Frontier Energy, Autumn 2014

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

PROJECT ROUND UP

“Victory” in the Kara Sea

www.frontierenergy.info AUTUMN 2014

DRILLING Technology

Kvaerner's Arctic solution

Sea Spray

Managing the risk to rigs

Made in Scotland

A new approach to ice measurement

Power Trip

The Yamal LNG carriers

ARCTIC COUNCIL • FRANKLIN DISCOVERY • INSURANCE • EVENTS

E D CO T ARTES L PO LA

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CONTENTS

06

26

18

21

Spring 2014 OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS

PROJECT ROUND UP

“Victory” in the Kara Sea

www.frontierenergy.info AUTUMN 2014

DRILLING Technology

Kvaerner's Arctic solution

Sea Spray

IN THIS ISSUE Features

Regulars

06 PROJECTS ROUND UP From Alaska to the Kara Sea, we round

Managing the risk to rigs

Made in Scotland

A new approach to ice measurement

up this year's offshore activity

Power Trip

The Yamal LNG carriers

10 POLAR CODE Lloyd's List Global Awards Maritime Lawyer of ARCTIC COUNCIL • FRANKLIN DISCOVERY • INSURANCE • EVENTS

DE CO R ST LA TE PO LA

On the cover A photographer on the bow of the National Geographic Explorer cruise ship off Svalbard in the Norwegian Arctic

the Year Michael Kingston of DWF updates on behind the scene's negotiations to ensure the Polar Code includes an ice regime

12 ARCTIC DRILLING The robustness of concrete is the key to Kvaerner's CONDRILL design for a drilling platform for Arctic conditions

14 ARCTIC DRILLING The team at DNV GL reports on a new JIP to reduce the risk of seaspray ice on rigs working in Arctic waters

16 ICE MEASUREMENT Fugro's GeoSAR technology won an ATC Spotlight award earlier this year. The team reports on how they came up with this breakthrough, and next steps

18 ICE MEASUREMENT Scottish marine consultancy SRSL has a low cost solution to help improve real-time measurement of ice

in the Kara Sea; ice extremes in the Arctic and Antarctica; Arctic collaboration for Finnish engineering companies; Barents Sea breakthroughs

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

28 INSIGHT Joe Mullins of the

20 ARCTIC SHIPPING Bigger, stronger and pushing the limits: how ABB's Azipod technology is driving advances for LNG carriers and other big ships in the harshest of environments

22 INSURANCE A new report highlights the risks involved in increased shipping in the Arctic region and the challenges facing insurers to assess and price these risks Cover Photo: Shutterstock

04 NEWS Russia's discovery

Arctic Oil Spill Response JIP shares insights into his job running a multi-company, multi-country project in the harshest of environments

26 FRANKLIN EXPEDITION The discovery of the HMS Erebus solves a 160 year old maritime mystery and helps PM Stephen Harper push Canada's Arctic sovereignty claims

27 ARCTIC ECONOMIC COUNCIL The inaugural meeting of the AEC was held in Nunavut in September. We report on this flagship policy of Canada's chairmanship of the Arctic Council and look ahead to 2015 as the US takes the helm www.frontierenergy.info AUTUMN 2014 01

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EDITOR’S LETTER

FRAM* “Arctic policy has never been more important”

www.frontierenergy.info Editor Amy McLellan editor@frontierenergy.info Editor in Chief Bruce McMichael Canadian Correspondent Andrew Safer Publisher Stephen Habermel publisher@frontierenergy.info Design & Layout In The Shed Ltd www.in-theshed.co.uk © 2014 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.

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Company number 5850675.

Arctic watchers are keeping a close eye on the US State Department to get some idea of its priorities when the US takes over chairmanship of the Arctic Council in April 2015. This summer Secretary of State John Kerry announced the appointment of the recently retired head of the Coast Guard, Admiral Robert Papp Jr, as the special US representative to the Arctic.

And in a move that might take some observers by surprise, Papp put climate change firmly on the US agenda. In a speech at the Washington DC-based thinktank Center for Strategic and International Studies, Papp said the US would pursue conservation in the Arctic with the same drive as John F. Kennedy's call to send a man to the moon after the Soviet Union's launch of Sputnik. "We have an obligation to protect this area of our earth for future progress, for the people that live there," he added.

Papp laid out three main themes that Secretary of State John Kerry will oversee as chairman of the Arctic Council from next Spring: ocean governance, climate change mitigation and adaptation, and improvement of the economic and living conditions of Arctic residents.

This will include specific initiatives such as providing more renewable energy to Arctic people in order to reduce their dependence on diesel generators, a source of black carbon which speeds up the melting of the Arctic ice. Telecommunications will also be a priority to support northern residents. Papp also pledged to make the Arctic Council “more forward leaning” with a focus on implementing solutions.

Papp said melting ice in the Arctic is a “national imperative” for the whole nation, not just Alaska.

“Unlike in Las Vegas, what happens in the Arctic does not stay in the Arctic,” he said.

This is a departure from the focus of the Arctic Council under Canada's chairmanship, which championed sustainable resource development and created the Arctic Economic Council – see our report on page 27.

Many have long felt that the US has failed to understand the importance of the Arctic, despite the fact that Alaska makes it a key Arctic nation. Kerry, speaking in July at the time of Papp's appointment, made clear that “Arctic policy has never been more important”.

“The Arctic region is the last global frontier and a region with enormous and growing geostrategic, economic, climate, environment, and national security implications for the United States and the world,” said Kerry.

Talk, of course, is easy. There are many challenges facing the Arctic Council, not least maintaining dialogue with key Arctic nation Russia, and it remains to be seen whether Papp's sense of urgency to address climate change results in actionable policies.

Amy McLellan, Editor

*

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

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

Get connected!

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

www.frontierenergy.info AUTUMN 2014 03

NEWS

IN NUMBERS

Rosneft used NADL's West Alpha rig for the frontier well

North Atlantic Drilling Ltd/Seadrill

103 km

A oil pipeline connects the Novoportovskoye oil, condensate and gas field in the remote Yamal peninsula to Cape Kemenny

US$120 million

The cost of two Alaska Class Ferries to be built at Ketchikan, the first Alaska Marine Highway System ferries to be built in Alaska

Rosneft hails Kara Sea discovery

Russia project report page 6

Alaska LNG begins regulatory marathon The companies backing a planned US$45-US$65 billion Alaska LNG project have made their initial filings with the Federal Energy Regulatory Commission.

This is the starting line for the lengthy environmental and safety review required to secure federal consents for the mega-project, which involves an 800 mile pipeline across Alaska and a liquefied natural gas plant at Nikiski. The plant will export up to 20 million metric tons of LNG a year — about 2.5 BCF of gas a day — for 30 years. Associated infrastructure includes a massive gas treatment plant on the North Slope, a 58-mile pipeline connecting the Point Thomson gas field to the Prudhoe Bay field, and a two-tanker marine terminal at Nikiski.

This "pre-filing" process comes with a proposed timeline showing a full application in September 2016, which would include a dozen "resource reports" documenting baseline environmental and safety data along the entire project route. FERC will set its timeline for reviewing the project, though the companies propose the commission issue the draft environmental impact statement in October 2017 and the final EIS in March 2018. According to the pre-filing, construction would start 2018-2019 and operations could begin 2024-2025.

Alaska LNG is a joint venture of ExxonMobil, ConocoPhillips and BP, the main oil and gas producers on Alaska's North Slope, which are working with stateowned Alaska Gasline Development Corp and pipeline giant TransCanada. The development team has started preliminary front-end engineering and design work, with an estimated cost of US$500 million. A decision whether to proceed to full engineering, design and permitting, which will cost north of US$2 billion, is anticipated late next year.

Under the National Environmental Policy Act, the developers will need to gather information on soils, vegetation, wetlands, fish, wildlife, geologic hazards, air and water quality, cultural and archaeological sites, subsistence activities, expected economic impacts and other ways the project will affect Alaska and its residents. The summer 2014 field work alone employed around 250 people.

04 AUTUMN 2014 www.frontierenergy.info

Staying busy in the Barents Sea

Lundin adds to oil tally near Gohta Lundin Petroleum has delivered another significant oil strike in the Barents Sea. The 7220/11-1 well on the Alta prospect in PL609 in the southern Barents Sea, just 20 km from last year's breakthrough Gohta discovery, encountered a gross hydrocarbon column of 57 metres, comprising 11 metres of gas and 46 metres of oil in carbonate rocks of good reservoir quality.

Two production tests were performed in the oil zone, producing 3,260 barrels of oil per day and 1.7 million cf/d of gas. Lundin reckons the Alta find is around 125-400 million barrels of oil equivalent, with the liquids component accounting for about 85310 million barrels.

CEO Ashley Heppenstall said the company was "very excited" by the discovery and has plans for three or four appraisal/ exploration wells in this area in 2015.

Statoil also had some good news, with a play-opening but subcommercial discovery with the Pingvin well in P7L713, 65 km northwest of the stalled Johan Castberg project. The Norwegian oil giant estimates the find could hold between 30 and 120 million boe.

Company briefs Dophin ok for Kara Sea seismic

POLARISK opens Oslo office

Norway's Dolphin Geophysical has received confirmation from the Export Control Division of the Norwegian Foreign Department that its seismic contract in the Kara Sea will not be subject to the sanctions regime.

London consultancy POLARISK Group has opened a new office in Oslo to be a "strategic platform" for detecting business opportunities and geo-political risks across the Finnish, Swedish, Norwegian and Russian Barents Arctic region.

BP Alaska jobs cut BP, still feeling the heat from its Macondo legal battles, has announced plans to cut around 275 staff and contractor jobs in its Alaska operations in early 2015. It follows the sale of interests in four North Slope oilfields to privately-owned Hilcorp in April.

Polarcus heads to Sakhalin Oslo-listed Polarcus and JSC Dalmorneftegeophysica have entered into a contract to provide 3D marine seismic acquisition services for a major energy company offshore Sakhalin. The four-month work programme will start in Q2 2015.

Photo: Harald Pettersen/Statoil

Rosneft has claimed a major discovery in the Kara Sea. Drilled against the backdrop of looming sanctions, the Rosneft/ExxonMobil JV drilled the Universitetskaya-1 well in record time – just one and a half months – with Rosneft boss Igor Sechin claiming a light oil discovery with a potential 750 million barrel resource.

"According to preliminary results, the resource base of the first hydrocarbons trap discovered through the drilling is estimated to hold 338 billion cubic meters of gas and over 100 million tons of crude,” said Sechin, adding that the oil was comparable to Siberian Light crude. He said the discovery would be named Pobeda, the Russian name for Victory.

NEWS

1846 the year the ill-fated Franklin Expedition was lost searching for the North West Passage.

