Dreki Area Pre-Round Introduction - Stavanger 2011

6 June 2011, Stavanger Oil Museum

Chair: Larus Olafsson, Senior Legal Advisor, NEA

08:30-09:00 REGISTRATION/COFFEE

09:00-09:15 Opening Remarks

- Dr. Gudni A. Johannesson, Director General of NEA

09:15-09:30 Licensing of the Dreki Area

- Thorarinn Arnarson, NEA

09:30-09:45 The New Icelandic Hydrocarbon Fiscal Regime

- Thordur Reynisson, Ministry of Industry, Energy and Tourism

09:45-10:15 Iceland Frontier Exploration - Potential Review of the Jan Mayen

Micro-Continent

- Anett Blischke, Iceland GeoSurvey

10:15-10:50 COFFEE

10:50-11:10 Geology of the Jan Mayen Microcontinent

- Christian Magnus, Norwegian Petroleum Directorate

11:10-11:30 Seismic from the Jan Mayen Ridge, JMR-01 & JMR-08 Surveys

- Jan Dalene, CGGVeritas

11:30-12:00 Discussion

12:00-13:00 LUNCH

Iceland

Licensing of the Dreki Area

Thorarinn Arnarson

Stavanger

6 June 2011

Presentation topics

• Licensing

• Environmental conditions

• Geological and geophysical data

4

• Set to open 1 August 2011

• Deadline for applications 1 February

2011

• Norway (Petoro) may participate as an

active partner with up to 25% in any

licence granted within the agreement

area

• Licensing system similar to other

European countries – Hydrocarbons Act

transposes EU Directive 94/22/EC into

Icelandic law

Jan Mayen

Agreement

Area

Second Icelandic licensing

round – northern Dreki Area

Feedback after first round• Hydrocarbon tax system in need of

improvement

• No standard JOA

• Clarification of an issue with ESA regarding

registration of companies

• More data would be good

Preparations for second round• Revision of terms

– JOA

– Fiscal terms

• Taxation of hydrocarbon activities

• Necessary changes due to JOA

– Hydrocarbon Act improvement

• Discussion with Norway on the practicalities of

their right to participate

• Cooperation with Norway on research

Terms of second round• Not a pre-defined a limit on sizes of license

areas

• Standard JOA to be submitted as part of

documentation

– Similar to Norwegian JOA

• Company arrangement for licensees similar to

Norwegian model

Terms of second round• ESA-complaint regarding registration of

companies handled in modification of

Hydrocarbons Act

– Branch or agency of company registered in an

EEA country sufficient for registration

• ESA-complaint regarding bases handled

similarly as Norway

Environmental conditions

Climate and sea ice• Cold oceanic climate

• Mean temp. < 10°C all year round – ca. 5 to 8 °C in summer, -2 to 0 °C in winter

• Yearly precipitation ca. 700 mm. Winter lows give snow up to 25 to 30 cm/day

• Mean wind speed ca. 10 m/s in winter, but 6 m/s in summer. Over half of obs. < 12 m/s.

• Frequent fogs in summer, icing during winter

• The edge of sea ice has been north and west of

the area since the cold period 1965–71; not

considered to be a problem

10

Surface currents in the North-Atlantic

Currents• Measurements conducted by

taking ADCP profiles from a

ship and by an anchored

mooring

• Bottom current velocity in the

area on the order of 5 cm/s

Dynamic surface elevation (Mortensen 2004)

Highest wave – 98%, 1 yr og 100 yr

98%

1 yr [m]

100 yr [m]

Wave height in the Dreki Area is less than at the west-coast of Norway

13

Main conclusions of the SEA

• Water depths 1000 to 2000 m in 80% of the area

• Great variability in biomass and consequently in habitats

• The area is important feeding ground for pelagic fish, especially herring, and possibly for whales

• On-site current measurements needed (collected 2007-2008)

• Need for registration and mapping of delicate habitats of benthic species (started in 2008)

