Frontier Energy, Summer 2017 by Frontier Energy

OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS www.frontierenergy.info SUMMER 2017

RUSSIA Vessel construction, ports, infrastructure

ARCTIC VESSELS Ice class gets bigger, heavier, increasing options

ICE CRUSH Crushing ice to save platforms

HEAVY LIFT Red Box delivers Yamal modules

INSIGHT Maritime Museum hosts Franklin show

+ NEWS • RESEARCH • INSURANCE

• NAVIGATION

T N E GS V E TIN S LI

REDUCE THE RISK OF FAILURE, ACCURATELY MEASURE THE PROPERTIES OF

PERMAFROST If you want to know how AskFugro.com

CONTENTS

21 Summer 2017 OIL, GAS & SHIPPING IN THE ARCTIC AND ICE-AFFECTED REGIONS www.frontierenergy.info SUMMER 2017

IN THIS ISSUE

RUSSIA Vessel construction, ports, infrastructure

Features

ARCTIC VESSELS Ice class gets bigger, heavier, increasing options

ICE CRUSH

FE 06

Crushing ice to save platforms

HEAVY LIFT Red Box delivers Yamal modules

INSIGHT Maritime Museum hosts Franklin show

Regulars

RUSSIA Arctic activity across Russia’s northern and far east regions are the most active anywhere around the North Pole. LNG plants, new ports and new icebreakers are all being developed to exploit the region’s natural resources

11 COLLABORATIVE ENVIRONMENT Canadian tech ﬁrm Rutter Inc. has T

+ NEWS • RESEARCH • INSURANCE

• NAVIGATION

completed a collaborative initiative with Statoil Canada Ltd. and the InnovateNL programme organised by the Provincial Government of Newfoundland and Labrador to improve offshore oil and gas operations in harsh environments

EN EV TIN LIS

FE On the cover Heavy lift success in the Arctic

FE 12

ARCTIC VESSELS Arctic-ready vessels with ice classiﬁcation are being designed and constructed around the world. Here we look at developments and take a closer look at what is going on at Dutch newcomer Red Box Energy Service, whose current ﬂeet is focused on semi-submersible vessels and two newbuilds with PC-3 classed for year-round work including the harsh, cold dark months of an Arctic winter

FE 20

ICE CRUSH Doctoral student Niek Heijkoop is collaborating with other researchers, including several from the Norwegian University of Science and Technology (NTNU), to test ice that has cyclic – or regular – stresses applied to it. Here, he describes what he is trying to achieve

Cover: Image courtesy Red Box Energy Services]

21 DECOMMISSIONING Conditions throughout the Arctic present challenges in every phase of operation from geophysical data acquisition, exploration and appraisal drilling, construction and commissioning, to production and ﬁnal decommissioning, says the International Association of Oil & Gas Producers

22 MARINE INSURANCE As Arctic sea ice declines due to global warming, more vessels, ranging from cargo carriers to cruise liners, are taking tourists to waters in the far north, leading to greater risks of maritime incidents in that region. Here we look at how the industry is planning with this challenge

24 RIG SPRAY Sea spray icing poses a threat on multiple levels from personal safety and hindering operation of essential components to jeopardising the stability and integrity of offshore structures and vessels. The Rig Spray JIP aims to understand and mitigate these issues

25 ARCTIC SHIPPING The initial Best Practice Information Forum was recently held in London aiming to support effective implementation of the Polar Code by making publicly available at a web portal hyperlinks to information relevant to all those involved in safe and environmentally sound Arctic shipping. Here we look at some of the highlights

04 NEWS Russia’s largest independent natural gas producer Novatek has started building a shipyard in Kola; Low oil prices are impacting Norway’s northern ambition; The Arctic Economic Council (AEC) has elected Tero Vauraste, President and CEO of Arctia; U.S. Bureau of Ocean Energy Management approves oil and gas company’s plan to drill four exploration wells in federal areas of the Beaufort Sea; Statoil and exploration partners ENI of Italy and Petoro also of Norway drill a gas discovery in the Barents Sea; Nova Scotia issues new call for exploration bids; British and Russian Arctic researchers seek common ground FE 26 INSIGHT London’s National

Maritime Museum (NMM) is hosting a major exhibition, exploring the mysterious fate of Sir John Franklin and his crew on their ﬁnal expedition – a mystery that still remains unsolved today. The exhibition was developed with support from the Canadian Museum of History

www.frontierenergy.info SUMMER 2017 1

AUDAX and her sister ship PUGNAX, the world’s only PC-3 Arctic Module Carriers serving the construction of YAMAL LNG

ZPMC – RED BOX ENERGY SERVICES Hofpoort Building, Hofplein 20, 14th floor, 3032 AC, Rotterdam, The Netherlands t: +31 (0) 10 2680 200 f: +31 (0) 10 2680 201 e: sales@redboxgroup.com www.redboxgroup.com

ANTICIPATE • COMMUNICATE • COOPERATE • LEAD

EDITOR’S LETTER

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“Arctic politics, technologies and organisations are all undergoing rapid change”

www.frontierenergy.info Editor Bruce McMichael editor@frontierenergy.info Canadian Correspondent Andrew Safer Publisher Stephen Habermel publisher@frontierenergy.info Design & Layout Nick Blaxill © 2017 All material strictly copyright, all rights to editorial content are reserved. Reproduction without permission from the publisher is prohibited. The views expressed in Frontier Energy do not always represent those of the publishers. Every care is taken in compiling the contents, but the publishers assume no responsibility for any damage, loss. The publisher, Renaissance Media, assumes no responsibility, or liability for unsolicited material, nor responsibility for the content of any advertisement, particularly infringements of copyrights, trademarks, intellectual property rights and patents, nor liability for misrepresentations, false or misleading statements and illustrations. These are the sole responsibility of the advertiser. Printed in the UK. ISSN 2047-3702 Published by Renaissance Media Ltd, c/o Maynard Heady LLP, Matrix House, 12-16 Lionel Road, Canvey Island, Essex SS8 9DE. Registered in England & Wales. Company number 5850675.

FRAM* Buried beneath sheet ice and tundra, around 22% of the world’s undiscovered oil and natural gas reserves are estimated to lie within the Arctic Circle. Huge technical, environmental, legal and many more challenges suggest that this figure is unlikely to change in the short to medium term while a rolling series of good news, bad news stories has created a ‘will they, won’t they’ atmosphere around E&P activity. With the ongoing impact of US-produced shale gas and oil on volatile global prices and the legislative fallout of environmental disasters such as the Deepwater Horizon disaster of April 2010 in the Gulf of Mexico, exploration efforts splutter across the Arctic. However, activity in the Russian sector of the Arctic continues apace with, as we report on page 6, Yamal LNG and Novatek taking a pivotal role in development of the huge gas supplies in Western Siberia. Oil production above the Arctic Circle started in Russia with the 1962 discovery of the Tazovskoye13 field, and continues to grow. Around 2012, as interest in developing the Arctic was intense amongst explorers, government and environmental campaigners, a report from the UK-based international affairs think tank Chatham House, said: “Given the Arctic’s iconic status and sensitive environment, Arctic development is often politically contentious, with sometimes opposing interests and perspectives between local, national and international levels. Political support for development will continue to represent an uncertainty for businesses seeking to invest in Arctic projects”. Thus, upstream development across the Arctic faces extreme and fast changing risks, which only robust safety systems can begin to make operations profitable and sustainable. Rigorous and practical risk mitigation measures must be put in place and companies, government agencies must work together to ensure environmental management is managed effectively. However, development work is ongoing governed by companies’ balance sheets, oil prices and how the geography of the sea and ice above the Arctic Circle responds to changing physical states and the melting ice sheets. Opening up remote, challenging frontier areas such as the Arctic brings significant logistical challenges ranging from using nuclear-powered icebreakers to cut through metres of pack-ice sheets to delivering equipment from drilling rigs to pipes, chemicals and people. Companies such as Rutter and Red Box Energy Services are working hard and developing technology and processes that aim to make operating in these harsh environments safe and profitable, as we report in this issue. Wherever you are in the Arctic, it’s a frontier play without infrastructure but one that offers great opportunity and responsibility. SPE Offshore Europe 2017 Every two years, tens of thousands of engineers, designers, managers, politicians and the students representing the next generation of oil men and women descend on Aberdeen, the centre of the UK oil and gas industry. They’ve registered for the SPE Offshore Europe, which this year takes on decommissioning as its special focus with a range of expert speakers announced as part of the plenary and a Decommissioning Zone technical programme in place. The issue is relevant for companies seeking long term public consent and trust to allow development in the precious Arctic environment. Supported by Decom North Sea, the new Decommissioning Zone will deliver an extensive line-up of expert opinion and technology including presentations hosted by ITF, The Society for Underwater Technology, ImechE and Decom North Sea. The show is set gather thousands of highly targeted technical, business and government industry professionals with exhibitors including Diaquip, Integrated DECOM, EMAS Energy, Fairfield Energy, Petroplan Europe and Xodus Group among those signed up. Copies of Frontier Energy magazine will be distributed at the show. www.offshore-europe.co.uk

Fram is not only the Norwegian word for ‘Forward’, it is also the name of the one of the first ice-strengthened and most famous polar exploration vessels of the late 1800s and early twentieth century. It was captained by Norwegian explorer, Fridtjof Nansen, a Norwegian explorer, scientist, diplomat, humanitarian and Nobel Peace Prize laureate. Sharing his polar travel experiences with fellow adventurers and scientists, his technology innovations in equipment and clothing influenced a generation of subsequent Arctic and Antarctic expeditions. The word encapsulates what we aim to bring you with the magazine – a forward looking guide to the future of oil, gas and shipping activities in the Arctic and other ice-affected regions while keeping environmental protection and safety at the heart of operations.

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

www.frontierenergy.info SUMMER 2017 3

NEWS

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Construction of Kola Shipyard starts

IN NUMBERS

Russia’s largest independent natural gas producer Novatek has started building a Kola shipyard, where ice-resistant platforms for the Arctic LNG-2 plant will be constructed, says Novatek CEO Leonid Mikhelson. “We launched the Kola Shipyard project in late June. We have signed the ﬁrst land removal, blasting and quarrying contracts, Mikhelson said. Novatek will open several tenders for the construction of a dock and mooring area by late 2017. The Arctic LNG-2 natural gas liquefaction project includes the construction of a special dock for building reinforced concrete gravity platforms, drilling and production rigs for offshore Arctic projects, as well as other large marine facilities. Novatek is considering the possibility of attracting foreign partners for managing the Kola Shipyard. Mikhelson said that they are holding talks with three partners, including Italy’s Saipem. “We are thinking of attracting a partner to manage the shipyard. We are in talks with three companies, including Saipem and also the companies that are supplying modules for the Yamal LNG plant. The decision on creating a management company and choosing partners for it must be taken this year,” the Novatek CEO said. See Russia special report, from page 6

The oil price per barrel need for Statoil’s Johan Castberg ﬁeld in the Barents Sea to be proﬁtable.

