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Vol. 17, No. 29 Week of July 15, 2012
Providing coverage of Alaska and northern Canada's oil and gas industry

Moving into place

Shell readies its Arctic fleet but Chukchi Sea ice delays drilling start

Alan Bailey

Petroleum News

As the planned start date for Shell’s drilling in the Chukchi Sea approaches, the company has been positioning the various components of its drilling fleet, in readiness to move into action.

The Noble Discoverer, the drillship earmarked for the Chukchi drilling, has arrived in Dutch Harbor in the Aleutian Islands and the Kulluk, the floating drilling platform that Shell plans to use in the Beaufort Sea, is expected to arrive at the same port in the next four days, Shell spokesman Curtis Smith told Petroleum News in a July 9 email.

Smith said that Shell’s new ice-class anchor handler, the Aiviq, is towing the Kulluk.

But an unusually large amount of early summer sea-ice in the Chukchi Sea will prevent Shell from starting its drilling in July, as sanctioned in the company’s approved exploration plan.

“Ice cover remains more significant than we have seen for the last 10 years,” Smith said. “As a result of the persistent ice that remains over our prospects we are re-calibrating our drilling expectations and plan to commence work around the first week of August.”

Although Shell’s drilling and support vessels are ice capable, the company has previously said that it will not drill in sea-ice conditions.

Barge certification

Shell also still needs permits to drill from the Bureau of Safety and Environmental Enforcement, or BSEE. And apparently the issue of those permits is contingent on the certification by the U.S. Coast Guard of the Arctic Challenger, the barge that Shell plans to use to carry its new oil spill containment system. The company plans to station the barge around the midpoint between its Chukchi Sea and Beaufort Sea operations, ready to move to a drilling site in the unlikely event of a well blowout.

In addition to the containment system, designed to gather oil from a spilling well, Shell is deploying a new well capping stack, based on technology used to stop oil flowing from BP’s Macondo well following the Deepwater Horizon oil spill in the Gulf of Mexico.

BSEE inspected the containment and capping systems in Seattle on June 25.

The Arctic Challenger requires certification because the barge has been undergoing a retrofit to hold Shell’s containment system.

Change of standard

Cmdr. Christopher O’Neil of the U.S. Coast Guard told Petroleum News July 11 that in December the Coast Guard had accepted a proposal by Shell for certification of the barge under the standards for a floating production installation. However, on July 9 the company had proposed that the certification should instead come under the standards for a mobile offshore drilling unit.

Smith said that Superior Energy, operator of the containment system, with advice from the American Bureau of Shipping, had recognized that the mobile offshore drilling unit standard would be more appropriate than the production installation standard, given “the flexibility, mobility and agility needed for such a unique response vessel.”

O’Neil said that the Coast Guard needs to assess whether the proposed standard is applicable to the vessel’s intended use, and then determine whether the vessel meets the standard. Essentially the characteristics of the mooring systems are critical to the certification of a fixed production installation, while the structure of the vessel itself is more critical to a mobile unit that would move out of the path of a particularly severe storm, O’Neil said.

As part of its certification procedure the Coast Guard has also identified some mechanical issues, such as deficient welds and piping issues, that need to be fixed on the barge, although issues of this type are typical of a retrofit situation, O’Neil said.

Inspectors available

O’Neil said that the Coast Guard is making inspectors available to move ahead with the certification but that he does not anticipate “significant movement” in achieving the certification until after July 20.

“There are no shortcuts here,” O’Neil said, reflecting the overriding importance of conducting a thorough inspection and vessel certification.

Although a continuing delay in the certification of the Arctic Challenger could impact the start of Shell’s drilling, Shell sees the ice situation in the Chukchi as the more significant factor at the moment in any delay to the company’s plans, Smith said.



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Greenpeace ship heads for Chukchi

The Greenpeace ship Esperanza is leaving Dutch Harbor for the Chukchi Sea on what the environmental activist organization calls its “Save the Arctic” tour, Greenpeace announced July 6.

Greenpeace characterizes the tour as a research expedition designed “to study unexplored ocean habitats threatened by offshore oil drilling, as well as industrial fishing fleets.” The Esperanza is equipped with “an array of modern research tools” including small submarines, acoustic monitoring equipment and unmanned aerial vehicles, Greenpeace said. The submersibles on the Esperanza are equipped with indexing lasers, high definition video cameras and robotic arms for retrieving samples, the organization said.

“We’re headed to the Arctic to show how little is known about this pristine ecosystem before Shell’s rigs move in to destroy it,” said Jackie Dragon, lead Arctic campaigner for Greenpeace USA. “Instead of recognizing the grave warning of melting sea ice, Shell is planning to drill for more of the oil that caused the melting in the first place. We have to break this vicious cycle of corporate greed and work together to save the Arctic.”

Submarine exploration

Greenpeace said that it in the area of Shell’s drilling it will conduct the first ever submarine exploration of the Chukchi Sea, documenting the marine habitats and wildlife.

“There has been very little consideration of the impacts of drilling — or an oil spill — on the unique marine life of the Chukchi Sea,” said John Hocevar, oceans campaign director for Greenpeace USA. “Very little is known about the Arctic seafloor, and yet Shell is willing to gamble it all before we even know what’s in our hand.”

The federal District Court in Alaska has issued an injunction banning Greenpeace from occupying or interfering with the operation of any of 19 vessels that Shell plans to use in the Arctic, including Shell’s two drilling vessels. The injunction also bans Greenpeace from entering safety zones ranging from 500 to 1,000 meters around the vessels when the vessels are in transit, as well as imposing airspace restrictions around vessels involved in helicopter operations.

In February a group of Greenpeace activists occupied the drillship Noble Discoverer in harbor in New Zealand, to try to prevent the drillship from leaving New Zealand for Alaska. Greenpeace also tried to prevent the departure of the icebreaker Nordica from Finland to join Shell’s fleet.

—Alan Bailey