World
National Oil Companies Congress
London, 23 June 2010
Opportunities and challenges in
the development of oil and gas ...
Overview
How large is the opportunity of
Greenland?
Overcoming the challenges of
petroleum exploration in the Arctic
Envir...
Area 2.166.086 km2
Ice cover (80%) 1.754.530 km2
Ice free area (20%) 433.217 km2
Population (2009) 56.462
Nuuk (Capital) 1...
Quick facts about Greenland
Sedimentary basins - 825.000 km2
~ 4 x (Viking & Central Graben system)
OBJECTIVES BY GOVERNMENT OF GREENLAND
There is broad consensus in Greenland that efforts should be
made to develop the min...
OBJECTIVES BY GOVERNMENT OF GREENLAND
“ We need a stronger economy and we have to utilize the opportunities
that oil could...
Nunaoil A/S
The National Oil Company of Greenland
Established in 1985
Mission: Represent the Greenland Home Rule Governmen...
How large is the opportunity of Greenland?
Arctic seafloor
is hot !
G
reenland
”Arctic may harbour as much as 22% of
the t...
How large is the opportunity of Greenland?
>70 % of the mean undiscovered
oil ressource is estimated to occur
in five prov...
Petroleum exploration in the past
21.000 km seismic in early 1970´ies
Strong increase in oil price
6 licenses – 21 compani...
Petroleum exploration in the past
“Pelican” drilling Kangâmiut-1 ”Sedco 709” drilling Nukik 1
Additional 16.000 km seismic...
Petroleum exploration in the past
1984 – license granted for 12 years
ARCO (operator) (63,74%)
Arktisk Minekompagni (11,25...
Petroleum exploration in the past
1995 – 1996
Operator: GrønArctic Energy
Co-operator: Platinova A/S
3 thin holes (400 – 9...
Petroleum exploration in the past
Fylla license - 2000
Qulleq 1 well
Operator: Statoil
Co-operators: Phillips, DongEnergy,...
Cairn Energy
Chevron
DongEnergy
Exxon
EnCana
Husky Energy
P. A. Resources
Petronas
Nunaoil A/S (carried)
The oil and gas s...
2009 – Record year for activities
Seismic acquisition : 1970 - 2009
5wells
1well
Data coverage1999 - 2009
1999 2009
Baffin Bay licensing round
Baffin Bay – 1 May 2010
14 Blocks ~ 151.000 km2
Block size: 8.000 – 15.000 km2
13 applications ...
Greenland Sea licensing round
The KANUMAS project: 1990-96
6 IOC (preference rights)
Nunaoil - operator and carried
2D sei...
Exploration drillings 2010 ?
21 December 2009: Cairn announced securing of Stena Forth
04 January 2010: Cairn announced se...
Challenges for Greenland
Physical challenges:
Sensitive marine environment / ecosystem
Harsh arctic climate
Long cold wint...
Challenges for Greenland
National challenges:
Limited infrastructure
No roads between towns or settlements
2 international...
What can other NOC´s learn from Nunaoil´s experience ?
Challenges for Nunaoil /Greenland as an NOC in the expanding
petrol...
CONCLUSION
“Whilst the drilling and licensing activity in 2010 are important
milestones in the exploitation of Greenland´s...
World
National Oil Companies Congress
London, 23 June 2010
The National Oil Company of Greenland
Thank You
Hans Kristian O...
