Full speed ahead on Johan Sverdrup
NORWEGIAN SHELF A JOURNAL FROM THE NORWEGIAN PETROLEUM DIRECTORATE NO 1 - 2017
1-2017 NORWEGIAN CONTINENTAL SHELF | 1 More to gain Sub-surface The 50th anniversary of the start to oil and Johan Sverdrup was disco- gas production from the NCS is approaching vered with the aid of mas- with less than half the resources recovered. ses of existing geological Overall resources, including the estimate for PAGE data which were re-inter- those as yet undiscovered, have increased by preted, says Hans Christen more than 40 per cent since 1990. Photo: Emile Ashley Rønnevik. Over the past two months, we have pre- Foto: NTB scanpix 20 sented two reports which underline the big remaining oil and gas potential. In our latest resource report for fields and discoveries, entitled with good reason Value for the future, we point to the huge quantities of oil and gas already proven and awaiting Rockshot production. At 31 December 2016, 77 discoveries The photo in this issue were being assessed for development. And PAGE hails from Wilhelmøya more can be produced from existing fields – a remote area of through improved recovery measures. A Photo: Alexey Deryabin 23 Svalbard. huge potential exists for using enhanced oil recovery (EOR) techniques. Further details and the size of the vol- umes involved can be found in the resource PAGES report, which has been published at www. npd.no. NPD profile What is required to realise this value? Photo: Rune Solheim 12-22 Pressure from the NPD First, the companies must take investment has been crucial for decisions on projects which have already PAGE getting out the extra been identified. Halfway The first development stage on Johan Sverdrup has reached its midpoint. Hilde Second, the industry must collaborate Anita Arntsen (left) and Renate Eikeland are part of the workforce at Aker Stord, one of 20 resources in Snorre, to exploit existing infrastructure and adopt fabrication sites for the platforms. Photo: Monica Larsen 24 says Tomas Mørch. available technology. The NCS has been a laboratory for testing new technical solu- tions. It must now become a front runner in applying them. Our report on Barents Sea North-East More resources was published in May. New mapping of this Snorre Expansion will area has doubled the earlier estimate of yield almost 190 mil- resources for the whole Barents Sea. This lion extra barrels of report is also available on our website. PAGE oil – making this one of Our job is to maintain an overview of oil PAGE PAGE and gas resources across the whole NCS. So Norway’s biggest impro- we also map areas not open for petroleum Photo: Harald Pettersen/Statoil ved recovery projects. Photo: Sverre S Jarild 4 Photo: Monica Larsen 9 27 activities to provide a good factual basis for future decisions. Petroleum and It goes without saying that future opera- The interview Student optimism tions in Barents Sea North will be pursued in energy minister Terje Søviknes wants The downturn in applications for petro- accordance with the Petroleum Act and the to change what he calls the “bad guy” leum-related courses is flattening out decisions taken by the politicians. Our job is image the industry has acquired. as students take a brighter view of their Minerals to identify the potential. prospects. The search for metallic PAGE minerals in the world’s RESPONSIBLE PUBLISHER PRODUCTION NORWEGIAN CONTINENTAL ocean depths is under Norwegian Petroleum Directorate Printer: Kai Hansen SHELF Photo: Nils Rune Sandstå/NPD 28 way. P O Box 600 Paper: Arctic Volume 200/130 g www.npd.no/en/Publications NO-4003 Stavanger Print run Norwegian: 10 000 Norway Print run English: 1 500 FOLLOW US ON TWITTER Telephone: +47 51 87 60 00 www.twitter/oljedir E-mail: [email protected] LAYOUT NORWEGIAN Arne Bjørøen COVER PHOTO CONTINENTAL SHELF EDITORIAL TEAM Photo: Øyvind Sætre Bjørn Rasen, editor SUBSCRIPTIONS Immobile oil A JOURNAL FROM THE NORWEGIAN Astri Sivertsen www.npd.no.magazine A new study assesses PETROLEUM DIRECTORATE Bente Bergøy Free of charge methods which can NO 1 - 2017 Eldbjørg Vaage Melberg PAGE Rolf E Gooderham, English editor help to recover large VOLUME 14 amounts of residual oil Bente Nyland 33 on the NCS. director general
2 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 3 Out of the echo chamber A mood of light euphoria grips Terje Søviknes after his first trip offshore, when he has literally looked down on Norway’s oil wealth. That made a big impression on the new minister of Alliances. "People often find themselves petroleum and energy. in circumstances where they stay in their own echo chambers," says Terje Søviknes. “If the petroleum industry is to have the future I hope it gets, it must build alli- | Bente Bergøy and Sverre S Jarild (photos) ances with other social players.”
4 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 5 Technology represents the key to “We must balance the debate and a low-emission society in 2050 ”bad guy” image which the indus- get the facts across,” he empha- assumes that as much as 40 per try has acquired. reaching climate goals, not prohibitions sises. cent of the energy will come from ”We must get much cleverer fossil fuels. at relating value creation to things and restrictions. Perspectives ”If that’s the case, why which mean something for ordi- Søviknes points to the recent shouldn’t Norway also contribute? nary people – schools, care of the report on Perspectives for the energy We have a tradition of being a elderly, transport, health, police front runner, and emissions from and hospitals,” he says. he Progress Party politi- and oil companies, he has seen, He takes the reputational prob- transition. Investment needs for a low-carbon energy system from the our production are among the low- ”Oil revenues finance the cian says he is not often asked, listened and learnt about lem seriously. “We’re dependent on est in the world.” welfare state. Those working in to be found in his office. their work, challenges, expecta- recruiting skilled hands and wise International Energy Agency (IEA) and the International Renewable Although the trend is towards the petroleum sector used to be He prefers to be hands- tions and concerns. heads to continue developing the more renewables, oil and gas regarded as heroes, now they’re on, out in the field, where “If you’re going to have a full expertise base we’ve built up over Energy Agency (Irena). ”They’ve produced scenarios will continue to be produced. rogues. That’s extraordinary and Tthings are happening. understanding of the position, it’s 50 years. Norwegian gas can replace coal in unjust.” on what can be done about the “I’m so incredibly impressed important to meet people and be “This base is the really big asset the EU. The UK, for instance, has a He also finds the media debate by this industry,” he cries. “We’re hands-on where things are hap- – it’s the one which allows Norway world’s energy position to achieve the climate goals set in the Paris clear policy in this area to reduce is conducted between him as a world leader in so many areas pening,” he emphasises. to lie among the front runners for emissions. minister, a few politicians and the – subsea technology, rigs, clean He has always been keen on technological progress and right agreement,” he explains ”These agencies believe it’s In late April, Britain experi- environmental organisations – production … the social perspective. “Politicians in the lead within the oil and gas enced its first day without coal- not between the political parties “I can’t see how it’s possible can’t do it all. As council leader in sector.” important to invest in wind, solar and other renewable energy forms, fired energy since the industrial and the voters. ”That makes the to run all this, the platforms and Os, I often worked for tripartite revolution, and the government is exchanges a little rarefied,” he everything which happens far, far collaboration with industry and but underline that demand for oil Concerned and gas will remain high.” resolved to eliminate this source argues. beneath the seabed. It’s the ulti- volunteers. Søviknes admits to being worried by 2025. Asked to sum up the status of mate in engineering skill. It leaves “That’s a good model. Declining production from about the sharp drop in applica- existing fields means that the com- the NCS, Søviknes praises the job me gasping!” Cooperation with other players tions for petroleum-related cours- done by the oil companies and the Søviknes enthuses about is extremely important, not least panies must continue to explore Proud es. Few students mean it is only a and bring new discoveries on The minister is proud of Norway’s supplies sector in recent years. his helicopter ride out over the in the oil and gas industry. We matter of time before the teachers ”The industry has really got a Norwegian Sea to visit Deep Sea mustn’t get too shut off.” stream. achievements in the oil and gas go too – which would be stupid, ”The IEA/Irena scenario for sector, and wants to eliminate the grip in strengthening its competi- Stavanger. The Odfjell rig is drilling People often find themselves since the industry needs people in production wells on Maria at the in circumstances where they coming years. moment. stay in their own echo chambers, He also worries about attitudes This field will be produced Søviknes observes. That can be to oil among the young. “It’s super in an intricate interaction with secure and comfortable, but hardly that youngsters are involved with neighbours Kristin, Heidrun and forward-looking. and concerned about the climate, On the go. The minister is not often to be Åsgard, where the wellstream is to “If the petroleum industry is found in his office. He prefers to be out in and they’re undoubtedly more ide- the field. be piped to the first of these for to have the future I hope it gets, alistic than us older folk. processing. it must build alliances with other “But we must get across the Heidrun will deliver water for social players,” he emphasises. fact that it’s possible to have both. injection in the Maria reservoir, As the minister for Norway’s We can reach our climate targets while the processed oil is trans- largest and most important indus- – and explore for and produce oil ferred to Åsgard for storage and try, he has a responsibility for and gas.” offshore loading. Gas goes to ensuring that the value created He appreciates that youngsters Kårstø near Stavanger. benefits the whole nation – includ- cannot be reached through tradi- “Just imagine, the rig runs two ing future generations. tional channels such as TV, radio operations simultaneously – that’s In his view, the sector’s poor and newspapers. “Both politicians so efficient, full speed ahead,” reputation is undeserved. “It and the industry must get better says Søviknes. “Once the field’s on reflects the combination of a cou- at being where young people are, stream, nobody can see it. Ships ple of factors which emerged at and communicate more with then can sail right over the seabed facili- roughly the same time. there.” ties.” “After the oil price slump in Søviknes has taken one step He is a declared technological 2014, many participants in the through his initiative on establish- optimist. “Technology represents public debate seemed to think oil ing a youth panel, and is recruiting the key to reaching climate goals, revenues were no longer so impor- youngsters to help on the message not prohibitions and restrictions.” tant for Norway. There was much and the channels. talk about restructuring and the The most important mes- Travelled green shift.” sage the minister wants to get The minister has begun to settle Then came the Paris agree- across is that if there is one place in after 100 days in the job. He has ment and the big climate debate. where people can really make a travelled all over Norway, talking “The result in Norway has been difference for the climate, it is the to ordinary workers and company a very polarised discussion,” energy sector. executives. Søviknes says. “People are either And that holds particularly Visiting suppliers, technology for producing fossil energy, or they true for oil and gas. Technological enterprises, government agencies want to save the planet.” advances can have a huge impact.