$30

1,200 miles Lies Alaska’s remote town Barrow from the North Pole. It’s also known as a base for climate change study

Core samples from Statoil exploration drilling

Oil price impacts Norway’s northern ambition

Blåmann well yields gas in Barents Sea Statoil and exploration partners ENI of Italy and Petoro also of Norway drilled a gas discovery in the Blåmann well, between the Snøhvit and Goliat fields in the Barents Sea. Recoverable volumes are estimated at 2-3 billion standard cubic metres (BCM), approximately 10-20 million barrels of oil equivalent (BOE). The well was drilled in licence PL 849, awarded in 2016 in Norway’s Awards in Predefined Areas (APA) licensing round. “We were exploring for oil and this is not the result we were hoping for,” says Jez Averty, Statoil’s senior vice president for exploration in Norway and the UK. “However, this gas discovery has the potential to contribute additional resources to the Snøhvit project,” he notes. The discovery is located in the Hammerfest basin, approximately 21 kilometres southeast of the Snøhvit field. This is the second discovery in Statoil’s 2017 Barents Sea exploration campaign, following the Kayak oil discovery announced on 3 July.

Low oil prices mean drilling for oil and gas in an offshore zone between Russia and Norway will not bring the economic beneﬁts Oslo had predicted, according to a report commissioned by two green groups, Greenpeace and Nature and Youth, that are suing the Norwegian state over its plans. The Nordic country wants to open up new areas for exploration in the north of the country to offset declining oil production in the south. “If we assume more reasonable price expectations, consider costs

CO2 emissions in Norway, as well as discount future revenues and expense, the net beneﬁt falls from Nkr280 billion ($33.37 billion) – high scenario – and Nkr50 billion – low scenario – to Nkr41 billion and a loss of Nkr2 billion respectively,” said the report. The two groups are suing the Norwegian government over its latest oil licensing round, accusing it of infringing the Norwegian constitution by not protecting nature for future generations. The court case starts in November.

4 SUMMER 2017 www.frontierenergy.info

Arctia CEO Tero Vauraste elected AEC Chair The Arctic Economic Council (AEC) has elected Tero Vauraste, President and CEO of Arctia Ltd., as its new chairman until 2019. The AEC is an independent organization founded in 2014 that facilitates Arctic businessto-business activities and is responsible economic development. In addition to Mr. Vauraste, Finnish business and industry is represented in the AEC by Rauno Posio, Leader of the Visit Arctic Europe project at the Finnish Lapland Tourist Board, and Mr. Ingmar Haga, Vice President, Europe, at Agnico-Eagle Mines Ltd. There are Finnish business representatives also in the Working Groups of the AEC. arcticeconomiccouncil.com

Pictures: Statoil

West Hercules drilling a prospect in the Barents Sea

NEWS

22-31,000

Polar bears worldwide, estimated. Around 70% of the population live within Canada’s borders

130

1,000

Wells have already been drilled in the Barents Sea, with no serious incidents. Statoil is very active here, with drilling relatively cheap due to geology and shallower waters.

Number of passengers on luxury cruise liner Crystal Serenity, sailing in August/September on an Arctic cruise through the Northwest Passage

Russia’s share in the global LNG market. Output is set to grow when Novatek’s Arctic LNG-2 project begins LNG train construction in 2022 or 2023.

38 In March 2017, Arctic sea ice extent fell to its lowest recorded level since records began 38 years ago.

SOURCES: IUCN; Statoil; National Snow and Ice Data Centre (NSIDC) and NASA; Novatek.

Beaufort Sea plan for four exploration wells The U.S. Bureau of Ocean Energy Management has approved an oil and gas company’s plan to drill four exploration wells in federal areas of the Beaufort Sea in the US Arctic region. In July BOEM announced that it had conditionally approved a Beaufort Sea exploration plan (EP) it received from Eni US Operating Co. Inc. Eni US applied to BOEM for approval to drill four exploration wells from its existing Spy Island drill site, located in Alaska state waters.

The Nikaitchuq North Project’s wells would run down from Spy Island, then extend below the ocean ﬂoor to federal leases on the Outer Continental Shelf. Eni proposed exploratory drilling activities commencing in December 2017, and continuing into 2019. In a statement announcing the conditional approval, BOEM’s acting director, Walter Cruickshank, described Eni’s exploration plan as “a solid, well-considered plan,” and noted the existence of “vast oil and gas resources under the Beaufort Sea.”

Nova Scotia issues new call for exploration bids The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has issued a Call for Bids NS17-1 for Exploration Licences consisting of three parcels. Bids must be received by this coming December 14. The parcels are located in water depths of 50 to 450 metres, east of Cape Breton Island in a geological region known as the Sydney Basin. Only two wells have previously been drilled in the offshore portion of the Sydney Basin, and both wells encountered gas in shallow sandstone formations. CNSOPB has completed a geo-scientific interpretation that indicates the parcels have potential for both oil and gas. Active oil seeps are present onshore Cape Breton, which provides further evidence of the region’s hydrocarbon potential. The primary target formations in the Sydney Basin are analogous to the producing zones in the Stoney Creek oil field and McCully gas field onshore New Brunswick. These target formations have not yet been penetrated by any of the wells drilled in the Sydney Basin. www.callforbids.ca

British and Russian Arctic researchers seek common ground British and Russian researchers are working to develop the ‘Development of the UK-Russia Arctic Research and collaboration Network’, funded by the UK government’s Foreign & Commonwealth Ofﬁce and the UK Embassy in Russia and implemented by the UArctic Research ofﬁce (NArFU, Arkhangelsk). The project is aimed at creation and development networking tools to facilitate involvement of British and Russian institutions into the global Arctic research community and will focus on a variety of research themes with a strong focus on changing Arctic from the perspective of the Russia’s State Program on the Arctic Zone Development and the Adapting to Change UK policy towards the Arctic. The project organizers will run a number of seminars and workshops in Russia and UK in the course of the next year with a concluding conference in Arkhangelsk in spring 2018.

www.frontierenergy.info SUMMER 2017 5

RUSSIAN ARCTIC

Russia Arctic SET TO BOOM ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Projections for volumes along Russia’s Northern Sea Route (NSR) heat up as the first Yamal gas carrier tests the waters in a voyage to South Korea, while China and Russia reach agreement to exploit the ‘Ice Silk Road’

icebreakers, the newest of which is the 50 Let efore the recent G20 Summit in Pobedy, completed in 2007. The others, Hamburg, President Xi Jinping of Yamal, Sovetskiy Soyuz and Rossiya date China visited Russia to sign an respectively from 1993, 1990 and 1985. agreement dubbed ‘Ice Silk Road’, identifying In fact, three new icebreakers are under Russia’s Northern Sea route as key to future construction at United Shipbuilding Corp, cooperation between the two nations. with delivery now due one apiece in 2019, The agreement offered further proof of the 2020 and 2021. The LK-60Ya-class nuclearcritical role the NSR will play in Russia’s raw powered vessels will be able to cut through materials export drive eastward, and China is not the only leading Asian economy hoping to 2.8 m-thick ice. Two more vessels of the same type are already planned, as well as a LKbenefit. As the largest importer of liquefied 110Ya ‘Leader-class’ vessel to break winter ice natural gas in the world, Japan’s commitment up to 4.3 m, and 2.5 m-thick ice continuously to the massive Yamal LNG project was made at 10 knots. explicit in 2014, when the Japanese Bank for At a recent meeting, between Sovcomflot’s International Co-operation brokered a Frank and Prime Minister Dmitry Medvedev, US$400 million financing package to ensure Medvedev said that the Government will fulfil completion. all its obligations to support the pace of At the end of July, meanwhile, the world’s development of NSR infrastructure, including largest icebreaking tanker, Christophe de Margerie, departed from Norway’s icebreakers and navigational aids. The undertaking brings efforts by Russia’s Hammerfest LNG plant headed for South shipbuilding segment to meet its icebreaker Korea on its first commercial voyage via the commitments on time to the top of the agenda NSR. The Arc7 ice-class vessel is the first of at NEVA 2017, a 15 vessels envisaged for major conference Yamal LNG, with first held in September liftings expected in 2017 in St October. In 2016, NSR traffic grew Petersburg, the In 2016, NSR traffic by 35%, reaching biennial gathering grew by 35%, reaching 7.27 million tonnes of the international 7.27 million tonnes maritime overall. Sovcomflot community in chief executive Sergey Russia’s capital of Frank was quoted as the North. With reports emerging that the forecasting that the shipping company’s total delivery of Arktika will be delayed, new edge NSR oil shipments in 2018 would reach 12 million tons. Meanwhile, the Russian Ministry will be brought to a seminar on auxiliary of Transport forecasts NSR volumes by 2020 vessels and a special session to advance will reach 65 million tons per year. internationally sourced localisation of While the Yamal LNG carriers will operate shipbuilding and ship equipment unassisted July-December, converting overall manufacturing in the Russian Federation. NSR traffic projections into reality will rely on icebreaker support along a route where Sino-Finnish relations average ice thickness exceeds 1.6 m A recent visit by Russian President Vladimir December-June. Today, requirements are Putin to meet Finnish counterpart and mostly served by four Arktika-class nuclear President Sauli Niinistö points to 6 SUMMER 2017 www.frontierenergy.info

St Petersburg is a centre of Russia Arctic commerce and technology

strengthening bilateral relations which will inevitably have consequences for shipping and shipbuilding. July’s one-day summit included a focus on Finland’s chairmanship of the Arctic Council between 2017-2019 and its declared priorities of environmental protection, connectivity, meteorological cooperation and education. Business ties between the two countries are strong and nowhere is this more evident than in the maritime sector. USC’s Arctech Helsinki Shipyard is building a series of icebreakers and other Arctic class vessels for Russian interests. Notable deliveries from the Helsinki yard to Sovcomflot this year include the icebreaking standby vessel Stepan Makarov, handed over in June, and the icebreaking supply vessel Gennadiy Nevelskoy, the first of four sister vessels delivered in March. Finland will also play a major role in the replenishment of Russia’s fishing fleet. In early

RUSSIAN ARCTIC /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

August, Finnish group Wärtsilä secured a contract to provide the engines and propulsion package for two new fishing trawlers being built for Murmansk-based Nord Pilgrim Ltd. at the PJSC Vyborg shipyard in Russia. The scope of supply includes 8-cylinder Wärtsilä 32 main engines, gearboxes, controllable-pitch propellers, transverse thrusters, and the Wärtsilä ProTouch propulsion control system. Wärtsilä will support this contract through its service facilities in Murmansk. NEVA 2017 will acknowledge the significance of relations in a special RussianFinland Seminar for Cooperation in Shipbuilding on September 20. Meanwhile, the Russian Federation Ministry of Agriculture has recognised the significance of NEVA 2017 as a focus for fishing fleet revitalisation by offering official support to the St Petersburg event for the first time.

