Offshore Production |
Oil production is increasing once again this year with output
expected to rise to about 124 million barrels, up almost 20%
from 2002.
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While growth in oil production is significant, it is lower
than the 31% that was forecast in March. This is mainly a
result of lower than anticipated production at Terra Nova.
Production at Terra Nova was adversely impacted by the
inability to offload oil from the facility at times due to
poor weather and storm damage to one of its shuttle tankers,
as well as gas compressor problems. These issues have been
resolved and are not expected to have long-term impacts on
production.
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| Value of Oil Production
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| Source: Department of Mines and Energy: Department of Finance |
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Terra Nova recorded production of 40.1 million barrels in the
January to October period, 34% higher than in the same period
of 2002. Hibernia produced 62.4 million barrels during the
same period, representing a year-over-year increase of over
17%. |
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Exploration
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Two exploratory wells were
drilled by Petro-Canada in the Flemish Pass in 2003.
Both wells were abandoned, although one well was
reported to have encountered non-commercial quantities
of oil. Presently, there are no definite plans for
exploratory drilling in 2004, but stakeholders have
indicated that 4 to 6 wells are possible over the next
several years.
Future exploration may also take place in the relatively
unexplored Orphan Basin on the Northeast Grand Banks and
in the Laurentian Sub-Basin off the province's south
coast. Most of the properties in the current offshore
land sale, which closes on December 17th, are in the
Orphan Basin. The Canada-Newfoundland Offshore Petroleum
Board is currently negotiating with oil companies who
hold existing permits in the Laurentian Sub-Basin to
convert the permits to exploratory licences. These
negotiations, among other things, will determine when
activity in this area can begin.
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| White Rose |
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Husky Energy (Operator)
continues to make good progress on the White Rose project with
production expected to begin in late 2005 or early 2006. Glory holes
were completed in September and development drilling commenced using
the drill rig Glomar Grand Banks. Work is also ongoing throughout
various parts of the world on the components of the Floating
Production, Storage and Offloading (FPSO) vessel and the subsea
production system.
In this province, a combined total of over 1,900 people were employed
on the project at the end of September carrying out work in Marystown,
Bull Arm, and St. John’s. The greatest concentration of activity
taking place in the Province is associated with topsides fabrication
at the Marystown shipyard and adjacent Cowhead facility. Employment at
these two facilities currently stands at about 520, with the work
force expected to increase to 600 by year-end. The FPSO is due to
arrive at the Shipyard in the first half of 2004. |
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