This document summarizes an oil and gas industry report about exploration in the Arctic region. It finds that the Arctic holds an estimated 22% of the world's undiscovered oil and gas resources. International oil companies are increasing exploration there due to new technologies, shrinking sea ice, and tax incentives from Russia. However, exploration also faces challenges from environmental groups and harsh conditions. The report details exploration activities and partnerships between oil companies and Russia's Rosneft and Gazprom in the Arctic.

1. Oil and Gas Exploration in the Arctic - Vast, Technically
Recoverable Oil and Gas Resources Attract International Oil
Companies to Increase Presence in the Region
Report Details:
Published:November 2012
No. of Pages:
Price: Single User License – US$3995
"Oil and Gas Exploration in the Arctic - Vast, Technically Recoverable Oil and Gas Resources
Attract International Oil Companies to Increase Presence in the Region" is the latest report from
GlobalData, the industry analysis specialist. The report highlights the oil and gas exploration
potential of the Arctic region, providing details of the key exploration areas, major companies
exploring the Arctic and the drivers and challenges of oil and gas exploration in the Arctic. The
report discusses the leasing and exploration activities in the US (Alaska), Greenland, Canada,
Norway and Russia, detailing exploration and production operations of major international oil
companies involved and key drivers and challenges for development in the environmentally
sensitive region.
Scope
•The report provides an overview of the oil and gas resources in the Arctic
•The report discusses the major issues and drivers driving International Oil Companies (IOCs) to
establish their presence in the Arctic
•The report also provides updates on recent developments encouraging developments in the
Arctic region
•The report details the exploration activities carried out by Rosneft, ExxonMobil Corporation,
Statoil, Cairn Energy Plc, Royal Dutch Shell and BP PLc.
•The report also discusses the possible environmental implications of oil and gas exploration in the
Arctic
Reasons To Buy
•Develop business strategies with the help of specific insights into the oil and gas exploration
activities undertaken in the Arctic by major IOCs
•Identify key drivers and challenges for exploration activities in the Arctic region
•Plan your strategies based on knowledge of operations of major companies in the Arctic region
•Keep yourself informed of the key developments in this potentially game changing market

2. Additional Information
Arctic Region Holds an Estimated 22% of Global Undiscovered Oil and Gas Resources
The Arctic region holds estimated technically recoverable resources of 90 billion barrels (bbls) of
oil, 1,669 trillion cubic feet (tcf) of natural gas, and 44 billion bbls of Natural Gas Liquids (NGLs).
According to the World Petroleum Resource Project undertaken by the US Geological Survey
(USGS) in 2012, it has been observed that the majority of undiscovered oil in the Arctic Sea region
is present in the Arctic provinces of north America, followed by the Arctic provinces of the Former
Soviet Union (FSU). The majority of undiscovered natural gas in the Arctic Sea region is located in
the Arctic provinces of FSU, followed by the Arctic provinces of north America and Europe.
Advanced Offshore Drilling Technologies to Enable International Oil Companies to Increase
Exploration Activities in Arctic
International Oil Companies (IOCs) have developed a wide range of technologies that can be used
for drilling purposes, both in offshore and onshore areas. Royal Dutch Shell (Shell) uses floating
rigs for drilling exploration wells in offshore areas, meaning that once the drilling of wells has been
completed the rig can be moved to other locations. Although large ice masses are a concern for
moving rigs, Shell uses specially developed vessels to manage the ice and protect the rigs. Shell
has also developed various oil spill prevention and response mechanisms in order to prevent oil
spills and minimize the impact of any spills that occur. Some of the techniques used by Shell if an
oil spill occurs include the usage of mechanical skimmers, controlled burning, and dispersants.
Mechanical skimmers are used for removing oil from the surface of the water and gathering it in a
large storage vessel. Controlled burning is a useful and proven technique used in the case of an
oil spill. In some cases, dispersants are also used in response to oil spills. Dispersants work in a
way similar to detergents, breaking oil up into fine droplets which can easily be degraded without
posing a substantial threat to the surrounding marine environment (Shell, 2012a).
In the Russian Arctic, platforms are being built, which will be capable of withstanding high waves,
typhoons and earthquakes. These oil and gas platforms were built as part of the Sakhalin II
project, which is considered to be one of the largest export oriented oil and gas projects. These
three platforms are the Piltun-Astokhskoye-A platform, also known as "Molikpaq", and the Piltun-
Astokhskoye-B and Lunskoye-A platforms. These platforms have been built with giant concrete
legs, which are very thick and round in shape in order to be able to withstand earthquakes
measuring up to eight on the Richter scale (Shell, 2012b).
Russian Governments New Tax Approach will Encourage Offshore Development in the
Arctic Region
The Russian government is taking steps to strengthen exploration operations in the Arctic, through
the introduction of new tax incentives. There are three forms of taxes applicable for oil and gas

