Technical Challenges Associated with the Development and Operation of Arctic Projects

INPEX CorporationField Development Unit, Technical Division

27th November 2014

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Agenda

1. Arctic Projects in Which INPEX is Involved2. Technical Challenges in Arctic Projects

• Project Execution• Ice Conditions• Development Concepts • Flow Assurance• Ice Management• HSE• Logistics

3. INPEX’s Challenges & Way Forward

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1. Arctic Projects - INPEX is Involved

Kashagan

Sakhalin 1

NE Greenland

INTECSEAhttp://www.offshore-mag.com/content/dam/offshore/print-articles/volume-74/02/0214ArcticPoster-012014Ads.pdf

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1. Arctic Projects - INPEX is Involved

Explore Phase Block 9 and Block 14, in the Northeast Greenland

2013/45 License(Block 9)

2013/46 License(Block 14)

100km

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1. Arctic Projects - INPEX is Involved

Operate Phase Sakhalin 1, Russia Kashagan Oil Field, Kazakhstan

http://www.2b1stconsulting.com/exxonmobil-and-rosneft-start-pre-studies-on-sakhalin-lng-project/

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2. Technical Challenges in Arctic Projects

Project Execution

Explore AssessAppraise

Select Define Execute Operate

Discovery H/O to Development FID H/O to Operation

Exploration Phase Development Phase

Asset Acquisition

• Concept Screening & Selection• Ice Conditions (Effect of Climate Change)• Harsh Environment for Operation ：Asset Team Involved in Project in Early Phases.• Regulations, IFC-PS (International Finance Corporation Performance Standard) etc.• Project Management System of Oil & Gas-producing Country• Regional Characteristics• HSE : Environmental Protection, Offshore Safety and EER (Evacuation, Escape &

Rescue)

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2. Technical Challenges in Arctic Projects

Ice Conditions Survey/ Monitoring/ Prediction Effect of Climate Change Trenching Ice Load and Mechanics

Considerations of Ice Conditions are Necessary in Concept Selection.

Severity Level

http://www.offshore-mag.com/content/dam/offshore/print-articles/volume-74/02/0214ArcticPoster-012014Ads.pdf

D. DeGeer, Meeting the challenge of arctic offshore pipelines and subsea systems; Offshore Volume 70 Issue 11, 2010

INTECSEA

Kara sea, Barents sea, Sakhalin

NW Greenland

Beaufort sea, Labrador, Laptev , Chukchi

Kazakhstan, Grand Banks

NE Greenland

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2. Technical Challenges in Arctic Projects

Development Concepts Host Production Facilities

Bottom Founded Structures / Fixed Jacket / Mobile Jack-up / Floating Structure

Subsea facilitiesWell type(Wet vs Dry) / Flowline/ Pipeline

Export methodTie-in Onshore Plants & Pipelines/ Ice Breaking Oil Shuttle Tanker/ Ice Breaking LNG Vessel

http://www.offshore-mag.com/content/dam/offshore/print-articles/volume-74/02/0214ArcticPoster-012014Ads.pdfSakhalin Energy FMC Technology Aker Arctic Technology

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2. Technical Challenges in Arctic Projects

Flow Assurance Hydrate : Conventional Inhibitor, LDHI(Low Dosage Hydrate

Inhibitors), Cold Flow Wax : Thermal Management, Inhibitor

D. Lysne, Ultra Long Tie-Backs in Arctic Environments with the SINTEF-BP Cold Flow Concept, Oil and Gas Developments in Arctic and Cold Regions, U.S.–Norway Oil & Gas Industry Summit, Houston, Texas, 2005.

Cold Flow

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2. Technical Challenges in Arctic Projects

Ice Management Satellite Based Ice Information Protection against Ice Load Ice Breakers Weather Window

S. Hanninen, T. Heideman, O. Toivanen, OTC 24667: Results Using Azipod Propulsion in Ice Management Operations, ATC, Houston, Texas, 2014.

ICETECH 2014

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2. Technical Challenges in Arctic Projects

HSE Evacuations (Helicopter, EER) / MEDIVAC(Medical Evacuation), etc. Exposure of Personnel in Harsh Environment (PPE: Personal Protective

Equipment, Operation) Regulations EBS(Environmental Baseline Survey), EIA(Environmental Impact Assessment),

Environmental Monitoring Oil Spill under Ice Cover

G. Wilkman, E. Ritari, A. Uuskallio, M. Niini, OTC 24592: Technological development in oil recovery in ice conditions, ATC, Houston, Texas, 2014

http://www.offshore-mag.com/content/dam/offshore/print-articles/volume-74/02/0214ArcticPoster-012014Ads.pdf

ARKTOS

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2. Technical Challenges in Arctic Projects

Logistics Country Regulations /Specifications Remote Area LBS (Logistic Supply Base)

- Re-locatable Terminal

Transportation- Ice Breakers- Helicopter

J. C. Lewis, OTC 24665: Arctic Port –Relocatable, ATC, Houston, Texas, 2014 Aker Arctic

G. Wilkman, T. Mattson, OTC 24635: Development of icebreaking ships, ATC, Houston, Texas, 2014

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3. INPEX’s Challenges & Way Forward

1. Information gathering from projects and the latest technologies– Ice Conditions, Project Design, Project Execution, Operations, HSE, etc.– Participation in JIPs, Conferences and Seminars (ATC, OTC, etc.) – Opening of Oslo Office in Norway

2. Collaboration– Partners of the Present Arctic Projects

(ex. Participation of Project Reviews, Technical Support to Kashagan Project)– JOGMEC– Universities, Research Centers, Other Organizations and Companies– Arctic Specialist Network

3. Long-term Human Resource Development Planning for Arctic Specialist– Long-term Human Resource Development Plan– Skill Map for Arctic Specialists

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Thank you