6 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 7 tiveness. We’re constantly getting Campaign get the facts on the table in order reports that planned develop- ”Following the exploration cam- to secure a genuine political deci- ments are cheaper and drilling is paign in the Barents Sea this sum- sion on which areas are to opened, going faster.” mer will be extremely interesting,” which will be left closed and what He emphasises how important the minister emphasises. ”Much of the terms should be. Looking brighter it is that these savings last, and the attention in coming years will ”But the debate on what we that the industry has learnt. ”When be on these waters. should do with the Barents Sea the companies were hardly making ”The future lies in the far north. could become relevant long before money despite top oil prices, it was Two fields are on stream there after we’ve expected it,” Søviknes warns. Things seemed very bleak high time to reef the sails.” 40 years of exploration – Snøhvit ”If the Russians start to drill and The Conservative-Progress and Goliat. Alta/Gohta are now in make discoveries, we must take when Marie Hilander Party coalition has been fully the offing, with more searching to care of Norway’s interests. That we aware of the importance of giving come. That’s exciting.” will – the boundary treaty specifies Gjerde applied to study the industry access to new explora- He adds that the results of this collaboration over producing fields tion acreage to maintain activity year’s campaign will affect inter- with resources on both sides of the petroleum technology in on the NCS. est in the 2017 APA and the 24th dividing line.” 2015. “There wasn’t much Since it took office in 2013, 241 round. A window of opportunity production licences have been is open for boosting activity in the Busy positive feedback,” she awarded and consultations held on Barents Sea. The minister has a lot he wants to the blocks proposed for the 24th ”The job the NPD has done do, and is busy. He was recently admits. Today, she is licensing round. in mapping the resources is very dubbed Terje ”Full Speed Ahead” buoyant about her job The government has also important. More of this may be Søviknes in leading Oslo daily announced the 2017 awards in needed, and a political discus- Aftenposten – a label he is happy to prospects. predefined areas (APA) with a sub- sion will then begin on whether accept. stantial expansion of the acreage the time has come for an impact ”I’m a man who gives my all in on offer, particularly in the Barents assessment and a possible opening everything I do. I’ve won renewed | Alf Inge Molde and Monica Larsen (photos) Sea. process.” trust as council leader in Os four ”Big reserves still exist on the Søviknes emphasises that the times, and believe that has some- NCS,” Søviknes notes. ”The NPD Progress Party wants this to be thing to do with being committed has doubled its resource estimate achieved during the four-year life and decisive.” for the Barents Sea, which is excit- of the Storting (parliament) due to Asked what he has managed to ow chair of Petroil, the associa- ing in a longer perspective. It’s be elected this September. achieve during his first 100 days in tion for petroleum engineering important to get across that we He points out that Norway is his new job, his response is forth- students at the University of have assets to exploit for a long blessed with oil, gas, water and right: Stavanger (UiS), Gjerde got little time.” wind. The country has always had a Nparental encouragement when she chose ”The government’s been on The third success factor he debate over utilisation versus con- the offensive with the 2016 APA, this course. highlights is the change in the servation, and there is no reason and we’ll soon be announcing the Both her mother, a nurse, and her player mix on the NCS. Statoil for this to end. 24th round. I’ve otherwise sought father in the oil service business worried remains the heavy locomotive, but ”We must have that debate and to talk up the industry and to about the impact of the petroleum indus- companies such as Lundin, Aker BP apply the management knowledge boost optimism – both internally try downturn and thought nursing would and other smaller participants have we possess when deciding wheth- and among ordinary people. We be a much safer path to follow. contributed different perspectives er to open Barents Sea North for have an incredible lot to be proud Two years later, it is still too early to and new methods. petroleum operations.” of.” decide how sensible her decision has been. In his view, it is important to Several classmates are privately thinking of shifting to mechanical engineering. But Gjerde remains convinced that she picked the right option. Although the labour market in Norway’s petroleum sec- tor is by no means off the sick list, she feels Confident. Petroleum technology student improvements can be seen. Marie Hilander Gjerde at the University of “I’ve been in contact with a number of Stavanger is working hard to get the best We must balance possible marks, and has taken on the job of companies who’re taking a positive view. Petroil chair. She believes the job market will the debate and get Statoil is also launching a number of pro- look a lot better in two-three years. jects in the next two-three years. And the the facts across. retirement bulge facing the industry will
What happened to the heroes? The petroleum and energy minister wants to talk the industry up – its “rogue” image is undeserved, he says.
8 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 9 create vacancies. We’re going to be Upturn needed.” But the UiS is also seeing more applicants for the BSc in petroleum Vanished geology and the five-year MSc in More than 40 000 jobs have van- petroleum technology related to ished in Norway’s oil sector since industrial economics. 2014, and hardly a week has passed The biggest increase has been without new headlines on down- for the courses on offshore tech- sizing and gloomy prospects. nology, industrial technology and That outlook has also been operations management, where reflected in declining interest in numbers applying were up no less university-level petroleum stud- than 68.9 per cent. ies. After three years of falling Overall, petroleum- and off- enrolments, however, the decline shore-oriented MSc programmes appears to be flattening out. experienced a rise of 7.4 per cent. Overall, applications this year The UiS is also seeing an increase are down by a further 7.5 per cent in foreign applications. from 2016 for a three-year engi- Bø is hearing that changed neering BSc, and 16.2 per cent for acceptance criteria may be maritime subjects. But figures for reflected in other types of ques- a five-year engineering MSc have tions being asked in lectures than risen by 0.4 per cent. before, which also exposes a slight- Three years ago, the UiS had ly different starting point. four applicants for every place He nevertheless maintains that on its BSc courses in petroleum the quality of the petroleum cours- technology. Almost everyone who es and the students who graduate applies gets in today. is high. The star candidates are still Øysten Lund Bø, dean of the there. UiS science and technology faculty, However, he admits that new is pleased that the fall in petro- entrants collectively display a rath- leum engineering applications has er wider span of initial knowledge. slowed. They were down four per That poses demands for the UiS in cent from 2016. lifting the overall level during the period of study.
