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Hibernia production in 2001 is expected to be about 53 million barrels, on par with 2000. The value of production is expected to be about $2 billion compared to $2.2 billion in 2000. Production is expected to approach 60 million barrels in 2002.
Terra Nova production is now expected to begin late in the fourth quarter. Production is expected to be lower than the Budget forecast of 2 million barrels. The floating production, storage and offloading (FPSO) vessel arrived at the Terra Nova field on August 4. Project owners are permitted to produce 100,600 barrels a day (over 36 million annually) but have requested the Canada-Newfoundland Offshore Petroleum Board to increase the limit to 150,000 barrels. The Board has deferred its decision pending detailed production information in 2002.
Preparations for White Rose are continuing. Government is expected to make a decision on the Development Application by year end. A decision by the owners to proceed with the project is expected shortly thereafter. Initial production, using a FPSO vessel, is expected to be around 92,000 barrels per day (34 million barrels annually). First production is expected by 2004.
Project evaluation work has commenced for the Hebron-Ben Nevis field which is estimated to contain over 400 million barrels of oil. Activity in 2001 included detailed field viability analysis and assessment of development options. Project owners indicate that a Development Application could be filed by mid-2002.
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Photo courtesy of: Terra Nova Development
Terra Nova FPSO preparing to sail away to the Grand Banks |
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Source: Canada-Newfoundland Offshore
Petroleum Board |
On a smaller scale, the onshore Garden Hill project was released from the Province’s environmental assessment process in October 2001. Pending government approval of the project owner’s development plan, production could begin in 2002.
Offshore exploration in 2001 focused on seismic data collection in the Jeanne d’Arc Basin and in deeper water areas (e.g., the Flemish Pass). Drilling activity is expected in the Flemish Pass and other deep water areas next year. Industry is increasingly interested in new frontier exploration. In 2000, eight of ten offshore exploration licences were issued outside the Jeanne d’Arc Basin, and ten of 14 parcels bid this year are outside this basin. The last phase of the settlement process for the South Coast boundary dispute with Nova Scotia commenced in November 2001. A resolution of this dispute is expected next year and should open this area for exploration.
Onshore, exploration operations were conducted on several wells on the West Coast. An additional well (in the Harry’s River area near Corner Brook) may be spudded by year end.
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