• No information on demersal fish in the area (investigated in 2009)

Geophysical and geological data

Available data information system

Iceland Continental Shelf Portal

ORKUSTOFNUNNational Energy Authority

Online GIS based web-portal (National Energy Authority & Iceland Geosurvey)

http://www.icsp.is

2D Seismic reflection data surveys over the Jan Mayen Area

ORKUSTOFNUNNational Energy Authority

NPD-NEA SurveysCommercial Surveys

2009 Spectrum

commercial survey,

reprocessed JM-85 &

JM-88 data

2009 CGG Veritas,

reprocessed part of the

IS-JMS-01 data

Academic ODP & DSDP cruises

• 5 wells during Leg 38 in 1974

• 1 well during Leg 151 in 1993

• 2 wells during Leg 162 in 1995

USSR 1973 & NEA-NPD 2010

• 5 seafloor samples in 1973

• 25 samples on the North Dreki

area, piston coring device, most

samples >2m penetration, 2010

Borehole & seafloor samples

in the Jan Mayen area& ODP

Cruises

ORKUSTOFNUNNational Energy Authority

ORKUSTOFNUNNational Energy Authority

GGA,2005 - (http://www-odp.tamu.edu/publications/heatflow/ODPReprt.pdf)

Global geothermal gradient, heat flow & thermal

conductivity study

High resolution, multibeam

bathymetric surveys

• 2008 (Marine Research

Institute & NEA)

• 2010 (NPD) – Norwegian

area

ORKUSTOFNUNNational Energy Authority

Seismic reflection & refraction surveys in the Jan

Mayen area

ORKUSTOFNUNNational Energy Authority

Important OBS Data ResearchAcademic Surveys

ORKUSTOFNUNNational Energy Authority

North Atlantic - Free Air Gravity DataCanadian Geological Survey

North Atlantic - Magnetic Anomaly DataCanadian Geological Survey

ORKUSTOFNUNNational Energy Authority

ORKUSTOFNUNNational Energy Authority

North Atlantic - Bouguer Gravity Anomaly DataKarl Gunnarsson & Hjálmar Eysteinsson, 1995

JMMCJMMC

JASJAS--1111

JAS-05

IcelandIceland

NB-07

?

?

?

JASJAS--11: A collaboration project between NGU, NPD and 11: A collaboration project between NGU, NPD and OrkustofnunOrkustofnun

The new aeromagnetic survey will provide a comprehensive and state of the art The new aeromagnetic survey will provide a comprehensive and state of the art

aeromagnetic dataset of the Norway Basinaeromagnetic dataset of the Norway Basin

Kolb

ein

sey

Rid

ge

The data acquisition will start during summer

2011 and is scheduled for completion by the

end of September 2011

Contact person: L. Gernigon

NGU - Geological Survey of Norway, Trondheim

Fill the gaps !

TECHNICAL SPECIFICATIONS

Line/tie-line spacing: 6 km / 20 km

Sensor elevation: approx. 230 m

Area coverage: 80,000 km²

Total flying distance: 17.600 km

Aeroplane: Piper Chieftain (?)

Magnetometer:Scintrex Cesium Vapour

MEP410

Noise envelope: 0.1 nT

Sensor: CS-3 mounted in towed bird

Navigation: Real time differential GPS

Navigation accuracy: < 5 m

Base magnetometer: Scintrex Envi-mag

JMMCJMMC

JASJAS--1111

New survey configurationPrevious NGU aeromagnetic compilation

Summary

• Second licensing round on Icelandic

continental shelf

– Set to open on 1 August 2011

– Deadline for applications set for 1 February 2012

Thanks for your attention

Acknowledgements:

Kristinn Einarsson, Inga Dóra Gudmundsdóttir, Lárus Ólafsson, Thorvaldur

Bragason at NEA;

Anett Blischke, Karl Gunnarsson, Gunnlaugur M. Einarsson, Bjarni Richter,

Steinar Thor Gudlaugsson at Iceland Geosurvey