Strategic risk management of development of the Arctic offshore fields

Abstract

The authors of the article study the basic risks in development of hydrocarbon offshore fields in the Arctic as well as methods of managing the existing risks. Development of hydrocarbon offshore fields in the Arctic is connected with numerous challenges due to its unique natural and climatic conditions (ice pack, squally winds, rough sea, etc.). Any activity in such conditions makes high demands for the investment (realization of such projects is extremely capital intensive) and for environmental and industrial security. Due to the high level of work complexity currently only one offshore field is being developed in the Arctic. However, Russian energy companies are considering the perspective possibility of extraction of hydrocarbon resources in such conditions. In order to explore the Arctic offshore fields efficiently it is necessary to apply the methods of risk management which are able to minimize the possibility of unwanted events. In most cases the method of risk management is chosen depending on the stage of realization of the project on developing an offshore field: prospecting, exploration or exploitation of a deposit. The authors of the article conditionally divide the risk management methods into two categories: universal (which can be applied at any of the above mentioned stages of the deposit's development) and unique (to be used only at one certain stage). The analysis conducted made it possible to reveal the main advantages and disadvantages of the risk management methods under consideration. The combination of universal and unique methods became the basis for the risk management system which takes into account the specifics of the stages of development of Arctic offshore hydrocarbon fields.