Rubles1.3 billion ($22.9 million) of federal money for the period 2018-22, to fund tax relief for LNG shipping investments, ease customs duties and accelerate depreciation where LNG equipment is concerned, and subsidise ship conversion work. Tax breaks are also available where land is used for LNGrelated activities, while the Ministry of Transport has also said that it will favour shipowners investing in LNG-powered ships when deciding on state carriage contracts. The government predicts that LNG marine fuel sales will reach 120,100 tonnes a year by 2022, and Gazprom is developing three coastal zones as centres for LNG bunkering – one each on the Baltic, Black Sea and in the Russian Far East. Meanwhile, The Ministry of Transport has designated the Republic of Tatarstan in the Volga District for a pilot a river LNG infrastructure scheme. In June 2017, Gazprom and Shell signed Heads of Agreement to set up a joint venture aiming to secure financing for and carry out the design, construction and operation of a new LNG plant near the seaport of Ust-Luga with a 10 million tonne capacity LNG storage plant and an option for expansion to 15 million tonnes. Plans are also progressing at Kaliningrad, where in November 2017 Hyundai Heavy Industries will complete a floating regasification unit ordered by Gazprom. Currently, the Kaliningrad Region receives natural gas via the Minsk-Kaliningrad pipeline, but the new Gazprom LNG import, storage and regasification terminal will receive up to 2.7 billion cu m of gas per year. Gazprom has also ordered a pre-investment feasibility study that will select bunkering ports as part of its plans to construct an LNG plant on the Black Sea. In early June, the Russian giant signed a framework agreement NEVA will also host the 2nd International with Austria’s OMV to develop a small-scale Conference ‘Renewing the Fishery and Fish coastal LNG production terminal in the Research Fleet’. region, in plans that include transportation, marketing and sales. Yamal infrastructure Senator Vyacheslav Shtyrov, who heads the While the Yamal project has dominated Arctic and Antarctic Council in the upper Russia’s LNG exports story in 2017, the chamber of the nation’s gas Russian parliament, infrastructure is rapidly recently said that developing, embedding The LK-60Ya-class nuclearannual cargo the energy source in deliveries along the future distribution at powered vessels will be able Northern Sea Route home and overseas. to cut through 2.8m-thick ice would reach 80 Direct state actions million tonnes by will see 14 LNG2030, “which powered vessels in means we should have a permanent sea service by 2022 (including tugboats, route”. The Senator said the task would bunkering ships, a new icebreaker and a require even more than the 14 icebreakers ferry), but more subtle promptings from the Ministry of Transport will have a deeper experts often suggest will be sufficient to keep impact. The Ministry has set aside Arctic routes running year-round. FE www.frontierenergy.info SUMMER 2017 7

RUSSIAN ARCTIC

NOVATEK

Yamal LNG is being constructed in demanding conditions

in numbers 12.8bn

barrels boe of proven hydrocarbon reserves

No 3

globally among publicly traded companies by proved natural gas reserves

66.1

bcm of natural gas produced in 2016

11% of total Russian natural gas production

No 6 globally among publicly traded companies by natural gas production volumes

20% of total natural gas delivered to the domestic market via the UGSS Source: Company records

Novatek plots

LNG GIANT

Italy’s Saipem. “We are thinking of attracting a partner to manage the shipyard. We are in talks with three companies, including Saipem and also the companies that are supplying modules for the Yamal LNG plant. “The decision on creating a management company and choosing partners for it must be taken this year,” he said.

LNG-2 takes shape The company has started building a Kola shipyard, where ice-resistant platforms for the 8 SUMMER 2017 www.frontierenergy.info

Arctic LNG-2 plant will be constructed, a major piece of development for the company. “We launched the Kola Shipyard project in late June. We have signed the first land removal, blasting and quarrying contracts,” says Leonid Mikhelson, Novatek CEO. The Novatek boss said it would announce several tenders for the construction of a dock and mooring area in the final part of 2017 and is hoping for a good response from contractors, particularly from Russian outfits. The Arctic LNG-2 natural gas liquefaction project includes the construction of a special dock for building reinforced concrete gravity platforms, drilling and production rigs for offshore Arctic projects, as well as other large marine facilities. Novatek is also weighing up its options of attracting foreign partners for managing the Kola Shipyard. Mikhelson says that it is holding talks with three partners, including

Around Rubles600 billion ($10 billion) will be invested in the Kola core development zone, says the Murmansk Region Governor Marina Kovtun. It’s a hugely strategic region for Russia. President Vladimir Putin said earlier this year: “As I mentioned at a meeting held in the Arctic, by 2050 about 30% of all hydrocarbons will be produced in the Arctic area. Some of our major projects are already being implemented there with Novatek building a plant, a company town, an airﬁeld, and a port in the Arctic zone. “The so-called non-regional powers are showing an active interest in this region. That is a good thing, and we are willing to cooperate with them, but we must ensure our priority interests”. Kovtun added: “The Kola core development zone concept comprises more than 30 investment projects worth a total of close to Rouble500 billion,” and will include

Novatek

Kola investment AO Novatek is one of the largest independent natural gas producers in Russia with an operating focus on the Yamal-Nenets Autonomous Region (YNAO) in Western Siberia. The YNAO is the most signiﬁcant gas producing region in Russia, accounting for approximately 80% of Russia’s natural gas production and 16% of global gas production. It’s also very active developing world-class infrastructure in the Kola Peninsula. The company’s stock is traded in London and is included on the FTSE4Good Series, an index designed to help investors integrate environmental, social and governance (ESG) factors into their investment decisions.

RUSSIAN ARCTIC

such companies as Novatek, Rosneft, Apatit, North-West Phosphorous Co and Kola Mining and Metallurgical Co.

Italian contractor

that will oversee the shipyard that is to be built on the Kola Peninsula in northwest Russia. Novatek is building the wharf, which is expected to cost Roubles80-90 billion ($1.3-$1.5 billion). The first dock is expected to be ready in 2019. The Utrenneye gas field will be the resource base for Arctic LNG 2. “We have defined production capacity at just over 30 bcm per year ... which is enough to compensate for the project’s costs,” Mikhelson says of the gas field. For now, Russia has just one operational LNG facility, run by Gazprom on the Pacific island of Sakhalin.

that are also participating in this project, will join the financing,” says company CEO Mikhelson. Novatek signed a $19 billion loan limit with various European and Russian banks, although the gas producer later asked to reduce this amount as there are several other entities which want to fund the project. “Capital investment in Yamal LNG amounts to $27 billion. But, considering the new solutions, we plan that a 30% reduction [of costs] will take place. The contracts were signed for Yamal LNG worth about Rouble600 billion. This figure will be sharply increased,” Mikhelson adds. “We made a decision to change the design (on LNG-2). The LNG train will be based on gravitational platforms. These platforms, as well as the liquefaction trains, will be constructed in a normal factory conditions. We plan to launch the first stage of Kolskaya shipyard in 2019 and start the construction,” says Mikhelson. The chairman added that the NIPIGAS engineering centre responsible for the design of the Arctic-2 project, will finish its work by the end of 2018. “Last month, we signed an agreement for the project stage. The project stage will be finished by the end of next year. At the earlier stages, we invite all Russian manufacturers and suppliers available. We have held a big workshop, over 50 representatives from factories and contractors were in attendance,” Mikhelson says.

Italy’s giant contractor Saipem is likely to get a senior sub-contractor role on LNG-2, according to local reports. Novatek, Russia’s largest non-state LNG producer, is aiming to produce as much LNG as the world’s biggest exporter Qatar and is drawing up plans to build a second plant, known as Arctic LNG 2, on the Gydan LNG shipping Peninsula that juts into the Kara Sea. After loading its cargo at the Snøhvit LNG Production is due to start in 2022-23. export terminal in Norway earlier this Saipem is expected to be selected to year, in which Total has an 18.4% build offshore platforms for the facility, interest, the super LNG tanker according to local reports. Novatek Christophe de Margerie successfully Several European banks will join the claims it can cut construction costs for navigated the Northern Sea Route to financing of Russia’s Yamal LNG liquefied the Arctic LNG-2 liquefied natural gas Boryeong in South Korea, where it natural gas project over the coming plant by 30% compared to the $27 delivered a cargo for Total Gas & Power. billion it took to build the Yamal LNG It was the first unescorted merchant months, alongside Novatek. LNG vessel ever to take this route, plant, a similar corporate project. The which makes it possible to reach Asia via company intends to make an investment decision in 2019, and the first stage of the Bering Strait in 15 days versus 30 the Arctic LNG-2 plant is to be launched in Novatek is due to start producing LNG at days via the Suez Canal. late 2022 or early 2023. its Yamal LNG project in the fourth quarter. Such tankers are now able to efficiently “It is planned that Saipem will take part as That project will eventually produce around transport large quantities of LNG year-round, a sub-contractor to design the gravity-based 16.5 million tonnes of LNG per year. without requiring escort icebreakers during units. That’s where they have expertise and Mikhelson says Novatek was in talks with the period from July to November. The experience,” says Boris Lim, head of a number of companies to join Arctic LNG 2, Christophe de Margerie is the first of a total NIPIGAZ, an engineering firm on the project including his current partners in Yamal LNG of 15 planned LNG carriers that will be which is co-owned by France’s Total, and gradually deployed. and a Novatek partner, reported Reuters. They have been specially designed for The gravity-based units will sit on the China’s CNPC and the Silk Road Fund. Yamal LNG, a flagship Total project (20%) to seabed some 40 km (24.85 miles) from the onshore gas deposit and will produce and ship Yamal financing develop the giant onshore South Tambey gas LNG, Leonid Mikhelson, Novatek’s CEO, and condensate field with the construction of Several European banks will join the says. a liquefaction plant. Ultimately, close to financing of Russia’s Yamal LNG liquefied Mikhelson says that Novatek was also in 16.5 million tons of LNG a year will transit natural gas project over the coming months, talks with Saipem to possibly give the Italian through the port of Sabetta, built specifically alongside Novatek. firm a partner role in managing the company “A number of European banks, of countries for the project. FE 10 SUMMER 2017 www.frontierenergy.info

Novatek

LNG shipments will soon be a common sight along the Northern Sea Route

ICE NAVIGATION

Offshore vessel docked at St John’s, Newfoundland and Labrador

Innovate and COLLABORATE

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

anadian tech ﬁrm Rutter Inc. has completed a collaborative initiative with Statoil Canada Ltd. and the InnovateNL programme organised by the Provincial Government of Newfoundland and Labrador to improve offshore oil and gas operations in harsh environments. The work focused on ice conditions and resulted in the development of new remote sensing technology used in the automatic detection and tracking of ice. The resulting ice analysis features integrated into Rutter’s sigma S6 systems are capable of providing automatic

identiﬁcation, outlining, and drift tracking of ice ﬂoes; pans; ridges; icebergs embedded in pack ice; and open water leads.

