The document discusses managing risks of industrial operations in the Arctic region. It notes that the Arctic is an area of growing opportunity and interest for activities like oil and gas exploration. However, operations in the Arctic also face unique risks due to its remote and harsh environment with cold temperatures, ice, darkness and multi-year ice conditions. The document advocates for a risk-based approach to regulation and operations in the Arctic that requires at least the same risk level as the North Sea. It also emphasizes the need for adequate prevention, response and rescue capabilities to mitigate risks from potential accidents.

1. Managing Risks of Operations in the High North
Korea-Norway Business Cooperation Seminar in Seoul
Jon Rysst
May 15th 2012

2. The Arctic is very diverse
Managing Risks in the Arctic
May 15th 2012
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3. A region of opportunity and interest leading to opening of
new areas to industrial activity
«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
2012 2013 2014 2015-2020
«High Arctic» operations
 Extended season drilling
 Oil/Gas offshore production
 Shipping and mining
 Multi-year ice conditions
Managing Risks in the Arctic
May 15th 2012
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4. We should, as a minimum, require
The same risk level in the Arctic as in the North Sea
Risk  Probability x Consequence North Sea risk
Severity of consequences and probability drive risks Additional risk
Risk
Acceptable risk level
Rescue
Material failure
Oil spill
Risk mitigated through technology and regulatory measures
Managing Risks in the Arctic
May 15th 2012
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5. The five Arctic coastal states have fundamentally different
regulatory approach to offshore petroleum activities
Performance-based
Prescriptive
Mainly Hybrid approach
Prescriptive and
prescriptive that uses Performance- Performance-
detailed
regulations, often prescriptive and based approach based, requires
regulations.
requiring industry performance- with non-binding the operator to
However, not yet
standards based guidelines and adopt
fully adopted for
through requirements recommended international best
offshore
regulatory depending upon standards practices
activities.
incorporation. the circumstance
A performance based system is more suited for the Arctic due to better management
of new challenges, technologies and risks
Managing Risks in the Arctic
May 15th 2012
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6. 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
Managing Risks in the Arctic
May 15th 2012
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7. 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
Managing Risks in the Arctic
May 15th 2012
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8. Safeguarding life, property
and the environment
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Managing Risks in the Arctic
May 15th 2012
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