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Navigation

• Chapter 1: Oil and gas resources on the Arctic Con
• 1.1. Russia’s oil and gas industry - a historical
• 1.2. Oil and gas raw material base on the Russia’s
• 1.3. Strategy for developing the oil and gas poten
• 1.4. Oil resources on Russia’s Euro-Arctic shelf
• 1.5. Gas resources on Russia’s Euro-Arctic shelf
• 1.6. Development of offshore oil and gas reserves
• 1.7. Subsoil regulation in Russia
• 1.8. Companies operating on the Arctic shelf
• Appendix I - I
• Appendix I - II
• Appendix I – III
• Appendix I – IV
• Appendix I - V
• Appendix I - VI
• Appendix I - VII
• Chapter 2: Transporting oil and gas in Northwest R
• 2.1. State regulations and strategies
• 2.2. Existing transport systems in Northwest Russi
• 2.3 Navigation
• 2.4. Future plans for oil and gas transport in Nor
• Chapter 3. Environmental risks when extracting an
• 3.1. Environmental risk when carrying out geologic
• 3.2. Environmental risks when exploiting oil and g
• 3.3. The Environmental risk when transporting oil
• 3.4. The state of the environment in the Pechora,
• Appendix III - I
• Appendix III - II
• Chapter 4. Oil and gas accidents – prevention and
• 4.1. Accidents and incidents: causes and consequen
• 4.2. Oil spill classification and responsibilities
• 4.3. Drafting plans for eliminating accidental oil
• 4.4. Eliminating spills
• 4.5 The Barents Sea’s Emergency Rescue Organizatio
• 4.6. Assessing damage and fines
• 4.7. The role of public organisations
• Appendix IV - I
• Appendix IV - II
• Appendix IV - III
• Chapter 5. Environmental impact of oil and gas ac
• 5.1. The Barents Sea
• 5.2. Environmental impact of oil and petroleum pro
• 5.3. The key areas for preserving bioresources in
• Appendix V - I
• Appendix V - II
• Appendix V - III
• Conclusion
• Appendix VI. The future of the northern regions

1.2. Oil and gas raw material base on the Russia’s Arctic shelf

According to Russia’s energy strategy for the period up to 2020, energy policy priorities in the north-west federal district will entail development of the oil and gas industry on the coast of the Arctic Ocean and the shelves of the Arctic seas. The strategy stresses that the Yamal Peninsula and the waters of Russia’s northern seas will become the strategic priority region in terms of gas production over the long term.

For your information:
Russia’s energy strategy for the period up to 2020, which is affirmed by Order (number 1234-r) from the Government of the Russian Federation dated August 28, 2003, is a document which gives concrete expression to the aims, tasks and basic directions of the State’s long-term energy policy over the corresponding period, taking into account the emerging domestic and foreign situation in relation to the energy sector. One of the instruments for implementing the energy strategy is a Federal programme entitled “An energy efficient economy.

Three energy strategies have been written during Russia’s brief post-Soviet history. Declaring a commitment to basic values, such as energy self-sufficiency and security of the country, energy saving and a reduction in the negative impact on the environment, each new version of the strategy changes, along with the quantitative parameters, the principles of State policy. It may be that all three documents are combined into just one - not one of them has become a guide for authorities or for business …” (Neftegazovaya vertical no 18/2005 )

The opening up of fields in the Arctic region will be accompanied by a number of problems and require significant investment in connection with difficult natural climatic conditions, remoteness from existing oil and gas industry infrastructure. Furthermore, there is an urgent need to implement new technological solutions associated with production and transportation which guarantee conservation of the environment in the difficult conditions encountered in Polar Regions.

