Frontier Energy

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

www.frontierenergy.info AUTUMN 2012

ICE SCIENCE

Princess Elisabeth Antarctica

TeamWork

Oil Spill Recovery JIP

GustoMSC

The New Ice Age

SHELL in Alaska

Investment in safety

Carving an ICY ROUTE Sovcomflot’s Arctic Future

Alain Hubert, Polar Explorer

NORTHERN PERIPHERY • CLASSIFICATION • TECHNOLOGY

S T N G

E TIN V E IS L

With over 1,200 applications for cold climate projects, our experience makes the difference.

Contact us to find out more. protectivecoatings@akzonobel.com www.international-pc.com

CONTENTS

17

28

04

14

Autumn 2012 OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

www.frontierenergy.info AUTUMN 2012

ICE SCIENCE

Princess Elisabeth Antarctica

TeamWork Oil Spill Recovery JIP

GustoMSC

The New Ice Age

SHELL in Alaska

Investment in safety

Carving an ICY ROUTE Sovcomflot’s Arctic Future

Alain Hubert, Polar Explorer

NORTHERN PERIPHERY • CLASSIFICATION • TECHNOLOGY

TS EN ING EVLIST

Cover Photos: International Polar Foundation

On the cover December is summer time in Antarctica, and this season sees the first scientists arriving at the Princess Elisabeth Antarctica station. The base is run by the International Polar Foundation, headed

by Belgian explorer Alain Hubert (inset)

IN THIS ISSUE Features 06 ALASKA Energy supermajor Royal Dutch Shell has spent around $5bn in planning and undertaking an exploratory drilling programme in the Beaufort and Chukchi seas. Here the company explains why

10 ARCTIC FUTURES 2012 This event gathered dozens of scientists, engineers, community leaders, oilmen, politicians and international civil servants to Brussels, Belgium for a meeting organised by the locally-based International Polar Foundation.

Here we report on some key issues raised

14 ARCTIC DRILLSHIPS Dutch offshore design and engineering group GustsoMSC is developing a range of Arcticready drillships. Han Tiebout describes the company’s thinking and work behind the vessels

16 STANDARDS US-based classification society, the American Bureau of Shipping (ABS) is developing and publishing a series of standards and guidelines for Arctic projects, both onshore and offshore

17 SHIPPING Sovcomflot, Russia’s largest shipping company and a major energy transporter, has revised its course towards specialised energy shipping services and the offshore market.

Technical director Alexander Sokolov talks about the future of Russia’s shipping industry and the company’s ambitions to carve a niche in Arctic energy shipping

20 ANTARCTICA An International Polar Foundation (IPF) team led by Belgian explorer and campaigner Alain Hubert arrived on November 12, 2012 at Princess Elisabeth Antarctica - the world’s first zero emission polar station. What will they be doing there?

22 OIL SPILL JIP A major new industry JIP is researching into new ways of tackling the very real fear of an Arctic oil spill.

Topics include the efficacy of chemical dispersants, oil spill trajectory modelling and the impacts of controlled burning

Regulars 04 NEWS Ireland’s Tullow Oil has taken as a stake in Maersk-operated Tooq block offshore Greenland. The area is described as ‘unexplored and highly prospective’; Canada’s Rutter Inc has bought a Germany-based company giving it access to European markets and R&D knowhow; Power and automation group ABB has clinched a contract for propulsion systems for a Russian icebreaker; Iceland politician Magnús Jóhannesson has taken on a major role at the Arctic Council

24 EVENTS Frontier Energy’s comprehensive events listing highlights the sectors key upstream, shipping, scientific and research conferences to help you plan your calendar with events such as this December’s ATC 2012 in Houston

27 CULTURE The Northern Periphery Programme is supported by the European Union and builds co-operation amongst the countries and regions sited in Europe’s northern most locations

28 INSIGHT Researchers at the US-based MIT university have developed a new method for combining models and observations to simulate the seasonal extent of Arctic sea ice and the ocean circulation beneath the ice www.frontierenergy.info AUTUMN 2012 01

EDITOR’S LETTER

FRAM* W

“Calls are growing louder and more urgent for legislation to be enacted to protect the Arctic”

www.frontierenergy.info Editor Bruce McMichael editor@frontierenergy.info Publisher Stephen Habermel publisher@frontierenergy.info Design & Layout In The Shed Ltd www.in-theshed.co.uk © 2012 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 Eagle House, 25 Severn Street, Welshpool, Powys SY21 7AD Registered in England & Wales.

Company number 5850675.

elcome to your latest edition of Frontier Energy magazine.

While the world faces many challenges, one of the greatest is how to meet our increasing demand for energy while tackling global climate change in a responsible way.

In the 2012 World Energy Outlook the International Energy Agency (IEA) forecasts that global energy demand will increase by more than a third by 2035. A significant 60% of this growth will occur in China, India and the Middle East, while the more advanced economies of the OECD countries are expected to experience only limited growth.

The Arctic and its peoples face many challenges including offshore hydrocarbon exploration and development; overlapping maritime claims, wide-margin continental shelves, the dumping of nuclear reactors, indigenous whaling, and a variety of shipping issues, including contested shipping routes, the use of flags of convenience, vessel-sourced pollution, and ship-based tourism. That’s quite a list.

Exploration efforts are ramping up offshore Arctic and business deals of global importance being signed; witness the interest in the share dealings and swaps between BP’s and Russia’s Rosneft that played out this summer. BP says the deal places the group in a strong position to develop resources in the frozen lands of Russia’s Arctic.

Climatologists, environmentalists and adventurers are all declaring an interest in the Arctic (and Antarctica). The opening up of the zero-emissions Princess Elisabeth Antarctica base in November and the high number of delegates that are attending the Frontier Energy-supported Arctic Technology Conference in Houston, Texas in December are positive signs of how development is occurring, and how all sides of the industry are striving to preserve the wonderful and precious environments to the north and south of where we live and work.

Calls are growing louder and more urgent for legislation to be enacted to protect the Arctic, while allowing for sustainable development. The International Maritime Organisation’s Polar Code is slowly progressing through the corridors of the London-based UN-agency. Ships operating in the Arctic and Antarctic environments are exposed to a number of unique risks. Poor weather conditions and the relative lack of good charts, communication systems and other navigational aids pose challenges for mariners.

IMO is currently developing a draft International code of safety for ships operating in polar waters (Polar Code), which will cover the full range of design, construction, equipment, operational, training, search and rescue and environmental protection matters relevant to ships operating in the inhospitable waters surrounding the two poles. Sadly, there is no date yet for its implementation.

It is only when the Polar Code is enacted and the USA becomes a signatory of the UN Convention on the Law of the Sea (UNCLOS) the, albeit unfounded, reputation as the Arctic being a place of legal chaos and lawlessness will be laid to rest. The US’ delay in signing up to UNCLOS, is in part delayed by arguments that the treaty’s original signatories did not envision perennial sea ice turning into open water. For this reason (among others), argues the US the provisions of UNCLOS (written in 1982) do not fully address the dilemmas presented by the special case of the Arctic Ocean.

So, while the Arctic region stands at the cusp of tremendous economic development, enabled by offshore and onshore energy and mineral extraction and ecotourism, a licence to operate will only be granted by governments and their peoples if the environment is protected in a correct and safe manner, and local communities thrive.

Bruce McMichael, 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 AUTUMN 2012 03

NEWS

Tullow takes Greenland stake

IN NUMBERS

60º

Irish independent oil company Tullow Oil has got the green light from Naalakkersuisut, the government of Greenland, to take a non-operated 40% equity stake in the Maersk Oil-operated Block 9 (Tooq licence) in Baffin Bay, north-western Greenland. Maersk Oil will continue to act as operator of the licence with a 47.5% interest and Nunaoil, Greenland’s state oil company, will hold a 12.5% interest.

The Tooq licence covers 11,802 square kilometres and the work programme for 2012-2014 includes the acquisition and processing of 3D seismic data. To date, around 1,850 sq km of seismic has been acquired, and an Environmental Impact Assessment submitted.

The decision whether or not to enter the next phase and drill an exploration well on the Tooq licence will be made after the seismic evaluation has been completed, said Angus McCoss, exploration director at Tullow. He described the area as “unexplored and highly prospective”.

Latitude, north of which Arctic nations define as being the ‘Arctic’

$164 million

Amount US government spent ON OIL SPILL RESEARCH between 2000 and 2010.

Maybe 10% of which was SPENT ON ARCTIC SPILLS

Gazprom will soon be exporting via the North Sea Route

www.tullowoil.com

ABB’s Azipod propulsion unit

Northern route first for Gazprom The LNG tanker Ob River chartered by Russia’s state energy giant Gazprom has completed the first LNG vessel passage through the Northern Sea Route (NSR). The vessel was operated by operated by Greek shipping company and LNGspecialist Dynagas. Ob River was built in 2007 with 1A ice class notation from Lloyd’s Register and extensive winterisation equipment. The vessel and her crew successfully performed in ice conditions in 2009 – 2011 when chartered by Gazprom Marketing & Trading group for winter operations to export LNG from Sakhalin-2, the first Russian LNG project where OAO Gazprom is the majority shareholder. The vessel has an international crew on board, including Russian officers graduates of the Admiral Makarov State Maritime Academy in St. Petersburg, Russia’s leading maritime education and training centre.

ABB scoops Russian icebreaker contract ABB, the Swiss-headquartered power and automation technology group, has clinched a $35 million contract from the Baltic Shipyard Ltd. to supply propulsion and energy efficient electrical systems for a new icebreaker vessel under construction for Russia’s state shipping company Rosmorport FSUE. “The extreme conditions north of the Arctic Circle demand constant availability and highenergy efficiency from all systems on board,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division.

The 25-megawatt (MW) line dieselelectric is the next-generation multifunctional diesel-electric

icebreaker, says ABB. The navigation area of the icebreaker is the Northern Sea Route, the Arctic seas and estuaries of rivers discharging into the Arctic Ocean.

The vessel’s propulsion system features two Azipod thruster units (power output 2 x 7,5 MW) and one centreline arranged shafting with a fixed pitch propeller generating additional 10MW output.

The icebreaker is able to move either continuously ahead or astern at the speed of 2 knots in compact ice field up to 2m thick with 20 cm of snow cover and temperatures as low as minus 35 deg C. Delivery to Rosmorport is scheduled for 2015.

04 AUTUMN 2012 www.frontierenergy.info

www.abb.com

www.gazprom.com www.dynagas.com

Arctic role for Iceland’s Jóhannesson Magnús Jóhannesson was appointed as the first Director of the Arctic Council’s Secretariat, at a mid-November meeting Senior Arctic Officials in Haparanda, Sweden. The Council’s Secretariat will be run from Tromsø, on the west coast of Norway, in 2013. Mr Jóhannesson, who was selected from a group of 36 candidates from seven out of eight member states of the Arctic Council, is expected to take up his duties next February. The role of the Secretariat, which will be formally opened following the Council’s Ministerial Meeting next spring, is to strengthen the work of the Council and communication on Arctic issues.

