Lundin Norway – Our visions and strategies as a leading
company in the Norwegian part of the Barents Sea
by Bernt Rudjord, HSEQ Manager, Lundin Norway AS
1
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
«Formula for success:
Rise early, work hard, strike oil»
J. Paul Getty (1892-1976)
2
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Lundin Norway AS (LNAS) – A Norwegian Success Story
 2003: LNAS established
 2004: Aquiring licenses from DNO
 2007: Drilling of first LNAS operated exploration well

Edvard Grieg discovery
 2008: Alvheim production start-up

Marathon operated
 2010: Johan Sverdrup discovery
 2013: Gohta oil discovery in the Barents Sea
 2014: Alta oil discovery in the Barents Sea
 2014: Brynhild production start-up

The first LNAS operated field
 2015 (4Q): Edvard Grieg production start-up
3
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Edvard Grieg Living Quarter September 2014
4
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Edvard Grieg Steel Jacket and Rowan Viking
5
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Organic growth strategy
 Find new oil
•
New and existing play concepts
• Edvard Grieg (Planned start-up 4Q 2015)
•
Yearly balanced exploration and
delineation drilling
• Johan Sverdrup (Planned start-up 2019)
•
•
6
 Develop new oil
Clustering the portfolio:
• Efficient exploration
• Harvest on own breakthroughs
• Lower economic threshold for
commerciality
Afford to have good ideas
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
• Luno 2
• Gohta (Barents Sea)
• Alta (Barents Sea)
 Produce more from developed fields
•
Brynhild
•
Alvheim and Volund
•
Bøyla
•
Near field exploration
www.lundin-norway.no
Lundin Norway since 2004 start-up
7
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Focused and balanced license portfolio
2015
Exploration and Appraisal Activity
(Spending more than 300 Million USD in 2015 alone)
3
Alta II (PL 609)
Alta III (PL 609)
Neiden (PL 609)
Ørnen (PL 708) (East of Core Area)
2
Morkel (PL 579)
1
Zulu (PL 674BS)
Luno II North (PL 359)
Fosen (PL 544)
Gemini (PL 338C)
Edvard Grieg South East (PL 338)
8
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Alta and Gohta area
9
Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Alta discovery at
Loppa High
10Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Recoverable Resources
Oil;13-50 mill Sm3
Gas; 5-17 billion Sm3
DST:
Oil rate: ~518 Sm3/d
‘(36/64" fixed choke)
GOR: ~94 Sm3/Sm3
11Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Alta well test 2014
Lundin Norway received an exploration award in 2015 for
“Identification of drillable prospects through
thorough integration of all available data and technology”
12Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Bridging the knowledge gap
Facts closes the knowledge gap and the need for the
precautionary principle
Storage in Mareano database to avoid black hole storage
13Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Gas flare demonstrates ongoing petroleum migration
Loppa high
Salina
Skrugard
7120/1-3
? ?
Gohta
Gas
bubbles
sampled
14Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Seabottom as it is
Trawl marks
1m
1m
1.000.000
HUGIN
AUV pictures
15Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Gas flares
16Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Operations in the Barents Sea
 Large area

Potentially long distances to emergency response resources
 Lundin Norway’s operations in the Barents Sea are currently located outside
icy waters, ice bergs/drifting ice is not an issue for the rigs/vessels
 Our approach in the Barents Sea are basically the same as in other areas on
the Norwegian Continental Shelf

The rig and its crew must be able to handle the weather conditions in the area
• SAR helicopter must be located such that acceptable response times are met
• SAR helicopter must be able to operate in «all» weather conditions, e.g. having de-ice
equipment installed (AWSAR)
• SAR helicopter must have Forward Looking Infrared Camera (FLIR) installed

Support vessels must be fit for purpose, ref. DNV-OS-A201 «Winterization for Cold
Climate Operations»
17Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Operations in the Barents Sea (cont.)
 Weather during Winter:






Polar Lows/Squalls
Low temperatures
Sea spray/atmospheric icing
Fog/dense snow flurry
Limited day light
But:
• Not necessarily higher waves and stronger wind
compared to the North Sea
Wind speed [m/s]
35
30
 Exploration activities are limited in
duration

