Operations in the Arctic areas? New challenges: Exploration Development Production

Operations in the Arctic areas? New challenges: Exploration Development Production

The oil and gas cycle Life cycle of oil and gas (time) 1) 2) 3) 4) 5) 6) Activity In-house study and get licenses: Find areas with favorable geological conditions Geological survey: Provide detailed information of the geology Exploratory drilling: Verify the presence of a hydrocarbon reservoir and quantify the reserves Appraisal: Determine if the reservoir is economically feasible to develop Drilling and production: produce oil and gas from the reservoir through formation pressure, artificial lift, and possibly advanced recovery techniques, until economically feasible reserves are depleted Decommissioning and rehabilitation: may occur for each of above phases. None Potential requirement on ground Access to onshore sites and marine resource areas Possible onshore extension of marine seismic lines Access for drilling unit and supply units Storage facilities Waste disposal facilities Testing capabilities Additional drill sites Additional access for drilling units, supply units, waste disposal and storage facilities Improved access, storage and waste disposal facilities Equipment for production: Wellheads, Flowlines Equipment for storage, process and export: Accommodation, infrastructure Equipment to plug wells, remove installation 3

1) An oil company is given the permission to explore License round Licenses for searching, drilling and producing oil Example from License round in Greenland FING: Arctic Region Oil & Gas Seminar in Training and Education 6

Licensing system

Gravity data Gravity surveys the measurement of gravitational acceleration over an area, usually presented as a map. Variations in the gravitational field can be used to map changes in the density of formations in the Earth. Gravity surveys can be used to map the extent or depth of sedimentary basins. FING: Arctic Region Oil & Gas Seminar in Training and Education 8

Magnetic data Variations in the magnetic field can be used to determine the extent of sedimentary basins an the depth to basement rocks, as well as differentiate between igneous rocks and certain sedimentary rocks such as salt. FING: Arctic Region Oil & Gas Seminar in Training and Education 9

2) Tools for geological survey Seismic survey Searching for oil over water using seismology FING: Arctic Region Oil & Gas Seminar in Training and Education 10

2. Detection of shallow gas FING: Arctic Region Oil & Gas Seminar in Training and Education 11

Seabed disturbance by iceberg scours offshore Labrador in water depth of more than 100 metres.

3) Exploration drilling A treasure hunt to find oil and gas Background: Based on desk study: a map of the rocks where they think oil and gas might be found Purpose: One or more exploration wells are drilled to determine possibly of hydrocarbons If hydrocarbon reservoir is detected the well will be surveyed with logging tools both from the MWD/LWD and wireline logging. The well will be well tested Hydrocarbon samples Temperature and pressure measurements Flow rates After the well test, plug and abandon.

Qualify and quantify 4) Appraisal drilling Appraisal wells are drilled to confirm the size and structure of the field and well logging(analysis) provides data on the hydrocarbon-bearing rocks If appraisal confirms a commercial reservoir, the operator may then proceed to development.

Field development plan (FDP) Give the best technical solutions for field optimization. Based on Geophysics, geology, reservoir information from exploration and appraisal drilling Comprise activities and processes required to develop a field, including: A. Logistics, due to Transport the personnel and equipment to the rig Location of onshore base Minimize cost while maximizing safety and efficiency B. Drilling system & Production system C. Processing & surface facilities D. Economics and risk assessment

Logistics Three main questions to be answered: A. Where to place the onshore base? B. How to transport the personnel and equipment to the rig? C. How to minimize cost while maximizing safety and efficiency?

Logistics Challenges: Extreme cold with permafrost Darkness Regulations with waste handling Unpredictable ice movement Mobility limitations and remoteness Little or no already existing infrastructure Focus: Location and logistics Weather and ice management Rig and dynamic positioning HSE, zero emissions Well control FING: Arctic Region Oil & Gas Seminar in Training and Education 17

A. Location of onshore base Objects: Nearby airport Ice free sea route Questions need to be answered? Are there already existing infrastructure that can be used? Is the base close enough for helicopters to fly without refill of fuel? Is the base close enough to mobilize within a time if accident would occur? Is the sea route between the base and field open the whole year? FING: Arctic Region Oil & Gas Seminar in Training and Education 18

Location of onshore base: potential onshore locations for offshore operation FING: Arctic Region Oil & Gas Seminar in Training and Education 19

HSE: Safety Ice challenges: High speed Ice mass (thickness) Unpredictable movements/changing direction in ice Large ice loads on rig Animation; Ice movement in the artic Ice Movement (Keinonen et al 2000)

Challenges Waves and wind Low pressure, Changing weather Fog Ice berg 21