Posts Tagged ‘gas’

Statoil orders control umbilicals for Fossekall-Dompap

March 23, 2011

Oil and Gas Journal – Original article here.

HOUSTON, Mar. 23 — Statoil let a 200 million kroner contract to Aker Solutions for control umbilicals for the fast-track Fossekall-Dompap subsea development that will tie back the fields to the Norne floating production, storage, and offloading vessel in 380 m of water on Block 6608/10 in the Norwegian Sea. Fossekall, discovered in 2010 with well 6608/10-14, and Dompap, discovered in 2009 with well 6608/10-12, along with Vilje South are part of Statoil’s second-wave of fast-track projects. Statoil plans to start development drilling on the fields in March 2012 with production starting in December 2012. Statoil expects to recover from Fossekall 37-63 million bbl of oil and 1-3 billion cu m of gas. The company drilled the Fossekall discovery well, in 352 m of water, to 2,749 m into the Lower Jurassic Are formation and encountered oil in the Ile, Tofte, and Are formations and gas in the Melke formation. For Dompap, Statoil’s preliminary estimate is that the field holds 25-50 million bbl of recoverable oil. It drilled the exploration well 6608/10-12 to 3,158 m into the Lower Jurassic Are formation. Statoil also drilled the 6608-12 A sidetrack to 2,931 m that terminates in the same Are formation. The well is in 334 m of water. The 26 km of umbilicals ordered from Aker Solutions will have dynamic and static sections and will provide hydraulic, electrical, and fiber optic functions for three planned four-well-slot templates on Fossekall-Dompap. The umbilicals also include a 2.5-in. monoethylene glycol line for hydrate prevention and inhibition during shutdowns. Aker Solutions plans to manage the engineering of the control umbilicals at its Oslo facility and manufacture the umbilicals at its facility in Moss, Norway. It expects to make the final deliveries in second-quarter 2012. Fossekall-Dompap are in PL 128 and operator Statoil holds a 63.95% interest in the license. Partners are Petoro AS 24.55% and Eni Norge AS 11.5%.

TNK-BP moves closer to Russian arctic

March 8, 2011

MOSCOW, March 7 (UPI) – original article here
Anglo-Russian energy venture TNK-BP could join Rosneft and Gazprom in developing the Russian arctic shelf if terms are good, the Russian prime minister said.

Russian Prime Minister Vladimir Putin said TNK-BP might be able to persuade its oil and natural gas colleagues to tap into more domestic natural resources if the terms are favorable to all parties involved.

“There is a law, under which we have entrusted Rosneft and Gazprom with work on the shelf,” Putin was quoted by Russia’s official RIA-Novosti news agency as saying. “If TNK-BP offers suitable terms of joint work to one of the companies it can (join the project). Why not?”

TNK-BP, a joint venture between a group of Russian billionaires and BP, is at odds with the British supermajor and Rosneft over an asset swap that included exploration deals in the Russian arctic.

BP in January agreed to pay Rosneft more than $8 billion in shares for a 9.5 percent stake in the Russian energy company in addition to a development agreement for the Kara Sea on Russian’s northern continental shelf.

Putin brushed off the historic rival between TNK-BP and its London counterpart by noting any rivalry is an internal matter for each company to address.

“These are their problems, they must solve them between themselves,” he said.

Greenland’s Inuit Premier defends oil and gas drilling

March 1, 2011

Gloria Galloway, Ottawa, The Globe and Mail
Published Wednesday, Feb. 23, 2011 – Original article here

The Inuit Premier of Greenland is passionate in defending the need to develop his country’s oil and gas potential – a stance that puts him at odds with Canadian Inuit groups, which have tried to block offshore drilling near their communities.

Kuupik Kleist was one of the speakers at a two-day summit of Inuit leaders who met this week to discuss resource development. Mr. Kleist said Wednesday that there will be oil and gas extraction in and around Greenland and the Inuit want to dictate its terms. Here is what he said in response to questions from reporters; the questions have been edited and the answers trimmed.

More related to this story

Many Inuit and environmentalists in Nunavut argue that any oil and gas exploration could damage a fragile ecosystem. How do you respond to those concerns?