Mr Jóhannsson has been Iceland’s secretary general of the Ministry for the Environment since 1992 and was previously the director of the Icelandic Maritime Administration from 1985. www.arctic-council.org

NEWS

100

Days in which the winter road seasons for travel across northern Alaskan tundra have declined from over 200 days in the 1970s

3-13

MILLION

Time in YEARS The Arctic has been covered in THICK ICE

400 – 600 million

Estimated volume of oil (barrels of oil equivalent) in Skrugard and Havis fields in Norwegian sector of the Barents Sea

$1bn 25

Estimated investment by Cairn Energy offshore Greenland to 2011

Life expectancy in years of the zero-emissions, Antarctica-based Princess Elizabeth research station

1977

When the Trans-Alaska Pipeline opened

1,650 billion THE WORLD’S OIL RESERVES IN BARRELS AT THE END OF 2011

Source: U.S. Government Accountability Office, Chatham House, IEA

Foss builds Arctic tugs US-based Foss Maritime is building three Arctic Class tugs, in a longerterm bid to take on large projects in extreme environments.

Construction on the first vessel starts in early 2013 at Foss’ Rainier, Oregon shipyard. The vessels will be Ice classed by American Bureau of Shipping.

“At Foss we innovate,” said Gary Faber, Foss’ President and Chief Operating Officer. “These vessels will be built using the latest advances in technology and equipment. We want to increase efficiency, improve safety and performance, and reduce environmental impact”.

In addition to low-emission Caterpillar engines, the vessels will incorporate several environmentally-focused designs and structural and technological upgrades, including: elimination of ballast tanks, to minimise transporting invasive species; holding tanks for black and gray water to permit operations in no-discharge zones (such as parts of Alaska and California), and hydraulic oil systems compatible with biodegradable oil.

Foss’ Arctic class tug

Canada’s Rutter buys into Europe Canadian technology group Rutter Inc has bought OceanWaveS GmbH of Lüneburg, Germany, a key developer and supplier of radarbased wave and surface current measurement technology.

Rutter’s sigma S6 and OceanWaveS’ WaMoS are used within the industry for picking out ice, oil, small targets, waves, currents and bathymetry from conventional navigational X-band radar. Fraser Edision, chief executive of Rutter says combining OceanWaveS’ wave and current measuring capabilities with Rutter’s sigma S6 Ice Navigator will give the company a competitive edge in a growing offshore and coastal monitoring market.

“As more and more shipping companies look to sail north into ice-affected waters, measuring and monitoring oil, ice or other small targets will become increasingly important. Also, we will gain a technical centre and physical presence closer to our European customers,” said Edison. www.rutter.ca

Arctic research with HAV21

Main Particulars Vessel type Twin screws, ocean tug Built 2013/14 Class ABS Length 130 ft Breadth 41 ft, 44 ft (Incl fenders) Depth 20 ft Tonnage GRT <300 Propeller 126ins diam.

Nozzles & Rudders Reintjes Main engines 2x Caterpillar C9 1x Caterpillar C4.4 Crew 8 (max) www.fossmaritime.com

Marine research in the Arctic and northern areas must be improved, says the strategy committee behind the recently launched integrated strategy for marine research in Norway, HAV21. The Research Council of Norway has served as the secretariat for the strategy committee, which was comprised of 18 members representing research groups, environmental organisations, public agencies and industry from throughout the country.

Norway’s position as a major power in the marine sector and its strategic location extending into the Arctic pose special requirements for what kinds of priorities the country needs to set with regard to its marine

research activities.

“Norway’s oceans provide enormous opportunities when it comes to harvesting nature’s resources. The seafood industry is one of the country’s three most important industrial clusters, together with the offshore industry and the shipping industry. We must continue to build on this,” says Liv Monica Stubholt, chair of the strategy committee and senior vice president for strategy at Norwaybased engineering giant Kvaerner.

WHAT ARE YOUR CUSTOMERS, POTENTIAL CLIENTS AND COMPETITORS DOING? Get YOUR free eNewsletter from Frontier Energy to find out!

SUBSCRIBE at www.frontierenergy.info TO ADVERTISE contact publisher@frontierenergy.com

Benefits • Exclusive news • Events calendar • Targeted audience

www.forskningsradet.no

SHELL & ALASKA

Oil spill response crews from the Nanuq response vessel near Valdez, Alaska

EXPLORING

SAFELY AND RESPONSIBLY It has taken years of science, engagement, regulatory approvals and around $5 billion of investment, but this summer Shell commenced its exploratory drilling programme in the Beaufort and Chukchi seas in the US Arctic, writes Robert Blaauw, Senior Advisor, Global Arctic Theme, Shell International

T

his most recent chapter in Shell’s involvement in Arctic oil and gas exploration began in 2005, when the US Federal Government reopened up the licence areas in Alaska.

However, the company’s history in the region actually dates back to 1918, when Shell began geological surveys in the area. The company installed the original platforms in the Cook Inlet, just south of Anchorage, in 1963. Although no longer owned by Shell, these are still operating today. Shell discovered hydrocarbons in the Beaufort and Chukchi seas in the late 1980s and 90s but the low oil price together with a re-focus on the Gulf of Mexico meant that developing the resources was put on hold.

The need for more oil and gas and the legitimacy of developing Arctic resources is a question that is often asked.

Companies like Shell need to articulate the business case well if resource development is to be accepted by the 06 AUTUMN 2012 www.frontierenergy.info

public at large. According to independent predictions, by 2050 global energy demand will be twice what it is today.

Although renewables will grow, they will still only supply around 30 per cent of that demand, meaning the world will rely on fossil fuels for decades to come.

The legitimacy of developing Arctic resources is a question that is often asked

The trend toward globalisation and the free market has also lifted two billion people out of poverty and into the middle class. However, as the world becomes more prosperous, it is placing ever-greater strains on the supply of energy, water and other resources. The world population is growing but the

supply of critical resources is not. To meet this growing demand, investment in both traditional and renewable energy is required. In order to make up for the decline in conventional oil and gas resources, unconventional resources need to be developed with exploration in new, more challenging locations, such as the Arctic. The 2008 US Geological survey estimated that the region holds around 22% of the world’s yet-to-be discovered global oil and gas resources. If developed responsibly, it could offset the energy gap and maintain energy security for a growing world population.

Indigenous resources Recognizing the need for energy security and developing indigenous resources governments in the Arctic states are opening up offshore areas for exploration and resource development. It is the responsibility of

SHELL & ALASKA

industry, governments, their agencies, the people of the region and other key arctic stakeholders to ensure that this development is carried out in a responsible and sustainable way. Shell is well placed to contribute to that responsible development. It has a good track record in complex and integrated oil and gas projects in difficult locations like Sakhalin-2, where Shell started oil production in 1999. Through Sakhalin, Shell learnt a lot about the challenges in terms of climate, seasonal sea ice cover, the sensitive environment and indigenous peoples. (Sakhalin-2 is one of the world’s largest integrated, export-oriented oil and gas projects, as well as Russia’s first offshore gas project. It is situated in a hostile sub-arctic environment. The project infrastructure includes three offshore platforms, an onshore processing facility, 300 kilometres of offshore pipelines and 1,600 kilometres of onshore pipelines, an oil export facility and a liquefied natural gas (LNG) plant. Shell has a 27.5% stake in the project, and

Russian state oil company Gazprom has 50% holding).

Arctic Challenges

operations demand highly competent people, strict safety procedures, rigorous multi-layered well control and both construction and maintenance systems designed to minimise risks. These multilayers consist of planning, training and preparation to build a strong foundation.

Shell has implemented an improved

• It has long been recognised that the Arctic is one of the most difficult areas of the world to work in. It is a region of tremendous extremes. An extreme environment with extreme resource potential and extreme oversight.

To deal with these extremes, Shell is utilising its technical knowhow and the latest drilling and spill-prevention technologies.

• Safety and oil spill prevention and response receive considerable scrutiny and focus. Safe wells Chartered by Shell, The Noble Discoverer drillship waits in Dutch Harbor, Alaska

Arctic jAck-ups, drillships, semi- submersibles & vessels.

GustoMSC is a leading design and engineering company for all types of mobile offshore units: jackups, semi-submersibles and offshore vessels.

Our business approach is to deliver proprietary designs under license and associated equipment like jacking systems, skidding systems and offshore cranes to the market.

www.Gustomsc.com

GMSC247 ad Frontier Energy 180x120 - Arctic FINAL.indd 1

20-11-12 14:29

SHELL & ALASKA

Getting it right Developing the Arctic has significant challenges, but these can be managed with the right approach to safety and sustainability. A focus on safety and the environment coupled with early and effective stakeholder engagement to gain understanding and trust in communities is paramount.

Resupplying the drill ship Noble Discoverer

08 AUTUMN 2012 www.frontierenergy.info

www.shell.us/Alaska

The conical drill rig Kulluk

Kulluk drillship Built in 1983 and purchased by Royal Dutch Shell in 2005, the Kulluk drillship is specifically designed and constructed for extended season drilling operations in Arctic waters. Its technical upgrade cost the oil supermajor around $292m between 2006 and 2012.

The Kulluk was moored in Dutch Harbor, Alaska from fall 2010 until June 2011, when it was moved to Seattle for upgrades. It was used to drill wells in the Beaufort Sea during 2012. It’s rated to work in weather conditions historically occurring throughout the open water season (July-October).

It was named by a young schoolgirl from Inuvik in 1982 - Kulluk means, “thunder” in the local Inuvialuktun language.

Main Particulars Length and Width:

266 ft (Diameter of main deck)

Draft:

41 ft

Accommodation:

108

Maximum Speed:

N/A

Owner/Operator:

Shell/Noble

Unique, purpose-built conical Arctic Class IV Hull design High-performance 12 point mooring system

Photo: Shell

design and testing regime based on seas have been conducted by learnings from Macondo, including an state and local government enhanced Blowout Preventer design with agencies, industry, environmental two sets of shear rams and a well design to organisations and research facilitate use of an on-site capping system. institutions over more than • Exploratory drilling will take place 100 years. in the summer months when ice receeds Since 2006 the monitoring of offshore. Nevertheless, as was the case marine mammal populations has in Alaska this year, there is always the been a key component of Arctic possibility operations. The that the wind programme has will change enhanced the Oil companies and direction and understanding environmentalists agree that push ice back of marine towards the mammal the Arctic is one of the most operating area. distribution, difficult areas to work in To ensure behavior, effective ice habitat use and management, response to Shell uses state of the art ice monitoring industry activities. It has also led and management systems. Satellite to the development of new and imagery, shipboard marine radar and improved scientific methods. weather monitoring can determine the location, trajectory and concentration of Economic benefits the ice.

Developing Alaska’s offshore oil and • Just as importantly as managing gas resources will have many benefits in the technical risks, the company has Alaska and throughout the US. In 2010, endeavoured to operate in a way that Northern Economics and the Institute for earns the trust and respect of the people Social and Economic Research (ISER) at who may be affected by resource the University of Alaska evaluated the development, to be worthy of the licence economic benefits of developing Alaska’s to operate. A lot has been learnt from OCS resources. They found that an working extensively with communities, average of 54,700 jobs per year would politicians, academics, NGOs, Arctic be sustained for 50 years with peak interest groups and listening to all possible employment during development possibly concerns about drilling in the Arctic. reaching more than 91,000. This would generate a total payroll in the order of The science $145 Billion in Alaska and the US through to 2057. Government revenue is estimated A huge amount of scientific work to be $193 Billion through 2057. has been carried out in the run up to Extending the Operating Life of TAPS drilling in the Beaufort and Chukchi (Trans Alaska Pipeline System) is a seas. Thousands of independent studies further benefit, together with the new on Alaska’s northern coast and nearby pipelines that will be needed to bring offshore oil to TAPS. This will enable the development of satellite oil fields in Northern Alaska, including the National Petroleum Reserve-Alaska (NPR-A).

