement to buy a satellite agreement.

This will improve their decision-making processes considerably,” says Mr Eriksson.

System testing is due to start by the end of the year.

Regular satellite movements over specific locations allow comparison of consecutive images to determine the drift pattern of particular ice fields.

Typically this is done by identifying the same ice feature in an image pair and by calculating its displacement which,

says Mr Eriksson, is an efficient means of acquiring a detailed view of how ice distribution evolves, indicating the convergence and divergence zones.

But he cautions that pressure can change behaviour and distribution rapidly and because satellite images are by definition historical snapshots, caution needs to be exercised during interpretation.

The Institute has pioneered a number of important initiatives including Helsinki Multicategory Sea Ice Model (HEMI) which resolves both rafted and ridged ice types and uses a viscous-plastic rheology, the device used to describe how ice interaction affects drift, though it does not seek to be a characterisation of the actual physical stress state of the ice cover.

In another important project, named SAFEWIN, data was collected from icebreakers and merchant vessels; there was overall agreement with the location of the reports and the daily average presence of modelled compression in a 10 NM scale, though the correspondence of the magnitudes was poor, says Mr Eriksson.

In addition to this, AIS data was used to track correlations between vessel speeds and forecast pressure, and there was some agreement with ship speed reduction. However, the AIS data lacked information on speed variation and, as a result it could not be connected reliably to the assumed compression events.

Photo: Frontier Energy

At the forefront of ice modelling The Arctic Research Centre at Sodankylä, where operations date back to the mid-nineteenth century and the Climate Change Research Group in Helsinki, are the key components of the Finnish Meteorological Institute’s Arctic Research Division. The Institute, which employs some 400 people and is 50%-funded by the government, is at the forefront of numerical ice modelling and ground-breaking research into the physical characteristics of ice and the effect of this on the construction and operation of vessels and, in particular, the development of high technology information systems between ship and shore. Ice services for the Baltic Sea and Arctic include satellite image reception and processing, highly developed SAR image processing, COSMO-SkyMed, Sentinel, MODIS, NOAA, Suomi-NPP and HELMI.

Helsinki

www.frontierenergy.info SUMMER 2015 19

ICEBREAKING

Arctech: A bold With questions about its future now settled, Arctech is seeking to strengthen its impressive orderbook

“

This is a Finnish company under Finnish management, with some 560 employees and Finnish knowhow, operating 365 days around the year on an orderbook for icebreakers and standby vessels stretching into 2017,” says Arctech Managing Director Esko Mustamäki.

“We are confident that some nine months after United Shipbuilding Corporation became sole owner we can now move ahead, matching business needs to our technical innovation to develop the best solutions for the industry,” he says.

European Union sanctions against Russia and state-owned United Shipbuilding Corporation could yet hinder the progress but to date at least, icebreakers deployed in support of the offshore industry have not been targeted by the sanctions and Mr Mustamäki believes the company is ready to build on a history which has seen it construct the first icebreaker for the Port of Vyborg over a century ago and and deliver some 60% of the current operational fleet.

Arctech’s orderbook is worth some Euros 600m and the company currently has two icebreakers under construction, the Murmansk (due for delivery this autumn)and the unnamed number 510, under construction in Helsinki and due for delivery next year, plus a Euros 100m platform supply vessel due for delivery in June 2016 and three standby vessels, all for Sovcomflot.

The 16MW Murmansk, constructed in cooperation with Vyborg Shipyard for the Russian Ministry of Transport, was launched in March this year. The vessel measures 119.8 m in length and 27.5 m in breadth and the four main diesel generator sets have the total power of 27MW. The total propulsion power is 17.4MW, consisting of two fullcircle azimuth thrusters.

20 SUMMER 2015 www.frontierenergy.info

Main tasks are icebreaking and assisting heavy vessels in ice, towing vessels and other floating structures both in ice and in open water. The vessel is able to operate in temperatures as cold as -40°C and the maximum icebreaking capability is 1.5m.

In addition to these tasks the vessel will be used for fire fighting on floating objects and other facilities, assisting vessels in distress in ice and open water and cargo transportation.

Speaking at the launch ceremony in March, Mr Mustamäki said: “Icebreaker Murmansk is of an icebreaker type in the Russian icebreaker renewal programme intended both for the Baltic Sea as well as Arctic conditions.”