Secure Lise Lyngsnes Randeberg, president of the Norwegian Society of Graduate Technical and Scientific Professionals (Tekna), believes those who retire. We need renewal.” declined over the first quarter of He wishes that the oil sector Upturn. The University of Stavanger has have opted for petro- And this is more than talk, she 2017. would think more counter-cycli- recorded more applicants for its BSc in petroleum leum technology stud- maintains. After several years of Two factors appear to account cally. “Students who’ve graduated geology and five-year MSc study in petroleum technology related to industrial economics. ies can look forward to sharp growth in the number of for this – fewer redundancies in to the dole queue in recent years a secure career. cases related to downsizing and the oil and gas industry and more meet very high quality standards.” “Norway’s going restructuring, the union’s lawyers people securing a job, although to need petroleum are now dealing with more issues the NAV cannot say exactly where. Classroom expertise for a long relating to contracts of employ- “The signs are that they’re find- In any event, Gjerde still has three time to come,” she ment. The change has been par- ing work outside the oil and gas years in the classroom before she emphasises. “We are ticularly clear since Christmas. sector,” Sørbø says. “We know this has completed her BSc and MSc a world leader in this industry isn’t doing much recruit- courses and will be ready to look area, which must be Effect ment at the moment.” for work. maintained and further The same effect is being seen Like her fellow students, she is lar education and several years of developed. by Norway’s Labour and Welfare Sorry working hard to gain good marks experience. “At the same time, Service (NAV), reports Johannes Bø is confident of the job market – and hoping that voluntary posts “It makes me a bit nervous,” we face a change of Sørbø, senior adviser and labour facing students starting petroleum like chairing Petroil will count in she admits. “But I hope some generations as many of Optimist. Dean Øystein Lund Bø in the science and market expert there. courses this autumn. But he feels her favour. people will also see the favourable technology faculty at the University of Stavanger those who joined the For the first time in several sorry for those who fought for a Her dream is a job with Statoil, side of us new graduates – that wishes the oil industry was a bit readier to make a industry when it first years, the number of unemployed place when they were hard to get, but she knows she has to compete we’re positive and innovative. They commitment to young people – even in tough times. blossomed begin to engineers and ICT specialists has and who are now unemployed. with many others who have a simi- need young people, too.”
10 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 11 Building it on a big scale Work on the first development phase for the Johan Sverdrup field involves no less than 14 000 people at 20 different places around the world. Norwegian Continental Shelf has visited a couple of these sites. | Rune Solheim (text and photos)
Drone-eye view. The quarters platform for Johan Sverdrup is under construction here at Kværner Stord. While the biggest structures are inside the workshop on the left, the three covered modules in the foreground are also for this field. On the right, the Statoil-operated Njord platform is in for maintenance.
huge blue crane capable the workshop itself is currently Giants Åsgard A production and storage field – the control room – and pro- Activity of lifting more than 1 000 fabricating and outfitting the bot- Much offshore history has been ships. vide space for three helicopters on Johan Sverdrup is generating tonnes forms the gateway tom deck for the Johan Sverdrup made at this yard, including work But today’s focus is on Johan top. a high level of activity at Stord. to Kværner’s yard at Stord quarters facility. with a number of the giant struc- Sverdrup, the field which has One of these will be in a The topside being built there will southA of Bergen. Immediately The whole shop is mounted on boosted optimism on the NCS. hangar on stand-by for search and tures on the NCS such as Statfjord include the world’s largest offshore behind it towers the grey floater wheels and can moved aside as the A, Gullfaks A, B and C, Oseberg A Kværner and US engineer KBR are rescue missions across the whole accommodation unit to date. carrying the Njord platform top- structure grows. Other modules for and Troll A. building a topside with a nine- Utsira High area. And nine lifeboats With 560 berths, gym, cin- side, which has been towed in for the platform’s topside stand just Also on the reference list are storey accommodation block. will be available for the four field- ema and sick bay, this “marine upgrading. outside it. Snorre A and B, the Njord and This platform will also house centre platforms. hotel” incorporates a set of Located centrally on the site, Kristin facilities, and the Norne and the nerve centre for the whole modules being outfitted only 12 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 13 Top left Top right Outfitting. The topsides for the Johan Sverdrup quarters platform is starting to look like an offshore installation. Multidimensional. Hege Robberstad is a 3D modeller, creating detailed Forklift Yard worker Borowski Bartlomiej operates a forklift as he helps visualisations of the quarters platform at contractor Apply Leirvik. to build Johan Sverdrup at Kværner Stord.
Above left Above right Local spinoffs. “Building Johan Sverdrup has benefitted not only Systematic. Apply Leirvik has developed a special system to manage Kværner but also the whole Stord community,” says Edmund Skålnes, the accommodation block, report engineering leader Øystein Kvalvik construction manager at Kværner Stord. (left) and design coordinator Odd Peter Ørjasæter.
a few crane lengths away at and process platform jackets was expertise and ability to deliver, No headaches with good engineering work, Stories sub-contractor Apply Leirvik. completed in the late autumn of help to explain why it won. New technology often gives that’s given us positive start.” A few kilometres away, Apply Moreover, the support module 2016. Prefabrication and assem- “We were facing a period rise to headaches, cost over- Specifications and drawings are Leirvik is building six of 11 com- for the drilling platform is taking bly of these are well under way of reduced activity when the runs and delays for field devel- closely followed up, Lerøy explains. ponents for the accommoda- shape at Aibel’s yard in Haugesund at Verdal for delivery next year. Johan Sverdrup order was opments. But that is not the “Checking that everything’s been tion block, covering seven of about 60 kilometres further south. placed,” says Skålnes. “That case with Johan Sverdrup. done correctly is a huge job. its nine stories. The other two Kværner’s Verdal yard in Proud benefited not only us, but the The challenge here is not the “We have 70 000 sheets which are coming from Kværner. mid-Norway has the job of build- Construction manager Edmund whole Stord community.” known technology, but the scale of have to be checked against the Construction began in April ing the three largest of the four Skålnes at Kværner Stord is pleased The construction process has the project and the many elements tag number for each component. 2016, but preparations for tackling steel platform jackets under an and proud that the yard proved so far gone smoothly, reports being built separately which need It’s also very important that things the Johan Sverdrup job were initi- engineering, procurement and sufficiently competitive to win Trond Ove Lerøy, who is the to come together at the right time. arrive at the right time and place.” ated as early as 2012. Hook-up and construction (EPC) contract. fabrication contracts this big in client’s on-site supervisor. “Fortunately, we’re well on Skålnes adds that changes outfitting of Apply Leirvik’s mod- The heaviest and most an ever-tougher world market. “It’s a great strength that well- schedule and haven’t had any are not welcome. “These usually ules started in May, with delivery complicated jacket, intended The job is worth NOK 6.7 bil- known and tested components serious incidents,” says Skålnes. mean that we must take a step due to Kværner in October 2018. to support the riser platform, is lion to the Norwegian group. Its and building methods are being “Much of the necessary hard- back and amend both plans and The company has long experi- approaching completion and efforts to boost productivity and used. That both simplifies the ware was ordered even before methods, which presents extra ence of building offshore quarters will be delivered this summer. cut costs, combined with solid work and makes it more secure.” we landed the contract. Along challenges for fabrication.” modules, extending from the Design work for the drilling
14 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 15 3D model. The various modules forming the quarters platform topside. (Illustration: Apply Leirvik) Keeping it all Team. Construction manager Edmund Skålnes (right) at Kværner and Statoil’s site supervisor Trond Ove Lerøy are collaborating over the process of completing the Johan Sverdrup quarters platform. together