3. companies in Russia: mineral extraction tax, oil export duty, and corporation tax. Previously, the
Russian taxation system did not offer any incentives, but after the return of Vladimir Putin to the
role of president, steps are being taken to reduce the tax burden. The government is planning to
abolish export duties for offshore exploration operations. It is mandatory for foreign companies to
connect with state oil and gas companies, such as Rosneft or Gazprom, to carry out exploration
activities. There are plans to submit a proposal to the government in late 2012, focusing on the
abolishment of export duties for a period of between five and fifteen years, depending on the
viability of the project. President Putin has also announced that once the production of the field
begins, these taxation rules will not be changed for a period of 15 years.
Rosneft and Gazprom Join With International Oil Companies to Explore and Develop Arctic
Resources
Russian oil and gas giants Rosneft and Gazprom are co-operating with IOCs to explore and
develop oil and gas resources in the Arctic region. Rosneft, a leading Russian oil and gas
company, has entered into a joint venture with ExxonMobil Corporation, Statoil and Eni SpA in
order to explore vast oil and gas resources in the Arctic region. Gazprom, which has a monopoly
in the gas market in Russia, has entered into a joint venture with Shell.
Rosneft and ExxonMobil have entered into an agreement regarding the exploration and
development of oil and gas resources in Russia, particularly in the Kara Sea and Black sea. This
strategic agreement will benefit both companies in terms of sharing expert knowledge and
technology. ExxonMobil has acquired interest in Rosnefts assets in the Arctic region. Through this
deal, Rosneft benefited from ExxonMobils technical knowledge of Arctic exploration, as well as
gaining equity interest in certain of ExxonMobils assets in the US and Canada.
Rosneft and Statoil have entered into an agreement to carry out exploration activities in the
Barents Sea and Sea of Okhotsk, which are contained within the Arctic Circle. The agreement also
encompasses Rosnefts participation in exploration operations in the Barents Sea, along with the
acquisition of stakes in international projects led by Statoil.
Rosneft and ENI Spa have entered into an agreement to carry out exploration activities in the
Black sea and Barents sea. Eni will finance geological studies in order to ensure hydrocarbon
potential and the commercial value of the fields. Rosneft has been engaged in joint ventures with a
number of different international players that possess expertise and knowledge of offshore
production, and are equipped with sophisticated technology.
Gazprom has also formed a joint venture with Shell for the development of the Sakhalin II project.
The Sakhalin region is one of the prospective areas into which Gazprom is interested in investing.
Between 2008 and 2011, the total investment made by the company in the Sakhalin region
amounted to more than RUB95 billion ($3.05 billion). In 2012, Gazprom plans to invest more than
RUB43 billion ($1.38 billion) in the Sakhalin region projects.

4. Cairn Energy Focuses Exploration Efforts in Greenland Arctic Region
Cairn Energy is focused at carrying offshore exploration activities in the Greenland Arctic region.
Cairn Energy has substantial interest in resources in the Greenland and Arctic region, which led
the company to establish its presence in the region at an early stage. This helped the company to
gain a foothold in the region, as did the advantage of low entry cost and work commitment. The
company enjoys its leading position in terms of seismic data acquisition, geological information
and expertise in exploration operations. Cairn Energy is among the leading acreage holders in
Greenland.
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Major points covered in Table of Contents of this report include
1 Table of Contents
1.1 List of Tables
1.2 List of Figures
2 Introduction
2.1 Overview
2.2 GlobalData Report Guidance
3 Arctic Region Holds Vast Technically Recoverable Oil and Gas Resources
3.1 The Arctic Region Holds Substantial Undiscovered Oil and Natural Gas Resources
3.2 Major Sedimentary Basins in the Arctic Region
3.3 Oil and gas Exploration in the Arctic: Key Drivers and Challenges 3.3.1 Substantial Oil and
Gas Reserves and Advanced Offshore Drilling Technologies to Enable International Oil
Companies to Increase Exploration Activities in Arctic Region
3.3.2 Shrinking Ice Cover in the Arctic to Lead to Increased Exploration and Drilling Activities
3.3.3 Russian Government's New Tax Approach to Strengthen Incentives for Offshore Operations
3.3.4 Environmental Issues May Hamper Exploration Activities
3.3.5 Opposition from Environmental Groups Regarding Exploration in Arctic Region
3.3.6 Harsh Climatic Conditions in the Arctic Affect Infrastructure Development Activities
3.3.7 Territorial Disputes Affect Oil and Gas Development in Arctic
4 Rosneft Forges Alliances With International Companies to Explore Arctic Assets
4.1 Exploration Activities in the Arctic Region 4.1.1 Exploration Activities in the Kara Sea Blocks
4.1.2 Exploration Activities in the Pechora Sea