The standby vessels, under construction at a combined cost of US$380m, are to be deployed in rescue and oil spill response duties in North East Sakhalin for Sakhalin Energy Investment Co. The 95m vessels, based on Aker Arctic's Aker ARC 121 concept, have accommodation for 98 people and will be capable of operating independently in 1.5m ice thickness.

Since establishing the link with STX in 2010 the company has forged an impressive reference list, having received its first order from Sovcomflot in December that year for two icebreaking platform supply vessels similar to the SCF Sakhalin, each costing US$100 million.

The vessels, Vitus Bering and Aleksey Chirikov, were delivered in December 2012 and April 2013, respectively.

Development of the oblique icebreaker concept dates back to 1997 when engineers at Kværner Masa-Yards Arctic Technology Centre devised a new way of assisting large tankers in ice-infested waters.

Escorting large ships up to 40m wide had traditionally required two conventional icebreakers with a beam of 23–25m. This was not efficient or economical and the design team created a triangle-shaped vessel with three azimuth thrusters pushing the asymmetric hull with a 50-degree angle in ice to open a

Year-round operations underscore growing confidence

50m channel behind the vessel.

In December 2011, Arctech signed a Euros 76m contract with the Russian Ministry of Transport for the construction of an icebreaking multipurpose emergency and rescue vessel for the Federal Agency for Maritime and River Transport of Russia.

The vessel was designed to open a 50m channel in 60cm ice when going sideways.

Initially, the hull of the first oblique icebreaker was to be produced by Shipyard Yantar JSCin Kaliningrad. The keel was laid in July 2012 but instead of launching the unfinished hull in Kaliningrad and towing it to Helsinki for outfitting, the blocks were transported to the Finnish capital and the hull was assembled there.

Named the Baltika, the vessel was floated out for outfitting in January 2014 and began first sea trials in March that year. After being towed to Kalingrad the vessel was taken to St Petersburg and delivered to Rosmorrechflot last December for deployment with FGI Gosmorspassluzhba, the Russian Marine Emergency Rescue Service.

At 76.4m long, the vessel has a maximum beam of 20.5m and draught of 6.3m metres. It has a diesel-electric propulsion system built around the power plant principle in which the main generators provide electricity for all shipboard consumers, including the propulsion system.

Three Wärtsilä 9L26 main generators each produces 3,000 kW and are capable of running on low sulphur fuel oil.

The Baltika is propelled by three 2.5 MW azimuth thrusters manufactured

by Steerprop, two in the stern and one in the bow and it is capable of moving in 1m level ice at 3 knots in both ahead and astern directions. When operating in oblique mode, service speed is 14 knots and the vessel’s operational range is 4,500 nautical miles.

The vessel is classified by the Russian Register of Shipping, manned by a crew of 24 and has accommodation for an additional 12 people.

Photo: Arctech

NEW FUTURE

ICEBREAKING

ABB sets the ABB's Finnish operations – a centre of excellence

The safety of seaborne transport in the Baltic Sea is under political and regulatory scrutiny as never before

ABB’s scope of supply includes turbochargers, generators, switchboards, transformers, electric drives, propulsion control and the Azipod® propulsion units.

“Operating LNG carriers in ice-locked lobal power and automation waters year-round requires the highest technology specialist ABB has standards in safety and efficiency,” said Velilong considered its Finnish Matti Reinikkala, head of ABB’s Process operation to be a centre of excellence and, Automation division. “Azipod propulsion with some 30 icebreakers on contract it has proved to be the technology of choice holds an imposing 70% market for more than 30 ice-going vessels, share, according to Samuli including shuttle tankers operating Hänninen, Area Sales Manager, for Sovcomflot out of Varandey “The Finns are the leaders in Arctic shipping Ice Vessels Propulsion Products and for Norilsk Nickel’s Arctic in Helsinki. technology because they’ve done so much of Express container ships.

ABB’s influence was According to Mikko Niini, it. ABB chose to house their Azipod factory underscored in 2014 when the senior management advisor at in Finland. That’s where the knowledge is. group beat off stiff competition Aker Arctic Technology, which to win an order to supply designed the ice-breaking LNG You can see this core technology that is based electric power plant and carriers and also conducted an in Finland spreading out across the world as Azipod propulsion units for an extensive feasibility study on these projects develop” Rob Hindley, icebreaker to be constructed for achieving reliable operations in the Finnish Transport Agency at Sabetta – and concluded that Arctic technology lead specialist at Arctech Helsinki Shipyard. four different support vessel types Lloyd’s Register of Shipping While owned by the Finnish were considered necessary for the Transport Agency, the year-round activities- economies vessel’s operations will be put of scale are essential for regular out to tender.