168 years later, in September 2014, Canadian researchers find one of the lost ships on the Arctic seabed

74%

1.5 months, the record of respondents to an international time it took for Rosneft and poll commissioned

by Greenpeace support ExxonMobil to drill their Kara the creation of a protected sanctuary in the Sea oil discovery to beat sanctions deadline international waters surrounding the North Pole

US$500 million

The cost of the pre-engineering and design phase for the giant Alaska LNG project

1.5%

Rosneft takes a

30%

The Hebron GBS weighs in at a mighty

stake in North 180,000 tonnes Atlantic Drilling Limited Statoil finds gas column in the sub-commercial of the Arctic Ocean is protected — Pingvin well in the Barents Sea less than any of the world’s oceans

15 metre

Sources: Greenpeace, Gazprom Neft, Rosneft, Parks Canada, Statoil, Alaska.gov, ExxonMobil

Arctic collaboration for Finnish engineering companies Aker Arctic Technology, Elomatic and Wellquip have signed a cooperation agreement for design and marketing of offshore structures in Arctic and Sub-Arctic markets. The three companies can offer know-how and complete solutions for these markets, from conceptual development to project execution.

"Together we can deliver solutions for large projects," said Elomatic CEO, Olli Manner.

Helsinki-based Aker Arctic, which has been involved in many of the world's Arctic projects, specializes in the development, design, engineering and testing services for ice-going vessels, icebreakers and offshore marine structures; Pori-headquartered Wellquip has advanced offshore and oil and gas upstream technology solutions; Elomatic has process industry plant know-how, project management skills and engineering expertise.

The new cooperative's services for cold and ice water offshore projects included: environmentally friendly and energy-efficient solutions for the oil and gas industry, process industry plant design, development and design of offshore solutions; ice laboratory services and special solutions for ice management; concept and technology solutions for the marine and offshore industries, in particular for shallow-water conditions; innovative hydrocarbon production systems and related products and services; and project implementation.

Antarctic sea ice is poised to set a record maximum this year while Arctic sea ice looks to be down on last year, making it the sixth lowest extent in the satellite record. According to scientists at the National Snow and Ice Data Center in Colorado, in September a small area of the Laptev Sea ice edge was within five degrees of the North Pole due to persistent southerly winds from central Siberia. Arctic sea ice extent on September 15 was 5.07 million sq km, only 30,000 sq km below the same date last year yet low compared to the long-term 1981 to 2010 average. It remains better, however, than the extreme retreat seen in 2012 when the extent of Arctic sea ice was less than 3.5 million sq km.

At the opposite end of the Earth, Antarctic sea ice was at 19.7 million sq km in mid-September and continuing to increase.

Polar observers have been puzzling about the increase in Antarctic sea ice but scientists have suggested it could be down to changing wind patterns.

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Benefits • Exclusive news • Events calendar • Targeted audience

Photo: NSIDC

Arctic sea ice retreats...

Antarctic sea ice hits new maximum

Photo: Aker Arctic

The new agreement will allow the companies to tackle bigger projects in the Arctic

Arctic sea ice extent in mid-September was 5.07 million sq km. The orange line shows the 1981 to 2010 average extent for the same day.

PROJECT ROUND UP: RUSSIA & NORWAY

“VICTORY” IN THE KARA SEA

D

with US sanctions: the US Treasury gave escribed by Rosneft boss Exxon a short extension to work beyond Igor Sechin as “the most the sanctions deadline to enable the rig important event of the year for crew to wind down operations safely and the global oil and gas industry” it was secure the well. clear the world's eyes would be on the The well, some 250 km off the Universitetskaya-1 wildcat in the Kara mainland, was targeting a giant structure.

Sea. The well, a joint venture of the It was a pilot hole Russian oil giant and downhole and US supermajor data and samples ExxonMobil, was Sechin said the drill was a retrieved. Sechin always going to “united victory”, confirmed that a be controversial light oil sample because of its achieved thanks to a roster of had been extracted northerly location Western companies from the well, - Greenpeace had which he said was boarded the West comparable to Alpha rig before Siberian Light oil. He said this oil section it departed for the Arctic – but the hosted a resource of 338 bcm of gas and imposition of sanctions on Russia for its more than 100 million tons of oil (about role in the Ukraine crisis put the project 750 million barrels). Sechin said the field in the eye of a political storm. would be named Pobeda, which means The well was drilled in record time victory in Russia – a less than subtle – one and a half months – to comply

2014 has been another mixed bag for explorers in the Norwegian Arctic A busy exploration season in the Norwegian Barents Sea proved underwhelming in 2014.

Statoil's hopes of finding more oil near its stalled Johan Castberg project proved disappointing.

It did however make a sub-commercial gas discovery at the Pingvin prospect, which Statoil claimed as a play-opener in an unexplored area to the northwest of Johan Castberg.

Exploration further afield in the Hoop area, which was opened by OMV's Wisting Central oil strike in 2013, was also mixed. Statoil drilled three exploration wells in the Hoop area over the summer, attracting the ire of Greenpeace in the process. Apollo, the most northerly well yet in the Barents Sea, found a good reservoir but no hydrocarbons while Atlantis and Mercury were two small discoveries. OMV, however, had more success with its Hanssen discovery in PL537, some 7 km northwest of Wisting Central. The Austrian company believes Hanssen has added between 20-50 million boe, mainly oil, to its tally in the Hoop area, where it believes there could be more than 200 million boe. More drilling is planned in 2015.

For now Johan Castberg, which Statoil discovered in 2011-12 and is reckoned to hold 400-600 million boe, remains on hold while the joint venture mulls ways to curb the development price tag. These deliberations will not be helped by the recent softness in the oil price, which analysts have warned will put Arctic projects at risk.

This is too late to derail the first oil development in the Barents Sea, however. The Goliat oilfield, operated by ENI, is due onstream in mid-2015.

Prirazlomnoye: In September Russia's first Arctic oil field produced its millionth barrel

message to the world.

Indeed, he was quick to call the drill a “united victory” that had been achieved thanks to a roster of Western oil and service companies including ExxonMobil, North Atlantic Drilling, Schlumberger, Halliburton, Weatherford, Baker, Trendsetter and FMC. It is, of course, difficult to see what will happen next. The sanctions regime, which targets Russia's Arctic oil ambitions, mean its JV partner Exxon must now curtail the country's involvement in Russia and its access to Western technology required to tap these Arctic reserves is choked off.

Elsewhere in the Russian Arctic, Gazprom Neft has pumped its millionth barrel from the Prirazlomnoye field 60 km offshore in the Pechora Sea, which started pilot production in December 2013. In total some 2.2 million barrels of oil will be produced from the field in the first year of its development. The field has been developed using the Prirazlomnaya ice-resistant, stationary oil production platform. The field is currently pumping from one oil well and an injection well is being drilled. Four more wells will be drilled in 2015. At peak production of 110,000 bpd, expected by 2021, there will be 36 wells, of which 19 will be producers, 16 injectors and one absorption well.

Barents Sea: another mixed season with the drillbit

06 AUTUMN 2014 www.frontierenergy.info

Photos: Gazprom Neft & Statoil/Harald Pettersen

Against a backdrop of looming sanctions and environmental outcry, Russian oil giant Rosneft drilled the northernmost well in the world – and found oil

PROJECT ROUND UP: CANADA

From the cold-water lab to the FRONTIER BEAUFORT SEA Offshore Newfoundland & Labrador may not be in the Arctic but it is often billed as the world's “cold water laboratory”. Amy McLellan looks at recent projects in Atlantic Canada and looks at the regulatory status of exploration in the Beaufort Sea and off Baffin Island

T

here are long-established producing oilfields in Iceberg Alley: Hibernia and Terra Nova were pioneers of ice management technology and processes. Now other oilfields are being readied for production.

The ExxonMobil-operated Hebron project, for example, reached a significant milestone in July when tugboats pulled the 180,000-tonne gravity-based structure (GBS) to a deepwater (150 metre deep) construction site. Here, the floating GBS will be slip-formed to a height of 120 metres. The 700 million barrel oilfield is due onstream before the end of 2017.

Also well underway is Husky Oil's South White Rose extension project, where first oil is expected around yearend. A public review process is underway for the company's West White Rose extension project, with work ongoing to build a graving dock to support construction of a fixed wellhead platform.

New discoveries are being made. Statoil has had a run of success in the emerging Flemish Pass Basin, building on the success of its 2009 Mizzen oil strike with the Bay du Nord and Harpoon discoveries of 2013. There will be challenges ahead – the discoveries lie in 1,100 metres of water in a tough operating environment but Statoil is already talking about the Flemish Pass having the potential to become a core producing area for the group post-2020.

Photos: Shutterstock

The Beaufort Sea: regulatory review 2014 saw further evidence of renewed industry interest in the Beaufort Sea but first operators need regulatory backing for new goal-based approach to killing a blow-out in Arctic waters. This summer Canada's National Energy Board agreed to review whether contingency plans submitted by two oil giants would be adequate to deal with a blow-out before they file formal applications to drill. Imperial Oil and Chevron Canada submitted their requests to the NEB in the Spring, saying they needed more certainty

before committing to a formal request.

Both companies say drilling a same season relief well isn't feasible in the harsh Arctic environment given the limited operating window and want to know early in the regulatory process whether their proposed alternative solution would be acceptable to the regulator. NEB agreed to grant the reviews, saying each proposal would be weighed on its own merits with an opportunity for public participation in the review process.

Before drilling in the Beaufort Sea, operators need regulatory backing for a new goal-based approach to killing a blow-out in Arctic waters

an Arctic capable drillship as well as up to three high ice class icebreaking/multifunctional vessels.

Because these vessels are in short supply, the company would need to sign five-year contracts starting around 2016 or 2017 to procure those vessels. “Given Chevron’s experience elsewhere in the Arctic, it expects that these capital commitments will be highly significant,” it said.

“Chevron cannot make the above significant capital commitments for this specialized drilling and marine equipment without an advance NEB determination that the key building block upon which its drilling plans are being developed, the alternative well secure system proposed for use on EL 481, will satisfy the intended outcome of the SSRW [Same Season Relief Well] policy.”

Chevron plans to submit its SSRW equivalency application to the NEB in early 2015 with the assumption that the NEB can provide an equivalency determination by early 2016. A spokesman said “the foundation of Chevron's Arctic well secure system is the adaption of the now globally adopted well-capping approach within an Arctic operating environment.”

Elsewhere in the Canadian Arctic, the NEB approved a 2D seismic survey in the Baffin Bay and Davis Strait. The work, which was opposed by local communities and wildlife groups, has now been postponed until 2015.

Imperial Oil holds two licences in the Beaufort Sea, EL 476 and 477, about 120 km from the NWT coast. Imperial said an early indication on whether its sameseason relief well alternative is acceptable would “avoid unnecessary duplication and confusion.”

