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Managing risks of operations in the high north
- 1. Managing Risks of Operations in the High North
Korea-Norway Business Cooperation Seminar in Seoul
Jon Rysst
May 15th 2012
- 2. The Arctic is very diverse
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved. 2
- 3. A region of opportunity and interest leading to opening of
new areas to industrial activity
«Cold Climate» operations
Seismic and drilling activity, some shipping activity
Cold climate conditions, mainly in summer season
First year ice conditions, or ice free
Darkness, low temperatures, remote
2012 2013 2014 2015-2020
«High Arctic» operations
Extended season drilling
Oil/Gas offshore production
Shipping and mining
Multi-year ice conditions
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved.
- 4. We should, as a minimum, require
The same risk level in the Arctic as in the North Sea
Risk Probability x Consequence North Sea risk
Severity of consequences and probability drive risks Additional risk
Risk
Acceptable risk level
Rescue
Material failure
Oil spill
Risk mitigated through technology and regulatory measures
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved. 4
- 5. The five Arctic coastal states have fundamentally different
regulatory approach to offshore petroleum activities
Performance-based
Prescriptive
Mainly Hybrid approach
Prescriptive and
prescriptive that uses Performance- Performance-
detailed
regulations, often prescriptive and based approach based, requires
regulations.
requiring industry performance- with non-binding the operator to
However, not yet
standards based guidelines and adopt
fully adopted for
through requirements recommended international best
offshore
regulatory depending upon standards practices
activities.
incorporation. the circumstance
A performance based system is more suited for the Arctic due to better management
of new challenges, technologies and risks
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved. 5
- 6. We believe that safe and sustainable oil and gas activity can
be ensured in the Arctic
Way forward:
Key preventive measures:
A risk based a approached to be adapted
Adequate and harmonized regulations, rules,
and technical standards, ref. Barents 2020
Sharing of “best-practices” on Arctic operations
Key consequence reducing measures:
Search and rescue capacity
Oil spill response capability
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved. 6
- 7. The North East Passage or Northern Sea Route
Politically related challenges:
Totally dependent on Russian jurisdiction
and predictability incl. disposition of the
Atomflot fleet of icebreakers
Climate, physical and financial challenges:
Temperature incl. ice and darkness
Limited draft and width
Short season (3-4 months)
Claimed fees for icebreaker assistance
Price tag of ice class requirements
Managing Risks in the Arctic
May 15th 2012
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- 8. Safeguarding life, property
and the environment
www.dnv.com
Managing Risks in the Arctic
May 15th 2012
© Det Norske Veritas AS. All rights reserved. 8