Statfjord field in 1976 to the Gina ters platform on a big screen. provided on the field. Construction work for Johan Sverdrup, the new giant North Krog development last year. He explains that specific The need to house as many Operator Statoil produced a requirements are set for hygiene, as 560 people on the platform Sea field, is ahead of schedule at the midpoint and could be rough design outline and then left ergonomics, lighting and noise will only arise occasionally, dur- it up to Apply Leirvik to fill in the where people will be present on ing maintenance turnarounds and NOK 26-27 billion cheaper than planned. Making sure things details. It is providing engineer- the platform, in addition to all the modification work. Normal field ing services as well as building the technical specifications. staffing will be about 220 people. stay that way could be a challenge. modules. The 11 modules are designed Although the steel jacket might | Rune Solheim (text and photo) The last two of the latter struc- to be hooked up very quickly. They look a little flimsy in relation to the tures are being constructed by add up to 14 500 square metres massive structure it has to support, Apply Emtunga, the fabricator’s of accommodation – the rough all the weight calculations are in alfway is a milestone,” tures on Yme and Brent D. Aibel’s Haugesund yard, this plat- Swedish subsidiary in Gothenburg. equivalent of two football pitches. order. accepts Trond Stokka “We’ve made pretty formida- form is scheduled for towout to The accommodation module Meling, Statoil’s technical ble technological preparations the field in the summer of 2018. Control Reversible is being constructed with the two head for this phase-one to ensure that this will go well,” The riser and process platforms “We’ve developed our own mile- The quarters platform will have 450 lowest stories in steel and the rest Hproject. “We’re entitled to acknowl- says Meling. “We also have a are under construction at the stone system, a project manage- cabins, and 110 of these are fitted in aluminium, which provides a edge it, but not to celebrate. whole month’s weather window Samsung yard in South Korea and ment model, to maintain detailed with a reversible bed. That allows weight saving of 1 000 tonnes. “Everyone knows that the chal- in summer – far more than the job set to sail for Norway next year and control of both engineering and shift workers to share a cabin while If the cranes and helideck are lenges could well arise in the sec- needs.” in 2019 respectively. fabrication from start to finish,” retaining their own personal berth. ignored, this offshore hotel looks ond half. We can celebrate when says Øystein Kvalvik. Each cabin measures 7.6 square a bit like the superstructure of a everything’s finally put in place.” Platforms Power Engineering leader for the metres, with the bed placed cross- cruise ship – with shiny aluminium Although the field is being The field installations will comprise A high-voltage direct current con- accommodation modules at Apply wise to give more sense of space. surfaces pierced by rows of cabin developed with known technol- four platforms, for drilling, risers, nection (HVDC) facility supplied Leirvik, he reports that 4 070 All these units are delivered ready- windows. ogy, some things have not been processing and quarters respec- by South Korea will be installed design documents and drawings built from Finland for immediate It then remains to be seen done before. That includes the tively. on the riser platform as part of for building and documentation assembly. whether the rest of the voyage first use of Pioneering Spirit – the Three large modules are due to delivering power from shore to the have been produced. Account has been taken of pos- will continue calmly towards the world’s largest heavy-lift vessel – be hooked up on the drilling plat- facilities. Design coordinator Odd Peter sible requirements for additional planned start of production in for offshore installation. form topside during September, Preparations for the trans- Ørjasæter calls up detailed three- accommodation capacity, with 2019. This ship is due to install the while others will be delivered by former station at Haugsneset, just dimensional drawings of the quar- mooring locations for three flotels topsides on three of the four Aibel’s yard in Thailand. to the east of the Kårstø terminal platforms under construction, With a drilling rig from the north of Stavanger, are well under although its experience in this area Nymo yard in Grimstad and the way. is limited to removing such struc- drilling support module from This installation will convert 16 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 17 Phase one. The chosen solution for the first development phase is a field centre with four specialised platforms for quar- ters, process, drilling and risers respectively. They will be linked by bridges. (Artist’s impression: Statoil)
Not at any cost. “We’ve achieved fairly dramatic cost cuts,” affirms Trond Stokka Meling, technical head of the Johan Sverdrup development. “A discussion has been under way in the Norwegian press on whether we’re putting too much pressure on the suppliers. But we’re not interested in bankrupt- ing them or undermining safety.” (Photo: Statoil)
alternating to direct current, with eliminates the need for big diesel Correcting anything out at sea is work because of a lack of capacity on permanent monitoring of the improve the recovery factor and the HVDC turning it back to alter- or gas-turbine generating sets on more expensive. in Norway. Johan Sverdrup reservoir with the extend the field’s commercial life. nating on arrival – a process which board. But boilers needed by the A challenge arose after a Palfinger provides another aid of four-dimensional seismic minimises power losses in trans- process plant usually run on waste bridge across an Italian motorway case in point, with an office in surveying. Fantastic mission from land. heat from the generators. collapsed. Driving heavy vehicles Bergen while manufacturing its This involves repeating three- Meling describes the economics of The process generates a In the first stage, this heat will over such structures was banned cranes in Poland. So the picture is dimensional surveys at regular Johan Sverdrup as fantastic. “When good deal of heat and radiation be provided by gas, with power for a while in northern Italy, mak- nuanced, Meling points out. intervals to check developments in sanctioning phase one, the bill was and therefore takes up a certain from shore taking over in the sec- ing it impossible to get equipment “The suppliers have looked at the formations once production is put at NOK 123 billion. We’re now amount of space. Johan Sverdrup ond phase. The quarters platform to the docks for shipping out. how they can be competitive in under way. down to NOK 97 billion. is to receive 100 megawatts from will also carry a diesel-driven emer- “We were locked in,” says an international market. They can While the cost of such sur- “We’ve achieved fairly dramatic shore. gency generator. Meling. “Fortunately, we found often compete on engineering and veillance has been included in cost cuts, and a discussion has roads which could be used and hook-up, but need to weld steel in the field’s plan for development been under way in the Norwegian Control Size sent the freight by river barge to other countries. and operation (PDO), it must be press on whether we’re putting The offshore control room will The challenge for the project is its the coast and onto the cargo ship.” “When the company is approved by the partners before too much pressure on the suppli- run all four field-centre platforms size. Everything must fit together Norwegian, we communicate 1 July. ers. (set to rise to five in the second even though construction has Share with its management here. That’s Meling notes that opportuni- “But we’re not interested in phase). These facilities will have a been pursued at 20 sites around Asked how much of the Johan clearly an advantage. In technical ties to acquire sub-surface data bankrupting them or undermin- combined staffing of about 280 the world. Sverdrup development is being terms, however, we’ve no grounds on an annual basis will provide ing safety. We take great heed of people. Meling underlines the impor- constructed in Norway, he says for saying that Norway does things increased understanding of reser- health, safety and the environ- In addition, the control room tance of information being con- it depends on how the domestic better than elsewhere as long as voir behaviour during production ment. A project isn’t a success if we will manage the subsea systems, a veyed in a precise manner and share is calculated. the specifications are met.” and water injection. suffer a serious incident. possible unstaffed wellhead instal- interpreted in the correct way. About 70 per cent of the “That in turn allows us to “Our positive experience is that lation, and the power supply facil- “All the equipment must work contracts have gone to compa- Construcion improve the planning of new we’re getting what we ordered, to ity on land at Haugsneset. when it comes offshore. Interfaces, nies with a Norwegian address. Around 14 000 people will be wells and methods for boosting the right quality and by and large Part of an organisation of design and construction have to be However, some of these are allo- employed on the Johan Sverdrup resource recovery. Our ambition on schedule, so that we don’t have about 130 people linked to the done well. The preconditions must cating part of the work to their project at peak, and the whole is to get out 70 per cent of the to spend heavily on repeating the field centre, the onshore opera- be the same at all the yards.” foreign branches. construction period involves proven hydrocarbons.” work.” tions centre will deploy real-time He recently visited a supplier An example is drilling platform 51 000 work years. But Meling is Operator Statoil and its part- data and expert tools for support in Poland providing seven cranes. contractor Aibel. It has an office in unsure how many of these are ners have a 50-year production and decision-making. Follow-up is important to ensure Oslo and a yard in Haugesund, but Norwegian. time frame, and need robust data Taking power from shore that they work properly offshore. is using its Thai facility for some A decision is due this summer to reduce uncertainty. That can 18 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 19 We took cores, analysed and tested. That was essential for acquiring a quick grasp of the local geology.