The current state of oil and gas development in Russia is characterised by a reduction in exploration, and low rates of regeneration. The volumes of geological survey work do not ensure regeneration of the mineral raw materials base within the oil and gas industry. The most profitable parts of the fields and deposits are being developed, not the more challenging ones.⁶ Oil and gas extraction on the principal mainland fields has fallen over the last few years. The probability of opening up new, large-scale hydrocarbon fields on the mainland had already decreased by the start of the 1970s. The yield of proven volumes of oil and gas resources present on the mainland currently stands at 50%.⁷

For the time being, oil and gas in the region in question is only being extracted on Kolguev Island and in Cape Kharasavey in the eastern part of the Barents Sea, as well as in the Bay of Obsk.⁸ In 1998, at the Peschanoozer oil field on Kolguev Island, the Federal State unitary enterprise “Arcticmorneftegazrazvedka” extracted 26,000 tonnes of oil.⁹

For your information:
Potential Resources - this is the initial (i.e. prior to the start of industrial operation) volume of oil, gas and condensate in the subsoil of sedimentary structures, the industrial oil and gas content of which is proven by the results of geological survey work. The total potential resources are made up of volumes of cumulative extraction, current site reserves under categories А, В, C1i and C2, prospective resources in category D0 (C3) and predicted resources in categories D1 and D2. See end of this chapter for a thorough description of this system of classification.

According to estimates, the total potentially recoverable offshore oil and gas resources in Russia’s are approximately 100 billion tonnes of oil equivalent (made up of 16 billion tonnes of oil and more than 82 trillion cubic metres of gas). The bulk of these resources (around 76%) are located on the shelves of the Barents and Kara seas (fig. 1). Only 9-12% of the total potential offshore oil and gas resources on the Russian shelf have been explored.¹⁰

Fig. 1. The distribution of oil and gas reserves between the various seas on Russia’s Continental shelf as estimated in 2005.

The Barents Sea region is primarily gas-bearing, according to estimates of the hydrocarbon potential which have been carried out since the start of the 1970s. According to estimates from the All-Russian Scientific Research Institute concerned with geology and mineral resources in the Pacific Ocean, recoverable oil resources in the Russian sectors of the Barents and Pechora Seas account for 9% of the quantity of the potential resources.¹¹

According to the Ministry of Natural Resources, the resources of Russia’s continental shelf comprise 13 billion tonnes of oil and 20 trillion cubic meters of gas. The Ministry of Natural Resources foresees that if the pace of work on the shelf picks up, oil production will increase to 10 million tones by 2010, and to 95 million tonnes, by 2020, while gas will increase to 30 billion cubic meters and 320 billion cubic meters respectively.

In 1982 exploratory drilling began in Russian Arctic waters. Over the next three years, two gas fields, Murmansk and Severo-Kil’din, were explored in the Barents Sea. Five years later the Shtokman and Ludlov gas fields were explored for the first time. These fields are giant in terms of gas condensate reserves. An additional three fields were revealed during the Soviet era in the Pechora Sea: the Pomor gas condensate field in 1985, the Severo-Gulyaev oil and gas condensate field in 1986 and the large-scale Prirazlomnoe oil field, which was explored by the production organisation Arcticmorneftegazrazvedka, which is part of Glavmorneftegaz, in 1989. ¹²

For your information:
Structure - this term is used when determining appearance, size and shape, as well as the conditions under which rock-forming, mineral and organic components are to be found. The structure depends on the conditions under which the rock was formed. The variety of structures is assigned according to the appearance of the rock-forming minerals, the degree of crystallinity of the rock, the absolute and relative dimensions of the crystals, and so on.

Recoverable potential resources of oil and gas are 22.7 billion tonnes in the Barents Sea. In the potential resources structure, gas-forming hydrocarbons predominate (21.6 trillion cubic metres), with liquid resources (oil and condensate) accounting for 1.1 billion tonnes. In the Pechora Sea, recoverable potential resources in terms of oil and gas are estimated at 4.9 billion. In this estimate, condensate accounts for 2.2 billion tonnes, and gas amounts to 2.7 trillion cubic metres.¹³

For your information:
Field - a natural accumulation of mineral resources which, depending on quantity and quality and the prevailing economic conditions, may be the subject of industrial development.
Gas field - a natural, commercial accumulation of gas in the form of one or several isolated beds in various types of reserves with porous or fractured reservoirs confined to a local structural element of the Earth’s crust which combines these beds over one area.
Oil and gas field - geological structures where geological formations possess one or more commercial oil or gas accumulations in the vertical cross-section.