Large step forward “The technology that was developed has resulted in a large step forward in ice management capabilities,” says Fraser Edison, President and CEO of Rutter. “The additions to the sigma S6 system will allow the automatic identiﬁcation of ice characteristics leading to improved operational safety and efﬁciency for

Rutter teams up with Crystal for Arctic cruise Rutter Inc is working with US-headquartered Crystal Cruises after the company choose its sigma S6 Small Target Surveillance (STS) and Ice Navigator systems for its inaugural Arctic summer cruise in 2016 of the liner Crystal Serenity. The liner’s initial voyage was the world’s first by a luxury vessel to sail from the Pacific to the Atlantic Ocean via the Canadian Northwest Passage. The sigma S6 Small Target Surveillance system was installed on the Crystal Serenity and provide enhanced small target detection

of first-year and multi-year sea ice as well as other floating hazards to safe navigation. During 2017, the company released several new upgrade features to its ice radar system, including the ability to detect icebergs embedded in pack ice, identification and outlining of open water leads within an ice floe, and outlining and drift tracking of ice floes and pans. “The selection of the sigma S6 STS system demonstrates Crystal Cruises’ commitment to ensure the safety of

operations in ice-infested areas.” The technology developed by Rutter was recently ﬁeld-tested during trials performed by Statoil along with Viking Supply Ships in the Baltic Sea. InnovateNL is organised through the Department of Tourism, Culture, Industry and Innovation and delivers provincial innovation programmes and services to clients in a seamless and more efﬁcient manner. The agency also supports government’s approach to working smarter and more collaboratively. FE

passengers,” said Rutter. The sigma S6 Ice Navigator is a radar system used for both vessel navigation and sea ice management programmes. During the voyage, the Crystal Serenity was accompanied by an escort vessel carrying additional safety and environmental protection equipment, to further ensure safe passage of the cruise ship. “Rutter’s sigma S6 and WaMoS enhanced marine safety, security and environmental monitoring radar systems are used globally, with extensive use for ships operating in the Arctic and Antarctic”, says Fraser Edison, chief executive of Rutter.

www.frontierenergy.info SUMMER 2017 11

ARCTIC VESSELS

Vessel trafﬁc is set to increase in Arctic waters

Rise of POLAR SHIPPING C

laim and counter-claim swirl around the thorny issue of shipping and climate change, with protagonists sometimes ignoring the impact that the relentless reduction of ice coverage is having around the North Pole. However, as this environmental change plays out, the volume of Arctic shipping will steadily increase across the various seas that surround the top of the world. It is becoming clear that interest in Arctic shipping has always been there, as a host of countries – including Russia, China, Iceland, Canada and the United States – continue to make preparations to turn the rapidly warming Arctic into a busy global shipping route. In a paper by Ed Struzik, published by Yale University’s School of Forestry and Environmental Studies, he cites Frigg Jørgensen, executive director of the Association of Arctic Expedition Cruise Operators, who expects cruise trafﬁc will also grow in Iceland, Norway and Greenland, and soon. Struzik adds, at the other end of the earth, in Antarctica, more than 36,000 tourists visited the continent in 2014-2015, nearly all on cruiseships. Some vessels have occasionally run aground or sunk in Antarctica, though so far without major oil spills or other serious environmental damage caused. “In addition to oil spills and impacts on marine mammals, scientists and environmentalists are concerned that the black carbon emitted by combustion of the heavy oil used by big ships will accelerate sea ice retreat, as the dark soot settles on ice and snow and absorbs heat,” says Struzik. “The Chinese are taking the long view and 12 SUMMER 2017 www.frontierenergy.info

they’re building ships, icebreakers, and ports to capitalise on the future,” which may not be as far off as many think. “There was a ﬂash of enthusiasm when shipping levels reached a peak in 2013, but they dropped from there because of low oil prices, as well as insurance and safety considerations,” says Hugh Stephens, an executive fellow at the University of Calgary’s School of Public Policy. That enthusiasm is now growing again.

Russia strategy Russia has created a single enterprise to oversee the country’s expanding economic activities in the Arctic Ocean. And in addition to longstanding Arctic ports such as Murmansk, Russia is building new Arctic shipping facilities, such as a liquid natural gas port at Sabetta on the Yamal Peninsula. Russia now has 11 Arctic ports of varying sizes. While in China, the government is taking the long view and constructing specialist icebreakers and ports to capitalise on the future, which is approaching fast. Meanwhile Iceland, in an attempt to capitalise on the trafﬁc that might come to the Polar Regions, is completing a two-year feasibility study for a deepwater port at Finnafjörður on the northeastern tip of the country. And in the U.S., the state of Maine is working on plans to transform Portland into an Arctic hub. The Arctic is developing a pace few envisioned just a decade ago, and many of the regions littoral countries and their companies are getting deeply involved. FE

Thales supports Canada Arctic shipping Canada has awarded Frenchheadquartered Thales in-service support (ISS) reﬁt, repair, maintenance and training to both Arctic and Offshore Patrol Ships (AOPS) and Joint Support Ships (JSS). Known as AJISS, the contract includes an initial service period of eight years for up to C$800 million (€540 million), with options to extend services up to 35 years, for a total value of C$5.2 billion CAD (€3.5 billion), making it the largest ISS contract in Canadian history. Thales is prime contractor for ISS for both the Arctic Offshore Patrol Ships and the Joint Support Ships, with the estimated value of the 35-year contract being C$5.2 billion (€3.5 billion). This contract will generate economic beneﬁt of more than C$250 million CAD (€170 million) in research and development. This contract builds on Thales’s experience in providing in-service support to every major Royal Canadian Navy (RCN) platform for the past 50 years, including ISS for systems onboard Victoria-class submarines, Kingstonclass maritime coastal defence vessels, Iroquois-class destroyers and Halifaxclass frigates.

Image: Red Box Energy Services

ARCTIC VESSELS

CANADA-BASED GLOBAL POLAR EXPLORER ONE OCEAN EXPEDITIONS (OOE) has purchased RCGS Resolute (pictured) and refurbished it to ice-class. Named after a British Royal Navy Arctic exploration vessel, and the Inuit town of Resolute in Canada’s Nunavut Territory, the vessel will arrive in Canada in November 2018 for its inaugural polar voyage. The announcement of Resolute’s arrival was

made in Sydney, Nova Scotia, where Cape Breton-born Andrew Prossin, OOE founder and CEO, said the company will use the new Sydney pier to refuel and provision ships. “With the building of a second berth in Sydney Harbour, I see no reason why Sydney can’t be Canada’s Arctic gateway,” said Prossin, who currently spends C$5-6 million per year provisioning his ﬂeet in Halifax.

www.frontierenergy.info SUMMER 2017 13

ARCTIC VESSELS

HEAVY LIFT After successfully commissioning two Arctic class marine heavy transport module carriers for Russia’s multi-billion dollar Yamal LNG project, startup company Red Box Energy Services can claim the ‘impossible’ while defying the industry consensus that this particular project couldn’t be delivered on time. Successfully completing the project on time and on budget silenced those doubters 14 SUMMER 2017 www.frontierenergy.info

ull of maritime history and tradition, the Netherlands is the global centre of maritime heavy lift expertise. Its naval architects have the technical knowledge to manage complex issues such as stability analysis, and decades of practical experience has given its engineers, executives and vessel operators a leading edge in project management. “We call it human software,” says Philip Adkins, chief executive of Red Box Energy Services, the latest heavy lift company to enter this highly competitive market. Red Box’s current ﬂeet is focused on semi-submersible vessels and two newbuilds with PC-3 classed for year-round work including the harsh, cold dark months of an Arctic winter. “It’s the experience and training of our ofﬁcers and crew that allow us to take on such projects most other companies see as impossible,” says Adkins. Rotterdam-based Red Box takes a “demand driven approach to our orderbook”, says Adkins. “We design and build vessels to meet our customers’ needs, and train our staff to

deliver those needs, within their budgets.” He recalls the reaction from the heavy lift shipping establishment when Yamal LNG tendered for a highly complex heavy lift contract to move 150 modules, equivalent to 60% of the project. The market consensus was that this was “an impossible project”. The complicated, time-constrained task set before Red Box was to design, construct and commission two Polar Code class 3 vessels capable of year-round operations in the some of the world’s harshest environmental conditions. Russian-led Yamal LNG, Yamgaz, awarded Red Box the contract for the construction and management of two specialised PC-3 Ice-Class deck carriers for the project with a minimum time charter of four years and a total contract value of $320 million, starting in January and March of 2016. Designing and building two ice-class heavy lift vessels in under two years capable of operating in temperatures of minus 40°C is a challenge few companies would attempt. Also, with many of the world’s largest LNG

ARCTIC VESSELS

MAIN PARTICULARS: AUDAX & PUGNAX Concept and Basic Design 2014 Arctic Module Carrier Built: Guangzhou Shipyard International Company Limited Owner’s name: ZPMC – Red Box Energy Services

Red Box Services Pugnax en route to Yamal Gaz loaded with modules

A cargo laden Audax carving through ice en route to Yamal Gaz

RED BOX Arctic Contract – YAMAL LNG Yamgaz awarded Red Box a contract for the construction and management of two specialised PC-3 Ice-Classed deck carriers for the Yamal Project with a minimum time charter of four years and a total contract value of $320 million starting in January and March of 2016. Red Box also signed a time charter contract with Yamgaz for two 50,000 dwt semisubmersible vessels (Red Zed I and Red Zed II) with a minimum time charter of two years and an estimated contract value of $90 million starting in August of 2015. Both vessels were managed by Red Box under a bareboat charter agreement. Yamgaz awarded Red Box a one-year time charter contract for Hua Yang Long with an estimated contract value of $24 million, starting in May 2016. The Hua Yang Long, a 50,000 dwt semi-submersible vessel, was chartered back-to-back from Guangzhou Salvage.

Main dimensions: Length: 206.3 m Breadth: 43.0 m Draught: 7.5 m Propulsion: 2 × 12 MW shaftlines Icebreaking capability: 3 knots in 1.5 m level ice Ice class: Polar Class 3 Two vessels were built by Guangzhou Shipyard International Company Limited (China) with delivery in 2016: * Sailing in ice of 1.5 m thick; vessel speed in ice: 2 knts • Winterized up to minus 40° Celsius * Required Ice Class Notation PC-3 Module transportation capability * Capable to load, transport and discharge two modules, each weighing 10,000 tonnes * An obstacle-free deck area for unrestricted side- and stern load-outs.

projects developed using modularisation techniques, specialist heavy lift vessels were needed to deliver these logistical needs.

Yamal challenges Yamal is a liqueﬁed natural gas project located deep in the Russian Arctic, a region that is ice-bound for seven to nine months during the year and where the sun remains beneath the horizon for three months at a time. During the winter, work is carried out by spotlight in freezing temperatures. Red Box worked closely with Yamal project partners including Russia’s Novatek, China’s CNPC, Total of France, and Silk Road Fund. More than 200 wells were drilled for the project and three liquefaction trains constructed, each of which offers an annual capacity of 5.5 million tonnes. To ensure its stability, the plant will be supported by tens of thousands of piles driven some 20 m into the permafrost (the thick layer of frozen subsoil whose surface only thaws in summer months). This is the ﬁrst time this technique was used on such a large scale. Novatek signed an agreement with contracting companies Technip, Linde and the Russian Research and Design Institute for Gas Processing (NIPIGas) to design and develop gravity-based LNG facilities the project. The company also bought Linde’s licence for gas liquefaction technology for the plant. Adkins says Red Box worked closely with Total and www.frontierenergy.info SUMMER 2017 15

ARCTIC VESSELS

Red Box chief technical ofﬁcer Rinse van Lievenoogen

Loading Pugnax with LNG modules for Yamal Gaz

Technip on design of the vessels, which were constructed by Guangzhou Shipyard International (GSI) in China.

Volatility & experience Volatile and relatively low prevailing oil prices have put similarly large Arctic development projects on hold for the time being, as Adkins seeks opportunities in the Gulf of Mexico, offshore East Africa and north America. However, he remains optimistic that the Arctic will yield interesting, complex and challenging projects in the future. “It’s just the beginning for this area, and although Russia’s security and national economy is dependent on its energy sector,” the short-term future is uncertain. But we’re here for the long term, says Adkins. Red Box was created after a hostile takeover of the Fairstar Heavy Transport company by Dockwise, the Netherlands-based heavy-lift specialists. A group of ex-Fairstar executives created Red Box, as an innovative heavy lift company specialising in ‘impossible’ projects such as facilitating the construction Yamgaz. Between them, the engineers,

designers and executives contributed ﬁrst hand experience of worldclass energy logistics projects including Gorgon LNG and Ichthys LNG in Australia, Tombua Landana offshore Angola, and Golden Eagle in the North Sea. The team had also moved cargoes such as jack-up rigs, cranes and various semisubmersible cargoes. The in-house design team at Red Box includes Chief Technical Ofﬁcer Rinse van Lievenoogen. Whilst working at Fairstar as Senior Engineer, he was responsible for transportation analysis work ranging from stability calculations, vessel motions and mooring analysis.

