Category Archives: Arctic
This region of the planet, north of the Arctic Circle, includes the Arctic Ocean, Greenland, Baffin Island, other smaller northern islands, and the far northern parts of Europe, Russia (Siberia), Alaska and Canada.
Shell Alaska yesterday began drilling operations at its Burger prospect in the Chukchi Sea, offshore Alaska. The Noble Discoverer drillship is being used for the operations.
“The occasion is historic. It’s the first time a drill bit has touched the sea floor in the U.S. Chukchi Sea in more than two decades. Today marks the culmination of Shell’s six-year effort to explore for potentially significant oil and gas reserves, which are believed to lie under Alaska’s Outer Continental Shelf. In the days to come, drilling will continue in the Chukchi Sea, and we will prepare for drilling to commence in the Beaufort Sea,” said the company in a press release.
- Arctic frontier opens as Shell begins drilling in Chukchi Sea (fuelfix.com)
- Statoil delays start of Chukchi drilling until at least 2015 (fuelfix.com)
- Drilling Off The Alaska Coast For The First Time In More Than Two Decades (alan.com)
Statoil is stepping up its Arctic activities and will drill nine wells during a non-stop 2013 Norwegian Barents exploration campaign. The company plans to meet development challenges here by tripling its Arctic technology research budget.
Statoil’s exploration experience in the Barents is already extensive. Of the 94 exploration wells drilled in the Norwegian Barents Sea so far, Statoil has been involved in 89. Nine more Statoil-operated wells are on their way here next year.
“After our Skrugard and Havis discoveries we still see attractive opportunities here,” says Statoil Exploration executive vice president Tim Dodson.
“This is a less challenging area, as the Norwegian Barents is one of the only Arctic areas with a year-round ice-free zone. We also see the possibility of utilising knowledge gained here for Arctic prospects elsewhere later on – just like we’ve already done with Snøhvit.”
Statoil will start drilling in Nunatak in the Skrugard area in December, and will drill and complete four wells in this area over a six-month period.
“These wells are time critical, as any additional resources will make the Skrugard development even more robust,” says Dodson.
The campaign will then continue with the drilling of two-three wells in the Hoop frontier exploration area further north in the Barents in the summer of 2013. These will be the northernmost wells ever drilled in Norway.
The 2013 Barents drilling campaign finishes in the most mature province of the Barents: the Hammerfest basin. Statoil will carry out growth exploration close to the existing Snøhvit and Goliat discoveries here.
Arctic drilling unit
In addition to increasing its drilling activities, Statoil has created a technology road map to prepare for activities in even harsher Arctic areas.
- A tripling of the current Arctic research budget – from NOK 80 million (in 2012) to NOK 250 million (in 2013)
- A research cruise to north east Greenland in September
- The maturing of an Arctic drill unit concept
Some of the technology highlights include work to allow for cost-effective 3D seismic for exploration prospect evaluation in ice, and the continuing development of a tailor-made, Arctic drill unit.
The work on the future drilling unit is based on Statoil’s experience with developing specialised category rigs for the Norwegian continental shelf (NCS).
The unit will be one that can operate in a wide range of water depths across the Arctic, and will involve integrated operations in drifting ice.
Functions here are to include a management system to reduce ice impact, an optimised drilling package for faster drilling and increased rig availability, and solutions to ensure that the rig maintains its position. At present no robust solution for dynamic positioning dedicated for ice operation exists.
“When we see a technology need, we try to fill the gap ourselves. We have now directed our strategic focus towards developing technology for exploration and production in ice. A new dedicated unit has been established to solve these challenges,” says Statoil Technology, Projects and Drilling executive vice president Margareth Øvrum.
Capacity is key
“We’ve secured a five-year contract for Seadrill‘s West Hercules drilling rig. The rig is currently being prepared for Arctic conditions, and can be used to drill consecutively in the region for years to come,” Dodson says.
Broad exploration experience in the Barents Sea and available rig capacity make Statoil well prepared for the 22nd licence round on the NCS. Applications are due in early December, while the awarding of new licences will take place in spring 2013. Seventy-two blocks in the Barents will be on offer.