We have a co-operation with the Canadian government on the issue of protection of the environment [as it relates to] the oil industry. And we have that co-operation because of the Canadian experience, which we don’t have … both within the mineral sector and within the oil industry for years. And what we’re looking at is to gain from the experiences, not only from Canada but also from Norway, for instance, which is regarded as an upscale developer of technology.

I have had a dialogue with the Minister for the Environment in Canada who was, in the outset, very concerned about the exploratory drillings off the Greenland west coast. What happened during our dialogue was that now Canadian employees are on the drilling sites off the west coast of Greenland to learn about security.

Do you feel that the oil and gas industry is safe?

You can never ensure 100 per cent that nothing will happen. You have to be honest facing the risks. … [But] companies from the outside have been exploiting natural resources in the Arctic area for centuries now. The Inuit didn’t. Now it’s our turn. It seems like now gradually the peoples of the Arctic are taking over powers then suddenly it becomes much more dangerous, risky and what else you might come up with. You see the environmental groups coming now to the Arctic area and trying to hinder activities conducted by indigenous governments in the Arctic. Why didn’t they do that, like, 100 years ago, 50 years ago, or even just 15 years ago? Now, with technology developed, it’s much safer today than it was before.

Do you think the unrest in Libya and other places in the Middle East will put even more focus on oil exploration in Greenland?

Of course. We are now a full part of the global economy. We cannot hide away or shy away from looking at what’s happening on the rest of the globe. We are a part of it and we need to face that and we have to take precautions according to what happens on the market.

The Greenland ice shelf is melting at an increasing rate. This presents challenges, but does it also hold some potential?

It’s not the fault of Greenland that the ice is melting. Nobody believes that by tomorrow the need for fossil fuels will disappear just because of the ice melting. If Greenland should stay away from exploiting its mineral resources, some other place on the Earth will do it, that’s for sure. But we are doing it under the strongest precautions, we are sticking to best practices, we are sticking to the best available technology and you cannot be sure that the rest of the world would do that.

Is there potential for confrontation between companies and Inuit groups for control of resources?

Of course. That’s not new. That’s always existed. The change that’s been going on is that now we have the insight, we have the powers, we negotiate ourselves. We don’t allow federal governments just to hand over Inuit lands to companies to exploit the mineral resources. It’s in our hands. We need to face all of the challenges that are connected with that kind of activity. The difference is that it’s now us sitting at the end of the table, and of course the confrontations, wherever they might be, we need to face them.

Russia to draft program for Arctic shelf exploration by 2012

January 14, 2011

Russia is first in the world in natural gas reserves (24 percent of the total) and 7th in oil reserves (6 percent), but these resources are not renewable

02:44 14/01/2011© RIA Novosti. Vladimir Baranov

Original article here

The Russian government will develop by 2012 a state program for prospecting and extracting mineral resources on Russia’s Arctic shelf, Secretary of the Russian Security Council Nikolai Patrushev said.
“The Security Council discussed this issue during a recent meeting and instructed the government to finish drafting and adopt by the end of 2011 a long-term state program for prospecting and extracting mineral resources on Russia’s Arctic shelf, Patrushev said in an interview with the Rossiiskaya Gazeta daily published on Friday.
Russia is first in the world in natural gas reserves (24 percent of the total) and 7th in oil reserves (6 percent), but these resources are not renewable.
According to Russia’s Natural Resources Ministry, the country is already exploring 75 percent of its oil and gas deposits on the continent. Many of these deposits register 50-percent depletion and low extraction coefficient (30 percent).
“In these circumstances, Russia’s continental sea shelf becomes a major source of energy supplies, and its exploration assumes an enormous strategic and economic significance,” Patrushev said.
Russian experts estimate recoverable oil and gas resources on the continental shelf at 100 billion tons of reference fuel.
The new program will help focus the efforts of the state and the leading Russian energy companies on efficient exploration of deposits on the continental shelf, Patrushev said.