Audax and Pugnax Red Box ordered two PC-3 ice class marine heavy transport module carriers named Audax and Pugnax to service $27bn Yamal LNG project construction logistics and construction to timetable. In January 2016, the ﬁrst 25,000 dwt PC-3 Module Carrier Audax was delivered and was followed three months later by its sister vessel Pugnax. Red Box’s van Lievenoogen was

Philip Adkins, ceo Red Box Energy Services Red Box ceo Philip Adkins

A graduate of US-based Columbia and Harvard Universities, Philip Adkins is chief executive at Red Box Energy Services, boosting his reputation for managing marine heavy transport issues and projects since he successfully established Fairstar Heavy Transport and then Red Box as suppliers of module transportation for LNG infrastructure projects. He was extensively involved in both the Chevron EGTL Project in Nigeria as well as the Gorgon and Ichthys LNG Projects in Australia. Red Box’s contract with Russia’s Yamgaz involves supplying four marine heavy transport vessels, including two Polar Class Three (PC-3) module carriers (Audax and Pugnax) that provided year-round transportation of modules and critical supplies to the newly constructed Sabetta Port on the remote Yamal peninsular. The vessels were built at the Guangzhou Shipyard International Ship Yard in Longxue, China.

16 SUMMER 2017 www.frontierenergy.info

closely involved in the design and construction of the vessels. Both were imagined, built and delivered in less than 22 months, on time, within specification and within budget. van Lievenoogen and his team designed the vessels to handle year-round navigation in Arctic waters, sailing in ice 1.5 m thick at up to 2 knots. Other design specs include being winterised up to -40°C, and meeting of ice-class ARC-7 notation requirements. The work on the PC-3 module carriers won the Red Box team the Arctic Shipping Innovation Award 2017. Logistics presented a major challenge to the project, with offshore and onshore workers facing temperatures as low as -40deg C. To bring in equipment and staff, the port of Sabetta and an airport were constructed. Over 150 modules representing 450,000 metric tonnes were transported from Asia by some 20 vessels. Red Box vessels were responsible for bringing in 60% of the total transportation demand for the vast LNG project. The port also serves to export the LNG. As the world’s first polar class heavy transport deck carrier capable of breaking ice up to 1.5 m thick, the Audax can carry two large 10,000-tonne modules simultaneously and travel at a speed of 2 knots, or about 3.8 km/h, through the ice. The construction of the Yamal LNG project basically depended on Audax and sister vessel Pugnax. Both of them serve by transporting the modules for the project and are the only two transport deck carriers in the world capable of bringing cargo into the Arctic region around the year. Powered by Siemens’ advanced electric propulsion system that optimises energy efficiency, the vessels played a crucial role in the construction of this LNG project. The successful construction and deployment of Audax and Pugnax in record time and for such a harsh environment highlights a strong and intriguing future for heavy lift in the Arctic region, and for Red Box. FE

EE TS RAP IPPI DIN ERE HIBI IBIT R L R H G F I H O S O N O U X H P N O B R E , S A C E GY OFF SHIP E FO EVA N& , , C N O EAN I G G & OC E ENER N • C T N N E I I I Y O R B P D H I E www.transtec-neva.com OR TS & RAP EXH SHIP BUIL ONF R G P C A R I FSH O O HOR V H O & P N S E F S , F A N N , Y E F E O G • G I C IN G, O IBIT & OC E ENER PHY REN N I IPP H A E S HIPP D H X F R T L S E N I G R R U O O O O C EVA FOR IPB Y, P EAN FSH H E G F C S C ON & PHY • N R O , O N TION E , G I E & N G N B R I I E S N E A I P H T R ONF ORE UILD OR SHIP POR A EX ANOG C H NOG , B V S Y & P E F I G CE , OF , SH Y•N TION CE F NER O G I G H E N N B N & P I I I E E R ENE RA TS XH ER ILD IPP G E F R E U H N O O R B S A P N O HIP NEV & CO FOR GY, FSH CEA • F R N O E G, S Y E O G, S O C & I , H N N N T I P E G I S E P A T N B R E I I P R E SHI OGR EXH HOR UILD , PO N ONF R S ON Y B A A F O C V P G E F I F E R C & O H E N E O S • ING, ENC S& TION NG, E EN I I D R T R PHY B L P E R I I O PHY P F O I H U H A N P X B H S R O , E S P F I G C GY , OF EVA , SH FOR ANO N& G 7ERGY, N G E E O NER N 1 I N • I C C I T 0 I D O Y P N 2 L B P E H I I U RRE EN HI TS & BEO FER RAP EXH R N G HIPB E FOR S A O O O M V P H PBU C N I E , E S A H & Y N F T E C S F G • N EN EIP S G, O NER ING, & OC ITIO PHY E N P B 2 A FER S I REN P 2 E T R I D E H R L R H G F X I O S O O H , 19 IPBU P AE CON EAN FOR FFSS & A H GY, C NEV I O S E R N O , , C E NEV O S I G G & N N • T N N E E I U S I I Y T , RSHIPP CONFER A EXHIB GRAPH ORE UILDRGR POR H B RTS S P I F O O U V H F O & P N E F B S O , SENCE CEA TION RGY Y•N ING, TER ING, I O E H P B I & N P P R I E H T. PE DING XH FE RA TS E S L E N I G R R R U O O A O O SN & C FO Y, P NEV EAN FSH HIPB G F C • S CE O R O , O I N Y E , G T E H & I N G N R P I B E S N A HI NFE ILDI ORT HIPP O ORE OGR U P S AE C H N , B V S R A Y & P E F I O E G N F N F R O SH OC ITIO HY • ENE NCE NG NG

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ARCTIC VESSELS

EU seeks shipping SAFETY BOOST ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

new €6.5m three-year research project, funded by the EU’s Horizon 2020 programme, has been launched to address safety and efficiency in Arctic ship operations. SEDNA will develop a novel risk-based approach to Arctic navigation, ship design and maritime operations. Recent years have seen a rapid increase in shipping operations in Arctic regions, as ice cover has reduced due to global warming. While this offers the potential to save significantly on voyage times, the harsh environment poses new challenges to seafarers and vessels: extreme temperatures, icing of vital equipment, remoteness, fast-changing sea ice covers and a lack of search and rescue infrastructure are very real risks to passengers and crew. These challenges are exacerbated by a lack of accurate sea ice forecasting, an absence of ship bridges specifically designed for the Arctic and – quite frequently – a lack of Arctic-specific training for the navigation crew.

Design and layout

The safety of Arctic shipping is being researched, to boost safety for all Arctic vessels including perhaps these from the US Coast Guard

will be tested on a real ice-going vessel. SEDNA is addressing these problems in a variety of ways. Firstly, it will develop the Thirdly, SEDNA will develop a risk-based ‘Safe Arctic Bridge’, a human-centred design framework for ship safety, including operational environment for ice-going vessels. the definition of hazard scenarios, their Its design and layout will focus on the likelihood and their expected consequences. In navigational requirements of the Arctic, particular, this will take into account ice loads and their effects on ships. This aspect of the namely ice, weather and a lack of chart data. project will be based on the work of the LRF The Safe Arctic Bridge will use augmented Centre of Excellence for Arctic Shipping and reality to improve situational awareness and Operations and is expected to contribute to to support the crew in their decision-making. It will be developed and tested in a virtual future development of the International bridge prototyping Maritime system. Organization’s Polar Secondly, SEDNA Code. will develop anti-icing In addition, There has been a rapid increase in solutions for vessels’ SEDNA will shipping across the Arctic regions superstructures. The integrate dynamic build-up of ice on a meteorological and ship can pose a oceanographic data serious risk to safety, as it affects stability and with real-time ice movement predictions and ship performance data to allow for an may render important equipment (like optimisation of Arctic voyages. In particular, antennas, hatches and life boat davits) this will lead to the creation of new regional unusable. To prevent this, SEDNA will mimic weather and sea ice probability forecast the excellent water-repellent properties of products and ship-based ice monitoring penguins’ feathers with a combination of a special surface texture and an oil-based systems. These solutions will provide routing coating. In addition, energy-efficient electrodecision support and help to optimise Arctic thermal systems will be used. These solutions voyages in terms of safety and fuel efficiency. 18 SUMMER 2017 www.frontierenergy.info

Workshop proposal Lastly, SEDNA will propose a CEN Workshop Agreement on a process to systematically address safety during bunkering of methanol as a marine fuel. This will include technical provisions and an assessment of safety risks for three bunkering scenarios: truck to ship, shore to ship and ship to ship. A particular focus is on the use of low ﬂash point fuels in Arctic shipping operations. SEDNA started in June 2017 and will run for three years. The project is led by BMT Group of the UK and brings together 13 partners from six different countries, including China. The partners are University College London (UK), Chalmers University of Technology (Sweden), Atkitektur – og designhøgskolen i Oslo (Norway), University of Southampton (UK), MET Ofﬁce (UK), Cork Institute of Technology (Ireland), Aalto University (Finland), Lloyd’s Register EMEA (UK), Aker Arctic Technology Inc. (Finland), Stena Rederi AB (Sweden), Dalian University of Technology (China) and Harbin Engineering University (China). FE https://sedna-project.eu/

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CRUSHING ICE to save platforms ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Niek Heijkoop is collaborating with other researchers, including several from the Norwegian University of Science and Technology (NTNU), to test ice that has cyclic – or regular – stresses applied to it. Heavy clothing and boots are de rigueur to tolerate the specially designed cold room lab. But why on earth do we need to know how ice responds when subjected to cyclic loadings over time?

t’s been a warm winter on Svalbard, the Norwegian archipelago between mainland Norway and the North Pole, this year. But this doesn’t apply to the laboratory where Niek Heijkoop works. There it’s a stable -10° Celsius The goal is to ﬁgure out how ice affects built structures, and vice versa, under the frequently very harsh conditions in the Arctic. “I hope my results can be used in computer models,” says Niek Heijkoop, who is a master’s student at the University Centre in Svalbard (UNIS) and TU Delft in the Netherlands. He has chosen to spend several months at a time in the UNIS laboratory at roughly 78 degrees north in Longyearbyen. Heijkoop is collaborating with other researchers, including several from NTNU, to test ice that has cyclic – or regular – stresses applied to it. Heavy clothing and boots are de rigueur to tolerate the specially designed cold room lab. But why on earth do we need to know how ice responds when subjected to cyclic loadings over time?

and ﬂoating installations under different conditions is paramount for conducting this kind of exploration. Ice can surround a stable platform in the far north for much of the year. A platform like this will move, affect the ice and in turn be affected by it. Relatively steady wave action will cause these movements to repeat themselves again and again. Therefore, the researchers want to study how such repetitive waves affect ice. The pressure that arises in the ice from these movements can be simulated in the lab at UNIS.

