Russian – Norwegian Oil and Gas Industry Cooperation in the High North
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Russian – Norwegian Oil and Gas industry cooperation in the High North Drilling, Well Operations and Equipment 21th of February 2014 The Core Team: Introduction by INTSOK To develop the High North as a new energy province, we must have the necessary technology to operate in vulnerable Arctic areas. The Russian – Norwegian oil and gas industry cooperation in the High North project (RU-NO Barents Project) is the largest project INTSOK has ever undertaken in any market worldwide. The scope of the RU-NO Barents project, as a strategic project for both countries, is illustrated by the participation of both government and industry from both countries, thus being a part of the official Norwegian – Russian Energy Dialogue. The main objective of the RU-NO Barents Project is, through industry cooperation and knowledge of Arctic technology needs, to contribute to the growth of the Russian and Norwegian industry participation in future petroleum endeavors in the High North. Acting on this objective, INTSOK has mobilized the industry to: Assess common technology challenges Russia and Norway face in the development of the High North Analyze existing technologies, methods and best practice Russian and Norwegian industry can offer for the High North today Based on the above: Visualize the need for innovation and technology development the industry in our two countries needs to overcome Promote stronger industrial links between our two countries It is envisaged that the RU-NO Barents project will benefit the industry, supporting their strategic decisions/direction for increased participation in field developments in the High North. The RU-NO Barents Project will also be an important arena to promote and ascertain their level of commitment given to innovation and technology development, forging stronger industry links and partnerships across the border to face our common oil and gas technology challenges of the High North and preparing the industry to meet and overcome these challenges. The RU-NO Barents Project focuses on five major areas, which are all crucial to the development of an offshore oil and gas field. These are: 1) Logistics and Transport 2) Drilling, Well Operations and Equipment (this report) 3) Environmental Protection, Monitoring Systems and Oil Spill Contingency 4) Pipelines and Subsea Installations 5) Floating and Fixed Installations The RU-NO Barents Project could never have been undertaken without the guidance, support and financing from the Norwegian Ministry of Foreign Affairs, the Norwegian Ministry of Petroleum and Energy, Innovation Norway, Finnmark, Troms, Nordland, Rogaland and Akershus County Municipalities, the Barents Secretariat, ConocoPhillips Scandinavia AS, A/S Norske Shell, GDF Suez E&P Norge, Chevron Norge AS, Statoil ASA, Total E&P Norway, ENI Norge AS, ExxonMobil Production & Exploration Norway A/S, Det Norske Oljeselskap ASA, North Energy, FMC Technologies, GE Oil & Gas, the Norwegian Oil & Gas Association, Federation of Norwegian Industries, the Norwegian Confederation of Trade Unions, Petroarctic, Gazprom, Lukoil Overseas North Shelf AS, Krylov State Research Centre, Rubin Design Bureau for Marine Engineering , Union of oil & gas industrialists of Russia, Sozvezdye, Murmanshelf, as well as the University of Nordland/High North Center of Business and Governance, the Gubkin Russian State University of Oil & Gas , OG21 (Norwegian Oil & Gas Technology Strategy) , Marintek/Sintef , Greater Stavanger Economic Development and Det Norske Veritas (DNV). The RU-NO Barents project adds industrial weight to Norwegian – Russian energy cooperation in the wake of the maritime delimitation treaty. In addition it facilitates increased petroleum activity in the i RU-NO Barents Project, Drilling Well Operations and Equipment-Report, 21. February 2014 High North and focus is placed on carrying out the activity in a sustainable and responsible manner, with the petroleum industry taking the lead. I specifically would like to extend my sincere appreciation for the work undertaken by Geir Atle Sjøberg and the Task Force Core Team for developing this report within the drilling, well operations and equipment focus area. Stavanger, 21.February 2014 Thor Christian Andvik Project Director Barents Region INTSOK/RU-NO Barents Project ii RU-NO Barents Project, Drilling Well Operations and Equipment-Report, 21. February 2014 Foreword The purpose of this report is to present the work and conclusions of the work of the Drilling, Well Operations and Equipment Task Force of the RU-NO Barents Project. During the process of writing this report, two workshops were held. The intention of these workshops was to discuss the specific challenges when operating in