These are currently “stranded” due to lack of infrastructure.

CO-OPERATION

Rosneft, Statoil work on environment

R

ussia’s Rosneft and Statoil of Norway have signed a major agreement aimed at protecting the Arctic environment. The so-called ‘Declaration on Protection of the Environment and Biodiversity for Oil and Gas Exploration and Development on the Russian Arctic Continental Shelf’ marks a significant move in the two super majors increasingly close relationship in the region.

Acknowledging that the Arctic environment consists of ecosystems with unique features and resources, and as such, require special protective measures, Rosneft initiated the idea of an agreement for the two partners.

Aiming to improve their technology and operational procedures for exploration and development in the Arctic, Rosneft and Statoil reaffirmed their commitment to sustainable development, including minimising the impact of oil and gas activities on indigenous populations and climate change. The partners along with Roskosmos, Russia’s Ministry of Transport and the Civil Defense, Emergency Management and Natural Disasters Response (Emercom) are now considering a research and coordination centre for the project.

The companies will “seek to coordinate activities in order to preserve the biodiversity of the Arctic, including observing the principles and recommendations of the Convention on biological diversity and the standards set by IPIECA, the global oil and gas industry association for environmental and social issues,” said a Statoil spokesman.

The Norwegian company is increasingly turning its attention to the exploration and production in the north and is stepping up its Arctic activities and will drill nine wells during a non-stop 2013 Norwegian Barents Sea exploration campaign. The company plans to meet development challenges here by tripling its Arctic technology research budget from NOK 80 million ($14.5m) in 2012, to NOK 250 million (2013). The company’s exploration experience in the Barents Sea is already extensive. Of the 94 exploration wells drilled in the Norwegian Barents Sea so far, Statoil has been involved in 89.

Igor Sechin, president of Rosneft, said: “Environmental protection issues are on top of our agenda, especially

when planning the development of the Russian Arctic. We intend to sign this Declaration with all our partners before we launch any substantial activity in the Arctic to make sure everyone is governed by the same principles.”

Earlier this year Statoil and Rosneft joined forces to bid in Norway’s 22nd Licensing Round that sees 86 blocks or parts of blocks put up for auction including 14 in the Norwegian Sea and 72 in the Barents Sea. The application deadline is 4 December 2012, with new production licences being awarded before summer 2013.

Speaking at the time, Statoil chief executive Helge Lund, said: “The partnership between Rosneft and Statoil

is an opportunity to give additional substance to the ambitions of both Norway and Russia to strengthen energy cooperation in the High North following last year’s ratification of the agreement on delimitation of the continental shelf and economic zones in the Barents Sea”.

A further co-operation agreement between the two companies was signed in May, clearing the way to develop four offshore Russia licence including Perseevsky in the Barents Sea and Kashevarovsky, Lisyansky and Magadan 1 in the Sea of Okhotsk. www.statoil.com www.rosneft.com www.ipieca.org

ARCTIC FUTURES 2012

Arctic Futures 2012 in session

Climate dominates

ARCTIC TALKS T

he International Polar Foundation is led by charismatic polar explorer Alain Hubert, who speaking at the group’s annual meeting Arctic Futures, warned that “the interests of individuals” was currently “holding back” progress in tackling climate change,” and the delay is directly affecting the Polar regions. Arctic Futures brings together oilmen, environmentalists, shipping executives, community leaders and scientists to discuss what is happening in the Arctic.

Lately, both the Environment Committee in the European Parliament and the Environment Audit Committee in the UK Parliament have issued reports calling for a ban on Arctic offshore oil and gas activities. These calls have been echoed by environmental group Greenpeace in its plea for a halt in Arctic drilling. The French oil multinational Total has also gone public and expressed concern about oil drilling in the Arctic, although some analysts point out the 10 AUTUMN 2012 www.frontierenergy.info

Total currently is currently focussed solely on gas projects in the region.

Ice melt fears This year’s Arctic Futures event saw climate changes and fears of the impact of ice melt are having on local populations and sea levels.

“The EU is doing quite a lot but more needs to be done to push what I would call the energy revolution,” he said.

The EU itself is an Arctic actor by virtue of three Arctic states, Denmark, Finland and Sweden “Economically, we cannot continue to rely on fossil fuels but trying to convince some member states of this is another thing altogether. What we need to do is

combine individual and collective interests to protect the eco-system of the arctic.”

Jens Boye, of the Royal Arctic shipping line that connects Greenland with Denmark and north America, said local knowledge of environmental conditions was vital for captains and harbour pilots working in ice-affected regions, as ‘they might have to navigate through various different thicknesses of ice and the speed in which harbours can become ice bound is frightening”. He also called for the introduction of the Polar Code by the International Maritime Organisation, a UN-agency, which would regulate the marine industry operating in Arctic and Antarctic waters. “We need a proper focus on hydrographical operations and on Search and Rescue (SAR) capabilities of Arctic countries,” he said.

There is already enhanced oil and mineral exploration marine traffic in the region, particularly around Greenland and this is compounded by rapidly increasing numbers of cruise ships that

Photo: International Polar Foundation - Arnaud Ghys

Arctic stakeholders, including EU and foreign policymakers, scientists, industry representatives, indigenous peoples and academics gathered this October in Brussels, the heart of the European Union, for the annual Arctic Futures Symposium organised by the International Polar Foundation

ARCTIC FUTURES 2012

are sailing into ice-affected waters.

He warned that the lack of medical infrastructure and a highly restricted number of hospital beds on Greenland would have serious repercussions in the event of an accident offshore.

Meanwhile, Konrad Steffen, director of the Swiss Federal Research Institute and famed climatologist, said that 2012 had been an “extreme” year for global warming in the Arctic. “The acceleration of it has exceeded all expectations. It is quite scary.”

Arctic shipping is due for ‘a big comeback’ He acknowledged the role of the EU and a number of member states in tackling climate change. Germany, he said, should be recognised for its efforts in producing ‘green-generated’ electricity had proved a model for other EU countries.

The European Union has a stake in what happens in the Arctic, says Maria Damanaki, the European Commissioner for Maritime Affairs and Fisheries, who set out the case for more cooperation

between the EU and Arctic states.

The EU itself is “an Arctic actor by virtue of three Arctic states, Denmark, Finland and Sweden; four, if Iceland accedes to the EU”.

The EU stands ready to aid the region’s sustainable development: supporting Arctic research, boosting economic development, combating global warming and developing greener technologies, while collaborating in international bodies to set high environmental and safety standards for the Arctic,” she added.

Konrad Steffen, climatologist and explorer

Economic development The EU is also a key investor in the Arctic’s economic development, she said.

“In the last five years alone we have delivered over Euros1.1 billion in programmes stretching from Greenland to the Urals,” she said.

Offshore drilling in the Arctic now becomes a viable option for big oil companies, she said, because “though we may be greening the global economy, oil

and gas remain vital. Arctic shipping is also due for “a big comeback.”

Tromsø, Reykjavik, Murmansk and Nuuk along with other similarly remote Arctic cities and towns will in time position themselves on the nascent transport grids connecting them to Europe, Asia or the Americas and will have the chance to become ‘central trading hubs, Commissioner Damanaki said. www.polarfoundation.org

Perlast G90LT ad 3 Aug 2012_Layout 1 15/08/2012 16:16 Page 1

Advanced sealing solutions for sub-zero temperatures Discover more at: www prepol.com/ice

NEW Exceptional perfluoroelastomers for extreme low temperature sealing applications Perlast® ICE G90LT offers a unique combination of excellent chemical resistance, explosive decompression resistance and low temperature capability down to -46°C. Perlast® ICE G90LT is the latest new material grade in the revolutionary Perlast® ICE range of high performance perfluoroelastomers (FFKM), developed for use in equipment stored or operated at sub-zero temperatures.

Key Attributes Operating temperature range -46°C to +240°C Explosive decompression (ED) resistant Tested to NORSOK M710 standard Exceptional resistance to a broad range of oilfield media Suitable for use in API 6A & 6D wellhead equipment and valves Available as fully moulded O-rings and custom components

Head Office: +44 1254 295400 Aberdeen: +44 1224 877844 Houston: +1 713 482 0123 Email: prepol.sales@idexcorp.com

ANALYTICAL TOOLS

Strudel scour and ice gouging

Floating ice is a constant hazard to shipping

Driven by increasing demand for oil and gas (O&G) and by the great promise of the amount of undiscovered hydrocarbons assessed by the USGS to be located in the Arctic, mostly offshore, a new wave of interest in the region has started with an emphasis on offshore fields, write Ayman Eltaher, Ph.D., P.E., C.Eng.; Aiman Al-showaiter, M.Sc. P.E., and Paul Jukes, Ph.D., C.Eng. of MCS Kenny, Inc., Houston, Texas, USA

F

or oil and gas exploration, the Arctic may be viewed as a region with extremely low winter temperatures, areas of permafrost and/ or covered with different types of ice, an ocean with significant depth, and, as importantly, an extremely sensitive ecosystem. The onshore Arctic includes environments as diverse as the northern parts of Canada and Alaska of the US, Scandinavia and Siberia of Russia.

Offshore Arctic also comprises similar diversity, including the Beaufort Sea, the Canadian Arctic Islands, the Barents Sea, and the Russian Arctic. Exploration of these different areas involves different challenges. Challenges that meet the industry in the Arctic can broadly be divided into operational and analysis/ design-related, as discussed in the following sections. In the following sections, focus will be on only analysis and design issues and state-of-the-art analytical tools to address them.

Analysis/design challenges Designing for Arctic oil and gas projects frequently requires considering conditions that are not typically relevant to other areas. These conditions unique to arctic and semi-arctic fields include ice loading on marine and subsea structures and vessels; interaction between buried structures or pipelines and the permafrost (e.g., permafrost thawing and frost heave); ice-gouging, and strudel scour.

A new challenge that emerged in the last few years is the uncertainty in the arctic environmental loads due to global warming and melting of the Arctic.

12 AUTUMN 2012 www.frontierenergy.info

Ice loading Ice conditions depend greatly on the geographical location, season and ice feature type, besides other factors. Data on ice conditions may be available from national and industry sources such as the Canadian Ice Service (CIS) and the National Ice Center (NIC) in the United States. Methods of modeling ice loading on structures may be divided into two main categories, namely models that describe macroscopically ice loading on specific structure types and constitutive models that can be implemented in a discretization scheme such as finite elements.

Global ice This approach has been followed for a number of structures, such as platforms, lighthouses, columns/supports and ships.

Currently available codes that concern ice loading include API RP-2N, IEC 61400-3, and the most recent ISO/DIS 19906. A code equation that estimates ice loading is usually a simple function of the structure width, ice pile height and an index related to the strength of ice.

The ISO/DIS and IEC codes recommend more sophisticated functions as well as including dynamic considerations.

Ice material A number of scientists and engineers have attempted fitting ice behavior into models such as elastic, plastic, viscous and “Damage” models, or combinations thereof, with different levels of success.

