Oil and Gas Exploration in the Arctic - Vast, TechnicallyRecoverable Oil and Gas Resources Attract International OilCompan...
Additional InformationArctic Region Holds an Estimated 22% of Global Undiscovered Oil and Gas ResourcesThe Arctic region h...
companies in Russia: mineral extraction tax, oil export duty, and corporation tax. Previously, theRussian taxation system ...
Cairn Energy Focuses Exploration Efforts in Greenland Arctic RegionCairn Energy is focused at carrying offshore exploratio...
4.2 Rosneft Co-operates with IOCs to Explore and Develop Arctic Resources and Venture intoOther International Projects Ope...
9 BP Plc has Strong Presence in the US and Russian Arctic Regions9.1 Exploration Activities in the Arctic Region 9.1.1 Exp...
Figure 20: The Arctic Region, Royal Dutch Shell, Sakhalin II Project, 2012Figure 21: The Arctic Region, Royal Dutch Shell,...
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Oil and Gas Exploration in the Arctic - Vast, Technically Recoverable Oil and Gas Resources Attract International Oil Companies to Increase Presence in the Region

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Oil and Gas Exploration in the Arctic - Vast, Technically Recoverable Oil and Gas Resources Attract International Oil Companies to Increase Presence in the Region

  1. 1. Oil and Gas Exploration in the Arctic - Vast, TechnicallyRecoverable Oil and Gas Resources Attract International OilCompanies to Increase Presence in the RegionReport Details:Published:November 2012No. of Pages:Price: Single User License – US$3995"Oil and Gas Exploration in the Arctic - Vast, Technically Recoverable Oil and Gas ResourcesAttract International Oil Companies to Increase Presence in the Region" is the latest report fromGlobalData, the industry analysis specialist. The report highlights the oil and gas explorationpotential of the Arctic region, providing details of the key exploration areas, major companiesexploring the Arctic and the drivers and challenges of oil and gas exploration in the Arctic. Thereport discusses the leasing and exploration activities in the US (Alaska), Greenland, Canada,Norway and Russia, detailing exploration and production operations of major international oilcompanies involved and key drivers and challenges for development in the environmentallysensitive 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 ArcticReasons 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. 2. Additional InformationArctic Region Holds an Estimated 22% of Global Undiscovered Oil and Gas ResourcesThe Arctic region holds estimated technically recoverable resources of 90 billion barrels (bbls) ofoil, 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 regionis present in the Arctic provinces of north America, followed by the Arctic provinces of the FormerSoviet Union (FSU). The majority of undiscovered natural gas in the Arctic Sea region is located inthe Arctic provinces of FSU, followed by the Arctic provinces of north America and Europe.Advanced Offshore Drilling Technologies to Enable International Oil Companies to IncreaseExploration Activities in ArcticInternational Oil Companies (IOCs) have developed a wide range of technologies that can be usedfor drilling purposes, both in offshore and onshore areas. Royal Dutch Shell (Shell) uses floatingrigs for drilling exploration wells in offshore areas, meaning that once the drilling of wells has beencompleted the rig can be moved to other locations. Although large ice masses are a concern formoving rigs, Shell uses specially developed vessels to manage the ice and protect the rigs. Shellhas also developed various oil spill prevention and response mechanisms in order to prevent oilspills and minimize the impact of any spills that occur. Some of the techniques used by Shell if anoil 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 alarge storage vessel. Controlled burning is a useful and proven technique used in the case of anoil spill. In some cases, dispersants are also used in response to oil spills. Dispersants work in away similar to detergents, breaking oil up into fine droplets which can easily be degraded withoutposing 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 IIproject, which is considered to be one of the largest export oriented oil and gas projects. Thesethree 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 concretelegs, which are very thick and round in shape in order to be able to withstand earthquakesmeasuring up to eight on the Richter scale (Shell, 2012b).Russian Governments New Tax Approach will Encourage Offshore Development in theArctic RegionThe Russian government is taking steps to strengthen exploration operations in the Arctic, throughthe introduction of new tax incentives. There are three forms of taxes applicable for oil and gas
