Paparazzi Ethnography

Workshop: INTSOK 11th Russian and Norwegian Oil and Gas Conference: “Unlocking the High North Potential — Together!” 

Corinthia Hotel, St. Petersburg, Russia, January 29-30, 2013.

1/31 St. Petersburg Epilogue: I was lucky to meet Galina Nazarova, journalist covering economic and finance for daily newspaper Санкт Петербургские Ведомости, at the INTSOK workshop. Galina kindly invited me back to the office for a tour, located on 25, Marata Street, not but several minutes walk from Nevsky Prospect’s Corinthia Hotel, where I was staying for the workshop.

There, I became interested in the practice of stringing papers together on a daily basis for journalists to browse.

Reading areas fascinate me. The various reading rooms, libraries, and other such points of pausing to direct attention on text are important spaces in my study of experts.

Galya and I became buddies shortly after meeting at the INTSOK workshop, where we exchanged notions about the quality of presentations, and where I begged her to send me her photographs of presentations after I misplaced my I-Phone.

After watching the way she would rush up to presenters after they came off the podium, peppering them with more questions, I began thinking that Galya might provide a great local counterpoint to our ERC proposal due shortly. This was perhaps a key point of our conversation the very next day, which also gave me an opportunity to see first hand, the journalist environs of the oldest newspaper in Russia.

In the images on the left, I captured the current front page, and the back page, which is an advertisement of the newspapers sponsor.


1/30: Well, we are well into the workshop conference and I have not been able to convey all the ideas expressed by speakers and all the subsequent ideas I have been able to exchange with folks here at the conference. But they are in my head, and I did experience them.

I should mention that INTSOK stands for Norwegian Oil and Gas Partners, though I have yet to discover for what the acronym stands.

It is a recently established organization, just 5 years old, but influential, as seen by the rosters of founders which include government (Ministries of Foreign Affairs, Petroleum and Energy, Trade and Industry), professional organizations (Federation of Norwegian Industries, Norwegian Shipowners Association, Norwegian Oil and Gas Association) and the Statoil company.

Before continuing, I should like to relate a short anecdote.

I had a great set of exchanges with gobs of folks here in The Corinthia, St. Petersburg, bumping into familiar faces so recently — from different towns, Houston, Stavanger, Høvik, Oslo — providing a sense of the uncanny, moments of confusion where we cannot place each other, and then we burst out laughing when it turns out we remember when just a few weeks previously, we gorged ourselves over meals confidently, chatting face-to-face, in another part of the world.

At the coffee bar today, I bumped into Boye Tranum, Associate Director, Risk Management Solutions, Det Norske Veritas (DNV), Høvik, and we immediately ran down the list of places over the past 3 months, looking for when our paths crossed, and it was at DNV headquarters outside of Oslo, this past October, where I had presented on invitation of Bradd Libby, for which Boye heaped compliments upon me.

It was the same with Alfred Nordgård, Special adviser, international relations, for Norwegian oil and gas, who I met in Stavanger in December. I turned in my chair, faced him directly, and said, “we must know each other, but from where?” “Were you in Houston? etc.” and then sure enough we remembered Stavanger. We laughed and reflected aloud as if we had no longer known one’s kin from business travel, which prompted more laughter.

But. Perhaps. A few notes now, concerning The Corinthia Hotel, are in order. It is self enclosed, self-sufficient. I am told at the bar by one of the servers that, “it is the most expensive hotel in the St. Petersburg”.

As such, with the comings and goings of business men, escorts, conference meetings, dozens of servers, it is reminiscent of the Hollywood movie, The Grand Hotel, with Greta Garbo and John Barrymore.

The Corinthia carries its own forms of expectation and causality, and overlooked transgressions in social etiquette by staff.

It carries an underworld element as well, perhaps, as all those big hotels do, a certain gangster excitement for those swept up by the hotel’s complex of orchestrated sentimentalisms.

A business etiquette reins in the lobby and in the evening, everything becomes topsy-turvy.

Okay. Here we begin. I misplaced my I-phone so my photos were be a little limited. Up now is Gennady Schmal, President Union of Oil and Gas Producers of Russia. He is speaking up a storm, about exploration and production on-shore and off-shore in the Arctic, referring to the Arctic Shelf, Barents etc., 6% of proven reserves discovered in Barents, with an interest in applying experience from Norwegian friends.

Here we go. Shale gas, “has not produced any revolution” in terms of reserves but a technological revolution and we need to study the US forms and technologies to be used. Speaking of priorities, we need to identify the arctic zone, certain regions require to be included in the arctic zone, including regulatory issues, 9 million sq. K., 12% of Russian GDP, thus, increasing efficiency is a priority, but questions arise, how should people (workers and indigenous peoples) be living under commercial conditions and should be taken into account.

So we have a warm welcome by Gennady and up now is Yrjar Garshol, VP Marketing Rolls-Royce Marie.

Both Gennady and Yriar are co-chairs of the morning session. Well not too many comments from Yjrar, just a few reminders that we should have translation devices, and up now is Per Rune Henriksen, Deputy Minister, Norwegian Ministry of Petroleum.

And he’s off, speaking immediately about Norway’s priority on the High North, and strengthened relationships with Russia, responsible cooperation through the recent treaty with Russia, which now opens, a new chapter in developing energy portfolios. Giving a history of Norwegian development, the 1960s period of attracting foreign talent, who contributed with their skills, inviting a diversity of companies, stimulating competition and value, production increased etc., well, we know the story, modern Norway.

Goliath, Snøvit, major discoveries, a third major development, …

Value chain in the Barents, on going production, development of fields, all that is happening.