MOSCOW, January 14 (RIA Novosti)

Greenland proceeds with plans for offshore drilling in Arctic waters

May 10, 2010

(Darrell Delamaide for OilPrice.com via OilGuy/OpEdNews.com, 9 May 2010) — While the oil spill from a sunken drilling rig in the Gulf of Mexico threatens to become an environmental disaster, plans are proceeding for opening up new drilling territories in the iceberg-infested waters off Greenland. The island, an autonomous territory under Danish sovereignty, this week conducted an auction for 14 blocks in Baffin Bay, off the northwest coast of Greenland near Canadian territorial waters. Results will be announced in August. In the meantime, Cairn Energy will this summer begin drilling off DiskoIsland in Baffin Bay on the basis of leases awarded in earlier auctions. Exxon Mobil and Chevron also hold existing leases, while Royal Dutch Shell and Norway’s Statoil were among the bidders in this week’s auctions. The U.S. Geological Survey has estimated that some 50 billion barrels of oil may be found offshore Greenland, where ice covers four-fifths of the surface territory for a good part of the year. Some in Greenland, which has a population of only 57,000, hope that oil will be the ticket to independence from Denmark, which has controlled the island since the 18th century. The portion of the Labrador Current flowing through Davis Strait off western Greenland is known as “iceberg alley” because huge chunks of ice that calve from the northern glaciers make their way into the northern Atlantic along this route. Ironically, global warming, which has melted some of the Arctic glaciers, has made offshore drilling in these waters more feasible. However, the Gulf oil spill is raising concerns in Canada about the risks posed in drilling so near the Canadian coastline. Cairn Energy’s only offshore drilling experience has been in the much warmer Indian Ocean, and no one has had to cope with an oil spill in Arctic waters. Officials from eight Arctic countries, including Canada, are to meet in Greenland next month to discuss possible environmental risks of oil exploration and production in the region. Last fall, seven companies with drilling licenses, including Cairn, formed the Greenland Oil Industry Association to exchange expertise and liaise with the government on environmental and other issues. Analysts estimate that an oil price of at least $50 a barrel is necessary to make Arctic offshore drilling worthwhile. Prices have hovered around $80 a barrel in recent months.

Original article here

Race for Arctic Energy Riches Heats Up

April 22, 2010

By Peter C. Glover, ET Europe Associate Editor

Ed. Note: “The Arctic: Territory of Dialogue” conference in Moscow has been postponed because of the volcanic eruption in Iceland. It has been rescheduled to take place sometime in September.

Race for Arctic Energy Riches Heats Up

When Vladimir Putin calls for international dialogue and personally attends the resulting conference, you know Russia means business. Whether the intention is that the international cards are dealt fairly or the flim-flam of talking shop PR diplomacy, is hard to say. But the whimsically titled “The Arctic: Territory of Dialogue” conference on the future of the Arctic’s oil and gas riches represents new Cold War intrigue writ large.

The race for the Arctic’s energy bonanza is heating up. If you were in any doubt, check out this conference season. Last month, Canada hosted a summit of Arctic Ocean Foreign ministers from the littoral nations, i.e. Canada, the US, Russia, Denmark and Norway. It was billed as Canada finally taking its Arctic initiative seriously. But the conference only hit the headlines when US Secretary of State Hillary Clinton criticized the organizers for excluding other interested parties, especially the indigenous peoples and Iceland, Finland and Sweden.

In June, the Adam Smith Conferences will host the Russian Arctic Oil and Gas conference, this, again, in Moscow. But with the Arctic Council already supposedly the carriers of the torch for the new international Arctic “arrangements” why inaugurate yet another series of international talking shops?

Well, one major clue comes with the priority of the organizing group, the Russian Geographical Society (RGS), and with those invited as speakers and guests. The RGS, historically, is far better known for its environmental rather than energy concerns, as a review of its new “The Arctic” website confirms. According to Svetlana Mironyuk of Ria Novosti news agency, which is responsible for micro-managing the event, the conference will be “the first large project of the revived Russian Geographical Society.”

And, while Prince Albert of Monaco, the Aspen Institute Arctic Commissioner, is the honorary guest, it appears that he and Putin are the only invited statesmen. According to Mironyuk, this underscores the point Putin wants to make, that Arctic territory disputes are matters to be left to the “explorers and scientists.” Making the call for international dialogue in an address to the RGS in mid-March, Putin began with the politics: “There has been much ado around the Arctic region. You know how the [Russian] flag was erected [on the seabed] and how negatively our neighbours reacted to this. Nobody has stopped them erecting their own flags. Let them do it. But we work under the rules established by the United Nations and in line with maritime laws.”