Chevron holds a series of blocks in the Beaufort Sea but attention is focused on its 100% owned EL481, some 250 km northwest of Tuktoyaktuk in the North West Territories. The company acquired 3,700 sq km of 3D seismic in 2012, the largest survey ever recorded in the Canadian Beaufort Sea and which was conducted without any safety or environmental incidents. The company is planning to drill on the licence in 2020, a venture Baffin Bay: seismic companies have postponed 2D shoot until 2015 that will require

www.frontierenergy.info AUTUMN 2014 07

PROJECT ROUND UP: USA

Industry, regulators and the Courts are working on a return to the Arctic

Joe White and the Arctic team at Houston-based Endeavor Management, which is advising Shell on its Arctic campaign, report on a problematic start to 2015 exploration in US Arctic waters

I

ndustry continues moving forward with planned exploration programs and necessary preparations continuing for the industry to re-enter US Arctic waters in 2015. However, the reentry date is elusive, difficult to pin down, and is not within industry’s control. This date rests solely with the US Courts and their efforts to resolve the case before it against the Department of Interior (DOI).

US Courts are not alone in controlling US Arctic OCS exploration in 2015.

Nature sets the date that ice returns to areas with drilling prospects, the 2015 working window for companies to complete exploration activities and exit the region, and the date industry can return for further operations in 2016.

Therefore, the decision date for moving assets into position to support drilling activities is in the crosshairs of two separate and distinct entities, neither of which is under industry’s control.

Regardless of the uncertainty, preparations must be made if exploration is to resume in 2015. Industry continues to plan and prepare so as not to lose another full year before continuing activities on submitted exploration plans.

But, these plans are now on hold, in flux, and being updated as regulators modify requirements following the Macondo incident in the Gulf of Mexico.

Regulators remain active and busy, developing new rules and regulations to be applied to future Arctic OCS exploration programs. According to local newspaper articles, updated plans are to be submitted for approval before further exploration can occur. This activity must continue in parallel with preparation activities.

The end game remains the same for all entities - Industry, Regulators, and 08 AUTUMN 2014 www.frontierenergy.info

Joe White

the Court: return to Arctic exploration.

Working independently of each other, each entity is aware of the impact their decisions and actions will have on the renewal of exploration in US Arctic waters.

All of this activity is occurring while potential operators and leaseholders sit in a holding pattern, awaiting the final resolution of these separate outcomes and watching expectantly for drilling success. Only after running the tightened regulatory gauntlet and overcoming the extreme operational challenges by one operator will multiple additional operators join the search for new Arctic reserves.

The decision date for moving assets into position to support drilling activities is in the crosshairs of two separate and distinct entities, neither of which is under industry’s control In the background of this domestic activity, US government sanctions imposed on Russia for their activities in the Ukrainian conflict are impacting Russia’s Arctic exploration and production operations. According to Reuters, Rosneft has an estimated 300 billion barrels of reserves in 44 offshore deposits in the Arctic and the Black Sea. The company had planned to develop the deposits with Exxon, Royal Dutch Shell, ENI, and Statoil but the Western companies' involvement in Russian exploration activities has been directly affected by recent US governmentimposed sanctions.

Last month Exxon received a reprieve from the US Treasury Department delaying sanction implementation to October 10 from September 26. This extension allowed Exxon to safely halt the Universitetskaya-1 well’s drilling operation with Rosneft in the Kara Sea,

protect the sensitive environment, and properly seal the well until the sanctions are lifted. Rosneft estimates that the Universitetskaya structure could hold up to 9 billion barrels of oil. Over the next four years, Rosneft and Exxon had plans to drill up to 40 wells in the Arctic. These additional tests will now have to wait for the political storm to pass.

What to expect next Crystal balls today are much more cloudy than usual on oil and gas exploration and production. The fact remains, however, that the world still needs oil and gas and the products derived from it, or civilization as we know it will change radically. The Arctic OCS by most available indicators still holds a large share of the world’s untapped reserves of oil and gas. It remains untapped because of the harsh environment, limited infrastructure, and extensive logistical support structure that must be created before each approved drilling season.

If drilling activities in US Arctic OCS waters resume as planned for 2015 and are successful, development will be delayed for a few years. Technology and equipment must be developed and built to extract the reserves from icy Arctic depths in a safe and environmentally sensitive manner, and then transport the liquids to refineries for processing and distribution.

Meanwhile, those individuals with past knowledge of the Arctic OCS, oil exploration and production activities, and their respective challenges, continue to age. With each passing year of inactivity many more of industry’s Arctic veterans will have retired or passed on, leaving an experience void that will have to be rebuilt. The industry will likely have to relearn some tough lessons through avoidable errors that these veterans have already overcome. Continued delay only compounds the challenging task of developing our Arctic reserves. www.endeavormgmt.com

Photos: Endeavor Management & USCG

THE TICKING TIMELINE

TBC

POLAR CODE

Industry is pushing hard to make Arctic operations safe

Michael Kingston

POLARIS:

BEHIND THE SCENES PROGRESS

I

n Frontier Energy's last issue I wrote about the importance of learning from the lessons of history.

I explained the shortcomings of the draft Polar Code, the fact that there had been no ice regime proposed for the Arctic or Antarctic, despite the final negotiations being imminent, and highlighted the consequences of failing to implement adequate regulation for Polar operations.

Agreement in principle had been reached on definitions for the different categories of ship and the requirements for safe operation in different ice types in Polar waters. All ships operating in Polar waters will require a Polar Ship certificate and Polar Waters Operation Manual, which is intended to give guidance for a range of planned and possible situations to determine the worst case scenario in the conditions that may occur.

That is only possible, however, if there is an ice regime and guidance from a jurisdiction with that ice regime: then you know the extremes of ice that may occur and can plan for a worst-case scenario.

Canada and Russia have ice regimes but 10 AUTUMN 2014 www.frontierenergy.info

in new areas of operation and in areas have stepped up to the mark and a system where temptation is opening up to the named 'POLARIS' (Polar Operational inexperienced - such as around Greenland Limit Assessment Risk Indexing System) - no ice regimes are in place. Therefore, has been developed following MSC93, without knowing the nature of a risk, when it was discussed informally. shipping cannot plan for a worst-case There has been significant input from scenario - there industry in this was no ice regime development with system referenced the International In new areas of operation and in the proposed Association of in areas where temptation Polar Code.

Classification is opening up to the If flag states with Societies showing little experience great leadership inexperienced - such as around approve Polar Water in forming an Greenland - no ice regimes are Operation Manuals informal technical currently in place and operators working group led obtain their Polar

by Rob Hindley, Ship Certificate Lloyd's Register's based on a lack of analysis of the risk Lead Specialist on Arctic Technology, because no ice regime is referenced then this based in Canada, with input from all is a recipe for disaster.

Arctic State delegates, and others.

Despite such a worrying scenario, as The aim of POLARIS is to provide a I reported over the summer, behind the standard approach for the evaluation scenes a lot of hard work was being of risks to the ship and ice conditions carried out to try and solve this problem encountered or expected to be in the Polar Code. I am now pleased to encountered by providing a risk index report that industry and IMO delegates in any geographical area that the ship

Photos: USCG

Michael Kingston, marine insurance lawyer at DWF LLP in London, who was recently named Maritime Lawyer of the Year at the prestigious Lloyd’s List Global Awards for his work on the Arctic, provides a timely update on the latest deliberations of the Polar Code

POLAR CODE

Photo: Shutterstock

Without reference to an ice regime, the Polar Code will leave shipping vulnerable in challenging waters

assisted by all the Arctic States and I have witnessed at first hand the general drive in industry to make Arctic operations safe. In August, I attended an ice workshop organised by the US Space agency NASA and the US Naval research laboratory at the John C Stennis Space Centre in Mississippi, led by Vanessa Escobar of NASA and Pamela Possey of the US Navy, held to discuss their upcoming satellite missions which they hope will assist in better monitoring of ice to aid with ice navigation.

Indeed the USA administration, which takes over the chairmanship of the Arctic Council in April, has made a significant contribution to the POLARIS proposals, and there is a drive to perhaps formalise the Arctic Council parallel proposals under their Chairmanship.

Additionally I witnessed similar industry drive when I had the honour of attending the Viking Ice Council in St Petersburg in October at the invitation of their President Captain Anders Backman, who took the first non nuclear ice breaker, ODEN, to the North Pole in 1991, and who has been instrumental in promoting safety in the Arctic.

Moreover, I write this piece from the North American Arctic conference is St John's Canada where there is a similar drive to make Arctic operations safe.

Indeed the way to operate safely was demonstrated by Canadian Arctic leaders FedNav when they took Nunavik through the North West Passage earlier this month, the first unassisted transit of a cargo vessel in history. It is incumbent on everyone in industry, Governments, and international regulators to push for the highest standards. It seems the message is getting through. Let's see where we are after MSC94. Thanks to the voluntary efforts of many great people in industry, such as FedNav, across the Arctic States and the Antarctic too, it could be a happy Christmas after all.

environmental IMO discussions closed is intending to travel. This is a system on each day. These informal discussions similar to the established Canadian Ice bode well for the drive to formally adopt regime, for other ice areas of the Arctic POLARIS at the official and final Marine or Antarctic, and effectively creating an Safety Committee 94 meeting at IMO Polar ice regime, drawing also on the Headquarters in mid November where the very experienced Finnish- Swedish Baltic Polar Code is scheduled to be finalised. system, and the Russian system, with But nothing is guaranteed, and we have heavy input from those jurisdictions. to wait and see POLARIS uses what happens and a Risk Index hope the Member Outcome (RIO) POLARIS uses a Risk Index States at the IMO value to assess understand the limitations for Outcome (RIO) value to assess extreme importance operation in limitations for operation in ice of the proposal and ice. For each do the right thing. geographical area It is clear now encountered the that industry is stepping up to the mark Risk Index Values (RV) assigned to the and it is pleasing to see. If the IMO ship, based on the ice class, are used to does not adopt POLARIS there has determine a RIO that forms the basis been a parallel drive through the Arctic of the decision to operate or limitation Marine Best Practice Declaration, a set for operation. Without going into the of voluntary standards that industry ins and outs in too much detail in this can adopt in any event in the absence of article, in summary, if the RIO is Zero standards, or in the presence of imperfect or Positive the ship can proceed without standards to prevent casualty. Also, speed limitation, if the RIO is between in addition to the Polar Code, strong -1 and -10 the ship can proceed with recommendations have been made to speed limitation, such speed is calculated the Arctic Council to set up a forum to

by POLARIS, and if the RIO is below monitor best practice and create an ice -10 the ship cannot proceed. There are regime to complement whatever Polar code also provisions for ice areas broken by emerges from the IMO, which each Arctic ice breakers, so ice breaker assistance is taken into account in the calculations. The Council member country could enforce.

The push for POLARIS has been limitations determined by POLARIS are to be included in the Polar Ship Certificate.

A draft of POLARIS was circulated by the technical working group and it Polaris: Risk Index Outcome for operations in ice has recently gathered further momentum when delegates met to discuss the environmental issues of the Polar RIO is zero or positive Proceed without speed limitation Code at IMO headquarters earlier in RIO -1 to -10 Proceed with speed limitation as calcuated by Polaris October. The delegates and industry RIO below -10 Cannot proceed participants worked into the long hours in informal discussions when the official

www.frontierenergy.info AUTUMN 2014 11

DRILLING TECHNOLOGY

CONCRETE:

the heavy duty solution

The CONDRILL Kvaerner's design for a drilling platform for Arctic conditions, known as the CONDRILL, is a concrete gravity base drilling platform that allows for yearround drilling and testing of exploratory wells in water depths ranging from 20 metres to 60 metres. This water range covers large areas of Arctic acreage, mainly quite close to the coast. The Norwegian drilling contractor Odfjell has worked with Kvaerner in developing drilling design requirements. Other leading drilling contractors have also been consulted.