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Hans kristen olsen's presentation slides from the 2010 World National Oil Companies Congress

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Hans kristen olsen's presentation slides from the 2010 World National Oil Companies Congress

  1. 1. World National Oil Companies Congress London, 23 June 2010 Opportunities and challenges in the development of oil and gas resources off Greenland´s coast
  2. 2. Overview How large is the opportunity of Greenland? Overcoming the challenges of petroleum exploration in the Arctic Environment considerations and strategies What can other NOC´s learn from Nunaoil´s experience ? Conclusion
  3. 3. Area 2.166.086 km2 Ice cover (80%) 1.754.530 km2 Ice free area (20%) 433.217 km2 Population (2009) 56.462 Nuuk (Capital) 16.500 (28%) Number of towns: 18 (84%) Number of settlements: 55 (16%) Offshore wells 6 Onshore well 1 E & P licenses (2006) 2 E & P licenses (2010) 13 Acreage (2006) 6.882 km2 Acreage (2010) 131.364 km2 Number of companies (2006) 1 + Nunaoil Number of companies (2010) 8 + Nunaoil Quick facts about Greenland No exploitation of Oil & Gas !Icecap thickness > 3000 m
  4. 4. Quick facts about Greenland Sedimentary basins - 825.000 km2 ~ 4 x (Viking & Central Graben system)
  5. 5. OBJECTIVES BY GOVERNMENT OF GREENLAND There is broad consensus in Greenland that efforts should be made to develop the mineral and petroleum resources sector into a sustainable industry… … that can make a positive contribution to the economic development of the country and the creation of new jobs… ...and export revenue in addition to the fishing industry.
  6. 6. OBJECTIVES BY GOVERNMENT OF GREENLAND “ We need a stronger economy and we have to utilize the opportunities that oil could bring us. Environmentalist around the world advise us not to exploit the oil reserves. But we are not in the situation where we can replace the declining income from our fisheries, and we don´t have any other resources for the time being that hold as much potential as oil. ” Kupik Kleist, Premier of Greenland
  7. 7. Nunaoil A/S The National Oil Company of Greenland Established in 1985 Mission: Represent the Greenland Home Rule Government in oil exploration and exploitation in Greenland. Shareholder: 100 % - Government of Greenland Board members: 5 Number of employees: 7 Website: www.nunaoil.gl E-mail: nunaoil@nunaoil.gl Tuapannguit 38, 3900 Nuuk
  8. 8. How large is the opportunity of Greenland? Arctic seafloor is hot ! G reenland ”Arctic may harbour as much as 22% of the technically resources in the world” The area north of Arctic Circle holds: ~ 90 BB of undiscovered, technically recoverable oil ~ 1,670 TCF of technically recoverable natural gas ~ 44 BB of technically recoverable natural gas liquids Courtesy by USGS Rest of the world North Africa, Caspian Sea, Middle East Arctic
  9. 9. How large is the opportunity of Greenland? >70 % of the mean undiscovered oil ressource is estimated to occur in five provinces: Arctic Alaska Amerasia Basin East Greenland Rift Basins (~31 BBO) East Barents Basin West Greenland - East Canada (~17 BBO) Courtesy by USGS
  10. 10. Petroleum exploration in the past 21.000 km seismic in early 1970´ies Strong increase in oil price 6 licenses – 21 companies 46 block – 18.502 km2 Petroleum exploration in the 1970-ies
  11. 11. Petroleum exploration in the past “Pelican” drilling Kangâmiut-1 ”Sedco 709” drilling Nukik 1 Additional 16.000 km seismic 5 offshore wells in total drilled in 1976 and 1977 All wells were dry Licenses relinquished in 1978 1997 – Hydrocarbons detected by GEUS in Kangâmiut 1 well NU98 03-10 2 NU 98 03 -10 1 NU 98 03 -10 1 Ikermiut-1 Hellefisk-1 Kangamiut-1 Nukik-2 Nukik-1 Petroleum exploration during the 1970´-ies
  12. 12. Petroleum exploration in the past 1984 – license granted for 12 years ARCO (operator) (63,74%) Arktisk Minekompagni (11,25%) Nunaoil (carried) (25,00%) 1988: AGIP (co-operator) Investment: 1 B DKR Seismic: 1800 km License relinquished in 1990 Jameson Land – Central East Greenland June 2010 ~10.000 km2
