HSE in planning of operations in

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• HSE in planning of operations in
• The Barents Sea

Tor Fjæran Statoil Victoria, 18 November 2002
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Contents

• Area Conditions
• Main Challenges
• Exploration Issues
• Field Devolopment Issues
• Future Challenges Solutions

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The Southern Barents Sea

• Located north of 70 latitude
• Summer temperature predominant
• Air 42-46F Water 46-48F
• (6 - 8C) (8 - 9C)
• Winter Temperature predominant
• Air 32-35F Water 41-43F
• (0 - 2C) (5 - 6C)
• Winter darkness november - february
• Wave height - predominant
• Winter 2-3 m Summer 1-2 m
• Icing in coastal areas
• No sea ice/iceberg problems

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Seasonal Changes in Maximum Ice Cover

• Norwegian oil-activities are far from the ice-edge

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Key HSE challenges Exploration phase

• MetOcean conditions
• Fisheries
• Contingency Planning
• Logistics Regularity
• Cost level

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Exploration History, Western Barents Sea
59 wells drilled 25 discoveries, 34 dry wells
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Exploring in The Barents Sea
Cooperation between operators

• Seismic acquisition regulated
• Drilling campaign
• Preparation for drilling
• HSE coordination
• One drilling rig
• One common petrobase
• Information to regional/ local stakeholders
• Common emergency preparedness

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NOFONorwegian Clean Seas Association for
Operating Companies

• Oil pollution service
• Experts
• Equipment
• Regional plan
• Operative organization

www.nofo.no
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Oil spill preparedness
Productive capacity of one NOFO system

• Length 400 m
• Efficient wave
• height approx. 3 m

• Number (tentative)
• Offshore 1 system
• In Hammerfest 2 systems
• Several systems further south

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Drilling restriction no activity
Regional 20. March 1. August 1.
November 1. July 1. November 1. August

• Licence/specific
• 1. January 1. August
• 15. January 1. September
• 1. March 1. June
• 1. March 1. September
• 20. March 1. September
• 1. June 1. August

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Snøhvit

• Licence partners
• Statoil (Operator) 22,29
• Petoro
  30,00
• TotalFinaElf 18,40
• Gaz de France 12,00
• Norsk Hydro 10,00
• Amarada Hess 3,26
• RWE DEA 2,81
• Svenska Petroleum 1,24

Key Figures Est. development cost 46
GNOK Reserves 314 GSM3/7.1 TCF gas
34 MSM3/214 MBBL condensate Annual
Production 5.7 MSM3 gas Annual Export
4.2 MSM3 LNG 747.000
tons condensate
247.000 tons LPG CO2 injections 700.000
tons/year CO2 emissions 860.000 tons/year
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New challenges at new frontiersSnøhvit A
milestone project for Statoil and for the NCS
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Main HSE challenges Snøhvit

• MetOcean
• Fisheries
• Remote controlled closed production system -
  regularity
• Location of LNG plant
• LNG tankers
• Ballast water
• Social effects

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Snøhvit New technological solutions

• Subsea development
• Multiphase flow to shore
• Closed system, no discharges offshore
• Reinjection of CO2
• Remote control from shore
• Stepwise development
• Energy efficient LNG plant

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The Melkøya LNG Plant
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Potential Further Gas Development


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Hammerfest - The northernmost town in the world

• The LNG-plant in Hammerfest

• Local/regional spin-offs
• Close cooperation with fisheries
• Potential for new industries
• Dialogue/communication

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Sustainable Development

• Clean sea
• Zero harm
• Co-existence with fisheries
• Sustainable development environment society

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Environmental Impact Assessment

• Initiated by the Government
• Adressing petroleum activity throughout the
  year
• Lofoten Barents Sea
• Conclusions late 2003 (plan)
• Resource Management Plan
• Adressing Northern Waters
• Include all activities at Sea
• Conclusions 2005 (plan)
• Critical for the Petroleum Industry

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Environmental Impact Assessment The industry
approach

• Coexistence with fisheries
• Technology development to meet environmental
• challenges
• Discharges to sea
• Regularity
• Area conflicts
• Mainly subsea installation - overtrawlable

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Barents Sea Potential, Yet To Find

• World class potential
• Large discoveries made in the 1980s
• Primarily gas potential
• Prospects are ready to be drilled

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Patience and care at the Arctic frontier
Approaching the Barents Sea

• Access to frontier exploration acreage
• A unique point of departure

Disputed area

• Large oil and gas resources to be exploited in
  our neighbourhood

Snøhvit

• Strong environ-mental technological focus

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BACK-UP
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Exploration History

• The last years result upgrades the potential and
  interest
• Continued activity vital in order to mature
  resources
• Activity ban from mid 2001 political/environment
  al based

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Prospect Examples in the Norwegian Barents
Ragnarokk 1050 MBO
Garderm. 840 MBO Hurum 1050 MBO Fornebu 950 MBO

N.K.Bassenget F1 300 MBO
Goaskin 360 MBO
Geiga 880 MBO
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The Climate
The Barents Sea compared with The North Sea

• Wind and sea
• No substantial differences
• Several days with calm air in The North Sea

• Temeprature in sea and air
• Colder in The Barents
• The sea in north more stable
• Lowest temp in air North Sea 24F, Barents 7F
• Icing
• Mainly along the coast

• Polar depression
• Maritime cyclone with wind force more than 15 m/s
• Quick and difficult to notify
• Could be intense and heavy

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The situation on the NCS

• The NCS is to a large extent a mature exploration
  area, but large discoveries can still be made in
  the Norwegian Sea and the Barents Sea
• The areas compete with other prolific basins
  around the world
• Access to new acreage is vital, need new
  exploration acreage of good quality
• New gas discoveries must be made in order to
  compete in the future gas markets in Europe (2001
  was the first year where more gas was exported
  than found in exploration wells)
• It is vital that discoveries could be developed
  within reasonable time frames and under known
  frame conditions

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Beyond 71oN the environment

• One of the most important areas for the fisheries
• Sensitive environment
• No present oil and gas production
• Coexisting with the fisheries
• Extensive research on consequences
• Trawl safe sub sea installations
• Closed system
• Produced/condensated water - very
  lowEnvironmental concerns addressed from the
  start

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