Important to adapt to the conditions in the
Barents Sea and define appropriate
operational criteria for such operations
18Joint MARPART-SEBS Conference, Murmansk 9 April 2015
25
20
15
10
5
0
Jan
Feb
Mar
Avg Snøhvit
Apr
May
Max Snøhvit
Jun
Jul
Aug
Avg Johan Sverdrup
Sep
Oct
Nov
Dec
Max Johan Sverdrup
www.lundin-norway.no
Lundin Norway’s approach when drilling in the Barents Sea
 Wind shields to protect the workers
 Protection of equipment
 Equipment for ice removal
 Suitable survival suits

Requirement to use woolen clothes in cold periods
 Attention to / training in working in cold climate
 Qualification of our standby vessel to NOFO (Oil-spill recovery)

Installation of equipment and training of crew
19Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
SAR Helicopter - Lundin Norway’s approach
 Dedicated LNAS AWSAR helicopter in Hammerfest or Kirkenes (PL 708 Well)
 Duty Doctor in Hammerfest or Kirkenes (PL 708 Well)
 Cooperation with Statoil/Eni wrt back-up AWSAR & LimSAR helicopter in
Hammerfest
20Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Standby Vessel - Lundin Norway’s approach
 Standby Vessel to have equipment installed enabling unconscious personnel/
people with hypothermia to be picked up from the sea, for example using a
Dacon Rescue Scoop
 Traditional rescue basket is not acceptable
21Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Promoting increased knowledge and continuous improvement
 Lundin Norway participate in R&D projects, e.g. testing various coating
material to reduce vessel icing
 Lundin Norway participate in SARiNOR
 Participated in Norwegian Oil and Gas Work group focusing on operations in
the far north
 Technology development program "Oil Spill 2015" (NOFO-regi) focusing on
oil spill recovery in northern areas
 The oil industry, thru NOFO, have an agreement with 30 fishing vessels in
Finnmark to support in any near coast clean-up operations

Local fishermen have important and useful local knowledge, e.g. prevailing currents,
etc.
22Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Norwegian / Russian Cooperation
 In November 2014, LNAS together with Statoil, Eni, the Norwegian Coastal
Administration and Russian Oil Spill Recovery (OSR) organizations
participated in a Norwegian-Russian table top exercise in Murmansk.
 The scenario was based on an oil spill from exploration drilling in Norwegian
waters drifting into the Russian part of the Barents Sea.
 The joint Norwegian-Russian Contingency Plan for Oil Spill Response in the
Barents Sea was the basis for the exercise.
How do the Russian authorities respond?
 How does the Norwegian Coastal Administration respond?
 What will the operator do?
 Operational aspects?

23Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
Cooperation with other operators active in the Barents Sea
 Lundin, together with ENI, GDF Suez, OMV and Statoil, is a member of a
Barents Sea Exploration Collaboration (BaSEC) Group
Collaboration to reduce the risk level related to exploration activities in the
Norwegian Barents Sea
 Logistics & Emergency response work group (1 of 5 work groups)
 Planning an exercise to test oil spill recovery in icy waters
 Special focus on areas included in the 23rd concession round in Norway

24Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
23. Norwegian concession round
 The 23. concession round in Norway was announced in January 2015
 Deadline for application is December 2015
 57 blocks or part of blocks are included


54 in the Barents Sea
3 in the Norwegian Sea
 Of the 54 blocks in the Barents Sea, most of them are located in the Barents Sea
South East
 In the Barents Sea South East, 33 companies have cooperated to shoot new
seismic and process same («Group shoot»), totally 13 500 km2 seismic data
 The competitiveness is how to interpret these data, not in the shooting and
processing

Reduced costs
25Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
23. concession round and Lundin Norway
Lundin
responsible
for seismic
processing
26Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no
«…but do not forget: It is not the strongest species that
survive, nor the most intelligent, but the most responsive
to change»
Charles Darwin
Thank you for your attention!
27Joint MARPART-SEBS Conference, Murmansk 9 April 2015
www.lundin-norway.no