Sovcomflot Participates in Economist’s Arctic Summit

OAO Sovcomflot President Sergey Frank presented a report at an Arctic summit organised by The Economist, a well-respected British magazine.

The aim of the forum in Oslo was to discuss the most pressing issues concerning geopolitical and economic development in the Arctic, the ecological state of the region and the prospects of it changing in light of expanding economic activity. The summit attracted many participants, including representatives of state institutions and leading business and science experts. Among the guests were: Torgeir Larsen – State Secretary in the Norwegian Ministry of Foreign Affairs, Tom Paddon – President of Baffinland (a corporation engaged in seabed mining on Canada’s Arctic shelf), Gustaf Lind – Chairman of the Arctic Council, representatives of diplomatic missions, scientists, heads of social organisations, government bodies and business associations.

Sovcomflot’s report was presented by Sergey Frank, who noted that in conditions of expanding industrialisation and population growth, hydrocarbons would remain the primary energy source. Around 22% of the world’s unexplored oil and gas reserves are in the Arctic region. It is highly likely we will see the further development of energy projects on the Arctic shelf which, in turn, will boost global economic growth. At the same time, the harsh climatic conditions and tough environmental constraints mean suitable engineering solutions must be found for these future projects. Environmental protection is one of the most important issues and must be carefully considered by analysing the risks associated with deepwater drilling and the maritime transportation of hydrocarbons.

Since 2010, there has been a stable trend towards increasing growth in commercial shipping in the Arctic, primarily in the use of the Northern Sea Route (NSR). Some experts predict that annual shipping across the NSR could reach 70 million tonnes of cargo. Sovcomflot is one of the leading players in the sphere of maritime cargo transportation in the Arctic. Its captains and experts have longstanding experience of working in challenging and icy conditions and over a third of SCF vessels have a high ice class which allows them to operate safely and effectively in the extreme cold. Sovcomflot made history when its super tankers successfully crossed the Northern Sea Route. The first to do so was SCF Baltica in 2010, proving the commercial viability of the NSR. SCF President Sergey Frank told participants at the Arctic summit about the years of planning and risk assessment that went into making these Arctic voyages a reality.

Sovcomflot has been successfully employing new technical solutions and ice navigation strategies for many years, both during the Arctic navigation period and in operations on projects with challenging, icy conditions (Varandey and Sakhalin-I projects).

This is not the first time The Economist has mentioned Arctic development and Sovcomflot’s role in it. In June, 2012, the magazine published a special report on the Arctic, in which a separate “Shipping” section was devoted to the Northern Sea Route passage undertaken by SCF Vladimir Tikhonov (deadweight: 162,000 tonnes) – the largest tanker in history to make the crossing. During this voyage, a new deepwater route was established to the north of the New Siberia Islands archipelago, which has now been used by many other ships.

As part of the summit in the Norwegian capital, a small exposition was organised, dedicated to the work of OAO Sovcomflot and Arctic voyages undertaken by SCF tankers across the Northern Sea Route.

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LNG World News Staff, March 29, 2013; Image: SCF