  13. 13. Petroleum exploration in the past 1995 – 1996 Operator: GrønArctic Energy Co-operator: Platinova A/S 3 thin holes (400 – 900 m) 1 conventional drilling – GRO #3 Ca. 5 km west of planned target Depth – 2996 m – dry Later quantitative log interpretation by GEUS suggested hig hydrocarbon saturation in thick ss - units Investment – Cdn$ 12,3 mio. ~ 70 mio.dkr. License returned in 1996 The onshore seeps indicate that the local basins may generate large volumes of hydrocarbons Nuussuaq GRO # 3
  14. 14. Petroleum exploration in the past Fylla license - 2000 Qulleq 1 well Operator: Statoil Co-operators: Phillips, DongEnergy, Nunaoil Depth: 2937 m – Dry License relinquished in 2001 West Navion
  15. 15. Cairn Energy Chevron DongEnergy Exxon EnCana Husky Energy P. A. Resources Petronas Nunaoil A/S (carried) The oil and gas sector in Greenland The stakeholders in petroleum exploration
  16. 16. 2009 – Record year for activities Seismic acquisition : 1970 - 2009 5wells 1well
  17. 17. Data coverage1999 - 2009 1999 2009
  18. 18. Baffin Bay licensing round Baffin Bay – 1 May 2010 14 Blocks ~ 151.000 km2 Block size: 8.000 – 15.000 km2 13 applications -prequalification round 17 E&P applications by 12 companies Co-financing projects TGS / Nunaoil 53.500 km Aeromag 15.119 km 2D Seismic 15.119 km Gravimetry Co-financing projects Infoterra / Nunaoil Satellite slicks- and icestudies
  19. 19. Greenland Sea licensing round The KANUMAS project: 1990-96 6 IOC (preference rights) Nunaoil - operator and carried 2D seismik : 7000 km Seismic vessel: F 357 Thetis (Danish Navy) Co-finances projects TGS / Nunaoil Aeromag: 103.823 km (2007-08) Gravimetri: 84.033 km 2D Seismik: 14.659 km Greenland Sea – 15 December 2012
  20. 20. Exploration drillings 2010 ? 21 December 2009: Cairn announced securing of Stena Forth 04 January 2010: Cairn announced securing of Stena Don 11 June 2010: Application submitted for approval to the Government of Greenland by the Minister of Mineral Resources 15 June 2010: YES / NO ? Stena Forth Stena DonPelican Sedco 709
  21. 21. Challenges for Greenland Physical challenges: Sensitive marine environment / ecosystem Harsh arctic climate Long cold winters – short summers Sea ice and icebergs Wind and ocean currents Polar darkness – midnight sun Global warming?
  22. 22. Challenges for Greenland National challenges: Limited infrastructure No roads between towns or settlements 2 international airports 12 fixed-winged airports for Dash-7 Few harbours suited for offshore services Lack of skilled workforce Fisheries still most important economy
  23. 23. What can other NOC´s learn from Nunaoil´s experience ? Challenges for Nunaoil /Greenland as an NOC in the expanding petroleum sector in the Arctic. Create partnerships with IOC´s & NOC´s that deliver results for the benefits of Greenland and the oil companies Establishment of expertise / know-how within: Geological, Financial and Management sector Development of: technological expertise and competence in E & P Contribute to development of local content and local service sector in the future. What can Nunaoil learn from other NOC´s experience ?
  24. 24. CONCLUSION “Whilst the drilling and licensing activity in 2010 are important milestones in the exploitation of Greenland´s oil and gas potential, they may only be the start of what could be a long and difficult road. Success in such challenging frontier provinces generally demands: first class geological analyses excellent operational practice strong finances persistence and a good share of luck. Most of the current operators and recent applicants will already satisfy the first three criteria, but it may be those who complete the set who are the best places to reap the rewards.” Wood Mackenzie – Upstream Insight – May 2010
  25. 25. World National Oil Companies Congress London, 23 June 2010 The National Oil Company of Greenland Thank You Hans Kristian Olsen hko@nunaoil.gl Heading for the New Frontier!

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