Hans kristen olsen's presentation slides from the 2010 World National Oil Companies Congress that took place in June in London.

1. World
National Oil Companies Congress
London, 23 June 2010
Opportunities and challenges in
the development of oil and gas resources
off Greenland´s coast

2. Overview
How large is the opportunity of
Greenland?
Overcoming the challenges of
petroleum exploration in the Arctic
Environment considerations and
strategies
What can other NOC´s learn from
Nunaoil´s experience ?
Conclusion

3. Area 2.166.086 km2
Ice cover (80%) 1.754.530 km2
Ice free area (20%) 433.217 km2
Population (2009) 56.462
Nuuk (Capital) 16.500 (28%)
Number of towns: 18 (84%)
Number of settlements: 55 (16%)
Offshore wells 6
Onshore well 1
E & P licenses (2006) 2
E & P licenses (2010) 13
Acreage (2006) 6.882 km2
Acreage (2010) 131.364 km2
Number of companies (2006) 1 + Nunaoil
Number of companies (2010) 8 + Nunaoil
Quick facts about Greenland
No exploitation
of
Oil & Gas !Icecap thickness
> 3000 m

4. Quick facts about Greenland
Sedimentary basins - 825.000 km2
~ 4 x (Viking & Central Graben system)

5. OBJECTIVES BY GOVERNMENT OF GREENLAND
There is broad consensus in Greenland that efforts should be
made to develop the mineral and petroleum resources sector
into a sustainable industry…
… that can make a positive contribution to the economic
development of the country and the creation of new jobs…
...and export revenue in addition to the fishing industry.

6. OBJECTIVES BY GOVERNMENT OF GREENLAND
“ We need a stronger economy and we have to utilize the opportunities
that oil could bring us.
Environmentalist around the world advise us not to exploit the oil
reserves. But we are not in the situation where we can replace the
declining income from our fisheries, and we don´t have any other
resources for the time being that hold as much potential as oil. ”
Kupik Kleist, Premier of Greenland

7. Nunaoil A/S
The National Oil Company of Greenland
Established in 1985
Mission: Represent the Greenland Home Rule Government in
oil exploration and exploitation in Greenland.
Shareholder: 100 % - Government of Greenland
Board members: 5
Number of employees: 7
Website: www.nunaoil.gl
E-mail: nunaoil@nunaoil.gl
Tuapannguit 38, 3900 Nuuk

8. How large is the opportunity of Greenland?
Arctic seafloor
is hot !
G
reenland
”Arctic may harbour as much as 22% of
the technically resources in the world”
The area north of Arctic Circle holds:
~ 90 BB of undiscovered,
technically recoverable oil
~ 1,670 TCF of technically recoverable
natural gas
~ 44 BB of technically
recoverable natural gas liquids
Courtesy by USGS
Rest of
the world
North Africa,
Caspian Sea,
Middle East
Arctic

9. How large is the opportunity of Greenland?
>70 % of the mean undiscovered
oil ressource is estimated to occur
in five provinces:
Arctic Alaska
Amerasia Basin
East Greenland Rift Basins
(~31 BBO)
East Barents Basin
West Greenland - East Canada
(~17 BBO) Courtesy by USGS

10. Petroleum exploration in the past
21.000 km seismic in early 1970´ies
Strong increase in oil price
6 licenses – 21 companies
46 block – 18.502 km2
Petroleum exploration in the 1970-ies

11. Petroleum exploration in the past
“Pelican” drilling Kangâmiut-1 ”Sedco 709” drilling Nukik 1
Additional 16.000 km seismic
5 offshore wells in total drilled in 1976 and 1977
All wells were dry
Licenses relinquished in 1978
1997 – Hydrocarbons detected by GEUS in Kangâmiut 1 well
NU98
03-10
2
NU
98
03
-10
1
NU
98
03
-10
1
Ikermiut-1
Hellefisk-1
Kangamiut-1
Nukik-2
Nukik-1
Petroleum exploration during the 1970´-ies

12. Petroleum exploration in the past
1984 – license granted for 12 years
ARCO (operator) (63,74%)
Arktisk Minekompagni (11,25%)
Nunaoil (carried) (25,00%)
1988: AGIP (co-operator)
Investment: 1 B DKR
Seismic: 1800 km
License relinquished in 1990
Jameson Land – Central East Greenland
June 2010
~10.000 km2

