By OGJ editors
HOUSTON, June 7 -- Husky Energy Inc., Calgary, is evaluating the viability of producing and transporting natural gas from White Rose field, 350 km off Newfoundland and Labrador, and the key technical, economic, and regulatory issues critical to safe and reliable gas development on the Grand Banks, as well as its capital and operating costs.
Husky's initial review of likely technologies indicates that a marine transportation system using compressed gas has potential, but it wants to consider other possibilities and is inviting proposals by June 30 for programs that encompass all technologies.
Following a conceptual designs review, Husky may select one or more firms to participate in a Request for Proposal process, outlining the potential project's broad objectives and expected deliverables.
"In order to evaluate natural gas development in the Jeanne d'Arc basin, new technologies will need to be developed, and today we believe this is possible," said Husky Pres. and CEO John C.S. Lau.
Canada-Newfoundland Offshore Petroleum Board (C-NOPB) May 19 estimated reserves in the Newfoundland and Labrador offshore area at 2.1 billion bbl of oil and 9.6 tcf of natural gas. C-NOPB estimates that White Rose has gas resources of 2.7 tcf.
Husky owns 72.5% of White Rose. The oil project has a capital cost of $2.35 billion and is scheduled to commence producing oil by yearend 2005 or early 2006.
Anticipated deliverables from the work program include: an evaluation of viable alternatives, capital and operating cost estimate for each option, and a methodical selection process to identify a preferred development option.
Also an evaluation of any unproven technology issues and procedures, including proposed work programs; testing to address these uncertainties and an estimate of the development time and costs required; an estimate of system operations, including reliability and weather related factors based on simulation modeling; identification and quantification of safety and environmental related issues and risk factors; and an evaluation of regulatory issues during all stages of the gas development. This should include national and international regulations, protocols, and codes, Husky said.