Today.

The delimitation line with Russia, Norway has a treaty that deals with cross border developments, in particular, the southern section of the delimitation, Barents Sea South East.

Long term and significant petroleum activities in the Barents, results in economic values for regional business, who in turn need to develop capacities to compete in participation. The Ripple effect. Success stories coming out of this part of the country. Education, on undergraduate and graduate level.

The Ru-No (Russian-Norwegian pronounced RU-no) project to handle Barents and Kara Seas production, innovation and capacities, high costs of off-shore developments, demands all kinds of experiences for facing the uncertainties of High North project.

Gennady is up again, talking up Arctic development, suggesting the Russian regulatory system has something to learn from the Norwegian neighbors.

Up now, we have Oleg Korneev, Ministry of Natural Resources of Russian Federation. Mineral resources are important for certain for the two countries.

The main avenues of mutual cooperation are: prospecting for mineral resources off-shore, environmental protection of fragile environments.

Cooperation.

Cooperation.

Ah. Cooperation

Arctic countries.

They all recognize close cooperation. Off shore, challenges in economics, legislation, research, and prime minister of Russia, Medvedev said, 2030 production in the Arctic 80 cubic billion per year in gas.

However, lack of financing could be a problem. Government and private partnerships are very welcome to Russia, for capital investment. Tax and legislative systems should require something akin to revision, for bringing in more private investment.

So here Oleg refers to the ability of Norwegian to invite and obtain high values from foreign companies. Making deposits accessible to foreign companies can be a unique tool for developing answers to interesting problems.

So, bringing in partners is an important part of Russian government initiatives.

Well. Up now we have Ali Majeed, VP Statoil. Statoil’s Arctic ambitions. Background on Arctic. Statoil has positioned itself a long time in the Arctic and they have the capacity to play a key role in development. They own large amounts of acreage. Core challenges. Ice, cold temperatures, darkness, vulnerable environment, remote areas.

More than half production coming from subsea. Tying back to existing infrastructure or subsea.

Ormen Lange 800 meter water depth, 135 KM to shore, complete subsea. Snøvit development. Ali rattles off several long sounds having to do with calculative dimensions.

Subsea compression. Enhanced recovery. Sub sea technology is a big advantage when developing Barents Sea, no platforms. Going through a genealogy of subsea platforms. Aasta Hansteen concept. Skrugard and Havis, high quality reservoirs in the Barents, new projects, and wants start up before 2020. Rosneft and Statoil agreement about safeguarding biodiversity, last october.

Ru-No Barents Project, update. Thor Christian Andvik, Project Director.

INTSOK.

Russian Norwegian oil and gas industry cooperation project in the High North. Exploration ready to begin next year. Knowledge and series exchanges will be interest. Tailor-made for cooperation between Russia and Norway on high north.

5 focus areas. Logistics/Transport; Drilling; environmental protection.  3 active task force core teams. 27 companies from both Norway and Russia, 41 individuals from Norway and Russia. 4 workshops held with nearly 200 industry representations.

One workshop took place yesterday.

Anyone is open to attend. Full registration in workshops is avail. in www.intsok.ru

Johan Petter Barlindhaug, Ru-No Task Force manager. Using a map to guide the area from short term to long term. Going North requires careful assessment. He used the term Parallelity, which I gave as the subtitle to this particular entry. I should point out here that JP Barlindhaug has a fabulous reputation for working well across the Norwegian-Russian border. He is considered the “gold standard” for moving energy projects forward through his connections to both Russians and Norwegian business.

In his talk, he mentions in fact, that Norway opened itself up to foreign investment early on, and benefitted from off-shore capacities brought to the country from the United States and elsewhere, and that in Russia today, the entire Arctic frontier from Barents to Sakhalin is run by a handful of Russian folks, who could benefit from Parallelity of practice. I thought that was a key phrase by a key individual on a Norwegian-Russian exchange, about working together to open up the frontier.

Geir Sjøberg, INTSOK Senior Advisor, 2020 short term, 2020-2040 mid term, 2040-? long term.

Anton Sungurov. Rystad Energy consultants opened an office in Moscow, and Anton gave a lecture. Interesting. He was introducted by Yjar as the man to turn to when wanting to know: “Where to go, and when to go”. Note to self.

Anton. upstream analysis. Forecasts. Here now. A number of photographers have gathered to take shots of Anton. Draws attention to sea Okhosk, but even North Caspian can be viewed as Arctic, though I won’t be speaking about that. [Problem with the slides — “It happens sometimes like that you know, when technology fails”]

Okay. Started again. Recognizes USGS 2008 figures, important, though exaggerated. After this paper was published, the major operators announced major operations in the Barents. Will not expect major work on the arctic until mid 2020s. North American arctic shut down because of shale gas, Barents will interesting.

This is an interesting talk. Outlook: For Russians, the Barents is the most important, less ice development. Kara Sea should be seen as part of the Yamal Mega project.

Gennady jumps on Anton, metaphorically, for stating that growth would take place in Sakhalin, but Anton says he is referring specifically referring to off shore.

Mr. Energy Seminars (that’s me!) will be reporting to you personally, in real time, about all the fleeting phenomena we encounter during our little journey to Russia.


By the way: Upcoming soon, the 7th Arctic Offshore Workshop, sponsored by the PETROMAKS 2 program of the Research Council of Norway and The Arkhangelsk Scientific Centre of the Ural Branch of the Russian Academy of Sciences. The workshop will be arranged in Arkhangelsk, June 17th – 20th 2013. We attended the Petromaks workshop in June 2010, taking place in Murmansk, and plan to return.