the High North and to discuss industry capabilities, practice, readiness and technology gaps. The workshops have been characterized by openness and willingness to share views, knowledge and experience. In random order, the core team would like to thank the following participants for their contribution during the workshops: Krylov Shipbuilding Research Institute, NIPImorneft - Offshore OF Development Institute, Weatherford, Ckb-Rubin, Det norske oljeselskap, Det norske Veritas (DnV), EATON HERNIS Scan Systems AS, JSC Gazprom, GDF SUEZ E&P Norge AS, GE Oil & Gas – Norway, Giprospetsgaz - Pipeline Design Institute, Glamox International, Greater Stavanger Economic Development, Gubkin Russian State University of Oil and Gas, Gusto MSC B.V., The University of Bodø, Innovation Norway, Inocean AS, JSC Baltiysky Zavod, KPMG, Kvaerner Engineering AS, LUKOIL Overseas North Shelf AS, Metal One Corporation, Mining Institute KSC RAS, The Norwegian Ministry of Foreign Affairs, Newstar Connection LLC, NorLense AS, The Federation of Norwegian Industries, The Norwegian Oil and Gas Association, North Energy, OAO Sovcomflot, RUBIN - Marine Engineering Central Design Bureau, The Russian Maritime Register of Shipping, Seadrill Management AS, Shell Global Solutions, TOTAL E&P Norge AS, TUV International RUS Ltd, UC Berkeley, Ulstein Sea of Solutions BV, The University of Stavanger, Transocean AS, Thermtech AS, Technip Norge AS, Statoil ASA, Shell International E&P Inc., Rena Technology, PERPETUUM AS, OMV Aktiengesellschaft, Oiltools AS, Odfjell Drilling Technology, The Norwegian Petroleum Directorate (NPD), National Oilwell Varco, Maersk Contractors Norge AS, Kongsberg Seatex AS, GustoMSC B.V., FMC Kongsberg Subsea AS, DNO, Chevron Europe, INTSOK, Cameron Sense AS, BARTEC Technor AS, Aker Solutions, AGR Enhanced Drilling AS and Petroleum Safety Authority Norway. This report would not have reached its final destination without the effort made by the core team. The core team has included the following companies represented by: GDF SUEZ E&P Norge AS (Bjørn Skram Ellingsen), ExxonMobil Upstream Research Company (Daniel Fenz), Statoil ASA (Godtfred Svensen), Krylov Shipbuilding Research Institute (Vladimir Tarovik), Transocean Offshore Deepwater Drilling Inc. (Roderick J. Allan), Aker Engineering & Technology AS (Henrik Hannus), Shell International Exploration and Production Inc. (Mitchell M. Winkler), Total E&P Norge AS (Johan Kverneland), Seadrill Management AS (Rolf Mathiesen), Gazprom JSC (Vyacheslav Urmancheev), All Russian Geology Exploration Institute (Alexander Alekseevich Ilinsky) and Aker Solutions (Geir Atle Sjøberg). It is the hope of INTSOK that this report could spur increased efforts on both sides of the border, to continue to develop technologies allowing safe and sustainable development of oil and gas activities in the High North. This report will be updated when the other RU-NO Focus Areas have completed their reports respectively, and include relevant recommendations from these reports. Oslo, 21st of February 2014 Geir Atle Sjøberg Task Force Manager RU-NO Barents Project, Drilling, Well Operations and Equipment iii RU-NO Barents Project, Drilling Well Operations and Equipment-Report, 21. February 2014 Executive Summary This report provides a review of the most important challenges encountered by the oil and gas industry when conducting drilling and well operations in the Arctic. Furthermore, the report aims to highlight the technology currently available and the necessity of developing new technology solutions to ensure sufficient operational efficiency and sustainability. The physical characteristics and natural conditions of the Arctic will to a large extent dictate the nature of the challenges related to drilling and well operations in these areas. With regard to technological solutions and innovation, the key areas of interest have been defined for the following categories: Mobile drilling units (MODUs) and drilling installations Drilling and well operations Ice, weather and cold climate challenges Contingency planning and operations Logistics and other issues Mobile drilling units (MODUs) and drilling installations In the Barents Sea more than 50% of the sea areas have water depths of 200-500 m. The average depth is approximately 200 m and the maximum depth can exceed up to 600 m. In the central part and a vast shelf with depths of less than 100 m is predominating in the southeast and near the coast of the Svalbard Archipelago. In shallow water depths, bottom-resting submersible units or artificial islands may be used for operations in severe ice conditions. In deeper waters, the use of such technology is impracticable, and a MODU of some form will be required. Metrological and oceanographic data for the areas under consideration are not readily available to the industry.