Arctic shipping to be viable, meaning the record of icebreaker electric propulsion The vessel is due for delivery in 2016 size of vessels operating there must increase. technology to the Finnish market back to and due to be deployed in the Baltic Sea. The first of the 16 new ice-breaking the delivery of the icebreaker Sisu to the It features dual fuel capability and as such Finnish government in 1939. tankers is due to be commissioned will be the first icebreaker able to operate at Daewoo Shipbuilding and Marine ABB followed this with a landmark using liquefied natural gas (LNG), thereby contract to supply electrical power and Engineering (DSME) in South Korea. The reducing emissions and fuel costs.

Azipod® propulsion units that will power propulsion systems for the first LNG A key element of the vessel will be its carrier - with options to equip a 15 the 170,000m3 LNG carriers will have a three-pod propulsion solution, with a further vessels – in the project headed total output of 45 megawatts. The vessels 6MW Azipod unit at the bow and two

by Russian gas producer Novatek to will be built with ice strengthening of 6.5MW units at the stern included to transport LNG from the Yamal peninsula ARC 7 category along an ice class scale optimise efficiency and manoeuvrability, in Northwest Siberia to Asia and Europe. that goes up to 9. particularly in ice-ridge conditions.

The LNG will be shipped from Sabetta According to Mr Niini, the new vessels Commenting at the time, Heikki port on the new 170,000m3 LNG will be the start of further penetration Soljama, head of ABB’s Marine and carriers built to ice-breaking capability into the Arctic. “Looking at going east Cranes business unit said: “The safety of ARC 7, an ice-class scale that goes of the Taymyr peninsula or through the of seaborne transport in the Baltic Sea is up to 9. Shipment will be made to Asia Northwest Passage is the next step. We need under political and regulatory scrutiny via the Northern Sea Route in summer to move step-by-step into the unknown. as never before, making the Finnish months resulting in substantially reduced Not only are we talking larger vessels and Transport Agency preference for ABB’s delivery times compared to transit via more powerful propulsion units, but harder power and propulsion technology based traditional routes, as well as cutting fuel ice calls for new dimensioning principles, on our proven references. consumption and ship fuel emissions. maybe even new materials.”

G

Photo: ABB

AGENDA “Once more, the system’s performance and its ease of maintenance have proved critical factors in the selection process. It is no coincidence that the most forwardlooking icebreaker designs invariably feature podded propulsion.”

ABB has delivered electric propulsion systems to more than 80 icebreakers or ice-going vessels with a propulsion power of up to 36 MW and traces its supply

www.frontierenergy.info SUMMER 2015 21

LNG/FLNG

FLNG solutions are ideal for unlocking stranded gas fields

THE SOLITUDE SOLUTION

Elisabeth Tørstad, DNV GL Oil and Gas chief executive

22 SUMMER 2015 www.frontierenergy.info

F

or years, operators around the world sitting on stranded gas deposits have scratched their heads about what to do next - a proven reservoir and a valuable resource, but no easy answers when it comes to extraction and export. The quest to develop floating liquefied natural gas (FLNG) solutions - that are in equal measure viable, dependable and safe - has tested the industry for years. It has been seen as a potential solution to unlocking deposits where conventional development may not be economic or even possible.

But just as LNG technology has marched on through recent decades, the pace of innovation in the FLNG segment is likewise accelerating. FLNG concepts are now starting to be deployed in areas such as Africa and Asia, although these are still early days for this nascent industry niche. But what about the Arctic? For all the myriad challenges faced by operators off the shores of Indonesia or Cameroon, then these can be multiplied tenfold in the icy waters in and around the polar regions.

The oil and gas industry does not shy away from these kinds of challenges, however. While the Arctic’s eye-opening oil potential is no doubt the primary lure for many, the region is also believed to contain huge quantities of natural gas too. And, by definition, away from major population centres and infrastructure,

it is gas that is likely to be every bit as stranded; much more so, in fact.

A number of innovative FLNG solutions are taking shape that could, potentially, and in years to come, offer a solution to operators puzzling over what to do with their Arctic gas finds.

