Offshore Projects and Exploration in NL
Three oil projects produce offshore Newfoundland and Labrador:
- Hibernia, operated by Hibernia Management and Development Company Ltd.
- Terra Nova, operated by Suncor Energy
- White Rose, operated by Husky Energy
A fourth oil project – Hebron – is under development and expected to begin production in 2017.
Growth Potential and Exploration Activity
The government of Newfoundland and Labrador estimates Newfoundland and Labrador’s offshore resource potential at more than six billion barrels of oil and 60 trillion cubic feet of natural gas.
The key to unlocking this potential is exploration activity, which could lead to new discoveries and future developments. The Newfoundland and Labrador offshore has seen significant exploration activity in recent years, and there is evidence to support its continuation and expansion. For example, exploratory work in Newfoundland and Labrador’s Flemish Pass basin resulted in one of the largest discoveries in the world at that time by Statoil and Husky Energy. Exploration continues in the Flemish Pass basin and exploration programs are also ongoing in the Jeanne d’Arc Basin, the basin where all three currently producing projects are located.
Extending the Life of Existing Fields
Producing operators are focusing on extending the life of existing fields by producing smaller discoveries through extensions and tie-backs to existing infrastructure.
For example, Husky Energy is exploring the possibility of developing its West White Rose field via a wellhead platform or subsea development, which would tie back to the SeaRose Floating Production Storage and Offloading vessel (FPSO) and is moving forward with a subsea tie-back to develop its South White Rose field. The White Rose Extension Project development cost is estimated at $2.5 billion. Hibernia Management and Development Company Limited is also continuing work on the Hibernia Southern Extension – a $1.7 billion subsea tie-back project.
Other operators are continuing with exploration and delineation programs with a goal of extending the life of existing projects.