The CONDRILL is a further development of an existing Kvaerner design, the CONDEEP, which has been tested and continuously developed for over 40 years and is proven to be a viable and robust solution for offshore operators.

The robustness of concrete allows facility installation in the harshest waters of the globe. The world’s largest object ever moved by man, the Troll A, is a CONDEEP design. The three platforms offshore Sakhalin and the Hebron platform currently under construction in Newfoundland are also CONDEEP designs.

The CONDRILL substructure bears a resemblance to the Sakhalin GBS platforms. The basic design is the same, 12 AUTUMN 2014 www.frontierenergy.info

up to 70% and 1.5 m thickness with the consisting of four 40 m high shafts use of ice breakers and ice-class tugs. supported by a rectangular 13 m high Relocation can be performed in a matter base measuring 130 x 100 m with a of days, depending on the distance to concrete volume of between 50,000 the next drill site, availability of support and 100,000 m3. The substructure vessels and actual ice conditions. can accommodate a topside load of Kvaerner has to date conducted a 20,000 tons, which is well beyond the number of pre-FEED studies for Russiaconventional requirement of a mobile based clients. Other concepts such as steel drilling rig. jack-ups, modification of existing rigs, As the CONDRILL would have to be and floaters for deeper waters, are also able to operate in very remote regions, it being evaluated. According to Kvaerner, is designed to be self-sufficient. Storage the feedback received from clients areas for equipment and consumables suggests that the CONDRILL is probably such as drill-pipe, drilling mud and fluids the only technical solution which they are much larger than normal. Design is believe is fully feasible and provides yearbased on being self-sufficient for two round operations. months of operation. The platform has One important aspect that remains living quarters for a crew of 170.

The CONDRILL’s concrete substructure to be solved before the CONDRILL concept is to prove successful is ownership is robust, ice resistant and virtually and predictability of future long term maintenance free. The substructure caters operation. Ownership and operation of for protection of risers and drill strings.

The concept may also allow for expansion drilling rigs traditionally fall to a drilling contractor. This and/or conversion is unlikely to to production change with the mode on a free The robustness of concrete introduction of shaft in the event the CONDRILL. a promising allows installation in the Drilling contractors discovery is made. harshest waters of the globe would likely want The use of to secure longer concrete ensures a term, multiyear high degree of local contracts before making the investment for construction content. GBS experience this specially purpose built advanced rig. from Sakhalin 1 and 2 shows 97% of Kvaerner also offers solutions for purchased materials in Russia and 92% deeper waters such as the CONDEEP™ Russian content related to manpower.

The CONDRILL is designed with ballast floaters and the concrete spar concepts, all concepts that leverage concrete’s extreme cells in the bottom part of the structure. duty benefits. The deep draft hull provides The feature enables the platform to be improved motion characteristics for areas de-ballasted, floated and towed to the with extreme weather conditions. With drilling site, also during ice season. It has oil storage capacity in the hull, with large relatively short skirts of around 5m which topside payload capacity and the possibility penetrates the seabed to ensure stability. for a mooring and connection buoy The foundation and skirts are designed to that can be disconnected if required, the cover a wide range of soil conditions.

The platform is designed to be relocated concepts are well suited for harsh weather conditions and remote areas including in ice conditions with ice concentration Source: ABS

D

eveloping technically feasible solutions for offshore drilling in shallow water Arctic regions which allow year-round drilling is a crucial enabler for oil companies. All year round drilling could potentially enable oil companies to drill multiple exploration and appraisal wells per year keeping the cost per well down – minimizing idle time – maximizing utilization of the drilling rigs and also reducing the time it takes to fully appraise a discovery so that an investment decision can be made.

Images: Kvaerner

CONDRILL: robust, ice resistant and virtually maintenance free

Drilling solutions that permit year-round drilling in shallow Arctic waters could prove critical to the economics of Arctic projects, writes Magnus Egge, VP business development, Kvaerner Concrete Solutions

DRILLING TECHNOLOGY

from the hostile environment. If an areas with iceberg exposure. As for fixed accidental event ice load does occur, these structures, the design of a floating platform platforms are designed with an acoustic will be dependent on the conditions at the hydraulic quick release mooring system field where it will be placed. that allows for quick disconnect, while Kvaerner has developed four different the risers will be emptied, sealed off and categories of concrete floater concepts: sacrificed. Kvaerner has conducted a The first category is for a field in a concept study linked to the Norwegian harsh environment. Typical locations are Barents Sea, and the concept has been the Norwegian Sea, and the southern model tested to verify hydrodynamic part of the Barents Sea. Proven concepts motions. are the Troll B The third category semisubmersible of floater concepts is (1994), and CONDRILL is designed suitable for harsher the Heidrun to be self-sufficient for two and more exposed TLP (1994). areas. The floaters With excellent months of operation are designed to be hydrodynamic able to disconnect motions in the and reconnect, and ice management extreme weather conditions off the coast operations may need to be stand-by or onof Norway, these concepts represent the first stage of the development towards the call for certain periods of the year.

And finally, the fourth category, harsher Arctic environment. where not only stand-by or on-call ice The second category of concepts are management will be required, but rather those that will operate in conditions with an active ice management operation regular ice exposure, but where global during a larger part of the year, to break ice load exceeding the mooring line up the continuous level ice surrounding capacity is a rare event and considered the structure. In this case, ice loading an accidental load case. These platforms exceeding the mooring lines’ capacity is are expected to be permanently moored no longer a rare event, but rather part of during the field life time, with the normal operations. mooring lines and risers well protected

Developing concrete floating solutions for year-round offshore drilling in Arctic areas is a targeted area within Kvaerner’s R&D program, where meeting the needs of oil companies moving further and deeper into the Arctic with technically robust solutions is a key objective.

Category three and four fall within Kvaerner’s R&D focus areas. www.kvaerner.com

CONDEEP is a proven and robust solution

SEA-ICE MASS BALANCE ARRAYS (SIMBA) from SRSL Autonomous, low-cost buoys that allow reliable measurement of ice thickness, ice movement and temperature profiles (through air, ice and sea) in Polar Regions; for tracking ice movement in real-time and validating or improving scientific models.

•

Bespoke flexible thermistor chain length 2cm and/or 50cm temperature profile resolution IP67-rated Peli Case 1550 housing for Ingress Protection Custom-made battery packs/s with long life (up to 18 months) Compact unit and small size (50x40x22cm) Iridium data telemetry and GPS Custom web interface for viewing decoded data Bespoke data sampling and transmission frequency

•

Easy deployment with instructions and technical support

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For more information visit www.samsrsl.co.uk/marine-services/sea-ice-mass-balance-buoys or email info@samsrsl.co.uk

DRILLING TECHNOLOGY

Large structures, such as drilling platforms and rigs, are not immune from the risks of spray ice

RIGSPRAY:

A NEW JIP TO MANAGE ICE RISK

T

here are visibly increased activities related to industry, population and transport in the exposed Arctic waters. Large parts of the Barents Sea, Chukchi Sea and the Russian Kara Sea - which are most likely to hold significant oil deposits - experience similar operating conditions to fields in the Norwegian Sea but bear witness to severe Arctic conditions for several months of the year.

DNV GL has been a pioneer in risk management in the Arctic. Though the risks associated with oil and gas exploration in the polar region has been well documented, experience has also revealed gaps in expertise. Much of the current practical knowledge is localised and limited to a relatively small number of specialists. Companies with an interest in the region have an obligation to educate employees of the operational and practical realities involved in any Arctic activity and to share those learnings.

14 AUTUMN 2014 www.frontierenergy.info

In order to source solutions to unique technical and environmental challenges across all areas and under all arduous conditions, R&D activity must be a united, and to some extent, transparent endeavour for the industry as a whole.

Joint industry projects (JIPs) are effective working platforms in which industry players are brought together in a neutral environment to facilitate speedy innovations and the development of products, practices and standards that set the industry benchmark.

Sea Spray Icing To provide safe and efficient operations in Arctic waters, icing caused by sea spray must be taken into account in addition to loads from wind, waves and sea ice.

Sea spray icing poses a danger on multiple levels. It is a well-known threat for commercial fishing craft and other relatively small vessels operating in the

area, endangering the safety of the craft and crew, through possible capsizing.

When the oil and gas industry started to advance into the Arctic in the 1970s, evidence showed that the stability of large structures, such as drilling platforms and rigs, also faced a similar threat, no matter what the size.

However, the primary concern for large structures including ships of more than 100 metres in length range, are more localised.

Specifically, it affected interference with normal operations as the build-up of ice can block functionality or access to equipment. For personnel working offshore it might also present a threat to their safety and ability to conduct emergency drills due to the obstruction of walkways or emergency equipment. Consequently, it is the added burden associated with ice removal, which is traditionally done manually with wooden bits.

Combined, these challenges make it necessary to design or winterise structures

Photos: Harald Pettersen/Statoil & DNV GL

Olga Shipilova

Drilling in the Arctic means rigs, drillships and support vessels need to contend not only with the risks of ice but also the less obvious but equally hazardous risks presented by sea spray icing. Olga Shipilova, Senior Researcher at DNV GL reports

DRILLING CLASSIFICATION TECHNOLOGY

and ships in a specific way to fulfil safety and operational requirements when the risk of icing is apparent.

Current standards provide guidance on lessening the impact of ice. Here, anti-icing measures are intended to prevent ice accumulation, for example,

Photo: DNV GL

Observations suggest sea spray may lead to approximately 60% of ice accumulated on the structure with heat tracing and sheltering. Deicing measures would remove ice already built up on the surface; it can be done manually or with hot water or steam.

However, the standards available today are general and not site and structure specific; they do not give a specific answer to how and where measures should be implemented. Taking into account the dimensions and complexity of offshore structures, solutions mitigating icing may be inappropriate as they may conflict with other safety strategies such as those to reduce the risk of fire explosions and gas entrapment. Moreover, these procedures may not fully eliminate the problem resulting in costly and unnecessary actions.

The Norwegian regulation NORSOK N-003 is currently being updated and ISO is developing a new standard on the collection and analysis of data for design and planning of operations in the Arctic. One of the goals of these activities is to make regulations and standards more specific and provide more information to be used during design and operation of Arctic vessels and offshore installations. With respect to sea spray icing, substantial difficulties may arise as icing events are difficult to categorise quantitatively. Icing depends on many environmental parameters: wave height and period, air and sea water temperature and wind speed. Moreover, the evolution of this process is tied to the design of the structure as icing, by nature, is a very case-specific issue.

Observations suggest sea spray may lead to approximately 60% of ice accumulated on the structure.