Economics and innovation FLNG technology is developing rapidly as part of the industry’s quest for resources in more remote waters. A number of concepts have been discussed, but only a few are currently under construction, after many oil and gas companies experienced double-digit growth in both capital and operational expenditure over the last decade.

The fall in oil prices could slow this enthusiasm, of course, but a lot of ground has been made already.

Foreseeing the need for more remote projects to be able to overcome even more challenging cost barriers, whilst still meeting increasingly stringent safety and environmental standards, DNV GL recently embarked on a new innovation project to explore the future of LNG technology.

It has developed a new unmanned FLNG concept that overcomes many of the challenges currently faced by those looking to unlock the potential of remote offshore gas fields.

Called Solitude, the concept demonstrates

Photos: DNV GL

Floating liquefied natural gas solutions have challenged the industry for years. As the technology begins to gain ground in other parts of the world, a few forward-thinking companies are starting to ponder ways in which it could play a part in the development of stranded gas supplies in very remote places, like the Arctic

LNG/FLNG

DNV's Solitude FLNG concept could help shape the future development of remote Arctic gas projects

how technological advances – most of the technology used is already within reach — can be combined into a solution that offers a 20% reduction in annual operating expenditure, only adding a few percent increase in capital expenditure.

And the potential for deployment in the Arctic is enhanced with the subtle shift in emphasis from maximum efficiency to maximum reliability, a key requirement in such an inaccessible location.

“Solitude has been developed with maintainability foremost in mind,” says Elisabeth Tørstad, DNV GL’s Oil and Gas chief executive. “By changing the focus from maximum efficiency to maximum reliability, and selecting robust processing options with built-in redundancy, we were able to develop a solution that ensures production levels and boosts the economic viability of FLNG projects.”

Autonomous solutions Solitude makes use of advanced but mainly available technology to provide its power. Power that would otherwise be generated by high-maintenance gas turbines can, as an example, be generated by fuel cells. This reduces the unit’s environmental footprint.

Equipment throughout the FLNG is modularised and monitored from shore with much of the routine maintenance and fault correction carried out by selfprogramming autonomous inspection and maintenance units (robots). The topside has a system of rails that run along each process train, providing the robots with access to all equipment.

Wireless sensor networks act as eyes, ears and noses, feeding information to a condition monitoring system that oversees

shorelines of the respective countries. fault detection, proactive maintenance In a sense, they mirror conventional and repair planning.

LNG developments elsewhere, with the Many personal safety risks are exception of the extreme cold location. eliminated since there will be no one The challenge of harnessing remote, living on board or working on the topside during normal operation. When people do potentially smaller gas quantities, situated many miles from the shoreline, calls for enter for large maintenance campaigns, an entirely different the topside would set of skills. DNV be prepared for GL developed a safe working And the potential for the Solitude environment. A deployment in the Arctic concept under its new support and Extraordinary is enhanced with the accommodation Innovation Projects vessel concept subtle shift in emphasis initiative. and its associated from maximum efficiency The company, docking system on which invests the FLNG further to maximum reliability, a five percent of its boost the safety of key requirement in such revenue in research interventions. an inaccessible location and development, “Existing looks to provide frontier oil and foresight for the gas projects have future, by taking a fresh look at critical resulted in tremendous technological industry challenges, in this case FLNG. developments, particularly in the subsea “These projects are our way of thinking realm, and Solitude draws on this,” out loud,” says Tørstad. “Our aim says Tørstad. “Operators are already is to present high-level concepts that controlling subsea installations and can form a basis for discussion and be simple, fixed offshore installations from further developed in collaboration with shore. Given the ongoing advances the industry. We see Solitude as a new in autonomous systems and remote opportunity for the future.” operations, unmanned offshore Of course, this remains a glimpse installations are a natural development into the future - the prospect for any over the next few decades.” deployment of an unmanned gas platform deep in the Arctic remains some distance Future look off - but it is food for thought, as the LNG development is by no means new industry takes new strides into the region. in the polar region, of course. Norway And it is by no means science fiction. and Alaska already maintain large-scale The idea is very much rooted in reality.