Within the oil resources structure, category D2 resources predominate. A large part of the oil resources are in the lowest categories, while all prospective (category С3) resources and reserves (categories С1+С2) are also concentrated in the Pechora Sea. For a throughout classification of the categories see the end of this chapter “Classification of oil and gas Reserves”.

Fig. 1: Main oil and gas fields on Russia’s West Arctic shelf.¹⁴

In the Barents Sea, oil fields have only been opened in the Norwegian sector. There is a prognosis that approximately 1 billion tonnes of recoverable oil resources exist in the Russian sector of the Barents Sea (including in the disputed area), but this is not proven. In the potential resources structure of the Barents Sea, gas dominates, with oil accounting for approximately 3%.

For your information:
The “Grey zone” between Russia and Norway – a marine area disputed between Russia and Norway where vessels from both countries have the right to fish.
The territorial dispute between Russia and Norway on fishing issues in the Spitsbergen archipelago region dates back to the 1920s.
Since 1978, issues concerning the exploitation of fish have been resolved annually by agreements concluded between both parties.

total, 12 areas on the shelf of the Barents Sea (including Pechora) which may contain oil have been accentuated.¹⁵

Pechora Sea:

- the north-eastern part of the Arctic shelf which joins the oil and gas-bearing regions of Varandey-Adzvin and Khoreyver, and the oil and gas-bearing region of Gulyaev-Dolgin (section 1);
• the north-western part of Kolguev oblast (section 2);
• a part of the Korgin zone (section 3).

Among these, section 1 is regarded as having the richest oil resources. In the north-west part of Kolguev Island, these resources are only expected to occur in the smallest beds of oil reserves and, within the Korgin section, on composite beds with a significant share of oil

The Barents Sea shelf:

• the Kola shelf (section 4);
• the central Barents Sea elevation (sections 5, 7, 8 and 9), a large part of which belongs to the area disputed between Russia and Norway;
• the northern part of the shelf (section 10);
• the Admiraltey-Prinovozemel oblast (sections 11, 12);

Here’s a thought...
According to specialists from the Norwegian companies, Statoil and Hydro, large oil and gas deposits are located in the “grey area” of the Barents Sea. However, because of the indeterminate nature of the borders, neither party can proceed officially with the study and exploration of these deposits.

Sections 5, 7, 8 and 9 are located almost entirely within the limits of the “grey area” on the central Barents Sea elevations. The northern part of the Barents Sea (section 10) may contain oil-yielding rocks which determine the possible existence of oil deposits. The Admiraltey-Prinovozemel oblast (sections 11, 12) is considered promising in terms of its oil-bearing capacity.¹⁶

For your information
Oil - a combustible, oleaginous liquid which is prevalent in the Earth’s sedimentary crust. It is the most important mineral resource. A complex mixture of alcanes, several cyclanes and aromatic hydrocarbons, as well as oxygenous, sulphurous and nitrogenous compounds. In excess of 75% of the oil’s general make-up centres on hydrocarbons. In addition to hydrocarbons, the substances found in oil in the greatest quantities are: sulphur, nitrogen and oxygen (up to 4% sulphur, 1% nitrogen and just under 1% oxygen).
A distinction is drawn between the following oil types:
low-density oil (0.65-0.87 g/cm)
medium-density oil (0.871-0.91 g/cm)
heavy oil (0.91-1.05 g/cm)

or depending on the quantity of sulphur admixtures:
low-sulphur (up to 0.5% S)
medium-sulphur (0.5-2% S)
high-sulphur (in excess of 2% S)