Make their own ice “It’s basic physics,” says Heijkoop Sea ice strength is sensitive to how fast loads are applied. This is also the case when applying cyclic stresses to the ice. Waves, for example, are a natural load for

sea ice that repeats cyclically and with a speciﬁc frequency. It is important to examine the strength properties of sea ice for such loads. Structures can also move with a particular frequency as a result of the ice being forced and crushed against the structure. In this case it helps to understand how the cyclical load applied from the structure affects the ice strength. The challenge is to obtain results that can be compared. This means that the ice samples that are subjected to pressure must be similar enough so that the results from different tests can provide real answers. Going outdoors to fetch a random block of ice won’t cut it. So the researchers make their own ice in the Svalbard lab, in order for it to be as consistent as possible from test to test.

Making exploration safer

20 SUMMER 2017 www.frontierenergy.info

Long-term work

It’s basic physics, but it’s also instrumental in understanding conditions in the Arctic, says Niek Heijkoop who subjects ice to cyclical loads to see how it reacts.

Heijkoop isn’t exactly starting at zero. His advisors include associate professor Jeroen Hoving from TU Delft, and postdoc Torodd Skjerve Nord from SFI Sustainable Arctic Marine and Coastal Technology (SAMCoT) at NTNU. Nord is also an adjunct and associate professor at UNIS. “Heijkoop’s work is the start of a long-term effort to better understand how ice is affected by cyclic loading. This has already been investigated in part, but not enough. For example, we know a lot about how ice behaves under cyclic loading at -10° Celsius, but we know very little about what happens when the temperature rises to -5°,” said Nord.

Photos: Anne Sliper Midling, NTNU

It’s not exactly a secret that the temperature on our planet has gone up in recent years. This creates uneasiness and many questions. But some people also see opportunities in the situation. Wind turbines in the Baltic Sea are a present-day example. More ships may use northern waters as they become ice-free in the future. And other people see the milder weather and imagine being able to look for oil and gas, minerals and other resources in the north. That scenario would require permanent installations, which will need to withstand the sometimes rather harsh conditions to be found a few degrees south of the North Pole. Understanding how ice reacts around ﬁxed

FUTURE PROOFING

Heijkoop’s testing involves huge practical difﬁculties, and we have to incorporate procedures so that the “life course” of each ice sample is as similar as possible.

North latitude. Niek Heijkoop’s laboratory is at UNIS, the University Centre in Svalbard.

In a larger context, the researchers want to understand whether this could have an impact on how they describe ice in numerical models that calculate loads and response in structures NTNU works closely with TU Delft on

arctic research and also has a long tradition of cooperation with UNIS. The University commits signiﬁcant resources each year to relevant research in the Arctic. “Heijkoop’s testing involves huge practical

difﬁculties, and we have to incorporate procedures so that the “life course” of each ice sample is as similar as possible,” says Nord. “We were lucky and got help from the research group that has studied this the most of any group anywhere. David M. Cole, from the Cold Regions Research and Engineering Laboratory of the US Army Corps of Engineers, visited us and helped us solve a number of challenges related to this testing,” he adds. The results of the research will determine how they will move ahead with their research. “We’ll let Niek present the results of his master’s thesis this summer and then consider what further resources are needed. Ice on structures still has several unresolved aspects, so we have to prioritize with TU Delft to establish relevant research goals. We’re noticing that the relevance of research on ice loads has increased in relation to the development of offshore wind farms in the Baltic Sea,” says Nord. FE Reprinted courtesy of Steinar Brandslet and Anne Sliper Midling of Geminiresearchnews.com

Prepping for Arctic decommissioning Conditions throughout the Arctic present challenges in every phase of operation from geophysical data acquisition, exploration and appraisal drilling, construction and commissioning, to production and ﬁnal decommissioning, says the International Association of Oil & Gas Producers. Due to these challenges, the period to ﬁrst production may be longer than in less demanding environments. This timeline may be shortened as technology is developed. With additional experience will come even greater competence in performance and environmental protection. Through the Arctic Council and its group Protection of the Arctic Marine Environment, a series of guidelines has been published which are “intended to be of use to the Arctic nations for offshore oil and gas activities during

planning, exploration, development, production and decommissioning to help secure common policy and practices. The Guidelines are intended to deﬁne a set of recommended practices and outline strategic actions for consideration by those responsible for regulation of offshore oil and gas activities … “While recognising the nonbinding nature of these Guidelines, they are intended to encourage the highest standards currently available. They are not intended to prevent States from setting equivalent or stricter standards, where appropriate.” Elsewhere, Canadian company RPS is the project lead on Arctic oil and gas decommissioning project in the country’s Arctic region. The work includes the design and execution of a ﬁeld programme with sampling and chemical and biological analysis of

material associate with the four 5,000 tonne caisson structures. The structures were originally built to protect an artificial drilling island and have been resting on the seafloor at a temporary location since abandonment in 1984. The fieldwork was completed in late 2016 and involved a team of seven professionals with equipment mobilised from Canada and the USA. RPS work on the project is ongoing with key deliverables being recommendations on disposal options. Decommissioning will be a special focus at SPE Offshore Europe 2017 with a range of expert speakers announced as part of the plenary and new Decommissioning Zone technical programme. www.offshore-europe.co.uk/ Decommissioning-Zone

www.frontierenergy.info SUMMER 2017 21

ARCTIC INSURANCE

Vessels following icebreakers are susceptible to damage

WARMING CLIMATE heats up insurance debate

remoteness, lack of safe shelter, lack of response infrastructure and means of As Arctic sea ice declines due to global warming, more communication are major challenges. In vessels, ranging from cargo carriers to cruise liners, are taking addition, most crews will not be familiar with the route or conditions. Data is limited, tourists to waters in the far north, leading to greater risks of though Gard’s experience seems to indicate maritime incidents in that region that most hull damage in the Arctic is due to groundings and hitting ice floes with poor operations such as offshore activities, fisheries, visibility being an important co-factor. That s levels of Arctic sea ice retreat specialised cruises and research. Insurance said, more ice-free open waters will probably increasing numbers of vessels, challenges will arise when less experienced not reduce the overall risks as more ranging from seismic explorers and players enter the market. If Arctic trade is to inexperienced operators are likely to use cruise liners to support vessels, will increase grow, it needs to be made as safe as possible; higher speeds in the area. the burden on search and rescue operations Other research has indicated that and ultimately insurers. Which is why the emergency response infrastructure needs approximately 10% of ice damage to ships companies such as the Protection and to be developed, and resource sharing and occurs when navigating independently; 60% of Indemnity (P&I) Club Gard AS, based in cooperation between states need to improve. damage occurs when following an icebreaker; Norway and which is the second largest marine insurer in the world, is getting involved Standards and ships and the remaining 30% results from towing, grounding and other operations in ice. at the early stages, wrote Gard for UArctic. Proportionate regulation of standards and Historically, the marine insurance industry is Marine insurance allows shipowners and ships in Arctic trade is long overdue, believes the generally unwilling to carriers generally to take on the risk of trading insurer and suggests provide information on Arctic routes. Of particular importance for that this year’s 60% of damage occurs when on risk coverage Arctic shipping is Protection and Indemnity implementation of the based on hypothetical (P&I) insurance, offered through P&I Clubs. International Maritime following an icebreaker or theoretical P&I covers a wide range of liabilities including Organisation’s Polar questions. As a result, personal injury to crew, passengers and others Code is a major step insurance provision often tends to be on a caseon board, cargo loss and damage, oil forward. However, Gard believes “work must by-case basis. pollution, wreck removal and dock damage. In continue to develop its scope. For example, it addition, underwriters normally charge a seems that a large share of ships trading in the surcharge with respect to Hull and Machinery Arctic during summer months could have Emergency experiences (H&M) and Cargo Insurance. limited or no ice class, and not be built for or The problems that a ship experiences in an The role of an insurer is to insure the risks experienced in trading in such a pristine and emergency in the Arctic are likely to be that its assureds encounter in their trading fragile environment. Yet such ships will be in significant and challenging. It can take activities, Gard says. These risks are based on compliance with the Code which sets few considerable time to get appropriate response an evaluation of the probability that the requirements for this type of ship.” personnel and equipment in place in the event insurer will have to pay a claim. Gard has of a casualty. Apart from having only a few insured several voyages in recent years, which workable months to conduct any cleaning or Navigational/operational remedial work, airstrips are remote, fog and have been performed by a small group of well challenges snowstorms can ground workers for weeks at prepared, experienced operators with only Rough and rapidly changing ice and a time, and it may be impossible to bring in minor incidents. This trade remains quite weather conditions, imprecise positioning and sufficient vessels, equipment and other limited involving mainly specialised inexact sea charts, the Arctic area’s

22 SUMMER 2017 www.frontierenergy.info

ARCTIC INSURANCE

resources to assist in a clean-up operation. Any wreck removal can be expected to be very expensive and dangerous, if not impossible. As a result, response costs may be prohibitively high due to the time, specialist needs and distances involved, and in practice mobilisation time takes too long to allow for any immediate response. The complex logistics can mean that a minor incident can easily develop into a major casualty, and because of the ecological sensitivity of Arctic waters this can also lead to signiﬁcant environmental damage. A simple engine failure can end up as a wreck removal due to mobilisation constraints.

Insurance needs P&I liability insurance is compulsory for Arctic trade. Generally P&I policies do not include trading limits in their policies. However, P&I Club rules will generally require its members to notify the Club if a ship is to perform an Arctic voyage on the basis that this can represent an alteration of risk. The Club needs to assess whether, and on which conditions, it may agree to cover the risks involved, and its member will have to provide a full risk assessment for planning a safe voyage. Hull and Machinery (H&M) insurance generally excludes Arctic waters as a trading area unless prior permission is obtained from the insurer. Assureds are expected to have a well-prepared and equipped ship and competent crew to perform a safe voyage. A major issue is the availability and cost of assistance. On the Northern Sea Route transits, Atomflot has agreed to provide free assistance to any vessel under its escort as part of the escort dues. This has enabled the risk and insurance premiums to be kept at lower levels. Similar agreements could be established for other Arctic destinations. Moreover, the nascent nature of Arctic shipping presents additional challenges to insurers. For new, emerging or developing risks, insurers do not have sufficient historical information to establish an actuarial relation between activity, incident, claims, safety measures, deductibles, premiums and settlement costs, notes Steven Sawhill, an Arctic expert from classification society DNVGL, Norway. “We learned, not surprisingly, that insurers are very interested in safety. A good safety record is good for business – both for insurers and their customers. They are also keenly aware of the growing interest and activity in the Arctic. Although insurers lack solid risk management information for the Arctic, they expect incidents in the Arctic will be more costly due to the difficulty of rendering timely and effective assistance to ships in need in this remote region,” says Sawhill. “Most importantly, we learned that insurers see themselves as part of the solution for safe Arctic shipping. They believe the insurance

P&I CLUB EXPECTATIONS Before a vessel sets sail to the Arctic, its owners and managers need expert advice on many topics, including asking whether the requirements of all states that have jurisdiction over any parts of the planned route been identified, and steps taken to ensure they can be complied with? • Have communications and navigation aids been upgraded to provide satisfactory performance in polar regions? • What access will the ship have to ice forecasts, other relevant meteorological advice, and to up-dated information during the voyage? • Are the ship’s key controls and equipment capable of operation at the whole range? • What are the costs of any additional insurance premium or increase of temperatures that may be experienced en route during the polar voyage? • What extra spare parts should be carried on board? • Have the crew been briefed and trained appropriately for the additional risks? • Are they aware of the potential unreliability of charts or electronic aids? • Have they undergone recent medical checks, and do they understand the potential unavailability of medical help? • Do (some at least of) the crew have experience of a previous polar voyage? • Have contracts been arranged for any icebreaker and pilotage services that are required for the intended passage? • Have contingency plans been considered for the availability of salvage services from icebreakers, and for conducting clean-up measures in the event of an oil spill? Source UK P&I

industry can take additional measures to improve safety,” says Sawhill. One prominent example is the Arctic Marine Best Practice Information Forum, an initiative of the International Union of Marine Insurers in cooperation with the Arctic Council.

