Atlantic Canada's Offshore Fields
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OFFSHORE REVIEW ATLANTIC CANADA’S Engineering OFFSHORE FIELDS Looking towards a brighter, Subsea petroleum-powered future By Ashley A. Clarke It has proven to be an ever-changing and expanding industry that has presented the promise of future opportunities for the country and transformed the face of Atlantic Canada. “It” is, of course, the region’s Solutions offshore oil and gas industry, an industry that has pumped billions of dollars into the Canadian economy and provided thousands of employment opportunities both federally and provincially. Canada’s first offshore well was drilled between 1943 and 1945 in eight metres of water, 13 kilometres off Prince Edward Island. Hillsborough No. 1 was drilled from an artificial island made of wood cribbing, rock and concrete, and reached a depth of 4,479 meters before it was abandoned without encountering oil or natural gas. A half-century of effort was invested before the first commercial quantities of crude oil were produced off Nova Scotia in 1992 from the Cohasset-Panuke project. Nearly 20 years later, offshore petroleum development is considered one of the fastest growing sectors in the country. To date, there are four major oil fields currently producing in the Atlantic Canada offshore and the future is brighter than ever before. The past fiscal year has brought many changes and new discoveries for the oil and gas industry. Here are a few of the year’s highlights. www.oceaneering.com NR18 | NATURAL RESOURCES MAGAZINE | March/April 2012 Engineering Subsea Solutions FP OCEANEERING www.oceaneering.com DEVELOPMENTS MIZZEN ON THE MIND More drilling planned on Statoil’s Flemish Pass site; HIBERNIA 2009 results due for release he name may sound like the villain Tin a Dickens novel, but the local t is the foundation of the consisting of thick fog, rogue waves, oilpatch hopes Mizzen turns out to be Newfoundland and Labrador oil hurricanes and nor’easter winter more generous than Scrooge. Iand gas industry, an industry storms. Nearly two years ago, Statoil Canada which is powering the provincial When development of the oilfield wrapped up its first round of exploratory economy. The Hibernia oilfield is was approved in 1986, it was drilling at the Mizzen O-16 site, located in located in the Jeanne d’Arc Basin estimated to contain 522 million Source: C-NLOPB Source: the Flemish Pass roughly 500 kilometres on the Grand Banks, about 315 km barrels of recoverable crude. The east of St. John’s. Statoil applied for, and east-southeast of St. John’s. As the Canada-Newfoundland and Labrador received, a significant discovery licence oldest and largest operating field, Offshore Petroleum Board listed (SDL) after completing its 2009 Mizzen the $5.8-billion development is now the total oil field production at drilling program. considered the crown jewel of the 736.1-million barrels as of March The confidentiality period for those criteriaindustry. include a comprehensive evaluation 2011. Thein Mizzen. update “I thinkalso listed it’s very the difficult to be drilling results will expire near the end of the entireEarly engineering project, looking analyses at factors right estimatedspecific reserves on that. as beingBut it’s 1.395 obvious — we’re of March. That should shed at least some up toconcluded the type that of theproduction most appropriate facility that billionnow barrelstalking of explorationoil. — that we as a light on what the company found. But for woulddrilling be best platform suited forto producethe field the oil. Thecompany development at that oftime, Hibernia and also laid now, had now, Statoil is keeping its cards close to its Statoilwould took be in over the formthe site of ain gravity 2008. Petro- thebelief ground in workthe area for thein generaldevelopment in (the) Grand chest. Canadabase hadstructure drilled (GBS) an unsuccessful because well at of TerraBanks Nova and andin those White areas Rose, which the we picked “We have of course done some technical Mizzenthe Hibernia five years field earlier. is located Statoil in spudded province’sup acreage. two other …It’s offshore a subsurface-driven oil and economic assessment of what is needed its ownan environmentexploratory wellthat duringis subject the harsher projectsdecision.” currently in operation on the to have a commercial discovery there,” says winterto months, extreme justweather in time conditions to avoid losing GrandThe Banks. 2009 announcement that Statoil Geir Richardsen, vice-president of Statoil its licence for the area. had encountered hydrocarbons at Mizzen Canada Exploration. “But if this one meets Richardsen deftly stickhandles around — and the subsequent successful SDL these criteria, we don’t know yet.” Those questions about why Statoil took an interest application — sent industry tongues awag. 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St. John’s, NL • Phone: 709.754.0888 • Fax: 709.754.1333 • www.easternindustrial.com NR20NR20 | |NATURAL Natural Resources RESOURCES Magazine MAGAZINE | March/April | March/April 2011 2012 NRM V22N2 2011.indd 20 2/14/11 4:07:04 PM FAST FACTS • Hibernia was discovered in 1979 and produced first oil on for the staged development of the Cape Island and November 17, 1997. Catalina secondary reservoirs. • It consists of two principle reservoirs: Hibernia and Ben • Four new wells were drilled from the existing Hibernia Nevis/Avalon. platform in 2010-11, including the B-16 56, which is the longest well drilled to date. This fiscal year also saw the • It is operated by Hibernia Management and Development completion of Hibernia B-16 5Z and B-16 54V, a producer Company Ltd. (HMDC) which is owned jointly by and injector pair in the Hibernia South AA2 Block. The ExxonMobil Canada (33.125 per cent), Chevron Canada Hibernia B-16 48Y well was also completed. The blocks Resources (26.875 per cent), Suncor (Petro-Canada) (20 are estimated to contain more than 48-million barrels of per cent), Canada Hibernia Holding Corporation (8.5 per oil. cent), Murphy Oil (6.5 per cent) and Statoil Canada Ltd. (five per cent). • Industry officials reported expenditures of $486 million for the 2010-2011 fiscal year, with 76 per cent Canadian • Hibernia produces conventional light crude oil. content including 49 per cent Newfoundland and • According to the C-NLOPB, it holds an estimated 1.395- Labrador content. As of March 31, 2011, total direct billion barrels of oil, of which 736.1-million barrels were employment in the province in support of the Hibernia produced as of March 21, 2011. project was reportedly 1,690 people, though this number • Hibernia produced an average of 153,000-million barrels was not confirmed by HMDC. of oil per day in 2010-2011. • The blocks are part of the main Hibernia field and are • Hibernia has seen many updates in the past year: estimated to contain more than 48-million barrels of oil. industry officials approved a DPA (Decision Report • Hibernia originally had an estimated lifespan of 20 years. 2010.02) that allowed development of the Hibernia It is anticipated that it will continue to produce until Southern Extension. The approval also granted approval 2040. NAMSS is proud to be the Canadian distributor for Tiger. 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A total of 30 was first discovered in 1984 by wells are planned for Terra Nova, Petro-Canada. Field reserves have including 17 production wells, 10 been estimated at 516 million water-injection wells and three gas barrels (operator estimate, year injection wells. end 2010). The $2.8-billion Suncor Energy reported project began production in 2002, expenditures of $249 million for and has a maximum approved the fiscal year 2010-11, with 76 per production rate of 28, 620 cubic cent Canadian content including metres of crude oil per day. As 59 per cent Newfoundland and of December 31, 2011, total Labrador content. As of March 31, production was reported to be 2011, total employment in support 327 millions barrels of oil. of the Terra Nova project was 841 Terra Nova is subdivided persons. into three major structural A Global Provider of Project Personnel Strong Local Presence Exciting Technical & Project Management Roles Available www.dovregroup.com NR22 | NATURAL RESOURCES MAGAZINE | March/April 2012 FAST FACTS • The Terra Nova oilfield was discovered in 1984 and produced first oil on January 20, 2002.