“The Skrugard discovery has reignited interest in the Barents. A number of major companies that had left the area will be looking to make their way back in. The competition will be fierce, but we’ve built up a strong track record here, and our application will reflect this,” Dodson says.
- Chinese icebreaker continues Arctic voyage (shippingtribune.com)
- Shell’s drilling rig begins two-week trek to Arctic sea (fuelfix.com)
The commentary in China’s Liberation Army Daily falls short of a formal government statement, but marks the harshest high-level warning yet from Beijing about tensions with the Philippines over disputed seas where both countries have recently sent ships to assert their claims.
This week American and Filipino troops launched a fortnight of annual naval drills amid the stand-off between Beijing and Manila, who have accused each other of encroaching on sovereign seas near the Scarborough Shoal, west of a former U.S. navy base at Subic Bay.
The joint exercises are held in different seas around the Philippines; the leg that takes place in the South China Sea area starts on Monday.
“Anyone with clear eyes saw long ago that behind these drills is reflected a mentality that will lead the South China Sea issue down a fork in the road towards military confrontation and resolution through armed force,” said the commentary in the Chinese paper, which is the chief mouthpiece of the People’s Liberation Army.
“Through this kind of meddling and intervention, the United States will only stir up the entire South China Sea situation towards increasing chaos, and this will inevitably have a massive impact on regional peace and stability.”
Up to now, China has chided the Philippines over the dispute about the uninhabited shoal known in the Philippines as the Panatag Shoal and which China calls Huangyan, about 124 nautical miles off the main Philippine island of Luzon.
China has territorial disputes with the Philippines, Vietnam, Brunei, Malaysia and Taiwan in the South China Sea, which could be rich in oil and gas and is spanned by busy shipping lanes.
Beijing has sought to resolve the disputes one-on-one but there is worry among its neighbors over what some see as growing Chinese assertiveness in staking claims over the seas and various islands, reefs and shoals.
In past patches of regional tension over disputed seas, hawkish Chinese military voices have also emerged, only to be later reined in by the government, and the same could be true this time.
Since late 2010, China has sought to cool tensions with the United States over regional disputes, trade and currency policies, human rights and other contentious issues. Especially with the ruling Chinese Party preoccupied with a leadership succession late in 2012, Beijing has stressed its hopes for steady relations throughout this year.
Nonetheless, experts have said that China remains wary of U.S. military intentions across the Asia-Pacific, especially in the wake of the Obama administration’s vows to “pivot” to the region, reinvigorating diplomatic and security ties with allies.
The Liberation Army Daily commentary echoed that wariness.
“The U.S. strategy of returning to the Asia-Pacific carries the implication of a shift in military focus, and there is no better strategic opening than China’s sovereignty disputes with the Philippines and other countries in the South China Sea,” said the newspaper.
“The United States’ intention of trying to draw more countries into stirring up the situation in the South China Sea is being brandished to the full,” it said.
(Editing by Sanjeev Miglani)
- China top military paper warns of armed confrontation over seas (thehimalayantimes.com)
- South China Sea Standoff Ratchets Up A Notch (chinabystander.wordpress.com)
- China accused of escalating South China Sea standoff (ctv.ca)
- Philippines says new China ship aggravates sea row (staradvertiser.com)
- Russian ships arriving in China for naval war game (worldnews.msnbc.msn.com)
- US and Philippines begin South China Sea drills (1oneday.wordpress.com)
- It’s Getting Ugly Between China And The Philippines In The South China Sea (businessinsider.com)
NEW YORK – Russian energy Czar Igor Sechin said Wednesday that U.S.-Russia economic relations still don’t reflect their full potential, but that opportunities to tap Russia’s massive oil reserves will provide opportunities for that to change.
At an event in New York describing details of Exxon Mobil Corp.‘s deal with OAO Rosneft, Sechin, who is Russia’s Deputy Prime Minister, said that “the time has come in Russia-U.S. relations for a step-up in the level of practical and real projects.”