Unfortunately, knowledge on sea spray is very limited. Since sea spray depends on the design, a better understanding of sea spray generation due to interaction between waves and structure is needed.

This would require deep and careful learning from large-scale measurements.

To deal with this problem, DNV

GL initiated R&D activities to investigate solutions to deal with sea spray icing. The first step was the MarIce project; a multi-year, collaborative study

by Det Norske Veritas (DNV), the Norwegian University of Technology & Science, Statoil and the Research Council of Norway. The project developed experimental techniques for icing measurements in small-scales. MarIce also delivered a physically realistic model of the impact of sea spray icing on a vessel superstructure, which in many aspects is the most advanced model to date.

Based on these achievements, the company is now launching a new JIP – RigSpray. The underlying aim of the new project is to provide a methodology to be used during design and winterisation,

The new RigSpray JIP will lead to safer and more cost-efficient winterisation solutions for drilling rigs, production platforms and vessels operating in the Arctic giving the basis for the procedural implementation of the requirements when icing risk is acknowledged.

This methodology will include a model linking the key environmental parameters and ice accumulation.

Estimates of ice thickness and load at various locations on a structure based on orientation, implementation of icing mitigation measures, and metocean conditions, will also be conducted via case-specific simulations. The ambition is to extend local icing observations to a wider spectrum of metocean and structural conditions. The overall results of the project will lead to safer and more cost-efficient winterisation solutions for drilling rigs, production platforms and vessels operating in cold climate areas, such as the Arctic.

The DNV GL Arctic Risk Map

Arctic Risk Map The Arctic is not a monolithic area and icing is one of many risks. These include the seasonal distribution of ice, metocean (physical environment) conditions, sea ice concentrations, biological assets, shipping traffic and oil and gas resources.

Whilst declining sea ice is creating new possibilities for industrial activities in the Arctic, the region is highly variable in its resources and conditions, creating a complex risk picture.

DNV GL has developed a new Arctic Risk Map to assist decisions-makers manage certain types of activities, in specific areas, at different times of the year.

The interactive tool details the potential limitations of future activities, such as development and transportation, and is designed using multiple dimensions. As a collaborative tool, the map can only improve and fulfil its goal as an industry aid, through input from the industry itself.

Cooperation on oil spill prevention and response in such an environmentally sensitive area must be deepened at all levels. Although the likelihood of a major oil spill is low, the consequences could be significant. The map therefore boasts a location and season-specific index showing the environmental vulnerability of marine resources with respect to oil spill as an external stressor. It is clear that more emphasis should be put on regional risk assessments and crossboundary response planning.

As an independent body, the company takes an active role to ensure that regulations, technologies and standards are harmonised and adapted to the harsh Arctic conditions and that any increase in industrial activity has a strong focus on safeguarding life, property and the environment.

www.frontierenergy.info AUTUMN 2014 15

MEASURING SEA ICE

GeoSAR was developed as joint effort between NASA’s Jet Propulsion Laboratory and Fugro

GeoSAR:

from jungle canopy to Arctic ice

Over the past three years, Fugro has teamed up with university and industry partners to develop a specialised ice management capability that enables mapping, characterisation and monitoring of ice structures over large geographical areas.

Here, Fugro's Arctic Team discuss their award-winning technology

A New Discovery In 2012, Fugro began investigating the potential use of its GeoSAR system to provide ice thickness data over large project areas. GeoSAR is an airborne dual-band, dual-sided radar mapping technology, developed as a joint 16 AUTUMN 2014 www.frontierenergy.info

effort between NASA’s Jet Propulsion Laboratory and Fugro. It has been used extensively to map rugged terrain and dense tree canopy in equatorial regions. In such locations, its unique configuration of interferometric radar collects information about surface features (X-band) and penetrates thick foliage for near bare earth (P-band). Flown on a GulfstreamII jet aircraft, GeoSAR maps swaths simultaneously on both sides of the aircraft to generate high quality digital elevation models and imagery.

In 2010, the GeoSAR team left the

Eventually the team expects to be able to identify weak points in the ice, which will help vessel captains break ice safely and efficiently southern hemisphere and flew north to tackle an altogether different geography.

Alaska had just embarked on a statewide digital mapping initiative to update its decades-old topographic datasets. As part of that effort, Fugro was tasked with collecting data over the Alaska Range, an area comprising extreme elevation, year-round snowpack, and glacial terrain.

It was during this project that Fugro discovered the ability of GeoSAR’s P-band sensor to penetrate snow and ice.

Realizing the potential application of this technology to offshore ice management,

Fugro’s research and development team began working toward the design of a large-area ice thickness mapping solution.

Testing the Theory The general theory behind GeoSAR ice thickness mapping is that if the X-band signal provides elevation data for the top of the ice surface and the P-band signal penetrates to the bottom of the ice surface, then the difference of these two figures is the depth, or thickness, of the ice. This theory was first tested in April 2012, along areas of the Alaskan Beaufort and Chukchi Seas. Working with university and private industry partners, the team acquired X- and P-band GeoSAR data, as well as multiple ground control sources, including airborne- and ground-based electromagnetic data, ice cores, ice depth holes, and laboratory work to determine the chemical makeup of the ice cores. Although only first-year ice was involved in the initial research programme: results were positive, indicating significant ice penetration and demonstrating the potential to distinguish additional ice characteristics, such as deformation and age.

In April 2013, Fugro performed a follow-up adding a second industry partner to the research effort. Data collection again spanned across areas of the Alaskan Beaufort and Chukchi Seas, including a potential drilling location.

Gains in project planning, mobilization, and processing helped streamline the overall process, but once again a lack of multiyear ice in the project area kept the

Photos: Fugro

I

ce management remains one of the more challenging aspects of Arctic exploration and development.

With millions of kilometres of the Arctic Ocean covered in constantly moving ice, operators need accurate, current and detailed information about ice conditions.

For years, satellite imagery has been the standard tool used to understand regional ice conditions. These datasets, which can be acquired by optical- or radar-based sensors, provide a good two-dimensional overview of ice location and extent.

What satellite data lacks, however, is the ability to determine ice thickness, a characteristic critical to engineering Arctic infrastructure and to reducing risk in everyday Arctic operations.

Traditional methods for obtaining ice thickness measurements include drilling holes in the ice, dragging electromagnetic radar sensors on sleds across the ice surface, or deploying autonomous underwater vehicles (AUVs) equipped with upward-looking sonar systems to map the ice from the bottom up.

Each of these techniques is effective for small-to-medium sized studies, but their application is not efficient for the massive scale required by seasonal ice management programmes.

MEASURING SEA ICE

over an area known to contain in-situ multiyear and first-year ice.

Unlike the projects that came before, the sea ice was stationary, containing a good mix of multiyear ice and first-year ice. While data analysis is still underway, preliminary results are promising.

“We are seeing definite P-band penetration into multiyear sea ice,” said Joe Jones, Fugro’s GeoSAR programme manager. “We are still determining the depth of that penetration, but so far the results are The P-band signal penetrates to the bottom of the ice surface just what we expected.” In addition, the system has demonstrated the team from testing P-band penetration ability to successfully classify sea ice into over these most dangerous types of ice three categories: multiyear, first-year, and structures. Determined toward a common deformed ice. It can also identify ice islands goal, Fugro and its partners convened (glacial ice) embedded within sea ice. during the fall to design a program for the “These are significant findings,” Jones following year, this time selecting more precise project locations and adding an additional university partner to the mix.

Third Time Is the Charm This March and April, the team initiated a third sea ice mapping programme, this time focused approximately 100 miles northwest of Resolute Bay in the Canadian Beaufort

In 2013 a lack of multiyear ice in the project area kept the team from testing P-band penetration over these most dangerous types of ice structures

Newfoundland and Labrador’s Iceberg Alley

Your Path to the Arctic To start your path to the Arctic, please contact us by email at Arctic@gov.nl.ca or call toll-free 1-800-563-2299.

said. “The ice thickness data and ice class information will be fused into a single product, allowing our clients to complete information for effective ice management.” Building on this most recent project success, Fugro and its partners plan a fourth data collection programme in 2015 during the summer, when ice management is most needed.

A Complete Solution As part of the research and development effort, Fugro has developed an in-field processing system that enables X-band and P-band data processing immediately after each flight. All products can be created and delivered to the client within 4 hours of landing the aircraft. Deliverables include a multi-layered GIS database identifying dangerous chunks of ice and ice types.

Eventually, the team expects to be able to identify weak points in the ice, which will help vessel captains break ice safely and efficiently. Fugro is also exploring how to combine the ice thickness capability with existing oceanographic and ice monitoring capabilities to provide a complete solution for oil and gas exploration and development activities, including potential oil spill preparedness and response applications.

MEASURING SEA ICE

ARCTIC ARRAY

B

etween 1979 and 2008 the summer sea ice extent in the Arctic reduced from over 8 million sq km to around 4 million sq km. During which time, submarine measurements suggested that its average thickness plummeted by some 40%.

It is statistics such as these that made one game-changing reality clear to all; the Arctic could be ice-free during summer within our lifetime. Not only could this mean the opening-up of new navigation channels, but also exploration for and mining of untapped reserves of fossil fuels and minerals which have previously been ice-bound.

Since then, concomitant industry interest from sectors such as shipping, oil and gas and mineral mining has fuelled a surge in efforts to measure ice thickness using remote satellite methods (eg ESA Cryosat-2), and increasingly sophisticated modelling techniques to understand the movements of ice floes and the thickness of ice that may be encountered at this new frontier. However, the scale of reduction in Arctic sea-ice has major implications in terms of the global impact of climate change and is understandably of considerable scientific interest.

Sea ice reached a record minimum in 2012 and it is anticipated that this loss is going to continue apace with climate change in the future. Arctic sea ice extent averaged for the month of September 2014 was 5.28 million sq km. Nevertheless, current models are significantly under-representing the reduction, both temporally and spatially, and it is essential that long-term, highquality observational measurements, which encompass the annual cycle of

Sea ice: Long-term, high-quality observational measurements are essential

18 AUTUMN 2014 www.frontierenergy.info

growth and decay of sea ice (its mass balance or IMB), are performed. Only then will scientists be able to understand the processes involved and be able to validate and refine the models.

Realistically, this can only be performed through the development of a basin-wide network of reliable and affordable autonomous instrumentation.

While autonomous ice mass balance (IMB) buoys have been deployed over the past two decades and have indeed contributed to scientists’ understanding of ice growth and decay processes, deployment has been significantly limited by the cost of such systems.

The device takes only 30 minutes to install and is rugged, with the longest successful deployment being fifteen months in the ice Scientists at SAMS Research Services Ltd (SRSL) have developed a novel autonomous platform and sensor that replaces the traditional thermistor strings for monitoring temperature profiles in ice and snow using a chain of inexpensive thermistors linked by a single-wire data bus. By incorporating a heating element behind each sensor, the instrument is capable of resolving material interfaces (e.g. air–snow and ice–ocean boundaries), even under isothermal conditions. Crucially, the instrument is small, low cost, and easy to deploy and can reliably resolve material boundaries to within two centimetres resolution.