5. 4.2 Rosneft Co-operates with IOCs to Explore and Develop Arctic Resources and Venture into
Other International Projects Operated by IOCs 4.2.1 Rosneft and ExxonMobil Co-operate on
Exploration and Production Activities in Kara Sea and Western Siberian Basin
4.2.2 Rosneft and Statoil
4.2.3 Rosneft and ENI
5 ExxonMobil has Strong Presence in the US, Canada, Greenland and Russian Arctic
5.1 Exploration Activities in the Arctic Region 5.1.1 Exploration in Alaska Arctic
5.1.2 Exploration in Canadian Arctic
5.1.3 Exploration in Offshore Russia
5.1.4 Exploration in Greenland: Orsivik and Puilasoq
5.2 Exxon and Rosneft Sign Agreement to Explore Arctic oil in Kara Sea
6 Statoil Takes Strategic Approach to Broadening its Presence in the Arctic
6.1 Exploration Activities in the Arctic Region 6.1.1 Exploration in Canadian Arctic
6.1.2 Exploration in Greenland
6.1.3 Exploration in North American Arctic (Alaska)
6.1.4 Exploration in Russian Arctic
6.2 Major Discoveries in the Arctic 6.2.1 Mizzen
6.2.2 Havis
6.2.3 Skrugard
6.3 Statoil Forms Joint Venture with Rosneft to Carry Out Exploration Activities in Barents Sea and
Okhotsk Sea
6.4 Statoil Forges Partnership with Gazprom to Develop Shtokman Field
7 Cairn Energy Focuses on Greenland Arctic Region
7.1 Exploration Activities in the Arctic Region 7.1.1 Exploration in Greenland
7.2 Cairn Energy Sell Equity Stakes of Greenland Licenses to Statoil
8 Royal Dutch Shell Among the Leading Companies Focusing on Exploration in the Arctic
Region
8.1 Exploration Activities in the Arctic Region 8.1.1 Exploration in Alaska
8.1.2 Exploration in Canadian Arctic
8.1.3 Exploration in Russian Arctic
8.1.4 Exploration in Greenland
8.2 Gazprom and Royal Dutch Shell Co-operate in the Development of Sakhalin Project

6. 9 BP Plc has Strong Presence in the US and Russian Arctic Regions
9.1 Exploration Activities in the Arctic Region 9.1.1 Exploration and Production in Alaskan Arctic
9.1.2 Exploration in Russian Arctic
10 Appendix
10.1 Abbreviations
10.2 Market Definitions
10.3 Sources
10.4 Methodology 10.4.1 Coverage
10.4.2 Secondary Research
10.4.3 Primary Research
10.4.4 Expert Panel Validation
10.5 Contact Us
10.6 Disclaimer
List Of Tables
Table 1: The Arctic Region, Conventional Oil and Natural Gas Resources (Mean Estimated
Undiscovered Technically Recoverable) By Province, 2012
Table 2: The Arctic, BP Plc, Alaska Operations, Prudhoe Bay Satellite Fields, 2012
List Of Figures
Figure 1: The Arctic Region, Location Map, 2012
Figure 2: The Arctic Sea, Probability of the Presence of at Least One Undiscovered Oil And/or
Gas Field with Recoverable Resources Greater than 50 MMboe
Figure 3: The Arctic Sea, Distribution of Undiscovered Oil and Natural Gas Resources, 2012
Figure 4: The Arctic Sea, Undiscovered Gas, 2012
Figure 5: The Arctic Sea, Undiscovered Oil, 2012
Figure 6: The Arctic Sea, Major Sedimentary Basins, Location Map, 2012
Figure 7: The Arctic, Exclusive Economic Zone, 2012
Figure 8: The Arctic Region, Russia, Exploration Blocks with Rosneft, 2012
Figure 9: The Arctic Sea, Russia, Western Siberia Basin, Location Map, 2012
Figure 10: The Arctic Region, ExxonMobil Operations, 2012
Figure 11: The Arctic Region, Sakhalin-1 Project, 2012
Figure 12: The Arctic Region, Assets of Statoil, 2012
Figure 13: The Arctic Region, Statoil, Canadian Arctic Operations, 2012
Figure 14: The Arctic Region, Statoil, Leases in the Alaskan Arctic, 2012
Figure 15: The Arctic Region, Statoil, Skrugard Discovery Location Map, 2012
Figure 16: The Arctic Sea, Statoil, Shtokman Project, 2012
Figure 17: The Arctic Region, Cairn Energy, Arctic Operations, 2012
Figure 18: The Arctic Region, Cairn Energy, Exploration Blocks, 2012
Figure 19: The Arctic Region, Royal Dutch Shell, Arctic Operations, 2012

7. Figure 20: The Arctic Region, Royal Dutch Shell, Sakhalin II Project, 2012
Figure 21: The Arctic Region, Royal Dutch Shell, Ormen Lange Oil and Gas Production, 2012
Figure 22: The Arctic Region, Royal Dutch Shell, Ormen Lange Gas Filed and Langeled Pipeline,
2012
Figure 23: The Arctic Region, BP Plc, Assets in Alaska, 2012
Figure 24: The Arctic, BP Plc, Alaska Operations, Prudhoe Bay, 2012
Figure 25: The Arctic Region, BP Plc, Russian Arctic, 2012
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