he southern part of this was formed 1.5 million years ago. area had been sporadically The discovery shows that oil-filling Age no barrier investigated by most of the has been very rapid and is still big companies since 1967,” under way. explainsT Rønnevik, former explora- Edvard Grieg comprises land- Hans Christen Rønnevik has tion manager at Lundin Norway. deposited Jurassic/Triassic sand- passed his 70th birthday and “This meant large amounts of stones and conglomerates with is no longer a full-time Lundin geological information were avail- relatively good properties. Such staffer, but remains active in able, which we were able to utilise reservoir rocks have not been the company’s geological team as the basis for a new interpreta- encountered before on the NCS. as an adviser. tion.” Wells drilled in Johan Sverdrup With the NPD from 1972- He adds that the subsequent have found very good reservoir 83, he then served as vice presi- discoveries on the Utsira High properties in the Upper, Middle dent for exploration at Saga Petroleum from 1984-99 before introduced broadband geophysics and Lower Jurassic sandstone helping to resurrect Det Norske to the NCS, and this methodology sequences deposited in shallow Oljeselskap in 2000. has since become standard there. seawater and along the shoreline. He joined Lundin Norway The first big find in the area on its creation in 2004. This was made in the Luno prospect Extensive company contributed to revi- during 2007, renamed Edvard “This discovery covers a very big talise activity on the NCS with Grieg when the plan for devel- area and called for extensive the Alvheim, Edvard Grieg, opment and operation (PDO) appraisal drilling,” says Rønnevik. Johan Sverdrup, Gohta and Alta received approval in 2012. “We took cores, analysed and discoveries in 2003, 2007, 2010, 2013 and 2014 respectively. With estimated recoverable tested. oil reserves exceeding 200 million How value can be created “That was essential for acquir- by understanding the geologi- Noted. The Utsira High discoveries are barrels (32 million standard cubic very significant for the further develop- ing a quick grasp of the local geol- cal images of the sub-surface is ment of specialist expertise in Norway’s metres), this discovery converted ogy and to provide a solid factual a question which continues to oil sector, believes Hans Christen the nearby Avaldsnes structure to basis for the models on which the concern Rønnevik. Rønnevik. He says they will “occupy a key a low-risk prospect. development plans were to be “Concepts, theories, tools place in efforts to reduce the crisis in the Lundin’s 16/2-6 (“Avaldsnes”) built.” and methods are always inad- industry and to secure jobs for the future.” well in 2010 discovered the giant equate,” he says. “Accepting (Archive photo: Emile Ashley) He emphasises that each field now called Johan Sverdrup. well has been very significant for that is essential for learning and Holding some 2.8 billion barrels amending and adjusting the mod- new value creation. of oil, its peak daily output could els. A crucial factor is that the peo- “Concepts are created by geotechnical integration of reach 660 000 barrels. ple who formulated the hypothe- people ahead of mathematical ses were also involved in updating modelling. Reality is revealed Concept during the operational work. more through activity than by Rønnevik explains that the explo- “Putting together technically predictions.” Getting to the ration concept for Utsira High diverse teams of people with the South was a big accumulation with ability and commitment to reach a oil zone 40-50 metres thick under a collective result is important,” a gas cap less than 1 950 metres Rønnevik emphasises. bottom of it beneath sea level. “Operational activity must The Edvard Grieg and Johan rest on fact-based learning and “Integrating all available data to detect possible degrees of Sverdrup discoveries have shown steady improvements in practice. oil/water contacts down towards Relationships between the people freedom for formulating new hypotheses was the key to this level. They have no gas cap involved are crucial.” and are thereby undersaturated. He says that the Utsira High success,” says Hans Christen Rønnevik. This approach allowed However, the level of under- discoveries are very significant for saturation in the Johan Sverdrup the further development of spe- him to spot the geological potential of the Utsira High in the crude is considerably greater than cialist expertise in Norway’s oil sec- North Sea. for the genetically similar oil in the tor. They will “occupy a key place Edvard Grieg formation. in efforts to reduce the crisis in the Predrilling analysis indicated industry and to secure jobs for the | Alice Ølberg Bore that the Johan Sverdrup structure future.”
20 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 21 ROCKSHOT
Sandstone on Wilhelmøya
Facts about Johan Sverdrup
• Oil field on the Utsira High in • Reservoir depth is about 1 900 stones originating from the the Norwegian North Sea, 40 metres. basement high in Utsira High kilometres south of Grane and South. The remainder lies in 65 kilometres north-east of • Covers about 200 square kilo- the Statfjord and Vestland Sleipner. metres. Group as well as in Viking Group spiculites. Oil has also Chosen solution for the first • Scheduled to come on stream • been proven in Zechstein car- development stage is a field on 1 December 2019. bonates. centre with four dedicated • 70 per cent of the contracts platforms for quarters, pro- • Water injection will be utilised awarded to companies with a cessing, drilling and risers, all as pressure support and gas Norwegian address. linked by bridges. lift in the production wells, along with other measures Profitable at an oil price as low Drilling platform with 48 well • • for improving oil recovery. as USD 20 per barrel. slots is designed for simultane- Producers will be placed high | Text and photo: Alexey Deryabin ous drilling, well intervention in the thickest parts of the • Will yield NOK 1 350 billion in and production. revenues over a 50-year pro- reservoirs, with injection wells “Where have these sand grains These sediments belong to ducing life. • Power from shore will be used close to the oil/water contact. come from and how did they turn the Svenskøya formation and were throughout the field’s produc- Producers and injectors are into rock,” is the question inquisi- deposited in a shallow sea around • Tax revenues will total USD 670 ing life. Phase two, due on four-five kilometres apart. tive geologists ask themselves 200 million years ago. The cliff has billion. stream in 2022, includes power when they look at sandstone out- some horizontal layers at its base, • Stabilised oil travels from the crops. overlain by strata formed in a near- Peak daily production will be from shore for other develop- • riser platform to the Mongstad NPD geologist Andreas shore deposition environment. 440 000 barrels (70 000 scm) ments in the Utsira High area. terminal near Bergen through Bjørnestad is seen here on Sandstone is fairly unconsoli- of oil and six million scm of gas • Oil resources being developed a new pipeline tied into rock Wilhelmøya – a remote part of the dated and can easily be scratched for phase one, and 660 000 in phase one lie in continu- caverns. Gas goes from the Svalbard archipelago where rocks with a fingernail. Some fragments barrels (105 000 scm) plus 10 ous Upper Triassic and Lower same platform to the Kårstø analogous to the sandstone reser- of fossile trees and bits of coal can million scm for the full field. Cretaceous sandstone reser- terminal north of Stavanger voirs on the NCS can be studied. be found at this location. Wilhelmøya, Svalbard. (Illustration: Norwegian Polar Institute) • Water depth on the field is voirs. However, the bulk of via a new pipeline tied into the about 110 metres. the crude is found in Upper rich-gas arm of the Statpipe Jurassic intra-Draupne sand- system west of Karmøy island.
22 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 23 Patience is a virtue Working with oil and gas calls for long-term thinking – and endurance. Tomas Mørch’s first job when he joined the NPD in 1992 was to produ- ce reservoir models for Snorre. He is still keeping an eye on this North Sea field.