The device takes only 30 minutes to install and is rugged, with the longest successful deployment being fifteen months in the ice (at which point the unit was still functional but lost into the sea due to ice melt). The units are powered using easy to replace, custom battery packs containing alkaline D-cells for ease of transport. Typical installations are expected to have an on-site batterylife of up to 18 months, depending on

SIMBA: A low cost solution for array deployment

configuration settings, with options available for increased battery power allowing longer, hotter or more heating cycles. GPS sampling rate can also be varied. Data is automatically stored in database form on a server at SRSL, and can also be sent by email direct to the client. SRSL are also able to offer web interface support. The units also support remote reconfiguration via Iridium.

Temperature, GPS location and unit diagnostics data are transmitted back to SRSL via Iridium satellite network with a frequency that is configured by the user, making it possible for ships sailing through a network of buoys to have access to real-time information on the location and movements of ice, as well as the expected thickness. The low cost of the devices make it feasible to deploy large numbers in an array, so that better resolution of information is available to industry, and for scientists a more complete picture of sea-ice mass balance processes may be attainable. The devices. known as Sea-Ice Mass Balance Array (SIMBA) units, are produced in SRSL's dedicated manufacturing facility in Oban, Scotland to meet bespoke client specifications.

Research institutes all over the world have purchased SIMBA units, including the Polar Research Institute of China, the Alfred Wenger Institute (AWI) Germany, Nordic Centre for Earth Evolution (NordCEE) in Denmark, Woods Hole Oceanographic Institute, USA and the Australian Government -for deployment in Antarctica.

The Finnish Meteorological Institute (FMI) has been using SRSL devices since 2009 and first tested SIMBA on Lake Orajärvi in Sodankylä to validate a snow/ ice model for the land-locked Arctic Lake.

More recently, the Institute has used the units to provide up-to-date information on snow and ice in the Baltic Sea and to prepare long-range sea ice forecasts.

According to Bin Chen of the Finnish Meteorological Institute: “Installation was easy and the units provided FMI with the ice-thickness data we needed.” www.samsrsl.co.uk

Photos: SRSL

Measuring sea ice conditions in real-time has been a challenge for those seeking to work in Arctic regions or to research the impacts of climate change. Dr Keri Wallace of Scotland-based marine consultancy, SRSL, reports on one novel solution

ARCTIC SHIPPING TECHNOLOGY

Northern sea routes save time, but need powerful ships

INTO THE The goal of year-round traffic through the Arctic is now one step closer with the advent of the biggest, most powerful ice-breaking LNG carrier. Innovations like this are just the start of an Arctic technology revolution set to ripple throughout the wider shipping industry.

A

s the global search for natural resources and new sea routes continues, the brightest minds are focused on the Arctic. The remoteness and harsh conditions at this last, frozen frontier, coupled with its fragile environment, pose unique engineering and other challenges.

Mikko Niini, senior management advisor at Finland-based Aker Arctic Technology, which designed the new ice-breaking LNG carriers, says that for regular Arctic shipping to be viable, economies of scale are essential, “meaning the size of vessels operating there must increase.”

The first of the 16 new ice-breaking tankers is due to be commissioned in South Korea in 2016. The 16 vessels are being built for the Yamal project, which will see LNG transported from the Yamal peninsula in northwest Siberia to Europe and Asia. The contract includes an option to equip a further 15 vessels.

20 AUTUMN 2014 www.frontierenergy.info

not suit others, says Ørbeck-Nilssen.

The Azipod® propulsion units that “The industry will benefit from starting will power the 170,000 cubic meter exploration in areas where conditions LNG carriers will have a total output of are not so different from those we are 45 megawatts. The vessels will be built used to. We should not move to the with ice strengthening of ARC 7 category more unexplored areas before improved along an ice class scale that goes up to 9. technology has been developed and sound According to Niini, the new vessels experience gained in the ‘easier’ areas,” are just the start of further penetration he says. into the Arctic. “Looking at going east Azipod is the ABB Group’s registered of the Taymyr peninsula or through the brand name for their azimuth thruster, a Northwest Passage is the next step. So propulsion unit consisting of a fixed pitch we need to move step-by-step into the propeller mounted on a steerable pod, unknown. Not only are we talking larger vessels and more powerful propulsion units, which also contains the electric motor that drives the propeller. but harder ice calls for new dimensioning Developed in Finland, Azipod principles, maybe even new materials.”

Knut Ørbeck-Nilssen, president at DNV propulsion was originally installed on Finnish fairway support vessels for GL Maritime, agrees with this step-bymaintenance step approach. In a operations in ice. recent article on the They were later company’s website Azipod has been a game retrofitted to – “Can Arctic risk changer for ice-going ships Finnish tankers that be managed?” – have been used in he writes: “Some the Arctic since the areas, such as the 1990s and are part of virtually every new southern part of the Barents Sea, can be icebreaker design. considered very similar to the North Sea “Azipod has been a game changer with respect to climate conditions. But, for ice-going ships. ABB have been very in contrast, the east coast of Greenland is successful in that market. They have a far more remote and difficult area for the technical foundation to support offshore operations.” new developments where we push the Challenges in one area may not be an boundaries further,” says Rob Hindley, issue in others, and technologies and Arctic technology lead specialist at procedures suitable to one region may

Photos: ABB

UNKNOWN

ARCTIC SHIPPING TECHNOLOGY

Mikko Niini, senior management advisor at Finland-based Aker Arctic Technology

Niini in the Aker Arctic ice lab

Not only are we talking larger vessels and more powerful propulsion units, but harder ice calls for new dimensioning principles, maybe even new materials

Game changing power for ice-going ships

Lloyd’s Register in Canada.

But while these units have been successful in Baltic ice and other subArctic conditions, they have not been tested in multi-year ice conditions in the high Arctic yet.

“These units haven’t seen much multiyear ice,” says Hindley. “Now we need to ensure they are strong enough to withstand multi-year ice floes. We are beginning to see a gradual creep towards more harsh operations for Azipods, but I would say the concept still has to be proven in those conditions.

“Probably the harshest conditions to date have been experienced by the Azipodequipped Norilsk Nickel containerships operating independently year-round between Murmansk and Dudinka along part of the Northern Sea Route.”

He agrees with Ninni that the size of ships operating in the Arctic will have to increase if economies of scale are to work. “The original Finnish ice-breaking cargo ships were about 26,000 metric tons displacement, so we’re seeing a big step up to 120, 000 metric tons with the 170,000 cubic meter tankers for the Yamal project.”

Even bigger vessels will likely mean an increased steel weight, but while scientists are exploring the use of high-strength steels, Hindley cautions that this is again a case of going “step-by-step into the unknown.”

As Hindley says, “We have to be conservative in the structural design process for such large ships because we don’t have a firm understanding of the ice loads. We’ve only really started to touch on what can be done.

“We also need to look at alternative materials for the ice belt structure and close the knowledge gap of the nature of ice loads as the ship size increases.

But what we have learnt from before should always guide us in addressing the technical challenges of the future.”

Tim Kent, technical director at Lloyd’s Register, said the engineering challenge for Arctic and Antarctic operations is multiplied by several factors because an environmental incident in those locations just would not be accepted by society.

“Being such a different environment, it will drive technology. Solutions once demonstrated as possible here can then be adopted and embraced by the broader industry,” says Kent.

Finnish lead “The Finns are the leaders in Arctic shipping technology because they’ve done so much of it. ABB chose to house their Azipod factory in Finland. That’s where the knowledge is. You can see this core technology that is based in Finland spreading out across the world as these projects develop,” says Hindley.

The Yamal project is another example of cross-nation Arctic cooperation.

Independently-held Novatek, Russia’s second biggest gas producer after statecontrolled Gazprom, has a 60% stake in the project, while the remaining 40% is split between French oil and gas giant Total SA and China National Petroleum Corporation. The project is expected to produce 16.5 million metric tons of LNG per year.

The newbuild project for the ice-going LNG carriers was awarded to Daewoo Shipbuilding and Marine Engineering (DSME). The vessels will be able to operate in temperatures as low as minus 50 °C. The ships will use Azipod propulsion to move ahead in open water and in moderate ice conditions, and astern to cut through heavy ice up to 2.1 metres thick. Operations will be mainly without escort or icebreaker support.

“Operating LNG carriers in ice-locked waters year-round requires the highest standards in safety and efficiency,” says Veli-Matti Reinikkala, head of ABB’s Process Automation division. “ABB is very proud to have its technology selected for such a project.” www.abb.com/marine

This article was originally published in ABB's annual publication, Generations, 2014 edition.

www.frontierenergy.info AUTUMN 2014 21

INSURANCE

Transiting Arctic routes is not for the faint hearted

Increasing oil and gas activity means more ships working Arctic waters

NAVIGATING THE RISKS

M

ore traffic along Arctic shipping routes increases the risk of incidents in these challenging northern waters. For the global maritime community there are clear advantages to taking on this risk, as these routes can considerably reduce shipping time and fuel costs on journeys between Asia and Europe as well as eliminating the fees and cargo limitations of transiting the Panama and Suez canals.

Meanwhile fleets of seismic, offshore support and heavy lift vessels come in the wake of the growing numbers of oil, gas and mining companies operating in the Arctic waters off the Russian Federation, northern Alaska, Canada and Greenland.

According to a report published by Marsh, Arctic Shipping: Navigating the Risks and Opportunities, shipping firms need to ensure they have a full understanding of the risks involved in order to gain the confidence of insurers.

“While marine insurers are largely supportive of the development of Arctic shipping routes, they are extremely wary about incurring large, high profile losses while the market is still in its infancy,” said Marcus Baker, chairman of Marsh’s

Wreck removal: new regulations loom The Nairobi International Convention on the Removal of Wrecks is due to come into force on April 14, 2015. So far Bulgaria, Denmark, Germany, India, Iran, Malaysia, Morocco, Nigeria, Palau and the UK have ratified the Convention, which requires ships of 300 GT and over flagged at registries in these states, or calling at ports and terminals in the above states to have certificates evidencing sufficient insurance cover for wreck removal in accordance with the convention.

22 AUTUMN 2014 www.frontierenergy.info

Global Marine Practice at the launch of the report. “Currently, the majority of ships and their crews lack adequate experience, are unprepared, and the support facilities are not yet in place for full-scale commercial voyages through the Northern Sea Route and the Northwest Passage. In the absence of hard facts, it is extremely difficult for marine insurers to price an insurable risk, or even to agree to cover a voyage in the first place.”

According to Marsh, in considering the provision of marine hull and protection and indemnity (P&I) insurance, insurers and P&I clubs require more detailed information about vessel capabilities and available salvage services, with wreck removal, pollution risks and crew health and safety of

The support facilities are not yet in place for full-scale commercial voyages through the Northern Sea Route and the Northwest Passage major concern to underwriters.

Steve Harris, a senior vice president in Marsh’s Global Marine Practice, added: “The majority of transits that have already taken place in the Arctic were one-off voyages that have been permitted as extraordinary ventures, and were usually government-backed or sponsored.

