From WorldWide to Arctic, challenges and risk

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1 Resource exploration under extreme Arctic conditions Morten Mejlænder-Larsen, Director Arctic Operations

2 Content Challenges Arctic Risk Class Rules and Notations today International Rules and Notations Winterization 2

3 There are plenty of opportunities for value creation in the Arctic ocean Minerals Tourism Fisheries Oil and gas Transportation

4 Arctic Projects Beaufort Sea Trans- Polar NSR Sakhalin Norilsk Baffinland Yamal Greenland W Prirazlomnoye Varandey Greenland E Shtokman Murmansk 4

5 Arctic Activities, Offshore and 5

6 Maritime Transportation and Operations 6

7 From open waters to Arctic Qualify new and existing technology for the Arctic 7

8 Challenges that will influence on the operational risk in the Arctic. 8

9 fog. 9

10 24 hours darkness. 10

11 Challenges 11

12 12

13 13

14 Icing Ref. Winter navigation on the river and gulf of St Lawrence

15 Low temperatures, snow, wind 15

16 ICE IS CHARACTERIZED BY: THICKNESS CONCENTRATION FLOE SIZE RIDGES PHYSICAL AND MECHANICAL PROPERTIES 16

17 ICE IS CHARACTERIZED BY: THICKNESS CONCENTRATION FLOE SIZE RIDGES PHYSICAL AND MECHANICAL PROPERTIES 17 Photo: Aker Arctic

18 Challenging ice conditions 18

19 Challenges human factors Extreme low temperatures 24 hours darkness Noise and vibrations in ice Human Fatigue 19

20 ..from Caribbean to Arctic.. 20

21 Escape, Evacuation and Rescue (EER) Ref. Frank G. Bercha

22 Not only technical requirements Ships fit for Purpose People fit for Purpose Det Norske Veritas AS. All rights reserved 08 November Slide 22

23 Challenges in the Arctic Summary: Cold and harsh climate for crew Low temperature, hull and equipment Snow, slush, fog and icing, operation Ice, hull and structure Remote location, operation Photo: Olga Bogdanova Photo: Olga Bogdanova 23

24 How to ensure safe shipping in Arctic Waters Source: Petro.no 24

25 DNV s core competence identify assess manage risk 25

26 Our main services 26

27 146 years of managing risk 27

28 Risk = Probability x Consequence North Sea/World wide Arctic R R Identify Mitigate Ex. Maritime Risk: Collision with other vessel Contact Fire/explosion Structural failure Grounding Collision with installation Collision during Ship To Ship (STS) approach Accidental oil spill during loading/unloading Additional risk 28

29 Arctic Risk Risk = Probability x Consequence Due to the Arctic Challenges: Low Temperatures Ice Darkness Operation Remoteness Higher Consequence of an incident! Environment 29

30 Frequency Low Medium High Risk Matrix In order to maintain same Risk, - the Probability has to be reduced Low Medium High Consequence - The standards have to address the need for a reduction in probability 30

31 Risk Management Focus on Prevention Barriers to eliminate & prevent causes of hazardous event Barriers to control consequences & effects Cause 1 HAZARD Consequence 1 Cause 2 TOP EVENT Major Accident Consequence 2 Material Fatigue Inspection HC Leak Gas Detection Ignition Control How does Arctic conditions affect the barriers? 31

32 Main Risk elements related to Arctic Shipping Estimation of cost Design Long Term Commitment Emergency Evacuation and Rescue Regularity / Logistics The Environment 32

33 Ships for navigation in ice 33

34 WINTERIZATION - Adapt safety, navigation and cargo handling equipment for cold climate to ensure operability ICE CLASS, Baltic or Polar - Strengthening of hull and machinery 34

35 Winterization Winterization for health - Maximizing human performance and preventing injury, fatigue or sickness Winterization for safety - Ensuring the operability and availability of safety-critical equipment and systems Winterization for operability - Maintaining desired operations 35

36 Winterization Winterization for health - Maximizing human performance and preventing injury, fatigue or sickness Winterization for safety - Ensuring the operability and availability of safety-critical equipment and systems Winterization for operability - Maintaining desired operations Svetlana Bogdanova. All rights reserved. 36

37 Winterization Winterization for health - Maximizing human performance and preventing injury, fatigue or sickness Winterization for safety - Ensuring the operability and availability of safety-critical equipment and systems Winterization for operability - Maintaining desired operations 37

38 38

39 Anti-icing Methods 39

40 40 Foto Tranberg AS

41 41 Foto Tranberg AS

42 Rules and Regulations International Rules and Regulations - IMO - SOLAS, MARPOL - ISM, STCW - etc. International Standards - ISO standards Class Rules and voluntary Notations - IACS Polar Class - Class Notations - Guidelines Winterization National Rules and Regulations - Flag state - Port state - Special national requirements 42

43 The New IMO Polar Code There is a need for a common set of mandatory requirements following increased traffic and interest in both Arctic and Antarctic Initiative from Denmark, Norway and USA Risk based with Functional requirements - Supported by deterministic requirements when found necessary Add-on to existing requiremnets To be finished from DE 2012 My be adopted in 2013, earliest in force from

44 IMO definition of Arctic 44

45 ELIMINATING RISK IS NOT AN OPTION It s how you manage your most critical risks 45

46 Conclusions Arctic Operations: Technical challenges are not a showstopper Evaluate actual route, area of operation and regularity Carry out risk analysis of the actual operation Select proper Standards, Ice Class and Winterization A well prepared owner/ship, trained and focused crew will handle the extreme conditions well 46

47 DNV is a global provider of services for managing risk. Established in 1864, DNV is an independent foundation with the objective of safeguarding life, property and the environment. DNV comprises 300 offices in 100 countries 9000 employees, 97 Nationalities 47 [email protected]

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