Data in exploration

Erling Frantzen, Business Development Manager at TGS, explains why multi-client seismic data is becoming a viable tool for exploration in the frontier areas of the Russian Arctic.

TGS is one of the major providers of global multi-client data, and has been active on this arena for almost 30 years. Throughout this period the company has established a huge database and gained experience from most exploration areas worldwide. TGS puts a high emphasis on a thorough geological understanding and motivation behind all multi-client projects. When planning new seismic surveys, TGS make use of all knowledge and experience within its staff of highly qualified and experienced geo-scientists. All available geological and geophysical data, including seismic, gravity and magnetic data are used in order to optimise the design and parameters for the various survey areas and the specific objectives within these.

Russian market
It becomes more and more evident that the era of easy exploration in Russia, as in the rest of the world could be behind us. Exploration companies are struggling to replace reserves, and in 2008 oil production in Russia went down compared with the previous year, for the first time since the early 90s.

As a result of the challenges with replacing reserves and increasing (or even maintaining) production levels through the onshore exploration and production, a steadily growing interest for the Russian offshore is taking place. Although the general conception is that these areas contain huge hydrocarbon resources, very little work has been done in order to confirm these assumptions and to identify the most promising areas for further exploration and future drilling.

When combining the current financial instability with fluctuations in the oil price and increased exploration costs, it becomes clear that both the technical and financial challenges tied to the future Russian offshore exploration seem overwhelming.

Limitations
The main obstacle to implementing the non-exclusive concept in full are the limitations imposed by the Russian legislation and licensing policies, including the recent amendments to the Subsoil law, which limits the holders of new offshore exploration acreage to the state controlled Russian oil and gas companies. Also, there are no mechanisms within the current legislation allowing any pre-license regional exploration activity.

However, if an opportunity is provided, the providers of multi-client seismic data will be ready to co-operate both with the authorities as well as current and potential future license holders, in order to find workable solutions that could be of benefit to all parties involved.

Challenges
Multi-client data address many challenges in the Arctic Russia region, including:
Cost: Through the multi-client approach the cost and financial risk is spread between several players, including the seismic companies
Accessibility: Availability of these data to different environments will contribute to optimise the evaluation and development of the resources present
Technology: The most advanced technology and equipment is available, thereby providing the best possible data to the clients
Environment: By using modern vessels and technology the risk of damage to the environment is reduced