Risk presentation is critical. Only if shipping firms can present insurers with the information they require, and all parties concerned take a collaborative approach to calculating these risks, will insurance capacity be readily available to support the growth in Arctic navigation.”

As sea ice melts due to climate change, there are opportunities for international marine transportation networks in

the Arctic, at least during the summer months. The international shipping industry is keen to start maximising the opportunities afforded by Arctic navigation. Yet the marine insurance industry – whose collaboration is essential to the commercial viability of Arctic transit – holds a host of safety and navigational concerns.

The risks include: • Extreme cold can cause engine problems.

• Lack of salvage support.

• Reduced coverage is available by navigation aids such as GPS and GALILEO. • Modern charts and hydrographic surveys may be inaccurate and limited in number.

• Magnetic compasses are unreliable at such high latitudes.

• Frequent heavy fog restricts visibility.

• Weather reports are often inadequate and violent storms can occur at any time.

• Rogue floating ice.

• Crew competency, particularly given the lack of experience of working in this region and the demands on the crew to remain vigilant for long periods.

Other issues that need attention include lack of support and salvage services in remote regions, where assistance may be unavailable or thousands of kilometres away. This means there's a real risk of a small incident escalating into a much more dangerous situation. And there's also the issue of the ticking clock as there's a limited window of time to respond to a situation before the return of winter. Any salvage operation in this inhospitable region would face a number of significant challenges including the dangers of performing underwater surveys of damage; some equipment, such as pumps, may not work in these extreme conditions; lightering (transferring cargo from one vessel to another) may not be an option; lack of temporary repair facilities.

Photo: USCG & Crowley Marine

As shipping increases in the Arctic, insurers are grappling with emerging new risks. Frontier Energy reports

6

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Project updates Regional focus Ice technologies Arctic vessels Arctic navigation Oil spill

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EVENTS

ATC 2015 March 23 – 25, 2015 Bella Center, Copenhagen In 2015 the Arctic Technology Conference will cross the Atlantic to Copenhagen to provide easier access for European and Asian Arctic practitioners. ATC is an Arctic-focused expansion of the Offshore Technology Conference (OTC), the world’s foremost event for the development of offshore resources in the fields of drilling, exploration, production and environmental protection. 2015 discussion topics will include Arctic Core Capabilities, Arctic Trailblazers, Arctic Past Projects and Global Arctic Market Outlook - Pushing the Frontier. www.arctictechnologyconference.org 10th Annual Arctic Oil & Gas Conference November 4 – 5, 2014 Thon Hotel Arena, near Oslo, Norway Arctic Oil & Gas Conference: Delivering technology innovations and operational excellence for safe, sustainable and economical development of Arctic resources.

Roundtable sessions on sustainable development of the Arctic’s natural resources, offshore pipeline design & engineering challenge, nontechnical challenges in operating in Arctic regions and the latest advances in ice-breakers for the oil & gas sector. www.ibcenergy.com/event/Arctic 4th Arctic Oil Spill Conference November 6 – 7, 2014 Thon Hotel Arena, near Oslo, Norway Bringing together senior level executives from oil companies, R&D organisations, spill contractors, regulators and NGOs, this event covers the pioneering technologies and methods, and emerging legislative and regulatory requirements, to mitigate environmental effects of E&P operations in the Arctic.

vessel owners/operators are pushed to their operational limits with the subsea vessel capabilities, operations, equipment and vessel design. This summit will provide essential updates and recommendations for operations on IMR, OCV, MPSV, DSV, ROV Support Vessel will be fully covered in this two day event, whilst considering the future of the subsea market. www.wplgroup.com Arctic Frontiers January 18 – 23, 2015 Tromsø, Norway Now in its 9th year, this thoughtprovoking conference, which brings together representatives from science, politics, and civil society, has the title Climate and Energy. It will address how upcoming challenges in the Arctic may be addressed to ensure sustainable development. www.arcticfrontiers.com

Design and Operation of OSVs for Ice and Cold Climates November 24 – 25, 2014 Bonhill House, London This seminar, organised by Lloyd's Maritime Academy, will discuss topics including: understanding the design process to tackle the problems of ice and cold climate operations; updates on the Polar Code and implementation status; developing safe and efficient risk management techniques; effective winterisation. www.lloydsmaritimeacademy.com/

Oil & Gas International Licensing 2015 Summit January 20 – 21, 2015 London The Summit is a global platform for those involved in oil and gas licensing, E&P, legalities, and procurement, to obtain a comprehensive understanding of how to effectively produce a licensing round and allocation system; to explore ways to adapt to demands and challenges around licensing procedures; gauge how to manage a licensing campaign, and meet international personalities from NOCs and Ministries that are responsible for establishing licensing rounds. www.oilgaslicensing.com

Subsea Vessel Summit December 3 – 4, 2014 Aberdeen, UK As E&P moves further into deepwater & harsh environments,

Arctic Shipping Forum February 24 – 26, 2015 Helsinki Congress Paasitorni Now in its 11th year, the forum covers maritime issues in Arctic

24 AUTUMN 2014 www.frontierenergy.info

waters, from the Polar Code to ship design and technology for icegoing vessels. www.informamaritimeevents.com Green Ship Technology Conference 2015 March 2015 Copenhagen, Denmark From policy to technology, this major event brings together decision-makers and thought leaders to help equip the shipping industry make informed decisions on crucial environmental issues. www.informamaritimeevents.com Arctic Region Oil & Gas Conference March 4 – 5, 2015 Radisson Blu Atlantic Hotel, Stavanger The conference provides an industry driven outlook on the regional projects that abound in the offshore Arctic region and aims to draw together a wide spread of companies working and operating in Arctic regions. www.10times.com/arctic-region-oilgas

Pipetech Americas March 10 – 11, 2015 San Antonio, Texas Now in its sixth year, this high level summit brings together decisionmakers and influencers in oil and gas mid-stream operations. www.pipetechamericas.com Arctic Oil & Gas Symposium March 10 – 11, 2015 Calgary, Canada Covering the latest developments and exciting opportunities in the North since 2001,the Arctic Oil & Gas Symposium, organised by CI Energy Group, brings together industry players, community leaders, government and regulators involved in northern projects.

Www.arcticgassymposium.com 6th Arctic Shipping Conference March 18 – 19, 2015 Montreal, Canada This event will highlight the achievements of Canada’s Chairmanship of the Arctic Council and discuss the USA’s forthcoming plans. It will review the need for improvements in infrastructure and

advancements in technology as well as operational and logistical challenges encountered by ship owners and OSV Operators in harsh Arctic conditions. It will address key developments in transport and regulation in the Arctic as well as commercial and safety issues. www.wplgroup.com Arctic Council Ministerial Meeting April 24 – 25, 2015 Iqaluit, Nunavut The meeting will bring together ministers of the Arctic states and high-level representatives of the Indigenous Permanent Participant organisations to set the Council’s objectives for the coming two years and highlight achievements during Canada’s 2013-2015 chairmanship of the Council, before handover to the US. www.arctic-council.org GOT LEADERSHIP – Helping the Energy Industry Untap its Full Potential April 28, 2015 Houston, USA Aimed at anyone in the energy sector who wants to develop themselves for greater things – both personally and professionally.

Leading energy and business speakers will focus on ‘How to be a Better Leader, Manager and Engineer’. www.theinspiringleadersgroup.com 3P Arctic, The Polar Petroleum Potential Conference October 6 – 9, 2015 Park Inn by Radisson Pribaltiyskaya, Saint Petersburg Organised by the American Association of Petroleum Geologists, 3P Arctic has been running since 2009 and is the leading geoscience event for the Circum-Arctic basins. www.3parctic.com

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

VICTORIA STRAIT EXPEDITION 2014

FRANKLIN'S LOST SHIP FOUND More than 160 years after they disappeared, a combination of 19th century Inuit oral history and modern ROV and sonar technology has located one of the lost Franklin Expedition ships. Amy McLellan reports on the discovery and its resonance for modern-day Canada

C

anadian Prime Minister Stephen Harper hailed a “historic moment” for his nation in early September when the 2014 Victoria Strait Expedition discovered one of ships lost in Victorian explorer Sir John Franklin's ill-fated 1845 search for the North West Passage. The ship, identified in October as HMS Erebus, was discovered by a multi-agency team on the Arctic seabed in the eastern stretches of the Queen Maud Gulf off the western coast of the Adelaide Peninsula. Parks Canada underwater archaeologists named the ship following a meticulous review of data and artefacts observed from the Arctic Ocean’s seabed and using high-resolution photography, high-definition video and multi-beam sonar measurements.

The Franklin expedition ships, Found: sonar image of HMS Erebus on the Arctic seabed

HMS Erebus and HMS Terror departed England in 1845 on a much-heralded Arctic expedition in search of a Northwest Passage. Under the command of Sir John Franklin, the two ships set out with a total complement of 129 officers and men.

The two expedition ships were last seen entering Baffin Bay in August 1845.

The loss of the ships and the fate of the crew has been a gripping historical mystery. Experts believe the ships were lost when they became locked in the ice near King William Island and that the crews abandoned them in a bid to reach safety. Franklin’s men are thought to have succumbed to a combination of exposure, starvation, scurvy and lead poisoning caused by soldering on tinned food or lead pipes in the ship’s water distillation system. Contemporary reports from local Inuits say the starving men resorted to cannibalism before they died: the news scandalised Victorian Britain yet cut marks on skeletal remains of crew members have since corroborated the reports.

Speaking in September, PM Harper said the discovery “goes a long way to solving one of Canada’s greatest historical mysteries”. The Canadian Government started searching for Franklin's ships

Parks Canada led a multi-agency search

in 2008 as part of a strategy to assert Canada's sovereignty over the Northwest Passage, which has recently become accessible to shipping because of melting Arctic ice.

Harper underlined the relevance of the Franklin expedition in the context of a modern, warmer Arctic. “Franklin’s ships are an important part of Canadian history given that his expeditions, which took place nearly 200 years ago, laid the foundations of Canada’s Arctic sovereignty,” the PM said in September.

This year's Victoria Straits expedition was the sixth major Parks Canada-led search for the ships since 2008, which over the past 16 years have painstakingly searched many hundreds of square kilometres of the Arctic seabed. The discovery of the ship and artefacts was made possible through a combination of Inuit traditional knowledge and modern technology. The southern strait was identified as a target search area as a direct result of 19th century Inuit oral testimony, which described a shipwreck to the south of King William Island.

Peter Taptuna, premier of Nunavut, said the Nunavut archaeology team had helped narrow the search by uncovering important artefacts on the land. “The Franklin shipwrecks are an important piece of Nunavut’s past, and this discovery strengthens the link between Inuit oral history and modern, global society,” he said.

According to John Geiger, CEO of The Royal Canadian Geographical Society “Erebus was one of the great exploration ships of its era, of any era.” This was the Sir John Franklin's ship, where he lived and likely died: “It was at the very centre of this great historical mystery,” says Geiger.