LNG plants, while Russia is currently “While Solitude is a holistic concept, putting together its Yamal LNG project. many of its solutions can be implemented All of these ventures, however, are located independently – and some are already either onshore or very close to the northern available today,” adds Tørstad. www.frontierenergy.info SUMMER 2015 23

OIL SPILL TECHNOLOGY

Marine and aerial-based technologies are being used together against oil spills

BY AIR, LAND AND SEA

T

he detection of oil spills, no matter how small, and the ability to deal with them, is a fundamental part of any upstream project.

It is true anywhere, and in any oilproducing region, the world over, but the spotlight on environmental performance is intensified significantly in the Arctic.

While critics argue that the ability in dealing with spills in remote locations like the far north should be a deterrent to any drilling or exploration, others are seeking solutions. The energy industry has, historically, worked together to identify answers to problems that, for years, may have seemed unattainable. Certainly, in the Arctic environment, that means pushing the boundaries of technology and deploying all available assets, by sea, by air, and on land.

Indeed, in the years since the Deepwater Horizon oil spill off the US Gulf of Mexico, new innovations, materials and strategies have come out thick and fast and are now available to the market. These have also embraced other methods of cleaning polluted sea water and land, using tools other than chemical dispersants, providing an environmental boost too.

Bringing this amalgam of technology and solutions together, and delivering it by any means possible, requires great collaboration and constant innovation. It means, should 24 SUMMER 2015 www.frontierenergy.info

another incident occur, even in hostile climates such as the Arctic, industry should be better placed to contain the damage so that the impact is less severe.

The use of herders enhance the use of in situ burning

Air support This combination approach was evident in April, when the Arctic Response Technology Joint Industry Programme (JIP) conducted a series of first-of-their-kind tests of an aerial oil spill response system for the offshore Arctic. The JIP is a collaboration of members from the international oil and gas industry to enhance Arctic oil spill capabilities under the auspices of the International Association of Oil and Gas Producers (IOGP) The trials were the first operational combination of aerial application of 'herders' and in situ burning, where herders were applied to an oil slick by manned helicopters.

Herders have been studied since the 1970s and work by causing oil to thicken

and contract into a smaller surface area.

The use of herders enhance the use of in situ burning, a response option particularly suited to remote, ice-covered waters, but which requires a slick to be thick enough to burn. "Validating this combination is potentially a step change for offshore oil spill response, with response times much faster than vessel support," the JIP said in a statement.

This year, a total of five successful tests were conducted over a 10-day period, it said. The trials took place in a purposebuilt test basin at the Poker Flat Research Range outside Fairbanks, Alaska, in collaboration with the University of Alaska Fairbanks and SL Ross Environmental Research. A simulated ice field was created in the 8,400 square metre, fully-lined, above-ground basin.

It's another step forward and an exciting new solution to the oil spill challenge.

In the USA, two herders have been placed on the US EPA National Contingency Plan (NCP) Product Schedule and are now commercially available but there are no other jurisdictions as yet that have approved herders for use in their waters.

Environment Canada is soon expected to introduce regulations to approve the use of spill-treating agents offshore.

Photos: Gobbler Boats

Oil spill detection and response technology must be ready to counter any emergency, wherever it strikes. The industry is responding with a new set of innovations for the Arctic offshore environment

OIL SPILL TECHNOLOGY

On the water Another recent development in the fight against spills is the arrival of the new Gobbler 290 Rapid Response Oil Spill Recovery Vessel (RROSRV) from UK-based Gobbler Boats. "The patented Gobbler 290 OSRV addresses multiple scenarios," says Paul Jauncey, managing director of Gobbler Boats.

Founded in 2009 by expert boat builder Jauncey and his son Simon, together with an American partner Jose Suarez, Gobbler Boats have developed a new and affordable type of oil spill recovery vessel which addresses oil spill scenarios of all types.

On display for the first time at the Seawork 2015 trade show, the new high speed vessels offer a high performance but cost effective solution for oil spill recovery for distances up to 150 nautical miles offshore. The new boats even scooped Seawork's coveted Spirit of Innovation award this year.

Structurally ocean certified by Lloyds Register, Jauncey says the new 29ft shallow draft Jet vessel is "globally unique". It boasts wheelhouse air purification, two person crew, hydraulic spark-free systems, touch-screen controls

and a range of skimmers to ensure reliable "Group working vessels ensure rapid containment of infinite quantities," adds and efficient 24/7 collection of waterless, recyclable oil up to 40 tonnes per hour, in Jauncey. "Whether deployed by ship in ocean emergencies, or launched by trailer/ all geographical locations. Time wasting ice-skid from shore, Gobbler is the ultimate discharge ashore is eliminated, while oil pollution solution." transfers directly to towed bladders.

