First Offshore Drilling In The Beaufort Sea
Authors: Todd M.D. 
Published: October 2008

INTRODUCTION

In Oct. 1977, Canadian Marine Drilling Ltd., a wholly owned subsidiary of Dome Petroleum Ltd., a Canadian company, completed its second season of drilling operations in the Beaufort Sea, 350 miles north of the Arctic Circle. The season ended on an encouraging note with the announcement that tests at Nektoralik K-59 recovered medium gravity oil with flow rates to surface ranging up to 1,150 B/D and at Ukalerk C-50 gas rates of up to 16.9 MMcf/D. Gas was encountered also at the Kopanoar M-13 well, but no tests were conducted.

Dome/Canmar's Beaufort Sea Exploration Project continues to present a unique challenge. Operations in remote areas are not particularly new to the oil industry. However, in addition to the usual problems associated with remote operations, the offshore Beaufort Sea project has been confronted with a hostile climate, an ocean totally covered by ice for the majority of the year, an unknown geologic province, unique environmental problems, very strict and demanding government regulations, uncertain land-use regulations and drilling regulations, and a complex political climate. Complicating political factors including pending native land claims, the Mackenzie Valley Pipeline Inquiry and intense public interest focused on the Beaufort as a result of the native people's situation, and environmental matters. These conditions collectively generate the highest cost exploration project in the history of petroleum exploration. The problems have been overcome and the past 2 years of operation have demonstrated that drilling in the Beaufort Sea is feasible. Costs are expected to decrease as new technology extends the operating season. Year-round exploratory operations can be expected in the near future.

BACKGROUND

The Beaufort Sea geological basin encompasses approximately 150,000 sq miles of Devonian, Mesozoic, and Cenozoic clastic sediments up to 30,000 ft thick. Hydrocarbon potential is estimated at 30 to 40 billion bbl of recoverable oil and 250 to 320 Tcf of gas. The numerous deep-seated structures similar to those in the Gulf of Mexico are large and a high success ratio is expected.

Exploration permits were awarded to a number of companies between 1965 and 1969. Geologic maps produced from extensive offshore seismic in the Beaufort Sea excited the interest of all explorationists. Considerable time elapsed after this phase of exploration as the Federal Government developed regulations to govern land use and drilling.

The government established interim regulations that were very stringent. In 1972, Dome undertook to meet these requirements. The most stringent requirement was that two complete drilling systems with attendant supply ships would be required for any Beaufort Sea exploration program so that one system could come to the aid of another in the event of the requirement for a relief well.

In 1973, Dome established a wholly owned offshore drilling subsidiary, Canadian Marine Drilling Ltd. (Canmar), to carry out the Beaufort Sea drilling program, after establishing that suitable equipment did not exist within the oil industry at that time.