Partners have broken ground for the $3 billion (Canadian) Sable Island natural gas development project off Nova Scotia and approved key contracts worth $1 billion.
Brown & Root, a unit of Halliburton Co., and partner AGRA Monenco, got the green light to proceed with work as project managers, engineers, and procurement contractors for the project.
A groundbreaking ceremony was held Jan. 8 at Goldboro, N.S., where a plant will be built to process gas produced from six fields near Sable Island.
Agreements in place
Ken Miller, Mobil Oil Canada Ltd. frontier vice-president, said that all major agreements are now in place among partners for the Sable project.
A $1 billion pipeline will be built to begin shipping gas to Atlantic Canada and U.S. Northeast markets late in 1999.
Construction of the $2 billion first tier of the project, scheduled for completion by December 1999, includes facilities and gathering lines in Thebaud, North Triumph, and Venture fields and all onshore facilities.
Second tier development, expected to cost more than $1 billion, includes facilities and gathering lines for the Alma, Glenelg, and South Venture fields and will be completed in phases by 2006.
Sable Offshore Energy Project participants are Mobil Oil Canada Properties Ltd., Shell Canada Ltd., Imperial Oil Resources Ltd., Nova Scotia Resources Ltd., and Mosbacher Operating Ltd.
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