Putin soon moved to other more esoteric matters. Indeed his RGS audience must have thought that Al Gore had been parachuted in as the Russian Prime Minister made an impassioned plea … to save the polar bears. Putin said, “The number of polar bears continues to decline. In fact, they are on the verge of extinction. Of course, this must not be allowed, and the polar bear should be preserved not only in zoos, but in wildlife also.”

Leaving aside that polar bears are actually currently thriving, as recent studies have shown, one can only gasp that the Russian PM has apparently found environmentalism being converted to a sudden concern for the Arctic wildlife. Am I being a little cynical perhaps, or is all this a clear indication that Putin is building an international case for Russia as the key Defender of the Arctic environment, to further bolster Russian geographical claims? You call it.

Meanwhile, if Russia is serious about taking the initiative in reducing growing tensions over Arctic territorial and mineral rights and potential future conflict, then there are certainly plenty of tensions around to defuse. Russia and the US have yet to resolve a long-standing demarcation dispute in the north Pacific; the US and Canada are arguing over large areas of the Beaufort sea; Denmark is wrangling with Canada over claims in Greenland; and there’s Norway’s claim to a massive portion of Russia’s continental shelf in the Barents Sea. Britain, too, has lately made a claim in the north Atlantic giving it “Arctic access.”

Then there are, of all things, China’s Arctic claims.

Currently on a worldwide metals and energy shopping spree, China too has shifted its eyes to the vast new energy frontier beckoning under the Arctic. China clearly has no intention of being dealt out of the Great Arctic Energy Game. Beijing has gained observer-status at the Arctic Council. It has opened research stations in Norway, at Spitzgen. It owns the world’s largest, Soviet-bought, ice-breaker with which it already plies Arctic waters. Though China has no rights to Arctic shelf deposits per se, it understandably has a serious interest in the region’s strategic and economic future. Not least, over new oil and gas fields, the settling of the legal rules for the polar oceans, border demarcations and, particularly, newly navigable Arctic waterways; shipping lanes that could significantly reduce the length of China’s westbound trading routes.

With potentially 15% of the world’s total hydrocarbon reserves at stake, Putin plainly wants to position Russia as the key dealer at the new Arctic energy table. He has a credible case. The RGS claims that 80 percent of the “Arctic land” is governed by the Russian Federation and Canada. And a US study in June 2009, authored by Californian geologist Dr. Donald Gautier, has acknowledged that Russia, with the longest Arctic border and its army of nuclear ice-breakers, does indeed “own the rights” to most of the Arctic’s energy riches. Gautier stresses: “Russia is already the world’s largest producer of natural gas, and so our findings suggest that the undiscovered resources are going to have the effect of more or less reinforcing that Russian strategic strength with respect to its natural resource potential.” Just what Europe, the US, China and Japan need — Russian calling the shots on a sizeable chunk of the world’s oil and gas resources for decades to come. No wonder Putin perceives an unprecedented opportunity to offer international seats to the Arctic Great Game, in anticipation that most won’t want to straggle in late being dealt out altogether.

Russia, like any new frontier pioneer, is going to need partners to overcome the enormous technological difficulties that lie ahead. Putin is no fool. By taking the roundtable diplomatic initiative as the leading Arctic energy power and chief protector of the Arctic environment, the new “green” Putin believes that “jaw-jaw” – on Russian terms, of course – is clearly better for business than energy “war-wars.”

The conference thus amounts to an invitation to interested parties to offer an international blessing to a betrothal and something of a marriage of convenience between the Russian and the Polar bear. Kismet, so Putin might believe, given that “Arctic”, from arktos, is the Greek word for bear.

Original article here

Russia to start eastward oil and gas shipments via Arctic in 2010

February 10, 2010

26-12-09 Sovcomflot, Russia’s largest shipping company, will start delivering Russian oil and gas in the eastern direction of its Arctic shipping lane in the summer, the company head said. At a meeting with Russian Prime Minister Vladimir Putin, Sergei Frank said Sovcomflot was planning to launch pilot shipments of Russian hydrocarbon reserves in the eastern direction of the Northern Sea Route, from the Atlantic to the Pacific via Russia’s Arctic, later in 2010. “We will make such pilot deliveries in the summer,” he said.

