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February 2010

Vol. 15, No. 9 Week of February 28, 2010

Our Arctic Neighbors: Statoil solving Arctic offshore challenges

Snohvit project could pave way for gradual exploration and development of Lofoten, Vesteralen region in Norway’s far north

Sarah Hurst

For Petroleum News

The advanced technology that Norway’s Statoil is using for the Snohvit project in the Barents Sea could also be effective in the Lofoten and Vesteralen waters, which are currently closed to oil and gas activity, the company’s Senior Vice President Hege Marie Norheim said at the Arctic Frontiers conference in Tromso Jan. 26.

“Some specific challenges meet us in the Arctic ice and darkness,” Norheim said. “In the subarctic waters of Norway, specifically in Lofoten and Vesteralen, there are additional challenges connected to a very narrow continental shelf. This means less space for all of those operating in these waters, and it means all activities will be closer to shore than what we have been used to so far.”

The Snohvit gas field was discovered in 1981, the plan for its development and production was delivered in 2001 and production began in 2007.

“Gas volumes of this size, but so far from the market, resulted in building an LNG factory in Hammerfest,” Norheim said. “The field has its platform, if you like, on the seabed. Nothing can be seen on the surface. And the equipment on the bottom is put in place in close cooperation with the local fisheries, and in such a way that their activities are not affected. These installations are over-fishable.”

Regulations tough

The oil and gas industry in the Arctic regions of Norway has the toughest regulations in the world, according to Norheim. “We are required to have zero oil and chemical emissions,” she continued. “This means we actually collect rainwater on our drilling decks to prevent oil or chemicals spilling into the sea. We have very strict regulations on windows of operation. No drilling or seismic activities are allowed during reproduction periods for fish.”

Statoil believes that the oil industry and fisheries can coexist in the Lofoten and Vesteralen region despite the challenges, Norheim told the conference.

“As we saw from Snohvit, we are world leading in building the platforms on the seabed,” she said. “Seismic activities, however, are not on the seabed and demand quite a lot of space.”

The Norwegian government should develop strict regulations for seismic activities in the area, Norheim added.

“The fisheries, as well as fishery authorities, are well within their rights to ask for better knowledge on the effect of seismic activities on fish,” Norheim said. “Norwegian governments have indeed concluded that seismic does not physically harm fish, eggs or juveniles. However, the effect on fish behavior and the question of whether seismic scares them away, how far and for how long, are questions the petroleum industry has not been able to answer as of today.”






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