  3. 3. companies in Russia: mineral extraction tax, oil export duty, and corporation tax. Previously, theRussian taxation system did not offer any incentives, but after the return of Vladimir Putin to therole of president, steps are being taken to reduce the tax burden. The government is planning toabolish export duties for offshore exploration operations. It is mandatory for foreign companies toconnect with state oil and gas companies, such as Rosneft or Gazprom, to carry out explorationactivities. There are plans to submit a proposal to the government in late 2012, focusing on theabolishment of export duties for a period of between five and fifteen years, depending on theviability of the project. President Putin has also announced that once the production of the fieldbegins, 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 ArcticResourcesRussian oil and gas giants Rosneft and Gazprom are co-operating with IOCs to explore anddevelop oil and gas resources in the Arctic region. Rosneft, a leading Russian oil and gascompany, has entered into a joint venture with ExxonMobil Corporation, Statoil and Eni SpA inorder to explore vast oil and gas resources in the Arctic region. Gazprom, which has a monopolyin the gas market in Russia, has entered into a joint venture with Shell.Rosneft and ExxonMobil have entered into an agreement regarding the exploration anddevelopment of oil and gas resources in Russia, particularly in the Kara Sea and Black sea. Thisstrategic agreement will benefit both companies in terms of sharing expert knowledge andtechnology. ExxonMobil has acquired interest in Rosnefts assets in the Arctic region. Through thisdeal, Rosneft benefited from ExxonMobils technical knowledge of Arctic exploration, as well asgaining 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 theBarents Sea and Sea of Okhotsk, which are contained within the Arctic Circle. The agreement alsoencompasses Rosnefts participation in exploration operations in the Barents Sea, along with theacquisition of stakes in international projects led by Statoil.Rosneft and ENI Spa have entered into an agreement to carry out exploration activities in theBlack sea and Barents sea. Eni will finance geological studies in order to ensure hydrocarbonpotential and the commercial value of the fields. Rosneft has been engaged in joint ventures with anumber of different international players that possess expertise and knowledge of offshoreproduction, 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 regionamounted to more than RUB95 billion ($3.05 billion). In 2012, Gazprom plans to invest more thanRUB43 billion ($1.38 billion) in the Sakhalin region projects.
  4. 4. Cairn Energy Focuses Exploration Efforts in Greenland Arctic RegionCairn 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 ledthe company to establish its presence in the region at an early stage. This helped the company togain a foothold in the region, as did the advantage of low entry cost and work commitment. Thecompany enjoys its leading position in terms of seismic data acquisition, geological informationand expertise in exploration operations. Cairn Energy is among the leading acreage holders inGreenland.*The contents of this page may be different from the latest version. Please contact us for details.Get your copy of this report @http://www.reportsnreports.com/reports/206073-oil-and-gas-exploration-in-the-arctic-vast-technically-recoverable-oil-and-gas-resources-attract-international-oil-companies-to-increase-presence-in-the-region.htmlMajor points covered in Table of Contents of this report include1 Table of Contents1.1 List of Tables1.2 List of Figures2 Introduction2.1 Overview2.2 GlobalData Report Guidance3 Arctic Region Holds Vast Technically Recoverable Oil and Gas Resources3.1 The Arctic Region Holds Substantial Undiscovered Oil and Natural Gas Resources3.2 Major Sedimentary Basins in the Arctic Region3.3 Oil and gas Exploration in the Arctic: Key Drivers and Challenges 3.3.1 Substantial Oil andGas Reserves and Advanced Offshore Drilling Technologies to Enable International OilCompanies to Increase Exploration Activities in Arctic Region3.3.2 Shrinking Ice Cover in the Arctic to Lead to Increased Exploration and Drilling Activities3.3.3 Russian Governments New Tax Approach to Strengthen Incentives for Offshore Operations3.3.4 Environmental Issues May Hamper Exploration Activities3.3.5 Opposition from Environmental Groups Regarding Exploration in Arctic Region3.3.6 Harsh Climatic Conditions in the Arctic Affect Infrastructure Development Activities3.3.7 Territorial Disputes Affect Oil and Gas Development in Arctic4 Rosneft Forges Alliances With International Companies to Explore Arctic Assets4.1 Exploration Activities in the Arctic Region 4.1.1 Exploration Activities in the Kara Sea Blocks4.1.2 Exploration Activities in the Pechora Sea