Restrictions and straits The combination of draught restrictions, narrow straits, severe ice conditions and lack of infrastructure are signiﬁcant risks that will affect the insurance premium in terms of navigation in areas such as the North West Passage, notes Karl Magnus Eger in his ‘Comparison of Marine Insurance for Arctic Routes’ paper. “Draught limited to 10 m excludes many of the standard types of ship unless they are very lightly loaded. “The deep draught routes via the Prince of Wales Strait (or M’Clure Strait) would be

suitable in this sense, but have the most extreme ice conditions in the archipelago. Furthermore, it is likely that navigation on the NWP will continue to be difficult due to the pattern of ice drift from the Central Arctic Ocean swept southward through the Canadian archipelago. The previous observations also show a very high year-toyear variability of sea ice coverage in the NWP, an important factor of uncertainty when considering marine insurance,” he says. Moreover, the severe ice conditions would be potentially damaging to hulls, which means that additional Hull & Machinery insurance would be required in order to cover the risk, notes Eger. In addition, the P&I cost would most likely be very high for any shipowner that enters the NWP. When considering the availability of icebreaker assistance, it seems quite limited (from June to November). In light of insurance, this will most likely increase the premium. In additions, there is uncertainty related to the official statistics of incidents on the NWP. Furthermore, there are examples of ships having navigated the NWP without the knowledge of the Canadian authorities. Thus, it is difficult for Canadian authorities to provide a complete picture of the NWP’s historical accident statistics. There is limited knowledge and research on the marine insurance aspects of the NWP. However, as demonstrated, there are several risk aspects that may imply that the insurance premium will remain high, said Eger.

Going forward Currently there have not been any signiﬁcant commercial voyages using the central Arctic Ocean as a shortcut. However, if one considers the possibility of any future voyages, the insurance rate is likely to be higher than for the coastal routes. Higher risks for ice damage to ships and potential damage to cargoes in extreme cold temperatures, and non-existent maritime infrastructure in the Central Arctic Ocean will most likely be factors in determining future insurance rates for the region. Predictable response times and costs for casualties are important for insurance purposes. Insurers would like to see further cooperation, coordination and mutual assistance between the Arctic states. The levels of response personnel and equipment in place will never compare to those along traditional shipping routes. Collaboration is therefore even more important to ensure that the resources available in the Arctic are used as efﬁciently as possible and permissions to act are expedited. In addition, and perhaps key to safety in the Arctic, is the level of preparation carried out by shipowners. The depth of risk assessment, level of knowledge, equipment on board and competence of the crew for Arctic conditions are critical to reduce risk. FE www.frontierenergy.info SUMMER 2017 23

OFFSHORE PROTECTION /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Sea ice spray is a hazard to crew and vessel

Predicting sea spray on Arctic OFFSHORE STRUCTURES ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Sea spray icing poses a threat on multiple levels from personal safety and hindering operation of essential components to jeopardising the stability and integrity of offshore structures and vessels. The Rig Spray JIP aims to understand and mitigate these issues

harsh Arctic conditions. The trend towards increased activity in the Arctic, and especially the ice-free areas, means that the issue of sea spray icing needs to be addressed. “Sea spray icing poses a threat on multiple levels, from blocking the operation of essential components to jeopardising stability and integrity and thus leading to an increased risk of capsizing,” says Per Olav Moslet, Arctic Technology Programme Director at DNV GL, speaking at the JIP launch. A number of recognised standards, for example DNV GL’s offshore standard ‘Winterization for Cold Climate Operations (DNV-OS-A201)’, provide guidance on mitigating ice accumulation using specified anti- and de-icing procedures. The standards available today give requirements to safety functions and to some extent describe mitigation solutions, but do not give a specific answer to how and where they should be implemented. “We have already made progress in addressing the challenge through the MarIce JIP, where DNV GL worked together with the Norwegian University of Science and Technology and Statoil to create the world’s most advanced marine-icing model. However, this needs to be developed further,” said Olga Shipilova, DNV GL’s Project Manager for the RigSpray JIP, speaking at the launch. The present model still lacks an accurate representation of sea spray, which is a very important parameter for ice formation as current knowledge of sea spray generation is limited to very local metocean conditions and sporadic vessel designs. “We certainly need to fill this gap with more experimental and modelling studies,” says Shipilova.

winterisation requirements and real physical ctivity in Arctic waters is expected conditions for drilling rigs, production to increase significantly over the platforms and vessels. next decades and with it, harsh A key goal of the project is developing a environmental conditions will make work marine icing model able to estimate ice tough and difficult with frozen sea spray one Spray prediction accumulation on offshore structures using key issue. Oil and gas explorations and The rate of ice accretion is determined by increased shipping activity will introduce historical metocean data. This is obtained by the amount of water hitting a surface per time many new ships and offshore and the heat transfer from the surface, constructions in these waters, and and both must be accurately predicted More traffic in ice-infested waters will expose into icy, stormy seas. for marine icing models to give reliable More traffic in ice-infested waters results. Due to a limited number of vessels and offshore platforms to icing events. will expose vessels and offshore available sea spray measurements, all existing models are associated with a platforms to icing events. Icing on structures may occur when the air temperature refining an existing numerical model to large uncertainty in the amount of sea spray. is lower than the freezing point of seawater. represent heat transfer and spray flux more “We aim to ensure that the design of icingFreezing of sea spray is generated when the accurately whilst maintaining an efficient mitigation measures delivers both safety and ship’s hull slams an oncoming wave or waves numerical code. The tool estimates marine cost benefits,” says Moslet. crash into structures. icing loads enabling the user to calculate The project started in 2016 and is To study and better understand the issues relevant annual probability of exceeding expected to last for three years with a budget surrounding sea spray icing, classification loads from marine icing for a given of NOK18.6 million. The project receives society DNV GL is leading the RigSpray Joint installation and location. financial support from the Research Council Industry Project in a bid to mitigate and protect of Norway (PETROMAKS 2), Statoil, ENI, OMV, Aker BP and Lundin. The project is offshore vessels and structures from debilitating Operational capabilities weather induced physical conditions. managed by DNV GL and executed in Today, the operational capabilities of most The industry collaboration is developing a collaboration with Sintef ICT and University conventional vessels and offshore structures simulation model that bridges functional of Oslo. FE do not meet the requirements for operating in 24 SUMMER 2017 www.frontierenergy.info

ARCTIC FORUM

SUPPORTING THE CODE The first Arctic Shipping Best Practice Information Forum was recently held in London aiming to support effective implementation of the Polar Code by making publicly available, at a web portal, hyperlinks to information relevant to all those involved in safe and environmentally sound Arctic shipping, including vessel owners/operators, regulators, classification societies, marine insurers, and indigenous and local communities. Here we report on two of the key issue raised at the event /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

reated by eight Arctic States (Canada, Denmark, Finland, Iceland, Norway, the Russian Federation, Sweden and the United States), the forum aims to raise awareness and promote effective implementation of the International Maritime Organization’s International Code for Ships Operating in Polar Waters (Polar Code), the mandatory international framework that increases the safety of ship operations and mitigates the impact on the people and the vulnerable environment in Polar waters. It came into force in January 2017. The Forum was referenced in the Arctic Council’s Ministerial Declaration in Fairbanks, Alaska, on 11 May 2017, signed by the foreign ministers of the eight Arctic States. Finland’s Anita Makinen, the Forum Chair, said: “The inaugural meeting … is an important milestone in identifying and gathering information to support safe and environmentally responsible Arctic shipping. “The input of so many stakeholders in the Forum demonstrates the importance of working in a collaborative approach to support the effective implementation of international regulations.”

Arctic Coast Guard The Arctic Coast Guard Forum (ACGF) is a non-binding, informal and operationally driven forum for coast guards of the eight Arctic countries. It was established in 2015 to foster a safe and secure environment in the Arctic region, promote cooperation between the states and public authorities, and conserve the environment in challenging conditions. The aim of the forum is “Safer and secure and environmentally responsible maritime activity in the Arctic”. The Finnish Border Guard holds the chairmanship of the forum for years 2017-2019. The Arctic region as an operational environment is characterised as risky and highly complex due to remoteness, long physical distances to civilization, low temperatures, uncertainty with ice and weather, icing, lack of infrastructure and

The Polar Code covers commercial and leisure craft

resources, limited communication network and vulnerable nature. The increasing maritime operations in the Arctic call for more competence and capabilities both from the industry and governments regarding safety and preparedness. Considering the growing demand for international dialogue on maritime safety and preparedness, the Arctic Coast Guard Forum (ACGF) aims to exchange best practices and enhance multilateral cooperation on maritime safety in the Arctic region. Even though the maritime areas of the Arctic countries are very different from each other and differ according to each country’s search and rescue region (SRR), the forum has identiﬁed common challenges for maritime and aeronautical search and rescue (SAR) in the Arctic. Long distances, limited resource presence, the capacity to host patients, achieving situational awareness, lack of infrastructure, and unsuitable evacuation and survival equipment have been recognised as issues challenging the emergency preparedness system in the Arctic. The ACGF is running a training exercise in September 2017 in the Denmark Strait area between Iceland and Greenland. During the exercise common operational guidelines for ACGF participants will be tested. In the future a TTX (table-top exercise) and/or LIVEX every year has been planned to be arranged in order to enhance cooperation between the Arctic coast guards. The European Space Agency (ESA) has

supported the development of a Polar Code Decision Support System (PCDSS) aimed at aiding ships and vessels implementing the IMO Polar Code. The operation of ships in the Polar Regions carry signiﬁcant risks, such as the loss of life or property and damage to the delicate polar environment. To help address these risks, the IMO has approved Polar Code to supplement its existing instruments to increase the safety of ship operations and mitigate the impact on people and the environment in the remote, vulnerable, and potentially harsh polar waters.

