Russia's arctic production needs

More needs to be done to develop Russian subsea production capabilities in order to develop hydrocarbon resources in Russia’s arctic seas, SPE Arctic & Extreme heard in Moscow yesterday.

According Gazprom, there is an estimated 21-46Billion tons of oil and 36.5-83Trillion cu m of gas in the arctic seas.

Of that total, Russia’s sea areas within the arctic contain 11-24billion tons of oil and 25.5-57Trillion cu m of gas, said Vadim Petrenko, head of directorate of engineering and offshore development technology, gas, gas condensate and oil production department, Gazprom.

But he says: “There is no experience building infrastructure in conditions similar or close to those that exist in the Russian arctic.

“There are severe ice situations, low temperatures, seasonal ice bergs with 2m-plus thickness, pack ice, strong winds, seasonal fog, low visibility, very shallow waters—at 1-2m in places on the Yamal shelf—a very sensitive eco-system… which are all very challenging situations to carry out our work,” he said.

He said for 90% of hydrocarbons prospects new technology was needed for development to proceed, and that “development of new technology is a strategic task for the whole oil and gas industry.

In particular, subsea infrastructure, capable of operating in high levels of ice, year round, and at step-outs of more than 600km, was needed to ensure power supply.

“All the major oil and gas majors focus on the same challenge,” he said. “New technologies must be introduced to add double, triple back up and to service such facilities.”

Petrenko says Gazprom is currently working on guidelines for such facilities, which it hopes to complete by 2014.

But he said for Russia to develop domestic subsea production capabilities, high levels of investment would be needed in order to develop a company able to compete with dominant companies such as FMC, OneSubsea, Aker Solutions, and GE.

“Most companies in Russia only finance design and testing phase,” he said. “Maybe it would make sense to consolidate investment opportunities. Several companies and research centers could develop new technology.”

He also said the “successful development of the arctic shelf depends on availability of new technology and best practices” and that this would require international cooperation and resource building.

"The main objectives in order to develop arctic resources are equipment and infrastructure, and the need to develop coastal infrastructure to support operations. There is little experience today in the arctic shelf. We must get going, we must cooperate with Russian and international companies who have long been interested in these developments.”

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