Setting standards and managing risk are crucial to developing the tremendous oil and gas reserves in the arctic. There are, however, major obstacles to development, including hazards from sea ice and icebergs, long distances from existing infrastructure, and periods of extreme cold and total darkness.

A study by the US Geological Survey says 25% of all untapped reserves in areas known to contain oil are found north of the Arctic Circle. This figure does not take into account unexplored regions — which includes most of the arctic. There is a real possibility that the region could be a world class petroleum province like the North Sea.

The increasing demand for hydrocarbons and the declining reserves in other places puts the arctic on the top of the list for many oil and gas companies.

Pushing into the arctic frontier, DNV believes the risks of energy production and transportation must be managed with the highest level of knowledge because major obstacles still exist.

The challenges
The Arctic offers challenges throughout the entire value chain, including, among others:

  • Ice. In many areas, the near-constant presence of sea ice and icebergs pose a threat to both ships and platforms.
  • Superstructure icing. Icing over can cause problems for all sizes of vessels in terms of operating equipment as well as personnel movement.
  • Remoteness. Long distances to shore introduce significant problems for pipeline transport as well as power supply, search and rescue, and other operations.
  • Environmental conditions. Extreme cold, darkness, and isolation create difficult working conditions for crews.
  • Oil spill cleanup. Providing adequate oil spill equipment, production equipment and emergency response measures is difficult in icy, inaccessible areas.
  • Climate change. The Arctic is very vulnerable in terms of climate change. The physical, environmental, social and economic consequences of climate change may be much more severe in the Arctic than other areas. Uncertainties posed by climate change are equally difficult to contend with. Should ships and platforms be designed for warmer conditions, or will extreme variations cause worse conditions than are present now?


The class contribution
DNV has a long history working with ships and structures in ice. The first requirements for additional ice strengthening were actually set in 1881. Fridtjof Nansen’s famous Arctic expedition ship Fram, built in 1892, was classed to DNV rules.

Over the past 20 years, DNV has addressed winterization of offshore units working in the high north. More strict international rules and regulations combined with advances in tanker design and operation have resulted in significant improvement in the tanker industry’s safety record. The challenge is to continue this trend when oil and gas transportation expands into arctic areas.

DNV now has a complete set of ICE Rules for both the Baltic and the Arctic. For Arctic areas, the company has developed a set of rules with different requirements depending on operation purpose and ice conditions. New IACS rules (a common set of rules for hull and machinery for ships to be operated in arctic waters) came into force in March 2008.

Standard for arctic pipelines on its way

Although the first arctic pipelines were designed, installed, and operated more than 30 years ago, the design of pipelines subject to arctic conditions is a developing discipline. No industry practice exists. Research and development is ongoing, and DNV has taken a leading role in developing specifications. Key drivers for success include a combination of innovation and experience that will be applied to qualifying technology gaps in exploration, construction, installation, and operations, and to maintaining arctic subsea equipment and pipelines.

In most ice-infested areas with moderate water depths, ice scour from ridges, stamukhi (thick ice ridges that become fixed to the seabed during the winter and do not melt in summer conditions), and icebergs impact the design of seabed infrastructure, including wellheads, trees, flow lines, umbilicals, and in particular, pipelines. Additional impacts include arctic pipeline construction and installation issues for trenching, well intersection evaluations, and arctic pipeline operations, including leak detection and monitoring as well as pipeline repair.

Designing shore approaches requires specific consideration. This is often a much more problematic issue in sea ice areas than other locations because of near-shore environmental sensitivity, coastal regression, permafrost, and the deep burial required to prevent damage from ice gouging in the shallowwater areas.

Critical platform design issues

Offshore petroleum exploration in arctic regions is in its fourth decade, yet there is still a remarkable divergence in the calculation of design ice loads for offshore platforms. Until now, most development has been carried out in relatively shallow water with the use of ice islands or one-of-a-kind installations and vessels for both drilling and production activities. The challenge for future activities, especially as they move to deeper water, will be designing, building, and operating vessels and installations that can withstand the elements.

The question of global design ice loads is a critical issue facing arctic operators, designers and regulators. Ice impacts can generate high local ice pressures, causing damage or failure of small but critical areas of structures and ships. This issue overwhelms any disagreements that may exist on loads from waves, winds, currents, or design methodologies. It also has serious implications on the economic feasibility of arctic offshore production and future exploration activity.

Material issues

The environmental conditions in the Arctic are variable, and installations are not necessarily in an “extreme cold” environment. The minimum seabed temperature is often greater than 38°F (4°C), which is not significantly different from all deep ocean temperatures. This is in contrast to the landfall area and areas exposed to air offshore where temperatures can reach -41°F (-40°C) and lower. In addition, both onshore and offshore pipelines and installations operating in arctic areas can be exposed to high strains, and combined with very low temperatures, selection of material and weld procedures is crucial. They must be selected and qualified for strain based design purposes.

Stringent requirements are needed with regard to controlling structural integrity for oil and gas pipelines installed and operated in arctic areas, where the environment is especially vulnerable. The risk of the combination of low temperatures and high stresses leading to loss of integrity means that defects or cracks must be tightly controlled, and appropriate safety levels must be assured.

Human performance

Human performance in the cold can increase major accident and occupational injury through direct psychological and physiological effects. Falling ice is a hazard, and slippery surfaces make the simplest of tasks difficult. A particular problem is wind chill. In some locations, “no outdoor work” periods can be 70 to 80% in a month. Working time restrictions of considerable duration can result in maintenance issues or drilling and production shutdown. Therefore, working environment design should consider, at the least, layout, equipment reliability and redundancy, modularization, and remote control.

At present, national requirements are vague. A DNV cold stress study has identified national regulations and guidelines for Russia, Norway, Greenland, Canada and the United States. Though these regulations are in place, they do not set specific requirements related to cold stress.

Facing environmental, political challenges.

Because the Arctic is seen as one of the last great pristine environments, world opinion and attention focus on protecting the region and preventing the slightest threat to its integrity. Prospective developers of oil and gas reserves in this region should understand and take into consideration these factors and recognize their impact on development feasibility.

The Arctic offshore regions offer tremendous challenges and opportunities. Operators will have the best success if they manage the holistic risks picture. By developing new methodologies, understanding the arctic risk agenda, and working hard to manage risks and improve safety, DNV is working with key players to take steps in the right direction.

One example is the standards developed in Barents 2020 project. This three-year project is intended to harmonize industry standards for health, safety and the environment for the Barents Sea. Russian and Norwegian authorities and industries are working together toward this goal.

The standards will contribute to a level of safety at least as high as that in the North Sea and that also takes into account the demanding conditions in the High North. The standards may be applicable in other harsh areas of the world as well.