Linear elasticity is useful only in modeling ice pre-failure behavior, and

much of the research work that adopts elastic models for ice is based on the simpler, isotropic and better known properties of freshwater granular ice.

Multiyear ice and icebergs (from glaciers) may also be modeled as statistically isotropic as a result of its random microstructure and very low bulk salinity.

Otherwise, it has been observed that ice repose to loading is sensitive to the rate at which the load is applied. For low strain rates, the behavior is pure creep and ice behaves similarly under tensile and compressive loading. As strain rate is increased further, the failure mode changes to brittle fracture behavior.

This led to the adoption of visco-elastic modeling of ice loading The concept of “damage” was introduced to account for the presence of micro-cracks and voids that permanently affect the material behavior through modification of properties. Much of the early work in damage mechanics was based on a damage factor that is equal to the ratio of the area of voids to the total area. More recent efforts developed a continuum model for nonlinear visco-elastic materials based on generalized J-Integral theory.

Cyclic considerations Field observation has indicated that a key feature of ice loading is its high-frequency cyclical nature. This characteristic of ice loading has been of special concern and an obstacle towards adopting specific types of structures (e.g., fixed jackets) for the Arctic, as it can cause serious strength problems and fatigue damage to such structures. ISO/DIS 19906 proposes dynamic ice loading be computed by a simplified forcing function represented by a sawtooth type time series.

Ground ice-structure interaction Frozen (or freezing) ground interacts with structures that it supports in two main conditions, namely permafrost thawing and frost heave. Current

ANALYTICAL TOOLS

standards provide little guidance as to how to incorporate these conditions in the design of structures and pipelines.

Finer soils (clay and silt) are considered more susceptible to these conditions.

Permafrost thawing Permafrost has been identified as a significant issue for pipeline design because of the subsidence of the ice-rich permafrost after thawing by the heat input from pipelines. Permafrost thawing reduces the load carrying capacity of the soil, and the soil may actually become a burden on the pipeline within the thawed area. Earlier adopted analysis procedures comprised the following three decoupled steps: a 2D thermal analysis of the permafrost, with the pipeline as a source for heat; a 1D soil settlement analysis to estimate the differential settlement along the pipeline; and a structural model of the pipeline with the soils represented as springs, to assess the pipeline stresses and strain under the differential thaw settlement. The method was simple yet quite conservative and requires a fair amount of engineering intervention. Recent developments of the procedure have combined the 3-step analysis into a 3D coupled model. With this approach, the inaccuracy of the soil spring representation was alleviated, and the conservatism was reduced.

Frost heave If a pipeline is operating at sub-freezing temperatures, ice lenses may form and expand around it, causing differential heave and possibly overstress of the pipeline. A number of theories exist that try to explain and predict the frost heave phenomenon, including the ‘Premelted Film’, the ‘Segregation Potential’ and the ‘Porosity Rate Function’ theories. Some designers prefer using scale model testing to derive heave parameters. After assessing expected heave through analytical or scale model testing, structural modeling (with Winkler springs representing the soil) or 3D-continuum modeling of the pipeline is typically used in the design of pipelines against differential frost heave. Frost Heave Assessment using FEA [MCS Kenny, 2012].

Ice-gouging Ice-gouging is a natural phenomenon whereby an ice mass is driven by wind and current until it reaches shallower

waters where its keel ploughs through the seabed. This implies that installing subsea structures or pipelines on the seabed may expose them to the risk of direct contact with the ice masses, with little chance of surviving such event.

Ice-gouging involves a number of complex interactions; namely between the aero- and hydro-dynamic forces, the ice mass, the seabed and possibly existing subsea structures/pipelines. A number of analytical models have been proposed and used over the years. Some researchers have highlighted the importance of sub-gouge deformation and proposed an analytical representation thereto.

The practice has been that the pipeline is modeled using pipe/beam elements coupled with discrete (Winkler) springs that represent the soil. However, many researchers agree that 3D continuum modeling of ice-gouging using CEL modeling of Abaqus and ALE modeling of LS-Dyna is the most promising of the numerical techniques currently available for modeling ice-gouging. A recent JIP in the Industry aimed at identifying the state of the art capabilities of 3D continuum modeling of ice-gouging.

and pipeline free spanning and (upheaval or lateral) buckling. Strudel scour seems to be of minor risk level based on interpretation of limited available data.

Conclusion Development of Arctic oil and gas fields requires taking into account unique operational and analytical aspects.

Analysis of subsea structures and pipelines would likely require consideration of one or more of the following loads and/ or conditions unique to arctic fields: ice loading, permafrost thawing, frost heave, ice gouging, and strudel scour.

New numerical methods have been introduced and used in modeling the above conditions, with varying levels of success. Further work is needed to raise the accuracy and confidence in these methods, which will help developing economical designs for the exploration of the challenging Arctic region. www.mcskenny.com

Strudel scour Strudel scour is a localized, seasonal phenomenon that occurs in few areas, such as the Beaufort Sea, where the melting fresh water in rivers and streams flows over the surface of frozen shore-fast ice and rushes through the ice cracks with velocity and volume that can scour the seabed.

Scouring the seabed may expose buried pipelines, which in turn leads to problems regarding keeping the hydrocarbon temperature, exposing the pipeline to ice keels,

Frontier Energy is the world’s first publication dedicated to international oil & gas and shipping sectors working in the Arctic and other harsh, ice environments.

Quarterly magazine – an unique source of information, read by industry decision makers worldwide – available in print and online eNewsletter – breaking news delivered weekly to your desk – free to subscribe Website – the latest news, statistics and an extensive project database

www.frontierenergy.info

ARCTIC DRILLSHIPS

Artistâ&#x20AC;&#x2122;s impression of the NanuQ 5000

THE NEW

Offshore construction work using a heavy lift crane

Han Tiebout, manager Product Development, at GustoMSC is also vice-chairman for ATC 2012, held in Houston, Texas. (See page 26). At the event, Han will co-chair the Exploration and Production stream of papers. www.arctictechnologyconference.org

14 AUTUMN 2012 www.frontierenergy.info

The Arctic is one of the last frontiers in offshore oil and gas development.

The challenges faced by the industry in this area are enormous: extreme low temperatures, harsh environmental conditions, a vulnerable eco-system, high ice loads and some complex political challenges to name but a few all lie ahead. Han Tiebout, manager, product development at GustoMSC, the Netherlands-headquartered offshore design and engineering company, describes how the company is developing a programme for Arctic designs encompassing in-house R&D, participation in various joint industry projects and client liaison

T

he oil, gas and shipping industries are renewing interest in the Arctic region. The first offshore exploration of the Arctic started as early as in the 1960s, while todayâ&#x20AC;&#x2122;s field developments have been comparatively small; the need to replace reserves is resulting in renewed interest.

All Arctic offshore provinces, from the US and Canada (Chukchi and Beaufort Seas), Greenland and Norway to the Russian Arctic (Barents, Kara and Pechora Seas and Yamal) are being studied for further development.

The challenges to be met are significant and range from harsh environmental conditions, severe ice loads, vulnerable ecologies and a lack of infrastructure.

Images: GustoMSC

ICE AGE

ARCTIC DRILLSHIPS

GustoMSC in the Arctic From the early 1960s GustoMSC, then as a shipyard, specialised in designing and building mobile units (vessels, jack-ups and semi-submersibles) for the offshore industry. Legacy projects for the ‘60s and ‘70s were the Seashell jack-up for Shell, the Viking Piper semi-submersible pipelay barge and the Pelican class DP drillships.

Some of those units were designed to operate in harsh environments and cold climates. When Arctic operations were started back then a natural evolution occurred to design and build units specifically for that environment.

Arctic exploration A derivative of the successful Pelican class DP drill ships was the Canmar Explorer III. It drilled in the Chukchi Sea and Beaufort Sea for several operators including Amoco, Chevron, Dome Petroleum, Esso and Shell.

For the U.S.S.R. Ministry of Gas a series of drillships (Valentin Shashin, Viktor Muravlenko and Mkhail Mirchink) and jack-ups (Kolskaya and Sakhalinskaya) were designed and supplied during the 1980s. The units were designed to operate in temperatures up to minus 40° Celsius. The construction utilised special materials that allow safe operation in these challenging environments and weather conditions.

Upon delivery the units were certified by the U.S.S.R. Register of Shipping for yearround operation in northern Russian seas.

More recent experience was demonstrated in the projects executed for the KCA-Deutag owned Orlan platform drilling rig and the Parker rig 262L. Both drilling units are operated by ExxonMobil near and on Sakhalin Island.

As can be seen in the images, quite a bit of weather protection and winterisation has been designed into these units.

The latest Arctic project for the exploration market was for the joint venture between Shell and Frontier Drilling (now part of Noble Drilling), the Bully drillship project. Extensive ice tank studies were performed at HSVA, the Hamburg Ship Model Basin, in Hamburg, Germany as part of the design process.

The vessels were built by a shipyard in Shanghai, China in 2008 and 2009 and outfitting was completed in Singapore by Keppel Shipyards during 2009/2010.

Arctic construction During the 1980s, the U.S.S.R.’s Ministry of Gas ordered a series of crane barges, designed to operate in temperatures up to minus 40° Celsius.

Upon delivery the units were certified by the U.S.S.R. Register of Shipping for yearround operation in Northern Russian seas.

In addition to the above listed projects the company has executed a range of feasibility and design studies for Arctic applications.

GustoMSC developments The experience gained since the early 1970s will be of benefit when new projects for the Arctic offshore areas will need further development.

Within the program, the following Arctic drilling units are being developed: • NanuQ 5000 DP drillship,

suitable for year-round operations in the Arctic in shallow to deep water of 5,000 ft and upwards. With a 15,000 mt or higher variable load, the vessel has a high autonomy when working in remote Arctic areas. The vessel can be either turret moored or dynamically positioned and will be of high ice class, allowing the vessel to operate in and transit through all Arctic areas. The vessel is fully winterized, with all working areas entirely enclosed to protect crew and equipment, with the moonpool protected by the vessel’s hull.

Thorough attention has been given to onboard logistics and mechanical handling inside the enclosed working areas. A full range of environmental protection measures, reducing both emissions and discharges, is being implemented to protect the Arctic environment.

The vessel is intended for operational conditions with ice management.

NanuQ 500 DP Main Particulars Length (bpp)

225.5 metres

Breadth

38 m

Depth at centerline

21.6 m

Drillfloor height (above keel level)

31.2 m

Displacement

95,000 tonnes

Ice class

Polar Class 2

People on Board

200+

Days of autonomy

120

Mooring

Turret, 12-16 point

Dynamic Positioning

Ice-classed azimuthing units

• OCEAN850 Arctic drilling semisubmersible,

This vessel is suitable for drilling operations in up to 5,000 ft water depth with a 9,000 tonnes variable load. The semi-submersible is winterized and provides enclosed work decks inside and on top of the deckbox structure.

Artist’s impression of the arctic jack-up SEA-15000 ICE

A large enclosed moonpool is located in the center of the deckbox to provide good access and working space below the drillfloor. A riser protection dome is connected to the underside of the deckbox, in way of the moonpool in order to protect the riser against ice loads.

