www.lundin-norway.no
Lundin Norway – Our visions and strategies as a leading
company in the Norwegian part of the Barents Sea
by Bernt Rudjord, HSEQ Manager, Lundin Norway AS
Joint MARPART-SEBS Conference, Murmansk 9 April 2015 1
www.lundin-norway.no
«Formula for success:
Rise early, work hard, strike oil»
J. Paul Getty (1892-1976)
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Lundin Norway AS (LNAS) – A Norwegian Success Story
2003: LNAS established
2004: Aquiring licenses from DNO
2007: Drilling of first LNAS operated exploration well
Edvard Grieg discovery
2008: Alvheim production start-up
Marathon operated
2010: Johan Sverdrup discovery
2013: Gohta oil discovery in the Barents Sea
2014: Alta oil discovery in the Barents Sea
2014: Brynhild production start-up
The first LNAS operated field
2015 (4Q): Edvard Grieg production start-up
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Edvard Grieg Living Quarter September 2014
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Edvard Grieg Steel Jacket and Rowan Viking
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Organic growth strategy
Find new oil
• New and existing play concepts
• Yearly balanced exploration and delineation drilling
• Clustering the portfolio: • Efficient exploration • Harvest on own breakthroughs • Lower economic threshold for
commerciality
• Afford to have good ideas
Develop new oil
• Edvard Grieg (Planned start-up 4Q 2015)
• Johan Sverdrup (Planned start-up 2019)
• Luno 2
• Gohta (Barents Sea)
• Alta (Barents Sea)
Produce more from developed fields
• Brynhild
• Alvheim and Volund
• Bøyla
• Near field exploration
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www.lundin-norway.no
Lundin Norway since 2004 start-up
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Focused and balanced license portfolio
2015 Exploration and Appraisal Activity (Spending more than 300 Million USD in 2015 alone)
3
Alta II (PL 609) Alta III (PL 609) Neiden (PL 609) Ørnen (PL 708) (East of Core Area)
2 Morkel (PL 579)
1 Zulu (PL 674BS) Luno II North (PL 359) Fosen (PL 544) Gemini (PL 338C) Edvard Grieg South East (PL 338)
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Alta discovery at
Loppa High
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Recoverable Resources
Oil;13-50 mill Sm3
Gas; 5-17 billion Sm3
DST:
Oil rate: ~518 Sm3/d
‘(36/64" fixed choke)
GOR: ~94 Sm3/Sm3
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Alta well test 2014
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Lundin Norway received an exploration award in 2015 for “Identification of drillable prospects through thorough integration of all available data and technology”
www.lundin-norway.no
Facts closes the knowledge gap and the need for the precautionary principle
Bridging the knowledge gap
Storage in Mareano database to avoid black hole storage
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Gas flare demonstrates ongoing petroleum migration
? ?
Loppa high
Skrugard Salina
Gas
bubbles
sampled
7120/1-3
Gohta
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Seabottom as it is
1m
1m
1.000.000
HUGIN
AUV pictures
Trawl marks
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Operations in the Barents Sea
Large area
Potentially long distances to emergency response resources
Lundin Norway’s operations in the Barents Sea are currently located outside icy waters, ice bergs/drifting ice is not an issue for the rigs/vessels
Our approach in the Barents Sea are basically the same as in other areas on the Norwegian Continental Shelf
The rig and its crew must be able to handle the weather conditions in the area
• SAR helicopter must be located such that acceptable response times are met
• SAR helicopter must be able to operate in «all» weather conditions, e.g. having de-ice equipment installed (AWSAR)
• SAR helicopter must have Forward Looking Infrared Camera (FLIR) installed
Support vessels must be fit for purpose, ref. DNV-OS-A201 «Winterization for Cold Climate Operations»
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Operations in the Barents Sea (cont.)
Weather during Winter:
Polar Lows/Squalls
Low temperatures
Sea spray/atmospheric icing
Fog/dense snow flurry
Limited day light
But:
• Not necessarily higher waves and stronger wind compared to the North Sea
Exploration activities are limited in duration
Important to adapt to the conditions in the Barents Sea and define appropriate operational criteria for such operations
0
5
10
15
20
25
30
35
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Avg Snøhvit Max Snøhvit Avg Johan Sverdrup Max Johan Sverdrup
Wind speed [m/s]
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Lundin Norway’s approach when drilling in the Barents Sea
Wind shields to protect the workers
Protection of equipment
Equipment for ice removal
Suitable survival suits
Requirement to use woolen clothes in cold periods
Attention to / training in working in cold climate
Qualification of our standby vessel to NOFO (Oil-spill recovery)
Installation of equipment and training of crew
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SAR Helicopter - Lundin Norway’s approach
Dedicated LNAS AWSAR helicopter in Hammerfest or Kirkenes (PL 708 Well)
Duty Doctor in Hammerfest or Kirkenes (PL 708 Well)
Cooperation with Statoil/Eni wrt back-up AWSAR & LimSAR helicopter in Hammerfest
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Standby Vessel - Lundin Norway’s approach
Standby Vessel to have equipment installed enabling unconscious personnel/ people with hypothermia to be picked up from the sea, for example using a Dacon Rescue Scoop
Traditional rescue basket is not acceptable
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Promoting increased knowledge and continuous improvement
Lundin Norway participate in R&D projects, e.g. testing various coating material to reduce vessel icing
Lundin Norway participate in SARiNOR
Participated in Norwegian Oil and Gas Work group focusing on operations in the far north
Technology development program "Oil Spill 2015" (NOFO-regi) focusing on oil spill recovery in northern areas
The oil industry, thru NOFO, have an agreement with 30 fishing vessels in Finnmark to support in any near coast clean-up operations
Local fishermen have important and useful local knowledge, e.g. prevailing currents, etc.
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Norwegian / Russian Cooperation
In November 2014, LNAS together with Statoil, Eni, the Norwegian Coastal Administration and Russian Oil Spill Recovery (OSR) organizations participated in a Norwegian-Russian table top exercise in Murmansk.
The scenario was based on an oil spill from exploration drilling in Norwegian waters drifting into the Russian part of the Barents Sea.
The joint Norwegian-Russian Contingency Plan for Oil Spill Response in the Barents Sea was the basis for the exercise.
How do the Russian authorities respond?
How does the Norwegian Coastal Administration respond?
What will the operator do?
Operational aspects?
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Cooperation with other operators active in the Barents Sea
Lundin, together with ENI, GDF Suez, OMV and Statoil, is a member of a Barents Sea Exploration Collaboration (BaSEC) Group
Collaboration to reduce the risk level related to exploration activities in the Norwegian Barents Sea
Logistics & Emergency response work group (1 of 5 work groups)
Planning an exercise to test oil spill recovery in icy waters
Special focus on areas included in the 23rd concession round in Norway
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23. Norwegian concession round
The 23. concession round in Norway was announced in January 2015
Deadline for application is December 2015
57 blocks or part of blocks are included 54 in the Barents Sea
3 in the Norwegian Sea
Of the 54 blocks in the Barents Sea, most of them are located in the Barents Sea South East
In the Barents Sea South East, 33 companies have cooperated to shoot new seismic and process same («Group shoot»), totally 13 500 km2 seismic data
The competitiveness is how to interpret these data, not in the shooting and processing Reduced costs
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23. concession round and Lundin Norway
Lundin responsible for seismic processing
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