From large multi national collaborative The new vessel has a hybrid mono-cat efforts and joint ventures, through to hull configuration which incorporates smaller boat builders and other companies a recovery bay at the fore with a run by passionate experts in their fields, hydraulically elevated mounting for the quest to find effective solutions for appropriate oil recovery equipment. The countering oil spills continues. equipment is held in its upper position for rapid transit to the incident where it is then lowered into its selfsynchronising recovery position. The special profile and configuration of the vessel’s hull provide good hydrodynamic lift for highspeed transit to offshore incidents, while also being highly stable during trawlspeed recovery operations.

The vessel’s high performance jet drive and 0.40m draft also facilitate shallow water operation, enabling it to reach coastline incidents which Inside the new Gobbler 290 rapid response oil spill recovery vessel many other boats cannot.

HIGH DEFINITION RADAR SYSTEMS

SEE MORE - SEE BETTER - WORRY LESS Rutter high definition radar systems help you SEE MORE and SEE BETTER through a familiar interface that requires minimal training. Our systems provide invaluable information for oil spill management, wave and current monitoring, ice navigation and detection and tracking of small difficult-to-see targets. Let us help you WORRY LESS by replacing uncertainty with information that reduces risk and results in safer, smarter work and asset utilization decisions.

www.rutter.ca

SATELLITE IMAGING

Satellite imagery adds an extra dimension to Arctic exploration

The Power of Satellites Minimising the environmental impact of Arctic exploration

A SPOT 6 Mosaic image of the Stikine icecap, Alaska/ British Columbia border

26 SUMMER 2015 www.frontierenergy.info

T

he search for hydrocarbons in the Arctic region is controversial.

The environment is fragile, ice coverage is decreasing and fears of oil production in such frontier locations are shaping how oil companies and environmental NGOs are reacting to the shifting landscape. While significant hydrocarbon resources are thought to lie beneath the Arctic seafloor, the region presents one of the most challenging locations for oil and gas exploration.

The technical difficulties of working in this remote area and the associated risks and harsh conditions are coupled with environmental concerns for the sensitive habitat and geo-political uncertainty.

Falling oil prices have resulted in a general scaling back of activity in the Arctic region. In order for any future exploration, development and production to be conducted responsibly, the latest technologies will need to be deployed to minimise disturbance to the environment and local populations. The application of observational data acquired by satellites and associated products and services, specifically designed for these conditions, are key tools to assist in addressing these environmental concerns and technical challenges.

Exploration has been ongoing in the Arctic since the 1970s, with most activity seen in Alaska and Greenland. Since these early days, sea ice has presented a significant hazard to offshore operations including ship traffic and offshore facilities. One of the most significant early applications of remote sensing in

the Arctic region was the monitoring of sea ice. By monitoring sea ice conditions and tracking the position of icebergs, hazardous areas can be avoided or mitigation strategies can be put in place.

Sea ice monitoring brings together a range of observation techniques including in-situ observations. Remote sensing has historically been achieved through using Synthetic Aperture Radar (SAR) technology from fixed wing aircraft, although more recently this has largely transitioned to satellite-based SAR, as it offers a wider choice of suitable sensors and acquisition advantages. Active radar sensors are well suited to arctic conditions as they have the ability to acquire data independent of lighting and cloud cover. The Airbus Defence and Space satellite constellation comprises both optical and radar sensors and offers the technology to support a reduction in environmental impact throughout the oil and gas production lifecycle in a number of ways.

Satellite images to monitor change Firstly, an extensive imagery archive enables the determination of environmental baseline conditions before exploration and the identification of environmentally vulnerable locations, which can assist with the development of an effective spill response plan. The establishment of baseline conditions is also important for distinguishing between

Photos: Airbus DS

Airbus Defence and Space’s Senior Geologist Michael Hall explains the role satellite imagery and related analysis-based products can play in minimising the environmental impact of exploration in one of the world’s most remote and vulnerable areas – the Arctic

SATELLITE IMAGING

those impacts triggered by exploration and those caused by other sources.

Secondly, the potential to regularly acquire new imagery datasets allows the detection of changes, which have occurred due to the operation of a site. By utilising the frequent revisit times and prompt delivery of processed datasets from the satellite constellation, any surface impact such as an oil spill can be identified and responded to rapidly.