Furthermore this unit is equipped with a thruster assisted mooring system for efficient station keeping. The columns and pontoons are reinforced for ice loads and the pontoons are equipped with wave and ice deflectors.

The semi-submersible is intended for operational conditions with ice management.

• Arctic cantilever jack-up SEA 15000 ICE

Exploration drilling in severe ice conditions with a jack-up is feasible in up to 50 m of water depth. The three main structural components of the design are the drilling jack-up, the drilling caisson and the drilling caisson foundation.

The jack-up is a winterized cantilever drilling unit with large diameter, steel circular legs. Unlike the more common lattice structure legs, the circular legs can resist the high local ice load. The hull is designed to resist ice loading during tow, which enables the unit to move to and off location in icy conditions.

The drilling caisson is to protect the drill string from ice load, and it provides an additional barrier against oil spill. A self-installing foundation, similar to the large sized spud-cans used on jack-up legs, supports the caisson on the seabed.

The caisson foundation also protects the subsea shut-off device from damage by ice ridge keels. www.gustoMSC.com www.frontierenergy.info AUTUMN 2012 15

TECHNOLOGY & GUIDELINES

ARCTIC

STANDARDS

T

he Arctic frontier presents the industry with a renewed definition of “challenging” offshore operations. The physical environment is exacting, with variable and demanding ice conditions, remoteness from developed areas, extended darkness and low temperatures. In addition to these physical conditions, there is the challenge of stringent regulatory requirements. As the industry returns to this frontier, there must be a commitment to working within governmental regulations, particularly in the environmental area, while striving to update previous service experience.

It is clear that for the industry to proceed safely into this sensitive region there must be new standards and guidance. There is a critical need for more accurate ice load estimation and for more practical methods for predicting the effects of physical ice management for offshore structures if the industry is to safely and efficiently produce resources from this frontier area.

Ice management For every project that is executed in Arctic conditions, there is a series of events that must be carried out near the installation for safety purposes. This includes ice forecasting and ice detection, and in the event that conditions require it, physical ice management. These conditions are evaluated during the design cycle so the frequency of probable global loads for managed and unmanaged ice can be used to design appropriate strength levels for the structure and mooring system to provide the necessary operation time.

The industry has welcomed the newly issued guidelines on ice management systems as described in ISO 19906:2010.

This standard specifies requirements 16 AUTUMN 2012 www.frontierenergy.info

and provides recommendations and guidance for design, construction, transportation, installation and US-based ABS classed the Kulluk drilling ship, seen here in berth for refitting and upgrades at Vigor Shipyard in Seattle, USA removal of offshore structures in Arctic regions. The their capabilities, and their efficacy in ice objective of the standard is for offshore load reduction. structures in these regions to have an appropriate level of reliability with respect to personnel safety, environmental Ice load prediction protection and asset value. However, The industry also needs guidance on ISO 19906:2010 does not contain how to apply standards such as ISO requirements for operations, maintenance, 19906 in mooring system design practice service-life inspections or repair of related to the system. Understanding these structures except where the design ice loads and uncertainties is critical for strategy imposes specific requirements. fundamental design reliability. The dearth New types of floating systems are of industry experience in Arctic operations being developed for Arctic E&P, and leaves a void that can be filled, at least in the current rules are not comprehensive part, through the development of sound enough to properly guide structural design practice for mooring systems in ice, design or to provide a means for safe long-term operations. These shortcomings including the ice load estimates, design principles, and the safety factor needed for necessitate further R&D that will guide the industry in outlining a way to directly the desired level of reliability, along with large full-scale projects/experiments that calculate the effects of the ice loads on can be used to validate numerical models, these structures and on their mooring analytical methods, and model test results. systems for potential ice interaction ABS has classed a number of installation scenarios that are not explicitly addressed “firsts” in the Arctic and with the help of in the ISO standard. There also has to be industry, continues to work to break the a focus on fulfilling the requirements of ice barrier. the ISO standard in terms of structural resistance and overall system reliability. www.eagle.org There needs to be a standard approach Year Installation Asset Owner using a riskbased framework 1982 Kulluk Beaudril to quantify the effectiveness 1982 Single Steel Drilling Caisson (SSDC) Canmar of physical ice 1984 Molikpaq Beaudril management, for 1985 SSDC Mat Canmar example, determining how many icebreakers 1985 Glomar Beaufort Sea I (CIDS) Global Marine should be available,

Photo: Shell

As E&P operations move into frontier regions, class societies must create guidelines that not only protect the safety of the environment but also the people, offshore units and vessels operating within it, writes James Bond, Shared Technology Director at ABS

SHIP DESIGN

A polar eye view of Arctic ice breaking in action

Sovcomflot plots NORTHERN FUTURE Sovcomflot, Russia’s largest shipping company and a major energy transporter, has revised its course towards specialised energy shipping services and the offshore market. Technical director Alexander Sokolov (pictured left) talks about the future of Russia’s shipping industry and the company’s ambitions to carve a niche in Arctic energy shipping development Q Sovcomflot’s strategy until 2017 envisages, amongst other things, an increased share in the company’s specialized energy shipping services, in particular LNG transportation and shuttle tanker operations. How is it going to affect the newbuilding programme?

A

It appears that all new projects will require building fundamentally new kinds of ships with a higher ice class.

To give an example, the Yamal LNG project for developing the South Tambey field in the Arctic area of the Yamal peninsula is currently underway. We are working on a concept for building new cargo ships to operate in arctic conditions and are analyzing various configuration options for propulsion units. As rudder

propeller units are one of the main propulsion options for icebreakers, (Swiss-based power and automation giant) ABB’s Azipods could play a big part in this.

(Azipod is a ABB-registered brand of podded electric propulsion unit where the variable speed electric motor driving the fixed pitch propeller is in a submerged pod outside the ship hull, and the pod can be rotated around its vertical axis to give the propulsion thrust freely to any direction. Thus the ship does not need rudders, stern transversal thrusters or long shaft-lines inside the ship hull. Azipod propulsion systems were introduced some 20 years ago and is a major propulsion system for ice going tonnage and luxury cruise liners.)

does the new strategy Q How reflect shifting market demands? in the tanker segment and A Crisis in the shipping market in general

does not appear to be ending in the near future, making Sovcomflot seek new opportunities. This is why we are taking on offshore projects and looking into converting our existing tankers into shuttle tankers that could transport oil from international platforms. We have also entered the seismographic research vessel market for the first time. Difficult market conditions are making many companies review their strategies and enter new areas of development. construction of two Q The multifunctional icebreaking

supply vessels by the Arctech Helsinki Shipyard seems to be an important step towards Sovcomflot’s further expansion in upstream services. How did this project start and what is its current status?

2009, Exxon Neftegaz Ltd A Inannounced a tender for a long-term

charter of two icebreaking supply vessels to transport supplies to the Sakhalin-1 platform developing the Arkutun-Dagi

www.frontierenergy.info AUTUMN 2012 17

SHIP DESIGN

Sovcomflot signed an agreement offshore oil field in the Russian Far East. with ConocoPhillips, Samsung Sovcomflot was successful with this Heavy Industries and ABS to install tender, and in December 2010 signed an additional equipment on the vessel agreement with Exxon Neftegaz Limited to create a ‘floating ice laboratory’. to build these vessels at the Arctech This equipment included a system of Helsinki Shipyard in Finland. These two sensors and measuring instruments vessels of 4,000 DWT each are designed that allowed monitoring of ice for extreme arctic conditions and will pressures and loads. After assessing operate in ice of up to 1.7 meters thick. the over torque capability of the ABB Both vessels will have ABB propulsion propulsion system, and electrical we could see that the systems.

Azipod drives had A Russian The voyage of the SCF Baltica to be adjusted to shipbuilding through the Northern Sea match the technical company, specifications.

Vyborg Route was quite remarkable We tried doing Shipyard, is that ourselves constructing the and failed, so we hull elements of called in a group of experts from the new vessels. A keel laying ceremony ABB, ConocoPhillips and the Central was held at the Arctech Shipyard in Marine Research and Design Institute January 2012, marking the start of the to help us. They managed to adjust all construction. Both vessels are scheduled the necessary parameters and we got for delivery in the spring of 2013, but we positive results straight away. After the are hoping to receive them a few months experts measured ice loads, we could ahead of schedule. see that the propulsion system could When icegoing vessels equipped with reach 50% over torque, as stated in Azipod propulsion systems run astern in ice, the propellers mill the underwater part the technical specifications. This has significantly increased the icebreaking of the ridge, cutting a passage through.

The water flow generated by the propeller capability of the vessel. flushes the hull, making it easier for the ship to move through the ridge field.

Did Sovcomflot get any evaluations of Azipod performance from independent What are Sovcomflot’s experts? previous experiences with Azipod in ice conditions?

Experts from the Krylov Shipbuilding Research Institute Oil transportation from the in Saint Petersburg expressed doubts Varandey Terminal to Murmansk regarding Azipod’s performance on and over three years of successful ice thicker than 1.5 meters. One of the operations in the Barents Sea. Arctic main concerns raised by the scientists shuttle tankers of the Vasily Dinkov-type during their theoretical discussions was have already proven their capability for the strength of the nacelles. However, operating in extremely low temperatures. ice model tests of Arctic shuttle Cargo operations took place in tankers, previous operation of Azipod temperatures as low as -32°C. Our Arctic ice breakers and Sovcomflot’s over tankers were able to operate without the three years of successful experience in need for any ice-breaker escort in harsh tanker operations in the Barents Sea ice conditions in the Novaya Zemlya have confirmed that we were right with region, where the drift ice thickness choosing this option. exceeds 1m and pack ice gets as thick as 2.5 meters. So far, the Sovcomflot tankers have transported over 10 million tonnes What have been the key of crude oil from the Varandey Terminal recent Sovcomflot voyages? in harsh ice conditions.

That of SCF Baltica through the Northern Sea Route in August Were there any challenges in 2010 was quite remarkable. This terms of Azipod operations? was the first voyage attempted by an Aframax tanker of more than 100,000 Yes, with our Timofey Guzhenko DWT along this shipping lane. SCF tanker, which transports oil Baltica transported 70,000 tonnes from the Varandey Terminal. In 2009,

Q A

Q A

18 AUTUMN 2012 www.frontierenergy.info

of gas condensate from Murmansk to Ningbo, covering a total distance of 7,000 nautical miles, about 2,500 of which were via the Northern Sea Route. The traditional shipping route to China via the Suez Canal would take about twice as long. The world’s two most powerful nuclear-powered ice-breakers – Rossiya and 50 Let Pobedy – escorted SCF Baltica during this voyage. The main goal of this

Q A

Q A

How Azipod breaks the ice

SHIP DESIGN

voyage was to determine the feasibility for transportation of hydrocarbons from the Barents and Kara Seas to the markets of Southeast Asia along the Northern Sea Route on a regular, economically viable and safe basis. Last year, the 160,000 DWT Suezmax tanker Vladimir Tikhonov completed the same voyage, carrying a cargo of over 120,000 tonnes of gas condensate. This voyage set a new record by accomplishing the Northern Sea Route transit in just seven days and with the average speed of 14 knots.

Q

Images: Sovcomflot/ ABB

Has Sovcomflot moved closer to year-round shipping in Russia’s Arctic waters?