13. Petroleum exploration in the past
1995 – 1996
Operator: GrønArctic Energy
Co-operator: Platinova A/S
3 thin holes (400 – 900 m)
1 conventional drilling – GRO #3
Ca. 5 km west of planned target
Depth – 2996 m – dry
Later quantitative log interpretation by
GEUS suggested hig hydrocarbon saturation
in thick ss - units
Investment – Cdn$ 12,3 mio. ~ 70 mio.dkr.
License returned in 1996
The onshore seeps indicate that the local basins
may generate large volumes of hydrocarbons
Nuussuaq
GRO # 3

14. Petroleum exploration in the past
Fylla license - 2000
Qulleq 1 well
Operator: Statoil
Co-operators: Phillips, DongEnergy,
Nunaoil
Depth: 2937 m – Dry
License relinquished in 2001
West Navion

15. Cairn Energy
Chevron
DongEnergy
Exxon
EnCana
Husky Energy
P. A. Resources
Petronas
Nunaoil A/S (carried)
The oil and gas sector in Greenland
The stakeholders in
petroleum exploration

16. 2009 – Record year for activities
Seismic acquisition : 1970 - 2009
5wells
1well

17. Data coverage1999 - 2009
1999 2009

18. Baffin Bay licensing round
Baffin Bay – 1 May 2010
14 Blocks ~ 151.000 km2
Block size: 8.000 – 15.000 km2
13 applications -prequalification round
17 E&P applications by 12 companies
Co-financing projects TGS / Nunaoil
53.500 km Aeromag
15.119 km 2D Seismic
15.119 km Gravimetry
Co-financing projects Infoterra / Nunaoil
Satellite slicks- and icestudies

19. Greenland Sea licensing round
The KANUMAS project: 1990-96
6 IOC (preference rights)
Nunaoil - operator and carried
2D seismik : 7000 km
Seismic vessel: F 357 Thetis (Danish Navy)
Co-finances projects TGS / Nunaoil
Aeromag: 103.823 km (2007-08)
Gravimetri: 84.033 km
2D Seismik: 14.659 km
Greenland Sea – 15 December 2012

20. Exploration drillings 2010 ?
21 December 2009: Cairn announced securing of Stena Forth
04 January 2010: Cairn announced securing of Stena Don
11 June 2010: Application submitted for approval to the Government of
Greenland by the Minister of Mineral Resources
15 June 2010: YES / NO ?
Stena Forth Stena DonPelican Sedco 709

21. Challenges for Greenland
Physical challenges:
Sensitive marine environment / ecosystem
Harsh arctic climate
Long cold winters – short summers
Sea ice and icebergs
Wind and ocean currents
Polar darkness – midnight sun
Global warming?

22. Challenges for Greenland
National challenges:
Limited infrastructure
No roads between towns or settlements
2 international airports
12 fixed-winged airports for Dash-7
Few harbours suited for offshore services
Lack of skilled workforce
Fisheries still most important economy

23. What can other NOC´s learn from Nunaoil´s experience ?
Challenges for Nunaoil /Greenland as an NOC in the expanding
petroleum sector in the Arctic.
Create partnerships with IOC´s & NOC´s that deliver results for the
benefits of Greenland and the oil companies
Establishment of expertise / know-how within:
Geological, Financial and Management sector
Development of:
technological expertise and competence in E & P
Contribute to development of local content and local service sector in
the future.
What can Nunaoil learn from other NOC´s experience ?

24. CONCLUSION
“Whilst the drilling and licensing activity in 2010 are important
milestones in the exploitation of Greenland´s oil and gas
potential, they may only be the start of what could be a long and
difficult road. Success in such challenging frontier provinces
generally demands:
first class geological analyses
excellent operational practice
strong finances
persistence and
a good share of luck.
Most of the current operators and recent applicants will
already satisfy the first three criteria, but it may be those
who complete the set who are the best places to reap the
rewards.”
Wood Mackenzie – Upstream Insight – May 2010

25. World
National Oil Companies Congress
London, 23 June 2010
The National Oil Company of Greenland
Thank You
Hans Kristian Olsen
hko@nunaoil.gl
Heading for the New Frontier!