Mapping offshore oil seeps from space Over the last 20 years Airbus Defence and Space has developed a continually updated worldwide database of offshore natural oil slicks (Global Seeps) based on the interpretation of satellite radar data. This database allows the presence of a working hydrocarbon system to be established, and helps target surveys such as seismic acquisition, potentially reducing the level of vessel activity. Areas covered in and around the Arctic region include the Barents, Kara, Bering and Chukchi Seas, offshore Greenland including Baffin Bay and Newfoundland and Labrador.

When exploration is initiated in a frontier area it is important to understand the location and extent of natural oil seeps in order to be able to rapidly differentiate any spill related to exploration and production, by establishing baseline oil presence on the sea surface.

Safer, more effective ice charting With the use of the TerraSAR-X satellite, Airbus Defence and Space has been involved with sea ice charting in Arctic waters to reduce the risk of infrastructure damage during drilling activities and to production facilities.

In a recent project, the requirement was to provide near-real-time delivery of satellite imagery (down to 15 minutes of acquisition) in order to ensure up-todate intelligence in an area with quickly changing sea ice conditions.

Space-borne remote sensing allows ice charting and the ability to classify information on different ice types while documenting temporal or time-related change. Increasingly, semi-automatic approaches are being employed to allow a rapid detection of icebergs in order to assure the safe operation of offshore production installations. From space-borne sensors ice can be detected in various physical states but depending on the target and the application, a range of acquisition parameters need to be

considered in order to achieve the required derived product. Information on sea ice topography is also important in order to determine navigation constraints for vessels operating in the Arctic Sea. Furthermore, ice ridging is a risk for infrastructure located in the arctic regions (e.g. oil platforms and pipelines). The determination of ice ridges using cloud and light independent radar data has been demonstrated and under certain circumstances stereo photogrammetric processing of optical data can be considered.

The challenges of onshore Arctic development Any onshore development in the Arctic including facilities, pipelines and roads or other related infrastructure requires considered planning to minimise potential environmental impacts during construction and operation.

Both optical and radar imagery, together with derived elevation models, can contribute to this planning process by developing an understanding of surface and terrain conditions.

Following construction the partial thawing of permafrost can result in ice beneath the ground surface becoming unstable, resulting in cavities and surface subsidence. Any infrastructure mounted on this surface can be affected by this subsidence. It’s possible to detect these effects at an early stage, enabling remediation planning, by the utilisation of radar and its capability to identify subsidence and tilting of infrastructure with a millimetric precision using interferometry, based on repeat coverage over the area of interest. The remote nature of the region means that satellite monitoring approaches can make a significant contribution.

Environmental intelligence The potential for oil spills in the Arctic is of great concern, due to the sensitive nature of the environment and complications of spill clean-up for areas with sea ice. However in the event of a spill, oil can be readily detected using radar satellite imagery due to the dampening effect that oil has on sea surface wave amplitude. Radar based monitoring of offshore oil production facilities for occurrence of oil spills is common practice and this approach can be applied to the Arctic environment. Nevertheless, some difficulties can be expected for the determination of oil spills if there is ice present around the infrastructure to be

monitored. Several studies are currently ongoing in order to assess these difficulties and to develop appropriate technologies to overcome them.

Remote support throughout the project’s lifecycle During the decommissioning phases of an onshore project, satellite data can assist in establishing areas requiring remediation and documenting remediation over time with regular image acquisition.

In order to minimise the environmental impact of oil and gas exploration in the Arctic, the application of the latest technology is required throughout the workflow from exploration and development to production and decommissioning. Satellite imagery and associated derived products and services have a contribution to make in supporting planning, operational and incident response applications.

Picturing glaciers With a SPOT 6 mosaic (composite image), Airbus Defence and Space supported the first of the IceLegacy expeditions, a journey to highlight the importance of glaciers to the world. The first outing took the explorers to the main glacier of Spitsbergen Island in early August 2014.

Explorers Børge Ousland from Norway and Frenchman Vincent Colliard crossed the 180km of the larger glacier on the Norwegian island of Spitsbergen on skis.