A

Even though it might be a bit early to talk about year-round shipping, our experience with the Northern Sea Route voyages shows the potential for navigation in the Arctic region. All the new offshore projects are linked to oil and gas exploration in the Arctic. This means that in the future we will need not only to

adv_CIMPS-190x135mm-drukklaar.indd 1

supply vessels, but also large tankers that can transport oil and gas from the Arctic region all year round. Even despite global warming, the average Arctic ice thickness is over 3 meters. This would require icebreaker cargo ships that do not exist at the moment. A substantial icebreaker escort could be an alternative solution, but there are not that many icebreakers navigating the Northern Sea Route. development of offshore Q The oil fields in Russia’s Arctic seas lacks investments mainly due to high taxes. How does this impact Sovcomflot? give you an example, our fleet A Toincludes two Arctic shuttle tankers

built by the Admiralty Shipyard for transporting oil from the Prirazlomnoye field, the first commercial offshore oil development in the Arctic. But due to lack of finance, the field development has been continuously delayed. As a result, these vessels have been operating

A Sovcomflot tanker breaking Arctic ice

as storage tankers for over a year now.

As soon as they leave ice, their economic performance falls, and the best way of using them – especially in difficult market conditions – is as storage tankers. One of these vessels has been operating in African waters for quite a while, and the other is still operating in the Black Sea. Not exactly the Arctic!

Source: With thanks to ABB Generations 2012 magazine. ©ABB

11/15/2012 2:08:27 PM

ANTARCTICA

Ice Station An International Polar Foundation (IPF) team led

by Belgian explorer and campaigner Alain Hubert arrived on November 12, 2012 at Princess Elisabeth Antarctica - the world’s first zero emission polar station, writes Bruce McMichael

D

elayed almost one week due to heavy snow at Russia’s Antarctica-sited Novo Air Base, the team’s arrival marks the end of winter, and the start of an intensive four-month scientific research season.

Sited 71°57’S, 23°20’E on the Utsteinen Ridge, in Dronning Maud Land, east Antarctica and at a 1,382m altitude, the Princess Elisabeth Antarctica (PEA) station lies 220 km from the coast and 431 km from the Russian Novolazarevskaya station. Temperatures never rise above -5° C and to endure windy conditions with gust speeds reaching 250 km/h. The station takes advantage of prevailing winds by being oriented to allow dominant winds to blow away snowdrifts.

Mr Hubert created the Brussels-based IPF ten years ago as a focus for polar research. The Antarctica station is the group’s largest project and was conceived during the International Polar Year 20078, and is the world’s first ‘zero emission’ scientific research station in Antarctica.

The station is named after Princess Elisabeth of Belgium, granddaughter of Albert II of Belgium and daughter of Prince Philippe, Duke of Brabant. Wellknown Belgian architect Philippe Samyn was involved in designing the shell and underlying structure.

Research projects for this season include IceCon which aims to gain a better understanding of the rate of the loss of ice – now and in the past - from the Antarctic ice sheet in the Dronning Maud Land area, and the Bellisima project. Bellisima focuses on glaciology and analyses ice shelf and ice sheet movements and dynamics in Antarctica to improve scientific models. The Antarctic ice sheets are the biggest ice mass of our planet and could have a big impact on sea level rise, following melting through climate change.

“Princess Elisabeth Antarctica is up and running, and as soon as we have checked the state of all installations, we will be ready to welcome the many researchers who are due to come here

The zero emissions base, Princess Elisabeth Antarctica

this season,” says Mr Hubert. “We’re proud to be supporting the work of top polar scientists who travel here to carry out important research helping us to understand the nature of the Earth and climate related mechanisms.”

International crew During the 2012-2013 BELARE (Belgian Antarctic Research) season, the station will host some 30 scientists working in the fields of atmospheric science, glaciology, meteorology, geology, and microbiology, from several different countries, including large campaigns from Belgium, Germany and Japan.

Amongst ongoing construction projects at the station is a remodelling of the station’s water treatment system. The station’s membrane bioreactor is a unique prototype installation, based on space technology, which can provide a recycled water supply for up to 30 people.

“Princess Elisabeth Antarctica continues to lead the way in demonstrating that Alain Hubert, at the Princess Elisabeth station

Belgium has a long association with Antarctica, dating back to 1897 – 99 when a state expedition was the first to overwinter deliberately on the continent. It was led by Adrien de Gerlache aboard the vessel La Belgica.

But it was during the International Geophysical Year of 1957-58, that Belgium confirmed its interest in Antarctica, and took part in setting up a geophysical network throughout the continent.

Belgium, along with ten other countries agreed to take part in this scientific exercise and established a research station named Base Roi Baudouin, on a floating ice shelf off the coast of Dronning Maud Land, a virtually unexplored part of Antarctica at the time.

The following year, 1959, Belgium was counted among the 12 countries that negotiated and signed the Antarctic Treaty that sought to demilitarise the continent, promote scientific co-operation and resolves disputes over territorial sovereignty.

Today, the energetic Polar explorer, campaigner and founder of the Brussels-based International Polar Foundation, Alain Hubert is now leading Belgium’s interest in Antarctica. He has been visiting Polar regions since 1983 and his work in the Polar regions is support by the Belgian royal family, the government and Prince Albert of Monaco through his ‘Prince Albert II of Monaco Foundation’. www.polarfoundation.org

20 AUTUMN 2012 www.frontierenergy.info

Photo: International Polar Foundation

Why is Belgium in Antarctica?

ANTARCTICA

ideas that we put in place here in the tough Antarctic environment can influence how we manage energy use and water treatment in our homes, workplaces and cities, and lay the groundwork for a new era of sustainable development,” says Mr Hubert.

Design and materials The station’s skin, insulation, shape and orientation are designed to allow a comfortable working and living ambient temperature to be maintained inside the building with little energy input. Specially designed ventilation and air circulation systems have been incorporated as part of the temperature management system. The heat exchanger and the ventilation systems integrated into the station extract the used air and replace it with fresh air.

The role of these systems is not only to prevent the station from turning into a sauna, but to spread the collected heat over the building, with some areas such as the technical core needing more than others.

Inspired by Mongolian yurts, a woollen felt layer of the Princess Elisabeth wall modules adds to the insulation properties of the panels, boosting the existing water vapour barrier.

Unlike other polar stations, PEA was designed as a structure with integrated internal systems, minimising its floor space while still providing suitable living and working space. The station has to meet with practical and psychological needs, to not only withstand the harsh conditions of the continent, but to take advantage of the environment.

Across the base, systems are integrated and piloted by a programmable logic controller, allowing for very high levels of energy efficiency. Power is sourced from carbon-neutral, renewable technologies for producing electricity using wind and

solar power. Wind power will be used to supply the station with year-round electricity, while solar power will provide both electricity (photovoltaic panels) and hot water (solar thermal) panels during the austral summer.

A bespoke water treatment plant inspired by the space sector, contains two bioreactors and two filtration units will allow the station to treat all its grey and black waters. Most of the recycled water, although fit for human consumption, will find other uses.

The Princess Elisabeth station is an important stage in the understanding the ecology, glaciology and environment of one of the world’s last remaining wildernesses. www.antarcticstation.org www.polarfoundation.org

Inside the Princess Elisabeth Antarctica base If you can’t get to the base in Antarctica itself, but are keen to understand what living and working in such a remote location is all about, find your way to the Tour and Taxis complex in Brussels, Belgium. A new exhibition called ‘Inside the Station’ opens to the public on December 22nd, and runs until late May 2013 and gives a flavour of living and working in the freezer. www.tour-taxis.com

Regional Perspectives

Collect your FREE copy of this unique map at booth 430

Offshore Arctic Oil & Gas Market Report To 2018

Publisher of the Offshore Arctic Oil & Gas Market Report to 2018. A unique forecast covering the complete region.

Infield Systems is an independent energy research and analysis company that is dedicated to the provision of accurate and up-to-date data, market reports, mapping, analysis and forecasts for the offshore oil and gas and associated marine industries. Infield Systems also prepares market due diligence on mergers, acquisitions and transactions for clients in the energy industry. Infield Systems services clients in over 40 countries, including: E&P companies, contractors, manufacturers, government agencies and financial institutions, and is widely acknowledged as the definitive independent source for information, research and analysis on the offshore energy sector.

Infield Systems Limited Suite 502, 1 Alie Street London E1 8DE. UK

T: +44 20 7423 5000 F: +44 20 7423 5050 E: data@infield.com

www.infield.com

• • • • • • • •

Offshore Energy Databases Marine Databases OFFPEX Market Modelling Mapping & GIS Energy Sector Market Reports Bespoke Forecast Reports Supply & Demand Models Market Due Diligence

Arctic Technology Conference 2012 Visit us at Booth - 430

OIL SPILL JIP

Tromsø, launch city of the oil spill JIP

Collaboration is key S

omething very significant is under way for the future of research into oil spill response and the oil and natural gas industry’s relationship with the Arctic. Nine major oil and gas companies are pooling their knowledge, resources and insights as part of a fouryear research programme into oil spill response. They are doing so under the auspices of the International Association of Oil and Gas Producers, the body that represents the industry at the United Nations, the European Union and other global and regional bodies.

The Joint Industry Programme on Oil Spill Response Technology (or JIP) officially launched its research programme this January at the Arctic Frontiers Conference in Tromsø, Norway. The JIP’s steering committee includes representatives from its member companies: BP, Chevron, ConocoPhillips, ENI, ExxonMobil, North Caspian Operating Company (NCOC), Shell, Statoil and Total.

The Arctic region currently supplies around 15% of the world’s oil and natural gas production, most from onshore. And according to the US Geological Survey, the Arctic also holds 13% of the world’s undiscovered petroleum and 30% of its undiscovered natural gas.

Of these resources, an estimated 84% lie offshore. Consequently, assessing the capability and knowledge around oil spill response technology in Arctic conditions, and enhancing those capabilities, is essential.

The JIP’s research will therefore build 22 AUTUMN 2012 www.frontierenergy.info

on a range of path-breaking recent studies into all aspects of oil spill response. The large-scale, comprehensive study by the Norwegian research institute, SINTEF, in 2009 is a noteworthy recent example.

The JIP will be concentrating on nine core research projects. Expert technical working groups have already been set up for each, populated by the top researchers from each of the member companies. The core research themes individually focus on a specific aspect of oil spill response and its applicability to Arctic conditions.

The six themes are: • Gauging the effectiveness of chemical dispersants in Arctic conditions and understanding the fate of dispersed oil under ice • Tabulating the environmental impacts of oil spills and oil spill responses for inclusion in Arctic Net Environmental Benefit Analyses • Assessing the opportunities for building accurate mathematical models to predict the trajectory of an oil spill under ice • Assessing the sub-sea and surface based techniques for tracking the movement of an oil spill in low visibility, under ice • Understanding the specific challenges and opportunities for the mechanical recovery of oil in Arctic conditions • Gauging the factors impacting on the success of controlled burning of spilled oil in ice-infested waters Most of the research groups get under way early next year. All their work will

be laboratory based or, for the relevant research themes, conducted in large and medium-sized wave basins by expert consultants commissioned by the JIP. Each investigation will cover a large range of possible scenarios, taking into account a wide array of factors, from differing oil types, wave types and ice coverage to varying environmental situations. There is also scope for controlled field releases of oil, should it be found that research on one or more of the themes cannot be effectively taken forward without testing in realistic conditions.