Designed as a Royal Navy bomb ship, the Erebus was converted into a polar exploration vessel in the 1830s. Further modifications were made ahead of the 1845 Franklin expedition, with a second layer of planking was added to the hull, the interior wall of which was reinforced with 25-centimetre-thick beams, to help it withstand the grinding pack ice of the Canadian Arctic. It was also reinforced with a diagonal iron brace on the interior of its hull. Iron sheeting covered the exterior of the hull, extending back about six metres from the bow. Diagonally cross-planked decks were designed to absorb and distribute the force of impacts over a wider area.

26 AUTUMN 2014 www.frontierenergy.info

A diver explores the wreck

Photos: Parks Canada

Arctic Shipping Technlogy: 1845 style

ARCTIC ECONOMIC COUNCIL

Aglukkaq's Arctic vision The first meeting of the Arctic Economic Council took place against a backdrop of strained international relations and environmental campaigners worried by its pro-development agenda. Amy McLellan reports

Photo: Arctic Council

S

eptember saw the inaugural company Baffinland Iron Mines [see meeting of the Arctic Economic right].z Council in Iqaluit, the largest town Jan Fritz Hansen, deputy director of in Nunavut – a region which is larger than the Danish Shipowners' Association, said Western Europe but only has a population his organisation was “very interested in of just over 30,000 people, primarily the opportunities for growth which exist Inuits. The creation of the AEC was a in the Arctic”. “Danish shipping has flagship policy of Canada's chairmanship the necessary experience and expertise of the Arctic Council to create an to offer its services when opportunities independent body to foster sustainable arise,” he said. "This is the beginning for development, including economic growth, the AEC. Soon working groups will be set environmental protection and social up, in which the focus from our side will development in the Arctic. be on shipping and offshore."

The initial AEC meeting brought Canada will host its final meeting as together business leaders and indigenous head of the circumpolar organisation in community leaders from the eight Arctic April. While critics say the organisation nations and permanent participant has taken a pro-development shift organisations. The purpose of this under Canada's leadership – and this first meeting was to create a general was always a stated aim with Nunavut framework for resident Leona further work, Aglukkaq always which will focus stating it was about Greenpeace has accused on market access “development for Aglukkaq of cosying up with and investments, the people of the public-private North” – others say "some of the biggest polluters partnerships, the country should on the planet" establishing local be applauded just foundations for holding the and developing Council together employment and educational at a time of rising regional tension as a opportunities for the indigenous people. result of the situation in Ukraine.

Canada's environment minster Leona Moscow sees the Arctic as key to Aglukkaq, speaking ahead of the two future economic growth, resource wealth day meeting, said the new body was “an and national security and pride. The historic moment for the Arctic Council West, in return, sees it as a lever to bring in its efforts to advance sustainable pressure to bear on Moscow for its development in the Arctic”. “I’m role in the Ukraine crisis, with recently confident that the AEC will be a strong imposed sanctions targeting Russia's and effective body that will help enhance offshore Arctic ambitions. For now, pan-Arctic economic cooperation for the however, the Arctic Council remains a benefit of communities and people in the forum for international collaboration Arctic,” she said. and co-operation. Canada, for example, Almost inevitably the new body has boycotted one low level Arctic Council been criticized for promoting a pro-oil meeting in Russia but it has kept agenda. Greenpeace has accused Aglukkaq negotiations open and hosted Russian of cosying up with "some of the biggest officials for meetings in Canada. It has polluters on the planet". It didn't help yet to be seen whether this policy of that the first meeting took place behind maintaining communication and coclosed doors or that key representatives operation will change when the US takes include oil majors like Rosneft and mining over the rotating chairmanship of the Council in April 2015.

Current AEC Representatives Canada Tom Paddon, President and CEO, Baffinland Iron Mines, Ltd. Lillian Brewster, Vice President Community Relations and Development, ATCO Group Peter Tapatai, President, Peter’s Expediting Limited Finland Ingmar Haga, Managing Director, Agnicio Eagle Finland Ltd. Rauno Posio, Owner and Marketing Director, Lapland Safaris Tero Vauraste, CEO and President, Arctia Shipping Ltd Iceland Bjarni Már Gylfasonm, Economist at Federation of Icelandic Industries Guðmundur Pétursson, Manager at ÍAV and Chairman of the Icelandic-Arctic Chamber of Commerce Kingdom of Denmark Peter Bay Kirkegaard, Senior Advisor, Confederation of Danish Industry Jan Fritz Hansen, Deputy Director General, Danish Shipowners’ Association Norway Charlotte Deemer Strøm, Head of Section, Norwegian Shipowners’ Association Kristin Krohn Devold, Director General, Norwegian Hospitality Association Erling Kvadsheim, Director, Environment and Industry Policy, Norwegian Oil and Gas Russia Georgy Petrov, Vice-President, Russian Federation of Chambers of Commerce and Industry Evgeny Ambrosov, Senior Executive Vice-President, Joint Stock company SOVCOMFLOT Andrey Shiskin, Vice-President, Rosneft Oil Company Sweden Dragan Nerandzic, Chief Technology Officer, Ericsson Canada Ltd. Frank Hojem, Director, Communications, LKAB United States Lori Davey, General Manager, Fairweather, LLC Bruce Harland, Vice President Business Development, Crowley Marine Services Inc. Gail Schubert, President and CEO, Bering Straits Native Corporation Arctic Athabaskan Council Ed Schultz, Founding Member of AAC Richard Nerysoo Aleut International Association Janet Reiser, Director, Business and Resource Development, Aleut Corporation Arlene Gundersen, President, AIA Board of Directors Inuit Circumpolar Council Tara Sweeney, Executive Vice President, Arctic Slope Regional Corporation Gwich’in Council International Ron Daub RAIPON Lyubov Peshperova, Vice President of RAIPON for the development of entrepreneurship among the Indigenous Peoples of the North, Siberia and far-East of the Russian Federation Alexey Panov, Entrepreneur, Leading expert in the field of historical-cultural research at the LLC “YuganskNIPI” Odissey Kutsurov, Official RAIPON representative and language advisor Saami Council Anders Blom, Managing Director, Njalla AB Anders Oskal, Executive Director, International Centre for Reindeer Husbandry

www.frontierenergy.info AUTUMN 2014 27

Source: Arctic Council

NWT: The AEC says it aims to foster sustainable development for people in the North

INSIGHT Left: JIP scientists at work Below: Joe Mullins

The glaciers on Svalbard are spectacular in scale, scope, and color of the ice

15 projects, 14 time zones, 10 companies:

THE ARCTIC OIL SPILL JIP

I

usually start work at about 8am, with just a short trip down the stairs to my basement office. It’s a significant change from when I worked for the US Federal Government and had to be out of the house by 5:30am, with a killer 200km round trip to Washington DC! I am just a cup of coffee for breakfast person and I usually end up reheating my cup 2-3 times as I let it sit while typing or on a conference call. The JIP encompasses scientists and engineers from 10 oil and gas companies across 14 time zones from Alaska to Kazakhstan, so when I log-in people in Europe have already replied to my emails.

I usually visit the Arctic in autumn, winter and spring to participate in the research experiments and so I have several one-piece overalls for above zero, below zero and extreme cold. We also have to wear steel toe insulated work boots and a shank for protection, as well as hard hats for some tasks. Each location has a safety plan and an officer that designates the types of clothing and protection required. In addition to the everyday safety briefings, I have had helicopter survival, snow machine driving, and polar bear awareness training.

We usually fly into a major airport and then transfer to a small plane, ship, or helicopter to take you to the job site. At the job site (if it’s on land), we travel by snow machine and helicopter.

My days vary depending on the season; in spring and autumn, our experiments evaluate technologies and methodologies for conditions when water freezes and melts. In winter, the extreme cold and lack of daylight adds an extra layer of complexity, but it is also crucial to conduct experiments so we can further develop remote sensing equipment to map the presence of oil in low light conditions.

The Arctic JIP currently has fifteen projects underway, many involving laboratory, tank testing, and field research experiments. I am involved in the entire JIP contracting process from development of the Request for Proposal to ensuring a rigorous and unbiased review, developing the schedule of key deliverables, timeline and invoicing plan, and implementing the project, responding to emails that come in overnight and putting out any ‘brushfires’ that have popped up . There are always contractual issues to address, research, test, and HSE plans to review and approve, laboratory, tank testing, field research experiments to monitor, and reports to review and edit. A new 28 AUTUMN 2014 www.frontierenergy.info

facet of my job involves participation in the JIP communications effort. I participate in interviews with news and trade journalists to provide external information on the JIP and write articles with technical information/project progress for companies internal and external media.

The Arctic JIP is now moving into the research phase of the programme which involves experiments with dispersants, in situ burning, remote sensing, and environmental effects throughout the Arctic (Canada, Norway, US, Denmark, Finland) in 2015 and 2016, which I will be travelling to for site visits and meetings.

The different Arctic regions are unique. Working in Svea, Svalbard, Norway was very interesting. Our research station is located on the coast 2000 feet below the top of a butte overlooking a fjord. You fly into Longyearbyen and transfer to snow machines for the trip – one time my friend Hans yelled “keep on the throttle!” as he headed over the side of the mountain. I gunned my snow machine and it was an ‘eventful next few minutes’ until I got to the bottom. The glaciers on Svalbard are spectacular in scale, scope, and color of the ice.

Conversely, the islands off Northern Canada are very rugged and teaming with bird colonies and marine mammals. Alaska has high rugged mountains until you get past the Brooks Range, then the terrain flattens out all the way to Prudhoe Bay. I find myself going back to work for an hour or two after dinner to finish up any last emails that have come through. It seems no matter what time of day or night I send out emails, someone is logged on and replies! Being an effective programme manager means you also work weekends to keep projects on track and moving forward.

Some of the best bits of the job are mentoring and working with young scientists that are planning to work in the oil spill response field, seeing them graduate with masters and doctorate degrees and then working with them on research projects is hugely rewarding. It is also great to see the technologies and methodologies developed through research being used by industry, response organisations, and governments to detect, contain, and cleanup oil spills in the Arctic. I also get to work alongside some smart, brilliant scientists. Sometimes I just sit back in awe.

Photos: Arctic Oil Spill Response Technology JIP

Working across 14 time zones on a 10-company JIP to research the best technologies for Arctic oil spill response means a long working day for Joe Mullins, project manager of the Arctic Oil Spill Response Technology Joint Industry Programme

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

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

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If your job is to safely and effectively discover and produce the vast energy resources in the Arctic, you need to participate in the only event that has the industry and society credibility to bring it all under one roof.

Participate in ATC with confidence: • The combined reach and credibility of 14 of the world’s top engineering and scientific organizations and OTC’s 45 year history and legendary success • Three years of demonstrated success attracting some 1,500 E&P professionals from 26 countries and 80 exhibiting companies • The world’s most focused yet comprehensive Arctic conference built with expertise representing every technical discipline • Copenhagen’s geo-strategic location provides easy access for all European Arctic professionals while also drawing experts from North America and around the globe

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