E Kamaev, Yu. Tarasov Murmansk Shipping company. Russia

1) Potential of hydrocarbons production in eastern part of Pechora Sea.

Analysis of oil and gas potential of Pechora Sea demonstrated the considerable prospects for its exploration. Four oil and one oil and gas fields are discovered by drilling and a lot of prospects are mapped by seismic there.

The shelf of Pechora Sea will be subject to geologic exploration at the Medynskoe deposit up to 2010. Geologic exploitation is planned in Prirazlomnoe region since 2005-2006. Dolginsky block is top priority for development and will be licensed for exploration in the near future.

2) Risks and necessary technologies.

Access to the rich deposits of the shelf is substantially limited by natural conditions of the area. Sea transportation of oil and gas from the Pechora Sea as well as oil and gas exploration are potentially risky for this highly vulnerable environment. Safety and environmental impact has to be seriously considered in all parts of transportation system.

Arctic shelf development requires new technique and technology of field construction and offshore terminal sendees. Among them such peculiar needs as icebreaking escort services, ice management on terminals, oil spill management in ice conditions, etc. All this requires huge capital investments.

3) Integrated sendee system for oil production, transshipment and transportation.

It is obvious that "stand-alone" use of expensive equipment and sendees puts an additional burden on production costs and couldn't be considered as cost-effective approach. The key solution for successful development of oil and gas deposits in the region is consolidation of efforts and fluids of all parties involved. There is demand for integrated coordinating structure that would provide whole range of required services including icebreaking, towing, supply, etc.

This structure would operate fleet required for all projects in the region. Such integration ensures lower management costs and service flexibility. Complex approach would be economic and provide safety and environmental protection of hydrocarbons development.

4) MSCO is reliable partner of transshipment and transportation of hydrocarbons.

The Murmansk shipping company can be a nucleus of such a structure. Unique experience of ice management and icebreaking services allows the company to provide most effective support to crude oil transshipment and transportation.

MSCO has exercised reliable technical assistance and safe technologies of oil loading in severe arctic conditions. Company has successfully operated Arctic Submerged Loading Terminal at Varandey for several years. This terminal is the unique loading facility working year-round under ice conditions in this region. The Murmansk shipping company has both intellectual and technological resources that necessary for organization of complex services in Arctic region. The team of highly qualified specialists of the company is ready to solve any issue in conditions of Far North.

ARCTIC SHELF OIL AND GAS CONFERENCE 2004