| Bjørn Rasen and Monica Larsen (photos)
ll the signs are that a “Sanction for the new solution what Snorre looks like,” he says. decision on the Snorre would be a victory for us. It provides “These analogues at Ainsa are Expansion project will the same level of resource utilisa- used in the models we produce to be taken before the end tion and as many wells as a platform improve our understanding of the of this year by operator – with lower costs and improved field.” AStatoil and its partners. profitability.” Mørch calculates that he and They are due to submit a plan Where does this resoluteness Lundschien have given courses in for development and operation stem from? The spark was ignited this Spanish location more than 30 (PDO) which calls for the installa- back in 1992 when Mørch and col- times – and will be heading down tion of six or seven large subsea league Bjørn Anders Lundschien again in September. templates providing up to 28 new produced reservoir models for “You get an insight into what well slots. Snorre. the reservoir looks like, and can “That could allow Snorre to stay Their aim was to determine learn how wells should be placed on stream until well after 2040 – 30 whether water alternating gas and oil recovered. That’s useful years beyond the original PDO fore- (WAG) injection could drive out when each well costs several hun- cast,” says Mørch, who is an assis- more oil. The pair wrote a paper on dred million kroner.” tant director for development and this issue which they presented at He points out that advances in operations. seminars. drilling technology have helped a “Resource extraction will That led in turn to a good dia- lot. “These include horizontal wells, increase by at least about 190 mil- logue with Saga Petroleum, the well completion, and guiding gas lion barrels [30 million standard then Snorre operator, which had and water in the reservoir zones to cubic metres] of oil – equivalent to a reached other conclusions in its where they do best at driving oil to Goliat field.” WAG study. Mørch says the NPD the production wells. model fitted the actual outcome. “More wells have been drilled Fantastic on Snorre than anyone could have He describes Snorre as a “fantas- Difficult imagined when the field came on tic journey”, with its estimated Qualified as a reservoir engineer, he stream in 1992.” resources more than doubled since has continued to work with Snorre the start. “This makes it one of the through various roles at the NPD Battles biggest improved recovery projects and explains that its reservoir is dif- Tough battles have been fought on the NCS. It remains among the ficult. over Snorre in meeting rooms at the Norwegian fields with the most Many solutions have been pro- operator and the NPD. But Mørch remaining oil.” posed to improve recovery from nevertheless describes the dialogue The NPD earlier believed that the field, which lies at a depth of as good. a third platform would be needed 2 000-2 500 metres beneath the “Positive collaboration with on Snorre, but this became “finan- seabed. Statoil as the present operator and cially demanding” after oil prices The reservoir comprises Jurassic the other licensees mean we have slumped. and Triassic riverine deposits from jointly arrived at good solutions. Many people have described around 200 million years ago, and “We’ve made it clear through- Doubling. Tomas Mørch, an assistant director for development and opera- the abandonment of the platform covers roughly 10 by 25 kilometres. out what we think and expect. tions in the NPD, describes Snorre as “a concept as a loss of prestige for the Mørch and his colleagues have Unambiguous signals have been fantastic journey,” with a doubling in its NPD, but Mørch rejects that view. also studied this formation at close given and conditions set on what estimated resources. “This makes it one “Our most important considera- hand a number of times by visit- we consider prudent recovery.” of the biggest improved recovery projects tion is – and has always been – to ing Ainsa in the Spanish Pyrenees, Generally speaking, the broad on the NCS.” achieve a solution which takes care where it is exposed to the light of picture is a battle over investment of the big resource potential on the day. cash and with senior management field. In other words, more wells. “You can walk around and see in big groups who believe they can
24 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 25 Force. “We’re a driv- ing force for getting Saga continues out even more oil,” says Tomas Mørch, an assistant director for development and Snorre was originally expected to be shut down three-four years ago. operations in the NPD. The government is now awaiting new plans to extend the producing life of this North Sea field until 2040 or beyond.
| Bjørn Rasen
The Snorre reservoir is regarded “We’ve made it as complex, and has given many clear throughout what an expert headaches since its we think and expect. discovery in 1979. Developing the field has been difficult and excit- Unambiguous signals ing, with three operators – Saga have been given and Petroleum, Norsk Hydro and now Statoil – and much conflict. Big volumes. The conditions set on what forthcoming Snorre we consider prudent But all the discussions and Expansion develop- disputes resulted in calculations ment will boost recovery recovery.” and plans which have more than from the field by almost doubled estimated reserves since 190 million barrels – production began in 1992. equivalent to reserves The original plan for develop- in the Goliat field in the Barents Sea. (Photo: ment and operation (PDO) put Statoil/Harald Pettersen) recoverable oil at almost 750 mil- lion barrels (119 million standard cubic metres). the northern part of the field or abandoned and the solution will Steady drilling of new wells installing more templates on the now be a big development with has helped to boost that figure to seabed. six or seven templates tied back to just over 1.7 billion barrels, and the But neither course was chosen. Snorre A to provide capacity for up new PDO due in late 2017 should Instead, the Snorre B semi-sub- to 28 new wells. boost this above 1.9 billion. That mersible came on stream in 2001. While a total of 93 wells were makes Snorre unique in improved In 2010-11, Statoil – now the opera- originally planned for the field, recovery terms. tor – proposed installing just one more than 120 production and Saga’s initial PDO expected template in the north. injection wells have actually been get a better return elsewhere than he is currently responsible for the A somewhat overeager commit- production to cease in 2012-14. As drilled so far. the NCS. Barents Sea. ment also brought Mørch into local with so many Norwegian fields, Bigger It is no secret that the com- “That’s their job, but they also Earlier jobs include assessing politics in Randaberg local authority however, the Snorre operator This would improve recovery, but panies and the government have have a clear responsibility to utilise players who want to enter the NCS, outside Stavanger, where he sits on and licensees have learnt more, the government felt a much big- been at odds over the best way to Norwegian resources to the full,” project coordination for a number various committees and is an alter- acquired better technology, ger solution should be considered. manage the Snorre resources, with emphasises Mørch. “Our job is to of development projects, and area nate council member. become familiar with the sub- Simply “skimming the cream” the authorities largely relying on objective arguments. manage Norway’s oil and gas. studies to persuade companies to His inability to keep quiet drew surface and identified new oppor- did not meet the Petroleum Act’s But they have also turned to “Pursuant to the Petroleum Act, cooperate across licences. him into the Christian Democrats. tunities. requirement that all commercially stronger measures by setting con- all profitable resources must be His knowledge of the NCS He told the politicians that Randa Saga applied for only one oper- profitable resources are recovered. ditions for the companies, which recovered. The government won’t is also applied internationally berg was the local authority in the atorship during Norway’s eighth A Snorre C platform was cho- have been dependent on getting allow the companies simply to skim through the Norwegian Agency for region which paid most in road tolls licensing round in 1983, covering sen as a third concept in 2013 and the production licence extended. the cream.” Development Cooperation (Norad). for the smallest return. “That did it.” block 34/7 in the North Sea west of gave birth to the Snorre 2040 pro- That is because Snorre was He believes that the NPD’s The Oil for Development pro- Social issues interest him. He the Sogne Fjord. ject. Then industry costs rose as oil initially expected to have a much encouragement has been crucial gramme supports other countries in wants tax revenues to provide the It secured that job, but on con- prices plunged. It was back to the shorter producing life – and the in ensuring that the additional achieving the best management of largest possible value creation for dition that it joined forces with an drawing board. government has exploited this resources in Snorre and elsewhere their petroleum resources. society. “And that also applies to oil experienced oil company to act as Few fields on the NCS, if any, opportunity to get progress and are recovered. But Snorre has been his big- issues.” guarantor for the selected devel- have probably occasioned more the necessary project decisions. “These developments involve gest single involvement – so much His fixed term as an assistant opment solution. The choice fell on meetings between operator, licen- These commitments have major capital spending, to be sure. so that colleagues seldom succeed director expires this autumn – he is Esso Norge. sees and government than Snorre. been adopted at the same time as But such investment pays off – with in finding holes in what he knows actually on overtime. “I’m looking A single installation was origi- Ministry, cabinet and Storting (par- Snorre’s operational regularity has interest.” about the field and its history. forward to new opportunities in the nally proposed, and Saga secured liament) know it well. steadily improved in recent years. In what he describes as “weak NPD, and will certainly work with acceptance for the Snorre A An important milestone was The latest temporary licence Portfolio moments when I got a bit con- vigour.” tension-leg platform (TLP) tied to a reached in the late autumn of 2016, extension expires in June 2018, and Mørch has not worked full-time fused,” he has actually had bigger At the same time, he will be subsea template. when the licensees resolved to a new PDO must be approved by on Snorre – few NPD staffers stick problems remembering family letting go of Snorre. “That’ll be like Two options were initially in continue the project under its new then. If it is, the two licences cover- solely with one task or project. His birthdays and his own wedding a divorce, and one that leaves me line for the next phase – either name of Snorre Expansion. ing Snorre will be extended. portfolio extends much wider, and anniversary. with a heavy heart.” redeploying the A unit to produce The platform concept has been
26 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 27 Seabed search for metals surging ahead
| Harald Brekke, senior geologist, NPD Parts of the international ocean floor cov- ered by exploration contracts. Areas with manganese nodules, manganese crusts and sulphides are framed by thick lines in blue, green and red respectively. The thin yellow and pink lines show the 200-nau- tical-mile boundaries of the coastal states and their proposed continental shelf boundaries respectively.