PCDSS solution The PCDSS solution includes aggregated historical information obtained from earth observation data and some in situ measurements; near real time information obtained from earth observation data; forecasted information obtained from models to which earth observation data is an important input; the integration of other data types. The PCDSS has been developed jointly by four organisations involved with Polar satellite remote sensing technologies: Polar View Earth Observation Ltd, Technical research Centre of Finland (VTT), British Antarctic Service and AWST. Work is now focused on completing the population of the platform with the necessary data feeds. Once the necessary data feeds are operational, two qualiﬁed ice pilots will test the PCDSS. FE www.frontierenergy.info SUMMER 2017 25

INSIGHT

FRANKLIN’S

final journey ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

London’s National Maritime Museum (NMM) is hosting a major exhibition, exploring the mysterious fate of Sir John Franklin and his crew on their final expedition – a mystery that still remains unsolved today. The exhibition was developed by the Canadian Museum of History (CMH) in partnership with the NMM and Parks Canada, and in collaboration with the Government of Nunavut and the Inuit Heritage Trust

ith over 200 objects on display from the substantial collections of the NMM and the CMH, alongside finds from HMS Erebus – whose resting place was only discovered in 2014 – on show for the very first time in Europe, the exhibition advances our understanding of this tragic expedition, revealing the Victorian fascination with the Arctic, and begins to answer questions about what may have happened to those men on their fateful journey to the Arctic all those years ago. Setting sail from the Thames on 19 May 1845, Sir John Franklin and his crew, aboard HMS Erebus and Terror, were the British nation’s biggest hope of finally traversing the whole of the North-West Passage – the much desired passage from Europe to Asia thought to enable an easier trade route. A hope that Britain believed with near certainty was about to be realized by the largest expedition the nation had ever sent to the Arctic region, under the leadership of the already well-decorated and well-travelled, 59-year-old Franklin. However, July 1845 in Baffin Bay was to be the last time Europeans saw Franklin and his 128-man crew, as HMS Erebus and Terror sailed toward their goal of finally charting the remainder of the North-West Passage. Two years passed and still nothing had been heard from the men, prompting the first of a series of expeditions to be sent into the Arctic in an attempt to find them and the reasons why they had not been in touch with their loved ones back home. Between 1847 and 1880, over 30 search expeditions ventured to the Arctic in the hopes of uncovering the fate of 26 SUMMER 2017 www.frontierenergy.info

the Franklin expedition. Urged by Lady Jane Franklin, Parliament, and even the British press as public concern grew, the Admiralty dispatched expeditions both overland and by sea. By 1850 there were still no clues to the fate of the crew and the British Government, after much criticism, offered substantial rewards of £20,000 to any parties who could provide news of the expedition or assist its crew. Over the course of the next 30 years, news and relics, such as tin cans, snow goggles and cutlery – examples of which can be seen in Death in the Ice – ﬁltered back to Britain that spoke of what had happened: the deaths of the entire crew through a combination of factors including scurvy and starvation, and speculation of cannibalism and potential madness brought

Adapt and thrive Established in 1999, the Government of Nunavut represents over 40,000 “Nunavummiut” living sparsely on a land nearly two million square kilometres in size. Nunavut is Canada’s largest territory and the newest member of Canadian confederation. Nunavut (Inuktitut for “Our Land”) has a rich and complex human history spanning nearly 5,000 years, and highlighted by the remarkable ability of Inuit and their predecessors to adapt and to thrive in one of the world’s harshest and most challenging environments.

on by lead poisoning. It was not until 1859 that the sole piece of paper, often known as the Victory Point Note (and on display as part of the exhibition), was found and revealed anything about what happened, including the date of Sir John Franklin’s death – 11 June, 1847. However, Erebus, Terror, and the bodies of Franklin and most of his crew (three bodies were found buried on Beechey Island and two skeletons, which were returned to Britain during the 19th-century) were still nowhere to be found.

Last search expedition It was over 100 years after the last search expedition returned home that investigation into the fate of the Franklin expedition garnered public attention, when forensic anthropologist Dr Owen Beattie began the 1845-48 Franklin Expedition Forensic Anthropology Project (FEFAP). Relics and human remains, overlooked by earlier searchers, were collected in 1981 by Beattie’s team from sites on King William Island. The human remains were analyzed using modern forensic techniques in an attempt to ascertain what might have caused the death of the crew and to identify which crew members’ remains had been found. Through Beattie’s research it was found that the amount of lead in the bones of some of the men that had been found was exponentially high, leading to the theory that lead poisoning may have been one

INSIGHT

of the factors contributing to the expedition’s demise. More widely known is Beattie’s later work on Beechey Island, where he and a specialized team exhumed and autopsied three remarkably well-preserved crewmen who had died and were buried during the Expedition’s first winter in the Arctic. Examination of tissues collected from the men’s bodies reaffirmed Beattie’s earlier theory that lead poisoning was one of the factors leading to the expedition’s destruction. Beattie further supposed that the expedition’s tinned food, hailed as cutting edge technology and stocked in abundance, had been contaminated by lead solder used to seal the tins and was the most likely culprit. Visitors to Death in the Ice will get the chance to step into a forensic tent for themselves and explore the evidence and theories put forward of what caused the deaths of the 129-strong crew. Beattie’s research renewed interest in the mysterious fate of Franklin and his crew, but the question of what happened to HMS Erebus and Terror remained unanswered. That was until 2014, when the wreck of HMS Erebus was discovered by Parks Canada, as part of a multi-faceted partnership that included government, private and non-profit groups, followed by the discovery of HMS Terror in

2016, marking two of the most important archaeological finds in recent history. As Parks Canada’s Underwater Archaeology Team begin to bring to light the ships and their contents, Death in the Ice will see objects relating to the expedition and the subsequent search parties, including personal items, clothing, and components of the ship, displayed in Britain for the first time in over 170 years. Furthermore, finds from HMS Erebus itself will be on display, many for the very first time since their recovery, including the ship’s bell. In conjunction with new research from Parks Canada, the NMM’s own preeminent collections, and those of CMH, the exhibition will further our understanding of the expedition and reveal what life was like for the men aboard the ships, explore the Victorian obsession with the Arctic, and seek to answer questions about

what exactly may have happened to those men on their fateful journey to chart the North-West Passage all those years ago. The exhibition emphasises the signiﬁcant role of the Inuit in uncovering the fate of the Franklin expedition, showcasing Inuit oral histories relating to the European exploration of the Arctic Archipelago.

Trade with Inuits Numerous Inuit artefacts, including some incorporating materials of European origin, which were traded from explorers or retrieved from abandoned ships, are on display, highlighting the interactions between the search expeditions and the Inuit. Death in the Ice: The Shocking Story of Franklin’s Final Expedition is developed by the Canadian Museum of History, in partnership with Parks Canada and with the National Maritime Museum, and in collaboration with the Government of Nunavut and the Inuit Heritage Trust. FE

Exhibition information for visitors: Venue: Dates: Opening times: Visitor enquiries: Admission:

National Maritime Museum, Greenwich 14 July 2017 – 7 January 2018 Every day, 10.00 – 17.00 +44 (0)20 8858 4422 / www.rmg.co.uk/franklin Adult £12, Child £7, Concession £11. See www.rmg.co.uk for online discounts and further details

www.frontierenergy.info SUMMER 2017 27

EVENTS, CONFERENCES & EXHIBITIONS /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

NEVA September 19 – 22 St Petersburg, Russia Expoforum Convention and Exhibition Centre NEVA is one of Russia’s leading shipping conference and exhibitions for the country’s commercial maritime industries, promoting their development opportunities, products, services, designers and manufacturers, and their cooperation with world-wide shipping and trade. NEVA is supported by the Russian government as a leading commercial maritime B2B event, continuing to strengthen ties between the Russian National Shipbuilders and international markets. NEVA 2017 takes place once again at Expoforum’s Convention and Exhibition Centre, located near Pulkovo International Airport, St Petersburg. Around 39,000 square metres of exhibition space will cover three halls will accommodate increasing demand for space from all exhibitors, while the modular convention centre caters for events of all types and sizes. Over 500 companies representing international producers of shipbuilding design, ship repair facilities, marine equipment manufacturing, offshore technology, oil and gas extraction, marine exploration of the Arctic regions and the Northern Sea Route, safety, navigation, hydrography, marine staff training and education will exhibit their products, services and activities while participating in the premier B2B marine professional platform in Russia. www.transtec-neva.com

Arctic Shipping Forum, North America October 30 – November 1 Montreal Marriott Chateau Champlain, Montreal, Canada This major maritime conference will look at the impact of the entry-intoforce of the Polar Code and current implementation. Organised by Informa Maritime, the event will take a step-by-step walkthrough on obtaining a polar ship certiﬁcate, consider the latest in new ship and propulsion design for ice-going vessels and providing greater focus on key areas of Arctic shipping including risk management, the development of expedition cruise shipping in the Arctic, options for efﬁcient ice operations and new ship designs for extreme conditions. Innovations in communications in the high north will also be considered. maritime.knect365.com/arctic-shipping-north-america /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Arctic Frontiers: Connecting the Arctic January 21 – 26, 2018 Tromso, Norway Arctic Frontiers is an international arena on sustainable development in the Arctic. The conference addresses the management of opportunities and challenges to achieve viable economic growth with societal and environmental sustainability. Arctic Frontiers brings academia, government and business together to create a ﬁrmer foundation for decision-making and sustainable economic development in the Arctic. www.arcticfrontiers.com

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2017 Arctic Energy Summit 18 – 20 September Finlandia Hall, Helsinki, Finland An Endorsed Project of the Arctic Council’s Sustainable Development Working Group, this event is co-led by Finland, Iceland, Russia and Gwich’in Council International and is organised by the Institute of the North and Finland’s Ministry of Economic Affairs and Employment www.uarctic.org UK Arctic Science Conference 2017 19 – 21 September Oban, Scotland The Scottish Association for Marine Science will be hosting the UK Arctic Science Conference 2017, with financial and administrative support from the NERC Arctic Office. This three-day conference brings together UK Arctic scientists of all natural and social science disciplines to present and discuss recent findings. The conference will be held in Corran Halls, Oban. The UK Arctic Science conferences have brought together researchers with a common interest in the Arctic environment. The conference is multidisciplinary and with an inclusive approach to abstract submission. www.arctic.ac.uk The 10th Polar Law Symposium 13 – 14 November Arctic Centre, Rovaniemi, Finland The Northern Institute for Environmental and Minority Law (NIEM) at the Arctic Centre of the University of Lapland is pleased to announce that the 10th Polar Law Symposium will be organized by NIEM at the Arctic Centre in Rovaniemi, Finland. The symposium is integrated with the bi-annual Rovaniemi Arctic Spirit Conference, to be held from 14–16 November 2017. Each year the Symposium brings a great number of renowned scholars, postdoctoral and doctoral researchers from across the world to share research-based scientific knowledge on diverse polar relevant issues. www.rovaniemiarcticspirit.ﬁ

Arctic Change 2017 December 11 – 15 Québec City Convention Centre, Québec, Canada Building on the success of its previous Annual Scientiﬁc Meetings, the ArcticNet Network of Centres of Excellence and its partners are hosting this event bringing together the global Arctic research community. Arctic Change 2017 will bring together leading Arctic researchers, graduate students, Northern community representatives, and government and industry partners and stakeholders from all ﬁelds. During the week, the world’s foremost Arctic scientists will discuss the emerging global challenges and opportunities arising from climate change and modernization in the circum-Arctic. With over 1,500 participants expected to attend, Arctic Change 2017 will be one of the largest transsectoral international Arctic research conferences ever held in Canada. www.arcticnet.ulaval.ca

2018 12th Arctic Shipping Summit 21 – 22 February Montreal, Canada Organised by ACI, this two-day conference offers informative presentations followed by interactive Q&A sessions, panel discussions and an open discussion involving delegates. These talk will give a deep insight on the views shared from the different aspects of Arctic Shipping. We will explore and discuss current regulations and requirements from the IMO and the Coast Guard. The event will also examine commercial aspects, infrastructure and promising changes in cruise operations as well as the insurance challenges that are increasingly ongoing. It will also look into training requirements and ship design options to help aid in the future of Arctic operations. The conference will bring together various key industry stakeholders including shipowners, shipmangers and associated solution providers, fuel solutions, IT and data associations, consultants and technology providers. www.wplgroup.com/aci/event/arctic -shipping-summit

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