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.

Rosneft Estimates 90 Bboe in Exxon-Rosneft Projects

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by  Dow Jones Newswires
Angel Gonzalez
Wednesday, April 18, 2012

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.

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BOEM Seeks Public Opinion on Seismic Survey Activity Offshore Alaska

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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

Uploaded by IONGeophysical on Sep 14, 2011

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.

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USA: ABS to Class Unique Arctic Containment System

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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.

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Rosatomflot to Construct World’s Largest Nuclear Icebreaker

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Rosatomflot has revealed its plans to construct an LK60, the largest and most powerful nuclear icebreaker ever built, that will be deployed in the Northern Sea Route. Vyacheslav Ruksha, General Director of Rosatomflot, says to BarentsObserver.com that the estimated cost for a new icebreaker is € 1.1 billion (approx $ 1.4 billion) and is already included in Rosatomflots’s 2012 budget.

The tender for a new icebreaker will be announced this summer and the construction contract will probably be signed in September. If everything goes according to plan, the construction will commence by the end of 2012 and the newbuild might be ready for traffic by 2018.

Russia is the major player in deploying nuclear icebreakers for shipping in the Arctic and other freezing seas. The company wants to develop its fleet that would be a key element of the Northern Sea Route infrastructure thus the new generation nuclear icebreaker is being designed.

The LK60 icebreaker is designed to maneuver through three meters of ice with its supreme power of 60 MW. This is exactly what Rosatomflot needs to open the Northern Sea Route for commercial traffic all year around. Her draught varies ranging from 8.5 m to 10.8 m. The new design features maximum width of 34 meters, compared to the maximum of 30 meters width at the Arktika class vessels. Such a design will be capable of providing support to larger tankers through the northern sea route.

The LK60 icebreaker will replace one icebreaker of the Arktika class and one icebreaker of Taimyr class.

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Norway: Little Knowledge on Northeastern Barents, NPD Says

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The Norwegian Government has decided that the Norwegian Petroleum Directorate will map the geology in the northeastern part of Norway’s new sea area in the Barents Sea. According to the plan, the seismic surveys will start this summer and continue into 2013. This will provide important knowledge regarding possible oil and gas resources in this area.

“We have very little knowledge concerning the geology in the northeastern Barents Sea. In order to know more about the resource potential, we need more data,” says Sissel Eriksen, exploration director in the Norwegian Petroleum Directorate.

On 15 September 2010, Norway and Russia signed the agreement relating to maritime demarcation and cooperation in the Barents Sea and Arctic Ocean. The agreement entered into force on 7 July 2011.

On the Norwegian side, the Government has started an opening process with the aim of awarding production licenses in the southeastern sector of the Barents Sea. The geological mapping started last summer and will continue until this summer.

Earlier this year, the NPD entered into contracts regarding two vessels that will acquire seismic data both in the southeastern sector of the Barents Sea, in the sea area around Jan Mayen and in Nordland IV and V this summer.

“The plans to also map the northeastern sector of the Barents Sea mean that we need more capacity to acquire seismic. This assignment has been submitted for tender,” says Eriksen.

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