On the www.icelegacy.com website, web users monitored the progress of the explorers. Texts and photos about each stage of the expedition were accessible from the SPOT 6 mosaic placed on a geo-referenced background. Airbus Defence and Space supplied this mosaic, consisting of six SPOT 6 images acquired in the winter of 2013.

The climb of the highest glacier in the Arctic began in August 2014 in the north of Spitsbergen Island. On the way, the two adventurers scaled the 1,713m Mount Newton, the highest mountain in the Svalbard archipelago. They left the glacier after covering 180km on skis in just eight days.

The goal of the IceLegacy project conceived by the two explorers is to promote efforts to combat glacier retreat.

Their aim is to cross the world’s 20 largest glaciers on skis. This epic 10-year journey will take them from Russia to Alaska and from Patagonia to Pakistan.

www.frontierenergy.info SUMMER 2015 27

INSIGHT

Reykjavik: Iceland's main urban hub and capital

The study is endorsed by leading lights such as the Dalai Lama and the Archbishop Desmond Tutu

THE MOST PEACEFUL PLACE ON EARTH Despite talk of heightened geopolitical tensions in the area, the polar region - for now, at least - remains the most peaceful place on earth

Scores and rankings from selected polar states Rank

Country

Score

1

Iceland

1,148

6

Finland

1,277

7

Canada

1,287

13

Sweden

1,360

17

Norway

1,393

94

USA

2,038

152

Russia

2,954

Source: Institute of Economics and Peace

28 SUMMER 2015 www.frontierenergy.info

10 list of the so-called 'peace' list.

The study comes from the Institute of Economics and Peace and is endorsed by leading lights such as the Dalai Lama and the Archbishop Desmond Tutu.

The index comprises 23 qualitative and quantitative indicators that gauge the level of peace in 162 countries around the world.

The indicators can be grouped into three broad themes: the level of safety and security in a society, the number of international and domestic conflicts and the degree of militarisation.

In continental terms, Europe is the most peaceful geographical region in the world, securing all of the top three positions in the GPI (Iceland, Denmark and Austria). Its peacefulness has improved every year for the past four years, the study notes.

Other Arctic states, Norway and Sweden, also made it into the list’s top 20.

The region’s bigger powers, the USA and Russia, fared less well, however. Both have been embroiled in international disputes in the past year, with very high military spending, and both face challenging safety and security issues back home.

The USA and Russia found themselves in the bottom half of the peace index.

And, at the wrong end of the spectrum, were war-torn states across the Middle East, with Iraq, Afghanistan and Syria all languishing at the bottom of the pile.

The Middle East and North Africa was flagged as the world’s least peaceful region.

Iceland: the most peaceful country in the world Three things you didn’t know about Iceland • Iceland is the second largest island in Europe, following Great Britain, and the 18th largest island in the world. But it is a very young country with old traditions. Iceland is the youngest landmass in Europe with the continent's oldest parliament, formed in 930 AD. • Iceland was the last country to be settled in Europe, when emigrants from Scandinavia and the British Isles first came to live on the island in the ninth and tenth century. It remains the most sparsely populated country in the continent with less than three inhabitants per square kilometre.

• The colours of the national flag (blue with a red cross outlined in white) are symbolic: Red is for the volcanic fires, white recalls the snow and glaciers, and blue is for the mountains in the distance.

Photo: Shutterstock

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he quiet, the solitude and the vast, untouched emptiness: the Arctic's unique natural beauty and wonder has long fascinated outsiders, drawing explorers and adventurers from around the world over many years.

Although its proximity from the major population centres of Europe, Asia or North America can be measured in the thousands of miles, it feels more like a million miles away.

No wonder this strange icy land is now capturing the imaginations of tourists as well, who pay top dollar for luxury cruise voyages to soak up some the magical polar experience.

And, despite talk of the world powers raising the stakes in the region, it's fair to say that this remains the most peaceful of places on earth.

Indeed, many of the Arctic states that surround the polar cap have been recognised themselves as beacons for peace.

Iceland was recently named as the world's most peaceful country, according to a study, the Global Peace Index (GPI) 2015.

The small island nation, which maintained its place at the top of the poll for a second year, scored highly because of its high safety record, low military spending and limited record of conflict, both at home or overseas.

Though it's certainly not the only Arctic nation to make it into the GPI 2015 rankings.

It heads a list in which the top 10 is heavily populated by Arctic states, with Denmark voted as the second most peaceful place in the world. Finland and Canada also made it into the top

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.

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