Husky awards White Rose engineering contract

Husky Energy Inc. subsidiary Husky Oil Operations Ltd. and Petro-Canada have awarded Maersk/Seabase the front-end engineering design contract for the White Rose oil field's floating production, storage, and offloading vessel.

Calgary-based Husky Oil Operations Ltd., a subsidiary of Husky Energy Inc., and Petro-Canada, also of Calgary, have awarded Maersk/Seabase, St. John's, Newf., the front-end engineering design contract for the White Rose field's floating production, storage, and offloading vessel (FPSO).

The contract will finalize the functional design, engineering and operational aspects of the FPSO to determine firm costs for the production facility. A significant portion of this contract involves the bidding of the topsides facilities, including the design, engineering, acquisition, fabrication, and hookup. Chris Bailey, operations manager of Husky, said the confirmation of development costs allows the company to move forward with the filing of the development application.

Husky is also issuing requests for proposals to design the project's subsea production systems, which include subsea trees, templates, manifolds, flowlines, umbilical lines and control systems. Bids are due in early December 2000 with a contract anticipated in the first quarter of 2001.

The White Rose oil field is located in the Jeanne d'Arc basin on the Grand Banks 350 km east of Newfoundland. Husky Oil and Petro-Canada estimate the field to hold reserves between 250-275 million bbl of oil, 2.1 tcf of gas and 77 million bbl of natural gas liquids. Husky Oil is operator of the White Rose field and holds a 72.5% interest in the field. Petro-Canada owns 27.5% interest.

A study comprising the environmental and socioeconomic impact statements for the White Rose project was filed Tuesday with the Canada-Newfoundland Offshore Petroleum Board. The comprehensive study is part of the regulatory requirement for the development of the White Rose oil field under the Canadian Environmental Assessment Act.

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