The partnership between Exxon and Rosneft could give the companies access to about 90 billion barrels of oil equivalent in estimated resources from the Arctic Ocean and the Black Sea, Rosneft said Wednesday.
In a video presented to analysts in New York, Rosneft said that the partnership would drill its first wells at the Kara Sea in the Arctic Ocean as early as 2014-2015, with a final investment decision on full-scale development expected by 2016-2017. Sechin said that Kara Sea production is estimated to begin around 2027.
The Exxon-Rosneft deal comes in the wake of the Russian government’s efforts to step up the development of new oil production regions, especially in the Arctic. Sechin said that about 5% of oil output to come from new regions by 2020, and up to 40% by 2030.
“We recognize that the implementation of such projects will require strong and consistent support of the state,” which aims to ensure transparent terms of access to the new fields, Sechin said.
Sechin said that under new rules, tax rates were defined for different types of operational conditions. Exxon-Rosneft projects in the Kara Sea will have a royalty of 5%. Royalty levels for deepwater projects in the Black Sea will be 10%, Sechin said.
Long-term investment in offshore development is estimated to exceed $500 billion, Sechin added, creating more than 300,000 jobs.
Overall, the large scale investments needed to tap Russia’s massive oil and gas wealth provides an “enormous potential for U.S.-Russia cooperation, which ought to help us to overcome our over-politicized relationship,” he said.
Such large projects “will be welcomed and will find strong support of the Russian government,” Sechin said.
Copyright (c) 2012 Dow Jones & Company, Inc.
The Bureau of Ocean Energy Management (BOEM) announced yesterday that it was seeking public input on issues that should be tackled by the bureau in preparing an Environmental Assessment for proposed seismic data acquisition activity in Arctic areas of the Alaska Outer Continental Shelf (OCS).
ION Geophysical Corporation has applied to conduct an exploratory 2D marine seismic survey during the fall of 2012. The application proposes conducting operations throughout much of the Beaufort Sea Planning Area, with specific transect lines and segments within the Chukchi Sea Planning Area. Data obtained during this survey would be used by geologists and geophysicists to view and interpret large-scale subsurface geologic structural features and evaluate prospects for oil and gas reserves.
The Bureau of Ocean Energy Management (BOEM), an agency under the United States Department of the Interior that manages the exploration and development of the nation’s offshore resources, has also on its website announced ION’s permit application #12-01 and the associated area coverage map. BOEM has also explained the the procedures required for submission of comments, setting the deadline for April 30, 2012. More information can be found at BOEM’s official website.
Below you can see ION’s recent video: Case Study in Challenging
Environments: The Arctic Environment
Top of the world tactics at ION. See the ION approach in action as Joe Gagliardi, Director Arctic Technology & Solutions, tackles the punishing Arctic environment. By combining the capabilities across the company, ION delivers the answers and the technology that allows operators to acquire data further north than ever before and dramatically extends the short working season.
The American Bureau of Shipping (ABS) has announced it will class the first-of-its-kind Arctic Containment System (ACS), which will serve all exploration activities in the Chukchi and Beaufort seas offshore Alaska. The ACS will be deployed in June 2012.
ABS explains that a modular oil containment system will be installed on the deck of the non self-propelled ice-strengthened barge following its conversion to a floating offshore installation The dedicated barge will remain unmanned and on standby until deployed. Then, assisted by a tugboat, its trained crew will be able to respond to an oil spill incident in the exploration areas in a matter of days.
Shell has plans to drill up to six exploration wells off the coast of Alaska, later this year and has contracted with Superior Energy, the operator of the ACS, for the containment system to be available during the summer drilling season. The containment system would be able to mitigate spillage in the time it takes to drill an intervention well.
The oil giant’s Arctic drilling plans have been facing strong opposition from environmental activists. Today, twenty Greenpeace activists boarded two icebreakers leased by Shell from Finland’s Arctia Offshore. Shell has leased the vessels to support its upcoming drilling operations offshore Alaska.
- USA: Shell’s Chukchi Sea Oil Spill Response Plan Approved (mb50.wordpress.com)
- BP, Shell to partake in arctic drilling inquiry, Telegraph says (mb50.wordpress.com)