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Jon Rysst
May 15th 2012
Managing Risks of Operations in the High North
Korea-Norway Business Cooperation Seminar in Seoul
© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
The Arctic is very diverse
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© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
A region of opportunity and interest leading to opening of
new areas to industrial activity
2012 2013 2014 2015-2020
«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
«High Arctic» operations
Extended season drilling
Oil/Gas offshore production
Shipping and mining
Multi-year ice conditions
© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
We should, as a minimum, require
The same risk level in the Arctic as in the North Sea
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Risk
Additional risk
Risk Probability x Consequence
Severity of consequences and probability drive risks
North Sea risk
Rescue
Oil spill
Material failure
Risk mitigated through technology and regulatory measures
Acceptable risk level
© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
The five Arctic coastal states have fundamentally different
regulatory approach to offshore petroleum activities
A performance based system is more suited for the Arctic due to better management
of new challenges, technologies and risks
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Prescriptive and detailed
regulations. However, not yet fully adopted for
offshore activities.
Mainly prescriptive
regulations, often requiring industry
standards through
regulatory incorporation.
Hybrid approach that uses
prescriptive and performance-
based requirements
depending upon the circumstance
Performance-based approach with non-binding guidelines and recommended
standards
Performance-based, requires the operator to
adopt international best
practices
Perf
orm
an
ce-b
ased
Pre
scrip
tive
© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
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
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© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
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
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© Det Norske Veritas AS. All rights reserved.
Managing Risks in the Arctic
May 15th 2012
Safeguarding life, property
and the environment
www.dnv.com
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