Becky Silves, chair of the JIP’s Executive Committee, said: “This is an exciting and ambitious research programme, with significant resources committed to projects involving high levels of collaboration. In that spirit, the JIP members are committed to disseminating the results as widely as possible to informed audiences.

“As an industry, we recognize that oil spill response is not a competitive aspect of our business and we believe that working together gives us access to a wider range of technical expertise and experience, allowing us to be more effective.

“Each working group will publish its results in peer-reviewed journals, and also develop materials for the benefit of wider audiences interested in Arctic oil spill response. These audiences could include NGOs, policymakers and members of the environmental community.” www.arcticresponsetechnology.org

Photo: iStock

Nine oil and gas companies have joined forces to advance Arctic oil spill response research

Tuesday 23rd, Wednesday 24th and Thursday 25th April 2013 Helsinki Congress24th Paasitorni, Finland 25th April 2013 Tuesday 23rd, Wednesday andHelsinki, Thursday Helsinkiwww.arcticshippingforum.com Congress Paasitorni, Helsinki, Finland www.arcticshippingforum.com

Informa Maritime Events is delighted to announce details of the 9th annual Arctic Shipping International Informa Maritime Events is delighted to announce Conference and Seminar 2013 details of the 9th annual Arctic Shipping International Conference and Seminar 2013

For 10% discount quote VIP Code: For 10% discount FKT2468FEAD quote VIP Code: FKT2468FEAD In 2013 Helsinki will again host this industry acclaimed forum which provides a gateway to shipping in the Arctic. The three day conference and one day seminar has grown in size and scope and In 2013 Helsinki will again host this industry acclaimed forum which provides a gateway to shipping offers attendees access to the latest information for those planning Arctic activities. in the Arctic. The three day conference and one day seminar has grown in size and scope and offers attendees access to the latest information for those planning Arctic activities.

• • • ••

Hear leading shipping industry speak about their strategies for operating in ice-covered waters Hear leading shipping industry speak about their strategies for operating in ice-covered Focus waterson experiences and voyage planning for the Northern Sea Route Analyse impact on and shipping andplanning commercial developments of climate Focus onthe experiences voyage for the Northern Sea Route change

Discuss shipowner/operator charterers’ perspectivesof onclimate meetingchange the operational Analyse the impact on shipping andand commercial developments and regulatory challenges • Discuss the shipowner/operator and charterers’ perspectives on meeting the operational • and Learn from the latest ship design options and technology for ice-going shipping and regulatory challenges offshore operations • Learn from the latest ship design options and technology for ice-going shipping and • Benefit an in-depth discussion on emergency response, safety issues and aids to offshorefrom operations navigation • Benefit from an in-depth discussion on emergency response, safety issues and aids to • Gain detailed knowledge of developments in ice navigation, ice management and DP navigation training in ice • Gain detailed knowledge of developments in ice navigation, ice management and DP • Update training yourself in ice on the latest developments in regulations for environmental protection and navigation in ice • Update yourself on the latest developments in regulations for environmental protection and navigation in ice For further information or to register please call +44 (0) 20 7017 5511 Scan with smartphone email maritimecustserv@informa.com OR Reader For further information or to register please call +44 (0) 20 7017 5511 Scan with or visit www.arctichippingforum.com App: smartphone email maritimecustserv@informa.com OR Reader or visit www.arctichippingforum.com App: Organised by: Official Publication: ••

Organised by:

Official Publication:

EVENTS

The Economist’s Arctic Summit March 12, 2013 Oslo, Norway The summit has been designed to focus attention and to promote constructive thinking prior to the next Arctic Council Ministers’ meeting in 2013. A high-level group of 150 policy-makers, CEOs and influential commentators will spend a day tackling the issues at the heart of the Arctic’s future. www.economist.com Arctic Technology Conference 2012 December 3 – 5 Houston, Texas OTC’s Arctic Technology Conference is returning to Houston for ATC 2012.

This highly focused, international conference will address the latest technologies and innovative practices needed for exploration and production in the Arctic. www.arctictechnologyconference.org Arctic Transportation December 3 - 6, 2012 Icelandair Hotel Natura Reykjavik, Iceland Increased resource extraction to support economic and community development and increased shipping traffic through Arctic waters have resulted in the corresponding need for an increased capacity to respond by sea and air. This workshop will look at transportation challenges in an increasingly busy Arctic. It is hosted by The Institute of the North. www.institutenorth.org Geopolitics & Marine Production in a Changing Arctic January 20 – 25, 2013 Tromsø, Norway Organised by Arctic Frontiers, this is a wide-ranging event attracting an international panel of speakers and delegates representing political, technological interests. Topics to be covered include oil and gas producer strategies for the Arctic, and jurisdictional issues linked to energy developments and boundaries. www.arcticfrontiers.com Northern Network on Climate Change February 4 – 7, 2013 Jokkmokk, Norrbotten, Sweden A melting Arctic and the world’s hunger for energy and metals are leading to an increasing interest

in exploring the Northern regions.

This conference asks, at what costs is that to happen and how will it affect people? This event will focus on a range is topical issues including Climate Change, Energy Production and the Arctic: conflicts and solutions. www.nncc.eu 2nd Arctic Region Oil & Gas Conference February 26 – 27, 2013 Stavanger, Norway The 2nd Arctic Region Oil & Gas (AROG) conference is an international forum that offers the industry’s perspectives on regional projects in the offshore Arctic.

Delegates will gain insight into Arctic projects and opportunities in the oil, gas and hydrocarbons industry in the world’s harshest climates, including Russia, Norway, Canada and Greenland. www.ar-oilgas.com Lillehammer Energy Claims Conference March 6 – 8, 2013 Lillehammer, Norway This event attracts representatives from global oil & gas companies, claims brokers and certain specialist service providers.

The programme has yet to be announced, but did include two Arctic-focused papers. www.energyclaims.net 13th Arctic Oil & Gas Symposium March 12 – 13, 2013 Calgary, Canada Since 2001, the Arctic Oil & Gas Symposium has been a major gathering place for industry players, community leaders, government and regulators involved in northern Canadian and US Arctic oil and gas development.

The Arctic continues to evolve and show much potential for business opportunities. Featuring high level

24 AUTUMN 2012 www.frontierenergy.info

keynotes, in-depth presentations, panel discussions and this event will address the most pressing issues effecting the Arctic. www.arcticgassymposium.com HSE in Oil & Gas in Russia, CIS March 19 – 21, 2013 Moscow, Russia Delegates at this event hear about HSE strategies from leading operators * updateson HSErelated draft laws: preparing for emergency contingency plan & technologies; pipeline maintenance; shipping safety and working with subcontractors on HSE standards.

Organised by Adam Smith Conferences. www.adamsmithconferences.com Arctic Oil and Gas North America April 10 – 11, 2013 St John’s, Newfoundland, Canada The popular AOG North America event has become a key strategic forum for the major stakeholders in the sector, and for 2013 have booked the Hon. Keith Hutchings, Minister of Innovation, Business and Rural Development for the Government of Newfoundland and Labrador to open the conference.

Other presenters include Jim Bruce, Director, Ice Engineeering, C-Core and Mike Paulin, operations director, Intecsea. www.ibcenergy.com The Barents Sea Conference April 23 – 25, 2013 Hammerfest, Norway This is part of the Offshore Northern Seas (ONS) foundation of events and for 2013 the discussions will focus on energy in the Arctic, and Norway’s role in the region. Trond Baardsen, managing director of the conferences expects about 400 visitors to attend the event. www.ons.no OTC 2013 May 6 – 8, 2013 Houston, Texas Founded in 1969, the Offshore Technology Conference (OTC) and exhibiton is the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production,

and environmental protection. www.otcnet.org 10th International Symposium on Cold Regions Development (ISCORD) June 2 – 5, 2013 Anchorage, Alaska The is year’s symposium takes as its theme, ‘Planning for Sustainable Cold Regions.’ Large scale projects in the gas and oil industry, mining, and other natural resource development are currently planned in the North, and successful project permitting requires significant preliminary work, such as environmental assessments, assurance for response readiness for incidents, and development of new sustainable technologies. www.asce.org/events 20th Caspian Oil & Gas June 4 – 7, 2013 Baku, Azerbaijan The event continues to grow in importance and size, and annually serves as a meeting place for regional and international oil and gas leaders and representatives from the Ministry of Industry and Energy of Azerbaijan, and Azeri national oil company SOCAR. www.caspianoil-gas.com/2013 ISOPE-2013 The 23rd International Ocean and Polar Engineering Conference June 30 – July 5, 2013 Anchorage, Alaska A large technical event looking at a wide range of topics from coastal engineering and subsea pipelines and risers, to nanotechnologies and Arctic-specific materials.

It is organised by Technical Program Committee (TPC) of the International Society of Offshore and Polar Engineers (ISOPE) with 27 cooperating organizations. Its objective is to provide a timely international forum. www.isope2013.org

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

6

GREAT REASONS to advertise with Frontier Energy

1 Targeted readership of senior decision makers 3 Distribution at key industry events 2 UNIQUE EDITORIAL PROGRAMME • • • • • • •

FPSOs Offshore support vessels Project focus Alaska Border disputes Ice technology Seismic

4 Industry leaders profiled 5 Key Arctic information and data 6 Linked to our exclusive eNewsletter!

Contact Steve Habermel NOW! publisher@frontierenergy.info

SUBSCRIBE TO FRONTIER ENERGY! OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

www.frontierenergy.info SPRING 2012

NORWAY LOOKING NORTH

NORTHWEST PASSAGE Arctic shipping

LIFE SAVING

Viking on board

NORD STREAM Landfall Germany

Arctic Futures SEARCH & RESCUE

ALASKA SEISMIC • ENVIRONMENT • REINDEER HERDING

15

EVENTS

WINE AZ AG NME

Frontier Energy is written for the fast growing international oil and gas industry market operating in harsh, ice-affected regions with a focus on the Arctic region.

Published quarterly, with a weekly eNewsletter, our readers are kept up-to-date with the latest news and analysis around the technical, commercial, political and cultural aspects of operating in ice environments, many of which are only now opening up to exploration and the search for hydrocarbons.

As the world’s first magazine to be focused on this sector, Frontier Energy is essential reading and will help to keep you ahead of your competitors, informed on strategic decisions, and up to date on the latest technical and R&D issues

SUBSCRIPTION RATE 1 Year subscription 4 issues £80.00 US$125.00 2 Year subscription 8 issues £120.00 US$185.00

PAYMENT DETAILS Please send me an invoice Please contact Steve Habermel, Publisher, Frontier Energy publisher@frontierenergy.info

DELIVERY INFORMATION To ensure you receive your magazine on time, please fill in all the fields that are marked with a star.

First Name* Second Name* Job Title Company* Address and zip code*

Houston awaits ATC 2012, 3 - 5 December George R. Brown Convention Center, Houston, Texas

O

il, gas and shipping companies are casting their eyes north to the remote Arctic, a region that offers a host of opportunities for companies that can solve the complex environmental, physical and regulatory challenges it presents.

At the same time, many of the key players in the region will be attending the biennial Arctic Technology Conference (ATC2012) in Houston. The event includes a highly specialised technical program, education courses, networking events, and an exhibition — all designed to help oil and gas professionals throughout the world succeed in the challenging Arctic region.