Contracts to explore for manganese modules Contracts to explore for manganese crusts Contracts to explore for sulphides
coastal state controls the resources from land, where exploring for cerium, zirconium and rare earth Exploring for minerals on the ocean floor has been under way on and under its whole continen- other types of resources could be elements (REEs). They grow as lam- in international waters for more than 15 years. Interest in these tal margin – even where this is relevant. inated deposits on bare bedrock extends further than 200 nautical exposed at the seabed in water resources is also growing in Norway. miles from land. Quantities depths of 1 500-3 000 metres. The convention defines this Found on soft seabeds in the deep Sulphides primarily comprise he presence of metallic key driving force behind negotia- eral deposit. area of national jurisdiction as the ocean, manganese nodules contain lead, zinc, copper, cobalt, gold and seabed minerals in the tions on the UN International Law These are manganese nodules, coastal state’s continental shelf – in large amounts of manganese and silver, and are linked to hot springs world’s oceans has long of the Sea treaty in 1973-82, which manganese crusts and sulphides. other words, a legal rather than sci- iron with smaller quantities of cop- in volcanic spreading ridges been known. In some areas, now regulates the rights to exploit Each of them in turn contains a entific definition of the term. per, nickel, cobalt, titanium and beneath the oceans where “black theseT accumulations are of a size them. number of metallic elements and It means that the NCS is not smokers” form. platinum. which may make them commercial A total of 27 active exploration lies in water depths of 1 500-6 000 confined to the relatively shallow Manganese crusts also con- These vents continue to spew – and thus to be regarded as ore contracts have been awarded for metres. areas where oil and gas are found. sist largely of manganese and out hot material for several thou- deposits. international sea floor areas, split Under the UN Convention It also includes waters several iron, plus titanium, cobalt, nickel, sand years before dying out and These seabed resources were a between the three types of min- on the Law of the Sea (Unclos), a thousand metres deep and far leaving behind mounds which con- 28 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 29 gravel heaps, these are located Commercial along the volcanic Mohns Ridge Deep resources. The area showing The question now is whether these manganese crust on the Vøring Spur, between Jan Mayen and Bear minerals are found somewhere on For the common where samples were acquired in 2013. Island and northwards on the Norway’s continental shelves in good Knipovich Ridge. such quantities and of such qual- Samples have since been taken ity that mining them could be The UN Convention on the from a number of sulphide depos- commercial. A lot more work and Law of the Sea (Unclos) its and manganese crusts while investigation is needed to provide specifies that resources on the international seabed belong mapping the Norwegian Sea in a a reliable answer. to all humankind. According long-running research partnership To get the ball rolling, the NPD to the treaty, the International between the UiB and the NPD. has carried out an initial series of Seabed Authority (ISA) is This is part of the university’s chemical analyses of thick manga- responsible for managing internationally acclaimed study nese crusts on steep slopes of the these assets. of the volcanic processes leading Jan Mayen Ridge and the Vøring With its secretariat in to sulphide deposits, and of their Spur. Kingston, Jamaica, this agency unique fauna. These have revealed interest- comprises all the Unclos Where the NPD is concerned, ing differences compared with signatory states. Norway is the work is part of its general map- such deposits in the rest of the represented on the ISA coun- ping of resources on the NCS – Atlantic and in the Pacific. cil through the Ministry of which forms one of its main duties. Manganese crusts in the Foreign Affairs. In addition, the council’s The Norwegian University of Norwegian Sea fall into two groups technical and legal commis- Science and Technology (NTNU) in terms of their lanthanide con- sion (TLC) has a Norwegian tain the bulk of the sulphide ore to be running out. with the contractors originally has also recently begun work on tent. One has twice the amount member – previously from the resources. They will last for only 40 years expected to convert subsequently seabed minerals, making its own found in Pacific and other Atlantic Geological Survey of Norway at today’s level of consumption, to a production phase. That has investigations of the sulphide sources, the other has less. (NGU), and currently from the Sought but demand is expected to rise not happened. deposits identified by the UiB. Both categories contain sub- NPD. Norway’s continental shelf Companies or institutions Such resources have been sought substantially in the next few years Instead, all seven of the pio- stantially more lithium (20-80 areas are expected to contain man- seeking exclusive rights to in the international parts of the in response to green technology neer contracts have been given a times as much) and scandium ganese crusts in parts of the deep explore for and/or produce ocean seabed for more than 15 needs. five-year extension. At the same (four-seven times). These are inter- That gives a much shorter time, the ISA is working on regula- Norwegian Sea and around the esting “green” metals. seabed resources in interna- years under contracts awarded by tional waters must apply to timeframe for identifying further tions to govern extraction. Yermak Plateau in the Arctic Ocean The group with a high lantha- the International Seabed Authority the ISA. and Bouvet Island in the South nide content also has a greater (ISA). supplies. In that context, the USGS Such applications have to Atlantic. The first of these areas went has put global copper resources in First proportion of yttrium, and is there- be backed by the formal sup- On the other hand, manganese to seven pioneering investors in manganese nodules at about 700 Production of minerals from inter- fore richer in the whole series of port of the applicant’s govern- nodules are not likely to exist in the 1990s, but their contracts only million tonnes – roughly equal to national waters could begin during REEs. ment. The rights are regulated these waters, with the possible came into force in 2001 when current land-based reserves. the next decade, with manganese These findings are extremely under a contract with the ISA. exception of the areas around exploration regulations for manga- While the USGS has not pub- nodules set to be the first target. interesting. The question now is Bouvet Island. nese modules were put in place. lished figures for copper resources Long before then, however, why these chemical characteristics Little happened until 2012, in deep-ocean sulphides, others Canada’s Nautilus company is likely when the number of applications have put them at less than a 10th to start output from the Solwara 1 for the contracts suddenly rose of the USGS forecast for manga- sulphide ore field in 1 700 metres substantially and remained stable nese nodules – probably a very of water off Papua New Guinea’s Metal content in manganese crusts from the Norwegian Sea compared with the Pacific. for the next three-four years. conservative estimate. continental shelf. The jump in the number of The mining equipment has applications coincided with the Exploration already been designed and built, completion of the regulations gov- Most of the contractors involved and a production ship will be ready Chemical analyses of a number of metal- erning the search for sulphides and with the 27 active contracts are in 2019. This activity could have lic elements in manganese crust samples manganese crusts. state-owned institutions, such great influence on the industry’s from the Norwegian Sea compared with average values in the north-western Pacific. It also occurred at a time when as France’s Ifremer and BGR of development elsewhere. The Norwegian Sea samples fall into two China was becoming the monopo- Germany. groups, as described in the article. ly supplier of a number of strategic Private companies have also Present minerals which are important for joined the hunt in recent years, Where the NCS is concerned, introducing “green” technology. including UK Seabed Minerals, seabed minerals are known to Manganese crusts are expect- Belgium’s G-Tec Sea Minerals and be present in deep parts of the ed to be a future source of such Keppel from Singapore. Norwegian Sea. The University of strategically important metals, All contractors must have Bergen (UiB) found black smokers including REEs. official support from their own there more than a decade ago. government, and 20 countries are Drawing in part on the NPD’s Copper currently backing exploration for large multibeam bathymetric data Moreover, the world’s copper these minerals. Five are developing set, acquired for boundary map- reserves on land – put at roughly countries – small island states in ping, the university has identified a 720 million tonnes by the US Asia and the Pacific. number of sulphide deposits. Geological Service (USGS) – appear The contracts run for 15 years, Including both smokers and 30 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 31 have arisen and how this knowl- The government is therefore Norway’s qualifications for edge can be used for continued drafting new and modern legal repeating this success have not mapping of the quality and extent provisions governing mineral diminished, even if it now has Positive prospects for of the resources. exploration on and exploitation of fewer shipyards. Its expertise on Similar studies are also needed the NCS. These are currently the maritime technology has devel- for the sulphide deposits, which subject of a public consultation. oped further, and the country is a producing more include testing methods for world leader for industry, research recording various types of data Value and education in this area. and sampling techniques. The position today is roughly the In addition come 50 years of same as when oil and gas explora- experience in all aspects of marine A very significant potential for enhanced oil recovery (EOR) on Reliable tion began on the NCS. What has geological mapping and manage- Only when good progress has made the petroleum industry a ment of the continental shelf’s the NCS has been identified by a recent technical screening been made here will it be possible big success in Norway is that these resources. study of various available technologies. to provide reliable estimates of the resources have been converted So Norway does not need resources involved. into value for the whole society. to build up much in the way of Good management also From the start, it has been clear additional structures to look after requires that such calculations that the state owns the petroleum the possible new resources which come from responsible institutions resources and will manage them might exist in the ocean depths. Performed by experts from gases used are hydrocarbons, surfactant compounds which