  5. 5. 4.2 Rosneft Co-operates with IOCs to Explore and Develop Arctic Resources and Venture intoOther International Projects Operated by IOCs 4.2.1 Rosneft and ExxonMobil Co-operate onExploration and Production Activities in Kara Sea and Western Siberian Basin4.2.2 Rosneft and Statoil4.2.3 Rosneft and ENI5 ExxonMobil has Strong Presence in the US, Canada, Greenland and Russian Arctic5.1 Exploration Activities in the Arctic Region 5.1.1 Exploration in Alaska Arctic5.1.2 Exploration in Canadian Arctic5.1.3 Exploration in Offshore Russia5.1.4 Exploration in Greenland: Orsivik and Puilasoq5.2 Exxon and Rosneft Sign Agreement to Explore Arctic oil in Kara Sea6 Statoil Takes Strategic Approach to Broadening its Presence in the Arctic6.1 Exploration Activities in the Arctic Region 6.1.1 Exploration in Canadian Arctic6.1.2 Exploration in Greenland6.1.3 Exploration in North American Arctic (Alaska)6.1.4 Exploration in Russian Arctic6.2 Major Discoveries in the Arctic 6.2.1 Mizzen6.2.2 Havis6.2.3 Skrugard6.3 Statoil Forms Joint Venture with Rosneft to Carry Out Exploration Activities in Barents Sea andOkhotsk Sea6.4 Statoil Forges Partnership with Gazprom to Develop Shtokman Field7 Cairn Energy Focuses on Greenland Arctic Region7.1 Exploration Activities in the Arctic Region 7.1.1 Exploration in Greenland7.2 Cairn Energy Sell Equity Stakes of Greenland Licenses to Statoil8 Royal Dutch Shell Among the Leading Companies Focusing on Exploration in the ArcticRegion8.1 Exploration Activities in the Arctic Region 8.1.1 Exploration in Alaska8.1.2 Exploration in Canadian Arctic8.1.3 Exploration in Russian Arctic8.1.4 Exploration in Greenland8.2 Gazprom and Royal Dutch Shell Co-operate in the Development of Sakhalin Project
  6. 6. 9 BP Plc has Strong Presence in the US and Russian Arctic Regions9.1 Exploration Activities in the Arctic Region 9.1.1 Exploration and Production in Alaskan Arctic9.1.2 Exploration in Russian Arctic10 Appendix10.1 Abbreviations10.2 Market Definitions10.3 Sources10.4 Methodology 10.4.1 Coverage10.4.2 Secondary Research10.4.3 Primary Research10.4.4 Expert Panel Validation10.5 Contact Us10.6 DisclaimerList Of TablesTable 1: The Arctic Region, Conventional Oil and Natural Gas Resources (Mean EstimatedUndiscovered Technically Recoverable) By Province, 2012Table 2: The Arctic, BP Plc, Alaska Operations, Prudhoe Bay Satellite Fields, 2012List Of FiguresFigure 1: The Arctic Region, Location Map, 2012Figure 2: The Arctic Sea, Probability of the Presence of at Least One Undiscovered Oil And/orGas Field with Recoverable Resources Greater than 50 MMboeFigure 3: The Arctic Sea, Distribution of Undiscovered Oil and Natural Gas Resources, 2012Figure 4: The Arctic Sea, Undiscovered Gas, 2012Figure 5: The Arctic Sea, Undiscovered Oil, 2012Figure 6: The Arctic Sea, Major Sedimentary Basins, Location Map, 2012Figure 7: The Arctic, Exclusive Economic Zone, 2012Figure 8: The Arctic Region, Russia, Exploration Blocks with Rosneft, 2012Figure 9: The Arctic Sea, Russia, Western Siberia Basin, Location Map, 2012Figure 10: The Arctic Region, ExxonMobil Operations, 2012Figure 11: The Arctic Region, Sakhalin-1 Project, 2012Figure 12: The Arctic Region, Assets of Statoil, 2012Figure 13: The Arctic Region, Statoil, Canadian Arctic Operations, 2012Figure 14: The Arctic Region, Statoil, Leases in the Alaskan Arctic, 2012Figure 15: The Arctic Region, Statoil, Skrugard Discovery Location Map, 2012Figure 16: The Arctic Sea, Statoil, Shtokman Project, 2012Figure 17: The Arctic Region, Cairn Energy, Arctic Operations, 2012Figure 18: The Arctic Region, Cairn Energy, Exploration Blocks, 2012Figure 19: The Arctic Region, Royal Dutch Shell, Arctic Operations, 2012
  7. 7. Figure 20: The Arctic Region, Royal Dutch Shell, Sakhalin II Project, 2012Figure 21: The Arctic Region, Royal Dutch Shell, Ormen Lange Oil and Gas Production, 2012Figure 22: The Arctic Region, Royal Dutch Shell, Ormen Lange Gas Filed and Langeled Pipeline,2012Figure 23: The Arctic Region, BP Plc, Assets in Alaska, 2012Figure 24: The Arctic, BP Plc, Alaska Operations, Prudhoe Bay, 2012Figure 25: The Arctic Region, BP Plc, Russian Arctic, 2012Contact: sales@reportsandreports.com for more information.

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