New for this year’s event is the ‘Spotlight on Arctic Technology’ programme. This awards programme is exclusively for ATC exhibitors and is designed to showcase the latest and most advanced technologies that are leading the future of Arctic exploration. To be considered for the Spotlight on Arctic Technology Program, the technology must meet five criteria: New — The technology must be less than two years old; dating from the first time it was introduced to the marketplace.

Innovative — The technology must be original, groundbreaking, and capable of revolutionizing the offshore E&P industry.

Proven — It must be proven, either through full-scale application or successful prototype testing.

Broad Interest — The technology must have broad interest and appeal for the industry.

Country* Phone number* Renaissance Media publishers of this magazine would also like to keep you informed of special offers and promotions via post, telephone or email. Please tick these boxes if you do NOT wish to recievese from us or from carfully selected partners

EMAIL OR POST THIS FORM TO: publisher@frontierenergy.info Renaissance Media Ltd c/o Eagle House, 25 Severn Street, Welshpool, Powys, SY21 7AD

Significant Impact — It must provide significant benefits beyond existing technologies. Environmental impact is an important judging criterion.

Also, this year’s event will host a range of topical breakfasts and luncheons. Delegates will be able to hear Professor Bernard Coakley of the Geophysical Institute, University of Alaska Rolling who will talk is titled ‘Dice on the Ice — Acquiring Underway Geophysical Data in the Arctic Ocean. Also speaking is Mikko Niini, president of Aker Arctic Technology, who will discuss the ‘Arctic Ocean — The New Route for Tanker Operators’.

Frontier Energy is a supporting publication for this year’s Arctic Technology Conference.

MONEY BACK GUARANTEE: you may cancel your subscription at any time and get the remaining balance on your subscription refunded.

Frontier Energy is a publication of Renaissance Media Ltd which is registered in England & Wales under registration No. 05850674. Registered address - Eagle House, 25 Severn Street, Welshpool, Powys, SY21 7AD. VAT Registration No. 134 1962 23

Full information and details about ATC 2012 can be found at www.arctictechnologyconference.org

PERIPHERAL VISION

Northern

EXPOSURE Many Northern Periphery countries are illuminated by Aurora Borealis

A

group of northern European, EU and non-EU states including Finland, Sweden, Scotland, Northern Ireland, Norway are working together with Iceland, Faroe Islands and Greenland to help and support communities on the northern margins of Europe develop their economic, social and environmental potential.

The European Regional Development Fund, Objective 3 within the Transnational Co-operation strand, funds the current version of the cooperation. In regards to the Northern Periphery Programme 2007-2013, the area has a number of dominant common characteristics, such as insularity, low accessibility, demographic challenges in age structure (aging inhabitants), sparse population, unique but vulnerable nature and ecology, impact of climate change, and high abundance of mineral resources.

The programme partner countries have agreed to address these characteristics

During the last 14 years a strong co-operation has existed between countries and regions in Europe’s geographic extremities in the north. They have a vision to combine their potential and achieve a sustainable high quality future for their indigenous peoples and environment. Bruce McMichael describes how the European Union-funded Northern Periphery Programme 2007 – 2013 is addressing these challenges

with two key priorities: firstly, innovation, networks and competitiveness; and secondly, environment as an asset. The funding will be used to innovatively develop new products and services connected to the existing solutions to the Northern Periphery.

The following case example demonstrates the success of the co-operation:

Older people for older people The increasingly aging population, but also increasingly more active senior citizens, requires new thinking in the provision of services to older generations.

The concept developed by O4O (an EU funded programme, Older People for Older People) is the provision of services by senior citizens to even older senior citizens, such as community-managed centres for older people and a luncheon club using local groceries from older people’s gardens.

The project has had a huge impact

Photo: iStock

Biomass energy Biomass is of increasing interest to the EU in the drive to get 20% of its energy from renewables by 2020. The RASLRES (Regional Approach to Stimulating Local Renewable Energy Solutions) project seeks to increase the use of and uptake of locally produced bioenergy resources in rural areas of Northern Periphery Programme countries. This holds the promise of major economic, social and environmental benefits for local communities. The project costs around Euro2.9m ($3.7m).

The project includes partners from Ireland, Northern Ireland, Scotland and Sweden. Together they looked at ways to create renewable energy markets from local wood, marine biomass (seaweed) and Reed Canary Grass (RCG), and energy crop that grows well in northern Europe. “We aim to create local jobs from local energy,” says Ian Brannigan, acting chief executive of the Western Development Commission (Ireland), lead partners in the project.

www.raslres.eu

in participating municipalities. New innovative solutions for voluntary service provisions have emerged where senior citizens have a more dominant role in sustaining municipalities in the margins of Northern Europe.

The project substantially increases the quality of life of older generations, both from a service provider’s perspective and that of the service recipient.

The current trend in climate change will be drastically changing the conditions for living and working within the Northern Periphery. It is generally accepted that not only are Arctic areas the first areas to be affected by climate change, but also the areas where the changes will have the greatest impact. It is therefore essential that existing Arctic strategies, European as well as national, are being respected.

The Northern Periphery Programme (NPP) is a well-functioning cooperation vehicle, with a strong national commitment and excellent management by partner countries. Its role in addressing arctic challenges, finding solutions for citizens to live and work in a changing environment will be of the highest priority, not only for the NPP area but also for Europe and beyond. The NPP 2014 – 2020 will have to make a difference. www.northernperiphery.eu www.frontierenergy.info AUTUMN 2012 27

INSIGHT Revealed - not just where ice forms, but also how ocean currents transport ice floes

MIT RESEARCH SEA ICE Each winter, wide swaths of the Arctic Ocean freeze to form sheets of sea ice that spread over millions of square miles. This ice acts as a massive sun visor for the Earth, reflecting solar radiation and shielding the planet from excessive warming

An icy forecast As Arctic temperatures drop each winter, seawater turns to ice — starting as thin, snowflake-like crystals on the ocean surface that gradually accumulate to form larger, pancake-shaped sheets. These ice sheets eventually collide and fuse to create massive ice floes that can span hundreds of miles.

28 AUTUMN 2012 www.frontierenergy.info

When seawater freezes, it leaches salt, which mixes with deeper waters to create a dense, briny ocean layer. The overlying ice is fresh and light in comparison, with very little salt in its composition. As ice melts in the spring, it creates a freshwater layer on the ocean surface, setting up ideal conditions for sea ice to form the following winter.

Heimbach and Fenty constructed a model to simulate ice cover, thickness and transport in response to atmospheric and ocean circulation. In a novel approach, they developed a method known in computational science and engineering as “optimal state and parameter estimation” to plug in a variety of observations to improve the simulations.

A tight fit The researchers tested their approach on data originally taken in 1996 and 1997 in the Labrador Sea, an arm of the North Atlantic Ocean that lies between Greenland and Canada. They included satellite observations of ice cover, as well as local readings of wind speed, water and air temperature, and water salinity. The approach produced a tight fit between simulated and observed sea-ice and ocean conditions in the Labrador Sea — a large improvement over existing models.

The optimal synthesis of model and observations revealed not just where ice forms, but also how ocean currents transport ice floes within and between seasons. From its simulations, the team found that, as new ice forms in northern regions of the Arctic, ocean currents push this ice to the south in a process called advection. The ice migrates further south, into unfrozen waters, where it melts, creating a fresh layer of ocean water that eventually insulates more incoming ice from warmer subsurface waters of subtropical Atlantic origin.

Knowing that this model fits with observations suggests to Heimbach that researchers may use the method of model-data synthesis to predict sea-ice growth and transport in the future — a valuable tool for climate scientists, as well as oil and shipping industries.

“The Northwest Passage has for centuries been considered a shortcut shipping route between Asia and North America — if it was navigable,” Heimbach says. “But it’s very difficult to predict. You can just change the wind pattern a bit and push ice, and suddenly it’s closed. So it’s a tricky business, and needs to be better understood.” http://ecco2.org/

Photo: Shell

T

he Arctic ice cover reaches its peak each year in mid-March, before shrinking with warmer spring temperatures. But over the last three decades, this winter ice cap has shrunk: Its annual maximum reached record lows, according to satellite observations, in 2007 and again in 2011.

Understanding the processes that drive sea-ice formation and advancement can help scientists predict the future extent of Arctic ice coverage — an essential factor in detecting climate fluctuations and change. But existing models vary in their predictions for how sea ice will evolve.

Now researchers at MIT have developed a new method for optimally combining models and observations to accurately simulate the seasonal extent of Arctic sea ice and the ocean circulation beneath. The team applied its synthesis method to produce a simulation of the Labrador Sea, off the southern coast of Greenland, that matched actual satellite and ship-based observations in the area.

Through their model, the researchers identified an interaction between sea ice and ocean currents that is important for determining what’s called “sea ice extent” — where, in winter, winds and ocean currents push newly formed ice into warmer waters, growing the ice sheet. Furthermore, springtime ice melt may form a “bath” of fresh seawater more conducive for ice to survive the following winter.

Accounting for this feedback phenomenon is an important piece in the puzzle to precisely predict sea-ice extent, says Patrick Heimbach, a principal research scientist in MIT’s Department of Earth, Atmospheric and Planetary Sciences.

“Until a few years ago, people thought we might have a seasonal ice-free Arctic by 2050,” Heimbach says. “But recent observations of sustained ice loss make scientists wonder whether this ice-free Arctic might occur much sooner than any models predict … and people want to understand what physical processes are implicated in sea-ice growth and decline.”

Heimbach and former MIT graduate student Ian Fenty, now a post doctorate at NASA’s Jet Propulsion Laboratory, have published the results from their study in the Journal of Physical Oceanography.

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

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

• • • • • •

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

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

For editorial enquiries, contact Bruce McMichael editor@frontierenergy.info For all advertising and sponsorship opportunities, contact Steve Habermel publisher@frontierenergy.info

Frontier Energy is your essential guide to these new markets!

www.frontierenergy.info

NEXT ISSUE Winter 2013

n y.i

fo

rg E e en SIT r e

ti EB n fro W

The only event of its kind in Canada that acts as a forum for you to gain valuable awareness into the progress and challenges around oil and gas development in the North and engage with the key players involved.

13th Annual

ARCTIC OIL & GAS

SYMPOSIUM

M a r c h 12 & 13 , 2 013 ∙ C a l g a r y 

MEET distinguished government officials, industry experts and peers interested in moving responsible development forward in the North



NETWORK with influential decision makers in a relaxed social setting – an unparalleled networking experience with everyone you need to know



DETERMINE next steps for your business with insights into the many opportunities the Arctic presents – shale, offshore, infrastructure, power and much more

Minister David Ramsay Government of Northwest Territories

Bharat Dixit, Ph.D National Energy Board

Larry Persily Alaska Natural Gas Transportation Projects

Dylan Jones President and CEO Canada West Foundation

Kevin Williams Chevron Canada

Cece McCauley Norman Wells Land Corp.

John Hogg MGM Energy Corp.

Charlotte E. Brower Mayor, North Slope Borough, Alaska

FOR MORE INFORMATION • 1-877-927-7936 • ArcticGasSymposium.com Presented by:

Sponsored by:

Media Partner:

Priority Service Code: 460CX10