Frank said the goal was to expand oil and gas markets for domestic energy producers and enter new ones. The businessman said though shipments via the Arctic had been made before, the scale and cargoes were different.
“We are cooperating closely with the transportation and nuclear power ministries, and with the federal office of Rosatomflot [state-run civil nuclear fleet corporation] now to arrange everything properly for [oil and gas] shipments,” Frank said.
He said the eastward shipment experience would later be used in the development of West Siberia’s Yamal fields and also for liquefied natural gas (LNG) supplies.

Original article here

The illustration (from wikipedia) shows the Northern Sea Route, sometimes also called the North East Passage, in blue and the alternative route through the Suez Canal in red.
Hornorkesteret are worried about increasing traffic and environmental threats along the whole Northern Sea Route,  and we are especially concerned about the increase of traffic along the coast of our beautiful and beloved homeland Norway!

Norway combined oil, gas output to dip

January 15, 2010

Norway combined oil, gas output to dip

14 mins ago
Reuters Gwladys Fouche

Norway’s combined oil and gas production fell by 1 percent in 2009 from 2008 and is expected this year to continue its gradual decline resulting from dropping oil output from maturing fields. Skip related content

Gas sales, however, are set for another record year in 2010.

The Norwegian Petroleum Directorate (NPD) said on Friday Norway’s oil output will drop to 1.87 million barrels per day in 2010 from 1.99 million last year and 2.11 million in 2008. Gas sales are seen at 105 billion cubic metres from 103.5 bcm.

The government agency’s top priority is to increase recovery from existing fields, but it said that oil companies active on the Norwegian shelf have so far been cool to such pressure. They keep costs down to levels suited to a past era of cheap oil rather than spend more to extract less accessible deposits.

“The industry is in many ways conservative,” NPD Director General Bente Nyland told Reuters in an interview.

“They are still living in the low oil price scenario. They are reluctant to work on higher (forecasts for) oil prices.”

The NPD said that present development plans envisage recovery rates of 46 percent, meaning that 54 percent of the oil will remain in the reservoirs.

“A mere one percent increase in the recovery rate can generate an income of 100-150 billion crowns (10.8 – 16.2 billion pounds) for Norwegian society,” the NPD said, adding that production was not replaced by finds “to a sufficient extent.”

Energy Minister Terje Riis-Johansen said he had told state-owned oil company Petoro, which manages the government’s stake in Norwegian oil and gas fields, to back projects aimed at raising recovery rates to slow the decline in oil production.

“Petoro… will argue and work and vote for decisions which positively impact the start of processes on more recovery,” he told Reuters. “From now on, this will be on Petoro’s agenda.”

GAS OUTAGES

Riis-Johansen said Norway was doing everything possible to find out what caused a number of its natural gas facilities to break down in early 2010, to ensure that disruptions in flows that triggered gas balancing alerts in Britain were not repeated.

“I am sure that everything that is possible to do will be done to find out why this happened and ensure it will not happen again,” he said. “It is extremely important for Norway to be looked at and to be a reliable producer and exporter of gas.”

Norway’s Petroleum Safety Authority also said on Friday it asked operators of the gas facilities for details surrounding the outages, which were blamed on cold weather.

Norway aims to discover some 5 billion barrels of oil in the 2005-2015 period, but over the past four years it has discovered new reserves of about 1.85 billion barrels, the NPD said.

“The production will not appear magically,” Nyland said. “The Norwegian Petroleum Directorate is putting pressure on the oil companies to increase production from existing oil fields.”

Officials say it is easier to boost recovery rates now than in five or 10 years’ time because mature oilfields still in operation can more easily serve as hubs for recently found nearby smaller reservoirs. Once the oilfields shut down for good, it will be more costly to bring smaller finds on stream.

The NPD said that an “impressive” 72 exploration wells were completed last year leading to 21 new discoveries in the North Sea and seven new discoveries in the Norwegian Sea.

“However, most these discoveries are small,” it said.

Total oil and gas output, counted in units of oil equivalent, is expected to slip to 236 million cubic metres in 2010 from 238.6 million last year. The 2009 figure represents a 9.3 percent fall from peak production in 2004.

By 2014, Norway’s oil and gas output was seen down to 223 million cubic metres, the NPD said.

(With additional reporting by Wojciech Moskwa, Richard Solem and Ole Petter Skonnord in Oslo, Editing by Anthony Barker)

Original article here