According to geologists, sections in the Barents Sea from Russkoye to the West Mitushinsky can contain from 180 to 700 million tonnes of fuel equivalent.¹⁷

For the time being, hydrocarbon extraction is only carried out on Kolguev Island and in the Cape Kharasavey district in the eastern part of the Barents Sea, as well as in the Bay of Obsk.¹⁸ In 2006, production on the Russian shelf comprised 4.2 million tonnes of oil – only 0.9% of the total production in the country.¹⁹

Table: Commercial fields in the oil and gas-bearing province of the Western Arctic shelf²⁰

Footnotes:
[6] Russia’s energy strategy for the period up to 2020. Affirmed by Order (number 1234-r) from the Government of the Russian Federation dated 28 August 2003 Back
[7] Alex Khrol. Shtokman may be a start. What next? PETRO magazine. Special edition. ONS 2006 Back
[8] http://www.murmanchanin.ru/mrm_oil_gas_news6.htm (2006 year) Back (11.10.2005)
[9] http://www.ashng.ru/company/stockholders/amngr/ (2006 year) Back
[10] Russia’s energy strategy for the period up to 2020. Affirmed by Order (number 1234-r) from the Government of the Russian Federation dated 28 August 2003 Back
[11] "OIL AND GAS RESOURCES IN RUSSIA’S NORTH-WEST REGION AND THE FUTURE PROSPECTS FOR ITS DEVELOPMENT”, M.D. Belonin, O.M. Prishchepa (All-Union scientific research and geological exploration institute) Back
[12] http://www.gazprom.ru/articles/article14395.shtml (2006 year) Back
[13] “OIL AND GAS RESOURCES IN RUSSIA’S NORTH-WEST REGION AND THE FUTURE PROSPECTS FOR ITS DEVELOPMENT”, M.D. Belonin, O.M. Prishchepa (All-Union scientific research and geological exploration institute) Back
[14] Source: Arctic Centre, Information Service, University of Lapland Back
[15] Oil in the Barents Sea. Valeriy D. KAMINSKY, Oleg I. SUPRUNENKO, Carina G. VISKUNOVA, Victoria V. SUSLOVA, All-Russian scientific research institute concerned with geology and mineral resources in the Pacific Ocean named after I.S. Gramberg, 7th INTERNATIONAL CONFERENCE AND EXHIBITION ON THE DEVELOPMENT OF OIL AND GAS RESOURCES IN THE RUSSIAN SECTOR OF THE ARCTIC AND THE CONTINENTAL SHELF OF THE CIS. RAO/CIS OFFSHORE 2005 Back
[16] Oil in the Barents Sea. Valeriy D. KAMINSKY, Oleg I. SUPRUNENKO, Carina G. VISKUNOVA, Victoria V. SUSLOVA, All-Russian scientific research institute concerned with geology and mineral resources in the Pacific Ocean named after I.S. Gramberg, 7th INTERNATIONAL CONFERENCE AND EXHIBITION ON THE DEVELOPMENT OF OIL AND GAS RESOURCES IN THE RUSSIAN SECTOR OF THE ARCTIC AND THE CONTINENTAL SHELF OF THE CIS. RAO/CIS OFFSHORE 2005 Back
[17] PBK Daily Ljudmila Podobedova 07.05.2007 (2006 year) Back
[18] http://www.murmanchanin.ru/mrm_oil_gas_news6.htm (2006 year) Back (11.10.2005) Back
[19] BarentsObserver.com, 15 February 2007 Back
[20] CONCEPTUAL BASES FOR ENGINEERING AND GEOLOGICAL SURVEYS OF THE OIL AND GAS-BEARING PROVINCE OF THE WESTERN ARCTIC SHELF. Kozlov S.A. All-Russian scientific research institute concerned with geology and mineral resources in the Pacific Ocean of the Ministry of Natural Resources in the Russian Federation, St. Petersburg, Oil and gas business journal, 2006 http://www.ogbus.ru (2006 year) Back