committed to recognised stand- for the benefit of the entire popu- London’s Imperial College, this CO2 or nitrogen (or nitrogen-rich reduce interfacial tension with ards for reporting resource figures. lation. The original Norwegian version work addressed which EOR pro- flue gas). Injected gas may be oil and alter wettability. Both This is crucial for possible future The country also had a ship- of this article has previously cesses would be most suitable for miscible – where the gas and oil these outcomes can mobilise decisions by both government and building industry and world-class appeared in the GEO geology the NCS and what incremental dissolve in each other to create a more oil from the pore spaces. the private sector. maritime technology expertise. journal. improvement could be achieved. more mobile fluid – or immisci- • Polymer flooding. Water- Although a number of results Combined with legislation and The study compared seven ble, with the oil and gas remain- soluble polymers added to are available, little exploration for statutory regulations, this know- potential approaches with condi- ing separate phases. injection water increase its minerals has taken place on the how was crucial in managing the tions in a number of Norwegian Both miscible and immiscible viscosity and thereby improve NCS. Nor does current legislation resources and the revenues they offshore reservoirs to determine injection are usually imple- water sweep through the reser- take account of such activity. yielded. how appropriate each of them mented in alternation with slugs voir. would be for the respective forma- of water. Such water alternating • Surfactant flooding. Surfactant tions. gas (WAG) processes are more added to injected water alters effective at producing oil, since the wetting state of the rock and High the water improves gas sweep reduces oil-water interfacial ten- The recovery factor - or the pro- through the reservoir. sion, thereby mobilising more portion of oil originally in place Hydrocarbon gas injection has oil from the pores. extracted from fields on the NCS - already been used successfully • Low salinity flooding. Oil averages 47 per cent, which is high on the NCS (in Statfjord and recovery during waterflooding Oseberg, for example). CO injec- can be improved by lowering compared with average global 2 figures of slightly less than 40 per tion has the added attraction the total salinity of injected that some of the gas will remain water to less than 5 000 parts cent. Various technologies can be in the sub-surface permanently per million (ppm), and thereby deployed to enhance this recovery and thereby contribute to car- making the rock more water- factor even further, and the follow- bon capture and storage (CCS). wet. ing approaches have been used in • Alkaline flooding. Alkaline sub- • Surfactant/polymer and low- or proposed for oil fields globally. stances added to injected water salinity/polymer flooding. • Gas injection. The principal react with the oil to produce In these processes, surfactant
Low increment Mid increment High increment 320320 MscmMSm3 592592 MscmMSm3 860860 MSmMscm3 Low salinity/polymer
CO22 miscible/WAG HC miscible gas/WAG
Low salinity
Surfactant/polymer
Gels
Alkaline flooding Anticipated extent of seabed minerals on the NCS.
32 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 33 Low salinity water in combination with polymer Miscible WAG with CO or hydrocarbon gas can be seen, and these could have Possibility for several EOR methods important implications for econo- mies of scale and injectant supply. The figure on page 34 shows two areas where the same EOR method is the top opportunity for all the fields within them. Other EOR processes (low salin- ity, gels, alkaline flooding) are via- ble for niche conditions in certain fields. While low-salinity flooding, for example, is not as effective with- out added polymer, it is viable on fields which are either too hot for polymer deployment or have very low-viscosity oil where polymer would add no benefit. Gels and thermally activated polymers are viable in very mature fields to improve sweep and con- trol water production.
Factors All the fields in the study have some EOR potential. The amount of incremental recovery for a spe- or low-salinity flooding (which screened using the criteria above outcomes based on an estimated cific field depends on two factors improves microscopic displace- with the aid of a specially con- technical potential of 320-860 mil- – first, the existence of an EOR pro- ment efficiency) is augmented structed software toolkit. lion scm. The NCS clearly contains cess which is fully optimal for that by adding polymer to improve a very significant EOR potential field with respect to its screening injected water sweep. Effectiveness (see figure on page 33). criteria and, second, the remaining • Gels and thermally activated Viable EOR processes were field oil in place. polymers (TAP). These improve assigned recovery increments as Applicable The amount of remaining oil, sweep by shutting off specific a function of the generic effec- Four EOR processes are widely in turn, depends on the initial oil water flow paths close to pro- tiveness of the recovery process applicable and have mid-case tech- in place and the amount produced ducer or injection wells (gels), or derived from global EOR project nical potential recovery increments from the field so far. deeper in the reservoir (TAP). data, a suitability score and the of over 40 million scm. Each of these EOR processes field oil in place. • Low salinity/polymer offers the Potential has specific envelopes of condi- The suitability score quantifies largest large potential incre- This screening analysis gives an tions within which they will per- the applicability of a given EOR ment, mainly from fields in the indication of the technical poten- form optimally, or outside which process in a specified field. These Utsira High and Tampen areas tial for EOR. The next steps are to they will not work at all. scores were generated by the of the North Sea. apply rigorous operational, com- In the current study, 53 reser- screening toolkit using the tech- • Surfactant/polymer suits simi- mercial and environmental screen- voirs and segments were evaluated nical criteria, weighted for impor- lar fields, but only performs ing criteria to determine more in 27 fields, using such screening tance. better than low salinity/poly- accurately the size and location of criteria as lithology, depth, pres- They vary between 0 and 1, mer in a few fields from the the practical potential. sure, temperature, oil API gravity, where a score of zero means that Tampen area and the Halten The study recommends that viscosity, oil acidity, oil wetting the process is not viable and one Bank in the Norwegian Sea. the current work be followed up behaviour, and reservoir porosity means the process is optimal for • CO2 injection is promising in by a gap analysis to determine the and permeability. that field. EOR processes with a fields where this gas is expect- main barriers to implementing EOR Reservoir thickness, fractur- zero score are assigned a zero ed to be miscible at reservoir processes and an in-depth analysis ing, heterogeneity, clay content, recovery increment. conditions. These are mainly of the most promising fields using clay type, formation water salinity, The EOR potential was estimat- the chalk fields in the greater a reservoir technical limits type of injection water salinity, remaining ed as the recovery increment for Ekofisk area and fields in the approach. oil and current recovery process the top EOR process in each field Tampen area. Further research may also be were also taken into account. – in other words, the one with the • Hydrocarbon gas injection/ needed to develop some of these These screening criteria cover largest recovery increment. WAG is potentially viable in processes for the more testing a wider range than those used in When applied across all 27 many fields, and is already the conditions found in certain of the other published studies, which fields studied, that gives an EOR most widely deployed EOR offshore fields, and to investigate thereby enhances the sensitivity of potential of 590 million standard process in the North Sea. the potential synergies between the method. Reservoir data con- cubic metres (scm). This is the Clear geographic trends for EOR processes and CCS. tributed by field operators were mid value in a range of possible the applicability of EOR processes 34 | NORWEGIAN CONTINENTAL SHELF 1-2017 1-2017 NORWEGIAN CONTINENTAL SHELF | 35 Return address: Norwegian Petroleum Directorate P O Box 600, NO-4003 Stavanger, Norway
PortoPorto betalt vedved innleveringeninnleveringen P.P.P.P. Norge/ NorvègeNorvège B-blad
OPENING VIEW Introduction Big opportunities on Value the NCS
Resource accounts for the future More than half left
Technical potential New resource report for fields Even more to gain and discoveries Recovery Much to be done Available at
Cessation http://resourcereport2017.npd.no Turning every stone
The NPD’s role Maximising value for society
ISSN: 1504-1468 www.npd.no
36 | NORWEGIAN CONTINENTAL SHELF 1-2017